Reven Housing REIT, Inc. Reports Results for Third Quarter 2018
November 13 2018 - 6:43PM
Business Wire
Reven Housing REIT, Inc. (the “Company”, “Reven Housing”,
“RVEN”) (NASDAQ: RVEN), an owner and operator of single-family
residential property, today reported financial results for the
third quarter ended September 30, 2018.
Third Quarter Highlights
- Reported net loss of 1.2 million or
($0.11) per share as compared to a net loss of $1.3 million, or
($0.12) per share, in the prior year period.
- Core FFO decreased to $165,417 from
$248,451 in the year-ago period but was unchanged at $0.02 per
share year over year.
- Increased rental income by 8.2% to $2.2
million from $2.04 million due to the increase of single family
homes in the Company’s portfolio over the last twelve months.
- Achieved portfolio occupancy of 92.9%
versus 93.9% in the year ago period.
- Entered into a $51.3 million loan with
Arbor Agency Lending, LLC, on behalf of Federal Home Loan Mortgage
Corporation (Freddie Mac).
- Independent valuation of Company’s
portfolio concluded that the estimated net asset value for Reven is
approximately $6.00 per share, as of September 30, 2018.
Year-to-Date Highlights
- Reported net loss of $2.4 million or
($0.23), compared to a net loss of approximately $2.0 million, or
($0.18) per share, in the prior year period.
- Increased Core FFO to $633,373, or
$0.06 per share, from $424,189, or $0.04 per share,
- Rental income increased 13.9%
year-over-year to $6.62 million primarily due to the acquisition of
75 single family homes over the last twelve months.
- Acquired 27 single family homes in
Birmingham Alabama for approximately $1.68 million
Chad Carpenter, Chief Executive Officer of Reven Housing REIT,
stated, “The third quarter was marked by continued execution of our
business plan and the completion of a $51 million financing with
Freddie Mac. This financing provided Reven with proceeds to repay
existing debt as well as additional capital to pursue accretive
acquisitions. Third party valuations required for the financing and
completed on behalf of Freddie Mac highlighted the value embedded
in Reven estimating the company’s net asset value at approximately
$6.00 per share.” Mr. Carpenter continued, “We are starting to
deploy some of the refinancing proceeds with new acquisitions in
Oklahoma City, a new market for us, Memphis and Birmingham.
Third Quarter Financial
Results
- For the third quarter ended September
30, 2018, Reven Housing reported rental income growth of 8.2% to
$2.2 million compared to the prior year period. The main driver for
the year-over-year increase in rental revenue was due to the
increase in the number of homes in the Company’s portfolio to 826,
from 755 homes in the prior year period. As of September 30, 2018,
the Company’s portfolio was 92.9% occupied which represents a 100
bps decline from the quarter ended September 30, 2017. During the
quarter, the Company improved its lease turnover to 7.6% of the
quarter end portfolio from 8.6% of the quarter end portfolio in the
year ago period on a larger home count.
- Net operating income (NOI) from rentals
was $1.06 million, or 47.9% of revenue, versus NOI from rentals of
$1.1 million, or 54.0% of revenue, in 2017. The main driver for the
decrease in NOI margin despite an increase in revenue was higher
repair and insurance costs.
- Net loss for the third quarter 2018 was
reduced to $1.16 million, or ($0.11) per share, compared to a net
loss of $1.31 million, or ($0.12) per share, in the prior year
period. In the quarter, the Company incurred a $0.06 charge related
to early extinguishment of debt from the Freddie Mac
Financing.
Year-to-Date Financial
Results
- For the nine months ended September 30,
2018, total rental income increased 13.9% to $6.62 million, due to
the increase in rental homes.
- Net Operating Income or “NOI” for the
first nine months of 2018 was $3.44 million, or 51.9% of rental
revenue, compared to NOI of $3.13 million, or 53.8% of rental
revenue, in the prior year period. The main driver for the decrease
in NOI margin despite an increase in revenue was higher repairs and
insurance costs.
- Net loss for the nine months ended
September 30, 2018 was $2.43 million, or ($0.23) per share,
compared to a net loss of $1.96 million, or ($0.18) per share, for
the nine months ended September 30, 2017.
Operations, Acquisitions and
Dispositions and Balance Sheet
At the end of the third quarter 2018, Reven Housing REIT owned
826 homes in major metropolitan areas across the southwest and
southeast regions of the United States. At quarter-end, the
portfolio was 92.9% occupied and had an average monthly rent of
$996.00. per month, up 1.1% from the year-ago period.
The Company did not make any acquisitions during the
quarter.
As of the end of the third quarter, the Company had $24.0
million in cash, cash equivalents and restricted cash on the
balance sheet and $50.1 million in notes payable, net. During the
quarter, the Company entered into an interest only, seven-year loan
at a fixed rate of 4.74% for $51.3 million with Arbor Agency
Lending, LLC, an approved Seller/Servicer for Federal Home Loan
Mortgage Corporation (Freddie Mac). The proceeds were used to pay
down approximately $33 million of the Company’s eight outstanding
amortizing mortgage notes.
Subsequent Events
On October 11, 2018, the Company’s Board of Directors decided to
initiate a quarterly dividend of the Company’s common stock of
$0.01 per share, which represents an annual dividend yield of
approximately 1%.
About Reven Housing REIT, Inc.
Reven Housing REIT, Inc., (NASDAQ: RVEN) engages in the
acquisition and ownership of portfolios of occupied single family
rental properties in the United States. Reven currently owns and
operates single family rental properties in Alabama, Florida,
Georgia, Mississippi, Tennessee and Texas.
For more information, please visit
http://www.revenhousingreit.com/.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. The ultimate occurrence of
events and results referenced in these forward-looking statements
is subject to known and unknown risks and uncertainties, many of
which are beyond our control. These forward-looking statements are
based upon the Company's present intentions and expectations, but
the events and results referenced in these statements are not
guaranteed to occur. Investors should not place undue reliance upon
forward-looking statements. For a discussion of these and other
risks facing our business, see the information under the heading
“Risk Factors” in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission (“SEC”) on March 29, 2018 and
our other filings with the SEC from time to time, which are
accessible on the SEC’s website at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20181113006264/en/
Investor Relations:ICR, Inc.Evelyn Infurna,
203-682-8265evelyn.infurna@icrinc.com
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