Latest news with #homebuilding
Zawya
a day ago
- Business
- Zawya
MBRHE continues implementation of 'How to Build Your Home' program until end of 2025
Dubai, United Arab Emirates – The Mohammed Bin Rashid Housing Establishment (MBRHE) has marked a new milestone in its efforts to empower Emirati citizens in their homebuilding journey by graduating a new batch of participants from the 'How to Build Your Home' program. The initiative aims to enhance customer awareness and enable them to make informed and strategic decisions throughout every stage of the housing construction process. Delivered in collaboration with the New Economy Academy, the program is a comprehensive educational initiative designed to address the needs of housing service beneficiaries. It focuses on four key pillars—legal, engineering, financial, and technological—covering essential topics such as customer rights and responsibilities, consultant and contractor selection, contracting phases, effective cost management, and exposure to the latest sustainable construction practices and technologies. Launched in early 2025 as part of MBRHE's 'Community Year' initiatives, the program supports citizens through all stages of their housing journey—from initial planning, through design and construction, to handover and occupancy. This reflects the organization's vision to provide leading and sustainable housing services that ensure quality and enhance family stability in the UAE. Commenting on the initiative, His Excellency Mohammed Hassan Al Shehhi, Acting CEO, stated: 'The 'How to Build Your Home' program is a strategic step toward supporting citizens on their path to home ownership in a thoughtful and sustainable way. At MBRHE, we are committed to being true partners throughout this journey by offering specialized training that addresses the essential elements of building a complete home that meets the aspirations of Emirati families, while promoting a culture of quality and accountability in execution.' The program features interactive workshops and practical modules that highlight best practices in residential construction and encourage participants to benefit from local expertise and real-life case studies. It also includes the distribution of a comprehensive digital handbook titled 'How to Build Your Home,' developed by MBRHE's engineers and specialists, as a practical reference covering every stage from planning to maintenance. MBRHE has confirmed that the program will continue to accept new participant batches until the end of 2025, following an approved schedule to ensure that the greatest number of eligible citizens benefit from this important awareness initiative. For more information about the program and other awareness initiatives, please visit: About Mohammed Bin Rashid Housing Establishment: MBRHE is a government entity dedicated to delivering proactive and sustainable housing services to citizens through flexible policies, strategic partnerships, and a commitment to innovation and digital transformation, in alignment with Dubai's future vision. Media Contact: Khalid Mohammed Al Bannai Head of Communications Mohammed Bin Rashid Housing Establishment Email: kalbannai@ or Ghada Yousif Abdulla Communications Specialist Mohammed Bin Rashid Housing Establishment Email: gabdulla@
Yahoo
a day ago
- Business
- Yahoo
Muffley Homes CEO back in court, faces felony charge related to business practice.
The Brief High-end Atlanta home builder Mikel Muffley appeared in court, waiving his arraignment hearing on the felony charge of "conversion of payments for real property improvements." Some of Muffley's clients claim that they used the money they paid for their home build on other projects. The case has been in limbo for more than two years due to a backlog at the Fulton County courthouse. ATLANTA - Muffley Homes CEO Mikel Muffley waived his arraignment hearing on the felony charge of "conversion of payments for real property improvements." The owner of the high-end home-building group was arrested in 2022 after clients claimed in court he used the money for their home build on other client projects. The case has been dragged on because of a case backlog at the Fulton County courthouse. He is expected back in court this summer. His company has since gone into bankruptcy protection, but he is still listed as a real estate agent with the Georgia Real Estate Commission. MORE: Experts say homeowner's dream house is a construction mess The backstory The last time we saw Mikel Muffley in court was November 2022. And it was unusual. The builder of some of Atlanta's more well-to-do was charged criminally with conversion of payments. His clients claimed they paid him for a home build, but their money didn't always go to their construction. Then the case didn't move much until May 2025. Muffley appeared in Fulton County Superior Court from a virtual location. His attorney spoke for him in person at his arraignment hearing. Raymond Guidice simply said, "Waive formal arraignment." And that was that. He passed on a public plea and to have criminal charges officially read to the court. But the last time the FOX I-Team saw him in a courtroom, he talked a lot. "Been in Atlanta 22 years," he told the judge in November 2022. "I've been in real estate the entire time." According to state records, Muffley is still a state-licensed real estate agent, but his company, Muffley Homes, has been administratively dissolved. At the time, it was advertised as "master luxury builders" offering "full design build services." "I'm not an accountant. I'm not a licensed builder. What I did was make an attempt to put all of the pieces of the puzzle together. I count on other people to do what I hire them to do," he said in court, explaining his business model. He would buy the lots, hire the architects, facilitate the financing, then hire the contractors. He dealt with high-end buyers with high-end expectations. "Because we had so many issues with past builders, what was to a create a more transparent system," he said. The other side But how he ran his program got him arrested at the end of that hearing. His client Kasey Asarch, at the time, testified to fuzzy accounting, not transparency."Our account was drained and emptied by the time we terminated our contract," she told the judge. Between the pandemic backlog and Fulton County's busy docket, it's been two and a half years since his first court appearance. But in that time, there were two other big developments. In March 2024, he sued his one-time bookkeeper who testified for the prosecution. "The money was taken out of the Asarch job account and the money was placed in another job account," Sharon Adams testified. Muffley claimed she stole his personal property, downloaded files, took trade secrets, mishandled duties, and more, causing him to lose clients. He also accused her of defamation. There are no court records showing she defended herself, so the judge ordered a default judgment. Mikel Muffley was awarded $3.2 million. The judgment, it reads, is "based upon the evidence heard and for good cause shown." The Fox 5 I-Team reached out to Ms. Adams for comment but didn't hear back What's next A month later, Muffley's company, MDM Opportunity Ventures, filed for bankruptcy. The Asarches are among 45 listed creditors. Muffley is expected back in court in September. The Source The I-Team attended court hearings, tracked the bankruptcy filing in federal court, and checked the Georgia Real Estate Commission's site for licensing information. The judgment against the former bookkeeper is also a public court record.
Forbes
3 days ago
- Business
- Forbes
Meritage Homes: A Building Stock For All Seasons
New home being built with wood plank, trusses and assorted supplies I originally made Meritage Homes (MTH) a Long Idea in June 2020 and reiterated my bullish thesis on the stock many times since. Meritage Homes, is steadily taking market share, building and delivering homes faster, all the while returning capital to shareholders through dividends and repurchases. Despite an uncertain housing outlook in the short-term, my thesis remains intact, and the stock remains undervalued. In the latest housing supply update, Freddie Mac estimated that the U.S. housing market was undersupplied by 3.7 million units as of 3Q24. The shortage of homes is a key driver of decreased housing affordability in the country. Put simply, when supply doesn't increase enough to meet demand, prices (home and rent) rise. As the 5th largest homebuilder in the U.S., Meritage Homes' products remain in strong demand, throughout all economic cycles, because everyone needs a place to live. Meritage Homes is in an advantageous position even as housing prices and interest rates remain high. The average sales price of new houses sold in the U.S. sits ~$404k in March 2025, up from ~$332k in February 2020, just before the COVID-19 pandemic sent home prices soaring. Entry-level homes, in which Meritage specializes, present a more viable and affordable option for any potential homebuyer. In fact, Meritage Homes' homes closed (finished homes delivered to the customer) grew from 7,709 in 2017 to 15,520 in the TTM ending 1Q25. In turn, the company's market share of U.S. new one family homes increased from 1.3% in 2017 to 2.3% in the TTM. See Figure 1. Figure 1: Meritage Homes' Share of U.S. New One Family Homes Sold: 2017 – TTM MTH Market Share 2017-TTM In 1Q25, Meritage Homes recorded its second highest first quarter orders and closings in company history. Meritage Homes' spec home strategy, which offers move-in ready homes available to close within 60 days, speeds up the buying process. Essentially, this strategy shortens the time between home sale and home closing, and it can help target incentives and promotions to specific market conditions. Of the homes closed in 1Q25, approximately 61% were sold within the same quarter, up from 48% in the prior year period. The company also achieved a record backlog (homes sold but not yet delivered) conversion rate of 221% in 1Q25, up from the 138% in 1Q24. Backlog refers to homes under contract that are not yet closed. It's important to note that the decrease in Meritage Homes' backlog is not due to a decrease in demand, but rather due to a strategic pivot to shorten the sales cycle and sell homes later in the construction cycle. When combining the number of homes in backlog and spec homes in inventory in 1Q25, Meritage has ~5 month supply, which is within the company's preferred range of 4-6 month supply. Figure 2: Meritage Homes' Total Specs & Ending Backlog: 1Q24 – 1Q25 MTH Inventory 1Q24-1Q25 Meritage Homes' fundamentals have been improving over the years. The company has grown revenue and net operating profit after-tax (NOPAT) by 11% and 17% respectively from 2014 through the TTM ended 1Q25. The company's NOPAT margin improved from 7% in 2014 to 11% in the TTM, while invested capital turns fell from 1.5 to 1.2 over the same time. Rising NOPAT margins are enough to offset falling invested capital turns and drive Meritage Homes' return on invested capital (ROIC) from 10% in 2014 to 13% in the TTM. Additionally, the company's Core Earnings, a proven superior earnings measure that excludes unusual gains/losses, grew 17% compounded annually from 2014 through the TTM ended 1Q25. See Figure 3. While below 2022 highs, Meritage Homes' TTM ended 1Q25 Core Earnings are still higher than any annual period between 1998-2020. Figure 3: Meritage Homes' Revenue and Core Earnings: 2014 – TTM MTH Core Earnings and Revenue 2014-TTM Meritage Homes started paying dividends at the beginning of 2023. Since then, Meritage Homes paid $179 million (4% of market cap) in cumulative dividends and increased its quarterly dividend from $0.14/share in 1Q23 to $0.43/share in 1Q25. The company's current dividend, when annualized, provides a 2.5% dividend yield. Though Meritage Homes started paying dividends relatively recently, it's been returning capital to shareholders via share buybacks for much longer. From 2019 through 1Q25, the company repurchased shares worth $486 million (10% of market cap). Since February 2019, Meritage Homes' Board of Directors has authorized the repurchase shares worth up to $750 million, with no specified expiration date. At the end of 1Q25, the company remains authorized to repurchase shares worth up to $264 million. Should the company repurchase shares at its TTM (ending 1Q25) rate, it would repurchase $115 million of shares over the next twelve months, which equals 2.3% of the current market cap. When combined, the dividend and share repurchase yield could reach 4.8%. Meritage Homes generates strong free cash flow (FCF) that covers both its share repurchases and regular dividend payments. From 2019 through 1Q25, Meritage Homes generated $1.1 billion (26% of enterprise value) in FCF while returning $665 million over the same time ($179 million in dividends and $486 million in repurchases). I like companies that choose to return capital to shareholders instead of spending it on costly executive bonuses or acquisitions that rarely drive shareholder value creation. See Figure 4. Figure 4: Meritage Homes' Cumulative FCF Since 2019 MTH Cumulative Free Cash Flow 2019-1Q25 Mortgage rates have risen significantly from the record lows of 2021, when the 30-year fixed rate mortgage (FRM) was around 2.2% and the 15-year FRM was around 2.7%. In May of 2025, Freddie Mac estimates that the average 30-year FRM sits at 6.8% and the average 15-year FRM sits at 5.9% in May 2025. See Figure 5. High mortgage rates make purchasing a home more expensive and present a headwind to all builders. Unfortunately, the easiest solution to aid consumers during times of high interest rates is to offer incentives and rate-buydowns, which create a drag on profitability. Figure 5: 30- and 15-Year Fixed Rate Mortgage: May 2020 – May 2025 Mortgage Rates Past Five Years In the 1Q25 earnings call, Meritage Homes' management noted that they don't yet know to what degree tariff-related cost increases will impact margins the remainder of the year. However, management also noted that 'the current status quo of no tariffs on lumber should get us most of our expected 2025 closings completed at current market lumber prices.' The company also intends to 'leverage its bargaining power with national vendors' given its large scale, limited floor plans, and high level of product visibility. Due to the high interest and mortgage rates, many homebuilders have increased incentives and rate buydowns, which negatively impact margins. Meritage Homes' average selling price (ASP) on home closings, home orders, and home backlogs fell 6%, 2%, and 1% YoY in 1Q25, respectively. Management noted that this decline was driven by 'increased utilization of financial incentives'. We can see the impact of these incentives in Meritage Homes' NOPAT margin, which fell from 12% in 1Q24 to 8.6% in 1Q25. In the company's 1Q25 earnings call, management noted: 'we anticipate the using of pricing incentives to remain elevated for the near future.' The good news is that the impact of lower margins, and any general housing downturn, are already more than priced into MTH at its current price. Details below. At its current price of $67/share, MTH has a price-to-economic book value (PEBV) ratio of 0.7. This ratio means the market expects the company's profits to permanently fall 30% from current levels. For context, Meritage Homes has grown NOPAT by 21% compounded annually over the last five years and 17% compounded annually over the last ten years. Perhaps even more impressive, the company has grown NOPAT 9% compounded annually over the past two decades. Below, I use my reverse discounted cash flow (DCF) model to analyze expectations for different stock price scenarios for MTH. In the first scenario, I quantify the expectations baked into the current price. If I assume: the stock is worth $68/share today – nearly equal to the current stock price. In this scenario, Meritage Homes' NOPAT falls 5% compounded annually from 2025 – 2034. In this scenario, Meritage Homes' NOPAT would equal $471 million in 2034, or 32% below its TTM NOPAT. If I instead assume: the stock is worth $97/share today – a 45% upside to the current price. In this scenario, Meritage Homes' NOPAT would fall <1% compounded annually through 2034. Should the company's NOPAT grow more in line with historical levels, the stock has even more upside. Furthermore, I think companies with long track records of profit growth deserve premium stock valuations, especially in a market filled with so many underperforming companies. Figure 6 compares Meritage Homes' historical NOPAT to the NOPAT implied in each of the above scenarios. Figure 6: Meritage Homes' Historical and Implied NOPAT: DCF Valuation Scenarios MTH DCF Implied NOPAT
National Post
3 days ago
- Business
- National Post
2025 BILD Awards honour people and companies that shape the GTA
The building and development industry came together earlier this week to celebrate the 2025 BILD Awards. These annual awards recognize excellence in the design, construction, marketing, and sales of new homes across the Greater Toronto Area. The awards are also a time when our industry celebrates the people and leaders within our industry. Article content Article content Fifty-one experts from across North America took on the challenging task of determining the winners from the more than 700 entries — only some of which I can highlight here due to the limited space of this column. Please do visit for the complete list of winners. Article content The Home Builder of the Year, Mid/High-Rise category went to The Daniels Corporation while Great Gulf received the title of Home Builder of the Year, Low-Rise. Tridel captured Green Builder of the Year, Mid/High-Rise — this year marked the 14 th time the company has taken home the Green Builder of the Year Award. Great Gulf earned Green Builder of the Year, Low-Rise. Article content Caledon Station by ARGO Development Corporation was named Best New Community — Planned/Under Development while Fitzrovia's Elm-Ledbury was chosen Best Community, Built. Article content One Roxborough West by North Drive Investments won Project of the Year, Mid-High-Rise; Project of the Year, Low-Rise went to both Arista Homes and Great Gulf for their OAKPOINTE in Upper Joshua Creek project. Article content Best Purpose-Built Rental Project was bestowed upon The Rose Corporation for their The Bakerfield II project. Article content Brixen Developments' Exhale Residences was deemed the People's Choice, one of the most sought-after honours in the BILD Awards program. Article content Howard Sokolowski, Founder of Metropia, received BILD's Lifetime Achievement Award, the highest honour BILD can present a member. The award honours those who have dedicated a lifetime to the association and the industry and demonstrated remarkable leadership and commitment to the common good. Mr. Sokolowski has been at the forefront of Canada's development industry for over 30 years. One of the most trusted and influential industry leaders, he is renowned for building iconic communities that residents are proud to call home. Article content The Angelo DelZotto Fearless Innovator Award, presented to a member company committed to pursuing innovation in all forms, including processes, technologies, and products, with the intention of positively impacting people, communities, and business, went to Assembly Corp. Fitzrovia received the Stephen Dupuis Corporate Social Responsibility Award. Sam Condo, of Weston Flooring Ltd., was the recipient of the Ignat Kaneff Inspiration Award, which recognizes an individual or member company dedicated to mentorship and supporting newcomers to Canada. Adrian Rocca, of Fitzrovia, garnered the Riley Brethour Leadership Award for outstanding professional achievement and leadership in the industry.
CTV News
3 days ago
- Business
- CTV News
Alberta's D+ grade on housing report card is lowest among provinces
Alberta is ranked dead last in Canada in a new report evaluating home building progress. Alberta is ranked dead last in Canada in a new report evaluating home building progress. Alberta received the lowest grade among Canadian provinces on a report evaluating home building progress. The Report Card on More and Better Housing gave Alberta an overall score of D+ for 'failing to adopt better building codes, incentivize factory-built housing, and regulate construction in flood-prone areas.' 'This, in spite of smart reforms being implemented by municipal governments in Calgary and Edmonton,' the report reads. The report card was commissioned by the Task Force for Housing and Climate. The task force was formed in 2023 to provide practical and actionable advice to governments on housing. It created the Blueprint for More and Better Housing, offering 'a comprehensive set of more than 140 policy actions for adding 5.8 million homes by 2030 that are affordable, low carbon and resilient.' 'Provincial governments control the bulk of housing policy tools and must step up,' said Dr. Mike Moffatt, a task force member and author of the report card. 'Provinces often speak about the housing crisis, but many are not walking the talk. Without meaningful reform from all orders of government, we won't build the homes Canadians need.' The federal government earned the highest grade on the report card, with a B. The report says the federal government adopted key recommendations, including 'federal tax incentives for rental construction, leasing of federal land for housing, and incentivizing municipal zoning reforms, which are having a positive impact on housing supply.' The provincial and federal governments were evaluated based on five categories relative to the task force's blueprint: Legalize density; Implement better building codes; Invest in factory-built housing; Avoid high-risk areas; and Fill in market gaps. 'Alberta has done less to legalize family-friendly density than other provinces and is lagging on resiliency and energy efficiency,' the report reads. No province received a grade higher than a C+. Quebec, Prince Edward Island and British Columbia all scored a C+, while New Brunswick and Ontario got Cs. Saskatchewan, Nova Scotia, Newfoundland and Labrador and Manitoba all got a C-, while Alberta sat alone with a D+. 'Calgary and Edmonton have taken leadership and instituted several helpful reforms on issues ranging from zoning to approval processes. Work on adopting these provincewide. Institute hazard mapping reforms and ensure homes are not built in areas prone to floods and wildfires,' the report said. The group on the task force is bipartisan, with former Edmonton Mayor Don Iveson and former Conservative Cabinet Minister Lisa Raitt involved. Mark Carney was a member of the group before he became the leader of the Liberal party. Read the full report on the task force's website.
