Lennar (LEN) Risk Factor Changes

We have made investments in companies that are engaged in applying technology to improve the homebuilding industry and real estate related aspects of the financial services industry.

Our homebuilding business is seasonal in nature and generally reflects higher levels of new home order activity in our second fiscal quarter and increased deliveries in the second half of our fiscal year.

ventures are located outside the United States.

We rely extensively on information technology ("IT") systems, including Internet sites, data hosting facilities and other hardware and software platforms, some of which are hosted by third parties, to assist in conduc…

We have investments in funds and other investment vehicles managed by Rialto Capital Management, a company we sold in November 2018, investments in a number of companies that are applying technology to various aspects…

Although we expect all of our associates, officers and directors to comply at all times with all applicable laws, rules and regulations, there may be instances in which subcontractors or others through whom we do busi…

certain areas in which we operate.

During the past several years, the U.S.

Several of the joint ventures in which we participate will in the relatively near future be required to repay, refinance, renegotiate or extend their borrowings.

During fiscal 2026, we will have to replace or renew a total of $3.0 billion of warehouse lines used by Financial Services, including LMF Commercial, as they mature.

As of November 30, 2025, we had outstanding senior notes which we had sold into the capital markets over a number of years totaling $2.1 billion.

A significant portion of the land inventory that we control is held by land banks, including the portion of our inventory that was transferred to Millrose in connection with the Millrose Spin-Off.

We have made a strategic decision to increase the portion of our potential land inventory that we control through options or contracts and reduce the land that we own.

In February 2025, we completed the spin-off Millrose, which serves as a source of recycled capital for land acquisitions.

We could be hurt if land banks are not able to raise investor funds needed to finance land acquisition to meet out demand.

Our business requires us to finance much of the cost of developing our residential communities.

We incur many costs even before we begin to build homes in a community.

Land development and construction are inherently dangerous.

The United States has experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and public perception of health risk.

We are constantly acquiring options to purchase land, for use in our homebuilding operations.

Our strategies for our core homebuilding and mortgage finance businesses, and any related initiatives or actions, may not be successful.

Our business success is dependent upon the reputation of the Lennar brand and its association with quality and integrity.

including, among others, seasonal homebuying patterns, the timing of home closings and land sales and weather-related problems.

these funds and businesses.

If the planned Millrose Spin-Off is completed, we may lose access to the land or homesites we would contribute to Millrose or that Millrose acquires in the future pursuant to our specifications in the event of lender…

to the disputed homesites, and we would not be able to satisfy our obligations with respect to those contracts.

In particular, if the planned Millrose Spin-Off is completed, we expect to transfer a significant portion of our inventory of undeveloped and partially developed land, as well as some finished homesites, to Millrose,…

If completed, in connection with the Millrose Spin-Off, we expect to enter into a number of agreements with Millrose, pursuant to which Millrose will provide Lennar with land acquisition and horizontal development fin…

If the planned Millrose Spin-Off is completed, Millrose may fail to perform under various transaction agreements that we expect to enter into in connection with the Millrose Spin-Off and our homebuilding operations co…

In addition, whether or not the Millrose Spin-Off is ultimately completed, we have incurred, and expect to continue to incur, costs associated with the planned transaction and the pendency of the planned transaction h…

We previously announced that we expect to spin off a significant portion of our land assets from our balance sheet through the spin-off of Millrose.

The Millrose Spin-Off of much of our land assets may not occur on the timeline we expect or at all and we may not realize some or all of the expected benefits from this transaction even if completed.

Although we expect all of our associates, officers and directors to comply at all times with all applicable laws, rules and regulations, there may be instances in which subcontractors or others through whom we do busi…

During the past several years, the U.S.

We formed and intend to spin off Millrose to make it a recycling source of land acquisition funding.

worksites may result in penalties for non-compliance with relevant regulatory requirements and in our subcontractors having difficulty attracting the workers they need as well as in a negative impact to our reputation.

We historically have sold significant numbers of homes in communities in the United States to people who are not residents of the United States, and some large investors in our multifamily development and single-famil…

Our obligation to comply with the laws and regulations under which we operate, and our need to ensure that our associates, subcontractors and other agents comply with these laws and regulations, could result in delays…

least a portion of the funds the joint ventures need to be able to repay the borrowings and to finance the activities for which they were incurred, which could adversely impact our financial position.

We may lose access to the land or homesites held by land banks in the event of lender foreclosures or bankruptcy proceedings.

Additionally, if in the future we are unable to identify or to develop and maintain the necessary relationships with suitable land banks, including Millrose, we will not be able to fully implement our land-light busin…

including while we seek legal enforcement.

In connection with the Millrose Spin-Off, we transferred a significant portion of our inventory of undeveloped and partially developed land, as well as some finished homesites, to Millrose, which is an independent, ex…