Sixth-largest U.S. homebuilder by home deliveries, with 8,196 during its 2015 fiscal year. Sizable operating platform with good geographic diversity, serving 39 markets in nine different states. KB Home pursues a land-long strategy, with over 47,000 owned and controlled lots as of Dec. 31, 2015, and has stated it expects to spend between $1.0 billion and $1.3 billion on land acquisition and development in 2016. We believe its land strategy will support our growth forecast over the next few years. KB has been able to increase its average sale price (ASP) substantially over the past few years by increasing its exposure to move-up product, but profitability remains lower than many similar-size homebuilding peers. Although we recognize improvement over the past
