Investment In Unconsolidated Entities (Tables)

6 Months Ended

Jun. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Significant Unobservable Inputs Used to Determine Fair Value

Below are the most significant unobservable inputs used in the Company’s discounted cash flow model to determine the estimated fair value (level 3) of the Company’s investment in the Great Park Venture at the time the other-than-temporary impairment was recognized:

Unobservable inputs	Range
Annual home price appreciation	0% - 7%
Annual horizontal development cost appreciation	0% - 3%
Average annual absorption of homesites (market rate homesites)	900
2020 home price range	$640,000 - $1,300,000
Unlevered discount rate	9%

Equity Method Investments

The following table summarizes the statements of operations of the Great Park Venture for the six months ended June 30, 2020 and 2019 and reconciles the Company’s share to the amount recognized as equity in (loss) earnings (in thousands):

	Six Months Ended June 30,
	2020		2019
Land sale revenues	$	22,826	$	192,579
Cost of land sales	(15,304)		(128,968)
Other costs and expenses	(23,799)		(32,036)
Net (loss) income of Great Park Venture	$	(16,277)	$	31,575
The Company’s share of net (loss) income	$	(6,104)	$	11,841
Basis difference amortization	(1,497)		(3,893)
Other-than-temporary investment impairment	(26,851)		—
Equity in (loss) earnings from Great Park Venture	$	(34,452)	$	7,948

The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of June 30, 2020 and December 31, 2019 (in thousands):

	June 30, 2020		December 31, 2019
Inventories	$	895,536	$	870,861
Cash and cash equivalents	169,512		293,002
Receivable and other assets	27,247		32,395
Total assets	$	1,092,295	$	1,196,258
Accounts payable and other liabilities	$	149,669	$	159,965
Distribution payable to Legacy Interests	—		76,272
Redeemable Legacy Interests	133,695		133,695
Capital (Percentage Interest)	808,931		826,326
Total liabilities and capital	$	1,092,295	$	1,196,258
The Company’s share of capital in Great Park Venture	$	303,349	$	309,872
Unamortized basis difference	93,615		121,963
The Company’s investment in the Great Park Venture	$	396,964	$	431,835

The following table summarizes the statements of operations of the Gateway Commercial Venture for the six months ended June 30, 2020 and 2019 (in thousands):

	Six Months Ended June 30,
	2020		2019
Rental revenues	$	16,982	$	17,134
Rental operating and other expenses	(3,427)		(3,217)
Depreciation and amortization	(7,432)		(7,542)
Gain on asset sale, net	37,413		—
Interest expense	(6,942)		(8,689)
Net income (loss) of Gateway Commercial Venture	$	36,594	$	(2,314)
Equity in earnings (loss) from Gateway Commercial Venture	$	27,446	$	(1,735)

The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of June 30, 2020 and December 31, 2019 (in thousands):

	June 30, 2020		December 31, 2019
Real estate and related intangible assets, net	$	377,951	$	451,988
Other assets	27,308		21,410
Total assets	$	405,259	$	473,398
Notes payable, net	$	273,845	$	302,344
Other liabilities	34,614		35,848
Members’ capital	96,800		135,206
Total liabilities and capital	$	405,259	$	473,398
The Company’s investment in the Gateway Commercial Venture	$	72,600	$	101,404