Millrose Raises AFFO Run-Rate Outlook to $0.82–$0.84 per Share After Record Quarter
Key Facts
Millrose Properties reported third-quarter results on October 27, posting earnings per share of $0.78, above the average analyst estimate of $0.76. The company said AFFO was $0.80 per share, marking its sixth consecutive quarterly increase. Management raised its year-end quarterly AFFO run-rate outlook to a range of $0.82 to $0.84 per share. The board also authorized a new $250 million share repurchase program. The results therefore combined an earnings beat, higher guidance and an additional option for returning capital to shareholders.
Year over year, net income rose 24% to $130 million in the third quarter of 2026, compared with $105.1 million in the same period a year earlier. AFFO per share increased to $0.80 from $0.74. In the second quarter of 2026, the company reported net income of $125.9 million, or $0.76 per share, and AFFO per share of $0.77. Revenue in that quarter reached $196.9 million. These figures show continued improvement in net income and AFFO per share between the second and third quarters, alongside their year-over-year growth in the third quarter.
Chief Executive Darren Richman said the record quarter resulted from "underwriting discipline, the resilience of our platform and its ability to adapt in a challenging housing market." The company said it redeployed $1.3 billion into land purchases and development financing during the quarter. Millrose, in turn, generated $0.8 billion in net cash proceeds from the sale of residential sites. These figures describe a capital deployment cycle combining financing and land acquisitions on one side with proceeds from site sales on the other. Richman linked the higher outlook to cash flow durability and disciplined capital allocation.
In a separate capital allocation move, the board authorized a $250 million share repurchase program in October. Purchases may be made in the open market or through privately negotiated transactions. The authorization does not require the company to buy a specific number of shares. Richman said the program was the company’s first of its kind and reflected management’s confidence in cash flow durability and its commitment to disciplined capital allocation. He also noted that the company raised its outlook for the remainder of the year alongside approval of the program.
After the quarter ended, Millrose completed $1.1 billion in capital support tied to Dream Finders Homes’ acquisition of Beazer Homes. The company had announced in August that it was prepared to provide up to $1.25 billion in support to finance the proposed acquisition. Millrose said about 42% of its asset base was invested outside the Lennar agreement after the Dream Finders financing was completed. At the end of the second quarter, residential sites subject to option contracts and related assets totaled $9.7 billion, while total liquidity was $1.4 billion. Those figures provide context on asset scale and liquidity before the third-quarter results, while the subsequent financing shows the expansion of investment outside the Lennar agreement.
The company announced on October 7 that results for the quarter ended September 30 would be released before the market opened on October 27, with an investor call the same day at 10:00 a.m. Eastern time. The results were released as scheduled, and the call covered results, developments and the outlook. On October 26, MRP shares closed at $23.91. The closing price preceded the announcement by one day, while the published results included an earnings-per-share beat and a higher year-end quarterly AFFO outlook. Management, according to its statements, remained focused on cash flow durability and capital allocation.