Reven Housing REIT, Inc. Reports Full Year 2017 Results
April 02 2018 - 7:00AM
Business Wire
Reven Housing REIT, Inc. (the “Company”, “Reven Housing”,
“RVEN”) (NASDAQ: RVEN), an owner and operator of single-family
residential property, today reported financial results for the
year-end December 31, 2017.
2017 Highlights
- Reported net loss of $1.83 million or
$(0.17) per share compared to a net loss of $1.77 million or
$(0.22) per share in the prior year period
- Increased Core FFO to $869,609 or $0.08
per share as compared to a $255,608 or $0.03 per share in the prior
year period
- Increased rental income by 38.4%
year-over-year to $7.82 million primarily due to the acquisition of
175 single family homes during the twelve months ended December 31,
2017
- Achieved portfolio occupancy of
91.2%
- Acquired 175 single family homes in
Atlanta, Georgia, Birmingham Alabama, and Memphis Tennessee for
approximately $12.9 million
Chad Carpenter, Chief Executive Officer of Reven Housing REIT
stated, “Our progress in 2017 was driven by the successful purchase
and integration of an additional 175 homes. We are working hard to
find additional accretive acquisitions to continue to scale our
platform. As we look ahead to 2018, Reven will be increasingly
focused on optimizing its capital structure to provide additional
capacity to grow.” Mr. Carpenter continued, “As the single family
home REITs enter their fifth year in the public markets, the sector
has matured as an institutional asset class. This large sector
remains highly fragmented, which should provide Reven with
additional opportunities to grow shareholder value.”
2017 Financial Results
- For the year-ended December 31, 2017,
total rental income increased 38.4% to $7.82 million, primarily due
to the acquisition of 175 rental homes during the year. At
year-end, the company owned 799 rental homes.
- Net Operating Income or “NOI” for the
year ended December 31, 2017 was $4.26 million or 54.5% of rental
revenue compared to NOI of $3.09 million or 54.7% of rental revenue
for the year ended December 31, 2016.
- Net loss for the year was $1.83 million
or $(0.17) per share compared to a net loss of $1.77 or $(0.22) per
share in 2016. The decrease in per share loss while the overall
loss was larger is due to a higher share count associated with the
Company’s public offering in 2016. During the year ended December
31, 2017, the Company incurred net casualty losses of $462,179 due
to damages to our homes from Hurricane Harvey and Irma. Excluding
the impact of the casualty losses from Hurricanes Harvey and Irma,
the net loss would have been approximately $1.37 million or ($0.13)
per share.
Operations, Acquisitions and
Dispositions and Balance Sheet
At the end of the fourth quarter, 2017, Reven Housing REIT owned
799 homes in major metropolitan areas across the southwest and
southeast regions of the United States. At quarter-end, the
portfolio was 91.2% occupied and had an average monthly rent of
$980.00 per month.
During the fourth quarter, the Company acquired 48 homes in
Birmingham, Alabama metropolitan area for approximately $2,837,000,
including closing and acquisition costs.
As of the end of the fourth quarter, the Company had $6.4
million in cash on the balance sheet and $30.5 million of
outstanding notes payable, net. During the quarter, the Company
received loans proceeds and issued a promissory note in the amount
of approximately $3.79 million at a fixed interest rate of
4.25% with a 20-year amortization period. The note is secured by
homes in Alabama. Subsequent to year-end, the Company received
additional proceeds of approximately $2.74 million and increased
the note amount to approximately $6.53 million.
Subsequent Events
Subsequent to year-end on February 16, 2018, the Company
purchased 27 additional homes in the Birmingham, Alabama
metropolitan area for approximately $1,659,000 plus closing and
acquisition costs.
About Reven Housing REIT, Inc.
Reven Housing REIT, Inc., (NASDAQ: RVEN) engages in the
acquisition and ownership of portfolios of occupied single family
rental properties in the United States. Reven currently owns and
operates single family rental properties in Alabama, Florida,
Georgia, Mississippi, Tennessee and Texas.
For more information, please visit
http://www.revenhousingreit.com/.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995
and other federal securities laws. The ultimate occurrence of
events and results referenced in these forward-looking statements
is subject to known and unknown risks and uncertainties, many of
which are beyond our control. These forward-looking statements are
based upon the Company's present intentions and expectations, but
the events and results referenced in these statements are not
guaranteed to occur. Investors should not place undue reliance upon
forward-looking statements. For a discussion of these and other
risks facing our business, see the information under the heading
“Risk Factors” in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission (“SEC”) and our other filings
with the SEC from time to time, which are accessible on the SEC’s
website at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20180402005425/en/
Investor Relations:ICR, Inc.Evelyn Infurna,
203-682-8265evelyn.infurna@icrinc.com
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