M/I Homes subsidiary extends credit facility to $300 million

Today, M/I Homes (NYSE:MHO), Inc., an Ohio-based homebuilding company, announced through a regulatory filing that its subsidiary, M/I Financial, LLC, has amended its existing credit agreement with JPMorgan Chase (NYSE:JPM) Bank, N.A., and other lenders. The amendment extends the term and increases the maximum aggregate commitment of the MIF Mortgage Repurchase Facility.

The Master Repurchase Agreement, initially dated October 24, 2023, and previously amended on July 16, 2024, has been further modified to extend its maturity to October 21, 2025, or earlier if required by any governmental authority or by law. The amendment also increases the facility's capacity from its previous limit to $300 million. This facility is primarily utilized to finance eligible mortgage loans originated by M/I Financial.

The detailed terms of the amendment were not disclosed in the summary provided in the filing. However, the company indicated that the other material terms of the MIF Mortgage Repurchase Facility remain unchanged. The amendment was executed on October 22, 2024, and the information is derived from the company's filing with the Securities and Exchange Commission (SEC).

M/I Homes, Inc. has a presence on the New York Stock Exchange under the ticker symbol NYSE:MHO and is classified under the Operative Builders industry. The company's executive offices are located in Columbus, Ohio.

The announcement is based on a press release statement.

In other recent news, M/I Homes reported a record Q2 revenue of $1.1 billion, marking a 12% year-over-year increase in home closings with 2,224 homes closed. The company also highlighted substantial gross and pre-tax margins of 28% and 17.5% respectively. M/I Homes' balance sheet remains robust, boasting $2.7 billion of equity, $800 million in cash, and no borrowings.

Seaport Global Securities initiated coverage on M/I Homes with a Neutral rating, noting the company's strong financial performance and operational efficiency. M/I Homes' valuation stands at 1.5 times its fiscal year 2024 book value, which is close to its peers, despite superior returns on equity and inventory.

Amid these developments, the company plans to open around 80 new stores this year, focusing on market share gains with low debt levels. Despite challenges such as a slowdown in demand and an increase in inventory levels, particularly in Florida and Texas, M/I Homes maintains an optimistic outlook for 2024.

The company's strategic positioning and product offerings will be key factors in its performance moving forward.

InvestingPro Insights

M/I Homes' recent amendment to its credit agreement aligns with its strong financial position and growth trajectory. According to InvestingPro data, the company boasts a market capitalization of $4.42 billion and a price-to-earnings ratio of 8.44, indicating a potentially undervalued stock relative to its earnings. This favorable valuation is further supported by the company's impressive revenue of $4.18 billion over the last twelve months as of Q2 2024.

InvestingPro Tips highlight that M/I Homes operates with a moderate level of debt and its liquid assets exceed short-term obligations. These factors likely contributed to the company's ability to secure an increased credit facility, providing greater financial flexibility for its mortgage operations.

The stock has shown remarkable performance, with a 100.26% price return over the past year and a 33.24% return in the last six months. This strong market performance, coupled with the company's solid financials, suggests that M/I Homes is well-positioned to capitalize on the extended and increased credit facility.

For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for M/I Homes, providing deeper insights into the company's financial health and market position.

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