Merger creates single-family rental giant
AGOURA HILLS, Calif. – March 3, 2016 – American Homes 4 Rent and American Residential Properties announced yesterday that they finalized a merger that could play a dominant role in the single-family rental space.
American Homes 4 Rent will now own more than 47,000 homes across 22 states, including homes in five Florida cities: Fort Myers, Jacksonville, Miami, Orlando and Tampa. They own at least 1,000 homes in 17 markets alone.
American Homes 4 Rent says it now has a total market capitalization of about $8 billion. The merger's total transaction value is $1.3 billion, with American Homes 4 Rent issuing about 38 million common shares and limited partnership units.
"We are delighted to announce the completion of our merger with American Residential Properties, further establishing American Homes 4 Rent as the largest publicly traded owner and operator of single-family rental homes," says David Singelyn, American Homes 4 Rent's chief executive officer. "American Residential Properties owned a high-quality portfolio of homes that fit strategically in our markets, offering significant opportunities to capture further operating efficiencies on the combined platform."
Singelyn says his company looks "forward to the rapid integration of the two platforms and to creating additional value for the shareholders of the combined company, while strengthening our position as a premier company in the single-family rental sector."
American Homes 4 Rent officials say that some of the homes acquired in the merger will be sold "as soon as practicable" if they do not meet their criteria.
Source: "American Homes 4 Rent, American Residential Properties Complete Merger," HousingWire (March 1, 2015)© Copyright 2016 INFORMATION, INC. Bethesda, MD (301) 215-4688