Silver Bay Realty Trust Corp. Reports Fourth Quarter 2012 Financial Results
Silver Bay Realty Trust Corp. Reports Fourth Quarter 2012 Financial Results
Completed Initial Public Offering and Formation Transactions, Acquired
Portfolio of Over 3,400 Single-Family Properties
Business Wire
NEW YORK -- February 28, 2013
Silver Bay Realty Trust Corp. (NYSE: SBY) or “Silver Bay,” or “the Company,” a
real estate investment trust that focuses on the acquisition, renovation,
leasing and management of single-family properties, today announced its
financial results for the quarter ended December 31, 2012.
Highlights
* Completed an initial public offering, which resulted in net proceeds of
approximately $263.3 million (including proceeds of approximately $34.8
million attributable to the exercise of the underwriters’ overallotment
option on January 7, 2013)
* Managed portfolio of over 3,400 single-family properties located in ten
markets across seven states as of December 31, 2012
* Realized an average monthly rent per leased property of $1,148
* Held cash and cash equivalents of $228.1 million and $19.7 million in
escrow deposits
“We are proud to be the first publicly traded, single-family property REIT,”
said David N. Miller, Silver Bay’s President and Chief Executive Officer.
“Silver Bay is capitalizing on a generational opportunity to acquire
undervalued single-family properties in markets with strong demographic and
macroeconomic indicators. Additionally, we continue to build our institutional
platform in order to grow our business and capture operational efficiencies.”
Financial Results
Silver Bay reported fourth quarter 2012 total revenue of $2.8 million. Net
loss attributable to common stockholders for the fourth quarter was $3.2
million, or ($0.04) per diluted share.
Formation and Financial Presentation
Concurrently with Silver Bay’s initial public offering, the Company completed
a series of merger and contribution transactions through which Silver Bay
acquired Two Harbors Property Investment LLC (now Silver Bay Property
Investment LLC), or its Predecessor, and entities managed by Provident Real
Estate Advisors LLC, or the Provident Entities. Silver Bay’s Predecessor is
considered the acquiring or surviving entity for accounting purposes. Given
Silver Bay’s formation date of December 19, 2012, the financial results for
the fourth quarter and full year of 2012 reflect an abbreviated operating
period of twelve days for the Provident Entities in addition to the full year
financial performance of its Predecessor.
The historical balances of Silver Bay’s Predecessor have been reflected at
carryover basis in Silver Bay’s consolidated financial statements for 2012.
The assets and liabilities of the Provident Entities’ have been recorded at
their fair value upon acquisition.
In the first quarter of 2012, Silver Bay’s Predecessor began acquiring a
portfolio of single-family properties. A substantial number of these
properties did not generate revenue for the fourth quarter and full year of
2012 as they were still in the stabilization phase, or the period before a
property becomes income producing.
Portfolio Summary and Operating Metrics
Silver Bay managed a portfolio of 3,405 single-family properties as of
December 31, 2012. During the fourth quarter, Silver Bay and its Predecessor
acquired 857 properties in the fourth quarter, exclusive of the acquisition of
the 881 properties owned by the Provident Entities. The Company achieved an
occupancy rate of 96% and an average monthly rent of $1,148 on 1,779
properties that were stabilized as of December 31, 2012. Silver Bay reported
an occupancy rate of 83% and an average monthly rent of $1,143 on 1,583
properties that were owned for a minimum of six months. A total of 1,705
single-family properties of the aggregate portfolio were leased as of December
31, 2012, resulting in an occupancy rate of 50%. The occupancy rate of the
aggregate portfolio is not indicative of the portfolio’s expected performance
due to the significant number of recently acquired properties and those still
in the stabilization phase. A summary of Silver Bay’s occupancy rates in
addition to Silver Bay’s supplementary definition of stabilized properties are
included in the financial and operating tables accompanying this press
release.
Public Stock Offerings
On December 19, 2012, Silver Bay completed an initial public offering of
common stock. The offering resulted in the issuance of 13,250,000 shares of
common stock for net proceeds of approximately $228.5 million. Subsequent to
quarter end, Silver Bay issued an additional 1,987,500 shares of common stock
pursuant to the underwriters’ over-allotment option for net proceeds of
approximately $34.8 million. Silver Bay intends to use the net proceeds from
these offerings to purchase additional single-family properties, to renovate
such properties for rental to residents and for working capital.
First Quarter 2012 Conference Schedule
The Company is scheduled to participate in an upcoming investor conference in
New York City. On March 7, 2013, Silver Bay will attend the Goldman Sachs
Equity Housing Conference at the Conrad New York. During the conference, the
Silver Bay management team may discuss the current operating environment of
the Company, as well as overall business strategy and property acquisitions.
Conference Call
Silver Bay will host a conference call on March 1, 2013 at 9:00 a.m. EST to
discuss fourth quarter 2012 financial results and business highlights. To
participate in the teleconference, please call toll-free (888) 317-6016 (or
(412) 317-6016 for international callers and (855) 669-9657 for Canadian
callers) approximately 10 minutes prior to the above start time. You may also
listen to the teleconference live via the Internet on the Company's website at
www.silverbayrealtytrustcorp.com in the Investor Relations section under the
Events Calendar link. For those unable to attend, a telephone playback will be
available beginning at 12:00 p.m. EST on March 1, 2013 through 9:00 p.m. EST
on March 18, 2013. The playback can be accessed by calling (877) 344-7529 (or
(412) 317-0088 for international callers) and providing Conference Number
10024964. The call will also be archived on the Company's website in the
Investor Relations section under the Events Calendar link.
About Silver Bay Realty Trust Corp.
Silver Bay Realty Trust Corp. is a Maryland corporation focused on the
acquisition, renovation, leasing and management of single-family properties
for rental income and long-term capital appreciation. Silver Bay owns
single-family properties in Arizona, California, Florida, Georgia, Nevada,
North Carolina, Ohio and Texas. Silver Bay intends to elect and qualify to be
taxed as a REIT.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. Actual results may differ from expectations, estimates and
projections and, consequently, readers should not rely on these
forward-looking statements as predictions of future events. Words such as
“expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,”
“predicts,” “potential,” “continue,” and similar expressions are intended to
identify such forward-looking statements. These forward looking statements
involve significant risks and uncertainties that could cause actual results to
differ materially from expected results. Factors that could cause actual
results to differ include: adverse economic or real estate developments in
Silver Bay’s target markets; defaults on, early terminations of or non-renewal
of leases by residents; difficulties in identifying properties to acquire and
completing acquisitions; increased time and/or expense to gain possession and
renovate properties; Silver Bay’s failure to successfully operate its
properties; Silver Bay’s ability to obtain financing arrangements; general
volatility of the markets in which it participates; interest rates and the
market value of Silver Bay’s target assets; the impact of changes in
governmental regulations, tax law and rates, and similar matters.
Readers are cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. Silver Bay does not
undertake or accept any obligation to release publicly any updates or
revisions to any forward-looking statement to reflect any change in its
expectations or any change in events, conditions or circumstances on which any
such statement is based. Additional information concerning these and other
risk factors is contained in Silver Bay’s most recent filings with the
Securities and Exchange Commission. All subsequent written and oral forward
looking statements concerning Silver Bay or matters attributable to Silver Bay
or any person acting on its behalf are expressly qualified in their entirety
by the cautionary statements above.
Additional Information
Stockholders of Silver Bay, and other interested persons, may find additional
information regarding the Company at the SEC's Internet site at www.sec.gov or
by directing requests to: Silver Bay Realty Trust Corp., Attn: Investor
Relations, 601 Carlson Parkway, Suite 250, Minnetonka, MN 55305, telephone
(952) 358-4400.
SILVER BAY REALTY TRUST CORP.
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2012
(amounts in thousands except share data)
Assets
Investments in real estate: (unaudited)
Land $ 82,310
Building and improvements 338,252
420,562
Accumulated depreciation (1,869 )
Investments in real estate, net 418,693
Cash and cash equivalents 228,139
Escrow deposits 19,727
Resident security deposits 2,266
In-place lease and deferred lease costs, net 2,363
Other assets 6,114
Total Assets $ 677,302
Liabilities and Equity
Liabilities:
Accounts payable and accrued property expenses $ 4,550
Resident prepaid rent and security deposits 2,713
Amounts due to the manager and affiliates 3,071
Amounts due previous owners 6,555
Total liabilities 16,889
10% cumulative redeemable preferred stock, $.01 par; 1,000
50,000,000 authorized, 1,000 issued and outstanding
Equity:
Stockholders' Equity:
Common stock $.01 par; 450,000,000 shares authorized; 372
37,328,213 shares issued and outstanding
Additional paid-in capital 664,146
Cumulative deficit (5,609 )
Total Stockholders' Equity 658,909
Noncontrolling interests - Operating Partnership 504
Total Equity 659,413
Total Liabilities and Equity $ 677,302
SILVER BAY REALTY TRUST CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2012
(amounts in thousands except share data)
Three Months Ended
December 31, 2012 Year Ended 2012
(unaudited) (unaudited)
Revenue:
Rental income $ 2,757 $ 3,584
Other income 32 32
Total revenue 2,789 3,616
Expenses:
Property operating and 1,195 1,971
maintenance
Real estate taxes 747 1,273
Homeowner's association fees 229 391
Property management 395 459
Depreciation and amortization 1,528 2,003
Advisory management fee - 1,355 2,159
affiliates
General and administrative 585 881
Total expenses 6,034 9,137
Net loss (3,245 ) (5,521 )
Net loss attributable to
noncontrolling interests - 4 4
Operating Partnership
Net loss attributable to (3,241 ) (5,517 )
controlling interests
Preferred stock distributions (3 ) (3 )
Net loss attributable to common $ (3,244 ) $ (5,520 )
stockholders
Loss per share – basic and
diluted^(1)
Net loss attributable to common $ (0.04 ) $ (0.04 )
shares
Weighted average common shares 37,328,213 37,328,213
outstanding
Silver Bay calculated the 2012 loss per share only for the period its
common stock was outstanding during the year, referred to as the
post-formation period. Prior to its initial public offering and
(1) formation transactions, Silver Bay did not have any publicly issued
common stock. The formation transactions closed on December 19, 2012,
therefore Silver Bay has defined the post-formation period to be the
date of the formation transactions through December 31, 2012, or
twelve days of activity.
SILVER BAY REALTY TRUST CORP.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE QUARTER ENDED DECEMBER 31, 2012
(amounts in thousands except share data)
(unaudited)
Common Stock
Noncontrolling
Par Additional Total Interests-
Shares Value Paid-In Cumulative Stockholders' Operating Parent Total
Issued Amount Capital Deficit Equity Partnership Equity Equity
Balance at
October 1, $ - $ - $ (2,367 ) $ (2,367 ) $ - $ 250 $ (2,117 )
2012
Parent
contributions
through - 321,773 321,773
December 19,
2012
Net proceeds
from Initial 13,250,000 133 228,384 228,517 228,517
Public
Offering
Formation 23,917,642 239 435,713 - 435,952 508 (322,023 ) 114,437
Transactions
Restricted 160,571 - - -
stock issued
Other 49 49 49
Net loss (3,242 ) (3,242 ) (4 ) (3,246 )
Balance at
December 31, 37,328,213 $ 372 $ 664,146 $ (5,609 ) $ 658,909 $ 504 $ - $ 659,413
2012
SILVER BAY REALTY TRUST CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2012
(amounts in thousands)
Three Months Ended
December 31, 2012 Year Ended 2012
(unaudited) (unaudited)
Cash Flows From Operating
Activities:
Net loss $ (3,244) $ (5,521)
Adjustments to reconcile net
loss to net cash (used) /
provided
by operating activities:
Depreciation and amortization 1,528 2,003
Non-cash stock option 38 38
compensation
Net change in assets and
liabilities:
Increase in related party 2,500 3,693
payables, net
(Decrease) / Increase in
deferred lease fees and prepaid (523) 61
rents
Increase in other assets (1,354) (1,996)
Increase in accounts payable 797 3,324
and accrued property expenses
Net cash (used) / provided by (258) 1,602
operating activities
Cash Flows From Investing
Activities:
Purchase of investments in real (97,955) (276,730)
estate
Capital improvements of (17,937) (30,527)
investments in real estate
Decrease / (Increase) in escrow 15,005 (18,955)
cash
Net cash used by investing (100,887) (326,212)
activities
Cash Flows From Financing
Activities:
Capital contribution of parent, 97,982 323,982
net
Proceeds from issuance of
common stock, net of offering 228,517 228,517
costs
Net cash provided by financing 326,499 552,499
activities
Net change in cash and cash 225,354 227,889
equivalents
Cash and cash equivalents at 2,785 250
beginning of the period
Cash and cash equivalents at $ 228,139 $ 228,139
end of the period
Noncash investing and financing
activities:
Accrued preferred stock $ (3) $ (3)
dividends
Capital improvements in $ 680 $ 680
accounts payable
Formation Transactions $ 126,083 $ 126,083
PORTFOLIO SUMMARY OF SINGLE-FAMILY PROPERTIES
The following table provides a summary of Silver Bay’s portfolio of single-family properties as of December 31, 2012.
Average Average
Monthly
Aggregate Cost Basis Average Average Number of Number Rent for
Number of Cost Per Age^(2) Square Leased of Vacant Leased
Basis^(1) Property
Market Properties (thousands) (thousands) (in Footage Properties Properties^(3) Properties^(4)
years)
Phoenix 1,002 $ 127,308 $ 127 17.9 1,717 592 410 $ 1,041
Tampa 816 99,779 122 21.9 1,675 401 415 1,261
Atlanta 607 67,674 111 14.9 2,089 313 294 1,191
Northern 256 43,323 169 40.6 1,418 113 143 1,457
CA^(5)
Las Vegas 213 27,255 128 13.4 1,742 77 136 1,151
Tucson 186 14,334 77 38.8 1,343 112 74 828
Southern 149 18,161 122 38.6 1,364 13 136 1,208
CA^(6)
Orlando 90 13,001 144 18.0 1,889 71 19 1,318
Charlotte 60 7,181 120 9.7 2,035 12 48 1,058
Dallas 26 2,546 98 17.8 1,784 1 25 1,250
Totals 3,405 $ 420,562 $ 124 21.7 1,727 1,705 1,700 $ 1,148
Aggregate cost includes all capitalized costs, determined in
accordance with GAAP, incurred through December 31, 2012 for the
acquisition, stabilization, and significant post-stabilization
renovations of properties, including land, building, possession costs
and renovation costs. Aggregate cost does not include accumulated
(1) depreciation. At completion of the Formation Transactions, Silver Bay
Predecessor’s properties were recorded at an aggregated carryover net
book value cost basis. The Provident Entities’ properties aggregated
cost basis was $117.9 million, which represents the fair market value
of properties at the formation date due to the contribution of
Provident Entities’ property being considered an acquisition subject
to purchase accounting for accounting purposes.
As of December 31, 2012, approximately 29% of the properties in the
combined portfolio were less than 10 years old, 27% were between 10
(2) and 20 years old, 16% were between 20 and 30 years old, 15% were
between 30 and 40 years old, 5% were between 40 and 50 years old, and
8% were more than 50 years old.
A significant portion of the properties were purchased within the last
six months and are still undergoing stabilization. Silver Bay defines
stabilized properties as those that we have acquired, renovated,
(3) marketed and leased for the first time. Properties acquired with
in-place leases are considered stabilized. Total number of vacant
properties includes properties in the process of stabilization as well
as those available for lease.
Average monthly rent for leased properties was calculated as the
average of the contracted monthly rent for all leased properties as of
December 31, 2012. To date, rent concessions have been utilized on a
(4) limited basis and have not had a significant impact on Silver Bay’s
average monthly rent. If the use of rent concessions or other leasing
incentives increases in the future, they may have a greater impact by
reducing the average monthly rent we receive from leased properties.
(5) Northern California market currently consists of Contra Costa, Napa,
Sacramento and Solano Counties.
(6) Southern California market currently consists of Colton, Riverside and
San Bernardino Counties.
PORTFOLIO SUMMARY OF STABILIZED PROPERTIES AND THOSE OWNED SIX MONTHS OR LONGER
The following table summarizes Silver Bay’s stabilized properties and those owned six months or longer as of December 31, 2012.
Stabilized Properties Properties Owned at Least Six Months
Average
Average Monthly
Monthly Rent for
Rent for Properties Properties
Number of Leased Owned Six Owned at
Stabilized Properties Properties Occupancy Stabilized Months or Properties Properties Occupancy Least Six
Market Properties^(1) Leased Vacant Rate Properties^(2) Longer Leased Vacant Rate Months^(3)
Phoenix 648 592 56 91 % $ 1,041 551 481 70 87 % $ 1,030
Tampa 409 401 8 98 % 1,261 426 359 67 84 % 1,258
Atlanta 318 313 5 98 % 1,191 302 243 59 80 % 1,185
Northern CA 113 113 - 100 % 1,457 52 35 17 67 % 1,554
Las Vegas 81 77 4 95 % 1,151 101 57 44 56 % 1,155
Tucson 112 112 - 100 % 828 78 76 2 97 % 828
Southern CA 13 13 - 100 % 1,208 21 10 11 48 % 1,209
Orlando 72 71 1 99 % 1,318 52 51 1 98 % 1,357
Charlotte^(4) 12 12 - 100 % 1,058 - - - - -
Dallas^(4) 1 1 - 100 % 1,250 - - - - -
Totals 1,779 1,705 74 96 % $ 1,148 1,583 1,312 271 83 % $ 1,143
Silver Bay defines stabilized properties as those that the Company has
(1) acquired, renovated, marketed and leased for the first time.
Properties acquired with in-place leases are considered stabilized.
Average monthly rent for leased stabilized properties was calculated
as the average of the contracted monthly rent for all stabilized
properties as of December 31, 2012. To date, rent concessions have
(2) been utilized on a limited basis and have not had a significant impact
on Silver Bay’s average monthly rent. If the use of rent concessions
or other leasing incentives increases in the future, they may have a
greater impact by reducing the average monthly rent we receive from
leased properties.
Average monthly rent for properties owned at least six months was
calculated as the average of the contracted monthly rent for all
properties owned at least six months as of December 31, 2012. To date,
(3) rent concessions have been utilized on a limited basis and have not
had a significant impact on Silver Bay’s average monthly rent. If the
use of rent concessions or other leasing incentives increases in the
future, they may have a greater impact by reducing the average monthly
rent we receive from leased properties.
(4) As of December 31, 2012, there were no properties owned six months or
longer in these markets.
Contact:
Silver Bay Realty Trust Corp.
Anh Huynh, 952-358-4400
Director of Investor Relations
ahuynh@silverbaymgmt.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement
Rate this Page