The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our unaudited condensed
consolidated financial statements and accompanying notes included under Item 1
of this Report and our audited consolidated financial statements and
accompanying notes included in our Annual Report on Form 10-K, for our fiscal
year ended November 30, 2019.
Some of the statements in this Management's Discussion and Analysis of Financial
Condition and Results of Operations, and elsewhere in this Quarterly Report on
Form 10-Q, are "forward-looking statements," within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
typically include the words "anticipate," "believe," "consider," "estimate,"
"expect," "forecast," "intend," "objective," "plan," "predict," "projection,"
"seek," "strategy," "target," "will" or other words of similar meaning.
Forward-looking statements contained herein may include opinions or beliefs
regarding market conditions and similar matters. In many instances, those
opinions and beliefs are based upon general observations by members of our
management, anecdotal evidence and our experience in the conduct of our
businesses, without specific investigation or analyses. Therefore, while they
reflect our view of the industries and markets in which we are involved, they
should not be viewed as reflecting verifiable views or views that are
necessarily shared by all who are involved in those industries or markets. These
statements concern expectations, beliefs, projections, plans and strategies,
anticipated events or trends and similar expressions concerning matters that are
not historical facts.
The 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 actual results and could cause actual results to differ significantly from
what is anticipated by our forward-looking statements. 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:
the potential negative impact to our business of the ongoing coronavirus
("COVID-19") pandemic, the duration, impact and severity of which is highly
uncertain; increases in operating costs, including costs related to construction
materials, labor, real estate taxes and insurance, and our inability to manage
our cost structure, both in our Homebuilding and Multifamily businesses; an
extended slowdown in the real estate markets across the nation, including a
slowdown in the market for single family homes or the multifamily rental market;
reduced availability of mortgage financing or increased interest rates; our
inability to successfully execute our strategies, including our land lighter
strategy and our strategy to monetize non-core assets; 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;
decreased demand for our homes or Multifamily rental properties; 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; our inability to pay down debt; whether government actions or other
factors related to COVID-19 force us to further delay or terminate our program
of repurchasing our stock; a decline in the value of our land inventories and
resulting write-downs of the carrying value of our real estate assets; the
failure of the participants in various joint ventures to honor their
commitments; difficulty obtaining land-use entitlements or construction
financing; natural disasters and other unforeseen events for which our insurance
does not provide adequate coverage; new laws or regulatory changes that
adversely affect the profitability of our businesses; our inability to refinance
our debt on terms that are acceptable to us; and changes in accounting
conventions that adversely affect our reported earnings.
Please see our Form 10-K for the fiscal year ended November 30, 2019, Part II,
Item 1A of this quarterly report on Form 10-Q and our other filings with the SEC
for a further discussion of these and other risks and uncertainties which could
affect our future results. We undertake no obligation, other than those imposed
by securities laws, to publicly revise any forward-looking statements to reflect
events or circumstances after the date of those statements or to reflect the
occurrence of anticipated or unanticipated events.
Outlook
Our third quarter was a solid quarter for Lennar, reflecting the robust state of
the housing market across the country. As a result of the COVID-19 pandemic, the
home has become more and more essential to the way we live and to the quality of
our lives. Inventories are limited and demand remains strong driven by low
interest rates and a customer focus on owning and controlling their lifestyle.
Our measured growth strategy in the current market is to focus on selling
current inventory, which improves our inventory turn, while being patient with
longer-term sales, which enables expected price appreciation to offset future
cost escalations to maximize margin.
As expected, our closings in the third quarter were limited by the production
pause we took in March, April and May as we assessed the impact of COVID-19 on
the housing market. We increased production as the market recovered and expect
this to generate increased deliveries as we move into 2021. We expect to deliver
between 15,500 and 16,000 homes in the fourth quarter of 2020. While community
count is difficult to predict, we expect our community count to increase
approximately 10% in 2021.

                                       37
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For the short term, we are already extremely well positioned to manage costs and
meet demand. While we're selling through communities somewhat faster than
expected, we are well fortified with strong land positions that will be brought
online. And while lumber, in particular, and other costs are rising, we are
actively managing sales pace, primarily to started homes in order to manage that
cost risk. During the third quarter, our ability to raise prices together with
our focus on cost controls enabled us to increase our gross and operating
margins by 270 basis points and 310 basis points, respectively. In addition, our
laser focus on improving our SG&A leverage combined with the benefits of our
increased use of technology helped drive our SG&A to a historical third quarter
low of 8.0% of home sale revenues. We believe our strong margins will continue
throughout 2021, and we expect our bottom line to grow faster than our top line.
For the intermediate term, we are and have been accelerating starts and
production of homes under construction, while also accelerating the readiness of
new communities that we control wherever possible. And for the longer term, we
are focused on ramping up our land purchases for new communities as we believe
the industry will have a sustained expansion for the foreseeable future. We have
remained focused on our optioned versus owned land strategy and will continue to
manage towards a 50%-50% target. At the end of the third quarter, the portion of
land we controlled through options or similar agreements was 35%, up from 30% in
the third quarter of 2019. In addition, we ended the quarter with a 3.8 year
supply of land owned, compared to a 4.4 year supply of land owned in the third
quarter of 2019. Among other things, this has increased our cash flow, which
enabled us to reduce debt such that our quarter-end homebuilding debt-to-total
capital ratio improved to 29.5%. We expect to be in a strong cash and liquidity
position, and plan to continue to pay down debt, resume some form of a stock
reacquisition program and look at other ways to properly deploy capital to
enhance returns.
Our financial services segment also had an excellent quarter, benefiting from an
increase in volume and margins, as well as technology enabled efficiencies. We
are also focused on monetizing non-core assets, including our Multifamily
platform, which we view as a blue-chip asset, but does not generate the type of
returns we get from our core businesses.
With a solid balance sheet, leading positions in almost all of our homebuilding
markets and continued execution of our core operating strategies, we believe
that we are well positioned to meet demand, drive high margins and cash flow and
continue to grow with the market.
(1) Results of Operations
Overview
We historically have experienced, and expect to continue to experience,
variability in quarterly results. Our results of operations for the three and
nine months ended August 31, 2020 are not necessarily indicative of the results
to be expected for the full year. Our homebuilding business is seasonal in
nature and generally reflects higher levels of new home order activity in our
second and third fiscal quarters and increased deliveries in the second half of
our fiscal year. However, a variety of factors, such as the COVID-19 pandemic,
can alter seasonal patterns.
Our net earnings attributable to Lennar were $666.4 million, or $2.12 per
diluted share ($2.13 per basic share), in the third quarter of 2020, compared to
net earnings attributable to Lennar of $513.4 million, or $1.59 per diluted
share ($1.60 per basic share), in the third quarter of 2019. Our net earnings
attributable to Lennar were $1.6 billion, or $5.03 per diluted share ($5.05 per
basic share), in the nine months ended August 31, 2020, compared to net earnings
attributable to Lennar of $1.2 billion, or $3.63 per diluted share ($3.64 per
basic share), in the nine months ended August 31, 2019.













                                       38

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Financial information relating to our operations was as follows:


                                                             Three Months Ended August 31, 2020
                                                     Financial
(In thousands)                      Homebuilding     Services     Multifamily    Lennar Other    Corporate       Total
Revenues:
Sales of homes                     $  5,467,364             -              -               -            -     5,467,364
Sales of land                            34,323             -              -               -            -        34,323
Other revenues                            3,433       237,068        115,170          12,896            -       368,567
Total revenues                        5,505,120       237,068        115,170          12,896            -     5,870,254
Costs and expenses:
Costs of homes sold                   4,204,814             -              -               -            -     4,204,814
Costs of land sold                       32,395             -              -               -            -        32,395
Selling, general and
administrative expenses                 435,949             -              -               -            -       435,949
Other costs and expenses                      -       101,989        118,786           2,062            -       222,837
Total costs and expenses              4,673,158       101,989        118,786           2,062            -     4,895,995
Equity in loss from unconsolidated
entities and Multifamily other
gain                                     (6,431 )           -         (1,532 )        (2,189 )          -       (10,152 )
Other expense, net                      (11,787 )           -              -            (646 )          -       (12,433 )
Operating earnings (loss)          $    813,744       135,079         (5,148 )         7,999            -       951,674
Corporate general and
administrative expenses                       -             -              -               -       92,661        92,661
Earnings (loss) before income
taxes                              $    813,744       135,079         (5,148 )         7,999      (92,661 )     859,013


                                                           Three Months Ended August 31, 2019
                                                     Financial                     Lennar
(In thousands)                      Homebuilding     Services      Multifamily     Other     Corporate       Total
Revenues:
Sales of homes                     $  5,330,694             -               -          -            -     5,330,694
Sales of land                           104,338             -               -          -            -       104,338
Other revenues                            3,966       224,502         183,958      9,600            -       422,026
Total revenues                        5,438,998       224,502         183,958      9,600            -     5,857,058
Costs and expenses:
Costs of homes sold                   4,245,061             -               -          -            -     4,245,061
Costs of land sold                       92,151             -               -          -            -        92,151
Selling, general and
administrative expenses                 444,720             -               -          -            -       444,720
Other costs and expenses                      -       149,804         181,616      2,734            -       334,154
Total costs and expenses              4,781,932       149,804         181,616      2,734            -     5,116,086
Equity in earnings (loss) from
unconsolidated entities and
Multifamily other gain                  (10,459 )           -           7,883      8,903            -         6,327
Other income, net                        12,375             -               -         24            -        12,399
Operating earnings                 $    658,982        74,698          10,225     15,793            -       759,698
Corporate general and
administrative expenses                       -             -               -          -       92,615        92,615
Earnings (loss) before income
taxes                              $    658,982        74,698          10,225     15,793      (92,615 )     667,083




                                       39

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                                                             Nine Months Ended August 31, 2020
                                                    Financial
(In thousands)                     Homebuilding     Services     Multifamily    Lennar Other    Corporate       Total
Revenues:
Sales of homes                    $ 14,533,212             -              -               -            -     14,533,212
Sales of land                           81,023             -              -               -            -         81,023
Other revenues                          12,485       631,992        370,904          33,348            -      1,048,729
Total revenues                      14,626,720       631,992        370,904          33,348            -     15,662,964
Costs and expenses:
Costs of homes sold                 11,359,364             -              -               -            -     11,359,364
Costs of land sold                     102,899             -              -               -            -        102,899
Selling, general and
administrative expenses              1,222,032             -              -               -            -      1,222,032
Other costs and expenses                     -       363,688        379,607           3,564            -        746,859
Total costs and expenses            12,684,295       363,688        379,607           3,564            -     13,431,154
Equity in earnings (loss) from
unconsolidated entities and
Multifamily other gain                 (20,077 )           -          4,702         (28,712 )          -        (44,087 )
Financial Services gain on
deconsolidation                              -        61,418              -               -            -         61,418
Other expense, net                     (16,845 )           -                        (10,195 )          -        (27,040 )
Operating earnings (loss)         $  1,905,503       329,722         (4,001 )        (9,123 )          -      2,222,101
Corporate general and
administrative expenses                      -             -              -               -      262,959        262,959
Earnings (loss) before income
taxes                             $  1,905,503       329,722         (4,001 )        (9,123 )   (262,959 )    1,959,142


                                                             Nine Months Ended August 31, 2019
                                                    Financial
(In thousands)                     Homebuilding     Services      Multifamily    Lennar Other    Corporate       Total
Revenues:
Sales of homes                    $ 14,114,939             -               -               -            -     14,114,939
Sales of land                          134,576             -               -               -            -        134,576
Other revenues                           8,803       572,029         428,764          28,919            -      1,038,515
Total revenues                      14,258,318       572,029         428,764          28,919            -     15,288,030
Homebuilding costs and expenses:
Costs of homes sold                 11,264,640             -               -               -            -     11,264,640
Costs of land sold                     119,685             -               -               -            -        119,685
Selling, general and
administrative                       1,223,701             -               -               -            -      1,223,701
Other costs and expenses                     -       422,142         431,510           7,550                     861,202
Total costs and expenses            12,608,026       422,142         431,510           7,550            -     13,469,228
Equity in earnings (loss) from
unconsolidated entities and
Multifamily other gain                  (4,601 )           -          15,446          12,255            -         23,100
Other expense, net                     (35,325 )           -               -         (12,900 )          -        (48,225 )
Operating earnings                $  1,610,366       149,887          12,700          20,724            -      1,793,677
Corporate general and
administrative expenses                      -             -               -               -      248,071        248,071
Earnings (loss) before income
taxes                             $  1,610,366       149,887          

12,700 20,724 (248,071 ) 1,545,606




Three Months Ended August 31, 2020 versus Three Months Ended August 31, 2019
Revenues from home sales increased 3% in the third quarter of 2020 to $5.5
billion from $5.3 billion in the third quarter of 2019. Revenues were higher
primarily due to a 2% increase in the number of home deliveries, excluding
unconsolidated entities, and a 1% increase in the average sales price of homes
delivered. New home deliveries, excluding unconsolidated entities, increased to
13,809 homes in the third quarter of 2020 from 13,513 homes in the third quarter
of 2019. The average sales price of homes delivered was $396,000 in the third
quarter of 2020, compared to $394,000 in the third quarter of 2019.
Gross margin on home sales were $1.3 billion, or 23.1%, in the third quarter of
2020, compared to $1.1 billion, or 20.4%, in the third quarter of 2019. The
gross margin percentage on home sales increased primarily due to our focus on
reducing construction costs.

                                       40
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Selling, general and administrative expenses were $435.9 million in the third
quarter of 2020, compared to $444.7 million in the third quarter of 2019. As a
percentage of revenues from home sales, selling, general and administrative
expenses improved to 8.0% in the third quarter of 2020, from 8.3% in the third
quarter of 2019 as we focused on improving our leverage combined with the
benefits of our technology efforts.
Operating earnings for our Financial Services segment were $135.1 million in the
third quarter of 2020, compared to $74.7 million ($78.8 million net of
noncontrolling interests) in the third quarter of 2019. Operating earnings
increased due to an improvement in the mortgage business as a result of an
increase in volume and margin. Additionally, operating earnings of our title
business increased primarily due to an increase in volume.
Operating loss for our Multifamily segment was $5.1 million in the third quarter
of 2020, compared to operating earnings of $10.2 million ($10.5 million net of
noncontrolling interests) in the third quarter of 2019, which included the sale
of an operating property. Operating earnings for our Lennar Other segment were
$8.0 million in the third quarter of 2020, compared to $15.8 million ($15.9
million net of noncontrolling interests) in the third quarter of 2019.
Nine Months Ended August 31, 2020 versus Nine Months Ended August 31, 2019
Revenues from home sales increased 3% in the nine months ended August 31, 2020
to $14.5 billion from $14.1 billion in the nine months ended August 31, 2019.
Revenues were higher primarily due to a 5% increase in the number of home
deliveries, excluding unconsolidated entities. New home deliveries, excluding
unconsolidated entities, increased to 36,775 homes in the nine months ended
August 31, 2020 from 35,021 homes in the nine months ended August 31, 2019. The
average sales price of homes delivered was $395,000 in the nine months ended
August 31, 2020, compared to $403,000 in the nine months ended August 31, 2019.
The decrease in average sales price primarily resulted from continuing to shift
to lower-priced communities and regional product mix due to COVID-19
stay-at-home orders in certain higher priced markets.
Gross margin on home sales were $3.2 billion, or 21.8%, in the nine months ended
August 31, 2020, compared to $2.9 billion or 20.2%, in the nine months ended
August 31, 2019. The gross margin percentage on home sales increased primarily
due to our continued focus on reducing construction costs. Loss on land sales in
the nine months ended August 31, 2020 was $21.9 million, primarily due to a
write-off of costs in the second quarter of 2020 as a result of us not moving
forward with a naval base development in Concord, California, northeast of San
Francisco. Gross margin on land sales were $14.9 million in the nine months
ended August 31, 2019.
Selling, general and administrative expenses were $1.2 billion in both the nine
months ended August 31, 2020 and 2019. As a percentage of revenues from home
sales, selling, general and administrative expenses improved to 8.4% in the nine
months ended August 31, 2020, from 8.7% in the nine months ended August 31,
2019.
Operating earnings for our Financial Services segment were $329.7 million
($343.8 million net of noncontrolling interests) in the nine months ended August
31, 2020, compared to $149.9 million ($163.0 million net of noncontrolling
interests) in the nine months ended August 31, 2019. Operating earnings
increased due to an improvement in our mortgage and title businesses as a result
of an increase in volume and margin, as well as reductions in loan origination
costs. Additionally, in the second quarter of 2020, our Financial Services
segment recorded a $61.4 million gain on the deconsolidation of a previously
consolidated entity.
Operating loss for our Multifamily segment was $4.0 million in the nine months
ended August 31, 2020, compared to operating earnings of $12.7 million ($13.4
million net of noncontrolling interests) in the nine months ended August 31,
2019. Operating loss for our Lennar Other segment was $9.1 million in the nine
months ended August 31, 2020, compared to operating earnings of $20.7 million
($21.2 million net of noncontrolling interests) in the nine months ended August
31, 2019.
For the nine months ended August 31, 2020 and 2019, we had a tax provision of
$382.5 million and $374.7 million, respectively, which resulted in an overall
effective income tax rate of 19.5% and 24.2%, respectively. The reduction in the
overall effective income tax rate is primarily due to the extension of the new
energy efficient home tax credit during the first quarter of 2020.
Homebuilding Segments
At August 31, 2020, our reportable Homebuilding segments and Homebuilding Other
consisted of homebuilding divisions located in:
East: Florida, New Jersey, Pennsylvania and South Carolina
Central: Georgia, Illinois, Indiana, Maryland, North Carolina, Minnesota,
Tennessee and Virginia
Texas: Texas
West: Arizona, California, Colorado, Nevada, Oregon, Utah and Washington

                                       41
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Other: Urban divisions and other homebuilding related investments primarily in
California, including FivePoint Holdings, LLC ("FivePoint")
The following tables set forth selected financial and operational information
related to our homebuilding operations for the periods indicated:
Selected Financial and Operational Data
                                                                        

Three Months Ended August 31, 2020


                                Gross Margins                                                         Operating Earnings (Loss)
                                                                                                                     Equity in
                                                                                                                  Earnings (Loss)
                                  Costs of                        Net Margins on     Gross Margins                      from                            Operating
               Sales of Homes     Sales of                        Sales of 

Homes on Sales of Other Unconsolidated Other Income

Earnings


(In thousands)     Revenue          Homes      Gross Margin %           (1)               Land         Revenue        Entities       (Expense), net       (Loss)
East           $   1,477,273     1,112,035           24.7  %          241,904            (103 )           638               897            853          244,189
Central            1,062,799       842,764           20.7  %          134,395             (57 )         1,341                70         (3,071 )        132,678
Texas                719,467       538,480           25.2  %          114,954           2,016             203               242         (1,304 )        116,111
West               2,205,235     1,706,530           22.6  %          343,353              72           1,145                48         (1,784 )        342,834
Other (2)              2,590         5,005          (93.2 )%           (8,005 )             -             106            (7,688 )       (6,481 )        (22,068 )
Totals         $   5,467,364     4,204,814           23.1  %     $    826,601           1,928           3,433            (6,431 )      (11,787 )        813,744


                                                                  Three Months Ended August 31, 2019

                             Gross Margins                                                  Operating Earnings (Loss)
                                                                                                          Equity in
                                                                                 Gross                 Earnings (Loss)
                                  Costs of                  Net Margins on      Margins                     from                            Operating
               Sales of Homes     Sales of       Gross      Sales of Homes 

on Sales Other Unconsolidated Other Income Earnings (In thousands) Revenue Homes Margin %

           (1)           of Land     Revenue       Entities       (Expense), net      (Loss)
East           $   1,500,056     1,167,440      22.2 %          209,610            119       1,083              (184 )       8,707         219,335
Central            1,054,715       858,434      18.6 %          108,564          4,113         699                14         3,199         116,589
Texas                696,903       555,561      20.3 %           75,213          3,322         253               176          (666 )        78,298
West               2,060,740     1,646,254      20.1 %          253,844            727       1,336               655         2,862         259,424
Other (2)             18,280        17,372       5.0 %           (6,318 )        3,906         595           (11,120 )      (1,727 )       (14,664 )
Totals         $   5,330,694     4,245,061      20.4 %     $    640,913         12,187       3,966           (10,459 )      12,375         658,982



                                                                       

Nine Months Ended August 31, 2020


                                Gross Margins                                                        Operating Earnings (Loss)
                                                                                                                     Equity in
                                                                                                                  Earnings (Loss)
                                   Costs of                        Net Margins on     Gross Margins                    from                            Operating
               Sales of Homes      Sales of                        Sales of Homes      on Sales of      Other     Unconsolidated     Other Income      Earnings
(In thousands)     Revenue          Homes       Gross Margin %           (1)              Land         Revenue       Entities       (Expense), net      (Loss)
East           $   3,904,268      2,971,929           23.9  %           581,923         (1,681 )        3,913             1,474           475          586,104
Central            2,833,745      2,300,783           18.8  %           291,672           (703 )        2,209               642        (1,789 )        292,031
Texas              1,877,374      1,428,758           23.9  %           266,647          5,213            970               446        (4,205 )        269,071
West               5,894,183      4,619,334           21.6  %           841,369         (1,267 )        4,873             3,948        (1,088 )        847,835
Other (2)             23,642         38,560          (63.1 )%           (29,795 )      (23,438 )          520           (26,587 )     (10,238 )        (89,538 )
Totals         $  14,533,212     11,359,364           21.8  %     $   1,951,816        (21,876 )       12,485           (20,077 )     (16,845 )      1,905,503




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Nine Months Ended August 31, 2019


                                Gross Margins                                                         Operating Earnings (Loss)
                                                                                                                      Equity in
                                                                                                                   Earnings (Loss)
                                   Costs of                        Net Margins on     Gross Margins                     from                            Operating
               Sales of Homes      Sales of                        Sales of Homes      on Sales of       Other     Unconsolidated     Other Income      Earnings
(In thousands)     Revenue          Homes       Gross Margin %           (1)               Land         Revenue       Entities       (Expense), net      (Loss)
East           $   3,828,659      2,998,113           21.7  %           491,322          3,854           2,802             (418 )        6,243          503,803
Central            2,723,292      2,230,857           18.1  %           254,422          4,957             975              152          3,732          264,238
Texas              1,796,343      1,435,311           20.1  %           182,257          5,597             508              334         (2,746 )        185,950
West               5,738,881      4,569,646           20.4  %           718,061         (3,422 )         2,743              158          5,449          722,989
Other (2)             27,764         30,713          (10.6 )%           (19,464 )        3,905           1,775           (4,827 )      (48,003 )        (66,614 )
Totals         $  14,114,939     11,264,640           20.2  %     $   1,626,598         14,891           8,803           (4,601 )      (35,325 )      1,610,366

(1) Net margins on sales of homes include selling, general and administrative

expenses.

(2) Negative gross and net margins were due to period costs in Urban divisions

that impact costs of homes sold without sufficient sales of homes revenue to

offset those costs.




Summary of Homebuilding Data
Deliveries:
                                         Three Months Ended
              Homes              Dollar Value (In thousands)          Average Sales Price
           August 31,                    August 31,                        August 31,
         2020      2019               2020                2019          2020          2019
East     4,309     4,521    $      1,488,022           1,502,780    $    345,000    332,000
Central  2,767     2,809           1,062,799           1,054,715         384,000    375,000
Texas    2,598     2,260             719,467             696,904         277,000    308,000
West     4,165     3,908           2,205,235           2,060,740         529,000    527,000
Other        3        24               2,590              18,280         863,000    762,000
Total   13,842    13,522    $      5,478,113           5,333,419    $    396,000    394,000


Of the total homes delivered listed above, 33 homes with a dollar value of $10.7
million and an average sales price of $326,000 represent home deliveries from
unconsolidated entities for the three months ended August 31, 2020, compared to
nine home deliveries with a dollar value of $2.7 million and an average sales
price of $303,000 for the three months ended August 31, 2019.
                                         Nine Months Ended
              Homes             Dollar Value (In thousands)          Average Sales Price
           August 31,                    August 31,                       August 31,
         2020      2019              2020               2019           2020          2019
East    11,511    11,502    $      3,924,289          3,838,124    $    341,000    334,000
Central  7,389     7,193           2,833,745          2,723,291         384,000    379,000
Texas    6,637     5,660           1,877,374          1,796,344         283,000    317,000
West    11,273    10,667           5,894,183          5,738,881         523,000    538,000
Other       25        49              23,642             43,312         946,000    884,000
Total   36,835    35,071    $     14,553,233         14,139,952    $    395,000    403,000


Of the total homes delivered listed above, 60 homes with a dollar value of $20.0
million and an average sales price of $334,000 represent home deliveries from
unconsolidated entities for the nine months ended August 31, 2020, compared to
50 home deliveries with a dollar value of $25.0 million and an average sales
price of $500,000 for the nine months ended August 31, 2019.


                                       43
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New Orders (1):
                                                              Three Months Ended
                   Active Communities            Homes            Dollar

Value (In thousands) Average Sales Price


                       August 31,             August 31,                   August 31,                      August 31,
                    2020         2019       2020       2019            2020             2019            2020          2019
East                   340        361      4,655      4,530     $      1,631,349     1,462,210     $    350,000     323,000
Central                297        338      3,375      2,632            1,298,792     1,003,818          385,000     381,000
Texas                  217        235      2,746      2,221              743,553       660,304          271,000     297,000
West                   341        362      4,786      3,949            2,580,328     2,049,404          539,000     519,000
Other                    3          4          2         37                1,452        33,896          726,000     916,000
Total                1,198      1,300     15,564     13,369     $      6,255,474     5,209,632     $    402,000     390,000


Of the total new orders listed above, 34 homes with a dollar value of $9.7
million and an average sales price of $286,000 represent new orders in four
active communities from unconsolidated entities for the three months ended
August 31, 2020, compared to 21 new orders with a dollar value of $7.3 million
and an average sales price of $349,000 in five active communities for the three
months ended August 31, 2019.
                                         Nine Months Ended
              Homes             Dollar Value (In thousands)          Average Sales Price
           August 31,                    August 31,                       August 31,
         2020      2019              2020               2019           2020          2019
East    12,512    12,756    $      4,266,221          4,242,708    $    341,000    333,000
Central  8,741     7,974           3,341,959          3,020,328         382,000    379,000
Texas    7,327     6,069           1,986,770          1,861,849         271,000    307,000
West    12,359    11,481           6,508,509          5,977,758         527,000    521,000
Other       16        70              15,189             60,447         949,000    864,000
Total   40,955    38,350    $     16,118,648         15,163,090    $    394,000    395,000


Of the total new orders listed above, 85 homes with a dollar value of $26.8
million and an average sales price of $316,000 represent new orders from
unconsolidated entities for the nine months ended August 31, 2020, compared to
68 new orders with a dollar value of $32.1 million and an average sales price of
$472,000 for the nine months ended August 31, 2019.
(1) New orders represent the number of new sales contracts executed with

homebuyers, net of cancellations, during the three and nine months ended

August 31, 2020 and August 31, 2019.





Backlog:
              Homes              Dollar Value (In thousands)          Average Sales Price
           August 31,                    August 31,                        August 31,
         2020      2019               2020                2019          2020          2019
East     6,691     6,999    $      2,368,300           2,419,795    $    354,000    346,000
Central  4,502     4,110           1,752,180           1,597,944         389,000    389,000
Texas    2,860     2,557             822,734             826,226         288,000    323,000
West     5,644     5,215           2,922,743           2,726,329         518,000    523,000
Other        -        27                   -              26,123               -    968,000
Total   19,697    18,908    $      7,865,957           7,596,417    $    399,000    402,000


Of the total homes in backlog listed above, 56 homes with a backlog dollar value
of $17.0 million and an average sales price of $303,000 represent the backlog
from unconsolidated entities at August 31, 2020, compared to 25 homes with a
backlog dollar value of $9.8 million and an average sales price of $391,000 at
August 31, 2019.
(1) During the nine months ended August 31, 2019, we acquired 13 homes in

backlog.




Backlog represents the number of homes under sales contracts. Homes are sold
using sales contracts, which are generally accompanied by sales deposits. In
some instances, purchasers are permitted to cancel sales if they fail to qualify
for financing or under certain other circumstances. Various state and federal
laws and regulations may sometimes give purchasers a right to cancel homes in
backlog. We do not recognize revenue on homes under sales contracts until the
sales are closed and title passes to the new homeowners.

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Three Months Ended August 31, 2020 versus Three Months Ended August 31, 2019
Homebuilding East: Revenues from home sales decreased in the third quarter of
2020 compared to the third quarter of 2019, primarily due to a decrease in the
number of home deliveries in all the states of the segment except in New Jersey,
partially offset by an increase in the average sales price of homes delivered in
all the states of the segment except in Pennsylvania. The decrease in the number
of home deliveries was primarily due to the effects of COVID-19 and the economic
shutdown. The increase in the number of home deliveries in New Jersey was
primarily due to higher demand as the number of deliveries per active community
increased during the quarter. The increase in the average sales price of homes
delivered was primarily due to favorable market conditions. The decrease in the
average sales price of homes delivered in Pennsylvania was primarily driven by a
change in product mix due to a higher percentage of deliveries in lower-priced
communities. Gross margin percentage on home deliveries in the third quarter of
2020 increased compared to the same period last year primarily due to reducing
our construction costs and an increase in the average sales price of homes
delivered.
Homebuilding Central: Revenues from home sales increased in the third quarter of
2020 compared to the third quarter of 2019, primarily due to an increase in the
average sales price of homes delivered in all the states of the segment except
in Indiana, North Carolina and Tennessee, partially offset by a decrease in the
number of home deliveries in all the states in the segment except in Maryland,
Minnesota and Tennessee. The decrease in the number of home deliveries was
primarily due to the effects of COVID-19 and the economic shutdown. The increase
in the average sales price of homes delivered was primarily due to favorable
market conditions. Gross margin percentage on home deliveries in the third
quarter of 2020 increased compared to the same period last year primarily due to
reducing our construction costs and an increase in the average sales price of
homes delivered.
Homebuilding Texas: Revenues from home sales increased in the third quarter of
2020 compared to the third quarter of 2019, primarily due to an increase in the
number of home deliveries, partially offset by a decrease in the average sales
price of homes delivered. The increase in the number of deliveries was primarily
due to higher demand as the number of deliveries per active community increased.
The decrease in average sales price of homes delivered was primarily due to
closing out higher priced communities and shifting into lower priced
communities. Gross margin percentage on home deliveries in the third quarter of
2020 increased compared to the same period last year primarily due to reducing
our construction costs.
Homebuilding West: Revenues from home sales increased in the third quarter of
2020 compared to the third quarter of 2019, primarily due to an increase in the
number of home deliveries in all states of the segment except Arizona and
Oregon. The increase in the number of home deliveries in all states of the
segment except Arizona and Oregon was primarily due to higher demand as the
number of deliveries per active community increased during the quarter. The
decrease in the number of home deliveries in Arizona and Oregon was primarily
due to the effects of COVID-19 and the economic shutdown. Gross margin
percentage on home deliveries in the third quarter of 2020 increased compared to
the same period last year primarily due to reducing our construction costs.
Nine Months Ended August 31, 2020 versus Nine Months Ended August 31, 2019
Homebuilding East: Revenues from home sales increased in the nine months ended
August 31, 2020 compared to the nine months ended August 31, 2019, primarily due
to an increase in the average sales price of homes delivered in Florida and New
Jersey, partially offset by a decrease in the average sales price of homes
delivered in Pennsylvania and South Carolina. The increase in the average sales
price of homes delivered in Florida and New Jersey was primarily due to
favorable market conditions. The decrease in the average sales price of homes
delivered in the South Carolina and Pennsylvania was primarily driven by a
change in product mix due to a higher percentage of deliveries in lower-priced
communities. Gross margin percentage on home deliveries in the nine months ended
August 31, 2020 increased compared to the same period last year primarily due to
reducing our construction costs and an increase in the average sales price of
homes delivered.
Homebuilding Central: Revenues from home sales increased in the nine months
ended August 31, 2020 compared to the nine months ended August 31, 2019,
primarily due to an increase in the number of home deliveries in all the states
in the segment except in North Carolina and Virginia. The increase in the number
of home deliveries was primarily due to higher demand as the number of
deliveries per active community increased. The decrease in the number of homes
deliveries in North Carolina and Virginia was primarily due to the effects of
COVID-19 and the economic shutdown. Gross margin percentage on home deliveries
in the nine months ended August 31, 2020 increased compared to the same period
last year primarily due to reducing our construction costs, partially offset by
valuation adjustments taken in a few communities.
Homebuilding Texas: Revenues from home sales increased in the nine months ended
August 31, 2020 compared to the nine months ended August 31, 2019, primarily due
to an increase in the number of home deliveries, partially offset by a decrease
in the average sales price of homes delivered. The increase in the number of
deliveries was primarily due to higher demand as the number of deliveries per
active community increased. The decrease in average sales price of homes
delivered was primarily due to closing out higher priced communities and
shifting into lower priced communities. Gross margin

                                       45
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percentage on home deliveries in the nine months ended August 31, 2020 increased
compared to the same period last year primarily due to reducing our construction
costs.
Homebuilding West: Revenues from home sales increased in the nine months ended
August 31, 2020 compared to the nine months ended August 31, 2019, primarily due
to an increase in the number of home deliveries in all the states of the segment
except Oregon, Washington and Utah, partially offset by a decrease in the
average sales price of homes delivered in all the states of the segment except
Arizona. The increase in the number of home deliveries in all the states of the
segment except Oregon, Washington and Utah was primarily due to higher demand as
the number of deliveries per active community increased. The decrease in the
number of home deliveries in Oregon, Washington and Utah was primarily due to
the effects of COVID-19 and the economic shutdown. The decrease in the average
sales price of homes delivered in all the states of the segment except Arizona
was primarily driven by a change in product mix due to a higher percentage of
deliveries in lower-priced communities. The increase in the average sales price
of homes delivered in Arizona was primarily due to favorable market conditions.
Gross margin percentage on home deliveries in the nine months ended August 31,
2020 increased compared to the same period last year primarily due to reducing
our construction costs.
Financial Services Segment
Our Financial Services reportable segment provides mortgage financing, title and
closing services primarily for buyers of our homes. The segment also originates
and sells into securitizations commercial mortgage loans through its LMF
Commercial business. Our Financial Services segment sells substantially all of
the residential loans it originates within a short period in the secondary
mortgage market, the majority of which are sold on a servicing released,
non-recourse basis. After the loans are sold, we retain potential liability for
possible claims by purchasers that we breached certain limited industry-standard
representations and warranties in the loan sale agreements.
The following table sets forth selected financial and operational information
related to the residential mortgage and title activities of our Financial
Services segment:
                                              Three Months Ended            Nine Months Ended
                                                  August 31,                   August 31,
(Dollars in thousands)                        2020           2019          2020          2019
Dollar value of mortgages originated      $ 3,529,000     2,883,000     9,007,000     7,440,000
Number of mortgages originated                 10,800         9,200        27,800        23,700
Mortgage capture rate of Lennar
homebuyers                                         82 %          77 %          80 %          75 %
Number of title and closing service
transactions                                   16,400        14,300        

42,000 42,400




At August 31, 2020 and November 30, 2019, the carrying value of Financial
Services' commercial mortgage-backed securities ("CMBS") was $164.6 million and
$166.0 million, respectively. These securities were purchased at discounts
ranging from 6% to 84% with coupon rates ranging from 2.0% to 5.3%, stated and
assumed final distribution dates between October 2027 and December 2028, and
stated maturity dates between October 2050 and December 2051. Our Financial
Services segment classifies these securities as held-to-maturity based on its
intent and ability to hold the securities until maturity.
LMF Commercial
LMF Commercial originates and sells into securitizations five, seven and ten
year commercial first mortgage loans, which are secured by income producing
properties.
During the nine months ended August 31, 2020, LMF Commercial originated
commercial loans with a total principal balance of $582.0 million, all of which
were recorded as loans held-for-sale and sold $622.3 million of commercial loans
into four separate securitizations. As of August 31, 2020, there were no
unsettled transactions.
During the nine months ended August 31, 2019, LMF Commercial originated
commercial loans with a total principal balance of $984.5 million, all of which
were recorded as loans held-for-sale, and sold $848.3 million of loans into
seven separate securitizations.

                                       46
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Multifamily Segment
The following tables provide information related to our investment in the
Multifamily segment:
Balance Sheets                                               August 31, 2020      November 30, 2019
(Dollars in thousands)
Multifamily investments in unconsolidated entities         $         656,012               561,190
Lennar's net investment in Multifamily                               930,213               829,537


Statements of Operations                            Three Months Ended        Nine Months Ended
                                                        August 31,               August 31,
(Dollars in thousands)                               2020        2019         2020          2019
Number of operating properties/investments sold
through joint ventures                                   -          1              2            3
Lennar's share of gains on the sale of operating
properties/investments                             $     -     12,620     $ 

3,001 $ 28,128




Despite widespread reductions in economic activity due to the COVID-19 pandemic,
the properties in which the Multifamily segment has investments did not,
overall, experience significant increases in vacancies or in delinquent rent
payments to date.
(2) Financial Condition and Capital Resources
At August 31, 2020, we had cash and cash equivalents and restricted cash related
to our homebuilding, financial services, multifamily and other operations of
$2.2 billion, compared to $1.5 billion at November 30, 2019 and $1.1 billion at
August 31, 2019.
We finance all of our activities, including homebuilding, financial services,
multifamily, other and general operating needs, primarily with cash generated
from our operations, debt issuances and cash borrowed under our warehouse lines
of credit and our unsecured revolving credit facility (the "Credit Facility").
Operating Cash Flow Activities
During the nine months ended August 31, 2020 and 2019, cash provided by
operating activities totaled $2.9 billion and $298.3 million, respectively.
During the nine months ended August 31, 2020, cash provided by operating
activities was impacted primarily by our net earnings, a decrease in loans
held-for-sale of $557.8 million primarily related to the sale of loans
originated by Financial Services, a decrease in receivables of $264.6 million
and an increase in accounts payable and other liabilities of $165.6 million,
partially offset by an increase in other assets of $124.6 million.
During the nine months ended August 31, 2019, cash provided by operating
activities was impacted primarily by our net earnings, a decrease in receivables
of $528.0 million, partially offset by an increase in inventories due to
strategic land purchases, land development and construction costs of $1.6
billion.
Investing Cash Flow Activities
During the nine months ended August 31, 2020 and 2019, cash used in investing
activities totaled $267.5 million and $39.4 million, respectively. During the
nine months ended August 31, 2020, our cash used in investing activities was
primarily due to cash contributions of $412.5 million to unconsolidated entities
and deconsolidation of a previously consolidated entity, which included (1)
$86.9 million to Homebuilding unconsolidated entities, (2) $122.7 million to
Multifamily unconsolidated entities, (3) $50.3 million to the strategic
technology investments included in the Lennar Other segment; and (4) the
derecognition of $152.5 million of cash as of the date of deconsolidation of a
previously consolidated Financial Services entity. This was partially offset by
distributions of capital from unconsolidated entities of $135.7 million, which
primarily included (1) $58.3 million from Homebuilding unconsolidated entities,
(2) $39.1 million from the unconsolidated Rialto real estate funds included in
our Lennar Other segment; and (3) $38.3 million from Multifamily unconsolidated
entities.
During the nine months ended August 31, 2019, cash used in investing activities
was primarily due to cash contributions of $329.9 million to unconsolidated
entities, which included (1) $196.4 million to Homebuilding unconsolidated
entities, (2) $80.2 million to Multifamily unconsolidated entities primarily for
working capital; and (3) $52.9 million to the unconsolidated Rialto real estate
funds and strategic investments included in our Lennar Other segment; and $69.6
million of net addition to operating properties and equipment. This was
partially offset by distributions of capital from unconsolidated and
consolidated entities of $250.3 million, which included (1) $107.2 million from
Multifamily unconsolidated entities; (2) $78.7 million from Homebuilding
unconsolidated entities; (3) $41.6 million from the unconsolidated Rialto real
estate funds and strategic investments included in our Lennar Other segment; and
(4)$22.9 million from Financial Services consolidated entities. In addition,
cash used in investing activities was also offset by $50.0 million of proceeds
from the sale of two Homebuilding operating properties and other assets, and
$41.6 million of proceeds from the sales of available-for-sale securities.

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Financing Cash Flow Activities
During the nine months ended August 31, 2020 and 2019, cash used in financing
activities totaled $1.9 billion and $785.1 million, respectively. During the
nine months ended August 31, 2020, cash used in financing activities was
primarily impacted by (1) $789.3 million of net repayments under our Financial
Services' warehouse facilities, which included the LMF Commercial warehouse
repurchase facilities; (2) $550.3 million of principal payments on notes payable
and other borrowings; (3) the redemption of $313 million aggregate principal
amount of our senior notes; and (4) repurchases of our common stock for $319.0
million, which included $288.5 million of repurchases under our repurchase
program and $30.3 million of repurchases related to our equity compensation
plan. These were partially offset by $175.6 million of receipts related to
noncontrolling interests.
During the nine months ended August 31, 2019, cash used in financing activities
was primarily impacted by (1) payment at maturity of $500.0 million aggregate
principal amount of our 4.50% senior notes due June 2019; (2) $423.1 million of
net repayments under our Financial Services' warehouse facilities, which
included the LMF Commercial warehouse repurchase facilities; (3) $154.7 million
principal payment on other borrowings; and (4) repurchases of our common stock
for $419.3 million, which included $394.7 million of repurchases of our stock
under our repurchase program and $24.6 million of repurchases related to our
equity compensation plan. These were partially offset by (1) $700 million of net
borrowings under our Credit Facility; and (2) $62.6 million proceeds from other
borrowings.
Debt to total capital ratios are financial measures commonly used in the
homebuilding industry and are presented to assist in understanding the leverage
of our homebuilding operations. Homebuilding debt to total capital and net
Homebuilding debt to total capital are calculated as follows:
                                                  August 31,     November 30,     August 31,
(Dollars in thousands)                               2020            2019            2019
Homebuilding debt                               $  7,180,274       7,776,638      9,075,016
Stockholders' equity                              17,172,103      15,949,517     15,371,938
Total capital                                   $ 24,352,377      23,726,155     24,446,954
Homebuilding debt to total capital                      29.5 %          32.8 %         37.1 %
Homebuilding debt                               $  7,180,274       7,776,638      9,075,016
Less: Homebuilding cash and cash equivalents       1,966,796       1,200,832        795,405
Net Homebuilding debt                           $  5,213,478       6,575,806      8,279,611
Net Homebuilding debt to total capital (1)              23.3 %          

29.2 % 35.0 %

(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). We believe the ratio of net homebuilding debt to total

capital is a relevant and a useful financial measure to investors in

understanding the leverage employed in homebuilding operations. However,

because net homebuilding debt to total capital is not calculated in

accordance with GAAP, this financial measure should not be considered in

isolation or as an alternative to financial measures prescribed by GAAP.

Rather, this non-GAAP financial measure should be used to supplement our GAAP

results.




At August 31, 2020, Homebuilding debt to total capital improved compared to
August 31, 2019 and November 30, 2019, primarily as a result of a decrease in
Homebuilding debt and an increase in stockholders' equity due to net earnings.
We are continually exploring various types of transactions to manage our
leverage and liquidity positions, take advantage of market opportunities and
increase our revenues and earnings. 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. 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.
Our Homebuilding senior notes and other debts payable are summarized within Note
7 of the Notes to the Condensed Consolidated Financial Statements.
At August 31, 2020, we had an unsecured revolving credit facility (the "Credit
Facility") with maximum borrowings of $2.4 billion maturing in 2024. The Credit
Facility agreement (the "Credit Agreement") provides that up to $500 million in
commitments may be used for letters of credit. Under the Credit Agreement, as of
the end of the fiscal quarter, we are subject to debt covenants. The maturity,
details and debt covenants of the Credit Facility are unchanged from the
disclosure in the Financial Condition and Capital Resources section of our Form
10-K for the year ended November 30, 2019. In addition to the Credit Facility,
we have other letter of credit facilities with different financial institutions.
Our outstanding letters of credit and surety bonds are described below:

                                       48
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                                                          August 31,       November 30,
                                                             2020              2019
(In thousands)
Performance letters of credit                          $      770,527          715,793
Financial letters of credit                                   258,703          184,075
Surety bonds                                                3,041,946        2,946,167
Anticipated future costs primarily for site
improvements related to performance surety bonds            1,498,173       

1,427,145




Currently, substantially all of our 100% owned homebuilding subsidiaries are
guaranteeing all our senior notes (the "Guaranteed Notes"). The guarantees are
full and unconditional. However, they will terminate as to a subsidiary any time
it is not directly or indirectly guaranteeing at least $75 million of Lennar
Corporation debt or when the subsidiary is sold. These guarantees are outlined
in Note 13 of the Notes to the Condensed Consolidated Financial Statements.
Our Homebuilding average debt outstanding and the average rates of interest was
as follows:
                                            Nine Months Ended
                                       August 31,      August 31,
(Dollars in thousands)                    2020            2019

Homebuilding average debt outstanding $ 7,896,372 $ 9,191,109 Average interest rate

                         4.9 %           4.8 %
Interest incurred                         272,347         320,960


Under the amended Credit Facility agreement executed in April 2019 (the "Credit
Agreement"), as of the end of each fiscal quarter, we are required to maintain
minimum consolidated tangible net worth of approximately $7.1 billion plus the
sum of 50% of the cumulative consolidated net income for each completed fiscal
quarter subsequent to February 28, 2019, if positive, and 50% of the net cash
proceeds from any equity offerings from and after February 28, 2019, minus the
lesser of 50% of the amount paid after April 11, 2019 to repurchase common stock
and $375.0 million. We are required to maintain a leverage ratio that shall not
exceed 65% and may be reduced by 2.5% per quarter if our interest coverage ratio
is less than 2.25:1.00 for two consecutive fiscal calendar quarters. The
leverage ratio will have a floor of 60%. If our interest coverage ratio
subsequently exceeds 2.25:1.00 for two consecutive fiscal calendar quarters, the
leverage ratio we will be required to maintain will be increased by 2.5% per
quarter to a maximum of 65%. 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. We believe that we were in compliance with our debt
covenants at August 31, 2020.
The following summarizes our debt covenant requirements and our actual levels or
ratios with respect to those covenants as calculated per the Credit Agreement as
of August 31, 2020:
                                           Level Achieved as of
(Dollars in thousands)  Covenant Level        August 31, 2020
Minimum net worth test $     8,370,211              11,621,827
Maximum leverage ratio            65.0 %                  27.8 %
Liquidity test                    1.00                    5.68



                                       49

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At August 31, 2020, the Financial Services warehouse facilities were all 364-day
repurchase facilities and were used to fund residential mortgages or commercial
mortgages for LMF Commercial as follows:
(In thousands)                      Maximum Aggregate Commitment
Residential facilities maturing:
January 2021                       $                      500,000
March 2021                                                300,000
June 2021                                                 600,000
July 2021                                                 200,000
Total - Residential facilities     $                    1,600,000
LMF Commercial facilities maturing
November 2020                      $                      200,000
December 2020 (1)                                         700,000
Total - LMF Commercial facilities  $                      900,000
Total                              $                    2,500,000


(1) Includes $50.0 million LMF Commercial warehouse repurchase facility used to

finance the origination of floating rate accrual loans, which are reported as

accrual loans within loans held-for-investment, net. There were borrowings

under this facility of $11.4 million as of August 31, 2020.




Our Financial Services segment uses the residential facilities to finance its
residential lending activities until the mortgage loans are sold to investors
and the proceeds are collected. The facilities are non-recourse to us and are
expected to be renewed or replaced with other facilities when they mature. The
LMF Commercial facilities finance LMF Commercial loan originations and
securitization activities and were secured by a 75% interest in the originated
commercial loans financed.
Borrowings and collateral under the facilities and their prior year predecessors
were as follows:
(In thousands)                                                  August 31, 2020      November 30, 2019
Borrowings under the residential facilities                   $         699,016             1,374,063
Collateral under the residential facilities                             727,319             1,423,650
Borrowings under the LMF Commercial facilities                          103,667               216,870


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. Without the
facilities, the Financial Services segment would have to use cash from
operations and other funding sources to finance its lending activities.
Changes in Capital Structure
In January 2019, our Board of Directors authorized the repurchase of up to the
lesser of $1.0 billion in value, or 25 million in shares, of our outstanding
Class A and Class B common stock. The repurchase authorization has no expiration
date. The following table represents the repurchase of our Class A and Class B
common stocks, under this program, for the three and nine months ended August
31, 2020 and 2019:
                                        Three Months Ended                                            Nine Months Ended
                         August 31, 2020                August 31, 2019                August 31, 2020               August 31, 2019
(Dollars in
thousands,
except price per
share)               Class A        Class B          Class A         Class 

B Class A Class B Class A Class B Shares repurchased

                 -              -         6,110,000              -      4,250,000      115,000         8,110,000              -

Principal $ - $ - $ 295,930 $ - $ 282,274 $ 6,155 $ 394,710 $ - Average price $ - $ - $ 48.41 $ - $ 66.42 $ 53.52 $ 48.65 $ - per share




During the nine months ended August 31, 2020, treasury stock increased primarily
due to our repurchase of 4.4 million shares of Class A and Class B common stock
through our stock repurchase program. During the nine months ended August 31,
2019, treasury stock increased due to our repurchase of 8.1 million shares of
Class A common stock during the nine months ended August 31, 2019 through our
stock repurchase program and 0.6 million shares of Class A common stock
primarily due to activity related to our equity compensation plan.
On October 1, 2020, our Board of Directors increased our annual dividend to
$1.00 per share from $0.50 per share resulting in a quarterly cash dividend of
$0.25 per share on both our Class A and Class B common stock, payable on October
30, 2020 to holders of record at the close of business on October 16, 2020. On
July 24, 2020, we paid cash dividends of $0.125 per share on both our Class A
and Class B common stock to holders of record at the close of business on July
10, 2020, as

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declared by our Board of Directors on June 25, 2020. We declared and paid cash
dividends of $0.04 per share on both our Class A and Class B common stock in
each quarter for the year ended November 30, 2019.
Based on our current financial condition and credit relationships, we believe
that, assuming the effects of the COVID-19 pandemic and resulting governmental
actions on our operations do not significantly worsen for a protracted period,
our operations and borrowing resources will provide for our current and
long-term capital requirements at our anticipated levels of activity.
Off-Balance Sheet Arrangements
Homebuilding: Investments in Unconsolidated Entities
At August 31, 2020, we had equity investments in 39 active homebuilding and land
unconsolidated entities (of which three had recourse debt, nine had non-recourse
debt and 27 had no debt) compared to 36 active homebuilding and land
unconsolidated entities at November 30, 2019. Historically, we have invested in
unconsolidated entities that acquired and developed land (1) for our
homebuilding operations or for sale to third parties or (2) for the construction
of homes for sale to third-party homebuyers. Through these entities, we have
primarily sought to reduce and share our risk by limiting the amount of our
capital invested in land, while obtaining access to potential future homesites
and allowing us to participate in strategic ventures. The use of these entities
also, in some instances, has enabled us to acquire land to which we could not
otherwise obtain access, or could not obtain access on as favorable terms,
without the participation of a strategic partner. Participants in these joint
ventures have been land owners/developers, other homebuilders and financial or
strategic partners. Joint ventures with land owners/developers have given us
access to homesites owned or controlled by our partners. Joint ventures with
other homebuilders have provided us with the ability to bid jointly with our
partners for large land parcels. Joint ventures with financial partners have
allowed us to combine our homebuilding expertise with access to our partners'
capital. Joint ventures with strategic partners have allowed us to combine our
homebuilding expertise with the specific expertise (e.g. commercial or infill
experience) of our partners. Each joint venture is governed by an executive
committee consisting of members from the partners.
As of August 31, 2020 and November 30, 2019, our recorded investments in
Homebuilding unconsolidated entities were $940.7 million and $1.0 billion,
respectively, while the underlying equity related to our investments in
Homebuilding unconsolidated entities partners' net assets as of August 31, 2020
and November 30, 2019 were $1.2 billion and $1.3 billion, respectively. The
basis difference is primarily as a result of us contributing our investment in
three strategic joint ventures with a higher fair value than book value for an
investment in the FivePoint entity and deferring equity in earnings on land
sales to us. Included in our recorded investments in Homebuilding unconsolidated
entities is our 40% ownership of FivePoint. As of August 31, 2020 and
November 30, 2019, the carrying amounts of our investment in FivePoint were
$376.4 million and $374.0 million, respectively.
The total debt of the Homebuilding unconsolidated entities in which we have
investments was $1.1 billion as of both August 31, 2020 and November 30, 2019,
of which our maximum recourse exposure was $4.9 million and $10.8 million as of
August 31, 2020 and November 30, 2019, respectively. In most instances in which
we have guaranteed debt of a Homebuilding unconsolidated entity, our partners
have also guaranteed that debt and are required to contribute their share of the
guarantee payment. In a repayment guarantee, we and our venture partners
guarantee repayment of a portion or all of the debt in the event of a default
before the lender would have to exercise its rights against the collateral.
In connection with many of the loans to Homebuilding unconsolidated entities, we
and our joint venture partners (or entities related to them) have been required
to give guarantees of completion to the lenders. Those completion guarantees may
require that the guarantors complete the construction of the improvements for
which the financing was obtained. If the construction is to be done in phases,
the guarantee generally is limited to completing only the phases as to which
construction has already commenced and for which loan proceeds were used. If we
are required to make a payment under any guarantee, the payment would generally
constitute a capital contribution or loan to the Homebuilding unconsolidated
entity and increase our share of any funds the unconsolidated entity
distributes.
As of August 31, 2020 and November 30, 2019, the fair values of the repayment,
maintenance, and completion guarantees were not material. We believe that as of
August 31, 2020, in the event we become legally obligated to perform under a
guarantee of the obligation of a Homebuilding unconsolidated entity due to a
triggering event under a guarantee, the collateral would be sufficient to repay
at least a significant portion of the obligation or we and our partners would
contribute additional capital into the venture. In certain instances, we have
placed performance letters of credit and surety bonds with municipalities with
regard to obligations of our joint ventures (see Note 7 of the Notes to
Condensed Consolidated Financial Statements).
The following table summarizes the principal maturities of our Homebuilding
unconsolidated entities ("JVs") debt as per current debt arrangements as of
August 31, 2020 and it does not represent estimates of future cash payments that
will be made to reduce debt balances. Many JV loans have extension options in
the loan agreements that would allow the loans to be

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extended into future years.
                                          Principal Maturities of Unconsolidated JVs by Period
(In thousands)                 Total JV Debt      2020       2021        2022       Thereafter      Other
Debt without recourse to
Lennar                        $   1,088,048     49,497     211,460     164,396        662,695           -
Land seller and CDD debt              8,200          -           -         

 -              -       8,200
Maximum recourse debt
exposure to Lennar                    4,932          -           -       4,932              -           -
Debt issuance costs                 (11,930 )        -           -         

 -              -     (11,930 )
Total                         $   1,089,250     49,497     211,460     169,328        662,695      (3,730 )


Multifamily: Investments in Unconsolidated Entities
At August 31, 2020, Multifamily had equity investments in 21 unconsolidated
entities that are engaged in multifamily residential developments (of which
seven had non-recourse debt and 14 had no debt), compared to 19 unconsolidated
entities at November 30, 2019. We invest in unconsolidated entities that acquire
and develop land to construct multifamily rental properties. Through these
entities, we are focusing on developing a geographically diversified portfolio
of institutional quality multifamily rental properties in select U.S. markets.
Initially, we participated in building multifamily developments and selling them
soon after they were completed. Recently, however, we have been focused on
developing properties with the intention of retaining them. Participants in
these joint ventures have been financial partners. Joint ventures with financial
partners have allowed us to combine our development and construction expertise
with access to our partners' capital. Each joint venture is governed by an
operating agreement that provides significant substantive participating voting
rights on major decisions to our partners.
The Multifamily segment includes LMV I and LMV II, which are long-term
multifamily development investment vehicles involved in the development,
construction and property management of class-A multifamily assets. Details of
each as of and during the nine months ended August 31, 2020 are included below:
                                                              August 31, 2020
(In thousands)                                           LMV I               LMV II
Lennar's carrying value of investments             $        348,561            250,777
Equity commitments                                        2,204,016          1,257,700
Equity commitments called                                 2,137,746            861,508
Lennar's equity commitments                                 504,016            381,000
Lennar's equity commitments called                          496,082         

259,886


Lennar's remaining commitments                                7,934         

121,114


Distributions to Lennar during the nine months
ended August 31, 2020                                        23,822         

-




We regularly monitor the results of both our Homebuilding and Multifamily
unconsolidated joint ventures and any trends that may affect their future
liquidity or results of operations. We also monitor the performance of joint
ventures in which we have investments on a regular basis to assess compliance
with debt covenants. For those joint ventures not in compliance with the debt
covenants, we evaluate and assess possible impairment of our investment. We
believe all of the joint ventures were in compliance with their debt covenants
at August 31, 2020.
The following table summarizes the principal maturities of our Multifamily
unconsolidated entities debt as per current debt arrangements as of August 31,
2020 and it does not represent estimates of future cash payments that will be
made to reduce debt balances.
                                   Principal Maturities of Unconsolidated JVs by Period
(In thousands)        Total JV Debt       2020        2021         2022       Thereafter      Other
Debt without
recourse to Lennar   $    2,466,461      92,629     676,916      478,041      1,218,875            -
Debt issuance costs         (28,246 )         -           -            -              -      (28,246 )
Total                $    2,438,215      92,629     676,916      478,041      1,218,875      (28,246 )



Lennar Other: Investments in Unconsolidated Entities
As part of the sale of the Rialto investment and asset management platform, we
retained our ability to receive a portion of payments with regard to carried
interests if funds meet specified performance thresholds. We periodically
receive advance distributions related to the carried interests in order to cover
income tax obligations resulting from allocations of taxable

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income to the carried interests. These distributions are not subject to
clawbacks but will reduce future carried interest payments to which we become
entitled from the applicable funds and have been recorded as revenues.
As of August 31, 2020 and November 30, 2019, we had strategic technology
investments in unconsolidated entities of $196.1 million and $124.3 million,
respectively.
Option Contracts
We often obtain access to land through option contracts, which generally enable
us to control portions of properties owned by third parties (including land
funds) and unconsolidated entities until we have determined whether to exercise
the options.
The table below indicates the number of homesites owned and homesites to which
we had access through option contracts with third parties ("optioned") or
unconsolidated JVs (i.e., controlled homesites) at August 31, 2020 and
August 31, 2019:
                             Controlled Homesites                                             Years of
                                                                                  Total        Supply
August 31, 2020       Optioned       JVs         Total      Owned Homesites     Homesites     Owned (1)
East                   30,683       12,718       43,401             62,256       105,657
Central                14,504          122       14,626             42,785        57,411
Texas                  25,556            -       25,556             35,560        61,116
West                   14,911        2,854       17,765             59,475        77,240
Other                   1,137        7,544        8,681              2,068        10,749
Total homesites        86,791       23,238      110,029            202,144       312,173           3.8
% of total homesites                                 35 %               65 %


                             Controlled Homesites                                             Years of
                                                                                  Total        Supply
August 31, 2019       Optioned       JVs         Total      Owned Homesites     Homesites     Owned (1)
East                   24,269       16,613       40,882             68,308       109,190
Central                14,760          132       14,892             43,802        58,694
Texas                  24,049            -       24,049             37,603        61,652
West                    8,193        3,304       11,497             64,627        76,124
Other                       -        1,310        1,310              3,234         4,544
Total homesites        71,271       21,359       92,630            217,574       310,204           4.4
% of total homesites                                 30 %               70 %


(1) Based on trailing twelve months of home deliveries.




We evaluate certain option contracts for land to determine whether they are VIEs
and, if so, whether we are the primary beneficiary of certain of these option
contracts. Although we do not have legal title to the optioned land, if we are
deemed to be the primary beneficiary or make a significant deposit for optioned
land, we may need to consolidate the land under option at the purchase price of
the optioned land. Consolidated land purchase options are reflected in the
accompanying condensed consolidated balance sheets as consolidated inventory not
owned. Over the next several years, we plan to increase the controlled homesites
to 50% of our entire homesite inventory from approximately 35% as of August 31,
2020. Recently, we have undertaken several strategic land initiatives which
include acquiring fully developed homesites from regional developers and may
also include building homes in bulk for landowners who will retain them as
rental properties.
During the nine months ended August 31, 2020, consolidated inventory not owned
increased by $82.4 million with a corresponding increase to liabilities related
to consolidated inventory not owned in the accompanying condensed consolidated
balance sheet as of August 31, 2020. The increase was primarily due to the
consolidation of option contracts, partially offset by us exercising our options
to acquire land under previously consolidated contracts. To reflect the purchase
price of the inventory consolidated, we had a net reclass related to option
deposits from consolidated inventory not owned to land under development in the
accompanying condensed consolidated balance sheet as of August 31, 2020. The
liabilities related to consolidated inventory not owned primarily represent the
difference between the option exercise prices for the optioned land and our cash
deposits.
Our exposure to losses related to option contracts with third parties and
unconsolidated entities consisted of non-refundable option deposits and
pre-acquisition costs totaling $325.4 million and $320.5 million at August 31,
2020 and November 30, 2019, respectively. Additionally, we had posted $76.8
million and $75.0 million of letters of credit in lieu of cash deposits under
certain land and option contracts as of August 31, 2020 and November 30, 2019,
respectively.

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Contractual Obligations and Commercial Commitments
Our contractual obligations and commercial commitments have not changed
materially from those reported in Management's Discussion and Analysis of
Financial Condition and Results of Operations in our Annual Report on Form 10-K
for the fiscal year ended November 30, 2019. There were no outstanding
borrowings under our Credit Facility as of August 31, 2020.
(3) New Accounting Pronouncements
See Note 12 of the Notes to Condensed Consolidated Financial Statements included
under Item 1 of this Report for a discussion of new accounting pronouncements
applicable to our company.
(4) Critical Accounting Policies
We believe that there have been no significant changes to our critical
accounting policies during the nine months ended August 31, 2020 as compared to
those we disclosed in Management's Discussion and Analysis of Financial
Condition and Results of Operations included in our Annual Report on Form 10-K,
for the year ended November 30, 2019.

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