Commitments and Contingencies
Lease Commitments
The following table sets forth our fixed lease payment commitments as a lessee as of December 31, 2025, for the periods below:
YearOperating
Leases
Finance
Leases
2026
$5,105 $5,314 
2027
5,645 4,807 
2028
5,061 2,938 
2029
4,534 1,705 
20304,121 32 
Thereafter22,018 — 
Total lease payments46,484 14,796 
Less: imputed interest(10,990)(1,284)
Total lease liability$35,494 $13,512 
The components of lease expense for the years ended December 31, 2025, 2024, and 2023 are as follows:
For the Years Ended December 31,
202520242023
Operating lease cost:
Fixed lease cost$5,743 $4,225 $3,317 
Variable lease cost1,691 1,574 1,515 
Total operating lease cost$7,434 $5,799 $4,832 
Finance lease cost:
Amortization of ROU assets$4,378 $4,006 $2,790 
Interest on lease liabilities621 581 375 
Total finance lease cost$4,999 $4,587 $3,165 

New-Build Commitments
As of December 31, 2025, we have entered into binding development and purchase agreements for 809 homes over the next two years. Remaining commitments under these agreements total approximately $220,000 as of December 31, 2025.
Insurance Policies
Pursuant to the terms of certain of our loan agreements (see Note 7), laws and regulations of the jurisdictions in which our properties are located, and general business practices, we are required to procure insurance on our properties. As of December 31, 2025, there are no material contingent liabilities related to uninsured losses with respect to our properties.
Legal and Other Matters
We are subject to various legal proceedings and claims that arise in the ordinary course of our business as well as governmental and regulatory inquiries and engagements. We accrue a liability when we believe that it is both probable that a liability has been incurred and that we can reasonably estimate the amount of the loss. We do not believe that the final outcome of these proceedings or matters will have a material adverse effect on our consolidated financial statements.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 27, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 22, 2022
2020Feb 19, 2021
2019Feb 19, 2020
2018Feb 28, 2019
2017Mar 29, 2018

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.