Lennar Homebuilding Investments in Unconsolidated Entities (Tables)

6 Months Ended

May 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

The total debt of the Lennar Homebuilding unconsolidated entities in which the Company has investments, including Lennar's maximum recourse exposure, were as follows:



(Dollars in thousands)	May 31, 2017			November 30, 2016
Non-recourse bank debt and other debt (partner’s share of several recourse)	$	73,239		48,945
Non-recourse land seller debt and other debt (1)	1,997			323,995
Non-recourse debt with completion guarantees	305,420			147,100
Non-recourse debt without completion guarantees	327,877			320,372
Non-recourse debt to the Company	708,533			840,412
The Company’s maximum recourse exposure (2)	80,468			52,438
Debt issuance costs	(5,662		)	(4,186	)
Total debt	$	783,339		888,664
The Company’s maximum recourse exposure as a % of total JV debt	10		%	6	%


(1)	Non-recourse land seller debt and other debt as of November 30, 2016 included a $320 million non-recourse note related to a transaction between one of the Company's unconsolidated entities and another unconsolidated joint venture, which was settled in December 2016.

(2)

As of May 31, 2017 and November 30, 2016, the Company's maximum recourse exposure was primarily related to the Company providing repayment guarantees on three unconsolidated entities' debt and one unconsolidated entity's debt, respectively.Balance Sheets



(In thousands)	May 31, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	393,507	221,334
Inventories	3,979,975		3,889,795
Other assets	961,126		1,334,116
	$	5,334,608	5,445,245
Liabilities and equity:
Accounts payable and other liabilities	$	651,791	791,245
Debt (1)	783,339		888,664
Equity	3,899,478		3,765,336
	$	5,334,608	5,445,245

(1)

Debt presented above is net of debt issuance costs of $5.7 million and $4.2 million, as of May 31, 2017 and November 30, 2016, respectively. Summarized condensed financial information on a combined 100% basis related to Lennar Homebuilding’s unconsolidated entities that are accounted for by the equity method was as follows:Statements of Operations



	Three Months Ended					Six Months Ended
	May 31,					May 31,
(In thousands)	2017			2016		2017		2016
Revenues	$	132,587		208,636		178,723		308,362
Costs and expenses	190,845			201,370		269,911		298,570
Other income	6,117			—		6,117		—
Net earnings (loss) of unconsolidated entities	$	(52,141	)	7,266		(85,071	)	9,792
Lennar Homebuilding equity in loss from unconsolidated entities	$	(21,506	)	(9,633	)	(33,040	)	(6,633	)

The following table reflects Rialto's investments in funds that invest in and manage real estate related assets and other investments:



								May 31, 2017		May 31, 2017		November 30, 2016
(Dollars in thousands)	Inception Year	Equity Commitments		Equity Commitments Called		Commitment to Fund by the Company		Funds Contributed by the Company		Investment
Rialto Real Estate Fund, LP	2010	$	700,006	$	700,006	$	75,000	$	75,000	$	48,519	58,116
Rialto Real Estate Fund II, LP	2012	1,305,000		1,305,000		100,000		100,000		84,862		96,192
Rialto Mezzanine Partners Fund, LP	2013	300,000		300,000		33,799		33,799		21,188		23,643
Rialto Capital CMBS Funds	2014	119,174		119,174		52,474		52,474		50,948		50,519
Rialto Real Estate Fund III	2015	1,887,000		362,242		140,000		25,318		25,520		9,093
Rialto Credit Partnership, LP	2016	220,000		121,225		19,999		11,020		11,182		5,794
Other investments										2,082		2,384
										$	244,301	245,741

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

Balance Sheets



(In thousands)	May 31, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	77,047	230,229
Loans receivable	434,771		406,812
Real estate owned	360,337		439,191
Investment securities	1,543,517		1,379,155
Investments in partnerships	415,316		398,535
Other assets	190,885		29,036
	$	3,021,873	2,882,958
Liabilities and equity:
Accounts payable and other liabilities	$	44,989	36,131
Notes payable (1)	617,587		532,264
Equity	2,359,297		2,314,563
	$	3,021,873	2,882,958

(1)

Notes payable are net of debt issuance costs of $4.1 million and $2.9 million, as of May 31, 2017 and November 30, 2016, respectively. Statements of Operations



	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2017		2016	2017	2016
Revenues	$	61,030	51,240	118,186	95,536
Costs and expenses	29,000		20,704	57,001	41,603
Other income, net (1)	9,321		26,710	9,648	11,548
Net earnings of unconsolidated entities	$	41,351	57,246	70,833	65,481
Rialto equity in earnings from unconsolidated entities	$	5,730	6,864	6,452	8,361

(1)

Other income, net, included realized and unrealized gains (losses) on investments.

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



(In thousands)	May 31, 2017		November 30, 2016
Assets:
Cash and cash equivalents	$	44,765	43,658
Operating properties and equipment	2,658,080		2,210,627
Other assets	38,160		33,703
	$	2,741,005	2,287,988
Liabilities and equity:
Accounts payable and other liabilities	$	223,061	196,617
Notes payable (1)	727,070		577,085
Equity	1,790,874		1,514,286
	$	2,741,005	2,287,988


(1)	Notes payable are net of debt issuance costs of $17.1 million and $12.3 million, as of May 31, 2017 and November 30, 2016, respectively.

Statements of Operations



	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2017		2016	2017	2016
Revenues	$	13,975	9,649	25,592	17,963
Costs and expenses	24,477		14,058	46,823	25,730
Other income, net	28,190		30,272	78,729	70,394
Net earnings of unconsolidated entities	$	17,688	25,863	57,498	62,627
Lennar Multifamily equity in earnings from unconsolidated entities (1)	$	9,427	14,008	32,574	33,694

(1)

During three and six months ended May 31, 2017, the Lennar Multifamily segment sold one and three operating properties, respectively, through its unconsolidated entities resulting in the segment's $11.4 million and $37.4 million share of gains, respectively. During the three and six months ended May 31, 2016, the Lennar Multifamily segment sold one and two operating properties, respectively, through its unconsolidated entities resulting in the segment's $15.4 million and $35.8 million share of gains, respectively.The Company’s recorded investments in unconsolidated entities were as follows:



(In thousands)	May 31, 2017		November 30, 2016
Lennar Homebuilding	$	995,400	811,723
Rialto	$	244,301	245,741
Lennar Multifamily	$	377,265	318,559