Company Quick10K Filing
Quick10K
Five Point Holdings
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-07-26 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2019-07-23 Other Events, Exhibits
8-K 2019-06-06 Officers, Shareholder Vote
8-K 2019-05-10 Enter Agreement, Exhibits
8-K 2019-05-07 Earnings, Exhibits
8-K 2019-03-13 Earnings, Exhibits
8-K 2019-02-18 Officers
8-K 2019-02-13 Enter Agreement, Leave Agreement
8-K 2018-11-13 Earnings, Exhibits
8-K 2018-08-13 Earnings, Exhibits
8-K 2018-08-10 Enter Agreement, Exhibits
8-K 2018-05-14 Earnings, Exhibits
8-K 2018-04-19 Sale of Shares
8-K 2018-03-29 Earnings, Officers, Exhibits
CBRE CBRE Group 17,534
JLL Jones Lang Lasalle 6,017
HPP Hudson Pacific Properties 5,139
HPP Hudson Pacific Properties 5,139
CIGI Colliers 2,635
RLGY Realogy Holdings 540
FRPH FRP Holdings 483
BBX BBX Capital 391
ARL American Realty Investors 187
BOMN Boston Omaha 0
FPH 2019-06-30
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 fph-63019x10qxexhx311.htm
EX-31.2 fph-63019x10qxexhx312.htm
EX-32.1 fph-63019x10qxexhx321.htm
EX-32.2 fph-63019x10qxexhx322.htm

Five Point Holdings Earnings 2019-06-30

FPH 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
false--12-31Q22019000157419700000110.75066810980788387366874655579275234668109807883873668746555792752340.07875180000024000001400000 0001574197 2019-01-01 2019-06-30 0001574197 us-gaap:CommonClassBMember 2019-07-31 0001574197 us-gaap:CommonClassAMember 2019-07-31 0001574197 2019-06-30 0001574197 2018-12-31 0001574197 us-gaap:CommonClassAMember 2018-12-31 0001574197 us-gaap:CommonClassAMember 2019-06-30 0001574197 us-gaap:CommonClassBMember 2018-12-31 0001574197 us-gaap:CommonClassBMember 2019-06-30 0001574197 2019-04-01 2019-06-30 0001574197 us-gaap:CommonClassAMember 2019-01-01 2019-06-30 0001574197 2018-04-01 2018-06-30 0001574197 us-gaap:ManagementServiceMember 2019-04-01 2019-06-30 0001574197 us-gaap:LandMember 2019-01-01 2019-06-30 0001574197 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassBMember 2018-04-01 2018-06-30 0001574197 us-gaap:LandMember 2018-01-01 2018-06-30 0001574197 us-gaap:ManagementServiceMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember 2018-04-01 2018-06-30 0001574197 us-gaap:CommonClassAMember 2018-04-01 2018-06-30 0001574197 us-gaap:CommonClassAMember 2019-04-01 2019-06-30 0001574197 us-gaap:ManagementServiceMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001574197 us-gaap:CommonClassBMember 2019-01-01 2019-06-30 0001574197 us-gaap:CommonClassBMember 2019-04-01 2019-06-30 0001574197 us-gaap:LandMember 2019-04-01 2019-06-30 0001574197 us-gaap:LandMember srt:AffiliatedEntityMember 2019-04-01 2019-06-30 0001574197 us-gaap:LandMember srt:AffiliatedEntityMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember 2019-01-01 2019-06-30 0001574197 us-gaap:ManagementServiceMember srt:AffiliatedEntityMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember 2019-04-01 2019-06-30 0001574197 us-gaap:CommonClassBMember 2018-01-01 2018-06-30 0001574197 us-gaap:ManagementServiceMember srt:AffiliatedEntityMember 2018-01-01 2018-06-30 0001574197 fph:OperatingPropertiesMember 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassAMember 2018-01-01 2018-06-30 0001574197 us-gaap:LandMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001574197 us-gaap:ManagementServiceMember srt:AffiliatedEntityMember 2019-04-01 2019-06-30 0001574197 us-gaap:ManagementServiceMember 2018-01-01 2018-06-30 0001574197 us-gaap:LandMember 2018-04-01 2018-06-30 0001574197 us-gaap:LandMember srt:AffiliatedEntityMember 2018-01-01 2018-06-30 0001574197 us-gaap:ManagementServiceMember 2019-01-01 2019-06-30 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0001574197 us-gaap:ParentMember 2018-06-30 0001574197 us-gaap:NoncontrollingInterestMember 2019-03-31 0001574197 us-gaap:ParentMember 2018-04-01 2018-06-30 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-06-30 0001574197 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001574197 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001574197 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001574197 us-gaap:RetainedEarningsMember 2019-03-31 0001574197 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001574197 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001574197 2019-03-31 0001574197 us-gaap:ParentMember 2019-04-01 2019-06-30 0001574197 2018-03-31 0001574197 us-gaap:NoncontrollingInterestMember 2018-06-30 0001574197 us-gaap:RetainedEarningsMember 2018-03-31 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001574197 us-gaap:ParentMember 2019-06-30 0001574197 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-03-31 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0001574197 us-gaap:NoncontrollingInterestMember 2019-06-30 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-06-30 0001574197 us-gaap:RetainedEarningsMember 2018-06-30 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001574197 us-gaap:ParentMember 2019-03-31 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-03-31 0001574197 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-03-31 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001574197 2018-06-30 0001574197 us-gaap:RetainedEarningsMember 2019-06-30 0001574197 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-03-31 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-06-30 0001574197 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001574197 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001574197 us-gaap:NoncontrollingInterestMember 2018-03-31 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-06-30 0001574197 us-gaap:ParentMember 2018-03-31 0001574197 us-gaap:ParentMember 2018-01-01 2018-06-30 0001574197 us-gaap:ParentMember 2017-12-31 0001574197 us-gaap:ParentMember 2019-01-01 2019-06-30 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-01-01 2018-06-30 0001574197 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001574197 us-gaap:NoncontrollingInterestMember 2018-12-31 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2017-12-31 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-06-30 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001574197 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2017-12-31 0001574197 us-gaap:NoncontrollingInterestMember 2018-01-01 0001574197 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-06-30 0001574197 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001574197 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001574197 us-gaap:RetainedEarningsMember 2018-12-31 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-01-01 2018-06-30 0001574197 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001574197 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0001574197 us-gaap:ParentMember 2018-01-01 0001574197 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001574197 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2018-12-31 0001574197 us-gaap:NoncontrollingInterestMember 2017-12-31 0001574197 2018-01-01 0001574197 us-gaap:ParentMember 2018-12-31 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2019-01-01 2019-06-30 0001574197 us-gaap:RetainedEarningsMember 2017-12-31 0001574197 2017-12-31 0001574197 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001574197 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2018-12-31 0001574197 us-gaap:RetainedEarningsMember 2018-01-01 0001574197 fph:HeritageFieldsLLCMember 2019-06-30 0001574197 fph:GreatParkVentureMember fph:ContingentPaymentsDuefromRelatedPartiesMember us-gaap:EquityMethodInvesteeMember 2019-06-30 0001574197 fph:FivePointOperatingCompanyLLCMember fph:TheSanFranciscoVentureMember srt:AffiliatedEntityMember 2019-06-30 0001574197 us-gaap:CommonClassBMember 2019-01-01 2019-06-30 0001574197 fph:FivePointOperatingCompanyLLCMember srt:ParentCompanyMember srt:AffiliatedEntityMember us-gaap:SubsequentEventMember 2019-07-31 0001574197 fph:FivePointOperatingCompanyLLCMember fph:TheSanFranciscoVentureMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001574197 fph:FivePointOperatingCompanyLLCMember srt:ParentCompanyMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001574197 fph:FPOVHIMemberLLCMember fph:FivePointOfficeVentureHoldingsILLCAcquisitionMember 2019-06-30 0001574197 us-gaap:SubsequentEventMember 2019-07-31 0001574197 fph:GreatParkVentureMember fph:LegacyIncentiveCompensationReceivableMember us-gaap:EquityMethodInvesteeMember 2019-06-30 0001574197 fph:GreatParkVentureMember 2019-06-30 0001574197 fph:SanFranciscoVentureMember us-gaap:SubsidiaryOfCommonParentMember 2019-01-01 2019-06-30 0001574197 fph:FivePointLandLLCMember us-gaap:SubsidiaryOfCommonParentMember 2019-01-01 2019-06-30 0001574197 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001574197 2019-01-01 0001574197 2018-01-01 2018-01-31 0001574197 fph:ManagementServicesMember fph:GreatParkVentureMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:NewhallMember 2018-04-01 2018-06-30 0001574197 fph:GreatParkVentureMember 2018-01-01 2018-06-30 0001574197 fph:ManagementServicesMember 2018-01-01 2018-06-30 0001574197 fph:LandSalesMember fph:SanFranciscoMember 2018-04-01 2018-06-30 0001574197 fph:SanFranciscoMember 2018-04-01 2018-06-30 0001574197 fph:CommercialLeasingMember 2018-01-01 2018-06-30 0001574197 fph:LandSalesMember fph:CommercialLeasingMember 2018-01-01 2018-06-30 0001574197 fph:SanFranciscoMember 2018-01-01 2018-06-30 0001574197 fph:ManagementServicesMember fph:GreatParkVentureMember 2018-01-01 2018-06-30 0001574197 fph:NewhallMember 2018-01-01 2018-06-30 0001574197 fph:LandSalesMember fph:NewhallMember 2018-01-01 2018-06-30 0001574197 fph:ManagementServicesMember fph:NewhallMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:GreatParkVentureMember 2018-04-01 2018-06-30 0001574197 fph:LandSalesMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:SanFranciscoMember 2018-01-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:NewhallMember 2018-01-01 2018-06-30 0001574197 fph:ManagementServicesMember 2018-04-01 2018-06-30 0001574197 fph:CommercialLeasingMember 2018-04-01 2018-06-30 0001574197 fph:NewhallMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:CommercialLeasingMember 2018-01-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:SanFranciscoMember 2018-04-01 2018-06-30 0001574197 fph:ManagementServicesMember fph:CommercialLeasingMember 2018-01-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:GreatParkVentureMember 2018-01-01 2018-06-30 0001574197 fph:ManagementServicesMember fph:CommercialLeasingMember 2018-04-01 2018-06-30 0001574197 fph:LandSalesMember fph:GreatParkVentureMember 2018-04-01 2018-06-30 0001574197 fph:LandSalesMember fph:GreatParkVentureMember 2018-01-01 2018-06-30 0001574197 fph:LandSalesMember fph:SanFranciscoMember 2018-01-01 2018-06-30 0001574197 fph:LandSalesMember fph:CommercialLeasingMember 2018-04-01 2018-06-30 0001574197 fph:LandSalesMember 2018-01-01 2018-06-30 0001574197 fph:LandSalesMember fph:NewhallMember 2018-04-01 2018-06-30 0001574197 fph:OperatingPropertiesMember fph:CommercialLeasingMember 2018-04-01 2018-06-30 0001574197 fph:ManagementServicesMember fph:SanFranciscoMember 2018-01-01 2018-06-30 0001574197 fph:GreatParkVentureMember 2018-04-01 2018-06-30 0001574197 fph:ManagementServicesMember fph:NewhallMember 2018-01-01 2018-06-30 0001574197 fph:ManagementServicesMember fph:SanFranciscoMember 2018-04-01 2018-06-30 0001574197 fph:GreatParkVentureMember 2019-06-30 0001574197 fph:ManagementServicesMember fph:SanFranciscoMember 2019-01-01 2019-06-30 0001574197 fph:GreatParkVentureMember 2019-04-01 2019-06-30 0001574197 fph:SanFranciscoMember 2019-04-01 2019-06-30 0001574197 fph:ManagementServicesMember fph:NewhallMember 2019-04-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:SanFranciscoMember 2019-04-01 2019-06-30 0001574197 fph:ManagementServicesMember 2019-04-01 2019-06-30 0001574197 fph:LandSalesMember fph:GreatParkVentureMember 2019-01-01 2019-06-30 0001574197 fph:LandSalesMember fph:NewhallMember 2019-04-01 2019-06-30 0001574197 fph:LandSalesMember fph:SanFranciscoMember 2019-04-01 2019-06-30 0001574197 fph:LandSalesMember fph:CommercialLeasingMember 2019-01-01 2019-06-30 0001574197 fph:NewhallMember 2019-01-01 2019-06-30 0001574197 fph:CommercialLeasingMember 2019-01-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:CommercialLeasingMember 2019-04-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:NewhallMember 2019-01-01 2019-06-30 0001574197 fph:GreatParkVentureMember 2019-01-01 2019-06-30 0001574197 fph:LandSalesMember 2019-01-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:NewhallMember 2019-04-01 2019-06-30 0001574197 fph:NewhallMember 2019-04-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:GreatParkVentureMember 2019-01-01 2019-06-30 0001574197 fph:CommercialLeasingMember 2019-04-01 2019-06-30 0001574197 fph:SanFranciscoMember 2019-01-01 2019-06-30 0001574197 fph:LandSalesMember fph:NewhallMember 2019-01-01 2019-06-30 0001574197 fph:LandSalesMember fph:SanFranciscoMember 2019-01-01 2019-06-30 0001574197 fph:ManagementServicesMember fph:NewhallMember 2019-01-01 2019-06-30 0001574197 fph:ManagementServicesMember fph:CommercialLeasingMember 2019-01-01 2019-06-30 0001574197 fph:LandSalesMember fph:CommercialLeasingMember 2019-04-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:GreatParkVentureMember 2019-04-01 2019-06-30 0001574197 fph:ManagementServicesMember 2019-01-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:CommercialLeasingMember 2019-01-01 2019-06-30 0001574197 fph:LandSalesMember fph:GreatParkVentureMember 2019-04-01 2019-06-30 0001574197 fph:OperatingPropertiesMember fph:SanFranciscoMember 2019-01-01 2019-06-30 0001574197 fph:ManagementServicesMember fph:GreatParkVentureMember 2019-01-01 2019-06-30 0001574197 fph:ManagementServicesMember fph:CommercialLeasingMember 2019-04-01 2019-06-30 0001574197 fph:ManagementServicesMember fph:GreatParkVentureMember 2019-04-01 2019-06-30 0001574197 fph:LandSalesMember 2019-04-01 2019-06-30 0001574197 fph:ManagementServicesMember fph:SanFranciscoMember 2019-04-01 2019-06-30 0001574197 fph:GreatParkVentureMember 2018-12-31 0001574197 fph:GatewayCommercialVentureLLCAMember 2019-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember 2018-12-31 0001574197 fph:GreatParkVentureMember 2019-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember fph:FivePointOfficeVentureHoldingsILLCAcquisitionMember 2019-06-30 0001574197 fph:GreatParkVentureMember 2019-01-01 2019-06-30 0001574197 fph:GreatParkVentureMember us-gaap:LandMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember fph:RentalRevenueMember srt:AffiliatedEntityMember 2019-01-01 2019-06-30 0001574197 fph:GreatParkVentureMember us-gaap:LandMember 2019-01-01 2019-06-30 0001574197 fph:GreatParkVentureMember fph:HomesitesSoldMember 2019-01-01 2019-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember 2018-01-01 2018-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember 2019-01-01 2019-06-30 0001574197 fph:GreatParkVentureMember 2018-01-01 2018-06-30 0001574197 fph:FivePointOperatingCompanyLLCMember us-gaap:CommonClassBMember 2019-06-30 0001574197 fph:FivePointOperatingCompanyLLCMember us-gaap:CapitalUnitClassAMember srt:AffiliatedEntityMember 2019-06-30 0001574197 fph:TheSanFranciscoVentureMember 2019-01-01 2019-06-30 0001574197 fph:SanFranciscoVentureMember 2019-02-13 2019-02-13 0001574197 fph:FivePointOperatingCompanyLLCMember 2019-06-30 0001574197 fph:SanFranciscoVentureMember 2019-01-01 2019-06-30 0001574197 fph:FivePointOperatingCompanyLLCMember us-gaap:CapitalUnitClassBMember srt:AffiliatedEntityMember 2019-06-30 0001574197 fph:ConversionofClassBCommonSharesIntoClassACommonSharesMember 2019-01-01 2019-06-30 0001574197 fph:SanFranciscoVentureMember srt:MaximumMember 2019-02-13 2019-02-13 0001574197 fph:SanFranciscoVentureMember us-gaap:CapitalUnitClassAMember 2019-06-30 0001574197 fph:TheSanFranciscoVentureMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-12-31 0001574197 fph:TheSanFranciscoVentureMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-06-30 0001574197 fph:FivePointCommunitiesLPandFLPMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-06-30 0001574197 fph:FivePointCommunitiesLPandFLPMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-12-31 0001574197 fph:TheSanFranciscoVentureMember 2019-01-01 2019-06-30 0001574197 srt:AffiliatedEntityMember 2018-12-31 0001574197 srt:AffiliatedEntityMember 2019-06-30 0001574197 us-gaap:UnsecuredDebtMember 2019-06-30 0001574197 fph:UnsecuredSeniorNotesDueNovember152025Member us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2019-07-31 0001574197 fph:UnsecuredSeniorNotesDueNovember152025Member us-gaap:UnsecuredDebtMember us-gaap:SubsequentEventMember 2019-07-31 0001574197 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2019-05-31 0001574197 fph:SeniorNotesDue20257.875Member us-gaap:SeniorNotesMember 2019-06-30 0001574197 fph:MacerichNoteMember us-gaap:NotesPayableOtherPayablesMember 2019-01-01 2019-06-30 0001574197 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-05-01 2019-05-31 0001574197 srt:MinimumMember us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-05-01 2019-05-31 0001574197 fph:SeniorNotesDue20257.875Member us-gaap:SeniorNotesMember 2018-12-31 0001574197 fph:MacerichNoteMember us-gaap:NotesPayableOtherPayablesMember 2019-06-30 0001574197 fph:MacerichNoteMember us-gaap:NotesPayableOtherPayablesMember 2018-12-31 0001574197 srt:MaximumMember 2019-06-30 0001574197 srt:MinimumMember 2019-06-30 0001574197 fph:TheSanFranciscoVentureMember 2019-06-30 0001574197 us-gaap:LetterOfCreditMember 2019-06-30 0001574197 us-gaap:LetterOfCreditMember 2018-12-31 0001574197 fph:OneTenantLeaseMember 2019-06-30 0001574197 fph:SubsidiaryLeaseMember 2019-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GreatParkVentureMember 2018-12-31 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GatewayCommercialVentureLLCAMember 2018-12-31 0001574197 us-gaap:OperatingSegmentsMember fph:CommercialLeasingMember 2018-12-31 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GatewayCommercialVentureLLCAMember 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:CommercialLeasingMember 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:SanFranciscoMember 2018-12-31 0001574197 us-gaap:OperatingSegmentsMember 2018-12-31 0001574197 us-gaap:CorporateNonSegmentMember 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:NewhallMember 2019-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GreatParkVentureMember 2019-06-30 0001574197 us-gaap:CorporateNonSegmentMember 2018-12-31 0001574197 us-gaap:IntersegmentEliminationMember 2018-12-31 0001574197 us-gaap:OperatingSegmentsMember fph:GreatParkVentureMember 2018-12-31 0001574197 us-gaap:OperatingSegmentsMember fph:NewhallMember 2018-12-31 0001574197 us-gaap:IntersegmentEliminationMember 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:SanFranciscoMember 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:GreatParkVentureMember 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember 2019-06-30 0001574197 us-gaap:CorporateNonSegmentMember 2018-04-01 2018-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember 2019-01-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember 2018-04-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember 2019-01-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:GreatParkVentureMember 2018-01-01 2018-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GatewayCommercialVentureLLCAMember 2019-04-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:NewhallMember 2018-01-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:NewhallMember 2019-01-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:SanFranciscoMember 2019-04-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:GreatParkVentureMember 2019-01-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:CommercialLeasingMember 2018-04-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:CommercialLeasingMember 2019-01-01 2019-06-30 0001574197 us-gaap:CorporateNonSegmentMember 2019-04-01 2019-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GreatParkVentureMember 2019-04-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember 2018-01-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:SanFranciscoMember 2018-04-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:SanFranciscoMember 2019-01-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:SanFranciscoMember 2018-01-01 2018-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GatewayCommercialVentureLLCAMember 2019-01-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:GreatParkVentureMember 2018-04-01 2018-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GreatParkVentureMember 2018-04-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:NewhallMember 2018-04-01 2018-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember 2019-04-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:CommercialLeasingMember 2018-01-01 2018-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember 2018-04-01 2018-06-30 0001574197 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:CommercialLeasingMember 2019-04-01 2019-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GatewayCommercialVentureLLCAMember 2018-01-01 2018-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GatewayCommercialVentureLLCAMember 2018-04-01 2018-06-30 0001574197 fph:GatewayCommercialVentureLLCAMember 2018-01-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:NewhallMember 2019-04-01 2019-06-30 0001574197 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GreatParkVentureMember 2018-01-01 2018-06-30 0001574197 us-gaap:OperatingSegmentsMember fph:GreatParkVentureMember 2019-04-01 2019-06-30 0001574197 us-gaap:MaterialReconcilingItemsMember fph:GreatParkVentureMember 2019-01-01 2019-06-30 0001574197 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-06-30 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2019-06-30 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-01-31 0001574197 us-gaap:RestrictedStockMember 2019-01-01 2019-01-31 0001574197 fph:IncentiveAwardsMember 2019-01-01 2019-06-30 0001574197 us-gaap:FairValueInputsLevel3Member fph:ContingentConsiderationMallVentureMember 2018-12-31 0001574197 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0001574197 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001574197 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001574197 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-06-30 0001574197 us-gaap:RestrictedStockMember 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassAMember 2019-04-01 2019-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsMember 2018-01-01 2018-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsWeightedAverageMember 2019-04-01 2019-06-30 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-06-30 0001574197 us-gaap:CommonClassAMember 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassAMember 2018-04-01 2018-06-30 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-06-30 0001574197 us-gaap:CommonClassBMember 2019-04-01 2019-06-30 0001574197 us-gaap:CommonClassBMember 2018-01-01 2018-06-30 0001574197 us-gaap:CommonClassBMember 2018-04-01 2018-06-30 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2019-04-01 2019-06-30 0001574197 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsWeightedAverageMember 2018-01-01 2018-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsMember 2019-04-01 2019-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsWeightedAverageMember 2019-01-01 2019-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsMember 2019-01-01 2019-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsWeightedAverageMember 2018-04-01 2018-06-30 0001574197 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0001574197 us-gaap:CommonClassBMember 2019-01-01 2019-06-30 0001574197 us-gaap:RestrictedStockMember 2018-04-01 2018-06-30 0001574197 us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0001574197 fph:PerformanceRestrictedStockUnitsRSUsMember 2018-04-01 2018-06-30 0001574197 us-gaap:CommonClassAMember 2019-01-01 2019-06-30 0001574197 us-gaap:AociAttributableToNoncontrollingInterestMember 2019-01-01 2019-06-30 0001574197 us-gaap:AociAttributableToNoncontrollingInterestMember 2018-01-01 2018-12-31 0001574197 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-06-30 0001574197 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-01-01 2018-06-30 fph:individual utreg:sqft fph:member fph:vote fph:class iso4217:USD xbrli:shares fph:building xbrli:shares iso4217:USD xbrli:pure utreg:acre

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 001-38088
Five Point Holdings, LLC
(Exact name of registrant as specified in its charter)
Delaware
 
27-0599397
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
15131 Alton Parkway
4th Floor
Irvine
California
 
92618
(Address of Principal Executive Offices)
 
(Zip code)
(949) 349-1000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address, and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A common shares
FPH
New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of July 31, 2019, 68,746,555 Class A common shares and 79,275,234 Class B common shares were outstanding.
 



FIVE POINT HOLDINGS, LLC

TABLE OF CONTENTS

FORM 10-Q

 
 
Page
 
PART I. FINANCIAL INFORMATION
 
ITEM 1.
 
 
 
 
 
 
ITEM 2.
ITEM 3.
ITEM 4.
 
 
 
 
PART II. OTHER INFORMATION
 
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.
 



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. This report may contain forward-looking statements regarding: our expectations of our future revenues, costs and financial performance; future demographics and market conditions in the areas where our communities are located; the outcome of pending litigation and its effect on our operations; the timing of our development activities; and the timing of future real estate purchases or sales.
We caution you that any forward-looking statements presented in this report are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. We believe these risks and uncertainties include, but are not limited to, the following:
risks associated with the real estate industry;
downturns in economic conditions or demographic changes at the national, regional or local levels, particularly in the areas where our properties are located;
uncertainty and risks related to zoning and land use laws and regulations, including environmental planning and protection laws;
risks associated with development and construction projects;
adverse developments in the economic, political, competitive or regulatory climate of California;
loss of key personnel;
uncertainties and risks related to adverse weather conditions, natural disasters and climate change;
fluctuations in interest rates;
the availability of cash for distribution and debt service and exposure to risk of default under debt obligations;
exposure to liability relating to environmental and health and safety matters;
exposure to litigation or other claims;
insufficient amounts of insurance or exposure to events that are either uninsured or underinsured;
intense competition in the real estate market and our ability to sell properties at desirable prices;
fluctuations in real estate values;
changes in property taxes;
risks associated with our trademarks, trade names and service marks;
conflicts of interest with our directors;
general volatility of the capital and credit markets and the price of our Class A common shares; and
risks associated with public or private financing or the unavailability thereof.
Please see Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018 for a more detailed discussion of these and other risks.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date of this report. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law.


Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1.    Financial Statements

FIVE POINT HOLDINGS, LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except shares)
(Unaudited)

 
June 30, 2019
 
December 31, 2018
ASSETS
 
 
 
INVENTORIES
$
1,810,697

 
$
1,696,084

INVESTMENT IN UNCONSOLIDATED ENTITIES
537,125

 
532,899

PROPERTIES AND EQUIPMENT, NET
32,265

 
31,677

INTANGIBLE ASSET, NET—RELATED PARTY
87,107

 
95,917

CASH AND CASH EQUIVALENTS
292,661

 
495,694

RESTRICTED CASH AND CERTIFICATES OF DEPOSIT
1,739

 
1,403

RELATED PARTY ASSETS
90,832

 
61,039

OTHER ASSETS
24,619

 
9,179

TOTAL
$
2,877,045

 
$
2,923,892

 
 
 
 
LIABILITIES AND CAPITAL
 
 
 
LIABILITIES:
 
 
 
Notes payable, net
$
492,469

 
$
557,004

Accounts payable and other liabilities
163,870

 
161,139

Related party liabilities
128,850

 
178,540

Deferred income tax liability, net
10,449

 
9,183

Payable pursuant to tax receivable agreement
172,633

 
169,509

Total liabilities
968,271

 
1,075,375

 
 
 
 
COMMITMENTS AND CONTINGENT LIABILITIES (Note 12)

 

REDEEMABLE NONCONTROLLING INTEREST
25,000

 

CAPITAL:
 
 
 
Class A common shares; No par value; Issued and outstanding: 2019—68,746,555 shares; 2018—66,810,980 shares
 
 
 
Class B common shares; No par value; Issued and outstanding: 2019—79,275,234 shares; 2018—78,838,736 shares
 
 
 
Contributed capital
564,199

 
556,521

Retained earnings
47,107

 
33,811

Accumulated other comprehensive loss
(3,298
)
 
(3,306
)
Total members’ capital
608,008

 
587,026

Noncontrolling interests
1,275,766

 
1,261,491

Total capital
1,883,774

 
1,848,517

TOTAL
$
2,877,045

 
$
2,923,892


See accompanying notes to unaudited condensed consolidated financial statements.


1

Table of Contents

FIVE POINT HOLDINGS, LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
(Unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
REVENUES:
 
 
 
 
 
 
 
Land sales
$
10

 
$
3

 
$
65

 
$
52

Land sales—related party
236

 
221

 
466

 
442

Management services—related party
11,168

 
11,440

 
22,231

 
23,207

Operating properties
973

 
1,426

 
2,698

 
4,356

Total revenues
12,387

 
13,090

 
25,460

 
28,057

COSTS AND EXPENSES:
 
 
 
 
 
 
 
Land sales

 
52

 

 
90

Management services
7,479

 
6,763

 
15,095

 
13,852

Operating properties
1,199

 
1,107

 
3,100

 
3,497

Selling, general, and administrative
25,993

 
29,015

 
51,766

 
57,611

Total costs and expenses
34,671

 
36,937

 
69,961

 
75,050

OTHER INCOME:
 
 
 
 
 
 
 
Adjustment to payable pursuant to tax receivable agreement

 

 

 
1,928

Interest income
2,316

 
2,910

 
4,770

 
5,657

Gain on settlement of contingent consideration—related party

 

 
64,870

 

Miscellaneous
9

 
631

 
19

 
8,412

Total other income
2,325

 
3,541

 
69,659

 
15,997

EQUITY IN (LOSS) EARNINGS FROM UNCONSOLIDATED ENTITIES
(2,669
)
 
9,003

 
6,213

 
5,396

(LOSS) INCOME BEFORE INCOME TAX (PROVISION) BENEFIT
(22,628
)
 
(11,303
)
 
31,371

 
(25,600
)
INCOME TAX (PROVISION) BENEFIT

 

 
(1,266
)
 

NET (LOSS) INCOME
(22,628
)
 
(11,303
)
 
30,105

 
(25,600
)
LESS NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(12,116
)
 
(6,143
)
 
16,809

 
(15,208
)
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY
$
(10,512
)
 
$
(5,160
)
 
$
13,296

 
$
(10,392
)
 
 
 
 
 
 
 
 
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE
 
 
 
 
 
 
 
Basic
$
(0.16
)
 
$
(0.08
)
 
$
0.19

 
$
(0.16
)
Diluted
$
(0.16
)
 
$
(0.08
)
 
$
0.18

 
$
(0.18
)
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING
 
 
 
 
 
 
 
Basic
66,256,961

 
65,076,395

 
66,234,066

 
64,226,628

Diluted
66,256,961

 
65,076,395

 
145,403,189

 
144,853,566

NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE
 
 
 
 
 
 
 
Basic and diluted
$
(0.00
)
 
$
(0.00
)
 
$
0.00

 
$
(0.00
)
WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING
 
 
 
 
 
 
 
Basic
79,275,234

 
79,794,047

 
79,169,124

 
80,602,759

Diluted
79,275,234

 
79,794,047

 
79,275,824

 
80,602,759

See accompanying notes to unaudited condensed consolidated financial statements.


2

Table of Contents

FIVE POINT HOLDINGS, LLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
(Unaudited)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
NET (LOSS) INCOME
$
(22,628
)
 
$
(11,303
)
 
$
30,105

 
$
(25,600
)
OTHER COMPREHENSIVE INCOME:
 
 
 
 
 
 
 
Reclassification of actuarial loss on defined benefit pension plan included in net (loss) income
35

 
21

 
70

 
43

Other comprehensive income before taxes
35

 
21

 
70

 
43

INCOME TAX PROVISION RELATED TO OTHER COMPREHENSIVE INCOME

 

 

 

OTHER COMPREHENSIVE INCOME—Net of tax
35

 
21

 
70

 
43

COMPREHENSIVE (LOSS) INCOME
(22,593
)
 
(11,282
)
 
30,175

 
(25,557
)
LESS COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(12,103
)
 
(6,135
)
 
16,835

 
(15,191
)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY
$
(10,490
)
 
$
(5,147
)
 
$
13,340

 
$
(10,366
)

See accompanying notes to unaudited condensed consolidated financial statements.



3

Table of Contents

FIVE POINT HOLDINGS, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL
(In thousands, except share amounts)
(Unaudited)

 
Class A
Common
Shares
 
Class B
Common
Shares
 
Contributed
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total
Members’
Capital
 
Noncontrolling
Interests
 
Total
Capital
BALANCE - March 31, 2019
68,746,555

 
79,275,234

 
$
562,185

 
$
57,619

 
$
(3,320
)
 
$
616,484

 
$
1,287,869

 
$
1,904,353

Net loss

 

 

 
(10,512
)
 

 
(10,512
)
 
(12,116
)
 
(22,628
)
Share-based compensation expense

 

 
3,442

 

 

 
3,442

 

 
3,442

Other comprehensive income—net of tax of $0

 

 

 

 
22

 
22

 
13

 
35

Adjustment to liability recognized under tax receivable agreement—net of tax of $0

 

 
(1,428
)
 

 

 
(1,428
)
 

 
(1,428
)
BALANCE - June 30, 2019
68,746,555

 
79,275,234

 
$
564,199

 
$
47,107

 
$
(3,298
)
 
$
608,008

 
$
1,275,766

 
$
1,883,774

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE - March 31, 2018
64,268,027

 
81,418,003

 
$
535,900

 
$
63,293

 
$
(2,474
)
 
$
596,719

 
$
1,315,220

 
$
1,911,939

Net loss

 

 

 
(5,160
)
 

 
(5,160
)
 
(6,143
)
 
(11,303
)
Share-based compensation expense

 

 
2,742

 

 

 
2,742

 

 
2,742

Issuance of share-based compensation awards, net of forfeitures
(3,371
)
 

 

 

 

 

 

 

Other comprehensive income—net of tax of $0

 

 

 

 
13

 
13

 
8

 
21

Redemption of noncontrolling interests
2,273,196

 
(2,272,516
)
 
25,948

 

 
(89
)
 
25,859

 
(25,859
)
 

Adjustment to liability recognized under tax receivable agreement—net of tax of $0

 

 
(15,172
)
 

 

 
(15,172
)
 

 
(15,172
)
Adjustment of noncontrolling interest in the Operating Company

 

 
(15
)
 

 

 
(15
)
 
15

 

BALANCE - June 30, 2018
66,537,852

 
79,145,487

 
$
549,403

 
$
58,133

 
$
(2,550
)
 
$
604,986

 
$
1,283,241

 
$
1,888,227


See accompanying notes to unaudited condensed consolidated financial statements.





4

Table of Contents

FIVE POINT HOLDINGS, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL
(In thousands, except share amounts)
(Unaudited)

 
Class A
Common
Shares
 
Class B
Common
Shares
 
Contributed
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Loss
 
Total
Members’
Capital
 
Noncontrolling
Interests
 
Total
Capital
BALANCE - December 31, 2018
66,810,980

 
78,838,736

 
$
556,521

 
$
33,811

 
$
(3,306
)
 
$
587,026

 
$
1,261,491

 
$
1,848,517

Net income

 

 

 
13,296

 

 
13,296

 
16,809

 
30,105

Share-based compensation expense

 

 
6,758

 

 

 
6,758

 

 
6,758

Reacquisition of share-based compensation awards for tax-withholding purposes
(296,392
)
 

 
(4,099
)
 

 

 
(4,099
)
 

 
(4,099
)
Settlement of restricted share units for Class A common shares
337,799

 

 

 

 

 

 

 

Issuance of share-based compensation awards, net of forfeitures
1,894,168

 

 

 

 

 

 

 

Other comprehensive income—net of tax of $0

 

 

 

 
44

 
44

 
26

 
70

Contribution from noncontrolling interest and related sale of Class B common shares

 
436,498

 
3

 

 

 
3

 
5,544

 
5,547

Adjustment to liability recognized under tax receivable agreement—net of tax of $0

 

 
(3,124
)
 

 

 
(3,124
)
 

 
(3,124
)
Adjustment of noncontrolling interest in the Operating Company

 

 
8,140

 

 
(36
)
 
8,104

 
(8,104
)
 

BALANCE - June 30, 2019
68,746,555

 
79,275,234

 
$
564,199

 
$
47,107

 
$
(3,298
)
 
$
608,008

 
$
1,275,766

 
$
1,883,774

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE - December 31, 2017
62,314,850

 
81,463,433

 
$
530,015

 
$
57,841

 
$
(2,455
)
 
$
585,401

 
$
1,320,208

 
$
1,905,609

Adoption of accounting standards

 

 

 
10,684

 

 
10,684

 
13,961

 
24,645

Net loss

 

 

 
(10,392
)
 

 
(10,392
)
 
(15,208
)
 
(25,600
)
Share-based compensation expense

 

 
6,141

 

 

 
6,141

 

 
6,141

Reacquisition of share-based compensation awards for tax-withholding purposes
(68,886
)
 

 
(5,131
)
 

 

 
(5,131
)
 

 
(5,131
)
Settlement of restricted share units for Class A common shares
319,783

 

 

 

 

 

 

 

Issuance of share-based compensation awards, net of forfeitures
1,653,467

 

 

 

 

 

 

 

Other comprehensive income—net of tax of $0

 

 

 

 
26

 
26

 
17

 
43

Redemption of noncontrolling interests
2,318,638

 
(2,317,946
)
 
26,765

 

 
(90
)
 
26,675

 
(26,675
)
 

Adjustment to liability recognized under tax receivable agreement—net of tax of $0

 

 
(17,480
)
 

 

 
(17,480
)
 

 
(17,480
)
Adjustment of noncontrolling interest in the Operating Company

 

 
9,093

 

 
(31
)
 
9,062

 
(9,062
)
 

BALANCE - June 30, 2018
66,537,852

 
79,145,487

 
$
549,403

 
$
58,133

 
$
(2,550
)
 
$
604,986

 
$
1,283,241

 
$
1,888,227


See accompanying notes to unaudited condensed consolidated financial statements.



5

Table of Contents

FIVE POINT HOLDINGS, LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Six Months Ended
June 30,
 
2019
 
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income (loss)
$
30,105

 
$
(25,600
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
 
 
 
Equity in earnings from unconsolidated entities
(6,213
)
 
(5,396
)
Deferred income taxes
1,266

 

Depreciation and amortization
11,136

 
7,812

Noncash adjustment of payable pursuant to tax receivable agreement

 
(1,928
)
Gain on settlement of contingent consideration—related party
(64,870
)
 

Gain on sale of golf course operating properties

 
(6,700
)
Gain on insurance proceeds for damaged property

 
(1,550
)
Share-based compensation
6,758

 
6,141

Changes in operating assets and liabilities:
 
 
 
Inventories
(113,838
)
 
(129,388
)
Related party assets
(11,679
)
 
(10,165
)
Other assets
(5,135
)
 
(960
)
Accounts payable and other liabilities
(8,624
)
 
2,482

Related party liabilities
(3,631
)
 
306

Net cash used in operating activities
(164,725
)
 
(164,946
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Distribution from Gateway Commercial Venture
1,987

 

Purchase of indirect Legacy Interest in Great Park Venture—related party

 
(1,762
)
Proceeds from sale of golf course operating property

 
5,685

Proceeds from insurance on damaged property

 
1,601

Purchase of properties and equipment
(1,277
)
 
(352
)
Net cash provided by investing activities
710

 
5,172

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Principal payment on settlement note

 
(5,000
)
Principal payment on Macerich note
(65,130
)
 

Reacquisition of share-based compensation awards for tax-withholding purposes
(4,099
)
 
(5,131
)
Proceeds from issuance of Class B common shares
3

 

Contribution from noncontrolling interest
5,544

 

Proceeds from issuance of redeemable noncontrolling interest
25,000

 

Net cash used in financing activities
(38,682
)
 
(10,131
)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
(202,697
)
 
(169,905
)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period
497,097

 
849,945

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period
$
294,400

 
$
680,040

SUPPLEMENTAL CASH FLOW INFORMATION (Note 13)
See accompanying notes to unaudited condensed consolidated financial statements.


6

Table of Contents

FIVE POINT HOLDINGS, LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1.    BUSINESS AND ORGANIZATION
Five Point Holdings, LLC, a Delaware limited liability company (the “Holding Company” and, together with its consolidated subsidiaries, the “Company”), is an owner and developer of mixed-use, master-planned communities in California. The Holding Company owns all of its assets and conducts all of its operations through Five Point Operating Company, LP, a Delaware limited partnership (the “Operating Company”), and its subsidiaries.
The Company has two classes of shares outstanding: Class A common shares and Class B common shares. Holders of Class A common shares and holders of Class B common shares are entitled to one vote for each share held of record on all matters submitted to a vote of shareholders, and are both entitled to receive distributions at the same time. However, the distributions paid to holders of our Class B common shares are in an amount per share equal to 0.0003 multiplied by the amount paid per Class A common share.
The diagram below presents a simplified depiction of the Company’s current organizational structure as of June 30, 2019:
orgcharta02.jpg
(1) A wholly owned subsidiary of the Holding Company serves as the sole managing general partner of the Operating Company. As of June 30, 2019, the Company owned approximately 62.4% of the outstanding Class A Common Units of the Operating Company. After a one year holding period, a holder of Class A Common Units of the Operating Company can exchange the units for, at the Company’s option, either Class A common shares of the Holding Company, on a one-for-one basis, or cash equal to the fair market value of such shares. Assuming the exchange of all outstanding Class A Common Units of the Operating Company and all outstanding Class A units of The Shipyard Communities, LLC, a Delaware limited liability company (the “San Francisco Venture”) (see (2) below), that are not held by the Company, based on the closing price of the Company’s Class A common shares on July 31, 2019 ($7.81), the equity market capitalization of the Company was approximately $1.2 billion.


7

Table of Contents

(2) The Operating Company owns all of the outstanding Class B units of the San Francisco Venture, the entity developing the Candlestick and The San Francisco Shipyard communities. The Class A units of the San Francisco Venture, which the Operating Company does not own, are intended to be economically equivalent to Class A Common Units of the Operating Company. As the holder of all outstanding Class B units, the Operating Company is entitled to receive 99% of available cash from the San Francisco Venture after the holders of Class A units in the San Francisco Venture have received distributions equivalent to the distributions, if any, paid on Class A Common Units of the Operating Company. Class A units of the San Francisco Venture can be exchanged, on a one-for-one basis, for Class A Common Units of the Operating Company (See Note 5).
(3) Together, the Operating Company, Five Point Communities, LP, a Delaware limited partnership (“FP LP”), and Five Point Communities Management, Inc., a Delaware corporation (“FP Inc.” and together with FP LP, the “Management Company”) own 100% of Five Point Land, LLC, a Delaware limited liability company (“FPL”), the entity developing Valencia (formerly known as Newhall Ranch), a master-planned community located in northern Los Angeles County, California. The Operating Company has a controlling interest in the Management Company.
(4) Interests in Heritage Fields LLC, a Delaware limited liability company (the “Great Park Venture”), are either “Percentage Interests” or “Legacy Interests.” Holders of the Legacy Interests are entitled to receive priority distributions in an amount up to $565.0 million, of which $355.0 million had been distributed as of July 31, 2019. The Company owns a 37.5% Percentage Interest in the Great Park Venture and serves as its administrative member. However, management of the Great Park Venture is vested in the four voting members, who have a total of five votes. Major decisions generally require the approval of at least 75% of the votes of the voting members. The Company has two votes, and the other three voting members each have one vote, so the Company is unable to approve any major decision without the consent or approval of at least two of the other voting members. The Company does not include the Great Park Venture as a consolidated subsidiary, but rather as an equity method investee in its consolidated financial statements.
(5) The Company owns a 75% interest in Five Point Office Venture Holdings I, LLC, a Delaware limited liability company (the “Gateway Commercial Venture”). The Gateway Commercial Venture owns approximately 73 acres of commercial land in the Great Park Neighborhoods, on which four buildings have been newly constructed with an aggregate of approximately one million square feet of research and development and office space (the “Five Point Gateway Campus”). The Company manages the Gateway Commercial Venture, however, the manager’s authority is limited. Major decisions by the Gateway Commercial Venture generally require unanimous approval by an executive committee composed of two people designated by the Company and two people designated by another investor. Some decisions require approval by all of the members of the Gateway Commercial Venture. The Company does not include the Gateway Commercial Venture as a consolidated subsidiary, but rather as an equity method investee in its consolidated financial statements.

2.    BASIS OF PRESENTATION
Principles of consolidation—The accompanying condensed consolidated financial statements include the accounts of the Holding Company and the accounts of all subsidiaries in which the Holding Company has a controlling interest and the consolidated accounts of variable interest entities (“VIEs”) in which the Holding Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.
Unaudited interim financial information—The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments (including normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the full year.


8

Table of Contents

Use of estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates.
Miscellaneous other incomeMiscellaneous other income consisted of the following (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Gain on sale of golf club operating property
$

 
$

 
$

 
$
6,700

Gain on insurance claims

 
550

 

 
1,550

Net periodic pension benefit
9

 
81

 
19

 
162

Total miscellaneous other income
$
9

 
$
631

 
$
19

 
$
8,412


In January 2018, the Tournament Players Club at Valencia Golf Course was sold for net cash proceeds of $5.7 million, and the buyer assumed certain liabilities, including certain club membership related liabilities. The Company recognized a gain of $6.7 million as a result of the sale and such gain is included in miscellaneous other income in the condensed consolidated statement of operations for the six months ended June 30, 2018.
Recently issued accounting pronouncements—In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”) which amends the guidance on the impairment of financial instruments, including most debt instruments, trade receivables, contract assets, and loans. ASU No. 2016-13 adds to U.S. GAAP an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses for instruments measured at amortized cost, resulting in a net presentation of the amount expected to be collected on the financial asset. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU No. 2016-13 on its consolidated financial statements.
Recently adopted accounting pronouncements—In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU No. 2018-07”) which simplifies the accounting of share-based payments granted to nonemployees for goods and services. Under ASU No. 2018-07, most of the guidance on such payments to nonemployees is aligned with the requirements for share-based payments granted to employees, including the determination of the measurement date. The Company adopted ASU No. 2018-07 on January 1, 2019 with no material impact on its consolidated financial statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). This ASU generally requires that lessees recognize right-of-use ("ROU") assets and lease liabilities on the balance sheet for operating and financing leases and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The FASB has issued multiple clarifications and updates since ASU No. 2016-02 that include, but are not limited to, the ability to elect practical expedients upon transition.
The Company adopted ASU No. 2016-02 and the related ASUs that formed ASC Topic 842, Leases, on January 1, 2019 using the modified retrospective approach. Consequently, comparative prior periods presented in financial statements after adoption will continue to be in accordance with historical U.S. GAAP (Topic 840, Leases). Upon transition, the Company elected the package of practical expedients, whereby the Company did not reassess whether existing contracts contain leases, the lease classification of existing leases and initial direct costs associated with those leases.


9

Table of Contents

The impact of adopting the new guidance primarily relates to (i) the recognition of ROU assets and lease liabilities for operating leases, and (ii) the requirement to provide more robust disclosure on the nature of the Company’s leases, cash flow impacts arising from leases and significant assumptions or judgments used by management to determine whether a contract contains a lease as well as a determination of the discount rate for a lease. The adoption of ASU No. 2016-02 did not have a material impact on the Company's consolidated statement of operations and statement of cash flows.
The cumulative effect of the changes made to the Company’s consolidated January 1, 2019 balance sheet from the adoption of the new lease guidance was as follows (in thousands):
 
Balance at December 31, 2018
 
Adjustments due to ASU No. 2016-02
 
Balance at January 1, 2019
ASSETS
 
 
 
 
 
Related party assets
$
61,039

 
$
18,811

 
$
79,850

Other assets
9,179

 
11,425

 
20,604

LIABILITIES
 
 
 
 
 
Accounts payable and other liabilities
161,139

 
11,425

 
172,564

Related party liabilities
178,540

 
18,811

 
197,351




10

Table of Contents

3.    REVENUES
The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (see Note 14) (in thousands):
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
 
Valencia
 
San Francisco
 
Great Park
 
Commercial
 
Total
 
Valencia
 
San Francisco
 
Great Park
 
Commercial
 
Total
Land sales
$
24

 
$
222

 
$

 
$

 
$
246

 
$
88

 
$
443

 
$

 
$

 
$
531

Management services

 
573

 
10,437

 
158

 
11,168

 

 
1,271

 
20,833

 
127

 
22,231

Operating properties
455

 
177

 

 

 
632

 
1,708

 
351

 

 

 
2,059

 
479

 
972