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NexPoint-Advised Private Single-Family Rental REIT Rumored to be Exploring IPO

Vinebrook Homes Trust Inc., a private real estate investment trust focused on single-family rental properties that is managed by an affiliate of NexPoint Real Estate Advisors, is rumored to be exploring an initial public offering.

Vinebrook Homes Trust Inc., a private real estate investment trust focused on single-family rental properties that is managed by an affiliate of NexPoint Real Estate Advisors, is rumored to be exploring an initial public offering, according to a recent report by Bloomberg.

Vinebrook Homes Trust’s portfolio consists of 13,693 single-family rental properties valued at nearly $1.8 billion, as of the first quarter of 2021, and the company has purchased nearly 5,000 of those properties in the last two years.

Bloomberg, citing people familiar with the matter, said that Vinebrook has “held discussions with advisers for an IPO that could come as soon as this year…or it “could wait to go public until 2022 or beyond, or decide to remain private.”

A representative for NexPoint/VineBrook declined to comment.

Vinebrook focuses on properties primarily located in the Midwest, Heartland and southern U.S. markets, with a large portion of its portfolio concentrated in Cincinnati, Dayton and Columbus, Ohio, as well as St. Louis, Indianapolis, Birmingham, and Kansas City.

Average monthly rent is around $1,000/month, among the lowest in the single-family rental space, which has seen a resurgence of investment activity by major players in recent months. For example, in late June, Blackstone Real Estate Income Trust, a non-traded REIT sponsored by private equity giant Blackstone, agreed to purchase Home Partners of America, the owner of approximately 17,000 single-family rental homes across the United States, in a deal valued at $6 billion.

Since launching its Regulation D private placement offering in November 2018, Vinebrook has raised $370.2 million, including proceeding from the distribution reinvestment plan.

The REIT’s most recent net asset value per share was $40.82 per share, as of June 30, 2021, and has steadily increased from its starting price of $25.00 in November 2018, according to a filing with the Securities and Exchange Commission.

Vinebrook recently became a 12(g) filer, meaning that it will file quarterly and annual financial reports with the SEC, along with other reports as required by federal securities laws. The REIT’s 12(g) status took effect because it surpassed the threshold of individual investors. As of December 31, 2020, the total value of its assets exceeded the minimum requirement, and its common stock was held by 2,000 or more persons.

NexPoint is a multibillion-dollar alternative investment platform comprised of investment advisers NexPoint Advisors, L.P. and NexPoint Real Estate Advisors, L.P., and a suite of related investment vehicles. Investment offerings include publicly traded REITs, Regulation D private placements, Delaware statutory trusts and 1031 exchanges, closed-end funds, interval funds, and a business development company.

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