Is Vallejo’s loss Lennar's gain?
From Vallejo's "Discover Vallejo" site.
Text by Sarah Phelan
“Due to the Company’s termination of its right to purchase certain LandSource assets, the Company recognized deferred profit of $101.3 million in the fourth quarter of 2008 (net of $31.8 million of write-offs of option deposits and pre-acquisition costs and other write-offs) related to the recapitalization of the Company’s LandSource joint venture in 2007.”
I’m no expert on investor relations, but it seems that the above paragraph, excerpted from Lennar’s December 18 2008 8-K report, means that by filing bankruptcy at Mare Island last summer, Lennar either spared its shareholders from further loss, or earned them a profit.
Either way, the financial calculation that lurks behind that deal feels like cold comfort to communities like San Francisco whose last pieces of undeveloped lands are caught up in Lennar’s shareholder-driven financial web.
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