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Leasing picks up as Silver Bay pauses home purchases

  • Silver Bay Realty Trust (SBY): Q3 net operating income of $4.5M gains 44% from Q2 on revenue of $14.5M, up 35%. Standing out are property management fees of $3.7M on rental revenue of $14.5M - that's 25%. It's hard making money in this business with a 10% management fee.
  • Estimated net asset value of $19.50 per share up 3% - this measure is based on the company's estimate of fair value of properties. Book value is $17.16 per share, down from $17.30 in Q2.
  • The company stopped buying homes in Q3, and 4,521 homes from the owned portfolio of 5,575 homes are now leased, bringing total occupancy to 81% from 65% in Q2. Occupancy for properties owned 6 months or longer rises 200 basis points to 89%.
  • Average monthly rent of $1,161 vs. $1,148 in Q2.
  • 500K shares repurchased at average price of $15.58 per share.
  • CC tomorrow at 9 ET. (PR).
  • Shares gained 3.1% in the regular session today as Blackstone's (BX +0.4%) first securitization of rental payments got off to a big start with the company able to borrow more against the assets than had been expected . Other single-family rental stocks: American Homes 4 Rent (AMH +1.8%), American Residential Properties (ARPI +2.4%).
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