Homes 4 Rent, American Residential Properties in $1.5B Merger

Single-family rental firm American Homes 4 Rent will merge with rival American Residential Properties in a deal valued at $1.5 billion, the firms announced.

The firm said they expect the merger to close in the first half of 2016.

American Homes 4 Rent, the largest publicly traded single-family rental company, owned 38,377 single-family properties in 22 states as of Sept. 30 and American Residential Properties owned 8,938 single-family properties in 12 states. The combined company’s market capitalization will equal $5.5 billion.

David Singelyn, CEO of American Homes 4 Rent, said ARP’s rental house portfolio fits well with his firm’s existing markets, “offering significant opportunities to capture further operating efficiencies on the combined platform.”

The real estate investment trust American Homes 4 Rent will issue 38 million common shares and assume or repay $0.8 billion of American Residential Properties’ debt in the deal.