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Third Avenue Makes Big Cuts to Five Point Holdings (FPH) Position After Disappointing Q3 Results

Fintel Staff

Published: November 10, 2022 4:14 am

Last Updated: November 10, 2022 11:40 am

Fintel reports Third Avenue Management Llc has filed a 13G/A form with the SEC disclosing ownership of 4,817,459 shares of Five Point Holdings (FPH). This represents 6.97% of the company.

In their previous filing dated February 11, 2022 they reported 8,732,674 shares and 12.46% of the company, a decrease in shares of 44.83% and a decrease in total ownership of 5.49% (calculated as current – previous percent ownership).

In their most recent update, Five Point Holdings reported the following highlights:

• Revenues of $15.4 million for the three months ended September 30, 2022 were primarily generated from management services.
• Equity in loss from unconsolidated entities was $4.3 million for the three months ended September 30, 2022. Net loss for the Great Park Venture was $18.3 million. Our share of the net loss from our 37.5% percentage interest, adjusted for basis differences, was $4.5 million. Additionally, we recognized $0.1 million in loss from our 75% interest in the Gateway Commercial Venture and $0.4 million in earnings from our 10% interest in the Valencia Landbank Venture.
• Selling, general, and administrative expenses were $12.0 million for the three months ended September 30, 2022.
• Consolidated net loss for the quarter was $9.5 million. Net loss attributable to noncontrolling interests totaled $5.1 million, resulting in net loss attributable to the Company of $4.4 million. Net loss attributable to noncontrolling interests represents the portion of loss allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income allocated to noncontrolling interests in subsequent periods.

What are other large shareholders doing?

Luxor Capital Group, LP holds 13,863,475 shares representing 20.07% ownership of the company. In it’s prior filing, the firm reported owning 14,066,277 shares, representing a decrease of 1.46%. The firm increased its portfolio allocation in FPH by 38.99% over the last quarter.

Manufacturers Life Insurance Company, The holds 4,899,837 shares representing 7.09% ownership of the company. In it’s prior filing, the firm reported owning 4,955,315 shares, representing a decrease of 1.13%. The firm decreased its portfolio allocation in FPH by 34.02% over the last quarter.

Long Pond Capital, LP holds 4,527,395 shares representing 6.55% ownership of the company. No change in the last quarter.

TAREX – THIRD AVENUE REAL ESTATE VALUE FUND Institutional Class holds 4,250,421 shares representing 6.15% ownership of the company. In it’s prior filing, the firm reported owning 4,413,953 shares, representing a decrease of 3.85%. The firm decreased its portfolio allocation in FPH by 23.93% over the last quarter.

What is the overall institutional sentiment?

There are 113 funds or institutions reporting positions in Five Point Holdings LLC. This is a decrease of 9 owner(s) or 7.38%.

Average portfolio weight of all funds dedicated to Five Point Holdings LLC is 0.2307%, a decrease of 13.9410%. Total shares owned by institutions decreased in the last three months by 1.24% to 59,169,111 shares.

Based on this information, institutional sentiment is bearish.

This article originally appeared on Fintel