ARCHIVE_Capital Division Tour March 2025

LAP Version 8.2

Project: 20' RL TH Westphalia

Florida/Mid Atlantic Region - Capital - Maryland

Date Prepared:

2/25/25

42203

Revenue

Lot

Direct Construction

Other Direct & Indirect

JDE Code:

Fnd **Plan #

# of

Gross

Avg. Lot

Disc. &

Net

Land & Area

Total

Sales

Closing Warranty Interest

Gross Profit

Type or Name Sq Foot

Units

Base

Options

Revenue

Premium Allow.

Revenue

Develop.

Costs

Permits

Base

Options

Sticks

Commis.

Cost

& Other

in COS

GM%

S Columbus

1,962 359

479,990

479,990

479,990

98,105

47,355

163,303

210,658

14,400 15,000 4,800 18,367

118,660

24.7%

Wghtd Avg / u

1,962 359

479,990

479,990

479,990

98,105

47,355

163,303

210,658

14,400 15,000 4,800 18,367

118,660

24.7%

PROFITABILITY

TIMING

KEY METRICS

Totals

Per Unit

% of Rev Per sq. ft.

Base House

172,316,410 479,990

100.0% 244.64

Hard EM amount

$ $

78,211 Cash

Options

- - -

- - -

- - -

EM Note

-

Number of Product Lines

2

Lot Premium

Hard EMD Date

10/13/20

Average Absorption

4.3

Disc & Allowances Total Net Revenue

EM Released to Seller

$

-

Construction Cycle Time Maximum # of Specs

4

172,316,410 479,990

100.0% 244.64

Initial land closing

Jan-24

17

-

No refundables

Land Acquisition

11,285,977 23,933,785 35,219,763

31,437 66,668 98,105

6.5%

16.02 in projection

LD Spend Begins Begin Moving Dirt

Jan-24 Jan-24

ROI and Turnover

Development

13.9% 33.98 20.4% 50.00

Gross ROI (GM/Avg Inv) Net ROI (PTI/Avg Inv)

45.4% 27.8%

Total Land & Development

Start Models

N/A

First Production Start

Mar-25

ACOS % 12% Inv. Turn

1.84

Base S&B

58,625,834 163,303

34.0% 83.23

(Rev /Avg Inv)

Options

- -

- -

- -

First Sale

Jul-25 Sep-25

Inventory

Area Costs

First Closing

Average Inventory

$10,716,451 $17,261,928

Permits

17,000,495

47,355

9.9%

24.14

Peak Inventory

Total S&B

75,626,330 210,658

43.9% 107.37

Last Sale

May-32 Aug-32

Peak occurs

Aug-25

Last Closing

IRR & NPV

Commissions Closing Costs

5,169,492 5,385,000 1,723,164 6,593,587

14,400 15,000

3.0% 3.1% 1.0% 3.8%

7.34 7.65 2.45 9.36

Interest in COS rate

Internal Rate of Return

33.6%

as a % of COS

Land Close to First Unit Clo (months)

20 83

Net Present Value

$15,886,277

Warranty & Other

4,800

base 3.0%

effective First to Last Unit Closing (months) 5.9% Total Project Duration (months)

Discount Rate

10%

Interest in COS Allocation

18,367

103

Total GM-Homes

42,599,074 118,660

24.7% 60.48

SGA Spread 1st sale or start to last clo

Avg lot size (W x D) JDE Subledger Code

20 x 60 2587586

CASH RECOVERY

Land Sale Revenue

- - -

- - -

- - -

CRA calc begin date = initial land closing date

Jan-24

Land Sale Cost of Sales

Closings 1 year from initial investment

GM-Land Sales

Closings req'd to return committed investment # Months req'd to return committed investment Month committed investment is returned

59 29

Approved:

Total Gross Margin

42,599,074 118,660

24.7% 60.48

Jun-26

Date:

For Closing

Division SG&A

13,785,313 2,717,055 16,502,368 26,096,706

38,399

8.0% 1.6% 9.6%

19.57

Corp & Reg SGA Alloc

7,568

3.86

Rolling Option of Raw Land.

Total SGA (Fully Loaded)

45,968 72,693

23.43

Low development risk

Total PTI

15.1% 37.05

Note: Interest is COS is shown at the effective rate, not the stated (base) rate. Because this project extends beyond 3 years, and the rate increases in later years, GM is

Brand: Series:

Horton 20' TH

Direct Interest Allocation PTI after all Corp Charges

-

-

-

26,096,706

72,693

15.1% 37.05

Fin Svcs & Rebates

-

-

-

lower than if calculated on the base rate.

Grand Total PTI

26,096,706

72,693

15.1% 37.05

Initial Land Take

Year 1 Year 2 Dec-24 Dec-25

Year 3 Dec-26

Year 4 Dec-27

Year 5 Year 6 Dec-28 Dec-29

Year 7 Dec-30

Year 8 Year 9 Dec-31 Aug-32

ROI by year ending (annualized)

Jan-24

Gross ROI

20.9% 61.3% 42.4% 47.6% 40.7% 30.1% 68.8% 163.5%

Net ROI

(2.9%)

6.9% 45.1% 26.1% 27.6% 17.7% 13.2% 48.7% 122.5%

Gross Profit and GM% will differ by Fiscal Year where Interest in COS > the stated rate OR where a lot cost escalator is included in the assumptions. Homes GP & GM per unit by FY FY 2025

FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032

Dollars in 000's As a % of Rev

125.3

123.3

121.8

119.9

116.8

115.7

115.5 114.7

26.1% 25.7% 25.4% 25.0% 24.3% 24.1% 24.1% 23.9%

2/27/2025 11:55 AM

P:\COMPANYWIDE\Land Acquisition & Development\Properties_ACTIVE\Westphalia\Acquisition\LAPs\Tour LAPS\6. (CAP-MD) Westphalia - Phase 2&3 PSA - Consolidated LAP_25.2.25_FebTake Summary1

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