MIAMI, Sept. 14, 2017 /PRNewswire/ -- Lennar
Corporation (NYSE: LEN and LEN.B), one of the
nation's largest homebuilders, announced today that in anticipation
of speaking at an investor conference this week and in advance of
its third quarter 2017 conference call, it is providing new orders
and deliveries, as well as information on the impact from the
recent storms.
In an unprecedented occurrence, two back-to-back major
hurricanes affected Lennar's communities in Texas, Florida, Georgia and South
Carolina, which markets in total represent approximately 40%
of the Company's annual homebuilding
revenues.
For the three months ended August 31,
2017, Lennar had 7,610 new orders and 7,598 deliveries
including unconsolidated entities, which increased 8%
and 12%, respectively, compared to the three months ended
August 31, 2016.
The first storm, Hurricane Harvey, impacted the Houston, San
Antonio and Austin markets.
Despite the record-setting rainfall and flooding, Lennar incurred
no flood damage to its homes in any of its active communities.
Today, all of its communities in the state of Texas are currently open for sale. However,
Hurricane Harvey did impact approximately 120 new orders and
deliveries in the third quarter. Hurricane Harvey is also
expected to impact approximately 130 deliveries in the fourth
quarter ending November 30, 2017.
The second storm, Hurricane Irma, impacted all of our
Florida markets as well as our
Atlanta and Coastal Carolina
markets. In as much as this storm has only recently passed,
and based on a very preliminary assessment, Lennar believes there
to be only minor damage to its communities from the storm.
Although it's still early in the assessment process, the short-term
impact of Hurricane Irma will most likely delay
approximately 700 deliveries from the fourth quarter of 2017
into fiscal 2018.
Stuart Miller, Chief Executive
Officer of Lennar, said, "Our thoughts and prayers are with those
who were impacted by the storms, and we appreciate the hard work of
our associates and trade partners diligently working on the
clean-up efforts. We have an extensive crisis protocol from
preparation through recovery. Lennar associates and our trade
partners safely secured our communities in advance of these storms
and have been on the ground quickly assessing the damage and
beginning the recovery process. I would like to express my
appreciation to all of our associates for their diligent work in
these difficult times, and we are happy to report that all of our
associates are safe and most are now back and refocused on
business. In addition, we believe we have adequate insurance
coverage to cover any expected losses."
Mr. Miller continued, "The expected shift of deliveries this
year not only takes into account damage from the storm but also
short-term labor challenges, power outages, potential delays in new
home utility connections and building department
inspection and permitting delays. Although we believe the
storm damage to be mild, we are in the early stages of assessment
and will provide more information on our third quarter earnings
call which we are tentatively scheduling for October 3rd, 2017."
Mr. Miller concluded, "We expect that the rebuilding effort will
result in increased economic activity and an increased demand for
new homes which will result in a broader spectrum of opportunity
for us as we look towards 2018. Our company is well
positioned with a strong land portfolio in these markets to fulfill
the shortage of housing that has been exacerbated by these
storms."
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's
largest builders of quality homes for all generations. The Company
builds affordable, move-up and retirement homes primarily under the
Lennar brand name. Lennar's Financial Services segment provides
mortgage financing, title insurance and closing services for both
buyers of the Company's homes and others. Lennar's Rialto segment
is a vertically integrated asset management platform focused on
investing throughout the commercial real estate capital structure.
Lennar's Multifamily segment is a nationwide developer of
high-quality multifamily rental properties. Previous press releases
and further information about the Company may be obtained at the
"Investor Relations" section of the Company's website,
www.lennar.com.
Note Regarding Forward-Looking Statements: Some of the
statements in this press release are "forward-looking statements,"
as that term is defined in the Private Securities Litigation Reform
Act of 1995, including statements regarding our belief regarding
the impact of the hurricanes on our communities, and on home
deliveries and new home orders, our belief that we have
adequate insurance coverage to cover expected losses, our belief
regarding the long-term opportunity of housing demands resulting
from the rebuilding efforts, and how we are positioned to take
advantage of this opportunity. Accordingly, these forward-looking
statements should be evaluated with consideration given to the many
risks and uncertainties inherent in our business that could cause
actual results and events to differ materially from those
anticipated by the forward-looking statements. Important factors
that could cause such differences include changes to our initial
assessment of the damage caused by the hurricanes to our
communities; our inability to meet the demand resulting from the
rebuilding effort; increases in operating costs, including costs
related to real estate taxes, construction materials, labor and
insurance, and our inability to manage our cost structure; changes
to our initial assessment that we have adequate insurance coverage
to cover expected losses caused by the hurricanes; additional
natural disasters or catastrophic events for which our insurance
may not provide adequate coverage; the possibility of a slowdown in
the real estate markets across the nation; reduced availability of
mortgage financing or increased interest rates; conditions in the
capital, credit and financial markets; changes in laws, regulations
or the regulatory environment affecting our business, and the risks
described in our filings with the Securities and Exchange
Commission, including our Form 10-K for the fiscal year ended
November 30, 2016. We undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
View original
content:http://www.prnewswire.com/news-releases/lennar-provides-third-quarter-2017-new-orders-and-deliveries-as-well-as-an-update-on-recent-storms-300519436.html
SOURCE Lennar Corporation