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Lennar Subsidiary Makes SEC Filing Regarding Planned Spin-Off

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Lennar (NYSE: LEN) announced that its newly formed subsidiary, Millrose Properties, has filed an SEC registration statement for a planned spin-off. The transaction will involve Lennar contributing land and cash to Millrose, followed by distributing Millrose's stock to Lennar's stockholders. The spin-off remains subject to final approval from Lennar's Board of Directors and other customary conditions. The preliminary prospectus containing detailed information about the spin-off is available through the SEC's EDGAR system and Millrose's website.

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Positive

  • Creation of potential shareholder value through spin-off distribution
  • Strategic separation of land assets into new entity
  • Shareholders to receive new stock allocation through distribution

Negative

  • Spin-off still subject to board approval and conditions
  • Potential uncertainty regarding final structure and terms of spin-off
  • Possible dilution of Lennar's land asset base post-spin-off

News Market Reaction – LEN

-3.66%
1 alert
-3.66% News Effect

On the day this news was published, LEN declined 3.66%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MIAMI, Dec. 18, 2024 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B) ("Lennar"), one of the nation's leading homebuilders, announced that its recently formed subsidiary, Millrose Properties, Inc. ("Millrose"), has filed with the Securities and Exchange Commission a registration statement under the Securities Act of 1933 on Form S-11 relating to a planned spin-off consisting of a contribution by Lennar to Millrose of land and cash and a distribution of Millrose's stock to Lennar's stockholders (the "Spin-Off"). The planned Spin-Off is subject to final approval from the Lennar Board of Directors and other customary conditions.

Detailed information about Millrose and the planned Spin-Off is contained in the preliminary prospectus contained in the registration statement which has not been declared effective. Future updates to the Form S-11 will be filed with the SEC and be available through the SEC's EDGAR system at www.SEC.gov under Millrose Properties, Inc. The registration statement and any future updates can also be obtained through Millrose's website at www.millroseproperties.com. Millrose's website has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release. Alternatively, Millrose will arrange to send you, free of charge, the registration statement if you request it by contacting Millrose Properties, Inc. at 600 Brickell Avenue, Suite 1400, Miami, Florida 33131, or at info@millroseproperties.com.

About Millrose

After the planned Spin-Off, Millrose will become an independent, publicly traded company that will engage, 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.

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. LENdrives Lennar's technology, innovation and strategic investments. 

*****

A registration statement relating to the Millrose securities has been filed with the Securities and Exchange Commission but has not yet become effective. Those securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Cautionary statement regarding forward-looking statements

This press release contains forward-looking statements, including, in particular, statements about the successful completion of the Spin-Off and Millrose's business, plans, strategies and objectives following the Spin-Off. 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, future business decisions and Millrose's relationships with customers, 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

Cision View original content:https://www.prnewswire.com/news-releases/lennar-subsidiary-makes-sec-filing-regarding-planned-spin-off-302335054.html

SOURCE Lennar Corporation

FAQ

What assets will Lennar transfer to Millrose Properties in the spin-off?

According to the announcement, Lennar will contribute land and cash to Millrose Properties as part of the spin-off transaction.

How will Lennar (LEN) shareholders benefit from the Millrose Properties spin-off?

Lennar shareholders will receive shares of Millrose Properties stock through the distribution of Millrose's stock to existing Lennar stockholders.

What regulatory approvals are needed for the Lennar-Millrose spin-off?

The spin-off requires SEC review of the Form S-11 registration statement and final approval from Lennar's Board of Directors, along with other customary conditions.

Where can investors find detailed information about the Lennar (LEN) spin-off of Millrose?

Detailed information is available in the preliminary prospectus filed with the SEC through EDGAR at www.SEC.gov and on Millrose's website at www.millroseproperties.com.