Lennar Corporation · NYSE:LEN
Lennar — Lennar Corp /New/ — Merger or Acquisition (October 2025)
46 slides from Lennar's merger presentation, Oct 27, 2025
Slide 1: Disclaimer
DisclaimerThis disclaimer applies to this document and the verbal comments of any person presenting it. This presentation, together with any such oral or written comments, is referred to herein as the “Presentation.”Forward-Looking StatementsThis Presentation contains certain statements about Lennar
Slide 2: Disclaimer (Cont'd)
Disclaimer (Cont’d)Basis of PresentationThe financial information presented herein (i) for the periods prior to the February 7, 2025 spin-off from Lennar (the “Spin-Off”) is that of the business assets that were spun off to Millrose (the “Predecessor Millrose Business”) and is derived from the conso
Slide 3: Presenters
PresentersDarren Richman Rob Nitkin Garett RosenblumCEO & President COO CFO and Treasurer
Slide 4: Traditional Homebuilding Model Anchored to a Land Heavy Structure
Traditional Homebuilding Model Anchored to a Land Heavy StructureLegacy Homebuilding ModelLand Investment PropositionAsset intensive business model driven by significant investment in land inventory High capital investment, low Balance sheet is dominated by land assets returns Company valuation domi
Slide 5: Separation of Land and Homebuilding Creates Two Attractive, Distinct Investment Propositions
Separation of Land and Homebuilding Creates Two Attractive, Distinct Investment PropositionsHOMESITE DEVELOPMENT HOMEBUILDINGPay horizontal Construct development costs home Acquire Deliver finished finished homesite Market homesite home Receive Deliver Acquiredeposit The Millrose The Modern and Solu
Slide 6: Kennedy Lewis Partnership is a Competitive Advantage
Kennedy Lewis Partnership is a Competitive AdvantageKennedy Lewis’ industry experience, homebuilder relationships, and streamlined origination and screening process are key to Millrose’s future successKennedy Lewis has substantial experience operating investment vehicles and executing on homebuilder
Slide 7: Millrose Business Separation Transaction
Millrose Business Separation Transaction On February 7th, 2025, Lennar Corporation (NYSE:LEN) (“Lennar”) completed the Spin-Off of the Predecessor Millrose Business from Lennar, which was effectuated by the distribution of approximately 80% of the outstanding shares of Millrose common stock to holde
Slide 8: Table of Contents
Table of ContentsIntroduction to Millrose 01 Key Investment Highlights 02 Appendix A: Financial ResultsAppendix B: Supplemental Information
Slide 9: Table of Contents
Table of Contents Introduction to Millrose Key Investment Highlights Appendix A: Financial Results Appendix B: Supplemental Information MILLROSE 01 02 For Institutional Use Only 9
Slide 10: Millrose at a Glance
Millrose at a GlanceTOP 10 STATES BY ESTIMATED PLATFORM SNAPSHOT (as of 9/30/2025) TAKEDOWN PROCEEDSTakedown % of Total State Homesites Proceeds ($B) Proceeds138,691 876 30 1 California 12,646 $ 3.0 19.7 %Current Homesites1 Total Communities1 Total States 2 Texas 36,939 2.8 18.43 Florida 19,456 1.9
Slide 11: Millrose's Homesite Option Purchase Platform (HOPP'R) is Designed to Efficiently Recycle Capital
Millrose’s Homesite Option Purchase Platform (“HOPP’R”) is Designed to Efficiently Recycle CapitalLand Land Homesite Homesite Proceeds Identified Purchased Developed Delivered RecycledLand selected Millrose Millrose funds Homebuilder Millrose recycles and vetted by purchases land homebuilder land pu
Slide 12: Millrose's Transaction Flow is Simple and Easy to Understand
Millrose’s Transaction Flow is Simple and Easy toUnderstand INCOME STATEMENT BALANCE SHEETHomebuilder HomebuilderOption Fee Rate X Investment BalanceMillrose Revenue Property Finished Acquisition & – Management Fee1 Homesite SaleDevelopment Millrose EBITDA Funding+$– Interest Expense -$ Pre-Tax Inco
Slide 13: Key Investment Highlights
02 Key Investment Highlights
Slide 14: Millrose: A Self-Financing Recycled Capital Solution Provider for Homebuilders and Land Development Companies
Millrose: A Self-Financing Recycled Capital Solution Provider for Homebuilders and Land Development Companies1 Largest and only category defining REIT focused on the housing sector with no direct peers2 Significant industry tailwinds from national housing shortage and homebuilders as sector further
Slide 15: Millrose | The Next Evolution of Homebuilder Land Strategy
Millrose | The Next Evolution of Homebuilder Land StrategySelf-funding capital vehicle offers a consistent source of “just-in-time” inventory for homebuildersRecurring monthly option fee payments and continuous capital generation from takedownsA “First-of-its-Kind” Innovation to Support the Acquisit
Slide 16: First-of-its-Kind REIT Platform
First-of-its-Kind REIT PlatformToday, Millrose has no direct publicly traded comparablePublic Land Commercial / Residential Development Companies Mortgage REITs Recurring revenue stream Real estate cycle resiliencyFast, organic cash generation from shorter turns Minimal entitlement risk and quick pa
Slide 17: Structural Tailwinds Remain within Housing Industry
Structural Tailwinds Remain within Housing IndustryTotal Housing Inventory (New Plus Existing) Homebuilder Gross & Net Leverage remains historically low at record lows thousandsForecast4,500 90% 4,000 80% 3,500 70%3,000 60%LT Avg.2,500 50% 2,000 40% 1,500 30%1,000 20% 17% 500 10% 7% - 0%1985 1990 19
Slide 18: New Home Inventory is Beginning to Recalibrate as Builders Exhibit Production Discipline
New Home Inventory is Beginning to Recalibrate as Builders Exhibit Production DisciplineBuilders are adjusting to market conditions with Single family housing starts have moderated units under construction fallingIn thousands In thousands1,400 425 1,300 400 1,200 375 1,100 3501,000 325 900 300 800 2
Slide 19: Public Builder Market Share Growth Coincides with the Growth of Land Banking
Public Builder Market Share Growth Coincides with the Growth of Land BankingPublic Builder Lot Positions vs. Public Builder Market Share2,400,000 50%2,200,0002,000,00045% 1,800,000 led1,600,000 Share 40% Control 1,400,000/ Market Owned 1,200,000 1,000,000 Builder Lots 35% Total 800,000 Public600,000
Slide 20: Public Builders Maintain Historically High Margins
Public Builders Maintain Historically High MarginsDespite cyclical headwinds, builders have continued to maintain homesite takedowns and flex margins rather than seek option terminationsLarge Public Homebuilders Average Gross MarginsDHI, KBH, LEN, MTH, NVR, PHM, TMHC, TOL Gross Margin Gross Margin T
Slide 21: Methodical & Disciplined Growth with New Customers Leads to Organic Increase in Margin
Methodical & Disciplined Growth with New Customers Leads to Organic Increase in MarginIn addition to Millrose’s ongoing relationship with Lennar, Kennedy Lewis is strategically expanding Millrose’s customer base to other homebuilders and 3rd party developers, organically increasing the Company’s mar
Slide 22: Millrose's Sizeable Total Addressable Market
Millrose’s Sizeable Total Addressable MarketMillrose is an Attractive Solution for Industry PlayersMILLROSE’S ANNUAL TOTAL MARKET OPPORTUNITYTop 10 homebuilders2 Remaining public / private homebuilders 2 Highly transparent institutional public platform Lower cost than traditional alternatives~$170B+
Slide 23: Capital Solution For Homebuilders Of All Sizes
Capital Solution For Homebuilders Of All Sizes (Benefits to Homebuilders)Ability to frictionlessly underwrite transactions and provide land banking Ease of Operations management solutions in real-time using the HOPP’RLiquidity to Fund Balance sheet consisting of ~$8.7B1 of land assets and ~$1.6B liq
Slide 24: Continuous Capital Redeployment Strategy in Action
Continuous Capital Redeployment Strategy in Action Millrose received $893M1 in total takedown proceeds ($852M2 net of deposit) for the quarter ended September 30, 2025. These proceeds, coupled with $975M net borrowings, have been redeployed into new acquisitions with Lennar and other customersMajori
Slide 25: Invested Capital by Customer Category
Invested Capital by Customer Category Strong demand for the platform, resulting in $1.6B in land acquisition and development funding in Q3 2025 Outside of the Lennar Master Agreement, Invested Capital increased $683m to $1,817m Total weighted average yield increased 20bps QoQKey Portfolio Metrics Le
Slide 26: Conservative Leverage Profile & Financial Policy
Conservative Leverage Profile & Financial Policy CAPITALIZATION Millrose is currentlyTotal Assets Corporate capitalized with($B) $2.0B SeniorDebt Notes, on $9.0B of$8.0 total assetsAs of 6/30 $9.0B $2.0B Ample liquidity of$1.1 ~$1.6B revolving$1.0credit facilityAssets Liquidity1 Debt capacity and ca
Slide 27: Carefully Structured to be Resilient to Volatility
Carefully Structured to be Resilient to VolatilityMillrose’s HOPP’R has been developed and refined to minimize entitlement risk and focus on short-duration inventory turns with enhanced structural protectionsIDENTIFIED RISK MILLROSE MITIGANT Assets’ duration limits Millrose’s Assets are intended to
Slide 28: Margin of Safety from a Downward Movement in Home Prices
5 Margin of Safety from a Downward Movement in Home PricesMillrose’s business model is not dependent on home price appreciationFurthermore, Millrose’s “margin of safety” is principally derived from a homebuilder’s option deposit and anticipated profitIn the event of a material shift in home price va
Slide 29: Seasoned Leadership Team with Extensive Track Record Providing Capital Solutions to Homebuilders
6 Seasoned Leadership Team with Extensive Track Record Providing Capital Solutions to HomebuildersMillrose’s management team has extensive experience sourcing, underwriting, capitalizing and financing land and home builder finance investmentsDarren L. Richman Robert Nitkin Garett Rosenblum Rachel Pr
Slide 30: Kennedy Lewis' Technology Platform is a Unique Competitive Edge
6 Kennedy Lewis’ Technology Platform is a UniqueCompetitive EdgeProprietary platform for high-volume, complex transaction processing, with data capture that drives smarter, more informed decisions in real timeScale Volume139k homesite ~2,000+ monthly across 30 states transactionsComplexityVelocity $
Slide 31: Appendix A: Financial Results
Appendix A: Financial Results
Slide 32: Third Quarter 2025 Results
Third Quarter 2025 Results Net income of $105.1m, or $0.63 per share. Net income was impacted by the accelerated payoff of the delayed draw term loan and other expenses related to our recent debt issuance Adjusted Funds From Operations (AFFO)1 of $122.5m, or $0.74 per shareFinancial Increase of $0.0
Slide 33: Q3 2025 Financial Overview
Q3 2025 Financial Overview $179m revenue from Option Fees and Development Loan Income $25.9m Management Fee Expense, with transparent calculation of 1.25% of gross tangible assets Q3 GAAP net income of $105.1m, and AFFO1 of $122.5m, or $0.74 per shareSeptember 30, 2025Option Fee & Other Related Inco
Slide 34: Book Value per Share Roll-Forward
Book Value per Share Roll-Forward Quarterly dividend of $121.2m, or $0.73 per share Annualized dividend yield increased 40bps compared to prior quarter MRP intends to distribute 100% of earnings back to shareholdersBook Value per ShareAFFO1 Adjustments+$0.11+$0.63 -$0.73Net Income per shareRepresent
Slide 35: Consolidated Balance Sheet
Consolidated Balance SheetSeptember 30, December 31, 2025 2024 Assets Inventories Homesite inventory $ 8,360,431 $ - Land and land under development - 2,978,807 Finished homesites - 2,486,483 Total inventories 8,360,431 5,465,290 Development loan receivables, net 340,401 - Cash 242,578 - Option fee
Slide 36: Consolidated Statements of Operations
Consolidated Statements of OperationsThree months ended Nine months ended September 30, September 30, 2025 2024 2025 2024 Revenues: Option fee revenues $ 170,326 $ - $ 391,491 $ - Development loan income 8,934 - 19,469 - Total revenues 179,260 - 410,960 - Operating expenses: Management fee expense 2
Slide 37: Adjusted Funds From Operations - Reconciliation
Adjusted Funds From Operations - ReconciliationThree months ended (in thousands) September 30, 2025 Net income attributable to Millrose Properties, Inc. common shareholders $ 105,060 Adjustments: Add: Amortization of deferred financing and issuance costs (1) 16,359 Add: Rating agency expenses (2) 55
Slide 38: Invested Capital Reconciliation
Invested Capital ReconciliationMaster Program (in thousands) Agreement Other Agreements Total Invested Capital Reconciliation of GAAP to Non-GAAP GAAP reported homesite inventory as of September 30, 2025 $ 6,656,117 $ 1,704,314 $ 8,360,431 Adjustments: Add: Development loan receivables - 340,401 340
Slide 39: Appendix B: Supplemental Information
Appendix B: Supplemental Information
Slide 40: Mechanics of Land Banking
Mechanics of Land BankingClosing conditions to enter into Homebuilder assigns rights (“Assignment Agreement”) to Land land banking contract:Banker when land option or purchase contract is executed Concurrently, Land Banker grants Homebuilder an option to All discretionary entitlements received purch
Slide 41: How Does Millrose Work?
How Does Millrose Work?Millrose is a vehicle that purchases residential land and sells finished homesites back to homebuilders at a predetermined cost and takedown schedule under an option contractLand Homesite Land Purchase Development AcquisitionMillrose purchases and holds title to Builder will:
Slide 42: Millrose's Economic Model is Focused on Delivering Current Income and Predictable Cash Flows
Millrose’s Economic Model is Focused on DeliveringCurrent Income and Predictable Cash FlowsMonthly Option Fee Payment Homebuilder Initial DepositMillrose acquires the property Millrose repaid through Homebuilder’s scheduled on behalf of Homebuilder, homesite takedown homesite purchases less the init
Slide 43: Overview of Master Program Agreement Between Lennar and Millrose
Overview of Master Program Agreement Between Lennar and MillroseU.S. Home, Lennar Homes Holding, CalAtlantic and Millrose entered into the Master Program Agreement to implement the HOPP’R, and the terms of such agreement which governs how the supplemental transferred assets and future property asset
Slide 44: Overview of Master Option Agreement Between Lennar and Millrose
Overview of Master Option Agreement Between Lennar and MillroseThe Master Option Agreement between Lennar, U.S. Home, Lennar Homes Holding, CalAtlantic, Millrose and Millrose Holdings sets forth the terms and provisions relating to Lennar’s purchase option, including terms relating to Lennar’s optio
Slide 45: Millrose's Innovative REIT Structure Ensures its HOPP'R Translates Into a Tax-efficient, Income-generating Asset
Millrose’s Innovative REIT Structure Ensures its HOPP’RTranslates Into a Tax-efficient, Income-generating Asset Land Banking as a REIT-qualified asset classMillrose is structured Shareholders as a REIT with a Kennedy Lewis wholly-owned taxable (Manager)DividendsREIT subsidiary Millrose Properties, I
Slide 46: Millrose's Innovative REIT Structure Ensures its HOPP'R Translates Into a Tax-efficient, Income-generating Asset
Millrose’s Innovative REIT Structure Ensures its HOPP’R Translates Into a Tax-efficient, Income-generating Asset Land Banking as a REIT-qualified asset class > Millrose is structured as a REIT with a wholly-owned taxable REIT subsidiary (TRS’) > TRS enters into purchase option agreements with homebu
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