D.R. Horton, Inc. (NYSE:DHI), through its wholly-owned subsidiary DHI Mortgage Company, Ltd., has amended its existing master repurchase agreement, extending its term and continuing to provide financing for its mortgage operations. The amendment, effective as of Thursday, extends the facility until May 9, 2025, or earlier if terminated by governmental order or law.
The Third Amendment to the Fourth Amended and Restated Master Repurchase Agreement, originally dated February 18, 2022, involves U.S. Bank National Association as administrative agent and buyer, along with other buyers. This facility allows DHI Mortgage to transfer eligible loans to the buyers in exchange for funds, facilitating liquidity and financing.
D.R. Horton, categorized under the Operative Builders Standard Industrial Classification, is a prominent player in the real estate and construction sector. The company's business address is in Arlington, Texas, with the fiscal year ending on September 30.
In other recent news, D.R. Horton, a renowned homebuilding company, has been making significant strides in its financial performance. The company's third fiscal quarter earnings per share (EPS) of $4.10 exceeded projections, attributed to increased homebuilding gross margin and average selling price, along with improved rental pre-tax income.
In a bid to raise substantial capital, D.R. Horton finalized the sale of $700 million in senior unsecured notes with a 5% interest rate, due in 2034. The notes, guaranteed by most of the company's homebuilding subsidiaries, are set to pay interest semi-annually starting April 15, 2025.
In addition, D.R. Horton has initiated a new share repurchase program worth up to $4 billion, indicating its robust financial health and business confidence. The company anticipates an increase in operating cash flow and share repurchases in the fiscal year 2025. Jefferies, a financial services company, has maintained a Buy rating on D.R. Horton, adjusting its EPS forecasts based on these recent developments.
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