Impressive Fourth-Quarter Results

Five Point Holdings LLC FPH is experiencing a surge in share prices following the release of robust fourth-quarter FY23 results.

The company’s revenues skyrocketed to $118.8 million, a significant increase from $17.0 million a year ago. The growth was primarily driven by land sales in its Valencia segment.

Notably, in Valencia, the company closed the sale of land for 583 homesites on approximately 46 acres, amounting to $101.8 million.

In addition, Great Park Venture finalized two commercial land sales for around 38 acres, totaling $174.2 million.

During the quarter, the equity in earnings from unconsolidated entities stood at an impressive $24.0 million. Earnings per share (EPS) also saw notable growth, reaching $0.39, up from $0.15 a year ago.

As of December 31, 2023, the company held cash and cash equivalents of $353.8 million, with borrowing availability of $125.0 million under its unsecured revolving credit facility.

CEO Assessment

Dan Hedigan, Chief Executive Officer, shared his insights, stating, “Achieving these results in the face of a challenging economic and interest rate environment is a testament to our team’s focus on executing our key operating priorities: generating revenue, right-sizing our SG&A, and managing our capital spend. We will continue to closely monitor the market and interest rates; however, we believe that the ongoing housing supply shortage will help sustain strong demand for our land.”

Price Action: FPH shares are up 11.11% at $3.30 premarket at the last check on Friday.