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Japanese-owned U.S. homebuilders shift to lower leverage and capital efficiency

HousingWire reports that Sumitomo Forestry, Sekisui House, and Daiwa House are weighing weaker U.S. profit outlooks and a soft yen alongside target lower leverage ratios.

Reported · Written up by our desk · Industry

HousingWire reports that Japanese-owned U.S. homebuilders with major U.S. operations are prioritizing capital efficiency and reducing leverage, a shift that could mean less future investment in land and growth in the United States.

The outlet said three large builders with significant U.S. exposure, Sumitomo Forestry, Sekisui House, and Daiwa House, are pointing to a more selective approach to investment after years of acquisitions and U.S. platform buildouts.

HousingWire attributes the pivot to three main factors, including efforts to improve capital efficiency and lower leverage ratios, a change in relative performance where Japan-based operations are now generating stronger results, and the weak Japanese yen making additional U.S. investment more expensive.

The story adds that, with U.S. profit outlooks softening and the yen staying weak, the builders may reduce the pace of acquisitions, land spending, and other growth investments tied to their U.S. businesses.

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