Front Yard Residential Corporation (“Front Yard” or the “Company”)
(NYSE:RESI) today announced financial and operating results for the
first quarter of 2018.
First Quarter 2018 Highlights and Recent
Developments
- Rental revenues increased by 14% to $39.8 million compared to
$34.9 million for the fourth quarter of 2017.
- Stabilized Rental Net Operating Income Margin was 65.2%.1
- Stabilized Rental Core Funds from Operations was $0.16 per
diluted share.1
- 94.3% of stabilized rentals were leased at March 31, 2018.
- Full-company Core Funds from Operations was $0.05 per diluted
share.1
- 320 remaining legacy REOs, down 35% from 490 at December 31,
2017.
- 65% of funding had fixed or capped rates and 78% had maturities
of over 3.5 years.
“We are pleased to report strong results this quarter,” said
Chief Executive Officer, George Ellison. “As we continue to focus
on growth opportunities, final disposition of legacy assets and
maintaining our excellent operating metrics, we expect to see
continued improvement in our numbers.”
First Quarter 2018 Financial Results
GAAP net loss for the first quarter of 2018 totaled $27.4
million, or $0.51 per diluted share, compared to a net loss of
$49.4 million, or $0.92 per diluted share, for the first quarter of
2017.
Webcast and Conference Call
The Company expects to host a webcast and conference call on
Tuesday, May 8, 2018, at 8:30 a.m. Eastern Time to discuss its
financial results for the first quarter of 2018. The conference
call will be webcast live over the internet from the Company’s
website at www.frontyardresidential.com and can be accessed by
clicking on the “Investors” link.
About Front Yard Residential Corporation
Front Yard is an industry leader in providing quality,
affordable rental homes to America’s families. Our homes offer
exceptional value in a variety of suburban communities which have
easy accessibility to metropolitan areas. Front Yard's tenants
enjoy the space and comfort that is unique to single-family
housing, at reasonable prices. Our mission is to provide our
tenants with houses they are proud to call home. Additional
information is available at www.frontyardresidential.com.
________________1 Stabilized Rental Net Operating
Income Margin, Stabilized Rental Core Funds from Operations, and
full-company Core Funds from Operations are non-GAAP measures.
Refer to the Reconciliation of Non-GAAP Financial Measures section
for further information and reconciliation to U.S. GAAP net
loss.
Forward-looking Statements
This press release contains 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, regarding management’s beliefs, estimates, projections,
anticipations and assumptions with respect to, among other things,
the Company’s financial results, future operations, business plans
and investment strategies as well as industry and market
conditions. These statements may be identified by words such as
“anticipate,” “intend,” “expect,” “may,” “could,” “should,”
“would,” “plan,” “estimate,” “seek,” “believe” and other
expressions or words of similar meaning. We caution that
forward-looking statements are qualified by the existence of
certain risks and uncertainties that could cause actual results and
events to differ materially from what is contemplated by the
forward-looking statements. Factors that could cause the Company's
actual results to differ materially from these forward-looking
statements may include, without limitation, our ability to
implement our business strategy; our ability to make distributions
to stockholders; our ability to complete potential transactions in
accordance with anticipated terms and on a timely basis or at all;
the Company's ability to integrate newly acquired rental assets
into the portfolio; difficulties in identifying single-family
properties to acquire; the impact of changes to the supply of,
value of and the returns on single-family rental properties; the
Company’s ability to acquire single-family rental properties
generating attractive returns; the Company’s ability to sell
residential mortgage assets or non-rental real estate owned on
favorable terms or at all; the Company’s ability to predict costs;
the Company’s ability to effectively compete with competitors;
changes in interest rates; changes in the market value of
single-family properties; the Company’s ability to obtain and
access financing arrangements on favorable terms or at all; the
Company’s ability to deploy the net proceeds from financings or
asset sales to acquire target assets in a timely manner or at all;
the Company’s ability to retain the exclusive engagement of
Altisource Asset Management Corporation; the failure of Altisource
Portfolio Solutions S.A. and its affiliates to effectively perform
their obligations under various agreements with the Company; the
failure of Main Street Renewal, LLC to effectively perform under
its property management agreement with the Company; the Company's
failure to qualify or maintain qualification as a REIT; the
Company’s failure to maintain its exemption from registration under
the Investment Company Act of 1940, as amended; the impact of
adverse real estate, mortgage or housing markets; the impact of
adverse legislative or regulatory tax changes and other risks and
uncertainties detailed in the “Risk Factors” and other sections
described from time to time in the Company's current and future
filings with the Securities and Exchange Commission. In addition,
financial risks such as liquidity, interest rate and credit risks
could influence future results. The foregoing list of factors
should not be construed as exhaustive.
The statements made in this press release are current as of the
date of this press release only. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements or any other information contained herein, whether as a
result of new information, future events or otherwise.
Front Yard Residential
CorporationCondensed Consolidated Statements of
Operations(In thousands, except share and per
share amounts)(Unaudited)
|
Three months ended March 31, |
|
2018 |
|
2017 |
Revenues: |
|
|
|
Rental revenues |
$ |
39,765 |
|
|
$ |
25,618 |
|
Change in unrealized
gain on mortgage loans |
— |
|
|
(51,865 |
) |
Net realized gain on
mortgage loans |
— |
|
|
35,550 |
|
Net realized gain on
sales of real estate |
— |
|
|
19,956 |
|
Interest income |
— |
|
|
79 |
|
Total
revenues |
39,765 |
|
|
29,338 |
|
Expenses: |
|
|
|
Residential property
operating expenses |
16,792 |
|
|
18,259 |
|
Real estate
depreciation and amortization |
19,190 |
|
|
15,174 |
|
Acquisition fees and
costs |
33 |
|
|
167 |
|
Selling costs and
impairment |
7,575 |
|
|
14,220 |
|
Mortgage loan servicing
costs |
355 |
|
|
6,245 |
|
Interest expense |
16,063 |
|
|
15,572 |
|
Share-based
compensation |
(414 |
) |
|
1,914 |
|
General and
administrative |
2,673 |
|
|
2,322 |
|
Management fees to
AAMC |
3,790 |
|
|
4,815 |
|
Total
expenses |
66,057 |
|
|
78,688 |
|
Operating
loss |
(26,292 |
) |
|
(49,350 |
) |
Net loss on real estate
and mortgage loans |
(1,634 |
) |
|
— |
|
Other income |
576 |
|
|
— |
|
Loss
before income taxes |
(27,350 |
) |
|
(49,350 |
) |
Income tax expense |
— |
|
|
7 |
|
Net
loss |
$ |
(27,350 |
) |
|
$ |
(49,357 |
) |
|
|
|
|
Loss per share
of common stock - basic: |
|
|
|
Loss per basic
share |
$ |
(0.51 |
) |
|
$ |
(0.92 |
) |
Weighted average common
stock outstanding - basic |
53,454,063 |
|
|
53,646,291 |
|
Loss per share
of common stock - diluted: |
|
|
|
Loss per diluted
share |
$ |
(0.51 |
) |
|
$ |
(0.92 |
) |
Weighted average common
stock outstanding - diluted |
53,454,063 |
|
|
53,646,291 |
|
|
|
|
|
Dividends declared per
common share |
$ |
0.15 |
|
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
Front Yard Residential
CorporationCondensed Consolidated Balance
Sheets(In thousands, except share and per share
amounts)
|
March 31,2018 |
|
December 31,2017 |
|
(unaudited) |
|
|
Assets: |
|
|
|
Real estate held for
use: |
|
|
|
Land |
$ |
321,656 |
|
|
$ |
322,062 |
|
Rental
residential properties |
1,394,118 |
|
|
1,381,110 |
|
Real
estate owned |
50,782 |
|
|
64,036 |
|
Total
real estate held for use |
1,766,556 |
|
|
1,767,208 |
|
Less: accumulated
depreciation |
(90,251 |
) |
|
(73,655 |
) |
Total
real estate held for use, net |
1,676,305 |
|
|
1,693,553 |
|
Real estate assets held
for sale |
45,344 |
|
|
75,718 |
|
Mortgage loans at fair
value |
10,274 |
|
|
11,477 |
|
Cash and cash
equivalents |
115,068 |
|
|
113,666 |
|
Restricted cash |
40,983 |
|
|
47,822 |
|
Accounts receivable,
net |
21,894 |
|
|
19,555 |
|
Prepaid expenses and
other assets |
11,249 |
|
|
12,758 |
|
Total
assets |
$ |
1,921,117 |
|
|
$ |
1,974,549 |
|
|
|
|
|
Liabilities: |
|
|
|
Repurchase and loan
agreements |
$ |
1,253,720 |
|
|
$ |
1,270,157 |
|
Accounts payable and
accrued liabilities |
54,496 |
|
|
55,639 |
|
Related party
payables |
4,027 |
|
|
4,151 |
|
Total
liabilities |
1,312,243 |
|
|
1,329,947 |
|
|
|
|
|
Commitments and
contingencies |
— |
|
|
— |
|
|
|
|
|
Equity: |
|
|
|
Common stock, $0.01 par
value, 200,000,000 authorized shares; 53,492,137 shares issued and
outstanding as of March 31, 2018 and 53,447,950 shares issued and
outstanding as of December 31, 2017 |
535 |
|
|
534 |
|
Additional paid-in
capital |
1,181,019 |
|
|
1,181,327 |
|
Accumulated
deficit |
(572,680 |
) |
|
(537,259 |
) |
Total
equity |
608,874 |
|
|
644,602 |
|
Total
liabilities and equity |
$ |
1,921,117 |
|
|
$ |
1,974,549 |
|
|
Front Yard Residential
CorporationRegulation G Requirement:
Reconciliation of Non-GAAP Financial Measures(In
thousands, except share and per share
amounts)(Unaudited)
In evaluating Front Yard’s financial performance, management
reviews Core Funds from Operations (“Core FFO”), Stabilized Rental
Net Operating Income Margin (“Stabilized Rental NOI Margin”) and
Stabilized Rental Core Funds from Operations (“Stabilized Rental
Core FFO”), which exclude certain items from Front Yard’s U.S. GAAP
(generally accepted accounting principles) results. Core FFO,
Stabilized Rental NOI Margin and Stabilized Rental Core FFO are
non-GAAP performance measures that Front Yard believes are useful
to assist investors in gaining an understanding of the trends and
operating metrics for Front Yard’s core business. These non-GAAP
measures should be viewed in addition to, and not in lieu of, Front
Yard’s reported results under U.S. GAAP.
The following provides related definitions of, and a
reconciliation of Front Yard’s U.S. GAAP results to, FFO, Core FFO,
Stabilized Rental Core FFO and Stabilized Rental NOI Margin for the
periods presented:
Stabilized Rental: We define a property as
stabilized once it has been renovated and then initially leased or
available for rent for a period greater than 90 days. All other
homes are considered non-stabilized. Homes are considered
stabilized even after subsequent resident turnover. However, homes
may be removed from the stabilized home portfolio and placed in the
non-stabilized home portfolio due to renovation during the home
lifecycle or because they are identified for sale.
FFO, Core FFO, Stabilized Rental FFO and Stabilized
Rental Core FFO: Funds from Operations (“FFO”) is a
supplemental performance measure of an equity real estate
investment trust (“REIT”) used by industry analysts and investors
in order to facilitate meaningful comparisons between periods and
among peer companies. FFO is defined by the National Association of
Real Estate Investment Trusts (“NAREIT”) as GAAP net income or loss
excluding gains or losses from sales of property, impairment
charges on real estate and depreciation and amortization on real
estate assets adjusted for unconsolidated partnerships and jointly
owned investments.
We believe that FFO of our total operations and of our
stabilized rental portfolio (“Stabilized Rental FFO”) is a
meaningful supplemental measure of our overall operating
performance and the operating performance of our stabilized rental
portfolio, respectively, because historical cost accounting for
real estate assets in accordance with GAAP assumes that the value
of real estate assets diminishes predictably over time, as
reflected through depreciation. Because real estate values have
historically risen or fallen with market conditions, management
considers FFO and Stabilized Rental FFO an appropriate supplemental
performance measure because it excludes historical cost
depreciation, impairment charges and gains or losses related to
sales of previously depreciated homes from GAAP net income. By
excluding depreciation, impairment and gains or losses on sales of
real estate, FFO and Stabilized Rental FFO provide measures of our
returns on our investments in real estate assets. However, because
both FFO and Stabilized Rental FFO exclude depreciation and
amortization and capture neither the changes in the value of the
homes that result from use or market conditions nor the level of
capital expenditures to maintain the operating performance of the
homes, all of which have real economic effect and could materially
affect our results from operations, the utility of FFO and
Stabilized Rental FFO as measures of our performance is
limited.
Our Core FFO and Stabilized Rental Core FFO begin with FFO and
Stabilized Rental FFO, respectively, and are adjusted for
share-based compensation; acquisition fees and costs; non-cash
interest expense related to deferred debt issuance costs,
amortization of loan discounts and mark-to-market adjustments on
interest rate derivatives and other non-comparable items, as
applicable. We believe that Core FFO and Stabilized Rental Core
FFO, when used in conjunction with the results of operations under
GAAP, are meaningful supplemental measures of our operating
performance for the same reasons as FFO and Stabilized Rental FFO
and are further helpful as they provide a consistent measurement of
our performance across reporting periods by removing the impact of
certain items that are not comparable from period to period.
Although management believes that FFO, Core FFO, Stabilized
Rental FFO and Stabilized Rental Core FFO increase our
comparability with other companies, these measures may not be
comparable to the FFO or Core FFO of other companies because 1)
other companies may adopt a definition of FFO other than the NAREIT
definition, may apply a different method of determining Core FFO or
may utilize metrics other than or in addition to Core FFO and 2) in
the case of Stabilized Rental FFO and Stabilized Rental Core FFO,
we base these measures only on our stabilized rental portfolio.
The following table provides a reconciliation of net loss as
determined in accordance with U.S. GAAP to full-company Core
FFO:
|
|
Three months ended March 31, 2018 |
GAAP net loss |
|
$ |
(27,350 |
) |
|
|
|
Adjustments to
determine FFO: |
|
|
Real estate
depreciation and amortization |
|
19,190 |
|
Selling costs and
impairment |
|
7,575 |
|
Net loss on real estate
and mortgage loans |
|
1,634 |
|
FFO |
|
1,049 |
|
|
|
|
Adjustments to
determine Core FFO: |
|
|
Acquisition fees and
costs |
|
33 |
|
Non-cash interest
expense |
|
1,526 |
|
Share-based
compensation |
|
(414 |
) |
Other adjustments |
|
307 |
|
Core
FFO |
|
$ |
2,501 |
|
|
|
|
Weighted average common
stock outstanding - basic and diluted
|
|
53,454,063 |
|
FFO per share - basic
and diluted |
|
$ |
0.02 |
|
Core FFO per share -
basic and diluted |
|
$ |
0.05 |
|
The following table provides a reconciliation of net loss as
determined in accordance with U.S. GAAP to Stabilized Rental Core
FFO:
|
|
Three months ended March 31, 2018 |
GAAP net loss |
|
$ |
(27,350 |
) |
|
|
|
Adjustments to
determine Stabilized Rental FFO: |
|
|
Net loss on real estate
and mortgage loans |
|
1,634 |
|
Residential property
operating expenses on non-stabilized rentals and REOs |
|
2,972 |
|
Real estate
depreciation and amortization |
|
19,190 |
|
Selling costs and
impairment |
|
7,575 |
|
Mortgage loan servicing
costs |
|
355 |
|
Other expenses
allocable to mortgage loans, non-stabilized rentals and REOs |
|
2,130 |
|
Stabilized Rental FFO |
|
6,506 |
|
|
|
|
Adjustments to
determine Stabilized Rental Core FFO: |
|
|
Conversion fees |
|
63 |
|
Non-cash interest
expense |
|
1,346 |
|
Share-based
compensation |
|
(307 |
) |
Other adjustments |
|
722 |
|
Stabilized Rental Core FFO |
|
$ |
8,330 |
|
|
|
|
Weighted average common
stock outstanding - basic and diluted |
|
53,454,063 |
|
|
|
|
Stabilized Rental Core
FFO per share - basic and diluted |
|
$ |
0.16 |
|
Stabilized Rental Net Operating Income (“Stabilized
Rental NOI”) and Stabilized Rental NOI Margin: Stabilized
Rental NOI is a non-GAAP supplemental measure that we define as
rental revenues less residential property operating expenses of the
stabilized rental properties in our rental portfolio. We define
Stabilized Rental NOI Margin as Stabilized Rental NOI divided by
rental revenues.
We consider Stabilized Rental NOI and Stabilized Rental NOI
Margin to be meaningful supplemental measures of operating
performance because they reflect the operating performance of our
stabilized properties without allocation of corporate level
overhead or general and administrative costs, acquisition fees and
other similar costs and provide insight to the ongoing operations
of our business. These measures should be used only as supplements
to and not substitutes for net income or loss or net cash flows
from operating activities as determined in accordance with GAAP.
These net operating income measures should not be used as
indicators of funds available to fund cash needs, including
distributions and dividends. Although we may use these non-GAAP
measures to compare our performance to other REITs, not all REITs
may calculate these non-GAAP measures in the same way, and there is
no assurance that our calculation is comparable with that of other
REITs. While management believes that our calculations are
reasonable, there is no standard calculation methodology for
Stabilized Rental NOI Margin, and different methodologies could
produce materially different results.
The following table provides a reconciliation of net loss as
determined in accordance with U.S. GAAP to Stabilized Rental NOI
and Stabilized Rental NOI Margin:
|
|
Three months ended March 31, 2018 |
GAAP net loss |
|
$ |
(27,350 |
) |
|
|
|
Adjustments: |
|
|
Net loss on real estate
and mortgage loans |
|
1,634 |
|
Residential property
operating expenses on non-stabilized rentals and REOs |
|
2,972 |
|
Real estate
depreciation and amortization |
|
19,190 |
|
Acquisition fees and
costs |
|
33 |
|
Selling costs and
impairment |
|
7,575 |
|
Mortgage loan servicing
costs |
|
355 |
|
Interest expense |
|
16,063 |
|
Share-based
compensation |
|
(414 |
) |
General and
administrative |
|
2,673 |
|
Management fees to
AAMC |
|
3,790 |
|
Other income |
|
(576 |
) |
Stabilized Rental NOI |
|
$ |
25,945 |
|
|
|
|
Rental revenues |
|
$ |
39,765 |
|
Stabilized Rental NOI
Margin |
|
65.2 |
% |
FOR FURTHER
INFORMATION CONTACT: |
Robin N. Lowe |
Chief Financial
Officer |
T: +1-345-815-9919 |
E:
Robin.Lowe@AltisourceAMC.com |
Kelly Strategic (NYSE:RESI)
Graphique Historique de l'Action
De Juil 2024 à Août 2024
Kelly Strategic (NYSE:RESI)
Graphique Historique de l'Action
De Août 2023 à Août 2024