Core Insights - Millrose Properties deployed $5.5 billion in land acquisitions and development funding in 2025, generating $3.4 billion in takedown proceeds from over 31,000 homesite closings [1][3] - The company managed approximately 142,000 homesites across 933 communities in 30 states, serving 15 counterparties, including nine of the top 25 homebuilders in the U.S. [2] - Millrose's average home selling price was about 20% below the national average for newly built single-family homes, supporting housing affordability [3] Financial Performance - Millrose reported a fourth-quarter net income of $122.2 million, or $0.74 per share, and a full-year net income of $404.8 million, or $2.44 per share [13] - Adjusted funds from operations (AFFO) for the fourth quarter were $0.76 per share, at the high end of guidance, with a normalized year-end run-rate of $0.77 per share [14] - The company ended the year with total assets of approximately $9.3 billion and total debt of $2.1 billion, resulting in a debt-to-capitalization ratio of about 26% [16] Growth Strategy - Millrose aims to grow invested capital outside the Lennar Master Program Agreement by an additional $2 billion in 2026, bringing total invested capital to approximately $10.5 billion [18] - The company plans to fund growth while maintaining a conservative posture, targeting a 33% debt-to-cap ratio and not issuing equity below book value [19] - Management highlighted the importance of maintaining leverage discipline, with a focus on durable, fundamental growth and building new relationships for land banking capital [20][24] Market Outlook - Signs indicate that the spring selling season in 2026 could resemble a normal, healthy market, supported by rising incomes, moderating home prices, and lower interest rates [8] - Builders reduced starts in the second half of 2025 to align supply with demand, which helped manage inventory levels [9] - The company is monitoring various markets, noting strength in the Southeast and challenges in Texas and Las Vegas [10][11][12]