LENNAR CORP /NEW/ (LEN)

Lennar Corporation is one of the largest homebuilders in the United States by deliveries, revenues and net earnings. It also originates residential and commercial mortgage loans, provides title insurance and closing services, and develops multifamily rental properties. It sponsors and manages funds and joint ventures that develop and own multifamily rental properties, as well as a fund that owns single-family rental properties, and it invests in companies applying technology to homebuilding and real estate-related financial services. The company was founded in Miami in 1954, went public in 1971, and has grown through acquisitions including U.S. Home, WCI Communities, CalAtlantic and, in February 2025, Rausch Coleman Homes. Homebuilding generated about $32 billion, or roughly 94% of consolidated revenues, in fiscal 2025.

Its reportable segments are Homebuilding (East, Central, South Central and West, plus an Other group of urban divisions and investments including FivePoint), Financial Services, Multifamily and Lennar Other. Homebuilding builds and sells single-family attached and detached homes, mainly under the Lennar brand, with features such as its Everything's Included and Next Gen offerings. It delivered 82,583 homes in fiscal 2025 at an average sales price of $391,000, and was building in 1,708 communities at year-end. Financial Services includes Lennar Mortgage, which originated about 55,900 loans totaling $20.0 billion, title and closing services licensed in 37 states, and LMF Commercial, which originates and securitizes commercial mortgage loans of generally $5 million to $50 million. Multifamily has developed 128 communities with about 39,300 rental units since 2011, and at year-end it managed four funds and 21 active joint ventures. In December 2025 it sold a majority interest in Quarterra to TPG. The Upward America venture acquires and manages single-family rental communities, with $1.0 billion of committed equity, and has a joint venture and property management agreement with Invitation Homes. Lennar Other holds strategic technology investments with a book value of $581.8 million.

Homes are sold to first-time, move-up, active adult, luxury and multi-generational buyers, from urban infill to suburban golf course communities. Sales come through on-site new home consultants, independent realtors, virtual tours and increasingly digital marketing. Backlog was $5.2 billion at November 30, 2025, and the cancellation rate was 14%. Lennar's mortgage subsidiaries financed 84% of its homebuyers who obtained mortgage financing in areas where they offered services. Substantially all loans are sold into the secondary market. Closing services covered about 86,300 transactions in fiscal 2025.

Lennar uses independent subcontractors for most land development and virtually all home construction, with a relatively small labor force and no heavy construction equipment. It combines local division management with centralized strategy, financing, risk management and land decisions. It is pursuing a land-light model: 98% of homesites were controlled through options with land banks, sellers and joint ventures at November 30, 2025. In February 2025 it spun off Millrose Properties, contributing $5.6 billion of land assets and $1.0 billion of cash, and it disposed of its remaining Millrose shares in an exchange offer in November 2025. Construction is financed mainly with operating cash and historically unsecured corporate debt, and mortgage activities use warehouse facilities with $3.3 billion of capacity.