Millrose Properties, Inc. · NYSE:MRP
Millrose Properties — Q1 2025 Earnings Presentation
19 slides from Millrose Properties's earnings presentation, May 14, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation May 2025
Slide 2: Disclaimer
Disclaimer This disclaimer applies to this document and the verbal comments of any person presenting it. This presentation, together with any such written comments, is referred to herein as the “Presentation.” Forward-Looking Statements This Presentation relating to Millrose Properties, Inc. (“Millr
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) Basis of Presentation The 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 con
Slide 4: First Quarter 2025 Results
First Quarter 2025 Results ➢ Post-spin GAAP net income of $64.8m, or $0.39 per share, after adjusting for pre-spin allocated expenses ➢ Represents the “stub” period from Millrose’s Spin-Off from Lennar Corporation on February 7, Financial 2025 through March 31, 2025 ➢ Book value per share of $35.40
Slide 5: Q1 2025 Financial Overview
Q1 2025 Financial Overview ➢ $82.7m revenue form Option Fees and Other Related Income ➢ $12.1m Management Fee Expense, with transparent calculation of 1.25% of gross tangible assets ➢ Q1 post-spin GAAP net income of $64.8m1, representing 7.6% return on shareholder equity (annual basis)2 Post-Spin Of
Slide 6: Book Value per Share Roll-Forward
Book Value per Share Roll-Forward ➢ Inaugural dividend of $63.1m, or $0.38 per share ➢ Represents pro-rated portion which would equate to $0.65 per share on a normalized quarterly basis ➢ MRP intends to distribute 100% of earnings back to shareholders Book Value per Share +$0.39 -$0.38 Represents 7.
Slide 7: Conservative Leverage Profile
Conservative Leverage Profile CAPITALIZATION ✓ Millrose is currently ($B) Total Assets Corporate capitalized with $350M of debt $6.6 Debt drawn under its revolving credit facility, on $7.2B of total assets As of 2/10 $1.4 $7.2B $350M $0.0 ✓ Ample liquidity of 1 Assets Liquidity Debt ~$1.1B revolving
Slide 8: Continuous Capital Redeployment Strategy in Action
Continuous Capital Redeployment Strategy in Action Since its inception in February 2025, Millrose has already received $680M in total takedown proceeds ($645M net of deposit) from Lennar as of March 31, 2025. These proceeds, coupled with a $350M drawdown on the revolving credit facility, have been r
Slide 9: Invested Capital by Customer Category
Invested Capital by Customer Category ➢ Strong demand for capital resulting in $987m in land acquisition and development funding in Q1 ➢ $351m in transactions outside of the Lennar Master Program Agreement at yields in excess of 11%, increasing blended portfolio yield to 8.7% ➢ Continue to experienc
Slide 10: Q1 Subsequent Events Update
Q1 Subsequent Events Update • Between April 1st, 2025 and May 9th, 2025, Millrose deployed approximately $130 million outside of the Lennar Master Program Agreement at yields in excess of 11%, resulting in approximately $480 million of such investments since Spin-Off • On May 12th, 2025, New Home Co
Slide 11: Millrose at a Glance
Millrose at a Glance TOP 10 STATES BY ESTIM ATED PLATFORM SNAPSHO T (as of 3/31/2025) TAKEDOWN PROCEEDS Takedown % of Total State Homesites Proceeds ($B) Proceeds 111,181 876 29 1 California 11,031 $ 2.3 20.8 % Current Homesites1 Total Communities1 Total States 2 Texas 25,704 1.7 15.4 3 Florida 14,8
Slide 12: Public Builders Maintain Historically High Margins
Public Builders Maintain Historically High Margins Despite cyclical headwinds, builders have continued to maintain homesite takedowns and flex margins rather than seek option terminations Large Public Homebuilders Average Gross Margins DHI, KBH, LEN, MTH, NVR, PHM, TMHC, TOL Gross Margin Gross Margi
Slide 13: Structural Tailwinds Remain within Housing Industry
Structural Tailwinds Remain within Housing Industry Total Housing Inventory (New Plus Existing) Homebuilder Gross & Net Leverage remains historically low at record lows In thousands Forecast 4,500 90% 4,000 80% 3,500 70% 3,000 60% 2,500 LT Avg. 50% 2,000 40% 1,500 30% 1,000 15% 20% 500 10% 6% - 0% 1
Slide 14: Appendix
MILLROSE PROPERTIES Appendix 2
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet March 31, December 31, 2025 2024 Assets Inventories Homesite inventory and other related assets $ 6,998,924 $ - Land and land other development - 2,978,807 Finished homesites - 2,486,483 Total inventories 6,998,924 5,465,290 Cash 89,523 - Option fee receivables 47,206 - Ot
Slide 16: Consolidated Statements of Operations
Consolidated Statements of Operations Three months ended March 31, 2025 2024 Option fee revenues and other related income $ 82,698 $ - Operating expenses: Management fee expense 12,104 - Sales, general, and administrative expenses from pre-spin period 24,960 56,987 Total operating expenses 37,064 56
Slide 17: Asset Cross-Termination Pooling
Asset Cross-Termination Pooling Lennar Master Other Terminated Program Agreement Agreements Options Total Number of Homesites (1) 109,574 1,607 - 111,181 Number of Pools 32 n/a (2) - 32 Average Number of Properties per Pool 27.0 n/a (2) - 27 Invested Capital (in billions) (3) 6.4 0.3 - 6.7 Total Pro
Slide 18: Asset List – By State
Asset List – By State Number of Number of Underlying Total Takedown State Location Properties Homesites (1) Prices Alabama 49 5,241 352,255 Arizona 27 3,181 325,314 Arkansas 51 4,633 308,935 California 53 11,031 2,271,678 Colorado 18 2,737 387,943 Delaware 9 992 162,435 Florida (2) 135 14,878 1,258,
Slide 19: Invested Capital Reconciliation
Invested Capital Reconciliation Three months ended March 31, 2025 Lennar Master Other (in thousands) Agreement Agreements Total Invested Capital Reconciliation of GAAP to Non-GAAP GAAP reported Homesite inventory and other related assets $ 6,611,624 $ 387,300 $ 6,998,924 Adjustments: Remove: Net def