Invitation Homes is offering all of the 77 million shares of common stock to be sold in the IPO at an estimated price of between $18 and $21 per share. The common stock has been approved for listing on the New York Stock Exchange under the symbol INVH. According to the filing, there has been no public market for these shares until now.
The company stated in its S-11 filing that it has elected to qualify as a real estate investment trust (REIT) for U.S. federal income tax purposes. Invitation Homes plans to become a Maryland corporation after the completion of the offering, according to the filing.
“After the completion of this offering, affiliates of The Blackstone Group L.P. will continue to own a majority of the voting power of shares eligible to vote in the election of our directors,” Invitation Homes stated in the filing. “As a result, we will be a ‘controlled company’ within the meaning of the corporate governance standards of the NYSE.”
In July 2016, Blackstone first announced the intention to go public with Invitation Homes at some point in the first half of 2017 in order to capitalize “on a rally in U.S. single-family rental landlords to list the biggest company in the industry.”
In December 2016, Reuters and the Wall Street Journal reported that Blackstone had “filed confidentially for an initial public offering” with regard to Invitation Homes.
Blackstone created the Invitations Homes unit in 2012 in response to the housing crisis in order to capitalize on the growing demand for rental properties coming largely from people who lost homes to foreclosure in the crisis and were unable to obtain mortgage credit to buy another home.
Invitation Homes currently oversees approximately 50,000 housing units, the largest pool of rental homes across 14 of the nation’s metropolitan markets. Blackstone states on its website that the platform creates jobs and provides high quality, affordable housing for families nationwide.