Yesterday, American Homes 4 Rent (AMH) fired a group of employees working on acquisition and construction. This was after the housing landlord had reported fiscal losses during the second quarter. This was according to a person familiar with the terminations.
The company owned around 20,000 single-family housing units. AMH had cut approximately 15% of its workforce this year including an earlier round of terminations. This happened before the launch of its initial public offering last month, said source who asked not to be identified as the matter was private in nature.
AMH raised USD705.9 million during the initial public offering. The California-based company incurred net loss of USD14 million on revenue of USD18.1 million. The losses were in the quarter ended last June 30. This was according to a statement filed by the company last week.
The housing landlord, among many other single-family landlords, had been struggling to gain profit while purchasing housing units faster than they can have it filled with tenants.
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