Executive Summary

Q3 2025 delivered strong profitability driven by Great Park Venture lot sales: consolidated net income was $55.7M, with net income attributable to the Company at $21.1M and diluted EPS of $0.28; liquidity stood at $476.1M ($351.1M cash, $125.0M revolver availability) .
Capital structure improved meaningfully: FPH issued $450.0M of new 8.000% Senior Notes due 2030, fully repaid $523.5M 10.500% notes due 2028, upsized its revolver to $217.5M (maturity July 2029), and expects over $20M/year cash flow savings; ratings were upgraded/affirmed by Moody’s (B2), S&P (B+/B), and initiated by Fitch (BB-/B) .
Guidance tone shifted: management now expects FY 2025 consolidated net income “in line” with 2024 (≈$176.3M), down from “close to $200M” in Q1; Valencia residential lot sales were deferred to 2026, while Great Park continues robust activity with price participation structures .
Key operational drivers: Great Park sold 326 homesites ($257.7M base purchase price) and builders sold 187 homes; Valencia builder sales were 50; Great Park Venture net income was $201.6M and distributed $216.4M of which FPH received $81.1M .
Potential stock catalysts: improved capital flexibility (dividends/buybacks now permitted under new covenant package), recurring fee growth from Hearthstone as AUM scales (~$3B, with active discussions for $300M+ new capital), and continued Great Park activity with price participation upside .

What Went Well and What Went Wrong

What Went Well

Great Park Venture performance: 326 homesites sold for $257.7M base purchase price; venture net income of $201.6M drove $70.1M equity in earnings to FPH and $81.1M distributions to FPH .
Balance sheet and credit actions: refinancing to 8.000% notes due 2030 and upsized revolver to $217.5M; expected cash flow savings >$20M/year and ratings support (Moody’s B2; S&P B+/B; Fitch BB-/B) .
Strategic platform expansion: closed acquisition of 75% interest in Hearthstone Residential Holdings for $57.6M to supplement recurring fee-based revenue; Hearthstone AUM ~ $3B and growing, with $300M of prospective new capital under discussion, potentially over $1B .

Quote: “We continue to expect full-year 2025 consolidated net income to be in line with our 2024 results.” — Dan Hedigan, CEO .

What Went Wrong

Guidance moderation: FY 2025 net income outlook shifted from “close to $200M” in Q1 to “in line with 2024” (~$176.3M) by Q3, reflecting cautious demand and timing of closings .
Valencia pace: residential lot sale activity was deferred; management now expects the next residential lot sales in Valencia in 2026, citing market pacing and pricing optimization .
SG&A step-up: Q3 SG&A was $14.3M vs $11.9M in Q3 2024 (and $15.6M in Q2 2025), reflecting growth investments and overhead while integrating Hearthstone .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025	YoY % (Q3’25 vs Q3’24)	QoQ % (Q3’25 vs Q2’25)	Vs Estimates
Revenue ($USD Millions)	$17.013	$7.473	$13.488	-20.7%	+80.5%	N/A*
Diluted EPS ($USD)	$0.07	$0.05	$0.28	+300.0%	+460.0%	N/A*
Net Income Attributable to the Company ($USD Millions)	$4.756	$3.320	$21.071	+343.1%	+535.0%	N/A*
Net Income Margin %	28.0%*	44.4%*	156.2%*	—	—	N/A*

Notes:

Values with asterisks retrieved from S&P Global.
Wall Street consensus (S&P Global) for Q3 2025 was unavailable; actual revenue recognized was $13.488M [GetEstimates].

Segment Breakdown (Q3 2025)

Segment (Under Management)	Revenue ($USD Thousands)	Key Line Items ($USD Thousands)	Segment PBT ($USD Thousands)
Great Park	Land sales: $273,072; Mgmt svc: $9,432	Land sales cost: $64,883; Mgmt fees (related party): $6,138	$208,352
Valencia	Operating properties: $498; Land sales: $(12)	SG&A: $2,230	$(3,367)
San Francisco	Operating properties: $176	SG&A: $1,156	$(977)
Hearthstone	Mgmt services: $3,394	Mgmt services cost: $2,741	$834
Corporate & Unallocated	—	Loss on debt extinguishment: $(1,824); Interest income: $4,474	$(7,843)
Removal of Unconsolidated Entities	—	Great Park 100% removal for consolidation	$(132,086)
Total Consolidated	Total revenues: $13,488	Total costs & expenses: $21,380; Other income: $2,668; Equity in earnings: $70,137	Income before tax: $64,913

KPIs and Operating Metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Great Park homesites sold (#)	325	82	326
Aggregate base purchase price ($USD Millions)	$278.9	$63.6	$257.7
Great Park builder home sales (#)	233	112	187
Valencia builder home sales (#)	69	47	50
Great Park Venture distributions ($USD Millions)	$300.9	—	$216.4
FPH share of distributions ($USD Millions)	$112.9	—	$81.1
Liquidity ($USD Millions)	$653.3	$581.6	$476.1
Cash & Cash Equivalents ($USD Millions)	$528.3	$456.6	$351.1
Net debt to total capitalization	(0.2)%	3.0%	4.2%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Net Income	FY 2025	“Close to $200M” (Q1 call/press)	“In line with 2024” (~$176.3M) (Q3 press and call)	Lowered
Revolving Credit Facility Capacity	Ongoing	$125.0M (through Q2)	$217.5M; maturity extended to July 2029	Raised/Extended
Senior Notes	Ongoing	$523.5M 10.500% due 2028	$450.0M 8.000% due 2030 (old notes repurchased/redeemed)	Refinanced; >$20M/year cash savings
Capital Returns Covenant	Ongoing	Dividends/buybacks prohibited under prior notes	Now permitted subject to covenants (post-refi)	Flexibility increased
Valencia Residential Lot Sales	2025–2026	Potential 2025 closings (Q1 comments)	Next residential lot sale expected in 2026	Deferred

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Market demand, rates, affordability	Tariff policy, higher mortgage rates; cautious sentiment but CA undersupply supports demand	Resilient buyer/builder demand at Great Park; buyers cautious; undersupply remains supportive	Stable-to-improving if rates ease
Land pricing/structures	Great Park ~$11–12M per acre blended on recent sales	Base price at closing modified to include price participation rights; ~$8.5–$11M per acre	Monetization with upside participation
Hearthstone integration & AUM	Consolidation expected; AUM ~$2.6B; asset-light fee model	AUM ~$3B; discussions for $300M+ new capital (potential >$1B); recurring fees expected	Scaling fee platform
Capital structure actions	Considering refi; negative carry debate; paydown options	Executed refi to 8% notes; revolver upsized; >$20M/year savings; ratings positive; capital returns permitted	De-risked, more flexible
San Francisco development	Engineering; start construction early next year	Begin construction first half of 2026	Timing pushed out
Valencia lot sales	Two new communities marketed; potential late-2025 closings	No residential lot sales expected until 2026	Deferred

Management Commentary

“We delivered another strong quarter, generating consolidated net income of $55.7 million and ending the quarter with total liquidity of $476.1 million.” — Dan Hedigan, CEO .
“With the rate improvement and reduced principal, we are saving over $20 million a year in cash flow.” — Kim Tobler, CFO .
“Hearthstone’s current portfolio spans 16 states and approximately 33 market areas, geographically diversifying the investment base of Hearthstone’s lot option program.” — Mike Alvarado, COO .
“We continue to expect full-year 2025 consolidated net income to be in line with our 2024 results.” — Dan Hedigan, CEO .
“Dividends and stock buybacks are now permitted subject to covenant limitations.” — Kim Tobler, CFO .

Q&A Highlights

Hearthstone economics and stability: Management emphasized disciplined underwriting; near-term segment profitability around ~$1M for two months post-close, with growth expected into 2026 as AUM scales .
Valencia timing: Management does not expect additional residential lot sales in Valencia in 2025; timeline pushed to 2026 to optimize pricing and match demand .
Book value per share: Initial response suggested $8–$10; clarified to ~$15.5 using diluted shares and total capital of ~$2.28B — highlighting complexity of share classes and NCI; discussion underscored investor focus on valuation vs. book .
Temporary equity on balance sheet: Increase tied to Hearthstone’s retained interests and put/call features; expected to amortize over time .
Capital returns policy: Post-refi, dividends/buybacks now permitted (subject to covenants), addressing prior investor questions about capital deployment flexibility .

Estimates Context

S&P Global consensus for Q3 2025 EPS and Revenue was unavailable; as a result, formal beat/miss vs Street cannot be assessed. Actual Q3 2025 revenue recognized was $13.488M (S&P Global recorded actual) [GetEstimates].
Given the absence of consensus, estimate revisions are likely to track the guidance shift from “close to $200M” to “in line with 2024” (~$176.3M) and the deferral of Valencia residential lot sales to 2026 .

Notes: Values retrieved from S&P Global.

Key Takeaways for Investors

Profitability remains anchored in Great Park Venture activity; Q3 delivered $55.7M consolidated net income with $21.1M attributable to FPH and diluted EPS of $0.28, supported by strong lot sales and venture distributions .
Capital structure is significantly improved: 8.000% 2030 notes replace 10.500% 2028 notes; revolver upsized to $217.5M; ratings improved; >$20M/year cash flow savings provide flexibility for growth and potential capital returns .
Hearthstone offers a scalable, fee-based, asset-light earnings stream; AUM ~ $3B with active capital formation discussions; expect increasing contribution in 2026 .
Guidance moderated; base-case FY 2025 net income now aligns with 2024 (~$176.3M), reflecting prudence amid affordability and rate headwinds; monitor Q4 land sale closings and price participation outcomes .
Valencia residential lot sales deferral to 2026 prioritizes price optimization; near-term contribution likely from Great Park and Hearthstone; San Francisco timeline begins first half of 2026 .
Liquidity decreased sequentially ($653.3M → $581.6M → $476.1M) as cash was deployed for strategic actions; net debt to total capitalization increased to 4.2% but remains low vs peers .
Trading implications: Positive near-term sentiment from de-risked balance sheet and covenant flexibility; medium-term thesis hinges on sustained Great Park monetization, Hearthstone fee growth, and execution on regulatory/entitlement pathways in Valencia and SF .

Appendix: Additional Disclosures

Liquidity and capitalization: Total capital was $2.280B; debt to total capitalization 16.5% at Q3; net debt to total capitalization 4.2% (non-GAAP) .
Conference logistics and items: Q3 call held Oct 29; replay details provided .

Five Point Holdings, LLC (FPH)·Q3 2025 Earnings Summary