Five Point Holdings, LLC (NYSE:FPH) Q4 2022 Earnings Call Transcript

Dan Hedigan: Alan I don’t have to – yes I mean, certainly as we have the year-end land sales, we would anticipate additional distributions. But it is necessarily all tied to that because the partnership is very conservative and made a conscious decision at the end of the year to hold on to additional cash as they see how this year sorts out. So I think we were – are not necessarily tied to land sales as much as we’re tied just like everyone else, a little bit of clarity on how the market is moving forward.

Alan Ratner: Got it, that makes sense. Another question here so you mentioned the plan for San Francisco sounds like looking to move forward with Candlestick there. Just thinking through the cash flow, I’m assuming once you guys get that plan approved or we get to move forward with it, there’s going to be some development expenses that need to occur obviously before you book any revenue. Is that contemplated at all on your 2023 expectation for cash flow to have any development expenses there? And if not, what do you expect those expenses to look like once they do begin to kick in?

Dan Hedigan: Well, the first part of your question, we are not expecting any of those expenses in 2023. And you know the – what it’s going to take to kind of kick that off obviously, we’ll have a lot more clarity as we get closer to that point in time, but getting to the first commercial pad because of Candlesticks relationship to the 101, if you remember, it used to be an active ballpark, people could get off 101 and go there. It’s actually compared to a lot of projects not that extraordinary. It’s real money. I don’t want to mislead you at all. But I – to try to estimate what that would be right this moment, just be a little bit early, but the first pad is very accessible from the 101 Freeway.

Alan Ratner: Got it, okay. That’s helpful. And then final question, I think you said in that cash buildup that you expect about $80 million to $90 million coming in the door in the first half of the year. Can you kind of just break that up a little bit? Is that – are those commercial land sales, is it apartment sales, residential distribution to any additional guidance you can give on that?

Dan Hedigan: Yes, it’s a combination and really – I’ll start at the bottom, actually we finished. I mean, we are expecting an interim distribution in the first half of the year based on our view of the market. So it’s really a combination, it’s combination of operating revenue, CFT reimbursements and recoveries, sales that we are currently working on and then obviously the distributions I just mentioned. And so within that basket of opportunities, we see – we have visibility $80 million to $100 million in the first half of the year kind of in that basket and how it finally settles out, I can’t tell you right this second. But we’re feeling very good about that kind of basket of opportunities.

Alan Ratner: Perfect, all right. Well, thank you for taking all of my questions here. I appreciate the time and best luck with everything.

Dan Hedigan: Thanks Alan.

Operator: Our next question comes from the line of . Please proceed.

Unidentified Analyst: Hi thanks for taking my questions today.

Dan Hedigan: Sure. Hi, Ben.

Unidentified Analyst: Can you hear me?

Dan Hedigan: Yes, Ben we can. Thank you.

Unidentified Analyst: Great, I was just wondering if you could talk a little bit more about the management agreement and what material changes there besides the economic side? And can you talk a little bit about why there’s change control added to that? Thanks.