GRBK - Earnings call transcript Q1 2020 | Green Brick Partners, Inc.

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Operator

Good afternoon, everyone, and welcome to Green Brick Partners' Earnings Call for the First Quarter ended March 31st, 2020 Following today's remarks, we will hold a question-and-answer session.

As a reminder, this call is being recorded and will be available for playback.

A slide show supporting today's presentation is available on Green Brick Partners' website at www.greenbrickpartners.com; go to Investors and Governance, then click on the option that says Reporting, and then scroll down the page until you see the First Quarter Investor Call Presentation.

The Company reminds you that during this conference call, it will make various forward-looking statements within the meaning of the Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including its financial and operational expectations for 2020 and the future.

Investors are cautioned that such forward-looking statements with respect to revenues, earnings, performance, strategies, including but not limited to the comments related to the anticipated impact of COVID-19 on our future operations, prospects and any other aspect of the business of Green Brick Partners are based on current expectations and are subject to risks and uncertainties.

Monday, cause expected or our in are which Commission. released could materially to press the that and the was those XXXX Securities annual from set on filings Company's factors most actual factors and outcomes results differ release, the recent Those risk XXth, quarterly described with May forth Exchange in and that duty are undertakes Brick no or update forward-looking Partners' during made statements the call. Green any

The can comments reconciliation other release our In in yesterday will presentation on issued and Legislation financial metrics. and the Brick these include the available of addition, the information G non-GAAP metrics regarding be earnings by website. required Company's Green the these that metrics found

Green Brickman. go I would now like to to CEO ahead Please Bricks' turn sir. over the Jim conference

James Brickman

I the everyone. our Rick is this of the Thanks hope With everybody Texas Dolson, President call Costello, healthy. and else our call. Hi, region. you. joining Thank safe me CFO Jed and finds for

a until mentioned, page, click everyone this at then do top First a down Reporting, web our operator and on that earnings of give option Investor greenbrickpartners.com; Investors I'll the page at then the and website Presentation. the found be presentation the click on Governance, our As you says can see the this. call accompanies on Quarter scroll that Call to second

COVID-XX, closed be quarter and all-time circumstances XXXX cause orders of million this absent we first XX%. home with record-breaking our of report celebration. EPS, basic a more high an up that a quarter new would typical for another I'm including; pleased record and to net Under $XXX.X yet backlog

we anticipate. economy a could will cautious to weeks about potential pandemic the come country the something of feel and than ago, confident of effects the the matter a now not our more most but as business, COVID-XX weeks was seasoned only on whole. of a the stop have remain even Americans, much in CEO We Seeing

continue best to of response that will the first the customers we change, implemented of evolve and COVID-XX interest staff, was conditions As reflect beginning in our to our March business.

of to Please X Slide flip presentation. your

We major markets. are in a brands eight with diversified four builder

diversification home low types from of $XXX,XXX. as ranges homes as Our wide a and includes array price

evaluate As that we efforts a the position pandemic, remain placed to continue the of positive us continue have our storm. consequences this to diversification to weather we in

been including While and our operations, an essential active. remained has industry have title of in all construction our homebuilding markets undoubtedly a and business designated has where mortgage we and services, impacted, been the participate XXX% as of sales

capacity social the to doing our work have have mid-March, of employees. been and remotely with the so Beginning stringent for been employees distancing guidelines remainder implemented

have response. On of outlined our Slide some X, ongoing we COVID-XX

improve development have reducing land demand. projects, positioning and can of idling lots has revised meet our of liquidity parts to our By and orders. buyer better business, strategy existing operations our while halting liquidity purchases land We new our entailed we into net on expansion new believe spend This spend lower very slowing effectively land, and reflect to strong markets maintain Houston. we like

offices tours, an sales our foot accessible tours, live in by private private from our areas the efforts. implementing remain appointments, traffic, and customer's directly that offering marketing report to expanded home. the self-guided orders, decline to virtual we fully strongest pleased the am I home at with In digital significant remedy operational stay for buyer's effort have

an over in traffic year we digital result, for April. of increase the saw a in year-over-year March, increase of XX% prior As and a XX%

sales since for impacts details the mid-March. on the Here and are cancelations

in Net down were sales from April XX% XXXX. April

of remaining. sales April for With already with the net first are XX weeks of three days of sales our XX% May, all over

for May XXXX. in In than higher May fact, running our sales are net XX%

each increasing gross with XXth, period six-week sales May week. our sales sales have improved the steadily and For both ending net

our the week week very by April sales since things And XXX% gone ending were in Xth, slow. up when first yesterday of have the net

March be But the double cancellation was April our XX.X% is XX.X%. rate to rate first QX cancellation last cancellation of in Our high consistently around the and for elevated our rate continue cancel two rate quarter versus average XX% of XX.X%. in normal with weeks now was almost April of

as Our and mortgage which closings. moving digital drive confines have operate conducting also our within social ventures over to and majority the title XX% distancing, meetings platforms of the included to of of continued has closings through

latest on our participate business identified Approximately the our recession-resistant as in QX building markets locations. where most been cities of we from X XX% Dallas some we the map specific of in began our in our these COVID-XX have our that and Slide impacted revenues are cities See in has discussion were data Dallas the country. the the which in operations communities of indicates located and how

seeing country Continuing Frisco, XX. top SmartAsset a included and named with Denton cities we of Indeed proof the recession most recently with Dallas from tour, are the in Plano report results Trophy have the three Arlington first in in and brand, our four our time as up Normandy move increase our Interestingly, move JENI brands. in brands, also some second sales Signature brand. and really higher time nice our CB up Southgate

wettest due to the to due economically conditions on delays not roll X. as Slide Atlanta worst Please performed has winter record. and to well

open Creek located of optimistic new including Most and development, are lots months. Johns where set neighborhoods lower supply, constrained and years. under like next Alpharetta lots AAA point suburbs less in Atlanta than to is our two the North six homes four with lot in However, price we are

the buyers nearly low large our our backlog in rate a on sales up buyer can our age-targeted Beach very North Coast, of XX% Vero that sales. homes resulted low once We considerably. will believe In and Eastern to affordable cancellation travel the Treasure has Florida, Florida of density pick purchase price resume our of deposits

of low strong Region interest first will Springs, installations, position land in due anticipate our Jed President military rates, with we time remain the margins. greater demand to consistently to Texas driven robust demand a speak economy Colorado now to and buyers. Lastly, gross by the detail in Dolson, our and home new very Jed?

Jed Dolson

market maps Burns Dallas have John metropolitan desirable of grades a to of as quality for Estate most of being through life. move Please designated they published subjective factors, an most and of has A proximity Real on Consulting an infrastructure X. of existence Based where of variety jobs such areas market. the affordable schools, quality submarkets Atlanta Jim. Slide F our Thanks, of and of

Brick have rated communities as We green Green communities The dots. in desirable. our preponderance of submarkets locations are the with of overlaid our most

our builders lot of positions that peers. our Dallas that will Atlanta, and high the to from demand strong in of inventory the market of areas able market COVID-XX we believe lot be the With most be our superior some our positioning In the crisis. will environment, current bear to we hopeful impact differentiating team key of are results

of we in will This position northern months. Atlanta, supply land a as we development lot in coming suburbs the will by Dallas is -- and us which shortages both slow strategic fix activity expect further be advantage for believe strengthened the as we

Moving from today. on XX% community XX to selling our to count which active XXXX QX grew communities of

time communities geared to open buyer. first more continue toward We

has this increased not at risk. on However, of affordability increase the cost been

unconsolidated mortgage is credit a A worthiness with XXX. buyer we the of will we risk our on of FICO score venture, of business. strength profile our Green XXX an markets score We fundings continue XX% of average closings average home The to our our fundamental a Based FICO QX our Bricks believe of saw where exceeding XXXX of mitigate operate. of

reduce flows strategically Green our land supply positive create Brick as is also we cash lot Our for uniquely positioned to spending.

lots builders. owned lots you are As finished these finished, see in for has ample on can simultaneously consistent we the or for percentage at supply land than above ability XX% X confident to past our years. Green more two XX% Brick of team or an our maintaining slower while Slide pipeline maintained still With down lot inventory nearly of owned a of

This translate lots as into model. land business strong possible cash will in positive future flow we a This not light in quarters supply homes. ready be would close of

the some homes. as also best land Brick permit industry We that close generate we will our to the believe margins position of in Green

Slide XX compares XXXX available presentation our data. of margins QX gross with our peer

our was was XXXX over our basis gross believe XXXX. XX.X%. company margin points QX well land the over quarter just has This points underwriting evidence pace We in prepared prudent conservative strong was sequentially basis and that this planning experienced strategy QX reported price to Our left that XXX is during manage and of are QX winning XXXX. a margin remainder and up up XXX the

in significant Green improvement the made the has over our Brick years. slides past product next few lines diversifying The two demonstrate

look Slide Let's at first XX.

XXXX. of mentioned the As GHO we Jim with brands offer Homes Trophy Homes eight unique Signature now in addition in XXXX and earlier,

GHO's lower by of sales with in $XX.X quarter. and affordable products targeted revenue family is QX The product single XXXX and from robust XXXX current growth average Trophy's Our $XX.X QX more highlighted to home affordable XX% their age Trophy's respectively. million and of million sell at the GHO price revenues of

of product industry of be This higher-than-average the share hopefully quarter profitability. since conditions. while gross will first the in a quarter all crucial decreased under and -- As improving, our and of preserving, this in the our ASP market diversification, result has X% improved economic maintaining first XXXX, current margins affordability

volumes experienced six in visually and which stable on Slide distinct homebuyer strong segment. demonstrates concentrating revenues by our we that one any QX of XX growth segments address XXXX. and have now revenue earnings not all sales grown provided We consumer

Our demonstrates XX% to year-over-year growth COVID-XX new orders prior the pandemic. the health markets our net in of

X%, up our down move-up and breaks townhome up up XXX%, down age first Second XXX%, living up follows; XX%, up entry-level time move-up XX%. suburban growth time XX%, The urban as targeted

the sales Our for $XXX,XXX homes orders price expectation terms grow closings. an size to and of sales those count is community in in under average entry-level with segment,

the rest a the entry-level level CB homes communities Trophy seven regard, of to are that combined Homes year and eight JENI up expected current open In calendar from XXXX, additional communities. during Signature entry

Rick will our results in more first discuss our annual detail. Next, quarter and Costello, CFO,

Rick Costello

to Thanks, to you us thank our joining today and related our XXXX highlights. XX financial results. Slide first Please Jed, financial review to quarter move for

broke was segments. in well orders This as XX.X% net versus rate Jed by average a per orders selling by XX.X% QX down increase as went on just some here of That's Net comparisons, XXXX community for XXXX metrics. a of increase of QX operational how are our through what or absorption For that quarter. function in communities. new the key increased a XX.X%

XX%. XX.X%, and for with up of Home with XX-months year-over-year home by up the XX% XX.X% increased under construction XX% deliveries basis by units on the sequentially. last unit's revenue value started up backlog home residential quarter. Year-over-year increased dollar are in The XX% by

our gross Jed sequentially and quarter-over-quarter, As was tied EPS up of of And adjusted points gross over and basis XXXX homebuilder EPS 'XX. last, of QX was margin XXX basis and QX up increase bottom our was XXX QX 'XX of line XXXX an important, points which points over XX% highlighted, XXX QX $X.XX, was over homebuilding all-time most margins record up basis QX of 'XX.

quarter, net $X.XX please impact EPS, note impairment been up million option of for importantly, XX% Company a of been cost contract of more that in EPS had for the which have future Company a the all-time and current for the by of reserves would communities, over recorded taxes. lot new QX QX Very for Without have than deposit abandonments/reserves, lot XX%, abandonments on XXXX. record $X.XX, $X.X these would

is to Now new a us. This XX. for please turn Slide chart

total in backlog that our to March by prior closing then year's our our of show volume units. backlog adding the and units measured growth in ending QX year-by-year total we XX plus comparing volume Here closing as

quarter So our of during that shows year's XX.X% this the to of units in closing this backlog close units last volume. scheduled represent plus XXXX close our calculation remainder

at have time can you strong how this year and consistently first in has -- further backlog both our quarter And improved been see as performance every up-trends. that's consistently

this prior as have So as XX% as a backlog end the XXXX position from in QX volume 'XX the year's at volume we or -- a in on being of having the our covered grown of year's the have books of XX% point result, of we year. of QX, where end in back a in of now to last

our year at reliance units in are volumes right strength This shows and low also We that our and and current and that the sell time. measure believe on markets indicates very decline. strong this well we prior we entering executing the market to Company's meet indicates build spec

quickest in JENI Now during performed quarter, Homes Trophy sales to been order Homes well last exceedingly weeks. both the and the in first COVID-XX prior the four and Signature the CB closures see particular, have to rebounds

a While Slide variable that XX cost sales the XX is of inventory strong notes our performance business. impact position, our clearly business on our demonstrates Slide

as line that, X-XX-XX has leverage down percentage lower almost you operating a the an past trended XX%, decline at flat, to in as SG&A of it improved all years, grey three revenue on months XX.X% we're the immediate the levels, Over a basis, that's has seen see adjustment can with the the fairly across but our can last a expenses. chart. see XX leverage. you SG&A from percentages, and in to It's revenue going XX.X% At down point however, of

In understanding the our cost in COVID-XX impacts of executed run a as business need cost and continue recognition future we as April. variable of as the much commencing a business, to possible reduction plan to

staff. we compensation between our this from ranging included to XX-Q, for noted our CEO, our and for in of X% XX% the remainder decreases cash reductions As XX% our salary XX% of for the for Board,

cost layoff an $XX.X an overall we reductions these basis. addition, In annualized represent total, of XX%. on In million implemented staff

We lead -- maintain drive maintain our and overhead organization, we gross our to us continue industry-leading will and elide necessary the which margins. allow to intend profitability compensation margins lean expect to if to and operating

Now please Slide to XX. turn

Here, an ability organization's we peers post to preparedness a thrive small in mid-cap COVID-XX and our world. our have measures recessionary terms critical versus of of in compared

measures. We the chart. XX let and know includes the top equal Green have Should you can our which the Slide why flip Appendix, measures of at of to these that weighting you four provided is Brick calculation down in

next are, incentives the economy can to or which against to well closing the here. already we Data may closings is the a profitability builder column again, beginning volumes Brick we margins discussed gross our units year's XX.X% Jed We've give occur as Green withstand is displayed slower gross X-XX-XX through high point starting we and Strong names margins already when of booked discussed backlog to which recover. very believe and how first That recessionary very strong unit of have levels. compared last which

times Also of is included with financial quarter priced our conservative is EBITDA, function first which levels of of combined lower interest X.X earnings lower and a coverage leverage great debt.

owned lots. Finally, we of the percentage include

this explain one. me Let

Green monetize As supply cash the tremendous of to on generate lots builder when ready balance flow stated close in sheet. future assets homes. gives Brick and we earlier, a a our positive the is quarters to ready these opportunity more owned positioned

is This less business factor a model. a for dynamic simply land light

and believe a ability of most measures these is that rankings more competitive Brick relative positioned has and better in the So in to environment. together put Green we than all its excel peers

look Slide much Finally XX we which since at you've pretty seen started doing presentations. these

coming business XXXX our the generate flow we to expect QX we model levels While free cash significant entered in liquidity. with also months, of

on XX, revolving maintained Green additional in credit. equivalents million and in $XXX of million of As March and cash $XX Brick capacity our XXXX, cash lines

revolving the March the the that late unsecured disruptions facility credit COVID-XX markets months sales credit our ended unprecedented the we Due to to and economic pandemic the rising during stalled from and in XX. drew amount March, three of full

typical cash than hedge generated the the industry against flows balance and free uncertainty in operations. bit augment maintain going to a higher our We cash to from intend forward

Our net always continue this as which in in chart, limiting capital profitability. one of lowest it the to shown while industry the Green positions debt preserving remains has been, to Brick as risk ratio

I'll now back to Q&A, Jim? turn things call opening will prior up call our who part the of up wrap to for the Jim over

James Brickman

has with and of that uptick seen uncertainty ever combination have business veterans team that historically a approach believe sales risk-adjusted management our our successfully business business COVID-XX the while returns. of continue the the allow conduct conducting pandemic, delivered consistent in week in prudent and during we remains Okay. to navigated Rick. will to that the of In with cycles measures by manner significant closing, we superior us Thanks, there evolving has our industry week response reality a

our visibility backlog, into we decent of record have a Because QX.

the to we to sell Our as the of many the and strategic and culture we is our and approach up What job we backlog changes. By into require leverage, won't to get possible will of continue our that we time and for to XXXX. through running values is have COVID-XX, as which have adapted rest homes of home. changed, XXXX conservative lot challenges call build however, the to a financial disciplined

the call to back the Operator? over turn now operator. I'll

Operator

[Operator from Michael question of line Your the Rehaut JPMorgan. Instructions] first from comes

is line Your open.

Unidentified Analyst

on is Hi for Mike. guys. This Maggie

gross First, very I reported wanted to strong quarter. ask on Obviously margins margins. your the in first

in you strong those confidence look you -- As the seeing year, the what as you could if you're rest incentive terms was into maybe XQ year of of can and you degree wondering was the progresses? of about continue wondering if levels to could I deliver margins and that also I yes, you talk

James Brickman

first the in. with start Jed I'll chime can and part

increased week the we moderate that those of May, only at less a of first than sales sales percent. the experienced incentives, achieved with Looking in increase we

-- are lot markets, we of homes buyers the not compression. low at existing of really of are the this margin levels been our because So not intelligent point very very it's surprising buyers and seeing Jed? of a but very anyway, in really, all

Jed Dolson

really Yes, I to anything have don't add.

Unidentified Analyst

thanks. have in controlling to about talked believe the in option how in increase then I Okay, the And you've past Homes August your ownership. ownership you Challenger to second,

environment you're that talk wondering thinking you was opportunity. plans the about or how any about I So how current has could there changed if

James Brickman

XX% at way of us Challenger just done -- as has CEO Brian is we high that it running for his lose because Homes; he XX% any investor. XX% business well have the Brian want on as And Hennessy, business, his right for one we or well to go we been President as as a ever evaluated. capital already where us fantastic just we've simple being all, to return first really control about that unbelievable Yes, now of is been -- and not and his reason, Bahr basically, did a an to partner is from just with and left would Division job Tom

and just are going partner. delighted a XX% partner being maintain to be owner a XX% with to and him -- to wants So, and Brian just so we're maintain we ownership ownership

Unidentified Analyst

Okay, thank you.

James Brickman

to they on Denver. expand looking third into one other largest the toward north either very weren't are or rankings looking at, at cautiously into said cautious sites But market the are is, the thing Colorado is builder Springs of that in depending we markets a extends second Challenger now. they right Denver we some and that And quarterly expanding

Unidentified Analyst

Got it.

more and Trophy Okay, on quickly. one

you've Houston for limiting to you You of outside land the not but Trophy's is has has expand kind the being, an within development, of thinking obvious and market? spend situation that the about still time you're forward, evaluate decided current how that into said I and the as situation mean change Dallas -- look expansion that the you'd opportunity changed

James Brickman

oil made that Houston. internally, if because mid-March, investment Yes, I'll February the address land we in prices we no of just announce because late really to not were until before you closely, made lots, Really, we internally and exit, that Houston our into in decision etc. COVID-XX, expand didn't watching

we why Jed, anytime Houston Houston. don't you entering with soon. monitoring And we're Trophy where So don't be are Dallas. expect to But talk we in about

Jed Dolson

growing still we're in Dallas. Trophy Yes,

great those We we've positions, signed land up. that have previously lot of

to have deposits those get money if to been based they're has We're track So opportunities option those record. that deliver recent lots when our already on excited spent.

operator. underneath operator, land feel and So that team top a have top top like we positions, we

Trophy. So very on we're bullish

Operator

BTIG. next Your comes Instructions] Reichardt Carl from the of [Operator from question line

open. is line Your

Carl Reichardt

for a you. had couple I

clean-up. a charges can me Rick, you tell like markets. just walkaway what where the First, option were

Rick Costello

without yet more what They just started basically and momentum wanted communities was we competition Dallas the presence. sales not They were face, that had that kind or all to not felt any of up we in were market. the

Carl Reichardt

connected And that's question. to then Okay, my makes just -- sense. next

you've been think count to basis look at environment. for you, growing would you the fairly about let's of. say, right Is has this when rapidly, So at, new closed we out sales which to try given the current replace community at communities that way

rest bleed of count how the for of sort sort your over number of -- year? flat guess looking do your opening have the changed attempt down, your community plans that you of as balance of you're neighborhoods think, community or asking keep I So the I'm would you 'XX? to community out

James Brickman

it. Carl that's the best to way very is fluid, describe I think

to I gosh, be last I we If said night April, you going too would shrunk a aggressive. in we were have should talked got really and we would more and report and to my say, me little much shrink I sales have bit would

growing really I be it's So going to think slightly -- between we're those, probably going to to stable. be

Carl Reichardt

a been negative Okay, then And modestly Jim. growing time the company, of flow as historically thank negative. most you operating you've builder, cash last, growing

next of trend the right rest have the the or importance liquidity see flow positive. given OCF? are 'XX OCF OCF year? I the being of books, cushion. a cash a think loaded you being you the positive end about lots sort the of thinking sort the it Is about quarters last are seasonal sort positive more was time think time Again, I to given for environment, on few to of to were you the where given the of you're How for remember for going back new we you of

James Brickman

new after obviously can And not Well, of XXXX, quarter, large going lot I are as for because many over to that, July. huge took increasing second cash going sales high bulge it's but or making that going will with backlog to free think we of we our that we had take sales of It's then going and off is cash goal as at to place June some we flow a in such free home backlog a produce that flows trade we place. are margin. the into because backlog see replace to -- cash flow

July. of fourth if a go quarters. houses will it generally and our considerably and all the we think predict in I how be going we wouldn't lenders third -- is June don't cash -- our just that I've and met why of think much only the to is we flow bunch So down. it with whole down in with our And but sold that going reason

Rick Costello

our And go Carl, and -- down. cash to go going down, positioned flow is is when he our it's to debt be saying up is

Carl Reichardt

my up And in part the then, I that your I part of be to last orders,, think you you and this the is model, as key just -- question really one that the -- look key Jim, at mentioned of so our that's have [are and to May is so sales relative which XX%] there far your quite the consumer net year-on-year, seems trending in have? the you a are how that Is think, spec can approaching difference you remarkable. on to-be-builds how rates

James Brickman

Yes, because, it's unique we first did mentioned all, we've the we decrease. our -- as our been we're of interesting And in our same building specs really really call, on of really many that our back seen peers thing. our spec not and cut

when of And to And want at talk jobs do directing lot buyer existing out homes if a inventory. you we're want neighborhood, not now into seeing? comes spec build Trophy home, Jed, want seeing they're because kind we're about and what the that. these a a and to typically, they them right So home of seeing a people they're

Jed Dolson

Yes.

people primarily but of signing for because spec first of shortage just So, are lot inventory up of ground, a the to-be-builds, on choice. their specs the are

James Brickman

score the home one board a across is doing that want did and going start change buyer then we're that cancellation build other jobs, the up all we other to don't the most and when you of because as has -- the to we much that on end probably level vulnerable lowest FICO we things entry Carl, buyer mean continue deposits, customer with have things and pretty something Trophy even increased and a from or else. our builders, deposits, lot our I our of

ours, our very noticed kept So impacted really have deposits velocity. and sales it their very, we've our low raised lot that hasn't have we peers and

Carl Reichardt

That's really interesting.

all for again well Okay, the all guys, it. Best thanks of right, detail. luck. Appreciate

Operator

question the comes Bill next Tieton line of Capital. from from Dezellem Your

open. is line Your

Bill Dezellem

thank Yes, you.

those actually same with both we in XX% trends up XX%, are down hear the to May that after was to sales of the month all. first I'd a correctly like up year Did So pick sales April comparing May-to-date ago. of

James Brickman

year April the and of Yes, April to ago. May you're to comparing a of May year-ago

you the So last May of And take in of April to exceedingly are low it compared -- the last down. May we up XX% if compare XX to yes, XX%. in to and we first down days numbers were but year, year rate

and So it enough cancellation seen rate And net up sales terms we've seen two up. -- of, have higher. the we've don't But gosh, was pause really last took a sales the every The maybe there. last go that specs. have week, just remarkable pretty the gross go weeks two in single been we

So actually as among product well. lines and it's been -- multiple

Bill Dezellem

there. that that, low Can everyone they so from kind of concept little insights your some Does social any to have human other consumer buy space why -- to what's staying view has of have you space, away with deciding you or they droves just it qualitative is more and don't need out to of kill simply off like home? while playing the to to coming like share homes do more just wanting you. So is each as in Or interest rates? is at they want mean can this a because I this do neighbors? dwellers -- seems have a home from It distancing to with apartment the

James Brickman

Jed? at, and start $XXX,XXX, week it are a was to clearly think low before, product, price Jed I wasn't can going very I'm looked neighborhood finish at not But $XXX,XXX, was can that we and our it point entry-level the week, had and this seeing, chime on we Trophy, Rick in. we

Jed Dolson

$XXX,XXX.

James Brickman

B-minus to those people And of the an a that leaving were get buyers wanted preponderance out of apartment apartment house. and own

pond and and how continue think out no we have just There buyer many we're what trying is can. to as is on to that? are lifestyle that an We're about that monitoring that see we're them XXX,XXX are right and evaluating nearly now looks your like as is figure closely how now. going as attractive longer incremental in what really buyers decided really apartment that to we what comments We Dallas. attractive Jed, are deep that units really doing

Jed Dolson

Yes.

pipeline. mortgage -- started of has we've our and we But ago, shift seeing weeks were four continued $XXX,XXX. or homes out up filling woodwork. to single-family really well, the couple We've They the weeks past or three in of of stay the of renters either strong. homes over seen that they come starting that apartments quite think I were sold a few also renters

are So combination all of I mentioned people little kind you the a more space. a factors think it's of bit that needing

James Brickman

but home we The I thought which actually efficiently evaluate and in service our seeing never on seeing from would a same person accounting to particularly We're working them our our operate thing. are lot we're other doing that business, business own this, the this, evaluating in we're basis we're trying in businesses, is law of even some person do the thing is people, allow type by going I on other more firm a the to business. --

able living continue do be trend, common forward. to separate a think in going area, in a can't And I a that a is living in seeing will to we're have you really house something office that home mid-rise and four-storey home

Bill Dezellem

And Jim. please. question Thank additional then you, one

that the maybe crossed So lot probably you through was and/or applicable basically anticipate you seen -- or already this declining? may strength than prices lot something more any today, have that land in And a April the industry is of COVID the early but it is implying is signs recent Valley? question have through that housing this

James Brickman

than sure. community. another typically by On one master-plan Almost owners. all are a held very master-plan seeing strong communities large does for thing any better downturn, community we're Well

reducing prices can. seller they as want extending -- They many not We're lot sales making purchases, master we're not community to things. but not So lot seeing have make seeing on been or cooperative they price. as lot other discounts plan that and obviously,

We been land. buying this years both been we've always for in market I think XX Dallas over -- have, in I've

there Our years, builder land. in than XX Atlanta and XXXX been than has has been XX Bill in more Colorado for Handler more Bahr has years, since been Brian Springs buying there

first there this of and out we We most from land we're think not see seeing really distress time. at a lot sellers deals

Jed Dolson

little We're on new because of uncertainty. seeing terms a the bit deals softer

in softer speak April? have did not down. for Are May? are a where -- seeing uncertainty are March So we sales but going our like bit we like to far sorry we going in prices numbers think sell to that in we little sell terms so going or we're I --

Bill Dezellem

Thank all. you

Operator

further call. There today’s are questions. conference no concludes This

You may disconnect. now

Green Brick Partners (GRBK) 12 May 202020 Q1 Earnings call transcript