Company: LGIH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001580670-25-000043
Chunk: 62

Company: LGI Homes, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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3,553,143 $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 three months ended March 31, 2025 and 2024, we transferred $13.4 million and $3.9 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):March 31,December 31,20252024Real estate inventory development and construction payable$55,437 $48,019 Taxes payable5,055 43,076 Land banking financing arrangements28,565 37,140 Accrued compensation, bonuses and benefits7,769 18,653 Warranty reserve16,500 16,100 Accrued interest26,344 13,560 Inventory related obligations8,147 8,779 Lease liability6,104 6,134 Contract deposits5,197 4,143 Other10,556 11,713 Total accrued expenses and other liabilities$169,674 $207,317 Land Banking Financing ArrangementsWe have 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. Principal payments on these financing arrangements will generally coincide with the repurchase of lot takedowns from the land banker. We expect to complete the repurchase of all lots via takedowns associated with these transactions over the course of approximately one year.Inventory Related ObligationsWe own lots in certain communities in Florida and Texas that have Community Development Districts or similar utility and infrastructure development special assessment programs that allocate a fixed amount of debt service associated with development activities to each lot. This obligation for infrastructure development is attached to the land, which is typically payable over a 30-year period and is ultimately assumed by the homebuyer when home sales are closed. The obligations assumed by the homebuyer represent a non-cash cost