Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — TRI Pointe Group — 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 Demand Drivers
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 transportat
Slide 5: Growth targets and strategy
•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-term assets owned by
Slide 6: A Family of Regional Homebuilders
A Family of Regional Homebuilders A Family of Regional Homebuilders LTM Orders: 4,142 LTM Deliveries: 3,726 LTM Home Sales Revenue: $2,066,816 LTM Average Sales Price: $555 Lots Owned or Controlled: 28,240 3-Year Goal: 5,100 – 5,400 Deliveries Market: Greater Puget Sound Area LTM Orders: 404 LTM Del
Slide 7: Land Development Company
Land Development Company Mike McMillen
Slide 8: Asset Locations
ASSET LOCATIONS San Francisco 2 3 7 5 6 4 San Diego Los Angeles Project Name Location Total Lots Target 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
Slide 9: Golden Valley
GOLDEN VALLEY City of Santa Clarita 9
Slide 10: Project Location
PROJECT LOCATION LAX LAX Downtown Los Angeles Downtown Los Angeles Simi Valley Simi Valley Lancaster Lancaster Palmdale Palmdale Burbank Airport Burbank Airport Golden Valley Golden Valley •Located in Santa Clarita •21 Miles from Burbank Airport •33 Miles from Downtown Los Angeles •37 Miles from LAX
Slide 11: Golden Valley Location Map
Golden Valley Skyline Ranch Five Knolls GOLDEN VALLEY LOCATION MAP 11
Slide 12: Area Amenities
AREA AMENITIES Via Princessa Metrolink Costco Terramar Retail Center Lowe’s, Target, PetSmart, Chipotle, Bed Bath & Beyond, Shell La Mesa Junior High 2.5 miles West API 835 Golden Valley High School 2 miles West API 772 Interstate 5 6 miles West Proposed Disney Studio 24 Hour Fitness SR-14 Golden Oa
Slide 13: Golden Valley Project Amenities
GOLDEN VALLEY PROJECT AMENITIES 13
Slide 14: Golden Valley Community Rec Area
GOLDEN VALLEY COMMUNITY REC AREA REAR PLAN- HOA •Fitness Center •Multi-Purpose Room •Indoor Kitchen •Bocce Ball •Entertainment Areas •Outdoor BBQ •Fire Pits •Large Lawn Area •Lap Pool •Kids Pool •Spa •Splash Pad 14
Slide 15: Golden Valley
GOLDEN VALLEY TRIPOINTE”,
Slide 16: Golden Valley Product Location Plan
GOLDEN VALLEY PRODUCT LOCATION PLAN 16
Slide 17: Golden Valley Architectural Programming
GOLDEN VALLEY ARCHITECTURAL PROGRAMMING Product Plan Unit Target # of Type Type Mix Size Stories Bed Bath Den Bonus Garage Active Adult 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 Plan 1X 17 2,350 2 3 2.5 Std Std 2 Plan 2X 18 2,550 2 3 2.5
Slide 18: Golden Valley Architecture Inspiration Images
GOLDEN VALLEY ARCHITECTURE INSPIRATION IMAGES 18
Slide 19: Golden Valley New Home Competition
GOLDEN VALLEY NEW HOME COMPETITION Source: Meyers Research
Slide 20: Golden Valley Key Takeaways
GOLDEN VALLEY 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 of
Slide 21: Skyline Ranch
SKYLINE RANCH County of Los Angeles 21
Slide 22: Skyline Ranch Location Map
Golden Valley Skyline Ranch Five Knolls SKYLINE RANCH LOCATION MAP 22
Slide 23: Area Amenities Skyline Ranch
Canyon High School Leona Cox Elementary Sierra Vista Junior High Canyon Country Plaza Ralph’s, Food 4 Less, Restaurants, Big 5 Sporting Goods, Pharmacies I-5 Freeway 7 Miles West Valencia City Center Employment Opportunities 6 Miles West Valencia Westgate Mall 6 Miles West Skyline Ranch SR-14 AREA A
Slide 24: Project Aerial Skyline Ranch
PROJECT AERIAL SKYLINE RANCH 24
Slide 25: Skyline Ranch Plan Comparison
SKYLINE RANCH PLAN COMPARISON 25
Slide 26: Product Mix by PA Breakdown
PRODUCT MIX BY PA BREAKDOWN Market Rate Age Qualified SKYLINE RANCH Existing Proposed Product Type Yield Mix Yield Mix Grayson 138 11% 45 x 90 Lot 189 16% 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%
Slide 27: Skyline Ranch Key Takeaways
SKYLINE RANCH 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 lo
Slide 28: Banning
BANNING City of Banning TRIPOINTE »
Slide 29: Project Location
•30 miles east of Riverside •27 miles west of Palm Springs •80 miles east of Los Angeles PROJECT LOCATION Banning Banning BANNING 29
Slide 30: Area Amenities
Sun Lakes Village Shopping Center Home Depot, Walmart, Bed Bath & Beyond, Albertsons, Food 4 Less, Best Buy, Kohl’s Cabazon Outlet Mall 8 Miles East Sundance Elementary San Gorgonio Middle School Glen View High School Banning Transit Bus Stop Banning Project Sundance AREA AMENITIES Anna Hause Elemen
Slide 31: Banning
a <4 = < 5 a 8 a BANNING TRI POINTE
Slide 32: Banning
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Slide 33: z S a wi = a TRIPOINTE’,,
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Slide 34: Product Mix by PA Breakdown
Existing Proposed Product Type Yield Mix Yield Mix 6 Pack SFD 572 13% Cluster 1,106 26% 386 9% 38 x 110 Lot 208 5% 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 13% 557 13% Subtotal 4,318 100% 3,602 83%
Slide 35: Banning Key Takeaways
BANNING 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, m
Slide 36: Maracay Homes
Add Photo 36 Andy Warren
Slide 37: 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 37 Company Overview (1) In
Slide 38: Phoenix Market Overview
•Population: 4.5 million – 12th largest MSA & one of fastest growing in US •Median resale: $217,000 •Median new home: $293,000 •Maracay Homes targets the premium segment of the production housing market, which centers in three areas: Southeast Valley, West Valley, Northwest Valley Southeast Valley W
Slide 39: Tucson Market Overview
•Population: 1.0 Million. Second largest city in Arizona •2 hours southeast of Phoenix •Median resale: $177,000 •Median new home: $251,000 •Maracay Homes targets the premium segment of the production housing market, which is primarily centered in northwest Tucson, specifically the Tangerine Road cor
Slide 40: Employers by County
Employers by County OrganizationJobsOrganizationJobsIntel Corporation11,960Banner Health5,595 Banner Health11,426Honeywell3,847 Arizona State University9,360American Express3,095 Mesa Unified School District 48,220USAA Phoenix Office2,900 Wells Fargo7,533Walmart2,862 Walmart5,893Wells Fargo2,768 Hon
Slide 41: Phoenix Market Metrics
Phoenix Market Metrics Source: John Burns Real Estate Consulting 41
Slide 42: Phoenix Market Metrics
Phoenix Market Metrics Source: John Burns Real Estate Consulting 42
Slide 43: Tucson Market Metrics
Tucson Market Metrics Source: John Burns Real Estate Consulting 43
Slide 44: Tucson Market Metrics
Tucson Market Metrics Source: John Burns Real Estate Consulting 44
Slide 45: Lots Owned or Controlled – Phoenix
Lots Owned or Controlled (1) Phoenix, Arizona 45 Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/151Verrado TildenBuckeye102112Verrado PalisadesBuckeye63503Verrado VictoryBuckeye98894Artesian RanchChandler90415Vaquero RanchChandler74176Maracay at Layton LakesChandler47467Sendera P
Slide 46: Lots Owned or Controlled – Tucson
Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 Tucson, Arizona 46 Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/1525Tortolita VistasMarana432426Rancho del CobreOro Valley683927Desert Crest - CP VistosoOro Vall
Slide 47: 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 phase and anticipates rolling into future phases for
Slide 48: 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 2,200-2,800 sq ft •Lot size min 70’x120’ (8,400 sq ft) •Bas
Slide 49: 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, fishing lakes, white rail fences. •Farmhouse inspired
Slide 50: 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 price range $355K - $424K •Site currently in final
Slide 51: Maracay Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 100 200 300 400 500 600 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 58% YTD14 YTD15 16.4 17.3 Average Selling Communities HB
Slide 52: Winchester Homes
fj) WINCHESTER} 4) HOMES “} 2015 BUILDER OF THE YEAR AND 2014 DEVELOPER OF THE YEAR.
Slide 53: Company Overview
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): 2,576 Add Logo here C:\
Slide 54: DC Market Overview
Population: •Baltimore: 2,800,100 •Washington: 6,105,200 Median Resale •Baltimore: $236,000 •Washington: $355,000 Median New Home •Baltimore: $400,900 •Washington: $481,800 New Home Markets are Divided into 6 Primary Submarkets Located off Main Transportation Corridors DC Market Overview Dulles Toll
Slide 55: Top Employers by MSA
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. 14,000 WAMATA 12,900 N
Slide 56: Washington MSA Market Metrics
Washington MSA Market Metrics Source: John Burns Real Estate Consulting 56
Slide 57: Washington MSA Market Metrics
Washington MSA Market Metrics Source: John Burns Real Estate Consulting 57
Slide 58: Baltimore MSA Market Metrics
Baltimore MSA Market Metrics Source: John Burns Real Estate Consulting 58
Slide 59: Baltimore MSA Market Metrics
Baltimore MSA Market Metrics Source: John Burns Real Estate Consulting 59
Slide 60: Lots Owned or Controlled – Virginia
Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 Add Logo here Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/151Reserve at Waples MillOakton2872Stuart Mill & Timber LakeOakton19153Stable HillGlen Allen4914Villag
Slide 61: Lots Owned or Controlled – Maryland
Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 Add Logo here Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/151Hawthornes GrantArnold0112Watson's GlenMillersville1031013Landsdale Village SFDMonrovia2222144Lands
Slide 62: Cabin Branch – Clarksburg, MD
Cabin Branch – Clarksburg, MD Add Logo here •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) •Designed as a mixed use, transit oriented and pedestrian friendly neighborhood •Winchester owns
Slide 63: Community Overview Cabin Branch
Community Overview Cabin Branch – Clarksburg, MD 63
Slide 64: Cabin Branch Community Overview
•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: $375K to $390K 8EFE9889-2590-0D9C-E29F6E8AED40F348.jpg 7B0F
Slide 65: Potomac Highlands – Potomac, MD
Potomac Highlands - Potomac, MD Add Logo here cabin1.jpg camberley clear.jpg •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 ne
Slide 66: Potomac Highlands – Potomac, MD
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 Community Overview 66
Slide 67: Winchester Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0 50 100 150 200 250 300 350 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 23% YTD14 YTD15 19.1 13.5 Average Selling Communities HB Reve
Slide 68: Quadrant Homes
QUADRANT HOMES Ken Krivanec
Slide 69: 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 •Lots owned or controll
Slide 70: Seattle MSA Market Overview
Seattle MSA Market Overview County Population Unemployment Rate Median 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 County Market Areas: •Market made up of 6 c
Slide 71: Seattle Market Metrics
Seattle Market Metrics Source: John Burns Real Estate Consulting 71
Slide 72: Seattle Market Metrics
Seattle Market Metrics Source: John Burns Real Estate Consulting 72
Slide 73: Top 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 Clinic 2,500 Starbu
Slide 74: Lots Owned or Controlled
Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/151Skagit HighlandsMt Vernon423251Skagit Clearwater CourtMt Vernon11111Skagit Surplus Pod EMt Vernon444Kings Corner
Slide 75: Lots Owned or Controlled
Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/1524English Landing P1Redmond505012Heathers Ridge SouthRedmond8827Cedar LandingNorth Bend1231232842nd Avenue Townhom
Slide 76: 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 margins for this project is 23% Heathers Ridge – Kirkland,
Slide 77: 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: •Highly regarded schools •Easy commute to Microsoft •Redm
Slide 78: Quadrant Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 50 100 150 200 250 300 350 400 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 23% YTD14 YTD15 12.8 10.8 Average Selling Communi
Slide 79: Las Vegas Division
Las Vegas Division 79 Klif Andrews
Slide 80: Division Overview
Division Overview •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 field •11 active selling com
Slide 81: Las Vegas Market Overview
•Market made up of only one county, Clark County •Area: Approx 600 sq miles •Population: Approx 2,000,000 •Median Resale: $193,200(1) •Median New Home: $305,047(1) •New home market is divided into 6 primary submarkets located off main transportation corridors •Pardee currently operates in 5 of these
Slide 82: Las Vegas Market Metrics
Las Vegas Market Metrics Source: John Burns Real Estate Consulting Las Vegas Division 82
Slide 83: Las Vegas Market Metrics
Las Vegas Market Metrics Source: John Burns Real Estate Consulting Las Vegas Division 83
Slide 84: Top Employers by County
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 Employers by County Las Vegas Division Source: (1) UNL
Slide 85: Lots Owned or Controlled – Las Vegas
Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015. Las Vegas Division Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/151LivingSmart at Eldorado RidgeLas Vegas169222LivingSmart at Eldorado HeightsLas Vegas135243Liv
Slide 86: 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 active project base sales prices range from $289K to $591K C:\Us
Slide 87: 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 1,825 to 4,000 •Current base sales prices range from $220K to $
Slide 88: Skye Canyon Master Plan
Skye Canyon Master Plan Las Vegas Division Community Overview 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 sales pric
Slide 89: Las Vegas Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 50 100 150 200 250 300 350 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 32% YTD14 YTD15 7.2 10.2 Average Selling Communities
Slide 90: Colorado Division
Colorado Division 90 Matt Osborn
Slide 91: Division Overview
91 •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 active selling locations as of 9/30/15 •LTM
Slide 92: Colorado Market Overview
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 Median New Home: Denver Metro Area – $482,133
Slide 93: Colorado Market Metrics
Colorado Market Metrics Source: John Burns Real Estate Consulting Colorado Division 93
Slide 94: Colorado Market Metrics
Colorado Market Metrics Source: John Burns Real Estate Consulting Colorado Division 94
Slide 95: Lots Owned or Controlled – Colorado
Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 95 Colorado Division Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/151Terrain 4000Castle Rock149562Terrain 3500Castle Rock67463Leyden Rock 4000Arvada51214Leyden R
Slide 96: Terrain – Castle Rock, CO
96 Terrain – Castle Rock, CO Colorado Division Community Overview
Slide 97: Terrain Community Overview
97 Community Overview •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 - 2,059 to 2,311 •Debut Collection - 1,871 to
Slide 98: Candelas – Arvada, CO
Colorado Division Community Overview Candelas - Arvada, CO 98
Slide 99: Candelas – Arvada, CO
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 - $370K to $430K •Encore Collection - $560K to $
Slide 100: Colorado Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 20 40 60 80 100 120 140 160 180 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 (1) 137% YTD14 YTD15 1.7 6.4 Average Selling Com
Slide 101: Austin, Texas Houston, Texas
Austin,Texas Houston, Texas 101 Will Holder
Slide 102: 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 Houston builder by revenues
Slide 103: 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 •Energy Corridor •Greenspoint •Greenway Plaza •Westch
Slide 104: Market Overview
Market Overview 104 Source: Greater Houston Partnership, Talking Points Q2/2015
Slide 105: Market Overview
105 Market Overview Source: Greater Houston Partnership, Talking Points Q2/2015 & US BLS, Unemployment Rates for Metropolitan Areas
Slide 106: Market Overview
106 Market Overview Source: Fortune Magazine June 2015 & Greater Houston Partnership Research – “Corporate Headquarters” June 2015
Slide 107: Market Overview
107 Market Overview Source: Greater Houston Partnership, Talking Points Q2/2015 & Greater Houston Partnership, Employment Forecast December 2014
Slide 108: Market Overview
108 Market Overview Source: Trendmaker 2Q2015 Update by Metro Study
Slide 109: Market Overview
109 Market Overview Source: International Trade Administration, U.S. Metropolitan Area Exports 2014 ,The Port of Houston Authority’s Trade Statistics & Greater Houston Partnership, Talking Points Q2/2015
Slide 110: Market Overview
110 Market Overview Source: Greater Houston Partnership- Talking Points Q2/2015, Greater Houston Partnership – Facts 2015, Colliers International - “Houston’s Healthcare Arms Race” June 2015 & US Bureau of Labor and Statistics, July 2015
Slide 111: Houston Market Metrics
Houston Market Metrics Source: John Burns Real Estate Consulting 111
Slide 112: Houston Market Metrics
Houston Market Metrics Source: John Burns Real Estate Consulting 112
Slide 113: Lots Owned or Controlled – Houston
113 Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/151Sedona LakesPearland24131Sedona LakesPearland882Southern TrailsPearland41132Southern TrailsPearland223PomonaM
Slide 114: Lots Owned or Controlled
The Reserve at Clear Lake City 114 Lots Owned or Controlled (1) (1) Includes land under a purchase contract or option contract as of September 30, 2015 Project NameCityTotal # of LotsLots Owned or Controlled as of 9/30/1516The GrovesHumble191216The GrovesHumble434317Hidden ArborCypress333317Hidden A
Slide 115: Option Highlights
Option Highlights •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 and lowers risk due to short horizon •Lo
Slide 116: 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): 15,485 •Supply of Inventory: 2.8 mo
Slide 117: Trendmaker Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 1.0 1.5 2.0 2.5 3.0 3.5 4.0 0 50 100 150 200 250 300 350 400 450 500 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 (13%) YTD14 YTD15 23.5 26.0 Average Selling Commu
Slide 118: California and Consolidated Company Financial Metrics
California and Consolidated Company Financial Metrics Tom Mitchell, COO
Slide 119: California Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 100 200 300 400 500 600 700 800 900 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 (1) 84% YTD14 YTD15 10.5 20.6 Average Sellin
Slide 120: Pardee Orders, Deliveries and Margins
[VALUE] [VALUE] [VALUE] [VALUE] [VALUE] [VALUE] 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 0 100 200 300 400 500 600 700 YTD14 YTD15 Orders Deliveries Absorption Orders, Deliveries and Absorption Rate For the nine months ended September 30, 2014 and 2015 16% YTD14 YTD15 13.1 12.6 Average Selling Co
Slide 121: Consolidated Orders, Deliveries and Margins
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