Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

sway-10q_20150630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One) 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

or

o

TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number 001- 36163

 

Starwood Waypoint Residential Trust

(Exact name of registrant as specified in its charter)

 

 

Maryland

 

80-6260391

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

 

 

1999 Harrison St

Oakland, CA

 

94612

(Address of principal executive offices)

 

(Zip Code)

(510) 250-2200

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x   No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  x    No  o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

¨

 

 

Accelerated filer

¨

 

 

 

 

 

 

Non-accelerated filer

x

 

(Do not check if a smaller reporting company)

Smaller reporting company

¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

As of July 31, 2015, there were 37,906,741 of the registrant’s common shares, par value $0.01 per share, outstanding.

 

 

 

 


STARWOOD WAYPOINT RESIDENTIAL TRUST

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2015

INDEX

 

Part I.

 

Financial Information

 

 

 

 

 

 

 

Item 1.

 

Financial Statements (Unaudited)

 

1

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

1

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

2

 

 

 

 

 

 

 

Condensed Consolidated Statements of Other Comprehensive Income (Loss)

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Equity

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

5

 

 

 

 

 

 

 

Notes to the Condensed Consolidated Financial Statements

 

7

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

34

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

51

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

51

 

 

 

 

 

Part II.

 

Other Information

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

52

 

 

 

 

 

Item 1A.

 

Risk Factors

 

52

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

52

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

52

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

52

 

 

 

 

 

Item 5.

 

Other Information

 

52

 

 

 

 

 

Item 6.

 

Exhibits

 

52

 

 

 

 

 

Signatures

 

53

 

 

 

 

 

Index to Exhibits

 

54

 

 

 


FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of Starwood Waypoint Residential Trust (“we,” “our” or “us”) contains, in addition to historical information, certain forward-looking statements that involve significant risks and uncertainties, which are difficult to predict, and are not guarantees of future performance. Such statements can generally be identified by words such as “anticipates,” “expects,” “intends,” “will,” “could,” “believes,” “estimates,” “continue,” and similar expressions. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on certain assumptions and discuss future expectations, describe future plans and strategies, and contain financial and operating projections or state other forward-looking information. Our ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in, or implied by, the forward-looking statements. Factors that could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects, as well as our ability to make distributions to our shareholders, include, but are not limited to:

·

the risk factors referenced in this Quarterly Report on Form 10-Q are set forth under Item 1A. Risk Factors in our Annual Report on Form 10-K filed on March 6, 2015 and should be read in conjunction with this Quarterly Report on Form 10-Q;

·

expectations regarding the timing of generating additional revenues;

·

changes in our business and growth strategies;

·

volatility in the real estate industry, interest rates and spreads, the debt or equity markets, the economy generally or the rental home market specifically, whether the result of market events or otherwise;

·

events or circumstances that undermine confidence in the financial markets or otherwise have a broad impact on financial markets, such as the sudden instability or collapse of large financial institutions or other significant corporations, terrorist attacks, natural or man-made disasters, or threatened or actual armed conflicts;

·

declines in the value of homes, and macroeconomic shifts in demand for, and competition in the supply of, rental homes;

·

the availability of attractive investment opportunities in homes that satisfy our investment objective and business and growth strategies;

·

the impact of changes to the supply of, value of and the returns on distressed and non-performing residential mortgage loans (“NPLs”);

·

our ability to convert the homes and NPLs we acquire into rental homes generating attractive returns;

·

our ability to successfully modify or otherwise resolve NPLs;

·

our ability to lease or re-lease our rental homes to qualified residents on attractive terms or at all;

·

the failure of residents to pay rent when due or otherwise perform their lease obligations;

·

our ability to effectively manage our portfolio of rental homes;

·

the concentration of credit risks to which we are exposed;

·

the availability, terms and deployment of short-term and long-term capital;

·

the adequacy of our cash reserves and working capital;

·

the potential internalization of SWAY Management, LLC (our “Manager”);

·

our relationships with Starwood Capital Group Global, L.P. (“Starwood Capital Group”) and our Manager, and their ability to retain qualified personnel;

·

potential conflicts of interest with Starwood Capital Group, our Manager and Waypoint Real Estate Group HoldCo, LLC and its affiliates;

·

the timing of cash flows, if any, from our investments;

·

unanticipated increases in financing and other costs, including a rise in interest rates;

·

our expected leverage;

·

effects of derivative and hedging transactions;

i


·

actions and initiatives of the U.S. government and changes to U.S. government policies that impact the economy generally and, more specifically, the housing and rental markets;

·

changes in governmental regulations, tax laws (including changes to laws governing the taxation of real estate investment trusts (“REITs”)) and rates, and similar matters;

·

limitations imposed on our business and our ability to satisfy complex rules in order for us and, if applicable, certain of our subsidiaries to qualify as a REIT for U.S. federal income tax purposes and the ability of certain of our subsidiaries to qualify as taxable REIT subsidiaries for U.S. federal income tax purposes, and our ability and the ability of our subsidiaries to operate effectively within the limitations imposed by these rules; and

·

estimates relating to our ability to make distributions to our shareholders in the future.

When considering forward-looking statements, keep in mind the risk factors and other cautionary statements contained in our Annual Report on Form 10-K for the year ended December 31, 2014 and other cautionary statements in this Quarterly Report on Form 10-Q. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this Quarterly Report on Form 10-Q. We recommend that readers read this document in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014 and see the discussion on risk factors in Item 1A. Risk Factors, that was filed with the Securities and Exchange Commission on March 6, 2015. Our actual results and performance may differ materially from those set forth in, or implied by, our forward-looking statements. Accordingly, we cannot guarantee future results or performance. Furthermore, except as required by law, we are under no duty to, and we do not intend to, update any of our forward-looking statements after the date of this Quarterly Report on Form 10-Q, whether as a result of new information, future events or otherwise.

 

 

 

ii


PART I - FINANCIAL INFORMATION

 

 

Item 1. Financial Statements

STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(Unaudited)

 

 

 

As of

 

 

As of

 

 

 

June 30,

 

 

December 31,

 

 

 

2015

 

 

2014

 

ASSETS

 

 

 

 

 

 

 

 

Investments in real estate properties

 

 

 

 

 

 

 

 

Land

 

$

389,320

 

 

$

359,889

 

Building and improvements

 

 

1,815,697

 

 

 

1,619,622

 

Total investments in real estate properties

 

 

2,205,017

 

 

 

1,979,511

 

Less: accumulated depreciation

 

 

(72,572

)

 

 

(41,563

)

Investments in real estate properties, net

 

 

2,132,445

 

 

 

1,937,948

 

Real estate held for sale, net

 

 

94,293

 

 

 

32,102

 

Total investments in real estate properties, net

 

 

2,226,738

 

 

 

1,970,050

 

Non-performing loans

 

 

79,538

 

 

 

125,488

 

Non-performing loans held for sale

 

 

87,509

 

 

 

26,911

 

Non-performing loans (fair value option)

 

 

412,503

 

 

 

491,790

 

Resident and other receivables, net

 

 

23,620

 

 

 

17,270

 

Cash and cash equivalents

 

 

79,984

 

 

 

175,198

 

Restricted cash

 

 

87,247

 

 

 

50,749

 

Deferred financing costs, net

 

 

29,605

 

 

 

34,160

 

Asset-backed securitization certificates

 

 

26,553

 

 

 

26,553

 

Other assets

 

 

20,836

 

 

 

17,994

 

Total assets

 

$

3,074,133

 

 

$

2,936,163

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Senior SFR facility

 

$

629,558

 

 

$

441,239

 

Master repurchase agreement

 

 

404,730

 

 

$

454,249

 

Asset-backed securitization, net

 

 

527,043

 

 

 

526,816

 

Convertible senior notes, net

 

 

367,792

 

 

 

363,110

 

Accounts payable and accrued expenses

 

 

60,121

 

 

 

52,457

 

Resident security deposits and prepaid rent

 

 

22,091

 

 

 

17,857

 

Total liabilities

 

 

2,011,335

 

 

 

1,855,728

 

Commitments and contingencies (Note 11)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred shares, $0.01 par value-100,000,000 authorized;

   none issued and outstanding as of June 30, 2015 and December 31, 2014

 

 

 

 

 

 

Common shares, $0.01 par value-500,000,000 authorized; 37,841,943

   issued and outstanding as of June 30, 2015, and 37,778,663

   issued and outstanding as of December 31, 2014

 

 

381

 

 

 

378

 

Additional paid-in capital

 

 

1,128,334

 

 

 

1,133,239

 

Accumulated deficit

 

 

(67,999

)

 

 

(53,723

)

Accumulated other comprehensive loss

 

 

(162

)

 

 

(70

)

Total Starwood Waypoint Residential Trust equity

 

 

1,060,554

 

 

 

1,079,824

 

Non-controlling interests

 

 

2,244

 

 

 

611

 

Total equity

 

 

1,062,798

 

 

 

1,080,435

 

Total liabilities and equity

 

$

3,074,133

 

 

$

2,936,163

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

1


STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues, net

 

$

46,677

 

 

$

23,602

 

 

$

88,660

 

 

$

37,367

 

Other property revenues

 

 

1,539

 

 

 

890

 

 

 

2,833

 

 

 

1,369

 

Realized gain on non-performing loans, net

 

 

4,315

 

 

 

3,357

 

 

 

14,486

 

 

 

5,200

 

Realized gain on loan conversions, net

 

 

6,123

 

 

 

6,483

 

 

 

14,672

 

 

 

11,897

 

Total revenues

 

 

58,654

 

 

 

34,332

 

 

 

120,651

 

 

 

55,833

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating and maintenance

 

 

10,195

 

 

 

7,791

 

 

 

21,520

 

 

 

13,823

 

Real estate taxes and insurance

 

 

8,880

 

 

 

4,468

 

 

 

17,545

 

 

 

7,611

 

Mortgage loan servicing costs

 

 

9,586

 

 

 

5,139

 

 

 

19,581

 

 

 

10,021

 

Non-performing loan management fees and expenses

 

 

2,589

 

 

 

1,871

 

 

 

6,155

 

 

 

4,286

 

General and administrative

 

 

4,004

 

 

 

4,444

 

 

 

7,862

 

 

 

9,814

 

Share-based compensation

 

 

1,390

 

 

 

2,130

 

 

 

3,317

 

 

 

2,459

 

Investment management fees

 

 

4,881

 

 

 

3,993

 

 

 

9,662

 

 

 

6,750

 

Separation costs

 

 

 

 

 

 

 

 

 

 

 

3,543

 

Acquisition fees and other expenses

 

 

259

 

 

 

186

 

 

 

622

 

 

 

447

 

Interest expense, including amortization

 

 

19,595

 

 

 

5,191

 

 

 

37,212

 

 

 

6,691

 

Depreciation and amortization

 

 

18,984

 

 

 

7,243

 

 

 

36,992

 

 

 

12,716

 

Finance related expenses and write-off of loan costs

 

 

911

 

 

 

5,441

 

 

 

1,455

 

 

 

5,441

 

Impairment of real estate

 

 

440

 

 

 

1,233

 

 

 

659

 

 

 

2,067

 

Total expenses

 

 

81,714

 

 

 

49,130

 

 

 

162,582

 

 

 

85,669

 

Loss before other income, income tax

   expense and non-controlling interests

 

 

(23,060

)

 

 

(14,798

)

 

 

(41,931

)

 

 

(29,836

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized gain (loss) on sales of investments in real estate, net

 

 

458

 

 

 

(56

)

 

 

704

 

 

 

(201

)

Realized gain on sales of divestiture homes, net

 

 

1,101

 

 

 

 

 

 

319

 

 

 

 

Unrealized gain on non-performing loans, net

 

 

18,426

 

 

 

3,641

 

 

 

38,383

 

 

 

3,641

 

Loss on derivative financial instruments, net

 

 

(65

)

 

 

(470

)

 

 

(276

)

 

 

(470

)

Total other income

 

 

19,920

 

 

 

3,115

 

 

 

39,130

 

 

 

2,970

 

Loss before income tax expense

   and non-controlling interests

 

 

(3,140

)

 

 

(11,683

)

 

 

(2,801

)

 

 

(26,866

)

Income tax expense

 

 

199

 

 

 

350

 

 

 

424

 

 

 

485

 

Net loss

 

 

(3,339

)

 

 

(12,033

)

 

 

(3,225

)

 

 

(27,351

)

Net income attributable to non-controlling interests

 

 

(98

)

 

 

(83

)

 

 

(219

)

 

 

(73

)

Net loss attributable to Starwood Waypoint

   Residential Trust shareholders

 

$

(3,437

)

 

$

(12,116

)

 

$

(3,444

)

 

$

(27,424

)

Weighted-average shares outstanding-basic and diluted

 

 

38,096,969

 

 

 

39,079,365

 

 

 

37,959,928

 

 

 

39,091,796

 

Net loss per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.09

)

 

$

(0.31

)

 

$

(0.09

)

 

$

(0.70

)

Dividends per common share

 

$

0.14

 

 

$

 

 

$

0.28

 

 

$

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

2


STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS)

(in thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Other Comprehensive Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,339

)

 

$

(12,033

)

 

$

(3,225

)

 

$

(27,351

)

Interest rate caps

 

 

(23

)

 

 

 

 

 

(92

)

 

 

 

Comprehensive loss

 

 

(3,362

)

 

 

(12,033

)

 

 

(3,317

)

 

 

(27,351

)

Comprehensive income attributable

   to non-controlling interests

 

 

(98

)

 

 

(83

)

 

 

(219

)

 

 

(73

)

Comprehensive loss attributable to

   Starwood Waypoint Residential

   Trust shareholders

 

$

(3,460

)

 

$

(12,116

)

 

$

(3,536

)

 

$

(27,424

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

3


STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Starwood

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

 

Additional

 

 

 

 

 

 

Other

 

 

Waypoint

 

 

Non-

 

 

 

 

 

 

 

Number

 

 

Par

 

 

Paid-in

 

 

Accumulated

 

 

Comprehensive

 

 

Residential

 

 

controlling

 

 

Total

 

 

 

of Shares

 

 

Value

 

 

Capital

 

 

Deficit

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

Balance at December 31, 2014

 

 

37,778,663

 

 

$

378

 

 

$

1,133,239

 

 

$

(53,723

)

 

$

(70

)

 

$

1,079,824

 

 

$

611

 

 

$

1,080,435

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(3,444

)

 

 

 

 

 

(3,444

)

 

 

219

 

 

 

(3,225

)

Dividends declared or paid

 

 

 

 

 

 

 

 

 

 

 

(10,832

)

 

 

 

 

 

(10,832

)

 

 

 

 

 

(10,832

)

Repurchases of common shares

 

 

(332,250

)

 

 

(4

)

 

 

(8,298

)

 

 

 

 

 

 

 

 

(8,302

)

 

 

 

 

 

(8,302

)

Board member compensation paid

   in shares

 

 

3,237

 

 

 

 

 

 

83

 

 

 

 

 

 

 

 

 

83

 

 

 

 

 

 

83

 

Board member forfeiture of shares

 

 

(1,111

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

393,404

 

 

 

7

 

 

 

3,310

 

 

 

 

 

 

 

 

 

3,317

 

 

 

 

 

 

3,317

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(92

)

 

 

(92

)

 

 

 

 

 

(92

)

Non-controlling interests contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,521

 

 

 

1,521

 

Non-controlling interests distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(107

)

 

 

(107

)

Balance at June 30, 2015

 

 

37,841,943

 

 

$

381

 

 

$

1,128,334

 

 

$

(67,999

)

 

$

(162

)

 

$

1,060,554

 

 

$

2,244

 

 

$

1,062,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Starwood

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

 

Additional

 

 

 

 

 

 

Other

 

 

Waypoint

 

 

Non-

 

 

 

 

 

 

 

Number

 

 

Par

 

 

Paid-in

 

 

Accumulated

 

 

Comprehensive

 

 

Residential

 

 

controlling

 

 

Total

 

 

 

of Shares

 

 

Value

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Trust Equity

 

 

Interests

 

 

Equity

 

Balance at December 31, 2013

 

 

1,000

 

 

$

 

 

$

1,018,267

 

 

$

(27,848

)

 

$

 

 

$

990,419

 

 

$

1,637

 

 

$

992,056

 

Net loss attributable prior to Separation

 

 

 

 

 

 

 

 

 

 

 

(921

)

 

 

 

 

 

(921

)

 

 

(10

)

 

 

(931

)

Net loss attributable after Separation

 

 

 

 

 

 

 

 

 

 

 

(26,503

)

 

 

 

 

 

(26,503

)

 

 

83

 

 

 

(26,420

)

Net effects of recapitalization and

   capital contributions of Starwood

   Waypoint Residential Trust

 

 

39,109,969

 

 

 

391

 

 

 

99,130

 

 

 

28,769

 

 

 

 

 

 

128,290

 

 

 

 

 

 

128,290

 

Repurchases of common shares

 

 

(106,414

)

 

 

 

 

 

(2,903

)

 

 

 

 

 

 

 

 

(2,903

)

 

 

 

 

 

(2,903

)

Board member compensation paid

   in shares

 

 

2,684

 

 

 

 

 

 

73

 

 

 

 

 

 

 

 

 

73

 

 

 

 

 

 

73

 

Share-based compensation

 

 

 

 

 

 

 

 

2,459

 

 

 

 

 

 

 

 

 

2,459

 

 

 

 

 

 

2,459

 

Non-controlling interests contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

400

 

 

 

400

 

Non-controlling interests distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,446

)

 

 

(1,446

)

Balance at June 30, 2014

 

 

39,007,239

 

 

$

391

 

 

$

1,117,026

 

 

$

(26,503

)

 

$

 

 

$

1,090,914

 

 

$

664

 

 

$

1,091,578

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

4


STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2015

 

 

2014

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(3,225

)

 

$

(27,351

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

36,992

 

 

 

12,716

 

Amortization of deferred financing costs

 

 

4,346

 

 

 

1,590

 

Amortization of securitization discount

 

 

227

 

 

 

 

Amortization of convertible debt discount

 

 

4,443

 

 

 

 

Board member compensation paid in shares

 

 

83

 

 

 

73

 

Share-based compensation expense

 

 

3,317

 

 

 

2,459

 

Realized loss (gain) on sales of investments in real estate, net

 

 

(704

)

 

 

201

 

Realized gain on sales of divestiture homes, net

 

 

(319

)

 

 

 

Realized gain on non-performing loans, net

 

 

(14,486

)

 

 

(5,200

)

Realized gain on loan conversions, net

 

 

(14,672

)

 

 

(11,897

)

Unrealized gain on non-performing loans, net

 

 

(38,383

)

 

 

(3,641

)

Loss on derivative financial instruments, net

 

 

276

 

 

 

470

 

Straight-line rents

 

 

(862

)

 

 

(610

)

Provision for doubtful accounts receivable

 

 

938

 

 

 

1,123

 

Impairment of real estate

 

 

659

 

 

 

2,067

 

Write-off of loan costs

 

 

 

 

 

5,032

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Resident and other receivables

 

 

(7,288

)

 

 

(7,891

)

Restricted cash

 

 

(32,561

)

 

 

(22,015

)

Other assets

 

 

(10,558

)

 

 

(15,292

)

Accounts payable and accrued expenses

 

 

11,125

 

 

 

31,838

 

Resident security deposits and prepaid rent

 

 

4,234

 

 

 

7,825

 

Net cash used in operating activities

 

 

(56,418

)

 

 

(28,503

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of real estate

 

 

(223,038

)

 

 

(562,339

)

Initial renovations to single-family rentals

 

 

(66,552

)

 

 

(110,634

)

Other capital expenditures for single-family rentals

 

 

(8,710

)

 

 

(2,167

)

Proceeds from sale of real estate

 

 

11,806

 

 

 

12,328

 

Proceeds from sale of divestiture homes

 

 

65,284

 

 

 

 

Purchases of non-performing loans

 

 

 

 

 

(218,311

)

Liquidation and other proceeds on loans

 

 

20,211

 

 

 

12,590

 

Principal repayments on loans