Bloom off the rose for 'REO to rental'?

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Shares in American Homes 4 Rent, the second-biggest player in the “REO to rental” business with nearly 18,000 properties under management, slipped in the first day of trading.

The real estate investment trust (REIT) raised $706 million in a Wednesday IPO — far less than the $1.25 billion estimated by the company in a June prospectus.

It remains to be seen if companies seeking to rent single-family homes out can make the same kind of returns as multifamily property managers, analyst Dave Bragg of Green Street Advisors Inc. said before the IPO. Source: bloomberg.com.