Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and accompanying notes included under Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2023.

Outlook

During the first half of fiscal 2024, we continued to execute our operating plan effectively, driving our production pace and sales pace in a synchronized manner, while using our gross margin as a point of adjustment to enable consistent production, even as market conditions evolved. This program has driven excellent operating results to date, and we are in an excellent position, from balance sheet to operating strategy to execution, to be able to adjust to the changing market as it unfolds for the remainder of 2024 and beyond.

In the third quarter, we expect to start, sell and deliver homes with a similar consistency, as we continue to drive for an even-flow manufacturing model that we believe will enhance our cash flow and our bottom line. We have continued to target a consistent production and growth rate in order to maintain volume, minimize production costs, and maintain an even flow of production and sales, all in order to drive cash flow, effective capital allocation and higher returns.

Our primary goal is to migrate to a pure-play, asset-light manufacturing model that will be supported by a durable, just-in-time, homesite delivery program that will enable growth, shareholder returns, higher returns on assets and, ultimately, higher returns on equity. Margin is the flexible mechanism that we expect will enable this to happen. We expect margin in our third quarter to be higher than in the second quarter, and we remain focused on driving margin for this year to be approximately the same as the 23.3% in fiscal 2023. Part of the anticipated increase in margin is embedded in our backlog, but achieving it will also depend on market conditions, interest rates and consumer confidence through the remainder of the year.

The macroeconomic environment remains relatively constructive for homebuilders. The demand for housing remains strong, but is limited by affordability, interest rates and, sometimes, wavering consumer confidence. The chronic housing shortage driven by over a decade of underproduction of housing stock is particularly problematic for families seeking affordable or attainable supply. At this time, consumers are generally employed and are confident that they will remain employed and that their compensation is likely to rise. This is most often the foundation of a strong housing market, but the chronic supply shortage, the impact of interest rates on affordability and persistent and stubborn inflation have moderated housing market strength. In response, we and other homebuilders have worked out sales incentives to meet the purchasers at the intersection of need and affordability to enable purchasers to buy homes. With our ready access to capital, we have been able to adjust and capture demand by using incentives to reduce the affordability constraint.

With regard to manufacturing, we have continued to refine our manufacturing platform to maintain production and sales pace while continuing to engineer our homes for increased production efficiency and volume. Driving volume enables us to offer more attainable products. In doing so, we have enhanced our inventory turn and grown volume as we generate substantial cash flow.

We are focusing on a just-in-time delivery program for land, just as we do for lumber, appliances and other products that are part of a home. We accomplish this both by negotiating option deals with landowners and developers and by using structured land bank strategies, often with entities that deploy private equity capital. These transactions are a key part of our land-light strategy, which has enhanced our ability to generate consistent cash flow through the ups and downs of interest rate changes.

While our land-light strategy has benefited strongly from land banking arrangements, we have concerns about the durability of these arrangements. Availability of private equity participation in our land banking arrangements depends upon market conditions and can change significantly and quickly. Therefore, we are proposing to contribute $6 to $8 billion of land to a new entity, which we will spin-off to our stockholders and which will be a permanent source of land acquisition and development capital for us and other homebuilders. Such a spin-off would distribute capital to our stockholders, reduce the inventory on our books, and provide permanent dependable capital for future land acquisitions. We are still early in the process and there is no specific timeline to completion or guarantee that the transaction will be completed.

Also, with regard to pure play, we will continue to reduce exposure to non-core assets and to intensify our focus on producing affordable and attainable products across our platform. Concurrently, we are repatriating capital that has been deployed in prior multifamily investments. Additionally, our LMV I fund sold some of its assets in June 2024, and we may decide to monetize additional assets in the second half of 2024. Combined, these transactions could result in cash proceeds of approximately $250 million in the second half of fiscal 2024.

We also expect to continue our investments in companies that are developing technologies that we can use in our homebuilding operations. Technology is an important component of our homebuilding business. Every element of our business is being modified, re-engineered and rethought around technology. Technology, imagination and innovation keeps us modern and relevant.

Perhaps most importantly, our very strong balance sheet affords us the ability to consider and execute upon thoughtful innovation for the future. We currently have a 7.7% debt-to-capital ratio, with $3.6 billion of cash on hand and no borrowings under our $2.2 billion revolving credit arrangement. This gives us the flexibility to allocate capital strategically: first, to growth, but also toward retiring debt, paying dividends and repurchasing shares of our stock.

We expect to have between 20,500 and 21,000 home sales during our third quarter with an approximately 23% gross margin. We expect to deliver approximately 80,000 homes this year, with a little over 23% gross margin. We also expect to repurchase in excess of $2 billion of our stock for the full year 2024.

(1) Results of Operations

Overview

We historically have experienced, and expect to continue to experience, variability in quarterly results. Our results of operations for the three and six months ended May 31, 2024 are not necessarily indicative of the results to be expected for the full year. Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second and third fiscal quarters and increased deliveries in the second half of our fiscal year. However, a variety of factors can alter seasonal patterns.

Our net earnings attributable to Lennar were $954.3 million, or $3.45 per diluted share, in the second quarter of 2024, compared to net earnings attributable to Lennar of $871.7 million, or $3.01 per diluted share, in the second quarter of 2023. Excluding $21.5 million of mark-to-market losses on technology investments and a $46.5 million one-time gain on the sale of a technology investment, second quarter net earnings attributable to Lennar in 2024 were $935.3 million, or $3.38 per diluted share. Excluding $25.5 million of mark-to-market gains on technology investments, second quarter net earnings attributable to Lennar in 2023 were $852.4 million or $2.94 per diluted share.

Financial information relating to our operations was as follows:

			Three Months Ended May 31, 2024
(In thousands)			Homebuilding						Financial Services						Multifamily (1)						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	8,357,750					—						—						—						—						8,357,750
Sales of land			13,598						—						—						—						—						13,598
Other revenues			9,711						281,723						99,500						3,310						—						394,244
Total revenues			8,381,059						281,723						99,500						3,310						—						8,765,592
Costs and expenses:
Costs of homes sold			6,469,952						—						—						—						—						6,469,952
Costs of land sold			6,903						—						—						—						—						6,903
Selling, general and administrative expenses			629,600						—						—						—						—						629,600
Other costs and expenses			—						134,711						102,205						26,841						—						263,757
Total costs and expenses			7,106,455						134,711						102,205						26,841						—						7,370,212
Equity in earnings (losses) from unconsolidated entities			15,516						—						(17,557)						(2,268)						—						(4,309)
Other income (expense), net and other gains (losses)			50,035						—						(212)						18,349						—						68,172
Lennar Other unrealized losses from technology investments			—						—						—						(21,514)						—						(21,514)
Operating earnings (loss)			$	1,340,155					147,012						(20,474)						(28,964)						—						1,437,729
Corporate general and administrative expenses			—						—						—						—						156,982						156,982
Charitable foundation contribution			—						—						—						—						19,690						19,690
Earnings (loss) before income taxes			$	1,340,155					147,012						(20,474)						(28,964)						(176,672)						1,261,057

			Three Months Ended May 31, 2023
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	7,636,579					—						—						—						—						7,636,579
Sales of land			16,314						—						—						—						—						16,314
Other revenues			17,124						222,979						151,744						411						—						392,258
Total revenues			7,670,017						222,979						151,744						411						—						8,045,151
Costs and expenses:
Costs of homes sold			5,916,325						—						—						—						—						5,916,325
Costs of land sold			11,932						—						—						—						—						11,932
Selling, general and administrative expenses			510,700						—						—						—						—						510,700
Other costs and expenses			—						110,380						154,354						6,795						—						271,529
Total costs and expenses			6,438,957						110,380						154,354						6,795						—						6,710,486
Equity in losses from unconsolidated entities			(12,279)						—						(5,926)						(31,550)						—						(49,755)
Other income (expense), net and other gains (losses)			(4,372)						—						374						(5,962)						—						(9,960)
Lennar Other unrealized gains from technology investments			—						—						—						25,497						—						25,497
Operating earnings (loss)			$	1,214,409					112,599						(8,162)						(18,399)						—						1,300,447
Corporate general and administrative expenses			—						—						—						—						124,752						124,752
Charitable foundation contribution			—						—						—						—						17,074						17,074
Earnings (loss) before income taxes			$	1,214,409					112,599						(8,162)						(18,399)						(141,826)						1,158,621

			Six Months Ended May 31, 2024
(In thousands)			Homebuilding						Financial Services						Multifamily (1)						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	15,259,531					—						—						—						—						15,259,531
Sales of land			34,350						—						—						—						—						34,350
Other revenues			18,169						531,443						229,177						5,852						—						784,641
Total revenues			15,312,050						531,443						229,177						5,852						—						16,078,522
Costs and expenses:
Costs of homes sold			11,865,484						—						—						—						—						11,865,484
Costs of land sold			20,920						—						—						—						—						20,920
Selling, general and administrative expenses			1,197,587						—						—						—						—						1,197,587
Other costs and expenses			—						253,135						234,872						35,929						—						523,936
Total costs and expenses			13,083,991						253,135						234,872						35,929						—						13,607,927
Equity in earnings (losses) from unconsolidated entities			28,818						—						(30,163)						(33,509)												(34,854)
Other income (expense), net and other gains (losses)			112,074						—						(255)						21,725												133,544
Lennar Other unrealized losses from technology investments			—						—						—						(26,651)												(26,651)
Operating earnings (loss)			$	2,368,951					278,308						(36,113)						(68,512)						—						2,542,634
Corporate general and administrative expenses			—						—						—						—						314,303						314,303
Charitable foundation contribution			—						—						—						—						36,488						36,488
Earnings (loss) before income taxes			$	2,368,951					278,308						(36,113)						(68,512)						(350,791)						2,191,843

			Six Months Ended May 31, 2023
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	13,730,406					—						—						—						—						13,730,406
Sales of land			26,032						—						—						—						—						26,032
Other revenues			69,884						405,960						295,267						8,031						—						779,142
Total revenues			13,826,322						405,960						295,267						8,031						—						14,535,580
Homebuilding costs and expenses:
Costs of homes sold			10,719,168						—						—						—						—						10,719,168
Costs of land sold			34,009						—						—						—						—						34,009
Selling, general and administrative			960,494						—						—						—						—						960,494
Other costs and expenses			—						214,624						303,310						13,271						—						531,205
Total costs and expenses			11,713,671						214,624						303,310						13,271						—						12,244,876
Equity in losses from unconsolidated entities			(9,093)						—						(22,409)						(49,440)						—						(80,942)
Other income (expense), net and other gains (losses)			17,690						—						689						(5,019)						—						13,360
Lennar Other unrealized gains from technology investments			—						—						—						1,543						—						1,543
Operating earnings (loss)			$	2,121,248					191,336						(29,763)						(58,156)						—						2,224,665
Corporate general and administrative expenses			—						—						—						—						250,858						250,858
Charitable foundation contribution			—						—						—						—						30,733						30,733
Earnings (loss) before income taxes			$	2,121,248					191,336						(29,763)						(58,156)						(281,591)						1,943,074

(1)During both the three and six months ended May 31, 2024, Multifamily revenues decreased primarily due to less general contractor and management fees income as a result of the completion of Multifamily properties.

Three Months Ended May 31, 2024 versus Three Months Ended May 31, 2023

Revenues from home sales increased 9% in the second quarter of 2024 to $8.4 billion from $7.6 billion in the second quarter of 2023. Revenues were higher primarily due to a 15% increase in the number of home deliveries, partially offset by a 5% decrease in the average sales price of homes delivered. New home deliveries increased to 19,690 homes in the second quarter of 2024 from 17,074 homes in the second quarter of 2023. The average sales price of homes delivered was $426,000 in the second quarter of 2024, compared to $449,000 in the second quarter of 2023. The decrease in average sales price of homes delivered in the second quarter of 2024 compared to the same period last year was primarily due to pricing to market through an increased use of incentives and product mix.

Gross margins on home sales were $1.9 billion, or 22.6%, in the second quarter of 2024, compared to $1.7 billion, or 22.5%, in the second quarter of 2023. During the second quarter of 2024, gross margins increased because of a decrease in costs per square foot as we continued to focus on construction cost savings, which was partially offset by a decrease in average sales price and an increase in land costs.

Selling, general and administrative expenses were $629.6 million in the second quarter of 2024, compared to $510.7 million in the second quarter of 2023. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.5% in the second quarter of 2024, from 6.7% in the second quarter of 2023, primarily due to an increase in digital marketing costs, professional expenses and insurance costs.

During the three months ended May 31, 2024, our homebuilding operating earnings included $43.2 million of interest income due to an increase in cash balances and higher interest rates.

Operating earnings for the Financial Services segment were $146.3 million in the second quarter of 2024, compared to $112.1 million in the second quarter of 2023. The increase in operating earnings was primarily due to higher volume from increased capture rate and Lennar deliveries.

Operating loss for the Multifamily segment was $20.4 million in the second quarter of 2024, compared to operating loss of $8.1 million in the second quarter of 2023. Operating loss for the Lennar Other segment was $27.9 million in the second quarter of 2024, compared to an operating loss of $18.4 million in the second quarter of 2023. The Lennar Other operating loss for the second quarter of 2024 included $21.5 million of mark-to-market losses on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment.

In the second quarter of 2024 and 2023, we had tax provisions of $300.5 million and $280.9 million, respectively, which resulted in an overall effective income tax rate of 23.9% and 24.4%, respectively. For both periods, our effective income tax

rate included state income tax expense and non-deductible executive compensation, partially offset by energy efficient home and solar tax credits.

Six Months Ended May 31, 2024 versus Six Months Ended May 31, 2023

Revenues from home sales were $15.3 billion and $13.7 billion in the six months ended May 31, 2024 and 2023, respectively. Revenues were higher primarily due to a 19% increase in the number of home deliveries, which was offset by a 6% decrease in average sales price of homes delivered. New home deliveries increased to 36,488 homes in the six months ended May 31, 2024 from 30,733 homes in the six months ended May 31, 2023. The average sales price of homes delivered was $420,000 in the six months ended May 31, 2024, compared to $449,000 in the six months ended May 31, 2023. The decrease in average sales price of homes delivered in the six months ended May 31, 2024 compared to the same period last year was primarily due to pricing to market through an increased use of incentives and product mix.

Gross margins on home sales were $3.4 billion, or 22.2%, in the six months ended May 31, 2024, compared to $3.0 billion, or 21.9%, in the six months ended May 31, 2023. During the six months ended May 31, 2024, gross margins increased because of a decrease in costs per square foot as we continued to focus on construction cost savings, which was partially offset by a decrease in average sales price and an increase in land costs.

Selling, general and administrative expenses were $1.2 billion in the six months ended May 31, 2024, compared to $1.0 billion in the six months ended May 31, 2023. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.8% in the six months ended May 31, 2024, from 7.0% in the six months ended May 31, 2023, primarily due to an increase in digital marketing and advertising costs to generate more direct sales, professional expenses, insurance costs and an increase in the use of brokers due to current market conditions.

During the six months ended May 31, 2024, our homebuilding operating earnings included $100.8 million of interest income due to an increase in cash balances and higher interest rates.

Operating earnings for the Financial Services segment were $276.9 million in the six months ended May 31, 2024, compared to $190.3 million in the six months ended May 31, 2023. The increase in operating earnings was primarily due to higher volume from increased capture rate and Lennar deliveries.

Operating loss for the Multifamily segment was $35.9 million in the six months ended May 31, 2024, compared to operating loss of $29.7 million in the six months ended May 31, 2023. Operating loss for the Lennar Other segment was $67.4 million in the six months ended May 31, 2024, compared to operating loss of $59.6 million in the six months ended May 31, 2023. The Lennar Other operating loss for the six months ended May 31, 2024 included $26.7 million of mark-to-market losses on our publicly traded technology investments and a $46.5 million one-time gain on the sale of a technology investment. Lennar Other operating loss in the six months ended May 31, 2023 was primarily related to operating losses from certain strategic investments.

For the six months ended May 31, 2024 and 2023, we had tax provisions of $511.3 million and $466.0 million, respectively, which resulted in overall effective income tax rates of 23.4% and 24.1%, respectively. In the six months ended May 31, 2024, our overall effective income tax rate was lower than last year, primarily due to excess tax benefits from share-based compensation. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by excess tax benefits from share-based compensation and energy efficient home and solar tax credits.

Homebuilding Segments

At May 31, 2024, our reportable Homebuilding segments and Homebuilding Other are outlined in Note 2 of the Notes to Condensed Consolidated Financial Statements. The following tables set forth selected financial and operational information related to our homebuilding operations for the periods indicated:

Selected Financial and Operational Data

			Three Months Ended May 31, 2024
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins (Loss) on Sales of Land						Other Revenues						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income, net						Operating Earnings
East			$	2,186,928					1,614,575						26.2		%				388,018						6,333						2,939						5,317						23,043						425,650
Central			1,706,051						1,325,590						22.3		%				229,391						(30)						1,393						25						7,091						237,870
Texas			1,194,525						912,228						23.6		%				179,399						392						750						(3)						4,106						184,644
West			3,263,903						2,609,981						20.0		%				467,453						—						1,564						1,236						8,684						478,937
Other (2)			6,343						7,578						(19.5)		%				(6,063)						—						3,065						8,941						7,111						13,054
Totals			$	8,357,750					6,469,952						22.6		%				1,258,198						6,695						9,711						15,516						50,035						1,340,155

			Three Months Ended May 31, 2023
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins (Loss) on Sales of Land						Other Revenues						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings (Loss)
East			$	2,115,470					1,485,197						29.8		%				476,685						501						3,828						3,110						(10,657)						473,467
Central			1,603,187						1,248,693						22.1		%				229,957						4,856						3,062						(917)						10,592						247,550
Texas			1,137,517						890,432						21.7		%				171,391						1,318						1,474						—						8,878						183,061
West			2,773,005						2,282,859						17.7		%				333,314						(2,293)						4,581						1,814						18,056						355,472
Other (2)			7,400						9,144						(23.6)		%				(1,793)						—						4,179						(16,286)						(31,241)						(45,141)
Totals			$	7,636,579					5,916,325						22.5		%				1,209,554						4,382						17,124						(12,279)						(4,372)						1,214,409

			Six Months Ended May 31, 2024
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins (Loss) on Sales of Land						Other Revenue						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income, net						Operating Earnings
East			$	4,094,598					2,997,343						26.8		%				733,733						11,596						5,325						12,414						39,463						802,531
Central			3,101,695						2,441,550						21.3		%				380,349						(451)						2,204						6						17,378						399,486
Texas			2,264,683						1,744,100						23.0		%				340,993						1,434						1,292						(3)						9,441						353,157
West			5,785,395						4,665,604						19.4		%				754,515						851						3,208						3,713						25,437						787,724
Other (2)			13,160						16,887						(28.3)		%				(13,130)						—						6,140						12,688						20,355						26,053
Totals			$	15,259,531					11,865,484						22.2		%				2,196,460						13,430						18,169						28,818						112,074						2,368,951

			Six Months Ended May 31, 2023
			Gross Margins																		Operating Earnings (Loss)
($ in thousands)			Sales of Homes Revenue						Costs of Sales of Homes						Gross Margin %						Net Margins on Sales of Homes (1)						Gross Margins (Loss) on Sales of Land						Other Revenue						Equity in Earnings (Loss) from Unconsolidated Entities						Other Income (Expense), net						Operating Earnings (Loss)
East			$	3,795,742					2,679,451						29.4		%				824,881						(1,853)						23,632						6,358						18,881						871,899
Central			2,804,582						2,213,629						21.1		%				364,413						6,688						22,362						(229)						10,602						403,836
Texas			2,154,490						1,708,077						20.7		%				297,967						(733)						5,183						—						5,963						308,380
West			4,967,027						4,105,946						17.3		%				571,791						(12,079)						10,485						1,662						14,113						585,972
Other (2)			8,565						12,065						(40.9)		%				(8,308)						—						8,222						(16,884)						(31,869)						(48,839)
Totals			$	13,730,406					10,719,168						21.9		%				2,050,744						(7,977)						69,884						(9,093)						17,690						2,121,248

(1)Net margins on sales of homes include selling, general and administrative expenses.

(2)Negative gross and net margins were due to period costs and/or impairments in Urban divisions that impact costs of homes sold without sufficient sales of homes revenue to offset those costs.

Summary of Homebuilding Data

Deliveries:

			Three Months Ended May 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			5,529						4,893						$	2,222,108					2,146,387						$	402,000					439,000
Central			4,188						3,699						1,706,051						1,603,187						407,000						433,000
Texas			4,669						3,908						1,194,525						1,137,517						256,000						291,000
West			5,292						4,565						3,263,904						2,773,005						617,000						607,000
Other			12						9						6,343						7,401						529,000						822,000
Total			19,690						17,074						$	8,392,931					7,667,497						$	426,000					449,000

Of the total homes delivered listed above, 70 homes with a dollar value of $35.2 million and an average sales price of $503,000 represent home deliveries from unconsolidated entities for the three months ended May 31, 2024, compared to 72 home deliveries with a dollar value of $30.9 million and an average sales price of $429,000 for the three months ended May 31, 2023.

			Six Months Ended May 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			10,253						8,748						$	4,172,739					3,858,332						$	407,000					441,000
Central			7,748						6,439						3,101,695						2,804,582						400,000						436,000
Texas			8,932						7,329						2,264,683						2,154,490						254,000						294,000
West			9,530						8,207						5,785,395						4,967,027						607,000						605,000
Other			25						10						13,160						8,566						526,000						857,000
Total			36,488						30,733						$	15,337,672					13,792,997						$	420,000					449,000

Of the total homes delivered listed above, 147 homes with a dollar value of $78.1 million and an average sales price of $532,000 represent home deliveries from unconsolidated entities for the six months ended May 31, 2024, compared to 135 home deliveries with a dollar value of $62.6 million and an average sales price of $464,000 for the six months ended May 31, 2023.

Sales Incentives (1):

			Three Months Ended May 31,																											Six Months Ended May 31,
						2024						2023						2024						2023						2024						2023						2024						2023
						Average Sales Incentives Per Home Delivered												Sales Incentives as a % of Revenue												Average Sales Incentives Per Home Delivered												Sales Incentives as a % of Revenue
East						$	47,900					30,100						10.7		%				6.4		%				$	47,400					30,100						10.5		%				6.4		%
Central						37,400						29,900						8.4		%				6.5		%				41,300						34,000						9.4		%				7.2		%
Texas						48,500						57,600						15.9		%				16.5		%				51,600						62,200						16.9		%				17.5		%
West						41,800						47,300						6.3		%				7.2		%				47,300						54,700						7.2		%				8.3		%
Other						73,400						101,800						12.2		%				11.0		%				81,700						100,200						13.4		%				10.5		%
Total						$	44,200					41,000						9.4		%				8.4		%				$	47,100					45,300						10.1		%				9.2		%

(1) Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities.

New Orders (2):

			Three Months Ended May 31,
			2024						2023						2024						2023						2024						2023						2024						2023
			Active Communities												Homes												Dollar Value (In thousands)												Average Sales Price
East			309						339						5,000						5,022						$	2,033,401					2,166,704						$	407,000					431,000
Central			332						330						5,332						4,080						2,144,250						1,729,280						402,000						424,000
Texas			239						226						5,213						3,732						1,332,392						1,079,757						256,000						289,000
West			363						365						5,735						5,045						3,679,145						3,190,159						642,000						632,000
Other			2						3						13						6						5,688						5,544						438,000						924,000
Total			1,245						1,263						21,293						17,885						$	9,194,876					8,171,444						$	432,000					457,000

Of the total homes listed above, 74 homes with a dollar value of $40.0 million and an average sales price of $540,000 represent homes in eight active communities from unconsolidated entities for the three months ended May 31, 2024, compared to 73 homes with a dollar value of $37.0 million and an average sales price of $507,000 in seven active communities for the three months ended May 31, 2023.

			Six Months Ended May 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			9,526						8,863						$	3,931,479					3,840,881						$	413,000					433,000
Central			9,606						6,821						3,862,786						2,877,097						402,000						422,000
Texas			9,644						6,874						2,452,391						1,959,213						254,000						285,000
West			10,662						9,510						6,675,384						5,898,485						626,000						620,000
Other			31						11						15,218						9,229						491,000						839,000
Total			39,469						32,079						$	16,937,258					14,584,905						$	429,000					455,000

Of the total new orders listed above, 120 homes with a dollar value of $65.2 million and an average sales price of $543,000 represent new orders from unconsolidated entities for the six months ended May 31, 2024, compared to 170 new orders with a dollar value of $75.2 million and an average sales price of $443,000 for the six months ended May 31, 2023.

(2)Homes represent the number of new sales contracts executed with homebuyers, net of cancellations, during the three and six months ended May 31, 2024 and 2023.

We experienced cancellation rates in our Homebuilding segments and Homebuilding Other as follows:

			Three Months Ended												Six Months Ended
			May 31,												May 31,
			2024						2023						2024						2023
East			17		%				13		%				17		%				18		%
Central			9		%				11		%				10		%				18		%
Texas			16		%				19		%				17		%				21		%
West			11		%				12		%				11		%				13		%
Other			13		%				14		%				9		%				15		%
Total			13		%				14		%				14		%				17		%

Backlog:

			At May 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			5,853						8,276						$	2,467,062					3,565,256						$	422,000					431,000
Central			5,021						4,951						2,136,707						2,165,563						426,000						437,000
Texas			2,607						2,242						663,648						641,806						255,000						286,000
West			4,383						4,743						2,962,332						3,157,935						676,000						666,000
Other			9						2						3,586						1,828						398,000						914,000
Total			17,873						20,214						$	8,233,335					9,532,388						$	461,000					472,000

Of the total homes in backlog listed above, 120 homes with a backlog dollar value of $61.5 million and an average sales price of $513,000 represent the backlog from unconsolidated entities at May 31, 2024, compared to 201 homes with a backlog dollar value of $90.4 million and an average sales price of $450,000 at May 31, 2023.

Backlog represents the number of homes under sales contracts. Homes are sold using sales contracts, which are generally accompanied by sales deposits. In some instances, purchasers are permitted to cancel sales if they fail to qualify for financing or under certain other circumstances. Various state and federal laws and regulations may sometimes give purchasers a right to cancel homes in backlog. We do not recognize revenue on homes under sales contracts until the sales are closed and title passes to the new homeowners.

Three Months Ended May 31, 2024 versus Three Months Ended May 31, 2023

Homebuilding East: Revenues from home sales increased in the second quarter of 2024 compared to the second quarter of 2023, primarily due to an increase in the number of home deliveries in all the states in the segment, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Pennsylvania. The increase in the number of home deliveries in Alabama, Florida, New Jersey and Pennsylvania was primarily due to an increase in the number of deliveries per active community. The decrease in the average sales price of homes delivered in Alabama, Florida and New Jersey was primarily due to pricing to market through an increased use of incentives and product mix. The increase in the average sales price of homes delivered in Pennsylvania was primarily due to product mix. In the second quarter of 2024, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, this resulted in a decrease in gross margin percentage of home deliveries.

Homebuilding Central: Revenues from home sales increased in the second quarter of 2024 compared to the second quarter of 2023, primarily due to an increase in the number of home deliveries in all the states in the segment except in Maryland, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois and Maryland. The increase in the number of home deliveries in Georgia, Illinois, Indiana, Minnesota, North Carolina, South Carolina, Tennessee and Virginia was primarily due to an increase in the number of deliveries per active community. The decrease in the number of home deliveries in Maryland was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. The decrease in the average sales price of homes delivered in Georgia, Indiana, Minnesota, North Carolina, South Carolina, Tennessee and Virginia was primarily due to pricing to market through an increased use of incentives and product mix. The increase in the average sales price of homes delivered in Illinois and Maryland was primarily due to product mix. In the second quarter of 2024, a decrease in revenues per square foot was more than offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of home deliveries remained flat year over year.

Homebuilding Texas: Revenues from home sales increased in the second quarter of 2024 compared to the second quarter of 2023, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered. The increase in the number of home deliveries was primarily due to an increase in the number of active communities and deliveries per active community. The decrease in the average sales price of homes delivered was primarily due to pricing to market through an increased use of incentives and product mix. In the second quarter of 2024, a decrease in revenues per square foot was more than offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of home deliveries increased year over year.

Homebuilding West: Revenues from home sales increased in the second quarter of 2024 compared to the second quarter of 2023, primarily due to an increase in the number of home deliveries in all the states in the segment except in Arizona, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Idaho, Nevada, Oregon and Utah. The increase in the number of home deliveries in California, Colorado, Idaho, Nevada, Oregon, Utah and Washington was primarily due to an increase in the number of deliveries per active community. The decrease in the number of home deliveries in Arizona was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. The decrease in the average sales price of homes delivered in Arizona, California, Colorado and Washington was primarily due to pricing to market through an increased use of incentives and product mix. The increase in the average sales price of homes delivered in Idaho, Nevada, Oregon and Utah was primarily due to product mix. In the second quarter of 2024, an increase in revenues per square foot was more than offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of home deliveries increased year over year.

Six Months Ended May 31, 2024 vers**us Six Months Ended May 31, 2023

Homebuilding East: Revenues from home sales increased in the six months ended May 31, 2024 compared to the six months ended May 31, 2023, primarily due to an increase in the number of home deliveries in all the states in the segment, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in New Jersey and Pennsylvania. The increase in the number of home deliveries in Alabama, Florida, New Jersey and Pennsylvania was primarily due to an increase in the number of deliveries per active community. The decrease in the average sales price of homes delivered in Alabama and Florida was primarily due to pricing to market and product mix. The increase in the average sales price of homes delivered in New Jersey and Pennsylvania was primarily due to product mix. In the six months

ended May 31, 2024, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, this resulted in a decrease in gross margin percentage of home deliveries.

Homebuilding Central: Revenues from home sales increased in the six months ended May 31, 2024 compared to the six months ended May 31, 2023, primarily due to an increase in the number of home deliveries in all the states in the segment except in Maryland and Virginia, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois and Maryland. The increase in the number of home deliveries in Georgia, Illinois, Indiana, Minnesota, North Carolina, South Carolina and Tennessee was primarily due to an increase in the number of deliveries per active community. The decrease in the number of home deliveries in Maryland and Virginia was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities. The decrease in the average sales price of homes delivered in Georgia, Indiana, Minnesota, North Carolina, South Carolina, Tennessee and Virginia was primarily due to pricing to market through an increased use of incentives and product mix. The increase in the average sales price of homes delivered in Illinois and Maryland was primarily due to product mix. In the six months ended May 31, 2024, a decrease in revenues per square foot was more than offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of home deliveries remained flat year over year.

Homebuilding Texas: Revenues from home sales increased in the six months ended May 31, 2024, compared to the six months ended May 31, 2023, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered. The increase in the number of home deliveries was primarily due to an increase in the number of active communities and deliveries per active community. The decrease in the average sales price of homes delivered was primarily due to pricing to market. In the six months ended May 31, 2024, an increase in revenues per square foot was more than offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, gross margin percentage of home deliveries increased year over year.

Homebuilding West: Revenues from home sales increased in the six months ended May 31, 2024 compared to the six months ended May 31, 2023, primarily due to an increase in the number of home deliveries in all the states in the segment, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in California, Nevada, Oregon and Utah. The increase in the number of home deliveries in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington was primarily due to an increase in the number of deliveries per active community. The decrease in the average sales price of homes delivered in Arizona, Colorado, Idaho and Washington was primarily due to pricing to market through an increased use of incentives and product mix. The increase in the average sales price of homes delivered in California, Nevada, Oregon and Utah was primarily due to product mix. In the six months ended May 31, 2024, an increase in revenues per square foot was more than offset by a decrease in costs per square foot. In addition, land costs increased year over year. Overall, the gross margin percentage of home deliveries increased year over year.

Financial Services Segment

Our Financial Services reportable segment provides mortgage financing, title and closing services primarily for buyers of our homes. The segment also originates and sells into securitizations commercial mortgage loans through its LMF Commercial business. Our Financial Services segment sells substantially all of the residential loans it originates within a short period in the secondary mortgage market, the majority of which are sold on a servicing released, non-recourse basis. After the loans are sold, we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements.

The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment:

			Three Months Ended												Six Months Ended
			May 31,												May 31,
(Dollars in thousands)			2024						2023						2024						2023
Dollar value of mortgages originated			$	4,998,000					3,942,000						9,110,000						7,096,000
Number of mortgages originated			13,700						10,700						25,200						19,200
Mortgage capture rate of Lennar homebuyers			85%						79%						85%						78%
Number of title and closing service transactions			20,200						17,600						38,000						31,900

At May 31, 2024 and November 30, 2023, the carrying value of Financial Services' commercial mortgage-backed securities was $138.4 million and $140.7 million, respectively. Details of these securities and related debt are disclosed in Note 2 of the Notes to Condensed Consolidated Financial Statements.

Multifamily Segment

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

The following table provides information related to our investment in the Multifamily segment:

Balance Sheets
(In thousands)			May 31, 2024						November 30, 2023
Multifamily investments in unconsolidated entities			$	561,892					599,852
Lennar's net investment in Multifamily			1,121,907						1,095,218

Lennar Multifamily Venture Fund I (“LMV I") is a long-term multifamily development investment vehicle involved in the development, construction and property management of class-A multifamily assets. Currently, the LMV I partners have decided to liquidate and sell substantially all of its individual project rental operations of LMV I in the second half of fiscal 2024. Some of those assets were sold in June 2024. As of May 31, 2024, our net investment in LMV I was $162.9 million.

Lennar Other Segment

Our Lennar Other segment includes fund investments we retained subsequent to our sale of the Rialto investment and asset management platform, as well as strategic investments in technology companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies. At May 31, 2024 and November 30, 2023, we had $836.0 million and $657.9 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $350.6 million and $276.2 million, respectively. The investments in equity securities of Blend Labs, Inc. (“Blend Labs”), Hippo Holdings, Inc. (“Hippo”), Opendoor Technologies, Inc. (“Opendoor”), SmartRent, Inc. (“SmartRent”), Sonder Holdings, Inc. (“Sonder”), and Sunnova Energy International, Inc. (“Sunnova”) are carried at market and will therefore change depending on the market value of our shareholdings in those entities on the last day of each quarter. All of 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. Details of these investments are included within Note 2 of the Notes to Condensed Consolidated Financial Statements. The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on our publicly traded technology investments:

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

(2) Financial Condition and Capital Resources

At May 31, 2024, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $3.9 billion, compared to $6.6 billion at November 30, 2023 and $4.3 billion at May 31, 2023.

We finance all of our activities, including homebuilding, financial services, multifamily, other and general operating needs, primarily with cash generated from our operations, debt issuances and cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility (the “Credit Facility”). At May 31, 2024, we had $3.6 billion of homebuilding cash and cash equivalents and no outstanding borrowings under our $2.2 billion revolving credit facility, thereby providing approximately $5.8 billion of available capacity.

Operating Cash Flow Activities

During the six months ended May 31, 2024 and 2023, cash provided by operating activities totaled $610 million and $1.6 billion, respectively. During the six months ended May 31, 2024, cash provided by operating activities was impacted primarily by our net earnings and a decrease in loans held-for-sale of $336 million primarily related to the sale of loans originated by our Financial Services segment. This was partially offset by an increase in inventories due to strategic land purchases, land development and construction costs of $631 million, an increase in deposits and pre-acquisition costs on real estate of $755 million as we increased the percentage of controlled homesites, and a decrease in accounts payable and other liabilities of $381 million.

During the six months ended May 31, 2023, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $578 million primarily related to the sale of loans originated by our Financial Services segment and a decrease in receivables of $436 million primarily related to a decrease in Financial Services receivables, net, which are loans sold to investors for which we have not yet been paid. This was partially offset by a decrease in accounts payable and other liabilities of $991 million, primarily due to the payment of income taxes.

Investing Cash Flow Activities

During the six months ended May 31, 2024 and 2023, cash used in investing activities totaled $275 million and $81 million, respectively. During the six months ended May 31, 2024, our cash used in investing activities was primarily due to cash contributions of $248 million to unconsolidated entities, which included (1) $118 million to Homebuilding unconsolidated entities, (2) $117 million to Lennar other unconsolidated entities and (3) $13 million to Multifamily unconsolidated entities and $112 million of net additions of operating properties and equipment. This was partially offset by distributions of capital from unconsolidated entities of $62 million, which primarily included (1) $40 million from Homebuilding unconsolidated entities, (2) $16 million from our Lennar Other unconsolidated entities and (3) $6 million from Multifamily entities.

During the six months ended May 31, 2023, our cash used in investing activities was primarily due to cash contributions of $108 million to unconsolidated entities, which included (1) $54 million to Homebuilding unconsolidated entities, (2) $40 million to Lennar Other unconsolidated entities, and (3) $14 million to Multifamily unconsolidated entities. This was partially offset by distributions of capital from unconsolidated entities of $46 million, which primarily included (1) $33 million from Homebuilding unconsolidated entities, and (2) $13 million from our Lennar Other unconsolidated entities.

Financing Cash Flow Activities

During the six months ended May 31, 2024 and 2023, cash used in financing activities totaled $3.0 billion and $2.1 billion, respectively. During the six months ended May 31, 2024, cash used in financing activities was primarily due to (1) $754 million of net repayments under our Financial Services' warehouse facilities; (2) redemption of $454 million aggregate principal amount of our 4.50% senior notes due April 2024; (3) $100 million of partial repurchase of our 4.75% senior notes due 2027; (4) $1.2 billion of repurchases of our common stock, which included $1.1 billion of repurchases under our repurchase program and $86 million of repurchases related to our equity compensation plan; (5) $278 million of dividend payments; and (6) $145 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

During the six months ended May 31, 2023, cash used in financing activities was primarily due to (1) $978 million of net repayments under our Financial Services' warehouse facilities; (2) $465 million of repurchases of our common stock, which included $401 million of repurchases under our repurchase program and $64 million of repurchases related to our equity compensation plan; (3) $158 million of repurchases of senior notes due in fiscal year 2024 (4) $218 million of dividend payments; and (5) $186 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

Debt to total capital ratios are financial measures commonly used in the homebuilding industry and are presented to assist in understanding the leverage of our homebuilding operations. Homebuilding debt to total capital and net Homebuilding debt to total capital are calculated as follows:

(Dollars in thousands)			May 31, 2024						November 30, 2023						May 31, 2023
Homebuilding debt			$	2,241,507					2,816,482						3,852,258
Stockholders’ equity			26,877,874						26,580,664						25,015,145
Total capital			$	29,119,381					29,397,146						28,867,403
Homebuilding debt to total capital			7.7		%				9.6		%				13.3		%
Homebuilding debt			$	2,241,507					2,816,482						3,852,258
Less: Homebuilding cash and cash equivalents			3,597,493						6,273,724						4,004,679
Net Homebuilding debt			$	(1,355,986)					(3,457,242)						(152,421)
Net Homebuilding debt to total capital (1)			(5.3)		%				(15.0)		%				(0.6)		%

(1)Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity). We believe the ratio of net homebuilding debt to total capital is a relevant and a useful financial measure to investors in understanding the leverage employed in homebuilding operations. However, because net homebuilding debt to total capital is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement our GAAP results.

At May 31, 2024, Homebuilding debt to total capital was lower compared to both November 30, 2023 and May 31, 2023, primarily as a result of an increase in stockholders' equity due to net earnings and a decrease in Homebuilding debt due to debt paydowns, partially offset by share repurchases.

We are continually exploring various types of transactions to manage our leverage and liquidity positions, take advantage of market opportunities and increase our revenues and earnings. These transactions may include the issuance of additional indebtedness, the repurchase of our outstanding indebtedness, the repurchase of our common stock, the acquisition of homebuilders and other companies, the purchase or sale of assets or lines of business, the issuance of common stock, strategic transactions to accelerate our land light strategy or securities convertible into shares of common stock, and/or the pursuit of other financing alternatives. In connection with some of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.

Subject to market conditions, we are planning a strategic taxable spin-off of a new public company to which we will have contributed land assets with a value of approximately $6 billion to $8 billion. We have confidentially submitted to the Securities and Exchange Commission a draft registration statement relating to the spin-off. We are still early in the process of this project and there is no specific timeline to completion or guarantee that the transaction will be completed. We expect the new company to be a permanent capital vehicle that will develop homesites and give us options to acquire them on a “just-in-time” basis. The goal of the spin-off is to accelerate our land light strategy by removing much of the land assets from our balance sheet.

Our Homebuilding senior notes and other debt payable as well as letters of credit and surety bonds are summarized within Note 7 of the Notes to Condensed Consolidated Financial Statements. Our Homebuilding average debt outstanding and the average rates of interest was as follows:

			Six Months Ended May 31,
(Dollars in thousands)			2024						2023
Homebuilding average debt outstanding			$	2,640,040					$	4,010,108
Average interest rate			4.8%						4.9%
Interest incurred			$	70,275					99,281

The maximum available borrowings on our Credit Facility were as follows:

(In thousands)						May 31, 2024
Commitments - maturing in May 2027						$	2,225,000
Accordion feature						425,000
Total maximum borrowings capacity						$	2,650,000

In April 2024, $350 million of our unsecured revolving credit facility matured.

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 Facility also provides that up to $500 million in commitments may be used for letters of credit. The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in our Financial Condition and Capital Resources section in our Annual Report on Form 10-K for the fiscal year ended November 30, 2023. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.

Under the agreement governing our Credit Facility, we are 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. We believe we were in compliance with our debt covenants as of May 31, 2024. The following summarizes our debt covenant requirements and our actual levels or ratios with respect to those covenants as calculated per the Credit Facility agreement as of May 31, 2024:

(Dollars in thousands)			Covenant Level						Level Achieved as of May 31, 2024
Minimum net worth test			$	13,600,247					20,139,832
Maximum leverage ratio			65.0%						(3.8)%
Liquidity test			1.00						(197.00)

Financial Services Warehouse Facilities

Our Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to us and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial warehouse facilities finance LMF Commercial loan origination and securitization activities and are secured by up to 80% interests in the originated commercial loans financed. These facilities and the related borrowings and collateral are detailed in Note 2 of the Notes to Condensed Consolidated Financial Statements.

Changes in Capital Structure

In January 2024, our Board of Directors authorized an increase to our stock repurchase program to enable us to repurchase up to an additional $5 billion in value of our outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date. The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the six months ended May 31, 2024 and 2023 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

During the six months ended May 31, 2024, treasury shares increased by 7.8 million shares primarily due to our repurchase of 7.2 million shares of Class A and Class B common stock through our stock repurchase program.

On June 20, 2024, our Board of Directors declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on July 19, 2024 to holders of record at the close of business on July 5, 2024. On May 8, 2024, the Company paid a quarterly cash dividend of $0.50 per share for both of its Class A and Class B common stock to holders of record at the close of business on April 24, 2024, as declared by its Board of Directors on April 10, 2024. We approved and paid cash dividends of $0.375 per share for each of the four quarters of 2023 on both our Class A and Class B common stock.

Based on our current financial condition and credit relationships, we believe that our operations and borrowing resources will provide for our current and long-term capital requirements at our anticipated levels of activity.

Supplemental Financial Information

Currently, certain of our 100% owned subsidiaries, which are primarily homebuilding subsidiaries, are guaranteeing all our senior notes. The guarantees are full and unconditional.

The indentures governing our senior notes require that, if any of our 100% owned subsidiaries, other than our finance company subsidiaries and foreign subsidiaries, directly or indirectly guarantee at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), those subsidiaries must also guarantee Lennar Corporation’s obligations with regard to its senior notes. Included in the following tables as part of “Obligors” together with Lennar Corporation are subsidiary entities that are not finance company subsidiaries or foreign subsidiaries and were guaranteeing the senior notes because at May 31, 2024 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 7 of the Notes to Condensed Consolidated Financial Statements. The guarantees are full, unconditional and joint and several and the guarantor subsidiaries are 100% directly or indirectly owned by Lennar Corporation. A subsidiary's guarantee of Lennar senior notes will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), and a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed.

Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at May 31, 2024 is included in the following tables. Intercompany balances and transactions within the Obligors have been eliminated and amounts attributable to the Obligors' investment in consolidated subsidiaries that have not issued or guaranteed the senior notes have been excluded. Amounts due from and transactions with nonobligor subsidiaries and related parties are separately disclosed:

(In thousands)			May 31, 2024						November 30, 2023
Due from non-guarantor subsidiaries			$	23,871,671					22,020,227
Equity method investments			1,053,486						986,508
Total assets			47,493,655						45,830,841
Total liabilities			9,168,846						9,181,456

			Six Months Ended
(In thousands)			May 31, 2024
Total revenues			$	15,185,875
Operating earnings			2,292,267
Earnings before income taxes			1,948,959
Net earnings attributable to Lennar			1,493,633

Off-Balance Sheet Arrangements

We regularly monitor the results of our Homebuilding, Multifamily and Lennar Other unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations. We also monitor the performance of joint ventures in which we have investments on a regular basis to assess compliance with debt covenants. For those joint ventures not in compliance with the debt covenants, we evaluate and assess possible impairment of our investments. We believe that substantially all of the joint ventures were in compliance with applicable debt covenants at May 31, 2024.

Homebuilding: Investments in Unconsolidated Entities

As of May 31, 2024, we had equity investments in 47 active Homebuilding and land unconsolidated entities (of which 5 had recourse debt, 14 had non-recourse debt and 28 had no debt) and 48 active Homebuilding and land unconsolidated entities at November 30, 2023. Historically, we have invested in unconsolidated entities that acquired and developed land (1) for our homebuilding operations or for sale to third parties or (2) for the construction of homes for sale to third-party homebuyers. Through these entities, we have primarily sought to reduce and share our risk by limiting the amount of our capital invested in land, while obtaining access to potential future homesites and allowing us to participate in strategic ventures. The use of these entities also, in some instances, has enabled us to acquire land to which we could not otherwise obtain access, or could not obtain access on as favorable terms, without the participation of a strategic partner. Participants in these joint ventures have been land owners/developers, other homebuilders and financial or strategic partners. Joint ventures with land owners/developers have given us access to homesites owned or controlled by our partners. Joint ventures with other homebuilders have provided us with the ability to bid jointly with our partners for large land parcels. Joint ventures with financial partners have allowed us to combine our homebuilding expertise with access to our partners’ capital. Joint ventures with strategic partners have allowed us to combine our homebuilding expertise with the specific expertise (e.g. commercial or infill experience) of our partners. Each joint venture is governed by an executive committee consisting of members from the partners. Details regarding these investments, balances and debt are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Homebuilding unconsolidated entities (“JVs”) debt as per current debt arrangements as of May 31, 2024. It does not represent estimates of future cash payments that will be made to reduce debt balances. Many JV loans have extension options in the loan agreements that would allow the loans to be extended into future years.

									Principal Maturities of Unconsolidated JVs by Period
(In thousands)									Total JV Debt						2024						2025						2026						Thereafter						Other
Bank debt without recourse to Lennar									$	1,295,017					307,709						164,715						144,883						677,710						—
Land seller and other debt without recourse to Lennar									4,358						—						—						—						4,358						—
Maximum recourse debt exposure to Lennar									42,855						—						—						10,945						31,910						—
Debt issuance costs									(7,052)						—						—						—						—						(7,052)
Total									$	1,335,178					307,709						164,715						155,828						713,978						(7,052)

We own an approximately 40% interest in FivePoint Holdings, LLC., a NYSE listed company, and companies it manages, which own three large multi-use properties in California.

We manage, and have an investment in, Upward America Fund, which purchases single family homes and operates them as rental properties.

Multifamily: Investments in Unconsolidated Entities

At May 31, 2024, Multifamily had equity investments in 21 active unconsolidated entities that are engaged in multifamily residential developments (of which 18 had non-recourse debt and 3 had no debt) and 22 active unconsolidated entities at November 30, 2023. We invest in unconsolidated entities that acquire and develop land to construct multifamily rental properties. Through these entities, we are focusing on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets. Initially, we participated in building multifamily developments and selling them soon after they were completed. Participants in these joint ventures have been financial partners. Joint ventures with financial partners have allowed us to combine our development and construction expertise with access to our partners’ capital.

Each joint venture is governed by an operating agreement that provides significant substantive participating voting rights on major decisions to our partners.

The Multifamily segment includes LMV I, LMV II and Canada Pension Plan Investments Fund, which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets. In June 2024, the LMV I fund sold some of its individual project rental operations. We may decide to monetize additional assets in this segment in the second half of 2024. Combined, these transactions could result in cash proceeds of approximately $250 million. Details of each fund as of and during the six months ended May 31, 2024 are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of May 31, 2024. It does not represent estimates of future cash payments that will be made to reduce debt balances.

									Principal Maturities of Unconsolidated JVs by Period
(In thousands)									Total JV Debt						2024						2025						2026						Thereafter						Other
Debt without recourse to Lennar									$	5,000,458					1,023,659						1,785,912						1,005,542						1,185,345						—
Debt issuance costs									(21,321)						—						—						—						—						(21,321)
Total									$	4,979,137					1,023,659						1,785,912						1,005,542						1,185,345						(21,321)

Lennar Other: Investments in Unconsolidated Entities

As part of the sale of the Rialto investment and asset management platform, we retained the right to receive a portion of payments with regard to carried interests if certain funds meet specified performance thresholds. We periodically receive advance distributions related to the carried interests in order to cover income tax obligations resulting from allocations of taxable income to the carried interests. These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and are recorded as equity in earnings (loss) in the condensed consolidated statement of operations. Our investment in the Rialto funds totaled $146.9 million and $148.7 million as of May 31, 2024 and November 30, 2023, respectively.

As of May 31, 2024 and November 30, 2023, we had strategic technology investments in unconsolidated entities of $203.7 million and $127.5 million, respectively, accounted for under the equity method of accounting. Our strategic technology investments through our LENX business help to enhance the homebuying and home ownership experience, and help us stay at the forefront of homebuilding innovation. Details regarding these investments are included in Note 3 of the Notes to Condensed Consolidated Financial Statements.

Option Contracts

We often obtain access to land through option contracts, which generally enable us to control portions of properties owned by third parties (including land banks) and unconsolidated entities until we have determined whether to exercise the options. Since fiscal year 2020, we have been increasing the percentage of our total homesites that we control through option contracts rather than own.

The table below indicates the number of homesites to which we had access through option contracts with third parties and unconsolidated JVs (i.e., controlled homesites) and homesites owned (excluding homes in inventory):

																																	Years of
May 31, 2024															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															86,439						19,683						106,122
Central															77,375						29,587						106,962
Texas															98,297						18,721						117,018
West															72,617						21,688						94,305
Other															4,828						1,891						6,719
Total homesites															339,556						91,570						431,126						1.2
% of total homesites															79%						21%

																																	Years of
May 31, 2023															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															76,896						25,220						102,116
Central															51,798						36,420						88,218
Texas															75,316						28,734						104,050
West															60,118						24,462						84,580
Other															5,758						1,891						7,649
Total homesites															269,886						116,727						386,613						1.7
% of total homesites															70%						30%

(1)Based on trailing twelve months of home deliveries.

Details on option contracts and related consolidated inventory not owned and exposure are included in Note 9 of the Notes to Condensed Consolidated Financial Statements.

Contractual Obligations and Commercial Commitments

Our contractual obligations and commercial commitments have not changed materially from those reported in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended November 30, 2023, except for redemption/repurchase of $575 million of senior notes and a decrease of $754 million in borrowings under the Financial Services' warehouse repurchase facilities.

(3) Recently Adopted Accounting Pronouncements

See Note 1 of the Notes to Condensed Consolidated Financial Statements included under Item 1 of this Quarterly Report on Form 10-Q for a discussion of recently adopted accounting pronouncements.

(4) Critical Accounting Policies

There have been no significant changes to our critical accounting policies during the six months ended May 31, 2024 as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended November 30, 2023.