Taylor Morrison secures $3 billion financing facility for build-to-rent brand

SCOTTSDALE, Ariz. - Taylor Morrison (NYSE:TMHC) announced Wednesday it has entered into a $3 billion land and construction financing facility agreement with Kennedy Lewis Investment Management (KLIM) to support its build-to-rent brand, Yardly. The deal involves Millrose Properties Inc. (NYSE:MRP), which has seen impressive momentum with a nearly 48% return over the past six months, according to InvestingPro data.

The agreement provides financing capacity for existing and new land opportunities, land development, and construction costs for Yardly communities. According to the company, the facility will enhance capital flexibility and optimize value as Taylor Morrison considers future asset dispositions. With a market capitalization of $5.2 billion and a strong current ratio of 103.12, InvestingPro analysis shows Millrose Properties is well-positioned to support such strategic initiatives.

"This strategic financial facility agreement dedicated to our build-for-rent business will help to scale our existing core competencies of land acquisition, land development and efficient home construction," said Sheryl Palmer, Taylor Morrison Chairman and Chief Executive Officer, in a statement based on the company’s press release.

The homebuilder previously worked with KLIM through an existing land banking agreement for its for-sale operations. KLIM manages approximately $30 billion in assets.

Darren Richman, Managing Partner of Kennedy Lewis and CEO of Millrose Properties Inc. (NYSE:MRP), stated the transaction "demonstrates another use case for land banking as a capital solution to meet the diverse needs of our homebuilder counterparties." The company offers an attractive 8.84% dividend yield and maintains moderate debt levels, as revealed by InvestingPro’s comprehensive analysis, which includes 12 additional key insights available to subscribers.

The financing arrangement adds to Taylor Morrison’s existing land strategies, which include joint ventures, seller financing, deferred participation payments, and land banking.

Taylor Morrison’s Yardly brand focuses on single-family rental properties with private backyards and community amenities, targeting renters who may become future homebuyers.

The information in this article is based on a press release statement from Taylor Morrison.

In other recent news, Millrose Properties Inc. reported its first-quarter 2025 earnings, revealing a strong performance that exceeded market expectations. The company achieved earnings per share (EPS) of $0.39, surpassing analysts’ projections. Additionally, Millrose Properties reported actual revenue of $82.7 million for the quarter. These results highlight the company’s solid financial performance in the early part of the year. The earnings announcement has drawn attention from investors and analysts alike. Notably, the company’s performance has been positively received, as evidenced by the favorable market reaction. These recent developments underscore Millrose Properties’ position in the market.

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