Steadfast REITs Report Operating Results
Steadfast Income REIT and Steadfast Apartment REIT, non-traded REITs sponsored by Steadfast REIT Investments, LLC, recently revealed their operating results for the three and six months ended June 30, 2014.
Formed in 2009, Steadfast Income REIT focuses primarily on the multifamily sector and closed its initial public offering in December 2013. The company reported increased modified funds from operations (MFFO) from $4.6 million in the second quarter of 2013 to $11.1 million in this year’s second quarter. The REIT increased to $20.5 million for the six months ended June 30, 2014 from $8.9 million in the same period of 2013. The company also reported increased net operating income (NOI) to $25.1 million and $47.9 million for the three and six months ended June 30, 2014 from $12.3 million and $23.0 million for the three and six months ended June 30, 2013, respectively.
Additionally, the REIT acquired two multifamily properties and disposed of a multifamily property, bringing its portfolio to 66 properties with 16,493 apartment homes and an aggregate purchase price of $1.6 billion.
“Job growth is a key driver of demand for apartment homes,” said Ella Neyland, President of the Company. “The Steadfast markets have above average job and population growth. Our largest market, Houston, has led major US cities in job recovery since December 2011. Austin, one of our next largest markets, was #1 on Forbes’ list of the “Fastest Growing cities in 2014” and Dallas was ranked number 3 on the same list. Nashville was dubbed by Time magazine as the “South’s Red-Hot Town” because it had the strongest employment growth since the recession of any large metropolitan area according to the Nashville Business Journal.”
Steadfast Apartment REIT also reported its recent results, having commenced real estate operations on May 22, 2014 with its first acquisition. Steadfast Apartment REIT seeks to acquire a diverse portfolio of well-positioned, institutional-quality apartment communities in targeted markets across the U.S that have high occupancy and income levels.
The company acquired two multifamily properties with a total of 483 apartment homes for an aggregate purchase price of $42.1 million during the second quarter and has an active pipeline of potential acquisitions. The young non-traded REIT’s MFFO was negative $255,944 and negative $531,467 for the three and six months ended June 30, 2014. And its NOI was $101,146 and $101,146 the three and six months, respectively.
The company reported that net cash used in operating activities was $819,999 for the first half of the year while net cash used in investing activities was $42.5 million. The REIT also reported net cash provided by financing activities was $48.9 million for the same period.
“We just commenced operations of our company in late May,” said Rod Emery, CEO of the Company. “Since then we have been off to a great start. Our business plan for Steadfast Apartment REIT is to buy stabilized, institutional quality apartment communities in high job growth markets. The strong local economies and domestic migration into these markets should give us the ability to increase “organic” rents, drive down costs and ride the wave of increased demand for moderate income apartments. America is increasingly becoming a nation of renters by choice.”
