MILLROSE PROPERTIES, INC., 10-Q filed on 7/31/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2025
Jul. 30, 2025
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Document Quarterly Report true  
Document Transition Report false  
Entity Registrant Name Millrose Properties, Inc.  
Entity Central Index Key 0002017206  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company true  
Entity Ex Transition Period true  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity File Number 001-42476  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 99-2056892  
Entity Address, Address Line One 600 Brickell Avenue  
Entity Address, Address Line Two Suite 1400  
Entity Address, City or Town Miami  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 33131  
City Area Code 212  
Local Phone Number 782-3841  
Title of 12(b) Security Class A common stock, par value $0.01 per share  
Trading Symbol MRP  
Security Exchange Name NYSE  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   154,183,686
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   11,819,811
v3.25.2
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2025
Dec. 31, 2024
Inventories    
Homesite inventory and other related assets $ 7,845,178,000  
Land and land under development   $ 2,978,807,000
Finished homesites   2,486,483,000
Total inventories 7,845,178,000 5,465,290,000
Cash 66,575,000 0
Option fee receivables 46,635,000  
Other assets 15,258,000  
Total assets 7,973,646,000 5,465,290,000
Liabilities and stockholders' equity    
Accounts payable and accrued expenses   282,730,000
Builder deposits 799,562,000  
Debt obligations, net 1,011,162,000 24,188,000
Development guarantee holdback liability 100,000,000  
Deferred tax liabilities 56,913,000  
Other liabilities 131,760,000  
Total liabilities 2,099,397,000 306,918,000
Commitments and contingencies (See Note 8)
Stockholders' equity    
Preferred stock, $0.01 par value, 50,000,000 shares authorized, 0 shares issued at June 30, 2025
Predecessor equity   5,158,372,000
Additional paid-in capital 5,872,687,000  
Retained earnings (98,000)  
Total stockholders' equity 5,874,249,000 5,158,372,000
Total liabilities and stockholders' equity 7,973,646,000 5,465,290,000
Class A Common Stock    
Stockholders' equity    
Common stock value 1,542,000
Class B Common Stock    
Stockholders' equity    
Common stock value $ 118,000
v3.25.2
Condensed Consolidated Balance Sheets (Parenthetical)
Jun. 30, 2025
$ / shares
shares
Preferred stock, par value | $ / shares $ 0.01
Preferred stock, shares authorized 50,000,000
Preferred stock, shares issued 0
Preferred stock, shares outstanding 0
Common stock, par value | $ / shares $ 0.01
Common stock, shares authorized 450,000,000
Class A Common Stock  
Common stock, par value | $ / shares $ 0.01
Common stock, shares authorized 275,000,000
Common stock, shares issued 154,183,686
Class B Common Stock  
Common stock, par value | $ / shares $ 0.01
Common stock, shares authorized 175,000,000
Common stock, shares issued 11,819,811
v3.25.2
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Option fee revenues and other related income $ 149,002   $ 231,700  
Operating Expenses:        
Management fee expense 21,960   34,064  
Stock-based compensation expense 181   181  
Sales, general, and administrative expenses from pre-spin periods   $ 59,761 24,960 $ 116,748
Total operating expenses 22,141 59,761 59,205 116,748
Income (loss) from operations 126,861 (59,761) 172,495 (116,748)
Other income (expense):        
Interest income 1,818   2,906  
Interest expense (10,285)   (12,821)  
Other expenses (866)   (866)  
Total other income (expense) (9,333)   (10,781)  
Net income (loss) before income taxes 117,528 (59,761) 161,714 (116,748)
Income tax expense 4,768 0 9,148 0
Net income (Loss) 112,760 (59,761) 152,566 (116,748)
Adjustment for expenses from pre-spin periods     24,960  
Net income attributable to Millrose Properties, Inc. Common shareholders $ 112,760 $ (59,761) $ 177,526 $ (116,748)
Basic earnings per share $ 0.68   $ 1.07  
Diluted earnings per share $ 0.68   $ 1.07  
Basic weighted average common shares outstanding 166,003,497   166,003,497  
Diluted weighted average common shares outstanding 166,031,175   166,020,988  
Class A and Class B Common Stock        
Other income (expense):        
Basic earnings per share $ 0.68   $ 1.07  
Diluted earnings per share $ 0.68   $ 1.07  
Basic weighted average common shares outstanding [1] 166,003,497   166,003,497  
Diluted weighted average common shares outstanding [2] 166,031,175   166,020,988  
[1] Basic weighted average common shares for the three and six months ended June 30, 2025 represent the common shares issued at the Spin-Off, which are the common shares outstanding as of June 30, 2025. No publicly-listed shares were outstanding as of June 30, 2024.
[2] Diluted weighted shares for the three and six months ended June 30, 2025 include 28,300 restricted stock unit (“RSUs”) granted in the aggregate to each member of tbe Board under the 2024 Incentive Plan on April 3, 2025. The RSUs were unvested as of June 30, 2025.
v3.25.2
Condensed Consolidated Statements of Operations (Parenthetical) - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2025
Jun. 30, 2024
Public shares outstanding     0
Restricted stock unit ("RSUs") granted   0  
RSUs      
Restricted stock unit ("RSUs") granted 28,300 28,300  
v3.25.2
Condensed Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Class A Common Stock
Common Stock
Class B Common Stock
Additional Paid In Capital
Retained Earnings
Pre-Spin Predecessors Equity
Beginning balance at Dec. 31, 2023 $ 4,458,961         $ 4,458,961
Net income (loss) (116,748)         (116,748)
Stock based compensation 8,863         8,863
Contributions to Predecessor $ (581,922)         (581,922)
Ending balance, Shares at Jun. 30, 2024 0          
Ending balance at Jun. 30, 2024 $ 3,769,154         3,769,154
Beginning balance at Mar. 31, 2024 4,242,853         4,242,853
Net income (loss) (59,761)         (59,761)
Stock based compensation 1,705         1,705
Contributions to Predecessor $ (415,643)         415,643
Ending balance, Shares at Jun. 30, 2024 0          
Ending balance at Jun. 30, 2024 $ 3,769,154         3,769,154
Beginning balance at Dec. 31, 2024 5,158,372         5,158,372
Net income (loss) 152,566       $ 177,526 (24,960)
Adjustment for expenses from pre-spin periods 24,960         24,960
Common stock issued, Spin-Off, Shares   120,983,633 11,819,811      
Common stock issued, Spin-Off   $ 1,210 $ 118 $ (1,328)    
Common stock retained by Lennar at Spin-Off, Shares   33,200,053        
Common stock retained by Lennar at Spin-Off   $ 332   (332)    
Contributions from Lennar, Spin-Off 5,874,166     5,874,166    
Reversal of predecessor equity (5,158,372)         $ (5,158,372)
Stock based compensation 181     181    
Dividends declared (177,624)       (177,624)  
Ending balance, Shares at Jun. 30, 2025   154,183,686 11,819,811      
Ending balance at Jun. 30, 2025 5,874,249 $ 1,542 $ 118 5,872,687 (98)  
Beginning balance, Shares at Mar. 31, 2025   154,183,686 11,819,811      
Beginning balance at Mar. 31, 2025 5,875,851 $ 1,542 $ 118 5,872,506 1,685  
Net income (loss) 112,760       112,760  
Stock based compensation 181     181    
Dividends declared (114,543)       (114,543)  
Ending balance, Shares at Jun. 30, 2025   154,183,686 11,819,811      
Ending balance at Jun. 30, 2025 $ 5,874,249 $ 1,542 $ 118 $ 5,872,687 $ (98)  
v3.25.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Cash flows from (used in) operating activities    
Net income (loss) $ 152,566 $ (116,748)
Adjustments to reconcile net income (loss) to net cash from operating activities    
Sales, general, and administrative expenses from pre-spin periods 24,960  
Interest paid-in-kind (5,657)  
Stock-based compensation expense 181 8,863
Amortization of discount   80
Amortization of debt financing costs 1,520  
Changes in assets and liabilities    
Land inventory   709,600
Option fee receivables (46,635)  
Other assets (859)  
Accounts payable and accrued expenses   (1,895)
Other liabilities 4,217  
Deferred tax liabilities 89  
Net cash flows from operating activities 130,382 599,900
Cash flows from (used in) investing activities    
Option deposits from Lennar, Spin-Off 584,848  
Purchase of Rausch land assets, net of builder deposits (858,938)  
Investment in homesite inventory and other related assets, net of builder deposits (2,497,097)  
Sales of homesite inventory and other related assets, net of builder deposit credits 1,438,192  
Net cash used in investing activities (1,332,995)  
Cash flows from (used in) financing activities    
Cash contribution from Lennar, Spin-Off 415,152  
Principal payments on debt   (17,978)
Net transfers to Predecessor   (581,922)
Payments for Spin-Off deal costs (77,948)  
Financing cost payments for revolving credit facility (9,865)  
Financing cost payments for delayed draw term loan facility (14,070)  
Proceeds from revolving credit facility borrowings 950,000  
Repayments of revolving credit facility borrowings (925,000)  
Proceeds from delayed draw term loan facility 1,000,000  
Dividends paid to shareholders (63,081)  
Payment of seller notes (6,000)  
Net cash flows from (used in) financing activities 1,269,188 (599,900)
Net increase in cash 66,575  
Cash at beginning of period 0  
Cash at end of period 66,575  
Non-cash impacts of Millrose Spin-Off    
Homesite inventory contributed by Lennar, net of option deposits 4,911,279  
Decrease in deferred tax liabilities 59,836  
Liabilities for transaction deal costs and seller notes (96,948)  
Common stock issued, Spin-Off (1,660)  
Non-cash increase in additional paid-in-capital, Spin-Off (4,872,506)  
Reversal of Predecessor equity at Spin-Off 5,158,372  
Non-cash impacts of Rausch land acquisition    
Option deposits (90,264)  
Development guarantee holdback liability (100,000)  
Increase in deferred tax liabilities (116,660)  
Builder deposits for investments in homesite inventory (201,055)  
Builder deposit credits for sales of homesite inventory 76,711  
Reduction of debt for inventories financed by sellers   $ (13,905)
Dividends declared but not paid 114,542  
Supplemental disclosure of cash flow information    
Cash paid for interest 8,731  
Cash paid for income taxes $ 8,500  
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure        
Net Income (Loss) $ 112,760 $ (59,761) $ 152,566 $ (116,748)
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.2
Description of Business
 6 Months Ended
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business

Note 1. Description of Business

Millrose Properties, Inc. (“Millrose” and, together with its subsidiaries, the “Company”) is a corporation incorporated under the laws of the State Maryland on March 19, 2024 in connection with a spin-off (the “Spin-Off) from Lennar to create an independent, publicly traded company. On February 7, 2025, the Spin-Off was completed through a distribution of 120,983,633 shares of Class A common stock of Millrose, par value $0.01 per share, and 11,819,811 shares of Class B common stock of Millrose, par value $0.01 per share, to Lennar’s common stockholders, together representing approximately 80% of Millrose’s outstanding common stock. Lennar retained 33,200,053 shares of Millrose’s Class A common stock, approximately 20% of Millrose’s outstanding shares of common stock. As a result of the Spin-Off, Millrose became an independent, publicly traded company listed on the New York Stock Exchange under the symbol “MRP”. In connection with the Spin-Off:

•
Millrose received contributions from Lennar of $5.5 billion in land assets, representing approximately 87,000 homesites, and $1 billion in cash, which included $585 million of cash deposits related to option contracts;
•
Millrose entered into a Revolving Credit Facility (as defined below) with a commitment amount of up to $1.335 billion that is scheduled to mature on February 7, 2028;
•
Millrose entered into multiple agreements with Lennar; which include the Founder’s Right Agreement, Registration Rights Agreement, HOPP’R License Agreement, Master Program Agreement, Master Option Agreement, Master Construction Agreement, Multiparty Cross Agreement, Payment and Performance Guaranty, Recognition, Subordination and Non-Disturbance Agreement;
•
Millrose entered into a management agreement (the “Management Agreement”) with Kennedy Lewis Land and Residential Advisors LLC (“KL” or the “Manager”) for KL to manage the day-to-day operations of Millrose, subject to the supervision of the Millrose board of directors (the “Board”).

Prior to the Spin-Off, the operations and financial information that represent the business assets that were spun off to Millrose were wholly owned by and under the common control of Lennar and are collectively referred to as the “Predecessor Millrose Business”. After the Spin-Off, Millrose is an independent company that is externally managed and advised by KL with personnel provided by the Manager and officers recommended by the Manager and appointed by the Board, and performing all business operations for Millrose and its subsidiaries.

Millrose is a holding company whose land banking operations are conducted through Millrose Properties Holdings, LLC (“Millrose Holdings”), a Delaware limited liability company and a wholly owned operating subsidiary of Millrose, and other subsidiaries. Millrose and its subsidiaries also may make non-land banking investments from time to time. The Company purchases and develops residential land and sells finished homesites to homebuilders through option contracts with predetermined costs and takedown schedules. As fully developed homesites are taken down by the homebuilder, capital is recycled into future land acquisitions for homebuilders, providing each customer with uninterrupted access to capital. Through its subsidiaries, the Company holds finished homesites with homes under construction, finished homesites imminently ready for construction, land under development, land ready for development and land not yet ready for development.

On February 10, 2025, the Company acquired $1.158 billion in land assets, consisting of approximately 25,000 homesites through the acquisition of 100% of the outstanding stock of RCH Holdings, Inc., a newly formed parent holding company of Rausch Coleman Companies, LLC (“Rausch”), for approximately $859 million in cash, which is net of option deposits funded by Lennar and other holdbacks.

On May 12, 2025, the Company entered into a commitment with New Home Company (“New Home”) for Millrose to provide land banking capital of up to $700 million to support New Home’s acquisition of Landsea Homes (“Landsea”). On June 25, 2025, New Home completed the acquisition of Landsea and the Company funded land banking capital of $494.5 million at closing for the acquisition of a portfolio of homesites on which the Company executed option agreements with New Home. As a result of the transaction, the Company acquired $522.8 million in land assets, consisting of 4,186 homesites, for $494.5 million in cash, which is net of deposits of $28.3 million related to the option contracts.

In connection with the New Home transaction, on June 24, 2025, Millrose entered into the DDTL Credit Agreement (as defined below) that provides for a delayed draw term loan facility with commitments in the aggregate amount of $1.0 billion that is scheduled to mature on June 23, 2026. Proceeds of the DDTL Credit Facility (as defined below) were used to fund the New Home acquisition of Landsea and may be used for general corporate purposes (as further described below in Note 7. Debt Obligations).

v3.25.2
Basis of Presentation and Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation and Significant Accounting Policies

Note 2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, certain footnotes or other financial information normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the combined financial statements in the Company’s Form 10-K for the year ended December 31, 2024.

The unaudited condensed consolidated financial statements include the financial statements of the Predecessor Millrose Business prior to the Spin-Off, which are derived from the accounting records of Lennar. The Predecessor financial statements represent a combination of entities under common control that have been prepared under the legal entity method of carving out financial statements and have been prepared based on the assets transferred to Millrose in the Spin-Off. The Predecessor financial statements reflect the expenses directly attributable to the Predecessor Millrose Business, and, land inventory assets and liabilities included in the Spin-Off, at Lennar’s historical basis. The financial statements of the Predecessor Millrose Business may not be indicative of Millrose’s future performance as an independent, publicly traded company following the Spin-Off and do not necessarily reflect what the financial position, results of operations, and cash flows would have been had Millrose operated as a separate, publicly traded company during the periods presented.

The basis of accounting of the Predecessor Millrose Business for the three and six months ended June 30, 2024 is unchanged from that included in the notes to the combined financials statements in Form 10-K for the year ended December 31, 2024, which includes an allocation of all costs directly attributable to the Predecessor Millrose Business. The basis of accounting for the Predecessor Millrose Business for the six months ended June 30, 2025 includes an allocation of the average daily expense in 2024, using this allocation method, to the period of January 1, 2025 through February 7, 2025. See “ Sales, General, and Administrative Expenses from Pre-Spin Period” in this Note 2 below for more information.

The unaudited condensed consolidated financial statements after the Spin-Off include the accounts of the Company and its subsidiaries, including Millrose Holdings and other subsidiaries. The basis of presentation of significant accounting policies documented below includes that of Millrose after the Spin-Off as of June 30, 2025.

All intercompany balances and transactions have been eliminated in consolidation.

Segment and Geographic Information

Prior to the Spin-Off, the Predecessor Millrose Business did not operate as a separate reportable segment. Subsequent to the Spin-Off, the Company operates and derives revenue from its portfolio of homesite inventory through option contracts. As of June 30, 2025, the Company’s operations are conducted in the United States with properties geographically located across 29 states. The Chief Executive Officer serves as the Company’s Chief Operating Decision Maker (the “CODM”) and evaluates performance and resource allocation on a portfolio basis. Additionally, the Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company has a single operating and reportable segment (the “Reporting Segment”) for disclosure purposes in accordance with GAAP.

Net income attributable to Millrose, as presented on the Company’s unaudited condensed consolidated statements of operations, is a metric utilized by the CODM to assess the Reporting Segment’s performance and allocate resources. Total assets, as presented on the Company’s unaudited condensed consolidated balance sheets, is used to measure the Reporting Segment’s assets.

The Company will continue to monitor operations on an ongoing basis for any changes that may impact segment reporting as required under ASC 280, Segment Reporting.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash

The Company considers all investments with an original maturity of three months or less to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates their fair values due to the short maturity period. As of June 30, 2025, cash was $66.6 million and consisted of highly liquid deposit accounts and the Company held no cash equivalents. The Predecessor Millrose Business held no cash and cash equivalents at December 31, 2024.

Option Fee Receivables

Option fee receivables are stated at their net realizable value. The Company assesses for potential credit losses based on historical experience, creditworthiness of customers, and current economic conditions relevant to the Company. Option fee receivables were $46.6 million as of June 30, 2025 as compared to $0 as of December 31, 2024.

Option fee receivables consist of amounts due from customers to maintain their purchase options on properties. Option fees are billed monthly and are due in the following month. As of the date of issuance of this Form 10-Q, all option fee receivables as of June 30, 2025 have been collected. Based on the short duration of receivables and collection of the full balance, the Company did not record a credit allowance as of June 30, 2025.

Inventories

Inventories consist of homesite inventory and other related assets which include the Company’s development loans secured by property intended for single-family residential use and the related interest receivable which is paid-in-kind. Total inventories were $7.8 billion as of June 30, 2025, as compared to $5.5 billion as of December 31, 2024.

The Company accounts for homesite inventory in accordance with ASC 360, Property, Plant, and Equipment. The Company’s homesite inventory is stated at cost and is monitored for indicators of impairment. The Company reviews for indicators of impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. If any such indicators are identified, the inventory is written down to fair value. The cost of inventory includes land acquisition costs, land development costs, and other costs directly attributable to homesite development. Finished homesites are classified as inventories until they are sold to customers through option contracts with predetermined costs and takedown schedules. At the time of sale, the book value of the homesite is removed from the balance sheet.

The Company accounts for development loan receivables in accordance with ASC 310, Receivables. The associated interest earned on development loans is structured as paid-in-kind interest and is also recorded as inventory. Development loans are recorded at the cost to acquire the principal portion less principal payments. Such loans are used for residential homesite property development, in line with the Company’s operating model. The interest earned is similar in economic substance to monthly option payments on inventory owned by the Company.

The Company reviews development loans for impairment in accordance with ASC 326, Financial Instruments - Credit Losses. The Company has determined that any expected credit losses would be immaterial to the Company and did not record a credit allowance as of June 30, 2025.

The following roll forward summarizes the change in homesite inventory and other related assets from the Spin-Off through June 30, 2025:

 

 

 

Six months
ended,

 

(in thousands)

 

June 30
2025

 

Homesite inventory and other related assets

 

 

 

 

Beginning balance as of February 7, 2025 Spin-Off date

$

 

-

 

Homesite inventory contributed by Lennar in Spin-Off (1)

 

 

5,496,126

 

Land acquired from Rausch (2)

 

 

1,158,303

 

Investments in homesite inventory and other related assets (3)

 

 

2,699,890

 

Homesite inventory takedowns and other related paydowns (4)

 

 

(1,514,798

)

Interest receivable paid-in-kind (5)

 

 

 

5,657

 

Total homesite inventory and other related assets as of June 30, 2025

 

$

 

7,845,178

 

 

(1) Includes land contributed of $5.556 billion, less deferred tax asset adjustment of $59.8 million. Option deposits of $584.8 million for land

contributed are recorded as builder deposit liabilities in the unaudited condensed consolidated financial statements and when netted

with homesite inventory contributed by Lennar is $4.911 billion of net non-cash contributions from Lennar.

(2) Includes land acquired of $1.049 billion plus deferred tax liability adjustment of $116.7 million, less earnest deposits of $7.6 million.

(3) Includes land acquired of $1.885 billion, development costs of $524.0 million, and investment in development loans of $291.3 million.

Land additions include $522.8 million of land assets acquired in the New Home transaction.

(4) Includes homesite inventory takedowns of $1.509 billion and development loan paydowns of $5.2 million.

(5) Interest receivable for development loan that is paid-in-kind.

 

Deferred Financing Costs

The Company records deferred financing costs associated with the Revolving Credit Facility and DDTL Credit Facility and amortizes the costs to interest expense over the term of the financing. The Company records deferred financing costs in accordance with ASC 835, Interest. Financing costs for the Revolving Credit Facility are classified as other assets in the Company’s unaudited condensed consolidated balance sheets. As of June 30, 2025, deferred financing costs for the Revolving Credit Facility were $8.6 million, net of $1.3 million cumulative amortization recorded to interest expense. See Note 5. Other Assets. Financing costs for the DDTL Credit Facility are recorded as a direct deduction of the debt obligation and are classified as debt obligations with the outstanding loan balance in the Company’s unaudited condensed consolidated balance sheets. As of June 30, 2025, deferred financing costs for the DDTL Credit Facility were $13.8 million, net of $0.2 million cumulative amortization recorded to interest expense. See Note 7. Debt Obligations.

Builder Deposits

Builder deposits are option deposit payments received from customers under the Company’s option contracts. Builder deposits are contract liabilities for obligations to sell finished homesites to customers when the customers exercise their purchase options. Builder deposits are recorded as a liability at the time of customer payment. When the customers exercise their purchase option and acquire the finished homesite, the builder deposits are applied to the total takedown price owed by the customer. The liability is eliminated as takedown payments are made and recorded, along with the cash payment, as a reduction to the carrying amount of the inventory sold on the Company’s balance sheet. If customers do not exercise their purchase options, the deposit is forfeited as per the terms of the option contracts and recorded as income by the Company. The following is a roll forward of the builder deposit liability for the six months ended June 30, 2025, which reflects activity after the Spin-Off. There were no builder deposits for the Predecessor Millrose Business prior to the Spin-Off.

 

 

 

Six months
ended,

 

(in thousands)

 

June 30,
2025

 

Builder deposits

 

 

 

Beginning balance as of February 7, 2025 Spin-Off date

 

$

 

-

 

Builder deposits, Spin-Off

 

 

584,848

 

Builder deposits, Rausch land acquisition

 

 

 

90,264

 

Builder deposits, additions

 

 

 

201,055

 

Homesite takedowns, options exercised

 

 

 

(76,605

)

Total builder deposits as of June 30, 2025

 

$

 

799,562

 

 

Development Guarantee Holdback Liability

As of June 30, 2025, the Company recorded a holdback liability of $100 million related to a site improvement guarantee (the “Site Improvement Guarantee Amount”) owed to Rausch pursuant to terms of the transaction documents for the acquisition of the Rausch land assets by the Company (the “Transaction Documents”). The Site Improvement Guarantee Amount is due within ten business days of the date that is the later of (i) two years following February 10, 2025, and (ii) the date on which development of 50% of certain assets subject to the Transaction Documents (the “Guaranteed Assets”) has been completed. The amount to be paid to Rausch pursuant to the Transaction Documents is the Site Improvement Guarantee Amount, less the aggregate amount by which actual development costs exceed the budgeted development costs for the Guaranteed Assets or such lesser amounts as may be designated in writing by Rausch.

Revenue Recognition

The Company’s primary source of revenue is monthly option payments from Lennar and other customers in consideration for maintenance of a purchase option with respect to a property. The Company enters into option contracts that grant its customers the exclusive option to purchase finished homesites using predetermined costs and takedown schedules. In consideration for the grant of the purchase option, the Company receives payments which include monthly option payments to maintain the exclusive purchase option of a property.

Monthly option payments are recorded as option fee revenue over time on a monthly basis, for the period the performance obligation to provide the exclusive purchase option is satisfied. Monthly option payments are calculated by applying a fixed contractual rate per terms of the option contract to (i) total value of the property or acquisition cost of the property (ii) the amount of reimbursements made by the Company to customers for the cost of horizontal development of the property, less (x) the takedown prices paid by customers to the Company and (y) any other payments or reimbursements paid by customers to the Company (which for the Transferred Assets from Lennar excludes deposits). At the end of each month, the Company calculates and invoices the monthly option fee to its customers for the cash consideration it expects to receive per terms of the option contract. The monthly option fee is recorded as option fee revenue in the period earned with an associated option fee receivable recorded in the accompanying balance sheets until payments are received. Monthly option payments are due within the following calendar month and reflect the amounts billed.

The Company also derives other related income from interest on the outstanding loan balance of development loans secured by residential property. The Company records the revenue on a monthly basis as the interest is earned. All interest earned is paid-in-kind.

For the three months ended June 30, 2025 and June 30, 2024, option fee revenues and other related income were $149.0 million and $0, respectively, and were comprised of $141.1 million option fee revenues and $7.9 million other related income for development loans. For the six months ended June 30, 2025 and June 30, 2024, option fee revenues and other related income were $231.7 million and $0, respectively, and were comprised of $221.2 million option fee revenues and $10.5 million other related income for development loans. For the three and six months ended June 30, 2025, revenue earned from Lennar was in 95% and 97% of total option fee revenue, respectively, which is calculated per the terms of the Master Option Agreement.

Management Fee Expense

Pursuant to the Management Agreement, the Company pays KL a management fee in an amount equal to 1.25% per annum (0.3125% per quarter) of Tangible Assets, as defined in the Management Agreement (the “Management Fee”). The Management Fee is due and payable quarterly in advance as of the first day of each quarter and is reviewed by the Board.

Except for certain reimbursable expenses, all expenses incurred by Millrose and its subsidiaries in the ordinary course of business are covered under the Management Fee, including the costs of all administrative and operating functions and systems, office space and office equipment, public company expenses, expenses incurred in maintaining the Company’s REIT status, compensation and fees paid to officers, employees, directors, vendors, consultants, advisors, and other outside professionals. All employees are employed by KL (or an affiliate of KL), and their salaries are paid by KL (or an affiliate of KL); therefore the Company does not record personnel-related expenses, including salaries, benefits, and share-based compensation for any employees. All cash compensation and fees paid to the Board are also paid by KL and covered by the Management Fee. The Management Fee does not cover certain offering expenses, rating agency fees, fees incurred for services in connection with extraordinary litigation and mergers and acquisitions and other events outside the Company’s ordinary course of business, and, in certain circumstances, costs associated with the ownership and maintenance of land.

The Management Fee for the three months ended June 30, 2025 was $22.0 million, which covers services for the period from April 1, 2025 through June 30, 2025. The Management Fee for the six months ended June 30, 2025 was $34.1 million, which covers the period from the Spin-Off date of February 7, 2025 through June 30, 2025 based on the number of days that the Management Agreement was in effect.

Stock-Based Compensation

On December 17, 2024, the Company’s sole stockholder at the time and its Board adopted the Millrose Properties, Inc. 2024 Omnibus Incentive Plan (the “2024 Incentive Plan”). The 2024 Incentive Plan authorizes the award of stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights, and other stock-based awards to the Company’s employees, officers, directors, consultants and advisors. The Company accounts for RSU awards based on the grant date fair value and records the costs on a straight-line basis over the vesting terms as stock-based compensation expense in operating expenses and as an increase to additional paid in capital. See Note 11. Stock-Based Compensation for additional information.

Sales, General, and Administrative Expenses from Pre-Spin Period

Sales, general, and administrative expenses from pre-spin period are costs directly attributable to the Predecessor Millrose Business prior to the Spin-Off, and include pre-Spin-Off operating and employee compensation costs for dedicated regional and divisional land teams tasked with acquiring and developing the homesites Lennar transferred to Millrose in the Spin-Off. For the three and six months ended June 30, 2024, these expenses were allocated to the Predecessor Millrose Business on a specific identification basis or, when specific identification was not practicable, a proportional cost allocation method primarily based on headcount, usage, or other allocation methods depending on the nature of the services. For the six months ended June 30, 2025, these expenses included an allocation for the period from January 1, 2025 through February 7, 2025 calculated as (i) the average daily expense allocated and recorded for the twelve months ended December 31, 2024, applied to (ii) days in the first quarter 2025 prior to the Spin-Off. The Company believes the allocation is representative in all material respects to the costs that are directly attributable to the Predecessor Millrose Business for the period from January 1, 2025 through February 7, 2025. Sales, general, and administrative expenses from pre-spin period were $25.0 million for the period of January 1, 2025 through February 7, 2025. Sales, general, and administrative expenses for the three and six months ended June 30, 2024 were $59.8 million and $116.7 million, respectively.

Predecessor Millrose Business Income Taxes

The basis of accounting for income taxes for the Predecessor Millrose Business for the three and six months ended June 30, 2025 is unchanged from that disclosed in the notes to the combined financials statements included in Millrose’s Form 10-K for the year ended December 31, 2024. See Note 9. Income Taxes for additional information.

 

Income Taxes

The Company records income taxes using the asset and liability method set under ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as net operating loss and tax credit carryforwards as applicable. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the year in which the temporary differences are expected to be recovered or paid. The effect of the change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense.

Deferred tax assets are recognized to the extent that it is more likely than not that they will be realized. The Company reviews the potential realization of deferred tax assets and establishes a valuation allowance to reduce the deferred tax assets if it is determined more likely than not that some portion, or all, of the deferred tax assets will not be realized. The Company considers all available positive and negative evidence, including recent financial performance, actual earnings (losses), future reversals of existing temporary differences, projected future taxable income, and tax planning strategies.

Millrose intends to elect to be taxed as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ending December 31, 2025. As Millrose qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its net income that it distributes to its stockholders. To maintain its qualification as a REIT, Millrose will be required under the Code to distribute at least 90% of its REIT taxable income (without regard to the deduction for dividends paid and excluding net capital gains) to its stockholders and meet certain other requirements. If the Company fails to maintain its qualification as a REIT in any taxable year, it will then be subject to federal income taxes on its taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants Millrose relief under certain statutory provisions. Such an event could have a material adverse effect on its net income and net cash available for distribution to its members.

Millrose intends to elect for its wholly owned subsidiary Millrose Holdings and its indirectly wholly owned subsidiary RCH Holdings, Inc. to be taxable as taxable REIT subsidiaries (“TRSs”) and may form or acquire other direct or indirect wholly owned subsidiaries that will also elect to be taxed as TRSs in the future. TRSs are subject to taxation at regular corporate income tax rates.

See Note 9. Income Taxes for additional information.

Other Income (Expense)

The Company records revenue and expenses that are not directly related to the core operations of the Company as other income and expense. Other income (expense) for the three months ended June 30, 2025 was $9.3 million and included interest expense of $10.3 million for the Revolving Credit Facility and DDTL Credit Agreement, other expenses of $0.8 million, and interest income of $1.8 million related to cash balances. Other income (expense) for the six months ended June 30, 2025 was $10.7 million and included interest expense of $12.8 million for the Revolving Credit Facility and DDTL Credit Agreement, other expenses of $0.8 million, and interest income of $2.9 million related to cash balances.

Fair Value Measurements

Certain assets and liabilities are required to be reported at fair value under GAAP. The framework for determining fair value provided by GAAP prioritizes the inputs used in measuring fair value as follows:

•
Level 1: Fair value determined based on quoted prices in active markets for identical assets or liabilities.
•
Level 2: Fair value determined using significant other observable inputs.
•
Level 3: Fair value using significant other unobservable inputs.

As of June 30, 2025 and December 31, 2024, there were no assets or liabilities measured at fair value on a recurring basis. Cash, option fee receivables, and other current liabilities approximate their fair values due to their short-term nature. The Revolving Credit Facility and DDTL Credit Facility have a recorded value that approximates fair market value, as it bears interest at a rate that approximates fair market value. The Company’s inventory is stated at cost and is monitored for indicators of impairment. If any such indicators are identified, the inventory is written down to fair value. As of June 30, 2025 and December 31, 2024, no indicators of impairment were noted.

Recent Accounting Standards

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the Company’s fiscal year ending December 31, 2027. Early

adoption is permitted. The Company has elected not to early adopt and is currently evaluating the potential impact of ASU 2024-03 on its financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company does not expect it to have a material effect on its financial statements and disclosures.
v3.25.2
Business Transactions
 6 Months Ended
Jun. 30, 2025
Business Combinations [Abstract]  
Business Transactions

Note 3. Business Transactions

Spin-Off from Lennar

On February 7, 2025, the Company completed the Spin-Off from Lennar through a distribution of approximately 80% of Millrose’s common stock to Lennar stockholders. Lennar retained the remaining 20% of total outstanding shares of Millrose’s common stock. The Company assessed the Spin-Off as a nonreciprocal transfer of assets from Lennar to its stockholders and accounted for it under ASC 845, Nonmonetary Transactions. The Company further assessed the assets transferred from Lennar as meeting the definition of a business under ASC 805, Business Combinations. The Company concluded that the transferred assets and activities collectively constitute a business under ASC 805, as they include (i) substantive inputs (homesite inventory and cash), (ii) processes (Lennar services as defined under the Master Program Agreement), and (iii) the capability to produce outputs (option fee income). The Company recorded the assets acquired and liabilities assumed based on the carrying value of these items as they were reflected on Lennar’s books and records as of the closing of the transaction. The strategic rationale for the Spin-Off is documented in Note 1. Description of Business.

The following are the Spin-Off related transactions, and accounting adjustments that the Company made in its unaudited condensed consolidated financial statements after the Spin-Off:

•
The Spin-Off was completed through a distribution of 120,983,633 shares of Class A common stock of Millrose, par value $0.01 per share, and 11,819,811 shares of Class B common stock of Millrose, par value $0.01 per share, to Lennar common stockholders. The par value of $1.3 million for this common stock issued was recorded as stockholders’ equity in the Company’s unaudited condensed consolidated balance sheets;
•
Lennar retained 33,200,053 shares of Class A common stock of Millrose, par value $0.01 per share. The par value of $0.3 million for these shares issued was recorded as stockholders’ equity in the Company’s unaudited condensed consolidated balance sheets;
•
Millrose received contributions from Lennar of $5.5 billion in land assets, representing approximately 87,000 homesites, and $1.0 billion in cash, which included $584.8 million of cash deposits related to option contracts. The Company recorded (i) the cash and land contributions as cash and homesite inventory, respectively, and (ii) the cash deposits for option contracts as builder deposit liabilities, in its unaudited condensed consolidated balance sheets;
•
The Company recorded liabilities for (i) seller notes of $19.0 million, and (ii) prepaid due diligence costs of $77.9 million acquired as part of the Spin-Off, in its unaudited condensed consolidated balance sheets; and
•
The Company recorded a deferred tax asset of $59.8 million in its unaudited condensed consolidated balance sheets.

The total Spin-Off related stockholders equity for contributions from Lennar was approximately $5.9 billion, which the Company recorded as additional paid-in capital in its unaudited condensed consolidated balance sheets. The Predecessor Millrose Business equity at the Spin-Off date was $5.2 billion, which was reversed from the Company’s unaudited condensed consolidated balance sheets as of the Spin-Off date.

 

In connection with the Spin-Off, the Company incurred approximately $77.9 million of Spin-Off related costs, primarily consisting of accounting, legal, banking, and advisory fees. These costs were recorded as incurred as a reduction of equity in the unaudited condensed consolidated financial statements.

Acquisition of Rausch Land Assets

On February 10, 2025, the Company completed the acquisition of land from Rausch consisting of approximately 25,000 homesites for approximately $859 million in cash, net of option deposits funded by Lennar and other holdbacks. The Company funded the transactions using cash on hand. The Company assessed the acquired land assets as not meeting the definition of a business under ASC 805, Business Combinations and accounted for the transaction as an asset acquisition. Under ASC 805, Business Combinations, the cost of acquisition is allocated to the assets acquired on a relative fair value basis and no goodwill is recognized. Millrose did not incur transaction costs for the Rausch acquisition.

Land assets acquired were $1.158 billion, consisting of $858.9 million in cash, net of $90.3 million in option deposits, $100.0 million of development guarantee holdbacks, $116.7 million of deferred tax liabilities, and $7.6 million of earnest deposits.

The acquired land assets were recorded at the acquisition cost as homesite inventory in the Company’s unaudited condensed consolidated balance sheets. The Company recorded in its unaudited condensed consolidated balance sheets (i) the option deposits as builder deposit liabilities (ii) the development guarantee holdbacks as a holdback liability (iii) the deferred taxes as deferred tax liabilities, and (iv) earnest deposits as other assets.

New Home Company Transaction

On May 12, 2025, the Company entered into a commitment with New Home for Millrose to provide land banking capital of up to $700 million to support New Home’s acquisition of Landsea. On June 25, 2025, New Home completed the acquisition of Landsea and the Company funded land banking capital of $494.5 million at closing for the acquisition of a portfolio of homesites on which the Company executed option agreements with New Home. As a result of the transaction, the Company acquired $522.8 million in land assets, consisting of 4,186 homesites, for $494.5 million in cash, which is net of deposits of $28.3 million related to the option contracts. The Company assessed the acquired land assets as not meeting the definition of a business under ASC 805, Business Combinations and accounted for the transaction as an asset acquisition. Under ASC 805, Business Combinations, the cost of acquisition is allocated to the assets acquired on a relative fair value basis and no goodwill is recognized.

The acquired land assets were recorded at the acquisition cost as homesite inventory in the Company’s unaudited condensed consolidated balance sheets. The Company recorded in its unaudited condensed consolidated balance sheets the option deposits as builder deposit liabilities.

v3.25.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

Note 4. Related Party Transactions

Prior to the Spin-Off, the Company was a wholly owned subsidiary of Lennar. Following the Spin-Off, Millrose is an independent company of which 20% of its shares are owned by Lennar as of June 30, 2025. The primary transactions between the Company and Lennar consist of payments for (i) monthly option payments from Lennar in consideration for its purchase options on properties, (ii) option deposits paid by Lennar for the exclusive purchase option of a property, and (iii) cash payments from Lennar when homesite purchase options are exercised.

As of June 30, 2025, the Company recorded the following related to Lennar in the unaudited condensed consolidated financial statements:

 

•
Homesite inventory of $6.9 billion; and
•
Option deposit liabilities of $679.7 million.

For the three and six months ended June 30, 2025, the Company derived 95% and 97% of its total operating revenues, respectively, from Lennar. Given the concentration of revenue from Lennar, any significant adverse in Lennar’s financial condition could impact the Company’s operations and financial position. The Company believes it is not exposed to significant credit risk for Lennar as of the date of these unaudited consolidated condensed financial statements.

Following the Spin-Off, the Company is externally managed and advised by KL. The Company pays a Management Fee each quarter as described in Note 2. Basis of Presentation and Significant Accounting Policies, Management Fee. For the three and six months ended June 30, 2025, the management fee paid to KL was $22.0 million and $34.1 million, respectively. There were no amounts payable to or amounts receivable from KL as of June 30, 2025.
v3.25.2
Other Assets
 6 Months Ended
Jun. 30, 2025
Other Assets [Abstract]  
Other Assets

Note 5. Other Assets

Other assets as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

June 30,

 

 

December 31,

 

(in thousands)

 

2025

 

 

2024

 

Deferred financing costs (1)

 

$

 

8,577

 

 

$

 

-

 

Earnest deposits and prepaid due diligence costs (2)

 

 

5,828

 

 

 

-

 

Other assets (3)

 

 

 

853

 

 

 

 

-

 

Total other assets

 

$

 

15,258

 

 

$

 

-

 

(1) Deferred financing costs for Revolving Credit Facility.

(2) Includes net earnest deposits of $4.0 million and due diligence costs for Rausch land acquisition of $1.8 million.

(3) Includes prepaid taxes of $0.8 million and other prepaid expenses.

v3.25.2
Other Liabilities
 6 Months Ended
Jun. 30, 2025
Other Liabilities Disclosure [Abstract]  
Other Liabilities

Note 6. Other Liabilities

Other liabilities as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

June 30,

 

 

December 31,

 

(in thousands)

 

2025

 

 

2024

 

Dividend payable (1)

 

$

 

114,542

 

 

$

 

-

 

Seller notes payable (2)

 

 

 

13,000

 

 

 

 

-

 

Accrued interest payable (3)

 

 

 

2,571

 

 

 

 

-

 

Income tax payable (4)

 

 

 

1,397

 

 

 

 

-

 

Other accrued liabilities

 

 

 

250

 

 

 

 

-

 

Total other liabilities

 

$

 

131,760

 

 

$

 

-

 

(1) Payable for dividend declared by the Company on June 16, 2025, and paid on July 15, 2025. See Note 10.

(2) Loan payable to lender specific to a community acquired from Lennar.

(3) Accrued interest payable for Revolving Credit Facility of $1.4 million and DDTL Credit Agreement of $1.2 million.

(4) State income tax payable.

v3.25.2
Debt Obligations
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt Obligations

Note 7. Debt Obligations

Revolving Credit Facility

On February 7, 2025, the Company entered into a credit agreement (the “Revolving Credit Agreement”) with a consortium of lenders party thereto JPMorgan Chase Bank, N.A., as administrative agent for the lenders (the “Revolver Agent”). The Revolving Credit Agreement provides for a revolving credit facility (the “Revolving Credit Facility”) with commitments in an aggregate amount of $1.335 billion, of which $950 million has been borrowed, and $925 million has been repaid, as of June 30, 2025. Availability under the Revolving Credit Agreement is subject to a borrowing base updated quarterly (or, at the Company’s option, monthly), which is calculated by reference to the value of certain real property assets, with advance rates that vary by asset category, and unrestricted cash and cash equivalents, with adjustments as specified in the Revolving Credit Agreement. The Revolving Credit Facility may be used by the Company to borrow loans or obtain standby letters of credit.

Loans under the Revolving Credit Agreement bear interest at the Adjusted Term SOFR Rate (as defined in the Revolving Credit Agreement) plus an applicable margin at the per annum rate of (i) 2.00%, if the Leverage Ratio (as defined in the Revolving Credit Agreement) is less than or equal to 0.30 to 1.00, (ii) 2.25% if Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (iii) 2.50% if the Leverage Ratio is greater than 0.40 to 1.00. At the Company’s option, loans may instead bear interest at the Alternate Base Rate (as defined in the Revolving Credit Agreement) plus an applicable margin at the per annum rate of 1.00%, 1.25% or 1.50%, depending upon the Leverage Ratio.

Obligations under the Revolving Credit Agreement are secured by pledges by Millrose of (i) the promissory note of approximately $4.8 billion issued by Millrose Holdings and certain of its subsidiaries to Millrose (the “Promissory Note”) as part of the recapitalization of Millrose Holdings prior to the Spin-Off, and (ii) the equity interests of Millrose Holdings. In addition, the Revolving Credit Agreement requires the Company to pledge (i) certain future promissory notes similar to the Promissory Note that Millrose may enter into with other subsidiaries and (ii) the equity interests of any other subsidiaries whose equity interests are not pledged for the benefit of the Promissory Note or any other similar promissory note or notes. Pursuant to an intercreditor agreement (the “ICA”), dated as of June 24, 2025, by and among the DDTL Administrative Agent (as defined below) and the Revolver Agent, the DDTL Administrative Agent and the Revolver Agent agree that certain liens on Shared Collateral (as defined in the ICA) securing the DDTL Credit Agreement (as defined below) and the Revolving Credit Agreement shall be of equal priority, and certain distributions made in respect of Shared Collateral shall be shared on a ratable basis.

As of June 30, 2025, there were no guarantors under the Revolving Credit Agreement. The Company may elect to join certain of our subsidiaries to the Revolving Credit Agreement as guarantors from time to time, and in certain circumstances, the Revolving Credit Agreement requires the Company to cause certain other subsidiaries that are not Taxable REIT Subsidiaries (as defined in the Revolving Credit Agreement) to become guarantors.

The Revolving Credit Agreement includes affirmative and negative covenants applicable to the Company and its subsidiaries, including limitations regarding liens, investments, asset sales, transactions with affiliates, restrictive agreements, mergers and other fundamental changes, permitted lines of business, financial contracts, and designation of unrestricted subsidiaries. The Revolving Credit Agreement contains financial covenants, tested quarterly, consisting of a maximum Leverage Ratio, a minimum interest coverage ratio, and a minimum tangible net worth. The Revolving Credit Agreement also requires the Company to maintain its status as a REIT. As of June 30, 2025, the Company was in compliance with all covenants under the Revolving Credit Agreement.

The Revolving Credit Agreement contains events of default, including if KL shall cease to be the Company’s manager and a replacement manager reasonably acceptable to the Required Lenders (as defined in the Revolving Credit Agreement) is not appointed within 90 days.

The Revolving Credit Agreement is scheduled to mature on February 7, 2028 (the “ Revolving Maturity Date”). Principal amounts and other obligations outstanding under the Revolving Credit Facility are due in full on the Revolving Maturity Date. Interest on each drawdown is due quarterly for loans bearing interest at the Alternate Base Rate and on the last day of the applicable interest payment date for loans bearing interest at the Adjusted Term SOFR Rate.

The outstanding principal balance at June 30, 2025 was $25.0 million which the Company classified as debt obligations in its unaudited condensed consolidated balance sheets. Interest expense for the three months ended June 30, 2025 was $8.9 million, which included $7.8 million of interest and $1.1 million of amortized deferred financing fees. Interest expense for the six months ended June 30, 2025 was $11.4 million, which included $10.1 million of interest and $1.3 million of amortized deferred financing fees. Interest payments for the three and six months ended June 30, 2025 were $8.2 million and $8.7 million, respectively. The outstanding interest payable at June 30, 2025 was $1.4 million and is classified in other liabilities in the Company’s unaudited condensed consolidated balance sheets.

Delayed Draw Term Loan Facility

On June 24, 2025, the Company entered into a credit agreement (the “DDTL Credit Agreement”) with the lenders party thereto and Goldman Sachs Bank USA as administrative agent for the lenders (in such capacity, the “DDTL Administrative Agent”). The DDTL Credit Agreement provides for a delayed draw term loan facility (the “DDTL Facility”) with commitments in an aggregate amount of $1.0 billion, of which $1.0 billion has been borrowed as of June 30, 2025. Proceeds of the Acquisition Tranche Loans (as defined in the DDTL Credit Agreement) were used to finance the previously announced acquisition of a portfolio of homesites on which the Company executed option agreements with New Home to support New Home’s acquisition of Landsea, which closed on June 25, 2025 (as further defined in the DDTL Credit Agreement, the “Specified Acquisition”), and the proceeds of any General Tranche Loans (as defined in the DDTL Credit Agreement) may be used for general corporate purposes (which may include, without limitation, to pay outstanding obligations under the Revolving Credit Facility).

Loans under the DDTL Credit Agreement bear interest at the Adjusted Term SOFR Rate (as defined in the DDTL Credit Agreement, the “DDTL Adjusted Term SOFR Rate”) plus an applicable margin at the per annum rate of: (i) from (and including) the initial draw date through (and including) 89 days after the initial draw date (a) 2.00% if the Leverage Ratio (as defined in the DDTL Credit Agreement, the “DDTL Leverage Ratio”) is less than or equal to 0.30 to 1.00, (b) 2.25% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 2.50% if the DDTL Leverage Ratio is greater than 0.40 to 1.00; (ii) from (and including) 90 days after the initial draw date through (and including) 179 days after the initial draw date (a) 2.25% if the DDTL Leverage Ratio is less than or equal to 0.30 to 1.00, (b) 2.50% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 2.75% if the DDTL Leverage Ratio is greater than 0.40 to 1.00; (iii) from (and including) 180 days after the initial draw date through (and including) 269 days after the initial draw date (a) 2.50% if the DDTL Leverage Ratio is less than or equal to 0.30 to 1.00, (b) 2.75% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 3.00% if the DDTL Leverage Ratio is greater than 0.40 to 1.00; and (iv) from (and including) 270 days after the initial draw date and thereafter (a) 2.75% if the DDTL Leverage Ratio is less than or equal to 0.30 to 1.00, (b) 3.00% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 3.25% if the DDTL Leverage Ratio is greater than 0.40 to 1.00. At the Company’s option, loans may instead bear interest at the Alternate Base Rate (as defined in the DDTL Credit Agreement, the “DDTL Alternate Base Rate”) plus an applicable margin at the per annum rate of 1.00% lower than the applicable margin for DDTL Adjusted Term SOFR Rate loans set forth above, in each case based upon the DDTL Leverage Ratio and the time after initial draw.

Obligations under the DDTL Credit Agreement are secured by pledges by the Company of (i) the Promissory Note, and (ii) the equity interests of Millrose Holdings. In addition, the DDTL Credit Agreement requires the Company to pledge (i) certain future promissory notes similar to the Promissory Note that Millrose may enter into with other subsidiaries and (ii) the equity interests of any other subsidiaries whose equity interests are not pledged for the benefit of the Promissory Note or any other similar promissory note or notes. Pursuant to the ICA, the DDTL Administrative Agent and the Revolver Agent agree that certain liens on Shared Collateral (as defined in the ICA) securing the DDTL Credit Agreement and the Revolving Credit Agreement shall be of equal priority, and certain distributions made in respect of Shared Collateral shall be shared on a ratable basis.

As of June 30, 2025, there were no guarantors under the DDTL Credit Agreement. The Company may elect to join certain of our subsidiaries to the DDTL Credit Agreement as guarantors from time to time and, in certain circumstances, the DDTL Credit Agreement requires the Company to cause certain other subsidiaries of the Company that are not Taxable REIT Subsidiaries (as defined in the DDTL Credit Agreement) to become guarantors.

The DDTL Credit Agreement includes mandatory prepayments applicable to the Company and its subsidiaries in the event net cash proceeds are received from certain debt issuances, certain issuances of capital stock, and certain non-ordinary course dispositions of assets.

The DDTL Credit Agreement includes affirmative and negative covenants applicable to the Company and its subsidiaries, including limitations regarding liens, investments, asset sales, transactions with affiliates, restrictive agreements, mergers and other fundamental changes, permitted lines of business, financial contracts, and designation of unrestricted subsidiaries. The DDTL Credit Agreement contains financial covenants, tested quarterly, consisting of a maximum DDTL Leverage Ratio, a minimum interest coverage ratio, and a minimum tangible net worth. The DDTL Credit Agreement also requires the Company to maintain its status as a REIT. As of June 30, 2025, the Company was in compliance with all covenants under the DDTL Credit Agreement.

The DDTL Credit Agreement contains events of default, including if KL shall cease to be the Company’s manager and a replacement manager reasonably acceptable to the Required Lenders (as defined in the DDTL Credit Agreement) is not appointed within 90 days.

The DDTL Credit Agreement is scheduled to mature on June 23, 2026 (the “DDTL Maturity Date”). Principal amounts and other obligations outstanding under the DDTL Credit Agreement are due in full on the DDTL Maturity Date. Interest on each drawdown is due quarterly for loans bearing interest at the Alternate Base Rate and on the last day of the applicable interest payment date for loans bearing interest at the Adjusted Term SOFR Rate.

The Company records the outstanding balance, net of financing costs which are recorded as a direct reduction of the debt obligation, as debt obligations in its unaudited condensed consolidated balance sheets. The debt obligation at June 30, 2025 was $986.1 million, which includes the outstanding balance of $1.0 billion and deferred financing costs of $13.8 million. Interest expense for the three and six months ended June 30, 2025 was $1.4 million, which included $1.2 million of interest and $0.2 million of amortized deferred financing fees. There were no interest payments for the three and six months ended June 30, 2025. The outstanding interest payable at June 30, 2025 was $1.2 million and is classified in other liabilities in the Company’s unaudited condensed consolidated balance sheets.

Predecessor Millrose Business Debt

The Predecessor Millrose Business’s debt as of June 30, 2024 consisted of promissory notes for the acquisition of land and community development district bonds. There was no outstanding Predecessor Millrose Business debt recorded on the Company’s unaudited condensed consolidated financial statements as of June 30, 2025.
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 8. Commitments and Contingencies

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. Legal costs incurred in connection with loss contingencies, if any, are expensed as incurred. There is no material litigation nor, to management’s knowledge, any material litigation currently threatened against the Company. As of June 30, 2025, the Company had $5.7 billion of future land development commitments associated with its option contracts with Lennar and $0.6 billion of future land development commitments associated with its option contracts with other customers.
v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 9. Income Taxes

The provision for income taxes was as follows for the three and six months ended June 30, 2025 and June 2024:

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

June 30,
2025

 

 

June 30,
2024

 

 

June 30,
2025

 

 

June 30,
2024

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

 

4,013

 

 

$

 

-

 

 

$

 

7,662

 

 

$

 

-

 

State

 

 

 

731

 

 

 

 

-

 

 

 

 

1,397

 

 

 

 

-

 

Total current income tax expense

 

 

 

4,744

 

 

 

 

-

 

 

 

 

9,059

 

 

 

 

-

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

 

20

 

 

 

 

-

 

 

 

 

75

 

 

 

 

-

 

State

 

 

4

 

 

 

-

 

 

 

14

 

 

 

-

 

Total deferred income tax expense

 

 

 

24

 

 

 

 

-

 

 

 

 

89

 

 

 

 

-

 

Total income tax expense

 

$

 

4,768

 

 

$

 

-

 

 

$

 

9,148

 

 

$

 

-

 

The effective tax rate for the three and six months ended June 30, 2025 was 24.8%, as compared to an effective tax rate of zero for the three months and six months ended June 30, 2024. Taxable income generated from certain activities that do not qualify under REIT provisions is earned through our TRSs and is subject to U.S. federal, state, and local income and franchise taxation. A reconciliation of the TRS statutory rate and effective tax rates was as follows:

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

June 30,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Statutory rate

 

 

 

21.0

 

%

 

 

 

-

 

%

 

 

 

21.0

 

%

 

 

 

-

 

%

State income rates, net of federal income tax benefit

 

 

 

3.8

 

%

 

 

 

-

 

%

 

 

 

3.8

 

%

 

 

 

-

 

%

Valuation allowance

 

 

 

-

 

%

 

 

 

-

 

%

 

 

 

-

 

%

 

 

 

-

 

%

Effective tax rate

 

 

 

24.8

 

%

 

 

 

-

 

%

 

 

 

24.8

 

%

 

 

 

-

 

%

 

Deferred income taxes represent the net tax effects of temporary differences between the financial statement carrying amounts and the corresponding tax basis of certain assets and liabilities related to the initial land basis spun off from Lennar and the acquisition of Rausch land assets. These differences result in the recognition of a deferred tax liability.

The Company’s deferred tax liabilities as of June 30, 2025 and December 31, 2024 were as follows:

 

(in thousands)

 

June 30,
2025

 

 

December 31,
2024

 

Deferred tax liabilities

 

 

 

 

 

 

 

Land basis adjustments, Spin-Off and acquired Rausch land assets

 

$

 

56,824

 

 

$

 

-

 

Homesite takedown adjustments

 

 

89

 

 

 

-

 

Total deferred tax liabilities

 

$

 

56,913

 

 

$

 

-

 

 

Millrose for the three and six months ended June 30, 2025

For the three and six months ended June 30, 2025, the effective tax rate included the income tax expense the Company incurred on the option fee income less any related expenses. The change in the effective tax rate as compared to the three and six months ended June 30, 2024 was primarily due to a valuation allowance in the first and second quarter of 2024 for the cumulative loss position of the carve-out Predecessor Millrose Business.

Predecessor Millrose Business for the three and six months ended June 30, 2024

The Predecessor Millrose Business did not have income taxes during the three and six months ended June 30, 2024 due to offsetting changes in valuation allowance against its deferred taxes that reduced income taxes and effective tax rate to zero.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of June, 2024 the Predecessor Millrose Business had federal and state income tax net operating loss carryforwards related to operations that may be carried forward from 10 to 20 years, or indefinitely, depending on the tax jurisdiction.

A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required if, based on the available evidence, it is more likely than not that such assets will not be realized. Accordingly, the need to establish valuation allowances was assessed by the Predecessor Millrose Business based on the consideration of all available positive and negative evidence using a “more- likely-than-not” standard with respect to whether deferred tax assets will be realized. This assessment considered, among other matters, the nature, frequency and severity of current and cumulative losses, actual earnings, forecasts of future profitability, the duration of statutory carryforward periods, the Predecessor Millrose Business’s experience with loss carryforwards not expiring unused and tax planning alternatives. Based on this assessment, the Predecessor Millrose Business determined that it will not be able to realize its net operating loss carryforwards and recorded a valuation allowance against its deferred tax asset, which also reduced income taxes and effective tax rate to zero.

As of June 30, 2024, the Predecessor Millrose Business had no gross unrecognized tax benefits.

v3.25.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2025
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 10. Stockholders’ Equity

Authorized Capital Stock

As of June 30, 2025, Millrose had, under its Charter, authorized capital stock of (i) 450,000,000 shares of common stock, par value $0.01 per share, consisting of 275,000,000 shares of Class A common stock and 175,000,000 shares of Class B common stock, and (ii) 50,000,000 shares of preferred stock, par value $0.01 per share.

Common Stock

The following transactions related to our common stock occurred in connection with the Spin-Off:

•
120,983,633 shares of Millrose Class A common stock were distributed to holders of Lennar common stock as of the close of business January 21, 2025;
•
11,819,811 shares of Millrose Class B common stock were distributed to holders of Lennar common stock as of the close of business January 21, 2025;
•
Lennar retained 33,200,053 shares of Millrose’s Class A common stock, representing approximately 20% of Millrose’s outstanding common stock.

As of June 30, 2025, Millrose had outstanding an aggregate of 166,003,497 shares of common stock.

Preferred Stock

As of June 30, 2025 there were no shares of preferred stock outstanding.

Dividends

On April 15, 2025, the Company paid a dividend of $0.38 to holders of its Class A common stock and Class B common stock as of the close of business on April 4, 2025, as declared by the Board on March 17, 2025.

On June 16, 2025, the Company declared a dividend of $0.69 to Class A common stockholders and Class B common stockholders of record as of the close of business July 3, 2025. This dividend was paid on July 15, 2025. The Company recorded a dividend payable of $114.5 million in other liabilities in the Company’s condensed consolidated balance sheets as of June 30, 2025.

Securities Authorized for Issuance Under Equity Compensation Plans

As of June 30, 2025, 28,300 RSUs had been granted pursuant to the 2024 Incentive Plan. No other securities had been issued or granted pursuant to the 2024 Incentive Plan. See Note 11. Share Based Compensation for additional information.

Stock Repurchases

There were no stock repurchases of Millrose’s common stock during the quarter ended June 30, 2025.

Additional Paid In Capital

As of June 30, 2025, the Company’s additional paid in capital was approximately $5.9 billion, which primarily relates to the cash and land contributed by Lennar at the Spin-Off.
v3.25.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

Note 11. Stock-Based Compensation

On April 3, 2025, the Compensation Committee of the Board granted 5,660 RSUs to each member of the Board under the 2024 Incentive Plan, which shall be settled in shares of the Company’s Class A common stock. Each RSU award had a grant date fair value of $150,000. Millrose granted 28,300 RSUs in the aggregate, and such RSUs vest on the earlier of (x) the first anniversary of the grant date and (y) the date of Millrose’s annual stockholder meeting that next follows the grant date. The Company records the RSU award costs on a straight-line basis over the one-year vesting period as stock-based compensation expense in operating expenses. There were no other awards granted as of June 30, 2025.

The stock-based compensation expense for the three and six month periods ended June 30, 2025 was approximately $0.2 million. As of June 30, 2024, there was $0.6 million of unrecognized stock-based compensation expense related to unvested RSU awards under the 2024 Incentive Plan. There were no forfeited or vested awards as of June 30, 2025. Sales, general, and administrative expenses for the Predecessor Millrose Business include $1.7 million and $8.9 million of stock-based compensation expense for the three and six months ended June 30, 2025, respectively. Stock-based compensation was allocated to the Predecessor Millrose Business on a specific identification basis or using a proportional cost allocation method, as applicable, as disclosed in the Company’s Form 10-K for the year ended December 31, 2024.

v3.25.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Earnings Per Share

Note 12. Earnings Per Share

The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share. The Company has elected to use the number of shares outstanding as of the day of the Spin-Off, as the denominator number of shares for the period prior to the Spin-Off; an acceptable approach under ASC 260 that spun-off entities may use when the spin-off occurs within the financial reporting period. Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted number of commons shares outstanding for the period. The outstanding shares at Spin-Off were unchanged as of June 30, 2025. Diluted earnings per share reflects the potential dilution that could occur if the RSUs granted to each member of the Board vest and resulted in the issuance of common stock. For the three and six months ended June 30, 2025, basic and

diluted earnings per share is calculated by dividing net income attributed to common stockholders after the Spin-Off by the basic and diluted weighted shares outstanding for the period. The diluted earnings per share for the RSUs is calculated using the grant date of April 3, 2025. The pre-spin net loss of $25.0 million for the period from January 1, 2025 through February 7, 2025 is added back to net income for purposes of earnings per share. For the three and six months ended June 30, 2024, Lennar was the sole shareholder.

Basic and diluted earnings per share was calculated as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,
2025

 

 

June 30,
2024

 

 

June 30,
2025

 

 

June 30,
2024

 

(Dollars in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

 

112,760

 

 

$

 

(59,761

)

 

$

 

152,566

 

 

$

 

(116,748

)

Adjustment for expenses from pre-spin periods

 

 

 

-

 

 

 

 

-

 

 

 

 

24,960

 

 

 

 

-

 

Numerator for basic and diluted earnings per share

 

$

 

112,760

 

 

$

 

(59,761

)

 

$

 

177,526

 

 

$

 

(116,748

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic (1)

 

 

166,003,497

 

 

 

-

 

 

 

 

166,003,497

 

 

 

-

 

Basic earnings per share

 

$

 

0.68

 

 

$

 

-

 

 

$

 

1.07

 

 

$

 

-

 

Weighted average common shares outstanding - diluted (2)

 

 

166,031,175

 

 

 

-

 

 

 

 

166,020,988

 

 

 

-

 

Diluted earnings per share

 

$

 

0.68

 

 

$

 

-

 

 

$

 

1.07

 

 

$

 

-

 

 

(1) Basic weighted average common shares for the three and six months ended June 30, 2025 represent the common shares issued at the Spin-Off, which are the common shares outstanding as of June 30, 2025. No publicly-listed shares were outstanding as of June 30, 2024.

(2) Diluted weighted shares for the three and six months ended June 30, 2025 include 28,300 RSUs granted in the aggregate to each member of tbe Board under the 2024 Incentive Plan on April 3, 2025. The RSUs were unvested as of June 30, 2025.

v3.25.2
Subsequent Events
 6 Months Ended
Jun. 30, 2025
Subsequent Events [Abstract]  
Subsequent Events

Note 13. Subsequent Events

The Company has evaluated subsequent events through the filing of this Form 10-Q and determined that there have been no events that have occurred that require adjustment or disclosure in the financial statements.
v3.25.2
Basis of Presentation and Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, certain footnotes or other financial information normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the combined financial statements in the Company’s Form 10-K for the year ended December 31, 2024.

The unaudited condensed consolidated financial statements include the financial statements of the Predecessor Millrose Business prior to the Spin-Off, which are derived from the accounting records of Lennar. The Predecessor financial statements represent a combination of entities under common control that have been prepared under the legal entity method of carving out financial statements and have been prepared based on the assets transferred to Millrose in the Spin-Off. The Predecessor financial statements reflect the expenses directly attributable to the Predecessor Millrose Business, and, land inventory assets and liabilities included in the Spin-Off, at Lennar’s historical basis. The financial statements of the Predecessor Millrose Business may not be indicative of Millrose’s future performance as an independent, publicly traded company following the Spin-Off and do not necessarily reflect what the financial position, results of operations, and cash flows would have been had Millrose operated as a separate, publicly traded company during the periods presented.

The basis of accounting of the Predecessor Millrose Business for the three and six months ended June 30, 2024 is unchanged from that included in the notes to the combined financials statements in Form 10-K for the year ended December 31, 2024, which includes an allocation of all costs directly attributable to the Predecessor Millrose Business. The basis of accounting for the Predecessor Millrose Business for the six months ended June 30, 2025 includes an allocation of the average daily expense in 2024, using this allocation method, to the period of January 1, 2025 through February 7, 2025. See “ Sales, General, and Administrative Expenses from Pre-Spin Period” in this Note 2 below for more information.

The unaudited condensed consolidated financial statements after the Spin-Off include the accounts of the Company and its subsidiaries, including Millrose Holdings and other subsidiaries. The basis of presentation of significant accounting policies documented below includes that of Millrose after the Spin-Off as of June 30, 2025.

All intercompany balances and transactions have been eliminated in consolidation.

Segment and Geographic Information

Segment and Geographic Information

Prior to the Spin-Off, the Predecessor Millrose Business did not operate as a separate reportable segment. Subsequent to the Spin-Off, the Company operates and derives revenue from its portfolio of homesite inventory through option contracts. As of June 30, 2025, the Company’s operations are conducted in the United States with properties geographically located across 29 states. The Chief Executive Officer serves as the Company’s Chief Operating Decision Maker (the “CODM”) and evaluates performance and resource allocation on a portfolio basis. Additionally, the Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company has a single operating and reportable segment (the “Reporting Segment”) for disclosure purposes in accordance with GAAP.

Net income attributable to Millrose, as presented on the Company’s unaudited condensed consolidated statements of operations, is a metric utilized by the CODM to assess the Reporting Segment’s performance and allocate resources. Total assets, as presented on the Company’s unaudited condensed consolidated balance sheets, is used to measure the Reporting Segment’s assets.

The Company will continue to monitor operations on an ongoing basis for any changes that may impact segment reporting as required under ASC 280, Segment Reporting.

Use of Estimates and Assumptions

Use of Estimates and Assumptions

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Cash

Cash

The Company considers all investments with an original maturity of three months or less to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates their fair values due to the short maturity period. As of June 30, 2025, cash was $66.6 million and consisted of highly liquid deposit accounts and the Company held no cash equivalents. The Predecessor Millrose Business held no cash and cash equivalents at December 31, 2024.
Option Fee Receivables

Option Fee Receivables

Option fee receivables are stated at their net realizable value. The Company assesses for potential credit losses based on historical experience, creditworthiness of customers, and current economic conditions relevant to the Company. Option fee receivables were $46.6 million as of June 30, 2025 as compared to $0 as of December 31, 2024.

Option fee receivables consist of amounts due from customers to maintain their purchase options on properties. Option fees are billed monthly and are due in the following month. As of the date of issuance of this Form 10-Q, all option fee receivables as of June 30, 2025 have been collected. Based on the short duration of receivables and collection of the full balance, the Company did not record a credit allowance as of June 30, 2025.

Inventories

Inventories

Inventories consist of homesite inventory and other related assets which include the Company’s development loans secured by property intended for single-family residential use and the related interest receivable which is paid-in-kind. Total inventories were $7.8 billion as of June 30, 2025, as compared to $5.5 billion as of December 31, 2024.

The Company accounts for homesite inventory in accordance with ASC 360, Property, Plant, and Equipment. The Company’s homesite inventory is stated at cost and is monitored for indicators of impairment. The Company reviews for indicators of impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. If any such indicators are identified, the inventory is written down to fair value. The cost of inventory includes land acquisition costs, land development costs, and other costs directly attributable to homesite development. Finished homesites are classified as inventories until they are sold to customers through option contracts with predetermined costs and takedown schedules. At the time of sale, the book value of the homesite is removed from the balance sheet.

The Company accounts for development loan receivables in accordance with ASC 310, Receivables. The associated interest earned on development loans is structured as paid-in-kind interest and is also recorded as inventory. Development loans are recorded at the cost to acquire the principal portion less principal payments. Such loans are used for residential homesite property development, in line with the Company’s operating model. The interest earned is similar in economic substance to monthly option payments on inventory owned by the Company.

The Company reviews development loans for impairment in accordance with ASC 326, Financial Instruments - Credit Losses. The Company has determined that any expected credit losses would be immaterial to the Company and did not record a credit allowance as of June 30, 2025.

The following roll forward summarizes the change in homesite inventory and other related assets from the Spin-Off through June 30, 2025:

 

 

 

Six months
ended,

 

(in thousands)

 

June 30
2025

 

Homesite inventory and other related assets

 

 

 

 

Beginning balance as of February 7, 2025 Spin-Off date

$

 

-

 

Homesite inventory contributed by Lennar in Spin-Off (1)

 

 

5,496,126

 

Land acquired from Rausch (2)

 

 

1,158,303

 

Investments in homesite inventory and other related assets (3)

 

 

2,699,890

 

Homesite inventory takedowns and other related paydowns (4)

 

 

(1,514,798

)

Interest receivable paid-in-kind (5)

 

 

 

5,657

 

Total homesite inventory and other related assets as of June 30, 2025

 

$

 

7,845,178

 

 

(1) Includes land contributed of $5.556 billion, less deferred tax asset adjustment of $59.8 million. Option deposits of $584.8 million for land

contributed are recorded as builder deposit liabilities in the unaudited condensed consolidated financial statements and when netted

with homesite inventory contributed by Lennar is $4.911 billion of net non-cash contributions from Lennar.

(2) Includes land acquired of $1.049 billion plus deferred tax liability adjustment of $116.7 million, less earnest deposits of $7.6 million.

(3) Includes land acquired of $1.885 billion, development costs of $524.0 million, and investment in development loans of $291.3 million.

Land additions include $522.8 million of land assets acquired in the New Home transaction.

(4) Includes homesite inventory takedowns of $1.509 billion and development loan paydowns of $5.2 million.

(5) Interest receivable for development loan that is paid-in-kind.

Deferred Financing Costs

Deferred Financing Costs

The Company records deferred financing costs associated with the Revolving Credit Facility and DDTL Credit Facility and amortizes the costs to interest expense over the term of the financing. The Company records deferred financing costs in accordance with ASC 835, Interest. Financing costs for the Revolving Credit Facility are classified as other assets in the Company’s unaudited condensed consolidated balance sheets. As of June 30, 2025, deferred financing costs for the Revolving Credit Facility were $8.6 million, net of $1.3 million cumulative amortization recorded to interest expense. See Note 5. Other Assets. Financing costs for the DDTL Credit Facility are recorded as a direct deduction of the debt obligation and are classified as debt obligations with the outstanding loan balance in the Company’s unaudited condensed consolidated balance sheets. As of June 30, 2025, deferred financing costs for the DDTL Credit Facility were $13.8 million, net of $0.2 million cumulative amortization recorded to interest expense. See Note 7. Debt Obligations.

Builder Deposits

Builder Deposits

Builder deposits are option deposit payments received from customers under the Company’s option contracts. Builder deposits are contract liabilities for obligations to sell finished homesites to customers when the customers exercise their purchase options. Builder deposits are recorded as a liability at the time of customer payment. When the customers exercise their purchase option and acquire the finished homesite, the builder deposits are applied to the total takedown price owed by the customer. The liability is eliminated as takedown payments are made and recorded, along with the cash payment, as a reduction to the carrying amount of the inventory sold on the Company’s balance sheet. If customers do not exercise their purchase options, the deposit is forfeited as per the terms of the option contracts and recorded as income by the Company. The following is a roll forward of the builder deposit liability for the six months ended June 30, 2025, which reflects activity after the Spin-Off. There were no builder deposits for the Predecessor Millrose Business prior to the Spin-Off.

 

 

 

Six months
ended,

 

(in thousands)

 

June 30,
2025

 

Builder deposits

 

 

 

Beginning balance as of February 7, 2025 Spin-Off date

 

$

 

-

 

Builder deposits, Spin-Off

 

 

584,848

 

Builder deposits, Rausch land acquisition

 

 

 

90,264

 

Builder deposits, additions

 

 

 

201,055

 

Homesite takedowns, options exercised

 

 

 

(76,605

)

Total builder deposits as of June 30, 2025

 

$

 

799,562

 
Development Guarantee Holdback Liability

Development Guarantee Holdback Liability

As of June 30, 2025, the Company recorded a holdback liability of $100 million related to a site improvement guarantee (the “Site Improvement Guarantee Amount”) owed to Rausch pursuant to terms of the transaction documents for the acquisition of the Rausch land assets by the Company (the “Transaction Documents”). The Site Improvement Guarantee Amount is due within ten business days of the date that is the later of (i) two years following February 10, 2025, and (ii) the date on which development of 50% of certain assets subject to the Transaction Documents (the “Guaranteed Assets”) has been completed. The amount to be paid to Rausch pursuant to the Transaction Documents is the Site Improvement Guarantee Amount, less the aggregate amount by which actual development costs exceed the budgeted development costs for the Guaranteed Assets or such lesser amounts as may be designated in writing by Rausch.

Revenue Recognition

Revenue Recognition

The Company’s primary source of revenue is monthly option payments from Lennar and other customers in consideration for maintenance of a purchase option with respect to a property. The Company enters into option contracts that grant its customers the exclusive option to purchase finished homesites using predetermined costs and takedown schedules. In consideration for the grant of the purchase option, the Company receives payments which include monthly option payments to maintain the exclusive purchase option of a property.

Monthly option payments are recorded as option fee revenue over time on a monthly basis, for the period the performance obligation to provide the exclusive purchase option is satisfied. Monthly option payments are calculated by applying a fixed contractual rate per terms of the option contract to (i) total value of the property or acquisition cost of the property (ii) the amount of reimbursements made by the Company to customers for the cost of horizontal development of the property, less (x) the takedown prices paid by customers to the Company and (y) any other payments or reimbursements paid by customers to the Company (which for the Transferred Assets from Lennar excludes deposits). At the end of each month, the Company calculates and invoices the monthly option fee to its customers for the cash consideration it expects to receive per terms of the option contract. The monthly option fee is recorded as option fee revenue in the period earned with an associated option fee receivable recorded in the accompanying balance sheets until payments are received. Monthly option payments are due within the following calendar month and reflect the amounts billed.

The Company also derives other related income from interest on the outstanding loan balance of development loans secured by residential property. The Company records the revenue on a monthly basis as the interest is earned. All interest earned is paid-in-kind.

For the three months ended June 30, 2025 and June 30, 2024, option fee revenues and other related income were $149.0 million and $0, respectively, and were comprised of $141.1 million option fee revenues and $7.9 million other related income for development loans. For the six months ended June 30, 2025 and June 30, 2024, option fee revenues and other related income were $231.7 million and $0, respectively, and were comprised of $221.2 million option fee revenues and $10.5 million other related income for development loans. For the three and six months ended June 30, 2025, revenue earned from Lennar was in 95% and 97% of total option fee revenue, respectively, which is calculated per the terms of the Master Option Agreement.

Management Fee Expense

Management Fee Expense

Pursuant to the Management Agreement, the Company pays KL a management fee in an amount equal to 1.25% per annum (0.3125% per quarter) of Tangible Assets, as defined in the Management Agreement (the “Management Fee”). The Management Fee is due and payable quarterly in advance as of the first day of each quarter and is reviewed by the Board.

Except for certain reimbursable expenses, all expenses incurred by Millrose and its subsidiaries in the ordinary course of business are covered under the Management Fee, including the costs of all administrative and operating functions and systems, office space and office equipment, public company expenses, expenses incurred in maintaining the Company’s REIT status, compensation and fees paid to officers, employees, directors, vendors, consultants, advisors, and other outside professionals. All employees are employed by KL (or an affiliate of KL), and their salaries are paid by KL (or an affiliate of KL); therefore the Company does not record personnel-related expenses, including salaries, benefits, and share-based compensation for any employees. All cash compensation and fees paid to the Board are also paid by KL and covered by the Management Fee. The Management Fee does not cover certain offering expenses, rating agency fees, fees incurred for services in connection with extraordinary litigation and mergers and acquisitions and other events outside the Company’s ordinary course of business, and, in certain circumstances, costs associated with the ownership and maintenance of land.

The Management Fee for the three months ended June 30, 2025 was $22.0 million, which covers services for the period from April 1, 2025 through June 30, 2025. The Management Fee for the six months ended June 30, 2025 was $34.1 million, which covers the period from the Spin-Off date of February 7, 2025 through June 30, 2025 based on the number of days that the Management Agreement was in effect.

Sales, General, and Administrative Expenses from Pre-Spin Period

Sales, General, and Administrative Expenses from Pre-Spin Period

Sales, general, and administrative expenses from pre-spin period are costs directly attributable to the Predecessor Millrose Business prior to the Spin-Off, and include pre-Spin-Off operating and employee compensation costs for dedicated regional and divisional land teams tasked with acquiring and developing the homesites Lennar transferred to Millrose in the Spin-Off. For the three and six months ended June 30, 2024, these expenses were allocated to the Predecessor Millrose Business on a specific identification basis or, when specific identification was not practicable, a proportional cost allocation method primarily based on headcount, usage, or other allocation methods depending on the nature of the services. For the six months ended June 30, 2025, these expenses included an allocation for the period from January 1, 2025 through February 7, 2025 calculated as (i) the average daily expense allocated and recorded for the twelve months ended December 31, 2024, applied to (ii) days in the first quarter 2025 prior to the Spin-Off. The Company believes the allocation is representative in all material respects to the costs that are directly attributable to the Predecessor Millrose Business for the period from January 1, 2025 through February 7, 2025. Sales, general, and administrative expenses from pre-spin period were $25.0 million for the period of January 1, 2025 through February 7, 2025. Sales, general, and administrative expenses for the three and six months ended June 30, 2024 were $59.8 million and $116.7 million, respectively.

Income Taxes

Predecessor Millrose Business Income Taxes

The basis of accounting for income taxes for the Predecessor Millrose Business for the three and six months ended June 30, 2025 is unchanged from that disclosed in the notes to the combined financials statements included in Millrose’s Form 10-K for the year ended December 31, 2024. See Note 9. Income Taxes for additional information.

 

Income Taxes

The Company records income taxes using the asset and liability method set under ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as net operating loss and tax credit carryforwards as applicable. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the year in which the temporary differences are expected to be recovered or paid. The effect of the change in tax rates is recognized in earnings in the period when the changes are enacted. Interest related to unrecognized tax benefits is recognized in the financial statements as a component of income tax expense.

Deferred tax assets are recognized to the extent that it is more likely than not that they will be realized. The Company reviews the potential realization of deferred tax assets and establishes a valuation allowance to reduce the deferred tax assets if it is determined more likely than not that some portion, or all, of the deferred tax assets will not be realized. The Company considers all available positive and negative evidence, including recent financial performance, actual earnings (losses), future reversals of existing temporary differences, projected future taxable income, and tax planning strategies.

Millrose intends to elect to be taxed as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ending December 31, 2025. As Millrose qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its net income that it distributes to its stockholders. To maintain its qualification as a REIT, Millrose will be required under the Code to distribute at least 90% of its REIT taxable income (without regard to the deduction for dividends paid and excluding net capital gains) to its stockholders and meet certain other requirements. If the Company fails to maintain its qualification as a REIT in any taxable year, it will then be subject to federal income taxes on its taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year during which qualification is lost unless the Internal Revenue Service grants Millrose relief under certain statutory provisions. Such an event could have a material adverse effect on its net income and net cash available for distribution to its members.

Millrose intends to elect for its wholly owned subsidiary Millrose Holdings and its indirectly wholly owned subsidiary RCH Holdings, Inc. to be taxable as taxable REIT subsidiaries (“TRSs”) and may form or acquire other direct or indirect wholly owned subsidiaries that will also elect to be taxed as TRSs in the future. TRSs are subject to taxation at regular corporate income tax rates.

See Note 9. Income Taxes for additional information.
Other Income (Expense)

Other Income (Expense)

The Company records revenue and expenses that are not directly related to the core operations of the Company as other income and expense. Other income (expense) for the three months ended June 30, 2025 was $9.3 million and included interest expense of $10.3 million for the Revolving Credit Facility and DDTL Credit Agreement, other expenses of $0.8 million, and interest income of $1.8 million related to cash balances. Other income (expense) for the six months ended June 30, 2025 was $10.7 million and included interest expense of $12.8 million for the Revolving Credit Facility and DDTL Credit Agreement, other expenses of $0.8 million, and interest income of $2.9 million related to cash balances.

Fair Value Measurements

Fair Value Measurements

Certain assets and liabilities are required to be reported at fair value under GAAP. The framework for determining fair value provided by GAAP prioritizes the inputs used in measuring fair value as follows:

•
Level 1: Fair value determined based on quoted prices in active markets for identical assets or liabilities.
•
Level 2: Fair value determined using significant other observable inputs.
•
Level 3: Fair value using significant other unobservable inputs.

As of June 30, 2025 and December 31, 2024, there were no assets or liabilities measured at fair value on a recurring basis. Cash, option fee receivables, and other current liabilities approximate their fair values due to their short-term nature. The Revolving Credit Facility and DDTL Credit Facility have a recorded value that approximates fair market value, as it bears interest at a rate that approximates fair market value. The Company’s inventory is stated at cost and is monitored for indicators of impairment. If any such indicators are identified, the inventory is written down to fair value. As of June 30, 2025 and December 31, 2024, no indicators of impairment were noted.
Recent Accounting Standards

Recent Accounting Standards

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disclosure of disaggregated information about certain income statement expense line items in the notes to the financial statements on an interim and annual basis. ASU 2024-03 will be effective for the Company’s fiscal year ending December 31, 2027. Early

adoption is permitted. The Company has elected not to early adopt and is currently evaluating the potential impact of ASU 2024-03 on its financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09 (“ASU 2023-09”) Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires public companies to annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 will be effective for the annual reporting periods in fiscal years beginning after December 15, 2024. The Company does not expect it to have a material effect on its financial statements and disclosures.
v3.25.2
Basis of Presentation and Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Summary of Change in Inventories from Spin-off

The following roll forward summarizes the change in homesite inventory and other related assets from the Spin-Off through June 30, 2025:

 

 

 

Six months
ended,

 

(in thousands)

 

June 30
2025

 

Homesite inventory and other related assets

 

 

 

 

Beginning balance as of February 7, 2025 Spin-Off date

$

 

-

 

Homesite inventory contributed by Lennar in Spin-Off (1)

 

 

5,496,126

 

Land acquired from Rausch (2)

 

 

1,158,303

 

Investments in homesite inventory and other related assets (3)

 

 

2,699,890

 

Homesite inventory takedowns and other related paydowns (4)

 

 

(1,514,798

)

Interest receivable paid-in-kind (5)

 

 

 

5,657

 

Total homesite inventory and other related assets as of June 30, 2025

 

$

 

7,845,178

 

 

(1) Includes land contributed of $5.556 billion, less deferred tax asset adjustment of $59.8 million. Option deposits of $584.8 million for land

contributed are recorded as builder deposit liabilities in the unaudited condensed consolidated financial statements and when netted

with homesite inventory contributed by Lennar is $4.911 billion of net non-cash contributions from Lennar.

(2) Includes land acquired of $1.049 billion plus deferred tax liability adjustment of $116.7 million, less earnest deposits of $7.6 million.

(3) Includes land acquired of $1.885 billion, development costs of $524.0 million, and investment in development loans of $291.3 million.

Land additions include $522.8 million of land assets acquired in the New Home transaction.

(4) Includes homesite inventory takedowns of $1.509 billion and development loan paydowns of $5.2 million.

(5) Interest receivable for development loan that is paid-in-kind.

Summary of Roll Forward of Builder Deposit Liability The following is a roll forward of the builder deposit liability for the six months ended June 30, 2025, which reflects activity after the Spin-Off. There were no builder deposits for the Predecessor Millrose Business prior to the Spin-Off.

 

 

 

Six months
ended,

 

(in thousands)

 

June 30,
2025

 

Builder deposits

 

 

 

Beginning balance as of February 7, 2025 Spin-Off date

 

$

 

-

 

Builder deposits, Spin-Off

 

 

584,848

 

Builder deposits, Rausch land acquisition

 

 

 

90,264

 

Builder deposits, additions

 

 

 

201,055

 

Homesite takedowns, options exercised

 

 

 

(76,605

)

Total builder deposits as of June 30, 2025

 

$

 

799,562

 
v3.25.2
Other Assets (Tables)
 6 Months Ended
Jun. 30, 2025
Other Assets [Abstract]  
Summary of Other Assets

Other assets as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

June 30,

 

 

December 31,

 

(in thousands)

 

2025

 

 

2024

 

Deferred financing costs (1)

 

$

 

8,577

 

 

$

 

-

 

Earnest deposits and prepaid due diligence costs (2)

 

 

5,828

 

 

 

-

 

Other assets (3)

 

 

 

853

 

 

 

 

-

 

Total other assets

 

$

 

15,258

 

 

$

 

-

 

(1) Deferred financing costs for Revolving Credit Facility.

(2) Includes net earnest deposits of $4.0 million and due diligence costs for Rausch land acquisition of $1.8 million.

(3) Includes prepaid taxes of $0.8 million and other prepaid expenses.

v3.25.2
Other Liabilities (Tables)
 6 Months Ended
Jun. 30, 2025
Other Liabilities Disclosure [Abstract]  
Summary of Other Liabilities

Other liabilities as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

June 30,

 

 

December 31,

 

(in thousands)

 

2025

 

 

2024

 

Dividend payable (1)

 

$

 

114,542

 

 

$

 

-

 

Seller notes payable (2)

 

 

 

13,000

 

 

 

 

-

 

Accrued interest payable (3)

 

 

 

2,571

 

 

 

 

-

 

Income tax payable (4)

 

 

 

1,397

 

 

 

 

-

 

Other accrued liabilities

 

 

 

250

 

 

 

 

-

 

Total other liabilities

 

$

 

131,760

 

 

$

 

-

 

(1) Payable for dividend declared by the Company on June 16, 2025, and paid on July 15, 2025. See Note 10.

(2) Loan payable to lender specific to a community acquired from Lennar.

(3) Accrued interest payable for Revolving Credit Facility of $1.4 million and DDTL Credit Agreement of $1.2 million.

(4) State income tax payable.

v3.25.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes

The provision for income taxes was as follows for the three and six months ended June 30, 2025 and June 2024:

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

June 30,
2025

 

 

June 30,
2024

 

 

June 30,
2025

 

 

June 30,
2024

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

 

4,013

 

 

$

 

-

 

 

$

 

7,662

 

 

$

 

-

 

State

 

 

 

731

 

 

 

 

-

 

 

 

 

1,397

 

 

 

 

-

 

Total current income tax expense

 

 

 

4,744

 

 

 

 

-

 

 

 

 

9,059

 

 

 

 

-

 

Deferred

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

 

20

 

 

 

 

-

 

 

 

 

75

 

 

 

 

-

 

State

 

 

4

 

 

 

-

 

 

 

14

 

 

 

-

 

Total deferred income tax expense

 

 

 

24

 

 

 

 

-

 

 

 

 

89

 

 

 

 

-

 

Total income tax expense

 

$

 

4,768

 

 

$

 

-

 

 

$

 

9,148

 

 

$

 

-

 
Schedule of Reconciliation of Statutory Rate and Effective Tax Rates

The effective tax rate for the three and six months ended June 30, 2025 was 24.8%, as compared to an effective tax rate of zero for the three months and six months ended June 30, 2024. Taxable income generated from certain activities that do not qualify under REIT provisions is earned through our TRSs and is subject to U.S. federal, state, and local income and franchise taxation. A reconciliation of the TRS statutory rate and effective tax rates was as follows:

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

June 30,
2025

 

June 30,
2024

 

June 30,
2025

 

June 30,
2024

Statutory rate

 

 

 

21.0

 

%

 

 

 

-

 

%

 

 

 

21.0

 

%

 

 

 

-

 

%

State income rates, net of federal income tax benefit

 

 

 

3.8

 

%

 

 

 

-

 

%

 

 

 

3.8

 

%

 

 

 

-

 

%

Valuation allowance

 

 

 

-

 

%

 

 

 

-

 

%

 

 

 

-

 

%

 

 

 

-

 

%

Effective tax rate

 

 

 

24.8

 

%

 

 

 

-

 

%

 

 

 

24.8

 

%

 

 

 

-

 

%
Schedule of Company's Deferred Tax Liabilities

The Company’s deferred tax liabilities as of June 30, 2025 and December 31, 2024 were as follows:

 

(in thousands)

 

June 30,
2025

 

 

December 31,
2024

 

Deferred tax liabilities

 

 

 

 

 

 

 

Land basis adjustments, Spin-Off and acquired Rausch land assets

 

$

 

56,824

 

 

$

 

-

 

Homesite takedown adjustments

 

 

89

 

 

 

-

 

Total deferred tax liabilities

 

$

 

56,913

 

 

$

 

-

 
v3.25.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2025
Earnings Per Share [Abstract]  
Summary of Basic and Diluted Earnings Per Share

Basic and diluted earnings per share was calculated as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,
2025

 

 

June 30,
2024

 

 

June 30,
2025

 

 

June 30,
2024

 

(Dollars in thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

 

112,760

 

 

$

 

(59,761

)

 

$

 

152,566

 

 

$

 

(116,748

)

Adjustment for expenses from pre-spin periods

 

 

 

-

 

 

 

 

-

 

 

 

 

24,960

 

 

 

 

-

 

Numerator for basic and diluted earnings per share

 

$

 

112,760

 

 

$

 

(59,761

)

 

$

 

177,526

 

 

$

 

(116,748

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic (1)

 

 

166,003,497

 

 

 

-

 

 

 

 

166,003,497

 

 

 

-

 

Basic earnings per share

 

$

 

0.68

 

 

$

 

-

 

 

$

 

1.07

 

 

$

 

-

 

Weighted average common shares outstanding - diluted (2)

 

 

166,031,175

 

 

 

-

 

 

 

 

166,020,988

 

 

 

-

 

Diluted earnings per share

 

$

 

0.68

 

 

$

 

-

 

 

$

 

1.07

 

 

$

 

-

 

 

(1) Basic weighted average common shares for the three and six months ended June 30, 2025 represent the common shares issued at the Spin-Off, which are the common shares outstanding as of June 30, 2025. No publicly-listed shares were outstanding as of June 30, 2024.

(2) Diluted weighted shares for the three and six months ended June 30, 2025 include 28,300 RSUs granted in the aggregate to each member of tbe Board under the 2024 Incentive Plan on April 3, 2025. The RSUs were unvested as of June 30, 2025.

v3.25.2
Description of Business - Additional Information (Details)
 6 Months Ended
Jun. 25, 2025
USD ($)
Property
May 12, 2025
USD ($)
Feb. 10, 2025
USD ($)
Property
Feb. 07, 2025
USD ($)
Property
$ / shares
shares
Jun. 30, 2025
USD ($)
$ / shares
shares
Jun. 24, 2025
USD ($)
Description of business [Line Items]            
Date of incorporation         Mar. 19, 2024  
Entity incorporation state         MD  
Common stock par value per share | $ / shares         $ 0.01  
Land banking proceeds to acquire amount         $ 858,938,000  
Revolving Credit Facility            
Description of business [Line Items]            
Commitment amount         $ 25,000,000  
Maturity date       Feb. 07, 2028    
Class A Common Stock            
Description of business [Line Items]            
Common stock par value per share | $ / shares         $ 0.01  
Class B Common Stock            
Description of business [Line Items]            
Common stock par value per share | $ / shares         $ 0.01  
Lennar Corporation            
Description of business [Line Items]            
Percentage of ownership interest after disposal       20.00%    
Spin-Off | Lennar Corporation            
Description of business [Line Items]            
Percentage of ownership interest sold       80.00%    
Retained shares | shares       33,200,053    
Land assets       $ 5,500,000,000    
Number of homesites | Property       87,000    
Cash       $ 1,000,000,000    
Cash deposits       584,800,000    
Spin-Off | Lennar Corporation | Revolving Credit Facility            
Description of business [Line Items]            
Commitment amount       $ 1,335,000,000    
Maturity date       Feb. 07, 2028    
Spin-Off | Lennar Corporation | Class A Common Stock            
Description of business [Line Items]            
Distribution of common stock | shares       120,983,633 120,983,633  
Common stock par value per share | $ / shares       $ 0.01    
Retained shares | shares       33,200,053 33,200,053  
Spin-Off | Lennar Corporation | Class B Common Stock            
Description of business [Line Items]            
Distribution of common stock | shares       11,819,811 11,819,811  
Common stock par value per share | $ / shares       $ 0.01    
Rausch Coleman Companies, LLC            
Description of business [Line Items]            
Number of homesites | Property     25,000      
Acquisition in land assets     $ 1,158,000,000      
Percentage of interest acquired     100.00%      
Cash payment received from acquisition     $ 859,000,000      
Landsea Homes | Agreement with New Home Company            
Description of business [Line Items]            
Number of homesites | Property 4,186          
Acquisition in land assets $ 522,800,000          
Cash payment received from acquisition 494,500,000          
Land banking proceeds to acquire amount 494,500,000          
Option contract to acquire business $ 28,300,000          
Landsea Homes | Agreement with New Home Company | Delayed Draw Term Loan            
Description of business [Line Items]            
Delayed draw term loan           $ 1,000,000,000
Landsea Homes | Maximum | Agreement with New Home Company            
Description of business [Line Items]            
Land banking proceeds to acquire amount   $ 700,000,000        
v3.25.2
Basis of Presentation and Significant Accounting Policies - Additional Information (Details)
 1 Months Ended 3 Months Ended 5 Months Ended 6 Months Ended
Feb. 07, 2025
USD ($)
Segment
Jun. 30, 2025
USD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2025
USD ($)
Segment
Jun. 30, 2025
USD ($)
$ / shares
Jun. 30, 2024
USD ($)
Dec. 31, 2024
USD ($)
Basis of presentation and significant accounting policies [Line Items]              
Number of reportable segment | Segment 0     1      
Number of operating segment | Segment       1      
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration]         srt:ChiefExecutiveOfficerMember    
Segment Reporting, Expense Information Used by CODM, Description         Net income attributable to Millrose, as presented on the Company’s unaudited condensed consolidated statements of operations, is a metric utilized by the CODM to assess the Reporting Segment’s performance and allocate resources. Total assets, as presented on the Company’s unaudited condensed consolidated balance sheets, is used to measure the Reporting Segment’s assets.    
Cash   $ 66,600,000   $ 66,600,000 $ 66,600,000    
Cash equivalents   0   0 0    
Cash and cash equivalents   66,575,000   66,575,000 66,575,000   $ 0
Option fee and other related receivables   46.6   46.6 46.6   0
Option fee receivables   46,635,000   46,635,000 46,635,000    
Total inventories   7,845,178,000   7,845,178,000 7,845,178,000   $ 5,465,290,000
Builder deposits prior to Spin-Off $ 0            
Development guarantee holdback liability   $ 100,000,000   $ 100,000,000 $ 100,000,000    
Site improvement gurantee due period         10 days    
Percentage of development guarantee   50.00%   50.00% 50.00%    
Option fee revenues and other related income   $ 149,000,000 $ 0   $ 231,700,000 $ 0  
Option fee revenues   141,100,000     221,200,000    
Other related income for development loans   7,900,000     10,500,000    
Management fee expense   21,960,000     34,064,000    
Sales, general, and administrative expenses $ 25,000,000   $ 59,800,000     $ 116,700,000  
Other income (expense)   9,333,000     10,781,000    
Interest expense   10,285,000     12,821,000    
Interest income   1,818,000     $ 2,906,000    
Kennedy Lewis Land and Residential Advisors LLC              
Basis of presentation and significant accounting policies [Line Items]              
Percentage of management fee paid         1.25%    
Percentage of management fee quarterly payment         0.3125%    
Management fee expense   22,000,000     $ 34,100,000    
Post Spin-Off              
Basis of presentation and significant accounting policies [Line Items]              
Management fee expense   $ 22,000,000     $ 34,100,000    
Master Option Agreement | Lennar              
Basis of presentation and significant accounting policies [Line Items]              
Percentage of total option fee revenue   95.00%     97.00%    
Revolving Credit Facility              
Basis of presentation and significant accounting policies [Line Items]              
Deferred financing costs   $ 8,600,000   $ 8,600,000 $ 8,600,000    
Amortization recorded to interest expense         1,300,000    
Interest expense   10,300,000     12,800,000    
Other expenses   800,000     800,000    
DDTL Credit Facility              
Basis of presentation and significant accounting policies [Line Items]              
Deferred financing costs   13,800,000   13,800,000 13,800,000    
Amortization recorded to interest expense         $ 200,000    
Real Estate Investment Trust (REIT)              
Basis of presentation and significant accounting policies [Line Items]              
Percentage of taxable income         90.00%    
Class A Common Stock              
Basis of presentation and significant accounting policies [Line Items]              
Dividends declared | $ / shares         $ 0.69    
Class B Common Stock              
Basis of presentation and significant accounting policies [Line Items]              
Dividends declared | $ / shares         $ 0.69    
Option Fee Receivables              
Basis of presentation and significant accounting policies [Line Items]              
Credit allowances   $ 0   $ 0 $ 0    
v3.25.2
Basis of Presentation and Significant Accounting Policies - Summary of Change in Inventories from Spin-Off (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Inventory [Line Items]    
Total inventories $ 7,845,178 $ 5,465,290
Homesite inventory and other related assets    
Inventory [Line Items]    
Land acquired from Rausch 524,000  
Investments in homesite inventory and other related paydowns 2,699,890  
Homesite inventory takedowns and other related paydowns (1,514,798)  
Interest receivable paid-in-kind 5,657  
Total inventories 7,845,178  
Homesite inventory and other related assets | Rausch    
Inventory [Line Items]    
Land acquired from Rausch 1,158,303  
Homesite inventory and other related assets | Lennar    
Inventory [Line Items]    
Homesite inventory contributed by Lennar in Spin-Off $ 5,496,126  
v3.25.2
Basis of Presentation and Significant Accounting Policies - Summary of Change in Inventories from Spin-Off (Parenthetical) (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Inventory [Line Items]  
Earnest deposits $ 4,000
Homesite Inventory And Other Related Assets [Member]  
Inventory [Line Items]  
Homesite inventory land acquisition 1,885,000
Homesite development costs 524,000
Investment in development loans 291,300
Homesite inventory take downs 1,509,000
Development loan paydowns 5,200
Homesite Inventory And Other Related Assets [Member] | Rausch  
Inventory [Line Items]  
Homesite inventory land acquired 1,049,000
Deferred tax liability 116,700
Earnest deposits 7,600
Homesite development costs 1,158,303
Homesite Inventory And Other Related Assets [Member] | Agreement with New Home Company  
Inventory [Line Items]  
Homesite inventory land addition 522,800
Lennar | Homesite Inventory And Other Related Assets [Member]  
Inventory [Line Items]  
Homesite inventory land contributed 5,556,000
Deferred tax liability 59,800
Option deposits 584,800
Homesite inventory non cash contribution $ 4,911,000
v3.25.2
Basis of Presentation and Significant Accounting Policies - Summary of Roll Forward of Builder Deposit Liability (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Accounting Policies [Abstract]  
Builder deposits, Spin-Off $ 584,848
Builder deposits, Rausch land acquisition 90,264
Builder deposits, additions 201,055
Homesite takedowns, options exercised (76,605)
Total builder deposits as of March 31, 2025 $ 799,562
v3.25.2
Business Transactions - Additional Information (Details)
 6 Months Ended
Jun. 25, 2025
USD ($)
Property
May 12, 2025
USD ($)
Feb. 10, 2025
USD ($)
Property
Feb. 07, 2025
USD ($)
Property
$ / shares
shares
Jun. 30, 2025
USD ($)
$ / shares
shares
Business Acquisition [Line Items]          
Common stock par value per share | $ / shares         $ 0.01
Deferred tax liabilities         $ 56,913,000
Earnest Money Deposits         4,000,000
Development guarantee holdbacks         100,000,000
Land banking proceeds to acquire amount         $ 858,938,000
Rausch Land Assets          
Business Acquisition [Line Items]          
Number of homesites | Property     25,000    
Deferred tax liabilities     $ 116,700,000    
Earnest Money Deposits     7,600,000    
Cash payment received from acquisition     858,900,000    
Option deposits     90,300,000    
Development guarantee holdbacks     $ 100,000,000    
Landsea Homes | Agreement with New Home Company          
Business Acquisition [Line Items]          
Number of homesites | Property 4,186        
Cash payment received from acquisition $ 494,500,000        
Land banking proceeds to acquire amount 494,500,000        
Acquisition in land assets 522,800,000        
Option contract to acquire business $ 28,300,000        
Landsea Homes | Maximum | Agreement with New Home Company          
Business Acquisition [Line Items]          
Land banking proceeds to acquire amount   $ 700,000,000      
Rausch Coleman Companies, LLC          
Business Acquisition [Line Items]          
Number of homesites | Property     25,000    
Percentage of interest acquired     100.00%    
Cash payment received from acquisition     $ 859,000,000    
Acquisition in land assets     $ 1,158,000,000    
Class A Common Stock          
Business Acquisition [Line Items]          
Common stock par value per share | $ / shares         $ 0.01
Class B Common Stock          
Business Acquisition [Line Items]          
Common stock par value per share | $ / shares         $ 0.01
Lennar Corporation          
Business Acquisition [Line Items]          
Percentage of ownership interest after disposal       20.00%  
Spin-Off          
Business Acquisition [Line Items]          
Stockholders equity for contributions       $ 5,200,000,000  
Spin-Off | Lennar Corporation          
Business Acquisition [Line Items]          
Percentage of ownership interest sold       80.00%  
Common stock issued, Spin-Off       $ 1,300,000  
Retained shares | shares       33,200,053  
Land assets       $ 5,500,000,000  
Number of homesites | Property       87,000  
Cash       $ 1,000,000,000  
Cash deposits       584,800,000  
Liabilities for seller notes       19,000,000  
Liabilities for prepaid due diligence costs       77,900,000  
Deferred tax asset       59,800,000  
Stockholders equity for contributions       5,900,000,000  
Spin-Off related costs       $ 77,900,000  
Spin-Off | Lennar Corporation | Class A Common Stock          
Business Acquisition [Line Items]          
Distribution of common stock | shares       120,983,633 120,983,633
Common stock par value per share | $ / shares       $ 0.01  
Common stock issued, Spin-Off       $ 300,000  
Retained shares | shares       33,200,053 33,200,053
Spin-Off | Lennar Corporation | Class B Common Stock          
Business Acquisition [Line Items]          
Distribution of common stock | shares       11,819,811 11,819,811
Common stock par value per share | $ / shares       $ 0.01  
v3.25.2
Related Party Transactions - Additional Information (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
USD ($)
Jun. 30, 2025
USD ($)
Related Party Transaction [Line Items]    
Option fee receivables $ 46,635,000 $ 46,635,000
Management fee paid $ 21,960,000 $ 34,064,000
Lennar | Revenue | Customer Concentration Risk [Member]    
Related Party Transaction [Line Items]    
Concentration of revenue 95.00% 97.00%
Lennar    
Related Party Transaction [Line Items]    
Percentage of shares owned by Lennar 20.00% 20.00%
Lennar Corporation    
Related Party Transaction [Line Items]    
Homesite inventory $ 6,900,000,000 $ 6,900,000,000
Option deposit liabilities 679,700,000 679,700,000
KL    
Related Party Transaction [Line Items]    
Management fee paid $ 22,000,000 34,100,000
Amounts payable   0
Amounts receivable   $ 0
v3.25.2
Other Assets - Summary of Other Assets (Details)
$ in Thousands
Jun. 30, 2025
USD ($)
Other Assets [Abstract]  
Deferred financing costs $ 8,577
Earnest deposits and prepaid due diligence costs 5,828
Other assets 853
Total other assets $ 15,258
v3.25.2
Other Assets - Summary of Other Assets (Parenthetical) (Details)
$ in Thousands
Jun. 30, 2025
USD ($)
Other Assets [Line Items]  
Deferred financing costs $ 8,577
Earnest deposits 4,000
Prepaid taxes 800
Rausch Land Acquisition  
Other Assets [Line Items]  
Due diligence costs $ 1,800
v3.25.2
Other Liabilities - Summary of Other Liabilities (Details)
$ in Thousands
Jun. 30, 2025
USD ($)
Other Liabilities Disclosure [Abstract]  
Dividends Payable $ 114,542
Seller notes payable 13,000
Accrued interest payable 2,571
Income tax payable 1,397
Other accrued liabilities 250
Total other liabilities $ 131,760
v3.25.2
Other Liabilities - Summary of Other Liabilities (Parenthetical) (Details) - USD ($)
$ in Thousands
 6 Months Ended
Apr. 15, 2025
Jun. 30, 2025
Other Liabilities [Line Items]    
Accrued interest payable   $ 2,571
Income tax payable   1,397
Revolving Credit Facility    
Other Liabilities [Line Items]    
Accrued interest payable   1,400
DDTL Credit Agreement    
Other Liabilities [Line Items]    
Accrued interest payable   $ 1,200
O 2025 Q1 Dividends    
Other Liabilities [Line Items]    
Dividend payable paid date Apr. 15, 2025  
O 2025 Q2 Dividends    
Other Liabilities [Line Items]    
Dividend payable declared date   Jun. 16, 2025
Dividend payable paid date   Jul. 15, 2025
v3.25.2
Debt Obligations - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 24, 2025
Feb. 07, 2025
Jun. 30, 2025
Jun. 30, 2025
Dec. 31, 2024
Line of Credit Facility [Line Items]          
Debt obligations, net     $ 1,011,162,000 $ 1,011,162,000 $ 24,188,000
Outstanding interest payable     2,571,000 2,571,000  
Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Outstanding principal balance     25,000,000 25,000,000  
Deferred financing costs     8,600,000 8,600,000  
Line of credit facility, commitments amount $ 1,000,000,000 $ 1,335,000,000      
Line of credit facility, borrowed   $ 950,000,000      
Credit repaid       $ 925,000,000  
Line of credit facility, interest rate description       Loans under the Revolving Credit Agreement bear interest at the Adjusted Term SOFR Rate (as defined in the Revolving Credit Agreement) plus an applicable margin at the per annum rate of (i) 2.00%, if the Leverage Ratio (as defined in the Revolving Credit Agreement) is less than or equal to 0.30 to 1.00, (ii) 2.25% if Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (iii) 2.50% if the Leverage Ratio is greater than 0.40 to 1.00. At the Company’s option, loans may instead bear interest at the Alternate Base Rate (as defined in the Revolving Credit Agreement) plus an applicable margin at the per annum rate of 1.00%, 1.25% or 1.50%, depending upon the Leverage Ratio.  
Maturity date   Feb. 07, 2028      
Interest expense     8,900,000 $ 11,400,000  
Interest expense     7,800,000 10,100,000  
Interest payments     8,200,000 8,700,000  
Amortized deferred financing fees     1,100,000 1,300,000  
Outstanding interest payable     1,400,000 1,400,000  
Revolving Credit Facility | Other Current Liabilities          
Line of Credit Facility [Line Items]          
Outstanding interest payable     1,400,000 1,400,000  
Revolving Credit Facility | Promissory Note          
Line of Credit Facility [Line Items]          
Line of credit facility, commitments amount     4,800,000,000 4,800,000,000  
Revolving Credit Facility | Base Rate          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 1.00%        
Revolving Credit Facility | Base Rate | Leverage Ratio Less Than or Equal to 0.30 to 1.00          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum   1.00%      
Revolving Credit Facility | Base Rate | Leverage Ratio Greater Than 0.30 to 1.00 and Less Than or Equal to 0.40 to 1.00          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum   1.25%      
Revolving Credit Facility | Base Rate | Leverage Ratio Greater Than 0.40 to 1.00          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum   1.50%      
Revolving Credit Facility | SOFR | Leverage Ratio Less Than or Equal to 0.30 to 1.00          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum   2.00%      
Revolving Credit Facility | SOFR | Leverage Ratio Greater Than 0.30 to 1.00 and Less Than or Equal to 0.40 to 1.00          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum   2.25%      
Revolving Credit Facility | SOFR | Leverage Ratio Greater Than 0.40 to 1.00          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum   2.50%      
Delayed Draw Term Loan Facility          
Line of Credit Facility [Line Items]          
Outstanding principal balance     1,000,000,000 1,000,000,000  
Debt obligations, net     986,100,000 986,100,000  
Deferred financing costs     13,800,000 13,800,000  
Line of credit facility, borrowed       $ 1,000,000  
Line of credit facility, interest rate description       Loans under the DDTL Credit Agreement bear interest at the Adjusted Term SOFR Rate (as defined in the DDTL Credit Agreement, the “DDTL Adjusted Term SOFR Rate”) plus an applicable margin at the per annum rate of: (i) from (and including) the initial draw date through (and including) 89 days after the initial draw date (a) 2.00% if the Leverage Ratio (as defined in the DDTL Credit Agreement, the “DDTL Leverage Ratio”) is less than or equal to 0.30 to 1.00, (b) 2.25% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 2.50% if the DDTL Leverage Ratio is greater than 0.40 to 1.00; (ii) from (and including) 90 days after the initial draw date through (and including) 179 days after the initial draw date (a) 2.25% if the DDTL Leverage Ratio is less than or equal to 0.30 to 1.00, (b) 2.50% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 2.75% if the DDTL Leverage Ratio is greater than 0.40 to 1.00; (iii) from (and including) 180 days after the initial draw date through (and including) 269 days after the initial draw date (a) 2.50% if the DDTL Leverage Ratio is less than or equal to 0.30 to 1.00, (b) 2.75% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 3.00% if the DDTL Leverage Ratio is greater than 0.40 to 1.00; and (iv) from (and including) 270 days after the initial draw date and thereafter (a) 2.75% if the DDTL Leverage Ratio is less than or equal to 0.30 to 1.00, (b) 3.00% if the DDTL Leverage Ratio is greater than 0.30 to 1.00 and less than or equal to 0.40 to 1.00, and (c) 3.25% if the DDTL Leverage Ratio is greater than 0.40 to 1.00. At the Company’s option, loans may instead bear interest at the Alternate Base Rate (as defined in the DDTL Credit Agreement, the “DDTL Alternate Base Rate”) plus an applicable margin at the per annum rate of 1.00% lower than the applicable margin for DDTL Adjusted Term SOFR Rate loans set forth above, in each case based upon the DDTL Leverage Ratio and the time after initial draw.  
Maturity date Jun. 23, 2026        
Interest expense     1,400,000 $ 1,400,000  
Interest expense     1,200,000    
Interest payments     0 0  
Amortized deferred financing fees     200,000    
Delayed Draw Term Loan Facility | Other Current Liabilities          
Line of Credit Facility [Line Items]          
Outstanding interest payable     $ 1,200,000 $ 1,200,000  
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Less Than or Equal to 0.30 to 1.00          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.25%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Less Than or Equal to 0.30 to 1.00 | 89 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.00%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Less Than or Equal to 0.30 to 1.00 | 180 Through 269 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.50%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Less Than or Equal to 0.30 to 1.00 | 270 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.75%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.30 to 1.00 and Less Than or Equal to 0.40 to 1.00 | 89 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.25%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.30 to 1.00 and Less Than or Equal to 0.40 to 1.00 | 90 Through 179 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.50%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.30 to 1.00 and Less Than or Equal to 0.40 to 1.00 | 180 Through 269 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.75%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.30 to 1.00 and Less Than or Equal to 0.40 to 1.00 | 270 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 3.00%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.40 to 1.00 | 89 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.50%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.40 to 1.00 | 90 Through 179 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 2.75%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.40 to 1.00 | 180 Through 269 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 3.00%        
Delayed Draw Term Loan Facility | SOFR | Leverage Ratio Greater Than 0.40 to 1.00 | 270 Days After Initial Draw Date          
Line of Credit Facility [Line Items]          
Line of credit facility, interest rate per annum 3.25%        
v3.25.2
Commitments and Contingencies - Additional Information (Details) - Option Contracts
$ in Billions
Jun. 30, 2025
USD ($)
Lennar  
Commitments and Contingencies Disclosure [Line Items]  
Land development commitments $ 5.7
Other Customers  
Commitments and Contingencies Disclosure [Line Items]  
Land development commitments $ 0.6
v3.25.2
Income Taxes - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Tax Disclosure [Line Items]        
Income tax expense $ 4,768,000 $ 0 $ 9,148,000 $ 0
Effective tax rate 24.80% 0.00% 24.80% 0.00%
Statutory rate 21.00% 0.00% 21.00% 0.00%
Predecessor        
Income Tax Disclosure [Line Items]        
Income tax expense   $ 0   $ 0
Statutory rate   0.00%   0.00%
Gross unrecognized tax benefits   $ 0   $ 0
Predecessor | Minimum        
Income Tax Disclosure [Line Items]        
Federal and state income tax net operating loss carryforwards term   10 years   10 years
Predecessor | Maximum        
Income Tax Disclosure [Line Items]        
Federal and state income tax net operating loss carryforwards term   20 years   20 years
v3.25.2
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Current        
Federal, Current $ 4,013 $ 0 $ 7,662 $ 0
State, Current 731 0 1,397 0
Total current income tax expense 4,744 0 9,059 0
Deferred        
Federal, Deferred 20 0 75 0
State, Deferred 4 0 14 0
Total deferred income tax expense 24 0 89 0
Total income tax expense $ 4,768 $ 0 $ 9,148 $ 0
v3.25.2
Income Taxes - Schedule of Reconciliation of Statutory Rate and Effective Tax Rates (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Income Tax Disclosure [Abstract]        
Statutory rate 21.00% 0.00% 21.00% 0.00%
State income rates, net of federal income tax benefit 3.80% 0.00% 3.80% 0.00%
Valuation allowance 0.00% (0.00%) (0.00%) (0.00%)
Effective tax rate 24.80% 0.00% 24.80% 0.00%
v3.25.2
Income Taxes - Schedule of Company's Deferred Tax Liabilities (Details)
$ in Thousands
Jun. 30, 2025
USD ($)
Deferred tax liabilities  
Total deferred tax liabilities $ 56,913
Land Basis Adjustments, Spin-Off and Acquired Rausch Land Assets  
Deferred tax liabilities  
Total deferred tax liabilities 56,824
Homesite Takedown Adjustments  
Deferred tax liabilities  
Total deferred tax liabilities $ 89
v3.25.2
Stockholders' Equity - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Apr. 15, 2025
Feb. 07, 2025
Jun. 30, 2025
Jun. 30, 2025
Class of Stock [Line Items]        
Common stock, shares authorized     450,000,000 450,000,000
Common stock, par value     $ 0.01 $ 0.01
Preferred stock, shares authorized     50,000,000 50,000,000
Preferred stock, shares outstanding     0 0
Preferred stock, par value     $ 0.01 $ 0.01
Basic weighted average common shares outstanding     166,003,497 166,003,497
Diluted weighted average common shares outstanding     166,031,175 166,020,988
Dividends payable     $ 114,542 $ 114,542
Restricted stock unit ("RSUs") granted       0
Additional paid-in capital     5,872,687 $ 5,872,687
Other Liabilities        
Class of Stock [Line Items]        
Dividends payable     $ 114,500 $ 114,500
O 2025 Q1 Dividends        
Class of Stock [Line Items]        
Dividend payment date Apr. 15, 2025      
O 2025 Q2 Dividends        
Class of Stock [Line Items]        
Dividend payable declared date       Jun. 16, 2025
Dividend payment date       Jul. 15, 2025
RSUs        
Class of Stock [Line Items]        
Restricted stock unit ("RSUs") granted     28,300 28,300
2024 Omnibus Incentive Plan        
Class of Stock [Line Items]        
Number of securities had been issued or granted     0 0
2024 Omnibus Incentive Plan | RSUs        
Class of Stock [Line Items]        
Restricted stock unit ("RSUs") granted       28,300
Lennar        
Class of Stock [Line Items]        
Percentage of ownership interest after disposal   20.00%    
Spin-Off        
Class of Stock [Line Items]        
Stockholders equity for contributions   $ 5,200,000    
Spin-Off | Lennar        
Class of Stock [Line Items]        
Retained shares   33,200,053    
Stockholders equity for contributions   $ 5,900,000    
Class A Common Stock        
Class of Stock [Line Items]        
Common stock, shares authorized     275,000,000 275,000,000
Common stock, par value     $ 0.01 $ 0.01
Dividend paid $ 0.38      
Dividends declared       $ 0.69
Class A Common Stock | O 2025 Q2 Dividends        
Class of Stock [Line Items]        
Dividend payable record date       Jul. 03, 2025
Dividend payment date       Jul. 15, 2025
Class A Common Stock | Spin-Off | Lennar        
Class of Stock [Line Items]        
Common stock, par value   $ 0.01    
Distribution of common stock   120,983,633 120,983,633 120,983,633
Retained shares   33,200,053   33,200,053
Class B Common Stock        
Class of Stock [Line Items]        
Common stock, shares authorized     175,000,000 175,000,000
Common stock, par value     $ 0.01 $ 0.01
Dividend paid $ 0.38      
Dividends declared       $ 0.69
Class B Common Stock | O 2025 Q2 Dividends        
Class of Stock [Line Items]        
Dividend payable record date       Jul. 03, 2025
Dividend payment date       Jul. 15, 2025
Class B Common Stock | Spin-Off | Lennar        
Class of Stock [Line Items]        
Common stock, par value   $ 0.01    
Distribution of common stock   11,819,811 11,819,811 11,819,811
Common Stock        
Class of Stock [Line Items]        
Basic weighted average common shares outstanding       166,003,497
Common Stock | Lennar        
Class of Stock [Line Items]        
Percentage of ownership interest after disposal       20.00%
v3.25.2
Stock-Based Compensation - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 03, 2025
Jun. 30, 2025
Jun. 30, 2025
Jun. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares granted     0  
Stock-based compensation expense   $ 200,000 $ 200,000  
Share based compensation awards, vested     0  
Share based compensation awards, forfeited     0  
Predecessor | Sales, General, and Administrative Expenses        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Stock-based compensation expense   $ 1,700,000 $ 8,900,000  
RSU        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares granted   28,300 28,300  
RSU | 2024 Incentive Plan        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Shares granted 5,660      
RSUs grant date fair value $ 150,000      
Aggregate value of RSUs granted 28,300      
RSUs vesting period 1 year      
Unrecognized compensation expense       $ 600,000
v3.25.2
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Numerator:        
Net income (loss) $ 112,760 $ (59,761) $ 152,566 $ (116,748)
Adjustment for expenses from pre-spin periods     24,960  
Numerator for basic earnings per share 112,760 (59,761) 177,526 (116,748)
Numerator for diluted earnings per share $ 112,760 $ (59,761) $ 177,526 $ (116,748)
Denominator:        
Weighted average common shares outstanding - basic 166,003,497   166,003,497  
Basic earnings per share $ 0.68   $ 1.07  
Weighted average common shares outstanding - diluted 166,031,175   166,020,988  
Diluted earnings per share $ 0.68   $ 1.07  
v3.25.2
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Parenthetical) (Details) - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2025
Jun. 30, 2024
Earnings Per Share [Line Items]      
Public shares outstanding     0
Restricted stock unit ("RSUs") granted   0  
RSUs      
Earnings Per Share [Line Items]      
Restricted stock unit ("RSUs") granted 28,300 28,300  
v3.25.2
Earnings Per Share - Additional Information (Details)
$ in Millions
 1 Months Ended
Feb. 07, 2025
USD ($)
Earnings Per Share [Abstract]  
Net loss prior to spin-off $ 25.0