Building on Strategic Growth

Building on strategic growth Building on strategic growth

From several homes built in suburban Philadelphia in 1967 to more than 130,000 homes sold to date, Toll Brothers has a long track record of growth through geographic expansion, product diversification, and innovation.

When Toll Brothers went public in 1986, we were a regional builder in the metro Philadelphia/Central New Jersey area. By 1990, our footprint stretched from Baltimore to Boston. Our transition to a national builder began with our expansion into California and Texas in the early 1990s. Today, we operate in over 50 markets in 24 states and Washington, DC. We continue to grow in our current markets and are expanding into new markets through establishing our own operations and acquiring home builders.

Similarly, we have expanded our product lines and customer base. At the start, we focused on building move-up single-family and attached homes for growing families. We entered the active-adult market in the late 1990s, recognizing an interest among 55+ buyers for luxury communities with features such as first-floor primary bedroom suites and resort-style amenities. In the early 2000s, we expanded into the development of rental apartments—now a nationwide urban and suburban platform—and the urban mid- and high-rise condominium market.

More recently, we have moved to attract those customers, particularly millennials, who desire the luxury and quality of the Toll Brothers brand but at a more affordable price point.

As buyers reflect on the spaces within their homes and determine how their homes can better fit their lives, we have continued to innovate and build upon our established offerings. In response to surging interest in personalized floor plans, we have designed options to suit individual home buyers' unique needs: from living areas that reflect how families live, to productive workspaces for professionals and students, to dynamic designs that blend indoor and outdoor living.

Over the years, we have expanded into more markets with more team members and more product offerings, but our focus has remained steadfast: delight the buyer by operating from a place of excellence. With well-located land holdings, distinctive luxury home designs that appeal to a broad range of home seekers, and a unique build-to-order model that meets the needs of modern buyers looking for a personalized space to suit their lifestyle, we are strategically positioned for continued growth.

Corporate Overview

luxury homes and communities

Founded in 1967 | National presence in the luxury market: operations in over 50 markets in 24 states and Washington, DC | Selling from 317 communities | High-volume home production of extensively personalized homes | Average delivered home price of $816,500; average price in backlog of $818,200

industry-leading reputation and brand

America's Luxury Home Builder | NYSE-listed (TOL) since 1986 | 4th largest United States home builder by revenues | Toll Brothers Active Adult: luxury homes for active adults including 55+ buyers | Toll Brothers City Living®: luxury mid- and high-rise urban for-sale communities | Toll Brothers Apartment Living and Toll Brothers Campus Living®: luxury for-rent urban, suburban, and student housing communities

ancillary businesses

TBI Mortgage and Westminster Title, serving 45% and 75% of Toll Brothers customers, respectively, in FY 2020 | Land banking, lending, and joint venture financing services via Gibraltar Real Estate Capital | Integrated home automation and home security via TBI Smart Home Solutions | High-volume home production of extensively personalized homes | Toll Brothers Insurance Agency and Toll Landscape

financial strength

Strong corporate credit ratings: Standard & Poors' (BB+), Moody's (Ba1), and Fitch (BBB-) | Liquidity of $3.2 billion: $1.4 billion in cash and $1.8 billion available under our $1.905 billion, 23-bank, 5-year revolving credit facility | $800 million, 12-bank, 5-year term loan | Over $15.8 billion in corporate and joint venture financing transactions completed in the last 5 years | Debt-to-capital ratio of 44.8%; net debt-to-capital ratio† of 33.3% | Laddered long-term public and bank debt maturities with a weighted average of 5.1 years remaining | Focus on driving return on equity through more capital-efficient land buying and other strategies

diverse product lines

Luxury move-up homes | Millennial-focused affordable luxury homes | Elegant empty-nester, active-adult, and second homes | Urban low-, mid-, and high-rise condos | Multi-generational homes | Multi-product master-planned communities | Suburban high-density communities | Resort-style golf and country club living | Urban and suburban rental communities

awards

National Builder of the Year, Builder magazine | Two-time Builder of the Year, Professional Builder magazine | Six-time World's Most Admired Home Building Company,* FORTUNE Magazine | Induction of founders Robert and Bruce Toll into the Builder Hall of Fame

Information for and as of FYE October 31, 2020, unless otherwise noted.

*From FORTUNE Magazine, February 1, 2020 ©2020 Fortune Media IP Limited. FORTUNE and The World's Most Admired Companies are registered trademarks of Fortune Media IP Limited and are used under license.

§Click here to see "Reconciliation of Non-GAAP Measures" on page 82 of the Toll Brothers 2020 Annual Report for more information on the calculation of the company's net debt-to-capital ratio.

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