Real Estate (Notes)

6 Months Ended

Mar. 31, 2022

Real estate consists of:


	March 31, 2022		September 30, 2021
	(In millions)
Developed and under development projects	$	1,861.7	$	1,824.7
Undeveloped land	98.8		80.5
	$	1,960.5	$	1,905.2

In the six months ended March 31, 2022, the Company invested $220.4 million for the acquisition of residential real estate and $495.4 million for the development of residential real estate. At March 31, 2022 and September 30, 2021, undeveloped land primarily consisted of undeveloped land which the Company has the contractual right to sell to D.R. Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12% to 16% per annum.

Each quarter, the Company reviews the performance and outlook for all of its real estate projects for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. As of March 31, 2022, the Company performed detailed impairment evaluations of one real estate project with a carrying value of $8.8 million and recorded impairment charges of $3.8 million during the three months ended March 31, 2022 to reduce the carrying value of the impaired real estate project to fair value. There were no impairment charges recorded in the prior year periods.

In the three and six months ended March 31, 2022 and 2021, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $1.6 million and $2.2 million, respectively, compared to $0.6 million and $0.9 million in the prior year periods. These land option charges and the impairment discussed above are included in cost of sales in the consolidated statements of operations.