search

The Real Deal Logo

Trending

Rent board’s 4% hike will “plunge” buildings into distress: landlordsRent board’s 4% hike will “plunge” buildings into distress: landlordsH-E-B snags 21 acres in Celina, hinting at development boomH-E-B snags 21 acres in Celina, hinting at development boomHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudGrupo Frali buys Edgewater dev site to complete full block assemblageGrupo Frali buys Edgewater dev site to complete full block assemblage
New York

Toll Brothers earns $89M, tops estimates in Q2

Worries about luxury builder’s New York properties “overdone”: analyst

From left: Toll Brothers' Douglas Yearley and Told Brothers City Living's David von Spreckelsen
From left: Toll Brothers' Douglas Yearley and Told Brothers City Living's David von Spreckelsen

America’s largest luxury home builder reported a strong quarter, beating both analysts’ estimates and last year’s numbers.

That’s up from $67.9 million, or 37 cents a share, over the same period in 2015. Analysts had predicted the Horsham, PA-based firm would make about 46 cents a share in the quarter.

Toll Brothers earned a net income of about $89.1 million, or 51 cents a share, in the three months ending April 30, according to a statement from the company reported on by Bloomberg.

Sign Up for the undefined Newsletter

Toll Brothers has expanded into markets such as New York and California, which many say are overpriced, leading to worries about the firm’s future earnings.

Those concerns are “overdone,” analyst Megan McGrath of MKM Holdings told Bloomberg, citing the long-term potential of the company’s portfolio. “In a growth environment, if you assume they can continue to grow, it’s pretty compelling.”

Last month, the company’s urban development arm Toll Brothers City Living, filed a condominium offering for its 133-unit 122 East 23rd Street in Gramercy, which it projects will sell out at $503.5 million, or about $3.8 million per unit.

It’s also developing the Pierhouse condos at Brooklyn Bridge Park, among several other New York City projects. [Bloomberg] – Ariel Stulberg