Green Brick Partners, Inc. (NYSE:GRBK) Q4 2022 Earnings Call Transcript

Jim Brickman: Our General Counsel just came from a presentation this morning. And he’s €“ of course, they were very optimistic. I think they had 18 companies still looking €“ moving in the Dallas-Fort Worth area.

Jay McCanless: Okay. That’s great. And then for a second, on the acquisition you mentioned, Jim. We’ve been hearing banks potentially pulling back and putting builders, private builders, maybe into making them pull more skin in the game. I guess, have you seen the potential deal flow pick up? What are you seeing happen with your private competitors? And then any color you could give us on this acquisition you might be considering?

Jim Brickman: Well, the three or four kind of brokers really quit showing any transactions two or three years ago because they knew we were going to pay big premiums for businesses. The deal we’re looking at is, what I would consider as a low probability. It’s an off-market deal. And really, I can’t speak any more than that. I wouldn’t make any investment decisions by Green Brick stock and an acquisition occurring. I can tell you we are aggressively looking at expanding into a new market if we can get a good foothold on buying land. That kind of dovetails to the back end of your question and the banks are being much more restrictive in how they do lending right now. And we think that’s great for our business because the equity requirements are so huge that we think we have a real advantage in going after some larger land acquisitions not only in Dallas, but potentially in new markets.

We just put two nice-sized deals under contract in Texas. One was a $32 million deal, the other was a $21 million deal. And those just are not the, kind of deals that you’re going to see large private builders and many public builders want to take a bite on right now.

Jay McCanless: Great. That’s all I have. Thank you.

Operator: Alright. And there are no further questions. I would like to turn the call back over to our presenters for any additional or closing remarks.

Jim Brickman: I just appreciate everybody’s interest in our company. And we hope really some people will come visit us, see what we’re doing, see our different price points, our products and really see the Trophy story because that’s going to be really the anchor for our growth strategy going forward. And I appreciate everybody’s interest.

Operator: Thank you. And that does conclude today’s presentation. Thank you for your participation, and you may now disconnect.