Altisource Residential Corporation Announces Acquisition Of 751 Stabilized Rental Properties, Taking Rental Portfolio To Over 10,000 Homes; Provides Strategic Update

CHRISTIANSTED, U.S. Virgin Islands, June 29, 2017 (GLOBE NEWSWIRE) -- Altisource Residential Corporation ("RESI" or "the Company") (NYSE:RESI) today announced that it has completed the acquisition of an additional 751 stabilized single family rental properties from entities sponsored by Amherst Holdings, LLC ("Amherst") for an aggregate purchase price of $117 million.  The transaction was the second closing under the Company's previously announced Purchase and Sale Agreement (the "Purchase Agreement") to acquire up to 3,500 single family rental properties from Amherst. With the completion of this transaction, RESI's rental portfolio now exceeds 10,000 homes.

Consistent with the previous closing under the Purchase Agreement, RESI received seller financing of 75% of the purchase price pursuant to a loan agreement with a term of up to five years and a floating interest rate of one-month LIBOR plus a fixed spread of 2.30%. In connection with the acquisition, RESI has again retained the current property manager for the portfolio, Main Street Renewal, LLC.

Recent Developments

In addition to completing its second significant acquisition under the Purchase Agreement, RESI also made substantial progress on the disposition of legacy assets during the second quarter of 2017.  In May, the Company completed its anticipated sale of 2,104 non-performing loans with an unpaid principal balance of $517 million, leaving approximately 450 remaining loans expected to be sold in the third quarter.  Non-rental REO sales in the second quarter are expected to exceed 500 and the Company is targeting the sale of substantially all the remaining non-rental REOs by the end of 2017.  The disposition of these legacy assets continues to generate substantial liquidity, positioning RESI well for the acquisition of a significant number of additional single-family rental properties. 

"The completion of these important acquisition and disposition transactions mark the continued successful achievement of targeted milestones in our strategic growth plan," stated Chief Executive Officer George Ellison.

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