American Residential Properties, Inc. Reports Fourth Quarter And Full Year 2013 Financial Results

SCOTTSDALE, Ariz., March 12, 2014 /PRNewswire/ -- American Residential Properties, Inc. (NYSE: ARPI) (the "Company") reported today results for the quarter and full year ended December 31, 2013.

Fourth Quarter 2013 Summary

  • Invested $104 million to acquire 633 single-family homes, a 15% increase in our aggregate investment and a 12% increase in number of homes owned compared to the prior quarter.
  • Increased the number of leased properties by 458 properties, or 11%, compared to the prior quarter.
  • Achieved an occupancy rate of 75% on the total portfolio and 86% on properties owned six months or longer.
  • Increased rents by an average of 3.4% on renewals.
  • Funded $18 million in short-term private mortgage loans.
  • Owned $42 million in short-term private mortgage loans with a weighted-average interest rate of 11.8%.
  • Total revenue was $13.2 million, an increase of 20%, compared to the prior quarter.
  • Core FFO attributable to common stockholders was break-even.
  • FFO attributable to common stockholders was $(0.8) million, or $(0.03) per diluted share.
  • Financial results include $1.8 million in reduced revenue and additional charges related to the default and subsequent lease termination with a preferred operator and $0.4 million in severance related charges.
  • Successfully issued and sold $115 million 3.25% exchangeable senior notes due 2018.

Full Year 2013 Summary

  • Invested $582 million to acquire 4,298 single-family homes.
  • Owned a portfolio of 6,073 single-family homes located in 13 states for a total investment of $802 million.
  • Core FFO attributable to common stockholders was $5.1 million, or $0.19 per diluted share.
  • FFO attributable to common stockholders was  $(3.5) million, or $(0.13) per diluted share.
  • Ratio of total debt to total gross assets was 31% as of year-end.
  • Amended and restated our revolving credit facility expanding our bank group and increasing the maximum borrowing capacity to $380 million, with an accordion feature that permits increasing capacity to $500 million.
  • Successfully completed the Company's IPO for net proceeds of $265 million.

"We had an outstanding year in 2013 and made tremendous progress in expanding our robust platform for long-term success in the single-family rental market," said Stephen G. Schmitz, Chairman and Chief Executive Officer of American Residential Properties, Inc. "We increased the number of homes in our portfolio by more than 240% during the year, which required us to refine and enhance the processes, systems and procedures needed to effectively manage these assets. The strong internal capabilities we developed enabled us to restore more than 3,500 homes, sign leases on more than 2,300 homes and renew more than 700 existing leases during the year.  As a result of our increasingly efficient operating platform, we have been able to quickly convert our acquisitions into cash flowing assets."

"During the fourth quarter, we continued to execute our core growth strategies and build depth within our targeted markets. However, our bottom line results were negatively impacted by the default of one of our preferred operators. We have terminated our Master Leases with this operator and assumed management of these Company-owned properties within our self-managed portfolio."

"We expect 2014 to be another year of strong growth in the portfolio and increasing profitability as we continue to improve efficiencies. We have recently retained Deutsche Bank to serve as our lead banker to assist in structuring and negotiating a securitization transaction. Raising capital through a securitization is expected to provide in excess of $300 million in medium-term debt, reduce our cost of capital and enable us to continue funding our acquisition strategy in 2014," said Mr. Schmitz.

Financial Results

Total Revenue

Total revenue for the quarter ended December 31, 2013 increased $2.1 million to $13.2 million, compared to $11.1 million for the quarter ended September 30, 2013, and increased $11.0 million, compared to $2.2 million for the quarter ended December 31, 2012. Total revenue for the year ended December 31, 2013 increased $35.1 million to $38.0 million, compared to $2.9 million for the period from March 30, 2012 (inception) through December 31, 2012. The increase in total revenue from the prior quarter is primarily attributable to higher rental income generated from the leases of an additional 458 homes, offset by a $1.1 million reduction in revenue related to the default and subsequent lease termination with a preferred operator.

Net Loss Attributable to Common Stockholders

Net loss attributable to common stockholders for the quarter ended December 31, 2013 increased $(3.9) million to $(8.4) million, or $(0.26) per diluted share, compared to $(4.5) million, or $(0.14) per diluted share, for the quarter ended September 30, 2013, and increased $(5.8) million, compared to $(2.6) million, or $(0.21) per diluted share, for the quarter ended December 31, 2012. Net loss attributable to common stockholders for the year ended December 31, 2013 increased $(18.9) million to $(25.0) million, or $(0.92) per diluted share, compared to $(6.1) million, or $(0.53) per diluted share, for the period from March 30, 2012 (inception) through December 31, 2012. The increase in net loss attributable to common stockholders from the prior quarter is primarily attributable to the following items:

  • $1.1 million in reduced revenue and a $0.7 million charge to real estate taxes related to the default and subsequent lease termination with a preferred operator;
  • $1.2 million increase in depreciation and amortization due to the increase in our portfolio;
  • $0.4 million charge to general, administrative and other expense related to severance charges; and
  • $1.7 million increase in interest expense related to higher average borrowings under our revolving credit facility and the exchangeable senior notes issued in November 2013, which includes $0.3 million in non-cash interest expense related to the amortization of the discount on our exchangeable senior notes.

FFO and Core FFO Attributable to Common Stockholders

Funds from operations ("FFO") attributable to common stockholders for the quarter ended December 31, 2013 decreased $2.7 million to $(0.8) million, or $(0.03) per diluted share, compared to $1.9 million, or $0.06 per diluted share, for the quarter ended September 30, 2013, and increased $0.4 million compared to $(1.2) million, or $(0.10) per diluted share, for the quarter ended December 31, 2012.  FFO attributable to common stockholders for the year ended December 31, 2013 increased $0.9 million to $(3.5) million, or $(0.13) per diluted share, compared to $(4.4) million, or $(0.38) per diluted share, for the period from March 30, 2012 (inception) through December 31, 2012.

Core funds from operations ("Core FFO") attributable to common stockholders for the quarter ended December 31, 2013 decreased $2.2 million to $0.0 million, compared to $2.2 million, or $0.07 per diluted share, for the quarter ended September 30, 2013, and increased $0.8 million, compared to $(0.8) million, or $(0.07) per diluted share, for the quarter ended December 31, 2012. Core FFO attributable to common stockholders for the year ended December 31, 2013 increased $8.7 million to $5.1 million, or $0.19 per diluted share, compared to $(3.6) million, or $(0.32) per diluted share, for the period from March 30, 2012 (inception) through December 31, 2012.

Portfolio Highlights

Real Estate Acquisitions

From October 1, 2013 to December 31, 2013, the Company acquired 633 single-family homes, of which 291 are in Texas, 103 are in Tennessee, 88 are in North Carolina,  59 are in Illinois, 31 are in Georgia, 23 are in Indiana, 16 are in Arizona, 11 are in Ohio, 7 are in Florida, 2 are in South Carolina and 2 are in Nevada, and incurred renovation and re-tenancy costs on the Company's existing portfolio, for a total investment of approximately $104 million.

Portfolio

As of December 31, 2013, the Company owned 6,073 single-family homes in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Nevada, North Carolina, Ohio, South Carolina, Tennessee and Texas for a total investment of approximately $802 million. As of December 31, 2013, approximately 75% of the Company's portfolio was leased.

During the fourth quarter 2013, the Company terminated the leases with three of its preferred operators. The Company has assumed management of these Company-owned properties, which the preferred operators had been operating pursuant to the leases, and transferred 828 homes into its self-managed portfolio, of which 336 homes are in Indiana, 166 homes are in Arizona, 163 homes are in Georgia, 138 homes are in Florida, 14 homes are in Nevada and 11 homes are in North Carolina.

Operating Metrics

The following table summarizes the Company's portfolio and operating metrics:



As of December 31, 2013


As of September 30, 2013


As of December 31, 2012



Number

of Homes


%

Leased


Number of Homes


%
Leased


Number of Homes


%
Leased

Portfolio of single-family homes













Self-managed


5,478



72

%


4,077



66

%


1,228



65

%

Preferred operator program


595



100

%


1,363



100

%


547



100

%

Total


6,073



75

%


5,440



75

%


1,775



76

%


Portfolio of single-family homes owned for six months or longer













Self-managed


3,660



84

%


1,521



87

%


70



79

%

Preferred operator program


429



100

%


1,010



100

%




%

Total


4,089



86

%


2,531



92

%


70



79

%

Recent Developments

For the period from January 1, 2014 to February 28, 2014, the Company acquired 308 single-family homes for a total purchase price of approximately $46 million and contracted to acquire 340 additional homes for a total purchase price of approximately $53 million. Of the homes the Company acquired or contracted to acquire during this period, 259 homes are in Texas, 140 homes are in Tennessee, 93 homes are in Georgia,  61 homes are in Indiana, 49 homes are in North Carolina, 28 homes are in Florida, 15 homes are in Illinois, 1 home is in Arizona, 1 home is in Ohio and 1 home is in Nevada. There is no assurance that the Company will close on the properties it has under contract.

Conference Call

The Company will host a conference call commencing at 11:00 AM Eastern Daylight Time on Thursday, March 13, 2014, to discuss its financial results for the quarter ended December 31, 2013 and to provide a Company update. To participate in the event by telephone, please dial (800) 446-2782 approximately ten minutes prior to the start time (to allow time for registration) and use conference ID 36772483. International callers should dial (847) 413-3235 and enter the same conference ID number.

You may listen to the teleconference via live webcast on the Internet on the Company's website at www.amresprop.com in the Investor Relations section under the Calendar of Events link.

A replay of the conference call will be available for two weeks, beginning March 13, 2014 at 1:30 PM Eastern Daylight Time, until March 27, 2014 at 11:59 PM Eastern Daylight Time. To access the replay, dial (888) 843-7419 and use conference ID 36772483. International callers should dial (630) 652-3042 and enter the same conference ID number.

Non-GAAP Financial Measures

FFO and Core FFO

FFO is a widely recognized measure of real estate investment trust, or REIT, performance. The Company calculates FFO as defined by the National Association of Real Estate Investment Trusts, or NAREIT. FFO represents net income (loss) (as computed in accordance with U.S. generally accepted accounting principles, or GAAP), excluding gains from disposition of property, plus real estate-related depreciation and amortization (including capitalized leasing costs).

The Company also presents Core FFO, which is FFO excluding acquisition costs and items that are non-recurring or not related to the Company's core business activities. FFO and Core FFO are supplemental non-GAAP financial measures. Management uses FFO and Core FFO as supplemental performance measures because FFO and Core FFO account for trends in occupancy rates, rental rates and operating costs. The Company also believes that, as widely recognized measures of the performance of REITs, FFO and Core FFO will be used by investors as a basis to compare the Company's operating performance with that of other REITs.

However, because FFO and Core FFO exclude depreciation and amortization and capture neither the changes in the value of the Company's properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company's properties, all of which have real economic effects and could materially impact the Company's results of operations, the utility of FFO and Core FFO as measures of the Company's performance is limited. Other equity REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, the Company's FFO and Core FFO may not be comparable to those of other REITs. As a result, FFO and Core FFO should be considered only as supplements to net income (loss) as a measure of the Company's performance. FFO and Core FFO should not be used as measures of the Company's liquidity, nor is either indicative of funds available to fund the Company's cash needs, including the Company's ability to pay dividends or make distributions. FFO and Core FFO also should not be used as supplements to or substitutes for net income (loss) or net cash flows from operating activities (as computed in accordance with GAAP).

About American Residential Properties, Inc.

American Residential Properties, Inc. is an internally managed real estate company, organized as a REIT for federal income tax purposes, that acquires, owns and manages single-family homes as rental properties in select communities nationwide. The Company's primary business strategy is to acquire, restore, lease and manage single-family homes as well-maintained investment properties to generate attractive, risk-adjusted returns over the long-term. With a vertically integrated real estate acquisition and management platform incorporating disciplined acquisition criteria, extensive research, seasoned personnel and comprehensive operations, the Company is well-positioned to execute its strategy.

Additional information about American Residential Properties, Inc. can be found on the Company's website at www.amresprop.com.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "plan" or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Examples of forward-looking statements include descriptions of the Company's plans for future growth, profitability and a securitization transaction. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the single-family rental industry and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission.

All information in this press release is current as of the date of this release. The Company undertakes no obligation to update the statements in this release to conform the statements to actual results or changes in the Company's expectations.

 

AMERICAN RESIDENTIAL PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share amounts)





December 31,

2013

(unaudited)


December 31,

2012

Assets





Investment in real estate:





Land


$

158,795



$

44,381


Building and improvements


627,881



171,598


Furniture, fixtures and equipment


6,930



1,994




793,606



217,973


Less: accumulated depreciation


(18,058)



(1,277)


Investment in real estate, net


775,548



216,696


Mortgage financings


43,512



13,025


Cash and cash equivalents


24,294



101,725


Acquisition deposits


282



217


Rents and other receivables, net


2,906



1,703


Due from related party


43



26


Deferred leasing costs and lease intangibles, net


2,454



1,576


Deferred financing costs, net


6,558



44


Investment in unconsolidated ventures


26,611



10,060


Goodwill


3,500



3,500


Other, net


8,494



855


Total assets


$

894,202



$

349,427



Liabilities and Equity





Liabilities:





Revolving credit facility


$

169,000



$


Exchangeable senior notes


99,377




Accounts payable and accrued expenses


12,862



2,438


Security deposits


3,995



626


Prepaid rent


1,549



132


Total liabilities


286,783



3,196


Equity:





American Residential Properties, Inc. stockholders' equity:





Preferred stock, $0.01 par value, 100,000,000 shares authorized; no shares issued and outstanding





Common stock $0.01 par value, 500,000,000 shares authorized; 32,171,102 and 18,387,257 shares issued and outstanding at December 31, 2013 and 2012, respectively


322



184


Additional paid-in capital


628,210



346,851


Accumulated deficit


(31,122)



(6,139)


Total American Residential Properties, Inc. stockholders' equity


597,410



340,896


Non-controlling interests


10,009



5,335


Total equity


607,419



346,231


Total liabilities and equity


$

894,202



$

349,427


 

AMERICAN RESIDENTIAL PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(amounts in thousands, except share and per-share amounts)
(unaudited)





Three Months Ended
December 31,


Twelve Months Ended
December 31,


Period from March 30, (inception) to

 December 31,



2013


2012


2013


2012

Revenue:









Self-managed rental revenue


$

10,680



$

1,245



$

26,110



$

1,746


Preferred operator rental revenue


926



449



6,244



449


Management services (related party)


115



93



442



238


Interest and other


1,515



381



5,164



497


Total revenue


13,236



2,168



37,960



2,930


Expenses:









Property operating and maintenance


3,621



574



8,536



912


Real estate taxes


2,780



375



6,095



608


Homeowners' association fees


424



211



1,170



330


Acquisition


140



434



3,890



760


Depreciation and amortization


7,826



1,382



22,193



1,804


General, administrative and other


4,056



1,902



16,374



4,837


Interest


2,856





5,113




Total expenses


21,703



4,878



63,371



9,251


Loss from continuing operations before equity in net income of unconsolidated ventures


(8,467)



(2,710)



(25,411)



(6,321)


Equity in net (loss) income of unconsolidated ventures


(50)



83



60



83


Net loss and comprehensive loss


(8,517)



(2,627)



(25,351)



(6,238)


Net loss and comprehensive loss attributable to non-controlling interests


139



40



368



99


Net loss and comprehensive loss attributable to common stockholders


$

(8,378)



$

(2,587)



$

(24,983)



$

(6,139)


Basic and diluted loss per share:









Net loss attributable to common stockholders


$

(0.26)



$

(0.21)



$

(0.92)



$

(0.53)


Weighted-average number of shares of common stock outstanding


32,124,930



12,059,132



27,130,348



11,536,193


 

AMERICAN RESIDENTIAL PROPERTIES, INC.
Reconciliation of Net Loss to Funds From Operations (FFO)
(amounts in thousands, except share and per-share amounts)
(unaudited)





Three Months Ended
 December 31,


Twelve Months Ended
 December 31,


Period from March 30, (inception) to December 31,



2013


2012


2013


2012

Net loss


$

(8,517)



$

(2,627)



$

(25,351)



$

(6,238)


Add: Depreciation and amortization of real estate assets


7,686



1,363



21,817



1,776


FFO


$

(831)



$

(1,264)



$

(3,534)



$

(4,462)


FFO attributable to common stockholders(1)


$

(818)



$

(1,245)



$

(3,483)



$

(4,392)


FFO per share of common stock, basic and diluted


$

(0.03)



$

(0.10)



$

(0.13)



$

(0.38)


Weighted-average number of shares of common stock outstanding:









Basic


32,124,930



12,059,132



27,130,348



11,536,193


Diluted(2)


32,124,930



12,059,132



27,130,348



11,536,193



(1) Based on a weighted-average interest in the Company's operating partnership of approximately 98.40% and 98.48%, for the three months ended December 31, 2013 and 2012, respectively, and 98.55% and 98.42% for the twelve months ended December 31, 2013 and the period from March 30, 2012 (inception) through December 31, 2012, respectively.

(2) Assumes the issuance of potentially issuable shares unless the result would be anti-dilutive. Potentially issuable shares include operating partnership units, vested LTIP unit interests in the Company's operating partnership ("LTIP units"), unvested LTIP units and unvested restricted common stock.

 

AMERICAN RESIDENTIAL PROPERTIES, INC.
Reconciliation of Funds From Operations (FFO) to Core Funds From Operations (Core FFO)
(amounts in thousands, except share and per-share amounts)
(unaudited)





For the Three Months Ended
 December 31,


For the Twelve Months Ended
 December 31,


Period from March 30, (inception) to December 31,



2013


2012


2013


2012

FFO


$

(831)



$

(1,264)



$

(3,534)



$

(4,462)


Add: Non-recurring cash compensation paid upon completion of the IPO






1,000




Add: Non-recurring stock-based compensation related to the vesting of LTIP units upon completion of the IPO






3,142




Add: Acquisition expense(1)


140



434



3,890



760


Add: Severance expense


430





430




Add: Non-cash interest expense related to amortization of discount on exchangeable senior notes


266





266




Core FFO


$

5



$

(830)



$

5,194



$

(3,702)


Core FFO attributable to common stockholders(2)


$

5



$

(817)



$

5,119



$

(3,644)


Core FFO per share of common stock, basic and diluted


$



$

(0.07)



$

0.19



$

(0.32)


Weighted-average number of shares of common stock outstanding:









Basic


32,124,930



12,059,132



27,130,348



11,536,193


Diluted(3)


32,684,249



12,059,132



27,535,807



11,536,193



(1) Includes acquisition expenses primarily related to costs incurred on acquired properties subject to an existing lease and accounted for as a business combination, in accordance with GAAP.

(2) Based on a weighted-average interest in the Company's operating partnership of approximately 98.40% and 98.48%, for the three months ended December 31, 2013 and 2012, respectively, and 98.55% and 98.42% for the twelve months ended December 31, 2013 and the period from March 30, 2012 (inception) through December 31, 2012, respectively.

(3) Assumes the issuance of potentially issuable shares unless the result would be anti-dilutive. Potentially issuable shares include operating partnership units, vested LTIP units, unvested LTIP units and unvested restricted common stock.

 

AMERICAN RESIDENTIAL PROPERTIES, INC.
Total Portfolio of Single-Family Homes—Summary Statistics
(unaudited)


The following table presents summary statistics of the Company's entire portfolio of single-family homes by metropolitan statistical area, or MSA, and metropolitan division, or metro division, as of December 31, 2013, in descending order of aggregate investment.


MSA/Metro Division


 Number of
Homes


 Aggregate Investment (thousands)


 Average Investment Per Home (1)


 Percentage Leased (2)


 Average Age
(years)


 Average Size
(square feet)

Phoenix, AZ


1,380



$

197,015



$

142,764



87

%


17



1,714


Houston, TX


956



$

136,354



$

142,630



73

%


6



1,876


Dallas-Fort Worth, TX


584



$

92,441



$

158,289



61

%


12



2,096


Chicago, IL


496



$

64,745



$

130,534



100

%


55



1,406


Other Texas


249



$

41,925



$

168,373



53

%


10



1,957


Inland Empire, CA


213



$

37,956



$

178,197



91

%


16



1,915


Raleigh, NC


203



$

29,654



$

146,079



71

%


9



1,710


Nashville, TN


224



$

29,423



$

131,353



51

%


11



1,704


Charlotte, NC-SC


191



$

28,056



$

146,890



30

%


9



1,958


Winston-Salem, NC


223



$

27,849



$

124,883



82

%


12



1,409


Indianapolis, IN


493



$

26,621



$

53,998



72

%


58



1,228


Atlanta, GA


260



$

23,085



$

88,788



67

%


20



1,664


Florida


233



$

18,135



$

77,833



81

%


12



1,310


Other California


82



$

10,382



$

126,610



88

%


36



1,336


Las Vegas, NV


68



$

7,119



$

104,691



75

%


15



1,553


Other MSA/Metro Divisions


218



$

31,354



$

143,826



50

%


9



1,597


Total/Weighted Average


6,073



$

802,114



$

132,079



75

%


20



1,696



(1) For self-managed homes, represents average purchase price (including broker commissions and closing costs) plus average capital expenditures. For preferred operator program homes, represents purchase price (including broker commissions and closing costs) paid by the Company for the portfolio divided by the number of homes in the portfolio and does not include past, expected or budgeted general and administrative expenses associated with ongoing monitoring activities of the Company's investment. The preferred operator is obligated to pay for all taxes, insurance, other expenses and capital expenditures (including significant capital improvements) required for the management, operation and maintenance of the properties. Accordingly, absent a default by the preferred operator under a long-term lease agreement with the Company, the Company expects to incur no expenses related to properties under the Company's preferred operator program, other than general and administrative expenses associated with ongoing monitoring activities of the Company's investment.

(2) Includes both self-managed homes and preferred operator program homes. The Company classifies homes in its preferred operator program as 100% leased, because each preferred operator is obligated to pay the Company 100% of the base rent specified in the applicable lease irrespective of whether or not the homes are occupied by residential sub-tenants. This does not mean that 100% of the homes leased to preferred operators are occupied by residential sub-tenants. If a preferred operator is unable to lease a material portion of the homes it leases from the Company to residential sub-tenants, it may adversely affect such operator's ability to pay rent to the Company under the lease.

 

AMERICAN RESIDENTIAL PROPERTIES, INC.
Portfolio of Self-Managed Single-Family Homes—Summary Statistics
(unaudited)


The following table presents summary statistics on the Company's portfolio of single-family homes that the Company manages by MSA and metro division as of December 31, 2013, in descending order of aggregate investment.




















Leased Homes

MSA/Metro Division


 Number of
Homes


 Average Purchase Price Per Home (1)


 Average Capital Expenditures Per Home (2)


 Average Investment Per Home (3)


 Aggregate Investment (thousands)


 Percentage Leased


 Average Age (years)


 Average Size (square feet)


 Average Monthly Rent Per Leased Home


Annual Average Rent per Leased Home as a Percentage of Average Investment Per Leased Home (4)

Phoenix, AZ


1,380



$

137,714



$

5,050



$

142,764



$

197,015



87

%


17



1,714



$

1,015



8.6

%

Houston, TX


956



$

138,885



$

3,745



$

142,630



$

136,354



73

%


6



1,876



$

1,309



11.3

%

Dallas-Fort Worth, TX


584



$

149,535



$

8,754



$

158,289



$

92,441



61

%


12



2,096



$

1,429



10.9

%

Other Texas


249



$

159,905



$

8,468



$

168,373



$

41,925



53

%


10



1,957



$

1,488



10.9

%

Inland Empire, CA


213



$

156,722



$

21,475



$

178,197



$

37,956



91

%


16



1,915



$

1,382



9.3

%

Raleigh, NC


203



$

141,371



$

4,708



$

146,079



$

29,654



71

%


9



1,710



$

1,247



9.9

%

Nashville, TN


224



$

129,250



$

2,103



$

131,353



$

29,423



51

%


11



1,704



$

1,114



13.8

%

Charlotte, NC-SC


191



$

141,324



$

5,566



$

146,890



$

28,056



30

%


9



1,958



$

1,236



10.1

%

Winston-Salem, NC


223



$

122,748



$

2,135



$

124,883



$

27,849



82

%


12



1,409



$

1,086



10.4

%

Atlanta, GA


260



$

86,508



$

2,280



$

88,788



$

23,085



67

%


20



1,664



$

970



14.2

%

Indianapolis, IN


394



$

55,457



$

401



$

55,858



$

22,008



65

%


56



1,244



$

789



17.5

%

Florida


233



$

75,348



$

2,485



$

77,833



$

18,135



81

%


12



1,310



$

811



13.0

%

Other California


82



$

108,496



$

18,114



$

126,610



$

10,382



88

%


36



1,336



$

1,042



9.8

%

Las Vegas, NV


68



$

96,553



$

8,138



$

104,691



$

7,119



75

%


15



1,553



$

1,012



11.5

%

Other MSA/Metro Divisions


218



$

138,626



$

5,200



$

143,826



$

31,354



50

%


9



1,608



$

1,141



10.3

%

Total/Weighted Average


5,478



$

128,321



$

5,442



$

133,763



$

732,756



72

%


16



1,732



$

1,134



10.4

%


(1) Average purchase price includes broker commissions and closing costs.

(2) Represents average capital expenditures per home as of December 31, 2013. Does not include additional expected or future capital expenditures.

(3) Represents average purchase price plus average capital expenditures.

(4) Represents annualized average monthly rent per leased home as a percentage of the Company's average investment (average purchase price per home plus average capital expenditures) per leased home. Does not include a provision for payment of ongoing property expenses (such as insurance, taxes, HOA fees and maintenance) or an allocation of the Company's general and administrative expense, all of which materially impact the Company's results. Accordingly, it should not be interpreted as a measure of profitability, and its utility in evaluating the Company's business is limited. Average monthly rent for leased homes may not be indicative of average rents the Company may achieve on its vacant homes.

 

AMERICAN RESIDENTIAL PROPERTIES, INC.
Portfolio of Preferred Operator Program Single-Family Homes—Summary Statistics
(unaudited)


The following table presents summary statistics of the Company's portfolio of single-family homes that the Company's preferred operators manage by MSA and metro division as of December 31, 2013, in descending order of aggregate investment.


MSA/Metro Division


 Number of
Homes


 Average Investment Per Home (1)


 Aggregate Investment (thousands)


 Percentage Leased (2)


 Average Age (years)


 Average Size (square feet)


 Average Monthly Rent Per Home Paid by Preferred Operator to Us (3)


 Annual Rent as a Percentage of Average Investment Per Home (4)

Chicago, IL


496



$

130,534



$

64,745



100

%


55



1,406



$

785



7.2

%

Indianapolis, IN


99



$

46,596



$

4,613



100

%


62



1,162



$

349



9.0

%

Total/Weighted Average


595



$

116,568



$

69,358



100

%


57



1,366



$

712



7.3

%


(1) Represents purchase price (including broker commissions and closing costs) paid by the Company for the portfolio divided by the number of homes in the portfolio and does not include past, expected or budgeted general and administrative expenses associated with ongoing monitoring activities of the Company's investment. The preferred operator is obligated to pay for all taxes, insurance, other expenses and capital expenditures (including significant capital improvements) required for the management, operation and maintenance of the properties. Accordingly, absent a default by the preferred operator under a long-term lease agreement with the Company, the Company expects to incur no expenses related to properties under its preferred operator program, other than general and administrative expenses associated with ongoing monitoring activities of the Company's investment.

(2) The Company classifies homes in its preferred operator program as 100% leased, because each preferred operator is obligated to pay the Company 100% of the base rent specified in the applicable lease irrespective of whether or not the homes are occupied by residential sub-tenants. This does not mean that 100% of the homes leased to preferred operators are occupied by residential sub-tenants. If a preferred operator is unable to lease a material portion of the homes it leases from the Company to residential sub-tenants, it may adversely affect such operator's ability to pay rent to the Company under the lease.

(3) Represents the initial annual base rent payable to the Company by the preferred operator pursuant to the portfolio lease divided by 12 and then divided by the number of homes included in the lease.

(4) Represents annualized average monthly rent paid by the preferred operator to the Company as a percentage of the Company's average investment per home. The rent paid by the preferred operator is net of all taxes, insurance, other expenses and capital expenses (including significant capital improvements) for which the preferred operator is responsible.

 

AMERICAN RESIDENTIAL PROPERTIES, INC.
Total Portfolio of Single-Family Homes
Owned for Six Months or Longer—Summary Statistics
(unaudited)


The following table presents summary statistics of the Company's portfolio of single-family homes owned for at least six months as of December 31, 2013, in descending order of number of homes.


MSA/Metro Division


 Number of
Homes


 Average

Investment

Per Home (1)


 Homes Leased


 Homes Vacant (2)


 Percentage Leased

Phoenix, AZ


1,224



$

135,378



1,083



141



86

%

Indianapolis, IN


437



$

51,961



324



113



74

%

Houston, TX


410



$

138,559



354



56



86

%

Chicago, IL


360



$

131,279



360





100

%

Atlanta, GA


222



$

79,671



166



56



75

%

Florida


217



$

73,956



184



33



85

%

Inland Empire, CA


213



$

178,199



193



20



91

%

Dallas-Fort Worth, TX


203



$

160,315



175



28



86

%

Winston-Salem, NC


188



$

124,570



176



12



94

%

Nashville, TN


120



$

94,819



109



11



91

%

Raleigh, NC


101



$

133,842



74



27



73

%

Other Texas


95



$

160,716



72



23



76

%

Other California


82



$

126,612



72



10



88

%

Charlotte, NC-SC


65



$

142,505



42



23



65

%

Las Vegas, NV


64



$

101,925



50



14



78

%

Other MSA/Metro Divisions


88



$

118,293



69



19



78

%

Total/Weighted Average


4,089



$

121,515



3,503



586



86

%


(1) Represents average purchase price plus average capital expenditures.

(2) As of December 31, 2013, 306 homes were available for rent, 268 homes were undergoing renovation and 12 homes were occupied with no lease.

 

 

SOURCE American Residential Properties, Inc.



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