REIT IPOs: One Postponed, Another On Time

REIT IPOs: One Postponed, Another On Time
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Colony American Homes Inc has delayed the date for pricing of its public offering. The decision was taken by keeping in view the market conditions, says a report by Matthew Jarzemsky from WSJ, citing a source who knows the matter.

REIT IPOs: One Postponed, Another On Time

Colony American Homes is based in Scottsdale, Arizona. The price set by the company for its IPO of 20 million shares was priced between $11.50 and $13 each.

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The company has delayed the pricing after the sell off in shares of real-estate investment trusts in the previous two weeks. The interest rates have increased, which has affected the performance of high dividend paying stock.

About Colony American Homes

The company Colony American Homes was established last year and is looking forward to buying houses in mid-and upscale neighborhoods where the crime is less, and the schools are in abundance. Colony America held partial stakes in 9,931 homes in nine states, as on April 30. The states where the property is bought include California and Georgia. Thomas Barrack who is a massively experienced real estate investor and also the founder of Colony Capital LLC is the chairman of the company Colony America.

Upcoming IPO

American Homes 4 Rent on Tuesday, filed the documents with the SEC to raise up to $1.25 billion in an initial public offering and will list on NYSE under the symbol AMH. This CA-based REIT acquires, renovates and leases residential homes in the US. The company was founded in 2011 and reported sales of $11.1 million for the quarter ended March 31, 2013.  The company earlier filed the confidentially on April 12, 2013.

The REIT and property owning companies are the ones that pay a large chunk of their income in the form of dividends to shareholders and has become a good alternative of bond for the investors over the past few years.

The new segment, which has been added to the REIT, is a single-family landlord. As of now it has got a lukewarm response from the investors. These companies are formed to buy a single-family house instead of huge buildings like apartment complexes or office towers.

REIT’s not performing well

American Residential Properties, which came out with an IPO in May, is another company that is not performing well and the stock of the company declined 8.6 percent.

The stock of Silver Bay Reality Trust Corp has also declined 3.7 percent since the IPO was launched in December.

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