Lennar Multifamily Segment

The Company is actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. The Lennar Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.

The assets and liabilities related to the Lennar Multifamily segment were as follows:



	November 30,
(In thousands)	2015		2014
Assets:
Cash and cash equivalents	$	8,041	2,186
Land under development	115,982		120,666
Consolidated inventory not owned	5,508		5,508
Investments in unconsolidated entities	250,876		105,674
Operating properties and equipment	621		15,740
Other assets	34,324		18,240
	$	415,352	268,014
Liabilities:
Accounts payable and other liabilities	$	62,943	48,235
Liabilities related to consolidated inventory not owned	4,007		4,008
	$	66,950	52,243

The unconsolidated entities in which the Lennar Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the loans to Lennar Multifamily unconsolidated entities, the Company (or entities related to them) has been required to give guarantees of completion and cost over-runs to the lenders and partners. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. If the construction is to be done in phases, the guarantee generally is limited to completing only the phases as to which construction has already commenced and for which loan proceeds were used. Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company. Generally, these payments would be increases to our investments in the entities and would increase our share of funds the entities distribute after the achievement of certain thresholds. As of both November 30, 2015 and 2014, the fair value of the completion guarantees was immaterial. Additionally, as of November 30, 2015 and 2014, the Lennar Multifamily segment had $37.9 million and $23.5 million, respectively, of letters of credit outstanding primarily for credit enhancements for the bank debt of certain of its unconsolidated entities. These letters of credit outstanding were included in the disclosure in Note 6 related to the Company's performance and financial letters of credit. As of November 30, 2015 and 2014, the Lennar Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $466.7 million and $163.4 million, respectively.

In many instances, the Lennar Multifamily segment is appointed as the construction and property manager of certain of its Lennar Multifamily unconsolidated entities and receives fees for performing this function. During the years ended November 30, 2015 and 2014, the Lennar Multifamily segment received fees from its unconsolidated entities totaling $27.2 million and $13.5 million, respectively.

During the years ended November 30, 2015 and 2014, the Lennar Multifamily segment provided general contractor services for the construction of some of its rental properties owned by unconsolidated entities in which the Company has an investment and received fees totaling $142.7 million and $50.9 million, respectively, which were offset by costs related to those services of $138.6 million and $49.0 million, respectively.

In July 2015, the Lennar Multifamily segment completed the initial closing of the Lennar Multifamily Venture (the "Venture") for the development, construction and property management of class-A multifamily assets. The Venture has approximately $1.1 billion of equity commitments, including a $504 million co-investment commitment by Lennar comprised of cash, undeveloped land and preacquisition costs. It will be seeded with 22 undeveloped multifamily assets that were previously purchased or under contract by the Lennar Multifamily segment totaling approximately 7,100 apartments with projected project costs of $2.4 billion as of November 30, 2015. During the year ended November 30, 2015, $275.5 million of the $1.1 billion in equity commitments were called, of which the Company contributed its portion of $125.7 million, resulting in a remaining equity commitment of $378.3 million. As of November 30, 2015, the carrying value of the Company's investment in the Venture was $122.5 million.

Summarized condensed financial information on a combined 100% basis related to Lennar Multifamily's investments in unconsolidated entities that are accounted for by the equity method was as follows:

Balance Sheets

	November 30,
(In thousands)	2015		2014
Assets:
Cash and cash equivalents	$	39,579	25,319
Operating properties and equipment	1,398,244		637,259
Other assets	25,925		14,742
	$	1,463,748	677,320
Liabilities and equity:
Accounts payable and other liabilities	$	179,551	87,151
Notes payable	466,724		163,376
Equity	817,473		426,793
	$	1,463,748	677,320

Statements of Operations

	Years Ended November 30,
(In thousands)	2015		2014	2013
Revenues	$	16,309	4,855	—
Costs and expenses	27,190		7,435	1,493
Other income, net	43,340		35,068	—
Net earnings (loss) of unconsolidated entities	$	32,459	32,488	(1,493	)
Lennar Multifamily equity in earnings (loss) from unconsolidated entities (1)	$	19,518	14,454	(271	)


(1)	During each of the years ended November 30, 2015 and 2014, the Lennar Multifamily segment sold two operating properties through unconsolidated entities resulting in the segment's $22.2 million and $14.7 million share of gains, respectively.