Quarterly report [Sections 13 or 15(d)]

REAL ESTATE AND CAPITALIZED INTEREST (Tables)

v3.26.1
REAL ESTATE AND CAPITALIZED INTEREST (Tables)
 6 Months Ended
Jun. 30, 2026
Inventory Disclosure [Abstract]  
Schedule of Real Estate
Real estate consists of the following (in thousands):
As of
June 30, 2026 December 31, 2025
Homes completed and under construction (1)
$ 1,891,356  $ 2,069,548 
Finished home sites and home sites under development (2)
3,922,515  3,917,572 
Consolidated real estate not owned (3)
78,107  — 
Total $ 5,891,978  $ 5,987,120 

(1)Includes the allocated land and land development costs associated with each lot for sold and unsold homes.
(2)Includes raw land, land held for development, land held for sale and communities in mothball status, less impairments, if any. Land held for development, land held for sale and communities in mothball status totaled $192.4 million and $164.4 million as of June 30, 2026 and December 31, 2025, respectively. We do not capitalize interest for these inactive assets, and all ongoing costs of land ownership (i.e. property taxes, homeowner association dues, etc.) are expensed as incurred.
(3)Represents purchase contracts where we have a specific performance obligation. See Note 3 for additional information on consolidated real estate not owned.
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,
2026 2025 2026 2025
Capitalized interest, beginning of period $ 84,464  $ 57,107  $ 77,064  $ 53,678 
Interest incurred 20,114  19,995  40,119  34,709 
Interest expensed (2,187) —  (2,774) — 
Interest amortized to cost of home and land closings (15,654) (13,288) (27,672) (24,573)
Capitalized interest, end of period $ 86,737  $ 63,814  $ 86,737  $ 63,814 
As discussed in Note 1, and in accordance with ASC 360-10, all of our land inventory and related real estate assets are periodically reviewed for recoverability when certain criteria are met, but at least annually, as our inventory is considered “long-lived” in accordance with GAAP. Based on these reviews, we recorded the following impairment charges during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Real estate inventory impairments:
West $ —  $ —  $ —  $ — 
Central 2,191  —  3,464  — 
East $ 1,391  —  $ 2,545  — 
Total $ 3,582  $ —  $ 6,009  $ — 
Impairments of land held for sale:
West $ —  $ —  $ —  $ — 
Central —  —  —  — 
East $ —  —  $ —  — 
Total $ —  $ —  $ —  $ — 
Total impairments:
West $ —  —  $ —  — 
Central 2,191  —  3,464  — 
East $ 1,391  —  $ 2,545  — 
Total $ 3,582  $ —  $ 6,009  $ — 

As discussed in Note 1, non-refundable deposits are expensed to Cost of home closings when a land acquisition is terminated or no longer considered probable. The following tables summarizes the write-offs of non-refundable deposits and associated pre-acquisition costs for terminated land contracts during the periods presented (in thousands):

Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Terminated option/purchase contracts and related pre-acquisition costs:
West $ 126  $ 561  $ 226  $ 1,123 
Central 150  222  492  558 
East —  3,422  $ 931  3,957 
Total $ 276  $ 4,205  $ 1,649  $ 5,638 
Fair Value Measurements, Recurring and Nonrecurring Based on these reviews, we recorded the following impairment charges during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Real estate inventory impairments:
West $ —  $ —  $ —  $ — 
Central 2,191  —  3,464  — 
East $ 1,391  —  $ 2,545  — 
Total $ 3,582  $ —  $ 6,009  $ — 
Impairments of land held for sale:
West $ —  $ —  $ —  $ — 
Central —  —  —  — 
East $ —  —  $ —  — 
Total $ —  $ —  $ —  $ — 
Total impairments:
West $ —  —  $ —  — 
Central 2,191  —  3,464  — 
East $ 1,391  —  $ 2,545  — 
Total $ 3,582  $ —  $ 6,009  $ — 
Write Offs Of Terminated Land The following tables summarizes the write-offs of non-refundable deposits and associated pre-acquisition costs for terminated land contracts during the periods presented (in thousands):
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Terminated option/purchase contracts and related pre-acquisition costs:
West $ 126  $ 561  $ 226  $ 1,123 
Central 150  222  492  558 
East —  3,422  $ 931  3,957 
Total $ 276  $ 4,205  $ 1,649  $ 5,638