This $101 Million Bet Boosts Millrose Stake as Shares Jump 38% in a Year

Company Overview - Millrose Properties is a publicly traded real estate investment trust specializing in residential land banking through its Homesite Option Purchase Platform, enabling homebuilders to secure and control land positions while providing investors with income streams backed by residential real estate assets [6] - The company has a market capitalization of $5 billion, revenue of $411 million, net income of $191.8 million, and a dividend yield of 8% [4] Recent Transaction - On February 17, 2026, Brave Warrior Advisors disclosed a purchase of 3,224,632 shares of Millrose Properties, valued at approximately $101.14 million based on the fiscal fourth quarter 2025 average pricing [1][2] - Following this transaction, the MRP stake accounts for 6.0% of Brave Warrior's reportable U.S. equity AUM [7] Financial Performance - Millrose Properties generated $2.44 in net income per share and $2.58 in AFFO in 2025, with a quarterly distribution of $0.75 and a target of approximately 10% AFFO per share growth in 2026 [9] - The platform has around $8.5 billion of invested capital earning a 9.2% weighted average yield, with newer non-Lennar investments yielding closer to 11% [10] Investment Proposition - The company offers a differentiated investment proposition within the real estate sector, focusing on capital efficiency and unique market access [6] - The addition of Millrose Properties to a portfolio already anchored by large positions in various sectors tilts further toward asset-backed cash flow businesses with visible income streams [11]