Schertz-Cibolo-Universal City ISD

District Housing

Activity Report 4Q 2016

Solutions Through Demographics

2

GREATER SAN ANTONIO NEW HOME STARTS, CLOSINGS,

& LOT DELIVERIES

Year-Over-Year Change

Annual Starts +2.4%

Annual Closings +5.0%

Annual Starts: 10,254

Annual Closings: 10,064

Start = Foundation started

Closing = Occupied home

Greater San Antonio homebuilders produced another strong quarter of new home activity during

4Q16 with 2,297 starts and 2,266 closings

2016 marks the third consecutive year that the San Antonio new home market has produce more

than 10,000 starts

10,064 annual closings is a new record for the current housing cycle

Developers delivered 11,172 new single-family lots in 2016 (10.5% increase vs.2015 annual total)

Current Cycle

3

GROWTH DRIVERS: GREATER SAN ANTONIO ANNUAL JOB GROWTH(8 county MSA: Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendell, Medina, Wilson counties)

Source: Texas Workforce Commission Current Employment Survey (CES)

Unemployment Rates – Dec. 2016

San Antonio: 3.7%

Austin: 3.2%, DFW: 3.7%, Houston: 5.3%

Texas: 4.6%, US: 4.5%

Annual Job Growth =

+21,800 (+2.2% Y-o-Y)

4

S.C.U.C. ISD QUARTERLY NEW HOME CONSTRUCTION

Start = Foundation started Closing = Occupied home

Builders start 147 and close 173 new homes in the district during the 4th quarter

Starts 2011 2012 2013 2014 2015 2016 Closings 2011 2012 2013 2014 2015 2016

1Q 156 151 173 158 170 159 1Q 178 150 154 119 149 238

2Q 211 197 198 195 231 193 2Q 208 139 181 179 176 248

3Q 184 174 215 184 286 200 3Q 231 183 177 163 224 216

4Q 151 159 136 165 247 147 4Q 178 178 170 163 162 173

Total 702 681 722 702 934 699 Total 795 650 682 624 711 875

5

S.C.U.C. ISD ANNUAL NEW HOME CONSTRUCTION

Annual Starts: 699

Annual Closings: 875

Year-Over-Year Change

Annual Starts -25.2%

Annual Closings +23.1%

The district’s annual starts rate falls back to 699 at the end of 2016 (-25.2% Y-o-Y)

Annual closings climb to the highest level in 6 years (875 total in 2016)

Developers deliver 998 new lots in 2016

Start = Foundation started Closing = Occupied home

Rank District

Total Starts

1Q16-4Q16

Total Closings

1Q16-4Q16

1 Northside 3,494 3,472

2 Comal 1,647 1,661

3 Schertz-Cibolo-U.C. 699 875

4 Judson 801 688

5 Boerne 718 656

6 New Braunfels 607 563

7 North East 497 522

8 Medina Valley 458 454

9 Southwest 364 346

10 East Central 348 333

11 Seguin 130 141

6

GREATER SAN ANTONIO SCHOOL DISTRICT RANKINGS

BY NEW HOME CONSTRUCTION

• SCUC ISD continues

to rank 3rd in annual

new home closings

among all Greater

San Antonio school

districts

Start = Foundation started Closing = Occupied home

7

S.C.U.C. ISD NEW HOME CONSTRUCTION BY CITY

0

50

100

150

200

250

300

350

400

450

500

Cibolo Schertz Selma Converse St. Hedwig

364

221

94

19 1

409

287

127

51

1

Starts

Closings

1Q16-4Q16 District Closings: 47% Cibolo, 33% Schertz, 15% Selma, 6% Converse

Start = Foundation started Closing = Occupied home

1. Kensington Ranch (All) 132 Paschal/Schertz Wilder Schertz/Selma 2017

2. Turning Stone (All) 132 Cibolo Valley Schlather Cibolo 2019

3. Saratoga 93 Green Valley Schlather Cibolo 2021

4. Riata Terrace 71 Sippel Schlather Schertz 2020

5. The Crossvine 61 Rose Garden Jordan Schertz 2040

6. Landmark Pointe 60 Cibolo Valley Schlather Cibolo 2022

7. Willow Grove (All) 56 Rose Garden Wilder Schertz 2019

8. MacArthur Park 51 Rose Garden Jordan Converse 2016

9. Rhine Valley 43 Watts Wilder Schertz 2023

10. Saddle Creek Ranch 41 Cibolo Valley Schlather Cibolo 2024

11. Cibolo Vista (All) 41 Cibolo Valley Jordan Cibolo 2018

12. Heights of Cibolo 21 Cibolo Valley Schlather Cibolo 2021

13. Fairway Ridge 20 Sippel Schlather Schertz 2018

8

S.C.U.C. ISD TOP PRODUCING NEW HOME SUBDIVISIONS

Annual

Closings

1Q16-4Q16

Elementary

Attendance

Zone

4 of the top 8 producers are located on the west side of the district with 3

in the Rose Garden elementary attendance zone

5 of the top 12 producers are located in the Cibolo Valley ES zone

Intermediate

Attendance

ZoneCity

Projected

Build-out

9

NEW HOME ACTIVITY BY ELEMENTARY ZONE

• 34% of new homes occupied over

the past 12 months were located

in the Cibolo Valley ES zone

• Paschal, Schertz, and Rose Garden

zones (combined) produced 36% of

new home occupancies over the

past year

• Green Valley ES zone annual

closings climb to 111 units

10

NEW HOME ACTIVITY BY INTERMEDIATE ZONE

The Schlather zone continues to be the most active zone in the district with

51% of annual closings in 2016

11

NEW HOME ACTIVITY BY

JUNIOR HIGH/HIGH SCHOOL ZONE

More activity continues to shift back to the Dobie JH/Steele HS zones

12

SCHERTZ-CIBOLO-UNIVERSAL CITY ISD

RESIDENTIAL LOT INVENTORY

351 new lots delivered in 4Q 2016 including the 232 at Homestead

1,824 vacant developed lots remaining as of Dec. 30, 2016

515 future lots under development as of year-end 2016

7,032 future lots planned

13

NEW PROPOSED

RESIDENTIAL

DEVELOPMENTS

Subdivision Total Lots Attendance Zones City

Venado Crossing

500 Wiederstein/Jordan/Corbett/Clemens

Cibolo

Hallie’s Cove 147 Wiederstein/Jordan/Corbett/Clemens

Schertz

St. Hedwig /Abbot Rd. Tracts

874 Rose Garden/Jordan/Corbet

t/Clemens

St. Hedwig

14

AERIAL PHOTOS

DECEMBER 21, 2016

15

KENSINGTON RANCH

Schertz ES

Paschal ES

Green Valley ES

62 lots left to close (Schertz ES zone)

16

ESTATES AT MESA OAKS / MISTY WOODS /

BINDSEIL FARMS

Misty Woods – 36 lots (Paschal ES)

Bindseil Farms – 85 lots (Schertz ES zone)

Estates at Mesa Oaks – 56 lots (Paschal ES)

17

RHINE VALLEY

Corbett JH

Ray Corbett Dr.

Future Rose Garden ES Replacement site

18

THE CROSSVINE

Sedona

19

THE CROSSVINE

Sedona

20

SADDLE CREEK RANCH / HEIGHTS OF CIBOLO

21

LANDMARK POINTE

22

MESA AT TURNING STONE

Cibolo Valley ES

23

TURNING STONE

Cibolo Valley ES

___ lots under development

24

SARATOGA

25

HOMESTEAD

FutureSCUC ISD

School Site

SCUC ISD

Comal ISD

26

CYPRESS POINT

SCUC ISD

Comal ISD

27

DISTRICT NEW HOME OCCUPANCY FORECAST(Based on known projects as of 4Q 2016)

SCUC ISD poised to see an average of 745 new home

occupancies per year over the next five years

Annual Period = 4Q-3Q

In 4-5 years, more vacant land is likely to be developed and other currently unknown projects likely to come into play during this timeframe, keeping the rate of home sales from declining

District is averaging 0.74 students per new

home occupancy

S.C.U.C. ISD continues to see an average of

0.33 students per multi-family unit

28

DISTRICT ENROLLMENT PROJECTIONS (PK-12)4Q16 FORECAST

Actual Fall 2016 enrollment was 15,460 on 10/28/2016; Growth follows Low Forecast over the past 12 months

2.7% Annual Avg. Growth

2.0% Annual Avg. Growth

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Copyright 2017 School District Strategies.

Although School District Strategies (SDS) has used commercially reasonable efforts to obtain information from sources it believes to be reliable and accurate, SDS

does not guarantee the accuracy or completeness of such information. Information presented in this report represents SDS’s estimates as of the date of the report

and is subject to change without notice. This report is not intended as a recommendation or endorsement of any action taken by you or any third party in regard to

the subject matter of this report or any other real estate activity. SDS WILL HAVE NO LIABILITY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES,

INCLUDING (BUT NOT LIMITED TO) LOST PROFITS, OR DIMINUTION IN VALUE OF YOUR BUSINESS OR PROPERTY, ARISING FROM OR RELATING TO SDS’S SERVICES

HEREUNDER, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES AND WHETHER OR NOT SUCH DAMAGES ARE REASONABLE OR FORESEEABLE UNDER

THE APPLICABLE CIRCUMSTANCES. SDS’S LIABILITY ON ANY CLAIM OF ANY KIND, INCLUDING NEGLIGENCE, FOR ANY LOSS OR DAMAGE ARISING OUT OF, CONNECTED

WITH, OR RESULTING FROM THIS REPORT OR THE SERVICES PROVIDED BY SDS SHALL IN NO SINGLE CASE, OR IN THE AGGREGATE, EXCEED THE AMOUNTS ACTUALLY

PAID TO SDS IN CONNECTION WITH THE REPORT.

The following contingencies and limiting conditions are noted as fundamental assumptions that may affect the accuracy or validity of the analysis and conclusions set

forth in this report. Specifically, the parties assume: that the Dallas/Fort Worth metropolitan area, the State of Texas, and the nation as a whole will not suffer any

major economic shock during the time period of the forecast contained in this report; that general population levels will continue to increase at or above the rate

forecast; that the public and third party sources of statistical data and estimates used in this analysis are accurate and complete in all material respects, and that

such information is a reasonable resource for project planning purposes; the proposed real estate development projects described herein, when completed, will be

designed, promoted, and managed in a manner that will have an impact on the local market that is reasonably consistent with other similar projects in the past; and

that the recommendations set forth in this report will be acted upon within a reasonable period of time to preclude major changes in the factual conditions

evaluated.

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Suite 101

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