31.12.2007 15:00 Real Estate
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M/I said it will record an $80 million charge in the fourth quarter to reflect land impairment charges, and said further charges are likely. The company also expects a $50 million cash refund in the second quarter of 2008.
The land sold represents 3,700 lots, or more than a fifth of the 16,767 lots at the end of the third quarter, Columbus, Ohio-based M/I said.
"The cash generated from these land sales, combined with our year end home deliveries, will significantly reduce our bank debt," CEO Robert Schottenstein said in a statement.
M/I shares, which closed last week at $10.10, have lost almost three-quarters of their value over the past year, compared with a 56 percent drop by the Dow Jones home building index (.DJUSHB) in that same timespan.
(Reporting by Nick Zieminski, editing by Dave Zimmerman)
