Salient to Investors:
Investors are cooling on the fledgling US homes-for-rent industry. IPO American Homes 4 Rent was little changed in its first day of trading after raising almost 44 percent less than estimated in its initial prospectus in June and at the low-end of the offering range. The two other REITs that have gone public are trading below their offering price.
Dave Bragg at Green Street Advisors said it is uncertain whether single-family owners can make money over the long-term on par with other types of landlords.
Shares of other public single-family rental REITs have fallen as the companies have failed to show a profit, in part because they are acquiring houses faster than they can fill them with tenants.
Read the full article at http://www.bloomberg.com/news/2013-07-31/american-homes-4-rent-raises-705-9-million-in-u-s-ipo.html
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