Single-Family Sees Another REIT Merger
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An AMH property in Mooresville, NC; the company is the largest public REIT in the single-family space.
AGOURA HILLS, CA and SCOTTSDALE, AZ—The single-family rental sector will now see its second major consolidation, as American Homes 4 Rent and American Residential Properties Inc. have agreed to merge. The tax-free combination is valued at $1.5 billion.
As part of the merger agreement, Agoura Hills, CA-based AMH will issue approximately 38 million common shares and assume or repay a total of approximately $0.8 billion of ARPI debt. Shareholders in Scottsdale, AZ-based ARPI will receive 1.135 common shares or limited partnership units for each share of ARPI they own.
The announcement comes three days after Jonathan Litt, founder and CIO of Land and Buildings, disclosed a 7.4% stake in ARPI and made public a letter to the REIT’s CEO, Stephen Schmitz, calling for measures to boost shareholder value by year’s end. It comes less than three months after news of the SFR sector’s first major union, the $1.5-billion merger of Starwood Waypoint Residential Trust and Colony American Homes…
