Thesis
Reven Housing REIT targets a working- and middle-class demographic where renting has strong appeal. Combined with low supply growth in lower-cost housing and strong performance among Reven’s invested markets, their portfolio has the potential for solid increases in rental rates and occupancy growth. While these positive attributes have the potential to make Reven a desirable investment opportunity, the company's inability to control costs as a result of a lack of concentration in its core markets has hampered profitability, posing a major barrier to earnings growth. Consequently, I will not be buying Reven currently and