Hunterbrook Short Report Alleges Lennar Inflated Deliveries via $200M Spinoff Home Sales
LEN is trading near its 52-week low of $75.7 (5.6% above the low) on elevated volume (2.0× avg).
Summary
Hunterbrook Media published a short report alleging Lennar met Q3 delivery guidance by selling over 700 finished homes (~$200M) to its own spinoff Millrose Properties, with 356 purchases in the final week of the quarter. The report claims Lennar beat the lower bound of delivery guidance by just 340 homes while missing four other financial targets. Hunterbrook also flags economic inefficiencies: Millrose's ~5% net rental yield fails to cover 6.5-6.75% borrowing costs, and Millrose paid ~13% more than retail buyers after incentives. With CEO Stuart Miller holding 43% of Millrose voting power, the report questions whether Millrose acted against its own interest to bolster Lennar. Lennar shares fell 2.51% to $80.05 on the news. This follows Berkshire Hathaway's recent accumulation of Lennar shares, adding a notable contrast in investor positioning. Watch for Lennar's response and any regulatory or auditor scrutiny of the related-party transactions.
At the time of this announcement, LEN was trading at $79.94 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $19.2B. The 52-week trading range was $75.70 to $133.76. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.