Millrose Reports Q2 Growth as Builder Partnerships Expand

Millrose Reports Q2 Growth as Builder Partnerships Expand

Lennar Corporation spin-off Millrose Properties has released its second-quarter financial results for 2026, detailing revenue growth and an expanded portfolio of home sites. The company, which began trading independently less than 18 months ago, continues to build its land-banking platform through new agreements while navigating a fluctuating housing market.

Millrose reported total revenues of $196.9 million for the quarter, an increase from $149 million in the prior-year period. Adjusted funds from operations (AFFO) rose to $127.6 million, compared to $115 million a year earlier. The company’s portfolio of home sites grew to 143,771, up from approximately 129,000 at the same time last year.

A key component of Millrose’s strategy involves diversifying its capital deployment beyond its foundational relationship with Lennar. The firm noted that 32% of its invested capital is now allocated outside of the Lennar Master Program Agreement, roughly doubling the share from one year ago. This shift is supported by new partnerships, including agreements with multifamily operator JPI and Dream Finders Homes.

The number of third-party partners working with Millrose increased to 18 by the end of Q2, up from 11 a year prior. The company reported zero option terminations across its platform during the quarter, a metric it attributes to its risk-mitigation processes.

During the earnings call, CEO Darren Richman stated that the industry’s movement toward “land-light” models represents a structural change in capital allocation rather than a temporary reaction to current market conditions. Executive commentary suggested that mortgage rate volatility is driving builders to seek off-balance-sheet financing solutions to secure lot pipelines for 2028 and 2029.

Lennar shares were trading at $87.86 on Tuesday, reflecting a gain of over 3.9% for the session.

What to watch

• Future partner additions: Monitor whether Millrose continues to increase its count of third-party partners beyond the current 18.
• Capital allocation trends: Watch for the percentage of invested capital deployed outside the Lennar Master Program Agreement in future quarters.
• Portfolio growth: Track the total number of home sites in the portfolio as the company pursues land-banking agreements.

Source: original release