Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q1 2024 Earnings Presentation
16 slides from Green Brick Partners's earnings presentation, May 2, 2024
Slide 1: Investor Presentation 2024 First Quarter
INVESTOR PRESENTATION 2024 First Quarter
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning m
Slide 3: Management Presenters
Management Presenters Jim Brickman Jed Dolson Rick Costello CHIEF EXECUTIVE OFFICER PRESIDENT AND CHIEF CHIEF FINANCIAL OFFICER AND CO-FOUNDER OPERATING OFFICER 3
Slide 4: Industry-Leading Gross Margins
Industry-Leading Gross Margins Green Brick maintained the best homebuilding gross margins amongst our peers Gross Margin Percentage (Most Recently Reported Quarter) 33.4% 27.8% 26.8% 26.8% 26.4% 26.4% 29.6% 23.5% 22.5% 23.1% 27.6% 22.1% 25.8% 25.1% 24.5% 24.0% 23.8% 23.4% 23.2% 23.0% 21.8% 21.5% 21.
Slide 5: Single-Family Inventory Remains Low
Single-Family Inventory Remains Low Existing single-family home inventory remains near historical lows across the country. 5
Slide 6: Persistent Lock-In Effect
Persistent Lock-In Effect Approximately 60% of mortgages have an interest rate below 4%, and approximately 80% have an interest rate below 5% Percent of Mortgages Outstanding By Interest Rate 36% 22% 19% 13% 10% <3% 3-4% 4-5% 5-6% 6%+ Source: FHFA. Data as of 4Q23. 6
Slide 7: Millennials Entering Prime Home Buying Age
Millennials Entering Prime Home Buying Age With the 35-44 year-old demographic considered the most active homebuyer, growth of this buyer segment supports future strong demand Population Of 35-44 Year-Olds In The U.S. Based On Ten-Year Trailing Birth Rates Population segment growth is expected to be
Slide 8: Strategic Advantages
Strategic Advantages LTM Net Sales Orders YoY Change We believe we are well positioned to capture future demand and increase market (Four Most Recently Reported Quarters) share. 54% • Footprint in two of the best markets of DFW and Atlanta o Demographic shift, job creation, and in-migration provide
Slide 9: Highlights – Q1 2024
Highlights – Q1 2024 • Net new home orders were up 0.4% year-over-year to 1Q24 1Q23 Change 1,071, the second highest quarterly sales order in company history and up 58% sequentially. Absorption rate per Net new home orders 1,071 1,067 0.4% average active selling community remained robust at 11.4 per
Slide 10: Business Priorities
Business Priorities Cancellation Rate (Most Recently Reported Quarter) 17% 15% • Manage sales pace 14% 14% o Cancellation rate reached record low level of 4.1% in 1Q24, 13% 13% also the lowest among public homebuilders. 11% o Incentives were down each month during 1Q24 and dropped to 3.8% in March 2
Slide 11: Dallas-Fort Worth – One Of Leading Job Growth Markets in the US
Dallas-Fort Worth – One Of Leading Job Growth Markets in the US Dallas-Fort Worth, our largest market, and Houston ranked among the top of the nation’s 12 largest metropolitan statistical areas in terms of job growth as of February 2024, with a combined 155,000 new non-farm payroll employment added
Slide 12: Expected Lot Deliveries In 2024 – Dallas-Fort Worth
Expected Lot Deliveries In 2024 – Dallas-Fort Worth Majority of our DFW lots are being delivered in infill and adjacent “desirable areas” Lots Delivered / To Be Delivered in 2024 12
Slide 13: Expected Lot Deliveries In 2024 – Atlanta
Expected Lot Deliveries In 2024 – Atlanta Majority of our Atlanta lots are being delivered in infill and adjacent “desirable areas” Lots Delivered / To Be Delivered in 2024 13
Slide 14: Appendix
INVESTOR PRESENTATION Appendix
Slide 15: Appendix: Net Debt To Total Capitalization – 3/31/24
Appendix: Net Debt To Total Capitalization – 3/31/24 Less: Cash and Gross cash Net equivalents Total debt, net of debt issuance costs $309,156 $185,897 $123,259 Total Green Brick Partners, Inc. stockholders’ equity $1,383,327 $0 $1,383,327 Total capitalization $1,692,483 $185,897 $1,506,586 Debt to
Slide 16: Appendix: Net Income Return on Avg. GAAP Common Equity
Appendix: Net Income Return on Avg. GAAP Common Equity YTD 2024 Dollars in Thousands Annualized Net Income Applicable To Common Shareholders $330,328 1 GRBK Common Equity Beginning $1,253,101 GRBK Common Equity Ending $1,335,724 GRBK Common Equity Average $1,294,413 Net Income Return on Avg GAAP Com