Invitation Homes To Merge With Starwood Waypoint To Create $11 Billion Rental Company

Invitation Homes , which went public in February, is merging with StarWood Waypoint Homes to create a company with a combined market value of $11 billion, the companies announced Thursday. The two companies, which both own and operate single-family rental homes in the U.S., have signed a definitive agreement to merge in a 100% stock-for-stock transaction, with each Starwood Waypoint Homes share converted into 1.614 Invitation Homes shares. The new company will still have the name Invitation Homes, with Fred Tuomi, the current chief executive of StarWood Waypoint Homes as CEO. Bryce Blair, the CEO of the current Invitation Homes will be chairman. The combined shares are expected to continue trading under Invitation Homes' ticker, "INVH." Invitation Homes also reported second-quarter earnings Thursday, with net income of $5.5 million, or 2 cents per share, after reporting a loss of $19.7 million in the year-earlier period, or a loss per share of 6 cents. Analysts surveyed by FactSet were expecting earnings per share of 2 cents. It reported revenue of $242 million, in line with the FactSet consensus. Shares of both Invitation Homes and Starwood were still inactive in premarket trade Thursday. Invitation Homes shares have lost 3% in the past three months, while Starwood's stock has gained 1.2% and the S&P 500 has gained 3%.