MF Developer Reports '06 Profits

Tarragon Corp., a New York-based developer of multifamily housing, has reported net income of $9.8 million ($0.31 per share) for 2006, compared with $88.5 million ($2.93 per share) for 2005.The company reported that its 2006 income was "adversely impacted by unusual items," which include "market-driven margin reductions and impairments" on cost of sales. Adjustments were made to reflect price reductions, slower absorption, and increased marketing costs on unsold units, Tarragon said. Tarragon is also proposing to spin off its homebuilding division as a separate, publicly traded company, while continuing to operate its real estate services business as Sage Residential. For the fourth quarter, Tarragon reported a net loss of $25.1 million ($0.89 per share), compared with net income of $7.8 million ($0.26 per share) for the fourth quarter of 2005. The company can be found online at http://www.tarragonsite.com.