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Wednesday, Dec 6, 2023

American Homes Sets $1.25 Billion IPO

American Homes 4 Rent is looking to raise up to $1.25 billion with its initial public offering, according to regulatory filings – the potentially largest debut among a growing number of home-rental firms. Led by B. Wayne Hughes, the billionaire founder of Public Storage Inc., the company announced the planned offering in March. It operates as a real estate investment trust, and owns 14,210 single-family homes in 20 states, with another 1,425 in escrow. American Homes has been based in Malibu, but is moving into 42,267 square feet of space in Agoura Hills this month, part of an expansion of its operations as it moves toward its IPO. The company is among a growing list of institutional landlords of single-family residential homes, and the latest in a string of public offerings. Minnetonka, Minnesota firm Silver Bay Realty Trust Corp. raised $245 million in December and Scottsdale, Arizona firm American Residential Properties Inc. raised $288 million in early May. Another company, Colony American Homes Inc., backed by Los Angeles billionaire Thomas Barrack Jr.’s Colony Capital, was scheduled to price its offering Wednesday, but has postponed its pricing citing market conditions, according to The Wall Street Journal. Silver Bay’s shares have dropped 3.7 percent since its IPO, and American Residential stocks have plunged 8.6 percent, leading to some analyst concern over the model. American Homes did not disclose the number of shares or the offering price in Tuesday’s filing, but indicated that it plans to list on the New York Stock Exchange with the ticker AMH. Goldman Sachs, Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. are managing the offering. As part of the filing, the company reported a loss of $10.2 million in 2012. The company has $1.7 billion in assets as of March 31.

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