Luxury home builder Toll Brothers Inc. reported in its fiscal year 2021 third quarter earnings results on Tuesday that the firm hit a new record for new contracts on the quarter, exceeding Q3 of last year by 35% when new contracts hit a previous all-time high.
The net signed contract value was $2.98 billion for the firm in the most recent quarter, and contracted homes reached 3,154 in a year-over-year increase of 11%. The home builder said in its release that net signed contracts – in both dollars and units – were third quarter records.
Ticker Security Last Change Change % TOL TOLL BROTHERS, INC. 61.04 +1.66 +2.80%
The company also saw all-time records in both dollars and units for homes in backlog, with value surging 55% from a year earlier to $9.44 billion, and units spiking 47% to 10,661.
"We are very pleased with our third quarter performance," Chairman and CEO Douglas C. Yearley, Jr. said in a statement. "Home sales revenues were up 37%, and pre-tax income and earnings per share more than doubled compared to one year ago. We are benefiting from our strategy of broadening our product lines, price points and geographies as we continue to grow our business, drive price, expand margins and improve our capital efficiency."
"Demand continues to be very strong," he continued, adding that "The housing market is being driven by many strong fundamentals, including low mortgage rates, favorable millennial-driven demographics, a decade of pent-up demand, low new home supply, and a tight resale market."
A nearly finished Toll Brothers home is seen in Broomfield, Colorado February 25, 2014. REUTERS/Rick Wilking
Earlier in the day on Tuesday, Toll Brothers also announced a new partnership with Equity Residential to develop rental apartment communities in several cities, including Atlanta, Austin, Boston, Denver, San Diego, Seattle and Dallas-Fort Worth.
"This venture will increase the capital efficiency of our Toll Brothers Apartment Living platform, allowing us to develop more apartments with less capital," Yearley said in a separate statement celebrating the deal. "Having Equity Residential co-investing with us at initial site acquisition and being the likely purchaser of developed properties at stabilization will enable our Apartment Living business to improve return on equity and to generate a higher and more predictable income stream through consistent and recurring fees and property sales."