Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 103

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 8
Chunk 103
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Lennar Corporation and SubsidiariesNotes to Condensed Consolidated Financial Statements (Unaudited) (Continued)

LMF Commercial - loans held-for-saleLMF Commercial originated commercial loans as follows:Three Months EndedNine Months EndedAugust 31,August 31,(Dollars in thousands)2025202420252024Originations (1)$177,837 236,665 486,677 449,000 Sold172,643 145,325 458,466 301,610 Securitizations248 9 (1)During both the three and nine months ended August 31, 2025 and 2024, the commercial loans originated were recorded as loans held-for-sale, which are held at fair value.Investments held-to-maturityAt August 31, 2025 and November 30, 2024, the Financial Services segment held commercial mortgage-backed securities (“CMBS”). These securities are classified as held-to-maturity based on the segment's intent and ability to hold the securities until maturity and changes in estimated cash flows are reviewed periodically to determine if an other-than-temporary impairment has occurred. Based on the segment’s assessment, no impairment charges were recorded during the three or nine months ended August 31, 2025 and August 31, 2024. The Company has financing agreements to finance CMBS that have been purchased as investments by the Financial Services segment.Details related to Financial Services' CMBS were as follows:(Dollars in thousands)August 31, 2025November 30, 2024Carrying value$133,558 135,646 Outstanding debt, net of debt issuance costs123,615 126,164 Incurred interest rate3.4%3.4%August 31, 2025RangeDiscount rates at purchase6%—84%Coupon rates2.0%—5.3%Distribution datesOctober 2027—December 2028Stated maturity datesOctober 2050—December 2051MultifamilyThe Company is actively involved, primarily through unconsolidated funds and joint ventures, in the development and construction of multifamily rental properties. The Multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select U.S. markets.The Multifamily segment (i) manages and owns interests in, funds that are engaged in the development of multifamily residential communities with the intention of holding the newly constructed and occupied properties