We have investments in various unconsolidated entities and our ownership interest in these investments ranges from 5.0% to 50%. These entities are structured as joint ventures and either: (i) develop land for the joint venture participants and for sale to outside builders (“Land Development Joint Ventures”); (ii) develop for-sale homes (“Home Building Joint Ventures”); (iii) develop luxury for-rent residential apartments and single family homes, commercial space, and a hotel (“Rental Property Joint Ventures”); or (iv) provide financing and land banking to residential builders and developers for the acquisition and development of land and home sites (“Gibraltar Joint Ventures”).

The table below provides information as of April 30, 2024, 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	15		2		42		2		61
Investment in unconsolidated entities (1)	$	364,737	$	61,669	$	564,811	$	11,241	$	1,002,458
Number of unconsolidated entities with funding commitments by the Company	6		—		21		1		28
Company’s remaining funding commitment to unconsolidated entities (2)	$	160,488	$	—	$	150,363	$	8,508	$	319,359

(1) Our total investment includes $147.1 million related to 9 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $373.2 million as of April 30, 2024, inclusive of our investment in these joint ventures. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 25% to 50%.

The table below provides information as of October 31, 2023, 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	16		2		43		3		64
Investment in unconsolidated entities (1)	$	351,154	$	65,285	$	531,823	$	10,779	$	959,041
Number of unconsolidated entities with funding commitments by the Company	9		—		19		1		29
Company’s remaining funding commitment to unconsolidated entities (2)	$	204,438	$	—	$	184,266	$	12,066	$	400,770

(1) Our total investment includes $121.6 million related to 11 unconsolidated joint venture-related variable interests in VIEs and our maximum exposure to losses related to these VIEs is approximately $329.3 million as of October 31, 2023, inclusive of our investment in joint ventures. Our ownership interest in such unconsolidated Joint Venture VIEs ranges from 25% to 50%.

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, 2024, 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	10		2		39		51
Aggregate loan commitments	$	587,611	$	219,650	$	3,607,368	$	4,414,629
Amounts borrowed under loan commitments	$	439,606	$	183,868	$	2,450,959	$	3,074,433

The table below provides information at October 31, 2023, 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	12		2		42		56
Aggregate loan commitments	$	610,758	$	219,650	$	3,731,847	$	4,562,255
Amounts borrowed under loan commitments	$	445,506	$	135,723	$	2,152,872	$	2,734,101

There were no new joint ventures entered into during the six-months ended April 30, 2024. The table below provides information on joint ventures entered into during the six-months ended April 30, 2023 ($ amounts in thousands):


	Land Development Joint Ventures		Rental Property Joint Ventures
Number of unconsolidated joint ventures entered into during the period	1		2
Investment balance at April 30, 2023	$	11,755	4,795

From time to time, certain of our land development and rental property joint ventures sell assets to unrelated parties or to our joint venture partners. In April 2024, one of our Rental Property Joint Ventures sold its assets and we recognized $21.0 million in “Income (loss) from unconsolidated entities” on our Condensed Consolidated Statements of Operations and Comprehensive Income in the three-month and six-month periods ended April 30, 2024. None of our Rental Property Joint Ventures sold assets in the three-month or six-month periods ended April 30, 2023.

the six-month periods ended April 30, 2024 and 2023, we purchased land from unconsolidated entities, principally related to our acquisition of lots from our Land Development Joint Ventures, totaling $61.9 million and $69.1 million, respectively. Our share of income from the lots we acquired was insignificant in each period.

In the three-month and six-month periods ended April 30, 2023, we sold land to unconsolidated entities, which principally involved land sales to our Rental Property Joint Ventures, for $8.2 million. This amount is included in “Land sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income and are generally sold at or near our land basis. No similar land sales to unconsolidated entities occurred in the three-month or six-month periods ended April 30, 2024.

The unconsolidated entities in which we have investments generally finance their activities with a combination of partner equity and debt financing. In some instances, we have guaranteed portions of the debt of unconsolidated entities. These guarantees may include any or all of the following: (i) project completion guarantees, including any cost overruns; (ii) repayment guarantees, generally covering a percentage of the outstanding loan; (iii) carry cost guarantees, which cover costs such as interest, real estate taxes, and insurance; (iv) an environmental indemnity provided to the lender that holds the lender harmless from and against losses arising from the discharge of hazardous materials from the property and non-compliance with applicable environmental laws; and (v) indemnification of the lender from “bad boy acts” of the unconsolidated entity or its partners.

In some instances, we and our joint venture partner have provided joint and several guarantees in connection with loans to unconsolidated entities. In these situations, we generally seek to implement a reimbursement agreement with our partner that provides that neither party is responsible for more than its proportionate share or agreed upon share of the guarantee; however, we are not always successful. In addition, if the joint venture partner does not have adequate financial resources to meet its obligations under such a reimbursement agreement, we may be liable for more than our proportionate share.

We believe that, as of April 30, 2024, in the event we become legally obligated to perform under a guarantee of an obligation of an unconsolidated entity due to a triggering event, the collateral in such entity should be sufficient to repay a significant portion of the obligation. If it is not, we and our partners would need to contribute additional capital to the venture.

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, 2024		October 31, 2023
Loan commitments in the aggregate	$	3,221,000	$	3,341,700
Our maximum estimated exposure under repayment and carry cost guarantees if the full amount of the debt obligations were borrowed (1)	$	694,800	$	688,000

Debt obligations borrowed in the aggregate	$	1,998,900	$	1,643,600
Our maximum estimated exposure under repayment and carry cost guarantees of the debt obligations borrowed	$	590,600	$	544,100

Estimated fair value of guarantees provided by us related to debt and other obligations	$	18,900	$	19,500
Terms of guarantees	1 month - 3.5 years		1 month - 4.0 years

The maximum exposure estimates presented above do not take into account any recoveries from the underlying collateral or any reimbursement from our partners, nor do they include any potential exposures related to project completion guarantees or the indemnities noted above, which are not estimable. We have not made payments under any of the outstanding guarantees, nor have we been called upon to do so.


	Balance Sheet Classification	April 30, 2024		October 31, 2023
Number of Joint Venture VIEs that the Company is the primary beneficiary and consolidates		5		5
Carrying value of consolidated VIEs assets	Receivables, prepaid expenses and other assets and Investments in unconsolidated entities	$	98,200	$	89,600
Our partners’ interests in consolidated VIEs	Noncontrolling interest	$	10,200	$	10,200

As shown above, we are the primary beneficiary of certain VIEs due to our controlling financial interest in such ventures as we have the power to direct the activities that most significantly impact the joint ventures’ performance and the obligation to absorb expected losses or receive benefits from the joint ventures. The assets of these VIEs can only be used to settle the obligations of the VIEs. In addition, in certain of the joint ventures, in the event additional contributions are required to be funded to the joint ventures prior to the admission of any additional investor at a future date, we will fund 100% of such contributions, including our partner’s pro rata share, which we expect would be funded through an interest-bearing loan. For other VIEs, we are not the primary beneficiary because the power to direct the activities of such VIEs that most significantly impact their performance was either shared by us and such VIE’s other partners or such activities were controlled by our partner. For VIEs where the power to direct significant activities is shared, business plans, budgets, and other major decisions are required to be unanimously approved by all partners. Management and other fees earned by us are nominal and believed to be at market rates, and there is no significant economic disproportionality between us and other partners.

Condensed Combined Balance Sheets:


	April 30, 2024		October 31, 2023
Cash and cash equivalents	$	176,417	$	161,274
Inventory	1,398,222		1,425,145
Loans receivable – net	17,009		17,024
Rental properties	2,393,332		1,907,604
Rental properties under development	1,746,741		1,804,664
Other assets	452,134		385,197
Total assets	$	6,183,855	$	5,700,908
Debt – net of deferred financing costs	$	3,024,164	$	2,711,986
Other liabilities	506,851		498,866
Partners’ equity	2,652,840		2,490,056
Total liabilities and equity	$	6,183,855	$	5,700,908
Company’s net investment in unconsolidated entities (1)	$	1,002,458	$	959,041

(1) Our underlying equity in the net assets of the unconsolidated entities was less than our net investment in unconsolidated entities by $20.4 million and $40.9 million as of April 30, 2024 and October 31, 2023, respectively, and these differences are primarily a result of interest capitalized on our investments; the estimated fair value of the guarantees provided to the joint ventures; distributions from entities in excess of the carrying amount of our net investment; unrealized gains on our retained joint venture interests; other than temporary impairments we have recognized; and gains recognized from the sale of our ownership interests.

Condensed Combined Statements of Operations:


	Three months ended April 30,				Six months ended April 30,
	2024		2023		2024		2023
Revenues	$	127,336	$	125,397	$	284,531	$	237,116
Cost of revenues	81,520		78,613		166,801		137,966
Other expenses	72,443		56,655		139,767		119,729
Total expenses	153,963		135,268		306,568		257,695

Loss from operations	(26,627)		(9,871)		(22,037)		(20,579)
Other income (loss) (2)	111,871		(2,276)		109,910		(3,632)
Income (loss) before income taxes	85,244		(12,147)		87,873		(24,211)
Income tax benefit	(2,069)		(148)		(2,349)		(166)
Net income (loss)	87,313		(11,999)		90,222		(24,045)




Company’s income (loss) from unconsolidated entities (3)	$	5,887	$	(5,302)	$	(3,285)	$	(9,735)

(3) Differences between our loss from unconsolidated entities and our percentage interest in the underlying net income (loss) of the entities are generally a result of distributions from entities in excess of the carrying amount of our investment; promote earned on the gains recognized by joint ventures and those promoted cash flows being distributed; other than temporary impairments we have recognized; 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; our share of the entities’ profits related to home sites purchased by us which reduces our cost basis of the home sites acquired; and amortization of other basis differences.