Weekly Real Estate News
Millrose Properties has disclosed that it acquired 1,233 completed single-family rental homes from Lennar across 18 states at an aggregate cost basis of approximately $333 million, providing new company-confirmed details about a business line at the center of shareholder litigation.
The disclosure came in Millrose’s third-quarter earnings announcement on October 27. The company said it funded the rental-home portfolio with approximately $120 million of balance-sheet capital and $213 million of limited-recourse secured financing. Millrose described the acquisition as a standalone rental investment and a pilot that could inform future housing-affordability initiatives.
New Figures in a Disputed Business Strategy
Millrose was established primarily to provide land and homesite financing to builders. Its purchase of completed Lennar homes has drawn scrutiny because investors have alleged they were misled about the company’s strategy. WRE News reported the shareholder lawsuit earlier this month. Those allegations remain allegations; the new earnings release does not establish wrongdoing or resolve the case.
Millrose reported third-quarter net income of approximately $130 million and adjusted funds from operations of about $133.5 million, or $0.80 per share. The company raised its projected year-end quarterly AFFO run rate to $0.82–$0.84 per share. Its board authorized a $250 million share-repurchase program on October 26, subject to market conditions and without a commitment to repurchase any specific number of shares.
The company also reported providing approximately $1.1 billion in capital support after quarter-end in connection with Dream Finders Homes’ acquisition of Beazer Homes. Millrose said approximately 42% of its asset base is now invested outside the Lennar master program, reflecting its effort to expand beyond its original major counterparty.
The newly disclosed rental-home figures are significant because they establish the scale and financing of Millrose’s completed-home investment directly from the company, rather than from estimates or claims in the litigation. Questions about the economic performance of those homes and the shareholder allegations require separate evaluation.
Source: Millrose Properties, third-quarter 2026 results, October 27.
