v3.26.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company’s reportable segments consist of:
• Valencia—includes the community of Valencia being developed in northern Los Angeles County, California. The Valencia segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers.
• San Francisco—includes the Candlestick and The San Francisco Shipyard communities located on bayfront property in the City of San Francisco, California. The San Francisco segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers.
• Great Park—includes the Great Park Neighborhoods being developed adjacent to and around the Orange County Great Park, a metropolitan park under construction in Orange County, California. This segment also includes management services provided by the Management Company to the Great Park Venture, the owner of the Great Park Neighborhoods. As of September 30, 2026, the Company had a 37.5% percentage interest in the Great Park Venture and accounted for the investment under the equity method. The reported segment information for the Great Park segment includes the results of 100% of the Great Park Venture at the historical basis of the venture, which did not apply push down accounting at acquisition date. The Great Park segment derives revenues at the Great Park Neighborhoods from sales of residential and commercial land sites to homebuilders, commercial developers and commercial buyers and management services provided by the Company to the Great Park Venture.
• Hearthstone—includes the Hearthstone Venture residential asset management platform focused on managing residential land banking programs across multiple U.S. markets. The Hearthstone segment derives revenues from management fees.
Segment operating results and reconciliations to the Company’s consolidated balances for the three and nine months ended September 30, 2026 and 2025 are as follows (in thousands):
Three Months Ended September 30, 2026
ValenciaSan FranciscoGreat ParkHearthstoneTotal reportable segments
Removal of Great Park Venture(1)
Add investment in Great Park Venture
Corporate and unallocated(2)
Total Consolidated
Revenues$493 $190 $7,916 $6,522 $15,121 $(506)$— $— $14,615 
Less:
Cost of land sales— — — — — — — — — 
Management services— — 1,618 4,024 5,642 — — — 5,642 
Selling, general, and administrative1,680 1,121 2,043 — 4,844 (2,043)— 9,736 12,537 
Management fees-related party— — 7,519 — 7,519 (7,519)— — — 
Other segment items(3)
1,424 — (1,967)(489)(1,032)1,967 2,658 (2,767)826 
Segment profit (loss) / Net income (loss)(2,611)(931)(1,297)2,987 (1,852)7,089 (2,658)(6,969)(4,390)
Other segment disclosures:
Depreciation and amortization13 — 338 488 839 — — 56 895 
Interest income— — 1,967 33 2,000 (1,967)— 2,763 2,796 
Expenditures for long-lived assets, net(4)
27,386 11,407 16,116 — 54,909 (16,116)— — 38,793 
(1) Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of its historical basis, but are not included in the Company’s consolidated results as the Company accounts for its investment in the venture using the equity method of accounting.
(2) Corporate and unallocated activity is primarily comprised of corporate general and administrative expenses, interest income and income tax benefit.
(3) Other segment items for each reportable segment include:
• Valencia—operating properties expenses, pension costs and equity in earnings from unconsolidated entities.
• Great Park—interest income.
• Hearthstone—interest income and equity in earnings from Hearthstone Funds.
(4) Expenditures for long-lived assets are net of inventory cost reimbursements and other inventory cost recoveries and include noncash project accruals and capitalized interest. For the three months ended September 30, 2026, Valencia’s net expenditures include $9.4 million, San Francisco’s net expenditures include $0.6 million and Great Park Venture’s net expenditures include $14.3 million in inventory cost reimbursements and recoveries received.
Three Months Ended September 30, 2025
ValenciaSan FranciscoGreat ParkHearthstoneTotal reportable segments
Removal of Great Park Venture(1)
Add investment in Great Park Venture
Corporate and unallocated(2)
Total Consolidated
Revenues$486 $176 $282,504 $3,394 $286,560 $(273,072)$— $— $13,488 
Less:— 
Cost of land sales— — 64,883 — 64,883 (64,883)— — — 
Management services— — 2,714 2,741 5,455 — — — 5,455 
Selling, general, and administrative2,230 1,156 2,532 — 5,918 (2,532)— 10,908 14,294 
Management fees-related party— — 6,138 — 6,138 (6,138)— — — 
Other segment items(3)
1,623 (3)(2,115)(181)(676)2,115 (69,548)6,134 (61,975)
Segment profit (loss) / Net income (loss)(3,367)(977)208,352 834 204,842 (201,634)69,548 (17,042)55,714 
Other segment disclosures:
Depreciation and amortization13 — 813 326 1,152 — — 56 1,208 
Interest income— 3 2,115 7 2,125 (2,115)— 4,474 4,484 
Expenditures for long-lived assets, net(4)
33,174 14,582 26,970 — 74,726 (26,970)— — 47,756 
(1) Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of its historical basis, but are not included in the Company’s consolidated results as the Company accounts for its investment in the venture using the equity method of accounting.
(2) Corporate and unallocated activity is primarily comprised of corporate general and administrative expenses, interest income, income tax provision of $9.2 million, loss on debt extinguishment and equity in earnings from the Gateway Commercial Venture.
(3) Other segment items for each reportable segment include:
• Valencia—operating properties expenses, pension costs and equity in earnings from unconsolidated entities.
• San Francisco—interest income.
• Great Park—interest income.
• Hearthstone—interest income and equity in earnings from Hearthstone Funds.
(4) Expenditures for long-lived assets are net of inventory cost reimbursements and other inventory cost recoveries and include noncash project accruals and capitalized interest. For the three months ended September 30, 2025, San Francisco’s net expenditures include $0.5 million and Great Park Venture’s net expenditures include $8.7 million in inventory cost reimbursements and recoveries received.
Nine Months Ended September 30, 2026
ValenciaSan FranciscoGreat ParkHearthstoneTotal reportable segments
Removal of Great Park Venture(1)
Add investment in Great Park Venture
Corporate and unallocated(2)
Total Consolidated
Revenues$(77)$547 $189,182 $18,230 $207,882 $(165,784)$— $— $42,098 
Less:
Cost of land sales— — 37,622 — 37,622 (37,622)— — — 
Management services— — 6,080 12,043 18,123 — — — 18,123 
Selling, general, and administrative6,532 4,108 5,605 — 16,245 (5,605)— 30,940 41,580 
Management fees-related party— — 23,665 — 23,665 (23,665)— — — 
Other segment items(3)
3,446 (2)(5,456)(1,613)(3,625)5,456 (35,956)(4,054)(38,179)
Segment profit (loss) / Net income (loss)(10,055)(3,559)121,666 7,800 115,852 (104,348)35,956 (26,886)20,574 
Other segment disclosures:
Depreciation and amortization38 — 1,223 1,465 2,726 — — 168 2,894 
Interest income— 2 5,456 66 5,524 (5,456)— 8,654 8,722 
Expenditures for long-lived assets(4)
86,989 33,050 33,961 — 154,000 (33,961)— 6 120,045 
(1) Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of its historical basis, but are not included in the Company’s consolidated results as the Company accounts for its investment in the venture using the equity method of accounting.
(2) Corporate and unallocated activity is primarily comprised of corporate general and administrative expenses, interest income, income tax provision of $5.3 million and equity in earnings from the Gateway Commercial Venture.
(3) Other segment items for each reportable segment include:
• Valencia—operating properties expenses, pension costs, miscellaneous other income and equity in earnings from unconsolidated entities.
• San Francisco—interest income.
• Great Park—interest income.
• Hearthstone—interest income and equity in earnings from Hearthstone Funds.
(4) Expenditures for long-lived assets are net of inventory cost reimbursements and other inventory cost recoveries and include noncash project accruals and capitalized interest. For the nine months ended September 30, 2026, Valencia’s net expenditures include $10.8 million, San Francisco’s net expenditures include $1.1 million and Great Park Venture’s net expenditures include $32.6 million in inventory cost reimbursements and recoveries received.
Nine Months Ended September 30, 2025
ValenciaSan FranciscoGreat ParkHearthstoneTotal reportable segments
Removal of Great Park Venture(1)
Add investment in Great Park Venture
Corporate and unallocated(2)
Total Consolidated
Revenues$1,260 $522 $659,659 $3,394 $664,835 $(630,717)$— $— $34,118 
Less:
Cost of land sales— — 151,121 — 151,121 (151,121)— — — 
Management services— — 8,105 2,741 10,846 — — — 10,846 
Selling, general, and administrative8,629 3,534 7,073 — 19,236 (7,073)— 32,482 44,645 
Management fees-related party— — 21,749 — 21,749 (21,749)— — — 
Other segment items(3)
3,662 (20)(5,517)(181)(2,056)5,517 (157,094)7,384 (146,249)
Segment profit (loss) / Net income (loss)(11,031)(2,992)477,128 834 463,939 (456,291)157,094 (39,866)124,876 
Other segment disclosures:
Depreciation and amortization38 — 2,520 326 2,884 — — 180 3,064 
Interest income— 20 5,517 7 5,544 (5,517)— 13,474 13,501 
Expenditures for long-lived assets(4)
103,566 46,805 62,933 — 213,304 (62,933)— — 150,371 
(1) Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of its historical basis, but are not included in the Company’s consolidated results as the Company accounts for its investment in the venture using the equity method of accounting.
(2) Corporate and unallocated activity is primarily comprised of corporate general and administrative expenses, interest income, income tax provision of $20.1 million, loss on debt extinguishment and equity in earnings from the Gateway Commercial Venture.
(3) Other segment items for each reportable segment include:
• Valencia—operating properties expenses, pension costs, miscellaneous other income and equity in earnings from unconsolidated entities.
• San Francisco—interest income.
• Great Park—interest income.
• Hearthstone—interest income and equity in earnings from Hearthstone Funds.
(4) Expenditures for long-lived assets are net of inventory cost reimbursements and other inventory cost recoveries and include noncash project accruals and capitalized interest. For the nine months ended September 30, 2025, Valencia’s net expenditures include $1.8 million, San Francisco’s net expenditures include $1.1 million and Great Park Venture’s net expenditures include $37.7 million in inventory cost reimbursements and recoveries received.
Segment assets and reconciliations to the Company’s consolidated balances at September 30, 2026 and December 31, 2025 are as follows (in thousands):
September 30, 2026December 31, 2025
Segment assetsInventory assetsSegment assetsInventory assets
Valencia$1,085,665 $1,050,439 $1,000,295 $963,661 
San Francisco1,513,780 1,512,667 1,479,713 1,479,618 
Great Park373,250 149,643 449,637 153,117 
Hearthstone128,874 — 122,081 — 
Total reportable segments3,101,569 2,712,749 3,051,726 2,596,396 
Removal of Great Park Venture(1)
(300,605)(149,643)(368,781)(153,117)
Add investment in Great Park Venture70,723 — 100,953 — 
Corporate and unallocated(2)
355,836 — 465,105 — 
Total Consolidated$3,227,523 $2,563,106 $3,249,003 $2,443,279 
(1) Represents the removal of the Great Park Venture balances, which are included in the Great Park segment balances at 100% of its historical basis, but are not included in the Company’s balances as the Company accounts for its investment in the venture using the equity method of accounting.
(2) Corporate and unallocated assets consist of cash and cash equivalents, investment in the Gateway Commercial Venture, leasehold improvements, ROU assets, prepaid expenses and deferred financing costs.