XML 27 R10.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Investments, Equity Method and Joint Ventures | 12 Months Ended
--- | ---
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | INVESTMENTS IN UNCONSOLIDATED ENTITIES We participate in a number of joint ventures and other investments with independent third parties. These entities generally focus on homebuilding, land development, and mortgage services to homebuyers. The Company’s investment in these entities is included in investments in unconsolidated entities in the Company’s consolidated balance sheets under the equity method of accounting. A summary of the Company’s investments in unconsolidated entities is as follows (in thousands):
|  | December 31, 2024 |  | December 31, 2023
GBTM Sendera, LLC |  | $ | 21,985 |  |  | $ | 19,866 |
Rainwater Crossing Single-Family, LLC |  | 18,633 |  |  | — |
EJB River Holdings, LLC |  | 12,288 |  |  | 10,867 |
TMGB Magnolia Ridge, LLC |  | 7,006 |  |  | — |
BHome Mortgage, LLC |  | 670 |  |  | 1,255 |
GB Challenger, LLC (1) |  | — |  |  | 52,666 |
Total investment in unconsolidated entities |  | $ | 60,582 |  |  | $ | 84,654 |
(1) The Company sold its 49.9% ownership interest in GB Challenger, LLC (“Challenger”) effective February 1, 2024. GBTM Sendera, LLC In August 2020, the joint venture GBTM Sendera, LLC (“GBTM Sendera”) was formed by GRBK Edgewood, LLC (“GRBK Edgewood”) and TM Sendera, LLC (“TM Sendera”) to acquire and develop a tract of land in Fort Worth, Texas. Each party holds a 50% ownership interest in GBTM Sendera and share equally in the profits and losses of GBTM Sendera, with the exception of certain customary fees. The Company made capital contributions of $2.0 million, $5.0 million, and $3.6 million during the years ended December 31, 2024, 2023, and 2022, respectively. Following our analysis of GBTM Sendera’s operating agreement, the Company determined that GBTM Sendera is not a VIE as the joint venture’s equity at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support from its members. As of December 31, 2024, the carrying amount of GBTM Sendera assets and liabilities were $47.6 million and $6.8 million, respectively. As of December 31, 2024, the Company’s maximum exposure to loss as a result of this joint venture was $22.0 million, representing the Company’s investment in GBTM Sendera. Rainwater Crossing Single-Family, LLC In February 2024, GRBK Edgewood, LLC (“GRBK Edgewood”) established a joint venture (“JV”), Rainwater Crossing Single-Family, LLC (“Rainwater Crossing”), with Rainwater Single Family S-CORP, LLC to develop a tract of land in Celina, Texas. Both parties hold a 50% ownership interest in Rainwater Crossing. The Company evaluated the JV agreements and determined that Rainwater Crossing is a VIE, but the Company is not its primary beneficiary. Specifically, the Company determined that it does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. As of December 31, 2024, the carrying amounts of assets and liabilities of Rainwater Crossing were $35.6 million and $13.9 million, respectively. As of December 31, 2024, the Company’s maximum exposure to loss as a result from its involvement with Rainwater Crossing was approximately $30.6 million, representing its $18.6 million investment and the Company’s remaining commitment to contribute to the joint venture $12.0 million in quarterly payments through March 31, 2029. The Company is also required to fund the remaining development costs related to this project. EJB River Holdings, LLC In December 2018, the joint venture EJB River Holdings, LLC (“EJB”) was formed by TPG to acquire and develop a tract of land in Gwinnett County, Georgia. In May 2019, East Jones Bridge, LLC was admitted as a member, which resulted in TPG having a 50% ownership interest in EJB. Following our analysis of the provisions in the EJB’s operating agreement, the Company determined that EJB is a VIE, but that we are not the primary beneficiary. Specifically, the Company does not direct the activities that most significantly impact the entity’s economic performance as key decisions are subject to the approval of a management committee where both members are equally represented. As of December 31, 2024, the carrying amounts of assets and liabilities of EJB were $25.1 million and $0.5 million, respectively. As of December 31, 2024 the Company’s maximum exposure to loss as a result of its involvement with EJB River Holdings was $12.3 million, representing the Company’s investment in EJB. TMGB Magnolia Ridge, LLC In September 2024, TMGB Magnolia Ridge, LLC (“Magnolia Ridge”) was formed by GRBK Edgewood and TM Magnolia Ridge, LLC (“TM Magnolia Ridge”) with the purpose to acquire and develop a tract of land in Denton County, Texas. Both parties hold a 50% ownership interest in Magnolia Ridge. Per the Magnolia Ridge company agreement, GRBK Edgewood and TM Magnolia Ridge share equally in the profits and losses of Magnolia Ridge, with the exception of certain customary fees. Following the analysis of the above facts and provisions of the Magnolia Ridge company agreement, the Company determined that Magnolia Ridge is not a VIE as the joint venture’s equity at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support from its members. As of December 31, 2024, the carrying amounts of assets and liabilities of Magnolia Ridge were $22.8 million and $8.8 million, respectively. As of December 31, 2024, the Company’s maximum exposure to loss as a result of its involvement with Magnolia Ridge was $29.5 million representing the Company’s investment in Magnolia Ridge of $7.0 million and up to a $22.5 million completion guarantee on the JV’s revolving loan to fund its development activities. BHome Mortgage, LLC As of December 31, 2024, BHome Mortgage, a joint venture the Company established to provide mortgage related services to homebuyers, substantially ceased its operations. The Company owns a 49% equity interest in BHome Mortgage and it expects a de minimis loss upon dissolution of this joint venture. GB Challenger, LLC Effective February 1, 2024, the Company sold its 49.9% ownership interest in Challenger, a homebuilder that constructs townhouses, single family homes, and luxury patio homes in Colorado Springs and Denver, Colorado. The Company received approximately $64.0 million in cash from this sale which included a $10.7 million gain in the sale of this investment. The Company used the proceeds from the transaction for investment in and expansion of opportunities with those builders in which it holds a controlling or one-hundred percent (100%) ownership interest, particularly including the growth and expansion of its Trophy brand in the DFW, Austin and Houston markets. The Company recognized $0.9 million, $10.9 million, and $20.9 million, related to Challenger in equity in income of unconsolidated entities during the years ended December 31, 2024, 2023, and 2022, respectively. A summary of the financial information of the unconsolidated entities that are accounted for by the equity method, as described above, is as follows (in thousands):
|  |  | December 31, 2024 |  | December 31, 2023
Assets: |  |  |  |  |
Cash |  |  | $ | 7,334 |  |  | $ | 23,549 |
Accounts receivable |  |  | 488 |  |  | 4,207 |
Bonds and notes receivable |  |  | 12,038 |  |  | 2,838 |
Loans held for sale, at fair value |  |  | — |  |  | 7,452 |
Inventory |  |  | 111,771 |  |  | 182,550 |
Other assets |  |  | 1,738 |  |  | 6,425 |
Total assets |  |  | $ | 133,369 |  |  | $ | 227,021 |
Liabilities: |  |  |  |  |
Accounts payable |  |  | $ | 6,280 |  |  | $ | 7,151 |
Accrued expenses and other liabilities |  |  | 1,369 |  |  | 10,265 |
Notes payable |  |  | 23,194 |  |  | 49,701 |
Total liabilities |  |  | $ | 30,843 |  |  | $ | 67,117 |
Owners’ equity: |  |  |  |  |
Green Brick |  |  | $ | 58,312 |  |  | $ | 80,968 |
Others |  |  | 44,214 |  |  | 78,936 |
Total owners’ equity |  |  | $ | 102,526 |  |  | $ | 159,904 |
Total liabilities and owners’ equity |  |  | $ | 133,369 |  |  | $ | 227,021 |
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
Revenues | $ | 49,124 |  |  | $ | 270,322 |  |  | $ | 301,818 |
Costs and expenses | 38,875 |  |  | 236,038 |  |  | 250,240 |
Net earnings of unconsolidated entities | $ | 10,249 |  |  | $ | 34,284 |  |  | $ | 51,578 |
Company’s share in net earnings of unconsolidated entities | $ | 5,083 |  |  | $ | 16,742 |  |  | $ | 25,626 |
A summary of the Company’s share in net earnings by unconsolidated entity is as follows (in thousands):
|  | Years Ended December 31,
|  | 2024 |  | 2023 |  | 2022
GB Challenger, LLC |  | $ | 929 |  |  | $ | 10,921 |  |  | $ | 20,921 |
EJB River Holdings, LLC |  | 2,421 |  |  | 2,812 |  |  | 2,424 |
BHome Mortgage, LLC |  | 1,733 |  |  | 3,009 |  |  | 1,548 |
Green Brick Mortgage, LLC |  | — |  |  | — |  |  | 733 |
Total net earnings from unconsolidated entities |  | $ | 5,083 |  |  | $ | 16,742 |  |  | $ | 25,626 |
During the years ended December 31, 2024, 2023, and 2022, the Company did not identify indicators of impairment for its investments in unconsolidated entities.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration