Key facts
- Millrose Properties reported Q2 2026 revenues of $196.9 million, up from $149 million year-over-year.
- Adjusted funds from operations (AFFO) increased to $127.6 million from $115 million.
- The company's land portfolio grew to 143,771 home sites.
- Millrose expanded its third-party partnerships to 18, up from 11.
- The company entered the multifamily sector through a partnership with JPI.
- Millrose plans to provide up to $1.25 billion in financing for Dream Finders Homes' acquisition of Beazer Homes.
Millrose Properties, a company specializing in residential development land-banking, has reported strong second-quarter fiscal year 2026 financial results, demonstrating continued growth and resilience despite a challenging national housing market. The company's total revenues climbed to $196.9 million, a significant increase from $149 million in the same period last year. Adjusted funds from operations (AFFO), a key measure of cash flow, rose to $127.6 million from $115 million.
The expansion of Millrose's land portfolio was also evident, with the number of home sites growing to 143,771, up from approximately 129,000 a year ago. The company has also broadened its network of third-party partners, increasing from 11 to 18. A notable aspect of this growth is the diversification of its capital deployment, with about 32% of invested capital now outside the foundational Lennar Master Program Agreement, doubling from the previous year.
Millrose executives attribute their success to a robust risk-mitigation strategy, which has resulted in zero option terminations across its land-banking platform since its inception as a public company. This is achieved through substantial deposits and cross-termination pooling mechanisms. The company emphasizes its selectivity in choosing partners, prioritizing stronger builders, less complex developments, and greater margins of safety, focusing on entitled land in supply-constrained markets.
In a strategic move to broaden its reach, Millrose has entered the multifamily sector through a land-banking agreement with JPI. This marks a new use case for its platform, though executives view it as an opportunistic expansion rather than a core strategy shift. Millrose also reiterated its commitment to provide up to $1.25 billion in acquisition financing and land-banking capital to support Dream Finders Homes' proposed acquisition of Beazer Homes.
Millrose leadership argues that current market conditions, including mortgage rate volatility and the industry's shift towards land-light models, validate the necessity of their off-balance-sheet land financing solutions. They believe this structural evolution in capital allocation among builders supports sustained demand for their services, even as national housing starts face headwinds.