LGI Homes

Last updated

LGI Homes, Inc.
Company type Public
Nasdaq:  LGIH [1]
S&P 600 component
Industry Construction
Founded2003;21 years ago (2003) (as Lippar Group Inc.)
FounderThomas Lipar
Headquarters The Woodlands, Texas, U.S.
Key people
Eric Lipar (CEO)
Mike Snider (president)
Revenue$2.3 billion (2022)
Number of employees
900+ [2]
Website lgihomes.com

LGI Homes, Inc. is an American construction company that is known for building homes and housing developments in the southwestern and southeastern United States. The company was founded in 2003 and is based in The Woodlands, Texas. It went public on NASDAQ in 2013 [3] [4]

Contents

History

2003-2013

In 2003, LGI Homes was founded in The Woodlands, Texas by Thomas Lipar and his son Eric Lipar. [5] [6] LGI Homes primarily focuses on entry-level housing for first-time homebuyers. [7] [8] LGI Homes initially built homes in its home state of Texas. [9] Their first project was a residential development in Conroe called Summerset Estates. [10]

In 2009, LGI Homes received recognition for being the only builder in the United States to increase closing and revenue over the prior three years. [11]

In 2009, Eric Lipar was appointed the company’s CEO. [5] By 2009, the company had subdivisions in Houston and San Antonio. [12]

In 2010, LGI Homes announced a joint venture with GoldenTree to expand business in Texas markets. [13] The company also partnered with New York-based equity firm GTIS Partners to acquire nearly 2,200 home sites in Texas and Florida. [14]

In 2012, LGI Homes built its first project outside of Texas in Phoenix, Arizona. [10]

In July 2013, Eric Lipar was appointed chairman of the company, becoming the CEO and Chairman of LGI Homes. [5]

In 2013, the company announced that they would be expanding to the southeast, and that plans to develop new home communities in Florida and Georgia were in place. [15]

2013-2019: Going Public

LGI Homes began publicly trading shares of their company on November 7, 2013. The share price of the initial 9 million shares rose from $11 per share to $12.26 by market closing, an increase of 11%. [16] The company planned to use the $90 million they raised to grow their company particularly in Texas. [17] In the same month, LGI Homes bought 87 lots in Rio Rancho in Albuquerque, marking its expansion to New Mexico. [18]

In 2014, LGI Homes expanded to Colorado. In October 2014, the company purchased Oakmont Home Builders and expanded into North Carolina, South Carolina. [19]

In 2015, LGI Homes expanded into Jacksonville, Florida, and Seattle, Washington. [20] In 2016, LGI Homes was named ProBuilder’s ‘Builder of the Year;’ [20] the company was active in 16 markets and 10 states. [20] [21]

In 2017, the company expanded into Portland and Raleigh. [22] In April 2018, LGI Homes opened its first community in Oklahoma City, OK. [23]

In August, the company acquired the assets of Raleigh-based Wynn Homes. [24] This acquisition earned the homebuilder over 200 under-construction homes and approximately 4,000 lots. [25] LGI Homes also expanded into Las Vegas in the same year. [26] Fortune magazine named LGI Homes the tenth-fastest growing company in the country in its 2018 list of 100 Fastest-Growing Companies. [27] LGI Homes also claimed the No. 5 spot in the Chronicle’s Top Workspaces list compiled by Energage. [28]

In 2019, LGI Homes expanded into Southern California and was ranked 35 on Fortune’s Fastest-Growing Companies. [29] The same year, LGI Homes opened the Lake Jackson Ridge Community in Orlando, Florida. [30] In 2019, LGI Homes was named the 10th largest homebuilder in the nation by Builder Magazine; they remained the tenth-largest homebuilder in the nation in Builder Magazine’s 2020, 2021, and 2022 editions. [3]

2020-Present

At the end of 2020, LGI Homes operated in 34 markets in 18 states. [31] [32]

On May 7, 2021, LGI Homes acquired the assets of Minneapolis-based home builder KenRoe. [31] In July 2021, LGI Homes acquired the Austin-based home-building company Buffington Homebuilding. [33] In November 2021, LGI Homes formed a joint-venture partnership with retail mortgage lender LoanDepot, which holds “preferred status” as the lender of choice at LGI Homes. [34] The joint venture was named LGI Mortgage Solutions. [34] After a land deal with Drapac Capital Partners in 2021, LGI Homes expanded its development of single-family homes in Birmingham, Alabama, and Nashville, Tennessee. [35]

In 2021, LGI Homes closed over 10,000 home sales. [36]

Philanthropy

LGI Homes holds an annual Service Impact Day in which employees are given the day off to help the local community. [20] During the company’s 2019 Service Impact Day, employees provided volunteer labor for Church Without Walls Ministries and Children’s Hope Alliance House. [37] In 2023, LGI Homes employees volunteered with organizations such as Village of Hope and SIRE. [38]

In February 2023, LGI Homes received the Corporate Volunteering Champion Award from Texas’s First Lady Cecilia Abbott and the OneStar Foundation in recognition of its volunteer efforts with SIRE, a nonprofit organization that provides therapeutic horsemanship for people with special needs. [39]

In the same month, LGI Homes partnered with Habitat for Humanity for the Blitz Build project, which constructed four new homes in one week for Habitat’s Cedar Creek Subdivision in Conroe. [40] LGI Homes has also worked with Habitat for Humanity on other charitable projects such as its Building Hope charity gala. [41]

Subsidiaries and Other Products

Terrata Homes

In addition to entry-level housing, LGI Homes also sells move-up and luxury housing under its Terrata Homes brand. [34] Terrata Homes builds homes in numerous states including California, Florida, Georgia, Oklahoma, Texas, and Washington. [42]

LGI Living

LGI Homes also has an affiliated wholesale business named LGI Living, which sells single-family homes to rental investors. [43] LGI Living provides real estate brokerage and acquisition services, property and real estate portfolio management, and rental property management. [44]

LGI Homes Active Adult

In 2018, LGI Homes announced its first active-adult community in Phoenix, AZ. In 2022, LGI Homes began selling homes in their first active adult community in California, in Rio Vista. [45]

LGI Mortgage Solutions

LGI Mortgage Solutions is a joint venture partnership between LGI and LoanDepot, [46] which allows LGI Homes to offer mortgage loans through LGI Mortgage Solutions. [47]

Awards and recognition

See also

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References

  1. ↑ "LGI HOMES, INC. (LGIH) IPO". NASDAQ . Retrieved 30 May 2015.
  2. ↑ "LGI Homes, Inc. Reports Fourth Quarter and Full Year 2022 Results and Issues Guidance for 2023". 21 February 2023.
  3. 1 2 3 "2019 Builder Magazine "Builder 100"". builderonline.com. The Builder. Retrieved 8 May 2019.
  4. ↑ Kirkham, Chris (18 October 2016). "Texas Builder Aggressively Markets Starter Homes". Wall Street Journal. ISSN   0099-9660 . Retrieved 6 August 2023.
  5. 1 2 3 "LGI Homes' CEO Built His Company To Thrive In Times Like These". Investor's Business Daily. 8 October 2020. Retrieved 1 August 2023.
  6. ↑ "About LGI Development". lgidevelopment.com. LGI Development. Archived from the original on 29 June 2013. Retrieved 26 June 2013.
  7. ↑ "LoanDepot launches digital mortgage partnership with builder". Inman. Retrieved 1 August 2023.
  8. ↑ "Refuse to Participate in the Housing Slow-Down" Archived 8 July 2011 at the Wayback Machine , Builder Radio interview with company CEO Eric Lipar, 2008.
  9. ↑ "Niche Builder LGI Homes Targets Renters For Starters". nasdaq.com. 10 September 2015.
  10. 1 2 "No. 9: LGI Homes expands into new communities". houstonchronicle.com. 24 July 2020.
  11. ↑ "LGI Homes: Justified Rally, But Don't Chase It Here (NASDAQ:LGIH) | Seeking Alpha". seekingalpha.com. 21 October 2019. Retrieved 6 August 2023.
  12. ↑ "LGI HOMES IN TEXAS STANDS OUT". builderonline.com. 9 March 2009.
  13. ↑ Dawson, Jennifer (4 April 2010). "LGI Homes, GoldenTree Insite targets dirt-cheap lots". Houston Business Journal. Retrieved 26 June 2013.
  14. ↑ "GTIS Makes a Raw-Land Bet". Wall Street Journal. 14 September 2010. ISSN   0099-9660 . Retrieved 2 August 2023.
  15. ↑ "Affordable New Homes from LGI Homes are Coming to Central Florida". LGI Homes. 10 July 2012. Retrieved 26 June 2013.
  16. ↑ Mantell, Ruth (7 November 2013). "The Wall Street Journal's Market Watch" . Retrieved 24 February 2015.
  17. ↑ Zucker, Shaina (8 November 2013). "LGI Homes CEO has big plans for $90M raise". Houston Business Journal. Retrieved 24 February 2015.
  18. ↑ "LGI MARCHES INTO NASHVILLE, SEATTLE AND ADDS LOTS IN DENVER". builderonline.com. 15 July 2015.
  19. ↑ "The List: Mecklenburg County's most active homebuilders". bizjournals.com. 4 September 2015. Retrieved 6 August 2023.
  20. 1 2 3 4 5 "2016 Builder of the Year: LGI". Professional Builder. 28 November 2016. Retrieved 6 August 2023.
  21. ↑ "As demographics change, McMansions don't look quite so appealing". Washington Post. 13 August 2016.
  22. ↑ "THE FORMULA BEHIND THE SUCCESS OF LGI'S ENTRY-LEVEL MODEL". builderonline.com. 6 September 2017.
  23. ↑ "LGI OPENS IN OKLAHOMA CITY". builderonline.com. 11 April 2018.
  24. ↑ Buckshon, Mark (21 August 2018). "Houston-based LGI Homes acquires Triangle-area Wynn Homes for $80 million". ncconstructionnews.com. Retrieved 6 August 2023.
  25. ↑ "Citing potential slowdown, fast-growing homebuilder sold to Houston co. for $80M". bizjournals.com. 21 August 2018. Retrieved 6 August 2023.
  26. ↑ "Eastern Las Vegas Valley seeing uptick in home construction". Las Vegas Review-Journal. 9 March 2019. Retrieved 6 August 2023.
  27. 1 2 "LGI Homes". Fortune. Retrieved 6 August 2023.
  28. ↑ "Clear goals, support keep LGI Homes' turnover low". chron.com. 1 November 2018.
  29. 1 2 "LGI Homes". Fortune. Retrieved 6 August 2023.
  30. ↑ "LGI HOMES OPENS ORLANDO COMMUNITY". builderonline.com. 16 April 2019.
  31. 1 2 "The Rise And Rise Of LGI Homes: A Model Fit For Headwinds". The Builder's Daily. 19 May 2021. Retrieved 6 August 2023.
  32. ↑ "SEC Filing | LGI Homes, Inc". investor.lgihomes.com. Retrieved 29 June 2020.
  33. ↑ "LGI Homes acquires Austin builder". houstonchronicle.com. 15 July 2021.
  34. 1 2 3 Kleimann, James. "LoanDepot forms JV with homebuilder LGI Homes". HousingWire. Retrieved 6 August 2023.
  35. ↑ "LGI Homes picks up Montevallo land as part of $32.9M deal". bizjournals.com. 5 December 2021. Retrieved 6 August 2023.
  36. 1 2 "2022 Builder 100". builderonline.com. 2022.
  37. ↑ "LGI Homes teams up with Church Without Walls Ministries to revamp outreach building". The Journal. 9 June 2019. Retrieved 6 August 2023.
  38. ↑ Kalliber, Kim (17 May 2023). "Extreme Makeover: Tulalip Edition". Tulalip News. Retrieved 6 August 2023.
  39. ↑ "First Lady Abbott, OneStar Foundation Announce 39th Annual Governor's Volunteer Awards Recipients". gov.texas.gov. Retrieved 6 August 2023.
  40. ↑ "Habitat for Humanity literally raises the roof for local families with Blitz Build project". Woodlands Online. Retrieved 6 August 2023.
  41. ↑ "LGI Homes a presenting sponsor for Habitat's Build Hope Gala". yourconroenews.com. 13 January 2023.
  42. ↑ "LGI Homes unveils luxe home offering in two Houston area communities". chron.com. 13 August 2019.
  43. ↑ Zourmpanos, Yiannis (22 September 2021). "LGI Homes: A High Performing Homebuilder At A Good Price (NASDAQ:LGIH) | Seeking Alpha". seekingalpha.com. Retrieved 6 August 2023.
  44. ↑ "LGI LIVING Trademark of LGI Homes, Inc". trademarks.justia.com. Retrieved 6 August 2023.
  45. ↑ "LGI HOMES OPENS 55+ TERRATA HOMES COMMUNITY IN RIO VISTA, CALIFORNIA". builderonline.com. 11 March 2022.
  46. ↑ Robertson, Colin (13 February 2020). "loanDepot Mortgage Review: Their Digital Process Helps You Close 17 Days Faster". The Truth About Mortgage. Retrieved 6 August 2023.
  47. ↑ "loanDepot announces new JV with LGI Homes". www.mpamag.com. Retrieved 6 August 2023.
  48. ↑ "Clear goals, support keep LGI Homes' turnover low". chron.com. 1 November 2018.
  49. ↑ "2020 Builder List". builderonline.com. 2021.
  50. ↑ "2021 Builder List". builderonline.com. 2020.
  51. ↑ "Governor's Volunteer Awards". OneStar Foundation. Retrieved 6 August 2023.
  52. ↑ "America's Most Trustworthy Companies 2022". Newsweek. 20 March 2022. Retrieved 6 August 2023.
  53. ↑ "Most Trustworthy Companies in America 2023". Newsweek. 29 March 2023. Retrieved 6 August 2023.
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