Five Point Holdings, LLC Reports Third Quarter 2022 Results

Third Quarter 2022 Highlights

  • Valencia builder sales of 166 homes during the quarter.
  • Great Park Venture closed the sale of 61 homesites generating proceeds of $23.9 million.
  • Great Park builder sales of 82 homes during the quarter.
  • Great Park Venture commenced marketing of commercial land.
  • Consolidated selling, general and administrative costs down 42% from third quarter 2021.
  • Consolidated revenues of $15.4 million; consolidated net loss of $9.5 million.
  • Debt to total capitalization ratio of 25.3% and liquidity of $211.0 million as of September 30, 2022.

Five Point Holdings, LLC (“Five Point” or the “Company”) (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today reported its third quarter 2022 results.

Dan Hedigan, Chief Executive Officer, said, “While the third quarter was a difficult one for our primary residential land sale business, our team performed well, limiting our cash spend and minimizing our loss for the quarter. We are maintaining our focus on managing costs and overhead with our ‘do more with less’ strategy. Although home builder demand for land has been impacted by the Federal Reserve raising interest rates at the most aggressive pace since the early 1980s, there remains a significant shortage of housing in California, and Five Point has some of the best entitled parcels in the state. While home builders are rebalancing their pricing and sales velocity assumptions as they look at their future land needs, we are continuing to work with the home builder community to sell land at market prices, balancing current market conditions with the scarcity of entitled land inventory in our markets. We are also continuing to move forward with our unique commercial land offerings at the Great Park and Valencia.”

Consolidated Results

Liquidity and Capital Resources

As of September 30, 2022, total liquidity of $211.0 million was comprised of cash and cash equivalents totaling $86.4 million and borrowing availability of $124.7 million under our $125.0 million unsecured revolving credit facility. Total capital was $1.8 billion, reflecting $2.9 billion in assets and $1.0 billion in liabilities and redeemable noncontrolling interests.

Results of Operations for the Three Months Ended September 30, 2022

Revenues. Revenues of $15.4 million for the three months ended September 30, 2022 were primarily generated from management services.

Equity in loss from unconsolidated entities. Equity in loss from unconsolidated entities was $4.3 million for the three months ended September 30, 2022. Net loss for the Great Park Venture was $18.3 million. Our share of the net loss from our 37.5% percentage interest, adjusted for basis differences, was $4.5 million. Additionally, we recognized $0.1 million in loss from our 75% interest in the Gateway Commercial Venture and $0.4 million in earnings from our 10% interest in the Valencia Landbank Venture.

Selling, general, and administrative. Selling, general, and administrative expenses were $12.0 million for the three months ended September 30, 2022.

Net loss. Consolidated net loss for the quarter was $9.5 million. Net loss attributable to noncontrolling interests totaled $5.1 million, resulting in net loss attributable to the Company of $4.4 million. Net loss attributable to noncontrolling interests represents the portion of loss allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income allocated to noncontrolling interests in subsequent periods.

Conference Call Information

In conjunction with this release, Five Point will host a conference call on Thursday, October 27, 2022 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Leo Kij, Interim Chief Financial Officer, will host the call. Interested investors and other parties can listen to a live Internet audio webcast of the conference call that will be available on the Five Point website at ir.fivepoint.com. The conference call can also be accessed by dialing (888) 204-4368 (domestic) or (856) 344-9221 (international). A telephonic replay will be available starting approximately two hours after the end of the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 3213669. The telephonic replay will be available until 11:59 p.m. Eastern Time on November 10, 2022.

About Five Point

Five Point, headquartered in Irvine, California, designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space. Five Point’s communities include the Great Park Neighborhoods® in Irvine, Valencia® in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space.

Forward-Looking Statements

This press release 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 press release 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 included in this press release 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. Some of these risks and uncertainties are described in more detail in our filings with the SEC, including our Annual Report on Form 10-K, under the heading “Risk Factors.” 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 hereof. 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.

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

REVENUES:

 

 

 

 

 

 

 

Land sales

$

72

 

 

$

10,000

 

 

$

643

 

 

$

10,087

 

Land sales—related party

 

2,817

 

 

 

17

 

 

 

4,529

 

 

 

73

 

Management services—related party

 

12,108

 

 

 

10,156

 

 

 

18,358

 

 

 

30,242

 

Operating properties

 

419

 

 

 

522

 

 

 

2,165

 

 

 

1,777

 

Total revenues

 

15,416

 

 

 

20,695

 

 

 

25,695

 

 

 

42,179

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

Land sales

 

 

 

 

 

 

 

 

 

 

 

Management services

 

7,488

 

 

 

8,075

 

 

 

12,372

 

 

 

24,700

 

Operating properties

 

1,580

 

 

 

2,095

 

 

 

5,797

 

 

 

5,098

 

Selling, general, and administrative

 

12,030

 

 

 

20,757

 

 

 

41,472

 

 

 

59,513

 

Restructuring

 

 

 

 

 

 

 

19,437

 

 

 

 

Total costs and expenses

 

21,098

 

 

 

30,927

 

 

 

79,078

 

 

 

89,311

 

OTHER INCOME:

 

 

 

 

 

 

 

Interest income

 

307

 

 

 

21

 

 

 

445

 

 

 

74

 

Miscellaneous

 

112

 

 

 

1,516

 

 

 

336

 

 

 

3,833

 

Total other income

 

419

 

 

 

1,537

 

 

 

781

 

 

 

3,907

 

EQUITY IN (LOSS) EARNINGS FROM UNCONSOLIDATED ENTITIES

 

(4,265

)

 

 

485

 

 

 

(4,654

)

 

 

9,048

 

LOSS BEFORE INCOME TAX PROVISION

 

(9,528

)

 

 

(8,210

)

 

 

(57,256

)

 

 

(34,177

)

INCOME TAX PROVISION

 

(3

)

 

 

 

 

 

(16

)

 

 

(5

)

NET LOSS

 

(9,531

)

 

 

(8,210

)

 

 

(57,272

)

 

 

(34,182

)

LESS NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

(5,092

)

 

 

(4,362

)

 

 

(30,592

)

 

 

(18,266

)

NET LOSS ATTRIBUTABLE TO THE COMPANY

$

(4,439

)

 

$

(3,848

)

 

$

(26,680

)

 

$

(15,916

)

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE

 

 

 

 

 

 

 

Basic

$

(0.06

)

 

$

(0.06

)

 

$

(0.39

)

 

$

(0.23

)

Diluted

$

(0.07

)

 

$

(0.06

)

 

$

(0.39

)

 

$

(0.23

)

WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING

 

 

 

 

 

 

 

Basic

 

68,514,843

 

 

 

67,429,394

 

 

 

68,393,923

 

 

 

67,376,746

 

Diluted

 

68,879,642

 

 

 

67,429,394

 

 

 

68,758,722

 

 

 

67,376,746

 

NET LOSS 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 and diluted

 

79,233,544

 

 

 

79,233,544

 

 

 

79,233,544

 

 

 

79,233,544

 

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)

(Unaudited)

 

September 30,

2022

 

December 31,

2021

ASSETS

 

 

 

INVENTORIES

$

2,229,525

 

 

$

2,096,824

 

INVESTMENT IN UNCONSOLIDATED ENTITIES

 

367,486

 

 

 

374,553

 

PROPERTIES AND EQUIPMENT, NET

 

30,558

 

 

 

31,466

 

INTANGIBLE ASSET, NET—RELATED PARTY

 

45,969

 

 

 

51,405

 

CASH AND CASH EQUIVALENTS

 

86,379

 

 

 

265,462

 

RESTRICTED CASH AND CERTIFICATES OF DEPOSIT

 

1,330

 

 

 

1,330

 

RELATED PARTY ASSETS

 

104,887

 

 

 

101,818

 

OTHER ASSETS

 

18,959

 

 

 

20,052

 

TOTAL

$

2,885,093

 

 

$

2,942,910

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

LIABILITIES:

 

 

 

Notes payable, net

$

620,267

 

 

$

619,116

 

Accounts payable and other liabilities

 

107,364

 

 

 

115,374

 

Related party liabilities

 

99,913

 

 

 

95,918

 

Deferred income tax liability, net

 

12,998

 

 

 

12,998

 

Payable pursuant to tax receivable agreement

 

173,068

 

 

 

174,126

 

Total liabilities

 

1,013,610

 

 

 

1,017,532

 

 

 

 

 

REDEEMABLE NONCONTROLLING INTEREST

 

25,000

 

 

 

25,000

 

CAPITAL:

 

 

 

Class A common shares; No par value; Issued and outstanding: September 30, 2022—69,068,354 shares; December 31, 2021—70,107,552 shares

 

 

 

Class B common shares; No par value; Issued and outstanding: September 30, 2022—79,233,544 shares; December 31, 2021—79,233,544 shares

 

 

 

Contributed capital

 

586,954

 

 

 

587,587

 

Retained earnings

 

22,109

 

 

 

48,789

 

Accumulated other comprehensive loss

 

(1,917

)

 

 

(1,952

)

Total members’ capital

 

607,146

 

 

 

634,424

 

Noncontrolling interests

 

1,239,337

 

 

 

1,265,954

 

Total capital

 

1,846,483

 

 

 

1,900,378

 

TOTAL

$

2,885,093

 

 

$

2,942,910

 

FIVE POINT HOLDINGS, LLC

SUPPLEMENTAL DATA

(In thousands)

(Unaudited)

Liquidity

 

September 30, 2022

Cash and cash equivalents

$

86,379

Borrowing capacity (1)

 

124,651

Total liquidity

$

211,030

(1)

As of September 30, 2022, no amounts were drawn on the Company’s $125.0 million revolving credit facility; however, letters of credit of approximately $0.3 million were issued and outstanding under the revolving credit facility, thus reducing the available capacity by the outstanding letters of credit amount.

Debt to Total Capitalization and Net Debt to Total Capitalization

 

September 30, 2022

Debt (1)

$

625,000

 

Total capital

 

1,846,483

 

Total capitalization

$

2,471,483

 

Debt to total capitalization

 

25.3

%

 

 

Debt (1)

$

625,000

 

Less: Cash and cash equivalents

 

86,379

 

Net debt

 

538,621

 

Total capital

 

1,846,483

 

Total net capitalization

$

2,385,104

 

Net debt to total capitalization (2)

 

22.6

%

(1)

For purposes of this calculation, debt is the amount due on the Company’s notes payable before offsetting for capitalized deferred financing costs.

(2)

Net debt to total capitalization is a non-GAAP financial measure defined as net debt (debt less cash and cash equivalents) divided by total net capitalization (net debt plus total capital). The Company believes the ratio of net debt to total capitalization is a relevant and a useful financial measure to investors in understanding the leverage employed in the Company’s operations. However, because net debt to total capitalization is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.

Segment Results

The following table reconciles the results of operations of our segments to our consolidated results for the three and nine months ended September 30, 2022 (in thousands):

 

Three Months Ended September 30, 2022

 

Valencia

 

San

Francisco

 

Great Park

 

Commercial

 

Total

reportable

segments

 

Corporate and

unallocated

 

Total under

management

 

Removal of

unconsolidated

entities(1)

 

Total

consolidated

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

$

72

 

 

$

 

 

$

28,678

 

 

$

 

 

$

28,750

 

 

$

 

 

$

28,750

 

 

$

(28,678

)

 

$

72

 

Land sales—related party

 

2,817

 

 

 

 

 

 

6,517

 

 

 

 

 

 

9,334

 

 

 

 

 

 

9,334

 

 

 

(6,517

)

 

 

2,817

 

Management services—related party(2)

 

 

 

 

 

 

 

12,000

 

 

 

108

 

 

 

12,108

 

 

 

 

 

 

12,108

 

 

 

 

 

 

12,108

 

Operating properties

 

193

 

 

 

226

 

 

 

 

 

 

2,189

 

 

 

2,608

 

 

 

 

 

 

2,608

 

 

 

(2,189

)

 

 

419

 

Total revenues

 

3,082

 

 

 

226

 

 

 

47,195

 

 

 

2,297

 

 

 

52,800

 

 

 

 

 

 

52,800

 

 

 

(37,384

)

 

 

15,416

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

 

 

 

 

 

 

 

15,105

 

 

 

 

 

 

15,105

 

 

 

 

 

 

15,105

 

 

 

(15,105

)

 

 

 

Management services(2)

 

 

 

 

 

 

 

7,488

 

 

 

 

 

 

7,488

 

 

 

 

 

 

7,488

 

 

 

 

 

 

7,488

 

Operating properties

 

1,580

 

 

 

 

 

 

 

 

 

754

 

 

 

2,334

 

 

 

 

 

 

2,334

 

 

 

(754

)

 

 

1,580

 

Selling, general, and administrative

 

2,519

 

 

 

898

 

 

 

3,655

 

 

 

1,076

 

 

 

8,148

 

 

 

8,613

 

 

 

16,761

 

 

 

(4,731

)

 

 

12,030

 

Management fees—related party

 

 

 

 

 

 

 

35,294

 

 

 

 

 

 

35,294

 

 

 

 

 

 

35,294

 

 

 

(35,294

)

 

 

 

Total costs and expenses

 

4,099

 

 

 

898

 

 

 

61,542

 

 

 

1,830

 

 

 

68,369

 

 

 

8,613

 

 

 

76,982

 

 

 

(55,884

)

 

 

21,098

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

460

 

 

 

 

 

 

460

 

 

 

307

 

 

 

767

 

 

 

(460

)

 

 

307

 

Interest expense

 

 

 

 

 

 

 

 

 

 

(386

)

 

 

(386

)

 

 

 

 

 

(386

)

 

 

386

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

(89

)

 

 

(89

)

 

 

 

 

 

(89

)

 

 

89

 

 

 

 

Miscellaneous

 

112

 

 

 

 

 

 

 

 

 

 

 

 

112

 

 

 

 

 

 

112

 

 

 

 

 

 

112

 

Total other income (expense)

 

112

 

 

 

 

 

 

460

 

 

 

(475

)

 

 

97

 

 

 

307

 

 

 

404

 

 

 

15

 

 

 

419

 

EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES

 

362

 

 

 

 

 

 

96

 

 

 

 

 

 

458

 

 

 

 

 

 

458

 

 

 

(4,723

)

 

 

(4,265

)

SEGMENT LOSS/LOSS BEFORE INCOME TAX PROVISION

 

(543

)

 

 

(672

)

 

 

(13,791

)

 

 

(8

)

 

 

(15,014

)

 

 

(8,306

)

 

 

(23,320

)

 

 

13,792

 

 

 

(9,528

)

INCOME TAX PROVISION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

 

 

 

 

 

(3

)

SEGMENT LOSS/NET LOSS

$

(543

)

 

$

(672

)

 

$

(13,791

)

 

$

(8

)

 

$

(15,014

)

 

$

(8,309

)

 

$

(23,323

)

 

$

13,792

 

 

$

(9,531

)

(1)

Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting.

(2)

For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

 

Nine Months Ended September 30, 2022

 

Valencia

 

San

Francisco

 

Great Park

 

Commercial

 

Total

reportable

segments

 

Corporate and

unallocated

 

Total under

management

 

Removal of

unconsolidated

entities(1)

 

Total

consolidated

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

$

643

 

 

$

 

 

$

29,270

 

 

$

 

 

$

29,913

 

 

$

 

 

$

29,913

 

 

$

(29,270

)

 

$

643

 

Land sales—related party

 

4,529

 

 

 

 

 

 

9,750

 

 

 

 

 

 

14,279

 

 

 

 

 

 

14,279

 

 

 

(9,750

)

 

 

4,529

 

Home sales

 

 

 

 

 

 

 

40,475

 

 

 

 

 

 

40,475

 

 

 

 

 

 

40,475

 

 

 

(40,475

)

 

 

 

Management services—related party(2)

 

 

 

 

 

 

 

18,046

 

 

 

312

 

 

 

18,358

 

 

 

 

 

 

18,358

 

 

 

 

 

 

18,358

 

Operating properties

 

1,637

 

 

 

528

 

 

 

 

 

 

6,248

 

 

 

8,413

 

 

 

 

 

 

8,413

 

 

 

(6,248

)

 

 

2,165

 

Total revenues

 

6,809

 

 

 

528

 

 

 

97,541

 

 

 

6,560

 

 

 

111,438

 

 

 

 

 

 

111,438

 

 

 

(85,743

)

 

 

25,695

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

 

 

 

 

 

 

 

15,118

 

 

 

 

 

 

15,118

 

 

 

 

 

 

15,118

 

 

 

(15,118

)

 

 

 

Home sales

 

 

 

 

 

 

 

30,784

 

 

 

 

 

 

30,784

 

 

 

 

 

 

30,784

 

 

 

(30,784

)

 

 

 

Management services(2)

 

 

 

 

 

 

 

12,372

 

 

 

 

 

 

12,372

 

 

 

 

 

 

12,372

 

 

 

 

 

 

12,372

 

Operating properties

 

5,797

 

 

 

 

 

 

 

 

 

1,823

 

 

 

7,620

 

 

 

 

 

 

7,620

 

 

 

(1,823

)

 

 

5,797

 

Selling, general, and administrative

 

10,545

 

 

 

2,683

 

 

 

15,641

 

 

 

3,201

 

 

 

32,070

 

 

 

28,244

 

 

 

60,314

 

 

 

(18,842

)

 

 

41,472

 

Restructuring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,437

 

 

 

19,437

 

 

 

 

 

 

19,437

 

Management fees—related party

 

 

 

 

 

 

 

38,645

 

 

 

 

 

 

38,645

 

 

 

 

 

 

38,645

 

 

 

(38,645

)

 

 

 

Total costs and expenses

 

16,342

 

 

 

2,683

 

 

 

112,560

 

 

 

5,024

 

 

 

136,609

 

 

 

47,681

 

 

 

184,290

 

 

 

(105,212

)

 

 

79,078

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

704

 

 

 

 

 

 

704

 

 

 

445

 

 

 

1,149

 

 

 

(704

)

 

 

445

 

Interest expense

 

 

 

 

 

 

 

 

 

 

(1,006

)

 

 

(1,006

)

 

 

 

 

 

(1,006

)

 

 

1,006

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

(89

)

 

 

(89

)

 

 

 

 

 

(89

)

 

 

89

 

 

 

 

Miscellaneous

 

336

 

 

 

 

 

 

 

 

 

 

 

 

336

 

 

 

 

 

 

336

 

 

 

 

 

 

336

 

Total other income (expense)

 

336

 

 

 

 

 

 

704

 

 

 

(1,095

)

 

 

(55

)

 

 

445

 

 

 

390

 

 

 

391

 

 

 

781

 

EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES

 

883

 

 

 

 

 

 

331

 

 

 

 

 

 

1,214

 

 

 

 

 

 

1,214

 

 

 

(5,868

)

 

 

(4,654

)

SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME TAX PROVISION

 

(8,314

)

 

 

(2,155

)

 

 

(13,984

)

 

 

441

 

 

 

(24,012

)

 

 

(47,236

)

 

 

(71,248

)

 

 

13,992

 

 

 

(57,256

)

INCOME TAX PROVISION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16

)

 

 

(16

)

 

 

 

 

 

(16

)

SEGMENT (LOSS) PROFIT/NET LOSS

$

(8,314

)

 

$

(2,155

)

 

$

(13,984

)

 

$

441

 

 

$

(24,012

)

 

$

(47,252

)

 

$

(71,264

)

 

$

13,992

 

 

$

(57,272

)

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investments in each venture using the equity method of accounting.

(2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

The table below reconciles the Great Park segment results to the equity in loss from our investment in the Great Park Venture that is reflected in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 (in thousands):

 

Three Months Ended

September 30, 2022

 

Nine Months Ended

September 30, 2022

Segment loss from operations

$

(13,791

)

 

$

(13,984

)

Less net income of management company attributed to the Great Park segment

 

4,512

 

 

 

5,674

 

Net loss of the Great Park Venture

 

(18,303

)

 

 

(19,658

)

The Company’s share of net loss of the Great Park Venture

 

(6,864

)

 

 

(7,372

)

Basis difference accretion

 

2,324

 

 

 

1,738

 

Equity in loss from the Great Park Venture

$

(4,540

)

 

$

(5,634

)

The table below reconciles the Commercial segment results to the equity in (loss) earnings from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 (in thousands):

 

Three Months Ended

September 30, 2022

 

Nine Months Ended

September 30, 2022

Segment (loss) profit from operations

$

(8

)

 

$

441

Less net income of management company attributed to the Commercial segment

 

108

 

 

 

312

Net (loss) income of the Gateway Commercial Venture

 

(116

)

 

 

129

Equity in (loss) earnings from the Gateway Commercial Venture

$

(87

)

 

$

97

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.