What changed in this filing

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Item 1. Financial Statements

2025-10-03 compared with 2025-07-01 · 219 added, 204 removed, 848 unchanged (33% of the section changed)

3 unchanged sentences

(Dollars in thousands)

May 31, November 30,

August 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 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 August 31, 2025, total assets include $ 2.1 billion related to consolidated VIEs of which $ 77.6 million is included in Homebuilding cash and cash equivalents, $ 2.0 million in Homebuilding receivables, net, $ 51.7 million in Homebuilding finished homes and construction in progress, $ 336.1 million in Homebuilding land and land under development, $ 1.5 billion in Homebuilding consolidated inventory not owned, $ 83.6 million in Homebuilding deposits and pre-acquisition costs on real estate, $ 0.1 million in Homebuilding investments in unconsolidated entities, $ 8.6 million in Homebuilding other assets and $ 25.3 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)

May 31, November 30,

August 31, November 30,

2025 (2) 2024 (2)

14 unchanged sentences

Class A common stock of $ 0.10 par value;

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

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

August 31, 2025 - 261,530,577 shares and November 30, 2024 - 259,979,453 shares

26,153 25,998

Class B common stock of $ 0.10 par value;

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

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

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

Additional paid-in capital 5,884,528 5,729,434

1 unchanged sentence

Treasury stock, at cost;

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

August 31, 2025 - 37,727,047 shares of Class A common stock and 5,384,202 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 $ 34,878,401 41,312,781

(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.

(2) As of August 31, 2025, total liabilities include $ 1.4 billion related to consolidated VIEs as to which there was no recourse against the Company, of which $ 39.0 million is included in Homebuilding accounts payable, $ 1.4 billion in Homebuilding liabilities related to consolidated inventory not owned, $ 6.0 million in Homebuilding senior notes and other debt payable, $ 1.3 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 Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

2025 2024 2025 2024

12 unchanged sentences

Total costs and expenses 8,110,664 8,129,984 22,795,426 22,088,702

Equity in earnings (losses) from unconsolidated entities 12,116 ( 4,309 ) 45,351 ( 34,854 )

Other income, net and other gains 30,759 68,172 62,426 133,544

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

Equity in earnings from unconsolidated entities 10,822 186,621 56,172 151,767

Other income (expense), net and other gains (losses), net ( 18,956 ) 23,331 43,471 156,875

Lennar Other realized and unrealized gains from technology investments 99,223 39,123 7,280 12,472

Earnings before income taxes 790,703 1,535,133 2,130,822 3,726,976

13 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

3 unchanged sentences

Amortization of discount/premium and accretion on debt, net ( 33 ) 407

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

Equity in earnings from unconsolidated entities ( 56,172 ) ( 151,767 )

Distributions of earnings from unconsolidated entities 28,266 34,108

2 unchanged sentences

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

Loans held-for-sale unrealized gains ( 10,293 ) ( 1,617 )

Lennar Other realized and unrealized losses (gains) from technology investments and other losses (gains), net 14,218 ( 35,189 )

Gains on sale of other assets and loans receivables ( 34,086 ) ( 15,428 )

2 unchanged sentences

Changes in assets and liabilities:

Decrease in receivables 69,599 30,956

Increase in receivables ( 10,286 ) ( 24,170 )

Increase in inventories, excluding valuation adjustments ( 1,314,933 ) ( 707,702 )

Increase in deposits and pre-acquisition costs on real estate ( 1,248,390 ) ( 984,843 )

(Increase) decrease in other assets ( 132,671 ) 11,393

Increase in other assets ( 209,892 ) ( 84,751 )

Decrease in loans held-for-sale 240,394 245,004

4 unchanged sentences

Proceeds from sale of other assets 54,803 31,435

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

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

Proceeds from sales of investments 86,862 —

1 unchanged sentence

Distributions of capital from unconsolidated entities 235,593 236,527

Proceeds from sale of loans receivables 114,661 —

Proceeds from sale of loan receivables 114,661 —

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

Decrease in Financial Services loans held-for-investment 9,466 2,960

Decrease (increase) in Financial Services loans held-for-investment 11,572 ( 2,479 )

Purchases of investment securities ( 3,456 ) ( 4,519 )

5 unchanged sentences

(In thousands)

Six Months Ended

Nine Months Ended

Cash flows from financing activities:

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

Net borrowings under revolving credit facility $ 1,140,000 —

Net repayments under warehouse facilities ( 67,111 ) ( 618,388 )

30 unchanged sentences

Net non-cash contributions to unconsolidated entities 162,454 14,453

Non-cash impacts of Millrose Properties, Inc.

Non-cash impact of Millrose Properties, Inc.

Inventories $ ( 5,578,704 ) —

14 unchanged sentences

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

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.

The condensed consolidated statements of operations for the three and nine months ended August 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 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 .

Homebuilding cash and cash equivalents as of August 31, 2025 and November 30, 2024 included $ 673.7 million and $ 265.6 million, respectively, of cash held in escrow for approximately two days .

Share-based Payments

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.

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

During the nine months ended August 31, 2025 and 2024, the Company granted employees 1.4 million and 1.3 million of nonvested shares of Class A common stock, respectively.

Recently Adopted Accounting Pronouncements

20 unchanged sentences

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

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.

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 split-off, a stock sale or another transaction.

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) May 31, 2025

(In thousands) At August 31, 2025

Homebuilding Financial

9 unchanged sentences

Investments available-for-sale (5) — — — 39,069 39,069

Loans held-for-investment, net — 52,489 — — 52,489

Investments held-to-maturity — 133,558 — — 133,558

6 unchanged sentences

Total liabilities $ 9,842,196 2,070,051 116,014 98,585 12,126,846

(In thousands) November 30, 2024

(In thousands) At November 30, 2024

Homebuilding Financial

18 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 May 31, 2025 and November 30, 2024, respectively.

(1) Financial Services, receivables, net, are primarily related to loans sold to investors for which the Company had not yet been paid as of August 31, 2025 and November 30, 2024, respectively.

(2) I nvestments in unconsolidated entities as of August 31, 2025 include the carrying value of 20 % of the total outstanding shares of Millrose common stock, which was $ 1.2 billion.

Lennar Corporation and Subsidiaries

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

(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 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 Six Months Ended

May 31, May 31,

(3) Loans held-for-sale related to unsold residential and commercial loans carried at fair value, of which $ 50.3 million of residential loans are carried at lower of cost or fair value.

(4) Investments in equity securities include investments of $ 118.3 million and $ 143.0 million without readily available fair values as of August 31, 2025 and November 30, 2024, respectively.

(6) As of August 31, 2025, the Financial Services segment transferred its loans held-for-investment of $ 61.0 million (fair value of $ 50.3 million) to held-for-sale, based on the Company’s intent to sell the loans in the near future.

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

29 unchanged sentences

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

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

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

East $ 5,724,354 6,967,571

6 unchanged sentences

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

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

5 unchanged sentences

$ 8,253,675 9,045,692 23,381,407 24,357,742

Operating earnings

Operating earnings (loss)

East $ 181,648 401,908 579,274 1,205,866

11 unchanged sentences

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

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:

At August 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:

June 2025 (1) $ 560,000 — 560,000

August 2025 325,000 325,000 650,000

September 2025 (1) $ 1,000,000 — 1,000,000

October 2025 100,000 100,000 200,000

March 2026 250,000 250,000 500,000

May 2026 250,000 450,000 700,000

July 2026 100,000 100,000 200,000

December 2026 — 375,000 375,000

5 unchanged sentences

Total $ 3,275,000

(1) Subsequent to May 31, 2025, the maturity date was extended to September 2025.

(1) Subsequent to August 31, 2025, the maturity date was extended to September 2026 .

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) May 31, 2025 November 30, 2024

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

Borrowings under residential facilities $ 1,682,918 1,776,045

9 unchanged sentences

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.

The provision for loan losses was immaterial for both the three and nine months ended August 31, 2025 and 2024.

Loan origination liabilities were $ 17.3 million and $ 16.7 million as of August 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 Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(Dollars in thousands) 2025 2024 2025 2024

2 unchanged sentences

Securitizations 2 4 8 9

(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.

(1) During both the three and nine months ended August 31, 2025 and 2024, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.

Investments held-to-maturity

At May 31, 2025 and November 30, 2024, the Financial Services segment held commercial mortgage-backed securities (“CMBS”).

At August 31, 2025 and November 30, 2024, the Financial Services segment held commercial mortgage-backed securities (“CMBS”).

These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred.

Based on the segment’s assessment, no impairment charges were recorded during the three or six months ended May 31, 2025 and May 31, 2024.

Based on the segment’s assessment, no impairment charges were recorded during the three or nine months ended August 31, 2025 and August 31, 2024.

The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.

Details related to Financial Services' CMBS were as follows:

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

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

Carrying value $ 133,558 135,646

1 unchanged sentence

Incurred interest rate 3.4 % 3.4 %

August 31, 2025

Discount rates at purchase 6 % — 84 %

20 unchanged sentences

All the investments are accounted for as investments in equity securities which are held at fair value and the changes in fair values are recognized through earnings.

The following is a detail of Lennar Other realized and unrealized losses from sales of shares and mark-to-market adjustments on the Company's technology investments:

Three Months Ended Six Months Ended

May 31, May 31,

The following is a detail of Lennar Other realized and unrealized gains from sales of shares and mark-to-market adjustments on the Company's technology investments:

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

5 unchanged sentences

Sunnova (NOVA) 124 36,371 ( 23,521 ) 1,036

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

(1) During the six months ended May 31, 2025, the Company realized a loss of $ 28.4 million on the sale of its shares in Blend Labs, SmartRent, Sonder and Sunnova and, as of May 31, 2025, has a small remaining interest in Sunnova.

Lennar Other realized and unrealized gains from technology investments (1) $ 99,223 39,123 7,280 12,472

(1) During the nine months ended August 31, 2025, the Company generated $ 44.7 million of cash and realized a loss of $ 25.9 million on the sale of its shares in Blend Labs, Hippo, SmartRent, Sonder and Sunnova .

(4) Investments in Unconsolidated Entities

1 unchanged sentence

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

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

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

Investments in unconsolidated entities (1) (2) $ 2,648,329 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 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.

As of August 31, 2025 and November 30, 2024, the carrying amount of the Company's investment was $ 559.3 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 August 31, 2025.

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

The Company uses the equity method of accounting for its 20 % investment in Millrose.

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 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 expects to dispose of the remaining 20 % through a split-off, a stock sale or another transaction.

As of August 31, 2025 and November 30, 2024, the Homebuilding segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 499.8 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 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.

As of both August 31, 2025 and November 30, 2024, the fair values of the repayment guarantees, maintenance guarantees, and completion guarantees were immaterial.

The Company believes that as of August 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).

3 unchanged sentences

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

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.

As of August 31, 2025 and November 30, 2024, the carrying amount of the Company's investment in Upward America was $ 14.6 million and $ 20.8 million, respectively.

Lennar Corporation and Subsidiaries

5 unchanged sentences

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.

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

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.

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

As of August 31, 2025 and November 30, 2024, the Multifamily segment's unconsolidated entities had non-recourse debt with completion guarantees of $ 757.5 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 ventures' 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 May 31, Six Months Ended May 31,

Three Months Ended August 31, Nine Months Ended August 31,

(In thousands) 2025 2024 2025 2024

5 unchanged sentences

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 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.

As of August 31, 2025, the Company has a $ 28.0 million investment in the CPPIB Fund.

During the nine months ended August 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.

As of August 31, 2025, the Company holds a $ 41.9 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:

August 31, 2025

(In thousands) LMV I LMV II

5 unchanged sentences

Lennar's remaining commitments (1) 3,635 9,508

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

Distributions to Lennar during the nine months ended August 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.

During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects of LMV I as the fund has come to the end of its contractual life.

During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of its 38 rental operation projects as the fund has come to the end of its contractual life.

During the year ended November 30, 2024, 33 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.

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

Lennar Corporation and Subsidiaries

2 unchanged sentences

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 $ 132.9 million and $ 140.1 million as of May 31, 2025 and November 30, 2024, respectively.

The Company's investment in the Rialto funds totaled $ 134.3 million and $ 140.1 million as of August 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.

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 $ 238.0 million and $ 239.3 million, as of August 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

Three Months Ended August 31, 2025

(In thousands) Total

3 unchanged sentences

Paid - in Capital Treasury

Stock Accumulated Other Comprehensive Income (Loss) Retained

Stock Accumulated Other Comprehensive Income 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

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

Net earnings (including net earnings attributable to noncontrolling interests) 599,811 — — — — — 590,967 8,844

9 unchanged sentences

( 1,812 ) — — — — — — ( 1,812 )

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

Non-cash purchase or activity of noncontrolling interests, net 16,448 — — — — — — 16,448

Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235

Three Months Ended August 31, 2024

(In thousands) Total

5 unchanged sentences

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

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

Net earnings (including net earnings attributable to noncontrolling interests) 1,187,274 — — — — — 1,162,674 24,600

11 unchanged sentences

Total other comprehensive income, net of tax 444 — — — — 444 — —

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

Balance at August 31, 2024 $ 27,557,708 25,998 3,660 5,706,711 ( 3,122,408 ) 7,040 24,791,519 145,188

Lennar Corporation and Subsidiaries

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

Six Months Ended May 31, 2025

Nine Months Ended August 31, 2025

(In thousands) Total

21 unchanged sentences

Non-cash purchase or activity of noncontrolling interests, net ( 11,411 ) — — ( 949 ) — — — ( 10,462 )

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

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

Balance at August 31, 2025 $ 22,751,555 26,153 3,660 5,884,528 ( 5,457,876 ) 6,019 22,107,836 181,235

Nine Months Ended August 31, 2024

(In thousands) Total

19 unchanged sentences

Total other comprehensive income, net of tax 2,161 — — — — 2,161 — —

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.

Balance at August 31, 2024 $ 27,557,708 25,998 3,660 5,706,711 ( 3,122,408 ) 7,040 24,791,519 145,188

On September 26, 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 October 27, 2025 to holders of record at the close of business on October 10, 2025.

On July 18, 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 July 3, 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.

Lennar Corporation and Subsidiaries

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

In January 2024, the Company's Board of Directors authorized an increase to its stock repurchase program to enable it to repurchase up to an additional $ 5 billion in value of its outstanding Class A or Class B common stock.

2 unchanged sentences

The repurchase authorization has no expiration date.

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.

At August 31, 2025, we have a remaining authorization to repurchase $ 1.7 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:

Lennar Corporation and Subsidiaries

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

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

Three Months Ended August 31, Nine Months Ended August 31,

2025 2024 2025 2024

5 unchanged sentences

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

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(Dollars in thousands) 2025 2024 2025 2024

1 unchanged sentence

Effective tax rate (1) 24.4 % 23.0 % 24.7 % 23.2 %

(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.

(1) For the three and nine months ended August 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 August 31, 2025 from the prior year was primarily due to a decrease in tax credits.

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

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted, introducing various changes to U.S.

federal tax law.

The Company does not expect the Act to have a material impact on its consolidated financial statements for the fiscal year ending November 30, 2025, and is currently evaluating the potential impact of the Act on future periods.

Lennar Corporation and Subsidiaries

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

(7) Earnings Per Share

5 unchanged sentences

Basic and diluted earnings per share were calculated as follows:

Three Months Ended Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

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

5 unchanged sentences

Basic and diluted earnings per share $ 2.29 4.26 6.06 10.26

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)

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

(8) Homebuilding Senior Notes and Other Debt Payable

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

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

Unsecured revolving credit facility $ 1,140,000 —

9 unchanged sentences

$ 3,523,766 2,258,283

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.

The carrying amounts of the senior notes in the table above are net of debt issuance costs of $ 7.5 million and $ 2.4 million as of August 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.

5 unchanged sentences

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.

In July 2025, the total commitment under the Delayed Draw Term Loan Facility was increased by $ 100 million, thereby increasing the borrowing available capacity to $ 1.7 billion.

Lennar Corporation and Subsidiaries

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

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.

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.

The term loan’s maturity date is three years from the initial effectiveness date of the credit agreement or May 2028, and at the Company’s discretion, it can be extended for an additional year until May 2029, 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.

As of August 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").

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

In the third quarter of 2025, the Company secured an additional $ 100 million in commitments.

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

(In thousands) At May 31, 2025

(In thousands) At August 31, 2025

Commitments - maturing in May 2027 $ 225,000

7 unchanged sentences

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

Lennar Corporation and Subsidiaries

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

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 2024 Form 10-K.

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

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

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

Performance letters of credit $ 1,889,234 1,668,061

5 unchanged sentences

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.

Lennar Corporation and Subsidiaries

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

(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 May 31, 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 August 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 May 31, 2025 At November 30, 2024

At August 31, 2025 At November 30, 2024

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

1 unchanged sentence

Loans held-for-investment, net (1) Level 3 $ — — 60,969 61,044

Loans held-for-sale (1) Level 3 50,284 50,284 — —

Investments held-to-maturity Level 3 133,558 133,413 135,646 138,160

1 unchanged sentence

Financial Services notes and other debt payable, net Level 2 1,863,845 1,864,336 1,930,956 1,931,515

(1) As of August 31, 2025, loans held-for-investment of $ 61.0 million (fair value of $ 50.3 million) were transferred to loans held-for-sale, based on the Company’s intent to sell the loans in the near future.

The following methods and assumptions are used by the Company in estimating fair values:

1 unchanged sentence

The fair values for instruments that do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information.

The fair value of residential loans held-for-sale for which there is no active market for similar mortgage loans is determined using an independent third-party valuation that uses a discounted cash flow model to estimate fair value and is categorized as Level 3.

The key assumptions used in the model, which are generally unobservable inputs, are mortgage prepayment rates, default rates, loss severity rates, and discount rates.

Loans held-for-sale are carried at the lower of cost or fair value.

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.

5 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) May 31, 2025 November 30, 2024

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

Financial Services Assets:

6 unchanged sentences

Investments available-for-sale Level 3 39,069 40,578

Lennar Corporation and Subsidiaries

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

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

At May 31, 2025 At November 30, 2024

At August 31, 2025 At November 30, 2024

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

6 unchanged sentences

The following methods and assumptions are used by the Company in estimating fair values.

Financial Services residential loans held-for-sale - Fair value is based on independent quoted market prices, where available, or the prices for other mortgage whole loans with similar characteristics.

Financial Services residential loans held-for-sale - The fair value of residential loans held-for-sale that trade in active secondary markets is determined based upon quoted market prices for similar mortgage loans, adjusted for credit risk and other loan characteristics, and is categorized as Level 2.

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 May 31, 2025 and November 30, 2024.

The fair value of these are included in Financial Services’ loans held-for-sale as of August 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.

7 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:

May 31, 2025 November 30, 2024

August 31, 2025 November 30, 2024

Unobservable inputs:

5 unchanged sentences

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

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).

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).

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.

1 unchanged sentence

The value of an assumed CMBS capital structure is calculated, generally, by discounting the cash flows associated with each CMBS class at market interest rates and at the Company’s own estimate of CMBS spreads.

Lennar Corporation and Subsidiaries

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

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 Six Months Ended

May 31, May 31,

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

5 unchanged sentences

Interest rate swaps ( 6,652 ) ( 1,621 ) ( 6,490 ) ( 1,665 )

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

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

Investments in equity securities $ 99,223 39,123 7,280 12,472

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 May 31,

Three Months Ended August 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 $ 3,290 77,787 3,366 150,867

Six Months Ended May 31,

Nine Months Ended August 31,

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

10 unchanged sentences

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

Three Months Ended May 31,

Lennar Corporation and Subsidiaries

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

Three Months Ended August 31,

(In thousands) Fair Value

3 unchanged sentences

Deposits and pre-acquisition costs on real estate (3) Level 3 8,919 — ( 8,919 ) 206 — ( 206 )

Financial Services - financial assets:

Loans held-for-sale (4) Level 3 $ 61,001 50,284 ( 10,717 ) — — —

Multifamily - non-financial assets:

Investments in unconsolidated entities (5) Level 3 $ — — — 139,980 49,970 ( 90,010 )

Six Months Ended May 31,

Nine Months Ended August 31,

(In thousands) Fair Value

4 unchanged sentences

Deposits and pre-acquisition costs on real estate (3) Level 3 17,847 — ( 17,847 ) 3,408 — ( 3,408 )

Financial Services - financial assets:

Loans held-for-sale (4) Level 3 $ 61,001 50,284 ( 10,717 ) — — —

Multifamily - non-financial assets:

1 unchanged sentence

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

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 and six months ended May 31, 2025.

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

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

Finished homes and construction in progress are included within inventories.

5 unchanged sentences

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

Lennar Corporation and Subsidiaries

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

Communities with valuation adjustments

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

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

(in thousands)

1 unchanged sentence

(in thousands)

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

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

August 31, 2025 1,664 113 21 $ 49,884 $ 25,633

August 31, 2024 1,283 24 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:

Six Months Ended May 31,

Nine Months Ended August 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 six months ended May 31, 2025 and 2024.

(1) Represents the projected average selling price on future deliveries for communities in which the Company recorded valuation adjustments during both the nine months ended August 31, 2025 and 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 below the carrying value in the Summary of Significant Accounting Policies in its 2024 Form 10-K.

1 unchanged sentence

This evaluation includes certain critical assumptions made by management:

(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 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.

During the three months ended August 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 no other-than-temporary impairment.

During the nine months ended August 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 $ 10.7 million, included in Multifamily other income (expense), net in the Company's condensed consolidated statements of operations and comprehensive income (loss).

During the three and nine months ended August 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 an immaterial amount of 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 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.

During the nine months ended August 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 nine months ended August 31, 2025.

During the nine months ended August 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.

5 unchanged sentences

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:

At May 31, 2025 At November 30, 2024

At August 31, 2025 At November 30, 2024

(In thousands) Investments in

8 unchanged sentences

$ 2,379,640 2,415,755 1,193,963 1,271,059

(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.

(1) As of August 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.

In addition, as of August 31, 2025 and November 30, 2024, there was recourse debt of VIEs of $ 31.4 million and $ 44.2 million, respectively.

As of August 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 August 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 August 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 August 31, 2025 and November 30, 2024, the Company's maximum 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 May 31, 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 August 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.

4 unchanged sentences

Except for the unconsolidated VIEs discussed above, the Company and the other partners did not guarantee any debt of the other unconsolidated VIEs.

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

2 unchanged sentences

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 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.

As of August 31, 2025, land under option with third parties that the Company was compelled to takedown was $ 1.5 billion, of which $ 497.4 million 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 $ 869.0 million as of May 31, 2025.

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 May 31, 2025.

During the nine months ended August 31, 2025, consolidated inventory not owned decreased by $ 1.8 billion with a $ 1.6 billion decrease to liabilities related to consolidated inventory not owned in the accompanying condensed consolidated balance sheet as of August 31, 2025.

The decrease was primarily due to the reassessment of certain option contracts terms that were amended.

This reassessment resulted in a decrease of $ 2.0 billion of consolidated inventory not owned with a corresponding

Lennar Corporation and Subsidiaries

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

decrease of $ 1.9 billion of liabilities related to consolidated inventory not owned.

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

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 May 31, 2025 At November 30, 2024

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

Non-refundable option deposits and pre-acquisition costs on real estate $ 5,922,329 3,529,889

1 unchanged sentence

Letters of credit in lieu of cash deposits under certain land and option contracts 436,489 341,834

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.

For the nine months ended August 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 August 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 August 31, 2025, the total deposits and pre-acquisition costs on real estate relating to contracts with the Land Banks were $ 2.2 billion, which are included in the corresponding line item presented in the table above.

As of August 31, 2025, total consolidated inventory not owned and liabilities related to consolidated inventory not owned for the option contracts with the Land Banks were $ 345.0 million and $ 298.2 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.

5 unchanged sentences

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

As of August 31, 2025, total deposits and pre-acquisition costs on real estate relating to option contracts with Millrose were $ 969.3 million.

(11) Commitments and Contingent Liabilities

2 unchanged sentences

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

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.

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.

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.

4 unchanged sentences

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

Three Months Ended Six Months Ended

May 31, May 31,

Lennar Corporation and Subsidiaries

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

Three Months Ended Nine Months Ended

August 31, August 31,

(In thousands) 2025 2024 2025 2024

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Warranty reserve, end of period $ 422,885 422,280 422,885 422,280

(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.

(1) The adjustments to pre-existing warranties from changes in estimates during the three and nine months ended August 31, 2025 and August 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.

4 unchanged sentences

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

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

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

Right-of-use assets $ 285,185 275,248

2 unchanged sentences

Weighted-average discount rate 5.0 % 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 May 31, 2025 were as follows:

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

(In thousands) Lease Payments

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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.

As of August 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:

Six Months Ended May 31,

Nine Months Ended August 31,

(In thousands) 2025 2024

3 unchanged sentences

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

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

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

Forward-Looking Statements

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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 and labor, including lumber, and labor;

supply shortages and increased costs related to construction materials, 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 that may impact the cost of raw materials and other goods related to our homebuilding business;

8 unchanged sentences

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;

the forfeiture of deposits related to land purchase options we decide not to exercise;

the forfeiture of deposits and pre-acquisition costs on real estate 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;

6 unchanged sentences

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