ARCHIVE_Capital Division Tour March 2025

LAP Version 8.2

Project: SFD 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%

B Penwell B Hayden B Hanover

2,148 11 2,169 11 2,511 12

639,990 649,990 669,990

639,990 649,990 669,990

639,990 649,990 669,990

221,428 221,428 204,162

47,355 47,355 47,355

205,705 221,220 225,379

253,060 268,575 272,734

19,200 15,000 3,200 22,469 19,500 15,000 3,250 23,204 20,100 15,000 3,350 22,583

105,634 99,033 132,061

16.5% 15.2% 19.7%

Wghtd Avg / u

2,283 34

653,814

653,814

653,814

215,334

47,355

217,668

265,023

19,614 15,000 3,269 22,747

112,826

17.3%

PROFITABILITY

TIMING

KEY METRICS

Totals

Per Unit

% of Rev Per sq. ft.

Base House

22,229,660 653,814

100.0% 286.39

Hard EM amount

$

9,904 Cash

Options

- - -

- - -

- - -

EM Note

$

-

Number of Product Lines

1

Lot Premium

Hard EMD Date

10/13/20

Average Absorption

1.4

Disc & Allowances Total Net Revenue

EM Released to Seller

$

-

Construction Cycle Time Maximum # of Specs

5 7

22,229,660 653,814

100.0% 286.39

Initial land closing

Jan-24

-

No refundables

Land Acquisition

1,093,808

32,171

4.9%

14.09 in projection

LD Spend Begins Begin Moving Dirt

Jan-24 Jan-24

ROI and Turnover

Development

6,227,554 183,163 7,321,362 215,334

28.0% 80.23 32.9% 94.32

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

31.6% 14.1%

Total Land & Development

Start Models

N/A

First Production Start

Mar-25

ACOS % 9% Inv. Turn

1.83

Base S&B

7,400,721 217,668

33.3% 95.35

(Rev /Avg Inv)

Options

- -

- -

- -

First Sale

Jul-25 Sep-25

Inventory

Area Costs

First Closing

Average Inventory

$3,162,617 $6,654,893

Permits

1,610,075

47,355

7.2%

20.74

Peak Inventory

Total S&B

9,010,795 265,023

40.5% 116.09

Last Sale

Jul-27 Sep-27

Peak occurs

Aug-25

Last Closing

IRR & NPV

Commissions Closing Costs

666,890 510,000 111,148 773,390

19,614 15,000

3.0% 2.3% 0.5% 3.5%

8.59 6.57 1.43 9.96

Interest in COS rate

Internal Rate of Return

27.1%

as a % of COS

Land Close to First Unit Clo (months)

20 24 44

Net Present Value

$1,647,386

Warranty & Other

3,269

base 3.0%

effective First to Last Unit Closing (months) 4.7% Total Project Duration (months)

Discount Rate

10%

Interest in COS Allocation

22,747

Total GM-Homes

3,836,075 112,826

17.3% 49.42

SGA Spread 1st sale or start to last clo

Avg lot size (W x D) JDE Subledger Code

50 x 85 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

16 27

Approved:

Total Gross Margin

3,836,075 112,826

17.3% 49.42

Apr-26

Date:

For Closing

Division SG&A

1,778,373

52,305 10,323 62,628 50,198

8.0% 1.6% 9.6% 7.7%

22.91

Corp & Reg SGA Alloc

350,969

4.52

Rolling Option of Raw Land.

Total SGA (Fully Loaded)

2,129,342 1,706,733

27.43 21.99

Low development risk

Total PTI

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 Horton

Direct Interest Allocation PTI after all Corp Charges

-

-

-

1,706,733

50,198

7.7%

21.99

Fin Svcs & Rebates

-

-

-

lower than if calculated on the base rate.

Grand Total PTI

1,706,733

50,198

7.7%

21.99

Initial Land Take

Year 1 Year 2 Dec-24 Dec-25

Year 3 Dec-26

Year 4 Sep-27

ROI by year ending (annualized)

Jan-24

Gross ROI

18.3% 47.6% 69.2%

Net ROI 4.1% 23.9% 39.3% 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 (2.9%)

FY 2026 FY 2027

Dollars in 000's As a % of Rev

116.5

113.6

110.9

17.8% 17.4% 17.0%

2/27/2025 11:56 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 Summary3

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