Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q3 2024 Earnings Presentation
18 slides from Green Brick Partners's earnings presentation, Oct 31, 2024
Slide 1: Investor Presentation 2024 Third Quarter
Normandy Homes | Painted Tree | McKinney TX IN V E S TO R P R E S E N TA TIO N 2024 Third Quarter
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning m
Slide 3: Management Presenters
Management Presenters Jim Brickman Jed Dolson Rick Costello C H I E F E X E C UT I V E O F F I C E R PRESIDENT AND CHIEF CHIEF FINANCIAL OFFICER A N D C O - F O UN D E R OPERATING OFFICER 3
Slide 4: Industry-Leading Gross Margins
Industry-Leading Gross Margins Green Brick maintained the best homebuilding gross margins amongst our peers Gross Margin Percentage (Most Recently Reported Quarter) 32.7% 27.8% 26.8% 26.8% 26.4% 26.4% 28.8% 23.5% 23.1% 27.4% 22.5% 25.0% 24.8% 24.8% 23.8% 23.6% 23.4% 23.3% 22.5% 21.8% 20.6% 19.1% GRB
Slide 5: We Like Land & Lots
We Like Land & Lots Returns & Leverage 2022 - 2024 Different from the promoted “land light” model, we believe that owning land on our 31.4% balance sheet and self-developing align more closely with Green Brick’s objectives of long-term growth and shareholder value creation. We believe our land model
Slide 6: Single-Family Inventory Remains Low
Single-Family Inventory Remains Low Existing single-family home inventory remains near historical lows across the country. 6
Slide 7: Persistent Lock-In Effect
Persistent Lock-In Effect Approximately 57% of mortgages have an interest rate below 4%, and approximately 75% have an interest rate below 5% Percent of Mortgages Outstanding By Interest Rate 35% 22% 18% 16% 10% <3% 3-4% 4-5% 5-6% 6%+ Source: Federal Housing Finance Agency. Data as of 2Q24. 7
Slide 8: Millennials Entering Prime Home Buying Age
Millennials Entering Prime Home Buying Age With the 35-44 year-old demographic considered the most active homebuyer, growth of this buyer segment supports strong demand in the future Population Of 35-44 Year-Olds In The U.S. Based On Ten-Year Trailing Birth Rates Population segment growth is expecte
Slide 9: Highlights – Q3 2024
Highlights – Q3 2024 • Home closings increased 26.8% year-over-year to 956 units, the second highest in company history. 3Q24 3Q23 Change • Average sales price of homes delivered was down 0.8% year-over-year to $547K, due to changes in community mix from infill to infill-adjacent locations. This was
Slide 10: Highlights – YTD 2024
Highlights – YTD 2024 YTD 2024 YTD 2023 Change New homes delivered 2,764 2,298 20.3% • Home closings increased 20.3% year-over-year to 2,764 units. Average sales price of homes delivered $547 $574 -4.7% • Average sales price of homes delivered was down 4.7% year-over-year to $547K, due to changes in
Slide 11: Strategic Advantages
Strategic Advantages We Substantially Grew Our Lots Owned and Controlled While Deleveraging Our Balance Sheet We believe we are well positioned to capture future demand and increase40,000 35.0% market share. 35,000 31,425 30.0% 31.3% 30.0% 27.7% • Footprint in two of the best markets of DFW and Atla
Slide 12: Business Priorities
Business Priorities Cancellation Rate (Most Recently Reported Quarter) 21% • Manage sales pace and pricing o Cancellation rate of 8.5% was one of the lowest among 17% homebuilding peers. 15% 15% o Incentives averaged 5.9% for new sales orders in 3Q24. 15% 13% o YTD Absorption rate was 9.3 orders per
Slide 13: Expected Lot Deliveries In 2024 – Dallas-Fort Worth
Expected Lot Deliveries In 2024 – Dallas-Fort Worth Majority of our DFW lots are being delivered in infill and adjacent “desirable areas” Lots Delivered / To Be Delivered in 2024 13
Slide 14: Expected Lot Deliveries In 2024 – Atlanta
Expected Lot Deliveries In 2024 – Atlanta Majority of our Atlanta lots are being delivered in infill and adjacent “desirable areas” Lots Delivered / To Be Delivered in 2024 14
Slide 15: Appendix
IN V E S TO R P R E S E N TA TIO N Appendix
Slide 16: Appendix: Net Debt To Total Capitalization – 9/30/24
Appendix: Net Debt To Total Capitalization – 9/30/24 Less: Cash and Gross cash Net equivalents Total debt, net of debt issuance costs $297,276 $80,069 $217,207 Total Green Brick Partners, Inc. stockholders’ equity $1,520,737 $0 $1,520,737 Total capitalization $1,818,013 $80,069 $1,737,944 Debt to to
Slide 17: Appendix: Net Income Return on Avg. GAAP Common Equity
Appendix: Net Income Return on Avg. GAAP Common Equity YTD 2024 Dollars in Thousands 2021 2022 2023 Annualized Net Income Applicable To Common Shareholders $190,139 $289,025 $281,751 $367,485 GRBK Common Equity Beginning $640,242 $826,852 $1,014,211 $1,253,101 GRBK Common Equity Ending $826,852 $1,0
Slide 18: Appendix: Net Income Return on Avg. Total Assets
Appendix: Net Income Return on Avg. Total Assets YTD 2024 Dollars in Thousands 2021 2022 2023 Annualized Net Income Applicable To Common Shareholders $190,139 $289,025 $281,751 $367,485 Total Assets Beginning $988,847 $1,421,867 $1,655,675 $1,902,832 Total Assets Ending $1,421,867 $1,655,675 $1,902,