Millrose Properties, Inc. (NYSE: MRP)

Millrose Properties, Inc. is a corporation that purchases and develops residential land and sells finished homesites to homebuilders through option contracts with predetermined costs and takedown schedules. The company also provides development loans secured by property intended for residential use. Millrose operates an asset light model whereby it recycles capital from takedown proceeds into new land acquisitions and development activities. It is externally managed and advised by Kennedy Lewis Land and Residential Advisors LLC pursuant to a management agreement. The firm’s proprietary technology platform, a land banking data warehouse and enterprise resource planning system, supports due diligence, transaction processing and asset management across diverse geographies. Millrose intends to be treated as a real estate investment trust for U. S. federal income tax purposes beginning with its taxable year ended December 31, 2025.

Millrose generates revenue primarily from recurring option fees paid by counterparties under homesite option contracts. These fees include monthly option payments that provide a predictable cash stream and option deposits that are earned upon contract execution. In addition, the company earns interest income on the outstanding balance of development loans secured by residential property. Revenue from option contracts is recognized over the term of the agreement, while interest income accrues on loan principal. The combination of fee income and loan interest constitutes the company’s total revenue.

The company operates through the following segments.

• Homesite Option Platform: This segment focuses on acquiring residential land, developing it into finished homesites and selling those homesites to homebuilders through option contracts that specify predetermined takedown prices and schedules. The segment generates revenue from monthly option fees, option deposits and interest earned on development loans that finance horizontal infrastructure such as roads, utilities and drainage.

Millrose distinguishes itself in the residential land banking market as the only publicly traded company employing a large scale recycled capital model via its homesite option platform. While private investment funds and asset managers offer similar land banking services, Millrose benefits from a proprietary technology platform that enables rapid due diligence and high volume transaction processing. Its partnership with Kennedy Lewis provides deep industry expertise and a vertically integrated servicing division. Additionally, the company’s geographically diverse portfolio spanning 30 states and its asset light strategy reduce reliance on external capital and enhance resilience across market cycles.

Millrose serves homebuilders and land development companies across the United States. Its largest counterparty is Lennar, which accounted for approximately 88% of the company’s total option fee revenues in 2025. Other significant counterparties include the New Home Company and RCH Holdings, the parent of Rausch, with whom Millrose completed major land banking transactions in 2025. The company also works with a range of regional and national homebuilders seeking to expand access to finished homesites while adopting an asset light approach.