Dream Homes & Development Corporation reported a decrease in revenue for the fiscal year ending December 31, 2024, with total revenues of $4.97 million, down from $5.66 million in 2023. Despite the decline in revenue, the company achieved a significant turnaround in profitability, posting a net income of $876,000 compared to a net loss of $97,000 in the previous year. This improvement was attributed to a substantial increase in gross profit, which rose to $2.26 million from $1.09 million, driven by a decrease in the cost of construction contracts from $4.57 million to $2.71 million.
The company has shifted its strategic focus towards land development and the sale of improved building lots to national builders, which is expected to yield future revenue growth. This strategic pivot is in response to market conditions, including a shortage of rental properties and increased lender preference for Build to Lease and Improved Lots for Sale developments. As part of this strategy, Dream Homes has transitioned two multi-family developments from Build for Sale to Build for Lease, anticipating that rental income will become a significant revenue stream.
Operationally, Dream Homes is currently managing five developments totaling 303 units, with ongoing projects in various stages of completion. The company has also entered into agreements with national builders for improved building sites, which are expected to close in the coming year. As of December 31, 2024, the company employed eight full-time staff members, including three officers, and has plans for further expansion in its workforce as development projects progress.
The company’s total assets increased to $11.52 million from $10.11 million, while total liabilities decreased to $8.64 million from $9.37 million, resulting in a significant increase in stockholders' equity from $738,000 to $2.89 million. The management expressed optimism about future growth, citing strong demand for affordable housing in New Jersey and the potential for increased market share in the Build to Lease segment. However, they acknowledged the inherent risks associated with the real estate market, including economic fluctuations and regulatory challenges.
Looking ahead, Dream Homes plans to continue its focus on new home construction and land development, leveraging its established relationships with modular manufacturers to drive growth in its custom modular segment. The company is also evaluating potential acquisitions to enhance its market position, although no definitive agreements have been made at this time. Management remains committed to addressing internal control weaknesses identified in their financial reporting processes, aiming to strengthen governance as the company grows.
About Dream Homes & Development Corp.
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