Five Point Holdings, LLCFPH
Five Point Holdings, LLC Revenue Disclosure
REVENUES
The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (see Note 16) (in thousands):
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Valencia | San Francisco | Great Park(1) | Hearthstone(2) | Total | |||||||||||||||||||||||||
Land sales and land sales—related party | $ | 42,450 | $ | — | $ | — | $ | — | $ | 42,450 | |||||||||||||||||||
Management services—related party | — | — | 53,512 | 11,792 | 65,304 | ||||||||||||||||||||||||
| Operating properties | 405 | — | — | — | 405 | ||||||||||||||||||||||||
| 42,855 | — | 53,512 | 11,792 | 108,159 | |||||||||||||||||||||||||
| Operating properties leasing revenues | 1,162 | 699 | — | — | 1,861 | ||||||||||||||||||||||||
| $ | 44,017 | $ | 699 | $ | 53,512 | $ | 11,792 | $ | 110,020 | ||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Valencia | San Francisco | Great Park(1) | Unallocated | Total | |||||||||||||||||||||||||
Land sales and land sales—related party | $ | 139,097 | $ | — | $ | — | $ | — | $ | 139,097 | |||||||||||||||||||
Management services—related party | — | — | 95,955 | 449 | 96,404 | ||||||||||||||||||||||||
| Operating properties | 483 | — | — | — | 483 | ||||||||||||||||||||||||
| 139,580 | — | 95,955 | 449 | 235,984 | |||||||||||||||||||||||||
| Operating properties leasing revenues | 1,264 | 678 | — | — | 1,942 | ||||||||||||||||||||||||
| $ | 140,844 | $ | 678 | $ | 95,955 | $ | 449 | $ | 237,926 | ||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Valencia | San Francisco | Great Park(1) | Unallocated | Total | |||||||||||||||||||||||||
Land sales and land sales—related party | $ | 161,391 | $ | — | $ | — | $ | — | $ | 161,391 | |||||||||||||||||||
Management services—related party | — | — | 47,190 | 431 | 47,621 | ||||||||||||||||||||||||
| Operating properties | 840 | — | — | — | 840 | ||||||||||||||||||||||||
| 162,231 | — | 47,190 | 431 | 209,852 | |||||||||||||||||||||||||
| Operating properties leasing revenues | 1,226 | 654 | — | — | 1,880 | ||||||||||||||||||||||||
| $ | 163,457 | $ | 654 | $ | 47,190 | $ | 431 | $ | 211,732 | ||||||||||||||||||||
(1) The tables above do not include revenues of the Great Park Venture, which are included in the Company’s reporting segment totals (see Notes 5 and 16).
(2) Hearthstone revenues are for the period from the Acquisition Date through December 31, 2025.
The Company, through Five Point Communities, LP (“FP LP”), and Five Point Communities Management, Inc., (“FP Inc.” and together with FP LP, the “Management Company”), has a development management agreement, as amended and restated (“A&R DMA”), with the Great Park Venture. The A&R DMA had an original term commencing on December 29, 2010 and ending on December 31, 2021 (the “Initial Term”). In addition to an annual fixed base fee, the Initial Term of the A&R DMA included incentive compensation that becomes payable in connection with and as a percentage of distributions made to the members of the Great Park Venture, including distributions made in periods after the Initial Term. Consideration in the form of contingent incentive compensation from the A&R DMA was recognized as revenue and a contract asset as services were provided over the contract term. By mutual agreement, the Initial Term had been extended through December 31, 2022 (the “2022 Extension”). In December 2022, the Company and the Great Park Venture entered into a second amendment to the A&R DMA establishing the terms of service through December 31, 2024 (the “First Renewal Term”). The compensation payable to the Company during the First Renewal Term included an annual fixed base fee and incentive compensation payments payable as a percentage of distributions made to the members of the Great Park Venture during the First Renewal Term. In September 2024, the Company and the Great Park Venture entered into a third amendment to the A&R DMA. Under the third amendment, the term of the A&R DMA has been renewed through December 31, 2026 (the “Second Renewal Term”). The compensation payable to the Company during the Second Renewal Term includes a $13.5 million annual fixed base fee beginning in 2025, which reflects an increase from the $12.0 million annual fixed base fee under the First Renewal Term, and incentive compensation payments payable as a percentage of distributions made to the members of the Great Park Venture during the Second Renewal Term.
Due to the contingencies associated with estimating the amount of incentive compensation that ultimately will become payable for services provided, the Company has constrained, under the guidance of ASC Topic 606, its estimate of incentive compensation revenues such that the Company believes that a significant reversal of revenues is not probable of occurring. As the contingencies are resolved in future periods, the Company may record adjustments to revenue to reflect changes in the Company’s estimate of incentive compensation expected to be received. Significant judgment is involved in management’s estimate of the amount of variable consideration included in the transaction price. In making this estimate, management utilizes projected cash flows of the operations of the Great Park Venture. These cash flows are significantly affected by estimates and assumptions related to market supply and demand, the local economy, projected pace of sales of homesites, projected pricing over the estimated selling period, the length of the estimated development and selling periods, remaining development, general, and administrative costs, the contract period, and other factors.
The Hearthstone Venture generates asset management fee revenues, primarily from the management of land banking funds. Asset management services are satisfied over time because the customer receives and consumes the benefits of the management services daily. Base fee consideration is variable since over the contract period the management fee varies based on fluctuations in the basis of the calculation. The basis of the calculation is the amount of invested capital, or a similar measurement, multiplied by a defined fee rate. The base management fee is generally calculated and payable monthly allowing any uncertainty about the amount of the fee to be resolved and the full amount of the fee to be recognized as revenue during the reporting period. Any uncollected fees are recognized as a receivable and included in related party assets on the consolidated balance sheet. The Hearthstone Venture's asset management contracts may also contain a performance fee payable upon a managed fund achieving a defined rate of return to the customer. Performance fees are recognized as management services are provided over the service period estimated to be needed to reach the performance threshold. Performance fees are constrained and only recognized to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. When performance fees are recognized in advance of payments due, a contract asset is recognized and is included in related party assets on the consolidated balance sheet.
Contract balances are recorded on the consolidated balance sheet in either related party assets or other assets for receivables from customers and contract assets (unbilled receivables) depending on whether the customer is a related party. Similarly, contract liabilities (deferred revenue) are included in accounts payable and other liabilities or related party liabilities.
The opening and closing balances of the Company’s contract assets for the year ended December 31, 2025 were $101.8 million ($100.8 million related party, see Note 10) and $89.7 million ($87.5 million related party, see Note 10), respectively. The net decrease of $12.1 million between the opening and closing balances of the Company’s contract assets primarily resulted from the receipt of $62.8 million in incentive compensation payments from the Great Park Venture partially offset by (i) additional incentive compensation revenue recognized during the period that resulted from changes in the estimated constrained transaction price of the A&R DMA and (ii) $10.4 million primarily for performance fees recognized as part of the Hearthstone Venture’s acquisition (see Note 3). The Company received an additional $5.1 million in incentive compensation payments from the Great Park Venture related to
the Second Renewal Term during the year ended December 31, 2025. The balance represents a contract liability for payments received prior to the satisfaction of the associated performance obligation and is included in related party liabilities as of December 31, 2025.
The opening and closing balances of the Company’s contract assets for the year ended December 31, 2024 were $72.1 million ($69.1 million related party, see Note 10) and $101.8 million ($100.8 million related party, see Note 10), respectively. The net increase of $29.7 million between the opening and closing balances of the Company’s contract assets primarily resulted from additional incentive compensation revenue recognized during the period that resulted from changes in the estimated constrained transaction price of the A&R DMA partially offset by the receipt of $50.9 million in incentive compensation payments from the Great Park Venture and the receipt of marketing fees from prior period land sales.
Other than the incentive compensation contract liability, the opening and closing balances of the Company’s other receivables from contracts with customers and contract liabilities for the years ended December 31, 2025 and 2024 were insignificant.
The Company applies the disclosure exemptions associated with remaining performance obligations for contracts with an original expected term of one year or less, contracts for which revenue is recognized in proportion to the amount of services performed and variable consideration that is allocated to wholly unsatisfied performance obligations for services that form part of a series of services.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Mar 4, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 14, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.