Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________
FORM 10-K
_______________________________________________________________________________
(Mark One)
ý
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2018
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to
Commission File Number 1-35796
tphlogoa01.jpg 
TRI Pointe Group, Inc.
(Exact Name of Registrant as Specified in Its Charter)
_______________________________________________________________________________
Delaware
 
61-1763235
(State or other Jurisdiction of Incorporation or Organization)
 
(I.R.S. Employer Identification No.)
19540 Jamboree Road, Suite 300
Irvine, California 92612
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (949) 438-1400
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
 
New York Stock Exchange
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  ý    No  ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the 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 every Interactive Data File required to be submitted 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 such files).    Yes  ý    No  ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K 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 the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
ý
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes  ¨    No   ý
The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant on June 30, 2018, based on the closing price of $16.36 as reported by the New York Stock Exchange, was $2,448,101,287.
141,669,513 shares of common stock were issued and outstanding as of February 8, 2019.
DOCUMENTS INCORPORATED BY REFERENCE:
Portions from the registrant’s proxy statement relating to its 2019 annual meeting of stockholders are incorporated by reference into Part III, Items 10, 11, 12, 13 and 14.

- 1 -



TRI Pointe Group, Inc.
ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 2018
 
Table of Contents
 
 
 
Page
Number
 
Part I
 
 
 
 
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
 
 
 
 
Part II
 
 
 
 
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
 
 
 
 
Part III
 
 
 
 
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
 
 
 
 
Part IV
 
 
 
 
Item 15.
Item 16.
 


- 1 -



CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This annual report on Form 10-K contains certain statements that are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are based on our current intentions, beliefs, expectations and predictions for the future, and you should not place undue reliance on these statements. These statements use forward-looking terminology, are based on various assumptions made by us, and may not be accurate because of risks and uncertainties surrounding the assumptions that are made.
Factors listed in this sectionas well as other factorsmay cause actual results to differ significantly from the forward-looking statements included in this annual report on Form 10-K. There is no guarantee that any of the events anticipated by the forward-looking statements in this annual report on Form 10-K will occur, or if any of the events occurs, there is no guarantee what effect it will have on our operations, financial condition, or share price.
We undertake no, and hereby disclaim any, obligation to update or revise any forward-looking statements, unless required by law. However, we reserve the right to make such updates or revisions from time to time by press release, periodic report, or other method of public disclosure without the need for specific reference to this annual report on Form 10-K. No update or revision shall be deemed to indicate that other statements not addressed by that update or revision remain correct or create an obligation to provide any other updates or revisions.
Forward-Looking Statements
Forward-looking statements that are included in this annual report on Form 10-K are generally accompanied by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or other words that convey the uncertainty of future events or outcomes. These forward-looking statements may include, but are not limited to, statements regarding our strategy, projections and estimates concerning the timing and success of specific projects and our future production, land and lot sales, outcome of legal proceedings, operational and financial results, including our estimates for growth, financial condition, sales prices, prospects and capital spending.
Risks, Uncertainties and Assumptions
The major risks and uncertaintiesand assumptions that are madethat affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:
the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages and strength of the U.S. dollar;
market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
levels of competition;
the successful execution of our internal performance plans, including any restructuring and cost reduction initiatives;
global economic conditions;
raw material prices;
oil and other energy prices;
the effect of weather, including the re-occurrence of drought conditions in California;  
the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters;
transportation costs;
federal and state tax policies;
the effect of land use, environment and other governmental laws and regulations;
legal proceedings or disputes and the adequacy of reserves;
risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects;
changes in accounting principles;
risks related to unauthorized access to our computer systems, theft of our homebuyers’ confidential information or other forms of cyber-attack; and
other factors described in “Risk Factors.”

- 2 -




EXPLANATORY NOTE
As used in this annual report on Form 10-K, references to “TRI Pointe”, “the Company”, “we”, “us”, or “our” in this annual report on Form 10-K (including in the consolidated financial statements and related notes thereto in this annual report on Form 10-K) refer to TRI Pointe Group, Inc., a Delaware corporation (“TRI Pointe Group”) and its subsidiaries.

 

- 3 -



PART I.
Item 1.
Business

Our Company  
TRI Pointe was founded in April 2009, near the end of an unprecedented downturn in the national homebuilding industry.  Since then, we have grown from a Southern California fee homebuilder into a regionally focused national homebuilder with a portfolio of the following six quality homebuilding brands operating in 15 markets across ten states:
Maracay in Arizona;
Pardee Homes in California and Nevada;
Quadrant Homes in Washington;
Trendmaker Homes in Texas;
TRI Pointe Homes in California, Colorado and the Carolinas; and
Winchester Homes in Maryland and Virginia.
Our growth strategy is to capitalize on high demand in selected "core" markets with favorable population and employment growth as a result of proximity to job centers or primary transportation corridors. As of December 31, 2018, our operations consisted of 146 active selling communities and 27,740 lots owned or controlled.  See “Lots Owned or Controlled” below.  Our construction expertise across an extensive product offering allows us flexibility to pursue a wide array of land acquisition opportunities and appeal to a broad range of potential homebuyers, including buyers of entry-level, move-up, luxury and active adult homes.  As a result, we build across a variety of base sales price points, ranging from approximately $200,000 to $2.2 million, and home sizes, ranging from approximately 1,000 to 5,500 square feet.  See “Description of Projects and Communities under Development” below.  For the years ended December 31, 2018 and 2017, we delivered 5,071 and 4,697 homes, respectively, and the average sales price of our new homes delivered was approximately $640,000 and $582,000, respectively.
In October 2018, we announced the expansion of our TRI Pointe Homes brand into the southeast region with the launch of a new division in the Carolinas. In December 2018, we announced the acquisition of Dunhill Homes, LLC, which extended our homebuilding presence in Texas to the Dallas–Fort Worth region. Dunhill Homes began operating under our Trendmaker Homes name on January 1, 2019.
Our founders firmly established our core values of quality, integrity and excellence.  These are the driving forces behind our innovative designs and strong commitment to our homebuyers.
Our Competitive Strengths
We believe the following strengths provide us with a significant competitive advantage in implementing our business strategy:
Experienced and Proven Leadership
Douglas Bauer, our Chief Executive Officer, Thomas Mitchell, our President and Chief Operating Officer, and Michael Grubbs, our Chief Financial Officer, have worked together for over 29 years and have a successful track record of managing and growing a public homebuilding company.  Spanning over a century, their combined real estate industry experience includes land acquisition, financing, entitlement, development, construction, marketing and sales of single-family detached and attached homes in communities in a variety of markets.  In addition, the management teams at each of our homebuilding subsidiaries have substantial industry knowledge and local market expertise. We believe that our management teams’ prior experience, extensive relationships and strong local reputations provide us with a competitive advantage in securing projects, obtaining entitlements, building quality homes and completing projects within budget and on schedule.
Focus on High Growth Core Markets
Our business is well-positioned to continue to capitalize on the broader national housing market.  We are focused on the design, construction and sale of innovative single-family detached and attached homes in major metropolitan areas in Arizona, California, Colorado, the Carolinas, Texas, Nevada, the Washington, D.C. metro area, and Washington State.  These markets are generally characterized by high job growth and increasing populations, creating strong demand for new housing.  We believe they represent attractive homebuilding markets with opportunities for long-term growth and that we have strong land positions strategically located within these markets.  Moreover, our management teams have deep, local market knowledge of the homebuilding and development industries.  We believe this experience and strong relationships with local market participants enable us to source, acquire and entitle land efficiently.

- 4 -



Strong Operational Discipline and Controls
Our management teams pursue a hands-on approach.  Our strict operating discipline, including financial accountability at the project management level, is a key part of our strategy to maximize returns while minimizing risk.
Acquire Attractive Land Positions While Reducing Risk
We believe that our reputation and extensive relationships with land sellers, master plan developers, financial institutions, brokers and other builders enable us to continue to acquire well-positioned land parcels in our target markets and provide us access to a greater number of acquisition opportunities.  We believe our expertise in land development and planning enables us to create desirable communities that meet or exceed our homebuyers’ expectations, while operating at competitive costs.
Increase Market Position in Growth Markets
We believe that there are opportunities to expand profitably in our existing and target markets, and we continually review our selection of markets based on both aggregate demographic information and our own operating results.  We use the results of these reviews to re-allocate our investments to those markets where we believe we can maximize our profitability and return on capital.  While our primary growth strategy has focused on increasing our market position in our existing markets, we recently expanded our homebuilding operations to the Carolinas and the Dallas–Fort Worth region in Texas. We may continue, on an opportunistic basis, to explore expansion into other markets through organic growth or acquisition.
Provide Superior Design and Homeowner Experience and Service
We consider ourselves a “progressive” homebuilder driven by an exemplary homeowner experience, cutting-edge product development and exceptional execution.  Our core operating philosophy is to provide a positive, memorable experience to our homeowners through active engagement in the building process, tailoring our product to homeowners’ lifestyle needs and enhancing communication, knowledge and satisfaction.  We believe that the new generation of home buying families has different ideas about the kind of home buying experience it wants.  As a result, our selling process focuses on the home’s features, benefits, quality and design in addition to the traditional metrics of price and square footage.  In addition, we devote significant resources to the research and design of our homes to better meet the needs of our homebuyers.  Through our LivingSmart® platform, we provide homes that we believe are earth-friendly, enhance homeowners’ comfort, promote a healthier lifestyle and deliver tangible operating cost savings versus less efficient resale homes.  Collectively, we believe these steps enhance the selling process, lead to a more satisfied homeowner and increase the number of homebuyers referred to our communities.
Offer a Diverse Range of Products
We are a builder with a wide variety of product offerings that enable us to meet the specific needs of each of our core markets, which we believe provides us with a balanced portfolio and an opportunity to increase market share.  We have demonstrated expertise in effectively building homes across product offerings from entry-level through luxury and active adult.  We spend extensive time studying and designing our products through the use of architects, consultants and homebuyer focus groups for all levels and price points in our target markets.  We believe our diversified product strategy enables us to best serve a wide range of homebuyers, adapt quickly to changing market conditions and optimize performance and returns while strategically reducing portfolio risk.  Within each of our core markets we determine the profile of homebuyers we hope to address and design neighborhoods and homes with the specific needs of those homebuyers in mind.
Focus on Efficient Cost Structure and Target Attractive Returns
Our experienced management teams are vigilant in maintaining their focus on controlling costs.  We competitively bid new projects and phases while maintaining strong relationships with our trade partners by managing production schedules closely and paying our vendors on time.
We combine decentralized management in those aspects of our business in which we believe detailed knowledge of local market conditions is critical (such as governmental processing, construction, land acquisition, land development and sales and marketing), with centralized management in those functions in which we believe central control is required (such as approval of land acquisitions, financial, treasury, human resources and legal matters).  We have also made significant investments in systems and infrastructure to operate our business efficiently and to support the planned future growth of our company as a result of executing our expansion strategy.

- 5 -



Utilize Prudent Leverage
Our ongoing financial strategy includes redeployment of cash flows from continuing operations and debt to provide us with the financial flexibility to access capital on the best terms available.  In that regard, we expect to employ prudent levels of leverage to finance the acquisition and development of our lots and construction of our homes.  See “Our Financing Strategy” below.
Lots Owned or Controlled
As of December 31, 2018, we owned or controlled, pursuant to land option contracts or purchase contracts, an aggregate of 27,740 lots.  We refer to lots that are under land option contracts as “controlled.” See “Acquisition Process” below. Excluded from lots owned or controlled are investments described in Note 6, Investments in Unconsolidated Entities, of the notes to our consolidated financial statements included elsewhere in this annual report on Form 10-K. The following table presents certain information with respect to our lots owned or controlled as of December 31, 2018.
 
 
Lots
Owned
 
Lots
Controlled
 
Lots
Owned or
Controlled
Maracay
2,346

 
962

 
3,308

Pardee Homes
13,700

 
676

 
14,376

Quadrant Homes
883

 
861

 
1,744

Trendmaker Homes
1,661

 
831

 
2,492

TRI Pointe Homes
3,150

 
945

 
4,095

Winchester Homes
1,317

 
408

 
1,725

Total
23,057

 
4,683

 
27,740


Description of Projects and Communities under Development
Our lot inventory includes land that we are holding for future development.  The development of these lots will be subject to a variety of marketing, regulatory and other factors and in some cases we may decide to sell the land prior to development.  The following table presents project information relating to each of our markets as of December 31, 2018 and includes information on current projects under development where we are building and selling homes as of December 31, 2018.

- 6 -



Maracay
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2018
 
Lots
Owned as of
December 31, 2018(3)
 
Backlog as of
December 31,2018(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2018
 
Sales Price
Range(in thousands)(6)
Phoenix, Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
City of Buckeye:
 
 
 
 
 
 
 
 
 
 
 
 
 
Verrado Victory
2015
 
98

 
80

 
18

 
5

 
31

 
 $373 - $405
Arroyo Seco
2019
 
44

 

 
44

 

 

 
 $406 - $458
City of Chandler:
 
 
 
 
 
 
 
 
 
 
 
 
 
Hawthorn Manor
2017
 
84

 
59

 
25

 
11

 
28

 
 $490 - $564
Mission Estates
2019
 
26

 

 
26

 
3

 

 
 $530 - $590
Windermere Ranch
2019
 
91

 

 
91

 

 

 
 $499 - $539
City of Gilbert:
 
 
 
 
 
 
 
 
 
 
 
 
 
The Preserve at Adora Trails
2017
 
82

 
82

 

 

 
48

 
Closed
Marathon Ranch
2018
 
63

 
9

 
54

 
27

 
9

 
$513 - $556
Lakes At Annecy
2019
 
216

 

 
216

 

 

 
$275 - $350
Annecy P3
2020
 
250

 

 
250

 

 

 
$226 - $301
Lakeview Trails
2019
 
92

 

 
92

 

 

 
$495 - $570
Copper Bend
2019
 
38

 

 
38

 

 

 
$451 - $484
Hamstra Assemblage
2020
 
332

 

 
332

 

 

 
$470 - $750
City of Goodyear:
 
 
 
 
 
 
 
 
 
 
 
 
 
Villages at Rio Paseo
2018
 
117

 
18

 
99

 
1

 
18

 
 $190 - $219
Cottages at Rio Paseo
2018
 
93

 
31

 
62

 
8

 
31

 
 $230 - $250
City of Mesa:
 
 
 
 
 
 
 
 
 
 
 
 
 
Kinetic Point at Eastmark
2013
 
80

 
80

 

 

 
3

 
 Closed
Curie Court at Eastmark
2016
 
106

 
106

 

 

 
48

 
 Closed
The Vista at Granite Crossing
2018
 
37

 
25

 
12

 
11

 
25

 
 $438 - $513
Electron at Eastmark
2019
 
53

 

 
53

 
11

 

 
 $361 - $438
City of Peoria:
 
 
 
 
 
 
 
 
 
 
 
 
 
Legacy at The Meadows
2017
 
74

 
66

 
8

 
2

 
40

 
 $425 - $451
Estates at The Meadows
2017
 
272

 
100

 
172

 
41

 
57

 
 $497 - $571
Enclave at The Meadows
2018
 
126

 
29

 
97

 
8

 
29

 
 $375 - $470
Deseo
2019
 
94

 

 
94

 

 

 
 $494 - $547
City of Phoenix:
 
 
 
 
 
 
 
 
 
 
 
 
 
Navarro Groves
2018
 
54

 
24

 
30

 
17

 
24

 
 $439 - $484
Loma @ Avance
2019
 
124

 

 
124

 

 

 
 $352 - $412
Ranger @ Avance
2019
 
143

 

 
143

 

 

 
 $398 - $466
Piedmont @ Avance
2019
 
101

 

 
101

 

 

 
 $475 - $495
Alta @ Avance
2019
 
26

 

 
26

 

 

 
 $595 - $625
Town of Queen Creek:
 
 
 
 
 
 
 
 
 
 
 
 
 
Spur Cross
2020
 
118

 

 
118

 

 

 
 $454 - $544
Closed Communities
N/A
 

 

 

 

 
43

 
 
Phoenix, Arizona Total
 
 
3,034

 
709

 
2,325

 
145

 
434

 
 
Tucson, Arizona
 
 
 
 
 
 
 
 
 
 
 
 
 
Oro Valley:
 
 
 
 
 
 
 
 
 
 
 
 
 
Desert Crest - Center Pointe Vistoso
2016
 
103

 
87

 
16

 
2

 
38

 
$262 - $307
The Cove - Center Pointe Vistoso
2016
 
83

 
82

 
1

 
1

 
33

 
$345 - $405
Summit N & S - Center Pointe Vistoso
2016
 
88

 
85

 
3

 
3

 
20

 
$397 - $432
The Pinnacle - Center Pointe Vistoso
2016
 
69

 
68

 
1

 

 
8

 
$448 - $480
Closed Communities
N/A
 

 

 

 

 
5

 
 
Tucson, Arizona Total
 
 
343

 
322

 
21

 
6

 
104

 
 
Maracay Total
 
 
3,377

 
1,031

 
2,346

 
151

 
538

 
 






- 7 -




Pardee Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2018
 
Lots
Owned as of
December 31, 2018(3)
 
Backlog as of
December 31,2018(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2018
 
Sales Price
Range(in thousands)(6)
California
 
 
 
 
 
 
 
 
 
 
 
 
 
San Diego County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Almeria
2017
 
80

 
75

 
5

 
5

 
60

 
$1,440 - $1,560
Olvera
2017
 
84

 
84

 

 

 
69

 
$1,315 - $1,470
Vista Santa Fe
2019
 
44

 

 
44

 

 

 
$1,780 - $1,895
Sendero
2019
 
112

 

 
112

 
24

 

 
$1,150 - $1,295
Terraza
2019
 
81

 

 
81

 
19

 

 
$1,260 - $1,370
Carmel
2019
 
105

 

 
105

 
18

 

 
$1,380 - $1,490
Vista Del Mar
2019
 
79

 

 
79

 
11

 

 
$1,530 - $1,700
Pacific Highlands Ranch Future
2020
 
115

 

 
115

 

 

 
$1,800 - $1,900
Sandstone
2018
 
81

 
49

 
32

 
10

 
49

 
$640 - $710
Lake Ridge
2018
 
129

 
34

 
95

 
21

 
34

 
$710 - $860
Azul
2017
 
121

 
121

 

 

 
57

 
$360 - $475
Veraz
2018
 
111

 
10

 
101

 

 
10

 
$380 - $460
Moderna
2018
 
44

 
10

 
34

 

 
10

 
$355 - $440
Marea
2020
 
135

 

 
135

 

 

 
$370 - $470
Solmar
2019
 
74

 

 
74

 

 

 
$365 - $440
Solmar Sur
TBD
 
108

 

 
108

 

 

 
$365 - $440
Meadowood
TBD
 
845

 

 
845

 

 

 
$290 - $590
South Otay Mesa
TBD
 
893

 

 
893

 

 

 
TBD
Los Angeles County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Verano
2017
 
95

 
37

 
58

 
7

 
28

 
$560 - $670
Arista
2017
 
143

 
68

 
75

 
4

 
38

 
$700 - $785
Cresta
2018
 
67

 
10

 
57

 
12

 
15

 
$790 - $890
Lyra
2019
 
84

 

 
84

 
10

 

 
 $648 - $720
Sola
2019
 
73

 

 
73

 
16

 

 
 $545 - $580
Skyline Ranch Future
TBD
 
913

 

 
913

 

 

 
 $550 - $810
Riverside County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Vantage
2016
 
101

 
99

 
2

 

 
47

 
$390 - $410
Aura
2017
 
100

 
97

 
3

 
2

 
49

 
$370 - $385
Starling
2017
 
68

 
40

 
28

 
5

 
25

 
$425 - $430
Canyon Hills Future 70 x 115
TBD
 
125

 

 
125

 

 

 
TBD
Westlake
2020
 
163

 

 
163

 

 

 
$318 - $325
Elara
2016
 
248

 
202

 
46

 
13

 
83

 
$300 - $330
Daybreak
2017
 
189

 
74

 
115

 
4

 
49

 
$360 - $385
Cascade
2017
 
151

 
100

 
51

 
17

 
73

 
$315 - $330
Abrio
2018
 
138

 
32

 
106

 
4

 
32

 
$405 - $430
Beacon
2018
 
106

 
18

 
88

 
24

 
18

 
$465 - $520
Alisio
2019
 
84

 

 
84

 

 

 
$300 - $330
Vita
2019
 
111

 

 
111

 
13

 

 
$310 - $335
Avid
2019
 
72

 

 
72

 
9

 

 
$340 - $365
Elan
2019
 
101

 

 
101

 
4

 

 
$410 - $440
Mira
2019
 
90

 

 
90

 
7

 

 
$375 - $400
Sundance Future Active Adult
TBD
 
330

 

 
330

 

 

 
TBD
Avena
2018
 
84

 
25

 
59

 
7

 
25

 
$450 - $475
Tamarack
2018
 
84

 
55

 
29

 
7

 
55

 
$470 - $520
Braeburn
2018
 
82

 
8

 
74

 

 
8

 
$420 - $450
Canvas
2018
 
89

 
8

 
81

 
1

 
8

 
$400 - $425
Kadence
2018
 
85

 
8

 
77

 
1

 
8

 
$420 - $440
Newpark
2018
 
93

 
8

 
85

 
5

 
8

 
$450 - $495
Easton
2018
 
92

 
5

 
87

 
2

 
5

 
$475 - $530

- 8 -



Tournament Hills Future
TBD
 
268

 

 
268

 

 

 
TBD
Banning
2020
 
4,344

 

 
4,344

 

 

 
TBD
San Joaquin County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Bear Creek
TBD
 
1,252

 

 
1,252

 

 

 
TBD
Closed Communities
 
 

 

 

 

 
135

 
 
California Total
 
 
13,266

 
1,277

 
11,989

 
282

 
998

 
 
Nevada
 
 
 
 
 
 
 
 
 
 
 
 
 
Clark County:
 
 
 
 
 
 
 
 
 
 
 
 
 
North Peak
2015
 
176

 
175

 
1

 

 
53

 
$312 - $370
Castle Rock
2015
 
183

 
179

 
4

 

 
63

 
$365 - $455
Escala
2016
 
64

 
63

 
1

 

 
10

 
 $520 - $590
Strada
2017
 
143

 
59

 
84

 

 
35

 
 $420 - $470
Linea
2018
 
123

 
48

 
75

 
23

 
48

 
$360 - $400
Inspirada Town Center
2020
 
160

 

 
160

 

 

 
 $375 - $480
Meridian
2016
 
62

 
61

 
1

 
1

 
19

 
 $595 - $690
Pebble Estate Future
TBD
 
8

 

 
8

 

 

 
 TBD
Encanto
2016
 
51

 
49

 
2

 

 
15

 
 $475 - $530
Luma
2018
 
63

 
41

 
22

 
7

 
41

 
 $490 - $530
Evolve
2019
 
74

 

 
74

 

 

 
 $280 - $300
Corterra
2018
 
112

 
3

 
109

 
8

 
3

 
 $460 - $550
Keystone
2017
 
70

 
63

 
7

 
1

 
39

 
 $465 - $550
Cobalt
2017
 
124

 
46

 
78

 
6

 
41

 
 $380 - $455
Onyx
2018
 
71

 
14

 
57

 
2

 
14

 
 $450 - $485
Axis
2017
 
78

 
33

 
45

 
12

 
23

 
 $860 - $1,125
Midnight Ridge
2019
 
104

 

 
104

 

 

 
 $540 - $585
Pivot
2017
 
88

 
44

 
44

 
9

 
34

 
 $405 - $470
Strada at Pivot
2017
 
27

 
25

 
2

 
1

 
18

 
 $450 - $480
Nova Ridge
2017
 
108

 
39

 
69

 
18

 
38

 
 $680 - $840
Tera Luna
2018
 
116

 
4

 
112

 
5

 
4

 
 $545 - $660
Indogo
2018
 
202

 
22

 
180

 
10

 
22

 
 $315 - $360
Larimar
2018
 
170

 
4

 
166

 
4

 
4

 
 $380 - $420
Blackstone
2018
 
140

 
5

 
135

 
13

 
5

 
 $405 - $500
Cirrus
2019
 
54

 

 
54

 

 

 
 $350 - $375
Sandalwood
2020
 
117

 

 
117

 

 

 
 $685 - $815
Closed Communities
N/A
 

 

 

 

 
55

 
 
Nevada Total
 
 
2,688

 
977

 
1,711

 
120

 
584

 
 
Pardee Total
 
 
15,954

 
2,254

 
13,700

 
402

 
1,582

 
 

 

- 9 -



Quadrant Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2018
 
Lots
Owned as of
December 31, 2018(3)
 
Backlog as of
December 31,2018(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2018
 
Sales Price
Range(in thousands)(6)
Washington
 
 
 
 
 
 
 
 
 
 
 
 
 
Snohomish County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Greenstone Heights, Bothell
2017
 
41

 
38

 
3

 
1

 
36

 
$885
Grove North, Bothell
2019
 
43

 

 
43

 

 

 
$765 - $900
Grove South, Bothell
2019
 
9

 

 
9

 

 

 
$785 - $820
King County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Vareze, Kirkland
2019
 
82

 

 
82

 

 

 
$700 - $900
Inglewood Landing, Sammamish
2019
 
21

 

 
21

 
6

 

 
$1,115 - $1,295
Jacobs Landing, Sammamish
2017
 
20

 
19

 
1

 
1

 
18

 
$1,160 - $1,280
Kirkwood Terrace, Sammamish
2018
 
12

 
5

 
7

 
2

 
5

 
$1,800 - $2,100
English Landing P1, Redmond
2018
 
50

 
37

 
13

 
6

 
37

 
$1,195 - $1,425
Cedar Landing, North Bend
2019
 
138

 

 
138

 

 

 
$735 - $880
Monarch Ridge, Sammamish
2019
 
59

 

 
59

 

 

 
 $970 - $1,135
Overlook at Summit Park, Maple Valley
2019
 
126

 

 
126

 
3

 

 
$590 - $745
Ray Meadows, Redmond
2018
 
27

 
10

 
17

 
4

 
10

 
$1,065 - $1,190
Aurea, Sammamish
2019
 
41

 

 
41

 

 

 
$710 - $860
Aldea, Newcastle
2019
 
129

 

 
129

 
11

 

 
$695 - $925
Lario, Bellevue
2019
 
46

 

 
46

 

 

 
 $795 - $1,125
Soundview, Federal Way
2018
 
21

 
4

 
17

 
1

 
4

 
 $531 - $660
Eagles Glen, Sammamish
2019
 
10

 

 
10

 

 

 
 $1,100 - $2,000
Finn Meadows, Kirkland
2019
 
5

 

 
5

 

 

 
$900 - $1,049
Pierce County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Harbor Hill S-5/6, Gig Harbor
2017
 
72

 
63

 
9

 
6

 
40

 
$493
Harbor Hill S-2, Gig Harbor
2017
 
41

 
36

 
5

 
2

 
29

 
$465
Kitsap County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Winslow Grove, Bainbridge Island
2018
 
19

 
2

 
17

 
3

 
2

 
$1,047 - $1,192
Blue Heron, Poulsbo
2021
 
85

 

 
85

 

 

 
$474 - $649
Closed Communities
N/A
 

 

 

 

 
178

 
N/A
Washington Total
 
 
1,097

 
214

 
883

 
46

 
359

 
 
Quadrant Homes Total
 
 
1,097

 
214

 
883

 
46

 
359

 
 
 




- 10 -



Trendmaker Homes
County, Project, City
Year of
First
Delivery(1)
 
Total
Number of Lots(2)
 
Cumulative
Homes
Delivered 
as of
December 31, 2018
 
Lots
Owned as of
December 31, 2018(3)
 
Backlog as of
December 31,2018(4)(5)
 
Homes 
Delivered
for the Twelve
Months Ended
December 31, 2018
 
Sales Price
Range(in thousands)(6)
Texas
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazoria County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pomona, Manvel
2015
 
49

 
35

 
14

 
3

 
14

 
$375 - $471
Rise Meridiana
2016
 
47

 
30

 
17

 

 
13

 
$292 - $350
Fort Bend County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross Creek Ranch 60', Fulshear
2013
 
48

 
31

 
17

 
1

 
16

 
$370 - $470
Cross Creek Ranch 65', Fulshear
2013
 
89

 
64

 
25

 
10

 
13

 
$442 - $521
Cross Creek Ranch 70', Fulshear
2013
 
111

 
89

 
22

 
6

 
17

 
$490 - $561
Cross Creek Ranch 80', Fulshear
2013
 
71

 
53

 
18

 
11

 
13

 
$557 - $676
Cross Creek Ranch 90', Fulshear
2013
 
37

 
32

 
5

 
1

 
6

 
$695 - $759
Fulshear Run 1/2 Acre, Richmond
2016
 
54

 
31

 
23

 
12

 
13

 
$573 - $679
Harvest Green 75', Richmond
2015
 
42

 
34

 
8

 
4

 
15

 
$446 - $543
Sienna Plantation 85', Missouri City
2015
 
54

 
30

 
24

 
1

 
14

 
$546 - $645
Grayson Woods 60'
TBD
 
5

 
1

 
4

 

 

 
TBD
Grayson Woods 70'
TBD
 
4

 

 
4

 

 

 
TBD
Harris County:
 
 
 
 
 
 
 
 
 
 
 
 
 
The Groves, Humble
2015
 
114

 
71

 
43

 
4

 
16

 
$311 - $524
Lakes of Creekside
2015
 
38

 
16

 
22

 
4

 
7

 
$460 - $611
Balmoral 50'
2019
 
24

 

 
24

 

 

 
TBD
Bridgeland '80, Cypress
2015
 
147

 
125

 
22

 
3

 
24

 
$549 - $636
Bridgeland 70'
2018
 
41

 
7

 
34

 
1

 
7

 
$511 - $574
Villas at Bridgeland 50'
2018
 
37

 
2

 
35

 
2

 
2

 
$324 - $390
Elyson 70', Cypress
2016
 
20

 
18

 
2

 

 
10

 
$449 - $480
Clear Lake, Houston
2015
 
778

 
468

 
310

 
41

 
133

 
$346 - $663
Montgomery County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Woodtrace, Woodtrace
2014
 
39

 
37

 
2

 

 
7

 
$512 - $526
Northgrove, Tomball
2015
 
25

 
7

 
18

 

 
2

 
TBD
Bender's Landing Estates, Spring
2014
 
104

 
91

 
13

 
4

 
31

 
$511 - $584
The Woodlands, Creekside Park
2015
 
121

 
74

 
47

 
14

 
35

 
$447 - $499
Royal Brook, Porter
2019
 
18

 

 
18

 

 

 
$416 - $432
Waller County:
 
 
 
 
 
 
 
 
 
 
 
 
 
LakeHouse
TBD
 
350

 

 
350

 

 

 
TBD
Williamson County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Crystal Falls
2016
 
29

 
25

 
4

 

 
9

 
TBD
Rancho Sienna 60'
2016
 
44

 
18

 
26

 
3

 
14

 
$340 - $420
Rancho Sienna 80'
2018
 
5

 
2

 
3

 
1

 
2

 
$456 - $517
Highlands at Mayfield Ranch 50'
2018
 
36

 
8

 
28

 
3

 
3

 
$280 - $330
Highlands at Mayfield Ranch 60'
2018
 
23

 
1

 
22

 
5

 
1

 
$340 - $406
Rancho Sienna 50'
2019
 
22

 

 
22

 
1

 

 
$291 - $348
Palmera Ridge
2019
 
30

 

 
30

 

 

 
$270 - $324
Hays County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Belterra 60', Austin
2017
 
36

 
26

 
10

 
2

 
17

 
$375 - $466
Belterra 80', Austin
2016
 
37

 
34

 
3

 

 
16

 
$535 - $603
Headwaters, Dripping Springs
2017
 
30

 
23

 
7

 
5

 
16

 
$399 - $450
Travis County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Lakes Edge 70'
2018
 
45

 
13

 
32

 
31

 
13

 
$652 - $792
Lakes Edge 80'
2018
 
14

 
4

 
10

 
5

 
4

 
$650 - $835
Collin County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Miramonte, Frisco
2016
 
62

 
36

 
26

 
5

 
4

 
$485 - $570
Retreat at Craig Ranch, McKinney
2012
 
165

 
143

 
22

 
5

 

 
$355 - $400
Dallas County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Vineyards, Rowlett
2017
 
28

 
12

 
16

 
4

 

 
$371 - $480

- 11 -



Denton County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Glenview, Frisco
2017
 
50

 
8

 
42

 
7

 
3

 
$345 - $514
Paloma Creek, Little Elm
 
 
190

 
144

 
46

 
12

 
3

 
$280 - $390
Parks at Legacy, Prosper
2017
 
42

 
14

 
28

 
8

 
1

 
$387 - $495
Shadow Creek, Hickory Creek
2016
 
40

 
36

 
4

 

 

 
$375 - $450
Valencia, Little Elm
2016
 
68

 
37

 
31

 
10

 
4

 
$363 - $464
Villages of Carmel, Denton
2017
 
47

 
42

 
5

 
27

 

 
$287 - $357
Kaufman County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Park Trails, Forney
2015
 
85

 
73

 
12

 
3

 
5

 
$245 - $280
Rockwall County:
 
 
 
 
 
 
 
 
 
 
 
 
 
Heath Golf and Yacht, Heath
2016
 
86

 
57