La Rosa Provides Update on its Property Management Subsidiary; Properties Under Management Increased by 12% Year-to-Date

Rhea-AI Summary

La Rosa Holdings Corp. (NASDAQ: LRHC) announced a 12% increase in properties under management by its subsidiary, La Rosa Property Management (LRPM), year-to-date. This growth outpaces the 10% increase for all of last year, reflecting the company's strong start in 2024. CEO Joe La Rosa attributed this success to exceptional service and client commitment, forecasting a potential 30% annual growth rate for properties under management. In 2023, property management revenue rose by $1.65 million, or 21%, driven by an increase in managed properties and a management fee hike effective from September 1, 2023. This ongoing growth is expected to further boost top-line revenue in 2024.

Positive

• Properties under management increased by 12% year-to-date.
• Annual growth rate for properties under management expected to be approximately 30%.
• Property management revenue increased by $1.65 million, or 21%, in 2023.
• Revenue growth driven by an increase in the number of managed properties and a management fee hike.

Negative

• No specific challenges or risks reported in the PR.

Insights

Financial Analyst

La Rosa Holdings Corp. has announced an impressive 12% increase in properties under management for its subsidiary, La Rosa Property Management LLC (LRPM), year-to-date. This growth is noteworthy, especially when compared to a 10% increase for the entire previous year.

The financial implications are significant. First, an increase in managed properties typically translates to higher management fees and thus, increased revenue. For 2023, property management revenue increased by $1.65 million, or 21%. If the company maintains or exceeds this growth trajectory, it could mean a similar or even greater boost in revenue for 2024. This is an encouraging sign for investors looking for continuous growth and stability in their portfolios.

However, we must consider the sustainability of this growth. La Rosa's optimistic target of a 30% annual growth rate will require continued strong client acquisition and retention strategies. Additionally, market conditions, such as the demand for single-family residential properties in Florida, will play a important role. Investors should monitor these factors closely to gauge the company's long-term performance.

Market Research Analyst

The growth in properties under management by La Rosa Property Management LLC highlights favorable market conditions in Florida's single-family residential property sector. This segment has shown resilience and demand, contributing to LRPM's notable 12% growth year-to-date.

It's worth noting that the increase in management fees, effective from September 2023, also played a role in revenue growth. This fee adjustment indicates effective market positioning and the ability to command higher prices without deterring clients. However, continual fee hikes may face elasticity limits and could affect future client acquisition if not managed prudently.

Investors should also be aware of regional market dynamics. Florida's real estate market, particularly in the single-family segment, has been strong, driven by factors such as population growth and favorable tax policies. Yet, any changes in these drivers could impact property management growth rates.

Celebration, FL, June 04, 2024 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a holding company for five agent-centric, technology-integrated, cloud-based, multi-service real estate segments, today provided an update on its subsidiary, La Rosa Property Management LLC (“LRPM”), which reports that its properties under management increased by 12% year-to-date. LRPM specializes in property management services for owners of single-family residential properties and manages a diverse portfolio of properties across Florida.

Joe La Rosa, CEO of the Company, commented, “We are pleased to report that LRPM has achieved significant growth over the last five months. With a 12% increase in properties under management so far this year, compared to an increase of 10% for all of last year, we are off to a very strong start. Our team’s dedication to providing exceptional service and our commitment to our clients have been the driving forces behind this success. We anticipate properties under management will continue growing throughout the year and expect the annual growth rate to be approximately 30%.”

“In 2023, property management revenue increased by $1.65 million, or 21%, compared to the previous year. This growth was primarily due to an increase in the number of properties under management, coupled with a management fee price increase effective September 1, 2023. The continued growth in properties under management is expected to contribute to a significant increase in top-line revenue in 2024. We look forward to continuing on our trajectory and delivering outstanding results for our property owners,” concluded Mr. La Rosa.

About La Rosa Holdings Corp.

La Rosa Holdings Corp. (Nasdaq: LRHC) is disrupting the real estate industry by offering agents a choice between a revenue share model or an annual fee-based model with 100% agent commissions. Leveraging its proprietary technology platform, La Rosa empowers agents and franchisees to deliver top-tier service to their clients. The Company provides both residential and commercial real estate brokerage services and offers technology-based products and services to its sales agents and franchise agents.

La Rosa's business model is structured around internal services for agents and external services for the public, including residential and commercial real estate brokerage, franchising, real estate brokerage education and coaching, and property management. The Company has 22 La Rosa Realty corporate real estate brokerage offices and branches located in Florida, California, Texas, and Georgia. The Company also has 15 La Rosa Realty franchised real estate brokerage offices and branches and two affiliated real estate brokerage offices in the United States and Puerto Rico. 

For more information, please visit: https://www.larosaholdings.com.

Stay connected with La Rosa, sign up for news alerts here: larosaholdings.com/email-alerts.

Forward-Looking Statements

This press release contains forward-looking statements regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, our ability to successfully integrate acquisitions into our business operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions, the successful integration of the Company’s past and future acquired brokerages, the effect of the recent National Association of Realtors' landmark settlement on our business operations, and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and other reports and documents that we file from time to time with the SEC, including our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024. Forward-looking statements contained in this press release are made only as of the date of this press release, and La Rosa does not undertake any responsibility to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.

For more information, contact: info@larosaholdings.com

Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: LRHC@crescendo-ir.com

FAQ

What is the recent growth reported by La Rosa (LRHC) in its property management subsidiary?

La Rosa reported a 12% increase in properties under management year-to-date by its subsidiary La Rosa Property Management

What was the property management revenue growth for La Rosa (LRHC) in 2023?

Property management revenue for La Rosa increased by $1.65 million, or 21%, in 2023.

What is La Rosa (LRHC) forecasting for its property management growth in 2024?

La Rosa anticipates the annual growth rate for properties under management to be approximately 30% in 2024.

What factors contributed to the revenue growth for La Rosa (LRHC) in its property management segment?

Revenue growth was driven by an increase in the number of properties under management and a management fee hike effective from September 1, 2023.