American Homes 4 Rent cuts staff after 2Q loss
American Homes 4 Rent, the second-largest owner of single-family rentals in the U.S., fired several members of its acquisition and construction staff on the heels of a second-quarter loss.
The Malibu, Calif.-based landlord saw a $14 million net loss, or 15 cents a share, on its revenue of $18.1 million over the quarter that ended in June. It raised $705.9 million in an initial public offering last month, but expected to generate $1.25 billion. Shares dropped to $15.97 after the firings were reported last week.
“It’s a complete shock,” said Craig Smith, a property-compliance inspector who was terminated after nine months. “I was out working and they called me to the office and told me I was cut.”
American Homes 4 Rent, second to the New York-based Blackstone Group in size, is reducing the number of properties it purchases. It plans to spend nearly $100 million per month on 800 to 1,000 additional homes, Bloomberg News reported.
Of the 684 employees – as of a July filing – 244 workers handle property management and marketing, 262 deal with renovations and 178 inspect and acquire houses. [Bloomberg News] — Mark Maurer