Blackstone Group LP is cashing in on its bet on the suburban rental class.
The private-equity firm late Tuesday sold more than $1 billion of shares of Invitation Homes Inc. , the giant single-family home landlord it launched following the financial crisis in a wager that many Americans would be willing to rent the suburban lifestyle they could no longer afford to own.
The share offering is Blackstone’s second since March and comes as Invitation’s shares are trading at a record, reflecting rising rents and strong demand for the 80,000-odd homes it owns in 17 markets around the country. Blackstone BX, -1.03% , which invested in Invitation from private-equity funds that are approaching deadlines to return cash to investors, now owns about 27% of Invitation’s shares, down from about 34% before the latest sale.
Invitation shares
INVH, -0.55%traded down slightly on Wednesday to $25.27, just below the $25.30 that Blackstone received in the offering. The stock is up more than 26% since debuting in a February 2017 initial public offering.
An expanded version of this report appears on WSJ.com.
Also popular on WSJ.com:
Tony Robbins loses role with $38 billion planning firm.
Robert Mueller says charging Trump with a crime was ‘not an option.’