Millrose Properties (MRP) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 net income of $122.9 million ($0.74 per share) and AFFO of $125.9 million ($0.76 per share), reflecting strong recurring earnings and platform strength.

• Expanded builder relationships to 17 counterparties, including a top-10 national builder, with $989 million redeployed in land acquisitions and development funding.

• Total assets reached $9.6 billion and invested capital $8.7 billion as of March 31, 2026, with liquidity of $1.5 billion and a 29% debt-to-capitalization ratio.

• Significant redeployment of takedown proceeds into new acquisitions, with continued diversification outside the main customer agreement.

• Converted credit facility to a fully unsecured structure, adding a $500 million delayed draw term loan and expanding total capacity to over $1.8 billion.

Financial highlights

• Total revenues reached $194.9 million, primarily from option fees ($185.3 million) and development loan income ($9.6 million).

• Book value per share was $35.26; quarterly dividend of $0.76 per share (8.7% yield on book equity) declared and paid.

• Management fee expense was $28.2 million (1.25% of gross tangible assets); interest expense was $39.2 million.

• Operating expenses were $28.8 million, down from $37.1 million in Q1 2025, reflecting transition to a management fee structure.

• Generated $726 million in net cash proceeds from homesite sales in Q1 2026.

Outlook and guidance

• Reaffirmed prior guidance, expecting to deploy $1 billion of additional invested capital by mid-2026 using existing debt capacity.

• Targeting Q2 2026 exit quarterly AFFO run rate of $0.78–$0.80 per share and up to $2 billion in net new capital deployment for full year 2026, implying ~10% year-over-year AFFO per share growth.

• Management expects continued growth through geographic expansion and counterparty diversification, with robust platform demand and a deep pipeline.