What changed in this filing

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Item 1. Financial Statements

2025-04-22 compared with 2025-01-23 · 117 added, 72 removed, 326 unchanged (37% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

(In millions, except share data)

15 unchanged sentences

50,823,800 and 50,653,637 shares issued and outstanding

at December 31, 2024 and September 30, 2024, respectively

at March 31, 2025 and September 30, 2024, respectively

Additional paid-in capital 667.8 665.2

7 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

(In millions, except per share amounts)

4 unchanged sentences

Interest and other income ( 1.0 ) ( 5.0 ) ( 3.3 ) ( 11.3 )

Loss on extinguishment of debt 1.1 — 1.1 —

Income before income taxes 40.7 58.9 62.6 110.1

20 unchanged sentences

$ 50.7 $ 667.7 $ 894.7 $ 1.0 $ 1,614.1

— — 31.6 — 31.6

Stock issued under employee benefit plans ( 153,854 shares)

0.1 — — — 0.1

Cash paid for shares withheld for taxes

— ( 1.6 ) — — ( 1.6 )

Stock-based compensation expense

— 1.7 — — 1.7

Balances at March 31, 2025 ( 50,823,800 shares)

$ 50.8 $ 667.8 $ 926.3 $ 1.0 $ 1,645.9

Common Stock Additional Paid-in Capital Retained Earnings Non-controlling Interests Total Equity

10 unchanged sentences

$ 49.9 $ 644.9 $ 713.0 $ 1.0 $ 1,408.8

— — 45.0 — 45.0

Issuance of common stock ( 546,174 shares)

0.5 19.2 — — 19.7

Stock issued under employee benefit plans ( 146,835 shares)

0.2 — — — 0.2

Cash paid for shares withheld for taxes

— ( 2.6 ) — — ( 2.6 )

Stock-based compensation expense

— 1.8 — — 1.8

Balances at March 31, 2024 ( 50,602,722 shares)

$ 50.6 $ 663.3 $ 758.0 $ 1.0 $ 1,472.9

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended December 31,

Six Months Ended March 31,

(In millions)

6 unchanged sentences

Impairments and land option charges 2.0 0.4

Loss on extinguishment of debt 1.1 —

Changes in operating assets and liabilities:

1 unchanged sentence

( 495.2 ) ( 316.1 )

Decrease (increase) in other assets

Decrease in accounts payable and other accrued liabilities

Increase in other assets

( 16.8 ) ( 2.1 )

Decrease in accrued development costs

Decrease in accounts payable and other accrued liabilities

( 40.0 ) ( 12.1 )

(Decrease) increase in accrued development costs

Increase in earnest money deposits on sales contracts

6 unchanged sentences

FINANCING ACTIVITIES

Borrowings under revolving credit facility 100.0 —

Issuance of common stock — 19.7

Additions to debt 745.0 —

Repayment of debt ( 574.4 ) —

Deferred financing fees ( 6.3 ) —

Cash paid for shares withheld for taxes ( 1.6 ) ( 2.8 )

Net cash provided by (used in) financing activities 99.9 ( 0.2 )

Net cash provided by financing activities 162.7 16.9

Decrease in cash and cash equivalents

14 unchanged sentences

Noncontrolling interests in consolidated pass-through entities are recognized before income taxes.

Net income attributable to noncontrolling interests is zero for both periods presented in the Company's statements of operations.

Net income attributable to noncontrolling interests is zero for all periods presented in the Company's statements of operations.

The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income.

9 unchanged sentences

Horton is considered a related party of Forestar under GAAP.

As of December 31, 2024, D.R.

As of March 31, 2025, D.R.

Horton owned approximately 62 % of the Company's outstanding common stock.

23 unchanged sentences

Real estate consists of:

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

(In millions)

2 unchanged sentences

$ 2,759.4 $ 2,266.2

In the three months ended December 31, 2024, the Company invested $ 387.4 million for the acquisition of residential real estate and $ 297.0 million for the development of residential real estate.

At December 31, 2024 and September 30, 2024, land held for future development primarily consisted of undeveloped land which the Company has under contract to sell to D.R.

In the six months ended March 31, 2025, the Company invested $ 460.4 million for the acquisition of residential real estate and $ 564.2 million for the development of residential real estate.

At March 31, 2025 and September 30, 2024, land held for future development primarily consisted of undeveloped land which the Company has under contract to sell to D.R.

Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12 % to 16 % per annum.

1 unchanged sentence

As a result of this process, no impairment charges were recorded for either period presented in the consolidated statements of operations.

In the three months ended December 31, 2024 and 2023, land purchase contract deposit and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $ 1.1 million and $ 0.2 million, respectively.

In the three and six months ended March 31, 2025, land purchase contract deposit and pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $ 0.9 million and $ 2.0 million, respectively, compared to $ 0.2 million and $ 0.4 million in the prior year periods.

These land option charges are included in cost of sales in the consolidated statements of operations.

1 unchanged sentence

Revenues consist of:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

(In millions)

7 unchanged sentences

During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred.

In the first three months of fiscal 2025 and fiscal 2024, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate.

The following table summarizes the Company’s interest costs incurred, capitalized and expensed in the three months ended December 31, 2024 and 2023.

Three Months Ended December 31,

In the first six months of fiscal 2025 and fiscal 2024, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate.

The following table summarizes the Company’s interest costs incurred, capitalized and expensed in the three and six months ended March 31, 2025 and 2024.

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

(In millions)

4 unchanged sentences

Note 6 — Other Assets, Accrued Expenses and Other Liabilities

The Company's other assets at December 31, 2024 and September 30, 2024 were as follows:

December 31, 2024 September 30, 2024

The Company's other assets at March 31, 2025 and September 30, 2024 were as follows:

March 31, 2025 September 30, 2024

(In millions)

3 unchanged sentences

Land purchase contract deposits 36.2 23.4

Income taxes receivable 5.2 —

Contract assets 10.1 8.9

1 unchanged sentence

$ 101.9 $ 85.3

The Company's accrued expenses and other liabilities at December 31, 2024 and September 30, 2024 were as follows:

December 31, 2024 September 30, 2024

The Company's accrued expenses and other liabilities at March 31, 2025 and September 30, 2024 were as follows:

March 31, 2025 September 30, 2024

(In millions)

11 unchanged sentences

The Company's notes payable at their carrying amounts consist of the following:

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

(In millions)

2 unchanged sentences

5.0 % senior notes due 2028 (1)

6.5 % senior notes due 2033 (1)

Other note payable 9.9 9.9

1 unchanged sentence

______________

(1) Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $ 3.1 million and $ 3.5 million at December 31, 2024 and September 30, 2024, respectively.

(1) Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $ 8.0 million and $ 3.5 million at March 31, 2025 and September 30, 2024, respectively.

Bank Credit Facility

The Company has a senior unsecured revolving credit facility that was amended in December 2024 to increase its capacity from $ 410 million to $ 640 million and to raise the uncommitted accordion feature that could increase the size of the facility to $ 1 billion, subject to certain conditions and availability of additional bank commitments.

The amendment also extended the maturity date of the facility.

The Company has a $ 640 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $ 1 billion, subject to certain conditions and availability of additional bank commitments.

The facility includes bank commitments of $ 575 million maturing on December 18, 2029 and $ 65 million maturing on October 28, 2026.

2 unchanged sentences

Letters of credit issued under the facility reduce the available borrowing capacity.

At December 31, 2024, there were $ 100 million of borrowings outstanding at a 5.9 % annual interest rate and $ 27.5 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $ 512.5 million.

At March 31, 2025, there were no borrowings outstanding and $ 22.3 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $ 617.7 million.

The revolving credit facility is guaranteed by the Company’s wholly-owned subsidiaries that are not immaterial subsidiaries and have not been designated as unrestricted subsidiaries.

3 unchanged sentences

A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity.

At December 31, 2024, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility.

At March 31, 2025, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility.

The Company has outstanding senior notes as described below that were issued pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act").

1 unchanged sentence

The notes are guaranteed by each of the Company's subsidiaries to the extent such subsidiaries guarantee the Company's revolving credit facility.

The Company's $ 400 million principal amount of 3.85 % senior notes (the "2026 notes") mature May 15, 2026 with interest payable semi-annually .

On or after May 15, 2023, the 2026 notes may be redeemed at 101.925 % of their principal amount plus any accrued and unpaid interest.

In accordance with the indenture, the redemption price decreases annually thereafter and the 2026 notes can be redeemed at par on or after May 15, 2025 through maturity.

In March 2025, the Company issued $ 500 million principal amount of 6.5 % senior notes due March 15, 2033 (the "2033 notes"), with interest payable semiannually .

The annual effective interest rate of the 2033 notes after giving effect to the amortization of financing costs is 6.7 %.

The Company's $ 300 million principal amount of 5.0 % senior notes (the "2028 notes") mature March 1, 2028 with interest payable semi-annually .

On or after March 1, 2023, the 2028 notes may be redeemed at 102.5 % of their principal amount plus any accrued and unpaid interest.

The net proceeds from this issuance were primarily used to fund the Company's tender offer to purchase any and all of its outstanding $ 400 million principal amount of 3.85 % senior notes due 2026 (the "2026 notes"), of which $ 329.4 million aggregate principal amount was tendered.

The repurchase price of $ 333.4 million included accrued and unpaid interest of $ 4.2 million.

The Company recognized a $ 1.1 million loss on extinguishment of debt upon repurchase of the notes.

At any time prior to March 15, 2028 , the Company may, on one or more occasions, redeem up to 40 % of the aggregate principal amount of the 2033 notes with the net cash proceeds from certain equity offerings at a redemption price of 106.5 % of the principal amount of the 2033 notes being redeemed.

At any time prior to March 15, 2028 , the Company may redeem some or all of the 2033 notes at a redemption price of 100 % of the principal amount thereof plus a specified “make whole” premium described in the indenture.

The Company also has the option, at any time on or after March 15, 2028 to redeem some or all of the 2033 notes at 103.25 % of their principal amount plus any accrued and unpaid interest.

In accordance with the indenture, the redemption price decreases annually thereafter and the 2033 notes can be redeemed at par on or after March 15, 2030 through maturity.

The Company's remaining $ 70.6 million principal amount of 2026 notes mature May 15, 2026 with interest payable semiannually .

Until May 15, 2025 , the 2026 notes may be redeemed at 100.963 % of their principal amount plus any accrued and unpaid interest, and the 2026 notes can be redeemed at par on or after May 15, 2025 through maturity.

The annual effective interest rate of the 2026 notes after giving effect to the amortization of financing costs is 4.1 %.

The indentures governing the senior notes require that, upon the occurrence of both a change of control and a rating decline (as defined in each indenture), the Company offer to purchase the applicable series of notes at 101% of their principal amount.

If the Company or its restricted subsidiaries dispose of assets, under certain circumstances, the Company will be required to either invest the net cash proceeds from such asset sales in its business within a specified period of time, repay certain senior secured debt or debt of its non-guarantor subsidiaries, or make an offer to purchase a principal amount of such notes equal to the excess net cash proceeds at a purchase price of 100% of their principal amount.

The indentures contain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to pay dividends or distributions, repurchase equity, prepay subordinated debt and make certain investments;

The Company's $ 300 million principal amount of 5.0 % senior notes (the "2028 notes") mature March 1, 2028 with interest payable semiannually .

Until March 1, 2026 , the 2028 notes may be redeemed at 100.833 % of their principal amount plus any accrued and unpaid interest, and the 2028 notes can be redeemed at par on or after March 1, 2026 through maturity.

The annual effective interest rate of the 2028 notes after giving effect to the amortization of financing costs is 5.2 %.

Under the indentures governing the 2026 notes and 2028 notes, if the Company or its restricted subsidiaries dispose of assets, under certain circumstances, the Company will be required to either invest the net cash proceeds from such asset sales in its business within a specified period of time, repay certain senior secured debt or debt of its non-guarantor subsidiaries, or make an offer to purchase a principal amount of such notes equal to the excess net cash proceeds at a purchase price of 100% of their principal amount.

The indentures governing the 2026 notes and 2028 notes contain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to pay dividends or distributions, repurchase equity, prepay subordinated debt and make certain investments;

incur additional debt or issue mandatorily redeemable equity;

3 unchanged sentences

and allow to exist certain restrictions on the ability of subsidiaries to pay dividends or make other payments.

At December 31, 2024, the Company was in compliance with all of the limitations and restrictions associated with its senior note obligations.

The indenture governing the 2033 notes contains certain covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to create certain liens on assets;

engage in certain sale and leaseback transactions;

and merge or consolidate with another company or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the Company’s assets.

At March 31, 2025, the Company was in compliance with all of the limitations and restrictions associated with its senior note obligations.

Effective April 30, 2020, the Board of Directors authorized the repurchase of up to $ 30 million of the Company’s debt securities.

The authorization has no expiration date.

All of the $ 30 million authorization was remaining at December 31, 2024.

All of the $ 30 million authorization was remaining at March 31, 2025.

Other Note Payable

3 unchanged sentences

The computations of basic and diluted earnings per share are as follows:

Three Months Ended December 31,

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

(In millions, except share and per share amounts)

6 unchanged sentences

Note 9 — Income Taxes

The Company’s income tax expense for the three months ended December 31, 2024 was $ 5.4 million compared to $ 13.0 million in the prior year period.

The effective tax rate was 24.7 % for the three months ended December 31, 2024 compared to 25.4 % in the prior year period.

The effective tax rate for both periods included an expense for state income taxes and nondeductible expenses.

At December 31, 2024, the Company had deferred tax liabilities, net of deferred tax assets , of $ 65.8 million.

The Company’s income tax expense for the three and six months ended March 31, 2025 was $ 9.1 million and $ 14.5 million compared to $ 13.9 million and $ 26.9 million in the prior year periods.

The effective tax rate was 22.4 % and 23.2 % for the three and six months ended March 31, 2025 compared to 23.6 % and 24.4 % in the prior year periods.

The effective tax rate for all periods included an expense for state income taxes and nondeductible expenses and a benefit for stock-based compensation.

The effective tax rate for the three and six months ended March 31, 2025 also included a benefit for nontaxable income.

At March 31, 2025, the Company had deferred tax liabilities, net of deferred tax assets , of $ 74.2 million.

The deferred tax assets were partially offset by a valuation allowance of $ 0.7 million, resulting in a net deferred tax liability of $ 74.9 million.

7 unchanged sentences

The Company has an effective shelf registration statement, filed with the Securities and Exchange Commission in September 2024, registering $ 750 million of equity securities, of which $ 300 million is reserved for sales under the at-the-market equity offering program that the Company entered into in November 2024.

During the three months ended December 31, 2024, the Company did not issue any shares under its at-the-market equity offering program.

At December 31, 2024, the full $ 750 million remained available for issuance under the Company's shelf registration statement, with $ 300 million reserved for sales under the at-the-market equity offering program.

During the three and six months ended March 31, 2025, the Company did not issue any shares under its at-the-market equity offering program.

At March 31, 2025, the full $ 750 million remained available for issuance under the Company's shelf registration statement, with $ 300 million reserved for sales under the at-the-market equity offering program.

Stock-Based Compensation

3 unchanged sentences

The stock units have no dividend or voting rights until vested.

In the three months ended December 31, 2024 , the Company granted 99,097 PSUs to its executive officers.

In the six months ended March 31, 2025 , the Company granted 99,097 PSUs to its executive officers.

The number of units that ultimately vest depends on the achievement of three performance criteria which are (i) relative total stockholder return, (ii) return on inventory and (iii) market share goals, and can range from 0 % to 200 % of the number of units granted.

2 unchanged sentences

The grant date fair value of these equity awards was $ 35.20 per unit.

Compensation expense related to this grant was $ 0.3 million in the three months ended December 31, 2024, based on an estimate of the Company’s achievement of the three performance criteria, the elapsed portion of the performance period and the grant date fair value of the award.

In the three months ended December 31, 2024, a total of 306,300 RSUs were granted.

Compensation expense related to the Company's PSUs was $ 0.3 million and $ 0.6 million in the three and six months ended March 31, 2025, based on an estimate of the Company’s achievement of the three performance criteria, the elapsed portion of the performance period and the grant date fair value of the award.

In the six months ended March 31, 2025, a total of 306,300 RSUs were granted.

The weighted average grant date fair value of these equity awards was $ 29.00 per unit, and they vest annually in equal installments over periods of three to five years.

Compensation expense related to these grants was $ 2.3 million in the three months ended December 31, 2024, which included $ 1.1 million of expense recognized for employees that were retirement eligible on the date of the grant.

Total stock-based compensation expense related to the Company's equity awards for the three months ended December 31, 2024 was $ 2.6 million compared to $ 0.9 million in the prior year period.

Compensation expense related to the Company's RSUs was $ 1.4 million and $ 3.7 million in the three and six months ended March 31, 2025.

Stock-based compensation expense in the six months ended March 31, 2025 included $ 1.1 million of expense recognized for employees that were retirement eligible on the date of the grant compared to $ 0.7 million in the prior year period.

Total stock-based compensation expense related to the Company's equity awards for the three and six months ended March 31, 2025 was $ 1.7 million and $ 4.3 million compared to $ 1.8 million and $ 2.7 million in the prior year periods.

Note 11 — Commitments and Contingencies

1 unchanged sentence

In support of the Company's residential lot development business, it issues letters of credit under the revolving credit facility and has a surety bond program that provides financial assurance to beneficiaries related to the execution and performance of certain development obligations.

At December 31, 2024, the Company had outstanding letters of credit of $ 27.5 million under the revolving credit facility and surety bonds of $ 799.4 million issued by third parties to secure performance under various contracts.

At March 31, 2025, the Company had outstanding letters of credit of $ 22.3 million under the revolving credit facility and surety bonds of $ 804.4 million issued by third parties to secure performance under various contracts.

The Company expects that its performance obligations secured by these letters of credit and bonds will generally be completed in the ordinary course of business and in accordance with the applicable contractual terms.

12 unchanged sentences

Land purchase contract deposits and capitalized pre-acquisition costs are expensed to cost of sales when the Company believes it is probable that it will not acquire the property under contract and will not be able to recover these costs through other means.

At December 31, 2024, the Company had total deposits of $ 23.6 million related to contracts to purchase land with a total remaining purchase price of approximately $ 796.1 million.

At March 31, 2025, the Company had total deposits of $ 36.2 million related to contracts to purchase land with a total remaining purchase price of approximately $ 783.7 million.

The majority of land and lots under contract are currently expected to be purchased within 3 years.

None of the land purchase contracts were subject to specific performance provisions at December 31, 2024.

Non e of the land purchase contracts were subject to specific performance provisions at March 31, 2025.

Note 12 — Related Party Transactions

2 unchanged sentences

Horton provides the Company with certain administrative, compliance, operational and procurement services.

In the three months ended December 31, 2024 and 2023, selling, general and administrative expense in the consolidated statements of operations included $ 1.8 million and $ 1.3 million for these shared services, $ 3.5 million and $ 2.4 million reimbursed to D.R.

In the six months ended March 31, 2025 and 2024, selling, general and administrative expense in the consolidated statements of operations included $ 3.6 million and $ 2.6 million for these shared services, $ 6.9 million and $ 4.0 million reimbursed to D.R.

Horton for the cost of health insurance and other employee benefits and $ 0.5 million and $ 3.1 million for other corporate and administrative expenses paid by D.R.

2 unchanged sentences

Horton, both companies identify land development opportunities to expand Forestar's portfolio of assets.

At December 31, 2024 and September 30, 2024, the Company owned approximately 68,300 and 57,800 residential lots, respectively, of which D.R.

At March 31, 2025 and September 30, 2024, the Company owned approximately 68,400 and 57,800 residential lots, respectively, of which D.R.

Horton had the following involvement.

December 31, 2024 September 30, 2024

March 31, 2025 September 30, 2024

(Dollars in millions)

8 unchanged sentences

Lot and land sales to D.R.

Horton in the three months ended December 31, 2024 and 2023 were as follows:

Three Months Ended December 31,

Horton in the three and six months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31, Six Months Ended March 31,

2025 2024 2025 2024

(Dollars in millions)

4 unchanged sentences

Decrease in contract liabilities on lot sales to D.R.

$ — $ 2.1 $ 1.2 $ 2.8

Tract sales and other revenues from D.R.

In the three months ended December 31, 2024, the Company reimbursed D.R.

Horton approximately $ 4.2 million for pre-acquisition and other due diligence and development costs related to land purchase contracts identified by D.R.

Horton that the Company independently underwrote and closed compared to reimbursements of $ 4.6 million in the prior year period.

In the three months ended December 31, 2024, the Company reimbursed D.R.

Horton approximately $ 10.0 million for previously paid earnest money related to those land purchase contracts compared to reimbursements of $ 13.3 million in the prior year period.

In the three months ended December 31, 2024, the Company purchased $ 2.1 million of water rights from D.R.

In the three months ended December 31, 2024, the Company paid D.R.

Horton $ 0.1 million for land development services compared to $ 0.5 million for these services in the prior year period.

$ 2.0 $ 1.3 $ 4.0 $ 1.3

In the three and six months ended March 31, 2025, the Company reimbursed D.R.

Horton approximately $ 4.0 million and $ 8.2 million for pre-acquisition and other due diligence and development costs related to land purchase contracts identified by D.R.

Horton that the Company independently underwrote and closed compared to reimbursements of $ 6.1 million and $ 10.7 million in the prior year periods.

In the three and six months ended March 31, 2025, the Company reimbursed D.R.

Horton approximately $ 4.6 million and $ 14.6 million for previously paid earnest money related to those land purchase contracts compared to reimbursements of $ 5.4 million and $ 18.7 million in the prior year periods.

In the six months ended March 31, 2025, the Company purchased $ 2.1 million of water rights from D.R.

In both the three and six months ended March 31, 2025, the Company paid D.R.

Horton $ 0.1 million for land development services compared to $ 0.2 million and $ 0.7 million for these services in the prior year periods.

These amounts are included in cost of sales in the Company’s consolidated statements of operations.

At December 31, 2024 and September 30, 2024, land held for future development primarily consisted of undeveloped land which the Company has under contract to sell to D.R.

At March 31, 2025 and September 30, 2024, land held for future development primarily consisted of undeveloped land which the Company has under contract to sell to D.R.

Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12 % to 16 % per annum.

At December 31, 2024, accrued expenses and other liabilities on the Company's consolidated balance sheets included $ 2.1 million owed to D.R.

At March 31, 2025, accrued expenses and other liabilities on the Company's consolidated balance sheets included $ 3.4 million owed to D.R.

Horton for any accrued and unpaid shared service charges, land purchase contract deposits and due diligence and other development cost reimbursements compared to $ 5.2 million at September 30, 2024.

9 unchanged sentences

The Company elected not to use the fair value option for cash and cash equivalents and debt.

For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at December 31, 2024 and September 30, 2024.

Fair Value at December 31, 2024

For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at March 31, 2025 and September 30, 2024.

Fair Value at March 31, 2025

Carrying Value Level 1 Level 2 Level 3 Total

11 unchanged sentences

(a) The fair values of cash and cash equivalents approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy.

(b) At December 31, 2024 and September 30, 2024, debt primarily consisted of the Company's senior notes.

(b) At March 31, 2025 and September 30, 2024, debt primarily consisted of the Company's senior notes.

The fair value of the senior notes is determined based on quoted market prices in markets that are not active, which is classified as Level 2 within the fair value hierarchy.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements