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| 8-K - 8-K - Q2 2016 REPORT SUMMARY - Lightstone Value Plus REIT V, Inc. | form8-kxq22016reportsummary.htm |
QUARTER ENDED JUNE 30, 2016
II
Sold Lakewood Flats
Behringer Harvard Opportunity REIT II
continues to advance through the asset
disposition phase of its lifecycle. On August
16, 2016, the Company sold Lakewood Flats
Apartments in Dallas for a contract price of
$68.8 million. This property was acquired in
2014 for a contract price of $60.5 million. The
sale netted approximately $32 million of cash
to the Company and generated a property-level
average annual return of 23%.
Denver Multifamily
Development
Nearing Completion
The developer of the three-building Prospect Park
multifamily development in Denver, for which
the Company provided mezzanine financing,
expects to finish construction in the Fall of 2016.
Construction of the first tower is complete and
tenants are moving in. The property manager is
currently accepting reservations for the other two
towers. The $15.3 million mezzanine loan to the
developer matures in March 2017.
Second Quarter and Subsequent Events Overview
As of August 16, 2016
SUMMARY
Continuing to dispose of assets
Stable occupancy levels
Nearing completion of Denver multifamily project, in
which Company is a mezzanine lender
Stable Occupancy Levels
Overall occupancy levels at the Company’s operating properties remain
stable. The table below illustrates occupancy rates for the Company’s
operating properties as of June 30, 2016 and 2015:
Occupancy Rate1
Property 2016 2015
Gardens Medical Pavilion 66% 60%
River Club and Townhomes at River Club 92% 93%
Lakes of Margate 96% 93%
Arbors Harbor Town 97% 90%
22 Exchange 88% 80%
Parkside apartments 88% 84%
Lakewood Flats2 98% 94%
Courtyard Kauai Hotel3 78% 81%
1As of June 30
2Sold on August 16, 2016
3Average occupancy for three months ended June 30
The Lakes of Margate in Margate, Florida
Arbors Harbor Town Apartments in Memphis, Tennessee
QUARTER ENDED JUNE 30, 2016
II
Please join us for the third
quarter 2016 call on Tuesday,
December 6, 2016 at 1:00 pm
Central Time. Further details
about this call will be included
in your next quarterly statement
THIRD QUARTER UPDATE CALL
Tuesday
DEC
6
Conclusion
The Company is in the asset disposition phase of its lifecycle and anticipates
winding up its operations over the next couple of years. We will continue to
manage assets to create liquidity for shareholders; identify the appropriate
times to sell remaining assets; maintain a strong balance sheet, which
provides flexibility to execute our disposition plan; and consider additional
special distributions from asset sales.
PORTFOLIO SUMMARY
As of June 30, 2016
Nine portfolio investments consisting of:
6 multifamily/student housing 1
1 office property
1 hospitality property
1 mezzanine loan on a multifamily
development
1One multifamily property was sold on August 16, 2016
1 Includes our consolidated amount, as well as our pro rata share of those unconsolidated investments
which we account for under the equity method of accounting, and the noncontrolling interest
adjustment for the third-party partner’s share.
2 For the six months ended June, 2015, includes our proportionate share of the gain on sale of real
estate related to the Babcock and AJS investments. The gain on sale of AJS is net of cumulative foreign
currency translation loss of approximately $0.6 million due to the substantial liquidation of AJS.
3 During the first quarter of 2015, we recorded an estimated provision for income tax of
approximately $2.2 million for the six months ended June 30, 2015 as a result of foreign income tax
related to the sale of AJS. During the second quarter of 2015, we recorded a credit of $0.5 million to
the provision for income tax based on a change in the estimated taxes payable on the sale of AJS.
4 FFO (Funds From Operations) should not be considered as an alternative to net income (loss), or
as indications of our liquidity, nor is it either indicative of funds available to fund our cash needs,
including our ability to fund distributions. FFO should be reviewed in connection with other GAAP
measurements.
A reconciliation of FFO and FFO-per-share to net income can be found in our second quarter Form
10-Q on file with the SEC.
The Courtyard by Marriott in Kauai, Hawaii
Financial Highlights
(in thousands, except
per share data)
3 mos. ended
June 30, 2016
3 mos. ended
June 30, 2015
6 mos. ended
June 30, 2016
6 mos. ended
June 30, 2015
FFO $ 1,134 $ 1,174 $ 2,915 $ 2,464
FFO per share $ 0.04 $ 0.05 $ 0.11 $ 0.10
Distributions declared $ – $ – $ – $ 25,732
Distributions per share $ – $ – $ – $ 1.00
(in thousands) As of June 30, 2016
As of
Dec. 31, 2015
Total assets $ 299,164 $ 342,189
Total liabilities $ 185,987 $ 225,610
Reconciliation of FFO to Net Loss
(in thousands, except
per share data)
3 mos. ended
June 30, 2016
3 mos. ended
June 30, 2015
6 mos. ended
June 30, 2016
6 mos. ended
June 30, 2015
Net loss attributable
to the Company $ (1,165) $ (1,960) $ (2,238) $ (2,133)
Adjustments for:
Real estate depreciation
and amortization1 2,299 3,653 5,153 7,682
Gain on sale of
real estate2 – – – (4,700)
Income tax expense
associated with real
estate sale3
– (519) – 1,615
FFO 4 $ 1,134 $ 1,174 $ 2,915 $ 2,464
GAAP weighted average
shares, basic and diluted 25,466 25,704 25,510 25,740
FFO per share $ 0.04 $ 0.05 $ 0.11 $ 0.10
Net income (loss)
per share $ (0.05) $ (0.07) $ (0.09) $ (0.08)
QUARTER ENDED JUNE 30, 2016
II
Published 9/16 © 2016 Behringer 3809-1 OP2 Q2 Report 2016
15601 Dallas Parkway, Suite 600
Addison, TX 75001
214.655.1600
behringerinvestments.com
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements, including discussion and analysis of the financial condition of us and our
subsidiaries and other matters. These forward-looking statements are not historical facts but are the intent, belief or current
expectations of our management based on their knowledge and understanding of our business and industry. Words such as
“may,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “could,” “should” and variations of
these words and similar expressions are intended to identify forward-looking statements. We intend that such forward-looking
statements be subject to the safe harbor provisions created by Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. These statements are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to
differ materially from those expressed or forecasted in the forward-looking statements.
IMPORTANT RISK FACTORS TO CONSIDER
Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. We caution you
not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date of this
presentation. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions
the occurrence of unanticipated events or changes to future operating results. Factors that could cause actual results to differ
materially from any forward-looking statements made in this document include but are not limited to: market and economic
challenges experienced by the U.S. and global economies or real estate industry as a whole and the local economic conditions in
the markets in which our investments are located; the availability of cash flow from operating activities for special distributions,
if any; conflicts of interest arising out of our relationships with our advisor and its affiliates; our ability to retain our executive
officers and other key personnel of our advisor, our property manager and their affiliates; our level of debt and the terms and
limitations imposed on us by our debt agreements; the availability of credit generally, and any failure to obtain debt financing at
favorable terms or a failure to satisfy the conditions and requirements of that debt; our ability to make accretive investments in
a diversified portfolio of assets; future changes in market factors that could affect the ultimate performance of our development
or redevelopment projects, including but not limited to construction costs, plan or design changes, schedule delays, availability
of construction financing, performance of developers, contractors and consultants, and growth in rental rates and operating
costs; our ability to secure leases at favorable rental rates; our ability to sell our assets at a price and on a timeline consistent with
our investment objectives; impairment charges; unfavorable changes in laws or regulations impacting our business, our assets
or our key relationships; and factors that could affect our ability to qualify as a real estate investment trust. The forward-looking
statements should be read in light of these and other risk factors identified in the “Risk Factors” section of our Annual Report on
Form 10-K for the year ended December 31, 2015, as filed with the Securities and Exchange Commission.