Related Party Transactions

3 Months Ended

Mar. 31, 2025

Related Party Transactions [Abstract]

Related Party Transactions

Note 4. Related Party Transactions

Prior to the Spin-Off, the Company was a wholly owned subsidiary of Lennar. Following the Spin-Off, the Company is an independent company of which 20% of its shares are owned by Lennar as of March 31, 2025. The primary transactions between the Company and Lennar consist of payments for (i) monthly option payments from Lennar in consideration for its purchase options on properties, (ii) option deposits paid by Lennar for the exclusive purchase option of a property, and (iii) cash payments from Lennar when homesite purchase options are exercised.

As of March 31, 2025, the Company recorded the following related to Lennar in the unaudited condensed consolidated financial statements:

•Option fee receivables of $47.2 million and other receivables of $0.4 million due from Lennar;

•Homesite inventory of $5.7 billion; and

•Option deposit liabilities of $559.2 million.

For the three months ended March 31, 2025, the Company derived 97% of its total operating revenues from Lennar. Given the concentration of revenue from Lennar, any significant adverse in Lennar’s financial condition could impact the Company’s operations and financial position. The Company believes it is not exposed to significant credit risk for Lennar as of the date of these unaudited consolidated condensed financial statements.

Following the Spin-Off, the Company is externally managed and advised by KL. The Company pays a Management Fee each quarter as described in Note 2. Basis of Presentation and Significant Accounting Policies, Management Fee. For the three months ended March 31, 2025, the management fee paid to KL was $12.1 million. There were no amounts payable to or amounts receivable from KL as of March 31, 2025.