MRP · Millrose Properties, Inc.

Millrose Properties began 2026 with solid execution, reporting Q1 net income of $122.9 million, or $0.74 per share, and AFFO of $125.9 million, or $0.76 per share. Results reflect a shorter 90-day calendar period compared to the prior quarter's 92 days, which mechanically reduced option fee income without impacting the earnings trajectory. The company highlighted the structural shift in the homebuilding industry, where builders are increasingly seeking capital-light lot access to preserve margins in a compressed environment. Millrose's platform is positioned to resolve the tension between sustaining community count growth and maintaining balance sheet discipline.

Operationally, the company expanded its counterparty base to 17 homebuilders, including the addition of a top-10 national builder. Invested capital outside the Lennar Master Program Agreement grew by $365 million to $2.7 billion, with a weighted average yield of 10.7%. The Lennar relationship remains foundational, providing $626 million in net cash proceeds from homesite sales during the quarter. The total portfolio maintained a weighted average annualized yield of 9.2%.

On the capitalization front, Millrose converted its credit facility to a fully unsecured structure and added a new $500 million delayed draw term loan commitment, expanding total capacity to $1.835 billion. This provides enhanced liquidity and flexibility for continued growth. The company maintains a conservative leverage profile with a debt-to-capitalization ratio of approximately 29%, well below its 33% target. Management reaffirmed its previously issued guidance, targeting a Q2 exit quarterly AFFO run rate of $0.78–$0.80 per share and expecting up to $2 billion in net new capital deployment for the full year 2026.