On this page of StockholderLetter.com we present the latest annual shareholder letter from Green Brick Partners, Inc. — ticker symbol GRBK. Reading current and past GRBK letters to shareholders can bring important insights into the investment thesis.
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3/11/2025 Letter Continued (Full PDF)
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4/19/2023 GRBK Stockholder Letter
• 3/18/2024 GRBK Stockholder Letter
• More "General Contractors & Builders" Category Stockholder Letters
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GRBK Benford's Law Stock Score = 86
3/11/2025 Letter Continued (Full PDF)
•
4/19/2023 GRBK Stockholder Letter•
3/18/2024 GRBK Stockholder Letter•
More "General Contractors & Builders" Category Stockholder Letters•
GRBK Benford's Law Stock Score = 86GRBK Shareholder/Stockholder Letter Transcript:
2 0 24 ANNUAL REPORT Cover: Southgate Homes | The Reserve at Watters | Allen, TX Centre Living Homes | Newman Village Townhomes | Frisco, TX 2 SHARE H OL DE R LE T TE R Celebrating 10-Year Anniversary as a Public Company with Record Results. It is with gratitude that we commemorate Green Brick s 10th anniversary as a publicly traded company. This milestone marks a decade of significant growth and expansion, a testament to the strength of our business model, the quality of our products and services, and our exceptional team. In 2015, Green Brick delivered just 655 homes. That number grew to 3,783 homes delivered in 2024, generating total revenues that exceeded over $2 billion and after tax income of $382 million. Our land inventory expanded significantly during that time, increasing by almost 700% to over 37,800 lots. This extraordinary growth has occurred while maintaining a conservative capital structure, with a current debt-to-total-capital ratio of just 17.2%. Our book value grew from $7.36 per share in 2015 to $35.46 in 2024. Green Brick is the third largest homebuilder in the Dallas-Fort Worth area, consistently the nation s largest new housing market. This success and growth are a direct result of the tireless efforts of our team, which has grown from approximately 200 employees in 2015 to 650 today. I want to extend my deepest appreciation to the entire team for its contributions. 2024 proved to be a year of exceptional performance, with record breaking results despite the challenging backdrop of a volatile mortgage rate environment. Our total revenues surpassed the $2 billion mark for the first time, driven by a record number of home closings. Notably, we also achieved a record high homebuilding gross margin of 33.8% for the full year, a metric that has consistently led all public homebuilding peers in recent years. Diluted earnings per share increased 37.6% yearover-year to $8.45. Last year we earned more than our entire equity base in 2015. While the broader housing market has benefited from demographic shifts and a long-term shortage of supply, we believe there are several key factors specific to Green Brick that have driven our success. First, our land position and ability to self-develop remain paramount to our long-term success and profitability. While many public homebuilding peers have embraced the land light model, Green Brick differentiates itself by strategically buying high quality land on our balance sheet and selfdeveloping the land into finished lots. We understand the opportunities and risks in our markets. With our deep knowledge and unique approach to land, we DAVID EINHORN Chairman & Co-Founder 3 believe that we can achieve significant cost savings and lower effective financing costs versus the land light model, enabling us to achieve more capital-efficient growth. Contrary to the perception that a land-intensive strategy may hinder returns, we have consistently demonstrated a strong track record of delivering value to our shareholders. Since 2022, our return on equity averaged 27.7%, while our return on assets averaged 17.6%, underscoring the effectiveness of our landfocused strategy. Secondly, our builders distinguish themselves by aspiring to be more than just another homebuilder within our submarkets. We are dedicated to building the best homes in our price ranges and creating thriving communities and neighborhoods with enduring desirability. We allocate significant capital to community enhancements, including superior amenities, lush landscaping, and other value-enhancing features. This commitment to excellence has been recognized by the industry, with our builders garnering numerous prestigious awards and establishing themselves as preferred builders within their respective markets. We boast a unique advantage with one of the most diversified customer bases within the public homebuilding sector, served by our seven distinct builder brands, each catering to specific consumer segments. Lastly, we are well-positioned for long-term growth. At the end of 2024, our total lots owned and controlled increased by 31.9% year over year to exceed 37,800 lots, of which 4,700 are finished lots. Importantly, over 80% of these finished lots are in infill and infilladjacent submarkets where supply is more constrained. Given our current robust land and lot position, we are adopting a more selective and opportunistic approach to land acquisitions. We will diligently evaluate the optimal allocation of capital, including share repurchases, with the primary objective of maximizing shareholder value. As our first decade came to a close, we have reflected with pride on the collective achievements of the Green Brick team. Moving forward, our priority remains in driving business growth, creating value for our shareholders, delivering exceptional homes to our homebuyers, and contributing positively to the communities we serve, all while maintaining a strong and investment grade balance sheet. JAMES R. BRICKMAN CEO & Co-Founder CAGR +25% $2,099 $291 2015 2024 Total Revenues (in Millions) CAGR +41% $8.45 $0.38 2015 Diluted EPS 2024 33.8% 20.6% 2015 2024 Homebuilding Gross Margin CAGR +19% $35.46 $7.36 2015 2024 Book Value Per Share CAGR +26% 37,831 4,734 2015 2024 Total Lots Owned and Controlled Southgate Homes | Windsong Ranch | Prosper, TX 4