Slide 1: Building a Best-in-Class Homebuilder
Exhibit 99.1 “Building a Best-in-Class Homebuilder” Investor Presentation August 2014
Slide 2: Forward Looking Statements / Additional Disclaimer
Forward Looking Statements / Additional Disclaimer 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 inc
Slide 3: Transaction Overview
Transaction Overview
Slide 4: Transaction Summary
Transaction Summary In November 2013, TRI Pointe Homes (“TPH” or “TRI Pointe”) and Weyerhaeuser Company (“Weyerhaeuser”) entered into a definitive agreement pursuant to which Weyerhaeuser Real Estate Company (“WRECO”) was combined with TRI Pointe in a “Reverse Morris Trust” transaction TRI Pointe is
Slide 5: Company Overview
ii Company Overview
Slide 6: Best-in-Class Executive Leadership Team
Best-in-Class Executive Leadership Team Working together for over 20 years, TRI Pointe senior management has significant experience running a large, geographically diverse, growth-oriented public homebuilder. Deep managerial talent at each operating division with key local relationships supports dyn
Slide 7: TRI Pointe Standalone Business Overview
TRI Pointe Standalone Business Overview Overview Geographic Footprint LTM as of June 30, 2014 Founded in 2009 by three partners who worked together for over 17 years at a notable Southwest regional builder Northern California Next generation homebuilder unburdened by legacy issues and Closings: Colo
Slide 8: WRECO Standalone Business Overview
WRECO Standalone Business Overview Overview Geographic Footprint LTM as of June 30, 2014 th Founded in 1970, WRECO was the 13 largest homebuilderin the U.S. byhomebuilding revenue in 2013 Closings: 342 Lots: 1,510 Operates five subsidiaries and primary brands in ten key markets – Key markets are Los
Slide 9: Leading Brand Names Targeted to Specific Markets
Leading Brand Names Targeted to Specific Markets Markets: Orange County, Los Angeles, San Diego, San Francisco Bay Area, Denver Market: Greater Puget Sound Area LTM Single-Family Closings: 452 LTM Single-Family Closings: 342 Lots Owned or Controlled: 3,828 Lots Owned or Controlled: 1,510 Markets: Lo
Slide 10: Synergy Opportunity is Meaningful
Synergy Opportunity is Meaningful TRI Pointe expects to achieve annual synergies of $21mm by 2015 and $30mm annually thereafter. Additionally, there is a significant opportunity to enhance stockholder value through executing a focused and disciplined homebuilding strategy. Purchasing leverage with i
Slide 11: Investment Highlights
Investment Highlights
Slide 12: A Powerful Combination of Homebuilding Brands
A Powerful Combination of Homebuilding Brands 1 Best-in-Class Management Team Leading a Top 10 National Homebuilder with Combined Equity Market Value of ~$2.1bn (1) 2 Significant Land Supply to Fuel Growth at the Right Point in the Housing Recovery 3 Complementary Footprint: Merchant Building Model
Slide 13: Top National Homebuilder
1 Top 10 National Homebuilder Equity Market Capitalization Companies with market capitalization greater than $1bn ($ in billions) #8 (1) LTM Closings Companies with market capitalization greater than $1bn #12 Source: Company filings and FactSet. Market data as of August 1, 2014 (1) Excluding shares
Slide 14: Significant Land Supply to Fuel Growth
2 Significant Land Supply to Fuel Growth Combined Lot Position Geographic Breakdown As of June 30, 2014 TRI Pointe WRECO Combined Company Market Owned Controlled Owned Controlled Total Lots % Owned Southern California 1,267 446 14,781 74 16,568 96.9% Northern California 932 505 1,372 -- 2,809 82.0%
Slide 15: Complementary California Footprint
3 Complementary California Footprint Primary California Markets ~3,150 lots, majority in Southern California, with ~70% owned / ~30% controlled Predominantly in highly desirable coastal markets Merchant builder model focused on predictable TRI POINTE Northern California cash flow and earnings Strong
Slide 16: Important Land Owner and Developer Partnerships
4 Important Land Owner and Developer Partnerships Diverse product expertise and premium brands will continue to make the combined company an attractive homebuilding partner for master plan communities Entitlement, land development and community planning expertise, which adds value to land through th
Slide 17: Lifestyle Builder Focused on Move-Up Segment
5 Lifestyle Builder Focused on Move-Up Segment Average Selling Price Quality Product Across the Spectrum (Last Reported Quarter, $ in ‘000s, companies with market cap > $1.0bn) TRI Pointe WRECO Executive Median: $368 Level Chantrea, San Jose Alta Del Mar, San Diego Move-Up Woodson, Playa Vista Monte
Slide 18: Leadership Positions in Long Term Growth Markets
6 Leadership Positions in Long Term Growth Markets Leading Local Presence Long Term Growth Markets John Burns Home Value Index Overall Target Segment Location Position Position Definition Pardee Homes San Diego #1 #1 $650K – $1.25MM LA County #15 #11 $450K – $700K Inland Empire #5 #1 $200K – $350K L
Slide 19: Attractive Gross Margin Profile
7 Attractive Gross Margin Profile Entitlement and development expertise enhance margin potential Long land position enables optionality for land sales to optimize cash flow and profit Focus on efficient operating cost structure ensures profitability flows through to bottom line Synergy opportunity w
Slide 20: Prudent Capitalization To Invest in Recovery
8 Prudent Capitalization To Invest in Recovery Pro forma Debt-to-Capital ratio of 42%, below peer median Expected new revolving credit facility to provide liquidity to invest in growth opportunities Debt-to-Capital (1) Most recent quarter; Companies with market capitalization greater than $1bn Media
Slide 21: Financial Overview
Financial Overview
Slide 22: Combined Financial Summary
Combined Financial Summary Home Closings (1) Home Sales Revenue (1) ($ in millions) Homebuilding Gross Profit (1)(4) Adj. EBITDA(2)(3)(4) ($ in millions) ($ in millions) % % 21.7% 20.1% 22.0% 11.1% 13.7% 13.5% Margin Margin Source: Company filings. (1) Excludes fee building operations for TRI Pointe
Slide 23: Second Quarter 2014 Financial Results
Second Quarter 2014 Financial Results TRI Pointe WRECO ($ in millions) 2Q14 2Q13 Y-O-Y Change ($ in millions) 2Q14 2Q13 Y-O-Y Change Orders 190 131 45.0% Orders 763 947 (19.4%) Closings 103 91 13.2% Closings 628 636 (1.3%) ASP ($ in 000's) $848 $522 62.4% ASP ($ in 000's) $493 $405 21.7% Total Reven
Slide 24: A Powerful Combination of Homebuilding Brands
A Powerful Combination of Homebuilding Brands Top 10 National Homebuilder Industry-Leading Management Plus Strong Local Market Presence Significant Land Supply to Fuel Growth at the Right Point in the Housing Recovery Portfolio of Quality Brands with Leadership Positions in Long-Term Growth Markets
Slide 25: Appendix
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Slide 26: WRECO Supplemental Financial Data
WRECO Supplemental Financial Data The unaudited selected historical financial data for WRECO included in this presentation are summary only and are not necessarily indicative of the results or the financial condition to be expected for the remainder of the year or any future date or period. These da
Slide 27: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Maracay Project Table As of June 30, 2014 Ending 6/30/2014 Year of Total Cumulative Sales Price First Number of Homes Homes Range (in County, Project, City Delivery Homes Delivered Lots Owned Backlog Delivered 000's) Phoenix Maricopa County: Verr
Slide 28: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Quadrant Project Table Ending As of June 30, 2014 6/30/2014 Year of Total Cumulative Sales Price First Number of Homes Homes Range (in County, Project, City Delivery Homes Delivered Lots Owned Backlog Delivered 000's) Washington King County: Sona
Slide 29: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Trendmaker Project Table Ending As of June 30, 2014 6/30/2014 Year of Total Cumulative Sales Price First Number of Homes Homes Range (in County, Project, City Delivery Homes Delivered Lots Owned Backlog Delivered 000's) Texas Brazoria County: Sed
Slide 30: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Winchester Project Table Ending As of June 30, 2014 6/30/2014 Year of Total Cumulative First Number of Homes Lots Homes Sales Price County, Project, City Delivery Homes Delivered Owned Backlog Delivered Range (in 000's) Maryland Anne Arundel Coun
Slide 31: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Winchester Project Table (cont’d) Ending As of June 30, 2014 6/30/2014 Year of Total Cumulative First Number of Homes Lots Homes Sales Price County, Project, City Delivery Homes Delivered Owned Backlog Delivered Range (in 000's) Virginia Chesterf
Slide 32: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Ending Pardee Project Table As of June 30, 2014 6/30/2014 Year of Total Cumulative First Number of Homes Homes Sales Price County, Project, City Delivery Homes Delivered Lots Owned Backlog Delivered Range (in 000's) California Inland Empire Regio
Slide 33: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Pardee Project Table (cont’d) Ending As of June 30, 2014 6/30/2014 Year of Total Cumulative First Number of Homes Homes Sales Price County, Project, City Delivery Homes Delivered Lots Owned Backlog Delivered Range (in 000's) San Diego Region San
Slide 34: WRECO Supplemental Financial Data (cont'd)
WRECO Supplemental Financial Data (cont’d) Six Months Pardee Project Table (cont’d) Ending As of June 30, 2014 6/30/2014 Year of Total Cumulative First Number of Homes Homes Sales Price County, Project, City Delivery Homes Delivered Lots Owned Backlog Delivered Range (in 000's) Northern California R
Slide 35: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures In this report, 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 management and investors
Slide 36: Reconciliation of Non-GAAP Financial Measures (cont'd)
Reconciliation of Non-GAAP Financial Measures (cont’d) The following table reconciles the ratio of debt-to-capital to the ratio of net debt-to-capital. We believe that the ratio of net debt-to-capital is a relevant financial measure for management and investors to understand the leverage employed in