Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Investor Day (May 2022)
102 slides from Tri Pointe Homes's investor day presentation, May 26, 2022
Slide 1: 2022 Investor and Lender Day
2022 Investor and Lender Day May 26, 2022
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: Presentation Agenda
Welcome Current Market Dynamics - Mortgage & Backlog Management The Tri Pointe Difference - Land Acquisition - To-Be-Built & Spec Strategy Presentation Agenda - Virtual Sales Tools - Design Studios and Options L and Position and Delivery Growth Projections Division Spotlight and Case Studies Drivers
Slide 4: Current Market Dynamics
Current Market Dynamics
Slide 5: Housing–Strong Fundamentals for Long-Term Success
Current Market Dynamics Housing–Strong Fundamentals for Long-Term Success AMIDST HIGHER INTEREST RATES, INFLATION AND SUPPLY CHAIN CHALLENGES Strong job growth, low unemployment, rising incomes, homeowner equity, rising rents Demographics: 72 Million 1 67 Million 2 $61 Trillion 3 57% 4 3% 4 50% 4 Tr
Slide 6: Housing–Strong Fundamentals for Long-Term Success
Current Market Dynamics Housing–Strong Fundamentals for Long-Term Success AMIDST HIGHER INTEREST RATES, INFLATION AND SUPPLY CHAIN CHALLENGES Current low resale supply has increased new home market share L imited new home supply. Tri Pointe’s focus is on core markets, typically land constrained with
Slide 7: Mortgage & Backlog Management
Current Market Dynamics Mortgage & Backlog Management
Slide 8: Mortgage Market Update
Current Market Dynamics Mortgage & Backlog Mortgage Market Update Management How do rising rates impact Tri Pointe Homes? - Well-qualified backlog - Successful rate lock programs – 55% of Tri Pointe Connect (affiliated mortgage company) H2 2022 deliveries are locked as of April 30, 2022 - Fixed vs.
Slide 9: Tri Pointe Homes Homebuyer Buying Power
Current Market Dynamics Mortgage & Backlog Management Tri Pointe Homes Homebuyer Buying Power Average homebuyer financing with Tri Pointe Connect (77% of total backlog) as of April 30, 2022: - Average annual household income of $174,000 - Average debt-to-income ratio of 40% - Average FICO score of 7
Slide 10: Pre-qualification Process Through Tri Pointe Connect
Current Market Dynamics Mortgage & Backlog Management Tri Pointe Homes Pre-qualification Process Through Tri Pointe Connect 1. 2. 3. Sales Homebuyer Tri Pointe 4. and marketing submits their Connect reviews Pre-qualification communicates online pre-qualification application, runs letter provided the
Slide 11: Pre-qualification Process Through Tri Pointe Connect
Current Market Dynamics Mortgage & Backlog Tri Pointe Homes Pre-qualification Process Management Through Tri Pointe Connect 5. 8. 6. 7. Tri Pointe Assessment Homebuyer details provided Homes are Connect pre- sold to pre- pre-qualification qualification to Tri Pointe status is updated Homes sales qua
Slide 12: Backlog Management Process
Current Market Dynamics Mortgage & Backlog Management Backlog Management Process A Risk Rating is assigned and updated in our CRM system for each homebuyer - High, Medium, Low Risk High Risk (13% of current backlog) - Factors include home-to-sell contingency, down-payment gift or overseas funds, dep
Slide 13: Long-term Rate Locks Through Tri Pointe Connect
Current Market Dynamics Mortgage & Backlog Long-term Rate Locks Through Tri Pointe Connect Management Rate lock terms up to 270 days on most loan programs The mechanics of a long-term lock - Interest rates offered are based on current 60-day lock with a rate add-on to establish the ceiling interest
Slide 14: The Tri Pointe Difference: Land Acquisition
The Tri Pointe Difference Land Acquisition
Slide 15: Disciplined Underwriting
The Tri Pointe Difference Land Acquisition Disciplined Underwriting Current costs Historical Core ‘A’ absorptions and pricing locations 3-4 per (no inflation) month Target Variable value relative gross margins to market based on risk profiles 15
Slide 16: Excellent Diversified Pipeline
The Tri Pointe Difference Land Acquisition Excellent Diversified Pipeline Own and Control 100% of Land to Meet Land Owned vs. Land Controlled Planned Deliveries Through 2024 Planned homes consist of predominantly Current 53% vs. 47% attainably priced product targeting ntry-Level E Future Target 40%
Slide 17: Submarket Assessment Example
The Tri Pointe Difference Land Acquisition Submarket Assessment Example Tri Pointe Homes Arizona - Internal Submarket Assessment Submarket Employment Income Supply/Demand Lifestyle Overall East Valley (Near) A+ A A+ A+ A+ North Phoenix A A+ A A A Northwest Valley B A A B- B+ Central & South A C C+ B
Slide 18: Homebuyer Segmentation
The Tri Pointe Difference Land Acquisition Homebuyer Segmentation Leverage largest consumer information database in the U.S., 120M households updated quarterly 11 homebuyer segments reflect 90% of Tri Pointe’s homebuyers in the last twelve months Top 4 homebuyer segments in the last 12 months repres
Slide 19: To-Be-Built & Spec Strategy
The Tri Pointe Difference To-Be-Built & Spec Strategy
Slide 20: To-Be-Built & Spec Strategy
The Tri Pointe Difference To-Be-Built & To-Be-Built & Spec Strategy Spec Strategy Balanced approach to spec and to-be-built homes - Currently achieving 50-50 overall goal - Mix may be higher or lower by community or month To-Be-Built home personalization - Community options program designed for the
Slide 21: Virtual Sales Tools
The Tri Pointe Difference Virtual Sales Tools
Slide 22: Virtual Sales Tools
The Tri Pointe Difference Virtual Sales Tools Virtual Sales Tools Self-service and guided virtual sales tools are used throughout the life of a community irtual street scene renderings and V fly-overs Virtual reality home tours Interactive floorplans with structural options pricing Home interior fin
Slide 23: Virtual Sales Tools
The Tri Pointe Difference Virtual Sales Tools 23
Slide 24: Virtual Sales Tools Benefits and Results
The Tri Pointe Difference Virtual Sales Tools Virtual Sales Tools Benefits New Neighborhood YTD Results* Reduction in physical model homes 91% of new neighborhoods bility to start sales ahead of model A generated orders pre-model completion home completion using virtual sales tools Lower broker atta
Slide 25: Sales and Marketing Expense
The Tri Pointe Difference Virtual Sales Tools Sales and Marketing Expense Broker Expense and Broker Attachment Rate Sales and Marketing Expense (For the three-year-period ended April 30, 2022) (% of Homebuilding Revenue) (For the three-year-period ended April 30, 2022) 2.8% 90% 2.6% 12.0% 2.6% 80% 2
Slide 26: Design Studios and Options
The Tri Pointe Difference Design Studios and Options
Slide 27: Best-in-Class Design Studios
The Tri Pointe Difference Design Studios and Options Best-in-Class Design Studios 27
Slide 28: Slide 28
Slide 29: Online Design Studio
The Tri Pointe Difference Design Studios and Options Online Design Studio The digital design journey Online Design Studio (Envision) - Pricing transparency Creating a wish list - Prepared homebuyers - Able to research warranty and product awareness within the Online Design Studio 29
Slide 30: Finishes Visualizer
The Tri Pointe Difference Design Studios and Options Finishes Visualizer 30
Slide 31: Collections Strategy
The Tri Pointe Difference Design Studios Collections Strategy and Options Entry-Level and select Move-Up communities Visualizer to visualize whole scene changes and compare One appointment to finalize reduces cycle time Classic I Timeless II 31
Slide 32: Historical and Forward-Looking Option Results
The Tri Pointe Difference Design Studios Historical and Forward-Looking Option Results and Options Deliveries and Option Gross Margins Total and Per Homesite Option Revenue (in thousands) 8,000 40.0% $500,000 $474,280 $80 6,188 6,650 $450,000 $425,580 $78 7,000 39.5% 38.8% $400,000 $371,029 $76 6,00
Slide 33: Land Position and Delivery Growth Projections
Land Position and Delivery Growth Projections
Slide 34: Strong Land Position to Fuel Growth
Land Position and Delivery Growth Strong Land Position to Fuel Growth Projections Owned or controlled nearly 42,000 lots as of March 31, 2022, of which 47% are controlled We own or control 100% of the land needed to meet our planned deliveries through 2024 xpect to open a total of approximately 250
Slide 35: Lot Summary
Land Position and Delivery Growth Lot Summary Projections AS OF MARCH 31, 2022 Owned Controlled(1) Total Lots % Controlled otal lots have increased by 57% over T Arizona 1,536 2,742 4,278 64% the past three years with an emphasis California 10,841 3,385 14,226 24% on growing our Central and East Nev
Slide 36: Increased Geographic Diversity and Controlled Lot Percentage
Land Position and Delivery Growth Projections Increased Geographic Diversity and Controlled Lot Percentage AS OF MARCH 31, 2022 AS OF MARCH 31, 2019 % of Total Lots % Owned vs Controlled % of Total Lots % Owned vs Controlled 6% 15% 15% 12% 52% 47% 53% 32% 82% 85% West Central East Owned Controlled W
Slide 37: Active Selling Communities
Land Position and Delivery Growth Active Selling Communities Projections 2021 Actual % 2022 Plan % 2023 Plan % 2024 Plan % Arizona 12 11% 9 6% 20 10% 15 7% California 41 37% 59 38% 58 30% 50 24% Nevada 9 8% 7 5% 11 6% 9 4% Washington 5 4% 5 3% 6 3% 9 4% West Total 67 60% 80 52% 95 49% 83 40% Colorad
Slide 38: New Home Deliveries
Land Position and Delivery Growth New Home Deliveries Projections 2021 Actual % 2022 Plan % 2023 Plan % 2024 Plan % Arizona 788 13% 825 12% 725 9% 750 9% California 2,608 42% 2,475 37% 2,950 37% 2,625 32% Nevada 527 9% 530 8% 600 8% 615 7% Washington 296 5% 200 3% 275 3% 260 3% West Total 4,219 68%
Slide 39: Average Sales Price
Land Position and Delivery Growth Average Sales Price Projections DOLLARS IN THOUSANDS 2021 Actual 2022 Plan 2023 Plan 2024 Plan Arizona $677 $750 $675 $645 California $664 $750 $725 $700 Nevada $637 $735 $635 $610 Washington $986 $985 $800 $825 West Total $686 $760 $710 $685 Colorado $606 $675 $615
Slide 40: Sean Ricks, Division President, Dallas-Fort Worth
Sean Ricks Division President Dallas-Fort Worth
Slide 41: Dallas Fort-Worth Market Overview
Dallas-Fort Worth Division Dallas Fort-Worth Market Overview Annualized existing Annualized new Median Median home closings home closings price household income existing home $$$$$$$$$ $381,044 $$$$$$$$$ vs. new home $$$$$$$$$ $397,635 112,686 44,931 $80,458 Single-family permits MONTHS Est. months
Slide 42: 2Q21-1Q22 New Home Starts-DFW MSA
Dallas-Fort Worth 2Q21-1Q22 New Home Starts-DFW MSA Division Active TPH Neighborhoods Future TPH Neighborhoods Source: Zonda; eSpatial Shading indicates locations with 99+ new home starts between 2Q 2021 and 1Q 2022 42
Slide 43: Lot Summary-Dallas-Fort Worth Division
Dallas-Fort Worth Division Lot Summary-Dallas-Fort Worth Division AS OF MARCH 31, 2022 Owned or controlled 3,582 lots in core submarkets Owned 1,098 Over 30% of lots were contracted in 2020 or prior argeting 28 new community openings from 2022 T through 2024 Controlled 2,484 ew communities largely f
Slide 44: Case Study: Premium Design at the Entry-Level
Case Study Premium Design at the Entry-Level
Slide 45: The Opportunity: Harvest by Hillwood
Dallas Fort-Worth Division The Opportunity Case Study Harvest by Hillwood allas Builders Association award-winning lifestyle D community - Master-planned community of the Year ‘17, ‘19, ‘22 - People’s Choice Community of the Year ‘22 Highly rated, onsite schools Easy commute to major employment cent
Slide 46: The Challenge: The Retreat
Dallas Fort-Worth Division The Challenge Case Study The Retreat Develop product and density to: - Achieve low to mid $300K base price - Approx. 500 Units (~8 units/acre) 46
Slide 47: The Challenge: The Retreat
Dallas Fort-Worth Division The Challenge Case Study The Retreat Develop product and density to: - Achieve low to mid $300K base price - Approx. 500 Units (~8 units/acre) - Bring in new, innovative home designs to differentiate from “Texas traditional” competitors - Focus on outdoor livability Texas
Slide 48: Homebuyer Segmentations
Dallas Fort-Worth Division Homebuyer Segmentations Case Study 35’ SF Front Entry 2-pack Duplex • Anticipated consumer groups: • Anticipated consumer groups: Singles • Anticipated consumer groups: Singles & Couples; Growing Families; & Couples; School Aged Families; and Singles & Couples and Growing
Slide 49: Tri Pointe Dallas Fort-Worth Position
Dallas Fort-Worth Division Tri Pointe Dallas Fort-Worth Position Case Study 213 Lots (½ of the lots in The Retreat) on a quarterly lot takedown Square Footage Bands - Duplex: 1,658 to 2,098 - 2-Pack: 1,866 to 2,330 - 35’ FE: 2,125 to 2,762 Projected Average Sales Price Range: $400K-$525K Projected G
Slide 50: Selected Financial Data Dallas Fort-Worth Division
Dallas Fort-Worth Division Historical and Forward-Looking Selected Financial Data Dallas Fort-Worth Division 2021 -2024 Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As of and for the years ended December 31, 2021, 2022, 2023 and 2024) (As of and for the years
Slide 51: Bryan Havel, Division President, Austin
Bryan Havel Division President Austin
Slide 52: Austin Market Overview
Austin Division Austin Market Overview Annualized existing Annualized new Median Median home closings home closings price household income existing home $$$$$$$$$ $499,995 $$$$$$$$$ vs. new home $$$$$$$$$ $410,400 41,508 20,828 $90,900 Single-family permits MONTHS Est. months MONTHS Est. vacant (12
Slide 53: 2Q21-1Q22 New Home Starts-Austin MSA
Austin Division 2Q21-1Q22 New Home Starts-Austin MSA Active TPH Neighborhoods Future TPH Neighborhoods Source: Zonda; eSpatial Shading indicates locations with 99+ new home starts between 2Q 2021 and 1Q 2022 53
Slide 54: Lot Summary-Austin Division
Austin Division Lot Summary-Austin Division AS OF MARCH 31, 2022 Owned or controlled 2,678 lots in core submarkets Owned 1,404 Over 50% of lots were contracted in 2020 or prior argeting 14 new community openings from 2022 T through 2024 Controlled 1,274 ew communities largely focused on the Entry-Le
Slide 55: Case Study: Premium Design Drives Results
Case Study Premium Design Drives Results
Slide 56: Bryson Community Summary
Austin Division Case Study Bryson Community Summary Planned community with ~1,100 lots by Johnson Development Located in Leander, TX about 30 minutes north from downtown Austin (#4 sub-market in the MSA) Highly amenitized community with future onsite elementary school 56
Slide 57: Bryson Community Map
Austin Division Case Study Bryson Community Map ri Pointe section for 60 lots in own T section across from amenity center and future school site nique “wide-shallow” lots that U measure 60ft wide by 90ft deep (roughly 35ft shorter than typical lot) 57
Slide 58: Product Strategy
Austin Division Case Study Product Strategy Could we obtain premium pricing over competing builders and overcome the shallow lot size by offering a premium product? 50ft wide by 55-58ft deep homes to fit on the wide and shallow lots Resulted in small 12-15ft backyards he challenge: differentiate pro
Slide 59: Elevation Design
Austin Division Case Study Elevation Design Competitor 0 x 90 lot 6 5/50 x 125 lot 4 (50ft wide plans) (35 & 40ft wide plans) pgraded stone/ U stucco elevations rick/stucco B elevations 10ft high ceilings 9ft high ceilings L arger and more expansive maller and fewer S windows windows 3 Bed | 2.5 Bat
Slide 60: Kitchen and Patio Design
Austin Division Case Study Kitchen and Patio Design Competitor 2” 4 6” 3 kitchen kitchen cabinets cabinets 1 8 x 9 x7 9 covered covered patio patio 60
Slide 61: Primary Suite Design
Austin Division Case Study Primary Suite Design Competitor rimary P rimary P walk-in tub/ shower shower combo 61
Slide 62: Results
Austin Division Results Case Study New product was a grand slam with our homebuyers, who instantly felt the openness and premium quality of our offering. Biggest Differentiators: The Numbers: Upgraded elevations ~$30k+ above competitor on base pricing 10ft ceilings and 8ft doors ~$10k higher in lot
Slide 63: Selected Financial Data Austin Division
Austin Division Historical and Forward-Looking Selected Financial Data Austin Division 2021 -2024 Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As of and for the years ended December 31, 2021, 2022, 2023 and 2024) (As of and for the years ended December 31, 20
Slide 64: Joe Mandola, Division President, Houston
Joe Mandola Division President Houston
Slide 65: Houston Market Overview
Houston Division Houston Market Overview Annualized existing Annualized new Median Median home closings home closings price household income existing home $$$$$$$$$ $328,100 $$$$$$$$$ vs. new home $$$$$$$$$ $316,000 113,192 42,996 $78,100 Single-family permits MONTHS Est. months MONTHS Est. vacant (
Slide 66: 2Q21-1Q22 New Home Starts-Houston MSA
Houston Division 2Q21-1Q22 New Home Starts-Houston MSA Active TPH Neighborhoods Future TPH Neighborhoods Source: Zonda; eSpatial Shading indicates locations with 99+ new home starts between 2Q 2021 and 1Q 2022 66
Slide 67: Lot Summary-Houston Division
Houston Division Lot Summary-Houston Division AS OF MARCH 31, 2022 Owned or controlled 5,207 lots in core submarkets Owned 2,061 Over 70% of lots were contracted in 2020 or prior argeting 28 new community openings from 2022 T through 2024 Controlled 3,146 ew communities largely focused on the Entry-
Slide 68: Case Study: Joint Ventures
> Case Study Joint Ventures
Slide 69: Joint Ventures
Houston Division Case Study Joint Ventures We have partnered with other builders in Houston to collectively control over 6,500 lots in core locations. The advantages of builder-to-builder JV: De-risk large land purchases with a 50/50 partner llows us to pursue project debt on the JV to lower upfront
Slide 70: Joint Venture Summary
Houston Division Case Study Joint Venture Summary # Community Name Contract Date # Acres # Lots Lot Widths % to Market** 1 Woodson’s Reserve May-18 940 1,800 45, 50, 60, 70, 80 -29% 2 Mason Woods Aug-19 300 1,400 40, 45, 50 -14% 3 Lakes at Creekside Sep-19 116 357 45, 50, 60 -24% 4 Pecan Ridge Oct-1
Slide 71: Lakes at Creekside
Lakes at | LAKES at Cre
Slide 72: Lakes at Creekside - Location Map
Houston Division Case Study Lakes at Creekside - Location Map 72
Slide 73: Lakes at Creekside
Houston Division Case Study Lakes at Creekside Project Overview: Sourced by Tri Pointe Homes 116 Acres (357 lots) in Tomball, TX Initial contract date: • September 25, 2019 (265 Lots) - Added Cohen Tract: • December 30, 2020 (92 Lots) Lot widths: 45’/50’/60’ 73
Slide 74: Lakes at Creekside
Houston Division Case Study Lakes at Creekside Project Overview: Adjacent to The Woodlands area jobs center with first-class amenities Introduction of smaller lots and lower price points Strong school district and schools Performance to date: Average Sales Price - $520K Absorption - 7.7 per month (6
Slide 75: Selected Financial Data Houston Division
Houston Division Historical and Forward-Looking Selected Financial Data Houston Division 2021 -2024 Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As of and for the years ended December 31, 2021, 2022, 2023 and 2024) (As of and for the years ended December 31,
Slide 76: Gray Shell, Division President, Carolinas
Gray Shell Division President Carolinas
Slide 77: Charlotte Market Overview
Carolinas Charlotte Market Overview Annualized existing Annualized new Median Median home closings home closings price household income existing home $$$$$$$$$ $348,200 $$$$$$$$$ vs. new home $$$$$$$$$ $430,900 45,636 11,564 $71,200 Single-family permits MONTHS Est. months MONTHS Est. vacant (12 mon
Slide 78: 2Q21-1Q22 New Home Starts-Charlotte MSA
Carolinas 2Q21-1Q22 New Home Starts-Charlotte MSA Active TPH Neighborhoods Future TPH Neighborhoods Source: Zonda; eSpatial Shading indicates locations with 74+ new home starts between 2Q 2021 and 1Q 2022 78
Slide 79: Raleigh-Durham Market Overview
Carolinas Raleigh-Durham Market Overview Annualized existing Annualized new Median Median home closings home closings price household income existing home $$$$$$$$$ $374,000 $$$$$$$$$ vs. new home $$$$$$$$$ $445,300 38,106 14,640 $80,900 Single-family permits MONTHS Est. months MONTHS Est. vacant (1
Slide 80: 2Q21-1Q22 New Home Starts-Raleigh MSA
Carolinas 2Q21-1Q22 New Home Starts-Raleigh MSA Active TPH Neighborhoods Future TPH Neighborhoods Shading indicates locations with 74+ new home starts between 2Q 2021 and 1Q 2022 80
Slide 81: Lot Summary-Carolinas
Carolinas Lot Summary-Carolinas AS OF MARCH 31, 2022 Owned or controlled 4,711 lots in core submarkets Owned 1,379 Over 60% of lots were contracted in 2020 or prior argeting 42 new community openings from 2022 T through 2024 Controlled 3,332 ew communities largely focused on the Entry-Level N and Fi
Slide 82: Case Study: Organic Startup Playbook
Case Study Organic Startup Playbook
Slide 83: Then and Now
Carolinas Case Study Then and Now November 2018 – we set out to organically enter the Carolinas Three years ago: Today - Clear submarket & consumer - Talented team of over 100 employees segmentation strategy - Just over 4,700 homesites - 5 employees (35% owned, 65% controlled) (3 in Charlotte & 2 in
Slide 84: How Did We Get There?
Carolinas Case Study How Did We Get There? L everage Tri Pointe’s culture & strategy - Homebuilding is a local business - Focus on product design and execution - Deliver a premium homebuyer experience Intentional organic startup strategy People Land Product Design Building a Brand 84
Slide 85: Focus On People
Carolinas Case Study Focus On People Invest in talent early Create a place where people feel: - Engaged - Supported - Appreciated Focus on onboarding & development Provide autonomy & support Celebrate creativity Measure & drive results 85
Slide 86: Submarket & Consumer Strategy–Carolinas
Carolinas Case Study Submarket & Consumer Strategy–Carolinas Core Submarkets - Desirable locations - Good schools - Access to employment & entertainment Focus on Entry-Level Premium and First Move-Up Nimble and quick to respond to market opportunities Diversified product for a greater range of attai
Slide 87: Premium Brand and Product Design
Carolinas Case Study Premium Brand and Product Design Leverage local design capabilities Focus on livability wants & needs Product design flexibility allows for a broad range of attainable options Digital assets – interactive plans & virtual home tours Quality & site cleanliness Premium homebuyer ex
Slide 88: Selected Financial Data Carolinas
Carolinas Historical and Forward-Looking Selected Financial Data Carolinas 2021 -2024 Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As of and for the years ended December 31, 2021, 2022, 2023 and 2024) (As of and for the years ended December 31, 2021, 2022, 20
Slide 89: James Attwood, Division President, Arizona
James Attwood Division President Arizona
Slide 90: Phoenix Market Overview
Arizona Division Phoenix Market Overview Annualized existing Annualized new Median Median home closings home closings price household income existing home $$$$$$$$$ $458,900 $$$$$$$$$ vs. new home $$$$$$$$$ $454,000 130,964 23,717 $69,000 Single-family permits MONTHS Est. months MONTHS Est. vacant (
Slide 91: 2Q21-1Q22 New Home Starts-Arizona MSA
Arizona Division 2Q21-1Q22 New Home Starts-Arizona MSA Active TPH Neighborhoods Future TPH Neighborhoods Source: Zonda; eSpatial Shading indicates locations with 99+ new home starts between 2Q 2021 and 1Q 2022 91
Slide 92: Lot Summary-Arizona Division
Arizona Division Lot Summary-Arizona Division AS OF MARCH 31, 2022 Owned or controlled 4,278 lots in core submarkets Owned 1,536 Over 70% of lots were contracted in 2020 or prior argeting 25 new community openings from 2022 T through 2024 Controlled 2,742 ew communities largely focused on the First
Slide 93: Case Study: A History of Placemaking
Case Study A History of Placemaking
Slide 94: Tri Pointe Homes Arizona Placemaking
Arizona Division Case Study Tri Pointe Homes Arizona Placemaking nsure harmony among our land positions, E brand, and product uch of our activity comes from multi-program M communities which leads to better absorptions reative placemaking that the consumer values C which enhances revenue opportuniti
Slide 95: Waterston
Arizona Division Waterston Case Study Size: - 437 acres Land Price: - $122.9M ($281k/acre) Current Market Value: - $196.7M ($450k/acre)* *Based on management estimate 95
Slide 96: Waterston Deal Summary
Arizona Division Case Study Waterston Deal Summary Waterston South UNDERWRITING VS. ACTUALS Absorption ASP Gross Margin Neighborhood Units U/W* Actual** U/W* Actual + Backlog** U/W* Actual + Backlog*** Avocet 120 3.6 4.8 $603,454 $712,779 19.8% 23.1% Brighton 82 3.2 3.7 $697,220 $868,990 18.9% 24.6%
Slide 97: Selected Financial Data Arizona Division
Arizona Division Historical and Forward-Looking Selected Financial Data Arizona Division 2021 -2024 Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As of and for the years ended December 31, 2021, 2022, 2023 and 2024) (As of and for the years ended December 31,
Slide 98: Drivers for Long-Term Stockholder Value
Drivers for Long-Term Stockholder Value
Slide 99: Drivers for Long-Term Stockholder Value
Drivers for Long-Term Stockholder Value Drivers for Long-Term Stockholder Value Returns - Return on equity was 20.7% for the 12-month period ended March 31, 2022* - Targeting returns on equity of 20% - Capital efficient land purchases targeting 60% optioned land - Continued programmatic stock repurc
Slide 100: Drivers for Long-Term Stockholder Value (cont'd)
Drivers for Long-Term Stockholder Value Drivers for Long-Term Stockholder Value (cont’d) Profitability - Homebuilding gross margin of 25.4% and pretax income of 16.3% for the 12-month period ended March 31, 2022 - Increased scale will allow us to continue to leverage fixed costs - Continued optimiza
Slide 101: Q&A
Q&A
Slide 102: Reconciliation of Non-GAAP Financial Measures (unaudited)
Reconciliation of Non-GAAP Financial Reconciliation of Non-GAAP Financial Measures (unaudited) Measures (unaudited) In this presentation, we utilize certain financial measures that are non- March 31, 2022 GAAP financial measures as defined by the Securities and Exchange Loans payable $ 250,000 Commi