Greetings, and welcome to the Five Point Holdings, LLC First Quarter 2025 Conference Call. As a reminder, this call is being recorded. Today's call may include forward-looking statements regarding Five Point's business, financial conditions, 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 as to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risk and uncertainties. Many factors could affect the 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 Five Point's most recent annual report on Form 10-K filed with the SEC. Please note that Five Point assumes no obligation to update any forward-looking statements. Now, I would like to turn the call over to Dan Hedigan, President and Chief Executive Officer.

Thank you. Good afternoon, and thank you for joining our call. I have with me today Mike Alvarado, our Chief Operating Officer and Chief Legal Officer, Kim Tobler, our Chief Financial Officer; and Leo Kij, our Senior Vice President of Finance and Reporting. Stuart Miller, our Executive Chairman, is joining us remotely. On today's call, I'll update you on our Q1 results and review the status of the company's current operations, including our team's focus during the quarter and our strategic priorities and expectations for the remainder of 2020. Mike will then discuss the growth element of our operating strategy, after which Kim will give you an overview of the company's financial performance and condition with updated guidance for the remainder of 2021. We will then open the line for questions. Turning to the first quarter. I'm pleased to report another successful quarter for Five Point, as we continue to build a program of consistent profitability. During the quarter, we generated stronger-than-expected net income of $60.6 million, which exceeded our guidance by roughly $10 million. Our Q1 results reflect our continued focus on generating revenue, controlling our expenses and managing our capital spend. Here are some additional highlights from the quarter. First, our Great Park Venture growth on all four of our anticipated residential land sales. These programs included 325 homesites on approximately 23.6 acres to three different builders for an aggregate purchase price of $278.9 million. Second, as a result of the Great Park operations during the quarter, Five Point received $143.3 million, as this portion of distribution and its incentive compensation payments. Third, we finished the quarter with total liquidity of $653.3 million comprised of cash and cash equivalents, totaling $528.3 million, an increase on our cash over year-end of $97.5 million and borrowing availability of $125 million…

Thanks, Dan. Let me briefly update you on our efforts in pursuing growth opportunities for Five Point. As you heard us report on our last call, the landline strategy that a number of publicly traded home builders have gravitated towards, has given Five Point the potential opportunity to work alongside the builders in a win-win scenario that would allow the builders to follow their land-life strategy and Five Point to play to its strength in a land development business. To that end, we have been assessing acquisitions that fit into both short-term and mid- to long-term land delivery models. In uncertain market conditions like we have today, unique opportunities often present themselves around land that can enable Five Point to create outsized returns. Five Point is uniquely positioned to do this, given its expertise and experience in a land development business. Regardless of the size and projected development timeline for new acquisitions, like many of the public builders, we intend to acquire new assets in an asset-light structure where we are bringing in third-party capital in a joint venture arrangement that will allow us to expand the reach and diversity of our platform. As I have mentioned previously, this model is one in which we would own an equity interest in the venture, provide management services to the venture, and have the ability to earn an incentive-promoted interest for excellent performance. Bringing in capital partners reduces our capital investment and gives Five Point opportunities to move to an asset-lighter balance sheet model under a well-crafted partnership program. It is not lost on us that capital may be slow to make investment decisions in this current environment, but the need and demand for housing in many job centers around the country will continue to drive the deployment of capital into this market segment. Capital also likes to invest with companies whose management teams have extensive experience with embedded systematic financial and operational controls that can be trusted when investing their capital. Five Point has the management experience and expertise, along with public company-level financial and operational controls, which can and has led to extraordinary achievements like what we are seeing with our existing Great Park Venture. Indeed, the Great Park Ventures members have seen rising returns over the last several years, driven by a combination of our management of the asset and the active engagement of the partners. We believe this is a business model that we can take advantage of as we look at other opportunities for future growth of the company. While we don't have any transactions to report at this time, we still anticipate sharing new opportunities with you before the end of the year. Now, let me turn it over to Kim to report on our financial results for the quarter.

Thank you, Mike. As Mike and Dan have shared, we are proud of how we concluded our first quarter by exceeding our guidance. Well, at the same time, we've been monitoring the markets closely as we look forward to the coming quarters and our land development activities and anticipated land sales later this year. First, as Dan noted, S&P recently reviewed our credit rating and determined it was appropriate to improve our ratings. I appreciate the time and effort S&P put forward to understand our structure and strategy and the confidence they have expressed in our ability to execute on our plans for the next 12 months. I'm now going to review our first quarter financial results. Then I will conclude by updating the guidance of what we are expecting for the remainder of 2025. In the first quarter, we recognized $60.6 million of net income. This is made up of the following components. We recognized $71.4 million of equity and earnings from our unconsolidated entities, $70.9 million of which came from the Great Park Venture. The equity and earnings from the Great Park Venture was attributable to net income of $206.3 million, which resulted from land sales revenue of $278.9 million and add a 75% gross margin. The venture also had $6.4 million of price participation in Papa [ph] revenue. Five Point added $12.6 million of management services revenue, $9.2 million of which is associated with the incentive compensation from the Great Park. Our first quarter SG&A was $14.8 million. And finally, we recognized $9.5 million of tax expense. Now, a few words about our liquidity and cash. As Dan mentioned, we ended the quarter with $528.3 million of cash, as well as $125 million of availability on our revolving credit facility, resulting in total liquidity of $653.3 million.…

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Kenneth Pounds with Castlebury Advisory. Please proceed with your question.

Good afternoon gentlemen and very good quarter. The governor mentioned that perhaps there'd be some layers of regulation taken off or some speed up because of even the more acute housing situation? Would that potentially benefit your two developments?

Kenneth, thanks for the question. The answer is absolutely. Anything we can do to expedite process in California is supportive of us delivering housing.

Is there anything like finite on there? Have you seen any like changes in rules or timelines?

There's been a lot of discussion in Sacramento, but we haven't seen anything concrete yet. But there also is a lot of legislation this year because there is an increased focus every year on the lack of housing supply in California. So I don't have anything today I could share with you, there is a lot of activity that we're monitoring of Sacramento.

Great. You talked about San Francisco, I guess, starting next year. Do you have -- when would you perhaps have some CapEx plans or more of a budget for next year for that?

Yes. Kenneth, we'll like -- this is Kim. We'll likely start giving some insight on that towards the end of the year, early next year.

Great. Okay. Thank you.

Thank you. Our next question comes from the line of Ben Fader-Rattner with Space Summit Capital. Please proceed with your question.

Hi. Just for the record, I'm calling a personal capacity, not for any firm. So your -- you had cash roughly equal to your debt, every week that goes by, there is a drag that cost shareholders' money. Why aren't you being more proactive in reducing the debt while you wait for market conditions, I just don't see the point of sitting with so much cash right now when you have a negative carry. Can you comment?

Yes, Ben, this is Kim. The challenge that we face is the 200 basis point cost of paying down the debt. And there was a short period of time when it made -- it seemed to make sense if we could have refinanced at a lower rate. But given the way the markets have moved, it doesn't seem prudent until that premium is removed late in the year. So just to say, as we said, we're monitoring the markets. We recognize that it is a bit of a carry, but we're also earning quite a bit on the cash we're in a good return. We're earning over 4% on the money we have. And that's that 200 basis points on the full amount makes a very significant dent in the ability to do that. So we’re looking at it.

But on that point just to push back. I mean, you can earn about 4% on cash. It costs you over 10% in coupons. So you're spending $30 million of negative carry. The cost to take that out would be $10 million. I mean, I'm not suggesting you take out the whole thing, but I just -- the math on taking out some of it now, I think, is accretive. I don't see why you would incur a six-point delta for seven months when you can take it out right now at 102. It just -- it seems like cost effective to do so. But I wanted to go on record saying that.

Yeah. I appreciate it, Ben.

So in terms of just the Great Park land sales that you did, it's amazing the numbers just keep going higher. It looks like it was around $12 million per acre for this last land sale. When you say that the additional land sales will be in line with what occurred, just to be clear, you're saying that $12 million is now the future number? Or is it kind of the $10 million that you had talked about previously?

Ben, this is Dan. The blended number on the last four sales that closed where I gave you the information revenue is about $11.8 million. We are still seeing sales in that area. I would not start suggesting that $12 million is the new standard, but our most recent sale and other bids we have out there are consistent with that $11 million number.

Okay. And then just in terms of the commercial land and the ability to -- or the potential ability to convert it into residential, -- what do you think the timing looks like in terms of having the go-ahead from the city of Irvine to re-entitle that land for residential purposes?

Ben, we're in kind of ongoing discussions on that topic, and I don't think I can really put a time frame for it. Just know that we are actively involved looking at it. And we'll have more information later this year.

Okay. All right. Great. Thank you. Appreciate it. Great quarter.

Thank you.

Thank you. Our next question comes from the line of Andrew Oaken [ph], a private investor. Please proceed with your question.

Hi, guys. Thanks for taking my call. And I apologize if I can find this somewhere in the 10-K. But how much commercial land do you have left entitled in Irvine as far as acres?

We have -- I'm doing the math. We have 100 acres of commercial land between four sites that we constantly look at, we call it lots 2, 7, 10 and 11.

Okay. And there would be some, obviously, that couldn't all be sold in this way, there would have to be some left for open space and stuff like that. Is that fair?

Well, those are actually -- all of our open space and other obligations and that type of land have already been met through other obligations. So these are gross acres, though. You don't get 100% efficiency in the sense that you do have streets, parks, some other things that would go into them on a residential basis.

Okay. Are you willing to give what -- was that like 80% or something or not enough?

Generally speaking, I just, as a matter of course, use 85% efficiency.

Okay. Thanks a lot. Yeah. Great quarter. Thanks a lot for answering my question.

Thank you.

Thank you. Our next question comes from the line of Myron Kaplan [ph], a private investor. Please proceed with your question.

Hi, Kim. How are you?

Doing well, Myron.

So really, The Great Park is the gift that never stops giving.

Absolutely. We're very grateful for the work that's been done there.

Yes. Super. Very good quarter. So I guess, the plan is at the end of the year, a refi than finally, like you said where you'll wait for the 2 points to come off.

Yes. If the markets are open. If you've been following the high-yield markets, it's a bit challenging out there right now.

Well, you could pay off the bond and probably work a very small issue of $200 million to $250 million, and then you have the revolver in your business.

Yes, we're looking at all those options, Myron.

Yes. I mean I don't see how the market is going to refuse you. Any way very good. I guess, lens, you're going to try to gear up.

Yes. We're trying to get a reasonable pipeline that gives us the strength to have multiple years of product available to give us a longer pipeline, and we're working hard on that process.

Do all of the Palisades fires or sees that augment the thrust behind it? Or is it everything kind of frozen?

Well, I think that the fires -- the recent fires have created need. We're still sorting out the impacts it has on the government approval processes.

Okay. We'll patient and I guess San Francisco is work in progress.

It is, but we'll have more to say about that later in the year as well.

Okay. Well done. Thanks.

Thanks, Myron.

Thank you. And we have reached the end of the question-and-answer session. I would like to turn the floor back to Dan Hedigan for closing remarks.

Thank you. On behalf of our management team, we thank you for joining us on today's call, and we look forward to speaking with you next quarter.

Thank you. And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.