Why invest in Green Brick Partners?
Green Brick Partners brings to the table a seasoned management team comprised of building and finance veterans that have decades of experience in our core markets with expertise in capital allocation, land acquisition, entitlement, development, construction, marketing, and home sales.
Our uniquely structured business model focuses on three complimentary revenue streams:
1. Land Acquisition
– Deals are typically sourced by us or our controlled builders and approved by Green Brick Partners.
– We acquire land and enter into a lot takedown agreement with our controlled builders.
– We entitle and develop land, targeting at least a 20% unlevered IRR.
– We retain the flexibility to sell lots to 3rd parties to maximize returns and minimize risk.
2. Construction Lending
– We finance lot purchases and home construction for our controlled builders at attractive interest rates to Green Brick with low loan-to-values.
– Our controlled builders are obligated to finance all home construction exclusively with Green Brick.
3. Equity Participation
– We own controlling interest in our controlled builders.
– We receive 50% of the residual profits of our controlled builders after first collecting land profits and construction lending income.
– Our controlled builders are highly incentivized to operate efficiently to maximize their profit participation.
This enables us to preserves updside, and limits downside. Due to our controlled ownership of local builders, we are able to ensure the placement of strong local management teams while participating in the financial success of each builder.
Low Debt-to-Capital Ratio
Green Brick Partners has superior financial and operating metrics despite having one of the lowest debt to capital ratios among public builders.
Net Debt to Total Capital Q2 2016 for GRBK and Comparative Companies
- GREEN BRICK PARTNERS 11%
- DHI 24%
- WCIC 26%
- MTH 34%
- MDC 34%
- PHM 36%
- TPH 37%
- UCP 39%
- TOL 40%
- TMHC 44%
- NWHM 44%
- LEN 47%
- KBH 52%
- WLH 58%
Disciplined Investment Approach
Our extensive experience and the strong reputation of our management team combined with our long-standing relationships with other market participants, provides us with a competitive advantage in efficiently sourcing, purchasing and entitling land. As part of our disciplined investment approach we intend to pursue the acquisition of additional homebuilders in our core or new markets and to pursue a robust pipeline of development opportunities to fuel future expansion.