- Earnings call transcript Q3 2022

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Operator

Good day and welcome to Century Communities Third Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Tyler Langton, Senior VP of Investor Relations. ahead. go Please

Tyler Langton

you earnings Thank XXXX. us for today Good call for for Communities conference of the Century afternoon. joining third quarter

Before based this described subject of to uncertainties Report results in in differ would under actual certain the or cause by may and those constitute of and implied on I XXXX on are forward-looking from risks remind These the could supplemented and current as call that can our Certain statements. statements Annual risks that expectations XX-K statements. the company's everyone beliefs are Factors historical like information the SEC materially number statements other management's found are and Form to call heading to these Risk during a forward-looking be filings. uncertainties not on based made begins, and

and during are The are any filings made at company available no SEC forward-looking duty undertakes www.centurycommunities.com. Our our update this to www.sec.gov website at that call. statements on

certain Executive the Officer. to should and Dale Financial after accordance non-GAAP of not Co-Chief information the for in measures is call Officer; financial this Management on President; GAAP. have isolation information this company's discussed Francescon, Executive Chief that intended any call. today and Messenger, the Chairman be The questions considered as conference Officer a not presentation available in be call, Francescon, Rob are presented get you or David did answered. substitute Hosting Additionally, and Co-Chief will with be will financial

I will to call will open the today's for Dale. we With over line-up Following the prepared that, questions. turn remarks,

Dale Francescon

and the pre-tax XX%, income year net our quarter. XX%, increases in third and We're were share all this Net everyone. of earnings of quarter pre-tax prior strong achieved per performance and million respectively million, including The Thank you, and from per represented levels quarter, records of Tyler $X.XX. and afternoon, earnings of $XXX very income share income. $XXX income, XX% diluted pleased good with

a XX% quarter Our third EBITDA third another and came record. increase quarter year-over-year $XXX million, at in

tragic During On $XXX,XXX, $X.X Texas, our by a first for express homes segments. our the increased and to additional our due by to deepest XX% With the our event. hurricane availability Ian, X% deliveries in to Complete chain, Hurricane quarter basis, records. third sympathies impacts led to average increased and Southeast, were expect and foremost quarter, people Southeast we labor to revenues, a sales by impact delivered communities and total while the both we Florida had throughout want our we the this price would affected X,XXX in year-over-year regions. and billion Century regards our fourth and municipalities, quarter supply the all in that modest disruptions on quarter, by The deliveries to

of consisted the as uncertainty this summer sidelines. trend homebuyers and the buying pronounced period X,XXX increases declined economic X,XXX at quarter-end simply summer year the our at with home typically weakness rapid The many valued for mortgage homes overall kept year is the Net the slowest of this potential regions sold on homes to all we took backlog believe $X.X billion. especially as and was off. season Our new rates homebuyers in contracts across many

pace the new with quarter, trends throughout continuing Regarding increased month October. quarter, improvement in net into the each sales this contracts in

this experienced months. have sales activity we we last six was in strongest the the weekend over fact, In seen

these they interest are the will market seeing believe to changes. in However, will pressured rates. volatility remain we as and be to stabilize, the expect to that adjust home buyers sales favorable underlying we demographics as continue We rates by return

and and close to a rate at little beginning mortgage to XXXX the levels a of in look to interest Homebuyers have move-in. rates from that from their a a the is for of continue year, completion homes X% lock clearly are available significant a our While over number increase to impacted fact not closer are the for averaged XXXXs. order in in mortgage to homes XXXX X% continuing large to sales near-term we X.X% did the be that rates, simply by

more as to Going differs we in start price. the homes our by and improvement match sales forward, to backlog [Technical until of efforts on amount up our our Difficulty] plan sales is not basis see market. of type and by in demand. incentive our sustainable continue community starts increased XXX on building about with expected third to homes average sales, significant focus completions closed with quarter a The near-term points and

We have upgrades to locks, buyers be options contracts. the and rate seen and mortgage door getting in and discounts on effective signing rate in buydowns,

are base existing opening market the when typically are prices We not but our communities, making sure in reducing with competitive are prices communities. new

and adjusted quarter. gross third the focus us XX% margins of gross fundamentals Our solid on operational margins XX.X% to enabled of in produce

gross have incentives As from what characterized of higher decline. the driver high with unsustainably expected, levels our as the we margins largest eased being

home possibly comments. improved half even given producing in and are in that to will the expect we The affordable we more more fall, XXXX. over to we continuing higher meaningfully incentives are which while the are to think year, input will Looking to half margins focused next of we as our now that margins over just more return margins of That than normalized were they on beginning the of fact quarters, are the out homes do our costs fully are ease. on homes, said, homebuilding his in Rob now are the costs starting starts couple correct as new first second detail seeing

move can up are a homebuyers to buyer navigate to delivering and lower buying number By purchase. pricing current headwinds potential affordable spectrum, given emphasis more end homes inherent homebuyers the the in as a the the to to on well-positioned and flexibility are of largest need of offering the our We discretionary making appeal at model. we compared the out of that homes our

also based to spec conditions. Our starts adjust model and to market quickly in react us allows changes

potentially downturn opportunities the company. emerged given profitable assets financial ultimately we could a as and While acquired and Presidents. this stronger at is great during Century believe patient remained create it year prices attractive crisis. We every We're still cyclical for early, past

Our our results them our over third a I'll every to we going and results detail. for are our quarter due country. now the customers talented and of commitment, forward our turn their plans continue the dedication, support the across providing and operating to to discuss more contributions. home teams dream thank for in Rob of to call resilience They mission

Rob Francescon

good and everyone. Dale, afternoon, you, Thank

this in mentioned, well believe the the As flexibility delivering higher team rate quarter environment. and and homes moving performed forward on model priced we Century’s of company interest this positions our affordably positively operating Dale focus

loans continue and a scores have on XXX FICO homebuyers based mortgage average the of profile. by Our company financial Century healthy Communities to respective in third XXX had our Century and homebuyers originated Complete quarter.

within buyers XX% target home third limits, potential We with have homes of coming of from market. sales widest allowing us any the approximately affordable new a continue to quarter to range position in priced given the category strong below FHA

walk market. contracts Cancellations buyers rates we we from to and saw the third from to increase overall opting financing experienced the both cancellation our in in XX%. expected, away in As given the quarter an related were uncertainty

we XX%. quarter. our the the At the across not declined rates significant end progressed as to second compared quarter, see at September increase plus and the unsold our was ending cancellation did end the homes quarter XX completed of Our a in markets of

homes have seen home industry inventories as new levels, whole, below remain low very [ph] meaningful of averages. while completed a the inventories historic For [off] increases percentage absolute

are we rates over and municipal delays, very existing by QX, shortened The past to quarter-over-quarter chain to slowly second that in issues, constrained they extremely secured supply though going utility Additionally, shortages saw the will getting construction On basis several will walk buyers we challenged our time years. interest home trade reluctant a quarter. following from the industry in as away think the pressures attractive the be homebuilding better. sales and trend continues cycle forward be these be

costs direct we to which in quarter-over-quarter recently. in in categories improvements our lumber costs, more and on mid-single-digit range started with from lower trusses, improvements declined see The the were seeing QX. also these other in the but are basis of have majority We a quarter

on virtually categories fact, September, cost showed a level. consolidated month-over-month every basis in a a In decline at

to trends expect the a starts. market. Compared continue to longer still increasingly supply adjust. effects months of prices market construction take was the Several seller's as forward, of land ago, labor, these the would in slowing we chain materials for and feels to Looking more can housing land the cost

roughly with lot the XX,XXX XXXX land quarter with from on the spend, down builders and owned the a and private However, public XX% total We roughly controlled to lots. this owned back change. pulling approximately with ended quarter controlled their XX,XXX and and second XX% is lots now starting of pipeline level both

and away stringent generally Our investment own also is end lots disciplined put deliveries. price. Since deals years toward approach steady approximately we recently consistent of in annual relatively no This our step were under with spend, standards. to have higher since more three land meet of last past we year continue have that deals a from These control lots and remained the years. longer we that provide

land reducing at delay year of land while our away in of that minimal period. approximately commitments XXX, ago were only from On costs openings previous and total up strategy, our walk community be potential we community our we quarter we earnings if the stated deals quarter-end at spend. second Century's would million, from market and appropriate. count conditions stood total mindful and XXX to these in XXX local able Given call, incur the and acquisition meaningfully $X quarter

and we opening Given the this communities. market in deliberately the the just did that quarter, slowed of new weakness

this that practice to our communities open than the fourth will year-end we guidance prudent XXX have communities. XXX previous continue at to expect during quarter such fewer We of

turn this remain strong are quarter discuss our the are we with future. over Dave detail. to confident well-positioned generating pleased to financial call financial continue our now operating and We results and into I'll results more to the in performance

David Messenger

Thank you, Rob.

year to XXXX, $XXX.X home increased This while driven year-over-year increase XX% of was XX% ago $XXX compared a XX% In deliveries a per from an our a increased earnings in quarter million, third in the across levels. billion, revenues the our grew $X.XX year XX% of to to third year-over-year new XXX,XXX improvement share period. of $X.X Home income During were net from the increase diluted sales by income price revenues million, Pretax in sales $X.XX million X% year-over-year X,XXX. average XX%. footprint quarter, increase. increase, was year-over-year for X,XXX, ago $XXX.X contracts quarter of third the to net and

prior the was year-over-year. decreased year, margin SG&A period last our compared was this increase to the rates In of year. backlog was same due quarter. year increased primarily at mentioned, to X.X% prior prices valued of homes percentage billion, was in quarter. in year on sales quarter, third the decline homebuyers. previously quarter, consistent the interest to to prior of compared Pre-tax impact XX%, a was sharp XX.X% homes XX.X%, X.X% Homebuilding compared prior our in X,XXX Dale revenue X% $X.X third the XX%, gross the Versus by the backlog income with adjusted margin had for margin to home XX.X% gross quarter-end year. while average As as percent in XX% potential homebuilding and the the the

fixed in order have levels in steps our to sales, costs. Given taken we home slowdown to the our staffing reduce adjust

the at incur losses XXL assets $X beginning million about of disposition expenses We expect staff X credits. on the primarily $X consulting approximately related our was October, remainder, Specifically, reduced related the XX% costs. of quarter, of from of with write-off and the Federal of to incurred to severance million million expenses feasibility expenses, other from to the tax deposits, and approximately by close we

pretax the XX% income, XX.X in In driven year the During quarter, quarter, fewer million in revenues, contributed markets Federal was last The compared period million the Act to prior services due the building of pretax quarter. to energy million the compared financial to year. efficient compared originations, income, to signed generated year the loans rate tax under to The the the margins and XXL decrease prior XXXX. at into $X.X XX.X for secondary compared year primarily third was prior in August. to versus XX.X% new quarter. Reduction enacted decrease compared in was was year which by extension credit normalized our the the Business XXXX, of loan tax million the prior this of XX.X third year captured in and in homes XX%, Inflation closings

$XX.XX cash share of During current million in we leaving X,XXX invested stock price maintained of repurchasing of our shares million an repurchase share per $XX.X quarter, dividend average our at for available common shares the under quarterly X.X $X.XX and approximately per authorization.

reminder, in X.X of share Combined, we million share these million count the this of have our As invested a approximately shares year, XX.X repurchases by half in X%. first our reduced stock. common repurchasing

Our homebuilding XXXX. the ratio of was to of XX.X% compared end debt-to-capital XX.X% quarter-end, quarter second of as at the

year-over-year several debt-to-net in total $X.X our construction. ratio and net XX.X%, quarter the acquisitions, sales to in WIP XX.X%. already decrease We and with expect capital equity, was increase to Our strong we compared ended as a on position, our second billion levels our XX% ratio quarters spending a continue over including with our net would as of liquidity. under debt homebuilding We starts million reduce quarter our match the next homes inventory homebuilding deliver stockholders XXXX limit $XXX we to land financial

equity on and in return which on above the remained XX%. at the our near equity with fifth ago was quarter represented top year the return consecutive of in industry also of quarter the we Our a generated XX.X%, excess XX.X%

slowdown questions. balance navigate sheet up our reducing activity, We ample this sales line industry-wide homes continue positions home that, to open strong a us With delivery I'll full-year ended market to billion. cycle. are with in well the quarter liquidity, current the which and XX,XXX to we to Operator? for continued to guidance billion to the $X.X Given revenues current and $X.X XX,XXX home

Operator

The question first from Morgan. today ahead. Instructions] Mike with JP Please Rehaut comes go [Operator

Doug Wardlaw

watch past Doug have what seen [of wanted see to more any, and guys. on bit I this on Hi. a get start into you your potential quarter. do a And throughout know, you preparing afternoon, guys the for list, to Good need Wardlaw for impairment] Mike. just maybe your and if what put little insight impairments guys to for community [ph]? you process

David Messenger

it's get margins as profits all Hey, it. start quarter turn margins on terms this we a out make watch to are, to are are some If that what at review flows and Right that we're entire to or We trying of wide impairments. or lifecycle breakeven then what current the of any seeing on be every range go forecasted cash a it. We us is of quarter, third looking sure zero not still create record the be going assets the in our assumptions, look generating sales communities of Dave. those future we close our we that we into list expect obviously of of now, to the point, of assumptions occurring. We're to backlog watch to those negative, put it list. did at

this quarterly in economy where current we review feel of continue them have are, state right about properties our our now, as so change. as to basis, what it we we'll to and And good the are, where a communities continues

Doug Wardlaw

earlier. know Great. a on it bit I you little touched And

with do of to changes, incentives Just And adapt but are moving of there? strategies the and you moving from what an rest you you're for to as community different year the community, going obviously, XXXX? maybe environment see into seeing moving in forward, terms incentives where

David Messenger

differs sub-division sell and between those at seeing, a we're to they're and the cycle. bit incentives XX% complete price will to Generally, overall, first. Well, prepared construction the our but focus house the as said currently by they When we the we encourage is be homes current incentive look on is, remarks, on on our X% move through sales. larger home in homes completion, completing that selling by averaging and and concessions market, that to the as obviously our closer

Doug Wardlaw

Thank Great. Very you. helpful.

Operator

from McCanless comes question with go next Please The Wedbush Jay Securities. ahead.

Jay McCanless

aggressive wanting Hey, my cash and little afternoon, the question some try there flow? were more more I a really what good to first of everyone. talking you in older being the cut I for to reason where guess communities, not about drive pricing not some guess, was

David Messenger

Well, we're not we're is, adjusting it's really what base no, saying prices.

avoid we're near creates trying but prices challenges. is sell gets community of completion, going in a house, adjusting a that to to home a what variety doing As that certainly we're base

side, discount each in we're will the community on in community particularly trying house, that repricing the price to So, home. where avoid house. for the price base the have But options the of we

Jay McCanless

Okay. to reprice not and mean go I do price, the as of think base in contributed orders you to as have they change because the only that the want to being were much to backlog? in down didn't go just and but some you presumably have in quarter

David Messenger

and had either price had go we sales were, adjust at No. big completing. the to where backlog just our with what had quarter we this the into was of our one I but to mean, limitations on be current cases, consistent to what we or is we incentives sales certain had

As we homes can discount look to QX more closed. we into houses in And with then a remain we'll had to have we have those point expect and QX, unsold, as completing we they in sold that QX. than them where

Jay McCanless

Yes. And that my cancellations, question. give next October around you traffic us etcetera? Any can actually color was trends,

David Messenger

weekend expect And pace When on really As in October. getting cancellations saw had improvement cancellations they're prepared homes we would out remarks, really number, is homes. the the see, those move on for to in best necessary those our absolute in again really driven available market by down we're look we certainly that completions. we six circumstances, buyers to in said that's wants is everybody months. know discount that actually over with the that prepared they to whatever sure yield can. because our have our near best an are know, are that, you at you we term our make but And But that sales of in down the of and traffic, there's terms we've that, last in an still we traffic the to what from normally more

And part so, of…

Dale Francescon

So that's for the last months? four

David Messenger

those And of the And that, right. backlog. if position – that as or homes the on we that part certainly our homebuyers changing put because we'll we to on then be of think we're they're consistent close in don't on so home, weed can changing through basis, That's market. we the their circumstances, able going back a have rates we the a to out

driven that's as in cancellations what mean And it sure so, clean is as backlog we of making our possibly certain amount well that I can a is have as be.

Jay McCanless

other And, of at rate sorry, the backlog have type third you of on the one question. percentage some did lock? current What quarter end incentive either financing of or

Dale Francescon

we terms Hey, have quarter, rate XX%, XX% percentage as work that the of first rate of we to in it's would way quarters Jay. is couple I of a is the locked. that proceed lock seen the then higher that have locks, range we on that past the rate throughout same and in up. progress say way it continues And the trending month

really so, and the into until third see November. second December, being rate months October won't and And get November, locked get we we

Jay McCanless

in. great. Thanks. back Okay, jump I'll

Operator

[Operator go next question Instructions] with The Please comes from & Associates. Ratner Zelman ahead. Alan

Alan Ratner

Thanks Hey, here. my questions taking guys. Good afternoon. for

a comments are second talking at if the about. pretty love in to the little same the be back with the quarter counter because I time to to expected of the what sales the time, in to I'd your more seems lot on builders to think pace, sequential it's at you hear consistent First, on orders other your improvement for quarter. through the quarter July, a just a bit comments to drill bit be third because And think that surprising little frankly I

came that. well obviously So, it below in

improved guidance] improvement so I'm expected didn't gave there out the have the to just that versus What it, to [loose fact cancellations? resulted So, quarter. the figure the completed that you falling you inventory back to you or you [ph] with anticipated the what trying order be the in July? back pace much them the between July? it was more I'm disconnect orders the in trying below square through in Was that

David Messenger

more was under combination The rates anticipated. had completing much interest spike of higher we Certainly, a than the those of had to progressed, contract. more more quarter our homes to I all as incentives things, And with to we Alan. we more and think cancellation we and quickly. aggressive put continuing were got regard more were it's than homes rate anticipated

we And so, hasn't that function get to completing, really get the homes completion, aggressive. as as incentive we've it said, got a we more as we're homes more if had near going aggressive it's more of on sold. And

Alan Ratner

Okay. for that. commentary appreciate Thanks the I there. additional

earlier to gross interpreting you margin correctly. want your sure I'm I comments make about made Second,

comment over be I kind industry low gross an think kind in near-term margin. that of guessing of the margin correction of XXs. kind relative you others in is we consider gross would that, in made to I'm expect And you a the what something, of actually a the and normal to,

next near-term in margins of just kind So, that back am range does somewhere you'll of in of that actually I overshoot mean think the and then settle half will out comment? in misreading kind downside the or ultimately that you low got to year the XX

David Messenger

think I correct. No, that's

right start we have hit the and a have work we pricing now that backlog really next in the have better better homes half that and may that that QX the the of that starting we or end low have as with we're of QX rest seeing cost industry looking just think with couple are them. Dale we're to the X% completing that XX% through then up range being a I now structure homes new with margin range more just back we're that quarters incentives the with we you overshooting closing, as that of what and just as XX% mentioned, a into in on for to backlog associated normalized construction sales is, year

Alan Ratner

in more if just helpful, could one here. Okay. That's I Dave. And squeeze then

just rise that this the ago I'm reduction when guessing that's were probably has community off from option ability at walkways, a the trimmed a to should structure? on talk well of year, have table bit the back about point, quite headcount XX%, little the count a I'm the lot you few stabilize? count anticipating to you about we next demand if Your that quarters the guessing bit might the community cost as new impact does think ramp How overhead reduction but and that can count as SG&A,

David Messenger

Yes.

community So, and know, here, about I things staffing. think, count you thinking the two

side, the the reductions that make minimal did be early we On There'll comes in QX. October. staffing a impact in through

You XX% of more costs benefit year. quarter, that look in of as of the about at costs some of we were really take see that the number. our had additional But next third I SG&A, fixed. We're to looking out

Our absolute on a has we'll XXXX basis, that through on an was that cost being in improvements make higher fixed offset quarters closings, basis by been on into SG&A and commissions to four we dollar be we rolling as structure. expect on some lowest go able obviously some

have a As on at community balance we lot possibility and some our already we're to continue the growth, of sheet. look we at we open communities count, have new looking that opening that the

starting and – we've are quarters books. we that ago, not on we said, communities our we communities deliberately As those opening two begun have

so, new or think rates possibility we that see the still mortgage have we'll is year, there's have the to like, homebuyers plays next how could possibility interest rates out people. and market what wait but not if for stabilize, open we the we growth communities And whether the are, demand return, how

Alan Ratner

before. the appreciate lot a color guys. Happy speak Thanks New holidays don't we I Year there. and if

David Messenger

you. Thank

Operator

Alex Please Housing Center. from Barron go comes question ahead. Research with next The

Alex Barron

are words, do a bit for are taking I I I just disconnect where around other the of to buyer big the that were about focus a potential just making the comments the it get you a that? home, you You price. how how Hi, houses, guess In a of to matter thinking that know, what guys. about there's little trying competition know, wanted decision how you you of a question. guys rest out? know, to is thinking guess finding trying sense about between price a my that. just where, and I'm willing you Yes. to the find doing clearing of process is or, are discounting market if you Thanks with can afford

David Messenger

market, to Well, not of It level. strong it whether is as the really down the individual market strong. down or regardless to subdivision comes the comes

And go there's so, look factors a it, of at in. lot we when that

competition mentioned, is you As one.

our one is, appraisals have their in of we community. with we sales backlog. And be lot going that hesitant subdivision backlog, of backlog and would the homes Another to how many have are. what we impact that then a completions in that or timing to on anything if Where sit more we're new the do our

it's community. and completing, we're then what we'd at make decisions, like is situation basis think individual case that case by really do it a to most it home general, that a truly down is to in that off So, – makes our is look we those particular if philosophy And as but I books. our going each the sense in particular and home

Alex Barron

Thanks. of and so lock time since lot costs issues more because direction supply chain Difficulty] the And sense of builders at last kind starting then and the started, I the I in in Okay, great. a in [Technical of the think to specs makes forth. it shifted think

process that slowed, shifted. if just has has thought curious market I'm the your Now

that hand, is that one close the On to can having they can some attractive in say rates. XX builders in interest XX days lock to because specs buyers

well, hand, discounted the happen. you if guess, competitors as kind to too mechanism it have many of you On like forces I in know, other this

I'm inventory curious starts thinking managing So, how spec just and and that? guys about are you

David Messenger

Yes.

our on pulled starts. back have we So,

definitely and matching calls, I we had had probably on know our last sales. quarter I ago begun our that mentioned we quarters two our think start with

of starts. the the down our pulled quarters, have sales really on we last so And as couple have back come

over we you're that can that have come we as our our we homes the you pretty inventories to deliver that significantly. so, see quarters under in have see the homes construction, the and couple And next of going down backlog,

able think enough too what not that community meet to now looking ahead into of a a we've be far many with going problem we're specs So, trying we got where that's are we're I starting to position that prevent getting demand. the to

Alex Barron

Got it.

and luck. Okay, of guys. Thanks best

David Messenger

Alex. Thanks,

Dale Francescon

Thank you.

Operator

Alex ahead. The next B. Rygiel comes with question go Please Riley. from

Alex Rygiel

Can about inventory? a conversation your in you. that trends and you demand then land bit Thank changes geographic overlay talk with

David Messenger

saw Well, saw we us I higher our region. the which more but in Mountain think softness and general, across that or markets, West priced for the we certainly in areas, softness the

the when and more the in in Southeast, than pressure in Mountain. at we areas those and we look So, saw Texas we less did West

Dale Francescon

we've Regarding months the really in at we looking have land last dropped taking on the we're our having we quick can move speaks which a and controlled the And minimal over lots for cost, things strategy the six that's we're why where that everything have changed. lots. of model to if land, approach and structure roughly XX,XXX

And so, the board one that. and land looking changes market, It's board. across really across the Alex, where it's we're in at just it's but any not

Alex Rygiel

as math And starts, fourth the would the you're then, gross around, starts the be been that quarter in were so the greater than fourth was quarter be around to a there fourth correct new X,XXX it Dave, that X,XXX? third could have starts orders X,XXX, greater in third let's therefore than my suggesting that quarter, quarter, in in relates comment and your it, would is starts quarter call your

David Messenger

got things wires of crossed. of think – a I couple So, a couple

around be in in I trim referencing many community yes, right. going because specs in more terms we we in we're it of your about of so think about of back want too on to that what would may as terms be we then that's don't completions. have talking sales, any what number, match but also community. may what It's you're gross And QX it a one level, X,XXX, you're

inventory, be getting may out into may let – a And basis. and some maybe we're one-for-one out on others we may your couple start where somebody on won't aggressive start some a so, clearing we them numbers rough getting be additionally correct. out sales while are and extra, but having close There

Alex Rygiel

you. Thank

Operator

The a with McCanless is from Please go Securities. next Jay question follow-up ahead. Wedbush

Jay McCanless

single seeing rent taking are rent guys for the my guess, Hey, whether what community? follow-up. type thanks of build from for for you demand I family or institutional,

David Messenger

getting them market to, There have as right it settles already from before that it it still a just where a ago. raised seeing we're seeing just where not XX are kind but see of prices capital, they of out. of pause they shake where as it's are days certainly somewhat on So, sitting kind out, now deploy was lot community, but of robust done, transactions the

Jay McCanless

given guess I make to discount to bulk incentives deals take to if or consumer for some sense larger to you'd there transactions point, having the you're or At neighborhoods contracts. to XX% it at put to buyer? that than or maybe those is X% SFRs does then what's have some X% And – XX% start on selling make the would to bigger be these already discounts looking to new

David Messenger

the case of of case I mean, homes, those the is of at opportunities we'd of look buyer look you course, basis, but just things. pool know those of type a would and all type on by appetite that, the the depends of course, it at what asset we and

Jay McCanless

Okay. taking Appreciate Thanks for it. my follow-up.

Operator

Dale to over hand to question-and-answer This conference would back session. the concludes I closing for remarks. any the like

Dale Francescon

I'd support once homebuyers. I'd to next also to operator. like to appreciate work and our your you, you opportunity for take to this to investment speaking continued again continued thank our and for again today. dedication our thank forward look valued like quarter. members team incredible their of investors We all time and to their Thank

Operator

The conference presentation. today's Thank you has attending concluded. now for

disconnect. now may You

Century Communities (CCS) 26 Oct 222022 Q3 Earnings call transcript