Single-family rental business, American Homes 4 Rent, is getting a pleasant surprise as JPMorgan Chase is increasing its initial investment of $250 million to $625 million.
According to Bloomberg, JPMorgan Chase’s asset management department, the Strategic Property Fund, had initially invested $250 million into the partnership earlier this year. Thanks to a successful first quarter, the firm had reported increased revenues by 3.7% or $289.3 million.
Financial Boost for a Successful Quarter
Given the recent coronavirus pandemic, American Homes 4 Rent’s revenues did not have the same impact as other major businesses and industries due to the virus. Reports are speculating that the real impact of the pandemic in the real estate market won’t be felt until the second quarter.
Presently, American Homes 4 Rent has reported that for April and May, they had received between 82 to 95% of the rents.
Though it is business as usual for American Homes 4 Rent, they have suspended many of their acquisition dealings. One thing that is still in operations however is the development of rental homes in markets where the construction industry has either been unaffected by the pandemic or allowed to resume daily activities.
On average, American Homes 4 Rent delivers anywhere between 1,200 to 1,500 in rentals; the recent events, however, see the projected rentals down to 1,000 to 1,200.
The first quarter was a successful one for the single-family rental firm, as they were able to add 224 homes, which brought their housing portfolio to a total of 53,000 rentals.
American Homes 4 Rent was founded because of the financial crisis that saw a decline in homeownership. Founded by B. Wayne Hughes, the single-family home rental business has seen a drastic increase following the crisis. American Homes 4 Rent has also seen a growth in competitors such as Blackstone, who are now entering the booming single-family home rental industry.