Monday, 03 April 2017 08:15 AM
Upcoming AWS Coverage on American Campus Communities
LONDON, UK / ACCESSWIRE / April 3, 2017 / Active Wall St. blog coverage looks at the headline from Altisource Residential Corp. (NYSE: RESI) as the Company announced on March 31, 2017, that it had signed a Purchase and Sale agreement to acquire 757 Single Family Rental Homes from entities sponsored by Amherst Holdings LLC. The acquisition will help Altisource increase its portfolio of single family rental properties in strategic target markets. Register with us now for your free membership and blog access at:
http://www.activewallst.com/register/
One of Altisource Residential's competitors within the REIT - Residential space, American Campus Communities Inc. (NYSE: ACC), is expected to report its fiscal quarter ending March 2017 earnings on April 24, 2017 after market close. AWS will be initiating a research report on American Campus Communities in the coming days.
Today, AWS is promoting its blog coverage on RESI; touching on ACC. Get all of our free blog coverage and more by clicking on the link below:
http://www.activewallst.com/register/
Altisource is in the business of acquiring and owning of single-family rental assets across the US and is managed by Altisource Asset Management Corporation (AAMC).
Commenting on the deal, George Ellison CEO of Altisource said:
"RESI continues to execute on its stated objectives. This second large acquisition from Amherst is further evidence of our ongoing commitment to strong growth and our ability to identify and acquire the right rental properties to capitalize on attractive single-family rental economics."
Drew Flahive, President of Amherst Single Family Residential added:
"Amherst's vertically integrated business model provides a turnkey investment opportunity, which we believe will facilitate the growth of institutional investment in single family rental assets."
The deal
The deal was signed between Amherst Holdings, LLC and Altisource Residential, L.P., an operating partnership controlled by Altisource Residential Corporation. Altisource closed the agreements to acquire 100% equity interest in these 757 rental properties on March 30, 2017. The transaction is valued approximately $106.5 million. Altisource has managed to get seller financing of up to 75% of the purchase price. The seller financing consists of loan with tenure of up to five years at a floating interest rate of one-month LIBOR plus a fixed spread of 2.75%. All future acquisition made by Altisource from Amherst Holdings will be covered by seller financing on the same terms.
The current deal is a part of letter of intent signed between Amherst Holdings and Altisource to acquire over 3,500 Family Rental Homes from entities sponsored by Altisource in FY17. The acquisition of 757 rental properties is the first lot of the said agreement. Altisource is expected to complete the purchase agreement for the remaining 2,750 rental properties in FY17.
Altisource has retained the services of Main Street Renewal, LLC, to manage these rental property acquisitions. Incidentally, Main Street Renewal is the property manager of these rental properties and is a subsidiary of Amherst Holdings. Altisource has also retained the services of Hunton & Williams LLP for legal counsel for these acquisitions. The financial advisor for Amherst Holdings is Credit Suisse Securities (USA) LLC whereas its legal counsels are Skadden, Arps, Slate, Meagher & Flom LLP and Mayer Brown LLP.
About Amherst Holdings and its Single Family Residential wing
Amherst Holdings and its affiliates offer a wide range of financial services related to the US real estate, mortgage and securitized product markets to institutional investors. It has a team of approximately 670 professionals who handle the Company's single family residential, asset management, investment banking, and technology verticals. Amherst Holdings' Single Family Residential wing was created in 2012 and invests in single family rental homes. The Single Family Residential wing has managed to raise more than $3.5 billion of debt and equity capital to support its ventures.
Single Family Residential wing offers a wide range of services to facilitate the ownership of single family rental properties. The Single Family Residential wing has already sold over 7,500 professionally-managed rental properties to institutional investors and operators since the start of 2016.
Prior History
This is not the first time that Altisource has made a deal with Amherst Holdings. In October 2016, Altisource Residential, L.P., an operating partnership controlled by Altisource Residential Corporation, closed a purchase agreement with Amherst Holdings for a portfolio of 4,262 single family rental properties. The transaction valued at $652 million was also supported by seller financing from Amherst Holdings. This transaction helped Altisource to expand its presence in strategic and target markets like Florida, Texas, Georgia, Tennessee, North Carolina, and South Carolina.
Stock Performance
On Friday, March 31, 2017, the stock closed the trading session at $15.25, slightly falling 0.07% from its previous closing price of $15.26. A total volume of 693.74 thousand shares have exchanged hands, which was higher than the 3-month average volume of 631.82 thousand shares. Altisource Residential's stock price advanced 37.53% in the last three months, 47.89% in the past six months, and 34.99% in the previous twelve months. The stock currently has a market cap of $815.11 million and has a dividend yield of 3.93%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street