Business Combination

9 Months Ended

Sep. 30, 2023

The Company has a noncontrolling interest attributable to its 20% minority interest in GRBK GHO Homes, LLC (“GRBK GHO”) owned by its Florida-based partner that is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s condensed consolidated financial statements.

On March 23, 2023, the Company and the minority partner amended the operating agreement of GRBK GHO to change the start of the put and purchase options from April 2024 to April 2027. Refer to Note 2 in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for details on the put/call structure of this agreement.

The following tables show the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three and nine months ended September 30, 2023 and 2022 (in thousands):


	Three Months Ended September 30,
	2023		2022
Redeemable noncontrolling interest, beginning of period	$	32,995	$	22,001
Net income attributable to redeemable noncontrolling interest partner	1,672		1,654
Distributions of income to redeemable noncontrolling interest partner	—		—
Change in fair value of redeemable noncontrolling interest	569		2,005
Redeemable noncontrolling interest, end of period	$	35,236	$	25,660


	Nine Months Ended September 30,
	2023		2022
Redeemable noncontrolling interest, beginning of period	$	29,239	$	21,867
Net income attributable to redeemable noncontrolling interest partner	5,131		3,345
Distributions of income to redeemable noncontrolling interest partner	(1,840)		—
Change in fair value of redeemable noncontrolling interest	2,706		448
Redeemable noncontrolling interest, end of period	$	35,236	$	25,660