Millrose Properties (MRP) delivers $428M AFFO and fully covers dividend
Rhea-AI Filing Summary
Millrose Properties, Inc. reported strong fourth quarter and full year 2025 results driven by its homesite option platform. For 2025, total revenues were $600.5 million, with net income attributable to common shareholders of $404.8 million, or $2.44 per share, and AFFO of $427.9 million, or $2.58 per share.
In the fourth quarter, net income was $122.2 million, or $0.74 per share, and AFFO was $125.6 million, or $0.76 per share, slightly above its year-end quarterly AFFO run rate guidance. The company declared a quarterly dividend of $0.75 per share and states it distributes 100% of AFFO to shareholders.
Millrose ended 2025 with approximately 142,000 homesites across 933 communities in 30 states, total assets of about $9.3 billion, total debt of $2.1 billion and a debt‑to‑capitalization ratio of 26%. The portfolio’s weighted average yield was 9.2%, supported by $8.47 billion of invested capital and a growing pipeline beyond its Lennar Master Program Agreement.
Positive
- Strong first full year as a standalone REIT: 2025 revenues of $600.5 million, net income of $404.8 million ($2.44 per share), and AFFO of $427.9 million ($2.58 per share) demonstrate solid earnings power from the homesite option platform.
- Attractive yields with disciplined balance sheet: portfolio weighted average yield of 9.2% and invested capital of $8.47 billion, alongside debt‑to‑capitalization of 26% and about $1.3 billion in liquidity, support growth without heavy leverage.
- Dividend fully covered by AFFO with growth outlook: quarterly dividend of $0.75 per share and a stated policy to distribute 100% of AFFO, combined with plans for up to $2 billion of net new 2026 deployment implying roughly 10% AFFO per share growth.
Negative
- None.
Insights
Millrose posts robust first full-year results with high yields, full AFFO payout, and moderate leverage.
Millrose delivered 2025 revenues of
The platform generated a portfolio weighted average yield of
Leverage appears conservative, with total debt of
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 26, 2026, Millrose Properties, Inc. (the "Company") issued a press release announcing its results for the quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed 'filed' for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.
Item 7.01 Regulation FD Disclosure.
On February 26, 2026, the Company posted the Fourth Quarter 2025 and Full Year 2025 Earnings Presentation (the "Presentation") to the "Investor Relations" section of its website at www.millroseproperties.com. A copy of the Presentation is furnished as Exhibit 99.2 hereto and is incorporated herein by reference.
The information in this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed "filed" for the purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.
The Company announces material information to the public through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, and on the Company's investor relations website (https://ir.millroseproperties.com) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Description of Exhibit |
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99.1 |
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Press Release issued February 26, 2026 |
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99.2 |
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Fourth Quarter 2025 and Full Year 2025 Earnings Presentation |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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MILLROSE PROPERTIES, INC. |
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Date: February 26, 2026 |
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By: |
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/s/ Garett Rosenblum |
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Name: |
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Garett Rosenblum |
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Title: |
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Chief Financial Officer and Treasurer |
Exhibit 99.1
Millrose Properties Reports Strong Fourth Quarter and Full Year 2025 Financial Results
Full Year 2025 Net Income of $2.44 Per Share; Fourth Quarter Net Income of $0.74 Per Share
Fourth Quarter AFFO of $0.76 Per Share; Year-End Quarterly AFFO Run Rate of $0.77 Per Share, Ahead of Guidance
Total Homesites Under Option Contracts and Other Related Assets of $9.2 Billion; Invested Capital Outside of Lennar Master Program Agreement Reached $2.4 Billion, Surpassing $2.2 Billion Stretch Target, with Zero Option Terminations Across the Portfolio
Full-Year 2026 Pipeline Supports Up to $2 Billion in Net New Capital Deployment
MIAMI – February 26, 2026 – Millrose Properties, Inc. (NYSE: MRP, "Millrose" or the "Company"), the Homesite Option Purchase Platform for residential homebuilders, today announced financial results for the fourth quarter and full year ended December 31, 2025.
"2025 was a defining year for Millrose," said Darren Richman, Chief Executive Officer and President. "Despite a cautious homebuilding environment, our platform gained strong industry traction – exceeding our expectations. We surpassed our stretch investment target, grew to 15 builder counterparties, and navigated affordability headwinds and macro uncertainty without a single option termination. Recurring contractual income grew, capital recycled efficiently, and our platform expanded accretively – delivering above our original plan."
Mr. Richman continued, "We enter 2026 with a more constructive housing backdrop and a strong pipeline. We expect to grow invested capital outside of the Lennar Master Program Agreement by an additional $2 billion, further diversifying beyond our foundational Lennar relationship at accretive yields."
Financial Highlights
Millrose generates recurring cash flow through contractual monthly option payments and continuous redeployment of homesite sale proceeds.
Fourth Quarter 2025
Full Year 2025
The total portfolio weighted average annualized yield was 9.2% as of December 31, 2025 – a 70 basis point increase since inception in February 2025. Yield expansion was driven by the Company's diversification strategy, with new homesite investments outside the Lennar Master Program Agreement generating yields of approximately 11.0%.
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Dividend
On December 22, 2025, Millrose declared a quarterly dividend of $124.5 million, or $0.75 per share of Class A and Class B common stock, paid January 15, 2026 to shareholders of record as of January 5, 2026. Millrose distributes 100% of its AFFO back to shareholders.
2026 Outlook
The Company expects to deploy approximately $1 billion of additional invested capital by mid-2026 using existing debt capacity, targeting a 2Q exit quarterly AFFO run rate of $0.78–$0.80 per share. Based on current pipeline depth, total net new capital deployment of up to $2 billion is expected for full year 2026 – implying approximately 10% year-over-year AFFO per share growth. The Company remains committed to a maximum debt-to-capital target of 33% and will not issue equity below book value.
Portfolio Highlights
Lennar Master Program Agreement: With $6.5 billion of homesite inventory and a $6.1 billion Invested Capital balance as of December 31, 2025, the Lennar relationship remains the stable foundation of the Company's recurring cash flow. In 2025, the Company received $3.0 billion in net cash proceeds from Lennar takedowns and redeployed $2.9 billion into new land acquisitions and development funding. In the fourth quarter, the Company received $851 million in net takedown proceeds and redeployed $651 million with Lennar.
Other Agreements: Invested Capital outside the Lennar Master Program Agreement finished the year at approximately $2.4 billion, surpassing the $2.2 billion stretch target. Millrose funded $2.6 billion in new land acquisition and development under other agreements in 2025 at a weighted average yield of 11.0%. In the fourth quarter alone, the Company deployed $689 million with non-Lennar counterparties, increasing Invested Capital by $550 million versus the third quarter. The Company ended the year with 15 distinct counterparties, 9 of which rank among the top 25 national homebuilders.
Portfolio Composition: Millrose ended 2025 with approximately 142,000 homesites across 933 communities in 30 states, up from approximately 139,000 homesites and 880 communities at the end of the third quarter. During the year, the Company delivered over 31,000 homesites to builders – with an average home selling price approximately 20% below the national average for newly built single-family homes – with zero option terminations across the entire portfolio.
Liquidity & Capitalization
As of December 31, 2025, Millrose reported total assets of approximately $9.3 billion and total liquidity of $1.3 billion, including cash and availability under its $1.3 billion revolving credit facility.
Total debt was $2.1 billion, with a debt-to-capitalization ratio of 26% – well below the Company's 33% maximum target – leaving approximately $900 million of additional debt capacity to fund 2026 priorities. Following the completion of $2.0 billion in long-term senior notes offerings during the year, the Company enters 2026 with a strengthened balance sheet, no near-term maturities, and ample financial flexibility to support its growing investment pipeline.
Conference Call and Webcast
Millrose will host a conference call today, February 26, at 10:00 AM Eastern Time to discuss fourth quarter and full year results, recent developments, and outlook. The webcast and earnings materials are available at ir.millroseproperties.com. A replay will be available shortly after the broadcast.
About Millrose Properties, Inc.
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Millrose (NYSE: MRP) is the premier Homesite Option Purchase Platform for residential homebuilders, specializing in the acquisition and horizontal development of land to provide a predictable, just-in-time supply of finished homesites – the most scarce and mission-critical resource in homebuilding. Unlike traditional land bankers, Millrose uses a proprietary technology platform with real-time data analytics to drive acquisition decisions, with every transaction subject to rigorous independent due diligence. By enabling an asset-light model, Millrose gives its diverse roster of homebuilder partners the strategic flexibility to maintain production volumes and optimize balance sheet efficiency across all market environments. For more information, visit millroseproperties.com.
Forward-Looking Statements
Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1934, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about Millrose’s plans, strategies and objectives, future earnings, expected transactions and guidance, as well as statements about Millrose’s business (including MPH Parent, LLC (“MPH Parent”), Millrose Properties Holdings, LLC (“Millrose Holdings”), Millrose Properties SPE LLC and any of the other Millrose subsidiaries), and Millrose’s future plans, strategies and objectives. You can generally identify forward-looking statements by our use of forward-looking terminology such as “may”, “can”, “shall”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue” or other similar words or the negatives thereof intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this release include statements regarding: Millrose’s plans and objectives for future operations, including plans and objectives relating to the future growth of our business and our homesite option platform; the availability of capital at any given time to finance the various endeavors, projects and acquisitions that are expected or planned for Millrose, as well as the availability of capital that needs to be reserved for specified uses (whether contractually or by law); expectations about the quality and value of our homesites and the existence of any liabilities attached to the homesites, and the adequacy of the protection, including our counterparties’ indemnification of Millrose in connection with the land assets acquired under the counterparty agreements; expectations and assumptions regarding our ongoing relationships with counterparties, including expectations that counterparties will fully perform their obligations under existing agreements, and timely exercise their purchase option; our expected business, operations and financial position; expectations and assumptions regarding our industry, the real estate markets or the economy, including statements regarding the competitive landscape; the possibility of providing our homesite option platform and continuing our expansion to new counterparties, and the nature of any such future arrangements; any expected use, development or sale of land assets that we have acquired or may acquire in the future; expectations and assumptions around our relationship with our external manager, Kennedy Lewis Land and Residential Advisors LLC, an affiliate and wholly-owned subsidiary of Kennedy Lewis Investment Management LLC; our status as a real estate investment trust (“REIT”) and MPH Parent’s, RCH Holdings, Inc.’s, and Millrose Holdings’ status as taxable REIT subsidiaries; expectations around ownership limits of our common stock; expectations and assumptions around our source of revenues, expected income, ability to secure financing or incur and repay indebtedness, and ability to comply with restrictions contained in our debt covenants; and other forward-looking statements, are all based on currently known or available information, which may not be indicative of future
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results (particularly as we are a recently formed company and have had limited historical operations as a standalone company), as well as assumptions and expectations that involve numerous risks and uncertainties. All forward-looking statements included in this release are qualified in their entirety by, and should be read in the context of, the risk factors and other factors disclosed in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov.
Non-GAAP Financial Measures
Invested Capital is a non-GAAP financial measure that represents the balance on which monthly cash option fees are paid by counterparties. Invested Capital includes certain components of our consolidated financial statements related to (i) homesites under option contracts, (ii) development loans receivable, and (iii) liabilities. The most directly comparable GAAP financial measure is homesites under option contracts as presented in the Company’s consolidated balance sheets. Management uses Invested Capital as a measure of the capital deployed and believes that the figure is useful to investors because it serves as the basis for generating option fees and other related income. This non-GAAP measure is presented solely to permit investors to more fully understand how our management assesses underlying performance and is not, and should not be viewed as, a substitute for GAAP measures, and should be viewed in conjunction with our GAAP financial measures.
AFFO means the Adjusted Funds From Operations, which are calculated as the net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate depreciation, adjusted to eliminate the impact of non-recurring items that are not reflective of ongoing operations and certain non-cash items that reduce or increase net income (loss) in accordance with GAAP, and also adjusted for income tax expense (other than income tax expenses of our TRSs) that will not be incurred following our election and qualification to be subject to tax as a REIT for U.S. federal income tax purposes.
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Millrose Properties, Inc.
Consolidated Balance Sheets
December 31, 2025 and 2024
(Dollars in thousands, except share amounts)
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December 31, |
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December 31, |
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2025 |
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2024 |
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Assets |
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Inventories |
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Land and land under development |
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$ |
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— |
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$ |
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2,978,807 |
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Finished homesites |
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— |
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2,486,483 |
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Total inventories |
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— |
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5,465,290 |
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Homesites under option contracts |
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8,872,695 |
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— |
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Development loan receivables, net |
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328,999 |
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— |
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Cash |
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35,046 |
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— |
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Other assets |
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21,367 |
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— |
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Total assets |
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9,258,107 |
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5,465,290 |
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Liabilities and stockholders’ equity |
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Accounts payable and accrued expenses |
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— |
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282,730 |
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Builder deposits |
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927,004 |
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— |
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Debt obligations, net |
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2,112,062 |
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24,188 |
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Development guarantee holdback liability |
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100,000 |
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— |
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Deferred tax liabilities |
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77,333 |
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— |
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Other liabilities |
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185,446 |
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— |
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Total liabilities |
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3,401,845 |
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306,918 |
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Commitments and contingencies (See Note 9) |
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Stockholders’ equity |
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Preferred stock, $0.01 par value, 50,000,000 shares authorized, 0 shares issued at December 31, 2025 |
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— |
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— |
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Class A common stock, $0.01 par value, 275,000,000 shares authorized, 154,183,686 shares issued at December 31, 2025 |
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1,542 |
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— |
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Class B common stock, $0.01 par value, 175,000,000 shares authorized, 11,819,811 shares issued at December 31, 2025 |
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118 |
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— |
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Predecessor equity |
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— |
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5,158,372 |
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Additional paid-in capital |
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5,873,087 |
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— |
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Distribution in excess of net income |
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(18,485 |
) |
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— |
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Total stockholders’ equity |
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5,856,262 |
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5,158,372 |
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Total liabilities and stockholders’ equity |
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$ |
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9,258,107 |
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$ |
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5,465,290 |
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5
Millrose Properties, Inc.
Consolidated Statements of Operations
For the Three Months and Year Ended December 31, 2025
(Dollars in thousands, except share amounts)
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Three months ended |
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Year ended |
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December 31, |
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December 31, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenues: |
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Option fee revenues |
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$ |
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179,466 |
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$ |
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- |
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$ |
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570,957 |
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$ |
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- |
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Development loan income |
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10,035 |
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- |
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29,504 |
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- |
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Total revenues |
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189,501 |
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- |
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600,461 |
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- |
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Operating expenses: |
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Management fee expense |
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27,791 |
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- |
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87,751 |
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- |
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Stock-based compensation expense |
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307 |
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- |
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677 |
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- |
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Provision for credit loss expense |
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665 |
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- |
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1,005 |
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- |
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Sales, general, and administrative expenses from pre-spin periods |
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- |
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65,803 |
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24,960 |
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246,221 |
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Total operating expenses |
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28,763 |
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65,803 |
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114,393 |
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246,221 |
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Income (loss) from operations |
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160,738 |
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(65,803 |
) |
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486,068 |
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(246,221 |
) |
Other income (expense): |
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Interest income |
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2,346 |
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- |
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7,702 |
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- |
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Interest expense |
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(35,223 |
) |
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- |
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(91,792 |
) |
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- |
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Other expenses |
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(123 |
) |
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- |
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(1,605 |
) |
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- |
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Total other income (expense) |
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(33,000) |
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- |
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(85,695 |
) |
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- |
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Net income (loss) before income taxes |
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127,738 |
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(65,803 |
) |
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400,373 |
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(246,221 |
) |
Income tax expense |
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5,500 |
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- |
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20,509 |
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- |
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Net income (loss) |
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$ |
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122,238 |
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$ |
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(65,803 |
) |
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$ |
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379,864 |
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$ |
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(246,221 |
) |
Adjustment for expenses from pre-spin periods |
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- |
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- |
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24,960 |
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- |
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Net income attributable to Millrose Properties, Inc. Common stockholders |
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$ |
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122,238 |
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$ |
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(65,803 |
) |
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$ |
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404,824 |
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$ |
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(246,221 |
) |
Basic earnings per share of Class A and |
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$ |
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0.74 |
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$ |
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- |
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$ |
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2.44 |
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$ |
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- |
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Diluted earnings per share of Class A and |
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$ |
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0.74 |
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$ |
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- |
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$ |
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2.44 |
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$ |
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- |
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Basic weighted average common shares |
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166,003,497 |
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- |
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166,003,497 |
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- |
|
Diluted weighted average common shares |
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166,039,595 |
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- |
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166,026,608 |
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- |
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Three Months Ended December 31, 2025 |
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(in thousands) |
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Master |
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Other |
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Total |
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Invested Capital Reconciliation of GAAP to Non-GAAP |
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GAAP reported homesites under option contracts as of December 31, 2025 |
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$ |
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6,530,760 |
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$ |
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2,341,935 |
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$ |
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8,872,695 |
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Add: Development loan receivables (gross) |
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— |
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330,004 |
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330,004 |
|
Remove: Interest receivable on development loans |
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— |
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(6,696 |
) |
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(6,696 |
) |
Remove: Option fee receivables from homesites under option contracts |
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(44,511 |
) |
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(16,801 |
) |
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(61,312 |
) |
Remove: Net deferred tax assets and deferred tax liabilities from homesite inventories |
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(56,824 |
) |
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— |
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(56,824 |
) |
Remove: Earnest deposits from homesites under option contracts |
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|
|
7,560 |
|
|
|
|
— |
|
|
|
|
7,560 |
|
Remove: Homesites under option contracts acquired through purchase money mortgages |
|
|
|
(33,000 |
) |
|
|
|
— |
|
|
|
|
(33,000 |
) |
Add: Development holdback liability |
|
|
|
(100,000 |
) |
|
|
|
— |
|
|
|
|
(100,000 |
) |
Add: Builder deposit liabilities |
|
|
|
(201,948 |
) |
|
|
|
(280,800 |
) |
|
|
|
(482,748 |
) |
Total Invested Capital as of December 31, 2025 |
|
$ |
|
6,102,037 |
|
|
$ |
|
2,367,642 |
|
|
$ |
|
8,469,679 |
|
Invested Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Invested Capital as of September 30, 2025 (1) |
|
$ |
|
6,335,854 |
|
|
$ |
|
1,817,555 |
|
|
$ |
|
8,153,409 |
|
Takedown Proceeds (2) |
|
|
|
(884,734 |
) |
|
|
|
(139,280 |
) |
|
|
|
(1,024,014 |
) |
Land Acquisition and Development Funding (3) |
|
|
|
650,917 |
|
|
|
|
689,367 |
|
|
|
|
1,340,284 |
|
Invested Capital as of December 31, 2025 |
|
$ |
|
6,102,037 |
|
|
$ |
|
2,367,642 |
|
|
$ |
|
8,469,679 |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted Average Yield as of December 31, 2025 (4) |
|
|
|
8.5 |
% |
|
|
|
11.0 |
% |
|
|
|
9.2 |
% |
Implied Quarterly Income Run Rate as of December 31, 2025 (5) |
|
$ |
|
131 |
|
|
$ |
|
65 |
|
|
$ |
|
196 |
|
Weighted Average Remaining Life as of December 31, 2025 (6) |
|
|
3.3 Years |
|
|
|
2.0 Years |
|
|
|
3.0 Years |
|
|||
Weighted Average Maturity as of December 31, 2025 (7) |
|
|
64 Months |
|
|
|
35 Months |
|
|
|
57 Months |
|
|||
1. Includes (a) homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks, and (b) takedown and land acquisition and development funding activity for the year ended December 31, 2025 2. Reduction in investment balance for the year ended December 31, 2025 from (a) homesite takedowns pursuant to option agreements, net of deposit credits adjusted for non-option earning deposits, and (b) repayment of development loans 3. Includes acquisitions of homesites under option contracts, net of option earnings deposits, and development loan funding for the year ended December 31, 2025 4. Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of September 26, 2025 5. Calculated by multiplying Invested Capital balance at end of period by weighted average yield as of quarter end, adjusted for the number of days in the quarter. In millions 6. Calculated by taking weighted average life per each community weighted by investment balance 7. Calculated by taking months until the final scheduled homesite sale per each community weighted by investment balance.
|
|
Year Ended December 31, 2025 |
|
||||||||||||
(in thousands) |
|
Master |
|
|
Other |
|
|
Total |
|
||||||
Invested Capital Reconciliation of GAAP to Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP reported homesites under option contracts as of December 31, 2025 |
|
$ |
|
6,530,760 |
|
|
$ |
|
2,341,935 |
|
|
$ |
|
8,872,695 |
|
Add: Development loan receivables (gross) |
|
|
|
— |
|
|
|
|
330,004 |
|
|
|
|
330,004 |
|
Remove: Interest receivable on development loans |
|
|
|
— |
|
|
|
|
(6,696 |
) |
|
|
|
(6,696 |
) |
Remove: Option fee receivables from homesites under option contracts |
|
|
|
(44,511 |
) |
|
|
|
(16,801 |
) |
|
|
|
(61,312 |
) |
Remove: Net deferred tax assets and deferred tax liabilities from homesite inventories |
|
|
|
(56,824 |
) |
|
|
|
— |
|
|
|
|
(56,824 |
) |
Remove: Earnest deposits from homesites under option contracts |
|
|
|
7,560 |
|
|
|
|
— |
|
|
|
|
7,560 |
|
Remove: Homesites under option contracts acquired through purchase money mortgages |
|
|
|
(33,000 |
) |
|
|
|
— |
|
|
|
|
(33,000 |
) |
Add: Development holdback liability |
|
|
|
(100,000 |
) |
|
|
|
— |
|
|
|
|
(100,000 |
) |
Add: Builder deposit liabilities |
|
|
|
(201,948 |
) |
|
|
|
(280,800 |
) |
|
|
|
(482,748 |
) |
Total Invested Capital as of December 31, 2025 |
|
$ |
|
6,102,037 |
|
|
$ |
|
2,367,642 |
|
|
$ |
|
8,469,679 |
|
Invested Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Invested Capital as of February 10, 2025 (1) |
|
$ |
|
6,407,547 |
|
|
$ |
|
— |
|
|
$ |
|
6,407,547 |
|
Takedown Proceeds (2) |
|
|
|
(3,167,953 |
) |
|
|
|
(254,863 |
) |
|
|
|
(3,422,816 |
) |
Land Acquisition and Development Funding (3) |
|
|
|
2,862,443 |
|
|
|
|
2,622,505 |
|
|
|
|
5,484,948 |
|
Invested Capital as of December 31, 2025 |
|
$ |
|
6,102,037 |
|
|
$ |
|
2,367,642 |
|
|
$ |
|
8,469,679 |
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted Average Yield as of December 31, 2025 (4) |
|
|
|
8.5 |
% |
|
|
|
11.0 |
% |
|
|
|
9.2 |
% |
Implied Quarterly Income Run Rate as of December 31, 2025 (5) |
|
$ |
|
519 |
|
|
$ |
|
260 |
|
|
$ |
|
779 |
|
Weighted Average Remaining Life as of December 31, 2025 (6) |
|
|
3.3 Years |
|
|
|
2.0 Years |
|
|
|
3.0 Years |
|
|||
Weighted Average Remaining Months to Exit as of December 31, 2025 (7) |
|
|
64 Months |
|
|
|
35 Months |
|
|
|
57 Months |
|
|||
1. Includes (a) homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks, and (b) takedown and land acquisition and development funding activity for the year ended December 31, 2025 2. Reduction in investment balance for the year ended December 31, 2025 from (a) homesite takedowns pursuant to option agreements, net of deposit credits adjusted for non-option earning deposits, and (b) repayment of development loans 3. Includes acquisitions of homesites under option contracts, net of option earnings deposits, and development loan funding for the year ended December 31, 2025 4. Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of September 26, 2025 5. Calculated by multiplying Invested Capital balance at end of period by weighted average yield as of 12/31/25. In millions 6. Calculated by taking weighted average life per each community weighted by investment balance 7. Calculated by taking months until the final scheduled homesite sale per each community weighted by investment balance.
|
|
Three Months Ended |
|
||
(in thousands, except share amounts) |
|
December 31, 2025 |
|
||
Net income attributable to Millrose Properties, Inc. common stockholders |
|
$ |
|
122,238 |
|
Adjustments: |
|
|
|
|
|
Add: Amortization of deferred financing and issuance costs (1) |
|
|
|
2,394 |
|
Add: Rating agency expenses (2) |
|
|
|
8 |
|
Add: Provision for credit loss expense (3) |
|
|
|
665 |
|
Add: Stock-based compensation expense (4) |
|
|
|
307 |
|
Total adjustments |
|
|
|
3,374 |
|
AFFO attributable to Millrose Properties, Inc. common stockholders |
|
$ |
|
125,612 |
|
AFFO basic earnings per share of Class A and Class B Common Stock |
|
$ |
|
0.76 |
|
AFFO diluted earnings per share of Class A and Class B Common Stock |
|
$ |
|
0.76 |
|
|
|
|
|
|
|
Reconciliation of GAAP earnings per share to AFFO per share |
|
|
|
|
|
GAAP reported basic and diluted earnings per share of Class A and Class B Common Stock |
|
$ |
|
0.74 |
|
Adjustments: |
|
|
|
|
|
Add: Amortization of deferred financing and issuance costs (1) |
|
|
|
0.01 |
|
Add: Rating agency expenses (2) |
|
|
|
0.00 |
|
Add: Provision for credit loss expense (3) |
|
|
|
0.01 |
|
Add: Stock-based compensation (4) |
|
|
|
0.00 |
|
AFFO basic and diluted earnings per share of Class A and Class B Common Stock |
|
$ |
|
0.76 |
|
|
|
|
|
|
|
Basic weighted average common shares outstanding of Class A and Class B Common Stock |
|
|
|
166,003,497 |
|
Diluted weighted average common shares |
|
|
|
166,039,595 |
|
1. Reflected in interest expense in the consolidated statements of operations. See Note 8. Debt Obligations in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025 (the “Form 10-K”). See Note 2. Basis of Presentation and Significant Accounting Policies, Development Loan Receivables in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 2. Reflected in other expenses in the consolidated statements of operations. See Note 2. Basis of Presentation and Significant Accounting Policies, Other Income (Expenses) in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 3. Provision for credit losses for development loan receivables. See Note 2. Basis of Presentation and Significant Accounting Policies, Development Loan Receivables in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 4. RSUs granted to each member of the Board under 2024 Incentive Plan. See Note 11. Stock-Based Compensation in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025.
|
|
Year Ended |
|
||
(in thousands, except share amounts) |
|
December 31, 2025 |
|
||
Net income attributable to Millrose Properties, Inc. common stockholders |
|
$ |
|
404,824 |
|
Adjustments: |
|
|
|
|
|
Add: Amortization of deferred financing and issuance costs (1) |
|
|
|
20,273 |
|
Add: Rating agency expenses (2) |
|
|
|
1,125 |
|
Add: Provision for credit loss expense (3) |
|
|
|
1,005 |
|
Add: Stock-based compensation expense (4) |
|
|
|
677 |
|
Total adjustments |
|
|
|
23,080 |
|
AFFO attributable to Millrose Properties, Inc. common stockholders |
|
$ |
|
427,904 |
|
AFFO basic earnings per share of Class A and Class B Common Stock |
|
$ |
|
2.58 |
|
AFFO diluted earnings per share of Class A and Class B Common Stock |
|
$ |
|
2.58 |
|
|
|
|
|
|
|
Reconciliation of GAAP earnings per share to AFFO per share |
|
|
|
|
|
GAAP reported basic and diluted earnings per share of Class A and Class B Common Stock |
|
$ |
|
2.44 |
|
Adjustments: |
|
|
|
|
|
Add: Amortization of deferred financing and issuance costs (1) |
|
|
|
0.12 |
|
Add: Rating agency expenses (2) |
|
|
|
0.01 |
|
Add: Provision for credit loss expense (3) |
|
|
|
0.01 |
|
Add: Stock-based compensation (4) |
|
|
|
0.00 |
|
AFFO basic and diluted earnings per share of Class A and Class B Common Stock |
|
$ |
|
2.58 |
|
|
|
|
|
|
|
Basic weighted average common shares outstanding of Class A and Class B Common Stock |
|
|
|
166,003,497 |
|
Diluted weighted average common shares |
|
|
|
166,026,608 |
|
1. Reflected in interest expense in the consolidated statements of operations. See Note 8. Debt Obligations in the consolidated financial statements. Includes $11.9 million accelerated amortization for the DDTL Credit Agreement termination in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025 (the “Form 10-K”). 2. Reflected in other expenses in the consolidated statements of operations. See Note 2. Basis of Presentation and Significant Accounting Policies, Other Income (Expenses) in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 3. Provision for credit losses for development loan receivables. See Note 2. Basis of Presentation and Significant Accounting Policies, Development Loan Receivables in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 4. RSUs granted to each member of the Board under the 2024 Incentive Plan. See Note 12. Stock-Based Compensation in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025.
Contactsacts
Ben Spicehandler / Stephen Pettibone FGS Global MillroseProperties.fgsglobal.com
Source: Millrose Properties, Inc.
Fourth Quarter 2025 & Full Year 2025 Earnings Presentation Exhibit 99.2
Disclaimer This disclaimer applies to this document and the verbal comments of any person presenting it. This presentation, together with any such oral or written comments, is referred to herein as the “Presentation.” Forward-Looking Statements This Presentation relating to Millrose Properties, Inc. (“Millrose,” “we,” “our,” “us,” “MRP,” or the “Company”) contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1934, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about Millrose’s plans, strategies and objectives, as well as statements about Millrose’s business (including MPH Parent, LLC (“MPH Parent”), Millrose Properties Holdings, LLC (“Millrose Holdings”), Millrose Properties SPE LLC and any of the other Millrose subsidiaries), and Millrose’s future plans, strategies and objectives. You can generally identify forward-looking statements by our use of forward-looking terminology such as “may”, “can”, “shall”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue” or other similar words or the negatives thereof intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this Presentation include statements regarding: Millrose’s plans and objectives for future operations, including plans and objectives relating to the future growth of our business and our homesite option platform; the availability of capital at any given time to finance the various endeavors, projects and acquisitions that are expected or planned for Millrose, as well as the availability of capital that needs to be reserved for specified uses (whether contractually or by law); expectations about the quality and value of our homesites and the existence of any liabilities attached to the homesites, and the adequacy of the protection, including our counterparties’ indemnification of Millrose in connection with the land assets acquired under the counterparty agreements; expectations and assumptions regarding our ongoing relationships with counterparties, including expectations that counterparties will fully perform their obligations under existing agreements, and timely exercise their purchase option; our expected business, operations and financial position; expectations and assumptions regarding our industry, the real estate markets or the economy, including statements regarding the competitive landscape; the possibility of providing our homesite option platform and continuing our expansion to new counterparties, and the nature of any such future arrangements; any expected use, development or sale of land assets that we have acquired or may acquire in the future; expectations and assumptions around our relationship with our external manager, Kennedy Lewis Land and Residential Advisors LLC, an affiliate and wholly-owned subsidiary of Kennedy Lewis Investment Management LLC; our status as a real estate investment trust (“REIT”) and MPH Parent’s, RCH Holdings, Inc.’s, and Millrose Holdings’ status as taxable REIT subsidiaries (“TRSs”); expectations around ownership limits of our common stock; expectations and assumptions around our source of revenues, expected income, ability to secure financing or incur and repay indebtedness, and ability to comply with restrictions contained in our debt covenants; and other forward-looking statements, are all based on currently known or available information, which may not be indicative of future results (particularly as we are a recently formed company and have had limited historical operations as a standalone company), as well as assumptions and expectations that involve numerous risks and uncertainties. All forward-looking statements included in this Presentation are qualified in their entirety by, and should be read in the context of, the risk factors and other factors disclosed in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov. Assumptions relating to these statements involve judgments with respect to, among other things, future macroeconomic, competitive and market conditions, future land values, future business decisions, future environmental conditions and relationships with our counterparties, all of which are difficult or impossible to accurately predict and many of which are beyond our control. All forward-looking statements included herein are based on information available to us as of the date hereof and speak only as of such date. The forward-looking statements contained in this Presentation reflect our views as of the date of this Presentation about future events and are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ significantly from those expressed or implied in any forward-looking statement. Although we believe the assumptions underlying the forward-looking statements, and the forward-looking statements themselves, are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that these forward-looking statements will prove to be accurate and our actual results, performance and achievements may be materially different from that expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by Millrose or any other person that our objectives and plans, which we consider to be reasonable, will be achieved.
Disclaimer (Cont’d) Industry and Market Information This Presentation includes market and industry data and forecasts that the Company has derived from independent consultant reports, publicly available information, various industry publications, other published industry sources, and its internal data and estimates. Independent consultant reports, industry publications and other published industry sources generally indicate that the information contained therein was obtained from sources believed to be reliable. Although the Company believes that these third-party sources are reliable, it does not guarantee the accuracy or completeness of this information, and the Company has not independently verified this information. The Company’s internal data and estimates are based upon information obtained from trade and business organizations and other contacts in the markets in which the Company operates and management's understanding of industry conditions. Although the Company believes that such information is reliable, it has not had this information verified by any independent sources. In addition, the information contained in this Presentation is as of the date hereof (except where otherwise indicated), and the Company has no obligation to update such information, including in the event that such information becomes inaccurate or if estimates change. Subsequent materials may be provided by or on behalf of the Company in its discretion and such information may supplement, modify or supersede the information in these materials. Neither the Company, nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss or damage howsoever arising from any use of these materials or their contents or otherwise arising in connection with these materials. Basis of Presentation The financial information presented herein (i) for the periods prior to the February 7, 2025 spin-off from Lennar (the “Spin-Off”) is that of the business assets that were spun off to Millrose (the “Predecessor Millrose Business”) and is derived from the consolidated financial statements and accounting records of Lennar, and (ii) for the periods after the February 7, 2025 Spin-Off is that of Millrose and its subsidiaries. Millrose was formed on March 19, 2024 and has operated as an independent company since the Spin-Off on February 7, 2025. The Predecessor Millrose Business financial statements reflect the expenses directly attributable to the Predecessor Millrose Business, and, land inventory assets and liabilities included in the Spin-Off, at Lennar’s historical basis. The financial statements of the Predecessor Millrose Business may not be indicative of Millrose’s future performance as an independent, publicly traded company following the Spin-Off and do not necessarily reflect what the financial position, results of operations, and cash flows would have been had Millrose operated as a separate, publicly traded company during the periods presented. The financial information of the Predecessor Millrose Business prior to the Spin-Off also presents a combination of entities under common control that have been “carved out” from Lennar’s consolidated financial statements. Historically, financial statements of the Predecessor Millrose Business have not been prepared as it was not operated separately from Lennar. This financial information reflects the expenses of the Predecessor Millrose Business and includes certain assets and liabilities that have been included in the Spin-Off, which have been reflected at Lennar’s historical basis. Non-GAAP Measures This Presentation contains both financial measures prepared and presented in accordance with generally accepted accounting principles (“GAAP”) and non-GAAP financial measures, such as Invested Capital and Adjusted Funds from Operations (“AFFO”), which are measurements of financial performance that are not prepared and presented in accordance with GAAP. Accordingly, these measures should not be considered as substitutes for data prepared and presented in accordance with GAAP. Non-GAAP financial measures should not be construed as being more important than comparable GAAP measures. Although we use or have used these non-GAAP financial measures to assess the performance of our business and for the other purposes, the use of these non-GAAP financial measures as an analytical tool has limitations, and you should not consider them in isolation, or as a substitute for analysis of our results of operations as reported in accordance with GAAP. In addition, because not all companies use identical calculations, the non-GAAP financial measures included in this Presentation may not be comparable to similarly titled measures disclosed by other companies, including our peers or other companies in our industry. Please see “Appendix” within the Presentation for reconciliation of the non-GAAP financial measures included in this Presentation to our most directly comparable financial measure calculated and presented in accordance with GAAP.
Full Year 2025 Highlights Investment Activity Financing Activity $5.5bn2 Total Net Acquisition & Development $3.4bn3 Total Net Takedowns 31,5754 Homesites Delivered 11.0% Weighted Average Yield on Non-MPA Acquisitions as of 12/315 15 Counterparties6 0 Number of Terminations $2.4bn1 Invested Capital outside of Master Program Agreement (MPA) $1.335bn Revolving Credit Facility Executed revolving credit facility with bank group prior to Spin-Off, providing flexible liquidity for invested capital growth Initial Credit Ratings Received rating from Fitch (BBB-), S&P (BB), and Moody’s (Ba2) ahead of unsecured notes offerings $1.25bn & $750m Senior Notes Raised $2 billion of unsecured debt capital, issuing $1.25bn of 6.375% Senior Notes due 2030 and $750m of 6.25% Senior Notes due 2032 +90bps increase 2025 Dividend 8.5% 7.6% Portfolio Weighted Average Yield 1. Represents Invested Capital, which is a non-GAAP metric. Please reference reconciliation table in the Appendix. 2. Land acquisition shown net of deposits received for total portfolio, including Lennar 3. Reduction in investment balance from homesite sales pursuant to the option agreements of the entire portfolio, including Lennar; takedowns are net of deposit credits adjusted for non-option earning deposits. 4. Represents total homesites delivered to homebuilders across entire portfolio, including Lennar but excluding development loans. 5. Based on average of option rate and/or loan interest rate weighted by investment balance, assumes three-month term SOFR rate as of 9/26/25 6. Total portfolio, including Lennar 7. Non-GAAP metric, please reference reconciliation table in the Appendix. 8. Represents annualized AFFO divided by quarter-end shareholder’s equity of $5.9 billion 9. Represents a normalized quarterly basis; the actual dividend paid was $0.38. +50bps increase 9.2%5 8.7%5 +16% increase $0.75 $0.659 AFFO7 Yield on Equity8
Fourth Quarter 2025 Results Financial Portfolio Liquidity & Capitalization Net income of $122.2m, or $0.74 per share Adjusted Funds From Operations (AFFO)1 of $125.6m, or $0.76 per share Increase of $0.02 per share, or 3%, compared to prior quarter driven by an increase in Invested Capital outside of the Lennar Master Program Agreement Q4 quarterly dividend of $124.5m, or $0.75 per share Funded $1.3B for land acquisition and development and received net takedown proceeds of $1.0B, of which we received $651m2 in takedown proceeds under Lennar MPA Increased invested capital outside of Lennar MPA by $550m resulting in 2.4B4 with a weighted average yield of 11.0%3 as of 12/31 Total assets of $9.3B and net investment balance of $8.5B4 (net of non-option earning deposits & other reductions) as of 12/31 As of December 31, 2025: Total liquidity of $1.3bn comprised of cash on hand and revolving credit facility capacity $1.250bn and $750m outstanding on two tranches of Senior Notes, which offerings closed in August and September, respectively $110m outstanding on revolving credit facility 1. Non-GAAP metric; please reference reconciliation table in the Appendix. Defined as Adjusted Funds From Operations, which are calculated as the net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate depreciation, adjusted to eliminate the impact of non-recurring items that are not reflective of ongoing operations and certain non-cash items that reduce or increase net income (loss) in accordance with GAAP, and also adjusted for income tax expense (other than income tax expenses of our TRSs) that will not be incurred following our election and qualification to be subject to tax as a REIT for U.S. federal income tax purposes. 2. GAAP reported gross takedowns included in Inventory less associated deposit liability on the Company’s balance sheet 3. Based on average of option rate and/or loan interest rate weighted by investment balance, assumes three-month term SOFR rate as of 9/26/25 4. Represents Invested Capital, which is a non-GAAP metric. Please reference reconciliation table in the Appendix.
Q4 2025 Financial Overview December 31, 2025 Option Fee Revenues $179.5m Development Loan Income $10.0m Management Fee Expense ($27.8m) Stock-Based Compensation Expense ($0.3m) Provision for Credit Loss Expense ($0.7m) Income From Operations $160.7m Interest Income $2.3m Interest Expense ($35.2m) Income Tax Expense ($5.5m) Other Expenses ($0.1m) Net Income Per Share $122.2m $0.74 Adjusted Funds From Operations (AFFO)1 Per Share $125.6m $0.76 Dividend Per Share $124.5m $0.75 $179m revenue from Option Fees and Development Loan Income $27.8m Management Fee Expense, equal to 1.25% of gross tangible assets Q4 GAAP net income of $122.2m, and AFFO1 of $125.6m, or $0.76 per share 1. Non-GAAP metric; please reference reconciliation table in the Appendix. Defined as Adjusted Funds From Operations, which are calculated as the net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate depreciation, adjusted to eliminate the impact of non-recurring items that are not reflective of ongoing operations and certain non-cash items that reduce or increase net income (loss) in accordance with GAAP, and also adjusted for income tax expense (other than income tax expenses of our TRSs) that will not be incurred following our election and qualification to be subject to tax as a REIT for U.S. federal income tax purposes. 2. Represents annualized AFFO divided by quarter-end shareholder’s equity of $5.9 billion. Represents 8.5% AFFO yield on equity2 (annualized basis)
Book Value per Share Roll-Forward Quarterly dividend of $124.5m, or $0.75 per share Annualized dividend yield increased ~20bps compared to prior quarter MRP intends to distribute 100% of AFFO1 back to shareholders in the form of dividends $35.29 +$0.74 -$0.75 $35.28 Represents 8.4% dividend yield on equity2 1. Non-GAAP metric; please reference reconciliation table in the Appendix. Defined as Adjusted Funds From Operations, which are calculated as the net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate depreciation, adjusted to eliminate the impact of non-recurring items that are not reflective of ongoing operations and certain non-cash items that reduce or increase net income (loss) in accordance with GAAP, and also adjusted for income tax expense (other than income tax expenses of our TRSs) that will not be incurred following our election and qualification to be subject to tax as a REIT for U.S. federal income tax purposes. 2. Represents annualized dividend divided by the average shareholder’s equity for the current and prior quarter. Net Income per share
8 Millrose is currently capitalized with $2.0B Senior Notes and $0.1B outstanding on revolver, on $9.3B of total assets Ample liquidity of ~$1.3B revolving credit facility capacity and cash Conservative leverage profile of 26% Debt to Capitalization CAPITALIZATION Significant asset base and extensive liquidity with a flexible capital structure as of 12/31 ($B) Note: Data as of December 31, 2025 1. Liquidity as of 9/30/25 includes $243M in cash and $1.3B remaining revolving credit facility capacity. 2. Liquidity as of 12/31/25 includes $35M in cash and $1.3B remaining revolving credit facility capacity. 3. Calculated as total debt divided by total debt and equity. As of 12/31 2 Conservative Leverage Profile Total Assets Corporate Debt Total Liquidity2 Debt to Capitalization3 $2.1B 26% $9.3B $1.3B As of 9/30 1
1. GAAP reported gross takedowns included in Inventory on the Company’s balance sheet. 2. GAAP reported gross takedowns included in Inventory less associated deposit liability on the Company’s balance sheet 3. Capital deployed includes new deals as well as development funding. Continuous Capital Redeployment Strategy in Action Millrose received $1,035M1 in total takedown proceeds ($990M2 net of deposit) for the quarter ended December 31, 2025. These proceeds, coupled with $110m drawdown on the revolving credit facility, have been redeployed into new acquisitions with Lennar and other customers Majority of takedown proceeds from Lennar were redeployed into new Lennar opportunities Acquisition Financing (Revolving Credit Facility Draw) Proceeds from Takedowns 3 3
Invested Capital by Customer Category – Q4 2025 Key Portfolio Metrics In millions Lennar Master Program Agreement Other Agreements Total Invested Capital as of 9/301,4 $6,336 $1,818 $8,153 Takedown Proceeds2 ($885) ($139) ($1,024) Land Acquisition and Development Funding3 $651 $689 $1,340 Invested Capital as of 12/314 $6,102 $2,368 $8,470 Wtd. Avg Yield as of 12/315 8.5% 11.0% 9.2% Implied Quarterly Income Run Rate as of 12/316 $131 $65 $196 Wtd. Avg Remaining Life as of 12/317 3.3 years 2.0 Years 3.0 Years Wtd. Avg Maturity as of 12/318 64 Months 35 Months 57 Months Strong demand for the platform, resulting in $1.3B in land acquisition and development funding in Q4 Outside of the Lennar Master Program Agreement, Invested Capital increased $550m to $2,368m Total weighted average yield increased 10bps compared to prior quarter 1. Homesite inventory less non-option earning deposits, net deferred tax liability and other holdbacks 2. Reduction in investment balance from homesite sales pursuant to the option agreements associated with the applicable category shown; takedowns are net of deposit credits adjusted for non-option earning deposits. 3. Land acquisition shown net of deposits received 4. Non-GAAP metric, please reference reconciliation table in the Appendix; Totals may not foot due to rounding 5. Based on average of option rate and/or loan interest rate weighted by investment balance, assumes three-month term SOFR rate as of 9/26/25 6. Calculated by taking Invested Capital balance at end of period multiplied by weighted average yield as of quarter end, adjusted for number of days in Q4 7. Calculated by taking weighted average life per each community weighted by investment balance 8. Calculated by taking months until the final scheduled homesite sale per each community weighted by investment balance.
Invested Capital by Customer Category - Full Year 2025 Key Portfolio Metrics In millions Lennar Master Program Agreement Other Agreements Total Invested Capital as of 2/101,4 $6,408 - $6,408 Takedown Proceeds2 ($3,168) ($255) ($3,423) Land Acquisition and Development Funding3 $2,862 $2,623 $5,485 Invested Capital as of 12/314 $6,102 $2,368 $8,470 Wtd. Avg Yield as of 12/315 8.5% 11.0% 9.2% Implied Annual Income Run Rate as of 12/316 $519 $260 $779 Wtd. Avg Remaining Life as of 12/317 3.3 years 2.0 Years 3.0 Years Wtd. Avg Maturity as of 12/318 64 Months 35 Months 57 Months 1. Homesite inventory less non-option earning deposits, net deferred tax liability and other holdbacks 2. Reduction in investment balance from homesite sales pursuant to the option agreements associated with the applicable category shown; takedowns are net of deposit credits adjusted for non-option earning deposits 3. Land acquisition shown net of deposits received 4. Non-GAAP metric, please reference reconciliation table in the Appendix; Totals may not foot due to rounding 5. Based on average of option rate and/or loan interest rate weighted by investment balance, assumes three-month term SOFR rate as of 9/26/25 6. Calculated by taking Invested Capital balance at end of period multiplied by weighted average yield as of 12/31/25. 7. Calculated by taking weighted average life per each community weighted by investment balance 8. Calculated by taking months until the final scheduled homesite sale per each community weighted by investment balance. Strong demand for the platform, resulting in $5.5B in land acquisition and development funding in 2025 Outside of the Lennar Master Program Agreement, Invested Capital increased $2.4bn driven by $2.6bn in land acquisition and development funding Total portfolio weighted average yield increased 50bps
Invested Capital Growth Continued diversification outside of Lennar Master Program Agreement evidenced by $2.4bn growth in invested capital1 with 14 distinct counterparties outside of Lennar by 12/31/25 Net Funding In millions 1. Invested capital outside of Lennar Master Program Agreement 2. Total counterparties includes Lennar. 1 2
142,139 Current Homesites1 933 Total Communities1 30 Total States ~$9.2B Total Land Assets2 ~$5.9B Shareholders Equity 9.2% Weighted Average Yield ~$16.1B Takedown Proceeds 26% Debt to Capitalization3 ~$1.3B Liquidity4 1. Total homesites as of 12/31/2025 excluding homesites associated with investments in development loans 2. Homesites under option contracts and other related assets as of 12/31/25 on consolidated balance sheet 3. Calculated as total debt divided by total debt and equity. 4. Liquidity as of 12/31/25 includes $35M in cash and $1.3B remaining revolving credit facility capacity. PLATFORM SNAPSHOT (as of 12/31/2025) Millrose at a Glance State Homesites Takedown Proceeds ($B) % of Total Proceeds 1 California 13,345 $ 3.4 21.1 % 2 Texas 37,548 2.9 18.2 3 Florida 20,526 1.9 12.1 4 South Carolina 9,554 1.0 6.4 5 North Carolina 5,227 0.8 4.9 6 Oklahoma 10,486 0.7 4.3 7 Maryland 4,578 0.6 3.6 8 Colorado 3,735 0.5 3.3 9 Arizona 4,483 0.5 3.2 10 Virginia 3,114 0.4 2.7 Top 10 Subtotal 112,596 $ 12.8 79.8 % Remaining 29,543 3.3 20.2 % Total 142,139 $ 16.1 100.0 % TOP 10 STATES BY ESTIMATED TAKEDOWN PROCEEDS
Illustrative Pathway to Continued AFFO1 Growth 1. Non-GAAP metric. Defined as Adjusted Funds From Operations, which are calculated as the net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate depreciation, adjusted to eliminate the impact of non-recurring items that are not reflective of ongoing operations and certain non-cash items that reduce or increase net income (loss) in accordance with GAAP, and also adjusted for income tax expense (other than income tax expenses of our TRSs) that will not be incurred following our election and qualification to be subject to tax as a REIT for U.S. federal income tax purposes. 2. Represents a component of Invested Capital, which is a non-GAAP metric. Please reference reconciliation table in the Appendix. 3. Annualized based on LQA Q4 2025 AFFO. 4. Based on basic weighted average common shares outstanding as of 12/31/25. 5. Assumes 5.7% interest rate on $1.3B of new debt. 6. Assumes effective tax rate of ~5.1% 7. Assumes new equity raised at YE 2025 book value for illustrative purposes. 8. Does not factor in deployment of takedown proceeds. MRP increased invested capital by $2.1B2 in 2025, driven by $2.6B2 of net acquisition and development funding outside of the Lennar Master Program Agreement. Similar deployment volumes are expected in 2026, which should lead to meaningful AFFO1 growth Negative impact to AFFO $3.00 AFFO / Share4 $3.30 AFFO / Share7 6 Positive impact to AFFO +10.0% YoY $2B in net new capital deployed at 11% yields (as compared with 2025 net new deployment of $2.4B2 in Other Agreements) $1B in net new capital deployed at 11% yields would equate to $537M in AFFO1 (7.8% annual AFFO1 growth) 8 3 5 1 1
New Home Inventory is Beginning to Recalibrate as Builders Exhibit Production Discipline Single family housing starts have moderated Builders are adjusting to market conditions with units under construction falling Source: Census Bureau, Evercore ISI Research In thousands In thousands Source: US Census Bureau, US Department of Housing and Urban Development, retrieved from FRED, Federal Reserve Bank of St. Louis.
Affordability Improvement Source: John Burns Research and Consulting, LLC (Data: Published Jan 2026) Calculated monthly mortgage payment is Principal & Interest only, and assumes a 20% down payment on 30-year conventional mortgage Monthly New Median Home Price and Monthly Median Household Income from JBREC Monthly Principal and Interest calculated by Millrose
Public Builders Maintain Historically High Margins Despite cyclical headwinds, builders have continued to maintain homesite takedowns and flex margins rather than seek option terminations Large Public Homebuilders Average Gross Margins DHI, KBH, LEN, MTH, NVR, PHM, TMHC, TOL Builders Tracked: DHI, KBH, LEN, MTH, NVR, PHM, TMHC, TOL Sources: Bloomberg; public homebuilder public filings; John Burns Research and Consulting, LLC (Data: Builders’ most recent quarter, Pub: Feb 2026)
Structural Tailwinds Remain within Housing Industry Total Housing Inventory (New Plus Existing) remains historically low Homebuilder Gross & Net Leverage at record lows LT Avg. Source: Census Bureau, NAR, Evercore ISI Research (in thousands) In thousands Source: Company Data, Evercore ISI; Includes: CAA, DHI, KBH, LEN, LGIH, MDC, MHO, MTH, NVR, PHM, TMHC, TOL, TPH Forecast 18% 9%
Appendix
Consolidated Balance Sheet December 31, December 31, 2025 2024 Assets Inventories Land and land under development $ — $ 2,978,807 Finished homesites — 2,486,483 Total inventories — 5,465,290 Homesites under option contracts 8,872,695 — Development loan receivables, net 328,999 — Cash 35,046 — Other assets 21,367 — Total assets 9,258,107 5,465,290 Liabilities and stockholders’ equity Accounts payable and accrued expenses — 282,730 Builder deposits 927,004 — Debt obligations, net 2,112,062 24,188 Development guarantee holdback liability 100,000 — Deferred tax liabilities 77,333 — Other liabilities 185,446 — Total liabilities 3,401,845 306,918 Commitments and contingencies (See Note 9) Stockholders’ equity Preferred stock, $0.01 par value, 50,000,000 shares authorized, 0 shares issued at December 31, 2025 — — Class A common stock, $0.01 par value, 275,000,000 shares authorized, 154,183,686 shares issued at December 31, 2025 1,542 — Class B common stock, $0.01 par value, 175,000,000 shares authorized, 11,819,811 shares issued at December 31, 2025 118 — Predecessor equity — 5,158,372 Additional paid-in capital 5,873,087 — Distribution in excess of net income (18,485 ) — Total stockholders’ equity 5,856,262 5,158,372 Total liabilities and stockholders’ equity $ 9,258,107 $ 5,465,290
Consolidated Statements of Operations Years ended December 31, 2025 2024 2023 Revenues: Option fee revenues $ 570,957 $ — $ — Development loan income 29,504 — — Total revenues 600,461 — — Operating expenses: Management fee expense 87,751 — — Stock-based compensation expense 677 — — Provision for credit loss expense 1,005 — — Sales, general, and administrative expenses from pre-spin periods 24,960 246,221 209,792 Total operating expenses 114,393 246,221 209,792 Income (loss) from operations 486,068 (246,221 ) (209,792 ) Other income (expense): Interest income 7,702 — — Interest expense (91,792 ) — — Other expenses (1,605 ) — — Total other income (expense) (85,695 ) — — Net income (loss) before income taxes 400,373 (246,221 ) (209,792 ) Income tax expense 20,509 — — Net income (loss) $ 379,864 $ (246,221 ) $ (209,792 ) Adjustment for expenses from pre-spin periods 24,960 — — Net income attributable to Millrose Properties, Inc. Common stockholders $ 404,824 $ (246,221 ) $ (209,792 ) Basic earnings per share of Class A and Class B Common Stock $ 2.44 $ — $ — Diluted earnings per share of Class A and Class B Common Stock $ 2.44 $ — $ — Basic weighted average common shares outstanding of Class A and Class B Common Stock 166,003,497 — — Diluted weighted average common shares 166,026,608 — —
Adjusted Funds From Operations - Reconciliation 1. Reflected in interest expense in the consolidated statements of operations. See Note 8. Debt Obligations in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025 (the “Form 10-K”). See Note 2. Basis of Presentation and Significant Accounting Policies, Development Loan Receivables in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 2. Reflected in other expenses in the consolidated statements of operations. See Note 2. Basis of Presentation and Significant Accounting Policies, Other Income (Expenses) in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 3. Provision for credit losses for development loan receivables. See Note 2. Basis of Presentation and Significant Accounting Policies, Development Loan Receivables in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 4. RSUs granted to each member of the Board under 2024 Incentive Plan. See Note 11. Stock-Based Compensation in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025.
Adjusted Funds From Operations - Reconciliation 1. Reflected in interest expense in the consolidated statements of operations. See Note 8. Debt Obligations in the consolidated financial statements. Includes $11.9 million accelerated amortization for the DDTL Credit Agreement termination in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025 (the “Form 10-K”). 2. Reflected in other expenses in the consolidated statements of operations. See Note 2. Basis of Presentation and Significant Accounting Policies, Other Income (Expenses) in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 3. Provision for credit losses for development loan receivables. See Note 2. Basis of Presentation and Significant Accounting Policies, Development Loan Receivables in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025. 4. RSUs granted to each member of the Board under the 2024 Incentive Plan. See Note 12. Stock-Based Compensation in the consolidated financial statements included in Millrose’s Form 10-K for the year ended December 31, 2025.
Asset Cross-Termination Pooling 1. Number of Homesites exclude investments associated with development loans 2. Homesite inventory and development loans receivables, less deposits, deferred tax liability, interest receivable on development loans, and other holdbacks on post-spin acquired assets. 3. Calculated as total amount of invested capital within a pool.
Asset List – By State 1. Or prospective Homesites if fully entitled, as applicable 2. Excludes properties, homesites, and takedown prices for investments associated with development loans 3. Totals may not foot due to rounding.
Invested Capital Reconciliation – Full Year 2025 1. Includes (a) homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks, and (b) takedown and land acquisition and development funding activity for the year ended December 31, 2025 2. Reduction in investment balance for the year ended December 31, 2025 from (a) homesite takedowns pursuant to option agreements, net of deposit credits adjusted for non-option earning deposits, and (b) repayment of development loans 3. Includes acquisitions of homesites under option contracts, net of option earnings deposits, and development loan funding for the year ended December 31, 2025 4. Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of September 26, 2025 5. Calculated by multiplying Invested Capital balance at end of period by weighted average yield as of 12/31/25. In millions 6. Calculated by taking weighted average life per each community weighted by investment balance 7. Calculated by taking months until the final scheduled homesite sale per each community weighted by investment balance. Year Ended December 31, 2025 (in thousands) Master Program Agreement Other Agreements Total Invested Capital Reconciliation of GAAP to Non-GAAP GAAP reported homesites under option contracts as of December 31, 2025 $ 6,530,760 $ 2,341,935 $ 8,872,695 Add: Development loan receivables (gross) — 330,004 330,004 Remove: Interest receivable on development loans — (6,696 ) (6,696 ) Remove: Option fee receivables from homesites under option contracts (44,511 ) (16,801 ) (61,312 ) Remove: Net deferred tax assets and deferred tax liabilities from homesite inventories (56,824 ) — (56,824 ) Remove: Earnest deposits from homesites under option contracts 7,560 — 7,560 Remove: Homesites under option contracts acquired through purchase money mortgages (33,000 ) — (33,000 ) Add: Development holdback liability (100,000 ) — (100,000 ) Add: Builder deposit liabilities (201,948 ) (280,800 ) (482,748 ) Total Invested Capital as of December 31, 2025 $ 6,102,037 $ 2,367,642 $ 8,469,679 Invested Capital Invested Capital as of February 10, 2025 (1) $ 6,407,547 $ — $ 6,407,547 Takedown Proceeds (2) (3,167,953 ) (254,863 ) (3,422,816 ) Land Acquisition and Development Funding (3) 2,862,443 2,622,505 5,484,948 Invested Capital as of December 31, 2025 $ 6,102,037 $ 2,367,642 $ 8,469,679 (in millions) Weighted Average Yield as of December 31, 2025 (4) 8.5 % 11.0 % 9.2 % Implied Quarterly Income Run Rate as of December 31, 2025 (5) $ 519 $ 260 $ 779 Weighted Average Remaining Life as of December 31, 2025 (6) 3.3 Years 2.0 Years 3.0 Years Weighted Average Maturity as of December 31, 2025 (7) 64 Months $ 35 Months $ 57 Months
Invested Capital Reconciliation – Q4 2025 1. Includes (a) homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks, and (b) takedown and land acquisition and development funding activity for the year ended December 31, 2025 2. Reduction in investment balance for the year ended December 31, 2025 from (a) homesite takedowns pursuant to option agreements, net of deposit credits adjusted for non-option earning deposits, and (b) repayment of development loans 3. Includes acquisitions of homesites under option contracts, net of option earnings deposits, and development loan funding for the year ended December 31, 2025 4. Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of September 26, 2025 5. Calculated by multiplying Invested Capital balance at end of period by weighted average yield as of quarter end, adjusted for the number of days in the quarter. In millions 6. Calculated by taking weighted average life per each community weighted by investment balance 7. Calculated by taking months until the final scheduled homesite sale per each community weighted by investment balance. Three Months Ended December 31, 2025 (in thousands) Master Program Agreement Other Agreements Total Invested Capital Reconciliation of GAAP to Non-GAAP GAAP reported homesites under option contracts as of December 31, 2025 $ 6,530,760 $ 2,341,935 $ 8,872,695 Add: Development loan receivables (gross) — 330,004 330,004 Remove: Interest receivable on development loans — (6,696 ) (6,696 ) Remove: Option fee receivables from homesites under option contracts (44,511 ) (16,801 ) (61,312 ) Remove: Net deferred tax assets and deferred tax liabilities from homesite inventories (56,824 ) — (56,824 ) Remove: Earnest deposits from homesites under option contracts 7,560 — 7,560 Remove: Homesites under option contracts acquired through purchase money mortgages (33,000 ) — (33,000 ) Add: Development holdback liability (100,000 ) — (100,000 ) Add: Builder deposit liabilities (201,948 ) (280,800 ) (482,748 ) Total Invested Capital as of December 31, 2025 $ 6,102,037 $ 2,367,642 $ 8,469,679 Invested Capital Invested Capital as of September 30, 2025 (1) $ 6,335,854 $ 1,817,555 $ 8,153,409 Takedown Proceeds (2) (884,734 ) (139,280 ) (1,024,014 ) Land Acquisition and Development Funding (3) 650,917 689,367 1,340,284 Invested Capital as of December 31, 2025 $ 6,102,037 $ 2,367,642 $ 8,469,679 (in millions) Weighted Average Yield as of December 31, 2025 (4) 8.5 % 11.0 % 9.2 % Implied Quarterly Income Run Rate as of December 31, 2025 (5) $ 131 $ 65 $ 196 Weighted Average Remaining Life as of December 31, 2025 (6) 3.3 Years 2.0 Years 3.0 Years Weighted Average Maturity as of December 31, 2025 (7) 64 Months $ 35 Months $ 57 Months
Invested Capital Reconciliation – Q3 2025 1. Includes (a) Homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks, and (b) takedown and land acquisition and development funding activity during the first and second quarters of 2025. 2. Reduction in investment balance during the third quarter of 2025 from homesite sales pursuant to option agreements associated with the applicable category shown; takedowns are net of deposit credits adjusted for non-option earning deposits. 3. Includes land acquisitions during the third quarter 2025, net of option earning deposits. 4. Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of June 26, 2025. 5. Calculated by taking Invested Capital balance at end of period multiplied by weighted average yield as of quarter end, adjusted for the number of days in the quarter. In Millions.
Invested Capital Reconciliation – Q2 2025 1. Includes (a) Homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks, and (b) takedown and land acquisition and development funding activity during the first quarter 2025. 2. Reduction in investment balance from homesite sales pursuant to the option agreements associated with the applicable category shown; takedowns are net of deposit credits adjusted for non-option earning deposits. 3. Includes land acquisitions during the second quarter 2025, net of option earning deposits. 4. Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of March 27, 2025. 5. Calculated by taking invested capital balance at end of period multiplied by weighted average yield as of quarter end, adjusted for number of days in Q2.
Invested Capital Reconciliation – Q1 2025 1. Includes Homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks 2. Reduction in investment balance from homesite sales pursuant to option agreements associated with the applicable category shown 3. Includes land acquisition after February 10, 2025, net of option earning deposits 4. Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of March 31, 2025
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