Toll Brothers, Inc. (NYSE:TOL) (www.tollbrothers.com), the nation's
leading builder of luxury homes, through its Gibraltar Capital and
Asset Management subsidiary ("Gibraltar"), today announced the
creation of a venture with a large institutional investor to
provide builders and developers with land banking and joint venture
capital. The venture will finance builders' and developers'
acquisition and development of land and home sites, and pursue
other complementary opportunistic investment strategies. The
venture, which will be managed by Gibraltar, will have a total of
$400 million of funding commitments: 75% from the institutional
investor and 25% from Toll Brothers.
Roger A. Brush, Gibraltar's president and managing director,
stated: "This exciting new platform will provide much needed
acquisition and development capital to third-party residential
builders and developers in lot constrained markets across the
country. The venture will provide financing that meets the varying
strategic needs of private and public builders.
"Many builders require capital beyond the capacity of their
balance sheets to fund land acquisition and development. Gibraltar
has established relationships with many builders to whom it is
selling land and improved lots. We are also securing
approvals and installing site improvements on many projects.
Our track record and land development expertise give us
particular insight in working with builder clients."
Douglas C. Yearley, Jr., Toll Brothers' chief executive officer,
stated: "This new venture allows Gibraltar to pursue opportunities
to provide builders and developers unique solutions to their
financing needs. Gibraltar was originally formed in 2010 to
acquire distressed real estate loan portfolios from financial
institutions. On its own and in partnerships, it was a successful
investor and manager in the acquisition and workout of over $2.2
billion of residential and commercial loan portfolios, a portion of
which Gibraltar directly managed."
Robert I. Toll, executive chairman, stated: "Building upon
Gibraltar's expertise and track record of value creation, we look
forward to continued success as it opportunistically pivots its
investment strategy during this new stage of the housing recovery.
We believe this platform will serve a growing need in the
market."
In conjunction with this transaction, the institutional investor
and Toll Brothers have formed a separate 75/25 joint venture which
acquired most of Gibraltar's wholly-owned portfolio of existing
assets. Other investments in which Gibraltar owns a partial
interest were not included in these transactions.
Moelis & Company LLC served as exclusive financial advisor
and placement agent to Toll Brothers and Gibraltar on the
transaction.
About Gibraltar Capital and Asset
Management
Gibraltar Capital and Asset Management, LLC, a subsidiary of
Toll Brothers, Inc., is a leading opportunistic investor and
developer in both residential and commercial real estate.
Gibraltar's primary focus is providing acquisition and development
capital to residential builders and developers across the country,
in addition to direct development of certain projects. Gibraltar's
target investments also include value-add commercial assets and
other alternative ventures. Gibraltar's investment portfolio
comprises several properties consisting of finished and undeveloped
lots – which Gibraltar continues to sell to home builders and land
developers – as well as income producing commercial and
multi-family assets. To learn more, please visit
http://www.gibraltarcm.com/.
About Toll Brothers
Toll Brothers, Inc., A FORTUNE 1000 Company, is the nation's
leading builder of luxury homes. The Company began business in 1967
and became a public company in 1986. Its common stock is listed on
the New York Stock Exchange under the symbol "TOL." The Company
serves move-up, empty-nester, active-adult, and second-home buyers
and operates in 19 states: Arizona, California, Colorado,
Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts,
Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina,
Pennsylvania, Texas, Virginia, and Washington, as well as in the
District of Columbia.
Toll Brothers builds an array of luxury residential
single-family detached, attached home, master planned resort-style
golf, and urban low-, mid-, and high-rise communities, principally
on land it develops and improves. The Company operates its own
architectural, engineering, mortgage, title, land development and
land sale, golf course development and management, home security,
and landscape subsidiaries. The Company also operates its own
lumber distribution, house component assembly, and manufacturing
operations. The Company purchases distressed loan and real estate
asset portfolios through its wholly owned subsidiary, Gibraltar
Capital and Asset Management. The Company acquires and develops
commercial and apartment properties through Toll Brothers Apartment
Living, Toll Brothers Campus Living, and the affiliated Toll
Brothers Realty Trust, and develops urban low-, mid-, and high-rise
for-sale condominiums through Toll Brothers City Living.
In 2016, Toll Brothers ranked #6 among all 1,500 companies in
Fortune magazine's survey of the World's Most Admired Companies in
the Quality of Products/Services Offered category behind only
Apple, Walt Disney, Amazon, Alphabet, and Nordstrom. The firm was
also named as the Most Admired Home Building Company for 2016, the
second year in a row it has been so honored. Toll Brothers was
named 2014 Builder of the Year by Builder magazine, and
is honored to have been awarded Builder of the Year in 2012
by Professional Builder magazine, making it the first
two-time recipient. Toll Brothers proudly supports the communities
in which it builds; among other philanthropic pursuits, the Company
sponsors the Toll Brothers Metropolitan Opera International Radio
Network, bringing opera to neighborhoods throughout the world. For
more information, visit www.tollbrothers.com.
Toll Brothers discloses information about its business and
financial performance and other matters, and provides links to its
securities filings, notices of investor events, and earnings and
other news releases, on the Investor Relations section of its
website (tollbrothers.com/investorrelations).
Forward Looking Statement
Certain information included in this release is forward-looking
within the meaning of the Private Securities Litigation Reform Act
of 1995, including, but not limited to, information related to:
anticipated operating results; anticipated financial performance,
resources and condition; selling communities; home deliveries;
average home prices; consumer demand and confidence; contract
pricing; business and investment opportunities; and market and
industry trends.
Such forward-looking information involves important risks and
uncertainties that could significantly affect actual results and
cause them to differ materially from expectations expressed herein
and in other Company reports, SEC filings, statements and
presentations. These risks and uncertainties include, among
others: local, regional, national and international economic
conditions; fluctuating consumer demand and confidence; interest
and unemployment rates; changes in sales conditions, including home
prices, in the markets where we build homes; conditions in our
newly entered markets and newly acquired operations; the
competitive environment in which we operate; the availability and
cost of land for future growth; conditions that could result in
inventory write-downs or write-downs associated with investments in
unconsolidated entities; the ability to recover our deferred tax
assets; the availability of capital; uncertainties in the capital
and securities markets; liquidity in the credit markets; changes in
tax laws and their interpretation; effects of governmental
legislation and regulation; the outcome of various legal
proceedings; the availability of adequate insurance at reasonable
cost; the impact of construction defect, product liability and home
warranty claims, including the adequacy of self-insurance accruals,
and the applicability and sufficiency of our insurance coverage;
the ability of customers to obtain financing for the purchase of
homes; the ability of home buyers to sell their existing homes; the
ability of the participants in various joint ventures to honor
their commitments; the availability and cost of labor and building
and construction materials; the cost of raw materials; construction
delays; domestic and international political events; and weather
conditions. For a more detailed discussion of these factors, see
the information under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our most recent annual report on Form 10-K and our
subsequent quarterly reports on Form 10-Q filed with the Securities
and Exchange Commission.
Any or all of the forward-looking statements included in this
release are not guarantees of future performance and may turn out
to be inaccurate. Forward-looking statements speak only as of
the date they are made. The Company undertakes no obligation
to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise.
CONTACT: Frederick N. Cooper, IR/Financial Media
fcooper@tollbrothersinc.com (215) 938-8312
Kira Sterling, General Media
ksterling@tollbrothersinc.com (215) 938-8220
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