Investments In Unconsolidated Entities

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments In unconsolidated entities

Investments in unconsolidated entities

We participate in a number of joint ventures and other investments with independent third parties. These entities generally purchase, develop, and sell land, including selling land to us for use in our homebuilding operations. Our investments in such entities totaled $146.8 million and $98.2 million at December 31, 2022 and 2021, respectively. In 2022, 2021, and 2020, we recognized earnings from unconsolidated joint ventures of $50.7 million, $17.2 million, and $1.9 million, respectively. We received distributions from our unconsolidated joint ventures of $21.7 million, $53.9 million, and $27.9 million in 2022, 2021, and 2020, respectively. We made capital contributions to our unconsolidated joint ventures of $64.7 million, $101.6 million, and $0.8 million in 2022, 2021, and 2020, respectively.

At December 31, 2022, aggregate outstanding debt of unconsolidated joint ventures was $77.3 million, of which $42.0 million related to one joint venture in which we have a 50% interest. In connection with this loan, we and our joint venture partner provided customary limited recourse guaranties in which our maximum financial loss exposure is limited to our pro rata share of the debt outstanding.

The timing of cash flows related to a joint venture and any related financing agreements varies by agreement. If additional capital contributions are required and approved by the joint venture, we would need to contribute our pro rata portion of those capital needs in order to not dilute our ownership in the joint ventures. While future capital contributions may be required, we believe the total amount of such contributions will be limited. Our maximum financial exposure related to joint ventures is unlikely to exceed the combined investment and limited recourse guaranty totals.