Home builders

Toll Brothers luxury home builders hit record for new home contracts amid construction boom

Luxury home builder Toll Brothers Inc. announced in its third quarter fiscal 2021 results Tuesday that the company hit a new record of new business in the quarter, topping the third quarter of the year by 35%. last year when new contracts hit a previous record. high.

The net worth of the signed contract was $ 2.98 billion for the company in the most recent quarter, and contract homes reached 3,154, an 11% increase year-over-year . The homebuilder said in its statement that net signed contracts – in dollars and units – were third quarter records.

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TOL TOLL BROTHERS, INC. 55.22 -0.07 -0.13%

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The company also set all-time highs in dollars and units for overdue homes, with value up 55% from the previous year to $ 9.44 billion, and units up. from 47% to 10,661.

“We are very pleased with our performance in the third quarter,” President and CEO Douglas C. Yearley, Jr. said in a statement. “Home sales revenue increased 37%, and pre-tax profit and earnings per share more than doubled from a year ago. We are benefiting from our strategy of expanding our product lines, prices and geographies as we continue to grow our business. , increase prices, increase margins and improve the efficiency of our capital. “

“Demand continues to be very strong,” he continued, adding that “the housing market is driven by many strong fundamentals including low mortgage rates, millennial-friendly demographics, a decade of pent-up demand. , a low supply of new homes, and a tight resale market.

A near-completed Toll Brothers house is seen in Broomfield, Colorado on February 25, 2014. REUTERS / Rick Wilking

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Earlier Tuesday, Toll Brothers also announced a new partnership with Equity Residential to develop rental apartment communities in several cities, including Atlanta, Austin, Boston, Denver, San Diego, Seattle and Dallas-Fort Worth.

“This venture will increase the capital efficiency of our Toll Brothers Apartment Living platform, allowing us to develop more apartments with less capital,” Yearley said in a separate statement celebrating the deal. “Having Equity Residential co-investing with us on the initial site acquisition and being the likely buyer of developed properties during stabilization will enable our Apartment Living business to improve return on equity. and generate a higher and more predictable income stream through constant and recurring fees and real estate sales. “


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