10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from — to —

Commission file number: 001-33530

Green Brick Partners, Inc.

 

(Exact name of registrant as specified in its charter)

Delaware				20-5952523
(State or other jurisdiction of incorporation)				(IRS Employer Identification Number)
5501 Headquarters Drive, Suite 300W
Plano	,	TX	75024	(469)	573-6755
(Address of principal executive offices, including Zip Code)				(Registrant’s telephone number, including area code)

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 New York Stock Exchange
Depositary Shares (each representing a 1/1000th interest in a share of 5.75% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share)	GRBK PRA	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The number of shares of the Registrant’s common stock outstanding as of July 25, 2024 was 44,496,772.

TABLE OF CONTENTS

PART I		FINANCIAL INFORMATION
	Item 1.	Condensed Consolidated Financial Statements (Unaudited)	1
		Condensed Consolidated Balance Sheets, June 30, 2024 and December 31, 2023	1
		Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023	1
		Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023	2
		Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	4
		Notes to Condensed Consolidated Financial Statements	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
	Item 4.	Controls and Procedures	32
PART II		OTHER INFORMATION
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
	Item 5.	Other Information	33
	Item 6.	Exhibits	33
		Signatures	34

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

GREEN BRICK PARTNERS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

	June 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	133,294	$	179,756
Restricted cash	24,882		19,703
Receivables	14,703		10,632
Inventory	1,792,056		1,533,223
Investments in unconsolidated entities	36,557		84,654
Right-of-use assets - operating leases	7,825		7,255
Property and equipment, net	6,975		7,054
Earnest money deposits	14,529		16,619
Deferred income tax assets, net	15,306		15,306
Intangible assets, net	324		367
Goodwill	680		680
Other assets	17,271		27,583
Total assets	$	2,064,402	$	1,902,832
LIABILITIES AND EQUITY
Liabilities:
Accounts payable	$	67,978	$	54,321
Accrued expenses	126,144		96,457
Customer and builder deposits	49,316		43,148
Lease liabilities - operating leases	8,756		7,898
Borrowings on lines of credit, net	(1,921)		(2,328)
Senior unsecured notes, net	311,398		336,207
Notes payable	95		12,981
Total liabilities	561,766		548,684
Commitments and contingencies
Redeemable noncontrolling interest in equity of consolidated subsidiary	38,883		36,135
Equity:
Green Brick Partners, Inc. stockholders’ equity
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	47,603		47,603
Common stock, $0.01 par value: 100,000,000 shares authorized; 44,897,775 issued and 44,594,451 outstanding as of June 30, 2024 and 45,005,175 issued and outstanding as of December 31, 2023, respectively	449		450
Treasury stock, at cost: 303,324 shares as of June 30, 2024 and none as of December 31, 2023	(17,192)		—
Additional paid-in capital	246,863		255,614
Retained earnings	1,161,512		997,037
Total Green Brick Partners, Inc. stockholders’ equity	1,439,235		1,300,704
Noncontrolling interests	24,518		17,309
Total equity	1,463,753		1,318,013
Total liabilities and equity	$	2,064,402	$	1,902,832

The accompanying notes are an integral part of these condensed consolidated financial statements.

GREEN BRICK PARTNERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Residential units revenue	$	547,138	$	454,445	$	990,422	$	904,807
Land and lots revenue	13,493		1,844		17,547		3,543
Total revenues	560,631		456,289		1,007,969		908,350
Cost of residential units	358,183		312,030		653,496		638,154
Cost of land and lots	12,782		1,324		16,550		2,655
Total cost of revenues	370,965		313,354		670,046		640,809
Total gross profit	189,666		142,935		337,923		267,541
Selling, general and administrative expenses	(57,602)		(49,229)		(108,172)		(95,174)
Equity in income of unconsolidated entities	1,186		5,699		3,778		9,920
Other income, net	5,927		4,807		21,281		9,097
Income before income taxes	139,177		104,212		254,810		191,384
Income tax expense	23,896		23,148		48,738		42,179
Net income	115,281		81,064		206,072		149,205
Less: Net income attributable to noncontrolling interests	9,923		5,794		17,413		9,755
Net income attributable to Green Brick Partners, Inc.	$	105,358	$	75,270	$	188,659	$	139,450
Net income attributable to Green Brick Partners, Inc. per common share:
Basic	$	2.34	$	1.64	$	4.18	$	3.02
Diluted	$	2.32	$	1.63	$	4.14	$	3.00
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:
Basic	44,760		45,371		44,826		45,656
Diluted	45,154		45,755		45,277		46,051

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

GREEN BRICK PARTNERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands, except share data)

(Unaudited)

For the three months ended June 30, 2024 and 2023:

	Common Stock			Preferred Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Total GRBK Stockholders’ Equity		Non controlling Interests		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at March 31, 2024	45,096,392	$	451	2,000	$	47,603	(71,241)	$	(3,758)	$	259,412	$	1,079,619	$	1,383,327	$	16,364	$	1,399,691
Issuance of common stock under 2014 Omnibus Equity Incentive Plan, net of forfeitures	500,000	5		—	—		—	—		(5)		—		—		—		—
Withholdings from share-based compensation awards	(238,961)	(2)		—	—		—	—		(9,111)		—		(9,113)		—		(9,113)
Amortization of deferred share-based compensation	—	—		—	—		—	—		779		—		779		—		779
Dividends	—	—		—	—		—	—		—		(719)		(719)		—		(719)
Stock repurchases	—	—		—	—		(691,739)	(38,832)		—		—		(38,832)		—		(38,832)
Treasury stock retirement	(459,656)	(5)		—	—		459,656	25,398		(2,647)		(22,746)		—		—		—
Change in fair value of redeemable noncontrolling interest	—	—		—	—		—	—		(1,565)		—		(1,565)		—		(1,565)
Net income	—	—		—	—		—	—		—		105,358		105,358		8,154		113,512
Balance at June 30, 2024	44,897,775	$	449	2,000	$	47,603	(303,324)	$	(17,192)	$	246,863	$	1,161,512	$	1,439,235	$	24,518	$	1,463,753

	Common Stock			Preferred Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Total GRBK Stockholders’ Equity		Non controlling Interests		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at March 31, 2023	46,211,430	$	462	2,000	$	47,696	467,875	$	(15,351)	$	263,545	$	817,802	$	1,114,154	$	12,448	$	1,126,602
Issuance of common stock under 2014 Omnibus Equity Incentive Plan, net of forfeitures	(29,161)	—		—	—		—	—		—		—		—		—		$	—
Amortization of deferred share-based compensation	—	—		—	—		—	—		462		—		462		—		$	462
Dividends	—	—		—	—		—	—		—		(719)		(719)		—		(719)
Stock repurchases	—	—		—	—		335,716	(12,640)		—		—		(12,640)		—		(12,640)
Treasury stock retirement	(803,591)	(8)		—	—		(803,591)	27,991		(4,592)		(23,391)		—		—		—
Change in fair value of redeemable noncontrolling interest	—	—		—	—		—	—		(2,450)		—		(2,450)		—		(2,450)
Net income	—	—		—	—		—	—		—		75,270		75,270		3,700		78,970
Balance at June 30, 2023	45,378,678	$	454	2,000	$	47,696	—	$	—	$	256,965	$	868,962	$	1,174,077	$	16,148	$	1,190,225

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

GREEN BRICK PARTNERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands, except share data) (Unaudited)

For the six months ended June 30, 2024 and 2023:

	Common Stock			Preferred Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Total GRBK Stockholders’ Equity		Non controlling Interests		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 31, 2023	45,005,175	$	450	2,000	$	47,603	—	$	—	$	255,614	$	997,037	$	1,300,704	$	17,309	$	1,318,013
Issuance of common stock under 2014 Omnibus Equity Incentive Plan, net of forfeitures	636,777	6		—	—		—	—		5,843		—		5,849		—		5,849
Withholdings from share-based compensation awards	(284,521)	(2)		—	—		—	—		(11,274)		—		(11,276)		—		(11,276)
Amortization of deferred share-based compensation	—	—		—	—		—	—		1,292		—		1,292		—		1,292
Dividends	—	—		—	—		—	—		—		(1,438)		(1,438)		—		(1,438)
Stock repurchases		—		—	—		(762,980)	(42,590)		—		—		(42,590)		—		(42,590)
Treasury stock retirement	(459,656)	(5)		—	—		459,656	25,398		(2,647)		(22,746)		—				—
Change in fair value of redeemable noncontrolling interest	—	—		—	—		—	—		(1,965)		—		(1,965)		—		(1,965)
Distributions	—	—		—	—		—	—		—		—		—		(6,785)		(6,785)
Net income	—	—		—	—		—	—		—		188,659		188,659		13,994		202,653
Balance at June 30, 2024	44,897,775	$	449	2,000	$	47,603	(303,324)	$	(17,192)	$	246,863	$	1,161,512	$	1,439,235	$	24,518	$	1,463,753

	Common Stock			Preferred Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Total GRBK Stockholders’ Equity		Non controlling Interests		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance at December 31, 2022	46,032,930	$	460	2,000	$	47,696	—	$	—	$	259,410	$	754,341	$	1,061,907	$	20,908	$	1,082,815
Issuance of common stock under 2014 Omnibus Equity Incentive Plan, net of forfeitures	209,196	3		—	—		—	—		5,230		—		5,233		—		5,233
Withholdings from vesting of restricted stock awards	(59,857)	(1)		—	—		—	—		(1,975)		—		(1,976)		—		(1,976)
Amortization of deferred share-based compensation	—	—		—	—		—	—		1,029		—		1,029		—		1,029
Dividends	—	—		—	—		—	—		—		(1,438)		(1,438)		—		(1,438)
Stock repurchases	—	—		—	—		803,591	(27,991)		—		—		(27,991)		—		(27,991)
Treasury stock retirement	(803,591)	(8)		—	—		(803,591)	27,991		(4,592)		(23,391)		—		—		—
Change in fair value of redeemable noncontrolling interest	—	—		—	—		—	—		(2,137)		—		(2,137)		—		(2,137)
Distributions	—	—		—	—		—	—		—		—		—		(11,056)		(11,056)
Net income	—	—		—	—		—	—		—		139,450		139,450		6,296		145,746
Balance at June 30, 2023	45,378,678	$	454	2,000	$	47,696	—	$	—	$	256,965	$	868,962	$	1,174,077	$	16,148	$	1,190,225

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

GREEN BRICK PARTNERS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	206,072	$	149,205
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	2,375		1,584
Loss (gain) on disposal of property and equipment, net	71		(146)
Share-based compensation expense	7,144		5,966
Equity in income of unconsolidated entities	(3,778)		(9,920)
Allowances for option deposits and pre-acquisition costs	12		47
Gain on sale of investment in unconsolidated entity	(10,718)		—
Distributions of income from unconsolidated entities	2,121		7,324
Changes in operating assets and liabilities:
Increase in receivables	(4,071)		(1,769)
(Increase) decrease in inventory	(258,236)		18,938
Decrease in earnest money deposits	2,090		7,773
Decrease in other assets	10,589		888
Increase in accounts payable	13,657		5,660
Increase in accrued expenses	29,683		10,479
Increase in customer and builder deposits	6,168		14,139
Net cash provided by operating activities	3,179		210,168
Cash flows from investing activities:
Proceeds from sale of investment in unconsolidated entity	63,960		—
Investments in unconsolidated entities	(3,488)		(4,980)
Purchase of property and equipment, net of disposals	(2,324)		(2,852)
Net cash provided by (used in) investing activities	58,148		(7,832)
Cash flows from financing activities:
Borrowings from lines of credit	—		22,000
Repayments of lines of credit	—		(42,000)
Repayments of senior unsecured notes	(25,000)		—
Proceeds from notes payable	—		63
Repayments of notes payable	(12,884)		(95)
Payments of debt issuance costs	—		(72)
Payments of withholding tax on vesting of restricted stock awards	(11,276)		(1,975)
Repurchases of common stock	(42,590)		(27,991)
Dividends paid	(1,438)		(1,438)
Distributions to redeemable noncontrolling interest	(2,637)		(1,840)
Distributions to noncontrolling interests	(6,785)		(11,056)
Net cash used in financing activities	(102,610)		(64,404)
Net (decrease) increase in cash and cash equivalents and restricted cash	(41,283)		137,932
Cash and cash equivalents and restricted cash, beginning of period	199,459		93,270
Cash and cash equivalents and restricted cash, end of period	$	158,176	$	231,202
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	$	27,716	$	39,071

The accompanying notes are an integral part of these condensed consolidated financial statements. 

4

GREEN BRICK PARTNERS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”), but do not include all of the information and footnotes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments of a normal, recurring nature necessary to fairly state our financial position, results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024 or subsequent periods due to seasonal variations and other factors.

Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, (together, the “Company”, “we”, or “Green Brick”) and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary.

All intercompany balances and transactions have been eliminated in consolidation.

The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses, if any, is included in the condensed consolidated statements of income.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

For a complete set of the Company’s significant accounting policies, refer to Note 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. 

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the FASB in the form of Accounting Standard Updates (“ASUs”) to the FASB ASC. We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually disclose specific categories in the income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of (i) significant segment expenses that are regularly provided to the chief

5

operating decision maker (“CODM”) and included within the segment measure of profit or loss, (ii) an amount and description of its composition for other segment items to reconcile to segment profit or loss, and (iii) the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its Consolidated Financial Statements and disclosures.

2. INVENTORY

A summary of inventory is as follows (in thousands):

	June 30, 2024		December 31, 2023
Homes completed or under construction	$	646,153	$	559,488
Land and lots - developed and under development	1,123,602		921,241
Land held for future development(1)	14,946		48,991
Land held for sale	7,355		3,503
Total inventory	$	1,792,056	$	1,533,223

(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred.

As of June 30, 2024, the Company reviewed the performance and outlook for all of its communities and land inventory for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. As of June 30, 2024, one selling community had an indicator of impairment. The Company estimated the remaining undiscounted cash flows for this community and determined its carrying value of $20.9 million does not exceed the community’s fair value. For the three and six months ended June 30, 2024 and 2023, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.

A summary of interest costs incurred, capitalized and expensed is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024		2023
Interest capitalized at beginning of period	$	24,893		$	22,847		$	24,126	$	22,752
Interest incurred	3,472			3,624			6,923		7,367
Interest charged to cost of revenues	(3,131)			(3,872)			(5,815)		(7,520)
Interest capitalized at end of period	$	25,234		$	22,599		$	25,234	$	22,599
Capitalized interest as a percentage of inventory	1.4		%	1.6		%

3. INVESTMENT IN UNCONSOLIDATED ENTITIES

A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):

	June 30, 2024		December 31, 2023
GB Challenger, LLC(1)	$	—	$	52,666
GBTM Sendera, LLC	20,804		19,866
EJB River Holdings, LLC	12,156		10,867
Rainwater Crossing Single-Family, LLC	2,550		—
BHome Mortgage, LLC	1,047		1,255
Total investment in unconsolidated entities	$	36,557	$	84,654

(1)Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC for approximately $64.0 million in cash.

6

Sale of GB Challenger Ownership Interest

Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC (“Challenger”) to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash. A gain on this sale of $10.7 million is included in other income, net in the condensed consolidated statements of income.

Rainwater Crossing Single-Family, LLC Joint Venture

On February 15, 2024, a wholly owned subsidiary of the Company established a joint venture (“JV”), Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”), with Rainwater Single Family S-CORP to develop a tract of land in Celina, Texas. Both parties hold a 50% ownership interest in Rainwater Crossing. The Company evaluated the JV agreements and determined that it has a variable interest in this entity, but the Company is not its primary beneficiary. Specifically, the Company determined that it does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. Therefore, the Company’s investment in Rainwater Crossing is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s condensed consolidated balance sheets.

As of June 30, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $22.4 million, representing its $2.6 million investment and the Company’s remaining commitment to contribute to the joint venture $15.0 million in quarterly payments through March 31, 2029 and $4.8 million upon the joint venture’s initial land contribution. The Company will also fund the development costs related to this project.

A summary of the unaudited condensed financial information of the unconsolidated entities as of June 30, 2024 and December 31, 2023 that are accounted for by the equity method is as follows (in thousands):

	June 30, 2024		December 31, 2023
Assets:
Cash	$	6,099	$	23,549
Accounts receivable	561		4,207
Bonds and notes receivable	19,363		2,838
Loans held for sale, at fair value	7,328		7,452
Inventory	66,787		182,550
Other assets	570		6,425
Total assets	$	100,708	$	227,021
Liabilities:
Accounts payable	$	3,653	$	7,151
Accrued expenses and other liabilities	2,594		10,265
Notes payable	27,573		49,701
Total liabilities	33,820		67,117
Owners’ equity:
Green Brick	34,681		80,968
Others	32,207		78,936
Total owners’ equity	66,888		159,904
Total liabilities and owners’ equity	$	100,708	$	227,021

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues	$	8,078	$	74,747	$	37,817	$	133,070
Costs and expenses	5,680		63,420		30,187		113,146
Net earnings of unconsolidated entities	$	2,398	$	11,327	$	7,630	$	19,924
Company’s share in net earnings of unconsolidated entities	$	1,186	$	5,699	$	3,778	$	9,920

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A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
GB Challenger, LLC(1)	$	—	$	4,487	$	929	$	7,512
EJB River Holdings, LLC	520		571		1,290		1,074
BHome Mortgage, LLC	666		641		1,559		1,334
Total net earnings from unconsolidated entities	$	1,186	$	5,699	$	3,778	$	9,920

(1)Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC for approximately $64.0 million in cash.

4. ACCRUED EXPENSES

A summary of the Company’s accrued expenses is as follows (in thousands):

	June 30, 2024		December 31, 2023
Real estate development reserve to complete(1)	$	30,698	$	26,063
Warranty reserve	27,139		23,474
Federal income tax payable(2)	17,994		—
Accrued property tax payable	10,460		5,003
Accrued compensation	14,637		14,960
Other accrued expenses	25,216		26,957
Total accrued expenses	$	126,144	$	96,457

(1)The Company’s real estate development reserve to complete consists of estimated future costs to complete the development of its communities.

(2)On May 28, 2024, the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in certain Texas counties that were affected by severe weather on April 26, 2024. For the affected taxpayers, the IRS extended the due date to November 1, 2024 for any estimated income tax payments due on or after April 26, 2024.

Warranties

Warranty accruals are included within accrued expenses on the condensed consolidated balance sheets. Warranty activity during the three and six months ended June 30, 2024 and 2023 consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Warranty accrual, beginning of period	$	25,116	$	19,532	$	23,474	$	17,945
Warranties issued	3,373		2,876		6,126		4,921
Changes in liability for existing warranties	53		(82)		251		551
Payments made	(1,403)		(1,502)		(2,712)		(2,593)
Warranty accrual, end of period	$	27,139	$	20,824	$	27,139	$	20,824

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5. DEBT

Lines of Credit

Borrowings on lines of credit outstanding, net of debt issuance costs, as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

	June 30, 2024		December 31, 2023
Secured Revolving Credit Facility	$	—	$	—
Unsecured Revolving Credit Facility	—		—
Debt issuance costs, net of amortization	(1,921)		(2,328)
Total borrowings on lines of credit, net	$	(1,921)	$	(2,328)

Secured Revolving Credit Facility

The Company is party to a revolving credit facility (the “Secured Revolving Credit Facility”) with Inwood National Bank, which provides for an aggregate commitment amount of $35.0 million. The Secured Revolving Credit Facility matures on May 1, 2025 and it carries a minimum interest rate of 3.15%. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date.

As of June 30, 2024 there were no letters of credit outstanding under our Secured Revolving Credit Facility and the net available commitment amount was $35.0 million.

Unsecured Revolving Credit Facility

The Company is party to a credit agreement, providing for a senior, unsecured revolving credit facility (the “Unsecured Revolving Credit Facility”). On December 8, 2023, the Company entered into the Eleventh Amendment to this credit agreement which was amended to revise certain financial covenants in order to appropriately reflect the Company’s size and growth. The Eleventh Amendment also extends the maturity of $300.0 million of the commitments under the credit facility through December 14, 2026, with the remaining $25.0 million commitment expiring December 14, 2025.

The Unsecured Revolving Credit Facility is guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries.

Senior Unsecured Notes

Senior unsecured notes, net of debt issuance costs, as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

	June 30, 2024		December 31, 2023
4.00% senior unsecured notes due in 2026 (“2026 Notes”)	$	75,000	$	75,000
3.35% senior unsecured notes due in 2027 (“2027 Notes”)	37,500		37,500
3.25% senior unsecured notes due in 2028 (“2028 Notes”)	100,000		125,000
3.25% senior unsecured notes due in 2029 (“2029 Notes”)	100,000		100,000
Debt issuance costs, net of amortization	(1,102)		(1,293)
Total senior unsecured notes, net	$	311,398	$	336,207

The Senior Unsecured Notes are guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries. Optional prepayment of each of the Senior Unsecured Notes is allowed with a payment of a “make-whole” penalty which fluctuates depending on market interest rates. Interest is payable quarterly in arrears.

2026 Notes

Principal on the 2026 Notes is required to be paid in increments of $12.5 million on August 8, 2024 and $12.5 million on August 8, 2025. The final principal payment of $50.0 million is due on August 8, 2026.

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2027 Notes

The aggregate principal amount of the 2027 Notes is due on August 26, 2027.

2028 Notes

Principal on the 2028 Notes is due in increments of $25.0 million annually on February 25 in each of 2025, 2026, 2027, and 2028.

2029 Notes

Principal on the 2029 Notes of $30.0 million is due on December 28, 2028 and the remaining principal amount of $70.0 million is due on December 28, 2029.

Our debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of June 30, 2024.

6. REDEEMABLE NONCONTROLLING INTEREST

The Company has a noncontrolling interest attributable to the 20% minority interest in GRBK GHO Homes, LLC (“GRBK GHO”) owned by its Florida-based partner that is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s condensed consolidated financial statements.

On March 23, 2023, the Company and the minority partner amended the operating agreement of GRBK GHO to change the start of the put and purchase options from April 2024 to April 2027. Refer to Note 2 in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for details on the put/call structure of this agreement.

The following tables show the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30,
	2024		2023
Redeemable noncontrolling interest, beginning of period	$	38,186	$	30,291
Net income attributable to redeemable noncontrolling interest partner	1,769		2,094
Distributions of income to redeemable noncontrolling interest partner	(2,637)		(1,840)
Change in fair value of redeemable noncontrolling interest	1,565		2,450
Redeemable noncontrolling interest, end of period	$	38,883	$	32,995

	Six Months Ended June 30,
	2024		2023
Redeemable noncontrolling interest, beginning of period	$	36,135	$	29,239
Net income attributable to redeemable noncontrolling interest partner	3,420		3,459
Distributions of income to redeemable noncontrolling interest partner	(2,637)		(1,840)
Change in fair value of redeemable noncontrolling interest	1,965		2,137
Redeemable noncontrolling interest, end of period	$	38,883	$	32,995

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7. STOCKHOLDERS’ EQUITY

2022 Share Repurchase Program

During the six month period ended June 30, 2024, the Company completed discrete open market repurchases under the 2022 Repurchase Plan of 65,481 shares for approximately $3.4 million, excluding excise tax. The Company completed the repurchases under the 2022 Repurchase Plan on March 15, 2024. The repurchased shares were subsequently retired.

2023 Share Repurchase Program

On April 27, 2023, the Board approved a new stock repurchase program (the “2023 Repurchase Plan”) that authorizes the Company to purchase, from time to time, up to an additional $100.0 million of our outstanding common stock through open market repurchases in compliance with Rule 10b-18 under the Securities Exchange Act of 1924, as amended (the “Exchange Act”) and/or in privately negotiated transactions based on market and business conditions, applicable legal requirements and other factors. Shares repurchased will be retired. The 2023 Repurchase Plan has no time deadline and will continue until otherwise modified, completed, or terminated by the Board at any time in its sole discretion.

During the three and six months ended June 30, 2024, the Company repurchased 691,739 and 697,499 shares, respectively, for approximately $38.4 million and $38.7 million, excluding excise tax. As of June 30, 2024, the remaining dollar value of shares that may be repurchased under the 2023 Repurchase Plan was $61.3 million, excluding excise tax. As of June 30, 2024, 459,656 of the repurchased shares were retired.

Preferred Stock

The table below presents a summary of the perpetual preferred stock outstanding at June 30, 2024 and December 31, 2023.

Series	Description	Initial date of issuance	Total Shares Outstanding(1)	Liquidation Preference per Share (in dollars)		Carrying Value (in thousands)		Per Annum Dividend Rate		Redemption Period
Series A(1)	5.75% Cumulative Perpetual	December 2021	2,000	$	25	$	50,000	5.75	%	n/a

(1)     Ownership is held in the form of Depositary Shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.

Dividends

Dividends paid on our Series A preferred stock were $0.7 million and $1.4 million for each of the three and six months ended June 30, 2024 and 2023.

On July 22, 2024, the Board declared a quarterly cash dividend of $0.359 per depositary share on the Company’s preferred stock. The dividend is payable on September 15, 2024 to stockholders of record as of September 1, 2024.

8. SHARE-BASED COMPENSATION

The 2014 Omnibus Equity Incentive Plan and the 2024 Omnibus Incentive Plan, are administered by the Board and allow for the grant of stock awards (“SAs”), restricted stock awards (“RSAs”), performance restricted stock units (“PRSUs”), restricted stock units (RSUs), stock options and other stock based awards.

2024 Omnibus Incentive Plan

On June 11, 2024, the 2024 Omnibus Incentive Plan was approved by the stockholders of the Company. As of June 11, 2024, no further awards may be made under the Green Brick Partners, Inc. 2014 Omnibus Equity Incentive Plan.

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Share-Based Award Activity

During the six months ended June 30, 2024, the Company granted SAs to executive officers, RSAs to non-employee members of the Board, and PRSUs to employees. The SAs granted to the executive officers were 100% vested and non-forfeitable on the grant date. Non-vested stock awards are usually granted with a one-year vesting for non-employee directors, two-year cliff vesting for employee RSAs, and three-year cliff vesting for PRSUs. The fair value of all share awards were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. Stock options were also exercised by an executive officer during the three months ended June 30, 2024. The Company withheld 284,521 shares of common stock from executive officers and employees at a total cost of $11.3 million, to satisfy statutory minimum tax requirements upon grant of the SAs, vesting of RSAs, and exercise of stock options.

A summary of share-based awards activity during the six months ended June 30, 2024 is as follows:

	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value per Share
Unvested, December 31, 2023	92	$	33.56
Granted	172	$	51.75
Vested	(149)	$	46.69
Forfeited	(1)	$	36.44
Unvested, June 30, 2024	114	$	43.77

Stock Options

A summary of stock options activity during the six months ended June 30, 2024 is as follows:

	Number of Shares (in thousands)	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding, December 31, 2023	500	$	7.49	0.82	$	22,225
Granted	—	—		—	—
Exercised	(500)	7.49		—	23,160
Forfeited	—	—		—	—
Options outstanding, June 30, 2024	—	$	—	—	$	—
Options exercisable, June 30, 2024	—	$	—	—	$	—

Share-Based Compensation Expense

Share-based compensation expense was $0.8 million and $0.5 million for the three months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024 and 2023, share-based compensation expense was $7.1 million and $6.0 million, respectively.

As of June 30, 2024, the estimated total remaining unamortized share-based compensation expense related to unvested RSAs and PRSUs, net of forfeitures, was $3.2 million which is expected to be recognized over a weighted-average period of 1.9 years.

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9. REVENUE RECOGNITION

Disaggregation of Revenue

The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30, 2024				Three Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	389,168	$	13,493	$	322,154	$	1,844
Southeast	157,970		—		132,291		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Type of Customer
Homebuyers	$	547,138	$	—	$	454,445	$	—
Homebuilders and Multi-family Developers	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Product Type
Residential units	$	547,138	$	—	$	454,445	$	—
Land and lots	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Timing of Revenue Recognition
Transferred at a point in time	$	546,948	$	13,493	$	454,136	$	1,844
Transferred over time(1)	190		—		309		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

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	Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	704,405	$	17,547	$	666,618	$	3,543
Southeast	286,017		—		238,189		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Type of Customer
Homebuyers	$	990,422	$	—	$	904,807	$	—
Homebuilders and Multi-family Developers	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Product Type
Residential units	$	990,422	$	—	$	904,807	$	—
Land and lots	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Timing of Revenue Recognition
Transferred at a point in time	$	990,042	$	17,547	$	903,566	$	3,543
Transferred over time(1)	380		—		1,241		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

Contract Balances

Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):

	June 30, 2024		December 31, 2023
Customer and builder deposits	$	49,316	$	43,148

The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by terminations of contracts.

The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three and six months ended June 30, 2024 and 2023 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Homebuyer deposits recognized as revenue	$	21,064	$	15,595	$	30,640	$	21,329

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $6.4 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel. The Company expects to recognize revenue of $5.8 million in the remainder of 2024 and $0.6 million in 2025.

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The timing of lot takedowns is contingent upon a number of factors, including customer and business needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.

Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.

10. SEGMENT INFORMATION

Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Financial information related to the Company’s reportable segments is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues: (1)
Builder operations
Central	$	389,168	$	322,154	$	704,515	$	666,618
Southeast	157,970		132,291		286,017		238,189
Total builder operations	547,138		454,445		990,532		904,807
Land development	13,493		1,844		17,437		3,543
Total revenues	$	560,631	$	456,289	$	1,007,969	$	908,350
Gross profit:
Builder operations
Central	$	142,534	$	107,878	$	252,200	$	210,283
Southeast	57,431		45,868		105,522		79,197
Total builder operations	199,965		153,746		357,722		289,480
Land development	775		858		1,080		1,546
Corporate, other and unallocated (2)	(11,074)		(11,669)		(20,879)		(23,485)
Total gross profit	$	189,666	$	142,935	$	337,923	$	267,541
Income before income taxes:
Builder operations
Central	$	104,803	$	74,800	$	180,324	$	142,817
Southeast	41,417		32,494		76,211		54,765
Total builder operations	146,220		107,294		256,535		197,582
Land development	1,542		1,140		2,015		1,915
Corporate, other and unallocated (3)	(8,585)		(4,222)		(3,740)		(8,113)
Income before income taxes	$	139,177	$	104,212	$	254,810	$	191,384

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	June 30, 2024		December 31, 2023
Inventory:
Builder operations
Central	$	677,930	$	645,987
Southeast	333,065		314,087
Total builder operations	1,010,995		960,074
Land development	733,274		529,711
Corporate, other and unallocated (4)	47,787		43,438
Total inventory	$	1,792,056	$	1,533,223
Goodwill:
Builder operations - Southeast	$	680	$	680

(1)The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the condensed consolidated statements of income in periods when our builders have revenues from land or lot closings. Land and lot closings revenue were $13.5 million and $17.5 million for the three and six months ended June 30, 2024 and $1.8 million and $3.5 million for the three and six months ended June 30, 2023, respectively.

(2)Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments.

(3)Corporate, other and unallocated income (loss) before income taxes includes results from Green Brick Title, LLC, Ventana Insurance, LLC, and investments in unconsolidated subsidiaries, in addition to capitalized cost adjustments that are not allocated to operating segments.

(4)Corporate, other and unallocated inventory consists of capitalized overhead and interest related to homes under construction and land under development.

11. INCOME TAXES

The Company’s income tax expense for the three and six months ended June 30, 2024 was $23.9 million and $48.7 million, respectively, compared to $23.1 million and $42.2 million in the prior year periods. The effective tax rate was 17.2% and 19.1% for the three and six months ended June 30, 2024, respectively, compared to 22.2% and 22.0% in the comparable prior year periods. The change in the effective tax rate for the three and six months ended June 30, 2024 is primarily due to an improved rate benefit in the Energy Efficient Homes Tax credit as compared to pre-tax book income, lower state tax rates, and a discrete tax benefit for equity compensation deductions.

12. EARNINGS PER SHARE

The Company’s RSAs have the right to receive forfeitable dividends on an equal basis with common stock and its PRSUs do not participate in dividends with common stock. As such, these stock awards are not considered participating securities that must be included in the calculation of net income per share using the two-class method.

Basic earnings per common share is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of RSAs and PRSUs during each period. Net income applicable to common stockholders is net income adjusted for preferred stock dividends including dividends declared and cumulative dividends related to the current dividend period that have not been declared as of period end. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options, RSAs and PRSUs.

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The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income attributable to Green Brick Partners, Inc.	$	105,358	$	75,270	$	188,659	$	139,450
Preferred dividends	(719)		(719)		(1,438)		(1,438)
Net income applicable to common stockholders	104,639		74,551		187,221		138,012
Weighted-average number of common shares outstanding - basic	44,760		45,371		44,826		45,656
Basic net income attributable to Green Brick Partners, Inc. per common share	$	2.34	$	1.64	$	4.18	$	3.02
Weighted-average number of common shares outstanding - basic	44,760		45,371		44,826		45,656
Dilutive effect of stock options and restricted stock awards	394		384		451		395
Weighted-average number of common shares outstanding - diluted	45,154		45,755		45,277		46,051
Diluted net income attributable to Green Brick Partners, Inc. per common share	$	2.32	$	1.63	$	4.14	$	3.00

The following shares which could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Antidilutive options to purchase common stock and restricted stock awards	—	(4)	—	(55)

13. FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The Company’s financial instruments, none of which are held for trading purposes, include cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, senior unsecured notes, and notes payable.

Per the fair value hierarchy, level 1 financial instruments include: cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the condensed consolidated financial statements as of June 30, 2024 and December 31, 2023.

Level 2 financial instruments include borrowings on lines of credit, senior unsecured notes, and notes payable. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit are deemed to approximate fair value. The estimated fair value of the senior unsecured notes was $294.7 million and $322.5 million as of June 30, 2024 and December 31, 2023, respectively. The aggregate principal balance of the senior unsecured notes was $312.5 million as of June 30, 2024 and $337.5 million as of December 31, 2023.

There were no transfers between the levels of the fair value hierarchy for any of our financial instruments during the three and six months ended June 30, 2024 and 2023.

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14. RELATED PARTY TRANSACTIONS

During the three and six months ended June 30, 2024 and 2023, the Company had the following related party transactions in the normal course of business.

Corporate Officers

Trevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of CLH20, LLC (“Centre Living”). Green Brick’s ownership interest in Centre Living is 90% and Trevor Brickman’s ownership interest is 10%. Green Brick has 90% voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our condensed consolidated financial statements.

GRBK GHO

GRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During the three and six months ended June 30, 2024 and 2023, GRBK GHO incurred de minimis and $0.1 million rent expense, respectively, under such lease agreements. As of June 30, 2024 and December 31, 2023, there were no amounts due to the affiliated entities related to such lease agreements.

GRBK GHO receives title closing services on the purchase of land and third-party lots from an entity affiliated with the president of GRBK GHO. During the three and six months ended June 30, 2024 and 2023, GRBK GHO incurred de minimis fees related to such title closing services. As of June 30, 2024, and December 31, 2023, no amounts were due to the title company affiliate.

15. COMMITMENTS AND CONTINGENCIES

Letters of Credit and Performance Bonds

During the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of June 30, 2024 and December 31, 2023, letters of credit and performance bonds outstanding were $5.2 million and $13.5 million, respectively. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future.

Operating Leases

The Company has leases associated with office and design center space in Georgia, Texas, and Florida that, at the commencement date, have a lease term of more than 12 months and are classified as operating leases. The exercise of any extension options available in such operating lease contracts is not reasonably certain.

Operating lease cost of $0.4 million and $0.8 million for each of the three and six months ended June 30, 2024, and 2023, is included in selling, general and administrative expenses in the condensed consolidated statements of income. Cash paid for amounts included in the measurement of operating lease liabilities was $0.2 million and $0.3 million for the three and six months ended June 30, 2024, respectively, and $0.4 million and $0.9 million in the prior year periods.

As of June 30, 2024, the weighted-average remaining lease term and the weighted-average discount rate used in calculating the Company’s lease liabilities were 6.3 years and 7.4%, respectively.

The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the condensed consolidated balance sheet as of June 30, 2024 are presented below (in thousands):

Remainder of 2024	$	721
2025	1,827
2026	1,748
2027	1,722
2028	1,689
Thereafter	3,420
Total future lease payments	11,127
Less: Interest	2,371
Present value of lease liabilities	$	8,756

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The Company elected the short-term lease recognition exemption for all leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For such leases, the Company does not recognize right-of-use assets or lease liabilities and instead recognizes lease payments in the condensed consolidated income statements on a straight-line basis. Short-term lease cost of $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively, and $0.3 million and $0.4 million for the comparable prior year periods, is included in selling, general and administrative expenses in the condensed consolidated statements of income.

Legal Matters

Lawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations.

The Company records an accrual for legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary.

In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

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FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts and typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Forward-looking statements in this Quarterly Report include statements concerning, (a) our balance sheet strategies, operational strength and margin performance; (b) our operational goals and strategies and their anticipated benefits, including expansion into new markets; (c) our land and lot acquisition and development strategies and their expected impact on our results; (d) the sufficiency of our capital resources to support our business strategy and to service our debt; (e) our strategies to utilize leverage to invest in our business; (f) our target debt to total capitalization ratio and the benefits of the same; (g) our expectations regarding future cash needs and access to additional growth capital; (h) seasonal factors and the impact of seasonality in future quarters; (i) the use of proceeds from the sale of our interest in Challenger and (j) beliefs regarding the impact of accounting standards and legal claims and related contingencies. These forward-looking statements reflect our current views about future events and involve estimates and assumptions which may be affected by risks and uncertainties in our business, as well as other external factors, which could cause future results to materially differ from those expressed or implied in any forward-looking statement. These risks include, but are not limited to: (1) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (2) changes in macroeconomic conditions, including increasing interest rates and inflation that could adversely impact demand for new homes or the ability of potential buyers to qualify; (3) shortages, delays or increased costs of raw materials and increased demand for materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed our ability to increase prices; (4) significant periods of inflation or deflation; (5) a shortage of qualified labor; (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including the successful development of our communities within expected time frames and the growth and expansion of our Trophy brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) the geographic concentration of our operations; (10) government regulation risks; (11) adverse changes in the availability or volatility of mortgage financing; (12) severe weather events or natural disasters; (13) difficulty in obtaining sufficient capital to fund our growth; (14) our ability to meet our debt service obligations; (15) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (16) our ability to adequately self-insure; and (17) changes in accounting standards that adversely affect our reported earnings or financial condition.

Please see “Risk Factors” located in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023 for a further discussion of these and other risks and uncertainties which could affect our future results. We undertake no obligation to revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events, except to the extent we are legally required to disclose certain matters in SEC filings or otherwise.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024 and our condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q.

Overview and Outlook

Our key financial and operating metrics are home deliveries, home closings revenue, average sales price of homes delivered, and net new home orders, which refers to sales contracts executed reduced by the number of sales contracts canceled during the relevant period. Our results for each key financial and operating metric, as compared to the same period in 2023, are provided below:

	Three Months Ended June 30, 2024	Six Months Ended June 30, 2024
Home deliveries	Increased by 26.1%	Increased by 17.1%
Home closings revenue	Increased by 20.4%	Increased by 9.6%
Average sales price of homes delivered	Decreased by 4.4%	Decreased by 6.4%
Net new home orders	Increased by 4.0%	Increased by 2.0%
Homebuilding gross margin percentage	Increased by 320 bps	Increased by 450 bps

Our strong operating results continued to be driven by our superior infill and infill-adjacent locations in high-growth markets, our reduced cycle times, and the strong demand for new homes in our markets. Our average active selling communities increased 21.7% for the quarter while the average sales price of homes delivered decreased 4.4%, primarily as a result of closing out infill communities and opening new communities in surrounding infill-adjacent areas, with homebuilding gross margins improving from 31.3% to 34.5% for the quarter.

Three Months Ended June 30, 2024 Compared to the Three Months Ended June 30, 2023

Residential Units Revenue and New Homes Delivered

The table below represents residential units revenue and new homes delivered for the three months ended June 30, 2024 and 2023 (dollars in thousands):

	Three Months Ended June 30,
	2024		2023		Change		%
Home closings revenue	$	546,948	$	454,136	$	92,812	20.4%
Mechanic’s lien contracts revenue	190		309		(119)		(38.5)%
Residential units revenue	$	547,138	$	454,445	$	92,693	20.4%
New homes delivered	987		783		204		26.1%
Average sales price of homes delivered	$	554.2	$	580.0	$	(25.8)	(4.4)%

The 20.4% increase in residential units revenue was primarily driven by the 26.1% increase in new homes delivered partially offset by a 4.4% decrease in average sales price of new homes delivered for the three months ended June 30, 2024. The increase in new homes delivered is attributable to the limited competition in our infill and infill-adjacent community sites, our reduced cycle times, and the continued low supply of existing and new home inventory in our markets. The 4.4% decrease in the average sales price of homes delivered for the three months ended June 30, 2024 was a result of closing out infill communities and opening new communities in surrounding infill-adjacent areas.

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New Home Orders and Backlog

The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):

	Three Months Ended June 30,
	2024			2023			Change			%
Net new home orders	855			822			33			4.0	%
Revenue from net new home orders	$	471,807		$	489,495		$	(17,688)		(3.6)	%
Average selling price of net new home orders	$	551.8		$	595.5		$	(43.7)		(7.3)	%
Cancellation rate	9.2		%	7.4		%	1.8		%	24.3	%
Absorption rate per average active selling community per quarter	8.5			9.9			(1.4)			(14.1)	%
Average active selling communities	101			83			18			21.7	%
Active selling communities at end of period	105			86			19			22.1	%
Backlog	$	650,349		$	585,951		$	64,398		11.0	%
Backlog units	889			882			7			0.8	%
Average sales price of backlog	$	731.6		$	664.3		$	67.3		10.1	%

Net new home orders increased 4.0% over the prior year period, and our absorption rate per average active selling community decreased 14.1% year over year. Our average active selling communities increased 21.7% due to the continued opening of new communities. As a result, our absorption rate per average active selling community decreased 14.1% year over year, which was primarily due to the impact of increased mortgage rates, the metering of sales in certain infill communities, and what we believe is the return of pre-pandemic seasonality during the second quarter. The 3.6% decrease in revenue from net new home orders is primarily attributable to a higher mix of sales from newer, in-fill adjacent communities at lower average selling prices and fewer sales from closed-out, infill communities.

Backlog refers to homes under sales contracts that have not yet closed at the end of the relevant period, and absorption rate refers to the rate at which net new home orders are contracted per average active selling community during the relevant period. Sales contracts may be canceled prior to closing for a number of reasons, including the inability of the homebuyer to obtain suitable mortgage financing. Accordingly, backlog may not be indicative of our future revenue.

Backlog increased by 11.0% with a slight increase in backlog units and a 10.1% increase in the average sales price of backlog units. Moreover, our spec units under construction as a percentage of total units under construction declined from 69.8% as of December 31, 2023 to 65.1% as of June 30, 2024.

Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 9.2% for the three months ended June 30, 2024, compared to 7.4% for the three months ended June 30, 2023. Our cancellation rate remained in a historically low range under 10.0% since December 31, 2022.

22

Residential Units Gross Margin

The table below represents the components of residential units gross margin (dollars in thousands):

	Three Months Ended June 30,
	2024				2023
Home closings revenue	$	546,948	100.0	%	$	454,136	100.0	%
Cost of homebuilding units	358,055		65.5	%	311,834		68.7	%
Homebuilding gross margin	$	188,893	34.5	%	$	142,302	31.3	%
Mechanic’s lien contracts revenue	$	190	100.0	%	$	309	100.0	%
Cost of mechanic’s lien contracts	128		67.4	%	196		63.4	%
Mechanic’s lien contracts gross margin	$	62	32.6	%	$	113	36.6	%
Residential units revenue	$	547,138	100.0	%	$	454,445	100.0	%
Cost of residential units	358,183		65.5	%	312,030		68.7	%
Residential units gross margin	$	188,955	34.5	%	$	142,415	31.3	%

Residential units revenue increased by $92.7 million or 20.4% for the three months ended June 30, 2024 mainly due to a an increase in homes delivered of 26.1% partially offset by a decrease in the average sales price of homes delivered. Cost of residential units for the three months ended June 30, 2024 increased by $46.2 million, or 14.8%, compared to the same period in the previous year due to a combination of lower direct construction costs and lower lot costs associated with the higher mix of deliveries from infill-adjacent communities.

Residential units gross margin for the three months ended June 30, 2024 increased 320 bps to 34.5%, from 31.3% for the three months ended June 30, 2023. The increase in residential units gross margin is attributable to product mix and limited competition in our infill and infill-adjacent community sites.

Land and Lots Revenue

The table below represents lots closed and land and lots revenue (dollars in thousands):

	Three Months Ended June 30,
	2024		2023		Change		%
Lots revenue	$	790	$	1,844	$	(1,054)	(57.2)	%
Land revenue	12,703		—		12,703		100.0%
Land and lots revenue	$	13,493	$	1,844	$	11,649	631.7	%
Lots closed	8		18		(10)		(55.6)	%
Average sales price of lots closed	$	98.8	$	102.4	$	(3.6)	(3.5)	%

From time to time we will opportunistically sell finished lots to other homebuilders when we determine that we have excess capacity in specific neighborhoods or submarkets. Lots revenue decreased by $1.1 million or 57.2% during the three months ended June 30, 2024, driven by a 55.6% decrease in the number of lots closed. Land revenue represents sales of two tracts of commercial land during the three months ended June 30, 2024.

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Selling, General and Administrative Expenses

The table below represents the components of selling, general and administrative expenses (dollars in thousands):

	Three Months Ended June 30,				As Percentage of Segment Revenue
	2024		2023		2024		2023
Builder operations	$	55,113	$	47,736
Corporate, other and unallocated (income) expense	2,411		1,403
Net builder operations	57,524		49,139		10.5	%	10.8	%
Land development	78		90		0.6	%	4.9	%
Total selling, general and administrative expenses	$	57,602	$	49,229	10.3	%	10.8	%

Selling, general and administrative expenses as a percentage of revenue decreased by 0.5% for the three months ended June 30, 2024 due to an increase in builder operations revenues with better leveraging of overhead costs.

Builder Operations

Selling, general and administrative expenses as a percentage of revenue for builder operations decreased by 0.3% for the three months ended June 30, 2024 due to an increase in builder operations revenues with better leveraging of our overhead costs. Builder operations expenditures include salary expenses, sales commissions, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.

Corporate, Other and Unallocated

Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the three months ended June 30, 2024 were $2.4 million, compared to $1.4 million for the three months ended June 30, 2023. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.

Equity in Income of Unconsolidated Entities

Equity in income of unconsolidated entities decreased to $1.2 million, or 79.2%, for the three months ended June 30, 2024, compared to $5.7 million for the three months ended June 30, 2023. The decrease is mainly due to the sale of our ownership interest in Challenger during the three months ended March 31, 2024. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.

Other Income, Net

Other income, net, was $5.9 million for the three months ended June 30, 2024, compared to $4.8 million for the three months ended June 30, 2023.

Income Tax Expense

Income tax expense was $23.9 million for the three months ended June 30, 2024 compared to $23.1 million for the three months ended June 30, 2023. The increase was substantially due to higher taxable income partially offset by a lower effective tax rate, lower state tax rates, and a discrete tax benefit for equity compensation deductions. See Note 11 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the three months ended June 30, 2024.

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Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023

Residential Units Revenue and New Homes Delivered

The table below represents residential units revenue and new homes delivered for the six months ended June 30, 2024 and 2023 (dollars in thousands):

	Six Months Ended June 30,
	2024		2023		Change		%
Home closings revenue	$	990,042	$	903,566	$	86,476	9.6%
Mechanic’s lien contracts revenue	380		1,241		(861)		(69.4)%
Residential units revenue	$	990,422	$	904,807	$	85,615	9.5%
New homes delivered	1,808		1,544		264		17.1%
Average sales price of homes delivered	$	547.6	$	585.2	$	(37.6)	(6.4)%

The $85.6 million increase in residential units revenue was driven by the 17.1% increase in new homes delivered partially offset by a 6.4% decrease in the average sales price of homes delivered for the six months ended June 30, 2024. The increase in new homes delivered was primarily driven by increased levels of active selling communities and home starts and an improvement in cycle times in the current year. The 6.4% decrease in the average sales price of homes delivered for the six months ended June 30, 2024 was a result of closing out infill communities and opening new communities in surrounding infill-adjacent areas.

New Home Orders

The table below represents new home orders and backlog related to our builder operations segments, excluding mechanic’s lien contracts (dollars in thousands):

	Six Months Ended June 30,
	2024			2023			Change			%
Net new home orders	1,926			1,889			37			2.0	%
Revenue from net new home orders	$	1,085,191		$	1,120,423		$	(35,232)		(3.1)	%
Average selling price of net new home orders	$	563.4		$	593.1		$	(29.7)		(5.0)	%
Cancellation rate	6.5		%	6.7		%	(0.2)		%	(3.0)	%
Absorption rate per average active selling community per quarter	9.8			11.5			(1.7)			(14.8)	%
Average active selling communities	98			82			16			19.5	%
Active selling communities at end of period	105			86			19			22.1	%

Net new home orders increased 2.0% over the prior year period while our average active selling communities increased 19.5%. As a result, our absorption rate per average active selling community decreased 14.8% year over year, which was primarily due to the impact of increased mortgage rates, the metering of sales in certain infill communities, and what we believe is the return of pre-pandemic seasonality during the second quarter. The 3.1% decrease in revenue from net new home orders is primarily attributable to a higher mix of sales from newer, in-fill adjacent communities at lower average selling prices and fewer sales from closed-out, infill communities.

Our cancellation rate, which refers to sales contracts canceled divided by sales contracts executed during the relevant period, was 6.5% for the six months ended June 30, 2024, compared to 6.7% for the six months ended June 30, 2023. Our cancellation rate remained in a historically low range under 10.0% since December 31, 2022.

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Residential Units Gross Margin

The table below represents the components of residential units gross margin (dollars in thousands):

	Six Months Ended June 30,
	2024				2023
Home closings revenue	$	990,042	100.0	%	$	903,566	100.0	%
Cost of homebuilding units	653,232		66.0	%	637,349		70.5	%
Homebuilding gross margin	$	336,810	34.0	%	$	266,217	29.5	%
Mechanic’s lien contracts revenue	$	380	100.0	%	$	1,241	100.0	%
Cost of mechanic’s lien contracts	264		69.5	%	805		64.9	%
Mechanic’s lien contracts gross margin	$	116	30.5	%	$	436	35.1	%
Residential units revenue	$	990,422	100.0	%	$	904,807	100.0	%
Cost of residential units	653,496		66.0	%	638,154		70.5	%
Residential units gross margin	$	336,926	34.0	%	$	266,653	29.5	%

Residential units revenue increased $85.6 million or 9.5% during the six months ended June 30, 2024 due to the increase in home deliveries of 17.1%. Cost of residential units for the six months ended June 30, 2024 increased by $15.3 million, or 2.4%, compared to the six months ended June 30, 2023 due to a combination of lower direct construction costs and lower lot costs associated with the higher mix of deliveries from infill-adjacent communities.

Residential units gross margin for the six months ended June 30, 2024 increased 450 bps to 34.0%, from 29.5% for the six months ended June 30, 2023. The increase in residential units gross margin is attributable to product mix and limited competition in our infill and infill-adjacent community sites.

Land and Lots Revenue

The table below represents lots closed and land and lots revenue (dollars in thousands):

	Six Months Ended June 30,
	2024		2023		Change		%
Lots revenue	$	4,844	$	3,543	$	1,301	36.7	%
Land revenue	12,703		$	—	12,703		100.0%
Land and lots revenue	$	17,547	$	3,543	$	14,004	395.3	%
Lots closed	71		36		35		97.2	%
Average sales price of lots closed	$	68.2	$	98.4	$	(30.2)	(30.7)	%

From time to time we will opportunistically sell finished lots to other homebuilders when we determine that we have excess capacity in specific neighborhoods or submarkets. Lots revenue increased by $1.3 million during the six months ended June 30, 2024. Land revenue represents sales of two tracts of commercial land during the six months ended June 30, 2024.

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Selling, General and Administrative Expenses

The table below represents the components of selling, general and administrative expenses (dollars in thousands):

	Six Months Ended June 30,				As Percentage of Segment Revenue
	2024		2023		2024		2023
Builder operations	$	104,316	$	94,979
Corporate, other and unallocated (income) expense	3,713		(4)
Net builder operations	108,029		94,975		10.9	%	10.5	%
Land development	143		199		0.8	%	5.6	%
Total selling, general and administrative expenses	$	108,172	$	95,174	10.7	%	10.5	%

Selling, general and administrative expenses as a percentage of revenue was 10.7% by for the six months ended June 30, 2024 which is substantially in line with 10.5% for the six months ended June 30, 2023.

Builder Operations

Selling, general and administrative expenses as a percentage of revenue for builder operations increased from 10.5% to 10.9% mainly due to an increase in salary expenses. Builder operations expenditures include salary expenses, sales commissions, and community costs such as advertising and marketing expenses, rent, professional fees, and non-capitalized property taxes.

Corporate, Other and Unallocated

Selling, general and administrative expenses for the corporate, other and unallocated non-operating segment for the six months ended June 30, 2024 were $3.7 million and de minimis for the six months ended June 30, 2023. The increase was driven by incentive compensation and salary expenses during the six months ended June 30, 2024. Corporate, other and unallocated expenses generally include capitalized overhead adjustments that are not allocated to builder operations segments.

Equity in Income of Unconsolidated Entities

Equity in income of unconsolidated entities decreased to $3.8 million, or 61.9%, for the six months ended June 30, 2024, compared to $9.9 million for the six months ended June 30, 2023. The decrease is mainly due to the sale of our ownership interest in Challenger during the three months ended March 31, 2024, wherein, we recognized only one month of net earnings from this investment compared to six months in the prior year. See Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of Green Brick’s share in net earnings by unconsolidated entity.

Other Income, Net

Other income, net, increased to $21.3 million for the six months ended June 30, 2024, compared to $9.1 million for the six months ended June 30, 2023. The increase was primarily due to a $10.7 million gain in the sale of our investment in Challenger.

Income Tax Expense

Income tax expense was $48.7 million for the six months ended June 30, 2024 compared to $42.2 million for the six months ended June 30, 2023. The increase was substantially due to higher taxable income partially offset by a lower effective tax rate, lower state tax rates, and a discrete tax benefit for equity compensation deductions. See Note 11 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for a discussion on the Company’s income tax expense for the six months ended June 30, 2024.

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Lots Owned and Controlled

The following table presents the lots we owned or controlled, including lot option contracts, as of June 30, 2024 and December 31, 2023. Owned lots are those for which we hold title, while controlled lots are those for which we have the contractual right to acquire title but we do not currently own.

	June 30, 2024						December 31, 2023
	Central		Southeast		Total		Central		Southeast		Total
Lots owned
Finished lots	4,142		753		4,895		4,014		964		4,978
Lots in communities under development	18,332		1,492		19,824		9,122		1,335		10,457
Land held for future development(1)	3,800		—		3,800		8,366		—		8,366
Total lots owned	26,274		2,245		28,519		21,502		2,299		23,801
Lots controlled
Lots under third party option contracts	946		—		946		1,169		—		1,169
Land under option for future acquisition and development	698		739		1,437		1,710		460		2,170
Lots under option through unconsolidated development joint ventures	2,128		283		2,411		1,210		331		1,541
Total lots controlled	3,772		1,022		4,794		4,089		791		4,880
Total lots owned and controlled (2)	30,046		3,267		33,313		25,591		3,090		28,681
Percentage of lots owned	87.4	%	68.7	%	85.6	%	84.0	%	74.4	%	83.0	%

(1) Land held for future development consist of raw land parcels where development activities have been postponed due to market conditions or other factors.

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

The following table presents additional information on the lots we controlled as of June 30, 2024 and December 31, 2023:

	June 30, 2024		December 31, 2023
Total lots owned(1)	28,519		23,801
Land under option for future acquisition and development	1,437		2,170
Lots under option through unconsolidated development joint ventures	2,411		1,541
Total lots self-developed	32,367		27,512
Self-developed lots as a percentage of total lots owned and controlled(1)	97.2	%	95.9	%

(1) Total lots owned includes finished lot purchases, which were less than 2.4% of total lots self-developed as of June 30, 2024.

Liquidity and Capital Resources Overview

As of June 30, 2024 and December 31, 2023, we had $133.3 million and $179.8 million of unrestricted cash and cash equivalents, respectively. Our historical cash management strategy includes redeploying net cash from the sale of home inventory to acquire and develop land and lots that represent opportunities to generate desired margins and returns, and using cash to make additional investments in business acquisitions, joint ventures, or other strategic activities.

Our principal uses of capital for the six months ended June 30, 2024 were home construction, land purchases, land development, repayments of debt, operating expenses, and payment of routine liabilities. Historically, we have used funds generated by operations and available borrowings to meet our short-term working capital requirements. We remain focused on generating positive margins in our homebuilding operations and acquiring desirable land positions in order to maintain a strong balance sheet and remain poised for continued growth.

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Cash flows for each of our communities depend on the community’s stage in the development cycle. Early stages of development or expansion require significant cash outlays for land acquisitions, entitlements and other approvals, roads, utilities, general landscaping and other amenities, and home construction. These costs are a component of our inventory and are not recognized in our statement of income until a home closes. In the later stages of community life cycle, cash inflows may significantly exceed earnings reported for financial statement purposes, as the cash outflows associated with home construction and land development previously occurred.

Effective February 1, 2024, we sold our ownership interest in GB Challenger, LLC (“Challenger”) to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash. We have been using and intend to continue to use the proceeds from the transaction for investment in and expansion of opportunities with those builders in which we hold a controlling or one-hundred percent (100%) ownership interest, particularly including the growth and expansion of our Trophy Signature Homes brand into the Austin and Houston markets and other potential new markets.

Our debt to total capitalization ratio, which is calculated as the sum of borrowings on lines of credit, the senior unsecured notes, and notes payable, net of debt issuance costs (“total debt”), divided by the total capitalization, which equals the sum of Green Brick Partners, Inc. stockholders’ equity and total debt, was approximately 17.7% as of June 30, 2024.

Additionally, as of June 30, 2024, our net debt to total capitalization ratio, which is a non-GAAP financial measure, remained low at 10.9%. It is our intent to prudently employ leverage to continue to invest in our land acquisition, development and homebuilding activities.

Reconciliation of a Non-GAAP Financial Measure

In this Quarterly Report on Form 10-Q, we utilize a financial measure of net debt to total capitalization ratio that is a non-GAAP financial measure as defined by the SEC. Net debt to total capitalization is calculated as total debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total debt less cash and cash equivalents. We present this measure because we believe it is useful to management and investors in evaluating the Company’s financing structure. We also believe this measure facilitates the comparison of our financing structure with other companies in our industry. Because this measure is not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), it 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.

The closest GAAP financial measure to the net debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net debt to total capitalization ratio as of June 30, 2024 (dollars in thousands):

	Gross			Cash and cash equivalents		Net
Total debt, net of debt issuance costs	$	309,572		$	(133,294)	$	176,278
Total Green Brick Partners, Inc. stockholders’ equity	1,439,235			—		1,439,235
Total capitalization	$	1,748,807		$	(133,294)	$	1,615,513
Debt to total capitalization ratio	17.7		%
Net debt to total capitalization ratio						10.9		%

Key Sources of Liquidity

The Company’s key sources of liquidity were funds generated by operations and borrowings during the six months ended June 30, 2024.

Cash Flows

The following summarizes our primary sources and uses of cash during the six months ended June 30, 2024 as compared to the six months ended June 30, 2023:

•Operating activities. Net cash provided by operating activities for the six months ended June 30, 2024 was $3.2 million, compared to $210.2 million during the six months ended June 30, 2023. The net cash outflows for the six months ended June 30, 2024 were primarily driven by an increase in inventory of $258.2 million, partially offset by $203.3 million of

29

cash generated from business operations, increase in customer deposits of $6.2 million and the deferral of expense payments through a $43.3 million increase in accrued expenses and accounts payable.

•Investing activities. Net cash provided by investing activities for the six months ended June 30, 2024 was $58.1 million, compared to net cash used of $7.8 million during the six months ended June 30, 2023. The cash inflows for the six months ended June 30, 2024 were primarily from proceeds of $64.0 million from the sale of our interest in Challenger in February 2024, partially offset by $3.5 million used in other investments in unconsolidated entities.

•Financing activities. Net cash used in financing activities for the six months ended June 30, 2024 was $102.6 million, compared to net cash used of $64.4 million during the six months ended June 30, 2023. The cash outflows were primarily related to share repurchases of $42.6 million, repayments of our senior unsecured notes of $25.0 million and notes payable of $12.9 million.

Debt Instruments

Secured Revolving Credit Facility – As of June 30, 2024 and December 31, 2023, we had no amounts outstanding under our $35.0 million Secured Revolving Credit Facility. Borrowings under the Secured Revolving Credit Facility bear interest at a floating rate per annum equal to the rate announced by Bank of America, N.A. as its “Prime Rate” less 0.25%, subject to a minimum rate. As amended, this credit agreement matures on May 1, 2025 and carries a minimum interest rate of 3.15%.

Unsecured Revolving Credit Facility – As of June 30, 2024 and December 31, 2023, we had no amounts outstanding under our Unsecured Revolving Credit Facility. Outstanding advances under the Unsecured Revolving Credit Facility accrue interest at the benchmark rate plus 2.5%. As amended, $300.0 million of the commitments under the credit facility mature on December 14, 2026, with the remaining $25.0 million of the commitments expiring December 14, 2025.

Senior Unsecured Notes - As of June 30, 2024, we had four series of senior unsecured notes outstanding which were each issued pursuant to a note purchase agreement. The aggregate principal amount of senior unsecured notes outstanding was $311.4 million as of June 30, 2024 compared to $336.2 million as of December 31, 2023, net of issuance costs.

•In August 2019, we issued $75.0 million of senior unsecured notes (the “2026 Notes”). Interest accrues at an annual rate of 4.0% and is payable quarterly. Principal on the 2026 Notes is required to be paid in increments of $12.5 million on each of August 8, 2024 and August 8, 2025 with a final principal payment of $50.0 million on August 8, 2026.

•In August 2020, we issued $37.5 million of senior unsecured notes (the “2027 Notes”). Interest accrues at an annual rate of 3.35% and is payable quarterly. Principal on the 2027 Notes is due on August 26, 2027.

•In February 2021, we issued $125.0 million of senior unsecured notes (the “2028 Notes”) of which $100.0 million is outstanding as of March 31, 2024. Interest accrues at an annual rate of 3.25% and is payable quarterly. Principal on the 2028 Notes is due in increments of $25.0 million annually on February 25 in each of 2025, 2026, 2027, and 2028.

•In December 2021, we issued $100.0 million of senior unsecured notes (the “2029 Notes”). Interest accrues at an annual rate of 3.25% and is payable quarterly. A required principal prepayment of $30.0 million is due on December 28, 2028. The remaining unpaid principal balance is due on December 28, 2029.

Optional prepayment is allowed with payment of a “make-whole” premium which fluctuates depending on market interest rates. Interest is payable quarterly in arrears.

Our debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of June 30, 2024. Specifically, under the most restrictive covenants, we are required to maintain the following:

•a minimum interest coverage (consolidated EBITDA to interest incurred) of no less than 2.0 to 1.0. As of June 30, 2024, our interest coverage on a last 12 months’ basis was 31.09 to 1.0;

•a Consolidated Tangible Net Worth of no less than approximately $913.0 million. As of June 30, 2024, our Consolidated Tangible Net Worth was $1,433.0 million; and

•a maximum debt to total capitalization rolling average ratio of no more than 40.0%. As of June 30, 2024, we had a rolling average ratio of 18.8%.

As of June 30, 2024, we believe that our cash on hand, capacity available under our lines of credit and cash flows from operations for the next twelve months will be sufficient to service our outstanding debt during the next twelve months and fund

30

our operations. For additional information on our lines of credit, senior unsecured notes, and notes payable, refer to Note 5 to the condensed consolidated financial statements located in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Preferred Equity

As of June 30, 2024 and December 31, 2023 we had 2,000,000 Depositary Shares issued and outstanding, each representing 1/1000 of a share of our 5.75% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock”). We will pay cumulative cash dividends on the Series A Preferred Stock, when and as declared by the Board, at the rate of 5.75% of the $25,000 liquidation preference per share. Dividends will be payable quarterly in arrears. During the six months ended June 30, 2024, we paid dividends of $1.4 million on the Series A Preferred Stock. On July 22, 2024, the Board declared a quarterly cash dividend of $0.359 per depositary share on the Series A Preferred Stock. The dividend is payable on September 15, 2024 to stockholders of record as of September 1, 2024.

Off-Balance Sheet Arrangements and Contractual Obligations

Land and Lot Option Contracts

In the ordinary course of business, we enter into land purchase contracts in order to procure lots for the construction of our homes in the future. We are subject to customary obligations associated with such contracts. These purchase contracts typically require an earnest money deposit, and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements, including obtaining applicable property and development entitlements.

We also utilize option contracts with lot sellers as a method of acquiring lots in staged takedowns, which are the schedules that dictate when lots must be purchased to help manage the financial and market risk associated with land holdings, and to reduce the use of funds from our corporate financing sources. Lot option contracts generally require us to pay a non-refundable deposit for the right to acquire lots over a specified period of time at pre-determined prices that typically include escalations in lot prices over time.

Our utilization of lot option contracts is dependent on, among other things, the availability of land sellers willing to enter into these arrangements, the availability of capital to finance the development of optioned lots, general housing market conditions and local market dynamics. Options may be more difficult to procure from land sellers in strong housing markets and are more prevalent in certain geographic regions.

We generally have the right, at our discretion, to terminate our obligations under both purchase contracts and option contracts by forfeiting the earnest money deposit with no further financial responsibility to the seller.

As of June 30, 2024, the Company had earnest money deposits of $11.4 million at risk associated with contracts to purchase raw land and finished lots representing 2,943 total lots past feasibility studies with an aggregate purchase price of approximately $168.8 million.

Seasonality

The homebuilding industry experiences seasonal fluctuations in quarterly operating results and capital requirements. We typically experience the highest new home order activity in spring and summer, although this activity is highly dependent on the number of active selling communities, timing of new community openings, interest rates and other market factors. Since it typically takes five to nine months to construct a new home, we normally deliver more homes in the second half of the year as spring and summer home orders are delivered. Because of this seasonality, home starts, construction costs and related cash outflows have historically been highest in the second and third quarters, and the majority of cash receipts from home deliveries occur typically during the second half of the year.

Critical Accounting Policies

Our critical accounting policies are described in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2023.

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Recent Accounting Pronouncements

See Note 1 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for recent accounting pronouncements.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer ( “CEO”) and principal financial officer (“CFO”), we conducted an evaluation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of June 30, 2024 in providing reasonable assurance that information required to be disclosed in the reports we file, furnish, submit or otherwise provide to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that information required to be disclosed in reports filed by us under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, in such a manner as to allow timely decisions regarding the required disclosures.

Changes in Internal Control over Financial Reporting

During the three months ended June 30, 2024, there were no changes in our internal controls that have materially affected or are reasonably likely to have a material effect on our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of equity securities by the issuer

The following table provides information about repurchases of our common stock during the three months ended June 30, 2024:

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs (1)
April 1 - April 30, 2024	116,560	$	54.00	116,560	$	93,391,000
May 1 - May 31, 2024	271,855	55.66		271,855	78,268,000
June 1 - June 30, 2024	303,324	56.12		303,324	61,255,000
Total	691,739	55.58		691,739	$	61,255,000

(1)    On April 27, 2022, the Board authorized a $100.0 million stock repurchase program (the “2022 Repurchase Plan”). On April 27, 2023, the Board approved a stock repurchase program authorizing us to repurchase, from time to time, up to an additional $100.0 million of our outstanding common stock (the “2023 Repurchase Plan”). The 2023 Repurchase Plan has no expiration and will continue until otherwise modified, completed, or terminated by the Board at any time in its sole discretion. There were no other repurchase plans as of June 30, 2024. Repurchases through March 15, 2024 were executed pursuant to the 2022 Repurchase Plan, which was fully utilized as of that date. Repurchases of approximately $38.7 million subsequent to March 15, 2024, were executed pursuant to the 2023 Repurchase Plan. As of June 30, 2024, the remaining dollar value of shares that may yet be purchased under the 2023 Repurchase Plan was approximately $61.3 million, excluding excise tax.

ITEM 5. OTHER INFORMATION

Insider trading arrangements and policies

During the three months ended June 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS

Number	Description
31.1*	Certification of the Company’s Chief Executive Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 7241).
31.2*	Certification of the Company’s Chief Financial Officer Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 7241).
32.1*	Certification of the Company’s Chief Executive Officer Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).
32.2*	Certification of the Company’s Chief Financial Officer Pursuant To Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).
101.INS**	XBRL Instance Document. The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document.
104**	Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101).

*    Filed with this Form 10-Q.

** Submitted electronically herewith.

33

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, thereunto duly authorized.

GREEN BRICK PARTNERS, INC.

/s/ James R. Brickman

By: James R. Brickman

Its: Chief Executive Officer

/s/ Richard A. Costello

By: Richard A. Costello

Its: Chief Financial Officer

Date:    July 31, 2024

34

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, James R. Brickman, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Green Brick Partners, Inc. for the period ended June 30, 2024;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:    July 31, 2024

By:	/s/ James R. Brickman
Name:	James R. Brickman
Title:	Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Richard A. Costello, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Green Brick Partners, Inc. for the period ended June 30, 2024;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:    July 31, 2024

By:	/s/ Richard A. Costello
Name:	Richard A. Costello
Title:	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Green Brick Partners, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James R. Brickman, Chief Executive Officer of the Company, certify to my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:    July 31, 2024

By:	/s/ James R. Brickman
Name:	James R. Brickman
Title:	Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Green Brick Partners, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard A. Costello, Chief Financial Officer of the Company, certify to my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:    July 31, 2024

By:	/s/ Richard A. Costello
Name:	Richard A. Costello
Title:	Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Jul. 25, 2024
Entity Information [Line Items]
Document Transition Report	false
Document Quarterly Report	true
Entity Incorporation, State or Country Code	DE
Entity Registrant Name	Green Brick Partners, Inc.
Entity Central Index Key	0001373670
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Tax Identification Number	20-5952523
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		44,496,772
Entity Shell Company	false
Entity File Number	001-33530
Entity Address, Address Line One	5501 Headquarters Drive, Suite 300W
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75024
City Area Code	(469)
Local Phone Number	573-6755
Entity Small Business	false
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	GRBK
Security Exchange Name	NYSE
Series A Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/1000th interest in a share of 5.75% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share)
Trading Symbol	GRBK PRA
Security Exchange Name	NYSE

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 133,294	$ 179,756
Restricted cash	24,882	19,703
Receivables	14,703	10,632
Inventory	1,792,056	1,533,223
Investments in unconsolidated entities	36,557	84,654
Right-of-use assets - operating leases	7,825	7,255
Property and equipment, net	6,975	7,054
Earnest money deposits	14,529	16,619
Deferred income tax assets, net	15,306	15,306
Intangible assets, net	324	367
Goodwill	680	680
Other assets	17,271	27,583
Total assets	2,064,402	1,902,832
Liabilities [Abstract]
Accounts payable	67,978	54,321
Accrued expenses	126,144	96,457
Customer and builder deposits	49,316	43,148
Lease liabilities - operating leases	8,756	7,898
Line of Credit, Current, After Adjustments	1,921	2,328
Senior unsecured notes, net	311,398	336,207
Notes payable	95	12,981
Total liabilities	561,766	548,684
Commitments and contingencies
Redeemable noncontrolling interest in equity of consolidated subsidiary	38,883	36,135
Green Brick Partners, Inc. stockholders’ equity
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	$ 47,603	$ 47,603
Shares, Outstanding	44,897,775	45,005,175
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Value, Issued	$ 449	$ 450
Treasury Stock, Value	(17,192)	0
Additional paid-in capital	246,863	255,614
Retained earnings	1,161,512	997,037
Total Green Brick Partners, Inc. stockholders’ equity	1,439,235	1,300,704
Noncontrolling interests	24,518	17,309
Total equity	1,463,753	1,318,013
Total liabilities and equity	$ 2,064,402	$ 1,902,832

XML

Condensed Consolidated Balance Sheets (Parenthetical)	Jun. 30, 2024 $ / shares shares
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000
Preferred stock, shares issued (in shares)	2,000
Preferred stock, shares outstanding (in shares)	2,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.01
Common stock, shares authorized (in shares)	100,000,000
Common stock, shares issued (in shares)	44,897,775
Common stock, shares outstanding (in shares)	44,897,775

XML

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total revenues	$ 560,631	$ 456,289	$ 1,007,969	$ 908,350
Total cost of revenues	370,965	313,354	670,046	640,809
Total gross profit	189,666	142,935	337,923	267,541
Selling, general and administrative expenses	57,602	49,229	108,172	95,174
Equity in income of unconsolidated entities	1,186	5,699	3,778	9,920
Other income, net	5,927	4,807	21,281	9,097
Income before income taxes	139,177	104,212	254,810	191,384
Income tax expense	23,896	23,148	48,738	42,179
Net income	115,281	81,064	206,072	149,205
Less: Net income attributable to noncontrolling interests	9,923	5,794	17,413	9,755
Net income attributable to Green Brick Partners, Inc.	$ 105,358	$ 75,270	$ 188,659	$ 139,450
Net income attributable to Green Brick Partners, Inc. per common share:
Basic (in dollars per share)	$ 2.34	$ 1.64	$ 4.18	$ 3.02
Diluted (in dollars per share)	$ 2.32	$ 1.63	$ 4.14	$ 3.00
Basic (in shares)	44,760	45,371	44,826	45,656
Diluted (in shares)	45,154	45,755	45,277	46,051
Residential Real Estate [Member]
Total revenues	$ 547,138	$ 454,445	$ 990,422	$ 904,807
Total cost of revenues	358,183	312,030	653,496	638,154
Real Estate, Other [Member]
Total revenues	13,493	1,844	17,547	3,543
Total cost of revenues	$ 12,782	$ 1,324	$ 16,550	$ 2,655

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Statement of Shareholders' Equity (Statement) - USD ($) $ in Thousands	Total	Additional Paid-in Capital [Member]	Common Stock [Member]	Retained Earnings	Noncontrolling Interest	Treasury Stock, Common	Parent
Common stock, shares issued (in shares)	46,032,930
Common Stock, Value, Issued	$ 460
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	$ 47,696
Preferred stock, shares outstanding (in shares)	2,000
Treasury Stock, Common, Shares	0
Treasury Stock, Value	$ 0
Additional paid-in capital	259,410
Retained Earnings (Accumulated Deficit)	754,341
Stockholders' Equity Attributable to Parent	1,061,907
Stockholders' Equity Attributable to Noncontrolling Interest	20,908
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,082,815
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture	(209,196)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition							$ 1,029
Dividends	$ (1,438)			$ (1,438)			(1,438)
Stock Repurchased During Period, Value	(27,991)						(27,991)
Stock Repurchased and Retired During Period, Shares			803,591			803,591
Treasury Stock, Retired, Cost Method, Amount		$ (4,592)		(23,391)		$ (27,991)
Net income attributable to Green Brick Partners, Inc.	139,450			139,450			139,450
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest					$ 6,296
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	145,746
Temporary Equity, Accretion to Redemption Value, Adjustment	(2,137)	(2,137)					(2,137)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	$ (5,233)	(5,230)	$ (3)				(5,233)
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	(59,857)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ (1,976)	1,975	1				(1,976)
Stock Repurchased During Period, Shares	(803,591)
Stock Repurchased and Retired During Period, Value			$ (8)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	$ 11,056				11,056
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition	$ 1,029	1,029
Common stock, shares issued (in shares)	46,211,430
Common Stock, Value, Issued	$ 462
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	$ 47,696
Preferred stock, shares outstanding (in shares)	2,000
Treasury Stock, Common, Shares	(467,875)
Treasury Stock, Value	$ 15,351
Additional paid-in capital	263,545
Retained Earnings (Accumulated Deficit)	817,802
Stockholders' Equity Attributable to Parent	1,114,154
Stockholders' Equity Attributable to Noncontrolling Interest	12,448
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,126,602
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture			(29,161)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	462	462					462
Dividends	(719)			(719)			(719)
Stock Repurchased During Period, Value	(12,640)					$ (12,640)	(12,640)
Stock Repurchased and Retired During Period, Shares			803,591			803,591
Treasury Stock, Retired, Cost Method, Amount	0	(4,592)	$ (8)	(23,391)		$ (27,991)	0
Noncontrolling Interest, Change in Redemption Value	2,450
Net income attributable to Green Brick Partners, Inc.	75,270			75,270			75,270
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest					3,700
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	78,970
Temporary Equity, Accretion to Redemption Value, Adjustment	$ (2,450)	(2,450)					(2,450)
Stock Repurchased During Period, Shares						(335,716)
Common stock, shares issued (in shares)	45,378,678
Common Stock, Value, Issued	$ 454
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	$ 47,696
Preferred stock, shares outstanding (in shares)	2,000
Preferred Stock, Value, Outstanding	$ 47,696
Treasury Stock, Common, Shares	0
Treasury Stock, Value	$ 0
Additional paid-in capital	256,965
Retained Earnings (Accumulated Deficit)	868,962
Stockholders' Equity Attributable to Parent	1,174,077
Stockholders' Equity Attributable to Noncontrolling Interest	16,148
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,190,225
Common stock, shares issued (in shares)	45,005,175
Common Stock, Value, Issued	$ 450
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	$ 47,603
Preferred stock, shares outstanding (in shares)	2,000
Treasury Stock, Common, Shares	0
Treasury Stock, Value	$ 0
Additional paid-in capital	255,614
Retained Earnings (Accumulated Deficit)	997,037
Stockholders' Equity Attributable to Parent	1,300,704
Stockholders' Equity Attributable to Noncontrolling Interest	17,309
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,318,013
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture			(636,777)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	1,292	1,292					1,292
Dividends	(1,438)			(1,438)			(1,438)
Stock Repurchased During Period, Value	(42,590)					$ (42,590)	(42,590)
Stock Repurchased and Retired During Period, Shares			459,656			459,656
Treasury Stock, Retired, Cost Method, Amount		(2,647)		(22,746)		$ (25,398)
Noncontrolling Interest, Change in Redemption Value	(1,965)	(1,965)					(1,965)
Net income attributable to Green Brick Partners, Inc.	188,659			188,659			188,659
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest					13,994
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	202,653
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	(5,849)	(5,843)	$ (6)				(5,849)
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation			(284,521)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(11,276)	(11,274)	$ 2				(11,276)
Stock Repurchased During Period, Shares						(762,980)
Stock Repurchased and Retired During Period, Value			$ (5)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	$ 6,785				6,785
Common stock, shares issued (in shares)	45,096,392
Common Stock, Value, Issued	$ 451
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	$ 47,603
Preferred stock, shares outstanding (in shares)	2,000
Treasury Stock, Common, Shares	(71,241)
Treasury Stock, Value	$ 3,758
Additional paid-in capital	259,412
Retained Earnings (Accumulated Deficit)	1,079,619
Stockholders' Equity Attributable to Parent	1,383,327
Stockholders' Equity Attributable to Noncontrolling Interest	16,364
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,399,691
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture			(500,000)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	779	779					779
Dividends	(719)			(719)			(719)
Stock Repurchased During Period, Value	(38,832)					$ (38,832)	(38,832)
Stock Repurchased and Retired During Period, Shares			459,656
Treasury Stock, Retired, Cost Method, Amount	0	(2,647)	$ (5)	(22,746)		$ (25,398)	0
Noncontrolling Interest, Change in Redemption Value	(1,565)	(1,565)					(1,565)
Net income attributable to Green Brick Partners, Inc.	105,358			$ 105,358			105,358
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest					$ 8,154
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest	113,512
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture		(5)	$ (5)
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation			(238,961)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ (9,113)	$ (9,111)	$ (2)				$ 9,113
Stock Repurchased During Period, Shares						(691,739)
Treasury Stock, Shares, Retired						459,656
Common stock, shares issued (in shares)	44,897,775
Common Stock, Value, Issued	$ 449
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	$ 47,603
Preferred stock, shares outstanding (in shares)	2,000
Preferred Stock, Value, Outstanding	$ 47,603
Treasury Stock, Common, Shares	(303,324)
Treasury Stock, Value	$ 17,192
Additional paid-in capital	246,863
Retained Earnings (Accumulated Deficit)	1,161,512
Stockholders' Equity Attributable to Parent	1,439,235
Stockholders' Equity Attributable to Noncontrolling Interest	24,518
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 1,463,753

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 206,072	$ 149,205
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	2,375	1,584
Loss (gain) on disposal of property and equipment, net	71	(146)
Share-based compensation expense	7,144	5,966
Equity in income of unconsolidated entities	(3,778)	(9,920)
Allowances for option deposits and pre-acquisition costs	12	47
Equity Method Investment, Realized Gain (Loss) on Disposal	(10,718)
Distributions of income from unconsolidated entities	2,121	7,324
Changes in operating assets and liabilities:
Increase in receivables	(4,071)	(1,769)
(Increase) decrease in inventory	(258,236)	18,938
Decrease in earnest money deposits	2,090	7,773
Decrease in other assets	10,589	888
Increase in accounts payable	13,657	5,660
Increase in accrued expenses	29,683	10,479
Increase in customer and builder deposits	6,168	14,139
Net cash provided by operating activities	3,179	210,168
Proceeds from Sale of Equity Method Investments	63,960
Cash flows from investing activities:
Investments in unconsolidated entities	(3,488)	(4,980)
Purchase of property and equipment, net of disposals	(2,324)	(2,852)
Net cash provided by (used in) investing activities	58,148	(7,832)
Cash flows from financing activities:
Borrowings from lines of credit	0	22,000
Repayments of lines of credit	0	(42,000)
Repayments of Unsecured Debt	(25,000)	0
Proceeds from notes payable	0	63
Repayments of notes payable	(12,884)	(95)
Payments of debt issuance costs	0	(72)
Payments of withholding tax on vesting of restricted stock awards	(11,276)	(1,975)
Repurchases of common stock	(42,590)	(27,991)
Dividends paid	(1,438)	(1,438)
Distributions to redeemable noncontrolling interest	(2,637)	(1,840)
Distributions to noncontrolling interests	(6,785)	(11,056)
Net cash used in financing activities	(102,610)	(64,404)
Net (decrease) increase in cash and cash equivalents and restricted cash	(41,283)	137,932
Cash and cash equivalents and restricted cash, beginning of period	199,459	93,270
Cash and cash equivalents and restricted cash, end of period	158,176	231,202
Supplemental Cash Flow Information [Abstract]
Income Taxes Paid, Net	$ 27,716	$ 39,071

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”), but do not include all of the information and footnotes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments of a normal, recurring nature necessary to fairly state our financial position, results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024 or subsequent periods due to seasonal variations and other factors.

Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, (together, the “Company”, “we”, or “Green Brick”) and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary.

All intercompany balances and transactions have been eliminated in consolidation.

The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses, if any, is included in the condensed consolidated statements of income.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

For a complete set of the Company’s significant accounting policies, refer to Note 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. 

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the FASB in the form of Accounting Standard Updates (“ASUs”) to the FASB ASC. We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually disclose specific categories in the income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of (i) significant segment expenses that are regularly provided to the chief

operating decision maker (“CODM”) and included within the segment measure of profit or loss, (ii) an amount and description of its composition for other segment items to reconcile to segment profit or loss, and (iii) the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its Consolidated Financial Statements and disclosures.

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Inventory

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventory

2. INVENTORY

A summary of inventory is as follows (in thousands):

	June 30, 2024		December 31, 2023
Homes completed or under construction	$	646,153	$	559,488
Land and lots - developed and under development	1,123,602		921,241
Land held for future development(1)	14,946		48,991
Land held for sale	7,355		3,503
Total inventory	$	1,792,056	$	1,533,223

(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred.

As of June 30, 2024, the Company reviewed the performance and outlook for all of its communities and land inventory for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. As of June 30, 2024, one selling community had an indicator of impairment. The Company estimated the remaining undiscounted cash flows for this community and determined its carrying value of $20.9 million does not exceed the community’s fair value. For the three and six months ended June 30, 2024 and 2023, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.

A summary of interest costs incurred, capitalized and expensed is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024		2023
Interest capitalized at beginning of period	$	24,893		$	22,847		$	24,126	$	22,752
Interest incurred	3,472			3,624			6,923		7,367
Interest charged to cost of revenues	(3,131)			(3,872)			(5,815)		(7,520)
Interest capitalized at end of period	$	25,234		$	22,599		$	25,234	$	22,599
Capitalized interest as a percentage of inventory	1.4		%	1.6		%

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Payables and Accruals

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure

A summary of the Company’s accrued expenses is as follows (in thousands):

	June 30, 2024		December 31, 2023
Real estate development reserve to complete(1)	$	30,698	$	26,063
Warranty reserve	27,139		23,474
Federal income tax payable(2)	17,994		—
Accrued property tax payable	10,460		5,003
Accrued compensation	14,637		14,960
Other accrued expenses	25,216		26,957
Total accrued expenses	$	126,144	$	96,457

(1)The Company’s real estate development reserve to complete consists of estimated future costs to complete the development of its communities.

(2)On May 28, 2024, the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in certain Texas counties that were affected by severe weather on April 26, 2024. For the affected taxpayers, the IRS extended the due date to November 1, 2024 for any estimated income tax payments due on or after April 26, 2024.

Warranties

Warranty accruals are included within accrued expenses on the condensed consolidated balance sheets. Warranty activity during the three and six months ended June 30, 2024 and 2023 consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Warranty accrual, beginning of period	$	25,116	$	19,532	$	23,474	$	17,945
Warranties issued	3,373		2,876		6,126		4,921
Changes in liability for existing warranties	53		(82)		251		551
Payments made	(1,403)		(1,502)		(2,712)		(2,593)
Warranty accrual, end of period	$	27,139	$	20,824	$	27,139	$	20,824

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Investments, Equity Method and Joint Ventures

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Entities

3. INVESTMENT IN UNCONSOLIDATED ENTITIES

A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):

	June 30, 2024		December 31, 2023
GB Challenger, LLC(1)	$	—	$	52,666
GBTM Sendera, LLC	20,804		19,866
EJB River Holdings, LLC	12,156		10,867
Rainwater Crossing Single-Family, LLC	2,550		—
BHome Mortgage, LLC	1,047		1,255
Total investment in unconsolidated entities	$	36,557	$	84,654

(1)Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC for approximately $64.0 million in cash.

Sale of GB Challenger Ownership Interest

Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC (“Challenger”) to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash. A gain on this sale of $10.7 million is included in other income, net in the condensed consolidated statements of income.

Rainwater Crossing Single-Family, LLC Joint Venture

On February 15, 2024, a wholly owned subsidiary of the Company established a joint venture (“JV”), Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”), with Rainwater Single Family S-CORP to develop a tract of land in Celina, Texas. Both parties hold a 50% ownership interest in Rainwater Crossing. The Company evaluated the JV agreements and determined that it has a variable interest in this entity, but the Company is not its primary beneficiary. Specifically, the Company determined that it does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. Therefore, the Company’s investment in Rainwater Crossing is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s condensed consolidated balance sheets.

As of June 30, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $22.4 million, representing its $2.6 million investment and the Company’s remaining commitment to contribute to the joint venture $15.0 million in quarterly payments through March 31, 2029 and $4.8 million upon the joint venture’s initial land contribution. The Company will also fund the development costs related to this project.

A summary of the unaudited condensed financial information of the unconsolidated entities as of June 30, 2024 and December 31, 2023 that are accounted for by the equity method is as follows (in thousands):

	June 30, 2024		December 31, 2023
Assets:
Cash	$	6,099	$	23,549
Accounts receivable	561		4,207
Bonds and notes receivable	19,363		2,838
Loans held for sale, at fair value	7,328		7,452
Inventory	66,787		182,550
Other assets	570		6,425
Total assets	$	100,708	$	227,021
Liabilities:
Accounts payable	$	3,653	$	7,151
Accrued expenses and other liabilities	2,594		10,265
Notes payable	27,573		49,701
Total liabilities	33,820		67,117
Owners’ equity:
Green Brick	34,681		80,968
Others	32,207		78,936
Total owners’ equity	66,888		159,904
Total liabilities and owners’ equity	$	100,708	$	227,021

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues	$	8,078	$	74,747	$	37,817	$	133,070
Costs and expenses	5,680		63,420		30,187		113,146
Net earnings of unconsolidated entities	$	2,398	$	11,327	$	7,630	$	19,924
Company’s share in net earnings of unconsolidated entities	$	1,186	$	5,699	$	3,778	$	9,920

A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
GB Challenger, LLC(1)	$	—	$	4,487	$	929	$	7,512
EJB River Holdings, LLC	520		571		1,290		1,074
BHome Mortgage, LLC	666		641		1,559		1,334
Total net earnings from unconsolidated entities	$	1,186	$	5,699	$	3,778	$	9,920

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Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt Disclosure

. DEBT

Lines of Credit

Borrowings on lines of credit outstanding, net of debt issuance costs, as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

	June 30, 2024		December 31, 2023
Secured Revolving Credit Facility	$	—	$	—
Unsecured Revolving Credit Facility	—		—
Debt issuance costs, net of amortization	(1,921)		(2,328)
Total borrowings on lines of credit, net	$	(1,921)	$	(2,328)

Secured Revolving Credit Facility

The Company is party to a revolving credit facility (the “Secured Revolving Credit Facility”) with Inwood National Bank, which provides for an aggregate commitment amount of $35.0 million. The Secured Revolving Credit Facility matures on May 1, 2025 and it carries a minimum interest rate of 3.15%. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date.

As of June 30, 2024 there were no letters of credit outstanding under our Secured Revolving Credit Facility and the net available commitment amount was $35.0 million.

Unsecured Revolving Credit Facility

The Company is party to a credit agreement, providing for a senior, unsecured revolving credit facility (the “Unsecured Revolving Credit Facility”). On December 8, 2023, the Company entered into the Eleventh Amendment to this credit agreement which was amended to revise certain financial covenants in order to appropriately reflect the Company’s size and growth. The Eleventh Amendment also extends the maturity of $300.0 million of the commitments under the credit facility through December 14, 2026, with the remaining $25.0 million commitment expiring December 14, 2025.

The Unsecured Revolving Credit Facility is guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries.

Senior Unsecured Notes

Senior unsecured notes, net of debt issuance costs, as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

	June 30, 2024		December 31, 2023
4.00% senior unsecured notes due in 2026 (“2026 Notes”)	$	75,000	$	75,000
3.35% senior unsecured notes due in 2027 (“2027 Notes”)	37,500		37,500
3.25% senior unsecured notes due in 2028 (“2028 Notes”)	100,000		125,000
3.25% senior unsecured notes due in 2029 (“2029 Notes”)	100,000		100,000
Debt issuance costs, net of amortization	(1,102)		(1,293)
Total senior unsecured notes, net	$	311,398	$	336,207

The Senior Unsecured Notes are guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries. Optional prepayment of each of the Senior Unsecured Notes is allowed with a payment of a “make-whole” penalty which fluctuates depending on market interest rates. Interest is payable quarterly in arrears.

2026 Notes

Principal on the 2026 Notes is required to be paid in increments of $12.5 million on August 8, 2024 and $12.5 million on August 8, 2025. The final principal payment of $50.0 million is due on August 8, 2026.

2027 Notes

The aggregate principal amount of the 2027 Notes is due on August 26, 2027.

2028 Notes

Principal on the 2028 Notes is due in increments of $25.0 million annually on February 25 in each of 2025, 2026, 2027, and 2028.

2029 Notes

Principal on the 2029 Notes of $30.0 million is due on December 28, 2028 and the remaining principal amount of $70.0 million is due on December 28, 2029.

Our debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of June 30, 2024.

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Business Combination

6 Months Ended

Jun. 30, 2024

Business Combinations [Abstract]

Business Combination

The Company has a noncontrolling interest attributable to the 20% minority interest in GRBK GHO Homes, LLC (“GRBK GHO”) owned by its Florida-based partner that is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s condensed consolidated financial statements.

On March 23, 2023, the Company and the minority partner amended the operating agreement of GRBK GHO to change the start of the put and purchase options from April 2024 to April 2027. Refer to Note 2 in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for details on the put/call structure of this agreement.

The following tables show the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30,
	2024		2023
Redeemable noncontrolling interest, beginning of period	$	38,186	$	30,291
Net income attributable to redeemable noncontrolling interest partner	1,769		2,094
Distributions of income to redeemable noncontrolling interest partner	(2,637)		(1,840)
Change in fair value of redeemable noncontrolling interest	1,565		2,450
Redeemable noncontrolling interest, end of period	$	38,883	$	32,995

	Six Months Ended June 30,
	2024		2023
Redeemable noncontrolling interest, beginning of period	$	36,135	$	29,239
Net income attributable to redeemable noncontrolling interest partner	3,420		3,459
Distributions of income to redeemable noncontrolling interest partner	(2,637)		(1,840)
Change in fair value of redeemable noncontrolling interest	1,965		2,137
Redeemable noncontrolling interest, end of period	$	38,883	$	32,995

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Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders' Equity Note Disclosure

7. STOCKHOLDERS’ EQUITY

2022 Share Repurchase Program

During the six month period ended June 30, 2024, the Company completed discrete open market repurchases under the 2022 Repurchase Plan of 65,481 shares for approximately $3.4 million, excluding excise tax. The Company completed the repurchases under the 2022 Repurchase Plan on March 15, 2024. The repurchased shares were subsequently retired.

2023 Share Repurchase Program

On April 27, 2023, the Board approved a new stock repurchase program (the “2023 Repurchase Plan”) that authorizes the Company to purchase, from time to time, up to an additional $100.0 million of our outstanding common stock through open market repurchases in compliance with Rule 10b-18 under the Securities Exchange Act of 1924, as amended (the “Exchange Act”) and/or in privately negotiated transactions based on market and business conditions, applicable legal requirements and other factors. Shares repurchased will be retired. The 2023 Repurchase Plan has no time deadline and will continue until otherwise modified, completed, or terminated by the Board at any time in its sole discretion.

During the three and six months ended June 30, 2024, the Company repurchased 691,739 and 697,499 shares, respectively, for approximately $38.4 million and $38.7 million, excluding excise tax. As of June 30, 2024, the remaining dollar value of shares that may be repurchased under the 2023 Repurchase Plan was $61.3 million, excluding excise tax. As of June 30, 2024, 459,656 of the repurchased shares were retired.

Preferred Stock

The table below presents a summary of the perpetual preferred stock outstanding at June 30, 2024 and December 31, 2023.

Series	Description	Initial date of issuance	Total Shares Outstanding(1)	Liquidation Preference per Share (in dollars)		Carrying Value (in thousands)		Per Annum Dividend Rate		Redemption Period
Series A(1)	5.75% Cumulative Perpetual	December 2021	2,000	$	25	$	50,000	5.75	%	n/a

(1)     Ownership is held in the form of Depositary Shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared.

Dividends

Dividends paid on our Series A preferred stock were $0.7 million and $1.4 million for each of the three and six months ended June 30, 2024 and 2023.

On July 22, 2024, the Board declared a quarterly cash dividend of $0.359 per depositary share on the Company’s preferred stock. The dividend is payable on September 15, 2024 to stockholders of record as of September 1, 2024.

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Compensation Related Costs, Share Based Payments

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Share-based Payment Arrangement

SHARE-BASED COMPENSATION

The 2014 Omnibus Equity Incentive Plan and the 2024 Omnibus Incentive Plan, are administered by the Board and allow for the grant of stock awards (“SAs”), restricted stock awards (“RSAs”), performance restricted stock units (“PRSUs”), restricted stock units (RSUs), stock options and other stock based awards.

2024 Omnibus Incentive Plan

On June 11, 2024, the 2024 Omnibus Incentive Plan was approved by the stockholders of the Company. As of June 11, 2024, no further awards may be made under the Green Brick Partners, Inc. 2014 Omnibus Equity Incentive Plan.

Share-Based Award Activity

During the six months ended June 30, 2024, the Company granted SAs to executive officers, RSAs to non-employee members of the Board, and PRSUs to employees. The SAs granted to the executive officers were 100% vested and non-forfeitable on the grant date. Non-vested stock awards are usually granted with a one-year vesting for non-employee directors, two-year cliff vesting for employee RSAs, and three-year cliff vesting for PRSUs. The fair value of all share awards were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. Stock options were also exercised by an executive officer during the three months ended June 30, 2024. The Company withheld 284,521 shares of common stock from executive officers and employees at a total cost of $11.3 million, to satisfy statutory minimum tax requirements upon grant of the SAs, vesting of RSAs, and exercise of stock options.

A summary of share-based awards activity during the six months ended June 30, 2024 is as follows:

	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value per Share
Unvested, December 31, 2023	92	$	33.56
Granted	172	$	51.75
Vested	(149)	$	46.69
Forfeited	(1)	$	36.44
Unvested, June 30, 2024	114	$	43.77

Stock Options

A summary of stock options activity during the six months ended June 30, 2024 is as follows:

	Number of Shares (in thousands)	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding, December 31, 2023	500	$	7.49	0.82	$	22,225
Granted	—	—		—	—
Exercised	(500)	7.49		—	23,160
Forfeited	—	—		—	—
Options outstanding, June 30, 2024	—	$	—	—	$	—
Options exercisable, June 30, 2024	—	$	—	—	$	—

Share-Based Compensation Expense

Share-based compensation expense was $0.8 million and $0.5 million for the three months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024 and 2023, share-based compensation expense was $7.1 million and $6.0 million, respectively.

As of June 30, 2024, the estimated total remaining unamortized share-based compensation expense related to unvested RSAs and PRSUs, net of forfeitures, was $3.2 million which is expected to be recognized over a weighted-average period of 1.9 years.

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Revenue from Contract with Customer

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Disaggregation of Revenue

The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30, 2024				Three Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	389,168	$	13,493	$	322,154	$	1,844
Southeast	157,970		—		132,291		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Type of Customer
Homebuyers	$	547,138	$	—	$	454,445	$	—
Homebuilders and Multi-family Developers	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Product Type
Residential units	$	547,138	$	—	$	454,445	$	—
Land and lots	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Timing of Revenue Recognition
Transferred at a point in time	$	546,948	$	13,493	$	454,136	$	1,844
Transferred over time(1)	190		—		309		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

	Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	704,405	$	17,547	$	666,618	$	3,543
Southeast	286,017		—		238,189		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Type of Customer
Homebuyers	$	990,422	$	—	$	904,807	$	—
Homebuilders and Multi-family Developers	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Product Type
Residential units	$	990,422	$	—	$	904,807	$	—
Land and lots	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Timing of Revenue Recognition
Transferred at a point in time	$	990,042	$	17,547	$	903,566	$	3,543
Transferred over time(1)	380		—		1,241		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

Contract Balances

Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):

	June 30, 2024		December 31, 2023
Customer and builder deposits	$	49,316	$	43,148

The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by terminations of contracts.

The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three and six months ended June 30, 2024 and 2023 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Homebuyer deposits recognized as revenue	$	21,064	$	15,595	$	30,640	$	21,329

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $6.4 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel. The Company expects to recognize revenue of $5.8 million in the remainder of 2024 and $0.6 million in 2025.

The timing of lot takedowns is contingent upon a number of factors, including customer and business needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.

Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.

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Segment Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Financial information related to the Company’s reportable segments is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues: (1)
Builder operations
Central	$	389,168	$	322,154	$	704,515	$	666,618
Southeast	157,970		132,291		286,017		238,189
Total builder operations	547,138		454,445		990,532		904,807
Land development	13,493		1,844		17,437		3,543
Total revenues	$	560,631	$	456,289	$	1,007,969	$	908,350
Gross profit:
Builder operations
Central	$	142,534	$	107,878	$	252,200	$	210,283
Southeast	57,431		45,868		105,522		79,197
Total builder operations	199,965		153,746		357,722		289,480
Land development	775		858		1,080		1,546
Corporate, other and unallocated (2)	(11,074)		(11,669)		(20,879)		(23,485)
Total gross profit	$	189,666	$	142,935	$	337,923	$	267,541
Income before income taxes:
Builder operations
Central	$	104,803	$	74,800	$	180,324	$	142,817
Southeast	41,417		32,494		76,211		54,765
Total builder operations	146,220		107,294		256,535		197,582
Land development	1,542		1,140		2,015		1,915
Corporate, other and unallocated (3)	(8,585)		(4,222)		(3,740)		(8,113)
Income before income taxes	$	139,177	$	104,212	$	254,810	$	191,384

	June 30, 2024		December 31, 2023
Inventory:
Builder operations
Central	$	677,930	$	645,987
Southeast	333,065		314,087
Total builder operations	1,010,995		960,074
Land development	733,274		529,711
Corporate, other and unallocated (4)	47,787		43,438
Total inventory	$	1,792,056	$	1,533,223
Goodwill:
Builder operations - Southeast	$	680	$	680

(1)The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the condensed consolidated statements of income in periods when our builders have revenues from land or lot closings. Land and lot closings revenue were $13.5 million and $17.5 million for the three and six months ended June 30, 2024 and $1.8 million and $3.5 million for the three and six months ended June 30, 2023, respectively.

(2)Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments.

(3)Corporate, other and unallocated income (loss) before income taxes includes results from Green Brick Title, LLC, Ventana Insurance, LLC, and investments in unconsolidated subsidiaries, in addition to capitalized cost adjustments that are not allocated to operating segments.

(4)Corporate, other and unallocated inventory consists of capitalized overhead and interest related to homes under construction and land under development.

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Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Tax Disclosure

11. INCOME TAXES

The Company’s income tax expense for the three and six months ended June 30, 2024 was $23.9 million and $48.7 million, respectively, compared to $23.1 million and $42.2 million in the prior year periods. The effective tax rate was 17.2% and 19.1% for the three and six months ended June 30, 2024, respectively, compared to 22.2% and 22.0% in the comparable prior year periods. The change in the effective tax rate for the three and six months ended June 30, 2024 is primarily due to an improved rate benefit in the Energy Efficient Homes Tax credit as compared to pre-tax book income, lower state tax rates, and a discrete tax benefit for equity compensation deductions.

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Net Income Attributable to Green Brick Partners, Inc. Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Income Attributable to Green Brick Partners, Inc. Per Share

12. EARNINGS PER SHARE

The Company’s RSAs have the right to receive forfeitable dividends on an equal basis with common stock and its PRSUs do not participate in dividends with common stock. As such, these stock awards are not considered participating securities that must be included in the calculation of net income per share using the two-class method.

Basic earnings per common share is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of RSAs and PRSUs during each period. Net income applicable to common stockholders is net income adjusted for preferred stock dividends including dividends declared and cumulative dividends related to the current dividend period that have not been declared as of period end. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options, RSAs and PRSUs.

The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income attributable to Green Brick Partners, Inc.	$	105,358	$	75,270	$	188,659	$	139,450
Preferred dividends	(719)		(719)		(1,438)		(1,438)
Net income applicable to common stockholders	104,639		74,551		187,221		138,012
Weighted-average number of common shares outstanding - basic	44,760		45,371		44,826		45,656
Basic net income attributable to Green Brick Partners, Inc. per common share	$	2.34	$	1.64	$	4.18	$	3.02
Weighted-average number of common shares outstanding - basic	44,760		45,371		44,826		45,656
Dilutive effect of stock options and restricted stock awards	394		384		451		395
Weighted-average number of common shares outstanding - diluted	45,154		45,755		45,277		46,051
Diluted net income attributable to Green Brick Partners, Inc. per common share	$	2.32	$	1.63	$	4.14	$	3.00

The following shares which could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Antidilutive options to purchase common stock and restricted stock awards	—	(4)	—	(55)

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Fair Value Measurements

6 Months Ended

Jun. 30, 2024

USD ($)

Fair Value Disclosures [Abstract]

Fair Value Measurements

13. FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The Company’s financial instruments, none of which are held for trading purposes, include cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, senior unsecured notes, and notes payable.

Per the fair value hierarchy, level 1 financial instruments include: cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the condensed consolidated financial statements as of June 30, 2024 and December 31, 2023.

Level 2 financial instruments include borrowings on lines of credit, senior unsecured notes, and notes payable. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit are deemed to approximate fair value. The estimated fair value of the senior unsecured notes was $294.7 million and $322.5 million as of June 30, 2024 and December 31, 2023, respectively. The aggregate principal balance of the senior unsecured notes was $312.5 million as of June 30, 2024 and $337.5 million as of December 31, 2023.

There were no transfers between the levels of the fair value hierarchy for any of our financial instruments during the three and six months ended June 30, 2024 and 2023.

Fair Value Measurement Inputs and Valuation Techniques [Line Items]

Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net

$ 0

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Related Party Disclosures

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Party Transactions

14. RELATED PARTY TRANSACTIONS

During the three and six months ended June 30, 2024 and 2023, the Company had the following related party transactions in the normal course of business.

Corporate Officers

Trevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of CLH20, LLC (“Centre Living”). Green Brick’s ownership interest in Centre Living is 90% and Trevor Brickman’s ownership interest is 10%. Green Brick has 90% voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our condensed consolidated financial statements.

GRBK GHO

GRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During the three and six months ended June 30, 2024 and 2023, GRBK GHO incurred de minimis and $0.1 million rent expense, respectively, under such lease agreements. As of June 30, 2024 and December 31, 2023, there were no amounts due to the affiliated entities related to such lease agreements.

GRBK GHO receives title closing services on the purchase of land and third-party lots from an entity affiliated with the president of GRBK GHO. During the three and six months ended June 30, 2024 and 2023, GRBK GHO incurred de minimis fees related to such title closing services. As of June 30, 2024, and December 31, 2023, no amounts were due to the title company affiliate.

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Commitments and Contingencies - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2023

Jun. 30, 2024

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Letters of Credit Outstanding, Amount

$ 5.2

$ 13.5

Commitments and Contingencies

15. COMMITMENTS AND CONTINGENCIES

Letters of Credit and Performance Bonds

During the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of June 30, 2024 and December 31, 2023, letters of credit and performance bonds outstanding were $5.2 million and $13.5 million, respectively. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future.

Operating Leases

The Company has leases associated with office and design center space in Georgia, Texas, and Florida that, at the commencement date, have a lease term of more than 12 months and are classified as operating leases. The exercise of any extension options available in such operating lease contracts is not reasonably certain.

Operating lease cost of $0.4 million and $0.8 million for each of the three and six months ended June 30, 2024, and 2023, is included in selling, general and administrative expenses in the condensed consolidated statements of income. Cash paid for amounts included in the measurement of operating lease liabilities was $0.2 million and $0.3 million for the three and six months ended June 30, 2024, respectively, and $0.4 million and $0.9 million in the prior year periods.

As of June 30, 2024, the weighted-average remaining lease term and the weighted-average discount rate used in calculating the Company’s lease liabilities were 6.3 years and 7.4%, respectively.

The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the condensed consolidated balance sheet as of June 30, 2024 are presented below (in thousands):

Remainder of 2024	$	721
2025	1,827
2026	1,748
2027	1,722
2028	1,689
Thereafter	3,420
Total future lease payments	11,127
Less: Interest	2,371
Present value of lease liabilities	$	8,756

The Company elected the short-term lease recognition exemption for all leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For such leases, the Company does not recognize right-of-use assets or lease liabilities and instead recognizes lease payments in the condensed consolidated income statements on a straight-line basis. Short-term lease cost of $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively, and $0.3 million and $0.4 million for the comparable prior year periods, is included in selling, general and administrative expenses in the condensed consolidated statements of income.

Legal Matters

Lawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations.

The Company records an accrual for legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary.

In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”), but do not include all of the information and footnotes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments of a normal, recurring nature necessary to fairly state our financial position, results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024 or subsequent periods due to seasonal variations and other factors.

Principles of Consolidation

Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Green Brick Partners, Inc., its controlled subsidiaries, (together, the “Company”, “we”, or “Green Brick”) and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary.

All intercompany balances and transactions have been eliminated in consolidation.

Equity Method Investments

The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses, if any, is included in the condensed consolidated statements of income.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the FASB in the form of Accounting Standard Updates (“ASUs”) to the FASB ASC. We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually disclose specific categories in the income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of (i) significant segment expenses that are regularly provided to the chief

operating decision maker (“CODM”) and included within the segment measure of profit or loss, (ii) an amount and description of its composition for other segment items to reconcile to segment profit or loss, and (iii) the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its Consolidated Financial Statements and disclosures.

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Inventory (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Real Estate Inventory

A summary of inventory is as follows (in thousands):

	June 30, 2024		December 31, 2023
Homes completed or under construction	$	646,153	$	559,488
Land and lots - developed and under development	1,123,602		921,241
Land held for future development(1)	14,946		48,991
Land held for sale	7,355		3,503
Total inventory	$	1,792,056	$	1,533,223

(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred.

As of June 30, 2024, the Company reviewed the performance and outlook for all of its communities and land inventory for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. As of June 30, 2024, one selling community had an indicator of impairment. The Company estimated the remaining undiscounted cash flows for this community and determined its carrying value of $20.9 million does not exceed the community’s fair value. For the three and six months ended June 30, 2024 and 2023, the Company did not record an impairment adjustment to reduce the carrying value of communities or land inventory to fair value.

Summary of Real Estate Inventory Capitalized Interest Costs

A summary of interest costs incurred, capitalized and expensed is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024		2023
Interest capitalized at beginning of period	$	24,893		$	22,847		$	24,126	$	22,752
Interest incurred	3,472			3,624			6,923		7,367
Interest charged to cost of revenues	(3,131)			(3,872)			(5,815)		(7,520)
Interest capitalized at end of period	$	25,234		$	22,599		$	25,234	$	22,599
Capitalized interest as a percentage of inventory	1.4		%	1.6		%

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Payables and Accruals (Tables)

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

	June 30, 2024		December 31, 2023
Real estate development reserve to complete(1)	$	30,698	$	26,063
Warranty reserve	27,139		23,474
Federal income tax payable(2)	17,994		—
Accrued property tax payable	10,460		5,003
Accrued compensation	14,637		14,960
Other accrued expenses	25,216		26,957
Total accrued expenses	$	126,144	$	96,457

Schedule of Warranty Activity

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Warranty accrual, beginning of period	$	25,116	$	19,532	$	23,474	$	17,945
Warranties issued	3,373		2,876		6,126		4,921
Changes in liability for existing warranties	53		(82)		251		551
Payments made	(1,403)		(1,502)		(2,712)		(2,593)
Warranty accrual, end of period	$	27,139	$	20,824	$	27,139	$	20,824

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Investment in Unconsolidated Entities (Tables)

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):

	June 30, 2024		December 31, 2023
GB Challenger, LLC(1)	$	—	$	52,666
GBTM Sendera, LLC	20,804		19,866
EJB River Holdings, LLC	12,156		10,867
Rainwater Crossing Single-Family, LLC	2,550		—
BHome Mortgage, LLC	1,047		1,255
Total investment in unconsolidated entities	$	36,557	$	84,654

(1)Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC for approximately $64.0 million in cash.

Sale of GB Challenger Ownership Interest

Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC (“Challenger”) to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash. A gain on this sale of $10.7 million is included in other income, net in the condensed consolidated statements of income.

Rainwater Crossing Single-Family, LLC Joint Venture

On February 15, 2024, a wholly owned subsidiary of the Company established a joint venture (“JV”), Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”), with Rainwater Single Family S-CORP to develop a tract of land in Celina, Texas. Both parties hold a 50% ownership interest in Rainwater Crossing. The Company evaluated the JV agreements and determined that it has a variable interest in this entity, but the Company is not its primary beneficiary. Specifically, the Company determined that it does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. Therefore, the Company’s investment in Rainwater Crossing is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s condensed consolidated balance sheets.

As of June 30, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $22.4 million, representing its $2.6 million investment and the Company’s remaining commitment to contribute to the joint venture $15.0 million in quarterly payments through March 31, 2029 and $4.8 million upon the joint venture’s initial land contribution. The Company will also fund the development costs related to this project.

Investment in Unconsolidated Entities

3. INVESTMENT IN UNCONSOLIDATED ENTITIES

A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):

	June 30, 2024		December 31, 2023
GB Challenger, LLC(1)	$	—	$	52,666
GBTM Sendera, LLC	20,804		19,866
EJB River Holdings, LLC	12,156		10,867
Rainwater Crossing Single-Family, LLC	2,550		—
BHome Mortgage, LLC	1,047		1,255
Total investment in unconsolidated entities	$	36,557	$	84,654

(1)Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC for approximately $64.0 million in cash.

Sale of GB Challenger Ownership Interest

Effective February 1, 2024, the Company sold its ownership interest in GB Challenger, LLC (“Challenger”) to the entity that already held the controlling interest in Challenger for approximately $64.0 million in cash. A gain on this sale of $10.7 million is included in other income, net in the condensed consolidated statements of income.

Rainwater Crossing Single-Family, LLC Joint Venture

On February 15, 2024, a wholly owned subsidiary of the Company established a joint venture (“JV”), Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”), with Rainwater Single Family S-CORP to develop a tract of land in Celina, Texas. Both parties hold a 50% ownership interest in Rainwater Crossing. The Company evaluated the JV agreements and determined that it has a variable interest in this entity, but the Company is not its primary beneficiary. Specifically, the Company determined that it does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. Therefore, the Company’s investment in Rainwater Crossing is treated as an unconsolidated investment under the equity method of accounting and is included in investments in unconsolidated entities in the Company’s condensed consolidated balance sheets.

As of June 30, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $22.4 million, representing its $2.6 million investment and the Company’s remaining commitment to contribute to the joint venture $15.0 million in quarterly payments through March 31, 2029 and $4.8 million upon the joint venture’s initial land contribution. The Company will also fund the development costs related to this project.

A summary of the unaudited condensed financial information of the unconsolidated entities as of June 30, 2024 and December 31, 2023 that are accounted for by the equity method is as follows (in thousands):

	June 30, 2024		December 31, 2023
Assets:
Cash	$	6,099	$	23,549
Accounts receivable	561		4,207
Bonds and notes receivable	19,363		2,838
Loans held for sale, at fair value	7,328		7,452
Inventory	66,787		182,550
Other assets	570		6,425
Total assets	$	100,708	$	227,021
Liabilities:
Accounts payable	$	3,653	$	7,151
Accrued expenses and other liabilities	2,594		10,265
Notes payable	27,573		49,701
Total liabilities	33,820		67,117
Owners’ equity:
Green Brick	34,681		80,968
Others	32,207		78,936
Total owners’ equity	66,888		159,904
Total liabilities and owners’ equity	$	100,708	$	227,021

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues	$	8,078	$	74,747	$	37,817	$	133,070
Costs and expenses	5,680		63,420		30,187		113,146
Net earnings of unconsolidated entities	$	2,398	$	11,327	$	7,630	$	19,924
Company’s share in net earnings of unconsolidated entities	$	1,186	$	5,699	$	3,778	$	9,920

A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
GB Challenger, LLC(1)	$	—	$	4,487	$	929	$	7,512
EJB River Holdings, LLC	520		571		1,290		1,074
BHome Mortgage, LLC	666		641		1,559		1,334
Total net earnings from unconsolidated entities	$	1,186	$	5,699	$	3,778	$	9,920

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Debt (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Lines of Credit Outstanding

Lines of Credit

Borrowings on lines of credit outstanding, net of debt issuance costs, as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

	June 30, 2024		December 31, 2023
Secured Revolving Credit Facility	$	—	$	—
Unsecured Revolving Credit Facility	—		—
Debt issuance costs, net of amortization	(1,921)		(2,328)
Total borrowings on lines of credit, net	$	(1,921)	$	(2,328)

Schedule of Accounts, Notes, Loans and Financing Receivable

Senior Unsecured Notes

Senior unsecured notes, net of debt issuance costs, as of June 30, 2024 and December 31, 2023 consisted of the following (in thousands):

	June 30, 2024		December 31, 2023
4.00% senior unsecured notes due in 2026 (“2026 Notes”)	$	75,000	$	75,000
3.35% senior unsecured notes due in 2027 (“2027 Notes”)	37,500		37,500
3.25% senior unsecured notes due in 2028 (“2028 Notes”)	100,000		125,000
3.25% senior unsecured notes due in 2029 (“2029 Notes”)	100,000		100,000
Debt issuance costs, net of amortization	(1,102)		(1,293)
Total senior unsecured notes, net	$	311,398	$	336,207

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Business Combination (Tables)

6 Months Ended

Jun. 30, 2024

Business Combinations [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

The following tables show the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30,
	2024		2023
Redeemable noncontrolling interest, beginning of period	$	38,186	$	30,291
Net income attributable to redeemable noncontrolling interest partner	1,769		2,094
Distributions of income to redeemable noncontrolling interest partner	(2,637)		(1,840)
Change in fair value of redeemable noncontrolling interest	1,565		2,450
Redeemable noncontrolling interest, end of period	$	38,883	$	32,995

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Compensation Related Costs, Share Based Payments (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Share-Based Awards Activity

A summary of share-based awards activity during the six months ended June 30, 2024 is as follows:

	Number of Shares (in thousands)	Weighted Average Grant Date Fair Value per Share
Unvested, December 31, 2023	92	$	33.56
Granted	172	$	51.75
Vested	(149)	$	46.69
Forfeited	(1)	$	36.44
Unvested, June 30, 2024	114	$	43.77

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Financial information related to the Company’s reportable segments is as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues: (1)
Builder operations
Central	$	389,168	$	322,154	$	704,515	$	666,618
Southeast	157,970		132,291		286,017		238,189
Total builder operations	547,138		454,445		990,532		904,807
Land development	13,493		1,844		17,437		3,543
Total revenues	$	560,631	$	456,289	$	1,007,969	$	908,350
Gross profit:
Builder operations
Central	$	142,534	$	107,878	$	252,200	$	210,283
Southeast	57,431		45,868		105,522		79,197
Total builder operations	199,965		153,746		357,722		289,480
Land development	775		858		1,080		1,546
Corporate, other and unallocated (2)	(11,074)		(11,669)		(20,879)		(23,485)
Total gross profit	$	189,666	$	142,935	$	337,923	$	267,541
Income before income taxes:
Builder operations
Central	$	104,803	$	74,800	$	180,324	$	142,817
Southeast	41,417		32,494		76,211		54,765
Total builder operations	146,220		107,294		256,535		197,582
Land development	1,542		1,140		2,015		1,915
Corporate, other and unallocated (3)	(8,585)		(4,222)		(3,740)		(8,113)
Income before income taxes	$	139,177	$	104,212	$	254,810	$	191,384

	June 30, 2024		December 31, 2023
Inventory:
Builder operations
Central	$	677,930	$	645,987
Southeast	333,065		314,087
Total builder operations	1,010,995		960,074
Land development	733,274		529,711
Corporate, other and unallocated (4)	47,787		43,438
Total inventory	$	1,792,056	$	1,533,223
Goodwill:
Builder operations - Southeast	$	680	$	680

(1)The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the condensed consolidated statements of income in periods when our builders have revenues from land or lot closings. Land and lot closings revenue were $13.5 million and $17.5 million for the three and six months ended June 30, 2024 and $1.8 million and $3.5 million for the three and six months ended June 30, 2023, respectively.

(2)Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments.

(3)Corporate, other and unallocated income (loss) before income taxes includes results from Green Brick Title, LLC, Ventana Insurance, LLC, and investments in unconsolidated subsidiaries, in addition to capitalized cost adjustments that are not allocated to operating segments.

(4)Corporate, other and unallocated inventory consists of capitalized overhead and interest related to homes under construction and land under development.

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Net Income Attributable to Green Brick Partners, Inc. Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net income attributable to Green Brick Partners, Inc.	$	105,358	$	75,270	$	188,659	$	139,450
Preferred dividends	(719)		(719)		(1,438)		(1,438)
Net income applicable to common stockholders	104,639		74,551		187,221		138,012
Weighted-average number of common shares outstanding - basic	44,760		45,371		44,826		45,656
Basic net income attributable to Green Brick Partners, Inc. per common share	$	2.34	$	1.64	$	4.18	$	3.02
Weighted-average number of common shares outstanding - basic	44,760		45,371		44,826		45,656
Dilutive effect of stock options and restricted stock awards	394		384		451		395
Weighted-average number of common shares outstanding - diluted	45,154		45,755		45,277		46,051
Diluted net income attributable to Green Brick Partners, Inc. per common share	$	2.32	$	1.63	$	4.14	$	3.00

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following shares which could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands):

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Antidilutive options to purchase common stock and restricted stock awards	—	(4)	—	(55)

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Lessee, Operating Lease, Liability, Maturity

The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the condensed consolidated balance sheet as of June 30, 2024 are presented below (in thousands):

Remainder of 2024	$	721
2025	1,827
2026	1,748
2027	1,722
2028	1,689
Thereafter	3,420
Total future lease payments	11,127
Less: Interest	2,371
Present value of lease liabilities	$	8,756

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Significant Accounting Policies Leases, Adoption of ASC 842 (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Lease liabilities - operating leases	$ 8,756	$ 7,898
Right-of-use assets - operating leases	$ 7,825	$ 7,255

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Inventory (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished Homes and Homes under Construction	$ 646,153		$ 559,488
Land and lots - developed and under development	1,123,602		921,241
Land Available for Development	14,946		48,991
Inventory, Land Held-for-sale	7,355		3,503
Total inventory	$ 1,792,056		1,533,223
Document Period End Date	Jun. 30, 2024
Allowances for option deposits and pre-acquisition costs	$ 12	$ 47
Inventory [Line Items]
Finished Homes and Homes under Construction	646,153		559,488
Land and lots - developed and under development	1,123,602		921,241
Land Available for Development	14,946		48,991
Inventory, Land Held-for-sale	$ 7,355		$ 3,503

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Inventory (Capitalization of Interest) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Real Estate Inventory, Capitalized Interest Costs [Roll Forward]
Interest capitalized at beginning of period	$ 24,893	$ 22,847	$ 24,126	$ 22,752
Interest incurred	3,472	3,624	6,923	7,367
Interest charged to cost of revenues	(3,131)	(3,872)	(5,815)	(7,520)
Interest capitalized at end of period	$ 25,234	$ 22,599	$ 25,234	$ 22,599
Document Period End Date			Jun. 30, 2024
Capitalized interest as a percentage of inventory	1.40%	1.60%

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Payables and Accruals (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual, beginning of period	$ 25,116	$ 19,532	$ 23,474	$ 17,945
Warranties issued	3,373	2,876	6,126	4,921
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties	53	(82)	251	551
Payments made	(1,403)	(1,502)	(2,712)	(2,593)
Warranty accrual, end of period	27,139	20,824	27,139	20,824
Accrued liabilities [Line Items]
Standard Product Warranty Accrual	27,139	$ 20,824	27,139	$ 20,824	$ 23,474
Accrued expenses	126,144		126,144		96,457
Accrued Expenses
Accrued liabilities [Line Items]
Inventory, Real Estate, Land and Land Development Costs	30,698		30,698		26,063
Accrued Income Taxes	10,460		10,460		5,003
Accrued Bonuses	14,637		14,637		14,960
Other Accrued Liabilities	$ 25,216		$ 25,216		$ 26,957

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Investment in Unconsolidated Entities (Summary of Financial Information of Investment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Company’s share in net earnings of unconsolidated entities	$ 1,186	$ 5,699	$ 3,778	$ 9,920
Assets	2,064,402		2,064,402			$ 1,902,832
Liabilities	561,766		561,766			548,684
Stockholders' Equity Attributable to Parent	1,439,235	1,174,077	1,439,235	1,174,077	$ 1,383,327	1,300,704	$ 1,114,154	$ 1,061,907
Stockholders' Equity Attributable to Noncontrolling Interest	24,518	16,148	24,518	16,148	16,364	17,309	12,448	20,908
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,463,753	1,190,225	1,463,753	1,190,225	1,399,691	1,318,013	1,126,602	1,082,815
Liabilities and Equity	2,064,402		2,064,402			1,902,832
Total revenues	560,631	456,289	1,007,969	908,350
Net income	115,281	81,064	206,072	149,205
Schedule of Equity Method Investments [Line Items]
Equity in income of unconsolidated entities	1,186	5,699	3,778	9,920
Stockholders' Equity Attributable to Noncontrolling Interest	24,518	16,148	24,518	16,148	16,364	17,309	12,448	20,908
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,463,753	1,190,225	1,463,753	1,190,225	1,399,691	1,318,013	1,126,602	1,082,815
Total revenues	560,631	456,289	1,007,969	908,350
Net income	115,281	81,064	206,072	149,205
Assets	2,064,402		2,064,402			1,902,832
Liabilities	561,766		561,766			548,684
Stockholders' Equity Attributable to Parent	1,439,235	1,174,077	1,439,235	1,174,077	$ 1,383,327	1,300,704	$ 1,114,154	$ 1,061,907
Liabilities and Equity	2,064,402		2,064,402			1,902,832
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Income Statement [Abstract]
Company’s share in net earnings of unconsolidated entities	1,186	5,699	3,778	9,920
Schedule of Equity Method Investments [Line Items]
Equity in income of unconsolidated entities	1,186	5,699	3,778	9,920
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Income Statement [Abstract]
Assets	100,708		100,708			227,021
Liabilities	33,820		33,820			67,117
Stockholders' Equity Attributable to Parent	34,681		34,681			80,968
Stockholders' Equity Attributable to Noncontrolling Interest	32,207		32,207			78,936
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	66,888		66,888			159,904
Liabilities and Equity	100,708		100,708			227,021
Total revenues	8,078	74,747	37,817	133,070
Cash	6,099		6,099			23,549
Schedule of Equity Method Investments [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest	32,207		32,207			78,936
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	66,888		66,888			159,904
Total revenues	8,078	74,747	37,817	133,070
Accounts and Other Receivables, Net, Current	561		561			4,207
Financing Receivable, after Allowance for Credit Loss	19,363		19,363			2,838
Financing Receivable, Held-for-Sale	7,328		7,328			7,452
Inventory, Net	66,787		66,787			182,550
Other Assets, Current	570		570			6,425
Accounts Payable, Current	3,653		3,653			7,151
Accrued Liabilities, Current	2,594		2,594			10,265
Notes Payable, Current	27,573		27,573			49,701
Costs and Expenses	5,680	$ 63,420	30,187	$ 113,146
Assets	100,708		100,708			227,021
Cash	6,099		6,099			23,549
Liabilities	33,820		33,820			67,117
Stockholders' Equity Attributable to Parent	34,681		34,681			80,968
Liabilities and Equity	$ 100,708		$ 100,708			$ 227,021

XML

Investment in Unconsolidated Entities (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Investments in unconsolidated entities	$ 36,557		$ 36,557		$ 84,654
Equity in income of unconsolidated entities	$ 1,186	$ 5,699	$ 3,778	$ 9,920
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01		$ 0.01
Goodwill	$ 680		$ 680		$ 680

XML

Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	$ 36,557		$ 36,557		$ 84,654
Equity in income of unconsolidated entities	1,186	$ 5,699	3,778	$ 9,920
Total revenues	560,631	456,289	1,007,969	908,350
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Total revenues	8,078	74,747	37,817	133,070
Costs and Expenses	5,680	63,420	30,187	113,146
BHome Mortgage, LLC
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	1,047		1,047		1,255
Equity in income of unconsolidated entities	666	641	1,559	1,334
GB Challenger, LLC
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	0		0		52,666
Equity in income of unconsolidated entities	0	4,487		7,512
GBTM Sendera, LLC
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	20,804		20,804		19,866
EJB River Holdings, LLC
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated entities	12,156		12,156		$ 10,867
Equity in income of unconsolidated entities	520	571	1,290	1,074
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Schedule of Equity Method Investments [Line Items]
Equity in income of unconsolidated entities	$ 1,186	$ 5,699	$ 3,778	$ 9,920

XML

Debt (Schedule of Lines of Credit Outstanding) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 09, 2022	Jul. 30, 2015
Line of Credit Facility [Line Items]
Document Period End Date	Jun. 30, 2024
Debt Issuance Costs, Net	$ (1,921,000)		$ (2,328,000)
Debt Issuance Costs, Line of Credit Arrangements, Net	1,921,000		2,328,000
Letters of Credit Outstanding, Amount	5,200,000		13,500,000
Line of Credit Facility, Remaining Borrowing Capacity	35,000,000.0
Payments of Debt Issuance Costs	0	$ 72,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit	0		0
Line of Credit Facility, Maximum Borrowing Capacity				$ 300,000,000	$ 35,000,000.0
Unsecured Debt [Member]
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 0		$ 0

XML

Debt (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 29, 2029	Dec. 28, 2028	Aug. 08, 2026	Aug. 08, 2025	Aug. 08, 2024	Dec. 31, 2023	Dec. 09, 2022	Jul. 30, 2015
Debt Instrument [Line Items]
Document Period End Date	Jun. 30, 2024
Payments of Debt Issuance Costs	$ 0	$ 72,000
Costs associated with amendment	1,921,000							$ 2,328,000
Line of Credit Facility, Remaining Borrowing Capacity	35,000,000.0
Senior unsecured notes, net	311,398,000							336,207,000
Letters of Credit Outstanding, Amount	5,200,000							13,500,000
Notes payable	95,000							12,981,000
Debt Instrument, Interest Rate, Stated Percentage										3.15%
2026 Notes
Debt Instrument [Line Items]
Senior unsecured notes, net	75,000,000							75,000,000
2027 Notes
Debt Instrument [Line Items]
Senior unsecured notes, net	37,500,000							37,500,000
2028 Notes
Debt Instrument [Line Items]
Senior unsecured notes, net	100,000,000							125,000,000
2029 Notes
Debt Instrument [Line Items]
Senior unsecured notes, net	100,000,000							100,000,000
Senior Notes
Debt Instrument [Line Items]
Costs associated with amendment	1,102,000							1,293,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity									$ 300,000,000	$ 35,000,000.0
Borrowings on lines of credit	$ 0							$ 0
Forecast [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five			$ 70,000,000
Long-Term Debt, Maturity, Year Two						$ 12,500,000
Long-Term Debt, Maturity, Year One							$ 12,500,000
Long-Term Debt, Maturity, Year Three					$ 50,000,000.0
Long-Term Debt, Maturity, Year Five				$ 30

XML

Business Combination (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Assets acquired
Goodwill	$ 680		$ 680		$ 680
Liabilities assumed
Homebuilding revenues	560,631	$ 456,289	1,007,969	$ 908,350
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	139,177	104,212	254,810	191,384
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest	1,769	2,094	3,420	3,459
Temporary Equity, Accretion to Redemption Value			1,965	2,137
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount	38,883	32,995	38,883	32,995	$ 36,135	$ 38,186	$ 29,239	$ 30,291
Distributions to redeemable noncontrolling interest	(2,637)	(1,840)	(2,637)	$ (1,840)
Noncontrolling Interest, Change in Redemption Value	$ 1,565	$ (2,450)	$ 1,965
GHO Homes [Member]
Liabilities assumed
Ownership percentage by noncontrolling owners	20.00%		20.00%

XML

Equity (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Apr. 27, 2023
Share Repurchase Programs [Line Items]
Stock Repurchase Program, Authorized Amount				$ 100,000,000
Payments for Repurchase of Common Stock		$ 42,590,000	$ 27,991,000
Preferred Units [Line Items]
Dividends, Cash	$ 700,000	$ 1,400,000
Preferred Stock, Dividend Rate, Per-Dollar-Amount		$ 0.359
2022 Repurchase Plan
Share Repurchase Programs [Line Items]
Payments for Repurchase of Common Stock		$ 3,400,000
2023 Repurchase Plan
Share Repurchase Programs [Line Items]
Stock Repurchase Program, Remaining Authorized Repurchase Amount	61,300,000	61,300,000
Series A Preferred Stock
Preferred Units [Line Items]
Preferred Stock, Liquidation Preference, Value	25,000	25,000
Preferred Stock, Value, Issued	$ 50,000	$ 50,000
Preferred Stock, Dividend Rate, Percentage		5.75%

XML

Compensation Related Costs, Share Based Payments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 9,113,000		$ 11,276,000	$ 1,976,000
Document Period End Date			Jun. 30, 2024
Percentage of awards vested and forfeitable at time of grant			100.00%
Share-based compensation expense	$ 800,000	$ 500,000	$ 7,144,000	$ 5,966,000
Period for recognition			1 year 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	0		0		500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 0		$ 0		$ 7.49
Granted (in shares)			0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value			$ 23,160,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period			(500,000)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price			$ 7.49
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Forfeitures in Period			0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price			$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value					$ 22.225
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	0		0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 43.77		$ 43.77		$ 33.56
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	114,000		114,000		92,000
Granted (in dollars per share)			$ 51.75
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation				59,857
Share-based compensation expense	$ 800,000	$ 500,000	$ 7,144,000	$ 5,966,000
Compensation cost not yet recognized	3,200,000		$ 3,200,000
Period for recognition			1 year 10 months 24 days
Percentage of awards vested and forfeitable at time of grant			100.00%
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	9,113,000		$ 11,276,000	1,976,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			149,000
Vested (in dollars per share)			$ 46.69
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period			1,000
Forfeited (in dollars per share)			$ 36.44
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			172,000
Document Period End Date			Jun. 30, 2024
Common Stock [Member]
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 2,000		$ (2,000)	(1,000)
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	238,961		284,521
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 2,000		$ (2,000)	(1,000)
Additional Paid-in Capital [Member]
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	9,111,000		11,274,000	(1,975,000)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 9,111,000		$ 11,274,000	$ (1,975,000)

XML

Revenue Recognition (Narrative) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Jun. 30, 2024

Jun. 30, 2023

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30, 2024				Three Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	389,168	$	13,493	$	322,154	$	1,844
Southeast	157,970		—		132,291		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Type of Customer
Homebuyers	$	547,138	$	—	$	454,445	$	—
Homebuilders and Multi-family Developers	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Product Type
Residential units	$	547,138	$	—	$	454,445	$	—
Land and lots	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Timing of Revenue Recognition
Transferred at a point in time	$	546,948	$	13,493	$	454,136	$	1,844
Transferred over time(1)	190		—		309		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

	Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	704,405	$	17,547	$	666,618	$	3,543
Southeast	286,017		—		238,189		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Type of Customer
Homebuyers	$	990,422	$	—	$	904,807	$	—
Homebuilders and Multi-family Developers	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Product Type
Residential units	$	990,422	$	—	$	904,807	$	—
Land and lots	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Timing of Revenue Recognition
Transferred at a point in time	$	990,042	$	17,547	$	903,566	$	3,543
Transferred over time(1)	380		—		1,241		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

Opening and Closing Contract Balances Included in Customer and Builder Deposits on Balance Sheet and Deposits Recognized as Revenue

Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):

	June 30, 2024		December 31, 2023
Customer and builder deposits	$	49,316	$	43,148

The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three and six months ended June 30, 2024 and 2023 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Homebuyer deposits recognized as revenue	$	21,064	$	15,595	$	30,640	$	21,329

Revenue Recognition

REVENUE RECOGNITION

Disaggregation of Revenue

The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three and six months ended June 30, 2024 and 2023 (in thousands):

	Three Months Ended June 30, 2024				Three Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	389,168	$	13,493	$	322,154	$	1,844
Southeast	157,970		—		132,291		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Type of Customer
Homebuyers	$	547,138	$	—	$	454,445	$	—
Homebuilders and Multi-family Developers	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Product Type
Residential units	$	547,138	$	—	$	454,445	$	—
Land and lots	—		13,493		—		1,844
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844
Timing of Revenue Recognition
Transferred at a point in time	$	546,948	$	13,493	$	454,136	$	1,844
Transferred over time(1)	190		—		309		—
Total revenues	$	547,138	$	13,493	$	454,445	$	1,844

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

	Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
	Residential units revenue		Land and lots revenue		Residential units revenue		Land and lots revenue
Primary Geographical Market
Central	$	704,405	$	17,547	$	666,618	$	3,543
Southeast	286,017		—		238,189		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Type of Customer
Homebuyers	$	990,422	$	—	$	904,807	$	—
Homebuilders and Multi-family Developers	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Product Type
Residential units	$	990,422	$	—	$	904,807	$	—
Land and lots	—		17,547		—		3,543
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543
Timing of Revenue Recognition
Transferred at a point in time	$	990,042	$	17,547	$	903,566	$	3,543
Transferred over time(1)	380		—		1,241		—
Total revenues	$	990,422	$	17,547	$	904,807	$	3,543

(1)    Revenue recognized over time represents revenue from mechanic’s lien contracts.

Contract Balances

Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands):

	June 30, 2024		December 31, 2023
Customer and builder deposits	$	49,316	$	43,148

The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by terminations of contracts.

The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three and six months ended June 30, 2024 and 2023 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Homebuyer deposits recognized as revenue	$	21,064	$	15,595	$	30,640	$	21,329

Transaction Price Allocated to the Remaining Performance Obligations

The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $6.4 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel. The Company expects to recognize revenue of $5.8 million in the remainder of 2024 and $0.6 million in 2025.

The timing of lot takedowns is contingent upon a number of factors, including customer and business needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules.

Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.

Disaggregation of Revenue [Line Items]

Total revenues

$ 560,631

$ 456,289

$ 1,007,969

$ 908,350

Customer and builder deposits

49,316

49,316

$ 43,148

Residential Real Estate [Member]

Disaggregation of Revenue [Line Items]

Total revenues

547,138

454,445

990,422

904,807

Residential Real Estate [Member] | Transferred at a point in time

Disaggregation of Revenue [Line Items]

Total revenues

546,948

454,136

990,042

903,566

Residential Real Estate [Member] | Transferred over Time [Member]

Disaggregation of Revenue [Line Items]

Total revenues

190

309

380

1,241

Real Estate, Other [Member]

Disaggregation of Revenue [Line Items]

Total revenues

13,493

1,844

17,547

3,543

Real Estate, Other [Member] | Transferred at a point in time

Disaggregation of Revenue [Line Items]

Total revenues

13,493

1,844

17,547

3,543

Real Estate, Other [Member] | Transferred over Time [Member]

Disaggregation of Revenue [Line Items]

Total revenues

0

0

0

0

Homebuilders [Member] | Residential Real Estate [Member]

Disaggregation of Revenue [Line Items]

Total revenues

0

0

0

0

Homebuilders [Member] | Real Estate, Other [Member]

Disaggregation of Revenue [Line Items]

Total revenues

13,493

1,844

17,547

3,543

Homebuyers [Member] | Residential Real Estate [Member]

Disaggregation of Revenue [Line Items]

Total revenues

547,138

454,445

990,422

904,807

Revenue recognized

21,064

15,595

30,640

21,329

Homebuyers [Member] | Real Estate, Other [Member]

Disaggregation of Revenue [Line Items]

Total revenues

0

0

0

0

Central | Residential Real Estate [Member]

Disaggregation of Revenue [Line Items]

Total revenues

389,168

322,154

704,405

666,618

Central | Real Estate, Other [Member]

Disaggregation of Revenue [Line Items]

Total revenues

13,493

1,844

17,547

3,543

Southeast [Domain] | Residential Real Estate [Member]

Disaggregation of Revenue [Line Items]

Total revenues

157,970

132,291

286,017

238,189

Southeast [Domain] | Real Estate, Other [Member]

Disaggregation of Revenue [Line Items]

Total revenues

0

0

0

0

Land Subdivider and Developers

Disaggregation of Revenue [Line Items]

Total revenues

13,493

1,844

17,437

3,543

Land Subdivider and Developers | Residential Real Estate [Member]

Disaggregation of Revenue [Line Items]

Total revenues

0

0

0

0

Homebuilders [Member]

Disaggregation of Revenue [Line Items]

Total revenues

547,138

454,445

990,532

904,807

Homebuilders [Member] | Land and Lots [Member]

Disaggregation of Revenue [Line Items]

Total revenues

0

0

0

0

Homebuilders [Member] | Southeast [Domain]

Disaggregation of Revenue [Line Items]

Total revenues

$ 157,970

$ 132,291

$ 286,017

$ 238,189

XML

Revenue Recognition (Transaction Price Allocated to Remaining Performance Obligations) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, Practical Expedient, Remaining Performance Obligation, Description	Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period.
Remaining performance obligations	$ 6,400

XML

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenues:
Total revenues	$ 560,631	$ 456,289	$ 1,007,969	$ 908,350
Gross profit:
Gross Profit	189,666	142,935	337,923	267,541
Income before income taxes:
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	139,177	104,212	254,810	191,384
Inventory
Inventory	1,792,056		1,792,056		$ 1,533,223
Goodwill
Goodwill	680		680		680
Inventory	1,792,056		1,792,056		1,533,223
Corporate and Other [Member]
Gross profit:
Gross Profit	(11,074)	(11,669)	(20,879)	(23,485)
Income before income taxes:
Results of Operations, Income before Income Taxes	(8,585)	(4,222)	(3,740)	(8,113)
Goodwill
Inventory	47,787		47,787		43,438
Southeast [Domain]
Goodwill
Goodwill	680		680		680
Homebuilders [Member]
Revenues:
Total revenues	547,138	454,445	990,532	904,807
Gross profit:
Gross Profit	199,965	153,746	357,722	289,480
Income before income taxes:
Results of Operations, Income before Income Taxes	146,220	107,294	256,535	197,582
Goodwill
Inventory	1,010,995		1,010,995		960,074
Homebuilders [Member] | Southeast [Domain]
Revenues:
Total revenues	157,970	132,291	286,017	238,189
Gross profit:
Gross Profit	57,431	45,868	105,522	79,197
Income before income taxes:
Results of Operations, Income before Income Taxes	41,417	32,494	76,211	54,765
Goodwill
Inventory	333,065		333,065		314,087
Homebuilders [Member] | Central
Gross profit:
Gross Profit	142,534	107,878	252,200	210,283
Income before income taxes:
Results of Operations, Income before Income Taxes	104,803	74,800	180,324	142,817
Goodwill
Inventory	677,930		677,930		645,987
Homebuilders [Member] | Central America
Revenues:
Total revenues	389,168	322,154	704,515	666,618
Land Subdivider and Developers
Revenues:
Total revenues	13,493	1,844	17,437	3,543
Gross profit:
Gross Profit	775	858	1,080	1,546
Income before income taxes:
Results of Operations, Income before Income Taxes	1,542	1,140	2,015	1,915
Goodwill
Inventory	733,274		733,274		$ 529,711
Real Estate, Other [Member]
Revenues:
Total revenues	13,493	1,844	17,547	3,543
Real Estate, Other [Member] | Southeast [Domain]
Revenues:
Total revenues	0	0	0	0
Real Estate, Other [Member] | Central
Revenues:
Total revenues	13,493	1,844	17,547	3,543
Residential Real Estate [Member]
Revenues:
Total revenues	547,138	454,445	990,422	904,807
Residential Real Estate [Member] | Southeast [Domain]
Revenues:
Total revenues	157,970	132,291	286,017	238,189
Residential Real Estate [Member] | Central
Revenues:
Total revenues	389,168	322,154	704,405	666,618
Residential Real Estate [Member] | Land Subdivider and Developers
Revenues:
Total revenues	0	0	0	0
Land and Lots [Member] | Homebuilders [Member]
Revenues:
Total revenues	$ 0	$ 0	$ 0	$ 0

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 23,896	$ 23,148	$ 48,738	$ 42,179
Effective tax rate	17.20%	22.20%	19.10%	22.00%

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Net Income Attributable to Green Brick Partners, Inc. Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income attributable to Green Brick Partners, Inc.	$ 105,358	$ 75,270	$ 188,659	$ 139,450
Preferred Stock Dividends, Income Statement Impact	719	719	1,438	1,438
Net Income (Loss) Available to Common Stockholders, Basic	$ 104,639	$ 74,551	$ 187,221	$ 138,012
Weighted-average number of shares outstanding —basic (in shares)	44,760	45,371	44,826	45,656
Basic net income attributable to Green Brick Partners, Inc. per share (in dollars per share)	$ 2.34	$ 1.64	$ 4.18	$ 3.02
Dilutive effect of stock options and restricted stock awards (in shares)	394	384	451	395
Weighted-average number of shares outstanding —diluted (in shares)	45,154	45,755	45,277	46,051
Diluted net income attributable to Green Brick Partners, Inc. per share (in dollars per share)	$ 2.32	$ 1.63	$ 4.14	$ 3.00

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Net Income Attributable to Green Brick Partners, Inc. Per Share (Antidilutive Options Excluded From Calculation of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Antidilutive options to purchase common stock and restricted stock awards (in shares)	0	(4)	0	(55)

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Fair Value Measurements (Schedule of Carrying Value and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Debt Instrument, Fair Value Disclosure	$ 294,700	$ 322,500
Senior unsecured notes, net	$ 311,398	$ 336,207

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Related Party Disclosures (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Centre Living
Related Party Transactions [Abstract]
Ownership percentage by noncontrolling owners	10.00%
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners	10.00%
Ownership percentage by parent	90.00%
Office Space Lease Agreements
Related Party Transaction [Line Items]
Other Liabilities	$ 0
GHO Homes [Member]
Related Party Transaction [Line Items]
Operating Costs and Expenses	100,000
GHO Homes [Member]
Related Party Transaction [Line Items]
Other Liabilities	$ 0

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Commitments and Contingencies (Schedule of Annual Minimum Operating Lease Payments) (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Lease liabilities - operating leases	$ 8,756	$ 7,898
Remainder of 2024	721
Operating Leases, Future Minimum Payments, Due in Two Years	1,748
Lessee, Operating Lease, Liability, Payments, Due Year Three	1,722
2021	1,689
Total future lease payments	11,127
Lessee, Operating Lease, Liability, to be Paid, Year One	1,827
Lessee, Operating Lease, Liability, to be Paid, after Year Five	3,420
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	$ 2,371

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Commitments and Contingencies Operating Leases Disclosures - ASC 842 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Allowances for option deposits and pre-acquisition costs			$ 12	$ 47
Short-term Lease, Cost	$ 200		400
Operating Lease, Expense	400		800
Operating Lease, Payments	$ 200	$ 400	$ 300	$ 900
Operating Lease, Weighted Average Remaining Lease Term	6 years 3 months 18 days		6 years 3 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent	7.40%		7.40%