ALSO READLennar revenue beats on higher home sales; orders rise U.S. single-family housing starts, permits hit 10-year highs Lennar buys CalAtlantic to become largest U.S. homebuilder Lennar to buy CalAtlantic, forming largest homebuilder in U.S Homebuilder Lennar to buy CalAtlantic Group in $9.3 billion deal
By Ankit Ajmera
The company said proceeds from the deal would now benefit from lower taxes, but its shares fell about 1.7 percent in premarket trading.
Orders rose 11.5 percent, with buyers signing up for 7,357 homes in the quarter ended Nov. 30.
The average selling price for home deliveries rose 8.4 percent to $388,000 for the fourth quarter.
Lennar's orders have climbed for seven straight years on a year-over-year basis, as the U. S. housing market recovered from the sub-prime crash of 2007-2008.
"General enthusiasm for the strength of the economy, combined with the added tailwinds of recent tax law changes, continue to propel the housing market forward."
In October, Lennar agreed to buy smaller rival CalAtlantic Group Inc for $5.7 billion in a deal that will make it the largest homebuilder in the United States and give it more tools to deal with higher labor and land costs.
The move reflected the pressure on builders due to a shortage of skilled labor that is constraining the supply of homes and pushing costs up even as U. S. house prices rise for a seventh straight year.
Net income attributable to Lennar fell 1.2 percent to $309.6 million, or $1.29 per share, missing the average estimate of $1.48 per share.
A loss of about $12 million in Lennar's Rialto business, which manages commercial real estate and financing, also dented profits during the quarter. Some analysts had expected a gain of about $5 million at the business that accounts for about 2 percent of the total revenue.
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