Investments in Unconsolidated Entities (Tables)

12 Months Ended

Oct. 31, 2023

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 October 31, 2023, 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	16		2		43		3		64
Investment in unconsolidated entities (1)	$	351,154	$	65,285	$	531,823	$	10,779	$	959,041
Number of unconsolidated entities with funding commitments by the Company	9		—		19		1		29
Company’s remaining funding commitment to unconsolidated entities (2)	$	204,438	$	—	$	184,266	$	12,066	$	400,770

(1)    Our total investment includes $121.6 million related to 11 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $329.3 million as of October 31, 2023, inclusive of our investment in these joint ventures. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 25% to 50%.

(2)    Our remaining funding commitment includes approximately $105.4 million related to our unconsolidated joint venture-related variable interests in VIEs.

The table below provides information as of October 31, 2022, 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	15		3		41		4		63
Investment in unconsolidated entities (1)	$	343,314	$	49,385	$	441,399	$	18,216	$	852,314
Number of unconsolidated entities with funding commitments by the Company	9		1		18		1		29
Company’s remaining funding commitment to unconsolidated entities (2)	$	180,812	$	20,072	$	90,900	$	12,533	$	304,317

(1)    Our total investment includes $100.2 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $200.0 million as of October 31, 2022. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2)    Our remaining funding commitment includes approximately $105.0 million related to our unconsolidated joint venture-related variable interests in VIEs.

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 October 31, 2023, 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	12		2		42		56
Aggregate loan commitments	$	610,758	$	219,650	$	3,731,847	$	4,562,255
Amounts borrowed under commitments	$	445,506	$	135,723	$	2,152,872	$	2,734,101

The table below provides information at October 31, 2022, 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	10		2		35		47
Aggregate loan commitments	$	557,185	$	219,650	$	3,317,261	$	4,094,096
Amounts borrowed under commitments	$	444,306	$	17,583	$	1,774,567	$	2,236,456

New joint venture formations in fiscal 2020

The table below provides information on joint ventures entered into during fiscal 2023 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	1		5
Investment balance at October 31, 2023	$	14,867	$	59,567
Number of consolidated joint ventures entered into during the period	—		1
Carrying value of consolidated joint ventures’ assets at October 31, 2023	$	—	$	10,600
Noncontrolling interests in consolidated joint ventures at October 31, 2023	$	—	$	2,700

The table below provides information on joint ventures entered into during fiscal 2022 ($ amounts in thousands):

	Land Development Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures
Number of unconsolidated joint ventures entered into during the period	3		2		12		1
Investment balance at October 31, 2022	$	48,600	$	48,700	$	132,200	2,700

Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees

Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):

	October 31, 2023		October 31, 2022
Loan commitments in the aggregate	$	3,341,700	$	2,858,800
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)	$	688,000	$	597,800
Debt obligations borrowed in the aggregate	$	1,643,600	$	1,110,900
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	544,100	$	390,500
Estimated fair value of guarantees provided by us related to debt and other obligations	$	19,500	$	16,900
Terms of guarantees	1 month - 4.0 years		1 month - 3.7 years

(1)    At October 31, 2023 and 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $102.3 million and $95.0 million, respectively, related to our unconsolidated Joint Venture VIEs.

Consolidated Joint Venture Related Variable Interest Entities

The table below provides information as of October 31, 2023 and October 31, 2022, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	Balance Sheet Classification	October 31, 2023		October 31, 2022
Number of Joint Venture VIEs that the Company is the PB and consolidates		5		5
Carrying value of consolidated VIEs assets	Receivables, prepaid expenses, and other assets and Investments in unconsolidated entities	$	89,600	$	81,300
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	10,200	$	9,700

Our ownership interest in the above consolidated Joint Venture VIEs ranges from 82% to 98%.

Condensed balance sheet aggregated by type of business

Condensed Combined Balance Sheets:

	October 31, 2023
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	83,330	$	14,124	$	62,734	$	1,086	$	161,274
Inventory	1,112,382		277,438		—		35,325		1,425,145
Loan receivables, net	—		—		—		17,024		17,024
Rental properties	—		—		1,907,604		—		1,907,604
Rental properties under development	—		—		1,804,664		—		1,804,664
Other assets	210,831		15,961		157,481		924		385,197
Total assets	$	1,406,543	$	307,523	$	3,932,483	$	54,359	$	5,700,908
Debt, net of deferred financing costs	$	445,123	$	134,427	$	2,132,436	$	—	$	2,711,986
Other liabilities	131,798		32,625		312,691		21,752		498,866
Members’ equity	829,622		140,471		1,487,356		32,607		2,490,056
Total liabilities and equity	$	1,406,543	$	307,523	$	3,932,483	$	54,359	$	5,700,908
Company’s net investment in unconsolidated entities (1)	$	351,154	$	65,285	$	531,823	$	10,779	$	959,041

	October 31, 2022
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	132,344	$	19,628	$	102,270	$	642	$	254,884
Inventory	1,047,437		168,743		—		40,035		1,256,215
Loan receivables, net	—		—		—		48,217		48,217
Rental properties	—		—		1,702,690		—		1,702,690
Rental properties under development	—		—		1,413,607		—		1,413,607
Other assets	172,110		15,232		117,027		881		305,250
Total assets	$	1,351,891	$	203,603	$	3,335,594	$	89,775	$	4,980,863
Debt, net of deferred financing costs	$	443,061	$	16,770	$	1,788,923	$	—	$	2,248,754
Other liabilities	100,931		52,116		225,812		20,959		399,818
Members’ equity	807,899		134,717		1,320,859		68,816		2,332,291
Total liabilities and equity	$	1,351,891	$	203,603	$	3,335,594	$	89,775	$	4,980,863
Company’s net investment in unconsolidated entities (1)	$	343,314	$	49,385	$	441,399	$	18,216	$	852,314

(1)    Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $40.9 million and $18.5 million as of October 31, 2023 and 2022, respectively, and these differences are primarily a result of interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; distributions from entities in excess of the carrying amount of our net investment; unrealized gains on our retained joint venture interests; other than temporary impairments we have recognized; and gains recognized from the sale of our ownership interests.

Condensed statements of operations aggregate by type of business

Condensed Combined Statements of Operations and Comprehensive Income:

	For the year ended October 31, 2023
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Revenues	$	240,365	$	38,124	$	238,651	$	28,221	$	545,361
Cost of revenues	196,924		26,583		85,328		21,031		329,866
Other expenses	13,261		7,201		233,734		1,053		255,249
Total expenses	210,185		33,784		319,062		22,084		585,115
Income (loss) from operations	30,180		4,340		(80,411)		6,137		(39,754)
Other income (2)	2,500		205		102,865		241		105,811
Income before income taxes	32,680		4,545		22,454		6,378		66,057
Income tax provision (benefit)	214		367		(940)		—		(359)
Net income	$	32,466	$	4,178	$	23,394	$	6,378	$	66,416
Company’s equity in earnings of unconsolidated entities (3)	$	13,178	$	972	$	34,327	$	1,621	$	50,098

	For the year ended October 31, 2022
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Revenues	$	207,179	$	60,902	$	192,901	$	37,705	$	498,687
Cost of revenues	172,921		45,087		65,387		26,229		309,624
Other expenses	8,911		4,717		165,447		1,436		180,511
Total expenses	181,832		49,804		230,834		27,665		490,135
Loss on disposition of loans and REO	—		—		—		(113)		(113)
Income (loss) from operations	25,347		11,098		(37,933)		9,927		8,439
Other income (2)	23,292		804		36,805		—		60,901
Income (loss) before income taxes	48,639		11,902		(1,128)		9,927		69,340
Income tax provision (benefit)	348		508		(607)		—		249
Net income (loss)	$	48,291	$	11,394	$	(521)	$	9,927	$	69,091
Company’s equity (deficit) in earnings of unconsolidated entities (3)	$	20,402	$	1,068	$	(335)	$	2,588	$	23,723

	For the year ended October 31, 2021
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Revenues	$	110,330	$	88,534	$	141,373	$	21,357	$	361,594
Cost of revenues	81,207		105,436		61,278		10,506		258,427
Other expenses	2,622		4,887		143,050		1,947		152,506
Total expenses	83,829		110,323		204,328		12,453		410,933
Loss on disposition of loans and REO	—		—		—		(4,109)		(4,109)
Income (loss) from operations	26,501		(21,789)		(62,955)		4,795		(53,448)
Other income (2)	8,807		317		177,777		—		186,901
Income (loss) before income taxes	35,308		(21,472)		114,822		4,795		133,453
Income tax provision (benefit)	258		(875)		(824)		—		(1,441)
Net income (loss)	$	35,050	$	(20,597)	$	115,646	$	4,795	$	134,894
Company’s equity (deficit) in earnings of unconsolidated entities (3)	$	18,155	$	(241)	$	53,792	$	2,329	$	74,035

(2) Other income generated by Rental Property Joint Ventures for the years ending October 31, 2023, 2022, and 2021 include gains of $106.2 million, $29.9 million, and $177.6 million related to the sale of assets by multiple Rental Property Joint Ventures.

(3)    Differences between our income (loss) from unconsolidated entities and our percentage interest in the underlying net income (loss) of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by join ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; 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.