“We expect interest in cost of sales to be approximately 1.5%, and in the second quarter for the full year. This would represent a 20-basis point reduction in interest expense and cost of sales year-over-year as our leverage continues to decline.”

In context

“rom our guide was almost entirely due to selling out 11 communities faster than we anticipated. Our openings generally met our plan. Our forward guidance is subject to the usual caveats regarding forward-looking information. That being said, the 7,733 homes in backlog at the first quarter end gives us good visibility for the remainder of the year. We are projecting fiscal 2023 second quarter deliveries of approximately 2,050 to 2,150 homes with an average delivered price of between $980,000 and $1 million. For fiscal year 2023, we are maintaining our guidance and project deliveries of between 8,000 and 9,000 homes with an average price between $965,000 and $985,000. We expect our adjusted gross margin in the second quarter of fiscal year 2023 and for the full year to be approximately 27%. We expect interest in cost of sales to be approximately 1.5%, and in the second quarter for the full year. This would represent a 20-basis point reduction in interest expense and cost of sales year-over-year as our leverage continues to decline. We project second quarter SG&A as a percentage of home sales revenues to be approximately 11.2%. And as I mentioned, for the full year, we now expect it to be 11.0%. We Other income, income from 1 unconsolidated entities and land sales gross profit is expected to be approximately breakeven in the second quarter and $125 million for the full year. Much of this full year other income is projected from second half sales of our interest in certain stabilized department communities developed by Toll Brothers Apartment Living in joint venture with various partners. While the market for the sale of these stabilized rental properties is unpredictable due to volatility in the capital markets. Our occupancies remain strong and we do currently expect to sell our interest in 4 of these joint ventures”