Why One Fund’s $6.6 Million Millrose Buy Looks Like a Bet on Homebuilders Staying Asset-Light

2 hours ago 4

Jonathan Ponciano, The Motley Fool

Sun, May 10, 2026 astatine 12:20 PM CDT 4 min read

Waterfall Asset Management accrued its involvement successful Millrose Properties (NYSE:MRP), adding 219,984 shares successful the archetypal quarter, an estimated $6.62 cardinal commercialized based connected quarterly mean 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 further shares of Millrose Properties during the archetypal quarter. The estimated transaction worth was $6.62 cardinal based connected the mean closing terms from January done March 2026. The position’s quarter-end worth accrued by $5.96 million, a fig that includes some the stock purchases and banal terms changes during the period.

What other to cognize

This bargain brought the Millrose Properties involvement to 5.09% of Waterfall Asset Management’s 13F reportable AUM arsenic of March 31, 2026.
Top 5 money holdings post-filing:
- NYSE:CPT: $12.86 cardinal (11.2% of AUM)
- NYSE:AVB: $12.28 cardinal (10.7% of AUM)
- NYSE:APLE: $10.77 cardinal (9.4% of AUM)
- NYSE:RITM: $9.73 cardinal (8.5% of AUM)
- NYSE:BRSP: $8.25 cardinal (7.2% of AUM)
As of May 7, 2026, Millrose Properties shares were priced astatine $27, up 4.4% implicit the past twelvemonth and vastly underperforming the S&P 500’s astir 30% summation successful the aforesaid period.

Company Overview

Metric

Value

Revenue (TTM)	$600.5 million
Net Income (TTM)	$379.9 million
Dividend Yield	10.74%
Price (as of marketplace adjacent 2026-05-07)	$26.90

Company Snapshot

Millrose Properties operates a Homesite Option Purchase Platform (HOPP'R), providing residential onshore banking solutions and income-generating existent property concern opportunities.
The institution generates gross by helping homebuilders execute capital-efficient power of onshore positions arsenic portion of its income-generating platform.
Primary customers see organization investors and homebuilders seeking scalable, capital-light entree to residential onshore positions.

Millrose Properties, Inc. delivers a differentiated level for residential onshore banking, enabling homebuilders to grow controlled onshore positions with minimal upfront capital. The company's exemplary creates stable, recurring income streams backed by residential existent estate, historically accessible lone to organization investors. With a absorption connected superior ratio and innovative onshore acquisition, Millrose positions itself arsenic a strategical spouse for some builders and investors seeking vulnerability to residential existent property markets.

What this transaction means for investors

This bargain yet looks similar a reasonably nonstop stake that homebuilders volition support outsourcing onshore hazard alternatively of loading much inventory onto their ain equilibrium sheets. That matters due to the fact that Millrose is positioned close successful the mediate of that shift, giving builders entree to homesites portion preserving superior successful an situation wherever margins stay nether pressure.

The company’s latest 4th showed that request is inactive moving successful the close direction. Millrose expanded its builder web to 17 counterparties, including a caller top-10 nationalist homebuilder, portion redeploying astir $989 cardinal into onshore acquisitions and improvement backing during the quarter.

And financially, the concern is scaling quickly. First-quarter gross much than doubled twelvemonth implicit twelvemonth to $194.9 million, portion nett income reached $122.9 million, oregon $0.74 per share.

For semipermanent investors, the bigger question is whether Millrose tin support expanding beyond Lennar portion maintaining yields supra 9%. Waterfall’s bargain seems to suggest it’s bullish.

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