8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________

FORM 8-K

___________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2019

Green Brick Partners, Inc.

 

_________________________________________________

(Exact name of registrant as specified in its charter)

Delaware				001-33530	20-5952523
(State or other jurisdiction of incorporation)				(Commission File Number)	(IRS Employer Identification Number)
2805 Dallas Pkwy	,	Ste 400
Plano	,	TX	75093	(469)	573-6755
(Address of principal executive offices, including Zip Code)				(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report) Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	GRBK	The Nasdaq Stock Market LLC
Preferred Stock Purchase Rights	N/A	N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ¨

Item 2.02 Results of Operations and Financial Condition.

On November 7, 2019, Green Brick Partners, Inc. issued a press release announcing its results of operations for the third quarter ended September 30, 2019. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein.

The information in Item 2.02 of this report, including Exhibit 99.1 attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits

Exhibit No.	Description of Exhibit
99.1	Press Release, dated November 7, 2019.
99.2	Green Brick Partners, Inc. - Third Quarter 2019 Investor Call Presentation, dated November 7, 2019.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                

GREEN BRICK PARTNERS, INC.
By:	/s/ Richard A. Costello
Name:	Richard A. Costello
Title:	Chief Financial Officer

Date:    November 7, 2019

EX-99.1

Exhibit 99.1

GREEN BRICK PARTNERS, INC. REPORTS THIRD QUARTER RESULTS

RECORD EPS OF $0.31 PER SHARE, UP 29.2%

43.4% INCREASE IN RESIDENTIAL UNITS REVENUE

46.8% INCREASE IN NEW HOME ORDERS

RECORD QUARTERLY RESIDENTIAL UNITS REVENUE AND GROSS PROFIT

EXPECTING 21% COMMUNITY GROWTH

PLANO, Texas, November 7, 2019 — Green Brick Partners, Inc. (Nasdaq: GRBK) (“we,” “Green Brick” or the “Company”) today reported results for its third quarter ended September 30, 2019.

Results for the Third Quarter Ended September 30, 2019:

• For the quarter ended September 30, 2019, basic net income attributable to Green Brick per common share (“EPS”), total revenue, gross profit, residential units revenue and homes under construction all reflect a record for any quarter. See the following details.

• EPS for the three months ended September 30, 2019 was $0.31, a 29.2%increase compared to the quarterly earnings of $0.24 for the three months ended September 30, 2018.

• For the three months ended September 30, 2019, total revenue was $209.4 million, an increase of 37.7% compared to $152.1 million for the three months ended September 30, 2018; gross profit was $44.7 million, an increase of 22.0% compared to $36.7 million for the three months ended September 30, 2018; and net income attributable to Green Brick was $15.7 million, an increase of 28.5% compared to $12.2 million for the three months ended September 30, 2018.

• Residential units revenue for the three months ended September 30, 2019 was $199.9 million, an increase of 43.4% compared to $139.5 million for the three months ended September 30, 2018. Land and lots revenue for the three months ended September 30, 2019 was $9.5 million, a decrease of 24.7% compared to $12.6 million for the three months ended September 30, 2018.

• The dollar value of backlog units as of September 30, 2019 was $319.7 million, an increase of 3.5% compared to $309.0 million as of September 30, 2018.

• Average active selling communities increased from 72 communities as of September 30, 2018 to 80 communities as of September 30, 2019, an increase of 11.1%.

• Homes under construction increased to 1,306 as of September 30, 2019, a 17.3%increase compared to 1,113 as of September 30, 2018.

Results for the Nine Months Ended September 30, 2019:

• EPS for the nine months ended September 30, 2019 was $0.85, an increase of 11.8% compared to $0.76 for the nine months ended September 30, 2018.

• For the nine months ended September 30, 2019, total revenue was $561.5 million, an increase of 28.1% compared to $438.5 million for the nine months ended September 30, 2018; gross profit was $120.4 million, an increase of 9.1%, compared to $110.4 million for the nine months ended September 30, 2018; and net income attributable to Green Brick was $42.7 million, an increase of 11.7% compared to $38.3 million for the nine months ended September 30, 2018.

• Residential units revenue for the nine months ended September 30, 2019 was $536.6 million, a record for any nine-month period and an increase of 31.9% compared to $406.9 million for the nine months ended September 30, 2018. Land and lots

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revenue for the nine months ended September 30, 2019 was $25.0 million, a decrease of 21.0% compared to $31.6 million for the nine months ended September 30, 2018.

“We had a record-setting third quarter with EPS at its highest level at $0.31, up 29%, and with home closings revenue at a record $197 million, up 44%, both compared to the third quarter of 2018. Sales pace is typically slower when opening new neighborhoods. Even though we increased our community count by 13% during the third quarter of 2019, we increased our quarterly sales absorption pace per community by 34% year over year”, said Jim Brickman, CEO of Green Brick Partners, Inc.

“We continue to believe that our selling community count will grow about 21% this year compared to January 1, 2019. Our first time move-up and entry level builder, Trophy Signature Homes, is off to a wonderful start. As a result, we are staged for continued earnings growth in 2020. I want to remind investors that earnings are not created equally. Our earnings growth is possible despite having one of the least leveraged balance sheets in the industry where we enjoy not only lower levels of debt but that debt is at a lower cost than almost every small and mid-cap peer, as evidenced by the recent $75 million 4.00% seven-year unsecured notes that closed in the third quarter with Prudential Private Capital. Our interest coverage was over eight times our interest incurred, which is nearly double that of the next small-cap builder and about five times that of the typical small-cap peer.” Mr. Brickman continued, “During the third quarter of 2019, Fortune Magazine named Green Brick one of the 100 fastest growing companies in the world.”

Earnings Conference Call:

We will host our earnings conference call to discuss our third quarter ended September 30, 2019 at 12:00 p.m. Eastern Time on Friday, November 8, 2019. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 8092779. A replay of the call will be available from approximately 3:30 p.m. Eastern Time on November 8, 2019 through 11:59 p.m. Eastern Time on November 15, 2019. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 8092779.

Reconciliation of Non-GAAP Financial Measures:

In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company’s operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Reclassifications:

Beginning in the first quarter of 2019, the Company reclassified its sales commission expenses from cost of residential units to selling, general and administrative expense in the condensed consolidated statements of income in order to be more comparable with a majority of its peers. There was no impact to net income from the reclassification in any period. Following this reclassification, the Company’s adjusted homebuilding gross margin was 22.2% and 22.4% for the three and nine months ended September 30, 2019, respectively. Sales commission expenses represented 4.2% and 4.1% of the residential units revenue for the three and nine months ended September 30, 2019, respectively.

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GREEN BRICK PARTNERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Residential units revenue	$	199,918	$	139,459	$	536,560	$	406,903
Land and lots revenue	9,486		12,593		24,978		31,624
Total revenues	209,404		152,052		561,538		438,527
Cost of residential units	157,243		104,831		421,663		302,899
Cost of land and lots	7,436		10,553		19,503		25,255
Total cost of revenues	164,679		115,384		441,166		328,154
Total gross profit	44,725		36,668		120,372		110,373
Selling, general and administrative expense	25,078		19,643		71,104		57,790
Change in fair value of contingent consideration	1,492		—		1,749		—
Equity in income of unconsolidated entities	3,022		2,719		7,565		6,534
Other income, net	3,795		363		6,663		1,831
Income before income taxes	24,972		20,107		61,747		60,948
Income tax expense	5,833		4,734		14,993		13,341
Net income	19,139		15,373		46,754		47,607
Less: Net income attributable to noncontrolling interests	3,468		3,176		4,018		9,338
Net income attributable to Green Brick Partners, Inc.	$	15,671	$	12,197	$	42,736	$	38,269
Net income attributable to Green Brick Partners, Inc. per common share:
Basic	$	0.31	$	0.24	$	0.85	$	0.76
Diluted	$	0.31	$	0.24	$	0.84	$	0.75
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:
Basic	50,475		50,686		50,564		50,642
Diluted	50,597		50,778		50,642		50,760

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GREEN BRICK PARTNERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

	September 30, 2019			December 31, 2018
ASSETS
Cash	$	35,123		$	38,315
Restricted cash	6,109			3,440
Receivables	9,510			4,842
Inventory	740,799			668,961
Investment in unconsolidated entities	24,444			20,269
Right-of-use assets - operating leases	3,731			—
Property and equipment, net	4,192			4,690
Earnest money deposits	15,933			16,793
Deferred income tax assets, net	15,793			16,499
Intangible assets, net	728			856
Goodwill	680			680
Other assets	8,747			8,681
Total assets	$	865,789		$	784,026
LIABILITIES AND EQUITY
Liabilities:
Accounts payable	$	34,690		$	26,091
Accrued expenses	31,178			29,201
Customer and builder deposits	27,122			31,978
Lease liabilities - operating leases	3,837			—
Borrowings on lines of credit, net	164,792			200,386
Senior unsecured notes, net	73,358			—
Contingent consideration	2,110			2,207
Total liabilities	337,087			289,863
Commitments and contingencies
Redeemable noncontrolling interest in equity of consolidated subsidiary	12,209			8,531
Equity:
Green Brick Partners, Inc. stockholders’ equity
Preferred stock, $0.01 par value: 5,000,000 shares authorized; none issued and outstanding	—			—
Common stock, $0.01 par value: 100,000,000 shares authorized; 50,879,949 and 50,719,884 issued and 50,488,010 and 50,583,128 outstanding as of September 30, 2019 and December 31, 2018, respectively	509			507
Treasury stock, at cost, 391,939 and 136,756 shares as of September 30, 2019 and December 31, 2018, respectively	(3,167		)	(981		)
Additional paid-in capital	291,111			291,299
Retained earnings	220,262			177,526
Total Green Brick Partners, Inc. stockholders’ equity	508,715			468,351
Noncontrolling interests	7,778			17,281
Total equity	516,493			485,632
Total liabilities and equity	$	865,789		$	784,026

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GREEN BRICK PARTNERS, INC.

SUPPLEMENTAL INFORMATION

(Unaudited)

Residential Units Revenue and New Homes Delivered (dollars in thousands)	Three Months Ended September 30,								Nine Months Ended September 30,
	2019		2018		Change		%		2019		2018		Change			%
Home closings revenue	$	197,280	$	137,399	$	59,881	43.6	%	$	529,003	$	401,643	$	127,360		31.7	%
Mechanic’s lien contracts revenue	2,638		2,060		578		28.1	%	7,557		5,260		2,297			43.7	%
Residential units revenue	$	199,918	$	139,459	$	60,459	43.4	%	$	536,560	$	406,903	$	129,657		31.9	%
New homes delivered	443		312		131		42.0	%	1,205		905		300			33.1	%
Average sales price of homes delivered	$	445.3	$	440.4	$	4.9	1.1	%	$	439.0	$	443.8	$	(4.8	)	(1.1	)%

Land and Lots Revenue (dollars in thousands)	Three Months Ended September 30,									Nine Months Ended September 30,
	2019		2018		Change			%		2019		2018		Change			%
Lots revenue	$	9,486	$	9,092	$	394		4.3	%	$	24,968	$	24,294	$	674		2.8	%
Land revenue	—		3,501		(3,501		)	(100.0	)%	10		7,330		(7,320		)	(99.9	)%
Land and lots revenue	$	9,486	$	12,593	$	(3,107	)	(24.7	)%	$	24,978	$	31,624	$	(6,646	)	(21.0	)%
Lots closed	61		62		(1		)	(1.6	)%	166		163		3			1.8	%
Average sales price of lots closed	$	155.5	$	146.6	$	8.9		6.1	%	$	150.4	$	149.0	$	1.4		0.9	%

New Home Orders and Backlog (dollars in thousands)	Three Months Ended September 30,											Nine Months Ended September 30,
	2019			2018			Change			%		2019		2018		Change		%
Net new home orders	436			297			139			46.8	%	1,334		1,118		216		19.3	%
Cancellation rate	12.6		%	16.8		%	(4.2		)%	(25.0	)%	13.7	%	12.9	%	0.8	%	6.2	%
Absorption rate per average active selling community per quarter	5.5			4.1			1.4			34.1	%	5.5		5.7		(0.2	)	(3.5	)%
Average active selling communities	80			72			8			11.1	%	81		65		16		24.6	%
Active selling communities at end of period	85			75			10			13.3	%
Backlog	$	319,739		$	308,974		$	10,765		3.5	%
Backlog (units)	710			685			25			3.6	%
Average sales price of backlog	$	450.3		$	451.1		$	(0.8	)	(0.2	)%

	September 30, 2019		December 31, 2018
Lots owned
Central	4,415		4,447
Southeast	1,999		1,788
Total lots owned	6,414		6,235
Lots controlled
Central	1,315		853
Southeast	1,540		990
Total lots controlled	2,855		1,843
Total lots owned and controlled (1)	9,269		8,078
Percentage of lots owned	69.2	%	77.2	%

(1) Total lots excludes lots with homes under construction.

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Reconciliation of Non-GAAP Financial Measures

The following table represents the non-GAAP measure of adjusted pre-tax income for the three and nine months ended September 30, 2019 and 2018, which represents net income attributable to Green Brick for the period, excluding the provision for income taxes attributable to Green Brick and one-time transaction expenses related to a public secondary offering of the Company’s shares in 2018.

(Unaudited, in thousands):	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income attributable to Green Brick Partners, Inc.	$	15,671	$	12,197	$	42,736	$	38,269
Income tax expense attributable to Green Brick Partners, Inc.	5,743		4,746		14,753		13,230
Transaction expenses	—		—		—		827
Adjusted pre-tax income attributable to Green Brick Partners, Inc.	$	21,414	$	16,943	$	57,489	$	52,326

The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three and nine months ended September 30, 2019 and 2018 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

(Unaudited, in thousands):	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Residential units revenue	$	199,918		$	139,459		$	536,560		$	406,903
Less: Mechanic’s lien contracts revenue	(2,638		)	(2,060		)	(7,557		)	(5,260		)
Home closings revenue	$	197,280		$	137,399		$	529,003		$	401,643
Homebuilding gross margin	$	41,704		$	34,282		$	112,703		$	103,068
Add back: Capitalized interest charged to cost of revenues	2,183			957			5,553			2,582
Adjusted homebuilding gross margin	$	43,887		$	35,239		$	118,256		$	105,650
Adjusted homebuilding gross margin percentage	22.2		%	25.6		%	22.4		%	26.3		%

About Green Brick Partners, Inc.:

Green Brick Partners, Inc. (Nasdaq: GRBK) is a diversified homebuilding and land development company. Green Brick owns a controlling interest in five homebuilders in Dallas, Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Centre Living Homes, and Trophy Signature Homes), as well as 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. The Company is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master planned communities. For more information about Green Brick’s homebuilding partners and financial services platforms, please visit https://greenbrickpartners.com/team-builders/.

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Forward-Looking and Cautionary Statements:

Any statements in this press release about Green Brick’s expectations, beliefs, plans, objectives, prospects, financial condition, assumptions or future events or performance that are not historical facts are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “should,” “predicts,” “potential,” “expects,” “future,” “positioned,” “believes,” “projects,” “estimates” and similar expressions, as well as statements in the future tense. These statements are based on assumptions that Green Brick has made in light of its experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances, as of the date of this press release. All such forward-looking statements involve estimates and assumptions that are subject to factors that could cause actual results to differ materially from the results expressed in the statements, and you should not place undue reliance on any such forward-looking statements. Among the factors that could cause actual results to differ materially are the following: general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; the failure to recruit, retain and develop highly skilled and competent employees; management and integration of acquisitions; labor and raw material shortages; an inability to acquire land for reasonable prices; an inability to develop and sell communities; government regulation risks; mortgage financing availability and volatility; severe weather or natural disasters; difficulty in obtaining sufficient capital; poor relations with community residents; and our debt and related service obligations. Additional factors that could cause actual results to differ are discussed in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s annual and quarterly reports filed with the Securities and Exchange Commission. Green Brick undertakes no obligation to update any forward-looking statement except as required by law.

Contact: Richard A. Costello

Chief Financial Officer

(469) 573-6755

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EX-99.2

Trophy Signature Homes | Hollyhock, Frisco, TX Exhibit 99.2 Move-Up Series THIRD QUARTER INVESTOR CALL PRESENTATION 2019

FORWARD-LOOKING STATEMENTS This presentation and the oral statements made by representatives of the Company during the course of this presentation that are not historical facts are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “outlook,” “strategy,” “positioned,” “intends,” “plans,” “believes,” “projects,” “estimates” and similar expressions, as well as statements in the future tense. Although the Company believes that the assumptions underlying these statements are reasonable, individuals considering such statements for any purpose are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect the Company’s business prospects and performance, causing actual results to differ from those discussed during the presentation, and any such difference may be material. Factors that could cause actual results to differ from those anticipated are discussed in the Company’s annual and quarterly reports filed with the SEC. Any forward-looking statements made are subject to risks and uncertainties, many of which are beyond management’s control. These risks include the risks described in the Company’s filings with the SEC. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s actual results and plans could differ materially from those expressed in any forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements are made only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events. The Company presents Adjusted Pre-tax Income Attributable to Green Brick, Adjusted Pre-tax Income Attributable to Green Brick as a Percentage of Total Revenues, Pre-tax Income Return on Average Invested Capital (annualized), EBITDA, Net Income Return on Average Equity (annualized), and Adjusted Homebuilding Gross Margin. The Company believes these and similar measures are useful to management and investors in evaluating its operating performance and financing structure. The Company also believes these measures facilitate the comparison of their operating performance and financing structure with other companies in the industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP. Beginning in the first quarter of 2019, the Company reclassified its sales commission expenses from cost of residential units to selling, general and administrative expense in the consolidated statements of income. There was no impact to net income from the reclassification in any period. 2

MANAGEMENT PRESENTERS Jim Brickman Rick Costello Jed Dolson Chief Executive Officer Chief Financial Officer President of Texas Region • Over 40 years in real estate development • Over 26 years of financial and operating • Over 15 years of land development and and homebuilding. experience in all aspects of real estate property acquisition. management. • Co-founded JBGL with Greenlight Capital in • Head of GRBK land acquisitions since 2010. 2008. JBGL was merged into Green Brick in • Previously served as CFO and COO of GL 2014. Homes, as AVP of finance of Paragon Group • Masters Degree in Engineering, Stanford and as an auditor for KPMG. University, and Registered Engineer, State of • Previously served as Chairman and CEO of Texas. Princeton Homes and Princeton Realty Corp. • M.B.A from Northwestern University’s Kellogg School. BUILDING COMMUNITIES | DEVELOPING DREAMS 3

GREEN BRICK IS A DIVERSIFIED BUILDER WITH 8 BRANDS IN 4 MAJOR MARKETS Team Builders Market Products Offered Price Range Structure Townhomes $320k - $880k Atlanta, GA Single Family Consolidated(1) $340k - $840k Condominiums Financial Services Townhomes $240k - $430k Consolidated(1) / Dallas, TX Single Family $320k - $620k Townhomes Consolidated(1) Dallas, TX $350k - $800k 49% ownership Single Family Consolidated(1) Dallas, TX Luxury Homes $550k - $750k 100% ownership Single Family Consolidated(2) Vero Beach, FL $200k - $675k Patio Homes Townhomes Colorado Springs, CO $250k - $600k Equity Interest(3) Single Family Consolidated(4) Dallas, TX Single Family $199k - $500k (1) GRBK receives lot sale profits and lending profits before non-controlling interests participate in profits (2) 80% ownership (3) 49.9% ownership with contractual pathway to control (4) 100% ownership BUILDING COMMUNITIES | DEVELOPING DREAMS 4

MARKET UPDATE – JOB GROWTH National Economic Overview Top Job Growth Markets Ranked by Change in Employment, TTM August 2019 Rank MSA Employment Growth Growth % 1 New York-Newark-Jersey City, NY-NJ-PA 9,938,000 134,200 1.4 % 2 Dallas-Fort Worth-Arlington, TX 3,810,900 115,800 3.1 % 3 Houston-The Woodlands-Sugar Land, TX 3,166,900 81,900 2.7 % 4 Los Angeles-Long Beach-Anaheim, CA 6,202,900 71,600 1.2 % 5 Seattle-Tacoma-Bellevue, WA 2,122,600 63,200 3.1 % 6 San Francisco-Oakland-Hayward, CA 2,508,800 59,100 2.4 % 7 Phoenix-Mesa-Scottsdale, AZ 2,160,400 57,600 2.7 % 8 Miami-Fort Lauderdale-West Palm Beach, FL 2,725,800 53,100 2.0 % 9 Orlando-Kissimmee-Sanford, FL 1,347,400 51,600 4.0 % 10 Chicago-Naperville-Elgin, IL-IN-WI 4,830,400 47,500 1.0 % 11 Atlanta-Sandy Springs-Roswell, GA 2,848,100 42,500 1.5 % 12 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2,960,500 41,500 1.4 % 13 Riverside-San Bernardino-Ontario, CA 1,530,200 37,300 2.5 % 14 Washington-Arlington-Alexandria, DC-VA-MD-WV 3,334,700 33,600 1.0 % 15 Denver-Aurora-Lakewood, CO 1,547,700 29,600 1.9 % Source: Metrostudy, August 2019 BUILDING COMMUNITIES | DEVELOPING DREAMS 5

MARKET UPDATE - STARTS We are 2% to 5% of the starts in three of the largest housing markets in the U.S., giving us significant opportunity for growth National Housing Market Annual Starts by Market – TTM September 2019 40,000 35,000 33,572 30,000 29,435 25,000 26,380 25,461 24,095 20,000 19,703 17,562 15,000 16,717 14,499 10,000 13,135 5,000 Denver/ Northern Southern Colorado Phoenix/ Central Dallas /Ft. San Antonio California California Austin Springs* Atlanta Tucson Florida Houston Worth 0 Source: Metrostudy, September 2019 *GRBK has also entered the Colorado Springs market through our unconsolidated investment in Challenger Homes. BUILDING COMMUNITIES | DEVELOPING DREAMS 6

LAND POSITION Land is well positioned in attractive submarkets Atlanta Metro Area Dallas Metro Area Submarket Grades GRBK Locations Most desirable Desirable area Median desirability More affordable Most affordable Land position highlights 85 36* 92 Active selling communities Communities Projected active selling communities as of 9.30.19 under development expected by either *Includes 26 communities under active development and 10 communities in the engineering phase (i.e. pre-development) 12.31.19 or 3.31.20 Source: John Burns Real Estate Consulting (Regional Analysis and Forecast Published October 2019) Note: GRBK Locations are approximately to scale BUILDING COMMUNITIES | DEVELOPING DREAMS 7

SUSTAINED GROWTH THROUGH PRUDENT LAND DEVELOPMENT We have the strong balance sheet and operational excellence for continued growth LTM Total Revenue and End of Period Lot Supply for Green Brick Partners* September 2019 800,000 10000 9000 700,000 8000 600,000 7000 500,000 6,414 6000 400,000 6,235 5000 Lots Dollars($) 4,495 4000 300,000 4,235 3,650 3000 200,000 3,316 2000 2,855 100,000 1,724 1,843 1000 840 1,084 954 - 0 12.31.11 12.31.12 12.31.13 12.31.14 12.31.15 12.31.16 12.31.17 12.31.18 9.30.19 Lots Controlled Lots Owned Total Revenue * Revenue information prior to October 27, 2014 are from JBGL Builder Finance, LLC and its consolidated subsidiaries and affiliated companies, whose assets were acquired by GRBK on October 27, 2014. BUILDING COMMUNITIES | DEVELOPING DREAMS 8

GROWTH DRIVERS Green Brick continues to demonstrate industry-leading growth with industry-low financial leverage Total Revenue ($ in Millions) Backlog ($ in Millions) Lots Owned and Controlled $800 $350 10000 $700 $300 $746.7 $319.7 8000 9,269 $600 $250 $500 $200 6000 $400 $150 $300 4000 $100 $200 + + + + + + 30% YOY 30% YOY 88% YOY 3% YOY 2000 42% YOY 14% YOY $100 $50 $0 $0 0 LTM 9.30.2017 LTM 9.30.2018 LTM 9.30.2019 9.30.2017 9.30.2018 9.30.2019 9.30.2017 9.30.2018 9.30.2019 Average Selling Communities Units Started LTM Units Under Construction 90 2000 1400 1200 1,306 75 81 1,781 1500 1000 60 800 45 1000 600 30 400 +23% YOY +25% YOY 500 +41% YOY +24% YOY +56% YOY +17% YOY 15 200 0 0 0 YTD 9.30.2017 YTD 9.30.2018 YTD 9.30.2019 LTM 9.30.2017 LTM 9.30.2018 LTM 9.30.2019 9.30.2017 9.30.2018 9.30.2019 BUILDING COMMUNITIES | DEVELOPING DREAMS 9

GREEN BRICK IS A DIVERSIFIED BUILDER Rapidly expanding into entry-level and first-time move-up homes with over 1,600 newly acquired homesites for Trophy Signature Homes Home Closings Revenue Revenue in Millions, ASP in Thousands Townhomes, Condominium, Single-Family Total and Attached Homes $450 $450 $800 $436.0 $400 $400 $700 $698.5 $350 $350 $600 $300 $300 $500 $535.1 $250 $250 $270.3 $264.8 $262.5 $400 $232.5 $419.2 $200 $200 +28% YOY +31% YOY $186.7 +42% YOY -1% YOY + 16% YOY +61% YOY $300 $150 $150 $200 $100 $100 $50 $50 $100 $0 $0 $0 LTM 3Q17 (45% of total) LTM 3Q18 (49% of total) LTM 3Q19 (38% of total) LTM 3Q17 (55% of total) LTM 3Q18 (51% of total) LTM 3Q19 (62% of total) LTM 3Q17 (ASP $430.8) LTM 3Q18 (ASP $446.7) LTM 3Q19 (ASP $440.2) BUILDING COMMUNITIES | DEVELOPING DREAMS 10

HOMEBUYER CUSTOMER DIVERSIFICATION IN TEXAS, GEORGIA, & FLORIDA MARKETS We also manage risk by diversifying our homebuyer customer mix Homebuyer Customer Mix LTM GRBK Homebuilding Revenues by Product Type LTM 9.30.17 Homebuilding Revenues LTM 9.30.18 Homebuilding Revenues LTM 9.30.19 Homebuilding Revenues 4% 3% 6% 16% 15% 11% 16% 44% 28% YOY 31% YOY Growth Growth 46% 40% 34% 34% 30% Total: $419.2M Total: $535.1M Total: $698.5M Suburban Townhouse Second Time Plus Move-Up First Time Move-Up Age Targeted Urban BUILDING COMMUNITIES | DEVELOPING DREAMS 11

GREEN BRICK RECENT NEWS Recent Developments and Press Releases June 2019 • The Providence Group of Georgia announces new 122-home community in Alpharetta, GA. • Green Brick Partners’ subsidiary, CB JENI Homes, announces Terraces of Las Colinas, a new 79-townhome community in Irving, TX. $610.0 $462.6 July 2019 $391.9 • New Cibolo Hills development to add 350 homes for Trophy Signature Homes growth. • The Providence Group of Georgia announces Haynes Bridge, its newest community in Gwinnett County, GA with 250 planned homesites. +18% YOY +32% YOY August 2019 • Green Brick Partners issues $75.0 million of senior unsecured notes due in 2026 at a fixed rate of 4.00% per annum to Prudential Private Capital in a Section 4(a)(2) private placement transaction. • Southgate Homes expands into Lucas, TX with new Brockdale Estates, a 43-home community. September 2019 • Green Brick Partners makes Fortune's list of 100 Fastest Growing Companies in the world. • Appen Media Group awards Best Home Builder to The Providence Group of Georgia. BUILDING COMMUNITIES | DEVELOPING DREAMS 12

GREEN BRICK CLOSES $75 MILLION 4.00% SENIOR UNSECURED NOTES Notes will fund future growth at long-term rates significantly lower than peers • On August 8, 2019, we closed a $75.0 million private placement of senior unsecured notes due in 2026 with Prudential Private Capital, one of the world’s largest and most reputable financial institutions. • The Company does not expect to have the need to access the public debt markets for several years. • Our superior credit metrics allowed us to price 7-year notes at a fixed rate of 4.00%. This rate is only slightly higher than the long-term rates paid by the lower-leveraged large-cap builders and more attractive than the long-term rates paid by all small-cap and all mid-cap builders. +51% YOY GRBK Average Small-Cap Peers(1) Lennar(2) Pulte(3) Years Remaining 7.0 6.8 6.8 6.6+32% YOY Coupon Rate 4.0% 6.3% 5.3% 5.5% Yield to Maturity 4.0% 6.2% 4.1% 4.0% Debt Rating (S&P) N/A B- to BB- BB+ BB+ (1) Average Small Cap Peers represent senior notes issued by BZH, CCS, LGIH, and WLH from 5.30.17 through 5.23.19 (2) Analysis based on senior notes issued 6.11.2018 (CUISP 526057CT9) (3) Analysis based on senior notes issued 3.01.2016 (CUISP 745867AW1) Source: Bloomberg, public filings; Pricing as of August 1, 2019 BUILDING COMMUNITIES | DEVELOPING DREAMS 13

FINANCIAL HIGHLIGHTS (Unaudited) Qtr over Qtr Yr over Yr (Dollars in Millions, Except EPS) Q3 2019 Q3 2018 2019 YTD 2018 YTD Notes Change Change New Homes Delivered 443 312 42.0% 1,205 905 33.1% record for any quarter Net New Home Orders 436 297 46.8% 1,334 1,118 19.3% Net Orders Per Community Per Quarter 5.5 4.1 34.1% 5.5 5.7 (3.5)% Residential Units Revenue $199.9 $139.5 43.4% $536.6 $406.9 31.9% record for any quarter Total Revenues $209.4 $152.1 37.7% $561.5 $438.5 28.1% record for any quarter Backlog $319.7 $309.0 3.5% Average Selling Communities 80 72 11.1% 81 65 24.6% driver for growth for 2020 Net Debt to Capital 28.5% 26.8% increase in financial leverage w/ inexpensive debt Total Lots Owned and Controlled 9,269 8,101 14.4% driver for growth for 2020 Units Under Construction 1,306 1,113 17.3% driver for growth for 2020 Last 12 Months Construction Starts 1,781 1,441 23.6% driver for growth for 2020 Homebuilding Gross Margin 21.1% 25.0% (3.9)% 21.3% 25.7% (4.4)% Adjusted Homebuilding Gross Margin 22.2% 25.6% (3.4)% 22.4% 26.3% (3.9)% Net Income Attributable to Noncontrolling Interests as % of Residential 1.7% 2.3% (0.6)% 0.7% 2.3% (1.6)% Units Revenue Adjusted Pre-tax Income Attributable to GRBK $21.4 $16.9 26.4% $57.5 $52.3 9.9% Adjusted Pre-Tax Income as % of Total Revenues 10.2% 11.1% 10.2% 11.9% 6.30.19 median small cap 5.6% / median mid-cap 8.3% Adjusted Pre-Tax Income Return on Average Invested Capital* 11.6% 10.7% 10.8% 11.7% 6.30.19 median small cap 5.3% / median mid-cap 7.6% EBITDA $24.5 $18.8 30.2% $65.9 $57.2 15.1% Basic EPS $0.31 $0.24 29.2% $0.85 $0.76 11.8% Q3 2019 was record EPS for any quarter with 29% YOY growth Net Income Attributable to GRBK $15.7 $12.2 28.5% $42.7 $38.3 11.7% 6.30.19 median small cap 9.2% / median mid-cap 12.3% who all have Net Income Return on Average Equity* 12.5% 10.9% 14.7% 11.7% 11.7% −% much more leverage *Annualized BUILDING COMMUNITIES | DEVELOPING DREAMS 14

PRE-TAX RESULTS EXCEED PEER SMALL-CAP AND MID-CAP BUILDERS Green Brick achieves a return on invested capital that exceeds our peers Green Brick Q3 2019 KPIs vs Peer Median by Market Capitalization, Last Twelve Months 1 2 15.0% GRBK Median Small Cap Median Mid Cap 12.3% 11.6% 10.0% 10.6% 10.0% 9.2% 8.3% 7.6% 5.0% 5.6% 5.3% 0.0% AdjustedPretax Pre-tax Income Income % %of of Total Total Revenues Revenues AdjustedPre-Tax Pre Income-tax Income % of % Average of Average Invested Invested Capital Capital NetNet Income Income Return Return onon AvAverageerage Equity Equity Source: Company data. (1) Small Cap peers include BZH, CCS, LGIH, MHO, and WLH; data for peers is through 6.30.19 (2) Mid Cap peers include MDC, KBH, MTH, and TMHC; data for peers is through 6.30.19 BUILDING COMMUNITIES | DEVELOPING DREAMS 15

BALANCE SHEET STRENGTH Unlike most peers, our conservative financial leverage allows us to continue high margin growth. • GRBK Net Debt* to Capital is 28.5% as of September 30, 2019 versus an average 44.2% for covered public builders (Peer data as of 6.30.19) Net Debt* to Total Capital Q3 2019 70.0% 60.9% 57.8% 56.6% 48.6% 47.2% 44.1% 43.3% 39.4% 35.5% 33.4% 31.6% 29.5% 28.5% 21.2% BZH WLH NWHM CCS LGIH MHO TMHC KBH LEN TOL MTH PHM MDC GRBK DHI Source: Public filings of each peer company * ”Net Debt” equals total debt minus cash. Total capital equals net debt plus stockholder’s equity excluding equity attributable to noncontrolling interests. BUILDING COMMUNITIES | DEVELOPING DREAMS 16

DRIVERS FOR INCREASE IN RETURN ON EQUITY With significant growth drivers in place, Green Brick can enhance future returns on equity through: • Modest increase in debt to capital up to 35%. Consolidated debt is priced significantly less than most small-cap peers and mid-cap peers. • Scale our SG&A leverage by controlling corporate overhead growth while our Team Builders experience top-line growth. • Expand the breadth of our existing financial services platforms. • Increase operating efficiencies at the Team Builder level. • Expand Trophy Signature Homes into new markets. BUILDING COMMUNITIES | DEVELOPING DREAMS 17

APPENDIX BUILDING COMMUNITIES | DEVELOPING DREAMS 18

NON-GAAP RECONCILIATION Adjusted Homebuilding Gross Margin Reconciliation Twelve Twelve Twelve Three Months Three Months Nine Months Nine Months Months Months Months (Unaudited, in Thousands) Ended Ended Ended Ended Ended Ended Ended September September September September September September September 30, 2019 30, 2018 30, 2019 30, 2018 30, 2019 30, 2018 30, 2017 Residential Units Revenue $199,918 $139,459 $536,560 $406,903 $708,550 $541,412 $424,228 Less: Mechanic’s Lien Contracts Revenue (2,638) (2,060) (7,557) (5,260) (10,013) (6,304) (5,072) Home Closings Revenue $197,280 $137,399 $529,003 $401,643 $698,537 $535,108 $419,156 Homebuilding Gross Margin $41,704 $34,282 $112,703 $103,068 Add Back: Capitalized Interest Charged to Cost of Revenues 2,183 957 5,553 2,582 Adjusted Homebuilding Gross Margin $43,887 $35,239 $118,256 $105,650 Adjusted Homebuilding Gross Margin Percentage 22.2% 25.6% 22.4% 26.3% BUILDING COMMUNITIES | DEVELOPING DREAMS 19

NON-GAAP RECONCILIATION Adjusted GRBK Pre-tax Income as a Percentage of Total Revenues and GRBK Pre-tax Income Return on Average Invested Capital Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Twelve Months Ended (Unaudited, in Thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 September 30, 2019 Net Income Attributable to Green Brick $15,671 $12,197 $42,736 $38,269 $56,090 Income Tax Expense Attributable to Green Brick 5,743 4,746 14,753 13,230 18,507 Transaction Expenses — — — 827 — Adjusted Pre-tax Income Attributable to Green Brick $21,414 $16,943 $57,489 $52,326 $74,597 Total Revenues $209,404 $152,052 $561,538 $438,527 $746,658 Adjusted Pre-tax Income Attributable to Green Brick as a % of Total Revenues 10.2% 11.1% 10.2% 11.9% 10.0% Beginning Total Green Brick Stockholders’ Equity $493,470 $443,324 $468,351 $416,347 $455,686 Ending Total Green Brick Stockholders’ Equity 508,715 455,686 508,715 455,686 508,715 Average Total Green Brick Stockholders’ Equity $501,093 $449,505 $488,533 $436,017 $482,201 Beginning Debt $232,657 $167,600 $200,386 $115,699 $200,010 Ending Debt 238,150 200,010 238,150 200,010 238,150 Average Debt $235,404 $183,805 $219,268 $157,855 $219,080 Adjusted Pre-tax Income Attributable to Green Brick $21,414 $16,943 $57,489 $52,326 $74,597 Divided by: Average Invested Capital 736,496 633,310 707,801 593,872 701,281 Multiplied by: Annualization Factor 4 4 1.33 1.33 1 Adjusted Pre-tax Income Return on Average Invested Capital, Annualized 11.6% 10.7% 10.8% 11.7% 10.6% BUILDING COMMUNITIES | DEVELOPING DREAMS 20

NON-GAAP RECONCILIATION EBITDA Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (Unaudited, in Thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Adjusted Pre-tax Income Attributable to Green Brick $21,414 $16,943 $57,489 $52,326 Add Back: Capitalized Interest Charged to Cost of Revenues 2,324 1,114 5,919 3,079 Add Back: Depreciation and Amortization Expense 765 766 2,443 1,804 EBITDA $24,503 $18,823 $65,851 $57,209 BUILDING COMMUNITIES | DEVELOPING DREAMS 21

NON-GAAP RECONCILIATION Net Income Return on Average Equity Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Twelve Months Ended (Unaudited, in Thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 September 30, 2019 Net Income Attributable to Green Brick $15,671 $12,197 $42,736 $38,269 $56,090 Beginning Total Green Brick Stockholders’ Equity $493,470 $443,324 $468,351 $416,347 $455,686 Ending Total Green Brick Stockholders’ Equity 508,715 455,686 508,715 455,686 508,715 Average Total Green Brick Stockholders’ Equity $501,093 $449,505 $488,533 $436,017 $482,201 Net Income Attributable to Green Brick $15,671 $12,197 $42,736 $38,269 $56,090 Divided by: Average Total Green Brick $501,093 $449,505 $488,533 $436,017 $482,201 Stockholders’ Equity Multiplied by: Annualization Factor 4.00 4.00 1.33 1.33 1.00 Net Income Return on Average Equity, 12.5% 10.9% 11.7% 11.7% 11.6% Annualized BUILDING COMMUNITIES | DEVELOPING DREAMS 22

The Providence Group of Georgia| East of Main, Alpharetta, GA Award-Winning Luxury Single-Family and Townhomes THIRD QUARTER INVESTOR CALL PRESENTATION 2019 2805 Dallas Parkway, Suite 400 Plano, Texas 75093 | www.greenbrickpartners.com

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Document and Entity Information Document And Entity Information	Nov. 07, 2019
Entity Information [Line Items]
Document Period End Date	Nov. 07, 2019
Written Communications	false
Written Communications	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Entity Registrant Name	Green Brick Partners, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-33530
Entity Tax Identification Number	20-5952523
Entity Address, Address Line One	2805 Dallas Pkwy
Entity Address, Address Line Two	Ste 400
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75093
City Area Code	(469)
Trading Symbol	GRBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001373670
Amendment Flag	false
Document Type	8-K
Local Phone Number	573-6755