A Giant Landlord Has (E)Merged

Real Estate

Move Over Mom and Pop Landlords:

Two of the largest leading owners and operators of single-family rental homes in the U.S are merging, as announced today, 8/10/17. Invitation Homes and Starwood Waypoint Homes are becoming one. This agreement is 100% stock-for-stock and will operate under the name "Invitation Homes". This merger will create a giant landlord, the largest in the U.S., owning and managing approximately 82,000 single-family homes across 17 metro areas.  “This merger creates the leading single-family rental company in the United States, which will be uniquely positioned to deliver exceptional service to residents, while also improving operating efficiency. That is a win-win for both residents and stockholders,” said Fred Tuomi, Chief Executive Officer of Starwood Waypoint Homes. “We will have an irreplaceable portfolio of homes focused in select high-growth markets, offering unrivaled service and high-quality housing options for families choosing to rent. We have great admiration for Invitation Homes and its talented team, and look forward to embarking on an exciting new chapter together.”

Starwood Waypoint CEO, Fred Tuomi, will lead the company.
Bryce Blair, the CEO of the current Invitation Homes will be chairman.
Richard D. Bronson, Current Starwood Waypoint Homes Board Member
Michael D. Fascitelli, Current Starwood Waypoint Homes Board Member
Jonathan D. Gray, Current Invitation Homes Board Member
Robert G. Harper, Current Invitation Homes Board Member
Jeffrey E. Kelter, Current Starwood Waypoint Homes Board Member
John B. Rhea, Current Invitation Homes Board Member
Janice L. Sears, Current Invitation Homes Board Member
William J. Stein, Current Invitation Homes Board Member
Barry S. Sternlicht, Current Starwood Waypoint Homes Board Member, Chairman & Chief Executive Officer of Starwood Capital Group

Once the transaction is complete, Invitation Homes stockholders will own approximately 59% of the combined company's stock and Starwood Waypoint stockholders owning the remainder 41% according to CNBC.  The entity is expected to have a market capitalization of approximately $11 billion and the total enterprise value is said to be in the area of $20 billion. The company's shares are expected to continue trading on the NYSE under the ticker symbol for Invitation Homes (INVH). Starwood Waypoint Homes shareholders will received 1.614 Invitation Homes shares.

Invitation Homes, primarily owned by Blackstone Group, was a key player in an estimated $9.6 billion spent on buying up 50,000 homes during the foreclosure crisis and turning them into rentals.

What does this mean for the renter? Time will tell.

 

For more information:

https://www.forbes.com/sites/samanthasharf/2017/08/10/single-family-rental-leaders-invitation-homes-starwood-waypoint-homes-to-combine/#5834cec3467a

https://www.cnbc.com/2017/08/10/blackstones-invitation-homes-to-buy-starwood-waypoint.html

https://finance.yahoo.com/news/invitation-homes-starwood-waypoint-homes-110000886.html

http://www.businesswire.com/news/home/20170810005509/en/Invitation-Homes-Starwood-Waypoint-Homes-Announce-Merger