This Quarterly Report on Form 10-Q and other written reports and oral statements made from time to time by the Company may contain so-called “forward-looking statements,” all of which are subject to risks and uncertainties. One can identify these forward-looking statements by their use of words such as “expect,” “plan,” “will,” “may,” “anticipate,” “believe,” “estimate,” “should,” “intend,” “forecast,” “project” the negative or plural of these words, and other comparable terminology. One can identify them by the fact that they do not relate strictly to historical or current facts. statements are likely to address the Company’s growth strategy, financial results and product and development programs. One must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company’s forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. One should carefully evaluate such statements in light of factors described in the Company’s filings with the
Use of Terms
The following discussion analyzes our financial condition and results of operations for the six months ended
Building on a history of over 2,400 new homes built with over 400 elevation/renovation/addition projects since 1993, the management of
A new trend in the real estate market which has experienced significant growth in the last year is the emerging Build To Lease trend. This focus and concentration on building both single and multi-family developments with the intention to lease them immediately upon completion is being made in response to several factors. One factor is the extreme shortage of rental properties on the market, not only for first time homemakers, but for retirees, and young professionals who are unclear as to the intentions of settling in one location. The second factor is the overall lender and funding source preference to lend to Build To Lease developments, as opposed to more traditional Build To Sell developments due to the perception of Build To Lease as a safer investment over the long term. Finally, the extraordinary amount of interest from non-traditional sources such as pension and hedge funds, insurance companies and venture capital firms to purchase completed new For Lease developments at attractive metrics based on capitalization rates has spurred a large growth in this market segment.
The Company has made the decision to change focus in their new home developments to better accommodate this growing trend. Currently all new multi-family developments located in
In addition to the above projects, which are in process, the Company has also estimated an additional
Properties currently owned and in the development stage
The Company is actively working with several permanent lenders to finalize an infrastructure and construction finance facility.
The Company is preparing to begin infrastructure work on the property, and will be clearing the property in the short term. Infrastructure work should begin in the last quarter of 2022 or early 2023.
Preliminary approval was granted.
It is anticipated that the balance of the development approvals will cost approximately +/-
The Company may need to seek loans from funding sources to finance infrastructure and vertical construction for this project.
The Company acquired this property occurred on
On
The Company successfully obtained Redevelopment Approval from the Borough in
Subsequent event: The Company sold this property on 8/15/22.
The Company was heard before the
The Company acquired this property on
The Company received Final approvals on
Properties Under Contract to Purchase and in the Approval Stage
On
The application for a use variance was heard on
The Company is in the process of applying for preliminary and final site plan approval and should be heard at the
Additional comments
The Company was awarded the Ocean County Best of the Best Awards for 2017, 2018, 2019 & 2020 in two categories (Best Custom Modular Builder and Best Home Improvement Contractor), which has caused significant new awareness and interest from the public. This has led to more showroom traffic, completed estimates and signed contracts. Referrals about
The phrase ‘The Region’s Most Trusted Builder’ accurately describes the company and is becoming increasingly well known to homeowners in need of new homes, elevation & renovation work. The management team has never failed to complete a project in over 28 years in the industry.
The Company’s business model over the last year has been focused on increasing the new home and new development portion of our business, until it represents 50% – 70% of our entire revenue stream, from the current level of 20%. New home development has a much greater scalability and growth potential than elevation/renovation work. Though the Company has enjoyed steady growth in the renovation/elevation portion of the company the new homes division continues to represent a greater percentage of total revenue.
Management hopes for steady growth in all segments of the company, since the rebuilding process will continue for the foreseeable future, and the Build to Lease category is very strong and growing. The combined total number of homes affected by Storm Sandy that will need to be raised or demolished and rebuilt is in excess of 30,000 homes, of which less than 15,000 have been rebuilt. This remaining combined market for new construction and elevation projects in the Company’s market area is estimated to be in the range of
Due to the opportunities afforded by the market conditions,
RESULTS OF OPERATIONS –
The summary below should be referenced in connection with a review of the following discussion of our results of operations for the six months ended
Results of Operations – Comparison for the six months ended
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