Why Millrose Properties (MRP) Stands Out Among 2025 Spin-Offs

Core Viewpoint - Millrose Properties Inc. (NYSE:MRP) has successfully completed its spin-off from Lennar Corp. and is now an independent company, showing strong stock performance and positive analyst coverage [1][4]. Group 1: Spin-Off Details - Millrose Properties was spun off from Lennar Corp. on February 7, 2025, with approximately 80% of its stock distributed to Lennar's stockholders [1]. - As part of the spin-off, Lennar contributed $5.5 billion in land assets, including around 87,000 homesites, and $1 billion in cash, while retaining about 20% of Millrose's outstanding common stock [2]. Group 2: Analyst Coverage and Financial Performance - BTIG analyst Ryan Gilbert initiated coverage on Millrose Properties with a Buy recommendation and a price target of $35, citing the stock as "cheap relative to the opportunity" [3]. - The company announced a quarterly cash dividend of approximately $124.5 million, or $0.75 per share, which is an increase from the previous $0.73 per share [3]. - Since its spin-off, Millrose's stock has risen by 41%, indicating strong market performance [4]. Group 3: Business Model - Millrose Properties operates as a Homesite Option Purchase Platform (HOPP'R) for residential homebuilders, purchasing and developing residential land and selling finished homesites back to builders through option contracts [4].