Gilman Hill Asset Management initiated a new position in Millrose Properties (MRP 1.81%) in the third quarter, buying up an estimated $7.9 million worth of shares.
What Happened
According to a filing with the Securities and Exchange Commission released on Wednesday, Connecticut-based Gilman Hill Asset Management established a new position in Millrose Properties (MRP 1.81%) during the third quarter, acquiring approximately 235,475 shares. The estimated value of the purchase was $7.9 million. This addition brought Gilman Hill’s total reported U.S. equity holdings to 231 positions.
What Else to Know
This position represents 1.2% of Gilman Hill’s $638.7 million in reportable assets under management as of quarter-end.
Top reported holdings after the filing:
- NYSE:VZ: $11.9 million (1.9% of AUM)
- NYSE:O: $11.6 million (1.8% of AUM)
- NASDAQ:SBRA: $11.3 million (1.8% of AUM)
- NYSE:SWK: $11.2 million (1.7% of AUM)
- NYSE:HTGC: $11 million (1.7% of AUM)
As of Wednesday afternoon, Millrose Properties shares were priced at $31.91, up 45% since the company started trading independently in February and well outperforming the S&P's nearly 9.5% gain over the same period.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $5.3 billion |
| Revenue (TTM) | $231.7 million |
| Net Income (TTM) | $48.1 million |
| Dividend Yield | 5.7% |
Company Snapshot
- Millrose Properties operates the Homesite Option Purchase Platform (HOPP'R), providing residential land banking for homebuilders.
- The company generates income by offering investors access to residential real estate-backed, income-generating opportunities, historically available only to institutional participants.
- Primary customers include homebuilders seeking capital-efficient land acquisition strategies and investors seeking exposure to residential real estate income streams.
Millrose Properties delivers a unique platform for residential land banking, enabling homebuilders to secure land positions with reduced capital outlay. The company's model creates an income-generating investment vehicle backed by residential real estate, opening access to a market segment previously dominated by institutions. By focusing on capital efficiency and land control, Millrose Properties positions itself within the residential REIT sector.
Foolish Take
Gilman Hill’s new $7.9 million position in Millrose Properties (NYSE: MRP) adds a unique income-generating real estate play to its dividend-focused portfolio. Known for favoring stocks that blend steady income, capital appreciation, and risk control, the fund’s move aligns with its strategy of balancing high-yield assets like Realty Income (O) and Hercules Capital (HTGC) with emerging income vehicles.
Millrose has outperformed the broader market this year as investors have gravitated toward its Homesite Option Purchase Platform (HOPP’R) model, which helps homebuilders secure land without tying up significant capital. The company spun off from Lennar Corporation in February, and its stock has surged about 45% since—handily outpacing the S&P’s 9.5% gain in the same period. Earlier this month, Millrose said it expects to report revenues of about $179.3 million for the third quarter and net income of $105.1 million
For long-term investors, Millrose offers a differentiated way to tap into housing demand through a capital-efficient, income-driven structure. The addition to Gilman Hill’s portfolio underscores confidence that the company’s scalable model and predictable income streams fit well with the fund’s philosophy, which favors companies with significant cash flow, dividend income, and attractive valuations relative to the market.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
13F Reportable Assets: Securities that investment managers must disclose quarterly to the SEC if they exceed $100 million in assets.
Dividend Yield: Annual dividends paid by a company, expressed as a percentage of its current share price.
Residential Land Banking: The practice of acquiring and holding land for future residential development or sale to homebuilders.
Capital-Efficient: Using less capital to achieve desired investment or business outcomes, maximizing returns per dollar invested.
REIT (Real Estate Investment Trust): A company that owns, operates, or finances income-producing real estate and distributes most income to shareholders.
Alpha: A measure of an investment’s performance compared to a benchmark, indicating value added or subtracted by active management.
Institutional Participants: Large organizations, such as pension funds or insurance companies, that invest substantial sums in financial markets.
Income-Generating Opportunities: Investments designed to provide regular cash payments, such as dividends or interest, to investors.
Position: The amount of a particular security or asset held in a portfolio.
Stake: The ownership interest or share an investor holds in a company or asset.
TTM: The 12-month period ending with the most recent quarterly report.
