Is Five Point (FPH) stock Halal?

Five Point is a real estate development company primarily engaged in the design, development, and management of mixed-use planned communities in coastal California. Its main focus is on creating sustainable and vibrant neighborhoods that integrate residential, commercial, and recreational spaces. The company is known for its landmark communities like Newhall Ranch in Los Angeles County, Great Park Neighborhoods in Irvine, and the San Francisco Shipyard and Candlestick Point in San Francisco. For Muslim investors, though, the most pressing question is simpler: is Five Point a Halal investment?

Is Five Point Shariah compliant?

No. In the October 2026 screening Five Point (FPH) does not pass AAOIFI screening: it fails the interest-bearing investments and interest-bearing debt screens. Property itself is a permissible asset, which is why real estate attracts Halal investors. The screening question for Five Point is how the portfolio is financed and whether rental income flows from impermissible tenants; the debt cap and the 5% income ceiling of AAOIFI Shariah Standard No. 21 carry the verdict.

Does Five Point pass the business activity test?

The activity screen is only part of the picture this month: Five Point currently fails the interest-bearing investments and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. The watch item is the tenant roll: rental income from impermissible businesses counts against the 5% ceiling.

Is Five Point's income Halal?

Yes, within AAOIFI's tolerance. Five Point's income from non-permissible sources stays below 5% of revenue in the October 2026 screening.

Does Five Point meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps, measured against a market capitalisation of $692M (market data as of 1 October 2026): interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has FPH re-screened every month.

Why do other halal screeners show a different verdict for Five Point?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read REITs: Halal Real Estate for Muslim Investors