Pulte Divests Assets in Denver

PulteGroup Inc. (PHM - Analyst Report) recently announced that it has sold a 1,700 acre master-planned community located in Denver to Greenwich-based privately held real estate investment firm Wheelock Street Capital LLC. The financial terms of the deal as well as the terms of the agreement were not disclosed.

The cash obtained will enable Pulte to invest in other potential opportunities as per management’s long-term growth strategy. 

In the last reported quarter, Pulte reported an adjusted income of $43 million or 11 cents per share compared with the adjusted loss of $56 million or 11 cents per share in the year-ago quarter. Total revenue increased 7.5% to $1.14 billion from $1.06 billion in the year-ago period, attributable to better performances by both the company’s operating segments.

Pulte had cash and cash equivalents of $1.14 billion as of September 30, 2011 compared with $1.47 billion as of December 31, 2010. The company used $163.7 million of cash in operating activities in the first nine months of 2011, while in the year-ago period it generated $798.6 million from operations.

Pulte continues to focus on increased product offerings, cost-reduction initiatives, further margin expansion and sustained overhead leverage. Moreover, the acquisition of Dallas-based Centex Corporation in August 2009 has helped the company to emerge as the nation's largest homebuilder (by units and as well as revenues), surpassing D.R. Horton Inc. (DHI - Analyst Report).

The combined company caters to 59 markets, including 29 states and the District of Columbia. It also provides access to states like Texas, North Carolina and South Carolina, which have shown comparatively strong new home sales despite the housing slump.

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