Meritage Homes Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

REAL ESTATE AND CAPITALIZED INTEREST (Tables)

REAL ESTATE AND CAPITALIZED INTEREST (Tables)

6 Months Ended

Jun. 30, 2021

Real estate consists of the following (in thousands):


	As of
	June 30, 2021		December 31, 2020
Homes under contract under construction (1)	$	1,069,511	$	873,365
Unsold homes, completed and under construction (1)	353,047		357,861
Model homes (1)	73,846		82,502
Finished home sites and home sites under development (2) (3)	1,755,383		1,464,311
Total	$	3,251,787	$	2,778,039

(1)Includes the allocated land and land development costs associated with each lot for these homes.

(2)Includes raw land, land held for development and land held for sale, less impairments, if any. Land held for development primarily represents land and land development costs related to land where development activity is not currently underway but is expected to begin in the future. For these parcels, we have chosen not to currently develop certain land holdings as they typically represent a portion or phases of a larger land parcel that we plan to build out over several years. We do not capitalize interest for inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.

(3)Includes land held for sale of $29.9 million and $72.7 million as of June 30, 2021 and December 31, 2020, respectively.

Summary of Capitalized Interest

A summary of our capitalized interest is as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Capitalized interest, beginning of period	$	57,540	$	78,162	$	58,940	$	82,014
Interest incurred	16,321		17,550		32,413		34,085
Interest expensed	(77)		(2,105)		(167)		(2,121)
Interest amortized to cost of home and land closings	(17,074)		(20,725)		(34,476)		(41,096)
Capitalized interest, end of period	$	56,710	$	72,882	$	56,710	$	72,882