Thousands of shareholders joined billionaire Jeff Bezos in awaiting the much-anticipated Arrived Homes earnings report.
But they weren’t the usual millionaire shareholders waiting to see how their assets have fared in turbulent times. Instead, many of those shareholders invested a mere $100 — a real estate investment tactic Bezos recognized as having potential.
Arrived Homes is a new investment platform offering shares of carefully selected single-family rentals. Only 1% of considered properties make it past the company’s rigorous vetting process, which aims to maximize returns for shareholders.
Each quarter, the company’s data team compiles a report to inform shareholders of how much their assets have returned. While expectations were high for the third quarter, almost nobody could have anticipated the numbers that came in.
In 2022, the company’s properties generated $3.3 million for their shareholders, and that only scratches the surface. A closer look at the numbers for the third quarter reveals why the company got the trust of the world’s second-richest man as well as entrepreneur Marc Benioff and Uber Technologies Inc. CEO Dara Khosrowshahi, who have also invested hefty sums into the company.
In the third quarter alone, the company returned a stunning $1.9 million from the 184 rentals in its portfolio — $10,326 per rental on average for a period of only three months. The shares appreciated an average of 12.6% and grew the shareholders’ portfolios by a total of $1.5 million, while rent dividends yielded $373,000.
Click here to secure a piece of Q4’s returns.
There are two key takeaways here — returns tripled in just six months, and the timing is nothing short of astounding, given that public real estate investment trusts (REITs) recorded a negative 10.8% and S&P 500 fell by 4.9% in the same period.
One of the key reasons the Bezos-backed company scored these numbers in the ongoing bear market lies in its human resources. Arrived hires real estate veterans who are able to negotiate lower purchasing prices from sellers and higher rental income from tenants. In the third quarter, they managed to secure higher-than-expected rent from 49 of the 53 properties they leased.
The report also states that the first sold-out vacation rental got its first six bookings. Vacation rentals recently included in the Arrived Homes portfolio are listed on Airbnb and similar websites. They allow the opportunity for higher income, while regular rentals offer the chance for a more consistent yield.
Arrived has already amassed a substantial base of shareholders who quickly buy up newly uploaded rentals, and a report like this is surely going to attract a slew of new investors.
If you’d like a piece of fourth-quarter returns from Arrived’s rentals, Benzinga encourages you to check out its currently available offerings, before they sell out.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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