The Face of the Southwest Florida Housing Market

WCI Communities Inc., the embattled home builder, might be the publicly traded face of the Southwest Florida real estate market at the moment.

The builder, which recently settled a takeover battle with Carl Icahn, said it swung a loss in the second quarter on the effects of the lingering Southwest Florida housing market meltdown.

The company, which builds houses and apartments in planned communities, including some in Sarasota and Manatee County, reported a loss of $33.2 million, compared with a profit of $22.7 million a year ago.

The latest quarter included a gain of $11.5 million, or 27 cents a share, from the sale of a building.

Excluding items, the loss from continuing operations was $1.07 per share, compared with a profit of 50 cents per share last year.

Revenue plunged 54 percent to $241.8 million from $527.7 million. Analysts expected a loss of 96 cents per share on revenue of $225 million.

WCI’s projects in Southwest Florida include the Tidewater Preserve and Waterlefe in Manatee County, and the Venetian Golf Club in Venice.

The Florida home builder’s shares, which trade on the New York Stock Exchange, were selling for $7.72 at the close of regular trading on Wednesday, down 23 cents.

WCI recently agreed to add Carl Icahn and two of his nominees to its exec board, ending a move by the investor to replace the entire slate of directors.

Icahn had offered to buy the company but the board rejected his bid, saying it was too low. The firm continues to struggle with low Florida home mortgage loan activity and sales in the current market.

SOURCE: Sarasota Herald Tribune