Homefed Financial Paper

HomeFed Corporation was incorporated in Delaware in 1988; HomeFed is a real estate development company for residential and commercial real estate properties in California, Virginia, South Carolina, Florida, Maine and New York. HomeFed currently engages, directly and through their subsidiaries, which are San Elijo Hills, Ashville Park and Otay Land Company. As a development company, HomeFed is responsible for design, engineering, grading raw land, constructing public infrastructure such as streets, utilities and public facilities, and finishing individual lots for home sites or other facilities. The SIC code for HomeFed is 6500. This report will discuss the financial position of HomeFed in its industry as a whole and compared to its competitors Getty Reality Corporation. The report will also analyze the financial data of HomeFed. HomeFed operating revenue for 2014 was $60.3 million; after the expense the net income of HomeFed for 2014 was $3.9 million. Another real estate development company; Getty Realty corporation
They are many risk factors involved with investing in HomeFed. Residential property sales volume, prices and new building startups have declined significantly in many U.S. markets, which have negatively affected sales and profits. HomeFed relies significantly on the economic growth and in the regions they own the property. Leucadia National Corporation has significant influence by owning 65% of their common stocks. This could impact the performance of their business. HomeFed’s common stock is not traded through NASDAQ or securities exchange, because of this; stockholders may find it more difficult to dispose of or obtain accurate quotations as to the market value of the securities. In the past four years the dividend per share has been $0.00 and the current stock value for HomeFed is $35.65. Overall this company would not be a good choice to invest in because of all the risk