Toll Brothers Inc. reported in its fiscal year 2021 third-quarter earnings results on Tuesday that the company set a new record for new home contract jobs during the quarter, outpacing the previous all-time high set in the third quarter of last year by 35%.
In the most recent quarter, the firm’s net signed contract value was $2.98 billion, and contracted homes reached 3,154, an 11 percent increase year over year. According to the home builder’s release, net signed contracts set third-quarter records in dollars and units.
The company also saw all-time highs in both dollars and units for homes in backlog, with value increasing by 55% year on year to $9.44 billion and units increasing by 47% to 10,661.
“We are very pleased with our third-quarter performance,” Chairman and CEO Douglas C. Yearley, Jr. said in a statement. “Home sales jobs revenues were up 37%, and pre-tax income and earnings per share more than doubled compared to one year ago. We are benefiting from our strategy of broadening our product lines, price points, and geographies as we continue to grow our business, drive price, expand margins and improve our capital efficiency.”
“Demand continues to be very strong,” he continued, adding that “The real estate market is being driven by many strong fundamentals, including low mortgage rates, favorable millennial-driven demographics, a decade of pent-up demand, low new home supply, and a tight resale market.”
Toll Brothers also announced a new partnership with Equity Residential earlier on Tuesday 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 at initial site acquisition and being the likely purchaser of developed properties at stabilization will enable our Apartment Living business to improve return on equity and to generate a higher and more predictable income stream through consistent and recurring fees and property sales.”
Source: Fox News
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