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Section 1: 10-Q (10-Q)

sway-10q_20150930.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 September 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 October 31, 2015, there were 37,972,764 of the registrant’s common shares, par value $0.01 per share, outstanding.

 

 

 

 


STARWOOD WAYPOINT RESIDENTIAL TRUST

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

INDEX

 

Part I.

 

Financial Information

 

 

 

 

 

 

 

Item 1.

 

Financial Statements (Unaudited)

 

3

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Other Comprehensive Income (Loss)

 

5

 

 

 

 

 

 

 

Condensed Consolidated Statements of Equity

 

6

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

7

 

 

 

 

 

 

 

Notes to the Condensed Consolidated Financial Statements

 

10

 

 

 

 

 

Item 2.

 

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

 

38

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

56

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

57

 

 

 

 

 

Part II.

 

Other Information

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

58

 

 

 

 

 

Item 1A.

 

Risk Factors

 

58

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

65

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

65

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

65

 

 

 

 

 

Item 5.

 

Other Information

 

65

 

 

 

 

 

Item 6.

 

Exhibits

 

65

 

 

 

 

 

Signatures

 

66

 

 

 

 

 

Index to Exhibits

 

67

 

 

 


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;

 

·

the possibility that our proposed transactions will not close, including by the failure to obtain the necessary shareholder approvals or the failure to satisfy other closing conditions under the Contribution Agreement dated as of September 21, 2015, among us, our operating partnership, SWAY Management LLC (our “Manager”) and Starwood Capital Group Global, L.P. (“Starwood Capital Group”) (the “Contribution Agreement”), or the Agreement and Plan of Merger dated as of September 21, 2015, among us, and certain of our subsidiaries and Colony American Homes (“CAH”) and certain of its subsidiaries and certain investors in CAH (the “Merger Agreement”) or by the termination of the Contribution Agreement or Merger Agreement;

 

·

failure to plan and manage the proposed internalization (the “Internalization”) of our Manager or the merger (the “Merger”) with CAH effectively and efficiently;

 

·

the possibility that the anticipated benefits from the Internalization or the Merger may not be realized or may take longer to realize than expected;

 

·

unexpected costs or unexpected liabilities that may arise from the transactions contemplated by the Contribution Agreement or the Merger Agreement, whether or not completed;

 

·

the outcome of any legal proceedings that may be instituted against us, CAH or others following the announcement of the Internalization or the Merger;

 

·

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;

i


 

·

the rates of default or decreased recovery rates on our target assets;

 

·

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

 

·

the adequacy of our cash reserves and working capital;

 

·

potential conflicts of interest with Starwood Capital Group, CAH and their 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;

 

·

our ability to maintain our exemption from registration as an investment company under the Investment Company Act of 1940, as amended;

 

·

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 (the “SEC”) 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

 

 

 

September 30,

 

 

December 31,

 

 

 

2015

 

 

2014

 

ASSETS

 

 

 

 

 

 

 

 

Investments in real estate properties

 

 

 

 

 

 

 

 

Land

 

$

405,605

 

 

$

359,889

 

Building and improvements

 

 

1,906,762

 

 

 

1,619,622

 

Total investments in real estate properties

 

 

2,312,367

 

 

 

1,979,511

 

Less: accumulated depreciation

 

 

(89,615

)

 

 

(41,563

)

Investments in real estate properties, net

 

 

2,222,752

 

 

 

1,937,948

 

Real estate held for sale, net

 

 

77,978

 

 

 

32,102

 

Total investments in real estate properties, net

 

 

2,300,730

 

 

 

1,970,050

 

Non-performing loans

 

 

71,965

 

 

 

125,488

 

Non-performing loans held for sale

 

 

 

 

 

26,911

 

Non-performing loans (fair value option)

 

 

399,774

 

 

 

491,790

 

Resident and other receivables, net

 

 

22,014

 

 

 

17,270

 

Cash and cash equivalents

 

 

109,842

 

 

 

175,198

 

Restricted cash

 

 

91,321

 

 

 

50,749

 

Deferred financing costs, net

 

 

28,670

 

 

 

34,160

 

Asset-backed securitization certificates

 

 

26,553

 

 

 

26,553

 

Other assets

 

 

16,979

 

 

 

17,994

 

Total assets

 

$

3,067,848

 

 

$

2,936,163

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Senior SFR facility

 

$

697,414

 

 

$

441,239

 

Master repurchase agreement

 

 

331,212

 

 

 

454,249

 

Asset-backed securitization, net

 

 

527,152

 

 

 

526,816

 

Convertible senior notes, net

 

 

370,195

 

 

 

363,110

 

Accounts payable and accrued expenses

 

 

72,294

 

 

 

52,457

 

Resident security deposits and prepaid rent

 

 

22,809

 

 

 

17,857

 

Total liabilities

 

 

2,021,076

 

 

 

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 September 30, 2015 and December 31, 2014

 

 

 

 

 

 

Common shares, $0.01 par value-500,000,000 authorized; 37,907,966

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

   issued and outstanding as of December 31, 2014

 

 

382

 

 

 

378

 

Additional paid-in capital

 

 

1,130,708

 

 

 

1,133,239

 

Accumulated deficit

 

 

(86,501

)

 

 

(53,723

)

Accumulated other comprehensive loss

 

 

(170

)

 

 

(70

)

Total Starwood Waypoint Residential Trust equity

 

 

1,044,419

 

 

 

1,079,824

 

Non-controlling interests

 

 

2,353

 

 

 

611

 

Total equity

 

 

1,046,772

 

 

 

1,080,435

 

Total liabilities and equity

 

$

3,067,848

 

 

$

2,936,163

 

 

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

 

3


 

STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues, net

 

$

49,197

 

 

$

30,366

 

 

$

137,857

 

 

$

67,733

 

Other property revenues

 

 

1,801

 

 

 

1,139

 

 

 

4,634

 

 

 

2,508

 

Realized gain on non-performing loans, net

 

 

26,024

 

 

 

1,941

 

 

 

40,510

 

 

 

7,141

 

Realized gain on loan conversions, net

 

 

9,270

 

 

 

5,791

 

 

 

23,942

 

 

 

17,688

 

Total revenues

 

 

86,292

 

 

 

39,237

 

 

 

206,943

 

 

 

95,070

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating and maintenance

 

 

11,580

 

 

 

8,796

 

 

 

33,100

 

 

 

22,619

 

Real estate taxes and insurance

 

 

9,957

 

 

 

5,143

 

 

 

27,502

 

 

 

12,754

 

Mortgage loan servicing costs

 

 

10,404

 

 

 

7,918

 

 

 

29,985

 

 

 

17,939

 

Non-performing loan management fees and expenses

 

 

3,146

 

 

 

3,508

 

 

 

9,301

 

 

 

7,794

 

General and administrative

 

 

3,965

 

 

 

4,627

 

 

 

11,827

 

 

 

14,441

 

Share-based compensation

 

 

2,344

 

 

 

2,101

 

 

 

5,661

 

 

 

4,560

 

Investment management fees

 

 

4,664

 

 

 

4,522

 

 

 

14,326

 

 

 

11,272

 

Acquisition fees and other expenses

 

 

244

 

 

 

217

 

 

 

866

 

 

 

664

 

Interest expense, including amortization

 

 

20,200

 

 

 

11,899

 

 

 

57,412

 

 

 

18,590

 

Depreciation and amortization

 

 

19,783

 

 

 

9,238

 

 

 

56,775

 

 

 

21,954

 

Separation costs

 

 

 

 

 

 

 

 

 

 

 

3,543

 

Transaction-related expenses

 

 

4,288

 

 

 

 

 

 

4,288

 

 

 

 

Finance related expenses and write-off of loan costs

 

 

722

 

 

 

1,334

 

 

 

2,177

 

 

 

6,775

 

Impairment of real estate

 

 

202

 

 

 

341

 

 

 

861

 

 

 

2,408

 

Total expenses

 

 

91,499

 

 

 

59,644

 

 

 

254,081

 

 

 

145,313

 

Loss before other income, income tax expense and non-controlling

   interests

 

 

(5,207

)

 

 

(20,407

)

 

 

(47,138

)

 

 

(50,243

)

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

1,472

 

 

 

125

 

 

 

2,176

 

 

 

(76

)

Realized loss on sales of divestiture homes, net

 

 

(3,320

)

 

 

 

 

 

(3,001

)

 

 

 

Unrealized (loss) gain on non-performing loans, net

 

 

(3,952

)

 

 

13,705

 

 

 

34,431

 

 

 

17,346

 

Loss on derivative financial instruments, net

 

 

(31

)

 

 

(104

)

 

 

(307

)

 

 

(574

)

Total other income

 

 

(5,831

)

 

 

13,726

 

 

 

33,299

 

 

 

16,696

 

Loss before income tax expense and non-controlling interests

 

 

(11,038

)

 

 

(6,681

)

 

 

(13,839

)

 

 

(33,547

)

Income tax expense

 

 

16

 

 

 

19

 

 

 

440

 

 

 

504

 

Net loss

 

 

(11,054

)

 

 

(6,700

)

 

 

(14,279

)

 

 

(34,051

)

Net income attributable to non-controlling interests

 

 

(109

)

 

 

(13

)

 

 

(328

)

 

 

(86

)

Net loss attributable to Starwood Waypoint Residential Trust

   shareholders

 

$

(11,163

)

 

$

(6,713

)

 

$

(14,607

)

 

$

(34,137

)

Weighted-average shares outstanding-basic and diluted

 

 

37,906,769

 

 

 

38,613,270

 

 

 

37,942,011

 

 

 

38,911,505

 

Net loss per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.29

)

 

$

(0.17

)

 

$

(0.38

)

 

$

(0.88

)

Dividends per common share

 

$

0.19

 

 

$

0.14

 

 

$

0.47

 

 

$

0.14

 

 

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

 

 

4


 

STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS)

(in thousands)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Other Comprehensive Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(11,054

)

 

$

(6,700

)

 

$

(14,279

)

 

$

(34,051

)

Interest rate caps

 

 

(8

)

 

 

 

 

 

(100

)

 

 

 

Comprehensive loss

 

 

(11,062

)

 

 

(6,700

)

 

 

(14,379

)

 

 

(34,051

)

Comprehensive income attributable to non-controlling interests

 

 

(109

)

 

 

(13

)

 

 

(328

)

 

 

(86

)

Comprehensive loss attributable to Starwood Waypoint Residential

   Trust shareholders

 

$

(11,171

)

 

$

(6,713

)

 

$

(14,707

)

 

$

(34,137

)

 

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

 

 

5


 

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

 

 

 

 

 

 

 

 

 

 

 

(14,607

)

 

 

 

 

 

(14,607

)

 

 

328

 

 

 

(14,279

)

Dividends declared or paid

 

 

 

 

 

 

 

 

 

 

 

(18,171

)

 

 

 

 

 

(18,171

)

 

 

 

 

 

(18,171

)

Repurchases of common shares

 

 

(332,250

)

 

 

(4

)

 

 

(8,298

)

 

 

 

 

 

 

 

 

(8,302

)

 

 

 

 

 

(8,302

)

Board member compensation paid

   in shares

 

 

4,462

 

 

 

 

 

 

114

 

 

 

 

 

 

 

 

 

114

 

 

 

 

 

 

114

 

Board member forfeiture of shares

 

 

(1,111

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

458,202

 

 

 

8

 

 

 

5,653

 

 

 

 

 

 

 

 

 

5,661

 

 

 

 

 

 

5,661

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(100

)

 

 

(100

)

 

 

 

 

 

(100

)

Non-controlling interests

   contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,521

 

 

 

1,521

 

Non-controlling interests

   distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(107

)

 

 

(107

)

Balance at September 30, 2015

 

 

37,907,966

 

 

$

382

 

 

$

1,130,708

 

 

$

(86,501

)

 

$

(170

)

 

$

1,044,419

 

 

$

2,353

 

 

$

1,046,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

(33,216

)

 

 

 

 

 

(33,216

)

 

 

96

 

 

 

(33,120

)

Net effects of recapitalization and

   capital contributions of Starwood

   Waypoint Residential Trust

 

 

39,109,969

 

 

 

391

 

 

 

99,130

 

 

 

28,769

 

 

 

 

 

 

128,290

 

 

 

 

 

 

128,290

 

Dividend declared

 

 

 

 

 

 

 

 

 

 

 

(5,526

)

 

 

 

 

 

(5,526

)

 

 

 

 

 

(5,526

)

Repurchases of common shares

 

 

(608,986

)

 

 

(6

)

 

 

(16,049

)

 

 

 

 

 

 

 

 

(16,055

)

 

 

 

 

 

(16,055

)

Board member compensation paid

   in shares

 

 

4,058

 

 

 

 

 

 

109

 

 

 

 

 

 

 

 

 

109

 

 

 

 

 

 

109

 

Offering costs

 

 

 

 

 

 

 

 

(782

)

 

 

 

 

 

 

 

 

(782

)

 

 

 

 

 

(782

)

Convertible senior notes

 

 

 

 

 

 

 

 

29,610

 

 

 

 

 

 

 

 

 

29,610

 

 

 

 

 

 

29,610

 

Share-based compensation

 

 

 

 

 

 

 

 

4,560

 

 

 

 

 

 

 

 

 

4,560

 

 

 

 

 

 

4,560

 

Non-controlling interests contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

400

 

 

 

400

 

Non-controlling interests distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,591

)

 

 

(1,591

)

Balance at September 30, 2014

 

 

38,506,041

 

 

$

385

 

 

$

1,134,845

 

 

$

(38,742

)

 

$

 

 

$

1,096,488

 

 

$

532

 

 

$

1,097,020

 

 

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

 

 

6


 

STARWOOD WAYPOINT RESIDENTIAL TRUST

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited) 

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2015

 

 

2014

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(14,279

)

 

$

(34,051

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

56,775

 

 

 

21,954

 

Amortization of deferred financing costs

 

 

7,019

 

 

 

3,767

 

Amortization of securitization discount

 

 

336

 

 

 

 

Amortization of convertible debt discount

 

 

6,739

 

 

 

1,048

 

Board member compensation paid in shares

 

 

114

 

 

 

109

 

Share-based compensation expense

 

 

5,661

 

 

 

4,560

 

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

 

 

(2,176

)

 

 

76

 

Realized loss on sales of divestiture homes, net

 

 

3,001

 

 

 

 

Realized gain on non-performing loans, net

 

 

(40,510

)

 

 

(7,141

)

Realized gain on loan conversions, net

 

 

(23,942

)

 

 

(17,688

)

Unrealized gain on non-performing loans, net

 

 

(34,431

)

 

 

(17,346

)

Loss on derivative financial instruments, net

 

 

307

 

 

 

574

 

Straight-line rents

 

 

(729

)

 

 

(505

)

Provision for doubtful accounts receivable

 

 

1,530