STEADFAST APARTMENT REIT III, INC. ANNOUNCES RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2016
Irvine, Calif., November 10, 2016 — Steadfast Apartment REIT III, Inc. (the “Company”) announced today its operating results for the three and nine months ended September 30, 2016.
For the three and nine months ended September 30, 2016, the Company had total revenues of $292,501 and $437,247 while net loss was $502,350 and $1,377,294, respectively. Total assets of the Company grew from $200,000 at December 31, 2015 to $27.5 million at September 30, 2016. The Company commenced operations with its first property acquisition on May 19, 2016.
- Reported modified funds from operations (“MFFO”), as defined by the Investment Program Association, of negative $321,141 and negative $745,884 for the three and nine months ended September 30, 2016, respectively. (See the reconciliation of MFFO to net loss and accompanying notes contained within this release for additional information on how the Company calculates MFFO.)
- Reported funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts, of negative $340,573 and negative $1,140,203 for the three and nine months ended September 30, 2016, respectively. (See the reconciliation of FFO to net loss and accompanying notes contained within this release for additional information on how the Company calculates FFO.)
- Reported net operating income (“NOI”) of $118,167 and $191,069 for the three and nine months ended September 30, 2016, respectively. (See the reconciliation of NOI to net loss and accompanying notes contained within this release for additional information on how the Company calculates NOI.)
- Had $5.6 million of variable rate debt with a weighted average interest rate of 3.00% as of September 30, 2016, which represented the Company’s total outstanding debt as of September 30, 2016.
- Reported net cash used in operating activities of $669,714 for the nine months ended September 30, 2016. Net cash used in investing activities was $7.7 million for the nine months ended September 30, 2016.
- Reported net cash provided by financing activities of $27.8 million for the nine months ended September 30, 2016, which included $71,088 of distributions paid, net of $70,228 in non-cash distributions paid pursuant to the Company’s distribution reinvestment plan.
- Raised $21.1 million in net proceeds from the sale of 653,975 shares of Class A common stock, 43,337 shares of Class R common stock and 334,057 shares of Class T common stock in its public offering through September 30, 2016.
“It is easy to see how millennials are embracing apartment living because of the convenience and flexibility to move for job opportunities. But at Steadfast, we believe that this is now a “GenerationAll” movement that includes Baby Boomers,” said Ella Neyland, president of the Company. “According to the Joint Center for Housing Studies of Harvard University, in just 15 years, one in five people will be at least 65 years old. We believe that this older generation is increasingly becoming a renter generation by choice.”
About Steadfast Apartment REIT III
Steadfast Apartment REIT III intends to be a real estate investment trust and was formed to acquire and operate a diverse portfolio of well-positioned, institutional-quality multifamily and senior-living apartment communities in targeted markets throughout the United States that have demonstrated high occupancy and income levels across market cycles.
Steadfast Apartment REIT III is sponsored by Steadfast REIT Investments, LLC, an affiliate of Steadfast Companies, an Orange County, California-based group of affiliated real estate investment and operating companies that acquire, develop and manage real estate in the U.S. and Mexico.
This release contains certain forward-looking statements. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may” and “should” and their variations identify forward-looking statements. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release. Such factors include those described in the Risk Factors section of the Registration Statement filed with the SEC on June 21, 2016 for Steadfast Apartment REIT III, Inc. Forward-looking statements in this document speak only as of the date on which such statements were made, and the Company undertakes no obligation to update any such statements that may become untrue because of subsequent events. Such forward-looking statements are subject to the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES.