Pretium Breakdown

Portfolio holdings, gross rental yields, rent growth, and more for Pretium.

Feb 07, 2024

∙ Paid

Pretium has built a portfolio of 90,000+ single-family rental properties across the country, with over half of the portfolio located in Florida, Texas, and Georgia. While many SFR funds operate only within the Sunbelt, Pretium’s holdings extend to the Midwest.
Earlier today, Pretium announced that it had raised a new $1 billion fund dedicated to acquiring build-to-rent (BTR) opportunities. In a statement, CEO Don Mullen also said that the company has now invested a total of more than $2.5 billion in purpose-built rental homes, resulting in 7,500 new built-to-rent homes acquired across 37 cities and 11 states.
Gross yields within the portfolio remain healthy across metros, with most at a median value in the 8% to 14% range. Detailed information breaking down gross yields by metro are available at the end of the article.

Introduction

Pretium is a leading SFR fund with a nationwide portfolio of 90,000+ homes. Like other SFR funds, Pretium was formed during the recovery period following the 2008 global financial crisis, launching in 2012. From 2013 to 2019, the fund grew steadily, acquiring 5,000+ properties per year. Acquisitions grew significantly in 2021 and 2022, with the fund acquiring 12,500+ in each year, before slowing in 2023 to less than 5,000 with the rise in interest rates.

While some SFR funds have been relatively quiet the past 18 months, Pretium has found ways to stay active. In June 2023, Pretium entered into an agreement with D.R. Horton to acquire 4,000 homes as part of a $1.5 billion deal. Earlier today, the company announced that it had raised a new $1 billion fund dedicated to acquiring build-to-rent (BTR) opportunities. In a statement, CEO Don Mullen also said that the company has now invested a total of more than $2.5 billion in purpose-built rental homes, resulting in 7,500 new built-to-rent homes acquired across 37 cities and 11 states.

As a firm, Pretium is known for its strategic and data-driven approach to investing, with various employees of the fund having titles in roles in data science and research on LinkedIn.

Data Overview

At SFR Analytics, we leverage nationwide deed, assessor, and rental listing data to track the single family rental market. To generate this analysis, we’ve:

Identified and reconciled the entities that Pretium has purchased homes under
Matched rental listing data to the underlying ownership information that links an entity to Pretium
Aggregated additional sources of data, like school ratings, to provide additional context about the neighborhoods where properties are held

Note: A more detailed breakdown of data and methodology used is available at the bottom of the post.

Analysis & Results

Geographic Distribution

Pretium has built an 90,000+ home portfolio spanning the county, with properties in the Southwest, Midwest, and Southeast.

Pretium’s largest states by ownership are Florida and Texas, followed by Georgia and Arizona. This state tilt towards Florida and Georgia is similar to public SFR REITs. For comparison, the top three states that American Homes 4 Rent owns properties in are Texas, Florida, and North Carolina; for Tricon, the top three states are Georgia, Texas, and Florida.

Purchase Price Distribution

Compared to workforce housing providers like SFR3 (profiled in a recent SFR post) and VineBrook Homes (profiled a few weeks ago), Pretium generally buys nicer homes in more desirable areas, targeting higher income tenants including families.

The median square footage of homes owned by Pretium is 1,678 square feet, compared to 1,200 square feet for SFR3 and 1,180 for VineBrook, both of which focus on affordability.

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The distribution of ratings for schools near homes owned by Pretium is similar when compared to American Homes 4 Rent and Invitation Homes. Ratings are notably higher than those for workforce housing providers like SFR3 and VineBrook.

Market-Level Gross Yields

While Pretium operates nationwide, gross yields within the portfolio vary significantly by geography.

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