v3.23.1
Investments in Unconsolidated Entities (Tables)
 6 Months Ended
Apr. 30, 2023
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Summary of Joint Venture Information he table below provides information as of April 30, 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
16343466
Investment in unconsolidated entities (1)
$341,358 $66,271 $468,336 $11,678 $887,643 
Number of unconsolidated entities with funding commitments by the Company
9—221 32
Company’s remaining funding commitment to unconsolidated entities (2)
$215,524 $— $107,524 $11,570 $334,618 
(1)    Our total investment includes $104.8 million related to 13 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $201.2 million as of April 30, 2023. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.
(2)    Our remaining funding commitment includes approximately $106.2 million related to our unconsolidated joint venture-related variable interests in VIEs.
The table below provides information as of October 31, 2022, regarding active joint ventures that we are invested in, by joint venture category ($ amounts in thousands):
 Land
Development
Joint Ventures		Home Building
Joint Ventures		Rental Property
Joint Ventures		Gibraltar
Joint Ventures		Total
Number of unconsolidated entities
15341463
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
91181 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 $105.0 million related to our unconsolidated joint venture-related variable interests in VIEs.
Summary of Joint Ventures Borrowing information
Certain joint ventures in which we have investments obtained debt financing to finance a portion of their activities. The table below provides information at April 30, 2023, regarding the debt financing obtained by category ($ amounts in thousands):
 Land
Development
Joint Ventures		Home Building
Joint Ventures		Rental Property
Joint Ventures		Total
Number of joint ventures with debt financing
1124053
Aggregate loan commitments$576,959 $219,650 $3,638,795 $4,435,404 
Amounts borrowed under loan commitments
$449,637 $78,114 $2,036,446 $2,564,197 
The table below provides information at October 31, 2022, regarding the debt financing obtained by category ($ amounts in thousands):
 Land
Development
Joint Ventures		Home Building
Joint Ventures		Rental Property
Joint Ventures		Total
Number of joint ventures with debt financing
1023547
Aggregate loan commitments$557,185 $219,650 $3,317,261 $4,094,096 
Amounts borrowed under loan commitments$444,306 $17,583 $1,774,567 $2,236,456 
New joint venture formations
The table below provides information on joint ventures entered into during the six-months ended April 30, 2023 ($ amounts in thousands):
Land Development Joint VenturesRental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period12
Investment balance at April 30, 2023$11,755 $4,795 
The table below provides information on joint ventures entered into during the six-months ended April 30, 2022 ($ amounts in thousands):
Land Development Joint VenturesRental Property Joint VenturesGibraltar Joint Ventures
Number of unconsolidated joint ventures entered into during the period27 1
Investment balance at April 30, 2022$13,816 $69,513 $2,093 
Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees
Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):
April 30, 2023October 31, 2022
Loan commitments in the aggregate$3,181,400 $2,858,800 
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)
$654,400 $597,800 
Debt obligations borrowed in the aggregate$1,436,200 $1,110,900 
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed$487,600 $390,500 
Estimated fair value of guarantees provided by us related to debt and other obligations$19,000 $16,900 
Terms of guarantees
1 month -
3.9 years
1 month -
3.7 years
(1)    At April 30, 2023 and October 31, 2022, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million related to our unconsolidated Joint Venture VIEs.
Consolidated Joint Venture Related Variable Interest Entities
The table below provides information as of April 30, 2023 and October 31, 2022, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):
Balance Sheet ClassificationApril 30,
2023		October 31,
2022
Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates
6 5 
Carrying value of consolidated VIEs assetsInventory and investments in unconsolidated entities$84,300 $81,300 
Our partners’ interests in consolidated VIEsNoncontrolling interest$9,600 $9,700 
Our ownership interest in the above consolidated Joint Venture VIEs ranges from 80% to 98%.
Condensed balance sheet
Condensed Combined Balance Sheets:
 April 30,
2023		October 31,
2022
Cash and cash equivalents$135,511 $254,884 
Inventory1,342,879 1,256,215 
Loans receivable – net44,807 48,217 
Rental properties1,887,721 1,702,690 
Rental properties under development1,596,007 1,413,607 
Other assets364,735 305,250 
Total assets$5,371,660 $4,980,863 
Debt – net of deferred financing costs$2,555,116 $2,248,754 
Other liabilities392,710 399,818 
Partners’ equity2,423,834 2,332,291 
Total liabilities and equity$5,371,660 $4,980,863 
Company’s net investment in unconsolidated entities (1)
$887,643 $852,314 
(1)    Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $4.4 million and $18.5 million as of April 30, 2023 and October 31, 2022, respectively, and these differences are primarily a result of unrealized gains on our retained joint venture interests; distributions from entities in excess of the carrying amount of our net investment; interest capitalized on our investments; other than temporary impairments we have recognized; gains recognized from the sale of our ownership interests; and the estimated fair value of the guarantees provided to the joint ventures.
Condensed statements of operations and comprehensive income
Condensed Combined Statements of Operations:
 Three months ended April 30,Six months ended April 30,
 2023202220232022
Revenues$125,397 $130,771 $237,116 $286,523 
Cost of revenues78,613 86,219 137,966 194,701 
Other expenses56,655 39,172 119,729 82,776 
Total expenses135,268 125,391 257,695 277,477 
Loss on disposition of loans and real estate owned— — — (113)
(Loss) income from operations(9,871)5,380 (20,579)8,933 
Other (loss) income (2)
(2,276)7,064 (3,632)40,410 
(Loss) income before income taxes(12,147)12,444 (24,211)49,343 
Income tax (benefit) expense(148)74 (166)156 
Net (loss) income(11,999)12,370 (24,045)49,187 
Company’s (loss) income from unconsolidated entities (3)
$(5,302)$2,933 $(9,735)$24,970 
(2)    The six months ended April 30, 2022 includes $29.9 million, related to the sale of assets by our Rental Property Joint Ventures.
(3)    Differences between our (loss) income from unconsolidated entities and the underlying net (loss) income 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 joint 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.