Landsea Homes Q3 2022 Corporate Newsletter

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STRONG

PROFITABILITY Letter from Our CEO

LANDSEA MORTGAGE Powered by NFM Lending

A SEASON

OF OPENINGS AND BIG WINS

ARIZONA

FLORIDA

Doug Rossum

Nichola Mitchell

Superintendent

Malorie Baker

Customer Care Field Manager

Tracy Grenier

Customer Care Field Manager

Brennen Dobson

Vice President of Operations

Fontane Nyariri

Vice President, Controller

Tim Tassone

Vice President, Financial Planning and Analysis

Sales Counselor

Kelly McQuade Sales Counselor

Britney Hickcox

Purchasing Coordinator

Cecille Drouillard HR Representative

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KUDOS

Letter from Our CEO

STRONG PROFITABILITY

THIS QUARTER FOR LANDSEA HOMES Landsea Homes posted strong profitability in the third quarter. We delivered a record 543 homes during the quarter of with ASPs increasing 9% year over year to $601,000. This produced a 56% improvement in our top line with revenue growing to $335.6 million year over year. We have 1,285 homes in backlog worth a little over $740 million in value, a volume increase of 18% over third quarter of last year and a 22% increase in dollar value. This backlog puts us in a great position heading into the end of the year. Our diversification strategy continues to show results with a more balanced performance across California, Arizona and Florida, contributing 36%, 21% and 32% of our revenue, respectively.

I want to thank all our team members for producing such great results this quarter and for executing at a high level despite continued operational headwinds.

Although we produced exceptional results this quarter, we, along with the rest of the homebuilding industry, continue to face headwinds. As has been widely reported, the recent runup in mortgage rates has resulted in a difficult sales environment for our industry. To address some of these industry challenges, we have taken steps to simplify the home buying process to make it as seamless as possible for buyers. We have teamed up with our mortgage affiliate, Landsea Mortgage, to provide products that help buyers get the payments they need to move in, including

Total Company Q3 Sales & Closings

rate locks and attractive pricing on quick move-in homes.

In addition to the adjustments we are making on the sales front, the other core tenets of our strategy moving forward will be to focus on streamlining our cost structure and to remain disciplined on the land front. Over the last few years, we have incurred significant increases to our building costs, due to the upwardly trending housing market. Now that conditions have softened, we will be working with our suppliers and trade partners to make sure that the prices we pay for labor and materials reflect today’s market dynamics.

While we expect the sales environment to remain challenging in the near term, we remain optimistic about the outlook for the industry and our company over the long term. There continues to be a lack of existing home inventory in our markets, particularly at the more affordable price points, and the cost of rental alternatives remains high.

In addition, we continue to see a strong desire for homeownership from the Millennial buyer cohort, which is looking for the personalization and stability that a new home provides.

We believe that Landsea Homes is well positioned to take advantage of these trends by focusing on the more affordable segments of the market and by offering homebuyers the latest in new home innovations through our High Performance Homes. We feel

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I believe we have the right strategic focus, financial strength and operational expertise to adapt to the changing market and finish this year strong.

our unique new home offerings are a true differentiator in our markets and provide a clear competitive advantage.

I am proud of the accomplishments we have achieved year to date. From our team of veteran managers to sales counselors and superintendents at our communities, you have done an outstanding job this past quarter. I believe we have the right strategic focus, financial strength and operational expertise to adapt to the changing market and finish this year strong. I look forward to working hard with everyone this fourth quarter and putting us in a stronger position to enter 2023.

Sincerely, John Ho John Ho, CEO

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INTRODUCING

We proudly introduced Landsea Mortgage powered by NFM Lending on July 6, 2022! Our focus continues to be on providing exceptional customer service for homebuyers, and this now includes offering home financing options that best fit their needs and lifestyle.

ONLINE RESOURCES

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CLICK TO VIEW WEBSITE >

Why Now Is a Pre-Qualification Good Time to Buy

Extended Personalized Loan RateOptions Locks

MORTGAGE MINUTE VIDEOS

HOME BUYING MADE EASY Say hello to all the tools you’ll need to make home buying easier than ever. We’ve gathered helpful tips from the Landsea Mortgage experts so you’re only a click away from making your new home dreams come true. Explore the videos below, and you’ll be a pro in no time.

Why Now Is a Good Time to Buy

Extended Rate Locks WATCH VIDEO

WATCH VIDEO

Renting vs.Buying WATCH VIDEO

PRE-QUALIFY TODAY CALL (888) 577-5977 VIEW ALL VIDEOS

LandseaHomes.com © 2022 Landsea Homes Corporation. All rights reserved. LANDSEA® and LIVE IN YOUR ELEMENT® are federally registered trademarks of Landsea. Landsea Mortgage is a division of NFM, Inc. dba NFM Lending, NFM NMLS #2893. This is a co-marketing piece with Landsea Homes US Corporation (“Seller”).

Landsea Mortgage has a financial relationship with Landsea Home Loans, and you may choose not to use Landsea Mortgage in connection with the purchase of a Landsea home. You are entitled to shop around for the best lender/real estate company for you. Landsea Mortgage is an equal housing lender. For full agency and state licensing information, please visit www.nfmlending.com/licensing. NFM, Inc.’s NMLS #2893 (www.nmlsconsumeraccess.

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BOOMING

INTEREST ACROSS COMMUNITIES With the grand openings of the models at Ellis in Tracy and Lavender in Sunnyvale, as well as active marketing for Verandah in Novato, the interest for these communities continues to grow in a changing market. The team hosted a model grand opening at Lavender on July 30, where almost 100 prospective buyers got to tour the models, meet the team and enjoy treats. The model grand opening of Ellis in Tracy was held in early September with over 180 people in attendance. Many were drawn to the community after hearing about it through social media and email marketing. Kudos to the team for continually reaching out to new buyers while nurturing interest for those who’ve been waiting for the models to arrive.

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HAPPENINGS BIA Back to School Drive – 7/28 The NorCal division collectively donated backpacks and school supplies to underprivileged youth.

Chiara Basso and Tiffany Boyd helped assemble the backpacks.

All Hands Event – 7/20 The division got together at Topgolf and enjoyed some friendly competition, food, drinks, prizes and a presentation. A good time was had by all!

Eliant Survey Sweepstakes Winner Relevae homeowner Lawrence Koh was announced as the lucky sweepstakes winner for helping us improve customer service by providing feedback on how his move-in, mid-year and year-end experiences went with our team.

Oktoberfest Zero Breast Cancer Fundraiser – 9/30 The team hosted a booth at the Oktoberfest Fundraiser at Rolling Hills Club in Novato to promote Verandah and build awareness for Landsea Homes.

MEMORABLE MARKETING

The promotion of spotlight homes in all active communities has seen great success in attracting new buyers and promoting urgency with prospects who may have been on the fence about purchasing. Way to go!

VIEW THE BLOG >

EMPLOYEE HIGHLIGHT

spotlight home at HARTWELL

Hartwell Plan 9 Model Bonus Room

Congratulations to new mama

Mia Montiel

and her new baby girl, Navia!

Hartwell Plan 9 Model Kitchen

WELCOME TO THE TEAM Marc Rico Vice President of Sales & Marketing

Don’t miss your chance to live in the coveted neighborhood of Hartwell at Ellis.

Exciting news at Hartwell by Landsea Homes!

This collection of one- and two-story homes offers the best in innovative design, spacious floor plans and everything your family needs.

Make your move today with this quick move-in home.

PLAN 9 – HOMESITE 283 4 Bedrooms

•

3 Bathrooms

•

3,057 Sq. Ft.

August Move-In WAS: $1,062,349 NOW: $999,349 Explore This Home

Learn More About Ellis and What Makes Landsea Homes 2022 Builder of the Year

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THREE NEW neighborhoods Single-Family Homes 2,107 to 2,587 Sq. Ft. • From the High $800,000s

CLOSINGS

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Single-Family Homes 2,382 to 2,894 Sq. Ft. • From the Mid $900,000s

Single-Family Homes 2,297 to 3,733 Sq. Ft. • From the High $900,000s

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2% Broker Co-Op + Up to $10,000 for Each Home Sold*

LUXURY

LIVING HAS ARRIVED AT PETRA The highly anticipated single-family homes at Petra in San Juan Capistrano have arrived. Within the first day of its first pre-sales release on September 14, 7 out of 10 homes released were sold. This is the first Landsea Homes community in south Orange County, close to downtown San Juan Capistrano, beaches, iconic recreation, unique dining, historical landmarks and so much more! The community truly embodies the local SoCal lifestyle, and the team is excited to build on the momentum of success at Avelina, an exclusive collection of 89 townhomes coming later this year.

CHECK OUT THE AREA >

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HAPPENINGS BIAOC Softball Tournament – 9/11 25 team members played in the BIAOC Softball Tournament, taking on industry leaders and other builders. It was a beautiful day for some friendly competition and team building!

House Club Broker Event – 8/31 Patrick Higgins, VP of Sales and Marketing, spoke at the broker event to promote Landsea Homes and discuss topics like how to sell new homes in this market by utilizing the right resources and working as a team with builders.

Hudson Broker Event Mixer – 9/7 Brokers toured Hudson and received a voucher for Brewery X in Anaheim to grab food and drinks while chatting with Landsea Mortgage and learning more about this new community in Placentia.

Superintendent Clay Hatch won the SoCal MAME Award for “Shining Star.”

Way to go, Clay!

KUDOS In the month of July, the SoCal team scored

91%

in Customer Satisfaction for the Move-In Experience and

100%

for the Year-End Experience on their Eliant surveys. Keep up the great work!

COMMUNITY UPDATES

Silveroak had its final closing at the end of September, signaling the close-out of the IronRidge master-planned community in Lake Forest, CA. Congratulations to the team on a successful five years of building this beautiful community! On to the next!

SKILL DEVELOPMENT Engineering 101 Trainings

Shannon Whittaker and Gary Bouck led a training for the field and office teams on soil engineering and how different types of soil impact the design of the homes we build. They also hosted a Civil Engineering 101 training, where they covered topics such as sewer and stormwater drainage system installation.

Sales and Closings Q3 2022

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CLOSINGS

SALES

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IT’S GRAND OPENING

SEASON The team was busy hosting grand openings for

three new communities in Q3: Rev at Eastmark in Mesa, Sunrise in Surprise and The Villages at North Copper Canyon | Canyon Series in Surprise.

Each community had its own festivities, including food trucks, balloon artists and even celebrity face painters featuring Disney princesses and Marvel superheroes. Homebuyers toured the models, learned about LiveFlex®, experienced High Performance Homes and talked to the Landsea Mortgage team about how to get started on their home buying journey.

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CLOSING IN ON CLOSINGS •

Both Highlands and Victory at Verrado closed out officially at the end of June. Way to go, team!

•

Madison Square and 14th at Town & Country in Phoenix held their grand opening in August 2021 and will finish the final home by the end of the year.

•

Greenpointe at Eastmark opened for virtual sales in early 2022 and just closed on its first three homes on September 30. Keep up the momentum!

KUDOS! Superintendents Troy Weber and Kevin Bath were featured on the Landsea Homes Instagram page.

CLICK TO VIEW >

CRY IN YOUR ELEMENT •

Congratulations to new mama Donna Sanford on her new baby boy, who was born in early August!

•

The sales team gathered and celebrated soon-to-be girl dad Kelly McQuade during one of their weekly sales meetings at the Scottsdale office.

Sales and Closings Q3 2022

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SALES

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A SEASON OF

BIG WINS! In an ever-changing market, the Florida division has boldly staked its claim as the winningest builder in Florida. Bringing home 13 wins at the Major Achievement Awards presented by the Greater Orlando Builders Association and being named “Best Builder” by Guide to Florida further solidifies the quality of the communities being built across central Florida and Landsea Homes’ dedication to providing the best home buying experience possible. All of these wins plus the continuous introduction of helpful new resources for homebuyers also further demonstrates why Landsea Homes was named “Builder of the Year” by Builder Magazine.

Keep up the great work!

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HAPPENINGS Taco Tuesday – 7/5 The sales managers gathered all of their New Home Sales Advisors for a Taco Tuesday in July to network.

Florida Virtual Town Hall – 8/12 The entire division met to summarize efforts as well as prioritize their strategy to meet their numbers for the rest of the year.

COMMUNITY UPDATES •

Wiregrass in St. Cloud sold out.

•

Orchid Terrace in Haines City officially closed out.

•

New Paige townhome model opened at Legacy Landings in Davenport on 7/30.

KUDOS! Way to go, Casey Raper, for providing the customer service every homeowner deserves!

“Our original builder, Casey, stepped in and got things done…he handled things professionally and would check up to make sure things were done correctly…You need more people working for you like this man...please give credit to [Casey]. Other home customers that we have met feel the same way about him.”

– Palm Coast Homeowner

Office Living Wall Reveal

MEMORABLE MARKETING

Best of Florida

Landsea Homes won “Best Builder” at the Major Achievement Awards by the Greater Orlando Builders Association.

Dash for Gas

Brokers were invited to participate in a touring event where they picked up gas gift cards at a selected community and continued visiting other communities in the area. At the end, the group enjoyed treats and raffle prizes.

WELCOME TO THE TEAM

A big welcome to all the new team members who joined the Landsea Homes family in Q3: Jeff Wochner – Division President Hector Lopez – Vice President of Sales and Marketing Andrew To – Purchasing Agent Sophie Brenner – Office Coordinator

Sales and Closings Q3 2022

Jake Penta – Senior Financial Analyst Jerry Garcia – Builder Jerry Rullo – New Home Sales Advisor Joshua Craig – Builder

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AN EMPHASIS ON

TEAM

GROUP OUTINGS The team enjoys getting together on Fridays at Aviator Pizza for team building and pizza, of course!

The Texas division traveled to Florence, TX, to tour Cobra Stone, slated as one of the division’s primary rock quarries. The trip was organized by VP of Purchasing Chris Warr as an opportunity for the team to become more knowledgeable about the product used in their communities.

WELCOME TO THE TEAM CHRISTOPHER BITTER | Land Acquisition Analyst SARAH WHETSTONE | Division Coordinator/HR Representative

Sales and Closings Q3 2022

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CLOSINGS

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10 SALES

WRAP! Avora The first Landsea Homes development on the East Coast, consisting of 183 LEED Certified condo homes with waterfront views and amenities, Avora has officially closed out! “The sellout of Avora is a testament to the great demand for our homes, and we’re thrilled knowing Avora residents will be living in their element for years to come,” said Mike Forsum, President and Chief Operating Officer. Congratulations to the NYC Metro division for this successful closeout!

FÖRENA

212W93

As of September 2022, FÖRENA is 90% sold out and 76% closed with five homes left to sell.

212W93 and four other new developments in the Upper West Side hosted a broker walking tour on September 15.

Sales and Closings Q3 2022

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SALES

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NYC METRO

THAT’S A

ARIZONA

TEXAS

BOSTON FOLLOW, LIKE, STAY CONNECTED

NYC METRO CALIFORNIA

FLORIDA 660 Newport Center Drive, Suite 300, Newport Beach, CA 92660 (949) 345-8080 info@landseahomes.com Nasdaq: LSEA