Demo class
public class Demo
{
public static void main(String[] args)
{
Coordinate2D c1 = new Coordinate2D(5, 6);
/* paused here */
/* code not yet run */
}
}
The Coordinate2D constructor finishes executing. The new keyword returns the memory address of the newly created object/instance.
The left side of assignment operator executes next. The code Coordinate2D c1 creates a variable of type Coordinate2D named c1.
The assignment operator (=) sets the value of c1 to the memory address of the newly created object.
Memory diagram

The memory address of the object is represented as an arrow. It is common to say that c1 refers/points to the object.
Parameters initX and initY no longer exist, since the constructor is no longer executing.