Green Brick Partners, Inc. Reports Record Third Quarter 2024 Results

HOME CLOSINGS REVENUE OF $523M, A RECORD FOR ANY THIRD QUARTER, UP 25.7% YOY

DILUTED EPS OF $1.98, A RECORD FOR ANY THIRD QUARTER, UP 26.9% YOY

NET NEW HOME ORDERS OF 877, A RECORD FOR ANY THIRD QUARTER, UP 11.3% YOY

DEBT TO TOTAL CAPITAL OF 16.4%; NET DEBT TO TOTAL CAPITAL OF 12.5%

Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or the “Company”), today reported record results for its third quarter ended September 30, 2024.

“We are pleased to report that we completed our best third quarter in history, highlighted by 25.7% home closings revenues growth year-over-year. During the third quarter, we delivered 956 homes with an average selling price of $546,900, bringing total home closings revenues to $522.9 million. We continued to generate an industry-leading homebuilding gross margin of 32.7%. As a result, diluted EPS increased 27% year-over-year to $1.98 per share, a record for any third quarter. Our year-to-date diluted EPS of $6.12 is up 34.5% year-over year, another record for the company for any year-to-date period through the third quarter,” said Jim Brickman, CEO and Co-Founder.

“Net new orders in the third quarter picked up from the previous quarter and grew 11.3% year-over-year to 877 units,” continued Mr. Brickman. “We were pleased to see a rebound of traffic in September, particularly with Trophy Signature Homes ('Trophy'). Trophy’s net sales represented 52% of the total sales in third quarter vs 41% in the third quarter last year. This growth is a reflection of larger communities in which Trophy was selling in the third quarter and its growth in year-to-date starts, which have increased from 44% of Green Brick’s total starts through September 2023 to 50% of overall starts in 2024. We believe the demographic shifts and housing supply shortage will continue to bolster the industry, especially in our markets, over the long term and are confident Green Brick is well poised to capitalize on pent-up housing demand and industry tailwinds.”

Mr. Brickman added, “We expect to achieve record revenue for fiscal year 2024. This is a testament to our team and their operational effectiveness both currently and for the years prior as we have built out Green Brick’s foundation, including, at its core, our dedicated, experienced, and skilled employees. This is particularly rewarding as we celebrate the 10th anniversary of Green Brick as a public homebuilding company on October 27th. Reflecting the strength of our team, our active selling communities and homes under construction as of the end of the third quarter are up year-over-year 23% and 21%, respectively. We believe our superior land and lot positions will continue to serve as the springboard for our growth. Over 80% of our revenue year-to-date was generated in infill and infill adjacent submarkets where supply is more limited. Our year-to-date homebuilding gross margin of 33.6% is up 290 bps and reflects a record for any year in our history through the third quarter. With the ability to self-develop our lots, we expect finished lot costs as a percentage of home closings revenue to remain essentially flat for 2024 and 2025.”

“Green Brick’s distinctive business model and strategy have yielded impressive results over the past decade. This has translated into exceptional returns for our stockholders, even while carrying land and lots on our balance sheet. Our year-to-date return on equity is 27.0%. This success is underpinned by our conservative balance sheet and financial discipline,” concluded Mr. Brickman. “At the end of the third quarter, our net debt to total capital ratio was 12.5% and our total debt to total capital ratio was only 16.4% with a weighted average pay rate of 3.4%. As we look ahead to the next decade, we remain committed to investing in our business and people to strengthen our platform and propel our growth.”

Results for the Quarter Ended September 30, 2024:

(Dollars in thousands, except per share data)

Three Months Ended September 30,

 

 

 

 

2024

 

 

 

2023

 

 

Change

New homes delivered

 

956

 

 

 

754

 

 

 

26.8

%

 

 

 

 

 

 

Total revenues

$

523,660

 

 

$

418,978

 

 

 

25.0

%

Total cost of revenues

 

352,097

 

 

 

279,965

 

 

 

25.8

%

Total gross profit

$

171,563

 

 

$

139,013

 

 

 

23.4

%

Income before income taxes

$

118,976

 

 

$

98,086

 

 

 

21.3

%

Net income attributable to Green Brick Partners, Inc.

$

89,111

 

 

$

72,156

 

 

 

23.5

%

Diluted net income attributable to Green Brick Partners, Inc. per common share

$

1.98

 

 

$

1.56

 

 

 

26.9

%

 

 

 

 

 

 

Residential units revenue

$

522,859

 

 

$

415,923

 

 

 

25.7

%

Average sales price of homes delivered

$

546.9

 

 

$

551.5

 

 

 

(0.8

)%

Homebuilding gross margin percentage

 

32.7

%

 

 

33.3

%

 

-60 bps

Selling, general and administrative expenses as a percentage of residential units revenue

 

11.0

%

 

 

11.3

%

 

-30 bps

 

 

 

 

 

 

Backlog revenue

$

581,848

 

 

$

622,560

 

 

$

(40,712

)

Homes under construction

 

2,330

 

 

 

1,934

 

 

 

20.5

%

Results for the Nine Months Ended September 30, 2024:

(Dollars in thousands, except per share data)

Nine Months Ended September 30,

 

 

 

 

2024

 

 

 

2023

 

 

Change

New homes delivered

 

2,764

 

 

 

2,298

 

 

20.3

%

 

 

 

 

 

 

Total revenues

$

1,531,629

 

 

$

1,327,328

 

 

15.4

%

Total cost of revenues

 

1,022,143

 

 

 

920,774

 

 

11.0

%

Total gross profit

$

509,486

 

 

$

406,554

 

 

25.3

%

Income before income taxes

$

373,786

 

 

$

289,470

 

 

29.1

%

Net income attributable to Green Brick Partners, Inc.

$

277,770

 

 

$

211,606

 

 

31.3

%

Diluted net income attributable to Green Brick Partners, Inc. per common share

$

6.12

 

 

$

4.55

 

 

34.5

%

 

 

 

 

 

 

Residential units revenue

$

1,513,281

 

 

$

1,320,730

 

 

14.6

%

Average sales price of homes delivered

$

547.4

 

 

$

574.1

 

 

(4.7

)%

Homebuilding gross margin percentage

 

33.6

%

 

 

30.7

%

 

290 bps

Selling, general and administrative expenses as a percentage of residential units revenue

 

11.0

%

 

 

10.8

%

 

20 bps

Earnings Conference Call:

We will host our earnings conference call to discuss our third quarter ended September 30, 2024 at 12:00 p.m. Eastern Time on Thursday, October 31, 2024. The call can be accessed by dialing 1-888-660-6353 for domestic participants or 1-929-203-2106 for international participants and should reference meeting number 3162560. Participants may also join the call via webcast at: https://events.q4inc.com/attendee/478287045

A telephone replay of the call will be available through November 30, 2024. To access the telephone replay, the domestic dial-in number is 1-800-770-2030, the international dial-in number is 1-609-800-9909 and the access code is 3162560, or by using the link at investors.greenbrickpartners.com.

GREEN BRICK PARTNERS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Residential units revenue

 

$

522,859

 

 

$

415,923

 

 

$

1,513,281

 

 

$

1,320,730

 

Land and lots revenue

 

 

801

 

 

 

3,055

 

 

 

18,348

 

 

 

6,598

 

Total revenues

 

 

523,660

 

 

 

418,978

 

 

 

1,531,629

 

 

 

1,327,328

 

Cost of residential units

 

 

351,666

 

 

 

277,446

 

 

 

1,005,162

 

 

 

915,600

 

Cost of land and lots

 

 

431

 

 

 

2,519

 

 

 

16,981

 

 

 

5,174

 

Total cost of revenues

 

 

352,097

 

 

 

279,965

 

 

 

1,022,143

 

 

 

920,774

 

Total gross profit

 

 

171,563

 

 

 

139,013

 

 

 

509,486

 

 

 

406,554

 

Selling, general and administrative expenses

 

 

(57,740

)

 

 

(46,884

)

 

 

(165,912

)

 

 

(142,058

)

Equity in income of unconsolidated entities

 

 

992

 

 

 

1,345

 

 

 

4,770

 

 

 

11,265

 

Other income, net

 

 

4,161

 

 

 

4,612

 

 

 

25,442

 

 

 

13,709

 

Income before income taxes

 

 

118,976

 

 

 

98,086

 

 

 

373,786

 

 

 

289,470

 

Income tax expense

 

 

23,078

 

 

 

20,975

 

 

 

71,816

 

 

 

63,154

 

Net income

 

 

95,898

 

 

 

77,111

 

 

 

301,970

 

 

 

226,316

 

Net income attributable to noncontrolling interests

 

 

6,787

 

 

 

4,955

 

 

 

24,200

 

 

 

14,710

 

Net income attributable to Green Brick Partners, Inc.

 

$

89,111

 

 

$

72,156

 

 

$

277,770

 

 

$

211,606

 

 

 

 

 

 

 

 

 

 

Net income attributable to Green Brick Partners, Inc. per common share:

 

 

 

 

 

 

 

 

Basic

 

$

1.99

 

 

$

1.58

 

 

$

6.18

 

 

$

4.60

 

Diluted

 

$

1.98

 

 

$

1.56

 

 

$

6.12

 

 

$

4.55

 

Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:

 

 

 

 

 

 

 

 

Basic

 

 

44,457

 

 

 

45,320

 

 

 

44,614

 

 

 

45,543

 

Diluted

 

 

44,530

 

 

 

45,792

 

 

 

45,019

 

 

 

45,988

 

GREEN BRICK PARTNERS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

September 30, 2024

 

December 31, 2023

ASSETS

Cash and cash equivalents

$

80,069

 

 

$

179,756

 

Restricted cash

 

24,579

 

 

 

19,703

 

Receivables

 

11,329

 

 

 

10,632

 

Inventory

 

1,918,046

 

 

 

1,533,223

 

Investments in unconsolidated entities

 

59,356

 

 

 

84,654

 

Right-of-use assets - operating leases

 

7,535

 

 

 

7,255

 

Property and equipment, net

 

6,901

 

 

 

7,054

 

Earnest money deposits

 

13,869

 

 

 

16,619

 

Deferred income tax assets, net

 

15,307

 

 

 

15,306

 

Intangible assets, net

 

303

 

 

 

367

 

Goodwill

 

680

 

 

 

680

 

Other assets

 

34,096

 

 

 

27,583

 

Total assets

$

2,172,070

 

 

$

1,902,832

 

LIABILITIES AND EQUITY

Liabilities:

 

 

 

Accounts payable

$

67,346

 

 

$

54,321

 

Accrued expenses

 

165,900

 

 

 

96,457

 

Customer and builder deposits

 

45,065

 

 

 

43,148

 

Lease liabilities - operating leases

 

8,600

 

 

 

7,898

 

Borrowings on lines of credit, net

 

(1,718

)

 

 

(2,328

)

Senior unsecured notes, net

 

298,994

 

 

 

336,207

 

Notes payable

 

—

 

 

 

12,981

 

Total liabilities

 

584,187

 

 

 

548,684

 

Commitments and contingencies

 

 

 

Redeemable noncontrolling interest in equity of consolidated subsidiary

 

42,841

 

 

 

36,135

 

Equity:

 

 

 

Green Brick Partners, Inc. stockholders’ equity

 

 

 

Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

 

47,603

 

 

 

47,603

 

Common stock, $0.01 par value: 100,000,000 shares authorized; 44,498,248 issued and outstanding as of September 30, 2024 and 45,005,175 issued and outstanding as of December 31, 2023, respectively

 

445

 

 

 

450

 

Additional paid-in capital

 

243,199

 

 

 

255,614

 

Retained earnings

 

1,229,490

 

 

 

997,037

 

Total Green Brick Partners, Inc. stockholders’ equity

 

1,520,737

 

 

 

1,300,704

 

Noncontrolling interests

 

24,305

 

 

 

17,309

 

Total equity

 

1,545,042

 

 

 

1,318,013

 

Total liabilities and equity

$

2,172,070

 

 

$

1,902,832

 

GREEN BRICK PARTNERS, INC.

SUPPLEMENTAL INFORMATION

(Unaudited)

Residential Units Revenue and New Homes Delivered (dollars in thousands)

 

Three Months Ended September 30,

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

2024

 

 

 

2023

 

 

Change

 

%

 

 

2024

 

 

 

2023

 

 

Change

 

%

Home closings revenue

 

$

522,859

 

 

$

415,827

 

 

$

107,032

 

 

25.7

%

 

$

1,512,901

 

 

$

1,319,393

 

 

$

193,508

 

 

14.7

%

Mechanic’s lien contracts revenue

 

 

—

 

 

 

96

 

 

 

(96

)

 

(100.0

)%

 

 

380

 

 

 

1,337

 

 

 

(957

)

 

(71.6

)%

Residential units revenue

 

$

522,859

 

 

$

415,923

 

 

$

106,936

 

 

25.7

%

 

$

1,513,281

 

 

$

1,320,730

 

 

$

192,551

 

 

14.6

%

New homes delivered

 

 

956

 

 

 

754

 

 

 

202

 

 

26.8

%

 

 

2,764

 

 

 

2,298

 

 

 

466

 

 

20.3

%

Average sales price of homes delivered

 

$

546.9

 

$

551.5

 

$

(4.6

)

 

(0.8

)%

 

$

547.4

 

$

574.1

 

$

(26.7

)

 

(4.7

)%

Land and Lots Revenue (dollars in thousands)

 

Three Months Ended September 30,

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

2024

 

 

 

2023

 

 

Change

 

%

 

 

2024

 

 

 

2023

 

 

Change

 

%

Lots revenue

 

$

800

 

 

$

2,026

 

 

$

(1,226

)

 

(60.5

)%

 

$

5,644

 

 

$

5,569

 

 

$

75

 

 

1.3

%

Land revenue

 

 

1

 

 

 

1,029

 

 

 

(1,028

)

 

(99.9

)%

 

 

12,704

 

 

 

1,029

 

 

 

11,675

 

 

1,134.6

%

Land and lots revenue

 

$

801

 

 

$

3,055

 

 

$

(2,254

)

 

(73.8

)%

 

$

18,348

 

 

$

6,598

 

 

$

11,750

 

 

178.1

%

Lots closed

 

 

8

 

 

 

19

 

 

 

(11

)

 

(57.9

)%

 

 

79

 

 

 

55

 

 

 

24

 

 

43.6

%

Average sales price of lots closed

 

$

100.0

 

$

106.6

 

$

(6.6

)

 

(6.2

)%

 

$

71.4

 

$

101.3

 

$

(29.9

)

 

(29.5

)%

New Home Orders and Backlog (dollars in thousands)

 

Three Months Ended September 30,

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

2024

 

 

 

2023

 

 

Change

 

%

 

 

2024

 

 

 

2023

 

 

Change

 

%

Net new home orders

 

 

877

 

 

 

788

 

 

 

89

 

 

11.3

%

 

 

2,803

 

 

 

2,677

 

 

 

126

 

 

4.7

%

Revenue from net new home orders

 

$

454,358

 

 

$

452,436

 

 

$

1,922

 

 

0.4

%

 

$

1,539,549

 

 

$

1,572,859

 

 

$

(33,310

)

 

(2.1

)%

Average selling price of net new home orders

 

$

518.1

 

 

$

574.2

 

 

$

(56.1

)

 

(9.8

)%

 

$

549.3

 

 

$

587.5

 

 

$

(38.2

)

 

(6.5

)%

Cancellation rate

 

 

8.5

%

 

 

6.1

%

 

 

2.4

%

 

39.3

%

 

 

7.1

%

 

 

6.5

%

 

 

0.6

%

 

9.2

%

Absorption rate per average active selling community per quarter

 

 

8.4

 

 

 

9.2

 

 

 

(0.8

)

 

(8.7

)%

 

 

9.3

 

 

 

10.8

 

 

 

(1.5

)

 

(13.9

)%

Average active selling communities

 

 

105

 

 

 

86

 

 

 

19

 

 

22.1

%

 

 

100

 

 

 

83

 

 

 

17

 

 

20.5

%

Active selling communities at end of period

 

 

106

 

 

 

86

 

 

 

20

 

 

23.3

%

 

 

 

 

 

 

 

 

Backlog revenue

 

$

581,848

 

 

$

622,560

 

 

$

(40,712

)

 

(6.5

)%

 

 

 

 

 

 

 

 

Backlog units

 

 

809

 

 

 

916

 

 

 

(107

)

 

(11.7

)%

 

 

 

 

 

 

 

 

Average sales price of backlog

 

$

719.2

 

 

$

679.7

 

 

$

39.5

 

 

5.8

%

 

 

 

 

 

 

 

 

 

GREEN BRICK PARTNERS, INC.

SUPPLEMENTAL INFORMATION

(Unaudited)

 

September 30, 2024

 

December 31, 2023

 

Central

 

Southeast

 

Total

 

Central

 

Southeast

 

Total

Lots owned

 

 

 

 

 

 

 

 

 

 

 

Finished lots

4,070

 

 

726

 

 

4,796

 

 

4,014

 

 

964

 

 

4,978

 

Lots in communities under development

20,942

 

 

1,887

 

 

22,829

 

 

9,122

 

 

1,335

 

 

10,457

 

Land held for future development(1)

3,800

 

 

—

 

 

3,800

 

 

8,366

 

 

—

 

 

8,366

 

Total lots owned

28,812

 

 

2,613

 

 

31,425

 

 

21,502

 

 

2,299

 

 

23,801

 

 

 

 

 

 

 

 

 

 

 

 

 

Lots controlled

 

 

 

 

 

 

 

 

 

 

 

Lots under option contracts

851

 

 

—

 

 

851

 

 

1,169

 

 

—

 

 

1,169

 

Land under option for future development

1,656

 

 

223

 

 

1,879

 

 

1,710

 

 

460

 

 

2,170

 

Lots under option through unconsolidated development joint ventures

2,627

 

 

270

 

 

2,897

 

 

1,210

 

 

331

 

 

1,541

 

Total lots controlled

5,134

 

 

493

 

 

5,627

 

 

4,089

 

 

791

 

 

4,880

 

Total lots owned and controlled (2)

33,946

 

 

3,106

 

 

37,052

 

 

25,591

 

 

3,090

 

 

28,681

 

Percentage of lots owned

84.9

%

 

84.1

%

 

84.8

%

 

84.0

%

 

74.4

%

 

83.0

%

___________________

(1)

Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors.

(2)

Total lots excludes lots with homes under construction.

The following table presents additional information on the lots we owned as of September 30, 2024 and December 31, 2023.

 

September 30, 2024

 

December 31, 2023

Total lots owned(1)

31,425

 

 

23,801

 

Add certain lots included in Total Lots Controlled

 

 

 

Land under option for future acquisition and development

1,879

 

 

2,170

 

Lots under option through unconsolidated development joint ventures

2,897

 

 

1,541

 

Total lots self-developed

36,201

 

 

27,512

 

Self-developed lots as a percentage of total lots owned and controlled(1)

97.7

%

 

95.9

%

___________________

(1)

Total lots owned includes finished lot purchases, which were less than 1.8% of total lots self-developed as of September 30, 2024.

Non-GAAP Financial Measures

In this press release, 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 in evaluating our operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three and nine months ended September 30, 2024 and 2023 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

(Unaudited, in thousands):

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Residential units revenue

 

$

522,859

 

 

$

415,923

 

 

$

1,513,281

 

 

$

1,320,730

 

Less: Mechanic’s lien contracts revenue

 

 

—

 

 

 

(96

)

 

 

(380

)

 

 

(1,337

)

Home closings revenue

 

$

522,859

 

 

$

415,827

 

 

$

1,512,901

 

 

$

1,319,393

 

Homebuilding gross margin

 

$

171,193

 

 

$

138,427

 

 

$

508,003

 

 

$

404,644

 

Homebuilding gross margin percentage

 

 

32.7

%

 

 

33.3

%

 

 

33.6

%

 

 

30.7

%

 

 

 

 

 

 

 

 

 

Homebuilding gross margin

 

 

171,193

 

 

 

138,427

 

 

 

508,003

 

 

 

404,644

 

Add back: Capitalized interest charged to cost of revenues

 

 

2,788

 

 

 

2,968

 

 

 

8,539

 

 

 

10,456

 

Add back: Land impairment charge

 

$

1,308

 

 

$

—

 

 

$

1,308

 

 

$

—

 

Adjusted homebuilding gross margin

 

$

175,289

 

 

$

141,395

 

 

$

517,850

 

 

$

415,100

 

Adjusted homebuilding gross margin percentage

 

 

33.5

%

 

 

34.0

%

 

 

34.2

%

 

 

31.5

%

Net debt to total capitalization is calculated as the total debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total debt less cash and cash equivalents. The closest GAAP financial measure to the net debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net debt to total capitalization ratio as of September 30, 2024:

 

Gross

 

Cash and cash equivalents

 

Net

Total debt, net of debt issuance costs

$

297,276

 

 

$

(80,069

)

 

$

217,207

 

Total Green Brick Partners, Inc. stockholders’ equity

 

1,520,737

 

 

 

—

 

 

 

1,520,737

 

Total capitalization

$

1,818,013

 

 

$

(80,069

)

 

$

1,737,944

 

 

 

 

 

 

 

Debt to total capitalization ratio

 

16.4

%

 

 

 

 

Net debt to total capitalization ratio

 

 

 

 

 

12.5

%

About Green Brick Partners, Inc.

Green Brick Partners, Inc (NYSE: GRBK), the third largest homebuilder in Dallas-Fort Worth, is a diversified homebuilding and land development company that operates through its seven subsidiary homebuilders in Texas, Georgia, and Florida. Green Brick owns five subsidiary homebuilders in Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Trophy Signature Homes, and a 90% interest in Centre Living Homes), as well as a controlling interest in a homebuilder in Atlanta, Georgia (The Providence Group) and an 80% interest in a homebuilder in Port St. Lucie, Florida (GHO Homes). Green Brick also retains interests in related financial services platforms, including Green Brick Title and BHome Mortgage. Green Brick is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities. For more information about Green Brick Partners Inc.’s subsidiary homebuilders, please visit greenbrickpartners.com/brands-services/

Forward-Looking and Cautionary Statements:

This press release and our earnings call contain “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 matters that are not historical facts and typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “feel,”, “poised,” “intend,” “plan,” “predict,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Specifically, these statements reflect our beliefs and expectations regarding (i) our strategic advantages, including our focus on owning land and self-developing and on infill and infill-adjacent locations, and the impact on our future results; (ii) our positioning to capture future demand, increase market share and succeed in the current environment, including our ability to maintain industry-leading performance and margins; (iii) our ability to successfully implement our growth strategy, including our expectations for expansion and growth of our Trophy brand, and ancillary business opportunities; (iv) our expectations regarding trends in our markets, such as demographic trends and demand for single-family homes; (v) our business priorities and our strategies to maintain the strength of our balance sheet and financial flexibility, and our positioning in the industry; (vi) the advantages of our lot and land strategies and locations, including the benefits to our returns, margins and ability to scale; (vii) our investments in land, lots and development in 2024, and the impact on our growth; (viii) our expected lot deliveries in 2024; (ix) our flexibility in adjusting home prices; (x) the demand for home ownership in the markets in which we operate and our ability to capitalize on such demand; (xi) the land-light model; (xii) our ability to scale our business and improve our operating leverage; and (xiii) our ability to deliver efficient and cost-effective growth, including our ability to manage costs and cycle times. These risks include, but are not limited to: (1) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (2) changes in macroeconomic conditions, including increasing interest rates and inflation that could adversely impact demand for new homes or the ability of potential buyers to qualify; (3) shortages, delays or increased costs of raw materials and increased demand for materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed our ability to increase prices; (4) significant periods of inflation or deflation; (5) a shortage of qualified labor; (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including the successful development of our communities within expected time frames and the growth and expansion of our Trophy brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) the geographic concentration of our operations; (10) government regulation risks; (11) adverse changes in the availability or volatility of mortgage financing; (12) severe weather events or natural disasters; (13) difficulty in obtaining sufficient capital to fund our growth; (14) our ability to meet our debt service obligations; (15) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (16) our ability to adequately self-insure; and (17) changes in accounting standards that adversely affect our reported earnings or financial condition.. Green Brick assumes no obligation to update any forward-looking statements, which speak only as of the date they are made. For a more detailed discussion of these and other risks and uncertainties applicable to Green Brick please see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030535676/en/

Benting Hu Vice President of Finance 469-573-6755 [e-mail]