Green Brick Partners, Inc.

being recorded and will be available for playback on the company's website. In addition, a presentation will accompany today's webcast, and it's 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. Some of the information discussed on this call is forward-looking, including the company's financial and operational expectations for 2025 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, February 27, 2025, and the company has no obligation to update any forward-looking statements it may make. These 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. Jim? Thank you, Rick.

We are extremely pleased to report record fourth quarter and full year 2024 results as we celebrate GreenBrick's 10th anniversary as a public company. During the fourth quarter, we closed a record 1,019 homes and grew home closing revenue by 24% year over year to the 557 million, over 80% of which were once again generated from infill and infill adjacent submarkets. Year over year, net sales orders in the fourth quarter increased 29% while average selling communities grew 19%. Net income attributable to Greenbrick during the fourth quarter grew 42% to $104 million, and diluted EPS increased 46% year-over-year to $2.31, both records for any fourth quarter in the company's history. 2024 was the best year in company history, as we achieved several milestones despite a challenging mortgage rate environment. Our diluted annual EPS of 845 beat last year's record EPS by 38%. Since 2015, Green Brick has been able to achieve substantial growth and expansion. Here are some of our achievements. Home closings grew almost six-fold from 665 units in 2015 to 3,783 in 2024, generating home closing revenues that exceeded $2 billion for the first time. Full year home building gross margins improved from 20.6% in 2015 to 33.8% in 2024, representing a 64% improvement to a level that is the highest gross margin performance among our public home building peers. Diluted EPS grew from $0.38 in 2015 to $8.45 in 2024, with adjusted diluted EPS of $8.21 after excluding the 24-cent after-tax impact of a warranty reserve reversal that we recorded in Q4, both resulting in a compounded annual growth rate of 41%. We are the third largest home builder in DFW, the nation's largest housing market based on the annual starts. Trophy Signature Homes, which started in 2018 and closed its first home in 2019, is now on its own the sixth largest builder in DFW. Furthermore, we have significantly strengthened our land and lot position. Total land inventory has grown almost eightfold, increasing from approximately 4,700 lots at the end of 2015 to over 37,800 lots at the end of 2024. This expansion was achieved while maintaining a low debt to total capital ratio of 17.2% at the end of 2024. which was the lowest year-end level since 2015. These achievements reflect the strength of our business model and balance sheet, the quality of our product and services, and the dedication of our exceptional team. Our workforce has expanded significantly from approximately 200 employees in 2015 to 650 in 2024. Their commitment has played a crucial role in our success and I would like to express my sincere gratitude for their invaluable contributions. While favorable housing fundamentals have provided general tailwinds for the industry, we believe there are several key factors specific to GreenBrick that have driven our success and exceptional performance. Land has always been the cornerstone of our business and one of our biggest strategic advantages. Over the last several years, we believe we have assembled one of the best land and lot positions in our industry. As with any real estate asset, location matters the most. Our footprints are concentrated in some of the fastest growing residential markets in the country, notably Dallas-Fort Worth and Atlanta, which both benefit from robust demographic trends and healthy job markets. Additionally, we have focused primarily on infill and infill adjacent submarkets where supply is more constrained, competition is more limited, and homes are more desirable. Secondly, we own 86% of our land in our balance sheet, and we self-develop over 95% of our lots. The scarcity of land developers with the ability to develop large residential master plan communities in our markets creates significant opportunities for GreenBrick and our subsidiary builders. By avoiding retail prices on land, which is often associated with the land light operating model, we have been able to effectively control our lot costs and development and delivery timelines, which are key drivers of our industry leading gross margins and returns. Since the start of 2022, we have generated home building gross margins in excess of 30%, with the exception of only three quarters. Our full year return on equity in 2024 was 26.8%. and return on assets was 18.2%. Return on equity and return on assets over the last five years averaged 25.7% and 16.2% respectively. Lastly, our superior returns have not been achieved at the expense of our community quality. We aspire to be more than just another home builder in our sub markets. We allocate significant capital and community development, emphasizing superior design, enhanced common area amenities, better landscaping, and other aesthetic features that contribute to long-term value appreciation. Over the years, our builders have won numerous prestigious awards in the industry and earned the reputation of building superior products. This strong reputation has proven invaluable in navigating the competitive land market and the complexities of entitlement the development process it fosters trust among land sellers municipalities and local governments establishing green brick as a reliable partner and a preferred builder developer as we enter our second decade we remain optimistic about the long-term housing demand despite the current challenges posed by elevated mortgage rates we expect that the entry of millennials and gen z into their prime home buying years will continue to fuel significant demand. Furthermore, the housing market remains undersupplied by an estimated 4 to 7 million units, while the existing home market inventory levels remain at historic lows. We are well positioned to further capitalize on this incremental demand. leveraging our superior land positions, particularly through our Trophy brand that specializes in more affordable housing options that cater to the largest segment of the potential homebuyer market. With that, I'll now turn it over to Rick, who will provide more detail regarding our financial results. Rick.

Thank you, Jim. Home closings revenue for the fourth quarter increased 24% year over year to $557 million, a company record. Record revenues were driven by the highest volume of closings in company history of 1,019 units, up 23.5% year-over-year. Closing ASP was essentially flat in Q4 versus Q4 2023 at $547,000, as TROPHY represented 51% of GreenBrick's total closings in 4Q24. Trophy sales reflected an ASP below the company average, as Trophy sells more first-time buyer and first-time move-up buyer inventory and perimeter locations. We continue to generate strong gross margins during the fourth quarter of 34.3%, up 290 basis points year-over-year. During the fourth quarter, we reduced our estimated warranty reserve which resulted in a positive impact of $13.2 million or 230 basis points to our quarterly home building gross margin. This adjustment was based on an analysis of our warranty reserve accruals compared to actual warranty spend, which was less than previously anticipated. This adjustment also reflects reductions in our risk exposures due to various factors, including a reduction of our structural warranty periods due to legislative changes and enhancements to our insurance compliance program with our subcontractors. Even after these adjustments, our warranty reserves remain at the high end of our peers based on estimated reserves versus actual warranty spend levels. The positive impact of the warranty adjustment was partially offset by slightly higher incentives in Q4 due to elevated mortgage rates. SG&A as a percentage of residential unit revenue for the fourth quarter improved 50 basis points year over year to 10.9%. Net income attributable to GreenBrick increased 42% year over year to $104 million, And diluted earnings per share for the quarter grew 46% to $2.31 per share, both company records for any fourth quarter. For the full year, we delivered 3,783 homes, which was 21.1% more units than 2023, generating home closings revenues of $2.07 billion, a record for the company and representing growth of 17.1% year over year. Home building gross margin increased 290 basis points to 33.8% for the full year, which was also a record. Net income attributable to GreenBrick increased 34.1% year over year to 382 million, and diluted EPS grew 37.6% over 2023 to $8.45 per share, the highest in company history. Net new home orders during the fourth quarter grew 29.3% year over year to 878, one of the highest growth rates among public home builders. For the full year 2024, our net new home sales totaled 3,681, an increase of 9.7% year over year. Backlog revenue at the end of the fourth quarter decreased 10.7% year over year to $496 million. Trophy continued to represent a low percentage of overall backlog revenue at less than 14%, as Trophy has continued to increase the percentage of spec homes it builds to meet the needs of its buyers. As a result, backlog ASP of $742,000 remained higher than our average sales price on delivered homes. Our community count at the end of 2024 increased 17% year-over-year to 106 active selling communities. 35%, which were trophy communities. Sales pace for the fourth quarter was 8.3 homes per average active selling community, which was up 9.2% over Q4 of 23. Our cancellation rate for the fourth quarter remained low at 7.8%, one of the lowest among public home building peers. We started 22% more homes in 2024 than the previous year, with 4,067 total starts in 2024. Total units under construction increased 14% at year end to 2,341 homes. At the end of the fourth quarter, our net debt to total capital ratio was 10.7%, and our total debt to total capital ratio was only 17.2%, which was down 390 basis points year over year to the lowest year end level since 2015. This was among the lowest leverage ratios of our small and mid-cap public home building peers. As of December 31, 2024, 93% of our outstanding debt is fixed rate with an interest rate of 3.3%. With that, I'll now turn it over to Jed. Jed?