Post Earnings Coverage as Colony Starwood’s Revenue Grew 9%

Upcoming AWS Coverage on VEREIT Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 24, 2017 / Active Wall St. announces its post-earnings coverage on Colony Starwood Homes (NYSE: SFR). The Company disclosed its first quarter fiscal 2017 financial results on May 08, 2017. The single-family rental real estate investment trust outperformed revenue and FFO forecasts. Register with us now for your free membership at:

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One of Colony Starwood Homes’ competitors within the REIT – Diversified space, VEREIT, Inc. (NYSE: VER), reported on May 04, 2017 its operating results for the three months ending March 31, 2017. AWS will be initiating a research report on VEREIT in the coming days.

Today, AWS is promoting its earnings coverage on SFR; touching on VER. Get our free coverage by signing up to

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended March 31, 2017, Colony Starwood’s total revenues were $151.0 million compared to revenue of $138.27 million in Q1 2016, driven by Same Home revenue growth of 6.9%. The Company’s revenue numbers topped analysts’ consensus of $147.5 million.

For Q1 2017, Colony Starwood’s net loss attributable to common shareholders was $11.34 million, or $0.11 per share, driven by depreciation and amortization expense, compared to a loss of $44.20 million, or $0.43 per share.

Colony Starwood’s NAREIT FFO was $33.9 million, $0.31 per share for Q1 2017, and Core FFO was $52.8 million, or $0.48 per share. The Company’s Core FFO numbers exceeded Wall Street’s estimates of $0.46 per share.

Same Home Results

For Q1 2017, Colony Starwood’s Same Home portfolio of 28,732 homes, revenue, operating expenses, and NOI were $137.4 million, $50.7 million, and $86.7 million, respectively. Year-over-year Same Home revenue and expense growth were affected by the implementation of a third-party utility billing service provider during Q3 2016, whereby water, sewer, and trash services are now held in the Company’s name during resident occupancy and subsequently billed-back to the resident; this had the effect of increasing both revenue growth and expense growth. The Company’s Core Revenue growth for the reported quarter was 5.6% with Core Expense growth of 4.0%. Same Home Core NOI margin for Q1 2017 and Q1 2016 were 65.4% and 64.9%, respectively.

Investments

During Q1 2017, Colony Starwood acquired 397 homes for an aggregate total investment of approximately $92.4 million, or approximately $233,000 per home, including estimated investment costs for renovation. These acquisitions consisted of 250 single-asset purchases totaling $59 million, $20 million in build-to-rent deliveries of 85 new homes, and $13 million in small portfolio acquisitions totaling 62 homes. The Company sold 136 single-family rental homes for gross sales proceeds of $27.8 million, resulting in a gain of approximately $0.7 million.

Balance Sheet and Capital Markets Activities

As of March 31, 2017, Colony Starwood had $3.8 billion of debt outstanding and approximately $250.0 million of undrawn commitments on its credit facilities.

In January 2017, the Company sold $345.0 million of 3.50% convertible senior notes due 2022. The Company used the net proceeds from the new convertible offering to repurchase, in privately negotiated transactions, substantially all of its 4.50% convertible senior notes due in 2017. Remaining proceeds from the note issuance were used to repay amounts drawn on the Company’s credit facilities, to fund ongoing asset acquisitions, and for general corporate purposes. During the same month, the Company also entered into a five-year $550.0 million swap contract, effectively fixing its floating securitization debt at an average rate of 3.59% over the term bringing the Company’s fixed rate debt to over 90% of total debt.

In March 2017, Colony Starwood completed a follow-on equity offering of approximately $750.0 million, consisting of approximately $350.0 million primary shares sold by the Company and approximately $400.0 million in secondary shares sold by original sponsors. In March 2017, the Company also entered into an $800.0 million forward swap contract effective from 2019 through 2022 to extend existing swap contracts expiring in 2019.

On May 02, 2017, the Company’s Board declared a dividend of $0.22 per common share for Q2 2017, which will be paid on July 14, 2017, to shareholders of record on June 30, 2017.

Outlook

For the full year 2017, Colony Starwood re-affirmed its forecast of core FFO per share in the range of $1.85 to $1.95 per share. This represents double-digit growth over the prior year. The Company’s operational assumptions for FY17 include Same Home occupancy averaging between 95% and 96%; turnover of 34% to 36%; Same Home revenue growth in the band of 4% to 5%; Same Home expense growth between 2% to 3%; and Same Home core NOI margins in the range of 63% to 65%.

Stock Performance

On Tuesday, May 23, 2017, Colony Starwood Homes’ share price finished the trading session at $34.54, slightly up 0.38%. A total volume of 709.22 thousand shares exchanged hands. The stock has advanced 15.17% and 29.95% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have surged 19.89%. The stock currently has a market cap of $3.87 billion and has a dividend yield of 2.55%.

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