Millrose put $1.26 billion into land last quarter, $714 million outside Lennar
Darren Richman’s land bank now works with 22 builders and developers, earns a higher rate from clients other than Lennar and borrowed $1 billion to keep buying homesites.
By Raymond de Clairmont · · 3 min read
Millrose Properties, the land bank Lennar spun off [3], funded $1.26 billion of land acquisitions and development in the third quarter, and $714 million of it went to builders other than Lennar [1]. CEO Darren Richman called it “a record third quarter” [1].
Revenue rose to $211.0 million from $179.3 million a year earlier, and net income reached $130.0 million [1].
Most of the new money went to builders other than Lennar
Lennar received $546 million of the quarter’s funding [1]. It still accounts for about $5.9 billion, or 64%, of Millrose’s $9.2 billion of invested capital [1].
Builders also bought finished lots back from Millrose. Takedowns brought in $813.7 million, and $620.9 million of that came from Lennar [1].
Millrose now counts 21 counterparties outside Lennar [1]. The biggest recent one is Dream Finders, which received about $1.1 billion of support for its Beazer acquisition, including about $488 million of preferred equity with a 12% dividend [1][2].
Builders other than Lennar pay a higher rate
The portfolio yields 9.3% on a weighted basis, with Lennar’s agreements at 8.5% and the others at 10.8% [1]. On a $20 million lot package, we calculate the gap between those two rates at about $460,000 a year in option fees.
Millrose borrowed $1 billion and approved its first buyback
In September it priced $500 million of 6.500% notes due 2029 and $500 million of 6.750% notes due 2031, and its board approved a $250 million share repurchase program in October [1].
| Millrose | Dec. 31, 2025 | Sept. 30, 2026 |
|---|---|---|
| Homesites under option contracts | $8.9 billion | $9.9 billion |
| Total assets | $9.3 billion | $10.6 billion |
| Corporate debt | $2.1 billion | $3.1 billion |
| Homesites | Not given | 156,729 |
| Communities | Not given | 834 in 30 states |
How to use this
For builders that need land capital
- Compare a land banker’s fee with your other sources of money before you sign. Millrose earns 10.8% on average from builders other than Lennar while its new notes cost 6.500% to 6.750% [1], so ask for the option fee rate in writing and set it next to your bank line.
- Ask how takedowns are scheduled and what happens to your fees if sales slow. Builders other than Lennar took down $192.8 million of lots last quarter against $714 million of new funding [1].
For land sellers
- Ask early whether a land banker will hold title and the builder will hold an option. Millrose funded $1.26 billion in one quarter across 834 communities in 30 states [1], so this structure could show up in your deal.
- Get the builder’s option terms in writing before you agree to a phased closing. In the Dream Finders deal, Millrose buys the homesites, and the builder pays option fees during development and buys finished lots over time [2].
For investors
- Compare the dividend with cash earnings. Millrose paid $0.79 a share against adjusted funds from operations of $0.80 [1], which by our math is a payout of about 99%.
- Track Lennar’s share of invested capital, about 64% now [1]. More of the book in non-Lennar deals means more income at the 10.8% rate and more exposure to smaller builders.
This is market commentary, not investment advice.
Sources
- [1]Millrose Properties, Inc., Millrose Properties reports third quarter 2026 financial results, Oct 27, 2026.
- [2]Millrose Properties, Inc., Millrose Properties to provide capital support for Dream Finders Homes’ announced acquisition of Beazer Homes with up to $1.25 billion, Aug 7, 2026.
- [3]Lennar Corporation, Lennar reports third quarter 2026 results (SEC Form 8-K, Exhibit 99.1), Sep 16, 2026.
