Millrose Properties (MRP) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $122.9 million ($0.74 per share), reflecting strong execution, recurring cash flow from option payments, and a 0.5% increase from the prior quarter.

• AFFO reached $125.9 million ($0.76 per share), supporting a quarterly dividend of $0.76 per share and reflecting robust platform performance.

• Expanded builder relationships to 17 counterparties, including a top-10 national builder, with 31% of the portfolio outside the anchor agreement.

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

• Platform enables builders to grow community count while maintaining capital efficiency and reducing balance sheet risk.

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 at quarter-end was $35.26.

• Dividend of $0.76 per share declared and paid, with an annualized yield of 8.7% on book equity.

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

• Total assets at quarter-end were $9.6 billion; liquidity was $1.5 billion, including $49 million cash.

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 intends to continue distributing AFFO as dividends and maintain regular payments of at least 90% of REIT taxable income.

• Early spring selling season indicators are constructive; continued robust engagement from builders.

• Liquidity is expected to remain strong, supported by cash flows from operations and available credit facilities.