Rent A House But Don't Own This Rental Stock Just Yet
As mentioned in the original analysis (see Two Harbors Provides Unique Residential REIT Opportunity To Pass On For Now) on the formation of the spin-off of Silver Bay Realty Trust (SBY) from Two Harbors Investment Corp (TWO) the process would initially be ugly. The combination of pulling in housing assets from two entities and being the first public company to attempt the owning and renting of single-family houses made the stock impossible to value. On top of that, the majority of the owned assets were acquired in 2012 leaving limited data on the stabilization process and ability to lease the houses.
The company plans to acquire, renovate, lease, and maintain a portfolio of...
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