Millrose Properties Announces First Dividend and Shares 2025 Forecast
Millrose Properties, Inc., a pioneering Homesite Option Purchase Platform (HOPP’R) for residential homebuilders, has announced a significant milestone: its inaugural dividend of $65 million, equating to $0.38 per share of Class A and Class B common stock. This dividend will be distributed on April 15, 2025, to shareholders of record as of April 4, 2025. Covering the period from Millrose’s spin-off from Lennar Corporation (“Lennar”) on February 7, 2025, through March 31, 2025, the dividend represents a pro-rated portion of an anticipated quarterly payout of $0.65 per share.
A Major Milestone for Millrose
The announcement of this dividend marks a pivotal moment in Millrose’s growth journey. Darren Richman, Chief Executive Officer and President of Millrose Properties, Inc., emphasized the company’s commitment to shareholder value. “We’re thrilled to announce our first-ever dividend, which underscores the strength of our platform, the robust demand for our capital, and our dedication to delivering 100% of our earnings back to shareholders,” Richman stated.
Expansion Beyond the Lennar Master Program Agreement
In addition to its dividend announcement, Millrose has reported substantial progress in securing transactions beyond its foundational Lennar Master Program Agreement. Since its spin-off, Millrose has successfully closed approximately $250 million in third-party transactions, achieving yields exceeding 11%. This strong momentum underscores the demand for Millrose’s capital solutions in the homebuilding sector.
Looking forward, the company anticipates closing at least another $100 million in similar transactions within the next 30 days. By the end of 2025, Millrose projects that its total transactions outside of the Lennar Master Program will surpass $1 billion.
To facilitate its accelerated expansion, Millrose is actively collaborating with financial advisors to secure additional financing, ensuring sufficient capital to sustain its growing transaction pipeline.
Earnings Guidance and Future Outlook
Building on its robust transaction pipeline, Millrose has provided earnings per share (EPS) guidance of $0.65 to $0.68 for its second fiscal quarter, ending June 30, 2025. Furthermore, the company expects to achieve a quarterly earnings per share run rate between $0.67 and $0.69 by year-end 2025. This outlook reflects Millrose’s confidence in its business model and sustained growth trajectory.
Millrose’s Innovative Business Model
Millrose Properties, Inc. specializes in purchasing and developing residential land, subsequently selling finished homesites back to homebuilders through option contracts that feature predefined costs and takedown schedules. This unique approach allows homebuilders to implement an asset-light strategy, conserving capital while ensuring a consistent pipeline of developed homesites.
As fully developed homesites are acquired, Millrose efficiently recycles its capital into future land acquisitions. This process ensures that homebuilders maintain uninterrupted access to the financial resources necessary for ongoing residential development. The company’s model is particularly attractive to homebuilders seeking to minimize land-holding risks while maximizing operational efficiency.
Strategic Vision and Growth Trajectory
With its strategic approach to land acquisition and homebuilder partnerships, Millrose is positioned as a leader in the evolving residential construction landscape. By providing homebuilders with an asset-light solution for land development, Millrose facilitates sustained growth while mitigating financial exposure for its clients.
The company’s spin-off from Lennar in early 2025 was a deliberate move to create a distinct, publicly traded entity focused exclusively on homesite option purchasing. This separation enables Millrose to tailor its strategies to the specific needs of homebuilders while maintaining financial independence and operational agility.
Financial Strength and Shareholder Commitment
Millrose’s commitment to returning 100% of its earnings to shareholders underscores its focus on financial transparency and investor value. The declaration of its inaugural dividend serves as a testament to the company’s financial stability and confidence in its business model.
By consistently reinvesting in land acquisitions and transaction growth, Millrose aims to sustain its momentum and deliver strong financial performance in the coming years. The company’s proactive approach to securing additional financing further reinforces its ability to scale operations and meet growing demand.
