Investments in Unconsolidated Entities

6 Months Ended

Jun. 30, 2026

Equity Method Investments and Joint Ventures [Abstract]

As of June 30, 2026, we held equity investments in seventeen active homebuilding partnerships or limited liability companies. Our participation in these entities may be as a developer, a builder, or an investment partner. Our ownership percentage varies from 8% to 50%, depending on the investment, with no controlling interest held in any of these homebuilding investments. In addition, we have one consolidated financial services joint venture in which we own an 80% interest. This joint venture is included in our consolidated financial statements, and the noncontrolling interest is presented separately.

Aggregated assets, liabilities and equity of the entities we account for as equity-method investments are as follows (in thousands):


	June 30, 2026		December 31, 2025
Assets
Cash	$	28,308	$	34,867
Receivables	1,595		446
Real estate inventories	890,735		695,084
Other assets	269		615
Total assets	$	920,907	$	731,012
Liabilities and equity
Debt obligations and other liabilities	$	291,548	$	217,956
Company’s equity	245,695		183,075
Outside interests’ equity	383,664		329,981
Total liabilities and equity	$	920,907	$	731,012

Guarantees

The unconsolidated entities in which we hold an equity investment generally finance their activities with a combination of equity and secured project debt financing. We have, and in some cases our joint venture partner has, guaranteed portions of the loan obligations for some of the homebuilding partnerships or limited liability companies, which may include any or all of the following: (i) project completion; (ii) remargin obligations; and (iii) environmental indemnities.

In circumstances in which we have entered into joint and several guarantees with our joint venture partner, we generally seek to implement a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed-upon share of the guaranteed obligations. In the event our joint venture partner does not have adequate financial resources to meet its obligations under such a reimbursement agreement, or otherwise fails to satisfy its obligations thereunder, we may be responsible for more than our proportionate share of any obligations under such guarantees.

As of June 30, 2026 and December 31, 2025, we have not recorded any liabilities for these obligations and guarantees, as the fair value of the related joint venture real estate assets exceeded the threshold where a remargin payment would be required and no other obligations under the guarantees existed as of such time. At June 30, 2026 and December 31, 2025, aggregate outstanding debt for unconsolidated entities, included in the “Debt obligations and other liabilities” line of the aggregated assets, liabilities and equity shown in the table above, was $252.3 million and $177.6 million, respectively.

Aggregated results of operations from unconsolidated entities (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales	$	20,790	$	52,629	$	40,169	$	70,539
Other operating expense	(20,967)		(54,050)		(40,425)		(67,931)
Other income (expense), net	(7)		(5)		(216)		—
Net (loss) income	$	(184)	$	(1,426)	$	(472)	$	2,608
Company’s equity in (loss) income of unconsolidated entities	$	(24)	$	471	$	(112)	$	966

The aggregate results of operations from unconsolidated entities include related party transactions with the Company. When we purchase land from a joint venture in which we are a partner, such transactions are reflected as net sales in the joint ventures’ operating results, with any profit eliminated in the consolidated financial statements. Additionally, when we act as the general partner or managing member, we earn an immaterial, market-based administrative fee for services provided, which is reflected as other operating expense in the joint ventures’ operating results, and as other income (expense) on our consolidated statements of operations.