NexPoint-managed single-family landlord eyes IPO amid rental boom

VineBrook Homes operates over 13K rental homes, primarily in the Midwest

NexPoint founder and principal James Dondero (Nexbank)
NexPoint founder and principal James Dondero (Nexbank)

As demand for rental properties grows, NexPoint is looking to harness the momentum by taking a single-family landlord public.

VineBrook Homes Trust, a massive single-family landlord managed by NexPoint Real Estate Advisors, is in discussions to potentially pursue an IPO by the end of the year, according to Bloomberg News.

The company operates over 13,500 single-family rentals across 16 states, primarily in the Midwest. Around half of its portfolio is in Cincinnati, Columbus and Dayton. The average rent on VineBrook’s properties is $1,000 a month, relatively affordable compared to its peers in the market.

A person familiar with the matter told Bloomberg News that the discussions are not conclusive, and the company may wait until 2022 or even choose to remain private.

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Desires to go public could stem from a hot housing market that has buoyed single-family rentals. Once considered the domain of smaller investors, rentals are now seen as a tremendous asset for larger players as Americans look to find places to stay without long-term commitments. Rents on single-family homes are growing at their fastest rate in a decade.

Blackstone’s Invitation Homes is seen as a leader in the market. The firm went public in 2017 with an offering at $1.5 billion and a portfolio of almost 48,000 homes at the time. It now owns more than 80,000 units.

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[Bloomberg News] — Holden Walter-Warner

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