Steadfast Apartment REIT III Reports Robust Growth in 2017

March 22, 2018

Steadfast Apartment REIT III Inc., a publicly registered non-traded real estate investment trust, reported its operating results for the year ended December 31, 2017.

For the year ended December 31, 2017, the REIT had total revenues of $19.6 million compared to $1.3 million for the previous year. Net loss was $11.8 million compared to $4.9 million over the same period. Total assets grew from $117.4 million at December 31, 2016, to $381.6 million at December 31, 2017.

“We continue to see tremendous demand for residents to live in the city suburbs of Dallas, Denver and Austin where there is job creation and a lifestyle that appeals to millennials and increasingly to Baby Boomers that are looking to downsize,” said president Ella Neyland. “We believe the convenient life style and the moderate income rent price point of our apartment communities meet this demand.”

2017 Highlights:

• Increased modified funds from operations, as defined by the Investment Program Association, to $1.3 million for the year ended December 31, 2017, from negative $1.1 million for the year ended December 31, 2016.

• Increased funds from operations, as defined by the National Association of Real Estate Investment Trusts, to $0.7 million for the year ended December 31, 2017, from negative $4.1 million for the year ended December 31, 2016.

• Increased net operating income to $10.9 million for the year ended December 31, 2017, from $0.7 million for the year ended December 31, 2016.

• Acquired six multifamily properties with a total of 1,960 apartment homes for a total purchase price of $269.7 million during 2017.

• Increased cash payments to fund additions to real estate investments to $4.1 million for the year ended December 31, 2017, from $0.3 million for the year ended December 31, 2016.

• Had $156.0 million of variable rate debt with a weighted average interest rate of 3.90 percent, and $102.5 million of fixed rate debt with a weighted average interest rate of 3.89 percent as of December 31, 2017. The weighted average interest rate on the company’s total outstanding debt as of December 31, 2017 was 3.90 percent.

• Reported net cash provided by operating activities of $2.7 million for the year ended December 31, 2017, compared to net cash used in operating activities of $2.2 million for the year ended December 31, 2016. Net cash used in investing activities was $273.9 million for the year ended December 31, 2017, compared to $101.2 million for the year ended December 31, 2016.

• Reported net cash provided by financing activities of $270.3 million and $119.6 million for the years ended December 31, 2017 and 2016, respectively, which included $3.0 million and $0.3 million of distributions paid, net of $2.7 million and $0.3 million in non-cash distributions paid pursuant to the company’s distribution reinvestment plan, respectively.

• Raised $137.9 million in public offering proceeds, net of offering costs, from the sale of 2.9 million shares of Class A common stock, 0.3 million shares of Class R common stock, and 3.4 million shares of Class T common stock in its public offering through December 31, 2017, including shares issued pursuant to its distribution reinvestment plan.

Steadfast Apartment REIT III was formed to acquire and operate a 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. The REIT’s primary offering was declared effective by the SEC in February 2016 and raised $171.6 million in investor equity since inception, as of March 8, 2018. The company’s portfolio is comprised of 9 properties purchased for a combined $369 million.

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