Avatar's Net Income Heads South

MIAMI-Avatar Holdings Inc., a Coral Gables, FL-based single-family and townhomes developer, has seen better times on its profit and loss sheet.

The developer posted net income of $1.55 million on revenue of $41.8 million for the third quarter ended Sept. 30 compared to $14 million on sales of $54 million for the comparable 2000 period.

For the nine-month period, Avatar reported net income of $5 million on revenue of $123.9 million versus $10.2 million on sales of $118.8 million in the same period last year.

Nine-month results include the sale of Avatar’s Woodland Hills community in California at a price of $7.7 million. The transaction was recorded on July 6 of this year and gave the company a pre-tax gain of $5.3 million for the third quarter.

The developer’s biggest disappointment is Solivita, its Central Florida active adult community. Operating losses there continue to drop. Third-quarter losses were $2 million versus a loss of $2.26 million in the second quarter; a loss of $2.7 million in the first quarter; and a loss of $3.57 million in the fourth quarter of 2000.

Third-quarter sales results at Solivita, “although substantially the same as the comparable period of 2000, were lower than anticipated,” the company says in a prepared statement.

Conversely, at its Poinciana, FL development, near Walt Disney World in Osceola County, sales “exceeded expectations,” Avatar states.

“Management believes that improved results at Poinciana are due to the development of Solivita and road and community enhancement which have made Poinciana a more desirable location, as well as the introduction late in 2000 of scattered lot homebuilding programs.”

Avatar’s real estate operations are primarily in Florida and Arizona. The principal properties are at Poinciana, 30 miles south of Downtown Orlando; Harbor Islands (Admiral’s Cove) on Florida’s east coast; and Rio Rico, south of Tucscon, AZ.