Why One Fund’s $6.6 Million Millrose Buy Looks Like a Bet on Homebuilders Staying Asset-Light
Key Points
Waterfall Asset Management bought 219,984 shares of MRP in the first quarter; the transaction value was estimated at $6.62 million based on average first-quarter pricing.
Meanwhile, the quarter-end position value rose by $5.96 million, reflecting both share additions and price movement.
The transaction equaled 3.7% of 13F reportable assets under management (AUM).
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Waterfall Asset Management increased its stake in Millrose Properties (NYSE:MRP), adding 219,984 shares in the first quarter, an estimated $6.62 million trade based on quarterly average pricing, according to a May 8, 2026, SEC filing.
What happened
According to a May 8, 2026, SEC filing, Waterfall Asset Management bought 219,984 additional shares of Millrose Properties during the first quarter. The estimated transaction value was $6.62 million based on the average closing price from January through March 2026. The position’s quarter-end value increased by $5.96 million, a figure that includes both the share purchases and stock price changes during the period.
What else to know
- This buy brought the Millrose Properties stake to 5.09% of Waterfall Asset Management’s 13F reportable AUM as of March 31, 2026.
- Top five fund holdings post-filing:
- NYSE:CPT: $12.86 million (11.2% of AUM)
- NYSE:AVB: $12.28 million (10.7% of AUM)
- NYSE:APLE: $10.77 million (9.4% of AUM)
- NYSE:RITM: $9.73 million (8.5% of AUM)
- NYSE:BRSP: $8.25 million (7.2% of AUM)
- As of May 7, 2026, Millrose Properties shares were priced at $27, up 4.4% over the past year and vastly underperforming the S&P 500’s roughly 30% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $600.5 million |
| Net Income (TTM) | $379.9 million |
| Dividend Yield | 10.74% |
| Price (as of market close 2026-05-07) | $26.90 |
Company Snapshot
- Millrose Properties operates a Homesite Option Purchase Platform (HOPP'R), providing residential land banking solutions and income-generating real estate investment opportunities.
- The company generates revenue by helping homebuilders achieve capital-efficient control of land positions as part of its income-generating platform.
- Primary customers include institutional investors and homebuilders seeking scalable, capital-light access to residential land positions.
Millrose Properties, Inc. delivers a differentiated platform for residential land banking, enabling homebuilders to expand controlled land positions with minimal upfront capital. The company's model creates stable, recurring income streams backed by residential real estate, historically accessible only to institutional investors. With a focus on capital efficiency and innovative land acquisition, Millrose positions itself as a strategic partner for both builders and investors seeking exposure to residential real estate markets.
What this transaction means for investors
This buy ultimately looks like a fairly direct bet that homebuilders will keep outsourcing land risk instead of loading more inventory onto their own balance sheets. That matters because Millrose is positioned right in the middle of that shift, giving builders access to homesites while preserving capital in an environment where margins remain under pressure.
The company’s latest quarter showed that demand is still moving in the right direction. Millrose expanded its builder network to 17 counterparties, including a new top-10 national homebuilder, while redeploying nearly $989 million into land acquisitions and development funding during the quarter.
And financially, the business is scaling quickly. First-quarter revenue more than doubled year over year to $194.9 million, while net income reached $122.9 million, or $0.74 per share.
For long-term investors, the bigger question is whether Millrose can keep expanding beyond Lennar while maintaining yields above 9%. Waterfall’s buy seems to suggest it’s bullish.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends AvalonBay Communities. The Motley Fool has a disclosure policy.
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