WCI Communities Inc. believes it lost as much as $460 million before taxes in the fourth quarter as the foundering real estate market in Florida dragged down the value of the builder's properties.
WCI Communities expects to report a loss of $410 million to $460 million before taxes for the fourth quarter.
WCI Communities builds retirement homes and "lifestyle communities" in Florida mostly for retirees and wealthy vacationers from the New York and Washington, D.C. areas.
The flagging real estate market in Florida means the properties the company is slated to sell are not expected to go for as much as was hoped. In that situation, builders have to "mark down" the value of the properties on their books. WCI Communities recorded $335 million to $350 million in these losses in the fourth quarter.
The losses "reflect the very poor operating conditions that persist in our markets," the company said.
Analysts polled by Thomson Financial expect the company to report a loss of 69 cents per share for the quarter.
The company said it believes it will file its annual report with the Securities and Exchange Commission by March 17, but it may file later than that.
WCI shares fell 8 cents to close at $3.57.
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