Steadfast Apartment REIT III Reports Growing Revenue, Net Operating Income and Net Loss

Steadfast Apartment REIT III Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the third quarter of 2017.

For the three months ended September 30, 2017, the company had total revenues of $5.7 million, compared to $0.3 million for the same period in 2016. Net loss was $3.1 million compared to $0.5 million over the same periods. Total assets of the company grew from $117.4 million at December 31, 2016, to $309.0 million at September 30, 2017.

Third Quarter Highlights:

• Increased modified funds from operations to $0.3 million for the three months ended September 30, 2017, from negative $0.3 million for the same period in 2016.

• Increased funds from operations to $0.2 million for the third quarter of 2017, from negative $0.3 million for the same period in 2016.

• Increased net operating income to $3.1 million for the three months ended September 30, 2017, from $0.1 million year-over-year.

• Acquired two multifamily properties with a total of 624 apartment homes for a total purchase price of $109.1 million, inclusive of closing costs, during the third quarter of 2017.

• Increased its multifamily property portfolio as of September 30, 2017, to seven properties with 1,836 apartment homes and a total purchase price of $287.0 million.

• Had $156.0 million of variable rate debt with a weighted average interest rate of 3.57 percent and $46.8 million of fixed rate debt with a weighted average interest rate of 3.91 percent as of September 30, 2017. The weighted average interest rate on the company’s total outstanding debt as of September 30, 2017 was 3.65 percent.

• Reported net cash provided by operating activities of $0.2 million for the nine months ended September 30, 2017, compared to net cash used in operating activities of $0.7 million for the nine months ended September 30, 2016. Net cash used in investing activities was $189.1 million for the nine months ended September 30, 2017, compared to $7.7 million for the nine months ended September 30, 2016.

• Reported net cash provided by financing activities of $196.4 million and $27.8 million for the nine months ended September 30, 2017 and 2016, respectively, which included $1.9 million and $0.1 million of distributions paid, net of $1.8 million and $0.1 million in non-cash distributions paid pursuant to the Company’s distribution reinvestment plan, respectively.

• Raised $117.5 million in public offering proceeds, net of offering costs, from the sale of 2.6 million shares of Class A common stock, 0.3 million shares of Class R common stock and 2.7 million shares of Class T common stock in its public offering through September 30, 2017, including shares issued pursuant to its distribution reinvestment plan.

“According to recent data from Freddie Mac and the National Multifamily Housing Council, baby boomers and young adults alike will continue to favor renting over home ownership, and not just for financial reasons, but because of lifestyle and preference,” said Ella Neyland, president of the company. “This data supports Steadfast Apartment REIT III’s notion that the United States has become a “GenerationALL” renting society shaped by the two largest generations in U.S. history – millennials and baby boomers.”

Steadfast Apartment REIT III is a real estate investment trust and was formed to acquire and operate a diverse portfolio of institutional-quality multifamily and senior-living apartment communities in targeted markets throughout the United States that have demonstrated high occupancy and income levels across market cycles.

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