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 August 8, 2016 |
Altisource Residential Corporation | |||
August 8, 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 |
• | Increased single-family rental (“SFR”) portfolio during the quarter by 13% over the prior quarter to 3,977 homes, including 3,010 rented properties, 273 listed and ready for rent and 694 properties under leasehold renovation and unit turn. |
• | Stabilized rentals grew to 3,112 properties with 97% leased. |
• | Completed the sale of 895 non-performing loans (“NPLs”) in June 2016 with an unpaid principal balance (“UPB”) of $213.1 million, or approximately 17% of the total remaining UPB in Residential’s loan portfolio. |
• | Sold 910 real estate owned (“REO”) properties, representing an increase of 33% over the 686 REO properties sold in the first quarter of 2016. |
• | Achieved average rent increases of approximately 6% on lease renewals. |
• | Declared and paid a second quarter 2016 dividend of $0.15 per share. |
• | Moved substantially all remaining Ocwen-serviced NPLs away from Ocwen as of August 1, 2016. |
• | Entered into a non-binding letter of intent to purchase between 4,000 and 4,500 SFR properties from an unrelated third party, subject to due diligence, negotiation of definitive transaction documents, financing arrangements and other factors. |
• | Residential has had continued success executing upon its diversified single-family acquisition strategy and capitalizing on the compelling market opportunity to acquire high-yielding single-family homes at attractive prices. During the second quarter of 2016, Residential increased the size of its rental portfolio by 446 properties to bring the rental portfolio to 3,977 properties at June 30, 2016, representing an increase of 13% over the prior quarter. The Company has developed and employed internal proprietary models, which it believes gives it an advantage in identifying and purchasing rental properties with optimal rental return metrics in areas that have attractive occupancy levels and rental margins. |
• | Residential continued its efforts to sell certain NPLs to take advantage of attractive market pricing, successfully completing the sale of 895 NPLs and bringing the total NPLs sold in bulk transactions to 1,973 for the first six months of 2016. The Company has also accelerated the sale of non-rental REO properties with 910 of such properties sold during the second quarter as compared to 686 properties sold in the first quarter of 2016, representing a 33% increase. The Company expects that NPL sales and non-rental REO property sales will allow it 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 the Company may determine. |
• | Residential’s lenders continue to support its strategy. In March 2016, Residential increased the size of its repurchase facility with Credit Suisse from $275.0 million to $350.0 million and extended the facility for an additional year to March 2017 and, in April 2016, it increased the size of its loan facility with Nomura from $200 million to $250 million and extended the facility for an additional year to April 2017. |
Three months ended June 30, 2016 | Three months ended June 30, 2015 | Six months ended June 30, 2016 | Six months ended June 30, 2015 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 8,581 | $ | 2,140 | $ | 14,652 | $ | 3,540 | |||||||
Change in unrealized gain on mortgage loans | (71,702 | ) | 42,209 | (114,154 | ) | 103,343 | |||||||||
Net realized gain on mortgage loans | 8,180 | 19,272 | 20,912 | 34,654 | |||||||||||
Net realized gain on mortgage loans held for sale | 15,950 | 254 | 50,147 | 405 | |||||||||||
Net realized gain on real estate | 39,125 | 12,404 | 68,526 | 23,012 | |||||||||||
Interest income | 104 | 240 | 216 | 480 | |||||||||||
Total revenues | 238 | 76,519 | 40,299 | 165,434 | |||||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 18,003 | 16,857 | 36,204 | 29,316 | |||||||||||
Real estate depreciation and amortization | 4,040 | 1,344 | 7,641 | 2,342 | |||||||||||
Acquisition fees and costs | 1,523 | 513 | 3,104 | 877 | |||||||||||
Selling costs and impairment | 11,842 | 8,839 | 38,433 | 23,530 | |||||||||||
Mortgage loan servicing costs | 8,444 | 16,246 | 20,168 | 34,512 | |||||||||||
Interest expense | 10,470 | 13,398 | 26,886 | 25,041 | |||||||||||
General and administrative | 3,640 | 1,056 | 6,600 | 6,223 | |||||||||||
Change in unrealized gain on mortgage loans | 5,050 | 5,151 | 9,576 | 20,051 | |||||||||||
Total expenses | 63,012 | 63,404 | 148,612 | 141,892 | |||||||||||
Other (expense) income | (750 | ) | — | (750 | ) | 2,000 | |||||||||
(Loss) income before income taxes | (63,524 | ) | 13,115 | (109,063 | ) | 25,542 | |||||||||
Income tax expense | 4 | 23 | 123 | 26 | |||||||||||
Net (loss) income | $ | (63,528 | ) | $ | 13,092 | $ | (109,186 | ) | $ | 25,516 | |||||
(Loss) earnings per share of common stock - basic: | |||||||||||||||
(Loss) earnings per basic share | $ | (1.16 | ) | $ | 0.23 | $ | (1.99 | ) | $ | 0.45 | |||||
Weighted average common stock outstanding - basic | 54,616,221 | 57,208,273 | 54,998,171 | 57,204,602 | |||||||||||
(Loss) earnings per share of common stock - diluted: | |||||||||||||||
(Loss) earnings per diluted share | $ | (1.16 | ) | $ | 0.23 | $ | (1.99 | ) | $ | 0.44 | |||||
Weighted average common stock outstanding - diluted | 54,616,221 | 57,407,845 | 54,998,171 | 57,407,253 | |||||||||||
Dividends declared per common share | $ | 0.15 | $ | 0.55 | $ | 0.45 | $ | 1.18 |
June 30, 2016 | December 31, 2015 | ||||||
Assets: | |||||||
Real estate held for use: | |||||||
Land | $ | 81,905 | $ | 56,346 | |||
Rental residential properties (net of accumulated depreciation of $13,337 and $7,127, respectively) | 332,037 | 224,040 | |||||
Real estate owned | 311,642 | 455,483 | |||||
Total real estate held for use, net | 725,584 | 735,869 | |||||
Real estate assets held for sale | 225,682 | 250,557 | |||||
Mortgage loans at fair value | 707,445 | 960,534 | |||||
Mortgage loans held for sale | 4,058 | 317,336 | |||||
Cash and cash equivalents | 228,341 | 116,702 | |||||
Restricted cash | 14,483 | 20,566 | |||||
Accounts receivable, net | 47,378 | 45,903 | |||||
Related party receivables | — | 2,180 | |||||
Prepaid expenses and other assets | 1,822 | 1,126 | |||||
Total assets | $ | 1,954,793 | $ | 2,450,773 | |||
Liabilities: | |||||||
Repurchase agreements | $ | 740,485 | $ | 763,369 | |||
Other secured borrowings | 160,392 | 502,599 | |||||
Accounts payable and accrued liabilities | 42,322 | 32,448 | |||||
Related party payables | 5,489 | — | |||||
Total Liabilities | 948,688 | 1,298,416 | |||||
Commitments and contingencies | — | — | |||||
Equity: | |||||||
Common stock, $.01 par value, 200,000,000 authorized shares; 54,465,184 shares issued and outstanding as of June 30, 2016 and 55,581,005 shares issued and outstanding as of December 31, 2015 | 545 | 556 | |||||
Additional paid-in capital | 1,190,011 | 1,202,418 | |||||
Accumulated deficit | (184,451 | ) | (50,617 | ) | |||
Total equity | 1,006,105 | 1,152,357 | |||||
Total liabilities and equity | $ | 1,954,793 | $ | 2,450,773 |
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