CHARLOTTESVILLE, VA—Still constituting a small base, the numberof publicly traded single-family REITs nonethelesshas tripled in the past 18 months. And the half dozen in existencetoday may soon have company. SNL Financialreported earlier this week that Colony AmericanHomes and the Blackstone Group's InvitationHomes are considering IPOs in the near future.

Publicly traded or no, single-family REITs have looked tosecuritizations, in part to lower their cost of capital.Charlottesville, VA-based SNL says at least five securitizationshave been completed in the single-family rental sector as of June20, with Colony American most recently making its second suchtransaction last month. It was collateralized by a $558.5-millionloan backed by 3,727 properties. Further, AltisourceResidential Corp. recently amended its master repurchaseagreement to facilitate a securitization transaction, SNL says.

The research firm notes that analysts have highlighted theimportance of the securitization strategy as a capital costadvantage for single-family REITs. In a June 2 report aboutAmerican Homes 4 Rent, analysts from FBRCapital Markets & Co. noted that the company'ssecuritization will lower its capital cost, allowing it to purchaseproperties and increase funds from operations and dividends, inaddition to allowing it to begin its process of consolidation tocreate a barrier for other players.