Slide 1: 2023 Fourth Quarter Results
2023 Fourth Quarter Results February 20, 2024
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, but are not limite
Slide 3: Management Team
Management Team Thomas Mitchell Douglas Bauer Glenn Keeler President & COO Chief Executive Officer Chief Financial Officer • Over 30 years of real estate • Over 30 years of real estate and • Over 10 years of real estate and homebuilding experience homebuilding experience and homebuilding experience
Slide 4: A diversified portfolio of markets
A diversified portfolio of markets West Segment Markets: San Francisco Bay Area, Inland Empire, Orange County-Los Angeles, Sacramento, San Diego, Phoenix, Las Vegas, Seattle Metro Area LTM Orders: 3,528 LTM Deliveries: 3,186 LTM HS Revenue: $2,408,704 LTM ASP: $756 Lots Owned or Controlled: 15,039 E
Slide 5: 2023 Fourth Quarter and Full Year Highlights
2023 Fourth Quarter and Full Year Highlights 5
Slide 6: 2023 Fourth Quarter Highlights
2023 Fourth Quarter Highlights • Net new home orders up 143% and absorption rate of 2.3 net Metric 4Q23 4Q22 % Change new home orders per community per month • New home deliveries down 10% to 1,813 with an average sales Orders 1,078 444 143% price of $685,000 Deliveries 1,813 2,016 -10% • Backlog un
Slide 7: 2023 Full Year Highlights
2023 Full Year Highlights • Net new home orders up 40% and absorption rate of 3.5 net Metric 2023 2022 % Change new home orders per community per month • New home deliveries down 13% to 6,063 with an average sales Orders 6,122 4,377 40% price of $693,000 Deliveries 5,274 6,063 -13% • Opened 70 commu
Slide 8: Fourth Quarter Results
OMES pointe tri Fourth Quarter Results ~ % ae A oo:
Slide 9: Active Selling Communities and Absorption Rate
Active Selling Communities and Absorption Rate Q4 2023 Results Active Selling Communities and Absorption Rate Active Selling Communities by Geography As of and for the quarters ended December 31, 2022 and 2023 As of December 31, 2023 175 2.5 Washington 2.3 D.C. Area(2) 155 150 3% Washington 136 2.0
Slide 10: Net New Home Orders – Q4 2023 Results
Net New Home Orders – Q4 2023 Results Net New Home Orders Net New Home Orders by Geography For the quarters ended December 31, 2022 and 2023 For the quarter ended December 31, 2023 1,200 Washington 1,078 D.C. Area(2) 1,000 Washington 5% 6% Carolinas(1) 9% 800 Increase 143% YOY Colorado 2% 600 Califo
Slide 11: Backlog – Units and Dollar Value – Q4 2023 Results
Backlog – Units and Dollar Value – Q4 2023 Results Backlog – Units and Dollar Value Backlog Dollar Value by Geography As of December 31, 2022 and 2023 (dollars in thousands) As of December 31, 2023 2,500 2022 2023 $2,000,000 Washington 2,320 Washington D.C. Area(2) $1,800,000 $1,612,114 5% 7% 2,000
Slide 12: New Home Deliveries – Q4 2023 Results
New Home Deliveries – Q4 2023 Results New Home Deliveries New Home Deliveries by Geography For the quarters ended December 31, 2022 and 2023 For the quarter ended December 31, 2023 Washington 2,500 Washington D.C. Area(2) 4% 3% Carolinas(1) 2,016 10% 2,000 1,813 Colorado 2% 1,500 Decrease 10% YOY Te
Slide 13: Home Sales Revenue – Q4 2023 Results
Home Sales Revenue – Q4 2023 Results Home Sales Revenue Home Sales Revenue by Geography For the quarters ended December 31, 2022 and 2023 (dollars in thousands) For the quarter ended December 31, 2023 $1,600,000 $1,504,177 Washington D.C. $1,400,000 Area(2) Washington 6% $1,241,258 Carolinas(1) 5% $
Slide 14: SG&A Expenses, Income Before Taxes, Net Income and EPS
SG&A Expenses, Income Before Taxes, Net Income and EPS (Diluted) – Q4 2023 Results Selling, General and Administrative Expenses Income Before Taxes, Net Income Available to For the quarters ended December 31, 2022 and 2023 (dollars in thousands) Common Stockholders and EPS (Diluted) For the quarters
Slide 15: Land Supply, Orders by Month, Return on Equity and Risk Profile
Land Supply Orders by Month Return on Equity and Risk Profile Book Value Per Share Debt 15
Slide 16: Significant Land Supply to Fuel Growth
Significant Land Supply to Fuel Growth Combined Lot Position As of December 31, 2023 Note: Dollars in thousands Implied Years Geography Owned Controlled(3) Total Lots % Owned Inventory Dollars LTM Deliveries of Supply(4) Arizona 1,045 1,349 2,394 44% $281,270 630 3.8 California 8,413 1,735 10,148 83
Slide 17: Net New Home Orders – Historical by Quarter
Net New Home Orders – Historical by Quarter Full-Year Absorption Rate: 2023 – 3.5 per month 2022 – 2.9 per month 2021 – 4.8 per month 2020 – 4.0 per month 2019 – 3.1 per month 2,500 1,987 1,912 1,933 2019 2,000 1,896 2020 1,661 1,619 1,622 1,491 1,513 2021 1,500 1,356 1,349 1,409 1,424 1,321 1,332 1
Slide 18: Return on Equity and Risk Profile
Return on Equity and Risk Profile Increased focus on generating strong return on equity (ROE) growth through a combination of improved asset efficiency and greater operating margins with a continued focus on maintaining an efficient capital structure. Measured approach to share repurchase activity w
Slide 19: Book Value Per Share
Book Value Per Share Dual impact of the reduction in shares of common stock outstanding through opportunistic share repurchases and strong earnings have contributed to accelerated growth in book value per share and tangible book value per share at a compounded annual growth rate of 15%, respectively
Slide 20: Selected Balance Sheet Metrics
Selected Balance Sheet Metrics $ in thousands 12/31/2023 12/31/2022 Cash and cash equivalents $ 868,953 $ 889,664 Real estate inventories $ 3,337,483 $ 3,173,849 Total debt $ 1,382,586 $ 1,378,051 Total stockholders’ equity $ 3,010,958 $ 2,832,389 Ratio of debt-to-capital 31.5% 32.7% Ratio of net de
Slide 21: 2024 First Quarter Outlook
2024 First Quarter Outlook tri pointe HOMES
Slide 22: 2024 First Quarter Outlook
2024 First Quarter Outlook • Anticipate delivering between 1,200 and 1,400 homes at an average sales price between $645,000 and $655,000 for the first quarter • Anticipate homebuilding gross margin percentage for the first quarter will be in the range of 22.0% to 23.0% • Anticipate SG&A expense rati
Slide 23: 2024 Full Year Outlook
2024 Full Year Outlook • Anticipate delivering between 6,000 and 6,300 homes at an average sales price between $645,000 and $655,000 for the full year • Anticipate homebuilding gross margin percentage for the full year will be in the range of 21.5% to 22.5% • Anticipate SG&A expense ratio for the fu
Slide 24: Supplemental Data and Reconciliation
Supplemental Data and Reconciliation 24
Slide 25: Reconciliation of Non-GAAP Financial Measures (unaudited)
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 26: Reconciliation of Non-GAAP Financial Measures (cont'd) (unaudited)
Reconciliation of Non-GAAP Financial Measures (cont’d) (unaudited) The following table reconciles the Company’s ratio of debt-to-capital to the non-GAAP ratio of net debt-to-net capital. We believe that the ratio of net debt-to-net capital is a relevant financial measure for management and investors