FOURTH QUARTER 2025 ANALYST CONFERENCE CALL JANUARY 29, 2026 Safe Harbor The information included in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general and our future results including our ability to increase market share, our full year 2026 projected share repurchases, home closing volume and home closing revenue, and first quarter 2026 projected home closi ...

Financial Data and Key Metrics Changes - In 2025, PulteGroup closed over 29,500 homes and generated home sale revenues of $16.7 billion, with full-year gross and operating margins reported at 26.3% and 16.9% respectively [7][22] - The company reported net income of $2.2 billion for the full year, translating to $11.12 per share, while Q4 net income was $502 million or $2.56 per share, down from $913 million or $4.43 per share in Q4 2024 [22][23] - Cash flow from operations for 2025 was $1.9 billion, and the company ended the year with $2 billion in cash [7][11] Business Line Data and Key Metrics Changes - In Q4 2025, net new orders increased by 4% year-over-year to 6,428 homes, with a 6% increase in average community count [12][14] - The absorption pace for the full year was 2.3 homes per month, down from 2.6 homes per month in 2024, with a cancellation rate of 12% compared to 10% in the prior year [13][14] - Closings in Q4 were 7,821 homes, down 3% year-over-year, with a decrease in average sales price to $573,000 [15][16] Market Data and Key Metrics Changes - PulteGroup's operations are established in 47 distinct markets, with relative strength in the Midwest, Northeast, and Florida, while Texas and many western markets experienced softer demand [7][8] - Active adult buyer signups increased by 6% year-over-year, with a 14% increase in Q4 compared to the same quarter in the previous year [8][14] - The company reported a year-end backlog of 8,495 homes valued at $5.3 billion [15] Company Strategy and Development Direction - PulteGroup has made a strategic decision to divest its off-site manufacturing operations to focus on core homebuilding activities, believing this will better serve shareholders [10] - The company aims to achieve community count growth of 3%-5% in 2026, supported by a land pipeline of 235,000 lots [9][11] - The operating model emphasizes diversification and balance across markets and buyer groups, which has helped navigate variable market dynamics [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing improved affordability due to lower mortgage rates and increased consumer income [30] - The company noted that consumer confidence will be critical in determining buyer demand in the coming months [31] - Despite a challenging year in 2025, management highlighted strong financial results and a disciplined approach to capital allocation [9][11] Other Important Information - PulteGroup repurchased 10.6 million common shares in 2025 for $1.2 billion, with $983 million remaining under the existing share repurchase authorization [22][23] - The company expects SG&A expenses to be in the range of 9.5%-9.7% of home sale revenue for 2026 [19] Q&A Session Summary Question: Can you discuss the management of SG&A expenses despite lower home sales? - Management indicated that they maintained a balanced approach, making targeted reductions in certain markets while investing in quality and customer experience [34][36] Question: What is the outlook for gross margins in 2026? - Management expects gross margins to be in the range of 24.5%-25.0% for both Q1 and the full year, with land costs anticipated to increase by 7%-8% [18][46] Question: Can you elaborate on the trends in major markets regarding inventory? - Management noted positive trends in Florida, with strong sales, while other markets like Texas are experiencing sluggish demand [50][51] Question: What are the implications of the administration's restrictions on institutional ownership of single-family homes? - Management does not foresee significant impacts on their operations and is committed to adhering to any new regulations [100][103]

FOURTH QUARTER 2025 EARNINGS CALL January 29, 2026 1 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 they do not relate to m ...

Core Viewpoint - PulteGroup reported a decline in fourth-quarter profit due to ongoing weak consumer sentiment negatively impacting home sales [1] Company Summary - PulteGroup's fourth-quarter profit decreased as a result of challenging market conditions [1] - The company is facing difficulties in home sales attributed to low consumer confidence [1] Industry Summary - The housing market is experiencing a downturn, influenced by weak consumer sentiment [1] - Overall home sales are being adversely affected, indicating broader challenges within the real estate sector [1]

Core Viewpoint - PulteGroup, Inc. reported a decline in net income for the fourth quarter of 2025, reflecting challenges in the housing market despite a disciplined business approach and significant investments in land acquisition and development [2][3]. Financial Performance - The company reported net income of $502 million, or $2.56 per share, for Q4 2025, down from $913 million, or $4.43 per share, in the same period last year [1][2]. - Home sale revenues for Q4 2025 were $4.5 billion, a decrease of 5% compared to the prior year, driven by a 3% decline in closings to 7,821 homes and a 1% decrease in average sales price to $573,000 [3][4]. - For the full year 2025, PulteGroup delivered 29,572 homes and generated $16.7 billion in home sale revenues, with a net income of $2.2 billion [2]. Cost and Expenses - The reported gross margin for home sales in Q4 2025 was 24.7%, down from 27.5% in the prior year, which included land impairment charges of $35 million [4]. - Selling, general, and administrative (SG&A) expenses for Q4 2025 were $389 million, or 8.7% of home sale revenues, compared to $196 million, or 4.2% of revenues in Q4 2024 [5]. Orders and Backlog - Net new orders for Q4 2025 increased by 4% to 6,428 homes, with a total value of $3.5 billion, remaining comparable to the previous year [6]. - The company's backlog at the end of Q4 2025 totaled 8,495 homes, valued at $5.3 billion [6]. Financial Services - The financial services segment generated pre-tax income of $35 million in Q4 2025, down from $51 million in the same period last year, impacted by lower closing volumes and a decrease in mortgage capture rate to 84% [7]. Shareholder Actions - In Q4 2025, PulteGroup repurchased 2.4 million common shares for $300 million, totaling 10.6 million shares repurchased for the year at a cost of $1.2 billion [8]. Cash Position - The company ended Q4 2025 with $2.0 billion in cash and a debt-to-capital ratio of 11.2% [8].

Performance Overview - The Third Avenue Real Estate Value Fund generated a return of +11.61% for the year ended December 31, 2025, outperforming its benchmark, the MSCI ACWI IMI Core Real Estate Index, which returned +9.86% [2][3] - Since its inception in 1998, the Fund has achieved an annualized return of +8.96%, indicating that an initial investment of $100,000 would exceed $1,000,000 by year-end with reinvested distributions [4] Key Contributors and Detractors - Major contributors to the Fund's performance included investments in National Storage REIT and several industrial and logistics REITs such as Prologis, First Industrial, and Segro plc [3] - Detractors included investments in U.S. homebuilders like Lennar Corp., PulteGroup, and D.R. Horton, as well as certain U.K. property companies [3] Fund Management Strategy - The Fund Management emphasizes long-term results and has refined its investment strategy to focus on well-capitalized enterprises with discounted securities [8][9] - The Firm's approach to value investing has remained consistent, targeting opportunities for resource conversion, including privatizations and mergers [10][11] Recent Additions and Changes - The Fund initiated a position in FirstService Corporation, a Canadian real estate services company, which meets the Fund's investment criteria due to its conservative capitalization and strong management [12][13] - Other changes included adding to positions where the price-to-value gap widened, such as Unite Group and Fidelity National Financial, while trimming back on CBRE Group and JLL Inc. [16] Sector Allocations - 40.3% of the Fund's capital is invested in U.S. residential real estate companies, supported by strong demand and low inventory levels [18] - 27.5% is allocated to North American commercial real estate companies, which are expected to benefit from structural demand drivers [19] - 27.6% is invested in international real estate companies, focusing on similar activities as domestic holdings [20] - The remaining 4.6% is in cash, debt, and options, including U.S. Dollar cash and short-term U.S. Treasuries [21] Market Insights - The Fund Management believes that the next five years could mirror the early 2000s, with compelling valuations for listed real estate leading to net inflows and differentiated returns [29][30] - The report highlights the significant size of the publicly traded real estate market, with over $6 trillion accessible to investors globally [28]

Core Insights - Meritage Homes reported a revenue of $1.43 billion for the quarter ended December 2025, reflecting an 11.5% decrease year-over-year and falling short of the Zacks Consensus Estimate of $1.51 billion, resulting in a surprise of -5.16% [1] - The company's earnings per share (EPS) was $1.67, significantly lower than the $4.72 reported in the same quarter last year, but exceeded the consensus EPS estimate of $1.55, yielding a surprise of +8.06% [1] Financial Performance Metrics - Homes ordered totaled 3,224, which was below the average estimate of 3,521 by eight analysts [4] - Home closing revenue's average sales price was $375.00, compared to the estimated $385.51, indicating a shortfall [4] - The order backlog stood at 1,168 homes, lower than the average estimate of 1,333 [4] - Homes closed totaled 3,755, again below the average estimate of 3,887 [4] - The order backlog's average sales price was $377.00, compared to the estimated $407.72 [4] - Active communities at the end of the period totaled 336, slightly above the estimate of 332 [4] - The order backlog value was $440.56 million, significantly lower than the average estimate of $547.9 million [4] - Home orders' average sales price was $374.00, compared to the estimated $388.63 [4] - Total closing revenue from homebuilding was $1.43 billion, below the average estimate of $1.51 billion, marking an 11.5% year-over-year decline [4] - Home closing revenue was $1.41 billion, compared to the estimated $1.5 billion, reflecting an 11.9% decrease year-over-year [4] - Financial services revenue was $8.24 million, slightly below the estimated $8.65 million, representing a 2.3% decline year-over-year [4] - Land closing revenue was $21.07 million, exceeding the average estimate of $10.73 million, with a year-over-year increase of 21.4% [4] Stock Performance - Meritage shares have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.8% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company delivered 3,435 residential units in Q4 2025, exceeding guidance, with a total of 10,792 units delivered for the full year [4] - Net income for Q4 was $36 million, or $1.21 per diluted share, with adjusted net income at $47 million, or $1.59 per diluted share [19] - Home sales revenues for Q4 reached $1.1 billion, up 16% sequentially, while average sales price decreased by 5% to $367,000 [19][20] - The company reduced net leverage to 26% and generated cash flow from operations of over $150 million [5] Business Line Data and Key Metrics Changes - The Century Living segment contributed to revenues with the sale of a 300-unit multifamily community for $97 million [20] - The company achieved a record net new contracts of 2,702 homes in Q4, a 10% increase year-over-year and a 13% increase sequentially [9] - Direct construction costs decreased by an average of $13,000 per home, and cycle times improved to a record 114 calendar days [6][12] Market Data and Key Metrics Changes - The mortgage capture rate was 84% for both Q4 and the full year, representing records for the company [22] - Adjustable rate mortgages accounted for approximately 25% of originated mortgages in Q4, up from nearly 20% in Q3 [11] Company Strategy and Development Direction - The company plans to grow deliveries by 10% annually in 2026 and 2027 based on existing lot counts, assuming improved market conditions [6][15] - A disciplined approach will be maintained in slower market conditions, focusing on flexibility in land acquisition and development [7][15] - The company aims to deepen its market share in existing markets to drive improved margins and returns [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the spring selling season, noting improved order activity and potential consumer interest [28][30] - The company remains cautious, acknowledging that previous expectations for strong sales did not materialize last year [28][52] - Management highlighted the importance of external factors such as interest rate relief and consumer confidence in driving demand [7] Other Important Information - The company repurchased over 7% of its shares outstanding at the beginning of the year and returned a record $178 million to shareholders through dividends and share repurchases [5][23] - The average community count increased by 13% to 318 communities, with expectations for low- to mid-single-digit percentage growth in 2026 [12][14] Q&A Session Summary Question: Insights on the spring selling season and consumer behavior - Management noted that while January sales pace has been slower, order activity has improved sequentially, and there is hope for a better spring selling season [27][28] Question: Expectations for gross margin in the upcoming quarter - Management indicated that gross margins may see a slight pullback due to incentives but expect a more balanced approach moving forward [39] Question: Geographic performance trends - Management did not identify specific regions outperforming others but noted increased traffic driven by mortgage rate trends [40] Question: Remaining stock repurchase authorization - Approximately 1.5 million shares remain under the stock repurchase program [42] Question: Factors influencing SG&A as a percentage of sales - Management explained that Q1 is typically the lowest closing quarter, contributing to a higher percentage of SG&A [49] Question: Confidence in dialing back incentives - Management expressed caution, indicating that they will need to monitor market conditions closely before adjusting incentives [52]

Financial Data and Key Metrics Changes - The company delivered 3,435 residential units in Q4 2025, exceeding guidance, with a total of 10,792 units delivered for the full year [4] - Net income for Q4 was $36 million, or $1.21 per diluted share, with adjusted net income at $47 million, or $1.59 per diluted share [19] - Home sales revenues for Q4 reached $1.1 billion, up 16% sequentially, while average sales price decreased by 5% to $367,000 [19] Business Line Data and Key Metrics Changes - The Century Living segment contributed to revenues with the sale of a 300-unit multifamily community for $97 million [20] - The company repurchased over 7% of its shares outstanding at the beginning of the year, totaling 2.3 million shares for $178 million [5][25] Market Data and Key Metrics Changes - The average community count increased by 13% to 318 communities in 2025, with expectations for low- to mid-single-digit percentage growth in 2026 [12][14] - The mortgage capture rate was 84% for both Q4 2025 and the full year, representing records for the company [23] Company Strategy and Development Direction - The company plans to maintain a disciplined approach to growth, focusing on existing lot counts and not expanding for the sake of growth alone [7] - The land acquisition and development expense is expected to remain flat in 2026, with the ability to adjust based on market conditions [15][16] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the spring selling season, noting improved order activity and potential consumer interest [29][31] - The company anticipates that any interest rate relief or governmental support for homebuyers could unlock buyer demand [7] Other Important Information - The company maintained a quarterly cash dividend of $0.29 per share and ended the year with $2.6 billion in stockholders' equity [24] - The company achieved a record book value per share of $89 at the end of Q4 2025 [5][25] Q&A Session Summary Question: Insights on the spring selling season - Management noted that while January sales pace has been slower compared to the previous year, order activity has improved sequentially, and they are hopeful for a better spring selling season [29][30] Question: Expectations for gross margin - Management indicated that gross margins may see a slight pullback due to incentives but expect to revert to a more balanced approach in the future [41][42] Question: Community count growth - Management expects community count to grow steadily throughout the year, particularly in the middle and back half of the year [33] Question: Stock repurchase authorization - Approximately 1.5 million shares remain under the stock repurchase program [45] Question: SG&A as a percentage of sales - SG&A is expected to be 14.5% in Q1 2026, higher than previous levels due to typical seasonal trends [51][52]

Financial Data and Key Metrics Changes - The company delivered 3,435 residential units in Q4 2025, bringing the full-year total to 10,792 units, which reflects a strong performance despite market challenges [4] - Pre-tax income for Q4 was $47 million, with net income of $36 million or $1.21 per diluted share, while adjusted net income was $47 million or $1.59 per diluted share [19] - Home sales revenues for Q4 reached $1.1 billion, up 16% sequentially, while average sales price decreased by 5% to $367,000 due to increased incentives [19][20] - The company repurchased over 7% of its shares outstanding at the beginning of the year, returning a record $178 million to shareholders through dividends and share repurchases [5][24] Business Line Data and Key Metrics Changes - The Century Living segment contributed to revenues with the sale of a 300-unit multifamily community for $97 million in Q4 [20] - The company achieved a record net new contracts of 2,702 homes in Q4, representing a 10% increase year-over-year and a 13% increase sequentially [10] - The average community count increased by 13% to 318 communities for the full year, with expectations for low- to mid-single-digit percentage growth in 2026 [13][14] Market Data and Key Metrics Changes - The company noted improved absorption rates, averaging 2.9 homes per community in Q4, which is a 12% year-over-year increase [10] - Adjustable rate mortgages accounted for approximately 25% of originated mortgages in Q4, up from nearly 20% in Q3 [12] - The company expects home deliveries for 2026 to range from 10,000 to 11,000 homes, reflecting a stable market outlook [24][25] Company Strategy and Development Direction - The company plans to maintain a disciplined approach to growth, focusing on existing lot counts and not expanding for the sake of growth alone [7] - The land acquisition and development expense is expected to remain flat in 2026, with the ability to adjust based on market conditions [14][15] - The company aims to deepen its market share in existing areas to drive improved margins and returns [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential interest rate relief and improved consumer confidence unlocking buyer demand [8] - The company is hopeful for a stronger spring selling season compared to the previous year, despite a slower sales pace in early 2026 [28] - Management acknowledged the need to monitor market conditions closely and adjust strategies accordingly [53] Other Important Information - The company maintained a quarterly cash dividend of $0.29 per share and ended the quarter with $2.6 billion in stockholders' equity and $1.1 billion of liquidity [23] - The tax rate for Q4 was 23.5%, with expectations for a full-year tax rate of 25%-26% in 2026 [22] Q&A Session Summary Question: Insights on the spring selling season and consumer behavior - Management noted that while January sales pace has been slower compared to the previous year, order activity has improved sequentially, and there is hope for better performance in the spring selling season [28][30] Question: Community count growth expectations - Management indicated that the average community count is expected to grow steadily throughout the year, particularly in the middle and back half of 2026 [32] Question: Gross margin outlook - Management anticipates a slight pullback in gross margins due to increased incentives but expects to revert to a more balanced approach as the year progresses [40] Question: Geographic performance trends - Management did not identify specific regions outperforming others but noted increased traffic driven by mortgage rate trends [42] Question: Stock repurchase authorization status - Management confirmed that approximately 1.5 million shares remain under the stock repurchase program [44] Question: SG&A as a percentage of sales in Q1 2026 - Management confirmed an expected SG&A percentage of 14.5% in Q1 2026, which is higher due to typically lower closing volumes in that quarter [49][50] Question: Confidence in dialing back incentives - Management expressed cautious optimism about reducing incentives as market conditions improve, but emphasized the need to monitor the situation closely [53]