v3.25.2
Operating and Reporting Segments
 6 Months Ended
May 31, 2025
Segment Reporting [Abstract]  
Operating and Reporting Segments Operating and Reporting Segments
The Company's homebuilding operations construct and sell homes primarily for first-time, move-up and active adult homebuyers primarily under the Lennar brand name. In addition, the Company's homebuilding operations purchase, develop and sell land to third parties. The Company's chief operating decision makers manage and assess the Company’s performance at a regional level. Therefore, the Company performed an assessment of its operating segments in accordance with ASC 280, Segment Reporting, and determined that the following are its operating and reportable segments:
Homebuilding segments: (1) East (2) Central (3) South Central (4) West
(5) Financial Services
(6) Multifamily
(7) Lennar Other
The assets and liabilities related to the Company’s segments were as follows:
(In thousands)May 31, 2025
Assets:HomebuildingFinancial
Services		MultifamilyLennar
Other		Total
Cash and cash equivalents$1,168,143 202,647 14,211 22,693 1,407,694 
Restricted cash23,987 47,334 — — 71,321 
Receivables, net (1)995,664 440,853 34,226 — 1,470,743 
Inventory owned and consolidated inventory not owned14,036,147 — 480,653 — 14,516,800 
Deposits and pre-acquisition costs on real estate5,265,591 — 13,965 — 5,279,556 
Investments in unconsolidated entities (2)2,699,981 2,806 518,453 367,989 3,589,229 
Loans held-for-sale (3)— 1,887,000 — — 1,887,000 
Investments in equity securities (4)— — — 216,188 216,188 
Investments available-for-sale (5)— — — 39,069 39,069 
Loans held-for-investment, net— 52,489 — — 52,489 
Investments held-to-maturity— 134,280 — — 134,280 
Goodwill3,442,359 189,699 — — 3,632,058 
Other assets1,759,645 102,129 71,747 144,598 2,078,119 
Total assets$29,391,517 3,059,237 1,133,255 790,537 34,374,546 
Liabilities:
Senior notes and other debts payable, net$2,791,987 1,416,138 — — 4,208,125 
Liabilities related to consolidated inventory not owned2,317,996 — — — 2,317,996 
Accounts payable and other liabilities4,710,499 176,248 134,922 94,874 5,116,543 
Total liabilities$9,820,482 1,592,386 134,922 94,874 11,642,664 
(In thousands)November 30, 2024
Assets:HomebuildingFinancial
Services		MultifamilyLennar
Other		Total
Cash and cash equivalents$4,662,643 175,382 30,948 40,691 4,909,664 
Restricted cash11,799 68,747 — — 80,546 
Receivables, net (1)1,053,211 545,752 53,595 — 1,652,558 
Inventory owned and consolidated inventory not owned19,719,551 — 592,879 — 20,312,430 
Deposits and pre-acquisition costs on real estate3,625,372 — 32,643 — 3,658,015 
Investments in unconsolidated entities1,344,836 — 503,303 379,435 2,227,574 
Loans held-for-sale (3)— 2,250,718 — — 2,250,718 
Investments in equity securities (4)— — — 347,810 347,810 
Investments available-for-sale (5)— — — 40,578 40,578 
Loans held-for-investment, net— 60,969 — — 60,969 
Investments held-to-maturity— 135,646 — — 135,646 
Goodwill3,442,359 189,699 — — 3,632,058 
Other assets1,734,698 89,637 93,450 86,430 2,004,215 
Total assets$35,594,469 3,516,550 1,306,818 894,944 41,312,781 
Liabilities:
Senior notes and other debt payable, net$2,258,283 1,930,956 — — 4,189,239 
Liabilities related to consolidated inventory not owned3,563,934 — — — 3,563,934 
Accounts payable and other liabilities5,040,992 209,752 181,883 105,756 5,538,383 
Total liabilities$10,863,209 2,140,708 181,883 105,756 13,291,556 
(1)Receivables, net for Financial Services are primarily related to loans sold to investors for which the Company had not yet been paid as of May 31, 2025 and November 30, 2024, respectively.
(2)Investments in unconsolidated entities as of May 31, 2025 include the carrying value of 20% of the total outstanding shares of Millrose common stock, which was $1.2 billion.
(3)Loans held-for-sale related to unsold residential and commercial loans carried at fair value.
(4)Investments in equity securities include investments of $133.5 million and $143.0 million without readily available fair values as of May 31, 2025 and November 30, 2024, respectively.
(5)Investments available-for-sale are carried at fair value with changes in fair value recorded as a component of accumulated other comprehensive income (loss) in the condensed consolidated balance sheet.
Financial information relating to the Company’s segments was as follows:
Three Months EndedSix Months Ended
May 31,May 31,
(In thousands)2025202420252024
Revenues:
Homebuilding$7,843,862 8,381,059 15,127,732 15,312,050 
Financial Services 298,098 281,723 575,175 531,443 
Multifamily230,305 99,500 293,501 229,177 
Lennar Other5,237 3,310 12,639 5,852 
$8,377,502 8,765,592 16,009,047 16,078,522 
Earnings (loss) before income taxes:
Homebuilding$728,234 1,340,155 1,537,507 2,368,951 
Financial Services157,280 147,012 300,763 278,308 
Multifamily(14,754)(20,474)(14,777)(36,113)
Lennar Other(52,895)(28,964)(142,178)(68,512)
Corporate and Unallocated (1)(175,984)(176,672)(341,196)(350,791)
$641,881 1,261,057 1,340,119 2,191,843 
(1)Corporate and unallocated consists primarily of corporate general and administrative expenses and charitable foundation contributions.
Homebuilding Segments
Information about homebuilding activities in states which are not economically similar to other states in the same geographic area is grouped under “Homebuilding Other,” which is not considered a reportable segment.
Evaluation of segment performance is based primarily on operating earnings (loss) before income taxes. Operations of the Company’s Homebuilding segments primarily include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through the Company’s unconsolidated entities. Operating earnings (loss) for the Homebuilding segments consist of revenues generated from the sales of homes and land, other revenues from management fees and forfeited deposits, equity in earnings (losses) from unconsolidated entities and other income (expense), net, less the cost of homes sold and land sold, and selling, general and administrative expenses incurred by the segment. Homebuilding Other also includes management of a fund that acquires single-family homes and holds them as rental properties.
The Company renamed its Texas reportable Homebuilding segment to South Central as a result of the Rausch acquisition (see Note 2 of the Notes to Condensed Consolidated Financial Statements) in order to streamline and synergize geographic homebuilding operations, assess performance, and allocate resources across the Company’s geographic homebuilding segments. The Company’s reportable Homebuilding segments and all other homebuilding operations not required to be reported separately have homebuilding divisions located in:
East: Florida, New Jersey and Pennsylvania
Central: Alabama, Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee,
and Virginia     
South Central: Arkansas, Kansas, Missouri, Oklahoma and Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC (“FivePoint”), and Millrose investment.
The assets related to the Company’s Homebuilding segments were as follows:
(In thousands)May 31, 2025November 30, 2024
East$5,720,593 6,967,571 
Central4,660,446 5,567,451 
South Central4,296,364 4,238,587 
West 10,424,040 12,148,434 
Other2,859,356 1,729,407 
Corporate and Unallocated 1,430,718 4,943,019 
Total Homebuilding$29,391,517 35,594,469 
Financial information relating to the Company’s Homebuilding segments was as follows:
Three Months EndedSix Months Ended
May 31,May 31,
(In thousands)2025202420252024
Revenues
East$1,707,226 2,138,410 3,360,981 4,016,347 
Central1,771,545 1,771,279 3,331,553 3,212,593 
South Central1,523,398 1,196,425 2,690,226 2,268,211 
West 2,833,297 3,265,467 5,728,230 5,795,529 
Other8,396 9,478 16,742 19,370 
$7,843,862 8,381,059 15,127,732 15,312,050 
Operating earnings
East$175,004 427,048 397,626 803,958 
Central163,839 236,436 299,291 398,059 
South Central136,689 184,576 258,772 353,157 
West245,424 478,937 544,205 787,724 
Other7,278 13,158 37,613 26,053 
$728,234 1,340,155 1,537,507 2,368,951 
Financial Services
Operations of the Financial Services segment include mortgage financing, title and closing services primarily for buyers of the Company’s homes. They also include originating and selling into securitizations commercial mortgage loans through its LMF Commercial business. Financial Services’ operating earnings consist of revenues generated primarily from mortgage financing, title and closing services, and sales of property and casualty insurance, less the cost of such services and certain selling, general and administrative expenses incurred by the segment. The Financial Services segment operates generally in the same states as the Company’s homebuilding operations.
At May 31, 2025, the Financial Services segment had warehouse facilities which were all 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows:
Maximum Aggregate Commitment
(In thousands)Committed AmountUncommitted AmountTotal
Residential facilities maturing:
June 2025 (1)$560,000 — 560,000 
August 2025325,000 325,000 650,000 
October 202550,000 100,000 150,000 
May 2026250,000 250,000 500,000 
December 2026375,000 — 375,000 
Total residential facilities$1,560,000 675,000 2,235,000 
LMF commercial facilities maturing:
December 2025200,000 — 200,000 
January 2026100,000 — 100,000 
Total LMF commercial facilities$300,000 — 300,000 
Total$2,535,000 
(1)Subsequent to May 31, 2025, the maturity date was extended to September 2025.
The Financial Services segment uses residential mortgage loan warehouse facilities to finance its residential lending activities until the mortgage loans are sold to investors and the proceeds are collected. The facilities are non-recourse to the Company and are expected to be renewed or replaced with other facilities when they mature. The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80% interests in the originated commercial loans financed.
Borrowings and collateral under the facilities were as follows:
(In thousands)May 31, 2025November 30, 2024
Borrowings under residential facilities$1,211,428 1,776,045 
Collateral under residential facilities1,261,797 1,837,833 
Borrowings under LMF Commercial facilities80,368 28,747 
If the facilities are not renewed or replaced, the borrowings under the lines of credit will be repaid by selling the mortgage loans held-for-sale to investors and by collecting receivables on loans sold but not yet paid for. Without the facilities, the Financial Services segment would have to use cash from operations and other funding sources to finance its lending activities.
Substantially all of the residential loans the Financial Services segment originates are sold within a short period in the secondary mortgage market on a servicing released, non-recourse basis. After the loans are sold, the Company retains potential liability for possible claims by purchasers that it breached certain limited industry-standard representations and warranties in the loan sale agreements. Purchasers sometimes try to defray losses by purporting to have found inaccuracies related to sellers’ representations and warranties in particular loan sale agreements and seeking to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold. The Company’s mortgage operations have established accruals for possible losses associated with mortgage loans previously originated and sold to investors. The Company establishes accruals for such possible losses based upon, among other things, an analysis of repurchase requests received, an estimate of potential repurchase claims not yet received and actual past repurchases and losses through the disposition of affected loans, as well as previous settlements. While the Company believes that it has adequately reserved for known losses and projected repurchase requests, given the volatility in the residential mortgage market and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving repurchase claims exceed the Company’s expectations, additional recourse expense may be incurred. The provision for loan losses was immaterial for both the three and six months ended May 31, 2025 and 2024. Loan origination liabilities were $16.8 million and $16.7 million as of May 31, 2025 and November 30, 2024, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets.
LMF Commercial - loans held-for-sale
LMF Commercial originated commercial loans as follows:
Three Months EndedSix Months Ended
May 31,May 31,
(Dollars in thousands)2025202420252024
Originations (1)$180,875 71,510 308,840 212,335 
Sold190,936 129,335 285,823 156,285 
Securitizations236 5 
(1)During both the three and six months ended May 31, 2025 and 2024, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.
Investments held-to-maturity
At May 31, 2025 and November 30, 2024, the Financial Services segment held commercial mortgage-backed securities (“CMBS”). These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the three or six months ended May 31, 2025 and May 31, 2024. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.
Details related to Financial Services' CMBS were as follows:
(Dollars in thousands)May 31, 2025November 30, 2024
Carrying value$134,280 135,646 
Outstanding debt, net of debt issuance costs124,343 126,164 
Incurred interest rate3.4%3.4%
May 31, 2025
Range
Discount rates at purchase6%—84%
Coupon rates2.0%—5.3%
Distribution datesOctober 2027—December 2028
Stated maturity datesOctober 2050—December 2051
Multifamily
The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.
The Multifamily segment (i) manages and owns interests in, funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties as income and fee generating assets, and (ii) manages and owns interests in, joint ventures that are engaged in the development of multifamily residential communities, in most instances with the intention of selling them when they are built and substantially occupied. The multifamily business is a vertically integrated platform with capabilities spanning development, construction, asset management, and capital markets. Revenues are generated from the sales of land, from construction activities, and from management and promote fees generated from funds and joint ventures less the cost of sales of land sold, expenses related to construction activities and general and administrative expenses. Operations of the Multifamily segment also include equity in earnings (losses) from unconsolidated entities and other gains (losses), which includes proceeds of sales of investments.
Lennar Other
Lennar Other includes strategic investments in technology companies, primarily managed by the Company's LENX subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management (“Rialto”) asset and investment management platform. Operations of the Lennar Other segment include operating earnings (loss) consisting of revenues generated primarily from the Company's share of carried interests in the Rialto fund investments, along with equity in earnings (losses) from the Rialto fund investments and technology investments, realized and unrealized gains (losses) from investments in equity securities and other income (expense), net from the remaining assets related to the Company's former Rialto segment.
The Company has/had investments in Blend Labs, Inc. (“Blend Labs”), Hippo Holdings, Inc. (“Hippo”), Opendoor Technologies, Inc. (“Opendoor”), SmartRent, Inc. (“SmartRent”), Sonder Holdings, Inc. (“Sonder”) and Sunnova Energy International, Inc. (“Sunnova”), which are held at market and the carrying value of which will therefore change depending on the value of the Company's shareholdings in those entities on the last day of each quarter. All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings. The following is a detail of Lennar Other realized and unrealized losses from sales of shares and mark-to-market adjustments on the Company's technology investments:
Three Months EndedSix Months Ended
May 31,May 31,
(In thousands)2025202420252024
Blend Labs (BLND)$— 715 (3,737)3,651 
Hippo (HIPO)(15,462)10,737 (28,352)27,186 
Opendoor (OPEN)(12,921)(16,907)(31,707)(15,592)
SmartRent (SMRT)— (4,609)(4,483)(6,572)
Sonder (SOND)— (40)(19)11 
Sunnova (NOVA)(1,057)(11,410)(23,645)(35,335)
Lennar Other realized and unrealized losses from technology investments (1)$(29,440)(21,514)(91,943)(26,651)
(1)During the six months ended May 31, 2025, the Company realized a loss of $28.4 million on the sale of its shares in Blend Labs, SmartRent, Sonder and Sunnova and, as of May 31, 2025, has a small remaining interest in Sunnova.