American Residential Properties plans to raise $300 million in medium-term debt via a securitization of single family rental properties.
The REIT announced during its fourth quarter 2013 and full year 2013 earnings call last week that it had retained Deutsche Bank to serve as lead banker to assist in structuring and negotiating the securitization.
The funding will help “reduce our cost of capital and enable us to continue funding our acquisition strategy in 2014,” the REIT stated in a press release.
American Residential Properties is banking on more strong growth for its acquisition portfolio, which is currently comprised of 6,073 single-family homes located in 13 states for a total investment of $802 million. In the fourth quarter of 2013, the company invested $104 million to acquire 633 single-family homes.
“We had an outstanding year in 2013 and made tremendous progress in expanding our robust platform for long-term success in the single-family rental market,” said Stephen G. Schmitz, the company's chairman and chief executive, stated in the press release. “We expect 2014 to be another year of strong growth in the portfolio and increasing profitability as we continue to improve efficiencies.”
American Residential Properties is one of several real estate investment trust gearing up for its inaugural deal. In January, American Homes 4 Rent announced that it had struck a deal with Goldman Sachs to arrange a bond backed by single-family home rental payments.
AMH said during its fourth quarter and full year 2013 earnings call last week that its prrtfolio comprised 23,268 single-family properties as of Dec. 31, 2013. The REIT also said during the call that it “continues to aggressively pursue a securitization transaction, which it expects to be completed in the next 60 days.”