Real Estate and Tangible Water Assets

9 Months Ended

Sep. 30, 2015

The costs assigned to the various components of real estate and tangible water assets were as follows (in thousands):



	September 30, 2015		December 31, 2014
Real estate and improvements held and used, net of accumulated depreciation of $11,558 and $10,899 at September 30, 2015 and December 31, 2014, respectively	$	9,914	$	10,574
Residential real estate and home construction inventories	384,748		322,938
Other real estate inventories completed or under development	10,000		10,308
Tangible water assets	42,518		42,530
Total real estate and tangible water assets	$	447,180	$	386,350

Amortization of real estate improvements was approximately $219,000 for each of the three months ended September 30, 2015 and 2014, and was approximately $659,000 for each of the nine months ended September 30, 2015 and 2014.

Impairment Losses for the Nine Months Ended September 30, 2015:

There were no material impairment losses recognized on real estate and tangible water assets during the nine months ended September 30, 2015.

Impairment Losses for the Year Ended December 31, 2014:

During 2014, certain water rights applications were denied by the New Mexico State Engineer and as a result, the Company recorded an impairment loss of $3.5 million by writing down the project’s capitalized costs to zero.

During 2014, the Company decided to sell a property “as-is” as opposed to performing development activities as originally planned and has therefore written down the carrying value of the asset to the estimated fair value. The Company has reduced the carrying value of the real estate balance to $1.4 million by recording an impairment loss of $2.9 million.