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EX-32.2 - EXHIBIT 32.2 - TRI Pointe Group, Inc.tph10kex322.htm
EX-32.1 - EXHIBIT 32.1 - TRI Pointe Group, Inc.tph10kex321.htm
EX-31.2 - EXHIBIT 31.2 - TRI Pointe Group, Inc.tph10kex312.htm
EX-31.1 - EXHIBIT 31.1 - TRI Pointe Group, Inc.tph10kex311.htm
EX-23.1 - EXHIBIT 23.1 - TRI Pointe Group, Inc.tph10kex231q416.htm
EX-21.1 - EXHIBIT 21.1 - TRI Pointe Group, Inc.tph10kex211.htm
EX-12.1 - EXHIBIT 12.1 - TRI Pointe Group, Inc.tph10kex121.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________
FORM 10-K
_______________________________________________________________________________
(Mark One)
ý
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2016
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to
Commission File Number 1-35796
tripointelogoa02.jpg 
TRI Pointe Group, Inc.
(Exact Name of Registrant as Specified in Its Charter)
_______________________________________________________________________________
Delaware
 
61-1763235
(State or other Jurisdiction of Incorporation)
 
(I.R.S. Employer Identification No.)
19540 Jamboree Road, Suite 300
Irvine, California 92612
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (949) 438-1400
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Name of each exchange on which registered
Common Stock, par value $0.01 per share
 
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ý    No  ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  ý
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ý
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
ý
  
Accelerated filer
 
¨
 
 
 
 
Non-accelerated filer
 
o  (Do not check if a smaller reporting company) 
 
Smaller reporting company
 
¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes  ¨    No   ý
The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant on June 30, 2016, based on the closing price of $11.82 as reported by the New York Stock Exchange, was $1,719,493,500.
158,626,229 shares of common stock were issued and outstanding as of February 14, 2017.
DOCUMENTS INCORPORATED BY REFERENCE:
Portions from the registrant’s Proxy Statement relating to its 2017 Annual Meeting of Stockholders are incorporated by reference into Part III, Items 10, 11, 12, 13 and 14.




TRI Pointe Group, Inc.
ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 2016
 
Table of Contents
 
 
 
Page
Number
 
Part I
 
 
 
 
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
 
 
 
 
Part II
 
 
 
 
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
 
 
 
 
Part III
 
 
 
 
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
 
 
 
 
Part IV
 
 
 
 
Item 15.
 


- 1 -



CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This annual report on Form 10-K contains certain statements that are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are based on our current intentions, beliefs, expectations and predictions for the future, and you should not place undue reliance on these statements. These statements use forward-looking terminology, are based on various assumptions made by us, and may not be accurate because of risks and uncertainties surrounding the assumptions that are made.
Factors listed in this sectionas well as other factors not includedmay cause actual results to differ significantly from the forward-looking statements included in this annual report on Form 10-K. There is no guarantee that any of the events anticipated by the forward-looking statements in this annual report on Form 10-K will occur, or if any of the events occurs, there is no guarantee what effect it will have on our operations, financial condition, or share price.
We undertake no, and hereby disclaim any, obligation to update or revise any forward-looking statements, unless required by law. However, we reserve the right to make such updates or revisions from time to time by press release, periodic report, or other method of public disclosure without the need for specific reference to this annual report on Form 10-K. No such update or revision shall be deemed to indicate that other statements not addressed by such update or revision remain correct or create an obligation to provide any other updates or revisions.
Forward-Looking Statements
These forward-looking statements are generally accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “will,” “would,” or other words that convey the uncertainty of future events or outcomes. 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.
Risks, Uncertainties and Assumptions
The major risks and uncertaintiesand assumptions that are madethat affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:
the effect of general economic conditions, including employment rates, housing starts, interest rate levels, 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;
levels of competition;
the successful execution of our internal performance plans, including restructuring and cost reduction initiatives;
global economic conditions;
raw material prices;
oil and other energy prices;
the effect of weather, including the re-occurrence of drought conditions in California;  
the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters;
transportation costs;
federal and state tax policies;
the effect 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;
change 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
other factors described in “Risk Factors.”


- 2 -



EXPLANATORY NOTE
As used in this annual report on Form 10-K, references to “TRI Pointe”, “the Company”, “we”, “us”, or “our” in this annual report on Form 10-K (including in the consolidated financial statements and related notes thereto in this report) have the following meanings, unless the context otherwise requires:
For periods prior to July 7, 2015: TRI Pointe Homes, Inc., a Delaware corporation (“TRI Pointe Homes”) and its subsidiaries; and
For periods from and after July 7, 2015: TRI Pointe Group, Inc., a Delaware corporation (“TRI Pointe Group”) and its subsidiaries.
The following discussion and analysis should be read in conjunction with our audited consolidated financial statements and related notes thereto contained elsewhere in this annual report on Form 10-K.  The section entitled “Risk Factors” set forth in Part I, Item 1A of this annual report on Form 10-K discusses some of the important risk factors that may affect our business, results of operations and financial condition.  Investors should carefully consider those risks, in addition to the information in this annual report on Form 10-K, before deciding to invest in, or maintain an investment in, our common stock. “Winchester” is a registered trademark and is used with permission.

 

- 3 -



PART I.
Item 1.
Business

Our Company  
TRI Pointe was founded in April 2009, near the end of an unprecedented downturn in the national homebuilding industry.  Since then, we have grown from a Southern California fee homebuilder into a regionally focused national homebuilder with a portfolio of the following six quality homebuilding brands operating in 14 markets across eight states:
Maracay Homes in Arizona;
Pardee Homes in California and Nevada;
Quadrant Homes in Washington;
Trendmaker Homes in Texas;
TRI Pointe Homes in California and Colorado; and
Winchester Homes in Maryland and Virginia.
Our growth strategy is to capitalize on high demand in selected "core" markets with favorable population and employment growth as a result of proximity to job centers or primary transportation corridors.  As of December 31, 2016, our operations consisted of 124 active selling communities and 28,309 lots owned or controlled.  See “Lots Owned or Controlled” below.  Our construction expertise across an extensive product offering allows us flexibility to pursue a wide array of land acquisition opportunities and appeal to a broad range of potential homebuyers, including buyers of entry-level, move-up and luxury homes.  As a result, we build across a variety of base sales price points, ranging from approximately $212,000 to $2.2 million, and home sizes, ranging from approximately 1,200 to 6,200 square feet.  See “Description of Projects and Communities under Development” below.  For the years ended December 31, 2016 and 2015, we delivered 4,211 and 4,057 homes and the average sales price of our new homes delivered was approximately $553,000 and $565,000, respectively.
Our founders firmly established our core values of quality, integrity and excellence.  These are the driving forces behind our innovative designs and strong commitment to our homebuyers.
Formation of TRI Pointe Group
On July 7, 2015, TRI Pointe Homes reorganized its corporate structure (the “Reorganization”) whereby TRI Pointe Homes became a direct, wholly owned subsidiary of TRI Pointe Group.  As part of the Reorganization, we rebranded as TRI Pointe Group, while retaining TRI Pointe Homes as a regional homebuilding brand. As a result of the Reorganization, each share of common stock, par value $0.01 per share, of TRI Pointe Homes (“TRI Pointe Homes Common Stock”) was cancelled and converted automatically into the right to receive one validly issued, fully paid and non-assessable share of common stock, par value $0.01 per share, of TRI Pointe Group (“TRI Pointe Group Common Stock”), each share having the same designations, rights, powers and preferences, and the qualifications, limitations and restrictions thereof as the shares of TRI Pointe Homes Common Stock being so converted.  TRI Pointe Group, as the successor issuer to TRI Pointe Homes (pursuant to Rule 12g-3(a) under the Exchange Act), began making filings under the Securities Act and the Exchange Act on July 7, 2015, and TRI Pointe Group Common Stock continued to trade on the New York Stock Exchange (“NYSE”) under the ticker symbol “TPH”.
In connection with the Reorganization, TRI Pointe Group (i) became a co-issuer of TRI Pointe Homes’ 4.375% Senior Notes due 2019 (“2019 Notes”) and TRI Pointe Homes' 5.875% Senior Notes due 2024 (“2024 Notes”); and (ii) replaced TRI Pointe Homes as the borrower under TRI Pointe Homes’ existing unsecured revolving credit facility.

- 4 -



The business, executive officers and directors of TRI Pointe Group, and the rights and limitations of the holders of TRI Pointe Group Common Stock immediately following the Reorganization were identical to the business, executive officers and directors of TRI Pointe Homes, and the rights and limitations of holders of TRI Pointe Homes Common Stock immediately prior to the Reorganization.
Merger with WRECO
On July 7, 2014 (the “Closing Date”), TRI Pointe Homes consummated the previously announced merger (the “Merger”) with Weyerhaeuser Real Estate Company (“WRECO”), in which WRECO became a wholly owned subsidiary of TRI Pointe Homes. In the Merger, TRI Pointe issued 129,700,000 shares of common stock to the former holders of WRECO common shares, together with cash in lieu of any fractional shares. Immediately following the consummation of the Merger, the ownership of TRI Pointe common stock on a fully diluted basis was as follows: (i) the WRECO common shares held by former shareholders of Weyerhaeuser Company, the former parent of WRECO (“Weyerhaeuser”), were converted into the right to receive, in the aggregate, approximately 79.6% of the then outstanding TRI Pointe common stock, (ii) the TRI Pointe common stock outstanding immediately prior to the consummation of the Merger represented approximately 19.4% of the then outstanding TRI Pointe common stock, and (iii) the outstanding equity awards of WRECO and TRI Pointe employees represented the remaining approximately 1.0% of the then outstanding TRI Pointe common stock. References in this annual report on Form 10-K to “legacy TRI Pointe” means the operations of TRI Pointe before the Closing Date. Following the Closing Date, WRECO was renamed “TRI Pointe Holdings, Inc.”
Our Competitive Strengths
We believe the following strengths provide us with a significant competitive advantage in implementing our business strategy:
Experienced and Proven Leadership
Douglas Bauer, our Chief Executive Officer, Thomas Mitchell, our President and Chief Operating Officer, and Michael Grubbs, our Chief Financial Officer, have worked together for over 25 years and have a successful track record of managing and growing a public homebuilding company.  Spanning over a century, their combined real estate industry experience includes land acquisition, financing, entitlement, development, construction, marketing and sales of single-family detached and attached homes in communities in a variety of markets.  In addition, each of the presidents of our homebuilding subsidiaries has substantial industry knowledge and local market expertise.  The average homebuilding experience of these presidents exceeds 20 years.  We believe that our management team's prior experience, extensive relationships and strong local reputations provide us with a competitive advantage in securing projects, obtaining entitlements, building quality homes and completing projects within budget and on schedule.
Focus on High Growth Core Markets
Our business is well-positioned to capitalize on the broader national housing market recovery.  We are focused on the design, construction and sale of innovative single-family detached and attached homes in major metropolitan areas in California, Colorado, Houston and Austin, Phoenix and Tucson, Las Vegas, the Washington, D.C. metro area and the Puget Sound region of Washington State.  These markets are generally characterized by high job growth and increasing populations, creating strong demand for new housing.  We believe they represent attractive homebuilding markets with opportunities for long-term growth and that we have strong land positions strategically located within these markets.  Moreover, our management team has deep, local market knowledge of the homebuilding and development industries.  We believe this experience and strong relationships with local market participants enable us to source, acquire and entitle land efficiently.
Strong Operational Discipline and Controls
Our management team pursues a hands-on approach.  Our strict operating discipline, including financial accountability at the project management level, is a key part of our strategy to maximize returns while minimizing risk.
Acquire Attractive Land Positions While Reducing Risk
We believe that our reputation and extensive relationships with land sellers, master plan developers, financial institutions, brokers and other builders enable us to continue to acquire well-positioned land parcels in our target markets and provide us access to a greater number of acquisition opportunities.  We believe our expertise in land development and planning enables us to create desirable communities that meet or exceed our homebuyers' expectations, while operating at competitive costs.

- 5 -



Increase Market Position in Growth Markets
We believe that there are significant opportunities to expand profitably in our existing and target markets, and we continually review our selection of markets based on both aggregate demographic information and our own operating results.  We use the results of these reviews to re-allocate our investments to those markets where we believe we can maximize our profitability and return on capital over the next several years.  While our primary growth strategy has focused on increasing our market position in our existing markets, we may, on an opportunistic basis, explore expansion into other markets through organic growth or acquisition.
Provide Superior Design and Homeowner Experience and Service
We consider ourselves a "progressive" homebuilder driven by an exemplary homeowner experience, cutting-edge product development and exceptional execution.  Our core operating philosophy is to provide a positive, memorable experience to our homeowners through active engagement in the building process, tailoring our product to homeowners' lifestyle needs and enhancing communication, knowledge and satisfaction.  We believe that the new generation of home buying families has different ideas about the kind of home buying experience it wants.  As a result, our selling process focuses on the home's features, benefits, quality and design in addition to the traditional metrics of price and square footage.  In addition, we devote significant resources to the research and design of our homes to better meet the needs of our homebuyers.  Through our LivingSmart® platform, we provide homes that we believe are earth-friendly, enhance homeowners' comfort, promote a healthier lifestyle and deliver tangible operating cost savings versus less efficient resale homes.  Collectively, we believe these steps enhance the selling process, lead to a more satisfied homeowner and increase the number of homebuyers referred to our communities.
Offer a Diverse Range of Products
We are a builder with a wide variety of product offerings that enable us to meet the specific needs of each of our core markets, which we believe provides us with a balanced portfolio and an opportunity to increase market share.  We have demonstrated expertise in effectively building homes across product offerings from entry-level through first-time and second-time move-up housing.  We spend extensive time studying and designing our products through the use of architects, consultants and homebuyer focus groups for all levels and price points in our target markets.  We believe our diversified product strategy enables us to best serve a wide range of homebuyers, adapt quickly to changing market conditions and optimize performance and returns while strategically reducing portfolio risk.  Within each of our core markets we determine the profile of homebuyers we hope to address and design neighborhoods and homes with the specific needs of those homebuyers in mind.
Focus on Efficient Cost Structure and Target Attractive Returns
Our experienced management team is vigilant in maintaining its focus on controlling costs.  We competitively bid new projects and phases while maintaining strong relationships with our trade partners by managing production schedules closely and paying our vendors on time.
We combine decentralized management in those aspects of our business in which we believe detailed knowledge of local market conditions is critical (such as governmental processing, construction, land acquisition, land development and sales and marketing), with centralized management in those functions in which we believe central control is required (such as approval of land acquisitions, financial, treasury, human resources and legal matters).  We have also made significant investments in systems and infrastructure to operate our business efficiently and to support the planned future growth of our company as a result of executing our expansion strategy.
Utilize Prudent Leverage
Our ongoing financial strategy includes redeployment of cash flows from continuing operations and debt to provide us with the financial flexibility to access capital on the best terms available.  In that regard, we expect to employ prudent levels of leverage to finance the acquisition and development of our lots and construction of our homes.  See "Our Financing Strategy" below.
Lots Owned or Controlled
As of December 31, 2016, we owned or controlled, pursuant to land option contracts or purchase contracts, an aggregate of 28,309 lots.  We refer to lots that are under land option contracts as "controlled," see "Acquisition Process" below.  Excluded from lots owned or controlled are those related to Note 8, Investments in Unconsolidated Entities, of the notes to our consolidated financial statements included elsewhere in this annual report on Form 10-K. The following table presents certain information with respect to our lots owned or controlled as of December 31, 2016.
 

- 6 -



 
Lots
Owned
 
Lots
Controlled
 
Lots
Owned or
Controlled
Maracay Homes
1,667

 
386

 
2,053

Pardee Homes
16,041

 
871

 
16,912

Quadrant Homes
1,027

 
555

 
1,582

Trendmaker Homes
1,687

 
312

 
1,999

TRI Pointe Homes
3,073

 
406

 
3,479

Winchester Homes
1,788

 
496

 
2,284

Total
25,283

 
3,026

 
28,309


Description of Projects and Communities under Development
Our lot inventory includes land that we are holding for future development.  The development of these lots will be subject to a variety of marketing, regulatory and other factors and in some cases we may decide to sell the land prior to development.  The following table presents project information relating to each of our markets as of December 31, 2016 and includes information on current projects under development where we are building and selling homes as of December 31, 2016.

- 7 -



Maracay Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31,2016
 
Lots
Owned as of
December 31,2016(3)
 
Backlog as of
December 31,2016(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31,2016
 
Sales Price
Range(in thousands)(6)
Phoenix, Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
Verrado Tilden
2012
 
102

 
102

 

 

 
8

 
 $239 - $304
Verrado Palisades
2015
 
63

 
33

 
30

 
13

 
17

 
 $311 - $384
Verrado Victory
2015
 
98

 
30

 
68

 
7

 
13

 
 $357 - $392
City of Chandler:
 
 
 
 
 
 
 
 
 
 
 
 
 
Artesian Ranch
2013
 
90

 
90

 

 

 
33

 
 $344 - $400
Vaquero Ranch
2013
 
74

 
74

 

 

 
7

 
 $298 - $373
Maracay at Layton Lakes
2015
 
47

 
47

 

 

 
36

 
 $484 - $524
Sendera Place
2015
 
79

 
58

 
21

 
15

 
46

 
 $277 - $324
Hawthorn Manor
2017
 
84

 

 
84

 

 

 
 $489 - $521
Town of Gilbert:
 
 
 
 
 
 
 
 
 
 
 
 
 
Arch Crossing at Bridges of Gilbert
2014
 
67

 
67

 

 

 
7

 
$283 - $341
Trestle Place at Bridges of Gilbert
2014
 
73

 
73

 

 

 
10

 
$344 - $424
Marquis at Morrison Ranch
2016
 
66

 
36

 
30

 
14

 
36

 
$410 - $497
Artisan at Morrison Ranch
2016
 
105

 
35

 
70

 
14

 
35

 
$318 - $371
Adora Trails
2017
 
82

 

 
82

 

 

 
$371 - $399
City of Goodyear:
 
 
 
 
 
 
 
 
 
 
 
 
 
Calderra at Palm Valley
2013
 
81

 
81

 

 

 
1

 
 Closed
Rio Paseo Villages
2018
 
117

 

 
117

 

 

 
 $199 - $219
Rio Paseo Cottages
2018
 
93

 

 
93

 

 

 
 $233 - $252
City of Mesa:
 
 
 
 
 
 
 
 
 
 
 
 
 
Kinetic Point at Eastmark
2013
 
80

 
75

 
5

 

 
15

 
 $284 - $362
Lumiere Garden at Eastmark
2013
 
85

 
75

 
10

 
2

 
15

 
 $331 - $407
Aileron Square at Eastmark
2016
 
58

 
24

 
34

 
13

 
24

 
 $331 - $407
Curie Court at Eastmark
2016
 
106

 
30

 
76

 
6

 
30

 
 $284 - $362
Palladium Point
2016
 
53

 
4

 
49

 
7

 
4

 
 $310 - $379
The Vista at Granite Crossing
2018
 
37

 

 
37

 

 

 
 $380 - $455
Town of Peoria:
 
 
 
 
 
 
 
 
 
 
 
 
 
The Reserve at Plaza del Rio
2013
 
162

 
135

 
27

 
19

 
48

 
 $226 - $270
Maracay at Northlands
2014
 
90

 
77

 
13

 
11

 
42

 
 $330 - $411
Legacy at The Meadows
2017
 
74

 

 
74

 
13

 

 
 $400 - $426
Estates at The Meadows
2017
 
99

 

 
99

 
22

 

 
 $459 - $533
Meadows 1 & 3
2018
 
299

 

 
299

 

 

 
 $365 - $523
City of Phoenix:
 
 
 
 
 
 
 
 
 
 
 
 
 
Navarro Groves
2018
 
20

 

 
20

 

 

 
 $373 - $406
Town of Queen Creek:
 
 
 
 
 
 
 
 
 
 
 
 
 
The Preserve at Hastings Farms
2014
 
89

 
88

 
1

 

 
45

 
 $300 - $385
Villagio
2013
 
135

 
129

 
6

 
4

 
40

 
 $291 - $352
Phoenix, Arizona Total
 
 
2,708

 
1,363

 
1,345

 
160

 
512

 
 
Tucson, Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
Marana:
 
 
 
 
 
 
 
 
 
 
 
 
 
Tortolita Vistas
2014
 
55

 
41

 
14

 
10

 
17

 
$458 - $515
Oro Valley:
 
 
 
 
 
 
 
 
 
 
 
 
 
Rancho del Cobre
2014
 
68

 
55

 
13

 
5

 
12

 
$410 - $478
Desert Crest - Center Pointe Vistoso
2016
 
103

 
13

 
90

 
13

 
13

 
$255 - $300
The Cove - Center Pointe Vistoso
2016
 
83

 
18

 
65

 
11

 
18

 
$335 - $395
Summit N & S - Center Pointe Vistoso
2016
 
88

 
23

 
65

 
21

 
23

 
$385 - $420
The Pinnacle - Center Pointe Vistoso
2016
 
69

 
22

 
47

 
21

 
22

 
$441 - $473
Tucson:
 
 
 
 
 
 
 
 
 
 
 
 
 
Deseo at Sabino Canyon
2014
 
39

 
39

 

 

 
2

 
$419 - $505
Ranches at Santa Catalina
2016
 
34

 
6

 
28

 
7

 
6

 
$404 - $450
Tucson, Arizona Total
 
 
539

 
217

 
322

 
88

 
113

 
 
Maracay Total
 
 
3,247

 
1,580

 
1,667

 
248

 
625

 
 


- 8 -



Pardee Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots
(2)
 
Cumulative
Homes
Delivered as of
December 31, 2016
 
Lots
Owned as of
December 31, 2016
(3)
 
Backlog as of
December 31, 2016
(4)(5)
 
Homes Delivered
for the Twelve
Months Ended
December 31, 2016
 
Sales Price
Range (in thousands)
(6)
California
 
 
 
 
 
 
 
 
 
 
 
 
 
San Diego County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Alta Del Mar Homes
2013
 
117

 
117

 

 

 
37

 
$1,800 - $2,200
Watermark
2013
 
160

 
160

 

 

 
29

 
$1,000 - $1,310
Canterra
2015
 
89

 
89

 

 

 
64

 
$760 - $910
Casabella
2015
 
139

 
100

 
39

 
18

 
78

 
$900 - $1,000
Verana
2015
 
78

 
78

 

 

 
40

 
$995 - $1,100
Casavia
2017
 
83

 

 
83

 
13

 

 
$980 - $1,000
Artesana
2017
 
56

 

 
56

 
6

 

 
$1,680 - $1,900
Pacific Highlands Ranch Future
TBD
 
769

 

 
769

 

 

 
TBD
Olive Hill Estate
2016
 
37

 
16

 
21

 
5

 
16

 
$650 - $770
Castlerock
2017
 
415

 

 
415

 

 

 
$510 - $770
Meadowood
TBD
 
844

 

 
844

 

 

 
$290 - $590
Parkview Condos
2016
 
73

 
36

 
37

 
26

 
36

 
$435 - $515
Luna
2017
 
96

 

 
96

 

 

 
$330 - $405
Azul
2017
 
121

 

 
121

 

 

 
$325 - $375
Ocean View Hills Future
2017
 
700

 

 
700

 

 

 
TBD
South Otay Mesa
TBD
 
893

 

 
893

 

 

 
$185 - $530
Los Angeles County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Aliento - Verana
2017
 
95

 

 
95

 

 

 
$495 - $615
Aliento - Arista
2017
 
112

 

 
112

 

 

 
$685 - $745
Aliento - 55x100
2018
 
94

 

 
94

 

 

 
$665 - $700
Aliento - 70x100
2018
 
67

 

 
67

 

 

 
$810 - $860
Skyline Ranch
TBD
 
1,260

 

 
1,260

 

 

 
 $510 - $640
Riverside County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Meadow Ridge
2013
 
132

 
132

 

 

 
24

 
$370 - $470
Meadow Glen
2014
 
142

 
140

 
2

 
2

 
51

 
$350 - $410
Amberleaf
2014
 
131

 
131

 

 

 
45

 
$320 - $370
Summerfield
2015
 
85

 
85

 

 

 
33

 
$310 - $330
Senterra
2016
 
82

 
25

 
57

 
14

 
25

 
$390 - $460
Vantage
2016
 
83

 
15

 
68

 
13

 
15

 
$350 - $380
Viewpoint
2016
 
75

 
18

 
57

 
17

 
18

 
$290 - $310
Overlook
2016
 
112

 
24

 
88

 
8

 
24

 
$305 - $335
Aura
2017
 
79

 

 
79

 
6

 

 
$340 - $360
Starling
2018
 
107

 

 
107

 

 

 
$385 - $400
Canyon Hills Future
2018
 
125

 

 
125

 

 

 
TBD
Tournament Hills Future
TBD
 
268

 

 
268

 

 

 
TBD
Woodmont
2014
 
84

 
84

 

 

 
16

 
$320 - $390
Cielo
2015
 
92

 
92

 

 

 
14

 
$220 - $275
Northstar
2015
 
92

 
66

 
26

 
6

 
48

 
$300 - $330
Skycrest
2015
 
102

 
68

 
34

 

 
38

 
$330 - $380
Flagstone
2016
 
79

 
34

 
45

 
3

 
34

 
$380 - $440
Lunetta
2016
 
112

 
55

 
57

 
5

 
55

 
$270 - $300
Elara
2016
 
118

 
20

 
98

 
21

 
20

 
$260 - $290
Sundance Future
TBD
 
1,353

 

 
1,353

 

 

 
TBD
Tierra Del Rey
2017
 
84

 

 
84

 

 

 
$390 - $430
Spencer's Crossing
2017
 
84

 

 
84

 

 

 
TBD
Manifee Heights
TBD
 
359

 

 
359

 

 

 
TBD
Banning
TBD
 
4,318

 

 
4,318

 

 

 
$170 - $250
Sacramento County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Natomas
TBD
 
120

 

 
120

 

 

 
TBD
San Joaquin County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Bear Creek
TBD
 
1,252

 

 
1,252

 

 

 
TBD
California Total
 
 
15,968

 
1,585

 
14,383

 
163

 
760

 
 
Nevada
 
 
 
 
 
 
 
 
 
 
 
 
 

- 9 -



Clark County:
 
 
 
 
 
 
 
 
 
 
 
 
 
LivingSmart at Eldorado Ridge
2012
 
169

 
169

 

 

 
9

 
$260 - $310
LivingSmart at Eldorado Heights
2013
 
135

 
135

 

 

 
13

 
 $310 - $395
LivingSmart Sandstone
2013
 
145

 
144

 
1

 
1

 
54

 
 $228 - $255
North Peak
2015
 
150

 
57

 
93

 
12

 
51

 
$282 - $336
Castle Rock
2015
 
150

 
61

 
89

 
12

 
57

 
$328 - $418
Camino
2016
 
86

 
23

 
63

 
14

 
23

 
$251 - $264
Eldorado Future
2017
 
59

 

 
59

 

 

 
 TBD
Solano
2014
 
132

 
117

 
15

 
2

 
56

 
 $300 - $335
Alterra
2014
 
47

 
45

 
2

 
1

 
20

 
 $425 - $505
Bella Verdi
2015
 
49

 
47

 
2

 
2

 
28

 
 $375 - $440
Escala
2016
 
154

 
19

 
135

 
8

 
19

 
 $515 - $580
Montero
2016
 
74

 
8

 
66

 
11

 
8

 
 $420 - $485
Strada
2017
 
116

 

 
116

 

 

 
 $380 - $400
Responsive Home
2016
 
2

 
2

 

 

 
2

 
$590 - $940
POD 5-1/2-2 Future
2017
 
31

 

 
31

 

 

 
TBD
Durango Ranch
2012
 
153

 
153

 

 

 
6

 
 $467 - $560
Durango Trail
2014
 
77

 
77

 

 

 
3

 
 $380 - $410
Meridian
2016
 
82

 
20

 
62

 
4

 
20

 
 $580 - $680
Encanto
2016
 
102

 
11

 
91

 
4

 
11

 
 $470 - $525
Encanto Townhomes
2018
 
70

 

 
70

 

 

 
 TBD
Horizon Terrace
2014
 
165

 
94

 
71

 
9

 
34

 
 $400 - $455
Horizon Valle Verde
2018
 
53

 

 
53

 

 

 
 TBD
Summerglen
2014
 
140

 
113

 
27

 
9

 
45

 
 $300 - $305
Keystone
2017
 
70

 
1

 
69

 
8

 
1

 
 $450 - $530
Cobalt
2017
 
107

 

 
107

 

 

 
 $340 - $370
Axis
2017
 
78

 

 
78

 

 

 
 $680 - $780
The Canyons at MacDonald Ranch - R
2017
 
22

 

 
22

 

 

 
 $535 - $565
Sunridge Heights
2017
 
108

 

 
108

 

 

 
 $392 - $455
Nova Ridge
2018
 
112

 

 
112

 

 

 
 $680 - $715
Tera Luna
2017
 
116

 

 
116

 

 

 
 $546 - $596
Nevada Total
 
 
2,954

 
1,296

 
1,658

 
97

 
460

 
 
Pardee Total
 
 
18,922

 
2,881

 
16,041

 
260

 
1,220

 
 

 

- 10 -



Quadrant Homes
County, Project, City
Year of
First Delivery
(1)
 
Total
Number of Lots
(2)
 
Cumulative
Homes
Delivered as of
December 31, 2016
 
Lots
Owned as of
December 31, 2016
(3)
 
Backlog as of
December 31, 2016
(4)(5)
 
Homes Delivered
for the Twelve
Months Ended
December 31, 2016
 
Sales Price
Range (in thousands)
(6)
Washington
 
 
 
 
 
 
 
 
 
 
 
 
 
Skagit County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Skagit Surplus Pod E, Mt Vernon
TBD
 
4

 

 
4

 

 

 
TBD
Snohomish County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Evergreen Heights, Monroe
2016
 
71

 
3

 
68

 
15

 
3

 
$450 - $515
The Grove at Canyon Park, Bothell
2017
 
60

 

 
60

 
11

 

 
$645 - $727
Greenstone Heights, Bothell
2017
 
41

 

 
41

 

 

 
$859 - $919
King County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Vintner's Place, Kirkland
2016
 
35

 
20

 
15

 
15

 
20

 
$732 - $850
Copperwood, Renton
2016
 
46

 
21

 
25

 
19

 
21

 
$650 - $737
Viscaia, Bellevue
2017
 
18

 

 
18

 
1

 

 
$750 - $848
Trailside, Redmond
2017
 
9

 

 
9

 

 

 
$950 - $1,190
Parkwood Terrace, Woodinville
2017
 
15

 

 
15

 
3

 

 
$789 - $910
Hazelwood Ridge, Newcastle
2017
 
30

 

 
30

 
4

 

 
$805 - $905
Inglewood Landing, Sammamish
2018
 
21

 

 
21

 

 

 
$865 - $1,000
Jacobs Landing, Issaquah
2017
 
20

 

 
20

 

 

 
$935 - $1,000
Kirkwood Terrace, Sammamish
2017
 
12

 

 
12

 

 

 
$1,310 - $1,610
English Landing P2, Redmond
2017
 
25

 

 
25

 

 

 
$930 - $1,070
English Landing P1, Redmond
2018
 
50

 

 
50

 

 

 
$945 - $1,095
Heathers Ridge South, Redmond
2017
 
8

 

 
8

 
8

 

 
$725 - $1,008
Cedar Landing, North Bend
2018
 
138

 

 
138

 

 

 
$590 - $740
Monarch Ridge, Sammamish
2018
 
59

 

 
59

 

 

 
$860 - $975
Ray Meadows, Redmond
2018
 
27

 

 
27

 

 

 
$930 - $1,080
Wynstone, Federal Way
TBD
 
4

 

 
4

 

 

 
TBD
Breva, Bellevue
2017
 
29

 

 
29

 

 

 
$642 - $714
Canton Crossing, Maple Valley
2017
 
51

 

 
51

 

 

 
$560 - $655
Aurea, Sammamish
2018
 
41

 

 
41

 

 

 
$580 - $670
Pierce County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Harbor Hill S-9, Gig Harbor
2014
 
40

 
39

 
1

 

 
3

 
$422
Harbor Hill S-8, Gig Harbor
2015
 
33

 
32

 
1

 
1

 
28

 
$422
Harbor Hill S-7, Gig Harbor
2016
 
16

 
8

 
8

 
2

 
8

 
$422 - $470
The Enclave at Harbor Hill, Gig Harbor
2016
 
33

 
17

 
16

 
4

 
17

 
$495 - $550
Harbor Hill S-2, Gig Harbor
2018
 
41

 

 
41

 

 

 
$453 - $508
Harbor Hill S-5/6, Gig Harbor
2017
 
72

 

 
72

 

 

 
$427 - $482
Thurston County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Campus Fairways, Lacey
2015
 
39

 
38

 
1

 
1

 
25

 
$430
Kitsap County:
 
 
 
 
 
 
 
 
 
 
 
 
 
McCormick Meadows, Port Orchard
2012
 
167

 
166

 
1

 
1

 
47

 
$300
Mountain Aire, Poulsbo
2016
 
145

 
29

 
116

 
16

 
29

 
$405 - $455
Closed Communities
N/A
 

 

 

 

 
182

 
N/A
Washington Total
 
 
1,400

 
373

 
1,027

 
101

 
383

 
 
Quadrant Homes Total
 
 
1,400

 
373

 
1,027

 
101

 
383

 
 
 




- 11 -



Trendmaker Homes
County, Project, City
Year of
First Delivery
(1)
 
Total
Number of Lots
(2)
 
Cumulative
Homes
Delivered as of
December 31, 2016
 
Lots
Owned as of
December 31, 2016
(3)
 
Backlog as of
December 31, 2016
(4)(5)
 
Homes Delivered
for the Twelve
Months Ended
December 31, 2016
 
Sales Price
Range(in thousands)
(6)
Texas
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazoria County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Sedona Lakes, Pearland
2014
 
34

 
21

 
13

 
1

 
4

 
 $404 - $458
Southern Trails, Pearland
2014
 
40

 
40

 

 

 
11

 
 $499 - $550
Pomona, Manvel
2016
 
31

 
5

 
26

 
6

 
5

 
 $358 - $450
Rise Meridiana
2016
 
21

 
1

 
20

 
8

 
1

 
 $303 - $336
Fort Bend County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross Creek Ranch 60', Fulshear
2013
 
109

 
78

 
31

 
4

 
7

 
 $364 - $453
Cross Creek Ranch 65', Fulshear
2013
 
103

 
75

 
28

 
5

 
13

 
 $416 - $475
Cross Creek Ranch 70', Fulshear
2013
 
117

 
95

 
22

 
5

 
14

 
 $460 - $520
Cross Creek Ranch 80', Fulshear
2013
 
123

 
111

 
12

 
5

 
16

 
 $541 - $656
Cross Creek Ranch 90', Fulshear
2013
 
43

 
29

 
14

 
6

 
5

 
 $617 - $692
Villas at Cross Creek Ranch, Fulshear
2013
 
101

 
100

 
1

 

 
9

 
 $454 - $496
Fulshear Run, Richmond
2016
 
25

 
1

 
24

 
9

 
1

 
 $554 - $650
Cinco Ranch, Katy
2015
 
93

 
93

 

 

 
1

 
 $396 - $530
Harvest Green 75', Richmond
2016
 
20

 
9

 
11

 
3

 
9

 
 $421 - $477
Sienna Plantation 80', Missouri City
2013
 
38

 
38

 

 

 
6

 
 $542 - $650
Sienna Plantation 85', Missouri City
2016
 
25

 
10

 
15

 
5

 
10

 
 $535 - $640
Villas at Sienna South, Missouri City
2016
 
19

 
9

 
10

 

 
9

 
 $445 - $507
Lakes of Bella Terra, Richmond
2013
 
109

 
101

 
8

 
1

 
21

 
 $465 - $553
Villas at Aliana, Richmond
2013
 
114

 
87

 
27

 
2

 
27

 
 $380 - $503
Riverstone 55', Sugar Land
2013
 
97

 
96

 
1

 

 
16

 
 $437 - $467
Riverstone 80', Sugar Land
2013
 
102

 
102

 

 

 
2

 
 $559 - $710
Riverstone Avanti at Avalon 100', Sugar Land
2015
 
5

 
4

 
1

 
1

 
3

 
$1,197
The Townhomes at Imperial, Sugar Land
2015
 
27

 
27

 

 

 
7

 
 $396 - $530
Galveston County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Harborwalk, Hitchcock
2014
 
50

 
50

 

 

 
6

 
 $680 - $686
Harris County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Fairfield, Cypress
2010
 
91

 
91

 

 

 
14

 
 $530 - $595
Lakes of Fairhaven, Cypress
2008
 
257

 
257

 

 

 
9

 
 $409 - $505
Towne Lake Living Views, Cypress
2013
 
122

 
118

 
4

 
3

 
14

 
 $468 - $561
The Groves, Humble
2015
 
50

 
29

 
21

 
8

 
15

 
 $436 - $498
Lakes of Creekside
2016
 
21

 
1

 
20

 
4

 
1

 
 $476 - $550
Bridgeland '80, Cypress
2015
 
100

 
84

 
16

 
9

 
14

 
 $502 - $591
Bridgeland Patio, Cypress
2016
 
15

 
1

 
14

 
2

 
1

 
 $343 - $379
Elyson 70', Cypress
2017
 
12

 

 
12

 
1

 

 
 $445 - $501
Hidden Arbor, Cypress
2016
 
129

 
24