Millrose Properties reports Q1 2026 earnings of $0.74/share, expands to 17 homebuilders

The company declared a quarterly dividend of $126.2 million, or $0.76 per share, consistent with its stated intention to distribute AFFO back to shareholders. The annualized dividend yield increased approximately 30 basis points compared to the prior quarter, representing an 8.7% dividend yield on equity.

During the quarter, Millrose funded $1.0 billion for land acquisition and development while receiving $0.7 billion in net takedown proceeds. The company significantly expanded its invested capital outside the Lennar Master Program Agreement by $365 million, bringing that portfolio to $2.7 billion with a weighted average yield of 10.7% as of March 31, 2026. This demonstrates continued diversification beyond the Lennar relationship.

Millrose amended and restated its credit agreement to add a new $500 million term loan commitment, expanding total floating rate unsecured debt capacity under the facility to $1.835 billion. As of March 31, 2026, the company had $425 million outstanding on its revolving credit facility and total liquidity of $1.5 billion.

As of March 31, 2026, Millrose reported total assets of $9.6 billion and a net investment balance (invested capital) of $8.7 billion. The company maintained a conservative leverage profile with 29% debt to capitalization.

Millrose reported first quarter 2026 net income of $122.9 million ($0.74 per share) on total revenues of $194.9 million, consisting of option fees and development loan income. Adjusted Funds From Operations (AFFO), a non-GAAP measure excluding non-cash items, was $125.9 million or $0.76 per share. The company noted that Q1 had 90 days versus 92 days in Q4, creating a modest mechanical reduction in option fee income with no impact on the earnings trajectory.

Millrose converted its credit facility from secured to unsecured and added a $500 million delayed draw term loan commitment, bringing total capacity to $1.835 billion. This unsecured structure provides greater financial flexibility and reflects improved credit standing. As of March 31, 2026, the company had total liquidity of $1.5 billion and maintained a conservative debt-to-capitalization ratio of approximately 29%, well below its 33% maximum target.

Millrose reaffirmed its 2026 guidance, expecting to deploy approximately $1 billion in additional invested capital by mid-2026 and targeting a Q2 exit quarterly AFFO run rate of $0.78–$0.80 per share. For the full year, the company expects total net new capital deployment of up to $2 billion, implying approximately 10% year-over-year AFFO per share growth. Management stated that first quarter results and pipeline activity remain consistent with these expectations.