Lennar Corporation (LEN) shares fell as much as 5% following a Hunterbrook research report. The firm alleges Lennar is selling homes to its own 2025 spinoff, Millrose Properties.
Hunterbrook identified over 700 home sales between the entities during the last month. These transactions are valued at approximately $200 million.
The report suggests Lennar may be using the subsidiary to inflate home-delivery figures. Millrose currently derives most of its revenue from Lennar.
A recent amendment allows Millrose to purchase and rent completed homes. This marks a shift from its original purpose of managing land assets.