Investments in Unconsolidated Entities (Tables)

3 Months Ended

Jan. 31, 2019

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 January 31, 2019, 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	7		4		17		7		35
Investment in unconsolidated entities	$	154,633	$	63,075	$	174,627	$	17,039	$	409,374
Number of unconsolidated entities with funding commitments by the Company	3		1		1		1		6
Company’s remaining funding commitment to unconsolidated entities	$	15,869	$	1,400	$	1,150	$	9,621	$	28,040

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 January 31, 2019, 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	4		3		16		23
Aggregate loan commitments	$	97,132	$	381,116	$	1,144,944	$	1,623,192
Amounts borrowed under loan commitments	$	78,487	$	309,556	$	819,672	$	1,207,715

Condensed balance sheet

Condensed Balance Sheets:

	January 31, 2019		October 31, 2018
Cash and cash equivalents	$	102,587	$	102,462
Inventory	892,412		973,990
Loans receivable, net	36,778		40,065
Rental properties	879,352		808,785
Rental properties under development	485,442		437,586
Real estate owned	14,857		14,838
Other assets	166,650		166,029
Total assets	$	2,578,078	$	2,543,755
Debt, net of deferred financing costs	$	1,201,125	$	1,145,998
Other liabilities	184,267		158,570
Members’ equity	1,187,758		1,235,974
Noncontrolling interest	4,928		3,213
Total liabilities and equity	$	2,578,078	$	2,543,755
Company’s net investment in unconsolidated entities (1)	$	409,374	$	431,813

 

(1)

Differences between our net investment in unconsolidated entities and our underlying equity in the net assets of the entities are primarily a result of 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 and comprehensive income

Condensed Statements of Operations:

	Three months ended January 31,
	2019			2018
Revenues	$	153,230		$	193,620
Cost of revenues	131,755			148,750
Other expenses	18,475			24,286
Total expenses	150,230			173,036
Gain on disposition of loans and real estate owned	3,694			14,671
Income from operations	6,694			35,255
Other income	647			79,363
Income before income taxes	7,341			114,618
Income tax provision	265			198
Net income including earnings from noncontrolling interests	7,076			114,420
Less: income attributable to noncontrolling interest	(2,109		)	(6,082		)
Net income attributable to controlling interest	$	4,967		$	108,338
Company’s equity in earnings of unconsolidated entities (1)	$	6,140		$	38,880

(1)

Differences between our equity in earnings of unconsolidated entities and the underlying net income of the entities are primarily a result of a basis difference of an acquired joint venture interest; distributions from entities in excess of the carrying amount of our net investment; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.