8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

March 30, 2009

Date of Report (Date of earliest event reported)

LENNAR CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-11749	95-4337490
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

700 Northwest 107^th Avenue, Miami, Florida 33172

(Address of principal executive offices) (Zip Code)

(305) 559-4000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On March 30, 2009, Lennar Corporation (the “Company”) issued a press release to announce its results of operations for the first quarter ended February 28, 2009. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01. Regulation FD Disclosure.

The Company expects to make presentations in which it provides investors additional information about the unconsolidated joint ventures in which the Company was a participant at February 28, 2009. The slides that will be used for those presentations are furnished as Exhibit 99.2 to this Current Report on Form 8-K.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished as part of this Current Report on Form 8-K.

Exhibit No.	Description of Document
99.1	Press Release issued by Lennar Corporation on March 30, 2009.
99.2	Slides of Additional Unconsolidated Joint Venture Disclosures.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 30, 2009	Lennar Corporation
	By:	/s/     Bruce E. Gross
	Name:	Bruce E. Gross
	Title:	Vice President and Chief Financial Officer

3

Exhibit Index

Exhibit No.	Description of Document
99.1	Press Release issued by Lennar Corporation on March 30, 2009.
99.2	Slides of Additional Unconsolidated Joint Venture Disclosures.

EX-99.1

Exhibit 99.1

Contact:

Scott Shipley

Investor Relations

Lennar Corporation

(305) 485-2054

FOR IMMEDIATE RELEASE

Lennar Reports First Quarter Results

• Revenues of $593.1 million – down 44%

• Loss per share of $0.98 (includes a $0.35 per share charge related to valuation adjustments and other write-offs; and a $0.36 per share charge related to a non-cash deferred tax asset valuation allowance)

• Gross margin on home sales:

• 14.3% (excluding SFAS 144 valuation adjustments of $40.8 million) – down 280 basis points

• 6.5% (including SFAS 144 valuation adjustments) – down 780 basis points

• S, G & A expenses as a % of revenues from home sales of 19.4% – up 100 basis points

• Homebuilding cash of $1.1 billion as of February 28, 2009

• No outstanding balance under the Company’s credit facility as of February 28, 2009

• Homebuilding debt to total capital, net of homebuilding cash, of 37.4%

• Maximum recourse indebtedness related to the Company’s unconsolidated entities of $474.0 million – reduced $45.9 million since Q4 2008 and $1.3 billion since the peak in 2006

• Number of unconsolidated joint ventures reduced to 95 – down from 116 unconsolidated joint ventures at Q4 2008 and 270 unconsolidated joint ventures at the peak in 2006

• Simultaneous with this press release, the Company has filed a Form 8-K providing additional unconsolidated joint venture disclosures

• Deliveries of 2,142 homes – down 40%

• New orders of 2,190 homes – down 28%; cancellation rate of 21%

• Backlog of 1,647 homes – down 52%

Miami, March 30, 2009 – Lennar Corporation (NYSE: LEN and LEN.B), one of the nation’s largest homebuilders, today reported results for its first quarter ended February 28, 2009. First quarter net loss in 2009 was $155.9 million, or $0.98 per diluted share, compared to first quarter net loss of $88.2 million, or $0.56 per diluted share, in 2008.

(more)

2-2-2

Stuart Miller, President and Chief Executive Officer of Lennar Corporation, said, “The housing market continued its downward trend throughout our first quarter. Despite historically low interest rates and some indicators pointing toward market stabilization, low consumer confidence, increased unemployment and growing foreclosure rates negatively impacted new home sales in most of our markets. While we are hopeful that the recent actions taken by the Federal government will help stimulate housing demand and restore consumer confidence, we continue to adjust our business to adapt to market conditions.”

Mr. Miller continued, “During the first quarter, we continued to focus on returning to profitability by concentrating on the basics of our homebuilding operations. We remained focused on repositioning our product to meet today’s consumer demand for more affordable product. We reduced our construction costs by re-bidding and re-tooling our product and eliminated S, G & A expenses by restructuring our operations and consolidating operating divisions in the wake of declining volume levels.”

“We remain focused on maintaining strong liquidity as we ended our first quarter with $1.1 billion in cash, no outstanding borrowings under our credit facility and a responsible homebuilding debt-to-total capital ratio, net of homebuilding cash, of 37.4%. We also reduced the number of our unconsolidated joint ventures to 95 from 116 at November 30, 2008 and reduced our maximum unconsolidated joint venture recourse debt to $474 million from $520 million at November 30, 2008.”

Mr. Miller concluded, “As we continue to focus on homebuilding profitability and on cash generation, we are well positioned to weather the current challenges and to take advantage of opportunities as they present themselves.”

RESULTS OF OPERATIONS

THREE MONTHS ENDED FEBRUARY 28, 2009 COMPARED TO

THREE MONTHS ENDED FEBRUARY 29, 2008

Homebuilding

Revenues from home sales decreased 45% in the first quarter of 2009 to $522.8 million from $953.1 million in 2008. Revenues were lower primarily due to a 38% decrease in the number of home deliveries and a 12% decrease in the average sales price of homes delivered in 2009. New home deliveries, excluding unconsolidated entities, decreased to 2,136 homes in the first quarter of 2009 from 3,437 homes last year. In the first quarter of 2009, new home deliveries were lower in each of the Company’s homebuilding segments and Homebuilding Other, compared to 2008. The average sales price of homes

3-3-3

delivered decreased to $244,000 in the first quarter of 2009 from $278,000 in the same period last year, primarily due to reduced pricing. Sales incentives offered to homebuyers were $50,500 per home delivered in the first quarter of 2009, compared to $48,000 per home delivered in the first quarter of 2008.

Gross margins on home sales excluding SFAS 144 valuation adjustments were $75.0 million, or 14.3%, in the first quarter of 2009, compared to $162.9 million, or 17.1%, in 2008. Gross margin percentage on home sales, excluding SFAS 144 valuation adjustments, decreased compared to last year, primarily due to higher sales incentives offered to homebuyers as a percentage of revenues from home sales. Gross margins on home sales were $34.2 million, or 6.5%, in the first quarter of 2009, which included $40.8 million of SFAS 144 valuation adjustments, compared to gross margins on home sales of $136.7 million, or 14.3%, in the first quarter of 2008, which included $26.2 million of SFAS 144 valuation adjustments. Gross margins on home sales excluding SFAS 144 valuation adjustments is a non-GAAP financial measure. This financial measure is disclosed by certain of the Company’s competitors. The Company finds it useful and important in evaluating its performance because it discloses the Company’s gross margins with regard to new homes the Company actually delivers in the periods presented. The Company believes that disclosing this information is helpful to readers of its financial statements by enabling them to compare the gross margins of new homes the Company actually delivers during the periods presented with those of its competitors.

Selling, general and administrative expenses were reduced by $73.8 million, or 42%, in the first quarter of 2009, compared to the same period last year, primarily due to reduction in associate headcount, variable selling expenses and fixed costs. As a percentage of revenues from home sales, selling, general and administrative expenses increased to 19.4% in the first quarter of 2009, from 18.4% in the first quarter of 2008, due to lower revenues.

Losses on land sales totaled $10.5 million in the first quarter of 2009, which included $0.2 million of SFAS 144 valuation adjustments and $10.2 million of write-offs of deposits and pre-acquisition costs related to approximately 1,100 homesites under option that the Company does not intend to purchase. In the first quarter of 2008, losses on land sales totaled $26.5 million, which included $15.5 million of SFAS 144 valuation adjustments and $16.9 million of write-offs of deposits and pre-acquisition costs related to approximately 2,600 homesites that were under option.

Equity in loss from unconsolidated entities was $2.9 million in the first quarter of 2009, compared to equity in loss from unconsolidated entities of $23.0 million in the first quarter of 2008, which included $18.9 million of SFAS 144 valuation adjustments related to assets of unconsolidated entities in which the Company has investments.

4-4-4

Other income (expense), net, totaled ($47.8) million in the first quarter of 2009, which included $37.2 million of APB 18 valuation adjustments to the Company’s investments in unconsolidated entities, compared to other income (expense), net, of ($21.8) million in the first quarter of 2008, which included $29.6 million of APB 18 valuation adjustments to the Company’s investments in unconsolidated entities.

Minority interest income (expense), net was $1.7 million and ($0.2) million, respectively, in the first quarter of 2009 and 2008.

Sales of land, equity in loss from unconsolidated entities, other income (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 earnings for the Financial Services segment was $0.5 million in the first quarter of 2009, compared to an operating loss of $9.7 million in the first quarter of 2008. The improvement in the Financial Services segment was primarily due to lower fixed costs as a result of the Company’s focus on cost reductions in the segment’s mortgage and title operations.

Corporate General and Administrative Expenses

Corporate general and administrative expenses were reduced by $6.8 million, or 20%, in the first quarter of 2009, compared to the first quarter of 2008. As a percentage of total revenues, corporate general and administrative expenses increased to 4.7% in the first quarter of 2009, from 3.3% in the first quarter of 2008, 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 its net loss during the three months ended February 28, 2009, the Company generated deferred tax assets of $57.7 million and recorded a non-cash valuation allowance in accordance with SFAS 109 against the entire amount of deferred tax assets generated.

5-5-5

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, 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, 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, 2008. 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 first quarter earnings will be held at 11:00 a.m. Eastern Time on Tuesday, March 31, 2009. 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 203-369-0957 and entering 5932669 as the confirmation number.

###

6-6-6

LENNAR CORPORATION AND SUBSIDIARIES

Selected Revenues and Operational Information

(In thousands, except per share amounts)

(unaudited)

	Three Months Ended
	February 28, 2009			February 29, 2008
Revenues:
Homebuilding	$	529,034		993,776
Financial services		64,029		69,137
Total revenues	$	593,063		1,062,913
Homebuilding operating loss	$	(126,542	)	(109,780	)
Financial services operating earnings (loss)		492		(9,692	)
Corporate general and administrative expenses		(28,031	)	(34,822	)
Loss before (provision) benefit for income taxes		(154,081	)	(154,294	)
(Provision) benefit for income taxes		(1,848	)	66,078
Net loss	$	(155,929	)	(88,216	)
Basic and diluted average shares outstanding		158,621		158,204
Basic and diluted loss per share	$	(0.98	)	(0.56	)
Supplemental information:
Interest incurred (1)	$	38,504		38,095
EBIT before valuation adjustments and write-offs of option deposits and pre-acquisition costs (2):
Loss before (provision) benefit for income taxes	$	(154,081	)	(154,294	)
Interest expense		16,984		32,443
Valuation adjustments and write-offs of option deposits and pre-acquisition costs		88,453		107,111
EBIT before valuation adjustments and write-offs of option deposits and pre-acquisition costs	$	(48,644	)	(14,740	)

(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 is a non-GAAP financial measure derived by adding back interest expense, valuation adjustments and write-offs of option deposits and pre-acquisition costs reflected in loss before (provision) benefit for income taxes. This financial measure has been presented because the Company finds it useful and important in evaluating its performance and believes that it helps readers of the Company’s financial statements compare its operations with those of its competitors.

7-7-7

LENNAR CORPORATION AND SUBSIDIARIES

Homebuilding Information

(In thousands)

(unaudited)

	Three Months Ended
	February 28, 2009			February 29, 2008
Revenues:
Sales of homes	$	522,758		953,066
Sales of land		6,276		40,710
Total revenues		529,034		993,776
Costs and expenses:
Cost of homes sold		488,576		816,371
Cost of land sold		16,806		67,160
Selling, general and administrative		101,177		175,018
Total costs and expenses		606,559		1,058,549
Equity in loss from unconsolidated entities		(2,917	)	(22,980	)
Other income (expense), net		(47,834	)	(21,793	)
Minority interest income (expense), net		1,734		(234	)
Operating loss	$	(126,542	)	(109,780	)

8-8-8

LENNAR CORPORATION AND SUBSIDIARIES

Valuation Adjustments and Write-offs

(In thousands)

(unaudited)

	Three Months Ended
	February 28, 2009		February 29, 2008
SFAS 144 valuation adjustments to finished homes, CIP and land on which the Company intends to build homes:
East	$	13,478	8,106
Central		8,081	1,667
West		18,398	9,920
Houston		146	112
Other		677	6,424
Total		40,780	26,229
SFAS 144 valuation adjustments to land the Company intends to sell or has sold to third parties:
East		139	1,372
Central		78	9,233
West		—	4,192
Houston		—	64
Other		—	594
Total		217	15,455
Write-offs of option deposits and pre-acquisition costs:
East		5,780	7,054
Central		82	4,079
West		515	3,364
Houston		721	265
Other		3,133	2,090
Total		10,231	16,852
Company’s share of SFAS 144 valuation adjustments related to assets of unconsolidated entities:
East		—	4,157
Central		—	158
West		—	14,025
Houston		—	—
Other		—	597
Total		—	18,937
APB 18 valuation adjustments to investments in unconsolidated entities:
East		2,566	937
Central		7,618	228
West		25,550	28,439
Houston		—	—
Other		1,491	34
Total		37,225	29,638
Total valuation adjustments and write-offs of option deposits and pre-acquisitions costs	$	88,453	107,111

9-9-9

LENNAR CORPORATION AND SUBSIDIARIES

Summary of Deliveries, New Orders and Backlog

(Dollars in thousands)

(unaudited)

	At or for the Three Months Ended
	February 28, 2009			February 29, 2008
	Homes	Dollar Value		Homes	Dollar Value
Deliveries:
East	794	$	178,372	1,165	$	313,757
Central	315		61,902	604		132,809
West	409		148,116	924		366,523
Houston	405		78,620	575		109,657
Other	219		63,373	328		107,799
Total	2,142	$	530,383	3,596	$	1,030,545
Of the total home deliveries listed above, 6 homes with a dollar value of $7,625 represent deliveries from unconsolidated entities for the three months ended February 28, 2009, compared to 159 home deliveries with a dollar value of $77,479 for the three months ended February 29, 2008.
New Orders:
East	716	$	155,281	942	$	231,002
Central	366		72,846	569		122,009
West	491		161,676	747		293,082
Houston	395		74,069	492		99,277
Other	222		59,464	295		83,387
Total	2,190	$	523,336	3,045	$	828,757
Of the total new orders listed above, 8 homes with a dollar value of $4,898 represent new orders from unconsolidated entities for the three months ended February 28, 2009, compared to 62 new orders with a dollar value of $39,298 for the three months ended February 29, 2008.
Backlog:
East	711	$	180,785	1,568	$	492,862
Central	174		35,395	250		56,401
West	329		122,260	711		307,071
Houston	259		53,168	506		117,960
Other	174		58,513	363		178,045
Total	1,647	$	450,121	3,398	$	1,152,339

Of the total homes in backlog listed above, 9 homes with a backlog dollar value of $9,339 represents the backlog from unconsolidated entities at February 28, 2009, compared to 204 homes in backlog with a dollar value of $113,865 at February 29, 2008.

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.

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LENNAR CORPORATION AND SUBSIDIARIES

Supplemental Data

(Dollars in thousands)

(unaudited)

	February 28, 2009			November 30, 2008		February 29, 2008
Homebuilding debt	$	2,574,115		2,544,935		2,279,497
Stockholders’ equity		2,467,375		2,623,007		3,680,898
Total capital	$	5,041,490		5,167,942		5,960,395
Homebuilding debt to total capital		51.1	%	49.2	%	38.2	%
Homebuilding debt	$	2,574,115		2,544,935		2,279,497
Less: Homebuilding cash and cash equivalents		1,099,864		1,091,468		1,088,141
Net homebuilding debt	$	1,474,251		1,453,467		1,191,356
Net homebuilding debt to total capital (1)		37.4	%	35.7	%	24.5	%

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

EX-99.2

Additional Unconsolidated Joint Venture Disclosures

Exhibit 99.2

Disclaimer Statement

This presentation includes "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 our most

recent Annual Report on Form 10-K filed with the Securities and Exchange

Commission.  We do not undertake any obligation to update forward-looking

statements, except as required by federal securities laws.

1

Joint Ventures

Joint Ventures

Additional Disclosures

Additional Disclosures

Our unconsolidated JV disclosures are made in accordance with generally

accepted accounting principles.  Based upon investor / analyst requests, we

are providing additional joint venture disclosures which we believe will be

useful in evaluating our joint ventures.  Highlighted below are the new

disclosures included in each section:

Detailed JV Information

New –

Ten Largest Joint Venture Investments

New –

Types of Joint Venture Partners

Detailed JV Debt Disclosures

New –

JV Composition by Type of Debt

New –

Lennar Cash Payments for Recourse Reductions

New –

Future JV Debt Maturities

Corporate Governance 

New –

Summary of our JV Corporate Governance

New –

JV Interests are Prohibited From Being Pledged

2

Detailed JV Information

3

Detailed Joint Venture Information

New -

Ten Largest Joint Venture Investments

10 Largest Joint Ventures (based on LEN investment) as of February 28, 2009

(Dollars in Thousands)

Remaining

JV

JV Debt

Homes/

Partner

JV

Year

LEN

Total JV

Gross Recourse

Reimbursement

Net Recourse

Total Debt Without

Total JV

Total JV

to Total

Homesites

Joint Venture Name

Type

Type

Formed

Location

Investment

Assets

Debt to Lennar

Agreements

Debt to Lennar

Recourse to Lennar

Debt

Equity

Capital Ratio

in JV

Platinum Triangle Partners, LLC

Strategic

Land

2004

Orange County, CA

95,587

$         

270,782

$   

74,889

$              

37,445

$              

37,444

$           

-

$                           

74,889

$     

188,689

$   

28%

3,477

Asante LH, LLC

Financial /

Developer

Land

2007

Phoenix, AZ

85,122

187,461

-

-

-

-

-

170,734

-

4,067

Heritage Fields El Toro, LLC

Financial

Land

2005

Orange County, CA

83,043

1,429,677

-

-

-

544,242

544,242

664,503

45%

4,895

Runkle

Canyon, LLC

HB

Land

2005

Los Angeles, CA

36,467

74,167

-

-

-

-

-

72,616

-

461

Bellevue Towers Investors, LLC

Financial

HB

2005

Seattle, WA

29,897

423,072

-

-

-

309,481

309,481

88,316

78%

536

Lennar Intergulf

(Central Park), LLC

Strategic

HB

2005

Orange County, CA

25,100

184,232

50,456

25,228

25,228

75,685

126,141

49,556

72%

240

MS Rialto Residential Holdings, LLC

Financial

Land

2007

National

21,322

552,740

-

-

-

203,841

203,841

316,937

39%

10,106

Lennar Intergulf

(Pacific), LLC

Strategic

HB

2004

San Diego, CA

20,659

94,707

15,000

-

15,000

34,678

49,678

40,372

55%

151

Ballpark Village, LLC

Land Owner

Land

2004

San Diego, CA

19,808

96,888

-

-

-

58,910

58,910

37,335

61%

1,455

USH/SVA Star Valley, LLC

HB

Land

2001

Tucson, AZ

18,642

45,318

4,052

-

4,052

4,051

8,103

37,213

18%

4,176

Total JVs

435,647

3,359,044

144,397

62,673

81,724

1,230,888

1,375,285

1,666,271

45%

29,564

LandSource

Communities Development LLC

Financial

Land

2003

National

-

1,737,132

-

-

-

1,351,165

1,351,165

(40,774)

103%

32,076

Others

341,165

2,470,298

320,638

59,740

260,898

832,910

1,153,548

1,003,073

53%

73,318

Total bank debt

776,812

$       

7,566,474

$

465,035

$            

122,413

$            

342,622

$         

3,414,963

$                 

3,879,998

$

2,628,570

$

60%

134,958

Land seller and CDD debt

8,920

-

8,920

89,501

98,421

Total debt

473,955

$            

122,413

$            

351,542

$         

3,504,464

$                 

3,978,419

$

10 Largest JVs

44%

31%

24%

36%

64%

LandSource

23%

-

-

40%

-2%

Other

33%

69%

76%

24%

38%

Total

100%

100%

100%

100%

100%

4

Detailed Joint Venture Information

New -

Types of Joint Venture Partners

As of February 28, 2009

(Dollars in Thousands)

We have a diverse group of joint venture partners:

JV with land owners / developers: provides access to homesites owned or controlled by

land owner/developer

JV with other homebuilders: joint bid on land parcels smarter way to purchase;

Examples include Centex, Pulte, KB Home and Toll Brothers

JV with financial partners: partner brings the majority of the capital while Lennar

manages the venture; Examples include Morgan Stanley, MSD Capital and Stockbridge

JV with strategic partners: partner brings specific expertise (e.g., commercial or infill

experience); Examples include LNR Property Corp. and Intergulf

Partner Type

Gross Recourse

Net Recourse

Total Debt

JV Debt

Total JV

Debt

Reimbursement

Debt

Without Recourse

Total JV

Total JV

to Total

Remaining Homes/

Assets

to Lennar

Agreements

to Lennar

to Lennar

Debt

Equity

Capital Ratio

Homesites

in JV

LandSource

1,737,132

$     

-

$                     

-

$                     

-

$                

1,351,165

$                 

1,351,165

$

(40,774)

$    

103%

32,076

Land Owners / Developers

870,945

103,066

-

103,066

228,085

331,151

392,400

46%

35,915

Other Builders

887,787

127,709

8,862

118,847

270,219

397,928

404,710

50%

15,644

Financial

3,442,969

87,568

50,878

36,690

1,429,259

1,516,827

1,551,317

49%

37,596

Strategic

627,641

146,692

62,673

84,019

136,235

282,927

320,917

47%

13,727

Total bank debt

7,566,474

$     

465,035

$            

122,413

$            

342,622

$       

3,414,963

$                 

3,879,998

$

2,628,570

$

60%

134,958

Land seller and CDD debt

8,920

-

8,920

89,501

98,421

Total debt

473,955

$            

122,413

$            

351,542

$       

3,504,464

$                 

3,978,419

$

5

Detailed JV Debt Disclosures

6

Detailed JV Debt Disclosures

New –

JV Composition by Type of Debt

As of February 28, 2009

(Dollars in Thousands)

Joint ventures with recourse debt have substantial assets and equity to support the

debt as of February 28, 2009 as follows:

Feb-09

Nov-08

Nov-07

Nov-06

JVs

with

recourse

debt

36

41

75

94

JVs

with

non-recourse

debt

23

27

36

44

JVs

without

debt

36

48

103

123

_________________________________________________________________     

JV total

There has been significant progress on reducing the number of joint ventures, with

extra focus on joint ventures with recourse debt

Total Assets

2,244,818

$  

Total Liabilities

1,244,814

$  

Total Equity

1,000,004

$  

95

116

214

261

7

$1,764

$1,034

$520

$474

Nov-07

Nov-08

Feb-09

Detailed JV Debt Disclosures

New -

Lennar Cash Payments for Recourse Reductions

Lennar cash payments to re-margin or

pay-down loans as part of the

recourse reductions

$156

$199

(Dollars in Millions)

$19

Nov-06

8

Detailed JV Debt Disclosures

Detailed JV Debt Disclosures

New -

New -

Future JV Debt Maturities

Future JV Debt Maturities

(Dollars in Thousands)

The

above

amounts

are

maturities

per

current

debt

agreements

and

are

not

estimations of Lennar’s cash payments that will be made to reduce debt balances

Debt maturities are typically three years, but are often restructured or refinanced at

the end of that three-year period

Recourse debt reductions occur from a variety of transactions: for example,

contributions from all partners (i.e., joint and several debt), asset sales and finance

restructurings

Principal maturities of JVs' debt are as follows:

Debt Without

Gross

Net

Debt Without

Recourse

Recourse Debt

Reimbursement

Recourse Debt

Recourse To Lennar

To Lennar

to Lennar

Agreements

to Lennar

Excluding LandSource

For LandSource

Totals

2009

214,553

$                     

8,862

$                  

205,691

$                     

528,157

$                          

1,107,165

$        

1,849,875

$   

2010

100,895

25,228

75,667

698,416

-

799,311

2011

63,018

50,878

12,140

813,832

-

876,850

Thereafter

86,569

37,445

49,124

23,393

244,000

353,962

465,035

122,413

342,622

2,063,798

1,351,165

3,879,998

Land seller and CDD debt

8,920

-

8,920

76,087

13,414

98,421

Total JV debt

473,955

$                     

122,413

$             

351,542

$                     

2,139,885

$                       

1,364,579

$        

3,978,419

$   

9

Detailed JV Debt Disclosures

Condensed Balance Sheets

(Dollars in Thousands)

February 28,

2009

2008

2007

2006

Assets:

Cash and cash equivalents

103,950

$      

135,081

$  

301,468

$    

276,501

$    

Inventories

7,053,539

7,115,360

7,941,835

8,955,567

Other assets

408,985

541,984

827,208

868,073

7,566,474

$   

7,792,425

$

9,070,511

$ 

10,100,141

$

Liabilities and equity:

Accounts payable and other liabilities

959,485

$      

1,042,002

$

1,214,374

$ 

1,387,745

$  

Debt

3,978,419

4,062,058

5,116,670

5,001,625

Equity of:

Lennar

776,812

766,752

934,271

1,447,178

Others

1,851,758

1,921,613

1,805,196

2,263,593

Total equity

2,628,570

2,688,365

2,739,467

3,710,771

7,566,474

$   

7,792,425

$

9,070,511

$ 

10,100,141

$

Lennar's equity in JVs

30%

29%

34%

39%

Partner's equity in JVs

70%

71%

66%

61%

Debt to total capital ratio

60%

60%

65%

57%

Debt to total capital ratio (excluding LandSource)

50%

50%

61%

59%

November 30,

10

Detailed JV Debt Disclosures

Detail of Total Debt Balances

(Dollars in Thousands)

February 28,

2009

2008

2007

2006

Lennar's net recourse exposure

351,542

$      

392,450

$  

794,934

$    

1,102,920

$  

Reimbursement agreements from partners

122,413

127,428

238,692

661,486

Lennar's maximum recourse exposure

473,955

$      

519,878

$  

1,033,626

$ 

1,764,406

$  

Partner several recourse

243,366

$      

285,519

$  

465,641

$    

930,177

$    

Non-recourse land seller debt or other debt

84,660

90,519

202,048

259,191

Non-recourse

bank

debt

with

completion

guarantees

-

excl.

LandSource

784,779

820,435

1,432,880

699,588

Non-recourse

bank

debt

with

completion

guarantees

-

LandSource

-

-

-

248,850

Non-recourse

bank

debt

without

completion

guarantees

-

excl.

LandSource

1,040,494

994,580

748,412

1,099,413

Non-recourse

bank

debt

without

completion

guarantees

-

LandSource

1,351,165

1,351,127

1,234,063

-

Non-recourse debt to Lennar

3,504,464

$   

3,542,180

$

4,083,044

$ 

3,237,219

$  

Total debt

3,978,419

$   

4,062,058

$

5,116,670

$ 

5,001,625

$  

Lennar's maximum recourse exposure as a % of total JV debt

12%

13%

20%

35%

November 30,

11

Detailed JV Debt Disclosures

Lennar’s Net Recourse Debt Exposure

(Dollars in Thousands)

February 28,

2009

2008

2007

2006

Sole recourse debt

-

$                

-

$            

-

$              

18,920

$      

Several

recourse

debt

-

repayment

74,840

78,547

123,022

163,508

Several

recourse

debt

-

maintenance

144,439

167,941

355,513

560,823

Joint

and

several

recourse

debt

-

repayment

151,047

138,169

263,364

64,473

Joint

and

several

recourse

debt

-

maintenance

94,709

123,051

291,727

956,682

Land seller and CDD debt recourse exposure

8,920

12,170

-

-

Lennar's maximum recourse exposure

473,955

519,878

1,033,626

1,764,406

Less joint and several reimbursement agreements

with Lennar's partners

(122,413)

(127,428)

(238,692)

(661,486)

Lennar's net recourse exposure

351,542

$      

392,450

$  

794,934

$    

1,102,920

$  

November 30,

12

Corporate Governance

13

Corporate Governance

Corporate Governance

New –

New –

Summary of our JV Corporate Governance

Summary of our JV Corporate Governance

Joint ventures have been a successful and consistent business strategy for Lennar since the mid-

1970s

Each joint venture is governed by an executive committee consisting of members from each of the

partners of that JV

We are the managing JV member in approximately 70% of our joint ventures

Each quarter we perform a comprehensive review of both our wholly-owned and joint venture

assets

Our internal audit department periodically tests our joint ventures to ensure that we are in

compliance with the operating agreements and other fiduciary responsibilities

In transactions with joint ventures in which we are a partner:

When

we

purchase

land

from

the

JV

–

we

defer

our

pro-rata

share

of

the

joint

venture’s

earnings until the home is delivered to a third party

•

We buy homesites

in arms-length transactions

•

Purchases are approved by joint venture partner(s)

When

we

sell

land

to

the

JV–

we

defer

a

portion

of

the

profit

equal

to

our

ownership

%

until

the land is sold to a third party

In both transactions above, any loss that is generated is recognized at the time of the

transaction and not deferred

14

Corporate Governance

Corporate Governance

New –

New –

Summary of our JV Corporate Governance

Summary of our JV Corporate Governance

Lennar

has

never

siphoned

cash

from

one

joint

venture

to

another

JV

Lennar has never pledged its interest in any joint venture for the benefit of

another JV

Lennar does not use its investment in one joint venture as collateral for debt

in another joint venture

Lennar

does

not

cross

collateralize

debt

between

different

joint

ventures

Funds are never commingled among joint ventures

Lennar currently has no specific performance agreements to purchase

homesites from its joint ventures

15

Corporate Governance

Corporate Governance

New -

New -

JV Interests Are Prohibited From Being Pledged

JV Interests Are Prohibited From Being Pledged

Example –

sample language in a loan agreement that prohibits the pledging

of our interest in one joint venture for the benefit of another:

“Borrower will not suffer to occur or exist, whether occurring voluntarily or

involuntarily, any change in, or Lien or Encumbrance with respect to, the

legal or beneficial ownership of any interest in Borrower, provided, that

Borrower may cause or permit transfers of membership interests in Borrower

to Persons solely owned and controlled by Lennar or Partner.”