Build-to-Rent News: SFR REIT VineBrook Halts Redemptions, Plans Home Sales (Nov 12)

What happened today

A nontraded single-family rental REIT hit a liquidity wall, and Build-to-Rent owners are being judged on capital structure. Here are the five stories behind today's episode of Build 2 Rent News.

VineBrook halts all redemptions and plans to sell about 3,775 homes

VineBrook Homes Trust has stopped processing all share repurchase requests, including hardship requests. It cut its net asset value to $50.03 a share from $52.68 and, according to AltsWire, has about $651 million of debt coming due within 12 months. The company plans to sell about 2,725 VineBrook homes and 1,050 NexPoint Homes over the next year.

Sources: AltsWire, SEC filing.

Build-to-Rent occupancy holds at 94.9% while rents dip

National single-family Build-to-Rent occupancy was 94.9% in October, per Yardi Matrix. Advertised rents averaged $2,247, down $4 for the month and up 1.1% year over year. Renter-by-necessity communities were 96.9% occupied with 2.6% rent growth, while lifestyle communities were 94.6% occupied with 0.8% growth. Miami rents rose 5.6% and Austin 3.9%, while San Antonio fell 5.5% and Houston 2.4%.

Sources: CRE Daily, Yardi Matrix.

Build-to-Rent is being decided in the suburbs

GatherGov counted 941 Build-to-Rent mentions in 458 local government meeting documents across 238 jurisdictions in 39 states. Texas led with 224 mentions, followed by Georgia with 113 and Florida with 104. Core cities in 14 large metros produced just 7 mentions combined, while Pearland, Texas alone had 52.

Sources: CRE Daily, GatherGov.

UK pension funds eye a 974-home Build-to-Rent portfolio

Northern LGPS and Local Pensions Partnership Investments are in talks to buy a £340 million Build-to-Rent portfolio of 974 existing homes across eight assets in and around London. The seller is a joint venture between ADIA and Greystar. In Ireland, the I-RES board recommends a Barings cash offer valuing the company at about €731 million.

Source: Bisnow.

Cyprus offers developers up to 45% more density for Build-to-Rent

Eligible developers in Cyprus can get up to 45% more permitted floor area. Applications correspond to more than 2,500 homes over two years, about 400 of them affordable, and the state plans about 500 affordable rental homes on state land by 2029.

Source: Cyprus Mail.

Watch the full episode: https://youtu.be/g4d2yF1Y3Ng

News and commentary for information only. Not investment advice.