Real Estate

6 Months Ended

Mar. 31, 2020

Real estate consists of:


	March 31, 2020		September 30, 2019
	(In millions)
Developed and under development projects	$	1,171.0	$	1,011.8
Undeveloped land	28.2		17.1
	$	1,199.2	$	1,028.9

In the six months ended March 31, 2020, the Company invested $283.5 million for the acquisition of residential real estate and $223.5 million for the development of residential real estate. At March 31, 2020 and September 30, 2019, undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R. Horton within approximately one year of its purchase or, if D.R. Horton elects, at an earlier date, at a sales price equal to the carrying value of the land at the time of sale plus additional consideration which ranges from 12% to 16% per annum.

During the latter part of March and to date in April, the impacts of COVID-19 and the related widespread reductions in economic activity have affected the Company’s business operations and the demand for residential lots. The Company’s lot sales pace has declined as homebuilders have slowed their purchases of lots to adjust to lower levels of home sales orders as a result of the pandemic. There is uncertainty regarding the extent and timing of disruption that COVID-19 and related government directives, actions and economic relief efforts will have on the U.S. economy, capital markets and demand for our lots. The extent to which COVID-19 impacts the Company’s operational and financial performance will depend on future developments, including the duration and spread of COVID-19 and the impact on the Company’s customers, trade partners and employees, all of which are highly uncertain and cannot be predicted. If economic and housing market conditions are adversely affected for a prolonged period, the Company may be required evaluate its real estate for potential impairment. These evaluations could result in impairment charges which could be significant.