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Group buys former Armour meatpacking site in Stockyards

The 16.8-acre site of the historic, former Armour meatpacking plant in Fort Worth’s Stockyards has changed hands, and its new owners aren’t saying anything about their plans. Chesapeake Land Development Co., which bought the site

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Hulen Pointe Shopping Center sold

Hulen Pointe Shopping Center, located in southwest Fort Worth on South Hulen Street one mile south of Hulen Mall, has been purchased by Addison-based Bo Avery with TriMarsh Properties for an undisclosed price.

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Dallas-Fort Worth in top five commercial real estate markets in 2015

According to the Emerging Trends in Real Estate 2015 report, just co-published by PwC US and the Urban Land Institute (ULI), Dallas-Fort Worth ranks No. 5, with two other Texas cities, Houston and Austin ranking at No. 1 and 2 respectively. San Francisco ranks No. 3 and Denver No. 4.

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Social House Fort Worth plans to open mid-November

Social House has leased 5,045 square feet at 2801-2873 W Seventh St. in Fort Worth, according to Xceligent Inc.

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Fort Worth temporarily stops issuing new home permits in TCU area

The moratorium will give a committee and the City Council time to review a proposed overlay that will pare the number of permissible unrelated adults living in the same house.

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D.R. Horton falls most in five years after earnings decline

John Gittelsohn
(c) 2014, Bloomberg News.


D.R. Horton Inc., the largest U.S. homebuilder by revenue, fell the most in almost five years after saying it's increasing incentives to boost orders, reducing profitability as the broader new-home market stumbles.

Net income for the three months through June 30 fell to $113.1 million, or 32 cents a share, from $146 million, or 42 cents, a year earlier, the Fort Worth, Texas-based company said Thursday in a statement. The average estimate of 10 analysts was 49 cents a share, according to data compiled by Bloomberg.

D.R. Horton "is changing its operating strategy to target a certain pace of unit sales per community," Jay McCanless, an analyst with Sterne Agee & Leach Inc., said in a note to investors. "We see the downsides of this strategy as a higher likelihood of impairments, increased use of incentives and less predictability in quarterly results."

U.S. sales of newly built houses dropped 8.1 percent in June to a 406,000 annualized pace, the fewest since March and less than economists estimated, Commerce Department figures showed Thursday. May new home sales were revised downward to 442,000, 12.3 percent less than estimated. Home construction starts last month fell to an annual pace of 893,000, down 9.3 percent from May, led by a decline in Southern states, where D.R. Horton has been expanding.

D.R. Horton plunged almost 12 percent to $21.94 Thursday, the biggest decline since November 2009. The drop was the steepest in the 11-company Standard & Poor's Supercomposite Homebuilding Index, which fell 4.9 percent.

"The biggest impediment to the housing industry continues to be job growth," Chief Executive Officer Donald Tomnitz said on a conference call today. "Part-time workers are not looking for a house. They're looking for a full-time job."

D.R. Horton's home-sales gross margin in its fiscal third quarter was 20.7 percent, down from 21.4 percent a year earlier as the company increased incentives 90 basis points, or 0.9 percentage points. Margins will remain close to 20 percent as the company tries to push volume, Tomnitz said.

"Our number one focus is generating a 20 percent return on investment community by community," he said. "That requires us balancing our pace, our pricing, our incentives and our margin against volume to maximize, really, the return. And so, yes, we'll give some incentive to achieve a 25 percent sales increase."

Net orders rose to 8,551 homes worth $2.4 billion, a 25 percent increase in volume and 32 percent jump in value. The company's contract backlog, an indication of future sales, climbed 15 percent to 11,365 homes.

Homebuilding revenue rose to $2.1 billion in the quarter from $1.6 billion a year earlier. The number of completed home sales climbed 19 percent to 7,676.

PulteGroup Inc., the third-largest U.S. homebuilder by revenue, said today that second-quarter net income declined to 11 cents a share from 14 cents a year earlier. The results included 14 cents a share in charges resulting from insurance reserves and office-relocation costs. PulteGroup shares fell 3 percent to $19.24.

D.R. Horton also incurred $54.7 million in pretax charges in the quarter, related mainly to active communities in the Midwest region in Chicago, according to the statement. The charges reduced earnings by about 15 cents a share, Jack Micenko, an analyst with Susquehanna International Group, wrote in a note to clients Thursday.

In May, D.R. Horton acquired Crown Communities Inc., a closely held builder operating in Georgia, South Carolina and eastern Alabama, for $210 million. Last October, it paid $34.5 million for Regent Homes Inc., which builds in Charlotte, Greensboro and Winston-Salem, North Carolina.

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