Five Point Holdings LLC (FPH) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Five Point Holdings second-quarter 2024 conference call. As a reminder, this call is being recorded.

您好，歡迎參加五點控股 2024 年第二季電話會議。提醒一下，此通話正在錄音。

Today's call may include forward-looking statements regarding Five Point's business, financial condition, operations, cash flow, strategy and prospects. Forward-looking statements represent Five Point's estimates on 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 future results and may cause Five Point's actual activities or results to differ materially from the activities and results anticipated in the forward-looking statements.

今天的電話會議可能包括有關五點的業務、財務狀況、營運、現金流量、策略和前景的前瞻性陳述。前瞻性陳述代表五點公司在本次電話會議召開之日的估計，並不旨在對未來的實際結果提供任何保證。由於前瞻性陳述涉及尚未發生的事項，因此這些陳述本質上會受到風險和不確定性的影響。許多因素可能影響未來的結果，並可能導致五點的實際活動或結果與前瞻性陳述中預期的活動和結果有重大差異。

These factors include those described in today's press release and Five Point's SEC filings including those in the Risk Factors section of 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 statement.

這些因素包括今天的新聞稿和 Five Point 向 SEC 提交的文件中描述的因素，包括 Five Point 向 SEC 提交的最新 10-K 表格年度報告的風險因素部分中的因素。請注意，五點不承擔更新任何前瞻性聲明的義務。

Now I would like to turn the call over to Dan Hedigan, Chief Executive Officer.

現在我想將電話轉給執行長 Dan Hedigan。

Thank you, Paul. Good afternoon, and thank you for joining our call. Just a little announcement for -- and I'm recovering from a cold. So my voice is going to sound a little bit different and hopefully, it doesn't flare up in the middle of the call, but I just want to let you all know that.

謝謝你，保羅。下午好，感謝您加入我們的通話。只是一個小通知——我正在從感冒中恢復過來。所以我的聲音聽起來會有點不同，希望它不會在通話過程中突然爆發，但我只是想讓大家知道這一點。

I have with me today Kim Tobler, our Chief Financial Officer; Mike Alvarado, our Chief Operating Officer and Chief Legal Officer; and Leo Kij, our Senior Vice President of Finance and Reporting. Stuart Miller, our Executive Chairman, is joining us remotely.

今天與我在一起的還有我們的財務長 Kim Tobler； Mike Alvarado，我們的營運長兼首席法務長；以及我們的財務和報告資深副總裁 Leo Kij。我們的執行主席 Stuart Miller 將遠端加入我們。

On today's call, I'll update you on our Q2 results, on our team's focus during the quarter, and the steps we're taking to implement our strategic priorities. Next, I've asked Mike Alvarado to overview Five Point's experience managing and participating in our joint venture at the Great Park, given the meaningful improvement and execution at the venture over the past two years. We believe this experience represents a proxy for potential opportunities to growth as we look towards the future in our existing master plan communities and beyond. Last, Kim will give an overview of the company's financial performance and conditions with some limited guidance for third quarter and the full year. We'll then open the line for questions to our management team.

在今天的電話會議上，我將向您介紹我們第二季度的業績、我們團隊在本季度的重點以及我們為實施策略重點而採取的步驟。接下來，我請麥克·阿爾瓦拉多（Mike Alvarado）概述了 Five Point 管理和參與我們在 Great Park 的合資企業的經驗，以及過去兩年該合資企業的有意義的改進和執行。我們相信，當我們展望現有總體規劃社區及其他社區的未來時，這種經驗代表了潛在的成長機會。最後，Kim 將概述公司的財務業績和狀況，並對第三季和全年提供一些有限的指導。然後，我們將開通往管理團隊提問的熱線。

So let's begin. I'm very pleased to report a strong quarterly performance as we continue to focus on fortifying our balance sheet by generating revenue, controlling our expenses, and carefully managing our capital spend to match near-term revenues.

那麼就讓我們開始吧。我很高興地報告強勁的季度業績，因為我們繼續專注於透過創造收入、控制支出和仔細管理資本支出以匹配近期收入來強化我們的資產負債表。

In the second quarter, we generated net income of $38.2 million, which reflects the continued strength of builder demand for residential land. In this quarter, most of our performance is driven by execution in our Great Park community, as evidenced in part by our closing during the quarter of 12.3 acres of land at the Great Park to $96.1 million, [that is] $7.8 million per acre at a 70% profit margin. This sale contributed to the $15.5 million of equity in earnings from unconsolidated investments for the quarter. Additional income derived from participation in better performance on prior land sales in the Great Park.

第二季度，我們實現了 3,820 萬美元的淨利潤，這反映出建築商對住宅用地的需求持續強勁。在本季度，我們的大部分業績都是由 Great Park 社區的執行推動的，部分證據是我們在本季度將 Great Park 的 12.3 英畝土地出售至 9,610 萬美元，即每英畝 780 萬美元。利潤率。此次出售為本季非合併投資收益貢獻了 1,550 萬美元的股本收益。額外收入來自參與大公園先前土地銷售的較佳表現。

Additionally, consistent with our focus on holding down costs, we held our overall SG&A at $12.2 million, which is slightly less than the second quarter of last year and the first quarter of this year. During the quarter, in addition to the previous mentioned closed sale, our Great Park Venture also signed a contract to sell additional homesites in our next development area for $9.6 million acre for a total purchase price of just over $300 million. This sale is anticipated to be closed in the fourth quarter of the year. Our venture also recently marketed for sale, additional residential land in another development area in the Great Park, so we would anticipate closing in the first half of next year.

此外，與我們對控製成本的關註一致，我們將整體銷售及管理費用維持在 1,220 萬美元，略低於去年第二季和今年第一季。在本季度，除了前面提到的封閉式銷售外，我們的Great Park Venture 還簽署了一份合同，以960 萬英畝的價格出售我們下一個開發區的額外宅基地，總購買價略高於3億美元。此次出售預計將於今年第四季完成。我們的合資企業最近也在大公園另一個開發區出售額外的住宅用地，因此我們預計將於明年上半年關閉。

We were not surprised that we received strong builder interest in these homesites with continued increases in per acre land values. And we are now in negotiations to document those transactions. While increases in per acre land values can be attributed in part to market conditions, we've begun allowing builders to design the home programs in our communities as this change has also contributed towards the higher land residual values for us.

隨著每英畝土地價值的不斷增加，建築商對這些住宅區產生了濃厚的興趣，我們對此並不感到驚訝。我們現在正在談判記錄這些交易。雖然每英畝土地價值的增加部分歸因於市場條件，但我們已經開始允許建築商在我們的社區設計住宅項目，因為這項變化也為我們帶來了更高的土地剩餘價值。

As we look to increase engagement we have with our guest builders and design to drive land value, we will always maintain our role as master developer to ensure that we segment the programs being built and sold by the builders are always maintaining appropriate velocity in each community.

當我們希望增加與客座建築商的互動並設計以提高土地價值時，我們將始終保持作為主開發商的角色，以確保我們對建築商正在建造和銷售的項目進行細分，始終在每個社區保持適當的速度。

While the news regarding interest rates and inflation continued to send mixed signals during the quarter, we're able to achieve the results due to the team's execution and our ability to capitalize on the fact that California generally and our community, specifically, remain in chronically undersupplied residential landmark. The shortage is primarily driven by California's challenging land use approval process. Expect shortages of entitled land and existing home inventory, we continue to drive strong demand from builders.

雖然有關利率和通貨膨脹的消息在本季度繼續發出混合信號，但由於團隊的執行力以及我們利用加州和我們的社區（特別是我們的社區）長期處於困境這一事實的能力，我們能夠取得這些成果。短缺的主要原因是加州具有挑戰性的土地使用審批程序。預計有資格的土地和現有房屋庫存將出現短缺，我們將繼續推動建築商的強勁需求。

Moving to our balance sheet, we ended the quarter in a healthy liquidity position with $217 million in cash and zero dollars drawn on our $125 million revolver, giving us a total liquidity of $342 million. Kim will cover more details regarding our financials during his comments.

轉向我們的資產負債表，本季結束時，我們的流動性狀況良好，現金為 2.17 億美元，1.25 億美元的循環資金提取金額為零，流動性總額為 3.42 億美元。金將在評論中介紹有關我們財務狀況的更多細節。

Let me now expand a bit on general market conditions. While interest rates trended up during most of the second quarter, they trended down towards the end of the quarter and generally have continued in that direction since quarter end. The continued lack of existing home inventory coupled with low unemployment and fairly strong consumer confidence has helped sustain demand for new homes in our communities and therefore, land acquisitions for our guest builders. The limiting factor on new home demand remains affordability, which is driven in large part by the impact of higher interest rates.

現在讓我詳細介紹一下一般市場狀況。雖然利率在第二季度的大部分時間呈上升趨勢，但在季度末呈下降趨勢，並且自季度末以來總體上一直呈下降趨勢。現有房屋庫存持續缺乏，加上低失業率和相當強勁的消費者信心，有助於維持我們社區對新房的需求，從而維持我們客座建築商的土地收購需求。新房需求的限制因素仍然是負擔能力，這在很大程度上是由利率上升的影響所推動的。

Conditions in our markets remain relatively strong for homebuilders. As we have mentioned in the past, our homebuilders, who for the most part are large, publicly owned builders have a variety of incentive structures to mitigate the impacts of interest rates to support new home sales. With the ability to adjust those incentives in response to interest rate movements, these homebuilders made uniquely able to capture and sustained demand to allow new home sales to continue. While there have been reports of a slowing in new home sales nationally in Q2, we saw our guest builders close 84 new home sales at Valencia compared to 62 in Q1, and 63 new home sales at Great Park compared to 69 in Q1, despite very limited inventory.

對於房屋建築商來說，我們的市場狀況仍然相對強勁。正如我們過去提到的，我們的房屋建築商大部分都是大型公有建築商，他們有各種激勵結構來減輕利率的影響，以支持新房銷售。這些房屋建築商能夠根據利率變動調整這些激勵措施，因此能夠獨特地捕捉和維持需求，從而使新房銷售繼續進行。雖然有報導稱第二季度全國新屋銷售放緩，但我們看到我們的客座建築商在巴倫西亞完成了84 套新屋銷售，而第一季度為62 套；在Great Park 完成了63 套新屋銷售，而第一季為69 套，儘管庫存有限。

On the commercial land side of our business, we currently are only actively marketing to site at the Great Park as a commercial-oriented land in our other communities won't come online for some time. While we are still seeing interest from both developers and users for these sites, we're also looking at opportunities to repurpose the site for residential use, given the depth of demand and value is being driven by residential uses, much like we did with the 35-acre commercial site in Valencia that we converted to a residential use. We'll have more to report on this in the coming quarters.

在我們業務的商業用地方面，我們目前只在大公園積極進行行銷，因為我們其他社區的商業用地在一段時間內不會上線。雖然我們仍然看到開發商和用戶對這些網站的興趣，但我們也在尋找機會將該網站重新用於住宅用途，因為需求和價值的深度是由住宅用途驅動的，就像我們對住宅用途所做的那樣我們將巴倫西亞 35 英畝的商業用地改造成住宅用途。我們將在未來幾季對此進行更多報道。

Let me now provide you with some updates on our communities, starting first with the Great Park Neighborhoods. As a reminder, at the Great Park is the most mature of our communities, and its ongoing contribution to our financial results reflect the benefit that we and our Great Park Venture partners our receiving from the investments made to this community in prior years.

現在讓我向您提供我們社區的一些最新情況，首先從大公園社區開始。提醒一下，Great Park 是我們社區中最成熟的社區，它對我們財務表現的持續貢獻反映了我們和 Great Park Venture 合作夥伴從前幾年對該社區的投資中獲得的收益。

During the first quarter, builders on the Great Park community sold 63 homes. As I noted earlier, that number is lower than normal due to limited number of open builder programs at Great Park. During the quarter, there were only two to three actively selling products in our two open neighborhoods.

第一季度，Great Park 社區的建築商售出了 63 套房屋。正如我之前指出的，由於大公園的開放建築商計劃數量有限，該數字低於正常水平。本季度，我們的兩個開放社區中只有兩到三種積極銷售的產品。

Our Solis neighborhood currently has one builder product on for sale. And Luna Park, our newest neighborhood, only has two build products on for sale. We anticipate another six builder products to open in the third quarter at Luna Park. As these programs unfold, we will once again be able to offer a wide variety of housing options in Great Park Neighborhoods.

我們的索利斯社區目前有一種建築產品正在出售。我們最新的社區月神公園只有兩種建築產品在販售。我們預計第三季將在月神公園開設另外六款建築產品。隨著這些計劃的展開，我們將再次能夠在 Great Park 社區提供多種住房選擇。

Despite the limited inventory, we are encouraged by sustained interest and traffic in the community, affirming the ongoing appeal of the Great Park Neighborhoods to prospective homebuyers. As I mentioned earlier, there remains strong homebuilder interest in acquiring homesites at Great Park. In this quarter, we completed the bidding process for a group of five new residential programs, which is under a signed contract for the meaningful deposit received by the Great Park Venture.

儘管庫存有限，但社區持續的興趣和客流量令我們感到鼓舞，這證實了大公園社區對潛在購房者的持續吸引力。正如我之前提到的，房屋建築商對收購 Great Park 的宅基地仍然抱有濃厚的興趣。在本季度，我們完成了五個新住宅項目的招標過程，這些項目是根據 Great Park Venture 收到的有意義的定金簽訂的合約簽訂的。

We have also completed the bidding process and are negotiating the contracts for our homebuilder partners for sale of five additional programs with approximately 400 homesites. We'll have more report on these programs later in the year.

我們還完成了招標過程，並正在與我們的住宅建築商合作夥伴就出售另外五個項目（約 400 個住宅區）的合約進行談判。今年稍後我們將收到有關這些計劃的更多報告。

Now I'll move to Valencia, our other active community. Valencia is still in its early stages of development with many future phases of land delivery ahead of it, which will enable us to add much-needed supply for housing, particularly in the Los Angeles market. During the second quarter, our guest builders sold 84 new homes lunches. Valencia's initial phase of 1,268 homes is now sold out.

現在我將搬到巴倫西亞，我們的另一個活躍社區。巴倫西亞仍處於開發的早期階段，未來將有許多土地交付階段，這將使我們能夠增加急需的住房供應，特別是在洛杉磯市場。第二季度，我們的客座建築商售出了 84 份新房午餐。巴倫西亞首期 1,268 套住宅現已售罄。

In our current Valencia development areas, we have seven builder programs open and actually selling. Additionally, from the land we sold in the last year, there are six programs we anticipate will open in late 2024 and early '25 offering more product diversity for prospective homebuyers.

在我們目前的巴倫西亞開發區，我們有七個開放並實際銷售的建築商計劃。此外，從我們去年出售的土地來看，我們預計有 6 個項目將於 2024 年末和 25 年初開放，為潛在購屋者提供更多的產品多樣性。

As I noted above, on our last call last few calls, we have discussed the potential conversion of a 35-acre site from commercial to residential use, which is permitted under our flexible zoning. We are now finalizing the contract with a homebuilder to sell this 35-acre mixed use site for 179 homes with the sale anticipated to close in the fourth quarter of this year.

正如我上面提到的，在我們最後幾次通話中，我們討論了將 35 英畝的土地從商業用途轉變為住宅用途的可能性，這是我們靈活分區所允許的。我們目前正在與一家住宅建築商敲定合同，出售這片佔地 35 英畝的混合用途土地，建造 179 套住宅，預計銷售將於今年第四季完成。

We've also completed the bidding process for four additional programs with approximately 300 homesites. And we currently anticipate that these four programs will also close in the fourth quarter of this year. As we work closely with our builders to develop products in Valencia, it has become clear that the current fire insurance situation in California is requiring us to move away from attached programs to single-family homes and detached condominiums to meet current insurance underwriting restrictions to allow for more reasonable insurance premiums status. While the state is also working to address the current limits on insurance salability, our proactive approach will allow us to continue to meet the demand for housing in California.

我們也完成了另外四個項目的招標過程，涉及約 300 個住宅區。我們目前預計這四個項目也將在今年第四季結束。當我們與瓦倫西亞的建築商密切合作開發產品時，很明顯，加州當前的火災保險情況要求我們從附屬項目轉向單戶住宅和獨立公寓，以滿足當前的保險承保限制，以允許以獲得更合理的保費狀況。雖然該州也在努力解決當前保險銷售的限制，但我們積極主動的做法將使我們能夠繼續滿足加州的住房需求。

Finally, we continue to work Los Angeles County and other agencies to perfect the entitlements for our future development areas, which will allow for delivery of thousands of additional homesites and commercial acreage that will add much-needed supply to this land-constrained market. While the state is in passing a variety of new laws in effort to expedite delivery of housing, the regulatory approval process remains challenging to get completed in a timely manner. That said, we have been in this business a long time. With our proven track record of delivering first-class master-planned communities, we hope to finalize these approval processes with a reasonable balance between expediency and feasible conditions.

最後，我們繼續與洛杉磯縣和其他機構合作，以完善我們未來開發區域的權利，這將允許交付數千個額外的住宅用地和商業面積，從而為這個土地有限的市場增加急需的供應。儘管該州正在通過各種新法律以加快住房交付速度，但及時完成監管審批流程仍然具有挑戰性。也就是說，我們從事這個行業已經很久了。憑藉我們在提供一流總體規劃社區方面的良好記錄，我們希望在權宜之計和可行條件之間取得合理平衡，最終完成這些審批流程。

Turning to San Francisco, I'm happy to report that the City, County and other applicable regulatory agencies have initiated the public approval process to rebalance the entitlements between our two San Francisco communities: Candlestick and the Shipyard. As I discussed before, we are seeking the rebalancing to enable the development of Candlestick as a standalone project. This rebalancing will allow us to begin the development at Candlestick without having to wait for the Navy to complete these remediation activities in the Shipyard.

談到舊金山，我很高興地向大家報告，市、縣和其他適用的監管機構已啟動公眾審批程序，以重新平衡舊金山兩個社區（Candlestick 和 Shipyard）之間的權利。正如我之前討論的，我們正在尋求重新平衡，以使 Candlestick 能夠作為一個獨立專案進行開發。這種重新平衡將使我們能夠在 Candlestick 開始開發，而不必等待海軍在造船廠完成這些修復活動。

With the current momentum to complete the rebalancing, we're now turning our efforts to identifying a partner to work with us on this amazing piece of property to begin the process of creating a larger mixed-use communities that have always been envisioned for these irreplaceable sites along the San Francisco Bay, starting with Candlestick. We expect that a properly constructed partnership can work much like our Great Park partnership, with capital partners working closely with our management oversight team. This coordinated engagement will focus on maximizing value and executing a well-crafted development plan. I've asked Mike Alvarado to briefly describe the workings of our Great Park partnership, which has driven this extraordinary performance as a model for future Five Point opportunities.

憑藉當前完成重新平衡的勢頭，我們現在正在努力尋找合作夥伴與我們合作開發這塊令人驚嘆的房產，以開始創建更大的混合用途社區的過程，這些社區一直是這些不可替代的社區的願景舊金山灣沿岸的景點，從Candlestick 開始。我們期望建構得當的合作夥伴關係能夠像我們的 Great Park 合作夥伴關係一樣運作，資本合作夥伴與我們的管理監督團隊密切合作。這種協調一致的參與將側重於價值最大化和執行精心設計的發展計劃。我請 Mike Alvarado 簡要介紹我們與 Great Park 合作夥伴關係的運作情況，這種合作關係推動了這一非凡業績，成為未來五點機遇的典範。

Let me conclude by saying our second quarter has seen continuing progress on our three main priorities: generating revenue and positive cash flow, controlling SG&A costs, and managing capital spend to match near-term revenue opportunities. Additionally, our entire team is focused on progressing entitlements for our next neighborhoods in Valencia and moving Candlestick forward through their balancing process and beginning development. While economic and geopolitical events may continue to impact the financial markets, homebuyers in our markets continue to show interest in our communities, and we believe that pent-up demand continue to be a driving force for our land sales to builders.

最後，我要說的是，我們第二季度在三個主要優先事項上取得了持續進展：創造收入和正現金流、控制銷售、一般行政費用以及管理資本支出以匹配近期收入機會。此外，我們整個團隊專注於為巴倫西亞的下一個社區爭取權利，並透過平衡過程和開始開發推動 Candlestick 向前發展。儘管經濟和地緣政治事件可能繼續影響金融市場，但我們市場上的購屋者繼續對我們的社區表現出興趣，我們相信被壓抑的需求仍然是我們向建築商出售土地的推動力。

Land development is a very long game in California that has structurally produced a superior supply shortage. Our efforts today are ensuring we are well-positioned within that long game while recognizing the importance of creating and maintaining shareholder values.

在加州，土地開發是一場漫長的遊戲，從結構上造成了嚴重的供應短缺。我們今天的努力是確保我們在這場持久戰中處於有利地位，同時也意識到創造和維護股東價值的重要性。

Now let me turn it over to Mike, who will briefly discuss our partnership experience and then to Kim, who report on our financial results and will provide some limited guidance for the remainder of the year.

現在讓我把它交給麥克，他將簡要討論我們的合作經驗，然後交給金，他報告我們的財務業績，並將為今年剩餘時間提供一些有限的指導。

Thanks, Dan. In the past you have heard us talk about the lifecycle of our three communities and where each one of them stands in terms of its development status. The Great Park is clearly the most mature of our communities in terms of development and revenue generation and has proven year after year, the value creation within this community.

謝謝，丹。過去，您曾聽過我們談論我們三個社區的生命週期以及每個社區的發展狀況。就開發和創造收入而言，大公園顯然是我們社區中最成熟的，並且年復一年地證明了該社區內的價值創造。

What is more interesting about the Great Park, however, is its organizational and operational structure that we believe has resulted in excellent performance. The Great Park is the one master-planned community asset in which we own a minority capital interest and operate under a joint venture management structure. We operate and manage the Great Park Venture alongside our other capital partners with whom we engage on a weekly basis in order to maximize value and returns and to provide a built-in system of accountability.

然而，大公園更有趣的是它的組織和營運結構，我們認為它帶來了出色的績效。Great Park 是一項總體規劃的社區資產，我們擁有少數股權並在合資管理結構下運作。我們與其他資本合作夥伴一起營運和管理 Great Park Venture，我們每週都會與他們合作，以實現價值和回報最大化，並提供內建的問責制。

Our partners provide their own unique perspectives on a variety of matters when dealing with developments of this scale. And together, with aligned interests, we have executed our plan with continuously improved bottom-line performance. So we believe this is a structural advantage to our existing business model.

在處理如此規模的發展時，我們的合作夥伴對各種問題提供了自己獨特的視角。憑藉一致的利益，我們共同執行了我們的計劃，並不斷提高了底線績效。因此，我們認為這是我們現有業務模式的結構性優勢。

As I mentioned, at the Great Park, we own an equity interest, but we also provide management services to the venture, and we earn an incentive promoted interest for excellent performance. We are paid for our management services through a stipulated management fee that allows us to recover our costs for delivering these services plus that incentive compensation component that promotes -- that has delivered significant revenue to an earnings for the company.

正如我所提到的，在大公園，我們擁有股權，但我們也為企業提供管理服務，並且我們因出色的表現而獲得激勵提升的利息。我們透過規定的管理費獲得管理服務的報酬，該管理費使我們能夠收回提供這些服務的成本，再加上激勵性薪酬部分，這為公司帶來了可觀的收入。

We believe this structure and equity interests, coupled with a management services component, is one that can be repeated in the future not only within our other existing communities but also in future projects as we consider the growth of Five Point beyond our existing communities. We are enthusiastic about this business model and believe it can be replicated.

我們相信，這種結構和股權，加上管理服務組成部分，將來不僅可以在我們其他現有社區內重複，而且可以在未來的項目中重複，因為我們考慮到五點在現有社區之外的增長。我們對這種商業模式充滿熱情，並相信它可以複製。

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. Management fee income offsets our SG&A, while a promoted economic interest aligns interests while embedding a system of accountability to drive performance.

引入資本合作夥伴減少了我們的資本投資，並為五點提供了在精心設計的合作夥伴計劃下轉向輕資產資產負債表模式的機會。管理費收入抵消了我們的銷售管理費用，而促進的經濟利益則使利益保持一致，同時嵌入問責制度以推動績效。

At Valencia, while there is more work to be done to advance our entitlements, once achieved, we expect to engage in a possible venture arrangement like the Great Park. With approvals in place, we view Valencia as no different in the Great Park in terms of potential for engagement with partners who can add value and also share in the development life cycle as this community matures.

在巴倫西亞，雖然還有更多工作要做，以推進我們的權利，但一旦實現，我們希望參與可能的風險安排，例如大公園。獲得批准後，我們認為巴倫西亞在與合作夥伴的合作潛力方面與大公園沒有什麼不同，這些合作夥伴可以增加價值，並隨著社區的成熟分享開發生命週期。

In San Francisco, as you know from our prior calls, we have been talking about a partner for some time now. As we finalize our entitlement rebalancing efforts, that accomplishment will provide a catalyst for advancing conversations with potential venture partners.

在舊金山，正如您從我們之前的電話中了解到的那樣，我們已經談論合作夥伴有一段時間了。當我們最終完成權利再平衡工作時，這項成就將為推動與潛在風險合作夥伴的對話提供催化劑。

We have a proven track record with the Great Park Venture whose members have been seen -- who have seen rising returns over the past several years, driven by our management working together with their active engagement. 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. We hope to have more to report on this in the near future.

我們與 Great Park Venture 有著良好的合作記錄，在我們管理層的共同努力和他們的積極參與的推動下，他們的回報在過去幾年中不斷上升。我們相信，當我們尋找公司未來發展的其他機會時，我們可以利用這種商業模式。我們希望在不久的將來有更多關於此事的報導。

Now let me turn it over to Kim to report on our financial results for the quarter.

現在讓我向 Kim 報告我們本季的財務表現。

Thank you, Mike. Let me give you a little more background on our operating results. For the second quarter of 2024, we reported consolidated net income of $38.2 million, which was generated primarily from $47.2 million of revenue from incentive management compensation, and $15.5 million of equity in earnings from our investment in the Great Park Venture.

謝謝你，麥克。讓我向您介紹一下我們的經營業績的更多背景資訊。2024 年第二季度，我們報告的合併淨利潤為 3,820 萬美元，主要來自激勵管理薪酬的 4,720 萬美元收入，以及我們對 Great Park Venture 投資的 1,550 萬美元收益權益。

As Dan noted, the Great Park Venture's income for the quarter was largely generated by the sale of 105 homesites on 12.3 acres of land with a sale price of $96.1 million and a profit margin of 70% before closing costs. You will note that the profit margin improved from last quarter's 60%. This sale comes out to $7.8 million per acre.

正如 Dan 指出的那樣，Great Park Venture 本季的收入主要來自於出售 12.3 英畝土地上的 105 處住宅，售價為 9,610 萬美元，成交成本前利潤率為 70%。您會注意到，利潤率較上季的 60% 有所提高。此次出售的價格為每英畝 780 萬美元。

The venture also recognized $6.4 million of profit participation revenue related to prior-year land sales and $36.6 million of price participation revenue associated with last May's land sale of 798 homesites, which is now the Luna Park community. I will have more to say about that additional price participation revenue later in my comments.

該合資企業還確認了與上一年土地銷售相關的 640 萬美元利潤參與收入，以及與去年 5 月 798 個住宅區（現為 Luna Park 社區）土地銷售相關的 3,660 萬美元價格參與收入。我將在稍後的評論中更多地談論額外的價格參與收入。

Turning back to Five Point's consolidated results. For the first six months of the year, we have recognized net income of $44.3 million. Our first-half results included $61.1 million of total revenue and equity in earnings from the Great Park Venture of $33.1 million. Consistent with our continued focus on managing our costs, our second quarter SG&A expense was [$2.2 million] compared to the prior-year second quarter of $12.7 million and $12.9 million in the first quarter of this year.

回到五點的綜合業績。今年前六個月，我們確認淨利為 4,430 萬美元。我們上半年的業績包括 6,110 萬美元的總收入和來自 Great Park Venture 的 3,310 萬美元的權益收益。與我們持續關注成本管理一致，我們第二季的 SG&A 費用為 [220 萬美元]，而去年第二季為 1,270 萬美元，今年第一季為 1,290 萬美元。

Now let me turn to liquidity and cash. We ended the quarter with $217.4 million of cash, as well as $125 million of availability on our revolving credit facility, resulting in total liquidity of $342.4 million. At the end of the quarter, our debt to total capitalization was 20.6%.

現在讓我談談流動性和現金。本季結束時，我們擁有 2.174 億美元的現金，以及 1.25 億美元的循環信貸額度，流動資金總額為 3.424 億美元。截至本季末，我們的債務佔總資本的比例為 20.6%。

I'll also give you a little more detail around our cash flow for the quarter and year to date. For the quarter, before debt service, we had positive cash flow of $3 million. For the year to date before debt service, including the senior note transaction costs, we had negative cash flow of $2.2 million. The significant sources of cash have been equity distributions from the Great Park Venture of $23.4 million for the quarter and $47.3 million year to date and incentive management compensation of $6.3 million for the quarter and $12.8 million to date.

我還將向您提供有關本季度和本年度迄今為止的現金流的更多詳細資訊。本季度，在還本付息之前，我們的正現金流為 300 萬美元。今年迄今為止，在還本付息之前，包括優先票據交易成本，我們的現金流量為 220 萬美元。現金的重要來源是 Great Park Venture 本季 2,340 萬美元和年初至今 4,730 萬美元的股權分配，以及本季 630 萬美元和年初至今 1,280 萬美元的激勵管理薪酬。

The significant uses of cash other than SG&A and debt service have been development costs at Valencia of $14 million for the quarter and $31.4 million year to date, which are largely related to entitlement activities and preparing for the sales expected to close in the fourth quarter. In addition, we incurred development costs at San Francisco of $7.3 million for the quarter and $8.4 million for the year that are largely associated with the rebalancing efforts and our litigation against Tetra Tech and the Navy.

除SG&A和償債外，現金的主要用途是瓦倫西亞本季的開發成本為1400萬美元，年初至今為3140萬美元，這主要與權利活動以及為預計在第四季度完成的銷售做準備有關。此外，我們在舊金山的開發成本本季為 730 萬美元，全年為 840 萬美元，這主要與重新平衡工作以及我們針對 Tetra Tech 和海軍的訴訟有關。

Last quarter, I took time to emphasize the significance of the Great Park Venture in our financial results. This quarter, it continued to stand out in two particular places. Firstly, as an unconsolidated joint venture, we report our proportionate share of the venture's earnings and receive distributions for our ownership percentage interest. Secondly, we provide management services, as Mike discussed, to the Great Park Venture. As compensation for these management services, we receive a fixed monthly base fee and incentive management compensation, which is expressed generally as 9% of the distributions that the venture makes to its members.

上個季度，我花時間強調了 Great Park Venture 對我們財務表現的重要性。本季度，它在兩個特別的地方繼續表現突出。首先，作為一家未合併的合資企業，我們報告我們在該企業收益中所佔的比例份額，並收到我們所有權百分比權益的分配。其次，正如麥克所討論的，我們向 Great Park Venture 提供管理服務。作為這些管理服務的報酬，我們每月收取固定的基本費用和激勵性管理報酬，通常表示為企業分配給其會員的 9%。

We often give specific information about the Great Park Venture's activities because of the significant impact they have on Five Point's results. When we do so, we try to advise the listener that we are speaking about the Great Park Venture and not Five Point operations.

我們經常提供有關 Great Park Venture 活動的具體信息，因為這些活動對 Five Point 的業績產生重大影響。當我們這樣做時，我們試圖告訴聽眾我們正在談論大公園風險投資而不是五點行動。

Now I'd like to give you a little bit more background about the Great Park Venture's contributions to this quarter's results. First, in addition to the land sale at the Great Park Venture during the quarter as I noted earlier, the venture also recognized additional revenue as variable price participation consideration.

現在，我想向您提供更多有關 Great Park Venture 對本季業績貢獻的背景資訊。首先，除了我之前指出的本季 Great Park Venture 的土地出售外，該合資企業還確認了額外收入作為可變價格參與對價。

As you will recall, as I mentioned earlier, in May of 2023, the Great Park Venture recognized revenue of $357.8 million from the sale of 798 homesites on approximately -- excuse me -- on approximately 84 acres of land, which we now call the Luna Park community. The land sale agreement was comprised of a fixed amount paid at closing and a price participation component to be paid from future homebuilder home sales. Accordingly, the revenue recognized consisted of $214 million of paid at closing plus $143 million for recognition of a contract asset -- you might think of it as a receivable -- representing the venture's estimate of variable consideration from future price participation payments.

您可能還記得，正如我之前提到的，2023 年5 月，Great Park Venture 透過出售798 個宅基地確認了3.578 億美元的收入，這些宅基地佔地大約（對不起）大約84 英畝的土地，我們現在稱之為「土地」。土地銷售協議包括成交時支付的固定金額和未來房屋建築商房屋銷售中支付的價格參與部分。因此，確認的收入包括結束時支付的 2.14 億美元加上確認合約資產的 1.43 億美元（您可能將其視為應收帳款），代表企業對未來價格參與付款的可變對價的估計。

The homebuilder is now actively selling homes in the community and based upon actual experience and near-term forecasts of future home pricing, the venture made the assessment that under applicable housing -- under applicable accounting guidelines, it was appropriate to increase the estimate of variable consideration by $36.6 million to a total of $179.7 million.

該房屋建築商目前正在社區積極銷售房屋，根據實際經驗和對未來房屋定價的近期預測，該企業做出評估，在適用的住房——適用的會計準則下，增加變量的估計是適當的代價增加3,660 萬美元，總計1.797 億美元。

Now, the other area where the Great Park Venture's performance influenced our consolidated results this quarter is with respect to the $47.2 million of incentive management compensation revenue that Five Point is reporting. Here also, we are required to estimate the amount of incentive compensation that Five Point expects to receive under our management agreement and to report revenue as it is earned by recording a contract asset which may be in advance of receiving the actual payment.

現在，Great Park Venture 的業績影響我們本季合併業績的另一個領域是 Five Point 報告的 4,720 萬美元的激勵管理薪酬收入。在這裡，我們還需要估計 Five Point 預計根據我們的管理協議獲得的激勵補償金額，並報告透過記錄合約資產賺取的收入，該收入可能在收到實際付款之前。

In order to do so, we have to estimate the activity of the venture and project distributions that the activity will generate. If there are significant changes in that estimate, it can lead to adjustments to the amounts previously recognized since the venture's Luna Park sale in May of 2023 at a base price of $4.3 million acre, which is currently at $4.7 million acre with the additional variable price participation consideration that I just discussed, the venture had a sale in the first quarter at $6.4 million per acre and the sale in the second quarter that was just reported at $7.8 million per acre.

為此，我們必須估計風險投資的活動以及該活動將產生的項目分佈。如果該估計發生重大變化，可能會導致自該合資企業於 2023 年 5 月以 430 萬美元的基本價格出售 Luna Park 以來確認的金額進行調整，而目前的附加可變價格為 470 萬美元考慮到我剛才討論的參與因素，該合資企業第一季的銷售額為每英畝640 萬美元，第二季的銷售額剛剛報告為每英畝780 萬美元。

In Dan's comments, he mentioned that we are currently under contract for a sale expected to close in December at $9.6 million per acre. Partly as a result of this trend of increasing land values and other market factors, we adjusted our estimates of future distributions and the resulting increase gave rise to the majority of the $47.2 million in revenue recognized by Five Point this quarter from incentive management compensation for our management of the Great Park Venture.

Dan 在評論中提到，我們目前正在簽訂銷售合同，預計將於 12 月以每英畝 960 萬美元的價格成交。部分由於土地價值增加的趨勢和其他市場因素，我們調整了對未來分配的估計，由此產生的增長導致了五點本季度從激勵管理薪酬中確認的 4720 萬美元收入中的大部分。 Venture 的管理。

As a result of this additional revenue as of June 30, Five Point has a contract asset for expected future incentive management compensation payments of 104.6 million that will be received when future distributions to members occur. These cumulative adjustments to revenue are attributable to changes in estimates and may not be reoccurring in nature.

由於截至 6 月 30 日的額外收入，Five Point 擁有預計未來激勵管理補償金的合約資產 1.046 億美元，這些補償金將在未來向會員分配時收到。這些對收入的累積調整是由於估計的變化而造成的，本質上可能不會重複發生。

Now for some limited guidance, the second quarter performed better than we expected, which was primarily attributable to the strong performance at the Great Park. Currently, we are not expecting to close any residential land sales in the third quarter and therefore, expect to have a small reported loss of $5 million to $10 million for the quarter. This will turn around in the fourth quarter as we finish the year strong with sales at both Valencia and the Great Park that Dan mentioned earlier.

現在，就一些有限的指導而言，第二季的表現優於我們的預期，這主要歸功於大公園的強勁表現。目前，我們預計第三季不會完成任何住宅用地銷售，因此預計該季度將出現 500 萬至 1,000 萬美元的小額虧損。這種情況將在第四季度扭轉，因為我們在巴倫西亞和丹之前提到的大公園的銷售表現強勁，以強勁的業績結束了這一年。

Therefore, we expect to end the year with annual net income of over $100 million and a cash balance in excess of $300 million. It remains critical for us to stay focused on our strategic priorities of generating revenue, controlling our expenses and carefully managing our capital spend to match near-term revenues, and we are committed to those priorities.

因此，我們預計到年底，年淨利潤將超過 1 億美元，現金餘額將超過 3 億美元。對我們來說，繼續專注於創造收入、控制開支和仔細管理資本支出以匹配近期收入的策略重點仍然至關重要，我們致力於這些優先事項。

With that, I will return the call back to the operator.

這樣，我會將電話交回接線生。

Thank you. We'll now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員說明）

Alan Ratner, Zelman & Associates.

艾倫·拉特納，Zelman & Associates。

Hey, guys, good afternoon. Congrats on the continued progress. Great to see and thank you for all the additional color this quarter. Very helpful given all the moving pieces.

嘿，夥計們，下午好。祝賀您不斷取得進步。很高興看到並感謝您本季提供的所有額外顏色。考慮到所有的移動部件，非常有幫助。

My first question, I just want to make sure I understand the management service revenue this quarter, and I think you explained it well, but am I right to think of this quarter's revenue as more of kind of a gross up, and going forward, assuming there's no major changes in your estimates from this point that the quarterly run rate would look more similar to kind of what it's been over the last several years -- kind of in that $10 million per quarter range or is this kind of resetting a higher bar and we should think about, for modeling purposes, a higher number going forward?

我的第一個問題，我只是想確保我了解本季的管理服務收入，我認為你解釋得很好，但我認為本季度的收入更多的是整體增長，並且展望未來，我是否正確？假設從此時起您的估計沒有發生重大變化，那麼季度運行率看起來會更類似於過去幾年的情況——大約在每季度1000 萬美元的範圍內，或者是這種重置更高的值出於建模目的，我們應該考慮未來會有更高的數字嗎？

Thanks, Alan. Always good to hear from you. Let me ask Kim to answer that question before I make sure we get from the authority.

謝謝，艾倫。很高興收到你的來信。在我確保我們得到權威人士的答覆之前，讓我請金回答這個問題。

Yes, Alan, you identified it. It's a catch up because of the additional projected income that we're expecting. And so there's a catch-up, but it will go back to a more regular flow, as you mentioned.

是的，艾倫，你認出它了。由於我們預期會有額外的預期收入，所以這是一個趕上的事情。所以會有一個追趕，但正如你所提到的，它會回到更正常的流程。

Got it. Okay. That's helpful. All right. Two more questions for me, if I can. Number one, Dan, you mentioned some of the issues you're facing with the fire insurance in the state and changing, I guess, a little bit, the plans related to the product you're bringing forward. You mentioned Valencia, so I wasn't -- first of all, I wasn't sure if that applies to Great Park as well.

知道了。好的。這很有幫助。好的。如果可以的話，還有兩個問題問我。第一，丹，您提到了您在該州的火災保險方面面臨的一些問題，並且我想稍微改變了與您提出的產品相關的計劃。你提到了瓦倫西亞，所以我沒有——首先，我不確定這是否也適用於大公園。

But I guess my question is, if the plans at least in the near term are going to be skewed more towards a detached product, which is what I think you said, does that change the density opportunity within the community, meaning -- are we now -- should we think about a smaller number of homesites over the length of the community if you're skewing more towards detached?

但我想我的問題是，如果至少在短期內的計劃將更偏向獨立的產品，這就是我認為你所說的，這是否會改變社區內的密度機會，也就是說——我們是嗎？ 現在——如果您更傾向於獨立住宅，我們是否應該考慮在社區範圍內減少住宅數量？

Well, those are actually very good questions. First, I have really not seen any fire insurance issues in the Great Park, just because of where it's at and how it's situated. In Valencia because of its new development and it's on the edge of some open space areas, it does -- there is an issue -- a sensitive issue.

嗯，這些其實是非常好的問題。首先，我真的沒有在大公園看到任何火災保險問題，只是因為它的位置和位置。在巴倫西亞，由於它的新發展，而且它位於一些開放空間區域的邊緣，因此確實存在一個敏感問題。

There's fire insurance available, but the premiums have increased. So working with the builders, what they found in the attached projects, the higher HOA dues make the whole that home and attached home uncompetitive from a cost perspective. So we're still moving with density, but they're using a high-density motor courts. Duplexes get separate insurance; they can still use duplexes.

有火災保險，但保費增加了。因此，與建築商合作，他們在附屬項目中發現，較高的 HOA 費用使整個房屋和附屬房屋從成本角度來看缺乏競爭力。所以我們仍然在以密度移動，但他們正在使用高密度的汽車場。複式公寓有單獨的保險；他們仍然可以使用複式公寓。

So what we really have gone away from as the kind of 10-unit, 11-unit, high-density buildings. Those are good for the market, because they allowed us to have a lower price point for people to get entry into the market. So it's a segment that we actually liked. And we do expect the state to sort out what's happening on fire insurance, and we'll be able to go back to that type of product.

所以我們真正放棄的是那種 10 單元、11 單元的高密度建築。這些對市場有利，因為它們使我們能夠以較低的價格讓人們進入市場。所以這是我們真正喜歡的部分。我們確實希望國家能夠解決火災保險方面的問題，我們將能夠重新推出此類產品。

Once again, it's really that entry-level product that we do think is important to the market. As far as the -- we have so much land and so much time is still there. Our units really can move around. So I think we'll -- we would, at this point, still anticipate we'd have very similar unit counts, because we think this is a temporary issue.

再說一次，我們確實認為入門級產品對市場很重要。就我們而言，我們還有那麼多土地，還有那麼多時間。我們的單位確實可以四處移動。所以我認為我們會——在這一點上，我們仍然預計我們會有非常相似的單位數量，因為我們認為這是一個暫時的問題。

But once again, the current market condition and the HOA dues are really material. So that's really why we've kind of -- the builders have come to us and said, we still want the land. We can still pay the same amount for land, but we do need to make some adjustments of products. So we've just been very proactive in getting ahead of that issue. But I think that long term, it fixes itself, and we probably end up with similar unit counts. But one of the -- yeah.

但再一次，目前的市場狀況和 HOA 費用確實很重要。所以這就是為什麼我們——建築商來找我們說，我們仍然想要這塊土地。我們仍然可以支付相同的價格購買土地，但我們確實需要在產品上做出一些調整。因此，我們一直非常積極主動地解決這個問題。但我認為從長遠來看，它會自行修復，我們最終可能會得到類似的單位數量。但其中之一——是的。

That's really, Dan. I appreciate that. And then -- sorry, were you going to say something else there?

確實如此，丹。我很欣賞這一點。然後——抱歉，你還要說點別的嗎？

No, I was going to say it doesn't really -- it hasn't really had an impact in any of our valuations on land. We still, obviously, we think about it in units, but we're always selling land. And I'm going to use all the same land, and it hasn't had an impact on valuation at all. So it's really just about having a broader segmentation in the market, which we really like to have.

不，我想說的是，這並沒有真正影響我們對土地的估值。顯然，我們仍然以單位為單位來考慮這個問題，但我們總是在出售土地。我將使用所有相同的土地，這對估值完全沒有影響。因此，這實際上只是在市場上進行更廣泛的細分，這是我們真正希望的。

Got it. This wasn't my other question, but I guess just to follow up on that then, if you're kind of eliminating that entry-level price point -- and maybe you can say what that was -- now what is kind of at least the way you see it in the near term, your entry-level price point given this shift? Like how much has it gone up by?

知道了。這不是我的其他問題，但我想只是為了跟進這個問題，如果你想消除入門級價格點 - 也許你可以說那是什麼 - 現在是什麼至少從您近期的角度來看，考慮到這種轉變，您的入門價格點是多少？例如漲了多少？

With some of the density that we were able to get in detached and also with duplexes, we probably -- when we opened up the community a couple of years ago -- and a lot of things happened a couple of years ago, we were able to deliver high-density detached product under $500,000 a home. That was naturally moving up through the pandemic and through cost increases and things of that nature.

憑藉我們能夠達到的獨立住宅和複式住宅的一些密度，我們可能——幾年前開放社區時——幾年前發生了很多事情，我們能夠提供每戶 50 萬美元以下的高密度獨立式產品。透過大流行、成本增加和類似性質的事情，這一數字自然會上升。

But I would say what we've probably have done has probably moved from that high-5s, low-6, more like high-6, low-7 as far as entry level, but that's hopefully a temporary situation, and we'll be able to bring back. In our future communities, we still have real opportunities for more density and more variability in the products. So we hope we'll be able to bring that back. But I would tell you now if you're thinking about it, it's probably somewhere around the mid-6s.

但我想說的是，我們可能所做的可能已經從高 5、低 6 轉向了入門級的高 6、低 7，但這希望只是暫時的情況，我們將能夠帶回來。在我們未來的社區中，我們仍然有真正的機會來提高產品的密度和多樣性。所以我們希望我們能夠把它帶回來。但我現在告訴你，如果你仔細想想的話，它可能在 6 年代中期左右。

Thank you. Matt Jackson, Mycor Capital.

謝謝。馬特傑克遜，Mycor Capital。

Hey, guys, thanks for taking the question. Just two quick ones and congratulations on the progress on Candlestick. Just curious, did you also mention you would look to do a similar structure for Valencia and kind of move back to being more of a joint venture? And then I guess on both of those projects, like how should we think about that?

嘿，夥計們，謝謝你提出問題。簡單說兩句，恭喜 Candlestick 的進展。只是好奇，您是否也提到您會為瓦倫西亞建立類似的結構，並更像是一家合資企業？然後我想對於這兩個項目，我們該如何思考？

Are you just going to look for a partner -- like a partnership there or is there going to be some capital that could come into the business to help you guys. Obviously, you have this expensive debt still outstanding. Just kind of curious like how you think all the moving parts will shake out maybe a year in the future and what you ultimately hope the company looks like?

你只是想尋找一個合作夥伴嗎——比如那裡的合作夥伴，或者是否會有一些資本可以進入這個行業來幫助你們。顯然，你還有這筆昂貴的債務未償還。只是有點好奇，例如您認為一年後所有的活動部件將如何變化，以及您最終希望公司是什麼樣子？

Well, Matt, thank you for that question. First, on both of those communities, Candlestick and Valencia, we are working from a entitlement-first strategy. We think that before we look at partners or additional capital joining us, we need to deliver on the entitlement. And so both of those are our highest priorities for both of those communities.

嗯，馬特，謝謝你提出這個問題。首先，在 Candlestick 和巴倫西亞這兩個社區中，我們都遵循權利優先的策略。我們認為，在尋找合作夥伴或額外資本加入我們之前，我們需要兌現權利。因此，對於這兩個社區來說，這兩者都是我們的最高優先事項。

And so Valencia has got a longer runway to get to that additional entitlement that we're working on. As I noted, Candlestick and City and County of San Francisco, we're all working hand-in-hand to move that towards completion. And we've had a number of folks reach out to us in the past.

因此，巴倫西亞擁有更長的跑道來獲得我們正在努力的額外權利。正如我所指出的，Candlestick 以及舊金山市和縣，我們正在攜手努力，以實現這一目標。過去有很多人聯絡過我們。

So there's not any one particular structure we're looking at. And once again, it's going to be making sure that we do whatever's best in creating the most value for our shareholders. So we haven't tried to land on a structure.

所以我們沒有考慮任何一種特定的結構。再次強調，我們將確保盡一切努力為股東創造最大價值。所以我們還沒有嘗試降落在一個結構上。

As Mike indicated, we do have a model that has worked very well for us here at the Great Park. So that's probably how we lean. But part of it is going to be seen who we end up working with in that area. So from a pure structure perspective, the idea would be to attract a partnership that would include capital coming into the company.

正如麥克所指出的，我們確實有一個在大公園非常適合我們的模型。所以這可能就是我們的傾向。但其中一部分取決於我們最終在該領域與誰合作。因此，從純粹的結構角度來看，我們的想法是吸引合作夥伴，其中包括資本進入公司。

Great. That's super helpful. And then I guess just more on a housekeeping item, actually, looks like sometimes you reported the homesites at Valencia and other times not -- haven't been following the name that. Just curious, does that imply no homesites were sold at Valencia this quarter? Am I correct?

偉大的。這非常有幫助。然後我想更多的是關於家務管理項目，實際上，看起來有時您報告了瓦倫西亞的住所，有時則沒有 - 沒有遵循這個名稱。只是好奇，這是否意味著本季度巴倫西亞沒有出售任何住宅？我說得對嗎？

This quarter, we didn't close any sales at Valencia. Any land sales to builders you're talking about --Is that correct?

本季度，我們沒有在瓦倫西亞完成任何銷售。您所說的任何向建築商出售土地的行為——正確嗎？

Yeah. Land sales to builder. Yes.

是的。土地出售給建築商。是的。

We did not close any land sales to builders this quarter at Valencia. Those -- the sales we have queued up there, the ones we're talking about will all close in the fourth quarter.

本季我們沒有在巴倫西亞向建築商出售任何土地。這些——我們在那裡排隊的銷售，我們正在談論的銷售將在第四季度全部結束。

[Kyle Chung], private investor.

[Kyle Chung]，私人投資者。

Hi. I actually have kind of a big picture question, if I can. Dan, I think you and your team for the past 2.5 years, you guys have done a great job highlighting the valuable asset that are in the company. You've lowered SG&A. You've pushed out the debt maturity. You've done all these things, and you're selling to commercial residential and all these things. And despite all that, your stock is still trading at $3 a share. The public investors just don't seem to care.

你好。如果可以的話，我實際上有一個大局問題。Dan，我認為您和您的團隊在過去 2.5 年裡做得很好，突出了公司的寶貴資產。您降低了 SG&A。你已經推遲了債務到期日。你已經做了所有這些事情，並且你正在向商業住宅和所有這些事情銷售。儘管如此，您的股票交易價格仍為每股 3 美元。公共投資者似乎並不關心。

So my question is that, what's the benefit to staying public? I guess another way it is -- why not launch a formal process to see if there are private investors who will value these assets at something that's closer to book value than what the public investors are doing?

所以我的問題是，保持公開有什麼好處？我想另一種方式是——為什麼不啟動一個正式的流程來看看是否有私人投資者會以比公共投資者更接近賬面價值的價格對這些資產進行估值？

Well, Kyle, thank you for the question. I'll kind of just start with -- one of the things you should always know is that our Board of Directors is always very engaged. And if there are opportunities, as you mentioned, that would come towards us, our Board would certainly take a look at those opportunities. And once again, we're always about trying to support our shareholders.

好吧，凱爾，謝謝你的提問。我首先要說的是——你應該永遠知道的一件事是我們的董事會總是非常忙碌。正如您所提到的，如果我們有機會，我們的董事會肯定會考慮這些機會。再說一遍，我們始終致力於支持我們的股東。

But the -- one of the things that we do understand is that we don't really get to set the price in the market. And you're right; we're trying to -- there's a lot of good things going on here, and we're hopeful that the market will, at some point, recognize some of those things.

但我們確實了解的一件事是，我們無法真正在市場上設定價格。你是對的；我們正在努力——這裡正在發生很多好事，我們希望市場在某個時候能夠認識到其中的一些事情。

We're really focused on -- we've been focused on G&A and cash and capital outlay. And so we think that will sometime, hopefully, in the market, be recognized. But going back to your original question, we are always open to considering all options; it's just what presents itself to us.

我們真正關注的是——我們一直在關註一般管理費用以及現金和資本支出。因此，我們認為，希望有一天，這一點能夠在市場上得到認可。但回到你最初的問題，我們始終願意考慮所有選擇；這就是呈現在我們面前的東西。

Well, I guess a different way to ask the question is, I think what I'm hearing you say is you are waiting for like an inbound inquiry. And I mean, there's a -- you're doing all the right things. You're pulling all the right levers, and the public investors don't seem to care. And you also -- being a public company, you incur costs along with that. And there just doesn't seem to be any strategic reason to have a small, low spot trading in the public market, why not formally launch a process so the -- let the private investors out there know that the company is exploring options.

好吧，我想問這個問題的另一種方式是，我想我聽到你說的是你正在等待類似的入站詢問。我的意思是，你正在做所有正確的事情。你拉動了所有正確的槓桿，而公共投資者似乎並不關心。作為一家上市公司，你也會隨之產生成本。而且似乎沒有任何策略理由在公開市場上進行小額、低價的現貨交易，為什麼不正式啟動一個流程，讓私人投資者知道該公司正在探索選擇。

Well, the team you have here on the phone today, we really focus day-to-day on running the business. But I can just assure you our Board has considered all options. And we're not waiting necessarily for inbound offers. The Board has and continues to consider all options that are available to them.

好吧，今天打電話的團隊，我們真的專注於日常業務運作。但我可以向您保證，我們的董事會已經考慮了所有選擇。我們不一定要等待入境報價。董事會已經並將繼續考慮所有可用的選擇。

[Robert Cohen], private investor.

[羅伯特·科恩]，私人投資者。

Yeah, hi. My first question relates to the 75%-owned Gateway Commercial Venture. I just wanted to clarify one thing on that venture. I believe a few years ago, they said that that venture owns 50 acres next to your office building. Is that correct? And if so, are you planning on selling those acres at some point?

是的，嗨。我的第一個問題涉及擁有 75% 股權的 Gateway Commercial Venture。我只是想澄清有關該項目的一件事。我相信幾年前，他們說該合資企業在您的辦公大樓旁擁有 50 英畝的土地。這是正確的嗎？如果是這樣，您是否計劃在某個時候出售這些土地？

So Robert, I might have Kim talk about that, but understand what that really is is there's a campus here and part of those acres you're looking at as part of an REA, it's a parking lot, it's the other assets aspects of the overall campus.

所以羅伯特，我可能會讓Kim 談談這個，但要明白這到底是什麼，這裡有一個校園，你所看到的那些土地的一部分是REA 的一部分，它是一個停車場，它是學校的其他資產方面。

But let Mike actually -- Mike can probably speak to that. He's been here longer, and when the building was built and purchased.

但事實上，麥克可能可以談論這一點。他在這裡待的時間更長，也是在大樓建成購買的時候。

Yeah, this campus was originally sold to Broadcom. It was 70 acres where they're going to build a 2-million-square-foot campus. And in 2017, we acquired that campus back and in that venture -- that venture in which we own the 75% interest.

是的，這個園區最初賣給了博通。他們將在這片 70 英畝的土地上建造一個 200 萬平方英尺的校園。2017 年，我們在該合資企業中收購了該園區－我們擁有該合資企業 75% 的權益。

So the campus has really been envisioned as an R&D and now, of course, as City of Hope R&D plus cancer/medical uses. So the acreage is really living on a campus ready for future commercial development.

因此，園區確實被設想為研發中心，當然，現在是希望之城研發中心以及癌症/醫療用途。因此，該面積確實是一個為未來商業開發做好準備的校園。

Okay. So at some point, you could be selling that?

好的。那麼在某個時候，你可以賣掉它嗎？

Yes.

是的。

Absolutely.

絕對地。

(multiple speakers) 75% owned; that could be quite valuable.

（多位發言者）擁有 75% 股權；這可能非常有價值。

Yeah. Now keep in mind that we already sold two other buildings that brought to -- a triple net investor; Broadcom is their tenant. And then we sold, of course, another building to City of Hope. So three of the four buildings are owned by other parties at this point.

是的。現在請記住，我們已經出售了另外兩棟建築，這帶來了——三重淨投資者；博通是他們的租戶。當然，然後我們又把另一棟大樓賣給了希望之城。因此，四棟建築中的三棟目前已歸其他方所有。

Okay. And my next question relates to the value of the land in Valencia. So I know, obviously, the land in the Great Parks has appreciated quite rapidly over the past year. I was wondering if you could comment on how much, if any, the land in Valencia has increased in value over the past year?

好的。我的下一個問題與巴倫西亞土地的價值有關。所以我知道，顯然，大公園的土地在過去的一年升值得相當快。我想知道您能否評論一下巴倫西亞的土地在過去一年中增值了多少（如果有的話）？

Well, Robert, one of the things that we've been working on in Valencia, just like we've been working on here at the Great Park, is really trying to work with our builders to be sure that we're developing and identifying the highest value land for that property. And I think we're, once again, with Great Park, much more mature -- one of our master plans.

羅伯特，我們在巴倫西亞一直在做的事情之一，就像我們在大公園所做的那樣，就是努力與我們的建設者合作，以確保我們正在開發和識別該財產的最高價值的土地。我認為，我們的大公園再次變得更加成熟——這是我們的總體規劃之一。

We've been able to really make some big changes quickly -- both kind of market and product-driven changes. In Valencia, we're doing the same thing, and we actually have seen land values increasing in Valencia but not to the same level as Great Park. And I think part of the process is there.

我們已經能夠真正快速地做出一些重大改變——包括市場和產品驅動的改變。在巴倫西亞，我們也在做同樣的事情，我們實際上看到巴倫西亞的土地價值在增加，但沒有達到與大公園相同的水平。我認為這個過程的一部分就在那裡。

There's certain fixed pieces that we can't change we have to stay with. And we're now -- in Great Park, we're fully into the areas where we can change all the pieces. Having been able to achieve that -- we haven't gotten to that point, I should say. We haven't got to that point in Valencia, but we expect to achieve it. But Irvine is always going to be a little bit of unique market, but we are seeing appreciation. And we're going to continue to work with the builders to find ways to create higher value for that land.

有些固定的部分我們無法改變，但我們必須堅持下去。現在，在大公園，我們完全進入了可以改變所有部分的領域。我應該說，我們已經實現了這個目標，但還沒有達到這一點。我們在瓦倫西亞還沒有達到這個目標，但我們希望能夠實現這一目標。但爾灣總是會成為一個有點獨特的市場，但我們看到了升值。我們將繼續與建築商合作，尋找為這片土地創造更高價值的方法。

Okay. And my last question relates to your largest shareholder, Lennar. I don't know if you can answer this question. But they're moving to an asset-light model. And I was just wondering if you know how Five Point fits into their plans. Will they be transferring? I believe they've 40% stake into a planned spin-off or will they be selling this stake? Do you have any knowledge about what they'll be doing?

好的。我的最後一個問題涉及你們最大的股東 Lennar。不知道你能否回答這個問題。但他們正在轉向輕資產模式。我只是想知道你是否知道五點如何融入他們的計劃。他們會轉行嗎？我相信他們在計劃的分拆中持有 40% 的股份，或者他們會出售這些股份嗎？你知道他們會做什麼嗎？

Robert, we do not.

羅伯特，我們沒有。

Okay. I wasn't sure. I know there's a lot of -- I know they've been going back and forth in their communications about their plans, but -- so you have no input on -- you have no knowledge of what's going to be taking place.

好的。我不確定。我知道有很多——我知道他們一直在就他們的計劃進行溝通，但是——所以你沒有任何意見——你不知道將要發生什麼。

Okay. I appreciate those are my only questions. Thank you.

好的。我很感激這是我唯一的問題。謝謝。

[Andrew Okon], private investor.

[安德魯·奧肯]，私人投資者。

Hi. Thank you very much for taking my question. My question is associated with Candlestick, and I read in the news recently that it appears that you guys are setting up to do approximately 7,000 residential units and the rest would be office and lab space. And I'm wondering, is that mix -- is that what the mix is going to be? Because obviously, office and lab seems like a pretty difficult market right now. Thank you very much.

你好。非常感謝您回答我的問題。我的問題與 Candlestick 有關，我最近在新聞中讀到，你們似乎正在準備建造大約 7,000 個住宅單元，其餘的將是辦公室和實驗室空間。我想知道，這種混合是不是就是這種混合？因為顯然，辦公室和實驗室現在似乎是一個相當困難的市場。非常感謝。

So Andrew, Candlestick and Hunters Point were designed as kind of a comprehensive community with kind of a preset amount of commercial square footage. And within that commercial square footage, there are certain leases that are allowed and a preset number of residential units. And all that we're doing right now, what we've been working with the City and County on -- because of the delays at Hunters Point, we needed flexibility because we -- early on before any anticipated delays, there was a strategy of how you would balance between the two, because we'd built them both concurrently.

因此，Andrew、Candlestick 和 Hunters Point 被設計為一個綜合性社區，具有預設的商業面積。在該商業面積內，允許某些租賃和預設數量的住宅單元。我們現在正在做的所有事情，我們一直在與市和縣合作的事情 - 由於獵人角的延誤，我們需要靈活性，因為我們 - 在任何預期的延誤之前，早就制定了一項策略如何在兩者之間取得平衡，因為我們是同時建構它們的。

But what happened with the delay is that we -- we can't build them both concurrently. So we really would -- are working with them. And we talk about the rebalancing; it really gives us flexibility to be able to meet the market. And if the market is more residential-oriented, it will be more residential. And if it's more commercial, it will be more commercial.

但由於延遲，我們無法同時建造它們。所以我們真的會——正在與他們合作。我們談再平衡；它確實為我們提供了滿足市場需求的靈活性。如果市場更加以住宅為導向，那麼它就會更加住宅化。如果它更商業化，那就更商業化。

But the type of commercial we're looking at there is really R&D. It isn't commercial office. It's something that needs different floor plates. It needs labs and different uses. There's a whole different market segment out there than what the traditional commercial office that you would think of.

但我們看到的廣告類型確實是研發。這不是商業辦公室。它需要不同的地板。它需要實驗室和不同的用途。那裡有一個與您想像的傳統商業辦公室完全不同的細分市場。

But the idea -- we don't have a set plan for our next development. What we're really doing is working with the city to say, let us have an opportunity to work where the market is strongest, but we need flexibility to do that. And this is where the City and County understand that. We still long-term only have one basket of entitlement, but now we're going to be able to use it more flexibly to really meet the market. So we're going to build what the market tells us creates the best value out there.

但我們的想法是──我們沒有為下一步的發展制定既定計畫。我們真正要做的是與市政府合作，讓我們有機會在市場最強大的地方開展工作，但我們需要靈活性才能做到這一點。這就是市和縣的理解。長期來看，我們仍然只有一籃子權益，但現在我們將能夠更靈活地使用它，真正滿足市場需求。因此，我們將打造市場告訴我們能夠創造最佳價值的產品。

Okay. So are you saying that your residential units will be capped at what the combined was previously entitled before the -- when you guys were going to build together?

好的。那麼，您是說，你們的住宅單元的上限將是在你們要一起建造之前所獲得的總和的上限嗎？

Yeah. Once again, we're not trying to add or subtract anything out there. It really is to kind of keep the master plan in place and just have flexibility to move them around.

是的。再說一遍，我們並不是想增加或減少任何東西。這實際上是為了保持總體規劃不變，並靈活地移動它們。

So once again, your question, though -- once again Candlestick is a long development process. That's not to say that -- pick your favorite timeframe -- that we couldn't go back and ask the city for more residential. There will be opportunities to adjust that. But there's nothing today that tells us we need to adjust what was approved. It's really about flexibility, how and where we use it.

所以，你的問題再次出現——燭台再次是一個漫長的開發過程。這並不是說——選擇你最喜歡的時間範圍——我們不能回去向城市要求更多的住宅。會有機會對此進行調整。但今天沒有任何資訊告訴我們需要調整已批准的內容。這實際上與靈活性以及我們使用它的方式和地點有關。

Myron Kaplan, private investor.

邁倫·卡普蘭，私人投資者。

Yeah, hi, guys. Thanks for taking the questions. And I just have one. This is just a technical thing. In the first paragraph of today's release, you say that the Great Park Venture distributions totaled $29.7 million. And then when I go to the next page, there's equity in earnings from unconsolidated entities. First, on that paragraph, it says that the share of net income was $15.5 million.

是的，嗨，夥計們。感謝您提出問題。而我只有一個。這只是一個技術問題。在今天發布的第一段中，您說 Great Park Venture 的分配總額為 2,970 萬美元。然後，當我翻到下一頁時，我會看到未合併實體的收益權益。首先，在該段落中，它表示淨利潤的份額為 1550 萬美元。

If I turn the page, then you have a contribution of $23.4 million for the [3H the 37.5% percentage interest]. So how come there -- it will be three different numbers?

如果我翻過這一頁，那麼您將為該專案捐款 2,340 萬美元[3H 37.5% 的利息]。那麼為什麼會出現三個不同的數字呢？

First of all, Myron, it's good to hear you again today. This is Kim. And what you want to note is that there are distributions that are being received. So one of the numbers is the cash that we're receiving. The other is our share of the earnings, and they'll be quarter-to-date numbers, and they'll be year-to-date numbers. And so you need to line those up, so you know which one you're looking.

首先，邁倫，很高興今天再次聽到你的聲音。這是金。您要注意的是，我們正在收到一些分發版。其中一個數字就是我們收到的現金。另一個是我們在收益中所佔的份額，它們將是季度至今的數字，也是年初至今的數字。所以你需要將它們排列起來，這樣你就知道你在尋找哪一個。

So what was the cash contribution from Great Park Venture to Five Point in the second quarter?

那麼第二季 Great Park Venture 對 Five Point 的現金貢獻是多少呢？

In the second quarter?

第二季？

Yeah.

是的。

The cash distribution was $23.4 million.

現金分配為 2340 萬美元。

Okay.

好的。

And the equity in earnings was $15.5 million. So $15.5 million was our share of their earnings, and $23.4 million is the amount of cash they gave us.

收益權益為 1550 萬美元。因此，1550 萬美元是我們從他們的收入中分得的份額，2340 萬美元是他們給我們的現金。

Okay, thank you.

好的，謝謝。

And then for the six months, Myron, we had equity and earnings of $33.1 million, and we received cash of [$47.3 million]

然後，在接下來的六個月裡，邁倫，我們的股本和收益為 3,310 萬美元，我們收到了 3,310 萬美元的現金[4730萬美元]

Okay. Well, that's good. It's certainly welcome.

好的。嗯，那很好。這當然是受歡迎的。

Very welcome.

非常歡迎。

And I'm glad to see that you're stepping up to -- I think you're trying to step up the throttle or, let's say, push the pedal down on Valencia, which you've been -- pretty much been running on about three cylinders for a long time. It's such a vast project, and you would think that there's opportunities to do a lot more volume if you can get these villages entitled.

我很高興看到你正在加緊努力——我認為你正在嘗試加大油門，或者，比方說，在瓦倫西亞踩下踏板，你一直在——幾乎一直在跑步大約三個氣缸很長一段時間。這是一個如此龐大的項目，你會認為如果你能讓這些村莊獲得權利，你就有機會做更多的工作。

We agree.

我們同意。

Can I ask you why you haven't done it before?

我可以問你為什麼之前沒有這樣做嗎？

As you said, it's the pace at which we can get the entitlements through the County of Los Angeles. That's what our limiting factor is.

正如您所說，這是我們透過洛杉磯縣獲得權利的速度。這就是我們的限制因素。

I see. In this sale you were talking about that's going to take place where there's a contract in the fourth quarter, is that the piece that's -- that 35-acre mixed-use parcel that you had that was near the county line?

我懂了。在這次銷售中，您談到將在第四季度簽訂合約的情況下進行，是不是您擁有的靠近縣線的 35 英畝混合用途地塊？

Yes.

是的。

So that's going to become mostly residential or commercial?

那麼這將主要變成住宅或商業？

It's going to be a traditional SFD for sale.

它將以傳統的 SFD 形式出售。

I'm sorry?

對不起？

It's going to be traditional housing -- single-family detached housing.

這將是傳統的住房——單戶獨立住房。

Okay. Very good. Terrific. It's all good. So I guess, basically, we just have to snooze till the end of the year, and then you'll have another great outcome, and the company is going to be even more secure basis.

好的。非常好。了不起。一切都很好。所以我想，基本上，我們只需要推遲到今年年底，然後你就會有另一個偉大的成果，公司的基礎也會更加安全。

I assure you this team will not be snoozing till year-end. We're going to be working hard.

我向你保證這支球隊不會打瞌睡直到年底。我們會努力工作。

No, you're like cowboys. You've got to whip the steer, so you get them to keep moving. But at the end of the day, when it gets dark, you'll be in the town and they'll be in a corral, and you'll have the money in the bank. That's about it.

不，你們就像牛仔。你必須鞭打小牛，這樣你才能讓它們繼續前進。但到了一天結束的時候，天黑了，你就會在鎮上，他們會在畜欄裡，你就會把錢存在銀行。就是這樣。

Thanks, Myron.

謝謝，邁倫。

You're doing very well. I think you're doing things -- it looks like things are going quite well for the company. I guess we stockholders, we ought to be pleased even though quote, the market -- the retail investor doesn't care, unquote.

你做得很好。我認為你正在做一些事情——看起來公司進展順利。我想我們股東，即使報價，我們也應該感到高興，市場——散戶投資者並不關心，取消報價。

Well, thank you.

嗯，謝謝。

Thank you. There are no further questions at this time. I would like to hand the floor back over to Dan Hedigan for any closing comments.

謝謝。目前沒有其他問題。我想將發言權交還給 Dan Hedigan 以徵求結束意見。

Well, thank you, everyone. 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.

嗯，謝謝大家。我們謹代表我們的管理團隊感謝您參加今天的電話會議，我們期待下個季度與您交談。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。