US: Single-Family REITs merge in $1.5 billion deal

American Homes 4 Rent and American Residential Properties, said on Dec. 3 that the single-family rental REITs had come to an agreement on a merger valued at roughly $1.5 billion.

Under the terms of the deal, American Homes 4 Rent will issue 38 million common shares to American Residential stockholders and assume or repay $800 million of American Residential’s debt. Each share of American Residential common stock and each limited partnership unit in its operating partnership will be exchanged for 1.135 common shares or limited partnership units of American Homes 4 Rent.

In a release accompanying the Dec. 3 announcement, Schmitz and American Homes 4 Rent CEO David Singelyn highlighted the benefits of combining forces.

“This merger provides American Residential Properties stockholders with a premium for their shares and the opportunity to benefit from participation in the upside potential of an efficient, larger platform that is well positioned in high growth markets and that will benefit from operating synergies,” Schmitz said.

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