Tarragon Corporation Reports New Home Orders Triple Over Prior Year and Backlog Increases 76 Percent to $557 Million Potential Future Revenue From Active Communities and Development Pipeline Climbs to $5.4 Billion
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Tue Jul 19 07:35:28 2005 EST
NEW YORK, July 19, 2005 /PRNewswire-FirstCall via COMTEX/ --
Tarragon Corporation
(Nasdaq: TARR), a leading homebuilder specializing in the development and
marketing of high-density residential communities today announced 1,186 new
home orders in sixteen communities worth $295.2 million or an average of
$249,000 each during the quarter. This compares to 385 orders for
$110.6 million during the second quarter of 2004.
The Company's sales backlog (homes sold but not yet delivered) reached
$557 million, which was an increase of 31 percent over the 2005
first-quarter-end backlog of $423 million, and 76 percent over the
year-earlier backlog of $316 million. Approximately $410 million of the
current backlog is expected to close this year.
Tarragon also announced dramatic growth in its Active Communities and its
Development Pipeline, with a combined future potential sellout value of
$5.4 billion from 14,600 homes.
Tarragon added twelve communities comprising 3,396 homes and $706 million
in future homebuilding revenue to its inventory of homes under active
development. Of these, 1,729 units located in six communities transferred
from Tarragon's apartment rental portfolio have been targeted for condominium
conversion over the next twelve months. This brings the number of homes under
active development to 7,561 in 39 communities representing $2.0 billion in
potential sales revenue.
Tarragon continued expanding its pipeline of future projects, adding 14
new sites predominantly in the northeast with a potential 5,300 homes and an
estimated sellout of $2.6 billion. This brings the June 30, 2005 Development
Pipeline to $3.4 billion totaling in excess of 7,000 homes. Tarragon's
Development Pipeline includes projects which may be awaiting zoning and other
governmental approvals and final determination of economic feasibility.
Potential sales revenue in Tarragon's combined active communities and
Development Pipeline has now reached $5.4 billion comprising 14,600 homes in
60 communities. Based on these estimates, 64 percent of future sales will
come from the Northeast, 29 percent from the Southeast and 7 percent from
other locations.
The make-up of the Active and Pipeline projects is diverse as to product
type and geographic region, reflecting the Company's customer-targeted
approach to developing in its core markets. The Company continues to take
advantage of a robust condominium conversion market in the short run while
investing in ground-up development as the base for long-term future growth.
While 47 percent of the near-term revenue from Tarragon's active projects will
come from condominium conversions, including $283 million of revenue from
conversions of properties originally built by Tarragon for the rental market,
condominium conversions represent only 11% of the total Development Pipeline. |
