Five Point Holdings, LLC (NYSE:FPH) Q1 2024 Earnings Conference Call April 18, 2024 5:00 PM ET

Company Participants

Dan Hedigan - CEO
Kim Tobler - CFO
Stuart Miller - Executive Chairman

Conference Call Participants

Alan Ratner - Zelman & Associates
Myron Kaplan - Private Investor

Operator

Greetings, and welcome to the Five Point Holdings, LLC First Quarter 2024 Conference Call. As a reminder, this call is being recorded. Today's call may include forward-looking statements regarding Five Point's business, financial conditions, operations, cash flow, strategy and prospects.

Forward-looking statements represent Five Point's estimates on the data of this conference call and are not intended to give any assurance to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

Many factors could affect future results and may cause Five Point's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in today's press release and Five Point's SEC filings, including those in the Risk Factors section of Five Point's most recent annual report on Form 10-K filed with the SEC. Please note that Five Point assumes no obligation to update any forward-looking statements.

Now, I would like to turn the call over to Dan Hedigan, Chief Executive Officer.

Dan Hedigan

Thank you. Good afternoon, and thank you for joining our call. I have with me today Kim Tobler, our Chief Financial Officer; Mike Alvarado, our Chief Operating Officer and Chief Legal Officer; and Leo Kij, our Senior Vice President of Finance and Reporting. Stuart Miller, our Executive Chairman, is joining us remotely.

On today's call, I'll update you on our Q1 results, on our team's focused during the quarter and the steps we are taking to implement our strategic priorities. Next, Kim will give an overview of the company's financial performance and condition with some limited guidance for the second quarter and the full year. We will then open the line for questions to our management team.

So let's begin. I am very pleased to report another strong quarterly performance for Five Point as we continue to focus on fortifying our balance sheet, controlling our expenses and carefully managing our capital spend to match near-term revenues. Accordingly, we're happy to report a profitable first quarter, consistent with our expectations as we started the year.

Our net income for the quarter was $6.1 million, which reflects the strength of the builder interest in our two active communities. Specifically, in February, we sold 11.6 acres of land at the Great Park for $6.4 million per acre for a total sales price of $74.6 million with a 60% profit margin. This sale contributed to the $17.7 million of equity and earnings from unconsolidated investments for the quarter.