Investments in Unconsolidated Entities (Tables)

3 Months Ended

Jan. 31, 2020

Investments in and Advances to Affiliates, Schedule of Investments [Abstract]

Summary of Joint Venture Information [Table Text Block]

The table below provides information as of January 31, 2020, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Number of unconsolidated entities	8		4		21		7		40
Investment in unconsolidated entities	$	101,946	$	48,860	$	191,443	$	22,103	$	364,352
Number of unconsolidated entities with funding commitments by the Company	2		1		1		1		5
Company’s remaining funding commitment to unconsolidated entities	$	28,108	$	1,400	$	224	$	6,830	$	36,562

Summary of Joint Ventures Borrowing information [Table Text Block]

Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at January 31, 2020, regarding the debt financing obtained by category ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	3		1		19		23
Aggregate loan commitments	$	100,842	$	73,021	$	1,441,784	$	1,615,647
Amounts borrowed under loan commitments	$	86,092	$	73,021	$	1,009,618	$	1,168,731

Condensed balance sheet

Condensed Balance Sheets:

	January 31, 2020		October 31, 2019
Cash and cash equivalents	$	68,237	$	85,819
Inventory	516,740		579,226
Loans receivable, net	65,375		56,545
Rental properties	923,356		1,021,848
Rental properties under development	675,921		535,197
Real estate owned	12,274		12,267
Other assets	160,840		212,761
Total assets	$	2,422,743	$	2,503,663
Debt, net of deferred financing costs	$	1,166,882	$	1,226,857
Other liabilities	177,092		175,827
Members’ equity	1,078,769		1,100,563
Noncontrolling interest	—		416
Total liabilities and equity	$	2,422,743	$	2,503,663
Company’s net investment in unconsolidated entities (1)	$	364,352	$	366,252

 

(1)

Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of impairments related to our investments in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment.

Condensed statements of operations and comprehensive income

Condensed Statements of Operations:

	Three months ended January 31,
	2020			2019
Revenues	$	133,170		$	153,230
Cost of revenues	95,308			131,755
Other expenses	41,183			18,475
Total expenses	136,491			150,230
Gain on disposition of loans and real estate owned	—			3,694
(Loss) income from operations	(3,321		)	6,694
Other income	612			647
(Loss) income before income taxes	(2,709		)	7,341
Income tax provision	140			265
Net (loss) income including earnings from noncontrolling interests	(2,849		)	7,076
Less: income attributable to noncontrolling interest	—			(2,109		)
Net (loss) income attributable to controlling interest	$	(2,849	)	$	4,967
Company’s equity in earnings of unconsolidated entities (1)	$	12,141		$	6,140

(1)

Differences between our equity in earnings of unconsolidated entities and the underlying net income of the entities are primarily a result of distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.