The stake sale will be executed through block deals on stock exchanges.
The exact quantum of the proposed stake sale, the third so far since the REIT’s listing in April 2019, has not been decided as yet and depends on the unit price of the REIT on the day of execution of the block deals.
On Friday, Embassy Office Parks REIT units closed at Rs 354.67 on the BSE.
Abu Dhabi Investment Authority (ADIA), the sovereign fund of Abu Dhabi, is believed to be participating in these block deals and picking up a stake worth $200 million in the REIT.
“The proceeds of this transaction are likely to be used to return money to participants in Blackstone’s close-ended fund that had invested in the REIT,” one of the persons mentioned above told ET.
Blackstone and ADIA could not be reached immediately for a comment. Reuters reported the story on Friday evening.
In September 2021 too, the global private equity major trimmed its stake in Embassy Office Parks REIT through block deals in the open market.
The institutional investor then raised $275 million by selling around 6% stake in the listed entity. The transactions reduced Blackstone’s stake in the REIT to 32%, from 38% previously.
Prior to the 2021 stake sale, Blackstone had $1.7 billion worth of exposure in Embassy Office Parks REIT.
Blackstone had then sold around 57 million shares of Embassy Office Parks REIT at Rs 355.2 per unit.
Institutional investors and funds, including BNP Paribas Arbitrage, American Funds Global Balanced Fund, Stichting Depositary APG Tactical Real Estate Pool, and Integrated Core Strategies (Asia), were among the key entities that had bought these REIT units in block trades.
Co-sponsored by the Blackstone Group and Embassy Group, Embassy Office Parks REIT is India’s first REIT that listed in April 2019.
This will be the third time Blackstone will be trimming its exposure to the REIT through open market block deals.
In June 2020, it had raised over $300 million by selling an 8.7% stake in the listed entity.
In December 2020, Blackstone and Embassy sold Embassy TechVillage, an integrated office park in Bangalore, to Embassy Office Parks REIT. Apart from this, a fundraising exercise by the REIT through a Qualified Institutional Placement (QIP) at that time had lowered Blackstone’s holding in the REIT to 38% from over 46%.
Embassy REIT owns and operates a 42.4 million sq ft portfolio of eight infrastructure-like office parks and four citycentre office buildings in India’s key office markets of Bangalore, Mumbai, Pune, and the National Capital Region. Its portfolio comprises 32.3 million sq ft completed operating area and counts over 190 global companies as occupiers.
Blackstone is the largest office, retail and warehousing landlord in India and has deployed over $11 billion in the country’s commercial real estate so far.
American Homes 4 Rent (NYSE:AMH – Get Rating) had its target price dropped by Morgan Stanley from $39.00 to $37.50 in a research report issued on Friday, The Fly reports. The brokerage presently has an “equal weight” rating on the real estate investment trust’s stock. Morgan Stanley’s price target would suggest a potential upside of 3.96% from the stock’s current price.
Several other analysts also recently commented on the company. StockNews.com downgraded American Homes 4 Rent from a “hold” rating to a “sell” rating in a research note on Monday, June 13th. Evercore ISI set a $40.00 price target on American Homes 4 Rent in a research note on Monday, June 20th. Credit Suisse Group dropped their price target on American Homes 4 Rent from $44.00 to $36.00 and set a “neutral” rating on the stock in a research note on Thursday, June 23rd. Jefferies Financial Group dropped their price target on American Homes 4 Rent from $44.00 to $41.00 and set a “buy” rating on the stock in a research note on Thursday, June 30th. Finally, Raymond James reissued a “strong-buy” rating and issued a $45.00 price target (down previously from $48.00) on shares of American Homes 4 Rent in a research note on Thursday, June 23rd. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, American Homes 4 Rent presently has a consensus rating of “Moderate Buy” and an average price target of $43.22.
American Homes 4 Rent Price Performance
AMH stock opened at $36.07 on Friday. The company has a market capitalization of $12.56 billion, a PE ratio of 76.74, a P/E/G ratio of 2.92 and a beta of 0.58. American Homes 4 Rent has a 52-week low of $32.60 and a 52-week high of $44.07. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 0.55. The stock’s 50 day moving average is $35.90 and its two-hundred day moving average is $38.46.
American Homes 4 Rent (NYSE:AMH – Get Rating) last issued its quarterly earnings data on Thursday, May 5th. The real estate investment trust reported $0.16 EPS for the quarter, topping the consensus estimate of $0.11 by $0.05. The business had revenue of $356.11 million for the quarter, compared to the consensus estimate of $355.76 million. American Homes 4 Rent had a return on equity of 3.05% and a net margin of 13.74%. The firm’s revenue was up 13.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.32 EPS. Analysts predict that American Homes 4 Rent will post 1.56 earnings per share for the current fiscal year.
Insider Buying and Selling
In other American Homes 4 Rent news, Director Tamara Hughes Gustavson purchased 200,000 shares of American Homes 4 Rent stock in a transaction that occurred on Thursday, May 12th. The stock was acquired at an average price of $35.71 per share, for a total transaction of $7,142,000.00. Following the completion of the acquisition, the director now owns 8,830,956 shares of the company’s stock, valued at approximately $315,353,438.76. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders acquired 200,706 shares of company stock worth $7,161,700. Company insiders own 6.03% of the company’s stock.
Institutional Investors Weigh In On American Homes 4 Rent
A number of institutional investors have recently made changes to their positions in the company. IFM Investors Pty Ltd bought a new stake in shares of American Homes 4 Rent during the second quarter worth approximately $2,138,000. Raymond James Trust N.A. boosted its holdings in shares of American Homes 4 Rent by 15.9% during the second quarter. Raymond James Trust N.A. now owns 6,129 shares of the real estate investment trust’s stock worth $217,000 after acquiring an additional 842 shares during the period. Gateway Investment Advisers LLC boosted its holdings in shares of American Homes 4 Rent by 1.3% during the second quarter. Gateway Investment Advisers LLC now owns 363,549 shares of the real estate investment trust’s stock worth $12,884,000 after acquiring an additional 4,788 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd boosted its holdings in shares of American Homes 4 Rent by 76.9% during the second quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 57,486 shares of the real estate investment trust’s stock worth $2,037,000 after acquiring an additional 24,981 shares during the period. Finally, Manning & Napier Group LLC boosted its holdings in shares of American Homes 4 Rent by 43.0% during the second quarter. Manning & Napier Group LLC now owns 250,717 shares of the real estate investment trust’s stock worth $8,884,000 after acquiring an additional 75,449 shares during the period. Institutional investors own 88.49% of the company’s stock.
About American Homes 4 Rent
American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and “American Homes 4 Rent” is fast becoming a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties.
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