GRAPEVINE, Texas, Aug. 3, 2015 (GLOBE NEWSWIRE) — United Development Funding IV (“UDF” or the “Trust”) (NASDAQ:UDF) announced today that Scott Felder Homes (“SFH”) was named the 2015 Volume Builder of the Year at the STAR Awards, hosted on July 30, 2015 by the Texas Association of Builders (“TAB”). The STAR Awards are given annually to recognize excellence in all areas of the home building industry.
In September 2014, UDF guaranteed certain bank financing incurred by, and provided a loan to, BRHG TX-I, LLC (“TX-I”), a wholly-owned subsidiary of the BR Homebuilding Group, L.P., to finance a portion of TX-I’s acquisition of Scott Felder Homes. The loan can be converted at the Trust’s option into an equity interest of up to 25% in TX-I, which owns Scott Felder Homes, providing UDF shareholders the potential to participate in the growth of a regional homebuilder.
Stacey H. Dwyer, Chief Operating Officer of UDF, commented, “We would like to congratulate Scott Felder Homes for its most recent award from the Texas Association of Builders. This latest recognition of SFH’s commitment to excellence in building affirms our belief that the value of the Scott Felder Homes franchise will continue to increase, which provides the opportunity for additional value for UDF shareholders.”
Each of Hollis Greenlaw, CEO, Chairman and a trustee of UDF, and Todd Etter, Chairman and partner of UMT Holdings, L.P., which owns all of the limited partnership interest in UMTH Land Development, L.P. (“UMTH LD”), a Delaware limited partnership and the affiliated asset manager of the Trust, is an investor in BR Homebuilding Group, L.P. and owns approximately 25% of its common equity.
About the Texas Association of Builders
Founded in 1946, the Texas Association of Builders is an affiliate of the National Association of Home Builders and has 28 local home builders associations across Texas. With a membership of nearly 10,000 representing 702,500 jobs and $31.1 billion annually in the Texas economy, the Texas Association of Builders plays a crucial role in providing housing for Texans.
About United Development Funding IV
United Development Funding IV is a publicly traded Maryland real estate investment trust listed on The NASDAQ Global Select Market. UDF IV was formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate. Additional information about UDF IV can be found on its website at www.udfiv.com. UDF IV may disseminate important information regarding its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.
About BR Homebuilding Group
BR Homebuilding Group was formed in 2014 to conduct homebuilding operations in the largest homebuilding markets of Texas, Florida, North Carolina, South Carolina and Georgia. BR Homebuilding Group entered the Austin and San Antonio markets in Texas with the acquisition of Scott Felder Homes. It is expanding the Scott Felder Homes brand into the Dallas/Fort Worth market, with its first home closings expected in early 2016. Entry into additional markets may be through acquisitions of successful and seasoned homebuilding companies or through new start-up operations. Bobby Ray, a prominent homebuilding executive, is President, as well as one of the founders.
About Scott Felder Homes
Scott Felder Homes is one of the premier homebuilders of Central Texas, with a reputation for integrity, diversity, outstanding customer service and attention to detail. Scott Felder Homes has been honored with the “Volume Builder of the Year” award in 2012, 2013 and 2014 by the Homebuilders Association of Greater Austin, with the “Grand Award –Volume Builder” in 2015 by the Greater San Antonio Builders Association, with the “Production Builder of the Year” award in 2014 by the Austin Business Journal, and with the “Volume Builder of the Year” award in 2012, 2013 and 2015 by the Texas Association of Builders. Scott Felder Homes was also named as a Top Workplace by the Austin American-Statesman in 2013 and 2014.
Important Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may relate to anticipated financial performance, business prospects, outcome of regulatory proceedings, market conditions and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that we expect, believe or anticipate will exist or may occur in the future, are forward-looking statements. These forward-looking statements are based on management’s current intents, beliefs, expectations and assumptions and on information currently available to management that are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in these forward-looking statements. Words such as “may,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “could,” “should” and variations of these words and similar expressions are intended to identify forward-looking statements.
Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. We caution you not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements made by us or on our behalf to reflect changed assumptions, the occurrence of unanticipated events or changes as a result of new information, future developments, subsequent events or circumstances or otherwise. Factors that could cause actual results to differ materially from any forward-looking statements include but are not limited to: changes in general economic conditions, the real estate market and the credit market; increases in development costs that may exceed estimates; development delays; increases in interest rates or decreases in residential lot take down or purchase rates; our borrowers’ inability to sell residential lots; potential need to fund development costs not completed by the initial borrower or other capital expenditures out of operating cash flows; economic fluctuations in Texas, where our investments are geographically concentrated; retention of our senior management team; changes in property taxes; legislative and regulatory changes, including changes to laws governing the taxation of REITs; the availability of capital and financing; restrictive covenants in our credit facilities; and our ability to remain qualified as a REIT.
These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, our Quarterly Reports on Form 10-Q and in subsequent filings with the U.S. Securities and Exchange Commission.