Millrose Properties, Inc. Class A

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Millrose Properties second quarter 2025 earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. I will now turn the call over to Jesse Ross, Milrow's Head of Financial Planning and Analysis. Jesse, you may begin your conference.

Good morning. Thank you for joining us. With us today to discuss our second quarter 2025 results are Darren Richman, our Chief Executive Officer and President, Robert Mitkin, our Chief Operating Officer, Garrett Rosenblum, our chief financial officer, and Stephen Hensley, senior market risk analyst. Before we begin, I'd like to remind everyone that this call may include forward-looking statements and discuss non-GAAP financial measures. Please refer to our second quarter 2025 financial and operational results announcement, as well as the second quarter investor presentation we released and posted on our website under the investor relations heading for discussion of these matters. With that, I'll turn the call over to Darren.

Thank you Jesse and good morning everyone. I am pleased to discuss our second quarter results, marking our first full quarter as a public company and a period of significant growth and execution for Melrose. We continue to deliver on our strategy to redefine how homebuilders and land developers access land capital. As a pioneer in the institutionalization of land banking services, Milrose offers homebuilders a unique permanent capital solution for the acquisition and development of residential home sites. Our innovative business model enables us to efficiently enter into option contracts with our homebuilder partners that facilitate just-in-time delivery of finished home sites for builders and predictable cash income yield for Milrose shareholders. Our financial performance in the second quarter underscores our dedication to disciplined capital investment and reflects strong demand for our scaled solutions-based approach. The payment of our first quarterly dividend reflects the visibility and consistency that our platform was purpose-built to offer. This illustrates the reliability of our economic model in which cash flows from contractual monthly option payments and ongoing capital redeployment deliver attractive recurring revenues that convert into the payment of timely and predictable dividends. Following the spinoff, Lennar continues to serve as our principal client, providing stable cash flows that support our financial performance. This quarter, we effectively demonstrated the value of our operational flywheel, recycling substantial proceeds from Lennar home sites, sales into new land acquisitions and development funding under the Lennar Master Program Agreement. This capital deployment is central to our strategy, enabling us to consistently generate returns on invested capital. We also expanded our partnerships with third parties, with invested capital away from the Lennar Master Program Agreement increasing to approximately $1.1 billion as of June 30th, demonstrating our value proposition to third-party home builders. During the quarter, we continued to pioneer new use cases for Millrose as a solution provider, facilitating the first-of-its-kind capital backstop in the take private of Lansing Home Corporation by New Home Co. Through this transaction, Millrose acquired a diversified portfolio of home sites under option with New Home with net cash funding of approximately $500 million. More recently, affiliates of Millrose's manager announced a significant capital partnership with Taylor Morrison to enable the growth of its industry-leading build-to-rent brand, Yardley. This is yet another important use case for home site option arrangements as a scalable capital solution. We expect most of this opportunity will be allocated to the Millrose platform. This partnership, like most of our forward flow relationships, provides for exclusivity to provide capital at agreed terms over a defined period of time. In the case of Yardley, affiliates of our manager have agreed to provide $3 billion of land banking capital for Yardley during the two and a half year term of the exclusivity agreement. With closings under the facility expected for Millrose starting in the third quarter, the partnership is anticipated to further accelerate Millrose's accretive growth and provide an important use case for diversification of our end markets into rental housing. As you can see, the market demand for our capital solution across the home building industry continues to be incredibly robust. We're seeing an environment where demand for Melrose's platform continues to support growing our capital base accretively. With our strong backlog, pipeline, and growing opportunities, We are increasingly confident in scaling mill roads and maintaining high returns. I had previously noted a $2 billion stretch target for year-end investment balance outside of the Lennar Master Program Agreement. This quarter's momentum has now shifted that stretch target to our base case, and we are accordingly raising guidance, as you'll hear from Garrett. Let me now take a moment to comment on recent market conditions. Stephen will have more to say in a few minutes. Our strategy is built for long-term success. While the broader underlying demand for home sites remains robust, we can't overlook the impact that affordability and waning consumer confidence has had and continues to have on certain end markets. As we mentioned last quarter, if we look at the longer term, strong structural tailwinds persist. We believe that there continues to be a significant shortfall in housing supply. Additionally, many of our builder clients are operating with historically high margins and strong balance sheets, highlighted by low leverage levels, positioning them and the industry for resilience and for future growth. Our collateral continues to hold up very well, benefited from prime locations and polling agreements. In summary, the second quarter highlighted the power of our platform, our team's execution, and the significant demand for the unique capital solution that we offer. We are excited about the opportunities ahead, and we remain committed to delivering value for our shareholders, homebuilder partners, and the communities we serve. With that, I will hand the call over to Rob for an operational update.