Millrose Properties (MRP) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with net income of $122.2 million ($0.74/share) in Q4 and $404.8 million ($2.44/share) for the year, outperforming guidance and validating the business model in its first year as a public company.

• AFFO reached $125.6 million ($0.76/share) in Q4 and $427.9 million ($2.58/share) for the year, both ahead of guidance.

• Platform scaled to 142,000 homesites across 933 communities in 30 states, serving 15 builder counterparties, including 9 of the top 25 U.S. homebuilders.

• Invested capital outside the Lennar agreement grew by $2.4 billion in 2025, with 14–15 counterparties outside Lennar by year-end.

• Delivered over 31,000 homesites in 2025, maintaining zero option agreement terminations despite industry headwinds.

Financial highlights

• Q4 2025 net income: $122.2 million ($0.74/share); AFFO: $125.6 million ($0.76/share); total revenues: up to $189.5 million.

• Full-year 2025 net income: $404.8 million ($2.44/share); AFFO: $427.9 million ($2.58/share); total revenues: $600.5 million.

• Portfolio weighted average annualized yield: 9.2% at year-end; new investments outside Lennar generated 11.0% yields.

• Book value per share at year-end: $35.28–$35.29; total assets: $9.3 billion; total debt: $2.1 billion.

• Paid Q4 dividend of $0.75/share (8.4% annualized yield), distributing 100% of AFFO.

Outlook and guidance

• Plans to deploy up to $2 billion in new capital in 2026, targeting Q2 exit AFFO run rate of $0.78–$0.80/share and 10% AFFO per share growth.

• Conservative leverage policy maintained at or below 33% debt to capitalization; half of 2026 growth to be funded by existing debt capacity.

• Confident in pipeline visibility, with $9 billion in forward flow relationships and robust replacement cycle.

• Management expects similar capital deployment volumes in 2026, supporting further AFFO growth.