These the notes from the "Next Wave" Sohn mini-conference. Stay tuned as we'll be posting notes from the main Sohn Investment Conference later on.
John Khoury. Long Pond Capital
Idea: American Homes for Rent (AMH). REIT, buys houses, fixes them up and rents them out. Debate is whether it is a good business or not. Bears say it is impossible to manage thousands of homes efficiently. Bull case: 95% occupancy, length of stay 2x that of apartments NOI margins at or higher than apartments. Doing securitization now at L+1.66 Levered up- "you want to own an asset when it begins to be securitized."
Currently 2.7% FCF yield, but with 45% net leverage get 7.0% FCF yield. "REITs do not trade at 7% FCF yields." Apartment REITS trade at 5%, if this gets there, stock has $23 PT, 40% upside. "Free call option" is consolidation, they could roll up other businesses. Still only 20% of 1% of the total market. $3T market opportunity. Founder and management own $1B of the stock. Unlevered now, so limited d
