Lennar’s Millrose was built to hold land. Instead, it allegedly bought homes, rented them at loss

Shareholders have sued Lennar spinoff Millrose Properties, alleging they were misled, in a complaint that hinges heavily on reporting by a news outlet whose investment affiliate was short on Millrose and Lennar stock, positioning it to benefit from declines in their share prices. Lennar, the second largest homebuilder nationwide and a Miami homegrown company, has long relied on land banks to carry development sites off its balance sheet and have other entities hold the properties until Lennar is ready to build. The strategy, which is common among homebuilders, frees up their cash to keep building.  In a nod to this […]

This article originally appeared on The Real Deal. Click here to read the full story.