Mostly in the southeast region, the land includes that in which management believes investment in development in not justified, or located outside of served markets, or entitled for different product types than what the company typically offers.
KBH estimates it will take an inventory-related charge of $30M-$40M in FQ4.
The news came at the company's investor meeting yesterday. Other items:
Q4 financial targets are reaffirmed, and net orders for the first six weeks of Q4 gained 14% Y/Y.
For 2017, the company is aiming at housing revenue of $3.8B-$4.2B, ASP of $370K-$385K, operating income margin of 5.7-6.3%; average community count flat from 2016.
Shares fell 5.45% in very thin after hours trading.