Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Investor Day (November 2015)
123 slides from Tri Pointe Homes's investor day presentation, Nov 10, 2015
Slide 1: 2015 Investor Day – November 10, 2015
2015 Investor Day – November 10, 2015 Maracay Homes – Pardee Homes – Quadrant Homes – Trendmaker Homes – TRI Pointe Homes – Winchester Homes
Slide 2: Forward Looking Statement
Forward Looking Statement 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 esti
Slide 3: Investor Day Opening Remarks
Investor Day Opening Remarks Doug Bauer, CEO
Slide 4: Homebuilding Industry
Homebuilding Industry Demand Drivers • Job growth is a positive indicator for increased demand • Household formation/”family formations” continues to improve – Focus on Millennials and Baby Boomers Supply Constraints • Land – Available developed lots in core markets well located along major transpor
Slide 5: Strategic Plan
Strategic Plan • Target growing deliveries from existing brands to 5,100 – 5,400 homes by 2018 (“3-Year Goal”) • Create additional growth by expanding geographic presence in Texas and the Southeast through organic and/or acquisition strategies • Continue to focus on the monetization of the longer-te
Slide 6: A Family of Regional Homebuilders
A Family of Regional Homebuilders A Family of Regional Homebuilders Market: Greater Puget Sound Area LTM Orders: 404 LTM Deliveries: 398 LTM HB Revenue: $172,282 LTM ASP: $433 Lots Owned or Controlled: 1,422 3-Year Goal: 400 Deliveries Markets: Los Angeles/Ventura, Inland Empire, San Diego, Las Vega
Slide 7: Land Development Company
Land Development Company Mike McMillen
Slide 8: Asset Locations
ASSET LOCATIONS Total Target Project Name Location Lots Activation 1 Golden Valley Santa Clarita 498 Active 2 Skyline Ranch Santa Clarita 1,260 2-4 Years 3 Banning Inland Empire 4,318 2-4 Years 4 Natomas Sacramento ~120 1-2 Years 5 Meadowood San Diego 844 1-2 Years 4 6 Bear Creek Stockton ~1,252 5+
Slide 9: Golden Valley
GOLDEN VALLEY City of Santa Clarita 9
Slide 10: Project Location
PROJECT LOCATION • Located in Santa Clarita Lancaster Palmdale • 21 Miles from Burbank Airport Golden Valley Simi Valley • 33 Miles from Downtown Los Angeles Burbank Airport • 37 Miles from LAX Downtown Los Angeles LAX GOLDEN VALLEY 10
Slide 11: Location Map
LOCATION MAP Skyline Ranch Five Knolls Golden Valley GOLDEN VALLEY 11
Slide 12: Area Amenities
AREA AMENITIES Henry Mayo Newhall Memorial Hospital 8 miles West La Mesa Via Princessa Metrolink Junior High 2.5 miles West API 835 Costco 24 Hour Fitness SR-14 Fair Oaks Ranch Terramar Retail Center Lowe’s, Target, PetSmart, Chipotle, Bed Bath & Beyond, Shell Golden Oak Elementary API 910 Golden Va
Slide 13: Project Amenities
PROJECT AMENITIES GOLDEN VALLEY 13
Slide 14: Community Rec Area Rear Plan - HOA
COMMUNITY REC AREA REAR PLAN- HOA • Fitness Center • Entertainment Areas • Lap Pool • Multi-Purpose Room • Outdoor BBQ • Kids Pool • Indoor Kitchen • Fire Pits • Spa • Bocce Ball • Large Lawn Area • Splash Pad GOLDEN VALLEY 14
Slide 15: Images
R onl AY! @ GOLDEN VALLEY
Slide 16: Product Location Plan
PRODUCT LOCATION PLAN GOLDEN VALLEY 16
Slide 17: Architectural Programming
Product Plan Unit Target # of Type Type Mix Size Stories Bed Bath Den Bonus Garage ARCHITECTURAL PROGRAMMING Plan 1 14 1,625 1 2 2 Option n/a 2 Plan 2 14 1,660 1 2 2 Option n/a 2 Plan 3 14 1,695 1 2 2 Option n/a 2 Active Plan 1X 17 2,350 2 3 2.5 Std Std 2 Adult Plan 2X 18 2,550 2 3 2.5 Std Std 2 Pla
Slide 18: Architecture Inspiration Images
ARCHITECTURE INSPIRATION IMAGES GOLDEN VALLEY 18
Slide 19: New Home Competition
NEW HOME COMPETITION Source: Meyers Research GOLDEN VALLEY
Slide 20: Key Takeaways
KEY TAKEWAYS Where are the opportunities to increase value? Marketing: Rename & brand the community to a “premium” lifestyle Amenities: New design of “high level” amenities to increase home revenue & lot values Optimize value: Deliver “finished lots” to guest builders, comprehensive offering Monetiz
Slide 21: Skyline Ranch
SKYLINE RANCH County of Los Angeles 21
Slide 22: Location Map
LOCATION MAP Skyline Ranch Five Knolls Golden Valley SKYLINE RANCH 22
Slide 23: Area Amenities
AREA AMENITIES Skyline Ranch Canyon High School Valencia City Center Employment Opportunities 6 Miles West Leona Cox SR-14 Elementary Valencia Westgate Mall 6 Miles West Sierra Vista I-5 Freeway Junior High 7 Miles West Canyon Country Plaza Ralph’s, Food 4 Less, Restaurants, Big 5 Sporting Goods, Ph
Slide 24: Project Aerial
PROJECT AERIAL SKYLINE RANCH 24
Slide 25: Plan Comparison
PLAN COMPARISON SKYLINE RANCH 25
Slide 26: Product Mix by PA Breakdown
Existing Proposed PRODUCT MIX BY PA BREAKDOWN Product Type Yield Mix Yield Mix Grayson 138 11% 45 x 90 Lot 189 16% Market Rate 55 x 90 Lot 208 17% 50 x 100 Lot 138 11% 55 x 105 Lot 658 52% 60 x 100 Lot 144 12% 60 x 105 Lot 337 27% 65 x 100 Lot 173 14% 70 x 105 Lot 265 21% Subtotal 1,260 100% 990 81%
Slide 27: Key Takeaways
KEY TAKEWAYS Where are the opportunities to increase value? Market Demand: Supply constrained market, continuation to Golden Valley Team: Developed “All Star” consultant team to expedite approval process with LA County Optimize value: Re-positioned community plan with greater mix of lot sizes and pr
Slide 28: Banning
BANNING City of Banning TRIPOINTE” G R O U P
Slide 29: Project Location
PROJECT LOCATION • 30 miles east of Riverside • 27 miles west of Palm Springs Banning • 80 miles east of Los Angeles BANNING 29
Slide 30: Area Amenities
AREA AMENITIES San Gorgonio Sundance Middle School Banning Project Anna Hause Elementary Glen View High School Sundance Elementary Banning Transit Bus Stop Sun Lakes Village Shopping Center Cabazon Outlet Mall Home Depot, Walmart, Bed Bath & Beyond, 8 Miles East Albertsons, Food 4 Less, Best Buy, Ko
Slide 31: Project Aerial
PROJECT AERIAL BANNING 31
Slide 32: Open Space Plan
a < 4 a Lu < ra 7) 2 lw a. .o) BANNING TRI POINTE” .
Slide 33: Site Plan
SITE PLAN TRIPOINTE’, G R O U P
Slide 34: Product Mix by PA Breakdown
Existing Proposed PRODUCT MIX BY PA BREAKDOWN Product Type Yield Mix Yield Mix 6 Pack SFD 572 13% Cluster 1,106 26% 386 9% 38 x 110 Lot 208 5% Market Rate 45 x 100 Lot 566 13% 45 x 110 Lot 1,109 26% 50 x 100 Lot 728 17% 50 x 110 Lot 958 22% 55 x 100 Lot 793 18% 55 x 110 Lot 362 8% 60 x 110 Lot 575 1
Slide 35: Key Takeaways
KEY TAKEWAYS What are the opportunities to increase value? Market Demand: Sundance is performing well, bring community to market sooner than anticipated Amenities: New programming of “open space” amenities and trails for community connectivity Optimize value: Introduction of Age Qualified, more bala
Slide 36: Andy Warren
Andy Warren Add Photo 36
Slide 37: Company Overview
Company Overview • Established in 1991 • Office located in Scottsdale Arizona. • Active operations in greater Phoenix and Tucson markets. • 92 employees, including sales and field • 17 active selling locations as of 9/30/15 • LTM deliveries as of 9/30/15: 417 • Lots owned or controlled (1): 1,798 (1
Slide 38: Phoenix Market Overview
Phoenix Market Overview • Population: 4.5 million – 12th Northwest largest MSA & one of fastest Valley growing in US • Median resale: $217,000 • Median new home: $293,000 West • Maracay Homes targets the Valley premium segment of the Southeast production housing market, Valley which centers in three
Slide 39: Tucson Market Overview
Tucson Market Overview • Population: 1.0 Million. Second largest city in Arizona • 2 hours southeast of Phoenix Northwest/Tangerine Road Corridor • Median resale: $177,000 Foothills • Median new home: $251,000 • Maracay Homes targets the premium segment of the production housing market, which is pri
Slide 40: Employers by County
Employers by County EAST VALLEY LARGEST EMPLOYERS NORTH WEST VALLEY LARGEST EMPLOYERS Organization Jobs Organization Jobs Intel Corporation 11,960 Banner Health 5,595 Banner Health 11,426 Honeywell 3,847 Arizona State University 9,360 American Express 3,095 Mesa Unified School District 4 8,220 USAA
Slide 41: Phoenix Market Metrics
Phoenix Market Metrics 41 Source: John Burns Real Estate Consulting
Slide 42: Phoenix Market Metrics
Phoenix Market Metrics 42 Source: John Burns Real Estate Consulting
Slide 43: Tucson Market Metrics
Tucson Market Metrics 43 Source: John Burns Real Estate Consulting
Slide 44: Tucson Market Metrics
Tucson Market Metrics 44 Source: John Burns Real Estate Consulting
Slide 45: Lots Owned or Controlled – Phoenix, Arizona
Lots Owned or Controlled (1) Phoenix, Arizona Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 1 Verrado Tilden Buckeye 102 11 2 Verrado Palisades Buckeye 63 50 3 Verrado Victory Buckeye 98 89 4 Artesian Ranch Chandler 90 41 5 Vaquero Ranch Chandler 74 17 6 Maracay at Layton
Slide 46: Lots Owned or Controlled – Tucson, Arizona
Lots Owned or Controlled (1) Tucson, Arizona Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 25 Tortolita Vistas Marana 43 24 26 Rancho del Cobre Oro Valley 68 39 27 Desert Crest - CP Vistoso Oro Valley 103 103 28 The Cove - CP Vistoso Oro Valley 83 83 29 Summit (South) - CP
Slide 47: Victory at Verrado – Buckeye, AZ
Company Overview Victory at Verrado – Buckeye, AZ • 55+ Active Adult community developed by DMB Associates in Phoenix West Valley premium Verrado master plan • Active adult anticipated to include 3,500 of the 11,000 planned homes in the highly amenitized Verrado • Maracay controls 98 lots in initial
Slide 48: Victory at Verrado – Buckeye, AZ
Company Overview Victory at Verrado – Buckeye, AZ • Sales opened in January 2015; 22 sales YTD • Victory-specific amenities scheduled for completion in December 2015 • Maracay developed age-targeted product series incorporating Universal Design elements • One-story only home designs range from 2,200
Slide 49: Morrison Ranch – Gilbert, AZ
Company Overview Morrison Ranch – Gilbert, AZ • 3,000 acre Master Plan in sought-after East Valley Gilbert location • Second-to-last phase of community which has developed over a 15 year period • Unique rural ranch, agricultural themed community with 400 acres of pedestrian oriented greenbelts, fish
Slide 50: Morrison Ranch – Gilbert, AZ
Company Overview Morrison Ranch – Gilbert, AZ • Maracay developing two new one and two story product series to fit with community requirements • 35’ wide Artisan series, 2,000 – 3,200 sq ft, anticipated base price range $285K - $338K • 50’ wide Marquis Series, 2,300 – 4,000 sq ft; anticipated base p
Slide 51: Maracay Financial Metrics
• Strengthening Phoenix market has led to increases in • Margin compression in 2015 is the result of higher lot orders and deliveries in 2015 costs and weak market conditions in 2014 • Increase in orders largely due to a higher absorption • Margins have recently stabilized and started to trend pace
Slide 52: Alan Shapiro
5 BUILDER OF THE YEAR AND 2014 DEVELOPER OF THE YEA\
Slide 53: Company Overview
Add Logo here Company Overview • Established in 1979 • Office located in Bethesda, Maryland • Operate in Northern Virginia & Suburban Maryland • 106 employees, including sales and field • 13 active selling locations as of 9/30/15 • LTM Deliveries as of 9/30/15: 405 • Lots owned or controlled (1): 2,
Slide 54: DC Market Overview
DC Market Overview Population: I-70 Corridor • Baltimore: 2,800,100 • Washington: 6,105,200 I-270 Median Resale Dulles Toll Rd • Baltimore: $236,000 BW Corridor • Washington: $355,000 I-66 Median New Home I-95 South • Baltimore: $400,900 • Washington: $481,800 New Home Markets are Divided into 6 Pri
Slide 55: Employers by County
Employers by County Top Employers: By MSA Washington MSA* Baltimore MSA** Top Employers Top Employers County Schools 98,000+ Johns Hopkins Health 22,000 Inova Health System 16,000 Med Star Health 22,000 Marriott International 15,200 Johns Hopkins U 15,800 U of Md. College Park 13,900 Verizon Inc. 14
Slide 56: Washington MSA Market Metrics
Washington MSA Market Metrics 56 Source: John Burns Real Estate Consulting
Slide 57: Washington MSA Market Metrics
Washington MSA Market Metrics 57 Source: John Burns Real Estate Consulting
Slide 58: Baltimore MSA Market Metrics
Baltimore MSA Market Metrics 58 Source: John Burns Real Estate Consulting
Slide 59: Baltimore MSA Market Metrics
Baltimore MSA Market Metrics 59 Source: John Burns Real Estate Consulting
Slide 60: Lots Owned or Controlled – Virginia
Add Logo here Lots Owned or Controlled (1) Virginia Lots Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 1 Reserve at Waples Mill Oakton 28 7 2 Stuart Mill & Timber Lake Oakton 19 15 3 Stable Hill Glen Allen 49 1 4 Village of Piedmont Haymarket 168 158 5 English Manor Townho
Slide 61: Lots Owned or Controlled – Maryland
Add Logo here Lots Owned or Controlled (1) Maryland Lots Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 1 Hawthornes Grant Arnold 0 11 2 Watson's Glen Millersville 103 101 3 Landsdale Village SFD Monrovia 222 214 4 Landsdale Everson Townhomes Monrovia 100 100 5 Landsdale TN
Slide 62: Community Overview Cabin Branch – Clarksburg, MD
Add Logo here Community Overview Cabin Branch – Clarksburg, MD • Located west of I-270 in Clarksburg, Montgomery County, Maryland in the I-270 Technology corridor • The site consists of 540 acres (Winchester owns 217 acres) Cabin Branch • Designed as a mixed use, transit oriented and pedestrian frie
Slide 63: Community Overview Cabin Branch – Clarksburg, MD
Community Overview Cabin Branch – Clarksburg, MD 63
Slide 64: Community Overview Cabin Branch – Clarksburg, MD
Community Overview Cabin Branch - Clarksburg, MD • 24’,30’,36’ wide single family detached product • Square footage range: 2,500 to 3,600 • Current base price range: $480K to $719K • 18,20,22’ wide single family attached product • Square footage range: 2,000 to 2,700 • Current base price range: $375
Slide 65: Community Overview Potomac Highlands – Potomac, MD
Add Logo here Community Overview Potomac Highlands - Potomac, MD • 23 fee simple townhomes • Sold under premium Camberley brand • Located in Potomac, MD • Short distance to I-270 and I-495 • Close to upscale mall, shops, restaurants and entertainment • Constrained land supply market, only 2 new home
Slide 66: Community Overview Potomac Highlands – Potomac, MD
Community Overview Potomac Highlands - Potomac, MD • (19) 26-28’ Wide Luxury Elevator Towns • Square footage range: 4,000 + • Anticipated base price range: Low $1.0 M • (4) 18’ Affordable Towns • Square footage: 1,400 to 1,500 • Anticipated base price range: $180K 66
Slide 67: Financial Metrics
Financial Metrics • Orders 23% higher despite 5.6 fewer average selling • HB Revenue declined due to mix shift to lower ASP communities homes as a result of product repositioning efforts • Absorption pace 73% higher, thanks to greater focus • Gross margin decline reflects higher incentives as a on i
Slide 68: Ken Krivanec
QUADRANT S HOMES Ken Krivanec
Slide 69: Company Overview
Company Overview • Established in 1969 • Office located in Bellevue, Washington • Operate in the 6 core counties that comprise the greater Puget sound area of the Seattle market • 96 employees, including sales and field • 11 active selling locations as of 9/30/15 • LTM Deliveries as of 9/30/15: 398
Slide 70: Seattle MSA Market Overview
Seattle MSA Market Overview County Market Areas: Unemployment Median County Population Rate Income Kitsap 256,890 5.2% $ 61,892 King 2,070,488 3.6% $ 71,993 Pierce 834,906 6.1% $ 59,463 Skagit 118,837 6.3% $ 55,919 Snohomish 757,598 3.9% $ 69,476 Thurston 267,951 5.6% $ 60,726 • Market made up of 6
Slide 71: Seattle Market Metrics
Seattle Market Metrics 71 Source: John Burns Real Estate Consulting
Slide 72: Seattle Market Metrics
Seattle Market Metrics 72 Source: John Burns Real Estate Consulting
Slide 73: Employers by County
Employers by County Top Employers: By County King Snohomish Top Employers Top Employers Boeing 85,000 Boeing 40,000 Microsoft 41,664 Naval St Everett 6,350 U of W 29,800 State WA 5,400 Providence 20,240 Providence 3,500 Amazon 15,000 Tulalip 3,500 King Co. 12,993 Sno County 2,700 USPS 11,914 Everett
Slide 74: Lots Owned or Controlled
Lots Owned or Controlled (1) Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 1 Skagit Highlands Mt Vernon 423 25 1 Skagit Clearwater Court Mt Vernon 11 11 1 Skagit Surplus Pod E Mt Vernon 4 4 4 Kings Corner 1&2 Mill Creek 116 34 5 Filbert Glen Bothell 16 7 4 King's Corner 3
Slide 75: Lots Owned or Controlled
Lots Owned or Controlled (1) Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 24 English Landing P1 Redmond 50 50 12 Heathers Ridge South Redmond 8 8 27 Cedar Landing North Bend 123 123 28 42nd Avenue Townhomes Seattle 40 40 29 Pearl & Delores Seattle 12 12 30 Monarch Ridge S
Slide 76: Community Overview Heathers Ridge – Kirkland, WA
Community Overview Heathers Ridge – Kirkland, WA • 49 lots - 30’ & 40’ wide product • Woodley Architectural Group designs • Square footage range: 1,833 to 3,112 • Base price range: $780K to $935K • Opened for sales on 5/16/15, sold 25 for an absorption rate of 5.1 per month (1) • Expected gross marg
Slide 77: Community Overview English Landing – Redmond, WA
Community Overview English Landing – Redmond, WA • 75 Lots - 40’ wide product • Woodley Architectural Group Designs • Square footage range: 3,000 to 4,000 • Base price range: $910K to $1.0 million • Anticipated opening November 2016 • Expected gross margins for this project is 22% Education Hill: •
Slide 78: Financial Metrics
Financial Metrics • Favorable market conditions, innovative product • Higher home sales revenues are a function of designs and a strategic repositioning to the Eastside increases in deliveries and average sales prices had led to healthy Y-O-Y increases to deliveries and • Anticipate these trends to
Slide 79: Las Vegas Division
Las Vegas Division Klif Andrews 79
Slide 80: Division Overview
Division Overview Las Vegas Division • Established in 1952 • Office located in Las Vegas, Nevada • Division Operations have included: • Merchant homebuilding operations • Masterplan community design and development • Large scale land development and entitlement • 88 Employees, including sales and fi
Slide 81: Las Vegas Market Overview
Las Vegas Las Vegas Division Market Overview • Market made up of only one county, Clark County 13 11 12 Northwest • Area: Approx 600 sq miles 10 North Las Vegas • Population: Approx 2,000,000 Summerlin • Median Resale: $193,200(1) • Median New Home: $305,047(1) Summerlin South 9 8 • New home market
Slide 82: Las Vegas Market Metrics
Las Vegas Las Vegas Division Market Metrics 82 Source: John Burns Real Estate Consulting
Slide 83: Las Vegas Market Metrics
Las Vegas Las Vegas Division Market Metrics 83 Source: John Burns Real Estate Consulting
Slide 84: Employers by County
Employers by County Las Vegas Division Top Employers: By County(1) Clark Top Employers MGM Resorts 41,000 Clark County School District 35,000 Wynn Resorts 12,500 Clark County Gov 11,500 Nellis AFB 9,500 UNLV 5,500 Caesers 5,000 Southwest Airlines 3,500 University Medical Center 3,000 Source: (1) UNL
Slide 85: Lots Owned or Controlled
Lots Owned or Controlled (1) Las Vegas Division Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 1 LivingSmart at Eldorado Ridge Las Vegas 169 22 2 LivingSmart at Eldorado Heights Las Vegas 135 24 3 LivingSmart Sandstone Las Vegas 145 68 4 Ridgeview Las Vegas 4 4 5 North Peak
Slide 86: Community Overview Inspirada Master Plan
Community Overview Las Vegas Division Inspirada Master Plan Current Phase of Development: • 358 lots remaining, ranging from 3,500 to 8,000 square feet • Three active and one future product lines: • Solano, Alterra, Bella Verdi and Escala • Product square footages range from 2,180 to 4,200 • Current
Slide 87: Community Overview Eldorado Master Plan
Las Vegas Division Community Overview Eldorado Master Plan Current Phase of Development: • Large Pardee holding in North Las Vegas nearing build-out • 259 lots remaining; lots ranging from 3,500 to 6,000 sq ft • Three product lines: Ridge, Heights and Sandstone • Products square footages range from
Slide 88: Community Overview Skye Canyon Master Plan
Las Vegas Division Community Overview Skye Canyon Master Plan Current Phase of Development: • Brand new master planned community in Northwest Submarket • 192 Lots • Pardee Developing 2 Product Lines • 4,000 and 6,500 sq ft lots • Products range from 2,500 sq ft to 3,900 sq ft • Anticipated base sale
Slide 89: Financial Metrics – Las Vegas Division
Financial Metrics Las Vegas Division • Absorption rate of 3.3 is indicative of strong market • Gross margins trending higher due to price discipline fundamentals and improving market fundamentals • Increase in active community count has led to • Gross profit up 52% thanks to increase in deliveries,
Slide 90: Colorado Division
Colorado Division Matt Osborn 90
Slide 91: Division Overview
Division Overview Colorado Division • Division Operations established in 2012 • Office located in Denver, Colorado • Operating in Denver Metro Area and Northern Colorado • Exponential growth in deliveries from 8 (2013), 57 (2014) and 128 (YTD 2015) • 47 employees, including sales and field • 6 activ
Slide 92: Colorado Market Overview
Colorado Market Overview Colorado Division Colorado Northern Front Range Market: Denver Metro Area – 7 Counties Northern Colorado – 2 Counties Population: Denver Metro Area – 2.9 Million Northern Colorado – 0.6 Million Median Resale Home: Denver Metro Area – $362,900 Northern Colorado – $323,243 Med
Slide 93: Colorado Market Metrics
Colorado Market Metrics Colorado Division 93 Source: John Burns Real Estate Consulting
Slide 94: Colorado Market Metrics
Colorado Market Metrics Colorado Division 94 Source: John Burns Real Estate Consulting
Slide 95: Lots Owned or Controlled
Lots Owned or Controlled (1) Colorado Division Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 1 Terrain 4000 Castle Rock 149 56 2 Terrain 3500 Castle Rock 67 46 3 Leyden Rock 4000 Arvada 51 21 4 Leyden Rock 5000 Arvada 67 50 5 Candelas 6000 Arvada 76 73 6 Candelas 3500 Arva
Slide 96: Community Overview Terrain – Castle Rock, CO
Community Overview Colorado Division Terrain – Castle Rock, CO 96
Slide 97: Community Overview Terrain – Castle Rock, CO
Community Overview Colorado Division Terrain – Castle Rock, CO • First Colorado division community to open, first orders in 2Q13 and first deliveries in 4Q13 • Two Distinct Neighborhoods: • Prelude Collection (3500 Series) • Debut Collection (4000 Series) • Square Footage Range: • Prelude Collection
Slide 98: Community Overview Candelas – Arvada, CO
Community Overview Colorado Division Candelas - Arvada, CO 98
Slide 99: Community Overview Candelas – Arvada, CO
Community Overview Colorado Division Candelas - Arvada, CO • Two Distinct Neighborhoods • Prelude Collection (3500 Series) • Encore Collection (6000 Series) • Square Footage Range: • Prelude Collection - 2,059 to 2,773 • Encore Collection - 2,955 to 4,299 • Base Price Range: • Prelude Collection - $
Slide 100: Financial Metrics – Colorado Division
Financial Metrics Colorado Division • Significant increase in orders and deliveries thanks • Significant home sales revenue and profit increases to the opening of 5 new communities in 2H14 due to higher volume of deliveries • Lower absorption rate due to higher priced product • Higher margins a func
Slide 101: Austin, Texas – Houston, Texas
Austin,Texas Will Holder Houston, Texas 101
Slide 102: Company Overview
Company Overview • Established in 1971 • Office located in Houston, Texas and soon to be Austin • 149 employees, including sales and field • 23 active selling locations as of 9/30/15 • LTM deliveries as of 9/30/15: 551 • Lots owned or controlled (1): 1,976 • ~#16 Houston builder by closings ~#8 Hous
Slide 103: Houston Market Overview
Houston Market Overview • Market made up of 9 counties • Area: Approximately 10,062 sq. miles • Population: Approximately 6.5M • Median Resale: $214,500 • Median New Home: $273,500 • There are (7) distinct business districts: • Downtown • The Medical Center • Uptown/The Galleria Trendmaker Projects
Slide 104: Market Overview
Market Overview Source: Greater Houston Partnership, Talking Points Q2/2015 104
Slide 105: Market Overview
Market Overview Source: Greater Houston Partnership, Talking Points Q2/2015 & US BLS, Unemployment Rates for Metropolitan Areas 105
Slide 106: Market Overview
Market Overview 106 Source: Fortune Magazine June 2015 & Greater Houston Partnership Research – “Corporate Headquarters” June 2015
Slide 107: Market Overview
Market Overview Source: Greater Houston Partnership, Talking Points Q2/2015 & Greater Houston Partnership, Employment Forecast December 2014 107
Slide 108: Market Overview
Market Overview Source: Trendmaker 2Q2015 Update by Metro Study 108
Slide 109: Market Overview
Market Overview Source: International Trade Administration, U.S. Metropolitan Area Exports 2014 ,The Port of Houston Authority’s Trade Statistics & Greater Houston 109 Partnership, Talking Points Q2/2015
Slide 110: Market Overview
Market Overview Source: Greater Houston Partnership- Talking Points Q2/2015, Greater Houston Partnership – Facts 2015, Colliers International - “Houston’s Healthcare 110 Arms Race” June 2015 & US Bureau of Labor and Statistics, July 2015
Slide 111: Houston Market Metrics
Houston Market Metrics 111 Source: John Burns Real Estate Consulting
Slide 112: Houston Market Metrics
Houston Market Metrics 112 Source: John Burns Real Estate Consulting
Slide 113: Lots Owned or Controlled
Lots Owned or Controlled (1) Lots Owned Total # of or Controlled Project Name City Lots as of 9/30/15 1 Sedona Lakes Pearland 24 13 1 Sedona Lakes Pearland 8 8 2 Southern Trails Pearland 41 13 2 Southern Trails Pearland 2 2 3 Pomona Manvel 10 10 3 Pomona Estates Manvel 39 39 4 Cross Creek Ranch 60'
Slide 114: Lots Owned or Controlled
Lots Owned or Controlled (1) Lots Owned The Reserve at Clear Lake City Total # of or Controlled Project Name City Lots as of 9/30/15 16 The Groves Humble 19 12 16 The Groves Humble 43 43 17 Hidden Arbor Cypress 33 33 17 Hidden Arbor Cypress 96 96 18 Clear Lake Houston 521 518 18 Clear Lake Houston 1
Slide 115: Option Highlights
Option Highlights Option Lots Lots Owned or Controlled • Land and land under development represents only $60 million, or approximately 2% of the Company’s total inventory • Typical options are in the most desirable master plan communities with life spans ranging from 5-15 years • Allows flexibility
Slide 116: Austin Market Overview
Austin Market Overview • Market made up of 5 counties • Area: Approximately 4,285 sq. miles • Population: Approximately 1.25M • Median Resale: $263,100 • Median New Home: $280,100 • Home Starts (as of June 2015): 11,333 • Closings (as of June 2015): 10,523 • Austin Home Sales (as of June 2015): 15,4
Slide 117: Financial Metrics
Financial Metrics • Orders down 13% YOY, inline with the broader • YTD 2015 margins of 18.8% roughly in line with Houston market, according to Metro Study Trendmaker’s 10-year average • 23 active communities represent $192 million in • Homebuilding operations remain profitable despite the inventory,
Slide 118: California and Consolidated Company Financial Metrics
California and Consolidated Company Financial Metrics Tom Mitchell, COO
Slide 119: Financial Metrics – California Divisions
Financial Metrics California Divisions • Aggressive community count growth has resulted in • Growth in deliveries has resulted in a 47% increase in big increase in orders and deliveries home sales revenue YTD • Absorption pace above 4.0 indicative of operational • Gross profit 49% higher YTD due to
Slide 120: Financial Metrics – California Divisions
Financial Metrics California Divisions • Absorption rate of 5.8 demonstrates strong demand • Gross margin profile reflects low land basis and for new housing and excellent market positioning organic price increases • Expect community count to grow as part of our • Significant legacy land position pr
Slide 121: Consolidated Company Financial Metrics
Consolidated Company Financial Metrics • 22% increase in home sales revenue driven by higher • Orders and deliveries higher thanks to improved closing volumes absorption rates and increased community count • 2015 gross margins expected to be approximately 21% for the full year Orders, Deliveries and
Slide 122: Question and Answers
TRI POINTE” R Oo Question and Answers ~S.LIFE INSPIRING HOMES. TRI POINTe” Y 2015 BUILDER OF THE YEAR AND 2014 DEVELOPER OF THE YEAR.
Slide 123: 2015 Investor Day – November 10, 2015
2015 Investor Day – November 10, 2015 Maracay Homes – Pardee Homes – Quadrant Homes – Trendmaker Homes – TRI Pointe Homes – Winchester Homes