Core Insights - Millrose Properties is demonstrating a robust business model, evidenced by significant financial metrics, despite a reduction in stake by Brave Warrior Advisors [1][9] Financial Performance - Millrose Properties generated $852 million in net cash proceeds from homesite sales, with $766 million coming from home construction company Lennar [9] - Revenue for the latest quarter reached $179.3 million, while Adjusted Funds From Operations (AFFO) was $122.5 million, equating to $0.74 per share [9] - The company has a liquidity position of $1.6 billion, bolstered by $2 billion in newly issued senior notes [9] Market Position - As of September 30, Brave Warrior Advisors reduced its stake in Millrose Properties to 4.2% of reportable Assets Under Management (AUM) [2][3] - Millrose Properties shares are currently priced at $31, reflecting a 44% increase since their public-market debut in February [3][4] Business Model - Millrose Properties operates a Homesite Option Purchase Platform (HOPP'R), which facilitates residential land banking and provides homebuilders with access to controlled land positions [7] - The company's model allows for capital-light expansion for homebuilders through land option contracts and related real estate services [5][7] Investment Considerations - The company is noted for its rapid balance-sheet expansion and rising cash generation, although its shares now reflect a complex mix of growth, leverage, and execution risk [6][10] - Long-term investors may find Millrose's scalable, capital-light model appealing, but should remain aware of leverage and dependence on counterparties [10]