Millrose Properties (NYSE:MRP) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Millrose Properties (NYSE:MRP) released its quarterly earnings data on Tuesday. The company reported $0.76 EPS for the quarter, topping the consensus estimate of $0.75 by $0.01, Zacks reports. The company had revenue of $196.85 million for the quarter. Millrose Properties had a return on equity of 8.13% and a net margin of 62.60%.

Here are the key takeaways from Millrose Properties’ conference call:

• Recurring earnings increased, with second-quarter AFFO of $127.6 million, or $0.77 per diluted share, and exit run-rate AFFO of approximately $0.80 per share. The company also raised its dividend for the sixth consecutive quarter to $0.77 per share.
• Invested Capital reached approximately $8.8 billion, while about $1 billion of repayments was redeployed into roughly $1.1 billion of new opportunities. Management said underwriting standards remained unchanged and reported no option terminations since the platform’s inception.
• Millrose continued to diversify beyond its Lennar relationship, with 32% of Invested Capital outside the Lennar Master Program Agreement and a new multifamily land-banking relationship with JPI, a Sumitomo Forestry subsidiary. Management views multifamily and potential industry M&A support as additional growth opportunities, though it described the multifamily expansion as opportunistic rather than a core strategy.
• The company cited disciplined builder land inventories, improving cycle times, leaner spec inventory, and stable or improving incentives as constructive market trends. Management said recent transactions continued to carry an average underwritten gross margin of approximately 21%, with no assumed home-price appreciation.
• Elevated mortgage rates, affordability pressures, incentives, and weaker delivery guidance across major public builders remain near-term housing headwinds. Although management is considering whether its leverage target can eventually rise above 33% to support opportunities such as M&A, it made no change to that limit and emphasized that investment-grade credit status and downside protection remain priorities.

Millrose Properties Stock Down 1.9%

NYSE:MRP traded down $0.55 during mid-day trading on Thursday, hitting $28.80. 548,263 shares of the company’s stock traded hands, compared to its average volume of 1,470,597. The company has a fifty day moving average of $28.80 and a 200 day moving average of $29.32. Millrose Properties has a twelve month low of $26.30 and a twelve month high of $36.00. The company has a market capitalization of $4.44 billion, a P/E ratio of 10.04 and a beta of 0.39. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.34 and a current ratio of 0.05.

Millrose Properties Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Monday, July 6th were paid a dividend of $0.77 per share. This is a positive change from Millrose Properties’s previous quarterly dividend of $0.76. The ex-dividend date was Monday, July 6th. This represents a $3.08 annualized dividend and a yield of 10.7%. Millrose Properties’s dividend payout ratio (DPR) is presently 110.39%.

Insider Activity

In other Millrose Properties news, insider Darren Richman purchased 40,000 shares of the company’s stock in a transaction dated Monday, May 11th. The shares were acquired at an average price of $27.31 per share, for a total transaction of $1,092,400.00. Following the completion of the purchase, the insider owned 84,000 shares of the company’s stock, valued at approximately $2,294,040. The trade was a 90.91% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Matthew B. Gorson acquired 4,500 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was bought at an average cost of $26.96 per share, with a total value of $121,320.00. Following the completion of the transaction, the director directly owned 35,750 shares in the company, valued at $963,820. The trade was a 14.40% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 240,532 shares of company stock valued at $6,567,048. Corporate insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd increased its holdings in Millrose Properties by 984.4% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,323 shares of the company’s stock worth $44,000 after buying an additional 1,201 shares during the period. NewEdge Advisors LLC acquired a new stake in shares of Millrose Properties in the first quarter worth $39,000. Advisors Asset Management Inc. purchased a new position in shares of Millrose Properties during the first quarter worth $45,000. Global Retirement Partners LLC lifted its position in Millrose Properties by 201.7% during the fourth quarter. Global Retirement Partners LLC now owns 1,765 shares of the company’s stock valued at $53,000 after purchasing an additional 1,180 shares during the period. Finally, Atlas Capital Advisors Inc. acquired a new stake in Millrose Properties during the 4th quarter worth about $89,000.

Analysts Set New Price Targets

Several research analysts have issued reports on MRP shares. Weiss Ratings cut shares of Millrose Properties from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, May 11th. Wall Street Zen downgraded shares of Millrose Properties from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of $37.67.

About Millrose Properties

Millrose Properties Corp is a publicly traded real estate investment trust that focuses on the acquisition, ownership and development of industrial and logistics properties. The company seeks to capitalize on the growing demand for modern warehouse facilities driven by e-commerce, freight distribution and last-mile delivery requirements. Millrose structures its investments to generate stable, long-term rental income through diversified lease agreements with industrial and logistics operators.

The firm’s core activities include sourcing strategically located industrial assets, overseeing property management operations and executing targeted development or renovation projects.