Seeking Alpha

A gorilla pulls back: Blackstone to further wind down home purchases

  • At the peak last summer, Blackstone's (BX) Invitation Homes unit was buying about $125M of homes per week, but - with good deals harder to find - has slowed the pace to $30M-$40M, and global real estate chief Jonathan Gray suggests it could drop further. “It’s not going to get larger," he says. "There’s less and less distressed housing ... We have slowed down [buying] significantly in a number of markets as a result of prices going up."
  • Gray expects real estate will do just fine without Blackstone's giant-sized purchases. "We are an increasingly smaller and smaller part of the story now that the recovery has plenty of momentum on its own."
  • The pure-play single-family rental stocks' performance continues to disappoint, with the two public the longest - Silver Bay (SBY +0.3%), and American Residential Properties (ARPI -0.9%) - both near their lows since issuance. Others: American Homes 4 Rent (AMH -0.6%), Starwood Waypoint (SWAY -1.8%).
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