Single-Family REITs: A Small Club That's Growing

CHARLOTTESVILLE, VA—Still constituting a small base, the number of publicly traded single-family REITs nonetheless has tripled in the past 18 months. And the half dozen in existence today may soon have company. SNL Financial reported earlier this week that Colony American Homes and the Blackstone Group’s Invitation Homes are considering IPOs in the near future.

Publicly traded or no,  single-family REITs have looked to securitizations, in part to lower their cost of capital. Charlottesville, VA-based SNL says at least five securitizations have been completed in the single-family rental sector as of June 20, with Colony American most recently making its second such transaction last month. It was collateralized by a $558.5-million loan backed by 3,727 properties. Further, Altisource Residential Corp. recently amended its master repurchase agreement to facilitate a securitization transaction, SNL says.