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• Realty Income (O) for a more diversified portfolio of commercial properties.
• A net lease landlord to various businesses, much like Realty Income (O).

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• Industrial Real Estate Leasing: Leasing of modern logistics facilities and distribution centers to companies requiring robust supply chain infrastructure.

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Millrose Properties (symbol: MRP) appears to be a hypothetical or fictional public company, as there is no prominent real public company listed under this name and symbol in financial databases or SEC filings. Therefore, its specific major customers cannot be definitively identified.

However, for the purpose of this exercise, let us assume Millrose Properties (MRP) operates as a diversified commercial real estate investment trust (REIT) or property management company. In this scenario, it would primarily lease space to other companies rather than selling to individuals.

If Millrose Properties were a commercial real estate company, its major customers would be its tenants, which are typically other businesses that lease office, retail, industrial, or other commercial spaces. As we cannot identify actual customers for a fictional entity, the following are illustrative examples of the types of major public companies that could serve as significant tenants for such a diversified real estate portfolio:

• Alphabet Inc. (Symbol: GOOGL) - A major technology company that frequently leases large amounts of office space for its various divisions.
• Amazon.com, Inc. (Symbol: AMZN) - A global e-commerce and cloud computing giant that requires extensive industrial/warehouse facilities and office spaces.
• The Home Depot, Inc. (Symbol: HD) - A large home improvement retailer that would lease significant retail property and associated distribution facilities.

Please note that these are hypothetical examples of major tenants and not actual customers of the fictional Millrose Properties (MRP).

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Darren L. Richman, Chief Executive Officer and President

Mr. Richman co-founded Kennedy Lewis with David Kennedy Chene in 2017, where he serves as Co-Managing Partner. Prior to Kennedy Lewis, he was a Senior Managing Director with The Blackstone Group from 2006 to 2016, specializing in special situation and opportunistic investments. He also served on the Investment Committee for GSO Capital Partners LP's opportunistic credit funds and special situation funds. Millrose Properties was founded on March 19, 2024.

Garett Rosenblum, Chief Financial Officer and Treasurer

Mr. Rosenblum previously held a position at Kennedy Lewis. He recently purchased 5,900 shares of Millrose Properties' Class A common stock for approximately $134,741 on March 3, 2025, increasing his direct ownership to 5,900 shares.

Robert Nitkin, Chief Operating Officer

Mr. Nitkin joined Kennedy Lewis in 2020 as a Managing Director, focusing on real estate and homebuilding sectors. Before joining Kennedy Lewis, he was an investment principal at GPS Investment Partners, an institutional investment firm. His earlier career included roles as an Associate in the Securities Division at Goldman Sachs & Co. and as a member of the Transaction Advisory group at Ernst and Young LLP.

Adil Pasha, Chief Technology Officer

Mr. Pasha is a Director at Kennedy Lewis, where he has been responsible for managing the firm's technology and analytics capabilities since 2022. Prior to Kennedy Lewis, he was a Data Scientist at Schonfeld Strategic Advisors LLC, a multi-strategy hedge fund, from 2021 to 2022. From 2020 to 2021, he worked as a Product Manager, designing and building accounting/financial applications.

Rachel Presa, General Counsel and Secretary

Ms. Presa joined Kennedy Lewis in 2021 and is a Managing Director, having served in various legal capacities within the firm. She possesses 14 years of experience advising investment funds, financial institutions, and other clients on legal and compliance matters. Before Kennedy Lewis, Ms. Presa was Senior Counsel at Akin Gump Strauss Hauer & Feld LLP from 2010 to 2021.

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The key risks to Millrose Properties (symbol: MRP) are primarily centered around its customer concentration, exposure to real estate market volatility, and leverage:

1. Dependency on Lennar and Customer Concentration: A significant portion of Millrose Properties' business and portfolio is concentrated with Lennar, a major homebuilder. The company's financial performance is heavily contingent on Lennar's exercise of land purchase options. While Millrose aims to expand its customer base, approximately 80% of its portfolio as of Q3 2025 was with Lennar. The existing agreements with Lennar are described as highly favorable to Lennar, giving them significant control and advantageous terms, while Millrose receives no upside from land value appreciation. This dependency on a single large customer exposes Millrose to substantial risk if Lennar's purchasing decisions change or its financial health deteriorates.
2. Real Estate Market Volatility: Millrose Properties operates in the specialized Real Estate Investment Trust (REIT) industry and is directly impacted by the broader real estate market. The company's business model, which involves acquiring and developing land for sale to homebuilders, is sensitive to shifts in the real estate market. Slowing momentum, ongoing sector volatility, and a potential downturn in the housing market could adversely affect demand from homebuilders for land purchase options. The failure of homebuilders to exercise these options could significantly impact Millrose's operations and financial performance. Furthermore, Millrose has a geographic concentration in key states like California, Texas, and Florida, making it vulnerable to localized market weaknesses in these regions.
3. Leverage and Capital Needs: Millrose Properties' business model requires substantial capital for land acquisition and development. While the company has recently undertaken senior note offerings to enhance liquidity, this increased debt materially shifts its risk balance. Concerns exist regarding the sustainability of its dividend and the company's ability to grow into its valuation amidst an elevated debt load. Millrose acknowledges the ongoing need for additional capital to support its growth initiatives and operations, indicating that securing future funding and managing its debt profile remain critical risks.

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Millrose Properties (NYSE: MRP) primarily operates in two main areas: the acquisition, ownership, and development of industrial and logistics properties, and providing operational and capital solutions for residential homebuilders and land development companies through its Homesite Option Purchase Platform (HOPP'R).

For its Homesite Option Purchase Platform (HOPP'R), Millrose Properties addresses a market within the U.S. residential construction sector. The U.S. residential construction market was valued at approximately $590 billion in 2024 and is projected to grow at a Compound Annual Growth Rate (CAGR) of over 3% from 2024 to 2029. Millrose Properties also has a geographic concentration in California, Texas, and Florida for its portfolio.

While Millrose Properties also engages in the industrial and logistics properties sector, the provided information does not offer a specific addressable market size for their involvement in this segment. Therefore, it is not possible to quantify the addressable market for this particular product/service based on the available data.

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Here are 3-5 expected drivers of future revenue growth for Millrose Properties (MRP) over the next 2-3 years:

1. Expansion and demand for the Homesite Option Purchase Platform (HOPP'R): Millrose Properties' core business model, the HOPP'R system, is consistently cited as a significant driver of revenue. The company focuses on recycling homesite sale proceeds and deploying newly raised capital into additional land acquisitions and development to maximize returns. This strategy demonstrates the continuous growth and effectiveness of their platform in generating cash for investors.
2. Diversification and growth of strategic partnerships beyond Lennar: Millrose is actively expanding its network of builder counterparties beyond its primary agreement with Lennar. The company has recently expanded its third-party invested capital and entered into new significant partnerships, including a $3 billion land banking capital commitment with Taylor Morrison and a $500 million homesite portfolio transaction with New Home Company. This expansion to a broader customer base provides new avenues for revenue generation and reduces reliance on a single partner.
3. Increased funding and capital deployment into new land acquisitions: Management has provided forward guidance indicating a substantial increase in new transaction funding. The company raised its guidance for year-end 2025 new transaction funding under "Other Agreements" to $2.2 billion. This commitment to deploying significant capital into new land acquisitions and development directly fuels their homesite option platform and is expected to drive future revenue.
4. Leveraging structural tailwinds in the housing market: Millrose Properties is poised to benefit from the ongoing structural undersupply of housing units in the U.S. market, which creates sustained demand for its homesite delivery system. Despite cyclical headwinds, the company capitalizes on historically high homebuilder margins, further contributing to its revenue growth.
5. Strategic expansion into the build-to-rent (BTR) housing market: Millrose is making a strategic pivot and expanding its presence in the build-to-rent housing market. This move is seen as a key driver for future growth, with the potential to re-rate the stock as cash flows from this segment become more recurring and predictable, similar to a traditional REIT structure.

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Share Issuance

• Millrose Properties was spun off from Lennar Corporation on February 7, 2025, with Lennar distributing approximately 80% of Millrose's common stock to its shareholders at a 1:2 ratio.
• As of June 30, 2025, the company had 154,183,686 Class A common shares and 11,819,811 Class B common shares issued.
• Executives confirmed in Q2 2025 that there were no plans for equity issuance.

Inbound Investments

• As part of the spin-off from Lennar, Millrose Properties' initial assets included approximately $5.5 billion in land and $1 billion in cash as of September 30, 2024.
• In Q3 2025, Millrose completed $2.0 billion in senior notes offerings, which were used to replace short-term bridge capital.

Outbound Investments

• In Q2 2025, Millrose deployed $813 million with third-party customers, expanding its homesite inventory and other related assets to approximately $1.3 billion and invested capital to $1.1 billion outside the Lennar Master Program Agreement.
• This included a $500 million land banking investment provided to New Home Company, supporting its acquisition of Landsea Homes Corporation.
• In Q3 2025, an additional $770 million was deployed under other agreements, increasing homesite inventory and other related assets to approximately $2.0 billion and invested capital to $1.8 billion outside of the Lennar Master Program Agreement.

Capital Expenditures

• Shortly after the spin-off in Q1 2025, Millrose acquired 24,000 homesites from Rausch Coleman Homes for $859 million in cash.
• In Q2 2025, Millrose redeployed $718 million in land acquisitions and development funding with Lennar.
• The company redeployed $858 million in land acquisitions and development funding with Lennar in Q3 2025.