David Lundgren's questions to Five Point Holdings LLC (FPH) leadership • Q2 2025
Question
Private investor David Lundgren questioned the company's use of cash, asking about potential share buybacks and why management believes the stock trades significantly below book value, suggesting the complex corporate structure and the new Hearthstone deal could be contributing factors.
Answer
VP, CFO & Treasurer Kim Tobler explained that the company's current senior note indenture prohibits share buybacks but that it is a consideration for a future refinancing. Mr. Tobler also stated that the Hearthstone acquisition will be consolidated and will not add to structural complexity. He acknowledged the valuation concern, noted the tax advantages of the current structure, and expressed confidence in the stock's future performance.