UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _______ To _______

Commission File Number: 1-11749

Lennar Corporation

(Exact name of registrant as specified in its charter)

Delaware	95-4337490
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5505 Waterford District Drive, Miami, Florida 33126

(Address of principal executive offices) (Zip Code)

(305) 559-4000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $.10	LEN	New York Stock Exchange
Class B Common Stock, par value $.10	LEN.B	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	R	Accelerated filer	¨	Emerging growth company	¨
Non-accelerated filer	¨	Smaller reporting company	¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☑

Common stock outstanding as of May 31, 2024:

Class A 241,703,433

Class B 32,900,618

LENNAR CORPORATION
FORM 10-Q
For the period ended May 31, 2024
Part I	Financial Information	3
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of May 31, 2024 and November 30, 2023	3
	Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended May 31, 2024 and 2023	5
	Condensed Consolidated Statements of Cash Flows for the six months ended May 31, 2024 and 2023	6
	Notes to Condensed Consolidated Financial Statements	8
	Forward-Looking Statements	27
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4.	Controls and Procedures	45
Part II	Other Information	46
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3 - 4.	Not Applicable	46
Item 5.	Other Information	46
Item 6.	Exhibits	47
	Signatures	48

Part I. Financial Information

Item 1. Financial Statements

Lennar Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

	May 31,		November 30,
	2024 (1)		2023 (1)
ASSETS
Homebuilding:
Cash and cash equivalents	$	3,597,493	6,273,724
Restricted cash	11,572		13,481
Receivables, net	898,301		887,992
Inventories:
Finished homes and construction in progress	11,729,673		10,455,666
Land and land under development	4,418,285		4,904,541
Inventory owned	16,147,958		15,360,207
Consolidated inventory not owned	3,753,542		2,992,528
Inventory owned and consolidated inventory not owned	19,901,500		18,352,735
Deposits and pre-acquisition costs on real estate	2,754,819		2,002,154
Investments in unconsolidated entities	1,263,905		1,143,909
Goodwill	3,442,359		3,442,359
Other assets	1,540,507		1,512,038
	33,410,456		33,628,392
Financial Services	3,043,941		3,566,546
Multifamily	1,377,243		1,381,513
Lennar Other	836,030		657,852
Total assets	38,667,670		39,234,303

(1)Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations.

As of May 31, 2024, total assets include $3.0 billion related to consolidated VIEs of which $73.0 million is included in Homebuilding cash and cash equivalents, $5.9 million in Homebuilding receivables, net, $6.2 million in Homebuilding finished homes and construction in progress, $601.1 million in Homebuilding land and land under development, $75.5 million in Homebuilding deposits and pre-acquisition costs on real estate, $2.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $22.5 million in Homebuilding other assets and $33.6 million in Multifamily assets.

As of November 30, 2023, total assets include $1.9 billion related to consolidated VIEs of which $22.8 million is included in Homebuilding cash and cash equivalents, $1.8 million in Homebuilding receivables, net, $18.3 million in Homebuilding finished homes and construction in progress, $628.0 million in Homebuilding land and land under development, $55.0 million in Homebuilding deposits and pre-acquisition costs on real estate, $1.2 billion in Homebuilding consolidated inventory not owned, $0.3 million in Homebuilding investments in unconsolidated entities, $23.0 million in Homebuilding other assets and $32.6 million in Multifamily assets.

See accompanying notes to condensed consolidated financial statements.

3

Lennar Corporation and Subsidiaries

Condensed Consolidated Balance Sheets (Continued)

(In thousands, except share amounts)

(Unaudited)

	May 31,		November 30,
	2024 (2)		2023 (2)
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	1,727,358	1,631,401
Liabilities related to consolidated inventory not owned	3,227,478		2,540,894
Senior notes and other debt payable, net	2,241,507		2,816,482
Other liabilities	2,513,173		2,739,217
	9,709,516		9,727,994
Financial Services	1,583,363		2,447,039
Multifamily	246,776		278,177
Lennar Other	112,262		79,127
Total liabilities	11,651,917		12,532,337
Commitments and contingent liabilities (See Note 10)
Stockholders’ equity:
Preferred stock	—		—
Class A common stock of $0.10 par value; Authorized: May 31, 2024 and November 30, 2023 - 400,000,000 shares; Issued: May 31, 2024 - 259,957,819 shares and November 30, 2023 - 258,475,012 shares	25,996		25,848
Class B common stock of $0.10 par value; Authorized: May 31, 2024 and November 30, 2023 - 90,000,000 shares; Issued: May 31, 2024 - 36,601,215 shares and November 30, 2023 - 36,601,215 shares	3,660		3,660
Additional paid-in capital	5,674,733		5,570,009
Retained earnings	23,764,695		22,369,368
Treasury stock, at cost; May 31, 2024 - 18,254,386 shares of Class A common stock and 3,700,597 shares of Class B common stock; November 30, 2023 - 11,207,889 shares of Class A common stock and 2,920,200 shares of Class B common stock	(2,597,806)		(1,393,100)
Accumulated other comprehensive income	6,596		4,879
Total stockholders’ equity	26,877,874		26,580,664
Noncontrolling interests	137,879		121,302
Total equity	27,015,753		26,701,966
Total liabilities and equity	$	38,667,670	39,234,303

(2)As of May 31, 2024, total liabilities include $2.1 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $56.1 million is included in Homebuilding accounts payable, $2.0 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debt payable, $46.7 million in Homebuilding other liabilities, and $0.9 million in Multifamily liabilities.

As of November 30, 2023, total liabilities include $1.2 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $53.7 million is included in Homebuilding accounts payable, $1.1 billion in Homebuilding liabilities related to consolidated inventory not owned, $38.1 million in Homebuilding other liabilities, and $4.1 million in Multifamily liabilities.

See accompanying notes to condensed consolidated financial statements.

4

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended			Six Months Ended
	May 31,			May 31,
	2024		2023	2024	2023
Revenues:
Homebuilding	$	8,381,059	7,670,017	15,312,050	13,826,322
Financial Services	281,723		222,979	531,443	405,960
Multifamily	99,500		151,744	229,177	295,267
Lennar Other	3,310		411	5,852	8,031
Total revenues	8,765,592		8,045,151	16,078,522	14,535,580
Costs and expenses:
Homebuilding	7,106,455		6,438,957	13,083,991	11,713,671
Financial Services	134,711		110,380	253,135	214,624
Multifamily	102,205		154,354	234,872	303,310
Lennar Other	26,841		6,795	35,929	13,271
Corporate general and administrative	156,982		124,752	314,303	250,858
Charitable foundation contribution	19,690		17,074	36,488	30,733
Total costs and expenses	7,546,884		6,852,312	13,958,718	12,526,467
Equity in losses from unconsolidated entities	(4,309)		(49,755)	(34,854)	(80,942)
Other income (expense), net and other gains (losses)	68,172		(9,960)	133,544	13,360
Lennar Other unrealized gains (losses) from technology investments	(21,514)		25,497	(26,651)	1,543
Earnings before income taxes	1,261,057		1,158,621	2,191,843	1,943,074
Provision for income taxes	(300,471)		(280,879)	(511,336)	(466,024)
Net earnings (including net earnings attributable to noncontrolling interests)	960,586		877,742	1,680,507	1,477,050
Less: Net earnings attributable to noncontrolling interests	6,275		6,048	6,862	8,822
Net earnings attributable to Lennar	$	954,311	871,694	1,673,645	1,468,228
Other comprehensive income, net of tax:
Net unrealized gains on securities available-for-sale	$	1,355	573	1,717	1,424
Total other comprehensive income, net of tax	$	1,355	573	1,717	1,424
Total comprehensive income attributable to Lennar	$	955,666	872,267	1,675,362	1,469,652
Total comprehensive income attributable to noncontrolling interests	$	6,275	6,048	6,862	8,822
Basic and diluted earnings per share	$	3.45	3.01	6.01	5.07

    

See accompanying notes to condensed consolidated financial statements.

5

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Six Months Ended
	May 31,
	2024		2023
Cash flows from operating activities:
Net earnings (including net earnings attributable to noncontrolling interests)	$	1,680,507	1,477,050
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	55,746		44,039
Amortization of discount/premium and accretion on debt, net	336		(1,691)
Equity in loss from unconsolidated entities	34,854		80,942
Distributions of earnings from unconsolidated entities	20,894		16,657
Share-based compensation expense	122,186		126,731
Deferred income tax expense (benefit)	36,848		(131,520)
Gains on redemption/repurchases of senior notes	(825)		(724)
Loans held-for-sale unrealized losses	28,865		23,563
Lennar Other unrealized (gains) losses from technology investments and other (gains) losses	6,515		1,000
Gains on sale of other assets	(13,585)		(3,726)
Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets	26,526		85,117
Changes in assets and liabilities:
Decrease in receivables	30,956		435,880
(Increase) decrease in inventories, excluding valuation adjustments	(631,180)		89,098
Increase in deposits and pre-acquisition costs on real estate	(755,232)		(78,357)
Decrease (increase) in other assets	11,393		(111,955)
Decrease in loans held-for-sale	335,788		577,891
Decrease in accounts payable and other liabilities	(380,966)		(991,319)
Net cash provided by operating activities	609,626		1,638,676
Cash flows from investing activities:
Net additions of operating properties and equipment	(111,733)		(31,268)
Proceeds from the sale of other assets	18,709		7,762
Investments in and contributions to unconsolidated entities	(247,785)		(108,306)
Distributions of capital from unconsolidated entities	61,807		46,499
Decrease in Financial Services loans held-for-investment	2,960		8,882
Purchases of investment securities	(2,063)		(7,000)
Proceeds from maturities/sales of investment securities	3,321		2,859
Net cash used in investing activities	$	(274,784)	(80,572)

See accompanying notes to condensed consolidated financial statements.

6

Lennar Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Continued)

(In thousands)

(Unaudited)

	Six Months Ended
	May 31,
	2024		2023
Cash flows from financing activities:
Net repayments under warehouse facilities	$	(753,703)	(978,053)
Redemption/repurchases of senior notes	(553,865)		(157,764)
Principal payments on notes payable and other borrowings	(40,672)		(34,515)
Proceeds from liabilities related to consolidated inventory not owned	105,635		186,889
Proceeds from other borrowings	6,231		—
Payments related to liabilities related to consolidated inventory not owned	(250,232)		(372,687)
Payments related to other liabilities, net	(2,842)		(2,621)
Receipts related to noncontrolling interests	14,722		4,918
Payments related to noncontrolling interests	(26,646)		(20,623)
Common stock:
Repurchases	(1,204,706)		(465,297)
Dividends	(278,318)		(218,277)
Net cash used in financing activities	(2,984,396)		(2,058,030)
Net decrease in cash and cash equivalents and restricted cash	(2,649,554)		(499,926)
Cash and cash equivalents and restricted cash at beginning of period	6,570,938		4,815,770
Cash and cash equivalents and restricted cash at end of period	$	3,921,384	4,315,844
Summary of cash and cash equivalents and restricted cash:
Homebuilding	$	3,597,493	4,004,679
Financial Services	245,784		259,738
Multifamily	11,555		18,539
Lennar Other	17,184		4,775
Homebuilding restricted cash	11,572		19,000
Financial Services restricted cash	37,796		9,113
	$	3,921,384	4,315,844
Supplemental disclosures of non-cash investing and financing activities:
Homebuilding:
Purchases of inventories and other assets financed by sellers	$	9,245	—

See accompanying notes to condensed consolidated financial statements.

7

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(1)Basis of Presentation

Basis of Consolidation

The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2023, as amended ("Form 10-K"). The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made.

Seasonality

The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The condensed consolidated statements of operations for the three and six months ended May 31, 2024 are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Homebuilding cash and cash equivalents as of May 31, 2024 and November 30, 2023 included $482.0 million and $594.8 million, respectively, of cash held in escrow for approximately two days.

Share-based Payments

During both the three months ended May 31, 2024 and 2023, the Company granted employees an immaterial number of nonvested shares. During the six months ended May 31, 2024 and 2023, the Company granted employees 1.3 million and 2.0 million of nonvested shares, respectively.

Recently Adopted Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on its condensed consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company is currently reviewing the impact that the adoption of ASU 2023-07 may have on its condensed consolidated financial statements and disclosures.

Reclassifications

Certain prior year segment information in the condensed consolidated financial statements have been reclassified to conform with the 2024 presentation. This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenue or net income in the condensed consolidated financial statements.

8

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(2) Operating and Reporting Segments

The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting, and determined that the following are its operating and reportable segments:

Homebuilding segments: (1) East (2) Central (3) Texas (4) West

(5) Financial Services

(6) Multifamily

(7) Lennar Other

The assets and liabilities related to the Company’s segments were as follows:

(In thousands)	May 31, 2024
Assets:	Homebuilding		Financial Services	Multifamily	Lennar Other	Total
Cash and cash equivalents	$	3,597,493	245,784	11,555	17,184	3,872,016
Restricted cash	11,572		37,796	—	—	49,368
Receivables, net (1)	898,301		567,748	86,293	—	1,552,342
Inventory owned and consolidated inventory not owned	19,901,500		—	608,214	—	20,509,714
Deposits and pre-acquisition costs on real estate	2,754,819		—	29,802	—	2,784,621
Investments in unconsolidated entities	1,263,905		—	561,892	350,574	2,176,371
Loans held-for-sale (2)	—		1,721,911	—	—	1,721,911
Investments in equity securities (3)	—		—	—	297,948	297,948
Investments available-for-sale (4)	—		—	—	39,669	39,669
Loans held-for-investment, net	—		54,355	—	—	54,355
Investments held-to-maturity	—		138,425	—	—	138,425
Goodwill	3,442,359		189,699	—	—	3,632,058
Other assets	1,540,507		88,223	79,487	130,655	1,838,872
Total assets	$	33,410,456	3,043,941	1,377,243	836,030	38,667,670
Liabilities:
Notes and other debt payable, net	$	2,241,507	1,410,102	—	—	3,651,609
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities	7,468,009		173,261	246,776	112,262	8,000,308
Total liabilities	$	9,709,516	1,583,363	246,776	112,262	11,651,917

9

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(In thousands)	November 30, 2023
Assets:	Homebuilding		Financial Services	Multifamily	Lennar Other	Total
Cash and cash equivalents	$	6,273,724	159,491	39,334	1,948	6,474,497
Restricted cash	13,481		82,960	—	—	96,441
Receivables, net (1)	887,992		716,071	92,142	—	1,696,205
Inventory owned and consolidated inventory not owned	18,352,735		—	544,935	—	18,897,670
Deposits and pre-acquisition costs on real estate	2,002,154		—	32,063	—	2,034,217
Investments in unconsolidated entities	1,143,909		—	599,852	276,244	2,020,005
Loans held-for-sale (2)	—		2,086,809	—	—	2,086,809
Investments in equity securities (3)	—		—	—	297,243	297,243
Investments available-for-sale (4)	—		—	—	37,953	37,953
Loans held-for-investment, net	—		55,463	—	—	55,463
Investments held-to-maturity	—		140,676	—	—	140,676
Goodwill	3,442,359		189,699	—	—	3,632,058
Other assets	1,512,038		135,377	73,187	44,464	1,765,066
Total assets	$	33,628,392	3,566,546	1,381,513	657,852	39,234,303
Liabilities:
Notes and other debt payable, net	$	2,816,482	2,163,805	3,741	—	4,984,028
Accounts payable, liabilities related to consolidated inventory not owned and other liabilities	6,911,512		283,234	274,436	79,127	7,548,309
Total liabilities	$	9,727,994	2,447,039	278,177	79,127	12,532,337

(1)Receivables, net for Financial Services primarily related to loans sold to investors for which the Company had not yet been paid as of May 31, 2024 and November 30, 2023, respectively.

(2)Loans held-for-sale related to unsold residential and commercial loans carried at fair value.

(3)Investments in equity securities include investments of $145.0 million and $121.0 million without readily available fair values as of May 31, 2024 and November 30, 2023, respectively.

(4)Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheet.

Financial information relating to the Company’s segments was as follows:

	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2024		2023	2024	2023
Revenues:
Homebuilding	$	8,381,059	7,670,017	15,312,050	13,826,322
Financial Services	281,723		222,979	531,443	405,960
Multifamily	99,500		151,744	229,177	295,267
Lennar Other	3,310		411	5,852	8,031
	$	8,765,592	8,045,151	16,078,522	14,535,580
Earnings (loss) before income taxes:
Homebuilding	$	1,340,155	1,214,409	2,368,951	2,121,248
Financial Services	147,012		112,599	278,308	191,336
Multifamily	(20,474)		(8,162)	(36,113)	(29,763)
Lennar Other	(28,964)		(18,399)	(68,512)	(58,156)
Corporate and Unallocated (1)	(176,672)		(141,826)	(350,791)	(281,591)
	$	1,261,057	1,158,621	2,191,843	1,943,074

(1)Corporate and unallocated consists primarily of corporate general and administrative expenses and charitable foundation contributions.

10

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Homebuilding Segments

Information about homebuilding activities in states which are not economically similar to other states in the same geographic areas is grouped under “Homebuilding Other,” which is not considered a reportable segment.

Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (loss) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment. Homebuilding Other also includes management of a fund that acquires single-family homes and holds them as rental properties.

The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in:

East: Alabama, Florida, New Jersey and Pennsylvania

Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee, and Virginia

Texas: Texas

West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington

Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”)

The assets related to the Company’s homebuilding segments were as follows:

	May 31,		November 30,
	2024		2023
(In thousands)
East	$	6,934,559	6,563,568
Central	5,205,747		4,511,496
Texas	3,842,898		3,337,280
West	11,970,399		11,298,812
Other	1,543,449		1,511,541
Corporate and Unallocated	3,913,404		6,405,695
Total Homebuilding	$	33,410,456	33,628,392

Financial information relating to the Company’s homebuilding segments was as follows:

	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2024		2023	2024	2023
Revenues
East	$	2,202,245	2,119,297	4,125,041	3,817,140
Central	1,707,444		1,616,392	3,103,899	2,842,533
Texas	1,196,425		1,141,612	2,268,211	2,163,664
West	3,265,467		2,781,097	5,795,529	4,986,158
Other	9,478		11,619	19,370	16,827
	$	8,381,059	7,670,017	15,312,050	13,826,322
Operating earnings (loss)
East	$	425,650	473,467	802,531	871,899
Central	237,870		247,550	399,486	403,836
Texas	184,644		183,061	353,157	308,380
West	478,937		355,472	787,724	585,972
Other	13,054		(45,141)	26,053	(48,839)
	$	1,340,155	1,214,409	2,368,951	2,121,248

11

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Financial Services

Operations of the Financial Services segment include mortgage financing, title and closing services primarily for buyers of the Company’s homes. They also include originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and sales of property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations.

At May 31, 2024, the Financial Services segment had warehouse facilities which were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:

	Maximum Aggregate Commitment
(In thousands)	Committed Amount		Uncommitted Amount	Total
Residential facilities maturing:
June 2024 (1)	$	500,000	—	500,000
June 2024 (2)	100,000		100,000	200,000
July 2024	505,000		—	505,000
September 2024	100,000		100,000	200,000
April 2025	250,000		250,000	500,000
Total residential facilities	$	1,455,000	450,000	1,905,000
LMF commercial facilities maturing:
December 2024	200,000		—	200,000
January 2025	100,000		—	100,000
Total LMF commercial facilities	$	300,000	—	300,000
Total				$	2,205,000

(1)Subsequent to May 31, 2024, the maturity date was extended to July 2024.

(2)Subsequent to May 31, 2024, the maximum aggregate committed and uncommitted commitment was reduced to $75 million each until maturity in August 2024.

The Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80% interests in the originated commercial loans financed.

Borrowings and collateral under the facilities were as follows:

(In thousands)	May 31, 2024		November 30, 2023
Borrowings under the residential facilities	$	1,233,015	2,020,187
Collateral under the residential facilities	1,280,929		2,097,020
Borrowings under the LMF Commercial facilities	48,057		12,525

If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.

Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements. Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage industry and the uncertainty regarding the ultimate resolution of these

12

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred. The provision for loan losses was immaterial for both the three and six months ended May 31, 2024 and 2023. Loan origination liabilities were $18.3 million and $17.6 million as of May 31, 2024 and November 30, 2023, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets.

LMF Commercial - loans held-for-sale

LMF Commercial originated commercial loans as follows:

	Three Months Ended			Six Months Ended
	May 31,			May 31,
(Dollars in thousands)	2024		2023	2024	2023
Originations (1)	$	71,510	84,590	212,335	164,070
Sold	129,335		88,102	156,285	165,302
Securitizations	3		2	5	3

(1)During both the three and six months ended May 31, 2024 and 2023, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.

Investments held-to-maturity

At May 31, 2024 and November 30, 2023, the Financial Services segment held commercial mortgage-backed securities (“CMBS”). These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the three or six months ended May 31, 2024 and 2023. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.

Details related to Financial Services' CMBS were as follows:

(Dollars in thousands)	May 31, 2024		November 30, 2023
Carrying value	$	138,425	140,676
Outstanding debt, net of debt issuance costs	129,029		131,093
Incurred interest rate	3.4%		3.4%

	May 31, 2024
Discount rates at purchase	6%	—	84%
Coupon rates	2.0%	—	5.3%
Distribution dates	October 2027	—	December 2028
Stated maturity dates	October 2050	—	December 2051

Multifamily

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

The Multifamily Segment (i) manages, and owns interests in, funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) manages, and owns interests in, joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. The multifamily business is a vertically integrated platform with capabilities spanning development, construction, property management, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and management and promote fees generated from joint ventures less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily Segment also include equity in earnings (loss) from unconsolidated entities other gains (which includes sales of buildings and investments).

13

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Lennar Other

Lennar Other primarily includes strategic investments in technology companies, primarily managed by the Company's LENX subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management (“Rialto”) asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments, along with equity in earnings (loss) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment.

The Company has investments in Blend Labs, Inc. (“Blend Labs”), Hippo Holdings, Inc. (“Hippo”), Opendoor Technologies, Inc. (“Opendoor”), SmartRent, Inc. (“SmartRent”), Sonder Holdings, Inc. (“Sonder”) and Sunnova Energy International, Inc. (“Sunnova”), which are held at market and the carrying value of which will therefore change depending on the value of the Company's shareholdings in those entities on the last day of each quarter. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on the Company's technology investments:

	Three Months Ended			Six Months Ended
	May 31,			May 31,
(In thousands)	2024		2023	2024	2023
Blend Labs (BLND)	$	715	(1,332)	3,651	(746)
Hippo (HIPO)	10,737		(4,399)	27,186	2,233
Opendoor (OPEN)	(16,907)		22,512	(15,592)	14,821
SmartRent (SMRT)	(4,609)		8,621	(6,572)	9,926
Sonder (SOND)	(40)		(138)	11	(458)
Sunnova (NOVA)	(11,410)		233	(35,335)	(24,233)
Lennar Other unrealized gains (losses) from technology investments	$	(21,514)	25,497	(26,651)	1,543

Doma Holdings, Inc. (“Doma”), which went public during the year ended November 30, 2021, is an investment that was accounted for under the equity method due to the Company's significant ownership interest of 25% of Doma which allowed the Company to exercise significant influence. As of May 31, 2024, the Company’s carrying value in Doma was zero as a result of allocated losses from Doma.

(3)Investments in Unconsolidated Entities

Homebuilding Unconsolidated Entities

The investments in the Company's Homebuilding unconsolidated entities were as follows:

(In thousands)	May 31, 2024		November 30, 2023
Investments in unconsolidated entities (1) (2)	$	1,263,905	1,143,909
Underlying equity in unconsolidated entities' net assets (1)	1,573,738		1,436,239

(1)The basis difference was primarily as a result of the Company contributing its investment in three strategic joint ventures with a higher fair value than book value for an investment in FivePoint.

(2)Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40% ownership of FivePoint. As of May 31, 2024 and November 30, 2023, the carrying amount of the Company's investment was $448.1 million and $422.2 million, respectively.

As of May 31, 2024 and November 30, 2023, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $279.3 million and $316.5 million, respectively.

The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments. While the Company sometimes guarantees debt of unconsolidated entities, in most instances the Company’s partners have also guaranteed that debt and are required to contribute their shares of any payments. In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it.

As of both May 31, 2024 and November 30, 2023, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were not material. The Company believes that as of May 31, 2024, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under a guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture. In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 7 of the Notes to Condensed Consolidated Financial Statements). The details related to these are unchanged from the disclosure in the

14

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023.

In 2021, the Company formed the Upward America Venture LP (“Upward America”), and is managing and participating in Upward America. Upward America is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them. Upward America is expected to raise equity commitments totaling $1.0 billion. The commitments are primarily from institutional investors, including $78 million committed by Lennar. As of May 31, 2024 and November 30, 2023, the carrying amount of the Company's investment in Upward America was $16.4 million and $14.8 million, respectively.

Multifamily Unconsolidated Entities

The unconsolidated joint ventures in which the Multifamily segment has investments usually finance their activities with a combination of partner equity and debt financing. In connection with many of the bank loans to the Multifamily unconsolidated joint ventures, the Company (or entities related to them) have been required to give guarantees of completion and cost over-runs to the lenders and partners. The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2023. As of both May 31, 2024 and November 30, 2023, the fair value of the completion guarantees was immaterial. As of May 31, 2024 and November 30, 2023, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $834.2 million and $1.4 billion, respectively.

In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function. Each Multifamily real estate investment trust, JV and fund has unilateral decision-making rights related to development and other sales activity through its executive committee or asset management committee. The Multifamily segment also provides general contractor services for construction of some of the rental properties owned by unconsolidated entities in which the Company has investments. In some situations, the Multifamily segment sells land to various joint ventures and funds. The details of the activity were as follows:

	Three Months Ended			Six Months Ended
(In thousands)	May 31, 2024		May 31, 2023	May 31, 2024	May 31, 2023
General contractor services, net of deferrals	$	84,434	128,371	186,070	253,773
General contractor costs	79,995		122,064	175,684	242,797
Management fee income, net of deferrals	13,669		17,494	29,710	35,615

The Multifamily segment includes managing and investing in Multifamily Venture Fund I (“LMV I”), Multifamily Venture Fund II LP (“LMV II”) and Canada Pension Plan Investments Fund (the “CPPIB Fund”), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets. The Multifamily segment completed the closing of the CPPIB Fund. The Multifamily segment expects the CPPIB Fund to have almost $1.0 billion in equity and Lennar's ownership percentage in the CPPIB Fund is 4%. As of May 31, 2024, the Company had a $24.6 million investment in the CPPIB Fund. Additional dollars will be committed as opportunities are identified by the CPPIB Fund.

Details of LMV I and LMV II as of and during the six months ended May 31, 2024 are included below:

	May 31, 2024
(In thousands)	LMV I		LMV II
Lennar's carrying value of investments	$	162,904	255,908
Equity commitments	2,204,016		1,257,700
Equity commitments called	2,154,328		1,218,619
Lennar's equity commitments	504,016		381,000
Lennar's equity commitments called	500,381		368,170
Lennar's remaining commitments (1)	3,635		12,830
Distributions to Lennar during the six months ended May 31, 2024	7,245		208

(1)While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.

Currently, the LMV I partners have decided to liquidate and sell substantially all of the individual project rental operations of LMV I in the second half of fiscal 2024. Some of those assets were sold in June 2024. As of May 31, 2024, the Company's net investment in LMV I was $162.9 million.

Other Unconsolidated Entities

Lennar Other's unconsolidated entities include fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds. The

15

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Company's investment in the Rialto funds totaled $146.9 million and $148.7 million as of May 31, 2024 and November 30, 2023, respectively. In addition, the Company is entitled to a portion of the carried interest distributions by those funds. The Company also had strategic technology investments in unconsolidated entities and investment funds with a carrying value of $203.7 million and $127.5 million, as of May 31, 2024 and November 30, 2023, respectively. In addition, during both the three and six months ended May 31, 2024, there was a $46.5 million one-time realized gain in Lennar Other on the sale of a technology investment that was included in other income (expense), net and other gains (losses) on the Company’s condensed consolidated statements of operations and comprehensive income .

(4)Stockholders' Equity

The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three and six months ended May 31, 2024 and 2023:

	Three Months Ended May 31, 2024
(In thousands)	Total Equity		Class A Common Stock	Class B Common Stock	Additional Paid - in Capital	Treasury Stock	Accumulated Other Comprehensive Income	Retained Earnings	Noncontrolling Interests
Balance at February 29, 2024	$	26,777,930	25,983	3,660	5,651,836	(1,988,200)	5,241	22,949,315	130,095
Net earnings (including net earnings attributable to noncontrolling interests)	960,586		—	—	—	—	—	954,311	6,275
Employee stock and directors plans	(1,046)		13	—	1,277	(2,336)	—	—	—
Purchases of treasury stock	(607,270)		—	—	—	(607,270)	—	—	—
Amortization of restricted stock	34,506		—	—	34,506	—	—	—	—
Cash dividends	(138,931)		—	—	—	—	—	(138,931)	—
Receipts related to noncontrolling interests	8,926		—	—	—	—	—	—	8,926
Payments related to noncontrolling interests	(24,667)		—	—	—	—	—	—	(24,667)
Non-cash purchase or activity of noncontrolling interests, net	4,364		—	—	(12,886)	—	—	—	17,250
Total other comprehensive income, net of tax	1,355		—	—	—	—	1,355	—	—
Balance at May 31, 2024	$	27,015,753	25,996	3,660	5,674,733	(2,597,806)	6,596	23,764,695	137,879

	Three Months Ended May 31, 2023
(In thousands)	Total Equity		Class A Common Stock	Class B Common Stock	Additional Paid - in Capital	Treasury Stock	Accumulated Other Comprehensive Income	Retained Earnings	Noncontrolling Interests
Balance at February 28, 2023	$	24,555,287	25,834	3,660	5,503,789	(468,347)	3,259	19,350,060	137,032
Net earnings (including net earnings attributable to noncontrolling interests)	877,742		—	—	—	—	—	871,694	6,048
Employee stock and directors plans	4,229		9	—	1,631	2,589	—	—	—
Purchases of treasury stock	(209,928)		—	—	—	(209,928)	—	—	—
Amortization of restricted stock	40,173		—	—	40,173	—	—	—	—
Cash dividends	(110,386)		—	—	—	—	—	(110,386)	—
Receipts related to noncontrolling interests	2,421		—	—	—	—	—	—	2,421
Non-cash purchase or activity of noncontrolling interests, net	1,008		—	—	535	—	—	—	473
Total other comprehensive income, net of tax	573		—	—	—	—	573	—	—
Balance at May 31, 2023	$	25,161,119	25,843	3,660	5,546,128	(675,686)	3,832	20,111,368	145,974

16

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

	Six Months Ended May 31, 2024
(In thousands)	Total Equity		Class A Common Stock	Class B Common Stock	Additional Paid - in Capital	Treasury Stock	Accumulated Other Comprehensive Income	Retained Earnings	Noncontrolling Interests
Balance at November 30, 2023	$	26,701,966	25,848	3,660	5,570,009	(1,393,100)	4,879	22,369,368	121,302
Net earnings (including net earnings attributable to noncontrolling interests)	1,680,507		—	—	—	—	—	1,673,645	6,862
Employee stock and directors plans	(84,519)		148	—	1,212	(85,879)	—	—	—
Purchases of treasury stock	(1,118,827)		—	—	—	(1,118,827)	—	—	—
Amortization of restricted stock	122,186		—	—	122,186	—