LEN / MRP ~−6%: Hunterbrook short report says Millrose bought 700+ Lennar homes — related-party demand question

[LondonNewsTrader]

Lennar and its 2025 land-bank spinoff Millrose Properties are both down roughly 6% today after a Hunterbrook Media short report published Friday (Hunterbrook Capital discloses shorts in both, plus a long basket of comparables).

The core claims, paraphrased:
- County deed records show Millrose (via a subsidiary) bought 700+ finished Lennar homes across at least 51 counties in 15 states — an estimated ~$200M in about a month.
- At least 356 of those were recorded in the final week of Lennar's fiscal Q3. Lennar cleared the low end of its delivery guide by ~340 homes, so Hunterbrook argues those sales were the difference between hitting and missing.
- Millrose's original filings said it wouldn't have tenants; the agreements were amended on Aug 27 to allow buying completed homes as rentals. Hunterbrook says the homes rent at ~5% net yield vs Millrose's ~6.5–6.75% borrowing cost.

These are allegations, not findings, and as of my writing I haven't seen a detailed point-by-point rebuttal. That rebuttal (or silence) is usually what decides whether a short-report gap keeps going or gets bought.

Scalper read: LEN is big enough that the move can bleed into XHB/ITB via basket flows, and with the 10y around 5.3% the group doesn't have a rates tailwind. MRP is the thinner name — watch spreads and borrow before getting cute on either side.

Sources (public): Hunterbrook Media report, 2 Oct; Newsquawk; CNBC midday movers, Mon 5 Oct.

Do you trade short-report days at all, or wait for the company response? Anyone seeing this spill into DHI/PHM?