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Lennar Takes Big Loss on Declining Land, Home Values

Lennar Corp., the Florida-based homebuilder with its operational headquarters in Aliso Viejo, reported a big quarterly loss Tuesday as it accounted for land and homes that aren’t as valuable as they used to be.

The company lost $514 million for the quarter ended Aug. 31, versus a profit of $207 million a year earlier.

Wall Street had expected a loss of $87 million for the recently ended quarter.

Revenue fell 45% to $2.3 billion.

Lennar saw $848 million in reductions and write-offs for land and housing projects under development in the quarter.

New home orders, or contacts to buy Lennar homes, fell 48% in the quarter. Closed deals for homes fell 41%. Lennar’s average selling price dropped to $296,000 from $316,000 a year earlier.

The company plans to continue cutting prices to sell homes, Chief Executive Stuart Miller.

“I don’t think anyone has seen the bottom yet,” Emile Haddad, Lennar’s Aliso Viejo-based chief investment officer, told the Business Journal last week.

The downturn at Lennar and other homebuilders has prompted speculation about the company’s commitment to big projects in Orange County, including Anaheim’s Platinum Triangle and the redevelopment of the former El Toro Marine base.

The company is delaying construction of homes in Anaheim but doesn’t plan to walk away from projects here, Haddad said.

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