filings.toolsItem 8. Financial Statements and Supplementary Data.
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Item 8. Financial Statements and Supplementary Data.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of Lennar Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Lennar Corporation and subsidiaries (the "Company") as of November 30, 2025 and 2024, the related consolidated statements of operations and comprehensive income (loss), equity, and cash flows, for each of the three years in the period ended November 30, 2025, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of November 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended November 30, 2025, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of November 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated January 28, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Spin-off of Millrose Properties Inc. (Note 2 and 9)
Critical Audit Matter Description
As described in Note 2 and 9 to the financial statements, on February 7, 2025, the Company completed the spin-off of its Millrose Properties Inc. (“Millrose”) business through a pro rata distribution of 80% of the outstanding shares of Millrose to Company stockholders. The Company subsequently disposed of its remaining 20% interest in Millrose in November 2025.
As a result of this transaction, the Company performed a reassessment of control over Millrose and determined that Millrose met the definition of a variable interest entity (VIE) in which the Company held a variable interest. The assessment further showed that the Company was not the primary beneficiary and should not consolidate Millrose because the Company does not have the power, either explicitly or implicitly through voting rights or otherwise, to direct the activities that most significantly impact the economic performance of Millrose. Accordingly, the Company deconsolidated the Millrose net assets from the Company's financial statements on the date of the spin-off transaction.
We identified the determination of the primary beneficiary under the VIE model for the Company's post spin-off contractual arrangements in Millrose as a critical audit matter. Evaluating whether the Company had the substantive power to direct the activities that most significantly impacted the economic performance of Millrose required a high degree of complex auditor judgment.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the accounting determination for the spin-off included the following, among others:
-
Evaluated the design and tested the operating effectiveness of certain internal controls related to the Company's VIE model, including the Company's control related to its determination of the primary beneficiary.
-
Inquired of management to obtain an understanding of and evaluate the business purpose of the transaction and the activities that most significantly impact the economic performance of the entity.
-
Evaluated management's determination of how decisions about the most significant activities are made and the party or parties that make them, including whether the Company's economic interest in Millrose as a VIE provides actual or effective power beyond its stated power.
-
With the assistance of professionals with specialized knowledge related to the accounting for VIE's, we evaluated the governing documents of Millrose, including the Master Program Agreement, Master Option Agreement, and other publicly disclosed information to determine whether the Company held any substantive participating rights or had substantive power to direct the activities that most significantly impact Millrose’s economic performance.
/s/ Deloitte & Touche LLP
Miami, Florida
January 28, 2026
We have served as the Company's auditor since 1994.
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
November 30, 2025 and 2024
(Dollars in thousands)
| 2025 (1) | 2024 (1) | ||||||||||
| ASSETS | |||||||||||
| Homebuilding: | |||||||||||
| Cash and cash equivalents | $ | 3,441,324 | 4,662,643 | ||||||||
| Restricted cash | 25,930 | 11,799 | |||||||||
| Receivables, net | 1,002,629 | 1,053,211 | |||||||||
| Inventories: | |||||||||||
| Finished homes and construction in progress | 8,822,271 | 10,884,861 | |||||||||
| Land and land under development | 1,098,961 | 4,750,025 | |||||||||
| Inventory owned | 9,921,232 | 15,634,886 | |||||||||
| Consolidated inventory not owned | 1,696,401 | 4,084,665 | |||||||||
| Inventory owned and consolidated inventory not owned | 11,617,633 | 19,719,551 | |||||||||
| Deposits and pre-acquisition costs on real estate | 6,383,633 | 3,625,372 | |||||||||
| Investments in unconsolidated entities | 1,545,370 | 1,344,836 | |||||||||
| Goodwill | 3,442,359 | 3,442,359 | |||||||||
| Other assets | 1,794,378 | 1,734,698 | |||||||||
| 29,253,256 | 35,594,469 | ||||||||||
| Financial Services | 3,377,413 | 3,516,550 | |||||||||
| Multifamily | 902,136 | 1,306,818 | |||||||||
| Lennar Other | 897,632 | 894,944 | |||||||||
| Total assets | $ | 34,430,437 | 41,312,781 |
(1)Under certain provisions of Accounting Standards Codification ("ASC") Topic 810, Consolidations, ("ASC 810") the Company is required to separately disclose on its consolidated balance sheets the assets of consolidated variable interest entities ("VIEs") that are owned by the consolidated VIEs and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligation.
As of November 30, 2025, total assets include $1.5 billion related to consolidated VIEs of which $61.1 million is included in Homebuilding cash and cash equivalents, $2.0 million in Homebuilding receivables, net, $45.6 million in Homebuilding finished homes and construction in progress, $300.3 million in Homebuilding land and land under development, $984.4 million in Homebuilding consolidated inventory not owned, $88.3 million in Homebuilding deposits and pre-acquisition costs on real estate, $0.3 million in Homebuilding investments in unconsolidated entities, $8.9 million in Homebuilding other assets and $25.0 million in Multifamily assets.
As of November 30, 2024, total assets include $3.7 billion related to consolidated VIEs of which $67.0 million is included in Homebuilding cash and cash equivalents, $6.0 million in Homebuilding receivables, net, $9.7 million in Homebuilding finished homes and construction in progress, $602.9 million in Homebuilding land and land under development, $2.8 billion in Homebuilding consolidated inventory not owned, $71.8 million in Homebuilding deposits and pre-acquisition costs on real estate, $0.3 million in Homebuilding investments in unconsolidated entities, $42.3 million in Homebuilding other assets and $33.9 million in Multifamily assets.
See accompanying notes to consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
November 30, 2025 and 2024
(Dollars in thousands except share and per share amounts)
| 2025 (2) | 2024 (2) | ||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Homebuilding: | |||||||||||
| Accounts payable | $ | 1,812,484 | 1,839,440 | ||||||||
| Liabilities related to consolidated inventory not owned | 1,476,376 | 3,563,934 | |||||||||
| Senior notes and other debts payable, net | 4,084,686 | 2,258,283 | |||||||||
| Other liabilities | 2,691,876 | 3,201,552 | |||||||||
| 10,065,422 | 10,863,209 | ||||||||||
| Financial Services | 2,010,598 | 2,140,708 | |||||||||
| Multifamily | 113,361 | 181,883 | |||||||||
| Lennar Other | 100,447 | 105,756 | |||||||||
| Total liabilities | 12,289,828 | 13,291,556 | |||||||||
| Commitments and contingent liabilities (See Note 10) | |||||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock | — | — | |||||||||
| Class A common stock of $0.10 par value per share; Authorized: 2025 and 2024 - 400,000,000 shares; Issued: 2025 - 261,579,253 shares; 2024 - 259,979,453 shares | 26,158 | 25,998 | |||||||||
| Class B common stock of $0.10 par value per share; Authorized: 2025 and 2024 - 90,000,000 shares; Issued: 2025 - 36,601,215 shares; 2024 - 36,601,215 shares | 3,660 | 3,660 | |||||||||
| Additional paid-in capital | 5,909,726 | 5,729,434 | |||||||||
| Retained earnings | 22,471,471 | 25,753,078 | |||||||||
| Treasury stock, at cost; 2025 - 45,804,348 shares of Class A common stock and 5,384,202 shares of Class B common stock; 2024 - 23,814,148 shares of Class A common stock and 4,532,701 shares of Class B common stock | (6,457,609) | (3,649,564) | |||||||||
| Accumulated other comprehensive income | 6,011 | 7,529 | |||||||||
| Total stockholders’ equity | 21,959,417 | 27,870,135 | |||||||||
| Noncontrolling interests | 181,192 | 151,090 | |||||||||
| Total equity | 22,140,609 | 28,021,225 | |||||||||
| Total liabilities and equity | $ | 34,430,437 | 41,312,781 |
(2)As of November 30, 2025, total liabilities include $962.4 million related to consolidated VIEs as to which there was no recourse against the Company, of which $23.8 million is included in Homebuilding accounts payable, $930.1 million in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, net, $1.5 million in Homebuilding other liabilities and $1.0 million in Multifamily liabilities.
As of November 30, 2024, total liabilities include $2.7 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $67.3 million is included in Homebuilding accounts payable, $2.6 billion in Homebuilding liabilities related to consolidated inventory not owned, $6.0 million in Homebuilding senior notes and other debts payable, net, $45.8 million in Homebuilding other liabilities and $1.0 million in Multifamily liabilities.
See accompanying notes to consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Years Ended November 30, 2025, 2024 and 2023
(Dollars in thousands, except per share amounts)
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues: | |||||||||||||||||
| Homebuilding | $ | 32,266,680 | 33,906,426 | 32,660,987 | |||||||||||||
| Financial Services | 1,198,197 | 1,109,263 | 976,859 | ||||||||||||||
| Multifamily | 680,627 | 411,537 | 573,485 | ||||||||||||||
| Lennar Other | 41,430 | 14,226 | 22,035 | ||||||||||||||
| Total revenues | 34,186,934 | 35,441,452 | 34,233,366 | ||||||||||||||
| Costs and expenses: | |||||||||||||||||
| Homebuilding | 29,284,622 | 28,809,464 | 27,223,645 | ||||||||||||||
| Financial Services | 585,731 | 532,079 | 467,398 | ||||||||||||||
| Multifamily | 750,011 | 521,455 | 573,658 | ||||||||||||||
| Lennar Other | 179,445 | 79,495 | 27,681 | ||||||||||||||
| Corporate general and administrative | 636,718 | 648,986 | 501,338 | ||||||||||||||
| Charitable foundation contribution | 82,583 | 80,210 | 73,087 | ||||||||||||||
| Total costs and expenses | 31,519,110 | 30,671,689 | 28,866,807 | ||||||||||||||
| Equity in earnings (losses) from unconsolidated entities | 78,225 | 164,099 | (144,610) | ||||||||||||||
| Other income (expense), net and other gains (losses), net | (62,352) | 225,866 | 30,517 | ||||||||||||||
| Lennar Other gains (losses) from technology investments | 130,166 | 25,180 | (50,162) | ||||||||||||||
| Earnings before income taxes | 2,813,863 | 5,184,908 | 5,202,304 | ||||||||||||||
| Provision for income taxes | (705,563) | (1,217,253) | (1,241,013) | ||||||||||||||
| Net earnings (including net earnings attributable to noncontrolling interests) | 2,108,300 | 3,967,655 | 3,961,291 | ||||||||||||||
| Less: Net earnings attributable to noncontrolling interests | 30,121 | 35,122 | 22,780 | ||||||||||||||
| Net earnings attributable to Lennar | 2,078,179 | 3,932,533 | 3,938,511 | ||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||
| Net unrealized gains (losses) on securities available-for-sale | $ | (1,518) | 2,650 | 2,471 | |||||||||||||
| Total other comprehensive income (loss), net of tax | $ | (1,518) | 2,650 | 2,471 | |||||||||||||
| Total comprehensive income attributable to Lennar | $ | 2,076,661 | 3,935,183 | 3,940,982 | |||||||||||||
| Total comprehensive income attributable to noncontrolling interests | $ | 30,121 | 35,122 | 22,780 | |||||||||||||
| Basic and diluted earnings per share | $ | 7.98 | 14.31 | 13.73 | |||||||||||||
See accompanying notes to consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
Years Ended November 30, 2025, 2024 and 2023
(Dollars in thousands, except per share amounts)
| 2025 | 2024 | 2023 | |||||||||||||||
| Class A common stock: | |||||||||||||||||
| Beginning balance | $ | 25,998 | 25,848 | 25,608 | |||||||||||||
| Employee stock and director plans | 160 | 150 | 240 | ||||||||||||||
| Balance at November 30, | 26,158 | 25,998 | 25,848 | ||||||||||||||
| Class B common stock: | |||||||||||||||||
| Beginning balance | 3,660 | 3,660 | 3,660 | ||||||||||||||
| Balance at November 30, | 3,660 | 3,660 | 3,660 | ||||||||||||||
| Additional paid-in capital: | |||||||||||||||||
| Beginning balance | 5,729,434 | 5,570,009 | 5,417,796 | ||||||||||||||
| Employee stock and director plans | 17,747 | 1,353 | 1,089 | ||||||||||||||
| Amortization of restricted stock | 163,494 | 176,676 | 160,720 | ||||||||||||||
| Equity adjustment related to noncontrolling interests | (949) | (18,604) | (9,596) | ||||||||||||||
| Balance at November 30, | 5,909,726 | 5,729,434 | 5,570,009 | ||||||||||||||
| Retained earnings: | |||||||||||||||||
| Beginning balance | 25,753,078 | 22,369,368 | 18,861,417 | ||||||||||||||
| Net earnings attributable to Lennar | 2,078,179 | 3,932,533 | 3,938,511 | ||||||||||||||
| Cash dividends - Class A common stock ($2.00 per share for 2025, $2.00 per share for 2024 and $1.50 per share for 2023) | (457,934) | (482,950) | (378,080) | ||||||||||||||
| Cash dividends - Class B common stock ($2.00 per share for 2025, $2.00 per share for 2024 and $1.50 per share for 2023) | (63,025) | (65,873) | (52,480) | ||||||||||||||
| Millrose Properties, Inc. spin-off | (4,838,827) | — | — | ||||||||||||||
| Balance at November 30, | 22,471,471 | 25,753,078 | 22,369,368 | ||||||||||||||
| Treasury stock, at cost: | |||||||||||||||||
| Beginning balance | (3,649,564) | (1,393,100) | (210,389) | ||||||||||||||
| Employee stock and directors plans | (66,000) | (86,627) | (72,562) | ||||||||||||||
| Purchases of treasury stock | (1,742,369) | (2,169,837) | (1,110,149) | ||||||||||||||
| Non-cash purchases of treasury stock through Millrose Properties, Inc. exchange offer | (999,676) | — | — | ||||||||||||||
| Balance at November 30, | (6,457,609) | (3,649,564) | (1,393,100) | ||||||||||||||
| Accumulated other comprehensive income (loss): | |||||||||||||||||
| Beginning balance | 7,529 | 4,879 | 2,408 | ||||||||||||||
| Total other comprehensive income (loss), net of tax | (1,518) | 2,650 | 2,471 | ||||||||||||||
| Balance at November 30, | 6,011 | 7,529 | 4,879 | ||||||||||||||
| Total stockholders’ equity | 21,959,417 | 27,870,135 | 26,580,664 | ||||||||||||||
| Noncontrolling interests: | |||||||||||||||||
| Beginning balance | 151,090 | 121,302 | 139,867 | ||||||||||||||
| Net earnings attributable to noncontrolling interests | 30,121 | 35,122 | 22,780 | ||||||||||||||
| Receipts related to noncontrolling interests | 32,105 | 20,117 | 21,149 | ||||||||||||||
| Payments related to noncontrolling interests | (19,878) | (46,650) | (71,272) | ||||||||||||||
| Non-cash purchase or activity of noncontrolling interests, net | (12,246) | 21,199 | 8,778 | ||||||||||||||
| Balance at November 30, | 181,192 | 151,090 | 121,302 | ||||||||||||||
| Total equity | $ | 22,140,609 | 28,021,225 | 26,701,966 |
See accompanying notes to consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended November 30, 2025, 2024 and 2023
(In thousands)
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net earnings (including net earnings attributable to noncontrolling interests) | $ | 2,108,300 | 3,967,655 | 3,961,291 | |||||||||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 134,310 | 115,528 | 110,164 | ||||||||||||||
| Amortization of discount/premium and accretion on debt, net | 88 | 148 | (1,651) | ||||||||||||||
| Equity in (earnings) losses from unconsolidated entities | (78,225) | (164,099) | 144,610 | ||||||||||||||
| Distributions of earnings from unconsolidated entities | 36,578 | 155,565 | 53,125 | ||||||||||||||
| Share-based compensation expense | 163,494 | 176,676 | 160,720 | ||||||||||||||
| Deferred income tax expense (benefit) | 77,295 | 60,426 | (67,968) | ||||||||||||||
| Loans held-for-sale unrealized (gains) losses | (26,618) | 52,482 | 26,658 | ||||||||||||||
| Loss on Millrose Properties, Inc. exchange offer | 156,076 | — | — | ||||||||||||||
| Lennar Other (gains) losses from technology investments and other (gains) losses, net | (100,159) | (67,226) | 112,541 | ||||||||||||||
| Gains on sale of investments in unconsolidated entities and other | (35,900) | — | — | ||||||||||||||
| Gains on sale of operating properties and equipment and other assets and loans receivables | (77,737) | (38,837) | (7,015) | ||||||||||||||
| Gain on redemption/repurchases of senior notes and other debts payable | — | (825) | (9,611) | ||||||||||||||
| Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets | 246,220 | 143,265 | 125,338 | ||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Decrease (increase) in receivables | 66,764 | (129,212) | (329,191) | ||||||||||||||
| (Increase) decrease in inventories, excluding valuation adjustments | (150,921) | (285,095) | 2,274,083 | ||||||||||||||
| Increase in deposits and pre-acquisition costs on real estate | (1,549,664) | (1,631,783) | (295,761) | ||||||||||||||
| Increase in other assets | (186,071) | (113,276) | (85,005) | ||||||||||||||
| Decrease (increase) in loans held-for-sale | 123,733 | (218,393) | (366,728) | ||||||||||||||
| (Decrease) increase in accounts payable and other liabilities | (690,751) | 380,380 | (625,862) | ||||||||||||||
| Net cash provided by operating activities | $ | 216,812 | 2,403,379 | 5,179,738 | |||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Net additions to operating properties and equipment | $ | (188,629) | (171,503) | (99,799) | |||||||||||||
| Proceeds from sale of other assets | 150,824 | 61,441 | 13,215 | ||||||||||||||
| Proceeds from sale of investments in unconsolidated entities | 258,672 | — | — | ||||||||||||||
| Proceeds from sale of investments | 100,330 | — | — | ||||||||||||||
| Investments in and contributions to unconsolidated entities | (253,713) | (425,562) | (201,042) | ||||||||||||||
| Distributions of capital from unconsolidated and consolidated entities | 281,536 | 231,096 | 99,643 | ||||||||||||||
| Proceeds from sale of loan receivables | 114,661 | — | — | ||||||||||||||
| Acquisitions, net of cash and restricted cash acquired | (254,492) | — | — | ||||||||||||||
| Decrease (increase) in Financial Services loans held-for-investment | 11,580 | (734) | 14,329 | ||||||||||||||
| Purchases of investment securities | (3,456) | (4,519) | (8,000) | ||||||||||||||
| Proceeds from maturities/sales of investment securities | 4,255 | 7,224 | 4,673 | ||||||||||||||
| Net cash provided by (used in) investing activities | $ | 221,568 | (302,557) | (176,981) | |||||||||||||
LENNAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Years Ended November 30, 2025, 2024 and 2023
(In thousands)
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Borrowings under term loan facility | $ | 1,710,000 | — | — | |||||||||||||
| Net (repayments) borrowings under warehouse facilities | (140,648) | (232,848) | 28,712 | ||||||||||||||
| Proceeds from issuance of senior notes | 700,000 | — | — | ||||||||||||||
| Redemption/repurchases of senior notes | (500,000) | (553,865) | (1,121,133) | ||||||||||||||
| Principal payments on notes payable and other borrowings | (57,860) | (43,524) | (105,118) | ||||||||||||||
| Net cash distributed in connection with Millrose Properties, Inc spin-off | (416,006) | — | — | ||||||||||||||
| Proceeds from liabilities related to consolidated inventory not owned | 2,118 | 195,524 | 461,312 | ||||||||||||||
| Payments related to liabilities related to consolidated inventory not owned | (566,173) | (209,333) | (842,781) | ||||||||||||||
| Payments related to other liabilities, net | (5,684) | (5,684) | (5,187) | ||||||||||||||
| Receipts related to noncontrolling interests | 32,105 | 20,117 | 21,149 | ||||||||||||||
| Payments related to noncontrolling interests | (19,878) | (46,650) | (71,272) | ||||||||||||||
| Debt issuance costs | (6,502) | — | — | ||||||||||||||
| Common stock: | |||||||||||||||||
| Repurchases | (1,808,369) | (2,256,464) | (1,182,711) | ||||||||||||||
| Dividends | (520,959) | (548,823) | (430,560) | ||||||||||||||
| Net cash used in financing activities | $ | (1,597,856) | (3,681,550) | (3,247,589) | |||||||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (1,159,476) | (1,580,728) | 1,755,168 | ||||||||||||||
| Cash and cash equivalents and restricted cash at beginning of year | 4,990,210 | 6,570,938 | 4,815,770 | ||||||||||||||
| Cash and cash equivalents and restricted cash at end of year | $ | 3,830,734 | 4,990,210 | 6,570,938 | |||||||||||||
| Summary of cash and cash equivalents and restricted cash: | |||||||||||||||||
| Homebuilding | $ | 3,441,324 | 4,662,643 | 6,273,724 | |||||||||||||
| Financial Services | 258,873 | 175,382 | 159,491 | ||||||||||||||
| Multifamily | 34,172 | 30,948 | 39,334 | ||||||||||||||
| Lennar Other | 21,936 | 40,691 | 1,948 | ||||||||||||||
| Homebuilding restricted cash | 25,930 | 11,799 | 13,481 | ||||||||||||||
| Financial Services restricted cash | 48,499 | 68,747 | 82,960 | ||||||||||||||
| $ | 3,830,734 | 4,990,210 | 6,570,938 | ||||||||||||||
| Supplemental disclosures of cash flow information: | |||||||||||||||||
| Cash paid for interest, net of amounts capitalized | $ | 50,137 | 54,921 | 81,223 | |||||||||||||
| Cash paid for income taxes, net (1) | $ | 988,544 | 790,476 | 1,864,941 | |||||||||||||
| Supplemental disclosures of non-cash investing and financing activities: | |||||||||||||||||
| Purchases of inventories financed by sellers | $ | 320 | 35,292 | 13,500 | |||||||||||||
| Net non-cash contributions to unconsolidated entities | 162,454 | 23,354 | 367 | ||||||||||||||
| Millrose Properties, Inc. spin-off: | |||||||||||||||||
| Inventories | $ | (5,578,704) | — | — | |||||||||||||
| Investments in unconsolidated entities | 1,197,039 | — | — | ||||||||||||||
| Other assets | (60,156) | — | — | ||||||||||||||
| Notes payable | 19,000 | — | — | ||||||||||||||
| Retained earnings | 4,422,821 | — | — | ||||||||||||||
| Millrose Properties, Inc. exchange offer: | |||||||||||||||||
| Investments in unconsolidated entities | $ | (1,135,622) | — | — | |||||||||||||
| Other liabilities | (10,232) | — | — | ||||||||||||||
| Treasury stock | 989,778 | — | — | ||||||||||||||
(1)Cash paid for income taxes includes amounts paid to federal and state taxing authorities as well as cash payments made to unrelated parties for the purchase of transferable business tax credits.
See accompanying notes to consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies
Basis of Consolidation
The accompanying consolidated financial statements include the accounts of Lennar Corporation and all subsidiaries, partnerships and other entities in which Lennar Corporation has a controlling interest and VIEs (see Note 9) in which Lennar Corporation (the "Company") is deemed the primary beneficiary. The Company’s investments in both unconsolidated entities in which a significant, but less than controlling, interest is held and in VIEs in which the Company is not deemed to be the primary beneficiary are accounted for using the equity method. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Revenue Recognition
Homebuilding revenues and related profits from sales of homes are recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the homebuyer. In order to promote sales of homes, the Company may offer sales incentives to homebuyers. The types of incentives vary on a community-by-community basis and home-by-home basis. They include primarily price discounts on individual homes and financing incentives, all of which are reflected as a reduction of home sales revenues. For the years ended November 30, 2025, 2024 and 2023, sales incentives offered to homebuyers averaged $62,700 per home, or 13.8% as a percentage of home sales revenues, $48,800 per home, or 10.3% as a percentage of home sales revenues and $42,900 per home, or 8.8% as a percentage of home sales revenues, respectively. The Company’s performance obligation, to deliver the agreed-upon home, is generally satisfied in less than one year from the original contract date. Cash proceeds from home closings are included in Homebuilding cash and cash equivalents in the Company's consolidated balance sheets. Contract liabilities include customer deposits liability related to sold but undelivered homes that are included in other liabilities in the Company's consolidated balance sheets. The Company periodically elects to sell parcels of land to third parties. Cash consideration from land sales is typically due on the closing date, which is generally when performance obligations are satisfied, and revenue is recognized as title to and possession of the property are transferred to the buyer.
Advertising Costs
The Company expenses advertising costs as incurred. Advertising costs were $210.8 million, $190.9 million and $146.0 million for the years ended November 30, 2025, 2024 and 2023, respectively. These costs were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss).
Share-Based Payments
The Company has share-based awards outstanding under the 2016 Equity Incentive Plan (the "Plan"), which provides for the granting of stock options, stock appreciation rights, restricted common stock ("nonvested shares") and other share based awards to officers, associates and directors. The exercise prices of stock options may not be less than the market value of the common stock on the date of the grant. Exercises are permitted in installments determined when options are granted. Each stock option will expire on a date determined at the time of the grant, but not more than 10 years after the date of the grant. The Company accounts for stock option awards and nonvested share awards granted under the Plan based on the estimated grant date fair value.
Cash and Cash Equivalents and Restricted Cash
The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Due to the short maturity period of cash equivalents, the carrying amounts of these instruments approximate their fair values. Homebuilding restricted cash consists of customer deposits on home sales held in restricted accounts until title transfers to the homebuyer, as required by the state and local governments in which the homes were sold, as well as funds on deposit to secure and support performance obligations. Financial Services restricted cash consists of upfront deposits and application fees LMF Commercial receives before originating loans and is recognized as income once the loan has been originated, as well as cash balances required by certain residential warehouse facilities and proceeds from loan sales not yet remitted to the warehouse facilities.
Homebuilding cash and cash equivalents as of November 30, 2025 and 2024 included $150.6 million and $265.6 million, respectively, of cash held in escrow for approximately two days.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Receivables
At November 30, 2025 and 2024, Homebuilding accounts receivable primarily related to receivables from land banks for land development, rebates and joint ventures. The Company performs ongoing credit evaluations of its customers and generally does not require collateral for accounts receivable. Receivables from land banks represent development costs incurred by the Company which are reimbursable from the land banks. Mortgages and notes receivable arising from the sale of homes and land are generally collateralized by the property sold to the buyer. Allowances are maintained for potential credit losses based on historical experience, present economic conditions and other factors considered relevant by the Company. Balances as of November 30, 2025 and 2024 are noted below:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Accounts receivable | $ | 841,786 | 901,290 | ||||||||
| Mortgages and notes receivable | 161,672 | 154,320 | |||||||||
| 1,003,458 | 1,055,610 | ||||||||||
| Allowance for credit losses | (829) | (2,399) | |||||||||
| Receivables, net | $ | 1,002,629 | 1,053,211 |
Inventories
Finished homes and construction in progress are included within inventories. Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value. Inventory costs include land, land development, home construction costs, real estate taxes, and interest related to development and construction. Construction overhead and selling expenses are expensed as incurred. Homes held-for-sale are classified as inventories until delivered. Land, land development, amenities and other costs are accumulated by specific area and allocated to homes within the respective areas.
The Company reviews its inventory for indicators of impairment by evaluating each community during each reporting period. The inventory within each community is categorized as finished homes, construction in progress or land under development based on the development state of the community. There were 1,699 and 1,436 active communities, excluding unconsolidated entities, as of November 30, 2025 and 2024, respectively. If the undiscounted projected cash flows expected to be generated by a community are less than its carrying amount, an impairment charge is recorded to write down the carrying amount of such community to its estimated fair value.
In conducting its review for indicators of impairment on a community level, the Company evaluates, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales and the estimated fair value of the land itself. The Company pays particular attention to communities in which inventory is moving at a slower than anticipated absorption pace and communities whose average sales price and/or margins are trending downward and are anticipated to continue to trend downward. From this review, the Company identifies communities in which to assess if the carrying values exceed their undiscounted projected cash flows.
The Company estimates the fair value of its communities using a discounted cash flow model. The projected cash flows for each community are significantly impacted by estimates related to market supply and demand, product type by community, homesite sizes, sales pace, sales prices, sales incentives, construction costs, sales and marketing expenses, the local economy, competitive conditions, labor costs, costs of materials and other factors for that particular community. Every division evaluates the historical performance of each of its communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above.
Each of the homebuilding markets in which the Company operates is unique, as homebuilding has historically been a local business driven by local market conditions and demographics. Each of the Company’s homebuilding markets has specific supply and demand relationships reflective of local economic conditions. The Company’s projected cash flows are impacted by many assumptions. Some of the most critical assumptions in the Company’s cash flow model are projected absorption pace for home sales, sales prices and costs to build and deliver homes on a community by community basis.
In order to arrive at the assumed absorption pace for home sales and the assumed sales prices included in the Company’s cash flow model, the Company analyzes its historical absorption pace and historical sales prices in the community and in other comparable communities in the geographical area. In addition, the Company considers internal and external market studies and places greater emphasis on more current metrics and trends, which generally include, but are not limited to, statistics and forecasts on population demographics and on sales prices in neighboring communities, unemployment rates and availability and sales prices of competing product in the geographical area where the community is located as well as the
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
absorption pace realized in its most recent quarters and the sales prices included in the Company's current backlog for such communities.
Generally, if the Company notices a variation from historical results over a span of two fiscal quarters, the Company considers such variation to be the establishment of a trend and adjusts its historical information accordingly in order to develop assumptions on the projected absorption pace and sales prices in the cash flow model for a community.
In order to arrive at the Company’s assumed costs to build and deliver homes, the Company generally assumes a cost structure reflecting contracts currently in place with its vendors adjusted for any anticipated cost reduction initiatives or increases in cost structure. Those costs assumed are used in the cash flow model for the Company’s communities.
Since the estimates and assumptions included in the Company’s cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead the Company to incur additional impairment charges in the future.
The determination of fair value requires discounting the projected cash flows at a rate the Company believes a market participant would determine to be commensurate with the inherent risks associated with the assets and related estimated cash flow streams. The discount rate used in determining each asset’s fair value depends on the community’s projected life and development stage.
The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change. For example, changes in market conditions and other specific developments or changes in assumptions may cause the Company to re-evaluate its strategy regarding previously impaired inventory, as well as inventory not currently impaired but for which indicators of impairment may arise if market deterioration occurs, and certain other assets that could result in further valuation adjustments and/or additional write-offs of option deposits and pre-acquisition costs due to abandonment of those options contracts.
The Company's valuation adjustments for finished homes and construction in progress were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2025 and 2024. The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:
| At November 30, | Communities with valuation adjustments for the years ended November 30, | |||||||||||||||||||||||||||||||
| # of communities with potential indicators of impairment | # of communities | Fair Value (in thousands) | Valuation Adjustments (in thousands) | |||||||||||||||||||||||||||||
| 2025 | 180 | 37 | $198,333 | $58,669 | ||||||||||||||||||||||||||||
| 2024 | 33 | 6 | 40,465 | 18,599 | ||||||||||||||||||||||||||||
The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments:
| For the Years Ended November 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Unobservable inputs | Range | Range | |||||||||||||||||||||
| Average selling price (1) | $168,000 | — | $925,000 | $178,000 | — | $702,000 | |||||||||||||||||
| Absorption rate per quarter (homes) | 2 | — | 13 | 6 | — | 15 | |||||||||||||||||
| Discount rate | 20% | 20% |
(1)Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during the years ended November 30, 2025 and 2024.
In the course of executing on the Company’s land-light strategy, the Company may sell land to third parties (including land banks) and unconsolidated entities while maintaining an option to repurchase the land in the future. Although, such transactions include cash consideration from the buyer and the transfer of title from the Company to the buyer, not all transactions meet the criteria for revenue recognition under GAAP due to the Company’s option to repurchase the land from the buyer in the future. As such, land related to same transactions remains on the Company’s accompanying consolidated balance sheet and is reclassified from land and land under development to consolidated inventory not owned. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits. During the year ended November 30, 2025, consolidated inventory not owned decreased by $2.4 billion with a $2.1 billion decrease to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2025. The decrease was primarily due to the reassessment of certain option contracts terms that were amended. This reassessment resulted in a decrease of $2.5 billion of consolidated inventory not owned with a corresponding decrease of $2.3 billion of liabilities related to consolidated inventory not owned. The decrease was
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
partially offset by the consolidation of homesites under option contracts that the Company is compelled to takedown, which resulted in an increase of $663.3 million of consolidated inventory not owned with a corresponding increase of $612.7 million of liabilities related to consolidated inventory not owned. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying consolidated balance sheet as of November 30, 2025.
Deposits and Pre-acquisition Costs on Real Estate
The Company has access to land inventory through option contracts, which generally enables the Company to defer acquiring portions of properties owned by third parties (including land banks) and unconsolidated entities until it has determined whether to exercise its option. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings.
A majority of the Company’s option contracts require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land. As of November 30, 2025, the Company had $6.3 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites. The Company’s option contracts sometimes include price adjustment provisions, which adjust the purchase price of the land to its approximate fair value at the time of acquisition or are based on the fair value at the time of takedown.
Deposits and pre-acquisition costs on real estate are stated at cost unless the deposit or pre-acquisition costs within a community is determined to be impaired, in which case the impaired cost is written down to fair value. Costs include deposits on land purchase contracts and capitalizable due diligence and development costs incurred prior to the acquisition of land.
Some option contracts contain a predetermined takedown schedule for the optioned land parcels. However, in substantially all instances, the Company has the right and ability to not exercise its option and forfeit its deposit without further penalty, other than termination of the option and loss of any unapplied portion of its deposit and pre-acquisition costs and the incurrence of any applicable termination fee associated with the option contract. Therefore, in substantially all instances, the Company does not consider the takedown price to be a firm contractual obligation. In determining whether to walk away from an option contract, the Company evaluates the option primarily based upon its expected cash flows from the property under option. If the Company intends to walk away from an option contract, it records a charge to earnings in the period such decision is made for the unapplied deposit amount and any related pre-acquisition costs and accrues any applicable termination fee associated with the option contract. During the years ended November 30, 2025 and 2024, the Company wrote-off $23.1 million and $5.1 million, respectively, of deposit and pre-acquisition costs.
Investments in Unconsolidated Entities
The Company evaluates the long-lived assets in unconsolidated entities for indicators of impairment during each reporting period. The Company’s proportionate share of a valuation adjustment is reflected in the Company's Homebuilding, Multifamily or Lennar Other equity in earnings (losses) from unconsolidated entities with a corresponding decrease to its Homebuilding, Multifamily or Lennar Other investment in unconsolidated entities.
Additionally, the Company evaluates if a decrease in the fair value of an investment below its carrying value is other-than- temporary. This evaluation includes certain critical assumptions made by management: (1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions, (3) the length of the time and the extent to which the market value has been less than cost and (4) various other factors, which include, but are not limited to, relationships with the other partners and banks, general economic market conditions, unfavorable regulatory actions, land status and liquidity needs of the unconsolidated entity. Current assessments with regard to the Company's other-than-temporary impairment are subject to change based on future events. If the Company determines from the evaluation of the indicators that the decline in the fair value of the investment is other-than-temporary, the Company will write-down the investment to fair value. During the year ended November 30, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an other-than-temporary impairment of $23.2 million, included in Other income (expense), net and other gains (losses), net in the Company's consolidated statements of operations and comprehensive income (loss). During the year ended November 30, 2024, the Company evaluated its investments in unconsolidated entities and concluded that no material other-than-temporary impairments were required.
The Company tracks its share of cumulative earnings and distributions of its joint ventures ("JVs"). For purposes of classifying distributions received from JVs in the Company’s consolidated statements of cash flows, cumulative distributions are treated as returns on capital to the extent of cumulative earnings and included in the Company’s consolidated statements of cash flows as operating activities. Cumulative distributions in excess of the Company’s share of cumulative earnings are treated as returns of capital and included in the Company’s consolidated statements of cash flows as cash from investing activities.
Variable Interest Entities
GAAP requires the assessment of whether an entity is a variable interest entity ("VIE") and, if so, if the Company is the primary beneficiary at the inception of the entity or at a reconsideration event. Additionally, GAAP requires the
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
consolidation of VIEs in which an enterprise has a controlling financial interest. A controlling financial interest will have both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.
The Company’s variable interest in VIEs may be in the form of (1) equity ownership, (2) contracts to purchase assets, (3) management and development agreements between the Company and a VIE, (4) loans provided by the Company to a VIE or other partner and/or (5) guarantees provided by members to banks and other third parties. The Company examines specific criteria and uses its judgment when determining if it is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, level of economic disproportionality, if any, between the Company and the other partner(s) and contracts to purchase assets from VIEs. The determination of whether an entity is a VIE and, if so, whether the Company is the primary beneficiary may require management to exercise significant judgment.
Generally, all major decision making in the Company’s joint ventures is shared among all partners. In particular, business plans and budgets are generally required to be unanimously approved by all partners. Generally, the Company has options on less than a majority of the JV’s assets at the balance sheet date and the purchase prices under its option contracts are initially negotiated at fair value.
Generally, Homebuilding, Multifamily and Lennar Other unconsolidated entities are determined to be VIEs due to insufficient equity at risk for the JV entity as the partner(s) continue to provide subordinated financial support in the form of capital contributions. Homebuilding, Multifamily and Lennar Other unconsolidated entities become VIEs and consolidate if the other partner(s) lack the intent or financial wherewithal to remain in the entity. As a result, the Company continues to fund operations and debt paydowns through partner loans or substituted capital contributions.
Goodwill
Goodwill is recorded with regard to acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired. In accordance with ASC 350, Intangibles-Goodwill and Other, the Company evaluates goodwill for potential impairment on at least an annual basis. The Company has the option to perform a qualitative or quantitative assessment to determine whether the fair value of an operating segment exceeds its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the operating segments and other specific events. If a quantitative assessment is performed, the fair value estimate is derived through various valuation methods, including the use of discounted expected future cash flows of each reporting unit. The expected future cash flows for each operating segment are significantly impacted by current market conditions. If these market conditions and resulting expected future cash flows for each operating segment decline significantly, the actual results for each segment could differ from the Company's estimate, which may cause goodwill to be impaired. The annual qualitative goodwill impairment analysis was performed as of September 30, 2025, and no impairment was recorded.
Operating Properties and Equipment
Operating properties and equipment are recorded at cost and are included in other assets in the consolidated balance sheets. The assets are depreciated over their estimated useful lives using the straight-line method. At the time operating properties and equipment are disposed of, the asset and related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to earnings. The estimated useful life for operating properties is 30 years, for furniture, fixtures and equipment is two to 10 years and for leasehold improvements is five years or the life of the lease, whichever is shorter. Operating properties are reviewed for possible impairment if there are indicators that their carrying amounts are not recoverable.
Operating properties and equipment are included in Homebuilding other assets in the consolidated balance sheets and were as follows:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Operating properties (1) | $ | 491,705 | 358,130 | ||||||||
| Leasehold improvements | 75,921 | 77,921 | |||||||||
| Furniture, fixtures and equipment | 390,387 | 371,567 | |||||||||
| 958,013 | 807,618 | ||||||||||
| Accumulated depreciation and amortization | (315,175) | (291,420) | |||||||||
| Total | $ | 642,838 | 516,198 |
(1)Operating properties primarily include solar systems, rental operations and commercial properties.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Investment Securities
The Company holds investment securities classified as available-for-sale or held-to-maturity. Available-for-sale securities are recorded at fair value. Any unrealized holding gains or losses on available-for-sale securities are reported as accumulated other comprehensive income or loss, which is a separate component of stockholders’ equity, net of tax, until realized. Securities classified as held-to-maturity are carried at amortized cost because they are purchased with the intent and ability to hold to maturity.
At November 30, 2025 and 2024, the Financial Services segment had investment securities classified as held-to-maturity totaling $132.9 million and $135.6 million, respectively, which consist mainly of commercial mortgage-backed securities ("CMBS"), corporate debt obligations, U.S. government agency obligations, certificates of deposit and U.S. treasury securities that mature at various dates, mainly within three years.
At November 30, 2025 and 2024, the Lennar Other segment had investment securities classified as held-for-sale totaling $39.1 million and $40.6 million, respectively. Additionally, the Lennar Other segment had investments in equity securities with a readily determinable fair value (publicly traded common stock), not accounted for under the equity method, that are recorded at fair value with unrealized gains and losses included in earnings. For equity securities without a readily determinable fair value, the investment is recorded at cost, less any impairment, plus or minus adjustments related to observable transactions for the same or similar securities, with unrealized gains and losses included in earnings. The Lennar Other segment had investments in equity securities of $346.8 million and $347.8 million that are recorded at fair value with unrealized gains and losses included in earnings, as of November 30, 2025 and 2024, respectively.
For equity method investments in the Lennar Other segment, the Company records the investment as Lennar Other investments in unconsolidated entities. The Company regularly reviews its investments in unconsolidated entities to determine whether there is a decline in fair value below book value. If there is a decline that is other-than-temporary, the investment is written down to fair value. There were no impairments recorded during the years ended November 30, 2025 and 2024.
Interest and Real Estate Taxes
Interest and real estate taxes attributable to land and homes are capitalized as inventory costs while they are being actively developed. Interest related to homebuilding and land, including interest costs relieved from inventories, is included in costs of homes sold and costs of land sold. Interest expense related to the Financial Services and Multifamily operations is included in its costs and expenses.
During the years ended November 30, 2025, 2024 and 2023, interest incurred by the Company’s homebuilding operations related to homebuilding debt was $184.6 million, $129.3 million and $187.6 million, respectively; interest capitalized into inventories was $170.7 million, $110.5 million and $172.0 million, respectively.
Interest expense was included in costs of homes sold, costs of land sold and other interest expense as follows:
| For the Years Ended November 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Interest expense in costs of homes and land sold | $ | 160,944 | 161,221 | 242,459 | |||||||||||||
| Other interest expense (1) | 13,874 | 18,771 | 15,434 | ||||||||||||||
| Total interest expense | $ | 174,818 | 179,992 | 257,893 |
(1)Included in Other income (expense), net and other gains (losses), net.
Income Taxes
The Company records income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and attributable to operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which the temporary differences are expected to be recovered or paid. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense.
A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Based on the analysis of positive and negative evidence, the Company believed that there was enough positive evidence for the Company to conclude that it was more likely than not that the Company would realize the majority of its deferred tax assets. As of November 30, 2025 and 2024, the Company's net deferred tax assets of $134.9 million and $272.4 million included a valuation allowance of $2.5 million and $2.6 million, respectively, are included in Other assets in the Company's consolidated balance sheets as of November 30, 2025 and 2024, respectively. See Note 6 for additional information.
Other Liabilities
Reflected within the consolidated balance sheets, the other liabilities balance as of November 30, 2025 and 2024, included accrued interest payable, product warranty (as noted below), accrued bonuses, accrued wages and benefits, lease liabilities, deferred income, customer deposits, income taxes payable, and other accrued liabilities.
Product Warranty
Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in Homebuilding other liabilities in the consolidated balance sheets. The activity in the Company’s warranty reserve was as follows:
| For the Years Ended November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Warranty reserve, beginning of year | $ | 446,240 | 414,796 | ||||||||
| Warranties issued | 250,561 | 288,941 | |||||||||
| Adjustments to pre-existing warranties from changes in estimates (1) | (30,212) | 28,797 | |||||||||
| Payments | (265,998) | (286,294) | |||||||||
| Warranty reserve, end of year | $ | 400,591 | 446,240 |
(1)The adjustments to pre-existing warranties from changes in estimates during the years ended November 30, 2025 and 2024 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.
Self-Insurance
Reserves for estimated losses for construction defects, general liability and workers’ compensation have been established using the assistance of a third-party actuary. The third-party actuary uses the Company's historical warranty and construction defect data to assist management in estimating the unpaid claims, claim adjustment expenses and incurred but not reported claims reserves for the risks that the Company is assuming under the general liability and construction defect programs. The estimates include provisions for inflation, claims handling and legal fees. These estimates are subject to a high degree of variability due to uncertainties such as trends in construction defect claims relative to the markets and the types of products the Company builds, claim settlement patterns, insurance industry practices and legal interpretations. Given the high degree of judgment required in determining these estimated liability amounts, actual future costs could differ significantly from the Company's currently estimated amounts. The Company’s self-insurance reserve, net of expected recoveries, as of November 30, 2025 and 2024 was $336.9 million and $277.4 million, respectively, and was included in Homebuilding other liabilities. Amounts incurred in excess of the Company's self-insurance occurrence or aggregate retention limits are covered by insurance up to the Company's purchased coverage levels. The Company's insurance policies are maintained with highly-rated underwriters for whom the Company believes counterparty default risk is not significant.
Earnings per Share
Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in earnings of the Company.
All outstanding nonvested shares that contain non-forfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings. The Company’s restricted common stock ("nonvested shares") are considered participating securities.
Preferred Stock
The Company is authorized to issue 500,000 shares of preferred stock with a par value of $10 per share and 100
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
million shares of participating preferred stock with a par value of $0.10 per share. No shares of preferred stock or participating preferred stock have been issued as of November 30, 2025 and 2024.
Common Stock
During the years ended November 30, 2025, 2024 and 2023 the Company’s Class A and Class B common stockholders received a per share annual dividend of $2.00, $2.00 and $1.50, respectively. The only significant difference between the Class A common stock and Class B common stock is that Class A common stock entitles holders to one vote per share and the Class B common stock entitles holders to ten votes per share.
As of November 30, 2025, Stuart Miller, the Company’s Executive Chairman and Chief Executive Officer, directly owned, or controlled through family-owned entities, shares of Class A and Class B common stock, which represented approximately 42% voting power of the Company’s stock.
In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $5 billion in value of its outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. This authorization was in addition to what was remaining of the Company's March 2022 stock repurchase program. The repurchase authorization has no expiration date. At November 30, 2025, the Company has a remaining authorization to repurchase $1.7 billion in value of the Company's Class A or B common stock.
| For the Years Ended November 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (Dollars in thousands, except price per share) | Class A | Class B | Class A | Class B | ||||||||||||||||||||||
| Shares repurchased (1) | 13,202,936 | 851,386 | 11,942,725 | 1,612,501 | ||||||||||||||||||||||
| Total purchase price | $ | 1,624,220 | $ | 101,779 | $ | 1,906,049 | $ | 243,860 | ||||||||||||||||||
| Average price per share | $ | 123.02 | $ | 119.55 | $ | 159.60 | $ | 151.23 | ||||||||||||||||||
(1) Shares repurchased do not include 8,049,594 shares of Lennar Class A common stock accepted through a non-cash exchange for shares of Millrose Properties, Inc. ("Millrose") Class A common stock, which was completed in November 2025 (see Note 2 for details).
Restrictions on Payment of Dividends
There are no restrictions on the payment of dividends on common stock by the Company. There are no agreements which restrict the payment of dividends by subsidiaries of the Company other than the need to maintain the financial ratios and net worth requirements under the Financial Services segment’s warehouse lines of credit, which restrict the payment of dividends from the Company’s mortgage subsidiaries following the occurrence and during the continuance of an event of default thereunder.
401(k) Plan
Under the Company’s 401(k) Plan (the "Plan"), contributions made by associates can be invested in a variety of mutual funds or proprietary funds provided by the Plan trustee. The Company may also make contributions for the benefit of associates. The Company records as compensation expense its contribution to the Plan. For the years ended November 30, 2025, 2024 and 2023, this amount was $78.5 million, $69.7 million and $53.4 million, respectively.
Share-Based Payments
Compensation expense related to the Company’s share-based awards was as follows:
| For the Years Ended November 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Total compensation expense for nonvested share-based awards | $ | 163,494 | 176,676 | 160,720 | |||||||||||||
The fair value of nonvested shares is determined based on the trading price of the Company’s common stock on the grant date. The weighted average fair value of nonvested shares granted during the years ended November 30, 2025, 2024 and 2023 was $131.23, $141.11 and $91.61, respectively. A summary of the Company’s nonvested shares activity for the year ended November 30, 2025 was as follows:
| Shares | Weighted Average Grant Date Fair Value | ||||||||||
| Nonvested shares at November 30, 2024 | 2,711,021 | $ | 114.72 | ||||||||
| Grants | 1,428,067 | $ | 131.23 | ||||||||
| Vested | (1,509,073) | $ | 109.07 | ||||||||
| Forfeited | (219,936) | $ | 122.11 | ||||||||
| Nonvested shares at November 30, 2025 | 2,410,079 | $ | 127.37 |
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
At November 30, 2025, there was $126.0 million of unrecognized compensation expense related to unvested share-based awards granted under the Company’s share-based payment plan, all of which relates to nonvested shares with a weighted average remaining contractual life of 1.8 years. For the years ended November 30, 2025, 2024 and 2023, 1.5 million, 1.7 million and 2.0 million nonvested shares, respectively, vested each year.
Financial Services
Revenue Recognition
Premiums on title policies issued directly by the Company are recognized as revenue on the effective date of the title policies. Escrow fees and loan origination revenues are recognized at the time the related real estate transactions are completed, usually upon the close of escrow. Expected gains and losses from the sale of loans and their related servicing rights are included in the measurement of all written loan commitments that are accounted for at fair value through earnings at the time of commitment. Interest income on loans held-for-sale and loans held-for-investment is recognized as earned over the terms of the mortgage loans based on the contractual interest rates.
Loans Held-for-Sale
Loans held-for-sale by the Financial Services segment, including the rights to service the mortgage loans, are carried at fair value and changes in fair value are reflected in earnings. Premiums and discounts recorded on these loans are presented as an adjustment to the carrying amount of the loans and are not amortized. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions.
Provision for Losses
The Company establishes reserves for possible losses associated with mortgage loans previously originated and sold to investors 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. Loan origination liabilities are included in Financial Services’ liabilities in the consolidated balance sheets. The activity in the Company’s loan origination liabilities was as follows:
| For the Years Ended November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Loan origination liabilities, beginning of year | $ | 16,714 | 17,598 | ||||||||
| Provision for losses | 2,855 | (482) | |||||||||
| Payments | (2,171) | (402) | |||||||||
| Loan origination liabilities, end of year | $ | 17,398 | 16,714 |
Loans Held-for-Investment, Net
Loans for which the Company has the positive intent and ability to hold to maturity consist of mortgage loans carried at the principal amounts outstanding, net of unamortized discounts and allowance for credit losses. Discounts are amortized over the estimated lives of the loans using the interest method.
The Financial Services segment provides an allowance for credit losses. The provision recorded and the adequacy of the related allowance is determined by management’s continuing evaluation of the loan portfolio in light of past loan loss experience, credit worthiness and nature of underlying collateral, present economic conditions and other factors considered relevant by the Company’s management. Anticipated changes in economic factors, which may influence the level of the allowance, are considered in the evaluation by the Company’s management when the likelihood of the changes can be reasonably determined. While the Company’s management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary as a result of future economic and other conditions that may be beyond management’s control.
Derivative Financial Instruments
The Financial Services segment, in the normal course of business, uses derivative financial instruments to reduce its exposure to fluctuations in mortgage-related interest rates. The segment uses mortgage-backed securities ("MBS") forward commitments, option contracts, future contracts and investor commitments to protect the value of fixed rate-locked loan commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. These derivative financial instruments are carried at fair value with the changes in fair value included in Financial Services revenues.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
LMF Commercial - Loans Held-for-Sale
The originated mortgage loans are classified as loans held-for-sale and are recorded at fair value. The Company elected the fair value option for LMF Commercial's loans held-for-sale in accordance with ASC 825, Financial Instruments, which permits entities to measure various financial instruments and certain other items at fair value on a contract-by-contract basis. Management believes that carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments, which are also carried at fair value, used to economically hedge them without having to apply complex hedge accounting provisions. Changes in fair values of the loans are reflected in Financial Services revenues in the accompanying consolidated statements of operations. Interest income on these loans is calculated based on the interest rate of the loan and is recorded in Financial Services revenues in the accompanying consolidated statements of operations. Substantially all of the mortgage loans originated are sold within a short period of time in securitizations on a servicing-released, non-recourse basis; although, the Company remains liable for certain limited industry-standard representations and warranties related to loan sales. The Company recognizes revenue on the sale of loans into securitization trusts when control of the loans has been relinquished.
Multifamily
Management Fees and General Contractor Revenue
The Multifamily segment provides management services with respect to the development and construction and of rental projects in joint ventures in which the Company has investments or the funds the Company manages. As a result, the Multifamily segment earns and receives fees, which are generally based upon a stated percentage of development and construction costs and a percentage of gross rental collections. In addition, the Multifamily segment provides general contractor services for the construction of some of the rental projects. Both management fees and general contractor revenue are recognized over the period in which the services are performed using an input method, which properly depicts the level of effort required to complete the management or construction services. These customer contracts require the Company to provide management and general contractor services which represents a performance obligation that the Company satisfies over time. Management fees and general contractor services in the Multifamily segment are included in Multifamily revenue.
Recently Adopted Accounting Pronouncements
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 is 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 adopted ASU 2023-07 for the fiscal year ended November 30, 2025 and retrospectively restated prior periods presented (See Note 3 for details regarding the impact of adoption).
In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). 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 five 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 Company's fiscal year ending November 30, 2026 and may be applied either retrospectively or prospectively. The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on its consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the Company's fiscal year ending November 30, 2028. The Company is currently evaluating the impact
that the adoption of ASU 2024-03 will have on its consolidated financial statements and disclosures.
Reclassifications
As a result of the Company's change in Homebuilding reportable segments following the acquisition of Rausch Coleman Homes ("Rausch") (refer to Note 2 of the Notes to Consolidated Financial Statements for more information), the Company reclassified certain prior year segment information in the consolidated financial statements to conform with the 2025 presentation. This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenues or net earnings in the consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2. Business Transactions
Spin-off of Millrose Properties, Inc.
In February 2025, the Company completed the taxable spin-off of Millrose through a distribution of approximately 80% of Millrose's total outstanding stock to the Company's stockholders (the "Millrose Spin-Off"). The Company temporarily retained the remaining 20% of the total outstanding shares of Millrose common stock, which carried no voting rights, and subsequently disposed of them through a non-cash exchange offer completed in November 2025 ("Millrose Exchange Offer").
In connection with the Millrose Spin-Off, the Company contributed to Millrose $5.6 billion in land assets, representing approximately 87,000 homesites, and cash of $1.0 billion, which included $584.0 million of cash deposits related to option contracts. The Millrose Spin-Off transaction accelerated Lennar's longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company.
The Company performed a reassessment of control over Millrose and determined that Millrose met the definition of a variable interest entity in which the Company held a variable interest. The assessment further showed that the Company was not the primary beneficiary and should not consolidate Millrose because the Company does not have the power, either explicitly or implicitly through voting rights or otherwise, to direct the activities that most significantly impact the economic performance of Millrose. Accordingly, the Company deconsolidated the Millrose net assets from the Company's financial statements on the date of the spin-off transaction.
In connection with the Millrose Exchange Offer, the Company accepted 8,049,594 shares of Lennar Class A common stock in exchange for 33,298,754 shares of Millrose Class A common stock. The Millrose Exchange Offer reduced investments in unconsolidated entities and stockholders' equity by $1.1 billion as of November 30, 2025 and resulted in a one-time loss of $156.1 million recorded in Other income (expense), net and other gains (losses), net, in the Company's consolidated statements of operations and comprehensive income (loss).
Acquisition of Rausch Coleman Homes
In February 2025, the Company acquired Rausch, a residential homebuilder based in Fayetteville, Arkansas. The Company acquired Rausch’s homebuilding operations while Millrose acquired Rausch's land assets and the Company has options on the land. With this acquisition, the Company expanded its footprint into new markets in Arkansas (Bentonville/Fayetteville, Little Rock and Jonesboro), Oklahoma (Tulsa and Stillwater), Alabama (Birmingham and Tuscaloosa), and Kansas/Missouri (Kansas City), while adding to its existing footprint in Texas (Houston and San Antonio), Oklahoma (Oklahoma City), Alabama (Huntsville) and Florida (Gulf Coast). The Company acquired $312.6 million of assets, primarily consisting of homes under construction, finished homesites, cash and other assets, and assumed liabilities of $73.0 million, primarily consisting of accounts payable and other liabilities. The cash consideration paid by the Company to Rausch was funded from working capital.
3. Operating and Reporting Segments
Each reportable segment follows the accounting policies described in Note 1 - "Summary of Significant Accounting Policies" to the consolidated financial statements. 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. The Company defines the Chief Operating Decision Maker ("CODM") function as the Executive Chairman and Chief Executive Officer. During fiscal year 2025, the CODM also included a Co-Chief Executive Officer and President, who retired in December 2025. The CODM manages and assesses the Company's Homebuilding performance at a regional level. The CODM evaluates the Homebuilding segment performance using each segment’s revenues generated from sales of homes and earnings (loss) before income taxes. These operating results are reviewed against the annual business plan and quarterly forecast updates, as applicable, and used by the CODM when making the Company’s decisions about the allocation of operating and capital resources to each Homebuilding segment. The CODM’s evaluation of the Financial Services, Multifamily and Lennar Other segments is based on the revenues and earnings (loss) before income taxes.
Operational results of each segment are not necessarily indicative of the results that would have occurred had the segment been an independent, stand-alone entity during the periods presented. The following are the Company’s operating and reportable segments:
Homebuilding segments: (1) East (2) Central (3) South Central (4) West
(5) Financial Services
(6) Multifamily
(7) Lennar Other
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The assets and liabilities related to the Company’s segments were as follows:
| (In thousands) | At November 30, 2025 | ||||||||||||||||||||||||||||
| Assets: | Homebuilding | Financial Services | Multifamily | Lennar Other | Total | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 3,441,324 | 258,873 | 34,172 | 21,936 | 3,756,305 | |||||||||||||||||||||||
| Restricted cash | 25,930 | 48,499 | — | — | 74,429 | ||||||||||||||||||||||||
| Receivables, net (1) | 1,002,629 | 429,560 | 38,673 | — | 1,470,862 | ||||||||||||||||||||||||
| Inventory owned and consolidated inventory not owned | 11,617,633 | — | 223,622 | — | 11,841,255 | ||||||||||||||||||||||||
| Deposits and pre-acquisition costs on real estate | 6,383,633 | — | 15,096 | — | 6,398,729 | ||||||||||||||||||||||||
| Investments in unconsolidated entities | 1,545,370 | 2,528 | 506,573 | 367,965 | 2,422,436 | ||||||||||||||||||||||||
| Loans held-for-sale (2) (5) | — | 2,212,624 | — | — | 2,212,624 | ||||||||||||||||||||||||
| Investments in equity securities (3) | — | — | — | 346,820 | 346,820 | ||||||||||||||||||||||||
| Investments available-for-sale (4) | — | — | — | 39,060 | 39,060 | ||||||||||||||||||||||||
| Investments held-to-maturity | — | 132,868 | — | — | 132,868 | ||||||||||||||||||||||||
| Goodwill | 3,442,359 | 189,699 | — | — | 3,632,058 | ||||||||||||||||||||||||
| Other assets | 1,794,378 | 102,762 | 84,000 | 121,851 | 2,102,991 | ||||||||||||||||||||||||
| Total assets | $ | 29,253,256 | 3,377,413 | 902,136 | 897,632 | 34,430,437 | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Senior notes and other debts payable, net | $ | 4,084,686 | 1,790,309 | — | — | 5,874,995 | |||||||||||||||||||||||
| Liabilities related to consolidated inventory not owned | 1,476,376 | — | — | — | 1,476,376 | ||||||||||||||||||||||||
| Accounts payable and other liabilities | 4,504,360 | 220,289 | 113,361 | 100,447 | 4,938,457 | ||||||||||||||||||||||||
| Total liabilities | $ | 10,065,422 | 2,010,598 | 113,361 | 100,447 | 12,289,828 |
| (In thousands) | At November 30, 2024 | ||||||||||||||||||||||||||||
| Assets: | Homebuilding | Financial Services | Multifamily | Lennar Other | Total | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 4,662,643 | 175,382 | 30,948 | 40,691 | 4,909,664 | |||||||||||||||||||||||
| Restricted cash | 11,799 | 68,747 | — | — | 80,546 | ||||||||||||||||||||||||
| Receivables, net (1) | 1,053,211 | 545,752 | 53,595 | — | 1,652,558 | ||||||||||||||||||||||||
| Inventory owned and consolidated inventory not owned | 19,719,551 | — | 592,879 | — | 20,312,430 | ||||||||||||||||||||||||
| Deposits and pre-acquisition costs on real estate | 3,625,372 | — | 32,643 | — | 3,658,015 | ||||||||||||||||||||||||
| Investments in unconsolidated entities | 1,344,836 | — | 503,303 | 379,435 | 2,227,574 | ||||||||||||||||||||||||
| Loans held-for-sale | — | 2,250,718 | — | — | 2,250,718 | ||||||||||||||||||||||||
| Investments in equity securities (3) | — | — | — | 347,810 | 347,810 | ||||||||||||||||||||||||
| Investments available-for-sale (4) | — | — | — | 40,578 | 40,578 | ||||||||||||||||||||||||
| Loans held-for-investment, net (5) | — | 60,969 | — | — | 60,969 | ||||||||||||||||||||||||
| Investments held-to-maturity | — | 135,646 | — | — | 135,646 | ||||||||||||||||||||||||
| Goodwill | 3,442,359 | 189,699 | — | — | 3,632,058 | ||||||||||||||||||||||||
| Other assets | 1,734,698 | 89,637 | 93,450 | 86,430 | 2,004,215 | ||||||||||||||||||||||||
| Total assets | $ | 35,594,469 | 3,516,550 | 1,306,818 | 894,944 | 41,312,781 | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Senior notes and other debts payable, net | $ | 2,258,283 | 1,930,956 | — | — | 4,189,239 | |||||||||||||||||||||||
| Liabilities related to consolidated inventory not owned | 3,563,934 | — | — | — | 3,563,934 | ||||||||||||||||||||||||
| Accounts payable and other liabilities | 5,040,992 | 209,752 | 181,883 | 105,756 | 5,538,383 | ||||||||||||||||||||||||
| Total liabilities | $ | 10,863,209 | 2,140,708 | 181,883 | 105,756 | 13,291,556 |
(1)Financial Services receivables, net was primarily related to loans sold to investors for which the Company had not yet been paid as of November 30, 2025 and 2024, respectively.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(2)Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $15.5 million of residential loans are carried at lower of cost or fair value.
(3)Investments in equity securities include investments of $114.4 million and $143.0 million without readily available fair values as of November 30, 2025 and 2024, 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 consolidated balance sheets.
(5)During the year ended November 30, 2025, the Financial Services segment transferred its loans held-for-investment of $61.0 million (fair value of $50.3 million) to held-for-sale, based on the Company’s intent to sell the loans in the near future.
Homebuilding Segments
Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under "Homebuilding Other," which is not considered a reportable segment.
The Company renamed its Texas reportable Homebuilding segment to South Central as a result of the Rausch acquisition (see Note 2 of the Notes to Consolidated Financial Statements) in order to streamline and synergize geographic homebuilding operations, assess performance, and allocate resources across the Company’s geographic Homebuilding segments.
The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately, have homebuilding divisions located in:
East: Florida, New Jersey and Pennsylvania
Central: Alabama, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee
and Virginia
South Central: Arkansas, Kansas, Missouri, Oklahoma and 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:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| East | $ | 5,284,111 | 6,967,571 | ||||||||
| Central | 4,695,588 | 5,567,451 | |||||||||
| South Central | 4,195,858 | 4,238,587 | |||||||||
| West | 9,519,804 | 12,148,434 | |||||||||
| Other | 1,692,453 | 1,729,407 | |||||||||
| Corporate and Unallocated | 3,865,442 | 4,943,019 | |||||||||
| Total Homebuilding | $ | 29,253,256 | 35,594,469 |
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Financial information relating to the Company’s segments was as follows:
| For the Year ended November 30, 2025 | ||||||||||||||||||||||||||||||||
| (In thousands) | East | Central | South Central | West | Other (3) | Total Homebuilding | Financial Services | Multifamily | Lennar Other | Total | ||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Sales of homes | $ | 6,896,901 | 7,747,913 | 5,579,035 | 11,857,853 | 15,543 | 32,097,245 | — | — | — | 32,097,245 | |||||||||||||||||||||
| Sales of land | 60,468 | 2,935 | 22,540 | 44,289 | — | 130,232 | — | — | — | 130,232 | ||||||||||||||||||||||
| Other revenues | 12,840 | 5,289 | 2,854 | 6,938 | 11,282 | 39,203 | 1,198,197 | 680,627 | 41,430 | 1,959,457 | ||||||||||||||||||||||
| Total revenues | 6,970,209 | 7,756,137 | 5,604,429 | 11,909,080 | 26,825 | 32,266,680 | 1,198,197 | 680,627 | 41,430 | 34,186,934 | ||||||||||||||||||||||
| Cost and expenses: | ||||||||||||||||||||||||||||||||
| Costs of home sold | 5,532,524 | 6,375,231 | 4,611,244 | 9,884,102 | 20,504 | 26,423,605 | — | — | — | 26,423,605 | ||||||||||||||||||||||
| Costs of land sold | 63,777 | 14,982 | 31,901 | 72,020 | — | 182,680 | — | — | — | 182,680 | ||||||||||||||||||||||
| Ancillary costs and expenses | — | — | — | — | — | — | 585,731 | 750,011 | 179,445 | 1,515,187 | ||||||||||||||||||||||
| Selling, general and administrative | 651,404 | 703,944 | 461,890 | 830,999 | 30,100 | 2,678,337 | — | — | — | 2,678,337 | ||||||||||||||||||||||
| Corporate general and administrative (1) | — | — | — | — | — | — | — | — | — | 636,718 | ||||||||||||||||||||||
| Charitable foundation contribution (1) | — | — | — | — | — | — | — | — | — | 82,583 | ||||||||||||||||||||||
| Total costs and expenses | 6,247,705 | 7,094,157 | 5,105,035 | 10,787,121 | 50,604 | 29,284,622 | 585,731 | 750,011 | 179,445 | 31,519,110 | ||||||||||||||||||||||
| Equity in earnings (losses) from unconsolidated entities | 33,974 | 176 | (17) | 2,004 | 47,515 | 83,652 | — | (18,755) | 13,328 | 78,225 | ||||||||||||||||||||||
| Other income (expense), net and other gains (losses) (2) | (52,647) | 5,899 | (6,263) | (7,706) | 10,259 | (50,458) | — | 12,684 | (24,578) | (62,352) | ||||||||||||||||||||||
| Lennar Other gains from technology investments and other assets | — | — | — | — | — | — | — | — | 130,166 | 130,166 | ||||||||||||||||||||||
| Earnings (loss) before income taxes | $ | 703,831 | 668,055 | 493,114 | 1,116,257 | 33,995 | 3,015,252 | 612,466 | (75,455) | (19,099) | 2,813,863 |
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
| For the Year ended November 30, 2024 | ||||||||||||||||||||||||||||||||
| (In thousands) | East | Central | South Central | West | Other (3) | Total Homebuilding | Financial Services | Multifamily | Lennar Other | Total | ||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Sales of homes | $ | 8,199,004 | 7,855,610 | 4,763,622 | 12,938,103 | 21,810 | 33,778,149 | — | — | — | 33,778,149 | |||||||||||||||||||||
| Sales of land | 44,334 | 16,110 | 21,148 | 11,792 | — | 93,384 | — | — | — | 93,384 | ||||||||||||||||||||||
| Other revenues | 11,264 | 3,636 | 2,355 | 5,958 | 11,680 | 34,893 | 1,109,263 | 411,537 | 14,226 | 1,569,919 | ||||||||||||||||||||||
| Total revenues | 8,254,602 | 7,875,356 | 4,787,125 | 12,955,853 | 33,490 | 33,906,426 | 1,109,263 | 411,537 | 14,226 | 35,441,452 | ||||||||||||||||||||||
| Cost and expenses: | ||||||||||||||||||||||||||||||||
| Costs of home sold | 6,031,893 | 6,173,707 | 3,661,591 | 10,358,651 | 29,511 | 26,255,353 | — | — | — | 26,255,353 | ||||||||||||||||||||||
| Costs of land sold | 33,510 | 13,098 | 10,522 | 16,672 | — | 73,802 | — | — | — | 73,802 | ||||||||||||||||||||||
| Ancillary costs and expenses | — | — | — | — | — | — | 532,079 | 521,455 | 79,495 | 1,133,029 | ||||||||||||||||||||||
| Selling, general and administrative | 690,161 | 638,447 | 370,936 | 762,403 | 18,362 | 2,480,309 | — | — | — | 2,480,309 | ||||||||||||||||||||||
| Corporate general and administrative (1) | — | — | — | — | — | — | — | — | — | 648,986 | ||||||||||||||||||||||
| Charitable foundation contribution (1) | — | — | — | — | — | — | — | — | — | 80,210 | ||||||||||||||||||||||
| Total costs and expenses | 6,755,564 | 6,825,252 | 4,043,049 | 11,137,726 | 47,873 | 28,809,464 | 532,079 | 521,455 | 79,495 | 30,671,689 | ||||||||||||||||||||||
| Equity in earnings (losses) from unconsolidated entities | 31,039 | 1,727 | (17) | 5,362 | 28,337 | 66,448 | — | 150,753 | (53,102) | 164,099 | ||||||||||||||||||||||
| Other income (expense), net and other gains (losses), net (2) | 69,843 | 31,007 | 9,663 | 34,381 | 33,948 | 178,842 | — | 1,800 | 45,224 | 225,866 | ||||||||||||||||||||||
| Lennar Other gains from technology investments | — | — | — | — | — | — | — | — | 25,180 | 25,180 | ||||||||||||||||||||||
| Earnings (loss) before income taxes | $ | 1,599,920 | 1,082,838 | 753,722 | 1,857,870 | 47,902 | 5,342,252 | 577,184 | 42,635 | (47,967) | 5,184,908 |
| For the Year ended November 30, 2023 | ||||||||||||||||||||||||||||||||
| (In thousands) | East | Central | South Central | West | Other (3) | Total Homebuilding | Financial Services | Multifamily | Lennar Other | Total | ||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Sales of homes | $ | 8,446,498 | 7,244,338 | 4,692,821 | 12,052,131 | 23,341 | 32,459,129 | — | — | — | 32,459,129 | |||||||||||||||||||||
| Sales of land | 48,020 | 34,949 | 7,641 | 19,353 | — | 109,963 | — | — | — | 109,963 | ||||||||||||||||||||||
| Other revenues | 29,695 | 25,214 | 6,823 | 14,688 | 15,475 | 91,895 | 976,859 | 573,485 | 22,035 | 1,664,274 | ||||||||||||||||||||||
| Total revenues | 8,524,213 | 7,304,501 | 4,707,285 | 12,086,172 | 38,816 | 32,660,987 | 976,859 | 573,485 | 22,035 | 34,233,366 | ||||||||||||||||||||||
| Cost and expenses: | ||||||||||||||||||||||||||||||||
| Costs of home sold | 5,896,145 | 5,651,209 | 3,593,675 | 9,722,912 | 36,529 | 24,900,470 | — | — | — | 24,900,470 | ||||||||||||||||||||||
| Costs of land sold | 37,249 | 18,084 | 7,167 | 29,642 | — | 92,142 | — | — | — | 92,142 | ||||||||||||||||||||||
| Ancillary costs and expenses | — | — | — | — | — | — | 467,398 | 573,658 | 27,681 | 1,068,737 | ||||||||||||||||||||||
| Selling, general and administrative | 657,220 | 565,831 | 328,330 | 658,265 | 21,387 | 2,231,033 | — | — | — | 2,231,033 | ||||||||||||||||||||||
| Corporate general and administrative (1) | — | — | — | — | — | — | — | — | — | 501,338 | ||||||||||||||||||||||
| Charitable foundation contribution (1) | — | — | — | — | — | — | — | — | — | 73,087 | ||||||||||||||||||||||
| Total costs and expenses | 6,590,614 | 6,235,124 | 3,929,172 | 10,410,819 | 57,916 | 27,223,645 | 467,398 | 573,658 | 27,681 | 28,866,807 | ||||||||||||||||||||||
| Equity in earnings (losses) from unconsolidated entities | 20,165 | 795 | (4) | 1,453 | (26,295) | (3,886) | — | (52,073) | (88,651) | (144,610) | ||||||||||||||||||||||
| Other income (expense), net and other gains (losses), net (2) | 45,383 | 27,561 | 10,518 | 36,160 | (25,371) | 94,251 | — | 1,595 | (65,329) | 30,517 | ||||||||||||||||||||||
| Lennar Other losses from technology investments | — | — | — | — | — | — | — | — | (50,162) | (50,162) | ||||||||||||||||||||||
| Earnings (loss) before income taxes | $ | 1,999,147 | 1,097,733 | 788,627 | 1,712,966 | (70,766) | 5,527,707 | 509,461 | (50,651) | (209,788) | 5,202,304 |
(1)Primarily represent costs of operations at the Company's corporate headquarters in Miami. These operations include the Company's executive offices, information technology, treasury, corporate accounting and tax, legal, internal audit and human resources. Also included are property expenses related to the leases of corporate offices, data processing, general corporate expenses and charitable foundation contributions to the Lennar Foundation. These corporate expenses cannot be attributed to any specific segment, thus they are presented within the Total column in the table above.
(2)Homebuilding other income (expense), net and other gains (losses), net included a one-time loss of $156.1 million on the Millrose Exchange Offer for the year ended November 30, 2025. Other income (expense), net and other gains (losses), net for Lennar Other included a $46.5 million one-time gain on the sale of a technology investment for the year ended November 30, 2024. Other income
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(expense), net and other gains (losses), net for Lennar Other included $65.0 million write-off of one of the Company's non-public technology investments for the year ended November 30, 2023.
(3)The Other segment includes operating results from the Company's Urban divisions, which are not considered reportable segments.
Financial information relating to the Company’s homebuilding segments was as follows:
| For the Year Ended November 30, 2025 | ||||||||||||||||||||
| (In thousands) | East | Central | South Central | West | Other | Total | ||||||||||||||
| Interest expense | $ | 35,411 | 34,557 | 21,729 | 72,248 | 10,873 | 174,818 | |||||||||||||
| Depreciation and amortization | 27,676 | 30,593 | 11,338 | 57,211 | 14,209 | 141,027 | ||||||||||||||
| Net additions to operating properties and equipment | 297 | 2,854 | 1,742 | 9,883 | 69,252 | 84,028 | ||||||||||||||
| For the Year Ended November 30, 2024 | ||||||||||||||||||||
| (In thousands) | East | Central | South Central | West | Other | Total | ||||||||||||||
| Interest expense | $ | 38,992 | 29,978 | 13,967 | 84,609 | 12,446 | 179,992 | |||||||||||||
| Depreciation and amortization | 30,823 | 29,036 | 10,623 | 58,368 | 346 | 129,196 | ||||||||||||||
| Net additions to operating properties and equipment | 688 | 3,659 | 2,049 | 3,798 | 54,202 | 64,396 | ||||||||||||||
| For the Year Ended November 30, 2023 | ||||||||||||||||||||
| (In thousands) | East | Central | South Central | West | Other | Total | ||||||||||||||
| Interest expense | $ | 54,099 | 47,673 | 29,754 | 115,600 | 10,467 | 257,593 | |||||||||||||
| Depreciation and amortization | 32,773 | 27,593 | 10,227 | 62,374 | 286 | 133,253 | ||||||||||||||
| Net additions to operating properties and equipment | 569 | 1,599 | 679 | 1,176 | 45,754 | 49,777 | ||||||||||||||
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. The Financial Services segment sells substantially all of the loans it originates within a short period of time in the secondary mortgage market, the majority of which are sold 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. 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 November 30, 2025, 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: | |||||||||||||||||||||||
| March 2026 | $ | 250,000 | 250,000 | 500,000 | |||||||||||||||||||
| May 2026 | 250,000 | 450,000 | 700,000 | ||||||||||||||||||||
| July 2026 | 100,000 | 100,000 | 200,000 | ||||||||||||||||||||
| September 2026 | 500,000 | 500,000 | 1,000,000 | ||||||||||||||||||||
| November 2026 | 100,000 | 400,000 | 500,000 | ||||||||||||||||||||
| December 2026 | — | 375,000 | 375,000 | ||||||||||||||||||||
| Total residential facilities | $ | 1,200,000 | 2,075,000 | 3,275,000 | |||||||||||||||||||
| LMF commercial facilities maturing: | |||||||||||||||||||||||
| December 2025 (1) | 200,000 | — | 200,000 | ||||||||||||||||||||
| January 2026 | 100,000 | — | 100,000 | ||||||||||||||||||||
| Total LMF commercial facilities | $ | 300,000 | — | 300,000 | |||||||||||||||||||
| Total | $ | 3,575,000 |
(1)Subsequent to November 30, 2025, the maturity date was extended to December 2027.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Financial Services segment uses the 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:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Borrowings under residential facilities | $ | 1,653,484 | 1,776,045 | ||||||||
| Collateral under residential facilities | 1,718,338 | 1,837,833 | |||||||||
| Borrowings under LMF Commercial facilities | 13,719 | 28,747 |
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 and seeking to have to have the Company buy back
mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold. 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 market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving repurchase claims exceed the Company’s expectations, additional recourse expense may be incurred. The provision for loan losses was immaterial for both the years ended November 30, 2025 and 2024. Loan origination liabilities were $17.4 million and $16.7 million, as of November 30, 2025 and 2024, respectively, and included in Financial Services’ liabilities in the Company's consolidated balance sheets.
LMF Commercial - loans held-for-sale
LMF Commercial originated commercial loans as follows:
| For the Years Ended November 30, | |||||||||||
| (Dollars in thousands) | 2025 | 2024 | |||||||||
| Originations (1) | $ | 707,262 | 568,520 | ||||||||
| Sold | $ | 730,564 | 522,647 | ||||||||
| Securitizations | 12 | 13 | |||||||||
(1)During both years ended November 30, 2025 and 2024, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.
Investments held-to-maturity
At November 30, 2025 and 2024, 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 years ended November 30, 2025 and 2024. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Details related to Financial Services' CMBS were as follows:
| At November 30, | |||||||||||
| (Dollars in thousands) | 2025 | 2024 | |||||||||
| Carrying value | $ | 132,868 | 135,646 | ||||||||
| Outstanding debt, net of debt issuance costs | $ | 123,106 | 126,164 | ||||||||
| Incurred interest rate | 3.4 | % | 3.4 | % |
| At November 30, 2025 | |||||||||||
| Range | |||||||||||
| 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 and construction 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, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and from management and promote fees generated from funds and 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 (losses) from unconsolidated entities and other income (expense), net and other gains (losses), net, which includes proceeds of sales of investments.
Lennar Other
Lennar Other includes strategic investments in various types of technology and other 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 (losses) 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 several publicly traded technology companies, 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.
During the year ended November 30, 2025, the Company recorded mark-to-market gains of $130.2 million on its publicly traded technology companies and other assets, which were included in Lennar Other gains (losses) in the Company's consolidated statements of operations and comprehensive income (loss). During the year ended November 30, 2024, there was a $46.5 million one-time realized gain on the sale of a technology investment that was included in other income (expense), net and other gains (losses) on the Company's consolidated statements of operations and comprehensive income. During the year ended November 30, 2023, the Company wrote off $65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses), net in the Company’s consolidated statements of operations and comprehensive income (loss).
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. Investments in Unconsolidated Entities
Homebuilding Unconsolidated Entities
The investments in the Company's Homebuilding unconsolidated entities were as follows:
| At November 30, | ||||||||||||||
| (In thousands) | 2025 | 2024 | ||||||||||||
| Investments in unconsolidated entities (1) (2) | $ | 1,545,370 | 1,344,836 | |||||||||||
| Underlying equity in unconsolidated entities' net assets (2) | 1,790,697 | 1,636,307 |
(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 November 30, 2025 and 2024, the carrying amount of the Company's investment was $585.2 million and $470.8 million, respectively.
The Company’s partners generally are unrelated homebuilders, land owners/developers and financial or other strategic partners. The unconsolidated entities follow accounting principles that are in all material respects the same as those used by the Company. The Company shares in the profits and losses of these unconsolidated entities generally in accordance with its ownership interests. In many instances, the Company is appointed as the day-to-day manager under the direction of a management committee that has shared powers among the partners of the unconsolidated entities and the Company receives management fees and/or reimbursement of expenses for performing this function. The Company and/or its partners sometimes obtain options or enter into other arrangements under which the Company can purchase portions of the land held by the unconsolidated entities. Option prices are generally negotiated prices that approximate fair value when the Company receives the options. The details of the activity was as follows:
| For the Years Ended November 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Land sales revenues (1) | $ | 247,025 | 192,237 | 222,200 | |||||||||||||
| Management fees and reimbursement of expenses, net of deferrals | 19,753 | 12,969 | 16,306 |
(1)The Company does not include in its Homebuilding equity in earnings (losses) from unconsolidated entities its pro-rata share of unconsolidated entities’ earnings (losses) resulting from land sales to the Company's homebuilding divisions. Instead, the Company accounts for those earnings as a reduction of the cost of purchasing the land from the unconsolidated entities. This in effect defers recognition of the Company’s share of the unconsolidated entities’ earnings related to these sales until the Company delivers a home and title passes to a third-party homebuyer.
The total debt of the Homebuilding unconsolidated entities in which the Company has investments was $1.4 billion and $1.3 billion as of November 30, 2025 and 2024, respectively, of which the Company's maximum recourse exposure was $30.1 million and $44.2 million as of November 30, 2025 and 2024, respectively. In most instances in which the Company has guaranteed debt of an unconsolidated entity, the Company’s partners have also guaranteed that debt and are required to contribute their share of the guarantee payments. In a repayment guarantee, the Company and its venture partners guarantee repayment of a portion or all of the debt in the event of default before the lender would have to exercise its rights against the collateral. The maintenance guarantees only apply if the value of the collateral (generally land and improvements) is less than a specified percentage of the loan balance. The Company would be required to make a payment under a maintenance guarantee to bring the value of the collateral above the specified percentage of the loan balance. In a completion guarantee, the Company and its venture partners have been required to give guarantees of completion to the lenders. Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained. As of November 30, 2025 and 2024, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $511.9 million and $287.0 million, respectively.
If the Company is required to make a payment under any guarantee, the payment would generally constitute a capital contribution or loan to the Homebuilding unconsolidated entity and increase the Company's investment in the unconsolidated entity and its share of any funds the entity distributes.
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 November 30, 2025 and 2024, the fair values of the repayment guarantees, maintenance guarantees and completion guarantees were immaterial. The Company believes that as of November 30, 2025, 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
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 5 of the Notes to Consolidated Financial Statements).
The Upward America Venture LP ("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 could raise equity commitments totaling $1.0 billion. The commitments are primarily from institutional investors, including $78.1 million committed by The Company. As of November 30, 2025 and 2024, the carrying amount of the Company's investment in Upward America was $13.8 million and $20.8 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) 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. 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 increase the Company's investment in the entities and would increase its share of funds the entities distribute to the Company after the achievement of certain thresholds. As of both November 30, 2025 and 2024, the fair value of the completion guarantees was immaterial. As of November 30, 2025 and 2024, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $798.1 million and $907.8 million, respectively. The decrease in the non-recourse debt with completion guarantees was due to completion of projects and sale of joint ventures' rental operation projects and investments in various rental projects.
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:
| For the Years Ended November 30, | ||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| General contractor services, net of deferrals | $ | 149,987 | 302,712 | 494,630 | ||||||||||||||||
| General contractor costs | 145,835 | 286,991 | 471,676 | |||||||||||||||||
| Land sales to joint ventures | 162,447 | 36,237 | — | |||||||||||||||||
| Management fee income, net of deferrals | 23,691 | 49,419 | 67,901 |
The Multifamily segment includes managing and investing in Multifamily Venture Fund I ("LMV I"), Multifamily Venture Fund II LP ("LMV II"), Canada Pension Plan Investments Fund (the "CPPIB Fund") and a new joint venture with an institutional investor (the "Institutional JV"), which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets. 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 November 30, 2025, the Company has a $28.0 million investment in the CPPIB Fund. Additional dollars will be committed as opportunities are identified by the CPPIB Fund. During the year ended November 30, 2025, the Multifamily segment completed the closing of the Institutional JV. The Multifamily segment expects the Institutional JV to acquire certain portfolio assets and invest additional capital to support pipeline opportunities. The Company's stated ownership percentage in the Institutional JV is 10%. As of November 30, 2025, the Company holds a $48.0 million investment in the Institutional JV.
In December 2025, the Company sold a majority interest in Quarterra Group, Inc ("Quarterra"), a subsidiary of the Multifamily segment, to TPG Real Estate (“TPG”), thus retaining a minority interest. TPG’s acquisition of Quarterra and its $1.0 billion strategic commitment, combined with Lennar’s insights, will accelerate Quarterra’s development pipeline and strengthen its platform for delivering thoughtfully designed rental communities in high-growth markets. The sale of Quarterra to TPG did not have a material impact on the Company's consolidated financial statements.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Details of LMV I and LMV II and the Institutional JV are included below:
| At November 30, 2025 | |||||||||||
| (In thousands) | LMV I | LMV II | |||||||||
| Lennar's carrying value of investments | $ | 107,475 | 198,127 | ||||||||
| Equity commitments | 2,204,016 | 1,257,700 | |||||||||
| Equity commitments called | 2,154,328 | 1,229,585 | |||||||||
| Lennar's equity commitments | 504,016 | 381,000 | |||||||||
| Lennar's equity commitments called | 500,381 | 371,492 | |||||||||
| Lennar's remaining commitments (1) | 3,635 | 9,508 | |||||||||
| Distributions to Lennar during the year ended November 30, 2025 | 19,690 | 770 |
(1)While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.
During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects as the fund has come to the end of its contractual life. During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers. During the year ended November 30, 2025, two additional LMV I rental operation projects were sold to third-party buyers.
Lennar 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 Company's investment in the Rialto funds totaled $133.0 million and $140.1 million as of November 30, 2025 and 2024, 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 $235.0 million and $239.3 million, as of November 30, 2025 and 2024, respectively. During the year ended November 30, 2024, there was a $46.5 million one-time realized gain on the sale of a technology investment that was included in other income (expense), net and other gains (losses), net on the Company's consolidated statements of operations and comprehensive income (loss).
Condensed Financial Information of Unconsolidated Entities
Summarized condensed financial information on a combined 100% basis related to the Company's unconsolidated entities that are accounted for under the equity method, of which the Company's investments in unconsolidated entities were $2.4 billion and $2.2 billion as of November 30, 2025 and 2024, respectively. Financial information relating to the Company’s unconsolidated entities was as follows:
| Balance Sheets | |||||||||||||||||||||||||||||
| (In thousands) | At November 30, 2025 | ||||||||||||||||||||||||||||
| Assets: | Homebuilding | Multifamily | Lennar Other | Total | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 585,607 | 196,367 | 18,258 | 800,232 | ||||||||||||||||||||||||
| Loans receivable | — | — | 1,254 | 1,254 | |||||||||||||||||||||||||
| Real estate owned | — | — | 30,449 | 30,449 | |||||||||||||||||||||||||
| Investment securities | — | — | 2,024,028 | 2,024,028 | |||||||||||||||||||||||||
| Investments in partnerships | — | — | 80,567 | 80,567 | |||||||||||||||||||||||||
| Inventories | 5,386,966 | — | — | 5,386,966 | |||||||||||||||||||||||||
| Operating properties and equipment | 37,007 | 4,672,346 | — | 4,709,353 | |||||||||||||||||||||||||
| Other assets | 957,536 | 746,961 | 7,835 | 1,712,332 | |||||||||||||||||||||||||
| $ | 6,967,116 | 5,615,674 | 2,162,391 | 14,745,181 | |||||||||||||||||||||||||
| Liabilities and equity: | |||||||||||||||||||||||||||||
| Accounts payable and other liabilities | $ | 744,238 | 130,028 | 2,914 | 877,180 | ||||||||||||||||||||||||
| Debt (1) | 1,429,584 | 2,523,460 | 139,470 | 4,092,514 | |||||||||||||||||||||||||
| Equity | 4,793,294 | 2,962,186 | 2,020,007 | 9,775,487 | |||||||||||||||||||||||||
| $ | 6,967,116 | 5,615,674 | 2,162,391 | 14,745,181 | |||||||||||||||||||||||||
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
| (In thousands) | At November 30, 2024 | ||||||||||||||||||||||||||||
| Assets: | Homebuilding | Multifamily | Lennar Other | Total | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 410,948 | 323,389 | 95,735 | 830,072 | ||||||||||||||||||||||||
| Loans receivable | — | — | 11,884 | 11,884 | |||||||||||||||||||||||||
| Real estate owned | — | — | 50,621 | 50,621 | |||||||||||||||||||||||||
| Investment securities | — | — | 2,102,204 | 2,102,204 | |||||||||||||||||||||||||
| Investments in partnerships | — | — | 94,183 | 94,183 | |||||||||||||||||||||||||
| Inventories | 5,501,970 | — | — | 5,501,970 | |||||||||||||||||||||||||
| Operating properties and equipment | 37,516 | 4,988,704 | — | 5,026,220 | |||||||||||||||||||||||||
| Other assets | 1,282,274 | 821,201 | 102,879 | 2,206,354 | |||||||||||||||||||||||||
| $ | 7,232,708 | 6,133,294 | 2,457,506 | 15,823,508 | |||||||||||||||||||||||||
| Liabilities and equity: | |||||||||||||||||||||||||||||
| Accounts payable and other liabilities | $ | 979,910 | 140,000 | 114,244 | 1,234,154 | ||||||||||||||||||||||||
| Debt (1) | 1,318,759 | 2,905,913 | 295,825 | 4,520,497 | |||||||||||||||||||||||||
| Equity | 4,934,039 | 3,087,381 | 2,047,437 | 10,068,857 | |||||||||||||||||||||||||
| $ | 7,232,708 | 6,133,294 | 2,457,506 | 15,823,508 | |||||||||||||||||||||||||
(1)Debt noted above is net of debt issuance costs. As of November 30, 2025 and 2024, this includes $15.4 million and $3.2 million, respectively, for Homebuilding, $24.9 million and $16.1 million, respectively, for Multifamily and an immaterial amount of debt issuance costs for Lennar Other.
| Statements of Operations (In thousands) Years Ended: | Revenues | Costs and expenses | Other income (expense), net (1) | Net earnings (losses) of unconsolidated entities | Equity in earnings (losses) from unconsolidated entities | ||||||||||||||||||||||||
| November 30, 2025 | $ | 1,354,606 | 1,328,484 | 230,660 | 256,782 | 78,225 | |||||||||||||||||||||||
| November 30, 2024 | 1,719,012 | 1,841,128 | 608,145 | 486,029 | 164,099 | ||||||||||||||||||||||||
| November 30, 2023 | 1,857,757 | 2,160,564 | (563,222) | (866,029) | (144,610) | ||||||||||||||||||||||||
(1)Other income (expense), net included realized and unrealized gains (losses) on investments.
5. Homebuilding Senior Notes and Other Debts Payable
| At November 30, | |||||||||||
| (Dollars in thousands) | 2025 | 2024 | |||||||||
| Unsecured delayed draw term loan facility due 2028 | $ | 1,710,000 | — | ||||||||
| 5.25% senior notes due 2026 | 400,608 | 401,824 | |||||||||
| 5.00% senior notes due 2027 | 350,590 | 350,974 | |||||||||
| 4.75% senior notes due 2027 | 698,845 | 698,266 | |||||||||
| 5.20% senior notes due 2030 | 694,165 | — | |||||||||
| 4.75% senior notes due 2025 | — | 499,779 | |||||||||
| Mortgage notes on land and other debt | 230,478 | 307,440 | |||||||||
| Total | $ | 4,084,686 | 2,258,283 |
The carrying amounts of the senior notes in the table above are net of debt issuance costs of $7.0 million and $2.4 million, as of November 30, 2025 and 2024, respectively.
In May 2025, the Company issued $700 million in aggregate principal amount of 5.20% senior notes due 2030 (the "5.20% senior notes") at a price of 99.969% of the principal amount. Proceeds from the offering, after payment of expenses, totaled $695.6 million. The 5.20% Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries. Interest on the 5.20% Senior Notes is due semi-annually beginning January 30, 2026.
The Company utilized the net proceeds from the sale of the 5.20% senior notes primarily to pay off $500 million aggregate principal amount of its 4.75% senior notes due May 2025. The redemption price, which was paid in cash, was 100% of the principal amount outstanding.
In May 2025, the Company also entered into a new unsecured delayed draw term loan facility with an initial committed borrowing availability of approximately $1.6 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $500 million via an accordion feature. In July 2025, the total commitment under the Delayed Draw Term Loan
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Facility was increased by $100 million, thereby increasing the borrowing available capacity to $1.7 billion. The credit agreement governing the Company’s new unsecured Delayed Draw Term Loan Facility permits the Company to draw up to six times in the first 180 days after the effective date of the credit agreement. Once drawn, the Company may at any time prepay the loan, in whole or in part, without premium or penalty. The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at the Company’s discretion, it can be extended for an additional year until May 2029, subject to the satisfaction of certain conditions. Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin. As of November 30, 2025, the Company had outstanding borrowings of $1.7 billion under the credit agreement governing its new unsecured Delayed Draw Term Loan Facility.
In November 2024, the Company amended and restated the credit agreement governing its unsecured revolving credit facility (the "Credit Facility"). In the first quarter of 2025, the Company received an additional $150 million in commitments. In the third quarter of 2025, the Company secured an additional $100 million in commitments. The maximum available borrowings on the Credit Facility were as follows:
| (In thousands) | At November 30, 2025 | |||||||
| Commitments - maturing in May 2027 | $ | 225,000 | ||||||
| Commitments - maturing in November 2029 | 2,900,000 | |||||||
| Total commitments | $ | 3,125,000 | ||||||
| Accordion feature | 375,000 | |||||||
| Total maximum borrowings capacity | $ | 3,500,000 |
The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes. The credit agreement also provides that up to $477.5 million in commitments may be used for letters of credit. As of both November 30, 2025 and 2024, the Company had no outstanding borrowings under the Credit Facility. Under the Credit Facility agreement, the Company is required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio. These ratios are calculated per the Credit Facility agreement, which involves adjustments to GAAP financial measures. The Company believes it was in compliance with its debt covenants at November 30, 2025. In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions.
Performance letters of credit are generally posted with regulatory bodies to guarantee the Company’s performance of certain development and construction activities. Financial letters of credit are generally posted in lieu of cash deposits on option contracts, for insurance risks, credit enhancements and as other collateral. Additionally, at November 30, 2025, the Company had outstanding surety bonds including performance surety bonds related to site improvements at various projects (including certain projects of the Company’s joint ventures) and financial surety bonds. Although significant development and construction activities have been completed related to these site improvements, these bonds are generally not released until all development and construction activities are completed. The Company does not presently anticipate any draws upon these bonds or letters of credit, but if any such draws occur, the Company does not believe they would have a material effect on its financial position, results of operations or cash flows.
The Company's outstanding letters of credit and surety bonds are below:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Performance letters of credit | $ | 1,963,643 | 1,668,061 | ||||||||
| Financial letters of credit | 926,304 | 745,578 | |||||||||
| Surety bonds | 5,614,807 | 5,140,432 | |||||||||
| Anticipated future costs primarily for site improvements related to performance surety bonds | 3,056,582 | 2,766,088 |
The terms of each of the Company's senior notes outstanding at November 30, 2025 were as follows:
| Senior Notes Outstanding (1) | Principal Amount | Net Proceeds (2) | Price | Date Issued | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| 5.25% senior notes due 2026 | 400,000 | (3) | (3) | (3) | ||||||||||||||||||||||
| 5.00% senior notes due 2027 | 350,000 | (3) | (3) | (3) | ||||||||||||||||||||||
| 4.75% senior notes due 2027 (4) | 900,000 | 894,650 | 100 | % | November 2017 | |||||||||||||||||||||
| 5.20% senior notes due 2030 | 700,000 | 695,583 | 99.969 | % | May 2025 |
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1)Interest is payable semi-annually for each of the series of senior notes. The senior notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.
(2)The Company generally has historically used the net proceeds for working capital and general corporate purposes, which can include the repayment or repurchase of other outstanding senior notes.
(3)These notes represent obligations of CalAtlantic when it was acquired that were subsequently exchanged in part for the notes of the Company. As part of the purchase accounting, the senior notes have been recorded at their fair value as of the date of acquisition (February 12, 2018).
(4)As of November 30, 2025, the principal amount remaining to be paid upon maturity was $700 million.
The Company's outstanding senior notes are guaranteed by certain of its wholly-owned subsidiaries, which are primarily homebuilding subsidiaries. These guarantees are full and unconditional. The guarantors of the Company's senior notes are currently those subsidiaries that also guarantee Lennar Corporation's letter of credit facilities, its Credit Facility and Delayed Draw Term Loan Facility. Under the indentures governing the Company's senior notes, guarantees may be suspended or released under certain circumstances.
The terms of the Company's mortgage on land and other debt at November 30, 2025 were as follows:
| At November 30, | Various Maturity Dates Through | Interest Rates Up To | Average Interest Rate | |||||||||||||||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | ||||||||||||||||||||||||||||||
| Carrying value | $ | 230,478 | 307,440 | 2031 | 7.5% | 4.8% | ||||||||||||||||||||||||||
| Retired during the year | 57,860 | 46,005 |
The minimum aggregate principal maturities of Delayed Draw Term Loan Facility, Homebuilding senior notes and other debts payable during the five years subsequent to November 30, 2025 and thereafter are as follows:
| (In thousands) | Debt Maturities | ||||
| 2026 | $ | 453,064 | |||
| 2027 | 1,191,758 | ||||
| 2028 | 1,720,214 | ||||
| 2029 | 11,463 | ||||
| 2030 | 702,196 | ||||
| Thereafter | 11,782 |
The Company expects to pay its near-term maturities as they come due through either cash generated from operations, the issuance of additional debt or equity offerings or borrowings under the Company's Credit Facility.
6. Income Taxes
The provision for income taxes consisted of the following:
| For the Years Ended November 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | 473,890 | 863,867 | 1,037,229 | |||||||||||||
| State | 154,378 | 292,960 | 271,752 | ||||||||||||||
| $ | 628,268 | 1,156,827 | 1,308,981 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | $ | 61,885 | 48,080 | (53,474) | |||||||||||||
| State | 15,410 | 12,346 | (14,494) | ||||||||||||||
| 77,295 | 60,426 | (67,968) | |||||||||||||||
| $ | 705,563 | 1,217,253 | 1,241,013 |
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A reconciliation of the statutory rate and the effective tax rate was as follows:
| Percentage of Pretax Income | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Statutory rate | 21.00 | % | 21.00 | % | 21.00 | % | |||||||||||
| State income taxes, net of federal income tax benefit | 4.94 | 4.74 | 4.09 | ||||||||||||||
| Tax credits | (1.87) | (1.85) | (1.48) | ||||||||||||||
| Tax reserves and interest expense, net | — | (0.01) | — | ||||||||||||||
| Deferred tax asset valuation allowance, net | — | — | (0.01) | ||||||||||||||
| Other | 0.10 | (0.24) | 0.36 | ||||||||||||||
| Non-deductible loss on Millrose Properties, Inc. exchange offer | 1.18 | — | — | ||||||||||||||
| Effective rate | 25.35 | % | 23.64 | % | 23.96 | % |
On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted, introducing various changes to U.S. federal tax law. The Act did not have a material impact on the Company's consolidated financial statements for the year ended November 30, 2025.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of significant temporary differences that give rise to the net deferred tax assets were as follows:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Deferred tax assets: | |||||||||||
| Inventory valuation adjustments | $ | 26,212 | 22,979 | ||||||||
| Reserves and accruals | 188,983 | 198,753 | |||||||||
| Net operating loss carryforwards | 38,245 | 43,894 | |||||||||
| Capitalized expenses | 226,114 | 244,198 | |||||||||
| Investments in unconsolidated entities | 47,505 | 62,395 | |||||||||
| Employee stock incentive plan | 35,734 | 49,655 | |||||||||
| Other assets | 23,347 | 39,011 | |||||||||
| Total deferred tax assets | 586,140 | 660,885 | |||||||||
| Valuation allowance | (2,546) | (2,593) | |||||||||
| Total deferred tax assets after valuation allowance | 583,594 | 658,292 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Capitalized expenses | 175,401 | 170,557 | |||||||||
| Deferred income | 209,642 | 181,145 | |||||||||
| Unrealized gains on investments in equity securities | 33,513 | 5,358 | |||||||||
| Other liabilities | 30,113 | 28,855 | |||||||||
| Total deferred tax liabilities | 448,669 | 385,915 | |||||||||
| Net deferred tax assets | $ | 134,925 | 272,377 |
The detail of the Company's net deferred tax assets (liabilities) was as follows:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Net deferred tax assets: | |||||||||||
| Homebuilding | $ | 48,372 | 146,299 | ||||||||
| Financial Services | 32,085 | 40,738 | |||||||||
| Multifamily | 71,387 | 72,049 | |||||||||
| Lennar Other | (16,919) | 13,291 | |||||||||
| Net deferred tax assets | $ | 134,925 | 272,377 |
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed each reporting period by the Company based on the consideration of all available positive and negative evidence using a "more-likely-than-not" standard with respect to whether deferred tax assets will be realized. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Company’s experience with loss carryforwards not expiring unused and tax planning alternatives.
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Valuation allowance (1) | $ | (2,546) | (2,593) | ||||||||
| Federal tax effected NOL carryforwards (2) | 19,782 | 23,079 | |||||||||
| State tax effected NOL carryforwards (3) | 18,463 | 20,815 |
(1)As of November 30, 2025 and 2024, the deferred tax assets included valuation allowances primarily related to state net operating loss ("NOL") carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states.
(2)As of November 30, 2025 and 2024, the Company had federal tax effected NOL carryforwards that may be carried forward to offset future taxable income and begin to expire in 2030.
(3)As of November 30, 2025 and 2024, the Company had state tax effected NOL carryforwards that may be carried forward from 10 to 20 years or indefinitely, depending on the tax jurisdiction, with certain losses expiring between 2025 and 2041.
The Company had no gross unrecognized tax benefits for the years ended November 30, 2025, 2024, and 2023, respectively.
The following summarizes the changes in interest and penalties accrued with respect to gross unrecognized tax benefits:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Accrued interest and penalties, beginning of the year | $ | — | — | ||||||||
| Interest income from audits and refund claims | (43) | (434) | |||||||||
| Increase (reduction) of interest and penalties | 43 | 434 | |||||||||
| Accrued interest and penalties, end of the year | $ | — | — |
The Company participates in an IRS examination program, the Compliance Assurance Process ("CAP"). This program operates as a contemporaneous exam throughout the year in order to keep exam cycles current and achieve a higher level of compliance. Certain state taxing authorities are examining various fiscal years. The final outcome of these examinations is not yet determinable. The statute of limitations for the Company's major tax jurisdictions remains open for examination for 2020 and subsequent years.
7. Earnings Per Share
Basic and diluted earnings per share were calculated as follows:
| For the Years Ended November 30, | |||||||||||||||||
| (In thousands, except per share amounts) | 2025 | 2024 | 2023 | ||||||||||||||
| Numerator: | |||||||||||||||||
| Net earnings attributable to Lennar | $ | 2,078,179 | 3,932,533 | 3,938,511 | |||||||||||||
| Less: distributed earnings allocated to nonvested shares | 5,072 | 4,980 | 5,514 | ||||||||||||||
| Less: undistributed earnings allocated to nonvested shares | 15,024 | 33,843 | 43,022 | ||||||||||||||
| Numerator for basic and diluted earnings per share | $ | 2,058,083 | 3,893,710 | 3,889,975 | |||||||||||||
| Denominator: | |||||||||||||||||
| Denominator for basic and diluted earnings per share - weighted average common shares outstanding | 257,746 | 272,019 | 283,319 | ||||||||||||||
| Basic and diluted earnings per share | $ | 7.98 | 14.31 | 13.73 | |||||||||||||
For the years ended November 30, 2025, 2024 and 2023, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
8. Financial Instruments and Fair Value Disclosures
The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at November 30, 2025 and 2024, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net, and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.
| At November 30, | |||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||
| Fair Value | Carrying | Fair | Carrying | Fair | |||||||||||||||||||||||||
| (In thousands) | Hierarchy | Amount | Value | Amount | Value | ||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||||||||
| Loans held-for-investment, net (1) | Level 3 | $ | — | — | 60,969 | 61,044 | |||||||||||||||||||||||
| Loan held-for-sale (1) | Level 3 | 15,547 | 15,547 | — | — | ||||||||||||||||||||||||
| Investments held-to-maturity | Level 3 | 132,868 | 132,032 | 135,646 | 138,160 | ||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Homebuilding senior notes and other debt payable, net | Level 2 | $ | 4,084,686 | 4,122,169 | 2,258,283 | 2,264,375 | |||||||||||||||||||||||
| Financial Services notes and other debt payable, net | Level 2 | 1,790,309 | 1,790,789 | 1,930,956 | 1,931,515 | ||||||||||||||||||||||||
(1)During the year ended November 30, 2025, loans held-for-investment of $61.0 million (fair value of $50.3 million) were transferred to loans held-for-sale, based on the Company's intent to sell the loans in the near future.
The following methods and assumptions are used by the Company in estimating fair values:
Financial Services - The fair values above are based on quoted market prices, if available. The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. The fair value of residential loans held-for-sale for which there is no active market for similar mortgage loans is determined using an independent third-party valuation that uses a discounted cash flow model to estimate fair value and is categorized as Level 3. The key assumptions used in the model, which are generally unobservable inputs, are mortgage prepayment rates, default rates, loss severity rates, and discount rates. Loans held-for-sale are carried at the lower of cost or fair value. For notes and other debt payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings.
Homebuilding - For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates.
Fair Value Measurements
GAAP provides a framework for measuring fair value, expands disclosures about fair value measurements and establishes a fair value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows:
Level 1: Fair value determined based on quoted prices in active markets for identical assets.
Level 2: Fair value determined using significant other observable inputs.
Level 3: Fair value determined using significant unobservable inputs.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
| Fair Value at November 30, | |||||||||||||||||
| (In thousands) | Fair Value Hierarchy | 2025 | 2024 | ||||||||||||||
| Financial Services Assets: | |||||||||||||||||
| Residential loans held-for-sale | Level 2 | $ | 2,170,677 | 2,200,402 | |||||||||||||
| LMF Commercial loans held-for-sale | Level 3 | 26,401 | 50,316 | ||||||||||||||
| Mortgage servicing rights | Level 3 | 3,266 | 3,463 | ||||||||||||||
| Lennar Other Assets: | |||||||||||||||||
| Investments in equity securities | Level 1 | 232,372 | 204,777 | ||||||||||||||
| Investments available-for-sale | Level 3 | 39,060 | 40,578 |
Residential and LMF Commercial loans held-for-sale in the table above include:
| At November 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (In thousands) | Aggregate Principal Balance | Change in Fair Value | Aggregate Principal Balance | Change in Fair Value | |||||||||||||||||||||||||||||||
| Residential loans held-for-sale | $ | 2,206,966 | (36,289) | 2,263,310 | (62,907) | ||||||||||||||||||||||||||||||
| LMF Commercial loans held-for-sale | 26,525 | (124) | 50,020 | 296 |
The estimated fair values of the Company’s financial instruments have been determined by using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The following methods and assumptions are used by the Company in estimating fair values:
Financial Services residential loans held-for-sale - The fair value of residential loans held-for-sale that trade in active secondary markets is determined based upon quoted market prices for similar mortgage loans, adjusted for credit risk and other loan characteristics, and is categorized as Level 2. The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower. The fair value of these are included in Financial Services’ loans held-for-sale as of November 30, 2025 and 2024. Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.
LMF Commercial loans held-for-sale - The fair value of commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan. While the cash payments on the loans are contractual, the discount rate used and assumptions regarding the relative size of each class in the CMBS capital structure can significantly impact the valuation. Therefore, the estimates used could differ materially from the fair value determined when the loans are sold to a securitization trust.
Mortgage servicing rights - Financial Services records mortgage servicing rights when it sells loans on a servicing-retained basis or through the acquisition or assumption of the right to service a financial asset. The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below:
| November 30, 2025 | |||||
| Unobservable inputs | |||||
| Mortgage prepayment rate | 9% | ||||
| Discount rate | 13% | ||||
| Delinquency rate | 11% |
Lennar Other investments in equity securities - The fair value of investments in equity securities was calculated based on independent quoted market prices. The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other unrealized gains (losses) from technology investments on the Company’s consolidated statements of operations and comprehensive income (loss).
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality. Loan values are calculated by allocating the change in value of an assumed CMBS capital structure to each loan. The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads.
The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:
| For the Years Ended November 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Changes in fair value included in Financial Services revenues: | |||||||||||||||||
| Loans held-for-sale | $ | 26,618 | (52,482) | (26,658) | |||||||||||||
| Mortgage loan commitments | 19,930 | (44,106) | 1,016 | ||||||||||||||
| Forward contracts | 9,346 | 61,270 | (28,431) | ||||||||||||||
| Changes in fair value included in Lennar Other gains (losses) from technology investments: | |||||||||||||||||
| Investments in equity securities and other assets | $ | 130,166 | 25,180 | (50,162) | |||||||||||||
| Changes in fair value included in other comprehensive income (loss), net of tax: | |||||||||||||||||
| Lennar Other investments available-for-sale | $ | (1,518) | 2,650 | 2,471 | |||||||||||||
Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations.
The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment:
| For the Years Ended November 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (In thousands) | Mortgage servicing rights | LMF Commercial loans held-for-sale | Mortgage servicing rights | LMF Commercial loans held-for-sale | |||||||||||||||||||||||||||||||
| Beginning balance | $ | 3,463 | 50,316 | 3,440 | 13,459 | ||||||||||||||||||||||||||||||
| Purchases/loan originations | 408 | 707,262 | 463 | 568,520 | |||||||||||||||||||||||||||||||
| Sales/loan originations sold, including those not settled | — | (730,564) | — | (522,647) | |||||||||||||||||||||||||||||||
| Disposals/settlements (1) | (332) | — | (261) | (9,500) | |||||||||||||||||||||||||||||||
| Changes in fair value (2) | (273) | (124) | (179) | 296 | |||||||||||||||||||||||||||||||
| Interest and principal paydowns | — | (489) | — | 188 | |||||||||||||||||||||||||||||||
| Ending balance | $ | 3,266 | 26,401 | 3,463 | 50,316 |
(1)LMF Commercial includes $9.5 million of loans that was converted to loans held-for-sale during the year ended November 30, 2024.
(2)Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs. The fair values included in the table below represent only those assets whose carrying values were adjusted to fair value during the respective periods disclosed. The assets measured at fair value on a nonrecurring basis are summarized below:
| For the Years Ended November 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands) | Fair Value Hierarchy | Carrying Value | Fair Value | Total Losses, Net (1) | Carrying Value | Fair Value | Total Losses, Net (1) | Carrying Value | Fair Value | Total Losses, Net (1) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Homebuilding - non-financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Finished homes and construction in progress (2) | Level 3 | $ | 1,817,075 | 1,631,871 | (185,204) | 516,081 | 467,946 | (48,135) | 458,569 | 396,795 | (61,774) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Land and land under development (2) | Level 3 | 4,891 | — | (4,891) | — | — | — | 52,147 | 49,539 | (2,608) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits and pre-acquisition costs on real estate (3) | Level 3 | 23,082 | — | (23,082) | 5,120 | — | (5,120) | 19,914 | — | (19,914) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Investments in unconsolidated entities (4) | Level 3 | — | — | — | — | — | — | 78,834 | 37,792 | (41,042) | |||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Services - financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan held-for-sale (5) | Level 3 | 17,660 | 15,547 | (2,113) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Multifamily - non-financial assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Land and land under development (6) | Level 3 | $ | — | — | — | 139,980 | 49,970 | (90,010) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Investments in unconsolidated entities (7) | Level 3 | 23,216 | — | (23,216) | 24,753 | — | (24,753) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
(1)Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods.
(2)Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses in the Company's consolidated financial statements.
(3)Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's consolidated statements of operations and comprehensive income (loss).
(4)Valuation adjustments related to Homebuilding investments in unconsolidated entities were primarily included in other income (expense), net and other gains (losses), net in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2023.
(5)Changes in fair value below amortized cost basis are recognized through a valuation allowance, with the adjustment included in Financial Services earnings in the Company's consolidated financial statements.
(6)Valuation adjustments for land and land under development were included in Multifamily costs and expenses.
(7)Valuation adjustments related to Multifamily investments in unconsolidated entities were included in other income (expense), net and other gains (losses), net in the Company's consolidated statements of operations and comprehensive income (loss) for the years ended November 30, 2025 and 2024.
During the year ended November 30, 2025, the Company wrote off $33.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses), net in the Company’s consolidated statements of operations and comprehensive income (loss). During the year ended November 30, 2023, the Company wrote off $65.0 million relating to one of the Company's non-public technology cost method investments which was recorded in Other income (expense), net and other gains (losses), net in the Company’s consolidated statements of operations and comprehensive income (loss).
See Note 1 for a detailed description of the Company’s process for identifying and recording valuation adjustments related to Homebuilding inventory and investments in unconsolidated entities.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
9. Variable Interest Entities
During the year ended November 30, 2025, the Company evaluated the joint venture ("JV") agreements of its JV's that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements. Based on the Company's evaluation, there were no VIEs that were consolidated during the year ended November 30, 2025. During the year ended November 30, 2025, the Company deconsolidated two VIEs that had total assets and liabilities of $412.4 million and $100.1 million, respectively.
The carrying amount of the Company's consolidated VIE's assets and non-recourse liabilities are disclosed in the footnotes to the consolidated balance sheets.
A VIE’s assets can only be used to settle obligations of that VIE. The VIEs are not guarantors of the Company’s senior notes or other debts payable. The assets held by a VIE are usually collateral for that VIE’s debt. The Company and other partners do not generally have an obligation to make capital contributions to a VIE unless the Company and/or the other partner(s) have entered into debt guarantees with VIE’s lenders. Other than debt guarantee agreements with VIE’s lenders, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to a VIE. While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts, but that would require forfeiture of deposits and pre-acquisition costs.
Unconsolidated VIEs
The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows:
| At November 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (In thousands) | Investments in Unconsolidated VIEs | Lennar’s Maximum Exposure to Loss | Investments in Unconsolidated VIEs | Lennar’s Maximum Exposure to Loss | |||||||||||||||||||
| Homebuilding (1) | $ | 824,241 | 861,679 | 802,901 | 876,035 | ||||||||||||||||||
| Multifamily (2) | 167,873 | 169,364 | 136,158 | 140,120 | |||||||||||||||||||
| Financial Services (3) | 135,396 | 135,396 | 135,646 | 135,646 | |||||||||||||||||||
| Lennar Other (4) | 105,151 | 105,151 | 119,258 | 119,258 | |||||||||||||||||||
| Total | $ | 1,232,661 | 1,271,590 | 1,193,963 | 1,271,059 |
(1)As of November 30, 2025 and 2024, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs. In addition, as of November 30, 2025 and 2024, there was recourse debt of VIEs of $30.1 million and $44.2 million, respectively.
(2)As of November 30, 2025 and 2024, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs.
(3)As of both November 30, 2025 and 2024, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and primarily related to the Financial Services' CMBS held-to-maturity investments.
(4)At November 30, 2025 and 2024, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.
The Company and its JV partners generally fund JVs as needed and in accordance with business plans to allow the entities to finance their activities. Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of November 30, 2025 in accordance with ASC 810 due to insufficient equity at risk. While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents. While the Company generally manages the day-to-day operations of the VIEs, each of these VIEs has an executive committee made up of representatives from each partner. The members of the executive committee have equal votes and major decisions require unanimous consent and approval from all members. The Company does not have the unilateral ability to exercise participating voting rights without partner consent.
There are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the VIEs. Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs.
Option Contracts
The Company evaluates option contracts with third party land holding companies for land to determine whether they are VIEs and, if so, whether the Company is the primary beneficiary of certain of these option contracts. Although the
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land, it may need to consolidate the land under option at the purchase price of the optioned land. As of November 30, 2025, land under option with third parties that the Company was compelled to takedown was $984.4 million, of which $275.4 million were land purchase contract obligations due to land banks upon maturity of the contracts. The Company’s intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks. Land under option with third parties is included in consolidated inventory not owned. Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $712.0 million as of November 30, 2025.
During the year ended November 30, 2025, consolidated inventory not owned decreased by $2.4 billion with a $2.1 billion decrease to liabilities related to consolidated inventory not owned in the accompanying consolidated balance sheet as of November 30, 2025. The decrease was primarily due to the reassessment of certain option contracts terms that were amended. This reassessment resulted in a decrease of $2.5 billion of consolidated inventory not owned with a corresponding decrease of $2.3 billion of liabilities related to consolidated inventory not owned. The decrease was partially offset by the consolidation of homesites under option contracts that the Company is compelled to takedown, which resulted in an increase of $663.3 million of consolidated inventory not owned with a corresponding increase of $612.7 million of liabilities related to consolidated inventory not owned. To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying consolidated balance sheet as of November 30, 2025. The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits.
The Company’s exposure to losses on its option contracts with third parties and unconsolidated entities was as follows:
| At November 30, | |||||||||||
| (In thousands) | 2025 | 2024 | |||||||||
| Non-refundable option deposits and pre-acquisition costs on real estate | $ | 6,301,909 | 3,529,889 | ||||||||
| Non-refundable option deposits included in consolidated inventory not owned | 220,025 | 520,731 | |||||||||
| Letters of credit in lieu of cash deposits under certain land and option contracts | 443,277 | 341,834 |
For the year ended November 30, 2025, the Company purchased a significant portion of land from two land banks (the "Land Banks”). There were no amounts due to the Land Banks as of November 30, 2025, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company. As of November 30, 2025, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $2.2 billion, which are included in the corresponding line item presented in the table above. As of November 30, 2025, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $302.6 million and $257.9 million, respectively.
The Company believes there are other land banks that could be substituted should the Land Banks become unavailable or non-competitive with respect to land banking of future land. Thus, the Company does not believe that the loss of the Company’s relationship with these Land Banks would have a material adverse effect on the Company’s business, financial condition or cash flows.
As discussed in Note 2, in February 2025, the Company completed the spin-off of Millrose. The spin-off involved $5.6 billion of land assets, representing approximately 87,000 homesites. The Company entered into a Master Option Agreement ("Agreement") to option the land back from Millrose. As a result of entering into the Agreement with Millrose, the Company paid $584.0 million of option deposits to Millrose at the spin-off. Subsequently, in February 2025, Millrose acquired Rausch’s land assets (except for any homesites with homes under construction which were acquired by the Company) and Lennar paid Millrose an additional $90.4 million in option deposits. As of November 30, 2025, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $1.0 billion.
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
10. Commitments and Contingent Liabilities
The Company is involved in various claims, legal proceedings, and regulatory matters that arise in the ordinary course of business, including, but not limited to, matters related to construction defects, product liability, warranty claims, land use, zoning and permitting issues, environmental matters, contract disputes, employment matters, and other legal matters incidental to its business operations.
The Company follows established accounting standards to identify, evaluate, record, and disclose legal contingencies. A liability is recorded when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not record liabilities for contingencies when the likelihood of loss is remote or if reasonably possible, or when a probable loss cannot be reasonably estimated. If a loss is probable or reasonably possible, the Company discloses the nature of the contingency and, if estimable, the possible range of loss.
In assessing contingencies, management considers, among other factors, the nature of the claim, the status of the matter, the advice of legal counsel, the Company's historical experience with similar matters, insurance coverage, and recoveries, if any, and other relevant facts and circumstances. Estimates of loss contingencies are inherently subjective and involve significant judgment. As a result, actual outcomes may differ materially from amounts recorded or disclosed.
Certain of the Company's legal matters are covered, in whole or in part, by insurance policies subject to applicable retentions, deductibles, and policy limits, as well as through contractual indemnities. Recoveries, if any, are recognized only when realization is considered probable.
As of November 30, 2025, the Company has recorded accruals for loss contingencies that management believes are probable and reasonably estimable. These accruals are included in Other liabilities in the consolidated balance sheets. For these matters as well as for matters for which a loss is reasonably possible but not probable, management believes that any reasonably possible losses, either individually or in the aggregate, would not have a material adverse effect on the Company’s consolidated financial position. However, the ultimate resolution of these matters could have a material effect on the Company’s results of operations or cash flows in a particular period.
The Company cannot predict with certainty the outcome or timing of resolution of its pending matters, and no assurance can be given that the results will not differ from management’s expectations.
Leases
The Company has entered into agreements to lease certain office facilities and equipment under operating leases. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Right-of-use ("ROU") assets and lease liabilities are recorded on the balance sheet for all leases, except leases with an initial term of 12 months or less. Many of the Company's leases include options to renew. The exercise of lease renewal options is at the Company's option and therefore renewal option payments have not been included in the ROU assets or lease liabilities. The following table includes additional information about the Company's leases:
| (Dollars in thousands) | At November 30, 2025 | ||||
| Right-of-use assets | $ | 269,011 | |||
| Lease liabilities | $ | 264,157 | |||
| Weighted-average remaining lease term (in years) | 5.4 | ||||
| Weighted-average discount rate | 4.7% |
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The Company has entered into agreements to lease certain office facilities and equipment under operating leases. Future minimum payments under the noncancellable leases in effect at November 30, 2025 were as follows:
| (In thousands) | Lease Payments | ||||
| 2026 | $ | 86,899 | |||
| 2027 | 55,515 | ||||
| 2028 | 40,123 | ||||
| 2029 | 28,709 | ||||
| 2030 | 25,271 | ||||
| Thereafter | 64,809 | ||||
| Total future minimum lease payments (1) | $ | 301,326 | |||
| Less: Interest (2) | 37,169 | ||||
| Present value of lease liabilities (2) | $ | 264,157 |
(1)Total future minimum lease payments exclude variable lease costs of $32.7 million and short-term lease costs of $2.0 million.
(2)The Company's leases do not include a readily determinable implicit rate. As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date. As of November 30, 2025, the Company recognized the lease liabilities on its consolidated balance sheets within accounts payable and other liabilities of the respective segments.
The Company's rental expense on lease liabilities were as follows:
| For the Years Ended November 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Rental expense | $ | 194,522 | 125,621 | 104,653 | |||||||||||||
In December 2023, the Company purchased its corporate headquarters building in which the Company had previously leased office space. This building contains approximately 213,200 square feet of office space, of which the Company leases approximately 53,000 square feet of unused office space to other tenants. On occasion, the Company may sublease other rented space which is no longer used for the Company's operations. For both the years ended November 30, 2025 and 2024, the Company had an immaterial amount of sublease income.
Letters of Credits and Surety Bonds
The Company is committed, under various letters of credit, to perform certain development and construction activities and provide certain guarantees in the normal course of business. The Company also had outstanding surety bonds, including performance bonds related to site improvements at various projects (including certain joint ventures) and financial surety bonds. Although significant development and construction activities have been completed, these bonds are generally not released until all development and construction activities are completed (see Note 5 of the Notes to Consolidated Financial Statements for additional information).
The Company does not presently anticipate any draws upon these letters of credit or surety bonds that would have a material effect on its consolidated financial statements.
Option Agreements
The Company is subject to the usual obligations associated with contractual agreements entered into in routine conduct of its business (including option contracts) for the purchase, development and sale of real estate. The use of option contracts allows the Company to reduce the financial risks associated with long-term land holdings (see Note 9 of the Notes to Consolidated Financial Statements for additional information).
Loan Servicing
Substantially all of the loans the Financial Services segment originates are sold within a short period on 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 breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray any losses incurred by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements and seeking to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors, which are included in Financial Services’ liabilities in the Company's consolidated balance sheets. These accruals are 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
LENNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
believes it has adequately reserved for known losses and projected repurchase requests, given the volatility in the mortgage market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving purchase claims exceed the Company’s expectations, additional recourse expense may be incurred.
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