3rd Quarter 2024 Highlights – comparisons to the prior generation quarter

• Web income in keeping with diluted proportion greater 10% to $4.26
  • $3.90, except for mark-to-market features on era investments and one-time pieces within the Corporate’s Multifamily department
• Web income greater 5% to $1.2 billion
• Unutilized orders greater 5% to twenty,587 properties
• Backlog of 16,944 properties with a greenback price of $7.7 billion
• Deliveries greater 16% to 21,516 properties
• General revenues of $9.4 billion
• Homebuilding running income of $1.5 billion
  • Improper margin on house gross sales of twenty-two.5%
  • S,G&A bills as a % of revenues from house gross sales of 6.7%
  • Web margin on house gross sales of 15.8%
• Monetary Services and products running income of $144 million
• Multifamily running income of $79 million
• Lennar Alternative running income of $20 million
• Homebuilding money and money equivalents of $4.0 billion
• Years provide of owned homesites of one.1 years and regulated homesites of 81%
• Incorrect remarkable borrowings beneath the Corporate’s $2.2 billion revolving credit score facility
• Homebuilding debt to overall capital of seven.6%
• Repurchased 3.4 million stocks of Lennar ordinary secure for $519 million

MIAMI, Sept. 19, 2024 /PRNewswire/ — Lennar Company (NYSE: LEN and LEN.B), certainly one of the society’s chief homebuilders, as of late reported effects for its 3rd quarter ended August 31, 2024. 3rd quarter web income resulting from Lennar in 2024 had been $1.2 billion, or $4.26 in keeping with diluted proportion, in comparison to 3rd quarter web income resulting from Lennar in 2023 of $1.1 billion, or $3.87 in keeping with diluted proportion. Except for mark-to-market features of $39 million on era investments and one-time pieces of $89 million within the Corporate’s Multifamily department, 3rd quarter web income resulting from Lennar in 2024 had been $1.1 billion, or $3.90 in keeping with diluted proportion. Except for mark-to-market losses of $16 million on era investments, 3rd quarter web income resulting from Lennar in 2023 had been $1.1 billion or $3.91 in keeping with diluted proportion.

Stuart Miller, Government Chairman and Co-Leading Government Officer of Lennar, mentioned, “We are pleased to report another solid quarter backed by an economic environment that remains very constructive for homebuilders. Employment was strong, housing supply remained chronically short due to production deficits of over a decade, and demand was solid driven by strong household formation. Although affordability continued to be tested during the quarter, purchasers remained responsive to increased sales incentives, resulting in a 16% increase in our deliveries and a 5% increase in our new orders year over year.” 

“This week, the Fed decreased interest rates which should start to enhance affordability and accelerate the already strong demand for both new and existing homes. While strong demand, enabled by incentives and mortgage rate buydowns, has driven the new home market over the past two years, we fully expect an even stronger, and more broad-based demand cycle, as rates move lower. Lower rates and controlled inflation will likely boost confidence.”

“Against this backdrop, earnings were $1.2 billion, or $4.26 per diluted share. We delivered 21,516 homes in our third quarter and our new orders were 20,587. Our average sales price, net of incentives, per home delivered was $422,000 in the third quarter, slightly down from last year, and our homebuilding gross margin in the third quarter was 22.5%, mildly lower than expectations, and offset by SG&A expenses of 6.7%, which were better than expectations, resulting in a 15.8% net margin.”

“Driven by this quarter’s strong operating performance, we constructively allocated capital while we continued to strengthen and fortify our balance sheet. During the quarter, we repurchased $519 million of our common stock, had no outstanding borrowings on our $2.2 billion revolver and cash of $4.0 billion, ending the quarter with homebuilding debt to total capital of 7.6%. With cash on hand exceeding our debt, and with overall liquidity of $6.2 billion, our balance sheet remains extremely strong. Against that backdrop, we remain focused on our ‘land strategies’ initiatives in order to intensify our land light focus and assure consistency of execution now and in the future as we embrace an ever-more focused manufacturing model for Lennar.”

Jon Jaffe, Co-Leading Government Officer and President of Lennar, mentioned, “Operationally, our starts pace and sales pace were 5.4 homes and 5.5 homes per community in the third quarter, respectively, as we continue to move closer to an even flow operating model. Our cycle time was down to 140 days, or 23% lower year over year, as our production first focus has positively impacted our production times, while our inventory turn improved to 1.6 times reflecting broader efficiencies. Concurrently, the Lennar Machine continued to carefully match our sales pace to our production pace using our digital marketing and dynamic pricing models.”

“During the quarter, we continued the migration to our land light strategy. This was evidenced by our years supply of owned homesites improving to 1.1 years from 1.5 years last year and our controlled homesite percentage increasing to 81% from 73% year over year. These results drove our return on inventory to 31.3%, a year-over-year improvement of 320 basis points.”

Mr. Miller concluded, “We continue to remain enthusiastic about our current execution and our future. We have remained focused on our operating strategies, while at the same time being observant of current economic and market trends. As we look ahead to our fourth quarter, we expect to deliver between 22,500 and 23,000 homes with a gross margin flat with our third quarter. We will continue to fortify our balance sheet with significant liquidity and operate from a position of strength, thus enabling us to continue to execute on our core strategies to drive strong cash flow and higher returns.”

RESULTS OF OPERATIONS
THREE MONTHS ENDED AUGUST 31, 2024 COMPARED TO
THREE MONTHS ENDED AUGUST 31, 2023

Homebuilding

Revenues from house gross sales greater 9% within the 3rd quarter of 2024 to $9.0 billion from $8.3 billion within the 3rd quarter of 2023. Revenues had been upper basically because of a 16% building up within the selection of house deliveries, partly offset by way of a 6% cut within the moderate gross sales worth of houses delivered. Unutilized house deliveries greater to 21,516 properties within the 3rd quarter of 2024 from 18,559 properties within the 3rd quarter of 2023. The common gross sales worth of houses delivered used to be $422,000 within the 3rd quarter of 2024, in comparison to $448,000 within the 3rd quarter of 2023. The cut in moderate gross sales worth of houses delivered within the 3rd quarter of 2024 in comparison to the similar duration latter generation used to be basically because of pricing to marketplace via an greater worth of incentives and product combine.

Improper margins on house gross sales had been $2.0 billion, or 22.5%, within the 3rd quarter of 2024, in comparison to $2.0 billion, or 24.4%, within the 3rd quarter of 2023. All the way through the 3rd quarter of 2024, rude margins reduced basically as a result of revenues in keeping with sq. understructure reduced moment land prices greater generation over generation, which used to be partly offset by way of a cut in prices in keeping with sq. understructure because of decrease subject matter prices because the Corporate endured to concentrate on development price financial savings.

Promoting, common and administrative bills had been $601 million within the 3rd quarter of 2024, in comparison to $583 million within the 3rd quarter of 2023. As a proportion of revenues from house gross sales, promoting, common and administrative bills reduced to six.7% within the 3rd quarter of 2024, from 7.0% within the 3rd quarter of 2023, basically because of a cut in dealer commissions and advantages of the Corporate’s era efforts.

Monetary Services and products

Working income for the Monetary Services and products department had been $144 million within the 3rd quarter of 2024, in comparison to $148 million within the 3rd quarter of 2023. The cut in running income used to be basically because of decrease lock quantity and margin within the loan industry, partly offset by way of upper quantity within the name industry because of greater deliveries generation over generation.

Ancillary Companies

Working income for the Multifamily department had been $79 million within the 3rd quarter of 2024, in comparison to an running lack of $9 million within the 3rd quarter of 2023. The rise in running income used to be because of a $179 million one-time web acquire from the sale of property within the Corporate’s LMV Treasure I, partly offset by way of a one-time $90 million write-down of non-core property because the Corporate makes a speciality of straight away monetizing those property. Working income for the Lennar Alternative department had been $20 million within the 3rd quarter of 2024, in comparison to an running lack of $26 million within the 3rd quarter of 2023. The Lennar Alternative running income for the 3rd quarter of 2024 had been because of mark-to-market features at the Corporate’s publicly traded era investments.

Tax Price

Within the 3rd quarter of 2024 and 2023, the Corporate had tax provisions of $348 million and $358 million, respectively, which ended in an general efficient source of revenue tax charge of 23.0% and 24.4%, respectively. For each sessions, the Corporate’s efficient source of revenue tax charge integrated situation source of revenue tax expense and non-deductible government reimbursement, partly offset by way of power environment friendly house and sun tax credit.

Proportion Repurchases

Within the 3rd quarter of 2024, the Corporate repurchased 3.4 million stocks of its ordinary secure for $519 million at a median proportion worth of $154.77.

Liquidity

At August 31, 2024, the Corporate had $4.0 billion of Homebuilding money and money equivalents and refuse remarkable borrowings beneath its $2.2 billion revolving credit score facility, thereby offering roughly $6.2 billion of to be had capability.

Steering

Refer to are the Corporate’s anticipated result of its homebuilding and fiscal services and products actions for the fourth quarter of 2024:

About Lennar

Lennar Company, based in 1954, is likely one of the society’s chief developers of property properties for all generations. Lennar builds inexpensive, move-up and energetic grownup properties basically beneath the Lennar emblem identify. Lennar’s Monetary Services and products department supplies loan financing, name and ultimate services and products basically for consumers of Lennar’s properties and, via LMF Industrial, originates loan loans tie basically by way of industrial actual property homes right through america. Lennar’s Multifamily department is a national developer of high quality multifamily condominium homes. LEN^X drives Lennar’s era, innovation and strategic investments. For more info about Lennar, please consult with www.lennar.com. 

Be aware Referring to Ahead-Taking a look Statements: One of the most statements on this press reduce are “forward-looking statements,” as that time period is outlined within the Non-public Securities Litigation Reform Work of 1995, together with, however now not restricted to, statements with regards to the homebuilding marketplace and alternative markets by which we take part, in addition to our anticipated effects and steerage. You’ll be able to establish forward-looking statements by way of the truth that those statements don’t relate strictly to ancient or tide issues. In lieu, forward-looking statements relate to expected or anticipated occasions, actions, tendencies or effects. Accordingly, those forward-looking statements will have to be evaluated with attention given to the numerous dangers and uncertainties inherent in our industry that would purpose latest effects and occasions to vary materially from the ones expected by way of the forward-looking statements. We want to warning readers to not park undue reliance on any forward-looking statements, which can be expressly certified of their entirety by way of this cautionary remark and discuss best as of the week made. Notable elements that would purpose variations between expected and latest effects come with slowdowns in actual property markets in areas the place now we have vital Homebuilding or Multifamily construction actions or personal a considerable selection of single-family properties for hire; reduced call for for our houses, both on the market or for hire, or Multifamily condominium residences; the prospective affect of inflation; the affect of greater price of loan financing for homebuyers, greater rates of interest or greater pageant within the loan trade; provide shortages and greater prices homogeneous to development fabrics, together with lumber, and exertions; price will increase homogeneous to actual property taxes and insurance coverage; the impact of greater rates of interest in regards to our finances’ borrowings at the willingness of the finances to spend money on fresh tasks; discounts available in the market price of our investments in people firms; herbal failures or deadly occasions for which our insurance coverage won’t serve ample protection; our incapability to effectively explode our methods, together with our land sunny technique, and our deliberate spin-off; a abatement within the price of the land and residential inventories we preserve and ensuing conceivable while writedowns of the sporting price of our actual property property; the forfeiture of deposits homogeneous to land acquire choices we make a decision to not workout; the results of people condition problems akin to a significant epidemic or pandemic that can have a detrimental affect at the economic system and on our companies; conceivable detrimental leads to felony complaints; situations within the capital, credit score and fiscal markets; adjustments in regulations, laws or the regulatory order affecting our industry, and the alternative dangers and uncertainties described in our filings from week to week with the Securities and Change Fee, together with the ones integrated beneath the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most up-to-date Annual File on Method 10-Ok filed on January 26, 2024, as amended by way of our Annual File on Method 10-Ok/A filed on April 25, 2024 and Quarterly Experiences on Method 10-Q. We adopt refuse legal responsibility to replace or revise any forward-looking statements, whether or not because of fresh knowledge, while occasions, or in a different way.

A convention name to talk about the Corporate’s 3rd quarter income shall be held at 11:00 a.m. Japanese Life on Friday, September 20, 2024. The decision shall be broadcast survive the Web and can also be accessed during the Corporate’s site at buyers.lennar.com. If you’re not able to take part within the convention name, the decision shall be archived at buyers.lennar.com for 90 days. A replay of the convention name can also be to be had nearest that pace by way of calling 203-369-3829 and getting into 5723593 because the affirmation quantity.

Touch:
Ian Frazer
Investor Members of the family
Lennar Company
(305) 485-4129

SOURCE Lennar Company

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