1038217--3/16/2006--TARRAGON

related topics

{loan, real, estate}

{cost, contract, operation}

{stock, price, share}

{competitive, industry, competition}

{investment, property, distribution}

{loss, insurance, financial}

{acquisition, growth, future}

{tax, income, asset}

{cost, regulation, environmental}

{provision, law, control}

The market price for our common stock may be highly volatile. Shares of our common stock eligible for public sale could adversely affect the market price of our common stock. We have a substantial number of stock options and other interests convertible into our common stock outstanding and have the ability to grant a substantial number of stock options in the future under currently effective benefit plans. Our governing documents contain anti-takeover provisions that may make it more difficult for a third party to acquire control of us. Risks Related to Our Homebuilding Business We are subject to risks associated with construction and development. The homebuilding industry is highly competitive. Our future cash flows from our homebuilding division may be lower than expected. Governmental laws and regulations may increase our expenses, limit the number of homes that we can build, or delay completion of our projects. Our homebuilding activities and condominium conversions expose us to risks associated with the sale of residential units. Risks Related to Our Business Generally We are subject to all of the risks that affect homebuilders and real estate investors generally. Increases in interest rates could materially increase our interest expense or could reduce our revenues. Our net income may fluctuate. We may not be able to sell our investment properties at the desired time or price. We may require significant additional financing that may not be available on commercially favorable terms, if at all. Property ownership through partnerships and joint ventures generally limits our control of those investments and entails other risks. The rental activities of our Investment Division expose us to a number of risks associated with owning, managing and operating rental real estate. The regional concentration of our assets may increase the effects of adverse trends in those markets. Increased insurance costs and reduced insurance coverage may affect our results of operations and increase our potential exposure to liability. Our business strategy of acquiring rental properties for conversion to condominiums exposes us to additional risks. Fluctuations in real estate values may require us to write down the book value of our real estate assets. It may be difficult to operate profitably in new markets. We are subject to environmental laws and regulations, and our properties may have environmental or other contamination.

Full 10-K form ▸

1038217--3/16/2006--TARRAGON_CORP