Core Insights - NVR, Inc. reported a net income of $342.7 million for Q3 2025, a decrease of 20% from $429.3 million in Q3 2024, with diluted earnings per share down 14% to $112.33 from $130.50 [1] - Consolidated revenues for Q3 2025 were $2.61 billion, down from $2.73 billion in Q3 2024, while revenues for the nine months ended September 30, 2025, totaled $7.61 billion, a 1% decrease from $7.68 billion in the same period of 2024 [1][3] Homebuilding Segment - New orders in Q3 2025 decreased by 16% to 4,735 units compared to 5,650 units in Q3 2024, while the average sales price of new orders increased by 3% to $464,800 [2] - The cancellation rate rose to 19% in Q3 2025 from 15% in Q3 2024, and settlements decreased by 5% to 5,639 units [2] - Homebuilding revenues for Q3 2025 were $2.56 billion, a 4% decrease from $2.68 billion in Q3 2024, with gross profit margin declining to 21.0% from 23.4% [3] Mortgage Banking Segment - Mortgage closed loan production in Q3 2025 totaled $1.54 billion, a decrease of 7% from $1.66 billion in Q3 2024, with income before tax from the mortgage banking segment down 6% to $32.7 million [4] - The effective tax rate for the three and nine months ended September 30, 2025, was 22.8% and 24.5%, respectively, compared to 20.3% and 20.6% for the same periods in 2024 [4] Financial Performance - For the nine months ended September 30, 2025, net income was $976.0 million, a decrease of 20% from $1.22 billion in the same period of 2024, with diluted earnings per share down 14% to $315.33 [1][4] - The backlog of homes sold but not settled as of September 30, 2025, decreased by 19% to 9,165 units, with a dollar value decrease of 17% to $4.39 billion compared to the same date in 2024 [2]

Financial Performance - Net sales orders decreased by 13% year-over-year, from 2,830 in 3Q 2024 to 2,468 in 3Q 2025[12] - Home closings revenue, net, decreased by 1%, from $2.029 billion in 3Q 2024 to $2.001 billion in 3Q 2025[12] - Home closings decreased by 2%, from 3,394 in 3Q 2024 to 3,324 in 3Q 2025[12] - Home closings ASP increased by 1%, from $598,000 in 3Q 2024 to $602,000 in 3Q 2025[12] - Reported diluted EPS decreased by 15%, from $2.37 in 3Q 2024 to $2.01 in 3Q 2025[12] - Adjusted diluted EPS decreased by 12%, from $2.40 in 3Q 2024 to $2.11 in 3Q 2025[12] - Book value per share increased by 15%, from $53.95 in 3Q 2024 to $61.95 in 3Q 2025[12] - The company has $1.3 billion in total liquidity[13] Land and Lots - The company has 84,564 total homebuilding lots, with 60% controlled[13] - The total lot supply is equivalent to 6.4 years, with 2.6 years owned[13] - Homebuilding land investment is expected to total approximately $2.3 billion in 2025[15, 53] Geographic Footprint - The West region accounts for 36% of home closings and 44% of home closings revenue, with an ASP of $723,000 and a gross margin of 22.1%[18] - The Central region accounts for 23% of home closings and 19% of home closings revenue, with an ASP of $511,000 and a gross margin of 21.5%[18] - The East region accounts for 41% of home closings and 37% of home closings revenue, with an ASP of $544,000 and a gross margin of 22.5%[18]

Core Viewpoint - The housing market is facing challenges due to a perceived demand problem rather than a supply problem, which could negatively impact housing companies like KB Home [2][4] Company Analysis - KB Home has been downgraded by analysts amid concerns about the housing market and government policies aimed at increasing supply [2][3] - Despite the downgrade, there is a belief that housing stocks, including KB Home, could trade at higher multiples in the long term due to improved operations and competitive advantages [3][4] Industry Insights - Analysts argue that the current focus on supply-side solutions by the government may not address the underlying demand issues in the housing market [2] - The performance of builders like KB Home is being compared to peers, with the expectation that they will eventually receive a revaluation to higher multiples due to their operational improvements [4]

Core Viewpoint - The recent downgrade of DR Horton Inc (NYSE:DHI) by analysts is attributed to concerns over the U.S. government's focus on supply-side solutions to housing affordability, which may negatively impact homebuilders [1][2]. Company Summary - DR Horton Inc (NYSE:DHI) is the largest homebuilder in the U.S., holding approximately 10% market share and benefiting from scale advantages in a fragmented industry [3]. - The company was noted as the best-performing holding in the Consumer Discretionary sector for Heartland Mid Cap Value Fund in the third quarter of 2025, indicating strong performance despite the downgrade [3]. Industry Summary - Analysts believe that the current housing market faces a demand problem rather than a supply problem, contradicting the government's view that a national housing deficit is due to insufficient home construction [2]. - The government's perception that builders are intentionally limiting home production to maintain profitability could lead to misguided policies that do not address the actual demand issues in the housing market [2].

Core Insights - M/I Homes, Inc. reported a pre-tax income of $139.8 million and a net income of $106.5 million for Q3 2025, reflecting a decline from the previous year's record results [3][8] - The company delivered a record 2,296 homes in Q3 2025, a 1% increase from Q3 2024, but new contracts decreased by 6% year-over-year [4][8] - The backlog of homes at the end of Q3 2025 had a total sales value of $1.21 billion, down 30% from the previous year, with a significant decrease in backlog units [4][8] Financial Performance - Revenue for Q3 2025 declined by 1% to $1.1 billion, with a gross margin of $270.1 million [8][9] - Pre-tax income was $140 million, representing 12% of revenue, down 26% from the previous year, which included a $7.6 million inventory charge [3][8] - Net income per diluted share was $3.92, compared to $5.10 in Q3 2024 [3][8] Operational Metrics - Homes delivered in the first nine months of 2025 totaled 6,620, slightly down from 6,653 in the same period of 2024 [4][8] - The cancellation rate increased to 12% in Q3 2025 from 10% in Q3 2024 [4][8] - The average sales price of homes in backlog was $553,000, up from $544,000 a year ago [4][8] Market Position and Outlook - The company maintained a strong financial position, highlighted by an upgrade from Moody's to Ba1 and an extension of its unsecured credit facility to 2030 with increased borrowing capacity [5][8] - M/I Homes had 233 communities as of September 30, 2025, compared to 217 communities a year earlier [4][8] - The CEO expressed confidence in the long-term fundamentals of the housing industry despite current market volatility [5][8]

Core Insights - The Baron Real Estate Fund achieved a 10.25% increase in the third quarter, outperforming both the MSCI US REIT Index (4.49%) and the MSCI USA IMI Extended Real Estate Index (5.65%) [2] - The Fund's long-term performance remains strong, ranking in the top percentiles across various time frames according to Morningstar [3][5] - The Fund's cumulative return since inception (December 31, 2009) is 629%, significantly higher than the REIT Index (230%) and the MSCI Real Estate Index (432%) [7] Performance Metrics - The Fund's annualized performance as of September 30, 2025, shows: - QTD: Institutional Shares +10.25%, Retail Shares +10.20% - YTD: Institutional Shares +6.59%, Retail Shares +6.40% - 1 Year: Institutional Shares +3.42%, Retail Shares +3.15% - 3 Years: Institutional Shares +16.75%, Retail Shares +16.45% - 5 Years: Institutional Shares +9.27%, Retail Shares +8.99% - 10 Years: Institutional Shares +11.41%, Retail Shares +11.13% - 15 Years: Institutional Shares +13.30%, Retail Shares +13.02% - Since Inception: Institutional Shares +13.44%, Retail Shares +13.16% [6] Investment Themes - The Fund's key investment themes include: - REITs: 27.2% of net assets, with a focus on sectors with strong demand and limited new supply [24][27] - Non-REITs: 71.0% of net assets, including categories such as Building Products/Services (19.6%) and Real Estate Service Companies (14.8%) [24] - The Fund identifies compelling opportunities in sectors like residential-related real estate, travel-related real estate, and commercial real estate services [32][39][42] Market Outlook - The Fund remains optimistic about public real estate, citing improving business fundamentals and favorable demand conditions [10][20] - Positive comments from executives of leading real estate companies indicate a potential recovery in real estate values and fundamentals [11][12][13][14][15][16] - The current real estate landscape is characterized by limited new construction, solid balance sheets, and a favorable supply-demand dynamic [25][72] Top Contributors and Detractors - Top contributors to the Fund's performance in the recent quarter include: - Wynn Resorts, Limited: +1.20% - Jones Lang LaSalle Incorporated: +0.96% - CRH public limited company: +0.95% [48] - Top detractors include: - American Tower Corporation: -0.46% - Airbnb, Inc.: -0.17% [57] Recent Activity - The Fund initiated positions in Iron Mountain Incorporated and AAON, Inc., citing attractive valuations and growth prospects [62][64] - The Fund exited its position in Independence Realty Trust, reallocating capital to companies with more favorable return prospects [70]

Accessibility StatementSkip Navigation All comparisons are of the current quarter to the prior-year quarter, unless indicated. Homebuilding Land Portfolio SCOTTSDALE, Ariz., Oct. 22, 2025 /PRNewswire/ --Â Taylor Morrison Home Corporation (NYSE: TMHC), a leading national land developer and homebuilder, announced results for the third quarter ended Sept. 30, 2025. Reported net income was $201 million, or $2.01 per diluted share, while adjusted net income was $211 million, or $2.11 per diluted share. Third qua ...

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Core Insights - Century Communities, Inc. has launched new tri-level townhomes in American Fork, Utah, with a Grand Opening event held on October 18, 2025, showcasing model tours and promotional savings opportunities [1][3]. Company Overview - Century Communities is recognized as a leading national homebuilder and an industry leader in online home sales, having been featured on Newsweek's lists of America's and the World's Most Trustworthy Companies [1][9]. - The company operates in 16 states and over 45 markets across the U.S., providing a range of services including mortgage, title, insurance brokerage, and escrow services through its subsidiaries [9]. Product Offering - The new townhomes, part of the Highland at American Fork community, feature two model plans: Manhattan and Keansburg, with prices starting from the mid $400s [2][4]. - Each tri-level townhome offers up to 2,163 square feet, 4 bedrooms, 3.5 bathrooms, and 2-bay garages, along with modern amenities such as quartz countertops, LG kitchen appliances, and integrated smart home technology [3][6]. Community Features - The community includes amenities like a playground, open turf play area, and cornhole, and is conveniently located near major cities such as Lehi, Provo, and Salt Lake City, with quick access to I-15 [6]. Online Homebuying Experience - Century Communities offers an innovative online homebuying experience, allowing potential buyers to shop for homes, fill out forms, and electronically sign contracts [5][7].

Core Insights - Toll Brothers, Inc. has launched its new luxury home community, Chapel Oaks, in the Raleigh area, featuring a model home currently under construction [1] - The community offers modern home designs with floor plans ranging from 4,050 to over 5,200 square feet, priced from $1.06 million [2] Group 1: Community Features - Chapel Oaks includes homes with 4 to 5 bedrooms and 2 to 4-car garages, designed with spacious great rooms and options for multigenerational living [2] - The community is located less than three miles from downtown Chapel Hill, providing easy access to shopping, dining, and recreational activities [5] Group 2: Customer Experience - Toll Brothers provides a one-stop shopping experience at its Design Studio, allowing customers to personalize their homes with professional assistance [3] - The community is positioned to attract families due to its proximity to top-rated schools and outdoor recreational areas [5] Group 3: Company Overview - Toll Brothers is a Fortune 500 Company, established in 1967, and operates in over 60 markets across 24 states [8] - The company has received multiple accolades, including being named one of Fortune's World's Most Admired Companies for over 10 years [9]