Single Family Rental REITs
What Are Single-Family Rental REITs?
Single-Family Rental (SFR) Real Estate Investment Trusts (REITs) own and lease detached homes, catering to renters seeking space, privacy, and suburban living. These REITs generate income through long-term leases, benefiting from strong demand driven by rising home prices and lifestyle shifts.
Why Invest?
SFR REITs offer stable cash flow, capital appreciation, and exposure to the growing rental housing market. With millennials and remote workers fueling demand for single-family rentals, these REITs provide a hedge against inflation while benefiting from long-term demographic trends.
Challenges & Outlook
While SFR REITs thrive on high demand, they face challenges such as rising property prices, interest rates, and maintenance costs. However, with affordability issues limiting homeownership and rental demand increasing, SFR REITs remain a promising long-term investment in residential real estate.
Ticker Symbol | Company Name | Property Sector | Market Cap ($B) | Dividend Yield | Payout Frequency | Price-to-FFO | Debt Ratio | Short Interest | |
---|---|---|---|---|---|---|---|---|---|
INVH | Invitation Homes | SF Rental | 20.17 | 3.16% | Quarter | 18.6 | 30% | 1.9% | |
AMH | American Homes | SF Rental | 12.67 | 2.52% | Quarter | 21.4 | 28% | 2.5% | |
TCN | Tricon Residential | SF Rental | 2.18 | 2.91% | Quarter | 14.4 | 75% | 1.1% | |
BHM | Bluerock Homes | SF Rental | 0.06 | 0.00% | -- | -- | 31% | 1.3% | |
NXDT | NexPoint Diversified | SF Rental | 0.32 | 6.98% | Quarter | -- | 85% | 1.1% | |