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Section 1: 8-K (8-K)

sfr-8k_20170809.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 9, 2017

Starwood Waypoint Homes

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

Maryland
(State or other jurisdiction
of incorporation)

 

001-36163
(Commission
File Number)

 

80-6260391
(IRS Employer
Identification No.)

 

 

 

 

8665 East Hartford Drive

Scottsdale, AZ

(Address of principal

 

 

85255

(Zip Code)

executive offices)

 

 

 

 

 

Registrant’s telephone number,
including area code:
(480) 362-9760

 

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 


Item 2.02.Results of Operations and Financial Condition.

On August 9, 2017, Starwood Waypoint Homes (the “Company”) issued a press release containing financial results of the Company and a supplemental report of financial and operating information of the Company for the quarter ended June 30, 2017.  Copies of the press release and supplemental report are attached as Exhibits 99.1 and 99.2.

The information included in Items 2.02 and 9.01 of this Current Report on Form 8-K (including Exhibits 99.1 and 99.2) are being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any of the Company’s filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), whether before or after the date hereof, except as shall be set forth by specific reference in any such filing.

Item 9.01.Financial Statements and Exhibits.

(d)  Exhibits

99.1Press Release, dated August 9, 2017, announcing the results of operations and financial condition of Starwood Waypoint Homes as of June 30, 2017 and for the quarter then ended.

99.2Supplemental Report, dated August 9, 2017.

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

STARWOOD WAYPOINT HOMES

 

Dated: August 9, 2017

By:

/s/ Ryan Berry

 

Name:  

Ryan Berry

 

Title:

General Counsel

 


Exhibit Index

99.1Press Release, dated August 9, 2017, announcing the results of operations and financial condition of Starwood Waypoint Homes as of June 30, 2017 and for the quarter then ended.

99.2Supplemental Report, dated August 9, 2017.

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

sfr-ex991_6.htm

 

Exhibit 99.1

STARWOOD WAYPOINT HOMES ANNOUNCES

SECOND QUARTER 2017 FINANCIAL AND OPERATING RESULTS

Scottsdale, Arizona (August 9, 2017) – Starwood Waypoint Homes (NYSE: SFR) (“SWH” or the “Company”), a leading single-family rental real estate investment trust (“REIT”), today announced operating and financial results for the three and six months ended June 30, 2017. Capitalized terms used herein have the meanings set forth in the Appendix to the Supplemental Report of financial and operating information posted on the Company’s website.

Second Quarter 2017 Highlights

Closed GI Portfolio acquisition of 3,106 homes increasing existing market densities, including high-growth California submarkets.

Completed a $918.9 million follow-on equity offering ($522.3 million primary and $396.6 million secondary).

Total revenues increased 7.3% to $154.4 million for the three months ended June 30, 2017 from $143.8 for the three months ended June 30, 2016.

Net loss attributable to common shareholders of $1.1 million or $0.01 per basic and diluted share for the three months ended June 30, 2017, compared to a $15.7 million net loss or a $0.15 loss per basic and diluted share for the three months ended June 30, 2016.

Core Funds from Operations (“Core FFO”) was $54.9 million or $0.45 per share for the three months ended June 30, 2017.

Core Net Operating Income (“Core NOI”) margin for Same Home properties increased to 64.6% for the three months ended June 30, 2017, compared to 62.6% for the three months ended June 30, 2016.

Same Home Net Operating Income increased by 8.1%, supported by Core Rental Revenue growth of 4.8%, a decrease in Core Operating Expenses of (0.8%) and an occupancy rate of 95.1%.

Achieved renewal, replacement and blended rent growth rates of 5.2%, 6.1% and 5.5%, respectively, for the Same Home cohort.

Entered into a $675.0 million revolving credit facility.

“Starwood Waypoint Homes had a very active second quarter, investing nearly $1 billion in asset acquisitions, highlighted by our GI Portfolio purchase of 3,106 single-family homes.  This portfolio was an exceptional opportunity for Starwood Waypoint to further deepen its footprint within existing markets, including high-growth California,” stated Fred Tuomi, the Company’s CEO.  “We delivered another strong-performing quarter with Same Home NOI growth of 8.1% while achieving a Same Home Core Net Operating Income margin of 64.6%. The 2017 leasing season is demonstrating continued favorable fundamentals which positions us well for the balance of the year.”

Second Quarter 2017 Operating Results

Total revenues were $154.4 million for the three months ended June 30, 2017, and net loss attributable to common shareholders was $1.1 million, or $0.01 per share for the three months ended June 30, 2017, driven by depreciation and amortization expense.

NAREIT FFO was $39.5 million for the three months ended June 30, 2017, or $0.32 per share, and Core FFO was $54.9 million, or $0.45 per share. NAREIT FFO and Core FFO are common supplemental measures of operating performance for a REIT, and the Company believes both are useful to investors as a complement to GAAP measures because they facilitate an understanding of the operating performance of the Company’s properties.

 

 

1

 


 

 

Same Home Results

For the Company’s Same Home portfolio of 27,713 homes, revenue, operating expenses and NOI were $136.0 million, $52.4 million and $83.6 million, respectively, for the three months ended June 30, 2017.  Year-over-year Same Home revenue and expense growth were impacted by the implementation of a third-party utility billing service provider during the third quarter 2016, whereby water, sewer and trash services are now held in the Company’s name during resident occupancy and subsequently billed-back to the resident; this had the effect of increasing both revenue growth and expense growth for both the three and six months ended June 30, 2017.  Core Rental Revenue and Core Property Operating Expense measures reflect the net effect of these utility reimbursements, as well as other chargebacks.  Core Revenue growth for the quarter was 4.8% with Core Expense decreasing by (0.8%). Same Home Core NOI margin for the three months ended June 30, 2017 and June 30, 2016 were 64.6% and 62.6%, respectively. The table below summarizes Same Home operating results.

Same Home

Q2 Results

Homes as of June 30, 2017

27,713

Occupancy as of June 30, 2017

95.1%

Revenue/Core Revenue Growth (June 30, 2017 as compared to June 30, 2016)

5.6%/4.8%

Operating Expense/Core Expense Growth (June 30, 2017 as compared to June 30, 2016)

1.9%/(0.8%)

NOI Growth (June 30, 2017 as compared to June 30, 2016)

8.1%

NOI/Core NOI Margin

61.5%/64.6%

Investments

During the three months ended June 30, 2017, the Company acquired 3,661 homes for an aggregate total investment of approximately $959.0 million, or approximately $262,000 per home, including estimated investment costs for renovation, primarily driven by the GI Portfolio acquisition of 3,106 homes.  The Company sold 999 single-family rental homes for gross sales proceeds of $116.2 million, resulting in a gain of approximately $7.8 million, primarily driven by the divestiture of 866 homes in the Atlanta market.

Balance Sheet and Capital Markets Activities 

As of June 30, 2017, the Company had $3.8 billion of debt outstanding and approximately $495.0 million of undrawn commitments on its credit facilities.  The Company’s outstanding debt balance is inclusive of the remaining term loan debt assumed in connection with the GI Portfolio acquisition. During the quarter, the Company fully extinguished its SWAY 2014-1 securitization obligation.

In April 2017, the Company finalized a $675.0 million revolving credit facility, replacing two secured facilities originated prior to the merger between Colony American Homes and Starwood Waypoint Residential Trust.  The Company entered into an at-the-market (ATM) sales agreement under which it may sell up to $300.0 million of its common shares in amounts and times to be determined by the Company.

In June 2017, the Company completed a follow-on equity offering of approximately $918.9 million, consisting of approximately $522.3 million primary shares sold by the Company and approximately $396.6 million in secondary shares sold by certain selling shareholders.  The primary uses of proceeds were the acquisition of a portfolio of 3,106 single-family rental homes from Waypoint/GI Venture, LLC, along with the repayment of certain of the Company’s existing indebtedness and for general corporate purposes.  The Company did not receive any of the proceeds from the sale of the common shares by the selling shareholders.  

On August 1, 2017, the Board declared a dividend of $0.22 per common share for the third quarter of 2017, which will be paid on October 13, 2017 to shareholders of record on September 29, 2017.

 

 

2

 


 

Full Year 2017 Financial Guidance

The table below provides the Company’s updated 2017 full-year Core FFO per share range, Same Home revenue and growth assumptions, and relevant operating metrics.

2017 Guidance

Core FFO/Share

$1.85 - $1.90

Same Home Revenue Growth (1)

4 – 5%

Same Home Expense Growth (1)

2 – 3%

Same Home Core NOI Margin

64 – 65%

Same Home Occupancy

95 – 96%

Same Home Turnover

35 – 37%

The Company does not provide forward-looking guidance for certain financial measures on a GAAP basis because it is unable to reasonably predict certain items contained in the GAAP measures, including one-time and infrequent items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, discontinued operations, share-based compensation and other items not reflective of the Company's ongoing operations.

This outlook is based on a number of assumptions, many of which are outside the Company’s control and all of which are subject to change. This outlook reflects the Company’s expectations on (1) existing investments and (2) yield on incremental investments inclusive of the Company’s existing pipeline. All guidance is based on current expectations of future economic conditions and the judgment of the Company’s management team.  Please refer to the Forward Looking Statements disclosure.

Second Quarter 2017 Conference Call

A conference call is scheduled on Thursday, August 10, 2017, at 11:00 a.m. Eastern Time to discuss the Company’s financial results for the three months ended June 30, 2017. The domestic dial-in number is 1-877-407-9039 (for U.S. and Canada) and the international dial-in number is 1-201-689-8470 (passcode not required). An audio webcast may be accessed at www.starwoodwaypoint.com in the investor relations section. A replay of the call will be available through September 10, 2017 and can be accessed by calling 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (international), replay pin number 13666421, or by using the link at www.starwoodwaypoint.com, in the investor relations section. 

About Starwood Waypoint Homes

Starwood Waypoint Homes (NYSE: SFR) is one of the largest publicly traded owners and operators of single-family rental homes in the United States. Starwood Waypoint Homes acquires, renovates, leases, maintains and manages single-family homes in markets that exhibit favorable demographics and long-term economic trends, as well as strengthening demand for rental properties. Starwood Waypoint Homes is building its business upon a foundation of respect for its residents and the communities in which it operates. Additional information can be found at www.starwoodwaypoint.com.

Additional information 

A copy of the Second Quarter 2017 Supplemental Information Package (“Q2 2017 Supplement”) and this press release are available on the Company’s website at www.starwoodwaypoint.com.

 

(1) Growth rates presented exclude the impact of resident utility billing revenue and associated utility chargeback expenses as a result of the SWH utility chargeback transition beginning in Q3 2016, whereby water, sewer and trash services are held in the Company’s name during resident occupancy and subsequently billed back to the resident.

 

3

 


 

 

Notice Regarding Non-GAAP Financial Measures

This press release and the Q2 2017 Supplement contain and may refer to certain non-GAAP financial measures and terms that management believes are helpful in understanding our business, as further set forth in the definitions, explanations and reconciliations of each non-GAAP financial measure to its most comparable GAAP financial measures included in the Appendix. These measures and terms are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should be read together with the most comparable GAAP measures.

Forward-Looking Statements

Certain statements in this press release and the quarterly supplement/presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and 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. The Company’s ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company’s 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 the Company’s business, financial condition, liquidity, results of operations and prospects, as well as the Company’s ability to make distributions to its shareholders, include, but are not limited to: the factors referenced in the Company’s Annual Report on Form 10-K; unanticipated increases in financing and other costs, including a rise in interest rates; the availability, terms and the Company’s ability to effectively deploy short-term and long-term capital; the possibility that unexpected liabilities may arise from the Company’s merger (the “Merger”) with Colony American Homes (“CAH”), including the outcome of any legal proceedings that have been or may be instituted against the Company, CAH or others in connection with the Merger and the associated transactions; changes in the Company’s business and growth strategies; the Company’s ability to hire and retain highly skilled managerial, investment, financial and operational personnel; 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 single-family residential 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 the Company’s investment objectives and business and growth strategies; the Company’s ability to convert the properties it acquires into rental homes generating attractive returns and to effectively control the timing and costs relating to the renovation and operation of the properties; the Company’s ability to lease or re-lease its 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; the Company’s ability to effectively manage its portfolio of rental homes; the concentration of credit risks to which the Company is exposed; the rates of default or decreased recovery rates on the Company’s target assets; the adequacy of the Company’s cash reserves and working capital; potential conflicts of interest with Starwood Capital Group and its affiliates and managed investment activities; the timing of cash flows, if any, from the Company’s investments; the Company’s expected leverage; financial and operating covenants contained in the Company’s credit facilities and securitizations that could restrict its business and investment activities; effects of derivative and hedging transactions; the Company’s ability to maintain effective internal controls as required by the Sarbanes-Oxley Act of 2002 and to comply with other public company regulatory requirements; the Company’s ability to maintain its exemption from registration as an investment company under the Investment Company Act of 1940, as amended; actions and initiatives of the U.S., state and municipal governments and changes to governments’ 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 the Company’s business and its ability to satisfy complex rules in order for the Company and, if applicable, certain of its subsidiaries to qualify as a REIT for U.S. federal income tax purposes and the ability of certain of the Company’s subsidiaries to qualify as taxable REIT subsidiaries for U.S. federal income tax purposes, and the Company’s ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; and estimates relating to the Company’s ability to make distributions to its shareholders in the future.

You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in the reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. Except as required by law, the Company is under no duty to, and the Company does not intend to, update any of the forward-looking statements appearing herein, whether as a result of new information, future events or otherwise.

 

4

 


 

Consolidated Financials

 

Balance Sheet (Unaudited)

As of June 30, 2017

Dollars in thousands

 

Assets

 

 

 

 

Liabilities

 

 

 

Investments in real estate properties:

 

 

 

 

Accounts payable and accrued expenses

$

115,799

 

Land and land improvements

$

1,847,410

 

 

Resident prepaid rent and security deposits

 

65,253

 

Buildings and building improvements

 

4,930,542

 

 

Revolving credit facilities

 

180,000

 

Furniture, fixtures and equipment

 

159,196

 

 

Secured term loan

 

450,000

 

Total investments in real estate properties

 

6,937,148

 

 

Mortgage loans, net

 

2,689,478

 

Accumulated depreciation

 

(447,600

)

 

Convertible senior notes, net

 

521,674

 

Investments in real estate properties, net

 

6,489,548

 

 

Liabilities related to assets held for sale

 

533

 

 

 

 

 

 

Other liabilities

 

5,697

 

 

 

 

 

 

Total liabilities

 

4,028,434

 

Real estate held for sale, net

 

144,070

 

 

Equity

 

 

 

Cash and cash equivalents

 

174,407

 

 

Common shares, at par

 

1,277

 

Restricted cash

 

129,326

 

 

Additional paid-in capital

 

3,625,423

 

Investments in unconsolidated joint ventures

 

33,709

 

 

Accumulated deficit

 

(388,255

)

Asset-backed securitization certificates

 

114,550

 

 

Accumulated other comprehensive income

 

18,555

 

Assets held for sale

 

26,271

 

 

Total shareholders' equity

 

3,257,000

 

Goodwill

 

260,230

 

 

Non-controlling interests

 

185,525

 

Other assets, net

 

98,848

 

 

Total equity

 

3,442,525

 

Total assets

$

7,470,959

 

 

Total liabilities and equity

$

7,470,959

 

 

 

 

 

5

 


 

Statement of Operations (Unaudited)

Dollars in thousands

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016 (1)

 

 

2017

 

 

2016 (1)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

141,641

 

 

$

133,081

 

 

$

280,894

 

 

$

262,738

 

Other property income

 

 

9,953

 

 

 

7,773

 

 

 

18,966

 

 

 

13,492

 

Other income

 

 

2,780

 

 

 

2,979

 

 

 

5,554

 

 

 

5,869

 

Total revenues

 

 

154,374

 

 

 

143,833

 

 

 

305,414

 

 

 

282,099

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating and maintenance

 

 

21,718

 

 

 

21,940

 

 

 

40,664

 

 

 

38,678

 

Real estate taxes, insurance and HOA costs

 

 

29,411

 

 

 

27,921

 

 

 

57,710

 

 

 

55,240

 

Property management

 

 

9,242

 

 

 

10,131

 

 

 

18,892

 

 

 

20,147

 

Interest expense

 

 

37,141

 

 

 

37,984

 

 

 

76,140

 

 

 

75,441

 

Depreciation and amortization

 

 

48,114

 

 

 

44,844

 

 

 

94,299

 

 

 

88,474

 

Impairment of real estate assets

 

 

214

 

 

 

144

 

 

 

657

 

 

 

174

 

Share-based compensation

 

 

1,636

 

 

 

711

 

 

 

3,197

 

 

 

1,098

 

General and administrative

 

 

10,945

 

 

 

12,110

 

 

 

21,785

 

 

 

28,476

 

Transaction-related

 

 

65

 

 

 

5,073

 

 

 

65

 

 

 

28,555

 

Total expenses

 

 

158,486

 

 

 

160,858

 

 

 

313,409

 

 

 

336,283

 

Net gain on sales of real estate

 

 

7,809

 

 

 

527

 

 

 

8,487

 

 

 

1,911

 

Equity in income from unconsolidated joint ventures

 

 

190

 

 

 

157

 

 

 

370

 

 

 

354

 

Loss on extinguishment of debt

 

 

(3,537

)

 

 

-

 

 

 

(10,690

)

 

 

-

 

Other expense, net

 

 

(1,112

)

 

 

(2,925

)

 

 

(2,750

)

 

 

(3,650

)

Loss before income taxes

 

 

(762

)

 

 

(19,266

)

 

 

(12,578

)

 

 

(55,569

)

Income tax expense

 

 

179

 

 

 

81

 

 

 

336

 

 

 

326

 

Net loss from continuing operations

 

 

(941

)

 

 

(19,347

)

 

 

(12,914

)

 

 

(55,895

)

(Loss) income from discontinued operations, net

 

 

(175

)

 

 

2,684

 

 

 

(221

)

 

 

(7,817

)

Net loss

 

 

(1,116

)

 

 

(16,663

)

 

 

(13,135

)

 

 

(63,712

)

Net loss attributable to non-controlling interests

 

 

61

 

 

 

988

 

 

 

739

 

 

 

3,838

 

Net loss attributable to common shareholders

 

$

(1,055

)

 

$

(15,675

)

 

$

(12,396

)

 

$

(59,874

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(0.01

)

 

$

(0.15

)

 

$

(0.11

)

 

$

(0.59

)

Weighted average common shares outstanding

 

 

116,003,434

 

 

 

101,486,847

 

 

 

110,330,186

 

 

 

101,776,801

 

 

 

 

(1) Certain line items have been reclassified to conform to the current period groupings.  See Form 10-Q for the period ended June 30, 2017 for further detail.

6

 


 

Reconciliation to FFO and Core FFO

Dollars in thousands, except share and per share data

 

 

 

 

Three Months Ended June 30, 2017

 

 

Six Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net loss to NAREIT FFO

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(1,055

)

 

$

(12,396

)

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization on real estate assets

 

 

48,047

 

 

 

94,164

 

 

 

Impairment of real estate assets

 

 

214

 

 

 

657

 

 

 

Net gain on sale of real estate

 

 

(7,809

)

 

 

(8,487

)

 

 

Non-controlling interests

 

 

(61

)

 

 

(739

)

 

 

Discontinued operations, net (NPL/REO)

 

 

175

 

 

 

221

 

 

 

NAREIT FFO

 

$

39,511

 

 

$

73,420

 

 

 

NAREIT FFO per share (1)

 

$

0.32

 

 

$

0.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for Core FFO

 

 

 

 

 

 

 

 

 

 

NAREIT FFO

 

$

39,511

 

 

$

73,420

 

 

 

Amortization of deferred financing costs, debt discounts, non-cash interest expense from interest rate caps and loss on extinguishment of debt

 

 

13,695

 

 

 

31,025

 

 

 

Share-based compensation

 

 

1,636

 

 

 

3,197

 

 

 

Transaction-related expenses

 

 

65

 

 

 

65

 

 

 

Core FFO

 

$

54,907

 

 

$

107,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per share (1)

 

$

0.45

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for Core AFFO

 

 

 

 

 

 

 

 

 

 

Core FFO

 

$

54,907

 

 

$

107,707

 

 

 

Recurring capital expenditures

 

 

(11,189

)

 

 

(21,463

)

 

 

Capitalized leasing (2)

 

 

(2,289

)

 

 

(4,442

)

 

 

Core AFFO

 

$

41,429

 

 

$

81,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core AFFO per share (1)

 

$

0.34

 

 

$

0.70

 

 

 

 

 

(1) Weighted-average shares totaled 121,904,615 and 116,584,395 for the three and six-month periods ended June 30, 2017, respectively.  A reconciliation of outstanding shares is included in the Appendix.

(2) Comprised of $2.1 million of certain personnel costs and $0.2 million of third-party commissions, and $4.0 million of certain personnel costs and $0.4 million of third-party commissions for the three and six month periods ending June 30, 2017, respectively.

7

 


 

Contacts:

For Starwood Waypoint Homes:

Investor Relations

Phone: 480-800-3490

IR@colonystarwood.com

Or

Media Relations

Jason Chudoba, 646-277-1249

Jason.chudoba@icrinc.com

 

8

 

(Back To Top)

Section 3: EX-99.2 (EX-99.2)

sfr-ex992_96.htm

Exhibit 99.2

 

Starwood Waypoint Homes DRAFT Earnings Release & Supplement Second Quarter 2017 Rent Easy. Live Well.

 

 

 


Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section I:

Section II:

Section III:

Section IV:

Section V:

Appendix:

 

 

Earnings Release

Consolidated Financials

Selected Additional Information

Same Home Information

Earnings Guidance

Definitions and Reconciliations

 

 

2

9

15

19

32

34

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 


 

Nashville, TN

      I. Earnings Release

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

2

 


Earnings Release

 

STARWOOD WAYPOINT HOMES ANNOUNCES

SECOND QUARTER 2017 FINANCIAL AND OPERATING RESULTS

Scottsdale, Arizona (August 9, 2017) – Starwood Waypoint Homes (NYSE: SFR) (“SWH” or the “Company”), a leading single-family rental real estate investment trust (“REIT”), today announced operating and financial results for the three and six months ended June 30, 2017. Capitalized terms used herein have the meanings set forth in the Appendix to the Supplemental Report of financial and operating information posted on the Company’s website.

Second Quarter 2017 Highlights

Closed GI Portfolio acquisition of 3,106 homes increasing existing market densities, including high-growth California submarkets.

Completed a $918.9 million follow-on equity offering ($522.3 million primary and $396.6 million secondary).

Total revenues increased 7.3% to $154.4 million for the three months ended June 30, 2017 from $143.8 for the three months ended June 30, 2016.

Net loss attributable to common shareholders of $1.1 million or $0.01 per basic and diluted share for the three months ended June 30, 2017, compared to a $15.7 million net loss or a $0.15 loss per basic and diluted share for the three months ended June 30, 2016.

Core Funds from Operations (“Core FFO”) was $54.9 million or $0.45 per share during the three months ended June 30, 2017.

Core Net Operating Income (“Core NOI”) margin for Same Home properties increased to 64.6% for the three months ended June 30, 2017, compared to 62.6% for the three months ended June 30, 2016.

Same Home Net Operating Income increased by 8.1%, supported by Core Rental Revenue growth of 4.8%, a decrease in Core Operating Expenses of (0.8%) and an occupancy rate of 95.1%.

Achieved renewal, replacement and blended rent growth rates of 5.2%, 6.1% and 5.5%, respectively, for the Same Home cohort.

Entered into a $675.0 million revolving credit facility.

“Starwood Waypoint Homes had a very active second quarter, investing nearly $1 billion in accretive asset acquisitions, highlighted by our GI Portfolio purchase of 3,106 single-family homes.  This portfolio was an exceptional opportunity for Starwood Waypoint to further deepen its footprint within existing markets, including high-growth California,” stated Fred Tuomi, the Company’s CEO.  “We delivered another strong-performing quarter with Same Home NOI growth of 8.1% while achieving a Same Home Core Net Operating Income margin of 64.6%. The 2017 leasing season is demonstrating continued favorable fundamentals which positions us well for the balance of the year.”

 

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

3

 


Earnings Release (Continued)

 

 

Second Quarter 2017 Operating Results

Total revenues were $154.4 million for the three months ended June 30, 2017, and net loss attributable to common shareholders was $1.1 million, or $0.01 per share for the three months ended June 30, 2017, driven by depreciation and amortization expense.

NAREIT FFO was $39.5 million for the three months ended June 30, 2017, or $0.32 per share, and Core FFO was $54.9 million, or $0.45 per share. NAREIT FFO and Core FFO are common supplemental measures of operating performance for a REIT, and the Company believes both are useful to investors as a complement to GAAP measures because they facilitate an understanding of the operating performance of the Company’s properties.

 

Same Home Results

For the Company’s Same Home portfolio of 27,713 homes, revenue, operating expenses and NOI were $136.0 million, $52.4 million and $83.6 million, respectively, for the three months ended June 30, 2017.  Year-over-year Same Home revenue and expense growth were impacted by the implementation of a third-party utility billing service provider during the third quarter 2016, whereby water, sewer and trash services are now held in the Company’s name during resident occupancy and subsequently billed-back to the resident; this had the effect of increasing both revenue growth and expense growth for both the three and six months ended June 30, 2017.  Core Rental Revenue and Core Property Operating Expense measures reflect the net effect of these utility reimbursements, as well as other chargebacks.  Core Revenue growth for the quarter was 4.8% with Core Expense decreasing by (0.8%). Same Home Core NOI margin for the three months ended June 30, 2017 and June 30, 2016 were 64.6% and 62.6%, respectively. The table below summarizes Same Home operating results.

Same Home

Q2 Results

Homes as of June 30, 2017

27,713

Occupancy as of June 30, 2017

95.1%

Revenue/Core Revenue Growth (June 30, 2017 as compared to June 30, 2016)

5.6%/4.8%

Operating Expense/Core Expense Growth (June 30, 2017 as compared to June 30, 2016)

1.9%/(0.8%)

NOI Growth (June 30, 2017 as compared to June 30, 2016)

8.1%

NOI/Core NOI Margin

61.5%/64.6%

 

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

4

 


Earnings Release (Continued)

 

Investments

During the three months ended June 30, 2017, the Company acquired 3,661 homes for an aggregate total investment of approximately $959.0 million, or approximately $262,000 per home, including estimated investment costs for renovation, primarily driven by the GI Portfolio acquisition of 3,106 homes.  The Company sold 999 single-family rental homes for gross sales proceeds of $116.2 million, resulting in a gain of approximately $7.8 million, primarily driven by the divestiture of 866 homes in the Atlanta market.

Balance Sheet and Capital Markets Activities 

As of June 30, 2017, the Company had $3.8 billion of debt outstanding and approximately $495.0 million of undrawn commitments on its credit facilities.  The Company’s outstanding debt balance is inclusive of the remaining term loan debt assumed in connection with the GI Portfolio acquisition. During the quarter, the Company fully extinguished its SWAY 2014-1 securitization obligation.

In April 2017, the Company finalized a $675.0 million revolving credit facility, replacing two secured facilities originated prior to the merger between Colony American Homes and Starwood Waypoint Residential Trust.  The Company entered into an at-the-market (ATM) sales agreement under which it may sell up to $300.0 million of its common shares in amounts and times to be determined by the Company.

In June 2017, the Company completed a follow-on equity offering of approximately $918.9 million, consisting of approximately $522.3 million primary shares sold by the Company and approximately $396.6 million in secondary shares sold by certain selling shareholders.  The primary uses of proceeds were the acquisition of a portfolio of 3,106 single-family rental homes from Waypoint/GI Venture, LLC, along with the repayment of certain of the Company’s existing indebtedness and for general corporate purposes.  The Company did not receive any of the proceeds from the sale of the common shares by the selling shareholders.

On August 1, 2017, the Board declared a dividend of $0.22 per common share for the third quarter of 2017, which will be paid on October 13, 2017 to shareholders of record on September 29, 2017.

 

 

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

5

 


Earnings Release (Continued)

 

Full Year 2017 Financial Guidance

The table below provides the Company’s updated 2017 full-year Core FFO per share range, Same Home revenue and growth assumptions, and relevant operating metrics.

The Company does not provide forward-looking guidance for certain financial measures on a GAAP basis because it is unable to reasonably predict certain items contained in the GAAP measures, including one-time and infrequent items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, discontinued operations, share-based compensation and other items not reflective of the Company's ongoing operations.

2017 Guidance

Core FFO/Share

$1.85 - $1.90

Same Home Revenue Growth (1)

4 – 5%

Same Home Expense Growth (1)

2 – 3%

Same Home Core NOI Margin

64 – 65%

Same Home Occupancy

95 – 96%

Same Home Turnover

35 – 37%

This outlook is based on a number of assumptions, many of which are outside the Company’s control and all of which are subject to change. This outlook reflects the Company’s expectations on (1) existing investments and (2) yield on incremental investments inclusive of the Company’s existing pipeline. All guidance is based on current expectations of future economic conditions and the judgment of the Company’s management team.  Please refer to the Forward Looking Statements disclosure.

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

(1) Growth rates presented exclude the impact of resident utility billing revenue and associated utility chargeback expenses as a result of the SWH utility chargeback transition beginning in Q3 2016, whereby water, sewer and trash services are held in the Company’s name during resident occupancy and subsequently billed back to the resident.

 

6

 


Earnings Release (Continued)

 

Second Quarter 2017 Conference Call

A conference call is scheduled on Thursday, August 10, 2017, at 11:00 a.m. Eastern Time to discuss the Company’s financial results for the three months ended June 30, 2017. The domestic dial-in number is 1-877-407-9039 (for U.S. and Canada) and the international dial-in number is 1-201-689-8470 (passcode not required). An audio webcast may be accessed at www.starwoodwaypoint.com in the investor relations section. A replay of the call will be available through September 10, 2017 and can be accessed by calling 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (international), replay pin number 13666421, or by using the link at www.starwoodwaypoint.com, in the investor relations section. 

About Starwood Waypoint Homes

Starwood Waypoint Homes (NYSE: SFR) is one of the largest publicly traded owners and operators of single-family rental homes in the United States. Starwood Waypoint Homes acquires, renovates, leases, maintains and manages single-family homes in markets that exhibit favorable demographics and long-term economic trends, as well as strengthening demand for rental properties. Starwood Waypoint Homes is building its business upon a foundation of respect for its residents and the communities in which it operates. Additional information can be found at www.starwoodwaypoint.com.

Additional information 

A copy of the Second Quarter 2017 Supplemental Information Package (“Q2 2017 Supplement”) and this press release are available on the Company’s website at www.starwoodwaypoint.com.  

Notice Regarding Non-GAAP Financial Measures

This press release and the Q2 2017 Supplement contain and may refer to certain non-GAAP financial measures and terms that management believes are helpful in understanding our business, as further set forth in the definitions, explanations and reconciliations of each non-GAAP financial measure to its most comparable GAAP financial measures included in the Appendix. These measures and terms are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should be read together with the most comparable GAAP measures.

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

 

7

 


Earnings Release (Continued)

 

Forward-Looking Statements

Certain statements in this press release and the quarterly supplement/presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and 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. The Company’s ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company’s 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 the Company’s business, financial condition, liquidity, results of operations and prospects, as well as the Company’s ability to make distributions to its shareholders, include, but are not limited to: the factors referenced in the Company’s Annual Report on Form 10-K; unanticipated increases in financing and other costs, including a rise in interest rates; the availability, terms and the Company’s ability to effectively deploy short-term and long-term capital; the possibility that unexpected liabilities may arise from the Company’s merger (the “Merger”) with Colony American Homes (“CAH”), including the outcome of any legal proceedings that have been or may be instituted against the Company, CAH or others in connection with the Merger and the associated transactions; changes in the Company’s business and growth strategies; the Company’s ability to hire and retain highly skilled managerial, investment, financial and operational personnel; 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 single-family residential 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 the Company’s investment objectives and business and growth strategies; the Company’s ability to convert the properties it acquires into rental homes generating attractive returns and to effectively control the timing and costs relating to the renovation and operation of the properties; the Company’s ability to lease or re-lease its 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; the Company’s ability to effectively manage its portfolio of rental homes; the concentration of credit risks to which the Company is exposed; the rates of default or decreased recovery rates on the Company’s target assets; the adequacy of the Company’s cash reserves and working capital; potential conflicts of interest with Starwood Capital Group and its affiliates and managed investment activities; the timing of cash flows, if any, from the Company’s investments; the Company’s expected leverage; financial and operating covenants contained in the Company’s credit facilities and securitizations that could restrict its business and investment activities; effects of derivative and hedging transactions; the Company’s ability to maintain effective internal controls as required by the Sarbanes-Oxley Act of 2002 and to comply with other public company regulatory requirements; the Company’s ability to maintain its exemption from registration as an investment company under the Investment Company Act of 1940, as amended; actions and initiatives of the U.S., state and municipal governments and changes to governments’ 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 the Company’s business and its ability to satisfy complex rules in order for the Company and, if applicable, certain of its subsidiaries to qualify as a REIT for U.S. federal income tax purposes and the ability of certain of the Company’s subsidiaries to qualify as taxable REIT subsidiaries for U.S. federal income tax purposes, and the Company’s ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; and estimates relating to the Company’s ability to make distributions to its shareholders in the future.

You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in the reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. Except as required by law, the Company is under no duty to, and the Company does not intend to, update any of the forward-looking statements appearing herein, whether as a result of new information, future events or otherwise.

 

Contacts:

 

 

 

Investor Relations

Media Relations

Phone: 480-800-3490

Email: IR@colonystarwood.com                                    

Jason Chudoba Phone: 646-277-1249

Email: Jason.chudoba@icrinc.com

 

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

 

8

 


 

 

Riverside, CA

      II. Consolidated Financials

 

 

9

 


Balance Sheet (Unaudited)

As of June 30, 2017

 

Dollars in thousands

 

 

Assets

 

 

 

 

Liabilities

 

 

 

Investments in real estate properties:

 

 

 

 

Accounts payable and accrued expenses

$

115,799

 

Land and land improvements

$

1,847,410

 

 

Resident prepaid rent and security deposits

 

65,253

 

Buildings and building improvements

 

4,930,542

 

 

Revolving credit facilities

 

180,000

 

Furniture, fixtures and equipment

 

159,196

 

 

Secured term loan

 

450,000

 

Total investments in real estate properties

 

6,937,148

 

 

Mortgage loans, net

 

2,689,478

 

Accumulated depreciation

 

(447,600

)

 

Convertible senior notes, net

 

521,674

 

Investments in real estate properties, net

 

6,489,548

 

 

Liabilities related to assets held for sale

 

533

 

 

 

 

 

 

Other liabilities

 

5,697

 

 

 

 

 

 

Total liabilities

 

4,028,434

 

Real estate held for sale, net

 

144,070

 

 

Equity

 

 

 

Cash and cash equivalents

 

174,407

 

 

Common shares, at par

 

1,277

 

Restricted cash

 

129,326

 

 

Additional paid-in capital

 

3,625,423

 

Investments in unconsolidated joint ventures

 

33,709

 

 

Accumulated deficit

 

(388,255

)

Asset-backed securitization certificates

 

114,550

 

 

Accumulated other comprehensive income

 

18,555

 

Assets held for sale

 

26,271

 

 

Total shareholders' equity

 

3,257,000

 

Goodwill

 

260,230

 

 

Non-controlling interests

 

185,525

 

Other assets, net

 

98,848

 

 

Total equity

 

3,442,525

 

Total assets

$

7,470,959

 

 

Total liabilities and equity

$

7,470,959

 

 

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

 

10

 


Statements of Operations (Unaudited)

 

Dollars in thousands

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016 (1)

 

 

2017

 

 

2016 (1)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

141,641

 

 

$

133,081

 

 

$

280,894

 

 

$

262,738

 

Other property income

 

 

9,953

 

 

 

7,773

 

 

 

18,966

 

 

 

13,492

 

Other income

 

 

2,780

 

 

 

2,979

 

 

 

5,554

 

 

 

5,869

 

Total revenues

 

 

154,374

 

 

 

143,833

 

 

 

305,414

 

 

 

282,099

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating and maintenance

 

 

21,718

 

 

 

21,940

 

 

 

40,664

 

 

 

38,678

 

Real estate taxes, insurance and HOA costs

 

 

29,411

 

 

 

27,921

 

 

 

57,710

 

 

 

55,240

 

Property management

 

 

9,242

 

 

 

10,131

 

 

 

18,892

 

 

 

20,147

 

Interest expense

 

 

37,141

 

 

 

37,984

 

 

 

76,140

 

 

 

75,441

 

Depreciation and amortization

 

 

48,114

 

 

 

44,844

 

 

 

94,299

 

 

 

88,474

 

Impairment of real estate assets

 

 

214

 

 

 

144

 

 

 

657

 

 

 

174

 

Share-based compensation

 

 

1,636

 

 

 

711

 

 

 

3,197

 

 

 

1,098

 

General and administrative

 

 

10,945

 

 

 

12,110

 

 

 

21,785

 

 

 

28,476

 

Transaction-related

 

 

65

 

 

 

5,073

 

 

 

65

 

 

 

28,555

 

Total expenses

 

 

158,486

 

 

 

160,858

 

 

 

313,409

 

 

 

336,283

 

Net gain on sales of real estate

 

 

7,809

 

 

 

527

 

 

 

8,487

 

 

 

1,911

 

Equity in income from unconsolidated joint ventures

 

 

190

 

 

 

157

 

 

 

370

 

 

 

354

 

Loss on extinguishment of debt

 

 

(3,537

)

 

 

-

 

 

 

(10,690

)

 

 

-

 

Other expense, net

 

 

(1,112

)

 

 

(2,925

)

 

 

(2,750

)

 

 

(3,650

)

Loss before income taxes

 

 

(762

)

 

 

(19,266

)

 

 

(12,578

)

 

 

(55,569

)

Income tax expense

 

 

179

 

 

 

81

 

 

 

336

 

 

 

326

 

Net loss from continuing operations

 

 

(941

)

 

 

(19,347

)

 

 

(12,914

)

 

 

(55,895

)

(Loss) income from discontinued operations, net

 

 

(175

)

 

 

2,684

 

 

 

(221

)

 

 

(7,817

)

Net loss

 

 

(1,116

)

 

 

(16,663

)

 

 

(13,135

)

 

 

(63,712

)

Net loss attributable to non-controlling interests

 

 

61

 

 

 

988

 

 

 

739

 

 

 

3,838

 

Net loss attributable to common shareholders

 

$

(1,055

)

 

$

(15,675

)

 

$

(12,396

)

 

$

(59,874

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(0.01

)

 

$

(0.15

)

 

$

(0.11

)

 

$

(0.59

)

Weighted average common shares outstanding

 

 

116,003,434

 

 

 

101,486,847

 

 

 

110,330,186

 

 

 

101,776,801

 

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

(1)  Certain line items have been reclassified to conform to the current period groupings.  See Form 10-Q for the period ended June 30, 2017 for further detail.

11

 


Reconciliation to FFO, Core FFO and Core AFFO

 

Dollars in thousands, except share and per share data

 

 

 

Three Months Ended June 30, 2017

 

 

Six Months Ended June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net loss to NAREIT FFO

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(1,055

)

 

$

(12,396

)

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization on real estate assets

 

 

48,047

 

 

 

94,164

 

 

 

Impairment of real estate assets

 

 

214

 

 

 

657

 

 

 

Net gain on sale of real estate

 

 

(7,809

)

 

 

(8,487

)

 

 

Non-controlling interests

 

 

(61

)

 

 

(739

)

 

 

Discontinued operations, net (NPL/REO)

 

 

175

 

 

 

221

 

 

 

NAREIT FFO

 

$

39,511

 

 

$

73,420

 

 

 

NAREIT FFO per share (1)

 

$

0.32

 

 

$

0.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for Core FFO

 

 

 

 

 

 

 

 

 

 

NAREIT FFO

 

$

39,511

 

 

$

73,420

 

 

 

Amortization of deferred financing costs, debt discounts, non-cash interest expense from interest rate caps and loss on extinguishment of debt

 

 

13,695

 

 

 

31,025

 

 

 

Share-based compensation

 

 

1,636

 

 

 

3,197

 

 

 

Transaction-related expenses

 

 

65

 

 

 

65

 

 

 

Core FFO

 

$

54,907

 

 

$

107,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per share (1)

 

$

0.45

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments for Core AFFO

 

 

 

 

 

 

 

 

 

 

Core FFO

 

$

54,907

 

 

$

107,707

 

 

 

Recurring capital expenditures

 

 

(11,189

)

 

 

(21,463

)

 

 

Capitalized leasing (2)

 

 

(2,289

)

 

 

(4,442

)

 

 

Core AFFO

 

$

41,429

 

 

$

81,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core AFFO per share (1)

 

$

0.34

 

 

$

0.70

 

 

 

 

 

Please see the Appendix for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2017 unless otherwise indicated.

 

(1) Weighted-average shares totaled 121,904,615 and 116,584,395 for the three and six-month periods ended June 30, 2017, respectively.  A reconciliation of outstanding shares is included in the Appendix.

(2) Comprised of $2.1 million of certain personnel costs and $0.2 million of third-party commissions, and $4.0 million of certain personnel costs and $0.4 million of third-party commissions for the three and six month periods ending June 30, 2017, respectively.

12

 


NOI by Segment – Quarter-to-Date

Year-over-year comparison

 

Dollars in thousands

 

 

Three months ended June 30, 2017

 

 

Three months ended June 30, 2016 (1)(2)

 

 

 

 

 

 

Same Homes

 

 

Stabilized Homes

 

 

Other Homes

 

 

Total

 

 

Same Homes

 

 

Stabilized Homes

 

 

Other Homes

 

 

Total

 

 

Total Change %

 

Revenues