Millrose Properties Inc (NYSE: MRP) is a real estate investment trust (REIT) that acquires and holds land and land development assets, then sells finished homesites to homebuilders through option contracts. Revenue comes from homesite takedowns by counterparties, primarily Lennar, under structured option agreements, along with development loan receivables. The company operates as an externally managed REIT, with day-to-day operations handled by Kennedy Lewis Capital Company (KL) under a Management Agreement, for which KL earns a fee of 1.25% of Tangible Assets (as defined in the Management Agreement). Millrose had no employees as of December 31, 2025. The company was spun off from Lennar and filed its first 10-K on March 2, 2026, covering fiscal year ended December 31, 2025. CEO and President is Darren L. Richman, a Managing Partner of Kennedy Lewis. The company is subject to a 1:1 debt-to-equity ratio limit and cannot pledge properties subject to Lennar's purchase rights without Lennar's consent.

Revenue model

Millrose earns income from homesite option contract takedowns by counterparties and from development loan receivables. The external manager, Kennedy Lewis, receives a management fee of 1.25% of Tangible Assets. Some option agreements provide for reimbursement of transaction and asset management expenses, including third-party legal, diligence, and servicing costs, by counterparties.

Products and services

Land and land under development held as inventory; finished homesites sold via option contracts; development loans to land developers (development loan receivables). As of December 31, 2025, assets include homesites under option contracts and development loan receivables.

Customers and end markets

Primary counterparty is Lennar, the homebuilder from which Millrose was spun off. Additional counterparties described as 'Other Counterparties' who request land banking with Millrose. End market is residential homebuilding. Transactions directed by Lennar or other counterparties who specifically request to land bank with Millrose are allocated 100% to Millrose, provided Millrose has available capital.

Value-chain role

Land banker sitting between raw land acquisition and homebuilder lot delivery. Millrose acquires or optionson land, manages or finances development, and delivers finished homesites to homebuilders under option contracts. The company is externally managed by Kennedy Lewis, which also manages other land banking entities that may compete with Millrose for opportunities.

Geographic exposure

Operates across multiple U.S. jurisdictions at the federal, state, and local levels, as referenced in the 10-K filed March 2, 2026. No specific state or regional breakdown was disclosed in the filing excerpts provided.

Source: SEC 10-K, filed 2026-03-02

Industry: Real Estate