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EX-32.2 - EXHIBIT 32.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 - Green Brick Partners, Inc.exhibit322certificationofc.htm
EX-32.1 - EXHIBIT 32.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 - Green Brick Partners, Inc.exhibit321certificationofc.htm
EX-31.2 - EXHIBIT 31.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 - Green Brick Partners, Inc.exhibit312certificationofc.htm
EX-31.1 - EXHIBIT 31.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 - Green Brick Partners, Inc.exhibit311certificationofc.htm
EX-23.2 - EXHIBIT 23.2 CONSENT OF GRANT THORNTON LLP 2017 - Green Brick Partners, Inc.exhibit232consentofgrantth.htm
EX-23.1 - EXHIBIT 23.1 CONSENT OF RSM US LLP 2017 - Green Brick Partners, Inc.exhibit231consentofrsmusll.htm
EX-21.1 - EXHIBIT 21.1 LIST OF SUBSIDIARIES 2017 - Green Brick Partners, Inc.exhibit211listofsubsidiari.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 10-K
___________________
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 
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 001-33530
Green Brick Partners, Inc.
 
(Exact name of registrant as specified in its charter)
Delaware
 
20-5952523
(State or other jurisdiction of incorporation)
 
(IRS Employer Identification Number)
2805 Dallas Pkwy, Ste 400
Plano, Texas 75093
 
(469) 573-6755
(Address of principal executive offices, including Zip Code)
 
(Registrant’s telephone number, including area code)
 
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
 
The Nasdaq Stock Market LLC
Preferred Stock Purchase Rights
 
The Nasdaq Stock Market LLC
 
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 ¨ No ý
 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange 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 (§229.405 of this chapter) 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 definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer ¨ Accelerated filer ý Non-accelerated filer ¨ Smaller reporting company ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No ý
 The aggregate market value of voting stock held by non-affiliates of the Registrant was $261,560,754 as of June 30, 2017 (based upon the closing sale price on The Nasdaq Capital Market for such date). For this purpose, all shares held by directors, executive officers and stockholders beneficially owning ten percent or more of the registrant’s common stock have been treated as held by affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
The number of shares of the Registrant’s common stock outstanding as of March 7, 2018 was 50,598,901.
DOCUMENTS INCORPORATED BY REFERENCE
None.




TABLE OF CONTENTS
 
 
 
Item 1.
 
Item 1A.
 
Item 1B.
 
Item 2.
 
Item 3.
 
Item 4.
 
 
 
Item 5.
 
Item 6.
 
Item 7.
 
Item 7A.
 
Item 8.
 
Item 9.
 
Item 9A.
 
Item 9B.
 
 
 
Item 10.
 
Item 11.
 
Item 12.
 
Item 13.
 
Item 14.
 
 
 
Item 15.
 
 





FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K includes statements and information that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, which we refer to as the “Securities Act,” and Section 21E of the Securities Exchange Act of 1934, as amended, which we refer to as the “Exchange Act.” Statements that are “forward-looking statements,” include any projections of earnings, revenue or other financial items, any statements of the plans, strategies or objectives of management for future operations, any statements concerning proposed new projects or other developments, any statements regarding future economic conditions or performance, any statements of management’s beliefs, goals, strategies, intentions and objectives, any statements concerning potential acquisitions, and any statements of assumptions underlying any of the foregoing. Words such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “outlook,” “strategy,” “positioned,” “intends,” “plans,” “believes,” “projects,” “estimates” and similar expressions, as well as statements in the future tense, identify forward-looking statements.

These statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any future results, performance or achievements described in or implied by such statements. Actual results may differ materially from expected results described in our forward-looking statements, including with respect to correct measurement and identification of factors affecting our business or the extent of their likely impact, the accuracy and completeness of the publicly available information with respect to the factors upon which our business strategy is based or the success of our business. In addition, even if results are consistent with the forward-looking statements contained in this Annual Report on Form 10-K, those results may not be indicative of results or developments in subsequent periods. Furthermore, industry forecasts are likely to be inaccurate, especially over long periods of time and in industries particularly sensitive to market conditions such as homebuilding and builder finance.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of whether, or the times by which, our performance or results may be achieved. Forward-looking statements are based on information available at the time those statements are made and management’s belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:

cyclicality in the homebuilding industry and adverse changes in general economic conditions;
fluctuations and cycles in value of, and demand for, real estate investments;
significant inflation or deflation;
the unavailability of subcontractors;
labor and raw material shortages and price fluctuations;
the failure to recruit, retain and develop highly skilled and competent employees;
an inability to acquire undeveloped land, partially-finished developed lots and finished lots suitable for residential homebuilding at reasonable prices;
an inability to develop communities successfully or within expected timeframes;
an inability to sell properties in response to changing economic, financial and investment conditions;
risks related to participating in the homebuilding business through controlled homebuilding subsidiaries;
risks relating to buy-sell provisions in the operating agreements governing two builder subsidiaries;
risks related to geographic concentration;
risks related to government regulation;
the interpretation of or changes to tax, labor and environmental laws;
the timing of receipt of regulatory approvals and of the opening of projects;
fluctuations in the market value of land, building lots and housing inventories;
volatility of mortgage interest rates;
the unavailability of mortgage financing;



the number of foreclosures in our markets;
interest rate increases or adverse changes in federal lending programs;
increases in unemployment or underemployment;
any limitation on, or reduction or elimination of, tax benefits associated with owning a home;
the occurrence of severe weather or natural disasters;
high cancellation rates;
competition in the homebuilding, land development and financial services industries;
risks related to future growth through strategic investments, joint ventures, partnerships and/or acquisitions;
risks related to holding noncontrolling interests in strategic investments, joint ventures, partnerships and/or acquisitions;
the inability to obtain suitable bonding for the development of housing projects;
difficulty in obtaining sufficient capital;
risks related to environmental laws and regulations;
the occurrence of a major health and safety incident;
poor relations with the residents of our communities;
information technology failures and data security breaches;
product liability claims, litigation and warranty claims;
the seasonality of the homebuilding industry;
utility and resource shortages or rate fluctuations;
the failure of employees or other representatives to comply with applicable regulations and guidelines;
future litigation, arbitration or other claims;
uninsured losses or losses in excess of insurance limits;
cost and availability of insurance and surety bonds;
volatility and uncertainty in the credit markets and broader financial markets;
availability, terms and deployment of capital including with respect to acquisitions, joint ventures and other strategic actions;
our debt and related service obligations;
required accounting changes;
an inability to maintain effective internal control over financial reporting; and
other risks and uncertainties inherent in our business, including those described in Item 1A. “Risk Factors.”

Should one or more of the risks or uncertainties described above or elsewhere in this Annual Report on Form 10-K occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. Except as required by law, we disclaim all responsibility to publicly update any information contained in a forward-looking statement.

All forward-looking statements attributable to us or to persons acting on our behalf, including any such forward-looking statements made subsequent to the publication of this Annual Report on Form 10-K, are expressly qualified in their entirety by this cautionary statement.



PART I
ITEM 1. BUSINESS

References
Unless the context otherwise requires, references to the “Company”, “Green Brick”, “we”, “us” or “our” refer to the consolidated company, which has been renamed Green Brick Partners, Inc. and its subsidiaries, resulting from the acquisition by BioFuel Energy Corp. and its then consolidated subsidiaries (“BioFuel”) of JBGL Builder Finance LLC and its consolidated subsidiaries and affiliated companies (collectively “Builder Finance”), and JBGL Capital Companies (“Capital”), a combined group of commonly managed limited liability companies and partnerships (collectively with Builder Finance, “JBGL”) by means of a reverse recapitalization transaction on October 27, 2014.

General
Green Brick Partners, Inc. (formerly named BioFuel Energy Corp.) was incorporated as a Delaware corporation on April 11, 2006, to invest solely in BioFuel Energy, LLC, a limited liability company organized on January 25, 2006, to build and operate ethanol production facilities in the midwestern United States. On November 22, 2013, the Company disposed of its ethanol plants and all related assets. Following the disposition of these production facilities, we were a public shell company with no substantial operations.

On June 10, 2014, the Company entered into a definitive transaction agreement with the owners of JBGL, which provided that we would acquire JBGL for $275.0 million, payable in cash and shares of our common stock (the “Transaction”). JBGL is a real estate operator involved in the purchase and development of land for residential use, construction lending and home building operations. The Transaction was completed on October 27, 2014. Pursuant to the terms of the Transaction, we paid the $275.0 million purchase price with approximately $191.8 million in cash and the remainder in 11,108,500 shares of our common stock valued at approximately $7.49 per share.

The cash portion of the purchase price was primarily funded from the proceeds of a $70.0 million rights offering conducted by the Company (the $70.0 million includes proceeds from purchases of shares of common stock by certain funds and accounts managed by Greenlight Capital, Inc. and its affiliates (“Greenlight”) and Third Point LLC and its affiliates (“Third Point”)) and $150.0 million of debt financing provided by Greenlight pursuant to a loan agreement, with the lenders from time to time party thereto, which provided for a five year term loan facility (the “Term Loan Facility”). In 2015, the Term Loan Facility was repaid in full.

For financial reporting purposes, the Transaction was deemed to be a capital transaction in substance and recorded as a reverse recapitalization of JBGL whereby JBGL is deemed to be the continuing, surviving entity for accounting purposes, but through reorganization, is deemed to have adopted the capital structure of BioFuel. Because the acquisition was considered a reverse recapitalization for accounting purposes, the combined historical financial statements of JBGL became our historical financial statements and from the completion of the acquisition on October 27, 2014, the financial statements have been prepared on a consolidated basis. The assets and liabilities of BioFuel were brought forward at their book value and no goodwill was recognized in connection with the Transaction. As a result of the Transaction, Green Brick changed its business direction and is now a diversified homebuilding and land development company.

On July 1, 2015, we completed an underwritten public offering of 17 million shares of our common stock at a price of $10.00 per share and granted to the underwriters a 30-day option to purchase up to an aggregate of 841,500 additional shares of common stock to cover over-allotments (the “Equity Offering”). On July 23, 2015, the underwriters exercised the option and purchased 444,897 additional shares. All of the shares were sold by us pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”).

The Equity Offering resulted in net proceeds of approximately $170.0 million, after deducting underwriting discounts and offering expenses. On July 1, 2015, we used approximately $154.9 million of the net proceeds from the Equity Offering to repay all of the outstanding principal, interest and a prepayment premium under the Term Loan Facility. Upon repayment, the Term Loan Facility was terminated and all security interests in, and all liens held by Greenlight with respect to, the assets of Green Brick securing the amounts owed under the Term Loan Facility were terminated and released. We used the remaining net proceeds for working capital and general corporate purposes.

Equity Issuance in Connection with the Acquisition of an Unconsolidated Entity
On August 15, 2017, the Company, JBGL Ownership LLC, a Delaware limited liability company and a wholly owned subsidiary of the Company (“JBGL”), and GB Challenger, LLC, a newly formed Texas limited liability company (the

1


“Challenger Subsidiary”) entered into a Membership Interest Purchase and Contribution Agreement (the “Challenger Agreement”) with The Challenger Group, Inc., a Wyoming corporation (“TCGI”), TCG Holdings, LLC, a Wyoming limited liability company (“TCG”), GTG Holdings, LLC, a Wyoming limited liability company (“GTG” and together with TCGI and TCG, the “Challenger Entities”) and Brian R. Bahr (“Bahr”), resulting in the Company, through its interest in JBGL, and the Challenger Entities owning a 49.9% and 50.1% ownership interest, respectively, in the Challenger Subsidiary, and the Challenger Subsidiary owning all of the membership and ownership interests in the subsidiaries of the Challenger Entities named in the Challenger Agreement (“Challenger Homebuilder Subsidiaries”). As consideration for such interests, the Company agreed to issue to the Challenger Entities, or their designees, 1,497,000 shares of its common stock, par value $0.01 per share, in a private placement, with 20,000 shares of its common stock held back pending satisfactory resolution of indemnification claims (“Holdback Shares”). The Company expects to issue the Holdback Shares during the second quarter of 2018; therefore, $0.2 million has been recorded in additional paid-in capital on the consolidated balance sheet as of December 31, 2017. The Challenger Entities, at their discretion, may offer to sell and transfer an additional 20.1% or, in certain circumstances, all of the Challenger Entities’ interest in the Challenger Subsidiary (“Additional Membership Interests”) to the Company on or after the third anniversary of the Challenger Agreement. The Company is not required to purchase the Additional Membership Interests. The Company incurred approximately $0.3 million in related acquisition costs which are included in the cost basis of investment in unconsolidated entity.

The Challenger Entities operate homebuilding operations under the name Challenger Homes. Challenger Homes constructs townhouses, single family homes and luxury patio homes, and is headquartered in Colorado Springs, Colorado. The Company partnered with Challenger Homes in order to expand its business with partners who are complementary to its current builder partner group and to gain a presence in the Colorado Springs market.

The Challenger Entities, together with the Company will direct the operations of the Challenger Homebuilder Subsidiaries through the Challenger Subsidiary, with the Company holding a noncontrolling interest. We hold two of the five board of managers (the “Managers”) seats of the Challenger Subsidiary. The Challenger Subsidiary’s six officers, employees of the Challenger Entities, were designated by the Managers for the purpose of managing the day to day operations. We do not have a controlling financial interest in the Challenger Subsidiary as we have less than 50% of the voting interests in the Challenger Subsidiary. Our investment in the Challenger Subsidiary is treated as an unconsolidated investment under the equity method of accounting, carried at cost, as adjusted for our share of income or losses and reduced for distributions received, and included in investment in unconsolidated entity in our consolidated balance sheets.

Our Company
We are a diversified homebuilding and land development company. We acquire and develop land, provide land and construction financing to our controlled builders and participate in the profits of our controlled builders. Our core markets are in the high growth U.S. metropolitan areas of Dallas, Texas and Atlanta, Georgia. We also own a noncontrolling interest in Challenger Homes in Colorado Springs, Colorado. We are engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at our residential neighborhoods and master planned communities. We believe we offer higher quality homes with more distinctive designs and floor plans than those built by our competitors at comparable prices. Our communities are located in premium locations in our core markets and we seek to enhance homebuyer satisfaction by utilizing high-quality materials, offering a broad range of customization options and building well-crafted energy-efficient homes. We seek to maximize value over the long term and operate our business to mitigate risks in the event of a downturn by controlling costs and quickly reacting to regional and local market trends.

We are a leading lot developer in the Dallas and Atlanta markets and believe that our strict operating discipline provides us with a competitive advantage in seeking to maximize returns while minimizing risk. We currently own or control over 6,200 home sites in premium locations in the Dallas and Atlanta markets. We consider premium locations to be lot supply constrained with high housing demand where much of the surrounding land has already been developed. We are strategically positioned to either build new homes on our lots through our controlled builders or to sell finished lots to large unaffiliated homebuilders.

We sell finished lots or option lots from third-party developers to our controlled builders for their homebuilding operations and provide them with construction financing and strategic planning. Our controlled builders provide us with their local knowledge and relationships. We support our controlled builders by financing their purchases of land from us at an unlevered internal rate of return (“IRR”) of at least 20% and by providing construction financing at approximately a 13.8% or a 16.5% interest rate. Our income is further enhanced by our 50% equity interest in the profits of our controlled builders. In addition, the land we sell to third-party homebuilders also typically generates an unlevered IRR targeted at 20% or greater.


2


References to our “controlled builders” refer to our homebuilding subsidiaries in which we own a 50% equity interest and a 51% voting interest. In addition, we have the ability to appoint 2 of the 3 members of the board of managers of each controlled builder; therefore we are able to exercise control over the operations of each controlled builder.
Controlled Builders
 
Year
Formed
 
Market
 
Products Offered
 
Prices Ranges
The Providence Group of Georgia L.L.C. (“TPG”)
 
2011
 
Atlanta
 
Townhomes
 
$310,000 to $650,000
Single family
$440,000 to $1.1 million
CB JENI Homes DFW LLC (“CB JENI”)
 
2012
 
Dallas
 
Townhomes
 
$250,000 to $430,000
Single family
$320,000 to $700,000
Centre Living Homes, LLC (“Centre Living”)
 
2012
 
Dallas
 
Townhomes
 
$320,000 to $1.5 million
Southgate Homes DFW LLC (“Southgate”)
 
2013
 
Dallas
 
Luxury homes
 
$550,000 to $1.3 million

During the first quarter of 2015, we formed Green Brick Title, LLC (“Green Brick Title”), our wholly-owned title company. Green Brick Title’s core business includes providing title insurance and closing and settlement services for our homebuyers. Green Brick Title had insignificant operations during the years ended December 31, 2017, 2016 and 2015.

The following chart sets forth the number of new homes delivered by our controlled builders, the home sales revenue, the average sales price of homes delivered and the amount of lot sales revenue generated during the years ended December 31, 2017, 2016 and 2015.
 
 
Years Ended December 31,
 
Increase (Decrease)
 
Years Ended December 31,
 
Increase (Decrease)
 
 
2017
 
2016
 
Amount
 
%
 
2016
 
2015
 
Amount
 
%
New homes delivered
 
990

 
844

 
146

 
17.3
%
 
844

 
655

 
189

 
28.9
 %
Home sales revenue ($ in thousands)
 
$
435,644

 
$
365,164

 
$
70,480

 
19.3
%
 
$
365,164

 
$
254,267

 
$
110,897

 
43.6
 %
Average sales price of home delivered
 
$
440,044

 
$
432,659

 
$
7,385

 
1.7
%
 
$
432,659

 
$
388,194

 
$
44,465

 
11.5
 %
Lot sales revenue ($ in thousands)
 
$
18,730

 
$
15,164

 
$
3,566

 
23.5
%
 
$
15,164

 
$
36,878

 
$
(21,714
)
 
(58.9
)%

Our backlog reflects the number and value of homes for which we have entered into sales contracts with customers but not yet delivered. With the exception of a normal cancellation rate, we expect all of the backlog as of December 31, 2017 to be filled during 2018. The following chart sets forth the backlog related to our builder operations segment during the years ended December 31, 2017, 2016 and 2015.
 
 
Years Ended December 31,
 
Increase (Decrease)
 
Years Ended December 31,
 
Increase (Decrease)
 
 
2017
 
2016
 
Amount
 
%
 
2016
 
2015
 
Amount
 
%
Backlog ($ in thousands)
 
$
151,463

 
$
108,030

 
$
43,433

 
40.2%
 
$
108,030

 
$
88,136

 
$
19,894

 
22.6%

Our Competitive Strengths
Our business is characterized by the following competitive strengths:

Optionality Provided by Our Combined Land Development and Homebuilding Structure
We are a diversified homebuilding and land development company. We are strategically positioned to either build and sell new homes on lots through our controlled builders or develop land and sell finished lots to large unaffiliated homebuilders. While our business plan has increasingly focused on building new homes on our owned and controlled lots, we proactively monitor market conditions to opportunistically sell a minority of our finished lots to large unaffiliated homebuilders if we believe that doing so will maximize our returns or lower our risk.


3


Experienced Management Team
Our management team is comprised of homebuilding and finance veterans that collectively have decades of experience and local knowledge of our core markets. Our founder and Chief Executive Officer, James R. Brickman has over 40 years of experience in real estate development and home building. Richard A. Costello, our Chief Financial Officer, joined the Company in 2015 and provides oversight of all financial reporting, lending relationships, audit supervision, cash management, and investor relations. Mr. Costello has over 25 years of financial and operational experience in all aspects of real estate management. Jed Dolson, President of Texas Region (formerly Head of Land Acquisition and Development), joined JBGL as an employee in 2013 and is responsible for land entitlement and development activities, including overseeing our land development operations in Dallas. Summer Loveland, our Chief Accounting Officer, joined the Company in 2017 and is responsible for the oversight of financial reporting, internal audit, treasury functions, and information technology. Our management team has a proven record of running profitable businesses and making prudent investment decisions. We believe that our experienced management team is well positioned to design and execute the development of complex, master planned residential communities.

Focus on Operations in Housing Markets with a Favorable Growth Outlook and Strong Demand Fundamentals
We currently operate in the Dallas and Atlanta markets, which we believe are among the most desirable homebuilding markets in the nation. We also operate in Colorado Springs through our noncontrolling interest in Challenger Homes. We believe our core markets exhibit attractive residential real estate investment characteristics, such as growing economies, improving levels of employment and population growth relative to national averages, favorable migration patterns, general housing affordability, and desirable lifestyle and weather characteristics.

Among the 12 largest metropolitan areas in the country, the Dallas metropolitan area ranked first in both the rate of job growth and the number of jobs from November 2016 to November 2017 (Source: US Bureau of Labor Statistics, November 2017). The Atlanta metropolitan area ranked second in the rate of job growth and third in the number of jobs added from September 2016 to September 2017 (Source: US Bureau of Labor Statistics, September 2017).

We believe that increasing demand and supply constraints in our core markets create favorable conditions for our future growth.

Attractive Land Positions in Our Core Markets
We believe that we have strategically well-located land and lot positions within our core markets. We believe we have acquired our land and lot positions at attractive prices, providing us with significant opportunity for a healthy return on our investment. We expect the demand for housing in our core markets to continue to improve, due to rising consumer confidence, high affordability metrics, and a reduction in home inventory levels.

We seek to acquire land with convenient access to Dallas and Atlanta metropolitan areas which have diverse economic and employment bases and demographics that we believe will support long-term growth. For example, Capital currently owns, controls or is developing approximately 3,500 home sites under the brand Green Brick Communities in the Dallas market. Builder Finance owns or controls approximately 2,700 home sites in the Dallas and Atlanta markets.

We believe that our attractive inventory of home sites will enable us to capture the benefits of expected increases in home sales volume and home prices as the demand for new homes increases.

Land Sourcing and Evaluation Capabilities
We believe that our extensive experience and strong reputation of our management team combined with our long-standing relationships with other market participants provide us with a competitive advantage in efficiently sourcing, purchasing and entitling land. We are actively involved in every step of the land entitlement, home design and construction process with our controlled builders. Our management team has developed significant collaborative relationships over decades with land sellers, developers, contractors, lenders, brokers and investors throughout the Dallas and Atlanta markets. Our deep and wide-ranging knowledge of the Dallas and Atlanta markets and our ability to quickly and efficiently identify, acquire and develop land in desirable locations and on favorable terms are key to our success.

Disciplined Investment Approach
We seek to maximize value over the long-term and operate our business to mitigate risks in the event of a downturn by controlling costs and focusing on regional and local market trends.


4


Our management team has gained significant operating expertise through varied economic cycles. The perspective gained from these experiences has helped shape our investment approach. We believe that our management team has learned to effectively evaluate housing trends in our markets, and to react quickly and rationally to market changes. For example, we made significant land investments during the downturn at prices that we view as favorable. Our cycle-tested management approach balances strategic planning with local day-to-day decision-making responsibilities freeing up our controlled builders to concentrate on growing our homebuilding business rather than focusing on obtaining capital to fund their operations. We believe that our strict operating discipline provides us with a competitive advantage in seeking to maximize returns while minimizing risk.

Business Strategy
We believe we are well-positioned for growth in our core Dallas and Atlanta markets through the disciplined execution of the following elements of our strategy:

Combine Land Acquisition and Development Expertise with Homebuilding Operations to Maximize Profitability
Our ability to identify, acquire and develop land in desirable locations and on favorable terms is critical to our success. We evaluate land opportunities based on how we expect such opportunities will contribute to overall profitability and returns, rather than how they might drive volume on a market basis. We believe our expertise in land development and planning enables us to create desirable communities that meet or exceed our target homebuyer’s expectations, while selling homes at competitive prices. Our strategy of holding land inventory provides us with a multi-year supply of lots for future homebuilding. We focus on the development of entitled parcels in communities where we can generally sell all lots and homes within 24 to 60 months from the start of sales. This focus allows us to limit exposure to land development and market cycle risk while pursuing favorable returns on our investments. We seek to minimize our exposure to land risk through disciplined management of entitlements, the use of land and lot options and other flexible land acquisition arrangements.

Maximize Benefits of Diversified Homebuilding and Land Development Structure
Our diversified homebuilding and land development structure provides the flexibility to monetize the value of our land assets either by building and selling homes through our controlled builders or developing land and selling finished lots to large unaffiliated homebuilders. When evaluating our land assets, we consider the potential contribution of each asset to our overall performance, taking into account the timeframe over which we may monetize the asset. While we currently expect the majority of our land to be utilized by our controlled homebuilders, we believe our land development and homebuilding strategy provides us with increased flexibility to seek to maximize risk-adjusted returns as market conditions warrant.

Increase Long-Term Value by Investing in Infrastructure
In our communities, we typically make enhanced investment in infrastructure, including landscaping and amenity centers, and enforce higher construction standards through our controlled builders. We believe this creates greater long-term value for us and for our controlled builders, homebuyers, shareholders and the communities in which we build.

Drive Revenue by Opening New Communities from Existing Land Supplies
We have strategically invested in new land in a number of prime neighborhoods in our core markets. We currently own or control over 6,200 home sites in the Dallas and Atlanta markets. We expect these land purchases to provide us with the opportunity for continued revenue growth and strong gross margin performance. We continue to identify development opportunities that should allow us to profit from lot sales, construction interest and our 50% equity interest in the profits of our controlled builders.

Increase Market Positions in Dallas and Atlanta
We believe that there are significant opportunities to profitably expand in our core Dallas and Atlanta markets. We continually review the allocation of our investments in these markets taking into account demographic trends and the likely impact on our operating results. We use the results of these reviews to reallocate our investments to those areas where we believe we can maximize our profitability and return on capital. We seek to use our local relationships with land sellers, brokers and investors to pursue the purchase of additional land parcels in our core markets. While our primary growth strategy focuses on increasing our market position in our existing markets, we may, on an opportunistic basis, explore expansion into attractive new markets.


5


Superior Design, Broad Product Range and Enhanced Homebuying Experience
Within each of our core markets, we partner our expertise with our controlled builders to design attractive neighborhoods and homes to appeal to a wide variety of potential homebuyers. One of our core operating philosophies is to create a culture which provides a positive, memorable experience for our homebuyers through active engagement in the building process. At higher price points, we provide our homebuyers with customization options to suit their specific needs and tastes. We engineer our homes for energy efficiency to reduce the impact on the environment and result in lower energy costs for our homebuyers. In consultation with nationally and locally recognized architecture firms, interior and exterior consultants and homeowner focus groups, we research and design a diversified range of products for various levels and price points. Our homebuilding projects include townhomes, single family homes and luxury custom homes. We believe we can adapt quickly to changing market conditions and optimize performance and returns while strategically reducing portfolio risk because of our diversified product strategy.

Pursue Further Growth Through the Prudent Use of Leverage
As of December 31, 2017, our debt to total capitalization ratio is approximately 22%. It is our intent to prudently employ leverage to continue to invest in our land acquisition, development and homebuilding businesses. We intend to target a total capitalization ratio of approximately 35% to 40%, which we expect will provide us with significant additional growth capital.

Pursue Acquisitions of Additional Homebuilders
We intend to pursue the acquisition of additional homebuilders in our core and new markets. Our preference is to continue to acquire controlling interests in homebuilders with existing management continuing to own a significant ownership stake. We will seek to acquire and then retain management teams which have the strong local relationships with land owners and have a positive reputation for building well-crafted homes in their markets. We expect that our ability to provide capital discipline and strategic oversight will complement the local skills, relationships and reputations of our future homebuilder partners.

Our Homebuilding Neighborhoods
Our homebuilding neighborhoods usually take approximately 24 to 60 months to complete from the start of sales, although certain neighborhoods may take longer to complete. The following table presents neighborhood information relating to each of our controlled builders as of December 31, 2017, as well as current neighborhoods under development. Our backlog reflects the number and value of homes for which we have entered into sales contracts with customers but not yet delivered.
Neighborhoods
 
Year of
First
Delivery
(1)
 
Total
Number of
Home Sites
(2)
 
Cumulative
Homes Closed
as of
December 31, 2017
 
Backlog at
December 31, 2017
 
Homes Still to be Closed as of December 31, 2017
 
Sales
Price Range
(in thousands)
 
Home Size
Range
(sq. ft.)
Texas
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CB JENI Viridian
 
2013
 
278

 
203

 
9

 
66

 
$250 - $310
 
1,500 - 2,300
CB JENI Mustang Park
 
2014
 
177

 
158

 
8

 
11

 
$300 - $380
 
1,500 - 2,300
CB JENI Canals at Grand Park
 
2015
 
94

 
57

 
7

 
30

 
$320 - $430
 
1,700 - 2,300
CB JENI Raiford Crossing
 
2015
 
53

 
53

 

 

 
$270 - $370
 
1,700 - 2,600
CB JENI Hometown
 
2016
 
96

 
34

 

 
62

 
$270 - $320
 
1,700 - 2,300
CB JENI Stacy Crossing
 
2016
 
145

 
77

 
11

 
57

 
$270 - $360
 
1,500 - 2,300
CB JENI Stonegate
 
2016
 
79

 
28

 
4

 
47

 
$260 - $310
 
1,500 - 2,000
CB JENI Los Rios
 
2016
 
98

 
73

 
5

 
20

 
$250 - $320
 
1,400 - 2,100
CB JENI McKinney Ranch
 
2016
 
71

 
51

 
8

 
12

 
$250 - $310
 
1,500 - 2,000
CB JENI Heritage Creekside
 
2017
 
105

 
2

 
15

 
88

 
$310 - $350
 
1,900 - 2,100
CB JENI Montgomery Ridge
 
2017
 
32

 

 
4

 
28

 
$300 - $380
 
1,700 - 2,600
CB JENI Sloan Creek
 
2017
 
36

 
29

 

 
7

 
$260 - $360
 
1,400 - 2,100
CB JENI Frisco Springs
 
2018
 
154

 

 

 
154

 
TBD
 
TBD
CB JENI/Normandy Southgate
 
2018
 
150

 

 

 
150

 
TBD
 
TBD
CB JENI Vista del Lago
 
2018
 
148

 

 

 
148

 
TBD
 
TBD
CB JENI Sunset Pointe
 
2018
 
115

 

 

 
115

 
TBD
 
TBD
CB JENI Iron Horse
 
2018
 
92

 

 

 
92

 
$240 - $260
 
1,500 - 2,000
CB JENI Ridgeview Townhomes
 
2018
 
91

 

 

 
91

 
TBD
 
TBD
CB JENI Fairview Apple’s Crossing
 
2018
 
87

 

 

 
87

 
TBD
 
TBD
CB JENI Samoe
 
2018
 
83

 

 

 
83

 
$250 - $290
 
1,500 - 2,000

6


Neighborhoods
 
Year of
First
Delivery
(1)
 
Total
Number of
Home Sites
(2)
 
Cumulative
Homes Closed
as of
December 31, 2017
 
Backlog at
December 31, 2017
 
Homes Still to be Closed as of December 31, 2017
 
Sales
Price Range
(in thousands)
 
Home Size
Range
(sq. ft.)
CB JENI Terraces at Las Colinas
 
2018
 
79

 

 

 
79

 
$320 - $370
 
1,500 - 2,000
CB JENI Reserves on Parker
 
2018
 
63

 

 

 
63

 
$300 - $340
 
1,800 - 2,300
CB JENI Meridian at Southgate
 
2018
 
47

 

 

 
47

 
$250 - $275
 
1,500 - 1,800
CB JENI Riverset
 
2019
 
88

 

 

 
88

 
$220 - $260
 
1,500 - 2,000
Normandy Cypress Meadows
 
2014
 
139

 
98

 
15

 
26

 
$490 - $700
 
2,700 - 4,400
Normandy Viridian
 
2014
 
66

 
47

 
6

 
13

 
$375 - $700
 
2,200 - 4,400
Normandy Mustang Park
 
2015
 
83

 
72

 
8

 
3

 
TBD
 
TBD
Normandy Cottonwood Crossing
 
2015
 
48

 
48

 

 

 
$300 - $460
 
1,800 - 3,450
Normandy Lakeside
 
2015
 
76

 
76

 

 

 
$410 - $700
 
2,200 - 4,400
Normandy Twin Creeks
 
2016
 
72

 
50

 

 
22

 
$350 - $500
 
1,800 - 3,450
Normandy Watters Branch
 
2017
 
48

 
1

 
10

 
37

 
$390 - $530
 
2,000 - 4,000
Normandy Reserves on Parker Ranch
 
2018
 
106

 

 

 
106

 
$340 - $400
 
1,700 - 2,900
Normandy Southaven
 
2018
 
105

 

 

 
105

 
TBD
 
TBD
Normandy Fairview Apple’s Crossing
 
2018
 
95

 

 

 
95

 
TBD
 
TBD
Normandy Shaddock Estates
 
2018
 
92

 

 

 
92

 
$530 - $650
 
2,600 - 4,500
Normandy Spicewood
 
2018
 
82

 

 
7

 
75

 
$350 - $380
 
2,200 - 2,600
Normandy Edgewood
 
2018
 
46

 

 

 
46

 
$320 - $360
 
2,200 - 2,700
Normandy Park Vista
 
2019
 
332

 

 

 
332

 
TBD
 
TBD
Southgate
 
2013
 
54

 
54

 

 

 
$640 - $870
 
3,300 - 4,660
Southgate Canals at Grand Park
 
2015
 
41

 
27

 
9

 
5

 
$775 - $865
 
3,934 - 4,571
Southgate Bethany Mews
 
2016
 
4

 
4

 

 

 
$770 - $790
 
3,900 - 3,925
Southgate Twin Creeks
 
2016
 
91

 
6

 
1

 
84

 
$490 - $950
 
1,800 - 3,944
Southgate Angel Field West
 
2016
 
62

 
36

 
11

 
15

 
$560 - $760
 
3,400 - 4,500
Southgate Bluffs at Austin Waters
 
2016
 
69

 
46

 
20

 
3

 
$560 - $880
 
3,100 - 4,400
Southgate Homestead
 
2017
 
30

 
1

 
4

 
25

 
$550 - $609
 
3,406 - 3,840
Southgate Oaks of Argyle
 
2017
 
10

 

 
2

 
8

 
$559 - $679
 
3,238 - 4,242
Southgate Edgewood
 
2018
 
98

 

 

 
98

 
TBD
 
TBD
Southgate Garilen
 
2018
 
70

 

 

 
70

 
$569 - $789
 
2,629 - 4,398
Southgate Stoney Creek
 
2018
 
50

 

 

 
50

 
$599 - $699
 
3,453 - 4,425
Southgate Brockdale Estates
 
2018
 
43

 

 

 
43

 
TBD
 
TBD
Southgate North
 
2018
 
40

 

 

 
40

 
TBD
 
TBD
Southgate 5T Ranch
 
2018
 
35

 

 
1

 
34

 
$559 - $678
 
3,238 - 4,241
Southgate Parker/Southgate Ranch
 
2018
 
32

 

 

 
32

 
TBD
 
TBD
Centre Living Homes Residences at Cityline
 
2017
 
32

 
3

 
1

 
28

 
$525 - $650
 
2,700 - 3,300
Centre Living Homes Live Oak Landings
 
2017
 
26

 
2

 
4

 
20

 
$425 - $475
 
1,450 - 1,850
Centre Living Homes Ross Avenue Heights
 
2017
 
18

 
2

 

 
16

 
$575 - $600
 
2,400
Centre Living Homes Caddo Center
 
2017
 
10

 

 

 
10

 
$320 - $350
 
1,400
Centre Living Homes Westside Manor
 
2017
 
7

 
4

 

 
3

 
$1,100 - $1,500
 
3,000 - 4,000
Centre Living Homes Fort Worth Avenue
 
2018
 
56

 

 

 
56

 
$425 - $475
 
2,000 - 2,400
Centre Living Homes Swiss & Haskell
 
2018
 
29

 

 

 
29

 
$400 - $550
 
1,500 - 2,900
Centre Living Homes Roseland Avenue
 
2018
 
16

 

 

 
16

 
$410 - $425
 
1,500 - 1,800
Centre Living Homes Polk Avenue
 
2018
 
13

 

 

 
13

 
$450 - $600
 
2,200 - 3,000
Centre Living Homes Scurry Street
 
2018
 
10

 

 

 
10

 
$400 - $425
 
1,600 - 1,700
Centre Living Homes Bluffview
 
2019
 
33

 

 

 
33

 
$500 - $600
 
2,100 - 3,000
Centre Living Homes Bayonne
 
2019
 
30

 

 

 
30

 
$425 - $500
 
2,000 - 2,400
Centre Living Homes Canty
 
2019
 
23

 

 

 
23

 
$425 - $500
 
1,800 - 2,400
Centre Living Homes Neely/Crawford
 
2019
 
16

 

 

 
16

 
$425 - $500
 
1,800 - 2,400
Centre Living Homes Ervay
 
2019
 
15

 

 

 
15

 
$425 - $500
 
1,600 - 2,000
Centre Living Homes Tyler
 
2019
 
13

 

 

 
13

 
$400 - $450
 
1,800 - 2,400

7


Neighborhoods
 
Year of
First
Delivery
(1)
 
Total
Number of
Home Sites
(2)
 
Cumulative
Homes Closed
as of
December 31, 2017
 
Backlog at
December 31, 2017
 
Homes Still to be Closed as of December 31, 2017
 
Sales
Price Range
(in thousands)
 
Home Size
Range
(sq. ft.)
Future Developments at Twin Creeks
 
2018
 
465

 

 

 
465

 
$490 - $950
 
1,800 - 3,450
Texas Total
 
5,392

 
1,342

 
170

 
3,880

 
 
 
 
Georgia
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Providence Group Custom Homes
 
2012
 
50

 
50

 

 

 
$800 - $850
 
3,800 - 4,200
The Providence Group & Associates
 
2013
 
14

 
14

 

 

 
$690 - $730
 
3,700 - 4,400
TPG Homes at Ruth’s Farm
 
2014
 
33

 
26

 

 
7

 
$645 - $845
 
3,700 - 4,200
TPG Homes at Seven Norcross
 
2014
 
44

 
44

 

 

 
$300 - $465
 
2,000 - 3,000
TPG Homes at Bellmoore Park
 
2015
 
618

 
129

 
30

 
459

 
$440 - $900
 
2,300 - 4,600
TPG Homes – Highpointe at Vinings
 
2015
 
84

 
57

 
3

 
24

 
$580 - $750
 
2,800 - 4,500
TPG Homes at Traditions
 
2015
 
154

 
73

 
8

 
73

 
$495 - $700
 
2,300 - 4,300
TPG Homes at The Reserve at Providence
 
2015
 
23

 
13

 

 
10

 
$950 - $1,100
 
3,700 - 5,800
TPG Homes at East Village
 
2015
 
62

 
54

 
3

 
5

 
$335 - $385
 
2,000 - 2,300
TPG Homes at Rivers Edge
 
2015
 
130

 
130

 

 

 
$280 - $425
 
2,000 - 2,800
TPG Homes at Central Park at Deerfield Township
 
2016
 
283

 
51

 
18

 
214

 
$440 - $625
 
2,000 - 4,200
TPG Homes at Brookmere
 
2016
 
194

 
75

 
11

 
108

 
$330 - $675
 
2,000 - 4,600
TPG Homes at Townes at Chastain
 
2016
 
162

 
52

 
9

 
101

 
$440 - $650
 
2,200 - 2,800
TPG Homes at Glens Sugarloaf
 
2016
 
92

 
36

 
7

 
49

 
$330 - $400
 
2,000 - 2,700
TPG Homes at Roswell Towneship
 
2016
 
92

 
35

 
12

 
45

 
$370 - $450
 
2,000 - 2,300
TPG Homes at Dunwoody Township
 
2016
 
40

 
26

 
4

 
10

 
$480 - $505
 
2,300 - 2,500
TPG Homes at Cogburn
 
2016
 
19

 
16

 
1

 
2

 
$540 - $650
 
3,200 - 4,300
TPG Homes at Suwanee Station
 
2017
 
70

 
16

 
9

 
45

 
$310 - $350
 
2,000
TPG Homes at East of Main
 
2017
 
83

 
31

 
14

 
38

 
$500 - $900
 
2,200 - 3,400
TPG Homes at Cresslyn
 
2017
 
49

 
10

 
5

 
34

 
$380 - $495
 
2,000 - 2,700
TPG Homes at Stringer Road
 
2018
 
195

 

 

 
195

 
$380 - $650
 
1,800 - 4,200
TPG Homes at Grant Circle
 
2018
 
150

 

 

 
150

 
TBD
 
1,400 - 2,300
TPG Homes at Woodstock
 
2018
 
57

 

 

 
57

 
$425 - $600
 
2,070 - 2,600
TPG Homes at Chelsea Walk
 
2018
 
49

 

 
6

 
43

 
$475 - $620
 
2,000 - 2,800
TPG Homes at Orion Drive
 
2018
 
41

 

 

 
41

 
TBD
 
1,975 - 2,070
TPG Homes at Tiffany Square
 
2018
 
22

 

 

 
22

 
$650 - $800
 
3,000 - 3,200
TPG Homes at Cricket Lane
 
2018
 
20

 

 

 
20

 
TBD
 
3,000 - 3,200
TPG Homes at Westside Village
 
2018
 
19

 

 

 
19

 
TBD
 
1,975 - 2,070
Georgia Total
 
 
 
2,849

 
938

 
140

 
1,771

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Homes
 
 
 
8,241

 
2,280

 
310

 
5,651

 
 
 
 
 
(1)
Years subsequent to 2017 are anticipated.
(2)
Number of homes in each neighborhood is subject to change due to changes in zoning, building design, construction, and similar matters, including local regulations which impose restrictive zoning and density requirements in order to limit the number of homes that can eventually be built within the boundaries of a particular locality.


8


Neighborhood Sales by Market
The following table sets forth homes delivered and sales revenue for our controlled builders’ operations and lots delivered and sales revenue from third-party homebuilders for our land development operations by market for the years ended December 31, 2017, 2016 and 2015.
 
 
Year Ended December 31,
2017
 
2016
 
2015
Neighborhoods
 
Home
Sales
 
Homes Delivered
 
Home
Sales
 
Homes Delivered
 
Home
Sales
 
Homes Delivered
 
 
($ in thousands)
Homes
 
 
 
 
 
 
 
 
 
 
 
 
Texas
 
 
 
 
 
 
 
 
 
 
 
 
CB JENI Berkshire Place
 
$

 

 
$
5,770

 
22

 
$
12,752

 
52

CB JENI Brick Row Townhomes
 
$

 

 
$
5,414

 
17

 
$
6,030

 
20

CB JENI Canals at Grand Park
 
$
1,770

 
5

 
$
16,393

 
47

 
$
1,581

 
5

CB JENI Heritage Creekside
 
$
652

 
2

 
$

 

 
$

 

CB JENI Hometown
 
$
5,160

 
17

 
$
4,873

 
17

 
$

 

CB JENI Los Rios
 
$
14,375

 
50

 
$
6,260

 
23

 
$

 

CB JENI McKinney Ranch
 
$
11,541

 
43

 
$
1,995

 
8

 
$

 

CB JENI Mustang Park
 
$
15,187

 
45

 
$
17,371

 
56

 
$
14,950

 
54

CB JENI Pecan Park
 
$

 

 
$

 

 
$
4,583

 
20

CB JENI Raiford Crossing
 
$
1,580

 
5

 
$
13,419

 
43

 
$
1,497

 
5

CB JENI Sloan Creek
 
$
8,875

 
29

 
$

 

 
$

 

CB JENI Stacy Crossing
 
$
17,238

 
55

 
$
6,573

 
22

 
$

 

CB JENI Stonegate
 
$
7,936

 
28

 
$

 

 
$

 

CB JENI Viridian
 
$
19,061

 
72

 
$
5,237

 
21

 
$
9,900

 
42

Normandy Alto Vista Irving
 
$

 

 
$

 

 
$
6,307

 
12

Normandy Cottonwood Crossing
 
$
3,682

 
10

 
$
12,542

 
36

 
$
676

 
2

Normandy Cypress Meadows
 
$
18,640

 
32

 
$
19,240

 
34

 
$
15,700

 
28

Normandy Lake Vista Coppell
 
$

 

 
$

 

 
$
2,582

 
6

Normandy Lakeside
 
$
490

 
1

 
$
13,513

 
27

 
$
15,765

 
28

Normandy Mustang Park
 
$
18,526

 
35

 
$
16,436

 
34

 
$
1,307

 
3

Normandy Pecan Park
 
$

 

 
$

 

 
$
8,968

 
22

Normandy Twin Creeks
 
$
11,299

 
27

 
$
9,558

 
23

 
$

 

Normandy Viridan
 
$
3,794

 
11

 
$
2,533

 
7

 
$
7,951

 
27

Normandy Watters Branch
 
$
394

 
1

 
$

 

 
$

 

Southgate
 
$
3,488

 
4

 
$
14,623

 
20

 
$
9,409

 
13

Southgate Angel Field West
 
$
13,915

 
20

 
$
10,155

 
15

 
$

 

Southgate Bethany Mews
 
$
1,300

 
2

 
$

 

 
$

 

Southgate Bluffs at Austin Waters
 
$
14,462

 
20

 
$
7,479

 
11

 
$

 

Southgate Canals at Grand Park
 
$
16,850

 
19

 
$
6,251

 
8

 
$

 

Southgate Homestead
 
$
578

 
1

 
$

 

 
$

 

Southgate Twin Creeks
 
$
2,298

 
4

 
$
1,193

 
2

 
$

 

Centre Living
 
$

 

 
$
4,645

 
8

 
$
2,021

 
2

Centre Living Homes Live Oak Landings
 
$
850

 
2

 
$

 

 
$

 

Centre Living Homes Residences at Cityline
 
$
1,645

 
3

 
$

 

 
$

 

Centre Living Homes Ross Avenue Heights
 
$
967

 
2

 
$

 

 
$

 

Centre Living Homes Westside Manor
 
$
4,334

 
4

 
$

 

 
$

 

Texas Total
 
$
220,887

 
549

 
$
201,473

 
501

 
$
121,979

 
341


9


 
 
Year Ended December 31,
2017
 
2016
 
2015
Neighborhoods
 
Home
Sales
 
Homes Delivered
 
Home
Sales
 
Homes Delivered
 
Home
Sales
 
Homes Delivered
 
 
($ in thousands)
Homes
 
 
 
 
 
 
 
 
 
 
 
 
Georgia
 
 
 
 
 
 
 
 
 
 
 
 
Providence Luxury Homes
 
$

 

 
$
1,640

 
1

 
$
3,183

 
4

The Providence Group & Associates
 
$

 

 
$
2,750

 
4

 
$
1,871

 
3

The Providence Group Custom Homes
 
$
2,241

 
3

 
$
2,469

 
5

 
$
34,308

 
58

TPG Homes
 
$

 

 
$

 

 
$
27,479

 
74

TPG Homes at Bellmoore Park
 
$
39,515

 
62

 
$
29,414

 
49

 
$
11,070

 
18

TPG Homes at Bluffs at Lennox
 
$

 

 
$
8,332

 
15

 
$

 

TPG Homes at Brookmere
 
$
19,240

 
48

 
$
11,333

 
27

 
$

 

TPG Homes at Byers Landing
 
$

 

 
$
429

 
1

 
$

 

TPG Homes at Central Park at Deerfield Township
 
$
16,071

 
32

 
$
9,682

 
19

 
$

 

TPG Homes at Cogburn
 
$
5,302

 
9

 
$
4,351

 
7

 
$

 

TPG Homes at Crabapple
 
$

 

 
$

 

 
$
849

 
2

TPG Homes at Cresslyn
 
$
4,094

 
10

 
$

 

 
$

 

TPG Homes at Dunwoody Township
 
$
11,314

 
25

 
$
466

 
1

 
$

 

TPG Homes at East of Main
 
$
19,983

 
31

 
$

 

 
$

 

TPG Homes at East Village
 
$
5,912

 
17

 
$
9,911

 
29

 
$

 

TPG Homes at Highlands
 
$

 

 
$

 

 
$
2,650

 
9

TPG Homes at Jamestown
 
$

 

 
$

 

 
$
9,917

 
34

TPG Homes at Nesbitt Reserve
 
$

 

 
$
440

 
1

 
$

 

TPG Homes at Rivers Edge
 
$
12,761

 
37

 
$
19,978

 
61

 
$

 

TPG Homes at Roswell Towneship
 
$
11,131

 
27

 
$
3,025

 
8

 
$

 

TPG Homes at Ruths Farm
 
$

 

 
$
7,463

 
10

 
$
10,332

 
14

TPG Homes at Seven Norcross
 
$
1,687

 
4

 
$
8,516

 
23

 
$

 

TPG Homes at Sugarloaf (Glens)
 
$
8,533

 
24

 
$
4,129

 
12

 
$

 

TPG Homes at Suwanee Station
 
$
5,102

 
16

 
$

 

 
$

 

TPG Homes at The Reserve at Providence
 
$
3,625

 
4

 
$
1,191

 
1

 
$

 

TPG Homes at Three Bridges
 
$

 

 
$

 

 
$
15,508

 
53

TPG Homes at Townes at Chastain
 
$
23,532

 
49

 
$
1,459

 
3

 
$

 

TPG Homes at Traditions
 
$
11,551

 
22

 
$
16,878

 
33

 
$

 

TPG Homes at Whitfield Parc
 
$

 

 
$
1,017

 
3

 
$
15,121

 
45

TPG Homes – Highpointe at Vinings
 
$
13,163

 
21

 
$
18,818

 
30

 
$

 

Georgia Total
 
$
214,757

 
441

 
$
163,691

 
343

 
$
132,288

 
314

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Homes
 
$
435,644

 
990

 
$
365,164

 
844

 
$
254,267

 
655

 
(1)
Lots owned and developed to build homes sold to a third-party developer.


10



 
Year Ended December 31,
2017
 
2016
 
2015
Neighborhoods
 
Lot
Sales
 
Lots Delivered
 
Lot
Sales
 
Lots Delivered
 
Lot
Sales
 
Lots Delivered
 
 
($ in thousands)
Lots
 
  

 
  

 
  

 
  

 
  

 
  

Texas
 
 
 
 
 
 
 
 
 
 
 
 
Angel Field
 
$
173

 
1

 
$
167

 
1

 
$

 

Austin Waters
 
$
168

 
1