Group 1 - The average housing price in Mongolia for the first half of 2025 is 3.8 million Tugrik per square meter (approximately 7630.52 RMB), while luxury residential properties average 6.6 million Tugrik (approximately 13253.01 RMB) [1] - Real estate agencies completed 5466 transactions with a total area of 2.2937 million square meters and a total value of 1.39 trillion Tugrik (approximately 27.91 billion RMB), representing year-on-year increases of 2.7% and 10.3% respectively [1] - The transaction structure shows that land accounts for 82.5%, residential properties 14.8%, commercial real estate 1.7%, and industrial real estate 1% [1] Group 2 - In the rental market, real estate agencies completed 3979 rental transactions with a total area of 313,300 square meters and a total value of 125.6 billion Tugrik (approximately 2.52 billion RMB), with area decreasing by 0.3% year-on-year but value increasing by 21.7% [1] - The highest proportion of rental housing is in the 51 to 100 square meter category, accounting for 33.5% [1] - There are currently 303 licensed real estate agencies in Mongolia, a decrease of 8 from the previous year, with total assets of 225.5 billion Tugrik (approximately 4.53 billion RMB), of which current assets are 167.5 billion Tugrik (approximately 3.36 billion RMB) [1]

Financial Data and Key Metrics Changes - The company delivered 2,959 homes at an average price of $974,000, generating record third-quarter home sale revenues of $2,900,000,000, which represents a 5% increase in units and a 6% increase in dollars compared to the previous year's third quarter [6][14]. - Adjusted gross margin for the quarter was 27.5%, exceeding guidance by 25 basis points, while SG&A expenses were 8.8% of home sales revenues, 40 basis points better than guidance [6][16]. - Earnings for the quarter were $370,000,000, or $3.73 per diluted share, with a return of approximately $226,000,000 to stockholders through dividends and share repurchases [6][19]. Business Line Data and Key Metrics Changes - The company signed 2,388 net contracts for $2,400,000,000, reflecting a 4% decline in units but flat in dollars due to an increase in average sales price to just over $1,000,000 [6][15]. - The average price of contracts signed in the quarter was $1,010,000, while the average price in the backlog was $1,160,000, indicating strong financial profiles of buyers [16][9]. - The cancellation rate was 3.2% of the beginning backlog, compared to 2.4% in the previous year's third quarter, reflecting the financial strength of buyers [10]. Market Data and Key Metrics Changes - The company ended the third quarter with 420 active selling communities and expects to reach 440 to 450 communities by the end of the fiscal year, representing 8% to 10% year-over-year growth [11][12]. - The company has 3,200 spec homes at various stages of construction and another 1,800 building permits ready to go, allowing for quick ramp-up in production as market conditions improve [8][9]. Company Strategy and Development Direction - The company continues to prioritize price and margin over pace, actively managing spec starts and inventory levels on a community-by-community basis to match local market conditions [7][11]. - The strategy of selling spec homes at various stages of construction allows buyers to personalize their homes while providing a faster construction schedule [8][9]. - The company remains focused on capital-efficient deal structures and maintaining a strong land position to support long-term growth [12][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a full-year adjusted gross margin of 27.25% and expects to deliver approximately 11,200 homes for the full year [21][22]. - The management noted that building costs are beginning to come down modestly, with no significant impact from tariffs expected this fiscal year [10][11]. - There is optimism regarding community count growth and sales pace for fiscal year 2026, with expectations of 20 to 30 openings in Q4 [34][39]. Other Important Information - The company issued $500,000,000 of ten-year senior notes at a 5.6% coupon and called $350,000,000 of senior notes scheduled to mature in November, extending the weighted average years to maturity of senior notes [19]. - The company spent $433,000,000 on new land acquisitions during the quarter, maintaining a disciplined approach to underwriting [12][19]. Q&A Session Summary Question: Cash flow from operations guidance - The company expects to generate over $1,000,000,000 in cash flow from operations, with year-to-date cash flow around $400 million [27][28]. Question: Sales pace and incentives - Sales pace improved from May to August, with incentives increasing from 7% to 8% primarily due to discounting on finished spec homes [48][49]. Question: Order picture for Q4 - Management is optimistic about community count growth in Q4, with new openings expected to drive orders [60][61]. Question: Development costs and cycle times - The company has not seen much relief on land development costs, and cycle times vary across communities, with efforts ongoing to improve efficiency [68][77]. Question: Spec mix and margin differentials - The current spec mix is around 50%, compared to 10-15% pre-COVID, with margins on build-to-order homes being higher than spec homes [88][89].

Financial Data and Key Metrics Changes - The company delivered 2,959 homes at an average price of $974,000, generating record third-quarter home sale revenues of $2,900,000,000, which represents a 5% increase in units and a 6% increase in dollars compared to the previous year [5][15] - Adjusted gross margin was 27.5%, exceeding guidance by 25 basis points, while SG&A expense was 8.8% of home sales revenues, 40 basis points better than guidance [5][16] - Third-quarter earnings were $370,000,000 or $3.73 per diluted share, with a cancellation rate of 3.2%, which remains the lowest in the industry [10][15] Business Line Data and Key Metrics Changes - The company signed 2,388 net contracts for $2,400,000,000, with units down approximately 4% year over year, but dollars flat due to an increase in average sales price to just over $1,000,000 [5][15] - The average sales price (ASP) was up 4.5% versus 2024 and up 3% versus the last quarter, indicating resilience in the luxury business [5][15] - The backlog stood at 5,492 homes valued at $6,376,000,000, with an average sales price in the backlog of $1,160,000 [9] Market Data and Key Metrics Changes - The company ended the third quarter with 420 active selling communities and expects to end the fiscal year with 440 to 450 communities, representing 8% to 10% year-over-year growth [11][12] - The company has 3,200 spec homes at various stages of completion and another 1,800 building permits ready to go, allowing for quick ramp-up of spec production as market conditions improve [7][9] Company Strategy and Development Direction - The company continues to prioritize price and margin over pace, actively managing spec starts and inventory levels on a community-by-community basis to match local market conditions [6][11] - The strategy of selling spec homes at various stages of construction allows buyers to personalize their homes while providing a faster construction schedule [8][9] - The company remains disciplined in its land acquisition strategy, focusing on high-quality land at attractive returns while keeping land off balance sheet as long as practical [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a full-year adjusted gross margin of 27.25% and expects to deliver approximately 11,200 homes for the full year [6][23] - The company anticipates a modest decline in build costs and has not seen significant impacts from tariffs, with expectations for build costs to come down in the foreseeable future [10][11] - Management highlighted the importance of community openings and spec strategy to drive growth in fiscal year 2026, with optimism about market conditions improving [36][41] Other Important Information - The company returned approximately $226,000,000 to stockholders through dividends and share repurchases in the quarter [5] - The company issued $500,000,000 of ten-year senior notes at a 5.6% coupon and called $350,000,000 of senior notes scheduled to mature in November [20][21] Q&A Session Summary Question: Cash flow from operations guidance - The year-to-date cash flow from operations is approximately $400 million, with expectations to reach over $1,000,000,000 by year-end [29][30] Question: Construction costs expectations - Management expects construction costs to be flat to modestly down in the short term, with some progress in negotiating better pricing for materials [31][32] Question: Sales pace and community growth - Management confirmed no change in the sales pace target of two homes per community per month and expressed excitement about community count growth in fiscal year 2026 [35][36] Question: Incentives and sales trends - Incentives increased to 8% due to more discounting on finished specs, but management noted that incentives have stabilized recently [50][51] Question: Development costs and community count guidance - Management has not seen much relief on land development costs but expects community count growth to be spread throughout the quarter without significant regional concentration [69][72]

Financial Data and Key Metrics Changes - The company delivered 2,899 homes at an average price of approximately $934,000, generating record second quarter home sales revenue of $2,710,000,000, which is $236,000,000 better than the midpoint of guidance [4][5] - Adjusted gross margin was 27.5%, and SG&A margin was 9.5%, which were 25 and 80 basis points better than guidance respectively [4][20] - Earnings for the quarter were $352,400,000 or $3.5 per diluted share, marking a record for second quarter earnings per share [5][18] Business Line Data and Key Metrics Changes - The average sales price in the quarter was approximately $983,000, down from $1,000,000 in the first quarter and up from $967,000 in the second quarter of fiscal year 2024 [7] - The company signed 2,650 net agreements for $2,600,000,000, down approximately 13% in units and 11% in dollars compared to the previous year's second quarter [6][19] - The backlog at the end of the second quarter stood at $6,840,000,000 and 6,063 homes, down 7% in dollars and 15% in units compared to a year ago [19] Market Data and Key Metrics Changes - Softer demand was noted in the second quarter due to a decline in consumer confidence driven by increased economic uncertainty [6] - The company experienced a modest increase in incentives, which were approximately 7% of the average sales price, up from a recent average of 5% to 6% [7] - The financial strength of the customer base was highlighted by an industry-low cancellation rate of 2.8% and a high percentage of all-cash buyers at approximately 24% [10] Company Strategy and Development Direction - The company is focused on prioritizing price and margin over pace in the current market environment [6][24] - A balanced approach is being maintained to navigate the market effectively, with a strategy of reducing spec starts to match local market conditions [8][11] - The company aims for community count growth, projecting to reach approximately 440 to 450 communities by the end of fiscal year 2025, representing an 8% to 10% increase [11][26] Management's Comments on Operating Environment and Future Outlook - The near-term outlook for the housing market remains cloudy due to affordability pressures and macroeconomic volatility, but the long-term outlook for the luxury home market is positive [9] - Management expressed confidence in the financial strength of their customer base and the ability to navigate through challenging markets [10][12] - The company has tightened underwriting standards and reduced land spend on new deals, expecting this to primarily impact fiscal year 2026 [13] Other Important Information - The company controlled approximately 78,600 lots at the end of the second quarter, with 58% optioned, reflecting a focus on capital-efficient land deals [12] - Cash and cash equivalents stood at approximately $686,000,000, with a net debt to capital ratio of 19.8% [13][21] - The company increased its projected share repurchases for fiscal year 2025 from $500,000,000 to $600,000,000 [14][22] Q&A Session Summary Question: Update on spec data and homes under construction - The company has just over 1,000 fully completed spec units and approximately 2,400 in progress, with permits available for another 1,000 to 2,000 [34][36] Question: Thoughts on second half gross margin sustainability - The company expects the fourth quarter margin to be about the same as the third quarter at 27.25%, with some downward pressure from spec sell and settles but offset by a favorable mix [46] Question: Granularity on homes in progress and potential settlements - Approximately 1,900 homes will need to come from spec inventory, with 1,000 completed and more than 900 under construction expected to deliver by the end of the fiscal year [52][54] Question: Demand trends in May compared to previous months - Demand in May was consistent with March and April, with expectations for better sales in June and July, but overall market conditions remain softer than anticipated [62][66] Question: Commentary on foreign national buyers - Less than 5% of buyers are foreign nationals, with no significant changes in demand noted year to date [96]

Financial Data and Key Metrics Changes - The company delivered 2,899 homes at an average price of approximately $934,000, generating record second quarter home sales revenue of $2,710,000,000, which is $236,000,000 better than the midpoint of guidance [4][16] - Adjusted gross margin was 27.5%, and SG&A margin was 9.5%, which were 25 and 80 basis points better than guidance respectively [4][18] - Earnings for the quarter were $352,400,000 or $3.5 per diluted share, marking a record for second quarter earnings per share [5] Business Line Data and Key Metrics Changes - The company signed 2,650 net agreements for $2,600,000,000, down approximately 13% in units and 11% in dollars compared to the previous year's second quarter [6][17] - The average price of contracts signed in the quarter was approximately $983,000, up 1.6% compared to last year [17] - The backlog at the end of the second quarter stood at $6,840,000,000 and 6,063 homes, down 7% in dollars and 15% in units compared to a year ago [17] Market Data and Key Metrics Changes - The average sales price in the quarter was approximately $983,000, compared to $1,000,000 in the first quarter and $967,000 in the second quarter of the previous fiscal year [7] - Incentives were approximately 7% of the average sales price, up from the recent average of 5% to 6% [7] - The company has been reducing spec starts to match local market conditions [8] Company Strategy and Development Direction - The company is focused on prioritizing price and margin over pace in the current market environment [6][21] - The strategy includes a balanced approach to managing spec homes while enhancing capital efficiency and returning capital to stockholders [8][14] - The long-term outlook for the new home market remains positive, particularly for the luxury niche, despite short-term challenges [10] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence has declined due to increased economic uncertainty, impacting demand [6][10] - The company is confident in its ability to navigate the current market conditions and maintain its guidance for fiscal 2025 [5][12] - Management highlighted the financial strength of its customer base, with a low cancellation rate and a high percentage of all-cash buyers [11] Other Important Information - The company controlled approximately 78,600 lots at the end of the second quarter, with 58% optioned [13] - Cash and cash equivalents stood at approximately $686,000,000, with a net debt to capital ratio of 19.8% [14][19] - The company plans to increase projected share repurchases in fiscal 2025 from $500,000,000 to $600,000,000 [15][20] Q&A Session Summary Question: Update on spec data and homes under construction - The company has just over 1,000 fully completed spec units and approximately 2,400 in progress, with permits available for another 1,000 or two [29][32] Question: Insights on gross margin outlook for the second half - The company expects the fourth quarter margin to be about the same as the third quarter at 27.25%, with some downward pressure from spec sell and settles [42][43] Question: Clarification on backlog and deliveries - The company has roughly 6,400 units left to deliver this year, with about 4,500 expected from backlog and 1,900 from spec inventory [46][48] Question: Commentary on demand trends and market conditions - Demand has been softer than expected, but the company is managing well in the current market, with a focus on affluent buyers [58][62] Question: Land spend dynamics and confidence in the land market - The land spend in the second quarter was $362,000,000, with a cautious approach expected moving forward due to market conditions [104][106] Question: Geographic market performance - Strong markets included New Jersey, Pennsylvania, New York, and parts of California, while softer markets included the Pacific Northwest and parts of Florida [110]

Group 1 - The core viewpoint of the report is that family offices are increasingly favoring real estate investments due to its growth potential and wealth preservation capabilities [1][2] - Real estate constitutes a significant portion of family office investment portfolios, ranking just behind stocks and cash, with office buildings (20%), luxury residences (17%), industrial properties (14%), and hotels (12%) being the most allocated sectors [2][3] - Approximately 70% of real estate investments are domestic, with New Zealand (93%), Australia (90%), and the United States (86%) showing the highest domestic investment focus [2] Group 2 - Family offices view real estate as part of a broader investment strategy, balancing it with listed stocks, venture capital, or other private investments, and some see it as a strategic asset for core business operations [3] - Two-thirds of family offices manage private residential properties, primarily for family use and inheritance (44%), capital preservation (29%), and diversification (20%), with rental income being a lesser priority [5] - The most sought-after real estate sectors by family offices include living spaces (14%), industrial/logistics (13%), and luxury residences (12%) [7] Group 3 - Family offices express interest in expanding their real estate investments, particularly in living spaces, logistics, luxury residences, and hotels, but face challenges such as finding reliable partners (23%), tax regulations (20%), and asset competition (19%) [8] - In commercial real estate, opportunities are identified in gateway city office buildings, which are seen as volatility hedges, especially in light of increasing geopolitical risks [10][11] - Investors are also focusing on sectors with structural tailwinds, such as logistics and living spaces, while retail real estate in developed markets remains a point of interest [12][13] Group 4 - The report highlights a growing interest in ESG assets, with 90% of institutional investors setting social goals, and 73% focusing on workplace well-being [14][16] - The wine industry presents investment opportunities, particularly in vineyards, with prices in certain regions expected to decline significantly, while others remain stable [17][18] - The luxury goods market is experiencing mixed performance, with some sectors showing growth while others, like art and wine, are facing declines [22][24] Group 5 - The issue of inheritance is pressing, with 58% of family offices indicating that the next generation is involved in investment decisions, leading to changes in investment strategies [27][28] - Cultural and moral differences between generations affect investment strategies, with a notable shift towards sustainable investments among millennials compared to baby boomers [29]