AMH to offer rental securitization


American Homes 4 Rent (AMH) will join Blackstone in offering bonds backed by rental payment streams from its single-family property portfolio. The company board has approved the deal which is expected to more forward within the next 90 days.

Blackstone got the ball rolling this month, successfully raising $479M backed by rent checks from 3,207 properties.

Publicly-traded single-family rental businesses have struggled since coming public, but these new securities offer the companies a lower cost of capital. Gamechanger? Sterne Agee - mostly negative on everything housing-finance-related - thinks so.

Other names of interest: SBY, ARPI.

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Comments (3)
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    This won't end well at all.
    11 Nov 2013, 10:21 AM Reply Like
  • bull_market_somewhere
    , contributor
    Comments (113) | Send Message
     
    all this means for me is my rent is probably going down.
    11 Nov 2013, 10:44 AM Reply Like
  • The_Hammer
    , contributor
    Comments (5093) | Send Message
     
    More underperforming garbage bundled together to dump off on investors. portfolio of single family rentals not easy to manage
    11 Nov 2013, 10:57 AM Reply Like
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