Landsea Homes Corporate Newsletter Q1 2024

Avery Centre in Round Rock, TX

A SOLID FIRST QUARTER FOR LANDSEA HOMES

We delivered strong top-line revenue growth of 22%, reaching $292.6 million in the first quarter, thanks to a 7% yearover-year increase in home closings and a 14% rise in average sales prices. Order activity during the quarter was solid, as we generated 612 orders at a sales pace of 3.3 homes per community, per month. We ended the quarter with 63 average selling communities, up 7% from the first quarter of last year. Thank you all for doing an excellent job in selling and closing homes.

We continue to see strong interest in our new homes across our markets and look to capitalize on this demand through our well-located communities and our desirable, high-performance home product line, which offers great value. The new home market continues to benefit from a lack of existing home inventory and pent-up demand from buyers motivated to own a home.

In April, we completed the acquisition of Dallas-based Antares Homes, which provided us with 20 communities and over 2,100 lots in the Dallas-Fort Worth area. We are extremely excited about what this acquisition means in terms of land and lots, as well as the talent and local market expertise it brings.

In the capital markets, we completed our inaugural placement of $300 million in senior notes due in 2029. This was a significant achievement for our company, allowing us to pay down a portion of the outstanding borrowings

under our revolving credit facility and providing us with longer-term fixed-rate capital to pursue our growth initiatives. Given the recent increase in interest rates since the deal closed, we felt fortunate to have placed these notes when we did.

One of our goals for the remainder of 2024 is to generate enough cash from operations to bring our net leverage down from current levels while continuing to invest in our homebuilding business. Over the last several quarters, we have made significant upfront investments in our operations, particularly in Texas and Colorado, and we are beginning to see a return on those investments as we continue to sell and close homes.

We accomplished a lot in the first quarter, both operationally and financially, and we feel we are in a great position to achieve our goals for 2024 and beyond. There is a lot to be proud of as we build on the success that we’ve already achieved this year. Your hard work and dedication are truly appreciated, and I look forward to working with you to make this year another remarkable one for Landsea Homes!

Sincerely,

John Ho

John Ho, CEO

Total Company Sales and Closings Q1 2024 612 505

We accomplished a lot in the first quarter, both operationally and financially, and we feel we are in a great position to achieve our goals for 2024 and beyond.

Eliant HomeBuyers' Choice Awards 2024

Eliant acknowledges outstanding customer experience in homebuilding. From the purchase and design experience to construction quality, service and communication, this year’s awards honored homebuilders that excelled at putting homebuyers first. Positive customer experience leads to more referral sales, better vendor and trade partnerships and happy homeowners.

Customer Service Leader of the Year

Dalia Diaz, Director of Customer Care, SoCal Division, was named "Customer Experience Leader of the Year"! Recognized for her above-and-beyond efforts to elevate the homebuyer experience, Dalia came out on top in more than just the mid- and year-end customer service scores. She also contributed to the overall divisional improvements last year. Way to go, Dalia! Thank you for your efforts in representing Landsea Homes on a national level and making a difference in providing exceptional customer experiences for our homebuyers.

DIVISION AWARDS

Landsea Homes was listed in the top five builders nationwide for the following categories at this year’s Eliant HomeBuyers' Choice Awards:

SoCal

Customer Service Representative Horacio Gutierrez Design Experience High-Volume

First-Year Customer Service High-Volume

NorCal

Percent of Sales from Referral Large-Volume

VOLUNTEER TIME OFF PROGRAM ACTIVITIES

At Landsea Homes, we value giving back to the communities where we work, live and build. Our Volunteer Time Off program encourages team members to use designated PTO to become involved in their communities. Shout out to the Arizona team, who donated over 215 hours of their time in 2023—we can’t wait to see what all our teams do in 2024!

• HomeAid Housing Paint-a-Thons

• Food Banks/Drives

• Wildlife Rescue

• Animal Shelter

• Volunteering

• Packing School Supplies for Underprivileged Youth

• Blanket and Diaper Drives

• HomeAid Bay Area Tiny Homes

MARINO WELLNESS

Every month, HR hosts a wellness webinar with special guest speakers who share their expertise in good nutrition, fighting burnout, overall health and wellness and so much more. Stay tuned for future events by visiting the HR Intranet.

Learn more >

PAST EVENTS

• Stress Less, Flow More

• Eating for Energy

• Money-Saving Tools

• Building Resilience

• Know Your Numbers

BLOSSOM AT BALDWIN RANCH GRAND OPENING

On Saturday, March 30, Landsea Homes’ newest NorCal community in Patterson, CA wowed prospective buyers with stylish model homes. A steady stream of visitors enjoyed open house–style tours throughout the day to discover what the master-planned community of Baldwin Ranch has to offer. The team saw plenty of interest, including eight reservations the first weekend and Landsea Mortgage clocking multiple prequalifications during the event. Congratulations to the team on a successful opening!

BUSY WITH THE BIA

• The team was busy getting involved in the Building Industry Association (BIA), kicking things off in January with the Installation of Officers event. Congratulations to Chiara Basso, who was ushered in as the Chair of Young Professionals of the BIA|Bay Area, and Jennifer Morse, who was elected Chair of the PASS committee!

• In February, Division President Josh Santos was a panelist at the BIA Diversity, Equity, Inclusion & Belonging (DEIB) event, where speakers promoted the importance of a more diverse, equitable and inclusive environment.

LAVENDER IS SOLD OUT!

The charming community of Lavender in Sunnyvale, CA officially sold out during Q1 2024 and is expected to close out later this year! This collection of 128 townhomes offered the perfect balance between big-city vibes and classic small-town living—while being close to exciting Bay Area attractions for homebuyers.

Sales and Closings Q1 2024

The Verandah team in Novato jumped on the latest social media trend to show off their individual roles in community management. Check them out!

CREATING COMMUNITIES

Bringing people to the Southern California communities to promote the lifestyle and new homes was a top priority for the division during Q1. In January, the teams at Hudson in Placentia and Avelina in San Juan Capistrano put on engaging referral events for homeowners and their friends with the help of local favorites like Hennessy's Tavern, which brought the spirit. In February, the Narra Hills team in North Fontana hosted a broker caravan event to give realtors in the area a chance to tour and create social media content in the stunning model homes.

The division enjoyed some friendly competition on Wednesday, February 14, at a Top Golf team-building event!

CUSTOMER SERVICE RECOGNITION

Dalia Diaz, Director of Customer Care, was announced as President of BIASC Customer Service Builders Council (CSBC)! In this new role, Dalia strives to invigorate the board, increase membership and refresh content to increase the added value for members.

Q1 ELIANT CUSTOMER SATISFACTION

Sales and Closings Q1 2024 Move-In = 83.4%

= 91.7%

= 90.2%

Referral Rate = 28%

Patrick Higgins, Vice President of Sales and Marketing, was a speaker at the BIA NextGen Evening Buzz, sharing insightful information on the beginning of his career and how he got to where he is today in the homebuilding industry.

MEMORABLE MARKETING

Sales Manager Parker Duarte and Marketing Manager Lauren Pacheco starred in a local-area video to show the attractions near eave at neuhouse in Ontario, CA. Take a look at their HGTV-worthy video!

CITRUS SEASON IN ARIZONA

Q1 was the season for citrus in Arizona, with the grand openings of both El Cidro and Citrus Park in Goodyear! At the end of January, the team hosted over 300 people at El Cidro where prospects enjoyed local treats and model tours. The homes were so popular, the on-site team wrote five sales during the grand opening weekend! In March, the master-planned community of Citrus Park opened its doors to eager homebuyers, too. Overall, the team saw lots of excitement about the new communities—we can’t wait to see what the future holds for these Goodyear lifestyle destinations!

GIVING BACK

• On February 19, Arizona employees volunteered their time to help set up the HomeAid Phoenix Trap Shoot event. Overall, the event raised over $233,000 for HomeAid Phoenix!

• On March 1, team members packaged 81 boxes for the organization, Feed My Starving Children. The boxes consisted of 17,496 meals and totaled over $5,000 dollars, feeding 47 kids a daily meal for a year. Way to go, team!

MEMORABLE MARKETING

As the division ramps up to the spring 2024 debut of their newest master-planned community in San Tan Valley, Arizona, we can’t help but draw attention to Wildera’s rare offering of 5-car garages with these new homes. This extra space is a huge perk for buyers, with room for hobby spaces and recreational aspirations of every kind.

Heather Cammiso, Division President, was initiated into the 2024 Board of Directors for the HBACA. Congrats to our visionary leader!

PARTNERSHIP

This is the year of giving back in Florida! The team started off strong with the HomeAid Builders Breakfast in February, where Landsea Homes was recognized for our dedication to helping address homelessness in Central Florida. In March, the team took time out of their day and participated in putting together over 500 hygiene kits of essential items to donate to the Rescue Outreach Mission of Sanford for those in need. Landsea Homes takes pride in its partnership with HomeAid and its affiliates, actively supporting their mission to end homelessness nationwide. We’re thrilled to see the action the Florida team is taking. SEE MORE! >

EXCEEDING SALES GOALS

During Q1, the sales teams were challenged to write 82 sales in the month of February. Mission accomplished! With a grand total of 83 sales, they won a well-deserved spa day at the Ritz-Carlton to unwind. Way to go, team!

MEMORABLE MARKETING

For the townhome product at Legacy Landings and Sky Lakes Estates, marketing was directed toward renters by highlighting affordable, low-maintenance living and the spacious floor plans offered in these communities.

The team stayed busy this quarter, hosting FOUR grand-opening events at new communities:

Storey Creek in Kissimmee

Eagle Crest in Grant-Valkaria

Marion Ridge in Haines City Country Club Estates in Palm Bay

In addition to opening communities, the team also hosted broker and referral events to ramp up traffic and encourage people to come out and see what Landsea Homes is all about.

Sales and Closings Q1 2024

In an effort to sell the final legacy homes in our Colorado communities, the team launched the “This or That New Homes Sales Event” marketing campaign, allowing buyers to choose between a fixed interest rate on move-in ready homes or a financial incentive on homes that close at a later date. These efforts led to a whopping 19 home sales and the closeout of Homestead in Brighton during Q1. The team is now revving up to introduce High Performance Homes to the Colorado market—we can’t wait!

14 MOVING INVENTORY COLORADO

GRAND OPENINGS WORTH CELEBRATING

Pintail Commons in Johnstown and Inspirada at Prairie Center Village in Brighton welcomed visitors as they grand opened their model homes at the beginning of Q2. These two communities offer spacious floor plans with modern designs and High Performance Home features like home automation and energy savings. The team is excited to show the Colorado region what Landsea Homes is all about!

HOMEAID PARTNERSHIP

ELIANT RECOGNITION

The division focused on increasing positive Eliant surveys throughout Q1. The following employees perfected a positive customer experience:

Jessica Badalamenti

Jeanee Dahl

Jared Saggau

Amy Armstrong

On February 15, team members attended HomeAid’s 25th Annual Breakfast, kicking off the Colorado division’s partnership with HomeAid to help those in the community who are experiencing, or at risk of, homelessness.

AUSTIN

The Austin division hosted a big bash for the grand opening event at Avery Centre in Round Rock on Saturday, February 17. Over 130 homebuyers and realtors stopped by for the Avery Centre Fest-themed extravaganza, eager to explore the new townhomes. With two sales made on the spot, it’s safe to say Avery Center was a major hit! At the end of March, 82 local realtors joined in on a realtor caravan tour of Avery Centre to see the features and floor plans, and learn about an exclusive, additional commission on homes sold by the end of May. The sales team received great feedback—many realtors couldn't wait to come back with their clients!

LARIAT'S FIRST CLOSING

First happy homeowners are in the books! The division celebrated its first closing at Lariat in Liberty Hill, and our onsite team went above and beyond to make sure our first homeowners enjoyed a smooth closing on their dream home!

LET’S GET TOGETHER

Team members attended the HBA Sporting Clay Shootout on March 21 and enjoyed the chance to network and build relationships with other industry professionals in the greater Austin area.

Yee-haw! Landsea Homes sponsored the 2024 Rodeo Austin and the entire team attended. They enjoyed rodeo favorites and a Jake Owen concert, too. Such a fun occasion!

Sales and Closings Q1 2024

EMPLOYEE SPOTLIGHT

In January, Division President Vince Ruffino and the Austin leadership team were thrilled to present Cody Holder with the “Q4 2023 Team Member of the Quarter” award. Cody was honored for going above and beyond during Lariat’s debut, making sure Landsea Austin's first community made a splash. He went all-out in supporting grand opening efforts, training new hires in construction and assisting in coming up with new frame-walk processes. He is a true Landsea Homes champion!

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"We toured Landsea Homes’ model homes and fell in love. Their service was fantastic, and they said, ‘let us help meet your goals.’ That was the difference between them and other homebuilders. It was night and day."

– Jacob and Nikki Morris

TEXAS-SIZED GROWTH

On April 1, Landsea Homes expanded our presence in Texas with the acquisition of Antares Homes. This is another step forward in our company goal of becoming one of Texas's top homebuilders. Known for specializing in quality, energy-efficient home construction and creating lifelong relationships with their homebuyers, Antares Homes is the perfect addition to the Landsea Homes family. This strategic expansion came with 19 communities located in 13 locations throughout the Dallas-Fort Worth area, including Fort Worth, Burleson, Crowley, Forney, Granbury, Midlothian and more.

In the News:

Green Home Builder >

The Dallas Express > Builder >

I am honored to serve as President of this new division at a public homebuilding company as esteemed as Landsea Homes. Our high-quality and attainably priced homes will resonate with new homebuyers who desire the opportunity to live in their element. I look forward to leading the Dallas-Fort Worth division and this important expansion of the Texas market.

– Melissa Kelly, Division President Dallas-Fort Worth

ARIZONA TEXAS COLORADO NYC METRO

FLORIDA