Tucker Andersen's questions to Pure Cycle Corp (PCYO) leadership • Q3 2024
Question
Tucker Andersen inquired about several strategic areas, including the trajectory of lot sale prices, the mix of housing types being developed, the potential for adding new homebuilders, and the management strategy for the growing single-family rental portfolio. He also asked about the possibility of acquiring new land development projects and the company's plans to address the perceived undervaluation of its stock.
Answer
Executive Mark Harding confirmed that lot prices are expected to continue rising, balanced carefully with homebuilder margins and homebuyer affordability. He noted the diverse housing mix (detached, duplex, townhomes) serves a broader entry-level market and that they may add more builders as development scales. The rental portfolio is managed entirely in-house to maximize returns, and while they are actively seeking new land acquisition opportunities, they remain disciplined. To address the stock price, Harding stated the company is executing its share repurchase program and continuously evaluates all options, including IR outreach and a potential future dividend policy.