- John Bartling, president and CEO of Invitation Homes, which just held the largest REIT IPO since 2014.
DALLAS—Shares of Invitation Homes Inc. began regular trading Wednesday on the New York Stock Exchange under the INVH ticker after the Blackstone Group unit's initial public offering, which priced Tuesday evening. With 77 million shares sold at $20 each, the IPO represented the largest in the REIT sector since Paramount Group debuted with $2.29 billion in 2014, and the largest IPO, period, since First Data Corp. raised $2.8 billion in October 2015.
The Dallas-based single-family rental REIT has granted the underwriters a 30-day option to purchase up to an additional 11,550,000 shares at the IPO price, less underwriting discounts. That offering is expected to close this coming Monday.
Deutsche Bank Securities, J.P. Morgan, BofA Merrill Lynch, Goldman Sachs, Wells Fargo Securities, Credit Suisse, Morgan Stanley and RBC Capital Markets are serving as joint book-running managers for the offering. Blackstone Capital Markets, BTIG, Evercore ISI, FBR, JMP Securities, Keefe, Bruyette & Woods, Raymond James, Siebert Cisneros Shank & Co. LLC and Zelman Partners LLC are acting as co-managers.
“We have a great product, the industry is finally getting recognized for what it's doing and we are driving the right margins,” INVH president and CEO John Bartling told CNBC Wednesday. “Our core margins are about 62%, very competitive with multifamily. Top-line growth is competitive with multifamily and quite frankly, when you look at our fundamentals, it's a very attractive time for investors and that's why you see us come to the public market.” CNBC reported that attention to the INVH IPO also bumped up pricing as well as trading volume on two other SFR REITs, American Homes 4 Rent and Colony Starwood.
Since launching the Invitation Homes platform in 2012, Blackstone had spent about $10 billion to acquire and upgrade its 48,431 single-family properties, which it bought primarily as foreclosures, the Wall Street Journal reported in December. “A public listing would set the stage for Blackstone to start exiting the business,” the WSJ reported at that time, although post-IPO, Blackstone still controls 73% of INVH's stock and will not be selling any of its shares at this time.
The nation's largest SFR landlord, Blackstone also has extensive holdings in multifamily, and Jonathan Gray, global head of real estate at Blackstone, told CNBC last October that housing remained “a bright spot” in the domestic economy. “We own about 100,000 either multifamily homes or single-family homes for rent,” said Gray. “And across the board, across the country, we're seeing strength in that area.”
It was the strength of the SFR sector in particular that prompted Fannie Mae last month to guarantee up to $1 billion in debt from INVH, to be issued after the IPO. Fannie and Wells Fargo Bank committed to a 10-year, fixed-rate mortgage loan collateralized by some of INVH's portfolio; the loan will be funded by the issuance and sale of mortgage-backed certificates that carry Fannie's guarantee of timely payment.
“This transaction helps us gather data and test the market to ensure we are delivering the right solutions that meet the increasing demand for single-family rental housing across all demographics,” a Fannie spokesperson told the WSJ last month. The GSE's guarantee signals “a belief that homeownership will remain out of reach for many Americans,” according to the WSJ.
- John Bartling, president and CEO of Invitation Homes, which just held the largest REIT IPO since 2014.
DALLAS—Shares of Invitation Homes Inc. began regular trading Wednesday on the
The Dallas-based single-family rental REIT has granted the underwriters a 30-day option to purchase up to an additional 11,550,000 shares at the IPO price, less underwriting discounts. That offering is expected to close this coming Monday.
“We have a great product, the industry is finally getting recognized for what it's doing and we are driving the right margins,” INVH president and CEO John Bartling told CNBC Wednesday. “Our core margins are about 62%, very competitive with multifamily. Top-line growth is competitive with multifamily and quite frankly, when you look at our fundamentals, it's a very attractive time for investors and that's why you see us come to the public market.” CNBC reported that attention to the INVH IPO also bumped up pricing as well as trading volume on two other SFR REITs, American Homes 4 Rent and Colony Starwood.
Since launching the Invitation Homes platform in 2012, Blackstone had spent about $10 billion to acquire and upgrade its 48,431 single-family properties, which it bought primarily as foreclosures, the Wall Street Journal reported in December. “A public listing would set the stage for Blackstone to start exiting the business,” the WSJ reported at that time, although post-IPO, Blackstone still controls 73% of INVH's stock and will not be selling any of its shares at this time.
The nation's largest SFR landlord, Blackstone also has extensive holdings in multifamily, and Jonathan Gray, global head of real estate at Blackstone, told CNBC last October that housing remained “a bright spot” in the domestic economy. “We own about 100,000 either multifamily homes or single-family homes for rent,” said Gray. “And across the board, across the country, we're seeing strength in that area.”
It was the strength of the SFR sector in particular that prompted
“This transaction helps us gather data and test the market to ensure we are delivering the right solutions that meet the increasing demand for single-family rental housing across all demographics,” a Fannie spokesperson told the WSJ last month. The GSE's guarantee signals “a belief that homeownership will remain out of reach for many Americans,” according to the WSJ.
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