Content analysis
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Legalese | ||
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H.S. junior Avg
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New words:
Berkadia, condemnation, dead, deal, employed, Fannie, forfeitable, Frank, Freddie, JLL, Knight, Lang, LaSalle, lender, Mac, Mae, Newmark, NKF, Subordinated, temporary, unamortized, unreasonably, unrecoverable, withheld
Removed:
blended, expire, job, lessen, pledged, protect, pursue, reinvested
Financial report summary
?Risks
- We have paid, and it is likely we will continue to pay, distributions from sources other than our cash flow from operations, including from the proceeds of our public offering. To the extent that we pay distributions from sources other than our cash flow from operations, we will have reduced funds available for investment and the overall return to our stockholders may be reduced.
- The geographic concentration of our portfolio may make us particularly susceptible to adverse economic developments in the real estate markets of those areas.
- A cybersecurity incident and other technology disruptions could negatively impact our business.
- The actual value of shares that we repurchase under our share repurchase program may be substantially less than what we pay.
- Maryland law and our organizational documents limit your right to bring claims against our officers and directors.
- Risks associated with co-ownership arrangements with our co-venture partners, co-tenants or other partners.
- The conversion of the convertible stock held by our advisor due upon termination of the advisory agreement and the voting rights granted to the holder of our convertible stock, may discourage a takeover attempt or prevent us from effecting a merger that otherwise would have been in the best interests of our stockholders.
- Our bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain actions and proceedings that may be initiated by our stockholders.
- We may change our targeted investments and investment guidelines without stockholder consent.
- We may compete with Steadfast Apartment REIT, Steadfast Apartment REIT III and other affiliates of our sponsor for opportunities to acquire or sell investments, which may have an adverse impact on our operations.
- A concentration of our investments in the apartment community sector may leave our profitability vulnerable to a downturn or slowdown in the sector.
- We depend on tenants for our revenue, and, accordingly, our revenue and our ability to make distributions to our stockholders is dependent upon the ability of the tenants of our properties to generate enough income to pay their rents in a timely manner. Substantial non-renewals, terminations or lease defaults could reduce our net income and limit our ability to make distributions to our stockholders.
- We may be unable to secure funds for future capital improvements, which could adversely impact our ability to make cash distributions to our stockholders.
- Uninsured losses or premiums for insurance coverage relating to real property may adversely affect your returns.
- Increases in interest rates could increase the amount of our debt payments and negatively impact our operating results.
- Changes in banks’ inter-bank lending rate reporting practices or the method pursuant to which LIBOR is determined may impact our variable rate debt and adversely affect our ability to manage and hedge our debt.
- The derivative financial instruments that we use to hedge against interest rate fluctuations may not be successful in mitigating our risks associated with interest rates and could reduce the overall returns on your investment.
- Distributions payable by REITs generally are subject to a higher tax rate than regular corporate dividends under current law.
- To maintain our REIT status, we may be forced to forgo otherwise attractive opportunities, which may delay or hinder our ability to meet our investment objectives and reduce your overall return.
- If our operating partnership fails to maintain its status as a partnership, its income may be subject to taxation, which would reduce the cash available for distribution to you and likely result in a loss of our REIT status.
- Our property taxes could increase due to property tax rate changes or reassessment, which would impact our cash flows.
- Stockholders that are Benefit Plans and IRAs may be limited in their ability to withdraw required minimum distributions as a result of an investment in shares of our common stock.
- Specific rules apply to foreign, governmental and church plans.
Management Discussion
- The discussion that follows is based on our consolidated results of operations for the three and nine months ended September 30, 2019 and 2018. The ability to compare one period to another is affected by the acquisitions and dispositions made during those periods and our value-enhancement strategy. The number of multifamily properties wholly owned by us decreased to 27 as of September 30, 2019, from 39 as of September 30, 2018. Our results of operations were primarily affected by (1) the disposition of three multifamily properties and the contribution of eight multifamily properties to the joint venture in exchange for cash and a proportionate 10% interest in the joint venture during the nine months ended September 30, 2018, (2) the acquisition of two multifamily properties during the nine months ended September 30, 2018, (3) the disposition of 12 multifamily properties subsequent to September 30, 2018 and (4) our value-enhancement activity completed through September 30, 2019, as further discussed below.