Millrose Properties, Inc. Class A

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Milrose Properties Third 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 that time, press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I will now turn the call over to Jesse Ross, Melrose Head of Financial Planning and Analysis. Jesse, you may begin.

Good morning. Thank you for joining us. With us today to discuss our third quarter 2025 results are Darren Richman, our Chief Executive Officer and President, Robert Nicken, our Chief Operating Officer, Garrett Rosenblum, our Chief Financial Officer, Adil Pasha, our Chief Technology Officer, and Stephen Hensley, our 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 third quarter 2025 financial and operational results announcements, as well as the third quarter investor presentation we released and posted on our website under the investor relations heading for a discussion of these matters. With that, I'll turn the call over to Darren.

Thank you, Jesse, and good morning, everyone. I'm pleased to report that Milrose delivered another strong quarter, demonstrating the effectiveness of our disciplined capital deployment strategy and the growing demand for our home site option platform. Our approach centers on recycling home site sale proceeds and investing newly raised capital to maximize returns for our shareholders. This quarter, we generated $852 million in net cash proceeds from home site sales, including $766 million from Lennar, and redeployed $858 million in new land acquisitions and development funding with Lennar. We also saw $770 million in funding outside the Lennar Master Program Agreement, which underscores the broad-based market demand and scalability of our platform. As we continue to expand our homebuilder relationships, we now partner with 12 distinct counterparties. Our invested capital outside the LNR reached $1.8 billion with home site inventory and other related assets totaling $2 billion at a weighted average yield of 11.3%. Our portfolio now spans approximately 139,000 home sites across 875 communities in 30 states, reflecting our national reach and operational excellence. A key differentiator for Melrose is our proprietary technology platform. This strategic asset enables us to manage nearly 140,000 home sites, automate transaction management, and leverage AI for unique market insights and operational efficiency. Our technology allows us to scale faster, integrate acquisition seamlessly, and deliver unmatched agility to our builder partners. It also provides early warning indicators in real time when we see pace and price failing to meet underwriting expectations. This allows us to constantly recalibrate our due diligence monitors using real-time information. We have Adil Pasha, our CTO, on hand to profile our systems and the strategic mode that it represents. Our discipline underwriting and risk management are central to our business model. By structuring transactions with meaningful deposits and cross-termination pooling mechanisms, we continue to mitigate risk and maintain prudent standards even as we grow. We further strengthened our balance sheet this quarter by completing $2 billion in senior note offerings, replacing short-term bridge capital with long-term debt at favorable rates. With approximately $1.6 billion in total liquidity and a conservative debt to capitalization ratio of 25%, Millrose is well positioned for continued growth and capital efficiency. Melrose is pioneering a new era in institutional land banking, offering a scalable asset light capital solution for home builders. As the only national public platform dedicated solely to residential home site capital, we provide certainty and reliability that private capital sources cannot match. Our partners consistently tell us that this certainty is a key reason they choose Melrose Despite ongoing market challenges, our business model resilience and risk mitigation features have enabled us to deliver strong performance and expand our partnerships. We maintain high conviction in the long-term housing market and are confident that Millrose is exceptionally well positioned to capture accelerated demand as conditions improve. Our platform is helping builders navigate affordability pressures and inventory challenges. providing flexible capital solutions that support their growth and operational efficiency. It is important to highlight that we are quickly approaching the point of terminal velocity where shareholders will benefit from the optimization of our balance sheet for an entire fiscal period. As our capital structure reaches its most efficient state, we anticipate that shareholders will increasingly realize the benefits of our scale and disciplined approach. enabling us to reinvest in higher return opportunities and maintain robust liquidity, all while supporting our competitive position in the sector. With these advantages, we are confident that we can continue to deliver value for our partners and stakeholders as we pioneer new solutions in institutional land banking and further solidify our leadership in the market. Our strong operational results enabled us to increase our quarterly dividend to 73 cents per share representing an 8.2% dividend yield based on our book value. Based on our momentum, we are raising our guidance for year end AFFO run rate to 74 to 76 cents per share and increasing our full year 2025 new transaction funding target under other agreements to 2.2 billion. We are pleased to note that this target is above our reach goal of 2 billion. We remain committed to distributing 100% of our AFFO to shareholders, reinforcing our alignment with shareholder interests. In closing, our third quarter results demonstrate that our capital redeployment strategy is working effectively across all aspects of our business. We look forward to continuing this momentum and sharing our progress next quarter. Thank you for your continued support, and with that, I'll hand the call over to Rob.