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.
2 0 2 3 A N N UA L R E P O RT
Cover: Centre Living Homes | Newman Village | Frisco, TX Trophy Signature Homes | Eastridge | McKinney, TX
Fe at u red Co m m u n i ty | Eastr i dge Eastridge is located in McKinney, Texas, about 40 minutes northeast of Dallas. The master planned community is conveniently located near several highways, including Highway 121, U.S. 380, and Highway 75. Residents enjoy numerous amenities and benefit from a small-town atmosphere and desirable schools within the highly rated McKinney East school district. Green Brick Partners is developing approximately 2,400 homesites in this master planned community where Trophy Signature Homes is a featured homebuilder. Eastridge is just one of several large master planned communities in the Dallas-Fort Worth area being developed by Green Brick Partners that will help supply the housing needs for years to come. 2
Sh a re h o l d er Let te r We are delighted to share our 2023 highlights and our reflections on the accomplishments of the past year. As you may recall, in the face of increased interest rates, 2023 commenced with significant uncertainty surrounding the housing market. However, despite the challenges presented, our experienced hardworking teams demonstrated remarkable adaptability, achieving results that not only exceeded our expectations for 2023, but that also were the best in company history. For the full year 2023, Green Brick delivered a record number of homes and generated a record $1.8 billion of total revenue. Additionally, we led the industry with a homebuilding gross margin of 30.9%. Our strategic advantages, as discussed below, and operating efficiencies also led to our record gross profit of $548 million and record diluted earnings per share of $6.14. The results we achieved in 2023 reflect the strong foundation for growth our team has built through its hard work and dedication. Our growth potential is the best part of our future. Our expansion plans into other markets focus on broad penetration into Austin and Houston with our value proposition builder, Trophy Signature Homes. Since its founding, Trophy s share of our revenue has grown from less than 2% of the company s revenue in 2019 to over 38% in 2023. By itself, Trophy is now the 7th largest homebuilder in Dallas-Fort Worth and we expect over time that it will win significant share in other markets. We are optimistic about Trophy s future. We anticipate expanding investment in our existing brands and markets while rapidly deploying capital to expand Trophy s brand into new markets. Since the availability and cost of capital continue to serve as significant obstacles for some builders and developers, our investment grade balance sheet and experienced teams position us to continue to capture market share. The success story of Green Brick, however, is about more than the meteoric growth of our Trophy brand. The heart of Green Brick s success lies in our strategic advantages in land and development, financial discipline in our strong markets, and, most importantly, our people. Markets matter. Dallas-Fort Worth and Atlanta, our two primary markets, continue to rank very high among inmigration destination cities and are among the largest housing markets in the nation. These markets benefit from favorable demographic shifts and strong employment. Through years of work, our geographic footprint and our philosophy of acquiring land in infill and infill-adjacent locations have assembled what we believe is one of the best lot and land positions in the industry. 80% of our finished lots at the end of 2023 were in desirable infill and infill adjacent locations. Approximately 83% of our lots were owned at the end of 2023. We mitigate risk and enhance margin by maintaining low leverage at a low cost and purchasing top quality land based on conservative underwriting, as opposed to carrying land off balance sheet and paying third-party developers a double-digit cost of capital. Our 25% ROE and 11.4% net-debt-to-total-capital ratio at the end of 2023 demonstrate that our decades of experience, entitling and self-developing neighborhoods with low leverage produces industry leading risk adjusted returns. Operationally, our team made great progress in reducing construction cycle times from over 8 months at the end of 2022 to 5.4 months at the end of 2023. In particular, Trophy s cycle times were only 3.7 months at the end of 2023, less than half the time as the end of 2022. This enabled us to improve our inventory turns and generate better returns on capital. We are working diligently to further improve construction cycle times during 2024. We recognize we could not have achieved these results without the contributions of many people. We wish to express our gratitude for the continued support from thousands of homebuyers, our employees, trade partners, lenders, and shareholders. We are optimistic that we are well-positioned to capitalize on the long-term housing supply and demand fundamentals in our chosen markets, and we look forward to the opportunities and challenges that lie ahead of us. DAVID EINHORN Chairman & Co-Founder 3 JAMES R. BRICKMAN CEO & Co-Founder
Southgate Homes | The Reserve at Watters | Allen, TX 4
 • shareholder letter icon 3/18/2024 Letter Continued (Full PDF)
 • stockholder letter icon 4/19/2023 GRBK Stockholder Letter
 • stockholder letter icon More "General Contractors & Builders" Category Stockholder Letters
 • Benford's Law Stocks icon GRBK Benford's Law Stock Score = 84


GRBK Shareholder/Stockholder Letter Transcript:

2 0 2 3 A N N UA L R E P O RT

Cover: Centre Living Homes | Newman Village | Frisco, TX
Trophy Signature Homes | Eastridge | McKinney, TX

Fe at u red Co m m u n i ty | Eastr i dge
Eastridge is located in McKinney, Texas, about 40 minutes northeast of Dallas. The master planned
community is conveniently located near several highways, including Highway 121, U.S. 380, and
Highway 75. Residents enjoy numerous amenities and benefit from a small-town atmosphere and
desirable schools within the highly rated McKinney East school district.
Green Brick Partners is developing approximately 2,400 homesites in this master planned community
where Trophy Signature Homes is a featured homebuilder. Eastridge is just one of several large
master planned communities in the Dallas-Fort Worth area being developed by Green Brick Partners
that will help supply the housing needs for years to come.
2

Sh a re h o l d er Let te r
We are delighted to share our 2023 highlights and our reflections on the accomplishments of the past year. As
you may recall, in the face of increased interest rates, 2023 commenced with significant uncertainty surrounding
the housing market. However, despite the challenges presented, our experienced hardworking teams demonstrated
remarkable adaptability, achieving results that not only exceeded our expectations for 2023, but that also were the
best in company history.
For the full year 2023, Green Brick delivered a record number of homes and generated a record $1.8 billion of total
revenue. Additionally, we led the industry with a homebuilding gross margin of 30.9%. Our strategic advantages, as
discussed below, and operating efficiencies also led to our record gross profit of $548 million and record diluted
earnings per share of $6.14.
The results we achieved in 2023 reflect the strong foundation for growth our team has built through its hard work
and dedication. Our growth potential is the best part of our future. Our expansion plans into other markets focus
on broad penetration into Austin and Houston with our value proposition builder, Trophy Signature Homes. Since its
founding, Trophy   s share of our revenue has grown from less than 2% of the company   s revenue in 2019 to over 38%
in 2023. By itself, Trophy is now the 7th largest homebuilder in Dallas-Fort Worth and we expect over time that it will
win significant share in other markets. We are optimistic about Trophy   s future. We anticipate expanding investment
in our existing brands and markets while rapidly deploying capital to expand Trophy   s brand into new markets. Since
the availability and cost of capital continue to serve as significant obstacles for some builders and developers, our
investment grade balance sheet and experienced teams position us to continue to capture market share.
The success story of Green Brick, however, is about more than the meteoric growth of our Trophy brand. The heart
of Green Brick   s success lies in our strategic advantages in land and development, financial discipline in our strong
markets, and, most importantly, our people.
Markets matter. Dallas-Fort Worth and Atlanta, our two primary markets, continue to rank very high among inmigration destination cities and are among the largest housing markets in the nation. These markets benefit from
favorable demographic shifts and strong employment. Through years of work, our geographic footprint and our
philosophy of acquiring land in infill and infill-adjacent locations have assembled what we believe is one of the best
lot and land positions in the industry. 80% of our finished lots at the end of 2023 were in desirable infill and infill
adjacent locations. Approximately 83% of our lots were owned at the end of 2023. We mitigate risk and enhance
margin by maintaining low leverage at a low cost and purchasing top quality land based on conservative underwriting,
as opposed to carrying land off balance sheet and paying third-party developers a double-digit cost of capital. Our
25% ROE and 11.4% net-debt-to-total-capital ratio at the end of 2023 demonstrate that our decades of experience,
entitling and self-developing neighborhoods with low leverage produces industry leading risk adjusted returns.
Operationally, our team made great progress in reducing construction cycle times from over 8 months at the end of
2022 to 5.4 months at the end of 2023. In particular, Trophy   s cycle times were only 3.7 months at the end of 2023,
less than half the time as the end of 2022. This enabled us to improve our inventory turns and generate better returns
on capital. We are working diligently to further improve construction cycle times during 2024.
We recognize we could not have achieved these results without the contributions of many people. We wish to
express our gratitude for the continued support from thousands of homebuyers, our employees, trade partners,
lenders, and shareholders. We are optimistic that we are well-positioned to capitalize on the long-term housing
supply and demand fundamentals in our chosen markets, and we look forward to the opportunities and challenges
that lie ahead of us.
DAVID EINHORN
Chairman & Co-Founder
3
JAMES R. BRICKMAN
CEO & Co-Founder

Southgate Homes | The Reserve at Watters | Allen, TX
4



shareholder letter icon 3/18/2024 Letter Continued (Full PDF)
 

GRBK Stockholder/Shareholder Letter (Green Brick Partners, Inc.) | www.StockholderLetter.com
Copyright © 2023 - 2024, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.