Company: LGIH
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001580670-25-000076
Chunk: 16

Company: LGI Homes, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 for retrospective application. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.  Early adoption is permitted. We are currently evaluating the impact that this standard will have on our disclosures.

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2.     REAL ESTATE INVENTORY

Our real estate inventory consists of the following (in thousands):September 30,December 31,20252024Land, land under development and finished lots$2,590,593 $2,287,352 Information centers61,080 57,622 Homes in progress258,651 325,579 Completed homes723,066 680,160 Total owned inventory3,633,390 3,350,713 Real estate not owned13,555 37,140 Total real estate inventory$3,646,945 $3,387,853 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. We build and lease a number of single-family homes in select, existing communities. During the nine months ended September 30, 2025 and 2024, we transferred $58.3 million and $17.4 million, respectively, of home assets from real estate inventory to rental properties within property and equipment, net. We are lessors of the homes representing these home assets.

3.    ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued and other liabilities consist of the following (in thousands):September 30,December 31,20252024Real estate inventory development and construction payable$58,306 $48,019 Taxes payable3,354 43,076 Land banking financing arrangements13,555 37,140 Accrued compensation, bonuses and benefits11,717 18,653 Warranty reserve15,500 16,100 Accrued interest27,150 13,560 Inventory related obligations12,443 8,779 Lease liability5,568 6,134 Contract deposits3,308 4,143 Other20,185 11,713 Total accrued expenses and other liabilities$171,086 $207,317 Land Banking