Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Investor Day (November 2014)
43 slides from Tri Pointe Homes's investor day presentation, Nov 18, 2014
Slide 1: 2014 Investor Day – November 18, 2014
2014 Investor Day – November 18, 2014 Maracay Homes – Pardee Homes – Quadrant Homes – Trendmaker Homes – TRI Pointe Homes – Winchester Homes Exhibit 99.1
Slide 2: Forward Looking Statements
Forward Looking Statements Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and est
Slide 3: Legacy TRI Pointe Homes – The Beginning
Legacy TRI Pointe Homes – The Beginning 2012 2011 2009 2010 2013 2014 Jan. 2013 TPH goes public (1st Homebuilder IPO since 2004) July 2014 Completed $2.8 bn WRECO transaction Apr. 2009 TRI Pointe was established Jul. - Oct. 2009 Began fee-building projects with The Irvine Company and Resmark Capital
Slide 4: TPH / WRECO Transaction July 2014
TPH / WRECO Transaction July 2014 In November 2013, TRI Pointe Homes (“TRI Pointe”) and Weyerhaeuser Company (“Weyerhaeuser”) entered into a definitive agreement pursuant to which Weyerhaeuser Real Estate Company (“WRECO”) was combined with TRI Pointe in a “Reverse Morris Trust” transaction TRI Poin
Slide 5: Best-in-Class Executive Leadership Team
Best-in-Class Executive Leadership Team • Chairman and CEO of Starwood Capital Group since 1991 • Former Chairman and CEO of Starwood Hotels & Resorts • Current Chairman and CEO of Starwood Property Trust, Inc. Barry S. Sternlicht Chairman of the Board Thomas Mitchell President and COO Douglas Bauer
Slide 6: TRI Pointe Group – Executive Management Team
TRI Pointe Group – Executive Management Team BOARD OF DIRECTORS VP HUMAN RESOURCES FINANCIAL SERVICES HOMEBUILDER HOMEBUILDER PRESIDENT AND CHIEF OPERATING OFFICER VP CORPORATE MARKETING VP & GENERAL COUNSEL HOMEBUILDER HOMEBUILDER CHIEF EXECUTIVE OFFICER VP I T VP FINANCE CHIEF ACCOUNTING OFFICER C
Slide 7: Leading Brand Names Targeted to Specific Markets
Leading Brand Names Targeted to Specific Markets Market: Greater Puget Sound Area LTM Orders: 348 LTM Deliveries: 326 LTM Revenue: $126,531 LTM ASP: $388 Lots Owned or Controlled: 1,482 Markets: Washington DC, Richmond LTM Orders: 331 LTM Deliveries:431 LTM Revenue: $301,294 LTM ASP: $699 Lots Owned
Slide 8: National Economic Overview
National Economic Overview Rank Metropolitan Area Sept. 2014 Net Change % Change Source: BLS October 2014 Top Job Growth Markets Ranked by Change in Emp. – Sept 2014 New York-Northern New Jersey-Long Island, NY-NJ-PA 8,840,600 130,500 1.5% Houston-Sugar Land-Baytown, TX 2,921,700 119,400 4.3% Los An
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Slide 10: Maryland and Virginia
Maryland and Virginia • Founded in 1979 – over 19,000 homes delivered since inception • Your Home + Your Way – building broad product offering of innovative and flexible home designs • Developer and Builder in Maryland and Virginia LTM Orders: 331 LTM Deliveries: 431 LTM Revenue: $301,294 LTM ASP: $
Slide 11: California and Nevada
California and Nevada • Founded in 1921 – over 68,000 homes delivered in CA and NV since 1969 • A Home for Every Buyer – diverse product portfolio of both premier SFA and SFD Homes • Masterplan Developer and Home Builder in LA / Ventura, Inland Empire, San Diego and Las Vegas LTM Orders: 982 LTM Del
Slide 12: Washington State
Washington State • Founded in 1959 - delivered over 15,000 homes since inception • Focus on 6 core counties in the Puget Sound area targeting premium entry level through move-up segment offering Northwest contemporary designs with high level of customization • Price ranges from $220k - $985k LTM Ord
Slide 13: California and Colorado
California and Colorado • Founded 2009 – with Southern California operations, established Northern California operations in 2011 and Colorado in 2012. Initial IPO in January 2013 • Focus on growth markets in Southwestern US particularly coastal California (Northern & Southern) • Diversified premium
Slide 14: Arizona
Arizona • Founded in 1991 – acquired by WRECO in 2006 – over 7,700 homes delivered since inception • Broad range of product offerings in Phoenix and Tucson markets with appeal to affluent first-time and move-up segments • Price range from $206k to over $500k LTM Orders: 382 LTM Deliveries: 477 LTM R
Slide 15: Texas
Texas • Founded in 1971 – over 12,000 homes delivered since inception – acquired by WRECO in 1980 • Broad reach of product type ranging from $276k to $848k • Affordable luxury homes built primarily in suburban locations • Select land development opportunities in the Houston market LTM Orders: 559 LT
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Slide 17: Significant Land Supply to Fuel Growth
Market Owned Controlled Total Lots % Owned LTM Deliveries Years of Supply Total 25,888 4,223 30,111 86% 3,413 8.8 Significant Land Supply to Fuel Growth Combined Lot Position Southern California 16,001 16,385 98% 1,168 14.0 Northern California 2,399 2,758 87% 19.7 Colorado 59% 15.8 Maryland / Virgin
Slide 18: Land Acquisition and Land Development Spend
Land Acquisition and Land Development Spend Actual and Projected 4Q14 and FY2015 As of September 30, 2014 (unaudited) – on an adjusted basis (1) (in millions) (1) Includes legacy TRI Pointe land acquisition and development spend for the periods prior to July 7, 2014, the closing date of the WRECO tr
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Slide 20: California Land Portfolio
California Land Portfolio Our attractive land portfolio in California should position us well to continue to generate favorable returns • Finished lots available for near-term homebuilding operations • Strategic entitled land positions to support future growth in Inland Empire, San Diego and Los Ang
Slide 21: Significant Land Supply to Fuel Growth – California Lot Position
Significant Land Supply to Fuel Growth Total Lots Owned or Controlled % Owned Book Basis of Owned Inventory per lot LTM Deliveries Years of Supply Total California 19,143 96% $71,159 1,308 14.6 California Lot Position As of September 30, 2014 Geographic Breakdown Southern California LA/Ventura 2161
Slide 22: Net New Home Orders - GAAP
Net New Home Orders - GAAP Combined Company vs California For the periods ended September 30, 2014 (unaudited) YTD by State As of September 30, 2014 (unaudited)
Slide 23: Net New Home Orders - Adjusted
Net New Home Orders - Adjusted Combined Company vs California For the periods ended September 30, 2014 (unaudited) – on an adjusted basis (1) (1) Includes legacy TRI Pointe operations for the periods prior to July 7, 2014, the closing date of the WRECO transaction. See “Reconciliation of Non-GAAP Fi
Slide 24: New Home Deliveries - GAAP
New Home Deliveries - GAAP Combined Company vs California For the periods ended September 30, 2014 (unaudited) YTD by State As of September 30, 2014 (unaudited)
Slide 25: New Home Deliveries - Adjusted
New Home Deliveries - Adjusted YTD by State As of September 30, 2014 (unaudited) – on an adjusted basis (1) (1) Includes legacy TRI Pointe operations for the periods prior to July 7, 2014, the closing date of the WRECO transaction. See “Reconciliation of Non-GAAP Financial Measures” in the appendix
Slide 26: Backlog – Units and Dollar Value
Backlog – Units and Dollar Value Combined Company vs California Three months ended September 30, 2014 (unaudited ) ( dollars in thousands) Dollar Value by State Three months ended September 30, 2014 (unaudited)
Slide 27: Home Sales Revenue - GAAP
Home Sales Revenue - GAAP Combined Company vs California For the periods ended September 30, 2014 (unaudited) (dollars in thousands) YTD by State For the nine months ended September 30, 2014 (unaudited)
Slide 28: Home Sales Revenue - Adjusted
Home Sales Revenue - Adjusted Combined Company vs California For the periods ended September 30, 2014 (unaudited) – on an adjusted basis (1) (dollars in thousands) YTD by State For the nine months ended September 30, 2014 (unaudited) – on an adjusted basis (1) (1) Includes legacy TRI Pointe operatio
Slide 29: Homebuilding Gross Margins
Homebuilding Gross Margins Combined Company vs California For the periods ended September 30, 2014 (unaudited) YTD Homebuilding GM % For the nine months ended September 30, 2014 (unaudited) – on an adjusted basis (1) (1) Includes legacy TRI Pointe operations for the periods prior to July 7, 2014, th
Slide 30: Adjusted Homebuilding Gross Margins
Adjusted Homebuilding Gross Margins Combined Company vs California For the periods ended September 30, 2014 (unaudited) on an adjusted basis (1) YTD Homebuilding GM % For the nine months ended September 30, 2014 (unaudited) on an adjusted basis (1) (1) Includes legacy TRI Pointe operations for the p
Slide 31: California Inventory Discussion
California Inventory Discussion Total Pardee CA TPH CA Inventory Value Units Inventory Value Units Inventory Value Units Land Under Development or Held for Future Use Per Lot Per Lot Per Lot $ 71,159 $ 49,731 $215,951 Models, Homes Completed or Under Construction $ 290,320 $118,446 $171,874 Land Und
Slide 32: California Land Optionality
California Land Optionality
Slide 33: Potential Land Sale #1 – PA-6 – San Diego, CA
Potential Land Sale #1 – PA-6 – San Diego, CA • Multifamily site in San Diego consisting of 42.23 net acres • Entitled for 912 to 1,578 multifamily units • Part of Ocean View Hills masterplan in Otay Mesa – a suburban community within the City of San Diego • Listed for Sale with CBRE – San Diego – K
Slide 34: Potential Land Sale #2 – Pacific Highland Ranch – Employment Site
Potential Land Sale #2 – Pacific Highland Ranch – Employment Site Overview • • • • 15.72 Acre Site Entitled for 600-800,000 sf of commercial office or R&D office Part of Pacific Highlands Ranch Master Plan Located on SR-56 between I-5 and I-15 freeways
Slide 35: Long-Term Land Projects - California
Long-Term Land Projects - California # City County Original Remaining TOTAL 8,653 Project Natomas Sacramento Sacramento Bear Creek Stockton San Joaquin Skyline Ranch Santa Clarita Los Angeles 1250 1250 Golden Valley Santa Clarita Los Angeles Butterfield Banning Riverside 4318 4318 Meadowood Fallbroo
Slide 36: Northern California Division
Northern California Division Note: All information relating to projects that are projected to open after September 30, 2014 are estimates 2011 2012 2013 2014P 2015P as of September 30, 2014 Active Communities – Actual & Projected 4Q14 and FY2015
Slide 37: Inland Empire Division
Inland Empire Division 2013 2014P 2015P as of September 30, 2014 (1) All information relating to projects that are projected to open after September 30, 2014 are estimates Active Communities – Actual & Projected 4Q14 and FY2015
Slide 38: San Diego Division
San Diego Division * Projected as of September 30, 2014 Note: All information relating to projects that are projected to open after September 30, 2014 are estimates 2013 2014P 2015P Active Communities – Actual & Projected 4Q14 and FY2015
Slide 39: Southern California Division
Southern California Division 2011 2012 2013 2014P 2015P as of September 30, 2014 Active Communities – Actual & Projected 4Q14 and FY2015 Note: All information relating to projects that are projected to open after September 30, 2014 are estimates
Slide 40: Appendix
Appendix
Slide 41: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (unaudited) In this presentation, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to manage
Slide 42: Reconciliation of Non-GAAP Financial Measures – Three and Nine Months Ended
September 30, 2014 Three Months Ended Nine Months Ended Combined Reported Legacy Adjustments Combined Adjusted Combined Reported Legacy Adjustments Combined Adjusted Supplemental Operating Data: (dollars in thousands) Home sales revenue $ 471,801 $ 1,959 $ 473,760 $ 1,023,312 $162,107 $1,185,419 Net
Slide 43: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d)(unaudited) LTM Revenue as of September 30, 2014 (in thousands) Combined Reported Legacy Adjustments Combined Adjusted Supplemental Operating Data: Combined LTM Revenue $1,497,144 $281,082 $1,778,226