Urbi Desarrollos Urbanos SAB (URBI*), Mexico’s third-biggest homebuilder, said it won’t meet this week’s second-quarter earnings report deadline and will ask regulators for more time to avoid a suspension of stock trading.
The builder, which is preparing to restructure debt, is postponing the report as it reviews asset values, including an estimated 32.4 billion pesos ($2.57 billion) in inventory and 12.2 billion pesos in accounts receivable, according to a regulatory filing today. The company said the review includes more than 7,000 hectares (17,300 acres) of land, the value of which is subject to change after the government introduced a new housing subsidy policy last month.
Urbi is seeking a grace period under a rule that allows companies as many as 20 days extra to file earnings results under special circumstances, spokesman David Aguilar said in a telephone interview from Mexico City.
The Mexicali, Mexico-based company is one of three homebuilders in the country seeking to restructure debt amid a shift in government housing policy, which is reallocating federal subsidies and government-backed mortgages to emphasize urban development. Those that accumulated large reserves of inexpensive land outside of cities are struggling to adapt as inventory loses value and the companies are forced develop new products.
The policy move is a reaction to a wave of home abandonment that has swept subsidized commuter towns, where residents say they have grown tired of hours-long commutes to their jobs in the city.
Urbi plans to publish the second-quarter results “as soon as the previously mentioned reviews are completed,” according to the filing.
The stock exchange can suspend stock trading of companies that fail to meet this week’s reporting deadline without an extension from regulators, Francisco Valle, head of promotion and issuers at the country’s bourse, said in an e-mailed response to questions.
To contact the reporter on this story: Jonathan Levin in Mexico City at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com