By Dan Brendel and Michael Potter – Philadelphia Business Journal
Toll Brothers Inc. began February with an unexpected windfall, netting more than $180 million from the sale of vacant land it once tabbed for an expansive residential development.
The Fort Washington-based homebuilder announced the sale Tuesday in conjunction with its earnings report for the fiscal first quarter ended Jan. 31. Toll Brothers CEO Douglas Yearley Jr., speaking to investors on the company's earnings call Wednesday, called the all-cash deal a "one-off."
"We had a unique piece of property in Virginia that we were processing for approvals to build homes on and a data center operator came along and made us an offer that we couldn't refuse," Yearley said.
JK Land Holdings, a major Virginia data center investor led by CEO Chuck Kuhn, bought the 108-acre lot at 19508 Freedom Trail Road in Ashburn. Toll Brothers previously planned to build some 1,300 apartments and townhouses at the site, located about 35 miles west of Washington, D.C., in affluent Loudoun County.
Yearley did not identify JK Land Holdings as the buyer when discussing the deal on Wednesday's call. The sale took place in Toll's second quarter, which began Feb. 1, according to the company.
Toll Brothers said it expects a pre-tax land sale gain of about $175 million in the second quarter as a result of the sale, and Yearley told investors the proceeds will be used to increase its budget for share repurchases from $400 million to $500 million in fiscal 2024.
Full story: http://tinyurl.com/ys3dae63
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