Tri Pointe Homes : First Quarter 2024 Presentation

2024 First Quarter

Results

April 25, 2024

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 limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects, and capital spending. Forward-looking statements in this presentation are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "intend," "anticipate," "potential," "plan," "goal," "target," "guidance," "outlook," "will," "future," "strategy," or other words that convey future events or outcomes. Forward-looking statements in this presentation speak only as of the date of this presentation, and we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. These forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. The following factors, among others, may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements: the effects of general economic conditions, including employment rates, housing starts, interest rate levels, home affordability, inflation, consumer sentiment, availability of financing for home mortgages and strength of the U.S. dollar; market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such parcels; access to adequate capital on acceptable terms; geographic concentration of our operations; levels of competition; the successful execution of our internal performance plans, including restructuring and cost reduction initiatives; the prices and availability of supply chain inputs, including raw materials, labor and home components; oil and other energy prices; the effects of U.S. trade policies, including the imposition of tariffs and duties on homebuilding products and retaliatory measures taken by other countries; the effects of weather, including the occurrence of drought conditions in parts of the western United States; the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters; the risk of loss from acts of war, terrorism, civil unrest or public health emergencies, including outbreaks of contagious disease, such as COVID-19; transportation costs; federal and state tax policies; the effects of land use, environment and other governmental laws and regulations; legal proceedings or disputes and the adequacy of reserves; risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects; changes in accounting principles; risks related to unauthorized access to

our computer systems, theft of our homebuyers' confidential information or other forms of cyber-attack; and additional factors discussed under the

sections captioned "Risk Factors" included in our annual and quarterly reports filed with the Securities and Exchange Commission. The foregoing list is not exhaustive. New risk factors may emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risk factors on our business. This presentation includes certain non-GAAP financial metrics, including adjusted homebuilding gross margin and net debt-to-net capital. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Supplemental Data and Reconciliation section of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.

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Management Team

Thomas Mitchell

President & COO

• Over 30 years of real estate and homebuilding experience
• Former EVP and Southern California Regional President at William Lyon Homes

Douglas Bauer	Glenn Keeler
Chief Executive Officer	Chief Financial Officer
• Over 30 years of real estate and	• Over 10 years of real estate
homebuilding experience	and homebuilding experience
• Former President and COO of	• CAO for Tri Pointe since 2014
William Lyon Homes

Tri Pointe senior management has significant experience running a large, geographically diverse, growth-oriented public homebuilder. Deep managerial talent at each operating division with key local relationships supports dynamic tailored growth strategies.

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A diversified portfolio of markets

West Segment

Markets: San Francisco Bay Area, Inland

Empire, Orange County-Los Angeles,

Sacramento, San Diego, Phoenix, Las Vegas,

Seattle Metro Area

LTM Orders: 3,604

LTM Deliveries: 3,316

LTM HS Revenue: $2,477,392

LTM ASP: $747

Lots Owned or Controlled: 15,534

	East Segment
	Markets: Washington DC Metro Area,
	Charlotte, Raleigh, Coastal Carolinas,
	Orlando
	LTM Orders: 831
	LTM Deliveries: 773
	LTM HS Revenue: $473,269
	LTM ASP: $612
	Lots Owned or Controlled: 5,720
Central Segment
Markets: Houston, Austin, Dallas-Fort Worth,
Denver, Utah
LTM Orders: 1,882
LTM Deliveries: 1,513
LTM HS Revenue: $853,323
LTM ASP: $564
Lots Owned or Controlled: 12,899
LTM Orders: 6,317	LTM Deliveries: 5,602
LTM Home Sales ("HS") Revenue: $3,803,984	LTM Average Sales Price ("ASP"): $679
Lots Owned or Controlled: 34,153

2024 First

Quarter

Highlights

2024 First Quarter Highlights

• Net new home orders up 12% and absorption rate of 3.9 net new home orders per community per month
• New home deliveries up 31% to 1,393 with an average sales price of $659,000

Metric	1Q24	1Q23	% Change
Orders	1,814	1,619	12%

•	Backlog units(1) up 35% to 2,741 homes and backlog dollar
	value (1) up 30% to $1.95 billion
•	Home sales revenue increased 20% to $918 million
•	Homebuilding gross margin decreased 50 basis points to 23.0%.
	Adjusted homebuilding gross margin(2) increased by 20 basis
	points to 26.4%.
•	SG&A expense decreased 40 basis points to 11.1% of home
	sales revenue
•	Net income available to common stockholders of $99 million,
	or $1.03 per diluted share, vs. $75 million, or $0.73 per diluted

Deliveries	1,393	1,065
ASP of Deliveries ($000)	$659	$722
Ending Active Selling Communities	156	136
Backlog (units)(1)	2,741	2,026
Backlog (dollar value) ($mm)(1)	$1,951	$1,503
Home Sales Revenue ($mm)	$918	$768
HB Gross Margin	23.0%	23.5%

31%

-9%

15%

35%

30%

20%

-50 bps

	share
•	Repurchased 1.4 million shares for an aggregate dollar amount
	of $50 million
•	Ended with total liquidity of $1.6 billion, including cash and
	cash equivalents of $944 million and $703 million of availability
	under our unsecured revolving credit facility

Adjusted HB Gross Margin(2)

SG&A Expense (% of Home Sales Revenue)

Income Before Income Taxes ($mm)

Net Income Available to Common Stockholders ($mm)

EPS (Diluted)

26.4% 26.2%

11.1% 11.5%

$131 $103

$99 $75

$1.03 $.73

20 bps

-40 bps

27%

33%

41%

1. Backlog units and dollar value figures are as of March 31, 2024 and 2023, respectively
2. See "Reconciliation of Non-GAAP Measures" in the appendix of this presentation

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First Quarter Results

Active Selling Communities and Absorption Rate Q1 2024 Results

Active Selling Communities and Absorption Rate

Active Selling Communities by Geography

As of and for the quarters ended March 31, 2023 and 2024

175		4.0	3.9	156		4.5
				4.0
150		136
							3.5
125
								3.0
100						15% YOY
							2.5
75								2.0
50						Increase			1.5
								1.0
25
								0.5
0									0.0
2023	2024
		Communities				Absorption Rate

As of March 31, 2024

Washington

4%

California

28%

Nevada 6%

Arizona

9%

Washington

D.C. Area(2)

4%

Carolinas(1)

8%

Colorado

7%

Texas

34%

Opened 20 new communities and closed 19 communities in Q1 2024

1. Carolinas comprises North Carolina and South Carolina

(2)

Washington D.C. Area comprises Maryland, Virginia and the District of Columbia

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Net New Home Orders - Q1 2024 Results

Net New Home Orders

For the quarters ended March 31, 2023 and 2024

2,000

1,814

1,800

1,619

1,600

Net New Home Orders by Geography

For the quarter ended March 31, 2024

Washington

D.C. Area(2)

Washington 4%

Carolinas(1)

1,400
1,200		YOY
1,000
12%
800		Increase
600
400
200

6%

California 34%

10%

Colorado

2%

Texas 27%

0
2023	2024

Nevada	Arizona
8%
9%

(1) Carolinas comprises North Carolina and South Carolina

(2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia

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Backlog - Units and Dollar Value - Q1 2024 Results

Backlog - Units and Dollar Value

As of March 31, 2023 and 2024 (dollars in thousands)
3,000			2,741			2023	2024			$2,500,000
2,500			2,026	$1,950,590			$2,000,000
2,000			YOY	$1,503,382		YOY			$1,500,000
1,500
		35%						30%			$1,000,000
1,000			Increase						Increase
											$500,000
500
											$0
0
		Units				$ Value

$742K $712K Average Sales Price in Backlog

(1) Carolinas comprises North Carolina and South Carolina

(2) Washington D.C. Area comprises Maryland, Virginia and the District of Columbia

Backlog Dollar Value by Geography

As of March 31, 2024

	Washington
Washington	D.C. Area(2)
7%	9%
	Carolinas(1)
	8%
	Colorado
	2%
California
36%
	Texas
	23%
	Arizona
Nevada	10%
5%

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