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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Q & A
Operator
Operator

Thank you. The question-and-answer session will be conducted electronically. [Operator Instructions] And we'll take our first question from Alan Ratner with Zelman & Associates.

Analyst
Alan Ratner

Hey, guys, good afternoon. Thanks for taking my question. So first off, great to hear that you're still on track at Valencia for those lot sales before the end of the year. I'm assuming based on that, that fortunately, it sounds like the fires didn't affect you guys there much with the timeline. Is there any color you can just provide at this point? I mean, we're six weeks before the end of the year. And just in terms of how many lot sales or how many lots should we expect in this round and any information on the type of product that will be in the initial phase, any economics behind that that you can share with us, I think would obviously be very helpful.

Executive
Emile Hadad

Hi, Alan, this is Emile. Nice hearing from you. Well, first of all, we have not been impacted by the fires and thank God that's not close to us [Phonetic]. In a new development build to a higher different standards and therefore we feel much more comfortable in new development with all the requirements we have to go through for fire buffers.

In terms of color, we've always guided to about 500 homesites. I think I am confident that we will be above that number. I can't yet share what the number is, but I think we're going to be above that number. In terms of products, there will be multiple products, probably more than seven or eight products, somewhere in that range, at least, that we will be doing, which provides for the proper segmentation and cover the wide range of pricing that we always aim at. As you recall, we try to target about 40% of the -- start from a 40% of the median home price in our marketplace to about 1.7, and I think, this initial product offering will be covering those type of phases.

I can't talk about the economics yet, since we haven't closed, but stay tuned and by the time we report the fourth quarter, you'll be able to see why we've been excited and waiting for the last.

Analyst
Alan Ratner

Okay. We are eagerly awaiting. I appreciate that, Emile.

The second question, you guys were in the capital markets during the quarter with the tack on and I'm just curious if there is anything you could share maybe forthcoming on the commercial side that you saw an opportunity to raise that capital or is that just more kind of being proactive for opportunities down the road. And I guess just generally how you're thinking about the commercial opportunity at this point?

Executive
Emile Hadad

Sure. So we've talked about that in the last quarter as questions were asked about why did we raise the additional $125 million and I said, we really are giving ourselves capital that allows us to start capitalizing on our commercial opportunities now that