One does observe a certain… enthusiasm in the market regarding Millrose Properties. Brave Warrior Advisors, with a flair for the dramatic, has recently acquired a rather substantial tranche of shares – 3,224,632, to be precise – amounting to a cool $101.14 million. A perfectly respectable sum, naturally, and based on the fourth quarter’s pricing, if one is keeping score.
A Spot of Investing
According to the filings, Brave Warrior has increased its position in Millrose (MRP 0.26%) with a boldness that is almost… charming. The purchase, valued at approximately $101.14 million, reflects a calculated gamble on residential land banking. One notes the quarter-end value of their MRP holdings has swelled by $76.22 million – a tidy profit, wouldn’t you agree? Though one suspects the market is rarely so straightforward.
Further Observations
- The fund now holds 6.0% of its reportable U.S. equity AUM in Millrose. A significant commitment, or a temporary fancy? Time, as always, will tell.
- Their top holdings, for the record, are as follows:
- NYSE: OMF: $522.79 million (12.2% of AUM)
- NYSE: SNX: $475.21 million (11.1% of AUM)
- NYSE: ELV: $438.82 million (10.3% of AUM)
- NASDAQ: SLM: $347.23 million (8.1% of AUM)
- NYSE: AN: $320.61 million (7.5% of AUM)
- As of Wednesday, Millrose shares were trading at $30.70 – a 38% increase over the past year. A rather impressive performance, particularly when one considers the S&P 500’s comparatively modest 16% gain. One wonders if this is sustainable, or merely a fleeting moment of optimism.
A Brief Profile
| Metric | Value |
|---|---|
| Market capitalization | $5 billion |
| Revenue (TTM) | $411 million |
| Net income (TTM) | $191.8 million |
| Dividend yield | 8% |
The Business, Briefly
Millrose Properties operates a Homesite Option Purchase Platform (HOPP’R) – a rather clever name, don’t you think? – generating revenue by providing homebuilders with access to controlled residential land positions. They earn income through option fees and related services, offering investors exposure to residential land banking – a decidedly niche market. Their primary customers are homebuilders seeking capital-efficient expansion, and investors seeking income-generating opportunities. All frightfully sensible, really.
What Does it All Mean?
Brave Warrior, it seems, has placed a rather concentrated bet on a housing play that doesn’t actually own any finished homes. Millrose has constructed a land banking machine that generated $2.44 in net income per share and $2.58 in AFFO in 2025, while distributing $0.75 per quarter and targeting roughly 10% AFFO per share growth in 2026. Quite the performance, if one can overlook the inherent risks.
The platform currently holds roughly $8.5 billion of invested capital earning a 9.2% weighted average yield, with newer investments closer to 11%. That, combined with disciplined leverage at 26% debt to capital and a complete lack of option terminations in 2025, creates a steadier earnings base than many traditional housing plays. A reassuringly solid foundation, one hopes.
Within a portfolio already anchored by consumer finance, distribution, health insurance, and auto retail, adding a 6% weight here tilts further toward asset-backed cash flow businesses with visible income streams. If management can deploy up to $2 billion in new capital this year without overextending themselves, this could prove to be a remarkably astute move – even after the recent gains. Though, naturally, one should never count one’s chickens – or one’s profits – before they’ve hatched.
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2026-03-04 18:23