Five Point Holdings LLC (FPH) Reports Q3 2023 Earnings: Revenue of $65. ...
Five Point Holdings LLC (NYSE:FPH) reports Q3 2023 consolidated revenues of $65.9 million and consolidated net income of $14.2 million.
Valencia segment sold 146 homesites on approximately 26 acres of land, recognizing revenue of $60.6 million.
Company's cash and cash equivalents stood at $218.3 million as of September 30, 2023.
Debt to total capitalization ratio of 24.5% and liquidity of $343.3 million as of September 30, 2023.
Five Point Holdings LLC (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, released its third quarter 2023 earnings on October 19, 2023. The company reported consolidated revenues of $65.9 million and consolidated net income of $14.2 million.
Financial Highlights
The Valencia segment of the company sold 146 homesites on approximately 26 acres of land, recognizing revenue of $60.6 million. This was a significant contributor to the consolidated revenues. The company's cash and cash equivalents stood at $218.3 million as of September 30, 2023. The debt to total capitalization ratio was reported at 24.5% and the company had liquidity of $343.3 million as of the same date.
CEO Commentary
Dan Hedigan, Chief Executive Officer, said, In the third quarter, we built on our positive momentum from the first half of the year, with earnings for the third quarter of $14.2 million and an increase in our cash position of $25.1 million, giving us total cash and cash equivalents of $218.3 million. Notwithstanding the headwinds created by the interest rate environment, we are seeing consistent home sales in our communities and continued interest from home builders in our land. Our results for the quarter reflect our sustained focus on our three main priorities: generating revenue, right-sizing our SG&A, and limiting our capital spend. Given our continued success in cash generation and profitability, I am pleased to announce that today we closed on an amendment to our revolving credit facility, which extends the term through April 2026.
Financial Statements Summary
The company's revenues for the three months ended September 30, 2023, were primarily generated from land sales at the Valencia segment. The fixed base purchase price of $60.6 million was paid at closing. Selling, general, and administrative expenses were $11.9 million for the same period. Consolidated net income for the quarter was $14.2 million. Net income attributable to noncontrolling interests totaled $7.6 million, resulting in net income attributable to the company of $6.6 million.
Outlook
Despite the challenges posed by the interest rate environment, Five Point Holdings LLC (NYSE:FPH) remains optimistic about its performance. The company continues to see consistent home sales in its communities and sustained interest from home builders in its land. With its focus on generating revenue, right-sizing its SG&A, and limiting capital spend, the company is well-positioned for continued success.
This article first appeared on GuruFocus.
