Green Brick Partners, Inc. (NASDAQ:GRBK) Q3 2019 Earnings Conference Call - Final Transcript
Nov 08, 2019 • 12:00 pm ET
James R. Brickman
8 takes a closer look at our growth story of annual revenue and the related investment in land and land development. And look at the chart, and you can see that the direct correlation between our growth and total lots owned and controlled with the resulting growth in the annual revenues. Over the last 12 months, we've grown our total revenues by 30% and our total lots owned and controlled by 14%.
I want to take -- thank the entire Green Brick team for their hard work and really great results this quarter. Next, Jed Dolson, our President of the Texas Region will discuss our growth drivers and our diversification.
Thanks, Jim. Green Brick is truly one of the best growth stories in the public homebuilder space. Take a look at Slide 7, labeled growth drivers. On a last 12 month basis, total revenues from Q3 of 2017 to Q3 of 2019 have grown 69% over that two-year period, but even more impressive is our setup for the future. Over the last two years, our backlog grew 94% to $320 million as of September 30th, 2019, which was almost a doubling of our 2017 backlog. During these last 24 months, we also increased our lots owned and controlled by 63% and grew the average number of selling communities by 53%.
Now let's focus on just the last 12 months ending September 30th, 2019. Over the last 12 months ending September 30th, 2019, we started 1,781 units, which represents a 24% increase versus the 12 months ending September 30th 2018. Notably after starting an average of 420 units per quarter from Q2 of 2018 through Q2 of 2019, we saw a spike of 535 units during Q3 of 2019. As of September 30th, 2019, we had 1,306 units under construction, an increase of 17% year-over-year from the end of 2018. So Green Brick has the backlog, the construction starts, the level of units under construction and the lot inventory to sustain further dynamic growth.
On Slide 10, we highlight the diversification of our product offerings. In 2018, we significantly increased our focus on townhome communities. Thanks to years of planning, land acquisition and development. In fact, we've grown our townhome revenues 41% over the last 24 months. Our robust single family growth of 88% in the past 24 months is highlighted by GHOs revenues of $110 million over the last 12 months, which were at a lower average sales price with their more affordable age-targeted product. Over this period, this has helped us maintain affordability while offering a high-quality product. Over the last two years our average sales price has risen by only 2.2% in total.
Slide 11 visually demonstrates that our range of homes and diversified homebuyer mix have grown our revenues and provided stable earnings by not concentrating on any one homebuyer segment. We now address five distinct consumer segments, which all experienced strong revenue growth into Q3 2019. Looking at the right side of the page, you can