NVR - Lennar: A Transformational Opportunity Play

• LEN surpassed DHI in 2018 following its acquisition of the 4th largest homebuilder CalAtlantic. However, the company has not reached its potential yet.
• LEN has not yet fully utilized the lighter land strategy, currently controlling only 50% of lands through option contracts signaling large room for improvement for future underlying fundamentals.
• Substantial operational efficiency is expected to be unlocked following the spin-off plan to divest the ancillary and multifamily segments, including LEN-X Portfolio.
• LEN has a favorable risk/reward ratio, estimated to compensate well-patient investors as the company goes through its transformation plan. Inventory management remains the catalyst for the company's valuation, profitability, and risk profile.

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