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Toll Brothers Partners with AECOM to Develop Union Place
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Toll Brothers, Inc. (TOL - Free Report) and AECOM announced plans to develop Union Place, a luxury rental community located in Washington, D.C.
The 14-storey, 525 residential unit project, located in the growing NoMa neighborhood, will be financed through a $130 million construction loan facility from U.S. Bank National Association and The Bank of New York Mellon.
The site’s location will provide its potential buyers easy access to Harris Teeter supermarket, over 55 restaurants, Union Station and to major NoMa district employment centers.
The project falls under Toll Brothers’ Apartment Living brand, through which it acquires and develops commercial and apartment properties. Toll Brothers Apartment Living, Toll Brothers Realty Trust and Toll Brothers Campus Living are brands offered under the company’s rental apartment projects. These rental projects operate in the lucrative markets of metro-Boston to metro-Washington, D.C. corridor and Atlanta.
Toll Brothers Apartment Living will be in charge of the building’s marketing, leasing and property management while AECOM Tishman, the construction subsidiary of AECOM, will supervise construction activities.
Recently, Toll Brothers reported adjusted earnings of 67 cents per share in the fourth quarter of fiscal 2016, missing the Zacks Consensus Estimate by 31.6%. Adjusted earnings, also, declined 16.3% year over year.
Revenues on the other hand increased 29% year over year in the fourth quarter on the back of an increase in home deliveries and average price of homes delivered. (read more: Toll Brothers Misses Earnings, Beats Revenues in Q4)
However, investors should note that shares of Toll Brothers declined 5% year to date, compared to the 3.8% decline for the Zacks categorized Building-Residential/Commercial industry. Estimates have gone down by 2% for the current year.
Nonetheless, the company expects its strong backlog, lower share count and contributions from joint ventures to significantly contribute to earnings per share in 2017.
Zacks Rank & Key Picks
Toll Brothers has a Zacks Rank #3 (Hold).
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc.(ROCK - Free Report) , Hovnanian Enterprises Inc.(HOV - Free Report) and AAON, Inc.(AAON - Free Report) .
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Toll Brothers Partners with AECOM to Develop Union Place
Toll Brothers, Inc. (TOL - Free Report) and AECOM announced plans to develop Union Place, a luxury rental community located in Washington, D.C.
The 14-storey, 525 residential unit project, located in the growing NoMa neighborhood, will be financed through a $130 million construction loan facility from U.S. Bank National Association and The Bank of New York Mellon.
The site’s location will provide its potential buyers easy access to Harris Teeter supermarket, over 55 restaurants, Union Station and to major NoMa district employment centers.
The project falls under Toll Brothers’ Apartment Living brand, through which it acquires and develops commercial and apartment properties. Toll Brothers Apartment Living, Toll Brothers Realty Trust and Toll Brothers Campus Living are brands offered under the company’s rental apartment projects. These rental projects operate in the lucrative markets of metro-Boston to metro-Washington, D.C. corridor and Atlanta.
Toll Brothers Apartment Living will be in charge of the building’s marketing, leasing and property management while AECOM Tishman, the construction subsidiary of AECOM, will supervise construction activities.
Recently, Toll Brothers reported adjusted earnings of 67 cents per share in the fourth quarter of fiscal 2016, missing the Zacks Consensus Estimate by 31.6%. Adjusted earnings, also, declined 16.3% year over year.
Revenues on the other hand increased 29% year over year in the fourth quarter on the back of an increase in home deliveries and average price of homes delivered. (read more: Toll Brothers Misses Earnings, Beats Revenues in Q4)
However, investors should note that shares of Toll Brothers declined 5% year to date, compared to the 3.8% decline for the Zacks categorized Building-Residential/Commercial industry. Estimates have gone down by 2% for the current year.
Nonetheless, the company expects its strong backlog, lower share count and contributions from joint ventures to significantly contribute to earnings per share in 2017.
Zacks Rank & Key Picks
Toll Brothers has a Zacks Rank #3 (Hold).
Better-ranked stocks in the construction sector include Gibraltar Industries, Inc.(ROCK - Free Report) , Hovnanian Enterprises Inc.(HOV - Free Report) and AAON, Inc.(AAON - Free Report) .
Gibraltar sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Full-year 2016 earnings for Gibraltar are expected to grow 44.9%.
Hovnanian, a Zacks Rank #2 (Buy) stock, is likely to witness 28.6% growth in fiscal 2017 earnings.
AAON carries a Zacks Rank #2. Full-year 2016 earnings for the company are expected to rise 21.4%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>