Highlights

  • Second quarter 2026 revenue rose 32% to $196.9 million, led by option fee revenues of $195.4 million.
  • Net income reached $125.9 million, or $0.76 per share, compared with $112.8 million, or $0.68 per share, a year earlier.
  • Interest expense rose to $40.0 million from $10.3 million, with $2.0 billion of senior notes issued since August 2025.
  • Lennar accounted for 72% of second quarter revenues, and the board declared a dividend of $0.77 per share.

Millrose Properties (NYSE:MRP) shares were trading near their 52-week low at USD 22.98 on October 21, 2026, down 2.07%. The land and homesite company signed a new credit agreement on March 25, received a payoff of about $284 million on a development loan on April 1, and reported second quarter results in a quarterly report filed on August 4.

Based in Miami, Florida, Millrose is a Maryland corporation formed on March 19, 2024 that became an independent public company on February 7, 2025, when it was spun off from Lennar. It buys and develops residential land and sells finished homesites to homebuilders through option contracts with predetermined costs and takedown schedules, collecting recurring option fees along the way. It also makes development loans secured by single-family property. Millrose reports a single segment, operates in the United States and is externally managed by Kennedy Lewis Land and Residential Advisors, which employs all personnel.

Revenue and Earnings in the Quarter

For the three months ended June 30, 2026, total revenues were $196.9 million, up from $149.0 million a year earlier. Option fee revenues rose to $195.4 million from $141.1 million, which the company attributed to geographic expansion and a broader counterparty base. Development loan income fell to $1.5 million from $7.9 million because of the April 1 payoff.

The management fee, set at 1.25% of tangible assets, rose to $29.9 million from $22.0 million as homesites under option increased. Income from operations was $167.6 million compared with $126.9 million. Net other expense widened to $39.3 million from $9.3 million, as interest expense on the credit agreement and senior notes reached $40.0 million. Net income was $125.9 million, or $0.76 per basic and diluted share, versus $112.8 million, or $0.68. A lower allowance for credit losses after the loan payoff also contributed.

The company also reports adjusted funds from operations (AFFO), a non-GAAP measure, which was $127.6 million, or $0.77 per diluted share, compared with $115.0 million, or $0.69.

Portfolio, Customer Concentration and Financing

At June 30, 2026, homesites under option contracts totaled $9.60 billion on the balance sheet. Invested Capital, a non-GAAP measure that is the balance on which option fees are paid, was $8.80 billion. The company held 143,771 homesites with 19 counterparties across 73 pools under its multiparty cross agreements.

Customer concentration remains a feature of the business. Lennar represented $141.5 million, or 72%, of total revenues in the quarter. Millrose also needs Lennar's prior approval if third-party financing would push its debt to equity ratio above 1:1, and it cannot pledge pooled assets that mix Lennar-acquired homesites with those of other counterparties without Lennar's written consent.

The March 25 credit agreement provides a four-year revolving facility of $1.335 billion and a $500 million delayed draw term loan available for one year, plus an uncommitted accordion of up to $2.5 billion in total commitments. Borrowings follow a borrowing base, and covenants on leverage, interest coverage and tangible net worth are tested quarterly. The company also has $1.25 billion of 6.375% notes due 2030 and $750 million of 6.250% notes due 2032, and reported compliance with all covenants.

Cash was $34.2 million at June 30, with about $850 million available under the revolver and $500 million under the delayed draw facility.

Dividends and Outlook

Millrose paid dividends of $0.75 per share on January 15 and $0.76 on April 15, and declared $0.77 on June 23 for stockholders of record on July 6, paid on July 15. It intends to make regular distributions of at least 90% of REIT taxable income, subject to board approval and factors such as liquidity, covenants and Maryland law.

The filing does not give numerical guidance. Management says it believes cash on hand, operating cash flow and available capacity under its credit facilities will meet liquidity needs in the short and long term. It adds that this depends on operating performance and real estate market conditions, and that it may raise further capital or borrow.