Five Point Holdings, LLC (NYSE:FPH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 01:00 pm ET

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Five Point Holdings, LLC (NYSE:FPH) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Five Point Holdings Third Quarter 2019 Conference Call. Currently, all participants are in a listen-only mode. As a reminder, this conference is being recorded. Today's conference call may include forward-looking statements regarding Five Point's business, financial condition, operations, cash flow, strategy and prospects. Forward-looking statements represent only 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 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 Factors 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.

I'd now like to turn the call over to Bob Wetenhall, Executive Vice President of Capital Markets. Please go ahead, sir.

Executive
Bob Wetenhall

Thank you, operator. This morning, I'm here with our CEO, Emile Hadad; our CFO, Erik Higgins; our Chief Legal Officer, Mike Alvarado; and our co-COOs, Kofi Bonner and Lynn Jochim.

Emile will now provide an overview of recent developments. Eric will then review quarterly financial performance.

Executive
Emile Hadad

Good afternoon and thank you for joining us. Operationally, this has been a very busy quarter for the Company. In Valencia and Los Angeles County, we continued our land development activity and we remain on schedule to deliver our first homesites to builders next month. This fourth quarter will be a major milestone for the Company as we start generating revenues in Valencia after many years of litigation. Valencia will be the biggest provider of residential homesites in Los Angeles County, and will be another Five Point mixed-use community with recreation, entertainment, retail, hospitality and high standard of the public education. Anyone who visits the Great Park in Irvine can see proof of concept of how we build communities.

At our Great Park community in Irvine, home sales by our guest builders remain consistent with seasonal trends. We received approvals last month from the city to move forward with 125,000 square foot fitness facility, which will be a build-to-suit for a nationally-recognized blue chip brand. We also received approvals for 428,000 square foot mixed-use retail and commercial center that includes a 180-room extended stay hotel and 161-room boutique hotel, that will be built adjacent to the Sports Park and the Five Point Ice Arena, which showcases our partnership with Anaheim Ducks.

Finally, we received approvals to build a state-of-the-art field house as well as a world-class aquatic center, which will be both the new home of the US National Water Quality and will be part of the Los Angeles '28 Olympic program. These facilities will complement the existing sports complex and will not only