Added to YB: 2025-04-01
Pitch date: 2025-03-30
MRP [neutral]
Millrose Properties, Inc.
+19.11%
current return
Author Info
Warden Capital is a real estate oriented investment firm sharing musings on public and private commercial real estate markets. Sign up for the newsletter.
Company Info
Millrose purchases and develops residential land and sells finished homesites to homebuilders by way of option contracts with predetermined costs and takedown schedules.
Market Cap
$4.9B
Pitch Price
$23.42
Price Target
N/A
Dividend
10.17%
EV/EBITDA
N/A
P/E
12.10
EV/Sales
11.64
Sector
Specialized REITs
Category
value
Musings on Millrose Properties
MRP (pass): Lennar's land bank spinoff at 0.67x BV. 8.5% yield on assets, 11% net after fees. Captive entity with unfavorable terms: 80-90% LTC financing at 7-10%, no upside on land appreciation, Lennar can pause payments. High risk land loans with no upside. Structurally flawed, but discount to BV and high yield deter shorting.
Read full article (7 min)