Company: LGIH
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001580670-25-000016
Chunk: 15

Company: LGI Homes, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 15
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37,140 104,459 Total real estate inventory$3,387,853 $3,107,648 

Our real estate not owned relates to land banking financing arrangements with a third-party land banker to repurchase land that we sold to the land banker as a method of acquiring finished lots in staged takedowns, while limiting risk and minimizing the use of funds from our available cash or other financing sources.  See “Real Estate Inventory” under Note 2 for more information. 

4.     PROPERTY AND EQUIPMENT

Property and equipment consist of the following (in thousands):December 31,   20242023         Rental properties$54,435 $43,324 Computer software and equipment4,937 3,946 Leasehold improvements1,799 1,722 Furniture and fixtures2,906 2,091 Machinery and equipment261 231 Total property and equipment64,338 51,314 Less: Accumulated depreciation(7,300)(5,792)Property and equipment, net$57,038 $45,522 We build and lease a number of single-family homes in select, existing communities.  During the years ended December 31, 2024 and 2023, we transferred $25.1 million and $13.5 million, respectively, of home assets from real estate 

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inventory to rental properties within property and equipment, net. During the year ended December 31, 2024, we had a bulk sale of 103 leased, single family homes and realized gains of $14.0 million included in Other income, net.

Depreciation expense incurred for the years ended December 31, 2024, 2023 and 2022 was $3.1 million, $2.4 million and $1.6 million, respectively. 

5.     ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued and other liabilities consist of the following (in thousands):December 31,   20242023Real estate inventory development and construction payable$48,019 $71,193 Taxes payable43,076 14,694 Land banking financing arrangements37,140 104,459 Accrued compensation, bonuses and benefits18,653 22,550 Warranty reserve16,100 13,600 Accrued interest13,560 13,522 Inventory related obligations8