LENNAR CORP /NEW/ (LEN) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that LENNAR CORP /NEW/ surfaced in its latest filing.

• In February 2025, we completed the spin-off of Millrose, which serves as a source of recycled capital for land acquisitions and to which we transferred a significant portion of our land inventory.February 2025
• $3.1 billion revolving credit facility as of November 30, 2025, with an accordion feature that could increase it to $3.5 billion.November 30, 2025
• Unsecured delayed draw term loan facility entered in May 2025 with up to $1.7 billion availability; outstanding borrowings of $1.7 billion as of November 30, 2025.May 2025
• Warehouse borrowing facilities totaling $3.6 billion for residential and commercial mortgage lending.
• Approximately $2.1 billion of senior notes outstanding, net of debt issuance costs, as of November 30, 2025, increased by $200 million during fiscal 2025.November 30, 2025
• During fiscal 2026, we must replace or renew $3.0 billion of warehouse lines used by Financial Services, including LMF Commercial, as they mature.fiscal 2026
• Outstanding surety bonds of $5.6 billion at November 30, 2025.November 30, 2025
• January 2025 wildfires in Los Angeles exacerbated increased insurance costs and difficulties in obtaining homeowners’ insurance in California wildfire-prone areas.January 2025
• 100% of residential mortgage loans made in 2025 were to buyers of homes we built.2025
• U.S. government tariffs on imported lumber, steel, aluminum, solar panels and washing machines have increased construction costs and disrupted supply chains.
• Conflicts involving Ukraine and Israel have led to market disruptions including significant volatility in commodity prices, credit and capital markets, and supply chain interruptions.
• Investments in Five Point Holdings, LLC, a publicly traded company developing three large multi-use master planned communities in California.
• We have the right to retain the deposit if the homebuyer does not complete the purchase; cancellation reasons include inability to obtain mortgage financing or our inability to complete and deliver the home within the specified time; with the increase in interest rates, we have experienced an increase in cancellation rates.