Five Point Holdings, LLC has recently released its 10-Q report, providing a detailed look at its financial performance and operations. The company, through its subsidiary, Five Point Operating Company, LP, focuses on owning and developing mixed-use and planned communities in Orange County, Los Angeles County, and San Francisco County. It operates in four segments: Valencia, San Francisco, Great Park, and Commercial, and engages in selling residential and commercial land sites, operating and owning commercial properties, and providing development and property management services.
In the first quarter of 2024, Five Point reported consolidated net income of $6.1 million, a significant improvement from a net loss of $9.7 million in the same period of 2023. The company's focus on generating revenue and positive cash flow, controlling selling, general, and administrative costs, and managing capital spend to match near-term revenue opportunities has shown results. Notably, the Great Park Venture closed the sale of 82 homesites on 11.6 acres at the Great Park Neighborhoods in the first quarter of 2024 for an aggregate gross purchase price of $74.6 million, contributing to the company's revenue growth.
Five Point also completed a senior notes exchange transaction in January 2024, exchanging $623.5 million of its existing 7.875% senior notes due November 2025 for $100.0 million in cash and $523.5 million in new 10.500% initial rate senior notes due January 2028. At the end of March 2024, the company had $232.7 million in cash and $125.0 million available under its revolving credit facility, providing total liquidity of $357.7 million.
The company's segment results for the Valencia, San Francisco, Great Park, and Commercial segments reveal that revenues increased by $4.2 million, or 74.3%, to $9.9 million for the three months ended March 31, 2024, compared to $5.7 million for the same period in 2023. The increase in revenues was primarily due to an increase in management services revenue at the Great Park segment during the first quarter of 2024.
Following these announcements, the company's shares moved -1.6%, and are now trading at a price of $3.04. If you want to know more, read the company's complete 10-Q report here.
