Financial Instruments and Fair Value Disclosures (Tables)

3 Months Ended

Feb. 28, 2026

Carrying Amounts And Estimated Fair Value Of Financial Instruments

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at February 28, 2026 and November 30, 2025, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash and cash equivalents, restricted cash, receivables, net and accounts payable, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments.


		At February 28, 2026			At November 30, 2025
(In thousands)	Fair Value Hierarchy	Carrying Amount		Fair Value	Carrying Amount	Fair Value
ASSETS
Financial Services:

Loans held-for-sale	Level 3	$	15,278	15,278	15,547	15,547
Investments held-to-maturity	Level 3	130,997		130,156	132,868	132,032



LIABILITIES
Homebuilding senior notes and other debts payable, net	Level 2	$	4,065,459	4,106,171	4,084,686	4,122,169
Financial Services notes and other debts payable, net	Level 2	1,191,006		1,191,448	1,790,309	1,790,789

Fair Value Measured On Recurring Basis

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:


	Fair Value Hierarchy	Fair Value at
(In thousands)		February 28, 2026		November 30, 2025
Financial Services Assets:
Residential loans held-for-sale	Level 2	$	1,756,684	2,170,677

LMF Commercial loans held-for-sale	Level 3	74,793		26,401



Mortgage servicing rights	Level 3	2,783		3,266
Forward options	Level 1	2,076		986
Lennar Other Assets:
Investments in equity securities	Level 1	$	108,012	232,372
Investments available-for-sale	Level 3	38,655		39,060

Residential and LMF Commercial loans held-for-sale in the table above include:


	At February 28, 2026		At November 30, 2025

(In thousands)	Aggregate Principal Balance		Change in Fair Value	Aggregate Principal Balance	Change in Fair Value





Residential loans held-for-sale	$	1,760,512	(3,828)	2,206,966	(36,289)
LMF Commercial loans held-for-sale	76,250		(1,457)	26,525	(124)

Schedule of Unobservable Inputs Used in Discounted Cash Flow Model to Determine the Fair Value of Communities


	At February 28, 2026
	Range
Discount rates at purchase	6%	—	84%
Coupon rates	2.0%	—	5.3%
Distribution dates	October 2027	—	December 2028
Stated maturity dates	October 2050	—	December 2051

The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and delinquency rates and are noted below:



	February 28, 2026	November 30, 2025
Unobservable inputs:
Mortgage prepayment rate	9%	9%
Discount rate	13%	13%
Delinquency rate	14%	11%

The table below summarizes the most significant unobservable inputs used in the Company's discounted cash flow model to determine the fair value of its communities for which the Company recorded valuation adjustments:


	Three Months Ended February 28,

	2026			2025
Unobservable inputs	Range			Range
Average selling price (1)	$166,000	—	310,000	215,000	—	571,000
Absorption rate per quarter (homes)	7	—	19	5	—	7
Discount rate	20%			20%

(1)Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the three months ended February 28, 2026 and 2025.

Schedule Of Gains And Losses Of Financial Instruments Measured on a Recurring Basis

The changes in fair values for Level 1 and Level 2 financial instruments measured on a recurring basis are shown below by financial instrument and financial statement line item:


	Three Months Ended
	February 28,
(In thousands)	2026		2025
Changes in fair value included in Financial Services revenues:
Loans held-for-sale	$	32,402	30,403
Mortgage loan commitments	7,210		33,504
Forward contracts	(12,983)		(48,463)

Interest rate swaps	(9,272)		(3,296)
Changes in fair value included in Lennar Other gains (losses) from technology investments:
Investments in equity securities	$	14,838	(62,503)

Changes in fair value included in other comprehensive loss, net of tax:
Lennar Other investments available-for-sale	$	(405)	(178)

Reconciliation Of Beginning And Ending Balance For The Company's Level 3 Recurring Fair Value Measurements

The following table sets forth the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements in the Company's Financial Services segment:


	Three Months Ended February 28,

	2026			2025
(In thousands)	Mortgage servicing rights		LMF Commercial loans held-for-sale		Mortgage servicing rights	LMF Commercial loans held-for-sale
Beginning balance	$	3,266	26,401		3,463	50,316
Purchases/loan originations	72		83,050		26	127,965

Sales/loan originations sold, including those not settled	—		(33,325)		—	(94,887)
Disposals/settlements	(51)		—		(97)	—
Changes in fair value (1)	(504)		(1,457)		(95)	(281)
Interest and principal paydowns	—		124		—	(319)
Ending balance	$	2,783	74,793		3,297	82,794

(1)Changes in fair value for LMF Commercial loans held-for-sale and Financial Services mortgage servicing rights are included in Financial Services' revenues.

Fair Value Measurements, Nonrecurring

The assets measured at fair value on a nonrecurring basis are summarized below:


		Three Months Ended February 28,

		2026				2025
(In thousands)	Fair Value Hierarchy	Carrying Value		Fair Value	Total Losses, Net (1)	Carrying Value	Fair Value	Total Losses, Net (1)



Homebuilding - non-financial assets:
Finished homes and construction in progress (2)	Level 3	$	404,294	371,507	(32,787)	259,540	239,197	(20,343)
Land and land under development (2)	Level 3	—		—	—	190	134	(56)
Deposits and pre-acquisition costs on real estate (3)	Level 3	5,341		—	(5,341)	268	—	(268)

Financial Services - financial assets:
Loans held-for-sale (4)	Level 3	$	15,317	15,169	(148)	—	—	—
Multifamily - non-financial assets:
Investments in unconsolidated entities (5)	Level 3	$	—	—	—	7,594	—	(7,594)

(1)Represents losses due to valuation adjustments and deposit and pre-acquisition write-offs recorded during the respective periods.

(2)Valuation adjustments for finished homes and construction in progress, and land and land under development were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(3)Forfeited deposits and write-off of pre-acquisition costs on real estate were included in Homebuilding costs and expenses in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(4)Changes in fair value below amortized cost basis are recognized through a valuation allowance, with the adjustment included in Financial Services earnings in the Company's condensed consolidated statements of operations and comprehensive income (loss).

(5)Valuation adjustments related to investments in unconsolidated entities were primarily included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

The table below summarizes communities reviewed for indicators of impairment and communities with valuation adjustments recorded:


			Communities with valuation adjustments
At or for the Three Months Ended	# of active communities	# of communities with potential indicator of impairment	# of communities	Fair Value (in thousands)		Valuation Adjustments (in thousands)

February 28, 2026	1,678	170	4	$	27,183	$	5,659
February 28, 2025	1,584	46	2	14,934		3,834

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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