Investments in Unconsolidated Entities (Tables)

9 Months Ended

Jul. 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 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

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

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

 

(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:

	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

(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.