KB Home to Leave Washington, D.C., Market
May 12 2016 - 6:30PM
Dow Jones News
Homebuilder KB Home said Thursday that it would pull out of the
Washington, D.C., market to sharpen its focus on its bigger
geographic segments.
The Los Angeles company said it would complete the exit over the
next 12 months and it plans to continue building and delivering
homes already on the books.
For KB Home, the nation's capital is a small market; Washington,
D.C., represents about 2% of its overall community count. It has a
bigger footprint across the central states, where nearly half of
its homes under construction and land under development were last
year, and in the west and southwest U.S.
"We entered the Metro D.C. region late in the previous housing
cycle, and have not been able to establish the scale necessary to
generate solid returns," Chief Executive Jeffrey Mezger said,
adding that the company would reallocate resources to areas where
it has a larger, more-established presence.
The company said the move would result in a pretax charge of
about $6 million to $8 million in the current quarter.
Shares in the company, down 10% over the past 12 months, were
inactive during after-hours trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
May 12, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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