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
Executive
Emile Hadad

we are in a position to have several million square feet built over the coming three or four years. Opportunistically, we are not going to be building on spec. And we have at least now one deal done and we are going to have our homes done and then we have two or three others in the works that will be a build-to-suit.

And currently, we intend to use the cash on the balance sheet as our equity and we will do construction financing and then later on convert that to permanent that based on market availability and what the market will provide. And that's really was the main reason why we raised $125 million is to make sure that we have the equity between that and the land value to be able to move forward.

So, I think you should expect us over the coming three -- two or three or four quarters to be daylighting more commercial opportunities as they get finalized.

Analyst
Alan Ratner

Great. All right. Thanks a lot.

Operator
Operator

And next we'll go to Stephen Kim with Evercore.

Analyst
Stephen Kim

Yes. Thanks very much, guys. Yes, looking forward to 2020. It looks like it's going to be a pretty interesting year for you. Two general questions I had, one on the commercial side, the other one on Valencia and long-term planning there. I guess, if we [Phonetic] start with the commercial. I was wondering if you could update us, I think the last we heard from you, gateways NOI in 2020, $27 million. Still wondering if that's a good estimate. And also, if you could give us some sense of when we might see the first recognized revenues and NOI in Great Park, non-gateway, Great Park assets as well as Newhall and Shipyard. And I guess I might as well throw in if there is any comps to help us sanity check longer term -- our longer-term outlook for NOI and NOI growth in the division.

Executive
Emile Hadad

Sure. So, hi, Stephen. So look, I -- as I said, I think we are going to be looking at each of our commercial opportunities in a very strategic way. We announced the City of Hope deal and hopefully we'll get the approvals very quickly to convert the building from office to medical and that has now become a catalyst for a much larger healthcare opportunity that we have at the Great Park. And as we finalize some of these discussions with some of these healthcare providers, we'll be able to give you a little bit more color on that. We also, now that we've completed the sports complex and ice arena, now that we have the waterfall facility and the field house, we have a very high amount of people that go through all these facilities, and that's why we are building the commercial and hospitality across the street.

So, we're going to look at each of these opportunities individually and look at it strategically. The same thing with Valencia. But let me backup