Company: LEN
Filing Date: 2025-10-03
Form Type: 10-Q
Source: 0001628280-25-044086
Chunk: 166

Company: LENNAR CORP /NEW/
Filing Date: 2025-10-03
Form: 10-Q
Item: Item 8
Chunk 166
---
 of payments with regard to carried interests if certain funds meet specified performance thresholds. We periodically receive advance distributions related to the carried interests in order to cover income tax obligations resulting from allocations of taxable income to the carried interests. These distributions are not subject to clawbacks but reduce future carried interest payments to which we become entitled from the applicable funds and are recorded as equity in earnings (losses) in the condensed consolidated statement of operations. Our investment in the Rialto funds totaled $134.3 million and $140.1 million as of August 31, 2025 and November 30, 2024, respectively. 

As of August 31, 2025 and November 30, 2024, we had strategic technology investments in unconsolidated entities of $238.0 million and $239.3 million, respectively, accounted for under the equity method of accounting. Our strategic technology investments through our LENX business help to enhance the homebuying and homeownership experience, and are an important part of our focus on using technology to reduce costs. Details regarding these investments are included in Note 4 of the Notes to Condensed Consolidated Financial Statements.

Option Contracts

We often obtain access to land through option contracts, which generally enable us to control portions of properties owned by third parties (including land banks) and unconsolidated entities until we have determined whether to exercise the options. Since fiscal year 2020, we have been increasing the percentage of our total homesites that we control through option contracts rather than own.

The table below indicates the number of homesites to which we had access through option contracts with third parties and unconsolidated JVs (i.e., controlled homesites) and homesites owned (excluding homes in inventory):Years ofAugust 31, 2025Controlled HomesitesOwned HomesitesTotal HomesitesSupply Owned (1)East111,916 913 112,829 Central135,050 3,789 138,839 South Central164,849 1,919 166,768 West95,300 3,133 98,433 Other4,649 1,561 6,210 Total homesites511,764 11,315 523,079 0.1 % of total homesites98%2%Years ofAugust 31, 2024Controlled HomesitesOwned HomesitesTotal HomesitesSupply Owned (1)East 90,402 16,172 106,574 Central89