Press Release

Reven Housing REIT, Inc. Reports Results for Third Quarter 2017

Company Release - 11/9/2017 6:05 AM ET

LA JOLLA, Calif.--(BUSINESS WIRE)-- Reven Housing REIT, Inc. (the “Company”, “Reven Housing”, “RVEN”) (NASDAQ:RVEN), an owner and operator of single-family residential property, today reported financial results for the third quarter ended September 30, 2017.

Third Quarter Highlights

  • Reported net loss of $1.31 million, or $(0.12) per share, as compared to a net loss of $771,243, or $(0.09) per share, in the prior year period.
  • Increased Core FFO to $248,451, or $0.02 per share, from $28,378, or $0.00 per share, due to the acquisition of 228 single-family homes in the last twelve months.
  • Increased rental income by 48.0% to $2.04 million from $1.38 million due to the increase of single family homes in the Company’s portfolio over the last twelve months.
  • Achieved portfolio occupancy of 93.9%.
  • Incurred approximately $2.6 million of storm related damages from Hurricanes Harvey and Irma, with insurance reimbursing approximately $1.65 million of the damage.
  • Acquired one property in July, 2017 for approximately $77,200.

Year-to-Date Highlights

  • Reported net loss of $1.96 million, or $(0.18) per share, compared to a net loss of $1.42 million, or $(0.19) per share, in the prior year period.
  • Increased Core FFO to $424,189, or $0.04 per share, from $137,578, or $0.02 per share, in the prior year period
  • Rental income increased 40.0% year-over-year to $5.81 million primarily due to the acquisition of 228 single family homes over the last twelve months.
  • Acquired 133 single family homes in Atlanta, Georgia, Birmingham Alabama, and Memphis Tennessee for approximately $10.1 million

Chad Carpenter, Chief Executive Officer of Reven Housing REIT, stated, “Our efforts in the third quarter were focused on the continued management of our portfolio and integration of the 133 homes purchased earlier in the year, which increased our portfolio by 25%. While Hurricanes Harvey and Irma presented operational challenges during the quarter, our team is working tirelessly to ensure that our homes are restored as quickly as possible and our tenants are able to return to all affected homes. Our ability to execute on numerous fronts is illustrative of the strong platform Reven is building as we continue to grow our portfolio.”

Third Quarter Financial Results

  • For the third quarter ended September 30, 2017, Reven Housing reported rental income growth of 48.0% to $2.04 million compared to the prior year period. The main driver for the year-over-year increase in rental revenue was due to the increase in the number of homes in the Company’s portfolio to 755, versus 527 homes in the prior year period. As of September 30, 2017, the Company’s portfolio was 93.9% occupied which represents a 20 bps decline from the quarter ended September 30, 2016. If the 25 homes in Jacksonville and Houston were not vacant due to Hurricanes Harvey and Irma, occupancy for the 2017 third quarter would have been 97.2%, representing a 310 bps increase from the quarter ended September 30, 2016.
  • Net operating income (NOI) from rentals was $1.1 million or 54.0% of revenue versus NOI from rentals of $0.74 million or 53.9% of revenue in 2016.
  • Net loss for the third quarter 2017 was $1.31 million, or ($0.12) per share, compared to a net loss of $0.77 million, or ($0.09) per share, in the prior year period. Adjusting for the casualty loss caused by Hurricanes Harvey and Irma, the net loss would have been $329,515 or ($0.03) per share.

Year-to-Date Financial Results

  • For the nine months ended September 30, 2017, total rental income increased 40.0% to $5.81 million, due to the increase in rental homes.
  • Net Operating Income or “NOI” for the first nine months of 2017 was $3.13 million or 53.8% of rental revenue compared to NOI of $2.29 million or 55.1% of rental revenue in the prior year period.
  • Net loss for the nine months ended September 30, 2017 was $1.96 million, or ($0.18) per share, compared to a net loss of $1.42 million, or ($0.19) per share, for the nine months ended September 30, 2016. The decrease in per share loss, while the overall loss was larger, is due to a higher share count associated with the Company’s public offering in 2016. If the casualty loss from Hurricanes Harvey and Irma are removed, the net loss would have been about $1.07 million or ($0.10) per share.

Operations, Acquisitions and Dispositions and Balance Sheet

At the end of the third quarter 2017, Reven Housing REIT owned 755 homes in major metropolitan areas across the southwest and southeast regions of the United States. At quarter-end, the portfolio was 93.9% occupied and had an average monthly rent of $985.00 per month.

The Company acquired one home in the quarter for $77,200 located in Birmingham, Alabama where it owns an additional 68 homes.

As of the end of the third quarter, the Company had $6.9 million in cash on the balance sheet and $26.9 million in notes payable, net. During the quarter, the Company received loans proceeds and issued promissory notes of approximately $2.95 million at a fixed interest rate of 4.5% and a 25-year term. The notes are secured by homes in Georgia and Tennessee.

About Reven Housing REIT, Inc.

Reven Housing REIT, Inc., (NASDAQ: RVEN) engages in the acquisition and ownership of portfolios of occupied single family rental properties in the United States. Reven currently owns and operates single family rental properties in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas.

For more information, please visit http://www.revenhousingreit.com/.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. The ultimate occurrence of events and results referenced in these forward-looking statements is subject to known and unknown risks and uncertainties, many of which are beyond our control. These forward-looking statements are based upon the Company's present intentions and expectations, but the events and results referenced in these statements are not guaranteed to occur. Investors should not place undue reliance upon forward-looking statements. For a discussion of these and other risks facing our business, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and our other filings with the SEC from time to time, which are accessible on the SEC’s website at www.sec.gov.

Investor Relations:
ICR, Inc.
Evelyn Infurna, 203-682-8265
evelyn.infurna@icrinc.com

Source: Reven Housing REIT, Inc.

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