Steadfast Apartment REIT Reports Second Quarter Financial Results

Steadfast Apartment REIT Inc., a publicly registered non-traded real estate investment trust, reported its operating results for the three and six months ended June 30, 2016.

For the three and six months ended June 30, 2016, Steadfast Apartment REIT had total revenues of $34.7 million and $67.2 million compared to $12.7 million and $20.5 million for the three and six months ended June 30, 2015. Net loss was $9.9 million and $20.2 million compared to $11.5 million and $19.0 million over the same periods. Total assets of the company grew from $1.3 billion at December 31, 2015 to $1.4 billion at June 30, 2016.

Company Highlights:

• Increased modified funds from operations to $8.8 million and $17 million for the three and six months ended June 30, 2016, from MFFO of $3.1 million and $5 million for the three and six months ended June 30, 2015.

• Increased funds from operations to $6 million and $13.1 million for the three and six months ended June 30, 2016 from negative FFO of $3.8 million and $5.9 million for the three and six months ended June 30, 2015.

• Increased net operating income to $19.5 million and $38.3 million for the three and six months ended June 30, 2016 from $6.8 million and $11.2 million for the three and six months ended June 30, 2015.

• Acquired one multifamily property with 724 apartment homes for a total purchase price of $110 million during the three months ended June 30, 2016.

• Increased its multifamily property portfolio as of June 30, 2016 to 32 properties with 10,799 apartment homes and a total purchase price of $1.4 billion.

• Increased cash payments to fund improvements to real estate investments to $21.7 million for the six months ended June 30, 2016 from $3.3 million for the six months ended June 30, 2015.

• Had $782.9 million of variable rate debt with a weighted average interest rate of 2.56 percent and $67.8 million of fixed-rate debt with a weighted average interest rate of 4.51 percent, as of June 30, 2016. The weighted average interest rate on the company’s total outstanding debt was 2.71 percent.

• Reported net cash provided by operating activities of $17.3 million for the six months ended June 30, 2016 compared to net cash used in operating activities of $2.9 million for the six months ended June 30, 2015. Net cash used in investing activities was $163.5 million for the six months ended June 30, 2016 compared to $420.2 million for the six months ended June 30, 2015.

• Reported net cash provided by financing activities of $162.1 million and $397 million for the six months ended June 30, 2016 and 2015, respectively, which included $8.8 million and $2.9 million of distributions paid, net of $10.1 million and $3.1 million in non-cash distributions paid pursuant to the company’s distribution reinvestment plan, respectively.

• Raised $640.3 million in net proceeds from the sale of 48.6 million shares of common stock in its public offering through March 24, 2016, the date the company terminated its public offering.

“As Steadfast Apartment REIT deploys the last of the capital raised in its public offering, we continue to have the wind at our back as the demand for apartment living continues to be strong,” said Ella Neyland, president of the company. “The 75 million Millennials are embracing the convenience of apartment living and in fact, have the lowest home ownership rate of their age group in history, according to a CNBC publication released in July 2016. The Baby Boomers are living longer and healthier and are increasingly choosing apartment living as an attractive life style choice.”

Steadfast Apartment REIT is sponsored by Steadfast REIT Investments, LLC, an affiliate of Steadfast Companies, an Orange County, California-based group of affiliated real estate investment and operating companies that acquire, develop and manage real estate in the U.S. and Mexico.

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