LGI Homes (LGIH) Boosts Oklahoma Presence With New Community
LGI Homes, Inc. LGIH recently announced the opening of its brand-new community — Tuscany Lakes— in Yukon, OK. The community, presently under construction and in a prime locality, will offer four homes with spacious one- and two-story floor plans and access to several nearby amenities.
The affordability of the homes and exclusive features are likely to attract potential homebuyers amid the rebounding demand for commercial real estate, making LGIH’s move a strategic fit.
Shares of this real estate development company witnessed a marginal loss in the Oct 11 normal trading session on the NYSE.
Tuscany Lakes will comprise homes in sizes ranging from 1,286 square feet with three bedrooms to just more than 1,900 square feet with four bedrooms. The pricing of these homes starts in the $270s with move-in ready, upgraded homes available now.
The homes in the company’s newest community will be equipped with the LGI Homes’ CompleteHome™ package. The interior upgrades will include a full suite of energy-efficient Whirlpool® appliances, granite countertops, designer wood cabinetry with crown molding detail and luxury vinyl plank flooring, to name a few. Two attached car garages with an installed Wi-Fi-enabled door will be an added feature.
Further, with quick and easy access to downtown Oklahoma City and a variety of employers, highly rated schools and local shopping and dining opportunities, Tuscany Lakes seems like an attractive buy for future homeowners. Also, they will soon be able to enjoy access to incredible neighborhood amenities, including a new community park and a basketball court.
LGIH, a Woodlands, TX-based company, is a pioneer in the homebuilding industry, engaged in the design, construction and sale of homes across 35 markets in 20 states through an innovative and systematic approach. Notably, the company has closed more than 65,000 homes since its founding in 2003.
Recently, marking its 21st state of operation, the company announced the opening of its first community, Oquirrh Mountain Ranch, in the Salt Lake City market of Utah. Homes here are priced starting in the $460s and are now open for sale. The community boasts a range of floor plans with modern features, superior construction quality and a variety of layouts to satisfy the needs of its residents.
The increase in demand for new-age real estate developments and the company’s continued efforts to reduce the cost of homeownership through a combination of mortgage buy-down programs and other sales incentives are likely to drive its sales volume in the upcoming period.
Nonetheless, a cautious investor approach amid macroeconomic activity and a high-interest rate environment is worrisome. Also, increased construction costs amid supply-chain constraints pose concerns for the company.
LGIH currently carries a Zacks Rank #4 (Sell).
Its shares have lost 27.5% in the past three months compared with the industry’s decline of 18.2%.
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Stocks to Consider
Some better-ranked stocks from the broader real estate industry are Welltower WELL, Boston Properties BXP and Vornado Realty Trust VNO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2023 funds from operations (FFO) per share has been revised marginally upward over the past month to $3.56.
The Zacks Consensus Estimate for Boston Properties’ ongoing year’s FFO per share has been increased marginally over the past month to $7.30.
The Zacks Consensus Estimate for Vornado Realty’s current-year FFO per share has moved 1.2% northward over the past month to $2.59.
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