0001468010-19-000031.txt : 20190813 0001468010-19-000031.hdr.sgml : 20190813 20190813161145 ACCESSION NUMBER: 0001468010-19-000031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20190807 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190813 DATE AS OF CHANGE: 20190813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Steadfast Income REIT, Inc. CENTRAL INDEX KEY: 0001468010 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 270351641 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-54674 FILM NUMBER: 191020750 BUSINESS ADDRESS: STREET 1: 18100 VON KARMAN AVE., SUITE 500 CITY: IRVINE STATE: CA ZIP: 92612 BUSINESS PHONE: 949-852-0700 MAIL ADDRESS: STREET 1: 18100 VON KARMAN AVE., SUITE 500 CITY: IRVINE STATE: CA ZIP: 92612 FORMER COMPANY: FORMER CONFORMED NAME: Steadfast REIT, Inc. DATE OF NAME CHANGE: 20100202 FORMER COMPANY: FORMER CONFORMED NAME: Steadfast Secure Income REIT, Inc. DATE OF NAME CHANGE: 20090708 8-K 1 a20190813sirform8-kreerq22.htm 8-K Document


 
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 7, 2019
Steadfast Income REIT, Inc.
(Exact Name of Registrant as Specified in Charter)
Maryland
 
000-54674
 
27-0351641
(State or Other Jurisdiction
 
(Commission File Number)
 
(IRS Employer
of Incorporation)
 
 
 
Identification No.)
18100 Von Karman Avenue, Suite 500
Irvine, California 92612
(Address of Principal Executive Offices, including Zip Code)
Registrant’s telephone number, including area code: (949) 852-0700
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:
 
 
 
 
 
o
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
 
 
o
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
 
 
o
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
 
 
 
o
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: None
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
N/A
N/A
N/A
Indicate by check mark whether the registrant is an emerging growth company 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 13, 2019, Steadfast Income REIT, Inc. (the “Company”) issued an earnings release announcing its financial results for the three and six months ended June 30, 2019. A copy of the earnings release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02, including the related information set forth in the earnings release attached hereto as Exhibit 99.1 and incorporated by reference herein, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by the specific reference in such filing.





Item 8.01
    Other Events.
Distribution Declaration
On August 7, 2019, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day for the period commencing on October 1, 2019, and ending on December 31, 2019. The distributions will be equal to $0.001519 per share of the Company’s common stock per day, which if paid each day over a 365-day period is equivalent to a 6.0% annualized distribution rate based on $9.24 per share of common stock. The distributions for each record date in October 2019, November 2019 and December 2019 will be paid in November 2019, December 2019 and January 2020, respectively. The distributions will be payable to stockholders from legally available funds therefor.




Item 9.01     Financial Statements and Exhibits.
(d) Exhibits.
Exhibits
Description
 
 
 
 
 
 
 
 
99.1






SIGNATURES

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.

 
 
 
STEADFAST INCOME REIT, INC.
 
 
 
 
 
Date:
August 13, 2019
 
By:
/s/ Kevin J. Keating
 
 
 
 
Kevin J. Keating
 
 
 
 
Chief Financial Officer and Treasurer




 EX-99.1 2 ex-991quarterlyxsir6302019.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1



sfincomereitlogoa36.jpg
 
18100 Von Karman Avenue
Suite 500
Irvine, CA 92612
949.852.0700
NEWS RELEASE
Contact:
Jennifer Franklin
Phone:
949.333.1721
Email:
jfranklin@Stiracmg.com
STEADFAST INCOME REIT, INC. ANNOUNCES
RESULTS FOR THE QUARTER ENDED JUNE 30, 2019
Irvine, Calif., August 13, 2019 —Steadfast Income REIT, Inc. (the “Company”) announced today its operating results for the three and six months ended June 30, 2019.
For the three and six months ended June 30, 2019, the Company had total revenues of $28.3 million and $60.3 million compared to $34.1 million and $69.5 million for the three and six months ended June 30, 2018. Net income was $41.9 million and $77.8 million for the three and six months ended June 30, 2019, compared to net (loss) income of $(8.0) million and $65.3 million for the three and six months ended June 30, 2018. Total assets of the Company at June 30, 2019, were $860.3 million, compared to $1.02 billion at December 31, 2018.
The Company’s results of operations compared to the comparable prior year periods were primarily affected by (1) the disposition of three multifamily properties and the contribution of eight multifamily properties to a joint venture in exchange for cash and a proportionate 10% interest in the joint venture during the six months ended June 30, 2018, (2) the acquisition of two multifamily properties during the six months ended June 30, 2018, (3) the disposition of twelve multifamily properties subsequent to June 30, 2018 and (4) and value-enhancement activity completed through June 30, 2019.
Highlights:
The Company:
•
Sold eight multifamily properties with a total of 1,915 apartment homes during the six months ended June 30, 2019 and recognized a gain on sale of $86.9 million.
•
Owned as of June 30, 2019, (1) a multifamily property portfolio of 27 properties comprised of a total of 7,527 apartment homes with an aggregate purchase price of $863.2 million and (2) a 10% ownership interest in a joint venture.
•
Had $278.8 million of fixed rate debt with a weighted-average interest rate of 3.90% and $212.0 million of variable rate debt with a weighted-average interest rate of 4.50% as of June 30, 2019. The weighted average interest rate on the Company's total outstanding debt was 4.16% as of June 30, 2019.

1

•
Funded $5.1 million for improvements to real estate investments for the six months ended June 30, 2019, compared to $4.0 million for the six months ended June 30, 2018.
•
Experienced a decrease in net operating income (“NOI”) from $17.2 million and $36.3 million for the three and six months ended June 30, 2018, to NOI of $16.3 million and $33.4 million for the three and six months ended June 30, 2019. (See the reconciliation of NOI to net income (loss) and accompanying notes contained within this release for additional information on how the Company calculates NOI.)
•
Experienced an increase in modified funds from operations (“MFFO”), as defined by the Institute for Portfolio Alternatives (formerly known as the Investment Program Association), from $5.3 million and $12.3 million for the three and six months ended June 30, 2018, to MFFO of $6.6 million and $12.5 million for the three and six months ended June 30, 2019. (See the reconciliation of MFFO to net income (loss) and accompanying notes contained within this release for additional information on how the Company calculates MFFO.)
•
Experienced a decrease in funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts, of $4.9 million and $9.8 million for the three and six months ended June 30, 2018, to FFO of $4.5 million and $9.5 million for the three and six months ended June 30, 2019. (See the reconciliation of FFO to net income (loss) and accompanying notes contained within this release for additional information on how the Company calculates FFO.)
•
Reported net cash provided by operating activities of $3.5 million for the six months ended June 30, 2019, compared to $9.2 million for the six months ended June 30, 2018. Net cash provided by investing activities was $206.8 million for the six months ended June 30, 2019, compared to $101.6 million for the six months ended June 30, 2018.
•
Reported net cash used in financing activities of $230.7 million for the six months ended June 30, 2019, which included $20.6 million of distributions paid, all of which were paid in cash. Net cash used in financing activities was $200.1 million for the six months ended June 30, 2018, which included $100.9 million of distributions paid, all of which were paid in cash.
"In a time when statewide rent control efforts and housing affordability continue to dominate the headlines, we believe our portfolio of apartments with average effective rent nearly 40 percent lower than today’s luxury product, as defined by a recent National Real Estate Investor article, is positioned favorably for the foreseeable future,” said Ella Neyland, President of Steadfast Income REIT.





2


About Steadfast Income REIT, Inc.
     Steadfast Income REIT, Inc. is a real estate investment trust that was formed to acquire and operate a diverse portfolio of real estate investments focused primarily on the multifamily sector, including stable, income-producing and value-added properties.
     Steadfast Income REIT, Inc. is sponsored by Steadfast REIT Investments, LLC, an affiliate of Steadfast Companies, an Orange County, California-based group of affiliated real estate investment and operating companies that acquire, develop and manage real estate in the U.S. and Mexico.
###
This release contains certain forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", "may" and "should" and their variations identify forward-looking statements. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release. Such factors include those described in the Risk Factors section of the Company's public filings with the Securities and Exchange Commission. Forward-looking statements in this document speak only as of the date on which such statements were made, and the Company undertakes no obligation to update any such statements that may become untrue because of subsequent events. Such forward-looking statements are subject to the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

FINANCIAL TABLES, NOTES AND EXHIBITS FOLLOW


3


STEADFAST INCOME REIT, INC.
CONSOLIDATED BALANCE SHEETS

 
June 30,
2019
 
December 31,
2018
 
(Unaudited)
 
 
ASSETS
Assets:
 
 
 
Real Estate:
 
 
 
Land
$
90,153,980

 
$
90,153,980

Building and improvements
799,967,673

 
795,383,423

Total real estate held for investment, cost
890,121,653

 
885,537,403

Less accumulated depreciation and amortization
(182,018,205
)
 
(165,112,070
)
Total real estate held for investment, net
708,103,448

 
720,425,333

Real estate held for sale, net
—

 
126,464,504

Total real estate, net
708,103,448

 
846,889,837

Cash and cash equivalents
124,685,084

 
142,078,166

Restricted cash
9,109,706

 
11,265,317

Investment in unconsolidated joint venture
13,869,450

 
14,085,399

Rents and other receivables
3,358,501

 
1,791,881

Assets related to real estate held for sale
—

 
848,960

Other assets
1,146,553

 
2,698,438

Total assets
$
860,272,742

 
$
1,019,657,998

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
 
 
 
Accounts payable and accrued liabilities
$
20,569,875

 
$
23,899,595

Notes payable:
 
 
 
Mortgage notes payable, net
480,842,343

 
566,900,461

Credit facility, net
9,926,410

 
52,363,460

Notes payable related to real estate held for sale, net
—

 
74,237,653

Total notes payable, net
490,768,753

 
693,501,574

Distributions payable
3,381,662

 
3,515,310

Due to affiliates
1,377,577

 
4,985,918

Liabilities related to real estate held for sale
—

 
2,994,267

Total liabilities
516,097,867

 
728,896,664

Commitments and contingencies
 
 
 
Stockholders’ Equity:
 
 
 
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized, no shares issued and outstanding
—

 
—

Common stock $0.01 par value per share; 999,999,000 shares authorized, 74,206,848 and 74,650,139 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively
742,069

 
746,502

Convertible stock, $0.01 par value per share; 1,000 shares authorized, issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
10

 
10

Additional paid-in capital
652,239,394

 
656,204,073

Cumulative distributions and net losses
(308,806,598
)
 
(366,189,251
)
Total stockholders’ equity
344,174,875

 
290,761,334

Total liabilities and stockholders’ equity
$
860,272,742

 
$
1,019,657,998



4



STEADFAST INCOME REIT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
Rental income
$
27,152,676

 
$
33,041,905

 
$
58,091,517

 
$
67,578,207

Other income
1,179,907

 
1,015,103

 
2,251,858

 
1,933,727

Total revenues
28,332,583

 
34,057,008

 
60,343,375

 
69,511,934

Expenses:
 
 
 
 
 
 
 
Operating, maintenance and management
6,771,405

 
9,059,224

 
14,848,950

 
18,478,862

Real estate taxes and insurance
3,790,757

 
6,809,156

 
9,344,570

 
12,672,478

Fees to affiliates
3,428,581

 
3,809,224

 
7,149,211

 
7,741,290

Depreciation and amortization
8,458,798

 
11,311,894

 
17,440,777

 
22,202,690

Interest expense
6,542,401

 
8,017,417

 
14,461,190

 
15,911,669

Loss on debt extinguishment
2,019,546

 
271,790

 
2,834,378

 
2,282,246

General and administrative expenses
1,691,410

 
1,570,715

 
3,118,092

 
3,340,732

Total expenses
32,702,898

 
40,849,420

 
69,197,168

 
82,629,967

Loss before other income (expense)
(4,370,315
)
 
(6,792,412
)
 
(8,853,793
)
 
(13,118,033
)
Other income (expense):
 
 
 
 
 
 
 
Equity in loss from unconsolidated joint venture
(210,642
)
 
(1,173,099
)
 
(199,149
)
 
(2,814,504
)
Gain on sales of real estate, net
46,487,211

 
—

 
86,888,796

 
81,247,054

Total other income (expense)
46,276,569

 
(1,173,099
)
 
86,689,647

 
78,432,550

Net income (loss)
$
41,906,254

 
$
(7,965,511
)
 
$
77,835,854

 
$
65,314,517

Income (loss) per common share — basic and diluted
$
0.56

 
$
(0.11
)
 
$
1.05

 
$
0.87

Weighted average number of common shares outstanding — basic
74,269,454

 
75,212,006

 
74,380,395

 
75,277,570

Weighted average number of common shares outstanding — diluted
74,280,704

 
75,223,881

 
74,391,645

 
75,289,445



5


Steadfast Income REIT, Inc.
Non-GAAP Measures - FFO and MFFO Reconciliation
For the Three and Six Months Ended June 30, 2019 and 2018
Due to certain unique operating characteristics of real estate companies, as discussed below, National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations, ("FFO"), which the Company believes to be an appropriate supplemental measure to reflect the operating performance of a real estate investment trust ("REIT"). The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to the Company's net income (loss) as determined under U.S. Generally Accepted Accounting Principals ("GAAP").
The Company defines FFO, a non-GAAP financial measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in December 2018 (the "White Paper"). The White Paper defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property and non-cash impairment charges of real estate related investments, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. In particular, the Company believes it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that due to the fact that impairments are based on estimated future undiscounted cash flows and the relatively limited term of the Company's operations, it could be difficult to recover any impairment charges. The Company's FFO calculation complies with NAREIT’s policy described above.
The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or as requested or required by lessees for operational purposes in order to maintain the value disclosed. The Company believes that since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, the Company believes that the use of FFO, which excludes the impact of real estate related depreciation and amortization, provides a more complete understanding of its performance to investors and to management, and when compared year over year, reflects the impact on its operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. We adopted ASU 2016-02 on January 1, 2019, which requires the Company, as a lessee, to recognize a liability for obligations under a lease contract and a right-of-use asset. The carrying amount of the right-of-use asset is amortized over the

6


term of the lease. Because the Company has no ownership rights (current or residual) in the underlying asset, NAREIT concluded that the amortization of the right-of-use asset should not be added back to GAAP net income (loss) in calculating FFO. This amortization expense is included in FFO. However, FFO, and modified funds from operations, ("MFFO"), as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating the Company's operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.
Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP, that are typically accounted for as operating expenses. The Company's management believes these fees and expenses do not affect the Company's overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. While other start-up entities may also experience significant acquisition activity during their initial years, the Company believes that public, non-listed REITs, like the Company, are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after acquisition activity ceases.
Due to the above factors and other unique features of publicly registered, non-listed REITs, the Institute for Portfolio Alternatives (the "IPA"), an industry trade group, has standardized a measure known as MFFO, which it has recommended as a supplemental measure for publicly registered non-listed REITs and which the Company believes to be another appropriate supplemental measure to reflect the operating performance of a public, non-listed REIT having the characteristics described above. MFFO is not equivalent to the Company's net income (loss) as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate with a limited life and targeted exit strategy, as currently intended. The Company believes that, because MFFO excludes costs that it considers more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that are not capitalized, as discussed below, and affects its operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of its operating performance after the period in which it is acquiring properties and once its portfolio is in place. By providing MFFO, the Company believes it is presenting useful information that assists investors and analysts to better assess the sustainability of its operating performance after its offering has been completed and its properties have been acquired. The Company also believes that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, the Company believes MFFO is useful in comparing the sustainability of its operating performance after its offering and acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of the Company's operating performance after its offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on the Company's operating performance during the periods in which properties are acquired.

7


The Company defines MFFO, a non-GAAP financial measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the "Practice Guideline"), issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; mark-to-market adjustments included in net income; nonrecurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, nonrecurring unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While the Company relies on its advisor for managing interest rate, hedge and foreign exchange risk, the Company does not retain an outside consultant to review all of its hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of the Company's operations, the Company believes it is appropriate to exclude such non-recurring gains and losses in calculating MFFO, as such gains and losses are not reflective of on-going operations.
The Company's MFFO calculation complies with the IPA’s Practice Guideline described above, except with respect to certain acquisition fees and expenses as discussed below. In calculating MFFO, the Company excludes acquisition related expenses that are not capitalized, amortization of above and below market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Historically, under GAAP, acquisition fees and expenses were characterized as operating expenses in determining operating net income. However, following the recent publication of ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business (“ASU 2017-01”), acquisition fees and expenses are capitalized and depreciated under certain conditions. The Company elected to early adopt ASU 2017-01, resulting in a substantial part of acquisition fees and expenses being capitalized and therefore not excluded from the calculation of MFFO but captured as depreciation in calculating FFO. However, these expenses are paid in cash by the Company. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by the Company, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. In the event that operational earnings and cash flow are not available to fund the reimbursement of acquisition fees and expenses incurred by the Company's advisor, such fees and expenses will need to be reimbursed to the advisor from other sources, including debt, net proceeds from the sale of properties, or from ancillary cash flows. The acquisition of properties, and the corresponding acquisition fees and expenses, is the key operational feature of the Company's business plan to generate operational income and cash flow to fund distributions to the Company's stockholders. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, the Company views fair value adjustments of derivatives and gains and losses from dispositions of assets as non-recurring items or items which are unrealized

8


and may not ultimately be realized, and which are not reflective of on-going operations and are therefore typically adjusted for when assessing operating performance.
The Company's management uses MFFO and the adjustments used to calculate MFFO in order to evaluate the Company's performance against other public, non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate in this manner. The Company believes that its use of MFFO and the adjustments used to calculate MFFO allow the Company to present its performance in a manner that reflects certain characteristics that are unique to public, non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors. By excluding expensed acquisition costs that are not capitalized, the use of MFFO provides information consistent with the Company's management's analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to the Company's current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, the Company believes MFFO provides useful supplemental information.
Presentation of this information is intended to provide useful information to investors as they compare the operating performance to that of other public, non-listed REITs, although it should be noted that not all public, non-listed REITs calculate FFO and MFFO the same way, so comparisons with other public, non-listed REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as an indication of the Company's performance, as an alternative to cash flows from operations as an indication of the Company's liquidity, or indicative of funds available to fund the Company's cash needs, including the Company's ability to make distributions to stockholders. FFO and MFFO should be reviewed in conjunction with GAAP measurements as an indication of the Company's performance. MFFO is useful in assisting the Company's management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and net asset value is disclosed. MFFO is not a useful measure in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining MFFO.
Neither the Securities and Exchange Commission (the "SEC"), NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that the Company uses to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the non-listed REIT industry and in response to such standardization the Company may have to adjust its calculation and characterization of FFO or MFFO accordingly.

9


The Company's calculation of FFO and MFFO is presented in the following table for the three and six months ended June 30, 2019 and 2018:
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
Reconciliation of net income (loss) to MFFO:
2019
 
2018
 
2019
 
2018
Net income (loss)
$
41,906,254

 
$
(7,965,511
)
 
$
77,835,854

 
$
65,314,517

Depreciation of real estate assets
8,457,713

 
10,989,153

 
17,425,950

 
21,841,657

Amortization of lease-related costs(1)
—

 
322,741

 
12,764

 
361,033

Gain on sales of real estate, net
(46,487,211
)
 
—

 
(86,888,796
)
 
(81,247,054
)
Adjustments for investment in unconsolidated joint venture(2)
597,169

 
1,562,339

 
1,109,349

 
3,566,705

FFO
4,473,925

 
4,908,722

 
9,495,121

 
9,836,858

Acquisition expenses(3)(4)
—

 
102,318

 
—

 
301,132

Unrealized loss (gain) on derivative instruments
61,418

 
41,953

 
161,297

 
(85,307
)
Loss on debt extinguishment
2,019,546

 
271,790

 
2,834,378

 
2,282,246

MFFO
$
6,554,889

 
$
5,324,783

 
$
12,490,796

 
$
12,334,929

________________
(1)
Amortization of lease-related costs for the three and six months ended June 30, 2019, excludes amortization of operating lease right-of-use assets of $1,085 and $2,063 that are included in FFO, respectively.
(2)
Reflects adjustments to add back the Company's noncontrolling interest share of the adjustments to reconcile the Company's net income attributable to common stockholders to FFO for the Company's equity investment in the unconsolidated joint venture, which principally consists of depreciation and amortization incurred by the joint venture.
(3)
By excluding acquisition expenses, management believes MFFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of the Company's properties. Acquisition fees and expenses include payments to the Company's advisor or third parties. Historically, acquisition fees and expenses under GAAP were considered operating expenses and as expenses included in the determination of net income (loss) and income (loss) from continuing operations, both of which are performance measures under GAAP. Following the recent publication of ASU 2017-01, acquisition expenses are capitalized and depreciated under certain conditions. The Company elected to early adopt ASU 2017-01 resulting in a substantial part of acquisition fees and expenses being capitalized and therefore not excluded from the calculation of MFFO but are captured as depreciation in calculating FFO. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by the Company, unless earnings from operations or net sales proceeds from the disposition of properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to the property. In the event that operational earnings and cash flow are not available to fund the reimbursement of acquisition fees and expenses incurred by the Company's advisor, such fees and expenses will need to be reimbursed to the advisor from other sources, including debt, operational earnings or cash flow, net proceeds from the sale of properties, or from ancillary cash flows.

10


(4)
No acquisition expenses were incurred for each of the three and six months ended June 30, 2019. Acquisition expenses for the three and six months ended June 30, 2018 of $102,318 and $301,132, respectively, did not meet the criteria for capitalization under ASU 2017-01 and are recorded in general and administrative expenses in the accompanying condensed consolidated unaudited statements of operations.


















11


Steadfast Income REIT, Inc.
Non-GAAP Measures - Net Operating Income
For the Three and Six Months Ended June 30, 2019 and 2018
Net Operating Income ("NOI") is a non-GAAP financial measure of performance. NOI is used by investors and the Company's management to evaluate and compare the performance of the Company's properties and to determine trends in earnings and to compute the fair value of the Company's properties as it is not affected by (1) the cost of funds of the Company, (2) acquisition costs of the Company, (3) non-operating fees paid to affiliates, (4) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, or (5) general and administrative expenses and other gains and losses that are specific to the Company. The cost of funds is eliminated from net income (loss) because it is specific to the Company's particular financing capabilities and constraints. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by the Company regarding the appropriate mix of capital which may have changed or may change in the future. Acquisition costs (those that did not meet the criteria for capitalization under ASU 2017-01) and non-operating fees to affiliates are eliminated because they do not reflect continuing operating costs of the property owner. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in the Company's multifamily properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing the Company's operating results to the operating results of other real estate companies that have not made similarly timed purchases or sales. The Company believes that eliminating these costs from net income (loss) is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating its properties as well as trends in occupancy rates, rental rates and operating costs.
However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, interest income and other expense, acquisition costs (those that did not meet the criteria for capitalization under ASU 2017-01), certain fees to affiliates, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness.
NOI is a measure of the operating performance of the Company's properties but does not measure the Company's performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, the Company's NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as the Company does.

12


The following is a reconciliation of the Company's NOI to net income (loss) for the three and six months ended June 30, 2019 and 2018, computed in accordance with GAAP:
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Net income (loss)
 
$
41,906,254

 
$
(7,965,511
)
 
$
77,835,854

 
$
65,314,517

Fees to affiliates(1)
 
2,027,504

 
2,544,340

 
4,303,703

 
5,128,601

Depreciation and amortization
 
8,458,798

 
11,311,894

 
17,440,777

 
22,202,690

Interest expense
 
6,542,401

 
8,017,417

 
14,461,190

 
15,911,669

Loss on debt extinguishment
 
2,019,546

 
271,790

 
2,834,378

 
2,282,246

General and administrative expenses
 
1,691,410

 
1,570,715

 
3,118,092

 
3,340,732

Gain on sales of real estate, net
 
(46,487,211
)
 
—

 
(86,888,796
)
 
(81,247,054
)
Adjustments for investment in unconsolidated joint venture(2)
 
939,033

 
1,917,326

 
1,663,376

 
4,234,502

Other gains(3)
 
(753,989
)
 
(432,902
)
 
(1,348,454
)
 
(869,907
)
Net operating income
 
$
16,343,746

 
$
17,235,069

 
$
33,420,120

 
$
36,297,996

________________
(1)
Fees to affiliates for the three and six months ended June 30, 2019, exclude property management fees of $817,754 and $1,725,825 and other reimbursements of $583,323 and $1,119,683, respectively, that are included in NOI. Fees to affiliates for the three and six months ended June 30, 2018, exclude property management fees of $978,620 and $2,003,352 and other reimbursements of $286,264 and $609,337, respectively, that are included in NOI.
(2)
Reflects adjustments to add back the Company's noncontrolling interest share of the adjustments to reconcile the Company's net income attributable to common stockholders to NOI for the Company's equity investment in the unconsolidated joint venture, which principally consists of depreciation, amortization and interest expense incurred by the joint venture.
(3)
Other gains for the three and six months ended June 30, 2019 and 2018 include non-recurring insurance proceeds and interest income that are not included in NOI.




13


EXHIBIT A
logoa26.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monthly Portfolio Snapshot
|
APRIL 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Location
 
Total Units
 
Non-Revenue Units
 
Rentable Units
 
Average Occupied Units
 
Average % Occupied
 
% Leased
Multi-Family
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Clarion Park Apartments
 
Olathe, KS
 
220
 
1
 
219
 
215
 
97.5%
 
99.5%
Truman Farm Villas
 
Grandview, MO
 
200
 
1
 
199
 
191
 
95.4%
 
96.8%
Spring Creek Apartments
 
Edmond, OK
 
252
 
1
 
251
 
238
 
94.5%
 
95.6%
Montclair Parc Apartment Homes
 
Oklahoma City, OK
 
360
 
1
 
359
 
342
 
95.0%
 
96.0%
Hilliard Park Apartments
 
Columbus, OH
 
201
 
1
 
200
 
194
 
96.3%
 
97.9%
Sycamore Terrace Apartments
 
Terre Haute, IN
 
250
 
—
 
250
 
235
 
93.9%
 
96.1%
Hilliard Summit Apartments
 
Columbus, OH
 
208
 
1
 
207
 
194
 
93.3%
 
95.7%
Forty 57 Apartments
 
Lexington, KY
 
436
 
1
 
435
 
418
 
95.9%
 
96.5%
Riverford Crossing Apartments
 
Frankfort, KY
 
300
 
1
 
299
 
290
 
96.6%
 
97.6%
Montecito Apartments
 
Austin, TX
 
268
 
3
 
265
 
255
 
95.2%
 
96.6%
Hilliard Grand Apartments
 
Dublin, OH
 
314
 
1
 
313
 
298
 
94.8%
 
98.4%
Deep Deuce at Bricktown
 
Oklahoma City, OK
 
294
 
1
 
293
 
279
 
95.0%
 
97.2%
Retreat at Quail North
 
Oklahoma City, OK
 
240
 
1
 
239
 
229
 
95.5%
 
97.2%
Waterford on the Meadow
 
Plano, TX
 
350
 
—
 
350
 
337
 
96.3%
 
97.2%
Tapestry Park Apartments
 
Birmingham, AL
 
354
 
1
 
353
 
331
 
93.5%
 
94.7%
Bricegrove Park Apartments
 
Canal Winchester, OH
 
240
 
—
 
240
 
234
 
97.5%
 
98.7%
Retreat at Hamburg Place
 
Lexington, KY
 
150
 
1
 
149
 
142
 
95.0%
 
95.8%
Villas at Huffmeister
 
Houston, TX
 
294
 
1
 
293
 
282
 
96.0%
 
97.0%
Villas at Kingwood
 
Kingwood, TX
 
330
 
1
 
329
 
305
 
92.4%
 
94.2%
Waterford Place at Riata Ranch
 
Cypress, TX
 
228
 
1
 
227
 
207
 
90.9%
 
91.7%
Carrington Place
 
Houston, TX
 
324
 
1
 
323
 
302
 
93.1%
 
95.1%
Carrington at Champion Forest
 
Houston, TX
 
284
 
1
 
283
 
266
 
93.6%
 
94.8%
Carrington Park at Huffmeister
 
Cypress, TX
 
232
 
1
 
231
 
217
 
93.5%
 
94.6%
Heritage Grand at Sienna Plantation
 
Missouri City, TX
 
240
 
1
 
239
 
221
 
92.0%
 
93.2%
Mallard Crossing Apartments
 
Loveland, OH
 
350
 
1
 
349
 
340
 
97.1%
 
98.2%
Reserve at Creekside
 
Chattanooga, TN
 
192
 
1
 
191
 
185
 
96.6%
 
97.7%
Oak Crossing Apartments
 
Fort Wayne, IN
 
222
 
1
 
221
 
214
 
96.6%
 
98.0%
Double Creek Flats
 
Plainfield, IN
 
240
 
1
 
239
 
226
 
94.1%
 
95.9%
Jefferson at Perimeter Apartments
 
Dunwoody, GA
 
504
 
—
 
504
 
461
 
91.6%
 
93.4%
  Total
 
 
 
8,077
 
27
 
8,050
 
7,648
 
94.7%
 
96.2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



logoa26.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monthly Portfolio Snapshot
|
MAY 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Location
 
Total Units
 
Non-Revenue Units
 
Rentable Units
 
Average Occupied Units
 
Average % Occupied
 
% Leased
Multi-Family
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Clarion Park Apartments
 
Olathe, KS
 
220
 
1
 
219
 
217
 
98.7%
 
99.5%
Spring Creek Apartments
 
Edmond, OK
 
252
 
1
 
251
 
240
 
95.3%
 
96.5%
Montclair Parc Apartment Homes
 
Oklahoma City, OK
 
360
 
1
 
359
 
346
 
96.0%
 
97.2%
Hilliard Park Apartments
 
Columbus, OH
 
201
 
1
 
200
 
194
 
96.4%
 
98.3%
Sycamore Terrace Apartments
 
Terre Haute, IN
 
250
 
—
 
250
 
235
 
93.8%
 
97.4%
Hilliard Summit Apartments
 
Columbus, OH
 
208
 
1
 
207
 
193
 
93.0%
 
95.5%
Forty 57 Apartments
 
Lexington, KY
 
436
 
1
 
435
 
415
 
95.2%
 
96.3%
Riverford Crossing Apartments
 
Frankfort, KY
 
300
 
1
 
299
 
288
 
96.1%
 
98.1%
Montecito Apartments
 
Austin, TX
 
268
 
3
 
265
 
253
 
94.3%
 
96.4%
Hilliard Grand Apartments
 
Dublin, OH
 
314
 
1
 
313
 
303
 
96.5%
 
98.3%
Deep Deuce at Bricktown
 
Oklahoma City, OK
 
294
 
1
 
293
 
283
 
96.3%
 
97.7%
Retreat at Quail North
 
Oklahoma City, OK
 
240
 
1
 
239
 
230
 
95.9%
 
97.7%
Tapestry Park Apartments
 
Birmingham, AL
 
354
 
1
 
353
 
330
 
93.2%
 
95.8%
Bricegrove Park Apartments
 
Canal Winchester, OH
 
240
 
—
 
240
 
233
 
96.9%
 
98.2%
Retreat at Hamburg Place
 
Lexington, KY
 
150
 
1
 
149
 
144
 
96.3%
 
97.6%
Villas at Huffmeister
 
Houston, TX
 
294
 
1
 
293
 
283
 
96.1%
 
96.7%
Villas at Kingwood
 
Kingwood, TX
 
330
 
1
 
329
 
312
 
94.5%
 
96.0%
Waterford Place at Riata Ranch
 
Cypress, TX
 
228
 
1
 
227
 
208
 
91.0%
 
93.4%
Carrington Place
 
Houston, TX
 
324
 
1
 
323
 
302
 
93.1%
 
94.7%
Carrington at Champion Forest
 
Houston, TX
 
284
 
1
 
283
 
264
 
93.0%
 
95.6%
Carrington Park at Huffmeister
 
Cypress, TX
 
232
 
1
 
231
 
214
 
92.3%
 
94.6%
Heritage Grand at Sienna Plantation
 
Missouri City, TX
 
240
 
1
 
239
 
224
 
93.3%
 
94.8%
Mallard Crossing Apartments
 
Loveland, OH
 
350
 
1
 
349
 
340
 
97.2%
 
98.3%
Reserve at Creekside
 
Chattanooga, TN
 
192
 
2
 
190
 
179
 
93.3%
 
95.3%
Oak Crossing Apartments
 
Fort Wayne, IN
 
222
 
1
 
221
 
215
 
96.7%
 
98.3%
Double Creek Flats
 
Plainfield, IN
 
240
 
1
 
239
 
230
 
95.9%
 
98.2%
Jefferson at Perimeter Apartments
 
Dunwoody, GA
 
504
 
—
 
504
 
468
 
92.9%
 
94.7%
  Total
 
 
 
7,527
 
27
 
7,500
 
7,143
 
94.9%
 
96.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 












logoa26.jpg
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Monthly Portfolio Snapshot
|
JUNE 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
 
Location
 
Total Units
 
Non-Revenue Units
 
Rentable Units
 
Average Occupied Units
 
Average % Occupied
 
% Leased
Multi-Family
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Clarion Park Apartments
 
Olathe, KS
 
220
 
1
 
219
 
212
 
96.3%
 
99.0%
Spring Creek Apartments
 
Edmond, OK
 
252
 
1
 
251
 
239
 
94.9%
 
95.8%
Montclair Parc Apartment Homes
 
Oklahoma City, OK
 
360
 
1
 
359
 
346
 
96.1%
 
97.1%
Hilliard Park Apartments
 
Columbus, OH
 
201
 
1
 
200
 
191
 
95.2%
 
97.9%
Sycamore Terrace Apartments
 
Terre Haute, IN
 
250
 
—
 
250
 
227
 
90.8%
 
93.2%
Hilliard Summit Apartments
 
Columbus, OH
 
208
 
1
 
207
 
197
 
94.8%
 
96.1%
Forty 57 Apartments
 
Lexington, KY
 
436
 
1
 
435
 
418
 
96.0%
 
97.2%
Riverford Crossing Apartments
 
Frankfort, KY
 
300
 
1
 
299
 
290
 
96.8%
 
97.9%
Montecito Apartments
 
Austin, TX
 
268
 
4
 
264
 
258
 
96.3%
 
97.5%
Hilliard Grand Apartments
 
Dublin, OH
 
314
 
1
 
313
 
302
 
96.1%
 
98.0%
Deep Deuce at Bricktown
 
Oklahoma City, OK
 
294
 
1
 
293
 
283
 
96.2%
 
98.3%
Retreat at Quail North
 
Oklahoma City, OK
 
240
 
1
 
239
 
231
 
96.2%
 
98.1%
Tapestry Park Apartments
 
Birmingham, AL
 
354
 
1
 
353
 
333
 
94.0%
 
96.8%
Bricegrove Park Apartments
 
Canal Winchester, OH
 
240
 
—
 
240
 
233
 
97.2%
 
99.1%
Retreat at Hamburg Place
 
Lexington, KY
 
150
 
1
 
149
 
146
 
97.5%
 
98.9%
Villas at Huffmeister
 
Houston, TX
 
294
 
1
 
293
 
278
 
94.5%
 
95.8%
Villas at Kingwood
 
Kingwood, TX
 
330
 
1
 
329
 
313
 
94.9%
 
96.5%
Waterford Place at Riata Ranch
 
Cypress, TX
 
228
 
1
 
227
 
215
 
94.2%
 
96.0%
Carrington Place
 
Houston, TX
 
324
 
1
 
323
 
300
 
92.5%
 
95.2%
Carrington at Champion Forest
 
Houston, TX
 
284
 
1
 
283
 
269
 
94.9%
 
97.6%
Carrington Park at Huffmeister
 
Cypress, TX
 
232
 
1
 
231
 
213
 
91.9%
 
94.4%
Heritage Grand at Sienna Plantation
 
Missouri City, TX
 
240
 
1
 
239
 
228
 
95.0%
 
96.4%
Mallard Crossing Apartments
 
Loveland, OH
 
350
 
1
 
349
 
337
 
96.4%
 
97.5%
Reserve at Creekside
 
Chattanooga, TN
 
192
 
2
 
190
 
182
 
94.8%
 
97.1%
Oak Crossing Apartments
 
Fort Wayne, IN
 
222
 
1
 
221
 
219
 
98.5%
 
99.5%
Double Creek Flats
 
Plainfield, IN
 
240
 
1
 
239
 
229
 
95.3%
 
96.9%
Jefferson at Perimeter Apartments
 
Dunwoody, GA
 
504
 
—
 
504
 
467
 
92.7%
 
95.0%
  Total
 
 
 
7,527
 
28
 
7,499
 
7,156
 
95.1%
 
96.9%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




DEFINITIONS OF PORTFOLIO PERFORMANCE METRICS
Total Units:
Number of units per property at the end of the reporting period.
Non-Revenue Units:
Number of model units or other non-revenue administrative units at the end of the reporting period.
Rentable Units:
Total Units less Non-Revenue Units at the end of the reporting period.
Average Occupied Units:
Number of units occupied based on a daily average during the reporting period.
Average Percent Occupied:
Percent of units occupied (Average Occupied Units divided by Total Units).
Percent Leased:
Percent of Total Units leased at the end of the reporting period (number of leased units divided by Total Units).




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