Millrose Properties Reports $39.8M Net Income in Q1 2025 After Spin-Off from Lennar

Millrose Properties, Inc. reported a significant financial turnaround in its first quarter of 2025, following its spin-off from Lennar Corporation on February 7, 2025. The company generated $82.7 million in option fee revenues and other related income for the three months ended March 31, 2025, compared to no revenue in the same period last year. This revenue was primarily derived from option payments from Lennar, which accounted for over 99% of total revenues. Millrose's net income for the quarter was $39.8 million, a stark contrast to a net loss of $56.9 million reported in the prior year, reflecting a post-spin net income of $64.8 million after adjusting for pre-spin expenses.

The company’s total assets surged to $7.15 billion as of March 31, 2025, up from $5.47 billion at the end of 2024. This increase was largely attributed to the acquisition of approximately 87,000 homesites and $1 billion in cash from Lennar during the spin-off. Millrose also completed the acquisition of Rausch Coleman Companies, LLC, adding approximately 25,000 homesites for $859 million in cash. The company’s total inventories reached $7 billion, with homesite inventory and related assets accounting for $6.99 billion.

Operationally, Millrose has expanded its geographic footprint, with properties located across 29 states. As of March 31, 2025, the company held 876 properties, with an estimated total takedown price of $10.9 billion and projected development costs of $4.6 billion. The company’s management fee expense for the quarter was $12.1 million, reflecting the costs associated with its management agreement with Kennedy Lewis Land and Residential Advisors LLC, which oversees day-to-day operations.

Looking ahead, Millrose intends to maintain its status as a Real Estate Investment Trust (REIT) and plans to distribute at least 90% of its taxable income to shareholders. The company has also established a $1.335 billion revolving credit facility to support its operations and future growth initiatives. As of March 31, 2025, Millrose had $89.5 million in cash and approximately $1 billion in available capacity under this facility, positioning it well for upcoming investments and operational needs. The company remains optimistic about its growth trajectory, driven by its strategic land acquisitions and partnerships.