Greetings and welcome to the Five Point Holdings Second Quarter 2026 Conference Call. As a reminder, this call is being recorded. Today's call may include forward-looking statements regarding Five Point's business, financial condition, operations, cash flow, strategy, acquisitions, and prospects. Forward-looking statements represent Five Point's estimates on the date of this conference call and are not intended to give any assurance as to actual future results. Because forelooking statements relate to matters that have not yet occurred, these statements are inherently subject to risk and uncertainties. Many factors could affect future results and may cause 5 Points actual risk activity or results to differ materially from the activities and results anticipated in forelooking statements. These factors include those described in today's press release and 5 Points SEC filings, including those in the Risk Factor section of 5 Points Most Recent Annual Report on Form 10-K filed with the SEC. Please note that the five-point assumes no obligation to update any forward-licking statements. Now, I would like to turn the call over to Dan Hedigan, President and Chief Executive Officer.

Thank you. Good afternoon, and thank you for joining us. I have with me today Mike Alvarado, our Chief Operating Officer and Chief Legal Officer, Kim Tobler, our Chief Financial Officer, and Leo Key, our Senior Vice President of Finance and Reporting. Today, I'll review our second quarter results, discuss the progress we've made in executing our strategy, and share why we believe Five Point is becoming a stronger, more diversified company that is positioned to create long-term shareholder value. Mike will then discuss our operational highlights in more detail, after which Kim will review our financial results, will then open the line for questions. Over the past several years, our objective has been straightforward. unlock the substantial value embedded in our California assets while building a business capable of generating more consistent and predictable earnings over time. During the second quarter, we continue to make meaningful progress on both fronts. Our legacy master plan communities remain among the highest quality residential land assets in California. At the same time, our investment in the Hearthstone Venture represents an important evolution for Five Point, expanding our capabilities beyond land development into land banking and asset management. Together, these businesses provide multiple avenues for creating value and position us to participate more broadly in the home building ecosystem. For the second quarter, Five Point generated net income of $29.9 million, driven in large part by the Great Park Ventures sale of 17.7 acres of commercial land planned for a senior living retirement community for $159.3 million, which represents a land value of $9 million per acre. This transaction is another reminder of the significant value embedded within our master plan communities, which continue to provide opportunities to develop additional products that are complementary to our traditional residential and commercial uses. During the quarter, we received $79.6 million in distributions and incentive compensation payments from our various joint ventures, and from a balance sheet perspective, we ended a quarter with total liquidity of $565.9 million, including $348.4 million of cash and cash equivalents. Turning to our operating environment, notwithstanding market conditions that remain somewhat choppy and complicated, we're seeing continued support for land values of our active communities. Given the scarcity of entitled land in Southern California and the exceptional locations of both Great Park and Valencia, we're still engaged with builders who continue to pursue buying home sites in these communities, which Mike will address in more detail in his remarks. We remain highly confident in the long-term value of these communities and our ability to sell land and grow returns over time. Additionally, our balance sheet strength gives us the flexibility to work collaboratively with builders to structure transactions in a way to optimize land values through varying market cycles. While our California communities remain an important source of future value creation, they no longer represent the entirety of our growth story. When I became CEO, our initial priorities were to simplify the business, reduce overhead, strengthen the balance sheet, and continue executing against our long-term land development strategy. We made substantial progress in each of those areas, and today our debt-to-capital ratio stands at just 16.2%, providing us with considerable financial flexibility. With that foundation in place, our attention shifted toward building a business with more recurring revenue, lower capital intensity, and broader growth opportunities. That strategic focus led us to Hearthstone, which represents the first step in the evolution of our business beyond our three core communities. Through Hearthstone, we now participate in land banking and capital solutions for builders across the country while generating recurring management and investment income, adding to the management fees and incentive compensation we already earned through our Great Park Venture. Unlike traditional land development, these activities require significantly less balance sheet capital but still benefit from Five Point's community development expertise. We believe this creates a highly complementary business model. Our California communities continue to generate long-term value through land development and monetization. A hearthstone expands our reach nationally through fee-based management services and strategic capital deployment. Importantly, these two businesses reinforce one another. Our experience developing some of the country's most complex master plan communities gives us unique expertise in underwriting land, structuring transactions, managing development risk, and creating value. Those capabilities translate naturally into the capital management business and differentiate us as a partner to both institutional investors and national homebuilders. Our long-term outlook for the housing market remains constructive. The United States continues to face significant housing shortage, industry's largest builders increasingly rely on capital efficient land light operating models. At the same time, institutional investors continue seeking opportunities to deploy capital into residential land and development projects. We believe that we are uniquely positioned at the intersection of those two trends. Looking ahead, our objective is to continue transforming FivePoint into a company with two highly complementary value drivers, a portfolio of well-positioned master plan communities, and an increasingly scalable national residential asset management platform. As recurring fee-based income becomes a larger contributor to our earnings mix over time, I believe our business will become more diversified, more predictable, and less dependent on the timing of individual land sales. With longstanding relationships across the home building industry, partnerships with leading institutional capital providers, and the capabilities we've developed over decades of land development, we're well positioned to expand this platform and create meaningful long-term value for our shareholders. Let me now provide an outlook for the rest of the year. We have great confidence in the value of our land and supply-constrained California markets. Accordingly, even in the currently evolving market conditions, we're not going to update or alter our prior guidance of approximately $100 million in consolidated net income at this time. Although market conditions remain uncertain, we currently believe our land will sell as expected, with the caveat that interest rates and affordability factors could affect timing. We currently expect our remaining land sales activity will occur in the fourth quarter. We'll have more to report on our Q3 earnings call as we finalize our land sales discussions with builders. Let me now conclude with an operational update. During the quarter, our teams continue to execute against our development plans, advance infrastructure improvements, and prepare future phases for eventual delivery. Maintaining and develop momentum during periods of slower home sales activity positions us to respond efficiently as demand strengthens and allow our builder partners to move quickly when they're ready to commit additional capital. Ultimately, our primary operational objective has not changed, which is to optimize the long-term value of these extraordinary assets. We believe that requires the patience, discipline capital allocation, and long-term perspective that we have consistently demonstrated. With that, I'd like to turn the call over to Mike who will provide more detail on our operations this quarter.

Thanks, Dan. Let me start by providing you with some updates on our communities, starting with the Gray Park neighborhoods. At the Gray Park, the second quarter highlighted the depth and flexibility of this community. As Dan mentioned, during the quarter, the Gray Park Venture closed a sale of approximately 17.7 acres of land planned for a senior live-in retirement community for a purchase price of approximately $159 million. While this retirement community will be the first in our master plans here in California, we believe this type of development is capable of being included in each of our communities, especially considering the size and age of the baby boomer demographic. On the residential side, builders sold 56 homes at the Gray Park during the second quarter, compared to 82 homes in the first quarter. Even though absorption has moderated from the pace we saw in prior periods, particularly as certain collections have sold out, we continue to see steady engagement from the home buyers and continued builder interest in the community. We currently have 14 actively selling programs in the Great Park neighborhoods, with five additional programs planned to open later this year. As Dan mentioned, we have builders in various stages of due diligence and contracts on five new residential programs, totaling approximately 28.5 acres. With that said, while we currently expect to execute and close these sales this fiscal year, market conditions could alter the timing. As a reminder, some of these home sites are located on land that we acquired from the city as part of the land exchange transaction we recently completed with them, which was the same transaction that allowed us to convert approximately 100 acres from commercial land into residential land. We will continue to monetize this converted residential land in the quarters and years ahead. Next, I'll discuss Valencia, our other active community. During the second quarter, builders sold 78 homes at Valencia, compared to 90 homes in the first quarter. Although sales moderated sequentially, we continue to see homebuyer engagement at our first village, and we remain focused on pacing development and land sales in a way that aligns with builder demand and broader market conditions. We currently have 12 builder programs open and actively selling, and we anticipate five new programs will open over the remainder of the year. We are also currently finalizing documentation for residential land sales in 26, although market conditions could alter the timing here as well. As of the end of the second quarter, we have sold over 3,000 home sites at Valencia since commencing home site sales in 2019. That is still only a portion of the long-term opportunity in this master plan community. Valencia is designed to deliver much-needed housing supply into a market that remains chronically undersupplied. We also continue to advance the next phases of development at Valencia. As we discussed on our last call, the entitlement approvals we secured for Enchata South and Valencia Commerce Center significantly enhance the long-term value and development potential of this community. Our teams continue to work through infrastructure plans, ministerial permits, and other development steps necessary to bring those next villages forward. We also continue to advance our regulatory approvals for three additional villages. Upon approval, these villages, together with our existing entitlements, would bring our total to more than 10,000 entitled homesites. Turning to San Francisco. At San Francisco, we continue to advance the next phase of development at Candlestick. As a reminder, the approvals we received in 2024 and 2025 provide the ability to include up to approximately 2.8 million square feet of research and development and technology-oriented office space, approximately 7,200 homes, and approximately 550,000 square feet of space for retail, hotel, entertainment, and other community uses. In June, we recorded our subdivision maps for the next phase of development and we are preparing to initiate grading activities in the third quarter. We believe our timing at Candlestick could not be better for a number of reasons. First, the AI and technology boom is creating renewed demand for office space, talent, housing, and large-scale campus environments, and San Francisco remains at the center of that activity. Second, San Francisco's new political leadership is increasingly focused on economic recovery, housing production, public safety, and making the city more business-friendly. Third, the commercial market is showing clear signs of recovery, with leasing activity improving and large users beginning to re-engage with the city given the now business-friendly climate. Fourth, residential fundamentals are strengthening, with rents and home values moving higher while new housing supply remains highly constrained. Fifth, San Francisco's enduring strengths, including world-class universities, a deeply educated labor pool, leading health systems, proximity to the center of technology and AI innovation and its rich culture and history. All of these things will continue to support the city's long-term growth and attractiveness. Against this backdrop, Five Point Control is the only project of this scale offering a potential campus location within the city and county of San Francisco and within community distance of Silicon Valley. Taken together, these trends create a very favorable business environment for Candlestick. With our entitlements approved, maps recorded, public financing secured, and infrastructure work beginning, we believe Candlesick is well positioned to benefit from San Francisco's next cycle of growth. Accordingly, our next step is to begin engaging with potential large users who are looking for a unique campus environment and who can help anchor Candlesick's rebirth as a vibrant, mixed-use urban community located directly on the San Francisco Bay. To wrap up, we are extremely excited about the opportunities ahead and remain focused on disciplined execution as we continue building the next chapter of Five Point. Now I'll turn it over to Kim, who will provide more detail on our financial results for the quarter.

Thank you, Mike. As Dan mentioned, I will share additional information about our financial results for the second quarter. Our second quarter consolidated in income was $29.9 million and was largely made up of the following components. We had $14.7 million of management services revenue, $9.1 million of which was derived from our management of the Great Park Venture, $5.8 million of which was incentive compensation earned from the Great Park, and $5.6 million earned from our Hearthstone asset management platform. We had $5.6 million of costs and expenses associated with our management services activities, $2.4 million of which was associated with the Great Park Venture, and $3.2 million associated with Hearthstone. We recognized $41 million of equity and earnings from our unconsolidated entities, $39.7 million of which came from the Great Park Venture. The equity and earnings from the Great Park Venture resulted from the net income to this venture of $114.2 million, which was largely attributable to the land sale that Dan and Mike discussed that generated revenue of $159.3 million in a 76.5% gross margin. Our second quarter SG&A was $14.3 million compared with the prior year's second quarter of $15.6 million. Finally, we recognized $6.2 million of tax expense. Now let me provide an update about our cash and liquidity and debt positions. As Dan mentioned, we ended the quarter with $348.4 million in cash, as well as $217.5 million of availability on a revolving credit facility, resulting in total liquidity of $565.9 million. This doesn't include $229.6 million of cash that was held by the Great Park Venture as of June 30th. The significant sources of cash this quarter included $79.6 million of distributions and incentive compensation payments from the following joint ventures. A $33.1 million distribution from the Gateway Venture, which came from the final payment of amounts due from the buyer following the sale of the last building owned by that venture at the Five Point Gateway campus here in Irvine. A $34.4 million distribution from the Great Park Venture, a $9.3 million incentive compensation payment from the Great Park Venture, and a $2.8 million distribution from our Valencia Land Bank Venture and our other co-investments in the Hearthstone Managed Funds. The significant uses of cash this quarter were our semi-annual interest payment on our senior notes of $18.6 million, development costs at Valencia and San Francisco that totaled $32.2 million, EB-5 principal and interest payments of $2.2 million, and repurchases of approximately 623,000 shares of Five Points Class A shares for $3.1 million. Just a quick comment about our share repurchases. We continue to view our shares as attractive at these levels, but we're balancing buybacks against other capital allocation opportunities, including growing the Hearthstone platform and investing in our legacy communities. Given the current nature of the housing market, we believe maintaining financial flexibility is the right approach. However, we believe the authorization is an important tool in our efforts to maximize long-term shareholder value. With respect to our debt at the end of the quarter, our total debt-to-capitalization ratio, as Dan mentioned, was 16.2%, and our net debt was $101.6 million, with nothing drawn on our revolving credit facility. This quarter, our Hearthstone Ventures assets under management and fee-paying assets under management remained unchanged at $3.4 billion and $2.8 billion, respectively. With that said, let me turn it back to the operator, who will open the line for questions.

Thank you. We will now be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate a line is in the question queue. You may press star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the start keys. One moment, please, while we poll for questions. Our first question comes from the line of Alan Ratner with Zellman & Associates. Please proceed with your question.

Hey, guys. Good afternoon. Thanks for all the details so far. Appreciate it. You know, obviously, you guys have done a great job of maximizing the profitability and the great part. And maybe I'm reading too much into this, but it sounds like maybe you were hedging the timing of the next land sales both there in Valencia maybe a little bit more than the last quarter or so. And I'm curious, you know, in your thinking on that, you know, obviously there's no need to push sales just for the sake of it. Are you kind of thinking through, like, looking at the home sale trajectory in both of those communities and seeing, you know, the slowdown there and making a decision that it might not make sense to, you know, kind of push lot sales in the near term? Or is this more based off of feedback you're getting from builders where they're more cautious on either price or looking forward to deals? I'm just trying to figure out whether, you know, you're sensing more cautiousness on the builder side or you're trying to, you know, kind of plan for the next phase based on what you're seeing on the home sale front.

Thanks, Alan. Appreciate that question. One of the things that we watch very carefully is home sales and what we have in our builder's hands. But what we also have is a continuing interest in our property, which is quite unique because it's entitled in the markets that it's in. And, you know, for now, the builders are looking at absorptions that kind of support moving forward. But we're also always trying to realize that our most important thing is to really optimize our land value. And we're not prepared to compromise on land value. But if I can help a builder a little bit with some structure, we're prepared to have those conversations. So we're really trying to match things that will help us optimize land value. But builders are still selling in our communities, not as fast as they might have been 12 months ago. But we also think that there will be a turn in that market. Again, I can't predict the timing. But so I think to answer your question is we're trying to balance more than anything optimizing land value. And so we're just watching and working with the builders, but they are engaged.

Got it. That's helpful, Dan. I figured as much, but helpful to hear you to talk through it. Actually, two more quick ones, if I could. The first one is just on the land banking side. As I look at the public builder lot count, it's been on a pretty steady decline over the last five or six quarters. And some of that is fewer acquisitions, but part of that also is walking away from option deals and, in some cases, land bank deals. So I'm curious if you could talk through a little bit what you're seeing on the builder side with your partners with Hearthstone. Are you seeing, you know, an increase in walkaways? Are you seeing builders requesting changes in pricing or terms? And ultimately, how does that affect the financials at Hearthstone? I'll give that one to Kim.

Thanks, Alan. Yeah, there's a lot of interest in that these days. I just want to say that when we looked at Hearthstone, I mean, their history was very strong in this area. They're still seeing good flow from the builders. We're not seeing builders coming back to them generally and asking for changes in terms or anything like that. So it's holding up well. I think that's a statement about their underwriting more than anything else and the nature of the transactions that they engage in. But they're still seeing good flow, and they're not seeing a lot of builders coming back and asking for changes.

Got it. Okay, really helpful. And then the final one for me is, you know, we see across the country, obviously, a huge demand for land for data centers. We've seen some high-profile transactions from builders selling land in other parts of the country. um you know personally admittedly i'm not i'm not totally um familiar with kind of the local municipalities stance on on data centers in your areas of operation but you have you had any conversations related to maybe selling some land or data centers is that being contemplated at all and you know across any of your assets i'm just curious how you're thinking about that as far as potential uh use or demand of land within your communities thank you i'm gonna have mike address that one.

Hi Alan, you know we've got commercial business park uses in each of our three communities and it has been a topic of conversation I would say across the board probably Los Angeles more than others and as you know a lot of the municipalities and many if not most in California are very in tune with that in things that make them difficult to implement, but we are absolutely looking at that with the continuing growing demand of, you know, the need for the data centers. It's absolutely something we continue to look at. They're not easy to execute on. They take a lot of time, but, you know, we're very comfortable in the infrastructure delivery world and understand what it would take to deliver, you know, those types of uses because we've been doing big infrastructure projects in all of these communities, frankly, that are building many cities. So we will continue to look at that, and it could turn out to be an opportunity we pursue, but a little too early to say definitively.

Okay, great. Looking forward to hearing more about that in the future. Thanks a lot.

Thank you. As a reminder, if anyone has any questions, you may press star 1 on your telephone keypad in order to join the queue to answer your questions. And again, we have reached the end of the question and answer session, and I'd like to turn the floor back over to CEO Dan Hedigan for closing remarks.

Thank you. On behalf of our management team, we thank you for joining us on today's call. We look forward to speaking with you next quarter.

And this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.