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What changed in Lennar's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Lennar's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+361 added−306 removedSource: 10-K (2025-01-23) vs 10-K (2024-01-26)

Top changes in Lennar's 2024 10-K

361 paragraphs added · 306 removed · 250 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

50 edited+26 added−2 removed85 unchanged
Biggest changeOur Next Gen ® home provides what can be a home within a home to accommodate children or parents or can be an office from which to work remotely. • Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides strategic oversight for our homebuilding operations. • Digital Marketing - We are increasingly advertising homes through digital channels, which is significantly increasing the cost effectiveness of our marketing efforts. • Dynamic pricing model - We match up unsold production as homes progress toward completion, with pricing information from our dynamic pricing model on a community-by-community and home-by-home basis. • Technology Focused - We partner with and/or invest in technology companies that are looking to improve the homebuilding and financial services industries to increase efficiencies, reduce customer acquisition costs and create a better customer experience. • Land light strategy - We are focused on reducing our years' supply of owned homesites and increasing the percentage of land we control through options or agreements, including agreements with strategic land banks and joint ventures, rather than ownership. • Even flow production - We are focused on maintaining consistent starts and sales paces in order to generate increased market share in all the markets we build in.
Biggest changeThe Core Plans are driving cost savings and strong operating margins, while delivering great value for our homebuyers. • Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides strategic oversight for our homebuilding operations. • Digital Marketing - We are increasingly advertising homes through digital channels, which is significantly increasing the cost effectiveness of our marketing efforts. • Dynamic pricing model - We match up unsold production as homes progress toward completion, with pricing information from our dynamic pricing model on a community-by-community and home-by-home basis. • Technology Focused - We partner with and/or invest in technology companies that are looking to improve the homebuilding and financial services industries to increase efficiencies, reduce customer acquisition costs and create a better customer experience. • Land light strategy - We are focused on reducing our years' supply of owned homesites and increasing the percentage of land we control through options or agreements, including agreements with strategic land banks and joint ventures, rather than ownership.
Financial Services Operations Residential Mortgage Financing We offer conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other home mortgage products primarily to buyers of our homes through our financial services subsidiary, Lennar Mortgage, from locations in most of the states in which we have homebuilding operations.
Financial Services Operations Residential Mortgage Financing We offer conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other residential mortgage products primarily to buyers of our homes through our financial services subsidiary, Lennar Mortgage, from locations in most of the states in which we have homebuilding operations.
As of November 30, 2023, our reportable Homebuilding segments and all Other Homebuilding operations not required to be reported separately have divisions located in: East: Alabama, Florida, New Jersey, Pennsylvania and South Carolina Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, Tennessee and Virginia Texas: Texas West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") Our other reportable segments are Financial Services, Multifamily and Lennar Other.
As of November 30, 2024, our reportable Homebuilding segments and all Other Homebuilding operations not required to be reported separately have divisions located in: East: Alabama, Florida, New Jersey and Pennsylvania Central: Georgia, Illinois, Indiana, Maryland, Minnesota, North Carolina, South Carolina, Tennessee and Virginia Texas: Texas West: Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah and Washington Other: Urban divisions and other homebuilding related investments primarily in California, including FivePoint Holdings, LLC ("FivePoint") Our other reportable segments are Financial Services, Multifamily and Lennar Other.
Our Board of Directors and its Audit Committee regularly review the results of OSHA visits and other safety-related information to ensure that we are successfully managing and improving our safety program.
Our Board and its Audit Committee regularly review the results of OSHA visits and other safety-related information to ensure that we are successfully managing and improving our safety program.
Lennar Other Strategic Technology Investments We strategically invest in companies involved in technology initiatives that, among other things, help us enhance the homebuying or home ownership experience, reduce our SG&A expenses and help us stay at the forefront of homebuilding innovation. Seven of the companies in which we have strategic investments are publicly traded. They are: • Blend Labs, Inc.
Lennar Other Strategic Technology Investments We strategically invest in companies involved in technology initiatives that, among other things, help us enhance the homebuying or home ownership experience, reduce our SG&A expenses and help us stay at the forefront of homebuilding innovation. Six of the companies in which we have strategic investments are publicly traded. They are: • Blend Labs, Inc.
Regulation The residential communities and multifamily apartment developments that we build are subject to a large variety of local, state and federal statutes, ordinances, rules and regulations relating to, among other things, zoning, construction permits 7 Table of Contents or entitlements, construction materials, density, building design and property elevation, building codes and handling of waste.
Regulation The residential communities and multifamily apartment developments that we build are subject to a large variety of local, state and federal statutes, ordinances, rules and regulations relating to, among other things, zoning, construction permits 8 Table of Contents or entitlements, construction materials, density, building design and property elevation, building codes and handling of waste.
We expect that a significant portion of all homes currently in backlog will be delivered in fiscal year 2024. Homebuilding Investments in Unconsolidated Entities We create and participate in joint ventures that acquire and develop land for our homebuilding operations, for sale to third parties or for use in the ventures' own homebuilding operations.
We expect that a significant portion of all homes currently in backlog will be delivered in fiscal year 2025. Homebuilding Investments in Unconsolidated Entities We create and participate in joint ventures that acquire and develop land for our homebuilding operations, for sale to third parties or for use in the ventures' own homebuilding operations.
In addition, we are working towards moving to a more even flow production where we start, sell and deliver a similar number of homes each quarter. 6 Table of Contents Competition The residential homebuilding industry is highly competitive.
In addition, we are working towards moving to a more even flow production where we start, sell and deliver a similar number of homes each quarter. 7 Table of Contents Competition The residential homebuilding industry is highly competitive.
Initially all the homes purchased by Upward America were purchased from Lennar, but subsequently, Upward America began purchasing homes from multiple homebuilders. At both November 30, 2023 and 2022, approximately 6% of the homes owned by Upward America were built by homebuilders other than Lennar.
Initially all the homes purchased by Upward America were purchased from Lennar, but subsequently, Upward America began purchasing homes from multiple homebuilders. At both November 30, 2024 and 2023, approximately 6% of the homes owned by Upward America were built by homebuilders other than Lennar.
Single-Family Home Rentals In December 2020, Lennar formed the Upward America Venture, LLC (“Upward America”), which (a) acquires communities of single-family rental properties (including townhomes, duplexes and condominium buildings developed or acquired for rental purposes), and (b) leases and manages homes in those communities. Lennar subsidiaries are the manager and the general partner of Upward America.
Single-Family Home Rentals In December 2020, Lennar formed the Upward America Venture, LLC (“Upward America”), which (a) acquires communities of single-family rental properties (including townhomes, duplexes and condominium buildings developed or 6 Table of Contents acquired for rental purposes), and (b) leases and manages homes in those communities. Lennar subsidiaries are the manager and the general partner of Upward America.
Although we subcontract virtually all segments of construction to others and our contracts call for the subcontractors to repair or replace any deficient items related to their trades, we are primarily responsible to the homebuyers for the correction of any deficiencies. 3 Table of Contents Local Operating Structure and Centralized Management We balance a local operating structure with centralized corporate level management.
Although we subcontract virtually all segments of construction to others and our contracts call for the subcontractors to repair or replace any deficient items related to their trades, we are primarily responsible to the homebuyers for the correction of any deficiencies. Local Operating Structure and Centralized Management We balance a local operating structure with centralized corporate level management.
The quality of our homes is substantially affected by the efforts of on-site management and others engaged in the construction process, by the materials we use in particular homes, and by other similar factors. We warrant our new homes against defective materials and workmanship for a minimum period of one year after the date of closing.
The quality of our homes is substantially affected by the efforts of on-site management and others engaged in the construction process, by the materials we use in particular homes, and by other similar factors. 3 Table of Contents We warrant our new homes against defective materials and workmanship for a minimum period of one year after the date of closing.
We have a corporate risk management policy under which we hedge our interest rate risk on rate-locked loan commitments and loans held-for-sale to mitigate exposure to interest rate fluctuations. 4 Table of Contents We have been using new technology to automate portions of our mortgage loan origination process.
We have a corporate risk management policy under which we hedge our interest rate risk on rate-locked loan commitments and loans held-for-sale to mitigate exposure to interest rate fluctuations. We have been using new technology to automate portions of our mortgage loan origination process.
The most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials and labor; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects; reductions in the market value of the Company's investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy and our planned spin-off of certain businesses; a decline in the value of the land and home inventories we maintain and resulting possible future 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 potential negative impact to our business of public health issues, including the coronavirus (COVID-19) pandemic; possible unfavorable outcomes in legal proceedings; changes in general economic and financial conditions that reduce demand for our products and services, lower our profit margins or reduce our access to credit; our inability to acquire land at anticipated prices; the possibility that we will incur nonrecurring costs that affect earnings in one or more reporting periods; the possibility that the benefit from our increasing use of technology will not justify its cost; increased competition for home sales from other sellers of new and resale homes; becoming unable to pay down debt; government actions or other factors that might force us to terminate our program of repurchasing our stock; the failure of the participants in various joint ventures to honor their commitments; difficulty obtaining land-use entitlements or construction financing; new laws or regulatory changes that adversely affect the profitability of our businesses (including changes in tax laws or liabilities); our inability to refinance our debt on terms that are as favorable as our current arrangements; and changes in accounting conventions that adversely affect our reported earnings.
The most important factors that could cause actual results to differ materially from those anticipated by our forward-looking statements include, but are not limited to: slowdowns in real estate markets in regions where we have significant Homebuilding or Multifamily development activities or own a substantial number of single-family homes for rent; decreased demand for our homes, either for sale or for rent, or Multifamily rental apartments; the potential impact of inflation; the impact of increased cost of mortgage financing for homebuyers, increased or continued high interest rates or increased competition in the mortgage industry; supply shortages and increased costs related to construction materials and labor; the possibility that increased tariffs will increase the cost of production materials; cost increases related to real estate taxes and insurance; the effect of increased interest rates with regard to our funds' borrowings on the willingness of the funds to invest in new projects; reductions in the market value of the Company's investments in public companies; natural disasters or catastrophic events for which our insurance may not provide adequate coverage; our inability to successfully execute our strategies, including our land lighter strategy and our planned spin-off; problems exercising options to purchase homesites; 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 potential negative impact to our business of public health issues; possible unfavorable outcomes in legal proceedings; changes in general economic and financial conditions that reduce demand for our products and services, lower our profit margins or reduce our access to credit; our inability to acquire land at anticipated prices; the possibility that we will incur nonrecurring costs that affect earnings in one or more reporting periods; the possibility that the benefit from our increasing use of technology will not justify its cost; increased competition for home sales from other sellers of new and resale homes; becoming unable to pay down debt; government actions or other factors that might force us to terminate our program of repurchasing our stock; the failure of the participants in various joint ventures to honor their commitments; difficulty obtaining land-use entitlements or construction financing; harm to our business from information technology failures and data security breaches; new laws or regulatory changes that adversely affect the profitability of our businesses (including changes in tax laws or liabilities); our inability to refinance our debt on terms that are as favorable as our current arrangements; and changes in accounting conventions that adversely affect our reported earnings.
For fiscal 2023, the average sales price, excluding deliveries from unconsolidated entities, was $446,000, compared to $480,000 in fiscal 2022 and $424,000 in fiscal 2021. 1 Table of Contents We operate primarily under the Lennar brand name. Our homebuilding mission is focused on the profitable development of residential communities.
For fiscal 2024, the average sales price, excluding deliveries from unconsolidated entities, was $423,000, compared to $446,000 in fiscal 2023 and $480,000 in fiscal 2022. 1 Table of Contents We operate primarily under the Lennar brand name. Our homebuilding mission is focused on the profitable development of residential communities.
In fiscal year 2023, our financial services subsidiaries provided loans to 81% of our homebuyers who obtained mortgage financing in areas where we offered services. Because of the availability of mortgage loans from our financial services subsidiaries, as well as from independent mortgage lenders, we believe almost all creditworthy potential purchasers of our homes have access to financing.
In fiscal year 2024, our financial services subsidiaries provided loans to 84% of our homebuyers who obtained mortgage financing in areas where we offered services. Because of the availability of mortgage loans from our financial services subsidiaries, as well as from independent mortgage lenders, we believe almost all creditworthy potential purchasers of our homes have access to financing.
However, the Multifamily business now manages, and owns interests in, longer-duration funds that build multifamily communities with the intention of retaining them as rental income-generating assets. At November 30, 2023, Multifamily had interests in, and was managing, three funds and 22 joint ventures.
However, the Multifamily business now manages, and owns interests in, longer-duration funds that build multifamily communities with the intention of retaining them as rental income-generating assets. At November 30, 2024, Multifamily had interests in, and was managing, three funds and 23 joint ventures.
New home deliveries, including deliveries from unconsolidated entities, were 73,087 in fiscal 2023, compared to 66,399 in fiscal 2022 and 59,825 in fiscal 2021. We primarily sell homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The average sales price of a Lennar home varies depending on product and geographic location.
New home deliveries, including deliveries from unconsolidated entities, were 80,210 in fiscal 2024, compared to 73,087 in fiscal 2023 and 66,399 in fiscal 2022. We primarily sell homes in communities targeted to first-time, move-up, active adult, and luxury homebuyers. The average sales price of a Lennar home varies depending on product and geographic location.
In some instances, purchasers are permitted to cancel sales contracts if they fail to qualify for financing or under certain other circumstances. We experienced a cancellation rate of 16% in 2023 and 17% in 2022.
In some instances, purchasers are permitted to cancel sales contracts if they fail to qualify for financing or under certain other circumstances. We experienced a cancellation rate of 14% in 2024 and 16% in 2023.
Most communities offer residents a mix of studio, one, two, and three-bedroom homes. 5 Table of Contents As of November 30, 2023, funds and ventures managed by Multifamily had a pipeline of 48 potential future developments, which were owned, under contract or subject to letters of intent, totaling approximately $6.2 billion in anticipated development costs across several states.
Most communities offer residents a mix of studio, one, two, and three-bedroom homes. As of November 30, 2024, funds and ventures managed by Multifamily had a pipeline of 57 potential future developments, which were owned, under contract or subject to letters of intent, totaling approximately $6.5 billion in anticipated development costs across several states.
However, we retained the right to share in carried interest distributions from some of the funds and other investment vehicles Rialto manages. We also retained limited partner investments in several Rialto funds and investment vehicles that totaled $148.7 million as of November 30, 2023. Seasonality We historically have experienced, and expect to continue to experience, variability in quarterly results.
However, we retained the right to share in carried interest distributions from some of the funds and other investment vehicles Rialto manages. We also retained limited partner investments in several Rialto funds and investment vehicles that totaled $140.1 million as of November 30, 2024. Seasonality We historically have experienced, and expect to continue to experience, variability in quarterly results.
Each new home we build is healthier and more energy efficient, and has less impact on the environment, than prior generations of homes as a result of features like: • Low-VOC paint that reduces pollution; • WaterSense® faucets that reduce water flow without sacrificing performance; • Low-E windows that reduce infrared and ultraviolet light coming into the home; and • Energy Star® appliances that reduce energy consumption.
Each new home we build is healthier and more energy efficient, and has less impact on the environment, than prior generations of homes as a result of features like: • Low-VOC paint that reduces pollution with less odor and hazard; • WaterSense® faucets that reduce water flow without sacrificing performance; • Low-E windows that reduce infrared and ultraviolet light coming into the home, make homes cooler, and reduce damage to furnishing; and • Energy Star® appliances that reduce energy consumption.
We have no active role in the management of FivePoint, except that since August 2021 our Executive Chairman and Co-Chief Executive Officer has been the non-employee Executive Chairman of the Board of Directors (but not the chief executive officer) of FivePoint. As of November 30, 2023, the carrying amount of our investment in FivePoint was $422.2 million.
We have no active role in the management of FivePoint, except that since August 2021 our Executive Chairman and Co-Chief Executive Officer has been the non-employee Executive Chairman of the Board of Directors (but not the chief executive officer) of FivePoint. As of November 30, 2024, the carrying amount of our investment in FivePoint was $470.8 million.
We also have investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry. Our homebuilding operations are the most substantial part of our business, generating $33 billion in revenues, or approximately 95% of consolidated revenues, in fiscal 2023.
We also have investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry. Our homebuilding operations are the most substantial part of our business, generating $34 billion in revenues, or approximately 96% of consolidated revenues, in fiscal 2024.
We do not recognize revenue on homes that are the subject of sales contracts until the sales are closed and title passes to the new homeowners. The backlog dollar value including unconsolidated entities at November 30, 2023 was $6.6 billion, compared to $8.7 billion at November 30, 2022.
We do not recognize revenue on homes that are the subject of sales contracts until the sales are closed and title passes to the new homeowners. The backlog dollar value including unconsolidated entities at November 30, 2024 was $5.4 billion, compared to $6.6 billion at November 30, 2023.
At November 30, 2023, 76% of our total homesites were controlled through options with land banks, land sellers and joint ventures compared to 69% at November 30, 2022.
At November 30, 2024, 82% of our total homesites were controlled through options with land banks, land sellers and joint ventures compared to 76% at November 30, 2023.
From inception through November 30, 2023, the Multifamily business has capitalized and developed 119 multifamily residential communities with approximately 35,900 rental units across 20 states throughout the United States. The communities developed by the Multifamily business include a diversified mix of conventional garden, mid-rise and high-rise multifamily properties in urban and suburban locations near major employment centers.
From inception through November 30, 2024, the Multifamily business has capitalized and developed 123 multifamily residential communities with approximately 37,100 rental units across 20 states throughout the United States. The communities developed by the Multifamily business include a diversified mix of conventional garden, mid-rise and high-rise multifamily properties in urban and suburban locations near major employment centers.
We use independent subcontractors for most aspects of land development and home construction. At November 30, 2023, we were actively building and marketing homes in 1,260 communities, including five communities being constructed by unconsolidated entities.
We use independent subcontractors for most aspects of land development and home construction. At November 30, 2024, we were actively building and marketing homes in 1,447 communities, including 11 communities being constructed by unconsolidated entities.
This was an increase from the 1,208 communities, including eight communities being constructed by unconsolidated entities, in which we were actively building and marketing homes at November 30, 2022. At November 30, 2023 and 2022, we had about 1,200 and 900 completed unsold homes, respectively.
This was an increase from the 1,260 communities, including five communities being constructed by unconsolidated entities, in which we were actively building and marketing homes at November 30, 2023. At November 30, 2024 and 2023, we had about 2,900 and 1,200 completed unsold homes, respectively.
As of both November 30, 2023 and 2022, we had equity investments in 48 active homebuilding and land unconsolidated entities, in which we were participating, and our maximum recourse debt exposure related to Homebuilding unconsolidated joint ventures was $42.1 million and $9.1 million, respectively.
As of both November 30, 2024 and 2023, we had equity investments in 51 active homebuilding and land unconsolidated entities, in which we were participating, and our maximum recourse debt exposure related to Homebuilding unconsolidated joint ventures was $44.2 million and $42.1 million, respectively.
Title, Insurance and Closing Services We are licensed to provide title insurance, and closing services for residential and/or commercial transactions in 41 states to our homebuyers and others. During fiscal 2023 and 2022, we provided closing services with regard to approximately 74,900 and 68,800 real estate transactions, respectively, in 25 and 20 states, respectively.
Title, Insurance and Closing Services We are licensed to provide title insurance, and closing services for residential and/or commercial transactions in 41 states to our homebuyers and others. During fiscal 2024 and 2023, we provided closing services with regard to approximately 82,400 and 74,900, real estate transactions, respectively, in 25 states.
During fiscal year 2023, we originated approximately 47,000 residential mortgage loans totaling $17.4 billion, compared to 37,700 residential mortgage loans totaling $14.4 billion during fiscal year 2022. Substantially all of the residential mortgage loans we originate are sold within a short period in the secondary mortgage market, a majority of them on a servicing-released, non-recourse basis.
During fiscal year 2024, we originated approximately 54,600 residential mortgage loans totaling $19.8 billion, compared to 47,000 residential mortgage loans totaling $17.4 billion during fiscal year 2023. Substantially all of the residential mortgage loans we originate are sold within a short period in the secondary mortgage market, a majority of them on a servicing-released, non-recourse basis.
We do not believe that the ultimate resolution of these claims will have a material adverse effect on our business or financial position. During fiscal year 2023, we also locked interest rates on approximately 46,600 residential mortgage loans totaling $17.2 billion, compared to 41,100 residential mortgage loans totaling $15.7 billion during fiscal year 2022.
We do not believe that the ultimate resolution of these claims will have a material adverse effect on our business or financial position. During fiscal year 2024, we also locked interest rates on approximately 54,200 residential mortgage loans totaling $19.5 billion, compared to 46,600 residential mortgage loans totaling $17.2 billion during fiscal year 2023.
We finance our mortgage loan activities with borrowings under our financial services warehouse facilities or funds from our operating activities. At November 30, 2023, Financial Services had five warehouse residential facilities maturing at various dates through fiscal 2024 with a total maximum borrowing capacity of $2.5 billion including an uncommitted amount of $750 million.
We finance our mortgage loan activities with borrowings under our financial services warehouse facilities or funds from our operating activities. At November 30, 2024, Financial Services had six warehouse residential facilities maturing at various dates through fiscal 2027 with a total maximum borrowing capacity of $3.1 billion including an uncommitted amount of $675 million.
At November 30, 2023, we employed 12,284 individuals of whom 9,622 were involved in the Homebuilding operations, 1,792 were involved in the Financial Services operations and 870 were involved in the Multifamily operations, compared to November 30, 2022, when we employed 12,012 individuals of whom 9,357 were involved in the Homebuilding operations, 1,748 were involved in the Financial Services operations and 907 were involved in the Multifamily operations.
At November 30, 2024, we employed 13,265 individuals of whom 10,653 were involved in the Homebuilding operations, 2,066 were involved in the Financial Services operations and 546 were involved in the Multifamily operations, compared to November 30, 2023, when we employed 12,284 individuals of whom 9,622 were involved in the Homebuilding operations, 1,792 were involved in the Financial Services operations and 870 were involved in the Multifamily operations.
We finance construction and land development activities primarily with cash generated from operations and historically from proceeds of unsecured corporate debt. Marketing We offer a diversified line of homes for first-time, move-up, active adult, luxury and multi-generational homebuyers in a variety of locations ranging from urban infill communities to suburban golf course communities.
Marketing We offer a diversified line of homes for first-time, move-up, active adult, luxury and multi-generational homebuyers in a variety of locations ranging from urban infill communities to suburban golf course communities.
These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions. We wish to caution readers that certain important factors may have affected and could in the future affect our 9 Table of Contents actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements.
We wish to caution readers that certain important factors may have affected and could in the future affect our actual results and could cause actual results to differ significantly from what is anticipated by our forward-looking statements.
As of November 30, 2023, institutional investors and Lennar had committed $1.6 billion to Upward America, part of which was used to reduce an initial commitment Lennar had made from $225 million to $125 million.
The investment period for Upward America closed in 2024, reducing the equity commitments from investors from $1.6 billion to $1.0 billion. As of November 30, 2024, institutional investors and Lennar had committed $1.0 billion to Upward America, part of which was used to reduce an initial commitment Lennar had made from $225 million to $78.1 million.
("Blend"), a digital lending platform developer simplifying and fast tracking the consumer finance process; • Doma Holdings, Inc. ("Doma"), a company that built a predictive analytics platform for title insurers; • Hippo Holdings, Inc. ("Hippo"), a company that provides an efficient means of obtaining home insurance; • Opendoor Technologies, Inc.
("Blend"), a digital lending platform developer simplifying and fast tracking the consumer finance process; • Hippo Holdings, Inc. ("Hippo"), a company that provides an efficient means of obtaining home insurance; • Opendoor Technologies, Inc. ("Opendoor"), a company that uses technology to significantly streamline the homebuying and selling process; • SmartRent, Inc.
At November 30, 2023, Upward America had purchased 4,697 homes in 103 communities across 19 metropolitan statistical areas for a total purchase price of $1.2 billion (an average price of $258,000 per home), of which 4,420 of the homes owned by Upward America had been leased to occupants.
At November 30, 2024, Upward America had purchased 4,697 homes in 103 communities across 19 metropolitan statistical areas for a total purchase price of $1.2 billion (an average price of $258,000 per home) and disposed of 92 homes for a total sales price of $26.0 million (an average price of $283,000 per home).
In 2021, we sold our SunStreet solar operations to Sunnova, a leading national residential solar company, in exchange for stock in the company. We believe Sunnova will be better able than us at maximizing the potential of the SunStreet solar operations.
In 2021, we sold our SunStreet solar operations to Sunnova, a leading national residential solar company, in exchange for stock in the company.
Homebuilding Operations Overview Our homebuilding operations include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through entities in which we have investments.
In connection with this transition, we expect to spin off a significant portion of our land assets to Millrose (as defined below), as discussed further below under the caption “Homebuilding Operations – Millrose Spin-Off.” Homebuilding Operations Overview Our homebuilding operations include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly through entities in which we have investments.
During fiscal 2023, even with shifts in macroeconomic factors and adjusting to the recent inflationary environment, we were able to develop, enhance, use, and improve the Lennar machine. Our sales, marketing, and dynamic pricing machine is quickly becoming an advanced digital engine that has materially benefited from aggressive, focused use and engagement while the market was most difficult.
Our sales, marketing, and dynamic pricing machine is quickly becoming an advanced digital engine that has materially benefited from aggressive, focused use and engagement while the market was most difficult.
These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will”, "may" or other words of similar meaning. Some of them are opinions formed based upon general observations, anecdotal evidence and industry experience, but that are not supported by specific investigation or analysis.
These forward-looking statements typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will”, "may" or other words of similar meaning.
During fiscal 2023, significant increases in interest rates made our homes less affordable to many prospective buyers and led us to reduce prices or increase sales incentives in a number of our communities to maintain sales pace. Quality Service We continually strive to improve homeowner customer satisfaction throughout the pre-sale, sale, construction, closing and post-closing periods.
During fiscal 2024 and 2023, increased interest rates as compared to prior years have made our homes less affordable to many prospective buyers and led us to reduce prices or increase sales incentives in a number of our communities to maintain sales pace.
We are also partnering with Sunnova for it to be our exclusive residential home solar and battery storage provider, and we are working with Sunnova on the development of community solar microgrids. 8 Table of Contents Human Capital Management Diversity, Equity and Inclusion; Talent and Development Our associates (i.e., employees) are our most valuable asset, and we are committed to supporting each associate’s unique career journey.
We consistently seek opportunities to integrate solar power where it provides great value for our homebuyers. 9 Table of Contents Human Capital Management Diversity, Equity and Inclusion; Talent Management and Leadership Development Our associates (i.e., employees) are our most valuable asset, and we are committed to supporting each associate’s unique career journey.
In order to finance LMF Commercial lending activities, as of November 30, 2023, LMF Commercial had three warehouse repurchase financing agreements maturing at various dates from December 2023 through fiscal 2024 with commitments totaling $500 million. This is discussed in greater detail in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report.
In order to finance LMF Commercial lending activities, as of November 30, 2024, LMF Commercial had two warehouse repurchase financing agreements maturing at various dates from 2025 through 5 Table of Contents fiscal 2026 with commitments totaling $300 million.
("Opendoor"), a company that uses technology to significantly streamline the homebuying and selling process; • SmartRent, Inc. ("SmartRent"), an enterprise smart home automation company; • Sonder Holdings, Inc. ("Sonder"), a company that manages short-term rentals, such as rental hotels; and • Sunnova Energy International, Inc.
("SmartRent"), an enterprise smart home automation company; • Sonder Holdings, Inc. ("Sonder"), a company that manages short-term rentals, such as rental hotels; and • Sunnova Energy International, Inc. ("Sunnova"), a leading national residential solar company, to which during 2021, we sold our solar power business in return for equity.
Lennar subsidiaries may also receive fees for property management, leasing, construction management and other services that they render through subcontractors.
Lennar subsidiaries may also receive fees for property management, leasing, construction management and other services that they render through subcontractors. In April 2024, Upward America entered into a joint venture agreement and property management agreement with Invitation Homes. In addition, Lennar engaged Invitation Homes to provide certain asset management services for the Upward America Venture.
Doma is accounted for using the equity method. At November 30, 2023, the book value of our investment in strategic technology investments (including those recorded at fair value) was $424.7 million and is included in our Lennar Other segment.
Each of the investments listed above is reflected in our financial statements at market value, with changes to the fair values of those investments generating gains or losses on our financial statements. At November 30, 2024, the book value of our investment in strategic technology investments was $587.1 million and is included in our Lennar Other segment.
Removed
("Sunnova"), a leading national residential solar company, to which during 2021, we sold our solar power business in return for equity. Each of the investments listed above, except Doma, is reflected in our financial statements at market value, with changes to the fair values of those investments generating gains or losses on our quarterly financial statements.
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We focus on executing our operating strategy to be a consistent and high-volume homebuilder with production pace in sync with sales pace while using our gross margin as a shock absorber.
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We have policies that prohibit us from discriminating in employment opportunities on the basis of race or gender, and we take active steps to offer employment opportunities to members of under-represented ethnic groups.
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Our Next Gen ® home provides what can be a home within a home to accommodate children or parents or can be an office from which to work remotely. • Core Plans - We are integrating standardized, highly efficient, value engineered Plan series across all divisions at different price points.
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In connection with this strategy, we expect to spin off a significant portion of our land assets to Millrose, as discussed further below under the caption “Homebuilding Operations – Millrose Spin-Off.” • Even flow production - We adjust prices, with our gross margin being a shock absorber, in an effort to maintain consistent starts and sales paces in order to generate increased market share in all the markets we build in.
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We finance construction and land development activities primarily with cash generated from operations and historically from proceeds of unsecured corporate debt.
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Following the Millrose Spin-Off, we expect that, when Millrose acquires undeveloped or partially developed land that we have options to purchase, Millrose will finance the horizontal development of all such homesites up to pre-negotiated development budgets, which will be incorporated into the takedown prices for Lennar’s purchase options on the properties.
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During fiscal 2024 and 2023, even with shifts in macroeconomic factors and adjusting to an inflationary environment in much of the period, we were able to develop, enhance, use, and improve the Lennar machine.
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Quality Service We continually strive to improve homeowner customer satisfaction throughout the pre-sale, sale, construction, closing and post-closing periods.
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This is discussed in greater detail in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Report. Millrose Spin-Off We are currently preparing to spin off (the “Millrose Spin-Off”) a wholly owned subsidiary of Lennar, Millrose Properties Inc.
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(“Millrose”) into an independent, publicly traded company that will be listed on the New York Stock Exchange.
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In connection with the Millrose Spin-Off, we plan to contribute to Millrose, in exchange for all outstanding shares of its common stock, a significant portion of our undeveloped, partially developed, and some of our fully developed, land, with an expected total aggregate value between $5.0 billion and $6.0 billion, as well as approximately $1.0 billion of cash.
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To consummate the Millrose Spin-Off, on January 10, 2025, our Board of Directors ("Board") declared a stock dividend, pursuant to which we will distribute to Lennar’s stockholders of record as of January 21, 2025 approximately 80% of the total outstanding number of shares of Millrose common stock on February 7, 2025.
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The goal of the Millrose Spin-off is to generally complete our migration to an asset-light operating model by spinning off a significant portion of our land assets from our balance sheet.
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We expect Millrose to qualify as a real estate investment trust that will acquire and develop land and will deliver fully developed homesites under a land option contract on a just in time basis for Lennar and potentially other homebuilders. Millrose is expected to maintain a business model with a self-sustaining, recycling source of land acquisition and development capital.
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Millrose is expected to be responsible for paying to develop the undeveloped and partially developed land into homesites up to a certain pre-negotiated budget, with Lennar performing the actual construction work. Lennar will have options to purchase the homesites in accordance with pre-set takedown schedules when Lennar expects to be ready to build homes on them.
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Millrose is expected to use option exercise proceeds to purchase additional land designated by Lennar or other homebuilders in the future, usually giving Lennar or the other homebuilders options to purchase the land when it is developed.
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As a result of the Millrose Spin-Off, both our inventory and our equity will be reduced by the amount of assets contributed to Millrose.
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However, our balance sheet will remain very strong after the Millrose Spin-Off and we expect to have ample funds with which to pay down debt, issue dividends and repurchase stock. 4 Table of Contents Millrose has filed with the Securities and Exchange Commission a registration statement on Form S-11 relating to the Millrose Spin-Off, which became effective on January 17, 2025.
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We expect that the Millrose Spin-Off will be completed by February 7, 2025, the distribution date of the Millrose common stock shares to Lennar’s stockholders, but there is no guarantee that the transaction will be completed on our anticipated timeline.
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Pending Acquisition of Rausch Coleman Homes During the fourth quarter of 2024, we entered into a definitive agreement to purchase Rausch Coleman Homes, a residential homebuilder based in Fayetteville, Arkansas. With this acquisition, we will expand our footprint into new markets in Arkansas, Oklahoma, Alabama, Kansas and Missouri while adding to our existing footprint in Texas, Oklahoma, Alabama and Florida.
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As previously disclosed in Millrose’s registration statement on Form S-11, in connection with furthering our land light strategy, we intend to assign the purchase of Rausch Coleman's land assets (the “Rausch Land Assets”) to Millrose.
Added
Similar to the other land assets that Lennar expects to contribute to Millrose in connection with the Millrose Spin-Off, Lennar expects to enter into options to purchase the developed Rausch Land Assets in accordance with pre-set takedown schedules. We are expecting the acquisition to be completed in our first quarter of 2025.
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Lennar Multifamily Venture Fund I (“LMV I") is a long-term multifamily development investment vehicle involved in the development, construction and property management of class-A multifamily assets. As of November 30, 2023, there were 38 rental operation projects in LMV I.
Added
During the second half of fiscal 2024, the LMV I partners decided to liquidate and sell all of the individual rental operation projects of LMV I 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.
Added
We recognized a net gain of $211.5 million on the sale of these rental operation projects which was recorded as equity in earnings (losses) in the condensed consolidated statement of operations and received net cash distributions of $199.5 million. The remaining LMV I rental operation projects are expected to be monetized in the near term.
Added
We are firmly committed to providing equal employment opportunities for all applicants and employees. Our Code of Business Ethics and Conduct prohibits discrimination on the basis of a person’s race, color, religion, sex, sexual orientation, gender identity or expression, national origin, disability, veteran status, genetic information, or any other legally protected status.
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Some of them are opinions formed based upon general observations, anecdotal evidence and industry experience, but that are not supported by specific investigation or analysis. 10 Table of Contents These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties and assumptions.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf either or both conflicts escalate further or if additional countries join either conflict, that may lead potential homebuyers to decide not to invest in new homes at this time, which could have a material impact on our business operations and financial performance.
Biggest changeInternational conflicts also may lead potential homebuyers to decide not to invest in new homes at this time, which could have a material impact on our business operations and financial performance. 12 Table of Contents Our results of operations and financial condition may be adversely affected by public health issues, and resulting governmental actions The United States has experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and public perception of health risk.
Multifamily . Our multifamily rental business competes with other developers and operators of multifamily apartment communities at locations across the U.S. where we have investments in multifamily rental properties.
Our multifamily rental business competes with other developers and operators of multifamily apartment communities at locations across the U.S. where we have investments in multifamily rental properties.
Among other things, changes made by Fannie Mae, Freddie Mac, Ginnie Mae and FHA/VA to sponsored mortgage programs, as well as changes made in recent years by private mortgage insurance companies, have reduced the ability of a number of potential homebuyers to qualify for mortgages.
Among other things, changes made by Fannie Mae, Freddie Mac, Ginnie Mae and FHA/VA in recent years to sponsored mortgage programs, as well as changes made in recent years by private mortgage insurance companies, have reduced the ability of a number of potential homebuyers to qualify for mortgages.
If our ability to sell mortgages into the secondary market is impaired, that could significantly reduce our ability to sell homes unless we are willing to become a long-term investor in loans we originate. Substantially all of the residential mortgage loans we originate are sold within a short period in the secondary mortgage market on a servicing-released, non-recourse basis.
If our ability to sell residential mortgages into the secondary market is impaired, that could significantly reduce our ability to sell homes unless we are willing to become a long-term investor in loans we originate. Substantially all of the residential mortgage loans we originate are sold within a short period in the secondary mortgage market on a servicing-released, non-recourse basis.
This could reduce our available funds at a time when we are having difficulty generating all the funds we need from our operations, in capital markets or otherwise, and restrict our ability to obtain financing in the future.
This could reduce our available funds at a time when we are having difficulty generating all the funds we need from our operations, in the capital markets or otherwise, and restrict our ability to obtain financing in the future.
Dealings with people or institutions located outside the United States create risks related to currencies and to political affairs in various countries. In some instances, the government may review the possible effects of investments by non-U.S. entities on U.S. national security. We must also be careful to comply with U.S. anti-corruption laws.
Dealings with people or institutions located outside the United States create risks related to currencies and to political affairs in various countries. In some instances, the U.S government may review the possible effects of investments by non-U.S. entities on U.S. national security. We must also be careful to comply with U.S. anti-corruption laws.
Our Financial Services residential and commercial lending businesses compete with other residential and commercial mortgage lenders, including national, regional and local banks and other financial institutions. Mortgage lenders who have greater access to low cost funds, superior technologies or different lending criteria than we do may be able to offer more attractive financing to potential customers than we can.
Our Financial Services residential and commercial lending businesses compete with other residential and commercial mortgage lenders, including national, regional and local banks and other financial institutions. Mortgage lenders who have greater access to low-cost funds, superior technologies or different lending criteria than we do may be able to offer more attractive financing to potential customers than we can. Multifamily .
As a result, the Company’s net earnings could be significantly affected by mark-to-market gains or losses on the Company’s investments. Changes in global or regional environmental conditions and governmental actions in response to such changes may adversely affect us by increasing the costs of or restricting our planned or future growth activities.
As a result, our net earnings could be significantly affected by mark-to-market gains or losses on our investments. Changes in global or regional environmental conditions and governmental actions in response to such changes may adversely affect us by increasing the costs of or restricting our planned or future growth activities.
We have tried to reduce the effect of the homes we build on the climate by installing solar power systems and other energy saving devices in many of those homes.
We have tried to reduce the effect of the homes we build on the climate by installing solar power systems and energy saving devices in many of those homes.
If we were unable to renew or replace these facilities on favorable terms or at all when they mature, that could seriously impede the activities of our Financial Services segment, which would have an impact on our financial results. An inability to obtain performance bonds or post letters of credit could adversely affect our operations.
If we are unable to renew or replace these facilities on favorable terms or at all when they mature, that could seriously impede the activities of our Financial Services segment, which would have an impact on our financial results. An inability to obtain performance bonds or post letters of credit could adversely affect our operations.
If we have significant liabilities with respect to such claims, it could have an adverse effect on our results of operations, and possibly our financial condition. Financing Risks Failure to comply with the covenants and conditions imposed by our borrowing facilities could restrict future borrowing or cause our debt to become immediately due and payable.
If we have significant liabilities with respect to such claims, it could have an adverse effect on our results of operations, and possibly our financial condition. Financing Risks Failure to comply with the covenants and conditions imposed by our lenders could restrict future borrowing or cause our debt to become immediately due and payable.
Demand for our homes is dependent on a variety of macroeconomic factors, such as employment levels, interest rates, changes in stock market valuations, consumer confidence, housing demand, availability and cost of financing for homebuyers, availability and prices of new homes compared to those of previously occupied homes, and demographic trends.
Demand for our homes is dependent on a variety of macroeconomic factors, such as employment levels, inflation, interest rates, changes in stock market valuations, consumer confidence, consumer income, housing demand, availability and cost of financing for homebuyers, availability and prices of new homes compared to those of previously occupied homes, and demographic trends.
Stuart Miller, our Executive Chairman and Co-Chief Executive Officer, through family and personal holdings of Class B, and to a lesser extent Class A, common stock, has the power to cast approximately 36% of the votes that can be cast by the holders of all our outstanding Class A and Class B common stock combined. This gives Mr.
Stuart Miller, our Executive Chairman and Co-Chief Executive Officer, through family and personal holdings of Class B, and to a lesser extent Class A, common stock, has the power to cast approximately 40% of the votes that can be cast by the holders of all our outstanding Class A and Class B common stock combined. This gives Mr.
Our ability to obtain surety bonds primarily depends upon our credit rating, financial condition, past performance and similar factors, the capacity of the surety market and the underwriting practices of surety bond issuers. Our ability to obtain surety bonds also can be impacted by the willingness of insurance companies to issue performance bonds for construction and development activities.
Our ability to obtain surety bonds primarily depends upon our credit rating, financial condition, past performance and similar factors, the capacity of the surety market and the underwriting practices of surety bond issuers. Our ability to obtain surety bonds also can be impacted by unwillingness of insurance companies to issue performance bonds for construction and development activities.
These factors can be significantly adversely affected by a variety of factors beyond our control. Currently, potential purchasers of our homes are being affected by inflation and increased interest rates, both of which increase what homebuyers have to pay for new homes. Negative publicity could hurt our reputation, which could cause our revenues or results of operations to decline.
These factors can be significantly adversely affected by a variety of factors beyond our control. Currently, potential purchasers of our homes are being affected by inflation and continued high interest rates, both of which increase what homebuyers have to pay for new homes. Negative publicity could hurt our reputation, which could cause our revenues or results of operations to decline.
While, to date, we have not had a cybersecurity breach or attack that had a material impact on our business or results of operations, if we were to be subject to a material successful cyber-intrusion, that could result in remediation or service restoration costs, increased cyber protection costs, lost revenues or loss of customers, litigation or regulatory actions by governmental authorities, increased insurance premiums, reputational damage and damage to our competitiveness, our stock price and our long-term stockholder value.
While, to date, we have not had a cybersecurity disruption, failure, breach or attack that had a material impact on our business or results of operations, if we were to be subject to a material successful cyber-incident, that could result in remediation or service restoration costs, increased cyber protection costs, lost revenues or loss of customers, litigation or regulatory actions by governmental authorities, increased insurance premiums, reputational damage and damage to our competitiveness, our stock price and our long-term stockholder value.
Although we expect all of our associates, officers and directors to comply at all times with all applicable laws, rules and regulations, there may be instances in which subcontractors or others through whom we do business engage in practices that do not comply with applicable laws, regulations or governmental guidelines.
Although we expect all of our associates, officers and directors to comply at all times with all applicable laws, rules and regulations, there may be instances in which subcontractors or others through whom we do business engage in practices 18 Table of Contents that do not comply with applicable laws, regulations or governmental guidelines.
However, various governmental agencies have sought, and in the future may seek, to hold contract parties like us responsible for violations of 17 Table of Contents wage and hour laws, workers’ compensation and other work-related laws by firms whose employees are performing contracted for services.
However, various governmental agencies have sought, and in the future may seek, to hold contract parties like us responsible for violations of wage and hour laws, workers’ compensation and other work-related laws by firms whose employees are performing contracted for services.
Our use of capital markets debt to help support our operations exposes us to a number of risks, including: • We may be more vulnerable to general adverse economic and homebuilding industry conditions; • We may have to pay higher interest rates upon refinancing indebtedness as a result of the increase in market interest rates, thereby reducing our earnings and cash flows; • We may find it difficult, or may be unable, to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements that would be in our best long-term interests; • We may be required to dedicate a substantial portion of our cash flow from operations to the payment of principal and interest on our debt, reducing the cash flow available to fund operations and investments and reducing the amount we can return to our stockholders; • We may have reduced flexibility in planning for, or reacting to, changes in our businesses or the industries in which they are conducted; • We may have a competitive disadvantage relative to other companies in our industry, if any, that are less leveraged; and • We may be required to sell debt or equity securities or sell some of our core assets, possibly on unfavorable terms, in order to meet debt payment obligations.
Our level of indebtedness exposes us to a number of risks, including: • We may be more vulnerable to volatility within the capital market, general adverse economic and homebuilding industry conditions; • We may have to pay higher interest rates upon refinancing indebtedness as a result of the increase in market interest rates, thereby reducing our earnings and cash flows; • We may find it difficult, or may be unable, to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements that would be in our best long-term interests; • We may be required to dedicate a substantial portion of our cash flow from operations to the payment of principal and interest on our debt, reducing the cash flow available to fund operations and investments and reducing the amount we can return to our stockholders; 16 Table of Contents • We may have reduced flexibility in planning for, or reacting to, changes in our businesses or the industries in which they are conducted; • We may have a competitive disadvantage relative to other companies in our industry, if any, that are less leveraged; and • We may be required to sell debt or equity securities or sell some of our core assets, possibly on unfavorable terms, in order to meet debt payment obligations.
As a minority investor, we have little or no influence over decisions made with regard to these funds and businesses. However, we could suffer significant losses of our investments as a result of decisions that are made by the funds and businesses.
As a minority investor, we have little or no influence over decisions made with regard to 20 Table of Contents these funds and businesses. However, we could suffer significant losses of our investments as a result of decisions that are made by the funds and businesses.
Housing has been considerably impacted by the more than doubling of mortgage interest rates in 2022, and continued increases in 2023. When interest rates increase, the cost of owning a new home increases, which usually reduces the number of potential buyers who can afford, or are willing, to purchase homes we build.
Housing has been considerably impacted by the more than doubling of mortgage interest rates in 2022 and 2023, and small decreases in 2024. When interest rates increase, the cost of owning a new home increases, which usually reduces the number of potential buyers who can afford, or are willing, to purchase homes we build.
We have a substantial level of indebtedness, which may have an adverse effect on our business or limit our ability to take advantage of business, strategic or financing opportunities. As of November 30, 2023, we had outstanding senior notes which we had sold into the capital markets over a number of years totaling $2.5 billion.
We have a substantial level of indebtedness, which may have an adverse effect on our business or limit our ability to take advantage of business, strategic or financing opportunities. As of November 30, 2024, we had outstanding senior notes which we had sold into the capital markets over a number of years totaling $2.0 billion.
We often are required to provide surety bonds to secure our performance of obligations under construction contracts, development agreements and other arrangements. At November 30, 2023, we had outstanding surety bonds of $4.5 billion including performance surety bonds related to site improvements at various projects (including certain projects of our joint ventures) and financial surety bonds.
We often are required to provide surety bonds to secure our performance of obligations under construction contracts, development agreements and other arrangements. At November 30, 2024, we had outstanding surety bonds of $5.1 billion including performance surety bonds related to site improvements at various projects (including certain projects of our joint ventures) and financial surety bonds.
Government mandates, standards or regulations intended to reduce greenhouse gas emissions or projected climate change impacts have resulted, and are likely to continue to result, in restrictions on land development in certain areas and increased energy, transportation and raw 19 Table of Contents material costs.
Government mandates, standards or regulations intended to reduce greenhouse gas emissions or projected climate change impacts have resulted, and are likely to continue to result, in restrictions on land development in certain areas and increased energy, transportation and raw material costs.
Our business requires us to finance much of the cost of developing our residential communities. One of the ways we do this is with bank borrowings. At November 30, 2023, we had a $2.6 billion revolving credit facility with a group of banks (the "Credit Facility"), which had an accordion feature that could increase it to $3 billion.
Our business requires us to finance much of the cost of developing our residential communities. One of the ways we do this is with bank borrowings. At November 30, 2024, we had a $2.9 billion revolving credit facility with a group of banks (the "Credit Facility"), which had an accordion feature that could increase it to $3.5 billion.
During 2024, we will have to replace or renew a total of $3.7 billion of warehouse lines used by Financial Services, including LMF Commercial, as they mature. We expect these facilities to be renewed or replaced with other facilities when they mature.
During 2025, we will have to replace or renew a total of $3.4 billion of warehouse lines used by Financial Services, including LMF Commercial, as they mature. We expect these facilities to be renewed or replaced with other facilities when they mature.
However, it is possible that those steps will not be successful, and that the combination of inflation and reduced demand for new homes will adversely affect our profitability. Further increase in mortgage interest rates could reduce potential buyers’ ability or desire to obtain financing with which to buy homes.
However, it is possible that those steps will not be successful, and that a combination of inflation and reduced demand for new homes driven by an increase in mortgage interest rates will continue to adversely affect our profitability. Further increase in mortgage interest rates could reduce potential buyers’ ability or desire to obtain financing with which to buy homes.
This would significantly impair our ability to carry out our strategy of reducing our inventory of owned land. 13 Table of Contents We could be hurt by refusals of owners of land to honor options or contracts to sell land to us.
This could significantly impair our ability to carry out our strategy of reducing our inventory of owned land. We could be hurt by refusals of owners of land to honor options or contracts to sell land to us.
A decline in prices of new homes could require us to write down the carrying value of land we own and to write off option costs. We are constantly purchasing land, or entering into arrangements to purchase land, for use in our homebuilding operations.
A decline in prices of new homes could require us to write down the carrying value of land we own and to write off option costs. We are constantly purchasing land, or acquiring options to purchase land, for use in our homebuilding operations.
It is possible that a continued downturn could result in a further decline in demand for new homes with resulting write downs in the carrying value of our land inventory and write offs of costs of land purchase options we decide not to exercise. Inflation could adversely affect our profitability.
It is possible that a continued market weakness could result in a further decline in demand for new homes with resulting price reductions which could require write downs in the carrying value of our land inventory and write offs of costs of land purchase options we decide not to exercise. Inflation could adversely affect our profitability.
Depending on the stage of development a land parcel is in when we acquire it, these may include costs of preparing land, finishing and entitling lots, installing roads, sewers, water systems and other utilities, and taxes and other costs related to ownership of the land on which we plan to build homes.
Depending on the stage of development a land parcel is in when we acquire it (or when it is acquired by Millrose or another land banking entity), these may include costs of preparing land, finishing and entitling lots, installing roads, sewers, water systems and other utilities, and taxes and other costs related to ownership of the land on which we plan to build homes.
However, if the amounts we are required to pay as a result of claims against us substantially exceed the sums anticipated by our reserves, the need to pay those amounts could have an adverse effect on our results of operations for the periods when we are required to make the payments. We could be subject to unexpected tax liabilities.
However, if the amounts we are required to pay as a result of claims against us substantially exceed the sums anticipated by our reserves, the need to pay those amounts could have an adverse effect on our results of operations for the periods when we are required to make or accrue the payments.
The indentures governing our senior notes do not restrict our incurrence of future secured or unsecured debt, and the agreement governing our Credit Facility allows us to incur a substantial amount of future unsecured debt. We reduced our outstanding senior notes during fiscal 2023 by $1.1 billion, but we still have a significant amount outstanding.
The indentures governing our senior notes do not restrict our incurrence of future secured or unsecured debt, and the agreement governing our Credit Facility allows us to incur a substantial amount of future unsecured debt. We reduced our outstanding senior notes during fiscal 2024 by $554.0 million, but we still have a significant amount outstanding.
In addition, in an inflationary environment, our cost of capital, labor and materials can increase and the purchasing power of our cash resources can decline, which can have an adverse impact on our business or financial results. During fiscal 2023, we experienced an increase in the inflation rate.
In addition, in an inflationary environment, our cost of capital, labor and materials can increase and the purchasing power of our cash resources can decline, which can have an adverse impact on our business or financial results.
Land development and construction are inherently dangerous. While safety is a priority on our land development and construction sites, we cannot always control the way work is performed by subcontractors, including whether they comply with laws and regulations designed to maximize the safety of construction workers.
Excessive health and safety incidents relating to our operations could be costly to us. Land development and construction are inherently dangerous. While safety is a priority on our land development and construction sites, we cannot always control the way work is performed by subcontractors, including whether they comply with laws and regulations designed to maximize the safety of construction workers.
If we became unable to sell residential mortgage loans into the secondary mortgage market or directly to Fannie Mae, Freddie Mac and Ginnie Mae, we would have to either curtail our origination of residential mortgage loans, which among other things, could significantly reduce our ability to sell homes, or commit our own funds to long-term investments in mortgage loans, which, in addition to requiring us to deploy substantial amounts of our own funds, could delay the time when we recognize revenues from home sales on our statements of operations. 14 Table of Contents We may be liable for certain limited representations and warranties we make in connection with the sale of loans.
If we became unable to sell residential mortgage loans into the secondary mortgage market or directly to Fannie Mae, Freddie Mac and Ginnie Mae, we would have to either curtail our origination of residential mortgage loans, which among other things, could significantly reduce our ability to sell homes, or commit our own funds to long-term investments in mortgage loans, which, in addition to requiring us to deploy substantial amounts of our own funds, could delay the time when we recognize revenues from home sales on our statements of operations.
With the increase in interest rates, we have experienced an increase in cancellation rates. If there is a weakening of the housing market, or if mortgage financing becomes less available or more expensive than it currently is, more homebuyers may cancel their agreements of sale with us, which would have an adverse effect on our business and results of operations.
If there is a weakening of the housing market, or if mortgage financing becomes less available or more expensive than it currently is or is expected to be more homebuyers may cancel their agreements of sale with us, which would have an adverse effect on our business and results of operations.
We have provisions and reserves for taxes that we believe are sufficient to reflect our future tax obligations. However, it is possible that a taxing authority will successfully assert that we owe taxes that we do not believe that we owe and for which 18 Table of Contents we do not have a provision or reserves.
We could be subject to unexpected tax liabilities. We have provisions and reserves for taxes that we believe are sufficient to reflect our future tax obligations. However, it is possible that a taxing authority will successfully assert that we owe taxes that we do not believe that we owe and for which we do not have a provision or reserves.
It is 10 Table of Contents possible that the land lighter or other strategies will reduce, rather than increase, the value and profitability of our core businesses. The market for new homes is cyclical, and a continuing downturn in the homebuilding market could adversely affect our operations.
We cannot provide assurance that this strategy, or other strategies we will follow, will increase our value. It is possible that the land lighter or other strategies will reduce, rather than increase, the value and profitability of our core businesses. The market for new homes is cyclical, and a continuing downturn in the homebuilding market could adversely affect our operations.
We also had warehouse borrowing facilities totaling $3.7 billion to support our residential and commercial mortgage lending activities. The interest on borrowings under the Credit Facility is at rates based on prevailing short-term rates from time to time. In 2022 and 2023, the Federal Reserve steadily raised benchmark interest rates.
We also had warehouse borrowing facilities totaling $3.4 billion to support our residential and commercial mortgage lending activities. The interest on borrowings under the Credit Facility is at rates based on prevailing short-term rates from time to time.
If the additional taxes are material, they could adversely affect our income tax provision in the period in which such determination is made and, consequently, our operating results and financial condition. Information technology failures and data security breaches could harm our business.
If the additional taxes are material, they could adversely affect our income tax provision and, consequently, our operating results and financial condition, in the period in which we determine we need an additional provision or reserves. Information technology failures and data security breaches could harm our business.
Adverse publicity or negative commentary from media outlets could damage our reputation and reduce the demand for our homes, which would adversely affect our business. Our business strategies for our homebuilding and mortgage finance businesses may not increase our value. Our strategies for our core homebuilding and mortgage finance businesses, and any related initiatives or actions, may not be successful.
Adverse publicity or negative commentary from media outlets could damage our reputation and reduce the demand for our homes, which would adversely affect our business. 11 Table of Contents Our business strategies for our homebuilding and mortgage finance businesses may not increase our value.
Sales of senior debt into the capital markets has, until recently, been a significant source of funding for our operations and acquisitions.
Sales of senior debt into the capital markets was historically a significant source of funding for our operations and acquisitions.
Principal among our current strategies is continuing to reduce the inventory of land we own (i.e., to become a land lighter company), and to control a greater portion of the land we expect to use through options or other contractual arrangements. We cannot provide assurance that this strategy, or other strategies we will follow, will increase our value.
Principal among our current strategies is continuing to reduce the inventory of land we own (i.e., to become a land lighter company), and to control a greater portion of the land we expect to use through options or other contractual arrangements, including through the proposed Millrose Spin-Off.
Currently, there are significant income tax benefits from owning a home, including deductibility of interest on mortgage loans incurred to finance home purchases.
Currently, there are significant income tax benefits from owning a home, including deductibility of all or some interest on mortgage loans incurred to finance home purchases and the deductibility of property taxes, subject to certain limits.
Weak demand may preclude us from raising home prices enough to keep up with the rate of inflation, which could reduce our profit margins.
Weaker demand has precluded us from raising home prices enough to keep up with the rate of inflation, which has reduced our profit margins.
However, cyber intrusion efforts are becoming increasingly sophisticated, and it is possible that the controls we have installed could at some time be breached in a material respect.
Cyber intrusion efforts are becoming increasingly frequent and sophisticated, including as a result of the use of artificial intelligence, and it is possible that any controls we or third parties have installed could at some time be breached in a material respect.
We have made investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.
We could suffer significant losses if there are reductions in the market value of our investments in publicly traded companies. We have made investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.
If returns to investors in land banks are not sufficient to attract investor funds and land banks are not able to identify alternative sources of funding, we would no longer have access to land banks and instead might have to purchase our land directly from landowners.
Most land banks are funds that use financial investor capital to finance land acquisitions. If returns to investors in land banks are not sufficient to attract investor funds and land banks are not able to identify alternative sources of funding, we would no longer have access to land banks.
Therefore, a decrease in the demand for our homes or an increase in cash used by homebuyers would adversely affect the revenues of this aspect of our business.
Therefore, a decrease in the demand for our homes or an increase in the mortgage financing obtained by homebuyers from lenders other than our Financial Services segment would adversely affect the revenues of this aspect of our business.
Our IT systems, like those of most companies, may be vulnerable to a variety of disruptions, including, but not limited to, those caused by natural disasters, telecommunications failures, hackers, and other security issues. Moreover, our computer systems, like those of most companies, are subject to the possibility of computer viruses or other malicious codes, and to cyber or phishing-attacks.
These IT systems, like those used by most companies, may be vulnerable to a variety of disruptions, including, but not limited to, those caused by natural disasters, telecommunications failures, hackers, and other security issues.
Our quarterly results of operations may continue to fluctuate in the future as a result of a variety of factors, including, among others, seasonal homebuying patterns, the timing of home closings and land sales and weather-related problems. We could suffer significant losses if there are reductions in the market value of our investments in publicly traded companies.
Our quarterly results of operations may continue to fluctuate in the future as a result of a variety of factors, 21 Table of Contents including, among others, seasonal homebuying patterns, the timing of home closings and land sales and weather-related problems.
If federal or state tax laws are changed to eliminate or reduce any of these income tax benefits or if personal income tax rates were to increase, the after-tax cost of homeownership could measurably increase and diminish consumer interest in buying a home, with a resulting adverse effect on our revenues.
If federal or state tax laws are changed to eliminate or reduce any of these income tax benefits or if personal income or property tax rates were to increase, the after-tax cost of homeownership could measurably increase and diminish consumer interest in buying a home, with a resulting adverse effect on our revenues. 15 Table of Contents Our Financial Services segment can be adversely affected by reduced demand for our homes. 100% of the residential mortgage loans made by our Financial Services segment in 2024 were made to buyers of homes we built.
Failures in health and safety performance on our worksites may result in penalties for non-compliance with relevant regulatory requirements in our subcontractors having difficulty attracting the workers they need and in a negative impact to our reputation. Products supplied to us and work done by subcontractors can expose us to risks that could adversely affect our business.
Failures in health and safety performance on our 13 Table of Contents worksites may result in penalties for non-compliance with relevant regulatory requirements and in our subcontractors having difficulty attracting the workers they need as well as in a negative impact to our reputation.
The U.S. regulatory environment surrounding information security and privacy is increasingly demanding. A significant theft, loss or fraudulent use of the personally identifiable information we maintain, or of our data, by cyber-criminals or otherwise could adversely impact our reputation and could result in significant costs, fines and litigation. International activities subject us to risks inherent in international operations.
A significant theft, loss or fraudulent use of the personally identifiable information we [or third parties] maintain, or of our data, by cyber-criminals or otherwise could adversely impact our reputation and could result in significant costs, fines and litigation.
In addition, the closure of or limitation on the use of significant shipping routes as a result of these conflicts may result in interruptions to the supply of certain key raw materials worldwide, thereby, among other things, 11 Table of Contents increasing their cost.
In addition, the closure of or limitation on the use of significant shipping routes as a result of these and related conflicts may result in interruptions to the supply of certain key raw materials that are used in products which we incorporate in the homes we build, increasing their cost.
Failure to maintain the security of personally identifiable information could adversely affect us . In connection with our business we collect and retain personally identifiable information (e.g., information regarding our customers, suppliers and employees), and our customers, suppliers and employees have an expectation that we will adequately protect that information.
In connection with our business we and the third parties we work with collect and retain personally identifiable information (e.g., information regarding our customers, suppliers and employees), and our customers, suppliers and employees have an expectation that we will adequately protect that information. The U.S. regulatory environment surrounding information security and privacy is increasingly demanding.
If market conditions were to deteriorate significantly in the future, we could again be required to make significant write-downs of the carrying value of our land inventory and incur costs relating to decisions not to exercise land purchase options. Our results of operations and financial condition may be adversely affected by public health issues, and resulting governmental actions.
If market conditions were to deteriorate significantly in the future, we could again be required to make significant write-downs of the carrying value of our land inventory and write-offs costs relating to decisions not to exercise land purchase options. Current and threatened international conflicts could affect demand for the homes we build.
Our insurance may not cover business interruptions or losses resulting from these events and our results of operations could be adversely affected by these events. If our homebuyers are not able to obtain suitable financing, that would reduce demand for our homes and our home sales revenues.
Our insurance may not cover business interruptions or losses resulting from these events and our results of operations could be adversely affected by these events.
For a number of years, a substantial portion of our access to capital has been through the issuance of senior notes, of which we have approximately $2.5 billion outstanding, net of debt issuance costs, as of November 30, 2023.
Historically, a substantial portion of our access to capital has been through the issuance of senior notes, of which we have approximately $2.0 billion outstanding, net of debt issuance costs, as of November 30, 2024. Among other things, we have often relied on proceeds of debt issuances to pay the principal of existing senior notes when they mature.
This increase in cost and limitation in coverage has also increased our self-insured retentions and decreased our total coverage. It is possible in the future that insurance would not be available at commercially reasonable rates, which may cause us to reduce or eliminate general liability insurance. Excessive health and safety incidents relating to our operations could be costly to us.
This increase in cost and limitation in coverage has also increased our self-insured retentions and decreased our total coverage. It is possible in the future that insurance would not be available at commercially reasonable rates. Even when insurance is available, the high cost of insurance has recently led us to self-insure against some risks .
We also can suffer damage to our reputation, and may be exposed to possible liability, if subcontractors fail to comply with applicable laws, including laws involving things that are not within our control. When we learn about possibly improper practices by subcontractors, we try to cause the subcontractors to discontinue them.
The cost of complying with our warranty obligations may be significant if we are unable to recover the cost of repairs from subcontractors, materials suppliers and insurers. We also can suffer damage to our reputation, and may be exposed to possible liability, if subcontractors fail to comply with applicable laws, including laws involving things that are not within our control.
Our businesses could be adversely affected by changes in laws, regulations, policies or interpretations or by our inability to comply with them without making significant changes in our businesses. 16 Table of Contents Governmental regulations regarding land use and environmental matters could increase the cost and limit the availability of our development and homebuilding projects and adversely affect our business or financial results.
Governmental regulations regarding land use and environmental matters could increase the cost and limit the availability of our development and homebuilding projects and adversely affect our business or financial results.
Governmental rulings that make us responsible for labor practices by our subcontractors could create substantial exposures for us in situations that are not within our control. Risk Related to Planned Spin-Off Our previously announced spin-off of some of our businesses may not occur within any particular time period or at all.
Governmental rulings that make us responsible for labor practices by our subcontractors could create substantial exposures for us in situations that are not within our control.
We rely on subcontractors to perform the actual construction of our homes, and in many cases, to select and obtain building materials. Despite our detailed specifications and quality control procedures, in some cases, subcontractors may use 12 Table of Contents improper construction processes or defective materials.
Despite our detailed specifications and quality control procedures, in some cases, subcontractors may use improper construction processes or defective materials. Defective products widely used by the homebuilding industry can result in the need to perform extensive repairs to large numbers of homes.
If a contagious disease causes significant negative impacts to economic conditions or consumer confidence, our results of operations, financial condition and cash flows could be materially adversely impacted. Current and threatened conflicts could affect demand for the homes we build. There currently are ongoing conflicts in Ukraine and Israel.
The extent to which public health issues impact our results will depend on future developments, which cannot be predicted. If a contagious disease causes significant negative impacts to economic conditions or consumer confidence, our results of operations, financial condition and cash flows could be materially adversely impacted.
While we do not acquire essential components of the homes we build from either of those countries and while as of November 30, 2023, neither of these conflicts has had a material direct impact on our consolidated financial performance, the conflicts are still ongoing, and there are many risks and uncertainties in relation to those conflicts that are outside of our control.
While we do not acquire essential components of the homes we build from either of those countries and while as of November 30, 2024, neither of these conflicts has had a material direct impact on our consolidated financial performance, those and other possible conflicts have already led and could lead to further market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions.
However, we may not always be able to do that, and even when we can, it may not avoid claims against us relating to work the subcontractors already performed. A reduced number of home sales would extend the time it takes us to recover land purchase and property development costs.
When we learn about possibly improper practices by subcontractors, we try to cause the subcontractors to discontinue them. However, we may not always be able to do that, and even when we can, it may not avoid claims against us relating to work the subcontractors already performed.
Other Risks We have substantial investments in real estate related funds and businesses in which we are a minority investor.
These broad market and industry factors could harm the market price of our Class A common stock and our Class B common stock, regardless of our actual operating performance . Other Risks We have substantial investments in real estate related funds and businesses in which we are a minority investor.
During fiscal 2022 and 2023, the housing market weakened throughout the country in response to the Federal Reserve’s aggressive increase in interest rates in an effort to curtail inflation. A number of our markets experienced significant market softening that required us to make substantial price reductions.
During fiscal 2024 and 2023, a number of our markets experienced significant softening that required us to make substantial price reductions in order to maintain a steady sales pace.
The tariffs that have been imposed or increased have impacted our construction costs and caused disruptions in our supply chains, and new or increased tariffs could result in further cost increases. These cost increases will either require us to increase prices or negatively impact our profit margins.
Any widespread imposition of new or increased tariffs could increase the cost of, and reduce the demand for, homes we build and any cost increases will either require us to increase prices or negatively impact our profit margins.
We incur many costs even before we begin to build homes in a community.
A reduced number of home sales would extend the time it takes us to recover land purchase and property development costs. We incur many costs even before we begin to build homes in a community.
Laws and regulations, and policies under or interpretations of existing laws and regulations, change frequently.
Laws and regulations, and policies under or interpretations of existing laws and regulations, change frequently. Our businesses could be adversely affected by changes in laws, regulations, policies or interpretations or by our inability to comply with them without making significant changes in our businesses.
At November 30, 2023, we had no borrowings under our Credit Facility.
In 2022 and 2023, the Federal Reserve steadily raised benchmark interest rates and the Federal Reserve did not begin reducing benchmark interest rates until well into 2024. At November 30, 2024, we had no borrowings under our Credit Facility.
We could be hurt if land banks are not able to raise necessary investor funds or if we are unable to create and maintain relationships with land banks.
We could be hurt if land banks are not able to raise investor funds needed to enable them to supplement land acquisitions by Millrose. We formed and intend to spin off Millrose to make it a recycling source of land acquisition funding.
Removed
Even with shifts in macroeconomic factors in the current fiscal year and adjusting to the recent inflationary environment, as a result of our production volume, an increase in deliveries, and by applying stringent cost controls, we were able to achieve satisfactory margins.
Added
Our strategies for our core homebuilding and mortgage finance businesses, and any related initiatives or actions, may not be successful.
Removed
However, declining demand for new homes as the year progressed often required us to reduce, rather than increase, prices. On the other hand, it is beginning to relieve supply shortages. We are taking steps that we expect will enable us to maintain acceptable operating margins despite the inability to raise prices.
Added
Inflation may also accompany higher interest rates, which could adversely impact potential buyers’ ability to obtain financing on favorable terms, thereby decreasing demand for our homes. We are taking steps that we hope will enable us to maintain acceptable operating margins in fiscal 2025.
Removed
The United States has experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and public perception of health risk. The COVID-19 pandemic caused the shutdown of large portions of our national economy.

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Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed1 unchanged
Biggest changeOur homebuilding, financial services and multifamily offices are located in the markets where we conduct 20 Table of Contents business, primarily in leased spaces. We believe that our existing facilities are adequate for our current and planned levels of operation.
Biggest changeOur homebuilding, financial services and multifamily offices are located in the markets where we conduct business, primarily in leased spaces. We believe that our existing facilities are adequate for our current and planned levels of operation. Because of the nature of our homebuilding operations, we hold significant amounts of property as inventory in connection with our homebuilding business.
Because of the nature of our homebuilding operations, we hold significant amounts of property as inventory in connection with our homebuilding business. We discuss these properties in the discussion of our homebuilding operations in Items 1 and 7 of this Report.
We discuss these properties in the discussion of our homebuilding operations in Items 1 and 7 of this Report.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+0 added−3 removed1 unchanged
Biggest changeThe following table provides information about our repurchases of common stock during the three months ended November 30, 2023: Period: Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Maximum Number of Shares that may yet be Purchased under the Plans or Programs (2) September 1 to September 30, 2023 1,020,797 $ 112.26 1,020,000 17,584,347 October 1 to October 31, 2023 980,000 $ 108.38 980,000 16,604,347 November 1 to November 30, 2023 1,000,468 $ 116.76 1,000,000 15,604,347 (1) Includes shares of Class A and Class B common stock withheld by us to cover withholding taxes due with market value approximating the amount of withholding taxes due.
Biggest changeOn January 14, 2025, our Board declared a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock, payable on February 12, 2025 to holders of record at the close of business on January 29, 2025. 24 Table of Contents The following table provides information about our repurchases of common stock during the three months ended November 30, 2024: Period: Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that may yet be Purchased under the Plans or Program (2) (In thousands) September 1 to September 30, 2024 86,700 $ 178.67 86,700 3,922,943 October 1 to October 31, 2024 2,244,133 $ 175.38 2,243,114 3,529,542 November 1 to November 30, 2024 673,230 $ 167.81 670,186 3,417,075 (1) Includes shares of Class A and Class B common stock withheld by us to cover withholding taxes due with market value approximating the amount of withholding taxes due.
Performance Graph The following graph compares the five-year cumulative total return of our Class A common stock with the Dow Jones U.S. Home Construction Index and the Dow Jones U.S. Total Market Index. The graph assumes $100 invested on November 30, 2018 in our Class A common stock, the Dow Jones U.S. Home Construction Index and the Dow Jones U.S.
Performance Graph The following graph compares the five-year cumulative total return of our Class A common stock with the Dow Jones U.S. Home Construction Index and the Dow Jones U.S. Total Market Index. The graph assumes $100 invested on November 30, 2019 in our Class A common stock, the Dow Jones U.S. Home Construction Index and the Dow Jones U.S.
Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date. 21 Table of Contents The information required by Item 201(d) of Regulation S-K relating to equity compensation plans is provided in Item 12 of this Report.
Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date. The information required by Item 201(d) of Regulation S-K relating to equity compensation plans is provided in Item 12 of this Report.
This authorization was in addition to what was remaining of our October 2021 stock repurchase program. Subsequent to November 30, 2023, our Board of Directors authorized an increase to our stock repurchase program to enable us to repurchase up to an additional $5 billion in value of our outstanding Class A or Class B common stock.
(2) In January 2024, our Board authorized an increase to our stock repurchase program to enable us to repurchase up to an additional $5.0 billion in value of our outstanding Class A or Class B common stock. This authorization was in additions to what was remaining of our March 2022 stock repurchase program.
As of December 31, 2023, the last reported sale price of our Class A and Class B common stock on the NYSE was $149.04 and $134.05, respectively. As of December 31, 2023, there were approximately 1,518 and 803 holders of record of our Class A and Class B common stock, respectively.
As of December 31, 2024, the last reported sale price of our Class A and Class B common stock on the NYSE was $136.37 and $132.15, respectively. As of December 31, 2024, there were approximately 2,326 and 855 holders of record of our Class A and Class B common stock, respectively.
Total Market Index, and the reinvestment of all dividends. 2018 2019 2020 2021 2022 2023 Lennar Corporation $ 100 140 179 251 213 314 Dow Jones U.S. Home Construction Index $ 100 146 178 250 203 315 Dow Jones U.S. Total Market Index $ 100 102 120 153 135 153 Item 6. Reserved.
Total Market Index, and the reinvestment of all dividends. 25 Table of Contents 2019 2020 2021 2022 2023 2024 Lennar Corporation $ 100 128 180 153 226 312 Dow Jones U.S. Home Construction Index $ 100 124 169 138 200 286 Dow Jones U.S. Total Market Index $ 100 119 151 134 152 204 Item 6. Reserved.
Removed
On January 9, 2024, our Board of Directors increased our annual dividend to $2.00 per share from $1.50 per share, resulting in a quarterly cash dividend of $0.50 per share on both our Class A and Class B common stock.
Removed
The dividend is payable on February 7, 2024 to holders of record at the close of business on January 24, 2024.
Removed
(2) In March 2022, our Board of Directors approved an authorization for us to repurchase up to the lesser of $2.0 billion in value, or 30 million in shares, of our outstanding Class A or Class B common stock. The repurchase authorization has no expiration date.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

113 edited+45 added−37 removed92 unchanged
Biggest changeFinancial information relating to our operations was as follows: Year ended November 30, 2023 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total Revenues: Sales of homes $ 32,459,129 — — — — 32,459,129 Sales of land 109,963 — — — — 109,963 Other revenues 91,895 976,859 573,485 22,035 — 1,664,274 Total revenues 32,660,987 976,859 573,485 22,035 — 34,233,366 Costs and expenses: Costs of homes sold 24,900,470 — — — — 24,900,470 Costs of land sold 92,142 — — — — 92,142 Selling, general and administrative 2,231,033 — — — — 2,231,033 Other costs and expenses — 467,398 573,658 27,681 — 1,068,737 Total costs and expenses 27,223,645 467,398 573,658 27,681 — 28,292,382 Equity in losses from unconsolidated entities (3,886) — (52,073) (88,651) — (144,610) Other income (expense), net and other gains (losses) 94,251 — 1,595 (65,329) — 30,517 Lennar Other unrealized losses from technology investments — — — (50,162) — (50,162) Operating earnings (loss) 5,527,707 509,461 (50,651) (209,788) — 5,776,729 Corporate general and administrative expenses — — — — 501,338 501,338 Charitable foundation contribution — — — — 73,087 73,087 Earnings (loss) before income taxes $ 5,527,707 509,461 (50,651) (209,788) (574,425) 5,202,304 24 Table of Contents Year ended November 30, 2022 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total Revenues: Sales of homes $ 31,778,885 — — — — 31,778,885 Sales of land 143,041 — — — — 143,041 Other revenues (1) 29,409 809,680 865,603 44,392 — 1,749,084 Total revenues 31,951,335 809,680 865,603 44,392 — 33,671,010 Costs and expenses: Costs of homes sold 23,025,467 — — — — 23,025,467 Costs of land sold 171,589 — — — — 171,589 Selling, general and administrative 1,964,243 — — — — 1,964,243 Other costs and expenses — 426,378 848,931 32,258 — 1,307,567 Total costs and expenses 25,161,299 426,378 848,931 32,258 — 26,468,866 Equity in earnings (loss) from unconsolidated entities (17,235) — 52,603 (71,669) — (36,301) Other income (expense), net and other gains (losses) 4,516 — 218 (20,020) — (15,286) Lennar Other unrealized losses from technology investments — — — (655,094) — (655,094) Operating earnings (loss) 6,777,317 383,302 69,493 (734,649) — 6,495,463 Corporate general and administrative expenses — — — — 414,498 414,498 Charitable foundation contribution — — — — 66,399 66,399 Earnings (loss) before income taxes $ 6,777,317 383,302 69,493 (734,649) (480,897) 6,014,566 (1) During the year ended November 30, 2022 , other revenues in our Multifamily segment included land sales to unconsolidated entities of $237.5 million . 2023 versus 2022 Revenues from home sales increased 2% in the year ended November 30, 2023 to $32.5 billion from $31.8 billion in the year ended November 30, 2022.
Biggest changeFinancial information relating to our operations was as follows: Year ended November 30, 2024 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total Revenues: Sales of homes $ 33,778,149 — — — — 33,778,149 Sales of land 93,384 — — — — 93,384 Other revenues 34,893 1,109,263 411,537 14,226 — 1,569,919 Total revenues 33,906,426 1,109,263 411,537 14,226 — 35,441,452 Costs and expenses: Costs of homes sold 26,255,353 — — — — 26,255,353 Costs of land sold 73,802 — — — — 73,802 Selling, general and administrative 2,480,309 — — — — 2,480,309 Other costs and expenses — 532,079 521,455 79,495 — 1,133,029 Total costs and expenses 28,809,464 532,079 521,455 79,495 — 29,942,493 Equity in earnings (losses) from unconsolidated entities 66,448 — 150,753 (53,102) — 164,099 Other income, net and other gains 178,842 — 1,800 45,224 — 225,866 Lennar Other unrealized gains from technology investments — — — 25,180 — 25,180 Operating earnings (loss) 5,342,252 577,184 42,635 (47,967) — 5,914,104 Corporate general and administrative expenses — — — — 648,986 648,986 Charitable foundation contribution — — — — 80,210 80,210 Earnings (loss) before income taxes $ 5,342,252 577,184 42,635 (47,967) (729,196) 5,184,908 28 Table of Contents Year ended November 30, 2023 (In thousands) Homebuilding Financial Services Multifamily Lennar Other Corporate Total Revenues: Sales of homes $ 32,459,129 — — — — 32,459,129 Sales of land 109,963 — — — — 109,963 Other revenues 91,895 976,859 573,485 22,035 — 1,664,274 Total revenues 32,660,987 976,859 573,485 22,035 — 34,233,366 Costs and expenses: Costs of homes sold 24,900,470 — — — — 24,900,470 Costs of land sold 92,142 — — — — 92,142 Selling, general and administrative 2,231,033 — — — — 2,231,033 Other costs and expenses — 467,398 573,658 27,681 — 1,068,737 Total costs and expenses 27,223,645 467,398 573,658 27,681 — 28,292,382 Equity in losses from unconsolidated entities (3,886) — (52,073) (88,651) — (144,610) Other income (expense), net and other gains (losses) 94,251 — 1,595 (65,329) — 30,517 Lennar Other unrealized losses from technology investments — — — (50,162) — (50,162) Operating earnings (loss) 5,527,707 509,461 (50,651) (209,788) — 5,776,729 Corporate general and administrative expenses — — — — 501,338 501,338 Charitable foundation contribution — — — — 73,087 73,087 Earnings (loss) before income taxes $ 5,527,707 509,461 (50,651) (209,788) (574,425) 5,202,304 2024 versus 2023 Revenues from home sales increased 4% in the year ended November 30, 2024 to $33.8 billion from $32.5 billion in the year ended November 30, 2023.
In accordance with ASC Topic 350, Intangibles-Goodwill and Other ("ASC 350"), we evaluate goodwill for potential impairment on at least an annual basis. We have the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value.
In accordance with ASC Topic 350, Intangibles-Goodwill and Other , we evaluate goodwill for potential impairment on at least an annual basis. We have the option to perform a qualitative or quantitative assessment to determine whether the fair value of a reporting unit exceeds its carrying value.
During 2023, our cash used in financing activities was primarily due to the (1) redemption of $378 million aggregate principal amount of our 4.875% senior notes due December 2023, (2) redemption of $425 million aggregate principal amount of our 5.875% senior notes due November 2024, (3) $296 million combined of partial repurchase of our 4.500% senior notes due 2024 and 4.75% senior notes due 2027, (4) $105 million principal payments on notes payable and other borrowings, (5) repurchase of our common stock for $1.2 billion, which included $1.1 billion of repurchases of our stock under our repurchase program and $73 million of repurchases related to our equity compensation plan, (6) $431 million of dividend payments, and (7) $381 million of net payments from liabilities related to consolidated inventory not owned due to land sales to land banks, net of takedowns.
During 2023, our cash used in financing activities was primarily due to the (1) redemption of $378 million aggregate principal amount of our 4.875% senior notes due December 2023, (2) redemption of $425 million aggregate principal amount of our 5.875% senior notes due November 2024, (3) $296 million combined of partial repurchase of our 4.500% senior notes due 2024 and 4.75% senior notes due 2027, (4) $105 million principal payment on notes payable and other borrowings, (5) repurchase of our common stock for $1.2 billion, which included $1.1 billion of repurchase of our stock under our repurchase program and $73 million of repurchases related to our equity compensation plan, (6) $431 million of dividend payments, and (7) $381 million of net payments from liabilities related to consolidated inventory not owned due to land sales to land banks.
We record our investments in these entities in our consolidated balance sheets as Investments in Unconsolidated Entities and our pro-rata share of the entities’ earnings or losses in our consolidated statements of operations as Equity in Earnings (Loss) from Unconsolidated Entities within each of the respective segments.
We record our investments in these entities in our consolidated balance sheets as Investments in Unconsolidated Entities and our pro-rata share of the entities’ earnings or losses in our consolidated statements of operations as equity in earnings (losses) from unconsolidated entities within each of the respective segments.
("Sonder") and Sunnova Energy International, Inc. ("Sunnova"), which are held at market and will therefore change depending on the fair value of our shareholdings in those entities on the last day of each quarter.
("Sonder") and Sunnova Energy International, Inc. ("Sunnova"), which are held at market and the carrying value of which will therefore change depending on the fair value of our shareholdings in those entities on the last day of each quarter.
The decrease in the average sales price of homes delivered in Georgia, Indiana, Minnesota, North Carolina and Virginia was primarily due to pricing to market and product mix. The increase in the average sales price of homes delivered in Illinois, Maryland and Tennessee was primarily due to product mix.
The decrease in the average sales price of homes delivered in Georgia, Indiana, Minnesota, North Carolina, South Carolina, Tennessee and Virginia was primarily due to pricing to market and product mix. The increase in the average sales price of homes delivered in Illinois and Maryland was primarily due to product mix.
Included in the following tables as part of “Obligors” together with Lennar Corporation are subsidiary entities that are not finance company subsidiaries or foreign subsidiaries and were guaranteeing the senior notes because at November 30, 2023 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 4 of the Notes to Consolidated Financial Statements.
Included in the following tables as part of “Obligors” together with Lennar Corporation are subsidiary entities that are not finance company subsidiaries or foreign subsidiaries and were guaranteeing the senior notes because at November 30, 2024 they were guaranteeing Lennar Corporation's letter of credit facilities and its Credit Facility, disclosed in Note 4 of the Notes to Consolidated Financial Statements.
We believe all of the joint ventures were in compliance with their debt covenants at November 30, 2023. The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of November 30, 2023. It does not represent estimates of future cash payments that will be made to reduce debt balances.
We believe all of the joint ventures were in compliance with their debt covenants at November 30, 2024. The following table summarizes the principal maturities of our Multifamily unconsolidated entities debt as per current debt arrangements as of November 30, 2024. It does not represent estimates of future cash payments that will be made to reduce debt balances.
We review changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on our CMBS. Based on management’s assessment, no impairment charges were recorded during the years ended November 30, 2023 and 2022. We classify these securities as held-for-sale at November 30, 2023 and 2022.
We review changes in estimated cash flows periodically to determine if an other-than-temporary impairment has occurred on our CMBS. Based on management’s assessment, no impairment charges were recorded during the years ended November 30, 2024 and 2023. We classify these securities as held-for-sale at November 30, 2024 and 2023.
Details of each as of and during the year ended November 30, 2023 are included in Note 3 of the Notes to Consolidated Financial Statements. We regularly monitor the results of our Multifamily unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
Details of each as of and during the year ended November 30, 2024 are included in Note 3 of the Notes to Consolidated Financial Statements. We regularly monitor the results of our Multifamily unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
The following table summarizes the principal maturities of our Homebuilding unconsolidated entities ("JVs") debt as per current debt arrangements as of November 30, 2023. It does not represent estimates of future cash payments that will be made to reduce debt balances.
The following table summarizes the principal maturities of our Homebuilding unconsolidated entities ("JVs") debt as per current debt arrangements as of November 30, 2024. It does not represent estimates of future cash payments that will be made to reduce debt balances.
At November 30, 2023, Homebuilding debt to total capital was lower compared to November 30, 2022, primarily as a result of an increase in stockholders' equity due to net earnings and a decrease in homebuilding debt due to debt paydowns and debt repurchases, partially offset by share repurchases.
At November 30, 2024, Homebuilding debt to total capital was lower compared to November 30, 2023, primarily as a result of an increase in stockholders' equity due to net earnings and a decrease in Homebuilding debt due to debt paydowns and debt repurchases, partially offset by share repurchases.
Homebuilding Texas: Revenues from home sales increased in 2023 compared to 2022, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered. The increase in the number of home deliveries was primarily due to an increase in the number of active communities.
Homebuilding Texas: Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries, which was partially offset by a decrease in the average sales price of homes delivered. The increase in the number of home deliveries was primarily due to an increase in the number of active communities.
The decrease in average sales price of homes delivered in the year ended November 30, 2023 compared to the same period last year was primarily due to pricing to market through an increased use of incentives and product mix.
The decrease in average sales price of homes delivered in the year ended November 30, 2024 compared to the same period last year was primarily due to pricing to market through an increased use of incentives and product mix.
Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and such differences may be material to our consolidated financial statements. Listed below are those policies and estimates that we believe are critical and require the use of significant judgment in their application.
Therefore, the determination of estimates requires the exercise of judgment. Actual results could differ from those estimates, and such differences may be material to our 43 Table of Contents consolidated financial statements. Listed below are those policies and estimates that we believe are critical and require the use of significant judgment in their application.
In connection with some of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.
In connection with some 36 Table of Contents of our non-homebuilding businesses, we are also considering other types of transactions such as sales, restructurings, joint ventures, spin-offs or initial public offerings as we continue to move back towards being a pure play homebuilding company.
As of the end of each fiscal quarter, we are also required to maintain either (1) liquidity in an amount equal 33 Table of Contents to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio equal to or greater than 1.50:1.00 for the last twelve months then ended.
As of the end of each fiscal quarter, we are also required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio equal to or greater than 1.50:1.00 for the last twelve months then ended.
This was partially offset by a decrease in accounts payable and other liabilities of $626 million, primarily due to the payment of income taxes, an increase in receivables of $329 million, an increase in deposits and pre-acquisition costs on real estate of $296 million as we increased the percentage of controlled homesites, and an increase in loans held-for-sale of $367 million primarily related to the sale of loans originated by our Financial Services segment.
This was partially offset by a decrease in accounts payable and other liabilities $626 million, primarily due to the payment of income taxes, an increase in receivables of $329 million, an increase in deposits and preacquisition costs on real estate of $296 million as we increased the percentage of controlled homesites, and an increase in loan held-for-sale of $367 million primarily related to the sale of loans originated by our Financial Services segment.
These transactions may include the issuance of 32 Table of Contents additional indebtedness, the repurchase of our outstanding indebtedness, the repurchase of our common stock, the acquisition of homebuilders and other companies, the purchase or sale of assets or lines of business, the issuance of common stock or securities convertible into shares of common stock, and/or the pursuit of other financing alternatives.
These transactions may include the issuance of additional indebtedness, the repurchase of our outstanding indebtedness, the repurchase of our common stock, the acquisition of homebuilders and other companies, the purchase or sale of assets or lines of business, the issuance of common stock or securities convertible into shares of common stock, and/or the pursuit of other financing alternatives.
During 2023, our cash used in investing activities was primarily due to cash contributions of $201 million to unconsolidated entities, 31 Table of Contents which primarily included (1) $94 million to Homebuilding unconsolidated entities, (2) $81 million to Lennar Other unconsolidated entities, and (3) $27 million to Multifamily unconsolidated entities.
During 2023, our cash used in investing activities was primarily due to cash contributions of $201 million to unconsolidated entities, which primarily included (1) $94 million to Homebuilding unconsolidated entities, (2) $81 million to Lennar Other unconsolidated entities, and (3) $27 million to Multifamily unconsolidated entities.
Goodwill We recorded a significant amount of goodwill in connection with the 2018 acquisition of CalAtlantic. We record goodwill associated with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net 39 Table of Contents tangible and identifiable assets acquired.
Goodwill We recorded a significant amount of goodwill in connection with the 2018 acquisition of CalAtlantic. We record goodwill associated with acquisitions of businesses when the purchase price of the business exceeds the fair value of the net tangible and identifiable assets acquired.
The Multifamily segment manages and has investments in LMV I, LMV II and Canada Pension Plan Investments Fund, which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily rental properties.
The Multifamily segment manages and has investments in LMV I, LMV II and Canada Pension Plan Investments Fund, which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily assets.
The accounting policy relating to the use of the equity method of accounting is a critical accounting policy due to the judgment required in determining whether the entity is a VIE or a voting interest entity and then whether we are the primary beneficiary or have control or significant influence.
The accounting policy relating to the use of the equity method of accounting is a critical accounting policy due to the judgment required in determining whether the entity is a variable interest entity ("VIE") or a voting interest entity and then whether we are the primary beneficiary or have 45 Table of Contents control or significant influence.
The credit agreement also provides that up to $500 million in commitments may be used for letters of credit. As of both November 30, 2023 and 2022, we had no outstanding borrowings under the Credit Facility. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.
The credit agreement also provides that up to $477.5 million in commitments may be used for letters of credit. As of both November 30, 2024 and 2023, we had no outstanding borrowings under the Credit Facility. In addition to the Credit Facility, we have other letter of credit facilities with different financial institutions.
These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and were recorded as equity in earnings (loss) in the consolidated statement of operations. Our investment in the Rialto funds totaled $148.7 million and $185.1 million as of November 30, 2023 and 2022, respectively.
These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and were recorded as equity in earnings (losses) in the consolidated statement of operations. Our investment in the Rialto funds totaled $140.1 million and $148.7 million as of November 30, 2024 and 2023, respectively.
During the year ended November 30, 2023, our homebuilding operating earnings included $141.2 million of interest income due to an increase in cash balances and higher interest rates, which was partially offset by an impairment of $36.8 million of an investment in a joint venture.
During the years ended November 30, 2024 and 2023, our homebuilding operating earnings included $164.8 million and $141.2 million of interest income, respectively, due to an increase in cash balances and higher interest rates. During the year ended November 30, 2023, this was partially offset by an impairment of $36.8 million of an investment in a joint venture.
We believe that we were in compliance with our debt covenants at November 30, 2023.
We believe that we were in compliance with our debt covenants at November 30, 2024.
We believe that substantially all of the joint ventures were in compliance with their debt covenants at November 30, 2023, except for one joint venture that had an other-than-temporary impairment which is included in Note 1 of the Notes to Consolidated Financial Statements.
We believe that substantially all of the joint ventures were in compliance with their debt covenants at November 30, 2024, except for the other-than-temporary impairment which is included in Note 1 of the Notes to Consolidated Financial Statements.
The breakout of the Multifamily segment's equity investments in unconsolidated entities and the development activities by stage were as follows: (Dollars in thousands) November 30, 2023 Under construction/owned 16 Partially completed and leasing 8 Completed and operating 58 Total unconsolidated joint ventures 82 Total development costs $ 9,883,073 As of November 30, 2023, our Multifamily segment also had a pipeline of potential future projects, which were under contract or had letters of intent, totaling approximately $6.2 billion in anticipated development costs across a number of states that will be developed primarily by unconsolidated entities. 30 Table of Contents Lennar Other Segment Our Lennar Other segment includes fund investments we retained subsequent to our sale of the Rialto investment and asset management platform as well as strategic investments in technology companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies.
The breakout of the Multifamily segment's equity investments in unconsolidated entities and the development activities by stage were as follows: (Dollars in thousands) At November 30, 2024 Under construction/owned 8 Partially completed and leasing 11 Completed and operating 31 Total unconsolidated joint ventures 50 Total development costs $ 6,931,432 As of November 30, 2024, our Multifamily segment also had a pipeline of potential future projects, which were under contract or had letters of intent, totaling approximately $6.5 billion in anticipated development costs across a number of states that will be developed primarily by unconsolidated entities. 34 Table of Contents Lennar Other Segment Our Lennar Other segment includes fund investments we retained subsequent to our sale of the Rialto investment and asset management platform as well as strategic investments in technology companies that are looking to improve the homebuilding and financial services industries to better serve homebuyers and homeowners and increase efficiencies.
A series of operating losses of an investee or other factors may indicate that a decrease in the fair value of our investment in the unconsolidated entity below its carrying amount has occurred which is other-than-temporary.
A series of operating losses of an investee or other factors may indicate that a decrease in the fair value of our investment in the unconsolidated entity below its carrying amount has occurred which is other-than-temporary. The amount of impairment recognized is the excess of the investment’s carrying amount over its estimated fair value.
Homebuilding West: Revenues from home sales decreased in 2023 compared to 2022, primarily due to a decrease in the average sales price of homes delivered in all the states in the segment which was partially offset by an increase in the number of home deliveries in all the states in the segment except in Colorado, Nevada, Utah and Washington.
Homebuilding West: Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries in all the states in the segment except in Colorado, which was partially offset by a decrease in the average sales price of homes delivered in Arizona, Colorado and Washington.
At November 30, 2023, we had $6.3 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under our $2.6 billion revolving credit facility, thereby approximately $8.9 billion of available capacity. Operating Cash Flow Activities During 2023 and 2022, cash provided by operating activities totaled $5.2 billion and $3.3 billion, respectively.
At November 30, 2024, we had $4.7 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under our $2.9 billion Credit Facility, thereby approximately $7.6 billion of available capacity. Operating Cash Flow Activities During 2024 and 2023, cash provided by operating activities totaled $2.4 billion and $5.2 billion, respectively.
As of November 30, 2023 and 2022, our balance sheet had $657.9 million and $788.5 million, respectively, of assets in the Lennar Other segment, which included investments in unconsolidated entities of $276.2 million and $316.5 million, respectively. We have investments in Blend Labs, Inc. ("Blend Labs"), Hippo Holdings, Inc. ("Hippo"), Opendoor Technologies, Inc. ("Opendoor"), SmartRent, Inc. ("SmartRent"), Sonder Holdings, Inc.
As of November 30, 2024 and 2023, our balance sheet had $894.9 million and $657.9 million, respectively, of assets in the Lennar Other segment, which included investments in unconsolidated entities of $379.4 million and $276.2 million, respectively. We have investments in Blend Labs, Inc. ("Blend Labs"), Hippo Holdings, Inc. ("Hippo"), Opendoor Technologies, Inc. ("Opendoor"), SmartRent, Inc. ("SmartRent"), Sonder Holdings, Inc.
Details of each as of and during the year ended November 30, 2023 are included below: November 30, 2023 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 193,829 267,874 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,218,619 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 368,170 Lennar's remaining commitments (1) 3,635 12,830 Distributions to Lennar during the year ended November 30, 2023 — — (1) While there are remaining commitments with LMV I, there are no plans for additional capital calls.
Details of each as of and during the year ended November 30, 2024 are included below: November 30, 2024 (In thousands) LMV I LMV II Lennar's carrying value of investments $ 126,784 228,496 Equity commitments 2,204,016 1,257,700 Equity commitments called 2,154,328 1,218,619 Lennar's equity commitments 504,016 381,000 Lennar's equity commitments called 500,381 368,170 Lennar's remaining commitments (1) 3,635 12,830 Distributions to Lennar 199,519 12,820 (1) While there are remaining commitments with LMV I and LMV II, there are no plans for additional capital calls.
The average sales price of homes delivered was $446,000 in the year ended November 30, 2023, compared to $480,000 in the year ended November 30, 2022.
The average sales price of homes delivered was $423,000 in the year ended November 30, 2024, compared to $446,000 in the year ended November 30, 2023.
Gross margins on home sales were $7.6 billion, or 23.3%, in the year ended November 30, 2023, compared to $8.8 billion, or 27.5%, in the year ended November 30, 2022.
Gross margins on home sales were $7.5 billion, or 22.3%, in the year ended November 30, 2024, compared to $7.6 billion, or 23.3%, in the year ended November 30, 2023.
Financial Condition and Capital Resources At November 30, 2023, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $6.6 billion, compared to $4.8 billion at November 30, 2022.
Financial Condition and Capital Resources At November 30, 2024, we had cash and cash equivalents and restricted cash related to our homebuilding, financial services, multifamily and other operations of $5.0 billion, compared to $6.6 billion at November 30, 2023.
Revenues were higher primarily due to a 10% increase in the number of home deliveries, partially offset by a 7% decrease in the average sales price of homes delivered. New home deliveries increased to 73,087 homes in the year ended November 30, 2023 from 66,399 homes in the year ended November 30, 2022.
Revenues were higher primarily due to a 10% increase in the number of home deliveries, partially offset by a 5% decrease in the average sales price of homes delivered. New home deliveries increased to 80,210 homes in the year ended November 30, 2024 from 73,087 homes in the year ended November 30, 2023.
Selling, general and administrative expenses were $2.2 billion in the year ended November 30, 2023, compared to $2.0 billion in the year ended November 30, 2022.
Selling, general and administrative expenses were $2.5 billion in the year ended November 30, 2024, compared to $2.2 billion in the year ended November 30, 2023.
In conducting our review for indicators of impairment on a community level, we evaluate, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales, and the estimated fair value of the land itself.
In conducting our review for indicators of impairment on a community level, we evaluate, among other things, the margins on homes that have been delivered, margins on homes under sales contracts in backlog, projected margins with regard to future home sales over the life of the community, projected margins with regard to future land sales, and the estimated fair value of the land itself. 44 Table of Contents We estimate the fair value of our communities using a discounted cash flow model.
The maximum available borrowings on our Credit Facility were as follows: (In thousands) November 30, 2023 Commitments - maturing in April 2024 $ 350,000 Commitments - maturing in May 2027 2,225,000 Total commitments $ 2,575,000 Accordion feature 425,000 Total maximum borrowings capacity $ 3,000,000 The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes.
The maximum available borrowings on our Credit Facility were as follows: (In thousands) At November 30, 2024 Commitments - maturing in May 2027 $ 225,000 Commitments - maturing in November 2029 2,650,000 Total commitments $ 2,875,000 Accordion feature 625,000 Total maximum borrowings capacity $ 3,500,000 The proceeds available under the Credit Facility, which are subject to specified conditions for borrowing, may be used for working capital and general corporate purposes.
During both the years ended November 30, 2023 and 2022, our Class A and Class B common stockholders received an aggregate per share annual dividend of $1.50.
During the years ended November 30, 2024 and 2023, our Class A and Class B common stockholders received an aggregate per share annual dividend of $2.00 and $1.50, respectively.
Sales Incentives (1): Average Sales Incentives Per Home Delivered Sales Incentives as a % of Revenues Years Ended November 30, 2023 2022 2023 2022 East $ 34,500 12,600 7.4 % 2.8 % Central 33,700 11,900 7.4 % 2.6 % Texas 56,000 23,000 16.5 % 6.6 % West 47,900 22,200 7.2 % 3.3 % Other 91,500 90,000 11.5 % 9.5 % Total $ 42,900 17,300 8.8 % 3.5 % (1) Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities.
Sales Incentives (1): Average Sales Incentives Per Home Delivered Sales Incentives as a % of Revenues Years Ended November 30, 2024 2023 2024 2023 East $ 53,000 33,800 11.6 % 7.2 % Central 41,500 34,800 9.4 % 7.7 % Texas 52,900 56,000 17.3 % 16.5 % West 47,600 47,900 7.1 % 7.2 % Other 71,300 91,500 12.4 % 11.5 % Total $ 48,800 42,900 10.3 % 8.8 % (1) Sales incentives relate to home deliveries during the period, excluding deliveries by unconsolidated entities.
At November 30, 2023, we had equity investments in 48 active Homebuilding and land unconsolidated entities (of which 5 had recourse debt, 15 had non-recourse debt and 28 had no debt), compared to 48 active Homebuilding and land unconsolidated entities at November 30, 2022.
At November 30, 2024, we had equity investments in 51 active Homebuilding and land unconsolidated entities (of which 5 had recourse debt, 14 had non-recourse debt and 32 had no debt), compared to 48 active Homebuilding and land unconsolidated entities at November 30, 2023.
Operating loss for the Lennar Other segment was $211.2 million in the year ended November 30, 2023, compared to an operating loss of $735.6 million in the year ended November 30, 2022.
Operating loss for the Lennar Other segment was $46.9 million in the year ended November 30, 2024, compared to an operating loss of $211.2 million in the year ended November 30, 2023.
For the year ended November 30, 2023, a decrease in revenues per square foot and an increase in costs per square foot primarily due to higher materials and labor costs, resulted in a decrease in gross margin percentage of home deliveries. In addition, land costs increased year over year.
For the year ended November 30, 2024, an increase in revenues per square foot and a decrease in costs per square foot resulted in an increase in gross margin percentage of home deliveries. In addition, land costs increased year over year.
LMF Commercial originated commercial loans as follows: Years Ended November 30, (Dollars in thousands) 2023 2022 Originations $ 466,043 740,345 Sold $ 430,707 715,933 Securitizations 10 6 Multifamily Segment We have been actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties.
LMF Commercial originated commercial loans as follows: Years Ended November 30, (Dollars in thousands) 2024 2023 Originations $ 568,520 466,043 Sold $ 522,647 430,707 Securitizations 13 10 Multifamily Segment We have been actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties.
At November 30, 2023, the Financial Services segment had warehouse facilities, all of which were 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: Maximum Aggregate Commitment (In thousands) Committed Amount Uncommitted Amount Total Residential facilities maturing: December 2023 (1) $ 500,000 — 500,000 April 2024 250,000 250,000 500,000 May 2024 (2) 1,500,000 — 1,500,000 June 2024 100,000 400,000 500,000 September 2024 100,000 100,000 200,000 Total residential facilities $ 2,450,000 750,000 3,200,000 LMF commercial facilities maturing: November 2023 (1) 100,000 — 100,000 December 2023 (3) 400,000 — 400,000 Total LMF commercial facilities $ 500,000 — 500,000 Total $ 3,700,000 (1) Subsequent to November 30, 2023, the maturity date of December 2023 was extended to March 2024 and the maturity date of November 2023 was extended to January 2024.
At November 30, 2024, the Financial Services segment had warehouse facilities, all of which were 364-day repurchase facilities and were used to fund residential mortgages or commercial mortgages for LMF Commercial as follows: Maximum Aggregate Commitment (In thousands) Committed Amount Uncommitted Amount Total Residential facilities maturing: April 2025 $ 250,000 250,000 500,000 June 2025 1,400,000 — 1,400,000 August 2025 325,000 325,000 650,000 October 2025 100,000 100,000 200,000 December 2026 375,000 — 375,000 Total residential facilities $ 2,450,000 675,000 3,125,000 LMF commercial facilities maturing: December 2024 (1) 200,000 — 200,000 January 2025 100,000 — 100,000 Total LMF commercial facilities $ 300,000 — 300,000 Total $ 3,425,000 (1) Subsequent to November 30, 2024, the maturity date was extended to December 2025.
Subsequent to November 30, 2023, our Board of Directors authorized an increase to our stock repurchase program to enable us to repurchase up to an additional $5 billion in value of our outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date.
Changes in Capital Structure In January 2024, our Board authorized an increase to our stock repurchase program to enable us to repurchase up to an additional $5.0 billion in value of our outstanding Class A or Class B common stock. Repurchases are authorized to be made in open-market or private transactions. The repurchase authorization has no expiration date.
The following summarizes our required debt covenants and our actual levels or ratios with respect to those covenants as calculated per the Credit Agreement as of November 30, 2023: (Dollars in thousands) Covenant Level Level Achieved as of November 30, 2023 Minimum net worth test $ 13,499,906 20,145,031 Maximum leverage ratio 65.0% (13.0)% Liquidity test (1) 1.00 207.15 (1) We are only required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio of equal to or greater than 1.50:1.00 for the last twelve months then ended.
The following summarizes our required debt covenants and our actual levels or ratios with respect to those covenants as calculated per the Credit Agreement as of November 30, 2024: (Dollars in thousands) Covenant Level Level Achieved as of November 30, 2024 Minimum net worth test $ 10,000,000 21,384,969 Maximum leverage ratio 60.0% (6.6)% Liquidity test (1) 1.00 (139.00) (1) We are only required to maintain either (1) liquidity in an amount equal to or greater than 1.00x consolidated interest incurred for the last twelve months then ended or (2) an interest coverage ratio of equal to or greater than 1.50:1.00 for the last twelve months then ended.
At November 30, 2023, we had $1.9 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites and had posted $198.9 million of letters of credit in lieu of cash deposits under certain land and option contracts.
At November 30, 2024, we had $3.5 billion of non-refundable option deposits and pre-acquisition costs related to certain of these homesites and had posted $341.8 million of letters of credit in lieu of cash deposits under certain land and option contracts.
Investing Cash Flow Activities During 2023 and 2022, cash used in investing activities totaled $177 million and $128 million, respectively.
Investing Cash Flow Activities During 2024 and 2023, cash used in investing activities totaled $303 million and $177 million, respectively.
The amount of impairment recognized is the excess of the investment’s carrying amount over its estimated fair value. 41 Table of Contents The evaluation of our investment in unconsolidated entities for other-than-temporary impairment includes certain critical assumptions: (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.
The evaluation of our investment in unconsolidated entities for other-than-temporary impairment includes certain critical assumptions: (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.
We evaluate the historical performance of each of our communities as well as current trends in the market and economy impacting the community and its surrounding areas.
We evaluate the historical performance of each of our communities as well as current trends in the market and economy impacting the community and its surrounding areas. These trends are analyzed for each of the estimates listed above.
The decrease in the number of home deliveries in other states in the segment was primarily due to a decrease in the number of deliveries per active community due to the timing of opening and closing of communities.
The decrease in the number of home deliveries in Colorado was primarily due to a decrease in the number of active communities due to the timing of opening and closing of communities.
This was partially offset by distributions of capital from unconsolidated entities of $398 million, which primarily included (1) $79 million from Homebuilding unconsolidated entities, (2) $252 million from Multifamily unconsolidated entities, and (3) $67 million from our Lennar Other unconsolidated entities.
This was partially offset by distributions of capital from unconsolidated entities of $231 million, which primarily included (1) $117 million from Multifamily unconsolidated entities, (2) $61 million from Homebuilding unconsolidated entities, and (3) $54 million from our Lennar Other unconsolidated entities.
At November 30, 2023, we had open commitments amounting to $3.2 billion to sell MBS with varying settlement dates through February 2024 and open future contracts in the amount of $5.9 million with the settlement dates through March 2024.
At November 30, 2024, we had open commitments amounting to $3.8 billion to sell forward contracts, which include MBS and interest rate swaps, with varying settlement dates through February 2025 and open future contracts in the amount of $2.3 million with the varying settlement dates through March 2025.
The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services: Years Ended November 30, (Dollars in thousands) 2023 2022 Dollar value of mortgages originated $ 17,395,000 14,432,200 Number of mortgages originated 47,000 37,700 Mortgage capture rate of Lennar homebuyers 81% 72% Number of title and closing service transactions 74,900 68,800 At November 30, 2023 and 2022, the carrying value of Financial Services' commercial mortgage-backed securities ("CMBS") was $140.7 million and $143.3 million, respectively.
The following table sets forth selected financial and operational information related to the residential mortgage and title activities of our Financial Services segment: Years Ended November 30, (Dollars in thousands) 2024 2023 Dollar value of mortgages originated $ 19,845,000 17,395,000 Number of mortgages originated 54,600 47,000 Mortgage capture rate of Lennar homebuyers 84% 81% Number of title and closing service transactions 82,400 74,900 At November 30, 2024 and 2023, the carrying value of Financial Services' commercial mortgage-backed securities ("CMBS") was $135.6 million and $140.7 million, respectively.
These trends are analyzed for each of the estimates listed above. 40 Table of Contents Since the estimates and assumptions included in our cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead to us incurring additional impairment charges in the future.
Since the estimates and assumptions included in our cash flow models are based upon historical results and projected trends, they do not anticipate unexpected changes in market conditions or strategies that may lead to us incurring additional impairment charges in the future. Using all the available information, we calculate our best estimate of projected cash flows for each community.
A subsidiary's guarantee of Lennar senior notes will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), and a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed.
A subsidiary's guarantee of Lennar senior notes will be suspended at any time when it is not directly or indirectly guaranteeing at least $75 million principal amount of debt of Lennar Corporation (other than senior notes), and a subsidiary will be released from its guarantee and any other obligations it may have regarding the senior notes if all or substantially all its assets, or all of its capital stock, are sold or otherwise disposed. 39 Table of Contents Supplemental information for the Obligors, which excludes non-guarantor subsidiaries and intercompany transactions, at November 30, 2024 is included in the following tables.
Our outstanding letters of credit and surety bonds are described below: November 30, (In thousands) 2023 2022 Performance letters of credit $ 1,404,541 1,259,033 Financial letters of credit 417,976 503,659 Surety bonds 4,508,428 4,136,715 Anticipated future costs primarily for site improvements related to performance surety bonds 2,499,680 2,273,694 Our Homebuilding average debt outstanding and the average rates of interest were as follows: November 30, (Dollars in thousands) 2023 2022 Homebuilding average debt outstanding $ 3,688,363 4,705,892 Average interest rate 4.9% 4.7% Interest incurred $ 187,640 230,839 Under the Credit Facility agreement (the "Credit Agreement"), we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio.
Our outstanding letters of credit and surety bonds are described below: At November 30, (In thousands) 2024 2023 Performance letters of credit $ 1,668,061 1,404,541 Financial letters of credit 745,578 417,976 Surety bonds 5,140,432 4,508,428 Anticipated future costs primarily for site improvements related to performance surety bonds 2,766,088 2,499,680 37 Table of Contents Our Homebuilding average debt outstanding and the average rates of interest were as follows: At November 30, (Dollars in thousands) 2024 2023 Homebuilding average debt outstanding $ 2,449,576 3,688,363 Average interest rate 4.8% 4.9% Interest incurred $ 129,310 187,640 Under the Credit Facility agreement (the "Credit Agreement"), we are required to maintain a minimum consolidated tangible net worth, a maximum leverage ratio and either a liquidity or an interest coverage ratio.
The following table provides information about our repurchases of Class A and Class B common stock: Years Ended November 30, 2023 2022 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 7,499,660 2,500,340 9,628,203 1,339,797 Total purchase price $ 851,502 $ 248,835 $ 868,788 $ 98,613 Average price per share $ 113.54 $ 99.52 $ 90.23 $ 73.60 During the year ended November 30, 2023, treasury stock increased by 11.3 million shares primarily due to our repurchase of 10.0 million shares of Class A and Class B common stock through our stock repurchase program.
The following table provides information about our repurchases of Class A and Class B common stock: Years Ended November 30, 2024 2023 (Dollars in thousands, except price per share) Class A Class B Class A Class B Shares repurchased 11,942,725 1,612,501 7,499,660 2,500,340 Total purchase price $ 1,906,049 $ 243,860 $ 851,502 $ 248,835 Average price per share $ 159.60 $ 151.23 $ 113.54 $ 99.52 During the year ended November 30, 2024, treasury stock increased by 14.2 million shares primarily due to our repurchase of 13.6 million shares of Class A and Class B common stock through our stock repurchase program.
Operating earnings for our Financial Services segment were $507.1 million in the year ended November 30, 2023, compared to operating earnings of $381.9 million in the year ended November 30, 2022.The increase in operating earnings was primarily due to a higher profit per locked loan in our mortgage business as a result of higher margins, and higher lock volume because of an increase in capture rate and deliveries.
Operating earnings for our Financial Services segment were $574.2 million in the year ended November 30, 2024, compared to operating earnings of $507.1 million in the year ended November 30, 2023.The increase in operating earnings was primarily due to higher lock volume because of an increase in capture rate and deliveries.
Gross margins in the year ended November 30, 2023 decreased because of a decrease in average sales price, which was partially offset by a decrease in costs per square foot as we continued to focus on construction cost savings.
During the year ended November 30, 2024, gross margins decreased primarily because revenue per square foot decreased while land costs increased year over year, which was partially offset by a decrease in costs per square foot due to lower costs of materials as we continued to focus on construction cost savings.
Amounts due from and transactions with non-guarantor subsidiaries and related parties are separately disclosed: 35 Table of Contents As of November 30, (In thousands) 2023 2022 Due from non-guarantor subsidiaries $ 22,020,227 17,959,091 Equity method investments 986,508 1,090,831 Total assets 45,830,841 40,929,435 Total liabilities 9,181,456 10,455,359 (In thousands) Year Ended November 30, 2023 Total revenues $ 32,244,464 Operating earnings 5,389,794 Earnings before income taxes 4,825,548 Net earnings attributable to Lennar 3,669,944 Off-Balance Sheet Arrangements Homebuilding - Investments in Unconsolidated Entities We regularly monitor the results of our Homebuilding, Multifamily, and Lennar Other unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
Amounts due from and transactions with non-guarantor subsidiaries and related parties are separately disclosed: At November 30, (In thousands) 2024 2023 Due from non-guarantor subsidiaries $ 18,396,060 22,020,227 Equity method investments 1,078,635 986,508 Total assets 50,251,091 45,830,841 Total liabilities 10,067,424 9,181,456 (In thousands) Year Ended November 30, 2024 Total revenues $ 32,600,847 Operating earnings 5,025,356 Earnings before income taxes 4,312,161 Net earnings attributable to Lennar 3,294,043 Off-Balance Sheet Arrangements Homebuilding - Investments in Unconsolidated Entities We regularly monitor the results of our Homebuilding, Multifamily, and Lennar Other unconsolidated joint ventures and any trends that may affect their future liquidity or results of operations.
During 2022, our cash used in investing activities was primarily due to cash contributions of $447 million to unconsolidated entities, which primarily included (1) $307 million to Homebuilding unconsolidated entities, (2) $111 million to Lennar Other unconsolidated entities, and (3) $30 million to Multifamily unconsolidated entities.
During 2024, our cash used in investing activities was primarily due to cash contributions of $426 million to unconsolidated entities, which primarily included (1) $222 million to Homebuilding unconsolidated entities, (2) $182 million to Lennar Other 35 Table of Contents unconsolidated entities, and (3) $21 million to Multifamily unconsolidated entities.
Our Financial Services segment had a pipeline of loan applications in process of $3.3 billion at November 30, 2023. Loans in process for which interest rates were committed to the borrowers totaled approximately $2.1 billion as of 38 Table of Contents November 30, 2023. A significant portion of these commitments had a remaining period of 60 days or less.
Loans in process for which interest rates were committed to the borrowers totaled approximately $1.8 billion as of November 30, 2024. A significant portion of these commitments had a remaining period of 60 days or less.
Principal Maturities of Multifamily Unconsolidated JVs Debt by Period (In thousands) Total JV Debt 2024 2025 2026 Thereafter Other Debt without recourse to Lennar $ 4,909,744 2,052,566 1,409,911 882,136 565,131 — Debt issuance costs (19,477) — — — — (19,477) Total $ 4,890,267 2,052,566 1,409,911 882,136 565,131 (19,477) Lennar Other - Investments in Unconsolidated Entities As part of the sale of the Rialto investment and asset management platform, we retained the right to receive a portion of payments with regard to carried interests if certain funds meet specified performance thresholds.
Principal Maturities of Multifamily Unconsolidated JVs Debt by Period (In thousands) Total JV Debt 2025 2026 2027 Thereafter Other Debt without recourse to Lennar $ 2,922,010 1,120,389 841,057 777,565 182,999 — Debt issuance costs (16,097) — — — — (16,097) Total $ 2,905,913 1,120,389 841,057 777,565 182,999 (16,097) Lennar Other - Investments in Unconsolidated Entities As part of the sale of the Rialto investment and asset management platform, we retained the right to receive a portion of payments with regard to carried interests if certain funds meet specified performance thresholds.
Using all the available information, we calculate our best estimate of projected cash flows for each community. While many of the estimates are calculated based on historical and projected trends, all estimates are subjective and change from market to market and community to community as market and economic conditions change.
While many of the estimates are calculated based on historical and projected trends, all estimates are subjective and change from market to market and community to community as market and economic conditions change.
The decrease in the average sales price of homes delivered was primarily due to pricing to market. For the year ended November 30, 2023, a 28 Table of Contents decrease in revenues per square foot was partially offset by a decrease in costs per square foot, which resulted in a decrease in gross margin percentage of home deliveries.
The decrease in the average sales price of homes delivered was primarily due to pricing to market. For the year ended November 30, 2024, a decrease in revenues per square foot was partially offset by a decrease in costs per square foot. In addition, land costs increased year over year.
The following is a detail of Lennar Other unrealized losses from mark-to-market adjustments on our technology investments: Years Ended November 30, (In thousands) 2023 2022 Blend Labs (BLND) $ (130) (25,630) Hippo (HIPO) (19,210) (222,447) Opendoor (OPEN) 21,762 (265,276) SmartRent (SMRT) 5,914 (78,177) Sonder (SOND) (700) (2,339) Sunnova (NOVA) (57,798) (61,225) Lennar Other unrealized losses from technology investments $ (50,162) (655,094) At November 30, 2023 and 2022, Lennar Other owned commercial mortgage-backed securities ("CMBS") with carrying values of $38.0 million and $35.5 million, respectively.
The following is a detail of Lennar Other unrealized gains (losses) from mark-to-market adjustments on our technology investments: Years Ended November 30, (In thousands) 2024 2023 Blend Labs (BLND) $ 9,474 (130) Hippo (HIPO) 73,243 (19,210) Opendoor (OPEN) (12,587) 21,762 SmartRent (SMRT) (11,609) 5,914 Sonder (SOND) 15 (700) Sunnova (NOVA) (33,356) (57,798) Lennar Other unrealized gains (losses) from technology investments $ 25,180 (50,162) At November 30, 2024 and 2023, Lennar Other owned CMBS with carrying values of $40.6 million and $38.0 million, respectively.
Homebuilding debt to total capital and net Homebuilding debt to total capital were calculated as follows: November 30, (Dollars in thousands) 2023 2022 Homebuilding debt $ 2,816,482 4,047,294 Stockholders’ equity 26,580,664 24,100,500 Total capital $ 29,397,146 28,147,794 Homebuilding debt to total capital 9.6% 14.4% Homebuilding debt $ 2,816,482 4,047,294 Less: Homebuilding cash and cash equivalents 6,273,724 4,616,124 Net Homebuilding debt $ (3,457,242) (568,830) Net Homebuilding debt to total capital (1) (15.0)% (2.4)% (1) Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity).
Homebuilding debt to total capital and net Homebuilding debt to total capital were calculated as follows: At November 30, (Dollars in thousands) 2024 2023 Homebuilding debt $ 2,258,283 2,816,482 Stockholders’ equity 27,870,135 26,580,664 Total capital $ 30,128,418 29,397,146 Homebuilding debt to total capital 7.5% 9.6% Homebuilding debt $ 2,258,283 2,816,482 Less: Homebuilding cash and cash equivalents 4,662,643 6,273,724 Net Homebuilding debt $ (2,404,360) (3,457,242) Net Homebuilding debt to total capital (1) (9.4)% (15.0)% (1) Net homebuilding debt to total capital is a non-GAAP financial measure defined as net homebuilding debt (homebuilding debt less homebuilding cash and cash equivalents) divided by total capital (net homebuilding debt plus stockholders' equity).
Borrowings and collateral under the facilities were as follows: November 30, (In thousands) 2023 2022 Borrowings under the residential facilities $ 2,020,187 1,877,411 Collateral under the residential facilities 2,097,020 1,950,155 Borrowings under the LMF Commercial facilities 12,525 124,399 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.
The LMF Commercial facilities finance LMF Commercial loan originations and securitization activities and were secured by up to 80% interests in the originated commercial loans financed. 38 Table of Contents Borrowings and collateral under the facilities were as follows: At November 30, (In thousands) 2024 2023 Borrowings under the residential facilities $ 1,776,045 2,020,187 Collateral under the residential facilities 1,837,833 2,097,020 Borrowings under the LMF Commercial facilities 28,747 12,525 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.
This was partially offset by distributions of capital from unconsolidated entities of $100 million, which primarily included (1) $70 million from Homebuilding unconsolidated entities, and (2) $29 million from our Lennar Other unconsolidated entities.
This was partially offset by distributions of capital from unconsolidated entities of $100 million, which primarily included (1) $70 million from Homebuilding unconsolidated entities, and (2) $29 million from our Lennar Other unconsolidated entities. Financing Cash Flow Activities During 2024 and 2023, our cash used in financing activities totaled $3.7 billion and $3.2 billion, respectively.
However, more recently we have focused on creating and participating in funds that build multifamily properties with the intention of retaining them after they are completed. 29 Table of Contents The following table provides information related to our investment in the Multifamily segment: At November 30, (Dollars in thousands) 2023 2022 Multifamily investments in unconsolidated entities $ 599,852 648,126 Lennar's net investment in Multifamily 1,095,218 935,961 Number of operating properties/investments sold through joint ventures — 2 Lennar's share of gains on the sale of operating properties/investments — 43,308 The Multifamily segment manages and has investments in Multifamily Venture Fund I (the "LMV I") and Multifamily Venture Fund II LP (the "LMV II"), which are long-term multifamily development investment vehicles involved in the development, construction and ownership of class-A multifamily rental properties.
The following table provides information related to our investment in the Multifamily segment: At November 30, (Dollars in thousands) 2024 2023 Multifamily investments in unconsolidated entities $ 503,303 599,852 Lennar's net investment in Multifamily 1,116,295 1,095,218 Number of operating properties/investments sold through joint ventures 34 — Lennar's share of gains on the sale of operating properties/investments 219,148 — The Multifamily segment manages and has investments in Multifamily Venture Fund I (the "LMV I") and Multifamily Venture Fund II LP (the "LMV II"), which are long-term multifamily development investment vehicles involved in the 33 Table of Contents development, construction and ownership of class-A multifamily rental properties.
This was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois, Maryland and Tennessee. The increase in the number of home deliveries in Illinois, Indiana, Maryland, Minnesota, Tennessee and North Carolina was primarily due to an increase in the number of deliveries per active community.
Homebuilding Central: Revenues from home sales increased in 2024 compared to 2023, primarily due to an increase in the number of home deliveries in all the states in the segment, which was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in Illinois and Maryland.
We have announced an intention to spin off, subject to market conditions, our multifamily and single-family rental asset management businesses and some of our investment assets.
We have announced an intention to spin off, subject to market conditions, our multifamily and single-family rental asset management businesses and some of our investment assets. We are currently preparing to spin off (the “Millrose Spin-Off”) a wholly owned subsidiary for Lennar, Millrose Properties Inc.
This was partially offset by a decrease in the average sales price of homes delivered in all the states in the segment except in New Jersey and Pennsylvania. The increase in the number of home deliveries in Alabama, Florida, Pennsylvania and South Carolina was primarily due to an increase in the number of active communities.
Homebuilding East : Revenues from home sales decreased in 2024 compared to 2023, primarily due to a decrease in the average sales price of homes delivered in all the states in the segment except in New Jersey, which was partially offset by an increase in the number of home deliveries in all the states in the segment.
This was partially offset by a $1.7 billion increase in inventories due to strategic land purchases, land development and construction costs, $672 million increase in deposits and pre-acquisition costs on real estate as we increased the percentage of controlled homesites, and an increase in receivables of $422 million.
This was offset by an increase in inventories due to our growth strategy, strategic land purchases, land development and construction costs of $285 million, an increase in deposits and pre-acquisition costs on real estate of $1.6 billion as we increased the percentage of controlled homesites, and an increase in loans held-for-sale of $218 million primarily related to the sale of loans originated by our Financial Services segment.
As a percentage of revenues from home sales, selling, general and administrative expenses increased to 6.9% in the year ended November 30, 2023, from 6.2% in the year ended November 30, 2022, primarily due to an increase in the use of brokers due to current market conditions.
As a percentage of revenues from home sales, selling, general and administrative expenses increased to 7.3% in the year ended November 30, 2024, from 6.9% in the year ended November 30, 2023, primarily due to an increase in professional expenses, insurance costs and digital marketing and advertising costs to generate more direct sales.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeInformation Regarding Interest Rate Sensitivity Principal (Notional) Amount by Expected Maturity and Average Interest Rate November 30, 2023 Years Ending November 30, Fair Value at November 30, (Dollars in millions) 2024 2025 2026 2027 2028 Thereafter Total 2023 ASSETS Financial Services: Investments held-to-maturity: Fixed rate $ — — — — — 140.7 140.7 139.4 Average interest rate — — — — — 3.6 % 3.6 % — Loans held-for-investment, net: Fixed rate $ 1.2 1.3 1.3 1.4 1.4 46.1 52.7 52.7 Average interest rate 4.0 % 4.0 % 4.0 % 4.0 % 4.0 % 4.0 % 4.0 % — Variable rate $ — — — 0.1 0.1 2.5 2.7 2.7 Average interest rate — — — 4.9 % 4.9 % 4.9 % 4.9 % — LIABILITIES Homebuilding: Senior notes and other debts payable: Fixed rate $ 483.4 673.9 455.9 1,165.0 4.0 33.4 2,815.6 2,785.7 Average interest rate 4.5 % 4.7 % 5.1 % 4.8 % 3.0 % 5.9 % 4.8 % — Financial Services: Notes and other debts payable: Fixed rate $ — — — — — 131.1 131.1 131.7 Average interest rate — — — — — 3.4 % 3.4 % — Variable rate $ 2,032.7 — — — — — 2,032.7 2,032.7 Average interest rate 7.1 % — — — — — 7.1 % — Multifamily: Notes and other debts payable: Fixed rate $ 0.2 — — — — — 0.2 0.2 Average interest rate 0.0 % — — — — — 0.0 % — Variable rate $ 3.5 — — — — — 3.5 3.5 Average interest rate 3.6 % — — — — — 3.6 % — 43 Table of Contents
Biggest changeInformation Regarding Interest Rate Sensitivity Principal (Notional) Amount by Expected Maturity and Average Interest Rate November 30, 2024 Years Ending November 30, Fair Value at November 30, (Dollars in millions) 2025 2026 2027 2028 2029 Thereafter Total 2024 ASSETS Financial Services: Investments held-to-maturity: Fixed rate $ — — — — — 135.6 135.6 138.2 Average interest rate — — — — — 3.6 % 3.6 % — Loans held-for-investment, net: Fixed rate $ 8.3 1.3 1.4 1.4 1.5 44.7 58.6 58.7 Average interest rate 7.0 % 4.1 % 4.1 % 4.1 % 4.1 % 4.1 % 4.5 % — Variable rate $ — — — 0.1 0.1 2.1 2.3 2.3 Average interest rate — — — 4.8 % 4.8 % 4.8 % 4.8 % — LIABILITIES Homebuilding: Senior notes and other debts payable: Fixed rate $ 532.1 620.9 1,062.2 14.1 11.5 16.6 2,257.4 2,264.4 Average interest rate 4.5 % 5.1 % 4.8 % 2.1 % 7.5 % 6.4 % 4.8 % — Financial Services: Notes and other debts payable: Fixed rate $ — — — — — 126.2 126.2 126.7 Average interest rate — — — — — 3.4 % 3.4 % — Variable rate $ 1,801.0 3.8 — — — — 1,804.8 1,804.8 Average interest rate 6.2 % 5.9 % — — — — 6.2 % — 47 Table of Contents
For loans held-for-investment, net and investments held-to-maturity, senior notes and other debts payable and notes and other debts payable, the table presents principal cash flows and related weighted average effective interest rates by expected maturity dates and estimated fair values at November 30, 2023. Weighted average variable interest rates are based on the variable interest rates at November 30, 2023.
For loans held-for-investment, net and investments held-to-maturity, senior notes and other debts payable and notes and other debts payable, the table presents principal cash flows and related weighted average effective interest rates by expected maturity dates and estimated fair values at November 30, 2024. Weighted average variable interest rates are based on the variable interest rates at November 30, 2024.
In our Financial Services operations, we utilize mortgage backed securities forward commitments, option contracts and investor commitments to protect the value of rate-locked commitments and loans held-for-sale from fluctuations in mortgage-related interest rates.
In our Financial Services operations, we utilize mortgage backed securities forward commitments, option contracts and investor commitments to protect the value of rate-locked commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. 46 Table of Contents To mitigate interest risk associated with LMF Commercial's loans held-for-sale, we use derivative financial instruments to hedge our exposure to risk from the time a borrower locks a loan until the time the loan is securitized.
We also manage a portion of our credit exposure by buying protection within the CMBX and CDX markets. We do not enter into or hold derivatives for trading or speculative purposes. 42 Table of Contents The table below provides information at November 30, 2023 about our significant instruments that are sensitive to changes in interest rates.
We hedge our interest rate exposure through entering into interest rate swap futures. We also manage a portion of our credit exposure by buying protection within the CMBX and CDX markets. We do not enter into or hold derivatives for trading or speculative purposes.
Removed
To mitigate interest risk associated with LMF Commercial's loans held-for-sale, we use derivative financial instruments to hedge our exposure to risk from the time a borrower locks a loan until the time the loan is securitized. We hedge our interest rate exposure through entering into interest rate swap futures.
Added
The table below provides information at November 30, 2024 about our significant instruments that are sensitive to changes in interest rates.

Other LEN 10-K year-over-year comparisons