Lennar: The Misstep Is Temporary, the Operating Machine Is Not
Lennar cut build times to 116 days and adopted an asset-light land model, while gross margin fell to 15.8% from 27.5% as land costs rose.
Sector
Real Estate
Everything our editor has picked under this sector, best first.
239 stories
Lennar, Part One: The Story
Lennar grew from a Miami builder into one of America’s two largest homebuilders, controlling land largely through options and land banks…
Lennar, Part Two: The Deep Dive
Lennar’s second audio program examines the homebuilder’s business for professional investors and housing analysts.
George Noble on X
@MMTLP4ME88 @ericjackson @rabois @mikealfred @APompliano @philrosenn @dayetweets @nejatian Am still short as $OPEN is valued at over 2x book.
George Noble on X
The $open army has been obliterated. @ericjackson @rabois @mikealfred @APompliano all belong in jail. And to all the financially illiterate haters who gave me crap for being short $OPEN from $8, have a nice day. @philrosenn @dayetweets https://t.co/aN2KlgB4Tc
KEDM.com on X
Palm Valley Capital Fund bought even more of their largest position, Rayonier $RYN, during the quarter. The Fund estimated that the timberland REIT is trading at a meaningful discount to its estimated value, driven mainly by weak lumber prices. Shares continue to derate even as the company generates strong free cash flow. It now has a 5.6% dividend yield.
H&R REIT, an opportunity in a corrupt process
H&R REIT's proposed GO Residential transaction faces investor opposition over rejected $12.50 cash bids, insider benefits and tax…
A Capital on X
Two event-driven levered equities I’m thinking about this weekend: $XRX and $SVC. $XRX seems simple on paper. Monetize XFS, delever and unlock substantial equity value. But if it’s that obvious, why hasn’t Icahn’s guy done it in eight years? The recent TPG IP monetization suggests they’re willing to get creative, so what’s preventing an XFS transaction? $SVC is potentially more interesting. If the board accepts TKO’s $2bn hotel portfolio offer, you’re creating the remaining net lease portfolio at a very attractive valuation with significant equity torque from deleveraging. My biggest question is whether TKO actually has the financing commitments to close… Thoughts welcome.
Hunterbrook on X
UPDATE: Berkshire Hathaway appears to have paused $LEN buying. It’s the first two-trading-day gap in its disclosed buying since it began building its stake on Sept. 17. https://t.co/bDtucKUWSA
Myles on X
@marketplunger1 Probably $ASR or $SPGI. I think reits like $CPT would be a decent shout too. Wild how many of the answers are stock promotions and pumps.
KEDM.com on X
American Assets Trust’s $AAT Chairman Rady continues to buy shares, now already owning 38% of s/o. The 13D also mentions that he may ‘discuss or encourage extraordinary transactions - including mergers, take‑private deals, asset sales, recapitalizations or board/management changes.’
The Story Millrose Told Wall Street About Lennar Purchases Doesn’t Match The Evidence
Millrose told Goldman its Lennar purchases had rent-to-own tenants lined up, but most analyzed homes were advertised for rent and showed…
Farmer on X
@ptuomov Are you talking about the NAV or what the vol would be if it were a publicly traded ticker? Things like $FPI and and $LAND could be a good guide if the latter.
Hunterbrook on X
Based on Hunterbrook Media's reporting, at the time of publication Hunterbrook Capital is short $MRP, short $LEN, and long a basket of comparable securities. Positions may change at any time. This article is not investment advice or any recommendation. See full disclosures below.
Hunterbrook on X
Millrose management told Goldman Sachs its Lennar home purchases were a rent-to-own pilot, with a renter often lined up before $MRP buys. We found approximately 95% of more than 1,000 home addresses bought from $LEN were actually listed for rent to the public. https://t.co/szKAaqaBoN
Ex-Goldman MD: "Credit Markets Move in Step Functions"
Geoffrey Williams explains CMBS underwriting, post-GFC securitized-credit risk transfer and why credit markets reprice in step functions.
A Capital on X
@thecontracap What about FinTwit favorite $SNDA?
Lee Roach on X
Geo Group $GEO down 8% on a massive facility sale seems kind of crazy.
A Capital on X
$BMR
SG on X
$FRVO price drops from ~$31 on Jun 26 to ~$13.50, and now they publish a short report? https://t.co/57Dy0iV2lE
RLJ Lodging Trust: Opportunity To Own A Quality Hotel Portfolio At Discount While Earning Dividends
RLJ Lodging Trust trades below book value, with positive FY26 FFO guidance and property conversions offset by elevated leverage risk.
Albert Anthony 2 clickskab60 on X
Would've been too easy, so I didn't buy. I prefer complicated roll-ups with excessive debt. Just hitching the wagon to a pair of founders who've compounded >17% for decades - below TBV and obvious catalyst NTM - would've been too easy. $LEGH https://t.co/Mg34NbtYsw https://t.co/Pirp5B179e
An Activist Shows Up at $4.27
Erez Asset Management bought 5.8% of ESRT at $4.27 and urged a potential strategic review of some or all assets.
An Activist Shows Up at $4.27
Erez Asset Management built a 5.8% ESRT stake in five weeks and has discussed a potential strategic review with the company.
