Colony Starwood Homes is a foremost single-family rental REIT (Real Estate Investment Trust). The Company is one of the largest publicly-traded owners and operators of single-family rental homes in America.
Colony Starwood Homes acquires, renovates, leases, maintains, and manages single-family homes in markets, which exhibit favorable demographics and long-term economic trends, and strengthening demand for rental properties. At present, the Company is acquiring homes via single asset purchases, new construction with homebuilders, and stabilized portfolios of occupied homes.
Colony Starwood Homes has its corporate headquarters in Scottsdale, Arizona. Its two predecessor companies, Colony American Homes and Starwood Waypoint Residential Trust merged in January of 2016.
The Company is actively purchasing in Charlotte, Raleigh, Nashville, Phoenix, Denver and Colorado Springs. In addition, Colony considers portfolios or new construction opportunities in the additional markets where it operates. The new Waypoint Homes is a leader in providing quality, single-family rental homes. This real estate company presently owns over 30,000 homes in 10 states across the U.S.
Colony Starwood Homes’ overall minimum purchasing criteria is 3-plus bedrooms; 2-plus bathrooms; 1,000- plus sq. ft.; 1980-plus vintage; $1,100-plus rent rates (this depends on the individual market); as well as good school ratings and low crime areas. The Company’s business is seasonal with well-planned additional lease expirations and move-outs taking place during the peak summer leasing season.
For Q3 2016, the Company’s Total Revenues grew to $146.1 million. Occupancy for Q3 was 95.4 percent for the Quarterly Same Store group of 26,592 homes. In Q3, Colony Starwood Homes significantly exited from the non-performing loans (NPL) business with a portfolio sale that produced total proceeds of $265.3 million.
Colony decreased total debt by $383.0 million year-to-date with NPL proceeds, non-core asset disposition activity and cash from operations. During Q3, the Company sold 472 homes. This included 265 single-family rental homes and 207 REO (Real Estate Owned) homes.
For Q3 2016, Colony’s strongest performing markets were Denver, northern California, and Charlotte, with core operating margins of 70 percent or greater. Markets with the strongest blended rent growth for Q3 were northern California (10 percent), Denver (8.8 percent, and Phoenix (7.2 percent).
Mr. Frederick Tuomi, Colony Starwood Homes’ Chief Executive Officer, said in November 2016, that, “As planned and indicated previously, during Q3 we accelerated our acquisition activity, strengthened our balance sheet, and simplified our business with the sale of a non-performing loan portfolio.”( Colony Starwood Homes’ (SFR) CEO, Frederick Tuomi on Q3 2016 Results – Earnings Call Transcript)
In Q3 2016, the Company acquired 431 homes for roughly $112 million (approximately $260,000 per home). This included a portfolio transaction of 217 homes in California, as well as five smaller portfolios in Charlotte, Raleigh, Nashville, and Phoenix.
This week, Colony Starwood Homes announced that it will release Q4 and full year 2016 financial results after the market close on Monday, February 27, 2017. It will host a conference call on Tuesday, February 28, 2017 at 10:00 a.m. Eastern Time to review its Q4 financial and operating results, provide a Company update, and conduct a question-and-answer session.