Dream Homes & Development Reports 38% Revenue Growth, Shifts Strategy to "Build for Lease" Model

Dream Homes & Development Corporation reported its financial results for the nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic direction compared to the same period in 2023.

For the three months ended September 30, 2024, revenue from construction contracts reached $2.2 million, a significant increase from $1.6 million in the prior year. For the nine-month period, revenue also rose to $4.3 million from $3.5 million. Gross profit for the third quarter was $1.4 million, up from $699,605 in 2023, while gross profit for the nine months decreased slightly to $1.2 million from $1.4 million. The company reported a net income of $925,632 for the third quarter, compared to $522,968 in the same quarter of the previous year. However, net income for the nine months fell to $59,167 from $585,126, reflecting challenges in the earlier part of the year.

Operating expenses showed a decrease, with selling, general, and administrative expenses for the third quarter dropping to $106,938 from $154,942 in 2023. For the nine-month period, these expenses decreased to $632,348 from $692,974. This reduction contributed to an increase in income from operations for the third quarter to $1.3 million, up from $543,088, although income from operations for the nine months declined to $540,629 from $686,293.

The company’s balance sheet reflects a decrease in total current assets, which fell to $2.4 million as of September 30, 2024, from $3.3 million at the end of 2023. Total assets also decreased to $9.5 million from $10.1 million. Current liabilities increased significantly to $5.0 million from $3.3 million, while total liabilities decreased to $7.5 million from $9.5 million. Notably, total stockholders’ equity rose to $2.1 million from $633,265, driven by an increase in additional paid-in capital, which grew to $3.7 million from $2.3 million.

Strategically, Dream Homes is transitioning from a "Build For Sale" model to a "Build for Lease" approach, responding to market demand and funding preferences. The company is currently involved in five developments totaling 367 units and is exploring opportunities in Build To Lease properties and improved lots for sale to national builders. This shift is expected to enhance revenue streams from leasing finished properties and selling improved lots.

Overall, while the company experienced growth in revenue and profitability in the third quarter, challenges in the nine-month results indicate a need for continued strategic adaptation in a changing market environment.