Conversion-Related Debt Reduced by $40 Million
NEW YORK, July 10 /PRNewswire-FirstCall/ -- Tarragon Corporation
(Nasdaq: TARR), a leading developer of multifamily housing for rent and for
sale, today announced that it wrote 342 net orders at its condominium
conversion properties in the second quarter of 2007 totaling $57.6 million
at an average sale price of $168,000, compared with 174 net orders totaling
$32.7 million for the first quarter in 2007 at an average sale price of
$188,000. Tarragon delivered 308 condominium conversion homes in the second
quarter of 2007 representing $53.7 million in sales compared to 264
conversion homes representing $47.8 million in the first quarter of 2007.
Overall, in the second quarter of 2007 Tarragon delivered a total of
442 homes representing over $115 million in sales, compared to 353 homes
representing $83 million in the first quarter 2007. Tarragon wrote a total
of 353 net orders totaling $64.7 million in the second quarter of 2007
compared with 283 net orders totaling $84.7 million for the first quarter
of 2007.
For the calendar year, Tarragon presently expects to reduce
consolidated debt on condominium conversion communities by over $100
million, and unconsolidated conversion debt by $22 million, while repaying
$130 million in debt on newly built, for-sale developments and $190 million
on rental apartment developments.
At the end of the second quarter, the Company's non-cancelable
contractual backlog was $195 million, or 558 homes, compared to $246
million, or 647 homes, at the end of the first quarter of 2007.
Tarragon Chairman and Chief Executive Officer William Friedman
commented, "We are very pleased that, despite the continuing avalanche of
negative publicity about the real estate market in Florida, our sales
efforts produced nearly double the rate of sales in our Florida conversion
communities during the second quarter compared to the first. The increase
is due to value pricing, promotions and the latent demand for quality
housing in the growing markets where we are selling homes. In addition,
over the first six months of 2007 we have repaid $70 million of
consolidated and unconsolidated conversion- related debt, putting us ahead
of our $125 million target for the year. We expect to maintain this
aggressive sales approach as we execute our strategy to improve our balance
sheet before, and after, the spin-off of our homebuilding business."
Additional Information About the Spin-Off Transaction
Tarragon has filed a preliminary proxy statement with the Securities
and Exchange Commission related to the proposed pro rata, tax-free spin-off
of its homebuilding business as an independent, publicly traded company.
The transaction, which is subject to shareholder approval, is expected to
be completed during the third quarter of 2007. Following the spin-off,
Tarragon will change its name to Sage Residential, Inc. Sage will continue
to operate its real estate services business, which provides asset and
property management, leasing and renovation services to residential and
commercial properties. Tarragon's homebuilding and development business
will be renamed Tarragon Corporation.
A definitive proxy statement, which may contain additional or different
information from that contained in the preliminary proxy statement, will be
filed with the SEC and mailed to Tarragon's stockholders prior to the
stockholders' meeting related to the spin-off transaction. Stockholders are
urged to read carefully the definitive proxy statement, when it becomes
available, as it will contain important information that stockholders
should consider before making a decision about the spin-off transaction and
related matters. In addition to receiving the definitive proxy statement
from Tarragon in the mail, stockholders will be able to obtain the
definitive proxy statement, when it becomes available, the preliminary
proxy statement and other filings containing information about Tarragon,
the spin-off transaction and related matters, without charge, at the SEC's
web site (http://www.sec.gov). Documents filed with the SEC by Tarragon
will also be available free of charge at Tarragon's web site
(http://www.tarragoncorp.com). Stockholders may obtain copies of these
documents without charge by requesting them in writing from Tarragon
Corporation, 3100 Monticello Ave., Ste. 200, Dallas, TX, 75205, or by
telephone at (214) 599-2200.
Tarragon and its executive officers and directors may be deemed to be
participants in the solicitation of proxies from Tarragon's stockholders
with respect to the proposed spin-off transaction. Information regarding
any interests that Tarragon's executive officers and directors may have in
the transaction is set forth in the preliminary proxy statement and will be
included in the definitive proxy statement, when it becomes available.
About Tarragon Corporation
Tarragon Corporation is a leading developer of multifamily housing for
rent and for sale. The Company's operations are concentrated in the
Northeast, Florida, Texas and Tennessee. To learn more about Tarragon
Corporation, visit: http://www.tarragoncorp.com
Forward-looking Statements
Information in this press release includes forward-looking statements
made pursuant of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Actual results and the timing of certain
events could differ materially from those projected or contemplated by the
forward-looking statements due to a number of factors, including, but not
limited to, general economic conditions, interest rates, weather, the
availability of financing for development and acquisition, risks associated
with the proposed spin-off of the Company's homebuilding division as
described in the Company's SEC filings relating to the transaction, and
other risk factors outlined in the Company's SEC reports, including its
Annual Report on Form 10-K. The Company assumes no responsibility to update
forward-looking information contained herein.
TARR-E
SOURCE Tarragon Corporation
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Related links:
http://www.tarragoncorp.com
CONTACT:
William S. Friedman of Tarragon Corporation,
+1-212-949-5000, wfriedman@tarragoncorp.com; or Alan H. Oshiki of
Broadgate Consultants, LLC, +1-212-232-2222,
aoshiki@broadgate.com, for Tarragon Corporation
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