March 8th, 2011 by Marco Santarelli
Ackman argues that Single Family Home Rental Properties possess the identical investment attributes that strongly performing stocks typically possess. Says Ackman:
We believe we’ve identified an investment with:
- A low valuation – The lowest valuation in at least a generation.
- Forced sellers – A large number of distressed transactions.
- Extremely attractive financing available – High loan-to-value, low-rate, fixed-rate, long-dated, non-recourse debt, pre-payable without penalty.
- Favorable long-term supply dynamics – Short-term oversupplied market, but long-term supply is controlled.
- Favorable long-term demand dynamics – Demographically driven demand growth.
- Out-of-favor – Currently, this is a somewhat shun asset class.
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