Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'SILVER BAY REALTY TRUST CORP. | ' |
Entity Central Index Key | '0001557255 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 38,458,781 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments in real estate: | ' | ' |
Land | $140,402 | $137,349 |
Building and improvements | 655,479 | 638,955 |
Investments in real estate, gross | 795,881 | 776,304 |
Accumulated depreciation | -24,649 | -18,897 |
Investments in real estate, net | 771,232 | 757,407 |
Assets held for sale | 5,393 | 6,382 |
Cash | 40,761 | 43,717 |
Escrow deposits | 32,336 | 24,461 |
Resident security deposits | 7,386 | 6,848 |
In-place lease and deferred lease costs, net | 628 | 749 |
Deferred financing costs, net | 4,024 | 3,225 |
Other assets | 3,553 | 3,289 |
Total assets | 865,313 | 846,078 |
Liabilities: | ' | ' |
Revolving credit facility | 198,475 | 164,825 |
Accounts payable and accrued property expenses | 6,755 | 6,072 |
Resident prepaid rent and security deposits | 8,779 | 8,357 |
Amounts due to the manager and affiliates | 208 | 6,866 |
Amounts due previous owners | ' | 998 |
Total liabilities | 214,217 | 187,118 |
10% cumulative redeemable preferred stock, $.01 par; 50,000,000 authorized, 1,000 issued and outstanding | 1,000 | 1,000 |
Stockholders’ equity: | ' | ' |
Common stock $.01 par; 450,000,000 shares authorized; 38,458,865 and 38,561,468, respectively shares issued and outstanding | 383 | 385 |
Additional paid-in capital | 687,408 | 689,646 |
Accumulated other comprehensive loss | -362 | -276 |
Cumulative deficit | -37,333 | -31,795 |
Total equity | 650,096 | 657,960 |
Total liabilities and equity | $865,313 | $846,078 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Statement of Financial Position [Abstract] | ' | ' |
Cumulative redeemable preferred stock, stated dividend rate percentage (as a percent) | 10.00% | 10.00% |
10% cumulative redeemable preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
10% cumulative redeemable preferred stock, shares authorized | 50,000,000 | 50,000,000 |
10% cumulative redeemable preferred stock, shares issued | 1,000 | 1,000 |
10% cumulative redeemable preferred stock, shares outstanding | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 38,458,865 | 38,561,468 |
Common stock, shares outstanding | 38,458,865 | 38,561,468 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Rental income | $17,671 | $7,296 |
Other income | 460 | 385 |
Total revenue | 18,131 | 7,681 |
Expenses: | ' | ' |
Property operating and maintenance | 3,610 | 1,702 |
Real estate taxes | 2,486 | 1,420 |
Homeowners’ association fees | 304 | 281 |
Property management | 2,959 | 2,431 |
Depreciation and amortization | 6,145 | 3,518 |
Advisory management fee - affiliates | 2,201 | 2,852 |
General and administrative | 2,053 | 1,528 |
Interest expense | 2,327 | ' |
Other | 411 | 331 |
Total expenses | 22,496 | 14,063 |
Net loss | -4,365 | -6,382 |
Net loss attributable to noncontrolling interests - Operating Partnership | ' | 5 |
Net loss attributable to controlling interests | -4,365 | -6,377 |
Preferred stock distributions | -25 | -25 |
Net loss attributable to common stockholders | -4,390 | -6,402 |
Loss per share - basic and diluted: | ' | ' |
Net loss attributable to common shares (in dollars per share) | ($0.11) | ($0.16) |
Weighted average common shares outstanding (in shares) | 38,542,728 | 39,182,153 |
Comprehensive Loss: | ' | ' |
Net loss | -4,365 | -6,382 |
Other comprehensive loss: | ' | ' |
Change in fair value of interest rate cap derivatives | -86 | ' |
Other comprehensive loss | -86 | ' |
Comprehensive loss | -4,451 | -6,382 |
Less comprehensive loss attributable to noncontrolling interests - Operating Partnership | ' | 5 |
Comprehensive loss attributable to controlling interests | ($4,451) | ($6,377) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Cumulative Deficit |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at Dec. 31, 2013 | $657,960 | $385 | $689,646 | ($276) | ($31,795) |
Balance (in shares) at Dec. 31, 2013 | 38,561,468 | 38,561,468 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Non-cash equity awards, net | 198 | ' | 198 | ' | ' |
Non-cash equity awards, net (in shares) | ' | 53,054 | ' | ' | ' |
Repurchase of common stock | -2,438 | -2 | -2,436 | ' | ' |
Repurchase of common stock (in shares) | ' | -155,657 | ' | ' | ' |
Dividends declared | -1,173 | ' | ' | ' | -1,173 |
Net loss | -4,365 | ' | ' | ' | -4,365 |
Other comprehensive loss | -86 | ' | ' | -86 | ' |
Balance at Mar. 31, 2014 | $650,096 | $383 | $687,408 | ($362) | ($37,333) |
Balance (in shares) at Mar. 31, 2014 | 38,458,865 | 38,458,865 | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net loss | ($4,365) | ($6,382) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Depreciation and amortization | 6,145 | 3,518 |
Non-cash stock compensation | 198 | 288 |
Amortization of deferred financing costs | 460 | ' |
Other | 541 | 416 |
Net change in assets and liabilities: | ' | ' |
Increase in escrow cash for operating activities and reserves under the credit facility | -7,839 | -3,048 |
(Increase) decrease in deferred lease fees and other assets | -672 | 42 |
Increase in accounts payable, accrued property expenses, and prepaid rent | 465 | 442 |
Decrease in related party payables, net | -7,656 | -299 |
Net cash used by operating activities | -12,723 | -5,023 |
Cash Flows From Investing Activities: | ' | ' |
Purchase of investments in real estate | -13,065 | -141,744 |
Capital improvements of investments in real estate | -7,789 | -20,289 |
Increase in escrow cash for investing activities | -35 | -3,834 |
Proceeds from sale of real estate | 1,232 | 656 |
Other | -19 | -107 |
Net cash used by investing activities | -19,676 | -165,318 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from revolving credit facility | 33,650 | ' |
Deferred financing costs paid | -1,260 | -125 |
Purchase of interest rate cap agreements | -100 | ' |
Repurchase of common stock | -2,438 | ' |
Dividends paid | -409 | ' |
Proceeds from issuance of common stock, net of offering costs | ' | 34,530 |
Net cash provided by financing activities | 29,443 | 34,405 |
Net change in cash | -2,956 | -135,936 |
Cash at beginning of period | 43,717 | 228,139 |
Cash at end of period | 40,761 | 92,203 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 1,890 | ' |
Decrease in fair value of interest rate cap agreements | 86 | ' |
Noncash investing and financing activities: | ' | ' |
Common stock and unit dividends declared, but not paid | 1,150 | 392 |
Advisory management fee - additional basis | ' | 395 |
Capital improvements in accounts payable | $903 | $1,262 |
Organization_and_Operations
Organization and Operations | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Operations | ' |
Organization and Operations | |
Silver Bay Realty Trust Corp., or Silver Bay or the Company, is a Maryland corporation that focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. | |
As of March 31, 2014, the Company owned 5,748 single-family properties, excluding assets held for sale, in Phoenix, AZ, Tucson, AZ, Northern California (currently consisting of Contra Costa, Napa, and Solano counties), Southern California (currently consisting of Riverside and San Bernardino counties), Jacksonville, FL, Orlando, FL, Southeast Florida (currently consisting of Miami-Dade, Broward and Palm Beach counties), Tampa, FL, Atlanta, GA, Charlotte, NC, Las Vegas, NV, Columbus, OH, Dallas, TX, and Houston, TX. | |
The Company is the continuation of the operations of Silver Bay Property Investment LLC, or the Predecessor. At the time of its formation, the Predecessor was a wholly owned subsidiary of Two Harbors Investment Corp., or Two Harbors. The Predecessor began formal operations in February 2012, when it started acquiring single-family residential rental properties. The Company in its current form was created on December 19, 2012, through a series of formation transactions which included an initial public offering, the contribution of equity interests in the Predecessor by Two Harbors, and the acquisition of entities managed by Provident Real Estate Advisors LLC, or Provident, which owned 881 single-family properties, or the Provident Entities. | |
In connection with its initial public offering, or the Offering, the Company restructured its ownership to conduct its business through a traditional umbrella partnership, or UPREIT structure, in which substantially all of its assets are held by, and its operations are conducted through, Silver Bay Operating Partnership L.P., or the Operating Partnership, a Delaware limited partnership. The Company's wholly owned subsidiary, Silver Bay Management LLC, is the sole general partner of the Operating Partnership. As of March 31, 2014, the Company owned, through a combination of direct and indirect interests, 100% of the partnership interests in the Operating Partnership. | |
The Company has elected to be treated as a real estate investment trust, or REIT, for U.S. federal tax purposes, commencing with, and in connection with the filing of its federal tax return for, its taxable year ended December 31, 2012. As a REIT, the Company will generally not be subject to federal income tax on the taxable income that it distributes to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income tax at regular corporate rates. Even if it qualifies for taxation as a REIT, the Company may be subject to some federal, state and local taxes on its income or property. In addition, the income of any taxable REIT subsidiary, or TRS, that the Company owns will be subject to taxation at regular corporate rates. | |
The Company is externally managed by PRCM Real Estate Advisers LLC, or the Manager. The Manager is a joint venture between Provident and an affiliate of Pine River Capital Management L.P, or Pine River. The Company relies on the Manager to provide or obtain on its behalf the personnel and services necessary for it to conduct its business as the Company has no employees of its own. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation and Significant Accounting Policies | ' |
Basis of Presentation and Significant Accounting Policies | ' |
Basis of Presentation and Significant Accounting Policies | |
Consolidation and Basis of Presentation | |
The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted according to such SEC rules and regulations. Management believes, however, that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at March 31, 2014 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2014, may not be indicative of the results for a full year. | |
The accompanying condensed consolidated financial statements include the accounts of the Company and the Operating Partnership. The Company consolidates real estate partnerships and other entities that are not variable interest entities when it owns, directly or indirectly, a majority voting interest in the entity or is otherwise able to control the entity. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. The Company’s estimates are inherently subjective in nature and actual results could differ from these estimates. | |
Reclassifications | |
Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the results of operations or stockholders' equity. | |
Assets Held for Sale | |
The Company evaluates its long-lived assets on a regular basis to ensure the individual properties still meet its investment criteria. If the Company determines that an individual property no longer meets its investment criteria, a decision is made to dispose of the property. The property is subject to the Company’s impairment test and any losses are recognized immediately. The Company then markets the property for sale and classifies it as held for sale in the consolidated financial statements, with any material operations reported as discontinued operations. | |
The properties included in held for sale at March 31, 2014 did not have material leasing operations under the Company’s ownership. | |
For the three months ended March 31, 2014, the Company recognized $280 in impairment charges and $15 in net loss on sales of assets, along with certain operating costs on properties held for sale. For the three months ended March 31, 2013, the Company recognized $312 in impairment charges and $19 in net loss on sales of assets. These costs are classified as other in the condensed consolidated statements of operations and comprehensive loss. | |
Rent and Other Receivables, Net | |
The Company maintains an allowance for doubtful accounts for estimated losses that may result from the failure of residents to make required rent or other payments. The Company estimates this allowance based on payment history and current occupancy status. The Company generally does not require collateral or other security from its residents, other than security deposits. If estimates of collectability differ from the cash received, the timing and amount of the Company’s reported revenue could be impacted. | |
At March 31, 2014, and December 31, 2013, the Company had $498 and $665 in gross rent receivables, respectively, and $91 and $228 in allowances for doubtful accounts, respectively, classified as other assets on the condensed consolidated balance sheets. | |
Recent Accounting Pronouncements | |
Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, which amends the definition of a discontinued operation in Codification Topic Presentation of Financial Statements (“ASC 205”) to change the criteria for reporting discontinued operations and enhance disclosure requirements. Under ASU No. 2014-08, only disposals representing a strategic shift that has (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations. ASU No. 2014-08 is effective for interim or annual periods beginning on or after December 14, 2014, with early adoption permitted. The Company is currently assessing the impact, if any, the guidance will have upon adoption. |
Revolving_Credit_Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Revolving Credit Facility | ' |
Revolving Credit Facility | |
Certain of the Company's subsidiaries have a $350,000 revolving credit facility with a syndicate of banks. On January 16, 2014, the revolving credit facility was amended to increase the borrowing capacity from $200,000. The Company is able to draw up to 55% of the aggregate value of the eligible properties based on the lesser of (a) the third-party broker price opinion value or (b) the original purchase price plus certain renovation and other capitalized costs of the properties. The revolving credit facility matures on May 10, 2016 and bears interest at a varying rate of the London Interbank Offered Rate, or LIBOR, plus 3.50% subject to a LIBOR floor of 0.5%. The Company is also required to pay a monthly fee on the unused portion of the revolving credit facility at a rate of 0.5% per annum, which began to accrue 90 days following the closing of the revolving credit facility. The revolving credit facility may be used for the acquisition, financing, and renovation of properties and other general purposes. As of March 31, 2014 and December 31, 2013, $198,475 and $164,825 was outstanding under the revolving credit facility, respectively. The weighted average interest rate on the revolving credit facility as of and for the three months ended March 31, 2014, was 4.0%. In the three months ended March 31, 2014, the Company incurred $1,949 in gross interest expense on the revolving credit facility, before the effect of capitalizing interest related to property renovations. | |
All amounts outstanding under the revolving credit facility are collateralized by the equity interests and assets of certain of the Company’s subsidiaries, or pledged subsidiaries. The amounts outstanding under the revolving credit facility and certain obligations contained therein are guaranteed by the Company and the Operating Partnership only in the case of certain bad acts (including bankruptcy) and up to $20,000 for completion of certain property renovations, as outlined in the credit documents. | |
The pledged subsidiaries are separate legal entities, but continue to be reported in the Company’s consolidated financial statements. As long as the revolving credit facility is outstanding, the assets of the pledged subsidiaries are not available to satisfy the other debts and obligations of the pledged subsidiaries or the Company. However, the Company is permitted to receive distributions from the pledged subsidiaries as long as the Company and the pledged subsidiaries are current with all payments and in compliance with all other obligations under the revolving credit facility. | |
The revolving credit facility does not contractually restrict the Company’s ability to pay dividends but certain covenants contained therein may limit the amount of cash available for distribution. For example, in the final year of the revolving credit facility, all cash generated by the properties in the pledged subsidiaries must be used to pay down the principal amount outstanding under the revolving credit facility. The revolving credit facility requires the Company to meet certain quarterly financial tests pertaining to net worth, total liquidity, debt yield and debt service coverage ratios, as defined by the agreement. The Company must maintain, as defined by the agreement, total liquidity of $25,000 and a net worth of at least $125,000, as determined in accordance with the revolving credit facility agreement. As of March 31, 2014, and December 31, 2013, the Company satisfied the total liquidity requirement through maintaining a balance in excess of $25,000 in cash at the Company and the Operating Partnership. The revolving credit facility also provides for the restriction of cash whereby the Company must set aside funds for payment of insurance, property taxes and certain property operating and maintenance expenses associated with properties in the pledged subsidiaries' portfolios. As of March 31, 2014 and December 31, 2013 the Company had $16,639 and $12,216, respectively, included in escrow deposits associated with the required reserves. The agreement also contains customary events of default for a facility of this type, including payment defaults, covenant defaults, breaches of representations and warranties, bankruptcy and insolvency, judgments, change of control and cross-default with certain other indebtedness. | |
In connection with the revolving credit facility, the Manager’s operating subsidiary assigned the property management agreements it maintained with third parties to the Company. This means the Company incurs costs under those agreements that are payable directly to the third parties as opposed to paying such amounts to the Manager’s operating subsidiary as reimbursement. The Manager’s operating subsidiary remains obligated to oversee and manage the performance of these property managers. The Company also entered into separate property management agreements with the Manager’s operating subsidiary covering the properties pledged as part of the revolving credit facility. Pursuant to these agreements, the Company pays a property management fee equal to 10% of collected rents, which reduces its reimbursement obligations by an equal amount thus resulting in no net impact to the amount the Company pays the Manager’s operating subsidiary for property management services. | |
The Company capitalizes interest for properties undergoing renovation activities. Capitalized interest associated with the Company’s renovation activities totaled $82 for the three months ended March 31, 2014. | |
Costs incurred in the placement of the Company’s debt are being amortized using the straight-line method over the term of the related debt. For the three months ended March 31, 2014, the Company incurred additional deferred financing costs of $1,260 in connection with its revolving credit facility. Amortization expense for the three months ended March 31, 2014 was $460 and was recorded as interest expense in the accompanying condensed consolidated statements of operations and comprehensive loss. | |
Interest Rate Cap Agreements | |
The variable rate of interest on the revolving credit facility exposes the Company to interest rate risk. The Company seeks to manage this risk through the use of interest rate cap agreements. | |
As of December 31, 2013, the Company held two interest rate cap agreements with an aggregate notional amount of $170,000, LIBOR caps of 3.00%, and termination dates of May 10, 2016. The two interest rate cap agreements were purchased in the third quarter of 2013, at an aggregate purchase price of $533. On February 5, 2014, the Company entered into an additional interest rate cap agreement with a notional amount of $75,000, a LIBOR cap of 3.00%, and a termination date of May 10, 2016 at a purchase price of $100. Portions of the purchase prices of the interest rate cap agreements, representing the premiums paid to enter into the contracts, were capitalized as deferred financing costs and are being amortized using the straight-line method over the terms of the related agreements. The Company determined that the interest rate caps qualify for hedge accounting and, therefore, designated the derivatives as cash flow hedges with future changes in fair value recognized through other comprehensive loss (see Note 7). Ineffectiveness is calculated as the amount by which the change in fair value of the derivatives exceeds the change in the fair value of the anticipated cash flows related to the revolving credit facility. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Stockholders' Equity Note [Abstract] | ' | |||||
Stockholders' Equity | ' | |||||
Stockholders’ Equity | ||||||
Common Stock | ||||||
On December 19, 2012, the Company completed the Offering and raised approximately $228,517 in net proceeds through the issuance of 13,250,000 common shares. On January 7, 2013, the Company sold an additional 1,987,500 common shares and received net proceeds of approximately $34,388. | ||||||
On July 1, 2013, the Company’s Board of Directors authorized the Company to repurchase up to 2,500,000 shares of its common stock through a share repurchase program. Shares may be repurchased from time to time through privately negotiated transactions or open market transactions, pursuant to a trading plan in accordance with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, or by any combination of such methods. The manner, price, number and timing of share repurchases will be subject to a variety of factors, including market conditions and applicable SEC rules. In the three months ended March 31, 2014, 155,657 shares were repurchased by the Company under the program and retired for a total cost of $2,438, at an average purchase price of $15.66. | ||||||
In the first quarter of 2014, the Company issued, in aggregate, 58,841 shares of restricted common stock to certain officers and personnel of the Manager and the Manager's operating subsidiary. The average estimated fair value of these awards was $16.00 per share, based upon the closing price of the Company's stock on the dates prior to grant. These grants will vest in three equal installments commencing on the date of the grant, as long as the individual to whom the grant was made is an employee on the vesting date. | ||||||
Common Stock Dividends | ||||||
The following table presents cash dividends declared by the Company on its common stock since its formation: | ||||||
Declaration Date | Record Date | Payment Date | Cash Dividend | |||
per Share | ||||||
March 21, 2013 | April 1, 2013 | April 12, 2013 | $ | 0.01 | ||
June 20, 2013 | July 1, 2013 | July 12, 2013 | 0.01 | |||
September 19, 2013 | October 1, 2013 | October 11, 2013 | 0.01 | |||
December 19, 2013 | December 30, 2013 | January 10, 2014 | 0.01 | |||
March 13, 2014 | March 24, 2014 | April 4, 2014 | 0.03 | |||
Preferred Stock Dividends | ||||||
The following table presents cash dividends declared by the Company on its 10% cumulative redeemable preferred stock since its formation: | ||||||
Declaration Date | Payment Date | Cash Dividend | ||||
per Share | ||||||
March 21, 2013 | April 12, 2013 | $ | 31.39 | |||
June 26, 2013 | June 28, 2013 | 25 | ||||
September 19, 2013 | October 11, 2013 | 24.72 | ||||
December 19, 2013 | January 10, 2014 | 24.72 | ||||
April 2, 2014 | April 4, 2014 | 23.33 | ||||
The March 21, 2013 dividend declaration included amounts relating to the period from the date of the Formation Transactions through April 12, 2013. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings (Loss) Per Share | ' | |||||||
Earnings (Loss) Per Share | ||||||||
The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share, or EPS, for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended | Three Months Ended | |||||||
March 31, 2014 | March 31, 2013 | |||||||
Net loss attributable to controlling interests | $ | (4,365 | ) | $ | (6,377 | ) | ||
Preferred stock distributions | (25 | ) | (25 | ) | ||||
Net loss attributable to common stockholders | $ | (4,390 | ) | $ | (6,402 | ) | ||
Basic and diluted weighted average common shares outstanding | 38,542,728 | 39,182,153 | ||||||
Net loss per common share - basic and diluted | $ | (0.11 | ) | $ | (0.16 | ) | ||
A total of 27,459 common units were outstanding at March 31, 2013, but have been excluded from the calculation of diluted EPS as their inclusion would not be dilutive. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Advisory Management Agreement | |
The Company and the Manager maintain an advisory management agreement, whereby the Manager designs and implements the Company’s business strategy and administers its business activities and day-to-day operations, subject to oversight by the Company’s board of directors. In exchange for these services, the Manager earns a fee equal to 1.5% per annum, or 0.375% per quarter, of the Company’s daily average fully diluted market capitalization, as defined by the management agreement, calculated and payable quarterly in arrears. The fee is reduced for the 5% property management fee (described below) received by the Manager’s operating subsidiary or its affiliates under the property management and acquisition services agreement. The Company also reimburses the Manager for all expenses incurred on its behalf or otherwise in connection with the operation of its business, other than compensation for the Chief Executive Officer and personnel providing data analytics directly supporting the investment function. | |
As additional purchase price consideration in the Formation Transactions, the Company was required to make additional payments to Two Harbors and the prior members of the Provident Entities, equal to 50% of the advisory management fee payable to the Manager, during the first year after the Offering (before adjustment for any property management fees received by our Manager’s operating subsidiary). These payments reduced the amount owed to the Manager on a dollar-for-dollar basis and thus had no net impact on expenditures of the Company. | |
During the three months ended March 31, 2014, the Company expensed $2,201 in advisory management fees net of the reduction for the 5% property management fee described below. During the three months ended March 31, 2013, the Company expensed $2,852 in advisory management fees, of which $1,354, $1,103, and $395 were payable to the Manager, Two Harbors and the prior members of the Provident Entities, respectively. | |
As of March 31, 2014, the Company had $208 outstanding related to the advisory management fee and reflected in amounts due to the manager and affiliates on the condensed consolidated balance sheets. As of December 31, 2013, the Company had $1,181 outstanding and reflected in amounts due to the manager and affiliates and $998 in amounts due to previous owners on the condensed consolidated balance sheets related to advisory fees expensed in the prior year. | |
The Company also reimbursed the Manager for certain general and administrative expenses, primarily related to employee compensation and certain office costs. Direct and allocated costs incurred by the Manager on behalf of the Company totaled approximately $1,339 and $810 for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014 and December 31, 2013, the Company owed $0 and $1,480, respectively, for these costs which are included in amounts due to the manager and affiliates on the condensed consolidated balance sheets. | |
Property Management and Acquisition Services Agreement | |
The Company and the Manager’s operating subsidiary maintain a property management and acquisition services agreement pursuant to which the Manager’s operating subsidiary acquires and manages single-family properties on the Company’s behalf. For these services, the Company reimburses the Manager’s operating subsidiary for all direct expenses incurred in the operation of its business, including the compensation of its employees. The Manager’s operating subsidiary also receives a property management fee equal to 5% of certain costs and expenses incurred by it in the operation of its business that are reimbursed by the Company. This 5% property management fee reduces the advisory management fee paid to the Manager on a dollar-for-dollar basis. | |
During the three months ended March 31, 2014 and 2013, the Company incurred property management expense of $2,959 and $2,431, respectively. These amounts included direct expense reimbursements of $1,980 and $1,908, respectively, and the 5% property management fee of $111 and $146, respectively. The remaining amounts in property management fees of $868 and $377, respectively, were incurred to reimburse our Manager’s operating subsidiary for expenses payable to third-party property managers (or for the three months ended March 31, 2014, as payments due directly to third-party property managers) and direct property management type expenses such as stock compensation to employees dedicated to property management. In addition, the Company incurred charges with the Manager’s operating subsidiary of $229 and $1,314, respectively, in acquisitions and renovation fees, which the Company capitalized as part of property acquisition and renovation costs and $11 and $32, respectively, for leasing services, which are reflected as other assets and are being amortized over the life of the leases (typically one year or less). | |
As of March 31, 2014 and December 31, 2013, the Company owed $0 and $4,205, respectively, for these services which are included in amounts due to the manager and affiliates on the condensed consolidated balance sheets. |
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair Value | ' | ||||||||||||||||||
Fair Value | |||||||||||||||||||
Codification Topic Fair Value Measurements and Disclosures (“ASC 820”) established a three level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: | |||||||||||||||||||
Level 1 — Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||
Level 2 — Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | |||||||||||||||||||
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |||||||||||||||||||
Recurring Fair Value | |||||||||||||||||||
The Company uses interest rate cap agreements to manage its exposure to interest rate risk (refer to Note 3). The interest rate cap agreements are valued using models developed by the respective counterparty that use as their basis readily observable market parameters (such as forward yield curves). | |||||||||||||||||||
The following tables provide a summary of the aggregate fair value measurements for the interest rate cap agreements and the location within the condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, respectively: | |||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
Description | Balance Sheet Location | March 31, 2014 | Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1) | Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Interest Rate Caps (Cash Flow Hedges) | Other Assets | $ | 181 | $ | — | $ | 181 | $ | — | ||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
Description | Balance Sheet Location | December 31, 2013 | Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1) | Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Interest Rate Caps (Cash Flow Hedges) | Other Assets | $ | 214 | $ | — | $ | 214 | $ | — | ||||||||||
The following table provides a summary of the effect of cash flow hedges on the Company's condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2014: | |||||||||||||||||||
Effective Portion | Ineffective Portion | ||||||||||||||||||
Type of Cash Flow Hedge | Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative | Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | ||||||||||||||
Interest Rate Caps | $ | (86 | ) | Interest Expense | — | N/A | — | ||||||||||||
As of March 31, 2014 and December 31, 2013 there were approximately $362 and $276, respectively, in deferred losses in accumulated other comprehensive loss related to interest rate cap agreements. The Company expects to recognize approximately $44 in interest expense during the twelve months ending March 31, 2015, which will be reclassified out of accumulated other comprehensive loss in accordance with the amortization schedules established upon designation of the interest rate caps as cash flow hedges. | |||||||||||||||||||
Nonrecurring Fair Value | |||||||||||||||||||
For long-lived assets held for sale, an impairment loss is recognized when the estimated fair value of the asset, less the estimated cost to sell, is less than the carrying amount of the asset at the time the Company has determined to sell the asset. Assets held for sale are valued based on comparable sales data, less estimates of third-party broker commissions, which are gathered from the markets (see Note 2). These impairment measurements constitute nonrecurring fair value measures under ASC 820 and the inputs are characterized as Level 2. | |||||||||||||||||||
Fair Value of Other Financial Instruments | |||||||||||||||||||
In accordance with ASC 820, the Company is required to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the condensed consolidated balance sheets, for which fair value can be estimated. The following describes the Company’s methods for estimating the fair value for financial instruments. Descriptions are not provided for those items that have zero balances as of March 31, 2014. | |||||||||||||||||||
• | Cash, escrow deposits, resident prepaid rent and security deposits, resident rent receivable (included in other assets), accounts payable and accrued property expenses, and amounts due to the manager and affiliates have carrying values which approximate fair value because of the short-term nature of these instruments. The Company categorizes the fair value measurement of these assets and liabilities as Level 1. | ||||||||||||||||||
• | The Company’s revolving credit facility has a floating interest rate based on an index plus a spread and the credit spread is consistent with those demanded in the market for facilities with similar risk and maturities. Accordingly, the interest rate on this borrowing is at market and thus the carrying value of the debt approximates fair value. The Company categorizes the fair value measurement of this liability as Level 2. | ||||||||||||||||||
• | The Company’s 10% cumulative redeemable preferred stock had a fair value which approximates its liquidation value at March 31, 2014 and December 31, 2013. The Company categorizes the fair value measurement of this instrument as Level 2. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Concentrations | |
As of March 31, 2014, approximately 58% of the Company’s properties were located in Phoenix, AZ, Tampa, FL, and Atlanta, GA, which exposes the Company to greater economic risks than if the Company owned a more geographically dispersed portfolio. | |
Resident security deposits | |
As of March 31, 2014, the Company had $7,386 in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease. | |
Earnest deposits | |
Escrow deposits include non-refundable cash or earnest deposits for the purchase of properties. As of March 31, 2014, the Company had earnest deposits for property purchases of $208. As of March 31, 2014, for properties acquired through individual broker transactions which involve submitting a purchase offer, the Company had offers accepted to purchase residential properties for an aggregate amount of $8,019. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons. | |
Legal and Regulatory | |
From time to time, the Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company's business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company's condensed consolidated financial statements and, therefore, no accrual has been recorded as of March 31, 2014. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Events subsequent to March 31, 2014 were evaluated through the date these financial statements were issued and no events were identified requiring further disclosure in these condensed consolidated financial statements. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation and Significant Accounting Policies | ' |
Consolidation and Basis of Presentation | ' |
Consolidation and Basis of Presentation | |
The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles, or GAAP, have been condensed or omitted according to such SEC rules and regulations. Management believes, however, that the disclosures included in these interim condensed consolidated financial statements are adequate to make the information presented not misleading. The accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, all normal and recurring adjustments necessary to present fairly the financial condition of the Company at March 31, 2014 and results of operations for all periods presented have been made. The results of operations for the three months ended March 31, 2014, may not be indicative of the results for a full year. | |
Principles of Consolidation | ' |
The accompanying condensed consolidated financial statements include the accounts of the Company and the Operating Partnership. The Company consolidates real estate partnerships and other entities that are not variable interest entities when it owns, directly or indirectly, a majority voting interest in the entity or is otherwise able to control the entity. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that may affect the reported amounts and disclosures in the financial statements. The Company’s estimates are inherently subjective in nature and actual results could differ from these estimates. | |
Reclassifications | ' |
Reclassifications | |
Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the results of operations or stockholders' equity. | |
Assets Held for Sale | ' |
Assets Held for Sale | |
The Company evaluates its long-lived assets on a regular basis to ensure the individual properties still meet its investment criteria. If the Company determines that an individual property no longer meets its investment criteria, a decision is made to dispose of the property. The property is subject to the Company’s impairment test and any losses are recognized immediately. The Company then markets the property for sale and classifies it as held for sale in the consolidated financial statements, with any material operations reported as discontinued operations. | |
The properties included in held for sale at March 31, 2014 did not have material leasing operations under the Company’s ownership. | |
For the three months ended March 31, 2014, the Company recognized $280 in impairment charges and $15 in net loss on sales of assets, along with certain operating costs on properties held for sale. For the three months ended March 31, 2013, the Company recognized $312 in impairment charges and $19 in net loss on sales of assets. These costs are classified as other in the condensed consolidated statements of operations and comprehensive loss. | |
Rent and Other Receivables, Net | ' |
Rent and Other Receivables, Net | |
The Company maintains an allowance for doubtful accounts for estimated losses that may result from the failure of residents to make required rent or other payments. The Company estimates this allowance based on payment history and current occupancy status. The Company generally does not require collateral or other security from its residents, other than security deposits. If estimates of collectability differ from the cash received, the timing and amount of the Company’s reported revenue could be impacted. | |
At March 31, 2014, and December 31, 2013, the Company had $498 and $665 in gross rent receivables, respectively, and $91 and $228 in allowances for doubtful accounts, respectively, classified as other assets on the condensed consolidated balance sheets. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Under the Jumpstart Our Business Startups Act, or the JOBS Act, the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, which amends the definition of a discontinued operation in Codification Topic Presentation of Financial Statements (“ASC 205”) to change the criteria for reporting discontinued operations and enhance disclosure requirements. Under ASU No. 2014-08, only disposals representing a strategic shift that has (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations. ASU No. 2014-08 is effective for interim or annual periods beginning on or after December 14, 2014, with early adoption permitted. The Company is currently assessing the impact, if any, the guidance will have upon adoption. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Common Stock Dividends | ' | |||||
Stockholders' equity | ' | |||||
Schedule of cash dividends declared by the Company since its formation | ' | |||||
Declaration Date | Record Date | Payment Date | Cash Dividend | |||
per Share | ||||||
March 21, 2013 | April 1, 2013 | April 12, 2013 | $ | 0.01 | ||
June 20, 2013 | July 1, 2013 | July 12, 2013 | 0.01 | |||
September 19, 2013 | October 1, 2013 | October 11, 2013 | 0.01 | |||
December 19, 2013 | December 30, 2013 | January 10, 2014 | 0.01 | |||
March 13, 2014 | March 24, 2014 | April 4, 2014 | 0.03 | |||
Preferred Stock Dividends | ' | |||||
Stockholders' equity | ' | |||||
Schedule of cash dividends declared by the Company since its formation | ' | |||||
Declaration Date | Payment Date | Cash Dividend | ||||
per Share | ||||||
March 21, 2013 | April 12, 2013 | $ | 31.39 | |||
June 26, 2013 | June 28, 2013 | 25 | ||||
September 19, 2013 | October 11, 2013 | 24.72 | ||||
December 19, 2013 | January 10, 2014 | 24.72 | ||||
April 2, 2014 | April 4, 2014 | 23.33 | ||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Summary of elements used in calculating basic and diluted EPS computations | ' | |||||||
Three Months Ended | Three Months Ended | |||||||
March 31, 2014 | March 31, 2013 | |||||||
Net loss attributable to controlling interests | $ | (4,365 | ) | $ | (6,377 | ) | ||
Preferred stock distributions | (25 | ) | (25 | ) | ||||
Net loss attributable to common stockholders | $ | (4,390 | ) | $ | (6,402 | ) | ||
Basic and diluted weighted average common shares outstanding | 38,542,728 | 39,182,153 | ||||||
Net loss per common share - basic and diluted | $ | (0.11 | ) | $ | (0.16 | ) |
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair value measurements for interest rate cap agreements and location within condensed consolidated balance sheets | ' | ||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
Description | Balance Sheet Location | March 31, 2014 | Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1) | Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Interest Rate Caps (Cash Flow Hedges) | Other Assets | $ | 181 | $ | — | $ | 181 | $ | — | ||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||
Description | Balance Sheet Location | December 31, 2013 | Quoted Prices (Unadjusted) for Identical Assets/Liabilities (Level 1) | Quoted Prices for Similar Assets and Liabilities in Active Markets (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Interest Rate Caps (Cash Flow Hedges) | Other Assets | $ | 214 | $ | — | $ | 214 | $ | — | ||||||||||
Summary of effect of cash flow hedges | ' | ||||||||||||||||||
Effective Portion | Ineffective Portion | ||||||||||||||||||
Type of Cash Flow Hedge | Amount of Gain/(Loss) Recognized in Other Comprehensive Loss on Derivative | Location of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Location of Gain/(Loss) Recognized in Income on Derivative | Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | ||||||||||||||
Interest Rate Caps | $ | (86 | ) | Interest Expense | — | N/A | — | ||||||||||||
Organization_and_Operations_De
Organization and Operations (Details) | Mar. 31, 2014 | Dec. 19, 2012 | Mar. 31, 2014 |
employee | Provident Real Estate Advisors LLC | Silver Bay Operating Partnership L.P. | |
property | property | ||
Organization and operations | ' | ' | ' |
Number of single-family properties owned | 5,748 | 881 | ' |
Direct and indirect partnership interests in Operating Partnership | ' | ' | 100.00% |
Number of employees | 0 | ' | ' |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Assets Held for Sale | ' | ' | ' |
Impairment charges | $280 | $312 | ' |
Net loss on sales of assets | 15 | 19 | ' |
Rent and Other Receivables, Net | ' | ' | ' |
Gross rent receivables | 498 | ' | 665 |
Allowances for doubtful accounts | $91 | ' | $228 |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jan. 16, 2014 | Dec. 31, 2013 | Feb. 05, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
agreement | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Property Management Agreements | ||||
Interest rate caps | Interest rate caps | Interest rate caps | Company and Operating Partnership | Company and Operating Partnership | Minimum | Revolving Credit Facility | ||||||||
Company and Operating Partnership | ||||||||||||||
Revolving Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt instruments | ' | ' | ' | ' | $350,000 | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount allowed to be drawn under credit facility as a percentage of aggregate value of eligible properties | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate basis | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, variable interest rate floor (as a percent) | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly fee on the unused portion of the credit facility (as a percent) | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of accrual from closing of credit facility to pay monthly fee on unused portion of credit facility | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding under the credit facility | 198,475 | ' | 164,825 | ' | 198,475 | ' | 164,825 | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate at period end (as a percent) | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross interest expense | ' | ' | ' | ' | 1,949 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount guaranteed for completion of certain property renovations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' |
Total liquidity to be maintained as defined by the agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' |
Net worth to be maintained as defined by the agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' |
Total liquidity requirement maintained | 40,761 | 92,203 | 43,717 | 228,139 | ' | ' | ' | ' | ' | ' | 25,000 | 25,000 | ' | ' |
Escrow deposits | ' | ' | ' | ' | 16,639 | ' | 12,216 | ' | ' | ' | ' | ' | ' | ' |
Property management fee as percentage of collected rents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Capitalized interest associated with renovation activities | ' | ' | ' | ' | 82 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional deferred financing costs | ' | ' | ' | ' | 1,260 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | 460 | ' | ' | ' | 460 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate cap agreements | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate notional amount | ' | ' | ' | ' | ' | ' | ' | 75,000 | 170,000 | ' | ' | ' | ' | ' |
Variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' |
LIBOR cap (as a percent) | ' | ' | ' | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' | ' |
Aggregate purchase price | $100 | ' | ' | ' | ' | ' | ' | $100 | ' | $533 | ' | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jan. 07, 2013 | Dec. 19, 2012 |
Stockholders' Equity Note [Abstract] | ' | ' |
Net proceeds from the Offering | ' | $228,517 |
Common stock issued (in shares) | 1,987,500 | 13,250,000 |
Net proceeds from issuance of common stock | $34,388 | ' |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (Share repurchase program, USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Jul. 02, 2013 |
Share repurchase program | ' | ' |
Share Repurchase Plan | ' | ' |
Number of shares authorized to be repurchased | ' | 2,500,000 |
Number of shares repurchased | 155,657 | ' |
Value of shares repurchased | $2,438 | ' |
Average purchase price (in dollars per share) | $15.66 | ' |
Stockholders_Equity_Details_3
Stockholders' Equity (Details 3) (Equity incentive plan, Restricted common stock, Certain personnel of the entity's Manager or the Manager's operating subsidiary, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
installment | |
Equity incentive plan | Restricted common stock | Certain personnel of the entity's Manager or the Manager's operating subsidiary | ' |
Equity incentive plan | ' |
Total number of shares issued | 58,841 |
Estimated fair value of awards on grant date (in dollars per share) | $16 |
Number of annual installments in which grants will vest | 3 |
Stockholders_Equity_Details_4
Stockholders' Equity (Details 4) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||
Mar. 13, 2014 | Jan. 10, 2014 | Dec. 19, 2013 | Oct. 11, 2013 | Sep. 19, 2013 | Jul. 12, 2013 | Jun. 28, 2013 | Jun. 26, 2013 | Jun. 20, 2013 | Apr. 12, 2013 | Mar. 21, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 04, 2014 | Apr. 02, 2014 | |
Subsequent event | Subsequent event | ||||||||||||||
Common and Preferred Stock Dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend per share declared, common stock (in dollars per share) | $0.03 | ' | $0.01 | ' | $0.01 | ' | ' | ' | $0.01 | ' | $0.01 | ' | ' | ' | ' |
Cash dividend per share paid, common stock (in dollars per share) | ' | $0.01 | ' | $0.01 | ' | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | $0.03 | ' |
Cumulative redeemable preferred stock, stated dividend rate percentage (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% | ' | ' |
Cash dividend per share declared, preferred stock (in dollars per share) | ' | ' | $24.72 | ' | $24.72 | ' | ' | $25 | ' | ' | $31.39 | ' | ' | ' | $23.33 |
Cash dividend per share paid, preferred stock (in dollars per share) | ' | $24.72 | ' | $24.72 | ' | ' | $25 | ' | ' | $31.39 | ' | ' | ' | $23.33 | ' |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Calculation of basic and diluted earnings (loss) per share | ' | ' |
Net loss attributable to controlling interests | ($4,365) | ($6,377) |
Preferred stock distributions | -25 | -25 |
Net loss attributable to common stockholders | ($4,390) | ($6,402) |
Basic and diluted weighted average common shares outstanding | 38,542,728 | 39,182,153 |
Net loss per common share - basic and diluted (in dollars per share) | ($0.11) | ($0.16) |
Number of common units excluded from the calculation of diluted EPS as their inclusion would not be dilutive (in shares) | ' | 27,459 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Related Party Transactions | ' | ' | ' |
Advisory management fee expense | $2,201 | $2,852 | ' |
Amounts due to the manager and affiliates | 208 | ' | 6,866 |
Amounts due previous owners | ' | ' | 998 |
Property management expense | 2,959 | 2,431 | ' |
Manager | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Direct and allocated costs expensed | 1,339 | 810 | ' |
Amounts due to the manager and affiliates | 0 | ' | 1,480 |
Advisory Management Agreement | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Advisory management fee expense | 2,201 | 2,852 | ' |
Amounts due to the manager and affiliates | 208 | ' | 1,181 |
Amounts due previous owners | ' | ' | 998 |
Advisory Management Agreement | Two Harbors and Provident Entities | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Percentage of advisory management fee payable in first year due as additional purchase price consideration | 50.00% | ' | ' |
Advisory Management Agreement | Provident Real Estate Advisors LLC | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Advisory management fee expense | ' | 395 | ' |
Advisory Management Agreement | Manager | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Annual advisory management fee as a percentage of entity's daily average fully diluted market capitalization | 1.50% | ' | ' |
Quarterly advisory management fee as a percentage of entity's daily average fully diluted market capitalization | 0.38% | ' | ' |
Property management fee percentage, deducted from advisory fee | 5.00% | ' | ' |
Advisory management fee expense | ' | 1,354 | ' |
Advisory Management Agreement | Two Harbors Investment Corp | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Advisory management fee expense | ' | 1,103 | ' |
Property Management and Acquisition Services Agreement | Manager's operating subsidiary | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Amounts due to the manager and affiliates | 0 | ' | 4,205 |
Direct expense reimbursements | 1,980 | 1,908 | ' |
Property management fee | 111 | 146 | ' |
Portion of property management fee related to reimbursement of or direct payment due to third-party managers | 868 | 377 | ' |
Acquisitions and renovation fees | 229 | 1,314 | ' |
Fee for leasing services | $11 | $32 | ' |
Amortization period for leases | '1 year | ' | ' |
Fair_Value_Details
Fair Value (Details) (Other Assets [Member], Fair Value, Measurements, Recurring, Interest Rate Cap, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total | ' | ' |
Recurring Fair Value | ' | ' |
Interest Rate Caps (Cash Flow Hedges) | $181 | $214 |
Level 2 | ' | ' |
Recurring Fair Value | ' | ' |
Interest Rate Caps (Cash Flow Hedges) | $181 | $214 |
Fair_Value_Details_2
Fair Value (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Fair Value of Other Financial Instruments | ' | ' |
Cumulative redeemable preferred stock, stated dividend rate percentage (as a percent) | 10.00% | 10.00% |
Interest Rate Cap | ' | ' |
Effect of cash flow hedges | ' | ' |
Interest expense to be recognized within next twelve months which will be reclassified out of accumulated other comprehensive loss | 44 | ' |
Cash Flow Hedging | Interest Rate Cap | ' | ' |
Effect of cash flow hedges | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income Loss on Derivative | -86 | ' |
Deferred losses in accumulated other comprehensive loss | 362 | 276 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Real estate properties, Geographically dispersed portfolio, Phoenix, AZ, Tampa, FL, and Atlanta, GA) | 3 Months Ended |
Mar. 31, 2014 | |
Real estate properties | Geographically dispersed portfolio | Phoenix, AZ, Tampa, FL, and Atlanta, GA | ' |
Concentrations | ' |
Concentration (as a percent) | 58.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Resident security deposits | ' |
Resident security deposits | $7,386 |
Earnest deposits | ' |
Amount of property purchases for which earnest deposits have been made | 208 |
Aggregate amount of offers accepted to purchase residential properties | $8,019 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 3) (Threatened Litigation, USD $) | Mar. 31, 2014 |
Threatened Litigation | ' |
Legal and Regulatory | ' |
Liability for legal claims | $0 |