Company profile

Corporate

We are a national homebuilder that operates in various states with deliveries of 26,563 new homes in fiscal 2016. Our company was founded as a local Miami homebuilder in 1954. We completed our initial public offering in 1971 and listed our common stock on the New York Stock Exchange in 1972. During the 1980s and 1990s, we entered and expanded operations in a number of homebuilding markets, including California, Florida and Texas, through both organic growth and acquisitions, such as Pacific Greystone Corporation in 1997. In 1997, we completed the spin-off of our then commercial real estate business, LNR Property Corporation. In 2000, we acquired U.S. Home Corporation, which expanded our operations into New Jersey, Maryland, Virginia, Minnesota and Colorado and strengthened our position in other states. From 2002 through 2005, we acquired several regional homebuilders, which brought us into new markets and strengthened our position in several existing markets. From 2010 through 2013, we expanded our homebuilding operations into the Atlanta, Oregon, Seattle and Nashville markets.

Through the most recent economic downturn, we strengthened and expanded our competitive position through strategic purchases of land at favorable prices. We are currently focused on maintaining moderate growth in community count and homes sales, reducing selling, general and administrative expenses by using innovative strategies to reduce customer acquisition costs, as well as on our soft-pivot land strategy, shortening the average time between when we acquire land and when we expect to begin building homes on it.

Homebuilding

Our homebuilding operations include the construction and sale of single-family attached and detached homes as well as the purchase, development and sale of residential land directly and through unconsolidated entities in which we have investments. New home deliveries, including deliveries from unconsolidated entities, were 26,563 in fiscal 2016, compared to 24,292 in fiscal 2015 and 21,003 in fiscal 2014. We primarily sell single-family attached and detached homes in communities targeted to first-time homebuyers, move-up homebuyers and active adult homebuyers. The average sales price of a Lennar home varies depending on product and geographic location. For fiscal 2016, the average sales price was $361,000, compared to $344,000 in fiscal 2015 and $326,000 in fiscal 2014.

We operate primarily under the Lennar brand name. Our homebuilding mission is focused on the profitable development of residential communities. Key elements of our strategy include:

  • Strong Operating Margins - We believe our operating leverage combined with our attractive land purchases position us for strong operating margins.
  • Everything’s Included® Approach - We are focused on distinguishing our products, including through our Everything’s Included® approach, which maximizes our purchasing power and enables us to include luxury features as standard items in our homes.
  • Innovative Homebuilding - We are constantly innovating the homes we build to create products that better meet our customers' needs and desires. Our Next Gen® home, or a home within a home, provides a unique new home solution for multi-generational households as homebuyers often need to accommodate children and parents to share the cost of their mortgage and other living expenses. In fiscal 2016, we delivered 1,186 Next Gen® homes representing an increase of 18% from the prior year and 4% of total home deliveries, excluding unconsolidated entities. The average sales price of the Next Gen® homes delivered in fiscal 2016 was $461,000, which is 28% above the average sales price of total home deliveries, excluding unconsolidated entities.
  • Flexible Operating Structure - Our local operating structure gives us the flexibility to make operating decisions based on local homebuilding conditions and customer preferences, while our centralized management structure provides oversight for our homebuilding operations.

Financial Services

We offer conforming conventional, FHA-insured and VA-guaranteed residential mortgage loan products and other home mortgage products to buyers of our homes and others through our financial services subsidiary, Universal American Mortgage Company, LLC, which includes Universal American Mortgage Company, LLC, d/b/a Eagle Home Mortgage, from locations in most of the states in which we have homebuilding operations, as well as some other states. In fiscal 2016, our financial services subsidiaries provided loans to 82% of our homebuyers who obtained mortgage financing in areas where we offered services.

We also provide title insurance and closing services to our homebuyers and others. During 2016, we provided title and closing services for approximately 116,000 real estate transactions, and issued approximately 298,900 title insurance policies through our underwriter, North American Title Insurance Company.

Rialto

The Rialto segment is a commercial real estate, investment management, and finance company. Rialto’s primary focus is to manage third-party capital and to originate commercial mortgage loans which it sells into securitizations. It also has invested its own capital in mortgage loans, properties and real estate related securities.

Multifamily

We have been actively involved, primarily through unconsolidated entities, in the development, construction and property management of multifamily rental properties. Our Lennar Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.

During the year ended November 30, 2016, our Lennar Multifamily segment continued to grow as a leading developer of apartment communities across the country with interests in 53 communities with development costs of approximately $4.8 billion, of which five communities were completed and operating, 13 communities were partially completed and leasing, 24 communities were under construction and the remaining communities were either owned or under contract. As of November 30, 2016, our Lennar Multifamily segment had a pipeline of future projects totaling $2.8 billion in assets across a number of states that will be developed primarily by unconsolidated entities.

Diversified national platform

U.S Map

Total Revenue (millions)

Total Revenue (millions) - 2011-$3095,2012-$4105,2013-$5935,2014-$7780,2015-$9474,2016-$10950

HB Operating Margin %

HB Operating Margin % - 2011-7%,2012-11%,2013-14%,2014-15%,2015-14%,2016-14%

Pre-tax Earnings

Pre-tax Earnings - 2011-$98,2012-$222,2013-$682,2014-$970,2015-$1210,2016-$1330

Deliveries

Deliveries - 2011-10845,2012-13802,2013-18290,2014-21003,2015-24292,2016-26563

Shareholders’ Equity (millions)

Shareholders’ Equity (millions) - 2011-$2696,2012-$3415,2013-$4169,2014-$4827,2015-$5649,2016-$7026

HB Debt/Cap

Pre-tax Earnings - 2011-55.5%,2012-54.0%,2013-50.2%,2014-$49.1%,2015-47.1%,2016-39.4%
Related Links
Contact us

Investor requests:
Allison Bober

700 N.W. 107th Avenue
Miami, FL 33172
305-559-4000 – Phone
305-229-6452 – Fax
Allison.Bober@lennar.com

Media request:
Marshall Ames

700 N.W. 107th Avenue
Miami, FL 33172
800-741-4663 – Phone
305-228-8383 – Fax
Marshall.Ames@lennar.com

Transfer agent:
Computershare Investor Services

P.O Box 505000
Louisville, KY 40233 
877-373-6374 – Phone
www.computershare.com