Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 133

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 133
---
 adjusted in connection with an increase in the amount of the loan. The loan is unconditionally guaranteed as to payment and performance by the Company under a limited recourse guaranty with respect to (i) certain losses and liabilities to the extent such losses or liabilities are actually incurred by the lender and (ii) the entire amount of the loan upon the occurrence of certain events. The loan is unconditionally guaranteed as to payment and performance by LGI Living – ER FIN, LLC, as the direct owner of the equity interests in LGI Living SFR, but recourse under such guaranty is limited to LGI Living – ER FIN, LLC’s equity interests in LGI Living SFR, which are pledged as collateral for the loan. The loan is also secured by a security interest in all assets of LGI Living SFR, including a mortgage lien on certain of LGI Living SFR’s real property. The Loan Agreement includes certain restrictive covenants that may limit LGI Living SFR’s ability to, among other things, incur additional indebtedness or make certain investments. The Loan Agreement contains representations and warranties, affirmative covenants, and events of default, all of which the Company believes are customary for special purpose subsidiary real estate secured loan agreements. If an event of default exists under the Loan Agreement, the lender will be able to accelerate the maturity of the loan and exercise other rights and remedies.

One Big Beautiful Bill Act

On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions affecting corporations. The OBBBA, among other changes, terminates the energy efficient homes tax credit for homes closing after June 30, 2026. However, none of these tax law changes are expected to have an impact on the consolidated financial statements beginning in the period in which the OBBBA was signed into law.

Key Results 

Key financial results as of and for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, were as follows:

•Home sales revenues decreased 19.8% to $483.5 million from $602.5 million.

•Homes closed decreased 20.1% to 1,323 homes from 1,655 homes.

•Average sales price per home closed increased 0.4% to $365,446 from $364,047. 

•Gross margin as a percentage