STEADFAST APARTMENT REIT, INC. ANNOUNCES RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2016

Irvine, Calif., November 10, 2016 — Steadfast Apartment REIT, 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 $37.4 million and $104.5 million compared to $20.2 million and $40.7 million for the three and nine months ended September 30, 2015. Net loss was $9.9 million and $30.1 million compared to $14.2 million and $33.2 million over the same periods. Total assets of the Company grew from $1.3 billion at December 31, 2015 to $1.5 billion at September 30, 2016.

Highlights:

The Company:

  • Increased modified funds from operations (“MFFO”), as defined by the Investment Program Association, to $9.5 million and $26.5 million for the three and nine months ended September 30, 2016 from MFFO of $5.9 million and $10.8 million for the three and nine months ended September 30, 2015. (See the reconciliation of MFFO to net loss and accompanying notes contained within this release for additional information on how the Company calculates MFFO.)
  • Increased funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts, to $6.7 million and $19.8 million for the three and nine months ended September 30, 2016 from negative FFO of $1.7 million and $7.6 million for the three and nine months ended September 30, 2015. (See the reconciliation of FFO to net loss and accompanying notes contained within this release for additional information on how the Company calculates FFO.)
  • Increased net operating income (“NOI”) to $21.1 million and $58.7 million for the three and nine months ended September 30, 2016 from $11.6 million and $22.8 million for the three and nine months ended September 30, 2015. (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 two multifamily properties with 802 apartment homes for an aggregate purchase price of $121.8 million during the three months ended September 30, 2016.
  • Increased its multifamily property portfolio as of September 30, 2016 to 34 properties with 11,601 apartment homes and an aggregate purchase price of $1.5 billion.
  • Increased cash payments to fund improvements to real estate investments to $35.4 million for the nine months ended September 30, 2016 from $8.3 million for the nine months ended September 30, 2015.
  • Had $883.7 million of variable rate debt with a weighted average interest rate of 2.60% and $67.8 million of fixed rate debt with a weighted average interest rate of 4.51% as of September 30, 2016. The weighted average interest rate on the Company’s total outstanding debt as of September 30, 2016 was 2.73%.
  • Reported net cash provided by operating activities of $26.8 million for the nine months ended September 30, 2016 compared to net cash used in operating activities of $5.6 million for the nine months ended September 30, 2015. Net cash used in investing activities was $251.4 million for the nine months ended September 30, 2016 compared to $649.0 million for the nine months ended September 30, 2015.
  • Reported net cash provided by financing activities of $211.8 million and $676.0 million for the nine months ended September 30, 2016 and 2015, respectively, which included $14.0 million and $5.3 million of distributions paid, net of $16.0 million and $5.8 million in non-cash distributions paid pursuant to the Company’s distribution reinvestment plan, respectively.

“The Emerging Trends in Real Estate 2017 survey by PricewaterhouseCoopers LLP and Urban Land Institute, pointed out that Austin, Texas now offers the most attractive real estate investment opportunity of any major U.S. market followed by Dallas/Ft. Worth,” said Ella Neyland, president of the Company. “Both of these markets were Steadfast target markets when we started investing for our shareholders because we believed both markets exemplify our business plan to buy in neighborhoods that have a vibrant, diverse economy.”

 

About Steadfast Apartment REIT

Steadfast Apartment REIT is a real estate investment trust that was formed to acquire and operate a diverse portfolio of well-positioned, institutional-quality apartment communities in targeted markets throughout the United States that have demonstrated high occupancy and income levels across market cycles.

Steadfast Apartment REIT 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 Annual Report on Form 10-K for Steadfast Apartment REIT, 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.

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