Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q3 2023 Earnings Presentation
17 slides from Green Brick Partners's earnings presentation, Nov 1, 2023
Slide 1: Investor Presentation 2023 Third Quarter
Investor Presentation 2023 Third Quarter 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and our conference call contain “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 e
Slide 3: Management Presenters
Jim Brickman Chief Executive Officer and Co-Founder Management Presenters Jed Dolson President and Chief Operating Officer Rick Costello Chief Financial Officer 3
Slide 4: Industry-Leading Gross Margins
Industry-Leading Gross Margins Green Brick has maintained one of the best gross margins in the industry Gross Margin Percentage (Most Recently Reported Quarter) 33.3% 27.8% 26.8% 26.8% 26.4% 26.4% 29.5% 23.1% 23.5% 22.5% 22.1% 27.8% 21.6% 25.7% 25.2% 24.6% 24.4% 24.3% 23.6% 23.1% 22.3% 21.5% 20.1% 1
Slide 5: Strategic Advantages
Strategic Advantages YTD Net Sales Orders YoY Change (Three Most Recently Reported Quarters) 73% We believe we are well positioned to capture future demand and increase market share. • Footprint in two of the best markets of DFW and Atlanta 29% 28% o Demographic shift, job creation, and in-migration
Slide 6: Single-Family Inventory Remains Low
Single-Family Inventory Remains Low Both existing and new single-family home inventory remain near historical lows across the country 6
Slide 7: Percent of Mortgages Outstanding By Interest Rate
Percent of Mortgages Outstanding By Interest Rate Over 60% of mortgages have an interest rate below 4%, and more than 80% have an interest rate below 5% Percent of Mortgages Outstanding By Interest Rate 38% 23% 20% 10% 9% <3% 3-4% 4-5% 5-6% 6%+ Source: FHFA, Calculatedriskblog.com, BTIG Research. Da
Slide 8: 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 9: Highlights – Q3 2023
Highlights – Q3 2023 • Net new home orders increased 95.0% year-over-year, the Q3 Q3 largest increase among peers. Quarterly absorption rate Change 2023 2022 increased 73.6% year-over-year to 9.2. Net new home orders 788 404 95.0% • Cycle times were down 41 days sequentially allowing us to close 16%
Slide 10: Highlights – YTD 2023
Highlights – YTD 2023 • Net new home orders increased 72.7% year-over- YTD YTD Change year, the largest increase among peers. 2023 2022 Absorption rate increased 58.8% year-over-year Net new home orders 2,677 1,550 72.7% to 10.8. New homes delivered 2,298 2,189 5.0% • Residential units revenue incre
Slide 11: Business Priorities
Cancellation Rate (Most Recently Reported Quarter) Business Priorities 28% 24% 21% • Manage closings in current backlog 16% 16% 16% 16% 15% o Actively working with buyers at all stages to secure 13% 14% financing. Buyer credit profiles remain consistent. 10% 10% 10% 11% o Cancellation rate remained
Slide 12: Finished Lot Position Provides Opportunities
Finished Lot Position Provides Opportunities • We have completed over 3,900 lots through 9/30/2023. Expect to have approximately 6,000 finished lots as of 12/31/2023, versus approximately 2,900 finished lots as of 12/31/2022, after averaging about 2,850 home starts per year for 2020 through 2022. Ap
Slide 13: Expected Lot Deliveries In 2023 - DFW
Expected Lot Deliveries In 2023 - DFW Majority of our DFW lots are being delivered in infill and adjacent “desirable areas” Lots Delivered YTD as of 9/30/2023 Lots To Be Delivered in 2023 13
Slide 14: Expected Lot Deliveries In 2023 - Atlanta
Expected Lot Deliveries In 2023 - Atlanta Majority of our Atlanta lots are being delivered in infill and adjacent “desirable areas” 3,851 Lots Delivered YTD as of 9/30/2023 Lots To Be Delivered in 2023 14
Slide 15: Appendix
Green Brick Partners Appendix 15
Slide 16: Appendix: Net Debt To Total Capitalization (as of 9/30/23)
Appendix: Net Debt To Total Capitalization (as of 9/30/23) Less: Cash and Gross cash Net equivalents Dollars in Thousands Total debt, net of debt issuance costs $347,127 $223,453 $123,674 Total Green Brick Partners, Inc. stockholders’ equity $1,245,216 $0 $1,245,216 Total capitalization $1,592,343 $
Slide 17: Appendix: Net Income Return on Avg. GAAP Common Equity
Appendix: Net Income Return on Avg. GAAP Common Equity YTD 2023 Dollars in Thousands Annualized Net Income Applicable To Common Shareholders 1 $279,267 GRBK Common Equity Beginning $1,014,211 GRBK Common Equity Ending $1,197,613 GRBK Common Equity Average $1,105,912 Net Income Return on Avg GAAP Com