Jade Rahmani's questions to LENNAR CORP /NEW/ (LEN) leadership • Q3 2025
Question
Jade Rahmani asked for the quantity or percentage of year-to-date deliveries that came from Milrose. He also inquired about the gross margin outlook beyond Q4, specifically whether the remaining 75% of deliveries from Milrose would reflect the interest cost benefit, implying a potential incremental headwind as the $560 million annual interest cost is not yet fully reflected.
Answer
CFO Diane Bessette stated that year-to-date deliveries from Milrose were 'about 25% in that zone.' Executive Chairman & Co-CEO Stuart Miller and Co-CEO & President Jon Jaffe discussed the benefits of Milrose and broader land banking relationships for cost structure and efficiency, emphasizing a manufacturing approach and ecosystem. Miller clarified that Lennar's strategy involves a range of participants providing low-cost capital, not just Milrose, to achieve the best cost structure and affordability.