08:00:05 Beazer Homes Introduces Its Pre-Owned Homes Division
Beazer Homes Introduces Its Pre-Owned Homes Division
Builder Expands Consumer Choices to Include Rental Options of Recently Built
Homes
ATLANTA, Apr 04, 2011 (BUSINESS WIRE) -- Beazer Homes (BZH), one of the country's
top-10 homebuilders, is expanding beyond new home sales with the introduction of
its Pre-Owned Homes Division. Beginning in the Phoenix market, the new division
is charged with acquiring, improving and renting recently built, previously owned
homes within select communities in markets in which the company currently
operates. By augmenting the sale of newly constructed homes with rental options
of previously owned homes, Beazer expects to appeal to a broader range of
consumers.
Ian J. McCarthy, Beazer Homes' Chief Executive Officer commented on the new
Division: "While many prospective home buyers recognize that this is an excellent
time to purchase a new Beazer eSMART high performance home -- with all of its
award-winning energy-saving features -- other consumers want or need different
home alternatives. With the Pre-Owned Homes Division, we look forward to
addressing this demand."
Homes targeted for inclusion in the Pre-Owned Homes program will have been built
since 2004 by a reputable builder, including homes built by Beazer Homes. All
Beazer Pre-Owned Homes will receive necessary repairs and upgrades to bring them
up to strict Company standards.
Because the primary source of Pre-Owned Homes will be distressed sales, typically
foreclosures or short sales, Beazer anticipates acquiring homes at a discount to
their replacement cost. Having completed its first acquisitions and tenant
move-in during March, Beazer anticipates increasing the size of its Pre-Owned
Homes portfolio to more than 100 homes in Phoenix by the end of fiscal 2011.
The Company expects the rental of these homes to appeal to consumers who have
elected not to become home owners as well as those who may not fully qualify for
mortgage financing for a new home at this time. The rental market for recently
built homes in Phoenix is very strong, with an estimated vacancy rate below 5%.
The new Division leverages Beazer's strengths as a homebuilder and knowledge of
its markets, and offers an attractive investment proposition for a portion of the
Company's cash reserve. Rich O'Connor, a longtime Beazer executive, has been
appointed to lead the company's Pre-Owned Homes Division.
"As a public homebuilder with significant financial resources, Beazer has the
expertise to identify, acquire and improve this select group of previously-owned
homes," said O'Connor. "And by working with third party local property management
companies, we will be creating a best-in-class rental experience for consumers."
Because Beazer will own each home, rather than a bank or an under-capitalized
investor, renters can have confidence in the homes and neighborhoods served by
the Pre-Owned Homes Division. In the coming months the Pre-Owned Homes Division
may expand its geographic coverage to include homes in Nevada or California.
Upon a recovery in the housing markets, characterized in part by higher home
prices and lower cash yields from rental income, Beazer expects to offer these
previously owned homes for re-sale, either to their respective tenants or to
other buyers.
Beazer Homes USA Inc., headquartered in Atlanta, Georgia, is one of the ten
largest single-family homebuilders in the United States. The company's
industry-leading eSMART high performance homes are designed to lower the total
cost of home ownership while reducing energy and water consumption. With
award-winning floor-plans, the company offers homes that incorporate exceptional
value and quality to consumers in 16 states, including Arizona, California,
Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York,
North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia.
Beazer Homes is listed on the New York Stock Exchange and trades under the ticker
symbol "BZH."
Forward Looking Statements
This presentation contains forward-looking statements. These forward-looking
statements represent our expectations or beliefs concerning future events, and it
is possible that the results described in this press release will not be
achieved. These forward-looking statements are subject to risks, uncertainties
and other factors, many of which are outside of our control, that could cause
actual results to differ materially from the results discussed in the
forward-looking statements, including, among other things, (i) the final outcome
of various putative class action lawsuits, multi-party suits and similar
proceedings as well as the results of any other litigation or government
proceedings and fulfillment of the obligations in the Deferred Prosecution
Agreement and consent orders with governmental authorities and other settlement
agreements; (ii) additional asset impairment charges or writedowns; (iii)
economic changes nationally or in local markets, including changes in consumer
confidence, declines in employment levels, volatility of mortgage interest rates,
availability of mortgage financing and inflation; (iv) a slower economic rebound
than anticipated, coupled with persistently high unemployment and additional
foreclosures; (v) continued or increased downturn in the homebuilding industry;
(vi) estimates related to homes to be delivered in the future (backlog) are
imprecise as they are subject to various cancellation risks which cannot be fully
controlled, (vii) our cost of and ability to access capital and otherwise meet
our ongoing liquidity needs including the impact of any downgrades of our credit
ratings or reductions in our tangible net worth or liquidity levels; (viii)
potential inability to comply with covenants in our debt agreements or satisfy
such obligations through repayment or refinancing; (ix) increased competition or
delays in reacting to changing consumer preference in home design; (x) shortages
of or increased prices for labor, land or raw materials used in housing
production; (xi) factors affecting margins such as decreased land values
underlying lot option agreements, increased land development costs on communities
under development or delays or difficulties in implementing initiatives to reduce
production and overhead cost structure; (xii) the performance of our joint
ventures and our joint venture partners; (xiii) the impact of construction defect
and home warranty claims including those related to possible installation of
drywall imported from China; (xiv) the cost and availability of insurance and
surety bonds; (xv) delays in land development or home construction resulting from
adverse weather conditions; (xvi) potential delays or increased costs in
obtaining necessary permits and possible penalties for failure to comply with
laws, regulations and governmental policies; (xvii) potential exposure related to
additional repurchase claims on mortgages and loans originated by BMC; (xviii)
estimates related to the potential recoverability of our deferred tax assets;
(xviv) effects of changes in accounting policies, standards, guidelines or
principles; or (xvv) terrorist acts, acts of war and other factors over which the
Company has little or no control.
Any forward-looking statement speaks only as of the date on which such statement
is made, and, except as required by law, we do not undertake any obligation to
update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. New factors emerge from time to time and
it is not possible for management to predict all such factors.
SOURCE: Beazer Homes USA Inc.
Beazer Homes USA, Inc.
Carey Phelps, 770-829-3700
Director, Investor Relations & Corporate Communications
investor.relations@beazer.com
Copyright Business Wire 2011
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