Real Estate (Notes)

9 Months Ended

Jun. 30, 2022

Real estate consists of:


	June 30, 2022		September 30, 2021
	(In millions)
Developed and under development projects	$	1,950.6	$	1,824.7
Undeveloped land	103.7		80.5
	$	2,054.3	$	1,905.2

In the nine months ended June 30, 2022, the Company invested $299.0 million for the acquisition of residential real estate and $784.7 million for the development of residential real estate. At June 30, 2022 and September 30, 2021, undeveloped land primarily consists 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 a result of this process, no impairment charges were recorded during the three months ended June 30, 2022. During the nine months ended June 30, 2022, impairment charges totaled $3.8 million. There were no impairment charges recorded in the prior year periods.

In the three and nine months ended June 30, 2022, earnest money and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $1.0 million and $3.2 million, respectively, compared to $0.7 million and $1.6 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.