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EX-32.2 - EXHIBIT 32.2 - TRI Pointe Group, Inc.tph10k2017ex322.htm
EX-32.1 - EXHIBIT 32.1 - TRI Pointe Group, Inc.tph10k2017ex321.htm
EX-31.2 - EXHIBIT 31.2 - TRI Pointe Group, Inc.tph10k2017ex312.htm
EX-31.1 - EXHIBIT 31.1 - TRI Pointe Group, Inc.tph10k2017ex311.htm
EX-23.1 - EXHIBIT 23.1 - TRI Pointe Group, Inc.tph10k2017ex231q417.htm
EX-21.1 - EXHIBIT 21.1 - TRI Pointe Group, Inc.tph10k2017ex211.htm
EX-12.1 - EXHIBIT 12.1 - TRI Pointe Group, Inc.tph10k2017ex121.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, 2017
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
tphlogoa01.jpg 
TRI Pointe Group, Inc.
(Exact Name of Registrant as Specified in Its Charter)
_______________________________________________________________________________
Delaware
 
61-1763235
(State or other Jurisdiction of Incorporation or Organization)
 
(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,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
Accelerated filer
Non-accelerated filer
 (Do not check if a smaller reporting company)
Smaller reporting company
 
 
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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, 2017, based on the closing price of $13.19 as reported by the New York Stock Exchange, was $1,950,059,287.
151,212,457 shares of common stock were issued and outstanding as of February 8, 2018.
DOCUMENTS INCORPORATED BY REFERENCE:
Portions from the registrant’s proxy statement relating to its 2018 annual meeting of stockholders are incorporated by reference into Part III, Items 10, 11, 12, 13 and 14.

- 1 -



TRI Pointe Group, Inc.
ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 2017
 
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.
Item 16.
 


- 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 factorsmay 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 update or revision shall be deemed to indicate that other statements not addressed by that update or revision remain correct or create an obligation to provide any other updates or revisions.
Forward-Looking Statements
Forward-looking statements that are included in this annual report on Form 10-K are generally accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “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, outcome of legal proceedings, 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 any 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, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such 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;
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
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 annual report on Form 10-K) 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 identifies 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 15 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, 2017, our operations consisted of 130 active selling communities and 27,312 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, luxury and active adult homes.  As a result, we build across a variety of base sales price points, ranging from approximately $223,000 to $2.2 million, and home sizes, ranging from approximately 1,020 to 5,600 square feet.  See “Description of Projects and Communities under Development” below.  For the years ended December 31, 2017 and 2016, we delivered 4,697 and 4,211 homes, respectively, and the average sales price of our new homes delivered was approximately $582,000 and $553,000, 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’ 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.
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 28 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, the management teams at each of our homebuilding subsidiaries have substantial industry knowledge and local market expertise. We believe that our management teams’ 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 continue 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 Arizona, California, Colorado, Texas, Nevada, the Washington, D.C. metro area, and 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 teams have 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 teams pursue 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.
Increase Market Position in Growth Markets
We believe that there are 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.  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.

- 5 -



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 luxury and active adult.  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 teams are vigilant in maintaining their 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.

- 6 -



Lots Owned or Controlled
As of December 31, 2017, we owned or controlled, pursuant to land option contracts or purchase contracts, an aggregate of 27,312 lots.  We refer to lots that are under land option contracts as "controlled." See "Acquisition Process" below.  Excluded from lots owned or controlled are investments described in Note 6, 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, 2017.
 
 
Lots
Owned
 
Lots
Controlled
 
Lots
Owned or
Controlled
Maracay Homes
1,950

 
569

 
2,519

Pardee Homes
14,925

 
219

 
15,144

Quadrant Homes
1,070

 
656

 
1,726

Trendmaker Homes
1,508

 
347

 
1,855

TRI Pointe Homes
2,890

 
1,074

 
3,964

Winchester Homes
1,597

 
507

 
2,104

Total
23,940

 
3,372

 
27,312


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, 2017 and includes information on current projects under development where we are building and selling homes as of December 31, 2017.

- 7 -



Maracay Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2017
 
Lots
Owned as of
December 31, 2017(3)
 
Backlog as of
December 31,2017(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2017
 
Sales Price
Range(in thousands)(6)
Phoenix, Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
City of Buckeye:
 
 
 
 
 
 
 
 
 
 
 
 
 
Verrado Palisades
2015
 
63

 
62

 
1

 

 
29

 
 $301 - $374
Verrado Victory
2015
 
98

 
49

 
49

 
16

 
19

 
 $368 - $400
City of Chandler:
 
 
 
 
 
 
 
 
 
 
 
 
 
Hawthorn Manor
2017
 
84

 
31

 
53

 
14

 
31

 
 $517 - $559
Mission Estates
2019
 
26

 

 
26

 

 

 
 $545 - $570
Windermere Ranch
2019
 
91

 

 
91

 

 

 
 $448 - $476
City of Gilbert:
 
 
 
 
 
 
 
 
 
 
 
 
 
Marquis at Morrison Ranch
2016
 
66

 
65

 
1

 

 
29

 
$414 - $501
Artisan at Morrison Ranch
2016
 
105

 
85

 
20

 
13

 
50

 
$340 - $393
The Preserve at Adora Trails
2017
 
82

 
34

 
48

 
21

 
34

 
$414 - $457
Marathon Ranch
2018
 
63

 

 
63

 

 

 
$486 - $535
Lakes At Annecy
2018
 
216

 

 
216

 

 

 
$276 - $311
Lakeview Trails
2019
 
92

 

 
92

 

 

 
$451 - $511
Copper Bend
2019
 
38

 

 
38

 

 

 
$451 - $484
City of Goodyear:
 
 
 
 
 
 
 
 
 
 
 
 
 
Rio Paseo Villages
2018
 
117

 

 
117

 

 

 
 $213 - $227
Rio Paseo Cottages
2018
 
93

 

 
93

 
2

 

 
 $253 - $271
City of Mesa:
 
 
 
 
 
 
 
 
 
 
 
 
 
Kinetic Point at Eastmark
2013
 
80

 
77

 
3

 

 
2

 
 $294 - $373
Lumiere Garden at Eastmark
2013
 
85

 
83

 
2

 
2

 
8

 
 $332 - $409
Curie Court at Eastmark
2016
 
106

 
58

 
48

 
27

 
28

 
 $294 - $373
Palladium Point
2016
 
53

 
34

 
19

 
16

 
30

 
 $321 - $390
The Vista at Granite Crossing
2018
 
37

 

 
37

 

 

 
 $424 - $499
Eastmark DU6 Parcel 14
2019
 
53

 

 
53

 

 

 
 $350 - $400
Town of Peoria:
 
 
 
 
 
 
 
 
 
 
 
 
 
Legacy at The Meadows
2017
 
74

 
26

 
48

 
26

 
26

 
 $419 - $445
Estates at The Meadows
2017
 
272

 
43

 
229

 
23

 
43

 
 $476 - $550
Enclave at The Meadows
2018
 
126

 

 
126

 
12

 

 
 $380 - $475
Riverwalk
2019
 
94

 

 
94

 

 

 
 $494 - $547
City of Phoenix:
 
 
 
 
 
 
 
 
 
 
 
 
 
Navarro Groves
2018
 
54

 

 
54

 

 

 
 $402 - $447
Avance
2019
 
204

 

 
204

 

 

 
 $336 - $598
Closed Communities
N/A
 

 

 

 

 
102

 
N/A
Phoenix, Arizona Total
 
 
2,472

 
647

 
1,825

 
172

 
431

 
 
Tucson, Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
Oro Valley:
 
 
 
 
 
 
 
 
 
 
 
 
 
Desert Crest - Center Pointe Vistoso
2016
 
103

 
49

 
54

 
14

 
36

 
$259 - $304
The Cove - Center Pointe Vistoso
2016
 
83

 
49

 
34

 
14

 
31

 
$345 - $405
Summit N & S - Center Pointe Vistoso
2016
 
88

 
65

 
23

 
7

 
42

 
$395 - $430
The Pinnacle - Center Pointe Vistoso
2016
 
69

 
60

 
9

 
6

 
38

 
$448 - $480
Tucson:
 
 
 
 
 
 
 
 
 
 
 
 
 
Ranches at Santa Catalina
2016
 
34

 
29

 
5

 
4

 
23

 
$414 - $460
Closed Communities
N/A
 

 

 

 

 
27

 
N/A
Tucson, Arizona Total
 
 
377

 
252

 
125

 
45

 
197

 
 
Maracay Total
 
 
2,849

 
899

 
1,950

 
217

 
628

 
 







- 8 -



Pardee Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2017
 
Lots
Owned as of
December 31, 2017(3)
 
Backlog as of
December 31,2017(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2017
 
Sales Price
Range(in thousands)(6)
California
 
 
 
 
 
 
 
 
 
 
 
 
 
San Diego County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Casavia
2017
 
83

 
63

 
20

 
20

 
63

 
$980 - $1,070
Artesana
2017
 
56

 
30

 
26

 
20

 
30

 
$1,685 - $1,910
Almeria
2017
 
80

 
15

 
65

 
14

 
15

 
$1,440 - $1,550
Olvera
2017
 
84

 
15

 
69

 
25

 
15

 
$1,315 - $1,450
Pacific Highlands Ranch Future
TBD
 
536

 

 
536

 

 

 
TBD
Sandstone (Weston)
2018
 
81

 

 
81

 
6

 

 
$640 - $670
Lake Ridge (Weston)
2018
 
129

 

 
129

 
12

 

 
$710 - $805
Meadowood
TBD
 
844

 

 
844

 

 

 
$290 - $590
Luna
2017
 
96

 
67

 
29

 
27

 
67

 
$370 - $475
Azul
2017
 
121

 
64

 
57

 
41

 
64

 
$360 - $475
Veraz
2018
 
111

 

 
111

 

 

 
$330 - $430
Moderna
2018
 
112

 

 
112

 

 

 
$325 - $375
Ocean View Hills Future
2018
 
468

 

 
468

 

 

 
TBD
South Otay Mesa
TBD
 
893

 

 
893

 

 

 
TBD
Los Angeles County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Aliento - Verano
2017
 
95

 
5

 
90

 
12

 
5

 
$540 - $660
Aliento - Arista
2017
 
112

 
29

 
83

 
12

 
29

 
$700 - $780
Aliento - 55x100
2018
 
94

 

 
94

 

 

 
TBD
Aliento - Cresta
2018
 
67

 

 
67

 

 

 
$775 - $840
Skyline Ranch
2019
 
1,220

 

 
1,220

 

 

 
 $550 - $810
Riverside County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Senterra
2016
 
82

 
79

 
3

 
2

 
54

 
$415 - $485
Vantage
2016
 
83

 
52

 
31

 
10

 
37

 
$380 - $400
Viewpoint
2016
 
75

 
73

 
2

 
2

 
55

 
$305 - $335
Overlook
2016
 
112

 
90

 
22

 
18

 
66

 
$320 - $355
Aura
2017
 
79

 
48

 
31

 
5

 
48

 
$360 - $380
Starling
2017
 
107

 
15

 
92

 
9

 
15

 
$410 - $430
Canyon Hills Future 70 x 115
2018
 
125

 

 
125

 

 

 
TBD
Tournament Hills Future
TBD
 
268

 

 
268

 

 

 
TBD
Skycrest
2015
 
125

 
107

 
18

 
5

 
39

 
$378 - $400
Flagstone
2016
 
79

 
64

 
15

 
6

 
30

 
$430 - $450
Elara
2016
 
215

 
119

 
96

 
12

 
99

 
$300 - $320
Daybreak
2017
 
139

 
25

 
114

 
11

 
25

 
$340 - $360
Cascade
2017
 
105

 
27

 
78

 
2

 
27

 
$300 - $320
Abrio
2018
 
82

 

 
82

 

 

 
$385 - $415
Beacon
2018
 
108

 

 
108

 

 

 
$440 - $455
Sundance Future Active Adult
2018
 
704

 

 
704

 

 

 
TBD
Sundance Future
TBD
 
108

 

 
108

 

 

 
TBD
Avena
2018
 
84

 

 
84

 
1

 

 
$440 - $470
Tamarack
2018
 
84

 

 
84

 
17

 

 
$460 - $500
Spencer's Crossing PA24
2018
 
82

 

 
82

 

 

 
TBD
Canvas
2018
 
89

 

 
89

 

 

 
$390 - $405
Kadence
2018
 
85

 

 
85

 

 

 
$405 - $425
Newland
2018
 
93

 

 
93

 

 

 
$430 - $450
Easton
2018
 
92

 

 
92

 

 

 
$445 - $470
Banning
2020
 
4,318

 

 
4,318

 

 

 
TBD
San Joaquin County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Bear Creek
TBD
 
1,252

 

 
1,252

 

 

 
TBD
Closed Communities
N/A
 

 

 

 

 
169

 
N/A
California Total
 
 
14,057

 
987

 
13,070

 
289

 
952

 
 

- 9 -



Nevada
 
 
 
 
 
 
 
 
 
 
 
 
 
Clark County:
 
 
 
 
 
 
 
 
 
 
 
 
 
North Peak
2015
 
171

 
122

 
49

 
17

 
65

 
$303 - $357
Castle Rock
2015
 
188

 
116

 
72

 
15

 
55

 
$345 - $440
Camino
2016
 
86

 
84

 
2

 

 
61

 
$255 - $270
Bella Verdi
2015
 
57

 
51

 
6

 
1

 
4

 
 $400 - $440
Escala
2016
 
103

 
53

 
50

 
3

 
34

 
 $520 - $590
Montero
2016
 
77

 
57

 
20

 
9

 
49

 
 $425 - $505
Strada
2017
 
119

 
24

 
95

 
2

 
24

 
 $405 - $440
Linea
2018
 
87

 

 
87

 

 

 
$335 - $370
Meridian
2016
 
62

 
42

 
20

 
10

 
22

 
 $590 - $685
Pebble Estate Future
TBD
 
8

 

 
8

 

 

 
 TBD
Encanto
2016
 
51

 
34

 
17

 
6

 
23

 
 $470 - $530
Luma
2018
 
63

 

 
63

 
2

 

 
 $470 - $526
Encanto Townhomes
2018
 
70

 

 
70

 

 

 
 TBD
Horizon Terrace
2014
 
165

 
135

 
30

 
13

 
41

 
 $415 - $470
Horizon Valle Verde
2018
 
53

 

 
53

 

 

 
 $450 - $470
Keystone
2017
 
70

 
24

 
46

 
7

 
23

 
 $450 - $540
Cobalt
2017
 
98

 
3

 
95

 
4

 
3

 
 $360 - $430
Onyx
2018
 
97

 

 
97

 

 

 
 $435 - $455
Axis
2017
 
78

 
10

 
68

 
9

 
10

 
 $835 - $1,070
The Canyons at MacDonald Ranch - R
2018
 
22

 

 
22

 

 

 
 $515 - $585
Pivot
2017
 
88

 
12

 
76

 
4

 
12

 
 $400 - $450
Strada at Pivot
2017
 
27

 
7

 
20

 
4

 
7

 
 $445 - $480
Nova Ridge
2018
 
108

 
1

 
107

 
14

 
1

 
 $635 - $800
Tera Luna
2018
 
116

 

 
116

 

 

 
 $545 - $595
Indogo
2018
 
202

 

 
202

 

 

 
 $267 - $276
Larimar
2018
 
170

 

 
170

 

 

 
 $320 - $360
Blackstone
2018
 
140

 

 
140

 

 

 
 $369 - $430
Cactus/Jones
TBD
 
54

 

 
54

 

 

 
 $349 - $375
Closed Communities
N/A
 

 

 

 

 
45

 
N/A
Nevada Total
 
 
2,630

 
775

 
1,855

 
120

 
479

 
 
Pardee Total
 
 
16,687

 
1,762

 
14,925

 
409

 
1,431

 
 

 

- 10 -



Quadrant Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2017
 
Lots
Owned as of
December 31, 2017(3)
 
Backlog as of
December 31,2017(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2017
 
Sales Price
Range(in thousands)(6)
Washington
 
 
 
 
 
 
 
 
 
 
 
 
 
Snohomish County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Evergreen Heights, Monroe
2016
 
71

 
63

 
8

 
7

 
60

 
$503 - $558
The Grove at Canyon Park, Bothell
2017
 
60

 
38

 
22

 
19

 
38

 
$685 - $780
Greenstone Heights, Bothell
2017
 
41

 
2

 
39

 
16

 
2

 
$920 - $1,104
Grove North, Bothell
2019
 
43

 

 
43

 

 

 
$765 - $870
King County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Vareze, Kirkland
2019
 
82

 

 
82

 

 

 
$675 - $885
Parkwood Terrace, Woodinville
2017
 
15

 
6

 
9

 
8

 
6

 
$829 - $945
Hazelwood Ridge, Newcastle
2017
 
30

 
22

 
8

 
6

 
22

 
$895 - $1,025
Inglewood Landing, Sammamish
2018
 
21

 

 
21

 

 

 
$1,100 - $1,260
Jacobs Landing, Sammamish
2017
 
20

 
1

 
19

 
3

 
1

 
$1,160 - $1,282
Kirkwood Terrace, Sammamish
2018
 
12

 

 
12

 

 

 
$1,680 - $1,930
English Landing P2, Redmond
2017
 
25

 
7

 
18

 
7

 
7

 
$1,093 - $1,349
English Landing P1, Redmond
2018
 
50

 

 
50

 

 

 
$1,150 - $1,386
Cedar Landing, North Bend
2019
 
138

 

 
138

 

 

 
$660 - $810
Monarch Ridge, Sammamish
2018
 
59

 

 
59

 

 

 
$960 - $1,135
Overlook at Summit Park, Maple Valley
2018
 
126

 

 
126

 

 

 
$600 - $765
Ray Meadows, Redmond
2018
 
27

 

 
27

 

 

 
$1,095 - $1,375
Wynstone, Federal Way
TBD
 
4

 

 
4

 

 

 
TBD
Breva, Bellevue
2017
 
29

 
19

 
10

 
10

 
19

 
$793 - $888
Canton Crossing, Maple Valley
2017
 
51

 
16

 
35

 
11

 
16

 
$572 - $650
Aurea, Sammamish
2019
 
41

 

 
41

 

 

 
$670 - $860
Aldea (Avalon Townhomes), Newcastle
2018
 
129

 

 
129

 

 

 
$640 - $905
Pierce County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Harbor Hill S-5/6, Gig Harbor
2017
 
72

 
23

 
49

 
10

 
23

 
$432 - $523
Harbor Hill S-2, Gig Harbor
2017
 
41

 
7

 
34

 
5

 
7

 
$416 - $463
Kitsap County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Mountain Aire, Poulsbo
2016
 
145

 
77

 
68

 
42

 
48

 
$412 - $469
Winslow Grove, Bainbridge Island
2018
 
19

 

 
19

 

 

 
$1,067 - $1,212
Closed Communities
N/A
 

 

 

 

 
103

 
N/A
Washington Total
 
 
1,351

 
281

 
1,070

 
144

 
352

 
 
Quadrant Homes Total
 
 
1,351

 
281

 
1,070

 
144

 
352

 
 
 




- 11 -



Trendmaker Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2017
 
Lots
Owned as of
December 31, 2017(3)
 
Backlog as of
December 31,2017(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2017
 
Sales Price
Range(in thousands)(6)
Texas
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazoria County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Sedona Lakes, Pearland
2014
 
34

 
29

 
5

 
5

 
8

 
$380
Pomona, Manvel
2015
 
49

 
21

 
28

 
5

 
16

 
$369 - $464
Rise Meridiana
2016
 
36

 
17

 
19

 
3

 
16

 
$292 - $350
Fort Bend County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross Creek Ranch 60', Fulshear
2013
 
35

 
15

 
20

 
4

 
11

 
$370 - $470
Cross Creek Ranch 65', Fulshear
2013
 
61

 
51

 
10

 
3

 
18

 
$437 - $498
Cross Creek Ranch 70', Fulshear
2013
 
107

 
72

 
35

 
5

 
12

 
$485 - $548
Cross Creek Ranch 80', Fulshear
2013
 
51

 
40

 
11

 
2

 
12

 
$571 - $676
Cross Creek Ranch 90', Fulshear
2013
 
31

 
26

 
5

 
2

 
14

 
$654 - $718
Fulshear Run, Richmond
2016
 
54

 
18

 
36

 
5

 
17

 
$562 - $668
Harvest Green 75', Richmond
2015
 
27

 
20

 
7

 
6

 
11

 
$446 - $520
Sienna Plantation 85', Missouri City
2015
 
39

 
21

 
18

 
2

 
11

 
$546 - $645
Villas at Aliana, Richmond
2013
 
117

 
106

 
11

 
2

 
19

 
$399 - $451
Harris County:
 
 
 
 
 
 
 
 
 
 
 
 
 
The Groves, Humble
2015
 
82

 
45

 
37

 
2

 
16

 
$323 - $524
Lakes of Creekside
2015
 
21

 
9

 
12

 
2

 
8

 
$512 - $585
Bridgeland 80', Cypress
2015
 
123

 
101

 
22

 
8

 
17

 
$524 - $611
Bridgeland Patio, Cypress
2017
 
32

 
15

 
17

 
6

 
14

 
$344 - $413
Bridgeland 70'
TBD
 
9

 

 
9

 

 

 
$479 - $538
Villas at Bridgeland 50'
TBD
 
1

 

 
1

 

 

 
TBD
Elyson 70', Cypress
2017
 
20

 
8

 
12

 
1

 
8

 
$454 - $496
Hidden Arbor, Cypress
2015
 
129

 
88

 
41

 
10

 
64

 
$375 - $584
Clear Lake, Houston
2015
 
770

 
288

 
482

 
48

 
74

 
$330 - $660
Montgomery County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Woodtrace, Woodtrace
2014
 
39

 
30

 
9

 
3

 
12

 
$441 - $480
Northgrove, Tomball
2015
 
25

 
5

 
20

 

 
4

 
$454 - $498
Bender's Landing Estates, Spring
2014
 
104

 
60

 
44

 
8

 
21

 
$473 - $568
The Woodlands, Creekside Park
2015
 
104

 
39

 
65

 
8

 
25

 
$413 - $624
Waller County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cane Island, Katy
2015
 
23

 
20

 
3

 

 
6

 
$525 - $634
Mustang Estates
TBD
 
350

 

 
350

 

 

 
TBD
Williamson County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Crystal Falls
2016
 
29

 
16

 
13

 
5

 
13

 
$460 - $535
Rancho Sienna 60'
2017
 
28

 
4

 
24

 
1

 
4

 
$350 - $422
Rancho Sienna 80'
2018
 
4

 

 
4

 
2

 

 
TBD
Highlands at Mayfield Ranch 50'
TBD
 
11

 

 
11

 

 

 
TBD
Highlands at Mayfield Ranch 60'
TBD
 
1

 

 
1

 

 

 
TBD
Hays County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Belterra 60', Austin
2017
 
33

 
9

 
24

 
5

 
9

 
$375 - $466
Belterra 80', Austin
2016
 
37

 
18

 
19

 
4

 
12

 
$535 - $603
Headwaters, Dripping Springs
2017
 
30

 
7

 
23

 
3

 
7

 
$420 - $479
Travis County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Lakes Edge 70'
TBD
 
45

 

 
45

 
7

 

 
$623 - $806
Lakes Edge 80'
TBD
 
14

 

 
14

 
5

 

 
$620 - $806
Other:
 
 
 
 
 
 
 
 
 
 
 
 
 
Avanti Custom Homes
2007
 
125

 
124

 
1

 
1

 
3

 
$480 - $856
Closed Communities
N/A
 

 

 

 

 
24

 
N/A
Texas Total
 
 
2,830

 
1,322

 
1,508

 
173

 
506

 
 
Trendmaker Homes Total
 
 
2,830

 
1,322

 
1,508

 
173

 
506

 
 


- 12 -



TRI Pointe Homes
 
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2017
 
Lots
Owned as of
December 31, 2017(3)
 
Backlog as of
December 31,2017(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2017
 
Sales Price
Range(in thousands)(6)
Southern California