American Homes 4 Rent Forms Venture With Alaska Fund

American Homes 4 Rent, the largest publicly traded U.S. single-family home landlord, formed a joint venture with Alaska Permanent Fund Corp. to buy properties that fall outside the company’s typical investing parameters.

The venture is starting with $50 million, 80 percent of which comes from Alaska Permanent Fund, Agoura Hills, California-based American Homes 4 Rent said today in a statement. The partnership plans to buy, renovate and lease homes, the company said, without specifying the types of residences that would qualify.

Alaska Permanent Fund was an early investor in American Homes 4 Rent, one of the single-family landlords formed after the real estate crash to purchase thousands of homes at distressed prices and rent them out. Institutional buyers have invested more than $20 billion and acquired as many as 200,000 houses since 2012, according to Keefe, Bruyette & Woods Inc.

Blackstone Group LP’s Invitation Homes is the largest single-family landlord, having invested $8.5 billion on about 44,000 homes as of last month.

American Homes 4 Rent, the second-biggest, owned 25,505 single-family houses as of March 31, with an estimated book value of $4.3 billion. The average property was 11.3 years old, worth $169,019 and 1,971 square feet (183 square meters), according to a May 14 regulatory filing.

Diana Laing, chief financial officer of American Homes 4 Rent, and Michael Burns, chief executive officer of Alaska Permanent Fund, didn’t immediately respond to phone messages seeking comment on the venture’s plans.

Initial Investment

Alaska Permanent Fund, which invests state oil royalties that finance annual dividends paid to state residents, invested $750 million in American Homes 4 Rent when the company was formed in 2012. The landlord, founded by billionaire Wayne Hughes, bought out the Alaska interest last year for $904.5 million.

The announcement was made after the close of regular trading. American Homes 4 Rent was little changed today at $17.98. The shares have gained 12 percent since the company’s initial public offering last July.

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