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Lennar Reports Second Quarter EPS of $0.61

                  Lennar Reports Second Quarter EPS of $0.61

PR Newswire

MIAMI, June 26, 2014

MIAMI, June 26, 2014 /PRNewswire/ --

  oNet earnings of $137.7 million, or $0.61 per diluted share, compared to
    net earnings of $137.4 million, or $0.61 per diluted share, which included
    a partial reversal of the state deferred tax asset valuation allowance of
    $41.3 million, or $0.18 per diluted share
  oDeliveries of 4,987 homes – up 12%
  oNew orders of 6,183 homes – up 8%; new orders dollar value of $2.0 billion
    – up 21%
  oBacklog of 6,858 homes – up 11%; backlog dollar value of $2.4 billion – up
    26%
  oRevenues of $1.8 billion – up 27%
  oGross margin on home sales of 25.5% – improved 140 basis points
  oS,G&A expenses as a % of revenues from home sales of 10.8% – improved 10
    basis points
  oOperating margin on home sales of 14.7% – improved 140 basis points
  oLennar Homebuilding operating earnings of $234.5 million, compared to
    $159.8 million
  oLennar Financial Services operating earnings of $18.3 million, compared to
    $29.2 million
  oRialto Investments operating earnings of $13.4 million (including an add
    back of $17.1 million of net loss attributable to noncontrolling
    interests), compared to $2.8 million (net of $5.7 million of net earnings
    attributable to noncontrolling interests)
  oLennar Multifamily start-up operating loss of $7.2 million, compared to
    $1.4 million
  oLennar Homebuilding cash and cash equivalents of $628 million
  oNo outstanding borrowings under the $950 million credit facility
  oIn June 2014, increased the credit facility to $1.5 billion, including a
    $263 million accordion feature, and extended maturity to June 2018
  oLennar Homebuilding debt to total capital, net of cash and cash
    equivalents, of 48.0%

Lennar Corporation (NYSE: LEN and LEN.B),one ofthe nation's largest
homebuilders, today reported results for its second quarter ended May31,
2014. Second quarter 2014 net earnings attributable to Lennar were $137.7
million, or $0.61 per diluted share, compared to second quarter 2013 net
earnings attributable to Lennar of $137.4 million, or $0.61 per diluted share,
which included a partial reversal of the state deferred tax asset valuation
allowance of $41.3 million, or $0.18 per diluted share.

Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "We are
extremely pleased with our operating results in the second quarter.Our core
homebuilding business is hitting on all cylinders.Fueled by a 14% increase in
our average sales price and continued momentum from our land acquisition
strategy, our gross and operating margins increased to 25.5% and 14.7%,
respectively, the highest second quarter margins in the Company's history."

Mr. Miller continued, "While the spring selling season was softer than
anticipated by us and the investor community, the homebuilding recovery
continued its progression at a slow and steady pace. The fundamentals of the
homebuilding industry remain strong driven by high affordability levels,
favorable monthly payment comparisons to rentals and overall supply shortages.
Demand in most of our markets continues to outpace supply, which is
constrained by limited land availability."

"Complementing our core homebuilding business, our multifamily rental segment
has continued to mature. With a geographically diversified pipeline exceeding
$4 billion and 17,000 apartments, this segment is positioned to become a
meaningful contributor to our earnings. We expect to sell our first apartment
community in the third quarter and should begin to have a more consistent
pattern of apartment property sales, starting in the second half of
2015.Meanwhile, Rialto has continued its strategic growth to becoming a best
in class asset manager.Rialto's fund investments are poised for strong long
term returns and its mortgage conduit business continues to provide steady,
current earnings."

Mr. Miller concluded, "While our homebuilding business remains the primary
driver of our earnings growth, we are extremely well positioned across all of
our platforms to capitalize on the opportunities of a recovering market."

RESULTS OF OPERATIONS

THREE MONTHS ENDED MAY 31, 2014 COMPARED TO
THREE MONTHS ENDED MAY 31, 2013

Lennar Homebuilding

Revenues from home sales increased 28% in the second quarter of 2014 to $1.6
billion from $1.3 billion in the second quarter of 2013. Revenues were higher
primarily due to a 12% increase in the number of home deliveries, excluding
unconsolidated entities, and a 14% increase in the average sales price of
homes delivered. New home deliveries, excluding unconsolidated entities,
increased to 4,976 homes in the second quarter of 2014 from 4,449 homes in the
second quarter of 2013. There was an increase in home deliveries in all of the
Company's Homebuilding segments, except in the Company's Homebuilding
Southeast Florida segment. The decrease in home deliveries in the Homebuilding
Southeast Florida segment was primarily due to a higher mix of start-up
communities. The average sales price of homes delivered increased to $322,000
in the second quarter of 2014 from $283,000 in the second quarter of 2013.
Sales incentives offered to homebuyers were $20,300 per home delivered in the
second quarter of 2014, or 5.9% as a percentage of home sales revenue,
compared to $20,200 per home delivered in the second quarter of 2013, or 6.7%
as a percentage of home sales revenue, and $21,300 per home delivered in the
first quarter of 2014, or 6.3% as a percentage of home sales revenue.

Gross margins on home sales were $409.6 million, or 25.5%, in the second
quarter of 2014, compared to $303.3 million, or 24.1%, in the second quarter
of 2013. Gross margin percentage on home sales improved compared to the second
quarter of 2013, primarily due to a decrease in sales incentives offered to
homebuyers as a percentage of revenue from home sales, an increase in the
average sales price of homes delivered, a greater percentage of deliveries
from the Company's new higher margin communities (communities where land was
acquired subsequent to November 30, 2008) and $9.6 million of insurance
recoveries and other nonrecurring items, partially offset by an increase in
materials, labor and land costs. Gross profits on land sales totaled $5.6
million in the second quarter of 2014, compared to $2.7 million in the second
quarter of 2013.

Selling, general and administrative expenses were $173.1 million in the second
quarter of 2014, compared to $136.6 million in the second quarter of 2013. As
a percentage of revenues from home sales, selling, general and administrative
expenses improved to 10.8% in the second quarter of 2014, from 10.9% in the
second quarter of 2013.

Lennar Homebuilding equity in earnings from unconsolidated entities was $0.4
million in the second quarter of 2014, compared to $13.5 million in the second
quarter of 2013. In the second quarter of 2013, Lennar Homebuilding equity in
earnings from unconsolidated entities related to the Company's share of
operating earnings of Lennar Homebuilding unconsolidated entities, primarily
as a result of sales of homesites to third parties by one unconsolidated
entity that resulted in $13.0 million of equity in earnings.

Lennar Homebuilding other income, net, totaled $2.3 million in the second
quarter of 2014, compared to $2.1 million in the second quarter of 2013.

Lennar Homebuilding interest expense was $49.2 million in the second quarter
of 2014 ($38.6 million was included in cost of homes sold, $0.3 million in
cost of land sold and $10.3 million in other interest expense), compared to
$54.8 million in the second quarter of 2013 ($29.0 million was included in
cost of homes sold, $0.7 million in cost of land sold and $25.1 million in
other interest expense). Interest expense decreased primarily due to an
increase in qualifying assets eligible for interest capitalization, partially
offset by an increase in the Company's outstanding debt and an increase in
home deliveries.

Lennar Financial Services

Operating earnings for the Lennar Financial Services segment were $18.3
million in the second quarter of 2014, compared to $29.2 million in the second
quarter of 2013. The decrease in profitability was primarily due to a more
competitive environment as a result of a significant decrease in refinance
transactions, which led to lower profit per transaction in the segment's
mortgage operations and a decrease in volume in the segment's title
operations.

Rialto Investments

Operating earnings for the Rialto Investments ("Rialto") segment were $13.4
million in the second quarter of 2014 (which is comprised of a $3.7 million
operating loss and an add back of $17.1 million of net loss attributable to
noncontrolling interests), compared to operating earnings of $2.8 million
(which included $8.5 million of operating earnings offset by $5.7 million of
net earnings attributable to noncontrolling interests) in the second quarter
of 2013.

Revenues in this segment were $54.4 million in the second quarter of 2014,
which consisted primarily of securitization revenue and interest income from
Rialto Mortgage Finance ("RMF"), Rialto's new loan origination and
securitization business, which primarily accounted for the increase in
revenues in the second quarter of 2014, interest income associated with the
Rialto segment's portfolio of real estate loans and fees for managing and
servicing assets. This compared to revenues of $25.7 million in the second
quarter of 2013, which consisted primarily of accretable interest income
associated with the segment's portfolio of real estate loans and fees for
managing and servicing assets.

Expenses in this segment were $79.6 million in the second quarter of 2014,
which consisted primarily of loan impairments of $33.9 million, primarily
associated with the segment's FDIC loan portfolio (before noncontrolling
interests), costs related to RMF, interest expense and other general and
administrative expenses, compared to expenses of $28.3 million in the second
quarter of 2013, which consisted primarily of costs related to its portfolio
operations, loan impairments of $3.5 million primarily associated with the
segment's FDIC loan portfolio (before noncontrolling interests), and other
general and administrative expenses. Expenses increased primarily due to an
increase in loan impairments due to changes in the estimated cash flows
expected to be collected on the segment's loan portfolios, increases in
securitization expenses and general and administrative expenses related to RMF
and interest expense related to Rialto's issuance of senior notes in the
fourth quarter of 2013.

Rialto Investments equity in earnings from unconsolidated entities were $17.9
million and $4.5 million, respectively, in the second quarter of 2014 and
2013, which were primarily related to the Company's share of earnings from the
Rialto real estate funds.

In the second quarter of 2014, Rialto Investments other income, net, was $3.6
million, which consisted primarily of net realized gains on the sale of real
estate owned ("REO") of $14.2 million, rentaland other income, partially
offset by expenses related to owning and maintaining REO and other expenses.
In the second quarter of 2013, Rialto Investments other income, net, was $6.6
million, which consisted primarily of net realized gains on the sale of REO of
$18.5 million and rental income, partially offset by expenses related to
owning and maintaining REO.

Lennar Multifamily

Operating loss for the Lennar Multifamily segment was $7.2 million in the
second quarter of 2014, compared to $1.4 million in the second quarter of
2013. The operating loss in Lennar Multifamily primarily related to general
contractor expenses and general and administrative expenses of the segment,
partially offset by general contractor and management fee income.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were $38.3 million, or 2.1% as a
percentage of total revenues, in the second quarter of 2014, compared to $33.9
million, or 2.4% as a percentage of total revenues, in the second quarter of
2013. As a percentage of total revenues, corporate general and administrative
expenses improved due to increased operating leverage.

Noncontrolling Interests

Net earnings (loss) attributable to noncontrolling interests were ($15.1)
million and $5.4 million in the second quarter of 2014 and 2013, respectively,
which were primarily related to net earnings (loss) attributable to
noncontrolling interests associated with the FDIC's interest in the portfolio
of real estate loans that the Company acquired in partnership with the FDIC.

Income Taxes

During the second quarter of 2014, the Company had an $81.0 million provision
for income taxes, compared to a $19.5 million net tax provision in the second
quarter of 2013, which included a tax provision of $60.8 million primarily
related to second quarter 2013 pre-tax earnings, partially offset by the
reversal of $41.3 million of its valuation allowance.

Credit Facility

In June 2014, the Company increased the aggregate principal amount of its
unsecured revolving credit facility (the "Credit Facility") from $950 million
to $1.5 billion, which includes a $263 million accordion feature, subject to
additional commitments, and extended the Credit Facility's maturity to June
2018. The proceeds available under the Credit Facility, which are subject to
specified conditions for borrowing, may be used for working capital and
general corporate purposes.

SIX MONTHS ENDED MAY 31, 2014 COMPARED TO
SIX MONTHS ENDED MAY 31, 2013

Lennar Homebuilding

Revenues from home sales increased 30% in the six months ended May 31, 2014 to
$2.7 billion from $2.1 billion in 2013. Revenues were higher primarily due to
a 12% increase in the number of home deliveries, excluding unconsolidated
entities, and a 15% increase in the average sales price of homes delivered.
New home deliveries, excluding unconsolidated entities, increased to 8,573
homes in the six months ended May 31, 2014 from 7,623 homes in the six months
ended May 31, 2013. There was an increase in home deliveries in all of the
Company's Homebuilding segments, except in the Company's Homebuilding
Southeast Florida segment. The decrease in home deliveries in the Homebuilding
Southeast Florida segment was primarily due to a higher mix of start-up
communities. The average sales price of homes delivered increased to $320,000
in the six months ended May 31, 2014 from $277,000 in the six months ended May
31, 2013. Sales incentives offered to homebuyers were $20,700 per home
delivered in the six months ended May 31, 2014, or 6.1% as a percentage of
home sales revenue, compared to $21,500 per home delivered in the six months
ended May 31, 2013, or 7.2% as a percentage of home sales revenue.

Gross margins on home sales were $695.7 million, or 25.3%, in the six months
ended May 31, 2014, compared to $492.3 million, or 23.3%, in the six months
ended May 31, 2013. Gross margin percentage on home sales improved compared to
the six months ended May 31, 2013, primarily due to a decrease in sales
incentives offered to homebuyers as a percentage of revenue from home sales,
an increase in the average sales price of homes delivered, a greater
percentage of deliveries from the Company's new higher margin communities
(communities where land was acquired subsequent to November 30, 2008) and
$15.1 million of insurance recoveries and other nonrecurring items, partially
offset by an increase in materials, labor and land costs. Gross profits on
land sales totaled $21.7 million in the six months ended May 31, 2014,
compared to $5.7 million in the six months ended May 31, 2013. The increase in
gross profits on land sales included two land sale transactions related to
land not currently under development that generated $65.4 million of revenues
and $8.0 million of gross profits.

Selling, general and administrative expenses were $308.2 million in the six
months ended May 31, 2014, compared to $238.9 million in the six months ended
May 31, 2013. As a percentage of revenues from home sales, selling, general
and administrative expenses improved to 11.2% in the six months ended May 31,
2014, from 11.3% in the six months ended May 31, 2013.

Lennar Homebuilding equity in earnings from unconsolidated entities was $5.4
million in the six months ended May 31, 2014, compared to $12.6 million in the
six months ended May 31, 2013. In the six months ended May 31, 2014, Lennar
Homebuilding equity in earnings from unconsolidated entities included our
share of operating earnings related to a third-party land sale. In the six
months ended May 31, 2013, Lennar Homebuilding equity in earnings from
unconsolidated entities related to the Company's share of operating earnings
of Lennar Homebuilding unconsolidated entities, primarily as a result of sales
of homesites to third parties by one unconsolidated entity that resulted in
$13.0 million of equity in earnings.

Lennar Homebuilding other income, net, totaled $5.2 million in the six months
ended May 31, 2014, compared to $9.9 million in the six months ended May 31,
2013.

Lennar Homebuilding interest expense was $90.2 million in the six months ended
May 31, 2014 ($65.0 million was included in cost of homes sold, $2.2 million
in cost of land sold and $23.0 million in other interest expense), compared to
$101.1 million in the six months ended May 31, 2013 ($48.4 million was
included in cost of homes sold, $1.6 million in cost of land sold and $51.1
million in other interest expense). Interest expense decreased primarily due
to an increase in qualifying assets eligible for interest capitalization,
partially offset by an increase in the Company's outstanding debt and an
increase in home deliveries.

Lennar Financial Services

Operating earnings for the Lennar Financial Services segment were $22.8
million in the six months ended May 31, 2014, compared to $45.3 million in the
six months ended May 31, 2013. The decrease in profitability was primarily due
to a more competitive environment as a result of a significant decrease in
refinance transactions, which led to a decrease in volume in the segment's
mortgage and title operations, as well as lower profit per transaction in the
segment's mortgage operations.

Rialto Investments

Operating earnings for the Rialto segment were $15.9 million in the six months
ended May 31, 2014 (which is comprised of a $0.2 million operating loss and an
add back of $16.1 million of net loss attributable to noncontrolling
interests), compared to operating earnings of $4.5 million (which included
$9.9 million of operating earnings offset by $5.4 million of net earnings
attributable to noncontrolling interests) in the six months ended May 31,
2013.

Revenues in this segment were $101.3 million in the six months ended May 31,
2014, which consisted primarily of securitization revenue and interest income
from RMF, interest income associated with the Rialto segment's portfolio of
real estate loans and fees for managing and servicing assets. This compared to
revenues of $51.3 million in the six months ended May 31, 2013, which
consisted primarily of accretable interest income associated with the
segment's portfolio of real estate loans and fees for managing and servicing
assets. Revenues increased primarily due to RMF and an increase in fees for
managing and servicing assets.

Expenses in this segment were $127.2 million in the six months ended May 31,
2014, which consisted primarily of loan impairments of $40.6 million, net of
recoveries, primarily associated with the segment's FDIC loan portfolio
(before noncontrolling interests), costs related to RMF, interest expense and
other general and administrative expenses, compared to expenses of $60.1
million in the six months ended May 31, 2013, which consisted primarily of
costs related to its portfolio operations, loan impairments of $10.6 million
primarily associated with the segment's FDIC loan portfolio (before
noncontrolling interests), and other general and administrative expenses.
Expenses increased primarily due to an increase in loan impairments due to
changes in the estimated cash flows expected to be collected on the segment's
loan portfolios, increases in securitization expenses and general and
administrative expenses related to RMF and interest expense related to
Rialto's issuance of senior notes in the fourth quarter of 2013.

Rialto Investments equity in earnings from unconsolidated entities were $23.3
million and $10.7 million in the six months ended May 31, 2014 and 2013,
respectively,which were primarily related to the Company's share of earnings
from the Rialto real estate funds.

In the six months ended May 31, 2014, Rialto Investments other income, net,
was $2.4 million, which consisted primarily of net realized gains on the sale
of REO of $23.7 million, rentaland other income, partially offset by expenses
related to owning and maintaining REO and other expenses. In the six months
ended May 31, 2013, Rialto Investments other income, net, was $8.0 million,
which consisted primarily of net realized gains on the sale of REO of $27.2
million and rental income, partially offset by expenses related to owning and
maintaining REO.

Lennar Multifamily

Operating loss for the Lennar Multifamily segment was $13.4 million in the six
months ended May 31, 2014, compared to $4.9 million in the six months ended
May 31, 2013. The operating loss in Lennar Multifamily primarily related to
general contractor expenses and general and administrative expenses of the
segment, partially offset by general contractor and management fee income.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were $76.4 million, or 2.4% as a
percentage of total revenues, in the six months ended May 31, 2014, compared
to $65.1 million, or 2.7% as a percentage of total revenues, in the six months
ended May 31, 2013. As a percentage of total revenues, corporate general and
administrative expenses improved due to increased operating leverage.

Noncontrolling Interests

Net earnings (loss) attributable to noncontrolling interests were ($13.3)
million and $4.8 million in the six months ended May 31, 2014 and 2013,
respectively, which were primarily related to net earnings (loss) attributable
to noncontrolling interests associated with the FDIC's interest in the
portfolio of real estate loans that the Company acquired in partnership with
the FDIC.

Income Taxes

During the six months ended May 31, 2014, the Company had a $126.9 million
provision for income taxes, compared to a $15.9 million net tax provision in
the six months ended May 31, 2013, which included an $82.3 million tax
provision primarily related to pre-tax earnings for the six months ended May
31, 2013, partially offset by the reversal of $66.4 million of its valuation
allowance.

About Lennar

Lennar Corporation, founded in 1954, is one of the nation's largest builders
of quality homes for all generations. The Company builds affordable, move-up
and retirement homes primarily under the Lennar brand name. Lennar's Financial
Services segment provides mortgage financing, title insurance and closing
services for both buyers of the Company's homes and others. Lennar's Rialto
Investments segment is a vertically integrated asset management platform
focused on investing throughout the commercial real estate capital structure.
Lennar's Multifamily segment is a national developer of high-quality
multifamily rental properties. Previous press releases and further information
about the Company may be obtained at the "Investor Relations" section of the
Company's website, www.lennar.com.

Note Regarding Forward-Looking Statements: Some of the statements in this
press release are "forward-looking statements," as that term is defined in the
Private Securities Litigation Reform Act of 1995, including statements
regarding the Company's belief regarding its pipeline in the Multifamily
segment and the ability of that segment to become a meaningful contributor to
earnings, the Company's belief regarding apartment sales in the Multifamily
segment, the Company's belief regarding the Rialto segment's ability to
provide strong long term returns, and the Company's belief regarding its
ability to capitalize on the opportunities of a recovering market. You can
identify forward-looking statements by the fact that these statements do not
relate strictly to historical or current matters. Rather, forward-looking
statements relate to anticipated or expected events, activities, trends or
results. Accordingly, these forward-looking statements should be evaluated
with consideration given to the many risks and uncertainties inherent in our
business that could cause actual results and events to differ materially from
those in the forward-looking statements. Important factors that could cause
such differences include a slow-down in the recovery of real estate markets
across the nation, or any downturn in such markets, including a slow-down or
downturn in the multifamily rental market; the inability of the Rialto segment
to profit from the investments it makes; increases in operating costs,
including costs related to real estate taxes, construction materials, labor
and insurance, and our ability to manage our cost structure; natural disasters
or catastrophic events for which our insurance may not provide adequate
coverage; a decline in the value of the land and home inventories we maintain
or possible future write-downs of the book value of our real estate assets;
reduced availability of mortgage financing and increased interest rates;
changes in laws, regulations or the regulatory environment affecting our
business, and the risks described in our filings with the Securities and
Exchange Commission, including our Form 10-K, for the fiscal year ended
November 30, 2013. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.

A conference call to discuss the Company's second quarter earnings will be
held at 11:00 a.m. Eastern Time on Thursday, June 26, 2014. The call will be
broadcast live on the Internet and can be accessed through the Company's
website at www.lennar.com. If you are unable to participate in the conference
call, the call will be archived at www.lennar.com for 90 days. A replay of the
conference call will also be available later that day by calling 203-369-1907
and entering 5723593 as the confirmation number.



LENNAR CORPORATION AND SUBSIDIARIES
Selected Revenues and Operating Information
(In thousands, except per share amounts)
(unaudited)
                                Three Months Ended      Six Months Ended
                                May 31,                 May 31,
                                2014         2013       2014       2013
Revenues:
Lennar Homebuilding             $ 1,634,785  1,269,844  2,866,170  2,138,288
Lennar Financial Services       111,016      119,096    187,968    214,976
Rialto Investments              54,393       25,684     101,348    51,306
Lennar Multifamily              18,551       12,257     26,354     12,554
Total revenues                  $ 1,818,745  1,426,881  3,181,840  2,417,124
Lennar Homebuilding operating   $ 234,511    159,794    396,729    230,466
earnings
Lennar Financial Services       18,293       29,172     22,758     45,274
operating earnings
Rialto Investments operating    (3,677)      8,530      (173)      9,881
earnings (loss)
Lennar Multifamily operating    (7,180)      (1,354)    (13,379)   (4,888)
loss
Corporate general and           (38,317)     (33,853)   (76,429)   (65,123)
administrative expenses
Earnings before income taxes    203,630      162,289    329,506    215,610
Provision for income taxes      (81,013)     (19,491)   (126,924)  (15,854)
Net earnings (including net
earnings (loss) attributable to 122,617      142,798    202,582    199,756
noncontrolling interests)
Less: Net earnings (loss)
attributable to noncontrolling  (15,102)     5,362      (13,254)   4,828
interests
Net earnings attributable to    $ 137,719    137,436    215,836    194,928
Lennar
Average shares outstanding:
Basic                           202,000      190,010    201,977    189,779
Diluted                         228,009      226,655    227,821    226,336
Earnings per share:
Basic                           $ 0.67       0.71       1.06       1.01
Diluted (1)                     $ 0.61       0.61       0.95       0.88
Supplemental information:
Interest incurred (2)           $ 69,682     65,055     135,600    126,431
EBIT (3):
Net earnings attributable to    $ 137,719    137,436    215,836    194,928
Lennar
Provision for income taxes      81,013       19,491     126,924    15,854
Interest expense                49,200       54,831     90,184     101,120
EBIT                            $ 267,932    211,758    432,944    311,902



     Diluted earnings per share includes an add back of interest of $2.0
     million and $4.0 million for the three and six months ended May 31, 2014,
(1)  respectively, related to the Company's 3.25% convertible senior notes and
     $2.8 million and $5.7 million for the three and six months ended May 31,
     2013, respectively, related to the Company's 2.00% and 3.25% convertible
     senior notes.
(2)  Amount represents interest incurred related to Lennar Homebuilding debt.
     EBIT is a non-GAAP financial measure defined as earnings before interest
     and taxes. This financial measure has been presented because the Company
     finds it important and useful in evaluating its performance and believes
     that it helps readers of the Company's financial statements compare its
     operations with those of its competitors. Although management finds EBIT
(3) to be an important measure in conducting and evaluating the Company's
     operations, this measure has limitations as an analytical tool as it is
     not reflective of the actual profitability generated by the Company
     during the period. Management compensates for the limitations of using
     EBIT by using this non-GAAP measure only to supplement the Company's GAAP
     results. Due to the limitations discussed, EBIT should not be viewed in
     isolation, as it is not a substitute for GAAP measures.



LENNAR CORPORATION AND SUBSIDIARIES
Segment Information
(In thousands)
(unaudited)
                                Three Months Ended      Six Months Ended
                                May 31,                 May 31,
                                2014         2013       2014       2013
Lennar Homebuilding revenues:
Sales of homes                  $ 1,605,366  1,256,267  2,745,597  2,111,348
Sales of land                   29,419       13,577     120,573    26,940
Total revenues                  1,634,785    1,269,844  2,866,170  2,138,288
Lennar Homebuilding costs and
expenses:
Cost of homes sold              1,195,751    952,983    2,049,929  1,619,067
Cost of land sold               23,786       10,916     98,858     21,264
Selling, general and            173,106      136,608    308,211    238,850
administrative
Total costs and expenses        1,392,643    1,100,507  2,456,998  1,879,181
Lennar Homebuilding operating   242,142      169,337    409,172    259,107
margins
Lennar Homebuilding equity in
earnings from unconsolidated    394          13,491     5,384      12,627
entities
Lennar Homebuilding other       2,262        2,075      5,151      9,872
income, net
Other interest expense          (10,287)     (25,109)   (22,978)   (51,140)
Lennar Homebuilding operating   $ 234,511    159,794    396,729    230,466
earnings
Lennar Financial Services       $ 111,016    119,096    187,968    214,976
revenues
Lennar Financial Services costs 92,723       89,924     165,210    169,702
and expenses
Lennar Financial Services       $ 18,293     29,172     22,758     45,274
operating earnings
Rialto Investments revenues     $ 54,393     25,684     101,348    51,306
Rialto Investments costs and    79,604       28,305     127,180    60,076
expenses
Rialto Investments equity in
earnings from unconsolidated    17,939       4,505      23,293     10,678
entities
Rialto Investments other        3,595        6,646      2,366      7,973
income, net
Rialto Investments operating    $ (3,677)    8,530      (173)      9,881
earnings (loss)
Lennar Multifamily revenues     $ 18,551     12,257     26,354     12,554
Lennar Multifamily costs and    25,549       13,581     39,476     17,409
expenses
Lennar Multifamily equity in
loss from unconsolidated        (182)        (30)       (257)      (33)
entities
Lennar Multifamily operating    $ (7,180)    (1,354)    (13,379)   (4,888)
loss



LENNAR CORPORATION AND SUBSIDIARIES
Summary of Deliveries and New Orders
(Dollars in thousands, except average sales price)
(unaudited)
             Homes              Dollar Value                Average Sales
                                                            Price
             Three Months Ended May 31,
Deliveries:  2014      2013     2014            2013        2014       2013
East         1,859     1,603    $  533,991      420,368     $ 287,000  262,000
Central      831       702      233,438         180,676     281,000    257,000
West         985       849      418,136         277,940     425,000    327,000
Southeast    374       453      129,268         123,883     346,000    273,000
Florida
Houston      600       538      166,152         135,812     277,000    252,000
Other        338       319      130,711         127,311     387,000    399,000
Total        4,987     4,464    $  1,611,696    1,265,990   $ 323,000  284,000
Of the total homes delivered listed above, 11 homes with a dollar value of
$6.3 million and an average sales price of $575,000 represent home deliveries
from unconsolidated entities for the three months ended May 31, 2014, compared
to 15 home deliveries with a dollar value of $9.7 million and an average sales
price of $648,000 for the three months ended May 31, 2013.
New Orders:
East         2,182     2,385    $  629,410      650,514     $ 288,000  273,000
Central      1,045     862      305,069         230,866     292,000    268,000
West         1,307     909      558,602         328,565     427,000    361,000
Southeast    523       463      169,456         137,635     324,000    297,000
Florida
Houston      753       716      206,223         189,482     274,000    265,000
Other        373       370      154,083         136,456     413,000    369,000
Total        6,183     5,705    $  2,022,843    1,673,518   $ 327,000  293,000
Of the total new orders listed above, 12 homes with a dollar value of $8.6
million and an average sales price of $714,000 represent new orders from
unconsolidated entities for the three months ended May 31, 2014, compared to
19 new orders with a dollar value of $12.7 million and an average sales price
of $668,000 for the three months ended May 31, 2013.
             Six Months Ended May 31,
Deliveries:  2014      2013     2014            2013        2014       2013
East         3,253     2,743    $  925,964      708,573     $ 285,000  258,000
Central      1,353     1,277    373,253         328,633     276,000    257,000
West         1,717     1,448    723,427         458,689     421,000    317,000
Southeast    672       718      231,075         195,734     344,000    273,000
Florida
Houston      1,038     921      288,271         234,807     278,000    255,000
Other        563       543      217,430         203,148     386,000    374,000
Total        8,596     7,650    $  2,759,420    2,129,584   $ 321,000  278,000
Of the total homes delivered listed above, 23 homes with a dollar value of
$13.8 million and an average sales price of $601,000 represent home deliveries
from unconsolidated entities for the six months ended May 31, 2014, compared
to 27 home deliveries with a dollar value of $18.2 million and an average
sales price of$675,000 for the six months ended May 31, 2013.
New Orders:
East         3,828     3,937    $  1,100,028    1,063,283   $ 287,000  270,000
Central      1,811     1,517    523,196         405,958     289,000    268,000
West         2,146     1,487    937,311         518,662     437,000    349,000
Southeast    889       964      289,104         288,308     325,000    299,000
Florida
Houston      1,313     1,233    362,906         327,328     276,000    265,000
Other        661       622      272,408         227,560     412,000    366,000
Total        10,648    9,760    $  3,484,953    2,831,099   $ 327,000  290,000
Of the total new orders listed above, 24 homes with a dollar value of $15.0
million and an average sales price of $625,000 represent new orders from
unconsolidated entities for the six months ended May 31, 2014, compared to 32
new orders with a dollar value of $21.3 million and an average sales price of
$665,000 for the six months ended May 31, 2013.



LENNAR CORPORATION AND SUBSIDIARIES
Summary of Backlog
(Dollars in thousands, except average sales price)
(unaudited)
            Homes              Dollar Value               Average Sales Price
            May 31,
Backlog:    2014      2013     2014          2013         2014       2013
East        2,543     2,570    $  777,063    $ 723,768    $ 306,000  $ 282,000
Central     1,102     893      346,958       246,142      315,000    276,000
West        1,045     747      471,574       263,624      451,000    353,000
Southeast   824       715      274,163       233,857      333,000    327,000
Florida
Houston     944       828      255,720       227,906      271,000    275,000
Other       400       410      224,717       167,874      562,000    409,000
Total       6,858     6,163    $  2,350,195  $ 1,863,171  $ 343,000  $ 302,000
Of the total homes in backlog listed above, 5 homes with a backlog dollar
value of $3.7 million and an average sales price of $736,000 represent the
backlog from unconsolidated entities at May31, 2014, compared with 10 homes
with a backlog dollar value of $6.6 million and an average sales price of
$658,000 at May31, 2013.
Lennar's reportable homebuilding segments and all other homebuilding
operations not required to be reported separately, have operations located in:

East: Florida^(1), Georgia, Maryland, New Jersey, North Carolina, South
Carolina and Virginia
Central: Arizona, Colorado and Texas^(2)
West:California and Nevada
Southeast Florida: Southeast Florida
Houston: Houston, Texas
Other: Illinois, Minnesota, Oregon, Tennessee and Washington
(1) Florida in the East reportable segment excludes Southeast Florida,
which is its own reportable segment.
(2) Texas in the Central reportable segment excludes Houston, Texas, which
is its own reportable segment.



LENNAR CORPORATION AND SUBSIDIARIES
Supplemental Data
(Dollars in thousands)
(unaudited)
                                          May 31,      November 30,  May 31,
                                          2014         2013          2013
Lennar Homebuilding debt                  $ 4,683,438  4,194,432     4,520,486
Total stockholders' equity                4,399,344    4,168,901     3,585,602
Total capital                             $ 9,082,782  8,363,333     8,106,088
Lennar Homebuilding debt to total capital 51.6%        50.2%         55.8%
Lennar Homebuilding debt                  $ 4,683,438  4,194,432     4,520,486
Less: Lennar Homebuilding cash and cash   627,615      695,424       727,207
equivalents
Net Lennar Homebuilding debt              $ 4,055,823  3,499,008     3,793,279
Net Lennar Homebuilding debt to total     48.0%        45.6%         51.4%
capital (1)



      Net Lennar Homebuilding debt to total capital is a non-GAAP financial
      measure defined as net Lennar Homebuilding debt (Lennar Homebuilding
      debt less Lennar Homebuilding cash and cash equivalents) divided by
      total capital (net Lennar Homebuilding debt plus total stockholders'
      equity). The Company believes the ratio of Net Lennar Homebuilding debt
(1) to total capital is a relevant and useful financial measure to investors
      in understanding the leverage employed in our Lennar Homebuilding
      operations. However, because Net Lennar Homebuilding debt to total
      capital is not calculated in accordance with GAAP, this financial
      measure should not be considered in isolation or as an alternative to
      financial measures prescribed by GAAP. Rather, this non-GAAP financial
      measure should be used to supplement the Company's GAAP results.



SOURCE Lennar Corporation

Website: http://www.lennar.com
Contact: Allison Bober, Investor Relations, Lennar Corporation, (305) 485-2038
 
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