MARYLAND | 001-35657 | 46-0633510 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Exhibit No. | Description | |
Exhibit 99.1 | Press Release of Altisource Residential Corporation dated May 9, 2016 |
Altisource Residential Corporation | |||
May 9, 2016 | By: | /s/ Michael G. Lubin | |
Michael G. Lubin General Counsel and Secretary |
FOR IMMEDIATE RELEASE | FOR FURTHER INFORMATION CONTACT: |
Robin N. Lowe Chief Financial Officer T: 1-345-815-9919 E: Robin.Lowe@AltisourceAMC.com |
• | Generated estimated taxable income of $16.9 million, or $0.30 per share, and declared a $0.15 per share quarterly dividend. |
• | Increased rental portfolio during the quarter by 29% to 3,531 homes, including 2,720 rented properties, 265 listed and ready for rent and 546 properties under leasehold renovation and unit turn. |
◦ | Consummated the acquisition of 590 single-family rental properties. |
• | Completed the sale of 1,078 non-performing loans (“NPLs”) in March 2016 within approximately 1% of the balance sheet carrying value. The unpaid principal balance (“UPB”) of the NPLs sold was $384.1 million, or approximately 28% of the total remaining UPB in Residential’s loan portfolio. |
• | Increased and extended the Company's repurchase and lending facilities with key lenders: |
◦ | Increased the repurchase facility with Credit Suisse from $275.0 million to $350.0 million on March 30, 2016. |
◦ | Negotiated an increase of the loan facility with Nomura from $200.0 million to $250.0 million, which closed on April 7, 2016. |
• | Completed the sale of an aggregate of 686 real estate owned (“REO”) properties, representing an increase of 76% over the 389 REO properties sold in the fourth quarter of 2015. |
• | Achieved average rental increases of approximately 6% on lease renewals. |
• | Completed $10.0 million of stock buybacks, bringing total repurchases under the repurchase program to $35.0 million. |
• | We have had continued success executing upon our diversified single-family acquisition strategy and capitalizing on the compelling market opportunity to acquire high-yielding single-family homes at attractive prices. During the first quarter of 2016, we increased the size of our rental portfolio from 2,732 properties at December 31, 2015 to 3,531 properties at March 31, 2016, representing an increase of 29%. This increase is primarily attributable to our bulk acquisition of 590 single-family rentals from an unrelated third party. We have developed and employed internal proprietary models, which we believe give us an advantage in identifying and purchasing rental properties with optimal rental return metrics in areas that have attractive occupancy levels and rental margins. Our initial areas of focus have begun to generate attractive rental yields. |
• | We continued efforts to sell certain NPLs to take advantage of attractive market pricing during the first quarter of 2016, successfully completing the sale of 1,078 NPLs at a transaction price within 1% of the carrying value of the loans. This evidences that, not only has the market for NPLs remained strong through 2015 year-end, but also that our recorded valuation of these loans is accurate. We have also accelerated the sale of our non-rental REO properties. We expect that NPL sales and non-rental REO property sales at opportune times will allow us to recycle capital to purchase pools of stabilized rental homes at attractive yields, to repurchase common stock or to utilize the proceeds for such other purposes as we may determine. |
• | Our partnership with Altisource Portfolio Solutions S.A. remains a key driver of efficiency and cost management in our model, and provides the Company with a scalable, established, nationwide property management infrastructure to support our acquisition of large numbers of single-family rental properties. Importantly, our external property management structure allows the Company to achieve scale in our single-family rental portfolio without incurring the substantial costs of developing our own nationwide property management infrastructure. |
• | Our lenders continue to support our SFR strategy. In March 2016, we increased the size of our repurchase facility with Credit Suisse from $275.0 million to $350.0 million and in April 2016, we increased the size of our loan facility with Nomura from $200.0 million to $250.0 million. Both facilities were extended for an additional year to March 2017 and April 2017, respectively. These amendments were in addition to the amendment and restatement of our $750.0 million repurchase facility with Wells Fargo in September 2015 that extended the termination date to September 2017. |
• | As a reflection of our confidence in our long-term strategy and belief that our stock represents an attractive investment opportunity at current levels, we repurchased $10.0 million of our common stock during the first quarter. These repurchases were in addition to the $25.0 million we purchased in 2015, bringing total stock repurchases to $35.0 million. We will work to continue to strike the right balance between opportunities to acquire high-yielding rental homes, our liquidity position and additional repurchases of stock. |
Three months ended March 31, 2016 | Three months ended March 31, 2015 | ||||||
Revenues: | |||||||
Rental revenues | $ | 6,071 | $ | 1,400 | |||
Net unrealized (loss) gain on mortgage loans | (42,452 | ) | 61,134 | ||||
Net realized gain on mortgage loans | 12,732 | 15,382 | |||||
Net realized gain on mortgage loans held for sale | 34,197 | 151 | |||||
Net realized gain on real estate | 29,401 | 10,608 | |||||
Interest income | 112 | 240 | |||||
Total revenues | 40,061 | 88,915 | |||||
Expenses: | |||||||
Residential property operating expenses | 18,201 | 12,459 | |||||
Real estate depreciation and amortization | 3,601 | 998 | |||||
Acquisition fees and costs | 1,581 | 364 | |||||
Selling costs and impairment | 26,591 | 14,691 | |||||
Mortgage loan servicing costs | 11,724 | 18,266 | |||||
Interest expense | 16,416 | 11,643 | |||||
General and administrative | 2,960 | 4,417 | |||||
Related party general and administrative | 4,526 | 15,650 | |||||
Total expenses | 85,600 | 78,488 | |||||
Other income | — | 2,000 | |||||
(Loss) income before income taxes | (45,539 | ) | 12,427 | ||||
Income tax expense | 119 | 3 | |||||
Net (loss) income | $ | (45,658 | ) | $ | 12,424 | ||
(Loss) earnings per share of common stock - basic: | |||||||
(Loss) earnings per basic share | $ | (0.82 | ) | $ | 0.22 | ||
Weighted average common stock outstanding - basic | 55,380,120 | 57,200,889 | |||||
(Loss) earnings per share of common stock - diluted: | |||||||
(Loss) earnings per diluted share | $ | (0.82 | ) | $ | 0.22 | ||
Weighted average common stock outstanding - diluted | 55,380,120 | 57,406,619 | |||||
Dividends declared per common share | $ | 0.15 | $ | 0.63 |
March 31, 2016 | December 31, 2015 | ||||||
Assets: | |||||||
Real estate held for use: | |||||||
Land | $ | 75,080 | $ | 56,346 | |||
Rental residential properties (net of accumulated depreciation of $9,948 and $7,127, respectively) | 300,059 | 224,040 | |||||
Real estate owned | 329,223 | 455,483 | |||||
Total real estate held for use, net | 704,362 | 735,869 | |||||
Real estate assets held for sale | 297,074 | 250,557 | |||||
Mortgage loans at fair value | 924,543 | 960,534 | |||||
Mortgage loans held for sale | 4,045 | 317,336 | |||||
Cash and cash equivalents | 124,560 | 116,702 | |||||
Restricted cash | 17,435 | 20,566 | |||||
Accounts receivable, net | 61,038 | 45,903 | |||||
Related party receivables | 214 | 2,180 | |||||
Prepaid expenses and other assets | 1,949 | 1,126 | |||||
Total assets | $ | 2,135,220 | $ | 2,450,773 | |||
Liabilities: | |||||||
Repurchase agreements | $ | 846,984 | $ | 763,369 | |||
Other secured borrowings | 164,097 | 502,599 | |||||
Accounts payable and accrued liabilities | 39,187 | 32,448 | |||||
Related party payables | 4,676 | — | |||||
Total Liabilities | 1,054,944 | 1,298,416 | |||||
Commitments and contingencies | — | — | |||||
Equity: | |||||||
Common stock, $.01 par value, 200,000,000 authorized shares; 54,695,816 shares issued and outstanding as of March 31, 2016 and 55,581,005 shares issued and outstanding as of December 31, 2015 | 547 | 556 | |||||
Additional paid-in capital | 1,192,483 | 1,202,418 | |||||
Accumulated deficit | (112,754 | ) | (50,617 | ) | |||
Total equity | 1,080,276 | 1,152,357 | |||||
Total liabilities and equity | $ | 2,135,220 | $ | 2,450,773 |
Three months ended March 31, 2016 | Three months ended March 31, 2015 | ||||||
(Loss) income before income taxes | $ | (45,539 | ) | $ | 12,427 | ||
Add net loss of taxable REIT subsidiaries | 24,110 | 4,947 | |||||
Adjusted net (loss) income | (21,429 | ) | 17,374 | ||||
Book to tax differences: | |||||||
Net unrealized loss (gain) on mortgage loans | 67,358 | (12,649 | ) | ||||
Net realized gain on mortgage loans | (5,276 | ) | (2,844 | ) | |||
Net realized gain on re-performing mortgage loans | (21,345 | ) | (82 | ) | |||
Net realized gain on real estate sold | (34,510 | ) | (10,799 | ) | |||
Interest income, advances and recoveries | 7,494 | 6,182 | |||||
Depreciation and amortization | 1,543 | 354 | |||||
Valuations and impairments | 14,299 | 10,708 | |||||
Mortgage loan servicing cost | 7,296 | 13,160 | |||||
Acquisition fees and due diligence | 1,578 | 128 | |||||
Other book/tax differences, net | (119 | ) | 126 | ||||
Estimated REIT taxable income (non-GAAP) | $ | 16,889 | $ | 21,658 |
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