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| 8-K - 8-K - Q3 2016 REPORT SUMMARY - Lightstone Value Plus REIT V, Inc. | form8-kxq32016reportsummary.htm |
QUARTER ENDED SEPTEMBER 30, 2016
II
Asset Disposition Update
The Company 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%.
Third Quarter and Subsequent Events Overview
As of December 5, 2016
SUMMARY
Estimated Share Valuation increased to $7.80
Sold one multifamily property
Maintained strong occupancy levels
Strong Occupancy Levels
Overall occupancy levels at the Company’s
operating properties remain strong. The
table below illustrates occupancy rates for the
Company’s operating properties as of September
30, 2016 and 2015:
Occupancy Rate1
Property 2016 2015
Gardens Medical Pavilion 66% 62%
River Club and Townhomes
at River Club 99% 100%
Lakes of Margate 95% 93%
Arbors Harbor Town 94% 96%
22 Exchange 90% 96%
Parkside apartments 93% 85%
Courtyard Kauai Hotel2 86% 78%
1As of September 30
2Average occupancy for three months ended Sept. 30
Arbors Harbor Town Apartments in Memphis, Tennessee
Improvement in Estimated Share Valuation
On November 18, 2016, the board of directors established an estimated per-
share value (ESV) of the Company’s common stock of $7.80 as of October
31, 2016. The new ESV is an increase of $0.11 compared with the previous
adjusted ESV of $7.69. Five of the eight portfolio investments experienced
increases in their equity valuations and contributed to the increase in the
ESV. These increases were partially offset by a decline in the equity value of
certain real estate investments as a result of changes in the markets in which
they are located.
The chart below illustrates the growth in value the since the Company’s
inception compared with the original offering price of $10.
Total Value Creation Per Share Since Inception
Original offering price = $10.00 per share
1Regular distributions paid since inception per weighted average shares outstanding
through October 31, 2016.
The actual regular distributions a shareholder has received will vary based on the date
they invested.
October 31, 2016
Estimated Share Value $7.80
Cumulative Regular Distributions1 $1.19
Special Cash Distributions:
May 2012 $0.50
September 2014 $0.50
March 2015 $1.00
January 2016 $1.50
Total Value $12.49
QUARTER ENDED SEPTEMBER 30, 2016
II
Please join us for the Year End
2016 call on Wednesday, March
29, 2017 at 1:00 pm Central
Time. Further details about this
call will be included in your next
quarterly statement.
YEAR END UPDATE CALL
Wednesday
MAR
29
Conclusion
The Company is in the asset disposition phase of its lifecycle and anticipates
winding up its operations in 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 September 30, 2016
Eight portfolio investments consisting of:
5 multifamily/student housing 1
1 office property
1 hospitality property
1 mezzanine loan on a multifamily
development
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 partners’ share.
2 The gain on sale of real estate for the three and nine months ended September 30, 2016, is related to the sale of Lakewood Flats. For the three months ended September 30, 2015,
includes our proportionate share of the gain on sale of real estate related to the Holstenplatz and Wimberly investments. For the nine months ended September 30, 2015, includes
our proportionate share of the gain on sale of real estate related to the Babcock, AJS, Holstenplatz and Wimberly 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. The gain on sale of Holstenplatz includes a CTA credit of approximately $0.4 million
due to the substantial liquidation of Holstenplatz.
3 During the first quarter of 2015, we recorded an estimated provision for income tax of approximately $2.2 million 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.
During the third quarter of 2015, we recorded an estimated provision for income tax of approximately $1 million as result of foreign income tax related to the sale of Holstenplatz,
resulting in a total income tax provision of $2.7 million for the nine months ended September 30, 2015. We had less than $0.1 million income tax benefit in the third quarter of
2016, related to the difference in actual income taxes due and the originally estimated income taxes payable on the sale of Holstenplatz.
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 third 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
Sept. 30, 2016
3 mos. ended
Sept. 30, 2015
9 mos. ended
Sept. 30, 2016
9 mos. ended
Sept. 30, 2015
FFO $ 205 $ 115 $ 3,120 $ 2,579
FFO per share $ 0.01 $ 0.00 $ 0.12 $ 0.10
Distributions declared $ – $ – $ – $ 25,732
Distributions per share $ – $ – $ – $ 1.00
(in thousands) As of Sept. 30, 2016
As of
Dec. 31, 2015
Total assets $ 274,662 $ 342,189
Total liabilities $ 152,702 $ 225,610
Reconciliation of FFO to Net Income
(in thousands, except
per share data)
3 mos. ended
Sept. 30, 2016
3 mos. ended
Sept. 30, 2015
9 mos. ended
Sept. 30, 2016
9 mos. ended
Sept. 30, 2015
Net income attributable
to the Company $ 9,383 $ 12,855 $ 7,145 $ 10,722
Adjustments for:
Real estate depreciation
and amortization1 2,313 3,085 7,466 10,767
Gain on sale of
real estate2 (11,462) (16,884) (11,462) (21,584)
Income tax expense
(benefit) associated
with real estate sale3
(29) 1,059 (29) 2,674
FFO 4 $ 205 $ 115 $ 3,120 $ 2,579
GAAP weighted average
shares, basic and diluted 25,391 25,667 25,470 25,715
FFO per share $ 0.01 $ 0.00 $ 0.12 $ 0.10
Net income per share $ 0.37 $ 0.50 $ 0.28 $ 0.42
QUARTER ENDED SEPTEMBER 30, 2016
II
Published 12/16 © 2016 Behringer 3890-1 OP2 Q3 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.