Five Point Holdings, LLC (FPH): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how a major land developer like Five Point Holdings, LLC (FPH) actually makes its money, especially now that the market is shifting. Forget the old playbook; FPH is clearly pivoting toward more stable, recurring revenue through its land banking platform, Hearthstone. Honestly, seeing their $476.1 million liquidity as of September 2025 gives you a solid foundation, but the real story is how they convert massive entitled land assets into cash-like that $257.7 million in Great Park land sales last quarter, plus $70.1 million from unconsolidated ventures. I've mapped out the entire nine-block structure below, showing you exactly where the risk and the upside are in their current strategy. Dive in to see the precise levers driving their expected $177.6 million net income this year.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Five Point Holdings, LLC centers on strategic alliances for land acquisition, capital deployment, and entitlement execution across its major California developments.

National and regional homebuilders buying entitled land represent the primary customer base for Five Point Holdings, LLC's core land sales business. These transactions provide immediate revenue and fund ongoing development activities. For example, during the third quarter of 2025, the Great Park Venture sold 326 home sites for an aggregate purchase price of $257.7 million.

This follows significant activity earlier in the year; the Great Park Venture closed on 325 homesites on 23.6 acres for $278.9 million in the first quarter of 2025. Builder sales at the Great Park Neighborhoods totaled 187 homes in Q3 2025. At Valencia, builders reported 50 home sales in the same quarter, though Five Point Holdings, LLC is waiting to sell more land there, anticipating better pricing.

The Great Park Venture structure itself involves key financial partners. Five Point Holdings, LLC recognizes its share of the venture's performance based on its 37.5% percentage interest. In the second quarter of 2025, net income attributable to noncontrolling interests, which includes allocations to these partners, totaled $5.3 million.

The strategic alliance with Hearthstone Venture partners for land banking and capital solutions was formalized in mid-2025. Five Point Holdings, LLC acquired a 75% controlling interest in the new entity, Hearthstone Residential Holdings, LLC, for $56.25 million. The remaining 25% ownership stake is held by entities affiliated with Mark Porath, Hearthstone's Founder and Chief Executive Officer.

This partnership is designed to scale Hearthstone's platform, which has historically managed significant capital.

The relationship with Municipal and government entities for large-scale entitlements underpins the entire development pipeline. These partnerships grant the legal rights to build. For instance, the Great Park Neighborhoods in Irvine spans approximately 2,100 acres and is currently entitled to hold 10,500 homes. Separately, the Valencia community in Los Angeles County is planned on approximately 15,000 acres.

Five Point Holdings, LLC also engages with local government on land exchanges to optimize development. In a recent action involving the Great Park Board, a land swap was approved where Five Point Holdings, LLC was set to receive five acres for affordable housing development in exchange for 13.8 acres given to the city.

Key partnership activities include:

• - Securing land sales to national and regional homebuilders.
• - Partnering with Hearthstone Residential Holdings, LLC for capital solutions.
• - Sharing equity and distributions with noncontrolling interest partners in joint ventures like the Great Park Venture.
• - Collaborating with city and county governments for entitlement approvals and land use planning.

Finance: draft 13-week cash view by Friday.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Key Activities

Entitlement and master-planning of large California land assets.

• Great Park Neighborhoods is currently entitled for 10,500 homes.
• Over 7,000 homes and 9,000 home sites have sold at Great Park Neighborhoods since its opening.
• Valencia is planned across approximately 15,000 acres, with 10,000 acres devoted to open space.
• Advancing entitlements for the next phase at Valencia, expected to add 8,900 homesites and 183 acres of commercial land.

Land development and infrastructure construction.

The SF Shipyard project has experienced development cost overruns and construction delays.

Strategic land sales to homebuilders and commercial developers.

Managing the Hearthstone land banking and advisory platform.

Five Point Holdings acquired 75% of the Hearthstone platform for an aggregate purchase price of $56.25 million (with an alternative report citing $59.25 million for a 75% stake). Hearthstone manages institutional capital in residential for-sale housing.

• Hearthstone has funded more than 173,000 homes and lots across approximately 750 transactions.
• Total investments managed by Hearthstone are approximately $21 billion.
• Assets Under Management (AUM) are around ~$3 billion, with active discussions for $300 million+ new capital as of Q3 2025.
• Hearthstone contributed $3.4 million to management services revenue for two months in Q3 2025.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Key Resources

You're looking at the core assets underpinning Five Point Holdings, LLC's development platform as of late 2025. These aren't just dirt and deeds; they represent entitled capacity in some of the most supply-constrained markets in the country. Honestly, the scale of the entitled land portfolio is the primary barrier to entry for competitors.

The financial foundation supporting these long-term plays is solid. As of September 30, 2025, Five Point Holdings, LLC maintained a strong liquidity position totaling $476.1 million. This liquidity was comprised of cash and cash equivalents amounting to $351.1 million, backed by $125.0 million in borrowing availability under the unsecured revolving credit facility.

A major strategic move in the third quarter of 2025 was securing control over a complementary business line. Five Point Holdings, LLC closed the acquisition of a 75% controlling interest in the new land banking venture, Hearthstone Residential Holdings, LLC, for $57.6 million. This platform manages institutional capital and brings its own established scale, with Hearthstone managing over $2.6 billion in assets across approximately 750 transactions.

The intellectual property isn't a patent, but rather the deep expertise in navigating the entitlement process for massive, complex master-planned communities in California. This know-how allows Five Point Holdings, LLC to unlock value from its raw acreage. For example, entitlements are advancing for the next phase of Valencia, which is expected to add 8,900 homesites and 183 acres of commercial land.

Here's a quick look at the physical land inventory that forms the basis of the development pipeline:

• Massive, entitled land inventory in coastal California (Valencia, Great Park).
• Strong liquidity position of $476.1 million as of September 30, 2025.
• Intellectual property in complex master-planned community design.
• 75% controlling interest in the Hearthstone land banking platform.

To give you a better sense of the scale of the physical assets, look at the acreage breakdown across the key projects. This inventory represents the future revenue base for the next decade, defintely.

The recurring revenue stream from the Hearthstone acquisition is also a key resource now, providing a buffer against the cyclical nature of large land sales. Management services revenue, for instance, totaled $32.3 million for the nine months ended September 30, 2025.

The value of the land is intrinsically tied to its entitled status and location within these three dynamic markets:

• Los Angeles County
• San Francisco County
• Orange County

Finance: draft 13-week cash view by Friday.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Five Point Holdings, LLC (FPH) brings to the table in late 2025, focusing strictly on the quantifiable value they deliver.

De-risked, fully entitled land in supply-constrained California markets

• Total planned residential homes across communities: up to approximately 40,000 homes.
• Total planned commercial space: up to approximately 23 million square feet.
• Valencia community: 15,000 acres of landscape, with 21,500 homes planned over 20-30 years.
• Great Park Neighborhoods: Approximately 2,100 acres, planning to build 10,556 homes.
• Great Park Neighborhoods affordable housing component: 1,056 units planned.

The company operates in Orange County, Los Angeles County, and San Francisco County.

Capital solutions for homebuilders via the land banking model

Five Point Holdings, LLC is scaling capital solutions through the acquisition of a controlling stake in Hearthstone, Inc.

• Five Point acquired a 75% stake in Hearthstone, Inc. for $56.25 million.
• Hearthstone's platform has funded 173,000+ homes across 750 transactions since 1992.
• Hearthstone's Asset Under Management (AUM) was approximately $2.6 billion.

Master-planned, mixed-use communities with integrated amenities

These communities integrate residential, commercial, retail, and public amenities at scale.

• Projected economic activity upon full buildout: $54.7 billion.
• Projected jobs created during construction: 288,000.
• Valencia community open space dedication: 10,000 acres.
• Valencia planned affordable housing units: 6,000 units.

Long-term value creation through thoughtful placemaking and scale

The company's financial positioning supports this long-term strategy, with management guiding for 2025 results consistent with the prior year.

The full-year 2025 consolidated net income guidance is anticipated to be consistent with the 2024 figure of approximately $177.6 million.

The company refinanced $523.5 million in senior notes to an 8% coupon, which is expected to save over $20 million annually in cash interest.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Customer Relationships

You're looking at how Five Point Holdings, LLC (FPH) manages its most critical external relationships-the builders who buy the land and the institutional partners who fund the development. This isn't a high-volume, low-touch model; it's built on deep, long-term transactional and capital relationships.

Transactional, high-value land sales to a select group of builders.

The core relationship is the direct sale of entitled land parcels to homebuilders. These are high-value, discrete transactions that drive immediate consolidated revenue and net income. You see the cadence of these sales directly impacting quarterly results. For instance, in the third quarter of 2025, the Great Park Venture executed a sale of 326 homesites for an aggregate base purchase price of $257.7 million. This is the transactional engine at work.

Builder activity, which reflects the health of these relationships, shows some fluctuation based on market conditions. In the first quarter of 2025, builders sold 233 homes in the Great Park communities, but that pace slowed to 112 homes in the second quarter of 2025. Still, FPH is actively securing future business; they have contracted sales for nine new residential programs, totaling 572 home sites, being sold to six builders, with closings anticipated in late Q3 or early Q4 2025. The pricing power remains strong, with one recent sale generating an average of approximately $11.8 million per acre.

Here's a snapshot of the recent transactional flow with builders:

Strategic, long-term joint venture partnerships with institutional capital.

A significant portion of FPH's value is realized through unconsolidated joint ventures, which means deep, strategic relationships with institutional capital partners. The Great Park Venture is the prime example, where FPH holds a 37.5% non-controlling percentage interest. These partnerships allow FPH to share development risk while capturing significant equity earnings. For instance, in Q3 2025, FPH's share of the Great Park Venture net income was $69.5 million, derived from the venture's total net income of $201.6 million for that quarter. In the first quarter of 2025, the contribution from unconsolidated entities was $70.9 million.

The relationship model is evolving, too. FPH recently acquired a 75% controlling interest in the newly formed Hearthstone Venture, which is designed to expand FPH's role as a manager of institutional capital for land-light strategies. Hearthstone itself previously managed over $2.6 billion in assets. This move solidifies FPH's transition into a capital allocator, complementing its land development expertise.

Dedicated management services for unconsolidated ventures.

FPH acts as the dedicated manager for these large, unconsolidated entities, generating fee and incentive-based revenue that supports consolidated results. Consolidated revenues in Q1 2025 were $13.2 million, primarily generated from these management services. The incentive component is substantial; in the second quarter of 2025, FPH added $7 million in management services revenue, with $30.6 million associated with incentive compensation specifically from the Great Park Venture. To give you a sense of the scale of these incentive structures, the Great Park Venture distributions and incentive compensation payments totaled $231.0 million in the fourth quarter of 2024. These services are a key relationship component, as they monetize FPH's operational expertise directly from the ventures it helps manage.

The relationship structure is a blend of direct sales, profit-sharing in JVs, and management fees. Finance: draft 13-week cash view by Friday.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Channels

You're looking at how Five Point Holdings, LLC moves its entitled land inventory to the market as of late 2025. The channels are a mix of direct sales, partnership structures, and a new platform for capital solutions.

The primary channel for immediate revenue generation remains the direct sale of land parcels, heavily concentrated in the Great Park Venture structure.

Direct sales team for land parcel transactions

• Closed land sales to 4 builders in Q3 2025.
• Total homesites sold in Q3 2025: 326.
• Total acreage sold in Q3 2025: 26.6 acres.
• Individual sales prices ranged from $8.5 million an acre to $11 million an acre in Q3 2025.

The financial results from these direct land sales flow through the unconsolidated entity structure.

Unconsolidated entities, like the Great Park Venture

This structure is where the majority of the financial impact is realized, given the 37.5% Percentage Interest Five Point Holdings holds in the Great Park Venture. The consolidated revenue was only $13.5 million for Q3 2025, while equity in earnings from unconsolidated entities was $70.1 million for the same period.

Hearthstone platform for land banking and advisory services

Five Point Holdings acquired a controlling 75% interest in Hearthstone Residential Holdings, LLC in September 2025 for $57.6 million. Historically, Hearthstone has managed over $2.6 billion in assets and funded more than 173,000 homes and lots across approximately 750 transactions, totaling about $21 billion in investments.

The platform is designed to create new recurring fee-based revenue streams, though it is not expected to materially contribute to Five Point Holdings' results in 2025.

Commercial brokerage for office and retail land sales

The Great Park Neighborhoods development is entitled for millions of square feet of commercial space across its markets in Los Angeles County, San Francisco County, and Orange County. Specific Q3 2025 commercial land sales figures via brokerage channels were not detailed in the latest reports.

Builder home sales, which follow land sales, were:

• Great Park Neighborhoods: 187 homes sold in Q3 2025.
• Valencia: 50 homes sold in Q3 2025.

Finance: draft 13-week cash view by Friday.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Five Point Holdings, LLC (FPH) as they execute on their massive California land bank. Honestly, the customer segments aren't just the people buying the final homes; they are the sophisticated entities that buy the entitled land in bulk.

The primary focus for land sales remains the homebuilders, who are the direct purchasers of the finished lots ready for vertical construction. Five Point Holdings, LLC (FPH) relies heavily on these relationships, especially in the supply-constrained coastal markets.

The next critical segment involves institutional capital providers, which Five Point Holdings, LLC (FPH) engages with through unconsolidated joint ventures. This structure allows Five Point Holdings, LLC (FPH) to share development risk and bring massive projects to scale.

• Five Point Holdings, LLC (FPH) holds a 37.5% Percentage Interest in the Great Park Venture.
• The Great Park Venture generated net income of $201.6 million in Q3 2025, with Five Point Holdings, LLC (FPH)'s share being $69.5 million.
• Five Point Holdings, LLC (FPH) acquired a controlling 75% interest in the Hearthstone Residential Holdings, LLC venture in June 2025.
• The Hearthstone platform manages over $2.6 billion in assets and has funded over 173,000 homes historically.
• Recurring management fees are expected to reach $30 million annually by 2026.

For non-residential parcels, commercial and retail developers are targeted, though these sales can be more lumpy. You see this in the Gateway Campus sale, where the remaining interests were sold to City of Hope in late 2024. To give you a sense of the scale for commercial land, a retail land sale in Q3 2024 involved 12.8 acres for $25.4 million. Looking ahead, the Valencia development is planned to deliver approximately 183 net acres of commercial land, including industrial uses.

Finally, the ultimate customer segment is the future resident and the businesses that will occupy the space. These are the end-users whose demand underpins the entire land sale strategy. Five Point Holdings, LLC (FPH) is planning for significant population density within its entitled areas. For instance, the Great Park Neighborhoods is planned to build up to 10,556 homes, which includes 1,056 affordable housing units. The Valencia community is planned to integrate homes, offices, retail, and entertainment options across its approximately 15,000 acres. If onboarding takes 14+ days, churn risk rises, but for these segments, the risk is more about entitlement timing.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Cost Structure

You're looking at the major drains on Five Point Holdings, LLC's capital, which are heavily weighted toward land acquisition and initial site work. This is typical for a master-planned community developer; the upfront investment in raw land and getting the horizontal infrastructure in place is where the bulk of the money goes before you even sell a single lot to a homebuilder.

Here's a look at some of the concrete costs we saw in the first half of 2025, which drive the structure of Five Point Holdings, LLC's operations:

Land development and infrastructure costs represent the major capital outlay for Five Point Holdings, LLC. This is the cost to prepare the ground for vertical construction. For instance, in the second quarter of 2025, we saw $32 million specifically attributed to development costs at Valencia. Also, remember the work in San Francisco; in Q1 2025, the company was working on engineering for the next phase of infrastructure at Candlestick and The Shipyard, anticipating starting construction early in 2026. That engineering and future construction is a significant, ongoing capital commitment.

Selling, general, and administrative (SG&A) expenses, which cover the day-to-day running of the corporate structure, were reported at $15.6 million for the three months ended June 30, 2025. Five Point Holdings, LLC is focused on managing overhead as they grow, aiming for an efficient operating structure.

Interest expense on debt is a fixed drain until the debt is retired. In Q2 2025, the interest paid on senior notes alone amounted to $27.5 million. You are right to look at refinancing; the company priced a $450.0 million offering of senior notes due 2030 at an 8.000% interest rate in September 2025, intending to use the proceeds to redeem the outstanding 10.500% notes due 2028 and the 7.875% notes due 2025. If executed successfully, this move is definitely expected to lower the annual interest burden significantly, potentially saving over $20 million annually compared to the higher-rate debt it replaces.

Acquisition costs for strategic platforms are another key outlay. The transaction to acquire a controlling 75% stake in the Hearthstone land banking and residential advisory platform was reported with a total cost of $57.6 million, though other reports cite the cash component at $56.25 million. This strategic spend is designed to introduce new, potentially recurring revenue streams, shifting some cost focus toward platform integration.

Key cost drivers include:

• Land preparation for horizontal development.
• Corporate overhead reflected in SG&A.
• Debt servicing costs, actively being managed via refinancing.
• Strategic platform acquisitions like Hearthstone.

Finance: draft 13-week cash view by Friday.

Five Point Holdings, LLC (FPH) - Canvas Business Model: Revenue Streams

You're looking at the core ways Five Point Holdings, LLC (FPH) brings in cash, which is heavily weighted toward land sales but increasingly supported by fee-based income streams as of late 2025.

The primary revenue drivers for Five Point Holdings, LLC (FPH) are centered around the monetization of its entitled land inventory, particularly within its master-planned communities. These streams are clearly delineated in their recent financial reporting.

Here is a breakdown of the key revenue components:

• - Residential and commercial land sales, exemplified by the Q3 2025 Great Park land sales totaling $257.7 million.
• - Equity in earnings from unconsolidated entities, which contributed $70.1 million in Q3 2025.
• - Management services and incentive compensation fee income, which is growing with new ventures like Hearthstone Residential Holdings.
• - Projected 2025 consolidated net income is expected to be consistent with 2024's record of $177.6 million.

To give you a clearer picture of the Q3 2025 performance, which drove much of the year-to-date results, look at this snapshot:

The land sales component is highly transactional, relying on closing deals with homebuilders. For instance, the Q3 2025 Great Park sale involved 326 homesites to four builders across 26.6 acres. This activity directly feeds into the equity earnings stream from the Great Park Venture, which generated $201.6 million in net income in Q3 2025 alone.

The fee income is becoming a more structural part of the model. Management services revenue for the first nine months of 2025 reached $32.3 million. This includes specific incentive compensation:

• - Incentive compensation from Great Park Venture: $18.3 million (Nine Months YTD)
• - Fee income from Hearthstone operations: $3.4 million (Nine Months YTD)

This diversification is strategic, especially with the recent acquisition of a 75% interest in Hearthstone Residential Holdings, LLC, for $57.6 million, which is intended to supplement recurring fee-based revenue streams. The company is clearly positioning itself to generate steady income even when large land sales slow down, aiming for full-year 2025 net income near 2024's $177.6 million.

Finance: draft 13-week cash view by Friday.