Ivy Lynne Zelman

Ivy Zelman of Zelman & Associates asked for the rationale behind preferring land options with underlying land sellers over land bankers. She also questioned if PulteGroup is successfully retrading existing land options for better terms and inquired about the potential cost impact from doubling Canadian lumber tariffs.

Answer

President & CEO Ryan Marshall explained that direct deals with land sellers offer a more diversified risk profile and better price execution, viewing land bankers as a tool to increase the overall option percentage from around 50% to their 70% target. He confirmed they are actively retrading deals where appropriate, seeking either better pricing or more time. EVP & CFO James Ossowski noted that 20-25% of their lumber is from Canada, implying a tariff increase would have a manageable, not catastrophic, impact.

Ivy Lynne Zelman questioned why full-year guidance remained unchanged despite the market becoming 'mixed,' and asked for a quantification of the remaining land that was purchased pre-COVID.

Answer

Executive Chairman Douglas Yearley explained that the initial guidance in December was already cautious and that better-than-expected spec pricing and a favorable mix of luxury homes in the second half support the forecast. CFO Martin Connor specified that approximately 30% of the current land bank was priced pre-COVID (using a December 2020 cutoff).