1218320--3/19/2009--Woodbridge_Holdings_Corp_(Formerly_Levitt

related topics

{loan, real, estate}

{tax, income, asset}

{cost, contract, operation}

{cost, regulation, environmental}

{acquisition, growth, future}

{operation, natural, condition}

{financial, litigation, operation}

{investment, property, distribution}

{debt, indebtedness, cash}

{personnel, key, retain}

{stock, price, operating}

Because real estate investments are illiquid, the downturn in the real estate market and in the economy in general has had, and may continue to have, an adverse impact on our business and cash flow. The commercial real estate market has been adversely affected by the current economic and credit environment. Commercial leasing projects may not yield anticipated returns, which could harm our operating results, reduce cash flow, or the ability to sell commercial assets. We utilize community development district and special assessment district bonds to fund development costs, and we will be responsible for assessments until the underlying property is sold. Core s results are subject to significant volatility. We are dependent upon certain key tenants in our commercial developments, and decisions made by these tenants or adverse developments in the business of these tenants could have a negative impact on our financial condition. It may be difficult and costly to rent vacant space and space which may become vacant in future periods. Additional adverse changes in economic conditions where we conduct our operations could further reduce the demand for real estate and, as a result, could further adversely impact our results of operations and financial condition. If prospective purchasers of our inventory and tenants are not able to obtain suitable financing, our results of operations may further decline. Natural disasters could have an adverse effect on our real estate operations. A portion of our revenues from land sales in Core s master-planned communities are recognized for accounting purposes under the percentage of completion method. Therefore, if our actual results differ from our assumptions, our profitability may be reduced. Product liability litigation and claims that arise in the ordinary course of business may be costly. We are subject to governmental regulations that may limit our operations, increase our expenses or subject us to liability. Building moratoriums and changes in governmental regulations may subject us to delays or increased costs of construction or prohibit development of our properties. We are subject to environmental laws and the cost of compliance could adversely affect our business. Increased insurance risk could negatively affect our business. Levitt and Sons had surety bonds on most of their projects, some of which were subject to indemnity by Woodbridge. RISKS RELATING TO OUR OTHER ACTIVITIES AND TO OUR COMPANY, GENERALLY Our outstanding debt instruments impose restrictions on our operations and activities and could adversely affect our financial condition. Our current business strategy may require us to obtain additional capital, which may not be available on favorable terms, if at all. We are subject to the risks of the businesses that we currently hold investments in, and our future acquisitions may reduce our earnings, require us to obtain additional financing, and expose us to additional risks. If current economic and credit market conditions do not improve and the book value of our investments continue to exceed the trading value of the shares we own, we may incur additional impairment charges in the future relating to those investments, which would adversely impact our financial condition and operating results. We are subject to certain additional risks relating to our investment in Bluegreen. The loss of the services of our key management and personnel could adversely affect our business. Our controlling shareholders have the voting power to control the outcome of any shareholder vote, except in limited circumstances. Our net operating loss carryforwards could be substantially limited if we experience an ownership change as defined in the Internal Revenue Code.

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1218320--3/19/2009--Woodbridge_Holdings_Corp_(Formerly_Levitt_Corp)