In a bid to raise its financial flexibility, American Residential Properties, Inc. ARPI has revised and extended its senior secured revolving credit facility. The revised credit facility allows the Scottsdale, AZ-based residential real estate investment trust (“REIT”) to borrow up to $450 million. This includes a revolving credit facility of $200 million as well as a term loan facility which allows a single draw term loan of $250 million.
American Residential Properties is engaged in acquisition, renovation, leasing and management of single-family properties primarily in the U.S. Notably, under the revised credit facility, the expiration date has been extended to May 2017 and it includes two optional six-month extensions. In addition, the renewed facility contains an accordion feature through which the maximum borrowing capacity can be raised by another $300 million. However, this feature will only be applicable after fulfillment of certain criteria on part of the lenders.
American Residential Properties currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the residential REIT space may consider stocks like Preferred Apartment Communities, Inc. APTS, Apartment Investment and Management Company AIV and Armada Hoffler Properties, Inc. AHH. While Preferred Apartment Communities sports a Zacks Rank #1 (Strong Buy), both Apartment Investment and Management and Armada Hoffler Properties hold a Zacks Rank #2 (Buy).
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