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Chicago Tribune
a day ago
- Business
- Chicago Tribune
Winfield housing base expected to grow with Grand Ridge, other new homes
Available new houses in Winfield will soon increase by 44 with proposals for some 342 additional residential possibilities in the future. The Winfield Plan Commission on Thursday gave secondary plat approval to Phase 3 of Grand Ridge subdivision located at 10317 Grand Boulevard. Those plans include the building of 44 new homes, Providence Real Estate Development president John Carroll said. Planners also gave positive feedback but held discussion only, on proposals for 146 new homes to be built by Lennar Corp. at 5510 E. 117th Ave. and 196 new homes to be built by Diamond Peak Homes at 11500 Randolph St. The town of Winfield, incorporated in 1993, continues to grow given the increased housing stock being constructed. The population was 2,298 in 2000 and in 2020, according to the 2020 U.S. Census, jumped to 7,000. A recent census population estimate put the current figure at 8,557. A snapshot of the town, as presented by the Veridus Group of Indianapolis in 2023, showed that Winfield increased its population by 212% between 2000 and 2020 with it ranking ninth-largest in growth rate for a town or city in Indiana. The plan commission, in addition to granting secondary plat approval, also approved a $1.5 million performance bond for Phase 3. Carroll said plans are to proceed with building the homes, in Phase 3, this month with 28 termed Signature and 16 termed Sterling. Grand Ridge subdivision, initially approved by the Winfield Town Council three years ago, is located on 87 acres off Grand Boulevard and south of E. 103rd Avenue. Plans by developers are to build a total of 134 traditional or Signature homes between 2,000-3,000 square feet and 55 maintenance-free, age-targeted cottages or Sterling homes between 1,600-2,000 square feet, Doug Ehens, vice president of Providence Real Estate said at a previous meeting. The cost to build the traditional homes, a mixture of two-story and ranch-style, would be in the low- to mid-$400,000 range. The cost to build the age-targeted cottages would be in the mid-to upper-$300,000 range, Ehens said. In other business, Todd Kleven presented plans for a residential subdivision called Heron Landing to be located at the northwest corner of 117th Avenue and Gibson Street. Kleven serves as director of land acquisition for Lennar Corp. based in Schaumburg, Illinois. The subdivision would include some 146 home sites with an average house size approximately 2,500 square feet and average cost in the $500,000 range. Kleven said Lennar Corp. developed the Aylesworth subdivision, with some 515 homes when completed, and was responsible for being in a partnership with the town when it came to paying for the completed roundabout on 109th Avenue. In the same way, Kleven said Lennar would help the town when it came to completing the roundabout planned on 117th Avenue. Kleven said he is hopeful that other developers, south of 117th Avenue, might also contribute to the cost of the roundabout. 'We have no problem taking the lead on the roundabout,' he said. Kleven said that there would be a way to work around traffic issues while the roundabout is undergoing construction by building a temporary road. 'So we aren't shutting down a major thoroughfare,' he said. Plan Commission President Jon Derwinski, who also serves on the Winfield Town Council, said he is concerned about the additional traffic the subdivision will bring to the already trafficked roadway. Planners agreed that a traffic study would be part of future presentations and a traffic engineer would need to provide a report. 'There's a ton of school traffic and you'd have to work around that,' Derwinski said. Kleven said he plans to return to the Plan Commission next month. Plans for a yet-to-be-named subdivision at 11500 Randolph St. were presented by Michael Herbers, director of land acquisition and development for Diamond Peak Homes. The proposed subdivision is located to the west of Jerry Ross Elementary School. Plans are to build 196 homes in the 2,500 square feet to 3,000 square feet range, priced in the $500,000s, with some at $650,000. Plan Commission member Tim Clayton, who also serves on the Winfield Town Council, said the elephant in the room is the traffic, especially at the start of the school day and at the end of the school day, since the subdivision would be right across the street from Jerry Ross. Debbra Gritters, who serves as the Winfield Assistant Town Planner, said that in her mom role, she'd like to see developers have a pedestrian or loading box area for school-age children living in the subdivision. 'I highly recommend getting a hold of school officials. This will definitely affect all Winfield residents and Jerry Ross students,' Clayton said. Overall feedback from planners was positive. 'You are on the right track,' Derwinski said.
Yahoo
22-03-2025
- Business
- Yahoo
Lennar Corp (LEN) Q1 2025 Earnings Call Highlights: Navigating Market Challenges with Strategic ...
Average Sales Price: Declined to $408,000, 1% lower than last year. Homes Started: 17,651 homes. Homes Delivered: 17,834 homes. Homes Sold: 18,355 homes. Sales Incentives: Increased to approximately 13%. Gross Margin: Reduced to 18.7%. SG&A: Came in at 8.5%. Net Margin: 10.2%. Community Count: Increased from 1,447 to 1,584 communities. Cash on Book: $2.3 billion. Debt-to-Total Capital Ratio: 8.9%. Share Repurchase: 5.2 million shares for $703 million. Liquidity: Approximately $5.3 billion. Homesites Owned: 13,000 homesites. Homesites Controlled: 533,000 homesites. Inventory Turn: 1.7 times. Return on Inventory: Almost 30%. Book Value Per Share: About $86. Q2 New Orders Guidance: 22,500 to 23,500 homes. Q2 Deliveries Guidance: 19,500 to 20,500 homes. Q2 Average Sales Price Guidance: $390,000 to $400,000. Q2 Gross Margin Guidance: Approximately 18%. Q2 SG&A Guidance: 8% to 8.2%. Q2 EPS Guidance: Approximately $1.80 to $2 per share. Warning! GuruFocus has detected 2 Warning Signs with BFRI. Release Date: March 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lennar Corp (NYSE:LEN) successfully completed the Moro spin-off and Rausch Coleman acquisition, supporting their transition to an asset-light land-light model. The company maintained a strong balance sheet with $2.3 billion in cash and an 8.9% debt-to-total capital ratio. Lennar Corp (NYSE:LEN) achieved a sales pace of 4.1 homes per community per month, aligning with their target and demonstrating operational efficiency. Construction costs decreased by 2.5% year-over-year, reaching the lowest level since Q3 2021, indicating effective cost management. The company repurchased 5.2 million shares for $703 million, demonstrating a commitment to returning capital to shareholders. The macroeconomic environment remains challenging with high mortgage interest rates, impacting housing market demand. Lennar Corp (NYSE:LEN) experienced a decline in average sales price to $408,000, 1% lower than the previous year. Sales incentives rose to approximately 13%, significantly impacting gross margins, which fell to 18.7%. The company faces ongoing pressure on margins due to the need for incentives to maintain sales volume. Consumer confidence and affordability issues continue to limit actionable demand in the housing market. Q: What is Lennar's view on the normalized operating margin and the path to achieve it? A: Stuart Miller, Executive Chairman and Co-CEO, explained that Lennar is focused on improving efficiencies across all business elements, especially after the Millrose spin-off. The current high level of incentives is temporary, and the company expects to achieve a significantly higher operating margin once these incentives normalize. Diane Bessette, CFO, added that historically, SG&A was around 7% and corporate G&A around 1.5%, suggesting room for improvement from current levels. Q: How does Lennar determine its sales pace, and what if current demand levels are the new normal? A: Stuart Miller stated that Lennar assesses demand at the community level and believes the current market is undersupplied due to years of underproduction. The company is prepared to adjust its production levels quickly if necessary, typically within a quarter or two, as market conditions evolve. Q: Is Lennar underwriting new land acquisitions to current incentive levels, and can margins improve without incentives returning to historical levels? A: Stuart Miller confirmed that Lennar is strategically turning over land inventory to align with current market conditions. Fred Rothman, COO, added that the company is patient and strategic in land acquisitions, underwriting them to current incentive levels while aiming for higher margins as land costs adjust. Q: How does Lennar respond to concerns about increased cyclicality in margins due to its even flow strategy? A: Stuart Miller emphasized that Lennar's strategy is to work through assets at lower margins rather than walking away from deposits. The company believes that maintaining production levels and turning land into cash is more beneficial in the long run, even in a challenging market. Q: What is the impact of the Millrose transaction on Lennar's cash flow and leverage strategy? A: Stuart Miller noted that the Millrose transaction is part of Lennar's transition to an asset-light model, which will eventually lead to cash generation approximately equal to earnings. Diane Bessette highlighted that 2025 is a transition year, but the asset-light model is expected to enhance shareholder returns through increased cash flow and stock buybacks. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
22-03-2025
- Business
- Yahoo
Lennar posts lower quarterly profit on sustained market weakness
Lennar Corp reported lower first-quarter profit on Thursday, as high mortgage rates and house prices deterred potential buyers, sending shares down 4% after the bell. "While demand remains strong, persistently higher interest rates and inflation, combined with a downturn in consumer confidence and a limited supply of affordable homes, made it increasingly difficult for consumers to access homeownership," said co-CEO Stuart Miller. For the first quarter ended February 28, Lennar reported a decline in average sales price to $408,000, 1% lower than last year, reflecting continued weakness in the market. It also reported home sales gross margins of 18.7% in the first quarter, below its forecast range of 19.0% to 19.25%. The lack of affordable entry-level housing for families has consistently been a major challenge in the U.S. economy and has routinely pushed potential first-time homebuyers out of the market. Homebuilders have ramped up incentives such as interest rate buydowns and price adjustments to attract potential buyers and avert inventory buildup, which has reduced their margins. Including losses of $62.5 million incurred on technology investments, Lennar posted a quarterly profit of $1.96 per share, compared with $2.57 a year ago. The second-largest U.S. homebuilder reported first-quarter revenue of $7.6 billion, a 5% rise from the previous year, surpassing analysts' estimates of $7.43 billion, according to data compiled by LSEG. The Miami-based company delivered 17,834 homes in the first quarter, an increase from 16,798 units in the same period last year.
Reuters
20-03-2025
- Business
- Reuters
Lennar posts lower quarterly profit on sustained market weakness
March 20 - Lennar Corp (LEN.N), opens new tab reported lower first-quarter profit on Thursday, as high mortgage rates and house prices deterred potential buyers, sending shares down 4% after the bell. "While demand remains strong, persistently higher interest rates and inflation, combined with a downturn in consumer confidence and a limited supply of affordable homes, made it increasingly difficult for consumers to access homeownership," said co-CEO Stuart Miller. For the first quarter ended February 28, Lennar reported a decline in average sales price to $408,000, 1% lower than last year, reflecting continued weakness in the market. It also reported home sales gross margins of 18.7% in the first quarter, below its forecast range of 19.0% to 19.25%. The lack of affordable entry-level housing for families has consistently been a major challenge in the U.S. economy and has routinely pushed potential first-time homebuyers out of the market. Homebuilders have ramped up incentives such as interest rate buydowns and price adjustments to attract potential buyers and avert inventory buildup, which has reduced their margins. Including losses of $62.5 million incurred on technology investments, Lennar posted a quarterly profit of $1.96 per share, compared with $2.57 a year ago. The second-largest U.S. homebuilder reported first-quarter revenue of $7.6 billion, a 5% rise from the previous year, surpassing analysts' estimates of $7.43 billion, according to data compiled by LSEG. The Miami-based company delivered 17,834 homes in the first quarter, an increase from 16,798 units in the same period last year.
