ARPI: A Fundamentally Flawed Business Model Gives Shorts An Opportunity
Josh Arnold • 25 Comments
Josh Arnold • 25 Comments
Sep. 21, 2015, 10:18 AM
- Starwood Waypoint (SWAY +9.3%) is sharply higher after announcing its merger with Colony Capital's (CLNY +2.7%) Colony American Homes.
- With M&A (and the quick scale-up and cost savings that come with it) in the air, Silver Bay Realty (SBY +1.7%), American Homes 4 Rent (AMH +2.6%), and American Residential Properties (ARPI +2.2%) are also on the move.
Mar. 12, 2015, 11:17 AM
- Q4 core FFO of $2.8M or $0.09 per share vs. $3.8M and $0.12 in Q3. Full-year core FFO of $12.4M or $0.38 per share vs. $5.1M and $0.19 in 2013.
- Total homes of 8,893 vs. 8,223 in Q3. Total percentage leased of 80.7% down 90 basis points.
- Total stabilized homes of 7,841 vs. 7,182 in Q3. Stabilized homes leased of 91.5% down 190 basis points.
- 72% retention on renewals, with rents up 4.2% on renewals.
- Another 123 homes have been purchased since the start of the year, and another 30 have been put under contract.
- CEO Stephen Schmitz: "We have curtailed our acquisition activity and during 2015, we are focusing on refining our operating platform."
- Previously: American Residential Properties misses by $0.03, misses on revenue (March 11)
- ARPI -2%
Nov. 26, 2014, 1:33 PM
- Silver Bay (SBY +2.4%) jumped out of the gates in today's session after last night announcing a big boost in its buyback authorization - suggesting management is a believer in the stock's apparent discount to NAV.
- Others in the sector are also sporting gains: American Homes 4 Rent (AMH +1.1%), American Residential (ARPI +2.6%), Starwood Waypoint (SWAY +2.5%).
- Not hurting is this morning's disappointing new home sales report.
Mar. 20, 2014, 12:09 PM
- Underperforming in the single-family housing sector today is American Residential Properties (ARPI -2%) after a cut to Underperform at BAML.
- Like others in the business, the company is looking for reasonably priced sources of fresh capital and - amid its Q4 results last week - disclosed it's tapped Deutsche Bank to lead a $300M securitization deal for its rental income. Deutsche, of course, led the first such securitization - one from Blackstone late last year.
- CC transcript
Nov. 21, 2013, 4:24 PM
- The private offering of $100M in exchangeable senior notes due in 2018 sent American Residential Properties (ARPI -5.6%) sharply lower during the regular session today.
Aug. 23, 2013, 2:07 PM
- Just 3 weeks after the IPO, American Homes 4 Rent (AMH -1.3%) is reportedly firing 15% of its workforce, according to a Bloomberg report. Earlier this week, the company reported a $14M loss for Q2.
- The move raises a question over the suddenly popular but never-proven business model of earning decent returns by amassing thousands of single-family for rent (AMH has more than 20K now).
- Other publicly traded players (also recently gone public) include Silver Bay (SBY +0.6%) and American Residential Properties (ARPI +0.8%), not to mention the biggest of them all (but not a single-family rental pure-play) Blackstone (BX).
- AMH Q2 results.
- The IPO.
Aug. 8, 2013, 3:07 PM
- 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%).
American Residential Properties Inc is a real estate investment trust. The Company acquires, restores, leases and manages single-family homes as well-maintained investment properties to generate attractive risk-adjusted returns over the long-term.
Industry: REIT - Residential
Country: United States
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