On February 17, 2026, Brave Warrior Advisors disclosed a buy of 3,224,632 shares of Millrose Properties (MRP 3.35%), an estimated $101.14 million trade based on fiscal fourth quarter 2025 average pricing.
What happened
According to an SEC filing dated February 17, 2026, Brave Warrior Advisors increased its position in Millrose Properties (MRP 3.35%) by 3,224,632 shares during the fiscal fourth quarter ended December 31, 2025. The estimated value of the purchase is $101.14 million, calculated using the average closing price for the quarter. The quarter-end value of the MRP position rose by $76.22 million, reflecting share additions and market price changes.
What else to know
- The fund’s MRP stake now accounts for 6.0% of its reportable U.S. equity AUM following the buy.
- Top holdings after this filing:
- NYSE: OMF: $522.79 million (12.2% of AUM)
- NYSE: SNX: $475.21 million (11.1% of AUM)
- NYSE: ELV: $438.82 million (10.3% of AUM)
- NASDAQ: SLM: $347.23 million (8.1% of AUM)
- NYSE: AN: $320.61 million (7.5% of AUM)
- As of Wednesday, MRP shares were priced at $30.70, up 38% over the past year and well outperforming the S&P 500’s roughly 16% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $5 billion |
| Revenue (TTM) | $411 million |
| Net income (TTM) | $191.8 million |
| Dividend yield | 8% |
Company snapshot
- Millrose Properties operates a Homesite Option Purchase Platform (HOPP'R), generating revenue by providing homebuilders with access to controlled residential land positions.
- The company earns income through option fees and related real estate services, offering investors exposure to residential land banking strategies typically reserved for institutional participants.
- Primary customers are homebuilders seeking capital-efficient expansion of their land portfolios and investors seeking income-generating, real estate-backed opportunities.
Millrose Properties is a publicly traded real estate investment trust specializing in residential land banking through its Homesite Option Purchase Platform. The company enables homebuilders to efficiently secure and control land positions, while providing investors with access to income streams backed by residential real estate assets. With a focus on capital efficiency and unique market access, Millrose offers a differentiated investment proposition within the real estate sector.
What this transaction means for investors
With this move, Brave Warrior just made a concentrated bet on a capital-efficient housing play that doesn’t own a single finished home. Millrose has built a land banking machine that generated $2.44 in net income per share and $2.58 in AFFO in 2025, while distributing $0.75 per quarter and targeting roughly 10% AFFO per share growth in 2026.
The platform now sits on roughly $8.5 billion of invested capital earning a 9.2% weighted average yield, with newer non-Lennar investments closer to 11%. That combination of recurring option fees, disciplined leverage at 26% debt to capital, and zero option terminations in 2025 creates a steadier earnings base than many traditional housing plays.
Within a portfolio already anchored by large positions in consumer finance, distribution, health insurance, and auto retail, adding a 6% weight here tilts further toward asset-backed cash flow businesses with visible income streams. If management can deploy up to $2 billion in new capital this year, as it’s targeting, without stretching the balance sheet, this could look like a really smart move even after outsized gains this past year.
