Green Brick Partners Inc (GRBK) 2024 Q3 法說會逐字稿

Hello, everyone. My name is Jessica, and I will be your conference operator today. At this time. I would like to welcome everyone to the Green Brick Partners Inc third quarter, '24 earnings call. (Operator instructions) Thank you.

大家好。我叫潔西卡，今天我將擔任你們的會議操作員。此時。我謹歡迎大家參加 Green Brick Partners Inc 24 年第三季財報電話會議。（操作員說明）謝謝。

I would now like to turn the call over to Richard Costello, Chief Financial Officer. Please go ahead.

我現在想將電話轉給財務長理查德‧科斯特洛 (Richard Costello)。請繼續。

Good afternoon and welcome to Green Partners earnings call for the third quarter ended September 30, 2024. Following today's remarks, we will hold a Q&A session as a reminder this call is being recorded and will be available for playback. In addition, a presentation will accompany today's webcast and is also available on the company's website at investors.greenbrickpartners.com on the call today is Jim Brickman, co-founder and Chief Executive Officer, Jed Dolson, President and Chief Operating Officer and myself, Rick Costello, Chief Financial Officer.

下午好，歡迎參加 Green Partners 截至 2024 年 9 月 30 日的第三季財報電話會議。在今天的演講之後，我們將舉行問答會議，以提醒您此通話正在錄音並且可以回放。此外，今天的網路直播將伴隨著一場演講，也可以​​在公司網站Investors.greenbrickpartners.com 上觀看今天的電話會議，聯合創始人兼首席執行官吉姆·布里克曼(Jim Brickman)、總裁兼營運長傑德·多爾森(Jed Dolson) 和我本人，里克·科斯特洛，財務長。

Some of the information discussed on this call is forward-looking including the company's financial and operational expectations for '24 and beyond. In yesterday's press release and SEC filings, the company detailed material risks that may cause its future results to differ from its expectations. The company's statements are as of today, October 31, 2024, and the company has no obligation to update any forward-looking statement. It may make our comments also include non-GAAP financial metrics, the reconciliation of these metrics and the other information required by regulation G can be found in the earnings release that the company issued yesterday. And in the presentation available on the company's website, with that, I'll turn the call over to Jim.

本次電話會議討論的一些資訊具有前瞻性，包括公司對 24 世紀及以後的財務和營運預期。在昨天的新聞稿和向美國證券交易委員會提交的文件中，該公司詳細說明了可能導致其未來業績與預期不同的重大風險。該公司的聲明截至今天，即2024年10月31日，該公司沒有義務更新任何前瞻性聲明。這可能使我們的評論還包括非公認會計準則財務指標，這些指標的調節以及G法規要求的其他資訊可以在該公司昨天發布的收益報告中找到。在公司網站上提供的簡報中，我會將電話轉給吉姆。

Thank you, Rick.

謝謝你，瑞克。

Before we dive into the financial results today, I would like to take a moment to acknowledge a significant milestone for Green Brick.

在我們今天深入探討財務表現之前，我想花點時間承認 Green Brick 的一個重要里程碑。

This week marks the 10th anniversary since Green Brick became a public company. Over the past decade. we have prided ourselves on our ability to navigate turbulent environments while maintaining a focus on our long -term growth objectives.

本周是 Green Brick 上市十週年。過去十年。我們為自己能夠駕馭動盪的環境，同時保持對長期成長目標的關注而感到自豪。

10 years ago in '14, we had fewer than 600 closings and $246 million in total revenues. In 2021 we achieved total revenues above $1 billion for the first time. And now we expect to surpass the $2 billion mark in revenue in fiscal '24.

10 年前的 14 年，我們的成交量還不到 600 筆，總收入為 2.46 億美元。2021 年，我們的總收入首次超過 10 億美元。現在，我們預計 24 財年的營收將突破 20 億美元大關。

Our compounded annual growth rate and pretext income from fiscal year '15 to the last 12 months ending September 30, 2024 is an amazing 34%.

從 15 財年到截至 2024 年 9 月 30 日的過去 12 個月，我們的複合年增長率和藉口收入達到了驚人的 34%。

We also believe that our ability to grow with one of the least leveraged balance sheets and one of the lowest cost of debt among our small and mid-cap peers demonstrates our team's operational excellence and positions us well for future growth.

我們也相信，我們能夠在中小型股同業中以槓桿率最低的資產負債表之一和債務成本最低的企業之一實現成長，這證明了我們團隊的卓越營運能力，並使我們為未來的成長做好了準備。

At the end of the third quarter, our net debt to total capital ratio was only 12.5%. And our total debt to total capital ratio was 16.4% with a weighted average interest rate of 3.4%.

三季末，我們的淨負債與總資本的比率僅為12.5%。我們的總負債與總資本比率為16.4%，加權平均利率為3.4%。

Finally, of the 16 public home building peers that we track Green Brick was the top performer since we went public based on share price appreciation including the impact of any dividends.

最後，根據股價升值（包括任何股息的影響），自我們上市以來，在我們追蹤的 16 家上市住宅建築同行中，Green Brick 是表現最好的。

As I look back on this journey, I'm incredibly grateful and proud of our accomplishments made possible by our dedicated employees whose unwavering commitment enable Green Brick to realize its vision of building long term lasting communities and providing lasting value to our homebuyers and our shareholders.

當我回顧這段旅程時，我對我們敬業的員工所取得的成就感到無比感激和自豪，他們堅定不移的承諾使Green Brick 實現了建立長期持久社區並為我們的購房者和股東提供持久價值的願景。

Now let's turn to our third quarter results.

現在讓我們來看看第三季的業績。

I'm excited to share the agreement completed its best third quarter in company history.

我很高興與大家分享協議完成了公司歷史上最好的第三季。

We closed 956 new homes and grew home closings revenue by 26% year over year to $523 million. Over 80% of which was again generated from infill and infill adjacent submarkets home building gross margins moderated from our record high last quarter but remained at the top among our public home building peers. As shown on slide. Four year-to-date home building gross margin of 33.6% was up 290 basis points and reflects a record for any year in our history through the third quarter.

我們成交了 956 套新房，房屋成交收入年增 26%，達到 5.23 億美元。其中超過 80% 的毛利率再次來自填充式和填充式相鄰子市場住宅建築毛利率，較上季度創紀錄的高位有所放緩，但在公共住宅建築同行中仍處於領先地位。如投影片所示。四年來住宅建築毛利率為 33.6%，成長了 290 個基點，創下了截至第三季我們歷史上任何一年的紀錄。

As shown on slide 5, since 2022 we have generated home building gross margins in excess of 30%. With the exception of only three quarters net income attributable to Green Brick during the third quarter grew 23.5% to $89 million and earnings per share increased 26.9% year over year to a dollar $1.98. A record for any third quarter, year-to-date, diluted EPS of $6.12 was up 34.5% year over year. Another record for the company for any year-to-date period through the third quarter and only 0.2 below our full year EPS of $6.14 in 2023.

如投影片 5 所示，自 2022 年以來，我們的住宅建築毛利率已超過 30%。除僅三個季度外，第三季度歸屬於 Green Brick 的淨利潤增長了 23.5%，達到 8,900 萬美元，每股收益同比增長 26.9%，達到 1.98 美元。年初至今第三季攤薄後每股收益為 6.12 美元，年增 34.5%，創下歷史新高。該公司第三季迄今創下的又一紀錄，僅比 2023 年全年每股收益 6.14 美元低 0.2 美元。

I believe there are several reasons for Green Brick consistent performance, but I would like to highlight one factor that is the heart of Green Brick's success specifically while Green Brick has evolved since its founding, our core philosophy and approach to land acquisition and development remains intact.

我相信 Green Brick 的持續表現有幾個原因，但我想強調一個是 Green Brick 成功的核心因素，特別是雖然 Green Brick 自成立以來不斷發展，但我們的核心理念和土地收購和開發方法仍然完好無損。

We differentiate ourselves from the prevalent land light model by strategically acquiring high quality land and self developing lots on our balance sheet.

我們透過在資產負債表上策略性地收購優質土地和自行開發地塊，將自己與流行的土地照明模式區分開來。

This approach enables us to avoid the rising costs often associated with the land light model, particularly in today's demand environment for land and lot inventory. As a result, we anticipate our lot cost as a percentage of average sales price for a full year, '24 and '25 to be flat compared to '23.

這種方法使我們能夠避免通常與土地照明模型相關的成本上升，特別是在當今土地和地塊庫存的需求環境中。因此，我們預計 24 年和 25 年的批量成本佔全年平均銷售價格的百分比與 23 年持平。

In contrast to the industry trend, where land and lot costs are continually growing. As a percentage of the ASP, we believe the ability to self develop land at wholesale prices positions us favorably to control the entire land development life cycle including giving us the ability to moderate pacing and timing as market ship which in turn enables us to manage costs more effectively self development also widens our access to land deals in a competitive land market, especially in coveted infill and infill adjacent submarkets.

與土地和地塊成本持續增長的行業趨勢相反。作為平均售價的百分比，我們相信以批發價自行開發土地的能力使我們能夠有利地控制整個土地開發生命週期，包括使我們能夠像市場運輸一樣調節節奏和時機，從而使我們能夠管理成本更有效的自我發展也擴大了我們在競爭激烈的土地市場中獲得土地交易的機會，特別是在令人垂涎的填充和填充相鄰子市場。

Despite the misconception that land heavy leads to lower returns. Green Brick has consistently generated industry leading return on assets and equity.

儘管存在著「土地重會導致回報較低」的誤解。Green Brick 始終創造業界領先的資產和股本回報率。

Our year-to-date annualized return on equity was 27% and return on assets was 18% return on equity and return on assets. Since '22 average 27.8% and 17.5%.

我們年初至今的年化股本報酬率為 27%，資產報酬率為 18%。自 22 年以來平均為 27.8% 和 17.5%。

These returns are even more impressive as we're able to generate this level of from our significant land investments which are an investment in the long term but do not contribute to any revenue in the current period.

這些回報更加令人印象深刻，因為我們能夠從大量土地投資中獲得這種水準的回報，這些投資是長期投資，但不會為當前時期的任何收入做出貢獻。

We believe we have one of the best land and lot positions in our industry and are well positioned to maximize the value of our land assets and generate sustainable growth for the years to come.

我們相信，我們擁有行業中最好的土地和地塊位置之一，並且有能力最大限度地提高我們的土地資產價值並在未來幾年實現永續成長。

We believe our land approach and key markets are also beneficial in analyzing market fundamentals. We have not yet seen a significant increase in competition from existing homes in our key submarkets where we have acquired land primarily in infill and infill adjacent locations.

我們相信我們的土地方法和主要市場也有利於分析市場基本面。在我們的主要子市場中，我們尚未看到來自現有住宅的競爭顯著增加，我們在這些子市場中主要在填充和填充相鄰位置購買了土地。

As illustrated on slide, six, existing home inventory remains at near historic levels. Many existing homeowners continue to stay put rather than forego their low mortgage rates. As shown on slide 7, approximately 75% of outstanding mortgages have an interest rate below 5%.

如投影片六所示，現有房屋庫存仍接近歷史水準。許多現有房主繼續留在原處，而不是放棄低抵押貸款利率。如投影片 7 所示，約 75% 的未償還抵押貸款利率低於 5%。

We believe that under current economic conditions and the high interest rate environment, the primary challenges, limited demand continue to be buyers, psychology and affordability.

我們認為，在當前經濟狀況和高利率環境下，需求有限仍然是買家心理和負擔能力的主要挑戰。

Many prospective home buyers remain cautious. Even if they could qualify current mortgage rates, we continue to provide our buyers the flexibility to allocate their spend out of our incentive dollars toward rate reduction, buy downs and closing costs to mitigate affordability concerns over the long term. We continue to believe that favorable demographic shifts will serve as a strong backdrop for the homebuilding industry.

許多潛在購屋者仍保持謹慎態度。即使他們能夠滿足當前的抵押貸款利率，我們也會繼續為買家提供靈活性，將他們的支出從我們的激勵資金中分配給降息、買斷和成交成本，以減輕長期負擔能力的擔憂。我們仍然相信，有利的人口變化將為住宅建築業提供強大的背景。

As outlined on slide 8, a wave of millennials and Gen Z are entering into prime home buying years, fueling demand for the next decade.

正如幻燈片 8 所述，一波千禧世代和 Z 世代正在進入黃金購屋時期，刺激了未來十年的需求。

The housing market has been under built for years following the financial crisis, creating a significant shortage, estimated between 4million and 7 million units.

金融危機後，房地產市場多年來一直處於建設之中，造成嚴重短缺，估計數量在 400 萬至 700 萬套之間。

These factors collectively represent a substantial opportunity for new home construction and we believe Green Brick is well positioned to capitalize on this trend and to expand our market share with our superior land pipeline. With that. I'll I'll turn it over to Rick who will provide more detail regarding our financial results, Rick.

這些因素共同代表了新住宅建設的巨大機遇，我們相信 Green Brick 處於有利位置，可以利用這一趨勢，並透過我們優質的土地管道擴大我們的市場份額。就這樣。我會把它交給里克，他將提供有關我們財務業績的更多詳細信息，里克。

Thank you, Jim. Please turn to slide. Nine of the presentation home closings revenue grew 26% year over year to $523 million. The highest for any third quarter in company history.

謝謝你，吉姆。請轉到幻燈片。九個演示房屋成交收入年增 26%，達到 5.23 億美元。創公司史上第三季最高水準。

This increase was driven by 26.8% more closings year over year to 956 units partially offset by an 80 basis point year over year decline of ASP to $547,000.

這一增長是由於成交量年增 26.8% 至 956 套，部分被平均售價年減 80 個基點至 547,000 美元所抵消。

We continue to expect ASP to be in the range of 540,000 to 560,000 for the fourth quarter.

我們繼續預計第四季度的平均售價將在 540,000 至 560,000 之間。

Subject to changes in product mix and business conditions.

受產品結構和業務條件變化的影響。

Co building gross margins were 32.7% during the third quarter. Down 60 basis points year over year. Our gross margin percentage remains the highest among our public home building peers. As shown on slide 4, the sequential increase in incentives and discounts contributed to the decline in home building gross margins as we adjusted to seasonality and elevated mortgage rates during the quarter, Jed will provide more details on the sales environment shortly.

第三季聯合建築毛利率為 32.7%。年減60個基點。我們的毛利率仍然是公共住宅建築同行中最高的。如幻燈片4 所示，隨著我們根據本季的季節性和抵押貸款利率的上升進行調整，激勵和折扣的連續增加導致了房屋建築毛利率的下降，Jed 很快就會提供有關銷售環境的更多詳細資料。

The majority of trophies closings in third quarter were sold during the same quarter resulting in a more rapid flow through of higher incentives on our P&L which had a slight negative impact on our gross margins.

第三季成交的大部分獎盃均在同一季度售出，導致我們的損益表上的更高激勵措施更快地流動，這對我們的毛利率產生了輕微的負面影響。

SGA as a percentage of residential unit revenue for the third quarter decrease 30 basis points year over year to 11.0%.

第三季SGA佔住宅單位收入的百分比年減30個基點至11.0%。

Net income attributable to Green Brick increased nearly 24% to $89 million to and 0.98 per share. Both a record for any third quarter in company history as shown on slide. 10 year-to-date, we delivered 2,764 homes generating home closing revenues of $1.51 billion an increase of 14.6% year over year home building gross margin increased 290 basis points to 33.6% which reflects a record for any year in our history through the third quarter.

Green Brick 淨利成長近 24%，達到 8,900 萬美元，每股收益 0.98 美元。如幻燈片所示，兩者均創下公司歷史上任何第三季的記錄。 10 year-to-date, we delivered 2,764 homes generating home closing revenues of $1.51 billion an increase of 14.6% year over year home building gross margin increased 290 basis points to 33.6% which reflects a record for any year in our history through the third四分之一.

Net income attributable to Green Brick increase percent year over year $278 million and diluted EPS grew 34.5% to $6.12. Also a record for any year-to-date period through the third quarter.

Green Brick 淨利潤年增 2.78 億美元，攤薄後每股收益成長 34.5% 至 6.12 美元。這也是今年迄今截至第三季的記錄。

Net new home orders during the third quarter picked up sequentially and were up 11.3% year over year to 877 orders.

第三季新屋淨訂單季增 11.3% 至 877 份。

Our ESP for new home orders was down 9.8% year over year to $518,000. The decrease was due to one our shipping community mix from closing out infill communities to opening new communities and surrounding infill adjacent areas and to a higher percentage of new sales from Trophy, which typically has a lower ASP.

我們的新屋訂單 ESP 年比下降 9.8% 至 518,000 美元。下降的原因是我們的航運社區組合從關閉填充社區到開設新社區和周圍填充相鄰區域，以及來自 Trophy 的新銷售比例較高，而 Trophy 通常具有較低的平均售價。

In Q3 of '24 Trophy represented 52% of total new home orders versus 41% in Q3 of '23 year-to-date net orders totaled 2,803. An increase of 4.7% year over year with revenue from new homeowners of $1.54 billion backlog value at the end of the third quarter decreased 6.5% year over year to $582 million. Trophy. A spec home builder continued to represent a low percentage of overall backlog value at less than 15%. As a result, our backlog ASP increased 5.8% year over year to $719,000 which stands in contrast to the lower year over year closing ASP. We are actively growing our presence in our existing markets with an ending community count of 106 which represents a 23% increase. Trophy is selling from 38 of those communities sales base for the third quarter was 8.4 homes per average active selling community or 2.8 sales per community per month.

在 24 年第三季度，Trophy 佔新屋訂單總數的 52%，而在 23 年第三季度，該比例佔 41%，淨訂單總數為 2,803 份。年增 4.7%，第三季末新房業主積壓收入為 15.4 億美元，年減 6.5% 至 5.82 億美元。杯。規格住宅建築商在總體積壓訂單價值中所佔比例仍然較低，低於 15%。因此，我們的積壓平均售價年增 5.8% 至 719,000 美元，與去年同期較低的最終平均售價形成鮮明對比。我們正在積極擴大我們在現有市場的影響力，最終社區數量達到 106 個，成長了 23%。Trophy 的銷售來自其中 38 個社區，第三季的銷售基數為每個活躍銷售社區平均 8.4 套房屋，或每個社區每月 2.8 套房屋。

Our cancellation rate for the third quarter remained low at 8.5% which was again one of the lowest among public home building peers. As shown on slide 12.

我們第三季的取消率仍保持在 8.5% 的低位，這再次成為公共住宅建築同行中最低的之一。如投影片 12 所示。

As shown on the same slide, we started 1,057 homes or over 20% more home starts in the '24 from the previous year. Also, our units under construction increased 21% to 2,330 year-to-date. Our starts are up 28%.

如同一張投影片所示，我們在 20 世紀 24 年開工了 1,057 套房屋，比前一年增加了 20% 以上。此外，今年迄今，我們的興建公寓數量增加了 21%，達到 2,330 套。我們的開工率成長了 28%。

Spec units under construction as a percentage of total units under construction was 69% at the end of the third quarter, which is consistent with the start of 2024.

截至第三季末，在建規格機組佔在建機組總數的百分比為 69%，與 2024 年初一致。

During the third quarter, we bought back approximately 97,700 shares of stock for $5.4 million with a weighted average price of $55.19 per share.

第三季度，我們以 540 萬美元回購了約 97,700 股股票，加權平均價格為每股 55.19 美元。

While we remain opportunistic with respect to potential share repurchases, our primary focus will continue to be allocating capital to grow our inventory last but not least. Our investment grade balance sheet continues to provide us with a solid foundation for future expansion.

雖然我們仍然對潛在的股票回購持機會主義態度，但我們的主要重點將繼續是分配資本以增加我們的庫存，最後但並非最不重要的。我們的投資等級資產負債表繼續為我們未來的擴張奠定堅實的基礎。

At the end of the quarter, our total debt to total capital ratio was only 16.4% among the best of our public homebuilding peers. As shown on slide11. 100% of our outstanding debt is fixed rate at an interest rate of 3.4%. Furthermore, we had $80 million of cash on hand at the end of the third quarter, readily available for deployment and $360 million fully available under our lines of credit.

截至本季末，我們的總負債與總資本比率僅為 16.4%，在公共住宅建築同業中名列前茅。如投影片 11 所示。我們 100% 的未償債務為固定利率，利率為 3.4%。此外，截至第三季末，我們手頭上有 8,000 萬美元現金可供隨時部署，並且我們的信貸額度下有 3.6 億美元完全可用。

With that, I'll now turn it over to Jed.

有了這個，我現在將把它交給傑德。

Thank you, Rick. We are pleased to see a sequential increase in sales volume during the third quarter. In contrast to the declining trend observed last year at the same time, net new orders increased 11.3% year over year to 877. In the third quarter, demand accelerated from June to July as mortgage rates dropped from 7% to mid 6%. While traffic slowed down in August, we were encouraged by a rebound in September driven by a further interest rate decline to the low 6% range as well as a modest pricing adjustment in select communities incentives for new orders during the third quarter averaged 5.9% up from 4.5%. Last quarter.

謝謝你，瑞克。我們很高興看到第三季銷量持續成長。與去年同期的下降趨勢形成鮮明對比的是，淨新訂單年增 11.3% 至 877 份。第三季度，隨著抵押貸款利率從 7% 降至 6% 左右，需求從 6 月到 7 月加速。雖然 8 月份客流量有所放緩，但 9 月份的反彈令我們感到鼓舞，原因是利率進一步下降至 6% 的低位，並且特定社區的價格適度調整，第三季度新訂單激勵措施平均上漲 5.9% 4.5%起。上個季度。

Our Dallas and Atlanta submarkets continued to be healthy. Trophy in particular experienced a stronger rebound in traffic and sales in September. Trophy's share of Green Brick new home orders for the third quarter increased to 52% by volume as compared to 41% in the third quarter of last year. Trophies competitively priced products are designed to appeal to entry level and first time move up homebuyers who we believe constitute a larger and growing pool of potential customers. However, this category of prospective buyers is more sensitive to interest rate fluctuations requiring more pricing and incentive concessions in certain communities. Year-to-date trophy represented 46% of closings by volume and over 35% by revenue with our industry leading growth margins. We believe we have more flexibility in adjusting home prices as needed. Our team remains diligent in monitoring and evaluating each community adjusting and optimizing pricing and pace on a dynamic basis.

我們的達拉斯和亞特蘭大子市場繼續保持健康。Trophy 在 9 月的流量和銷售額尤其出現了更強勁的反彈。Trophy 第三季在 Green Brick 新房訂單中的份額從去年第三季的 41% 增至 52%。獎盃產品價格具有競爭力，旨在吸引入門級和首次升級購屋者，我們相信他們構成了更大且不斷增長的潛在客戶群。然而，這類潛在買家對利率波動更為敏感，需要在某些社區獲得更多定價和激勵優惠。年初至今，該獎盃佔成交量的 46%，佔收入的 35% 以上，我們的成長率處於行業領先地位。我們相信，我們在根據需要調整房價方面擁有更大的靈活性。我們的團隊仍然努力監控和評估每個社區，動態調整和優化定價和節奏。

To address affordability, we continue to offer buyers the flexibility to use their incentive package towards either the price or closing costs including rate buy downs buyers who close use. Our affiliated mortgage company continued to demonstrate strong qualifying profiles with an average FICO score of 734 and the average debt to income ratio of 37% during the third quarter.

為了解決負擔能力問題，我們繼續為買家提供靈活性，讓他們可以使用激勵方案來降低價格或成交成本，包括對關閉使用的買家進行降價購買。我們的附屬抵押貸款公司持續展現強勁的資格概況，第三季的平均 FICO 分數為 734，平均負債收入比為 37%。

We're pleased to report significant progress in our new wholly owned mortgage, green break mortgage. Our team has been working diligently to implement the tech stack draft policies and procedures and secure the warehouse lines of credit for originating loans. We're actively recruiting loan officers, processors and underwriters with an estimated launch time frame in the first quarter of next year. We're excited to offer our customers a more comprehensive and turnkey financial solution while adding a new income stream for Green Brick moving to capital allocation. As Jim mentioned in his opening remarks, Greenberg's exceptional growth and returns over the past decade starts with and is driven by our unique land strategy to propel our growth going forward. Our land team has been diligently sourcing and developing land that positions us for future success.

我們很高興地報告我們新的全資抵押貸款、綠色突破抵押貸款取得了重大進展。我們的團隊一直在努力實施技術堆疊草案政策和程序，並確保發放貸款的倉庫信用額度。我們正在積極招募信貸員、處理商和承銷商，預計啟動時間為明年第一季。我們很高興能為客戶提供更全面的統包金融解決方案，同時為 Green Brick 轉向資本配置增加新的收入來源。正如吉姆在開場白中提到的那樣，格林伯格在過去十年中的卓越成長和回報始於我們獨特的土地策略，並受其推動，以推動我們向前發展。我們的土地團隊一直在努力尋找和開發土地，為我們未來的成功做好準備。

During the third quarter of '24 we spent 125 million in land acquisition and 70 million in land development bringing our year-to-date total spending to 514 million. We remain on track to meet our original target of 700 million in land acquisition and development spend for the full year of 2024 year over year, we added over 12,700 new lots on a gross basis on a net basis. Total lots owned and controlled at the end of the third quarter increased by 41% to over 37,000 lots.

2024 年第三季度，我們在土地收購上花費了 1.25 億美元，在土地開發上花費了 7,000 萬美元，使我們今年迄今的總支出達到 5.14 億美元。我們仍有望實現 2024 年全年土地收購和開發支出 7 億美元的原定目標，年比淨增加超過 12,700 個新地塊。截至第三季末，擁有和控制的土地總數增加了 41%，達到超過 37,000 塊土地。

Geographically, approximately 92% of our total lots owned and controlled are located in Texas, 5% in Georgia and 3% in Florida. Approximately 67% of total lots are allocated to trophy our primary growth engine excluding 19,300 lots in long term communities. Our current pipeline provides approximately five years of lot supply for our builders based on starts pace and non master communities of the last 12 months. Additionally, over 90% of our current inventory of lots owned and controlled are expected to be self developed slides 13 and 14 outline additional detail on our finished lot pipeline and our submarkets in Dallas-Fort Worth and Atlanta. Our two largest markets by the end of the year, we expect to have approximately 4,600 finished lots for our subsidiary home builders position in Green Brook to sustain growth in '25.

從地理位置來看，我們擁有和控制的總土地中約 92% 位於德克薩斯州，5% 位於喬治亞州，3% 位於佛羅裡達州。大約 67% 的地塊被分配給我們的主要成長引擎，不包括長期社區中的 19,300 塊地塊。根據過去 12 個月的開工進度和非主社區，我們目前的管道為我們的建築商提供了大約五年的地塊供應。此外，我們目前擁有和控制的地塊庫存中超過90% 預計將是自行開發的。 。到今年年底，我們的兩個最大市場預計將有大約 4,600 塊成品地塊供我們位於 Green Brook 的子公司住宅建築商使用，以維持 25 年的成長。

Our land markets remain extremely competitive as we strategically seek out high quality land parcels to support our group.

我們的土地市場仍然極具競爭力，因為我們策略性地尋找高品質的地塊來支持我們的集團。

Despite persistent pressure on overall land prices, we remain confident in our ability to leverage our strong balance sheet and deep rooted local connections to identify and acquire land that fits our stringent underwriting requirements.

儘管整體土地價格持續面臨壓力，但我們仍然相信我們有能力利用我們強大的資產負債表和根深蒂固的當地關係來識別和收購符合我們嚴格的承保要求的土地。

During the third quarter, we continued to underwrite new deals that met or exceeded our unleveraged baseline that internal rate of return of approximately 21%.

第三季度，我們繼續承銷新交易，這些交易達到或超過了我們的無槓桿基準（內部收益率約為 21%）。

Lastly, current supply chain and labor markets are both stable for land development and home construction. We have seen minimal delay in land development as a result of material or labor shortages compared to a year ago cycle times for completing homes construction in the third quarter improved by almost 10 days sequentially and averaged 5.1 months.

最後，目前的土地開發和房屋建設供應鏈和勞動力市場都很穩定。我們發現，由於材料或勞動力短缺，土地開發的延遲最小化，與一年前相比，第三季完成房屋建設的周期時間連續縮短了近 10 天，平均為 5.1 個月。

This was one month shorter than third quarter of '23. Trophy cycle time was only 3.6 months in Dallas during the quarter. As we expand our operations in both existing and new markets, we believe we can achieve further efficiencies and cost savings through economies of scale. With that. I'll turn it over to Jim for closing remarks.

這比 2023 年第三季短了一個月。本季達拉斯的獎盃週期僅為 3.6 個月。隨著我們在現有市場和新市場擴大業務，我們相信我們可以透過規模經濟進一步提高效率並節省成本。就這樣。我將把它交給吉姆做總結發言。

Thank you, Jed.

謝謝你，傑德。

As we conclude today's call, I would like to reflect on our success as we celebrate our 10 year anniversary as a public company.

在我們結束今天的電話會議時，我想回顧一下我們在慶祝上市公司成立 10 週年之際所取得的成功。

This decade has been marked by a remarkable growth and achievements, achieving milestones. And I would have imagined a decade ago, our team has accomplished so much and I am incredibly proud of what we have built.

這十年取得了顯著的成長和成就，實現了里程碑式的成就。我在十年前就可以想像，我們的團隊已經取得瞭如此多的成就，我對我們所建立的一切感到無比自豪。

I want to express my sincere gratitude to our employees whose hard work made this possible as well of our shareholders for their continued support.

我謹向我們的員工表達誠摯的謝意，感謝他們的辛勤工作，以及我們的股東的持續支持。

Looking ahead, we are excited about the opportunities that lie ahead, particularly through our trophy brand, including our '25 initiatives to expand our Austin presence and begin selling in the Houston market.

展望未來，我們對未來的機會感到興奮，特別是透過我們的獎杯品牌，包括我們擴大奧斯汀業務並開始在休士頓市場銷售的 '25 舉措。

We remain committed to continuing to expand on the foundation we have created by building high quality communities where people want to live, attracting and retaining talented and dedicated team members and creating shareholder value.

我們仍然致力於在我們已經建立的基礎上繼續擴張，建立人們想要居住的高品質社區，吸引和留住有才華和敬業的團隊成員，並創造股東價值。

This concludes our prepared remarks and now we open the line for questions.

我們準備好的發言到此結束，現在我們開始提問。

(Operator Instructions).

（操作員說明）。

Our first question comes the line of (Alex Rigel), Alex. Your line is now.

我們的第一個問題是（亞歷克斯里格爾），亞歷克斯。你的線路現在是。

Thank you and a very, very nice quarter. Jim, I know it's still a little bit early, but maybe if you could help us to think about community count growth into '25. And then maybe Rick can help us to think about SG&A if 11% is a normalized level or is there some future additional leverage on that?

謝謝你們，這是一個非常非常美好的季度。Jim，我知道現在還為時過早，但也許您可以幫助我們考慮 25 年社區數量的成長。然後，也許 Rick 可以幫助我們考慮 SG&A，如果 11% 是正常水平，或者未來是否有一些額外的槓桿？

Sure, thanks Alex. We just went over this pretty broadly with the full team and Rick's probably the best prepared to do this because he just did it for us. So I can talk about community count.

當然，謝謝亞歷克斯。我們剛剛與整個團隊進行了相當廣泛的討論，而里克可能是最準備這樣做的，因為他只是為我們做了這件事。所以我可以談談社區數。

Yeah, I think really because of our spec heavy model, Alex, you know, we are, you are seeing the community count at the same time that you're seeing the starts. In other words, we'll start our first X number of months of homes and when we start selling them, you've already seen the starts hit and it's just a matter of getting them to the finish line. So in that model, you're really seeing that growth come about by the fact that it's transition upwards, it's the last three quarters, average over 1,000 and 15 starts and the most recent, I think this quarter was around 1,000 and 50. You know, so that's really what you're going to be keying off of here. In, in other words, it's that kind of pace that you're seeing.

是的，我認為這確實是因為我們的規格重型模型，亞歷克斯，你知道，我們是，你在看到開始的同時看到了社區計數。換句話說，我們將在前 X 個月內開始建造房屋，當我們開始出售它們時，您已經看到了開工，只需要讓它們到達終點線。因此，在該模型中，您確實會看到成長是透過向上過渡這一事實來實現的，過去三個季度平均啟動次數超過 1,000 和 15 次，最近一個季度大約是 1,000 和 50 次。你知道，這就是你要重點關注的事情。換句話說，這就是你所看到的那種節奏。

Alex, the other thing that makes it a little more difficult for analysts. And I think some investors is many of the communities that we're adding are larger trophy communities and those communities are going to have a much greater sales paces. So as we add these communities, our sales pace is not going to be correlated to those communities as much as it has been in the past because many of these communities should generate a lot of sales.

亞歷克斯，另一件事讓分析師變得更加困難。我認為一些投資者認為我們添加的許多社區都是更大的獎盃社區，這些社區的銷售速度將會更快。因此，當我們添加這些社區時，我們的銷售速度將不會像過去那樣與這些社區相關，因為其中許多社區應該會產生大量銷售。

In SG&A leverage.

在 SG&A 槓桿中。

We don't really discuss it that much, but it's going to remain pretty much constant. You know, obviously, we're going to grow the top line. There may be some benefit there.

我們並沒有真正討論太多，但它會保持不變。你知道，顯然，我們將增加收入。那裡可能有一些好處。

A couple and, then lastly, looks like you are entering the northern part of Austin, Texas. is that help us to sort of understand how that fits with the infill and infill adjacent sort of strategy of Green Brick and its broader entirety.

一對夫婦，最後，看起來您正在進入德克薩斯州奧斯汀的北部。這有助於我們理解它如何與 Green Brick 及其更廣泛的整體的填充和填充相鄰類型策略相適應。

Well, we are entering the Austin market. It does fit in with the infill and infill would be one of the largest deals that we just bought in. Austin is in Georgetown. That is a very desirable, a location neighborhood. The city itself is pretty well built out. How many lots we have there? 1,100 jet.

好吧，我們正在進入奧斯汀市場。它確實適合填充物，而填充物將是我們剛剛購買的最大交易之一。奧斯汀在喬治城。這是一個非常理想的位置社區。這座城市本身建設得相當好。我們那裡有多少塊土地？1,100 架飛機。

Yeah, access, you know, and really, we have most of the builders in Austin asking if we'll sell them lots there and they perceive it as an A plus location.

是的，你知道，事實上，奧斯汀的大多數建築商都在詢問我們是否願意向他們出售那裡的土地，他們認為這是A+位置。

Our strategy is to hopefully find more. It is like that, but it's a very competitive land market and we'll see, you know how that translates into on the 2025.

我們的策略是希望找到更多。確實如此，但這是一個競爭非常激烈的土地市場，我們拭目以待，你知道這會在 2025 年如何轉化。

Very helpful. Thank you.

非常有幫助。謝謝。

Thank you. And your next question comes from the line of (Carl Reichert with ETIG). Carl your line is now open.

謝謝。你的下一個問題來自（ETIG 的 Carl Reichert）。卡爾，您的線路現已開通。

Thanks. Hey guys, nice to talk to you. Jim, would you take a stab at giving us a sense of how October's trended with, with rates up? Obviously, we've heard from a number of your peers talking about some choppiness there. I'd like to hear your take.

謝謝。嘿夥計們，很高興和你們聊天。吉姆，您能否試著讓我們了解 10 月利率上漲的趨勢？顯然，我們從許多同行那裡聽到了一些不穩定的情況。我想聽聽你的看法。

Well, our take actually, we knew you're going to ask this or somebody on the on the call is Carl and our business is good and we're hesitant to start giving month to month cops comps because even though it's good, you know, I as a CEO, I don't only want parse good news and we think if we start giving monthly data that we need to give monthly data all the time, so we're going to stay away from that other than saying we're still optimistic and we think business is good.

好吧，實際上，我們的看法是，我們知道您會問這個問題，或者接聽電話的人是卡爾，我們的業務很好，我們猶豫是否要開始每月提供警察補償，因為即使它很好，你也知道，我作為首席執行官，我不僅想解析好消息，而且我們認為，如果我們開始提供每月數據，我們需要一直提供每月數據，所以我們將遠離這一點，除了說我們’我們仍然樂觀，我們認為生意很好。

Okay, fair enough. And then, so Rick, you and I have talked a lot, all of us have talked about looking at your delivery volume and looking at your starts comparing the two and kind of looking at volume, two quarters out from your starts pace and, and as the business mix changes. Well, first of all, cycle times have started to improve some more business mixes, shift to trophy, you're building those faster. Is that relationship sort of two quarters out from starts pace still, still likely to hold as we move into '25 or do you think that that pace will quicken some or change?

好吧，很公平。然後，里克，你和我談了很多，我們所有人都談到了查看你的交付量並查看你的開始，比較兩者以及查看數量，距離你的開始速度有兩個季度，並且隨著業務組合的變化。好吧，首先，週期時間已經開始改善更多的業務組合，轉向獎杯，你正在更快地建立這些。當我們進入 25 世紀時，這種關係是否仍然比開始的速度慢了兩個季度，仍然可能保持不變，還是您認為這種速度會加快或改變？

I don't think it will change appreciably and, you know, and it's a, mix of deliveries. So, 2 to 3 is really what the answer is going to be. And also, you know, if you go strictly by two quarters, then you're assuming that there's no change in our finished inventory levels at all which and when, when rates are volatile, that's not necessarily reasonable assumption. So I'd say 2 to 3 is probably a better guess.

我不認為它會發生明顯的變化，而且，你知道，這是一種交付的混合。所以，2 到 3 才是真正的答案。而且，你知道，如果你嚴格按照兩個季度計算，那麼你就假設我們的成品庫存水準根本沒有變化，而當利率波動時，這不一定是合理的假設。所以我認為 2 到 3 可能是更好的猜測。

2 to 3. We did a little over 1,000 starts in the third quarter. That's really a nice cadence. We think we're seeing demand is very elastic. You may have to throw some incentives at it to, to make a house sale. But, really, I think the cadence right now is that we're comfortable in maintaining, is that around 1,000 starts right yet and trying to match sales to it and hopefully, rates don't go up anymore and they go down. So we don't have to attract people buyers with incentives. Yeah.

2至3。第三季我們的先發次數略多於 1,000 次。這確實是一個很好的節奏。我們認為需求非常有彈性。您可能需要給予一些誘因才能出售房屋。但是，實際上，我認為現在的節奏是我們能夠輕鬆維持的，大約有 1,000 個項目正在啟動，並試圖將銷量與其相匹配，希望利率不會再上升，而是會下降。所以我們不必用激勵措施來吸引買家。是的。

Unless there's some dramatic change, we'll be starting at least 1,000 homes every quarter.

除非發生重大變化，否則我們每季將啟動至少 1,000 套住房。

Okay, great. That's, that's very helpful. Thanks. If I can squeeze one more and just, just on cash flow, you, you've been effectively OCF, neutral all year, all three quarters, basically. You're a little different than other builders. Often we see a bigger build up in, in OCF, in the fourth quarter. Rick, what are, what's your thinking on where OCF might end up in, in Q4? Will you end up being more positive for the year? Will that be a big flush quarter for you? Or, will the investments in land sort of suck up the OCF you'd otherwise generate from closing?

好的，太好了。那是，這非常有幫助。謝謝。如果我能再壓縮一點，就現金流而言，你基本上全年、全部三個季度都保持著有效的 OCF、中立狀態。你和其他建造者有點不同。我們經常在第四季看到 OCF 出現更大的成長。Rick，您認為 OCF 在第四季可能會走向何方？今年你會變得更積極嗎？這對你來說會是一個大繁榮的季度嗎？或者，對土地的投資是否會吸收您原本透過關閉而產生的 OCF？

Yeah, that you got to extreme in this area and our land closings, especially when some of the bigger deals close. We also had a situation in the, IR and worth of forgiveness on our es our estimated tax payments that are not due until the fourth quarter because of the wind shear event we had in Texas. So, that bill comes due and in effect, we have to pay three quarters of our taxes in Q4. So I think between that and the land deals, are highly unpredictable but, you know, we may start to borrow on our lines of credit here and when and would expect that to be a good answer. I mean, we're, spending $700 million this year and that's likely to go up next year because we're finding good opportunities. So, but yeah, all within range where less than 16 per or around 16% that to total capital, don't see that changing dramatically, maybe up to 20% at some point.

是的，你在這個領域和我們的土地關閉上變得極端，特別是當一些更大的交易結束時。我們還遇到了 IR 的情況，以及我們的估計稅款的寬恕，由於德克薩斯州發生了風切事件，我們的估計稅款要到第四季度才能到期。因此，該法案到期並生效，我們必須在第四季度繳納四分之三的稅款。因此，我認為，在這與土地交易之間，是高度不可預測的，但是，你知道，我們可能會在此時此刻開始用我們的信貸額度借款，並希望這是一個很好的答案。我的意思是，我們今年花了 7 億美元，明年可能會增加，因為我們正在尋找好的機會。所以，但是，是的，所有這些都在不到 16% 或佔總資本 16% 左右的範圍內，不會看到這種巨大變化，在某個時候可能會高達 20%。

Okay, I appreciate that. Thanks a lot guys.

好的，我很欣賞。非常感謝大家。

(Operator Instructions) our next question is Jay McCanless with Wedbush and J their line is now open. Thank you.

（操作員說明）我們的下一個問題是 Jay McCanless 和 Wedbush 以及 J，他們的線路現已開通。謝謝。

Alright, thanks. So. What levels of, of base pricing adjustments you guys are having to do versus maybe just incidents around closing costs or, or rate, buy downs just wondering how, how deep you're able to cut kind of get homes moving in this environment.

好的，謝謝。所以。你們必須進行什麼程度的基本定價調整，而不是可能只是圍繞成交成本或利率的事件，只是想知道在這種環境下，你們能夠如何、多深地削減讓房屋搬遷的費用。

Yeah. it's mainly incentive driven. We really don't want to touch base pricing unless we have to. And so it's really Jay, it's really been month to month, you know, looking at our incentive grid, you know, July was a tough month, which is always a tough month. Things got better in August and better in September and, and, and continue to be relatively consistent in October.

是的。主要是激勵驅動的。除非迫不得已，否則我們真的不想觸及基本定價。所以這真的是傑伊，真的是一個月又一個月，你知道，看看我們的激勵網格，你知道，七月是一個艱難的月份，這總是一個艱難的月份。八月情況好轉，九月情況好轉，十月情況持續相對穩定。

Consistent with, with September to October consistent, which mean they're.

一致，與九月到十月一致，這意味著它們是。

Yeah, I mean, if you want to look over the past 90 to 100 days, you could use 6% incentives as a, as a good guide.

是的，我的意思是，如果您想查看過去 90 到 100 天，您可以使用 6% 的激勵措施作為一個很好的指導。

That's great. And then I guess the other question I had, you know, is, are there any new markets? You know, I know one of the previous questioners asked about North Austin but anything that, that you guys are looking at getting deeper, whether it's around the Atlanta market, around Dallas, anything we should be keeping our eye on.

那太棒了。然後我想我的另一個問題是，有沒有新的市場？你知道，我知道之前的一位提問者問過有關北奧斯汀的問題，但是你們正在考慮深入探討的任何事情，無論是亞特蘭大市場周圍還是達拉斯周圍，我們應該密切關注的任何事情。

Well, we're always, you know, interested in finding a good deal. We just don't see very many good deals and right markets.

嗯，你知道，我們總是對找到划算的交易感興趣。我們只是沒有看到很多好的交易和合適的市場。

And if you take a look at a kind of our strategy over the next five years, we're in Dallas, the largest market or now, maybe the second largest market. Houston is either arguably the first or second largest market. Atlanta is the fourth or fifth largest market and our runway for growth in these markets that we're continuing to improve our operational skills and buying more and more land and seeing a better deal flow. You know, that gives us really a fantastic runway for growing the business. We found some great builder in Charlotte. We'd love to buy it. But we're really happy with owning 37,000 lots in the markets I just talked about and that really provides a nice runway for our business for the next five years.

如果你看我們未來五年的策略，我們在達拉斯，最大的市場，或現在，可能是第二大市場。休士頓可以說是第一或第二大市場。亞特蘭大是第四或第五大市場，也是我們在這些市場中成長的跑道，我們將繼續提高我們的營運技能，購買越來越多的土地，並看到更好的交易流。您知道，這確實為我們發展業務提供了絕佳的跑道。我們在夏洛特找到了一些很棒的建築商。我們很樂意購買它。但我們對在我剛才談到的市場上擁有 37,000 塊土地感到非常高興，這確實為我們未來五年的業務提供了良好的跑道。

Okay. That sounds great. Thank you.

好的。聽起來很棒。謝謝。

(Operator Instructions). All right. Well, I don't see any further questions on the line. So I wanted to thank everybody for joining us for today's call. This does conclude our call today. So again, thank you for joining and you are now free to disconnect. Thank you.

（操作員說明）。好的。嗯，我沒有看到任何進一步的問題。所以我想感謝大家參加今天的電話會議。我們今天的電話會議到此結束。再次感謝您的加入，現在您可以隨時斷開連線。謝謝。