Investments in Unconsolidated Entities (Tables)
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9 Months Ended |
Jul. 31, 2019 |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] |
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Summary of Joint Venture Information [Table Text Block] |
The table below provides information as of July 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 | | 9 | | 37 | Investment in unconsolidated entities | $ | 116,464 |
| | $ | 58,907 |
| | $ | 157,657 |
| | $ | 21,541 |
| | $ | 354,569 |
| Number of unconsolidated entities with funding commitments by the Company | 2 | | 1 | | 1 | | 1 |
| | 5 | Company’s remaining funding commitment to unconsolidated entities | $ | 21,160 |
| | $ | 1,400 |
| | $ | 785 |
| | $ | 9,621 |
| | $ | 32,966 |
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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 July 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 | 3 | | 3 | | 15 | | 21 | Aggregate loan commitments | $ | 100,859 |
| | $ | 218,237 |
| | $ | 1,148,687 |
| | $ | 1,467,783 |
| Amounts borrowed under loan commitments | $ | 91,635 |
| | $ | 196,891 |
| | $ | 936,268 |
| | $ | 1,224,794 |
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Condensed balance sheet |
Condensed Balance Sheets: | | | | | | | | | | July 31, 2019 | | October 31, 2018 | Cash and cash equivalents | $ | 101,034 |
| | $ | 102,462 |
| Inventory | 729,583 |
| | 973,990 |
| Loans receivable, net | 56,954 |
| | 40,065 |
| Rental properties | 1,022,461 |
| | 808,785 |
| Rental properties under development | 377,210 |
| | 437,586 |
| Real estate owned | 12,316 |
| | 14,838 |
| Other assets | 169,746 |
| | 166,029 |
| Total assets | $ | 2,469,304 |
| | $ | 2,543,755 |
| Debt, net of deferred financing costs | $ | 1,217,077 |
| | $ | 1,145,998 |
| Other liabilities | 169,554 |
| | 158,570 |
| Members’ equity | 1,072,233 |
| | 1,235,974 |
| Noncontrolling interest | 10,440 |
| | 3,213 |
| Total liabilities and equity | $ | 2,469,304 |
| | $ | 2,543,755 |
| Company’s net investment in unconsolidated entities (1) | $ | 354,569 |
| | $ | 431,813 |
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| | (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.
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Condensed statements of operations and comprehensive income |
Condensed Statements of Operations: | | | | | | | | | | | | | | | | | | Nine months ended July 31, | | Three months ended July 31, | | 2019 | | 2018 | | 2019 | | 2018 | Revenues | $ | 511,226 |
| | $ | 393,522 |
| | $ | 179,608 |
| | $ | 117,239 |
| Cost of revenues | 443,740 |
| | 303,209 |
| | 154,787 |
| | 93,799 |
| Other expenses | 64,027 |
| | 64,462 |
| | 22,674 |
| | 19,880 |
| Total expenses | 507,767 |
| | 367,671 |
| | 177,461 |
| | 113,679 |
| Gain on disposition of loans and real estate owned | 4,383 |
| | 52,444 |
| | 689 |
| | 25,964 |
| Income from operations | 7,842 |
| | 78,295 |
| | 2,836 |
| | 29,524 |
| Other income | 31,584 |
| | 106,141 |
| | 29,846 |
| | 25,275 |
| Income before income taxes | 39,426 |
| | 184,436 |
| | 32,682 |
| | 54,799 |
| Income tax provision | 596 |
| | 587 |
| | 201 |
| | 238 |
| Net income including earnings from noncontrolling interests | 38,830 |
| | 183,849 |
| | 32,481 |
| | 54,561 |
| Less: income attributable to noncontrolling interest | (9,600 | ) | | (28,017 | ) | | (7,521 | ) | | (16,079 | ) | Net income attributable to controlling interest | $ | 29,230 |
| | $ | 155,832 |
| | $ | 24,960 |
| | $ | 38,482 |
| Company’s equity in earnings of unconsolidated entities (1) | $ | 17,759 |
| | $ | 53,913 |
| | $ | 7,200 |
| | $ | 12,469 |
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(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.
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