The landscape looks grim for Wall Street investors that lapped up thousands of homes during the crisis and sold stock using these homes as capital. Now, these 'paper' landlords are having difficulty earning on these properties bought and have faced the wrath of investors for failing to deliver the goods, according to a recent report from Bloomberg.com.
These home-rental firms, as they have become known, had their IPOs fall by as much as 5 percent in the last month. If these companies were backed by the Wall Street big boys such as Blackstone Group LP, Colony Capital Inc. and Goldman Sachs Group Inc, then there is a difference.
One of the largest of these firms is Invitation Homes, a company of Blackstone which is the largest single owner of single-family properties in the country. Its CEO, John Bartling, recently said, "Companies should be built privately. Unless you can communicate it and forecast it well, you're going to struggle with investors as they try to determine how to forecast your earnings."
For its part, Blackstone's Invitation Homes is in no rush to become a real estate investment trust or REIT. CEO Bartling had declined to issue a statement on IPO plans for the company.
Another Blackstone firm, the Blackstone Mortgage Trust, recently announced its earnings result. According to a report from analystratingreports.com, the company reported revenues amounting to $49.85 million and earnings per share at $0.36. Previous projections from analysts pegged revenue to be at just $44.72 million with an EPS of $0.36.
Blackstone Mortgage Trust Inc. is a real estate finance company that originates and buys senior loans with property collaterals. Its most recent transaction was the unloading of 245 shares priced at $27.69 each last June 30,2015. The buyer of the said shares, costing $6,784 was Capital Trust Inc.