Sources
Millrose Properties (MRP) is a homesite development REIT spun off from Lennar Corporation (LEN) on February 7, 2025. It acquires and develops homebuilding sites, generating revenue through monthly option payments from builders. Core DH portfolio holding as of August 2026.
Lennar spun off MRP, retaining 20% and distributing 80% to LEN shareholders. MRP acquires and develops homebuilding sites, then sells them to homebuilders via option payment arrangements.
The value chain: MRP sits between raw land acquisition and home construction — it develops raw land into ready-to-build homesites, then builders purchase sites as needed via monthly option payments.
| Metric | Value |
|---|---|
| Invested capital | $8.706 billion |
| Lennar Master Program share | $5.973B (69%) |
| Q2 takedown payments | $1.005 billion |
| Capital redeployed | ~$1 billion |
| Average yield to MRP | 10.6% |
| Debt-to-capitalization | 30% (conservative) |
| Management fees | 1.25% of assets |
| Q2 revenue | $195.4 million |
| Net income per share | $0.76 |
| AFFO per share | $0.77 |
| Dividend declared | $0.77 (100% of AFFO) |
| Book value | $35.24/share |
| Market cap | $5.04 billion |
Risk: Massive slowdown in homebuilding would impact revenues.
Unique model: MRP develops homesites in exchange for option payments from builders who have reserved those sites. Revenue is annuity-like with growth potential by adding counterparties beyond Lennar.
| Date | Event |
|---|---|
| 2025-02-07 | Spun off from Lennar; begins trading |
| 2025-Q1 through 2026-Q1 | Acquires $2.733B outside capital from 17 counterparties |
| 2026-Q2 | $195.4M revenue, $0.77 dividend |
| 2026-06 | Dividend increased to $0.77 (+$0.01) |
| 2026-08 | Added to Dividend Hunter portfolio (August 17 Stock of the Week) |
Long MRP. Unique homesite development model provides annuity-like income. Conservative leverage (30% debt-to-capitalization). Room to grow by adding homebuilder counterparties beyond Lennar.