Investments in Unconsolidated Entities (Tables)

6 Months Ended

Apr. 30, 2021

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 April 30, 2021, 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	13		3		28		4		48
Investment in unconsolidated entities	$	215,465	$	24,326	$	271,317	$	22,487	$	533,595
Number of unconsolidated entities with funding commitments by the Company	6		—		8		1		15
Company’s remaining funding commitment to unconsolidated entities	$	31,126	$	—	$	29,608	$	27,543	$	88,277

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 April 30, 2021, 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	6		1		25		32
Aggregate loan commitments	$	326,753	$	3,211	$	2,069,244	$	2,399,208
Amounts borrowed under loan commitments	$	253,808	$	3,211	$	1,391,948	$	1,648,967

New joint venture formations

The table below provides information on joint ventures entered into during the six-months ended April 30, 2021 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	4		3
Investment balance at April 30, 2021	$	86,200	$	43,700

The table below provides information on joint ventures entered into during the six-months ended April 30, 2020 ($ amounts in thousands):

	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	—		3
Investment balance at April 30, 2020	$	—	$	31,800

Summary of Unconsolidated Entities Debt Obligations, Loan Commitments and Guarantees

Information with respect to certain of the Company’s unconsolidated entities’ outstanding debt obligations, loan commitments and our guarantees thereon are as follows ($ amounts in thousands):

	April 30, 2021
Loan commitments in the aggregate	$	1,888,600
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed	$	352,900
Debt obligations borrowed in the aggregate	$	1,138,400
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	259,700
Estimated fair value of guarantees provided by us related to debt and other obligations	$	9,200
Terms of guarantees	4 months - 3.6 years

Condensed balance sheet

Condensed Balance Sheets:

	April 30, 2021		October 31, 2020
Cash and cash equivalents	$	107,721	$	109,478
Inventory	736,175		511,000
Loans receivable, net	73,452		78,576
Rental properties	1,483,363		1,244,911
Rental properties under development	688,942		666,386
Real estate owned	6,438		6,752
Other assets	195,618		169,368
Total assets	$	3,291,709	$	2,786,471
Debt, net of deferred financing costs	$	1,644,556	$	1,368,065
Other liabilities	207,177		186,817
Members’ equity	1,439,976		1,231,173
Noncontrolling interest	—		416
Total liabilities and equity	$	3,291,709	$	2,786,471
Company’s net investment in unconsolidated entities (1)	$	533,595	$	430,701

(1)    Our underlying equity in the net assets of the entities exceeded our net investment in unconsolidated entities by $16.4 million and $29.4 million as of April 30, 2021 and October 31, 2020, respectively, and these differences are primarily a result of other than temporary 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 April 30,				Six months ended April 30,
	2021		2020		2021		2020
Revenues	$	86,422	$	79,112	$	178,952	$	212,282
Cost of revenues (3)	60,136		46,890		156,859		140,361
Other expenses (3)	35,081		35,217		70,470		78,170
Total expenses	95,217		82,107		227,329		218,531
Gain on disposition of loans and real estate owned	(209)		—		(209)		—
Loss from operations	(9,004)		(2,995)		(48,586)		(6,249)
Other income (loss)	34,385		(84)		35,332		529
Income (loss) before income taxes	25,381		(3,079)		(13,254)		(5,720)
Income tax benefit	(152)		(287)		(1,659)		(147)
Net income (loss) including earnings from noncontrolling interests	25,533		(2,792)		(11,595)		(5,573)
Less: loss attributable to noncontrolling interest	—		—		(174)		—
Net income (loss) attributable to controlling interest	$	25,533	$	(2,792)	$	(11,769)	$	(5,573)
Company’s equity in earnings (losses) of unconsolidated entities (2)	$	10,483	$	(4,271)	$	11,677	$	7,870

(2)    Differences between our equity in earnings of unconsolidated entities and the underlying net income (loss) of the entities are primarily a result of distributions from entities in excess of the carrying amount of our investment; other than temporary impairments related to our investments in unconsolidated entities; recoveries of previously incurred charges; unrealized gains on our retained joint venture interests; gains recognized from the sale of our investment to our joint venture partner; and our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired.

(3)    Effective October 31, 2020, we reclassified sales commissions paid to third-party brokers from home sales cost of revenues to selling, general and administrative expense. Prior year periods have been reclassified to conform to the 2021 presentation.

Consolidated Joint Venture Related Variable Interest Entities

The table below provide information as of April 30, 2021 and October 31, 2020, regarding our consolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	Balance Sheet Classification	April 30, 2021		October 31, 2020
Number of Joint Venture VIEs that the Company is the PB and consolidates		5		5
Carrying value of consolidated VIEs assets	Receivables prepaid expenses, and other assets	$	114,000	$	163,000
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	41,700	$	46,200

Our ownership interest in the above consolidated Joint Venture VIEs ranges from 50% to 98%.

Unconsolidated Joint Venture Related Variable Interest Entities

The table below provide information as of April 30, 2021 and October 31, 2020, regarding our unconsolidated joint venture-related variable interests in VIEs ($ amounts in thousands):

	April 30, 2021		October 31, 2020
Number of Joint Venture VIEs that the Company is not the Primary Beneficiary (“PB”)	10		12
Investment balance in unconsolidated Joint Venture VIEs included in Investments in unconsolidated entities in our Consolidated Balance Sheets	$	85,700	$	63,100
Our maximum exposure to losses related to loan guarantees and additional commitments provided to unconsolidated Joint Venture VIEs	$	282,400	$	122,100

Our ownership interest in the above unconsolidated Joint Venture VIEs ranges from 20% to 50%.