Irvine, Calif., March 16, 2017 — Steadfast Apartment REIT III, Inc. (the “Company”) announced today its operating results for the year ended December 31, 2016.
For the year ended December 31, 2016, the Company had total revenues of $1.3 million while net loss was $4.9 million. Total assets of the Company grew from $0.2 million at December 31, 2015 to $117.4 million at December 31, 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 $1.1 million for the year ended December 31, 2016. (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 $4.1 million for the year ended December 31, 2016. (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 $0.7 million for the year ended December 31, 2016. (See the reconciliation of NOI to net loss and accompanying notes contained within this release for additional information on how the Company calculates NOI.)
- Acquired three multifamily properties with a total of 632 apartment homes for an aggregate purchase price of $99.4 million, exclusive of closing costs, during the year ended December 31, 2016.
- Had $72.0 million of variable rate debt with a weighted average interest rate of 3.20% as of December 31, 2016, which represented the Company’s total outstanding debt as of December 31, 2016.
- Reported net cash used in operating activities of $2.2 million for the year ended December 31, 2016. Net cash used in investing activities was $101.2 million for the year ended December 31, 2016.
- Reported net cash provided by financing activities of $119.6 million for the year ended December 31, 2016, which included $286,624 of distributions paid, net of $292,818 in non-cash distributions paid pursuant to the Company’s distribution reinvestment plan.
- Raised $45.6 million in net proceeds from the sale of 1,231,180 shares of Class A common stock, 99,043 shares of Class R common stock and 889,434 shares of Class T common stock in its public offering through December 31, 2016, including shares issued pursuant to the distribution reinvestment plan.
Recent Property Acquisitions:
On January 12, 2017, the Company acquired one additional multifamily property for an aggregate purchase price of $32.4 million resulting in a total of four owned properties with 912 apartment homes with an aggregate purchase price of approximately $131.8 million, exclusive of closing costs.
“The apartment story for ‘GenerationALL’ continues as we increasingly become a nation of renters for all generations,” said Ella Neyland, president of the Company. “The Millennials are the largest living demographic and are delaying home ownership for the convenience and flexibility of apartment living. Baby Boomers are moving back into apartments at an increasing rate for the very same convenience and life-style.”
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.