Stone Fox Capital • 15 Comments
Josh Arnold • 91 Comments
Stone Fox Capital • 33 Comments
Josh Arnold • 91 Comments
Wed, May 18, 2:42 PM
- The yield on these income-producers may be about to face some more competition as the FOMC minutes suggest a June rate hike is on the way. The IYR is now lower by 2.2%.
- Individual names: Realty Income (O -3.2%), Welltower (HCN -4.1%), Omega Healthcare (OHI -3.3%), HCP (HCP -3.5%), Medical Properties (MPW -3.3%), Vereit (VER -3.5%), Equity Residential (EQR -1.2%), AvalonBay (AVB -1.8%), SilverBay Realty (SBY -1%), Public Storage (PSA -2.2%), Boston Properties (BXP -3.1%), Hospitality Properties (HPT -2.2%), Pebblebrook Hotel (PEB -3.8%), Stag Industrial (STAG -2.2%)
- ETFs: VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, FRI, DRA, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX
- Previously: Mortgage REITs dive on FOMC surprise (May 18)
Tue, Jan. 19, 11:24 AM
- David Miller is out as president, CEO, and director, effective immediately, and replacing him on an interim basis is board member Thomas Brock.
- With the company no longer as rapid an acquirer of single-family rentals, the board looks like it wants a more experienced operations man leading the way.
- Source: Press Release
- SBY -1% in today's session.
Oct. 19, 2015, 9:31 AM
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.
Apr. 30, 2015, 3:15 PM
- A big rise in interest rates early in the session made for a good excuse to sell REITs, but - with the averages sharply lower - rates have reversed course. Still, the sector can't catch a bid, with many of the bigger names down way more than the broader market.
- Equity REITs: Realty Income (O -2.3%), Health Care REIT (HCN -3.2%), Ventas (VTR -3.2%), HCP (HCP -3.1%), Equity Residential (EQR -2.6%), Silver Bay Realty (SBY -2.5%), General Growth Properties (GGP -2.4%), Retail Opportunity (ROIC -3.9%), Boston Properties (BXP -2.4%), Hospitality Properties (HPT -2.9%)
- Mortgage REITs: Armour Residential (ARR -5.6%) - which reported another weak quarter overnight, Two Harbors (TWO -1.1%), Western Asset (WMC -1.3%), Arlington Asset (AI -2.8%), PennyMac (PMT -1.5%). When things get tough, money does have a tendency to flow into the sector giants though: Annaly Capital (NLY -0.4%) and American Capital Agency (AGNC +0.3%) are notable outperformers on the session.
- ETFs: IYR, VNQ, DRN, URE, REZ, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI
Feb. 27, 2015, 11:16 AM
- "The single-family rental industry has entered the beginning stages of industry consolidation," said Silver Bay Realty (SBY +2.8%) CEO David Miller on the earnings call (transcript) yesterday, noting an increasing number of portfolios on the block coming across his desk in the past 12-18 months.
- Earlier this week, the company announced the acquisition of the American Home Portfolio - 2,460 homes - for $263M in cash. The purchase - once closed - will boost Silver Bay's portfolio size by nearly 40%.
- JMP is a buyer, upgrading the stock to Outperform with price target of $18.
- Previously: Busy quarter for acquisitions for Silver Bay Realty (Feb. 25)
- Previously: Silver Bay Realty beats by $0.02, misses on revenue (Feb. 25)
- Previously: Silver Bay boosts portfolio size nearly 40% with purchase (Feb. 18)
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.
Sep. 16, 2014, 11:46 AM
Jul. 23, 2014, 9:25 AM
- Eyes will be on Silver Bay Realty Trust (NYSE:SBY) to look for follow-through after yesterday's roughly 3% gain on disclosure of a move to internalize company management. The transaction currently is leaning towards Silver Bay's acquisition of the external manager - PRCM Real Estate Advisors - with company shares as the currency.
- In other news, Silver Bay looks to become the latest single family player to raise money through a securitization of its property rental income and expects the deal to launch this week.
Nov. 7, 2013, 3:44 PM
- Surprised at the bump in property maintenance to 29.5% of revenue from 23.5% in Q2 and just 19% forecast, KBW's Jade Rahmani asks for clarification. Management admits surprise at some costs, but reiterates its commitment to bring the ratio down, and asks for time to get more of the portfolio leased and the operation up and running at full speed.
- In response to another question about management fees - which at the moment are charitably running at the whopping rate of more than 15% of revenue - management promises to dramatically bring that down in 2014. CEO David Miller notes the South Florida operation is bringing lots of costs, but not a lot of revenue as it ramps up.
- Acquisitions - which slowed to about zero in Q3 - have started back up again in Q4, Miller tells Zelman's Dennis McGill.
- Q3 earnings call transcript
- Previous Q3 earnings coverage
- SBY -1.8%
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%).
May 7, 2013, 4:34 PM
More on Two Harbors (TWO) Q1 earnings: Book value/share of $11.19 vs. $11.54 on Dec. 31, but special dividend of Silver Bay (SBY) stock amounted to $1.01, so book value actually rose nicely. Closing stock price today of $11.59. Net interest spread of 2.9%, unchanged from Q4. Shares +3.5% AH. Earnings call tomorrow at 9 ET. (PR)| May 7, 2013, 4:34 PM | 2 Comments
Apr. 11, 2013, 5:36 PM
Mar. 18, 2013, 4:19 PM
Two Harbors (TWO) announces a Q1 dividend of $0.32/share plus a special dividend in which spun off Silver Bay (SBY) stock will be distributed to shareholders of record as of April 2. The company also commences a secondary offering of 50M shares, about one-sixth of the current float. Shares -2.1% AH.| Mar. 18, 2013, 4:19 PM
Dec. 17, 2012, 4:18 PM
Two Harbors (TWO) gains 2.2% AH after declaring a $0.55 Q4 dividend, up from $0.36 last quarter. The company doesn't break out how much of this is from recurring income, and how much from the sale of its single-family property portfolio to Silver Bay (SBY) and the realized gains from MBS sales. (PR)| Dec. 17, 2012, 4:18 PM