Lennar launches exchange offer of Millrose stock for Lennar stock

MIAMI - Lennar Corporation (NYSE:LEN and LEN.B), a prominent player in the Household Durables industry with a market capitalization of nearly $30 billion, announced Friday an exchange offer for its approximately 20% stake in Millrose Properties, Inc. (NYSE:MRP), allowing stockholders to trade Lennar Class A shares for Millrose Class A shares at a 6% discount. The announcement comes as Lennar’s stock has experienced a 9.4% decline over the past week.According to InvestingPro analysis, Lennar appears undervalued based on its Fair Value calculations, presenting a potential opportunity for investors looking at this transaction.

The exchange offer, which begins immediately and expires November 7, 2025, follows Lennar’s February 2025 spin-off of Millrose, when it distributed approximately 80% of Millrose’s stock to Lennar stockholders. The company maintains a strong financial position, with InvestingPro data showing more cash than debt on its balance sheet and a healthy current ratio of 12.7.

Under the terms of the offer, the exchange ratio will be determined based on the average volume-weighted prices of both companies’ shares during the three trading days ending November 5, 2025, subject to an upper limit of 4.1367 Millrose shares per Lennar share.

Lennar currently owns 33,298,764 shares of Millrose Class A common stock, representing approximately 20% of outstanding Millrose shares. The company stated that if the exchange offer is not fully subscribed, it intends to dispose of remaining Millrose shares through subsequent transactions.

The completion of the exchange offer faces potential delays due to the ongoing U.S. federal government shutdown, as the SEC must declare the registration statement effective before the offer can be completed. Lennar indicated it will announce by October 31, 2025, whether it will extend or terminate the offer if the shutdown continues. Despite recent market volatility, Lennar maintains strong fundamentals with a P/E ratio of 11.6 and has consistently demonstrated its commitment to shareholder returns, maintaining dividend payments for 48 consecutive years.For deeper insights into Lennar’s financial health and detailed analysis, investors can access comprehensive Pro Research Reports available on InvestingPro, which offers exclusive metrics and expert analysis for over 1,400 US stocks.

The exchange offer is voluntary for Lennar Class A stockholders, with no action required for those who choose not to participate. Holders of Lennar Class B common stock are not eligible to participate.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as dealer managers for the exchange offer, while Vestra Advisors, LLC is acting as exclusive financial advisor to Millrose.

The information in this article is based on a press release statement from Lennar Corporation.

In other recent news, Lennar Corporation announced a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock, payable on October 27, 2025. UBS raised its price target for Lennar to $161, maintaining a Buy rating, following the company’s fiscal third-quarter 2025 results. Meanwhile, JPMorgan lowered its price target to $92, citing reduced delivery expectations after Lennar delivered 21,400 homes, missing its guidance range. RBC Capital also adjusted its price target to $106, while maintaining a Sector Perform rating, due to weaker absorption rates and deliveries. Keefe, Bruyette & Woods reiterated a Market Perform rating with a $125 price target, reducing its earnings estimates for 2025 and 2026 due to lower expected deliveries and income projections. These developments reflect a range of analyst perspectives on Lennar’s future performance amid varying market conditions.

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