Up, up, up. The third quarter of 2012 was kind to Lennar Corp. as the Florida-based homebuilder’s year-over-year profits quadrupled to 40 cents per share ($87.1 million) from 11 cents ($20.7 million) one year earlier.
“Our third quarter reflects solid profitability in all of our business segments,” CEO Stuart Miller said in the quarterly earnings report. “The housing market has stabilized and the recovery is well underway.”
Locally, Lennar is marketing seven new-home communities in Valencia and the company owns 15 percent of The Newhall Land and Farming Co., which is preparing to build the first two (of five) phases of the eventual 20,880-home Newhall Ranch development west of Interstate 5 in the Santa Clarita Valley.
Nationally, Lennar’s year-over-year total revenues rose 34 percent ($1.1 billion). Revenues from home sales were up 33 percent to $932.8 million from $700.6 million in 2011, due largely to a 28-percent increase in the number of home deliveries (3,655 versus 2,832 a year ago) and an average price increase of 4 percent ($258,000 versus $247,000).
The company didn’t have to sweeten the pot for homebuyers nearly as much, either. Sales incentives offered to homebuyers on homes delivered during the quarter were $26,100 – 9.2 percent of home sales revenue – versus $33,600 one year earlier (12.0 percent).
“Low mortgage rates, affordable home prices, increased buyer confidence and an extremely favorable rent-to-own comparison are driving growth in each of our markets,” Miller said.
He said fewer foreclosure homes on the market are contributing to new-home orders, as well.
New orders during the quarter were up 44 percent (4,198 homes) with a cancellation rate of 17 percent. As of Aug. 31 the company had a backlog of 4,513 homes, up 79 percent, and that backlog had a dollar value of $1.3 billion, up 95 percent.