MRP

Millrose Properties is a brand-new land-banking REIT spun off from Lennar on February 7, 2025. Its model is asset-light for homebuilders but capital-intensive for Millrose: it purchases and develops residential land, then sells finished homesites back to builders via option contracts with predetermined costs and takedown schedules, earning recurring option fees and recycling capital into new acquisitions. In its first reporting year, FY2025 revenue was $600M and net income was $380M (diluted EPS $2.44), with eye-catching operating cash flow of $3.67B reflecting the capital recycling inherent to the model. The company intends to qualify as a REIT from the 2025 tax year and paid $299M in dividends.

The balance sheet was built rapidly through transactions. At spin-off Millrose received ~$5.5B of land (≈87,000 homesites) and ~$1.0B cash from Lennar, then acquired ~25,000 more homesites via the ~$859M RCH/Rausch deal and funded $494.5M of land-banking for New Home's Landsea acquisition. It terms out its financing with $1.25B of 2030 senior notes. Total assets reached $9.26B and liabilities jumped to $3.40B (off a near-zero base), but leverage remains conservative at 0.58x liabilities/equity against $5.86B equity. Importantly, in November 2025 Lennar completed an Exchange Offer leaving it with only a de minimis stake — Millrose is now a genuinely independent company rather than a captive Lennar subsidiary.