Millrose Authorizes $250 Million Share Repurchase and Raises AFFO Run-Rate Target to $0.84
Key Facts
On October 26, Millrose Properties’ board authorized a $250 million Class A share repurchase program, as the company raised its year-end 2026 quarterly adjusted funds from operations (AFFO) run-rate guidance to $0.82–$0.84 per share. The company said in its results release that AFFO was $0.80 per share in the third quarter, marking its sixth consecutive quarterly increase. The guidance indicates a targeted quarterly run rate at year-end, not a confirmed fourth-quarter result. The program gives the company the option to buy shares in the open market or through privately negotiated transactions, depending on market conditions. The authorization does not require Millrose to buy a specified number of shares, and the company may suspend or terminate it.
The higher guidance followed quarterly results showing net income of $130.0 million, or $0.78 per share, and revenue of $211.0 million. The company reported AFFO of $133.5 million, or $0.80 per share. Year over year, revenue rose from $179.260 million in the third quarter of 2025 to $211.004 million in the third quarter of 2026. Net income also increased from $105.077 million to $130.002 million over the same period. AFFO per share rose from $0.74 to $0.80, extending the consecutive quarterly increase streak.
Chief Executive Officer Darren Richman attributed the record results to disciplined underwriting and the platform’s ability to adapt in what he described as a challenging housing market. He said the company sees resilient cash flows and capital allocation discipline as the foundation for the new guidance and repurchase program. On the earnings call, management said it intends to distribute 90% of earnings and direct 10% to repurchases as long as the stock trades below book value. The CEO added that the company would not borrow to fund purchases or weaken liquidity or increase leverage for them. He said the year-end annual AFFO run rate would be above $3.30 per share, the level the company indicated on its year-end 2025 call.
The expanded capital return plan comes alongside a balance sheet with total assets of $10.6 billion as of September 30, 2026, and liquidity of $0.8 billion, including cash and availability under the revolving credit facility. Corporate debt stood at $3.1 billion, while the debt-to-capital ratio was 36%. Millrose’s portfolio comprises 156,729 homesites across 834 communities in 30 states, with a weighted average annual yield of 9.3%. During the quarter, the company expanded its counterparty base to 22 homebuilders and developers. It also redeployed $1.3 billion into land acquisitions and development financing across the portfolio.
After the quarter ended, Millrose completed approximately $1.1 billion in capital support related to Dream Finders Homes’ acquisition of Beazer Homes, which closed on October 20, 2026. The support included approximately $580 million in land financing after option deposits. It also included approximately $488 million in preferred equity in Dream Finders, net of original issuance, with a 12% dividend yield. As part of its investment diversification, the company acquired 1,233 completed single-family homes from Lennar across 18 states, at a total cost of approximately $333 million. The portfolio was funded with approximately $120 million of balance-sheet capital and $213 million of limited-recourse secured financing.
The company describes its build-to-rent single-family home investment as an experiment to assess rental performance, consumer behavior and financing structures. Management said on the earnings call that the initiative remains in a monitoring phase and that it will wait for additional data before deciding whether to expand it. The CEO linked the initiative to some prospective buyers’ difficulty qualifying for mortgages, estimating that more than 30% fail to qualify. He added that none of Millrose’s customers had canceled or threatened to cancel an agreement as of September 30. The latest quarterly cash distribution was $0.79 per share; it was declared on September 23 and paid on October 15 to shareholders of record on October 5.
In trading on October 27, the stock rose 1.38% to $24.24, compared with a previous close of $23.91, according to Investing.com coverage. The previous close was on October 26, before the third-quarter results were announced. Millrose is scheduled to hold a call to discuss results, developments and outlook on October 27, 2026, at 10:00 a.m. Eastern time. The call follows the announcement of the new guidance, third-quarter metrics and authorization details. It also gives management an opportunity to provide more detail on capital allocation and the experimental rental portfolio.