Real Estate (Notes)

6 Months Ended

Mar. 31, 2023

Real estate consists of:


	March 31, 2023		September 30, 2022
	(In millions)
Developed and under development projects	$	1,920.4	$	1,932.6
Land held for future development	67.6		89.8
	$	1,988.0	$	2,022.4

In the six months ended March 31, 2023, the Company invested $47.2 million for the acquisition of residential real estate and $374.4 million for the development of residential real estate. At March 31, 2023 and September 30, 2022, land held for future development 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 for indicators of potential impairment and performs detailed impairment evaluations and analyses when necessary. As of March 31, 2023, the Company performed detailed impairment evaluations on two real estate projects with an aggregate carrying value of $35.5 million and, as a result of this process, recorded impairment charges of $19.4 million during the three months ended March 31, 2023 to reduce the carrying value of the impaired real estate projects to fair value. During the three months ended March 31, 2022, impairment charges totaled $3.8 million.

In the three and six months ended March 31, 2023, land purchase contract deposit and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $0.9 million and $3.3 million, respectively, compared to $1.6 million and $2.2 million in the prior year periods. These land option charges and the impairments discussed above are included in cost of sales in the consolidated statements of operations.