FORKED RIVER, NJ, April 19, 2022 (GLOBE NEWSWIRE) — Dream Homes & Development Corporation (OTCPK: DREM) (also known as “DHDC”), announces that it has filed Form 10-K Annual Report for the year ended December 31, 2021 and is now available in the 2021 DREM Annual Report.
New developments with signed letters of intent, along with four company-owned developments, represent over $108 million in planned new home construction projects. This work is expected to take place over the next 3-4 years and is in addition to the company’s elevation/renovation division. Management is very positive about these new developments, as well as the advanced building technologies being used to create healthier, safer and more energy efficient homes. Dream Homes also saw solid growth in the new home and elevation divisions.
A new trend in the real estate market that has seen significant growth over the past year is the emerging “Build To Lease” trend. This focus on building single-family and multi-family developments with the intention of renting them out immediately upon completion is due to several factors. One of the factors is the extreme shortage of rental properties on the market, not only for new owners, but also for retirees and young professionals who are unsure of their intentions to settle in one place.
The second factor is the overall preference of the lender and funding source to lend to Build To Lease developments, as opposed to more traditional Build To Sell developments due to the perception of Build To Lease as a safer long-term investment. Finally, the extraordinary amount of interest from non-traditional sources such as pension funds and hedge funds, insurance companies and venture capitalists for the purchase of new completed For Lease developments at attractive measures based on capitalization rates has stimulated strong growth in this market segment.
The company has made the decision to change direction in its new residential developments to better respond to this growing trend. Currently, all new multi-family developments located in Ocean County, which total 155 units, will transition from Build For Sale to Build To Lease. The Company now intends to hold these properties once completed and leased indefinitely, and realize the rental income from the property. This strategy will become a very important source of income for the Company and will become a third division of the Company, behind new custom homes and renovation/elevation projects.
Other highlights from the 2021 Annual Report include:
- The phrase “the area’s most trusted builder” accurately describes the company, which is becoming increasingly well known to homeowners in need of new modular and site-built homes, elevations and renovations. The management team has never failed to complete a project in over 29 years in the industry.
- The company’s business model over the past year has focused on increasing the share of new homes and new developments in our business, until it represents 50% to 70% of l of our entire revenue stream, compared to the current level of 20%. New home development has much greater scalability and growth potential than elevation/renovation work. The company has seen steady growth in the renovation/elevation part of the business and expects that by the end of 2022, each part of the business (new homes and elevation work) will account for 50% of the total turnover. By the middle of 2023, the construction and promotion of new housing should represent more than 70% of turnover.
- Management expects steady growth in all segments of the business as the rebuilding process unfolds over the next 15 to 20 years. The combined total number of homes affected by Storm Sandy that will need to be raised or demolished and rebuilt exceeds 30,000 homes, of which less than 15,000 have been rebuilt. This combined remaining market for new construction and elevation projects in the Company’s market area is estimated to be approximately $3.4 billion. The company expects to be able to effectively cater to a decent percentage of this market. Dream Homes’ potential operations include the development and sale of a variety of residential communities, including the construction of semi-custom homes, entry-level single and multi-family homes and first movers.
- The Company has developed referral networks with 3 major module manufacturing companies, from which a reliable and steady stream of leads continues to be received. Based on these associations, it is expected that the company’s custom modular segment will experience significant growth for the foreseeable future.
Dream Homes management believes that the Southern New Jersey real estate market represents one of the most attractive real estate investment opportunities, with the greatest opportunity for future appreciation concentrated in the counties of Ocean, Atlantic , Cape May, Monmouth and Middlesex. These areas are mostly within an hour’s drive and serve as “bedroom” communities for the Atlantic City, New York, and Philadelphia metropolitan areas. In our view, demand for residential housing in this area, particularly in the market segments we intend to address, has a fundamental level of support, based on several factors. These factors include excellent air, rail and road infrastructure (Atlantic City and Philadelphia), casino and support services also in Atlantic City and Philadelphia, tourism and a central location between Philadelphia and New York.
Additionally, there has been, and continues to be, a chronic shortage of affordable housing throughout New Jersey and all indications are that this situation will continue for the foreseeable future. This plays well into the Company’s strengths, which focus on entry-level or first-time movers, as well as upgrades and renovations of damaged existing homes. Finally, all of these market areas have enormous growth potential due to market effects on the already very limited supply of available housing.
About Dream Homes & Development Corp.
Dream Homes & Development Corp. (OTC Pink: DREM) (also “DHDC”) is a full-service construction company based in Forked River, New Jersey, equipped to complete all aspects of a construction project, including design, architecture, engineering and construction. . DHDC’s wholly-owned subsidiaries are licensed new home builders and general contractors; actively building, raising, renovating and rebuilding homes along the Jersey Shore.
Please visit our website at www.dreamhomesltd.com and blog on http://blog.dreamhomesltd.com for more information.
This press release may contain forward-looking statements. The words “believe”, “expect”, “should”, “intend”, “estimate”, “project”, variations of these words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based on the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are the risks detailed in the company’s respective filings with the Securities and Exchange Commission at www.sec.gov.
Company details :
Dream Homes & Development Corp.
Vincent Simonelli, Chairman and CEO
Office: (609) 693-8881
E-mail: [email protected]
Green Chip Investor Relations
President: Matt Chipman
Email: [email protected]