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Investments in Unconsolidated Entities (Tables)

12 Months Ended

Oct. 31, 2022

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, 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.

The table below provides information as of October 31, 2021, 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	12		2		32		4		50
Investment in unconsolidated entities (1)	$	243,767	$	12,944	$	316,580	$	25,810	$	599,101
Number of unconsolidated entities with funding commitments by the Company	9		—		9		1		19
Company’s remaining funding commitment to unconsolidated entities (2)	$	173,786	$	—	$	50,800	$	23,424	$	248,010

(1) Our total investment includes $105.2 million related to 12 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $290.6 million as of October 31, 2021. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 20% to 50%.

(2) Our remaining funding commitment includes approximately $184.5 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, 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

The table below provides information at October 31, 2021, regarding the debt financing obtained by category ($ amounts in thousands):


	Land Development Joint Ventures		Rental Property Joint Ventures		Total
Number of joint ventures with debt financing	7		27		34
Aggregate loan commitments	$	422,446	$	2,351,156	$	2,773,602
Amounts borrowed under commitments	$	328,173	$	1,342,918	$	1,671,091

New joint venture formations in fiscal 2020

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

In the fourth quarter of fiscal 2022, we entered into two joint ventures with an unrelated party to develop two luxury condominium communities in the New York City metropolitan area. Prior to the formation of these ventures, we capitalized approximately $106.5 million of land and land development costs. Our partner acquired a 55% interest in these ventures for approximately $61.0 million, which equaled our pro-rata cost basis. We received cash of $61.2 million as a result of these formations, which included a combination of partner and loan proceeds, resulting in our initial investment in these ventures of $45.5 million. Concurrent with their formation, the joint ventures entered into construction loan agreements aggregating $219.7 million to finance the remaining development of these projects, of which $17.6 million was borrowed at the closing of the ventures.

The table below provides information on joint ventures entered into during fiscal 2021 ($ amounts in thousands):


	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	6		11
Investment balance at October 31, 2021	$	112,400	$	112,900

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, 2022		October 31, 2021
Loan commitments in the aggregate	$	2,858,800	$	2,195,200
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)	$	597,800	$	418,800
Debt obligations borrowed in the aggregate	$	1,110,900	$	1,092,700
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	390,500	$	222,000
Estimated fair value of guarantees provided by us related to debt and other obligations	$	16,900	$	11,000
Terms of guarantees	1 month - 3.7 years		4 months - 4.0 years

(1) At October 31, 2022 and 2021, our maximum estimated exposure under repayment and carry cost guarantees includes approximately $95.0 million and $106.1 million, respectively, related to our unconsolidated Joint Venture VIEs.

Consolidated Joint Venture Related Variable Interest Entities

($ amounts in thousands):


	Balance Sheet Classification	October 31, 2022		October 31, 2021
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	$	81,300	$	90,800
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	9,700	$	39,400

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, 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


	October 31, 2021
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Cash and cash equivalents	$	39,191	$	28,137	$	85,499	$	755	$	153,582
Inventory	820,916		98,981		—		45,065		964,962
Loan receivables, net	—		—		—		86,727		86,727
Rental properties	—		—		1,496,355		—		1,496,355
Rental properties under development	—		—		697,659		—		697,659

Other assets	144,320		10,157		71,917		1,185		227,579
Total assets	$	1,004,427	$	137,275	$	2,351,430	$	133,732	$	3,626,864
Debt, net of deferred financing costs	$	325,973	$	—	$	1,351,646	$	—	$	1,677,619
Other liabilities	65,033		11,725		153,338		18,449		248,545
Members’ equity	613,421		125,550		846,446		115,283		1,700,700

Total liabilities and equity	$	1,004,427	$	137,275	$	2,351,430	$	133,732	$	3,626,864
Company’s net investment in unconsolidated entities (1)	$	243,767	$	12,944	$	316,580	$	25,810	$	599,101

(1) Our underlying equity in the net assets of the unconsolidated entities was (less)/more than our net investment in unconsolidated entities by $(18.5) million and $16.5 million as of October 31, 2022 and 2021, respectively, and these differences are primarily a result of other than temporary impairments related to our investments in unconsolidated entities; interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; unrealized gains on our retained joint venture interests; gains recognized from the sale of our ownership interests; and distributions from entities in excess of the carrying amount of our net investment.

Condensed statements of operations aggregate by type of business

Condensed Combined Statements of Operations and Comprehensive Income:


	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	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 (2)	$	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	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 (2)	$	18,155	$	(241)	$	53,792	$	2,329	$	74,035


	For the year ended October 31, 2020
	Land Develop- ment Joint Ventures		Home Building Joint Ventures		Rental Property Joint Ventures		Gibraltar Joint Ventures		Total
Revenues	$	87,174	$	139,587	$	111,122	$	26,781	$	364,664
Cost of revenues	64,810		124,899		37,770		15,762		243,241
Other expenses	2,948		15,731		117,419		1,505		137,603
Total expenses	67,758		140,630		155,189		17,267		380,844
Gain on disposition of loans and REO	—		—		—		1,053		1,053
Income (loss) from operations	19,416		(1,043)		(44,067)		10,567		(15,127)
Other income (loss)	3,061		536		(448)				3,149
Income (loss) before income taxes	22,477		(507)		(44,515)		10,567		(11,978)
Income tax provision (benefit)	188		(254)		—		—		(66)
Net income (loss) including earnings from noncontrolling interests	22,289		(253)		(44,515)		10,567		(11,912)
Plus: loss attributable to noncontrolling interest	—		—		—		48		48
Net income (loss) attributable to controlling interest	$	22,289	$	(253)	$	(44,515)	$	10,615	$	(11,864)


Company’s equity (deficit) in earnings of unconsolidated entities (2)	$	11,412	$	(3,424)	$	(9,389)	$	2,349	$	948

(2) Differences between our equity in earnings of unconsolidated entities and 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; other than temporary impairments related to our investments in unconsolidated entities; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gained 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.