Millrose Properties, Inc. is a specialized real estate investment trust (REIT) that operates as a land banking platform for the U.S. residential homebuilding industry. Headquartered in Miami, Florida, the company was incorporated in 2024 and spun off from Lennar Corporation in February 2025 to serve as an independent, asset-light capital solution for homebuilders. Millrose's core business model revolves around its proprietary Homesite Option Purchase Platform (HOPP'R). The company acquires land, funds its horizontal development, and holds the finished homesites. Homebuilders then pay contractual monthly option fees to maintain the right to purchase these homesites on a just-in-time basis at predetermined prices. This structure allows homebuilders to secure a reliable pipeline of land while optimizing their balance sheets and capital efficiency. Millrose generates the vast majority of its revenue from these recurring option fees, supplemented by development loan income. For example, in the first quarter of 2026, the company generated approximately 95% of its revenue from option fees. While Lennar remains its foundational and largest partner, Millrose has actively diversified its counterparty base, expanding its forward flow agreements to include numerous other national and regional homebuilders. By bridging the gap between land development and home construction, Millrose provides a critical, institutional-scale financing and land management solution within the housing value chain.
