Slides
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Investor Presentation Fourth Quarter 2025
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2 We are backed by a reputation for an exceptional customer experience and a commitment to our teams and communities About Taylor Morrison (NYSE: TMHC) Our portfolio of brands offers for-sale and for-rent housing in distinctive communities, complemented by financial services Headquartered in Scottsdale, AZ Leading builder with operations across 12 states Diverse product offerings in prime locations Experienced leadership team Balanced operating model delivers strong financial results Track-record of growth, innovation and prudent capital allocation
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3 What sets Taylor Morrison apart National, regional and local scale Substantial scale provides operational efficiencies, cost leverage, land access and other competitive advantages Diversified consumer groups and price points Exposure to key demographic groups mitigates risk and enables a balanced spec and to-be-built business Core locations in prime submarkets Concentration in prime locations enhances our portfolio’s through-the-cycle resiliency 1 5 3 4 Strong financial performance Robust profit margins and cash flow driven by revenue growth and disciplined cost management 2 Well-capitalized balance sheet Significant financial flexibility to invest for growth and drive shareholder returns 6 Community-focused land developer Development expertise adds value to homebuilding operations and expands investment opportunities 7 America’s Most Trusted® builder Committed to delivering an exceptional customer experience and embracing smart innovation 8 Differentiated financial services Leveraging finance as a sales tool improves customer experience, operational predictability and profitability
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4 4 A transformative journey greatly expanded our platform while delivering strong results Acquired JEH Homes (Atlanta) and three divisions of Orleans Homes (Charlotte, Raleigh, Chicago) 2015 Acquired Acadia Homes (Atlanta) 2016 Increased public float to 70% from 25% through divestiture of private equity sponsors’ ownership 2017 Became a fully-floated public company Acquired AV Homes, adding scale to AZ, TX and Carolinas markets and entrance into Jacksonville 2018 Debuted on the Fortune 500 List 2021 Launched Build-to- Rent brand, Yardly 2022 Celebrated 100,000 home closings since IPO 2023 Entered Indianapolis with acquisition of Pyatt Builders 2024 Named to Forbe’s Most Trusted Companies in America and Best Companies in America lists 2025 Acquired William Lyon Homes, adding scale to AZ, CA and TX markets and entrance into WA, OR and NV Exited Chicago 2020 Debuted on NYSE in largest homebuilding industry IPO 2013 Closings: 6,311 Diluted EPS: $1.85 Closings: 12,997 Diluted EPS: $7.77 Named America’s Most Trusted Builder® for the 11th consecutive year and to Fortune’s World’s Most Admired Companies List 2026
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5 Most recent quarter at a glance 4Q 2025 4Q 2024 Year-Over-Year Change1 Net sales orders 2,499 2,621 (5%) Ending community count 341 339 1% Home closings revenue, net ($mm) $1,958 $2,170 (10%) Home closings 3,285 3,571 (8%) Home closings ASP $596,000 $608,000 (2%) Home closings gross margin 21.8% 24.8% (300) bps Adjusted home closings gross margin 21.8% 24.9% (310) bps SG&A % of home closings revenue 9.9% 9.4% 50 bps Reported diluted EPS $1.76 $2.30 (23%) Adjusted diluted EPS $1.91 $2.64 (28%) Book value per share2 $63.95 $55.87 14% 78,835 total homebuilding lots (54% controlled) 6.1 years of total lot supply (2.8 years owned) $1.8 billion total liquidity 13% return on equity3 (1) Subject to rounding; (2) Calculated used weighted average diluted shares; (3) ROE is calculated as trailing-twelve month net income divided by the average of stockholders’ equity in the current and prior-year period.
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6 Guidance metrics as of Feb. 11, 2026 First Quarter 2026 Full Year 2026 Ending active community count Around 360 Between 365 to 370 Home closings Approximately 2,200 Approximately 11,000 Average closing price Approximately $580,000 Between $580,000 to $590,000 Home closings gross margin1 (excluding any inventory-related charges) Approximately 20% Not provided SG&A % of home closings revenue Not provided Mid-10% range Effective tax rate 23.0% to 23.5% Approximately 25.0% Average diluted share count Approximately 98 million Approximately 95 million Homebuilding land investment Not provided Approximately $2 billion Share repurchases Not provided Approximately $400 million (1) A reconciliation of our forward-looking adjusted home closings gross margin to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted.
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7 21 12 16 West Central East % of Home Closings 32% 26% 42% % of Home Closings Revenue 39% 22% 39% Home Closings ASP $717,000 $520,000 $549,000 Home Closings Gross Margin 20.6% 23.3% 22.1% Our geographic footprint is focused on the country’s most attractive housing markets states markets top 10 market positions1 Data as of most recent quarter; Totals may not sum due to rounding. (1) Source: Zonda
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8 Our portfolio serves a broad range of buyer groups with to-be-built and spec home offerings 20% 33% 16% 31% Resort lifestyle 2nd Move-up 1st Move-up Entry level Net orders by consumer group $596K ~2,400 ~34% average square footage average closing price share of to-be-built home closings Data as of most recent quarter, unless specified
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9 • Our Esplanade brand offers a facilitated, concierge-style resort living experience in amenity-rich communities. • Since the brand’s conception in Florida, we have expanded its reach across the country in recent years and have a robust pipeline of new communities underway. • Esplanade attracts an affluent customer base, with approximately half of buyers paying all cash. • Given these consumers’ preference to customize their home on their desired lot, Esplanade generates superior average sales prices and gross margins. Esplanade, our premier resort lifestyle brand, has strong growth potential Actively selling in: Charlotte Naples Orlando Sacramento Sarasota Tampa Treasure Coast Coming soon in: Jacksonville Orlando Las Vegas Naples Sarasota Exploring expansion opportunities in: Atlanta Coastal Carolinas Indianapolis Phoenix Southern California Texas
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10 Our diverse customer base tends to have strong financial flexibility Mortgage unit product mix Mortgage capture rate$468,000 average loan amount 750 average FICO score 21% average downpayment 45% first-time homebuyers1 40% average debt-to-income ratio Conventional 73% FHA 17% VA 8% Jumbo 2% 89% 88% 88% 4Q 2024 3Q 2025 4Q 2025 Data as of most recent quarter, unless specified (1) Defined per mortgage disclosures as buyers who have not owned a home in the prior three years
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11 Strong balance sheet with significant liquidity • Focused on generating consistent operating cash flow • Substantial liquidity position of $1.8 billion • Conservative use of $1.0 billion unsecured revolving line of credit • S&P rated BB+ and Moody’s rated Ba1 • Capital allocation priorities • Maintain strong liquidity • Liability management • Efficiently invest for growth • Share repurchases Senior note maturity schedule ($mm) $450 $500 $525 2026 2027 2028 2029 2030 2031 2032 38.7% 34.1% 24.0% 16.8% 20.0% 17.8% 2020 2021 2022 2023 2024 2025 Homebuilding net debt to capitalization See Appendix for reconciliation
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12 Since 2020, we have opportunistically repurchased over $1.5 billion of our common stock outstanding Share repurchases ($mm) $281 $376 $128 $348 $381 2021 2022 2023 2024 2025 Share repurchases (in millions) 9.9 14.6 2.8 5.6 6.5 2021 2022 2023 2024 2025
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13 Land strategy focused on efficiently enhancing scale in prime submarkets • Disciplined strategy focuses on prime land locations • Returns-focused underwriting guardrails • Emphasis on “core” locations with attractive long-term fundamentals • Limiting new investment in tertiary locations with a renewed focus on move-up and resort lifestyle positions • We seek to optimize the level of controlled lots to improve capital efficiency and mitigate risk • Selective use of seller financing, joint ventures, option takedowns and land banking • Targeting controlled share of at least 65% Homebuilding lot supply Years of supply 3.5 3.5 3.0 2.8 2.8 5.6 5.9 6.3 6.6 6.1 2021 2022 2023 2024 2025 Owned Controlled Based on trailing-twelve month closings 49% 51% 53% 57% 54% 51% 49% 47% 43% 46% 74,794 74,787 72,362 86,153 78,835 2021 2022 2023 2024 2025 Owned Controlled
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14 Online reservations are driving improved sales conversions as consumer adoption grows 0% 10% 20% 30% 40% 50% 60% 70% 2020 2021 2022 2023 2024 2025 Reservation-to-sales conversion rate Sales contribution
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15 45+ Owned & controlled Yardly communities $3B Land banking capacity dedicated to Yardly’s expansion Our growing Build-to-Rent business develops horizontal apartment communities designed to cater to consumers seeking an alternative to traditional multi-family rentals. 5 to 7 asset dispositions expected in 2025 Data as of most recent quarter. Nine markets with Yardly operations
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16 9.8% 9.9% 9.5% 2023 2024 2025 $7.4 $8.2 $8.1 2023 2024 2025 11,495 12,896 12,997 2023 2024 2025 A track record of translating growth into financial performance Home closings 23.9% 24.4% 22.5% 2023 2024 2025 Total revenue ($bn) Home closings gross margin Net income ($mm) Stockholders’ equity ($bn) $5.3 $5.9 $6.3 2023 2024 2025 $769 $883 $783 2023 2024 2025 SG&A ratio $7.4
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17 17 Efficiently investing in our core homebuilding operations The investment thesis for TMHC • Diversified portfolio serves homebuyer demand across the consumer spectrum, with a growing focus on move-up and resort lifestyle buyers • Substantial opportunity to gain share within existing footprint and adjacent markets • Proven track record of successful growth via organic investment and acquisitions Drive healthy returns and cash flow by executing balanced operating strategy • Manage sales pace and pricing community- by-community to optimize performance • Leverage our best-in-class financial services team to maximize value for homebuyers with effective incentive strategies • Capture overhead and operational efficiencies through innovative technology solutions Maintain balance sheet strength, support growth and drive returns • Returns-driven allocation framework prioritizes liquidity and balance sheet health with future growth opportunities • Strategic use of land financing tools to enhance capital efficiency, improve asset turns and mitigate risk • Seek to outperform the industry through full housing cycles with a focus on return on equity and shareholder value creation
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18 Appendix
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19 Dollars in millions, unless noted. Totals may not sum due to rounding. Historical operating data by region 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025 Net Sales Orders East 3,968 1,295 1,160 1,140 993 4,588 1,391 1,147 1,024 1,019 4,581 Central 2,725 904 815 747 784 3,250 867 731 602 599 2,799 West 4,137 1,487 1,136 943 844 4,410 1,116 855 842 881 3,694 TMHC 10,830 3,686 3,111 2,830 2,621 12,248 3,374 2,733 2,468 2,499 11,074 Homes Closed East 4,480 933 1,237 1,320 1,432 4,922 1,110 1,325 1,361 1,376 5,172 Central 3,143 832 864 932 924 3,552 883 925 749 843 3,400 West 3,872 966 1,099 1,142 1,215 4,422 1,055 1,090 1,214 1,066 4,425 TMHC 11,495 2,731 3,200 3,394 3,571 12,896 3,048 3,340 3,324 3,285 12,997 Home Closings Revenue East $2,619 $542 $691 $758 $836 $2,827 $626 $695 $740 $756 $2,817 Central $1,936 $472 $481 $516 $501 $1,969 $477 $482 $383 $438 $1,780 West $2,604 $622 $748 $755 $833 $2,959 $727 $789 $878 $764 $3,158 TMHC $7,159 $1,636 $1,920 $2,029 $2,170 $7,755 $1,830 $1,966 $2,001 $1,958 $7,755 Home Closings Gross Margin East 27.4% 27.0% 26.0% 27.3% 27.4% 26.9% 24.3% 22.2% 22.5% 22.1% 22.7% Central 25.4% 26.0% 25.3% 24.6% 22.3% 24.5% 24.3% 21.9% 21.5% 23.3% 22.8% West 19.1% 19.9% 20.8% 22.5% 23.7% 21.9% 23.5% 22.7% 22.1% 20.6% 22.2% TMHC 23.9% 24.0% 23.8% 24.8% 24.8% 24.4% 24.0% 22.3% 22.1% 21.8% 22.5% Sales Order Backlog East 2,071 2,433 2,356 2,176 1,737 1,737 2,018 1,840 1,503 1,146 1,146 Central 1,299 1,371 1,423 1,238 1,098 1,098 1,082 888 741 497 497 West 1,919 2,440 2,477 2,278 1,907 1,907 1,968 1,733 1,361 1,176 1,176 TMHC 5,289 6,244 6,256 5,692 4,742 4,742 5,068 4,461 3,605 2,819 2,819 Backlog Value East $1,480 $1,715 $1,641 $1,494 $1,191 $1,191 $1,286 $1,180 $966 $747 $747 Central $864 $871 $875 $758 $669 $669 $640 $514 $424 $287 $287 West $1,300 $1,662 $1,682 $1,578 $1,333 $1,333 $1,435 $1,245 $948 $822 $822 TMHC $3,645 $4,248 $4,198 $3,830 $3,192 $3,192 $3,361 $2,939 $2,338 $1,857 $1,857
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20 Reconciliation of Non-GAAP Financial Measures Three Months Ended December 31, Twelve Months Ended December 31, (Dollars in thousands) 2025 2024 2025 2024 Home closings revenue $ 1,958,357 $ 2,169,703 $ 7,755,434 $ 7,755,219 Cost of home closings 1,531,510 1,632,003 6,008,007 5,863,743 Home closings gross margin $ 426,847 $ 537,700 $ 1,747,427 $ 1,891,476 Inventory impairment charges — 2,711 28,821 5,036 Warranty adjustment charges $ — $ 592 $ 5,596 $ 3,656 Adjusted home closings gross margin $ 426,847 $ 541,003 $ 1,781,844 $ 1,900,168 Home closings gross margin as a percentage of home closings revenue 21.8% 24.8% 22.5% 24.4% Adjusted home closings gross margin as a percentage of home closings revenue 21.8% 24.9% 23.0% 24.5% Three Months Ended December 31, Twelve Months Ended December 31, (Dollars in thousands, except per share data) 2025 2024 2025 2024 Net income $ 174,016 $ 242,453 $ 782,500 $ 883,309 Legal reserves or settlements — 17,392 — 23,682 Real estate impairment charges — 20,530 28,821 29,637 Pre-acquisition abandonment charges 4,905 6,545 14,791 9,453 Warranty adjustment charges — 592 5,596 3,656 Loss on extinguishment of debt, net 13,324 — 13,324 — Tax impact due to above non-GAAP reconciling items (4,058) (9,282) (15,049) (15,488) Adjusted net income $ 188,187 $ 278,230 $ 829,983 $ 934,249 Basic weighted average number of shares 97,106 103,189 99,069 104,813 Adjusted earnings per common share - Basic $ 1.94 $ 2.70 $ 8.38 $ 8.91 Diluted weighted average number of shares 98,656 105,218 100,707 106,846 Adjusted earnings per common share - Diluted $ 1.91 $ 2.64 $ 8.24 $ 8.74
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21 Reconciliation of Non-GAAP Financial Measures (Dollars in thousands) 2020 2021 2022 2023 2024 2025 Total debt $2,928,395 $3,302,124 $2,483,861 $2,017,102 $2,120,483 $2,291,107 Plus: unamortized debt issuance cost, net (2,365) (2,322) 10,767 8,375 6,616 11,667 Less: mortgage warehouse facilities borrowings (127,289) (413,887) (306,072) (153,464) (174,460) (82,605) Total homebuilding debt $2,798,741 $2,885,915 $2,188,556 $1,872,013 $1,952,639 $2,220,169 Total stockholders' equity 3,593,750 3,970,982 4,646,859 5,332,286 5,878,180 6,309,286 Total capitalization $6,392,491 $6,856,897 $6,835,415 $7,204,299 $7,830,819 $8,529,458 Total homebuilding debt to capitalization ratio 43.8% 42.1% 32.0% 26.0% 24.9% 26.0% Total homebuilding debt $2,798,741 $2,885,915 $2,188,556 $1,872,013 $1,952,639 $2,220,169 Less: cash and cash equivalents (532,843) (832,821) (724,488) (798,568) (487,151) (850,037) Net homebuilding debt $2,265,898 $2,053,094 $1,464,068 $1,073,445 $1,465,488 $1,370,132 Total stockholders' equity $3,593,750 $3,970,982 $4,646,859 $5,332,286 $5,878,180 $6,309,289 Total capitalization $5,859,648 $6,024,076 $6,110,927 $6,405,731 $7,343,668 $7,679,421 Net homebuilding debt to capitalization ratio 38.7% 34.1% 24.0% 16.8% 20.0% 17.8% As of December 31,
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22 In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), we provide our investors with supplemental information relating to: (i) adjusted net income and adjusted earnings per common share, (ii) adjusted home closings gross margin and (iii) net homebuilding debt to capitalization ratio. Adjusted net income and adjusted earnings per common share are non-GAAP financial measures that reflect the net income/(loss) available to the Company excluding, to the extent applicable in a given period, the impact of real estate and inventory impairment charges, impairment of investment in unconsolidated entities, pre-acquisition abandonment charges, unique and unusual warranty charges, gains/losses on land transfers to joint ventures, extinguishment of debt, net, and legal reserves or settlements that the Company deems not to be in the ordinary course of business and in the case of adjusted net income and adjusted earnings per common share, the tax impact due to such items. Adjusted home closings gross margin is a non-GAAP financial measure calculated as GAAP home closings gross margin (which is inclusive of capitalized interest), excluding inventory impairment charges and unique and unusual warranty charges. Net homebuilding debt to capitalization ratio is a non-GAAP financial measure we calculate by dividing (i) total debt, plus unamortized debt issuance cost/(premium), net, and less mortgage warehouse facilities borrowings, net of unrestricted cash and cash equivalents (“net homebuilding debt”), by (ii) total capitalization (the sum of net homebuilding debt and total stockholders’ equity). Management uses these non-GAAP financial measures to evaluate our performance on a consolidated basis, as well as the performance of our segments, and to set targets for performance-based compensation. We also use the net homebuilding debt to total capitalization ratio as an indicator of overall financial leverage and to evaluate our performance against other companies in the homebuilding industry. In the future, we may include additional adjustments in the above-described non-GAAP financial measures to the extent we deem them appropriate and useful to management and investors. We believe that adjusted net income and adjusted earnings per common share are useful for investors in order to allow them to evaluate our operations without the effects of various items we do not believe are characteristic of our ongoing operations or performance and also because such metrics assist both investors and management in analyzing and benchmarking the performance and value of our business. Because we use the net homebuilding debt to total capitalization ratio to evaluate our performance against other companies in the homebuilding industry, we believe this measure is also relevant and useful to investors for that reason. We believe that adjusted home closings gross margin is useful to investors because it allows investors to evaluate the performance of our homebuilding operations without the varying effects of items or transactions we do not believe are characteristic of our ongoing operations or performance. These non-GAAP financial measures should be considered in addition to, rather than as a substitute for, the comparable U.S. GAAP financial measures of our operating performance or liquidity. Although other companies in the homebuilding industry may report similar information, their definitions may differ. We urge investors to understand the methods used by other companies to calculate similarly-titled non-GAAP financial measures before comparing their measures to ours. A reconciliation of these measures to the comparable GAAP measures is presented above. For purposes of our presentation of our non-GAAP financial measures for the three and twelve months ended December 30, 2024, such measures have been recast to include certain adjustments being presented in the three and twelve months ended December 31, 2025 that were previously deemed immaterial in the prior period. Reconciliation of non-GAAP financial measures
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23 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 matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words ““anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “will,” “can,” “could,” “might,” “should” and similar expressions identify forward-looking statements, including statements related to expected financial, operating and performance results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future. Such risks, uncertainties and other factors include, among other things: inflation or deflation; changes in general and local economic conditions; slowdowns or severe downturns in the housing market; homebuyers’ ability to obtain suitable financing; increases in interest rates, taxes or government fees; shortages in, disruptions of and cost of labor; higher cancellation rates of existing agreements of sale; competition in our industry; any increase in unemployment or underemployment; the seasonality of our business; the physical impacts of climate change and the increased focus by third-parties on sustainability issues; our ability to obtain additional performance, payment and completion surety bonds and letters of credit; significant home warranty and construction defect claims; our reliance on subcontractors; failure to manage land acquisitions, inventory and development and construction processes; failure to develop and maintain relationships with suitable land banks; availability of land and lots at competitive prices; decreases in the market value of our land inventory; new or changing government regulations, policy initiatives and legal challenges; our compliance with environmental laws and regulations regarding climate change; our ability to sell mortgages we originate and claims on loans sold to third parties; governmental regulation applicable to our financial services and title services business; the loss of any of our important commercial lender relationships; our ability to use deferred tax assets; raw materials and building supply shortages and price fluctuations, including as a result of tariffs; our concentration of significant operations in certain geographic areas; risks associated with our unconsolidated joint venture arrangements; information technology failures and data security breaches; costs to engage in and the success of future growth or expansion of our operations or acquisitions or disposals of businesses; costs associated with our defined benefit and defined contribution pension schemes; damages associated with any major health and safety incident; our ownership, leasing or occupation of land and the use of hazardous materials; existing or future litigation, arbitration or other claims; negative publicity or poor relations with the residents of our communities; failure to recruit, retain and develop highly skilled, competent people; utility and resource shortages or rate fluctuations; constriction of the capital markets; risks related to instability in the banking system; risks associated with civil unrest, acts of terrorism, threats to national security, the conflicts in Eastern Europe and the Middle East and other geopolitical events; the scale and scope of current and future public health events, including pandemics and epidemics; any failure of lawmakers to agree on a budget or appropriation legislation to fund the federal government’s operations (also known as a government shutdown), and financial markets’ and businesses’ reactions to any such failure; risks related to our substantial debt and the agreements governing such debt, including restrictive covenants contained in such agreements; our ability to access the capital markets; the risks associated with maintaining effective internal controls over financial reporting; provisions in our charter and bylaws that may delay or prevent an acquisition by a third party; and our ability to effectively manage our expanded operations. In addition, other such risks and uncertainties may be found in our most recent annual report on Form 10-K and our subsequent quarterly reports filed with the Securities and Exchange Commission (SEC) as such factors may be updated from time to time in our periodic filings with the SEC. We undertake no duty to update any forward-looking statement, whether as a result of new information, future events or changes in our expectations, except as required by applicable law. Forward-looking statements Investor relations contact Mackenzie Aron Vice President Investor Relations investor@taylormorrison.com (407) 906-6262