10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-42476

Millrose Properties, Inc.

(Exact name of registrant as specified in its charter)

Maryland	99-2056892
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
600 Brickell Avenue, Suite 1400 Miami, Florida	33131
(Address of principal executive offices)	(Zip Code)

(212) 782-3841

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Ticker Symbol	Name of each exchange on which registered
Class A common stock, par value $0.01 per share	MRP	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of Class A common stock outstanding as of July 30, 2025: 154,183,686

The number of Class B common stock outstanding as of July 30, 2025: 11,819,811

TABLE OF CONTENTS

		Page
PART I FINANCIAL INFORMATION
GLOSSARY OF DEFINED TERMS		1
FORWARD-LOOKING STATEMENTS		4
Item 1.	Financial Statements	6
	Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024	6
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and June 30, 2024	7
	Condensed Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2025 and June 30, 2024	8
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and June 30, 2024	9
	Notes to the Condensed Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	40
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	42
	SIGNATURES	43

i

GLOSSARY OF DEFINED TERMS

In this Quarterly Report on Form 10-Q (this “Form 10-Q”), the following terms and abbreviations have the meanings listed below.

AFFO means the adjusted funds from operations, which are calculated as the net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate depreciation, adjusted to eliminate the impact of non-recurring items that are not reflective of ongoing operations and certain non-cash items that reduce or increase net income (loss) in accordance with GAAP, and also adjusted for income tax expense (other than income tax expenses of our TRS) that will not be incurred following our election and qualification to be subject to tax as a REIT for U.S. federal income tax purposes.

Future Property Assets means any Homesites, prospective Homesites, properties or other related land assets that Millrose (through Millrose Holdings, the Property LLCs and subsidiaries other than Millrose Holdings and the Property LLCs (the “Other Subsidiaries”) may (i) acquire in the future pursuant to the Lennar Agreements or (ii) acquire in the future pursuant to any agreements that Millrose or its subsidiaries may negotiate and enter into with Lennar (outside of the Lennar Agreements), any Lennar Related Ventures or Other Customers, respectively, in the future.

GAAP means generally accepted accounting principles in the United States.

Homesite means land inventory that has all discretionary approvals and entitlements necessary to allow Horizontal Development to begin soon after the acquisition of the land, including (i) subdivided and fully developed land inventory on which homes may be built and (ii) subdivided or non-subdivided land inventory undergoing necessary Horizontal Development and subdivision so that homes may be built on them.

HOPP’R means Lennar’s Homesite Option Purchase Platform, a comprehensive suite of systems and procedures that Lennar developed to operate and manage the acquisition, financing and development of land assets on a large scale, licensed to Millrose under the HOPP’R License Agreement, dated as of February 7, 2025, by and between Millrose and a wholly owned subsidiary of Lennar.

Horizontal Development means any work relating to the installation of utilities and infrastructure required to obtain a building permit for the construction of a residence, including drainage, sewage, water lines, roads, sidewalks, utility lines, grading and landscaping. Sometimes such infrastructure can also include the construction of recreational facilities, common area elements and other amenities. Horizontal Development is work that must be done prior to home construction, as it lays the groundwork for building homes.

Land Under Development means land for which all discretionary entitlements, including all permits and approvals, have been received, and surveys and planning have been completed, and Horizontal Development is already underway, which must be substantially completed before home construction can begin, as further described in “Part I, Item 2. Properties—Description of the Transferred Assets and the Supplemental Transferred Assets—Geography, Value and Types of Transferred Assets and the Supplemental Transferred Assets” in the Form 10-K.

Lennar Agreements means the Master Program Agreement, Master Option Agreement, Master Construction Agreement, Multiparty Cross Agreements, Founder’s Rights Agreement, Registration Rights Agreement, each entered into on February 7, 2025 in connection with the Spin-Off and other agreements which Lennar or its subsidiaries and Millrose or Millrose Holdings may enter into from time to time in connection with Millrose’s (including Millrose Holdings) provision of the Recycled Capital HOPP’R to Lennar and/or that govern Lennar’s ongoing relationship with Millrose.

Lennar Related Ventures means any residential home construction or real estate development companies in the United States (i) in which Lennar has any amount of ownership interests or (ii) with which Lennar has any contractual business relationship, in each case, that is referred by Lennar to Millrose as a HOPP’R customer.

Master Construction Agreement means the Master Construction Agreement, dated as of February 7, 2025, by and between Millrose, Millrose Holdings and U.S. Home LLC, as described in “Part III, Item 13. Certain Relationships and Related Transactions, and Director Independence—Transactions with Lennar—Master Construction Agreement” in the Form 10-K, as supplemented by any terms and provisions contained in any Project Addenda.

Master Option Agreement means the Master Option Agreement, dated as of February 7, 2025, by and between Millrose, Millrose Holdings and U.S. Home LLC, as described in “Part III, Item 13. Certain Relationships and Related Transactions, and Director Independence—Transactions with Lennar—Master Option Agreement” in the Form 10-K, as supplemented by any terms and provisions contained in any Project Addenda.

1

Master Program Agreement means the Master Program Agreement, dated as of February 7, 2025, by and between Millrose and U.S. Home LLC, as described in “Part III, Item 13. Certain Relationships and Related Transactions, and Director Independence—Transactions with Lennar—Master Program Agreement” in the Form 10-K, as supplemented by any terms and provisions contained in any Project Addenda.

Other Agreements means any transaction agreements, other than the Lennar Master Program Agreement, including those entered into from time to time with Other Customers and other agreements which Other Customers and the Company may enter into from time to time in connection with the Company’s provision of the Recycled Capital HOPP’R to Other Customers and/or that govern Other Customers’ ongoing relationship with Millrose, and any entered into with Lennar on terms different than those of the Master Program Agreement.

Other Customers means any residential home construction or real estate development companies in the United States, excluding Lennar and any Lennar Related Ventures, that enter into agreements or other arrangements with Millrose (through any Other Subsidiaries) to use the HOPP’R.

Predecessor Millrose Business means the business operations, including revenues and expenses, liquidity and capital resources, cash flows, balance sheet, statements of income and other information of Millrose prior to the Spin-Off, as derived from the financial statements of Lennar, since Millrose had no operations (or operating subsidiaries) of its own prior to the Spin-Off.

Project Addendum means any Project Addendum, pursuant to which Millrose (through Millrose Holdings or any of its subsidiaries) and Lennar may subject any Transferred Assets, Supplemental Transferred Assets or Future Property Assets to the terms and provisions of the Master Program Agreement, the Master Option Agreement and the Master Construction Agreement.

Property LLC includes all of our LLC subsidiaries that hold the Transferred Assets, the Supplemental Transferred Assets and any Future Property Assets through which Millrose Holdings provides the HOPP’R to Lennar, including as the context requires, (i) immediately following the Spin-Off, all of the 31 LLC subsidiaries of Millrose Holdings (“Initial Property LLCs”) and (ii) immediately following the Supplemental Transferred Assets Transaction, the 18 LLC subsidiaries of Millrose RCH Landco Ltd. (the “Supplemental Property LLCs”) and the Initial Property LLCs and (iii) thereafter, the Initial Property LLCs, the Supplemental Property LLCs and any additional LLC subsidiaries formed for the purposes of any Future Property Assets.

Recycled Capital HOPP’R means the Homesite Option Purchase Platform, as adjusted and refined to be used as a self-financing reliable land acquisition and Horizontal Development solution intended to provide home builders with (i) access to lower or competitive cost of capital on an ongoing “recycled” basis and (ii) more certainty about having reliable, consistent and uninterrupted access to capital, through both periods of strong market conditions and periods of market downturn or continued periods of weakened market conditions, subject to the assumptions detailed in our Form 10-K.

REIT means a real estate investment trust for the U.S. federal income tax purposes.

Spin-Off means the partial, taxable spin-off of Millrose Properties, Inc., a previously wholly-owned subsidiary of Lennar, that was effected by distributing approximately 80% of the outstanding shares of Millrose common stock to holders of Lennar common stock on February 7, 2025.

Supplemental Transferred Assets means all the Homesites and prospective Homesites acquired by Millrose in connection with the Supplemental Transferred Assets Transaction, using approximately $859 million of the cash contributed by Lennar to Millrose in connection with the Spin-Off as consideration. The Supplemental Transferred Assets included all of the land assets of Rausch Coleman Companies, LLC (“Rausch”) (except for any Homesites with homes actively under construction).

Supplemental Transferred Assets Transaction means the transaction between Millrose and Rausch, pursuant to which Millrose acquired the Supplemental Transferred Assets (through an acquisition of 100% of the stock of RCH Holdings, Inc., a newly formed parent holding company of Rausch) following the Spin-Off.

Takedown Price means the total amount to be paid by Lennar to Millrose Holdings to exercise its purchase option with respect to the Transferred Assets, the Supplemental Transferred Assets or any Future Property Assets, which shall be negotiated between the parties with respect to each property and set forth in the applicable Project Addendum. Where applicable,

2

“Takedown Price” may also mean this same concept, but as negotiated and used by or for (or in the context of agreements with) any Lennar Related Ventures or Other Customers.

Transferred Assets means the current and future Homesite inventory described in “Part I, Item 2. Properties” in the Form 10-K other than the descriptions about Supplemental Transferred Assets and Future Property Assets.

TRS means a taxable REIT subsidiary, which is a fully taxable corporation that has jointly elected with the parent REIT to be treated as a taxable REIT subsidiary, defined under section 856 of the Internal Revenue Code of 1986, as amended (the “Code”).

3

FORWARD-LOOKING STATEMENTS

This Form 10-Q contains forward-looking statements including, in particular, statements about Millrose Properties, Inc.’s (“Millrose,” and, together with its subsidiaries (unless the context otherwise requires), the “Company,” “we,” “us” or “our”) plans, strategies and objectives, as well as statements about Millrose’s business (including Millrose Properties Holdings, LLC (“Millrose Holdings”) and any of the other Millrose subsidiaries), and Millrose’s future plans, strategies and objectives. You can generally identify forward-looking statements by our use of forward-looking terminology such as “may,” “can,” “shall,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar words or the negatives thereof intended to identify forward-looking statements. However, not all forward-looking statements contain these identify words. Specific forward-looking statements in this Form 10-Q include statements regarding:

•Millrose’s plans and objectives for future operations, including plans and objectives relating to future growth of our business and the HOPP’R;

•the availability of capital at any given time to finance the various endeavors, projects and acquisitions that are expected or planned for Millrose, as well as the availability of capital that needs to be reserved for specified uses (whether contractually or by law);

•expectations about the quality and value of our Homesites and the existence of any liabilities attached to the Homesites, and the adequacy of the protection, including of Lennar Corporation’s (“Lennar”) indemnification of Millrose in connection with the Supplemental Transferred Assets Transaction;

•expectations and assumptions around our ongoing relationship with Lennar, including expectations that Lennar will fully perform on all its obligations pursuant to the Lennar Agreements (and that there will be regular and timely exercises of its purchase options) and expectations that it will continue to provide us with ongoing transactions pursuant to the Master Program Agreement and refer Lennar Related Ventures who may be interested in the HOPP’R to us as potential new customers;

•Lennar’s expected business, operations and financial position;

•the possibility of providing the HOPP’R to future new customers, including Lennar Related Ventures and Other Customers, and the nature of any such future arrangements;

•the planned use, development and sales of the Transferred Assets and the Supplemental Transferred Assets;

•any expected acquisitions, uses, development and sales of Future Property Assets;

•expectations and assumptions around our relationship with our Manager, an affiliate and wholly-owned subsidiary of Kennedy Lewis Investment Management LLC;

•our status as a REIT and Millrose Holdings’ expected status as a TRS;

•our status as an emerging growth company;

•expectations around ownership limits of our Class A and Class B common stock (collectively, “common stock”); and

•expectations and assumptions around our source of revenues, expected income, ability to secure financing or incur and repay indebtedness, and ability to comply with restrictions contained in our debt covenants.

Assumptions relating to these statements involve judgments with respect to, among other things, future macroeconomic, competitive and market conditions, future land values, future business decisions, future environmental conditions and relationships with our customers, all of which are difficult or impossible to accurately predict and many of which are beyond our control. All forward-looking statements included herein are based on information available to us as of the date hereof and speak only as of such date. The forward-looking statements contained in this Form 10-Q reflect our views as of the date of this Form 10-Q about future events and are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ significantly from those expressed or implied in any forward-looking statement. Although we believe the assumptions underlying the forward-looking statements, and the forward-looking statements themselves, are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that these forward-looking statements will prove to be accurate, and our actual results, performance and achievements may be materially different from that expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans, which we consider to be reasonable, will be achieved.

4

Investing in our common stock involves a high degree of risk. You should carefully review “Part I, Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (“SEC”) on March 31, 2025 (the “Form 10-K”) for a discussion of the risks and uncertainties that we believe are material to our business, operating results, prospects and financial condition. Except as otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

5

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

PRESENTATION OF FINANCIAL AND OPERATING DATA

Unless otherwise indicated, the financial information presented prior to the February 7, 2025 Spin-Off (as defined below) in this Form 10-Q is that of Lennar Corporation (“Lennar”, or the “Predecessor”).

Millrose Properties, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in thousands, except share amounts)

	June 30,			December 31,
	2025			2024
Assets
Inventories
Homesite inventory and other related assets	$	7,845,178		$	-
Land and land under development		-			2,978,807
Finished homesites		-			2,486,483
Total inventories		7,845,178			5,465,290
Cash		66,575			-
Option fee receivables		46,635			-
Other assets		15,258			-
Total assets		7,973,646			5,465,290
Liabilities and stockholders' equity
Accounts payable and accrued expenses		-			282,730
Builder deposits		799,562			-
Debt obligations, net		1,011,162			24,188
Development guarantee holdback liability		100,000			-
Deferred tax liabilities		56,913			-
Other liabilities		131,760			-
Total liabilities		2,099,397			306,918
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		-			-
Class A common stock, $0.01 par value, 275,000,000 shares authorized, 154,183,686 shares issued at June 30, 2025		1,542			-
Class B common stock, $0.01 par value, 175,000,000 shares authorized, 11,819,811 shares issued at June 30, 2025		118			-
Predecessor equity		-			5,158,372
Additional paid-in capital		5,872,687			-
Retained earnings		(98	)		-
Total stockholders' equity		5,874,249			5,158,372
Total liabilities and stockholders' equity	$	7,973,646		$	5,465,290

See Notes to the unaudited Condensed Consolidated Financial Statements.

6

Millrose Properties, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in thousands, except share amounts)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			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			-			9,148			-
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 of Class A and Class B Common Stock	$	0.68		$	-		$	1.07		$	-
Diluted earnings per share of Class A and Class B Common Stock	$	0.68		$	-		$	1.07		$	-
Basic weighted average common shares outstanding of Class A and Class B Common Stock (1)		166,003,497			-			166,003,497			-
Diluted weighted average common shares (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.

See Notes to the unaudited Condensed Consolidated Financial Statements.

7

Millrose Properties, Inc.

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(Dollars in thousands, except share amounts)

	Three Months Ended June 30, 2025
	Class A Common Stock				Class B Common Stock				Preferred Stock				Additional Paid			Retained			Pre-Spin Predecessors			Total Stockholders'
	Shares		Amount		Shares		Amount		Shares		Amount		In Capital			Earnings			Equity			Equity
Balance at March 31, 2025		154,183,686	$	1,542		11,819,811	$	118		-	$	-	$	5,872,506		$	1,685		$	-		$	5,875,851
Net income (loss)		-		-		-		-		-		-		-			112,760			-			112,760
Common stock issued		-		-		-		-		-		-		-			-			-			-
Stock-based compensation		-		-		-		-		-		-		181			-			-			181
Dividends declared		-		-		-		-		-		-		-			(114,543	)		-			(114,543	)
Stockholders' Equity at June 30, 2025		154,183,686	$	1,542		11,819,811	$	118		-	$	-	$	5,872,687		$	(98	)	$	-		$	5,874,249
	Three Months Ended June 30, 2024
	Class A Common Stock				Class B Common Stock				Preferred Stock				Additional Paid			Retained			Pre-Spin Predecessors			Total Stockholders'
	Shares		Amount		Shares		Amount		Shares		Amount		In Capital			Earnings			Equity			Equity
Balance at March 31, 2024		-	$	-		-	$	-		-	$	-	$	-		$	-		$	4,242,853		$	4,242,853
Loss		-		-		-		-		-		-		-			-			(59,761	)		(59,761	)
Stock-based compensation		-		-		-		-		-		-		-			-			1,705			1,705
Contribution to Predecessor		-		-		-		-		-		-		-			-			(415,643	)		(415,643	)
Stockholders' Equity at June 30, 2024		-	$	-		-	$	-		-	$	-	$	-		$	-		$	3,769,154		$	3,769,154
	Six Months Ended June 30, 2025
	Class A Common Stock				Class B Common Stock				Preferred Stock				Additional Paid			Retained			Pre-Spin Predecessors			Total Stockholders'
	Shares		Amount		Shares		Amount		Shares		Amount		In Capital			Earnings			Equity			Equity
Balance at December 31, 2024		-	$	-		-	$	-		-	$	-	$	-		$	-		$	5,158,372		$	5,158,372
Net income (loss)		-		-		-		-		-		-		-			177,526			(24,960	)		152,566
Adjustment for expenses from pre-spin periods		-		-		-		-		-		-		-			-			24,960			24,960
Common stock issued, Spin-Off		120,983,633		1,210		11,819,811		118		-		-		(1,328	)		-			-			-
Common stock retained by Lennar at Spin-Off		33,200,053		332		-		-		-		-		(332	)		-			-			-
Contribution 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	)
Stockholders' Equity at June 30, 2025		154,183,686	$	1,542		11,819,811	$	118		-	$	-	$	5,872,687		$	(98	)	$	-		$	5,874,249
	Six Months Ended June 30, 2024
	Class A Common Stock				Class B Common Stock				Preferred Stock				Additional Paid			Retained			Pre-Spin Predecessors			Total Stockholders'
	Shares		Amount		Shares		Amount		Shares		Amount		In Capital			Earnings			Equity			Equity
Balance at December 31, 2023		-	$	-		-	$	-		-	$	-	$	-		$	-		$	4,458,961		$	4,458,961
Loss		-		-		-		-		-		-		-			-			(116,748	)		(116,748	)
Stock based compensation		-		-		-		-		-		-		-			-			8,863			8,863
Contributions to Predecessor		-		-		-		-		-		-		-			-			(581,922	)		(581,922	)
Stockholders' Equity at June 30, 2024		-	$	-		-	$	-		-	$	-	$	-		$	-		$	3,769,154		$	3,769,154

See Notes to the unaudited Condensed Consolidated Financial Statements.

8

Millrose Properties, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

	Six months ended June 30,
		2025			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			-			-
Cash at end of period		$	66,575		$	-
Supplemental disclosures of non-cash investing and financing activities
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			-

See Notes to the unaudited Condensed Consolidated Financial Statements.

9

Millrose Properties, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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).

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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.

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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.

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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.

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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.

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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

15

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.

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.

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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.

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.

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.

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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.

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.

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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.

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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.

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.

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:

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	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.

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.

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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.

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.

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

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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.

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.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following Management’s Discussion and Analysis of Financial Condition and Results of Operations in conjunction with our accompanying unaudited condensed consolidated financial statements and the notes thereto included in “Part I, Item 1. Financial Statements” in this Form 10-Q and the audited combined financial statements of the Predecessor Millrose Business and the notes thereto included in the Form 10-K. Some of the information contained in this discussion and analysis constitutes forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this Form 10-Q, particularly under the section titled “Cautionary Statement Concerning Forward-Looking Statements.” The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those made, projected, or implied in the forward-looking statements. See the sections titled “Part I, Item 1A. Risk Factors” in our Form 10-K and “Part II, Item 1A. Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” herein for a discussion of the risks, uncertainties, and assumptions associated with these statements.

As further described in Note 1. Description of Business to our unaudited condensed consolidated financial statements included in “Part I, Item 1. Financial Statements” of this Form 10-Q, we completed the Spin-Off from Lennar on February 7, 2025. The financial information presented herein (i) for the periods prior to the February 7, 2025 Spin-Off is that of the Predecessor Millrose Business and is derived from the consolidated financial statements and accounting records of Lennar, and (ii) for the periods after the February 7, 2025 Spin-Off is that of Millrose and its subsidiaries. Millrose was formed on March 19, 2024 and has operated as an independent company since the Spin-Off on February 7, 2025.

Our Business

Millrose is a corporation incorporated under the laws of the State of Maryland on March 19, 2024. Our Company was formed in connection with the Spin-Off from Lennar to create an independent, publicly traded company that provides the HOPP’R to Lennar, Lennar Related Ventures and Other Customers. Millrose purchases and develops residential land and sells finished homesites back to homebuilders by way of option contracts with predetermined costs and takedown schedules. In certain instances, Millrose may extend development to vertical construction on owned homesites, with any such funding similarly repaid via scheduled sales to homebuilders. Millrose intends its “first of its kind” public vehicle to be attractive to homebuilders seeking to implement an asset-light strategy. 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 our subsidiaries, we hold 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. We are externally managed and advised by Kennedy Lewis Land and Residential Advisors LLC (“KL” or the “Manager”), pursuant to the Management Agreement between Millrose and KL entered into February 7, 2025 (the “Management Agreement”).

The Spin-Off and Related Transactions

On February 7, 2025 (the “Distribution Date”), we completed our Spin-Off from Lennar through a distribution of approximately 80% of Millrose’s outstanding common stock to holders of Lennar common stock as of the close of business on January 21, 2025. In connection with the Spin-Off, we received a contribution from Lennar of approximately $5.5 billion in land assets, representing approximately 87,000 Homesites, and cash of approximately $1.0 billion, which included $585 million of cash deposit liabilities related to option contracts with Lennar.

On February 10, 2025, we completed the acquisition of land 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, for approximately $859 million in cash, which is net of option deposits funded by Lennar and other holdbacks.

New Home Transaction

On May 12, 2025, the Company entered into a commitment with the 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, the Company entered into a 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 Agreement were used to fund the New Home acquisition of Landsea and may be used for general corporate purposes (as further described below).

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Invested Capital Activity as of June 30, 2025

Invested capital is a non-GAAP financial measure that represents the balance on which monthly cash option fees are paid by counterparties. Invested capital includes certain components of our unaudited condensed consolidated financial statements related to (i) homesite inventory and other related assets and (ii) liabilities. Management uses invested capital as a measure of the capital deployed and believes that the figure is useful to investors because it serves as the basis for generating option fees and other related income. The most directly comparable GAAP financial measure is homesite inventory and other related assets as presented in the Company’s condensed consolidated balance sheets. This non-GAAP measure is presented solely to permit investors to more fully understand how our management assesses underlying performance and is not, and should not be viewed as, a substitute for GAAP measures, and should be viewed in conjunction with our GAAP financial measures. The table below reconciles GAAP reported homesite inventory and other related assets to invested capital as of June 30, 2025 and summarizes invested capital activity during the quarter:

	Three months ended June 30, 2025
(in thousands)	Master Program Agreement			Other Agreements	Total
Invested Capital Reconciliation of GAAP to Non-GAAP
GAAP reported homesite inventory and other related assets as of June 30, 2025	$	6,591,299	$	1,253,879	$	7,845,178
Adjustments:
Remove: Net deferred tax assets and deferred tax liabilities from homesite inventories		(56,824)		-		(56,824)
Remove: Earnest deposits from homesite inventories		7,560		-		7,560
Add: Development holdback liability		(100,000)		-		(100,000)
Add: Builder deposit liabilities		(167,278)		(119,863)		(287,141)
Total Invested Capital as of June 30, 2025	$	6,274,757	$	1,134,016	$	7,408,773
Invested Capital
Invested Capital as of March 31, 2025 (1)	$	6,363,269	$	349,637	$	6,712,906
Takedown Proceeds (2)		(806,351)		(28,218)		(834,569)
Land Acquisition and Development Funding (3)		717,839		812,597		1,530,436
Invested Capital as of June 30, 2025	$	6,274,757	$	1,134,016	$	7,408,773
Weighted Average Yield as of June 30, 2025 (4)		8.5%		11.4%		8.9%
Implied Quarterly Income Run Rate as of June 30, 2025 (5)	$	133,130	$	32,333	$	165,295

(1) Includes (a) Homesite inventory contributed by Lennar at Spin-Off and acquired from Rausch, less option earning deposits and other holdbacks, and (b) takedown and land acquisition and development funding activity during the first quarter 2025.

(2) Reduction in investment balance from homesite sales pursuant to option agreements associated with the applicable category shown; takedowns are net of deposit credits adjusted for non-option earning deposits.

(3) Includes land acquisitions during the second quarter 2025, net of option earning deposits.

(4) Based on average option rate and/or loan interest rate weighted by investment balance, assumes SOFR rate as of March 27, 2025.

(5) Calculated by taking invested capital balance at end of period multiplied by weighted average yield as of quarter end, adjusted for the number of days in the 2nd quarter.

During the three months ended June 30, 2025, we funded $718 million for land acquisition and development and received $806 million in net takedown proceeds under the Master Program Agreement at a weighted average yield of 8.5%. We funded $813 million for land acquisition and development and received $28 million in net takedown proceeds for Other Agreements during this period at a weighted average yield of 11.4%. On a total portfolio basis, the weighted average yield was 8.9% as of June 30, 2025.

Properties as of June 30, 2025

As of June 30, 2025, our Homesite assets consisted of 1,000 properties (also known as communities) in 29 states across the United States, totaling approximately 128,904 Homesites, with an approximate aggregate value of $7.6 billion of Homesite inventory. Of the Homesites owned as of June 30, 2025, we expect the total Takedown Prices of all Homesites to be approximately $13.1 billion, and the total estimated development costs of Homesites to be approximately $5.5 billion. The properties are geographically located in the United States.

As of June 30, 2025, our property assets are collectively located across 29 U.S. states. Approximately 48% of the property assets are concentrated in three states (California, Florida, Texas) in terms of number of Homesites and approximately 39% are located in two strong housing market states: Florida (where Lennar has historically had a large portion of its real estate activities and is continuing to grow its real estate activities) and Texas (where we believe the market has healthy underlying demographic and/or economic trends primarily driven by generally steadily growing population).

As of June 30, 2025, the below table shows the location, number of properties, number of underlying Homesites and expected total Takedown Prices of our properties across 29 U.S. states and as set forth in the relevant Project Addenda:

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State Location	Number of Properties		Number of Underlying Homesites (1)		Total Takedown Prices
Alabama		51		5,387		371,347
Arizona		37		4,654		487,007
Arkansas		51		4,890		350,353
California		68		12,189		2,685,081
Colorado		23		2,923		369,129
Delaware		12		1,267		201,395
Florida (2)		163		17,850		1,502,349
Georgia		28		3,319		355,788
Idaho		12		482		69,364
Illinois		13		660		71,394
Indiana		19		1,267		107,803
Kansas		7		883		74,931
Maryland		9		4,486		527,521
Minnesota		42		1,593		161,059
Missouri		4		467		34,456
Nevada		22		1,486		285,557
New Jersey		5		511		87,301
North Carolina		44		2,680		355,492
Oklahoma		56		10,928		725,338
Oregon		19		695		80,225
Pennsylvania		1		26		2,408
South Carolina		53		9,919		1,045,402
Tennessee		16		1,726		223,001
Texas		202		32,658		2,152,779
Utah		5		1,463		168,886
Virginia		11		2,213		273,607
Washington		17		1,521		283,100
Wisconsin		2		17		2,092
West Virginia		8		744		57,842
Total (3)		1,000		128,904		13,112,008

(1) Or prospective Homesites if fully entitled, as applicable.

(2) Excludes properties, Homesites, and Takedown Prices for investments associated with development loans.

(3) Totals may not foot due to rounding.

The below table is a summary of our pools of properties included in our property assets as of June 30, 2025:

	Master Program Agreement		Other Agreements		Terminated Options		Total
Number of Homesites (1)		118,702		10,202		-		128,904
Invested Capital (in billions) (2)		6.3		1.1		-		7.4
Total Project Costs (in billions) (3)		11.5		1.6		-		13.1
Number of Pools (4)		39	11			-		50
Average Number of Properties per Pool (5)		23.7		5.6		-		14.7

(1) Number of Homesites excludes investments associated with development loans.

(2) Homesite inventory less deposits, deferred tax liability, and other holdbacks on post-spin acquired assets.

(3) Project costs exclude investments associated with development loans.

(4) All Lennar assets are pooled. As of June 30, 2025, there were a total of 55 communities outside of the Lennar MPA that were pooled.

(5) Total represents average number of pools on a combined basis across the Master Program Agreement and Other Agreements.

As of June 30, 2025, the Homesites within the Master Program Agreement were included in 50 separate pools, in accordance with the applicable Multiparty Cross Agreements. The average number of properties per pool was 14.7 and the aggregate sum of all option deposits Lennar has made, or is obligated to make with respect to a new pool of Future Property Assets, shall not at any time exceed $50 million with respect to pools of the Transferred Assets and $25 million with respect to pools of Future Property Assets. Pools will be established with primary consideration given to diversity within pools across geographies, communities, and home types. Future Homesite option contracts outside of the Master Program Agreement with Lennar may or may not contain pooling arrangements.

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Components of Results of Operations

The following is a summary of the key components of our operations for the three and six months ended June 30, 2025:

Options Fee Revenues and Other Related Income

Our primary source of revenue is monthly option payments from Lennar and Other Customers in consideration for maintenance of a purchase option in respect to a Property. We also derive other related income from interest earned on the outstanding loan balance of development loans secured by residential property.

Costs

Operating Expenses: Our operating expenses after the Spin-Off include Management Fees paid to KL for management and advisory services. The Management Fee is calculated as 1.25% of Tangible Assets (as defined in the Management Agreement) (the “Management Fee”). All employees are employed by KL and their salaries are paid by KL; therefore, we do not record personnel related expenses, including salaries, benefits, and share-based compensation for any employees. All cash compensation paid to our Board of Directors (the “Board”) and certain general and administrative expenses are covered by the Management Fee. The Management Fee does not cover offering expenses, costs incurred for services in connection with extraordinary litigation and mergers and acquisitions and other events outside of Millrose’s ordinary course of business, and, in some circumstances, costs associated with the ownership and maintenance of land. Any such expenses that are not covered by the Management Fee are paid for by Millrose and are recorded as general and administrative expenses or other expenses, as appropriate under GAAP. Certain of our option agreements provide (and new option agreements in the future may provide) for reimbursement by the counterparties of our transaction and/or asset management expenses, including third-party legal, diligence and servicing costs, and may include certain amounts paid by such counterparties directly to affiliates of the Manager in connection with related services provided to by such affiliates to the applicable counterparties. Our operating expenses also include stock-based compensation for restricted stock units (“RSUs”) granted to each member of the Board during the second quarter 2025. The Company records the RSU award costs on a straight-line basis over the one-year vesting period as stock-based compensation in operating expenses.

Operating expenses prior to the Spin-Off include salaries, general and administrative expenses. These expenses have been allocated from Lennar based on a reasonable proportional cost allocation method primarily based directly on headcount, usage, or other allocation methods depending on the nature of the services.

Other Income and Expenses: We record interest income from our cash as other income as it is not part of the primary activities of the business. Other expenses also include (i) interest expense related to our Revolving Credit Facility (as defined below) with commitments of $1.335 billion and our DDTL Credit Facility (as defined below) with commitments of $1.0 billion, and (ii) other expenses related to rating agency fees, legal fees, audit fees, and bank fees.

Results of Operations

The following discussion describes the results of operations for the three and six months ended June 30, 2025 versus the three and six months ended June 30, 2024. The financial data includes the combined results of operations for the Predecessor Millrose Business prior to the Spin-Off and the Millrose business after the Spin-Off. The results of operations include activity

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related to the acquired Rausch land assets from the February 10, 2025 acquisition date through June 30, 2025. We have a single operating and reportable segment in accordance with GAAP and our operations are conducted in the United States.

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2025			2024			2025			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			-			9,148			-
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	)

Three Months Ended June 30, 2025 Versus Three Months Ended June 30, 2024

Overview of Net Income (Loss)

Our net income was $112.8 million for the three months ended June 30, 2025, compared to a net loss of $59.8 million for the three months ended June 30, 2024. The increase in net income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 is due to (i) revenues earned after the Spin-Off and (ii) lower actual operating expenses after the Spin-Off versus an allocation prior to the Spin-Off, partially offset by (a) higher net interest expense, (b) higher tax provision, and (c) higher other expenses.

Option Fee and Other Related Income

Option fees and other related income was $149.0 million for the three months ended June 30, 2025, compared to $0 for the three months ended June 30, 2024. For the three months ended June 30, 2024, the Predecessor Millrose Business did not have revenues, as all finished Homesites were transferred to the Predecessor Millrose Business’s parent company, who sold those homes to Lennar customers.

Management Fee Expense

Management fee expense for the three months ended June 30, 2025 was $22.0 million, compared to $0 for the three months ended June 30, 2024. Management fee expense represents the costs for KL management services incurred from April 1, 2025 through June 30, 2025.

Stock-based Compensation Expense

Stock-based compensation expense related to RSUs granted to the Board for the three months ended June 30, 2025 was $0.2 million. Sales, general, and administrative expenses for the Predecessor Millrose Business include $1.7 million for the three months ended June 30, 2025. 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 Form 10-K.

Sales, General and Administrative Expenses from Pre-Spin Periods

Sales, general and administrative expenses from Pre-Spin periods were $59.8 million for the three months ended June 30, 2024. There were no sales, general and administrative expenses recorded during the second quarter of 2025.

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Other Income and Expense

Other income and expense was a net expense of $9.3 million for the three months ended June 30, 2025, compared to $0 for the three months ended June 30, 2024. Other income and expense for the three months ended June 30, 2025 includes (i) interest expense for the Revolving Credit Facility and DDTL Credit Facility of $10.3 million, and (ii) other expenses of $0.8 million, which was partially offset by interest income of $1.8 million related to cash balances.

Net Income (Loss) Before Income Tax Expense

Net income from operations before income tax was $117.5 million for the three months ended June 30, 2025, compared to a net operating loss of $59.8 million for the three months ended June 30, 2024. The increase in operating income is due to (i) revenues earned after the Spin-Off and (ii) lower operating expenses due to lower management service fees after the Spin-Off compared to sales, general, and administrative expenses allocated prior to the Spin-Off, partially offset by (a) higher net interest expense as a result of the Revolving Credit Facility and the DDTL Credit Facility (b) higher tax provision, and (c) higher other expenses.

Income Tax Expense

The provision for income taxes for the three months ended June 30, 2025 was $4.8 million, compared to $0 for the three months ended June 30, 2024. The second quarter 2025 tax provision resulted in an overall effective tax rate of 24.8%. There was no income tax expense for the Predecessor Millrose Business for the three months ended June 30, 2024 due to offsetting changes in the valuation allowance against its deferred taxes that reduced income tax and effective tax rate to zero. See Note 9. Income Taxes to the unaudited condensed consolidated financial statements for more information.

Six Months Ended June 30, 2025 Versus Six Months Ended June 30, 2024

Overview of Net Income (Loss)

Our net income was $152.5 million for the six months ended June 30, 2025, compared to a net loss of $116.7 million for the six months ended June 30, 2024. Our net income for the six months ended June 30, 2025 includes post Spin-Off income of $177.5 million, partially offset by pre-spin net loss of $25.0 million related to sales, general, and administrative expenses attributable to the Predecessor Millrose Business. The increase in net income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is due to (i) revenues earned after the Spin-Off and (ii) lower actual operating expenses after the Spin-Off versus an allocation prior to the Spin-Off, partially offset by (a) higher net interest expense, and (b) higher tax provision, and (c) higher other expenses.

Option Fee and Other Related Income

Option fees and other related income was $231.7 million for the six months ended June 30, 2025, compared to $0 for the six months ended June 30, 2024. For the six months ended June 30, 2025 prior to the Spin-Off and for the six months ended June 30, 2024, the Predecessor Millrose Business did not have revenues, as all finished Homesites were transferred to the Predecessor Millrose Business’s parent company, who sold those homes to Lennar customers.

Management Fee Expense

Management fee expense for the six months ended June 30, 2025 was $34.1 million, compared to $0 for the six months ended June 30, 2024. Management fee expense represents the costs for KL management services after the Spin-Off and incurred through June 30, 2025.

Stock-based Compensation Expense

Stock-based compensation expense related to RSUs granted to the Board for the six months ended June 30, 2025 was $0.2 million. Sales, general, and administrative expenses for the Predecessor Millrose Business include $8.9 million of stock-based compensation expenses for six months ended June 30, 2025. 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 Form 10-K.

Sales, General and Administrative Expenses from Pre-Spin Periods

Sales, general and administrative expenses from Pre-Spin periods were $25.0 million for the six months ended June 30, 2025, compared to $116.7 million for the six months ended June 30, 2024. For the six months ended June 30, 2025, the expenses were allocated by Lennar for the periods January 1, 2025 to the Spin-Off, which is the driver for the decrease as compared the six months ended June 30 2024 which included sales, general, and administrative expenses for the full first and second quarters of 2024. There were no sales, general and administrative expenses recorded after the Spin-Off.

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Other Income and Expense

Other income and expense was a net expense of $10.7 million for the six months ended June 30, 2025, compared to $0 for the six months ended June 30, 2024. Other income and expense for the three months ended June 30, 2025 includes (i) interest expense for the Revolving Credit Facility and DDTL Credit Facility of $12.8 million, and (ii) other expenses of $0.8 million, which was partially offset by interest income of $2.9 million related to cash balances.

Net Income (Loss) Before Income Tax Expense

Net income from operations before income tax was $161.7 million for the six months ended June 30, 2025, compared to a net operating loss of $116.7 million for the six months ended June 30, 2024. Our net income from operations before taxes includes post Spin-Off net income before taxes of $186.7 million, partially offset by pre-spin net loss of $25.0 million related to sales, general, and administrative expenses attributable to the Predecessor Millrose Business. The increase in operating income is due to (i) revenues earned after the Spin-Off and (ii) lower operating expenses which due to lower management service fees after the Spin-Off compared to sales, general, and administrative expenses allocated prior to the Spin-Off, partially offset by (a) higher net interest expense as a result of the Revolving Credit Facility and the DDTL Credit Facility, (b) higher tax provision, and (c) higher other expenses.

Income Tax Expense

The provision for income taxes for the six months ended June 30, 2025 was $9.1 million, compared to $0 for the six months ended June 30, 2024. The tax provision for the six months ended June 30, 2025 resulted in an overall effective tax rate of 24.8%. There was no income tax expense for the Predecessor Millrose Business for the six months ended June 30, 2024 due to offsetting changes in the valuation allowance against its deferred taxes that reduced income tax and effective tax rate to zero. See Note 9. Income Taxes to the unaudited condensed consolidated financial statements for more information.

Adjusted Funds from Operations

Our reported results are presented in accordance with GAAP. We also disclose Adjusted Funds from Operations (“AFFO”) which is a non-GAAP financial measure and should not be viewed as an alternative to net income calculated in accordance with GAAP as a measurement of our operating performance. We believe that AFFO is useful to investors because it is a widely accepted industry measure used by analysts and investors to compare the operating performance of REITs.

We calculate AFFO by starting with Millrose’s definition of funds from operations (“FFO”), which is the net income (computed in accordance with GAAP), excluding gains (or losses) from the sales of property, plus real estate depreciation. During this period, there are no applicable adjustments to net income of the Company to calculate FFO. We then calculate AFFO by adjusting net income to eliminate the impact of non-recurring items that are not reflective of operations and certain non-cash items that reduce or increase net income (loss) in accordance with GAAP, and also adjusted for income tax expense (other than income tax expenses of our TRS) that will not be incurred following our election and qualifications to be subject to tax as a REIT for U.S. federal income tax purposes. As shown in the table below, certain non-recurring and non-cash transactions added back for this fiscal quarter include non-cash components of compensation expense, amortization of financing costs for our Credit Agreements, and non-recurring agency expenses related to the Spin-Off.

Other REITS may not define AFFO in the same manner as we do and therefore our calculation of AFFO may not be comparable to such other REITs. You should also not consider AFFO to be an alternative to net income or as a reliable measure of our operating performance.

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The table below is a reconciliation of GAAP net income to AFFO and GAAP earnings per share to AFFO earnings per share for the three months ended June 30, 2025.

	Three months
(in thousands)	ended June 30, 2025
Net income attributable to Millrose Properties, Inc. Common shareholders	$	112,760
Adjustments:
Add: Amortization of deferred financing costs for Credit Agreements (1)		1,520
Add: Rating agency expenses (2)		567
Add: Stock-based compensation expense (3)		181
Total adjustments		2,268
AFFO attributable to Millrose Properties, Inc. Common shareholders	$	115,028
AFFO basic earnings per share of Class A and Class B Common Stock	$	0.69
AFFO diluted earnings per share of Class A and Class B Common Stock	$	0.69
Reconciliation of GAAP earnings per share to AFFO per share
GAAP reported basic earnings per share of Class A and Class B Common Stock - GAAP reported	$	0.68
Adjustments:
Add: Amortization of deferred financing costs for Credit Agreements (1)		0.01
Add: Rating agency expenses (2)		0.00
Add: Stock-based compensation (3)		0.00
AFFO basic earnings per share of Class A and Class B Common Stock	$	0.69
GAAP reported diluted earnings per share of Class A and Class B Common Stock		0.68
Adjustments:
Add: Amortization of deferred financing costs for Credit Agreements (1)		0.01
Add: Rating agency expenses (2)		0.00
Add: Stock-based compensation (3)		0.00
AFFO diluted earnings per share of Class A and Class B Common Stock	$	0.69
Basic weighted average common shares outstanding of Class A and Class B Common Stock		166,003,497
Diluted weighted average common shares		166,031,175

(1) Reflected in Interest expense in the condensed consolidated statements of operations. See Note 7.Debt Obligations.

(2) Reflected in Other expenses in the condensed consolidated statements of operations. See Note 2.Basis of Presentation and Significant Accounting Policies, Other income (expenses).

(3) RSUs granted to each member of the Board under 2024 Incentive Plan. See Note 11.Stock-Based Compensation.

Liquidity and Capital Resources

As of June 30, 2025, we had $66.6 million cash on hand and approximately $1.310 billion capacity under our Revolving Credit Facility. Our primary sources of liquidity are cash flows from operations and debt financing under our Revolving Credit Facility of $1.335 billion and our DDTL Credit Facility of $1.0 billion. We believe that our existing cash on hand, cash generated from operations and available capacity under the Revolving Credit Facility will be sufficient to meet our liquidity needs in the short and long term. Our ability to satisfy our liquidity requirements depends on our future operating performance, which is affected by prevailing economic conditions, market conditions in the real estate industry and other factors, many of which are beyond our control.

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Cash Flows

Our cash flows for the six months ended June 30, 2025 and 2024 are presented below. The financial data includes the results of cash flows for the Predecessor Millrose Business prior to the Spin-Off, which is derived from the financial statements of Lennar; and the Millrose business after the Spin-Off, which is derived from the accounting records of Millrose.

	Six months ended June 30,
(in thousands)		2025				2024
Cash flows from (used in)
Operating activities	$		130,382		$		599,900
Investing activities			(1,332,995	)			(599,900	)
Financing activities			1,269,188				-
Net increase (decrease) in cash	$		66,575		$		-

Cash Flows from Operating Activities

For the six months ended June 30, 2025, net cash from operating activities was $130.3 million. Our cash sources were $207.2 million consisting of option fee income of $174.4 million, development loan interest paid-in-kind of $4.9 million, interest income of $2.9 million, and pre-spin adjustments of $25.0 million. Our cash used was $76.9 million and consisted of our Management Fee payment to KL of $34.1 million, interest payments on our Revolving Credit Facility of $8.7 million, tax payments of $8.5 million, agency fee payments of $0.4 million, legal fee payments of $0.2 million, and Predecessor Millrose Business pre-spin-off net loss of $25.0 million.

For the six months ended June 30, 2024, net cash from operating activities was $599.9 million, primarily consisting of inventory takedowns of $709.6 million, and stock-based compensation of $8.9 million, which was partially offset by operating expenses of $1.9 million and by net operating loss of $116.7 million. All cash from the operating activities for the six months ended June 30, 2024 was allocated to the Predecessor Millrose Business by Lennar and not generated by the Predecessor Millrose Business itself.

Cash Flows from Investing Activities

For the six months ended June 30, 2025, net cash used in investing activities was $1.333 billion. Our cash used was $3.356 billion, consisting of payments to acquire Rausch land assets of $858.9 million and investments in Homesite inventory and other related assets of $2.497 billion. Our cash sources were $2.023 billion, consisting of option deposit payments from Lennar at Spin-Off of $584.8 million and takedowns of Homesite inventories and other related assets of $1.438 billion.

Cash Flows from Financing Activities

For the six months ended June 30, 2025, net cash from financing activities was $1.269 billion. Our cash sources were $2.365 billion, consisting of cash contributed by Lennar at Spin-Off of $415.2 million, Revolving Credit Facility drawdowns of $950.0 million, and DDTL Credit Facility drawdowns of $1.0 billion. Our cash used was $1.096 billion, consisting of Spin-Off costs of $77.9 million, Revolving Credit Facility financing payments of $925.0 million, repayment of Revolving Credit Facility debt of $9.9 million, DDTL Credit Facility financing payments of $14.1 million, dividends paid to shareholders of $63.1 million, and payment on seller notes of $6.0 million.

For the six months ended June 30, 2024, net cash used in financing activities was $599.9 million, consisting of principal payment on debt of $18.0 million and transfers to Lennar of $581.9 million. All cash from the financing activities for the six months ended June 30, 2024 was allocated to the Predecessor Millrose Business by Lennar and not generated by the Predecessor Millrose Business itself.

Other Cash Flows Considerations

During the second quarter 2025, Lennar updated its methodology for purchases from land bankers in order to reduce the time between Homesite purchase and homebuyer delivery. In connection with this update, Lennar and Millrose agreed to amend certain Homesite takedown schedules included in property-specific addendums to the Master Option Agreement. We expect these amendments will result in an average three-month increase in the option term as compared to the original takedown schedules, with no impact on monthly option payment terms or any other terms of the Master Option Agreement. Management does not expect these amendments to have a material impact on results of operations in future periods.

Revolving Credit Facility

On the Distribution Date, we entered into a credit agreement (the “Revolving Credit Agreement”) with a consortium of lenders party thereto and 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,

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2025. Availability under the Revolving Credit Agreement is subject to a borrowing base updated quarterly (or, at our 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 us 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 our 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 us of (i) the Promissory Note (as defined below) and (ii) the equity interests of Millrose Holdings. In addition, the Revolving Credit Agreement requires us 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 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. We 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 us to cause certain of our 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 us and our 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 us to be in compliance with all REIT requirements. As of June 30, 2025, we were 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 our manager and a replacement manager reasonably acceptable to the required lenders 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.

See Note 7. Debt Obligations to our unaudited condensed consolidated financial statements included in “Part I, Item 1 Financial Statements” of this Form 10-Q for further description.

Delayed Draw Term Loan Facility

On June 24, 2025, the Company entered into a credit agreement (the “DDTL Credit Agreement”, and together with the Revolving Credit Agreement, the “Credit Agreements”) 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 Credit 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

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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.

See Note 7. Debt Obligations to our unaudited condensed consolidated financial statements included in “Part I. Item 1 Financial Statements” of this Form 10-Q for further description.

Debt to Equity Ratio Limit Right

In addition to the Credit Agreements, Millrose may seek to pursue other debt and expects to have access to a certain amount of debt and equity capital at least a portion of which is intended to be available for use in financing transactions with new customers. However, there is no guarantee that such sources of additional capital will be obtained on acceptable terms or at all or will be sufficient to cover all of Millrose’s business growth initiatives. As such, Millrose may also seek additional third-party financing to satisfy any additional capital needs or raise capital through equity and debt issuances into the market. Additionally, any third-party financing arrangements Millrose enters into may not cause its debt to equity ratio to exceed 1:1 (the “Debt to Equity Ratio Limit”), unless Millrose obtains the prior approval of Lennar.

Secured Financing Collateral Consent Right

In addition to the Credit Agreements, from time to time, Millrose may enter into various “secured financing arrangements,” which may include but are not limited to secured or collateralized loans, or any other transactions where assets may be pledged or used as collateral to secure the financing instrument, whether or not the security interest is perfected. In such cases, Millrose may use the land assets it holds through its subsidiaries in its real estate portfolio or the proceeds from

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customers’ exercises of purchase options relating to the land assets in Millrose’s real estate portfolio as collateral to secure the financing. While Millrose may, at its discretion, enter into any secured financing arrangements it so chooses (subject to the Debt to Equity Ratio Limit), Millrose is prohibited from granting or selling any security interest whereby the assets pledged pursuant to such security interest include Transferred Assets, Supplemental Transferred Assets or Future Property Assets held pursuant to the Lennar Agreements and Future Property Assets of Other Customers (i.e., mixing the assets into one collateral pool) without Lennar’s prior written consent.

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.We intend to make regular dividend payments of at least 90% of our REIT taxable income to holders of our common stock out of assets legally available for this purpose. While we do not plan to do so, under currently applicable Internal Revenue Services guidance, approximately 80% of these dividends may be paid in the form of stock dividends, rather than in cash. Dividends will be authorized by our Board and declared by us based on a number of factors including actual results of operations, dividend restrictions under Maryland law or applicable debt covenants, our liquidity and financial condition, our taxable income, the annual distribution requirements under the REIT provisions of the Code, our operating expenses and any other factors our Board deems relevant. Subject to certain exceptions, distributions received from us will not be qualified dividends and will therefore be taxed at ordinary income rates to the extent of our current or accumulated earnings and profits.

Effects of Inflation and Seasonality

See discussion in the section “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K.

Promissory Note

As part of the recapitalization of Millrose Holdings prior to the distribution, on February 6, 2025, Millrose Holdings and certain of its subsidiaries issued to Millrose a promissory note (the “Promissory Note”) of approximately $4.8 billion that is secured by a pledge of all equity interests in the Initial Property LLCs and unrecorded mortgages on the Transferred Assets.

We intend to amend the Promissory Note effective as of February 10, 2025, to reflect the updated principal balance of $5.1 billion associated with the Supplemental Transferred Assets Transaction and to add the Supplemental Property LLCs as borrowers under the Promissory Note. In the event that Millrose Holdings or another TRS of Millrose acquires additional land assets, the Promissory Note may be further amended to reflect such acquisitions. Alternatively, Millrose Holdings or another Millrose TRS may issue one or more additional promissory notes that are similar to the Promissory Note.

Mortgages

In connection with the Promissory Note, on February 6, 2025, each of the Initial Property LLCs delivered fully executed mortgages with respect to the Homesites that they own in favor of Millrose to secure the Promissory Note. Additionally, in connection with the Supplemental Transferred Assets Transaction, each of the Supplemental Property LLCs delivered fully executed mortgages with respect to the Homesites that they own in favor of Millrose to secure the Promissory Note. The Mortgages were not recorded initially, but each Initial Property LLC and Supplemental Property LLC is required to comply with Millrose’s request to amend the Mortgages so that they may be recorded if Millrose so requests.

The Homesites covered by the Mortgages will automatically be released from the applicable Mortgage upon (a) payment in full of the Promissory Note or (b) the occurrence of a closing of such Homesite in accordance with the Master Option Agreement. Additionally, any new real property that the Property LLCs acquire while any portion of the Promissory Note remains unpaid or unsatisfied shall automatically be subject to the lien of the Mortgages or of similar mortgages or deeds of trust.

Pledge and Security Agreement

In connection with the Promissory Note, Millrose Holdings entered into a Pledge and Security Agreement with Millrose on February 6, 2025 (as amended, the “Pledge and Security Agreement”), pursuant to which Millrose Holdings pledged a first priority perfected, continuing security interest in and lien on 100% of its membership interests in each Initial Property LLC and in all proceeds thereof (for purposes of this section only, the “Pledged Collateral”) as collateral for Note Borrower’s performance of its obligations under the Promissory Note and Mortgage. Except during the continuance of a Note Event of Default, Note Borrower will have the right to receive all distributions, interest and proceeds in respect of the Pledged Collateral.

We intend to amend the Pledge and Security Agreement effective as of February 10, 2025, to reflect the Supplemental Transferred Assets Transaction, including adding the membership interests in the Supplemental Property LLCs as pledged

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assets. In the event that Millrose Holdings or another TRS of Millrose acquires additional land assets, the Pledge and Security Agreement may be further amended to reflect such acquisitions. Alternatively, Millrose Holdings or another Millrose TRS may enter into one or more additional pledge and security agreements that are similar to the Pledge and Security Agreement.

REIT Tax Election and Income Taxes

We intend to elect to be taxed as a REIT under Sections 856 through 860 of the Code and expect to qualify as a REIT. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our “REIT taxable income,” as defined by the Code, to our stockholders. Taxable income from certain non-REIT qualifying activities is derived through our TRSs and is subject to applicable U.S. federal, state, and local income and franchise taxes. During the three and six months ended June 30, 2025, we recorded consolidated income tax expense of $4.8 million and $9.1 million, respectively, which was attributable to our TRSs. We had no significant taxes associated with our TRS for the years ended December 31, 2024 or six months ended June 30, 2024.

We believe we qualify for taxation as a REIT under the Code, and we intend to continue to be organized and to operate in a manner that will permit us to qualify as a REIT. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to stockholders. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. In addition, our TRSs are fully subject to applicable U.S., federal, state, and local income and franchise taxes.

If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at regular corporate income tax rates, and dividends paid to our stockholders would not be deductible by us in computing taxable income. Any resulting corporate liability could be substantial and could materially and adversely affect our net income and net cash available for distribution to stockholders. Unless we were entitled to relief under certain Code provisions, we also would be disqualified from re-electing to be taxed as a REIT for the four taxable years following the year in which we failed to qualify to be taxed as a REIT.

We evaluate the tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the applicable statute of limitations, for all major jurisdictions, which include federal and certain states. We have no examinations in progress and none are expected at this time. We evaluate our tax positions using a two-step process. First, we determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, we determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. We had no material unrecognized tax benefit or expense, accrued interest or penalties as of December 31, 2024 or June 30, 2025. We and our subsidiaries are subject to U.S. federal income tax as well as income tax of various state and local jurisdictions. When applicable, we recognize interest and/or penalties related to uncertain tax positions on our combined statements of operations and comprehensive income (loss).

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Emerging Growth Company

Millrose is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act, and we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement under the Securities Act declared effective or do not have a class of securities registered under the Exchange Act) are required

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to comply with the new or revised financial accounting standards. We have elected not to opt in to such extended transition period.

Critical Accounting Policies and Estimates

We prepare our financial statements in accordance with GAAP which requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities, including our contingent liabilities, as of the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Our actual results may differ from these estimates. Our critical accounting policies are those that require significant judgments, assumptions and estimates by management about matters that are inherently uncertain and because they are important for understanding and evaluating our financial results. We consider an accounting judgment, estimate or assumption to be critical when (1) the estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of different judgments, estimates and assumptions could have a material impact on our financial statements.

Our accounting policies have been established to conform with GAAP. The preparation of the financial statements in accordance with GAAP requires management to use judgments in the application of such policies. These judgments will affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Listed below are the significant accounting policies and estimates that we believe are critical and require the use of significant judgment in their application. Our accounting policies are more fully described in Note 2. Basis of Presentation and Significant Accounting Policies of the notes to the condensed consolidated financial statements included in “Part I, Item 1 Financial Statements” of this Form 10-Q.

Revenue Recognition

Revenues related to monthly option payments from customers under our option contracts are recorded on a monthly basis over the period that the performance obligation to provide the exclusive purchase option is satisfied. Option fees are billed by the Company monthly and are due from customers in the following month. Cash payments received for option deposits are recorded as a liability and are applied to the total takedown price paid by the customer. If customers do not exercise their purchase options, the deposits are forfeited and the Company records the deposits as income. Payments received when customers exercise their purchase options and acquire Homesites from the Company are recorded as a reduction of the Homesite inventory carrying value on the balance sheet as of the date of the sale.

The Company also derives other related income from interest earned 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.

Inventory

The Company accounts for Homesite inventory in accordance with ASC 360, Property, Plant, and Equipment. Homesite inventory is classified as land under development, or homesites finished. 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 classifies development loan receivables as inventories, 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. The development costs are recorded at the cost to acquire the principal portion less principal payments. The Company reviews its development loan receivables for impairment in accordance with ASC 326, Financial Instruments - Credit Losses.

Accounting for Spin-Off from Lennar

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 and 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.

Accounting for Acquisition of Rausch Land Assets

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.

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New Home Company Transaction

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.

Recent Accounting Standards

For discussion of recently issued accounting standards, see Note 2. Basis of Presentation and Significant Accounting Policies to our unaudited condensed consolidated financial statements included in “Part I, Item 1 Financial Statements” of this Form 10-Q.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risk related to changes in interest rates and other market changes that affect our debt obligations and market sensitive investments. Interest rate changes may affect (i) the market for new homes, and therefore the likelihood that purchase options will be exercised, (ii) debt obligations for our Revolving Credit Facility, and (iii) the ability to obtain other long-term debt used to maintain liquidity, fund capital expenditures and expand our investment portfolio and operations. We seek to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. In the future, we may use derivative instruments to hedge exposures to changes in interest rates on land secured by our assets on the value of the land we own. There have been no material changes from the market risk disclosure set forth in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in the Form 10-K.

As of June 30, 2025, we had $25.0 million outstanding borrowings under the Revolving Credit Facility.

As of June 30, 2025, we had $1 billion outstanding borrowings under the DDTL Credit Agreement.

Borrowings under our Revolving Credit Facility bear interest at the “Adjusted Term SOFR Rate”, plus an applicable per annum spread rate of 2.00%-2.50% based on the Leverage Ratio. All outstanding principal is due and payable upon termination of the Revolving Credit Facility. Variable changes in interest rates related to the Adjusted Term SOFR Rate are generally not expected to affect the fair value of outstanding borrowings on our Revolving Credit Facility but do affect our earnings and cash flows. Assuming no change in the amount outstanding as of June 30, 2025, the impact on interest expense of a 1% increase or decrease in the average interest rate would be approximately $1.4 million for the six months ended June 30, 2025 and $0.3 million on an annual basis over twelve months.

Borrowings under our DDTL Credit Facility bear interest at the DDTL Adjusted Term SOFR Rate, plus an applicable per annum spread rate of 2.00%-3.25% based on the DDTL Leverage Ratio and the number of days after the initial draw date. All outstanding principal is due and payable upon termination of the DDTL Credit Facility. Variable changes in interest rates related to the DDTL Term Adjusted SOFR Rate are generally not expected to affect the fair value of outstanding borrowings on our DDTL Credit Facility but do affect our earnings and cash flows. Assuming no change in the amount outstanding as of June 30, 2025, the impact on interest expense of a 1% increase or decrease in the average interest rate would be approximately $0.2 million for the six months ended June 30, 2025 and $10.0 million on an annual basis over twelve months.

For additional information regarding our market risk, refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Form 10-K.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) of the Exchange Act) as of the end of the period covered by this Form 10-Q as required by paragraph (b) of Rule 13a-15 or 15d-15 of the Exchange Act. Based upon such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025 and provided reasonable assurance that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Our Chief Executive Officer and Chief Financial Officer evaluated for changes in internal control over financial reporting (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that occurred for the quarter ended June 30, 2025. As disclosed in our Form 10-Q for the quarter ended March 31, 2025, prior to the Spin-Off, the Predecessor Millrose Business relied on processes and internal controls over financial reporting performed by Lennar. After the Spin-Off, Millrose became an independent company and responsibility for these processes and controls were transferred to KL, the Manager for Millrose. These changes are not expected to materially affect or have an adverse impact on our ability to maintain adequate internal controls over financial reporting. Following the Spin-Off, new corporate and governance functions will continue to be implemented in order to meet the regulatory requirements of a stand-alone company.

40

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

Millrose is not currently a party to any legal proceedings that we believe would reasonably be expected to have a material adverse effect on our business, financial condition or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this Form 10-Q, you should carefully consider the risks contained in “Part I, Item 1A. Risk Factors” of our Form 10-K and in other documents we file with the SEC, in evaluating Millrose and its business. There have been no material changes in our risk factors from those described in our Form 10-K. The risks described in the Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or future results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended June 30, 2025, none of Millrose’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

41

Item 6. Exhibits

(a)Exhibits

Exhibit Number	Description
3.1	Articles of Amendment and Restatement of Millrose Properties, Inc., dated February 6, 2025 (incorporated by reference to Exhibit 3.1 to Millrose’s Current Report on Form 8-K filed with the SEC on February 7, 2025)
3.2	Amended and Restated Bylaws of Millrose Properties, Inc., dated February 7, 2025 (incorporated by reference to Exhibit 3.2 to Millrose’s Current Report on Form 8-K filed with the SEC on February 7, 2025)
10.1†	Delayed Draw Term Loan Agreement, dated as of June 24, 2025, by and among Millrose Properties, Inc., the lenders party thereto and Goldman Sachs Bank USA, as administrative agent (incorporated by reference to Exhibit 10.1 to Millrose’s Current Report on Form 8-K filed with the SEC on June 26, 2025)
10.2	Form of Millrose Properties, Inc. Director Restricted Stock Unit Agreement (incorporated by reference to Exhibit 10.17 to Millrose's Quarterly Report on Form 10-Q, filed with the SEC on May 14, 2025)
31.1*	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document
104	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

* Filed herewith.

** Furnished herewith.

† Certain schedules, annexes and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule or exhibit upon the request of the SEC.

42

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MILLROSE PROPERTIES, INC.
By:	/s/ Garett Rosenblum
Name:	Garett Rosenblum
Title:	Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer and Duly Authorized Signatory)
	Date: July 31, 2025

43

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

I, Darren L. Richman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Millrose Properties, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal

control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2025	By: /s/ Darren L. Richman
	Darren L. Richman
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

I, Garett Rosenblum, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Millrose Properties, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly

present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal

control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2025	By: /s/ Garett Rosenblum
	Garett Rosenblum
	Chief Financial Officer and Treasurer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Millrose Properties, Inc. (the “Company”) for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Darren L. Richman, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 31, 2025	By: /s/ Darren L. Richman
	Darren L. Richman
	Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Millrose Properties, Inc. (the “Company”) for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Garett Rosenblum, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 31, 2025	By: /s/ Garett Rosenblum
	Garett Rosenblum
	Chief Financial Officer and Treasurer
	(Principal Financial Officer)

XML

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

XML

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

XML

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

XML

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.

XML

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

XML

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)

XML

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

XML

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)

XML

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

XML

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).

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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	$	-

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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%

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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

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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

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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

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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%

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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

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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%

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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

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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

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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

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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