Millrose outperforms with disciplined growth, strong partnerships

"Millrose acquires, retains and develops residential land, allowing homebuilders to secure control of homesites through option agreements rather than purchasing the land outright. These agreements enable a land-light strategy, supporting a nimbler, capital-efficient operating model. Builders pay option fees to secure the right to acquire completed homesites on a set schedule."

"2025 was not an easy year for the home building industry, and that is precisely what made it such a meaningful proof point for Millrose, CEO and President Darren Richman said during a Q4 2025 earnings call. 2025 proved the model. 2026 is where we intend to begin showing its full potential."

"Despite a headwinds-laden homebuilding environment, where new home starts fell by about 7.0% nationally last year, Millrose reported that no builder walked away from a contract in 2025. Many builders reduced their lot exposure last year to boost margins and liquidity. But Millrose, in its first year independent of Lennar, relied on strategic risk management and selective yet consistent partnership expansion to drive growth."

Millrose Properties, which spun out from Lennar in December 2024, achieved revenue growth in 2025 while the homebuilding industry contracted with new home starts falling 7.0% nationally. The company maintained zero builder contract cancellations, contrasting with competitors who reduced lot exposure to boost margins. Millrose operates through an asset-light model, acquiring and developing residential land while allowing homebuilders to secure homesites via option agreements rather than outright purchases. This strategy enables builders to scale land positions while managing debt and capital requirements efficiently. CEO Darren Richman characterized 2025 as a proof point for the business model, with 2026 positioned as the year to demonstrate full potential.

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