Lennar Replenishes Stock Repurchase Authorization, Up to $1.0 Billion

Rhea-AI Summary

Lennar Corporation (NYSE: LEN, LEN.B) announced a new stock repurchase program, authorizing the buyback of up to $1 billion worth of shares or 25 million shares. This program replaces the previous authorization from January 2019, during which 14 million shares were repurchased for $781 million. The new buyback has no expiration date, allowing management flexibility to repurchase shares as deemed appropriate. This move aims to enhance shareholder value and reflects the company's confidence in its future performance.

Positive

• Authorization for a $1 billion stock buyback program indicates strong confidence in future performance.
• Previous buyback of 14 million shares for $781 million highlights effective use of capital.

Negative

• None.

MIAMI, Jan. 14, 2021 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, announced that its Board of Directors authorized the Company to repurchase from time to time up to the lesser of $1 billion in value, or 25,000,000 in shares, of the Company's outstanding Class A or Class B common stock. The repurchase authorization has no expiration date. The purpose of the authorization is to enable the Company to purchase shares from time to time when its officers deem it appropriate for the Company to do so. Under a prior stock repurchase authorization, which was approved by the Board in January 2019 and was replaced by the current one, the Company repurchased 14 million shares of its Class A and Class B common stock for a total of $781 million.

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 United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LEN^X drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.

Forward-Looking Statements

Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the stock repurchase authorization. These forward-looking statements are subject to risks, uncertainties and assumptions, including the risk that no shares are repurchased. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements. They include the risks detailed in Lennar's filings with the SEC, including the "Risk Factors" section of Lennar's Annual Report on Form 10-K for the fiscal year ended November 30, 2019. It is not possible for management to predict all the possible risks that could affect Lennar or to assess the impact of all possible risks on Lennar's business.

 

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SOURCE Lennar Corporation

FAQ

What is the purpose of Lennar's $1 billion stock buyback?

The buyback aims to enhance shareholder value by repurchasing outstanding shares when deemed appropriate.

When was the previous stock repurchase program approved for Lennar?

The previous stock repurchase program was approved in January 2019.

How many shares can Lennar repurchase under the new authorization?

Lennar can repurchase up to 25 million shares under the new authorization.

What was the total amount spent on the previous buyback program?

Lennar spent $781 million on the previous buyback program.

Is there an expiration date for Lennar's new stock repurchase authorization?

No, the new stock repurchase authorization has no expiration date.