Press Releases

Lennar Reports Third Quarter 2023 Results
  • Net earnings per diluted share of $3.87
    • $3.91, excluding mark-to-market losses on technology investments
  • Net earnings of $1.1 billion
  • Deliveries increased 8% to 18,559 homes
  • New orders increased 37% to 19,666 homes; new orders dollar value increased 30% to $8.6 billion
  • Backlog of 21,321 homes with a dollar value of $9.9 billion
  • Total revenues of $8.7 billion
  • Homebuilding operating earnings of $1.5 billion
    • Gross margin on home sales of 24.4%
    • S,G&A expenses as a % of revenues from home sales of 7.0%
    • Net margin on home sales of 17.4%
  • Financial Services operating earnings of $148 million
  • Multifamily operating loss of $9 million
  • Lennar Other operating loss of $26 million
  • Homebuilding cash and cash equivalents of $3.9 billion
  • Years supply of owned homesites of 1.5 years and controlled homesites of 73%
  • No outstanding borrowings under the Company's $2.6 billion revolving credit facility
  • Homebuilding debt to total capital of 11.5%
  • Redeemed $425 million of 5.875% homebuilding senior notes due November 2024
  • Repurchased $50 million aggregate principal amount of senior notes due in fiscal year 2024
  • Repurchased 3 million shares of Lennar common stock for $366 million

MIAMI, Sept. 14, 2023 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, today reported results for its third quarter ended August 31, 2023. Third quarter net earnings attributable to Lennar in 2023 were $1.1 billion, or $3.87 per diluted share, compared to third quarter net earnings attributable to Lennar in 2022 of $1.5 billion, or $5.03 per diluted share. Excluding mark-to-market losses on technology investments in both years and one-time items in the prior year, third quarter net earnings attributable to Lennar in 2023 were $1.1 billion or $3.91 per diluted share, compared to third quarter net earnings attributable to Lennar in 2022 of $1.5 billion or $5.18 per diluted share.

Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar, said, "Market conditions remained constructive for new homebuilders during our third quarter, as the Fed continued to use tighter money supply and higher interest rates as tools to battle inflation, while enabling continued economic growth. At the same time, short housing supply, absorbed by strong primary and pent-up demand, continued to define a strong sales environment. Homebuilders continued to use incentives, including buy-downs, to offset rising interest rates and tighter capital, which limit affordability. Our solid third quarter performance reflects strong strategic focus, and even as the month of August saw another uptick in interest rates, we were able to continue to drive sales pace."

Mr. Miller continued, "Against this backdrop, our third quarter earnings were $1.1 billion, or $3.87 per diluted share, compared to $1.5 billion, or $5.03 per diluted share last year. Our average sales price per home delivered was $448,000 in the third quarter, compared to almost $500,000 last year, and our home deliveries were 18,559, up 8%, and our new orders were 19,666, up 37%, year over year. Our homebuilding gross margin in the third quarter was 24.4%, reflecting cost reductions, and with homebuilding S,G&A expenses of 7.0%, led to a 17.4% net margin."

"While our operating performance remained strong, we continued to strengthen and fortify our balance sheet and our future. During the quarter, we repaid $475 million of debt and repurchased $366 million of our common stock ending the quarter with homebuilding debt to total capital of 11.5%, the lowest in our history, no borrowings on our $2.6 billion revolver and cash of $3.9 billion. With cash on hand exceeding our debt, and with overall liquidity of $6.5 billion, our balance sheet has never been in a stronger position."

Jon Jaffe, Co-Chief Executive Officer and President of Lennar, said, "During the quarter, we continued the execution of our land light strategy. This was evidenced by our years supply of owned homesites improving to 1.5 years from 2.2 years and our controlled homesite percentage increasing to 73% from 69% year over year.

Operationally, our cycle time during the quarter was down 32 days sequentially as the improving supply chain and labor market positively impacted our production times. Concurrently, the Lennar Machine continued to drive sales pace in concert with production. Accordingly, quarterly starts and sales pace were 4.9 homes and 5.2 homes per community, respectively, and we ended the third quarter with approximately 1,400 completed, unsold homes, about one home per community."

Mr. Miller concluded, "As the Fed continues to focus on its goal of reducing inflation, we have remained vigilant and focused on our operating strategies. As we look ahead to our fourth quarter, we expect to deliver between 21,500 to 22,500 homes with a gross margin between 24.4% to 24.6%. We will continue to fortify our balance sheet with significant liquidity and operate from a position of strength, repurchasing stock and reducing debt, thus enabling us to continue to execute on our core strategies and outperform in periods of growth as well as uncertainty."

RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2023 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2022

Homebuilding

Revenues from home sales decreased 2% in the third quarter of 2023 to $8.3 billion from $8.4 billion in the third quarter of 2022. Revenues were lower primarily due to a 9% decrease in average sales price of home deliveries, partially offset by an 8% increase in the number of home deliveries. New home deliveries increased to 18,559 homes in the third quarter of 2023 from 17,248 homes in the third quarter of 2022. The average sales price of homes delivered was $448,000 in the third quarter of 2023, compared to $491,000 in the third quarter of 2022. The decrease in average sales price of homes delivered in the third quarter of 2023 compared to the same period last year was primarily due to pricing to market and product mix.

Gross margins on home sales were $2.0 billion, or 24.4%, in the third quarter of 2023, compared to $2.5 billion, or 29.2%, in the third quarter of 2022. During the third quarter of 2023, gross margins decreased because revenues per square foot decreased year over year as the Company priced homes to market, which was partially offset by a decrease in costs per square foot due to lower material costs. In addition, land costs increased year over year.

Selling, general and administrative expenses were $583 million in the third quarter of 2023, compared to $486 million in the third quarter of 2022. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.0% in the third quarter of 2023, from 5.8% in the third quarter of 2022, primarily due to an increase in the use of brokers due to current market conditions.

Financial Services

Operating earnings for the Financial Services segment were $148 million in the third quarter of 2023, compared to $63 million in the third quarter of 2022. In 2022, the operating earnings included a $36 million one-time charge due to an increase in a litigation accrual related to a court judgment. Excluding this one-time charge, operating earnings were $99 million in the third quarter of 2022. The increase in operating earnings in 2023 was primarily due to a higher profit per locked loan in the Company's mortgage business as a result of higher margins, and higher lock volume because of an increased capture rate. There was also an increase in profitability in the Company's title business primarily due to benefits of the Company's technology efforts.

Other Ancillary Businesses

Operating loss for the Multifamily segment was $9 million in the third quarter of 2023, compared to operating earnings of $46 million in the third quarter of 2022. Operating loss for the Lennar Other segment was $26 million in the third quarter of 2023, compared to operating loss of $118 million in the third quarter of 2022.

RESULTS OF OPERATIONS 
NINE MONTHS ENDED AUGUST 31, 2023 COMPARED TO
NINE MONTHS ENDED AUGUST 31, 2022

Homebuilding

Revenues from home sales were $22.0 billion and $22.1 billion in the nine months ended August 31, 2023 and 2022, respectively. Revenues were flat primarily because of a 6% increase in the number of home deliveries, which was offset by a 6% decrease in average sales price of home deliveries. New home deliveries increased to 49,292 homes in the nine months ended August 31, 2023 from 46,335 homes in the nine months ended August 31, 2022. The average sales price of homes delivered was $448,000 in the nine months ended August 31, 2023, compared to $479,000 in the nine months ended August 31, 2022. The decrease in average sales price of homes delivered in the nine months ended August 31, 2023 compared to the same period last year was primarily due to pricing to market and product mix.

Gross margins on home sales were $5.0 billion, or 22.9%, in the nine months ended August 31, 2023, compared to $6.4 billion, or 28.7%, in the nine months ended August 31, 2022. During the nine months ended August 31, 2023, gross margins decreased because revenues per square foot decreased year over year as the Company priced homes to market and costs per square foot increased primarily due to higher material and labor costs. In addition, land costs increased year over year.

Selling, general and administrative expenses were $1.5 billion in the nine months ended August 31, 2023, compared to $1.4 billion in the nine months ended August 31, 2022. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.0% in the nine months ended August 31, 2023, from 6.3% in the nine months ended August 31, 2022, primarily due to an increase in the use of brokers due to current market conditions.

Financial Services

Operating earnings for the Financial Services segment were $339 million in the nine months ended August 31, 2023, compared to $257 million in the nine months ended August 31, 2022. In 2022, operating earnings included a $36 million one-time charge due to an increase in a litigation accrual related to a court judgment. Excluding this one-time charge, operating earnings were $293 million in the third quarter of 2022. The increase in operating earnings in 2023 was primarily due to a higher profit per locked loan in the Company's mortgage business as a result of higher margins, and higher lock volume because of an increased capture rate. There was also an increase in profitability in the Company's title business primarily due to benefits of the Company's technology efforts.

Other Ancillary Businesses

Operating loss for the Multifamily segment was $38 million in the nine months ended August 31, 2023, compared to operating earnings of $52 million in the nine months ended August 31, 2022. Operating loss for the Lennar Other segment was $86 million in the nine months ended August 31, 2023, compared to operating loss of $630 million in the nine months ended August 31, 2022.

Tax Rate

For the nine months ended August 31, 2023 and 2022, the Company had tax provisions of $824 million and $951 million, respectively, which resulted in overall effective income tax rates of 24.2% and 22.4%, respectively. In the nine months ended August 31, 2023, the Company's overall effective income tax rate was higher than last year, primarily due to the resolution of an uncertain state tax position and the retroactive reinstatement of the new energy efficient home credit, both during the third quarter of 2022.

Debt Transactions

In August 2023, the Company redeemed $425 million aggregate principal amount of its 5.875% senior notes due November 2024 at an early redemption price of 100% of the principal amount outstanding.

During the three months ended August 31, 2023, the Company repurchased $50 million aggregate principal amount of senior notes due in fiscal 2024. During the nine months ended August 31, 2023, the Company repurchased $208 million aggregate principal amount of senior notes due in fiscal 2024.

Share Repurchases

During the third quarter of 2023, the Company repurchased 3 million shares of its common stock for $366 million at an average share price of $121.96. During the nine months ended August 31, 2023, the Company repurchased 7 million shares of its common stock for $763 million at an average share price of $108.98.

Liquidity

At August 31, 2023, the Company had $3.9 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.6 billion revolving credit facility, thereby providing approximately $6.5 billion of available capacity.

Guidance

The following are the Company's expected results of its homebuilding and financial services activities for the fourth quarter of 2023:

New Orders

16,200 - 17,200

Deliveries

21,500 - 22,500

Average Sales Price

Consistent with Q3 2023

Gross Margin % on Home Sales

24.4% - 24.6%

S,G&A as a % of Home Sales

6.7% - 6.9%

Financial Services Operating Earnings

$130 million - $135 million

About Lennar

Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.

Note Regarding Forward-Looking Statements: Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the homebuilding market and other markets in which we participate. You can identify forward-looking statements by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those anticipated by the forward-looking statements. We wish to caution readers not to place undue reliance on any forward-looking statements, which are expressly qualified in their entirety by this cautionary statement and speak only as of the date made. Important factors that could cause differences between anticipated and actual results include slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities; decreased demand for our homes, or for Multifamily rental apartments or single family homes; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials, including lumber, and labor; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects; reductions in the market value of our investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies and our planned spin-off of certain businesses; a decline in the value of the land and home inventories we maintain and resulting possible future writedowns of the carrying value of our real estate assets; the forfeiture of deposits related to land purchase options we decide not to exercise; the effects of public health issues such as a major epidemic or pandemic that could have a negative impact on the economy and on our businesses; possible unfavorable results in legal proceedings; conditions in the capital, credit and financial markets; changes in laws, regulations or the regulatory environment affecting our business, and the other risks and uncertainties described in our filings from time to time with the Securities and Exchange Commission, including those included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K and Quarterly reports on Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

A conference call to discuss the Company's third quarter earnings will be held at 11:00 a.m. Eastern Time on Friday, September 15, 2023. The call will be broadcast live on the Internet and can be accessed through the Company's website at investors.lennar.com. If you are unable to participate in the conference call, the call will be archived at investors.lennar.com for 90 days. A replay of the conference call will also be available later that day by calling 203-369-3809 and entering 5723593 as the confirmation number.

 

LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)



Three Months Ended


Nine Months Ended


August 31,


August 31,


2023


2022


2023


2022

Revenues:








Homebuilding

$      8,318,615


8,479,496


22,144,937


22,209,683

Financial Services

266,206


202,078


672,166


578,945

Multifamily

137,394


243,056


432,661


686,436

Lennar Other

7,388


9,801


15,419


21,579

Total revenues

$      8,729,603


8,934,431


23,265,183


23,496,643









Homebuilding operating earnings

$      1,493,820


1,963,224


3,615,068


4,953,485

Financial Services operating earnings

148,995


63,348


340,331


258,074

Multifamily operating earnings (loss)

(8,733)


48,487


(38,496)


54,582

Lennar Other operating loss

(26,218)


(117,980)


(84,374)


(629,538)

Corporate general and administrative expenses

(114,144)


(115,557)


(365,002)


(334,425)

Charitable foundation contribution

(18,559)


(17,248)


(49,292)


(46,335)

Earnings before income taxes

1,475,161


1,824,274


3,418,235


4,255,843

Provision for income taxes

(358,209)


(351,580)


(824,233)


(951,276)

Net earnings (including net earnings attributable to
noncontrolling interests)

1,116,952


1,472,694


2,594,002


3,304,567

Less: Net earnings attributable to noncontrolling interests

7,956


5,350


16,778


12,886

Net earnings attributable to Lennar

$      1,108,996


1,467,344


2,577,224


3,291,681









Average shares outstanding:








Basic

282,854


288,109


284,612


290,645

Diluted

282,854


288,109


284,612


290,645









Earnings per share:








Basic

$                3.87


5.04


8.94


11.19

Diluted

$                3.87


5.03


8.94


11.18









Supplemental information:








Interest incurred (1)

$           46,924


59,137


146,206


180,869









EBIT (2):








Net earnings attributable to Lennar

$      1,108,996


1,467,344


2,577,224


3,291,681

Provision for income taxes

358,209


351,580


824,233


951,276

Interest expense included in:








Costs of homes sold

60,415


74,358


171,012


212,125

Costs of land sold

386


155


1,433


358

Homebuilding other income (expense), net

3,576


4,655


10,908


15,229

Total interest expense

64,377


79,168


183,353


227,712

EBIT

$      1,531,582


1,898,092


3,584,810


4,470,669



(1)

Amount represents interest incurred related to homebuilding debt.

(2)

EBIT is a non-GAAP financial measure defined as earnings before interest and taxes. This financial measure has been presented because the Company finds it important and useful in evaluating its performance and believes that it helps readers of the Company's financial statements compare its operations with those of its competitors. Although management finds EBIT to be an important measure in conducting and evaluating the Company's operations, this measure has limitations as an analytical tool as it is not reflective of the actual profitability generated by the Company during the period. Management compensates for the limitations of using EBIT by using this non-GAAP measure only to supplement the Company's GAAP results. Due to the limitations discussed, EBIT should not be viewed in isolation, as it is not a substitute for GAAP measures.

 

LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)



Three Months Ended


Nine Months Ended


August 31,


August 31,


2023


2022


2023


2022

Homebuilding revenues:








Sales of homes

$ 8,285,873


8,439,125


22,016,279


22,124,565

Sales of land

20,430


32,397


46,462


63,888

Other homebuilding

12,312


7,974


82,196


21,230

 Total homebuilding revenues

8,318,615


8,479,496


22,144,937


22,209,683









Homebuilding costs and expenses:








Costs of homes sold

6,261,578


5,973,889


16,980,746


15,769,536

Costs of land sold

18,720


34,994


52,729


71,365

Selling, general and administrative

582,765


485,854


1,543,259


1,400,887

 Total homebuilding costs and expenses

6,863,063


6,494,737


18,576,734


17,241,788

Homebuilding net margins

1,455,552


1,984,759


3,568,203


4,967,895

Homebuilding equity in loss from unconsolidated entities

(4,016)


(14,652)


(13,109)


(10,076)

Homebuilding other income (expense), net

42,284


(6,883)


59,974


(4,334)

Homebuilding operating earnings

$ 1,493,820


1,963,224


3,615,068


4,953,485









Financial Services revenues

$     266,206


202,078


672,166


578,945

Financial Services costs and expenses

117,211


138,730


331,835


320,871

Financial Services operating earnings

$     148,995


63,348


340,331


258,074









Multifamily revenues

$     137,394


243,056


432,661


686,436

Multifamily costs and expenses

139,759


215,433


443,069


654,322

Multifamily equity in earnings (loss) from unconsolidated entities and
     other income, net

(6,368)


20,864


(28,088)


22,468

Multifamily operating earnings (loss)

$       (8,733)


48,487


(38,496)


54,582









Lennar Other revenues

$         7,388


9,801


15,419


21,579

Lennar Other costs and expenses

6,155


10,007


19,426


23,650

Lennar Other equity in loss from unconsolidated entities, other
     expense, net, and other gain (loss)

(11,738)


(31,935)


(66,197)


(68,493)

Lennar Other unrealized losses from technology investments (1)

(15,713)


(85,839)


(14,170)


(558,974)

Lennar Other operating loss

$     (26,218)


(117,980)


(84,374)


(629,538)


(1)  The following is a detail of Lennar Other unrealized losses from mark-to-market adjustments on technology investments:




Three Months Ended


Nine Months Ended



August 31,


August 31,



2023


2022


2023


2022

Blend Labs (BLND)


$               386


(518)


(360)


(21,510)

Hippo (HIPO)


(17,166)


(32,933)


(14,933)


(195,336)

Opendoor (OPEN)


23,638


(54,391)


38,459


(218,751)

SmartRent (SMRT)


(1,707)


(23,118)


8,219


(71,431)

Sonder (SOND)


(91)


(168)


(549)


(2,300)

Sunnova (NOVA)


(20,773)


25,289


(45,006)


(49,646)



$        (15,713)


(85,839)


(14,170)


(558,974)

 

LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries, New Orders and Backlog
(Dollars in thousands, except average sales price)
(unaudited)


Lennar's reportable homebuilding segments and all other homebuilding operations not required
to be reported separately have divisions located in:


East: Alabama, Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington
Other: Urban divisions



For the Three Months Ended August 31,


2023


2022


2023


2022


2023


2022

Deliveries:

Homes


Dollar Value


Average Sales Price

East

5,605


5,647


$  2,430,072


2,538,479


$     434,000


450,000

Central

3,807


3,501


1,598,527


1,566,610


420,000


447,000

Texas

4,102


3,447


1,174,859


1,138,901


286,000


330,000

West

5,036


4,649


3,108,783


3,208,713


617,000


690,000

Other

9


4


6,258


3,655


695,000


914,000

Total

18,559


17,248


$  8,318,499


8,456,358


$     448,000


491,000


Of the total homes delivered listed above, 66 homes with a dollar value of $33 million and an average sales price of $494,000 represent home deliveries from unconsolidated entities for the three months ended August 31, 2023, compared to 46 home deliveries with a dollar value of $17 million and an average sales price of $375,000 for the three months ended August 31, 2022.

 


At August 31,


For the Three Months Ended August 31,


2023


2022


2023


2022


2023


2022


2023


2022

New Orders:

Active Communities


Homes


Dollar Value


Average Sales Price

East

362


328


5,779


5,675


$  2,398,206


2,514,776


$     415,000


443,000

Central

277


296


4,003


3,033


1,669,911


1,348,226


417,000


445,000

Texas

235


217


4,730


2,577


1,302,268


776,156


275,000


301,000

West

375


345


5,140


3,077


3,261,380


2,015,897


635,000


655,000

Other

4


3


14


4


7,877


2,668


563,000


667,000

Total

1,253


1,189


19,666


14,366


$  8,639,642


6,657,723


$     439,000


463,000


Of the total homes listed above, 82 homes with a dollar value of $42 million and an average sales price of $512,000 represent homes in six active communities from unconsolidated entities for the three months ended August 31, 2023, compared to 79 homes with a dollar value of $39 million and an average sales price of $499,000 in seven active communities for the three months ended August 31, 2022.

 


For the Nine Months Ended August 31,


2023


2022


2023


2022


2023


2022

Deliveries:

Homes


Dollar Value


Average Sales Price

East

15,272


14,927


$  6,669,141


6,436,576


$     437,000


431,000

Central

9,327


8,966


4,022,372


3,956,302


431,000


441,000

Texas

11,431


9,272


3,329,349


3,038,064


291,000


328,000

West

13,243


13,151


8,075,810


8,718,178


610,000


663,000

Other

19


19


14,824


17,816


780,000


938,000

Total

49,292


46,335


$  22,111,496


22,166,936


$     448,000


479,000


Of the total homes delivered listed above, 201 homes with a dollar value of $95 million and an average sales price of $474,000 represent home deliveries from unconsolidated entities for the nine months ended August 31, 2023, compared to 115 home deliveries with a dollar value of $42 million and an average sales price of $368,000 for the nine months ended August 31, 2022.

 


For the Nine Months Ended August 31,


2023


2022


2023


2022


2023


2022

New Orders:

Homes


Dollar Value


Average Sales Price

East

15,540


16,558


$   6,606,656


7,401,602


$     425,000


447,000

Central

9,926


9,721


4,179,439


4,413,718


421,000


454,000

Texas

11,604


8,718


3,261,481


2,887,204


281,000


331,000

West

14,650


12,889


9,159,865


8,834,508


625,000


685,000

Other

25


19


17,106


16,499


684,000


868,000

Total

51,745


47,905


$23,224,547


23,553,531


$     449,000


492,000


Of the total new orders listed above, 252 homes with a dollar value of $117 million and an average sales price of $465,000 represent new orders from unconsolidated entities for the nine months ended August 31, 2023, compared to 183 new orders with a dollar value of $88 million and an average sales price of $478,000 for the nine months ended August 31, 2022.

 


At August 31,


2023


2022


2023


2022


2023


2022

Backlog:

Homes


Dollar Value


Average Sales Price

East

8,973


9,903


$  3,757,839


4,538,997


$     419,000


458,000

Central

4,624


5,912


2,012,497


2,791,899


435,000


472,000

Texas

2,870


3,712


769,216


1,302,409


268,000


351,000

West

4,847


6,203


3,310,533


4,251,491


683,000


685,000

Other

7


4


3,446


2,626


492,000


656,000

Total

21,321


25,734


$  9,853,531


12,887,422


$     462,000


501,000


Of the total homes in backlog listed above, 217 homes with a backlog dollar value of $100 million and an average sales price of $460,000 represent the backlog from unconsolidated entities at August 31, 2023, compared to 147 homes with a backlog dollar value of $74 million and an average sales price of $502,000 at August 31, 2022.

 

LENNAR CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(unaudited)



August 31,


November 30,


2023


2022

ASSETS




Homebuilding:




Cash and cash equivalents

$                     3,887,809


4,616,124

Restricted cash

16,201


23,046

Receivables, net

843,750


673,980

Inventories:




  Finished homes and construction in progress

12,368,338


11,718,507

  Land and land under development

6,993,835


7,382,273

  Consolidated inventory not owned

2,687,343


2,331,231

Total inventories

22,049,516


21,432,011

Investments in unconsolidated entities

1,157,021


1,173,164

Goodwill

3,442,359


3,442,359

Other assets

1,578,692


1,323,478


32,975,348


32,684,162

Financial Services

2,334,594


3,254,257

Multifamily

1,354,587


1,257,337

Lennar Other

773,596


788,539

Total assets

$                   37,438,125


37,984,295









LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$                     1,721,530


1,616,128

Liabilities related to consolidated inventory not owned

2,300,686


1,967,551

Senior notes and other debts payable, net

3,320,119


4,047,294

Other liabilities

2,600,807


3,347,673


9,943,142


10,978,646

Financial Services

1,333,485


2,353,904

Multifamily

290,266


313,484

Lennar Other

82,690


97,894

Total liabilities

11,649,583


13,743,928

Stockholders' equity:




Preferred stock


Class A common stock of $0.10 par value

25,844


25,608

Class B common stock of $0.10 par value

3,660


3,660

Additional paid-in capital

5,561,793


5,417,796

Retained earnings

21,113,282


18,861,417

Treasury stock

(1,052,000)


(210,389)

Accumulated other comprehensive income

4,040


2,408

Total stockholders' equity

25,656,619


24,100,500

Noncontrolling interests

131,923


139,867

Total equity

25,788,542


24,240,367

Total liabilities and equity

$                   37,438,125


37,984,295

 

LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)



August 31,


November 30,


August 31,


2023


2022


2022

Homebuilding debt

$     3,320,119


4,047,294


4,057,496

Stockholders' equity

25,656,619


24,100,500


22,977,278

Total capital

$   28,976,738


28,147,794


27,034,774

Homebuilding debt to total capital

11.5 %


14.4 %


15.0 %







Homebuilding debt

$     3,320,119


4,047,294


4,057,496

Less: Homebuilding cash and cash equivalents

3,887,809


4,616,124


1,309,364

Net homebuilding debt

$       (567,690)


(568,830)


2,748,132

Net homebuilding debt to total capital (1)

(2.3) %


(2.4) %


10.7 %



(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). The Company believes 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 the Company's GAAP results.

Contact:
Ian Frazer
Investor Relations
Lennar Corporation
(305) 485-4129

SOURCE Lennar Corporation

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Lennar Corporation
Danielle.Tocco@lennar.com
949-789-1633