FORT WASHINGTON, Pa., Sept. 07, 2022 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE: TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, through its Toll Brothers Apartment Living® (TBAL) rental division, and Equity Residential (NYSE: EQR), an S&P 500 company focused on the acquisition, development, and management of residential rental properties located in and around dynamic cities, today announced plans to develop three new luxury rental communities totaling 1,053 units in the Dallas-Fort Worth metropolitan area.

These projects represent the first three joint ventures under the strategic relationship that Toll Brothers and Equity Residential established in 2021. Through the partnership, the parties initially intend to focus on selectively acquiring and developing sites for apartment rental communities in specific metro markets, including Dallas-Fort Worth, where both parties have a significant or growing presence. Under the partnership, Equity Residential has committed to invest 75% of the equity for each selected project and Toll Brothers will invest 25%. It is expected that each project will also be financed with approximately 60% leverage. Equity Residential will have the option to acquire each property upon stabilization. The parties have targeted an initial minimum co-investment of approximately $750 million in combined equity, or nearly $1.9 billion capacity, assuming 60% leverage.

The three new communities to be developed by Toll Brothers and Equity Residential are all located in metro Dallas-Fort Worth. The Settler is a four-story, 362-unit multifamily rental community in Fort Worth being financed through a construction loan facility from U.S. Bank. Remy is a five-story, 357-unit multifamily rental community in Frisco Square being financed through a construction loan facility from Santander Bank, N.A. Lyle is a five-story, 334-unit multifamily rental community in Dallas also being financed through a construction loan facility from Santander Bank, N.A. The loans were arranged by Toll Brothers’ in-house Finance Department.

Douglas C. Yearley, Jr., Chairman and Chief Executive Officer of Toll Brothers, Inc., stated: “We are very pleased with the progress to-date of our strategic partnership with Equity Residential. In addition to these three projects we are developing together in metro Dallas, Equity Residential recently acquired three other communities totaling 909 units that TBAL has recently developed with other partners in the Dallas and Atlanta markets. Going forward, with top quality partners such as Equity Residential co-investing with us at initial site acquisition, we expect to increase TBAL’s capital efficiency and return potential by allowing us to develop more apartments with less capital and providing reliable exit opportunities.

“The synergies from our two great brands, Equity Residential's deep market knowledge and long experience in the management of high-quality rental communities, Toll Brothers' high-end design and development capabilities, and the financial strength of each of our organizations is proving a formidable combination.”

“Dallas-Fort Worth is a dynamic market with a growing population of the affluent renter demographic that we are interested in capturing. We are expanding our presence in the market and believe that these properties will make excellent additions to our existing portfolio there,” said Mark J. Parrell, Equity Residential’s President and CEO. “We are delighted to be partnering with the highly capable team at Toll Brothers and feel that these developments are a terrific start to a strategic partnership that will be very beneficial for both Equity Residential and Toll Brothers.”

Charles Elliott, President of Toll Brothers Apartment Living, stated: “We’re thrilled to announce our first three Class A residential development projects with Equity Residential in Texas, and we look forward to continuing our successful partnership. We’re building these communities in some of the most vibrant and desirable neighborhoods of the Dallas-Fort Worth market, offering the perfect blend of lifestyle and luxury in the middle of it all.”

The Settler will consist of 362 apartment units and a 543-space parking garage with bicycle storage and a sky lounge overlooking downtown Fort Worth. Located at 204 Athenia Drive in the heart of Fort Worth’s River District, the site is in close proximity to Fort Worth’s Central Business District, Cultural, and Medical districts, and the historic Fort Worth Stock Yards. The Settler is just steps away from the scenic Trinity River’s hike and bike trails, various museums, The Fort Worth Botanical Garden, the Fort Worth Zoo, and just north of PGA Tour Host Colonial Country Club.

Remy will consist of 357 apartment units and features a 545-space parking garage. The project is located in the vibrant Frisco Town Center in the Dallas suburb of Frisco at the intersection of Gordon and Church Streets. Frisco is one of the most affluent and desirable suburbs of Dallas. The site is located along Frisco’s North Platinum Corridor, a Development Center on the Dallas North Tollway. Residents will benefit from walkability to an abundance of amenities, including restaurants, retail, a Cinemark movie theater, a free public library, and MLS franchise FC Dallas’ soccer stadium. It is also located adjacent to Frisco’s City Hall and Medical City Frisco hospital.

Lyle will consist of 334 apartment units and features a 475-space parking garage. Lyle is located at 17727 Addison Road, ideally positioned at the intersection of Trinity Mills and Addison Rd., and adjacent to the Dallas North Tollway. The site offers great access to several employment hubs including the Galleria Dallas, Legacy Business Park, Granite Business Park, Las Colinas, CityLine, Hall Park, and The Star, which is located within the $5 Billion Mile.

Each community will feature high-end luxury finishes and residents will enjoy a best-in-class amenity package, including a resort-style pool, a pet spa, co-working spaces, state-of-the-art fitness centers, and much more.

For future updates and information regarding these communities, please visit TollBrothersApartmentLiving.com.

ABOUTTOLLBROTHERSToll Brothers, Inc., A FORTUNE 500 Company, is the nation's leading builder of luxury homes. The Company was founded 55 years ago in 1967 and became a public company in 1986. Its common stock is listed on the New York Stock Exchange under the symbol “TOL.” The Company serves first-time, move-up, empty-nester, active-adult, and second-home buyers, as well as urban and suburban renters. Toll Brothers builds in over 60 markets in 24 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington, as well as in the District of Columbia. The Company operates its own architectural, engineering, mortgage, title, land development, golf course development, smart home technology, and landscape subsidiaries. The Company also operates its own lumber distribution, house component assembly, and manufacturing operations.

Toll Brothers was named the World’s Most Admired Homebuilder in FORTUNE magazine’s 2022 survey of the World’s Most Admired Companies®, the seventh year it has been so honored. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.

Toll Brothers discloses information about its business and financial performance and other matters, and provides links to its securities filings, notices of investor events, and earnings and other news releases, on the Investor Relations section of its website (investors.TollBrothers.com).

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ABOUTTOLLBROTHERSAPARTMENTLIVING®Toll Brothers Apartment Living is the apartment development division of Toll Brothers, Inc. (NYSE: TOL), an award- winning FORTUNE 500 company, and the nation's leading builder of luxury homes. Toll Brothers Apartment Living brings the same quality, luxury, and service for which Toll Brothers is known to its exceptional rental and mixed-use communities in select markets, including Atlanta, Boston, Dallas, Los Angeles, New York, Philadelphia, Phoenix, and Washington, DC. Toll Brothers Apartment Living communities combine the energy of vibrant locations with unparalleled amenities, resident services, design, and the expertise of America’s Luxury Home Builder®. In 2022, NMHC ranked Toll Brothers Apartment Living the 11th largest apartment developer in the United States. The firm has developed nearly 8,500 units, has nearly 4,500 units under management, and controls a national pipeline of more than 20,500 units. For more information visit TollBrothersApartmentLiving.com.

ABOUTEQUITYRESIDENTIALEquity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract high quality long-term renters. Equity Residential owns or has investments in 309 properties consisting of 79,730 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin. For more information on Equity Residential, please visit our website at www.equityapartments.com.

FORWARD-LOOKINGSTATEMENTSThis release contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these statements by the fact that they do not relate to matters of a strictly historical or factual nature and generally discuss or relate to future events. These statements contain words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “may,” “can,” “could,” “might,” “should,” “likely,” “will,” and other words or phrases of similar meaning. Such statements may include, but are not limited to, information and statements regarding: the impact of Covid-19 on the U.S. economy and our business; expectations regarding interest rates and inflation; the markets in which we operate or may operate; our strategic objectives and priorities; our land acquisition, land development and capital allocation priorities; housing market conditions; demand for our homes; anticipated operating results and guidance; home deliveries; financial resources and condition; changes in revenues; changes in profitability; changes in margins; changes in accounting treatment; cost of revenues, including expected labor and material costs; selling, general, and administrative expenses; interest expense; inventory write-downs; home warranty and construction defect claims; unrecognized tax benefits; anticipated tax refunds; sales paces and prices; effects of home buyer cancellations; growth and expansion; joint ventures in which we are involved; anticipated results from our investments in unconsolidated entities; our ability to acquire or dispose of land and pursue real estate opportunities; our ability to gain approvals and open new communities; our ability to market, construct and sell homes and properties; our ability to deliver homes from backlog; our ability to secure materials and subcontractors; our ability to produce the liquidity and capital necessary to conduct normal business operations or to expand and take advantage of opportunities; and the outcome of legal proceedings, investigations, and claims.

Any or all of the forward-looking statements included in this release are not guarantees of future performance and may turn out to be inaccurate. This can occur as a result of incorrect assumptions or as a consequence of known or unknown risks and uncertainties. The major risks and uncertainties – and assumptions that are made – that affect our business and may cause actual results to differ from these forward-looking statements include, but are not limited to:

• the effects of the ongoing Covid-19 pandemic, which remain highly uncertain, cannot be predicted and will depend upon future developments, including the duration of the pandemic, the impact of mitigation strategies taken by applicable government authorities, the continued availability and effectiveness of vaccines, adequate testing and therapeutic treatments and the prevalence of widespread immunity to Covid-19;
• the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages and strength of the U.S. dollar;
• market demand for our products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions;
• the availability of desirable and reasonably priced land and our ability to control, purchase, hold and develop such land;
• access to adequate capital on acceptable terms;
• geographic concentration of our operations;
• levels of competition;
• the price and availability of lumber, other raw materials, home components and labor;
• the effect of U.S. trade policies, including the imposition of tariffs and duties on home building products and retaliatory measures taken by other countries;
• the effects of weather and the risk of loss from earthquakes, volcanoes, fires, floods, droughts, windstorms, hurricanes, pest infestations and other natural disasters, and the risk of delays, reduced consumer demand, and shortages and price increases in labor or materials associated with such natural disasters;
• the risk of loss from acts of war, terrorism or outbreaks of contagious diseases, such as Covid-19;
• federal and state tax policies;
• transportation costs;
• the effect of land use, environment and other governmental laws and regulations;
• legal proceedings or disputes and the adequacy of reserves;
• risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, indebtedness, financial condition, losses and future prospects;
• the effect of potential loss of key management personnel;
• changes in accounting principles;
• risks related to unauthorized access to our computer systems, theft of our and our homebuyers’ confidential information or other forms of cyber-attack; and
• other factors described in “Risk Factors” included in our Annual Report on Form 10-K for the year ended October 31, 2021 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).

Many of the factors mentioned above or in other reports or public statements made by us will be important in determining our future performance. Consequently, actual results may differ materially from those that might be anticipated from our forward-looking statements.

Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.

For a further discussion of factors that we believe could cause actual results to differ materially from expected and historical results, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K filed with the SEC and in subsequent reports filed with the SEC. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995, and all of our forward-looking statements are expressly qualified in their entirety by the cautionary statements contained or referenced in this section.

Contact: Frederick N. Cooper (215) 938-8312fcooper@tollbrothers.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5db16f48-3908-4bc8-9bba-b9c3cbbd5c08

Remy

Frisco, TX