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 November 7, 2016 |
Altisource Residential Corporation | |||
November 7, 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 |
• | Completed the acquisition of a highly stabilized portfolio of 4,262 single-family rental homes for an aggregate purchase price of $652.3 million in a seller financed transaction that significantly enhances Residential's presence in new and existing strategic target markets (the “HOME SFR Transaction”). |
• | Increased the rental portfolio during the quarter by 115% over the prior quarter to 8,541 homes. |
• | Stabilized rentals grew by 140% to 7,466 properties with 95% leased. |
• | Rental revenue increased 12% over last quarter to $9.6 million bringing year to date rental revenue to $24.2 million. |
• | Reduced non-rental REO and NPL portfolios by 16% and 9%, respectively, since June 30, 2016. |
• | Achieved average rent increases of approximately 10% on re-leases and 7% on lease renewals. |
• | Diversified our property management capabilities, retaining Main Street Renewal LLC (“MSR”) as manager for the properties acquired in the HOME SFR Transaction. |
• | Repurchased $6.3 million in stock bringing total purchases under the plan to $43.8 million. |
• | Declared and paid a third quarter 2016 dividend of $0.15 per share. |
• | On September 30, 2016, we completed a transformative acquisition of 4,262 rental homes for an aggregate purchase price of $652.3 million in two separate seller financed transactions. The HOME SFR Transaction brings our total rental portfolio to 8,541 properties at September 30, 2016 and enhances our presence in new and existing strategic target markets, including Florida, Texas, Georgia, Tennessee, North Carolina and South Carolina. The HOME SFR Transaction is immediately accretive to our earnings with approximately 97% of the properties being stabilized rentals. |
• | In connection with the HOME SFR Transaction, our subsidiary that owns the properties, HOME SFR Borrower, LLC, received approximately $489.3 million in seller financing, representing 75% of the aggregate purchase price. This loan |
• | In connection with the seller financing, we retained the current property manager for the portfolio, MSR, to provide property management services with respect to the properties acquired in the HOME SFR Transaction. This new property management relationship diversifies our property management services and supplements our strong relationship with Altisource Portfolio Solutions S.A. (“ASPS”). We believe that the property management agreements with MSR and ASPS are, and will continue to be, key drivers of efficiency and cost management in our model and provide us with scalable, established, geographically dispersed property management infrastructures to support our portfolios of rental homes. |
Three months ended September 30, 2016 | Three months ended September 30, 2015 | Nine months ended September 30, 2016 | Nine months ended September 30, 2015 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 9,590 | $ | 4,021 | $ | 24,242 | $ | 7,561 | |||||||
Change in unrealized gain on mortgage loans | (41,152 | ) | 27,499 | (155,306 | ) | 130,842 | |||||||||
Net realized gain on mortgage loans | 9,428 | 12,874 | 30,340 | 47,528 | |||||||||||
Net realized gain on mortgage loans held for sale | 19 | 100 | 50,166 | 505 | |||||||||||
Net realized gain on real estate | 26,307 | 13,914 | 94,833 | 36,926 | |||||||||||
Interest income | 209 | 115 | 425 | 595 | |||||||||||
Total revenues | 4,401 | 58,523 | 44,700 | 223,957 | |||||||||||
Expenses: | |||||||||||||||
Residential property operating expenses | 15,011 | 16,574 | 51,215 | 45,890 | |||||||||||
Real estate depreciation and amortization | 5,149 | 2,050 | 12,790 | 4,392 | |||||||||||
Acquisition fees and costs | 5,202 | 861 | 8,306 | 1,738 | |||||||||||
Selling costs and impairment | 11,570 | 10,705 | 50,003 | 34,235 | |||||||||||
Mortgage loan servicing costs | 7,792 | 13,477 | 27,960 | 47,989 | |||||||||||
Interest expense | 10,174 | 14,436 | 37,060 | 39,477 | |||||||||||
General and administrative | 2,500 | 2,286 | 9,100 | 8,509 | |||||||||||
Management fees | 4,658 | 4,988 | 14,234 | 25,039 | |||||||||||
Total expenses | 62,056 | 65,377 | 210,668 | 207,269 | |||||||||||
Other income (expense) | — | 1,518 | (750 | ) | 3,518 | ||||||||||
(Loss) income before income taxes | (57,655 | ) | (5,336 | ) | (166,718 | ) | 20,206 | ||||||||
Income tax (benefit) expense | (17 | ) | 27 | 106 | 53 | ||||||||||
Net (loss) income | $ | (57,638 | ) | $ | (5,363 | ) | $ | (166,824 | ) | $ | 20,153 | ||||
(Loss) earnings per share of common stock - basic: | |||||||||||||||
(Loss) earnings per basic share | $ | (1.06 | ) | $ | (0.09 | ) | $ | (3.05 | ) | $ | 0.35 | ||||
Weighted average common stock outstanding - basic | 54,178,129 | 57,056,625 | 54,722,828 | 57,154,734 | |||||||||||
(Loss) earnings per share of common stock - diluted: | |||||||||||||||
(Loss) earnings per diluted share | $ | (1.06 | ) | $ | (0.09 | ) | $ | (3.05 | ) | $ | 0.35 | ||||
Weighted average common stock outstanding - diluted | 54,178,129 | 57,056,625 | 54,722,828 | 57,351,014 | |||||||||||
Dividends declared per common share | $ | 0.15 | $ | 0.55 | $ | 0.60 | $ | 1.73 |
September 30, 2016 | December 31, 2015 | ||||||
Assets: | |||||||
Real estate held for use: | |||||||
Land | $ | 213,174 | $ | 56,346 | |||
Rental residential properties (net of accumulated depreciation of $17,615 and $7,127, respectively) | 866,903 | 224,040 | |||||
Real estate owned | 326,358 | 455,483 | |||||
Total real estate held for use, net | 1,406,435 | 735,869 | |||||
Real estate assets held for sale | 169,841 | 250,557 | |||||
Mortgage loans at fair value | 628,304 | 960,534 | |||||
Mortgage loans held for sale | 4,038 | 317,336 | |||||
Cash and cash equivalents | 56,890 | 116,702 | |||||
Restricted cash | 23,382 | 20,566 | |||||
Accounts receivable, net | 27,839 | 45,903 | |||||
Related party receivables | — | 2,180 | |||||
Prepaid expenses and other assets | 14,372 | 1,126 | |||||
Total assets | $ | 2,331,101 | $ | 2,450,773 | |||
Liabilities: | |||||||
Repurchase and loan agreements | $ | 1,182,677 | $ | 763,369 | |||
Other secured borrowings | 156,986 | 502,599 | |||||
Accounts payable and accrued liabilities | 52,114 | 32,448 | |||||
Related party payables | 4,926 | — | |||||
Total liabilities | 1,396,703 | 1,298,416 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Common stock, $0.01 par value, 200,000,000 authorized shares; 53,869,642 shares issued and outstanding as of September 30, 2016 and 55,581,005 shares issued and outstanding as of December 31, 2015 | 539 | 556 | |||||
Additional paid-in capital | 1,184,174 | 1,202,418 | |||||
Accumulated deficit | (250,315 | ) | (50,617 | ) | |||
Total equity | 934,398 | 1,152,357 | |||||
Total liabilities and equity | $ | 2,331,101 | $ | 2,450,773 |
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