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

Overall, the economic environment remains very constructive for homebuilders. While affordability has been a limiting factor for demand and access to homeownership, and inflation and interest rates have hindered the ability of average families to accumulate a down payment to qualify for a mortgage, demand remains strong and the migration to lower interest rates may further activate that demand. Although there have been narratives around challenged consumer confidence, lower rates and controlled inflation should boost that confidence. Lower interest rates should enable many more households to access either first-time homeownership or a move-up purchase. Consumers are employed and are generally confident they will remain employed and believe their compensation will rise. This is most often the foundation of a strong housing market. With that said, as interest rates subside and normalize, and now that the Fed has begun to cut rates, we believe that pent-up demand will be activated, and we are well prepared with growing community count and growing volume.

While demand should remain strong, the supply of homes remains constrained. The housing shortage is a result of years of under-production, exacerbated by continuing shortfalls in production driven by restrictive land permitting and higher impact fees at local levels, and by higher construction costs. Awareness about the need for affordable housing, attainable housing and workforce housing in local markets has begun to generate the first signs of action. Also, the influx of immigrant population has expanded the labor pool, which offsets the pressure on construction costs, while increasing demand for more dwellings. The road ahead appears positive for our homebuilding business.

Against that backdrop, we are adhering to our operating strategy focused on maintaining volume while we are sprinting towards the completion of our five-year marathon of migrating our operating platform from an asset-heavy model to a land-light, asset-light just-in-time finished homesite delivery model. As we have driven production pace, in sync with sales pace, we have used our margin as a point of adjustment to enable consistent production as market conditions have continued to adjust. During the third quarter, we pushed volume by increasing absorption levels in existing communities, which negatively impacted our gross margin.

In the near future, we expect to spin off a company that we call Millrose Properties Inc. ("Millrose"). The goal of the spin-off is to generally complete our migration to an asset-light operating model by spinning off much of our land assets from our balance sheet. We expect Millrose to qualify as a real estate investment trust that will acquire and develop land, and will deliver fully developed homesites under a land option contract on a just in time basis for Lennar and potentially other homebuilders. Millrose is expected to be a self-renewing, permanent source of land acquisition and development capital. We are going to contribute to Millrose, in exchange for its stock, essentially all of our undeveloped, partially developed, and some of our fully developed, land, as well as cash with an expected book value between $6.0 billion and $8.0 billion. As a result of the spin-off, both our inventory and our equity will be reduced by the amount of assets contributed to Millrose. However, our balance sheet will remain very strong after the spin-off and we expect to have ample funds with which to pay down debt and repurchase stock.

As we look ahead to the fourth quarter, given seasonality and customers adjusting to a changing interest rate environment, we are guiding to 22,500 to 23,000 closings next quarter, with a margin that is flat with the third quarter as customers build confidence in the changing economic and interest rate landscape. However, we expect our community count to exceed 1,400 by year-end 2024. We expect to deliver approximately 80,500 to 81,000 homes for the full fiscal 2024, a more than 10% increase over 2023. We expect that 10% growth to continue into 2025.

Lennar will also continue to focus on being a pure play business model and reduce its exposure to non-core assets. It will continue to allocate capital to growth, debt retirement and stock repurchases as appropriate. We expect to repurchase in excess of $2 billion of stock for fiscal year 2024.

As we look ahead to completing a successful 2024, we're well positioned for, and expect to see, much more of the same in the years ahead. We are confident that by design we will continue to grow, perform, and drive Lennar to new levels of consistent and predictable performance.

(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 nine months ended August 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 $1.2 billion, or $4.26 per diluted share, in the third quarter of 2024, compared to net earnings attributable to Lennar of $1.1 billion, or $3.87 per diluted share, in the third quarter of 2023. Excluding mark-to-market gains of $39 million on technology investments and one-time items of $89 million in our Multifamily segment, third quarter net earnings attributable to Lennar in 2024 were $1.1 billion, or $3.90 per diluted share. Excluding mark-to-market losses of $16 million on technology investments, third quarter net earnings attributable to Lennar in 2023 were $1.1 billion or $3.91 per diluted share.

Financial information relating to our operations was as follows:

			Three Months Ended August 31, 2024
(In thousands)			Homebuilding						Financial Services						Multifamily (1)						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	9,017,627					—						—						—						—						9,017,627
Sales of land			19,466						—						—						—						—						19,466
Other revenues			8,599						273,270						93,443						3,637						—						378,949
Total revenues			9,045,692						273,270						93,443						3,637						—						9,416,042
Costs and expenses:
Costs of homes sold			6,989,603						—						—						—						—						6,989,603
Costs of land sold			22,720						—						—						—						—						22,720
Selling, general and administrative expenses			600,719						—						—						—						—						600,719
Other costs and expenses			—						128,870						184,708						17,176						—						330,754
Total costs and expenses			7,613,042						128,870						184,708						17,176						—						7,943,796
Equity in earnings (losses) from unconsolidated entities			25,220						—						170,266						(8,865)						—						186,621
Other income (expense), net and other gains (losses)			20,048						—						(93)						3,376						—						23,331
Lennar Other unrealized gains from technology investments			—						—						—						39,123						—						39,123
Operating earnings			$	1,477,918					144,400						78,908						20,095						—						1,721,321
Corporate general and administrative expenses			—						—						—						—						164,672						164,672
Charitable foundation contribution			—						—						—						—						21,516						21,516
Earnings (loss) before income taxes			$	1,477,918					144,400						78,908						20,095						(186,188)						1,535,133

			Three Months Ended August 31, 2023
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	8,285,873					—						—						—						—						8,285,873
Sales of land			20,430						—						—						—						—						20,430
Other revenues			12,312						266,206						137,394						7,388						—						423,300
Total revenues			8,318,615						266,206						137,394						7,388						—						8,729,603
Costs and expenses:
Costs of homes sold			6,261,578						—						—						—						—						6,261,578
Costs of land sold			18,720						—						—						—						—						18,720
Selling, general and administrative expenses			582,765						—						—						—						—						582,765
Other costs and expenses			—						117,211						139,759						6,155						—						263,125
Total costs and expenses			6,863,063						117,211						139,759						6,155						—						7,126,188
Equity in losses from unconsolidated entities			(4,016)						—						(6,922)						(13,051)						—						(23,989)
Other income (expense), net and other gains (losses)			42,284						—						554						1,313						—						44,151
Lennar Other unrealized losses from technology investments			—						—						—						(15,713)						—						(15,713)
Operating earnings (loss)			$	1,493,820					148,995						(8,733)						(26,218)						—						1,607,864
Corporate general and administrative expenses			—						—						—						—						114,144						114,144
Charitable foundation contribution			—						—						—						—						18,559						18,559
Earnings (loss) before income taxes			$	1,493,820					148,995						(8,733)						(26,218)						(132,703)						1,475,161

			Nine Months Ended August 31, 2024
(In thousands)			Homebuilding						Financial Services						Multifamily (1)						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	24,277,158					—						—						—						—						24,277,158
Sales of land			53,816						—						—						—						—						53,816
Other revenues			26,768						804,713						322,620						9,489						—						1,163,590
Total revenues			24,357,742						804,713						322,620						9,489						—						25,494,564
Costs and expenses:
Costs of homes sold			18,855,087						—						—						—						—						18,855,087
Costs of land sold			43,640						—						—						—						—						43,640
Selling, general and administrative expenses			1,798,306						—						—						—						—						1,798,306
Other costs and expenses			—						382,005						419,580						53,105						—						854,690
Total costs and expenses			20,697,033						382,005						419,580						53,105						—						21,551,723
Equity in earnings (losses) from unconsolidated entities			54,038						—						140,103						(42,374)												151,767
Other income (expense), net and other gains (losses)			132,122						—						(348)						25,101												156,875
Lennar Other unrealized gains from technology investments			—						—						—						12,472												12,472
Operating earnings (loss)			$	3,846,869					422,708						42,795						(48,417)						—						4,263,955
Corporate general and administrative expenses			—						—						—						—						478,975						478,975
Charitable foundation contribution			—						—						—						—						58,004						58,004
Earnings (loss) before income taxes			$	3,846,869					422,708						42,795						(48,417)						(536,979)						3,726,976

			Nine Months Ended August 31, 2023
(In thousands)			Homebuilding						Financial Services						Multifamily						Lennar Other						Corporate						Total
Revenues:
Sales of homes			$	22,016,279					—						—						—						—						22,016,279
Sales of land			46,462						—						—						—						—						46,462
Other revenues			82,196						672,166						432,661						15,419						—						1,202,442
Total revenues			22,144,937						672,166						432,661						15,419						—						23,265,183
Homebuilding costs and expenses:
Costs of homes sold			16,980,746						—						—						—						—						16,980,746
Costs of land sold			52,729						—						—						—						—						52,729
Selling, general and administrative			1,543,259						—						—						—						—						1,543,259
Other costs and expenses			—						331,835						443,069						19,426						—						794,330
Total costs and expenses			18,576,734						331,835						443,069						19,426						—						19,371,064
Equity in losses from unconsolidated entities			(13,109)						—						(29,331)						(62,491)						—						(104,931)
Other income (expense), net and other gains (losses)			59,974						—						1,243						(3,706)						—						57,511
Lennar Other unrealized losses from technology investments			—						—						—						(14,170)						—						(14,170)
Operating earnings (loss)			$	3,615,068					340,331						(38,496)						(84,374)						—						3,832,529
Corporate general and administrative expenses			—						—						—						—						365,002						365,002
Charitable foundation contribution			—						—						—						—						49,292						49,292
Earnings (loss) before income taxes			$	3,615,068					340,331						(38,496)						(84,374)						(414,294)						3,418,235

(1)During both the three and nine months ended August 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 August 31, 2024 versus Three Months Ended August 31, 2023

Revenues from home sales increased 9% in the third quarter of 2024 to $9.0 billion from $8.3 billion in the third quarter of 2023. Revenues were higher primarily due to a 16% increase in the number of home deliveries, partially offset by a 6% decrease in the average sales price of homes delivered. New home deliveries increased to 21,516 homes in the third quarter of 2024 from 18,559 homes in the third quarter of 2023. The average sales price of homes delivered was $422,000 in the third quarter of 2024, compared to $448,000 in the third quarter of 2023. The decrease in average sales price of homes delivered in the third 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 $2.0 billion, or 22.5%, in the third quarter of 2024, compared to $2.0 billion, or 24.4%, in the third quarter of 2023. During the third quarter of 2024, gross margins decreased primarily because revenues per square foot decreased while land costs increased year over year, which was partially offset by a decrease in costs per square foot due to lower material costs as we continued to focus on construction cost savings.

Selling, general and administrative expenses were $600.7 million in the third quarter of 2024, compared to $582.8 million in the third quarter of 2023. As a percentage of revenues from home sales, selling, general and administrative expenses decreased to 6.7% in the third quarter of 2024, from 7.0% in the third quarter of 2023, primarily due to a decrease in broker commissions and the benefits of our technology efforts.

During the three months ended August 31, 2024, our homebuilding operating earnings included $33.8 million of interest income, compared to $38.2 million of interest income in the three months ended August 31, 2023.

Operating earnings for the Financial Services segment were $144.4 million ($143.6 million net of noncontrolling interests) in the third quarter of 2024, compared to $149.0 million ($148.3 million net of noncontrolling interests) in the third quarter of 2023. The decrease in operating earnings was primarily due to lower lock volume and margin in the mortgage business, partially offset by higher volume in the title business as a result of increased deliveries year over year.

Operating earnings for the Multifamily segment were $78.9 million ($79.0 million net of noncontrolling interests) in the third quarter of 2024, compared to an operating loss of $8.7 million in the third quarter of 2023. The increase in operating earnings was due to a $179.0 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of non-core assets as we focus on immediately monetizing these assets. Operating earnings for the Lennar Other segment were $20.1 million in the third quarter of 2024, compared to an operating loss of $26.2 million in the

third quarter of 2023. The Lennar Other operating earnings for the third quarter of 2024 were primarily due to mark-to-market gains on our publicly traded technology investments.

In the third quarter of 2024 and 2023, we had tax provisions of $347.9 million and $358.2 million, respectively, which resulted in an overall effective income tax rate of 23.0% 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 tax credits. In the three months ended August 31, 2024, our overall effective income tax rate was lower than last year primarily due to additional tax credits recognized during the three months ended August 31, 2024.

Nine Months Ended August 31, 2024 versus Nine Months Ended August 31, 2023

Revenues from home sales were $24.3 billion and $22.0 billion in the nine months ended August 31, 2024 and 2023, respectively. Revenues were higher primarily due to an 18% 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 58,004 homes in the nine months ended August 31, 2024 from 49,292 homes in the nine months ended August 31, 2023. The average sales price of homes delivered was $421,000 in the nine months ended August 31, 2024, compared to $448,000 in the nine months ended August 31, 2023. The decrease in average sales price of homes delivered in the nine months ended August 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 $5.4 billion, or 22.3%, in the nine months ended August 31, 2024, compared to $5.0 billion, or 22.9%, in the nine months ended August 31, 2023. During the nine months ended August 31, 2024, gross margins decreased primarily because revenues per square foot decreased while land costs increased year over year, which was partially offset by a decrease in costs per square foot due to lower material costs as we continued to focus on construction cost savings.

Selling, general and administrative expenses were $1.8 billion in the nine months ended August 31, 2024, compared to $1.5 billion in the nine months ended August 31, 2023. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.4% in the nine months ended August 31, 2024, from 7.0% in the nine months ended August 31, 2023, primarily due to an increase in digital marketing and advertising costs to generate more direct sales, professional expenses and insurance costs.

During the nine months ended August 31, 2024, our homebuilding operating earnings included $134.6 million of interest income due to an increase in cash balances and higher interest rates. During the nine months ended August 31, 2023, our homebuilding operating earnings included $102.7 million of interest income, which was partially offset by an impairment of $36.8 million of an investment in a joint venture.

Operating earnings for the Financial Services segment were $422.7 million ($420.5 million net of noncontrolling interests) in the nine months ended August 31, 2024, compared to $340.3 million ($338.7 million net of noncontrolling interests) in the nine months ended August 31, 2023. The increase in operating earnings was primarily due to higher volume from increased capture rate and Lennar deliveries in the mortgage business. There was also an increase in profitability in our title business primarily due to benefits of our technology efforts.

Operating earnings for the Multifamily segment were $42.8 million ($43.1 million net of noncontrolling interests) in the nine months ended August 31, 2024, compared to an operating loss of $38.5 million ($38.4 million net of noncontrolling interests) in the nine months ended August 31, 2023. The increase in operating earnings was due to a $179 million one-time net gain from the sale of assets in our LMV Fund I, partially offset by a one-time $90.0 million write-down of non-core assets as we focus on immediately monetizing these assets. Operating loss for the Lennar Other segment was $47.3 million in the nine months ended August 31, 2024, compared to operating loss of $85.8 million in the nine months ended August 31, 2023. The Lennar Other operating loss for the nine months ended August 31, 2024 was primarily related to operating losses from certain strategic investments, which was partially offset by $12.5 million of mark-to-market gains 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 nine months ended August 31, 2023 was primarily related to operating losses from certain strategic investments.

For the nine months ended August 31, 2024 and 2023, we had tax provisions of $859.2 million and $824.2 million, respectively, which resulted in overall effective income tax rates of 23.2% and 24.2%, respectively. For both periods, our effective income tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits. In the nine months ended August 31, 2024, our overall effective income tax rate was lower than last year primarily due to additional tax credits recognized during the three months ended August 31, 2024.

Homebuilding Segments

At August 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 August 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 from Unconsolidated Entities						Other Income, net						Operating Earnings
East			$	2,121,552					1,568,747						26.1		%				388,680						1,810						2,828						8,186						678						402,182
Central			2,138,813						1,648,054						22.9		%				339,983						(3,545)						682						946						5,150						343,216
Texas			1,283,781						993,685						22.6		%				195,938						(132)						594						—						1,367						197,767
West			3,470,255						2,773,873						20.1		%				507,569						(1,387)						1,337						1,624						5,305						514,448
Other (2)			3,226						5,244						(62.6)		%				(4,865)						—						3,158						14,464						7,548						20,305
Totals			$	9,017,627					6,989,603						22.5		%				1,427,305						(3,254)						8,599						25,220						20,048						1,477,918

			Three Months Ended August 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, net						Operating Earnings (Loss)
East			$	2,179,002					1,518,360						30.3		%				487,780						712						3,183						5,699						16,935						514,309
Central			1,816,971						1,383,111						23.9		%				292,456						(685)						1,762						1,028						6,381						300,942
Texas			1,174,858						878,430						25.2		%				214,919						749						907						—						3,306						219,881
West			3,108,783						2,467,213						20.6		%				464,351						934						2,421						(90)						12,352						479,968
Other (2)			6,259						14,464						(131.1)		%				(17,976)						—						4,039						(10,653)						3,310						(21,280)
Totals			$	8,285,873					6,261,578						24.4		%				1,441,530						1,710						12,312						(4,016)						42,284						1,493,820

			Nine Months Ended August 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			$	6,216,150					4,566,091						26.5		%				1,122,413						13,406						8,153						20,600						40,141						1,204,713
Central			5,240,508						4,089,604						22.0		%				720,332						(3,996)						2,886						952						22,528						742,702
Texas			3,548,464						2,737,784						22.8		%				536,931						1,302						1,886						(3)						10,808						550,924
West			9,255,650						7,439,477						19.6		%				1,262,084						(536)						4,545						5,337						30,742						1,302,172
Other (2)			16,386						22,131						(35.1)		%				(17,995)						—						9,298						27,152						27,903						46,358
Totals			$	24,277,158					18,855,087						22.3		%				3,623,765						10,176						26,768						54,038						132,122						3,846,869

			Nine Months Ended August 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			$	5,974,745					4,197,812						29.7		%				1,312,661						(1,141)						26,815						12,057						35,816						1,386,208
Central			4,621,552						3,596,740						22.2		%				656,869						6,003						24,124						799						16,983						704,778
Texas			3,329,348						2,586,507						22.3		%				512,886						16						6,090						—						9,269						528,261
West			8,075,810						6,573,159						18.6		%				1,036,142						(11,145)						12,906						1,572						26,465						1,065,940
Other (2)			14,824						26,528						(79.0)		%				(26,284)						—						12,261						(27,537)						(28,559)						(70,119)
Totals			$	22,016,279					16,980,746						22.9		%				3,492,274						(6,267)						82,196						(13,109)						59,974						3,615,068

(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 August 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			5,479						5,072						$	2,171,425					2,211,629						$	396,000					436,000
Central			5,301						4,340						2,138,813						1,816,970						403,000						419,000
Texas			5,067						4,102						1,283,781						1,174,859						253,000						286,000
West			5,663						5,036						3,470,255						3,108,783						613,000						617,000
Other			6						9						3,225						6,258						538,000						695,000
Total			21,516						18,559						$	9,067,499					8,318,499						$	422,000					448,000

Of the total homes delivered listed above, 124 homes with a dollar value of $49.9 million and an average sales price of $402,000 represent home deliveries from unconsolidated entities for the three months ended August 31, 2024, compared to 66 home deliveries with a dollar value of $32.6 million and an average sales price of $494,000 for the three months ended August 31, 2023.

			Nine Months Ended August 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			15,732						13,820						$	6,344,164					6,069,961						$	403,000					439,000
Central			13,049						10,779						5,240,508						4,621,552						402,000						429,000
Texas			13,999						11,431						3,548,464						3,329,349						253,000						291,000
West			15,193						13,243						9,255,650						8,075,810						609,000						610,000
Other			31						19						16,385						14,824						529,000						780,000
Total			58,004						49,292						$	24,405,171					22,111,496						$	421,000					448,000

Of the total homes delivered listed above, 271 homes with a dollar value of $128.0 million and an average sales price of $472,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2024, compared to 201 home deliveries with a dollar value of $95.2 million and an average sales price of $474,000 for the nine months ended August 31, 2023.

Sales Incentives (1):

			Three Months Ended August 31,																											Nine Months Ended August 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						$	55,000					30,100						12.2		%				6.5		%				$	50,000					30,100						11.1		%				6.4		%
Central						38,100						28,200						8.6		%				6.3		%				40,000						31,900						9.1		%				6.9		%
Texas						53,400						49,300						17.4		%				14.7		%				52,200						57,500						17.1		%				16.5		%
West						46,100						39,200						7.0		%				6.0		%				46,900						48,800						7.1		%				7.4		%
Other						46,200						89,800						7.9		%				11.4		%				74,800						95,300						12.4		%				10.9		%
Total						$	48,100					36,400						10.2		%				7.5		%				$	47,500					42,000						10.1		%				8.6		%

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

New Orders (2):

			Three Months Ended August 31,
			2024						2023						2024						2023						2024						2023						2024						2023
			Active Communities												Homes												Dollar Value (In thousands)												Average Sales Price
East			315						327						4,888						5,132						$	1,966,782					2,158,921						$	402,000					421,000
Central			343						312						5,158						4,650						2,030,572						1,909,196						394,000						411,000
Texas			245						235						5,217						4,730						1,307,688						1,302,268						251,000						275,000
West			378						375						5,317						5,140						3,254,573						3,261,380						612,000						635,000
Other			2						4						7						14						2,444						7,877						349,000						563,000
Total			1,283						1,253						20,587						19,666						$	8,562,059					8,639,642						$	416,000					439,000

Of the total homes listed above, 114 homes with a dollar value of $69.1 million and an average sales price of $606,000 represent homes in 10 active communities from unconsolidated entities for the three months ended August 31, 2024, compared to 82 homes with a dollar value of $42.0 million and an average sales price of $512,000 in seven active communities for the three months ended August 31, 2023.

			Nine Months Ended August 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			14,414						13,995						$	5,898,262					5,999,802						$	409,000					429,000
Central			14,764						11,471						5,893,358						4,786,293						399,000						417,000
Texas			14,861						11,604						3,760,078						3,261,481						253,000						281,000
West			15,979						14,650						9,929,956						9,159,865						621,000						625,000
Other			38						25						17,663						17,106						465,000						684,000
Total			60,056						51,745						$	25,499,317					23,224,547						$	425,000					449,000

Of the total new orders listed above, 234 homes with a dollar value of $134.3 million and an average sales price of $574,000 represent new orders from unconsolidated entities for the nine months ended August 31, 2024, compared to 252 new orders with a dollar value of $117.3 million and an average sales price of $465,000 for the nine months ended August 31, 2023.

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

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

			Three Months Ended												Nine Months Ended
			August 31,												August 31,
			2024						2023						2024						2023
East			17		%				13		%				17		%				16		%
Central			10		%				10		%				10		%				15		%
Texas			17		%				17		%				17		%				20		%
West			14		%				13		%				12		%				13		%
Other			30		%				—		%				14		%				7		%
Total			14		%				13		%				14		%				16		%

Backlog:

			At August 31,
			2024						2023						2024						2023						2024						2023
			Homes												Dollar Value (In thousands)												Average Sales Price
East			5,262						8,336						$	2,268,969					3,512,548						$	431,000					421,000
Central			4,878						5,261						2,028,466						2,257,788						416,000						429,000
Texas			2,757						2,870						694,104						769,216						252,000						268,000
West			4,037						4,847						2,753,198						3,310,533						682,000						683,000
Other			10						7						2,805						3,446						280,000						492,000
Total			16,944						21,321						$	7,747,542					9,853,531						$	457,000					462,000

Of the total homes in backlog listed above, 110 homes with a backlog dollar value of $80.7 million and an average sales price of $734,000 represent the backlog from unconsolidated entities at August 31, 2024, compared to 217 homes with a backlog dollar value of $99.8 million and an average sales price of $460,000 at August 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 contracts 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 contracts 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 August 31, 2024 versus Three Months Ended August 31, 2023

Homebuilding East: Revenues from home sales decreased in the third quarter of 2024 compared to the third quarter of 2023, primarily due to a decrease in the average sales price of homes delivered in all the states in the segment except in New Jersey and Pennsylvania, which was partially offset by an increase in the number of home deliveries in all the states in the segment. The decrease in the average sales price of homes delivered in Alabama and Florida 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 New Jersey and Pennsylvania was primarily due to product mix. 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. In the third 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 third quarter of 2024 compared to the third 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 Illinois and Maryland. The increase in the number of home deliveries in Georgia, Illinois, Indiana, Maryland, 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 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 third 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, this resulted in a decrease in gross margin percentage of home deliveries.

Homebuilding Texas: Revenues from home sales increased in the third quarter of 2024 compared to the third 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 third quarter of 2024, a decrease in revenues per square foot was 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 decreased year over year.

Homebuilding West: Revenues from home sales increased in the third quarter of 2024 compared to the third quarter of 2023, primarily due to an increase in the number of home deliveries in all the states in the segment except in Colorado and Oregon, 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, Idaho, Oregon and Utah. The increase in the number of home deliveries in Arizona, California, Idaho, Nevada, 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 Colorado and Oregon 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, Colorado, Nevada 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, Idaho, Oregon and Utah was primarily due to product mix. In the third 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 decreased year over year.

Nine Months Ended August 31, 2024 vers**us Nine Months Ended August 31, 2023

Homebuilding East: Revenues from home sales increased in the nine months ended August 31, 2024 compared to the nine months ended August 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 nine months ended August 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 nine months ended August 31, 2024 compared to the nine months ended August 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 Illinois and Maryland. The increase in the number of home deliveries in Georgia, Illinois, Indiana, Maryland, 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 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 nine months ended August 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 nine months ended August 31, 2024, compared to the nine months ended August 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 through an increased use of incentives and product mix. In the nine months ended August 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, gross margin percentage of home deliveries increased year over year.

Homebuilding West: Revenues from home sales increased in the nine months ended August 31, 2024 compared to the nine months ended August 31, 2023, primarily due to an increase in the number of home deliveries in all the states in the segment while the average sales price of homes delivered was flat. 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 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, Idaho, Nevada, Oregon and Utah was primarily due to product mix. In the nine months ended August 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												Nine Months Ended
			August 31,												August 31,
(Dollars in thousands)			2024						2023						2024						2023
Dollar value of mortgages originated			$	5,139,000					4,435,000						14,249,000						11,531,000
Number of mortgages originated			14,300						11,900						39,400						31,200
Mortgage capture rate of Lennar homebuyers			84%						81%						84%						79%
Number of title and closing service transactions			21,900						18,900						59,900						50,800

At August 31, 2024 and November 30, 2023, the carrying value of Financial Services' commercial mortgage-backed securities was $138.0 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)			August 31, 2024						November 30, 2023
Multifamily investments in unconsolidated entities			$	544,635					599,852
Lennar's net investment in Multifamily			1,106,522						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. As of November 30, 2023, there were 38 rental operation projects in LMV I. During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of the individual rental operation projects of LMV I as the fund has come to the end of its contractual life. During the three months ended August 31, 2024, 27 LMV I rental operation projects were sold to various third-party buyers. We recognized a net gain of $179.0 million on the sale of these rental operation projects which was recorded as equity in earnings (losses) in the condensed consolidated statement of operations. As a result, we received net cash distributions of $147.3 million during the three months ended August 31, 2024. The remaining LMV I rental operation projects are expected to be monetized in the near term.

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 August 31, 2024 and November 30, 2023, we had $854.3 million and $657.9 million, respectively, of assets in our Lennar Other segment, which included investments in unconsolidated entities of $351.2 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												Nine Months Ended
			August 31,												August 31,
(In thousands)			2024						2023						2024						2023
Blend Labs (BLND)			$	2,270					386						5,921						(360)
Hippo (HIPO)			6,609						(17,166)						33,795						(14,933)
Opendoor (OPEN)			(564)						23,638						(16,156)						38,459
SmartRent (SMRT)			(5,634)						(1,707)						(12,206)						8,219
Sonder (SOND)			71						(91)						82						(549)
Sunnova (NOVA)			36,371						(20,773)						1,036						(45,006)
Lennar Other unrealized gains (losses) from technology investments			$	39,123					(15,713)						12,472						(14,170)

(2) Financial Condition and Capital Resources

At August 31, 2024, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $4.3 billion, compared to $6.6 billion at November 30, 2023 and $4.1 billion at August 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 August 31, 2024, we had $4.0 billion of homebuilding cash and cash equivalents and no outstanding borrowings under our $2.2 billion revolving credit facility, thereby providing approximately $6.2 billion of available capacity.

Operating Cash Flow Activities

During the nine months ended August 31, 2024 and 2023, cash provided by operating activities totaled $1.4 billion and $2.6 billion, respectively. During the nine months ended August 31, 2024, cash provided by operating activities was impacted

primarily by our net earnings and a decrease in loans held-for-sale of $245 million primarily related to the sale of loans originated by our Financial Services segment. This was offset by an increase in inventories due to strategic land purchases, land development and construction costs of $708 million, an increase in deposits and pre-acquisition costs on real estate of $985 million as we increased the percentage of controlled homesites, and a decrease in accounts payable and other liabilities of $176 million.

During the nine months ended August 31, 2023, cash provided by operating activities was impacted primarily by our net earnings, a decrease in loans held-for-sale of $434 million primarily related to the sale of loans originated by our Financial Services segment and a decrease in receivables of $168 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 $882 million, primarily due to the payment of income taxes and an increase in other assets of $105 million.

Investing Cash Flow Activities

During the nine months ended August 31, 2024 and 2023, cash used in investing activities totaled $177 million and $115 million, respectively. During the nine months ended August 31, 2024, our cash used in investing activities was primarily due to cash contributions of $312 million to unconsolidated entities, which included (1) $164 million to Homebuilding unconsolidated entities, (2) $131 million to Lennar other unconsolidated entities and (3) $17 million to Multifamily unconsolidated entities and $130 million of net additions of operating properties and equipment. This was partially offset by distributions of capital from unconsolidated entities of $237 million, which primarily included (1) $53 million from Homebuilding unconsolidated entities, (2) $18 million from our Lennar Other unconsolidated entities and (3) $166 million from Multifamily entities.

During the nine months ended August 31, 2023, our cash used in investing activities was primarily due to cash contributions of $153 million to unconsolidated entities, which included (1) $75 million to Homebuilding unconsolidated entities, (2) $58 million to Lennar Other unconsolidated entities, and (3) $20 million to Multifamily unconsolidated entities. This was partially offset by distributions of capital from unconsolidated entities of $70 million, which primarily included (1) $48 million from Homebuilding unconsolidated entities, (2) $21 million from our Lennar Other unconsolidated entities, and (3) $1 million from Multifamily entities.

Financing Cash Flow Activities

During the nine months ended August 31, 2024 and 2023, cash used in financing activities totaled $3.5 billion and $3.2 billion, respectively. During the nine months ended August 31, 2024, cash used in financing activities was primarily due to (1) $618 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) $1.7 billion of repurchases of our common stock, which included $1.6 billion of repurchases under our repurchase program and $86 million of repurchases related to our equity compensation plan; (5) $414 million of dividend payments; and (6) $125 million of net payments from liabilities related to consolidated inventory not owned due to activity with land banks.

During the nine months ended August 31, 2023, cash used in financing activities was primarily due to (1) $981 million of net repayments under our Financial Services' warehouse facilities; (2) $842 million of repurchases of our common stock, which included $769 million of repurchases under our repurchase program and $72 million of repurchases related to our equity compensation plan; (3) the early redemption of $425 million aggregate principal amount of our 5.875% senior notes due November 2024; (4) $208 million of repurchases of our senior notes due in fiscal year 2024; (5) $325 million of dividend payments; and (6) $256 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)			August 31, 2024						November 30, 2023						August 31, 2023
Homebuilding debt			$	2,263,256					2,816,482						3,320,119
Stockholders’ equity			27,412,520						26,580,664						25,656,619
Total capital			$	29,675,776					29,397,146						28,976,738
Homebuilding debt to total capital			7.6		%				9.6		%				11.5		%
Homebuilding debt			$	2,263,256					2,816,482						3,320,119
Less: Homebuilding cash and cash equivalents			4,037,405						6,273,724						3,887,809
Net Homebuilding debt			$	(1,774,149)					(3,457,242)						(567,690)
Net Homebuilding debt to total capital (1)			(6.9)		%				(15.0)		%				(2.3)		%

(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 August 31, 2024, Homebuilding debt to total capital was lower compared to both November 30, 2023 and August 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 as well as cash 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 and are actively engaged with the Securities and Exchange Commission in their review process. This project is ongoing and while we aim to work efficiently to consummate the transaction in the near term, there is no guarantee that the transaction will be completed on any given timeline. We expect the new company to qualify as a real estate investment trust and to operate as a permanent capital vehicle that will acquire and develop homesites and give options to acquire them on a “just-in-time” basis for Lennar and other customers. 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:

			Nine Months Ended August 31,
(Dollars in thousands)			2024						2023
Homebuilding average debt outstanding			$	2,512,139					$	3,890,590
Average interest rate			4.8%						4.9%
Interest incurred			$	100,056					146,206

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

(In thousands)						August 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 August 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 August 31, 2024:

(Dollars in thousands)			Covenant Level						Level Achieved as of August 31, 2024
Minimum net worth test			$	13,966,671					20,791,911
Maximum leverage ratio			65.0%						(4.9)%
Liquidity test			1.00						(134.00)

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. At August 31 2024, we have a remaining authorization to repurchase $3.9 billion in value of our Class A or B common stock. The details of our Class A and Class B common stock repurchases under the authorized repurchase program for the nine months ended August 31, 2024 and 2023 are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

During the nine months ended August 31, 2024, treasury shares increased by 11.2 million shares primarily due to our repurchase of 10.6 million shares of Class A and Class B common stock through our stock repurchase program. During the nine months ended August 31, 2023, treasury shares increased by 7.8 million shares primarily due to our repurchase of 7.0 million shares of Class A and Class B common stock through our stock repurchase program.

On September 25, 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 October 24, 2024 to holders of record at the close of business on October 9, 2024. On July 19, 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 July 5, 2024, as declared by its Board of Directors on June 20, 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 August 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 August 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)			August 31, 2024						November 30, 2023
Due from non-guarantor subsidiaries			$	24,891,180					22,020,227
Equity method investments			1,083,982						986,508
Total assets			49,589,049						45,830,841
Total liabilities			9,557,259						9,181,456

			Nine Months Ended
(In thousands)			August 31, 2024
Total revenues			$	24,188,851
Operating earnings			3,743,914
Earnings before income taxes			3,218,252
Net earnings attributable to Lennar			2,470,852

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 August 31, 2024.

Homebuilding: Investments in Unconsolidated Entities

As of August 31, 2024, we had equity investments in 49 active Homebuilding and land unconsolidated entities (of which 5 had recourse debt, 14 had non-recourse debt and 30 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 August 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									$	1,312,718					284,068						186,719						147,401						694,530						—
Land seller and other debt without recourse to Lennar									2,547						—						—						—						2,547						—
Maximum recourse debt exposure to Lennar									44,210						—						—						12,300						31,910						—
Debt issuance costs									(4,972)						—						—						—						—						(4,972)
Total									$	1,354,503					284,068						186,719						159,701						728,987						(4,972)

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 August 31, 2024, Multifamily had equity investments in 22 active unconsolidated entities that are engaged in multifamily residential developments (of which 18 had non-recourse debt and 4 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. During the three months ended August 31, 2024, the LMV I fund sold some of its individual rental operation projects which resulted in a net gain of $179.0 million and received net cash distributions of $147.3 million. The remaining LMV I rental operation projects are expected to be monetized in the near term. Combined, these transactions could result in cash proceeds of approximately $250 million. Details of each fund as of and during the nine months ended August 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 August 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									$	3,546,828					872,729						929,788						747,746						996,565						—
Debt issuance costs									(17,392)						—						—						—						—						(17,392)
Total									$	3,529,436					872,729						929,788						747,746						996,565						(17,392)

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 $145.7 million and $148.7 million as of August 31, 2024 and November 30, 2023, respectively.

As of August 31, 2024 and November 30, 2023, we had strategic technology investments in unconsolidated entities of $205.5 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
August 31, 2024															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															90,809						18,574						109,383
Central															89,055						28,386						117,441
Texas															107,395						16,645						124,040
West															77,239						21,152						98,391
Other															4,828						1,891						6,719
Total homesites															369,326						86,648						455,974						1.1
% of total homesites															81%						19%

																																	Years of
August 31, 2023															Controlled Homesites						Owned Homesites						Total Homesites						Supply Owned (1)
East															83,102						21,929						105,031
Central															55,650						35,073						90,723
Texas															77,866						24,946						102,812
West															61,721						23,176						84,897
Other															5,411						1,891						7,302
Total homesites															283,750						107,015						390,765						1.5
% of total homesites															73%						27%

(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 $553 million of senior notes and a decrease of $618 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 nine months ended August 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.