Infographic: Funding for Build-for-Rent Exploding
Originally published by: John Burns Real Estate Consulting — April 22, 2021
by Danielle Nguyen Manager, Research
The following article was produced and published by the source linked to above, who is solely responsible for its content. SBC Magazine is publishing this story to raise awareness of information publicly available online and does not verify the accuracy of the author’s claims. As a consequence, SBC cannot vouch for the validity of any facts, claims or opinions made in the article.
Investors continue to ink deals in the single-family rental (SFR) and build-for-rent (BFR) space, despite a global pandemic. With already strong fundamentals (magnified by COVID-19), SFR and BFR show no signs of slowing. Investors have thrown billions of dollars of capital into the sector in just the last year.
With occupancy rates at an all-time high and investors increasingly expanding their portfolio to include this asset class, we want to highlight the recent investor and capital transactions* in this sector:
We also comb through the public single-family rental REIT earnings calls / press releases, and capital interest has not waned during COVID-19. In fact, the SFR REITs have said the following:
Tricon Residential (TCN)
- May 2020: “Single-family (rental) comes out as a winner, and demand for this asset class is absolutely going to explode. We’ll have to duck, there’ll be so much money coming at us. We’re getting inbounds all the time. Even in the last 2 or 3 weeks, people who want to just give us money.”
- March 2021: “We expect to raise $1.2 billion of third-party equity capital across all our rental businesses in '21, which would make this the most prolific year of fundraising in Tricon's 33-year history.”
American Homes 4 Rent (AMH)
- February 2021: “We expect to invest between $1.2 billion and $1.6 billion of total capital into our combined growth programs this year, adding approximately 3,500 homes to our wholly owned and joint-venture portfolios, including 1,900 to 2,200 homes that we expect to deliver through our AMH Development program.”
Invitation Homes (INVH)
- February 2021: “You just keep hearing about more capital wanting single-family rental exposure, which we, quite frankly, view as a positive.”
We recently added the new Burns Summary of Public Single-Family Rental REIT Results to our single-family rental research suite. The report covers key performance statistics and market insight from the three publicly traded SFR REITs and includes forecasts based off the REITs' geographic footprints. For more information, please contact us.
We are also monitoring investor activity as closely as we can to help our clients invest with as much clarity as possible. Check out our recently published white paper Investor Mania 2.0, which analyzes overall housing investor activity* and the role technology has played in the current housing recovery.
Contact Danielle Nguyen, Rick Palacios Jr., or Don Walker for more insight on our research and consulting services in the SFR and BFR space.
*The list is not 100% comprehensive, given the evolving nature of the single-family rental and build-for-rent sector. We tried our best to include transactions that were made public between 2020 and the present.