Core Viewpoint - PulteGroup has nominated Benjamin Schall for election as a new independent director to its Board of Directors, with the election scheduled for April 29, 2026 [1]. Group 1: Nomination Details - Benjamin Schall is currently the CEO and President of AvalonBay Communities Inc., a leading multifamily real estate investment trust (REIT) [1]. - If elected, Mr. Schall's appointment will be effective immediately [1]. Group 2: Executive Experience - Mr. Schall brings over 20 years of senior executive experience in leading large, diversified real estate platforms and managing nationwide operating portfolios [2]. - His previous roles include CEO and President of Seritage Growth Properties and Chief Operating Officer of Rouse Properties, overseeing a significant portfolio of regional malls across 21 states [2]. Group 3: Educational Background and Industry Involvement - Mr. Schall is a graduate of Swarthmore College and holds an MBA from Harvard Business School [3]. - He is actively involved in national real estate organizations, including Nareit, NMHC, and The Real Estate Roundtable, and serves as Co-Chair of the Board of University Settlement in New York [3]. Group 4: Company Overview - PulteGroup, Inc. is one of America's largest homebuilding companies, operating in over 45 markets across the country [3]. - The company has a diverse brand portfolio, including Pulte Homes, Centex, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, catering to various buyer groups [3].

Core Viewpoint - PulteGroup, Inc. (PHM) is a significant player in the homebuilding industry, with a market cap of $23.7 billion, and is experiencing mixed performance amid varying regional demand and market conditions [1][2]. Company Overview - PulteGroup engages in homebuilding, land development, and offers mortgage financing and title insurance services [1]. - The company is classified as a large-cap stock due to its market capitalization exceeding $10 billion, reflecting its substantial influence in the residential construction sector [2]. Stock Performance - PHM's stock has decreased by 16.6% from its 52-week high of $144.50, reached on February 17, and has seen a 4.7% decline over the past three months, although it outperformed the Consumer Discretionary Select Sector SPDR Fund (XLY) which dipped by 7.6% [3]. - Year-to-date, PHM shares have risen by 2.7% and increased by 16.4% over the past 52 weeks, outperforming XLY's year-to-date losses of 6.6% [4]. Market Dynamics - PulteGroup's performance is bolstered by strong demand in the Midwest, Northeast, and Florida, while facing challenges in Texas and Western markets [5]. - The company has seen increased sign-ups in its Del Webb communities, which are generating the highest gross margins [5]. Strategic Adjustments - To address softer demand, PulteGroup has increased sales incentives and is shifting towards built-to-order homes [5]. - Management expresses optimism for the spring 2026 selling season, citing improved affordability and lower mortgage rates as positive factors [5]. Financial Results - In Q4, PHM reported an adjusted EPS of $2.88, surpassing Wall Street expectations of $2.78, with revenue of $4.6 billion exceeding forecasts of $4.3 billion [6]. - Competitor D.R. Horton, Inc. (DHI) has underperformed compared to PHM, with a 3.5% decline year-to-date and 8.1% gains over the past 52 weeks [6].

Core Insights - PulteGroup Inc (NYSE:PHM) is recognized as one of the top homebuilder stocks favored by hedge funds [1] - The company outlined its strategic priorities at the 47th Annual Raymond James Institutional Investor Conference [1] Strategic Focus - CFO Jim Ossowski emphasized disciplined land management and efficient cash allocation during the conference [2] - PulteGroup's approach includes strategic segmentation to maximize returns on equity while maintaining a strong balance sheet [3] Market Position - PulteGroup is performing well in key markets such as Florida, while facing challenges in California and Texas [3] - The company operates in over 45 markets across the U.S. and has a diverse portfolio of brands including Pulte Homes and Centex [5] Financial Developments - On February 20, PulteGroup completed an offering of $800 million in senior unsecured notes, split into two series: $400 million at 4.25% interest maturing in 2031 and $400 million at 4.9% due in 2036 [4]

Core Insights - St. Joe Company has established a new builder relationship with PulteGroup, Inc., a leading national home builder, to develop homesites in Northwest Florida [1][2] - The contract includes 1,326 homesites with the potential for up to 2,653 homes, with development expected to begin in 2027 [3] - This partnership reflects the growing demand for housing in the State Road 79 corridor, which is experiencing significant investment across various sectors [4] Company Overview - St. Joe Company is a diversified real estate development and asset management firm with a focus on residential, hospitality, and commercial ventures in Northwest Florida [6] - PulteGroup, Inc. is one of the largest homebuilding companies in the U.S., operating in over 45 markets and offering a variety of home designs to meet diverse consumer needs [8]

Core Viewpoint - PulteGroup is recognized as the third largest homebuilder in the U.S. and is noted for its strong profitability metrics and consistent performance, which have been maintained even during the current housing down cycle [1]. Group 1: Company Performance - PulteGroup has demonstrated best-in-class margins within the homebuilding industry, indicating a strong competitive position [1]. - The company has a track record of consistent returns of capital to shareholders, highlighting its commitment to shareholder value [1]. Group 2: Market Outlook - There is potential for significant improvement in profitability for PulteGroup if there is relief on mortgage rates and favorable demographic trends in housing [1].

Summary of PulteGroup Conference Call Company Overview - **Company**: PulteGroup - **Industry**: Home Building - **Position**: Third-largest home builder in the U.S. with best-in-class profitability metrics and consistent returns to shareholders [1][3] Core Points and Arguments Profitability and Market Conditions - Profitability is expected to improve with potential relief on mortgage rates and favorable demographic trends in housing [2] - PulteGroup focuses on generating high through-cycle returns, emphasizing returns over top-line growth since 2011 [3][4] Value Creation Initiatives - PulteGroup's strategy includes a disciplined land underwriting process, targeted segmentation strategy, and effective cash generation and allocation [5][6][7] - The company has a healthy pipeline with approximately 235,000 lots controlled, with nearly 60% under option [9][10] Geographic and Consumer Segmentation - PulteGroup operates in over 1,000 communities across 47 housing markets, emphasizing geographic diversification to mitigate market fluctuations [14][15] - The company targets three buyer segments: first-time buyers (38% of business), move-up buyers (40%), and active adults (over 20%) [16][17][19] Financial Health and Cash Flow - PulteGroup maintains a strong balance sheet with low leverage and investment-grade ratings, focusing on reinvesting in the business and returning capital to shareholders through dividends and share repurchases [21][22] Market Dynamics and Mortgage Rates - The company is less aggressive with mortgage rate buydowns compared to competitors, as over 60% of their business comes from financially stable move-up and active adult consumers [27][28] - A favorable mortgage rate environment is expected to increase foot traffic and demand [27] Land Market Insights - Land sellers are becoming more open to negotiations, especially in B and C ring locations, while A+ locations remain stable [41][42] - PulteGroup aims to increase land options to 70%, currently at about 50%, while supplementing with land banking for risk mitigation [46][48] Cost of Raw Materials and Labor - Costs per square foot have remained flat at approximately $79, with expectations for slight decreases in 2026 due to improved procurement strategies [61] - Labor availability has improved as production rates slowed, but the situation can change rapidly with market demand [62] Inventory and Market Conditions - Resale inventory is in a good position, with consumers reluctant to move due to low mortgage rates on existing homes [67] - New home supply is nearing equilibrium, with PulteGroup aiming to reduce excess inventory by 500 units [68] Offsite Manufacturing Strategy - PulteGroup has shifted its strategy regarding offsite manufacturing, opting to leverage technology and innovation as a buyer rather than owning manufacturing facilities [74][75] Additional Important Insights - The company is optimistic about long-term housing discussions, particularly regarding potential deregulation and zoning changes that could facilitate affordable housing development [57][58] - The active adult segment has shown resilience, with many consumers in this category paying cash and being less affected by market fluctuations [19][39]

Raymond James March 2026 2026 INVESTOR PRESENTATION 1 INVESTOR PRESENTATION Forward-looking Statements This presentation includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that ...

Group 1: Fund Performance - The Harbor Mid Cap Value Fund outperformed the Russell Midcap Value Index in Q4 2025, returning 4.07% compared to the index's 1.42% [1] - For the full year 2025, the Fund gained 15.95%, outperforming the benchmark's return of 11.05% [1] - The Fund's total quarterly excess return was 2.82%, primarily driven by selection effects, emphasizing a quantitative value discipline [1] Group 2: Market Context - U.S. equities generally advanced in Q4 2025, with the S&P 500 Index rising 2.7% for the quarter and 17.9% for the year, while mid-caps lagged with only a 0.2% increase in the Russell Midcap Index [1] - AI-driven large-cap leadership has led to elevated valuations in certain segments, while mid- and small-cap value stocks are trading at more attractive multiples [1] Group 3: PulteGroup, Inc. (NYSE:PHM) - PulteGroup, Inc. had a one-month return of 8.45%, with shares trading between $88.07 and $144.50 over the last 52 weeks, and a market capitalization of approximately $26.091 billion [2] - Despite being a holding in the Fund, PulteGroup struggled due to slowing orders and margin pressures, even with a slight decrease in mortgage rates [3] - PulteGroup was held by 45 hedge fund portfolios at the end of Q4 2025, an increase from 42 in the previous quarter [4]

Group 1: Mortgage Rates and Housing Market - The average 30-year mortgage rate in the U.S. has fallen below 6% for the first time in three and a half years, currently at 5.98%, down from 6.01% last week and significantly lower than 6.76% a year ago [1][4] - Economists suggest that the drop in mortgage rates may be temporary and that an increase in housing supply is necessary to significantly boost housing demand [1][4] - The shortage of available homes, particularly for first-time buyers, continues to challenge the housing market, with inventory levels for existing homes remaining below pre-pandemic levels [4] Group 2: Economic and Political Context - The U.S. housing market has become a sensitive political issue, with President Trump facing pressure to address living costs ahead of the November midterm elections [4] - Trump has proposed measures to improve housing affordability, including directing the Federal Housing Finance Agency to purchase $200 billion in mortgage-backed securities [4] - Economists express skepticism about whether these mortgage purchases will significantly improve housing affordability [4] Group 3: Market Reactions and Company Performance - The decline in mortgage rates has led to an increase in refinancing activity, with some banks reporting a nearly 22% year-over-year increase in mortgage applications [5] - However, home improvement retailer Lowe's comments about ongoing pressures from interest rates and economic uncertainty have negatively impacted the stock prices of housing-related companies, with Lowe's stock dropping 5.6% [6] - Other companies in the housing sector, such as Lennar and D.R. Horton, also experienced significant stock declines, reflecting broader concerns about consumer confidence and housing turnover rates [6]

Group 1 - Lowe's reported that interest rates and other pressures continue to weigh on home sales, leading to significant declines in stock prices for homebuilders and related companies [1] - Lowe's stock fell by 5.6%, while other companies like Lennar, PulteGroup, D.R. Horton, and Builders FirstSource saw declines of 4.9%, 4.7%, 4.0%, and 6.4% respectively [1] - The S&P 1500 Homebuilding Index dropped by 3.7%, reaching a three-week low, and the Philadelphia Housing Sector Index fell by 3% [1] Group 2 - The average rate for a 30-year fixed mortgage in the U.S. decreased by 8 basis points to 6.09%, but mortgage application demand fell by 4.7% [2] - The U.S. housing market is struggling due to limited supply, high interest rates, and rising construction costs, with January existing home sales hitting a two-year low [2] - Comments from President Trump regarding limiting large companies' ownership of homes may have been expected to benefit homebuilders, yet stock prices declined, reflecting a "distorted situation" in the real estate market [2]