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Monday, September 21, 2015

Starwood Waypoint, Colony American merge to tap rising home rents, (NYSE: SWAY)

Starwood Waypoint Residential Trust plans to merge with Colony American Homes Inc, which also rents out single-family residences, to tap growing U.S. demand as home ownership falls in a tight mortgage market.Starwood Waypoint shares rose about 13 percent on Monday.The company will issue 64.9 million of its shares for all outstanding Colony American shares. This values Colony American at about $1.48 billion, based on Starwood Waypoint's Friday close of $22.75.U.S. home ownership dropped to a 35-year low in the second quarter, Commerce Department data showed in July, as rising prices and tight lending standards kept first-time buyers from returning despite a strengthening jobs market.

Starwood Waypoint Residential Trust is a real estate investment trust (REIT) formed primarily to acquire, renovate, lease and manage residential assets in select markets throughout the United States. Shares of SWAY traded higher by 12.7% or $2.89/share to $25.64. In the past year, the shares have traded as low as $22.62 and as high as $26.94. On average, 287220 shares of SWAY exchange hands on a given day and today's volume is recorded at 2550801.