REAL ESTATE INVENTORY

9 Months Ended

Sep. 30, 2025

Inventory consists of the following:


	As of
(Dollars in thousands)	September 30, 2025		December 31, 2024
Real estate developed and under development	$	4,534,182	$	4,455,623
Real estate held for development or held for sale (1)	31,473		26,301
Total land inventory	4,565,655		4,481,924
Operating communities (2)	1,591,918		1,524,352
Capitalized interest	151,316		156,613
Total owned inventory	6,308,889		6,162,889
Consolidated real estate not owned	94,195		71,195
Total real estate inventory	$	6,403,084	$	6,234,084

(1) Real estate held for development or held for sale includes properties which are not in active production.

(2) Operating communities consist of all vertical construction costs relating to homes in progress and completed homes.

We have land option purchase contracts, land banking arrangements and other controlled lot agreements. We do not have title to the properties and we are not obligated to purchase the balance of the lots. The property owner and its creditors generally only have recourse against us in the form of retaining any non-refundable deposits.

A summary of owned and controlled lots is as follows:


	As of
	September 30, 2025	December 31, 2024
Owned lots:
Undeveloped	13,006	16,345
Under development	9,235	8,774
Finished	11,755	11,599
Total owned lots	33,996	36,718
Controlled lots:
Land option purchase contracts	8,832	9,529
Land banking arrangements	7,939	6,895
Other controlled lots(1)	33,797	33,011
Total controlled lots	50,568	49,435
Total owned and controlled lots	84,564	86,153
Homes in inventory	6,831	7,698

(1) Other controlled lots include single transaction take-downs and lots from our portion of unconsolidated joint ventures.

Lots which represent homes in progress and completed homes have been excluded from total owned lots. Controlled lots represent lots in which we have a contractual right to acquire real property, generally through an option contract, land banking arrangement, or a land deposit paid to a seller. Homes in inventory include any lots which have commenced vertical construction.

Capitalized Interest — Interest capitalized, incurred and amortized is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Interest capitalized - beginning of period	$	159,649	$	172,263	$	156,613	$	174,449
Interest incurred and capitalized	18,792		25,345		72,374		75,087
Interest amortized to cost of home closings	(27,125)		(30,064)		(77,671)		(81,992)
Interest capitalized - end of period	$	151,316	$	167,544	$	151,316	$	167,544