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.