10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-38088

Five Point Holdings, LLC

(Exact name of registrant as specified in its charter)

Delaware				27-0599397
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
2000 FivePoint	4th Floor	Irvine	California	92618
(Address of Principal Executive Offices)				(Zip code)

(949) 349-1000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common shares	FPH	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 14, 2023, 69,199,938 Class A common shares and 79,233,544 Class B common shares were outstanding.

FIVE POINT HOLDINGS, LLC

TABLE OF CONTENTS

FORM 10-Q

		Page
	PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022	1
	Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022	2
	Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2023 and 2022	3
	Unaudited Condensed Consolidated Statements of Capital for the three months ended March 31, 2023 and 2022	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	31
ITEM 4.	Controls and Procedures	31
	PART II. OTHER INFORMATION
ITEM 1.	Legal Proceedings	33
ITEM 1A.	Risk Factors	33
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
ITEM 3.	Defaults Upon Senior Securities	33
ITEM 4.	Mine Safety Disclosures	33
ITEM 5.	Other Information	33
ITEM 6.	Exhibits	34
	Signatures	35

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. This report may contain forward-looking statements regarding: our expectations of our future revenues, costs and financial performance; future demographics and market conditions in the areas where our communities are located; the outcome of pending litigation and its effect on our operations; the timing of our development activities; and the timing of future real estate purchases or sales, including anticipated deliveries of homesites and anticipated amenities in our communities.

We caution you that any forward-looking statements presented in this report are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. We believe these risks and uncertainties include, but are not limited to, the following:

•uncertainties and risks related to public health issues such as a major epidemic or pandemic, including COVID-19;

•risks associated with the real estate industry;

•downturns in economic conditions or demographic changes at the national, regional or local levels, particularly in the areas where our properties are located;

•uncertainty and risks related to zoning and land use laws and regulations, including environmental planning and protection laws;

•risks associated with development and construction projects;

•adverse developments in the economic, political, competitive or regulatory climate of California;

•loss of key personnel;

•uncertainties and risks related to adverse weather conditions, natural disasters and climate change;

•fluctuations in interest rates;

•the availability of cash for distribution and debt service and exposure to risk of default under debt obligations;

•exposure to liability relating to environmental and health and safety matters;

•exposure to litigation or other claims;

•insufficient amounts of insurance or exposure to events that are either uninsured or underinsured;

•intense competition in the real estate market and our ability to sell properties at desirable prices;

•fluctuations in real estate values;

•changes in property taxes;

•risks associated with our trademarks, trade names and service marks;

•conflicts of interest with our directors;

•general volatility of the capital and credit markets and the price of our Class A common shares; and

•risks associated with public or private financing or the unavailability thereof.

Please see Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, as well as other risks and uncertainties detailed from time to time in our subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission, for a more detailed discussion of these and other risks.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements.

While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date of this report. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law.

PART I. FINANCIAL INFORMATION

ITEM 1.    Financial Statements

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)

(Unaudited)

	March 31, 2023		December 31, 2022
ASSETS
INVENTORIES	$	2,260,595	$	2,239,125
INVESTMENT IN UNCONSOLIDATED ENTITIES	332,564		331,594
PROPERTIES AND EQUIPMENT, NET	29,955		30,243
INTANGIBLE ASSET, NET—RELATED PARTY	39,610		40,257
CASH AND CASH EQUIVALENTS	106,577		131,771
RESTRICTED CASH AND CERTIFICATES OF DEPOSIT	992		992
RELATED PARTY ASSETS	97,114		97,126
OTHER ASSETS	11,075		14,676
TOTAL	$	2,878,482	$	2,885,784
LIABILITIES AND CAPITAL
LIABILITIES:
Notes payable, net	$	621,035	$	620,651
Accounts payable and other liabilities	100,304		94,426
Related party liabilities	90,628		93,086
Deferred income tax liability, net	11,506		11,506
Payable pursuant to tax receivable agreement	173,208		173,068
Total liabilities	996,681		992,737
COMMITMENTS AND CONTINGENT LIABILITIES (Note 11)
REDEEMABLE NONCONTROLLING INTEREST	25,000		25,000
CAPITAL:
Class A common shares; No par value; Issued and outstanding: March 31, 2023—69,199,938 shares; December 31, 2022—69,068,354 shares
Class B common shares; No par value; Issued and outstanding: March 31, 2023—79,233,544 shares; December 31, 2022—79,233,544 shares
Contributed capital	588,704		587,733
Retained earnings	28,850		33,386
Accumulated other comprehensive loss	(2,964)		(2,988)
Total members’ capital	614,590		618,131
Noncontrolling interests	1,242,211		1,249,916
Total capital	1,856,801		1,868,047
TOTAL	$	2,878,482	$	2,885,784

See accompanying notes to unaudited condensed consolidated financial statements.

1

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2023		2022
REVENUES:
Land sales	$	(25)	$	557
Land sales—related party	624		1
Management services—related party	4,236		3,547
Operating properties	866		781
Total revenues	5,701		4,886
COSTS AND EXPENSES:
Land sales	—		—
Management services	2,366		2,684
Operating properties	1,172		1,839
Selling, general, and administrative	13,752		16,791
Restructuring	—		19,437
Total costs and expenses	17,290		40,751
OTHER INCOME (EXPENSE):
Interest income	836		21
Miscellaneous	(21)		112
Total other income	815		133
EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES	1,048		(1,032)
LOSS BEFORE INCOME TAX PROVISION	(9,726)		(36,764)
INCOME TAX PROVISION	(8)		(5)
NET LOSS	(9,734)		(36,769)
LESS NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	(5,198)		(19,639)
NET LOSS ATTRIBUTABLE TO THE COMPANY	$	(4,536)	$	(17,130)
NET LOSS ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE
Basic	$	(0.07)	$	(0.25)
Diluted	$	(0.07)	$	(0.25)
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING
Basic	68,705,223		68,167,586
Diluted	68,706,164		70,050,872
NET LOSS ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE
Basic and diluted	$	(0.00)	$	(0.00)
WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING
Basic and diluted	79,233,544		79,233,544

See accompanying notes to unaudited condensed consolidated financial statements.

2

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2023		2022
NET LOSS	$	(9,734)	$	(36,769)
OTHER COMPREHENSIVE INCOME:
Reclassification of actuarial loss on defined benefit pension plan included in net loss	41		13
Other comprehensive income before taxes	41		13
INCOME TAX PROVISION RELATED TO OTHER COMPREHENSIVE INCOME	—		—
OTHER COMPREHENSIVE INCOME—Net of tax	41		13
COMPREHENSIVE LOSS	(9,693)		(36,756)
LESS COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	(5,183)		(19,634)
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY	$	(4,510)	$	(17,122)

See accompanying notes to unaudited condensed consolidated financial statements.

3

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF CAPITAL

(In thousands, except share amounts)

(Unaudited)

	Class A Common Shares	Class B Common Shares	Contributed Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Members’ Capital		Noncontrolling Interests		Total Capital
BALANCE - December 31, 2022	69,068,354	79,233,544	$	587,733	$	33,386	$	(2,988)	$	618,131	$	1,249,916	$	1,868,047
Net loss	—	—	—		(4,536)		—		(4,536)		(5,198)		(9,734)
Share-based compensation expense	—	—	763		—		—		763		—		763
Reacquisition of share-based compensation awards for tax-withholding purposes	(83,660)	—	(202)		—		—		(202)		—		(202)
Issuance of share-based compensation awards, net of forfeitures	215,244	—	—		—		—		—		—		—
Other comprehensive income—net of tax of $0	—	—	—		—		26		26		15		41
Tax distributions to noncontrolling interests	—	—	—		—		—		—		(1,974)		(1,974)
Adjustment to liability recognized under tax receivable agreement—net of tax of $0	—	—	(140)		—		—		(140)		—		(140)
Adjustment of noncontrolling interest in the Operating Company	—	—	550		—		(2)		548		(548)		—
BALANCE - March 31, 2023	69,199,938	79,233,544	$	588,704	$	28,850	$	(2,964)	$	614,590	$	1,242,211	$	1,856,801
BALANCE - December 31, 2021	70,107,552	79,233,544	$	587,587	$	48,789	$	(1,952)	$	634,424	$	1,265,954	$	1,900,378
Net loss	—	—	—		(17,130)		—		(17,130)		(19,639)		(36,769)
Share-based compensation expense	—	—	4,103		—		—		4,103		—		4,103
Reacquisition of share-based compensation awards for tax-withholding purposes	(417,716)	—	(2,736)		—		—		(2,736)		—		(2,736)
Forfeitures of share-based compensation awards, net of issuances	(621,482)	—	—		—		—		—		—		—
Other comprehensive income—net of tax of $0	—	—	—		—		8		8		5		13
Tax distributions to noncontrolling interests	—	—	—		—		—		—		(435)		(435)
Adjustment to liability recognized under tax receivable agreement—net of tax of $0	—	—	1,058		—		—		1,058		—		1,058
Adjustment of noncontrolling interest in the Operating Company	—	—	(4,406)		—		11		(4,395)		4,395		—
BALANCE - March 31, 2022	69,068,354	79,233,544	$	585,606	$	31,659	$	(1,933)	$	615,332	$	1,250,280	$	1,865,612

See accompanying notes to unaudited condensed consolidated financial statements.

4

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(9,734)	$	(36,769)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in (earnings) loss from unconsolidated entities	(1,048)		1,032
Depreciation and amortization	2,018		1,592
Share-based compensation	763		4,103
Changes in operating assets and liabilities:
Inventories	(20,999)		(47,462)
Related party assets	(575)		2,845
Other assets	2,996		(389)
Accounts payable and other liabilities	5,951		6,282
Related party liabilities	(1,010)		10,797
Net cash used in operating activities	(21,638)		(57,969)
CASH FLOWS FROM INVESTING ACTIVITIES:
Return of investment from Valencia Landbank Venture	68		484
Net cash provided by investing activities	68		484
CASH FLOWS FROM FINANCING ACTIVITIES:
Related party reimbursement obligation	(1,448)		(1,159)
Reacquisition of share-based compensation awards for tax-withholding purposes	(202)		(2,736)
Tax distributions to noncontrolling interests	(1,974)		(435)
Net cash used in financing activities	(3,624)		(4,330)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(25,194)		(61,815)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period	132,763		266,792
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period	$	107,569	$	204,977

SUPPLEMENTAL CASH FLOW INFORMATION (Note 12)

See accompanying notes to unaudited condensed consolidated financial statements.

5

FIVE POINT HOLDINGS, LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.    BUSINESS AND ORGANIZATION

Five Point Holdings, LLC, a Delaware limited liability company (the “Holding Company” and, together with its consolidated subsidiaries, the “Company”), is an owner and developer of mixed-use planned communities in California. The Holding Company owns all of its assets and conducts all of its operations through Five Point Operating Company, LP, a Delaware limited partnership (the “Operating Company”), and its subsidiaries.

The Company has two classes of shares outstanding: Class A common shares and Class B common shares. Holders of Class A common shares and holders of Class B common shares are entitled to one vote for each share held of record on all matters submitted to a vote of shareholders, and are both entitled to receive distributions at the same time. However, the distributions paid to holders of Class B common shares are in an amount per share equal to 0.0003 multiplied by the amount paid per Class A common share.

The Company presents noncontrolling interests on the Company’s condensed consolidated balance sheet and classifies such interests within capital but separate from the Company’s Class A and Class B members’ capital. Noncontrolling interests represent equity interests in the Company’s consolidated subsidiaries held by partners in the Operating Company, excluding the Holding Company, and members in The Shipyard Communities, LLC (the “San Francisco Venture”), excluding the Operating Company (see Note 5).

The Company has an entity structure in which the Company’s two largest equity owners, Lennar Corporation (“Lennar”) and Castlelake, LP (“Castlelake”), and the Company’s founder and Chairman Emeritus, Emile Haddad, separately hold, in addition to interests in the Company’s common shares, equity interests in either or both the Operating Company or the San Francisco Venture that can be exchanged for, at the Company’s option, either the Company’s Class A common shares or cash. The diagram below presents a simplified depiction of the Company’s organizational structure as of March 31, 2023:

(1) A wholly owned subsidiary of the Holding Company serves as the sole managing general partner of the Operating Company. As of March 31, 2023, the Company owned approximately 62.6% of the outstanding Class A Common Units of the Operating Company. After a one year holding period, a holder of Class A Common Units of the Operating Company can exchange the units for, at the Company’s option, either Class A common shares of the Holding Company, on a one-for-one basis, or cash equal to the fair market value of such shares. Until Class A Common Units of the Operating Company are exchanged or redeemed, the capital associated with Class A Common Units of the Operating Company not held by the Holding Company is presented within "noncontrolling interests" on the Company’s condensed consolidated balance sheet. Assuming the exchange of all outstanding Class A Common Units of the Operating Company and all outstanding Class A units of the San Francisco Venture (see (2)

6

below), that are not held by the Company, based on the closing price of the Company’s Class A common shares on April 14, 2023 ($2.32), the equity market capitalization of the Company was approximately $344.4 million.

(2) The Operating Company owns all of the outstanding Class B units of the San Francisco Venture, the entity developing the Candlestick and The San Francisco Shipyard communities. The Class A units of the San Francisco Venture, which the Operating Company does not own, are intended to be economically equivalent to Class A Common Units of the Operating Company. As the holder of all outstanding Class B units of the San Francisco Venture, the Operating Company is entitled to receive 99% of available cash from the San Francisco Venture after the holders of Class A units in the San Francisco Venture have received distributions equivalent to the distributions, if any, paid on Class A Common Units of the Operating Company. Class A units of the San Francisco Venture can be exchanged, on a one-for-one basis, for Class A Common Units of the Operating Company (See Note 5). Until exchanged or redeemed through the Operating Company, the capital associated with Class A units of the San Francisco Venture is presented within "noncontrolling interests" on the Company’s condensed consolidated balance sheet.

(3) Together, the Operating Company, Five Point Communities, LP, a Delaware limited partnership (“FP LP”), and Five Point Communities Management, Inc., a Delaware corporation (“FP Inc.” and together with FP LP, the “Management Company”) own 100% of Five Point Land, LLC, a Delaware limited liability company (“FPL”), the entity developing Valencia, a mixed-use planned community located in northern Los Angeles County, California. The Operating Company has a controlling interest in the Management Company.

(4) Interests in Heritage Fields LLC, a Delaware limited liability company (the “Great Park Venture”), are either “Percentage Interests” or “Legacy Interests.” Holders of the Legacy Interests were entitled to receive priority distributions up to an aggregate amount of $565.0 million, of which $498.7 million had been distributed as of April 14, 2023 (See Note 4). The Company owns a 37.5% Percentage Interest in the Great Park Venture and serves as its administrative member. However, management of the Great Park Venture is vested in the four voting members, who have a total of five votes. Major decisions generally require the approval of at least 75% of the votes of the voting members. The Company has two votes, and the other three voting members each have one vote, so the Company is unable to approve any major decision without the consent or approval of at least two of the other voting members. The Company does not include the Great Park Venture as a consolidated subsidiary, but rather as an equity method investee, in its condensed consolidated financial statements.

(5) The Company owns a 75% interest in Five Point Office Venture Holdings I, LLC, a Delaware limited liability company (the “Gateway Commercial Venture”). The Company manages the Gateway Commercial Venture, however, the manager’s authority is limited. Major decisions by the Gateway Commercial Venture generally require unanimous approval by an executive committee composed of two people designated by the Company and two people designated by another investor. Some decisions require approval by all of the members of the Gateway Commercial Venture. The Company does not include the Gateway Commercial Venture as a consolidated subsidiary, but rather as an equity method investee, in its condensed consolidated financial statements.

2.    BASIS OF PRESENTATION

Principles of consolidation—The accompanying condensed consolidated financial statements include the accounts of the Holding Company and the accounts of all subsidiaries in which the Holding Company has a controlling interest and the consolidated accounts of variable interest entities (“VIEs”) in which the Holding Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.

Unaudited interim financial information—The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments (including normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the three months ended March 31, 2023 are not necessarily indicative of the operating results and cash flows that may be expected for the full year.

Use of estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates.

7

Miscellaneous other income—Miscellaneous other (loss) income consisted of the following (in thousands):

	Three Months Ended March 31,
	2023		2022
Net periodic pension (cost) benefit	$	(21)	$	112
Total miscellaneous other (loss) income	$	(21)	$	112

Recently adopted accounting pronouncements—There are no recent accounting pronouncements that have had or are expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures.

3.    REVENUES

The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (in thousands):

	Three Months Ended March 31, 2023
	Valencia		San Francisco		Great Park(1)		Commercial(1)		Total
Land sales and land sales—related party	$	599	$	—	$	—	$	—	$	599
Management services—related party	—		—		4,129		107		4,236
Operating properties	358		—		—		—		358
	957		—		4,129		107		5,193
Operating properties leasing revenues	346		162		—		—		508
	$	1,303	$	162	$	4,129	$	107	$	5,701

	Three Months Ended March 31, 2022
	Valencia		San Francisco		Great Park(1)		Commercial(1)		Total
Land sales and land sales—related party	$	558	$	—	$	—	$	—	$	558
Management services—related party	—		—		3,444		103		3,547
Operating properties	356		—		—		—		356
	914		—		3,444		103		4,461
Operating properties leasing revenues	245		180		—		—		425
	$	1,159	$	180	$	3,444	$	103	$	4,886

(1) The tables above do not include revenues of the Great Park Venture and the Gateway Commercial Venture, which are included in the Company’s reporting segment totals (see Notes 4 and 13).

The opening and closing balances of the Company’s contract assets for the three months ended March 31, 2023 were $86.5 million ($79.9 million related party, see Note 8) and $86.0 million ($80.4 million related party, see Note 8), respectively. The opening and closing balances of the Company’s contract assets for the three months ended March 31, 2022 were $87.6 million ($79.1 million related party, see Note 8) and $87.5 million ($79.1 million related party, see Note 8), respectively. The decrease of $0.5 million for the three months ended March 31, 2023 between the opening and closing balances of the Company’s contract assets primarily resulted from the receipt of marketing fees from homebuilders from prior period land sales offset by additional incentive compensation revenue earned during the period from the Company's amended and restated development management agreement ("A&R DMA") with the Great Park Venture (see Note 8). The decrease of $0.1 million for the three months ended March 31, 2022 between the opening and closing balances of the Company’s contract assets primarily resulted from the receipt of marketing fees from homebuilders

The opening and closing balances of the Company’s other receivables from contracts with customers and contract liabilities for the three months ended March 31, 2023 and 2022 were insignificant.

8

4.    INVESTMENT IN UNCONSOLIDATED ENTITIES

Great Park Venture

The Great Park Venture has two classes of interests—“Percentage Interests” and “Legacy Interests.” The Operating Company owned 37.5% of the Great Park Venture’s Percentage Interests as of March 31, 2023. As of March 31, 2023, Legacy Interest holders were entitled to receive a maximum of $66.3 million in distributions to be paid pro-rata with Percentage Interest holders. Approximately 10% of future distributions will be paid to the Legacy Interest holders until such time as the remaining balance has been fully paid. The holders of the Percentage Interests will receive all other distributions.

The Great Park Venture is the owner of Great Park Neighborhoods, a mixed-use planned community located in Orange County, California. The Company, through the A&R DMA, as amended, manages the planning, development and sale of land at the Great Park Neighborhoods and supervises the day-to-day affairs of the Great Park Venture. The Great Park Venture is governed by an executive committee of representatives appointed by only the holders of Percentage Interests. The Company serves as the administrative member but does not control the actions of the executive committee. The Company accounts for its investment in the Great Park Venture using the equity method of accounting.

The carrying value of the Company’s investment in the Great Park Venture is higher than the Company’s underlying share of equity in the carrying value of net assets of the Great Park Venture, resulting in a basis difference. The Company’s earnings or losses from the equity method investment are adjusted by amortization and accretion of the basis differences as the assets (mainly inventory) and liabilities that gave rise to the basis difference are sold, settled or amortized.

During the three months ended March 31, 2023, the Great Park Venture recognized $5.5 million in land sale revenues to related parties of the Company and $3.1 million in land sale revenues to third parties.

During the three months ended March 31, 2022, the Great Park Venture recognized $1.5 million in land sale revenues to related parties of the Company and $0.3 million in land sale revenues to third parties.

The following table summarizes the statements of operations of the Great Park Venture for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Land sale and related party land sale revenues	$	8,600	$	1,819
Home sale revenues	—		17,161
Cost of land sales	—		—
Cost of home sales	—		(12,902)
Other costs and expenses	(5,857)		(8,909)
Net income (loss) of Great Park Venture	$	2,743	$	(2,831)
The Company’s share of net income (loss)	$	1,029	$	(1,062)
Basis difference accretion (amortization)	133		(239)
Equity in earnings (loss) from Great Park Venture	$	1,162	$	(1,301)

The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Inventories	$	613,239	$	605,893
Cash and cash equivalents	144,294		149,326
Receivable and other assets	40,196		43,955
Total assets	$	797,729	$	799,174
Accounts payable and other liabilities	$	151,900	$	156,085
Redeemable Legacy Interests	66,254		66,254
Capital (Percentage Interest)	579,575		576,835
Total liabilities and capital	$	797,729	$	799,174
The Company’s share of capital in Great Park Venture	$	217,342	$	216,313
Unamortized basis difference	72,846		72,713
The Company’s investment in the Great Park Venture	$	290,188	$	289,026

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Gateway Commercial Venture

The Company owned a 75% interest in the Gateway Commercial Venture as of March 31, 2023. The Gateway Commercial Venture is governed by an executive committee in which the Company is entitled to appoint two individuals. One of the other members of the Gateway Commercial Venture is also entitled to appoint two individuals to the executive committee. The unanimous approval of the executive committee is required for certain matters, which limits the Company’s ability to control the Gateway Commercial Venture, however, the Company is able to exercise significant influence and therefore accounts for its investment in the Gateway Commercial Venture using the equity method. The Company is the manager of the Gateway Commercial Venture, with responsibility to manage and administer its day-to-day affairs and implement a business plan approved by the executive committee.

The Gateway Commercial Venture owns one commercial office building and approximately 50 acres of commercial land with additional development rights at a 73 acre office, medical, research and development campus located within the Great Park Neighborhoods (the “Five Point Gateway Campus”). The Five Point Gateway Campus consists of four buildings totaling approximately one million square feet. The Company and a subsidiary of Lennar lease portions of the building owned by the Gateway Commercial Venture, and during the three months ended March 31, 2023 and 2022, the Gateway Commercial Venture recognized $2.2 million and $1.9 million, respectively, in rental revenues from those leasing arrangements.

The following table summarizes the statements of operations of the Gateway Commercial Venture for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Rental revenues	$	2,154	$	1,938
Rental operating and other expenses	(910)		(535)
Depreciation and amortization	(994)		(984)
Interest expense	(533)		(307)
Net (loss) income of Gateway Commercial Venture	$	(283)	$	112
Equity in (loss) earnings from Gateway Commercial Venture	$	(212)	$	84

The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Real estate and related intangible assets, net	$	81,799	$	82,797
Cash	4,631		4,244
Other assets	4,533		4,588
Total assets	$	90,963	$	91,629
Notes payable, net	$	29,418	$	29,418
Other liabilities	7,568		7,951
Members’ capital	53,977		54,260
Total liabilities and capital	$	90,963	$	91,629
The Company’s investment in the Gateway Commercial Venture	$	40,483	$	40,695

The debt of the Gateway Commercial Venture is non-recourse to the Company other than in the case of customary “bad act” exceptions or bankruptcy or insolvency events.

Valencia Landbank Venture

As of March 31, 2023, the Company owned a 10% interest in the Valencia Landbank Venture, an entity organized in December 2020 for the purpose of taking assignment from homebuilders of purchase and sale agreements for the purchase of residential lots within the Valencia community. The Valencia Landbank Venture concurrently enters into option and development agreements with homebuilders pursuant to which the homebuilders retain the option to purchase the land to construct and sell homes. The Company does not have a controlling financial interest in the Valencia Landbank Venture, however, the Company has the ability to significantly influence the Valencia Landbank Venture’s operating and financial policies, and most major decisions require the Company’s approval in addition to the approval of the Valencia Landbank Venture’s other unaffiliated member, and therefore the Company accounts for its investment in the Valencia Landbank Venture using the equity method. At March 31, 2023 and December 31, 2022, the Company’s investment in the Valencia Landbank Venture was $1.9 million and $1.9 million, respectively, and the Company recognized $0.1 million and $0.2 million in equity in earnings for the three months ended March 31, 2023 and 2022, respectively.

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5.    NONCONTROLLING INTERESTS

The Operating Company

The Holding Company’s wholly owned subsidiary is the managing general partner of the Operating Company, and at March 31, 2023, the Holding Company and its wholly owned subsidiary owned approximately 62.6% of the outstanding Class A Common Units and 100% of the outstanding Class B Common Units of the Operating Company. The Holding Company consolidates the financial results of the Operating Company and its subsidiaries and records a noncontrolling interest for the remaining 37.4% of the outstanding Class A Common Units of the Operating Company that are owned separately by affiliates of Lennar, affiliates of Castlelake and an entity controlled by Emile Haddad, the Company’s Chairman Emeritus of the Board of Directors (the “Management Partner”).

After a 12 month holding period, holders of Class A Common Units of the Operating Company may exchange their units for, at the Company’s option, either (i) Class A common shares on a one-for-one basis (subject to adjustment in the event of share splits, distributions of shares, warrants or share rights, specified extraordinary distributions and similar events), or (ii) cash in an amount equal to the market value of such shares at the time of exchange. In either situation, an equal number of that holder’s Class B common shares will automatically convert into Class A common shares, at a ratio of 0.0003 Class A common shares for each Class B common share. This exchange right is currently exercisable by all holders of outstanding Class A Common Units of the Operating Company.

With each exchange of Class A Common Units of the Operating Company for Class A common shares, the Holding Company’s percentage ownership interest in the Operating Company and its share of the Operating Company’s cash distributions and profits and losses will increase. Additionally, other issuances of common shares of the Holding Company or common units of the Operating Company result in changes to the noncontrolling interest percentage. Such equity transactions result in an adjustment between members’ capital and the noncontrolling interest in the Company’s condensed consolidated balance sheet and statement of capital to account for the changes in the noncontrolling interest ownership percentage as well as any change in total net assets of the Company.

During the three months ended March 31, 2023 and 2022, the Holding Company’s ownership interest in the Operating Company changed as a result of net equity transactions related to the Company’s share-based compensation plan.

The terms of the Operating Company's Limited Partnership Agreement (“LPA”) provide for the payment of tax distributions to the Operating Company's partners in an amount equal to the estimated income tax liabilities resulting from taxable income or gain allocated to those parties. The tax distribution provisions in the LPA were included in the Operating Company's governing documents adopted prior to the Company’s initial public offering and were designed to provide funds necessary to pay tax liabilities for income that might be allocated, but not paid, to the partners.

Tax distributions to the partners of the Operating Company for the three months ended March 31, 2023 and 2022, were as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Management Partner	$	1,974	$	435
Other partners (excluding the Holding Company)	—		—
Total tax distributions	$	1,974	$	435

Generally, tax distributions are treated as advance distributions under the LPA and are taken into account when determining the amounts otherwise distributable under the LPA.

The San Francisco Venture

The San Francisco Venture has three classes of units—Class A, Class B and Class C units. The Operating Company owns all of the outstanding Class B units of the San Francisco Venture. All of the outstanding Class A units are owned by Lennar and Castlelake. The Class A units of the San Francisco Venture are intended to be substantially economically equivalent to the Class A Common Units of the Operating Company. The Class A units of the San Francisco Venture represent noncontrolling interests to the Operating Company.

Holders of Class A units of the San Francisco Venture can redeem their units at any time and receive Class A Common Units of the Operating Company on a one-for-one basis (subject to adjustment in the event of share splits, distributions of shares, warrants or share rights, specified extraordinary distributions and similar events). If a holder requests a redemption of Class A units of the San Francisco Venture that would result in the Holding Company’s ownership of the Operating Company falling below 50.1%, the Holding Company has the option of satisfying the redemption with Class A common shares instead. The Company also has the option, at any time, to acquire outstanding Class A units of the San Francisco Venture in exchange for Class A Common Units of the Operating Company. The 12 month holding period for any Class A Common Units of the Operating Company issued in exchange for

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Class A units of the San Francisco Venture is calculated by including the period that such Class A units of the San Francisco Venture were owned. This exchange right is currently exercisable by all holders of outstanding Class A units of the San Francisco Venture.

Redeemable Noncontrolling Interest

In 2019, the San Francisco Venture issued 25.0 million Class C units to an affiliate of Lennar in exchange for a contribution of $25.0 million to the San Francisco Venture. Provided that Lennar completes the construction of a certain number of new homes in Candlestick as contemplated under purchase and sale agreements with the Company, the San Francisco Venture is required to redeem the Class C units if and when the Company receives reimbursements from the Mello-Roos communities facilities district formed for the development, in an aggregate amount equal to 50% of any reimbursements received up to a maximum amount of $25.0 million. The San Francisco Venture also maintains the ability to redeem the then outstanding balance of Class C units for cash at any time. Upon a liquidation of the San Francisco Venture, the holders of Class C Units are entitled to a liquidation preference. The maximum amount payable by the San Francisco Venture pursuant to redemptions or liquidation of the Class C units is $25.0 million. The holders of Class C units are not entitled to receive any other forms of distributions and are not entitled to any voting rights. In connection with the issuance of the Class C units, the San Francisco Venture agreed to spend $25.0 million on the development of infrastructure and/or parking facilities at the Company’s Candlestick development. At March 31, 2023 and December 31, 2022, $25.0 million of Class C units were outstanding and included in redeemable noncontrolling interest on the condensed consolidated balance sheets.

6.    CONSOLIDATED VARIABLE INTEREST ENTITY

The Holding Company conducts all of its operations through the Operating Company, a consolidated VIE, and as a result, substantially all of the Company’s assets and liabilities represent the assets and liabilities of the Operating Company, other than items attributed to income taxes and the payable pursuant to a tax receivable agreement (“TRA”). The Operating Company has investments in and consolidates the assets and liabilities of the San Francisco Venture, FP LP and FPL, all of which have also been determined to be VIEs.

The San Francisco Venture is a VIE as the other members of the venture, individually or as a group, are not able to exercise kick-out rights or substantive participating rights. The Company applied the variable interest model and determined that it is the primary beneficiary of the San Francisco Venture and, accordingly, the San Francisco Venture is consolidated in the Company’s results. In making that determination, the Company evaluated that the Operating Company has unilateral and unconditional power to make decisions in regards to the activities that significantly impact the economics of the VIE, which are the development of properties, marketing and sale of properties, acquisition of land and other real estate properties and obtaining land ownership or ground lease for the underlying properties to be developed. The Company is determined to have more-than-insignificant economic benefit from the San Francisco Venture because, excluding Class C units, the Operating Company can prevent or cause the San Francisco Venture from making distributions on its units, and the Operating Company would receive 99% of any such distributions made (assuming no distributions had been paid on the Class A Common Units of the Operating Company). In addition, the San Francisco Venture is only allowed to make a capital call on the Operating Company and not any other interest holders, which could be a significant financial risk to the Operating Company.

As of March 31, 2023, the San Francisco Venture had total combined assets of $1.33 billion, primarily comprised of $1.32 billion of inventories and $0.9 million in related party assets, and total combined liabilities of $68.3 million, including $61.5 million in related party liabilities.

As of December 31, 2022, the San Francisco Venture had total combined assets of $1.31 billion, primarily comprised of $1.31 billion of inventories and $0.8 million in related party assets, and total combined liabilities of $67.3 million, including $63.0 million in related party liabilities.

Those assets are owned by, and those liabilities are obligations of, the San Francisco Venture, not the Company. The San Francisco Venture’s operating subsidiaries are not guarantors of the Company’s obligations, and the assets held by the San Francisco Venture may only be used as collateral for the San Francisco Venture’s obligations. The creditors of the San Francisco Venture do not have recourse to the assets of the Operating Company, as the VIE’s primary beneficiary, or of the Holding Company.

The Company and the other members do not generally have an obligation to make capital contributions to the San Francisco Venture. In addition, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the San Francisco Venture. The Company does not guarantee any debt of the San Francisco Venture. However, the Operating Company has guaranteed the performance of payment by the San Francisco Venture in accordance with the redemption terms of the Class C units of the San Francisco Venture (see Note 5).

FP LP and FPL are VIEs because the other partners or members have disproportionately fewer voting rights, and substantially all of the activities of the entities are conducted on behalf of the other partners or members and their related parties. The Operating Company, or a wholly owned subsidiary of the Operating Company, is the primary beneficiary of FP LP and FPL.

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As of March 31, 2023, FP LP and FPL had combined assets of $1.1 billion, primarily comprised of $936.7 million of inventories, $39.6 million of intangibles and $80.4 million in related party assets, and total combined liabilities of $76.1 million, including $68.6 million in accounts payable and other liabilities and $7.5 million in related party liabilities.

As of December 31, 2022, FP LP and FPL had combined assets of $1.1 billion, primarily comprised of $927.9 million of inventories, $40.3 million of intangibles and $79.9 million in related party assets, and total combined liabilities of $77.2 million, including $70.5 million in accounts payable and other liabilities and $6.7 million in related party liabilities.

The Company evaluates its primary beneficiary designation on an ongoing basis and assesses the appropriateness of the VIE’s status when events have occurred that would trigger such an analysis. During the three months ended March 31, 2023 and 2022, there were no VIEs that were deconsolidated.

7.    INTANGIBLE ASSET, NET—RELATED PARTY

The intangible asset relates to the contract value of the incentive compensation provisions of the A&R DMA with the Great Park Venture. The intangible asset will be amortized over the expected contract period based on the pattern in which the economic benefits are expected to be received.

The carrying amount and accumulated amortization of the intangible asset as of March 31, 2023 and December 31, 2022 were as follows (in thousands):

	March 31, 2023		December 31, 2022
Gross carrying amount	$	129,705	$	129,705
Accumulated amortization	(90,095)		(89,448)
Net book value	$	39,610	$	40,257

Intangible asset amortization expense, as a result of revenue recognition attributable to incentive compensation, was $0.6 million for the three months ended March 31, 2023. No amortization expense was recognized during the three months ended March 31, 2022 as no incentive compensation revenue was recognized during the period. Amortization expense is included in the cost of management services in the accompanying condensed consolidated statements of operations and is included in the Great Park segment.

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8.     RELATED PARTY TRANSACTIONS

Related party assets and liabilities included in the Company’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Related Party Assets:
Contract assets (see Note 3)	$	80,414	$	79,863
Operating lease right-of-use asset (corporate office lease at Five Point Gateway Campus)	15,838		16,425
Other	862		838
	$	97,114	$	97,126
Related Party Liabilities:
Reimbursement obligation	$	61,542	$	62,990
Payable to holders of Management Company’s Class B interests	6,700		6,700
Operating lease liability (corporate office lease at Five Point Gateway Campus)	12,167		12,535
Accrued advisory fees	9,075		10,525
Other	1,144		336
	$	90,628	$	93,086

Development Management Agreement with the Great Park Venture (Incentive Compensation Contract Asset)

In 2010, the Great Park Venture, the Company’s equity method investee, engaged the Management Company under a development management agreement to provide management services to the Great Park Venture. The compensation structure in place consists of a base fee and incentive compensation. Incentive compensation is 9% of distributions available to be made by the Great Park Venture to its Legacy and Percentage Interest Holders. In December 2022, the Company and the Great Park Venture entered into an amendment to the A&R DMA to extend the term to December 31, 2024 (the "First Renewal Term"). If the A&R DMA is not extended by mutual agreement of the parties beyond December 31, 2024 and the Company is no longer providing management services subsequent to December 31, 2024, the Company will be entitled to 6.75% of distributions paid thereafter.

At March 31, 2023 and December 31, 2022, included in contract assets in the table above is $78.5 million and $77.4 million, respectively, attributed to Incentive Compensation revenue recognized but not yet due (see Note 3). Management fee revenues under the A&R DMA are included in management services—related party in the accompanying condensed consolidated statements of operations and are included in the Great Park segment. Management fee revenues under the A&R DMA were $4.1 million and $3.4 million for the three months ended March 31, 2023 and 2022, respectively.

9.    NOTES PAYABLE, NET

At March 31, 2023 and December 31, 2022, notes payable consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
7.875% Senior Notes due 2025	$	625,000	$	625,000
Unamortized debt issuance costs and discount	(3,965)		(4,349)
	$	621,035	$	620,651

Revolving Credit Facility

The Operating Company has a $125.0 million unsecured revolving credit facility with a maturity date in April 2024, with one option to extend the maturity date by an additional year, subject to the satisfaction of certain conditions including the approval of the administrative agent and lenders. As of March 31, 2023, no borrowings or letters of credit were outstanding on the Operating Company’s revolving credit facility.

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10.    TAX RECEIVABLE AGREEMENT

The Company is a party to a TRA with all of the holders of Class A Common Units of the Operating Company, all the holders of Class A units of the San Francisco Venture, and prior holders of Class A Common Units of the Operating Company and prior holders of Class A units of the San Francisco Venture that have exchanged their holdings for Class A common shares (as parties to the TRA, the “TRA Parties”). At March 31, 2023 and December 31, 2022, the Company’s condensed consolidated balance sheets included a liability of $173.2 million and $173.1 million, respectively, for payments expected to be made under certain components of the TRA which the Company deems to be probable and estimable. No TRA payments were made during the three months ended March 31, 2023 or 2022.

11.    COMMITMENTS AND CONTINGENCIES

The Company is subject to the usual obligations associated with entering into contracts for the purchase, development and sale of real estate, which the Company does in the routine conduct of its business. The operations of the Company are conducted through the Operating Company and its subsidiaries, and in some cases, the Holding Company will guarantee the payment by or performance of the Operating Company or its subsidiaries. The Company has operating leases for its corporate office and other facilities and the Holding Company is a guarantor to some of these lease agreements. Operating lease right-of-use assets are included in other assets or related party assets, and operating lease liabilities are included in accounts payable and other liabilities or related party liabilities on the condensed consolidated balance sheets and were as follows as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Operating lease right-of-use assets ($15,838 and $16,425 related party, respectively)	$	17,156	$	19,067
Operating lease liabilities ($12,167 and $12,535 related party, respectively)	$	13,783	$	15,705

In addition to operating lease payment guarantees, the Holding Company had other contractual payment guarantees as of March 31, 2023 totaling $10.2 million.

Performance and Completion Bonding Agreements

In the ordinary course of business and as a part of the entitlement and development process, the Company is required to provide performance bonds to ensure completion of certain development obligations. The Company had outstanding performance bonds of $320.0 million and $315.0 million as of March 31, 2023 and December 31, 2022, respectively.

Candlestick and The San Francisco Shipyard Disposition and Development Agreement

The San Francisco Venture is a party to a disposition and development agreement with the Successor to the Redevelopment Agency of the City and County of San Francisco (the “San Francisco Agency”) in which the San Francisco Agency has agreed to convey portions of Candlestick and The San Francisco Shipyard to the San Francisco Venture for development. The San Francisco Venture has agreed to reimburse the San Francisco Agency for reasonable costs and expenses actually incurred and paid by the San Francisco Agency in performing its obligations under the disposition and development agreement. The San Francisco Agency can also earn a return of certain profits generated from the development and sale of Candlestick and The San Francisco Shipyard if certain thresholds are met.

At each of March 31, 2023 and December 31, 2022, the San Francisco Venture had outstanding guarantees benefiting the San Francisco Agency for infrastructure and construction of certain park and open space obligations with aggregate maximum obligations of $198.3 million.

Letters of Credit

At each of March 31, 2023 and December 31, 2022, the Company had outstanding letters of credit totaling $1.0 million. These letters of credit were issued to secure various development and financial obligations. At each of March 31, 2023 and December 31, 2022, the Company had restricted cash and certificates of deposit of $1.0 million pledged as collateral under certain of the letters of credit agreements.

Legal Proceedings

Hunters Point Litigation

In May 2018, residents of the Bayview Hunters Point neighborhood in San Francisco filed a putative class action in San Francisco Superior Court naming Tetra Tech, Inc. and Tetra Tech EC, Inc., an independent contractor hired by the U.S. Navy to conduct testing and remediation of toxic radiological waste at The San Francisco Shipyard (“Tetra Tech”), Lennar and the Company as defendants (the “Bayview Action”). The plaintiffs allege that, among other things, Tetra Tech fraudulently misrepresented its test

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results and remediation efforts. The plaintiffs are seeking damages against Tetra Tech and the Company and have requested an injunction to prevent the Company and Lennar from undertaking any development activities at The San Francisco Shipyard. Given the preliminary nature of the claims, the Company cannot predict the outcome of the Bayview Action. The Company believes that it has meritorious defenses to the allegations in the Bayview Action and may have insurance and indemnification rights against third parties with respect to the claims.

Other

Other than the actions outlined above, the Company is also a party to various other claims, legal actions, and complaints arising in the ordinary course of business, the disposition of which, in the Company’s opinion, will not have a material adverse effect on the Company’s condensed consolidated financial statements.

As a significant land owner and developer of unimproved land it is possible that environmental contamination conditions could exist that would require the Company to take corrective action. In the opinion of the Company, such corrective actions, if any, would not have a material adverse effect on the Company’s condensed consolidated financial statements.

12.    SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information for the three months ended March 31, 2023 and 2022 were as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, all of which was capitalized to inventories	$	706	$	776
Noncash lease expense	$	1,116	$	1,301
NONCASH INVESTING AND FINANCING ACTIVITIES:
Adjustment to operating lease right-of-use assets from lease modification	$	(773)	$	—
Adjustment to liability recognized under TRA	$	140	$	(1,058)

Noncash lease expense is included within the depreciation and amortization adjustment to net loss on the Company’s condensed consolidated statements of cash flows.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022 (in thousands):

	March 31, 2023		March 31, 2022
Cash and cash equivalents	$	106,577	$	203,647
Restricted cash and certificates of deposit	992		1,330
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$	107,569	$	204,977

Amounts included in restricted cash and certificates of deposit represent amounts held as collateral on open letters of credit related to development obligations or because of other contractual obligations of the Company that require the restriction.

13.    SEGMENT REPORTING

The Company’s reportable segments consist of:

• Valencia—includes the community of Valencia being developed in northern Los Angeles County, California. The Valencia segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers. The Company’s investment in the Valencia Landbank Venture is also reported in the Valencia segment.

• San Francisco—includes the Candlestick and The San Francisco Shipyard communities located on bayfront property in the City of San Francisco, California. The San Francisco segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers.

• Great Park—includes the Great Park Neighborhoods being developed adjacent to and around the Orange County Great Park, a metropolitan park under construction in Orange County, California. This segment also includes management services provided by the Management Company to the Great Park Venture, the owner of the Great Park Neighborhoods. As of March 31, 2023, the Company had a 37.5% Percentage Interest in the Great Park Venture and accounted for the investment

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under the equity method. The reported segment information for the Great Park segment includes the results of 100% of the Great Park Venture at the historical basis of the venture, which did not apply push down accounting at acquisition date. The Great Park segment derives revenues at the Great Park Neighborhoods from sales of residential and commercial land sites to homebuilders, commercial developers and commercial buyers, sales of homes constructed and marketed under a fee build arrangement, and management services provided by the Company to the Great Park Venture.

• Commercial—includes the operations of the Gateway Commercial Venture, which owns an approximately 189,000 square foot office building at the Five Point Gateway Campus. The Five Point Gateway Campus is an office, medical and research and development campus located within the Great Park Neighborhoods and consists of four buildings and surrounding land. The Company and a subsidiary of Lennar lease portions of the building owned by the Gateway Commercial Venture. The Gateway Commercial Venture also owns approximately 50 acres of the surrounding commercial land with additional development rights at the campus. This segment also includes property management services provided by the Management Company to the Gateway Commercial Venture. As of March 31, 2023, the Company had a 75% interest in the Gateway Commercial Venture and accounted for the investment under the equity method. The reported segment information for the Commercial segment includes the results of 100% of the Gateway Commercial Venture at the historical basis of the venture.

     Segment operating results and reconciliations to the Company’s consolidated balances are as follows (in thousands):

	Revenues				Profit (Loss)
	Three Months Ended March 31,
	2023		2022		2023		2022
Valencia	$	1,303	$	1,159	$	(2,439)	$	(4,827)
San Francisco	162		180		(1,030)		(669)
Great Park	12,729		22,424		4,506		(2,071)
Commercial	2,261		2,041		(176)		215
Total reportable segments	16,455		25,804		861		(7,352)
Reconciling items:
Removal of results of unconsolidated entities—
Great Park Venture (1)	(8,600)		(18,980)		(2,743)		2,831
Gateway Commercial Venture (1)	(2,154)		(1,938)		283		(112)
Add equity in earnings (losses) from unconsolidated entities—
Great Park Venture	—		—		1,162		(1,301)
Gateway Commercial Venture	—		—		(212)		84
Corporate and unallocated (2)	—		—		(9,085)		(30,919)
Total consolidated balances	$	5,701	$	4,886	$	(9,734)	$	(36,769)

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in the Company’s consolidated results and balances as the Company accounts for its investment in each venture using the equity method of accounting.

(2) Corporate and unallocated activity is primarily comprised of corporate general and administrative expenses and restructuring expenses.

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Segment assets and reconciliations to the Company’s consolidated balances are as follows (in thousands):

	March 31, 2023		December 31, 2022
Valencia	$	978,669	$	972,028
San Francisco	1,326,098		1,314,308
Great Park	915,945		916,909
Commercial	90,963		91,629
Total reportable segments	3,311,675		3,294,874
Reconciling items:
Removal of unconsolidated balances of Great Park Venture (1)	(797,729)		(799,174)
Removal of unconsolidated balances of Gateway Commercial Venture (1)	(90,963)		(91,629)
Other eliminations (2)	(52)		(174)
Add investment balance in Great Park Venture	290,188		289,026
Add investment balance in Gateway Commercial Venture	40,483		40,695
Corporate and unallocated (3)	124,880		152,166
Total consolidated balances	$	2,878,482	$	2,885,784

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture balances, which are included in the Great Park segment and Commercial segment balances at 100% of each venture’s historical basis, respectively, but are not included in the Company’s consolidated balances as the Company accounts for its investment in each venture using the equity method of accounting.

(2) Represents intersegment balances that eliminate in consolidation.

(3) Corporate and unallocated assets consist of cash and cash equivalents, receivables, right-of-use assets and prepaid expenses.

14.     SHARE-BASED COMPENSATION

The following table summarizes share-based equity compensation activity for the three months ended March 31, 2023:

	Share-Based Awards (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested at January 1, 2023	2,166	$	3.77
Granted	3,040	$	1.81
Forfeited	—	$	—
Vested	(636)	$	6.33
Nonvested at March 31, 2023	4,570	$	2.11

Share-based compensation expense was $0.8 million and $4.1 million for the three months ended March 31, 2023 and 2022, respectively. All share-based compensation for the three months ended March 31, 2023 is included in selling, general, and administrative expenses on the accompanying condensed consolidated statements of operations. In February 2022, the Company accelerated the expense attributed to the outstanding restricted share awards of two former officers of the Company resulting from a modification of the required service condition of the awards. As a result, for the three months ended March 31, 2022, share-based compensation expense of $3.0 million is included in restructuring expense and $1.1 million is included in selling, general, and administrative expenses on the accompanying condensed consolidated statement of operations.

The estimated fair value at vesting of share-based awards that vested during the three months ended March 31, 2023 was $1.5 million. In January 2023 and 2022, the Company reacquired vested restricted Class A common shares for $0.2 million and $2.7 million, respectively, for the purpose of settling tax withholding obligations of employees. The reacquisition cost is based on the fair value of the Company’s Class A common shares on the date the tax obligation is incurred.

15.    EMPLOYEE BENEFIT PLANS

Retirement Plan—The Newhall Land and Farming Company Retirement Plan (the “Retirement Plan”) is a defined benefit plan that is funded by the Company and qualified under the Employee Retirement Income Security Act. The Retirement Plan was frozen in 2004.

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The components of net periodic cost (benefit) for the three months ended March 31, 2023 and 2022, are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Net periodic cost (benefit):
Interest cost	$	202	$	136
Expected return on plan assets	(222)		(261)
Amortization of net actuarial loss	41		13
Net periodic cost (benefit)	$	21	$	(112)

Net periodic cost (benefit) does not include a service cost component as a result of the Retirement Plan being frozen. All other components of net periodic benefit are included in other income on the condensed consolidated statements of operations.

16.    INCOME TAXES

Upon formation, the Holding Company elected to be treated as a corporation for U.S. federal, state, and local tax purposes. All operations are carried on through the Holding Company’s subsidiaries, the majority of which are pass-through entities that are generally not subject to federal or state income taxation, as all of the taxable income, gains, losses, deductions, and credits are passed through to the partners. The Holding Company is responsible for income taxes on its allocable share of the Operating Company’s income or gain.

Other than a small income tax provision attributed to one of the Company’s consolidated subsidiary corporations, during the three months ended March 31, 2023 and 2022, the Company recorded no provision or benefit for income taxes (after application of an increase in the Company’s valuation allowance) on pre-tax loss of $9.7 million and $36.8 million, respectively. The effective tax rates for the three months ended March 31, 2023 and 2022, differ from the 21% federal statutory rate and applicable state statutory rates primarily due to the Company’s valuation allowance on its book losses, disallowance of executive compensation expenses not deductible for tax, and to the pre-tax portion of income and losses that are passed through to the other partners of the Operating Company and the San Francisco Venture.

Largely due to a history of book losses, the Company continues to record a valuation allowance against its federal and state net deferred tax assets.

17.    FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS AND DISCLOSURES

ASC Topic 820, Fair Value Measurement, emphasizes that a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. The following hierarchy classifies the inputs used to determine fair value into three levels:

Level 1—Quoted prices for identical instruments in active markets

Level 2—Quoted prices for similar instruments in active markets or inputs, other than quoted prices, that are observable for the instrument either directly or indirectly

Level 3—Significant inputs to the valuation model are unobservable

At each reporting period, the Company evaluates the fair value of its financial instruments compared to carrying values. Other than the Company’s notes payable, net, the carrying amount of the Company’s financial instruments, which includes cash and cash equivalents, restricted cash and certificates of deposit, certain related party assets and liabilities, and accounts payable and other liabilities, approximated the Company’s estimates of fair value at both March 31, 2023 and December 31, 2022.

The fair value of the Company’s notes payable, net, are estimated based on quoted market prices or discounting the expected cash flows based on rates available to the Company (level 2). At March 31, 2023, the estimated fair value of notes payable, net was $563.8 million compared to a carrying value of $621.0 million. At December 31, 2022, the estimated fair value of notes payable, net was $525.5 million compared to a carrying value of $620.7 million. During the three months ended March 31, 2023 and 2022, the Company had no assets that were measured at fair value on a nonrecurring basis.

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18.    EARNINGS PER SHARE

The Company uses the two-class method in its computation of earnings per share. The Company’s Class A common shares and Class B common shares are entitled to receive distributions at different rates, with each Class B common share receiving 0.03% of the distributions paid on each Class A common share. Under the two-class method, the Company’s net income available to common shareholders is allocated between the two classes of common shares on a fully-distributed basis and reflects residual net income after amounts attributed to noncontrolling interests. In the event of a net loss, the Company determined that both classes share in the Company’s losses, and they share in the losses using the same mechanism as the distributions. The Company also has restricted share awards and performance restricted share awards (see Note 14) that have a right to non-forfeitable dividends while unvested and are contemplated as participating when the Company is in a net income position. These awards participate in distributions on a basis equivalent to other Class A common shares but do not participate in losses.

No distributions on common shares were declared for the three months ended March 31, 2023 or 2022.

Diluted income (loss) per share calculations for both Class A common shares and Class B common shares contemplate adjustments to the numerator and the denominator under the if-converted method for the convertible Class B common shares, the exchangeable Class A units of the San Francisco Venture and the exchangeable Class A Common Units of the Operating Company. The Company uses the treasury stock method or the two-class method when evaluating dilution for RSUs, restricted shares, and performance restricted units and shares. The more dilutive of the two methods is included in the calculation for diluted income (loss) per share.

The following table summarizes the basic and diluted loss per share calculations for the three months ended March 31, 2023 and 2022 (in thousands, except shares and per share amounts):    

	Three Months Ended March 31,
	2023		2022
Numerator:
Net loss attributable to the Company	$	(4,536)	$	(17,130)
Adjustments to net loss attributable to the Company	13		122
Net loss attributable to common shareholders	$	(4,523)	$	(17,008)
Numerator—basic common shares:
Numerator for basic net loss available to Class A common shareholders	$	(4,522)	$	(17,002)
Numerator for basic net loss available to Class B common shareholders	$	(1)	$	(6)
Numerator—diluted common shares:
Net loss attributable to common shareholders	$	(4,523)	$	(17,008)
Reallocation of loss upon assumed exchange of dilutive potential securities	(85)		(477)
Allocation of diluted net loss among common shareholders	$	(4,608)	$	(17,485)
Numerator for diluted net loss available to Class A common shareholders	$	(4,607)	$	(17,479)
Numerator for diluted net loss available to Class B common shareholders	$	(1)	$	(6)
Denominator:
Basic weighted average Class A common shares outstanding	68,705,223		68,167,586
Diluted weighted average Class A common shares outstanding	68,706,164		70,050,872
Basic and diluted weighted average Class B common shares outstanding	79,233,544		79,233,544
Basic loss per share:
Class A common shares	$	(0.07)	$	(0.25)
Class B common shares	$	(0.00)	$	(0.00)
Diluted loss per share:
Class A common shares	$	(0.07)	$	(0.25)
Class B common shares	$	(0.00)	$	(0.00)
Anti-dilutive potential RSUs	847,532		—
Anti-dilutive potential Performance RSUs	3,123,408		—
Anti-dilutive potential Restricted Shares (weighted average)	346,030		1,037,064
Anti-dilutive potential Performance Restricted Shares (weighted average)	—		100,292
Anti-dilutive potential Class A common shares from exchanges (weighted average)	76,120,180		76,120,180

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19.    ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss attributable to the Company consists of unamortized defined benefit pension plan net actuarial losses that totaled $3.0 million and $3.0 million at March 31, 2023 and December 31, 2022, respectively, net of tax benefits of $0.8 million and $0.8 million, respectively. At both March 31, 2023 and December 31, 2022, the Company held a full valuation allowance related to the accumulated tax benefits. Accumulated other comprehensive loss of $1.8 million and $1.9 million is included in noncontrolling interests at March 31, 2023 and December 31, 2022, respectively. Net actuarial gains or losses are re-determined annually or upon remeasurement events and principally arise from changes in the rate used to discount benefit obligations and differences between expected and actual returns on plan assets. Reclassifications from accumulated other comprehensive loss to net loss attributable to the Company related to amortization of net actuarial losses were approximately $25,000 and $8,000, net of taxes, for the three months ended March 31, 2023 and 2022, respectively, and are included in other miscellaneous income in the accompanying condensed consolidated statements of operations.

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ITEM 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

The following discussion contains management’s discussion and analysis of our financial condition and results of operations and should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included under Part I, Item 1 of this report and our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. “Us,” “we,” and “our” refer to Five Point Holdings, LLC, together with its consolidated subsidiaries. This discussion contains forward-looking statements and involves numerous risks and uncertainties, including but not limited to those described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as well as other risks and uncertainties detailed from time to time in our subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Actual results could differ materially from those set forth in any forward-looking statements. See “Cautionary Statement Regarding Forward-Looking Statements.”

Overview

We conduct all of our business in or through our operating company, Five Point Operating Company, LP (the “operating company”). We are, through a wholly owned subsidiary, the sole managing general partner and owned, as of March 31, 2023, approximately 62.6% of the operating company. The operating company directly or indirectly owns equity interests in:

•Five Point Land, LLC, which owns The Newhall Land & Farming Company, a California limited partnership, the entity that is developing Valencia, our community in northern Los Angeles County, California;

•The Shipyard Communities, LLC (the “San Francisco Venture”), which is developing Candlestick and The San Francisco Shipyard, our communities in the City of San Francisco, California;

•Heritage Fields LLC (the “Great Park Venture”), which is developing Great Park Neighborhoods, our community in Orange County, California;

•Five Point Office Venture Holdings I, LLC (the “Gateway Commercial Venture”), which owns portions of the Five Point Gateway Campus, a commercial office, research and development and medical campus located within the Great Park Neighborhoods; and

•Five Point Communities, LP and Five Point Communities Management, Inc. (together, the “management company”), which provide development and property management services for the Great Park Neighborhoods and the Five Point Gateway Campus.

The operating company consolidates and controls the management of all of these entities except for the Great Park Venture and the Gateway Commercial Venture. The operating company owns a 37.5% percentage interest in the Great Park Venture and a 75% interest in the Gateway Commercial Venture and accounts for its interest in both using the equity method.

Operational Highlights

During the first quarter of the 2023, we continued to focus on execution of our three main priorities: generating revenue and positive cash flow, managing and limiting our capital spend, and managing our selling, general and administrative costs. No land sales closed during the first quarter at our communities, however, we did generate cash inflow of $17.7 million in communities facilities district reimbursements for portions of infrastructure costs we previously incurred in Valencia. As a result of our continued focus on cost rationalization and optimization, our selling, general and administrative costs were down 18% in the first quarter of 2023 compared to the same period in 2022.

The combination of a moderation in mortgage rates from their peaks in the fourth quarter of 2022, along with home buyers adjusting to the new mortgage interest rate environment and the limited inventory in the existing home markets, began to drive increased home buyer activity at our master planned communities during the first quarter of 2023. At Valencia, guest builders sold 75 homes during the first quarter of 2023 compared to 49 homes in the fourth quarter of 2022, increasing total homes sold to 1,022 since sales began in May 2021. At the Great Park Venture, in which we have a 37.5% percentage interest and manage all aspects of the development cycle, guest builders sold a total of 255 homes at the Great Park Neighborhoods during the first quarter of 2023 compared to 113 homes in the fourth quarter of 2022. Although there remains uncertainty with respect to the interest rate environment and other macroeconomic factors, we believe that builder demand will allow us to execute on both residential and commercial land sales over the remainder of 2023.

At March 31, 2023, we had $106.6 million in cash and $125.0 million available under our revolving credit facility, giving us total liquidity of $231.6 million.

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Results of Operations

The timing of our land sale revenues is influenced by several factors, including the sequencing of the planning and development process and market conditions at our communities. As a result, we have historically experienced, and expect to continue to experience, variability in results of operations between comparable periods.

The following table summarizes our consolidated historical results of operations for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Statement of Operations Data
Revenues
Land sales	$	(25)	$	557
Land sales—related party	624		1
Management services—related party	4,236		3,547
Operating properties	866		781
Total revenues	5,701		4,886
Costs and expenses
Land sales	—		—
Management services	2,366		2,684
Operating properties	1,172		1,839
Selling, general, and administrative	13,752		16,791
Restructuring	—		19,437
Total costs and expenses	17,290		40,751
Other income (expense)
Interest income	836		21
Miscellaneous	(21)		112
Total other income	815		133
Equity in earnings (loss) from unconsolidated entities	1,048		(1,032)
Loss before income tax provision	(9,726)		(36,764)
Income tax provision	(8)		(5)
Net loss	(9,734)		(36,769)
Less net loss attributable to noncontrolling interests	(5,198)		(19,639)
Net loss attributable to the company	$	(4,536)	$	(17,130)

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Revenues. Revenues increased by $0.8 million, or 16.7%, to $5.7 million for the three months ended March 31, 2023, from $4.9 million for the three months ended March 31, 2022. The increase in revenues was primarily due to an increase in management services revenue at our Great Park segment during the three months ended March 31, 2023.

Selling, general, and administrative. Selling, general, and administrative expenses decreased by $3.0 million, or 18.1%, to $13.8 million for the three months ended March 31, 2023, from $16.8 million for the three months ended March 31, 2022. The decrease was mainly attributable to a decrease in employee related and selling and marketing expenses. We have had an approximately 38% reduction in headcount since the end of 2021. Most of the reductions were the result of layoffs that occurred at the end of the first quarter of 2022.

Restructuring. On February 9, 2022, Daniel Hedigan was appointed as our Chief Executive Officer. Preceding Mr. Hedigan’s appointment, Emile Haddad stepped down from his roles as Chairman, Chief Executive Officer and President effective as of September 30, 2021 and transitioned into a senior advisory role pursuant to a three-year advisory agreement. Mr. Haddad remains a member of the Board of Directors serving as Chairman Emeritus. Concurrent with Mr. Hedigan’s appointment, Lynn Jochim transitioned from her position as President and Chief Operating Officer into an advisory role pursuant to a three-year advisory agreement. Upon the appointment of Mr. Hedigan as our Chief Executive Officer, we accrued a related party liability of $15.6 million attributed to advisory agreement payments due to Mr. Haddad and Ms. Jochim over the term of the respective advisory agreements. In addition, we determined the service condition associated with Mr. Haddad and Ms. Jochim’s unvested restricted share awards had been modified. As a result of this modification, we recognized approximately $3.0 million in share-based compensation expense as a restructuring cost during the three months ended March 31, 2022.

In addition to our executive management restructuring activities, during the three months ended March 31, 2022, we incurred $0.9 million in restructuring costs for severance benefits from layoffs that occurred in March 2022.

Equity in earnings (loss) from unconsolidated entities. Our consolidated results reflect our share in the earnings or losses of our interests in our unconsolidated entities, including the Great Park Venture and the Gateway Commercial Venture, within equity in earnings (loss) from unconsolidated entities on our condensed consolidated statement of operations. Our segment results for the Great Park segment and the Commercial segment present the results of the Great Park Venture and the Gateway Commercial Venture at the book basis of the ventures within the respective segments.

Equity in earnings from unconsolidated entities was $1.0 million for the three months ended March 31, 2023, an increase from a loss of $1.0 million for the three months ended March 31, 2022. The increase was primarily a result of recognizing our share of the net income generated by the Great Park Venture during the three months ended March 31, 2023 compared to net loss generated by the Great Park Venture during the three months ended March 31, 2022.

Income taxes. Other than a small tax provision incurred by one of our consolidated subsidiary corporations, pre-tax loss of $9.7 million and $36.8 million for the three months ended March 31, 2023 and 2022, respectively, resulted in no tax benefit (after application of an increase in the Company’s valuation allowance of $1.4 million and $4.2 million, respectively). We assessed the realization of our net deferred tax asset and the need for a valuation allowance and determined that at March 31, 2023, it was more likely than not that the net deferred tax asset was not realizable and resulted in a net deferred tax liability after application of the valuation allowance. Our effective tax rate, before changes in valuation allowance, for the three months ended March 31, 2023 was substantially similar to our effective tax rate, before changes in valuation allowance, for the three months ended March 31, 2022.

Net loss attributable to noncontrolling interests. Until exchanged for our Class A common shares or, at our election, cash, noncontrolling interests represent interests held by other partners in the operating company and members of the San Francisco Venture. Net loss attributable to the noncontrolling interests on the condensed consolidated statement of operations represents the portion of losses attributable to the interests in our subsidiaries held by the noncontrolling interests.

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Segment Results and Financial Information

Our four reportable operating segments include our three community segments, Valencia, San Francisco and Great Park, and our Commercial segment:

•Our Valencia segment includes operating results related to the Valencia community and agricultural operations in Los Angeles and Ventura Counties, California. Our investment in the Valencia Landbank Venture is also reported in the Valencia segment.

•Our San Francisco segment includes operating results for the Candlestick and The San Francisco Shipyard communities.

•Our Great Park segment includes operating results for the Great Park Neighborhoods community as well as development management services provided by the management company for the Great Park Venture.

•Our Commercial segment includes the operating results of the Gateway Commercial Venture’s ownership in the Five Point Gateway Campus as well as property management services provided by the management company for the Gateway Commercial Venture.

The following tables reconcile the results of operations of our segments to our consolidated results for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31, 2023
	Valencia		San Francisco		Great Park		Commercial		Total reportable segments		Corporate and unallocated		Total under management		Removal of unconsolidated entities(1)		Total consolidated
REVENUES:
Land sales	$	(25)	$	—	$	3,133	$	—	$	3,108	$	—	$	3,108	$	(3,133)	$	(25)
Land sales—related party	624		—		5,467		—		6,091		—		6,091		(5,467)		624
Management services—related party(2)	—		—		4,129		107		4,236		—		4,236		—		4,236
Operating properties	704		162		—		2,154		3,020		—		3,020		(2,154)		866
Total revenues	1,303		162		12,729		2,261		16,455		—		16,455		(10,754)		5,701
COSTS AND EXPENSES:
Land sales	—		—		—		—		—		—		—		—		—
Management services(2)	—		—		2,366		—		2,366		—		2,366		—		2,366
Operating properties	1,172		—		—		784		1,956		—		1,956		(784)		1,172
Selling, general, and administrative	2,647		1,193		3,328		1,120		8,288		9,912		18,200		(4,448)		13,752
Management fees—related party	—		—		4,460		—		4,460		—		4,460		(4,460)		—
Total costs and expenses	3,819		1,193		10,154		1,904		17,070		9,912		26,982		(9,692)		17,290
OTHER (EXPENSE) INCOME:
Interest income	—		1		1,301		—		1,302		835		2,137		(1,301)		836
Interest expense	—		—		—		(533)		(533)		—		(533)		533		—
Miscellaneous	(21)		—		—		—		(21)		—		(21)		—		(21)
Total other (expense) income	(21)		1		1,301		(533)		748		835		1,583		(768)		815
EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES	98		—		630		—		728		—		728		320		1,048
SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME TAX PROVISION	(2,439)		(1,030)		4,506		(176)		861		(9,077)		(8,216)		(1,510)		(9,726)
INCOME TAX PROVISION	—		—		—		—		—		(8)		(8)		—		(8)
SEGMENT (LOSS) PROFIT/NET LOSS	$	(2,439)	$	(1,030)	$	4,506	$	(176)	$	861	$	(9,085)	$	(8,224)	$	(1,510)	$	(9,734)

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting.

(2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

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	Three Months Ended March 31, 2022
	Valencia		San Francisco		Great Park		Commercial		Total reportable segments		Corporate and unallocated		Total under management		Removal of unconsolidated entities(1)		Total consolidated
REVENUES:
Land sales	$	557	$	—	$	330	$	—	$	887	$	—	$	887	$	(330)	$	557
Land sales—related party	1		—		1,489		—		1,490		—		1,490		(1,489)		1
Home sales	—		—		17,161		—		17,161		—		17,161		(17,161)		—
Management services—related party(2)	—		—		3,444		103		3,547		—		3,547		—		3,547
Operating properties	601		180		—		1,938		2,719		—		2,719		(1,938)		781
Total revenues	1,159		180		22,424		2,041		25,804		—		25,804		(20,918)		4,886
COSTS AND EXPENSES:
Land sales	—		—		—		—		—		—		—		—		—
Home sales	—		—		12,902		—		12,902		—		12,902		(12,902)		—
Management services(2)	—		—		2,684		—		2,684		—		2,684		—		2,684
Operating properties	1,839		—		—		440		2,279		—		2,279		(440)		1,839
Selling, general, and administrative	4,444		849		7,561		1,079		13,933		11,498		25,431		(8,640)		16,791
Restructuring	—		—		—		—		—		19,437		19,437		—		19,437
Management fees—related party	—		—		1,503		—		1,503		—		1,503		(1,503)		—
Total costs and expenses	6,283		849		24,650		1,519		33,301		30,935		64,236		(23,485)		40,751
OTHER INCOME (EXPENSE):
Interest income	—		—		155		—		155		21		176		(155)		21
Interest expense	—		—		—		(307)		(307)		—		(307)		307		—
Miscellaneous	112		—		—		—		112		—		112		—		112
Total other income (expense)	112		—		155		(307)		(40)		21		(19)		152		133
EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES	185		—		—		—		185		—		185		(1,217)		(1,032)
SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME TAX PROVISION	(4,827)		(669)		(2,071)		215		(7,352)		(30,914)		(38,266)		1,502		(36,764)
INCOME TAX PROVISION	—		—		—		—		—		(5)		(5)		—		(5)
SEGMENT (LOSS) PROFIT/NET LOSS	$	(4,827)	$	(669)	$	(2,071)	$	215	$	(7,352)	$	(30,919)	$	(38,271)	$	1,502	$	(36,769)

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting.

(2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

Valencia Segment

Our Valencia property consists of approximately 15,000 acres in northern Los Angeles County and is designed to include approximately 21,500 homesites and approximately 11.5 million square feet of commercial space. The current communities under development in Valencia complement the neighboring communities that were previously developed by us, where approximately 20,000 households reside and approximately 60,000 people work. We began selling homesites in the first development area at Valencia in 2019.

Selling, general, and administrative. Selling, general, and administrative expenses decreased by $1.8 million, or 40.4%, to $2.6 million for the three months ended March 31, 2023, from $4.4 million for the three months ended March 31, 2022. The decrease was mainly attributable to a decrease in community related selling and marketing expenses and a decrease in employee related expenses.

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San Francisco Segment

Located almost equidistant between downtown San Francisco and the San Francisco International Airport, Candlestick and The San Francisco Shipyard consist of approximately 800 acres of bayfront property in the City of San Francisco. Candlestick and The San Francisco Shipyard are designed to include approximately 12,000 homesites and approximately 6.3 million square feet of commercial space.

In October 2019, we received approval from the City of San Francisco on a revised development plan for the first phase of Candlestick that is currently planned to include approximately 750,000 square feet of office space, 1,600 homes, and 300,000 square feet of lifestyle amenities centered around retail and entertainment. As currently planned, Candlestick ultimately is expected to include approximately 7,000 homes.

Our development at Candlestick and The San Francisco Shipyard is not subject to San Francisco’s Proposition M growth control measure, which imposes annual limitations on office development and is applicable to all other developers with projects in the city. This means the full amount of permitted commercial square footage at Candlestick and The San Francisco Shipyard can be constructed as we determine, including all at once, even though Proposition M may delay new office developments elsewhere in San Francisco. In 2018, our disposition and development agreement with the City of San Francisco was amended to increase the total amount of commercial use at Candlestick and The San Francisco Shipyard by over two million square feet and to increase our total commercial space to approximately 6.3 million square feet.

At The San Francisco Shipyard, approximately 408 acres are still owned by the U.S. Navy and will not be conveyed to us until the U.S. Navy satisfactorily completes its finding of suitability to transfer, or “FOST,” process, which involves multiple levels of environmental and governmental investigation, analysis, review, comment and approval. Based on our discussions with the U.S. Navy, we had previously expected the U.S. Navy to deliver this property between 2019 and 2022. However, allegations that Tetra Tech, Inc. and Tetra Tech EC, Inc. (collectively, “Tetra Tech”), contractors hired by the U.S. Navy, misrepresented sampling results at The San Francisco Shipyard have resulted in data reevaluation, governmental investigations, criminal proceedings, lawsuits, and a determination by the U.S. Navy and other regulatory agencies to undertake additional sampling. As part of the 2018 Congressional spending bill, the U.S. Department of Defense allocated $36.0 million to help fund resampling efforts at The San Francisco Shipyard. An additional $60.4 million to fund resampling efforts was approved as part of a 2019 military construction spending bill. These activities have delayed the remaining land transfers from the U.S. Navy and could lead to additional legal claims or government investigations, all of which could in turn further delay or impede our future development of such parcels. Our development plans were designed with the flexibility to adjust for potential land transfer delays, and we have the ability to shift the phasing of our development activities to account for potential delays caused by U.S. Navy retesting, but there can be no assurance that these matters and other related matters that may arise in the future will not materially impact our development plans.

We have been, and may in the future be, named as a defendant in lawsuits seeking damages and other relief arising out of alleged contamination at The San Francisco Shipyard and Tetra Tech’s alleged misrepresentations of related sampling work. See Note 11 to our condensed consolidated financial statements included under Part I, Item 1 of this report.

Great Park Segment

We have a 37.5% percentage interest in the Great Park Venture, and we account for our investment using the equity method of accounting. We have a controlling interest in the management company, an entity which performs development management services at Great Park Neighborhoods. We do not include the Great Park Venture as a consolidated subsidiary in our condensed consolidated financial statements. However, because of the relationship between the management company and the Great Park Venture, we assess our investment in the Great Park Venture based on the financial information for the Great Park Venture in its entirety, and not just our equity interest in it. As a result, our Great Park segment consists of the operations of both the Great Park Venture and the development management services provided by the management company at the Great Park Venture.

Great Park Neighborhoods consists of approximately 2,100 acres in Orange County and is being built around the approximately 1,300 acre Orange County Great Park, a metropolitan public park that is under construction. Great Park Neighborhoods is designed to include approximately 10,500 homesites and approximately 4.9 million square feet of commercial space.

Interests in the Great Park Venture are either “percentage interests” or “legacy interests.” Holders of the legacy interests were entitled to receive priority distributions in an aggregate amount equal to $476.0 million and up to an additional $89.0 million from participation in subsequent distributions. The holders of percentage interests are entitled to all other distributions. As of December 31, 2021, the Great Park Venture had fully satisfied the $476.0 million priority distribution rights, and the remaining maximum participating legacy interest distribution rights at March 31, 2023 were $66.3 million. The remaining $66.3 million legacy interest will be paid on a pro-rata basis, with approximately 10% of future distributions paid to the holders of legacy interests and approximately 90% of such distributions paid to the holders of the percentage interests, until such time as the remaining balance has been fully paid.

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Land sales and related party land sales revenues. During the three months ended March 31, 2023 and 2022, revenues were primarily generated from changes in estimates of variable land sale consideration, including profit participation, from those amounts previously recorded by the Great Park Venture. Land sales and related party land sales revenues increased to $8.6 million for the three months ended March 31, 2023, from $1.8 million for the three months ended March 31, 2022. The change was primarily a result of an increase in profit participation.

Home sale revenues. The Great Park Venture had a fee build agreement with an unrelated third party (“fee builder”) that the Great Park Venture contracted to build and act as a sales agent for 38 homesites within the Great Park Neighborhoods. The fee builder initially incurred all costs to build, market and sell the residential homes, and the Great Park Venture reimbursed the fee builder as construction progressed and paid the fee builder certain fees during the construction phase of the homes and when homes were sold to homebuyers. All homes subject to the fee build agreement had been sold and closed escrow as of June 30, 2022. During the three months ended March 31, 2022, the Great Park Venture closed the sales of nine homes to homebuyers generating $17.2 million in home sale revenues.

Cost of home sales. Cost of home sales includes an allocation of land basis for each home sold in addition to home construction costs the Great Park Venture reimbursed to the fee builder and fees paid to the fee builder for the services provided. During the three months ended March 31, 2022, the Great Park Venture recognized $12.9 million in cost of home sales.

Management services costs and expenses. Included within management services costs and expenses are general and administrative costs and expenses incurred by the management company’s project team that is managing the development of the Great Park Neighborhoods. We also include amortization expense related to the intangible asset attributable to the incentive compensation provisions of the development management agreement with the Great Park Venture within management services costs and expenses. Corporate and non-project team salaries and overhead are not allocated to management services costs and expenses or to our reportable segments and are reported in selling, general, and administrative costs in the condensed consolidated statements of operations. Management services costs and expenses decreased by $0.3 million, or 11.8%, to $2.4 million for the three months ended March 31, 2023, from $2.7 million for the three months ended March 31, 2022. The decrease was mainly attributable to a decrease in employee related project team expenses, offset by an increase in intangible asset amortization expense recognized during the three months ended March 31, 2023.

Selling, general, and administrative. Selling, general, and administrative expenses decreased by $4.2 million, or 56.0%, to $3.3 million for the three months ended March 31, 2023, from $7.6 million for the three months ended March 31, 2022. The lower expense during the three months ended March 31, 2023 was mainly attributable to a decrease in marketing expenses and the elimination of the variable cost reimbursement component under the development management agreement that became effective in the second quarter of 2022. In the first quarter of 2022, project team and certain other administrative costs that were reimbursed to the management company were included in selling, general and administrative costs.

Management fees—related party. Management fees increased by $3.0 million, or 196.7%, to $4.5 million for the three months ended March 31, 2023, from $1.5 million for the three months ended March 31, 2022. Management fees incurred by the Great Park Venture are comprised of base development management fees and incentive compensation fees. In general, incentive compensation fees will be paid based on a percentage of distributions made to holders of the Great Park Venture’s percentage interests. When payments are deemed probable of being made, the Great Park Venture recognizes the expense ratably over the period services are expected to be provided. When estimates of the amount of incentive compensation probable of being paid change, the Great Park Venture records a cumulative adjustment in the period in which the estimate changes. The increase in management fees—related party was mainly attributable to the higher base fee that was in effect in the first quarter of 2023 compared to a lower base fee in the first quarter of 2022. The base fee was increased to $12.0 million annually in the second quarter of 2022 in connection with the elimination of the variable cost reimbursement component of the development management agreement.

The table below reconciles the Great Park segment results to the equity in earnings (loss) from our investment in the Great Park Venture that is reflected in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Segment profit (loss) from operations	$	4,506	$	(2,071)
Less net income of management company attributed to the Great Park segment	1,763		760
Net income (loss) of the Great Park Venture	2,743		(2,831)
The Company’s share of net income (loss) of the Great Park Venture	1,029		(1,062)
Basis difference accretion (amortization)	133		(239)
Equity in earnings (loss) from the Great Park Venture	$	1,162	$	(1,301)

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Commercial Segment

We have a 75% interest in the Gateway Commercial Venture that is held through a wholly owned subsidiary of the operating company, and we serve as the manager of the Gateway Commercial Venture. However, the manager’s authority is limited. Major decisions by the Gateway Commercial Venture generally require unanimous approval by an executive committee composed of two people designated by us and two people designated by another investor. Some decisions require approval by all of the members of the Gateway Commercial Venture. We do not include the Gateway Commercial Venture as a consolidated subsidiary in our condensed consolidated financial statements. However, as a result of our 75% economic interest and our role as manager, we assess our investment in the Gateway Commercial Venture based on the financial information of the Gateway Commercial Venture in its entirety, and we include the Gateway Commercial Venture’s financial results within the Commercial segment. Additionally, the management company has been engaged by the Gateway Commercial Venture to provide property management services to the Five Point Gateway Campus. We include the management company’s results of operations related to these property management services within the Commercial segment.

The Five Point Gateway Campus is a commercial campus consisting of approximately 73 acres of land in the Great Park Neighborhoods acquired by the Gateway Commercial Venture in 2017. The Five Point Gateway Campus currently includes approximately one million square feet planned for research and development, medical and office space in four buildings. In 2020, the Gateway Commercial Venture sold three of the buildings and approximately 11 acres of land at the campus, generating $463.0 million in gross proceeds. Our corporate headquarters are located in the fourth building, which remains owned by the Gateway Commercial Venture. In addition to the fourth building, the Gateway Commercial Venture owns approximately 50 acres of commercial land with additional development rights at the campus.

The table below reconciles the Commercial segment results to the equity in (loss) earnings from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022.

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Segment (loss) profit from operations	$	(176)	$	215
Less net income of management company attributed to the Commercial segment	107		103
Net (loss) income of the Gateway Commercial Venture	(283)		112
Equity in (loss) earnings from the Gateway Commercial Venture	$	(212)	$	84

Liquidity and Capital Resources

As of March 31, 2023, we had $106.6 million of consolidated cash and cash equivalents compared to $131.8 million at December 31, 2022. As of March 31, 2023, no funds had been drawn on and no letters of credit were outstanding on the operating company’s $125.0 million unsecured revolving credit facility.

Our short-term cash needs consist primarily of general and administrative expenses and development expenditures at Valencia and the Candlestick and The San Francisco Shipyard communities, interest payments under our senior notes and payments under a related party reimbursement obligation. Reimbursement payments may be deferred when our related party receives an extension on the maturity date of the associated EB-5 loan liability. Through the first quarter of 2023, approximately $9.0 million in related party reimbursement obligations that were previously expected to be paid in the first quarter of 2023 have been deferred to the first quarter of 2024. Our related party has a history of receiving maturity date extensions, however, such further extensions are not within our control and there can be no assurance that any such extensions will be obtained in the future.

The development stages of our communities continue to require significant cash outlays on both a short-term and long-term basis, and we expect to invest significant amounts on continued horizontal development at Valencia over the next 12 months. We manage our development activities and expenditures to coincide with projected demand for homesites by our guest builders with the objective of maintaining an appropriate level of liquidity. We expect to meet our cash requirements for at least the next 12 months with available cash, distributions from our unconsolidated entities, collection of management fees under our development management agreement with the Great Park Venture, proceeds from land sales, reimbursements from public financing in Valencia and access to financing sources, including our revolving credit facility.

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Our long-term cash needs relate primarily to future horizontal development expenditures and investments in or vertical construction costs for properties that we may acquire or develop for our income-producing portfolio, along with debt service and general and administrative expenses. We budget our cash development costs on an annual basis. Budgeted amounts are subject to change due to delays or accelerations in construction or regulatory approvals, changes in inflation rates and other increases (or decreases) in costs. We may also modify our development plans or change the sequencing of our communities in response to changing economic conditions, consumer preferences and other factors, which could have a material impact on the timing and amount of our development costs. Budgeted amounts are expected to be funded through a combination of available cash, cash flows from our communities and reimbursements from public financing, including community facilities districts, tax increment financing and local, state and federal grants. Cash flows from our communities may occur in uneven patterns as cash is primarily generated by land sales and reimbursements, which can occur at various points over the life cycle of our communities.

We currently expect to have sufficient capital to fund the horizontal development of our communities in accordance with our development plan for several years. The level of capital expenditures in any given year may vary due to, among other things, the number of communities or neighborhoods under development and the number of planned deliveries, which may vary based on market conditions. We may seek to raise additional capital by accessing the debt or equity capital markets or with one or more revolving or term loan facilities or other public or private financing alternatives. These financings may not be available on attractive terms, or at all. We may also elect to utilize available cash on hand to retire our outstanding debt.

We are committed under various performance bonds and letters of credit (“LOCs”) to perform certain development activities and provide certain guarantees in the normal course of the entitlement and development process.

We had outstanding performance bonds of $320.0 million as of March 31, 2023 predominantly related to our Valencia community.

At March 31, 2023, the San Francisco Venture had outstanding guarantees benefiting a municipal agency for infrastructure and construction of certain park and open space obligations with aggregate maximum obligations of $198.3 million.

Outstanding LOCs totaled $1.0 million at both March 31, 2023 and December 31, 2022. At both March 31, 2023 and December 31, 2022, we had $1.0 million in restricted cash and certificates of deposit securing certain of our LOCs. Additionally, under our revolving credit facility, we are able to utilize undrawn capacity to support the issuance of LOCs. As of March 31, 2023, no capacity under the revolving credit facility was used to support LOCs.

We are a party to a tax receivable agreement (“TRA”) with current and former holders of Class A units of the operating company and the holders of Class A units of the San Francisco Venture. The TRA provides for payments by us to such investors or their successors in aggregate amounts equal to 85% of the cash savings, if any, in income tax that we realize as a result of certain tax attributes. We expect the TRA payments to be substantial. However, the actual amount and timing of any payments under the TRA will vary depending upon a number of factors, including the timing of exchanges of Class A units of the operating company, the price of our Class A common shares at the time of such exchanges, the extent to which such exchanges are taxable and our ability to use the potential tax benefits, which will depend on the amount and timing of our taxable income and the rate at which we pay income tax. As of March 31, 2023, there were no amounts currently payable under the TRA and based on current projections, we do not expect to make any payments for the next several years.

Summary of Cash Flows

The following table outlines the primary components of net cash (used in) provided by operating, investing and financing activities (in thousands):

	Three Months Ended March 31,
	2023		2022
Operating activities	$	(21,638)	$	(57,969)
Investing activities	68		484
Financing activities	(3,624)		(4,330)

Cash Flows from Operating Activities. Net cash used in operating activities decreased by $36.3 million for the three months ended March 31, 2023 compared to the three months ended March 31, 2022. Major components of operating cash used in both periods consist of our continued investment in horizontal development at our communities and selling, general, and administrative costs. Our horizontal development costs for the three months ended March 31, 2023 were partially offset by $17.7 million in public financing reimbursements for public infrastructure development costs we incurred in Valencia.

Cash Flows from Investing Activities. Net cash provided by investing activities decreased by $0.4 million for the three months ended March 31, 2023 compared to net cash provided by investing activities for the three months ended March 31, 2022.

For the three months ended March 31, 2023 and 2022, we received a distribution of $0.1 million and $0.5 million, respectively, from the Valencia Landbank Venture, which is reflected as a return of our investment in the statement of cash flows.

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Cash Flows from Financing Activities. Net cash used in financing activities was $3.6 million for the three months ended March 31, 2023 compared to $4.3 million net cash used in financing activities for the three months ended March 31, 2022.

We used $0.2 million and $2.7 million during the three months ended March 31, 2023 and 2022, respectively, to net settle share-based compensation awards with employees for tax withholding purposes. For the three months ended March 31, 2023 and 2022, in accordance with the operating company's Limited Partnership Agreement, we made noncontrolling interest tax distributions of $2.0 million and $0.4 million, respectively. We also made payments of $1.4 million and $1.2 million to reduce our related party reimbursement obligation during the three months ended March 31, 2023 and 2022, respectively.

Changes in Capital Structure

During the three months ended March 31, 2023, our ownership percentage in the operating company increased to 62.6%, primarily due to our issuance of shared-based compensation in the form of 0.2 million restricted Class A common shares, partially offset by our reacquisition of approximately 0.1 million restricted Class A common shares from employees for income tax withholding purposes upon vesting. The issuances and settlements resulted in the operating company issuing to us an equal number of Class A units of the operating company or retiring an equal number of Class A units of the operating company that we previously held.

The table below summarizes outstanding Class A units of the operating company and Class A units of the San Francisco Venture (redeemable on a one-for-one basis for Class A units of the operating company) held by us and held by noncontrolling interest members at March 31, 2023 and December 31, 2022.

	March 31, 2023	December 31, 2022
Class A units of the operating company:
Held by us	69,199,938	69,068,354
Held by noncontrolling interest members	41,363,271	41,363,271
	110,563,209	110,431,625
Class A units of the San Francisco Venture held by noncontrolling interest members	37,870,273	37,870,273
	148,433,482	148,301,898

At March 31, 2023, we had 79,233,544 Class B common shares outstanding that were held by the noncontrolling interest members of the operating company and the Class A unitholders of the San Francisco Venture. The Class B common shares will automatically convert to Class A common shares at a ratio of 0.0003 Class A common shares for each Class B common share. The conversions will occur when the holders of Class A units of the operating company, including Class A units that have been issued upon redemption of Class A units of the San Francisco Venture, are redeemed at our election for our Class A common shares or cash.

Critical Accounting Estimates

There have been no significant changes to our critical accounting estimates during the three months ended March 31, 2023 as compared to those disclosed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

ITEM 3.    Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss from adverse changes in market prices and interest rates. Our future earnings, cash flows and fair values relative to financial instruments are dependent upon prevailing market interest rates. Our primary market risk results from our indebtedness, which bears interest at fixed rates. Although we do not currently do so, we may in the future manage our market risk on floating rate debt by entering into swap arrangements to in effect fix the rate on all or a portion of the debt for varying periods up to maturity. This would, in turn, reduce the risks of variability of cash flows created by floating rate debt and mitigate the risk of increases in interest rates. Our objective when undertaking such arrangements would be to reduce our floating rate exposure, as we do not plan to enter into hedging arrangements for speculative purposes.

As of March 31, 2023, we had outstanding consolidated net indebtedness of $621.0 million, none of which bears interest based on floating interest rates.

We have not entered into any transactions using derivative financial instruments or derivative commodity instruments.

ITEM 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the supervision and participation of our Chief Executive Officer and our Interim Chief Financial Officer (the “Certifying Officers”), has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2023. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded,

31

processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms and that such information is accumulated and communicated to management, including our Certifying Officers and our Board of Directors, as appropriate to allow timely decisions regarding required disclosure. Based upon that evaluation, the Certifying Officers concluded that our disclosure controls and procedures were effective as of March 31, 2023.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting identified in management’s evaluation pursuant to Rules 13a-15(d) or 15d-15(d) of the Exchange Act during the period covered by this report on Form 10-Q that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1.    Legal Proceedings

For disclosures of legal proceedings, see Note 11 to our condensed consolidated financial statements included under Part I, Item 1 of this report, which is incorporated herein by reference.

ITEM 1A.     Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Part I, Item 1A, Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, which could materially affect our business, financial condition and results of operations. There have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. The risks described in our Annual Report on Form 10-K are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition and results of operations.

ITEM 2.     Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information about the Company’s purchases of equity securities that are registered pursuant to Section 12 of the Exchange Act for the three months ended March 31, 2023:

Period	Total number of shares purchased(1)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
January 1, 2023 to January 31, 2023	83,660	$	2.41	—	—
February 1, 2023 to February 28, 2023	—	—		—	—
March 1, 2023 to March 31, 2023	—	—		—	—
	83,660	$	2.41	—	—

(1) Represents shares repurchased by the Company pursuant to provisions in agreements with recipients of restricted shares granted under our equity compensation plan that allow the Company to repurchase, or the recipient to deliver to us, the number of shares with a fair value equal to the minimum statutory tax withholding due upon vesting of the restricted shares.

ITEM 3.     Defaults Upon Senior Securities

None

ITEM 4.    Mine Safety Disclosures

Not Applicable

ITEM 5.     Other Information

None

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ITEM 6.     Exhibits

Exhibit	Exhibit Description
31.1*	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*    Filed herewith

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FIVE POINT HOLDINGS, LLC
By:	/s/ Daniel Hedigan
	Daniel Hedigan
	Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ Leo Kij
	Leo Kij
	Interim Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

Date: April 21, 2023

35

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a14(a) AND 15d14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Daniel Hedigan, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Five Point Holdings, LLC;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a15(e) and 15d15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 21, 2023	/s/ Daniel Hedigan
	Daniel Hedigan
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a14(a) AND 15d14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Leo Kij, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Five Point Holdings, LLC;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a15(e) and 15d15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 21, 2023	/s/ Leo Kij
	Leo Kij
	Interim Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Five Point Holdings, LLC (the “Company”) on Form 10-Q for the period ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 21, 2023	/s/ Daniel Hedigan
		Daniel Hedigan
		Chief Executive Officer (Principal Executive Officer)

 A signed original of this written statement as required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Five Point Holdings, LLC (the “Company”) on Form 10-Q for the period ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	April 21, 2023	/s/ Leo Kij
		Leo Kij
		Interim Chief Financial Officer (Principal Financial and Accounting Officer)

 A signed original of this written statement as required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 14, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-38088
Entity Registrant Name	Five Point Holdings, LLC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-0599397
Entity Address, Address Line One	2000 FivePoint
Entity Address, Address Line Two	4th Floor
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92618
City Area Code	949
Local Phone Number	349-1000
Title of 12(b) Security	Class A common shares
Trading Symbol	FPH
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001574197
Current Fiscal Year End Date	--12-31
Common Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		69,199,938
Common Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		79,233,544

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
INVENTORIES	$ 2,260,595	$ 2,239,125
INVESTMENT IN UNCONSOLIDATED ENTITIES	332,564	331,594
PROPERTIES AND EQUIPMENT, NET	29,955	30,243
INTANGIBLE ASSET, NET—RELATED PARTY	39,610	40,257
CASH AND CASH EQUIVALENTS	106,577	131,771
RESTRICTED CASH AND CERTIFICATES OF DEPOSIT	992	992
RELATED PARTY ASSETS	97,114	97,126
OTHER ASSETS	11,075	14,676
TOTAL	2,878,482	2,885,784
LIABILITIES:
Notes payable, net	621,035	620,651
Accounts payable and other liabilities	100,304	94,426
Related party liabilities	90,628	93,086
Deferred income tax liability, net	11,506	11,506
Payable pursuant to tax receivable agreement	173,208	173,068
Total liabilities	996,681	992,737
COMMITMENTS AND CONTINGENT LIABILITIES (Note 11)
REDEEMABLE NONCONTROLLING INTEREST	25,000	25,000
CAPITAL:
Contributed capital	588,704	587,733
Retained earnings	28,850	33,386
Accumulated other comprehensive loss	(2,964)	(2,988)
Total members’ capital	614,590	618,131
Noncontrolling interests	1,242,211	1,249,916
Total capital	1,856,801	1,868,047
TOTAL	$ 2,878,482	$ 2,885,784

XML

Condensed Consolidated Balance Sheets (Parenthetical) - shares	Mar. 31, 2023	Dec. 31, 2022
Common Class A
Common shares issued (in shares)	69,199,938	69,068,354
Common shares outstanding (in shares)	69,199,938	69,068,354
Common Class B
Common shares issued (in shares)	79,233,544	79,233,544
Common shares outstanding (in shares)	79,233,544	79,233,544

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
REVENUES:
Revenues	$ 5,701	$ 4,886
COSTS AND EXPENSES:
Selling, general, and administrative	13,752	16,791
Restructuring	0	19,437
Total costs and expenses	17,290	40,751
OTHER INCOME (EXPENSE):
Interest income	836	21
Miscellaneous	(21)	112
Total other income	815	133
EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES	1,048	(1,032)
LOSS BEFORE INCOME TAX PROVISION	(9,726)	(36,764)
INCOME TAX PROVISION	(8)	(5)
NET LOSS	(9,734)	(36,769)
LESS NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	(5,198)	(19,639)
NET LOSS ATTRIBUTABLE TO THE COMPANY	$ (4,536)	$ (17,130)
Common Class A
NET LOSS ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE
Basic (in dollars per share)	$ (0.07)	$ (0.25)
Diluted (in dollar per share)	$ (0.07)	$ (0.25)
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING
Basic (in shares)	68,705,223	68,167,586
Diluted (in shares)	68,706,164	70,050,872
Common Class B
NET LOSS ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE
Basic (in dollars per share)	$ (0.00)	$ (0.00)
Diluted (in dollar per share)	$ (0.00)	$ (0.00)
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING
Basic (in shares)	79,233,544	79,233,544
Diluted (in shares)	79,233,544	79,233,544
Land sales
REVENUES:
Revenues	$ (25)	$ 557
COSTS AND EXPENSES:
Cost and expenses	0	0
Land sales—related party
REVENUES:
Revenues	624	1
Management services—related party
REVENUES:
Revenues	4,236	3,547
Management services
COSTS AND EXPENSES:
Cost and expenses	2,366	2,684
Operating properties
REVENUES:
Revenues	866	781
COSTS AND EXPENSES:
Cost and expenses	$ 1,172	$ 1,839

XML

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (9,734)	$ (36,769)
OTHER COMPREHENSIVE INCOME:
Reclassification of actuarial loss on defined benefit pension plan included in net loss	41	13
Other comprehensive income before taxes	41	13
INCOME TAX PROVISION RELATED TO OTHER COMPREHENSIVE INCOME	0	0
OTHER COMPREHENSIVE INCOME—Net of tax	41	13
COMPREHENSIVE LOSS	(9,693)	(36,756)
LESS COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	(5,183)	(19,634)
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE COMPANY	$ (4,510)	$ (17,122)

XML

Condensed Consolidated Statements of Capital - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 1,868,047	$ 1,900,378
Net loss	(9,734)	(36,769)
Share-based compensation expense	763	4,103
Reacquisition of share-based compensation awards for tax-withholding purposes	(202)	(2,736)
Other comprehensive income—net of tax	41	13
Tax distributions to noncontrolling interests	(1,974)	(435)
Adjustment to liability recognized under tax receivable agreement - net of tax	(140)	1,058
Adjustment of noncontrolling interest in the Operating Company	0	0
Ending balance	$ 1,856,801	$ 1,865,612
Common Stock | Class A Common Shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	69,068,354	70,107,552
Reacquisition of share-based compensation awards for tax-withholding purposes (in shares)	(83,660)	(417,716)
Issuance of share-based compensation awards, net of forfeitures (in shares)	215,244	(621,482)
Ending Balance (in shares)	69,199,938	69,068,354
Common Stock | Class B Common Shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	79,233,544	79,233,544
Ending Balance (in shares)	79,233,544	79,233,544
Contributed Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 587,733	$ 587,587
Share-based compensation expense	763	4,103
Reacquisition of share-based compensation awards for tax-withholding purposes	(202)	(2,736)
Adjustment to liability recognized under tax receivable agreement - net of tax	(140)	1,058
Adjustment of noncontrolling interest in the Operating Company	550	(4,406)
Ending balance	588,704	585,606
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	33,386	48,789
Net loss	(4,536)	(17,130)
Ending balance	28,850	31,659
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(2,988)	(1,952)
Other comprehensive income—net of tax	26	8
Adjustment of noncontrolling interest in the Operating Company	(2)	11
Ending balance	(2,964)	(1,933)
Total Members’ Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	618,131	634,424
Net loss	(4,536)	(17,130)
Share-based compensation expense	763	4,103
Reacquisition of share-based compensation awards for tax-withholding purposes	(202)	(2,736)
Other comprehensive income—net of tax	26	8
Adjustment to liability recognized under tax receivable agreement - net of tax	(140)	1,058
Adjustment of noncontrolling interest in the Operating Company	548	(4,395)
Ending balance	614,590	615,332
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,249,916	1,265,954
Net loss	(5,198)	(19,639)
Other comprehensive income—net of tax	15	5
Tax distributions to noncontrolling interests	(1,974)	(435)
Adjustment of noncontrolling interest in the Operating Company	(548)	4,395
Ending balance	$ 1,242,211	$ 1,250,280

XML

Condensed Consolidated Statements of Capital (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Other comprehensive income, tax	$ 0	$ 0
Tax related to adjustments to liability recognized under tax receivable agreement	$ 0	$ 0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (9,734)	$ (36,769)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in (earnings) loss from unconsolidated entities	(1,048)	1,032
Depreciation and amortization	2,018	1,592
Share-based compensation	763	4,103
Changes in operating assets and liabilities:
Inventories	(20,999)	(47,462)
Related party assets	(575)	2,845
Other assets	2,996	(389)
Accounts payable and other liabilities	5,951	6,282
Related party liabilities	(1,010)	10,797
Net cash used in operating activities	(21,638)	(57,969)
CASH FLOWS FROM INVESTING ACTIVITIES:
Return of investment	68	484
Net cash provided by investing activities	68	484
CASH FLOWS FROM FINANCING ACTIVITIES:
Related party reimbursement obligation	(1,448)	(1,159)
Reacquisition of share-based compensation awards for tax-withholding purposes	(202)	(2,736)
Tax distributions to noncontrolling interests	(1,974)	(435)
Net cash used in financing activities	(3,624)	(4,330)
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(25,194)	(61,815)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period	132,763	266,792
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period	$ 107,569	$ 204,977

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Business and Organization

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Organization

BUSINESS AND ORGANIZATION

Five Point Holdings, LLC, a Delaware limited liability company (the “Holding Company” and, together with its consolidated subsidiaries, the “Company”), is an owner and developer of mixed-use planned communities in California. The Holding Company owns all of its assets and conducts all of its operations through Five Point Operating Company, LP, a Delaware limited partnership (the “Operating Company”), and its subsidiaries.

The Company has two classes of shares outstanding: Class A common shares and Class B common shares. Holders of Class A common shares and holders of Class B common shares are entitled to one vote for each share held of record on all matters submitted to a vote of shareholders, and are both entitled to receive distributions at the same time. However, the distributions paid to holders of Class B common shares are in an amount per share equal to 0.0003 multiplied by the amount paid per Class A common share.

The Company presents noncontrolling interests on the Company’s condensed consolidated balance sheet and classifies such interests within capital but separate from the Company’s Class A and Class B members’ capital. Noncontrolling interests represent equity interests in the Company’s consolidated subsidiaries held by partners in the Operating Company, excluding the Holding Company, and members in The Shipyard Communities, LLC (the “San Francisco Venture”), excluding the Operating Company (see Note 5).

The Company has an entity structure in which the Company’s two largest equity owners, Lennar Corporation (“Lennar”) and Castlelake, LP (“Castlelake”), and the Company’s founder and Chairman Emeritus, Emile Haddad, separately hold, in addition to interests in the Company’s common shares, equity interests in either or both the Operating Company or the San Francisco Venture that can be exchanged for, at the Company’s option, either the Company’s Class A common shares or cash. The diagram below presents a simplified depiction of the Company’s organizational structure as of March 31, 2023:

(1) A wholly owned subsidiary of the Holding Company serves as the sole managing general partner of the Operating Company. As of March 31, 2023, the Company owned approximately 62.6% of the outstanding Class A Common Units of the Operating Company. After a one year holding period, a holder of Class A Common Units of the Operating Company can exchange the units for, at the Company’s option, either Class A common shares of the Holding Company, on a one-for-one basis, or cash equal to the fair market value of such shares. Until Class A Common Units of the Operating Company are exchanged or redeemed, the capital associated with Class A Common Units of the Operating Company not held by the Holding Company is presented within "noncontrolling interests" on the Company’s condensed consolidated balance sheet. Assuming the exchange of all outstanding Class A Common Units of the Operating Company and all outstanding Class A units of the San Francisco Venture (see (2)

below), that are not held by the Company, based on the closing price of the Company’s Class A common shares on April 14, 2023 ($2.32), the equity market capitalization of the Company was approximately $344.4 million.

(2) The Operating Company owns all of the outstanding Class B units of the San Francisco Venture, the entity developing the Candlestick and The San Francisco Shipyard communities. The Class A units of the San Francisco Venture, which the Operating Company does not own, are intended to be economically equivalent to Class A Common Units of the Operating Company. As the holder of all outstanding Class B units of the San Francisco Venture, the Operating Company is entitled to receive 99% of available cash from the San Francisco Venture after the holders of Class A units in the San Francisco Venture have received distributions equivalent to the distributions, if any, paid on Class A Common Units of the Operating Company. Class A units of the San Francisco Venture can be exchanged, on a one-for-one basis, for Class A Common Units of the Operating Company (See Note 5). Until exchanged or redeemed through the Operating Company, the capital associated with Class A units of the San Francisco Venture is presented within "noncontrolling interests" on the Company’s condensed consolidated balance sheet.

(3) Together, the Operating Company, Five Point Communities, LP, a Delaware limited partnership (“FP LP”), and Five Point Communities Management, Inc., a Delaware corporation (“FP Inc.” and together with FP LP, the “Management Company”) own 100% of Five Point Land, LLC, a Delaware limited liability company (“FPL”), the entity developing Valencia, a mixed-use planned community located in northern Los Angeles County, California. The Operating Company has a controlling interest in the Management Company.

(4) Interests in Heritage Fields LLC, a Delaware limited liability company (the “Great Park Venture”), are either “Percentage Interests” or “Legacy Interests.” Holders of the Legacy Interests were entitled to receive priority distributions up to an aggregate amount of $565.0 million, of which $498.7 million had been distributed as of April 14, 2023 (See Note 4). The Company owns a 37.5% Percentage Interest in the Great Park Venture and serves as its administrative member. However, management of the Great Park Venture is vested in the four voting members, who have a total of five votes. Major decisions generally require the approval of at least 75% of the votes of the voting members. The Company has two votes, and the other three voting members each have one vote, so the Company is unable to approve any major decision without the consent or approval of at least two of the other voting members. The Company does not include the Great Park Venture as a consolidated subsidiary, but rather as an equity method investee, in its condensed consolidated financial statements.

(5) The Company owns a 75% interest in Five Point Office Venture Holdings I, LLC, a Delaware limited liability company (the “Gateway Commercial Venture”). The Company manages the Gateway Commercial Venture, however, the manager’s authority is limited. Major decisions by the Gateway Commercial Venture generally require unanimous approval by an executive committee composed of two people designated by the Company and two people designated by another investor. Some decisions require approval by all of the members of the Gateway Commercial Venture. The Company does not include the Gateway Commercial Venture as a consolidated subsidiary, but rather as an equity method investee, in its condensed consolidated financial statements.

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Basis of Presentation

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

Principles of consolidation—The accompanying condensed consolidated financial statements include the accounts of the Holding Company and the accounts of all subsidiaries in which the Holding Company has a controlling interest and the consolidated accounts of variable interest entities (“VIEs”) in which the Holding Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.

Unaudited interim financial information—The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments (including normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the three months ended March 31, 2023 are not necessarily indicative of the operating results and cash flows that may be expected for the full year.

Use of estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates.

Miscellaneous other income—Miscellaneous other (loss) income consisted of the following (in thousands):

	Three Months Ended March 31,
	2023		2022
Net periodic pension (cost) benefit	$	(21)	$	112
Total miscellaneous other (loss) income	$	(21)	$	112

Recently adopted accounting pronouncements—There are no recent accounting pronouncements that have had or are expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures.

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Revenues

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenues

REVENUES

The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (in thousands):

	Three Months Ended March 31, 2023
	Valencia		San Francisco		Great Park(1)		Commercial(1)		Total
Land sales and land sales—related party	$	599	$	—	$	—	$	—	$	599
Management services—related party	—		—		4,129		107		4,236
Operating properties	358		—		—		—		358
	957		—		4,129		107		5,193
Operating properties leasing revenues	346		162		—		—		508
	$	1,303	$	162	$	4,129	$	107	$	5,701

	Three Months Ended March 31, 2022
	Valencia		San Francisco		Great Park(1)		Commercial(1)		Total
Land sales and land sales—related party	$	558	$	—	$	—	$	—	$	558
Management services—related party	—		—		3,444		103		3,547
Operating properties	356		—		—		—		356
	914		—		3,444		103		4,461
Operating properties leasing revenues	245		180		—		—		425
	$	1,159	$	180	$	3,444	$	103	$	4,886

(1) The tables above do not include revenues of the Great Park Venture and the Gateway Commercial Venture, which are included in the Company’s reporting segment totals (see Notes 4 and 13).

The opening and closing balances of the Company’s contract assets for the three months ended March 31, 2023 were $86.5 million ($79.9 million related party, see Note 8) and $86.0 million ($80.4 million related party, see Note 8), respectively. The opening and closing balances of the Company’s contract assets for the three months ended March 31, 2022 were $87.6 million ($79.1 million related party, see Note 8) and $87.5 million ($79.1 million related party, see Note 8), respectively. The decrease of $0.5 million for the three months ended March 31, 2023 between the opening and closing balances of the Company’s contract assets primarily resulted from the receipt of marketing fees from homebuilders from prior period land sales offset by additional incentive compensation revenue earned during the period from the Company's amended and restated development management agreement ("A&R DMA") with the Great Park Venture (see Note 8). The decrease of $0.1 million for the three months ended March 31, 2022 between the opening and closing balances of the Company’s contract assets primarily resulted from the receipt of marketing fees from homebuilders

The opening and closing balances of the Company’s other receivables from contracts with customers and contract liabilities for the three months ended March 31, 2023 and 2022 were insignificant.

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Investment In Unconsolidated Entities

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Entities

INVESTMENT IN UNCONSOLIDATED ENTITIES

Great Park Venture

The Great Park Venture has two classes of interests—“Percentage Interests” and “Legacy Interests.” The Operating Company owned 37.5% of the Great Park Venture’s Percentage Interests as of March 31, 2023. As of March 31, 2023, Legacy Interest holders were entitled to receive a maximum of $66.3 million in distributions to be paid pro-rata with Percentage Interest holders. Approximately 10% of future distributions will be paid to the Legacy Interest holders until such time as the remaining balance has been fully paid. The holders of the Percentage Interests will receive all other distributions.

The Great Park Venture is the owner of Great Park Neighborhoods, a mixed-use planned community located in Orange County, California. The Company, through the A&R DMA, as amended, manages the planning, development and sale of land at the Great Park Neighborhoods and supervises the day-to-day affairs of the Great Park Venture. The Great Park Venture is governed by an executive committee of representatives appointed by only the holders of Percentage Interests. The Company serves as the administrative member but does not control the actions of the executive committee. The Company accounts for its investment in the Great Park Venture using the equity method of accounting.

The carrying value of the Company’s investment in the Great Park Venture is higher than the Company’s underlying share of equity in the carrying value of net assets of the Great Park Venture, resulting in a basis difference. The Company’s earnings or losses from the equity method investment are adjusted by amortization and accretion of the basis differences as the assets (mainly inventory) and liabilities that gave rise to the basis difference are sold, settled or amortized.

During the three months ended March 31, 2023, the Great Park Venture recognized $5.5 million in land sale revenues to related parties of the Company and $3.1 million in land sale revenues to third parties.

During the three months ended March 31, 2022, the Great Park Venture recognized $1.5 million in land sale revenues to related parties of the Company and $0.3 million in land sale revenues to third parties.

The following table summarizes the statements of operations of the Great Park Venture for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Land sale and related party land sale revenues	$	8,600	$	1,819
Home sale revenues	—		17,161
Cost of land sales	—		—
Cost of home sales	—		(12,902)
Other costs and expenses	(5,857)		(8,909)
Net income (loss) of Great Park Venture	$	2,743	$	(2,831)
The Company’s share of net income (loss)	$	1,029	$	(1,062)
Basis difference accretion (amortization)	133		(239)
Equity in earnings (loss) from Great Park Venture	$	1,162	$	(1,301)

The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Inventories	$	613,239	$	605,893
Cash and cash equivalents	144,294		149,326
Receivable and other assets	40,196		43,955
Total assets	$	797,729	$	799,174
Accounts payable and other liabilities	$	151,900	$	156,085
Redeemable Legacy Interests	66,254		66,254
Capital (Percentage Interest)	579,575		576,835
Total liabilities and capital	$	797,729	$	799,174
The Company’s share of capital in Great Park Venture	$	217,342	$	216,313
Unamortized basis difference	72,846		72,713
The Company’s investment in the Great Park Venture	$	290,188	$	289,026

Gateway Commercial Venture

The Company owned a 75% interest in the Gateway Commercial Venture as of March 31, 2023. The Gateway Commercial Venture is governed by an executive committee in which the Company is entitled to appoint two individuals. One of the other members of the Gateway Commercial Venture is also entitled to appoint two individuals to the executive committee. The unanimous approval of the executive committee is required for certain matters, which limits the Company’s ability to control the Gateway Commercial Venture, however, the Company is able to exercise significant influence and therefore accounts for its investment in the Gateway Commercial Venture using the equity method. The Company is the manager of the Gateway Commercial Venture, with responsibility to manage and administer its day-to-day affairs and implement a business plan approved by the executive committee.

The Gateway Commercial Venture owns one commercial office building and approximately 50 acres of commercial land with additional development rights at a 73 acre office, medical, research and development campus located within the Great Park Neighborhoods (the “Five Point Gateway Campus”). The Five Point Gateway Campus consists of four buildings totaling approximately one million square feet. The Company and a subsidiary of Lennar lease portions of the building owned by the Gateway Commercial Venture, and during the three months ended March 31, 2023 and 2022, the Gateway Commercial Venture recognized $2.2 million and $1.9 million, respectively, in rental revenues from those leasing arrangements.

The following table summarizes the statements of operations of the Gateway Commercial Venture for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Rental revenues	$	2,154	$	1,938
Rental operating and other expenses	(910)		(535)
Depreciation and amortization	(994)		(984)
Interest expense	(533)		(307)
Net (loss) income of Gateway Commercial Venture	$	(283)	$	112
Equity in (loss) earnings from Gateway Commercial Venture	$	(212)	$	84

The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Real estate and related intangible assets, net	$	81,799	$	82,797
Cash	4,631		4,244
Other assets	4,533		4,588
Total assets	$	90,963	$	91,629
Notes payable, net	$	29,418	$	29,418
Other liabilities	7,568		7,951
Members’ capital	53,977		54,260
Total liabilities and capital	$	90,963	$	91,629
The Company’s investment in the Gateway Commercial Venture	$	40,483	$	40,695

The debt of the Gateway Commercial Venture is non-recourse to the Company other than in the case of customary “bad act” exceptions or bankruptcy or insolvency events.

Valencia Landbank Venture

As of March 31, 2023, the Company owned a 10% interest in the Valencia Landbank Venture, an entity organized in December 2020 for the purpose of taking assignment from homebuilders of purchase and sale agreements for the purchase of residential lots within the Valencia community. The Valencia Landbank Venture concurrently enters into option and development agreements with homebuilders pursuant to which the homebuilders retain the option to purchase the land to construct and sell homes. The Company does not have a controlling financial interest in the Valencia Landbank Venture, however, the Company has the ability to significantly influence the Valencia Landbank Venture’s operating and financial policies, and most major decisions require the Company’s approval in addition to the approval of the Valencia Landbank Venture’s other unaffiliated member, and therefore the Company accounts for its investment in the Valencia Landbank Venture using the equity method. At March 31, 2023 and December 31, 2022, the Company’s investment in the Valencia Landbank Venture was $1.9 million and $1.9 million, respectively, and the Company recognized $0.1 million and $0.2 million in equity in earnings for the three months ended March 31, 2023 and 2022, respectively.

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Noncontrolling Interests

3 Months Ended

Mar. 31, 2023

Noncontrolling Interest [Abstract]

Noncontrolling Interests

NONCONTROLLING INTERESTS

The Operating Company

The Holding Company’s wholly owned subsidiary is the managing general partner of the Operating Company, and at March 31, 2023, the Holding Company and its wholly owned subsidiary owned approximately 62.6% of the outstanding Class A Common Units and 100% of the outstanding Class B Common Units of the Operating Company. The Holding Company consolidates the financial results of the Operating Company and its subsidiaries and records a noncontrolling interest for the remaining 37.4% of the outstanding Class A Common Units of the Operating Company that are owned separately by affiliates of Lennar, affiliates of Castlelake and an entity controlled by Emile Haddad, the Company’s Chairman Emeritus of the Board of Directors (the “Management Partner”).

After a 12 month holding period, holders of Class A Common Units of the Operating Company may exchange their units for, at the Company’s option, either (i) Class A common shares on a one-for-one basis (subject to adjustment in the event of share splits, distributions of shares, warrants or share rights, specified extraordinary distributions and similar events), or (ii) cash in an amount equal to the market value of such shares at the time of exchange. In either situation, an equal number of that holder’s Class B common shares will automatically convert into Class A common shares, at a ratio of 0.0003 Class A common shares for each Class B common share. This exchange right is currently exercisable by all holders of outstanding Class A Common Units of the Operating Company.

With each exchange of Class A Common Units of the Operating Company for Class A common shares, the Holding Company’s percentage ownership interest in the Operating Company and its share of the Operating Company’s cash distributions and profits and losses will increase. Additionally, other issuances of common shares of the Holding Company or common units of the Operating Company result in changes to the noncontrolling interest percentage. Such equity transactions result in an adjustment between members’ capital and the noncontrolling interest in the Company’s condensed consolidated balance sheet and statement of capital to account for the changes in the noncontrolling interest ownership percentage as well as any change in total net assets of the Company.

During the three months ended March 31, 2023 and 2022, the Holding Company’s ownership interest in the Operating Company changed as a result of net equity transactions related to the Company’s share-based compensation plan.

The terms of the Operating Company's Limited Partnership Agreement (“LPA”) provide for the payment of tax distributions to the Operating Company's partners in an amount equal to the estimated income tax liabilities resulting from taxable income or gain allocated to those parties. The tax distribution provisions in the LPA were included in the Operating Company's governing documents adopted prior to the Company’s initial public offering and were designed to provide funds necessary to pay tax liabilities for income that might be allocated, but not paid, to the partners.

Tax distributions to the partners of the Operating Company for the three months ended March 31, 2023 and 2022, were as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Management Partner	$	1,974	$	435
Other partners (excluding the Holding Company)	—		—
Total tax distributions	$	1,974	$	435

Generally, tax distributions are treated as advance distributions under the LPA and are taken into account when determining the amounts otherwise distributable under the LPA.

The San Francisco Venture

The San Francisco Venture has three classes of units—Class A, Class B and Class C units. The Operating Company owns all of the outstanding Class B units of the San Francisco Venture. All of the outstanding Class A units are owned by Lennar and Castlelake. The Class A units of the San Francisco Venture are intended to be substantially economically equivalent to the Class A Common Units of the Operating Company. The Class A units of the San Francisco Venture represent noncontrolling interests to the Operating Company.

Holders of Class A units of the San Francisco Venture can redeem their units at any time and receive Class A Common Units of the Operating Company on a one-for-one basis (subject to adjustment in the event of share splits, distributions of shares, warrants or share rights, specified extraordinary distributions and similar events). If a holder requests a redemption of Class A units of the San Francisco Venture that would result in the Holding Company’s ownership of the Operating Company falling below 50.1%, the Holding Company has the option of satisfying the redemption with Class A common shares instead. The Company also has the option, at any time, to acquire outstanding Class A units of the San Francisco Venture in exchange for Class A Common Units of the Operating Company. The 12 month holding period for any Class A Common Units of the Operating Company issued in exchange for

Class A units of the San Francisco Venture is calculated by including the period that such Class A units of the San Francisco Venture were owned. This exchange right is currently exercisable by all holders of outstanding Class A units of the San Francisco Venture.

Redeemable Noncontrolling Interest

In 2019, the San Francisco Venture issued 25.0 million Class C units to an affiliate of Lennar in exchange for a contribution of $25.0 million to the San Francisco Venture. Provided that Lennar completes the construction of a certain number of new homes in Candlestick as contemplated under purchase and sale agreements with the Company, the San Francisco Venture is required to redeem the Class C units if and when the Company receives reimbursements from the Mello-Roos communities facilities district formed for the development, in an aggregate amount equal to 50% of any reimbursements received up to a maximum amount of $25.0 million. The San Francisco Venture also maintains the ability to redeem the then outstanding balance of Class C units for cash at any time. Upon a liquidation of the San Francisco Venture, the holders of Class C Units are entitled to a liquidation preference. The maximum amount payable by the San Francisco Venture pursuant to redemptions or liquidation of the Class C units is $25.0 million. The holders of Class C units are not entitled to receive any other forms of distributions and are not entitled to any voting rights. In connection with the issuance of the Class C units, the San Francisco Venture agreed to spend $25.0 million on the development of infrastructure and/or parking facilities at the Company’s Candlestick development. At March 31, 2023 and December 31, 2022, $25.0 million of Class C units were outstanding and included in redeemable noncontrolling interest on the condensed consolidated balance sheets.

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Consolidated Variable Interest Entity

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Variable Interest Entity

CONSOLIDATED VARIABLE INTEREST ENTITY

The Holding Company conducts all of its operations through the Operating Company, a consolidated VIE, and as a result, substantially all of the Company’s assets and liabilities represent the assets and liabilities of the Operating Company, other than items attributed to income taxes and the payable pursuant to a tax receivable agreement (“TRA”). The Operating Company has investments in and consolidates the assets and liabilities of the San Francisco Venture, FP LP and FPL, all of which have also been determined to be VIEs.

The San Francisco Venture is a VIE as the other members of the venture, individually or as a group, are not able to exercise kick-out rights or substantive participating rights. The Company applied the variable interest model and determined that it is the primary beneficiary of the San Francisco Venture and, accordingly, the San Francisco Venture is consolidated in the Company’s results. In making that determination, the Company evaluated that the Operating Company has unilateral and unconditional power to make decisions in regards to the activities that significantly impact the economics of the VIE, which are the development of properties, marketing and sale of properties, acquisition of land and other real estate properties and obtaining land ownership or ground lease for the underlying properties to be developed. The Company is determined to have more-than-insignificant economic benefit from the San Francisco Venture because, excluding Class C units, the Operating Company can prevent or cause the San Francisco Venture from making distributions on its units, and the Operating Company would receive 99% of any such distributions made (assuming no distributions had been paid on the Class A Common Units of the Operating Company). In addition, the San Francisco Venture is only allowed to make a capital call on the Operating Company and not any other interest holders, which could be a significant financial risk to the Operating Company.

As of March 31, 2023, the San Francisco Venture had total combined assets of $1.33 billion, primarily comprised of $1.32 billion of inventories and $0.9 million in related party assets, and total combined liabilities of $68.3 million, including $61.5 million in related party liabilities.

As of December 31, 2022, the San Francisco Venture had total combined assets of $1.31 billion, primarily comprised of $1.31 billion of inventories and $0.8 million in related party assets, and total combined liabilities of $67.3 million, including $63.0 million in related party liabilities.

Those assets are owned by, and those liabilities are obligations of, the San Francisco Venture, not the Company. The San Francisco Venture’s operating subsidiaries are not guarantors of the Company’s obligations, and the assets held by the San Francisco Venture may only be used as collateral for the San Francisco Venture’s obligations. The creditors of the San Francisco Venture do not have recourse to the assets of the Operating Company, as the VIE’s primary beneficiary, or of the Holding Company.

The Company and the other members do not generally have an obligation to make capital contributions to the San Francisco Venture. In addition, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the San Francisco Venture. The Company does not guarantee any debt of the San Francisco Venture. However, the Operating Company has guaranteed the performance of payment by the San Francisco Venture in accordance with the redemption terms of the Class C units of the San Francisco Venture (see Note 5).

FP LP and FPL are VIEs because the other partners or members have disproportionately fewer voting rights, and substantially all of the activities of the entities are conducted on behalf of the other partners or members and their related parties. The Operating Company, or a wholly owned subsidiary of the Operating Company, is the primary beneficiary of FP LP and FPL.

As of March 31, 2023, FP LP and FPL had combined assets of $1.1 billion, primarily comprised of $936.7 million of inventories, $39.6 million of intangibles and $80.4 million in related party assets, and total combined liabilities of $76.1 million, including $68.6 million in accounts payable and other liabilities and $7.5 million in related party liabilities.

As of December 31, 2022, FP LP and FPL had combined assets of $1.1 billion, primarily comprised of $927.9 million of inventories, $40.3 million of intangibles and $79.9 million in related party assets, and total combined liabilities of $77.2 million, including $70.5 million in accounts payable and other liabilities and $6.7 million in related party liabilities.

The Company evaluates its primary beneficiary designation on an ongoing basis and assesses the appropriateness of the VIE’s status when events have occurred that would trigger such an analysis. During the three months ended March 31, 2023 and 2022, there were no VIEs that were deconsolidated.

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Intangible Asset, Net - Related Party

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Asset, Net - Related Party

INTANGIBLE ASSET, NET—RELATED PARTY

The intangible asset relates to the contract value of the incentive compensation provisions of the A&R DMA with the Great Park Venture. The intangible asset will be amortized over the expected contract period based on the pattern in which the economic benefits are expected to be received.

The carrying amount and accumulated amortization of the intangible asset as of March 31, 2023 and December 31, 2022 were as follows (in thousands):

	March 31, 2023		December 31, 2022
Gross carrying amount	$	129,705	$	129,705
Accumulated amortization	(90,095)		(89,448)
Net book value	$	39,610	$	40,257

Intangible asset amortization expense, as a result of revenue recognition attributable to incentive compensation, was $0.6 million for the three months ended March 31, 2023. No amortization expense was recognized during the three months ended March 31, 2022 as no incentive compensation revenue was recognized during the period. Amortization expense is included in the cost of management services in the accompanying condensed consolidated statements of operations and is included in the Great Park segment.

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Related Party Transactions

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

Related party assets and liabilities included in the Company’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Related Party Assets:
Contract assets (see Note 3)	$	80,414	$	79,863
Operating lease right-of-use asset (corporate office lease at Five Point Gateway Campus)	15,838		16,425
Other	862		838
	$	97,114	$	97,126
Related Party Liabilities:
Reimbursement obligation	$	61,542	$	62,990
Payable to holders of Management Company’s Class B interests	6,700		6,700
Operating lease liability (corporate office lease at Five Point Gateway Campus)	12,167		12,535
Accrued advisory fees	9,075		10,525
Other	1,144		336
	$	90,628	$	93,086

Development Management Agreement with the Great Park Venture (Incentive Compensation Contract Asset)

In 2010, the Great Park Venture, the Company’s equity method investee, engaged the Management Company under a development management agreement to provide management services to the Great Park Venture. The compensation structure in place consists of a base fee and incentive compensation. Incentive compensation is 9% of distributions available to be made by the Great Park Venture to its Legacy and Percentage Interest Holders. In December 2022, the Company and the Great Park Venture entered into an amendment to the A&R DMA to extend the term to December 31, 2024 (the "First Renewal Term"). If the A&R DMA is not extended by mutual agreement of the parties beyond December 31, 2024 and the Company is no longer providing management services subsequent to December 31, 2024, the Company will be entitled to 6.75% of distributions paid thereafter.

At March 31, 2023 and December 31, 2022, included in contract assets in the table above is $78.5 million and $77.4 million, respectively, attributed to Incentive Compensation revenue recognized but not yet due (see Note 3). Management fee revenues under the A&R DMA are included in management services—related party in the accompanying condensed consolidated statements of operations and are included in the Great Park segment. Management fee revenues under the A&R DMA were $4.1 million and $3.4 million for the three months ended March 31, 2023 and 2022, respectively.

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Notes Payable, Net

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Notes Payable, Net

NOTES PAYABLE, NET

At March 31, 2023 and December 31, 2022, notes payable consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
7.875% Senior Notes due 2025	$	625,000	$	625,000
Unamortized debt issuance costs and discount	(3,965)		(4,349)
	$	621,035	$	620,651

Revolving Credit Facility

The Operating Company has a $125.0 million unsecured revolving credit facility with a maturity date in April 2024, with one option to extend the maturity date by an additional year, subject to the satisfaction of certain conditions including the approval of the administrative agent and lenders. As of March 31, 2023, no borrowings or letters of credit were outstanding on the Operating Company’s revolving credit facility.

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Tax Receivable Agreement	3 Months Ended
	Mar. 31, 2023
Other Liabilities Disclosure [Abstract]
Tax Receivable Agreement	TAX RECEIVABLE AGREEMENT The Company is a party to a TRA with all of the holders of Class A Common Units of the Operating Company, all the holders of Class A units of the San Francisco Venture, and prior holders of Class A Common Units of the Operating Company and prior holders of Class A units of the San Francisco Venture that have exchanged their holdings for Class A common shares (as parties to the TRA, the “TRA Parties”). At March 31, 2023 and December 31, 2022, the Company’s condensed consolidated balance sheets included a liability of $173.2 million and $173.1 million, respectively, for payments expected to be made under certain components of the TRA which the Company deems to be probable and estimable. No TRA payments were made during the three months ended March 31, 2023 or 2022.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

The Company is subject to the usual obligations associated with entering into contracts for the purchase, development and sale of real estate, which the Company does in the routine conduct of its business. The operations of the Company are conducted through the Operating Company and its subsidiaries, and in some cases, the Holding Company will guarantee the payment by or performance of the Operating Company or its subsidiaries. The Company has operating leases for its corporate office and other facilities and the Holding Company is a guarantor to some of these lease agreements. Operating lease right-of-use assets are included in other assets or related party assets, and operating lease liabilities are included in accounts payable and other liabilities or related party liabilities on the condensed consolidated balance sheets and were as follows as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Operating lease right-of-use assets ($15,838 and $16,425 related party, respectively)	$	17,156	$	19,067
Operating lease liabilities ($12,167 and $12,535 related party, respectively)	$	13,783	$	15,705

In addition to operating lease payment guarantees, the Holding Company had other contractual payment guarantees as of March 31, 2023 totaling $10.2 million.

Performance and Completion Bonding Agreements

In the ordinary course of business and as a part of the entitlement and development process, the Company is required to provide performance bonds to ensure completion of certain development obligations. The Company had outstanding performance bonds of $320.0 million and $315.0 million as of March 31, 2023 and December 31, 2022, respectively.

Candlestick and The San Francisco Shipyard Disposition and Development Agreement

The San Francisco Venture is a party to a disposition and development agreement with the Successor to the Redevelopment Agency of the City and County of San Francisco (the “San Francisco Agency”) in which the San Francisco Agency has agreed to convey portions of Candlestick and The San Francisco Shipyard to the San Francisco Venture for development. The San Francisco Venture has agreed to reimburse the San Francisco Agency for reasonable costs and expenses actually incurred and paid by the San Francisco Agency in performing its obligations under the disposition and development agreement. The San Francisco Agency can also earn a return of certain profits generated from the development and sale of Candlestick and The San Francisco Shipyard if certain thresholds are met.

At each of March 31, 2023 and December 31, 2022, the San Francisco Venture had outstanding guarantees benefiting the San Francisco Agency for infrastructure and construction of certain park and open space obligations with aggregate maximum obligations of $198.3 million.

Letters of Credit

At each of March 31, 2023 and December 31, 2022, the Company had outstanding letters of credit totaling $1.0 million. These letters of credit were issued to secure various development and financial obligations. At each of March 31, 2023 and December 31, 2022, the Company had restricted cash and certificates of deposit of $1.0 million pledged as collateral under certain of the letters of credit agreements.

Legal Proceedings

Hunters Point Litigation

In May 2018, residents of the Bayview Hunters Point neighborhood in San Francisco filed a putative class action in San Francisco Superior Court naming Tetra Tech, Inc. and Tetra Tech EC, Inc., an independent contractor hired by the U.S. Navy to conduct testing and remediation of toxic radiological waste at The San Francisco Shipyard (“Tetra Tech”), Lennar and the Company as defendants (the “Bayview Action”). The plaintiffs allege that, among other things, Tetra Tech fraudulently misrepresented its test

results and remediation efforts. The plaintiffs are seeking damages against Tetra Tech and the Company and have requested an injunction to prevent the Company and Lennar from undertaking any development activities at The San Francisco Shipyard. Given the preliminary nature of the claims, the Company cannot predict the outcome of the Bayview Action. The Company believes that it has meritorious defenses to the allegations in the Bayview Action and may have insurance and indemnification rights against third parties with respect to the claims.

Other

Other than the actions outlined above, the Company is also a party to various other claims, legal actions, and complaints arising in the ordinary course of business, the disposition of which, in the Company’s opinion, will not have a material adverse effect on the Company’s condensed consolidated financial statements.

As a significant land owner and developer of unimproved land it is possible that environmental contamination conditions could exist that would require the Company to take corrective action. In the opinion of the Company, such corrective actions, if any, would not have a material adverse effect on the Company’s condensed consolidated financial statements.

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Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2023

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information for the three months ended March 31, 2023 and 2022 were as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, all of which was capitalized to inventories	$	706	$	776
Noncash lease expense	$	1,116	$	1,301
NONCASH INVESTING AND FINANCING ACTIVITIES:
Adjustment to operating lease right-of-use assets from lease modification	$	(773)	$	—
Adjustment to liability recognized under TRA	$	140	$	(1,058)

Noncash lease expense is included within the depreciation and amortization adjustment to net loss on the Company’s condensed consolidated statements of cash flows.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022 (in thousands):

	March 31, 2023		March 31, 2022
Cash and cash equivalents	$	106,577	$	203,647
Restricted cash and certificates of deposit	992		1,330
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$	107,569	$	204,977

Amounts included in restricted cash and certificates of deposit represent amounts held as collateral on open letters of credit related to development obligations or because of other contractual obligations of the Company that require the restriction.

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Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

SEGMENT REPORTING

The Company’s reportable segments consist of:

• Valencia—includes the community of Valencia being developed in northern Los Angeles County, California. The Valencia segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers. The Company’s investment in the Valencia Landbank Venture is also reported in the Valencia segment.

• San Francisco—includes the Candlestick and The San Francisco Shipyard communities located on bayfront property in the City of San Francisco, California. The San Francisco segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers.

• Great Park—includes the Great Park Neighborhoods being developed adjacent to and around the Orange County Great Park, a metropolitan park under construction in Orange County, California. This segment also includes management services provided by the Management Company to the Great Park Venture, the owner of the Great Park Neighborhoods. As of March 31, 2023, the Company had a 37.5% Percentage Interest in the Great Park Venture and accounted for the investment

under the equity method. The reported segment information for the Great Park segment includes the results of 100% of the Great Park Venture at the historical basis of the venture, which did not apply push down accounting at acquisition date. The Great Park segment derives revenues at the Great Park Neighborhoods from sales of residential and commercial land sites to homebuilders, commercial developers and commercial buyers, sales of homes constructed and marketed under a fee build arrangement, and management services provided by the Company to the Great Park Venture.

• Commercial—includes the operations of the Gateway Commercial Venture, which owns an approximately 189,000 square foot office building at the Five Point Gateway Campus. The Five Point Gateway Campus is an office, medical and research and development campus located within the Great Park Neighborhoods and consists of four buildings and surrounding land. The Company and a subsidiary of Lennar lease portions of the building owned by the Gateway Commercial Venture. The Gateway Commercial Venture also owns approximately 50 acres of the surrounding commercial land with additional development rights at the campus. This segment also includes property management services provided by the Management Company to the Gateway Commercial Venture. As of March 31, 2023, the Company had a 75% interest in the Gateway Commercial Venture and accounted for the investment under the equity method. The reported segment information for the Commercial segment includes the results of 100% of the Gateway Commercial Venture at the historical basis of the venture.

     Segment operating results and reconciliations to the Company’s consolidated balances are as follows (in thousands):

	Revenues				Profit (Loss)
	Three Months Ended March 31,
	2023		2022		2023		2022
Valencia	$	1,303	$	1,159	$	(2,439)	$	(4,827)
San Francisco	162		180		(1,030)		(669)
Great Park	12,729		22,424		4,506		(2,071)
Commercial	2,261		2,041		(176)		215
Total reportable segments	16,455		25,804		861		(7,352)
Reconciling items:
Removal of results of unconsolidated entities—
Great Park Venture (1)	(8,600)		(18,980)		(2,743)		2,831
Gateway Commercial Venture (1)	(2,154)		(1,938)		283		(112)
Add equity in earnings (losses) from unconsolidated entities—
Great Park Venture	—		—		1,162		(1,301)
Gateway Commercial Venture	—		—		(212)		84
Corporate and unallocated (2)	—		—		(9,085)		(30,919)
Total consolidated balances	$	5,701	$	4,886	$	(9,734)	$	(36,769)

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in the Company’s consolidated results and balances as the Company accounts for its investment in each venture using the equity method of accounting.

(2) Corporate and unallocated activity is primarily comprised of corporate general and administrative expenses and restructuring expenses.

Segment assets and reconciliations to the Company’s consolidated balances are as follows (in thousands):

	March 31, 2023		December 31, 2022
Valencia	$	978,669	$	972,028
San Francisco	1,326,098		1,314,308
Great Park	915,945		916,909
Commercial	90,963		91,629
Total reportable segments	3,311,675		3,294,874
Reconciling items:
Removal of unconsolidated balances of Great Park Venture (1)	(797,729)		(799,174)
Removal of unconsolidated balances of Gateway Commercial Venture (1)	(90,963)		(91,629)
Other eliminations (2)	(52)		(174)
Add investment balance in Great Park Venture	290,188		289,026
Add investment balance in Gateway Commercial Venture	40,483		40,695
Corporate and unallocated (3)	124,880		152,166
Total consolidated balances	$	2,878,482	$	2,885,784

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture balances, which are included in the Great Park segment and Commercial segment balances at 100% of each venture’s historical basis, respectively, but are not included in the Company’s consolidated balances as the Company accounts for its investment in each venture using the equity method of accounting.

(2) Represents intersegment balances that eliminate in consolidation.

(3) Corporate and unallocated assets consist of cash and cash equivalents, receivables, right-of-use assets and prepaid expenses.

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Share-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

The following table summarizes share-based equity compensation activity for the three months ended March 31, 2023:

	Share-Based Awards (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested at January 1, 2023	2,166	$	3.77
Granted	3,040	$	1.81
Forfeited	—	$	—
Vested	(636)	$	6.33
Nonvested at March 31, 2023	4,570	$	2.11

Share-based compensation expense was $0.8 million and $4.1 million for the three months ended March 31, 2023 and 2022, respectively. All share-based compensation for the three months ended March 31, 2023 is included in selling, general, and administrative expenses on the accompanying condensed consolidated statements of operations. In February 2022, the Company accelerated the expense attributed to the outstanding restricted share awards of two former officers of the Company resulting from a modification of the required service condition of the awards. As a result, for the three months ended March 31, 2022, share-based compensation expense of $3.0 million is included in restructuring expense and $1.1 million is included in selling, general, and administrative expenses on the accompanying condensed consolidated statement of operations.

The estimated fair value at vesting of share-based awards that vested during the three months ended March 31, 2023 was $1.5 million. In January 2023 and 2022, the Company reacquired vested restricted Class A common shares for $0.2 million and $2.7 million, respectively, for the purpose of settling tax withholding obligations of employees. The reacquisition cost is based on the fair value of the Company’s Class A common shares on the date the tax obligation is incurred.

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS Retirement Plan—The Newhall Land and Farming Company Retirement Plan (the “Retirement Plan”) is a defined benefit plan that is funded by the Company and qualified under the Employee Retirement Income Security Act. The Retirement Plan was frozen in 2004.The components of net periodic cost (benefit) for the three months ended March 31, 2023 and 2022, are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Net periodic cost (benefit):
Interest cost	$	202	$	136
Expected return on plan assets	(222)		(261)
Amortization of net actuarial loss	41		13
Net periodic cost (benefit)	$	21	$	(112)

Net periodic cost (benefit) does not include a service cost component as a result of the Retirement Plan being frozen. All other components of net periodic benefit are included in other income on the condensed consolidated statements of operations.

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Income Taxes

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Upon formation, the Holding Company elected to be treated as a corporation for U.S. federal, state, and local tax purposes. All operations are carried on through the Holding Company’s subsidiaries, the majority of which are pass-through entities that are generally not subject to federal or state income taxation, as all of the taxable income, gains, losses, deductions, and credits are passed through to the partners. The Holding Company is responsible for income taxes on its allocable share of the Operating Company’s income or gain.

Other than a small income tax provision attributed to one of the Company’s consolidated subsidiary corporations, during the three months ended March 31, 2023 and 2022, the Company recorded no provision or benefit for income taxes (after application of an increase in the Company’s valuation allowance) on pre-tax loss of $9.7 million and $36.8 million, respectively. The effective tax rates for the three months ended March 31, 2023 and 2022, differ from the 21% federal statutory rate and applicable state statutory rates primarily due to the Company’s valuation allowance on its book losses, disallowance of executive compensation expenses not deductible for tax, and to the pre-tax portion of income and losses that are passed through to the other partners of the Operating Company and the San Francisco Venture.

Largely due to a history of book losses, the Company continues to record a valuation allowance against its federal and state net deferred tax assets.

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Financial Instruments and Fair Value Measurements and Disclosures

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements and Disclosures

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS AND DISCLOSURES

ASC Topic 820, Fair Value Measurement, emphasizes that a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. The following hierarchy classifies the inputs used to determine fair value into three levels:

Level 1—Quoted prices for identical instruments in active markets

Level 2—Quoted prices for similar instruments in active markets or inputs, other than quoted prices, that are observable for the instrument either directly or indirectly

Level 3—Significant inputs to the valuation model are unobservable

At each reporting period, the Company evaluates the fair value of its financial instruments compared to carrying values. Other than the Company’s notes payable, net, the carrying amount of the Company’s financial instruments, which includes cash and cash equivalents, restricted cash and certificates of deposit, certain related party assets and liabilities, and accounts payable and other liabilities, approximated the Company’s estimates of fair value at both March 31, 2023 and December 31, 2022.

The fair value of the Company’s notes payable, net, are estimated based on quoted market prices or discounting the expected cash flows based on rates available to the Company (level 2). At March 31, 2023, the estimated fair value of notes payable, net was $563.8 million compared to a carrying value of $621.0 million. At December 31, 2022, the estimated fair value of notes payable, net was $525.5 million compared to a carrying value of $620.7 million. During the three months ended March 31, 2023 and 2022, the Company had no assets that were measured at fair value on a nonrecurring basis.

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Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The Company uses the two-class method in its computation of earnings per share. The Company’s Class A common shares and Class B common shares are entitled to receive distributions at different rates, with each Class B common share receiving 0.03% of the distributions paid on each Class A common share. Under the two-class method, the Company’s net income available to common shareholders is allocated between the two classes of common shares on a fully-distributed basis and reflects residual net income after amounts attributed to noncontrolling interests. In the event of a net loss, the Company determined that both classes share in the Company’s losses, and they share in the losses using the same mechanism as the distributions. The Company also has restricted share awards and performance restricted share awards (see Note 14) that have a right to non-forfeitable dividends while unvested and are contemplated as participating when the Company is in a net income position. These awards participate in distributions on a basis equivalent to other Class A common shares but do not participate in losses.

No distributions on common shares were declared for the three months ended March 31, 2023 or 2022.

Diluted income (loss) per share calculations for both Class A common shares and Class B common shares contemplate adjustments to the numerator and the denominator under the if-converted method for the convertible Class B common shares, the exchangeable Class A units of the San Francisco Venture and the exchangeable Class A Common Units of the Operating Company. The Company uses the treasury stock method or the two-class method when evaluating dilution for RSUs, restricted shares, and performance restricted units and shares. The more dilutive of the two methods is included in the calculation for diluted income (loss) per share.

The following table summarizes the basic and diluted loss per share calculations for the three months ended March 31, 2023 and 2022 (in thousands, except shares and per share amounts):    

	Three Months Ended March 31,
	2023		2022
Numerator:
Net loss attributable to the Company	$	(4,536)	$	(17,130)
Adjustments to net loss attributable to the Company	13		122
Net loss attributable to common shareholders	$	(4,523)	$	(17,008)
Numerator—basic common shares:
Numerator for basic net loss available to Class A common shareholders	$	(4,522)	$	(17,002)
Numerator for basic net loss available to Class B common shareholders	$	(1)	$	(6)
Numerator—diluted common shares:
Net loss attributable to common shareholders	$	(4,523)	$	(17,008)
Reallocation of loss upon assumed exchange of dilutive potential securities	(85)		(477)
Allocation of diluted net loss among common shareholders	$	(4,608)	$	(17,485)
Numerator for diluted net loss available to Class A common shareholders	$	(4,607)	$	(17,479)
Numerator for diluted net loss available to Class B common shareholders	$	(1)	$	(6)
Denominator:
Basic weighted average Class A common shares outstanding	68,705,223		68,167,586
Diluted weighted average Class A common shares outstanding	68,706,164		70,050,872
Basic and diluted weighted average Class B common shares outstanding	79,233,544		79,233,544
Basic loss per share:
Class A common shares	$	(0.07)	$	(0.25)
Class B common shares	$	(0.00)	$	(0.00)
Diluted loss per share:
Class A common shares	$	(0.07)	$	(0.25)
Class B common shares	$	(0.00)	$	(0.00)
Anti-dilutive potential RSUs	847,532		—
Anti-dilutive potential Performance RSUs	3,123,408		—
Anti-dilutive potential Restricted Shares (weighted average)	346,030		1,037,064
Anti-dilutive potential Performance Restricted Shares (weighted average)	—		100,292
Anti-dilutive potential Class A common shares from exchanges (weighted average)	76,120,180		76,120,180

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Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Accumulated Other Comprehensive Loss	ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss attributable to the Company consists of unamortized defined benefit pension plan net actuarial losses that totaled $3.0 million and $3.0 million at March 31, 2023 and December 31, 2022, respectively, net of tax benefits of $0.8 million and $0.8 million, respectively. At both March 31, 2023 and December 31, 2022, the Company held a full valuation allowance related to the accumulated tax benefits. Accumulated other comprehensive loss of $1.8 million and $1.9 million is included in noncontrolling interests at March 31, 2023 and December 31, 2022, respectively. Net actuarial gains or losses are re-determined annually or upon remeasurement events and principally arise from changes in the rate used to discount benefit obligations and differences between expected and actual returns on plan assets. Reclassifications from accumulated other comprehensive loss to net loss attributable to the Company related to amortization of net actuarial losses were approximately $25,000 and $8,000, net of taxes, for the three months ended March 31, 2023 and 2022, respectively, and are included in other miscellaneous income in the accompanying condensed consolidated statements of operations.

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Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of consolidation—The accompanying condensed consolidated financial statements include the accounts of the Holding Company and the accounts of all subsidiaries in which the Holding Company has a controlling interest and the consolidated accounts of variable interest entities (“VIEs”) in which the Holding Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.
Unaudited Interim Financial Information	Unaudited interim financial information—The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments (including normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the three months ended March 31, 2023 are not necessarily indicative of the operating results and cash flows that may be expected for the full year.
Use of Estimates	Use of estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates.
Recently Adopted Accounting Pronouncements	Recently adopted accounting pronouncements—There are no recent accounting pronouncements that have had or are expected to have a material impact on the Company’s condensed consolidated financial statements or disclosures.

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Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of Miscellaneous Other Income

Miscellaneous other income—Miscellaneous other (loss) income consisted of the following (in thousands):

	Three Months Ended March 31,
	2023		2022
Net periodic pension (cost) benefit	$	(21)	$	112
Total miscellaneous other (loss) income	$	(21)	$	112

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Revenues (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Revenue Disaggregated by Source and Reporting Segment

The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (in thousands):

	Three Months Ended March 31, 2023
	Valencia		San Francisco		Great Park(1)		Commercial(1)		Total
Land sales and land sales—related party	$	599	$	—	$	—	$	—	$	599
Management services—related party	—		—		4,129		107		4,236
Operating properties	358		—		—		—		358
	957		—		4,129		107		5,193
Operating properties leasing revenues	346		162		—		—		508
	$	1,303	$	162	$	4,129	$	107	$	5,701

	Three Months Ended March 31, 2022
	Valencia		San Francisco		Great Park(1)		Commercial(1)		Total
Land sales and land sales—related party	$	558	$	—	$	—	$	—	$	558
Management services—related party	—		—		3,444		103		3,547
Operating properties	356		—		—		—		356
	914		—		3,444		103		4,461
Operating properties leasing revenues	245		180		—		—		425
	$	1,159	$	180	$	3,444	$	103	$	4,886

(1) The tables above do not include revenues of the Great Park Venture and the Gateway Commercial Venture, which are included in the Company’s reporting segment totals (see Notes 4 and 13).

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Investment In Unconsolidated Entities (Tables)

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The following table summarizes the statements of operations of the Great Park Venture for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Land sale and related party land sale revenues	$	8,600	$	1,819
Home sale revenues	—		17,161
Cost of land sales	—		—
Cost of home sales	—		(12,902)
Other costs and expenses	(5,857)		(8,909)
Net income (loss) of Great Park Venture	$	2,743	$	(2,831)
The Company’s share of net income (loss)	$	1,029	$	(1,062)
Basis difference accretion (amortization)	133		(239)
Equity in earnings (loss) from Great Park Venture	$	1,162	$	(1,301)

The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Inventories	$	613,239	$	605,893
Cash and cash equivalents	144,294		149,326
Receivable and other assets	40,196		43,955
Total assets	$	797,729	$	799,174
Accounts payable and other liabilities	$	151,900	$	156,085
Redeemable Legacy Interests	66,254		66,254
Capital (Percentage Interest)	579,575		576,835
Total liabilities and capital	$	797,729	$	799,174
The Company’s share of capital in Great Park Venture	$	217,342	$	216,313
Unamortized basis difference	72,846		72,713
The Company’s investment in the Great Park Venture	$	290,188	$	289,026

The following table summarizes the statements of operations of the Gateway Commercial Venture for the three months ended March 31, 2023 and 2022 (in thousands):

	Three Months Ended March 31,
	2023		2022
Rental revenues	$	2,154	$	1,938
Rental operating and other expenses	(910)		(535)
Depreciation and amortization	(994)		(984)
Interest expense	(533)		(307)
Net (loss) income of Gateway Commercial Venture	$	(283)	$	112
Equity in (loss) earnings from Gateway Commercial Venture	$	(212)	$	84

The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Real estate and related intangible assets, net	$	81,799	$	82,797
Cash	4,631		4,244
Other assets	4,533		4,588
Total assets	$	90,963	$	91,629
Notes payable, net	$	29,418	$	29,418
Other liabilities	7,568		7,951
Members’ capital	53,977		54,260
Total liabilities and capital	$	90,963	$	91,629
The Company’s investment in the Gateway Commercial Venture	$	40,483	$	40,695

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Noncontrolling Interest (Tables)

3 Months Ended

Mar. 31, 2023

Noncontrolling Interest [Abstract]

Schedule of Tax Distributions

Tax distributions to the partners of the Operating Company for the three months ended March 31, 2023 and 2022, were as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Management Partner	$	1,974	$	435
Other partners (excluding the Holding Company)	—		—
Total tax distributions	$	1,974	$	435

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Intangible Asset, Net - Related Party (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The carrying amount and accumulated amortization of the intangible asset as of March 31, 2023 and December 31, 2022 were as follows (in thousands):

	March 31, 2023		December 31, 2022
Gross carrying amount	$	129,705	$	129,705
Accumulated amortization	(90,095)		(89,448)
Net book value	$	39,610	$	40,257

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

Schedule of Related Party Transactions

Related party assets and liabilities included in the Company’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Related Party Assets:
Contract assets (see Note 3)	$	80,414	$	79,863
Operating lease right-of-use asset (corporate office lease at Five Point Gateway Campus)	15,838		16,425
Other	862		838
	$	97,114	$	97,126
Related Party Liabilities:
Reimbursement obligation	$	61,542	$	62,990
Payable to holders of Management Company’s Class B interests	6,700		6,700
Operating lease liability (corporate office lease at Five Point Gateway Campus)	12,167		12,535
Accrued advisory fees	9,075		10,525
Other	1,144		336
	$	90,628	$	93,086

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Notes Payable, Net (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

At March 31, 2023 and December 31, 2022, notes payable consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
7.875% Senior Notes due 2025	$	625,000	$	625,000
Unamortized debt issuance costs and discount	(3,965)		(4,349)
	$	621,035	$	620,651

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Supplemental Balance Sheet Information

Operating lease right-of-use assets are included in other assets or related party assets, and operating lease liabilities are included in accounts payable and other liabilities or related party liabilities on the condensed consolidated balance sheets and were as follows as of March 31, 2023 and December 31, 2022 (in thousands):

	March 31, 2023		December 31, 2022
Operating lease right-of-use assets ($15,838 and $16,425 related party, respectively)	$	17,156	$	19,067
Operating lease liabilities ($12,167 and $12,535 related party, respectively)	$	13,783	$	15,705

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2023

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Cash Flow and Other Information Related to Leases

Supplemental cash flow information for the three months ended March 31, 2023 and 2022 were as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, all of which was capitalized to inventories	$	706	$	776
Noncash lease expense	$	1,116	$	1,301
NONCASH INVESTING AND FINANCING ACTIVITIES:
Adjustment to operating lease right-of-use assets from lease modification	$	(773)	$	—
Adjustment to liability recognized under TRA	$	140	$	(1,058)

Condensed Cash Flow Information

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022 (in thousands):

	March 31, 2023		March 31, 2022
Cash and cash equivalents	$	106,577	$	203,647
Restricted cash and certificates of deposit	992		1,330
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$	107,569	$	204,977

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Segment operating results and reconciliations to the Company’s consolidated balances are as follows (in thousands):

	Revenues				Profit (Loss)
	Three Months Ended March 31,
	2023		2022		2023		2022
Valencia	$	1,303	$	1,159	$	(2,439)	$	(4,827)
San Francisco	162		180		(1,030)		(669)
Great Park	12,729		22,424		4,506		(2,071)
Commercial	2,261		2,041		(176)		215
Total reportable segments	16,455		25,804		861		(7,352)
Reconciling items:
Removal of results of unconsolidated entities—
Great Park Venture (1)	(8,600)		(18,980)		(2,743)		2,831
Gateway Commercial Venture (1)	(2,154)		(1,938)		283		(112)
Add equity in earnings (losses) from unconsolidated entities—
Great Park Venture	—		—		1,162		(1,301)
Gateway Commercial Venture	—		—		(212)		84
Corporate and unallocated (2)	—		—		(9,085)		(30,919)
Total consolidated balances	$	5,701	$	4,886	$	(9,734)	$	(36,769)

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in the Company’s consolidated results and balances as the Company accounts for its investment in each venture using the equity method of accounting.

(2) Corporate and unallocated activity is primarily comprised of corporate general and administrative expenses and restructuring expenses.

Segment assets and reconciliations to the Company’s consolidated balances are as follows (in thousands):

	March 31, 2023		December 31, 2022
Valencia	$	978,669	$	972,028
San Francisco	1,326,098		1,314,308
Great Park	915,945		916,909
Commercial	90,963		91,629
Total reportable segments	3,311,675		3,294,874
Reconciling items:
Removal of unconsolidated balances of Great Park Venture (1)	(797,729)		(799,174)
Removal of unconsolidated balances of Gateway Commercial Venture (1)	(90,963)		(91,629)
Other eliminations (2)	(52)		(174)
Add investment balance in Great Park Venture	290,188		289,026
Add investment balance in Gateway Commercial Venture	40,483		40,695
Corporate and unallocated (3)	124,880		152,166
Total consolidated balances	$	2,878,482	$	2,885,784

(1) Represents the removal of the Great Park Venture and Gateway Commercial Venture balances, which are included in the Great Park segment and Commercial segment balances at 100% of each venture’s historical basis, respectively, but are not included in the Company’s consolidated balances as the Company accounts for its investment in each venture using the equity method of accounting.

(2) Represents intersegment balances that eliminate in consolidation.

(3) Corporate and unallocated assets consist of cash and cash equivalents, receivables, right-of-use assets and prepaid expenses.

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Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The following table summarizes share-based equity compensation activity for the three months ended March 31, 2023:

	Share-Based Awards (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested at January 1, 2023	2,166	$	3.77
Granted	3,040	$	1.81
Forfeited	—	$	—
Vested	(636)	$	6.33
Nonvested at March 31, 2023	4,570	$	2.11

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

The components of net periodic cost (benefit) for the three months ended March 31, 2023 and 2022, are as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Net periodic cost (benefit):
Interest cost	$	202	$	136
Expected return on plan assets	(222)		(261)
Amortization of net actuarial loss	41		13
Net periodic cost (benefit)	$	21	$	(112)

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table summarizes the basic and diluted loss per share calculations for the three months ended March 31, 2023 and 2022 (in thousands, except shares and per share amounts):    

	Three Months Ended March 31,
	2023		2022
Numerator:
Net loss attributable to the Company	$	(4,536)	$	(17,130)
Adjustments to net loss attributable to the Company	13		122
Net loss attributable to common shareholders	$	(4,523)	$	(17,008)
Numerator—basic common shares:
Numerator for basic net loss available to Class A common shareholders	$	(4,522)	$	(17,002)
Numerator for basic net loss available to Class B common shareholders	$	(1)	$	(6)
Numerator—diluted common shares:
Net loss attributable to common shareholders	$	(4,523)	$	(17,008)
Reallocation of loss upon assumed exchange of dilutive potential securities	(85)		(477)
Allocation of diluted net loss among common shareholders	$	(4,608)	$	(17,485)
Numerator for diluted net loss available to Class A common shareholders	$	(4,607)	$	(17,479)
Numerator for diluted net loss available to Class B common shareholders	$	(1)	$	(6)
Denominator:
Basic weighted average Class A common shares outstanding	68,705,223		68,167,586
Diluted weighted average Class A common shares outstanding	68,706,164		70,050,872
Basic and diluted weighted average Class B common shares outstanding	79,233,544		79,233,544
Basic loss per share:
Class A common shares	$	(0.07)	$	(0.25)
Class B common shares	$	(0.00)	$	(0.00)
Diluted loss per share:
Class A common shares	$	(0.07)	$	(0.25)
Class B common shares	$	(0.00)	$	(0.00)
Anti-dilutive potential RSUs	847,532		—
Anti-dilutive potential Performance RSUs	3,123,408		—
Anti-dilutive potential Restricted Shares (weighted average)	346,030		1,037,064
Anti-dilutive potential Performance Restricted Shares (weighted average)	—		100,292
Anti-dilutive potential Class A common shares from exchanges (weighted average)	76,120,180		76,120,180

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Business and Organization (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) vote member	Apr. 14, 2023 USD ($) $ / shares
Class of Stock [Line Items]
Number of votes per share	1
Right to exchange, conversion ratio	1
Number of voting members | member	3
Number of votes of management	5
Percentage of voting members required for approval	75.00%
Number of votes of company	2
Number of votes for each member	1
Great Park
Class of Stock [Line Items]
Percentage of equity ownership	37.50%
Number of voting members | member	4
Heritage Fields LLC
Class of Stock [Line Items]
Percentage of equity ownership	37.50%
Subsequent Event
Class of Stock [Line Items]
Closing price (in dollars per share) | $ / shares		$ 2.32
The San Francisco Venture
Class of Stock [Line Items]
Right to exchange, conversion ratio	1
Five Point Office Venture Holdings I, LLC Acquisition | FPOVHI Member, LLC
Class of Stock [Line Items]
Percentage of equity ownership	75.00%
Equity Method Investee | Great Park | Contingent Payments Due from Related Parties
Class of Stock [Line Items]
Related party assets | $	$ 565.0
Equity Method Investee | Subsequent Event | Great Park | Legacy Incentive Compensation Receivable
Class of Stock [Line Items]
Distributions to holders of legacy interests | $		$ 498.7
Five Point Operating Company, LLC | Affiliated Entity | The San Francisco Venture
Class of Stock [Line Items]
Right to exchange, conversion ratio	1
Percentage of distributions entitled to receive	99.00%
FPOVHI Member, LLC | Five Point Office Venture Holdings I, LLC Acquisition
Class of Stock [Line Items]
Percentage of equity ownership	75.00%
Five Point Land, LLC | Subsidiary of Common Parent
Class of Stock [Line Items]
Subsidiary ownership	100.00%
San Francisco Venture | Subsidiary of Common Parent
Class of Stock [Line Items]
Subsidiary ownership	100.00%
Parent Company | Five Point Operating Company, LLC | Affiliated Entity
Class of Stock [Line Items]
Right to exchange, conversion ratio	1
Parent Company | Five Point Operating Company, LLC | Affiliated Entity | Five Point Operating Company, LLC
Class of Stock [Line Items]
Ownership of class A common stock, percentage	62.60%
Parent Company | Five Point Operating Company, LLC | Affiliated Entity | Subsequent Event
Class of Stock [Line Items]
Market capitalization of company | $		$ 344.4
Common Class B
Class of Stock [Line Items]
Conversion of common shares, ratio	0.0003

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Basis of Presentation - Components of Miscellaneous Other Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Net periodic pension (cost) benefit	$ (21)	$ 112
Total miscellaneous other (loss) income	$ (21)	$ 112

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Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue from customers	$ 5,193	$ 4,461
Revenues	5,701	4,886
Land sales and land sales—related party
Disaggregation of Revenue [Line Items]
Revenue from customers	599	558
Management services—related party | Affiliated Entity
Disaggregation of Revenue [Line Items]
Revenue from customers	4,236	3,547
Operating properties
Disaggregation of Revenue [Line Items]
Revenue from customers	358	356
Operating properties leasing revenues	508	425
Revenues	866	781
Valencia
Disaggregation of Revenue [Line Items]
Revenue from customers	957	914
Revenues	1,303	1,159
Valencia | Land sales and land sales—related party
Disaggregation of Revenue [Line Items]
Revenue from customers	599	558
Valencia | Management services—related party | Affiliated Entity
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
Valencia | Operating properties
Disaggregation of Revenue [Line Items]
Revenue from customers	358	356
Operating properties leasing revenues	346	245
San Francisco
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
Revenues	162	180
San Francisco | Land sales and land sales—related party
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
San Francisco | Management services—related party | Affiliated Entity
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
San Francisco | Operating properties
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
Operating properties leasing revenues	162	180
Great Park
Disaggregation of Revenue [Line Items]
Revenue from customers	4,129	3,444
Revenues	4,129	3,444
Great Park | Land sales and land sales—related party
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
Great Park | Management services—related party | Affiliated Entity
Disaggregation of Revenue [Line Items]
Revenue from customers	4,129	3,444
Great Park | Operating properties
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
Operating properties leasing revenues	0	0
Commercial
Disaggregation of Revenue [Line Items]
Revenue from customers	107	103
Revenues	107	103
Commercial | Land sales and land sales—related party
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
Commercial | Management services—related party | Affiliated Entity
Disaggregation of Revenue [Line Items]
Revenue from customers	107	103
Commercial | Operating properties
Disaggregation of Revenue [Line Items]
Revenue from customers	0	0
Operating properties leasing revenues	$ 0	$ 0

XML

Revenues - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) In Contract With Customer, Asset [Roll Forward]
Contract assets, beginning balance	$ 86,500	$ 87,600
Increase (decrease) in contract assets	(500)	(100)
Contract assets, ending balance	86,000	87,500
Affiliated Entity
Increase (Decrease) In Contract With Customer, Asset [Roll Forward]
Contract assets, beginning balance	79,863	79,100
Contract assets, ending balance	$ 80,414	$ 79,100

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Investment In Unconsolidated Entities - Additional Information (Details) $ in Thousands, ft² in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) a ft² individual building	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Schedule of Equity Method Investments [Line Items]
Revenue from customers	$ 5,193	$ 4,461
Number of buildings owned | building	1
Area of land (in acres) | a	50
Number of buildings on campus | building	4
The Company’s investment in the Great Park Venture	$ 332,564		$ 331,594
Equity in earnings (losses) from unconsolidated entities	1,048	(1,032)
Gateway Commercial Venture
Schedule of Equity Method Investments [Line Items]
Revenue from customers	$ 2,154	1,938
Area of land (in acres) | a	73
Number of buildings on campus | building	4
Area of gateway campus | ft²	1
Land sales | Great Park Venture
Schedule of Equity Method Investments [Line Items]
Revenue from related parties	$ 5,500	1,500
Revenue from customers	3,100	300
Rental Revenue | Gateway Commercial Venture
Schedule of Equity Method Investments [Line Items]
Revenue from related parties	$ 2,200	1,900
Great Park Venture
Schedule of Equity Method Investments [Line Items]
Percentage of equity ownership	37.50%
Remaining maximum participating Legacy Interest distribution rights	$ 66,300
Percent of future distributions to legacy interest holders	10.00%
The Company’s investment in the Great Park Venture	$ 290,188		289,026
Equity in earnings (losses) from unconsolidated entities	$ 1,162	(1,301)
Gateway Commercial Venture
Schedule of Equity Method Investments [Line Items]
Percentage of equity ownership	75.00%
The Company’s investment in the Great Park Venture	$ 40,483		40,695
Equity in earnings (losses) from unconsolidated entities	$ (212)	84
Gateway Commercial Venture | Five Point Office Venture Holdings I, LLC Acquisition
Schedule of Equity Method Investments [Line Items]
Percentage of equity ownership	75.00%
Number of individuals entitled to be appointed to executive committee | individual	2
Valencia Landbank Venture
Schedule of Equity Method Investments [Line Items]
Percentage of equity ownership	10.00%
The Company’s investment in the Great Park Venture	$ 1,900		$ 1,900
Equity in earnings (losses) from unconsolidated entities	$ 100	$ 200

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Investment In Unconsolidated Entities - Summarized Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Add equity in earnings (losses) from unconsolidated entities
Revenue from customers	$ 5,193	$ 4,461
Other costs and expenses	(17,290)	(40,751)
Net loss	(9,734)	(36,769)
The Company’s share of net income (loss)	(4,536)	(17,130)
EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES	1,048	(1,032)
Land sales and land sales—related party
Add equity in earnings (losses) from unconsolidated entities
Revenue from customers	599	558
Great Park Venture
Add equity in earnings (losses) from unconsolidated entities
The Company’s share of net income (loss)	1,029	(1,062)
Basis difference accretion (amortization)	133	(239)
EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES	1,162	(1,301)
Gateway Commercial Venture
Add equity in earnings (losses) from unconsolidated entities
EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES	(212)	84
Great Park Venture
Add equity in earnings (losses) from unconsolidated entities
Other costs and expenses	(5,857)	(8,909)
Net loss	2,743	(2,831)
Great Park Venture | Land sales and land sales—related party
Add equity in earnings (losses) from unconsolidated entities
Revenue from customers	8,600	1,819
Great Park Venture | Home Sales
Add equity in earnings (losses) from unconsolidated entities
Revenue from customers	0	17,161
Rental operating and other expenses	0	(12,902)
Great Park Venture | Land sales
Add equity in earnings (losses) from unconsolidated entities
Rental operating and other expenses	0	0
Gateway Commercial Venture
Add equity in earnings (losses) from unconsolidated entities
Revenue from customers	2,154	1,938
Rental operating and other expenses	(910)	(535)
Depreciation and amortization	(994)	(984)
Interest expense	(533)	(307)
The Company’s share of net income (loss)	$ (283)	$ 112

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Investment In Unconsolidated Entities - Summarized Balance Sheet Data (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
ASSETS
Inventories	$ 2,260,595	$ 2,239,125
INTANGIBLE ASSET, NET—RELATED PARTY	39,610	40,257
Cash and cash equivalents	106,577	131,771	$ 203,647
Other	11,075	14,676
TOTAL	2,878,482	2,885,784
LIABILITIES:
Accounts payable and other liabilities	100,304	94,426
Redeemable Legacy Interests	588,704	587,733
Notes payable, net	621,035	620,651
Capital (Percentage Interest)	614,590	618,131
Members’ capital	1,856,801	1,868,047
TOTAL	2,878,482	2,885,784
The Company’s investment in the Great Park Venture	332,564	331,594
Gateway Commercial Venture
LIABILITIES:
The Company’s investment in the Great Park Venture	40,483	40,695
Great Park Venture
LIABILITIES:
The Company’s share of capital in Great Park Venture	217,342	216,313
Unamortized basis difference	72,846	72,713
The Company’s investment in the Great Park Venture	290,188	289,026
Great Park Venture
ASSETS
Inventories	613,239	605,893
Cash and cash equivalents	144,294	149,326
Other	40,196	43,955
TOTAL	797,729	799,174
LIABILITIES:
Accounts payable and other liabilities	151,900	156,085
Redeemable Legacy Interests	66,254	66,254
Capital (Percentage Interest)	579,575	576,835
TOTAL	797,729	799,174
Gateway Commercial Venture
ASSETS
INTANGIBLE ASSET, NET—RELATED PARTY	81,799	82,797
Cash	4,631	4,244
Other	4,533	4,588
TOTAL	90,963	91,629
LIABILITIES:
Notes payable, net	29,418	29,418
Other	7,568	7,951
Members’ capital	53,977	54,260
TOTAL	$ 90,963	$ 91,629

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Noncontrolling Interests - Additional Information (Details) shares in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) class	Dec. 31, 2019 USD ($) shares	Dec. 31, 2022 USD ($)
Noncontrolling Interest [Line Items]
Holding period for right to exchange	12 months
Right to exchange, conversion ratio	1
Redeemable noncontrolling interest, common stock class C units	$ 25.0		$ 25.0
San Francisco Venture
Noncontrolling Interest [Line Items]
Issuance of Class C common shares (in shares) | shares		25.0
Proceeds from issuance of redeemable noncontrolling interest		$ 25.0
Maximum amount payable, class C units		25.0
Infrastructure development costs		25.0
San Francisco Venture | Maximum
Noncontrolling Interest [Line Items]
Authorized contribution amount		$ 25.0
The San Francisco Venture
Noncontrolling Interest [Line Items]
Holding period for right to exchange	12 months
Right to exchange, conversion ratio	1
Number of classes of membership units | class	3
Unitholder request for redemption, minimum ownership	50.10%
Conversion of Class B Common Shares Into Class A Common Shares
Noncontrolling Interest [Line Items]
Conversion of common shares, ratio	0.0003
Five Point Operating Company, LLC
Noncontrolling Interest [Line Items]
Noncontrolling interest percentage of outstanding common units	37.40%
Five Point Operating Company, LLC | Class A Units | Affiliated Entity
Noncontrolling Interest [Line Items]
Ownership percentage of outstanding common units	62.60%
Five Point Operating Company, LLC | Class B Units | Affiliated Entity
Noncontrolling Interest [Line Items]
Ownership percentage of outstanding common units	100.00%

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Noncontrolling Interests - Schedule of Tax Distributions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Noncontrolling Interest [Line Items]
Total tax distributions	$ 1,974	$ 435
Five Point Operating Company, LLC
Noncontrolling Interest [Line Items]
Total tax distributions	1,974	435
Management Partner | Five Point Operating Company, LLC
Noncontrolling Interest [Line Items]
Total tax distributions	1,974	435
Other partners (excluding the Holding Company) | Five Point Operating Company, LLC
Noncontrolling Interest [Line Items]
Total tax distributions	$ 0	$ 0

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Consolidated Variable Interest Entity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entity [Line Items]
Combined assets	$ 2,878,482	$ 2,885,784
Inventories	2,260,595	2,239,125
Related party assets	97,114	97,126
Combined liabilities	996,681	992,737
Related party liabilities	90,628	93,086
Intangibles	39,610	40,257
Accounts payable and other liabilities	$ 100,304	94,426
San Francisco Venture
Variable Interest Entity [Line Items]
Distributions	99.00%
Variable Interest Entity, Primary Beneficiary | San Francisco Venture
Variable Interest Entity [Line Items]
Combined assets	$ 1,330,000	1,310,000
Inventories	1,320,000	1,310,000
Related party assets	900	800
Combined liabilities	68,300	67,300
Related party liabilities	61,500	63,000
Variable Interest Entity, Primary Beneficiary | FP LP And FPL
Variable Interest Entity [Line Items]
Combined assets	1,100,000	1,100,000
Inventories	936,700	927,900
Related party assets	80,400	79,900
Combined liabilities	76,100	77,200
Related party liabilities	7,500	6,700
Intangibles	39,600	40,300
Accounts payable and other liabilities	$ 68,600	$ 70,500

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Intangible Asset, Net - Related Party (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount	$ 129,705,000		$ 129,705,000
Accumulated amortization	(90,095,000)		(89,448,000)
Net book value	39,610,000		$ 40,257,000
Amortization expense	$ 600,000	$ 0

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Related Party Transactions - Related Party Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Related Party Assets:
Contract assets	$ 86,000	$ 86,500	$ 87,500	$ 87,600
Operating lease right-of-use assets	17,156	19,067
Other	11,075	14,676
Related Party Liabilities [Abstract]
Due to related parties	90,628	93,086
Operating lease liability	13,783	15,705
Affiliated Entity
Related Party Assets:
Contract assets	80,414	79,863	$ 79,100	$ 79,100
Operating lease right-of-use assets	15,838	16,425
Other	862	838
Total Related Party Assets	97,114	97,126
Related Party Liabilities [Abstract]
Operating lease liability	12,167	12,535
Other	1,144	336
Total Related Party Liabilities	90,628	93,086
Reimbursement obligation | Affiliated Entity
Related Party Liabilities [Abstract]
Due to related parties	61,542	62,990
Payable to holders of Management Company’s Class B interests | Affiliated Entity
Related Party Liabilities [Abstract]
Due to related parties	6,700	6,700
Accrued advisory fees | Affiliated Entity
Related Party Liabilities [Abstract]
Due to related parties	$ 9,075	$ 10,525

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Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Contract assets	$ 86,000	$ 87,500	$ 86,500	$ 87,600
Equity Method Investee | Legacy Incentive Compensation Receivable | Great Park Venture
Related Party Transaction [Line Items]
Percentage of distributions during initial term	9.00%
Percentage of distributions after initial term	6.75%
Affiliated Entity
Related Party Transaction [Line Items]
Contract assets	$ 80,414	79,100	79,863	$ 79,100
Affiliated Entity | Legacy Incentive Compensation Receivable
Related Party Transaction [Line Items]
Contract assets	78,500		$ 77,400
Affiliated Entity | Development Management Agreement
Related Party Transaction [Line Items]
Revenue from related parties	$ 4,100	$ 3,400

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Notes Payable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Apr. 30, 2021
Debt Instrument [Line Items]
Promissory note issued	$ 621,035	$ 620,651
Unamortized debt issuance costs and discount	(3,965)	(4,349)
Outstanding letters of credit	1,000	1,000
Unsecured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Senior unsecured revolving credit facility, maximum borrowing capacity			$ 125,000
Long-Term line of credit	0
Outstanding letters of credit	$ 0
7.875% Senior Notes due 2025 | Senior Notes
Debt Instrument [Line Items]
Interest rate on new notes	7.875%
Promissory note issued	$ 625,000	$ 625,000

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Tax Receivable Agreement (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Payable pursuant to tax receivable agreement	$ 173,208,000		$ 173,068,000
TRA payments	$ 0	$ 0

XML

Commitments and Contingencies - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 17,156	$ 19,067
Operating lease liabilities	$ 13,783	$ 15,705
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	RELATED PARTY ASSETS, OTHER ASSETS	RELATED PARTY ASSETS, OTHER ASSETS
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accounts Payable and Accrued Liabilities, Related party liabilities	Accounts Payable and Accrued Liabilities, Related party liabilities
Affiliated Entity
Lessee, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 15,838	$ 16,425
Operating lease liabilities	$ 12,167	$ 12,535

XML

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Remaining estimated maximum potential amount of monetary payments subject to guaranty	$ 10,200
Outstanding letters of credit	1,000	$ 1,000
Asset Pledged as Collateral
Lessee, Lease, Description [Line Items]
Restricted cash and cash equivalents	1,000	1,000
The San Francisco Venture
Lessee, Lease, Description [Line Items]
Guaranty of infrastructure obligations, maximum obligation	198,300	198,300
Surety Bond
Lessee, Lease, Description [Line Items]
Outstanding letters of credit	$ 320,000	$ 315,000

XML

Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, all of which was capitalized to inventories	$ 706	$ 776
Noncash lease expense	1,116	1,301
NONCASH INVESTING AND FINANCING ACTIVITIES:
Adjustment to operating lease right-of-use assets from lease modification	(773)	0
Adjustment to liability recognized under TRA	$ 140	$ (1,058)

XML

Supplemental Cash Flow Information - Condensed Cash Flow Information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents	$ 106,577	$ 131,771	$ 203,647
Restricted cash and certificates of deposit	992	992	1,330
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$ 107,569	$ 132,763	$ 204,977	$ 266,792

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Segment Reporting - Additional Information (Details)	Mar. 31, 2023 a ft² building
Segment Reporting Information [Line Items]
Square footage of building | ft²	189,000
Number of buildings on campus | building	4
Area of land (in acres)	50
Gateway Commercial Venture
Segment Reporting Information [Line Items]
Area of land (in acres)	50
Great Park
Segment Reporting Information [Line Items]
Percentage of equity ownership	37.50%
Gateway Commercial Venture
Segment Reporting Information [Line Items]
Percentage of equity ownership	75.00%

XML

Segment Reporting - Revenues and Profit (loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Revenues	$ 5,701	$ 4,886
Profit (Loss)	(9,734)	(36,769)
Equity in earnings (losses) from unconsolidated entities	1,048	(1,032)
Great Park Venture
Segment Reporting Information [Line Items]
Equity in earnings (losses) from unconsolidated entities	1,162	(1,301)
Gateway Commercial Venture
Segment Reporting Information [Line Items]
Equity in earnings (losses) from unconsolidated entities	(212)	84
Operating Segments
Segment Reporting Information [Line Items]
Revenues	16,455	25,804
Profit (Loss)	861	(7,352)
Corporate and Unallocated
Segment Reporting Information [Line Items]
Profit (Loss)	(9,085)	(30,919)
Valencia
Segment Reporting Information [Line Items]
Revenues	1,303	1,159
Valencia | Operating Segments
Segment Reporting Information [Line Items]
Revenues	1,303	1,159
Profit (Loss)	(2,439)	(4,827)
San Francisco
Segment Reporting Information [Line Items]
Revenues	162	180
San Francisco | Operating Segments
Segment Reporting Information [Line Items]
Revenues	162	180
Profit (Loss)	(1,030)	(669)
Great Park Venture
Segment Reporting Information [Line Items]
Revenues	4,129	3,444
Great Park Venture | Operating Segments
Segment Reporting Information [Line Items]
Revenues	12,729	22,424
Profit (Loss)	4,506	(2,071)
Great Park Venture | Removal of Results of Unconsolidated Entities
Segment Reporting Information [Line Items]
Revenues	(8,600)	(18,980)
Profit (Loss)	(2,743)	2,831
Commercial
Segment Reporting Information [Line Items]
Revenues	107	103
Commercial | Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,261	2,041
Profit (Loss)	(176)	215
Gateway Commercial Venture | Removal of Results of Unconsolidated Entities
Segment Reporting Information [Line Items]
Revenues	(2,154)	(1,938)
Profit (Loss)	$ 283	$ (112)

XML

Segment Reporting - Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Assets	$ 2,878,482	$ 2,885,784
Add investment balance	332,564	331,594
Great Park Venture
Segment Reporting Information [Line Items]
Add investment balance	290,188	289,026
Gateway Commercial Venture
Segment Reporting Information [Line Items]
Add investment balance	40,483	40,695
Operating Segments
Segment Reporting Information [Line Items]
Assets	3,311,675	3,294,874
Other eliminations
Segment Reporting Information [Line Items]
Assets	(52)	(174)
Corporate and Unallocated
Segment Reporting Information [Line Items]
Assets	124,880	152,166
Valencia | Operating Segments
Segment Reporting Information [Line Items]
Assets	978,669	972,028
San Francisco | Operating Segments
Segment Reporting Information [Line Items]
Assets	1,326,098	1,314,308
Great Park Venture | Operating Segments
Segment Reporting Information [Line Items]
Assets	915,945	916,909
Great Park Venture | Removal of Results of Unconsolidated Entities
Segment Reporting Information [Line Items]
Assets	(797,729)	(799,174)
Commercial | Operating Segments
Segment Reporting Information [Line Items]
Assets	90,963	91,629
Gateway Commercial Venture | Removal of Results of Unconsolidated Entities
Segment Reporting Information [Line Items]
Assets	$ (90,963)	$ (91,629)

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Share-Based Compensation - Equity Compensation Activity (Details) - Restricted Stock shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Awards
Nonvested, beginning balance (in shares) | shares	2,166
Granted (in shares) | shares	3,040
Forfeited (in shares) | shares	0
Vested (in shares) | shares	(636)
Nonvested, ending balance (in shares) | shares	4,570
Weighted-Average Grant Date Fair Value
Nonvested, beginning balance (in dollars per share) | $ / shares	$ 3.77
Granted (in dollars per share) | $ / shares	1.81
Forfeited (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	6.33
Nonvested, ending balance (in dollars per share) | $ / shares	$ 2.11

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Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Jan. 31, 2023	Jan. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 800	$ 4,100
Estimated fair value at vesting of share-based awards			1,500
Reacquisition of share based compensation awards for tax-withholding purposes			202	$ 2,736
Restructuring Charges
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			3,000
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 1,100
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reacquisition of share based compensation awards for tax-withholding purposes	$ 200	$ 2,700

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Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net periodic cost (benefit):
Interest cost	$ 202	$ 136
Expected return on plan assets	(222)	(261)
Amortization of net actuarial loss	41	13
Net periodic cost (benefit)	$ 21	$ (112)

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Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense (benefit), other than provision	$ 0	$ 0
Pre-tax income (loss)	$ (9,726,000)	$ (36,764,000)

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Financial Instruments and Fair Value Measurements and Disclosures (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Estimated Fair Value | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	$ 563.8	$ 525.5
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable, carrying value	$ 621.0	$ 620.7

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Earnings Per Share - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023
Common Class B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Per share distributions for Class A Common Shareholders	0.03%

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Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss attributable to the Company	$ (4,536)	$ (17,130)
Adjustments to net loss attributable to the Company	13	122
Net loss attributable to common shareholders	(4,523)	(17,008)
Reallocation of loss upon assumed exchange of dilutive potential securities	(85)	(477)
Numerator for diluted net (loss) income available to Class A/B common shareholders	$ (4,608)	$ (17,485)
Restricted Stock Units (RSUs)
Diluted loss per share:
Anti-dilutive potential securities (in shares)	847,532	0
Performance Restricted Stock Units (RSUs)
Diluted loss per share:
Anti-dilutive potential securities (in shares)	3,123,408	0
Restricted Shares
Diluted loss per share:
Anti-dilutive potential securities (in shares)	346,030	1,037,064
Performance Restricted Shares
Diluted loss per share:
Anti-dilutive potential securities (in shares)	0	100,292
Common Class A
Diluted loss per share:
Anti-dilutive potential securities (in shares)	76,120,180	76,120,180
Common Class A
Numerator:
Net loss attributable to common shareholders	$ (4,522)	$ (17,002)
Numerator for diluted net (loss) income available to Class A/B common shareholders	$ (4,607)	$ (17,479)
Denominator:
Basic weighted average Class A/B common shares outstanding (in shares)	68,705,223	68,167,586
Diluted weighted average Class A/B common shares outstanding (in shares)	68,706,164	70,050,872
Basic loss per share:
Class A/B common shares (in dollars per share)	$ (0.07)	$ (0.25)
Diluted loss per share:
Class A/B common shares (in dollars per share)	$ (0.07)	$ (0.25)
Common Class B
Numerator:
Net loss attributable to common shareholders	$ (1)	$ (6)
Numerator for diluted net (loss) income available to Class A/B common shareholders	$ (1)	$ (6)
Denominator:
Basic weighted average Class A/B common shares outstanding (in shares)	79,233,544	79,233,544
Diluted weighted average Class A/B common shares outstanding (in shares)	79,233,544	79,233,544
Basic loss per share:
Class A/B common shares (in dollars per share)	$ (0.00)	$ (0.00)
Diluted loss per share:
Class A/B common shares (in dollars per share)	$ (0.00)	$ (0.00)

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Defined benefit pension plan, tax benefits	$ 800		$ 800
Accumulated other comprehensive loss included in noncontrolling interests	(1,856,801)	$ (1,865,612)	(1,868,047)	$ (1,900,378)
Total Members’ Capital
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unamortized defined benefit pension plan net actuarial losses	3,000		3,000
Accumulated other comprehensive loss included in noncontrolling interests	(614,590)	(615,332)	(618,131)	$ (634,424)
AOCI Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss included in noncontrolling interests	1,800		$ 1,900
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassifications from accumulated other comprehensive loss	$ 25	$ 8