Exhibit 99.1
AMERICAN RESIDENTIAL PROPERTIES, INC. REPORTS
FOURTH QUARTER AND FULL YEAR 2014 FINANCIAL RESULTS
SCOTTSDALE, AZ, March 11, 2015 — American Residential Properties, Inc. (NYSE: ARPI) (the “Company”) reported today results for the quarter and full year ended December 31, 2014.
Fourth Quarter 2014 Highlights
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| • | Increased revenue by 7% to $25 million compared to the prior quarter. |
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| • | Invested $112 million to acquire 688 single-family homes, an 8% increase in homes owned compared to the prior quarter, bringing total investment in real estate to $1.3 billion. |
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| • | Increased the number of leased properties by 463 properties, or 7%, compared to the prior quarter. |
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| • | Continued strong occupancy of 92% on stabilized properties and 81% on the total portfolio. |
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| • | Raised rents by an average of 4.2% on renewals. |
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| • | Achieved 72% retention on renewals. |
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| • | Owned $21 million in short-term private mortgage loans with a weighted-average interest rate of 11.9%. |
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| • | Core FFO attributable to common stockholders was $2.8 million, or $0.09 per diluted share. |
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| • | FFO attributable to common stockholders was $1.2 million, or $0.04 per diluted share. |
Full Year 2014 Highlights
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| • | Invested $457 million to acquire 2,839 single-family homes. |
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| • | Grew the portfolio 46% to 8,893 single-family homes located in 13 states. |
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| • | Increased revenue by 129% to $87 million compared to the prior year. |
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| • | Core FFO attributable to common stockholders was $12.4 million, or $0.38 per diluted share. |
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| • | FFO attributable to common stockholders was $8.5 million, or $0.26 per diluted share. |
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| • | Ratio of total debt to total gross assets was 54% as of year-end. |
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| • | Raised $341 million in gross proceeds, with an effective weighted average of the fixed-rate spreads of LIBOR plus 2.11%, through the securitization of a portfolio of 2,876 single-family homes. |
“2014 was another year of strong performance for American Residential Properties,” said Stephen G. Schmitz, Chairman and Chief Executive Officer. “We more than doubled our revenue to $87 million and delivered core FFO attributable to common stockholders of $12 million, a 143% increase from last year. For the full year, we increased our portfolio by 46% over 2013, deploying $457 million to acquire over 2,800 single family homes bringing our portfolio to 8,893 homes for a total investment of $1.3 billion. We have curtailed our acquisition activity and during 2015, we are focusing on refining our operating platform, including further regionalization of certain operating functions to advance efficiencies, driving revenue growth by aggressively managing rents and retention plus selectively selling non-core properties to create value for our shareholders."
Fourth Quarter 2014 Financial Results
Total Revenue
Total revenue for the quarter ended December 31, 2014 increased $1.7 million to $25.2 million, compared to $23.5 million for the quarter ended September 30, 2014, and increased $12.0 million, compared to $13.2 million for the quarter ended December 31, 2013. The increase in total revenue from the prior quarter is primarily attributable to higher rental income generated from leasing an additional 463 homes.
Net Loss Attributable to Common Stockholders
Net loss attributable to common stockholders for the quarter ended December 31, 2014 increased $3.3 million to $(12.5) million, or $(0.39) per diluted share, compared to $(9.2) million, or $(0.28) per diluted share, for the quarter ended September 30, 2014, and increased $4.1 million, compared to $(8.4) million, or $(0.26) per diluted share, for the quarter ended December 31, 2013. The increase in net loss attributable to common stockholders from the prior quarter is primarily attributable to an increase in depreciation expense due to the increase in our portfolio of single-family homes and an increase in interest expense related to higher average outstanding debt incurred to expand our portfolio.
FFO and Core FFO Attributable to Common Stockholders
Funds from operations (“FFO”) attributable to common stockholders for the quarter ended December 31, 2014 decreased $1.8 million to $1.2 million, or $0.04 per diluted share, compared to $2.9 million, or $0.09 per diluted share, for the quarter ended September 30, 2014, and increased $2.0 million compared to $(0.8) million, or $(0.03) per diluted share, for the quarter ended December 31, 2013.
Core funds from operations (“Core FFO”) attributable to common stockholders for the quarter ended December 31, 2014 decreased $1.0 million to $2.8 million, or $0.09 per diluted share, compared to $3.8 million, or $0.12 per diluted share, for the quarter ended September 30, 2014, and increased $2.8 million, compared to $0.0 million, or $0.00 per diluted share, for the quarter ended December 31, 2013.
Full Year 2014 Financial Results
Total Revenue
Total revenue for the year ended December 31, 2014 increased $48.9 million to $86.9 million, compared to $38.0 million for the year ended December 31, 2013. The increase in total revenue from the prior year is primarily attributable to higher rental income generated from leasing an additional 2,645 homes.
Net Loss Attributable to Common Stockholders
Net loss attributable to common stockholders for the year ended December 31, 2014 increased $12.0 million to $(37.0) million, or $(1.15) per share, compared to $(25.0) million, or $(0.92) per share, for the year ended December 31, 2013. The increase in net loss attributable to common stockholders from the prior year is primarily attributable to an increase in depreciation expense due to the increase in our portfolio of single-family homes and an increase in interest expense related to higher average outstanding debt incurred to expand our portfolio, which were offset by an increase in operating results due to ongoing stabilization of the portfolio.
FFO and Core FFO Attributable to Common Stockholders
FFO attributable to common stockholders for the year ended December 31, 2014 increased $12.0 million to $8.5 million, or $0.26 per diluted share, compared to $(3.5) million, or $(0.13) per diluted share, for the year ended December 31, 2013.
Core FFO attributable to common stockholders for the year ended December 31, 2014 increased $7.3 million to $12.4 million, or $0.38 per diluted share, compared to $5.1 million, or $0.19 per diluted share, for the year ended December 31, 2013.
Portfolio Highlights
Real Estate Acquisitions
From October 1, 2014 to December 31, 2014, the Company acquired 688 single-family homes, including 162 in Texas, 93 in Tennessee, 85 in North Carolina, 300 in Georgia and 48 in Florida, and incurred renovation and re-tenancy costs on the Company’s existing portfolio, for a total capital investment of approximately $127 million.
Portfolio
As of December 31, 2014, the Company owned 8,893 single-family homes in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Nevada, North Carolina, Ohio, South Carolina, Tennessee and Texas for a total capital investment of approximately
$1.3 billion. As of December 31, 2014, approximately 92% of the Company’s stabilized portfolio was leased and approximately 81% of the total portfolio was leased.
Operating Metrics
The following table summarizes the Company’s portfolio and operating metrics:
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| | | | | | | | | | | | |
| | | December 31, 2014 | | September 30, 2014 | | June 30, 2014 | | March 31, 2014 |
| Total Portfolio of single-family homes | | | | | | | | |
| Self-managed homes | | 8,299 |
| | 7,613 |
| | 6,595 |
| | 6,152 |
|
| Self-managed % leased | | 79.3 | % | | 80.1 | % | | 87.6 | % | | 80.0 | % |
| Preferred operator program homes | | 594 |
| | 610 |
| | 610 |
| | 610 |
|
| Preferred operator program % leased | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
| Total Homes | | 8,893 |
| | 8,223 |
| | 7,205 |
| | 6,762 |
|
| Total % Leased | | 80.7 | % | | 81.6 | % | | 88.6 | % | | 81.0 | % |
| Portfolio of stabilized single-family homes | | | | | | | | |
| Self-managed homes | | 7,247 |
| | 6,572 |
| | 6,099 |
| | 5,277 |
|
| Self-managed % leased | | 90.8 | % | | 92.8 | % | | 94.7 | % | | 92.7 | % |
| Preferred operator program homes | | 594 |
| | 610 |
| | 610 |
| | 610 |
|
| Preferred operator program % leased | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
| Total Homes | | 7,841 |
| | 7,182 |
| | 6,709 |
| | 5,887 |
|
| Total % Leased | | 91.5 | % | | 93.4 | % | | 95.2 | % | | 93.4 | % |
Recent Developments
For the period from January 1, 2015 to February 28, 2015, the Company acquired 123 single-family homes for a total purchase price of approximately $22 million and contracted to acquire 30 additional homes for a total purchase price of approximately $5 million. Of the homes the Company acquired or contracted to acquire during this period, 90 homes are in Tennessee, 32 homes are in Georgia, 26 homes are in Texas, 4 homes are in North Carolina, and 1 home is in Florida. There is no assurance that the Company will close on the properties it has under contract.
Conference Call
The Company will host a conference call commencing at 11:00 AM Eastern Daylight Time on Thursday, March 12, 2015, to discuss its financial results for the quarter and full year ended December 31, 2014 and to provide a Company update. To participate in the event by telephone, please dial (800) 446-2782 approximately ten minutes prior to the start time (to allow time for registration) and use conference ID 39142753. International callers should dial (847) 413-3235 and enter the same conference ID number.
You may listen to the teleconference via live webcast on the Internet on the Company’s website at www.americanresidentialproperties.com in the Investor Relations section under the Calendar of Events link.
A replay of the conference call will be available for two weeks, beginning March 12, 2014 at 1:30 PM Eastern Daylight Time, until March 26, 2014 at 11:59 PM Eastern Daylight Time. To access the replay, dial (888) 843-7419 and use conference ID 35088377#. International callers should dial (630) 652-3042 and enter the same conference ID number.
Non-GAAP Financial Measures
FFO and Core FFO
FFO is a widely recognized measure of real estate investment trust, or REIT, performance. The Company calculates FFO as defined by the National Association of Real Estate Investment Trusts, or NAREIT. FFO represents net income (loss) (as computed in accordance with U.S. generally accepted accounting principles, or GAAP), excluding gains from disposition of property, plus real estate-related depreciation and amortization (including capitalized leasing costs).
The Company also presents Core FFO, which is FFO excluding acquisition costs and items that are non-recurring or not related to the Company’s core business activities. FFO and Core FFO are supplemental non-GAAP financial measures. Management uses FFO and Core FFO as supplemental performance measures because FFO and Core FFO account for trends in occupancy rates, rental rates and operating costs. The Company also believes that, as widely recognized measures of the performance of REITs, FFO and Core FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs.
However, because FFO and Core FFO exclude depreciation and amortization and capture neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results of operations, the utility of FFO and Core FFO as measures of the Company’s performance is limited. Other equity REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, the Company’s FFO and Core FFO may not be comparable to those of other REITs. As a result, FFO and Core FFO should be considered only as supplements to net income (loss) as a measure of the Company’s performance. FFO and Core FFO should not be used as measures of the Company’s liquidity, nor is either indicative of funds available to fund the Company’s cash needs, including the Company’s ability to pay dividends or make distributions. FFO and Core FFO also should not be used as supplements to or substitutes for net income (loss) or net cash flows from operating activities (as computed in accordance with GAAP).
About American Residential Properties, Inc.
American Residential Properties, Inc. is an internally managed real estate company, organized as a REIT for federal income tax purposes, that acquires, owns and manages single-family homes as rental properties in select communities nationwide. The Company’s primary business strategy is to acquire, restore, lease and manage single-family homes as well-maintained investment properties to generate attractive, risk-adjusted returns over the long-term. With a vertically integrated real estate acquisition and management platform incorporating disciplined acquisition criteria, extensive research, seasoned personnel and comprehensive operations, the Company is well-positioned to execute its strategy.
Additional information about American Residential Properties, Inc. can be found on the Company’s website at www.americanresidentialproperties.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,” “project,” “predict,” “forecast,” “continue,” “plan” or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Examples of forward-looking statements include descriptions of the Company’s plans for further operational efficiencies, managing rent increases and retention. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the single-family rental industry and other factors as are described in greater detail in the Company’s filings with the Securities and Exchange Commission.
All information in this press release is current as of the date of this release. The Company undertakes no obligation to update the statements in this release to conform the statements to actual results or changes in the Company’s expectations.
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| INVESTOR CONTACT: | | American Residential Properties, Inc. |
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| | | Shant Koumriqian Chief Financial Officer IR@amresprop.com 480-474-4800 |
AMERICAN RESIDENTIAL PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share amounts)
|
| | | | | | | | |
| | | December 31, 2014 (unaudited) | | December 31, 2013 |
| Assets | | | | |
| Investment in real estate: | | | | |
| Land | | $ | 249,151 |
| | $ | 158,795 |
|
| Building and improvements | | 1,042,954 |
| | 627,881 |
|
| Furniture, fixtures and equipment | | 9,508 |
| | 6,930 |
|
| | | 1,301,613 |
| | 793,606 |
|
| Less: accumulated depreciation | | (58,010 | ) | | (18,058 | ) |
| Investment in real estate, net | | 1,243,603 |
| | 775,548 |
|
| Mortgage financings | | 21,097 |
| | 43,512 |
|
| Cash and cash equivalents | | 21,270 |
| | 24,294 |
|
| Restricted cash | | 11,473 |
| | — |
|
| Acquisition deposits | | 2,561 |
| | 282 |
|
| Rents and other receivables, net | | 4,583 |
| | 2,949 |
|
| Deferred leasing costs and lease intangibles, net | | 3,391 |
| | 2,454 |
|
| Deferred financing costs, net | | 13,037 |
| | 6,558 |
|
| Investment in unconsolidated ventures | | 25,691 |
| | 26,611 |
|
| Goodwill | | 3,500 |
| | 3,500 |
|
| Other, net | | 10,567 |
| | 8,494 |
|
| Total assets | | $ | 1,360,773 |
| | $ | 894,202 |
|
| Liabilities and Equity | | | | |
| Liabilities: | | | | |
| Revolving credit facility | | $ | 311,000 |
| | $ | 169,000 |
|
| Exchangeable senior notes | | 102,188 |
| | 99,377 |
|
| Securitization loan, net | | 340,675 |
| | — |
|
| Accounts payable and accrued expenses | | 23,507 |
| | 12,862 |
|
| Security deposits | | 7,919 |
| | 3,995 |
|
| Prepaid rent | | 2,919 |
| | 1,549 |
|
| Total liabilities | | 788,208 |
| | 286,783 |
|
| Equity: | | | | |
| American Residential Properties, Inc. stockholders’ equity: | | | | |
| Preferred stock, $0.01 par value, 100,000,000 shares authorized; no shares issued and outstanding at December 31, 2014 and 2013 | | — |
| | — |
|
| Common stock $0.01 par value, 500,000,000 shares authorized; 32,195,280 and 32,171,102 shares issued and outstanding at December 31, 2014 and 2013, respectively | | 322 |
| | 322 |
|
| Additional paid-in capital | | 628,662 |
| | 628,210 |
|
| Other comprehensive loss | | (96 | ) | | — |
|
| Accumulated deficit | | (68,101 | ) | | (31,122 | ) |
| Total American Residential Properties, Inc. stockholders’ equity | | 560,787 |
| | 597,410 |
|
| Non-controlling interests | | 11,778 |
| | 10,009 |
|
| Total equity | | 572,565 |
| | 607,419 |
|
| Total liabilities and equity | | $ | 1,360,773 |
| | $ | 894,202 |
|
AMERICAN RESIDENTIAL PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except share and per-share amounts)
(unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | Year Ended December 31, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| Revenue: | | | | | | | | |
| Self-managed rental revenue | | $ | 22,939 |
| | $ | 10,680 |
| | $ | 76,757 |
| | $ | 26,110 |
|
| Preferred operator rental revenue | | 1,175 |
| | 926 |
| | 5,126 |
| | 6,244 |
|
| Management services (related party) | | 72 |
| | 115 |
| | 393 |
| | 442 |
|
| Interest and other | | 985 |
| | 1,515 |
| | 4,588 |
| | 5,164 |
|
| Total revenue | | 25,171 |
| | 13,236 |
| | 86,864 |
| | 37,960 |
|
| Expenses: | | | | | | | | |
| Property operating and maintenance | | 7,148 |
| | 3,621 |
| | 21,485 |
| | 8,536 |
|
| Real estate taxes | | 3,776 |
| | 2,780 |
| | 14,787 |
| | 6,095 |
|
| Homeowners’ association fees | | 640 |
| | 424 |
| | 2,145 |
| | 1,170 |
|
| Acquisition | | 758 |
| | 140 |
| | 937 |
| | 3,890 |
|
| Depreciation and amortization | | 14,338 |
| | 7,826 |
| | 47,298 |
| | 22,193 |
|
| General, administrative and other | | 3,749 |
| | 4,056 |
| | 15,023 |
| | 16,374 |
|
| Interest | | 7,604 |
| | 2,856 |
| | 22,664 |
| | 5,113 |
|
| Total expenses | | 38,013 |
| | 21,703 |
| | 124,339 |
| | 63,371 |
|
| Loss from continuing operations before equity in net income of unconsolidated ventures | | (12,842 | ) | | (8,467 | ) | | (37,475 | ) | | (25,411 | ) |
| Equity in net (loss) income of unconsolidated ventures | | 72 |
| | (50 | ) | | (158 | ) | | 60 |
|
| Net loss | | (12,770 | ) | | (8,517 | ) | | (37,633 | ) | | (25,351 | ) |
| Net loss attributable to non-controlling interests | | 231 |
| | 139 |
| | 654 |
| | 368 |
|
| Net loss attributable to common stockholders | | $ | (12,539 | ) | | $ | (8,378 | ) | | $ | (36,979 | ) | | $ | (24,983 | ) |
| Basic and diluted loss per share: | | | | | | | | |
| Net loss attributable to common stockholders | | $ | (0.39 | ) | | $ | (0.26 | ) | | $ | (1.15 | ) | | $ | (0.92 | ) |
| Weighted-average number of shares of common stock outstanding | | 32,156,181 |
| | 32,124,930 |
| | 32,143,934 |
| | 27,130,348 |
|
AMERICAN RESIDENTIAL PROPERTIES, INC.
Reconciliation of Net Loss to Funds From Operations (FFO)
(amounts in thousands, except share and per-share amounts)
(unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | Year Ended
December 31, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| Net loss | | $ | (12,770 | ) | | $ | (8,517 | ) | | $ | (37,633 | ) | | $ | (25,351 | ) |
| Add: Depreciation and amortization of real estate assets | | 14,061 |
| | 7,686 |
| | 46,393 |
| | 21,817 |
|
| Less: Gain on sale of real estate | | (111 | ) | | — |
| | (111 | ) | | — |
|
| FFO | | $ | 1,180 |
| | $ | (831 | ) | | $ | 8,649 |
| | $ | (3,534 | ) |
FFO attributable to common stockholders(1) | | $ | 1,159 |
| | $ | (818 | ) | | $ | 8,499 |
| | $ | (3,483 | ) |
| FFO per share of common stock | | | | | | | | |
| Basic | | $ | 0.04 |
| | $ | (0.03 | ) | | $ | 0.26 |
| | (0.13 | ) |
| Diluted | | $ | 0.04 |
| | (0.03 | ) | | 0.26 |
| | (0.13 | ) |
| Weighted-average number of shares of common stock outstanding: | | | | | | | | |
| Basic | | 32,156,181 |
| | 32,124,930 |
| | 32,143,934 |
| | 27,130,348 |
|
Diluted(2) | | 32,815,752 |
| | 32,124,930 |
| | 32,759,072 |
| | 27,130,348 |
|
| |
| (1) | Based on a weighted-average interest in the Company’s operating partnership of approximately 98.18% and 98.40%, for the three months ended December 31, 2014 and 2013, respectively, and 98.26% and 98.55% for the twelve months ended December 31, 2014 and 2013, respectively. |
| |
| (2) | Assumes the issuance of potentially issuable shares unless the result would be anti-dilutive. Potentially issuable shares include operating partnership units, vested LTIP unit interests in the Company's operating partnership ("LTIP units"), unvested LTIP units and unvested restricted common stock. |
AMERICAN RESIDENTIAL PROPERTIES, INC.
Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (Core FFO)
(amounts in thousands, except share and per-share amounts)
(unaudited)
|
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | Year Ended
December 31, |
| | | 2014 | | 2013 | | 2014 | | 2013 |
| FFO | | $ | 1,180 |
| | $ | (831 | ) | | $ | 8,649 |
| | $ | (3,534 | ) |
| Add: Non-recurring cash compensation paid upon completion of the IPO | | — |
| | — |
| | — |
| | 1,000 |
|
| Add: Non-recurring stock-based compensation related to the vesting of LTIP units upon completion of the IPO | | — |
| | — |
| | — |
| | 3,142 |
|
Add: Acquisition expense(1) | | 758 |
| | 140 |
| | 937 |
| | 3,890 |
|
| Add: Severance expense | | 113 |
| | 430 |
| | 113 |
| | 430 |
|
| Add: Non-cash interest expense related to amortization of discount on exchangeable senior notes | | 817 |
| | 266 |
| | 2,928 |
| | 266 |
|
| Core FFO | | $ | 2,868 |
| | $ | 5 |
| | $ | 12,627 |
| | $ | 5,194 |
|
Core FFO attributable to common stockholders(2) | | $ | 2,816 |
| | $ | 5 |
| | $ | 12,407 |
| | $ | 5,119 |
|
| Core FFO per share of common stock | | | | | | | | |
| Basic | | $ | 0.09 |
| | $ | — |
| | $ | 0.39 |
| | $ | 0.19 |
|
Diluted
| | $ | 0.09 |
| | $ | — |
| | $ | 0.38 |
| | $ | 0.19 |
|
| Weighted-average number of shares of common stock outstanding: | | | | | | | | |
| Basic | | 32,156,181 |
| | 32,124,930 |
| | 32,143,934 |
| | 27,130,348 |
|
Diluted(3) | | 32,815,752 |
| | 32,684,249 |
| | 32,759,072 |
| | 27,535,807 |
|
| |
| (1) | Includes acquisition expenses primarily related to costs incurred on acquired properties subject to an existing lease and accounted for as a business combination, in accordance with GAAP. |
| |
| (2) | Based on a weighted-average interest in the Company’s operating partnership of approximately 98.18% and 98.40%, for the three months ended December 31, 2014 and 2013, respectively, and 98.26% and 98.55% for the twelve months ended December 31, 2014 and 2013, respectively. |
| |
| (3) | Assumes the issuance of potentially issuable shares unless the result would be anti-dilutive. Potentially issuable shares include operating partnership units, vested LTIP units, unvested LTIP units and unvested restricted common stock. |
AMERICAN RESIDENTIAL PROPERTIES, INC.
Total Portfolio of Single-Family Homes—Summary Statistics
(unaudited)
The following table presents summary statistics of the Company’s entire portfolio of single-family homes by metropolitan statistical area, or MSA, and metropolitan division, or metro division, as of December 31, 2014, in descending order of aggregate investment.
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| MSA/Metro Division | | Number of Homes | | Aggregate Investment (thousands) | | Average Investment Per Home (1) | | Percentage Leased (2) | | Average Age (years) | | Average Size (square feet) |
| Phoenix, AZ | | 1,380 |
| | $ | 202,751 |
| | $ | 146,921 |
| | 92.7 | % | | 17 |
| | 1,713 |
|
| Dallas-Fort Worth, TX | | 1,093 |
| | $ | 179,502 |
| | $ | 164,229 |
| | 79.3 | % | | 11 |
| | 2,114 |
|
| Houston, TX | | 1,106 |
| | $ | 164,524 |
| | $ | 148,756 |
| | 90.7 | % | | 7 |
| | 1,934 |
|
| Atlanta, GA | | 1,062 |
| | $ | 155,622 |
| | $ | 146,536 |
| | 54.0 | % | | 16 |
| | 2,099 |
|
| Nashville, TN | | 744 |
| | $ | 131,093 |
| | $ | 176,200 |
| | 81.3 | % | | 11 |
| | 1,913 |
|
| Florida | | 625 |
| | $ | 86,531 |
| | $ | 138,450 |
| | 61.0 | % | | 13 |
| | 1,722 |
|
| Other Texas | | 375 |
| | $ | 66,998 |
| | $ | 178,662 |
| | 87.2 | % | | 10 |
| | 1,978 |
|
| Chicago, IL | | 511 |
| | $ | 66,790 |
| | $ | 130,705 |
| | 100.0 | % | | 55 |
| | 1,406 |
|
| Charlotte, NC-SC | | 376 |
| | $ | 60,411 |
| | $ | 160,666 |
| | 64.6 | % | | 10 |
| | 2,051 |
|
| Inland Empire, CA | | 213 |
| | $ | 38,516 |
| | $ | 180,825 |
| | 95.8 | % | | 16 |
| | 1,915 |
|
| Indianapolis, IN | | 538 |
| | $ | 38,034 |
| | $ | 70,695 |
| | 83.1 | % | | 52 |
| | 1,321 |
|
| Raleigh, NC | | 240 |
| | $ | 36,722 |
| | $ | 153,008 |
| | 78.8 | % | | 9 |
| | 1,746 |
|
| Winston-Salem, NC | | 234 |
| | $ | 29,560 |
| | $ | 126,324 |
| | 88.5 | % | | 12 |
| | 1,426 |
|
| Other California | | 80 |
| | $ | 10,608 |
| | $ | 132,594 |
| | 95.0 | % | | 36 |
| | 1,335 |
|
| Las Vegas, NV | | 68 |
| | $ | 7,505 |
| | $ | 110,373 |
| | 85.3 | % | | 15 |
| | 1,553 |
|
| Other MSA/Metro Divisions | | 248 |
| | $ | 36,861 |
| | $ | 148,634 |
| | 81.9 | % | | 10 |
| | 1,639 |
|
| Total/Weighted Average | | 8,893 |
| | $ | 1,312,028 |
| | $ | 147,535 |
| | 80.7 | % | | 17 |
| | 1,829 |
|
______________
| |
| (1) | For self-managed homes, represents average purchase price (including broker commissions and closing costs) plus average capital expenditures. For preferred operator program homes, represents purchase price (including broker commissions and closing costs) paid by the Company for the portfolio divided by the number of homes in the portfolio and does not include past, expected or budgeted general and administrative expenses associated with ongoing monitoring activities of the Company’s investment. The preferred operator is obligated to pay for all taxes, insurance, other expenses and capital expenditures (including significant capital improvements) required for the management, operation and maintenance of the properties. Accordingly, absent a default by the preferred operator under a long-term lease agreement with the Company, the Company expects to incur no expenses related to properties under the Company’s preferred operator program, other than general and administrative expenses associated with ongoing monitoring activities of the Company’s investment. |
| |
| (2) | Includes both self-managed homes and preferred operator program homes. The Company classifies homes in its preferred operator program as 100% leased, because each preferred operator is obligated to pay the Company 100% of the base rent specified in the applicable lease irrespective of whether or not the homes are occupied by residential sub-tenants. This does not mean that 100% of the homes leased to preferred operators are occupied by residential sub-tenants. If a preferred operator is unable to lease a material portion of the homes it leases from the Company to residential sub-tenants, it may adversely affect such operator’s ability to pay rent to the Company under the lease. |
AMERICAN RESIDENTIAL PROPERTIES, INC.
Portfolio of Self-Managed Single-Family Homes—Summary Statistics
(unaudited)
The following table presents summary statistics on the Company’s portfolio of single-family homes that the Company manages by MSA and metro division as of December 31, 2014, in descending order of aggregate investment.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Leased Homes |
| MSA/Metro Division | | Number of Homes | | Average Purchase Price Per Home (1) | | Average Capital Expenditures Per Home (2) | | Average Investment Per Home (3) | | Aggregate Investment (thousands) | | Percentage Leased | | Average Age (years) | | Average Size (square feet) | | Average Monthly Rent Per Leased Home | | Annual Average Rent per Leased Home as a Percentage of Average Investment Per Leased Home (4) |
| Phoenix, AZ | | 1,380 |
| | $ | 138,109 |
| | $ | 8,812 |
| | $ | 146,921 |
| | $ | 202,751 |
| | 92.7 | % | | 17 |
| | 1,713 |
| | $ | 1,033 |
| | 8.5 | % |
| Dallas-Fort Worth, TX | | 1,093 |
| | $ | 153,039 |
| | $ | 11,190 |
| | $ | 164,229 |
| | $ | 179,502 |
| | 79.3 | % | | 11 |
| | 2,114 |
| | $ | 1,486 |
| | 10.9 | % |
| Houston, TX | | 1,106 |
| | $ | 141,311 |
| | $ | 7,445 |
| | $ | 148,756 |
| | $ | 164,524 |
| | 90.7 | % | | 7 |
| | 1,934 |
| | $ | 1,400 |
| | 11.3 | % |
| Atlanta, GA | | 1,062 |
| | $ | 136,381 |
| | $ | 10,155 |
| | $ | 146,536 |
| | $ | 155,622 |
| | 54.0 | % | | 16 |
| | 2,099 |
| | $ | 1,216 |
| | 10.4 | % |
| Nashville, TN | | 744 |
| | $ | 164,612 |
| | $ | 11,588 |
| | $ | 176,200 |
| | $ | 131,093 |
| | 81.3 | % | | 11 |
| | 1,913 |
| | $ | 1,417 |
| | 9.7 | % |
| Florida | | 625 |
| | $ | 127,097 |
| | $ | 11,353 |
| | $ | 138,450 |
| | $ | 86,531 |
| | 61.0 | % | | 13 |
| | 1,722 |
| | $ | 1,135 |
| | 10.3 | % |
| Other Texas | | 375 |
| | $ | 167,071 |
| | $ | 11,591 |
| | $ | 178,662 |
| | $ | 66,998 |
| | 87.2 | % | | 10 |
| | 1,978 |
| | $ | 1,608 |
| | 10.9 | % |
| Charlotte, NC-SC | | 376 |
| | $ | 153,317 |
| | $ | 7,349 |
| | $ | 160,666 |
| | $ | 60,411 |
| | 64.6 | % | | 10 |
| | 2,051 |
| | $ | 1,224 |
| | 9.5 | % |
| Inland Empire, CA | | 213 |
| | $ | 156,561 |
| | $ | 24,264 |
| | $ | 180,825 |
| | $ | 38,516 |
| | 95.8 | % | | 16 |
| | 1,915 |
| | $ | 1,414 |
| | 9.4 | % |
| Raleigh, NC | | 240 |
| | $ | 145,011 |
| | $ | 7,997 |
| | $ | 153,008 |
| | $ | 36,722 |
| | 78.8 | % | | 9 |
| | 1,746 |
| | $ | 1,220 |
| | 9.8 | % |
| Indianapolis, IN | | 455 |
| | $ | 65,493 |
| | $ | 9,469 |
| | $ | 74,962 |
| | $ | 34,108 |
| | 80.0 | % | | 50 |
| | 1,351 |
| | $ | 821 |
| | 12.7 | % |
| Winston-Salem, NC | | 234 |
| | $ | 122,636 |
| | $ | 3,688 |
| | $ | 126,324 |
| | $ | 29,560 |
| | 88.5 | % | | 12 |
| | 1,426 |
| | $ | 1,094 |
| | 10.4 | % |
| Other California | | 80 |
| | $ | 110,753 |
| | $ | 21,841 |
| | $ | 132,594 |
| | $ | 10,608 |
| | 95.0 | % | | 36 |
| | 1,335 |
| | $ | 1,074 |
| | 9.7 | % |
| Las Vegas, NV | | 68 |
| | $ | 97,738 |
| | $ | 12,635 |
| | $ | 110,373 |
| | $ | 7,505 |
| | 85.3 | % | | 15 |
| | 1,553 |
| | $ | 1,043 |
| | 11.0 | % |
| Other MSA/Metro Divisions | | 248 |
| | $ | 140,842 |
| | $ | 7,792 |
| | $ | 148,634 |
| | $ | 36,861 |
| | 81.9 | % | | 10 |
| | 1,639 |
| | $ | 1,241 |
| | 10.2 | % |
| Total/Weighted Average | | 8,299 |
| | $ | 139,569 |
| | $ | 10,005 |
| | $ | 149,574 |
| | $ | 1,241,312 |
| | 79.3 | % | | 15 |
| | 1,861 |
| | $ | 1,256 |
| | 10.2 | % |
______________
| |
| (1) | Average purchase price includes broker commissions and closing costs. |
| |
| (2) | Represents average capital expenditures per home as of December 31, 2014. Does not include additional expected or future capital expenditures. |
| |
| (3) | Represents average purchase price plus average capital expenditures. |
| |
| (4) | Represents annualized average monthly rent per leased home as a percentage of the Company’s average investment (average purchase price per home plus average capital expenditures) per leased home. Does not include a provision for payment of ongoing property expenses (such as insurance, taxes, HOA fees and maintenance) or an allocation of the Company’s general and administrative expense, all of which materially impact the Company’s results. Accordingly, it should not be interpreted as a measure of profitability, and its utility in evaluating the Company’s business is limited. Average monthly rent for leased homes may not be indicative of average rents the Company may achieve on its vacant homes. |
AMERICAN RESIDENTIAL PROPERTIES, INC.
Portfolio of Preferred Operator Program Single-Family Homes—Summary Statistics
(unaudited)
The following table presents summary statistics of the Company’s portfolio of single-family homes that the Company’s preferred operators manage by MSA and metro division as of December 31, 2014, in descending order of aggregate investment.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| MSA/Metro Division | | Number of Homes | | Average Investment Per Home (1) | | Aggregate Investment (thousands) | | Percentage Leased (2) | | Average Age (years) | | Average Size (square feet) | | Average Monthly Rent Per Home Paid by Preferred Operator to Us (3) | | Annual Rent as a Percentage of Average Investment Per Home (4) |
| Chicago, IL | | 511 |
| | $ | 130,705 |
| | $ | 66,790 |
| | 100 | % | | 55 |
| | 1,406 |
| | $ | 794 |
| | 7.3 | % |
| Indianapolis, IN | | 83 |
| | $ | 47,302 |
| | $ | 3,926 |
| | 100 | % | | 59 |
| | 1,160 |
| | $ | 354 |
| | 9.0 | % |
| Total/Weighted Average | | 594 |
| | $ | 119,051 |
| | $ | 70,716 |
| | 100 | % | | 56 |
| | 1,372 |
| | $ | 733 |
| | 7.4 | % |
______________
| |
| (1) | Represents purchase price (including broker commissions and closing costs) paid by the Company for the portfolio divided by the number of homes in the portfolio and does not include past, expected or budgeted general and administrative expenses associated with ongoing monitoring activities of the Company’s investment. The preferred operator is obligated to pay for all taxes, insurance, other expenses and capital expenditures (including significant capital improvements) required for the management, operation and maintenance of the properties. Accordingly, absent a default by the preferred operator under a long-term lease agreement with the Company, the Company expects to incur no expenses related to properties under its preferred operator program, other than general and administrative expenses associated with ongoing monitoring activities of the Company’s investment. |
| |
| (2) | The Company classifies homes in its preferred operator program as 100% leased, because each preferred operator is obligated to pay the Company 100% of the base rent specified in the applicable lease irrespective of whether or not the homes are occupied by residential sub-tenants. This does not mean that 100% of the homes leased to preferred operators are occupied by residential sub-tenants. If a preferred operator is unable to lease a material portion of the homes it leases from the Company to residential sub-tenants, it may adversely affect such operator’s ability to pay rent to the Company under the lease. |
| |
| (3) | Represents the initial annual base rent payable to the Company by the preferred operator pursuant to the portfolio lease divided by 12 and then divided by the number of homes included in the lease. |
| |
| (4) | Represents annualized average monthly rent paid by the preferred operator to the Company as a percentage of the Company’s average investment per home. The rent paid by the preferred operator is net of all taxes, insurance, other expenses and capital expenses (including significant capital improvements) for which the preferred operator is responsible. |
AMERICAN RESIDENTIAL PROPERTIES, INC.
Total Portfolio of Stabilized(1) Single-Family Homes —Summary Statistics
(unaudited)
|
| | | | | | | | | | | | | | | | |
| MSA/Metro Division | | Number of Homes | | Average Investment Per Home (2) | | Homes Leased | | Homes Vacant (3) | | Percentage Leased |
| Phoenix, AZ | | 1,379 |
| | $ | 146,968 |
| | 1,279 |
| | 100 |
| | 92.7 | % |
| Houston, TX | | 1,092 |
| | $ | 148,475 |
| | 1,003 |
| | 89 |
| | 91.8 | % |
| Dallas-Fort Worth, TX | | 935 |
| | $ | 163,541 |
| | 867 |
| | 68 |
| | 92.7 | % |
| Nashville, TN | | 649 |
| | $ | 174,198 |
| | 605 |
| | 44 |
| | 93.2 | % |
| Atlanta, GA | | 632 |
| | $ | 136,960 |
| | 573 |
| | 59 |
| | 90.7 | % |
| Indianapolis, IN | | 513 |
| | $ | 71,286 |
| | 447 |
| | 66 |
| | 87.1 | % |
| Chicago, IL | | 511 |
| | $ | 130,705 |
| | 511 |
| | — |
| | 100.0 | % |
| Florida | | 460 |
| | $ | 128,852 |
| | 381 |
| | 79 |
| | 82.8 | % |
| Other Texas | | 361 |
| | $ | 177,648 |
| | 327 |
| | 34 |
| | 90.6 | % |
| Charlotte, NC-SC | | 259 |
| | $ | 154,975 |
| | 243 |
| | 16 |
| | 93.8 | % |
| Winston-Salem, NC | | 234 |
| | $ | 126,324 |
| | 207 |
| | 27 |
| | 88.5 | % |
| Raleigh, NC | | 218 |
| | $ | 150,292 |
| | 189 |
| | 29 |
| | 86.7 | % |
| Inland Empire, CA | | 213 |
| | $ | 180,825 |
| | 204 |
| | 9 |
| | 95.8 | % |
| Other California | | 80 |
| | $ | 132,594 |
| | 76 |
| | 4 |
| | 95.0 | % |
| Las Vegas, NV | | 67 |
| | $ | 110,821 |
| | 58 |
| | 9 |
| | 86.6 | % |
| Other MSA/Metro Divisions | | 238 |
| | $ | 148,285 |
| | 203 |
| | 35 |
| | 85.3 | % |
| Total/Weighted Average | | 7,841 |
| | $ | 145,185 |
| | 7,173 |
| | 668 |
| | 91.5 | % |
______________
| |
| (1) | Properties are considered stabilized when renovations have been completed and the properties have been leased or available for rent for a period of greater than 90 days. Includes properties with in-place leases at the date of acquisition. |
| |
| (2) | Represents average purchase price plus average capital expenditures. |
| |
| (3) | As of December 31, 2014, 493 homes were available for rent and 175 homes were undergoing renovation. |
AMERICAN RESIDENTIAL PROPERTIES, INC.
Portfolio of Self-Managed Stabilized(1) Single-Family Homes—Summary Statistics
(unaudited)
|
| | | | | | | | | | | | | | | |
| MSA/Metro Division | | Number of Homes | | Average Investment Per Home (2) | | Homes Leased | | Homes Vacant (3) | | Percentage Leased |
| Phoenix, AZ | | 1,379 |
| | 146,968 |
| | 1,279 |
| | 100 |
| | 92.7 | % |
| Houston, TX | | 1,092 |
| | 148,475 |
| | 1,003 |
| | 89 |
| | 91.8 | % |
| Dallas-Fort Worth, TX | | 935 |
| | 163,541 |
| | 867 |
| | 68 |
| | 92.7 | % |
| Nashville, TN | | 649 |
| | 174,198 |
| | 605 |
| | 44 |
| | 93.2 | % |
| Atlanta, GA | | 632 |
| | 136,960 |
| | 573 |
| | 59 |
| | 90.7 | % |
| Florida | | 460 |
| | 128,852 |
| | 381 |
| | 79 |
| | 82.8 | % |
| Indianapolis, IN | | 430 |
| | 75,915 |
| | 364 |
| | 66 |
| | 84.7 | % |
| Other Texas | | 361 |
| | 177,648 |
| | 327 |
| | 34 |
| | 90.6 | % |
| Charlotte, NC-SC | | 259 |
| | 154,975 |
| | 243 |
| | 16 |
| | 93.8 | % |
| Winston-Salem, NC | | 234 |
| | 126,324 |
| | 207 |
| | 27 |
| | 88.5 | % |
| Raleigh, NC | | 218 |
| | 150,292 |
| | 189 |
| | 29 |
| | 86.7 | % |
| Inland Empire, CA | | 213 |
| | 180,825 |
| | 204 |
| | 9 |
| | 95.8 | % |
| Other California | | 80 |
| | 132,594 |
| | 76 |
| | 4 |
| | 95.0 | % |
| Las Vegas, NV | | 67 |
| | 110,821 |
| | 58 |
| | 9 |
| | 86.6 | % |
| Other MSA/Metro Divisions | | 238 |
| | 148,285 |
| | 203 |
| | 35 |
| | 85.3 | % |
| Total/Weighted Average | | 7,247 |
| | 147,327 |
| | 6,579 |
| | 668 |
| | 90.8 | % |
______________
| |
| (1) | Properties are considered stabilized when renovations have been completed and the properties have been leased or available for rent for a period of greater than 90 days. Includes properties with in-place leases at the date of acquisition. |
| |
| (2) | Represents average purchase price plus average capital expenditures. |
| |
| (3) | As of December 31, 2014, 493 homes were available for rent and 175 homes were undergoing renovation. |
