CELEBRATION, FL - La Rosa Holdings Corp. (NASDAQ:LRHC), known for its technology-integrated real estate services, has fully acquired BF Prime LLC, a Carolina, Puerto Rico-based franchisee offering brokerage and agent support services. Announced today, this move is part of La Rosa's strategic growth and introduces its multi-level revenue share plan, the Ultimate Plan, to Puerto Rico's real estate market.
The Ultimate Plan, a five-level income model, is designed to provide real estate professionals with a sustainable income by earning from direct and indirect referrals. This acquisition aligns with La Rosa's expansion efforts and the company's target of reaching a $100 million annualized revenue rate by the end of 2024.
La Rosa is also set to host the "Discover the La Rosa Difference" event on Thursday, October 17th, at the Hyatt Place Bayamón in Puerto Rico. The event aims to attract real estate agents to the company's growing network, which already includes over 600 agents in Puerto Rico.
Joe La Rosa, CEO of La Rosa Holdings, expressed optimism about Puerto Rico's real estate market, which is projected to be valued at $389.7 billion by 2029, with the residential segment expected to reach $253.7 billion in 2024. The demand for luxury beachfront properties, especially from international buyers, is anticipated to contribute to this growth.
La Rosa's presence in the Hispanic community in Florida has established the company as a trusted partner in real estate. The company plans to replicate this success in Puerto Rico, providing agents with an innovative compensation system that combines a 100% commission model with a structured revenue share plan.
La Rosa Holdings offers a range of services, including residential and commercial real estate brokerage, franchising, education, coaching, and property management. It operates 23 corporate offices and branches across Florida, California, Texas, Georgia, and Puerto Rico, along with 14 franchised and two affiliated offices.
The company's growth strategy involves organic revenue expansion and the integration of acquired franchisees, with expectations of profitability by 2025. This press release statement is based on the company's current expectations and is subject to risks and uncertainties that could affect future performance.
In other recent news, La Rosa Holdings Corp. has revealed plans to venture into commercial real estate ownership through the acquisition of Celebration Corporate Center LLC. The transaction is expected to close in the third quarter of 2024, and it is anticipated to contribute to a projected 30% annual growth rate in properties under management. In addition, the company aims to acquire a controlling interest in Red Door Title, a full-service title company, which is expected to be finalized by the end of July.
La Rosa Holdings Corp. has also updated its insider trading policy, redefining the terms "Blackout Period" and "Window Period" to better regulate trading by company insiders. This move is part of the firm's effort to ensure compliance with insider trading laws and maintain the integrity of its financial reporting.
The company also announced the appointment of Lourdes Felix, the former CEO of BioCorRx Inc., to its Board of Directors. Felix, who brings 30 years of experience in finance and corporate management, will also serve as the Chairperson of the Audit Committee and a member of the Compensation and Nominating and Corporate Governance Committees.
These recent developments are part of La Rosa's strategy to expand its services and establish itself as a significant player in the real estate industry. The company has reaffirmed its goal to achieve an annualized revenue run rate of $100 million by the end of 2024 and reach profitability by 2025.
InvestingPro Insights
La Rosa Holdings Corp. (NASDAQ:LRHC) has taken significant strides in expanding its business model, as evidenced by the recent acquisition of BF Prime LLC. The integration of the Ultimate Plan into the Puerto Rican market signals a strategic push for growth. Yet, it's important for investors to consider the financial health and market performance of La Rosa as they assess the potential of this expansion.
InvestingPro data shows that La Rosa has a market capitalization of $16.83 million, which reflects the size of the company in terms of market value. Despite an impressive revenue growth of 96.32% over the last twelve months as of Q2 2024, La Rosa's stock has experienced a significant downturn, with a one-year price total return of -70.0%. This aligns with one of the InvestingPro Tips indicating that the stock has fared poorly over the last month, with a one-month price total return of -31.82%.
Moreover, La Rosa's financial metrics reveal challenges, such as a negative P/E ratio of -0.8 and a gross profit margin of 8.53%, which suggests weak profitability. This supports another InvestingPro Tip that highlights the company's weak gross profit margins. Additionally, the company is trading at a low revenue valuation multiple, which could be seen as an indicator of undervaluation by some investors.
For those interested in diving deeper into La Rosa Holdings' financials and stock performance, there are 11 additional InvestingPro Tips available, which can provide a more comprehensive view of the company's strengths and weaknesses. These can be accessed at: InvestingPro.
As La Rosa Holdings continues to pursue its ambitious revenue target and expansion into new markets, keeping a close eye on these financial metrics and market performance indicators will be crucial for investors looking to understand the potential risks and rewards associated with the company's growth strategy.
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