Lennar posts surprise first-quarter profit

Miami /
Mar.March 29, 2011 12:37 PM

Even as new U.S. home sales plunged to a record low in February, home builder Lennar Corp. posted an unexpected profit for the three months that ended Feb. 28 thanks to cost-cutting measures and investments in distressed real estate assets, the Miami-based company said this morning. Lennar’s net income for the first quarter of $27.4 million, or 14 cents per share, well above analysts’ predictions of a loss of 7 cents per share. Analysts told Bloomberg News that the boost came largely from its Rialto Capital subsidiary, which was launched in 2007 to focus on distressed properties and loan workouts and was responsible for $11 million in operating income during the first quarter. It’s the fourth consecutive profitable quarter for Lennar, which lost $6.5 million, or 4 cents per share, during the first quarter of 2010 but was nonetheless the second-most profitable home builder in the country last year. Meanwhile, as the Commerce Department said last week, sales of new U.S. homes took a 16.9 percent tumble in February to an annual pace of 250,000 — a record low — though the nosedive didn’t seem to be affecting home builder stocks. [Bloomberg]


Related Articles

arrow_forward_ios
Enclave at Plantation at 100 South Hiatus Road in Broward County (Lennar, Lennar Architecturals, Illustration by The Real Deal with Getty)
Lennar gets green light to build 40 single-family homes in Plantation
Lennar gets green light to build 40 single-family homes in Plantation
Lennar's Eric Feder with 4042 Island Estates Drive (The Carroll Group, Lennar)
Lennar’s Eric Feder sells waterfront Island Estates home in Aventura for record $12M
Lennar’s Eric Feder sells waterfront Island Estates home in Aventura for record $12M
Lennar’s Stuart Miller (Lennar, iStock)
Lennar proposes 1,335 homes and revamped golf course in Homestead’s Keys Gate
Lennar proposes 1,335 homes and revamped golf course in Homestead’s Keys Gate
 Lennar's Stuart Miller with the Southern Boulevard (Google Maps)
Lennar pays $190M for remainder of Arden homesites near Wellington
Lennar pays $190M for remainder of Arden homesites near Wellington
Land gobbler: Lennar pays $25M for dev site near Pinecrest
Land gobbler: Lennar pays $25M for dev site near Pinecrest
Land gobbler: Lennar pays $25M for dev site near Pinecrest
Lennar's Stuart Miller (Lennar, Gogle Maps, iStock)
Lennar sells Landmark at Doral clubhouse to homeowners association for $16M
Lennar sells Landmark at Doral clubhouse to homeowners association for $16M
Stuart Miller, executive chairman, Lennar (Lennar, Dorthy Jacks, CFA, AAS)
Lennar buys 188 acres for homesites at Arden near Wellington
Lennar buys 188 acres for homesites at Arden near Wellington
2445 South Ocean Boulevard (Ed Butera/IBI Designs, iStock)
Hedge funder drops record $35M for oceanfront Highland Beach estate
Hedge funder drops record $35M for oceanfront Highland Beach estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...