Lennar (LEN) Investor presentation summary

Asset-light transformation and business model evolution

• Transitioned to an asset-light model, shifting land ownership to third parties and focusing on manufacturing efficiency, reducing owned homesites from 174K to 11K and increasing controlled homesites from 69K to 486K between 2018 and Q1 2026.

• Inventory owned decreased from $16.6B to $10.5B, enabling capital-efficient growth and strong free cash flow for shareholder returns.

• Asset-light approach reduces risk of impairment and provides downside protection, with a fundamental shift in business model rather than incremental improvement.

Balance sheet transformation and capital efficiency

• Deliveries grew by 81% since 2018 without a proportional increase in owned inventory, maintaining a leaner balance sheet.

• Asset-light configuration halved the inventory that would otherwise be on the balance sheet, lowering the weighted average cost of capital by 13%.

• Strategy provides greater resiliency, with potential losses in stress scenarios significantly lower than during the Global Financial Crisis.

• Freed up $16.5B in cash, enabling $9.6B in stock repurchases and $6.9B in senior note retirements since 2018.

Focus on returns and capital allocation

• Asset-light model nearly doubles asset turn and improves return on equity compared to traditional on-balance-sheet approaches.

• Freed capital from asset-light deals funds additional land pipeline, supporting further growth.