2. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders as of Q3: 68
Greenhaven Associates’ Equity Stake: $1.25 Billion
Headquartered in Miami-Dade County, Florida, Lennar Corporation (NYSE:LEN) is the second-largest home construction company in the United States as of 2023. Originally founded as F&R Builders in 1954 by Leonard Miller and Arnold Rosen, the company was later renamed Lennar in 1971. It became a public company listed on the New York Stock Exchange in 1972 and has since expanded significantly. Lennar Corporation (NYSE:LEN) presently operates in 26 states and 75 markets nationwide and has diversified its portfolio beyond home construction by investing in luxury developments, multifamily and single-family rental properties, mortgage lending through Lennar Mortgage, and property technology via LenX.
Over the decades since 1972, Lennar Corporation (NYSE:LEN) has grown through multiple strategic acquisitions, including US Home in 2000 wherein it doubled in size, WCI Communities in 2017, and a prominent merger with CalAtlantic Homes in 2018, which made it the largest homebuilder in the U.S. for a brief period. The company has built over one million homes since its inception and continues to be a dominant force in the housing market, leveraging innovation and large-scale operations to maintain its industry leadership.
On February 7, 2025, Lennar Corporation (NYSE:LEN) completed the planned taxable spin-off of Millrose Properties, Inc. It subsequently distributed roughly 80% of Millrose’s shares to its shareholders. This strategic move is planned to allow both companies to operate with greater flexibility and is expected to create long-term value for investors while positioning Lennar and Millrose for continued success in their respective markets.
For the quarter ended November 2024, Lennar Corporation (NYSE:LEN) posted revenues of $9.95 billion which is 9.31% down from the revenues of $10.97 billion in the same quarter of the previous year. The revenue fell 1.66% short of the consensus estimate of $10.11 billion for the quarter. The company reported quarterly earnings of $4.06 per share in Q4, $0.76 less than the EPS for the quarter a year ago. On January 14, 2025, the company published its earnings call transcript wherein it announced that its Board of Directors had declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock payable on February 12, 2025, to holders of record at the close of business on January 29, 2025.
Greenhaven Associates held roughly 9.16 million shares of Lennar Corporation (NYSE:LEN) as of Q4 2024, which represents 18.48% of its portfolio. The company continues to demonstrate resilience and strategic growth, as evidenced by its successful spin-off of Millrose Properties, which is expected to enhance long-term value for investors. Despite a slight decline in revenue and earnings, the company maintains strong financial health, supported by consistent dividend payments and a commitment to shareholder returns, positioning it for sustained success in the homebuilding industry.
