Millrose Properties Reports Strong Q2 2025 Financial Results

Millrose Properties Inc Class A ( (MRP) ) has released its Q2 earnings. Here is a breakdown of the information Millrose Properties Inc Class A presented to its investors.

Millrose Properties, Inc. is a company specializing in the purchase and development of residential land, primarily serving the homebuilding sector by providing finished homesites through option contracts.

In its latest earnings report for the second quarter of 2025, Millrose Properties announced robust financial results, highlighting strong cash generation from homesite sales and significant capital redeployment in land acquisitions and development.

Key financial metrics from the report include a net income of $112.8 million, or $0.68 per share, driven by $149.0 million in option fees and related income. The company also reported an Adjusted Funds From Operations (AFFO) of $115.0 million, or $0.69 per share, with an annualized return on equity of 7.8%. Millrose’s portfolio achieved a weighted average annualized yield of 8.9%, reflecting successful expansion beyond its primary agreement with Lennar.

Strategically, Millrose has strengthened its position by closing a significant portfolio transaction with New Home Company and securing a $1 billion delayed draw term loan commitment, enhancing its capital capacity. The company continues to diversify its platform, with substantial investments in homesite inventory and capital partnerships.

Looking ahead, Millrose’s management remains confident in scaling the company while maintaining high returns, supported by a robust backlog and expanding opportunities. The company has raised its AFFO guidance for the year, indicating strong expectations for continued growth and capital efficiency.