🏘 🏦 The recent $3.5B acquisition of publicly traded SFR Tricon Residential by Blackstone highlights the growth and evolution of the SFR market from the early pioneers who were publicly listed including Silver Bay, American Residential, Starwood Waypoint / Colony American Homes, Front Yard Residential. Tricon Residential Blackstone ☀
⏯ Despite the headlines, institutional investors only own around 1% of the entire Single Family Home market ⏯
🌐 🏔 Facts. We recently came across an insightful research paper on Single Family REITs which found "we find no evidence that SFRs crowd out residential home-buyers or increase home prices, which is consistent with their low overall share of the housing stock but contrary to narratives in the popular press" Giacoletti, Marco and Heimer, Rawley and Li, Wenli and Yu, Edison G., Single Family REITs (November 2023) 🌎 🏔
👨 Tricon deal highlights:
✅ Announced: 1/19/2024
✅ Value: $3.5B equity transaction
✅ Premium: 30% 1-day premium, 42% volume 90-day weighted avg share price
✅ Expected close: Q2'2024
✅ ~38k US rental homes + apartments in Atlanta, Charlotte, Dallas, Tampa and Phoenix and Toronto
✅ ~2500 homes under development, support for 21,000 future development, $3.5B in pipeline to be completed
💯 SFR Thesis💯
🌟 Rental housing fundamentals remain strong.
Record-low inventory of for-sale homes has meant more American families will rent for longer. And in areas with high sales prices, renting is often less expensive. Those trends aren’t likely to dissipate soon, according to Mizuho Securities analyst Haendel St. Juste. 🌟
🔊 “There’s been an underproduction of housing over the last decade and inventory remains tight,” said St. Juste. “For a family looking to get into a good school district, they can often get in cheaper by renting.” 🔊
🏦 “We are excited that our capital will propel Tricon’s efforts to add much-needed housing supply across the US and in Toronto,” Nadeem Meghji, global co-head of Blackstone Real Estate. Blackstone 🏦
https://lnkd.in/e5t7K89H
#sfrevolution #housingthesis #pioneersandsettlers
Real Estate Partnership Leader | Business Development | Sales Coaching I GTM
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