Homebuilder M/I Homes Land Sales, Exits Florida Real Estate Market

Homebuilder M/I Homes Inc. said it will take charges of about $80 million in the fourth quarter on the sale of 3,700 lots and expects further impairment charges related to its inventory during the quarter.

M/I Homes sold the lots, which accounted for about 22 percent of total lots owned at the end of the third quarter, for $82 million. Homebuilders have been hurt by a weak housing market and declining prices.

As part of the sales, M/I Homes also sold all its current lots in the West Palm Beach, Florida area and is completely exiting development in the market.

The homebuilder is exiting the area, one of its smallest locations, as it tries to focus on markets that has “the best opportunity for acceptable and consistent returns,” Robert Schottenstein, the company’s chief executive and president, said in a statement.

The sale of land will also reduce M/I Home’s bank debt and strengthen its balance sheet, Schottenstein said.

M/I Homes expects to receive a $50 million cash tax refund in the second quarter of 2008 related to the sales.

M/I Homes Takes Charge on Land Sales
Associated Press