What changed in this filing

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Item 1. Financial Statements

2025-07-01 compared with 2025-04-04 · 308 added, 213 removed, 744 unchanged (41% of the section changed)

3 unchanged sentences

(Dollars in thousands)

February 28, November 30,

May 31, November 30,

2025 (1) 2024 (1)

18 unchanged sentences

(1) Under certain provisions of Accounting Standards Codification (“ASC”) Topic 810, Consolidations (“ASC 810”), the Company is required to separately disclose on its condensed consolidated balance sheets the assets owned by consolidated variable interest entities (“VIEs”) and liabilities of consolidated VIEs as to which neither Lennar Corporation, nor any of its subsidiaries, has any obligations.

As of February 28, 2025, total assets include $ 3.0 billion related to consolidated VIEs of which $ 72.3 million is included in Homebuilding cash and cash equivalents, $ 4.4 million in Homebuilding receivables, net, $ 5.6 million in Homebuilding finished homes and construction in progress, $ 342.4 million in Homebuilding land and land under development, $ 2.5 billion in Homebuilding consolidated inventory not owned, $ 67.7 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 11.7 million in Homebuilding other assets and $ 35.5 million in Multifamily assets.

As of May 31, 2025, total assets include $ 2.3 billion related to consolidated VIEs of which $ 56.0 million is included in Homebuilding cash and cash equivalents, $ 3.1 million in Homebuilding receivables, net, $ 37.8 million in Homebuilding finished homes and construction in progress, $ 342.0 million in Homebuilding land and land under development, $ 1.8 billion in Homebuilding consolidated inventory not owned, $ 72.3 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 8.2 million in Homebuilding other assets and $ 35.1 million in Multifamily assets.

As of November 30, 2024, total assets include $ 3.7 billion related to consolidated VIEs of which $ 67.0 million is included in Homebuilding cash and cash equivalents, $ 6.0 million in Homebuilding receivables, net, $ 9.7 million in Homebuilding finished homes and construction in progress, $ 602.9 million in Homebuilding land and land under development, $ 2.8 billion in Homebuilding consolidated inventory not owned, $ 71.8 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.3 million in Homebuilding investments in unconsolidated entities, $ 42.3 million in Homebuilding other assets and $ 33.9 million in Multifamily assets.

3 unchanged sentences

(In thousands, except share amounts)

February 28, November 30,

May 31, November 30,

2025 (2) 2024 (2)

14 unchanged sentences

Class A common stock of $ 0.10 par value;

February 28, 2025 and November 30, 2024 - 400,000,000 shares;

February 28, 2025 - 261,330,901 shares and November 30, 2024 - 259,979,453 shares

May 31, 2025 and November 30, 2024 - 400,000,000 shares;

May 31, 2025 - 261,355,858 shares and November 30, 2024 - 259,979,453 shares

26,136 25,998

Class B common stock of $ 0.10 par value;

February 28, 2025 and November 30, 2024 - 90,000,000 shares;

February 28, 2025 - 36,601,215 shares and November 30, 2024 - 36,601,215 shares

May 31, 2025 and November 30, 2024 - 90,000,000 shares;

May 31, 2025 - 36,601,215 shares and November 30, 2024 - 36,601,215 shares

Additional paid-in capital 5,842,732 5,729,434

1 unchanged sentence

Treasury stock, at cost;

February 28, 2025 - 29,146,431 shares of Class A common stock and 4,991,506 shares of Class B common stock;

May 31, 2025 - 33,754,219 shares of Class A common stock and 5,196,021 shares of Class B common stock;

November 30, 2024 - 23,814,148 shares of Class A common stock and 4,532,701 shares of Class B common stock

5 unchanged sentences

Total liabilities and equity $ 34,374,546 41,312,781

(2) As of February 28, 2025, total liabilities include $ 2.4 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 67.8 million is included in Homebuilding accounts payable, $ 2.3 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debt payable, $ 0.8 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

(2) As of May 31, 2025, total liabilities include $ 1.7 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 31.0 million is included in Homebuilding accounts payable, $ 1.7 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debt payable, $ 0.8 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

As of November 30, 2024, total liabilities include $ 2.7 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 67.3 million is included in Homebuilding accounts payable, $ 2.6 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debts payable, net, $ 45.8 million in Homebuilding other liabilities, and $ 1.0 million in Multifamily liabilities.

3 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended

February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

2025 2024 2025 2024

Homebuilding $ 7,843,862 8,381,059 15,127,732 15,312,050

29 unchanged sentences

(In thousands)

Three Months Ended

February 28, 2025 February 29, 2024

Six Months Ended

Cash flows from operating activities:

3 unchanged sentences

Amortization of discount/premium and accretion on debt, net ( 142 ) 336

Equity in (earnings) loss from unconsolidated entities ( 33,234 ) 30,545

Equity in (earnings) losses from unconsolidated entities ( 45,351 ) 34,854

Distributions of earnings from unconsolidated entities 20,070 20,894

1 unchanged sentence

Deferred income tax expense 38,381 36,848

Loans held-for-sale unrealized (gains) losses ( 30,403 ) 46,052

Lennar Other realized losses and unrealized (gains) losses from technology investments and other (gains) losses 71,427 2,555

Gains on sale of other assets ( 23,411 ) ( 2,671 )

Gains on redemption/repurchase of senior notes — ( 825 )

Loans held-for-sale unrealized losses 2,350 28,865

Lennar Other realized and unrealized losses from technology investments and other losses, net 100,006 6,515

Gains on sale of other assets and loans receivables ( 34,597 ) ( 13,585 )

Gain on sale of investments in unconsolidated entities and other ( 35,033 ) —

Valuation adjustments and write-offs of option deposits and pre-acquisition costs on real estate, and other assets 89,727 26,526

6 unchanged sentences

Decrease in accounts payable and other liabilities ( 600,026 ) ( 380,966 )

Net cash provided by (used in) operating activities ( 289,042 ) 367,867

Net cash (used in) provided by operating activities ( 1,384,064 ) 609,626

Cash flows from investing activities:

Net additions of operating properties and equipment ( 71,259 ) ( 111,733 )

Proceeds from the sale of other assets 40,258 5,094

Proceeds from sale of investment in unconsolidated joint ventures 233,007 —

Proceeds from sale of other assets 50,696 18,709

Proceeds from sale of investments in unconsolidated joint ventures 233,007 —

Proceeds from sales of investments 72,003 —

1 unchanged sentence

Distributions of capital from unconsolidated entities 175,203 61,807

Proceeds from sale of loans receivables 114,661 —

Acquisition, net of cash and restricted cash acquired ( 254,492 ) —

7 unchanged sentences

(In thousands)

Three Months Ended

February 28, 2025 February 29, 2024

Six Months Ended

Cash flows from financing activities:

Net borrowings under revolving line of credit $ 400,000 —

Net repayments under warehouse facilities ( 514,818 ) ( 753,703 )

Proceeds from issuance of senior notes 700,000 —

Redemption/repurchases of senior notes ( 500,000 ) ( 553,865 )

Principal payments on notes payable and other borrowings ( 40,329 ) ( 40,672 )

Proceeds from other borrowings — 6,230

Net cash distributed in connection with Millrose Properties, Inc.

1 unchanged sentence

Proceeds from liabilities related to consolidated inventory not owned 259 105,635

Payments related to liabilities related to consolidated inventory not owned ( 255,862 ) ( 252,446 )

Proceeds from other borrowings — 6,231

Payments for liabilities related to consolidated inventory not owned ( 385,794 ) ( 250,232 )

Payments related to other liabilities, net ( 2,842 ) ( 2,842 )

1 unchanged sentence

Payments related to noncontrolling interests ( 5,965 ) ( 26,646 )

Debt issuance costs ( 4,417 ) —

Common stock:

31 unchanged sentences

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended November 30, 2024 ("2024 Form 10-K").

The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2024.

The basis of consolidation is unchanged from the disclosure in the Company's Notes to Consolidated Financial Statements section in its 2024 Form 10-K.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the accompanying condensed consolidated financial statements have been made.

The Company has historically experienced, and expects to continue to experience, variability in quarterly results.

The condensed consolidated statements of operations for the three months ended February 28, 2025 are not necessarily indicative of the results to be expected for the full year.

The condensed consolidated statements of operations for the three and six months ended May 31, 2025 are not necessarily indicative of the results to be expected for the full year.

Use of Estimates

2 unchanged sentences

Cash and Cash Equivalents

Homebuilding cash and cash equivalents as of February 28, 2025 and November 30, 2024 included $ 522.9 million and $ 265.6 million, respectively, of cash held in escrow for approximately two days .

Homebuilding cash and cash equivalents as of May 31, 2025 and November 30, 2024 included $ 518.0 million and $ 265.6 million, respectively, of cash held in escrow for approximately two days .

Share-based Payments

During the three months ended February 28, 2025 and February 29, 2024, the Company granted employees 1.4 million and 1.2 million of nonvested shares, respectively.

During both the three months ended May 31, 2025 and 2024, the Company granted employees an immaterial number of nonvested shares.

During the six months ended May 31, 2025 and 2024, the Company granted employees 1.4 million and 1.3 million of nonvested shares, respectively.

Recently Adopted Accounting Pronouncements

3 unchanged sentences

The Company is currently reviewing the impact that the adoption of ASU 2023-07 will have on its condensed consolidated financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):Improvements to Income Tax Disclosure ("ASU 2023-09").

ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate).

ASU 2023-09 will be effective for the Company's fiscal year ending November 30, 2026 and may be applied either retrospectively or prospectively.

The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on its condensed consolidated financial statements.

The Company is currently evaluating ASU 2023-09 and does not expect it to have a material effect on its condensed consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure s (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis.

ASU 2024-03 will be effective for the Company's fiscal year ending November 30, 2028.

The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its condensed consolidated financial statements.

The Company is currently evaluating the impact that the adoption of ASU 2024-03 will have on its condensed consolidated financial statements and disclosures.

Lennar Corporation and Subsidiaries

2 unchanged sentences

As a result of the Company's change in Homebuilding reportable segments following the acquisition of Rausch Coleman Homes ("Rausch") (refer to Note 2 of the Notes to Condensed Consolidated Financial Statements for more information), the Company reclassified certain prior year segment information in the condensed consolidated financial statements to conform with the 2025 presentation.

This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenue or net income in the condensed consolidated financial statements.

This reclassification was for operational purposes and between segments and had no impact on the Company's total assets, total equity, revenues or net earnings in the condensed consolidated financial statements.

In addition, certain amounts in the prior year's statement of cash flows were reclassified to conform with the 2025 presentation.

3 unchanged sentences

("Millrose") through a distribution of approximately 80 % of Millrose's stock to its stockholders.

The Company will temporarily retain, but will not vote, the remaining 20 % of the total outstanding shares of Millrose common stock, which it expects to dispose of through a subsequent spin-off, split-off, public offering, private sale or any combination of these potential transactions later in the year.

The Company temporarily retains, but does not vote, the remaining 20 % of the total outstanding shares of Millrose common stock, which it expects to dispose of through a subsequent spin-off, split-off, public offering, private sale or any combination of these potential transactions later in the year.

In connection with the spin-off, the Company contributed to Millrose $ 5.6 billion in land assets, representing approximately 87,000 homesites, and cash of $ 1.0 billion, which included $ 584.0 million of cash deposits related to option contracts.

19 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(In thousands) February 28, 2025

(In thousands) May 31, 2025

Homebuilding Financial

39 unchanged sentences

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 February 28, 2025 and November 30, 2024, respectively.

(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.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(2) I nvestments in unconsolidated entities as of February 28, 2025 include the carrying value of 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion.

(2) I nvestments 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 February 28, 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) on the condensed consolidated balance sheet.

(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 Ended

(In thousands) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(In thousands) 2025 2024 2025 2024

Homebuilding $ 7,843,862 8,381,059 15,127,732 15,312,050

28 unchanged sentences

The assets related to the Company’s Homebuilding segments were as follows:

(In thousands) February 28, 2025 November 30, 2024

(In thousands) May 31, 2025 November 30, 2024

East $ 5,720,593 6,967,571

6 unchanged sentences

Financial information relating to the Company’s Homebuilding segments was as follows:

Three Months Ended

(In thousands) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(In thousands) 2025 2024 2025 2024

East $ 1,707,226 2,138,410 3,360,981 4,016,347

18 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

At February 28, 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:

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

1 unchanged sentence

Residential facilities maturing:

April 2025 $ 250,000 250,000 500,000

June 2025 (1) $ 560,000 — 560,000

1 unchanged sentence

October 2025 50,000 100,000 150,000

May 2026 250,000 250,000 500,000

December 2026 375,000 — 375,000

5 unchanged sentences

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.

2 unchanged sentences

Borrowings and collateral under the facilities were as follows:

(In thousands) February 28, 2025 November 30, 2024

Borrowings under the residential facilities $ 1,235,008 1,776,045

Collateral under the residential facilities

1,286,848 1,837,833

Borrowings under the LMF Commercial facilities

37,465 28,747

(In thousands) May 31, 2025 November 30, 2024

Borrowings under residential facilities $ 1,211,428 1,776,045

Collateral under residential facilities 1,261,797 1,837,833

Borrowings under LMF Commercial facilities 80,368 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.

2 unchanged sentences

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.

Mortgage investors could seek to have the Company buy back mortgage loans or compensate them for losses incurred on mortgage loans that the Company has sold based on claims that the Company breached its limited representations or warranties.

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 industry and the uncertainty regarding the ultimate resolution of these claims, if either actual repurchases or the losses incurred resolving those repurchases exceed the Company’s expectations, additional recourse expense may be incurred.

There was no provision for loan losses for the three months ended February 28, 2025.

The provision for loan losses was immaterial for the three months ended February 29, 2024.

Loan origination liabilities were $ 16.7 million as of both February 28, 2025 and November 30, 2024, respectively, and included in Financial Services’ liabilities in the Company's condensed consolidated balance sheets.

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.

Lennar Corporation and Subsidiaries

2 unchanged sentences

LMF Commercial originated commercial loans as follows:

Three Months Ended

(Dollars in thousands) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(Dollars in thousands) 2025 2024 2025 2024

Originations (1) $ 180,875 71,510 308,840 212,335

1 unchanged sentence

Securitizations 2 3 6 5

(1) During both the three months ended February 28, 2025 and February 29, 2024, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.

(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 February 28, 2025 and November 30, 2024, the Financial Services segment held commercial mortgage-backed securities (“CMBS”).

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 months ended February 28, 2025 and February 29, 2024.

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) February 28, 2025 November 30, 2024

(Dollars in thousands) May 31, 2025 November 30, 2024

Carrying value $ 134,280 135,646

1 unchanged sentence

Incurred interest rate 3.4 % 3.4 %

February 28, 2025

Discount rates at purchase 6 % — 84 %

2 unchanged sentences

Stated maturity dates October 2050 — December 2051

The Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development, construction and property management of multifamily rental properties.

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.

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, property management, asset management, and capital markets.

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 primarily includes strategic investments in technology companies, primarily managed by the Company's LEN X subsidiary, and fund interests the Company retained when it sold the Rialto Capital Management ( “Rialto”) asset and investment management platform.

Lennar Other includes strategic investments in technology companies, primarily managed by the Company's LEN X 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.

10 unchanged sentences

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 Ended

(In thousands) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(In thousands) 2025 2024 2025 2024

Blend Labs (BLND) $ — 715 ( 3,737 ) 3,651

5 unchanged sentences

Lennar Other realized and unrealized losses from technology investments (1) $ ( 29,440 ) ( 21,514 ) ( 91,943 ) ( 26,651 )

(1) During the three months ended February 28, 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 February 28, 2025, has a small remaining interest in Sunnova.

(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.

(4) Investments in Unconsolidated Entities

1 unchanged sentence

The investments in the Company's Homebuilding unconsolidated entities were as follows:

(In thousands) February 28, 2025 November 30, 2024

(In thousands) At May 31, 2025 At November 30, 2024

Investments in unconsolidated entities (1) (2) $ 2,699,981 1,344,836

2 unchanged sentences

(2) Included in the Company's recorded investments in Homebuilding unconsolidated entities is the Company's 40 % ownership of FivePoint.

As of February 28, 2025 and November 30, 2024, the carrying amount of the Company's investment was $ 524.8 million and $ 470.8 million, respectively.

Additionally, included is the carrying value of approximately 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion as of February 28, 2025.

As of May 31, 2025 and November 30, 2024, the carrying amount of the Company's investment was $ 554.9 million and $ 470.8 million, respectively.

Additionally, included is the carrying value of approximately 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion as of May 31, 2025.

The Company has determined that Millrose is a VIE, but it is not the primary beneficiary.

1 unchanged sentence

The Company expects to dispose of the remaining 20 % in a subsequent spin-off, split-off, public offering, private sale or any combination of these potential transactions later in the year.

As of February 28, 2025 and November 30, 2024, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 421.8 million and $ 287.0 million, respectively.

As of May 31, 2025 and November 30, 2024, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 435.0 million and $ 287.0 million, respectively.

The Company has an immaterial amount of recourse exposure to debt of the Homebuilding unconsolidated entities in which it has investments.

1 unchanged sentence

In most instances, the amount of guaranteed debt of an unconsolidated entity is less than the value of the collateral securing it.

As of both February 28, 2025 and November 30, 2024, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were not material.

The Company believes that as of February 28, 2025, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under a guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture.

As of both May 31, 2025 and November 30, 2024, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were not material.

The Company believes that as of May 31, 2025, in the event it becomes legally obligated to perform under a guarantee of the obligation of a Homebuilding unconsolidated entity due to a triggering event under guarantee, the collateral would be sufficient to repay at least a significant portion of the obligation or the Company and its partners would contribute additional capital into the venture.

In certain instances, the Company has placed performance letters of credit and surety bonds with municipalities with regard to obligations of its joint ventures (see Note 8 of the Notes to Condensed Consolidated Financial Statements).

The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2024.

The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2024 Form 10-K.

The Upward America Venture LP (“Upward America”) is an investment fund that acquires new single-family homes in high growth markets across the United States and rents them to the people who will live in them.

1 unchanged sentence

The commitments are primarily from institutional investors, including $ 78.1 million committed by the Company.

As of February 28, 2025 and November 30, 2024, the carrying amount of the Company's investment in Upward America was $ 16.7 million and $ 20.8 million, respectively.

As of May 31, 2025 and November 30, 2024, the carrying amount of the Company's investment in Upward America was $ 19.5 million and $ 20.8 million, respectively.

Lennar Corporation and Subsidiaries

4 unchanged sentences

Those completion guarantees may require that the guarantors complete the construction of the improvements for which the financing was obtained.

Additionally, the Company guarantees the construction costs of the project as constructions cost over-runs would be paid by the Company.

Additionally, the Company guarantees the construction costs of the project as construction cost over-runs would be paid by the Company.

Generally, these payments would increase the Company's investment in the entities and would increase its share of funds the entities distribute after the achievement of certain threshold.

The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2024.

As of both February 28, 2025 and November 30, 2024, the fair value of the completion guarantees was immaterial.

As of February 28, 2025 and November 30, 2024, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 665.9 million and $ 907.8 million, respectively.

The decrease in the non-recourse debt with completion guarantees was due to completion of projects and sale of rental operation projects in Multifamily Venture Fund I.

The details related to these are unchanged from the disclosure in the Company's Notes to the Financial Statements section in its 2024 Form 10-K.

As of both May 31, 2025 and November 30, 2024, the fair value of the completion guarantees was immaterial.

As of May 31, 2025 and November 30, 2024, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 733.2 million and $ 907.8 million, respectively.

The decrease in the non-recourse debt with completion guarantees was due to completion of projects and sale of joint venture's rental operation projects and investments in various rental projects.

In many instances, the Multifamily segment is appointed as the construction, development and property manager for its Multifamily unconsolidated entities and receives fees for performing this function.

3 unchanged sentences

The details of the activity were as follows:

Three Months Ended

(In thousands) February 28, 2025 February 29, 2024

Three Months Ended May 31, Six Months Ended May 31,

(In thousands) 2025 2024 2025 2024

General contractor services, net of deferrals $ 28,264 84,434 58,714 186,070

2 unchanged sentences

Management fee income, net of deferrals 6,436 13,669 13,377 29,710

The Multifamily segment includes managing and investing in Multifamily Venture Fund I (“LMV I”), Multifamily Venture Fund II LP (“LMV II”) and Canada Pension Plan Investments Fund (the “CPPIB Fund”), which are long-term multifamily development investment vehicles involved in the development, construction and property management of class-A multifamily assets.

The Multifamily segment completed the closing of the CPPIB Fund.

The Multifamily segment includes managing and investing in Multifamily Venture Fund I LP (“LMV I”), Multifamily Venture Fund II LP (“LMV II”), Canada Pension Plan Investments Fund (the “CPPIB Fund”) and a new joint venture with an institutional investor (the “Institutional JV”), which are long-term multifamily development investment vehicles involved in the development and construction of class-A multifamily assets.

The Multifamily segment expects the CPPIB Fund to have almost $ 1.0 billion in equity and Lennar's ownership percentage in the CPPIB Fund is 4 %.

As of February 28, 2025, the Company has a $ 27.4 million investment in the CPPIB Fund.

As of May 31, 2025, the Company has a $ 27.8 million investment in the CPPIB Fund.

Additional dollars will be committed as opportunities are identified by the CPPIB Fund.

During the three and six months ended May 31, 2025, the Multifamily segment completed the closing of the Institutional JV.

The Multifamily segment expects the Institutional JV to acquire certain portfolio assets and invest additional capital to support pipeline opportunities.

The Company's ownership percentage in the Institutional JV is 10 %.

As of May 31, 2025, the Company has a $ 38.2 million investment in the Institutional JV.

Additional dollars will be committed as opportunities are identified by the CPPIB Fund and the Institutional JV.

Details of LMV I and LMV II are included below:

February 28, 2025

(In thousands) LMV I LMV II

5 unchanged sentences

Lennar's remaining commitments (1) 3,635 12,830

Distributions to Lennar 13,950 770

Distributions to Lennar during the six months ended May 31, 2025 19,690 770

(1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.

1 unchanged sentence

During the year ended November 30, 2024, 33 LMV I rental operation projects were sold to various third-party buyers.

As of February 28, 2025, two additional LMV I rental operation projects were sold to various third-party buyers.

During the six months ended May 31, 2025, two additional LMV I rental operation projects were sold to third-party buyers.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Lennar Other Unconsolidated Entities

Lennar Other's unconsolidated entities include fund investments the Company retained when it sold the Rialto assets and investment management platform in 2018, as well as strategic investments in technology companies and investment funds.

The Company's investment in the Rialto funds totaled $ 136.6 million and $ 140.1 million as of February 28, 2025 and November 30, 2024, respectively.

The Company's investment in the Rialto funds totaled $ 132.9 million and $ 140.1 million as of May 31, 2025 and November 30, 2024, respectively.

In addition, the Company is entitled to a portion of the carried interest distributions by those funds.

The Company also had strategic technology investments in unconsolidated entities and investment funds accounted for under the equity method of accounting with a carrying value of $ 235.1 million and $ 239.3 million, as of May 31, 2025 and November 30, 2024, respectively.

(5) Stockholders' Equity

The following tables reflect the changes in equity attributable to both Lennar Corporation and the noncontrolling interests of its consolidated subsidiaries in which it has less than a 100% ownership interest for the three and six months ended May 31, 2025 and 2024:

Three Months Ended May 31, 2025

(In thousands) Total

Equity Class A

Common Stock Class B

Common Stock Additional

Paid - in Capital Treasury

Stock Accumulated Other Comprehensive Income (Loss) Retained

Earnings Noncontrolling

Balance at February 28, 2025 $ 22,867,344 26,133 3,660 5,812,802 ( 4,424,039 ) 7,351 21,302,131 139,306

Net earnings (including net earnings attributable to noncontrolling interests) 481,820 — — — — — 477,449 4,371

Employee stock and directors plans

722 3 — 1,157 ( 438 ) — — —

Purchases of treasury stock ( 520,981 ) — — — ( 520,981 ) — — —

Amortization of restricted stock

28,773 — — 28,773 — — — —

Cash dividends ( 133,589 ) — — — — — ( 133,589 ) —

Receipts related to noncontrolling interests

9,701 — — — — — — 9,701

Payments related to noncontrolling interests

( 576 ) — — — — — — ( 576 )

Total other comprehensive loss, net of tax ( 1,332 ) — — — — ( 1,332 ) — —

Balance at May 31, 2025 $ 22,731,882 26,136 3,660 5,842,732 ( 4,945,458 ) 6,019 21,645,991 152,802

Three Months Ended May 31, 2024

(In thousands) Total

Equity Class A

Common Stock Class B

Common Stock Additional

Paid - in Capital Treasury

Stock Accumulated Other Comprehensive Income Retained

Earnings Noncontrolling

Balance at February 29, 2024 $ 26,777,930 25,983 3,660 5,651,836 ( 1,988,200 ) 5,241 22,949,315 130,095

Net earnings (including net earnings attributable to noncontrolling interests) 960,586 — — — — — 954,311 6,275

Employee stock and directors plans

( 1,046 ) 13 — 1,277 ( 2,336 ) — — —

Purchases of treasury stock ( 607,270 ) — — — ( 607,270 ) — — —

Amortization of restricted stock

34,506 — — 34,506 — — — —

Cash dividends ( 138,931 ) — — — — — ( 138,931 ) —

Receipts related to noncontrolling interests

8,926 — — — — — — 8,926

Payments related to noncontrolling interests

( 24,667 ) — — — — — — ( 24,667 )

Non-cash purchase or activity of noncontrolling interests, net 4,364 — — ( 12,886 ) — — — 17,250

Total other comprehensive income, net of tax 1,355 — — — — 1,355 — —

Balance at May 31, 2024 $ 27,015,753 25,996 3,660 5,674,733 ( 2,597,806 ) 6,596 23,764,695 137,879

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Company also had strategic technology investments in unconsolidated entities and investment funds accounted for under the equity method of accounting with a carrying value of $ 238.8 million and $ 239.3 million, as of February 28, 2025 and November 30, 2024, respectively.

(5) Stockholders' Equity

Three Months Ended February 28, 2025

Six Months Ended May 31, 2025

(In thousands) Total

9 unchanged sentences

( 63,671 ) 138 — 1,389 ( 65,198 ) — — —

Retirement of treasury stock — — — — — — — —

Purchases of treasury stock ( 1,230,696 ) — — — ( 1,230,696 ) — — —

9 unchanged sentences

Non-cash purchase or activity of noncontrolling interests, net ( 27,859 ) — — ( 949 ) — — — ( 26,910 )

Total other comprehensive loss, net of tax ( 178 ) — — — — ( 178 ) — —

Balance at February 28, 2025 $ 22,867,344 26,133 3,660 5,812,802 ( 4,424,039 ) 7,351 21,302,131 139,306

Three Months Ended February 29, 2024

Total other comprehensive income, net of tax ( 1,510 ) — — — — ( 1,510 ) — —

Balance at May 31, 2025 $ 22,731,882 26,136 3,660 5,842,732 ( 4,945,458 ) 6,019 21,645,991 152,802

Six Months Ended May 31, 2024

(In thousands) Total

19 unchanged sentences

Total other comprehensive income, net of tax 1,717 — — — — 1,717 — —

Balance at February 29, 2024 $ 26,777,930 25,983 3,660 5,651,836 ( 1,988,200 ) 5,241 22,949,315 130,095

On February 12, 2025, 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 day January 29, 2025.

Balance at May 31, 2024 $ 27,015,753 25,996 3,660 5,674,733 ( 2,597,806 ) 6,596 23,764,695 137,879

On June 19, 2025, the Company's Board of Directors declared a quarterly cash dividend of $ 0.50 per share on both its Class A and Class B common stock, payable on July 18, 2025 to holders of record at the close of business on July 3, 2025.

On May 7, 2025, 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 day April 23, 2025.

The Company approved and paid cash dividends of $ 0.50 per share for each of the four quarters of 2024 for both its Class A and Class B common stock.

3 unchanged sentences

The repurchase authorization has no expiration date.

At February 28, 2025, we have a remaining authorization to repurchase $ 2.7 billion in value of our Class A or B common stock.

At May 31, 2025, we have a remaining authorization to repurchase $ 2.2 billion in value of the Company's Class A or Class B common stock.

The following table sets forth the repurchases of the Company's Class A and Class B common stock under the authorized repurchase programs:

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Three Months Ended

February 28, 2025 February 29, 2024

(Dollars in thousands, except price per share amounts) Class A Class B Class A Class B

Three Months Ended May 31, Six Months Ended May 31,

2025 2024 2025 2024

(Dollars in thousands, except price per share amounts) Class A Class B Class A Class B Class A Class B Class A Class B

Shares repurchased 4,501,936 204,515 3,393,475 406,525 9,271,936 663,320 6,419,603 780,397

3 unchanged sentences

The provision for income taxes and effective tax rate were as follows:

Three Months Ended

(Dollars in thousands) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(Dollars in thousands) 2025 2024 2025 2024

Provision for income taxes $ 160,061 300,471 329,586 511,336

Effective tax rate (1) 25.1 % 23.9 % 24.8 % 23.4 %

(1) For the three months ended February 28, 2025 and February 29, 2024, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The increase in the effective tax rate from the prior year quarter was primarily due to a decrease in excess tax benefits from shared-based compensation and a decrease in solar tax credits.

(1) For the three and six months ended May 31, 2025 and 2024, the effective tax rate included state income tax expense and non-deductible executive compensation, partially offset by tax credits.

The increase in the effective tax rate for the three months ended May 31, 2025 from the prior year was primarily due to a decrease in solar tax credits.

The increase in the effective tax rate for the six months ended May 31, 2025 from the prior year was primarily due to a decrease in excess tax benefits from share-based compensation and a decrease in solar tax credits.

(7) Earnings Per Share

5 unchanged sentences

Basic and diluted earnings per share were calculated as follows:

Three Months Ended

(In thousands, except per share amounts) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(In thousands, except per share amounts) 2025 2024 2025 2024

Net earnings attributable to Lennar $ 477,449 954,311 996,975 1,673,645

4 unchanged sentences

Basic and diluted earnings per share $ 1.81 3.45 3.77 6.01

For both the three months ended February 28, 2025 and February 29, 2024, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.

For both the three and six months ended May 31, 2025 and 2024, there were no options to purchase shares of common stock that were outstanding and anti-dilutive.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(8) Homebuilding Senior Notes and Other Debt Payable

(Dollars in thousands) February 28, 2025 November 30, 2024

(Dollars in thousands) At May 31, 2025 At November 30, 2024

Unsecured revolving credit facility $ 400,000 —

5.25 % senior notes due 2026

5 unchanged sentences

5.20 % senior notes due 2030

698,411 698,266

4.75 % senior notes due 2025

Mortgage notes on land and other debt 247,894 307,440

$ 2,791,987 2,258,283

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 2.1 million and $ 2.4 million as of February 28, 2025 and November 30, 2024, respectively.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 8.0 million and $ 2.4 million as of May 31, 2025 and November 30, 2024, respectively.

In May 2025, the Company issued $ 700 million in aggregate principal amount of 5.20 % senior notes due 2030 (the "5.20% senior notes") at a price of 99.969 % of the principal amount.

Proceeds from the offering, after payment of expenses, totaled $ 695.6 million.

The 5.20 % Senior Notes are unsecured and unsubordinated, but are guaranteed by substantially all of the Company's 100% owned homebuilding subsidiaries.

Interest on the 5.20 % Senior Notes is due semi-annually beginning January 30, 2026.

The Company utilized the net proceeds from the sale of the 5.20 % senior notes primarily to pay off $ 500 million aggregate principal amount of its 4.75 % senior notes due May 2025.

The redemption price, which was paid in cash, was 100% of the principal amount outstanding.

In May 2025, the Company also entered into a new unsecured delayed draw term loan facility with an initial committed borrowing availability of approximately $ 1.6 billion (the “Delayed Draw Term Loan Facility”), which can be increased by an additional $ 500 million via an accordion feature.

The credit agreement governing the Company’s new unsecured Delayed Draw Term Loan Facility permits the Company to draw up to six times in the first 180 days after the effective date of the credit agreement or May 2028.

Once drawn, the Company may at any time prepay the loan, in whole or in part, without premium or penalty.

The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement, and at the Company’s discretion, it can be extended for an additional year, subject to the satisfaction of certain conditions.

Under the Delayed Draw Term Loan Facility, interest rates equal the adjusted term SOFR determined for the interest period plus the applicable margin.

As of May 31, 2025, there were no borrowings under the credit agreement governing the Delayed Draw Term Loan Facility.

In November 2024, the Company amended and restated the credit agreement governing its unsecured revolving credit facility (the "Credit Facility").

During the three months ended February 28, 2025, the Company received an additional $ 150 million in commitments.

In the first quarter of 2025, the Company received an additional $ 150 million in commitments.

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

(In thousands) At February 28, 2025

(In thousands) At May 31, 2025

Commitments - maturing in May 2027 $ 225,000

5 unchanged sentences

The credit agreement also provides that up to $ 477.5 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 the Company's Financial Condition and Capital Resources section in its Annual Report on Form 10-K for the year ended November 30, 2024.

The maturity, debt covenants and details of the Credit Facility are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2024 Form 10-K for the year ended November 30, 2024.

In addition to the Credit Facility, the Company has other letter of credit facilities with different financial institutions.

The Company's processes for posting performance and financial letters of credit and surety bonds are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Annual Report on Form 10-K for the year ended November 30, 2024.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The Company's outstanding letters of credit and surety bonds are disclosed below:

(In thousands) February 28, 2025 November 30, 2024

(In thousands) At May 31, 2025 At November 30, 2024

Performance letters of credit $ 1,843,332 1,668,061

4 unchanged sentences

The guarantees are full and unconditional.

The terms of guarantees are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its Annual Report on Form 10-K for the year ended November 30, 2024.

Other than as set forth in the Supplemental Financial Information, the terms of guarantees are unchanged from the disclosure in the Company's Financial Condition and Capital Resources section in its 2024 Form 10-K.

(9) Financial Instruments and Fair Value Disclosures

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at February 28, 2025 and November 30, 2024, using available market information and what the Company believes to be appropriate valuation methodologies.

The following table presents the carrying amounts and estimated fair values of financial instruments held or issued by the Company at May 31, 2025 and November 30, 2024, 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.

1 unchanged sentence

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, 2025 At November 30, 2024

At May 31, 2025 At November 30, 2024

(In thousands) Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value

8 unchanged sentences

For notes and other debt payable, the fair values approximate their carrying value due to variable interest pricing terms and the short-term nature of the majority of the borrowings.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Homebuilding - For senior notes and other debts payable, the fair value of fixed-rate borrowings is primarily based on quoted market prices and the fair value of variable-rate borrowings is based on expected future cash flows calculated using current market forward rates.

4 unchanged sentences

Fair value determined using significant unobservable inputs.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

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, 2025 November 30, 2024

(In thousands) May 31, 2025 November 30, 2024

Financial Services Assets:

7 unchanged sentences

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

February 28, 2025 November 30, 2024

At May 31, 2025 At November 30, 2024

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

8 unchanged sentences

The Company recognizes the fair value of its rights to service a mortgage loan as revenue upon entering into an interest rate lock loan commitment with a borrower.

The fair value of these are included in Financial Services’ loans held-for-sale as of February 28, 2025 and November 30, 2024.

The fair value of these are included in Financial Services’ loans held-for-sale as of May 31, 2025 and November 30, 2024.

Fair value of servicing rights is determined based on actual sales of servicing rights on loans with similar characteristics.

LMF Commercial loans held-for-sale - The fair value of commercial loans held-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality.

The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its Annual Report on Form 10-K for the year ended November 30, 2024.

The details and methods of the calculation are unchanged from the fair value disclosure in the Company's Notes to the Financial Statements section in its 2024 Form 10-K.

These methods use unobservable inputs in estimating a discount rate that is used to assign a value to each loan.

4 unchanged sentences

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:

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

February 28, 2025 November 30, 2024

May 31, 2025 November 30, 2024

Unobservable inputs:

3 unchanged sentences

Forward contracts, forward options and interest rate swaps - Fair value of forward contracts, forward options and interest rate swaps is based on independent quoted market prices for similar financial instruments.

The fair value of these are included in Financial Services' other assets and other liabilities and the Company recognizes the changes in the fair value of the premium paid as Financial Services' Revenue.

Lennar Other investments in equity securities - The fair value of investments in equity securities was calculated based on independent quoted market prices.

The Company’s investments in equity securities were recorded at fair value with all changes in fair value recorded to Lennar Other unrealized gains (losses) from technology investments on the Company’s condensed consolidated statements of operations and comprehensive income (loss).

The Company’s investments in equity securities were recorded at fair value with all

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

changes in fair value recorded to Lennar Other unrealized gains (losses) from technology investments on the Company’s condensed consolidated statements of operations and comprehensive income (loss).

Lennar Other investments available-for-sale - The fair value of investments available-for-sale is calculated from model-based techniques that use discounted cash flow assumptions and the Company’s own estimates of CMBS spreads, market interest rate movements and the underlying loan credit quality.

2 unchanged sentences

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

(In thousands) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(In thousands) 2025 2024 2025 2024

Changes in fair value included in Financial Services revenues:

4 unchanged sentences

Interest rate swaps 3,458 ( 1,598 ) 162 ( 44 )

Changes in fair value included in Lennar Other realized and unrealized gains (losses) from technology investments:

Changes in fair value included in Lennar Other realized and unrealized losses from technology investments:

Investments in equity securities $ ( 29,440 ) ( 21,514 ) ( 91,943 ) ( 26,651 )

2 unchanged sentences

Interest on Financial Services loans held-for-sale and LMF Commercial loans held-for-sale measured at fair value is calculated based on the interest rate of the loans and recorded as revenues in the Financial Services’ statement of operations.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

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, 2025 February 29, 2024

Three Months Ended May 31,

(In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale

6 unchanged sentences

Ending balance $ 3,467 72,203 3,652 66,715

Six Months Ended May 31,

(In thousands) Mortgage servicing rights LMF Commercial loans held-for-sale Mortgage servicing rights LMF Commercial loans held-for-sale

Beginning balance $ 3,463 50,316 3,440 13,459

Purchases/loan originations 277 308,840 232 212,335

Sales/loan originations sold, including those not settled — ( 285,823 ) — ( 156,285 )

Disposals/settlements ( 153 ) — ( 70 ) —

Changes in fair value (1) ( 120 ) ( 747 ) 50 ( 2,985 )

Interest and principal paydowns — ( 383 ) — 191

Ending balance $ 3,467 72,203 3,652 66,715

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

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs.

1 unchanged sentence

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

Three Months Ended

February 28, 2025 February 29, 2024

Three Months Ended May 31,

(In thousands) Fair Value

Hierarchy Carrying Value Fair Value Total Losses, Net (1) Carrying Value Fair Value Total Losses, Net (1)

Non-financial assets - Homebuilding:

Homebuilding - non-financial assets:

Finished homes and construction in progress (2) Level 3 $ 470,734 421,051 ( 49,683 ) 120,553 100,968 ( 19,585 )

Deposits and pre-acquisition costs on real estate (3) Level 3 8,661 — ( 8,661 ) 332 — ( 332 )

Multifamily - non-financial assets:

Investments in unconsolidated entities (4) Level 3 $ 3,122 — ( 3,122 ) — — —

Six Months Ended May 31,

(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 $ 742,658 672,632 ( 70,026 ) 192,309 168,985 ( 23,324 )

Land and land under development (2) Level 3 191 134 ( 57 ) — — —

Deposits and pre-acquisition costs on real estate (3) Level 3 8,928 — ( 8,928 ) 3,202 — ( 3,202 )

Non-financial assets - Multifamily:

Multifamily - non-financial assets:

Investments in unconsolidated entities (4) Level 3 $ 10,716 — ( 10,716 ) — — —

(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.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(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 financial statements.

(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) 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) for the three months ended February 28, 2025.

Finished homes and construction in progress are included within inventories.

Inventories are stated at cost unless the inventory within a community is determined to be impaired, in which case the impaired inventory is written down to fair value.

The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its Annual Report on Form 10-K for the year ended November 30, 2024.

The Company disclosed its accounting policy related to inventories and its review for indicators of impairment in the Summary of Significant Accounting Policies in its 2024 Form 10-K.

The Company estimates the fair value of inventory evaluated for impairment based on market conditions and assumptions made by management at the time the inventory is evaluated, which may differ materially from actual results if market conditions or assumptions change.

3 unchanged sentences

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

At or for the Six Months Ended # of active communities # of communities with potential indicator of impairment # of communities Fair Value

(in thousands)

1 unchanged sentence

(in thousands)

February 28, 2025 1,584 46 2 $ 14,934 $ 3,834

February 29, 2024 1,227 31 2 4,863 1,521

May 31, 2025 1,617 102 14 $ 35,482 $ 17,918

May 31, 2024 1,245 32 4 25,769 15,263

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, 2025 February 29, 2024

Six Months Ended May 31,

Unobservable inputs Range Range

2 unchanged sentences

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, 2025 and February 29, 2024.

The Company disclosed its accounting policy related to investments in unconsolidated entities and its review for indicators of impairment for the long-lived assets of an unconsolidated entity and the decline in the fair value of an investment

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

below the carrying value in the Summary of Significant Accounting Policies in its Annual Report on Form 10-K for the year ended November 30, 2024.

(1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the six months ended May 31, 2025 and 2024.

The Company evaluates if a decrease in the fair value of an investment below the carrying value is other-than-temporary.

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(1) projected future distributions from the unconsolidated entities, (2) discount rates applied to the future distributions, (3) the length of the time and the extent to which the market value has been less than cost and (4) various other factors, which include age of the venture, relationships with the other partners and banks, general economic market conditions, land status, length of the time and the extent to which the market value has been below the carrying value, and liquidity needs of the unconsolidated entity.

The Company generally estimates the fair value of an investment in an unconsolidated entity by using a cash flow analysis for estimated future net distributions from an unconsolidated entity, subject to the perceived risks associated with the unconsolidated entity’s cash flow streams.

During the three months ended February 28, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an other-than-temporary impairment of $ 7.6 million included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

During the three months ended February 29, 2024, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment.

The Company generally estimates the fair value of an investment in an unconsolidated entity by using a cash flow analysis for estimated future net distributions from the unconsolidated entity, subject to the perceived risks associated with the unconsolidated entity’s cash flow streams.

During the three and six months ended May 31, 2025, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had an other-than-temporary impairment of $ 3.1 million and $ 10.7 million, respectively, included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

During the three and six months ended May 31, 2024, the Company evaluated the fair value of its investments in unconsolidated entities using a cash flow analysis and concluded that the investments had no other-than-temporary impairment.

The Company estimates the fair value of investments in unconsolidated entities evaluated for impairment based on market conditions and assumptions made by management at the time the investment is evaluated, which may differ materially from actual results if market conditions or assumptions change.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

(10) Variable Interest Entities

During the three months ended February 28, 2025, the Company evaluated the joint venture (“JV”) agreements of its JVs that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements.

Based on the Company's evaluation, there were no variable interest entities (“VIEs”) that were consolidated during the three months ended February 28, 2025.

During the three months ended February 28, 2025, there was a deconsolidation of a VIE that had a total assets and liabilities of $ 315.8 million and $ 19.5 million, respectively.

During the six months ended May 31, 2025, the Company evaluated the joint venture (“JV”) agreements of its JVs that were formed or that had reconsideration events, such as changes in the governing documents or to debt arrangements.

Based on the Company's evaluation, there were no VIEs that were consolidated during the six months ended May 31, 2025.

During the six months ended May 31, 2025, there was a deconsolidation of a VIE that had total assets and liabilities of $ 315.8 million and $ 19.5 million, respectively.

The carrying amount of the Company's consolidated VIEs' assets and non-recourse liabilities are disclosed in the footnote to the condensed consolidated balance sheets.

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While the Company has option contracts to purchase land from certain of its VIEs, the Company is not required to purchase the assets and could walk away from the contracts, but that would require forfeiture of deposits and pre-acquisition costs.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Unconsolidated VIEs

The Company’s recorded investments in VIEs that are unconsolidated and related estimated maximum exposure to loss were as follows:

February 28, 2025 November 30, 2024

At May 31, 2025 At November 30, 2024

(In thousands) Investments in

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$ 2,465,595 2,530,670 1,193,963 1,271,059

(1) As of February 28, 2025 and November 30, 2024, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except with regard to the Company's remaining commitment to fund capital in Upward America of $ 20.2 million and $ 20.4 million, respectively.

In addition, as of both February 28, 2025 and November 30, 2024, there was recourse debt of VIEs of $ 44.2 million.

As of February 28, 2025, the increase in Homebuilding’s investment in VIEs was primarily due to the Company’s temporary 20 % investment in the total outstanding shares of Millrose common stock, which was $ 1.2 billion.

(2) As of February 28, 2025 and November 30, 2024, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs.

(3) As of both February 28, 2025 and November 30, 2024, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and related to the Financial Services' CMBS investments held-to-maturity investments.

(4) As of both February 28, 2025 and November 30, 2024, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.

(1) As of May 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of Homebuilding's investments in unconsolidated VIEs was limited to its investments in unconsolidated VIEs, except with regard to the Company's remaining commitment to fund capital in Upward America of $ 20.2 million and $ 20.4 million, respectively.

In addition, as of May 31, 2025 and November 30, 2024, there was recourse debt of VIEs of $ 33.9 million and $ 44.2 million, respectively.

As of May 31, 2025, the increase in Homebuilding’s investment in VIEs was primarily due to the Company’s temporary 20 % investment in the total outstanding shares of Millrose common stock, which was $ 1.2 billion.

(2) As of both May 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of Multifamily's investments in unconsolidated VIEs was primarily limited to its investments in the unconsolidated VIEs.

(3) As of both May 31, 2025 and November 30, 2024, the Company's maximum exposure to loss of the Financial Services segment was limited to its investment in the unconsolidated VIEs and primarily related to the Financial Services' CMBS investments held-to-maturity investments.

(4) As of both May 31, 2025 and November 30, 2024, the Company's maximum recourse exposure to loss of the Lennar Other segment was limited to its investments in the unconsolidated VIEs.

The Company and its JV partners generally fund JVs as needed and in accordance with business plans to allow the entities to finance their activities.

Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of February 28, 2025 in accordance with ASC 810 due to insufficient equity at risk.

Because such JVs are expected to make future capital calls in order to continue to finance their activities, the entities are determined to be VIEs as of May 31, 2025 in accordance with ASC 810 due to insufficient equity at risk.

While these entities are VIEs, the Company has determined that the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance is generally shared and the Company and its partners are not de-facto agents.

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While the Company has option contracts to purchase land from certain of its unconsolidated VIEs, the Company is not required to purchase the assets and could walk away from the contracts.

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Option Contracts

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Although the Company does not have legal title to the optioned land, if the Company is deemed to be the primary beneficiary and makes a significant deposit or pre-acquisition cost investment for optioned land, or is otherwise economically compelled to takedown the optioned land, it may need to consolidate the land under option at the purchase price of the optioned land.

As of February 28, 2025, land under option with third parties that the Company was compelled to takedown was $ 2.5 billion, of which $1.1 billion were land purchase contract obligations due to land banks upon maturity of the contracts.

As of May 31, 2025, land under option with third parties that the Company was compelled to takedown was $ 1.8 billion, of which $ 1.1 billion were land purchase contract obligations due to land banks upon maturity of the contracts.

The Company's intention is to have other land banks close on the land purchase commitments and the Company will option the land from the land banks.

Land under option with third parties is included in consolidated inventory not owned.

Consolidated inventory not owned related to land financing transactions, which are land sale transactions that did not meet the criteria for revenue recognition and derecognition of land by the Company as a result of the Company maintaining an option to repurchase the land in the future, was $ 994.0 million as of February 28, 2025.

During the three months ended February 28, 2025, consolidated inventory not owned decreased by $ 630.0 million with a corresponding decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of February 28, 2025.

The decrease was primarily due to homesite takedowns and reassessment of certain

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

option contracts.

During the six months ended May 31, 2025, consolidated inventory not owned decreased by $ 1.4 billion with a $ 1.2 billion decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of May 31, 2025.

The decrease was primarily due to the reassessment of certain option contracts due to the amendment of various contract terms.

This reassessment resulted in a decrease of $ 1.6 billion of consolidated inventories not owned with a corresponding decrease of $ 1.4 billion of liabilities related to consolidated inventories not owned.

The decrease was partially offset by the consolidation of homesites under option that the Company is economically compelled to takedown, which resulted in an increase of $ 668.9 million of consolidated inventories not owned with a corresponding increase of $ 612.7 million of liabilities related to consolidated inventories not owned.

To reflect the purchase price of the homesite takedowns, the Company had a net reclass related to option deposits from consolidated inventory not owned to finished homes and construction in progress in the accompanying condensed consolidated balance sheet as of February 28, 2025.

The liabilities related to consolidated inventory not owned primarily represent the difference between the option exercise prices for the optioned land and the Company’s cash deposits.

The Company's exposure to losses on its option contracts with third parties and unconsolidated entities was as follows:

(In thousands) At February 28, 2025 At November 30, 2024

Non-refundable option deposits and pre-acquisition costs $ 5,055,676 3,529,889

(In thousands) At May 31, 2025 At November 30, 2024

Non-refundable option deposits and pre-acquisition costs on real estate $ 5,172,351 3,529,889

Non-refundable option deposits included in consolidated inventory not owned 342,690 520,731

Letters of credit in lieu of cash deposits under certain land and option contracts 419,211 341,834

For the three months ended February 28, 2025, the Company purchased a significant portion of land from three land banks (the “Land Banks”).

There were no amounts due to the Land Banks as of February 28, 2025, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company.

As of February 28, 2025, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.2 billion.

As of February 28, 2025, total consolidated inventory not owned and liabilities related to consolidated inventory not owned relating to contracts with the Land Banks were $ 815.9 million and $ 633.4 million, respectively.

For the six months ended May 31, 2025, the Company purchased a significant portion of land from two land banks (the “Land Banks”).

There were no amounts due to the Land Banks as of May 31, 2025, resulting from land purchases as the full purchase price of the land is typically paid to the Land Banks at closing when land is purchased by the Company.

As of May 31, 2025, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.3 billion.

As of May 31, 2025, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 498.1 million and $ 409.3 million, respectively.

The Company believes there are other land banks that could be substituted should the Land Banks become unavailable or non-competitive with respect to land banking of future land.

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Subsequently, on February 10, 2025, Millrose acquired Rausch’s land assets (except for any homesites with homes under construction which were acquired by the Company) and Lennar paid Millrose an additional $ 90.4 million in option deposits.

As of February 28, 2025, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $680.3 million.

As of May 31, 2025, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $ 720.8 million.

(11) Commitments and Contingent Liabilities

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From time to time, the Company is also a party to various lawsuits involving purchases and sales of real property.

These lawsuits often include claims regarding representations and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties.

These lawsuits often include claims regarding representations

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

and warranties made in connection with the transfer of properties and disputes regarding the obligation to purchase or sell properties.

The Company does not believe that the ultimate resolution of these claims or lawsuits will have a material adverse effect on its business or financial position.

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The activity in the Company’s warranty reserve, which is included in Homebuilding other liabilities, was as follows:

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

Three Months Ended

(In thousands) February 28, 2025 February 29, 2024

Three Months Ended Six Months Ended

May 31, May 31,

(In thousands) 2025 2024 2025 2024

Warranty reserve, beginning of the period $ 428,926 405,558 446,240 414,796

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Warranty reserve, end of period $ 442,058 403,448 442,058 403,448

(1) The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2025 and February 29, 2024 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

(1) The adjustments to pre-existing warranties from changes in estimates during the three and six months ended May 31, 2025 and May 31, 2024 primarily related to specific claims in certain of the Company's homebuilding communities and other adjustments.

The Company has entered into agreements to lease certain office facilities and equipment under operating leases.

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The following table includes additional information about the Company's leases:

(Dollars in thousands) At February 2025 At November 30, 2024

(Dollars in thousands) At May 31, 2025 At November 30, 2024

Right-of-use assets $ 277,127 275,248

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Weighted-average discount rate 5.1 % 5.0 %

Lennar Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

The Company has entered into agreements to lease certain office facilities and equipment under operating leases.

Future minimum payments under the noncancellable leases in effect at February 28, 2025 were as follows:

Future minimum payments under the noncancellable leases in effect at May 31, 2025 were as follows:

(In thousands) Lease Payments

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(2) The Company's leases do not include a readily determinable implicit rate.

As such, the Company has estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date or as of December 1, 2019, which was the effective date of ASU 2016-02.

As of February 28, 2025, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.

As such, the Company estimated the discount rate for these leases to determine the present value of lease payments at the lease commencement date.

As of May 31, 2025, the Company recognized the lease liabilities on its condensed consolidated balance sheets within accounts payable and other liabilities of the respective segments.

The Company's rental expense on lease liabilities were as follows:

Three Months Ended

(In thousands) February 28, 2025 February 29, 2024

Six Months Ended May 31,

(In thousands) 2025 2024

Rental expense $ 102,628 54,684

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On occasion, the Company may sublease other rented space which is no longer used for the Company's operations.

For both the three months ended February 28, 2025 and February 29, 2024, the Company had an immaterial amount of sublease income.

For both the six months ended May 31, 2025 and 2024, the Company had an immaterial amount of sublease income.

Forward-Looking Statements

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supply shortages and increased costs related to construction materials and labor, including lumber, and labor;

changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties;

changes in U.S and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business and operations;

changes in trade policy affecting our business, including new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties that may impact the cost of raw materials and other goods related to our homebuilding business;

changes in U.S.

and foreign governmental laws, regulations and policies, including retaliatory policies against the United States, that may impact our business and operations;

cost increases related to real estate taxes and insurance;

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our inability to successfully execute our strategies, including our land light strategy;

any potential subsequent transactions we may enter into following our spin-off of Millrose Properties, Inc.;

any potential subsequent transactions we may enter into following our spin-off of Millrose Properties, Inc.("Millrose") involving the Millrose stock we still hold;

a decline in the value of the land and home inventories we maintain and resulting possible future write downs of the carrying value of our real estate assets;

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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;

labor shortages due to increased enforcement of restrictions on immigration;

possible unfavorable outcomes results in legal proceedings;

and conditions in the capital, credit and financial markets;

changes in laws, regulations or the regulatory environment affecting our business.

Please see our Annual Report on Form 10-K for the fiscal year ended November 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on January 23, 2025 and our other filings with the SEC for a further discussion of these and other risks and uncertainties which could affect our future results.

labor shortages and/or a decrease in the number of potential homebuyers due to increased enforcement of restrictions on immigration;

possible unfavorable outcomes and/or results in legal proceedings;

conditions in the capital, credit and financial markets;

and changes in laws, regulations or the regulatory environment affecting our business.

Please see our Annual Report on Form 10-K for the fiscal year ended November 30, 2024 ("2024 Form 10-K"), filed with the Securities and Exchange Commission (the “SEC”) on January 23, 2025 and our other filings with the SEC for a further discussion of these and other risks and uncertainties which could affect our future results.

We undertake no obligation, other than those imposed by securities laws, to publicly revise any forward-looking statements to reflect events or circumstances after the date of those statements or to reflect the occurrence of anticipated or unanticipated events.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements