The Real Deal New York

Posts Tagged ‘pultegroup’

  • The 3 top paid homebuilder CEOs

    July 30, 2014 10:30AM
    From left: Stuart Millar, Larry Mizel and Richard Dugas

    From left: Stuart Millar, Larry Mizel and Richard Dugas

    The top executives of the country’s 13 largest home-building corporations saw a 37 percent jump in their salaries last year, thanks to increased sales and production of new homes.

    Stockholders, on the other hand, didn’t fare as well. [more]

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  • Fitch Ratings downgraded two ratings on home builder PulteGroup this week as a result of the lifeless housing market, Housing Wire reported. PulteGroup’s issuer default and senior unsecured debt ratings were shifted to BB from BB+ yesterday in light of a softening economy and subdued growth expectations in housing for the rest of 2011 and 2012.
    PulteGroup reported second-quarter losses of $55.4 million, or 15 cents a share, as it took significant organizational restructuring and debt repurchase charges for the quarter.
    “If the economy continues its currently lackluster advance and a relatively modest number of jobs are added, housing metrics should moderately decline this year, a more bearish forecast than earlier in the year,” Fitch analysts said. “Fitch is projecting a modest improvement for housing off a very low bottom in 2012.” [Housing Wire]

  • A management consolidation plan at PulteGroup, the country’s second largest home builder in terms of annual sales, has resulted in the termination of as many as 10 executive contracts, though a decision on a total number of layoffs has not yet been reached, according to the Wall Street Journal.

    Pulte has been struggling since it acquired Texas’ Centax for $1.3 billion in 2009 and has only had one profitable quarter since. It has $1 billion in charges related to the purchase. The company also lost $40 million last quarter. … [more]

  • Even though sales are lethargic in the new home market nationwide, home builder stocks are hanging tough, according to CNNMoney. Despite a 17 percent drop in the number of new homes sold between February and January, major U.S. home builders like Ryland, KB Home and Lennar have seen their shares stay relatively flat recently, while PulteGroup actually saw its shares climb 3 percent. Ryan Detrick, a senior technical strategist with Schaffer’s Investment Research, said he’s encouraged by the builders’ stock performance. “I’m not saying you should go buy a house because nobody knows where prices are going,” Detrick said. “But even though the data is terrible, builder stocks are holding up.” [CNNMoney]

  • Lehman Brothers Holdings is soliciting development partners for 75 real estate projects in 19 states, executives who received the Lehman proposals told Bloomberg News. Among the potential partners Lehman has its eye on: PulteGroup, Toll Brothers, Standard Pacific, DMB Associates, FivePoint Communities and Newland Communities. The company has some $2 billion in residential and master-planned communities in its portfolio, and all of the partners its bankruptcy restructuring firm has reached out to have experience developing those types of projects. [Bloomberg]