The previously announced merger of Invitation Homes and Starwood Waypoint Homes is now complete.
The deal, which was originally announced in August, creates the nation’s largest owner and operator of single-family rental homes.
Beginning Thursday, the combined company will operate under the name “Invitation Homes” and will continue trading on the New York Stock Exchange under the symbol previously used by Invitation Homes: INVH. Starwood Waypoint previously traded under the symbol “SFR.”
The completion of the merger marks the latest in a series of consolidations in the single-family rental industry that took place over the last few years.
Most notable during that time was when Starwood Waypoint Residential Trust merged with Colony American Homes two years ago to form Colony Starwood Homes to create a single-family rental giant.
Colony Starwood Homes changed its name earlier this year to Starwood Waypoint Homes, but now the company will be known as Invitation Homes.
Invitation Homes owns and operates nearly 50,000 rental homes in 13 major markets: Atlanta, Charlotte, Chicago, Jacksonville, Las Vegas, Minneapolis, Northern California, Orlando, Phoenix, Seattle, Southern California, South Florida, Tampa, while Starwood Waypoint Homes’ portfolio of rental homes is roughly 32,000.
That means the combined company will own and operate approximately 82,000 single-family rental homes, with an average of 4,800 homes per market.
Overall, the two companies have invested nearly $2 billion, or an average of approximately $22,000 per home, in renovations and maintenance, the companies said.
“The merger brings together the best practices, technology, and personnel from both firms to create the premier single-family rental company in the United States, with an unparalleled ability to deliver enhanced service offerings to residents more efficiently, continue investing in local communities, and generate value for stockholders,” the companies said in a release.
As the companies previously disclosed, Fred Tuomi, former chief executive officer of Starwood Waypoint Homes, is now chief executive officer of Invitation Homes; Ernie Freedman remains chief financial officer of Invitation Homes; Charles Young, former chief operating officer of Starwood Waypoint Homes, is now chief operating officer of Invitation Homes; and Dallas Tanner remains chief investment officer of Invitation Homes.
The combined company’s board he now has 11 directors, six current directors of Invitation Homes and five former trustees of Starwood Waypoint Homes.
Additionally, Invitation Homes will remain headquartered in Dallas, Texas, and will maintain a presence in Scottsdale, Arizona.
“Bringing together the best of both companies will help us continue to enhance customer service and expand housing choices for our residents,” Tuomi said.
“We will be able to more effectively and efficiently deliver exceptional living experiences near good jobs and good schools for families choosing to rent,” Tuomi continued. “Our combined team is excited about the future and the opportunity ahead to continue serving our residents and supporting local communities.”
The company also said that as a result of the merger, the company “will benefit from economies of scale and greater operating efficiency that will also enable even higher-quality customer service.”
Additionally, Invitation Homes expects annual run-rate cost synergies from the merger of between $45 million to $50 million.