Investment In Unconsolidated Entities (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019 and reconciles the Company’s share to the amount recognized as equity in (loss) earnings (in thousands):

	Nine Months Ended September 30,
	2020		2019
Land sale revenues	$	23,054	$	231,216
Cost of land sales	(15,304)		(153,486)
Other costs and expenses	(35,995)		(48,525)
Net (loss) income of Great Park Venture	$	(28,245)	$	29,205
The Company’s share of net (loss) income	$	(10,592)	$	10,952
Basis difference amortization	(1,204)		(3,694)
Other-than-temporary investment impairment	(26,851)		—
Equity in (loss) earnings from Great Park Venture	$	(38,647)	$	7,258

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

	September 30, 2020		December 31, 2019
Inventories	$	906,920	$	870,861
Cash and cash equivalents	146,087		293,002
Receivable and other assets	25,567		32,395
Total assets	$	1,078,574	$	1,196,258
Accounts payable and other liabilities	$	147,916	$	159,965
Distribution payable to Legacy Interests	—		76,272
Redeemable Legacy Interests	133,695		133,695
Capital (Percentage Interest)	796,963		826,326
Total liabilities and capital	$	1,078,574	$	1,196,258
The Company’s share of capital in Great Park Venture	$	298,861	$	309,872
Unamortized basis difference	93,908		121,963
The Company’s investment in the Great Park Venture	$	392,769	$	431,835

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

	Nine Months Ended September 30,
	2020		2019
Rental revenues	$	22,141	$	25,708
Rental operating and other expenses	(5,342)		(5,177)
Depreciation and amortization	(8,427)		(11,319)
Gain on asset sales, net	112,260		—
Interest expense	(8,547)		(12,938)
Net income (loss) of Gateway Commercial Venture	$	112,085	$	(3,726)
Equity in earnings (loss) from Gateway Commercial Venture	$	84,064	$	(2,795)

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

	September 30, 2020		December 31, 2019
Real estate and related intangible assets, net	$	91,231	$	451,988
Other assets	14,157		21,410
Total assets	$	105,388	$	473,398
Notes payable, net	$	29,366	$	302,344
Other liabilities	10,731		35,848
Members’ capital	65,291		135,206
Total liabilities and capital	$	105,388	$	473,398
The Company’s investment in the Gateway Commercial Venture	$	48,968	$	101,404