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Lennar came clean this morning, detailing off balance sheet JVs and unconsolidated entities. We are running the model on Lennar and will have a detailed opinion by the end of the week. In the mean time, here is the 8k addendum. Below that you can find the Bankruptcy Score chart for Lennar, to keep things in perspective. The chart was created before gaining access to this new info (we were actually more conservative).

Lennar has declared aggressive management of assets and published off balance sheet debt

 Unconslidated Entities (Excluding LandSource, Heritage Fields & Kyle)LandSource, Heritage Fields & Kye AcquisitionTotal Unconsolidated Entities
Lennar net recourse exposure$            911,324  $          911,324
Reimbursement agreements w/partners$            256,250  $          256,250
Partner several recourse$            676,912  $          676,912
Non-recourse debt$        1,338,575 $  2,355,332 $      3,693,907
 $        3,183,061 $  2,355,332 $      5,538,393
    
Equity of the unconsolidated entities:   
Lennar$            964,362 $     112,858 $      1,077,220
Others$        1,229,306 $     770,024 $      1,999,330
 $        2,193,668 $     882,882 $      3,076,550

You know what they say, "A picture is worth a thousand words". Five and a half billion dollars is a lot of money to hide off of the balance sheet. Now that they have given us a taste, I want detailed performance numbers and asset values. Click the chart below if you need a larger view.

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According to the bankruptcy score, Lennar is in real trouble. This is more pessimistic than the previous Lennar analysis due to greater clarity. I will post a detailed report this weekend.