Lennar Reports Fourth Quarter and Fiscal Year Results

MIAMI, Dec. 18  /PRNewswire-FirstCall/ -- 

  2008 Fourth Quarter
  -- Revenues of $1.3 billion - down 41%
  -- Loss per share of $5.12 (includes a $0.94 per share charge related to
     valuation adjustments and other write-offs; and a $4.61 per share
     charge related to a non-cash deferred tax asset valuation allowance)
  -- Homebuilding cash of $1.1 billion at year-end
  -- Additional $230 million of cash received subsequent to year-end related
     to a tax loss carryback
  -- Gross margin on home sales:
      * 17.0% (excluding SFAS 144 valuation adjustments of $63.4 million) -
        up 490 basis points
      * 11.6% (including SFAS 144 valuation adjustments) - up 1,080 basis
        points
  -- S,G&A expenses as a % of home sales of 14.1% - 100 basis point
     improvement
  -- Operating margin on home sales:
      * 2.9% (excluding SFAS 144 valuation adjustments) - up 580 basis
        points
      * -2.5% (including SFAS 144 valuation adjustments) - up 1,180 basis
        points
  -- Deliveries of 4,518 homes - down 36%
  -- New orders of 2,563 homes - down 46%; cancellation rate of 32%
  -- Backlog of 1,599 homes - down 60%
  -- No outstanding borrowings under the Company's credit facility at year-
     end
  -- Homebuilding debt to total capital, net of homebuilding cash, of 35.7%
  -- Maximum recourse indebtedness related to the Company's unconsolidated
     entities of $520 million - reduced by $1.2 billion, or 71%, since its
     peak at November 30, 2006


  2008 Fiscal Year
  -- Revenues of $4.6 billion - down 55%
  -- Loss per share of $7.00 (includes a $2.41 per share charge related to
     valuation adjustments and other write-offs; and a $4.61 per share
     charge related to a non-cash deferred tax asset valuation allowance)
  -- Deliveries of 15,735 homes - down 53%
  -- New orders of 13,391 homes - down 48%; cancellation rate of 26%




Lennar Corporation (NYSE: LEN; LEN.B), one of the nation's largest homebuilders, today reported results for its fourth quarter and fiscal year ended November 30, 2008. Fourth quarter net loss in 2008 was $811.0 million, or $5.12 per diluted share, compared to a net loss of $1.3 billion, or $7.92 per diluted share, in 2007. The net loss for the year ended November 30, 2008

was $1.1 billion, or $7.00 per diluted share, compared to a net loss of $1.9 billion, or $12.31 per diluted share, in 2007.

Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, "Broad-based external pressures continued to negatively impact the housing market during the fourth quarter as rising unemployment, falling home prices, increased foreclosures, tighter credit and volatile equity markets further eroded consumer confidence and depressed home sales. As we enter fiscal 2009, we are hopeful the new administration will approve a major stimulus package to stimulate housing demand in order to stabilize housing values, which will reduce foreclosures and stabilize the financial markets, leading to restored consumer confidence."

Mr. Miller continued, "During the fourth quarter, we were intensely focused on maximizing our homebuilding operating cash flows.  As a result, we ended our fourth quarter with $1.1 billion in cash and no outstanding borrowings under our credit facility.  During the fourth quarter, we reduced our land expenditures by almost 70% quarter-over-quarter, converted 127% of our backlog into deliveries despite difficult market conditions and continued to right-size our business as S,G&A expenses as a percentage of home sales improved 100 basis points year-over-year."

"Along with significantly enhancing our balance sheet liquidity, we reduced the number of our unconsolidated joint ventures to 116, a 20% decrease from the third quarter, and reduced our maximum unconsolidated joint venture recourse debt to $520 million, a 71% decrease from the peak in 2006."

Mr. Miller concluded, "In 2009, cash generation will continue to be our top priority.  We will convert inventory to cash and reduce both our land purchases and homebuilding starts.  In addition, we will reduce our cash outflows by continuing to right-size our overhead to improve our S,G&A percentage."

                          RESULTS OF OPERATIONS

             THREE MONTHS ENDED NOVEMBER 30, 2008 COMPARED TO
                   THREE MONTHS ENDED NOVEMBER 30, 2007

  Homebuilding


Revenues from home sales decreased 40% in the fourth quarter of 2008 to $1.2 billion from $2.0 billion in 2007. Revenues were lower primarily due to a 34% decrease in the number of home deliveries and a 10% decrease in the average sales price of homes delivered in 2008.  New home deliveries, excluding unconsolidated entities, decreased to 4,484 homes in the fourth quarter of 2008 from 6,810 homes last year.  In the fourth quarter of 2008, new home deliveries were lower in each of the Company's homebuilding segments and Homebuilding Other, compared to 2007.  The average sales price of homes delivered decreased to $262,000 in the fourth quarter of 2008 from $291,000 in the same period last year, due to reduced pricing. Sales incentives offered to homebuyers were $51,400 per home delivered in the fourth quarter of 2008, compared to $58,800 per home delivered in the same period last year.

Gross margins on home sales excluding SFAS 144 valuation adjustments were $200.8 million, or 17.0%, in the fourth quarter of 2008, compared to $240.4 million, or 12.1%, in the fourth quarter of 2007. Gross margin percentage on home sales, excluding SFAS 144 valuation adjustments, improved compared to last year, primarily due to the Company's lower inventory basis and continued focus on repositioning its product and reducing construction costs.  Gross margins on home sales were $137.4 million, or 11.6%, in the fourth quarter of 2008, which included $63.4 million of SFAS 144 valuation adjustments, compared to gross margins on home sales of $15.6 million, or 0.8%, in the fourth quarter of 2007, which included $224.8 million of SFAS 144 valuation adjustments.  Gross margins on home sales excluding SFAS 144 valuation adjustments is a non-GAAP financial measure disclosed by certain of the Company's competitors and has been presented because the Company finds it 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.

Selling, general and administrative expenses were reduced by $131.8 million, or 44%, in the fourth quarter of 2008, compared to the same period last year, primarily due to the consolidation of divisions, which resulted in reductions in associate headcount, variable selling expense and fixed costs. As a percentage of revenues from home sales, selling, general and administrative expenses improved to 14.1% in the fourth quarter of 2008, from 15.1% in the fourth quarter of 2007.

Losses on land sales totaled $72.5 million in the fourth quarter of 2008, which included $16.7 million of SFAS 144 valuation adjustments and $62.9 million of write-offs of deposits and pre-acquisition costs related to approximately 2,700 homesites under option that the Company does not intend to purchase. In the fourth quarter of 2007, losses on land sales totaled $1.2 billion, which included $970.1 million of SFAS 144 valuation adjustments and $217.6 million of write-offs of deposits and pre-acquisition costs related to approximately 12,500 homesites that were under option.

Equity in loss from unconsolidated entities was $6.3 million in the fourth quarter of 2008, which included $2.4 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments, compared to equity in loss from unconsolidated entities of $194.8 million in the fourth quarter of 2007, which included $191.5 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments.

Management fees and other expense, net, totaled $78.1 million in the fourth quarter of 2008, which included $56.3 million of APB 18 valuation adjustments to the Company's investments in unconsolidated entities and $19.4 million of write-offs of notes receivable, compared to management fees and other expense, net, of $83.0 million in the fourth quarter of 2007, which included $85.8 million of APB 18 valuation adjustments to the Company's investments in unconsolidated entities.

Minority interest income (expense), net was ($4.9) million in the fourth quarter of 2008, compared to minority interest income (expense), net of $1.3 million in the fourth quarter of 2007.

Due to the Company's termination of its right to purchase certain LandSource assets, the Company recognized deferred profit of $101.3 million in the fourth quarter of 2008 (net of $31.8 million of write-offs of option deposits and pre-acquisition costs and other write-offs) related to the recapitalization of the Company's LandSource joint venture in 2007.

Sales of land, equity in loss from unconsolidated entities, management fees and other expense, net and minority interest income (expense), net may vary significantly from period to period depending on the timing of land sales and other transactions entered into by the Company and unconsolidated entities in which it has investments.

Change in Reportable Segments

The Company has disaggregated its Houston homebuilding division from its Homebuilding Central reportable segment and has presented Houston as a separate reportable segment due to the division achieving a quantitative threshold set forth in SFAS 131. All prior year segment information has been reclassified to conform to the fiscal 2008 presentation. The changes in reportable segments have no effect on the Company's consolidated financial position, results of operations or cash flows.

Financial Services

Operating loss for the Financial Services segment was $5.4 million in the fourth quarter of 2008, compared to an operating loss of $18.7 million in the same period last year. The reduction in the operating loss was primarily a result of increased profitability in the segment's mortgage operations and a reduced loss in the segment's title operations.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were reduced by $4.5 million, or 12%, in the fourth quarter of 2008, compared to the same period last year.  As a percentage of total revenues, corporate general and administrative expenses increased to 2.4% in the fourth quarter of 2008, from 1.6% in the fourth quarter of 2007, due to lower revenues.

Deferred Tax Asset Valuation Allowance

SFAS 109 requires a reduction of the carrying amounts of deferred tax assets by a valuation allowance, if based on available evidence, it is more likely than not that such assets will not be realized. As a result of the Company's operational results for the three months ended November 30, 2008, the Company has now incurred cumulative losses over the evaluation period it established in accordance with SFAS 109. Accordingly, based on the evaluation of available evidence including the Company's cumulative losses in the evaluation period, its current level of profits and losses and current market conditions, the Company has recorded a non-cash valuation allowance against its deferred tax assets of $730.8 million during the three months ended November 30, 2008. In future periods, the valuation allowance could be reduced based on sufficient evidence indicating that it is more likely than not that a portion of the Company's deferred tax assets will be realized.

                 YEAR ENDED NOVEMBER 30, 2008 COMPARED TO
                       YEAR ENDED NOVEMBER 30, 2007

  Homebuilding


Revenues from home sales decreased 56% in the year ended November 30, 2008 to $4.2 billion from $9.5 billion in 2007.  Revenues were lower primarily due to a 51% decrease in the number of home deliveries and a 9% decrease in the average sales price of homes delivered in 2008.  New home deliveries, excluding unconsolidated entities, decreased to 15,344 homes in the year ended November 30, 2008 from 31,582 homes last year.  In the year ended November 30, 2008, new home deliveries were lower in each of the Company's homebuilding segments and Homebuilding Other, compared to 2007.  The average sales price of homes delivered decreased to $270,000 in the year ended November 30, 2008 from $297,000 in 2007, due to reduced pricing. Sales incentives offered to homebuyers were $48,700 and $48,000 per home delivered in the years ended November 30, 2008 and 2007, respectively.

Gross margins on home sales excluding SFAS 144 valuation adjustments were $705.1 million, or 17.0%, in the year ended November 30, 2008, compared to $1.3 billion, or 13.9%, in 2007.  Gross margin percentage on home sales, excluding SFAS 144 valuation adjustments, improved compared to last year primarily due to the Company's lower inventory basis and continued focus on repositioning its product and reducing construction costs.  Gross margins on home sales were $509.6 million, or 12.3%, in the year ended November 30, 2008, which included $195.5 million of SFAS 144 valuation adjustments, compared to gross margins on home sales of $570.7 million, or 6.0%, in the year ended November 30, 2007, which included $747.8 million of SFAS 144 valuation adjustments.

Selling, general and administrative expenses were reduced by $713.1 million, or 52%, in the year ended November 30, 2008, compared to last year, primarily due to the consolidation of divisions, which resulted in reductions in associate headcount, variable selling expense and fixed costs.  As a percentage of revenues from home sales, selling, general and administrative expenses increased to 15.8% in the year ended November 30, 2008, from 14.5% in 2007, due to lower revenues.

Losses on land sales totaled $133.2 million in the year ended November 30, 2008, which included $47.8 million of SFAS 144 valuation adjustments and $97.2 million of write-offs of deposits and pre-acquisition costs related to approximately 8,200 homesites under option that the Company does not intend to purchase.  In the year ended November 30, 2007, losses on land sales totaled $1.7 billion, which included $1.2 billion of SFAS 144 valuation adjustments and $530.0 million of write-offs of deposits and pre-acquisition costs related to approximately 36,900 homesites that were under option.

Equity in loss from unconsolidated entities was $59.2 million in the year ended November 30, 2008, which included $32.2 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments, compared to equity in loss from unconsolidated entities of $362.9 million in the year ended November 30, 2007, which included $364.2 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments.

Management fees and other expense, net totaled $200.0 million in the year ended November 30, 2008, which included $172.8 million of APB 18 valuation adjustments to the Company's investments in unconsolidated entities and $25.0 million of write-offs of notes receivable, compared to management fees and other expense, net of $76.0 million in the year ended November 30, 2007, which included $132.2 million of APB 18 valuation adjustments to the Company's investments in unconsolidated entities.

Minority interest income (expense), net was $4.1 million in the year ended November 30, 2008, compared to minority interest income (expense), net of ($1.9) million in the year ended November 30, 2007.

Due to the Company's termination of its right to purchase certain LandSource assets, the Company recognized deferred profit of $101.3 million in the year ended November 30, 2008 (net of $31.8 million of write-offs of option deposits and pre-acquisition costs and other write-offs) related to the recapitalization of the Company's LandSource joint venture in 2007.

Sales of land, equity in loss from unconsolidated entities, management fees and other expense, net and minority interest income (expense), net may vary significantly from period to period depending on the timing of land sales and other transactions entered into by the Company and unconsolidated entities in which it has investments.

Financial Services

Operating loss for the Financial Services segment was $31.0 million in the year ended November 30, 2008, compared to operating earnings of $6.1 million in the same period last year. The decline in profitability was primarily due to a goodwill write-off of $27.2 million related to the segment's mortgage operations and lower transactions in the segment's title and mortgage operations.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were reduced by $43.5 million, or 25%, for the year ended November 30, 2008, compared to 2007. As a percentage of total revenues, corporate general and administrative expenses increased to 2.8% in the year ended November 30, 2008, from 1.7% in the same period last year, due to lower revenues.

Lennar Corporation, founded in 1954, is one of the nation's leading 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 primarily mortgage financing, title insurance and closing services for both buyers of the Company's homes and others.  Previous press releases and further information about the Company may be obtained at the "Investor Relations" section of the Company's website, http://www.lennar.com/.

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.  These forward-looking statements include statements regarding our business, financial condition, results of operations, cash flows, strategies and prospects.  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.  Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.  Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements.  These factors include those described under the caption "Risk Factors" in Item 1A of our Annual Report on Form 10-K for our fiscal year ended November 30, 2007.  We do not undertake any obligation to update forward-looking statements, except as required by Federal securities laws.

A conference call to discuss the Company's fourth quarter earnings will be held at 11:00 a.m. Eastern time on Thursday, December 18, 2008.  The call will be broadcast live on the Internet and can be accessed through the Company's website at http://www.lennar.com/.  If you are unable to participate in the conference call, the call will be archived at http://www.lennar.com/ for 90 days.  A replay of the conference call will also be available later that day by calling 203-369- 3956 and entering 5932669 as the confirmation number.

                   LENNAR CORPORATION AND SUBSIDIARIES
              Selected Revenues and Operational Information
                 (In thousands, except per share amounts)
                               (unaudited)

                                Three Months Ended          Years Ended
                                   November 30,             November 30,
                                 2008        2007         2008       2007

  Revenues:
   Homebuilding              $1,206,562   2,096,084   4,263,038   9,730,252
   Financial services            71,486      80,821     312,379     456,529
      Total revenues         $1,278,048   2,176,905   4,575,417  10,186,781

  Homebuilding operating
   loss                      $  (58,228) (1,914,611)   (400,786) (2,913,999)
  Financial services
   operating earnings (loss)     (5,423)    (18,714)    (30,990)      6,120
  Corporate general and
   administrative expenses      (31,299)    (35,766)   (129,752)   (173,202)
  Loss before (provision)
   benefit for income taxes     (94,950) (1,969,091)   (561,528) (3,081,081)
  (Provision) benefit for
   income taxes                (716,039)    717,444    (547,557)  1,140,000

  Net loss                   $ (810,989) (1,251,647) (1,109,085) (1,941,081)

  Basic and diluted average
   shares outstanding           158,529     158,072     158,395     157,718

  Basic and diluted loss per
   share                     $    (5.12)      (7.92)      (7.00)     (12.31)

  Supplemental information:
   Interest incurred(1)      $   37,576      41,613     148,293     199,073
   EBIT before valuation
    adjustments and write-
    offs of option deposits
    and pre-acquisition
    costs, goodwill and
    notes receivable(2):
    Loss before (provision)
     benefit for income
     taxes                   $  (94,950) (1,969,091)   (561,528) (3,081,081)
    Interest expense             32,371      48,041     130,357     203,700
    Valuation adjustments
     and write-offs of
     option deposits and
     pre-acquisition costs,
     goodwill and notes
     receivable                 221,099   1,864,009     597,710   3,160,110
     EBIT before valuation
      adjustments and write-
      offs of option deposits
      and pre-acquisition
      costs, goodwill and
      notes receivable       $  158,520     (57,041)    166,539     282,729


  (1) Amount represents interest incurred related to homebuilding debt,
      which is primarily capitalized to inventories and relieved as cost of
      sales when homes are delivered or land is sold.

  (2) EBIT before valuation adjustments and write-offs of option deposits
      and pre-acquisition costs, goodwill and notes receivable is a non-GAAP
      financial measure derived by adding back interest expense, valuation
      adjustments and write-offs of option deposits and pre-acquisition
      costs, goodwill and notes receivable reflected in loss before
      (provision) benefit for income taxes.  This financial measure has been
      presented because the Company finds it 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.



                   LENNAR CORPORATION AND SUBSIDIARIES
                         Homebuilding Information
                              (In thousands)
                               (unaudited)

                                Three Months Ended        Years Ended
                                   November 30,           November 30,
                                 2008        2007       2008        2007

  Revenues:
    Sales of homes           $1,183,066   1,983,618  4,150,717   9,462,940
    Sales of land                23,496     112,466    112,321     267,312
     Total revenues           1,206,562   2,096,084  4,263,038   9,730,252

  Costs and expenses:
    Cost of homes sold        1,045,622   1,968,044  3,641,090   8,892,268
    Cost of land sold            96,010   1,293,643    245,536   1,928,451
    Selling, general and
     administrative             166,967     298,783    655,255   1,368,358
      Total costs and
       expenses               1,308,599   3,560,470  4,541,881  12,189,077

  Gain on recapitalization
   of unconsolidated
   entity                       133,097         -      133,097     175,879
  Goodwill impairments              -      (173,701)       -      (190,198)
  Equity in loss from
   unconsolidated entities       (6,299)   (194,762)   (59,156)   (362,899)
  Management fees and
   other expense, net           (78,086)    (83,025)  (199,981)    (76,029)
  Minority interest income
   (expense), net                (4,903)      1,263      4,097      (1,927)
  Operating loss             $  (58,228) (1,914,611)  (400,786) (2,913,999)



                   LENNAR CORPORATION AND SUBSIDIARIES
                   Valuation Adjustments and Write-offs
                              (In thousands)
                               (unaudited)

                                      Three Months Ended     Years Ended
                                         November 30,        November 30,
                                       2008       2007     2008       2007
  SFAS 144 valuation adjustments to
   finished homes, CIP and land on
   which the Company intends to
   build homes:
   East                             $ 25,824     67,114   76,791    279,064
   Central                             7,035     30,427   28,142     91,354
   West                               26,654    115,756   75,614    331,827
   Houston                             1,468        651    2,262      2,836
   Other                               2,404     10,863   12,709     42,762
      Total                           63,385    224,811  195,518    747,843
  SFAS 144 valuation adjustments to
   land the Company intends to sell
   or has sold to third parties:
   East                                9,411    235,228   23,251    307,534
   Central                             1,598     60,397   12,369     79,101
   West                                5,657    584,587   11,094    648,628
   Houston                                29      1,422      137      1,762
   Other                                  47     88,442      940    130,269
      Total                           16,742    970,076   47,791  1,167,294
  Write-offs of option deposits and
   pre-acquisition costs:
   East                                7,979     45,314   18,989    119,645
   Central                               188      7,508    6,024     56,304
   West                               52,374    146,336   62,447    310,795
   Houston                                 -        196      745        813
   Other                               2,331     18,242    8,967     42,424
      Total                           62,872    217,596   97,172    529,981
  Company's share of SFAS 144
   valuation adjustments related
   to assets of unconsolidated
    entities:
   East                                    -     48,146    7,241     55,157
   Central                             1,574     18,997    1,732     29,585
   West                                  805    118,566   22,675    273,679
   Houston                                 -          -        -          -
   Other                                   -      5,741      597      5,741
      Total                            2,379    191,450   32,245    364,162
  APB 18 valuation adjustments to
   investments in unconsolidated
   entities:
   East                               34,169     15,481   54,340     42,200
   Central                            10,776      8,800   11,197     14,552
   West                                7,600     58,487   90,193     68,883
   Houston                                 -          -        -          -
   Other                               3,754      3,066   17,060      6,571
      Total                           56,299     85,834  172,790    132,206
  Write-offs of notes receivable:
   East                               10,200          -   10,200          -
   Central                                 -          -        -          -
   West                                9,222          -   10,222          -
   Houston                                 -          -        -          -
   Other                                   -          -    4,596          -
      Total                           19,422          -   25,018          -
  Goodwill impairments:
   East                                    -     46,274        -     46,274
   Central                                 -     28,465        -     31,293
   West                                    -     43,955        -     43,955
   Houston                                            -        -          -
   Other                                   -     55,007        -     68,676
      Total                                -    173,701        -    190,198
  Financial services write-offs of
   notes receivable                        -        541        -     28,426
  Financial services goodwill
   impairments                             -          -   27,176          -
         Total valuation adjustments
          and write-offs of option
          deposits and pre-
          acquisitions costs,
          goodwill and notes
          receivable                $221,099  1,864,009  597,710  3,160,110



                   LENNAR CORPORATION AND SUBSIDIARIES
              Summary of Deliveries, New Orders and Backlog
                          (Dollars in thousands)
                               (unaudited)

                                                             At or for the
                                     Three Months Ended       Years Ended
                                         November 30,         November 30,
                                       2008       2007      2008       2007
  Deliveries:
    East                              1,517      2,087     4,957      9,840
    Central                             605      1,352     2,442      7,020
    West                              1,157      1,855     4,031      8,739
    Houston                             791        911     2,736      4,380
    Other                               448        839     1,569      3,304
     Total                            4,518      7,044    15,735     33,283

  Of the total deliveries listed above, 34 and 391, respectively, represent
  deliveries from unconsolidated entities for the three months and year
  ended November 30, 2008, compared to 234 and 1,701 deliveries in the same
  periods last year.


  New Orders:
    East                                763      1,197     3,953      7,492
    Central                             469      1,025     2,280      5,055
    West                                634      1,418     3,396      6,765
    Houston                             449        578     2,416      3,621
    Other                               248        543     1,346      2,820
     Total                            2,563      4,761    13,391     25,753

  Of the total new orders listed above, there were 38 net cancellations from
  unconsolidated entities for the three months ended November 30, 2008 and
  174 net new orders from unconsolidated entities for the year ended
  November 30, 2008, compared to 123 and 1,091 net new orders in the same
  periods last year.


  Backlog - Homes:
    East                                                     787      1,797
    Central                                                  123        285
    West                                                     247        942
    Houston                                                  269        589
    Other                                                    173        396
     Total                                                 1,599      4,009

  Of the total homes in backlog listed above, 8 represents homes in backlog
  from unconsolidated entities at November 30, 2008, compared to
  364 homes in backlog at November 30, 2007.


  Backlog - Dollar Value:
    East                                                $202,791    587,100
    Central                                               23,736     67,344
    West                                                 108,779    408,280
    Houston                                               57,785    128,340
    Other                                                 63,179    193,073
     Total                                              $456,270  1,384,137

  Of the total dollar value of homes in backlog listed above, $12,460
  represents the backlog dollar value from unconsolidated entities at
  November 30, 2008, compared to $182,664 of backlog dollar value at
  November 30, 2007.


  Lennar's reportable homebuilding segments and homebuilding other consist
  of homebuilding divisions located in:

  East:     Florida, Maryland, New Jersey and Virginia
  Central:  Arizona, Colorado and Texas (1)
  West:     California and Nevada
  Houston:  Houston, Texas
  Other:    Illinois, Minnesota, New York, North Carolina and South Carolina

  (1) 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)

                                                       November 30,
                                                  2008              2007

    Homebuilding debt                         $2,544,935         2,295,436
    Stockholders' equity                       2,623,007         3,822,119
       Total capital                          $5,167,942         6,117,555
    Homebuilding debt to total capital             49.2%             37.5%

    Homebuilding debt                         $2,544,935         2,295,436
    Less: Homebuilding cash                    1,091,468           642,467
       Net homebuilding debt                  $1,453,467         1,652,969
    Net homebuilding debt to total
     capital(1)                                    35.7%             30.2%

  (1) Net homebuilding debt to total capital consists of net homebuilding
      debt (homebuilding debt less homebuilding cash) divided by total
      capital (net homebuilding debt plus stockholders' equity).


DATASOURCE: Lennar Corporation



CONTACT:  Scott Shipley, Investor Relations, Lennar Corporation,

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Web site:  http://www.lennar.com/ 



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