10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

or

o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to            

Commission File Number 001-37560

SILVER BAY REALTY TRUST CORP.

(Exact name of registrant as specified in its charter)

Maryland	90-0867250
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
3300 Fernbrook Lane North, Suite 210 Plymouth, Minnesota	55447
(Address of principal executive offices)	(Zip Code)

(952) 358-4400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ý  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer x
Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No ý

As of November 2, 2015, there were 36,069,677 shares of common stock, par value $0.01 per share, outstanding.

SILVER BAY REALTY TRUST CORP.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2015

INDEX

Part I.	Financial Information
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months and Nine Months Ended September 30, 2015 and 2014 (unaudited)	4
	Condensed Consolidated Statement of Changes in Equity for the Nine Months Ended September 30, 2015 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2015 and 2014 (unaudited)	7
	Notes to the Condensed Consolidated Financial Statements (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	40
Part II.	Other Information
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	41
Signatures		42
Index to Exhibits		43

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q and its exhibits contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements may include statements about our projected operating results, our ability to successfully lease and operate acquired properties, including turnover rates, projected operating costs, estimates relating to our ability to make distributions to our stockholders in the future, market trends in our industry, real estate values and prices, and the general economy.

The forward-looking statements contained in this report reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed or implied in any forward-looking statement. We are not able to predict all of the factors that may affect future results. For a discussion of these and other factors that could cause our actual results to differ materially from any forward-looking statements, see the discussion on risk factors in Item 1A, "Risk Factors", and in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations", in this Quarterly Report on Form 10-Q and other risks and uncertainties detailed in this and our other reports and filings with the Securities and Exchange Commission ("SEC"). These risks, contingencies, and uncertainties include:

• Our ability to successfully employ a new and untested business model in a new industry with no proven track record;

• Failure to manage the Portfolio Acquisition (as defined below), including the integration of the properties acquired and to be acquired into our systems, effectively and efficiently;

• The availability of additional properties that meet our criteria and our ability to purchase such properties on favorable terms;

• Real estate appreciation or depreciation in our target markets and the supply of single-family homes in our target markets;

• General economic conditions in our target markets, such as changes in employment and household earnings and expenses or the reversal of population, employment, or homeownership trends in our target markets that could affect the demand for rental housing;

• Competition from other investors in identifying and acquiring single-family properties that meet our underwriting criteria and leasing such properties to qualified residents;

• Our ability to maintain high occupancy rates and to attract and retain qualified residents in light of increased competition in the leasing market for quality residents and the relatively short duration of our leases;

• Our ability to maintain rents at levels that are sufficient to keep pace with rising costs of operations;

• Lease defaults by our residents;

• Our ability to contain renovation, maintenance, marketing, and other operating costs for our properties;

• Our ability to continue to build our operational expertise and to establish our platform and processes related to residential management;

• Our dependence on key personnel to carry out our business and investment strategies and our ability to hire and retain skilled managerial, investment, financial, and operational personnel, and the performance of third-party vendors and service providers including third-party acquisition and management professionals, maintenance providers, leasing agents, and property management;

• Our ability to obtain additional capital or debt financing to expand our portfolio of single-family properties and our ability to repay our debt, including borrowings under our revolving credit facility and securitization loan and to meet our other obligations under our revolving credit facility and securitization loan;

• The accuracy of assumptions in determining whether a particular property meets our investment criteria, including assumptions related to estimated time of possession and estimated renovation costs and time frames, annual operating costs, market rental rates and potential rent amounts, time from purchase to leasing, and resident default rates;

• Our ability to accurately estimate the time and expense required to possess, renovate, repair, upgrade, and rent properties and to keep them maintained in rentable condition, and unforeseen defects and problems that require extensive renovation and capital expenditures;

• The concentration of our investments in single family properties which subject us to risks inherent in investments in a single type of property and seasonal fluctuations in rental demand;

1

• The concentration of our properties in our target markets, which increases the risk of adverse changes in our operating results if there were adverse developments in local economic conditions or the demand for single-family rental homes or natural disasters in these target markets; and

• Failure to qualify as a Real Estate Investment Trust ("REIT") or to remain qualified as a REIT, which will subject us to federal income tax as a regular corporation and could subject us to a substantial tax liability and compliance with the REIT distribution requirements.

The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this report. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable laws. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

2

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

Silver Bay Realty Trust Corp.

Condensed Consolidated Balance Sheets

(amounts in thousands except share data)

	September 30, 2015 (unaudited)			December 31, 2014
Assets
Investments in real estate:
Land	$	221,158		$	167,780
Building and improvements	990,405			780,590
	1,211,563			948,370
Accumulated depreciation	(65,534		)	(43,150		)
Investments in real estate, net	1,146,029			905,220
Assets held for sale	11,224			2,010
Cash and cash equivalents	41,026			49,854
Escrow deposits	23,028			20,211
Resident security deposits	12,331			8,595
In-place lease and deferred lease costs, net	730			688
Deferred financing costs, net	14,229			11,960
Other assets	6,105			3,842
Total assets	$	1,254,702		$	1,002,380
Liabilities and Equity
Liabilities:
Securitization loan, net of unamortized discount of $1,161 and $1,387, respectively	$	304,025		$	310,665
Revolving credit facility	344,254			67,096
Accounts payable and accrued property expenses	24,400			13,090
Resident prepaid rent and security deposits	13,957			9,634
Total liabilities	686,636			400,485
10% cumulative redeemable preferred stock at liquidation value, $0.01 par; 50,000,000 authorized, 1,000 issued and outstanding	1,000			1,000
Equity:
Stockholders’ equity:
Common stock $0.01 par; 450,000,000 shares authorized; 36,071,059 and 36,711,694, respectively, shares issued and outstanding	358			366
Additional paid-in capital	651,148			660,776
Accumulated other comprehensive loss	(1,589		)	(86		)
Cumulative deficit	(115,888		)	(94,593		)
Total stockholders’ equity	534,029			566,463
Noncontrolling interests - Operating Partnership	33,037			34,432
Total equity	567,066			600,895
Total liabilities and equity	$	1,254,702		$	1,002,380

See accompanying notes to the condensed consolidated financial statements.

3

Silver Bay Realty Trust Corp. Condensed Consolidated Statements of Operations and Comprehensive Loss (amounts in thousands except share data) (unaudited)
	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Revenue:
Rental income	$	29,919		$	19,361		$	81,184		$	55,821
Other income	698			613			1,869			1,436
Total revenue	30,617			19,974			83,053			57,257
Expenses:
Property operating and maintenance	6,529			4,787			16,479			12,537
Real estate taxes	3,918			2,732			11,864			8,011
Homeowners’ association fees	512			334			1,465			993
Property management	3,167			2,336			8,262			7,569
Depreciation and amortization	9,068			6,427			25,074			18,800
Advisory management fee - affiliates	—			2,251			—			6,621
Management internalization	—			39,179			—			39,179
Portfolio acquisition expense	66			—			2,046			—
General and administrative	3,973			2,157			12,071			7,323
Share-based compensation	718			259			1,895			716
Interest expense	5,959			3,741			15,307			8,710
Total expenses	33,910			64,203			94,463			110,459
Loss before other income (expense) and non-controlling interests	(3,293		)	(44,229		)	(11,410		)	(53,202		)
Other income (expense):
Net gain on disposition of real estate	2,089			84			2,320			161
Ineffectiveness of interest rate cap agreements	—			(480		)	—			(480		)
Other expense	(223		)	(245		)	(64		)	(684		)
Total other income (expense)	1,866			(641		)	2,256			(1,003		)
Net loss	(1,427		)	(44,870		)	(9,154		)	(54,205		)
Net loss attributable to noncontrolling interests - Operating Partnership	84			—			531			—
Net loss attributable to controlling interests	(1,343		)	(44,870		)	(8,623		)	(54,205		)
Preferred stock distributions	(25		)	(25		)	(75		)	(75		)
Net loss attributable to common stockholders	$	(1,368	)	$	(44,895	)	$	(8,698	)	$	(54,280	)
Loss per share - basic and diluted:
Net loss attributable to common shares	$	(0.04	)	$	(1.17	)	$	(0.24	)	$	(1.41	)
Weighted average common shares outstanding	36,071,146			38,315,231			36,257,449			38,440,421

See accompanying notes to the condensed consolidated financial statements.

4

Silver Bay Realty Trust Corp. Condensed Consolidated Statements of Operations and Comprehensive Loss (amounts in thousands except share data) (unaudited)
	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Comprehensive Loss:
Net loss	$	(1,427	)	$	(44,870	)	$	(9,154	)	$	(54,205	)
Other comprehensive loss:
Change in fair value of interest rate cap agreements	(1,014		)	15			(1,503		)	(208		)
Losses reclassified into earnings from other comprehensive (loss) income	—			481			—			481
Other comprehensive (loss) income	(1,014		)	496			(1,503		)	273
Comprehensive loss	(2,441		)	(44,374		)	(10,657		)	(53,932		)
Less comprehensive loss attributable to noncontrolling interests - Operating Partnership	84			—			531			—
Comprehensive loss attributable to controlling interests	$	(2,357	)	$	(44,374	)	$	(10,126	)	$	(53,932	)

See accompanying notes to the condensed consolidated financial statements.

5

Silver Bay Realty Trust Corp.

Condensed Consolidated Statement of Changes in Equity

(amounts in thousands except share data)

(unaudited)

	Common Stock								Accumulated  Other Comprehensive Loss						Total Stockholders’ Equity			Noncontrolling Interests - Operating Partnership
	Shares		Par Value Amount			Additional Paid-In Capital						Cumulative Deficit									Total Equity
Balance at January 1, 2015	36,711,694		$	366		$	660,776		$	(86	)	$	(94,593	)	$	566,463		$	34,432		$	600,895
Non-cash equity awards, net	134,031		—			1,826			—			—			1,826			—			1,826
Repurchase and retirement of common stock	(774,666	)	(8		)	(12,318		)	—			—			(12,326		)	—			(12,326		)
Dividends declared	—		—			—			—			(12,672		)	(12,672		)	—			(12,672		)
Net loss	—		—			—			—			(8,623		)	(8,623		)	(531		)	(9,154		)
Other comprehensive loss	—		—			—			(1,503		)	—			(1,503		)	—			(1,503		)
Adjustment to noncontrolling interests - Operating Partnership	—		—			864			—			—			864			(864		)	—
Balance at September 30, 2015	36,071,059		$	358		$	651,148		$	(1,589	)	$	(115,888	)	$	534,029		$	33,037		$	567,066

See accompanying notes to the condensed consolidated financial statements.

6

Silver Bay Realty Trust Corp. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited)
	Nine Months Ended   September 30,
	2015			2014
Cash Flows From Operating Activities:
Net loss	$	(9,154	)	$	(54,205	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	25,074			18,800
Non-cash management internalization	—			36,173
Non-cash share-based compensation	1,826			716
Losses reclassified into earnings from other comprehensive loss	—			481
Amortization and write-off of deferred financing costs	3,341			2,673
Amortization of discount on securitization loan	225			41
Net gain on disposition of real estate	(2,320		)	(161		)
Other	1,129			1,226
Net change in assets and liabilities:
(Increase) decrease in escrow cash for operating activities and debt reserves	(3,776		)	5,962
Increase in deferred lease fees and other assets	(3,733		)	(1,453		)
Increase in accounts payable, accrued property expenses, and prepaid rent	10,459			6,435
Decrease in related party payables, net	—			(7,611		)
Net cash provided by operating activities	23,071			9,077
Cash Flows From Investing Activities:
Purchase of investments in real estate	(272,679		)	(79,590		)
Capital improvements of investments in real estate	(20,698		)	(24,217		)
Increase (decrease) in escrow cash for investing activities	959			(1,587		)
Proceeds from disposition of real estate	21,063			5,406
Cash acquired in management internalization	—			2,067
Other	(43		)	(218		)
Net cash used by investing activities	(271,398		)	(98,139		)
Cash Flows From Financing Activities:
Proceeds from securitization loan	—			311,164
Payments on securitization loan	(6,866		)	(615		)
Proceeds from revolving credit facility	281,963			70,683
Paydown of revolving credit facility	(4,805		)	(235,508		)
Deferred financing costs paid	(5,783		)	(12,201		)
Purchase of interest rate cap agreements	(2,250		)	(393		)
Repurchase and retirement of common stock	(12,326		)	(14,711		)
Dividends paid	(10,434		)	(2,760		)
Net cash provided by financing activities	239,499			115,659
Net change in cash and cash equivalents	(8,828		)	26,597
Cash and cash equivalents at beginning of period	49,854			43,717
Cash and cash equivalents at end of period	$	41,026		$	70,314

See accompanying notes to the condensed consolidated financial statements.

7

Silver Bay Realty Trust Corp. Condensed Consolidated Statements of Cash Flows (amounts in thousands) (unaudited)
	Nine Months Ended   September 30,
	2015		2014
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$	11,397	$	5,978
Decrease in fair value of interest rate cap agreements	$	1,503	$	208
Noncash investing and financing activities:
Common stock and unit dividends declared, but not paid	$	4,572	$	1,514
Capital improvements in accounts payable	$	1,058	$	2,352
Non-cash management internalization transaction:
Issuance of units to noncontrolling units	$	—	$	36,173
Other liabilities acquired in management internalization	$	—	$	(2,067	)

See accompanying notes to the condensed consolidated financial statements.

8

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

Note 1.  Organization and Operations

Silver Bay Realty Trust Corp. ("Silver Bay" or the "Company"), is a Maryland corporation that focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States.

As of September 30, 2015, the Company owned 9,074 single-family properties, excluding assets held for sale, in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas.

As of April 1, 2015, the Company substantially completed the acquisition (the "Portfolio Acquisition") of the portfolio of properties from The American Home Real Estate Investment Trust ("TAH"), a Maryland corporation. During the nine months ended September 30, 2015, the Company acquired 2,456 properties (the “Acquired Properties”). The homes are primarily located in Atlanta, GA, Charlotte, NC, Tampa, FL, and Orlando, FL. See Note 3 for further description of this transaction.

In connection with its initial public offering the Company restructured its ownership to conduct its business through a traditional umbrella partnership ("UPREIT structure") in which substantially all of its assets are held by, and its operations are conducted through, Silver Bay Operating Partnership L.P. (the "Operating Partnership"), a Delaware limited partnership. The Company's wholly owned subsidiary, Silver Bay Management LLC, is the sole general partner of the Operating Partnership. As of September 30, 2015, the Company owned, through a combination of direct and indirect interests, 94.2% of the partnership interests in the Operating Partnership.

The Company has elected to be treated as a real estate investment trust ("REIT") for U.S. federal tax purposes, commencing with, and in connection with the filing of its federal tax return for, its taxable year ended December 31, 2012. As a REIT, the Company will generally not be subject to federal income tax on the taxable income that it distributes to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax at regular corporate rates. Even if it qualifies for taxation as a REIT, the Company may be subject to some federal, state and local taxes on its income or property. In addition, the income of any taxable REIT subsidiary ("TRS") that the Company owns will be subject to taxation at regular corporate rates.

Through September 30, 2014, the Company was externally managed by PRCM Real Estate Advisers LLC (the "Former Manager"). During this time, the Company relied on the Former Manager to provide or obtain on its behalf the personnel and services necessary for it to conduct its business as the Company had no employees of its own. On September 30, 2014, the Company closed a transaction to internalize its management (the "Internalization") and now owns all material assets and intellectual property rights of the Former Manager previously used in the conduct of its business and continues to be managed by officers and employees who worked for the Former Manager and who became employees of the Company as a result of the Internalization.

Note 2.  Basis of Presentation and Significant Accounting Policies

Consolidation and Basis of Presentation

The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), have been condensed or omitted according to such SEC rules and regulations. Management believes, however, that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2015 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 30, 2015 may not be indicative of the results for a full year.  

The accompanying condensed consolidated financial statements include the accounts of the Company and the Operating Partnership. The Company consolidates real estate partnerships and other entities that are not variable interest entities

9

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

when it owns, directly or indirectly, a majority voting interest in the entity or is otherwise able to control the entity. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions regarding future events that may affect the reported amounts and disclosures in the financial statements. The Company’s estimates are inherently subjective in nature and actual results could differ from these estimates.

Reclassifications

Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the previously reported results of operations or stockholders' equity.

Assets Held for Sale

The Company evaluates its long-lived assets on a regular basis to ensure the individual properties still meet its investment criteria. If the Company determines that an individual property no longer meets its investment criteria, a decision is made to dispose of the property. The property is subject to the Company’s impairment test and any losses are recognized immediately. The Company then markets the property for sale and classifies it as held for sale in the consolidated financial statements.

In 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which raises the threshold for disposals to qualify as discontinued operations. A discontinued operation is defined as: (1) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (2) an acquired business that is classified as held for sale on the acquisition date. ASU 2014-08 also requires additional disclosures regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The application of this guidance is prospective from the date of adoption and applies only to disposals (or new classifications to held for sale) that have not been reported as discontinued operations or held for sale in previously issued financial statements. The Company adopted ASU 2014-08 during the quarter ended March 31, 2015.

Equity Incentive Plan

The Company adopted an equity incentive plan which provides incentive compensation to attract and retain qualified directors, officers, advisors, consultants and other personnel of the Company. The plan permits the granting of stock options, restricted shares of common stock, restricted stock units, phantom shares, dividend equivalent rights, or other equity-based awards. The equity incentive plan is administered by the compensation committee of the Company’s board of directors. 

The cost of restricted shares of common stock awarded to independent directors is based on the fair market value of the Company’s stock as of the date of grant, in accordance with Codification Topic Compensation - Stock Compensation (“ASC 718”). Prior to the Internalization, the cost of restricted shares of common stock awarded to employees of the Former Manager and the Former Manager’s operating subsidiary were measured at each reporting date based on the price of the Company’s stock as of period end, in accordance with Codification Topic Equity (“ASC 505”). On the date of the Internalization, the employees of the Former Manager and the Former Manager's operating subsidiary became employees of the Company and the Company fixed the measurement of the awards to the respective employees to the stock price as of such date in accordance with ASC 718. The respective awards will not be subsequently remeasured and future awards to employees, subsequent to the Internalization, will be measured based on the price of the Company's stock as of the date of grant in accordance with ASC 718.  All restricted stock awards are amortized ratably over the applicable service period.

The Company recognizes compensation expense for performance stock units ("PSU") based on the grant-date fair value and the service period of the respective awards. These units represent shares potentially issuable in the future based upon

the Company's stock performance over a three-year performance period. Fair value of the PSU's are estimated using a Monte-Carlo simulation model.

10

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

Recent Accounting Pronouncements

Under the Jumpstart Our Business Startups Act (the "JOBS Act"), the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.

The Company considers the applicability and impact of all accounting standard updates ("ASUs"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial position or results of operations.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for interim or annual periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption. Early adoption of this standard is only allowed as of the original effective date, annual periods beginning after December 15, 2016. The Company is currently evaluating the impact the adoption of Topic 606 will have on its consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. This update is intended to improve targeted areas of consolidation guidance by simplifying the consolidation evaluation process, and by placing more emphasis on risk of loss when determining a controlling financial interest. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs for term debt in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The impact will be a reduction of other assets and the associated reported debt liability related to the securitization loan.

Note 3. Investments in Real Estate

Acquisition of The American Home Real Estate Investment Trust, Inc. Portfolio

As of April 1, 2015, the Company substantially completed the Portfolio Acquisition of the portfolio of properties from TAH. During the nine months ended September 30, 2015, the Company acquired 2,456 properties from TAH. The aggregate purchase price for the Portfolio Acquisition was $263,000.The Portfolio Acquisition was financed using proceeds obtained under the Company's revolving credit facility, which was amended and restated on February 18, 2015 to increase the borrowing capacity to $400,000 from $200,000 (see Note 4). The homes are primarily located in Atlanta, GA, Charlotte, NC, Tampa, FL, and Orlando, FL. Information regarding the Portfolio Acquisition is detailed in these notes to the Company’s condensed financial statements reflect the full acquisition of the portfolio.

The purchase price included a holdback of $7,890, which is held by a third-party escrow agent on TAH's behalf under the terms of an escrow agreement and will be used to satisfy any claims by the Company made within 15 months of the closing date, including for breach by TAH or certain of its subsidiaries under the purchase agreement.     

The Company also incurred $66 and $2,046 in transaction expenses associated with the Portfolio Acquisition in the three and nine months ended September 30, 2015. These costs are expensed as incurred in accordance with Codification Topic 805 Business Combinations and are included in portfolio acquisition expense in the condensed consolidated statements of operations and comprehensive loss.

11

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

The following table summarizes the acquisition date fair values of the assets and liabilities acquired as part of the Portfolio Acquisition:

Land	$	55,684
Buildings and improvements	207,316
Estimated fair value of assets and liabilities acquired	$	263,000

These preliminary allocations are subject to revision within the measurement period, not to exceed one year from the date of the Portfolio Acquisition.

The following table illustrates the effect on net income, earnings per share - basic and diluted as if the Company had completed the Portfolio Acquisition on January 1, 2014:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Revenue (1)	$	30,617		$	26,113		$	89,668		$	74,854
Net loss (1) (2) (3)	$	(1,361	)	$	(47,437	)	$	(9,296	)	$	(65,126	)
Net loss attributable to common shareholders (1) (2) (3)	$	(1,302	)	$	(47,462	)	$	(8,840	)	$	(65,201	)
Loss per share - basic and diluted (1) (2) (3)	$	(0.04	)	$	(1.24	)	$	(0.24	)	$	(1.70	)
Common shares outstanding	36,071,146			38,315,231			36,257,449			38,440,421

⁽¹⁾ The unaudited pro forma information includes revenue and operating expenses based on the historical operations of TAH as well the Company and does not purport to be indicative of what the Company's operating results would have been had the Portfolio Acquisition occurred on January 1, 2014.

⁽²⁾ Assumes portfolio acquisition expense for the three and nine months ended September 30, 2015 had been incurred on January 1, 2014, and thus is included in the nine months ended September 30, 2014.

⁽³⁾ Includes net gain on disposition of real estate as noted in the condensed consolidated statements of operations and comprehensive loss.

Sale of Real Estate Assets

During the three and nine months ended September 30, 2015, the Company sold its Houston portfolio along with certain other properties for an aggregate sales price of $18,356 and $21,063, respectively, resulting in an aggregate net gain of $2,089 and $2,320, respectively, which has been classified as net gain on disposition of real estate in the condensed consolidated statements of operations and comprehensive loss. In connection with these asset sales, certain debt repayments were made that are more fully described in Note 4. In accordance with ASC 2014-08, the disposals were not considered a discontinued operation. Any holding costs associated with homes being sold are reflected within held for sale expenses and are classified as other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

During the three and nine months ended September 30, 2014, the Company sold certain properties for an aggregate sales price of $1,972 and $5,406, respectively, resulting in an aggregate net gain of $84 and $161, respectively.

In connection with assets held for sale, the Company recognized $14 and $46 in impairment charges for the three and nine months ended September 30, 2015 and $197 and $591 in impairment charges for the three and nine months ended September 30, 2014 classified within other income (expense).

12

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

Note 4.  Debt

Securitization Loan

On August 12, 2014, the Company completed a securitization transaction (the "Securitization Transaction") in which it received gross proceeds of $311,164, net of an original issue discount of $1,503 and before issuance costs and reserves. The Securitization Transaction involved the issuance and sale of six classes of single-family rental pass-through certificates (the "Certificates") that represent beneficial ownership interests in a loan secured by 3,084 single-family properties (the "Securitization Properties") sold to one of the Company's affiliates from its portfolio. In the Securitization Transaction, the Company sold $312,667 of pass-through certificates, with a blended effective interest rate of the London Interbank Offered Rate ("LIBOR") plus 1.92%, inclusive of the amortization of the original issue discount, plus monthly servicing fees of 0.1355% per tranche. The original issue discount will be accreted and recognized to interest expense through the fully extended maturity date of September 9, 2019.

As part of the Securitization Transaction, a newly-formed special purpose entity (the "Borrower") entered into a loan agreement (the "Securitization Loan"). The Borrower is wholly owned by another special purpose entity (the "Equity Owner"). The Securitization Loan was subsequently deposited into a trust in exchange for the pass-through certificates. The Securitization Loan has an initial term of two years, with three, 12-month extension options, resulting in a fully extended maturity date of September 9, 2019. The Company used the proceeds of the Securitization Loan to pay down the balance of Company's revolving credit facility at closing and the remaining proceeds were used for working capital and other corporate purposes, including the acquisition, financing and renovation of properties and the repurchase of common stock. During the nine months ended September 30, 2015, the Company paid down $6,866 on the Securitization Loan to effect the release of certain properties from the first priority mortgages securing the Securitization Loan, including those properties in the Houston portfolio as described in Note 3.

The Securitization Loan requires monthly payments of interest and is comprised of six floating rate components computed based on one month LIBOR for each interest period plus a fixed component spread for each of the six components, resulting in a blended effective interest rate of LIBOR plus 1.94% at September 30, 2015, as a result of the pay down as noted above, inclusive of the amortization of the original issue discount (described below), plus monthly servicing fees of 0.1355%. The principal amount of each component of the loan corresponds to the respective class of Certificates. In connection with entering into the loan, the Company recorded $311,164 as securitization loan in the accompanying condensed consolidated balance sheets. The original issue discount (the difference between the $312,667 balance of certificates sold and the gross proceeds of $311,164) is accreted and recognized to interest expense through the fully extended maturity date of September 9, 2019. In the three and nine months ended September 30, 2015, the Company incurred gross interest expense of $1,706 and $5,081, respectively, excluding amortization of the discount and deferred financing costs and before the effect of capitalizing interest related to property renovations. In the three and nine months ended September 30, 2014, the Company incurred gross interest expense of $914 for both the three and nine months ended September 30, 2014, excluding amortization of the discount and deferred financing costs and before the effect of capitalizing interest related to property renovations. As of September 30, 2015 and December 31, 2014, the loan had a weighted-average interest rate of 2.18% and 2.11%, respectively, which is inclusive of the monthly servicing fees, but excludes amortization of the original issue discount and deferred financing costs.

All amounts outstanding under the Securitization Loan are secured by first priority mortgages on the Securitization Properties in addition to the equity interests in, and certain assets of, the Borrower. The amounts outstanding under the Securitization Loan and certain obligations contained therein are guaranteed by the Operating Partnership only in the case of certain bad acts (including bankruptcy) as outlined in the transaction documents. The Borrower and Equity Owner are separate legal entities, but continue to be reported in the Company’s consolidated financial statements. As long as the Securitization Loan is outstanding, the assets of the Borrower and Equity Owner are not available to satisfy the debts and obligations of the Company or its other consolidated subsidiaries, and the liabilities of the Borrower and Equity Owner are not liabilities of the Company (excluding, for this purpose, the Borrower and Equity Owner) or its other consolidated subsidiaries. The Company is permitted to receive distributions from the Borrower out of unrestricted cash as long as the Borrower is current with all payments and in compliance with all other obligations under the Securitization Loan.

The Securitization Loan provides for the restriction of cash whereby the Company must set aside funds for payment of property taxes, capital expenditures and other reserves associated with the Securitization Properties. As of September 30, 2015 and December 31, 2014, the Company had $4,055 and $4,635, respectively, included in escrow deposits associated with the

13

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

required reserves. The Securitization Loan does not contractually restrict the Company's ability to pay dividends but certain covenants contained therein may limit the amount of cash available for distribution. The Securitization Loan documents require the Company to maintain certain covenants, including a minimum debt yield on the Securitization Properties, and contain customary events of default for a loan of this type, including payment defaults, covenant defaults, breaches of representations and warranties, bankruptcy and insolvency, judgments and cross-default with certain other indebtedness. In the event of default, the lender may apply funds, as the lender elects, from a cash management account controlled by the lender for the collection of all rents and cash generated by the Borrower's properties, foreclose on its security interests, appoint a new property manager, and in limited circumstances, enforce the Company's guaranty. In addition, as of September 30, 2015 and December 31, 2014, the cash management account had a balance of $2,786 and $3,542, respectively, classified as escrow deposits on the condensed consolidated balance sheets. As of September 30, 2015 and December 31, 2014, the Company was in compliance with all financial covenants.

Revolving Credit Facility

Certain of the Company's subsidiaries have a revolving credit facility (the "revolving credit facility") with a syndicate of banks. On February 18, 2015, the Company amended and restated the revolving credit facility to increase the borrowing capacity to $400,000 from $200,000 and subsequently amended the revolving credit facility to address certain interest calculation mechanics. As amended, the revolving credit facility bears interest at a varying rate of LIBOR plus 300 basis points with a LIBOR floor of 0.0%. Prior to the amendment, the revolving credit facility bore interest at varying rates of LIBOR plus 3.5% subject to a LIBOR floor of 0.5%. The Company is also required to pay a monthly fee on the unused portion of the revolving credit facility at a rate of 0.5% per annum, when the balance outstanding is less than $200,000, or 0.3% per annum when the balance outstanding is equal to or greater than $200,000.  As part of the amendment, the term of the revolving credit facility was extended to February 18, 2018 and the advance rate for borrowings was increased to 65% from 55%. The advance rate is based on the aggregate value of the eligible properties which value is calculated as the lesser of (a) the third-party broker price opinion value or (b) the original purchase price plus certain renovation and other capitalized costs of the properties. The Company used proceeds from the revolving credit facility to fund the Portfolio Acquisition. The remaining proceeds were used for working capital and other corporate purposes, including the acquisition, financing and renovation of properties.

As of September 30, 2015 and December 31, 2014, $344,254 and $67,096, respectively, was outstanding under the revolving credit facility. During the nine months ended September 30, 2015, the Company paid down $4,805 on the revolving credit facility to effect the release of certain properties, including those properties in the Houston portfolio as described in Note 3.

The interest rate on the revolving credit facility as of September 30, 2015 and 2014 was 3.4% and 4.0%, respectively. In the three and nine months ended September 30, 2015, the Company incurred $2,989 and $6,898, respectively, in gross interest expense on the revolving credit facility, excluding amortization of deferred financing costs, before the effect of capitalizing interest related to property renovations and interest expense related to the interest rate cap agreements. In the three and nine months ended September 30, 2014, the Company incurred $1,302 and $5,549, respectively, in gross interest expense on the revolving credit facility, excluding amortization of deferred financing costs, before the effect of capitalizing interest related to property renovations and interest expense related to the interest rate cap agreements.

All amounts outstanding under the revolving credit facility are collateralized by the equity interests and assets of certain of the Company’s subsidiaries ("Pledged Subsidiaries"), which exclude the Securitization Properties. The amounts outstanding under the revolving credit facility and certain obligations contained therein are guaranteed by the Company and the Operating Partnership only in the case of certain bad acts (including bankruptcy) and up to $20,000 for completion of certain property renovations, as outlined in the credit documents.

The Pledged Subsidiaries are separate legal entities, but continue to be reported in the Company’s consolidated financial statements. As long as the revolving credit facility is outstanding, the assets of the Pledged Subsidiaries are not available to satisfy the other debts and obligations of the Pledged Subsidiaries or the Company. However, the Company is permitted to receive distributions from the Pledged Subsidiaries as long as the Company and the Pledged Subsidiaries are current with all payments and in compliance with all other obligations under the revolving credit facility.

The revolving credit facility does not contractually restrict the Company’s ability to pay dividends but certain covenants contained therein may limit the amount of cash available for distribution. For example, in the final year of the revolving credit facility, all cash generated by the properties in the Pledged Subsidiaries must be used to pay down the principal

14

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

amount outstanding under the revolving credit facility. The revolving credit facility requires the Company to meet certain quarterly financial tests pertaining to net worth, total liquidity, debt yield and debt service coverage ratios, as defined by the revolving credit facility agreement. The Company must maintain at all times total liquidity of $25,000 and a net worth of at least $125,000, in each case as determined in accordance with the revolving credit facility agreement. As of September 30, 2015, and December 31, 2014, the Company was in compliance with all financial covenants. The revolving credit facility also provides for the restriction of cash whereby the Company must set aside funds for payment of insurance, property taxes and certain property operating and maintenance expenses associated with properties in the Pledged Subsidiaries' portfolios. As of September 30, 2015 and December 31, 2014, the Company had $15,950 and $6,457, respectively, included in escrow deposits associated with the required reserves. The revolving credit facility also contains customary events of default for a facility of this type, including payment defaults, covenant defaults, breaches of representations and warranties, bankruptcy and insolvency, judgments, change of control and cross-default with certain other indebtedness.

Deferred Financing Costs

Costs incurred in the placement of the Company’s debt are being amortized using the straight-line method, which approximates the effective interest method, over the terms of the related debt. Amortization of deferred financing costs is recorded as interest expense in the accompanying condensed consolidated statements of operations and comprehensive loss.  

In connection with its Securitization Loan, the Company incurred deferred financing costs of $0 and $460 for the three and nine months ended September 30, 2015. The costs are being amortized through September 9, 2019, the fully extended maturity date of the Securitization Loan. Amortization of the deferred financing costs was $585 and $1,752 for the three and nine months ended September 30, 2015 and $302 for both the three and nine months ended September 30, 2014. In conjunction with the pay down of the Securitization Loan related to the sale of the Houston portfolio, the Company wrote off $174 in deferred financing costs for both the three and nine months ended September 30, 2015, which has been included in net gain on disposition of real estate in the condensed consolidated statements of operations and comprehensive loss.

In connection with its revolving credit facility, the Company incurred deferred financing costs of $21 and $5,323 for the three and nine months ended September 30, 2015 and $28 and $1,726 for the three and nine months ended September 30, 2014, respectively. Amortization of the deferred financing costs was $582 and $1,558 for the three and nine months ended September 30, 2015 and $345 and $1,313 for three and nine months ended September 30, 2014, respectively.

Interest Rate Cap Agreements

The variable rate of interest on the Company's debt exposes the Company to interest rate risk. The Company seeks to manage this risk through the use of interest rate cap agreements.

As of December 31, 2014, the Company held four interest rate cap agreements, including three interest rate cap agreements with an aggregate notional amount of $245,000, LIBOR caps of 3.00%, and termination dates of May 10, 2016 associated with the revolving credit facility, and one interest rate cap with a notional amount of $312,667, a LIBOR cap of 3.1085%, and a termination date of September 15, 2016 associated with the Securitization Loan.

On January 28, 2015, the Company entered into a forward-starting interest rate cap agreement associated with the Securitization Loan at a purchase price of $1,383. The interest rate cap has an effective date of September 15, 2016, a termination date of September 15, 2019, a notional amount of $200,000, and a LIBOR cap rate of 3.1085%.

In conjunction with the amendment to the revolving credit facility executed on February 18, 2015, the Company sold the existing interest rate cap agreements associated with such facility for an aggregate sales price of $4 and entered into a new interest rate cap agreement with a notional amount of $83,000, a LIBOR cap of 3.0%, and a termination date of February 17, 2018, at a purchase price of $272.

On March 31, 2015, the Company entered into an interest rate cap associated with the revolving credit facility at a purchase price of $595. The interest rate cap has an effective date of March 31, 2015, a termination date of February 18, 2018, a notional amount of $266,100, and a LIBOR cap rate of 3.0%.

The Company determined that the interest rate caps purchased in the nine months ended September 30, 2015 qualify for hedge accounting and, therefore, designated the derivatives as cash flow hedges with future changes in fair value recognized

15

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

through other comprehensive loss (see Note 9). Ineffectiveness is calculated as the amount by which the change in fair value of the derivatives exceeds the change in the fair value of the anticipated cash flows related to the corresponding debt.

Capitalized Interest

The Company capitalizes interest for properties undergoing renovation activities and purchased subsequent to the Company obtaining debt in May 2013. Capitalized interest totaled $0 and $311 for the three and nine months ended September 30, 2015, respectively, and $251 and $497 for the three and nine months ended September 30, 2014, respectively.

Note 5. Equity Incentive Plan

Restricted Stock Awards

On February 12, 2015, the Company issued, in aggregate, 69,605 shares of restricted common stock to certain officers of the Company. The estimated fair value of these awards was $15.72 per share, based upon the closing price of the Company’s stock on the grant date. These grants will vest in one year commencing on the date of the grant, as long as such individual is an employee on the vesting date.

On February 13, 2015, the Company issued, in aggregate, 56,385 shares of restricted common stock to certain personnel of the Company. The estimated fair value of these awards was $15.67 per share, based upon the closing price of the Company’s stock on the grant date. These grants will vest annually in three equal installments commencing on the date of the grant, as long as such individual is an employee on the vesting date.

On May 20, 2015, the Company awarded each of its independent directors an equity retainer in the form of an award of restricted stock with a fair market value of $50 through the issuance of 16,110 total shares. This annual equity retainer for such independent directors will vest as to all of such shares on the earlier of (i) the one year anniversary of the date of grant and (ii) the date immediately preceding the date of the Company’s next annual meeting of stockholders, subject in each case, to the independent director’s continued service to the Company through the vesting date.

Performance Stock Units

On February 12, 2015, the Company granted 165,000 performance stock units to certain members of executive and senior management under its equity incentive plan. Each PSU represents the potential to receive Silver Bay common stock after the completion of three years of service from the date of grant. The number of shares of Silver Bay common stock to be earned as of the vesting date for each PSU increases and decreases based on Silver Bay's total stockholder return (stock price appreciation plus dividends) ("TSR"). The number of shares of common stock is determined by multiplying the target number of PSUs by the TSR multiplier, determined in accordance with the following table:

Annualized TSR	TSR Multiplier
6.5%	—%
8%	50%
10%	100%
12%	150%
16%	200%

To the extent the Company's annualized TSR falls between two discrete points, linear interpolation shall be used to determine the TSR multiplier. Additionally, each PSU contains one dividend equivalent right, which is equal to the cash dividend that would have been paid on the PSU had the PSU been an issued and outstanding common share on the record date for the dividend and is payable in additional shares if the market and service conditions are met.

16

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

The Company utilized a Monte-Carlo simulation to calculate the weighted-average grant date fair value of $7.00 per unit, using the following assumptions:

Expected volatility (1)	17.55		%
Dividend assumption (2)	—		%
Expected term in years	3.00
Risk-free rate	1.02		%
Stock price (per share) (3)	$	15.72
Beginning average stock price (per share) (4)	$	16.06

(1) Expected volatility is calculated as a 50.0% relative weighting of the Company's historical volatility of 15.54% (over the period from August 1, 2013 through the date of grant of the PSUs) and a 50.0% relative weighting on the implied volatility of 19.55%.

(2) An assumed dividend yield of 0% is the mathematical equivalent to the reinvestment of dividends, which is consistent with the TSR definition described above.

(3) Based on the closing price of the Company's common stock on February 12, 2015.

(4) Based on the 30 trading days ended on February 12, 2015.

During the three and nine months ended September 30, 2015, the Company recognized non-cash performance-based stock unit expense of $96 and $243, which is included within share-based compensation in the condensed consolidated statements of operations and comprehensive loss. Unrecognized compensation expense at September 30, 2015 was $912, which is expected to be recognized over the remaining three-year service period of the PSUs.

Note 6.  Stockholders’ Equity

Common Stock

On July 1, 2013, the Company’s board of directors authorized the Company to repurchase up to 2,500,000 shares of its common stock through a share repurchase program. On November 25, 2014, the Company's board of directors authorized an increase of 2,500,000 shares to the previously authorized share repurchase program for a total of 5,000,000 shares. Shares may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, or by any combination of such methods. The manner, price, number and timing of share repurchases will be subject to a variety of factors, including market conditions and applicable SEC rules.

In the nine months ended September 30, 2015, the Company repurchased and retired 770,417 shares under the program for a total cost of $12,260, at an average purchase price of $15.91, inclusive of commissions.

17

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

Common Stock Dividends

The following table presents cash dividends declared by the Company on its common stock during the three months ended September 30, 2015, and the six immediately preceding quarters:

Declaration Date	Record Date	Payment Date	Cash Dividend per Share
September 25, 2015	October 6, 2015	October 16, 2015	$	0.12
June 17, 2015	June 29, 2015	July 10, 2015	0.12
March 25, 2015	April 6, 2015	April 17, 2015	0.09
December 18, 2014	December 29, 2014	January 9, 2015	0.06
September 4, 2014	September 22, 2014	October 3, 2014	0.04
June 19, 2014	June 30, 2014	July 11, 2014	0.03
March 13, 2014	March 24, 2014	April 4, 2014	0.03

Preferred Stock Dividends

The following table presents cash dividends declared by the Company on its 10% cumulative redeemable preferred stock during the three months ended September 30, 2015, and the six immediately preceding quarters:

Declaration Date	Payment Date	Cash Dividend per Share
September 29, 2015	October 16, 2015	$	26.67
June 17, 2015	June 30, 2015	23.06
March 25, 2015	April 17, 2015	27.22
January 9, 2015	January 9, 2015	26.67
October 3, 2014	October 3, 2014	22.78
June 25, 2014	June 30, 2014	26.94
April 2, 2014	April 4, 2014	23.33

Note 7.  Earnings (Loss) Per Share

The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share ("EPS") for the three and nine months ended September 30, 2015 and 2014: 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss attributable to controlling interests	$	(1,343	)	$	(44,870	)	$	(8,623	)	$	(54,205	)
Preferred stock distributions	(25		)	(25		)	(75		)	(75		)
Net loss attributable to common stockholders	$	(1,368	)	$	(44,895	)	$	(8,698	)	$	(54,280	)
Basic and diluted weighted average common shares outstanding	36,071,146			38,315,231			36,257,449			38,440,421
Net loss per common share - basic and diluted	$	(0.04	)	$	(1.17	)	$	(0.24	)	$	(1.41	)

A total of 2,231,511 common units not owned by the Company were outstanding for the three and nine months ended September 30, 2015, but have been excluded from the calculation of diluted EPS as their inclusion would not be dilutive. In addition, 165,000 PSUs have been excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2015, as the requisite performance conditions had not been met as of such date.

18

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

Note 8.  Related Party Transactions

Management Internalization Transaction

On September 30, 2014, the Company closed the Internalization after receiving the required stockholder approval for the transaction. The Internalization was completed under the terms of a contribution agreement (the "Contribution Agreement") among the Company, Pine River Domestic Management L.P., Provident, the Former Manager, and the Operating Partnership, pursuant to which the Company acquired the Former Manager in exchange for 2,231,511 common units of the Operating Partnership. These common units are redeemable for cash or, at the Company's election, the Company's common shares on a one-for-one basis.

The Contribution Agreement included a net worth adjustment, payable in cash, in the event that the closing net worth of the Former Manager was greater or less than $0 after making an adjustment to exclude any liabilities for accrued bonus compensation payable to the Chief Executive Officer and personnel providing data analytics directly supporting the investment function of the Company. The Company settled the net worth adjustment on September 30, 2014 based on estimated amounts. The Company finalized the net worth adjustment in the fourth quarter of 2014 and the settlement was de minimus. As a result of this transaction, as of September 30, 2014, the Company no longer pays fees or expense reimbursements to the Former Manager or the Former Manager's operating subsidiary.

The Company recognized $39,179 in the third quarter of 2014 in connection with the Internalization, which is recorded as management internalization expense in the accompanying condensed consolidated statements of operations and comprehensive loss. The Internalization expense primarily consists of the issuance of the 2,231,511 common units of the Operating Partnership with a fair value of $36,173, based on the stock price on the date of closing of $16.21. The issuance of the common units was recognized as a one-time expense as it represented the cost of terminating the advisory management fee agreement. The remaining amounts in management internalization were attributable to transaction fees and expenses, and the assumption of certain liabilities in connection with the transaction. The Company acquired cash of $2,067 and other net liabilities of $2,067 in the transaction.

Upon Internalization, the Company assumed net operating losses and a deferred tax asset of the Former Manager's operating subsidiary of $1,508, which expire through 2032. The Company recorded a deferred tax asset of $623, which was fully offset by a valuation allowance due to the uncertainty in forecasting future taxable income of this entity. The Company elected to have this new entity be treated for tax purposes as a taxable REIT subsidiary.

Advisory Management Agreement

On September 30, 2014, the Company closed the Internalization after receiving the required stockholder approval for the transaction. Prior to the Internalization, the Company and the Former Manager maintained an advisory management agreement whereby the Former Manager designed and implemented the Company’s business strategy and administered its business activities and day-to-day operations, subject to oversight by the Company’s board of directors. In exchange for these services, the Former Manager earned a fee equal to 1.5% per annum, or 0.375% per quarter, of the Company’s daily average fully diluted market capitalization, as defined by the management agreement, calculated and payable quarterly in arrears. The fee was reduced for the 5% property management fee (described below) received by the Former Manager’s operating subsidiary or its affiliates under the property management and acquisition services agreement. The Company also reimbursed the Former Manager for all expenses incurred on its behalf or otherwise in connection with the operation of its business, other than compensation for the Chief Executive Officer and personnel providing data analytics directly supporting the investment function.

During the three and nine months ended September 30, 2014, the Company expensed $2,251 and $6,621 in advisory management fees, net of the reduction for the 5% property management fee described below.

The Company also reimbursed the Former Manager for certain general and administrative expenses, primarily related to employee compensation and certain office costs. Direct and allocated costs incurred by the Former Manager on behalf of the Company totaled $1,777 and $5,476 for the three and nine months ended September 30, 2014.

19

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

Property Management and Acquisition Services Agreement

Prior to the Internalization, the Company and the Former Manager’s operating subsidiary maintained a property management and acquisition services agreement pursuant to which the Former Manager’s operating subsidiary acquired and managed single-family properties on the Company’s behalf. For these services, the Company reimbursed the Former Manager’s operating subsidiary for all direct expenses incurred in the operation of its business, including the compensation of its employees. The Former Manager’s operating subsidiary also received a property management fee equal to 5% of certain costs and expenses incurred by it in the operation of its business that were reimbursed by the Company. Prior to the Internalization, this 5% property management fee reduced the advisory management fee paid to the Former Manager on a dollar-for-dollar basis. Upon Internalization, the Former Manager's operating subsidiary performing these services was acquired.

During the three and nine months ended September 30, 2014, the Company incurred property management expense of $2,336 and $7,569, respectively. These amounts included direct expense reimbursements of $1,717 and $5,120, respectively, and the 5% property management fee of $97 and $288, respectively. The remaining amounts in property management fees of $522 and $2,161, respectively, were incurred to reimburse the Former Manager's operating subsidiary for expenses payable to third-party property managers and direct property management type expenses. In addition, the Company incurred charges with the Former Manager's operating subsidiary of $220 and $608, respectively, in acquisitions and renovation fees, which the Company capitalized as part of property acquisition and renovation costs of $0 and $11, respectively, for leasing services, which are reflected as other assets and amortized over the life of the leases.

Note 9.  Derivative and Other Fair Value Instruments

Codification Topic Fair Value Measurement (“ASC 820”) established a three level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

Level 1 — Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Recurring Fair Value

The Company uses interest rate cap agreements to manage its exposure to interest rate risk (refer to Note 4). The interest rate cap agreements are valued using models developed by the respective counterparty that use as their basis readily observable market parameters (such as forward yield curves).

The following tables provide a summary of the aggregate fair value measurements for the interest rate cap agreements and the location within the condensed consolidated balance sheets at September 30, 2015 and December 31, 2014, respectively:

				Fair Value Measurements at Reporting Date Using
Description	Balance Sheet Location	September 30, 2015		Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1)		Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2)		Significant Unobservable Inputs (Level 3)
Interest Rate Caps (cash flow hedges)	Other Assets	$	803	$	—	$	803	$	—

20

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

				Fair Value Measurements at Reporting Date Using
Description	Balance Sheet Location	December 31, 2014		Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1)		Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2)		Significant Unobservable Inputs (Level 3)
Interest Rate Caps (cash flow hedges)	Other Assets	$	58	$	—	$	58	$	—
Interest Rate Caps (not designated as hedging instruments)	Other Assets	13		—		13		—
Total		$	71	$	—	$	71	$	—

The following table provides a summary of the effect of cash flow hedges on the Company's condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2015:

	Effective Portion							Ineffective Portion
Type of Cash Flow Hedge	Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative			Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Interest Rate Caps	$	(1,503	)	Interest Expense	$	(1	)	Ineffectiveness of Interest Rate Cap Agreements	$	—

The following table provides a summary of the effect of cash flow hedges on the Company's condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2014:

	Effective Portion							Ineffective Portion
Type of Cash Flow Hedge	Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative			Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Interest Rate Caps	$	(208	)	Interest Expense	$	(1	)	Ineffectiveness of Interest Rate Cap Agreements	$	(480	)

As of September 30, 2015 and December 31, 2014, there were $1,589 and $86, respectively, in deferred losses in accumulated other comprehensive loss related to interest rate cap agreements. The Company expects to recognize $181 in interest expense during the twelve months ending September 30, 2016, which will be reclassified out of accumulated other comprehensive loss in accordance with the amortization schedules established upon designation of the interest rate caps as cash flow hedges. During the nine months ended September 30, 2015, the Company recorded $9 in losses as interest expense related to the change in fair value of interest rate caps not designated as cash flow hedges.

Nonrecurring Fair Value

For long-lived assets held for sale, an impairment loss is recognized when the estimated fair value of the asset, less the estimated cost to sell, is less than the carrying amount of the asset at the time the Company has determined to sell the asset. Assets held for sale are valued based on comparable sales data, less estimates of third-party broker commissions, which are based on market convention (see Note 2). These impairment measurements constitute nonrecurring fair value measures under ASC 820 and the inputs are characterized as Level 2.

21

SILVER BAY REALTY TRUST CORP.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Three and Nine Months Ended September 30, 2015

(amounts in thousands, except share data and property counts)

Fair Value of Other Financial Instruments

In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the condensed consolidated balance sheets, for which fair value can be estimated.  The following describes the Company’s methods for estimating the fair value for financial instruments. Descriptions are not provided for those items that have zero balances as of September 30, 2015.

• Cash and cash equivalents, escrow deposits, resident prepaid rent and security deposits, resident rent receivable (included in other assets), accounts payable, and accrued property expenses have carrying values which approximate fair value because of the short-term nature of these instruments. The Company categorizes the fair value measurement of these assets and liabilities as Level 1.

• The Company’s revolving credit facility has a floating interest rate based on an index plus a spread and the credit spread is consistent with those demanded in the market for facilities with similar risk and maturities. As the revolving credit facility was amended and restated on February 18, 2015, the interest rate on this borrowing is at market as of September 30, 2015 and thus, the carrying value of the debt approximates fair value. The Company categorizes the fair value measurement of this liability as Level 2.

• The fair value of the Company's Securitization Loan was $296,821as of September 30, 2015, based on an average of market quotations. The Company categorizes the fair value measurement of this liability as Level 2.

• The Company’s 10% cumulative redeemable preferred stock had a fair value which approximates its liquidation value at September 30, 2015. The Company categorizes the fair value measurement of this instrument as Level 2.

Note 10.  Commitments and Contingencies

Concentrations

As of September 30, 2015, approximately 58% of the Company’s properties were located in Atlanta, GA, Phoenix, AZ, and Tampa, FL, which exposes the Company to greater economic risks than if the Company owned a more geographically dispersed portfolio.

Resident Security Deposits

As of September 30, 2015, the Company had $12,331 in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease.

Earnest Deposits

Escrow deposits include non-refundable cash or earnest deposits for the purchase of properties. As of September 30, 2015, the Company had earnest deposits for property purchases of $31. As of September 30, 2015, for properties acquired through individual broker transactions and the remaining Portfolio Acquisition properties, which involve submitting a purchase offer, the Company had offers accepted to purchase residential properties for an aggregate amount of $1,075. Not all of the properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons and the escrow deposits may be lost.

Legal and Regulatory

From time to time, the Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company's business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material adverse effect on the Company's condensed consolidated financial statements.

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. This report, including the following Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements regarding future events or trends that should be read in conjunction with the factors described under “Special Note Regarding Forward-Looking Statements” included in this report. In addition, our actual results could differ materially from those projected in such forward-looking statements as a result of the factors discussed under “Special Note Regarding Forward-Looking Statements” as well as the risk factors described in Part II, Item 1A, “Risk Factors,” of this report.

Overview

We are an internally-managed Maryland corporation that focuses on the acquisition, renovation, leasing, and management of single-family properties in select markets in the United States. Our objective is to generate attractive risk-adjusted returns for our stockholders over the long term through dividends and capital appreciation. We generate virtually all of our revenue by leasing our portfolio of single-family properties. As of September 30, 2015, we owned 9,074 single family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas, excluding properties held for sale, and had another 11 properties under contract.

Through September 30, 2014, we were externally managed by PRCM Real Estate Advisers LLC (our "Former Manager"). During this time, we relied on our Former Manager to provide or obtain on our behalf the personnel and services necessary for us to conduct our business as we had no employees of our own. On September 30, 2014, we closed a transaction to internalize our management (the "Internalization") and now own all material assets and intellectual property rights of our Former Manager previously used in the conduct of its business and continue to be managed by officers and employees who worked for our Former Manager and became our employees as a result of the Internalization.

We have elected to be treated as a real estate investment trust ("REIT") for U.S. federal tax purposes, commencing with, and in connection with the filing of our federal tax return for, our taxable year ended December 31, 2012. As a REIT, we generally are not subject to federal income tax on the taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax at regular corporate rates. Even if we qualify for taxation as a REIT, we may be subject to some federal, state and local taxes on our income or property. In addition, the income of any taxable REIT subsidiary ("TRS") that we own will be subject to taxation at regular corporate rates.

Silver Bay Realty Trust Corp. was incorporated in Maryland in June 2012. Silver Bay Realty Trust Corp. conducts its business and owns all of its properties through Silver Bay Operating Partnership L.P. (the "Operating Partnership"), a Delaware limited partnership. Silver Bay Realty Trust Corp.’s wholly owned subsidiary, Silver Bay Management LLC (the "General Partner") is the sole general partner of the Operating Partnership. Silver Bay Realty Trust Corp. has no material assets or liabilities other than its investment in the Operating Partnership. As of September 30, 2015, Silver Bay Realty Trust Corp. owned, through a combination of direct and indirect interests, 94.2% of the partnership interests in the Operating Partnership. Except as otherwise required by the context, references to the “Company,” “Silver Bay,” “we,” “us” and “our” refer collectively to Silver Bay Realty Trust Corp., the Operating Partnership and the direct and indirect subsidiaries of each.

Acquisition of The American Home Real Estate Investment Trust, Inc. Portfolio

As of April 1, 2015, we substantially completed the acquisition (the “Portfolio Acquisition”) of the portfolio of properties from The American Home Real Estate Investment Trust (“TAH”), a Maryland corporation. During the nine months ended September 30, 2015, we acquired 2,456 properties in the transaction (the “Acquired Properties”). The aggregate purchase price for the Portfolio Acquisition was $263.0 million. The homes are primarily located in Atlanta, Charlotte, Tampa and Orlando and increase the total number of homes we own in these markets. We used amounts borrowed under our revolving credit facility to fund our payment of the purchase price. The Acquired Properties were substantially leased as of the acquisition date with aggregate occupancy of approximately 93% and average existing rents of approximately $960 per month on April 1, 2015.

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Property Portfolio

Our real estate investments consist of single-family properties in select markets. As of September 30, 2015, we owned 9,074 single-family properties, excluding properties held for sale, in the following markets:

Market	Number of Properties (1)	Aggregate Cost Basis (2) (thousands)		Average Cost Basis Per Property (thousands)		Average Age (in years) (3)	Average Square Footage
Atlanta	2,730	$	314,982	$	115	21.1	1,798
Phoenix	1,424	202,371		142		26.2	1,636
Tampa	1,112	158,577		143		26.6	1,623
Charlotte	690	84,645		123		14.9	1,643
Orlando	513	67,725		132		27.7	1,492
Dallas	504	67,515		134		23.0	1,618
Jacksonville	452	59,597		132		26.4	1,537
Southeast FL (4)	385	76,352		198		43.5	1,494
Northern CA (5)	384	72,856		190		46.4	1,401
Las Vegas	290	41,244		142		18.7	1,717
Columbus	284	33,087		117		37.6	1,414
Tucson	209	17,416		83		42.0	1,330
Southern CA (6)	97	15,196		157		46.9	1,325
TOTALS	9,074	$	1,211,563	$	134	26.0	1,639

(1) Total properties exclude properties held for sale or sold and any properties previously acquired in purchases that have been subsequently rescinded or vacated.

(2) Aggregate cost includes all capitalized costs, determined in accordance with GAAP, incurred through September 30, 2015 for the acquisition, stabilization, and significant post-stabilization renovation of properties, including land, building, possession costs and renovation costs. Aggregate cost includes $12.2 million in capital improvements, incurred from our formation through September 30, 2015, made to properties that had been previously renovated, but does not include accumulated depreciation.

(3) As of September 30, 2015, approximately 9% of our properties were less than 10 years old, 35% were between 10 and 20 years old, 20% were between 20 and 30 years old, 17% were between 30 and 40 years old, 9% were between 40 and 50 years old, and 10% were more than 50 years old. Average age is an annual calculation.

(4) Southeast Florida market currently consists of Miami-Dade, Broward and Palm Beach counties.

(5) Northern California market currently consists of Contra Costa, Napa and Solano counties.

(6) Southern California market currently consists of Riverside and San Bernardino counties.

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Recent Highlights of 2015

• Funds From Operations ("FFO") was $5.6 million, or $0.14 per share, in the third quarter of 2015, as compared to $(38.3) million, or $(1.00) per share, in the third quarter of 2014. Core Funds From Operations ("Core FFO") was $6.4 million, or $0.17 per share, in the third quarter of 2015, as compared to $3.0 million, or $0.08 per share, in the third quarter of 2014.

• On September 25, 2015, we declared a $0.12 per share dividend on our common stock compared to $0.04 per share dividend in the third quarter 2014.

• At September 30, 2015, we had cash and cash equivalents of $41.0 million, escrow deposits of $23.0 million and $55.7 million in additional borrowing capacity under the revolving credit facility.

• Aggregate occupancy as of September 30, 2015 was 94.9% as compared to 88.1% as of September 30, 2014.

• Stabilized occupancy as of September 30, 2015 was 94.9% as compared to 93.9% as of September 30, 2014.

• From July 1, 2015 to September 30, 2015, we sold 150 single-family homes, of which 122 were in Houston, for total gross proceeds of $18.4 million. Net gain for the sales totaled $2.1 million during the three months ended September 30, 2015, excluding the net gain on homes acquired in the Portfolio Acquisition whose gain will be re-allocated to the purchase price within one year of the acquisition.

Factors likely to affect Silver Bay's Results of Operations

Our results of operations and financial condition will be affected by numerous factors, many of which are beyond our control. The key factors we expect to impact our results of operations and financial condition include our pace and costs of acquisitions, the time and costs required to stabilize a newly-acquired property and convert the same to rental use, the age of our properties, rental rates, the varying costs of internal and external property management, seasonality, turn and repairs and maintenances costs, occupancy levels, rates of resident turnover, home price appreciation, changes in homeownership rates, changes in homeowners’ association fees and real estate taxes, our expense ratios and our capital structure.

25

Industry and Market Outlook

The housing market environment in our markets remains attractive for single-family property ownership and rentals. Acquisition pricing for housing in certain of our markets remains attractive and demand for housing is growing or remains strong. At the same time, we continue to face competition for new properties and residents from local operators and institutional managers.

Housing prices across all of our core markets have appreciated over the past twelve months. Despite these gains, we believe housing in certain of our markets continues to provide attractive acquisition opportunities and remains inexpensive relative to replacement cost and affordability metrics.

MSA Home Price Appreciation (“HPA”)⁽¹⁾ 

Source: CoreLogic as of August 2015

Market	HPA  (Peak to Trough)(2)		HPA  (Peak to Current)		HPA  (Prior 12 months)		HPA  (Prior 3 months)
Atlanta, GA	-33	%	-1	%	6	%	2	%
Phoenix, AZ	-53	%	-25	%	6	%	2	%
Tampa, FL (3)	-48	%	-30	%	5	%	1	%
Charlotte, NC	-17	%	5	%	5	%	—	%
Orlando, FL	-55	%	-32	%	6	%	3	%
Dallas, TX (4)	-13	%	14	%	8	%	3	%
Jacksonville, FL	-40	%	-24	%	6	%	2	%
Southeast FL (5)	-53	%	-31	%	5	%	2	%
Northern CA (6)	-58	%	-30	%	7	%	2	%
Las Vegas, NV	-60	%	-33	%	8	%	4	%
Columbus, OH	-18	%	4	%	4	%	3	%
Tucson, AZ	-42	%	-29	%	2	%	1	%
Southern CA (7)	-53	%	-27	%	6	%	2	%
National	-32	%	-6	%	7	%	3	%

_______________

(1) “MSA” means Metropolitan Statistical Areas, which is generally defined as one or more adjacent counties or county equivalents that have at least one urban core area of at least a 50,000-person population, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties.

(2) Peak refers to highest historical home prices in a particular market prior to the start of the housing recovery. Trough refers to lowest home prices in a particular market since the peak.

(3) MSA used for Tampa is St. Petersburg-Clearwater.

(4) MSA used for Dallas is Fort Worth-Arlington.

(5) MSA used for Southeast Florida is Fort Lauderdale-Pompano Beach-Deerfield Beach.

(6) MSA used for Northern California is Fairfield-Vallejo, which most closely approximates the geographic area in which we purchased homes in Northern California. This MSA is comprised of Solano County and the most populous cities in the MSA are Vallejo, Fairfield, Vacaville, Suisun and Benicia.

(7) MSA used for Southern California is Riverside-San Bernardino-Ontario. This MSA is comprised of Riverside and San Bernardino counties and the most populous cities in the MSA are Riverside, San Bernardino, Fontana and Moreno Valley.

On the demand side, we anticipate continued strong rental demand for single-family homes. While new building activity has increased, it remains below historical averages and we believe substantial under-investment in residential housing over the past seven years will create upward pressure on home prices and rents as demand exceeds supply. We expect this will take time and will be uneven across markets, but we believe pricing will revert to replacement cost, which would be favorable to our total return profile.

26

Acquisitions

Our ability to identify and acquire single-family properties that meet our investment criteria will be affected by home prices in our markets, the inventory of properties available through our acquisition channels, competition for our target assets, and our capital available for investment. We acquired 18 properties in the three months ended September 30, 2015. As of September 30, 2015, for properties acquired which involve submitting a purchase offer, we had offers accepted to purchase 11 additional properties for an aggregate amount of $1.1 million.

The pace of our continued acquisitions will be subject to the availability of additional debt or equity capital, among other factors, and will likely be uneven given our preference for portfolio acquisitions, which are inherently less predictable.

Stabilization, Renovation and Leasing

Before an acquired property becomes an income producing asset, we must possess, renovate, market and lease the property. We refer to this process as property stabilization. We consider a property stabilized at the earlier of (i) its first authorized occupancy or (ii) 90 days after the renovations for such property are complete regardless of whether the property is leased. Properties acquired with in-place leases are considered stabilized even though such properties may require future renovation to meet our standards and may have existing residents who would not otherwise meet our resident screening requirements. The time to stabilize a newly acquired property can vary significantly among properties for several reasons, including the property’s acquisition channel, the age and condition of the property, whether the property was vacant when acquired, local demand for our properties, our marketing techniques, and the size of our available inventory of rent ready properties.

The following table summarizes the stabilized and leasing status of our properties as of September 30, 2015:

Market	Number of Properties	Number of Stabilized Properties	Properties Leased	Properties Vacant	Aggregate Portfolio Occupancy Rate		Stabilized Occupancy Rate		Average  Monthly Rent (1)		Average Remaining Lease Term (Months) (2)
Atlanta	2,730	2,729	2,551	179	93.4	%	93.5	%	$	1,053	8.9
Phoenix	1,424	1,424	1,378	46	96.8	%	96.8	%	1,095		7.5
Tampa	1,112	1,112	1,036	76	93.2	%	93.2	%	1,289		8.4
Charlotte	690	689	633	57	91.7	%	91.9	%	1,053		8.2
Orlando	513	513	503	10	98.1	%	98.1	%	1,139		7.9
Dallas	504	504	479	25	95.0	%	95.0	%	1,287		9.5
Jacksonville	452	452	446	6	98.7	%	98.7	%	1,130		6.3
Southeast FL	385	381	357	28	92.7	%	93.7	%	1,648		6.5
Northern CA	384	384	380	4	99.0	%	99.0	%	1,573		6.7
Las Vegas	290	290	284	6	97.9	%	97.9	%	1,181		7.7
Columbus	284	284	273	11	96.1	%	96.1	%	1,066		8.8
Tucson	209	209	201	8	96.2	%	96.2	%	842		5.1
Southern CA	97	97	89	8	91.8	%	91.8	%	1,226		4.6
Totals	9,074	9,068	8,610	464	94.9	%	94.9	%	$	1,159	8.0

(1) Average monthly rent for leased properties was calculated as the average of the contracted monthly rent for all leased properties as of September 30, 2015 and reflects rent concessions amortized over the life of the related lease.

(2) Average remaining lease term assumes a remaining term of 30 days for leases in month-to-month status.

Aggregate portfolio occupancy increased to 94.9% as of September 30, 2015 compared to 94.7% as of June 30, 2015.

In the quarter ended September 30, 2015, 744 properties turned over. This turnover number includes move-outs, evictions and lease breaks on our stabilized portfolio but excludes evictions of unauthorized residents at time of acquisition. Quarterly turnover for the three months ended September 30, 2015 was 8.2% compared to 8.9% for the three months ended September 30, 2014. Quarterly turnover represents the number of properties turned over in the period divided by the number of properties in stabilized status at period-end (i.e., 9,068 properties as of September 30, 2015). The total number of properties with lease expirations in the three months ended September 30, 2015 was 2,376, including properties with month-to-month occupancy in the period. Of these properties, 534 properties turned over (a 77.5% retention rate for these properties).

27

The following is a summary of our turnover percentage by quarter for the three months ended September 30, 2015 and the prior three quarters:

Quarter Ended	Turnover (1)
September 30, 2015	8.2	%
June 30, 2015	7.0	%
March 31, 2015	5.8	%
December 31, 2014	6.6	%
Trailing twelve months	27.6	%

(1) Quarterly turnover percentage represents the number of properties turned over in each respective period divided by the number of properties in stabilized status as of each respective period-end.

28

Results of Operations

The following are our results of operations (unaudited) for the three and nine months ended September 30, 2015 and 2014:

Income Statement Data	Three Months Ended September 30,						Nine Months Ended September 30,
(amounts in thousands except per share data)	2015			2014			2015			2014
Revenue:
Total revenue	$	30,617		$	19,974		$	83,053		$	57,257
Expenses:
Property operating and maintenance	6,529			4,787			16,479			12,537
Real estate taxes	3,918			2,732			11,864			8,011
Homeowners’ association fees	512			334			1,465			993
Property management	3,167			2,336			8,262			7,569
Depreciation and amortization	9,068			6,427			25,074			18,800
Advisory management fee - affiliates	—			2,251			—			6,621
Management internalization	—			39,179			—			39,179
Portfolio acquisition expense	66			—			2,046			—
General and administrative	3,973			2,157			12,071			7,323
Share-based compensation	718			259			1,895			716
Interest expense	5,959			3,741			15,307			8,710
Total expenses	33,910			64,203			94,463			110,459
Loss before other income (expense) and non-controlling interests	(3,293		)	(44,229		)	(11,410		)	(53,202		)
Total other income (expense)	1,866			(641		)	2,256			(1,003		)
Net loss	$	(1,427	)	$	(44,870	)	$	(9,154	)	$	(54,205	)
Net loss attributable to common stockholders	$	(1,368	)	$	(44,895	)	$	(8,698	)	$	(54,280	)
Net loss per share attributable to common shares - basic and diluted	$	(0.04	)	$	(1.17	)	$	(0.24	)	$	(1.41	)
Other data (1):
Net operating income	$	16,497		$	9,973		$	45,152		$	28,854
Net operating income as a % of total revenue	53.9		%	49.9		%	54.4		%	50.4		%
Funds from operations (FFO)	$	5,566		$	(38,330	)	$	13,361		$	(34,845	)
Core funds from operations (Core FFO)	$	6,432		$	2,995		$	17,841		$	8,624
FFO per share	$	0.14		$	(1.00	)	$	0.35		$	(0.91	)
Core FFO per share	$	0.17		$	0.08		$	0.46		$	0.22

(1) NOI, FFO and Core FFO are non-GAAP financial measures we believe, when considered with the financial statements determined in accordance with GAAP, are helpful to investors in understanding our performance as a REIT. Reconciliations of NOI, FFO and Core FFO to net loss prepared in accordance with GAAP are found in this Item 2 under the headings "Net Operating Income" and "Funds From Operations and Core Funds From Operations".

Comparison of the Three and Nine Months Ended September 30, 2015 and the Three and Nine Months Ended September 30, 2014

Revenue

We earn revenue primarily from rents collected from residents under lease agreements for our single-family properties. These include short-term leases that we enter into directly with our residents, which generally have a term of one year. The most important drivers of revenue (aside from portfolio growth) are rental and occupancy rates. Our revenue may be affected by macroeconomic, local and property level factors, including market conditions, seasonality, resident defaults or vacancies, timing of renovation activities and occupancy of properties and timing to re-lease vacant properties.

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Total revenue increased $10.6 million and $25.8 million in the three and nine months ended September 30, 2015, respectively, over the prior year periods. This increase was due primarily to the increase in the number of properties leased. We owned 8,610 leased properties as of September 30, 2015 as compared to 5,566 leased properties as of September 30, 2014. We achieved an average monthly rent for leased properties in our total portfolio of $1,159 and $1,183 as of September 30, 2015 and 2014, respectively. Secondarily, excluding the Portfolio Acquisition, our aggregate occupancy increased to 95.7% from 88.1% and our average monthly rent on leased homes increased 3.4% over the prior year period.

Expenses

Property Operating and Maintenance Expenses.  Property operating and maintenance expenses increased $1.7 million and $3.9 million in the three and nine months ended September 30, 2015, respectively, over the prior year periods. Included in property operating and maintenance expenses are property insurance, bad debt, utilities and landscape maintenance on market ready properties not leased, repairs and maintenance, and expenses associated with resident turnover. The increase in these expenses from the prior year periods was generally due to the significant increase in the number of properties owned and in-service in the three and nine months ended September 30, 2015 as compared to the prior year periods.

Real Estate Taxes.  Real estate taxes are expensed once a property is market ready for the first time. Real estate taxes increased $1.2 million and $3.9 million in the three and nine months ended September 30, 2015, respectively, over the prior year periods. The increase in real estate taxes is attributable to the significant increase in the number of properties owned and in-service in the three and nine months ended September 30, 2015 as compared to the prior year periods and to a lesser extent increased property tax assessments attributable to home price appreciation in certain of our markets. 

Property Management.  As of September 30, 2015, we used internal teams to manage our properties in Atlanta, Phoenix, Tampa, Charlotte, Dallas, Jacksonville, Southeast Florida, Northern California, Columbus and Southern California, which represents 88.8% of our portfolio. We use third-party property managers in our other markets.Prior to the Internalization, rather than compensating our Former Manager’s operating subsidiary with commissions or fees based on rental income, we reimbursed all costs and expenses of our Former Manager’s operating subsidiary incurred on our behalf. In addition to these costs, we paid a property management fee to our Former Manager’s operating subsidiary equal to 5% of certain compensation and overhead costs incurred as a result of providing services to us, which reduced the advisory management fee paid to our Former Manager by the same amount. Following the Internalization, we incur all property management costs directly. Third-party property management arrangements include fees based on a percentage of rental income and other fees collected from our residents and, in some cases, fees for renovation oversight and leasing activities.

Property management expenses increased $0.8 million and $0.7 million in the three and nine months ended September 30, 2015, respectively, over the prior year periods. The expense changes were generally due to the significant increase in the number of properties owned in the three and nine ended September 30, 2015 offset by the reclassification of certain personnel related costs in general and administrative starting in the fourth quarter of 2014, which were classified in property management in the prior year period, the lack of system implementation costs, and the lack of the 5% property management fee in the current periods. As a percentage of revenue, property management was 10.3% and 9.9% for the three and nine months ended September 30, 2015, respectively, in comparison to 11.7% and 13.2% for the three and nine months ended September 30, 2014, respectively. Beginning in the fourth quarter of 2014, certain personnel related costs previously classified in property management are classified in general and administrative due to changes in the management structure resulting from the Internalization. We incurred $0.6 million and $2.0 million in such reclassified costs in the three and nine months ended September 30, 2015 which are now reflected as general and administration expense.

Depreciation and Amortization.  Depreciation and amortization includes depreciation on real estate assets placed in-service and amortization of deferred lease fees and in-place leases. Depreciation and amortization increased $2.6 million and $6.3 million in the three and nine months ended September 30, 2015, respectively, over the prior year periods, primarily as a result of an increase in the number of properties being depreciated in the three and nine months ended September 30, 2015, as more properties are owned and in-service than the prior year periods.

Advisory Management Fee. Prior to the Internalization, we relied on our Former Manager to provide or obtain on our behalf the personnel and services necessary for us to conduct our business because we had no employees of our own. Under the previous arrangement, we paid our Former Manager a quarterly advisory management fee equal to 0.375% (a 1.5% annual rate) of our average fully-diluted market capitalization during the preceding quarter, less the 5% property management fee paid to our Former Manager’s operating subsidiary. Beginning in the fourth quarter of 2014, we no longer incur the advisory management fee and, accordingly, as described below, general and administrative expenses related to personnel expenses and other expenses previously borne by our Former Manager have increased.

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Portfolio Acquisition Expense. We incurred $0.1 million and $2.0 million of costs associated with the Portfolio Acquisition in the three and nine months ended September 30, 2015, respectively.  

General and Administrative Expense. General and administrative expenses include those costs related to being a public company, costs incurred under the advisory management agreement with our Former Manager through the date of Internalization on September 30, 2014, certain personnel costs we now incur directly following the Internalization and other expenses associated with our corporate and administrative functions. Under the advisory management agreement, we paid all costs and expenses of our Former Manager incurred in the operation of its business, including all compensation costs (other than for our Chief Executive Officer and personnel providing data analytics directly supporting the investment function). As described above, beginning in the fourth quarter of 2014, general and administrative expense includes certain amounts previously borne by our Former Manager for the compensation of our Chief Executive Officer, personnel providing data analytics directly supporting the investment function and certain other costs, in addition to certain personnel and operational costs classified as property management.

General and administrative expense increased $1.8 million and $4.7 million in the three and nine months ended September 30, 2015, respectively, over the prior year periods, which was primarily attributable to increased personnel and related costs for the reasons described above.

Share-based Compensation. Share-based compensation expense includes costs associated with our restricted stock awards to our board of directors and certain employees and our performance stock unit awards to certain members of management.

Share-based compensation expense increased $0.5 million and $1.2 million, in the three and nine months ended September 30, 2015, respectively, over the prior year periods due to the awards made in February and May 2015, which are described in Note 5 of the condensed consolidated financial statements included within this Quarterly Report on Form 10-Q.

Interest Expense. Interest expense includes interest incurred on the outstanding balance of our debt, an unused line fee on the undrawn amount of the revolving credit facility, and amortization of deferred financing fees, net of certain amounts capitalized for properties undergoing renovation activities. Interest expense increased $2.2 million and $6.6 million in the three and nine months ended September 30, 2015, respectively, over the prior year periods. The change is primarily attributable to a higher average outstanding balance of debt and amortization of additional financing fees incurred in the securitization transaction and the credit facility upsize related to financing the Portfolio Acquisition.

Total Other Income (Expense). Total other income (expense) was $1.9 million and $2.3 million for the three and nine months ended September 30, 2015, respectively as compared to $(0.6) million and $(1.0) million for the three and nine months ended September 30, 2014, respectively. The increase in other income is primarily due to the net gain on disposition of real estate related to our Houston portfolio along with certain other properties and a decrease related to the ineffectiveness in interest rate cap agreements.

Critical Accounting Policies

Our critical accounting policies are described in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the year ended December 31, 2014. The accounting policies used in preparing our interim 2015 condensed consolidated financial statements are the same as those described in our Annual Report, with the exception of our adoption in the first quarter of 2015 of Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). Refer to discussion of ASU 2014-08 in Note 2 of the condensed consolidated financial statements included within this Quarterly Report on Form 10-Q.

The preparation of financial statements in accordance with generally accepted accounting principles requires us to make certain judgments and assumptions, based on information available at the time of our preparation of the financial statements, in determining accounting estimates used in preparation of the financial statements.

Accounting estimates are considered critical if the estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made and if different estimates reasonably could have been used in the reporting period or changes in the accounting estimate are reasonably likely to occur from period to period that would have a material impact on our financial condition, results of operations or cash flows.

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Our critical accounting policies are those related to:

• Revenue recognition;

• Real estate acquisition valuation;

• Capitalized costs;

• Impairment of real estate;

• Depreciation of real estate; and

• Income taxes.

Recent Accounting Pronouncements

Under the Jumpstart Our Business Startups Act (the "JOBS Act") we meet the definition of an “emerging growth company.” We have irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.

We consider the applicability and impact of all accounting standard updates ("ASUs"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for interim or annual periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption. Early adoption of this standard is only allowed as of the original effective date, annual periods beginning after December 15, 2016. We are currently evaluating the impact the adoption of Topic 606 will have on its consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. This update is intended to improve targeted areas of consolidation guidance by simplifying the consolidation evaluation process, and by placing more emphasis on risk of loss when determining a controlling financial interest. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. We are currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs for term debt in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The impact will be a reduction of other assets and the associated reported debt liability related to the securitization loan.

Liquidity and Capital Resources

Liquidity is a measure of our ability to meet potential cash requirements, fund and maintain our assets and operations, make interest payments and make distributions to our stockholders. Our liquidity, to a certain extent, is subject to general economic, financial, competitive and other factors that are beyond our control. Our near-term liquidity requirements consist primarily of acquiring and renovating properties, funding our operations, and making interest payments and distributions to our stockholders.

Our liquidity and capital resources as of September 30, 2015 consisted of cash and cash equivalents of $41.0 million, escrow deposits of $23.0 million, and $55.7 million in additional borrowing capacity under our revolving credit facility. Escrow deposits include cash held in reserve at financial institutions, as required by our debt agreements, of $22.8 million at September 30, 2015. Escrow deposits also include refundable and non-refundable cash and earnest money on deposit with certain third-party property managers for property purchases and renovation costs, earnest money deposits, and at times,

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monies held with certain municipalities for property purchases.  As of September 30, 2015 we had offers accepted to purchase residential properties for an aggregate amount of $1.1 million; however not all of these properties are certain to be acquired because certain properties may fall out of escrow through the closing process for various reasons.

We believe the cash flows from operations together with current cash and funds available under our revolving credit facility will be sufficient to fund the anticipated needs of our operations, fund any existing contractual obligations to purchase properties and renovate our portfolio of properties in 2015. We may also opportunistically utilize the capital markets to raise additional capital, including through the issuance of debt and equity securities (including the issuance of common units in the Operating Partnership) and securitizations in the future, but there can be no assurance that we will be able to access adequate liquidity sources on favorable terms or at all.

Securitization Loan

On August 12, 2014, we completed a securitization transaction (the "Securitization Transaction") in which we received gross proceeds of $311.2 million, net of an issue discount of $1.5 million and before issuance costs and reserves. The Securitization Transaction involved the issuance and sale of single-family rental pass-through certificates that represent beneficial ownership interests in a loan secured by 3,084 single-family properties (the "Securitization Properties") sold to one of our affiliates from our portfolio. In the Securitization Transaction, we sold approximately $312.7 million of certificates, with a blended effective interest rate of the London Interbank Offered Rate ("LIBOR") plus 1.92%, inclusive of the amortization of the original issue discount, plus monthly servicing fees of 0.1355% per tranche. The original issue discount will be accreted and recognized to interest expense through the fully extended maturity date of September 9, 2019.

As part of the Securitization Transaction, one of our subsidiaries (the "Borrower") entered into a loan agreement described below (the "Securitization Loan"). The Securitization Loan was subsequently deposited into a trust in exchange for the pass-through certificates. The pass-through certificates represent the entire beneficial interest in the trust and were sold in a private offering through the placement agents retained for the transaction. The certificates were offered and sold under Rule 144A and Regulation S under the Securities Act of 1933, as amended. During the nine months ended September 30, 2015, we paid down $6.9 million on the Securitization Loan to effect the release of certain properties from the first priority mortgages securing the Securitization Loan, primarily related to the sale of our Houston portfolio.

The Securitization Loan has an initial term of two years, with three, 12-month extension options, resulting in a fully extended maturity date of September 9, 2019, and bears interest at a blended effective interest rate of LIBOR plus 1.94% at September 30, 2015, as a result of the pay down as noted above, plus monthly servicing fees of 0.1355%.

All amounts outstanding under the Securitization Loan are secured by first priority mortgages on the Securitization Properties in addition to the equity interests in, and certain assets of, the Borrower. The amounts outstanding under the Securitization Loan and certain obligations contained therein are guaranteed by the Operating Partnership only in the case of certain bad acts (including bankruptcy) as outlined in the transaction documents.

The Securitization Loan does not contractually restrict our ability to pay dividends but certain covenants contained therein may limit the amount of cash available for distribution. The Securitization Loan documents require us to maintain certain covenants, including a minimum debt yield on the Securitization Properties, and contain customary events of default for a facility of this type, including payment defaults, covenant defaults, breaches of representations and warranties, bankruptcy and insolvency, judgments, change of control and cross-default with certain other indebtedness. 

We used the proceeds of the Securitization Loan to pay down the balance of our revolving credit facility at closing and the remaining proceeds were used for working capital and other corporate purposes, including the acquisition, financing and renovation of properties and the repurchase of common stock.

Revolving Credit Facility

Certain of our subsidiaries have a revolving credit facility with a syndicate of banks. On February 18, 2015, we amended and restated the revolving credit facility to increase the borrowing capacity to $400.0 million from $200.0 million and subsequently amended the revolving credit facility to address certain interest calculation mechanics. As amended, the revolving credit facility bears interest at a varying rate of LIBOR plus 300 basis points with a LIBOR floor of 0.0%. Prior to the amendment, the revolving credit facility bore interest at varying rate of LIBOR plus 3.5% subject to a LIBOR floor of 0.5%. We are also required to pay a monthly fee on the unused portion of the revolving credit facility at a rate of 0.5% per annum, when the balance outstanding is less than $200.0 million or 0.3% per annum when the balance outstanding is equal to or greater than $200.0 million. As part of the amendment, the term on the revolving credit facility was extended to February 18, 2018 and

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the advance rate for borrowings was increased to 65% from 55%. The advance rate is based on the aggregate value of the eligible properties which value is calculated as the lesser of (a) the third-party broker price opinion value or (b) the original purchase price plus certain renovation and other capitalized costs of the properties. We used the revolving credit facility to fund the Portfolio Acquisition. The remaining proceeds will be used for working capital and other corporate purposes, including the acquisition, financing and renovation of properties. At September 30, 2015, there was $344.3 million outstanding under the facility and $55.7 million in borrowing capacity. 

All amounts outstanding under the revolving credit facility are collateralized by the equity interests and assets of certain of our subsidiaries ("Pledged Subsidiaries"). The amounts outstanding under the revolving credit facility and certain obligations contained therein are guaranteed by Silver Bay Realty Trust Corp. and the Operating Partnership only in the case of certain bad acts (including bankruptcy) and up to $20.0 million for completion of certain property renovations, as outlined in the credit documents. The Pledged Subsidiaries are required to pay a monthly fee in connection with the revolving credit facility based upon the unused portion of the facility, certain fees assessed in connection with establishing the facility and other fees specified in the revolving credit facility documents. 

The revolving credit facility does not contractually restrict our ability to pay dividends but certain covenants contained therein may limit the amount of cash available for distribution. For example, in the final year of the revolving credit facility, all cash generated by the properties in the Pledged Subsidiaries must be used to pay down the principal amount outstanding under the revolving credit facility. As of September 30, 2015, there were 5,955 properties pledged in the revolving credit facility. The revolving credit facility requires us to meet certain quarterly financial tests pertaining to total liquidity, net worth, debt yield and debt service coverage ratios and contain customary events of default for a facility of this type, including payment defaults, covenant defaults, breaches of representations and warranties, bankruptcy and insolvency, judgments, change of control and cross-default with certain other indebtedness. We must maintain at all times total liquidity of $25.0 million and a net worth of at least $125.0 million, in each case as determined in accordance with our revolving credit facility.

Interest Rate Cap Agreements

We enter into interest rate cap agreements to manage interest rate risk associated with our variable rate debt. As of September 30, 2015, we have two interest rate cap agreements at LIBOR of 3.00% with an aggregate notional amount of $349.1 million to hedge interest rate risk associated with our revolving credit facility with a termination date of February 18, 2018, one interest rate cap agreement at LIBOR of 3.1085% with a notional amount of $312.7 million to hedge interest rate risk associated with our Securitization Loan with a termination date of September 15, 2016 and one forward-starting interest rate cap agreement at LIBOR of 3.1085% with a notional amount of $200.0 million to hedge interest rate risk associated with our Securitization Loan for the period September 15, 2016 through September 15, 2019.

Operating Activities

Net cash provided by operating activities in the nine months ended September 30, 2015 was $23.1 million compared to cash provided by operating activities of $9.1 million for the nine months ended September 30, 2014. Our operating cash flows during the nine months ended September 30, 2015 were driven by an increase in our portfolio of cash-generating properties offset by an increase of certain cash reserves associated with our debt as a result of the Portfolio Acquisition, as well as an increase in operating payables on our larger portfolio. Our operating cash flows during the nine months ended September 30, 2014 were affected by the results of our operations, additional reserves provided under the revolving credit facility, additional cash on hand with our former property managers for operations, and payments to related parties, partially offset by the depreciation and amortization addback.

Investing Activities

Net cash used in investing activities in the nine months ended September 30, 2015 of $271.4 million was largely driven by the Portfolio Acquisition. We used $272.7 million for property acquisitions and another $20.7 million on capital improvements of which $15.1 million was attributable to our initial renovation of properties, which includes properties purchased in a bulk purchase that have been renovated for the first time, and $5.6 million was attributable to capital improvements to properties that had been previously renovated.

The average renovation cost per property was approximately $28,500 or 25.8% of the purchase price for all properties placed in service since commencing operations through September 30, 2015, including properties acquired with an in-place lease but excluding properties acquired from entities managed by Provident Real Estate Advisors LLC and The American Home Real Estate Investment Trust. These renovation costs include capitalized expenditures for renovations, property taxes,

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homeowners’ association dues, interest, costs required to gain possession of the property and other capitalized expenditures until the property is ready for its intended use.

Net cash used in investing activities in the nine months ended September 30, 2014 was $98.1 million and was primarily the result of our acquisition and renovation of newly acquired properties. We used $79.6 million for property acquisitions and another $24.2 million on capital improvements, of which $20.2 million was attributable to our initial renovation of properties which includes properties purchased in a bulk purchase that were renovated for the first time and $4.0 million was attributable to capital improvements to properties that had been previously renovated.

The acquisition of properties involves the outlay of capital beyond payment of the purchase price, including payments for property inspections, closing costs, title insurance, transfer taxes, recording fees, broker commissions, and property taxes or homeowners’ association dues in arrears, along with capitalized interest on properties purchased since we incurred debt in May 2013. Typically, these costs are capitalized as components of the purchase price of the acquired asset unless the property was purchased with an existing lease. We also make significant capital expenditures to renovate and maintain our properties to Silver Bay standards. Our ultimate success depends in part on our ability to make prudent, cost-effective decisions measured over the long term with respect to these expenditures.

Financing Activities

Net cash provided by financing activities in the nine months ended September 30, 2015 was $239.5 million and was attributable to a draw on the revolving credit facility of $282.0 million to fund the Portfolio Acquisition, partially offset by repurchases and retirement of our common stock of $12.3 million, dividends paid of $10.4 million, deferred financing costs of $5.8 million, re-payment on our Securitization Loan of $6.9 million, re-payment of our revolving credit facility of $4.8 million and purchases of interest rate caps of $2.3 million. Cash provided by financing activities in the nine months ended September 30, 2014 was $115.7 million, primarily attributable to proceeds from the Securitization Transaction of $311.2 million and proceeds from our revolving credit facility of $70.7 million, reduced by re-payments of our revolving credit facility of $235.5 million, repurchases and retirement of our common stock of $14.7 million, deferred financing costs of $12.2 million and and dividends paid of $2.8 million. In addition to the pay-down of our revolving credit facility, we used the proceeds from our Securitization Transaction to repurchase common stock, invest in residential properties and for other general corporate purposes.

We have an obligation to pay dividends on our outstanding 10% cumulative redeemable preferred stock with a $1.0 million aggregate liquidation preference in preference to dividends paid on our common stock.

We have elected to be treated as a REIT for U.S. federal income tax purposes. As a REIT, under U.S. federal income tax law we are required to distribute annually at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our REIT taxable income. Subject to the requirements of the Maryland General Corporation Law, we intend to pay quarterly dividends to our stockholders, if and to the extent authorized by our board of directors, which in the aggregate approximately equal our REIT taxable income in the relevant year. On September 25, 2015, our board of directors declared $4.6 million in common stock and common unit dividends, which were paid on October 16, 2015.

In connection with our Internalization, we issued 2,231,511 common units of the Operating Partnership, which may be redeemed for cash or, at our election, a number of our common shares on a one-for-one basis beginning on September 30, 2015. To the extent that we redeem the common units for cash, our liquidity will decrease.

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Off-Balance Sheet Arrangements

We have no obligations, assets or liabilities which would be considered off-balance sheet arrangements. We have not participated in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.

Aggregate Contractual Obligations

The following table summarizes the effect on our liquidity and cash flows from certain contractual obligations, as of September 30, 2015 (amounts in thousands):

	Total		Less than One Year		One to Three Years		Three to Five Years		More Than Five Years
Purchase obligations (1)	$	1,075	$	1,075	$	—	$	—	$	—
Long-term debt obligations (2)	718,819		18,419		388,925		311,475		—
Operating lease obligations (3)	1,849		586		563		463		237
Total	$	721,743	$	20,080	$	389,488	$	311,938	$	237

(1) Reflects accepted offers on purchase contracts for properties acquired through individual broker transactions that involve submitting a purchase offer and those remaining with the Portfolio Acquisition. Not all of these properties which are under contract to close in the future are certain to be acquired as properties may fall out of escrow through the closing process for various reasons.

(2) Includes estimated interest payments on the respective debt based on amounts outstanding as of September 30, 2015 and rates in effect as of such date. The revolving credit facility was amended and restated on February 18, 2015 and has a new maturity date of February 18, 2018. The Securitization Loan has an initial maturity date of September 9, 2016 and three, 12-month extension options resulting in a fully extended maturity date of September 9, 2019; this analysis assumes our exercise of the three extension options, which is management's intent.

(3) Includes operating leases for corporate and market offices.

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Net Operating Income

We define net operating income ("NOI") as total revenue less property operating and maintenance, real estate taxes, homeowners’ association fees, and property management expenses. NOI excludes depreciation and amortization, the former advisory management fees, management internalization, portfolio acquisition expense, general and administrative expenses, share-based compensation, interest expense, net gain on disposition of real estate, ineffectiveness of interest rate cap agreements and other non-comparable items as applicable. Additionally, NOI excludes certain property management add backs, such as the former 5% property management fee payable prior to the Internalization because it more closely represents additional advisory management fee, expensed acquisition fees and costs, and certain other property management costs.

We consider NOI to be a meaningful financial measure when considered with the financial statements determined in accordance with GAAP. We believe NOI is helpful to investors in understanding the core performance of our real estate operations.

The following is a reconciliation of our NOI to net loss as determined in accordance with GAAP for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss	$	(1,427	)	$	(44,870	)	$	(9,154	)	$	(54,205	)
Depreciation and amortization	9,068			6,427			25,074			18,800
Advisory management fee - affiliates	—			2,251			—			6,621
Management internalization	—			39,179			—			39,179
Portfolio acquisition expense	66			—			2,046			—
General and administrative	3,973			2,157			12,071			7,323
Share-based compensation	718			259			1,895			716
Interest expense	5,959			3,741			15,307			8,710
Net gain on disposition of real estate	(2,089		)	(84		)	(2,320		)	(161		)
Ineffectiveness of interest rate cap agreements	—			480			—			480
Other expense	223			245			64			684
Property operating and maintenance add back:
Market ready costs prior to initial lease and other	6			76			169			220
Property management add backs	—			112			—			487
Net operating income	$	16,497		$	9,973		$	45,152		$	28,854
Net operating income as a percentage of total revenue	53.9		%	49.9		%	54.4		%	50.4		%

NOI should not be considered an alternative to net loss or net cash flows from operating activities, as determined in accordance with GAAP, as indications of our performance or as measures of liquidity. Not all REITs compute the same non-GAAP measure. Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other REITs.

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Funds From Operations and Core Funds From Operations

Funds From Operations ("FFO") is a non-GAAP financial measure that we believe, when considered with the financial statements determined in accordance with GAAP, is helpful to investors in understanding our performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciable assets. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss), computed in accordance with GAAP, excluding gains or losses from sales of, and impairment losses recognized with respect to, depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated on the same basis to determine FFO.

Core Funds From Operations ("Core FFO") is a non-GAAP financial measure that we use as a supplemental measure of our performance. We believe that Core FFO is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by removing the impact of certain items that are not comparable from period to period. We adjust FFO for expensed acquisition fees and costs, including those associated with the portfolio of properties acquired from TAH, certain fees and expenses related to our Securitization Transaction, share-based compensation, write-offs of expenses associated with changes in our debt structure, and certain other non-cash or non-comparable costs to arrive at Core FFO.

FFO and Core FFO should not be considered alternatives to net income (loss) or net cash flows from operating activities, as determined in accordance with GAAP, as indications of our performance or as measures of liquidity. These non-GAAP measures are not necessarily indicative of cash available to fund future cash needs. In addition, although we use these non-GAAP measures for comparability in assessing our performance against other REITs, not all REITs compute the same non-GAAP measures. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other REITs. This is due in part to the differences in capitalization policies used by different companies and the significant effect these capitalization policies have on FFO and Core FFO. Real estate costs incurred in connection with real estate operations which are accounted for as capital improvements are added to the carrying value of the property and depreciated over time, whereas real estate costs that are expenses are accounted for as a current period expense. This impacts FFO and Core FFO because costs that are accounted for as expenses reduce FFO and Core FFO. Conversely, real estate costs associated with assets that are capitalized and then subsequently depreciated are added back to net income to calculate FFO and Core FFO.

FFO and Core FFO are calculated on a gross basis and, as such, do not reflect adjustments for the noncontrolling interests - Operating Partnership.    

38

The following table sets forth a reconciliation of our net loss as determined in accordance with GAAP and our calculations of FFO and Core FFO for the three and nine months ended September 30, 2015 and 2014. Also presented is information regarding the weighted-average number of shares of our common stock and common units of the Operating Partnership outstanding used for the computation of FFO and Core FFO per share (amounts in thousands, except share and per share amounts):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss (1)	$	(1,427	)	$	(44,870	)	$	(9,154	)	$	(54,205	)
Depreciation and amortization	9,068			6,427			25,074			18,800
Net gain on disposition of real estate	(2,089		)	(84		)	(2,320		)	(161		)
Other expense (income)	14			197			(239		)	721
Funds from operations	$	5,566		$	(38,330	)	$	13,361		$	(34,845	)
Adjustments:
Portfolio acquisition expense (2)	$	66		$	—		$	2,046		$	—
Acquisition fees and costs expensed (3)	—			—			—			835
Securitization fees and costs expensed (4)	—			217			—			801
Share-based compensation	718			259			1,895			716
Market ready costs prior to initial lease and other	6			76			169			220
System implementation costs	—			15			—			139
Management internalization (1)	—			39,179			—			39,179
Write-off of deferred financing fees	—			1,058			31			1,058
Ineffectiveness of interest rate cap agreements	—			480			—			480
Amortization of discount on securitization loan	75			41			225			41
Other expense (5)	1			—			114			—
Core funds from operations	$	6,432		$	2,995		$	17,841		$	8,624
FFO	$	5,566		$	(38,330	)	$	13,361		$	(34,845	)
Preferred stock distributions	(25		)	(25		)	(75		)	(75		)
FFO available to common shares and units	$	5,541		$	(38,355	)	$	13,286		$	(34,920	)
Core FFO	$	6,432		$	2,995		$	17,841		$	8,624
Preferred stock distributions	(25		)	(25		)	(75		)	(75		)
Core FFO available to common shares and units	$	6,407		$	2,970		$	17,766		$	8,549
Weighted average common shares and units outstanding (6)	38,302,657			38,339,487			38,488,960			38,448,595
FFO per share	$	0.14		$	(1.00	)	$	0.35		$	(0.91	)
Core FFO per share	$	0.17		$	0.08		$	0.46		$	0.22

(1) Includes costs to internalize the Former Manager of $39.2 million, primarily related to issuance of common units of the Operating Partnership and to a lesser extent, certain transaction costs and assumption of certain liabilities during the three and nine months ended September 30, 2014.

(2) Includes a one-time expense for costs related to the Portfolio Acquisition.

(3) Includes a one-time expense reflected in general and administrative expense in the nine months ended September 30, 2014 to acquire the former Tampa third-party property manager.

(4) Represents non-capitalizable costs related to our Securitization Transaction for personnel and other matters.

(5) Non-comparable costs from prior periods.

(6) Represents the weighted average of common shares and common units in the Operating Partnership outstanding for the periods presented.

39

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Market risk refers to the risk of loss from adverse changes in market prices and interest rates. Our future revenue, cash flows and fair values relevant to certain financial instruments are dependent upon prevailing market interest rates. Our Securitization Loan and revolving credit facility have variable rates of interest. We are therefore most vulnerable to changes in short-term LIBOR interest rates. For discussion of our borrowing activity in the three and nine months ended September 30, 2015, see Item 2, "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” in Part I of this Quarterly Report on Form 10-Q.

There have been no material changes in our interest rate market risk during the three and nine months ended September 30, 2015. For additional information on our interest rate market risk, refer to Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2014.

Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of September 30, 2015. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. We continue to review and document our disclosure controls and procedures, including our internal controls over financial reporting, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

40

PART II

OTHER INFORMATION

Item 1.  Legal Proceedings

From time to time, we are party to claims and routine litigation arising in the ordinary course of our business, including disputes regarding title to or possession of individual properties in our portfolios. We do not believe that the results of any such claims or litigation individually, or in the aggregate, will have a material adverse effect on our business, financial position or results of operations.

Item 1A.  Risk Factors

There have been no material changes to the risk factors disclosed under the heading “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

None.

Use of Proceeds from Registered Securities

None.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Period	Total Number  of Shares Purchased	Average Price Paid Per Share (1)		Total Number of Shares  Purchased as Part of  Publicly Announced Plans  or Programs (2)	Maximum Number of Shares That May Yet be Purchased Under the Plans or Programs
July 1, 2015 - July 31, 2015 (1)	41	$	16.4800	—	1,566,676
August 1, 2015 - August 31, 2015	—	—		—	1,566,676
September 1, 2015 - September 30, 2015	—	—		—	1,566,676
Total	41	$	16.4800	—	1,566,676

(1) Consists of shares withheld to settle tax withholding obligations related to the vesting of restricted stock awards.

(2) These shares were repurchased and retired under the Company's share repurchase program authorized on July 1, 2013 and increased on November 25, 2014, pursuant to which the Company is authorized to repurchase up to 5,000,000 shares of its common stock and which does not have an expiration date.

Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not applicable.

Item 5.  Other Information

None.

Item 6.  Exhibits

(a) The attached Exhibit Index is incorporated herein by reference.

41

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 thereunto duly authorized.

		SILVER BAY REALTY TRUST CORP.
Date: November 5, 2015	By:	/s/ David N. Miller
		David N. Miller President and Chief Executive Officer (Principal Executive Officer)
Date: November 5, 2015	By:	/s/ Christine Battist
		Christine Battist Chief Financial Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)

42

EXHIBIT INDEX

Exhibit Number		Incorporated by Reference
	Description	Form	File No.	Exhibit	Filing Date
2.1	Contribution Agreement dated as of August 3, 2014 among Silver Bay Realty Trust Corp., Silver Bay Operating Partnership L.P., Pine River Domestic Management L.P., Provident Real Estate Advisors LLC, and PRCM Real Estate Advisers LLC.	8-K	001-35760	2.1	August 4, 2014
2.2	Real Estate Sales Contract, dated as of February 18, 2015, between The American Home Real Estate Investment Trust, Inc. and 2015A Property Owner LLC	10-Q	001-35760	2.2	May 7, 2015
2.3	Amendment dated June 1, 2015 to Real Estate Sales Contract dated as of February 18, 2015 with The American Home Real Estate Investment Trust, Inc.	10-Q	001-35760	2.3	August 6, 2015
2.4	Amendment dated July 1, 2015 to Real Estate Sales Contract dated as of February 18, 2015 with The American Home Real Estate Investment Trust, Inc.
2.5	Amendment dated September 1, 2015 to Real Estate Sales Contract dated as of February 18, 2015 with The American Home Real Estate Investment Trust, Inc.
2.6	Amendment dated October 1, 2015 to Real Estate Sales Contract dated as of February 18, 2015 with The American Home Real Estate Investment Trust, Inc.
3.1	Articles of Amendment and Restatement of Silver Bay Realty Trust Corp.	10-K	001-35760	3.1	March 1, 2013
3.2	Amended and Restated Bylaws of Silver Bay Realty Trust Corp.	S-11/A	333-183838	3.5	October 17, 2012
3.3	Articles Supplementary for Cumulative Redeemable Preferred Stock of Silver Bay Trust Corp.	10-K	001-35760	3.3	March 1, 2013
4.1	Specimen Common Stock Certificate of Silver Bay Realty Trust Corp.	S-11/A	333-183838	3.5	November 23, 2012
4.2	Instruments defining the rights of holders of securities: See Articles VI and VII of our Articles of Amendment and Restatement.	10-K	001-35760	4.2	March 1, 2013
4.3	Instruments defining the rights of holders of securities: See Article VII of our Amended and Restated Bylaws.	S-11/A	333-183838	3.5	October 17, 2012
4.4	Instruments defining the rights of holders of securities: See Article Second of our Articles Supplementary.	10-K	001-35760	4.4	March 1, 2013
4.5	Registration Rights Agreement by and among Silver Bay Realty Trust Corp. and certain holders of common units in Silver Bay Operating Partnership L.P., dated September 30, 2014.	10-K	001-35760	4.5	February 26, 2015
10.1	First Amendment dated as of October 20, 2015 to the Amended and Restated Revolving Credit Agreement dated as of February 18, 2015.
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

43

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

44

EX-2.4

EXECUTION VERSION

AMENDMENT TO REAL ESTATE SALES CONTRACT

This AMENDMENT TO REAL ESTATE SALES CONTRACT (this “Amendment”) is made and entered into this 1^st day of July, 2015, by and among THE AMERICAN HOME REAL ESTATE INVESTMENT TRUST, INC., a Maryland corporation (“Seller”) and 2015C PROPERTY OWNER LLC, a Delaware limited liability company (the “Buyer”).

R E C I T A L S:

WHEREAS, Seller and 2015A Property Owner LLC, a Delaware limited liability company (the “2015A Buyer”), entered into that certain Real Estate Sales Contract dated as of February 18, 2015 (as amended from time to time, the “Purchase Agreement”), which has been assigned from 2015A Buyer to Buyer (pursuant to an interim assignment), with respect to the purchase and sale of the Properties identified on Schedule 1 attached hereto (such Properties identified on Schedule 1 being the “Subject Properties”);

WHEREAS, the Subject Properties have certain leasing restrictions (the “Restrictions”); and

WHEREAS, Buyer and Seller have agreed that, notwithstanding any of the terms and provisions of the Purchase Agreement to the contrary, the purchase and sale of the Subject Properties shall be consummated in accordance with the terms of this Amendment, despite the existence of the Restrictions;

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Recitals. The foregoing recitals are hereby incorporated in the body of this Amendment as if fully rewritten and restated herein. Capitalized terms used herein and not otherwise defined shall have the meanings respectively ascribed to them in the Purchase Agreement.

2.Closing. Seller and Buyer hereby agree to consummate the purchase and sale of the Subject Properties subject to the terms of the Purchase Agreement, except to that the Purchase Price and Allocated Deposit for each Subject Property applied at this Closing shall be as reflected on Schedule 1.

3.Notices. Any notice, demand, waiver or consent required or permitted hereunder shall be in writing and shall be given by (i) by a national overnight courier service or (ii) via electronic mail, provided that, in the case of a notice sent by electronic mail, a copy of such notice is sent on the same day as the date of the electronic mail transmission by one of the other methods specified in this Paragraph 3, in each case, properly addressed to the party or parties entitled to receive such notice at the address stated below:

To Seller:

c/o Route 66, LLC (d/b/a Route 66 Ventures, LLC)

118 King Street, 2^nd Floor

Alexandria, Virginia 22314

Attn.: Jim Breheny

Email: jbreheny@route66ventures.com

With a copy to:

Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Attn: David C. Drewes, Esq.
Email: ddrewes@willkie.com

To Buyer:

2015C Property Owner LLC

3300 Fernbrook Lane North

Suite 210

Plymouth, Minnesota 55447             

Attn.: Chief Financial Officer

Email: legal@silverbaymgmt.com

With a copy to:

Sidley Austin LLP

One South Dearborn

Chicago, Illinois 60603

Attn.: John M. Rafkin, Esq.

Email: jrafkin@sidley.com

The date of any such notice and of service thereof shall be deemed to be upon the earlier of: receipt, or one (1) business day following deposit with an overnight courier, or when sent via electronic mail, provided that, in the case of a notice sent by electronic mail, a copy of such notice is sent on the same day as the date of the electronic mail transmission by one of the other methods specified in this Paragraph 3 as set forth above. Any party may change its address for the purpose of notice by giving written notice in accordance with the provisions of this Paragraph 3.

4.Entire Amendment. This Amendment constitutes the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings written and oral, among the parties with respect to such subject matter; provided, however, that nothing herein shall be construed to alter the obligations of Seller or Buyer under the Purchase Agreement.

2

5.Counterparts. This Amendment may be executed in one or more identical counterparts, all of which, when taken together shall constitute one and the same instrument.

6.Successors and Assigns. The terms and provisions of this Amendment shall be binding upon and inure to the benefit of the respective parties hereto, and their respective successors and assigns.

7.Governing Law. This Amendment shall be governed by the laws of the State of New York, without regard to its conflict of laws provisions.

8.Inconsistency; Full Force and Effect. In the event of any inconsistency between the terms of this Amendment and the terms of the Purchase Agreement, the terms of this Amendment shall control and be binding. Except as specifically amended hereby, the Purchase Agreement shall remain in full force and effect. All references to the Purchase Agreement shall be deemed to mean the Purchase Agreement as modified hereby. This Amendment shall not constitute a novation of the Purchase Agreement, but shall constitute an amendment thereof. The parties hereto agree to be bound by the terms and conditions of the Purchase Agreement, as amended by this Amendment, as though such terms and conditions were set forth therein.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

3

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.

SELLER:

THE AMERICAN HOME REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation

By:    /s/Kelly McCusker___________________
Name:    Kelly McCusker    
Title:    Chief Financial Officer

BUYER:

2015C PROPERTY OWNER LLC,

a Delaware limited liability company

By:    /s/Christine Battist______________
Name:    Christine Battist    
Title:    Chief Financial Officer

1

EX-2.5

EXECUTION VERSION

AMENDMENT TO REAL ESTATE SALES CONTRACT

This AMENDMENT TO REAL ESTATE SALES CONTRACT (this “Amendment”) is made and entered into this 1^st day of September, 2015, by and among THE AMERICAN HOME REAL ESTATE INVESTMENT TRUST, INC., a Maryland corporation (“Seller”) and 2015C PROPERTY OWNER LLC, a Delaware limited liability company (the “Buyer”).

R E C I T A L S:

WHEREAS, Seller and 2015A Property Owner LLC, a Delaware limited liability company (the “2015A Buyer”), entered into that certain Real Estate Sales Contract dated as of February 18, 2015 (as amended from time to time, the “Purchase Agreement”), which has been assigned from 2015A Buyer to Buyer (pursuant to an interim assignment), with respect to the purchase and sale of the Properties identified on Schedule 1 attached hereto (such Properties identified on Schedule 1 being the “Subject Properties”);

WHEREAS, the Subject Properties have certain leasing restrictions (the “Restrictions”); and

WHEREAS, Buyer and Seller have agreed that, notwithstanding any of the terms and provisions of the Purchase Agreement to the contrary, the purchase and sale of the Subject Properties shall be consummated in accordance with the terms of this Amendment, despite the existence of the Restrictions;

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Recitals. The foregoing recitals are hereby incorporated in the body of this Amendment as if fully rewritten and restated herein. Capitalized terms used herein and not otherwise defined shall have the meanings respectively ascribed to them in the Purchase Agreement.

2.Closing. Seller and Buyer hereby agree to consummate the purchase and sale of the Subject Properties subject to the terms of the Purchase Agreement, except to that the Purchase Price and Allocated Deposit for each Subject Property applied at this Closing shall be as reflected on Schedule 1.

3.Notices. Any notice, demand, waiver or consent required or permitted hereunder shall be in writing and shall be given by (i) by a national overnight courier service or (ii) via electronic mail, provided that, in the case of a notice sent by electronic mail, a copy of such notice is sent on the same day as the date of the electronic mail transmission by one of the other methods specified in this Paragraph 3, in each case, properly addressed to the party or parties entitled to receive such notice at the address stated below:

To Seller:

c/o Route 66, LLC (d/b/a Route 66 Ventures, LLC)

118 King Street, 2^nd Floor

Alexandria, Virginia 22314

Attn.: Jim Breheny

Email: jbreheny@route66ventures.com

With a copy to:

Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Attn: David C. Drewes, Esq.
Email: ddrewes@willkie.com

To Buyer:

2015C Property Owner LLC

3300 Fernbrook Lane North

Suite 210

Plymouth, Minnesota 55447             

Attn.: Chief Financial Officer

Email: legal@silverbaymgmt.com

With a copy to:

Sidley Austin LLP

One South Dearborn

Chicago, Illinois 60603

Attn.: Dennis M. Coghlan, Esq.

Email: dcoghlan@sidley.com

The date of any such notice and of service thereof shall be deemed to be upon the earlier of: receipt, or one (1) business day following deposit with an overnight courier, or when sent via electronic mail, provided that, in the case of a notice sent by electronic mail, a copy of such notice is sent on the same day as the date of the electronic mail transmission by one of the other methods specified in this Paragraph 3 as set forth above. Any party may change its address for the purpose of notice by giving written notice in accordance with the provisions of this Paragraph 3.

4.Entire Amendment. This Amendment constitutes the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings written and oral, among the parties with respect to such subject matter; provided, however, that nothing herein shall be construed to alter the obligations of Seller or Buyer under the Purchase Agreement.

2

5.Counterparts. This Amendment may be executed in one or more identical counterparts, all of which, when taken together shall constitute one and the same instrument.

6.Successors and Assigns. The terms and provisions of this Amendment shall be binding upon and inure to the benefit of the respective parties hereto, and their respective successors and assigns.

7.Governing Law. This Amendment shall be governed by the laws of the State of New York, without regard to its conflict of laws provisions.

8.Inconsistency; Full Force and Effect. In the event of any inconsistency between the terms of this Amendment and the terms of the Purchase Agreement, the terms of this Amendment shall control and be binding. Except as specifically amended hereby, the Purchase Agreement shall remain in full force and effect. All references to the Purchase Agreement shall be deemed to mean the Purchase Agreement as modified hereby. This Amendment shall not constitute a novation of the Purchase Agreement, but shall constitute an amendment thereof. The parties hereto agree to be bound by the terms and conditions of the Purchase Agreement, as amended by this Amendment, as though such terms and conditions were set forth therein.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

3

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.

SELLER:

THE AMERICAN HOME REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation

By:    /s/Aaron Edelheit_____________________
Name:    Aaron Edelheit        
Title:    Chief Executive Officer

BUYER:

2015C PROPERTY OWNER LLC,

a Delaware limited liability company

By:    /s/Christine Battist____________________
Name:    Christine Battist
Title:    Chief Financial Officer

1

EX-2.6

EXECUTION VERSION

AMENDMENT TO REAL ESTATE SALES CONTRACT

This AMENDMENT TO REAL ESTATE SALES CONTRACT (this “Amendment”) is made and entered into this 1^st day of October, 2015, by and among THE AMERICAN HOME REAL ESTATE INVESTMENT TRUST, INC., a Maryland corporation (“Seller”) and 2015C PROPERTY OWNER LLC, a Delaware limited liability company (the “Buyer”).

R E C I T A L S:

WHEREAS, Seller and 2015A Property Owner LLC, a Delaware limited liability company (the “2015A Buyer”), entered into that certain Real Estate Sales Contract dated as of February 18, 2015 (as amended from time to time, the “Purchase Agreement”), which has been assigned from 2015A Buyer to Buyer (pursuant to an interim assignment), with respect to the purchase and sale of the Properties identified on Schedule 1 attached hereto (such Properties identified on Schedule 1 being the “Subject Properties”);

WHEREAS, the Subject Properties have certain leasing restrictions (the “Restrictions”); and

WHEREAS, Buyer and Seller have agreed that, notwithstanding any of the terms and provisions of the Purchase Agreement to the contrary, the purchase and sale of the Subject Properties shall be consummated in accordance with the terms of this Amendment, despite the existence of the Restrictions;

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Recitals. The foregoing recitals are hereby incorporated in the body of this Amendment as if fully rewritten and restated herein. Capitalized terms used herein and not otherwise defined shall have the meanings respectively ascribed to them in the Purchase Agreement.

2.Closing. Seller and Buyer hereby agree to consummate the purchase and sale of the Subject Properties subject to the terms of the Purchase Agreement, except to that the Purchase Price and Allocated Deposit for each Subject Property applied at this Closing shall be as reflected on Schedule 1.

3.Notices. Any notice, demand, waiver or consent required or permitted hereunder shall be in writing and shall be given by (i) by a national overnight courier service or (ii) via electronic mail, provided that, in the case of a notice sent by electronic mail, a copy of such notice is sent on the same day as the date of the electronic mail transmission by one of the other methods specified in this Paragraph 3, in each case, properly addressed to the party or parties entitled to receive such notice at the address stated below:

To Seller:

c/o Route 66, LLC (d/b/a Route 66 Ventures, LLC)

118 King Street, 2^nd Floor

Alexandria, Virginia 22314

Attn.: Jim Breheny

Email: jbreheny@route66ventures.com

With a copy to:

Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Attn: David C. Drewes, Esq.
Email: ddrewes@willkie.com

To Buyer:

2015C Property Owner LLC

3300 Fernbrook Lane North

Suite 210

Plymouth, Minnesota 55447             

Attn.: Chief Financial Officer

Email: legal@silverbaymgmt.com

With a copy to:

Sidley Austin LLP

One South Dearborn

Chicago, Illinois 60603

Attn.: Dennis M. Coghlan, Esq.

Email: dcoghlan@sidley.com

The date of any such notice and of service thereof shall be deemed to be upon the earlier of: receipt, or one (1) business day following deposit with an overnight courier, or when sent via electronic mail, provided that, in the case of a notice sent by electronic mail, a copy of such notice is sent on the same day as the date of the electronic mail transmission by one of the other methods specified in this Paragraph 3 as set forth above. Any party may change its address for the purpose of notice by giving written notice in accordance with the provisions of this Paragraph 3.

4.Entire Amendment. This Amendment constitutes the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings written and oral, among the parties with respect to such subject matter; provided, however, that nothing herein shall be construed to alter the obligations of Seller or Buyer under the Purchase Agreement.

2

5.Counterparts. This Amendment may be executed in one or more identical counterparts, all of which, when taken together shall constitute one and the same instrument.

6.Successors and Assigns. The terms and provisions of this Amendment shall be binding upon and inure to the benefit of the respective parties hereto, and their respective successors and assigns.

7.Governing Law. This Amendment shall be governed by the laws of the State of New York, without regard to its conflict of laws provisions.

8.Inconsistency; Full Force and Effect. In the event of any inconsistency between the terms of this Amendment and the terms of the Purchase Agreement, the terms of this Amendment shall control and be binding. Except as specifically amended hereby, the Purchase Agreement shall remain in full force and effect. All references to the Purchase Agreement shall be deemed to mean the Purchase Agreement as modified hereby. This Amendment shall not constitute a novation of the Purchase Agreement, but shall constitute an amendment thereof. The parties hereto agree to be bound by the terms and conditions of the Purchase Agreement, as amended by this Amendment, as though such terms and conditions were set forth therein.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

3

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.

SELLER:

THE AMERICAN HOME REAL ESTATE INVESTMENT TRUST, INC.,

a Maryland corporation

By:    /s/Aaron Edelheit_____________________
Name:    Aaron Edelheit        Title:    Chief Executive Officer

BUYER:

2015C PROPERTY OWNER LLC,

a Delaware limited liability company

By:    /s/Christine Battist____________________
Name:    Christine Battist
Title:    Chief Financial Officer

1

EX-10.1

EXECUTION VERSION

FIRST AMENDMENT TO

AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

This FIRST AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this “Amendment”), is made as of October 20, 2015, by and among SB Financing Trust Owner LLC, as the borrower representative (the “Borrower Representative”), 2013-A Property Holdings LLC ("2013-A Property Holdings"), 2013B Property Owner LLC ("2013B Property Owner"), 2015B Property Owner LLC ("2015B Property Owner"), and SBY Finance TRS LLC ("SBY Finance TRS"), THPI Acquisition Holdings LLC (“THPI”), Provident Residential Real Estate Fund LLC (“Provident”), 2012-B PROPERTY HOLDINGS LLC (“2012-B Property Holdings”), 2012-C PROPERTY HOLDINGS LLC (“2012-C Property Holdings”), Desert Chill LLC (“Desert Chill”), Polar Cactus LLC (“Polar Cactus”), Polar Cactus II LLC (“Polar Cactus II”), Polar Cactus III LLC (“Polar Cactus III”), Resi II LLC (“Resi II”), and Arctic Citrus LLC (“Arctic Citrus” and together with 2012-B Property Holdings, 2012-C Property Holdings, Desert Chill, Polar Cactus, Polar Cactus II, Polar Cactus III, Resi II, THPI, Provident, 2013-A Property Holdings, 2013B Property Owner, 2015B Property Owner and SBY Finance TRS, the "Borrowers"), Silver Bay Operating Partnership L.P., a Delaware limited partnership, as the master property manager (the “Master Property Manager”), Bank of America, National Association, as Joint Lead Arranger, as a Lender and as agent for each Lender (in such capacity, the “Agent”), JPMorgan Chase Bank, National Association, as Joint Lead Arranger and a Lender and each Lender party thereto from time to time (the “Lenders”).

WHEREAS, the parties hereto have entered into that certain Amended and Restated Revolving Credit Agreement, dated as of February 18, 2015 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrowers, the Master Property Manager, the Borrower Representative, U.S. Bank National Association, as Calculation Agent and as Paying Agent, the Agent and Lenders; and

WHEREAS, the Borrowers and the Borrower Representative have requested that the Lenders amend the Credit Agreement; and

WHEREAS, the Agent and Lenders are willing to agree to amend the Credit Agreement, subject to the terms and conditions set forth in this Amendment.

NOW, THEREFORE, in consideration of the foregoing premises, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Definitions. Unless otherwise defined herein, capitalized terms used herein shall have the meanings assigned to them in the Credit Agreement, as amended hereby.

2.Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows:

a.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of "LIBOR" in its entirety and replacing it with the following:

LIBOR: With respect to each day on which any Advance is outstanding (or if such day is not a Business Day, the next succeeding Business Day) and determined daily by the Agent, the greater of (i) zero percent (0%) and (ii) the offered rate for three-month U.S. dollar deposits, as the applicable rate appears on Reuters Screen LIBOR01 Page as of 11:00 a.m. (London time) on second Business Day before such date (rounded up to the nearest whole multiple of 1/100%); provided that if the applicable rate does not appear on Reuters Screen LIBOR01 Page, the rate for such date will be based upon the offered rates of the reference banks selected by the Agent for U.S. dollar deposits as of 11:00 a.m. (London time) on second Business Day before such date. In such event, Agent will request the principal London office of each of at least three reference banks selected by Agent to provide a quotation of its rate. If on such date, two or more of such reference banks provide such offered quotations, LIBOR shall be the arithmetic mean of all such offered quotations (rounded to the nearest whole multiple of 1/100%). If on such date, fewer than two of such reference banks provide such offered quotations, LIBOR shall be the higher of (i) LIBOR as determined on the immediately preceding day that LIBOR is available and (ii) the Reserve Interest Rate. Upon determination of LIBOR by the Agent in accordance with the forgoing, the Agent shall communicate LIBOR to the Paying Agent.

b.Section 2.4(b) of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

(b)    Unless otherwise provided herein, interest and fees payable under this Agreement shall be computed on the basis of a 360 day year and the actual number of days in the related Interest Accrual Period. In computing interest on the Advances Outstanding on each day, interest shall accrue on the Advances Outstanding at the opening of business on such day; provided that no interest shall accrue on the amount of any principal payment on the date on which such principal payment is made.

3.Representations, Warranties, Covenants and Acknowledgments. To induce the Agent and the Lenders to enter into this Amendment, each Borrower and the Borrower Representative does hereby:

a.represent and warrant that, after giving effect to this Amendment, (i) as of the date hereof, all of the representations and warranties contained in the Loan Documents are true and correct in all material respects on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; (ii) as of the date hereof, no Default

or Event of Default has occurred and is continuing under the Credit Agreement or any other Loan Document; (iii) such Person has the power and is duly authorized to enter into, deliver and perform this Amendment; (iv) this Amendment is the legal, valid and binding obligation of such Person enforceable against such Person in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability; and (v) the execution, delivery and performance of this Amendment does not conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material Contractual Obligation of any such Person; and

b.reaffirm each of the agreements, covenants and undertakings set forth in the Credit Agreement and each and every other Loan Document executed in connection therewith or pursuant thereto, in each case, as amended by the terms of this Amendment; and

c.acknowledge and agree that, after giving effect to this Amendment, no right of offset, defense, recoupment, counterclaim, claim, causes of action or objection in favor of such Person against the Agent or any Lender exists as of the date hereof arising out of or with respect to (i) this Amendment, the Credit Agreement or any of the other Loan Documents or (ii) any other documents now or heretofore evidencing, securing or in any way relating to the foregoing; and

d.further acknowledge and agree that (i) except as expressly set forth herein, this Amendment is not intended, and should not be construed, as an amendment of, or any kind of waiver or consent related to, the Credit Agreement or the other Loan Documents; (ii) this Amendment shall not represent an amendment, consent or waiver related to any future actions of any Borrower, the Borrower Representative or the Master Property Manager; (iii) except as expressly set forth herein, the Agent and each Lender reserves all of their respective rights pursuant to the Credit Agreement and all other Loan Documents; and (iv) the amendments contained herein do not and shall not create (nor shall any Borrower or the Borrower Representative rely upon the existence of or claim or assert that there exists) any obligation of the Agent or the Lenders to consider or agree to any future waiver, consent or amendment and, in the event the Agent or the Lenders subsequently agree to consider any future waivers, consents or amendments, neither the amendments contained herein nor any other conduct of the Agent or any Lender shall be of any force or effect on the Agent’s or any Lender’s consideration or decision with respect to any such requested waiver, consent or amendment and neither the Agent nor any Lender shall have any further obligation whatsoever to consider or agree to future amendment, waiver, consent or agreement, and

e.further acknowledge and agree that this Amendment shall be deemed a Loan Document for all purposes.

4.Conditions to Effectiveness. The effectiveness of this Amendment is subject to the following conditions precedent:

a.Delivery of Documents. The parties hereto shall have delivered to the Agent executed counterparts of this Amendment.

b.Expenses. The Borrowers shall have paid, to the extent invoiced on or before the date hereof, to the Agent and the other Lenders all reasonable costs and expenses of the Agent and such Lenders in connection with the preparation, execution and delivery of this Amendment and all other related documents.

5.Effect; Relationship of Parties.

a.Except as expressly amended hereby, the Credit Agreement and each other Loan Document shall be and remain in full force and effect as originally written, and shall constitute the legal, valid, binding and enforceable obligations of each Borrower, the Borrower Representative and the Master Property Manager to the Agent and Lenders. On and after the date hereof, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.

b.The relationship of the Agent and Lenders, on the one hand, and each Borrower, on the other hand, has been and shall continue to be, at all times, that of creditor and debtor and not as joint venturers or partners. Nothing contained in this Amendment, any instrument, document or agreement delivered in connection herewith or in the Credit Agreement or any of the other Loan Documents shall be deemed or construed to create a fiduciary relationship between or among the parties.

6.Miscellaneous. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or other electronic transmission shall be as effective as delivery of a manually executed counterpart of this Amendment. Any party delivering anexecuted counterpart of this Amendment via facsimile or electronic mail shall also deliver a manually executed original to the Agent or its counsel, but the failure to do so does not affect the validity, enforceability or binding effect of this Amendment. This Amendment shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties hereto. This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance with the laws of the State of New York without regard to conflict of laws principles (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law) thereof. This Amendment embodies

the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written negotiations, agreements and understandings of the parties with respect to the subject matter hereof.

[signature page follows]

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized officers as of the day and year first above written.

SB FINANCING TRUST OWNER LLC, a Delaware limited liability company, as the Borrower Representative

By:    /s/Christine Battist        

Name: Christine Battist

Title: Chief Financial Officer

THPI ACQUISITION HOLDINGS LLC,PROVIDENT RESIDENTIAL REAL ESTATE FUND LLC,2012-B PROPERTY HOLDINGS LLC,2012-C PROPERTY HOLDINGS LLC,DESERT CHILL LLC,POLAR CACTUS LLC, POLAR CACTUS II LLC,POLAR CACTUS III LLC,RESI II LLC, ARCTIC CITRUS LLC,2013-A PROPERTY HOLDINGS LLC,
2013B PROPERTY OWNER LLC,
2015B PROPERTY OWNER LLC, and
SBY FINANCE TRS LLC,
each a Delaware limited liability company,
each as a Borrower

By:    SB Financing Trust Owner LLC,     a Delaware limited liability company,     Manager

By:    /s/Christine Battist        

Name: Christine Battist

Title: Chief Financial Officer

SILVER BAY OPERATING PARTNERSHIP L.P., a Delaware limited partnership, as Master Property Manager,

By:    Silver Bay Management LLC, a Delaware limited liability company, its general partner

By:    Silver Bay Realty Trust Corp., a Maryland corporation its sole member

By:    /s/Christine Battist        

Name: Christine Battist

Title: Chief Financial Officer

BANK OF AMERICA, NATIONAL ASSOCIATION, as a Lender and the Agent

By:    /s/Eileen Albus        

Name: Eileen Albus

Title: Director

JPMORGAN CHASE BANK, N.A., as a Lender

By:    /s/Raj Kothari        

Name: Raj Kothari

Title: Executive Director

ACKNOWLEDGED AND ACCEPTED,
as of the date above first written:

SB FINANCING TRUST OWNER LLC,
a Delaware limited liability company,
as Guarantor

By: /s/Christine Battist        

Name: Christine Battist

Title: Chief Financial Officer

SB FINANCING TRUST,
a Delaware Statutory Trust,
as Guarantor

By: SB Financing Trust Owner LLC,
a Delaware limited liability company,
its Administrator

By: /s/Christine Battist        

Name: Christine Battist

Title: Chief Financial Officer

SILVER BAY OPERATING PARTNERSHIP L.P.,
a Delaware limited partnership,
as Guarantor

By: Silver Bay Management LLC,
a Delaware limited liability company,
its general partner

By: Silver Bay Realty Trust Corp.,
a Maryland corporation
its sole member

By: /s/Christine Battist        

Name: Christine Battist

Title: Chief Financial Officer

SILVER BAY REALTY TRUST CORP.,
a Maryland corporation,
as Guarantor

By: /s/Christine Battist        

Name: Christine Battist

Title: Chief Financial Officer

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, David N. Miller, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Silver Bay Realty Trust Corp. (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

November 5, 2015	/s/ David N. Miller
	David N. Miller President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Christine Battist, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Silver Bay Realty Trust Corp. (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an Annual Report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

November 5, 2015	/s/ Christine Battist
	Christine Battist Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Silver Bay Realty Trust Corp. (the "Company") on Form 10-Q for the quarter ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David N. Miller, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 5, 2015	/s/ David N. Miller
	David N. Miller President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Silver Bay Realty Trust Corp. (the "Company") on Form 10-Q for the quarter ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Christine Battist, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 5, 2015	/s/ Christine Battist
	Christine Battist Chief Financial Officer and Treasurer

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Derivative and Other Fair Value Instruments (Details) - Other Assets - Recurring - Interest Rate Cap - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Recurring Fair Value
Interest Rate Caps (cash flow hedges)	$ 803	$ 58
Interest Rate Caps (not designated as hedging instruments)		13
Total		71
Level 2
Recurring Fair Value
Interest Rate Caps (cash flow hedges)	$ 803	58
Interest Rate Caps (not designated as hedging instruments)		13
Total		$ 71

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Equity Incentive Plan - Performance Stock Targets (Details) - Performance Stock Unit	Feb. 12, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annualized TSR, threshold one (percent)	6.50%
Annualized TSR, threshold two (percent)	8.00%
Annualized TSR, threshold three (percent)	10.00%
Annualized TSR, threshold four (percent)	12.00%
Annualized TSR, threshold five (percent)	16.00%
TSR Multiplier, threshold one (percent)	0.00%
TSR Multiplier, threshold two (percent)	50.00%
TSR Multiplier, threshold three (percent)	100.00%
TSR Multiplier, threshold four (percent)	150.00%
TSR Multiplier, threshold five (percent)	200.00%

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Investments in Real Estate - Narrative (Details)		3 Months Ended		9 Months Ended
	Apr. 01, 2015 USD ($)	Sep. 30, 2015 USD ($) property	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) property	Sep. 30, 2014 USD ($)	Feb. 18, 2015 USD ($)	Feb. 17, 2015 USD ($)	Dec. 31, 2014 USD ($)
Business Acquisition [Line Items]
Proceeds from disposition of real estate		$ 18,356,000	$ 1,972,000	$ 21,063,000	$ 5,406,000
Number of single-family properties owned | property		9,074		9,074
Escrow holdback		$ 23,028,000		$ 23,028,000				$ 20,211,000
Portfolio acquisition expense		66,000	0	2,046,000	0
Net gain on disposition of real estate		2,089,000	84,000	2,320,000	161,000
Impairment of Long-Lived Assets to be Disposed of		14,000	$ 197,000	46,000	$ 591,000
Revolving Credit Facility
Business Acquisition [Line Items]
Maximum borrowing capacity						$ 400,000,000	$ 200,000,000
Escrow holdback		$ 15,950,000		$ 15,950,000				$ 6,457,000
Line of Credit [Member] | Revolving Credit Facility
Business Acquisition [Line Items]
Maximum borrowing capacity						$ 400,000,000	$ 200,000,000
Portfolio Acquisition
Business Acquisition [Line Items]
Number of single-family properties owned | property		2,456		2,456
Aggregate purchase price	$ 263,000,000
Escrow holdback		$ 7,890,000		$ 7,890,000
Claim period		15 months

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Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Calculation of basic and diluted earnings (loss) per share
Net loss attributable to controlling interests	$ (1,343)	$ (44,870)	$ (8,623)	$ (54,205)
Preferred stock distributions	(25)	(25)	(75)	(75)
Net loss attributable to common stockholders	$ (1,368)	$ (44,895)	$ (8,698)	$ (54,280)
Basic and diluted weighted average common shares outstanding	36,071,146	38,315,231	36,257,449	38,440,421
Net loss per common share - basic and diluted (in dollars per share)	$ (0.04)	$ (1.17)	$ (0.24)	$ (1.41)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common units excluded from the calculation of diluted EPS as their inclusion would not be dilutive (in shares)	2,231,511		2,231,511
Performance Stock Unit
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of common units excluded from the calculation of diluted EPS as their inclusion would not be dilutive (in shares)	165,000		165,000

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Investments in Real Estate

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Investments in Real Estate

Investments in Real Estate

Acquisition of The American Home Real Estate Investment Trust, Inc. Portfolio

As of April 1, 2015, the Company substantially completed the Portfolio Acquisition of the portfolio of properties from TAH. During the nine months ended September 30, 2015, the Company acquired 2,456 properties from TAH. The aggregate purchase price for the Portfolio Acquisition was $263,000.The Portfolio Acquisition was financed using proceeds obtained under the Company's revolving credit facility, which was amended and restated on February 18, 2015 to increase the borrowing capacity to $400,000 from $200,000 (see Note 4). The homes are primarily located in Atlanta, GA, Charlotte, NC, Tampa, FL, and Orlando, FL. Information regarding the Portfolio Acquisition is detailed in these notes to the Company’s condensed financial statements reflect the full acquisition of the portfolio.

The purchase price included a holdback of $7,890, which is held by a third-party escrow agent on TAH's behalf under the terms of an escrow agreement and will be used to satisfy any claims by the Company made within 15 months of the closing date, including for breach by TAH or certain of its subsidiaries under the purchase agreement.     

The Company also incurred $66 and $2,046 in transaction expenses associated with the Portfolio Acquisition in the three and nine months ended September 30, 2015. These costs are expensed as incurred in accordance with Codification Topic 805 Business Combinations and are included in portfolio acquisition expense in the condensed consolidated statements of operations and comprehensive loss.

The following table summarizes the acquisition date fair values of the assets and liabilities acquired as part of the Portfolio Acquisition:

Land	$	55,684
Buildings and improvements	207,316
Estimated fair value of assets and liabilities acquired	$	263,000

These preliminary allocations are subject to revision within the measurement period, not to exceed one year from the date of the Portfolio Acquisition.

The following table illustrates the effect on net income, earnings per share - basic and diluted as if the Company had completed the Portfolio Acquisition on January 1, 2014:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Revenue (1)	$	30,617		$	26,113		$	89,668		$	74,854
Net loss (1) (2) (3)	$	(1,361	)	$	(47,437	)	$	(9,296	)	$	(65,126	)
Net loss attributable to common shareholders (1) (2) (3)	$	(1,302	)	$	(47,462	)	$	(8,840	)	$	(65,201	)
Loss per share - basic and diluted (1) (2) (3)	$	(0.04	)	$	(1.24	)	$	(0.24	)	$	(1.70	)
Common shares outstanding	36,071,146			38,315,231			36,257,449			38,440,421

⁽¹⁾ The unaudited pro forma information includes revenue and operating expenses based on the historical operations of TAH as well the Company and does not purport to be indicative of what the Company's operating results would have been had the Portfolio Acquisition occurred on January 1, 2014.

⁽²⁾ Assumes portfolio acquisition expense for the three and nine months ended September 30, 2015 had been incurred on January 1, 2014, and thus is included in the nine months ended September 30, 2014.

⁽³⁾ Includes net gain on disposition of real estate as noted in the condensed consolidated statements of operations and comprehensive loss.

Sale of Real Estate Assets

During the three and nine months ended September 30, 2015, the Company sold its Houston portfolio along with certain other properties for an aggregate sales price of $18,356 and $21,063, respectively, resulting in an aggregate net gain of $2,089 and $2,320, respectively, which has been classified as net gain on disposition of real estate in the condensed consolidated statements of operations and comprehensive loss. In connection with these asset sales, certain debt repayments were made that are more fully described in Note 4. In accordance with ASC 2014-08, the disposals were not considered a discontinued operation. Any holding costs associated with homes being sold are reflected within held for sale expenses and are classified as other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

During the three and nine months ended September 30, 2014, the Company sold certain properties for an aggregate sales price of $1,972 and $5,406, respectively, resulting in an aggregate net gain of $84 and $161, respectively.

In connection with assets held for sale, the Company recognized $14 and $46 in impairment charges for the three and nine months ended September 30, 2015 and $197 and $591 in impairment charges for the three and nine months ended September 30, 2014 classified within other income (expense).

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Debt - Revolving Credit Facility (Details) - USD ($)			3 Months Ended		9 Months Ended
	Feb. 18, 2015	Feb. 17, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Line of Credit Facility [Line Items]
Revolving credit facility			$ 344,254,000		$ 344,254,000		$ 67,096,000
Escrow deposits			23,028,000		23,028,000		20,211,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 400,000,000	$ 200,000,000
Interest rate margin (as a percent)		3.50%
Interest rate, variable interest rate floor (as a percent)		0.50%
Baseline for unused commitment fee	$ 200,000,000
Maximum amount allowed to be drawn under credit facility as a percentage of aggregate value of eligible properties	65.00%	55.00%
Revolving credit facility			344,254,000		$ 344,254,000		67,096,000
Weighted average interest rate (as a percent)					3.40%	4.00%
Gross interest expense			2,989,000	$ 1,302,000	$ 6,898,000	$ 5,549,000
Escrow deposits			$ 15,950,000		15,950,000		$ 6,457,000
Revolving Credit Facility | Maximum
Line of Credit Facility [Line Items]
Monthly fee on the unused portion of the credit facility (as a percent)	0.50%
Revolving Credit Facility | Minimum
Line of Credit Facility [Line Items]
Monthly fee on the unused portion of the credit facility (as a percent)	0.30%
Total liquidity to be maintained as defined by the agreement					25,000,000
Net worth to be maintained as defined by the agreement					125,000,000
Revolving Credit Facility | Company and Operating Partnership
Line of Credit Facility [Line Items]
Maximum amount guaranteed for completion of certain property renovations					$ 20,000,000
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Interest rate margin (as a percent)	3.00%
Interest rate, variable interest rate floor (as a percent)	0.00%

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Debt - Securitization Loan (Details) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 12, 2014 USD ($) property extension class component	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Proceeds from securitization loan				$ 0	$ 311,164
Number of classes of pass-through certificates | class	6
Payments on securitization loan				6,866	615
Escrow deposits		$ 23,028		23,028		$ 20,211
Escrow Deposit
Debt Instrument [Line Items]
Escrow deposits		2,786		2,786		$ 3,542
Secured Debt
Debt Instrument [Line Items]
Number of single-family properties pledged as security | property	3,084
Debt servicing fee	0.1355%
Number of extension options | extension	3
Length of loan extensions	12 months
Term of debt instrument	2 years
Gross interest expense		1,706	$ 914	$ 5,081	$ 914
Weighted average interest rate (as a percent)				2.18%		2.11%
Escrow deposits		$ 4,055		$ 4,055		$ 4,635
Secured Debt | Securitization Transaction
Debt Instrument [Line Items]
Proceeds from securitization loan	$ 311,164
Original issue discount	1,503
Face amount of debt instrument	$ 312,667
Number of floating rate components | component	6
Secured Debt | Securitization Transaction | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate margin (as a percent)	1.92%			1.94%

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Debt - Deferred Financing Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revolving Credit Facility
Debt Instrument [Line Items]
Deferred financing costs incurred	$ 21	$ 28	$ 5,323	$ 1,726
Amortization of deferred financing costs	582	345	1,558	1,313
Secured Debt
Debt Instrument [Line Items]
Deferred financing costs incurred	0		460
Amortization of deferred financing costs	585	$ 302	1,752	$ 302
Secured Debt | Houston Portfolio
Debt Instrument [Line Items]
Write off of deferred financing costs	$ 0		$ 174

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Debt - Interest Rate Cap Agreements and Capitalized Interest (Details)			3 Months Ended			9 Months Ended
	Feb. 18, 2015 USD ($)	Jan. 28, 2015 USD ($)	Sep. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) agreement
Debt Instrument [Line Items]
Number of interest rate cap agreements | agreement								4
Aggregate purchase price						$ 2,250,000	$ 393,000
Secured Debt
Debt Instrument [Line Items]
Number of interest rate cap agreements | agreement								1
Revolving Credit Facility
Debt Instrument [Line Items]
Number of interest rate cap agreements | agreement								3
Interest costs capitalized			$ 0		$ 251,000	$ 311,000	$ 497,000
Interest Rate Cap | Secured Debt
Debt Instrument [Line Items]
Aggregate notional amount		$ 200,000,000						$ 312,667,000
Aggregate purchase price		$ 1,383,000
Interest Rate Cap | Secured Debt | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate cap		3.1085%						3.1085%
Interest Rate Cap | Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate notional amount	$ 83,000,000			$ 266,100,000				$ 245,000,000
Aggregate sales price	4,000
Aggregate purchase price	$ 272,000			$ 595,000
Interest Rate Cap | Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate cap	3.00%			3.00%				3.00%

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Basis of Presentation and Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Consolidation and Basis of Presentation

The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), have been condensed or omitted according to such SEC rules and regulations. Management believes, however, that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2015 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 30, 2015 may not be indicative of the results for a full year.  

The accompanying condensed consolidated financial statements include the accounts of the Company and the Operating Partnership. The Company consolidates real estate partnerships and other entities that are not variable interest entities when it owns, directly or indirectly, a majority voting interest in the entity or is otherwise able to control the entity. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions regarding future events that may affect the reported amounts and disclosures in the financial statements. The Company’s estimates are inherently subjective in nature and actual results could differ from these estimates.

Reclassifications

Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the previously reported results of operations or stockholders' equity.

Assets Held for Sale

The Company evaluates its long-lived assets on a regular basis to ensure the individual properties still meet its investment criteria. If the Company determines that an individual property no longer meets its investment criteria, a decision is made to dispose of the property. The property is subject to the Company’s impairment test and any losses are recognized immediately. The Company then markets the property for sale and classifies it as held for sale in the consolidated financial statements.

In 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which raises the threshold for disposals to qualify as discontinued operations. A discontinued operation is defined as: (1) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (2) an acquired business that is classified as held for sale on the acquisition date. ASU 2014-08 also requires additional disclosures regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The application of this guidance is prospective from the date of adoption and applies only to disposals (or new classifications to held for sale) that have not been reported as discontinued operations or held for sale in previously issued financial statements. The Company adopted ASU 2014-08 during the quarter ended March 31, 2015.

Equity Incentive Plan

The Company adopted an equity incentive plan which provides incentive compensation to attract and retain qualified directors, officers, advisors, consultants and other personnel of the Company. The plan permits the granting of stock options, restricted shares of common stock, restricted stock units, phantom shares, dividend equivalent rights, or other equity-based awards. The equity incentive plan is administered by the compensation committee of the Company’s board of directors. 

The cost of restricted shares of common stock awarded to independent directors is based on the fair market value of the Company’s stock as of the date of grant, in accordance with Codification Topic Compensation - Stock Compensation (“ASC 718”). Prior to the Internalization, the cost of restricted shares of common stock awarded to employees of the Former Manager and the Former Manager’s operating subsidiary were measured at each reporting date based on the price of the Company’s stock as of period end, in accordance with Codification Topic Equity (“ASC 505”). On the date of the Internalization, the employees of the Former Manager and the Former Manager's operating subsidiary became employees of the Company and the Company fixed the measurement of the awards to the respective employees to the stock price as of such date in accordance with ASC 718. The respective awards will not be subsequently remeasured and future awards to employees, subsequent to the Internalization, will be measured based on the price of the Company's stock as of the date of grant in accordance with ASC 718.  All restricted stock awards are amortized ratably over the applicable service period.

The Company recognizes compensation expense for performance stock units ("PSU") based on the grant-date fair value and the service period of the respective awards. These units represent shares potentially issuable in the future based upon

the Company's stock performance over a three-year performance period. Fair value of the PSU's are estimated using a Monte-Carlo simulation model.

Recent Accounting Pronouncements

Under the Jumpstart Our Business Startups Act (the "JOBS Act"), the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.

The Company considers the applicability and impact of all accounting standard updates ("ASUs"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial position or results of operations.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for interim or annual periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption. Early adoption of this standard is only allowed as of the original effective date, annual periods beginning after December 15, 2016. The Company is currently evaluating the impact the adoption of Topic 606 will have on its consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. This update is intended to improve targeted areas of consolidation guidance by simplifying the consolidation evaluation process, and by placing more emphasis on risk of loss when determining a controlling financial interest. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs for term debt in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The impact will be a reduction of other assets and the associated reported debt liability related to the securitization loan.

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Equity Incentive Plan - Narrative (Details) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended
	May. 20, 2015 USD ($) shares	Feb. 13, 2015 item $ / shares shares	Feb. 12, 2015 $ / shares shares	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation | $				$ 718	$ 259	$ 1,895	$ 716
Restricted Stock | Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants (in shares)			69,605
Granted (in dollars per share) | $ / shares			$ 15.72
Vesting period			1 year
Restricted Stock | Certain Personnel
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants (in shares)		56,385
Granted (in dollars per share) | $ / shares		$ 15.67
Number of annual installments | item		3
Restricted Stock | Independent Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants (in shares)	16,110
Fair market value of restricted stock award | $	$ 50
Vesting period	1 year
Performance Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants (in shares)			165,000
Granted (in dollars per share) | $ / shares			$ 7.00
Share-based compensation | $				96		243
Unrecognized compensation expense | $				$ 912		$ 912
Performance Stock Unit | Certain Executives and Senior Management
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years

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Derivative and Other Fair Value Instruments (Details 2) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Effect of cash flow hedges
Reclassification from accumulated other comprehensive loss to interest expense	$ 0	$ (481)
Fair Value of Other Financial Instruments
Cumulative redeemable preferred stock, stated dividend rate percentage (as a percent)	10.00%		10.00%
Securitization Transaction | Level 2 | Secured Debt
Fair Value of Other Financial Instruments
Fair value of long term-debt	$ 296,821
Interest Rate Cap
Effect of cash flow hedges
Deferred losses in AOCL related to interest rate cap agreements	1,589		$ 86
Interest expense to be recognized within next twelve months which will be reclassified out of accumulated other comprehensive loss	181
Interest Rate Cap | Interest Expense
Effect of cash flow hedges
Losses related to the change in fair value of interest rate caps not designated as cash flow hedges	9
Cash Flow Hedging | Interest Rate Cap
Effect of cash flow hedges
Amount of Gain (Loss) Recognized in Other Comprehensive Income Loss on Derivative	(1,503)	(208)
Cash Flow Hedging | Interest Rate Cap | Interest Expense
Effect of cash flow hedges
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income, Effective Portion	(1)	(1)
Reclassification from accumulated other comprehensive loss to interest expense	$ 0	$ (480)

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Investments in real estate:
Land	$ 221,158	$ 167,780
Building and improvements	990,405	780,590
Investments in real estate, gross	1,211,563	948,370
Accumulated depreciation	(65,534)	(43,150)
Investments in real estate, net	1,146,029	905,220
Assets held for sale	11,224	2,010
Cash and cash equivalents	41,026	49,854
Escrow deposits	23,028	20,211
Resident security deposits	12,331	8,595
In-place lease and deferred lease costs, net	730	688
Deferred financing costs, net	14,229	11,960
Other assets	6,105	3,842
Total assets	1,254,702	1,002,380
Liabilities:
Securitization loan, net of unamortized discount of $1,161 and $1,387, respectively	304,025	310,665
Revolving credit facility	344,254	67,096
Accounts payable and accrued property expenses	24,400	13,090
Resident prepaid rent and security deposits	13,957	9,634
Total liabilities	686,636	400,485
10% cumulative redeemable preferred stock at liquidation value, $0.01 par; 50,000,000 authorized, 1,000 issued and outstanding	1,000	1,000
Stockholders’ equity:
Common stock $0.01 par; 450,000,000 shares authorized; 36,071,059 and 36,711,694, respectively, shares issued and outstanding	358	366
Additional paid-in capital	651,148	660,776
Accumulated other comprehensive loss	(1,589)	(86)
Cumulative deficit	(115,888)	(94,593)
Total stockholders’ equity	534,029	566,463
Noncontrolling interests - Operating Partnership	33,037	34,432
Total equity	567,066	600,895
Total liabilities and equity	$ 1,254,702	$ 1,002,380

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Condensed Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows From Operating Activities:
Net loss	$ (9,154)	$ (54,205)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	25,074	18,800
Non-cash management internalization	0	36,173
Non-cash share-based compensation	1,826	716
Losses reclassified into earnings from other comprehensive loss	0	481
Amortization and write-off of deferred financing costs	3,341	2,673
Amortization of discount on securitization loan	225	41
Net gain on disposition of real estate	(2,320)	(161)
Other	1,129	1,226
Net change in assets and liabilities:
(Increase) decrease in escrow cash for operating activities and debt reserves	(3,776)	5,962
Increase in deferred lease fees and other assets	(3,733)	(1,453)
Increase in accounts payable, accrued property expenses, and prepaid rent	10,459	6,435
Decrease in related party payables, net	0	(7,611)
Net cash provided by operating activities	23,071	9,077
Cash Flows From Investing Activities:
Purchase of investments in real estate	(272,679)	(79,590)
Capital improvements of investments in real estate	(20,698)	(24,217)
Increase (decrease) in escrow cash for investing activities	959	(1,587)
Proceeds from disposition of real estate	21,063	5,406
Cash acquired in management internalization	0	2,067
Other	(43)	(218)
Net cash used by investing activities	(271,398)	(98,139)
Cash Flows From Financing Activities:
Proceeds from securitization loan	0	311,164
Payments on securitization loan	(6,866)	(615)
Proceeds from revolving credit facility	281,963	70,683
Paydown of revolving credit facility	(4,805)	(235,508)
Deferred financing costs paid	(5,783)	(12,201)
Purchase of interest rate cap agreements	(2,250)	(393)
Repurchase and retirement of common stock	(12,326)	(14,711)
Dividends paid	(10,434)	(2,760)
Net cash provided by financing activities	239,499	115,659
Net change in cash and cash equivalents	(8,828)	26,597
Cash and cash equivalents at beginning of period	49,854	43,717
Cash and cash equivalents at end of period	41,026	70,314
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	11,397	5,978
Decrease in fair value of interest rate cap agreements	1,503	208
Noncash investing and financing activities:
Common stock and unit dividends declared, but not paid	4,572	1,514
Capital improvements in accounts payable	$ 1,058	$ 2,352
Non-cash management internalization transaction:
Issuance of units to noncontrolling units	0	36,173
Other liabilities acquired in management internalization	$ 0	$ (2,067)

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Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015	Nov. 25, 2014	Sep. 30, 2014	Jul. 01, 2013
Share Repurchase Plan
Number of shares authorized to be repurchased (in shares)		5,000,000
Increase in number of shares authorized to be repurchased (shares)		2,500,000
Average purchase price (in dollars per share)			$ 16.21
Share repurchase program
Share Repurchase Plan
Number of shares authorized to be repurchased (in shares)				2,500,000
Number of shares repurchased (in shares)	770,417
Total cost of shares repurchased	$ 12,260
Average purchase price (in dollars per share)	$ 15.91

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Derivative and Other Fair Value Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair value measurements for interest rate cap agreements and location within condensed consolidated balance sheets

The following tables provide a summary of the aggregate fair value measurements for the interest rate cap agreements and the location within the condensed consolidated balance sheets at September 30, 2015 and December 31, 2014, respectively:

				Fair Value Measurements at Reporting Date Using
Description	Balance Sheet Location	September 30, 2015		Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1)		Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2)		Significant Unobservable Inputs (Level 3)
Interest Rate Caps (cash flow hedges)	Other Assets	$	803	$	—	$	803	$	—

				Fair Value Measurements at Reporting Date Using
Description	Balance Sheet Location	December 31, 2014		Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1)		Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2)		Significant Unobservable Inputs (Level 3)
Interest Rate Caps (cash flow hedges)	Other Assets	$	58	$	—	$	58	$	—
Interest Rate Caps (not designated as hedging instruments)	Other Assets	13		—		13		—
Total		$	71	$	—	$	71	$	—

Summary of effect of cash flow hedges

The following table provides a summary of the effect of cash flow hedges on the Company's condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2015:

	Effective Portion							Ineffective Portion
Type of Cash Flow Hedge	Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative			Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Interest Rate Caps	$	(1,503	)	Interest Expense	$	(1	)	Ineffectiveness of Interest Rate Cap Agreements	$	—

The following table provides a summary of the effect of cash flow hedges on the Company's condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2014:

	Effective Portion							Ineffective Portion
Type of Cash Flow Hedge	Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative			Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Interest Rate Caps	$	(208	)	Interest Expense	$	(1	)	Ineffectiveness of Interest Rate Cap Agreements	$	(480	)

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Stockholders' Equity - Common and Preferred Stock Dividends (Details) - $ / shares																				9 Months Ended	12 Months Ended
	Oct. 16, 2015	Sep. 29, 2015	Sep. 25, 2015	Jul. 10, 2015	Jun. 30, 2015	Jun. 17, 2015	Apr. 17, 2015	Mar. 25, 2015	Jan. 09, 2015	Dec. 18, 2014	Oct. 03, 2014	Sep. 04, 2014	Jul. 11, 2014	Jun. 30, 2014	Jun. 25, 2014	Jun. 19, 2014	Apr. 04, 2014	Apr. 02, 2014	Mar. 13, 2014	Sep. 30, 2015	Dec. 31, 2014
Common and Preferred Stock Dividends
Cash dividend per share declared, common stock (in dollars per share)			$ 0.12			$ 0.12		$ 0.09		$ 0.06		$ 0.04				$ 0.03			$ 0.03
Cash dividend per share paid, common stock (in dollars per share)				$ 0.12			$ 0.09		$ 0.06		$ 0.04		$ 0.03				$ 0.03
Cumulative redeemable preferred stock, stated dividend rate percentage (as a percent)																				10.00%	10.00%
Cash dividend per share declared, preferred stock (in dollars per share)		$ 26.67				$ 23.06		$ 27.22	26.67		22.78				$ 26.94			$ 23.33
Cash dividend per share paid, preferred stock (in dollars per share)					$ 23.06		$ 27.22		$ 26.67		$ 22.78			$ 26.94			$ 23.33
Subsequent Event
Common and Preferred Stock Dividends
Cash dividend per share paid, common stock (in dollars per share)	$ 0.12
Cash dividend per share paid, preferred stock (in dollars per share)	$ 26.67

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Basis of Presentation and Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2015
Performance Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

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Organization and Operations

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Operations

Organization and Operations

Silver Bay Realty Trust Corp. ("Silver Bay" or the "Company"), is a Maryland corporation that focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States.

As of September 30, 2015, the Company owned 9,074 single-family properties, excluding assets held for sale, in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas.

As of April 1, 2015, the Company substantially completed the acquisition (the "Portfolio Acquisition") of the portfolio of properties from The American Home Real Estate Investment Trust ("TAH"), a Maryland corporation. During the nine months ended September 30, 2015, the Company acquired 2,456 properties (the “Acquired Properties”). The homes are primarily located in Atlanta, GA, Charlotte, NC, Tampa, FL, and Orlando, FL. See Note 3 for further description of this transaction.

In connection with its initial public offering the Company restructured its ownership to conduct its business through a traditional umbrella partnership ("UPREIT structure") in which substantially all of its assets are held by, and its operations are conducted through, Silver Bay Operating Partnership L.P. (the "Operating Partnership"), a Delaware limited partnership. The Company's wholly owned subsidiary, Silver Bay Management LLC, is the sole general partner of the Operating Partnership. As of September 30, 2015, the Company owned, through a combination of direct and indirect interests, 94.2% of the partnership interests in the Operating Partnership.

The Company has elected to be treated as a real estate investment trust ("REIT") for U.S. federal tax purposes, commencing with, and in connection with the filing of its federal tax return for, its taxable year ended December 31, 2012. As a REIT, the Company will generally not be subject to federal income tax on the taxable income that it distributes to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax at regular corporate rates. Even if it qualifies for taxation as a REIT, the Company may be subject to some federal, state and local taxes on its income or property. In addition, the income of any taxable REIT subsidiary ("TRS") that the Company owns will be subject to taxation at regular corporate rates.

Through September 30, 2014, the Company was externally managed by PRCM Real Estate Advisers LLC (the "Former Manager"). During this time, the Company relied on the Former Manager to provide or obtain on its behalf the personnel and services necessary for it to conduct its business as the Company had no employees of its own. On September 30, 2014, the Company closed a transaction to internalize its management (the "Internalization") and now owns all material assets and intellectual property rights of the Former Manager previously used in the conduct of its business and continues to be managed by officers and employees who worked for the Former Manager and who became employees of the Company as a result of the Internalization.

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Securitization loan, unamortized discount	$ 1,161	$ 1,387
Cumulative redeemable preferred stock, stated dividend rate percentage (as a percent)	10.00%	10.00%
10% cumulative redeemable preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
10% cumulative redeemable preferred stock, shares authorized	50,000,000	50,000,000
10% cumulative redeemable preferred stock, shares issued	1,000	1,000
10% cumulative redeemable preferred stock, shares outstanding	1,000	1,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	36,071,059	36,711,694
Common stock, shares outstanding	36,071,059	36,711,694

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Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Basis of Presentation and Significant Accounting Policies

Consolidation and Basis of Presentation

Consolidation and Basis of Presentation

The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), have been condensed or omitted according to such SEC rules and regulations. Management believes, however, that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at September 30, 2015 and results of operations for all periods presented have been made. The results of operations for the three and nine months ended September 30, 2015 may not be indicative of the results for a full year.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and the Operating Partnership. The Company consolidates real estate partnerships and other entities that are not variable interest entities when it owns, directly or indirectly, a majority voting interest in the entity or is otherwise able to control the entity. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions regarding future events that may affect the reported amounts and disclosures in the financial statements. The Company’s estimates are inherently subjective in nature and actual results could differ from these estimates.

Reclassifications

Reclassifications

Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the previously reported results of operations or stockholders' equity.

Assets Held for Sale

Assets Held for Sale

The Company evaluates its long-lived assets on a regular basis to ensure the individual properties still meet its investment criteria. If the Company determines that an individual property no longer meets its investment criteria, a decision is made to dispose of the property. The property is subject to the Company’s impairment test and any losses are recognized immediately. The Company then markets the property for sale and classifies it as held for sale in the consolidated financial statements.

In 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which raises the threshold for disposals to qualify as discontinued operations. A discontinued operation is defined as: (1) a component of an entity or group of components that has been disposed of or classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results; or (2) an acquired business that is classified as held for sale on the acquisition date. ASU 2014-08 also requires additional disclosures regarding discontinued operations, as well as material disposals that do not meet the definition of discontinued operations. The application of this guidance is prospective from the date of adoption and applies only to disposals (or new classifications to held for sale) that have not been reported as discontinued operations or held for sale in previously issued financial statements. The Company adopted ASU 2014-08 during the quarter ended March 31, 2015.

Equity Incentive Plan

Equity Incentive Plan

The Company adopted an equity incentive plan which provides incentive compensation to attract and retain qualified directors, officers, advisors, consultants and other personnel of the Company. The plan permits the granting of stock options, restricted shares of common stock, restricted stock units, phantom shares, dividend equivalent rights, or other equity-based awards. The equity incentive plan is administered by the compensation committee of the Company’s board of directors. 

The cost of restricted shares of common stock awarded to independent directors is based on the fair market value of the Company’s stock as of the date of grant, in accordance with Codification Topic Compensation - Stock Compensation (“ASC 718”). Prior to the Internalization, the cost of restricted shares of common stock awarded to employees of the Former Manager and the Former Manager’s operating subsidiary were measured at each reporting date based on the price of the Company’s stock as of period end, in accordance with Codification Topic Equity (“ASC 505”). On the date of the Internalization, the employees of the Former Manager and the Former Manager's operating subsidiary became employees of the Company and the Company fixed the measurement of the awards to the respective employees to the stock price as of such date in accordance with ASC 718. The respective awards will not be subsequently remeasured and future awards to employees, subsequent to the Internalization, will be measured based on the price of the Company's stock as of the date of grant in accordance with ASC 718.  All restricted stock awards are amortized ratably over the applicable service period.

The Company recognizes compensation expense for performance stock units ("PSU") based on the grant-date fair value and the service period of the respective awards. These units represent shares potentially issuable in the future based upon

the Company's stock performance over a three-year performance period. Fair value of the PSU's are estimated using a Monte-Carlo simulation model.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Under the Jumpstart Our Business Startups Act (the "JOBS Act"), the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies.

The Company considers the applicability and impact of all accounting standard updates ("ASUs"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial position or results of operations.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for interim or annual periods beginning after December 15, 2017 and allows for either full retrospective or modified retrospective adoption. Early adoption of this standard is only allowed as of the original effective date, annual periods beginning after December 15, 2016. The Company is currently evaluating the impact the adoption of Topic 606 will have on its consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. This update is intended to improve targeted areas of consolidation guidance by simplifying the consolidation evaluation process, and by placing more emphasis on risk of loss when determining a controlling financial interest. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. The Company is currently in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which changes the presentation of debt issuance costs for term debt in financial statements. ASU 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The impact will be a reduction of other assets and the associated reported debt liability related to the securitization loan.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Document and Entity Information
Entity Registrant Name	SILVER BAY REALTY TRUST CORP.
Entity Central Index Key	0001557255
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		36,069,677
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

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Investments in Real Estate (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Schedule of Recognized Identified Assets and Liabilities Acquired

The following table summarizes the acquisition date fair values of the assets and liabilities acquired as part of the Portfolio Acquisition:

Land	$	55,684
Buildings and improvements	207,316
Estimated fair value of assets and liabilities acquired	$	263,000

Pro Forma Information

The following table illustrates the effect on net income, earnings per share - basic and diluted as if the Company had completed the Portfolio Acquisition on January 1, 2014:

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
Revenue (1)	$	30,617		$	26,113		$	89,668		$	74,854
Net loss (1) (2) (3)	$	(1,361	)	$	(47,437	)	$	(9,296	)	$	(65,126	)
Net loss attributable to common shareholders (1) (2) (3)	$	(1,302	)	$	(47,462	)	$	(8,840	)	$	(65,201	)
Loss per share - basic and diluted (1) (2) (3)	$	(0.04	)	$	(1.24	)	$	(0.24	)	$	(1.70	)
Common shares outstanding	36,071,146			38,315,231			36,257,449			38,440,421

⁽¹⁾ The unaudited pro forma information includes revenue and operating expenses based on the historical operations of TAH as well the Company and does not purport to be indicative of what the Company's operating results would have been had the Portfolio Acquisition occurred on January 1, 2014.

⁽²⁾ Assumes portfolio acquisition expense for the three and nine months ended September 30, 2015 had been incurred on January 1, 2014, and thus is included in the nine months ended September 30, 2014.

⁽³⁾ Includes net gain on disposition of real estate as noted in the condensed consolidated statements of operations and comprehensive loss.

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Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Rental income	$ 29,919	$ 19,361	$ 81,184	$ 55,821
Other income	698	613	1,869	1,436
Total revenue	30,617	19,974	83,053	57,257
Expenses:
Property operating and maintenance	6,529	4,787	16,479	12,537
Real estate taxes	3,918	2,732	11,864	8,011
Homeowners’ association fees	512	334	1,465	993
Property management	3,167	2,336	8,262	7,569
Depreciation and amortization	9,068	6,427	25,074	18,800
Advisory management fee - affiliates	0	2,251	0	6,621
Management internalization	0	39,179	0	39,179
Portfolio acquisition expense	66	0	2,046	0
General and administrative	3,973	2,157	12,071	7,323
Share-based compensation	718	259	1,895	716
Interest expense	5,959	3,741	15,307	8,710
Total expenses	33,910	64,203	94,463	110,459
Loss before other income (expense) and non-controlling interests	(3,293)	(44,229)	(11,410)	(53,202)
Net gain on disposition of real estate	2,089	84	2,320	161
Ineffectiveness of interest rate cap agreements	0	(480)	0	(480)
Other expense	(223)	(245)	(64)	(684)
Total other income (expense)	1,866	(641)	2,256	(1,003)
Net loss	(1,427)	(44,870)	(9,154)	(54,205)
Net loss attributable to noncontrolling interests - Operating Partnership	84	0	531	0
Net loss attributable to controlling interests	(1,343)	(44,870)	(8,623)	(54,205)
Preferred stock distributions	(25)	(25)	(75)	(75)
Net loss attributable to common stockholders	$ (1,368)	$ (44,895)	$ (8,698)	$ (54,280)
Loss per share - basic and diluted:
Net loss attributable to common shares (in dollars per share)	$ (0.04)	$ (1.17)	$ (0.24)	$ (1.41)
Weighted average common shares outstanding	36,071,146	38,315,231	36,257,449	38,440,421
Comprehensive Loss:
Net loss	$ (1,427)	$ (44,870)	$ (9,154)	$ (54,205)
Other comprehensive loss:
Change in fair value of interest rate cap agreements	(1,014)	15	(1,503)	(208)
Losses reclassified into earnings from other comprehensive (loss) income	0	481	0	481
Other comprehensive (loss) income	(1,014)	496	(1,503)	273
Comprehensive loss	(2,441)	(44,374)	(10,657)	(53,932)
Less comprehensive loss attributable to noncontrolling interests - Operating Partnership	84	0	531	0
Comprehensive loss attributable to controlling interests	$ (2,357)	$ (44,374)	$ (10,126)	$ (53,932)

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Stockholders' Equity

9 Months Ended

Sep. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock

On July 1, 2013, the Company’s board of directors authorized the Company to repurchase up to 2,500,000 shares of its common stock through a share repurchase program. On November 25, 2014, the Company's board of directors authorized an increase of 2,500,000 shares to the previously authorized share repurchase program for a total of 5,000,000 shares. Shares may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, or by any combination of such methods. The manner, price, number and timing of share repurchases will be subject to a variety of factors, including market conditions and applicable SEC rules.

In the nine months ended September 30, 2015, the Company repurchased and retired 770,417 shares under the program for a total cost of $12,260, at an average purchase price of $15.91, inclusive of commissions.

Common Stock Dividends

The following table presents cash dividends declared by the Company on its common stock during the three months ended September 30, 2015, and the six immediately preceding quarters:

Declaration Date	Record Date	Payment Date	Cash Dividend per Share
September 25, 2015	October 6, 2015	October 16, 2015	$	0.12
June 17, 2015	June 29, 2015	July 10, 2015	0.12
March 25, 2015	April 6, 2015	April 17, 2015	0.09
December 18, 2014	December 29, 2014	January 9, 2015	0.06
September 4, 2014	September 22, 2014	October 3, 2014	0.04
June 19, 2014	June 30, 2014	July 11, 2014	0.03
March 13, 2014	March 24, 2014	April 4, 2014	0.03

Preferred Stock Dividends

The following table presents cash dividends declared by the Company on its 10% cumulative redeemable preferred stock during the three months ended September 30, 2015, and the six immediately preceding quarters:

Declaration Date	Payment Date	Cash Dividend per Share
September 29, 2015	October 16, 2015	$	26.67
June 17, 2015	June 30, 2015	23.06
March 25, 2015	April 17, 2015	27.22
January 9, 2015	January 9, 2015	26.67
October 3, 2014	October 3, 2014	22.78
June 25, 2014	June 30, 2014	26.94
April 2, 2014	April 4, 2014	23.33

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Equity Incentive Plan

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity Incentive Plan

Equity Incentive Plan

Restricted Stock Awards

On February 12, 2015, the Company issued, in aggregate, 69,605 shares of restricted common stock to certain officers of the Company. The estimated fair value of these awards was $15.72 per share, based upon the closing price of the Company’s stock on the grant date. These grants will vest in one year commencing on the date of the grant, as long as such individual is an employee on the vesting date.

On February 13, 2015, the Company issued, in aggregate, 56,385 shares of restricted common stock to certain personnel of the Company. The estimated fair value of these awards was $15.67 per share, based upon the closing price of the Company’s stock on the grant date. These grants will vest annually in three equal installments commencing on the date of the grant, as long as such individual is an employee on the vesting date.

On May 20, 2015, the Company awarded each of its independent directors an equity retainer in the form of an award of restricted stock with a fair market value of $50 through the issuance of 16,110 total shares. This annual equity retainer for such independent directors will vest as to all of such shares on the earlier of (i) the one year anniversary of the date of grant and (ii) the date immediately preceding the date of the Company’s next annual meeting of stockholders, subject in each case, to the independent director’s continued service to the Company through the vesting date.

Performance Stock Units

On February 12, 2015, the Company granted 165,000 performance stock units to certain members of executive and senior management under its equity incentive plan. Each PSU represents the potential to receive Silver Bay common stock after the completion of three years of service from the date of grant. The number of shares of Silver Bay common stock to be earned as of the vesting date for each PSU increases and decreases based on Silver Bay's total stockholder return (stock price appreciation plus dividends) ("TSR"). The number of shares of common stock is determined by multiplying the target number of PSUs by the TSR multiplier, determined in accordance with the following table:

Annualized TSR	TSR Multiplier
6.5%	—%
8%	50%
10%	100%
12%	150%
16%	200%

To the extent the Company's annualized TSR falls between two discrete points, linear interpolation shall be used to determine the TSR multiplier. Additionally, each PSU contains one dividend equivalent right, which is equal to the cash dividend that would have been paid on the PSU had the PSU been an issued and outstanding common share on the record date for the dividend and is payable in additional shares if the market and service conditions are met.

The Company utilized a Monte-Carlo simulation to calculate the weighted-average grant date fair value of $7.00 per unit, using the following assumptions:

Expected volatility (1)	17.55		%
Dividend assumption (2)	—		%
Expected term in years	3.00
Risk-free rate	1.02		%
Stock price (per share) (3)	$	15.72
Beginning average stock price (per share) (4)	$	16.06

(1) Expected volatility is calculated as a 50.0% relative weighting of the Company's historical volatility of 15.54% (over the period from August 1, 2013 through the date of grant of the PSUs) and a 50.0% relative weighting on the implied volatility of 19.55%.

(2) An assumed dividend yield of 0% is the mathematical equivalent to the reinvestment of dividends, which is consistent with the TSR definition described above.

(3) Based on the closing price of the Company's common stock on February 12, 2015.

(4) Based on the 30 trading days ended on February 12, 2015.

During the three and nine months ended September 30, 2015, the Company recognized non-cash performance-based stock unit expense of $96 and $243, which is included within share-based compensation in the condensed consolidated statements of operations and comprehensive loss. Unrecognized compensation expense at September 30, 2015 was $912, which is expected to be recognized over the remaining three-year service period of the PSUs.

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Organization and Operations (Details)	Sep. 30, 2015 property	Sep. 30, 2014 employee
Organization and operations
Number of single-family properties owned	9,074
Number of employees | employee		0
Silver Bay Operating Partnership L.P.
Organization and operations
Direct and indirect partnership interests in Operating Partnership	94.20%
Portfolio Acquisition
Organization and operations
Number of single-family properties owned	2,456

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Equity Incentive Plan (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Performance Stock Award Targets

The number of shares of common stock is determined by multiplying the target number of PSUs by the TSR multiplier, determined in accordance with the following table:

Annualized TSR	TSR Multiplier
6.5%	—%
8%	50%
10%	100%
12%	150%
16%	200%

Schedule of Valuation Techniques

The Company utilized a Monte-Carlo simulation to calculate the weighted-average grant date fair value of $7.00 per unit, using the following assumptions:

Expected volatility (1)	17.55		%
Dividend assumption (2)	—		%
Expected term in years	3.00
Risk-free rate	1.02		%
Stock price (per share) (3)	$	15.72
Beginning average stock price (per share) (4)	$	16.06

(1) Expected volatility is calculated as a 50.0% relative weighting of the Company's historical volatility of 15.54% (over the period from August 1, 2013 through the date of grant of the PSUs) and a 50.0% relative weighting on the implied volatility of 19.55%.

(2) An assumed dividend yield of 0% is the mathematical equivalent to the reinvestment of dividends, which is consistent with the TSR definition described above.

(3) Based on the closing price of the Company's common stock on February 12, 2015.

(4) Based on the 30 trading days ended on February 12, 2015.

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Derivative and Other Fair Value Instruments

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Derivative and Other Fair Value Instruments

Derivative and Other Fair Value Instruments

Codification Topic Fair Value Measurement (“ASC 820”) established a three level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

Level 1 — Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 — Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Recurring Fair Value

The Company uses interest rate cap agreements to manage its exposure to interest rate risk (refer to Note 4). The interest rate cap agreements are valued using models developed by the respective counterparty that use as their basis readily observable market parameters (such as forward yield curves).

The following tables provide a summary of the aggregate fair value measurements for the interest rate cap agreements and the location within the condensed consolidated balance sheets at September 30, 2015 and December 31, 2014, respectively:

				Fair Value Measurements at Reporting Date Using
Description	Balance Sheet Location	September 30, 2015		Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1)		Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2)		Significant Unobservable Inputs (Level 3)
Interest Rate Caps (cash flow hedges)	Other Assets	$	803	$	—	$	803	$	—

				Fair Value Measurements at Reporting Date Using
Description	Balance Sheet Location	December 31, 2014		Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1)		Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2)		Significant Unobservable Inputs (Level 3)
Interest Rate Caps (cash flow hedges)	Other Assets	$	58	$	—	$	58	$	—
Interest Rate Caps (not designated as hedging instruments)	Other Assets	13		—		13		—
Total		$	71	$	—	$	71	$	—

The following table provides a summary of the effect of cash flow hedges on the Company's condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2015:

	Effective Portion							Ineffective Portion
Type of Cash Flow Hedge	Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative			Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Interest Rate Caps	$	(1,503	)	Interest Expense	$	(1	)	Ineffectiveness of Interest Rate Cap Agreements	$	—

The following table provides a summary of the effect of cash flow hedges on the Company's condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2014:

	Effective Portion							Ineffective Portion
Type of Cash Flow Hedge	Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative			Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
Interest Rate Caps	$	(208	)	Interest Expense	$	(1	)	Ineffectiveness of Interest Rate Cap Agreements	$	(480	)

As of September 30, 2015 and December 31, 2014, there were $1,589 and $86, respectively, in deferred losses in accumulated other comprehensive loss related to interest rate cap agreements. The Company expects to recognize $181 in interest expense during the twelve months ending September 30, 2016, which will be reclassified out of accumulated other comprehensive loss in accordance with the amortization schedules established upon designation of the interest rate caps as cash flow hedges. During the nine months ended September 30, 2015, the Company recorded $9 in losses as interest expense related to the change in fair value of interest rate caps not designated as cash flow hedges.

Nonrecurring Fair Value

For long-lived assets held for sale, an impairment loss is recognized when the estimated fair value of the asset, less the estimated cost to sell, is less than the carrying amount of the asset at the time the Company has determined to sell the asset. Assets held for sale are valued based on comparable sales data, less estimates of third-party broker commissions, which are based on market convention (see Note 2). These impairment measurements constitute nonrecurring fair value measures under ASC 820 and the inputs are characterized as Level 2.

Fair Value of Other Financial Instruments

In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the condensed consolidated balance sheets, for which fair value can be estimated.  The following describes the Company’s methods for estimating the fair value for financial instruments. Descriptions are not provided for those items that have zero balances as of September 30, 2015.

• Cash and cash equivalents, escrow deposits, resident prepaid rent and security deposits, resident rent receivable (included in other assets), accounts payable, and accrued property expenses have carrying values which approximate fair value because of the short-term nature of these instruments. The Company categorizes the fair value measurement of these assets and liabilities as Level 1.

• The Company’s revolving credit facility has a floating interest rate based on an index plus a spread and the credit spread is consistent with those demanded in the market for facilities with similar risk and maturities. As the revolving credit facility was amended and restated on February 18, 2015, the interest rate on this borrowing is at market as of September 30, 2015 and thus, the carrying value of the debt approximates fair value. The Company categorizes the fair value measurement of this liability as Level 2.

• The fair value of the Company's Securitization Loan was $296,821as of September 30, 2015, based on an average of market quotations. The Company categorizes the fair value measurement of this liability as Level 2.

• The Company’s 10% cumulative redeemable preferred stock had a fair value which approximates its liquidation value at September 30, 2015. The Company categorizes the fair value measurement of this instrument as Level 2.

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Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share ("EPS") for the three and nine months ended September 30, 2015 and 2014: 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss attributable to controlling interests	$	(1,343	)	$	(44,870	)	$	(8,623	)	$	(54,205	)
Preferred stock distributions	(25		)	(25		)	(75		)	(75		)
Net loss attributable to common stockholders	$	(1,368	)	$	(44,895	)	$	(8,698	)	$	(54,280	)
Basic and diluted weighted average common shares outstanding	36,071,146			38,315,231			36,257,449			38,440,421
Net loss per common share - basic and diluted	$	(0.04	)	$	(1.17	)	$	(0.24	)	$	(1.41	)

A total of 2,231,511 common units not owned by the Company were outstanding for the three and nine months ended September 30, 2015, but have been excluded from the calculation of diluted EPS as their inclusion would not be dilutive. In addition, 165,000 PSUs have been excluded from the calculation of diluted EPS for the three and nine months ended September 30, 2015, as the requisite performance conditions had not been met as of such date.

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Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Management Internalization Transaction

On September 30, 2014, the Company closed the Internalization after receiving the required stockholder approval for the transaction. The Internalization was completed under the terms of a contribution agreement (the "Contribution Agreement") among the Company, Pine River Domestic Management L.P., Provident, the Former Manager, and the Operating Partnership, pursuant to which the Company acquired the Former Manager in exchange for 2,231,511 common units of the Operating Partnership. These common units are redeemable for cash or, at the Company's election, the Company's common shares on a one-for-one basis.

The Contribution Agreement included a net worth adjustment, payable in cash, in the event that the closing net worth of the Former Manager was greater or less than $0 after making an adjustment to exclude any liabilities for accrued bonus compensation payable to the Chief Executive Officer and personnel providing data analytics directly supporting the investment function of the Company. The Company settled the net worth adjustment on September 30, 2014 based on estimated amounts. The Company finalized the net worth adjustment in the fourth quarter of 2014 and the settlement was de minimus. As a result of this transaction, as of September 30, 2014, the Company no longer pays fees or expense reimbursements to the Former Manager or the Former Manager's operating subsidiary.

The Company recognized $39,179 in the third quarter of 2014 in connection with the Internalization, which is recorded as management internalization expense in the accompanying condensed consolidated statements of operations and comprehensive loss. The Internalization expense primarily consists of the issuance of the 2,231,511 common units of the Operating Partnership with a fair value of $36,173, based on the stock price on the date of closing of $16.21. The issuance of the common units was recognized as a one-time expense as it represented the cost of terminating the advisory management fee agreement. The remaining amounts in management internalization were attributable to transaction fees and expenses, and the assumption of certain liabilities in connection with the transaction. The Company acquired cash of $2,067 and other net liabilities of $2,067 in the transaction.

Upon Internalization, the Company assumed net operating losses and a deferred tax asset of the Former Manager's operating subsidiary of $1,508, which expire through 2032. The Company recorded a deferred tax asset of $623, which was fully offset by a valuation allowance due to the uncertainty in forecasting future taxable income of this entity. The Company elected to have this new entity be treated for tax purposes as a taxable REIT subsidiary.

Advisory Management Agreement

On September 30, 2014, the Company closed the Internalization after receiving the required stockholder approval for the transaction. Prior to the Internalization, the Company and the Former Manager maintained an advisory management agreement whereby the Former Manager designed and implemented the Company’s business strategy and administered its business activities and day-to-day operations, subject to oversight by the Company’s board of directors. In exchange for these services, the Former Manager earned a fee equal to 1.5% per annum, or 0.375% per quarter, of the Company’s daily average fully diluted market capitalization, as defined by the management agreement, calculated and payable quarterly in arrears. The fee was reduced for the 5% property management fee (described below) received by the Former Manager’s operating subsidiary or its affiliates under the property management and acquisition services agreement. The Company also reimbursed the Former Manager for all expenses incurred on its behalf or otherwise in connection with the operation of its business, other than compensation for the Chief Executive Officer and personnel providing data analytics directly supporting the investment function.

During the three and nine months ended September 30, 2014, the Company expensed $2,251 and $6,621 in advisory management fees, net of the reduction for the 5% property management fee described below.

The Company also reimbursed the Former Manager for certain general and administrative expenses, primarily related to employee compensation and certain office costs. Direct and allocated costs incurred by the Former Manager on behalf of the Company totaled $1,777 and $5,476 for the three and nine months ended September 30, 2014.

Property Management and Acquisition Services Agreement

Prior to the Internalization, the Company and the Former Manager’s operating subsidiary maintained a property management and acquisition services agreement pursuant to which the Former Manager’s operating subsidiary acquired and managed single-family properties on the Company’s behalf. For these services, the Company reimbursed the Former Manager’s operating subsidiary for all direct expenses incurred in the operation of its business, including the compensation of its employees. The Former Manager’s operating subsidiary also received a property management fee equal to 5% of certain costs and expenses incurred by it in the operation of its business that were reimbursed by the Company. Prior to the Internalization, this 5% property management fee reduced the advisory management fee paid to the Former Manager on a dollar-for-dollar basis. Upon Internalization, the Former Manager's operating subsidiary performing these services was acquired.

During the three and nine months ended September 30, 2014, the Company incurred property management expense of $2,336 and $7,569, respectively. These amounts included direct expense reimbursements of $1,717 and $5,120, respectively, and the 5% property management fee of $97 and $288, respectively. The remaining amounts in property management fees of $522 and $2,161, respectively, were incurred to reimburse the Former Manager's operating subsidiary for expenses payable to third-party property managers and direct property management type expenses. In addition, the Company incurred charges with the Former Manager's operating subsidiary of $220 and $608, respectively, in acquisitions and renovation fees, which the Company capitalized as part of property acquisition and renovation costs of $0 and $11, respectively, for leasing services, which are reflected as other assets and amortized over the life of the leases.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Concentrations

As of September 30, 2015, approximately 58% of the Company’s properties were located in Atlanta, GA, Phoenix, AZ, and Tampa, FL, which exposes the Company to greater economic risks than if the Company owned a more geographically dispersed portfolio.

Resident Security Deposits

As of September 30, 2015, the Company had $12,331 in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease.

Earnest Deposits

Escrow deposits include non-refundable cash or earnest deposits for the purchase of properties. As of September 30, 2015, the Company had earnest deposits for property purchases of $31. As of September 30, 2015, for properties acquired through individual broker transactions and the remaining Portfolio Acquisition properties, which involve submitting a purchase offer, the Company had offers accepted to purchase residential properties for an aggregate amount of $1,075. Not all of the properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons and the escrow deposits may be lost.

Legal and Regulatory

From time to time, the Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company's business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material adverse effect on the Company's condensed consolidated financial statements.

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Equity Incentive Plan - Fair Value Assumptions (Details)			18 Months Ended
	Feb. 18, 2015	Feb. 12, 2015 trading_days $ / shares	Feb. 12, 2015 $ / shares	Sep. 30, 2014 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price (per share) (in dollars per share)				$ 16.21
Relative weighting		50.00%
Performance Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)		17.55%	15.54%
Implied volatility (percent)	19.55%
Dividend assumption (percent)		0.00%
Expected term in years		3 years
Risk-free rate (percent)		1.02%
Stock Price (per share) (in dollars per share)		$ 15.72	$ 15.72
Beginning average stock price (in dollars per share)		$ 16.06
Relative weighting		50.00%
Trading days | trading_days		30

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Earnings (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Summary of elements used in calculating basic and diluted EPS computations

The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share ("EPS") for the three and nine months ended September 30, 2015 and 2014: 

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net loss attributable to controlling interests	$	(1,343	)	$	(44,870	)	$	(8,623	)	$	(54,205	)
Preferred stock distributions	(25		)	(25		)	(75		)	(75		)
Net loss attributable to common stockholders	$	(1,368	)	$	(44,895	)	$	(8,698	)	$	(54,280	)
Basic and diluted weighted average common shares outstanding	36,071,146			38,315,231			36,257,449			38,440,421
Net loss per common share - basic and diluted	$	(0.04	)	$	(1.17	)	$	(0.24	)	$	(1.41	)

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Investments in Real Estate - Fair Value of Assets and Liabilities Acquired (Details) - Portfolio Acquisition $ in Thousands	Sep. 30, 2015 USD ($)
Business Acquisition [Line Items]
Land	$ 55,684
Buildings and improvements	207,316
Estimated fair value of assets and liabilities acquired	$ 263,000

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Commitments and Contingencies (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Concentrations
Resident security deposits	$ 12,331
Earnest deposits
Amount of property purchases for which earnest deposits have been made	31
Aggregate amount of offers accepted to purchase residential properties	$ 1,075
Real Estate Properties | Geographically Dispersed Portfolio | Phoenix, AZ, Tampa, FL, and Atlanta, GA
Concentrations
Concentration (as a percent)	58.00%

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Condensed Consolidated Statement of Changes in Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Cumulative Deficit	Total Stockholders' Equity	Noncontrolling Interests - Operating Partnership
Balance at Dec. 31, 2014	$ 600,895	$ 366	$ 660,776	$ (86)	$ (94,593)	$ 566,463	$ 34,432
Balance (in shares) at Dec. 31, 2014	36,711,694	36,711,694
Increase (Decrease) in Stockholders' Equity
Non-cash equity awards, net	$ 1,826		1,826			1,826
Non-cash equity awards, net (in shares)		134,031
Repurchase and retirement of common stock	(12,326)	$ (8)	(12,318)			(12,326)
Repurchase and retirement of common stock (in shares)		(774,666)
Dividends declared	(12,672)				(12,672)	(12,672)
Net loss	(9,154)				(8,623)	(8,623)	(531)
Other comprehensive loss	(1,503)			(1,503)		(1,503)
Adjustment to noncontrolling interests - Operating Partnership	0		864			864	(864)
Balance at Sep. 30, 2015	$ 567,066	$ 358	$ 651,148	$ (1,589)	$ (115,888)	$ 534,029	$ 33,037
Balance (in shares) at Sep. 30, 2015	36,071,059	36,071,059

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Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt

Debt

Securitization Loan

On August 12, 2014, the Company completed a securitization transaction (the "Securitization Transaction") in which it received gross proceeds of $311,164, net of an original issue discount of $1,503 and before issuance costs and reserves. The Securitization Transaction involved the issuance and sale of six classes of single-family rental pass-through certificates (the "Certificates") that represent beneficial ownership interests in a loan secured by 3,084 single-family properties (the "Securitization Properties") sold to one of the Company's affiliates from its portfolio. In the Securitization Transaction, the Company sold $312,667 of pass-through certificates, with a blended effective interest rate of the London Interbank Offered Rate ("LIBOR") plus 1.92%, inclusive of the amortization of the original issue discount, plus monthly servicing fees of 0.1355% per tranche. The original issue discount will be accreted and recognized to interest expense through the fully extended maturity date of September 9, 2019.

As part of the Securitization Transaction, a newly-formed special purpose entity (the "Borrower") entered into a loan agreement (the "Securitization Loan"). The Borrower is wholly owned by another special purpose entity (the "Equity Owner"). The Securitization Loan was subsequently deposited into a trust in exchange for the pass-through certificates. The Securitization Loan has an initial term of two years, with three, 12-month extension options, resulting in a fully extended maturity date of September 9, 2019. The Company used the proceeds of the Securitization Loan to pay down the balance of Company's revolving credit facility at closing and the remaining proceeds were used for working capital and other corporate purposes, including the acquisition, financing and renovation of properties and the repurchase of common stock. During the nine months ended September 30, 2015, the Company paid down $6,866 on the Securitization Loan to effect the release of certain properties from the first priority mortgages securing the Securitization Loan, including those properties in the Houston portfolio as described in Note 3.

The Securitization Loan requires monthly payments of interest and is comprised of six floating rate components computed based on one month LIBOR for each interest period plus a fixed component spread for each of the six components, resulting in a blended effective interest rate of LIBOR plus 1.94% at September 30, 2015, as a result of the pay down as noted above, inclusive of the amortization of the original issue discount (described below), plus monthly servicing fees of 0.1355%. The principal amount of each component of the loan corresponds to the respective class of Certificates. In connection with entering into the loan, the Company recorded $311,164 as securitization loan in the accompanying condensed consolidated balance sheets. The original issue discount (the difference between the $312,667 balance of certificates sold and the gross proceeds of $311,164) is accreted and recognized to interest expense through the fully extended maturity date of September 9, 2019. In the three and nine months ended September 30, 2015, the Company incurred gross interest expense of $1,706 and $5,081, respectively, excluding amortization of the discount and deferred financing costs and before the effect of capitalizing interest related to property renovations. In the three and nine months ended September 30, 2014, the Company incurred gross interest expense of $914 for both the three and nine months ended September 30, 2014, excluding amortization of the discount and deferred financing costs and before the effect of capitalizing interest related to property renovations. As of September 30, 2015 and December 31, 2014, the loan had a weighted-average interest rate of 2.18% and 2.11%, respectively, which is inclusive of the monthly servicing fees, but excludes amortization of the original issue discount and deferred financing costs.

All amounts outstanding under the Securitization Loan are secured by first priority mortgages on the Securitization Properties in addition to the equity interests in, and certain assets of, the Borrower. The amounts outstanding under the Securitization Loan and certain obligations contained therein are guaranteed by the Operating Partnership only in the case of certain bad acts (including bankruptcy) as outlined in the transaction documents. The Borrower and Equity Owner are separate legal entities, but continue to be reported in the Company’s consolidated financial statements. As long as the Securitization Loan is outstanding, the assets of the Borrower and Equity Owner are not available to satisfy the debts and obligations of the Company or its other consolidated subsidiaries, and the liabilities of the Borrower and Equity Owner are not liabilities of the Company (excluding, for this purpose, the Borrower and Equity Owner) or its other consolidated subsidiaries. The Company is permitted to receive distributions from the Borrower out of unrestricted cash as long as the Borrower is current with all payments and in compliance with all other obligations under the Securitization Loan.

The Securitization Loan provides for the restriction of cash whereby the Company must set aside funds for payment of property taxes, capital expenditures and other reserves associated with the Securitization Properties. As of September 30, 2015 and December 31, 2014, the Company had $4,055 and $4,635, respectively, included in escrow deposits associated with the required reserves. The Securitization Loan does not contractually restrict the Company's ability to pay dividends but certain covenants contained therein may limit the amount of cash available for distribution. The Securitization Loan documents require the Company to maintain certain covenants, including a minimum debt yield on the Securitization Properties, and contain customary events of default for a loan of this type, including payment defaults, covenant defaults, breaches of representations and warranties, bankruptcy and insolvency, judgments and cross-default with certain other indebtedness. In the event of default, the lender may apply funds, as the lender elects, from a cash management account controlled by the lender for the collection of all rents and cash generated by the Borrower's properties, foreclose on its security interests, appoint a new property manager, and in limited circumstances, enforce the Company's guaranty. In addition, as of September 30, 2015 and December 31, 2014, the cash management account had a balance of $2,786 and $3,542, respectively, classified as escrow deposits on the condensed consolidated balance sheets. As of September 30, 2015 and December 31, 2014, the Company was in compliance with all financial covenants.

Revolving Credit Facility

Certain of the Company's subsidiaries have a revolving credit facility (the "revolving credit facility") with a syndicate of banks. On February 18, 2015, the Company amended and restated the revolving credit facility to increase the borrowing capacity to $400,000 from $200,000 and subsequently amended the revolving credit facility to address certain interest calculation mechanics. As amended, the revolving credit facility bears interest at a varying rate of LIBOR plus 300 basis points with a LIBOR floor of 0.0%. Prior to the amendment, the revolving credit facility bore interest at varying rates of LIBOR plus 3.5% subject to a LIBOR floor of 0.5%. The Company is also required to pay a monthly fee on the unused portion of the revolving credit facility at a rate of 0.5% per annum, when the balance outstanding is less than $200,000, or 0.3% per annum when the balance outstanding is equal to or greater than $200,000.  As part of the amendment, the term of the revolving credit facility was extended to February 18, 2018 and the advance rate for borrowings was increased to 65% from 55%. The advance rate is based on the aggregate value of the eligible properties which value is calculated as the lesser of (a) the third-party broker price opinion value or (b) the original purchase price plus certain renovation and other capitalized costs of the properties. The Company used proceeds from the revolving credit facility to fund the Portfolio Acquisition. The remaining proceeds were used for working capital and other corporate purposes, including the acquisition, financing and renovation of properties.

As of September 30, 2015 and December 31, 2014, $344,254 and $67,096, respectively, was outstanding under the revolving credit facility. During the nine months ended September 30, 2015, the Company paid down $4,805 on the revolving credit facility to effect the release of certain properties, including those properties in the Houston portfolio as described in Note 3.

The interest rate on the revolving credit facility as of September 30, 2015 and 2014 was 3.4% and 4.0%, respectively. In the three and nine months ended September 30, 2015, the Company incurred $2,989 and $6,898, respectively, in gross interest expense on the revolving credit facility, excluding amortization of deferred financing costs, before the effect of capitalizing interest related to property renovations and interest expense related to the interest rate cap agreements. In the three and nine months ended September 30, 2014, the Company incurred $1,302 and $5,549, respectively, in gross interest expense on the revolving credit facility, excluding amortization of deferred financing costs, before the effect of capitalizing interest related to property renovations and interest expense related to the interest rate cap agreements.

All amounts outstanding under the revolving credit facility are collateralized by the equity interests and assets of certain of the Company’s subsidiaries ("Pledged Subsidiaries"), which exclude the Securitization Properties. The amounts outstanding under the revolving credit facility and certain obligations contained therein are guaranteed by the Company and the Operating Partnership only in the case of certain bad acts (including bankruptcy) and up to $20,000 for completion of certain property renovations, as outlined in the credit documents.

The Pledged Subsidiaries are separate legal entities, but continue to be reported in the Company’s consolidated financial statements. As long as the revolving credit facility is outstanding, the assets of the Pledged Subsidiaries are not available to satisfy the other debts and obligations of the Pledged Subsidiaries or the Company. However, the Company is permitted to receive distributions from the Pledged Subsidiaries as long as the Company and the Pledged Subsidiaries are current with all payments and in compliance with all other obligations under the revolving credit facility.

The revolving credit facility does not contractually restrict the Company’s ability to pay dividends but certain covenants contained therein may limit the amount of cash available for distribution. For example, in the final year of the revolving credit facility, all cash generated by the properties in the Pledged Subsidiaries must be used to pay down the principal amount outstanding under the revolving credit facility. The revolving credit facility requires the Company to meet certain quarterly financial tests pertaining to net worth, total liquidity, debt yield and debt service coverage ratios, as defined by the revolving credit facility agreement. The Company must maintain at all times total liquidity of $25,000 and a net worth of at least $125,000, in each case as determined in accordance with the revolving credit facility agreement. As of September 30, 2015, and December 31, 2014, the Company was in compliance with all financial covenants. The revolving credit facility also provides for the restriction of cash whereby the Company must set aside funds for payment of insurance, property taxes and certain property operating and maintenance expenses associated with properties in the Pledged Subsidiaries' portfolios. As of September 30, 2015 and December 31, 2014, the Company had $15,950 and $6,457, respectively, included in escrow deposits associated with the required reserves. The revolving credit facility also contains customary events of default for a facility of this type, including payment defaults, covenant defaults, breaches of representations and warranties, bankruptcy and insolvency, judgments, change of control and cross-default with certain other indebtedness.

Deferred Financing Costs

Costs incurred in the placement of the Company’s debt are being amortized using the straight-line method, which approximates the effective interest method, over the terms of the related debt. Amortization of deferred financing costs is recorded as interest expense in the accompanying condensed consolidated statements of operations and comprehensive loss.  

In connection with its Securitization Loan, the Company incurred deferred financing costs of $0 and $460 for the three and nine months ended September 30, 2015. The costs are being amortized through September 9, 2019, the fully extended maturity date of the Securitization Loan. Amortization of the deferred financing costs was $585 and $1,752 for the three and nine months ended September 30, 2015 and $302 for both the three and nine months ended September 30, 2014. In conjunction with the pay down of the Securitization Loan related to the sale of the Houston portfolio, the Company wrote off $174 in deferred financing costs for both the three and nine months ended September 30, 2015, which has been included in net gain on disposition of real estate in the condensed consolidated statements of operations and comprehensive loss.

In connection with its revolving credit facility, the Company incurred deferred financing costs of $21 and $5,323 for the three and nine months ended September 30, 2015 and $28 and $1,726 for the three and nine months ended September 30, 2014, respectively. Amortization of the deferred financing costs was $582 and $1,558 for the three and nine months ended September 30, 2015 and $345 and $1,313 for three and nine months ended September 30, 2014, respectively.

Interest Rate Cap Agreements

The variable rate of interest on the Company's debt exposes the Company to interest rate risk. The Company seeks to manage this risk through the use of interest rate cap agreements.

As of December 31, 2014, the Company held four interest rate cap agreements, including three interest rate cap agreements with an aggregate notional amount of $245,000, LIBOR caps of 3.00%, and termination dates of May 10, 2016 associated with the revolving credit facility, and one interest rate cap with a notional amount of $312,667, a LIBOR cap of 3.1085%, and a termination date of September 15, 2016 associated with the Securitization Loan.

On January 28, 2015, the Company entered into a forward-starting interest rate cap agreement associated with the Securitization Loan at a purchase price of $1,383. The interest rate cap has an effective date of September 15, 2016, a termination date of September 15, 2019, a notional amount of $200,000, and a LIBOR cap rate of 3.1085%.

In conjunction with the amendment to the revolving credit facility executed on February 18, 2015, the Company sold the existing interest rate cap agreements associated with such facility for an aggregate sales price of $4 and entered into a new interest rate cap agreement with a notional amount of $83,000, a LIBOR cap of 3.0%, and a termination date of February 17, 2018, at a purchase price of $272.

On March 31, 2015, the Company entered into an interest rate cap associated with the revolving credit facility at a purchase price of $595. The interest rate cap has an effective date of March 31, 2015, a termination date of February 18, 2018, a notional amount of $266,100, and a LIBOR cap rate of 3.0%.

The Company determined that the interest rate caps purchased in the nine months ended September 30, 2015 qualify for hedge accounting and, therefore, designated the derivatives as cash flow hedges with future changes in fair value recognized through other comprehensive loss (see Note 9). Ineffectiveness is calculated as the amount by which the change in fair value of the derivatives exceeds the change in the fair value of the anticipated cash flows related to the corresponding debt.

Capitalized Interest

The Company capitalizes interest for properties undergoing renovation activities and purchased subsequent to the Company obtaining debt in May 2013. Capitalized interest totaled $0 and $311 for the three and nine months ended September 30, 2015, respectively, and $251 and $497 for the three and nine months ended September 30, 2014, respectively.

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Investments in Real Estate - Pro Forma Information (Details) - Portfolio Acquisition - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Revenue	$ 30,617	$ 26,113	$ 89,668	$ 74,854
Net loss	(1,361)	(47,437)	(9,296)	(65,126)
Net loss attributable to common shareholders	$ (1,302)	$ (47,462)	$ (8,840)	$ (65,201)
Loss per share - basic and diluted (in dollars per share)	$ (0.04)	$ (1.24)	$ (0.24)	$ (1.70)
Common shares outstanding	36,071,146	38,315,231	36,257,449	38,440,421

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Related Party Transactions (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($) $ / shares shares	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($) $ / shares shares
Related Party Transactions
Stock Price (per share) (in dollars per share) | $ / shares		$ 16.21		$ 16.21
Cash acquired			$ 0	$ 2,067,000
Other net liabilities acquired			0	2,067,000
Advisory Management Agreement
Advisory management fee expense	$ 0	$ 2,251,000	0	6,621,000
Property Management And Acquisition Services Agreement
Property management expense	$ 3,167,000	2,336,000	$ 8,262,000	7,569,000
Manager
Advisory Management Agreement
Direct and allocated costs expensed		1,777,000		5,476,000
Contribution Agreement | Manager
Related Party Transactions
Cash acquired		2,067,000
Other net liabilities acquired		2,067,000
Contribution Agreement | Manager's operating subsidiary
Related Party Transactions
Net operating losses acquired		1,508,000		1,508,000
Deferred tax asset recorded		623,000		623,000
Advisory Management Agreement
Advisory Management Agreement
Advisory management fee expense		2,251,000		$ 6,621,000
Advisory Management Agreement | Manager
Advisory Management Agreement
Annual advisory management fee as a percentage of entity's daily average fully diluted market capitalization				1.50%
Quarterly advisory management fee as a percentage of entity's daily average fully diluted market capitalization				0.375%
Property management fee percentage, deducted from advisory fee				5.00%
Property Management and Acquisition Services Agreement | Manager's operating subsidiary
Property Management And Acquisition Services Agreement
Direct expense reimbursements		1,717,000		$ 5,120,000
Property management fee		97,000		288,000
Portion of property management fee related to reimbursement of or direct payment due to third-party managers		522,000		2,161,000
Acquisitions and renovation fees		220,000		608,000
Fee for leasing services		$ 0		$ 11,000
Silver Bay Operating Partnership L.P.
Related Party Transactions
Number of common units issued to acquire Manager (shares) | shares		2,231,511		2,231,511
Silver Bay Operating Partnership L.P. | Contribution Agreement
Related Party Transactions
Conversion ratio of limited partners capital account units		1		1
Fair value of common units issued		$ 36,173,000		$ 36,173,000
Silver Bay Operating Partnership L.P. | Contribution Agreement | Manager
Related Party Transactions
Number of common units issued to acquire Manager (shares) | shares		2,231,511		2,231,511
Closing net worth amount in which cash payment is required		$ 0		$ 0
One-time expense recognized on issuance of common units		$ 39,179,000

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2015

Common Stock Dividends

Stockholders' equity

Schedule of cash dividends declared by the Company since its formation

The following table presents cash dividends declared by the Company on its common stock during the three months ended September 30, 2015, and the six immediately preceding quarters:

Declaration Date	Record Date	Payment Date	Cash Dividend per Share
September 25, 2015	October 6, 2015	October 16, 2015	$	0.12
June 17, 2015	June 29, 2015	July 10, 2015	0.12
March 25, 2015	April 6, 2015	April 17, 2015	0.09
December 18, 2014	December 29, 2014	January 9, 2015	0.06
September 4, 2014	September 22, 2014	October 3, 2014	0.04
June 19, 2014	June 30, 2014	July 11, 2014	0.03
March 13, 2014	March 24, 2014	April 4, 2014	0.03

Preferred Stock Dividends

Stockholders' equity

Schedule of cash dividends declared by the Company since its formation

The following table presents cash dividends declared by the Company on its 10% cumulative redeemable preferred stock during the three months ended September 30, 2015, and the six immediately preceding quarters:

Declaration Date	Payment Date	Cash Dividend per Share
September 29, 2015	October 16, 2015	$	26.67
June 17, 2015	June 30, 2015	23.06
March 25, 2015	April 17, 2015	27.22
January 9, 2015	January 9, 2015	26.67
October 3, 2014	October 3, 2014	22.78
June 25, 2014	June 30, 2014	26.94
April 2, 2014	April 4, 2014	23.33