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Investments

American Homes 4 Rent jumps on REO-to-rental wagon

Enters rental-backed bond market

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The industry continues to capitalize on the REO-to-rental securitization market, as American Homes 4 Rent becomes the latest company to securitize a portion of its portfolio of single-family properties.

The transaction received approval by the company’s Board of Trustees and intends to go public with it within the next 90 days.

Currently, the company did not comment on the anticipated terms of the financings and expects the transaction to be exempt from registration under the Securities Act of 1993.

“We are very excited to finalize the details to take advantage of this new capital opportunity,” said David Singelyn, CEO of American Homes 4 Rent. 

“We look forward to leveraging our superior proprietary business model to reduce our cost of capital over the long term.”

The transactions comes to light during a period when more companies are shifting towards the REO-to-Rental market, causing much discussion about the scope, interest and potential size of the market.  According to coverage in Bloomberg, the deal is expected to go to marekt in the next 90 days.

As HousingWire previously reported, Blackstone (BX) subsidiary Invitation Homes’ was the first to dip its toes into the market but leaving an ocean left to explore, with KBW analysts forecasting a nearly trillion-dollar market.  

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