The Operating Company owned 37.5% of the Great Park Venture’s Percentage Interests as of September 30, 2025. During the nine months ended September 30, 2025 and 2024, the Great Park Venture made aggregate distributions of $517.3 million and $229.9 million, respectively, to holders of Percentage Interests, of which the Company received $194.0 million and $86.2 million, respectively, for its 37.5% Percentage Interest.

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 land at 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 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 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 nine months ended September 30, 2025, the Great Park Venture recognized no land sale revenues to related parties of the Company and $630.7 million in land sale revenues to third parties, of which $224.9 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.

During the nine months ended September 30, 2024, the Great Park Venture recognized $19.8 million in land sale revenues to related parties of the Company and $273.7 million in land sale revenues to third parties.

The following table summarizes the statements of operations of the Great Park Venture for the nine months ended September 30, 2025 and 2024 (in thousands):


	Nine Months Ended September 30,
	2025		2024
Land sale and related party land sale revenues	$	630,717	$	293,593

Cost of land sales	(151,121)		(67,062)

Other costs and expenses	(23,305)		(95,068)
Net income of Great Park Venture	$	456,291	$	131,463
The Company’s share of net income	$	171,109	$	49,299
Basis difference amortization, net	(14,015)		(4,081)

Equity in earnings from Great Park Venture	$	157,094	$	45,218

The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025		December 31, 2024
Inventories	$	187,606	$	274,738
Cash and cash equivalents	47,812		118,256
Contract assets, receivables and other assets, net	166,566		169,604
Total assets	$	401,984	$	562,598
Accounts payable and other liabilities	$	182,681	$	282,277


Capital (Percentage Interest)	219,303		280,321
Total liabilities and capital	$	401,984	$	562,598
The Company’s share of capital in Great Park Venture	$	82,238	$	105,121
Unamortized basis difference	32,511		46,526
The Company’s investment in the Great Park Venture	$	114,749	$	151,647

The Company owned a 75% interest in the Gateway Commercial Venture as of September 30, 2025. 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.

The Company and a subsidiary of Lennar separately leased portions of the building that were under the ownership of the Gateway Commercial Venture, and during the nine months ended September 30, 2024, the Gateway Commercial Venture recognized $7.0 million in rental revenues from those leasing arrangements.

The following table summarizes the statements of operations of the Gateway Commercial Venture for the nine months ended September 30, 2025 and 2024 (in thousands):


	Nine Months Ended September 30,
	2025		2024
Rental revenues	$	—	$	7,002
Rental operating and other expenses	(291)		(2,735)
Depreciation and amortization	—		(3,011)

Interest income	1,661		—
Interest expense	—		(2,078)
Net income (loss) of Gateway Commercial Venture	$	1,370	$	(822)
Equity in earnings (loss) from Gateway Commercial Venture	$	1,028	$	(617)

The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of September 30, 2025 and December 31, 2024 (in thousands):


	September 30, 2025		December 31, 2024

Cash	$	1,622	$	257
Note receivable and other assets	43,681		43,667
Total assets	$	45,303	$	43,924

Other liabilities	$	9	$	—
Members’ capital	45,294		43,924
Total liabilities and capital	$	45,303	$	43,924
The Company’s investment in the Gateway Commercial Venture	$	33,971	$	32,943

The Hearthstone Venture has interests in individual funds (the “Hearthstone Funds”) that primarily invest in land acquisition and development opportunities through land option programs with homebuilders. The Hearthstone Funds make investments in separate project limited partnerships that acquire land to be developed and contract with preapproved homebuilders through option and development agreements to construct improvements and purchase lots on agreed-upon terms and conditions. The Hearthstone Venture’s interest in an individual fund is generally between 1% and 3%. The Hearthstone Venture does not have a controlling financial interest in any of the Hearthstone Funds, however, the Hearthstone Venture has the ability to significantly influence the operating and financial policies of the Hearthstone Funds, and therefore it accounts for its investments in the funds using the equity method.

At September 30, 2025, the Hearthstone Venture’s investments in the Hearthstone Funds were $19.7 million, and it recognized $0.2 million in equity in earnings for the nine months ended September 30, 2025.

Several of the Hearthstone Funds utilize financing arrangements to partially fund the acquisition of land. The debt is non-recourse to the Hearthstone Venture other than in the case of customary “bad act” exceptions or bankruptcy or insolvency events.