Attached files
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8-K - 8-K - Starwood Waypoint Homes | sfr-8k_20160808.htm |
Exhibit 99.1
Table of Contents
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Section I: Section II: Section III: Section IV: Section V: Section VI: Appendix: |
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Earnings Release Q2 Highlights Consolidated Financials Selected Additional Information Same Store Information Earnings Guidance Definitions and Reconciliations |
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2 9 11 18 23 36 38
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1 |
I. Earnings Release
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2 |
Earnings Release
COLONY STARWOOD HOMES ANNOUNCES
SECOND QUARTER 2016 FINANCIAL AND OPERATING RESULTS
Scottsdale, Arizona (August 8, 2016) – Colony Starwood Homes (NYSE: SFR) (the “Company”), a leading single-family rental real estate investment trust (“REIT”), today announced operating and financial results for the three and six months ended June 30, 2016. Capitalized terms used herein have the meanings ascribed thereto in the Appendix.
Second Quarter 2016 Highlights
• |
Total revenues increased to $143.8 million in Q2 2016, supported by an acceleration of Quarterly Same Store Blended Rent Growth of 5.5% compared to 3.9% in Q1 2016; Quarterly Same Store revenue growth was 6.3% |
• |
Total Homes Occupancy exceeds 95% for second straight quarter, measuring 95.4% as of June 30, 2016; Quarterly Same Store Occupancy for Q2 was 95.8% |
• |
Net loss of $15.7 million or ($0.15) per share, with Core FFO of $0.39 per share for the three months ended June 30, 2016 |
• |
Quarterly Same Store NOI increased 7.8% compared to Q2 2015; Quarterly Same Store Core NOI margin was 62.8% |
• |
Completed $485.6 million securitization and subsequently entered into a $450 million interest rate swap contract, effectively locking in an average interest rate of 3.3% over the five-year term and increasing the percentage of fixed rate debt to total debt to over 60% |
• |
Company tightened full year 2016 Core FFO guidance to $1.60 - $1.65 per share |
“Continued strong demand and virtually no new supply of single-family rental homes led to accelerating rent growth and stable occupancy through the second quarter,” stated Fred Tuomi, the Company’s CEO. “Quarterly Same Store Blended Rent growth was 5.5% compared to 3.9% in the first quarter. Through the first six months our Full Year Same Store portfolio of 22,647 homes produced year over year revenue growth of 6.3%, NOI growth of 10.9% and Core NOI margin of 64.1%, while maintaining occupancy of 95.7%. The momentum behind these results, coupled with our high quality market selection, unique market density and innovative technology platform provides a favorable catalyst for future operating improvements and significant portfolio growth.”
The 2016 financial results of the Company (other than Quarterly Same Store or Full Year Same Store results) include the historical financial results of Starwood Waypoint Residential Trust (“SWAY”) beginning on January 5, 2016, which was the date of the merger between Colony American Homes (“CAH”) and SWAY (the “Merger”). Historical financial results (other than Same Store results) as of dates or for periods prior to January 5, 2016 represent only the pre-Merger financial results of CAH and do not reflect what the financial results would have been had the Merger been complete during such periods.
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3 |
Earnings Release (Continued)
Second Quarter 2016 Operating Results
Total revenues were $143.8 million for the three months ended June 30, 2016, and net loss attributable to common shareholders was approximately $15.7 million, or ($0.15) per share, driven by depreciation and amortization.
NAREIT FFO was $25.0 million for the three months ended June 30, 2016, or $0.23 per share, and Core FFO was $41.9 million, or $0.39 per share. NAREIT FFO and Core FFO are common supplemental measures of operating performance for a REIT, and the Company believes both are useful to investors as a complement to GAAP measures because they facilitate an understanding of the operating performance of the Company’s properties.
Same Store Results
For the Company’s Quarterly Same Store portfolio of 24,657 homes, revenue for the three months ended June 30, 2016 was $111.3 million, a 6.3% increase from those homes’ revenues for the three months ended June 30, 2015. For the Company’s Full Year Same Store portfolio of 22,647 homes, revenue for the six months ended June 30, 2016 was $201.1 million, a 6.3% increase for those homes’ revenues from the six months ended June 30, 2015. For the Quarterly Same Store portfolio, property operating expenses increased by 4.0% from the three months ended June 30, 2015, producing a 7.8% increase in Quarterly Same Store Core NOI for the three months ended June 30, 2016 as compared to the three months ended June 30, 2015. For the Full Year Same Store portfolio, property operating expenses decreased by 0.4% from the six months ended June 30, 2015, producing a 10.9% increase in Full Year Same Store Core NOI for the six months ended June 30, 2016 as compared to the six months ended June 30, 2015. Quarterly Same Store Core NOI margin was 62.8%. The table below summarizes Quarterly and Full Year Same Store operating results.
Same Store Property Results |
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Quarterly Same Store |
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Full Year Same Store |
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Homes as of June 30, 2016 |
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24,657 |
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22,647 |
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Occupancy as of June 30, 2016 |
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95.8% |
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95.7% |
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Revenue Growth (June 30, 2016 as compared to June 30, 2015) |
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6.3% |
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6.3% |
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Operating Expense Growth (June 30, 2016 as compared to June 30, 2015) |
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4.0% |
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-0.4% |
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NOI Growth (June 30, 2016 as compared to June 30, 2015) |
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7.8% |
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10.9% |
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Core NOI Margin |
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62.8% |
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64.1% |
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4 |
Earnings Release (Continued)
The Company sold 608 homes during the second quarter, including 359 single-family rental homes and 249 real estate owned (“REO”) homes. The single-family rental homes were sold for gross sales proceeds of $56 million, and the Company recorded a gain of approximately $0.5 million on these sales. The REO homes were sold for gross sales proceeds of $33.6 million, and the Company recorded a gain of $1.7 million which is included in discontinued operations, net. During the three months ended June 30, 2016, the Company acquired 87 homes for an aggregate estimated total investment of approximately $17.0 million, or approximately $196,000 per home, including estimated investment costs for renovation.
NPL Business
On May 4, 2016, the Company’s Board of Trustees (the “Board”) authorized the marketing of the non-performing loan (“NPL”) portfolio, which the Company commenced in the second quarter. The operations of the NPL business segment are recorded as discontinued operations, net for the three and six months ended June 30, 2016 and all comparable periods.
NPL resolutions and REO sales produced $46.8 million of gross cash proceeds during the quarter, resulting in net proceeds of $29.4 million after associated debt pay down of $17.4 million. As of June 30, 2016 there was $250.1 million of outstanding debt associated with the NPL business, which the Company intends to pay down in connection with the wind-down of the NPL business.
Subsequent to June 30, 2016, the Company sold 339 re-performing loans in a single sale transaction generating net sales proceeds of $45.9 million of which $23.7 million was used to pay down debt.
Balance Sheet and Capital Markets Activities
As of June 30, 2016, the Company had $4.0 billion of debt outstanding and approximately $525 million of undrawn commitments on its credit facilities.
In June 2016, the Company closed its first debt financing transaction post Merger, entering into a $485.6 million securitization (net of Class F and G certificates retained by the Company) with an initial maturity date of July 2018 and three one-year extension options. The Company separately entered into an interest rate swap contract in June 2016, effectively fixing the interest rate on approximately $450 million of variable rate debt for five years. This swap transaction is structured as a step-up swap, which locks in the forward LIBOR curve resulting in an average effective fixed rate of 3.3% over the five-year term.
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5 |
Earnings Release (Continued)
The Company did not repurchase any shares in the second quarter of 2016 under its $250 million repurchase program, which is authorized through May 6, 2017. To date the Company has purchased 2.4 million shares for an aggregate purchase price of $52.8 million at an average of $22.19 per share.
On August 2, 2016, the Board declared a dividend of $0.22 per common share for the third quarter of 2016, which will be paid on October 15, 2016 to shareholders of record on September 30, 2016.
Full Year 2016 Financial Guidance
Earlier this year the Company provided Core FFO per share, occupancy, rent growth, and Core NOI margin guidance, which excludes the operations of our NPL business. The Company has tightened its Core FFO per share, occupancy, and rent growth guidance for the full year ending December 31, 2016, and re-affirms the Core NOI margin guidance for the 2016 fiscal year, as set forth below. The Company does not provide forward-looking guidance for certain financial measures on a generally accepted accounting principles (“GAAP”) basis because it is unable to reasonably predict certain items contained in the GAAP measures, including one-time and infrequent items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, NPL operations, Merger and transaction related expenses, share-based compensation and other items not reflective of the Company's ongoing operations.
2016 Full-Year Guidance |
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as of March 31, 2016 |
Updated Guidance |
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Core FFO per share |
$1.55 - $1.65 |
$1.60 - $1.65 |
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Stabilized Occupancy |
94% - 95% |
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95% |
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Blended Rent Growth |
4% - 5% |
4.5% - 5% |
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Core NOI margin (Stabilized) |
62% - 64% |
62% - 64% |
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This outlook is based on a number of assumptions, many of which are outside the Company’s control and all of which are subject to change. This outlook reflects the Company’s expectations on (1) existing investments and (2) yield on incremental investments inclusive of the Company’s existing pipeline. All guidance is based on current expectations of future economic conditions and the judgment of the Company’s management team.
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6 |
Earnings Release (Continued)
Second Quarter 2016 Conference Call
A conference call is scheduled on Tuesday, August 9, 2016, at 11:00 a.m. Eastern Time to discuss the Company’s financial results for the three months and six months ended June 30, 2016. The domestic dial-in number is 1-877-407-9039 (for U.S. and Canada) and the international dial-in number is 1-201-689-8470 (passcode not required). An audio webcast may be accessed at www.colonystarwood.com, in the investor relations section. A replay of the call will be available through September 9, 2016, and can be accessed by calling 1-877-870-5176 (U.S. and Canada) or 1-858-384-5517 (international), replay pin number 13641395, or by using the link at www.colonystarwood.com, in the investor relations section.
About Colony Starwood Homes
Colony Starwood Homes (NYSE: SFR) is one of the largest publicly traded owners and operators of single-family rental homes in the United States. Colony Starwood Homes acquires, renovates, leases, maintains and manages single- family homes in markets that exhibit favorable demographics and long-term economic trends, as well as strengthening demand for rental properties. Colony Starwood Homes is building its business upon a foundation of respect for its residents and the communities in which it operates. Additional information can be found at www.colonystarwood.com.
Additional information
A copy of the Second Quarter 2016 Supplemental Information Package (“Q2 2016 Supplement”) and this press release are available on the Company’s website at www.colonystarwood.com.
Notice Regarding Non-GAAP Financial Measures
This press release and the Q2 2016 Supplement contain and may refer to certain Non-GAAP financial measures and terms that management believes are helpful in understanding our business, as further set forth in the definitions, explanations and reconciliations of the non-GAAP financial measure to their most comparable GAAP financial measures included in the Appendix. These measures and terms are in addition to, not a substitute for or superior to measures of financial performance prepared in accordance with GAAP, and should be read together with the most comparable GAAP measures.
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7 |
Earnings Release (Continued)
Certain statements in this press release and the Q2 2016 supplement are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company’s actual results and performance could differ materially from those set forth in, or implied by, the forward-looking statements due to a variety of risks, uncertainties and other factors. Factors that could materially and adversely affect the Company’s business, financial condition, liquidity, results of operations and prospects, as well as the Company’s ability to make distributions to its shareholders, include, but are not limited to: failure to plan and manage the Merger and associated transitions effectively and efficiently; the possibility that the anticipated benefits from the Merger may not be realized or may take longer to realize than expected; unexpected costs or unexpected liabilities that may arise from the Merger; the outcome of any legal proceedings that have been or may be instituted against the Company, CAH or others following the announcement or the completion of the Merger and associated transitions; changes in the Company’s business and growth strategies; volatility in the real estate industry, interest rates and spreads, the debt or equity markets, the economy generally or the rental home market specifically; declines in the value of homes, and macroeconomic shifts in demand for, and competition in the supply of, rental homes; the availability of attractive investment opportunities in homes that satisfy the Company’s investment objectives and business and growth strategies; the Company’s ability to wind-down its NPL business in the anticipated time period and to re-deploy net cash proceeds therefrom; the Company’s ability to lease or re-lease its rental homes to qualified residents on attractive terms or at all; the availability, terms and deployment of short-term and long-term capital; the adequacy of the Company’s cash reserves and working capital; potential conflicts of interest with Starwood Capital Group Global, L.P., Colony Capital, Inc. and their affiliates; effects of derivative and hedging transactions; the Company’s ability to maintain its exemption from registration as an investment company under the Investment Company Act of 1940, as amended; changes in governmental regulations, tax laws and rates, and similar matters; limitations imposed on the Company’s business and its ability to satisfy complex rules in order for the Company and, if applicable, certain of the Company’s subsidiaries to qualify as a REIT for U.S. federal income tax purposes, and the Company’s ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. Except as required by law, the Company is under no duty to, and the Company does not intend to, update any of its forward-looking statements appearing herein, whether as a result of new information, future events or otherwise.
Contacts: |
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Investor Relations |
Media Relations |
John Christie Phone: 510-982-5470 |
Jason Chudoba Phone: 646-277-1249 |
Email: IR@colonystarwood.com |
Email: Jason.chudoba@icrinc.com |
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8 |
II. Highlights
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9 |
Quarterly Overview
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Financial and Operating Results(1) |
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▪ Net loss of $15.7 million or ($0.15) per share and $59.9 million or ($0.59) per share for the three and six months ended June 30, 2016, respectively, with Core FFO of $41.9 million or $0.39 per share and $85.6 million or $0.79 per share, respectively ▪ Quarterly Same Store Core NOI margin of 62.8% and Full Year Same Store Core NOI margin of 64.1% for the three and six months ended June 30, 2016, respectively ▪ Quarterly Same Store Homes NOI increased 7.8% and Full Year Same Store Homes NOI increased 10.9% for the three and six months ended June 30, 2016, respectively ▪ Quarterly Same Store revenue growth of 6.3% and Full Year Same Store revenue growth of 6.3% for the three and six months ended June 30, 2016, respectively ▪ Quarterly Same Store Blended Rent Growth was 5.5% ▪ Total Owned Homes Occupancy was 95.4% as of June 30, 2016, with Quarterly Same Store Occupancy of 95.8% ▪ Tightened 2016 full-year Core FFO guidance to $1.60 - $1.65 per share |
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Capital Markets & Liquidity |
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▪ Issued fifth securitization transaction in June for $486 million at LIBOR+230bps ▪ Entered into a swap contract to fix $450 million variable-rate securitization debt at an average rate of 3.3% during the five-year term ▪ Reduced total debt by approximately $95 million with excess cash from operations and disposition activity |
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NPL Business |
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▪ Anticipate NPL bulk sale by year end 2016 ▪ NPL resolutions and REO sales produced $46.8 million of gross cash proceeds during the quarter, resulting in net proceeds of $29.4 million after associated debt pay down of $17.4 million ▪ Completed re-performing loan sale in July totaling $45.9 million in net sales proceeds; paid down $23.7 million of associated debt |
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Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
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(1) Colony Starwood Home’s Quarterly Same Store and Full Year Same Store property counts for the quarter-to-date and the year-to-date measurements are 24,657 and 22,647, respectively. |
10 |
III. Consolidated Financials
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11 |
Balance Sheet (Condensed)
Dollars in thousands
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Assets |
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Liabilities |
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Investments in real estate properties: |
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Accounts payable and accrued expenses |
$ |
91,989 |
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Land and land improvements |
$ |
1,513,633 |
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Resident prepaid rent and security deposits |
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56,329 |
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Buildings and building improvements |
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4,263,105 |
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Secured credit facilities |
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700,000 |
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Furniture, fixtures and equipment |
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117,240 |
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Mortgage loans, net |
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2,742,720 |
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Total investments in real estate properties |
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5,893,978 |
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Convertible senior notes, net |
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346,685 |
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Accumulated depreciation |
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(291,581 |
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Liabilities related to assets held for sale |
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260,441 |
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Investments in real estate properties, net |
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5,602,397 |
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Other liabilities |
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15,604 |
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Real estate held for sale, net |
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48,945 |
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Total liabilities |
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4,213,768 |
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Cash and cash equivalents |
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164,800 |
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Equity |
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Restricted cash |
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164,844 |
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Common shares, at par |
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1,015 |
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Investments in unconsolidated joint ventures |
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34,915 |
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Additional paid-in capital |
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2,730,874 |
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Asset-backed securitization certificates |
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110,538 |
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Accumulated deficit |
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(250,752 |
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Assets held for sale |
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462,015 |
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Accumulated other comprehensive loss |
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(16,447 |
) |
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Goodwill |
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257,271 |
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Total shareholders' equity |
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2,464,690 |
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Other assets, net |
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40,666 |
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Non-controlling interests |
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207,933 |
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Total equity |
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2,672,623 |
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Total assets |
$ |
6,886,391 |
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Total liabilities and equity |
$ |
6,886,391 |
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Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
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12 |
Statements of Operations
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2016 |
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2015(1) |
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2016 |
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2015(1) |
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Revenues |
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Rental income |
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$ |
134,442 |
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$ |
70,434 |
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$ |
264,894 |
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$ |
134,652 |
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Other property income |
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6,412 |
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4,778 |
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12,456 |
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9,393 |
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Other income |
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2,979 |
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- |
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5,869 |
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- |
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Total revenues |
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143,833 |
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75,212 |
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283,219 |
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144,045 |
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Expenses |
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Property operating and maintenance |
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22,030 |
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14,700 |
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40,548 |
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28,194 |
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Real estate taxes, insurance and HOA costs |
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27,832 |
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14,532 |
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55,114 |
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28,572 |
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Property management expenses |
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9,332 |
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4,471 |
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18,083 |
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9,261 |
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Interest expense |
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37,984 |
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15,169 |
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75,441 |
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31,315 |
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Depreciation and amortization |
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44,844 |
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26,874 |
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88,474 |
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52,885 |
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Impairment of real estate assets |
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144 |
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275 |
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174 |
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453 |
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Share-based compensation |
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711 |
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- |
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1,098 |
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- |
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General and administrative |
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13,537 |
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8,734 |
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30,875 |
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17,979 |
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Merger and transaction-related expenses |
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5,073 |
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- |
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28,555 |
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- |
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Total expenses |
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161,487 |
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84,755 |
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338,362 |
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168,659 |
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Net gain on sale of real estate owned |
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527 |
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838 |
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1,911 |
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1,239 |
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Equity in income from unconsolidated joint ventures |
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157 |
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13 |
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354 |
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106 |
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Other expense, net |
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(2,296 |
) |
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(2,145 |
) |
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(2,691 |
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(1,959 |
) |
Loss before income taxes |
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(19,266 |
) |
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(10,837 |
) |
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(55,569 |
) |
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(25,228 |
) |
Income tax (expense) benefit |
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(81 |
) |
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(267 |
) |
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(326 |
) |
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(254 |
) |
Net loss from continuing operations |
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(19,347 |
) |
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(11,104 |
) |
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(55,895 |
) |
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(25,482 |
) |
Loss from discontinued operations |
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2,684 |
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3,854 |
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|
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(7,817 |
) |
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|
839 |
|
Net loss |
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(16,663 |
) |
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(7,250 |
) |
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(63,712 |
) |
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(24,643 |
) |
Net loss attributable to non-controlling interests |
|
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988 |
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2,649 |
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3,838 |
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|
9,121 |
|
Net loss attributable to Colony Starwood Homes |
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(15,675 |
) |
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(4,601 |
) |
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(59,874 |
) |
|
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(15,522 |
) |
Net income attributable to preferred shareholders |
|
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- |
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(4 |
) |
|
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- |
|
|
|
(8 |
) |
Net loss available to common shareholders |
|
$ |
(15,675 |
) |
|
$ |
(4,605 |
) |
|
$ |
(59,874 |
) |
|
$ |
(15,530 |
) |
|
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Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) For GAAP purposes, the Merger resulted in a reverse acquisition of SWAY by CAH. Historical financial statements for periods prior to the Merger include only the results of operations and financial position of CAH. |
13 |
Reconciliation to FFO and Core FFO
Dollars in thousands, except share and per share data
|
|
Three Months Ended June 30,2016 |
|
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Six Months Ended June 30,2016 |
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Reconciliation of net loss to NAREIT FFO |
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Net loss attributable to common shareholders |
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$ |
(15,675 |
) |
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$ |
(59,874 |
) |
Adjustments: |
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|
|
|
|
|
Depreciation and amortization on real estate assets |
|
|
44,700 |
|
|
|
88,084 |
|
Impairment of real estate assets |
|
|
144 |
|
|
|
174 |
|
Net gain on sale of real estate |
|
|
(527 |
) |
|
|
(1,911 |
) |
Non-controlling interests |
|
|
(988 |
) |
|
|
(3,838 |
) |
Discontinued operations, net (NPL/REO) |
|
|
(2,684 |
) |
|
|
7,817 |
|
NAREIT FFO |
|
$ |
24,970 |
|
|
$ |
30,452 |
|
|
|
|
|
|
|
|
|
|
NAREIT FFO per share (1) |
|
$ |
0.23 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
Adjustments for Core FFO |
|
|
|
|
|
|
|
|
NAREIT FFO |
|
$ |
24,970 |
|
|
$ |
30,452 |
|
Amortization of deferred financing costs and debt premium discounts |
|
|
8,799 |
|
|
|
17,228 |
|
Merger and transaction-related expenses |
|
|
5,073 |
|
|
|
28,555 |
|
Integration Costs (2) |
|
|
1,753 |
|
|
|
7,383 |
|
Share-based compensation |
|
|
711 |
|
|
|
1,098 |
|
Adjustments for derivative instruments |
|
|
552 |
|
|
|
852 |
|
Core FFO |
|
$ |
41,858 |
|
|
$ |
85,568 |
|
|
|
|
|
|
|
|
|
|
Core FFO per share (1) |
|
$ |
0.39 |
|
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Common shares total 107,886,847 and 108,176,801 for the three and six month periods, respectively. Comprised of 101,486,847 and 101,776,801 weighted-average shares for the three and six month periods ended, respectively, and outstanding OP units exchangeable for 6,400,000 common shares. (2) Please see Appendix A for a definition of Integration Costs, and Appendix B for a summary of Integration Costs through the three and six months ended June 30, 2016. We believe that identifying Integration Costs is useful for investors as it allows investors to separate these costs from the core operating performance of our Single Family Rental business. |
14 |
Income Statement Bridge
Quarter-to-date normalizations for Merger and transaction, integration and NPL costs
Dollars in thousand
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,2016 |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(+) |
|
(-) |
|
(-) |
|
(-) |
|
(=) |
|
|
Single Family Rental |
|
||||||||||||||||||
|
Consolidated Results |
|
Merger and Transaction-Related Expenses |
|
Integration Costs (1) |
|
NPL |
|
Total Single Family Rental |
|
|
Same Store Homes |
|
|
Stabilized Homes |
|
|
Development Homes |
|
|
Other Homes |
|
|||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rents from single-family properties |
$ |
134,442 |
|
|
|
|
|
|
|
|
|
|
$ |
134,442 |
|
|
$ |
106,264 |
|
|
$ |
27,507 |
|
|
$ |
2 |
|
|
$ |
669 |
|
Fees from single-family properties |
|
3,728 |
|
|
|
|
|
|
|
|
|
|
|
3,728 |
|
|
|
2,935 |
|
|
|
762 |
|
|
|
- |
|
|
|
31 |
|
Tenant chargebacks |
|
2,684 |
|
|
|
|
|
|
|
|
|
|
|
2,684 |
|
|
|
2,092 |
|
|
|
453 |
|
|
|
- |
|
|
|
139 |
|
Asset Management Fees |
|
2,979 |
|
|
|
|
|
|
|
|
|
|
|
2,979 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,979 |
|
Total revenues |
|
143,833 |
|
|
- |
|
|
- |
|
|
- |
|
|
143,833 |
|
|
|
111,291 |
|
|
|
28,722 |
|
|
|
2 |
|
|
|
3,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and maintenance costs |
|
22,030 |
|
|
|
|
|
|
|
|
|
|
|
22,030 |
|
|
|
16,184 |
|
|
|
4,575 |
|
|
|
54 |
|
|
|
1,217 |
|
Real estate taxes, insurance, HOA costs |
|
27,832 |
|
|
|
|
|
|
|
|
|
|
|
27,832 |
|
|
|
21,462 |
|
|
|
5,554 |
|
|
|
21 |
|
|
|
795 |
|
Property management |
|
9,332 |
|
|
|
|
|
806 |
|
|
|
|
|
8,526 |
|
|
|
6,031 |
|
|
|
1,206 |
|
|
|
25 |
|
|
|
1,264 |
|
Total operating expenses |
|
59,194 |
|
|
- |
|
|
806 |
|
|
- |
|
|
58,388 |
|
|
$ |
43,677 |
|
|
$ |
11,335 |
|
|
$ |
100 |
|
|
$ |
3,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
84,639 |
|
|
- |
|
|
(806 |
) |
|
- |
|
|
85,445 |
|
|
|
67,614 |
|
|
|
17,387 |
|
|
|
(98 |
) |
|
|
542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
14,248 |
|
|
|
|
|
947 |
|
|
|
|
|
13,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and transaction-related expenses |
|
5,073 |
|
|
5,073 |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
44,844 |
|
|
|
|
|
|
|
|
|
|
|
44,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
37,984 |
|
|
|
|
|
|
|
|
|
|
|
37,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense /(income) |
|
1,837 |
|
|
|
|
|
|
|
|
|
|
|
1,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-operating expenses |
|
103,986 |
|
|
5,073 |
|
|
947 |
|
|
- |
|
|
97,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) from continuing operations |
|
(19,347 |
) |
|
(5,073 |
) |
|
(1,753 |
) |
|
- |
|
|
(12,521 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations (NPL/REO) |
|
2,684 |
|
|
|
|
|
|
|
|
2,684 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) |
|
(16,663 |
) |
|
(5,073 |
) |
|
(1,753 |
) |
|
2,684 |
|
|
(12,521 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interests |
|
988 |
|
|
|
|
|
|
|
|
|
|
|
988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) available to common shareholders |
$ |
(15,675 |
) |
$ |
(5,073 |
) |
$ |
(1,753 |
) |
$ |
2,684 |
|
$ |
(11,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Please see Appendix A for a definition of Integration Costs, and Appendix B for a summary of Integration Costs through the three and six months ended June 30, 2016. We believe that identifying Integration Costs is useful for investors as it allows investors to separate these costs from the core operating performance of our Single Family Rental business. |
15 |
Income Statement Bridge
Year-to-date normalizations for Merger and transaction, integration and NPL costs
Dollars in thousands
|
Six Months Ended June 30,2016 |
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(+) |
|
(-) |
|
(-) |
|
(-) |
|
(=) |
|
|
Single Family Rental |
|
||||||||||||||||||
|
Consolidated Results |
|
Merger and Transaction-Related Expenses |
|
Integration Costs (1) |
|
NPL |
|
Total Single Family Rental |
|
|
Same Store Homes |
|
|
Stabilized Homes |
|
|
Development Homes |
|
|
Other Homes |
|
|||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rents from single-family properties |
$ |
264,894 |
|
|
|
|
|
|
|
|
|
|
$ |
264,894 |
|
|
$ |
192,050 |
|
|
$ |
71,123 |
|
|
$ |
3 |
|
|
$ |
1,718 |
|
Fees from single-family properties |
|
6,484 |
|
|
|
|
|
|
|
|
|
|
|
6,484 |
|
|
|
4,679 |
|
|
|
1,747 |
|
|
|
- |
|
|
|
58 |
|
Tenant chargebacks |
|
5,972 |
|
|
|
|
|
|
|
|
|
|
|
5,972 |
|
|
|
4,416 |
|
|
|
1,337 |
|
|
|
- |
|
|
|
219 |
|
Asset Management Fees |
|
5,869 |
|
|
|
|
|
|
|
|
|
|
|
5,869 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,869 |
|
Total revenues |
|
283,219 |
|
|
- |
|
|
- |
|
|
- |
|
|
283,219 |
|
|
|
201,145 |
|
|
|
74,207 |
|
|
|
3 |
|
|
|
7,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and maintenance costs |
|
40,548 |
|
|
|
|
|
|
|
|
|
|
|
40,548 |
|
|
|
27,693 |
|
|
|
10,919 |
|
|
|
104 |
|
|
|
1,832 |
|
Real estate taxes, insurance, HOA costs |
|
55,114 |
|
|
|
|
|
|
|
|
|
|
|
55,114 |
|
|
|
38,998 |
|
|
|
14,488 |
|
|
|
13 |
|
|
|
1,615 |
|
Property management |
|
18,083 |
|
|
|
|
|
2,108 |
|
|
|
|
|
15,975 |
|
|
|
10,251 |
|
|
|
3,090 |
|
|
|
44 |
|
|
|
2,590 |
|
Total operating expenses |
|
113,745 |
|
|
- |
|
|
2,108 |
|
|
- |
|
|
111,637 |
|
|
$ |
76,942 |
|
|
$ |
28,497 |
|
|
$ |
161 |
|
|
$ |
6,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
169,474 |
|
|
- |
|
|
(2,108 |
) |
|
- |
|
|
171,582 |
|
|
|
124,203 |
|
|
|
45,710 |
|
|
|
(158 |
) |
|
|
1,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
31,973 |
|
|
|
|
|
5,275 |
|
|
|
|
|
26,698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and transaction-related expenses |
|
28,555 |
|
|
28,555 |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
88,474 |
|
|
|
|
|
|
|
|
|
|
|
88,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
75,441 |
|
|
|
|
|
|
|
|
|
|
|
75,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense /(income) |
|
926 |
|
|
|
|
|
|
|
|
|
|
|
926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-operating expenses |
|
225,369 |
|
|
28,555 |
|
|
5,275 |
|
|
- |
|
|
191,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) from continuing operations |
|
(55,895 |
) |
|
(28,555 |
) |
|
(7,383 |
) |
|
- |
|
|
(19,957 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations (NPL/REO) |
|
(7,817 |
) |
|
|
|
|
|
|
|
(7,817 |
) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) |
|
(63,712 |
) |
|
(28,555 |
) |
|
(7,383 |
) |
|
(7,817 |
) |
|
(19,957 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-controlling interests |
|
3,838 |
|
|
|
|
|
|
|
|
|
|
|
3,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) available to common shareholders |
$ |
(59,874 |
) |
$ |
(28,555 |
) |
$ |
(7,383 |
) |
$ |
(7,817 |
) |
$ |
(16,119 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Please see Appendix A for a definition of Integration Costs, and Appendix B for a summary of Integration Costs through the three and six months ended June 30, 2016. We believe that identifying Integration Costs is useful for investors as it allows investors to separate these costs from the core operating performance of our Single Family Rental business. |
16 |
NOI by Segment
Dollars in thousands
|
|
Three Months Ended June 30,(1) |
|
|
|
Six Months Ended June 30,(1) |
|
||||||||||||||||||
|
|
2016 |
|
|
2015(2) |
|
|
Change % |
|
|
|
2016 |
|
|
2015(2) |
|
|
Change % |
|
||||||
Rental and other property revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store Homes |
|
$ |
111,291 |
|
|
$ |
104,698 |
|
|
|
6.3 |
% |
|
|
$ |
201,145 |
|
|
$ |
189,261 |
|
|
|
6.3 |
% |
Stabilized Homes |
|
|
28,722 |
|
|
|
14,776 |
|
|
|
94.4 |
% |
|
|
|
74,207 |
|
|
|
37,734 |
|
|
|
96.7 |
% |
Development Homes |
|
|
2 |
|
|
|
- |
|
|
|
100.0 |
% |
|
|
|
3 |
|
|
|
- |
|
|
|
100.0 |
% |
Other Homes |
|
|
3,818 |
|
|
|
3,818 |
|
|
|
0.0 |
% |
|
|
|
7,864 |
|
|
|
8,032 |
|
|
|
-2.1 |
% |
Total rental and other property revenues |
|
$ |
143,833 |
|
|
$ |
123,292 |
|
|
|
16.7 |
% |
|
|
$ |
283,219 |
|
|
$ |
235,027 |
|
|
|
20.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store Homes |
|
$ |
43,677 |
|
|
$ |
41,998 |
|
|
|
4.0 |
% |
|
|
$ |
76,942 |
|
|
$ |
77,251 |
|
|
|
-0.4 |
% |
Stabilized Homes |
|
|
11,335 |
|
|
|
7,405 |
|
|
|
53.1 |
% |
|
|
|
28,497 |
|
|
|
19,495 |
|
|
|
46.2 |
% |
Development Homes |
|
|
100 |
|
|
|
34 |
|
|
|
194.8 |
% |
|
|
|
161 |
|
|
|
92 |
|
|
|
73.7 |
% |
Other Homes |
|
|
3,276 |
|
|
|
3,592 |
|
|
|
-8.8 |
% |
|
|
|
6,037 |
|
|
|
7,105 |
|
|
|
-15.0 |
% |
Total property operating expenses |
|
$ |
58,388 |
|
|
$ |
53,029 |
|
|
|
10.1 |
% |
|
|
$ |
111,637 |
|
|
$ |
103,943 |
|
|
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income (NOI): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store Homes |
|
$ |
67,614 |
|
|
$ |
62,700 |
|
|
|
7.8 |
% |
|
|
$ |
124,203 |
|
|
$ |
112,010 |
|
|
|
10.9 |
% |
Stabilized Homes |
|
|
17,387 |
|
|
|
7,371 |
|
|
|
135.9 |
% |
|
|
|
45,710 |
|
|
|
18,239 |
|
|
|
150.6 |
% |
Development Homes |
|
|
(98 |
) |
|
|
(34 |
) |
|
|
188.0 |
% |
|
|
|
(158 |
) |
|
|
(92 |
) |
|
|
71.2 |
% |
Other Homes |
|
|
542 |
|
|
|
226 |
|
|
|
139.9 |
% |
|
|
|
1,827 |
|
|
|
927 |
|
|
|
97.1 |
% |
Total property NOI |
|
$ |
85,445 |
|
|
$ |
70,263 |
|
|
|
21.6 |
% |
|
|
$ |
171,582 |
|
|
$ |
131,084 |
|
|
|
30.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store operating metrics: |
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
||||
NOI margin |
|
|
60.8 |
% |
|
|
59.9 |
% |
|
|
|
|
|
|
|
61.7 |
% |
|
|
59.2 |
% |
|
|
|
|
Core NOI margin |
|
|
62.8 |
% |
|
|
62.2 |
% |
|
|
|
|
|
|
|
64.1 |
% |
|
|
61.5 |
% |
|
|
|
|
Occupancy % |
|
|
95.8 |
% |
|
|
95.6 |
% |
|
|
|
|
|
|
|
95.7 |
% |
|
|
95.5 |
% |
|
|
|
|
Turnover Rate |
|
|
9.5 |
% |
|
n/a |
|
|
|
|
|
|
|
|
16.7 |
% |
|
n/a |
|
|
|
|
|
||
Renewal/Replacement/Blended Rent Growth |
|
5.3%/5.9%/5.5 |
% |
|
n/a |
|
|
|
|
|
|
|
5.0%/4.6%/4.8 |
% |
|
n/a |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Colony Starwood Home’s Quarterly Same Store and Full Year Same Store property counts for the quarter-to-date and the year-to-date measurements are 24,657 and 22,647, respectively. (2) 2015 represents proforma financials for the combined Company. |
17 |
IV. Selected Additional Information
|
18 |
Home Count by Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market: |
|
Full Year Same Store Homes |
|
|
Full Year Stabilized Homes |
|
|
Quarterly Same Store Homes |
|
|
Quarterly Stabilized Homes |
|
|
Development Homes |
|
|
Other Homes |
|
|
Owned Homes (1) |
|
|
Owned Homes Occupied % (2) |
|
|
Non-owned, Managed Homes |
|
|
Total Homes |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
4,917 |
|
|
|
664 |
|
|
|
5,259 |
|
|
|
322 |
|
|
|
13 |
|
|
|
104 |
|
|
|
5,698 |
|
|
|
95.9% |
|
|
|
312 |
|
|
|
6,010 |
|
Southern California |
|
|
2,594 |
|
|
|
193 |
|
|
|
2,668 |
|
|
|
119 |
|
|
|
5 |
|
|
|
30 |
|
|
|
2,822 |
|
|
|
97.1% |
|
|
|
1,483 |
|
|
|
4,305 |
|
Tampa |
|
|
2,298 |
|
|
|
958 |
|
|
|
2,615 |
|
|
|
641 |
|
|
|
2 |
|
|
|
13 |
|
|
|
3,271 |
|
|
|
95.0% |
|
|
|
203 |
|
|
|
3,474 |
|
Houston |
|
|
2,263 |
|
|
|
483 |
|
|
|
2,380 |
|
|
|
366 |
|
|
|
5 |
|
|
|
72 |
|
|
|
2,823 |
|
|
|
94.0% |
|
|
|
- |
|
|
|
2,823 |
|
Miami |
|
|
2,121 |
|
|
|
1,578 |
|
|
|
2,479 |
|
|
|
1,220 |
|
|
|
21 |
|
|
|
77 |
|
|
|
3,797 |
|
|
|
94.1% |
|
|
|
146 |
|
|
|
3,943 |
|
Orlando |
|
|
1,760 |
|
|
|
647 |
|
|
|
1,879 |
|
|
|
528 |
|
|
|
- |
|
|
|
15 |
|
|
|
2,422 |
|
|
|
96.5% |
|
|
|
15 |
|
|
|
2,437 |
|
Las Vegas |
|
|
1,628 |
|
|
|
94 |
|
|
|
1,678 |
|
|
|
44 |
|
|
|
- |
|
|
|
2 |
|
|
|
1,724 |
|
|
|
94.6% |
|
|
|
190 |
|
|
|
1,914 |
|
Phoenix |
|
|
1,317 |
|
|
|
26 |
|
|
|
1,337 |
|
|
|
6 |
|
|
|
- |
|
|
|
3 |
|
|
|
1,346 |
|
|
|
95.9% |
|
|
|
454 |
|
|
|
1,800 |
|
Dallas |
|
|
1,171 |
|
|
|
931 |
|
|
|
1,370 |
|
|
|
732 |
|
|
|
6 |
|
|
|
84 |
|
|
|
2,192 |
|
|
|
95.1% |
|
|
|
- |
|
|
|
2,192 |
|
Denver |
|
|
1,087 |
|
|
|
863 |
|
|
|
1,237 |
|
|
|
713 |
|
|
|
18 |
|
|
|
1 |
|
|
|
1,969 |
|
|
|
94.4% |
|
|
|
- |
|
|
|
1,969 |
|
Top 10 Markets |
|
|
21,156 |
|
|
|
6,437 |
|
|
|
22,902 |
|
|
|
4,691 |
|
|
|
70 |
|
|
|
401 |
|
|
|
28,064 |
|
|
|
95.3% |
|
|
|
2,803 |
|
|
|
30,867 |
|
Northern California |
|
|
733 |
|
|
|
46 |
|
|
|
756 |
|
|
|
23 |
|
|
|
- |
|
|
|
3 |
|
|
|
782 |
|
|
|
98.3% |
|
|
|
1,097 |
|
|
|
1,879 |
|
Charlotte - Raleigh |
|
|
161 |
|
|
|
624 |
|
|
|
316 |
|
|
|
469 |
|
|
|
11 |
|
|
|
- |
|
|
|
796 |
|
|
|
96.5% |
|
|
|
- |
|
|
|
796 |
|
Nashville |
|
|
- |
|
|
|
194 |
|
|
|
- |
|
|
|
194 |
|
|
|
1 |
|
|
|
- |
|
|
|
195 |
|
|
|
98.5% |
|
|
|
- |
|
|
|
195 |
|
Other Markets |
|
|
597 |
|
|
|
380 |
|
|
|
683 |
|
|
|
294 |
|
|
|
- |
|
|
|
30 |
|
|
|
1,007 |
|
|
|
95.2% |
|
|
|
402 |
|
|
|
1,409 |
|
Total |
|
|
22,647 |
|
|
|
7,681 |
|
|
|
24,657 |
|
|
|
5,671 |
|
|
|
82 |
|
|
|
434 |
|
|
|
30,844 |
|
|
|
95.4% |
|
|
|
4,302 |
|
|
|
35,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Excludes REO properties associated with the NPL business. |
19 |
Asset Rollforward
Three months ended June 30, 2016
Market: |
|
Properties as of 03/31/16 (1) |
|
|
Acquisitions (1) |
|
|
Dispositions (1) |
|
|
Properties as of 06/30/16 (1) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
5,800 |
|
|
|
9 |
|
|
|
(111 |
) |
|
|
5,698 |
|
Miami |
|
|
3,862 |
|
|
|
- |
|
|
|
(65 |
) |
|
|
3,797 |
|
Tampa |
|
|
3,286 |
|
|
|
12 |
|
|
|
(27 |
) |
|
|
3,271 |
|
Houston |
|
|
2,889 |
|
|
|
- |
|
|
|
(66 |
) |
|
|
2,823 |
|
Southern California |
|
|
2,839 |
|
|
|
- |
|
|
|
(17 |
) |
|
|
2,822 |
|
Orlando |
|
|
2,437 |
|
|
|
- |
|
|
|
(15 |
) |
|
|
2,422 |
|
Dallas |
|
|
2,225 |
|
|
|
7 |
|
|
|
(40 |
) |
|
|
2,192 |
|
Denver |
|
|
1,957 |
|
|
|
15 |
|
|
|
(3 |
) |
|
|
1,969 |
|
Las Vegas |
|
|
1,725 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
1,724 |
|
Phoenix |
|
|
1,347 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
1,346 |
|
Top 10 Markets |
|
|
28,367 |
|
|
|
43 |
|
|
|
(346 |
) |
|
|
28,064 |
|
Northern California |
|
|
787 |
|
|
|
- |
|
|
|
(5 |
) |
|
|
782 |
|
Charlotte - Raleigh |
|
|
754 |
|
|
|
42 |
|
|
|
- |
|
|
|
796 |
|
Nashville |
|
|
193 |
|
|
|
2 |
|
|
|
- |
|
|
|
195 |
|
Other Markets |
|
|
1,015 |
|
|
|
- |
|
|
|
(8 |
) |
|
|
1,007 |
|
Total Owned Homes |
|
|
31,116 |
|
|
|
87 |
|
|
|
(359 |
) |
|
|
30,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owned, Managed Homes |
|
|
4,388 |
|
|
|
4 |
|
|
|
(90 |
) |
|
|
4,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Homes |
|
|
35,504 |
|
|
|
91 |
|
|
|
(449 |
) |
|
|
35,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Excludes REO properties associated with the NPL business. |
20 |
Market Price Appreciation
Market home price appreciation from weighted average acquisition date through June 30, 2016(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSH Weighted Average |
|
Aggregate Investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition Date (2) |
|
($ millions) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
CSH Weighted Average |
|
20.3% |
|
|
|
|
1.8 |
% |
22.0% |
|
|
|
|
|
|
Nov' 13 |
|
$5,789 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
United States Average |
|
13.4% |
1.4 |
% |
14.7% |
|
|
|
|
|
|
|
|
|
|
|
Nov' 13 |
|
N/A |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Northern California |
|
27.5% |
2.3 |
% |
29.8% |
Jul' 13 |
|
$178 |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Denver |
|
24.4% |
2.9 |
% |
27.3% |
May' 14 |
|
$427 |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Southern California |
|
24.2% |
1.6 |
% |
25.8% |
|
May' 13 |
|
$849 |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Las Vegas |
|
22.1% |
1.9 |
% |
24.1% |
|
|
Sep' 13 |
|
$353 |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Phoenix |
|
21.5% |
|
1.9 |
% |
23.4% |
|
|
|
Mar' 13 |
|
$201 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Miami |
|
21.1% |
2.1 |
% |
23.2% |
|
|
|
|
Feb' 14 |
|
$811 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Tampa |
|
20.7% |
|
2.0 |
% |
22.7% |
|
|
|
|
|
Dec' 13 |
|
$567 |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Atlanta |
|
19.6% |
1.6 |
|
% |
21.3% |
|
|
|
|
|
|
Sep' 13 |
|
$823 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Dallas |
|
18.7% |
|
2.2 |
% |
20.9% |
|
|
|
|
|
|
|
|
Apr' 14 |
|
$383 |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Orlando |
|
18.7% |
|
|
|
1.9 |
% |
20.6% |
|
|
|
|
|
|
|
|
Dec' 13 |
|
$390 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Houston |
|
17.4% |
|
|
0.0% |
17.4% |
|
|
|
|
|
|
|
|
|
Oct' 13 |
|
$418 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Charlotte-Raleigh |
|
7.3% |
1.3 |
% |
8.5% |
|
|
|
|
|
|
|
|
|
|
|
|
Dec' 14 |
|
$166 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Nashville |
|
7.0% |
1.8 |
% |
8.8% |
|
|
|
|
|
|
|
|
|
|
|
|
May' 15 |
|
$58 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Other CSH Markets |
|
5.4% |
0.8 |
% |
6.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May' 14 |
|
$164 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
Cumulative through March 31, 2016 |
|
|
Q2 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
Source: John Burns Real Estate Consulting (“JBREC”) (1) Per JBREC, reflects market-level single family home price appreciation from market-weighted average acquisition date through June 30, 2016; weighted by Aggregate Investment. (2) Based on average acquisition date of homes in indicated market weighted by Aggregate Investment; U.S. average based on national home price appreciation since CSH’s weighted average acquisition date of November 2013. (3) The sum of (a) the total acquisition cost for each home in an identified population excluding the purchase accounting fair market value step-up applied to SWAY assets as of the close of Merger on January 5, 2016, and (b) all property related capitalized expenditures incurred in the renovation/rehabilitation of a property. |
21 |
Debt Summary
Dollars in millions
|
|
|
|
|
|
|
|
|
Amount outstanding |
|
Interest rate |
Initial maturity |
Extensions |
Full maturity |
|
|
|
|
|
|
|
|
|
Securitizations: (1)(2) |
|
|
|
|
|
|
|
CAH 2014-1 securitization |
|
$498 |
|
L+178bps |
Apr-17 |
Two, one-year |
May-19 |
CAH 2014-2 securitization |
|
$553 |
|
L+173bps |
Jun-16 |
Three, one-year |
Jul-19 |
SWAY 2014-1 securitization, net (3) |
|
$500 |
|
L+236bps |
Jan-17 |
Three, one-year |
Jan-20 |
CAH 2015-1 securitization, net (3) |
|
$639 |
|
L+197bps |
Jun-17 |
Three, one-year |
Jul-20 |
CSH 2016-1 securitization (4) |
|
$486 |
|
L+230bps |
Jul-18 |
Three, one-year |
Jul-21 |
Total securitizations |
$ |
2,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured credit facilities: |
|
|
|
|
|
|
|
CAH credit facility |
|
$0 |
|
L+300bps |
Jul-17 |
None |
Jul-17 |
SWAY credit facility |
|
$700 |
|
L+295bps |
Feb-17 |
One-year |
Feb-18 |
Total secured credit facilities |
|
$700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible debt: |
|
|
|
|
|
|
|
Convertible notes (due 2017) |
|
$173 |
|
450bps |
Oct-17 |
None |
Oct-17 |
Convertible notes (due 2019) |
|
$230 |
|
300bps |
Jul-19 |
None |
Jul-19 |
Total convertible debt |
|
$403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total single-family REIT debt |
$ |
3,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt related to assets held for sale (5) |
|
$250 |
|
L+238bps |
Mar-17 |
6-months |
Sep-17 |
|
|
|
|
|
|
|
|
Total debt outstanding (6) |
$ |
4,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Colony Starwood Homes entered into an interest rate swap contract in February 2016 with a notional amount of $1.6B at 2.75%. (2) Colony Starwood Homes entered into an interest rate swap contract in June 2016 with a notional amount of $450M at 3.32%. (3) Securitization net of Class G certificate; CAH 2015-1 in the amount of $33.6M and SWAY 2014-1 in the amount of $26.6. (4) Securitization net of class F and G certificates, in the amount of $50.3M. (5) NPL repurchase facility. |
22 |
V. Same Store Information
|
23 |
Portfolio Overview – Quarterly Same Store
Market: |
|
Quarterly Same Store Homes |
|
|
Occupancy % |
|
|
Average Acquisition Cost per Home |
|
|
Average Investment |
|
|
Average Home Size (sq. ft.) |
|
|
Weighted Average Home Age (years) |
|
|
Average Monthly Rent per Occupied Home |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
5,259 |
|
|
|
96.1% |
|
|
$ |
125,000 |
|
|
$ |
142,314 |
|
|
|
1,985 |
|
|
|
23 |
|
|
$ |
1,263 |
|
Southern California |
|
|
2,668 |
|
|
|
97.2% |
|
|
|
269,842 |
|
|
|
304,226 |
|
|
|
1,714 |
|
|
|
40 |
|
|
|
1,985 |
|
Tampa |
|
|
2,615 |
|
|
|
95.1% |
|
|
|
161,414 |
|
|
|
183,886 |
|
|
|
1,708 |
|
|
|
29 |
|
|
|
1,470 |
|
Houston |
|
|
2,380 |
|
|
|
94.1% |
|
|
|
148,044 |
|
|
|
150,759 |
|
|
|
1,921 |
|
|
|
18 |
|
|
|
1,469 |
|
Miami |
|
|
2,479 |
|
|
|
95.5% |
|
|
|
203,143 |
|
|
|
215,884 |
|
|
|
1,698 |
|
|
|
40 |
|
|
|
1,741 |
|
Orlando |
|
|
1,879 |
|
|
|
96.5% |
|
|
|
130,392 |
|
|
|
156,947 |
|
|
|
1,710 |
|
|
|
27 |
|
|
|
1,317 |
|
Las Vegas |
|
|
1,678 |
|
|
|
94.6% |
|
|
|
187,244 |
|
|
|
202,949 |
|
|
|
2,032 |
|
|
|
17 |
|
|
|
1,392 |
|
Dallas |
|
|
1,370 |
|
|
|
95.4% |
|
|
|
165,213 |
|
|
|
169,232 |
|
|
|
2,001 |
|
|
|
23 |
|
|
|
1,535 |
|
Phoenix |
|
|
1,337 |
|
|
|
95.9% |
|
|
|
137,387 |
|
|
|
152,172 |
|
|
|
1,699 |
|
|
|
26 |
|
|
|
1,147 |
|
Denver |
|
|
1,237 |
|
|
|
95.4% |
|
|
|
185,057 |
|
|
|
204,963 |
|
|
|
1,676 |
|
|
|
37 |
|
|
|
1,671 |
|
Top 10 Markets |
|
|
22,902 |
|
|
|
95.7% |
|
|
|
168,122 |
|
|
|
185,819 |
|
|
|
1,833 |
|
|
|
28 |
|
|
|
1,490 |
|
Northern California |
|
|
756 |
|
|
|
98.3% |
|
|
|
228,540 |
|
|
|
252,182 |
|
|
|
1,428 |
|
|
|
47 |
|
|
|
1,735 |
|
Charlotte - Raleigh |
|
|
316 |
|
|
|
98.7% |
|
|
|
157,666 |
|
|
|
178,548 |
|
|
|
2,153 |
|
|
|
14 |
|
|
|
1,474 |
|
Other Markets |
|
|
683 |
|
|
|
94.6% |
|
|
|
150,739 |
|
|
|
156,793 |
|
|
|
1,585 |
|
|
|
39 |
|
|
|
1,561 |
|
Total |
|
|
24,657 |
|
|
|
95.8% |
|
|
$ |
169,358 |
|
|
$ |
186,955 |
|
|
|
1,817 |
|
|
|
29 |
|
|
$ |
1,499 |
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
|
24 |
Portfolio Overview – Full Year Same Store
Market: |
|
Full Year Same Store Homes |
|
|
Occupancy % |
|
|
Average Acquisition Cost per Home |
|
|
Average Investment |
|
|
Average Home Size (sq. ft.) |
|
|
Weighted Average Home Age (years) |
|
|
Average Monthly Rent per Occupied Home |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
4,917 |
|
|
|
96.1% |
|
|
$ |
123,698 |
|
|
$ |
141,749 |
|
|
|
1,976 |
|
|
|
23 |
|
|
$ |
1,259 |
|
Southern California |
|
|
2,594 |
|
|
|
97.1% |
|
|
|
268,651 |
|
|
|
303,122 |
|
|
|
1,714 |
|
|
|
40 |
|
|
|
1,983 |
|
Tampa |
|
|
2,298 |
|
|
|
94.9% |
|
|
|
161,729 |
|
|
|
184,107 |
|
|
|
1,712 |
|
|
|
29 |
|
|
|
1,471 |
|
Houston |
|
|
2,263 |
|
|
|
94.2% |
|
|
|
147,658 |
|
|
|
150,485 |
|
|
|
1,920 |
|
|
|
18 |
|
|
|
1,465 |
|
Miami |
|
|
2,121 |
|
|
|
95.1% |
|
|
|
201,019 |
|
|
|
212,367 |
|
|
|
1,677 |
|
|
|
41 |
|
|
|
1,720 |
|
Orlando |
|
|
1,760 |
|
|
|
96.3% |
|
|
|
129,616 |
|
|
|
156,522 |
|
|
|
1,714 |
|
|
|
27 |
|
|
|
1,315 |
|
Las Vegas |
|
|
1,628 |
|
|
|
94.5% |
|
|
|
186,536 |
|
|
|
202,173 |
|
|
|
2,028 |
|
|
|
17 |
|
|
|
1,390 |
|
Phoenix |
|
|
1,317 |
|
|
|
95.9% |
|
|
|
136,781 |
|
|
|
151,641 |
|
|
|
1,697 |
|
|
|
26 |
|
|
|
1,146 |
|
Dallas |
|
|
1,171 |
|
|
|
95.4% |
|
|
|
158,201 |
|
|
|
162,180 |
|
|
|
1,952 |
|
|
|
24 |
|
|
|
1,502 |
|
Denver |
|
|
1,087 |
|
|
|
95.2% |
|
|
|
179,150 |
|
|
|
199,906 |
|
|
|
1,661 |
|
|
|
37 |
|
|
|
1,656 |
|
Top 10 Markets |
|
|
21,156 |
|
|
|
95.6% |
|
|
|
166,672 |
|
|
|
184,599 |
|
|
|
1,826 |
|
|
|
28 |
|
|
|
1,481 |
|
Northern California |
|
|
733 |
|
|
|
98.2% |
|
|
|
227,520 |
|
|
|
251,123 |
|
|
|
1,427 |
|
|
|
47 |
|
|
|
1,733 |
|
Charlotte - Raleigh |
|
|
161 |
|
|
|
97.5% |
|
|
|
152,635 |
|
|
|
171,490 |
|
|
|
2,074 |
|
|
|
14 |
|
|
|
1,440 |
|
Other Markets |
|
|
597 |
|
|
|
94.6% |
|
|
|
150,146 |
|
|
|
156,764 |
|
|
|
1,599 |
|
|
|
39 |
|
|
|
1,550 |
|
Total |
|
|
22,647 |
|
|
|
95.7% |
|
|
$ |
168,106 |
|
|
$ |
185,924 |
|
|
|
1,809 |
|
|
|
29 |
|
|
$ |
1,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
|
25 |
Same Store Year-Over-Year Results
Dollars in thousands
|
|
Quarterly Same Store (1) |
|
|
Full Year Same Store (1) |
|
||||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
|
|
2016(2) |
|
|
2015(3) |
|
|
% Change |
|
|
2016(2) |
|
|
2015(3) |
|
|
% Change |
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
|
$ |
106,264 |
|
|
$ |
100,011 |
|
|
|
6.3 |
% |
|
$ |
192,050 |
|
|
$ |
180,857 |
|
|
|
6.2 |
% |
Fee income |
|
|
2,935 |
|
|
|
2,014 |
|
|
|
45.8 |
% |
|
|
4,679 |
|
|
|
3,523 |
|
|
|
32.8 |
% |
Resident chargebacks |
|
|
2,092 |
|
|
|
2,673 |
|
|
|
-21.8 |
% |
|
|
4,416 |
|
|
|
4,881 |
|
|
|
-9.5 |
% |
Total rental and other property revenue |
|
$ |
111,291 |
|
|
$ |
104,698 |
|
|
|
6.3 |
% |
|
$ |
201,145 |
|
|
$ |
189,261 |
|
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repairs , maintenance and turn costs |
|
$ |
10,891 |
|
|
$ |
9,920 |
|
|
|
9.8 |
% |
|
$ |
18,331 |
|
|
$ |
19,215 |
|
|
|
-4.6 |
% |
Real estate taxes, insurance and HOA costs |
|
|
21,462 |
|
|
|
19,807 |
|
|
|
8.4 |
% |
|
|
38,998 |
|
|
|
36,305 |
|
|
|
7.4 |
% |
Property management costs |
|
|
6,031 |
|
|
|
7,038 |
|
|
|
-14.3 |
% |
|
|
10,251 |
|
|
|
12,692 |
|
|
|
-19.2 |
% |
Bad debt expense (4) |
|
|
1,536 |
|
|
|
1,255 |
|
|
|
22.4 |
% |
|
|
3,049 |
|
|
|
2,200 |
|
|
|
38.6 |
% |
Other operating expenses |
|
|
3,757 |
|
|
|
3,978 |
|
|
|
-5.6 |
% |
|
|
6,313 |
|
|
|
6,839 |
|
|
|
-7.7 |
% |
Total property operating expenses |
|
$ |
43,677 |
|
|
$ |
41,998 |
|
|
|
4.0 |
% |
|
$ |
76,942 |
|
|
$ |
77,251 |
|
|
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
$ |
67,614 |
|
|
$ |
62,700 |
|
|
|
7.8 |
% |
|
$ |
124,203 |
|
|
$ |
112,010 |
|
|
|
10.9 |
% |
Net operating income margin |
|
|
60.8 |
% |
|
|
59.9 |
% |
|
|
|
|
|
|
61.7 |
% |
|
|
59.2 |
% |
|
|
|
|
Core net operating income margin |
|
|
62.8 |
% |
|
|
62.2 |
% |
|
|
|
|
|
|
64.1 |
% |
|
|
61.5 |
% |
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Colony Starwood Home’s Quarterly Same Store Homes and Full Year Same Store Homes property counts for the quarter-to-date and the year-to-date measurements are 24,657 and 22,647, respectively. (2) 2016 figures have been adjusted for Integration Costs, please see Income Statement Bridge slide. (3) 2015 represents proforma financials for the merged Company. (4) In Q4 14 CAH recorded a large, non-recurring, bad debt allowance during their transition away from third-party property managers. This event reduced the allowance necessary in Q1 and Q2 2015. |
26 |
Same Store Core Year-Over-Year Results
|
|
Quarterly Same Store (1) |
|
|
Full Year Same Store (1) |
|
||||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||||||||||
|
|
2016(2) |
|
|
2015(3) |
|
|
% Change |
|
|
2016(2) |
|
|
2015(3) |
|
|
% Change |
|
||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
|
$ |
106,264 |
|
|
$ |
100,011 |
|
|
|
6.3 |
% |
|
$ |
192,050 |
|
|
$ |
180,857 |
|
|
|
6.2 |
% |
Fee income |
|
|
2,935 |
|
|
|
2,014 |
|
|
|
45.8 |
% |
|
|
4,679 |
|
|
|
3,523 |
|
|
|
32.8 |
% |
Bad debt expense (4) |
|
|
(1,536 |
) |
|
|
(1,255 |
) |
|
|
22.4 |
% |
|
|
(3,049 |
) |
|
|
(2,200 |
) |
|
|
38.6 |
% |
Core rental revenue |
|
$ |
107,663 |
|
|
$ |
100,770 |
|
|
|
6.8 |
% |
|
$ |
193,680 |
|
|
$ |
182,180 |
|
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property operating expenses |
|
$ |
43,677 |
|
|
$ |
41,998 |
|
|
|
4.0 |
% |
|
$ |
76,942 |
|
|
$ |
77,251 |
|
|
|
-0.4 |
% |
Resident chargebacks |
|
|
(2,092 |
) |
|
|
(2,673 |
) |
|
|
-21.8 |
% |
|
|
(4,416 |
) |
|
|
(4,881 |
) |
|
|
-9.5 |
% |
Bad debt expense (4) |
|
|
(1,536 |
) |
|
|
(1,255 |
) |
|
|
22.4 |
% |
|
|
(3,049 |
) |
|
|
(2,200 |
) |
|
|
38.6 |
% |
Core property operating expenses |
|
$ |
40,049 |
|
|
$ |
38,070 |
|
|
|
5.2 |
% |
|
$ |
69,477 |
|
|
$ |
70,170 |
|
|
|
-1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Net Operating Income |
|
$ |
67,614 |
|
|
$ |
62,700 |
|
|
|
7.8 |
% |
|
$ |
124,203 |
|
|
$ |
112,010 |
|
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net operating income margin |
|
|
62.8 |
% |
|
|
62.2 |
% |
|
|
|
|
|
|
64.1 |
% |
|
|
61.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Colony Starwood Home’s Quarterly Same Store Homes and Full Year Same Store Homes property counts for the quarter-to-date and the year-to-date measurements are 24,657 and 22,647, respectively. (2) 2016 is adjusted for transitions costs, please see Income Statement Bridge slide. (3) 2015 represents proforma financials for the merged Company. (4) In Q4 14 CAH recorded a large, non-recurring, bad debt allowance during their transition away from third-party property managers. This event reduced the allowance necessary in Q1 and Q2 2015. |
27 |
Results by Market – Quarterly Same Store
Three months ended June 30, 2016
Dollars in thousands
Market: |
|
Same Store Homes |
|
|
% of Total Same Store Homes |
|
|
Revenues |
|
|
Expenses |
|
|
Net Operating Income |
|
|
% of Total Net Operating Income |
|
|
Core Operating Margin |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
5,259 |
|
|
|
21.3 |
% |
|
$ |
20,376 |
|
|
$ |
7,959 |
|
|
$ |
12,417 |
|
|
|
18.4 |
% |
|
|
63.8 |
% |
Southern California |
|
|
2,668 |
|
|
|
10.8 |
% |
|
|
15,904 |
|
|
|
5,034 |
|
|
|
10,870 |
|
|
|
16.1 |
% |
|
|
70.0 |
% |
Tampa |
|
|
2,615 |
|
|
|
10.6 |
% |
|
|
11,499 |
|
|
|
5,134 |
|
|
|
6,365 |
|
|
|
9.4 |
% |
|
|
57.1 |
% |
Houston |
|
|
2,380 |
|
|
|
9.7 |
% |
|
|
10,273 |
|
|
|
5,085 |
|
|
|
5,188 |
|
|
|
7.7 |
% |
|
|
51.9 |
% |
Miami |
|
|
2,479 |
|
|
|
10.1 |
% |
|
|
12,724 |
|
|
|
5,829 |
|
|
|
6,895 |
|
|
|
10.2 |
% |
|
|
55.7 |
% |
Orlando |
|
|
1,879 |
|
|
|
7.6 |
% |
|
|
7,476 |
|
|
|
3,210 |
|
|
|
4,266 |
|
|
|
6.3 |
% |
|
|
59.0 |
% |
Las Vegas |
|
|
1,678 |
|
|
|
6.8 |
% |
|
|
7,205 |
|
|
|
2,424 |
|
|
|
4,781 |
|
|
|
7.1 |
% |
|
|
68.2 |
% |
Dallas |
|
|
1,370 |
|
|
|
5.6 |
% |
|
|
6,294 |
|
|
|
2,609 |
|
|
|
3,685 |
|
|
|
5.4 |
% |
|
|
60.3 |
% |
Phoenix |
|
|
1,337 |
|
|
|
5.4 |
% |
|
|
4,718 |
|
|
|
1,578 |
|
|
|
3,140 |
|
|
|
4.6 |
% |
|
|
69.5 |
% |
Denver |
|
|
1,237 |
|
|
|
5.0 |
% |
|
|
6,257 |
|
|
|
1,759 |
|
|
|
4,498 |
|
|
|
6.7 |
% |
|
|
75.0 |
% |
Top 10 Markets |
|
|
22,902 |
|
|
|
92.9 |
% |
|
|
102,726 |
|
|
|
40,621 |
|
|
|
62,105 |
|
|
|
91.9 |
% |
|
|
62.5 |
% |
Northern California |
|
|
756 |
|
|
|
3.1 |
% |
|
|
4,013 |
|
|
|
1,224 |
|
|
|
2,789 |
|
|
|
4.1 |
% |
|
|
72.0 |
% |
Charlotte - Raleigh |
|
|
316 |
|
|
|
1.3 |
% |
|
|
1,455 |
|
|
|
453 |
|
|
|
1,002 |
|
|
|
1.5 |
% |
|
|
71.1 |
% |
Other Markets |
|
|
683 |
|
|
|
2.8 |
% |
|
|
3,097 |
|
|
|
1,379 |
|
|
|
1,718 |
|
|
|
2.5 |
% |
|
|
57.5 |
% |
Total |
|
|
24,657 |
|
|
|
100.0 |
% |
|
$ |
111,291 |
|
|
$ |
43,677 |
|
|
$ |
67,614 |
|
|
|
100.0 |
% |
|
|
62.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
|
28 |
Results by Market – Full Year Same Store
Six months ended June 30, 2016
Dollars in thousands
Market: |
|
Same Store Homes |
|
|
% of Total Same Store Homes |
|
|
Revenues |
|
|
Expenses |
|
|
Net Operating Income |
|
|
% of Total Net Operating Income |
|
|
Core Operating Margin |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
4,917 |
|
|
|
21.7 |
% |
|
$ |
37,599 |
|
|
$ |
13,990 |
|
|
$ |
23,609 |
|
|
|
19.0 |
% |
|
|
66.0 |
% |
Southern California |
|
|
2,594 |
|
|
|
11.5 |
% |
|
|
30,707 |
|
|
|
9,743 |
|
|
|
20,964 |
|
|
|
16.9 |
% |
|
|
70.3 |
% |
Tampa |
|
|
2,298 |
|
|
|
10.1 |
% |
|
|
19,861 |
|
|
|
8,728 |
|
|
|
11,133 |
|
|
|
9.0 |
% |
|
|
58.0 |
% |
Houston |
|
|
2,263 |
|
|
|
10.0 |
% |
|
|
19,380 |
|
|
|
9,482 |
|
|
|
9,898 |
|
|
|
8.0 |
% |
|
|
52.5 |
% |
Miami |
|
|
2,121 |
|
|
|
9.4 |
% |
|
|
21,197 |
|
|
|
9,850 |
|
|
|
11,347 |
|
|
|
9.1 |
% |
|
|
55.3 |
% |
Orlando |
|
|
1,760 |
|
|
|
7.8 |
% |
|
|
13,787 |
|
|
|
5,782 |
|
|
|
8,005 |
|
|
|
6.4 |
% |
|
|
60.5 |
% |
Las Vegas |
|
|
1,628 |
|
|
|
7.2 |
% |
|
|
13,797 |
|
|
|
4,209 |
|
|
|
9,588 |
|
|
|
7.7 |
% |
|
|
71.7 |
% |
Phoenix |
|
|
1,317 |
|
|
|
5.8 |
% |
|
|
9,189 |
|
|
|
2,858 |
|
|
|
6,331 |
|
|
|
5.1 |
% |
|
|
72.3 |
% |
Dallas |
|
|
1,171 |
|
|
|
5.2 |
% |
|
|
10,453 |
|
|
|
4,101 |
|
|
|
6,352 |
|
|
|
5.1 |
% |
|
|
62.8 |
% |
Denver |
|
|
1,087 |
|
|
|
4.8 |
% |
|
|
10,704 |
|
|
|
2,958 |
|
|
|
7,746 |
|
|
|
6.2 |
% |
|
|
75.7 |
% |
Top 10 Markets |
|
|
21,156 |
|
|
|
93.4 |
% |
|
|
186,674 |
|
|
|
71,701 |
|
|
|
114,973 |
|
|
|
92.6 |
% |
|
|
63.9 |
% |
Northern California |
|
|
733 |
|
|
|
3.2 |
% |
|
|
7,722 |
|
|
|
2,375 |
|
|
|
5,347 |
|
|
|
4.3 |
% |
|
|
72.5 |
% |
Charlotte - Raleigh |
|
|
161 |
|
|
|
0.7 |
% |
|
|
1,453 |
|
|
|
448 |
|
|
|
1,005 |
|
|
|
0.8 |
% |
|
|
72.1 |
% |
Other Markets |
|
|
597 |
|
|
|
2.6 |
% |
|
|
5,296 |
|
|
|
2,418 |
|
|
|
2,878 |
|
|
|
2.3 |
% |
|
|
57.0 |
% |
Total |
|
|
22,647 |
|
|
|
100.0 |
% |
|
$ |
201,145 |
|
|
$ |
76,942 |
|
|
$ |
124,203 |
|
|
|
100.0 |
% |
|
|
64.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
|
29 |
Lease Outcomes – Quarterly Same Store
Base on Quarterly Same Store property count of 24,657 homes
|
|
Expiration Outcome (1)(2) |
|
|
Turnover (5) |
|
||||||||||||||||||||||||||
Market: |
|
Expiration Count |
|
|
Renewed (3) |
|
|
Retained (4) |
|
|
Renewal Rate |
|
|
Retention Rate |
|
|
QTD Turnover Rate (6) |
|
|
YTD Turnover Rate |
|
|
YTD Annualized Turnover Rate (7) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
1,144 |
|
|
|
732 |
|
|
|
850 |
|
|
|
64.0 |
% |
|
|
74.3 |
% |
|
|
10.5 |
% |
|
|
16.9 |
% |
|
|
33.9 |
% |
Southern California |
|
|
567 |
|
|
|
407 |
|
|
|
455 |
|
|
|
71.8 |
% |
|
|
80.2 |
% |
|
|
7.5 |
% |
|
|
13.4 |
% |
|
|
26.8 |
% |
Houston |
|
|
552 |
|
|
|
293 |
|
|
|
399 |
|
|
|
53.1 |
% |
|
|
72.3 |
% |
|
|
11.9 |
% |
|
|
18.5 |
% |
|
|
37.0 |
% |
Tampa |
|
|
502 |
|
|
|
302 |
|
|
|
352 |
|
|
|
60.2 |
% |
|
|
70.1 |
% |
|
|
9.9 |
% |
|
|
18.4 |
% |
|
|
36.9 |
% |
Las Vegas |
|
|
413 |
|
|
|
247 |
|
|
|
294 |
|
|
|
59.8 |
% |
|
|
71.2 |
% |
|
|
12.2 |
% |
|
|
19.5 |
% |
|
|
39.0 |
% |
Miami |
|
|
398 |
|
|
|
275 |
|
|
|
312 |
|
|
|
69.1 |
% |
|
|
78.4 |
% |
|
|
7.6 |
% |
|
|
14.2 |
% |
|
|
28.3 |
% |
Orlando |
|
|
379 |
|
|
|
252 |
|
|
|
284 |
|
|
|
66.5 |
% |
|
|
74.9 |
% |
|
|
8.8 |
% |
|
|
16.9 |
% |
|
|
33.7 |
% |
Phoenix |
|
|
297 |
|
|
|
189 |
|
|
|
215 |
|
|
|
63.6 |
% |
|
|
72.4 |
% |
|
|
9.7 |
% |
|
|
17.1 |
% |
|
|
34.3 |
% |
Dallas |
|
|
265 |
|
|
|
176 |
|
|
|
198 |
|
|
|
66.4 |
% |
|
|
74.7 |
% |
|
|
10.1 |
% |
|
|
16.6 |
% |
|
|
33.3 |
% |
Denver |
|
|
276 |
|
|
|
180 |
|
|
|
203 |
|
|
|
65.2 |
% |
|
|
73.6 |
% |
|
|
8.9 |
% |
|
|
14.6 |
% |
|
|
29.3 |
% |
Top 10 Markets |
|
|
4,793 |
|
|
|
3,053 |
|
|
|
3,562 |
|
|
|
63.7 |
% |
|
|
74.3 |
% |
|
|
9.7 |
% |
|
|
16.6 |
% |
|
|
33.2 |
% |
Northern California |
|
|
147 |
|
|
|
107 |
|
|
|
120 |
|
|
|
72.8 |
% |
|
|
81.6 |
% |
|
|
6.6 |
% |
|
|
13.6 |
% |
|
|
27.2 |
% |
Charlotte - Raleigh |
|
|
42 |
|
|
|
26 |
|
|
|
31 |
|
|
|
61.9 |
% |
|
|
73.8 |
% |
|
|
8.9 |
% |
|
|
16.5 |
% |
|
|
32.9 |
% |
Other Markets |
|
|
111 |
|
|
|
69 |
|
|
|
85 |
|
|
|
62.2 |
% |
|
|
76.6 |
% |
|
|
6.1 |
% |
|
|
12.7 |
% |
|
|
25.5 |
% |
Total |
|
|
5,093 |
|
|
|
3,255 |
|
|
|
3,798 |
|
|
|
63.9 |
% |
|
|
74.6 |
% |
|
|
9.5 |
% |
|
|
16.4 |
% |
|
|
32.8 |
% |
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Colony Starwood Home’s same store property counts for the quarter-to-date and the year-to-date measurements are 24,657 and 22,647, respectively. (2) Represents the number of leases that expired within the quarter, less early terminations. (3) Lease expirations where the lease was renewed (excludes month-to-month leases). (4) Lease expirations where the resident did not “move out”. (5) Population limited to assets that realized resident turnover within the subject period, including out of period lease expirations where the lease was terminated early and month-to-month leases. (6) The number of assets that become unoccupied during the subject period as a percentage of homes with an initial move-in ready status. (7) The number of assets that become unoccupied during the subject period as an annualized percentage of homes with an initial move-in ready status. |
30 |
Lease Outcomes – Full Year Same Store
As of June 30, 2016
Base on Full Year Same Store property count of 22,647 homes
|
|
Expiration Outcome (1)(2) |
|
|
Turnover (5) |
|
||||||||||||||||||||||||||
Market: |
|
Expiration Count |
|
|
Renewed (3) |
|
|
Retained (4) |
|
|
Renewal Rate |
|
|
Retention Rate |
|
|
QTD Turnover Rate (6) |
|
|
YTD Turnover Rate |
|
|
YTD Annualized Turnover Rate (7) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
1,832 |
|
|
|
1,193 |
|
|
|
1,406 |
|
|
|
65.1 |
% |
|
|
76.7 |
% |
|
|
10.7 |
% |
|
|
17.1 |
% |
|
|
34.2 |
% |
Southern California |
|
|
996 |
|
|
|
722 |
|
|
|
807 |
|
|
|
72.5 |
% |
|
|
81.0 |
% |
|
|
7.5 |
% |
|
|
13.5 |
% |
|
|
26.9 |
% |
Tampa |
|
|
878 |
|
|
|
532 |
|
|
|
620 |
|
|
|
60.6 |
% |
|
|
70.6 |
% |
|
|
10.4 |
% |
|
|
19.1 |
% |
|
|
38.3 |
% |
Houston |
|
|
850 |
|
|
|
470 |
|
|
|
618 |
|
|
|
55.3 |
% |
|
|
72.7 |
% |
|
|
12.2 |
% |
|
|
18.7 |
% |
|
|
37.5 |
% |
Orlando |
|
|
729 |
|
|
|
478 |
|
|
|
533 |
|
|
|
65.6 |
% |
|
|
73.1 |
% |
|
|
9.1 |
% |
|
|
17.3 |
% |
|
|
34.7 |
% |
Miami |
|
|
699 |
|
|
|
480 |
|
|
|
547 |
|
|
|
68.7 |
% |
|
|
78.3 |
% |
|
|
8.2 |
% |
|
|
15.3 |
% |
|
|
30.6 |
% |
Las Vegas |
|
|
664 |
|
|
|
396 |
|
|
|
465 |
|
|
|
59.6 |
% |
|
|
70.0 |
% |
|
|
12.2 |
% |
|
|
19.5 |
% |
|
|
39.1 |
% |
Phoenix |
|
|
529 |
|
|
|
340 |
|
|
|
387 |
|
|
|
64.3 |
% |
|
|
73.2 |
% |
|
|
9.8 |
% |
|
|
17.3 |
% |
|
|
34.6 |
% |
Denver |
|
|
380 |
|
|
|
241 |
|
|
|
280 |
|
|
|
63.4 |
% |
|
|
73.7 |
% |
|
|
9.0 |
% |
|
|
14.5 |
% |
|
|
29.1 |
% |
Dallas |
|
|
374 |
|
|
|
252 |
|
|
|
284 |
|
|
|
67.4 |
% |
|
|
75.9 |
% |
|
|
10.4 |
% |
|
|
16.7 |
% |
|
|
33.3 |
% |
Top 10 Markets |
|
|
7,931 |
|
|
|
5,104 |
|
|
|
5,947 |
|
|
|
64.4 |
% |
|
|
75.0 |
% |
|
|
10.0 |
% |
|
|
16.9 |
% |
|
|
33.9 |
% |
Northern California |
|
|
275 |
|
|
|
197 |
|
|
|
225 |
|
|
|
71.6 |
% |
|
|
81.8 |
% |
|
|
6.7 |
% |
|
|
13.8 |
% |
|
|
27.6 |
% |
Charlotte - Raleigh |
|
|
29 |
|
|
|
14 |
|
|
|
18 |
|
|
|
48.3 |
% |
|
|
62.1 |
% |
|
|
10.6 |
% |
|
|
18.6 |
% |
|
|
37.3 |
% |
Other Markets |
|
|
199 |
|
|
|
125 |
|
|
|
156 |
|
|
|
62.8 |
% |
|
|
78.4 |
% |
|
|
6.5 |
% |
|
|
13.2 |
% |
|
|
26.5 |
% |
Total |
|
|
8,434 |
|
|
|
5,440 |
|
|
|
6,346 |
|
|
|
64.5 |
% |
|
|
75.2 |
% |
|
|
9.8 |
% |
|
|
16.7 |
% |
|
|
33.5 |
% |
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Colony Starwood Home’s same store property counts for the quarter-to-date and the year-to-date measurements are 24,657 and 22,647, respectively. (2) Represents the number of leases that expired within the quarter, less early terminations. (3) Lease expirations where the lease was renewed (excludes month-to-month leases). (4) Lease expirations where the resident did not “move out”. (5) Population limited to assets that realized resident turnover within the subject period, including out of period lease expirations where the lease was terminated early and month-to-month leases. (6) The number of assets that become unoccupied during the subject period as a percentage of homes with an initial move-in ready status. (7) The number of assets that become unoccupied during the subject period as an annualized percentage of homes with an initial move-in ready status. |
31 |
Rent Growth – Quarterly Same Store
Quarter-to-Date as of June 30, 2016
Base on Quarterly Same Store property count of 24,657 homes
|
|
Renewals |
|
|
Replacement Rent |
|
|
|
|
|
|
Escalations on Multi-Year Leases |
|
Total Rent Growth |
|
|||||||||||||||||||
Market: |
|
Total Leases |
|
|
Renewal Rent Growth |
|
|
Total Leases |
|
|
Replacement Rent Growth |
|
|
Blended Rent Growth |
|
|
Total Leases |
|
|
Average Rent Change (1) |
|
Total Leases |
|
|
Average Rent Change (2) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
766 |
|
|
|
5.2 |
% |
|
|
489 |
|
|
|
6.0 |
% |
|
|
5.5 |
% |
|
|
83 |
|
|
3.0% |
|
|
1,338 |
|
|
|
5.3 |
% |
Southern California |
|
|
425 |
|
|
|
6.1 |
% |
|
|
193 |
|
|
|
7.9 |
% |
|
|
6.7 |
% |
|
|
30 |
|
|
3.0% |
|
|
648 |
|
|
|
6.5 |
% |
Houston |
|
|
337 |
|
|
|
4.1 |
% |
|
|
222 |
|
|
|
2.8 |
% |
|
|
3.6 |
% |
|
|
95 |
|
|
3.0% |
|
|
654 |
|
|
|
3.5 |
% |
Tampa |
|
|
312 |
|
|
|
4.8 |
% |
|
|
274 |
|
|
|
4.5 |
% |
|
|
4.7 |
% |
|
|
71 |
|
|
3.0% |
|
|
657 |
|
|
|
4.5 |
% |
Orlando |
|
|
267 |
|
|
|
4.8 |
% |
|
|
183 |
|
|
|
5.0 |
% |
|
|
4.9 |
% |
|
|
18 |
|
|
3.0% |
|
|
468 |
|
|
|
4.8 |
% |
Las Vegas |
|
|
259 |
|
|
|
3.8 |
% |
|
|
190 |
|
|
|
4.2 |
% |
|
|
3.9 |
% |
|
|
- |
|
|
- |
|
|
449 |
|
|
|
3.9 |
% |
Miami |
|
|
235 |
|
|
|
4.3 |
% |
|
|
175 |
|
|
|
5.0 |
% |
|
|
4.6 |
% |
|
|
137 |
|
|
3.0% |
|
|
547 |
|
|
|
4.2 |
% |
Phoenix |
|
|
196 |
|
|
|
5.6 |
% |
|
|
114 |
|
|
|
12.0 |
% |
|
|
8.0 |
% |
|
|
17 |
|
|
3.0% |
|
|
327 |
|
|
|
7.7 |
% |
Denver |
|
|
183 |
|
|
|
9.2 |
% |
|
|
105 |
|
|
|
10.6 |
% |
|
|
9.7 |
% |
|
|
23 |
|
|
3.0% |
|
|
311 |
|
|
|
9.2 |
% |
Dallas |
|
|
179 |
|
|
|
4.6 |
% |
|
|
124 |
|
|
|
5.6 |
% |
|
|
5.0 |
% |
|
|
40 |
|
|
3.0% |
|
|
343 |
|
|
|
4.8 |
% |
Top 10 Markets |
|
|
3,159 |
|
|
|
5.2 |
% |
|
|
2,069 |
|
|
|
5.8 |
% |
|
|
5.5 |
% |
|
|
514 |
|
|
3.0% |
|
|
5,742 |
|
|
|
5.3 |
% |
Northern California |
|
|
124 |
|
|
|
6.9 |
% |
|
|
52 |
|
|
|
13.4 |
% |
|
|
8.9 |
% |
|
|
26 |
|
|
3.0% |
|
|
202 |
|
|
|
8.1 |
% |
Charlotte - Raleigh |
|
|
25 |
|
|
|
3.3 |
% |
|
|
21 |
|
|
|
6.7 |
% |
|
|
4.8 |
% |
|
|
- |
|
|
- |
|
|
46 |
|
|
|
4.8 |
% |
Other Markets |
|
|
77 |
|
|
|
4.2 |
% |
|
|
63 |
|
|
|
1.8 |
% |
|
|
3.1 |
% |
|
|
25 |
|
|
3.0% |
|
|
165 |
|
|
|
3.1 |
% |
Total |
|
|
3,385 |
|
|
|
5.3 |
% |
|
|
2,205 |
|
|
|
5.9 |
% |
|
|
5.5 |
% |
|
|
565 |
|
|
3.0% |
|
|
6,155 |
|
|
|
5.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Represents average rent growth on the population of escalating multi-year leases taking effect for the three months ended June, 30, 2016, defined as average of the percentage change in rental rate for all multi-year leases in the period. (2) Represents weighted average rent growth on all replacement, renewals and escalating multi-year leases for the three months ended June, 30, 2016. |
32 |
Rent Growth – Full Year Same Store
Quarter-to-Date as of June 30, 2016
Base on Full Year Same Store property count of 22,647 homes
|
|
Renewals |
|
|
Replacement Rent |
|
|
|
|
|
|
Escalations on Multi-Year Leases |
|
Total Rent Growth |
|
|||||||||||||||||||
Market: |
|
Total Leases |
|
|
Renewal Rent Growth |
|
|
Total Leases |
|
|
Replacement Rent Growth |
|
|
Blended Rent Growth |
|
|
Total Leases |
|
|
Average Rent Change (1) |
|
Total Leases |
|
|
Average Rent Change (2) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
756 |
|
|
|
5.2 |
% |
|
|
461 |
|
|
|
6.2 |
% |
|
|
5.6 |
% |
|
|
83 |
|
|
3.0% |
|
|
1,300 |
|
|
|
5.4 |
% |
Southern California |
|
|
423 |
|
|
|
6.2 |
% |
|
|
188 |
|
|
|
8.2 |
% |
|
|
6.8 |
% |
|
|
30 |
|
|
3.0% |
|
|
641 |
|
|
|
6.6 |
% |
Houston |
|
|
337 |
|
|
|
4.1 |
% |
|
|
210 |
|
|
|
2.9 |
% |
|
|
3.6 |
% |
|
|
94 |
|
|
3.0% |
|
|
641 |
|
|
|
3.6 |
% |
Tampa |
|
|
296 |
|
|
|
4.9 |
% |
|
|
254 |
|
|
|
4.7 |
% |
|
|
4.8 |
% |
|
|
70 |
|
|
3.0% |
|
|
620 |
|
|
|
4.6 |
% |
Orlando |
|
|
263 |
|
|
|
4.8 |
% |
|
|
174 |
|
|
|
5.1 |
% |
|
|
4.9 |
% |
|
|
18 |
|
|
3.0% |
|
|
455 |
|
|
|
4.8 |
% |
Las Vegas |
|
|
255 |
|
|
|
3.8 |
% |
|
|
180 |
|
|
|
4.2 |
% |
|
|
4.0 |
% |
|
|
- |
|
|
- |
|
|
435 |
|
|
|
4.0 |
% |
Miami |
|
|
232 |
|
|
|
4.4 |
% |
|
|
155 |
|
|
|
5.3 |
% |
|
|
4.8 |
% |
|
|
133 |
|
|
3.0% |
|
|
520 |
|
|
|
4.3 |
% |
Phoenix |
|
|
195 |
|
|
|
5.6 |
% |
|
|
114 |
|
|
|
12.0 |
% |
|
|
8.0 |
% |
|
|
17 |
|
|
3.0% |
|
|
326 |
|
|
|
7.7 |
% |
Denver |
|
|
176 |
|
|
|
9.2 |
% |
|
|
87 |
|
|
|
11.6 |
% |
|
|
10.0 |
% |
|
|
22 |
|
|
3.0% |
|
|
285 |
|
|
|
9.4 |
% |
Dallas |
|
|
173 |
|
|
|
4.7 |
% |
|
|
105 |
|
|
|
6.3 |
% |
|
|
5.3 |
% |
|
|
37 |
|
|
3.0% |
|
|
315 |
|
|
|
5.0 |
% |
Top 10 Markets |
|
|
3,106 |
|
|
|
5.3 |
% |
|
|
1,928 |
|
|
|
6.1 |
% |
|
|
5.6 |
% |
|
|
504 |
|
|
3.0% |
|
|
5,538 |
|
|
|
5.3 |
% |
Northern California |
|
|
124 |
|
|
|
6.9 |
% |
|
|
51 |
|
|
|
13.4 |
% |
|
|
8.9 |
% |
|
|
26 |
|
|
3.0% |
|
|
201 |
|
|
|
8.0 |
% |
Charlotte - Raleigh |
|
|
12 |
|
|
|
2.3 |
% |
|
|
11 |
|
|
|
6.1 |
% |
|
|
4.1 |
% |
|
|
- |
|
|
- |
|
|
23 |
|
|
|
4.1 |
% |
Other Markets |
|
|
75 |
|
|
|
4.2 |
% |
|
|
60 |
|
|
|
1.7 |
% |
|
|
3.1 |
% |
|
|
24 |
|
|
3.0% |
|
|
159 |
|
|
|
3.1 |
% |
Total |
|
|
3,317 |
|
|
|
5.3 |
% |
|
|
2,050 |
|
|
|
6.1 |
% |
|
|
5.6 |
% |
|
|
554 |
|
|
3.0% |
|
|
5,921 |
|
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Represents average rent growth on the population of escalating multi-year leases taking effect for the three months ended June, 30, 2016, defined as average of the percentage change in rental rate for all multi-year leases in the period. (2) Represents weighted average rent growth on all replacement, renewals and escalating multi-year leases for the three months ended June, 30, 2016. |
33 |
Rent Growth – Full Year Same Store
Year-to-Date as of June 30, 2016
Base on Full Year Same Store property count of 22,647 homes
|
|
Renewals |
|
|
Replacement Rent |
|
|
|
|
|
|
Escalations on Multi-Year Leases |
|
Total Rent Growth |
|
|||||||||||||||||||
Market: |
|
Total Leases |
|
|
Renewal Rent Growth |
|
|
Total Leases |
|
|
Replacement Rent Growth |
|
|
Blended Rent Growth |
|
|
Total Leases |
|
|
Average Rent Change (1) |
|
Total Leases |
|
|
Average Rent Change (2) |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
1,262 |
|
|
|
5.1 |
% |
|
|
824 |
|
|
|
5.0 |
% |
|
|
5.0 |
% |
|
|
201 |
|
|
3.0% |
|
|
2,287 |
|
|
|
4.8 |
% |
Southern California |
|
|
789 |
|
|
|
5.6 |
% |
|
|
361 |
|
|
|
5.7 |
% |
|
|
5.7 |
% |
|
|
53 |
|
|
3.0% |
|
|
1,203 |
|
|
|
5.5 |
% |
Tampa |
|
|
586 |
|
|
|
4.3 |
% |
|
|
411 |
|
|
|
3.7 |
% |
|
|
4.0 |
% |
|
|
119 |
|
|
3.0% |
|
|
1,116 |
|
|
|
3.9 |
% |
Orlando |
|
|
530 |
|
|
|
4.8 |
% |
|
|
339 |
|
|
|
3.9 |
% |
|
|
4.5 |
% |
|
|
31 |
|
|
3.0% |
|
|
900 |
|
|
|
4.4 |
% |
Houston |
|
|
521 |
|
|
|
4.1 |
% |
|
|
402 |
|
|
|
0.8 |
% |
|
|
2.6 |
% |
|
|
137 |
|
|
3.0% |
|
|
1,060 |
|
|
|
2.7 |
% |
Miami |
|
|
461 |
|
|
|
4.1 |
% |
|
|
300 |
|
|
|
4.0 |
% |
|
|
4.1 |
% |
|
|
241 |
|
|
3.0% |
|
|
1,002 |
|
|
|
3.8 |
% |
Las Vegas |
|
|
415 |
|
|
|
4.0 |
% |
|
|
306 |
|
|
|
2.7 |
% |
|
|
3.5 |
% |
|
|
2 |
|
|
3.0% |
|
|
723 |
|
|
|
3.5 |
% |
Phoenix |
|
|
364 |
|
|
|
5.7 |
% |
|
|
216 |
|
|
|
10.5 |
% |
|
|
7.5 |
% |
|
|
20 |
|
|
3.0% |
|
|
600 |
|
|
|
7.3 |
% |
Dallas |
|
|
269 |
|
|
|
4.5 |
% |
|
|
186 |
|
|
|
4.8 |
% |
|
|
4.6 |
% |
|
|
60 |
|
|
3.0% |
|
|
515 |
|
|
|
4.4 |
% |
Denver |
|
|
249 |
|
|
|
8.8 |
% |
|
|
158 |
|
|
|
8.6 |
% |
|
|
8.7 |
% |
|
|
32 |
|
|
3.0% |
|
|
439 |
|
|
|
8.3 |
% |
Top 10 Markets |
|
|
5,446 |
|
|
|
5.0 |
% |
|
|
3,503 |
|
|
|
4.5 |
% |
|
|
4.8 |
% |
|
|
896 |
|
|
3.0% |
|
|
9,845 |
|
|
|
4.6 |
% |
Northern California |
|
|
217 |
|
|
|
6.0 |
% |
|
|
98 |
|
|
|
11.1 |
% |
|
|
7.6 |
% |
|
|
41 |
|
|
3.0% |
|
|
356 |
|
|
|
7.1 |
% |
Charlotte - Raleigh |
|
|
17 |
|
|
|
2.4 |
% |
|
|
24 |
|
|
|
4.7 |
% |
|
|
3.7 |
% |
|
|
- |
|
|
- |
|
|
41 |
|
|
|
3.7 |
% |
Other Markets |
|
|
131 |
|
|
|
4.0 |
% |
|
|
112 |
|
|
|
0.5 |
% |
|
|
2.3 |
% |
|
|
38 |
|
|
3.0% |
|
|
281 |
|
|
|
2.4 |
% |
Total |
|
|
5,811 |
|
|
|
5.0 |
% |
|
|
3,737 |
|
|
|
4.6 |
% |
|
|
4.8 |
% |
|
|
975 |
|
|
3.0% |
|
|
10,523 |
|
|
|
4.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Represents average rent growth on the population of escalating multi-year leases taking effect for the three months ended June, 30, 2016, defined as average of the percentage change in rental rate for all multi-year leases in the period. (2) Represents weighted average rent growth on all replacement, renewals and escalating multi-year leases for the three months ended June, 30, 2016. |
34 |
Cost to Maintain a Home
Dollars in thousands, except per home amounts
|
|
Quarterly Same Store (1) |
|
|
Full Year Same Store (1) |
|
||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
Category |
|
Total Cost |
|
|
Cost per Home |
|
|
Total Cost |
|
|
Cost per Home |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repairs, maintenance and turnover expenses (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repairs and maintenance |
|
$ |
5,282 |
|
|
$ |
214 |
|
|
$ |
8,893 |
|
|
$ |
393 |
|
Turnover-related costs |
|
|
3,182 |
|
|
|
129 |
|
|
|
5,605 |
|
|
|
247 |
|
Landscaping and pool services |
|
|
1,003 |
|
|
|
41 |
|
|
|
1,679 |
|
|
|
74 |
|
Total repairs, maintenance and turnover expenses |
|
$ |
9,467 |
|
|
$ |
384 |
|
|
$ |
16,177 |
|
|
$ |
714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring capital expenditures (3)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital replacements |
|
$ |
7,539 |
|
|
$ |
306 |
|
|
$ |
11,635 |
|
|
$ |
514 |
|
Turnover-related capital costs |
|
|
3,209 |
|
|
|
130 |
|
|
|
5,792 |
|
|
|
256 |
|
Total recurring capital expenditures |
|
$ |
10,748 |
|
|
$ |
436 |
|
|
$ |
17,427 |
|
|
$ |
770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total repairs and maintenance and recurring capital expenditures |
|
$ |
20,215 |
|
|
$ |
820 |
|
|
$ |
33,604 |
|
|
$ |
1,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Home Count |
|
|
|
|
|
|
24,657 |
|
|
|
|
|
|
|
22,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue enhancing capital expenditures (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue enhancing capital expenditures |
|
$ |
647 |
|
|
$ |
26 |
|
|
$ |
1,428 |
|
|
$ |
63 |
|
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) Colony Starwood Home’s Quarterly Same Store and Full Year Same Store property counts for the quarter-to-date and the year-to-date measurements are 24,657 and 22,647, respectively. (2) Turnover costs are presented net of total billed resident chargebacks at move-out; some chargebacks may present collection risk if tenant security deposits are insufficient. (3) Excludes initial renovation and re-development expenditures. (4) General replacements and expenditures necessary to preserve and maintain the value and functionality of the home and its systems. (5) Includes capital improvements and additions intended to increase the revenue potential for a given property, which we track separately from recurring capital expenditure. |
35 |
VII. Guidance
|
36 |
2016 Mid-Year Guidance Update
Colony Starwood Homes has tightened its 2016 full year guidance
2016 Full-Year Guidance(1) |
|
|||
|
as of March 31, 2016 |
Updated Guidance |
|
|
Core FFO per share |
$1.55 - $1.65 |
$1.60 - $1.65 |
|
|
Stabilized Occupancy |
94% - 95% |
|
95% |
|
Blended Rent Growth |
4% - 5% |
4.5% - 5% |
|
|
Core NOI margin (Stabilized) |
62% - 64% |
62% - 64% |
|
|
· |
Core FFO guidance excludes NPL results as Colony Starwood Homes winds-down the business |
|
· |
As of June 30, 2016, management expected to generate an additional $150MM - $200MM of net proceeds from NPL loan pool sales and REO sales through year end 2017 (2) |
Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of June 30, 2016 unless otherwise indicated.
(1) This outlook is based on a number of assumptions, many of which are outside of the Colony Starwood Homes’ control, and all of which are subject to change. This outlook reflects Colony Starwood Homes’ expectations on (a) existing investments and (b) yield on incremental investments inclusive of Colony Starwood Homes’ existing pipeline. All guidance is based on current expectations of future economic conditions and the judgment of the Colony Starwood Homes’ management team. (2) Net Proceeds after associated debt pay down and carrying costs, inclusive of July RPL proceeds of $45.9 million. |
37 |
Appendix
|
38 |
Appendix A: Definitions
Annualized Turnover Rate. Is calculated by dividing a) the number of homes that become unoccupied during a period of time by b) the number of homes that had completed initial renovation/rehabilitation and were leasable during the specified period, expressed as an annualized percentage by multiplying the period of measurement to reach a 12 month period (e.g., multiplying a three month turnover measurement by four). Management believes this operational measure is useful in understanding resident satisfaction, pricing effectiveness and assessing associated property repairs and maintenance expenses.
Average Acquisition Cost per Home. Is calculated by dividing a) the total acquisition cost for each home in an identified population (such acquisition costs including purchase price and closing costs, but excluding renovation/rehabilitation costs incurred prior to leasing) by b) the number of homes in the respective population. Total acquisition cost for assets owned by SWAY prior to the Merger includes the purchase accounting fair market value step-up applied to those assets as of the close of Merger on January 5, 2016.
Average Investment. Is calculated by dividing the sum of a) the total acquisition cost for each home in an identified population b) all property related capitalized expenditures incurred in the renovation/rehabilitation of a property prior to leasing by c) the number of homes in the respective population. Total acquisition cost for assets owned by SWAY prior to the Merger includes the purchase accounting fair market value step-up applied to those assets as of the close of Merger on January 5, 2016.
Average Monthly Rent per Occupied Home. Is calculated by dividing a) the aggregate monthly contractual cash rent (excluding rent concessions and incentives) for an identified population of occupied rental units by b) the number of rental units in the identified population. To date, rent concessions and incentives have been utilized on a limited basis and have not had a significant impact on the CSH portfolio’s average monthly rent.
Blended Rent Growth. Represents the weighted average rent growth on all new leases (replacement leases) and renewals during a measured period, and is calculated by dividing a) the aggregate contractual first month rent on all new leases and lease renewals executed during the applicable period for an identified population of occupied rental units by b) the aggregate contractual last month rent for such identified population of rental units before renewal or new lease. This calculation does not include lease escalations / step-ups for multi-year leases.
Core FFO. Core FFO is a non-GAAP financial measure of operating performance that we believe assists investors in assessing the results of CSH’s single family rental business, which is our core operating business. Core FFO adjusts NAREIT FFO (defined below) to eliminate the impact of certain items that CSH believes are not indicative of our core operating performance, including the results of the NPL business, which we intend to exit, as well as certain non-cash items so that period-over-period measurements are more consistent. Our Core FFO begins with NAREIT FFO and is adjusted for revenues and expenses directly related to our NPL business, for amortization of deferred financing costs and debt premium discounts, share-based compensation, loss on derivative financial instruments, amortization of derivative financial instruments, non-cash interest expense, merger and transaction-related expenses. Core FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not necessarily indicative of cash available to fund cash needs and should not be considered as an alternative to net income (determined in accordance with GAAP) as a performance measure.
|
39 |
Appendix A: Definitions
Core Net Operating Income or Core NOI. CSH calculates Core NOI by subtracting Core Property Operating Costs from Core Rental Revenue, as defined, which eliminates (a) revenues and expenses that CSH believes are not directly related to the operating performance of the homes themselves and (b) GAAP presentations of resident chargeback fees and bad debt expense to provide a clearer presentation of rental and fee income streams as well as associated expenses. Please refer to the definition of NOI below for an explanation of how that measure is calculated separate from Core NOI. Core NOI is a non-GAAP measure of operating performance that CSH believes assists investors in assessing the performance of our portfolio of single family homes, which is our core operating business. Please see Appendix B for a reconciliation of net income (loss) to Core NOI.
The Core NOI measures included in this presentation should not be considered alternatives to net loss or net cash flows from operating activities, as determined in accordance with GAAP, as indications of CSH’s performance or as measures of liquidity. Although CSH uses these non-GAAP measures for comparability in assessing their 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 are comparable with that of other REITs.
Core Property Operating Expenses. Is calculated by adjusting operating costs for the properties in the relevant sample by eliminating the impact of resident chargebacks bad debt expense.
Core Rental Revenue. Is calculated by rental and fee income for the properties in the relevant sample adjusted to eliminate the impact of bad debt expense.
Development Homes. Homes that a) are awaiting initial rehabilitation, b) are currently undergoing initial rehabilitation, or c) have completed initial rehabilitation but have not yet been marketed for initial occupancy.
Full Year Same Store. Homes that met the definition of Same Store Homes as of January 1, 2016. As of June 30, 2016 there were 22,647 homes.
Integration Costs. Costs and charges incurred during the integration of the Starwood Waypoint Residential Trust and Colony American Homes operations in the three and six months ended June 30, 2016 that are not reflective of our core operating performance and that we do not expect to incur subsequent to the completion of the Merger integration, but which do not qualify for Merger and transaction related expenses under GAAP. The majority of Integration Costs consist of base salaries, benefits, and payroll taxes of employees separated or scheduled for separation as a result of the Merger. See Appendix B for a summary of Integration Costs through the three and six months ended June 30, 2016.
Merger and Transaction Related Expenses. Direct costs incurred as a result of the Merger closing or costs required to ensure the Merger was completed successfully. These costs include legal fees, advisory services (accounting, tax, and entity filings), success fees, employee retention plans and severance costs, and property tax / transfer costs. See Appendix B for a summary of costs for the three and six months ended June 30, 2016.
|
40 |
Appendix A: Definitions
NAREIT FFO. Funds from operations is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income or loss (in accordance with GAAP) excluding gains or losses from sale of previously depreciated real estate assets, plus depreciation and amortization of real estate assets and adjustments for unconsolidated partnerships and joint ventures. Consistent with real estate industry and investment community preferences, we use FFO as a supplemental measure of operating performance for a REIT. We consider FFO useful to investors as a complement to GAAP measures because it facilitates an understanding of the operating performance of the Company’s properties. FFO does not give effect to real estate depreciation and amortization since these amounts are computed to allocate the cost of a property over its useful life. Since values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, the Company believes that FFO provides investors with a clearer view of the Company’s operating performance.
Net Operating Income or NOI. CSH defines NOI as rental and other property revenues less property operating expenses. CSH has presented NOI for Same Store Homes as CSH believes this NOI measure to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it reflects the operating performance of our homes without allocation of corporate level overhead or general and administrative costs and reflects the operations of our business. Refer to the table below for a reconciliation of net loss attributable to common shareholders to NOI. Please refer to the definition of Core NOI above for an explanation of how that measure is calculated separate from NOI, and see Appendix B for a reconciliation of net income (loss) to NOI.
These NOI measures included in this presentation should not be considered alternatives to net loss or net cash flows from operating activities, as determined in accordance with GAAP, as indications of CSH’s performance or as measures of liquidity. Although CSH uses these non-GAAP measures for comparability in assessing their performance against other REITs, not all REITs compute the same non-GAAP measures. Accordingly, there can be no assurance that CSH’s basis for computing these non-GAAP measures is comparable with that of other REITs.
Non-Owned, Managed Homes. Colony Starwood Homes currently provides its property and asset management services to third parties and/or joint venture partners as a fee service. The non-owned properties are all managed within the same platform from which Colony Starwood Homes services its Owned homes.
Occupancy %. Represents the percentage of an identified rental unit population that is occupied as of the measurement period and is calculated by dividing a) the number of occupied units as of the last day of the measurement period by b) the number of rental units in the identified population of rental units (Same Store, Owned Homes, etc.).
Other Homes. Includes 434 Owned Homes as of June 30, 2016 that were not intended to be held for the long-term and not in service. The 434 Other Homes excludes the 675 REO homes held as of June 30, 2016.
Owned Homes. Represents wholly-owned single family rental properties, and is measured by the number of total rental units. This takes into account investments in multi-unit properties which Management believes provides a more meaningful measure to investors. Owned Homes excludes the 675 REO homes held as of June 30, 2016.
Quarterly Same Store. Homes that met the definition of Same Store Homes as of April 1, 2016. As of June 30, 2016 there were 24,657 homes.
|
41 |
Appendix A: Definitions
Recurring Capital Expenditures or Recurring Capex. General replacements and expenditures required to preserve and maintain the value and functionality of a home and its systems as a single family rental.
Renewal Rate. Is calculated by dividing a) the number of renewed residents with current period lease expirations by b) the total lease expirations during the period.
Renewal Rent Growth. Represents the percentage change in monthly contractual rent resulting from all lease renewals that became effective during a measurement period for an identified population of rental units, and is calculated by dividing a) the aggregate contractual first month rent (excluding rent concessions and incentives) on lease renewals executed during the applicable measurement period for an identified population of rental units by b) the aggregate contractual last month rent for such identified population of rental units before renewal. To date, rent concessions and incentives have been used on a limited basis and have not had a significant impact on contractual rent.
REO. Real estate owned, which is associated with the NPL business.
Replacement Rent Growth. Represents the percentage change in monthly contractual rent resulting from new leases on properties previously leased to different residents during a measurement period for an identified population of rental units and is calculated by dividing a) the aggregate contractual first month rent (excluding rent concessions and incentives) on new leases signed during the applicable measurement period for an identified population of occupied rental units by b) the aggregate contractual last month rent for such identified population of rental units under the prior lease on such properties. To date, rent concessions and incentives have been used on a limited basis and have not had a significant impact on contractual rent.
Retention Rate. Is calculated by dividing a) the number of retained residents with current period lease expirations by b) the total lease expirations during the period.
Revenue Enhancing Capital Expenditures. Capital improvements and additions intended to increase the revenue potential for a given property.
Same Store Homes. Homes which have been stabilized for at least fifteen (15) months prior to the start of the current measurement period, excluding any homes that have been disposed of, removed from service or returned to the development period for significant renovation.
Stabilized Homes. Homes that are currently occupied or have been previously leased and occupied that do not meet the criteria to be a Same Store Home. For the three and six months ended June 30, 2016 the Stabilized Home count excludes 434 homes not intended to be held for the long term.
Top 10 Markets. Refers to CSH Homes’ ten markets with the greatest number of homes as of June 30, 2016.
Total Homes. Represents all homes Colony Starwood Homes manages. Includes both Owned Homes and Non-Owned, Managed Homes.
Total Rent Growth. Represents the weighted average rent growth on replacement rents, renewals, and escalating multi-year leases for the period.
UPB. Unpaid principal balance.
Weighted Average Home Age (years). Rounded number of years between when a home was built and the last day of the current measurement period with each market being weighted by its area asset count.
|
42 |
Appendix B: Reconciliations
|
Quarterly Same Store |
|
||||||||||||
|
Three Months Ended June 30, 2016 |
|
||||||||||||
in (000)s |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost to maintain a home reconciliation |
Gross Costs |
|
Chargebacks |
|
Net Costs |
|
|
Chargeback reconciliation |
|
|
|
|||
Repairs and maintenance |
$ |
5,328 |
|
$ |
46 |
|
$ |
5,282 |
|
|
R&M Charges at Move-Out |
$ |
2,381 |
|
Turnover-related costs |
|
5,563 |
|
|
2,381 |
|
|
3,182 |
|
|
R&M Charges During Occupancy |
|
46 |
|
Subtotal - repairs, maintenance and turn costs |
|
10,891 |
|
|
2,427 |
|
|
8,464 |
|
|
Recurring Chargebacks |
|
254 |
|
Landscaping and pool services |
|
1,257 |
|
|
254 |
|
|
1,003 |
|
|
Subtotal - Chargebacks related to cost to maintain |
|
2,681 |
|
Other operating expenses/bad debt expense |
|
4,036 |
|
|
- |
|
|
4,036 |
|
|
Chargebacks not-related to cost to maintain |
|
861 |
|
Subtotal - Other operating expenses/bad debt expense |
|
5,293 |
|
|
254 |
|
|
5,039 |
|
|
Subtotal, Gross Tenant Chargebacks |
|
3,542 |
|
|
|
|
|
|
|
|
|
|
|
|
(-) Chargeback reserve |
|
(1,450 |
) |
Total property and maintenance costs |
$ |
16,184 |
|
$ |
2,681 |
|
$ |
13,503 |
|
|
Total tenant chargebacks |
$ |
2,092 |
|
Integration Costs:
( in 000s) |
Three Months Ended |
|
Six Months Ended |
|
||
Category |
June 30, 2016 |
|
June 30, 2016 |
|
||
Employee related costs |
$ |
1,047 |
|
$ |
5,255 |
|
Accounting |
|
- |
|
|
775 |
|
Office rent |
|
342 |
|
|
564 |
|
IT |
|
294 |
|
|
654 |
|
Other |
|
70 |
|
|
135 |
|
Total |
$ |
1,753 |
|
$ |
7,383 |
|
Merger and Transaction Related Expenses:
in (000)s |
Three Months Ended |
|
Six Months Ended |
|
||
Category |
June 30, 2016 |
|
June 30, 2016 |
|
||
Closing and Success Fees |
$ |
156 |
|
$ |
13,873 |
|
Legal |
|
(2,552 |
) |
|
1,729 |
|
Employee Related Costs |
|
6,161 |
|
|
10,240 |
|
Other |
|
1,308 |
|
|
2,713 |
|
Total |
$ |
5,073 |
|
$ |
28,555 |
|
|
43 |
Appendix B: Reconciliations
Net Operating Income or NOI:
|
|
Three months ended June 30, 2016 |
|
|
Six months ended June 30, 2016 |
|
||||||||||
(Dollars in thousands) |
|
Same Store Homes |
|
|
Stabilized Homes (2) |
|
|
Same Store Homes |
|
|
Stabilized Homes (2) |
|
||||
Reconciliation of net loss to NOI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to Starwood Waypoint Residential Trust shareholders |
|
$ |
(15,675 |
) |
|
$ |
(15,675 |
) |
|
$ |
(59,874 |
) |
|
$ |
(59,874 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (deduct) adjustments to get to total NOI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (Loss) from discontinued operations (NPL/REO) |
|
|
(2,684 |
) |
|
|
(2,684 |
) |
|
|
7,817 |
|
|
|
7,817 |
|
General and administrative |
|
|
13,537 |
|
|
|
13,537 |
|
|
|
30,875 |
|
|
|
30,875 |
|
Share-based compensation |
|
|
711 |
|
|
|
711 |
|
|
|
1,098 |
|
|
|
1,098 |
|
Interest expense |
|
|
37,984 |
|
|
|
37,984 |
|
|
|
75,441 |
|
|
|
75,441 |
|
Depreciation and amortization |
|
|
44,844 |
|
|
|
44,844 |
|
|
|
88,474 |
|
|
|
88,474 |
|
Transaction-related expense |
|
|
5,073 |
|
|
|
5,073 |
|
|
|
28,555 |
|
|
|
28,555 |
|
Impairment of real estate |
|
|
144 |
|
|
|
144 |
|
|
|
174 |
|
|
|
174 |
|
Realized (gain) loss on sales of investments in real estate, net |
|
|
(527 |
) |
|
|
(527 |
) |
|
|
(1,911 |
) |
|
|
(1,911 |
) |
Equity in income from unconsolidated joint ventures |
|
|
(157 |
) |
|
|
(157 |
) |
|
|
(354 |
) |
|
|
(354 |
) |
Other (expense) income, net |
|
|
2,296 |
|
|
|
2,296 |
|
|
|
2,691 |
|
|
|
2,691 |
|
Income tax expense |
|
|
81 |
|
|
|
81 |
|
|
|
326 |
|
|
|
326 |
|
Net income attributable to non-controlling interests |
|
|
(988 |
) |
|
|
(988 |
) |
|
|
(3,838 |
) |
|
|
(3,838 |
) |
Total NOI |
|
$ |
84,639 |
|
|
$ |
84,639 |
|
|
$ |
169,474 |
|
|
$ |
169,474 |
|
Add (deduct) adjustments to get to total portfolio NOI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property management integration costs (1) |
|
|
806 |
|
|
|
806 |
|
|
|
2,108 |
|
|
|
2,108 |
|
Non-portfolio NOI components: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating revenues on non-portfolio homes (1) |
|
|
(32,542 |
) |
|
|
(3,820 |
) |
|
|
(82,074 |
) |
|
|
(7,867 |
) |
Property operating expenses on non-portfolio homes (1) |
|
|
14,711 |
|
|
|
3,376 |
|
|
|
34,695 |
|
|
|
6,198 |
|
Add Total Non-portfolio NOI |
|
$ |
(17,831 |
) |
|
$ |
(444 |
) |
|
$ |
(47,379 |
) |
|
$ |
(1,669 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total portfolio NOI |
|
$ |
67,614 |
|
|
$ |
85,001 |
|
|
$ |
124,203 |
|
|
$ |
169,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation portfolio Core NOI margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
|
$ |
106,264 |
|
|
$ |
133,771 |
|
|
$ |
192,050 |
|
|
$ |
263,173 |
|
Fee income |
|
|
2,935 |
|
|
|
3,697 |
|
|
|
4,679 |
|
|
|
6,426 |
|
Less bad debt expense |
|
|
(1,536 |
) |
|
|
(1,888 |
) |
|
|
(3,049 |
) |
|
|
(4,085 |
) |
Total rental revenues |
|
$ |
107,663 |
|
|
$ |
135,580 |
|
|
$ |
193,680 |
|
|
$ |
265,514 |
|
Portfolio Core NOI margin |
|
|
62.8 |
% |
|
|
62.7 |
% |
|
|
64.1 |
% |
|
|
64.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) see Income Statement Bridge page |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Stabilized is the summation of Same Store Homes plus Stabilized Homes as defined in Appendix A. |
|
|
|
|
|
|
|
|
|
|
44 |
Appendix B: Reconciliations
Other Assets:
in (000)s |
|
|
|
Description |
June 30, 2016 |
|
|
Accounts receivable, net of allowance |
|
8,918 |
|
Prepaids |
|
9,558 |
|
Deferred finance costs, net |
|
4,266 |
|
Deposits |
|
4,507 |
|
Deferred leasing costs and lease intangibles, net |
|
4,246 |
|
Other |
|
9,171 |
|
Total |
$ |
40,666 |
|
Other Markets:
Three months ended June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market: |
|
Same-Store Homes |
|
|
Stabilized Homes |
|
|
Development Homes |
|
|
Other Homes |
|
|
Owned Homes (1) |
|
|
Owned Homes Occupied % (1) |
|
|
Non-Owned, Managed Homes (6) |
|
|
Total Homes |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chicago |
|
|
485 |
|
|
|
293 |
|
|
|
- |
|
|
|
14 |
|
|
|
792 |
|
|
|
94.1% |
|
|
|
395 |
|
|
|
1,187 |
|
Other (2) |
|
|
198 |
|
|
|
1 |
|
|
|
- |
|
|
|
16 |
|
|
|
215 |
|
|
|
99.0% |
|
|
|
7 |
|
|
|
222 |
|
Total |
|
|
683 |
|
|
|
294 |
|
|
|
- |
|
|
|
30 |
|
|
|
1,007 |
|
|
|
95.2% |
|
|
|
402 |
|
|
|
1,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market: |
|
Same-Store Homes |
|
|
Stabilized Homes |
|
|
Development Homes |
|
|
Other Homes |
|
|
Owned Homes (1) |
|
|
Owned Homes Occupied % (1) |
|
|
Non-Owned, Managed Homes (6) |
|
|
Total Homes |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chicago |
|
|
405 |
|
|
|
373 |
|
|
|
- |
|
|
|
14 |
|
|
|
792 |
|
|
|
94.1% |
|
|
|
395 |
|
|
|
1,187 |
|
Other (2) |
|
|
192 |
|
|
|
7 |
|
|
|
- |
|
|
|
16 |
|
|
|
215 |
|
|
|
99.0% |
|
|
|
7 |
|
|
|
222 |
|
Total |
|
|
597 |
|
|
|
380 |
|
|
|
- |
|
|
|
30 |
|
|
|
1,007 |
|
|
|
95.2% |
|
|
|
402 |
|
|
|
1,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes REO properties. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(2) Other Market includes Tucson, Delaware, Pennsylvania, New York, Maryland and Central Texas markets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares:
|
Three months ended |
|
|
Six months ended |
|
||
Description |
Number of Shares |
|
|
Number of Shares |
|
||
Weighted-average shares - basic and diluted |
|
101,486,847 |
|
|
|
101,776,801 |
|
OP units |
|
6,400,000 |
|
|
|
6,400,000 |
|
Total |
|
107,886,847 |
|
|
|
108,176,801 |
|
|
45 |