At a glance
Millrose Properties, Inc. is worth $4.21B, about 10 times its fiscal 2025 earnings. Revenue came to $600.5M in fiscal 2025, with 63.3% kept as profit. It pays a 12.1% dividend yield, and returned $298.8M to shareholders in dividends and buybacks over FY2023–FY2025. The stock returned −13.1% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
Millrose Properties is a land bank for homebuilders. It acquires residential land, funds its development into finished homesites (roads, utilities and sewers in place) and later delivers those lots to builders when they are ready to build. Builders can then grow without tying up cash in land. Millrose was spun off from homebuilder Lennar on February 7, 2025.
Builders sign option contracts: the right, but not the obligation, to purchase finished lots at a preset price and schedule. They pay a non-refundable deposit plus monthly option fees, Millrose's main income. When a builder “takes down” (purchases) a lot, it pays Millrose's land cost plus the agreed development budget, and that cash funds new land. In most contracts, a builder that walks away forfeits its deposit and owes a termination fee. Development loans add a smaller stream of interest income.
Millrose reports one segment and operates only in the United States. Lennar has been its main revenue source since the spin-off, though Millrose has added other builders, including through a deal for about 25,000 Rausch homesites and land banking for the New Home Company. As of December 31, 2025, it held 142,139 homesites in 933 communities across 30 states; 2025 revenue was about $600 million. An outside firm, Kennedy Lewis Land and Residential Advisors, manages it for a fee.
Price history
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MRP -13.1% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $196.9M, up 32.1% from a year earlier, and net income was $125.9M (+11.6%).
- For fiscal 2025, revenue was $600.5M (— year over year) with a 63.3% net margin.
Financial health check
| Operating margin | 80.9% good |
|---|---|
| Return on equity (FY2025) | 6.5% weak |
| Return on assets (FY2025) | 4.1% watch |
| Net cash (cash minus debt) | $-2.44B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | — | $-209.8M | — |
| FY2024 | — | $-246.2M | — |
| FY2025 | $600.5M | $379.9M | — |
Valuation snapshot
| Market value | $4.21B |
|---|---|
| P/E ratio | 10.4 |
| Dividend yield | 12.1% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MRP price data to Oct 28, 2026 | -4.8% | -13.1% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -4.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (24 read): 16 open-market purchases ($7.2M) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 11, 2026 | Darren Richman See Remarks | buy | $5.3M |
| May 11, 2026 | Darren Richman See Remarks | buy | $1.1M |
| Oct 28, 2025 | Patrick J Jr Bartels Director | buy | $244K |
| May 18, 2026 | Matthew B. Gorson Director | buy | $121K |
| Aug 10, 2026 | Matthew B. Gorson Director | buy | $86K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.8% | Jun 30, 2026 |
| Vanguard Portfolio Management | 10.07% | May 29, 2026 |
| FMR LLC | 5.3% | Jun 30, 2026 |
| Vanguard Capital Management | 5.26% | Mar 31, 2026 |
| Brave Warrior Advisors, LLC | 3.91% | Jun 30, 2026 |
| Greenhaven Associates, Inc. | 2.99% | Aug 18, 2025 |
ETFs with the most weight in MRP
| CSD Invesco S&P Spin-Off ETF | 2.5% |
| RZV Invesco S&P SmallCap 600® Pure Value ETF | 1.28% |
| PSCF Invesco S&P SmallCap Financials ETF | 0.88% |
| RWJ Invesco S&P SmallCap 600 Revenue ETF | 0.31% |
| QVMS Invesco S&P SmallCap 600 QVM Multi-factor ETF | 0.27% |
| FRI First Trust S&P REIT Index Fund | 0.26% |
| IJR iShares Core S&P Small-Cap ETF | 0.25% |
| SPSM SPDR Portfolio S&P 600 Small Cap ETF | 0.24% |
What could go wrong
- Heavy dependence on Lennar. Lennar has been the main revenue source since the spin-off but need not bring new deals. Its Capital Priority Right, a priority claim on Millrose's capital, also limits what Millrose can offer other builders.
- Builders can walk away from lots. The model depends on builders choosing to purchase finished lots. In a housing slump, they could forfeit deposits and pay termination fees instead, leaving Millrose to find other purchasers for the land.
- Falling home prices could hit land values. Lower new home prices could force Millrose to write down its land's book value. Land is hard to turn into cash, and Millrose got no independent appraisals of assets from Lennar or the Rausch deal.
- An outside manager with conflicts. Kennedy Lewis runs Millrose for substantial fees, under a contract rather than a fiduciary duty of loyalty. It can quit on 60 days' notice in some cases, and firing it could cost a large fee.
- A large debt load. As of June 30, 2026, Millrose had about $2.5 billion of debt, including notes paying 6.375% and 6.25%, and $34 million of cash. Rising rates or weaker income could squeeze dividends.
- Short record and limited shareholder control. Shares have traded only since February 2025. Millrose has two share classes, the Miller family, major Lennar shareholders, has substantial voting power, and Lennar keeps special Founder's Rights over some decisions.
Recent events
- Quarterly results released; Investor presentation or announcement; Other company announcement
- Major agreement signed; New debt or financial obligation
- Investor presentation or announcement; Other company announcement
- Other company announcement
- Major agreement signed; New debt or financial obligation
- Major agreement signed
- Major agreement signed
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement; Other company announcement
- Shareholder vote results
For income and retirement investors
Millrose pays a large dividend relative to its share price, but its record is very short. It intends to be taxed as a real estate investment trust (REIT), a status that generally requires paying out most taxable income as dividends, which are usually taxed as ordinary income. For 2025, dividends totaled $2.55 per share against diluted earnings of $2.44; cash dividends paid during 2025, about $299 million, equaled about 79% of net income. There is no record yet of dividend increases, and Millrose has not repurchased shares. The yield was 12.1% as of October 28, 2026, lifted partly by a falling share price: the stock lost 13.1% over the year to that date and had dropped as much as 31.5% from a prior high. Because trading began in February 2025, there is no record of how the shares held up in the 2008, 2020 or 2022 downturns. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Millrose Properties make money?
Mainly from monthly option fees paid by homebuilders. Millrose acquires residential land, funds its development into finished lots and grants builders the right, but not the obligation, to purchase those lots later at a preset price. Builders pay a non-refundable deposit plus monthly fees during the contract. When they purchase, Millrose recovers its land and development costs and reinvests the cash in new land. Interest on development loans adds a smaller amount. Revenue for 2025 was about $600 million, with net income of about $380 million.
Is Millrose Properties a REIT?
It intends to be taxed as one. In its annual report filed March 2, 2026, Millrose said it intends to elect to be taxed as a real estate investment trust (REIT) starting with its tax year ended December 31, 2025. A REIT generally avoids corporate income tax on income it pays out but must distribute most of its taxable income as dividends. Its main operating subsidiary, MPH Parent, is a taxable REIT subsidiary, so that part of the business pays full corporate tax.
What is Millrose Properties' relationship with Lennar?
Lennar created Millrose and spun it off on February 7, 2025, contributing about $5.5 billion of land, roughly 87,000 homesites, plus about $1.0 billion of cash. Lennar has been Millrose's main source of revenue since then. Through an exchange offer completed November 28, 2025, Lennar swapped its remaining stake of about 20% for Lennar shares held by investors, leaving it with a negligible amount. It keeps special Founder's Rights, including a priority claim on Millrose's capital, and the Miller family, major Lennar shareholders, holds substantial voting power.
What is Millrose Properties' dividend yield?
The dividend yield was 12.1% as of October 28, 2026. Dividends for 2025 totaled $2.55 per share, slightly above diluted earnings of $2.44 per share. The high yield partly reflects a falling share price: the stock lost 13.1% over the year to October 28, 2026. Because Millrose has paid dividends for only a short time, there is no record of increases. If Millrose is taxed as a REIT, its dividends would generally be taxed as ordinary income rather than at lower qualified-dividend rates.
Who manages Millrose Properties?
An outside firm, Kennedy Lewis Land and Residential Advisors LLC, runs Millrose under a management agreement signed February 7, 2025. Millrose took on no staff or systems from Lennar, so the manager supplies its people and technology, including a proprietary land banking database and planning system. Millrose pays the manager substantial fees, which cover most public-company costs. The annual report flags drawbacks: potential conflicts of interest, a contractual rather than fiduciary relationship, and a possibly large termination fee if Millrose ends the agreement.