Millrose Properties — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income attributable to common shareholders of $130.0 million ($0.78 per share) for the quarter ended September 30, 2026, compared to $105.1 million ($0.63 per share) in the prior year period.
• Total revenues reached $211.0 million, driven by $209.5 million in option fee revenues and $1.5 million in development loan income, up from $179.3 million in the prior year quarter.
• Adjusted Funds From Operations (AFFO) totaled $133.5 million ($0.80 per share), marking the sixth consecutive quarterly increase, compared to $122.5 million ($0.74 per share) in the prior year quarter.
• Total portfolio weighted average annualized yield was 9.3% as of September 30, 2026.
• Generated $0.8 billion in net cash proceeds from homesite sales during the quarter.
• Total assets were $10.6 billion as of September 30, 2026, up from $9.3 billion as of December 31, 2025.
• Total corporate debt was $3.1 billion with a debt-to-capitalization ratio of 36%.
• Liquidity stood at $0.8 billion, including cash and availability under the revolving credit facility.

Guidance and Future Outlook:

• Raised fourth quarter 2026 AFFO outlook to a range of $0.82 to $0.84 per share.
• Management indicated confidence in the durability of cash flows and commitment to disciplined capital allocation.

Business Segments and Product Lines:

• Lennar Master Program Agreement: Received $596 million in net cash proceeds from homesite sales to Lennar and redeployed $546 million into new land acquisitions and development funding. Homesites under option contracts totaled $6.3 billion with an invested capital balance of approximately $5.9 billion and a weighted average yield of 8.5%.
• Other Agreements: Funded an additional $714 million under other agreements at a weighted average yield of 10.8%. Homesites under option contracts and related assets reached $3.8 billion, with invested capital net of realized sales at $3.4 billion.
• Counterparty Base: Expanded to 22 homebuilder and developer relationships, with 21 counterparties outside the Lennar Master Program Agreement.
• Single-Family Rental Pilot: Acquired an initial portfolio of 1,233 completed single-family homes from Lennar across 18 states for a cost basis of approximately $333 million, funded with $120 million of balance sheet capital and $213 million of limited-recourse secured financing.
• Portfolio Composition: Ended the quarter with 156,729 homesites across 834 communities in 30 states.

Market and Competitive Landscape:

• Finalized approximately $1.1 billion in capital support in connection with Dream Finders Homes' acquisition of Beazer Homes, effective October 20, 2026.
• The Dream Finders transaction includes approximately $580 million in land banking capital across 7,000 homesites (weighted average life of 2.5 years) and $488 million in preferred equity in Dream Finders carrying a 12% dividend.
• Pro forma for the Dream Finders transaction, approximately 42% of the asset base is now invested outside the Lennar Master Program Agreement.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers regarding risks such as the availability of capital, counterparty performance, real estate market conditions, and regulatory compliance, noting that results may differ from expectations due to uncertainties.

Management Commentary and Tone:

• CEO Darren Richman stated the quarter was "record" driven by "disciplined underwriting and the resilience and adaptability of our platform in a challenging housing market."
• Management highlighted the completion of the Dream Finders financing as evidence of Millrose's role as a "comprehensive capital solutions platform for the homebuilding industry."
• The tone reflects confidence in the business model's ability to enable capital-efficient consolidation and expand counterparty relationships.

Other Key Points:

• Dividend: Declared a quarterly dividend of $131.2 million ($0.79 per share) on September 23, 2026, paid on October 15, 2026.
• Share Repurchase: The Board authorized a new $250 million share repurchase program in October 2026, allowing for opportunistic repurchases subject to market conditions.
• Debt Issuance: Priced $1.0 billion in senior notes in September 2026, consisting of $500 million of 6.500% notes due 2029 and $500 million of 6.750% notes due 2031.
• Capital Redeployment: Redeployed $1.3 billion in land acquisitions and development funding across the portfolio during the quarter.