Lennar aims for pure-play gains

Article Excerpt

LENNAR CORP. $136 is a spinoff buy. The company (New York symbol LEN; Manufacturing & Industry sector; Shares outstanding: 271.2 million; Market cap: $36.9 billion; Dividend yield: 1.4%; Takeover Target Rating: Medium; www.lennar.com) is one of the largest homebuilders in the U.S. The company will spin off its land acquisition business as a separate firm called Millrose Properties Inc. Investors will receive one Millrose share for every two Lennar shares they hold. The new shares will begin trading on the New York exchange on February 7, 2025, under the “MRP” symbol. Lennar will retain about 20% of Millrose’s shares, which it plans to dispose in a later transaction. The spinoff will turn Lennar into a pure-play homebuilder, while cutting its exposure to sometimes volatile land values. Lennar is a spinoff buy. buy…