Millrose Properties Reports $600.5M Revenue and $379.9M Net Income in First Year as Public Company

Millrose Properties, Inc. has reported significant financial performance in its first year as an independent publicly traded company following its spin-off from Lennar Corporation on February 7, 2025. For the fiscal year ending December 31, 2025, Millrose generated total revenues of $600.5 million, primarily from option fee revenues of $571 million and development loan income of $29.5 million. This marks a substantial increase from the previous fiscal year, where the predecessor business reported no revenues, as it was not subject to purchase option contracts with homebuilders. The company’s net income for the year was $379.9 million, a notable recovery from a net loss of $246.2 million in 2024.

The company has made strategic moves to enhance its operational capabilities, including the acquisition of approximately 25,000 homesites through the purchase of RCH Holdings, Inc. for $859 million in cash. Additionally, Millrose entered into a commitment with New Home Company to provide land banking capital of up to $700 million, which resulted in the acquisition of 4,186 homesites. As of December 31, 2025, Millrose's real estate portfolio consisted of 142,139 homesites across 933 properties in 30 states, with an estimated future takedown value of $16.1 billion.

Operationally, Millrose has focused on expanding its counterparty base beyond Lennar, which accounted for 88% of its total option fee revenues in 2025. The company has established relationships with 15 counterparties and has pooled 96% of its portfolio under various agreements to mitigate risks associated with individual property performance. The company’s management, Kennedy Lewis Land and Residential Advisors LLC, has been instrumental in leveraging technology to streamline operations and enhance due diligence processes.

Looking ahead, Millrose intends to elect REIT status for U.S. federal income tax purposes, which will require it to distribute at least 90% of its taxable income to shareholders. The company has a conservative leverage profile, with a debt-to-equity ratio limit of 1:1, and it plans to maintain a strong capital structure through ongoing debt offerings. However, the company faces risks related to market conditions, including potential declines in home prices and interest rate fluctuations, which could impact its ability to generate cash flow and meet its distribution requirements. Millrose's management remains optimistic about its growth prospects, emphasizing its unique position in the land banking sector and its commitment to providing reliable capital solutions for homebuilders.