Millrose Properties plans $2 bln in net new capital deployment in 2026

Overview

• Homesite option platform's Q4 net income was $122.2 mln, with EPS of $0.74

• Q4 AFFO reached $125.6 mln

• Company plans $2 bln capital deployment in 2026, enhancing portfolio diversification

Outlook

• Millrose expects to deploy up to $2 bln in net new capital in 2026

• Company targets 2Q exit AFFO run rate of $0.78–$0.80 per share

• Millrose maintains maximum debt-to-capital target of 33%

Result Drivers

• YIELD EXPANSION - Yield increased to 9.2% driven by diversification strategy, with new investments outside Lennar generating 11% yields

• ZERO OPTION TERMINATIONS - Co maintained zero option terminations across portfolio despite affordability headwinds and macro uncertainty

• CAPITAL DEPLOYMENT - Co plans $2 bln in net new capital deployment in 2026, aiming to diversify beyond Lennar relationship

Company press release: ID:nBwbgssvpa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

• Wall Street's median 12-month price target for Millrose Properties Inc is $39.00, about 25.8% above its February 25 closing price of $31.00

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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