Millrose Properties

Overview

Millrose Properties is a Homesite Option Purchase Platform (HOPP’R) that supports residential homebuilders by funding the acquisition and development of homesites under purchase option agreements. This innovative approach provides homebuilders with a just-in-time delivery system for finished homesites, enabling them to maintain production volumes and optimize balance sheet efficiency across various market environments. By offering this service, Millrose Properties generates contractual recurring cash returns for investors. The company's strategy focuses on delivering current income and predictable cash flows to shareholders throughout the land acquisition and development process. Millrose Properties utilizes a proprietary technology platform that provides real-time data analytics to drive acquisition decisions, ensuring that every transaction undergoes rigorous independent due diligence. This approach allows the company to offer an asset-light model to its diverse roster of homebuilder partners, facilitating large-scale land acquisition and horizontal development of homesites. Millrose Properties has demonstrated significant growth and expansion since its inception. In February 2025, the company completed the acquisition of approximately 24,000 homesites from Rausch Coleman Homes for approximately $900 million in cash. This acquisition was funded using Millrose's cash on hand and was followed by the execution of option agreements with Lennar Corporation on all acquired homesites. The company's external management by Kennedy Lewis Land and Residential Advisors LLC, an affiliate of Kennedy Lewis Investment Management, provides access to deep financial expertise and extensive operational platforms, further strengthening its position in the market. In the first quarter of 2026, Millrose Properties reported a net income attributable to common shareholders of $122.9 million, or $0.74 per share, with total revenues of $194.9 million. The total portfolio weighted average annualized yield was 9.2% as of March 31, 2026, reflecting the company's consistent execution of its strategy and its ability to adapt to the evolving needs of the homebuilding industry. This performance underscores Millrose Properties' commitment to providing reliable capital availability for homebuilders and generating value for its investors.

Investment Focus

• Homebuilders seeking capital-efficient land acquisition and development solutions

Portfolio Companies