Lennar Completes Spin-off of Millrose Properties
Lennar (NYSE: LEN) has completed the taxable spin-off of Millrose Properties (NYSE: MRP), distributing approximately 80% of Millrose's stock to Lennar stockholders. Each Lennar stockholder received one share of Millrose Class A common stock for every two shares of Lennar stock held as of January 21, 2025.
Millrose received $5.5 billion in land assets and $1.0 billion in cash from Lennar, with a book value of equity of approximately $5.8 billion. The company will have access to a $1.3 billion revolving credit facility, expandable to $2.0 billion. Millrose intends to qualify as a REIT and will operate as a homesite option purchase platform, initially serving Lennar with plans to expand to other homebuilders.
This spin-off advances Lennar's strategy to become a pure-play, asset-light home manufacturer, continuing its transformation from 19% controlled homesites in 2013 to 82% by the end of 2024.
Lennar (NYSE: LEN) ha completato la scissione tassabile di Millrose Properties (NYSE: MRP), distribuendo circa l'80% delle azioni di Millrose agli azionisti di Lennar. Ogni azionista di Lennar ha ricevuto una azione di Millrose Class A per ogni due azioni di Lennar detenute al 21 gennaio 2025.
Millrose ha ricevuto 5,5 miliardi di dollari in beni immobili e 1,0 miliardi di dollari in contante da Lennar, con un valore contabile del patrimonio di circa 5,8 miliardi di dollari. L'azienda avrà accesso a una linea di credito revolving di 1,3 miliardi di dollari, ampliabile a 2,0 miliardi di dollari. Millrose intende qualificarsi come REIT e opererà come piattaforma di acquisto di opzioni per terreni edificabili, servendo inizialmente Lennar con piani di espansione ad altri costruttori di case.
Questa scissione avanza la strategia di Lennar di diventare un produttore di case a basso impatto patrimoniale, continuando la sua trasformazione dal 19% di lotti controllati nel 2013 all'82% entro la fine del 2024.
Lennar (NYSE: LEN) ha completado la escisión sujeta a impuestos de Millrose Properties (NYSE: MRP), distribuyendo aproximadamente el 80% de las acciones de Millrose a los accionistas de Lennar. Cada accionista de Lennar recibió una acción de Millrose Clase A por cada dos acciones de Lennar que poseía a fecha del 21 de enero de 2025.
Millrose recibió 5,5 mil millones de dólares en activos de terrenos y 1,0 mil millones de dólares en efectivo de Lennar, con un valor contable del patrimonio de aproximadamente 5,8 mil millones de dólares. La empresa tendrá acceso a una línea de crédito revolvente de 1,3 mil millones de dólares, ampliable a 2,0 mil millones de dólares. Millrose tiene intención de calificar como REIT y operará como una plataforma de compra de opciones de terrenos residenciales, inicialmente sirviendo a Lennar con planes de expansión a otros constructores de viviendas.
Esta escisión avanza la estrategia de Lennar para convertirse en un fabricante de viviendas sin activos significativos, continuando su transformación del 19% de terrenos controlados en 2013 al 82% para finales de 2024.
레나르 (NYSE: LEN)는 밀로즈 프로퍼티스 (NYSE: MRP)의 과세 분할을 완료하고 밀로즈의 주식 약 80%를 레나르 주주에게 배포했습니다. 각 레나르 주주는 2025년 1월 21일 기준으로 보유한 레나르 주식 두 주당 밀로즈 클래스 A 보통주 하나를 받았습니다.
밀로즈는 레나르로부터 55억 달러의 토지 자산과 10억 달러의 현금을 받았으며, 자기자본 장부 가치는 약 58억 달러입니다. 이 회사는 13억 달러 규모의 회전 신용 시설에 접근할 수 있으며, 이를 20억 달러로 확장할 수 있습니다. 밀로즈는 REIT 자격을 갖출 예정이며, 처음에는 레나르를 위해 운영되고, 이후 다른 주택 건설업체로 확장할 계획입니다.
이번 분할은 레나르가 자산 경량 홈 제조업체로 변모하기 위한 전략을 추진하며, 2013년 19%부터 2024년 말까지 82%로 증가하는 과정을 계속하고 있습니다.
Lennar (NYSE: LEN) a complété la scission imposable de Millrose Properties (NYSE: MRP), distribuant environ 80% des actions de Millrose aux actionnaires de Lennar. Chaque actionnaire de Lennar a reçu une action ordinaire de classe A de Millrose pour chaque deux actions de Lennar détenues à la date du 21 janvier 2025.
Millrose a reçu 5,5 milliards de dollars d'actifs fonciers et 1,0 milliard de dollars en espèces de Lennar, avec une valeur comptable des capitaux propres d'environ 5,8 milliards de dollars. La société aura accès à une facilité de crédit renouvelable de 1,3 milliard de dollars, extensible à 2,0 milliards de dollars. Millrose prévoit de se qualifier en tant que REIT et opérera comme une plateforme d'achat d'options de sites résidentiels, servant initialement Lennar avec des projets d'expansion vers d'autres constructeur de maisons.
Cette scission fait avancer la stratégie de Lennar de devenir un fabricant de maisons à faible impact d'actifs, poursuivant sa transformation de 19% de sites contrôlés en 2013 à 82% d'ici la fin de 2024.
Lennar (NYSE: LEN) hat die steuerpflichtige Abspaltung von Millrose Properties (NYSE: MRP) abgeschlossen und etwa 80% der Millrose-Aktien an die Lennar-Aktionäre verteilt. Jeder Lennar-Aktionär erhielt eine Aktie der Millrose Klasse A für je zwei gehaltene Lennar-Aktien zum Stichtag 21. Januar 2025.
Millrose erhielt 5,5 Milliarden Dollar an Grundstücksvermögen und 1,0 Milliarden Dollar in bar von Lennar, mit einem Buchwert des Eigenkapitals von etwa 5,8 Milliarden Dollar. Das Unternehmen wird Zugang zu einer revolvierenden Kreditfazilität in Höhe von 1,3 Milliarden Dollar haben, die auf 2,0 Milliarden Dollar erweiterbar ist. Millrose beabsichtigt, als REIT zu qualifizieren, und wird als Plattform für den Kauf von Grundstücken für Wohnprojekte betrieben, wobei zunächst Lennar bedient und später auf andere Hausbauer expandiert werden soll.
Diese Abspaltung fördert die Strategie von Lennar, ein reiner, vermögensleichter Haushersteller zu werden, und setzt die Transformation von 19% kontrollierten Grundstücken im Jahr 2013 auf 82% bis Ende 2024 fort.
- Lennar transfers $5.5B in land assets and $1.0B cash to Millrose, reducing balance sheet exposure
- Access to $1.3B revolving credit facility (expandable to $2.0B) for Millrose
- Spin-off enables Lennar to focus on asset-light home production
- Potential for improved cash flow conversion and return on equity for Lennar
- Millrose's REIT status may provide tax advantages
- Lennar temporarily retains 20% of Millrose shares, creating potential market overhang
- Millrose currently depends on single customer (Lennar)
- Transaction costs and third-party fees impact initial book value
Insights
This transformative spin-off marks a watershed moment in homebuilding industry evolution, introducing an innovative capital recycling model that could reshape how builders manage land assets. The creation of Millrose with
The transaction's structure offers multiple strategic advantages:
- Lennar's transformation to an asset-light model significantly improves capital efficiency, potentially leading to higher ROE and consistent cash flow generation
- Millrose's REIT structure provides tax advantages and creates a new asset class for investors seeking exposure to residential land development with recurring income characteristics
- The
$1.3 billion revolving credit facility, expandable to$2 billion , provides substantial financial flexibility for future growth
The most compelling aspect is Millrose's potential to become an industry-wide solution. By evolving from a Lennar-specific platform to a broader industry utility, it could create a network effect that benefits both entities. Lennar's impressive transformation from
Key investment implications include enhanced balance sheet efficiency for Lennar, potential dividend income from Millrose's REIT structure and the creation of a new real estate sub-sector that could attract both growth and income-oriented investors. The retention of Kennedy Lewis as external manager, with
As of today, Millrose is an independent publicly traded company and will begin "regular-way" trading on the NYSE under the symbol "MRP."
As a result of the Distribution and the elections made by Lennar stockholders in connection with the Distribution, there are currently 120,980,401 shares of Millrose Class A common stock outstanding and 11,819,811 shares of Millrose Class B common stock outstanding distributed to Lennar stockholders (representing approximately
Millrose engages in land purchases, horizontal development and homesite option purchase arrangements for Lennar and potentially other homebuilders and developers. In connection with the Spin-Off, Lennar has contributed
The Spin-Off transaction accelerates Lennar's longstanding strategy of becoming a pure-play, asset-light, new home manufacturing company.
Stuart Miller, Executive Chairman and Co-Chief Executive Officer of Lennar, said, "With today's successful launch of Millrose Properties, we are very excited to advance Lennar's strategy of becoming a pure-play land-light manufacturer of homes. The spin-off of Millrose Properties is a significant milestone for Lennar and the industry, and we look forward to the Millrose team building a Lennar solution, as well as an entire industry solution, and creating an exceptional, land banking platform that will drive accretive yield growth as it expands."
Millrose is externally managed by Kennedy Lewis Land and Residential Advisors LLC ("Kennedy Lewis"), an affiliate of Kennedy Lewis Investment Management, an institutional alternative investment firm with over
Darren Richman, Chief Executive Officer and President of Millrose Properties, Inc., said, "We are excited to operate Millrose in its mission to facilitate the creation of high-quality residential communities by leveraging our financial expertise and industry relationships. Given our already existing robust backlog of industry assets, we expect to immediately begin the process of executing and closing accretive third-party deals."
Kennedy Lewis provides Millrose access to Kennedy Lewis' deep financial expertise, extensive operational platforms and strong homebuilder relationships. Immediately following the Spin-Off, Kennedy Lewis will leverage its full resources to deliver its already robust backlog of deals and to pursue accretive homesite option purchase arrangements with other third-party homebuilders and developers throughout the industry. Kennedy Lewis is currently actively evaluating these potential transactions for suitability for Millrose using its standard due diligence procedures and expects to have one or more of such transactions under contract by the time Millrose announces its financial results for the first quarter of 2025. Millrose expects to utilize its revolving credit facility to finance these transactions.
Vestra Advisors LLC, Citigroup, Goldman Sachs & Co. LLC and JPMorgan Chase & Co. are serving as financial advisors to Lennar. Cleary Gottlieb Steen & Hamilton LLP, Gibson, Dunn & Crutcher LLP and Goodwin Procter LLP are serving as legal counsel to Lennar. Akin Gump Strauss Hauer & Feld LLP and Venable LLP are serving as legal counsel to the standalone Millrose business. Davis Polk & Wardell LLP is serving as legal counsel for Lennar's financial advisors.
Introduction to Millrose Properties, Inc.
Millrose purchases and develops residential land and sells finished homesites back to Lennar and potentially other homebuilders by way of option contracts with predetermined costs and takedown schedules. While Lennar is currently Millrose's only customer, Millrose anticipates that its "first of its kind" public vehicle will be attractive to other homebuilders seeking to implement an asset-light strategy and believes that becoming a capital source for other homebuilders will provide for accretive growth to the Millrose platform.
Millrose's assets perform more like work-in-process inventory versus traditional land bank assets, with limited entitlement and development risk, and scheduled takedowns that allow homebuilders to purchase finished homesites just in time for home construction. As fully developed homesites are acquired, capital is recycled into future land acquisitions for Lennar and potentially other homebuilders, providing each customer with uninterrupted access to capital. Millrose expects to generate recurring income from monthly option payments pursuant to purchase option contracts with Lennar (the "Lennar Agreements") and potentially other homebuilders.
Lennar's Acceleration of its Land-Light Strategy
Since 2013, Lennar has been pursuing an asset-light, land-light strategy to increase strategic flexibility, improve production efficiencies and enhance shareholder value. Over the years, Lennar has undergone a significant transformation in its land strategy by utilizing off-balance sheet vehicles to acquire homesites. It has developed and refined its Homesite Option Purchase Platform (the "HOPP'R"), a comprehensive suite of systems and processes used to operate and manage the large-scale acquisition, financing, and development of land assets, as it migrates towards a "just in time" delivery model of fully developed homesites. This strategic shift has allowed Lennar to successfully reduce its supply of owned homesites and significantly increase the percentage of controlled homesites from
Key Transaction Highlights:
- Creates a new, long-lasting, public capital recycling, finished homesite program that reduces on-balance sheet land and development at a lower cost than existing land banks in the private markets.
- Lennar will now focus exclusively on "just-in-time", asset-light home production.
- The Spin-Off enhances Lennar's ability over time to reallocate cash flow from on-balance sheet land acquisition and development spend towards capital allocation and shareholder distributions.
- Lennar's return profile is expected to be significantly improved by increasing its cash flow conversion and return on equity.
- A first of its kind transaction, the creation of a recycled land capital vehicle as a separate public company reinforces Lennar's position as a leading innovator in the housing ecosystem.
About Lennar
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the
About Millrose
Millrose is an independent, publicly traded company that engages, through its subsidiaries, in land purchases, horizontal development and homesite option purchase arrangements, for Lennar, certain entities with which Lennar has a business relationship or in which Lennar has an ownership interest, and potentially other homebuilders and developers.
Forward-looking Statements
This press release contains forward-looking statements, including, in particular, statements about Lennar's and Millrose's businesses, plans, strategies and objectives following the Spin-Off, including the value of Lennar's land assets contributed to Millrose, Millrose's qualification as a REIT, the anticipated benefits of the Spin-Off and Lennar's expected return profile, the Millrose Class A common stock temporarily retained by Lennar and the ability of Millrose to sign and close on potential transactions with third-party homebuilders and developers in the timeline indicated. You can generally identify forward-looking statements by our use of forward-looking terminology such as "may," "can," "shall," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue" or other similar words or the negatives thereof. Assumptions relating to these statements involve judgments with respect to, among other things, competitive and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and many of which are beyond our control. There can be no assurance that these forward-looking statements will prove to be accurate, and our actual results, performance and achievements may be materially different from that expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans, which we consider to be reasonable, will be achieved.
Contact:
Ian Frazer
Investor Relations
Lennar Corporation
(305) 485-4129
SOURCE Lennar Corporation
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