Millrose Properties, the land-banking company spun off from Lennar last year, reported second-quarter results Tuesday showing its business has grown well beyond its original parent, with $9.7 billion in homesites now under option across 30 states and a newly disclosed role financing part of the hostile bid for Beazer Homes. The results were disclosed in an earnings release filed with the U.S. Securities and Exchange Commission.
Millrose posted total revenue of $196.9 million for the quarter, generated from option fees and development loan income rather than home sales. Net income came to $125.9 million, or $0.76 per share, while adjusted funds from operations reached $127.6 million, or $0.77 per share — a quarterly run rate the company said sits at the high end of its own guidance range of $0.80 per share. The board declared a quarterly dividend of $127.9 million, or $0.77 per share, the company’s sixth consecutive quarterly dividend increase.
The company’s model is built around buying and entitling land, then selling finished homesites to builders under option contracts that let the builders draw down lots as they are needed rather than carrying the land themselves. As of quarter-end, Millrose held $9.7 billion in homesites under option or related assets across 143,771 homesites in 877 communities, funded by $9.7 billion in total assets, $2.5 billion in total debt and $1.4 billion in cash and available liquidity. The company said it has recorded zero option terminations since its 2025 spinoff, and stockholders’ equity stood at $5.85 billion.
Millrose’s original master land program with Lennar remains its largest single relationship, with $6.4 billion in homesites under option and $6.0 billion of invested capital earning an 8.5% yield. But the company has been diversifying quickly: agreements with other homebuilders now account for $3.2 billion in homesites under option and $2.8 billion of invested capital, earning a higher 10.6% yield, across a total of 19 builder relationships — up from a business that began with essentially one customer. Blended across the full portfolio, Millrose reported a weighted average yield of 9.2%.
Among the newer relationships, Millrose disclosed it intends to provide land-banking capital supporting Dream Finders Homes’ proposed acquisition of Beazer Homes, tying the company’s balance sheet to one of the more contested deals in homebuilding this year. Dream Finders raised its all-cash offer for Beazer to $32.00 per share in late June and has been adding board members as it presses the bid, which Beazer’s board has not yet agreed to engage with on Dream Finders’ terms. Millrose also said it is entering multifamily for the first time, through a partnership with JPI, the Sumitomo Forestry-owned apartment developer, to provide a similar permanent-capital land structure outside of single-family homebuilding.
“We delivered another strong quarter and declared our sixth consecutive quarterly dividend increase, results that highlight the reliability of the Millrose model,” said Darren Richman, Millrose’s chief executive and president, in the earnings release. Richman said the company views itself as operating “in the early stages of defining this industry,” a reference to land banking’s relatively small footprint as an institutionally capitalized, publicly traded business relative to homebuilders’ balance sheets nationally.
What it means: Land banking has traditionally been financed off individual homebuilders’ own balance sheets or through private capital, tying builders’ land costs directly to their debt load. Millrose’s growth — particularly its expansion beyond Lennar to 19 builder relationships and now a would-be acquirer in a live hostile bid — suggests more homebuilders are willing to pay a yield to a third party in exchange for keeping land off their own books, a structure that becomes more attractive as land acquisition costs climb in markets where data centers and other nonresidential users are also bidding for sites.
What to watch: Whether Millrose’s financing commitment to Dream Finders becomes material if the Beazer bid succeeds, and whether the company’s move into multifamily land banking with JPI signals a broader push beyond single-family homebuilding.
