Investor Presentation March 2026 Forward -Looking Statements This investor presentation includes forward -looking statements regarding future events which include, but are not limited to, projected 2026 home closings and market conditions, possible or assumed future results of operations, benefits of recent acquisitions and statements regarding the Company's strategies and expectations as they relate to market opportunities and growth. All forward -looking statements are based on Dream Finders Homes' belief ...

Core Insights - Dream Finders Homes Inc (NYSE:DFH) is recognized as one of the top homebuilder stocks to consider by hedge funds [1][7] - The company reported a Q4 2025 EPS of $0.58, down from $1.29 in Q4 2024, and missed the consensus estimate of $0.64 [1] - Revenue for Q4 2025 was $1.21 billion, a decline from $1.56 billion a year ago, but exceeded the consensus projection of $1.1 billion [1] Financial Performance - In Q4 2025, Dream Finders Homes experienced a decrease in home closings and gross margin, indicating a challenging operational environment [2] - Despite the quarterly challenges, the company achieved a record annual closing of 8,608 homes for the full year [2] - The company anticipates approximately 9,250 home closings in 2026, reflecting its commitment to affordable housing [2] Management Commentary - CEO Patrick Zalupski highlighted the ongoing difficulties in the housing sector but emphasized the strength and resilience of the business and team [3] Liquidity and Share Repurchase - At the end of 2025, Dream Finders Homes had total liquidity of $899 million, which included $234.8 million in cash and cash equivalents [4] - The company repurchased $41.8 million worth of its own shares during 2025, with an existing share repurchase plan authorized for $100 million until June 2027 [4] Company Overview - Dream Finders Homes is headquartered in Jacksonville, Florida, focusing on building single-family homes primarily in the Southeast US, including the Washington, D.C. metropolitan area [5]

Fund Performance - Bretton Fund returned 1.44% in Q4 2025, underperforming the S&P 500 Index which returned 2.66% [1] - For the full year 2025, the Fund achieved a return of 11.58%, compared to 17.88% for the S&P 500 Index [1] Market Outlook - The firm does not view the overall market as being in bubble territory but considers it to be modestly elevated [1] - The Fund is willing to reduce speculative elements of the AI boom, even if it results in temporary underperformance during strong market phases [1] Company Focus - The Fund highlighted Dream Finders Homes, Inc. (NYSE:DFH) as a key stock, which focuses on designing and selling single-family homes and custom homes [2] - As of March 04, 2026, Dream Finders Homes, Inc. had a stock price of $17.57, with a one-month return of -7.53% and a 52-week loss of 29.52% [2] - Dream Finders Homes, Inc. has a market capitalization of $1.63 billion [2] Housing Market Analysis - Initially, home builders like Dream Finders Homes, Inc. performed well despite rising interest rates in 2022 due to reduced competition from existing homeowners [3] - However, sustained high interest rates and expectations for lower rates led to a weak housing market, with existing home sales at one of the lowest percentages on record [3]

Core Viewpoint - Purcell & Lefkowitz LLP is investigating Dream Finders Homes, Inc. to determine if the company's directors breached their fiduciary duties related to recent corporate actions [1] Group 1 - The investigation is being conducted on behalf of the shareholders of Dream Finders Homes, Inc. [1] - Shareholders interested in more information about their rights and options are encouraged to visit the law firm's website or contact them directly [1] - Purcell & Lefkowitz LLP specializes in representing shareholders who are victims of securities fraud and breaches of fiduciary duty [1]

Market Reaction - Stocks related to the US housing market experienced significant declines, with the S&P composite homebuilder index dropping as much as 5.2%, marking the largest decrease since April's tariff-related market turmoil [2] - Major companies affected included Green Brick Partners Inc., Lennar Corp., and Lowe's Cos Inc., with Lowe's shares falling by as much as 5.4% [2][3] Company Performance - Lowe's forecasted full-year sales that did not meet expectations, indicating a continued lackluster housing market [3] - Home Depot also expressed caution regarding macroeconomic challenges, contributing to the negative sentiment in the sector [3] Policy Expectations - Investors were anticipating new housing market policies from President Trump's State of the Union address, but he only briefly mentioned a potential ban on institutional investors purchasing single-family homes [4] - Analysts noted that the address did not provide the expected support for the housing market, instead reflecting on the drop in interest rates and reiterating the proposal to limit institutional home ownership [5] Economic Context - Trump suggested that lower interest rates would address housing affordability issues, while also emphasizing the protection of current homeowners' property values [6] - Concerns about housing affordability and job losses were highlighted by Home Depot's CFO, indicating growing uncertainty among homeowners [6] - Lowe's CEO pointed out subdued consumer confidence due to inflationary pressures and high mortgage rates, which are contributing to a "persistent lock-in effect" and slow new home building [6]

Company Growth and Operations - The company closed over 46,500 homes since its inception through the end of 2025, demonstrating significant growth from closing 27 homes in its inaugural year in 2009[76] - The company ranks among the top 14 homebuilders in the U.S. based on homebuilding revenues and closings, as reported in the 2025 Builder 100 List[60] - The company has experienced seasonal variability in operations, generally selling more homes in the first and second quarters and closing more homes in the third and fourth quarters[64] - The company employs 1,911 full-time employees as of December 31, 2025, with a focus on recruiting and retaining exceptional talent[69] - The company has strategic alliances with the Jacksonville Jaguars and the PGA TOUR, enhancing its national marketing footprint[53] - The company emphasizes energy-efficient home features, including solar panels and energy-efficient appliances, targeting first-time homebuyers and low-income residents[77] - The company has expanded its title operations and is considering further expansion based on unit volume and average sales price for homes sold[58] - The company was named National Builder of the Year by Builder Magazine in 2025, highlighting its competitive position in the market[60] Financial Services and Risk Management - The financial services segment includes a wholly owned mortgage banking subsidiary, Jet HomeLoans, which offers conforming and non-conforming mortgage financing[57] - The company has a title insurance agency, DF Title, operating in multiple states, providing closing, escrow, and title insurance services[58] - The company is sensitive to interest rate fluctuations, which can adversely affect homebuyer financing and overall housing demand[330] - A significant increase in interest rates may negatively impact the company's revenues, gross margins, and net income[330] - Jet HomeLoans, the company's mortgage banking business, is exposed to interest rate risk and employs interest rate lock commitments to manage this risk[335] - The company utilizes Term SOFR Rate Loans and Daily Simple SOFR Rate Loans, with interest rates adjusted by 10 basis points and credit spreads ranging from 2.00% to 2.95%[332] - The company pays a commitment fee on unused commitments, which varies from 0.20% to 0.30% based on the net debt to capitalization ratio[333] - The company enters into forward sales of mortgage-backed securities to hedge against mortgage-related interest rate exposure[335] - The borrowing base availability is reduced dollar-for-dollar for any outstanding unsecured indebtedness permitted under the Credit Agreement[334] - The company has no market rate-sensitive instruments held for speculative or trading purposes[331] - Lower interest rates tend to increase demand for mortgage loans, while higher rates make it more difficult for potential borrowers to qualify[331]

Homebuilding Performance - Homebuilding revenues for Q4 2025 were $1.2 billion, a decrease of 24% compared to Q4 2024[10] - Home closings in Q4 2025 totaled 2,536, down from 3,008 in Q4 2024[5] - Full year 2025 net sales were 7,747, up 15% from 6,727 in 2024[5] - Homebuilding revenues for the year ended December 31, 2025, were $4,145,347, reflecting a 6.1% increase from $4,397,877 in 2024[26] - The average sales price of homes closed in Q4 2025 was $460,442, down 9.2% from $507,477 in Q4 2024[28] - The number of home closings in Q4 2025 was 2,536, a decrease from 3,008 in Q4 2024[28] Financial Performance - The company reported a net income of $59 million, or $0.60 per basic share, down from $129 million, or $1.35 per basic share in Q4 2024[14] - Total revenues for the three months ended December 31, 2025, were $1,212,668, a decrease of 22.2% compared to $1,559,880 for the same period in 2024[26] - Earnings per share for Q4 2025 were $0.60, a decrease from $1.35 in Q4 2024[26] Backlog and Pipeline - The backlog as of December 31, 2025, included 1,839 homes valued at $0.8 billion, compared to 2,619 homes valued at $1.2 billion as of September 30, 2025[16] - The backlog as of December 31, 2025, was 1,839 units, with a total backlog value of $821,292, down from 2,599 units and $1,304,463 in 2024[28] - The controlled lot pipeline grew to 63,121 as of December 31, 2025, compared to 54,698 a year earlier[5] - The company expects approximately 9,250 home closings for the full year 2026[20] Gross Margin and Debt - Homebuilding gross margin for Q4 2025 was $192,976, representing a gross margin percentage of 16.7%, down from 17.7% in Q4 2024[28] - Adjusted homebuilding gross margin for Q4 2025 was $298,361, with an adjusted gross margin percentage of 25.7%, compared to 26.9% in Q4 2024[33] - Net homebuilding debt to net capitalization increased to 41.8% in 2025 from 33.7% in 2024[37] Cancellation and Financial Services - The cancellation rate for Q4 2025 was 15.9%, a decrease from 18.8% in Q4 2024[28] - Financial services revenues increased by 109% to $28 million in Q4 2025, primarily due to the acquisition of Alliant Title[18] - The company repurchased 1,832,865 Class A common shares for $41.8 million during the year ended December 31, 2025[5]

Core Viewpoint - The law firm Kahn Swick & Foti, LLC has initiated an investigation into Dream Finders Homes, Inc. regarding potential breaches of fiduciary duties by its officers and directors [1] Group 1 - The investigation focuses on whether Dream Finders' controlling stockholder and management violated state or federal laws [1] - Shareholders of Dream Finders Homes, Inc. are encouraged to contact KSF to discuss their legal rights without any obligation or cost [1]

Company Overview - Dream Finders Homes is a large-scale homebuilder that also provides insurance agency services and mortgage banking solutions across the U.S., focusing on single-family homes for first- and second-time home buyers [5] - The company reported a total revenue of $4.67 billion and a net income of $274.23 million for the trailing twelve months (TTM) [4] Recent Transactions - On January 21 and 22, 2026, 10% Owner William Radford Lovett II sold 71,742 shares of Dream Finders Homes, valued at approximately $1.4 million [1][2] - Post-transaction, Lovett holds 22,349 shares directly, valued at $432,453 based on the market close on January 22, 2026 [2] Financial Performance - Dream Finders Homes is projected to have one of its worst years in terms of profitability for fiscal year 2025, with a decline in earnings per share (EPS) for three consecutive quarters, marking the first such occurrence since FY 2021 [6] - The company's net income fell to $47 million in Q3 2025, the lowest since Q1 2022 [6] - The stock price has decreased approximately 27% in 2025, reflecting ongoing struggles in the homebuilding market [7] Market Challenges - The homebuilding industry is facing significant challenges, including limited inventory, constrained demand, worker shortages, and rising material costs [7] Management Concerns - CEO and Founder Patrick Zalupski's recent acquisition of the Tampa Bay Rays, where he is now a majority owner, raises concerns about his focus on Dream Finders Homes, although he has stated he remains committed to the company [9] - The recent sale of shares by Lovett exceeds his historical median sell transaction of 50,076 shares since December 2024, indicating a notable shift in trading activity [8]

Core Insights - The Tampa Bay Rays are exploring options for a new stadium to replace the aging Tropicana Field, which has been a challenge due to its location and low attendance [1][3][9] - Recent developments include a nonbinding agreement with Hillsborough College to build a multiuse facility on a 113-acre site, with plans for a roof to mitigate weather issues [4][5][10] - The new ownership group, led by Patrick Zalupski, aims to create a vibrant community space similar to Truist Park, but details on financial contributions and city support remain unclear [11][15] Group 1: Stadium Development - The Rays have been in discussions for a new stadium for years, with previous proposals failing due to various reasons, including Hurricane Milton's impact [3][6] - The team is currently negotiating with Tampa officials, with a six-month window for discussions as part of the agreement with Hillsborough College [5][11] - The proposed stadium's design and financial structure are still under wraps, with no public information on the ownership's financial commitments [10][11] Group 2: Attendance and Performance - The Rays have struggled with attendance, ranking 29th in MLB in 2025, with only 786,750 fans compared to 1,337,739 in 2024 [9] - The team played the entire 2025 season at Steinbrenner Field due to damage from Hurricane Milton, which affected their home games and attendance figures [6][9] Group 3: Ownership Changes - The Rays were sold to a new ownership group led by Patrick Zalupski, with an estimated net worth of $1.4 billion, and Ken Babby appointed as the new CEO [15][16] - The new ownership aims to revitalize the team's presence and community engagement in Tampa Bay [12][15]