Home Hedge Funds Will Five Point Holdings, LLC (FPH) Benefit from the Exchange Offer?

Will Five Point Holdings, LLC (FPH) Benefit from the Exchange Offer?


Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the calendar year, the fund returned +23.27% (after fees) versus +10.85% for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Third Avenue Real Estate Value Fund featured stocks like Five Point Holdings, LLC (NYSE:FPH) in the fourth quarter 2023 investor letter. Headquartered in Irvine, California, Five Point Holdings, LLC (NYSE:FPH) owns and develops mixed-use and planned communities. On March 14, 2024, Five Point Holdings, LLC (NYSE:FPH) stock closed at $3.14 per share. One-month return of Five Point Holdings, LLC (NYSE:FPH) was -1.26%, and its shares gained 49.52% of their value over the last 52 weeks. Five Point Holdings, LLC (NYSE:FPH) has a market capitalization of $465.706 million.

Third Avenue Real Estate Value Fund stated the following regarding Five Point Holdings, LLC (NYSE:FPH) in its fourth quarter 2023 investor letter:

“Furthermore, Five Point Holdings, LLC (NYSE:FPH) (a U.S.-based land development company) launched an exchange offer for its Senior Unsecured Notes, whereby it proposed to pay down $100 million of principal, while also extending the maturity date on the remaining amount to 2028 and introducing an optional amortization feature. The offer was accepted by more than 99.0% of the holders, thus allowing the company to move forward with the well-designed transaction that will further reduce debt and grant Five Point more flexibility as it seeks to unlock the value embedded in its incredibly scarce land positions—an amount that seems much more significant than currently implied by the prevailing price for its common stock, in Fund Management’s view.

The Fund participated in several of these developments, primarily by (i) increasing its position in Ingenia Communities alongside the Sun Communities offering and (ii) agreeing to engage in the Five Point exchange offer, which is expected to close in January 2024. The Fund also increased its position in Sun Communities during the period and trimmed back certain holdings for portfolio management purposes.”

A birdseye view of a vibrant neighborhood, showcasing the diversity of residents living in a mixed-use community.

Five Point Holdings, LLC (NYSE:FPH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Five Point Holdings, LLC (NYSE:FPH) was held by 14 hedge fund portfolios, compared to 14 in the previous quarter, according to our database.

We discussed Five Point Holdings, LLC (NYSE:FPH) in another article and shared the list of high growth penny stocks that are profitable. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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