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  5. TCN: In the US Democrats have introduced legislation in both Congress and the Senate that would ban hedge funds, corporations, partnerships and REITs from buying and owning single family homes in the US. [Tricon Residential Inc.]
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Q: In the US Democrats have introduced legislation in both Congress and the Senate that would ban hedge funds, corporations, partnerships and REITs from buying and owning single family homes in the US. Does this pose a material threat to Tricon Residential? If this law were to not apply to Tricon, perhaps it is an opportunity for them as those on the wrong side of this law,would have to sell them within 10 years. Interested in your comments.
Asked by Glenn on January 19, 2024
5i Research Answer:

Looking into the proposed legislation of the End Hedge Fund Control of American Homes Act, it appears that this will primarily target hedge funds who own single family homes. If this is the case a company like TCN should be affected, as a corporation. However, it is unclear at this time as to the possible extent of any legislation. Additionally, there is skepticisim if the legislation will even pass through congress, and these process are typically long and drawnout. We do not see this as a material threat to TCN, but it is worth monitoring the exact organization types that would be included under the proposed legislation. The stock has been down every day this week and sentiment may be weak until this situation has more clarity. We would not, at this time, make any moves based on this news. As noted, it could possibly end up being positive for the company depending on how things play out.