Financial Thank you, for today, today. Co-CEO Gross here, heard well. just you and with and President; and and Controller everybody, have Vice Services, Miami Lennar Financial our we Bessette, our in Bruce and is Collins, good Jon Jaffe, Diane our who you thank together President; few CEO I'm others Chief joining David morning, Officer; from, as of our
going cycle overviews. some an overview, a operating strategic Jon after macro introductory overview give and of usual, operational is company, As my cost, other going time to the remarks, updating construction and give I'm to
then, and follow-up highlights, some you like give as can course, one ask our question usual, as of yourself usual, And please a guidance so to And as I'd we'll one full and detailed going we for As year our have accommodate limit period. many along XXXX. to is question-and-answer with financial third quarter to limited that Diane that possible.
however, all to I for begin, of we associates But of of all would Horton. before of on behalf loss Don express, industry recent the pioneer like another the I our Lennar the feel sadness of
compete our succeed with sometimes to it learned for accomplishments. all admiration their their be is sometimes for and our and While field reference We their across their and be pushed each have we are geographies, in is aggressively other, from the We comparative This failures humble homebuilders competitors. learned not from and always over we very years of we admired. by who those successes and are accomplishments. business best to easy respect
express our on condolences MDS, family, well was as and the greatest a the we learn, most with success Horton carry success to climbed the tremendous types we look you from spanned associates Don to as D.R. to beginnings Horton's admire and to To of tremendous to name his as homebuilders D.R. humble within forward among sincere Horton live, to industry. continuing legacy. Don's He our decades. Don to compete
remarks of my pleased another solid to for and consistent begin operating today. me let We're quarter said, that With Lennar. very results report
[indiscernible]. We half first we pace the as plan have our have execute XXXX, sales and driven effectively continued to of operating pace production throughout
date as a changing to been to market adjust from better positioned it be sheet has While never balance the simply results to we conditions market as have strategy used even changed. to point consistent have our a remainder of to operating to and and as driven margin production have excellent we as of for unfolds to execution XXXX company program adjustment a beyond. enable able This operating
year. deliver started We we keeping delivered for on and approximately XX,XXX target approximately we quarter, to the XX,XXX sold us second homes, XX,XXX homes homes. the In approximately XX,XXX homes approximately
consistent enhance we quarter, flow and believe continue flow, as our maintain even and manufacturing continue to flow similar that model production volume, as drive to improving to well growth higher in target We've costs, predictability. bottom continuously expect cash we order sales, maintain to cash sell even will effective production as order deliver drive capital consistency rate minimize to start, production our a we in all flow, returns. allocation continued our and Next line a to and
just-in-time primary higher homesite a enable capital allocation growth returns, flow. higher returns that higher pure-play, drive on equity. believe on We that asset-light model will strategy a by is supported migrate manufacturing to be simultaneous assets and delivery flow a Our will to cash goal will returns shareholder enabled program that ultimately cash durable and
As state, enables this is margin all mechanism the we that to migrate happen. springing our to desired end
our than up somewhat margin XX.X% XX.X% quarter. from higher last quarter, expected This was at
as for last XX.X%. of we Next our margin year's margin XX% approximately depending And year full the on quarter, same we the driving full market approximately expect to year, be margins on to be focused conditions. remain
we a see. require the that that we will on substantially understand we through before, while year, market interest confidence conditions, I story in partially higher will and as said accomplishment have rest depend go we our will the consumer require That rates margin. quarter the remainder that backlog, While as of will fourth embedded that, is of
X.X X.X%. balance of additionally, been to over have million million flow to and have as drive continue refining capital $XXX $XXX our improve to of platform, repay shares with allocated senior homebuilding a to our approximately repurchase debt to continued stock. we over we strong million of sheet total we've operating debt While cash just And ratio
just in sizable a our crafting for structural strategy I are cash While allocation in our we minutes. continue few which pursuit me address we of will discuss a objectives capital let environment. further strategic hold the of on book, $X.X economic billion But our to briefly
confidence. sometimes are environment Overall, demand The rates relatively consumer for there macroeconomic constructive remains by and wavering are There homebuilders. limited challenges interest the strong, remains affordability, housing for opportunities. and
underproduction or to attainable robust over affordable that seeking the remains for chronic Demand supplied enables an it shortage additionally be point, with transact. can driven support interest supply. the price of of rate consumer problematic housing stock if Additionally, families a attainable is decade by housing
the our rates interest felt a ended. gradual quarter, to lower started confident name. moderated inflation a market that to housing supply consumers affordability are adjusting as persistent at strong rates before will employed as remain the the dropping Concurrently, a for and This as rates on shortage, as Through new they was of began X.X% market very rise compensation will often housing of and interest as remained most quarter market believe chronic climb the strength. well X.XX% quarter, is but impact well. Then constructive that foundation they They approximately the employed. have the and stubborn again second their
those incentive intersection affordability. have worked buy to incentives have and of structures rates constraints have moved interest and closing affordability capture capital that and to to down. and balance to range access homebuilders the downs increased In purchaser from pickups to with needs particularly as to and cost efficiencies at adjust, able have strong meet rate up to reduce response, demand new Those transact. designed their price out decreased Homebuilders, reductions been purchases incentives ready by interest using the enable drive sheets and
and a continued we what simply to is execute our manufacturing in pure-play our model homebuilding asset-light are strategy. is second put, strategy land-light, that has operating core to production That that have quarter, we backdrop, and this refine Against been refining.
last noted been our model. have begun quarter, refining -- I have we As manufacturing we
platform efficiency XX divisions. also while platform have and continue has and more that the products. market. a homebuilding needs in land-light add market, of volume, and, volume to healthier each of we meet We manufacturing supply consumer, to we balanced we space to to across driving needed We'll to us building our engineer been our our to homes manufacturing. therefore, migrating for continued with offer homebuilding housing actively pure-play We've the production and We and operating shelf our maintained structure a contribute refine start attainable enables the
our and together allocation generate return consistency flow. In our capital returns, with grown we us substantial and equity. program our returns as across platform, and inventory volume have enhance enhanced so, shareholder enable inventory simultaneously ultimately, doing constructive sales production on cash turn to The on of we
to pure-play. turn me Let
fill that affordable We chronic are builds a markets supply the housing shortage. that strategic in homebuilder
We all noncore to exposure reduce continue assets. to will
are producing intensifying efficiencies attainable expensive products fees getting are well. labor our operations. our We the impact our of by expensive, affordable productivity more on and through material focus increasing more is We costs can reduce across cost and rising platform. housing and as Land of only been have
Our focus just been has that. on doing
our us that our We in start products pace engineered, our to are cycle engineered using logistics consistent production that to products work and trade we run the with cycle community partners refine and way to are core build we more time we enabling and our are value to building call and reduce efficiencies carefully that production.
primary homes have will ownership. who and purchasers can dictate, attainable payment a achieve as are use We we building afford mortgage. qualify to to a purchase home conditions incentives and primary for and market And purchasers enable for down
approaches help build a We have also to healthy market. housing on working continued additional product more
can for are There aspired can professionally order have today's families to yet need and markets. scattered they and efficiencies that important are We But attainable or in and rate need. in additional many homes can't future Those who single-family that building can to a focus believe to rent characteristics purchasers credit environment mortgage that. parks. who production with we We have intensified down need. our provide payment to professional across don't owned that and and make an scale their the lifestyle on the qualify community single-family build-to-rent their backyards, schools rents we additional need fill for build cost housing interest afford
families. quad primary those for and investor Institutional rentals, buyers this to Many void thinking. competes class homeowners the that is criticized market that the with fill owned have purchase for professionally product
in blue-chip engaged to build in rental an sheet also are off-balance We configuration. attainable repurposing product multifamily our platform
divisions, product with a equity be be our homebuilding will core called built build will We product, series. by capital. our built another will Emblem singular private but It
across successfully We history have strong a of the multifamily building products country.
and products off-balance build configuration, sheet those continue vital sheet. our this building been have balance product We to attainable an to encumbering expect we without in
we Concurrently, that been engagements. are prior has deployed repatriating multifamily in capital
closing and those process sell the -- I. I LMV LMV We the There are are contract working I Fund asset assets of to buyers, buyers. and of under with are each through multiple we Fund
on in cash in result the of proceeds We expect to strategy monetize also and second cash on pure-play multifamily a second asset-light book, and in the stay as assets we are of will other of returns, that best On XXXX. approximately Also, are the transactions half the may reviewing for of assets second our XXXX. we million the could continue assets increasing these to laser-focused half the strategy throughout and of combined additional we generating close decide half basis, year. $XXX regularly
So let me turn to just-in-time.
a have is complementing Every a manufacturing system. that to homesite ready be with needs until a with need and just-in-time our build. going sheet off to permit, are to those model durable and option balance be built We homesite homesites been finished we delivery home
on focus lumber have to land continue excellent just to we continue appliances, this we make like delivery We and program a progress for in and just-in-time for regard.
or option many developers. and asset-light private executed always no and with land-light of land option deals While executed and and are in are capital our Those developers by durably with also not developers structurally deals creating deals strategies We we markets. and equity capital. -- structured landowners always only available, become negotiating third-party have permanent there with both land
worked of delivered platform the option held private where purchased basis land This we a for to as to land be platform with developed purchase is series started. a delivered a are to risk manufacturer and create homesite is ultimately have backstop to manufacturer.
partners homes developed land manufacturer on to rolling without and just-in-time equity that Accordingly, and ready the be to a
our enhanced By downs on materially balance we and through strategy, and the generated flow land-light we cash ups our and sheet liquidity. of our focusing interest have consistently enhanced have changes and consistent rate
of debt-to-capital is ratio X.X% as Our homebuilding our $X.X sheet, ratio billion a I drawn cash revolver. noted $X with on on with debt-to-capital hand and earlier, balance situated --
We capital have allocate the flexibility strategically. to
First, of appropriate course, debt, paying and grow repurchasing retiring dividends shares to of stock.
while also Lennar
many which move to the very leverage that have we too returns much aware our limited, our on of that our balance We and are accumulated cash sheet, limits higher. is suggested ability have
migration understood While we but as have of just have evolved to patient the involved. the focused remained remained also the long-term concern, we the durability structures on have we configuration, land-light not have
land into programs, equity capital fickle. our advantaged Private volume programs. have workings driving strategic insights of gained be for can the By these refined we
Although He and, Millett like in for thank over partner selfless evolve and would Angelo we in and this being an years. helping past truly in number to have been have been up a of mercenary ] relationships engagement. to any a has counterparty constructive evolution Ryan been the especially and incredible help, strategies Gordon of regard, homebuilding refined the questions partners make programs as I course, the With the [ the partner. never have the execution with these invaluable to durability land plumbing that answered system underlying in relationship of Ryan's the for and
vehicle order inform Building on option land that returns market we last I can last were a days, of capital focus XX draft earnings have to homesites that a distribute the our and we developed recycled am our Lennar, capital in most our SEC we that create our the remaining on to you spin-off to registration experience. call, to announced On rekindling over of few permanent strategic we a progress pleased and a weeks homesites confidentially ago. new into statement submitted shareholders. substantial made appropriate to
looking of associated to debt. for we which to expect at spin the $X off allow a goal of treatment land-light company is assets. currently land no billion $X are sheet new land strategy, a The of billion public the approximately with would that off-balance to into spin-off accelerate our We
us spinoff for excited we We spun-off opportunity are that we the the will about operation developed believe innovations of that the this entity. bring the have through
have public option to agreements just-in-time from Lennar new back the homesites purchase finished purchase independent on spinoff, Lennar. a will the will completely be Following basis. company
Fred spin-off review progress process or and early we and bringing comment this the soon still by forward specific completion cannot be by timing look as dedicated is has led further to project timeline completed. we in in guarantee but providing can, future. there on the an team, been Our Rothman we fully SEC, to we to the transaction life the you of with ongoing no to will that as Because are the the on but update
alongside would the After have provide for to it other permanent the other shareholders compatible bucket consistent and land capital would new dependable with continue and inventory reduce in books, options. to thrive spin-off, Lennar. relationships will on existed of company it additive, be capital future would Such would transaction another distribute capital, that Lennar's words, and a
flow to strong consistent repurchase Our with balance sheet would to remain continue pay very and stock. down cash earnings debt and to
production So Lennar has to platform me continued are we to our the and have and and say, at execute conclude let quarter, as we success. and we busy Lennar, drive been platform future build operating continuing modernize sales. It and short-term consistent in continued while the a we for and productive upgrade
company. and second operational has Our another XXXX quarter strategic our of for success been
be demand While to needs market to conditions strong, have know that chronic ways filled. We have housing is we supply needs. remained there learned the and challenging, consistently and is a found market shortage address
to will our shortage the we that across meet markets. continue We housing to know drive persists production
as if and be we Fed cut subside demand and the and rates continue we If well the to prepared. produce we will supply. going rates, said, is and be market to actually to will interest activated, that not, begin normalize, believe will With add to volume pent-up
access rates pent-up are strong though that, the demand has higher found to prepared. well we For have market. ways remained sticky, Even housing
even Given for greater continues affordable we success well see as short supply. the execution, are to positioned offerings demand consistent extremely for strong
execute for to extraordinarily consider upon Perhaps future. balance our thoughtful importantly, sheet opportunity flexibility most strong us and innovation affords our and
model and We to will execute. manufacturing focus continue on our
model on exposure our and noncore reduce to pure-play We assets. business will focus
balance and growth, allocate to asset-light an to will to we to And repayment appropriate. sheet. capital continue continue homesite just-in-time repurchases delivery as debt stock drive and will We
future. We short-term, have fortifies return pursue shareholders stock we our and to that emphasize and the to buyback, while dividends our the luxury shareholders we while to continue distribution strategic execute in also, to through flawlessly capital I also
clearly have We an position. earned enviable
forward expect positioned of look much well the to and are XXXX, to see more I successful we As same. a
of to by new drive and grow, are We continue and predictable perform levels to that design, Lennar consistent confident will we performance.
margin. guiding do are approximately we to margin. homes next XX,XXX this to a deliver year closings to We XX% quarter And XX% expect XX,XXX a little with a with approximately over XX,XXX
expect $X drive to as to look also continue we excess of billion very stock year. in repurchase very cash We XXXX of We flow. a to in strong forward strong
focus, me with And it for effort and that, that, I associates want extraordinary to And their for thank tremendous let of to turn over Jon. Lennar talent. the
