Silver Bay Realty Trust Corp. Reports Third Quarter 2016 Financial Results

Silver Bay Realty Trust Corp. (NYSE:SBY) (the "Company" or "Silver Bay"), a single-family rental real estate investment trust ("REIT"), today announced its operating and financial results for the quarter ended September 30, 2016.

Highlights
  • Recorded total revenue of $31.6 million, a 3% year-over-year increase for the third quarter of 2016, notwithstanding a decrease of 237 properties in the aggregate portfolio
  • Increased aggregate occupancy rate to 96.8% on a portfolio of 8,837 single-family properties compared to 94.9% for the third quarter of 2015
  • Achieved rental increases of 9.1% on re-leases and 3.6% on renewals for the third quarter of 2016
  • Reported a net loss of $1.7 million, or $0.05 per common share, for the third quarter of 2016, a change of 17% compared to the third quarter of 2015
  • Increased net operating income (as defined in this release) by 6% to $17.5 million for the third quarter of 2016, compared to the third quarter of 2015
  • Achieved Same-Home net operating income (as defined in this release) increase of 8% year-over-year to $12.0 million for the third quarter of 2016
  • Reported core funds from operations (as defined in this release) of $0.19 per share, an increase of 12% compared to the third quarter of 2015
  • Acquired a portfolio of 322 homes for an aggregate purchase price of $41.5 million on October 1, 2016. This was partially financed with the proceeds from the sale of 66 non-core homes during the quarter.
  • Entered into interest rate swap transactions to effectively fix the interest rate on $296 million of the Company's floating rate debt at 2.8% over the next three years

"In the third quarter we had solid top-line growth and continued momentum across key portfolio metrics including an occupancy rate of 97%. This combined with some operational improvements contributed to an 8% year-over-year increase in Same-Home net operating income," said Thomas W. Brock, Silver Bay's Chief Executive Officer. "Our strategy to optimize our portfolio is proceeding as planned. We have virtually exited Southern California at full market value prices for those properties, and are continuing to see opportunities to re-allocate capital in assets that have favorable yields in our core markets. At this point in time, we believe this is the best use of capital to generate strong cash flow and returns to our shareholders."

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