(1)   Excludes lots with homes under construction.

GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)

The following table presents additional information on the lots we owned as of June 30, 2021 and December 31, 2020.

June 30, 2021 December 31, 2020
Total lots owned 16,327 8,920
Add certain lots included in Total Lots Controlled
Land under option for future acquisition and development 606 740
Lots under option through unconsolidated development joint ventures 1,844 1,838
Total lots self-developed 18,777 11,498
Self-developed lots as a percentage of total lots owned and controlled 87.9 % 79.5 %

Reconciliation of Non-GAAP Financial Measures

The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three and six months ended June 30, 2021 and 2020 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

(Unaudited, in thousands): Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Residential units revenue $ 333,500 $ 228,667 $ 550,736 $ 419,854
Less: Mechanic’s lien contracts revenue (1,221 ) (1,882 ) (2,323 ) (3,821 )
Home closings revenue $ 332,279 $ 226,785 $ 548,413 $ 416,033
Homebuilding gross margin $ 89,055 $ 52,609 $ 143,959 $ 96,266
Homebuilding gross margin percentage 26.8 % 23.2 % 26.3 % 23.1 %
Homebuilding gross margin 89,055 52,609 143,959 96,266
Add back: Capitalized interest charged to cost of revenues 2,533 2,707 4,346 4,888
Adjusted homebuilding gross margin $ 91,588 $ 55,316 $ 148,305 $ 101,154
Adjusted homebuilding gross margin percentage 27.6 % 24.4 % 27.0 % 24.3 %

The following table presents the pre-tax income for the three and six months ended June 30, 2021 and 2020, which represents net income attributable to Green Brick for the period excluding the provision for income taxes attributable to Green Brick, and reconciles these amounts to net income attributable to Green Brick, the most directly comparable GAAP measure.

(Unaudited, in thousands): Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net income attributable to Green Brick Partners, Inc. $ 52,263 $ 33,647 $ 78,232 $ 49,564
Income tax expense attributable to Green Brick Partners, Inc. 15,693 1,348 23,193 7,386
Pre-tax income attributable to Green Brick Partners, Inc. $ 67,956 $ 34,995 $ 101,425 $ 56,950

The following table presents the non-GAAP measure of net income attributable to Green Brick Partners, Inc. for the three months ended June 30, 2021 and 2020, divided by the average total Green Brick Partners, Inc. stockholder’s equity to calculate our return on average equity. We believe this non-GAAP financial measure is relevant in measuring our profitability in relation to stockholder’s equity and should only be used to supplement Green Brick’s GAAP results.

 (Unaudited, in thousands): Three Months Ended June 30,
2021 2020
Net income attributable to Green Brick Partners, Inc. $ 52,263 $ 33,647
Beginning total Green Brick Partners, Inc. stockholders’ equity 666,131 542,982
Ending total Green Brick Partners, Inc. stockholders’ equity 717,389 575,759
Average total Green Brick Partners, Inc. stockholders’ equity $ 691,760 559,371
Net income attributable to Green Brick Partners, Inc. as a percentage of the average total Green Brick Partners, Inc. stockholders’ equity 30.2 % 24.1 %

About Green Brick Partners, Inc.

Green Brick Partners, Inc. (Nasdaq: GRBK) is a diversified homebuilding and land development company. Green Brick owns five homebuilders in Dallas, Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Trophy Signature Homes, and a 90% interest in Centre Living Homes), as well as a controlling interest in a homebuilder in Atlanta, Georgia (The Providence Group) and a homebuilder in Port St. Lucie, Florida (GHO Homes). Green Brick also owns a noncontrolling interest in Challenger Homes in Colorado Springs, Colorado and retains interests in related financial services platforms, including Green Brick Title, Providence Group Title, and Green Brick Mortgage. Green Brick is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for our residential neighborhoods and master planned communities. For more information about Green Brick Partners Inc.’s homebuilding partners, please visit https://greenbrickpartners.com/team-builders/.

Forward-Looking and Cautionary Statements:

This press release and our earnings call contain “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts and typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “feel,” “intend,” “plan,” “predict,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Forward-looking statements in this press release include statements regarding (i) our strategy for growth, the drivers and acceleration of that growth, and the impact on our results over the remainder of 2021, (ii) our margins and performance through 2021 as compared to the industry, (iii) our ability to capitalize on market opportunities and the impact on our results and (iv) our land and lot acquisition strategy and its impact on our ability to meet market demand. These forward-looking statements reflect our current views about future events and involve estimates and assumptions which may be affected by risks and uncertainties in our business, as well as other external factors, which could cause future results to materially differ from those expressed or implied in any forward-looking statement. These risks include, but are not limited to: (1) continuing impacts from the COVID-19 pandemic, (2) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (3) changes in macroeconomic conditions, including interest rates and unemployment rates, that could adversely impact demand for new homes or the ability of potential buyers to qualify; (4) shortages, delays or increased costs of raw materials, especially in light of COVID-19 and increased demand for materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed our ability to increase prices; (5) a shortage of labor, (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including an inability to grow our operations or expand our Trophy brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) government regulation risks; (10) a lack of availability or volatility of mortgage financing or a rise in interest rates; (11) severe weather events or natural disasters; (12) difficulty in obtaining sufficient capital to fund our growth; (13) our ability to meet our debt service obligations; (14) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (15) changes in accounting standards that adversely affect our reported earnings or financial condition. For a more detailed discussion of these and other risks and uncertainties applicable to Green Brick please see our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.