Silver Bay Realty Trust ("SBY")


By SFace   Follow   Mon, 4 Mar 2013, 9:59am   198 views   1 comment
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This is a great resource to understand what is happening at the investor level for single family homes. The metrics and items that matters are all discussed in the prepared and Q & A. Here is a summary version of the March 1, 2013 conference call.

• Total return is a function of cash return + Capital yields. As I have been saying multiple times, housing is on par with common equity once the correct metric is used.
• Silver Bay sees mid to high single digit capital appreciation over the next 5 – 7 years. basically 5-9%
• Competition will increase. There will be even more investors chasing this class of investments. Silver Bay is among them.
• In fact, investors are just getting started in late 2012.
• Silver Bay will increase their financing, equity and loans. Which means they will have the capacity to buy more homes for rent. Looking the leverage at 30-50% LTV ratio. 1600 – 16,000 in two years
• Not a total surprise, Phoenix is the #1 market. Atlanta, Tampa.
• Third party management fee is around 8-9%

There’s basically not much color to provide other than investors are just getting started. A person who owns one rental will own three, someone who owns 10 will own 30, and an entity who owns 2,000 will own 20,000 in a couple of years. Prices will go up.

http://seekingalpha.com/article/1240081-silver-bay-realty-trust-s-ceo-discusses-q4-2012-results-earnings-call-transcript?page=7&p=qanda&l=last

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  1. E-man


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    1   10:41pm Mon 4 Mar 2013   Share   Quote   Permalink   Like   Dislike  

    Wow. 96% occupancy. That's really really good.

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