The Great Park Venture previously had two classes of membership interests—“Percentage Interests” and “Legacy Interests.” The Operating Company owned 37.5% of the Great Park Venture’s Percentage Interests as of December 31, 2024. Legacy Interest holders were entitled to receive priority distributions in an aggregate amount equal to $476.0 million, which were satisfied as of December 31, 2021, and up to an additional $89.0 million from participation in subsequent distributions of cash depending on the performance of the Great Park Venture.

During the year ended December 31, 2024, the Great Park Venture made aggregate distributions of $18.1 million to holders of Legacy Interests and $485.1 million to holders of Percentage Interests. The Company received $181.9 million for its 37.5% Percentage Interest. During the year ended December 31, 2023, the Great Park Venture made aggregate distributions of $48.2 million to holders of Legacy Interests and $411.2 million to holders of Percentage Interests. The Company received $154.2 million for its 37.5% Percentage Interest. With the distributions to the holders of Legacy Interests during the year ended December 31, 2024, the Great Park Venture fully satisfied the $89.0 million maximum participating Legacy Interest distribution rights, as a result of which, the Legacy Interests are no longer deemed to be outstanding.

The Great Park Venture is the owner of Great Park Neighborhoods, a mixed-use planned community located in Orange County, California. The Company, through the A&R DMA, as amended, manages the planning, development and sale of the Great Park Neighborhoods and supervises the day-to-day affairs of the Great Park Venture. The Great Park Venture is governed by an executive committee of representatives appointed by only the holders of Percentage Interests. The Company serves as the administrative member but does not control the actions of the executive committee. The Company accounts for its investment in the Great Park Venture using the equity method of accounting.

The carrying value of the Company’s investment in the Great Park Venture, acquired through a series of acquisitions in May 2016 (the “Formation Transactions”), is higher than the Company’s underlying share of equity in the carrying value of net assets of the Great Park Venture resulting in a basis difference. The Company’s earnings or losses from the equity method investment are adjusted by amortization and accretion of the basis differences as the assets (mainly inventory) and liabilities that gave rise to the basis difference are sold, settled or amortized.

During the year ended December 31, 2023, the Great Park Venture recognized $16.2 million in land sale revenues to related parties of the Company and $538.6 million in land sale revenues to third parties, of which $357.8 million relates to homesites sold to an unaffiliated land banking entity whereby Lennar retained the option to acquire these homesites in the future from the land bank entity.

The following table summarizes the statements of operations of the Great Park Venture for the years ended December 31, 2024, 2023 and 2022 (in thousands):


	2024		2023		2022
Land sale and related party land sale revenues	$	612,806	$	554,825	$	283,402
Home sale revenues	—		—		40,475
Cost of land sales	(144,876)		(237,148)		(155,692)
Cost of home sales	—		(161)		(29,692)
Other costs and expenses	(118,746)		(66,906)		(69,539)
Net income of Great Park Venture	$	349,184	$	250,610	$	68,954
The Company’s share of net income	$	130,944	$	93,979	$	25,858
Basis difference amortization, net	(11,157)		(15,032)		(5,414)

Equity in earnings from Great Park Venture	$	119,787	$	78,947	$	20,444

The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of December 31, 2024 and 2023 (in thousands):


	2024		2023
Inventories	$	274,738	$	391,352
Cash and cash equivalents	118,256		61,054
Contract assets and receivables, net	169,604		166,793
Total assets	$	562,598	$	619,199
Accounts payable and other liabilities	$	282,277	$	184,847

Redeemable Legacy Interests	—		18,075
Capital (Percentage Interest)	280,321		416,277
Total liabilities and capital	$	562,598	$	619,199
The Company’s share of capital in Great Park Venture	$	105,121	$	156,105
Unamortized basis difference	46,526		57,681
The Company’s investment in the Great Park Venture	$	151,647	$	213,786

At each reporting period, and when events and circumstances dictate, the Company evaluates its equity method investment in the Great Park Venture for impairment. This evaluation focuses on the recoverability of the carrying value based upon the discounted value of distributions the Company expects to receive from the Great Park Venture. This evaluation is performed at the investment level and is separate and apart from impairment evaluations on long-lived assets, such as the Company’s consolidated inventory balances, that focus on recoverability with undiscounted cash flows. The Company evaluates the investment as a whole and does not evaluate the underlying assets of the Great Park Venture for impairment. If the Great Park Venture records an impairment charge against its assets, the Company will recognize its share of the loss, adjusted for basis differences. During the years ended December 31, 2024, 2023 and 2022, the Great Park Venture did not recognize any impairment losses on its long-lived assets.

The Company owned a 75% interest in the Gateway Commercial Venture as of December 31, 2024. The Gateway Commercial Venture is governed by an executive committee in which the Company is entitled to appoint two individuals. One of the other members of the Gateway Commercial Venture is also entitled to appoint two individuals to the executive committee. The unanimous approval of the executive committee is required for certain matters, which limits the Company’s ability to control the Gateway Commercial Venture, however, the Company is able to exercise significant influence and therefore accounts for its investment in the Gateway Commercial Venture using the equity method. The Company is the manager of the Gateway Commercial Venture, with responsibility to manage and administer its day-to-day affairs.

The Five Point Gateway Campus (the “Five Point Gateway Campus”) is a 73-acre office, medical, research and development campus located within the Great Park Neighborhoods consisting of four buildings totaling approximately one million square feet. During the year ended December 31, 2024, the Gateway Commercial Venture sold its remaining interests in the Five Point Gateway Campus, which included an approximately 189,000 square foot commercial office building and approximately 50 acres of commercial land on which up to an additional 189,000 square feet of commercial space can be developed, for a purchase price of $88.5 million. The purchase price consisted of $45.0 million in cash paid at closing and a $43.5 million note that matures in December 2026. After retiring the Gateway Commercial Venture’s outstanding debt, the Gateway Commercial Venture made distributions to its members, of which the Company received $17.2 million.

The Company and a subsidiary of Lennar Corporation separately leased portions of the building that was under the ownership of the Gateway Commercial Venture, and during the years ended December 31, 2024, 2023 and 2022, the Gateway Commercial Venture recognized $8.7 million, $8.5 million and $8.4 million, respectively, in rental revenues from those leasing arrangements.

The following table summarizes the statements of operations of the Gateway Commercial Venture for the years ended December 31, 2024, 2023 and 2022 (in thousands):


	2024		2023		2022
Rental revenues	$	8,747	$	8,482	$	8,395
Rental operating and other expenses	(3,509)		(5,821)		(3,063)
Depreciation and amortization	(4,011)		(4,015)		(3,960)
Gain on sale of assets, net	17,826		—		—
Interest expense	(2,590)		(2,531)		(1,541)
Net income (loss) of Gateway Commercial Venture	$	16,463	$	(3,885)	$	(169)
Equity in earnings (loss) from Gateway Commercial Venture	$	12,347	$	(2,914)	$	(127)

The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of December 31, 2024 and 2023 (in thousands):


	2024		2023
Real estate and related intangible assets, net	$	—	$	76,719
Cash and restricted cash	257		5,574
Note receivable and other assets	43,667		3,554
Total assets	$	43,924	$	85,847
Notes payable, net	$	—	$	28,850
Other liabilities, net	—		6,623
Members’ capital	43,924		50,374
Total liabilities and capital	$	43,924	$	85,847
The Company’s investment in the Gateway Commercial Venture	$	32,943	$	37,781

As of December 31, 2024, the Company owned a 10% interest in the Valencia Landbank Venture, an entity organized in December 2020 for the purpose of taking assignment from homebuilders of purchase and sale agreements for the purchase of residential lots within the Company’s Valencia community. The Valencia Landbank Venture concurrently enters into option and development agreements with homebuilders pursuant to which the homebuilders retain the option to purchase the land to construct and sell homes. The Company does not have a controlling financial interest in the Valencia Landbank Venture, however, the Company has the ability to significantly influence the Valencia Landbank Venture’s operating and financial policies, and most major decisions require the Company’s approval in addition to the approval of the Valencia Landbank Venture’s other unaffiliated member, and therefore the Company accounts for its investment in the Valencia Landbank Venture using the equity method.

When the Company sells land to the Valencia Landbank Venture, it eliminates its pro-rata share of the intra-entity profits generated from the sale through earnings (loss) from unconsolidated entities until the land is sold by the Valencia Landbank Venture to third-party homebuilders. At December 31, 2024 and 2023, the Company’s investment in the Valencia Landbank Venture was $0.7 million and $1.2 million, respectively. During the years ended December 31, 2024, 2023 and 2022, the Company recognized equity in earnings of $0.5 million, $0.6 million and $1.2 million, respectively, from the Valencia Landbank Venture.