(Disclosure: Rose Law Group represents Lennar.)
By Vincent Salandro | Builder
Strong fiscal first quarter results put Lennar on pace to achieve its goal of 10% growth for 2024. A continued alignment of production pace to sales pace and the utilization of pricing and incentives to navigate the demand environment were the foundation to first quarter results, according to the builder.
“Although affordability continued to be tested by interest rate movements, purchasers remained responsive to increased sales incentives, resulting in a 28% increase in our new orders and a 23% increase in our deliveries year over year,” executive chairman and co-CEO Stuart Miller said.
Miller said in the fiscal first quarter, ended Feb. 29, Lennar started 18,338 homes, sold 18,176 homes, and delivered 16,798 homes. For the second quarter, the builder forecasts starting and selling 21,000 homes and delivering between 19,000 and 19,500 homes, which would move Lennar closer to its goal of an even-flow manufacturing model. During the Lennar earnings call, Miller said an even-flow model would enhance cash flow, bottom line, and predictability for the home builder.
