Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q2 2024 Earnings Presentation
18 slides from Green Brick Partners's earnings presentation, Aug 1, 2024
Slide 1: 2024 Second Quarter Investor Presentation
Normandy Homes | Painted Tree | McKinney TX INVESTOR PRESENTATION 2024 Second 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) 34.5% 27.8% 26.8% 26.8% 26.4% 26.4% 23.5% 29.9% 22.5% 23.1% 22.1% 25.9% 25.8% 25.8% 25.0% 24.1% 24.0% 23.8% 23.6% 23.6% 22.6% 22.5% 21.
Slide 5: We Like Land & Lots
We Like Land & Lots Return On Average Equity 25.7% Different from the promoted “land light” model, we believe that owning land on our 21.1% balance sheet and self-developing align more closely with Green Brick’s objectives of 17.7% long-term growth and shareholder value creation. We believe our land
Slide 6: Persistent Lock-In Effect
Persistent Lock-In Effect Approximately 57% of mortgages have an interest rate below 4%, and approximately 76% have an interest rate below 5% Percent of Mortgages Outstanding By Interest Rate 35% 22% 19% 14% 10% <3% 3-4% 4-5% 5-6% 6%+ Source: FHFA. Data as of 1Q24. 6
Slide 7: Single-Family Inventory Remains Low
Single-Family Inventory Remains Low Existing single-family home inventory remains near historical lows across the country. 7
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 – Q2 2024
Highlights – Q2 2024 • Home closings increased 26.1% year-over-year to 987 units, the highest in company history. • Average sales price of homes delivered was down 4.4% 2Q24 2Q23 Change year-over-year to $554K as expected, due to changes in community mix from infill to infill-adjacent locations. Thi
Slide 10: Highlights – YTD 2024
Highlights – YTD 2024 YTD 2024 YTD 2023 Change New homes delivered 1,808 1,544 17.1% • Home closings increased 17.1% year-over-year to 1,808 units. Average sales price of homes delivered $548 $585 -6.4% • Average sales price of homes delivered was down 6.4% year-over-year to $548K, due to changes in
Slide 11: Strategic Advantages
Strategic Advantages We Substantially Grew Our Lots Owned and Controlled We believe we are well positioned to capture future demand and increase While Deleveraging Our Balance Sheet market share. 40,000 35.0% 35,000 30.0% • Footprint in two of the best markets of DFW and Atlanta 31.3% 30,000 30.0% 2
Slide 12: Business Priorities
Business Priorities Cancellation Rate (Most Recently Reported Quarter) 22% • Manage sales pace 18% o Cancellation rate of 9.2% was one of the lowest among homebuilding peers. 14% 14% o Incentives averaged 4.5% for new sales orders in 2Q24. 13% 13% o YTD Absorption rate was 9.8 per quarter per commun
Slide 13: 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 13
Slide 14: 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 14
Slide 15: Appendix
INVESTOR PRESENTATION Appendix
Slide 16: Appendix: Net Debt To Total Capitalization – 6/30/24
Appendix: Net Debt To Total Capitalization – 6/30/24 Less: Cash and Gross cash Net equivalents Total debt, net of debt issuance costs $309,572 $133,294 $176,278 Total Green Brick Partners, Inc. stockholders’ equity $1,439,235 $0 $1,439,235 Total capitalization $1,748,807 $133,294 $1,615,513 Debt to
Slide 17: Appendix: Net Income Return on Avg. GAAP Common Equity
Appendix: Net Income Return on Avg. GAAP Common Equity YTD 2024 Dollars in Thousands 2021 2022 2023 Annualized Net Income Applicable To Common Shareholders $190,139 $289,025 $281,751 $374,4441 GRBK Common Equity Beginning $640,242 $826,852 $1,014,211 $1,253,101 GRBK Common Equity Ending $826,852 $1,
Slide 18: Appendix: Net Income Return on Avg. Total Assets
Appendix: Net Income Return on Avg. Total Assets YTD 2024 Dollars in Thousands 2021 2022 2023 Annualized Net Income Applicable To Common Shareholders $190,139 $289,025 $281,751 $374,4441 Total Assets Beginning $988,847 $1,421,867 $1,655,675 $1,902,832 Total Assets Ending $1,421,867 $1,655,675 $1,902