Homebuilding Operations - Homebuilding operations generated $32 billion in revenues, accounting for approximately 94% of consolidated revenues in fiscal 2025[11]. - New home deliveries reached 82,583 in fiscal 2025, an increase from 80,210 in fiscal 2024 and 73,087 in fiscal 2023[14]. - The average sales price of a Lennar home in fiscal 2025 was $391,000, down from $423,000 in fiscal 2024 and $445,000 in fiscal 2023[15]. - As of November 30, 2025, 98% of total homesites were controlled through options, up from 82% in the previous year[17]. - The backlog dollar value, including unconsolidated entities, was $5.2 billion at November 30, 2025, compared to $5.4 billion at the same time in 2024[29]. - The company experienced a cancellation rate of 14% in both 2025 and 2024 for homes under sales contracts[28]. - The company was actively building and marketing homes in 1,708 communities as of November 30, 2025, an increase from 1,447 communities in 2024[20]. - The company aims to maintain operating margins by deferring home sale price commitments until construction costs are finalized[13]. - The company is focused on a land-light operating model, enhancing flexibility and reducing capital intensity in its homebuilding operations[13]. Financial Services - In fiscal year 2025, the company originated approximately 55,900 residential mortgage loans totaling $20.0 billion, an increase from 54,600 loans totaling $19.8 billion in fiscal year 2024[34]. - The financial services subsidiaries provided loans to 84% of homebuyers who obtained mortgage financing in areas where the company offered services[33]. - As of November 30, 2025, the company had a total maximum borrowing capacity of $3.3 billion under its financial services warehouse facilities[35]. - The company utilizes derivative financial instruments to hedge interest rate exposure, particularly for loans held-for-sale, to mitigate risks associated with fluctuations in mortgage-related interest rates[315]. - The company’s Financial Services operations employ mortgage-backed securities forward commitments and option contracts to protect against interest rate fluctuations[314]. - Financial services fixed rate notes and other debts payable are valued at $123.1 million, with an average interest rate of 3.4%[320]. - Financial services variable rate debts total $1,667.2 million, with an average interest rate of 5.3%[320]. Multifamily Business - The Multifamily business has capitalized and developed 128 multifamily residential communities with approximately 39,300 rental units across 20 states[42]. - As of November 30, 2025, the Multifamily segment had a pipeline of 32 potential future developments totaling approximately $2.8 billion in anticipated development costs[43]. Strategic Investments - In February 2025, the company completed the spin-off of Millrose Properties, contributing $5.6 billion in land assets and $1.0 billion in cash[31]. - The company retained a minority interest after selling a majority interest in Quarterra Group, Inc for a strategic commitment of $1.0 billion[46]. - The book value of the company's investment in strategic technology investments was $581.8 million as of November 30, 2025[39]. Technology and Innovation - The company has been using new technology to automate portions of the mortgage loan origination process, improving customer experience and increasing digital closings[36]. Environmental Sustainability - The company is focused on creating environmentally sustainable products, incorporating features like Low-VOC paint, WaterSense® faucets, Low-E windows, and Energy Star® appliances in new homes[67][74]. - The company believes in the value of clean energy and actively seeks to integrate solar power into its home designs[68]. Regulatory and Market Risks - The company is subject to various local, state, and federal regulations that can increase construction costs and impact homebuilding activities, including requirements for energy-efficient materials and infrastructure commitments[60][61]. - The company’s primary market risk exposure relates to fluctuations in interest rates on investments, loans held-for-sale, and outstanding variable rate debt[312]. - The company’s compliance with the Dodd-Frank Act includes minimum standards for lender practices and limitations on certain fees in mortgage lending[64]. - The company’s operations are impacted by potential "slow growth" initiatives in various cities that could affect land availability for residential development[62]. Employment and Workforce - The company employed 12,532 individuals as of November 30, 2025, a decrease from 13,265 individuals in the previous year, with 10,182 in Homebuilding operations[73]. Health and Safety - The company is committed to health and safety, having hired a Chief Medical Officer to oversee safety protocols during the COVID-19 pandemic[71]. Financial Performance - Fixed rate investments held-to-maturity are valued at $132.9 million with an average interest rate of 3.6%[320]. - Homebuilding fixed rate senior notes and other debts payable total $2,380.5 million, with an average interest rate of 5.0%[320]. - Variable rate debts in homebuilding amount to $1,710.0 million, with an average interest rate of 5.2%[320].
Lennar(LEN_B) - 2025 Q4 - Annual Report