Millrose Properties stock outperforms as Citizens maintains $40 target

Investing.com - Millrose Properties (NYSE:MRP), currently trading at $31.51 with a market capitalization of $5.23 billion, received a reiterated Market Outperform rating and $40.00 price target from Citizens on Wednesday, following the company’s earnings preannouncement that exceeded analyst expectations. The stock has demonstrated strong momentum, delivering a 52.72% return year-to-date. InvestingPro data shows the company currently trades at a premium valuation with a P/E ratio of 119.67x.

The real estate company preannounced its third-quarter 2025 earnings last Thursday, reporting adjusted funds from operations (AFFO) of $0.74 per share, above Citizens’ previous estimate of $0.71 per share. The outperformance was driven by approximately $850 million in capital deployment, significantly higher than anticipated. InvestingPro analysis reveals the company maintains a notable dividend yield of 9.27%, making it particularly attractive to income-focused investors.

Citizens noted that one-time items totaling $0.11 per share, mostly related to debt extinguishment costs, were included in the results but are not considered relevant to the company’s ongoing operations.

Based on the preannouncement, Citizens increased its AFFO per share estimates for Millrose Properties to $2.58 for 2025, $3.11 for 2026, and $3.22 for 2027. These upward revisions also led to higher dividend expectations, as the company has indicated a 100% payout policy.

The $40 price target represents approximately 13 times the firm’s 2026 AFFO estimate, with Citizens expressing confidence in Millrose’s business model of providing capital to homebuilders transitioning to land-light strategies.

In other recent news, Millrose Properties Inc. reported its second-quarter earnings for 2025, revealing a net income of $112.8 million, which translates to earnings per share of $0.68. Additionally, the company has increased its year-end quarterly Adjusted Funds from Operations per share guidance to between $0.70 and $0.73, indicating confidence in its growth strategy. This development is a significant highlight for investors, as earnings and revenue figures are crucial in evaluating the company’s financial health. While there is no specific mention of mergers or acquisitions, these earnings results stand out as a key focus. There were no analyst upgrades or downgrades reported in the recent updates. The company’s financial performance reflects its strategic growth initiatives, and these updates are relevant to current and potential investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.