| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 10.3x | 17.8x | Top tier | |
Growth | 94 | — | 7.1% | Top tier | |
Quality | 89 | 8.3% | 4.5% | Top tier | |
Safety | 68 | 3.7x | 2.6x | Top tier | |
Capital Return | 52 | 9.87% | 2.12% | Around median | |
Momentum | 39 | -18.4% | 2.9% | Bottom tier | |
Sentiment | 85 | 2 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Millrose Properties operates as a permanent-capital platform for the housing sector, financing land ownership and development for homebuilders in exchange for recurring option fees and income from development loans. In fiscal Q2 2026, the platform owned approximately 144 thousand homesites across 877 communities in 30 states, and invested capital reached $8.8 billion. The Master Program Agreement with Lennar accounted for approximately 68% of invested capital, while other agreements accounted for 32% and were the primary driver of growth and diversification.
In fiscal Q2 2026, revenue was $196.9 million, compared with $194.9 million in fiscal Q1 2026, while net income was $125.9 million and diluted earnings per share were $0.76. These results equate to a calculated net income margin of approximately 63.9%, while operating activity consisted primarily of $195.4 million in recurring option fees and $1.5 million in development loan income. AFFO was approximately $127.6 million, or $0.77 per diluted share, following the early repayment of $284 million in development loans on the first day of the quarter.
Millrose recycled $1 billion in proceeds from builders taking down land and repaying development loans during fiscal Q2 2026, then deployed $1.1 billion into new opportunities without changing its underwriting standards. The AFFO run rate upon exiting the quarter was $0.80 per share, at the high end of the range provided by management, while available liquidity reached $1.4 billion and the debt-to-capital ratio remained at 30%. The company also increased its quarterly dividend for the sixth consecutive time to $0.77 per share and said it was fully covered by recurring earnings.
Automated analysis for informational purposes only — not investment advice.
The stock's 52-week range extends from $26.30 to $35.45, while book value was $35.24 per share at the end of fiscal Q2 2026, near the historical high end of the range. Analyst consensus rates the stock a “Buy,” but its valuation should balance AFFO of $0.77 per share for the quarter and an exit run rate of $0.80 on one hand, against the risks of having 68% of capital concentrated with Lennar and the housing sector's sensitivity to interest rates on the other.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Millrose generates its income primarily by providing permanent capital to own and develop land for homebuilders, then collecting recurring option fees when the counterparty retains its right to take down the land. In fiscal Q2 2026, option fees generated $195.4 million, compared with $1.5 million in development loan income. Total revenue was $196.9 million, demonstrating that option fees are the dominant source of income. Invested capital supporting this income reached $8.8 billion at the end of the quarter.
The Master Program Agreement with Lennar represented approximately 68% of invested capital at the end of fiscal Q2 2026, making it the largest foundation of the portfolio. By comparison, other agreements represented 32% and generated a weighted average return of 10.6% during the quarter. Millrose added two new relationships in that quarter, bringing its counterparty base to 19. This expansion gradually reduces concentration, but does not eliminate the significant importance of the Lennar agreement.
AFFO was approximately $127.6 million, or $0.77 per diluted share, in fiscal Q2 2026. The company declared a quarterly dividend of $0.77 per share, totaling approximately $127.9 million, and said it was fully supported by recurring earnings. This was the sixth consecutive quarterly dividend increase, while the annualized return on book equity was 8.8% according to management's presentation. The AFFO run rate upon exiting the quarter also reached $0.80 per share after the redeployment of loans that were repaid early.
In fiscal Q2 2026, Millrose entered into a land banking relationship with JPI, a wholly owned subsidiary of Sumitomo Forestry. The relationship represents the platform's first expansion into multifamily assets, but it remains within residential real estate and does not signify a move into commercial sectors such as retail or industrial. Management said the transaction's structure focuses on land and horizontal improvements and that its return is consistent with the company's other agreements outside Lennar. It also described the transaction as accretive to earnings and offering a good risk-adjusted return, while expansion in this area remains opportunistic rather than a comprehensive strategic shift.
Management noted on the August 4, 2026 call that homebuilders are facing a fourth consecutive year of mortgage rates above 6%, alongside elevated incentives and particular weakness in the first-time buyer segment. Fiscal 2026 delivery guidance was also declining among the largest public homebuilders, reflecting difficult near-term demand. Conversely, Millrose said homebuilders are increasingly turning to off-balance-sheet land financing to avoid sacrificing communities planned for 2028 and 2029. Therefore, market weakness could increase demand for Millrose's capital, but it simultaneously raises the risks of land underperformance and option terminations if conditions deteriorate further.
Millrose recorded no option contract terminations from the platform's inception through fiscal Q2 2026, but management emphasized that this does not preclude future terminations. Protection depends on land valuation, project margin, the deposit, and credit enhancements, with an average underwritten gross margin of 21% for new transactions during the four quarters ended in that quarter. The deposit in the portfolio is currently approximately 10%, compared with a historical range of 20% to 25%, with the difference determined by the form of credit enhancement in each transaction. Contingency plans include modifying the takedown schedule, bringing in another homebuilder, or using the land for build-to-rent or scattered-site rental housing.
