KB Home has told its investors that it plans to sell 20 land parcels, which contain over 2,000 home lots, instead of building on and selling them, according to the Wall Street Journal’s Joshua Jamerson. The company has estimated taking a charge of about $30-40 million in the fourth quarter as a result.
Most of these residential lots are in KB Home’s Southeast region. The parcels include land in excess of near-term requirements, land where the company now believes investment in development is not justified, land located in areas outside of the company’s served markets and land entitled for certain product types that differ from KB Home’s primary offerings.
KB Home is keeping to its previously-disclosed financial targets for the fourth quarter of 2016, and reported that net orders for the first six weeks of the fourth quarter had increased 14% YOY. KB Home’s housing revenues previously rose 14% in the third quarter.