Millrose Properties Inc. has reported strong financial results for the second quarter of 2025, highlighting the success of its business model in generating cash flow and attractive recurring yields. The company reported a net income attributable to common shareholders of $112.8 million, or $0.68 per share, supported by $149.0 million in option fees and other related income. The Adjusted Funds From Operations (AFFO) for the quarter stood at $115.0 million, or $0.69 per share. The annualized return on equity increased by 20 basis points to 7.8% compared to the previous quarter on a normalized basis. During the quarter, Millrose generated $797 million in net cash proceeds from homesite sales, including $768 million from Lennar, and redeployed $718 million in land acquisitions and development funding with Lennar. The company also expanded its homebuilder relationships by deploying $813 million with third-party customers at a weighted average yield of 11.2%, reaching approximately $1.3 billion in homesite inventory and related assets. Additionally, Millrose closed a portfolio transaction with New Home Company and secured a $1 billion Delayed Draw Term Loan Commitment to bolster its capital capacity. Looking ahead, Millrose has raised its guidance for the year-end AFFO quarterly run rate to a range of $0.70 to $0.73 per share, reflecting increased transaction funding outside of the Lennar Master Program Agreement. As of June 30, 2025, the company maintained a conservative leverage profile with total assets of approximately $8.0 billion and liquidity of $1.4 billion, which includes cash and availability under its revolving credit facility.