Lennar Corporation (LEN)’s 4th Quarter 2014 Financial Results Conference Call Transcript

Michael Doll, CS

Ok thank you.

Stuart Miller. Chief Executive Officer

You bet.

Operator

We have a question comes from Michael Rockland with Mary Lynch your line is open

Peter Gallow, ML

Hi guys it is actually Peter Gallow I’m actually on for Mike. Good morning or afternoon at this point. Just a couple of housekeeping question for Realtor for the advance security interest thing is that one time thing this quarter or is something a reoccurring cash for going forward. What is the best way to look at that?

Stuart Miller. Chief Executive Officer

For this quarter it represented the actual last two and half year cash flow income calculation so it will be recurring but at a significant lower amount age next year. It is going to sustain through to next year as well.

Peter Gallow, ML

Ok. In your comments Stuart I think you called out some statistics in terms of order growth, do you have anything similar in your order growth or everything included.

Stuart Miller, Chief Executive Officer

You know everything included continue to be a marketing avenue that continues to be a differentiator but we haven’t got everything included question in a long time. But we still think it sets us apart in the market in a positive and instructive way. You know I always thinks plagiarism is the best form of flattery when we see other builder’s kind of jump on that kind of program which is what we have started to see that is something that attracts a lot of attention and sets us apart in a very positive light. Everything included in this program we have focus on a lot we think we can be a lot more efficient and effective in harvesting cost reduction as we deliver greater quality in a broader product offering. There is certainly  segment of the market we want to customize we are not the builders of that segment of the market but we do offer an extraordinary value with our everything included program and that value is what have driven our sales as well as it as. Even with that said our everything included program has we have grown it over time thus enable some personalization so we broaden we offering to a solid range of the market and certainly enable us to capture more than our share of the business.

Peter Gallow, ML

Ok thanks.

Stuart Miller, Chief Executive Officer

Let’s make the next question the last question.

Operator

Our final question comes from Jade Remanie from KBW your line is open

Jade Remanie, KBW

Hi thanks for taking the question, just want to ask on Realtor, if you could comment on your view of the risk retention rules, whether you see this as a benefit whereas Realtor has given the benefit of a 5 year holding period and the 5% risk retention requirement.

Bruce Gross, Vice President & Chief Financial Officer

We are so happy that we have another Jeff joining in. From our perspective we look at it as a positive. In terms of the competitive that are set out there it’s going to be difficult for a lot of folks to do that because of some of the edge funds that have come with our 5 year retention in so we think that number 1 that is very good and number 2 is the 5% rule. We have a multi-disciplinary fund raising capabilities that our investors look for returns that fills from one end of the spectrum to the other so I think if we are going to be pre-uniquely qualified to be a buyer there we also expect before the rules goes into effect which is a little bit less than 2 years there will be a rush in increase supply. In which we are well position for.