American Homes 4 Rent priced an unwritten public offering of 20 million Class A common shares, with 10 million offered directly by the company and 10 million offered by forward purchasers including Bank of America, JPMorgan Chase Bank, or their respective affiliates, according to a press release on Thursday (Jan. 20).
BofA Securities, J.P. Morgan, Citigroup and Morgan Stanley are acting as joint book-running managers for the offering, and Wells Fargo Securities, Raymond James, BMO Capital Markets, Jefferies and Mizuho Securities are acting as book-running managers. BTIG, RBC Capital Markets, Regions Securities LLC, Ramirez & Co., Inc. and Scotiabank are acting as co-managers.
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Proceeds from the forward sale agreement is anticipated to settle by Jan. 20, 2023, the company said in its filing with the Securities and Exchange Commission (SEC).
Underwriters have a 30-day option to buy a maximum of 3 million Class A common shares. The offering is anticipated to close on Monday (Jan. 24), according to the release.
Launched in 2012, American Homes 4 Rent is an internally managed Maryland real estate investment trust (REIT) that is focused on acquiring, renovating, leasing, and operating single-family homes as rental properties. The firm is releasing its next earnings report on Feb. 2. Its previous report showed earnings per share (EPS) of $0.35.
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“We intend to become a leader in the single-family home rental industry by aggregating a geographically diversified portfolio of high-quality single-family homes and developing American Homes 4 Rent into a nationally recognized brand that is well-known for quality, value and tenant satisfaction and is well respected in our communities,” the company said in the SEC filing.
“Our objective is to generate attractive, risk-adjusted returns for our shareholders through dividends and capital appreciation,” per the filing.
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As of Sept. 30, 2021, American Homes 4 Rent had holdings of 56,077 single-family properties in selected submarkets across 22 states. Upon acquisition of Alaska Joint Ventures, holdings will increase by 4,778 single-family properties.
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