D. R. Horton

D. R. Horton
Public
Traded as NYSE: DHI
S&P 500 Component
Industry Home construction
Founder Donald R. Horton (Founder & Chairman)
Headquarters Arlington, Texas[1], United States
Key people
  • David Auld (CEO)
  • Michael Murray (COO)
  • Bill Wheat (CFO)
Divisions
  • Emerald Homes
  • Express Homes[2]
Website www.drhorton.com

D. R. Horton is the largest home construction company in the United States based on its 37,380 houses sold (up 26% year over year) and closed 36,648 (up 28% year over year) in fiscal year 2015. D.R. Horton posted revenues of $10.7 billion in 2015.[3] D. R. Horton was founded in 1978 by Donald R. Horton in the Dallas–Fort Worth metroplex. The company's headquarters moved from Downtown Fort Worth to a newly constructed 200,000 square foot, four-story building in Arlington, Texas in 2017. D. R. Horton operates three separately branded divisions: Emerald Homes, Express Homes, and Freedom Homes. Express Homes is tailored to entry-level buyers while the Emerald Homes brand is sold as luxury real estate.[4][5] In July 2016, D.R. Horton announced the launch of their Freedom Homes division.[6] The communities will be built as active adult housing and are set to be debuted in Florida, Illinois,Texas and Arizona.[7]

D.R. Horton's geographic exposure extends from Texas to the Southeast, Mid-Atlantic, West Coast and Southwest. The company has minimal exposure in the upper Midwest and Northeast. Single-family detached homes accounted for 91% of D.R. Horton's sales in 2013. The company also builds condominiums, town homes, and multi-family residences. D.R. Horton also operates a financial arm, which provides mortgage financing and ancillary services such as title agency services. The company doesn't maintain mortgage exposure on its balance sheet. It immediately sells the loans to third parties. Also, most of the company’s loans are agencies—Ginnie Mae and Freddie Mac. Financial services account for about 3% of D.R. Horton’s revenues.[8]

In April 2015, D. R. Horton expanded its operations in the Pacific Northwest with a $72 million purchase of the homebuilding operations of Pacific Ridge Homes in Seattle, Washington.[9] The acquisition included 350 lots, 90 homes in inventory and 40 homes in sales order backlog. Horton also acquired control of about 400 lots through option contracts.[10]

In May 2015, D. R. Horton received approval from the Honolulu City Council to begin construction on a 11,750-home master-planned community in West Oahu, Hawaii.[11]

On September 6, 2016, D. R. Horton announced their acquisition of Wilson Parker Homes.[12] The company paid $90 million in cash for Wilson Parker Homes and its assets, which included 490 lots, 390 homes in inventory and 300 homes in sales order backlog.[13]

Controversy

The company has been involved in a closely followed National Labor Relations Board case involving a mandatory arbitration agreement provision relating to the waiver of rights to bring a class or collective action to resolve employment disputes in D.R. Horton, Inc. v. National Labor Relations Board, No. 12-60031 (Dec. 3, 2013).[14]

Lawsuits surrounding Hydraulic fracturing in the town of Denton, Texas have brought the company in proximity to legal actions taken against the city and local drilling companies. Residents allege that the town council permitted the company to build houses as close at 250 feet to the gas wells after the city had banned drilling within 1200 feet of residences.[15]

References

  1. ↑ http://www.star-telegram.com/news/business/biz-columns-blogs/baker-ahles-kaskovich/article127813294.html
  2. ↑ Hudson, Kris (April 29, 2014). "Texas Builder Tests the Merits of Pace Over Price". The Wall Street Journal. Retrieved May 10, 2015.
  3. ↑ "2014 - Builder's Top 100". Hanley Wood Media, Inc. Retrieved May 10, 2015.
  4. ↑ Hudson, Kris (January 26, 2015). "Why Home-Builder D.R. Horton’s Shrinking Margins Might Be Good For the Rest of Us". The Wall Street Journal. Retrieved May 10, 2015.
  5. ↑ "Ten Questions for Emerald Homes". SoWal. Moon Creek Studios. January 7, 2014. Retrieved May 10, 2015.
  6. ↑ Baker, Max (July 26, 2016). "D.R. Horton targets seniors with affordable housing brand". Star-Telegram. Retrieved August 10, 2016.
  7. ↑ Shaver, Les (July 26, 2016). "Horton Launches Affordable Active Adult Brand". Builder. Retrieved August 10, 2016.
  8. ↑ Nyitray, Brent. "Overview of home builder D.R. Horton". Market Realist. Market Realist, Inc. Retrieved November 21, 2014.
  9. ↑ Maurus, Christine (April 27, 2015). "D.R. Horton to buy Pacific Ridge Homes in Seattle-area expansion". The Seattle Times. Retrieved May 10, 2015.
  10. ↑ Carlisle, Candace (April 27, 2015). "Homebuilding giant D.R. Horton gets bigger with $72M acquisition". Dallas Business Journal. Retrieved May 10, 2015.
  11. ↑ Shimogawa, Duane (May 7, 2015). "D.R. Horton gets OK for 11,750-home Hoopili project in West Oahu". Pacific Business News. Retrieved May 10, 2015.
  12. ↑ Allison, David (September 6, 2016). "D.R. Horton acquires homebuilding operations of Wilson Parker Homes". Atlanta Business Chronicle. American City Business Journals. Retrieved September 6, 2016.
  13. ↑ Lane, Ben (September 6, 2016). "D.R. Horton expands, buys Wilson Parker Homes". Housing Wire. HW Media, LLC. Retrieved September 6, 2016.
  14. ↑ Sledz Jr., Henry W.; Schiff Hardin LLP (December 9, 2013). "Fifth Circuit Overrules National Labor Relations Board's (NLRB) D.R. Horton Decision". The National Law Review. Retrieved December 13, 2013.
  15. ↑ Halperin, Alex. "Texas: When fracking comes to town".
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