Steadfast Income REIT Reports First Quarter Results

May 15, 2018

Steadfast Income REIT Inc., a publicly registered non-traded real estate investment trust, announced its operating results for the first quarter of 2018.

For the three months ended March 31, 2018, the company sold 11 multifamily properties, including the contribution of eight properties to a joint venture with Blackstone Real Estate Investment Trust Inc., for a gross sales price of $256.1 million, exclusive of closing costs, for a gain on sales of real estate of $81.2 million.

The company noted that the reduced size of its portfolio had a significant impact on its first quarter 2018 operating results, compared to the first quarter of 2017.

During the first quarter of 2018, the company had total revenues of $35.5 million compared to $54.3 million for same period last year. Net income was $73.3 million for the first quarter of 2018, compared to net loss of $5.6 million for the first quarter of 2017. Total assets of the company at March 31, 2018, were $1.14 billion compared to $1.25 billion at December 31, 2017.

First Quarter 2018 Highlights:

• Experienced a decrease in net operating income from $28.3 million for the first quarter of 2017, to NOI of $19.1 million for the first quarter of 2018.

• Experienced a decrease in modified funds from operations, as defined by the Institute for Portfolio Alternatives (formerly known as the Investment Program Association), from $12.6 million for the first quarter of 2017, to MFFO of $7 million for the first quarter of 2018.

• Experienced a decrease in funds from operations, as defined by the National Association of Real Estate Investment Trusts, from $12.3 million for the first quarter of 2017, to FFO of $4.9 million for the first quarter of 2018.

• Reported net cash used in operating activities of $1.5 million for the first quarter of 2018, compared to net cash provided by operating activities of $0.3 million for the same period last year.

• Net cash provided by investing activities was $172.4 million for the first quarter 2018, compared to net cash used in investing activities of $4.3 million for the first quarter 2017

• Net cash used in financing activities of $92.5 million for the first quarter of 2018, which included $13.3 million of cash distributions. Net cash used in financing activities was $17.8 million for the first quarter of 2017, which included $13.4 million of paid cash distributions.

• Owned a multifamily property portfolio of 37 properties with a total purchase price, excluding closing costs, of $1 billion and a 10 percent ownership interest in the joint venture with Blackstone REIT.

• Had $320.2 million of fixed rate debt with a weighted-average interest rate of 3.82 percent and $402.6 million of variable rate debt with a weighted-average interest rate of 4.10 percent as of March 31, 2018. The weighted average interest rate on the company’s total outstanding debt was 3.98 percent as of March 31, 2018;

• Funded $1.4 million for improvements to real estate investments for the first quarter of 2018, compared to $4.5 million for the first quarter of 2017.

“According to CBRE Econometric Advisors’ market outlook for 2018, rent growth in the suburbs over the past two years has averaged 3.4 percent nationally while downtown rents have grown at just 0.6 percent over the same period,” said Ella Neyland, president of the company. “We believe this validates the company’s investment thesis that most of America is choosing to live in moderate income apartments in a more suburban setting.”

Steadfast Income REIT invests primarily on the multifamily sector, including stable, income-producing and value-added properties. The company launched its initial public offering in July 2010 and concluded its offering in December 2013 after raising $745 million in investor equity.

For more Steadfast related news, visit their directory page here.

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