INTANGIBLE ASSETS, NET — RELATED PARTY |
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| Intangible Asset, Goodwill and Other [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSETS, NET — RELATED PARTY | INTANGIBLE ASSETS, NET—RELATED PARTY Intangible assets consist of (i) the contract value of the incentive compensation provisions of the A&R DMA with the Great Park Venture and (ii) identifiable intangible assets acquired in connection with the acquisition of the Hearthstone Venture (see Note 3). The intangible assets acquired through the Hearthstone Venture acquisition include (i) investor relationships representing established relationships with institutional investors and capital partners that are expected to contribute recurring fee revenues and (ii) joint venture projects representing contractual rights to earn management and performance fees from existing residential financing and development arrangements. The incentive compensation intangible asset will be amortized over the contract period based on the pattern in which the economic benefits are expected to be received, while the Hearthstone Venture intangible assets will be amortized on a straight-line basis over an estimated useful life of seven years. The carrying amount and accumulated amortization of the intangible assets as of June 30, 2026 and December 31, 2025 were as follows (in thousands):
Intangible asset amortization expense, as a result of revenue recognition attributable to incentive compensation provisions of the A&R DMA, was $0.5 million and $0.9 million for the three and six months ended June 30, 2026, respectively, and $0.5 million and $1.7 million for the three and six months ended June 30, 2025, respectively. Amortization expense is included in the cost of management services in the accompanying condensed consolidated statements of operations and is included in the Great Park segment. Intangible asset amortization expense for the Hearthstone Venture intangible assets was $0.5 million and $1.0 million for the three and six months ended June 30, 2026, respectively. Amortization expense is included in the cost of management services in the accompanying condensed consolidated statements of operations and is included in the Hearthstone segment.
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