Millrose Properties, Inc.

Millrose Properties announced the pricing of a private offering of $1B in senior notes across two separate tranches. The transaction consists of $500M of 6.500% senior notes due 2029 and $500M of 6.750% senior notes due 2031, both priced at par, or 100.000% of their principal amount. The offering is scheduled to close on October 6, 2026. Millrose plans to use the net proceeds, combined with a $500M draw under its delayed draw term loan facility, for general corporate purposes, with primary allocations including funding the acquisition of homesites from the combined entity formed by the pending merger of Dream Finders Homes, Inc. and Beazer Homes, Inc. Proceeds will also be used to repay outstanding borrowings under Millrose's revolving credit facility, which had $850M in principal outstanding as of September 21, 2026. The 2031 notes feature a special mandatory redemption clause: if the Dream Finders transaction is not completed on or before May 13, 2027, Millrose will be required to redeem all outstanding 2031 notes using a portion of the offering's net proceeds, cash on hand, and/or revolver borrowings.

Millrose Properties, Inc. held its Q2 2026 earnings call, reporting that the platform recycled $1 billion in capital from takedowns and redeployed $1.1 billion into new opportunities while maintaining underwriting standards. The company announced a strategic expansion into multifamily assets through a new land banking relationship with JPI and is evolving into a strategic M&A partner, facilitating industry consolidation by providing land banking capital for large-scale acquisitions like the proposed DreamFinders-Beazer deal. The dividend was increased for the sixth consecutive quarter to $0.77 per share, representing an 8.8% annualized yield on book equity. Management is re-evaluating its 33% debt-to-capitalization leverage target, citing increased comfort with cash flow consistency, and expects to continue expanding its product suite to include more vertical construction financing. Guidance assumes a continued high-interest-rate environment, with the company planning for elevated mortgage rates into the distant future.

Millrose Properties announced its Board of Directors has declared a quarterly cash dividend of approximately $127.9 million, or $0.77 per share of Class A and Class B common stock. The dividend will be paid on July 15, 2026, to shareholders of record as of July 6, 2026. CEO Darren Richman stated the dividend reflects the company's consistent earnings and commitment to being a dependable capital partner for homebuilders.