Greetings and welcome to the Five Point Holdings LLC Third Quarter 2021 Conference Call. As a reminder, this call is being recorded. Today's conference may include forward-looking statements regarding Five Point's business, financial condition, operations, cash flow, strategy, and prospects. Forward-looking statements represent Five Point's estimates on the date of this conference call and are not intended to give any assurance to the actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could affect future results and may cause Five Point's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in today's press release and Five Point's SEC filings, including those in the risk factor section of the most recent annual report included in Form 10-K filed with the SEC. Please note that Five Point assumes no obligation to update any forward-looking statements. And now, I would like to turn the call over to Lynn Jochim, President and COO.

Good afternoon, everyone, and thank you for joining us for our third quarter earnings update. This is my first quarterly call as President of Five Point, and I'm joined here today by our management team: Erik Higgins, our Chief Financial Officer; Mike Alvarado, our Chief Legal Officer; and Greg McWilliams, our Chief Policy Officer; and also by Stuart Miller, our Executive Chair; and Emile Haddad, our Chairman Emeritus. I'd like to take this moment to share my appreciation to our board for entrusting me with this leadership role and to my team for remaining by my side as we continue to implement the strategy of Five Point and our vision for the communities. I'm very pleased to update you on the progress of the company and the activity for the quarter. I will also share some thoughts about our strategy going forward. Then Erik will give an overview of the company's financial performance and condition. We will then open the line for questions to our management team. Let me begin by saying that I couldn't be more optimistic about the current position of Five Point as a leader in building blue-chip sustainable mixed use communities. Business conditions continue to be favorable for Five Point and its homebuilding partners. As we noted in our press release, homebuilders are continuing to see strong demand throughout California, and it is especially true in our unique Five Point communities. During the third quarter, we made significant progress in preparing our company and our communities for success. At the Great Park community, home sales remained strong and sold 135 during the third quarter, bringing year-to-date total to 591, which is a 44% increase compared to the first nine months of 2020. Great Park Neighborhoods is now capturing approximately 23% of the new home sales in…

Great. Thanks, Lynn. Okay, a summary of our financial results was included in the earnings release issued earlier today. I'll start with our consolidated results and then address each of our four segments and conclude with comments about our balance sheet and liquidity position. The Company's consolidated revenues for the third quarter totaled $20.7 million. The Company received a $10 million payment related to a non-residential property, which was initially sold in 2011. The balance of the consolidated revenue for the quarter primarily consisted of $10.2 million in revenue generated from management fee services provided to the Great Park Venture. Our Great Park Venture, an unconsolidated joint venture, sold 113 home sites to builders and eight homes during the quarter, generating sales proceeds of $78 million. Under the equity method of accounting, our consolidated income statement for the quarter does not include the revenues and expenses of the Great Park Venture. Instead, we recognize our share of the net income from the Great Park Venture as equity and earnings from unconsolidated entities. After adjusting for our basis difference, we recognized $367,000 in earnings from our share of the Great Park Venture's net income for the quarter. Total consolidated costs and expenses were approximately $30.9 million, including $20.8 million in selling, general and administrative expenses for the quarter, as well as $8.1 million in expenses incurred in connection with providing management services to the Great Park Venture. Net loss for the quarter was approximately $8.2 million, of which $4.4 million was allocated to the non-controlling interests, leaving $3.8 million attributable to the company. Moving to the segment results. The Valencia segment is consolidated for accounting purposes. The Valencia segment includes our Valencia community that is approximately 15,000 acres in North Los Angeles County and is designed to include approximately 21,500 home…

Thank you. [Operator instructions] And we'll take our first question from Alan Ratner with Zelman & Associates. Your line is open.

Hey guys, good afternoon, and Lynn, congratulations on the new opportunity and role, looking forward to chatting with you going forward. So first question, just as far as the outlook on Valencia land sales either next quarter or the first quarter of 2022. I was wondering if you could give us a little bit of a framework on what to expect there. I think in the past, you might have indicated, in addition to lot sales, maybe there were some opportunities for apartment sales or maybe even commercial sales. I'm just curious how you see that playing out over the next few quarters.

Thank you. And thank you for your kind words for my first call today. Yes, we are currently speaking with the builders, many of them who are -- already been a part of the Valencia community and have had great success up there when we opened earlier this year. We are in conversations with them on home sites that we're hoping then they have the opportunity to themselves bring to market in later of 2022 in new homes. We are continuing to evaluate the apartment opportunities, as well as the commercial opportunities up there.

Got you. But at this point no target number of lots or acres or anything you want to put out there just as far as helping us thinking about the next quarter or two on the model?

Overall, I think we are looking to at least get a few -- 300, 400, 500 homes, maybe 500 homes out there to be able to continue the homes that are already selling. We're -- like I said, the homebuilders are seeing successes, and they are looking to carry on and keeping their programs going.

Got it. Okay, that’s helpful, at least on the 500 mark. Second question, maybe this one's for Erik. But just thinking about the balance sheet. Obviously for now, the liquidity position remains quite strong but the current cash balance has been continuing to drift lower here. And obviously, the San Francisco project is the big wildcard and whenever that kind of gets off the ground, I would imagine there's going to be some upfront development costs and expenses that need to go along with that. So how are you thinking about the cash position? And thinking 2022, 2023, assuming San Francisco is able to kind of get off the ground here, is there the potential for another debt raise, capital raise that would need to fund that? Or do you think the Valencia and Great Park distribution is enough to kind of satisfy the funding for the first round of development there whenever it occurs?

Hey thanks, Alan. Look, at $191 million we feel very comfortable that we have sufficient capital and liquidity to continue implementing on our strategy at Valencia, and we anticipate distributions from the Great Park Venture as well to augment that. And so we're not planning on San Francisco contributing in the next year or two. And so we don't have any plans to raise additional equity or additional debt because we feel very comfortable with the liquidity position that we have right now and looking at our cash coming in from land sales and cash going out toward inventory expenditures to further develop land.

Great. Okay. Thanks. Good luck, guys.

[Operator instructions] Next, we'll go to Stephen Kim from Evercore ISI. Your line is open.

Yes, thanks very much guys, and let me also add my congratulations to Lynn. I wanted to start off by addressing something that you all referred to with respect to addressing the chronic housing shortage in California. I was curious as to -- I know that recently, there's been some movement in the state to sort of directly tackle that. I was curious if you could talk about perhaps how Five Point, with its unique positioning in the market, to what degree are you involved in some of those conversations? And have you seen anything in particular that plays particularly to your strengths or things that you can do to improve the situation?

Thank you, Stephen, and again, thank you for the kind words for today at my first call. As you know, where we are located in these three very strategic marketplaces, they are locations that have had very little supply over the years and jurisdictions that today, because of the state mandate, are looking to expand their housing market. We have been in discussions in Irvine for some time since the program came out called the RHNA program, Regional Housing Needs Assessment across the state of California, which went -- has gone through the state and evaluated the housing needs in every jurisdiction across the state. Irvine itself is one that we -- like I said, we've had a lot of conversations with. We have engaged with them on opportunities here at the Great Park and how we can provide the necessary housing that they have been targeted to deliver in order to meet the state needs. So that's Irvine. We're still working through what that means, how much that would be and what kind of type of houses that would be. In our other markets, in Valencia and in San Francisco, where we have been approved for substantial housing in these marketplaces, we are continuing to work with those jurisdictions to get that market online and out to the community and out to the homebuyers as quickly as we can and coordinating with them on different opportunities in order to do that.

Yes, that certainly seems like you all are doing your part. My second question actually relates to the actual bringing of these communities online and bringing this product to the market. One of the things we've obviously seen over the last nine months has been a real sea change in the -- where the bottlenecks are, particularly the builders have found that access to materials with the supply chain to functionality has superseded their access, their troubles gaining access to incremental lots, for example. I'm curious if there's anything that you've seen over the last nine months, let's say that has altered your thinking at all with respect to your builder-partners, for example. Have you seen any material difference in builder’s ability to navigate through some of these issues? Have you -- any thoughts that perhaps the ability to support incremental units is maybe a little less than you had previously thought as a result of some of these bottlenecks and supply chain problems lasting maybe a little longer things of that nature? I'm curious if anything about the supply chain problem over the last nine months has changed your thinking at all about your future plans.

And thank you again. And it really hasn't, Stephen. We are -- have been partners with our builders in these communities for quite some time. And we work as partners we solve problems as partners as, like I said, they have been repeated buyers. I know that many of the builders are navigating their waters through finding resources and things in order to deliver homes. But we have not seen any issue right now, as we speak, to their ability to continue to be active in our communities going forward.

Okay. That’s encouraging. Thanks very much.

And at this time, I'll turn it back to Lynn Jochim for closing remarks.

Thank you, all. I just wanted to say again, there's always the first day for everything, and we appreciate you participating in the call, and thank you again.

And that does conclude our call for today. Thank you for your participation. You may now disconnect.