real-time news and commentary for investors
Thursday, Aug 8
Buyers emerge for Silver Bay Realty after earnings
- Revenue gained 40% Q/Q to $10.7M as 1,197 previously vacant homes were leased. Net operating income of $3.1M up 79% from Q1. GAAP income remains negative ($6.8M or $0.18 per share) as many homes still in renovation or leasing stage.
- Company owns 5,571 single family homes, up 21% Q/Q. 985 additional properties acquired in Q2.
- New metric introduced: Estimated net asset value per share of $18.95 based on estimated fair value of properties. Book value - which contains no estimate of property price appreciation - is $17.30 per share.
- Occupancy rate for stabilized properties of 94% up 200 bps from Q1. Rate for properties owned 6 months or more of 87% up 600 bps. Rate for entire portfolio of 65% up 1200 bps. Average monthly rent of $1,148 down $8. (PR)
- Notes from earnings call (transcript):
- Pace of property purchases has slowed in Q3 as company focuses on getting the ones they already own up to snuff and rented out.
- The company has not yet repurchased any stock (buyback authorization of 2.5M shares came on July 1).
- JPMorgan's Anthony Paolone tries to draw management out on if repair and maintenance costs are going according to plan, and CFO Christine Battist allows that they're a bit higher than anticipated. COO Pat Freydberg says there's not a material difference from expectations, though he'd like to see a higher volume of data before drawing conclusions.
- SBY +3.5%. Other single family names: American Homes 4 Rent (AMH +2.4%), American Residential Properties (ARPI +2%).