Exhibit 99.1
Homesites Owned & Controlled Additional Disclosure
November 30, 2004
Controlled
Owned Optioned JV Total
East 23,559 47,474 18,487 89,520
Central 24,355 24,060 14,916 63,331
West 39,826 22,380 41,010 103,216
Total 87,740 93,914 74,413 256,067
34% 37% 29% 100%
November 30, 2003
Controlled
Owned Optioned JV Total
East 18,923 32,459 16,676 68,058
Central 22,345 20,159 20,780 63,284
West 32,625 31,133 13,838 77,596
Total 73,893 83,751 51,294 208,938
35% 40% 25% 100%
Types of Option Contracts
3rd Party
JV
Land Bank
Lennar Interest
Lennar has no equity invested and no membership interest
Lennar is JV member with equity interest generally ranging from 12.5% to 50%
Lennar has no equity invested and no membership interest
Land Development
3rd party completes development
Lennar or other JV partner completes land development and receives management fees
Lennar manages the development and receives management fees
Deposits
Generally equal to or less than 10% of purchase price
Generally range from 0-15% of purchase price
Generally equal to 10-15% of purchase price
Takedown Schedule
Structured takedown with price escalators
Structured takedown with price escalators
Structured takedown with price escalators
Accounting Example For Land Purchased From JV
Land Purchase $40,000
Lennar’s Results
Purchased by Lennar
Land basis $40,000
Development costs $20,000
Finished homesite $60,000
Construction costs $150,000
Home cost of sales $210,000
Sales price $300,000
Profit $90,000
Gross margin 30.0%
Optioned from JV
Finished homesite $80,000
Construction costs $150,000
Home cost of sales $230,000
Sales price $300,000
Profit $70,000
Plus deferred JV profit $10,000
Total profit $80,000
Gross margin 26.7%
JV’s Results
Purchased by JV, optioned by Lennar
Sales price Lenner $80,000
Profit $20,000
Lennar’s 50% interest $10,000
(deferred by Lennar until home is delivered)
Gross margin 25.0%
The amounts shown above are hypothetical and do not represent any of our joint venture transactions in particular or in the aggregate.