Silver Bay is also structured as an umbrella partnership REIT (UPREIT), which will provide the opportunity to roll-up smaller players with existing portfolios, the analysts note, which could provide more growth than projected.
Buying into Silver Bay might offer some exposure to rising housing markets.
Of the company's portfolio through September 30, 2012, Phoenix accounted for approximately 31%, Tampa and Orlando 27%, and Atlanta 17% for a combined 75%. Based on data from Case-Shiller, home prices are up a weighted average of approximately 10% for the year in the company's markets, according to the report.
The analysts have a price target of $22 for the REIT, which is 1.2 times its book value and equates to a eventual 2015 dividend yield of 4.6%.-- Written by Shanthi Bharatwaj in New York. -- Written by Shanthi Bharatwaj in New York.