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Note 2 - Real Estate and Capitalized Interest
6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Real Estate Disclosure [Text Block]

NOTE 2 REAL ESTATE AND CAPITALIZED INTEREST

 

Real estate consists of the following (in thousands):

 

  

As of

 
  

June 30, 2022

  

December 31, 2021

 

Homes under contract under construction (1)

 $1,527,013  $1,039,822 

Unsold homes, completed and under construction (1)

  748,845   484,999 

Model homes (1)

  89,539   81,049 

Finished home sites and home sites under development (2) (3)

  2,108,665   2,128,538 

Total

 $4,474,062  $3,734,408 

 

(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. 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 $58.2 million and $62.1 million as of June 30, 2022 and December 31, 2021, respectively.

 

Subject to sufficient qualifying assets, we capitalize our development period interest costs incurred to applicable qualifying assets in connection with our real estate development and construction activities. Capitalized interest is allocated to active real estate when incurred and charged to Cost of closings when the related property is delivered. A summary of our capitalized interest is as follows (in thousands):

 

  

Three Months Ended June 30,

  

Six Months Ended June 30,

 
  

2022

  

2021

  

2022

  

2021

 

Capitalized interest, beginning of period

 $59,082  $57,540  $56,253  $58,940 

Interest incurred

  15,171   16,321   30,384   32,413 

Interest expensed

     (77)  (41)  (167)

Interest amortized to cost of home and land closings

  (12,794)  (17,074)  (25,137)  (34,476)

Capitalized interest, end of period

 $61,459  $56,710  $61,459  $56,710