CareTrust REIT Acquires Two North Carolina Assisted Living and Memory Care Communities

May 3, 2016 0

SAN CLEMENTE, Calif., May 03, 2016 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. (Nasdaq:CTRE) today announced that it has acquired Croatan Village, a 46-unit assisted living and memory care facility located in New Bern, North Carolina, and Countryside Village, a 21-unit memory care facility located in Pikeville, North Carolina, in a single transaction for $11.8 million. In connection with the acquisitions, CareTrust entered into a triple-net master lease for both assets with Premier Senior Living, LLC, which took over operations effective May 1, 2016.   

“Our ability to bring an exceptional operator like Premier to the equation allowed the seller to cash out and retire,” noted Dave Sedgwick, CareTrust’s Vice President of Operations. “We couldn’t be more pleased to be partnering with Wayne, Bob and the outstanding Premier team to shepherd these assets and the residents they serve into the future,” he added.

Wayne Kaplan and Robert Borsody, Premier’s co-founders and principals, also commented on the assets and the relationship with CareTrust. “We are very excited to be starting this new relationship with CareTrust, and we anticipate growing the relationship in time,” said Mr. Kaplan. Mr. Borsody added, “In fact, we are already looking at several additional opportunities together, and hope to have additional announcements in the near future.”   

The North Carolina investments generate initial annual rental revenue of approximately $1.0 million to CareTrust under the terms of the Premier master lease, which carries an initial term of 15 years with two five-year renewal options and CPI-based rent escalators. The acquisition was funded with proceeds from CareTrust’s recent 8.5 million share equity offering, which took place on March 21, 2016.

In separate transactions on the same day, CareTrust also acquired a 98-bed skilled nursing facility in Boise, Idaho, for $8.9 million, which has been leased to Cascadia Healthcare, LLC, at an annual rental revenue of approximately $0.85 million. In addition, CareTrust acquired a 175-unit senior housing property located in Bedford, Virginia, in a sale-leaseback from 20/Twenty Management, at a cost of $10.0 million.

About Premier Senior Living, LLC

Founded by principals and industry veterans Wayne Kaplan and Robert Borsody, Premier Senior Living, LLC and its operating affiliates are privately-held New York-based assisted living and memory care companies with 13 operating locations in four states. Premier’s seniors housing campuses deliver care and programs daily which are meant to enhance the lives of residents by providing a cozy, home-like atmosphere, with all the advantages of living in an active community.

About CareTrustTM

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust that is engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 140 net-leased healthcare properties and three operated seniors housing properties in 19 states, CareTrust is pursuing opportunities nationwide to acquire additional properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust is available at www.caretrustreit.com.

CONTACT: CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com

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CareTrust REIT Acquires Virginia Independent and Assisted Living Community

May 3, 2016 0

SAN CLEMENTE, Calif., May 03, 2016 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. (Nasdaq:CTRE) today announced that it has acquired English Meadows Elks’ Home, a 175-unit independent and assisted living campus located in Bedford, Virginia, for $10.0 million. The transaction was the second sale-leaseback between CareTrust and Blacksburg-based Twenty/20 Management, Inc., one of western Virginia’s best-known and best-regarded assisted living operators.

Twenty/20 acquired the historic campus in 2014 from the nonprofit Benevolent and Protective Order of the Elks, and now serves over 185 residents there daily. CareTrust gave Twenty/20 a financing commitment shortly thereafter, subject to the achievement of specified stabilization goals, which the Twenty/20 team reached well ahead of schedule.

“As operators themselves, CareTrust saw the property’s potential immediately,” said Mike Williams, Chief Executive Officer of Twenty/20. “Thanks to our partnership with CareTrust, we are able to focus on the long-term, and can see the Elks Home Campus becoming Virginia’s premier senior living community,” he added.

David Sedgwick, CareTrust’s Vice President of Operations, commented on the Elks asset and Twenty/20’s execution of the business plan. “Mike and his team did exactly what they said they’d do, and more,” he said. “The Elks organization entrusted their wonderful legacy to exactly the right operator, and we at CareTrust feel fortunate to be associated with Twenty/20 and this historic asset,” he added.

The Elks property was added to CareTrust’s existing triple-net master lease with Twenty/20, and produces additional annual rental revenue under the lease of approximately $0.83 million. The master lease is approximately 16 months into its 15-year initial term, and carries two five-year renewal options and CPI-based rent escalators. The acquisition was funded with proceeds from CareTrust’s recent 8.5 million share equity offering, which took place on March 21, 2016.

In separate transactions on the same day, CareTrust also acquired a two-property, 67-unit senior housing portfolio in North Carolina for $11.8 million, which has been leased to Premier Senior Living at an annual rental of approximately $1.0 million. In addition, CareTrust acquired a 98-bed skilled nursing facility in Boise, Idaho, for $8.9 million, which has been leased to Cascadia Healthcare, LLC, at an annual rental revenue of approximately $0.85 million.    

About Twenty/20 Management, Inc.

Started by co-founders and industry veterans Mike Williams & Steve Orndorff in 1998, Twenty/20 Management, Inc. and its operating affiliates are privately-held Blacksburg, Virginia-based assisted living companies with operating locations in Christiansburg, Bedford and Abingdon, Virginia.

About CareTrustTM

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust that is engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 140 net-leased healthcare properties and three operated seniors housing properties in 19 states, CareTrust is pursuing opportunities nationwide to acquire additional properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust is available at www.caretrustreit.com.

CONTACT: CareTrust REIT, Inc., (949) 542-3130, ir@caretrustreit.com

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CareTrust REIT Acquires Idaho Skilled Nursing Facility

May 3, 2016 0

SAN CLEMENTE, Calif., May 03, 2016 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. (NASDAQ:CTRE) today announced that it has acquired Shaw Mountain at Cascadia, a 98-bed skilled nursing facility located in Boise, Idaho, for $8.9 million.  In connection with the acquisition, CareTrust entered into a triple-net lease with Cascadia Healthcare, LLC, which took over operations effective May 1, 2016.

The asset acquisition was sourced by Cascadia, who sought out CareTrust for sale-leaseback financing.  Owen Hammond, Cascadia’s co-founder and CEO, explained their desire to partner with Care Trust. “Their operator-focused philosophy and deep understanding of skilled nursing operations really attracted us to them,” he said, adding that, “We know and trust the CareTrust team as a strategic ally, and look forward to a long and successful partnership with them.”

Greg Stapley, CareTrust’s Chairman and Chief Executive Officer, noted, “We have long known and respected Cascadia’s principals, dating back to our Ensign days together, and are excited to see Cascadia become a major player in the post-acute care delivery throughout Idaho and beyond.”

The Boise investment generates initial annual rental revenue of approximately $0.85 million to CareTrust under the terms of the Cascadia master lease, which carries an initial term of 15 years with two five-year renewal options and CPI-based rent escalators. The acquisition was funded with proceeds from CareTrust’s recent 8.5 million share equity offering, which took place on March 21, 2016.

In separate transactions on the same day, CareTrust also acquired a two-property, 67-unit senior housing portfolio in North Carolina for $11.8 million, which has been leased to Premier Senior Living at an annual rental of approximately $1.0 million. In addition, CareTrust acquired a 175-unit senior housing property located in Bedford, Virginia, in a sale-leaseback from 20/Twenty Management, at a cost of $10.0 million. The property was added to CareTrust’s existing master lease with 20/Twenty, and generates additional annual rental revenue of approximately $0.83 million.

About Cascadia Healthcare

Cascadia Healthcare is a growing post-acute healthcare company, based in Eagle, Idaho. Cascadia’s principals bring a deep understanding of healthcare operations at both the facility and regional levels, having worked in different capacities over many years at one of the nation’s most highly-respected publicly-traded post-acute care providers.

About CareTrustTM

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust that is engaged in the ownership, acquisition and leasing of seniors housing and healthcare-related properties. With 140 net-leased healthcare properties and three operated seniors housing properties in 19 states, CareTrust is pursuing opportunities nationwide to acquire additional properties that will be leased to a diverse group of local, regional and national seniors housing operators, healthcare services providers, and other healthcare-related businesses. More information about CareTrust is available at www.caretrustreit.com.

Contact InformationCareTrust REIT, Inc. (949) 542-3130, ir@caretrustreit.com

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Arbor Realty Trust Declares Preferred Stock Dividends

May 2, 2016 0

UNIONDALE, N.Y., May 02, 2016 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (NYSE:ABR), today announced that its Board of Directors has declared cash dividends on the Company’s Series A, Series B and Series C cumulative redeemable preferred stock reflecting accrued dividends from March 1, 2016 through May 31, 2016. The dividends are payable on May 31, 2016 to preferred stockholders of record on May 15, 2016. The Company will pay total dividends of $0.515625, $0.484375 and $0.53125 per share on the Series A, Series B and Series C preferred stock, respectively. 

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. is a real estate investment trust, which invests in a diversified portfolio of multifamily and commercial real estate related bridge and mezzanine loans, preferred equity investments, mortgage related securities and other real estate related assets. Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC, a national commercial real estate finance company operating through 17 offices in the US that specializes in debt and equity financing for multifamily and commercial real estate. For more information about Arbor Realty Trust, Inc., visit www.arborrealtytrust.com

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.  Arbor can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, continued ability to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2015 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release.  Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

 

Contacts:Arbor Realty Trust, Inc.Paul Elenio, Chief Financial Officer 516-506-4422pelenio@arbor.comInvestors:The Ruth GroupJoseph Green646-536-7013jgreen@theruthgroup.comMedia:Bonnie Habyan, EVP of Marketing516-506-4615bhabyan@arbor.com

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Latest CoStar Commercial Repeat-Sale Analysis: U.S. Property Prices See Slower Growth in First Quarter on Lower Transaction Activity

April 29, 2016 0

WASHINGTON, April 29, 2016 (GLOBE NEWSWIRE) — This month’s CoStar Commercial Repeat Sale Indices (CCRSI) provides the market’s first look at March 2016 commercial real estate pricing. Based on 1,188 repeat sales in March 2016 and more than 155,000 repeat sales since 1996, the CCRSI offers the broadest measure of commercial real estate repeat sales activity.

Several charts accompanying this release are available at 

http://www.globenewswire.com/NewsRoom/AttachmentNg/15188bee-4572-45d2-9b76-93045c382968

CCRSI National Results Highlights

  • COMMERCIAL PROPERTY PRICE GROWTH REMAINED MUTED IN FIRST QUARTER. After declining slightly in the first two months of 2016, both CCRSI’s national composite price indices ended the first quarter of 2016 on a modestly positive note as price growth returned in March 2016. For the first quarter, the value-weighted U.S. Composite Index, influenced by the sale of high-quality, larger assets, advanced by 0.4%, while the equal-weighted U.S. Composite Index, reflecting more numerous smaller deals, remained essentially unchanged, rising just 0.1%.
  • PRICING MOMENTUM HAS SLOWED ACROSS THE BOARD. The most recent quarterly reading in the major composite indices represents a slowdown from 2014–15, when both indices grew at a quarterly average rate of nearly 3%. The slowdown was evident across all major property types and regions in the first quarter of 2016.
  • LOWER TRANSACTION ACTIVITY CONTRIBUTING TO MORE MODEST PRICE GROWTH. Total investment volume of $24 billion in the first quarter of 2016 was down 16.7% from the first quarter of 2015 as capital flows continued to decelerate from last year’s record-setting levels. While favorable market conditions and deteriorating international economic conditions appear to provide the motivation for continuing elevated liquidity in the U.S. real estate markets, the rising cost of debt is expected to contribute to slower deal volume and price growth in 2016. 
  • FIRST-QUARTER PRICE DECLINES IN INDUSTRIAL AND RETAIL PROPERTY SECTORS HOLD DOWN EQUAL-WEIGHTED U.S. COMPOSITE INDEX. The U.S. Industrial and Retail indices slipped 0.1% and 0.4%, respectively, in the first quarter of 2016. Meanwhile, the U.S. Office and Multifamily indices continued to grow in the first quarter, but more slowly than in the last two years. The CCRSI Prime Metro indices handily outpaced growth in overall property-type indices in the first quarter, suggesting that price growth remained firmer for property at the top of the market.
  • PROPERTY PRICES IN NORTHEAST REGION HELD STEADY WHILE MIDWEST LAGGED. The Midwest Composite Index fell 1% in the first quarter, with widespread declines in all four regional property indices. Meanwhile, the Northeast Composite Index, with its concentration of large, core markets that led price growth in the recovery—including New York and Boston—maintained its dominant position. The Northeast index had the strongest growth of the four major regions at 0.8% in the first quarter of 2016, and it remained the only regional index that has exceeded its pre-recession peak level.

Monthly CCRSI Results, Data Through March 2016

  1 Month

Earlier
1 Quarter

Earlier
1 Year

Earlier
Trough to

Current
Value-Weighted U.S. Composite Index   0.4 %   0.4 %   7.3 % 90.3%1
Equal-Weighted U.S. Composite Index   0.4 %   0.1 %   7.2 % 50.1%2
U.S. Investment-Grade Index   0.5 %   -0.1 %   5.3 % 64.4%3
U.S. General Commercial Index   0.4 %   0.1 %   7.5 % 49.1%4
1 Trough Date: January 2010  2 Trough Date: March 2011  3 Trough Date: March 2010  4 Trough Date: March 2011
 

Quarterly CCRSI Property Type Results

  • PRICING GAINS MODERATED ACROSS MAJOR PROPERTY SECTORS DURING FIRST QUARTER. While all major property types posted slower price growth during the first quarter, the Prime Markets Indices within each property sector, which are dominated by the large, core, coastal metros, generally have increased more rapidly than the national property type indices, further suggesting that commercial property in core markets remained attractive to investors, even as overall investment volume fell from its pace last year.
  • MULTIFAMILY INDEX REMAINS GROWTH LEADER AMONG FOUR MAJOR PROPERTY TYPES. The U.S. Multifamily Index expanded 0.8% in the first quarter of 2016 and 9.9% in the 12-month period ending in March 2016, the strongest quarterly and annual rates among the four major property types. It remains the only U.S. property index to have regained its pre-recession peak, ending the first quarter of 2016 18.8% above its previous high level in 2007. Notably, the Prime Multifamily Metros Index has skyrocketed to 44.9% above 2007 levels. While an unprecedented pipeline of new supply is beginning to exert pressure on multifamily fundamentals nationally, vacancy rates remained relatively tight at 4.4% in the first quarter of 2016.
  • HEALTHY OFFICE FUNDAMENTALS SUPPORTED QUARTERLY PRICE GAINS. Office prices increased 0.7% in the first quarter of 2016 and 8.8% in the 12-month period ending in March 2016, as office rent growth and occupancy rates have nearly reached the market’s previous peak. Price growth was higher in the Prime Office Metros Index, which advanced by a stronger 1.9% for the first quarter of 2016 and 12.1% for the 12-month period ending in March 2016.    
  • DESPITE FIRST QUARTER SLIDE, U.S. RETAIL INDEX REMAINS WITHIN 1% OF PREVIOUS PEAK. Prices for retail property dipped 0.4% in the first quarter of 2016 but were still up 6.4% in the 12-month period ending in March 2016. Despite the recent slowdown, retail pricing remains the second-best performer among the four major property types behind multifamily. Pricing gains for retail property aggregated in top-tier trade areas during the recovery. As a result, the Prime Retail Metros Index is now 17% above its prior peak after advancing 5.2% in the 12-month period ending in March 2016.
  • U.S. INDUSTRIAL INDEX POSTED 6.7% ANNUALIZED GAIN DESPITE 0.1% DIP IN FIRST QUARTER. Industrial market fundamentals remained healthy through the first quarter of 2016. Vacancies dropped below their lowest point in the previous cycle, while industrial rents continued to increase, besting the other major property types with annual growth of over 6% for the 12-month period ending in March 2016. Despite the recent slowdown in the first quarter of 2016, the U.S. Industrial index advanced 6.7% in the 12-month period ending in March 2016. Core industrial markets remained in favor as the Prime Industrial Metros Index advanced by 11.3% in the 12-month period ending in March 2016. 
  • U.S. HOSPITALITY INDEX SEES 3.8% FIRST QUARTER INCREASE, STRONGEST GROWTH RATE AMONG ALL SIX PROPERTY INDICES.  The Hotel Index was one of only two property-type indices, along with the U.S. Land Index, to post double-digit annualized growth through March 2016. National hotel occupancies have climbed well above last cycle’s highs, fueling room rate and RevPAR growth as well as investor demand. While the Hospitality Index suffered the largest peak-to-trough decline in the last cycle, dropping 44.2%, it has now moved to within 5.1% of its pre-recession peak.
  • LAND INDEX GAINED 1.7% IN FIRST QUARTER, UP 10.9% IN 12-MONTH PERIOD ENDING IN MARCH 2016. Driven by strong demand for development sites across all property sectors, the Land Index closed the first quarter of 2016 with a double-digit annualized growth rate. Despite the healthy recent gains, the Land Index, which did not reach its trough for this cycle until 2012, remains 15.1% below its previous peak.

Quarterly CCRSI Regional Results

  • NORTHEAST REMAINED FASTEST-GROWING REGIONAL INDEX IN FIRST QUARTER. Thanks to a strong concentration of top-tier markets that have been a magnet for investment since early in the current cycle, the Northeast Composite Index advanced 0.8% in the first quarter of 2016 and 9% in the 12-month period ended in March 2016, pushing it 15.5% above its prerecession peak. All four property type indices within the Northeast region have surpassed their pre-recession peaks as well. The Northeast Multifamily and Retail Indices led pricing growth in the region and have soared past their prior peak pricing levels by 45.8% and 25.1%, respectively. Meanwhile, solid growth in the Northeast Office and Industrial Indices during the first quarter of 2016 propelled both indices to 4.3% and 6.3%, respectively, above their pre-recession peak levels. 
  • WEST REGION MOVED TO WITHIN 1% OF ITS PREVIOUS PEAK. After advancing 0.5% in the first quarter of 2016 and 8.2% in the 12-month period ending in March 2016, West Composite Index is now just 0.6% shy of its peak in the last cycle. The West Multifamily Index increased 11% and the West Office Index increased 10.6% in the 12-month period ended in March 2016—the second- and third-strongest growth rates among all 16 regional property type indices—behind only the Northeast Multifamily Index.  Supporting such exceptional price growth has been strong fundamentals in tech-driven markets, including San Francisco and San Jose, which continued to post double-digit office rent growth for the 12-month period ended in March 2016.
  • SOUTH REGION INCREASED 0.3% IN FIRST QUARTER AND 7.8% IN 12-MONTH PERIOD ENDED IN MARCH 2016. Similar to trends in the West region, the South Office and South Multifamily indices led pricing growth in the South region, expanding 9.4% and 9.9%, respectively, in the 12-month period ended in March 2016. Growth in the South Multifamily Index has been particularly strong, surpassing its pre-recession peak by 7.5% in March 2016, the only property type index in the South region to do so. This was despite having the steepest peak-to-trough decline (42.3%) of any property type in the region during the downturn. 
  • MIDWEST REGION LAGGED BEHIND FOUR MAJOR REGIONS DECLINING 1% IN FIRST QUARTER. All four regional property indices within the Midwest region were impacted by the slowdown, with the Midwest Industrial and Retail Indices declining the furthest, by 1.5% and 1.1%, respectively, in the first quarter of 2016. Meanwhile, the Midwest Multifamily Index ticked down a more modest 0.3%, and the Midwest Office Index fell 0.9% in the first quarter of 2016. 

About the CoStar Commercial Repeat-Sale Indices

The CoStar Commercial Repeat-Sale Indices (CCRSI) is the most comprehensive and accurate measure of commercial real estate prices in the United States. In addition to the national Composite Index (presented in both equal-weighted and value-weighted versions), national Investment-Grade Index and national General Commercial Index, which we report monthly, we report quarterly on 30 sub-indices in the CoStar index family. The sub-indices include breakdowns by property sector (office, industrial, retail, multifamily, hospitality, and land), by region of the country (Northeast, South, Midwest, West), by transaction size and quality (general commercial, investment-grade), and by market size (composite index of the prime market areas in the country).

The CoStar indices are constructed using a repeat sales methodology, widely considered the most accurate measure of price changes for real estate. This methodology measures the movement in the prices of commercial properties by collecting data on actual transaction prices. When a property is sold more than one time, a sales pair is created. The prices from the first and second sales are then used to calculate price movement for the property. The aggregated price changes from all of the sales pairs are used to create a price index.

More charts accompanying this release are available at 

http://www.globenewswire.com/NewsRoom/AttachmentNg/204f9d31-c1e1-4097-8499-1df0b50d1a08

For more information about the CCRSI Indices, including the full accompanying data set and research methodology, legal notices and disclaimer, please visit http://costargroup.com/costar-news/ccrsi.

ABOUT COSTAR GROUP, INC.

CoStar Group, Inc. (Nasdaq:CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. LoopNet is the most heavily trafficked commercial real estate marketplace online with more than 10 million registered members. Apartments.com, ApartmentFinder.com and ApartmentHomeLiving.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Through an exclusive partnership with Move, a subsidiary of News Corporation, Apartments.com is the exclusive provider of apartment community listings across Move’s family of websites, which include realtor.com®, doorsteps.com and move.com.  CoStar Group’s websites attracted an average of approximately 24 million unique monthly visitors in aggregate in the first quarter of 2016. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe and Canada with a staff of approximately 2,600 worldwide, including the industry’s largest professional research organization. For more information, visit www.costargroup.com.                                                                                                            

This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations, beliefs, intentions or strategies regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences:  the risk that the trends represented or implied by the indices will not continue or produce the results suggested by such trends, including continuing elevated liquidity in the U.S. real estate markets as a result of favorable market conditions and deteriorating international economic conditions, and the rising cost of debt and the expected resulting slower deal volume and price growth in 2016; and the risk that transaction activity, investor demand, market supply, vacancy rates, absorption and commercial real estate pricing levels and growth will not continue at the levels or with the trends indicated in this release.  More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2015, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, each of which is filed with the SEC, including in the “Risk Factors” section of that filing, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MEDIA Contact:Keosha Burns, Director of Public Relations, CoStar Group (kburns@costargroup.com)

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AV Homes Reports Results for First Quarter 2016

April 28, 2016 0

First Quarter 2016 Highlights – as compared to the prior year first quarter (unless otherwise noted)

  • Net income increased to $0.8 million, or $0.04 per diluted share, compared to a net loss of ($5.0) million, or ($0.23) per diluted share 
  • Total revenue increased 111% to $124.1 million
  • Homebuilding revenue increased 127% to $121.2 million
  • Closings increased by 215 units to 428 units
  • Average selling price for closed homes increased 13% to $283,000 per home
  • Net new order value increased 61% to $209.9 million on a 41% increase in units
  • Backlog value increased 103% to $334.8 million on 1,053 units
  • Selling communities increased to 60 from 36 and communities with closings increased to 58 from 30

SCOTTSDALE, Ariz., April 28, 2016 (GLOBE NEWSWIRE) — AV Homes, Inc. (Nasdaq:AVHI), a developer and builder of active adult and primary residential communities in Florida, Arizona and the Carolinas, today announced results for its first quarter ended March 31, 2016. Total revenue for the first quarter of 2016 increased 111% to $124.1 million from $58.8 million in the first quarter of 2015.  Net income and diluted earnings per share increased to $0.8 million and $0.04 per share, respectively, compared to a net loss of ($5.0) million and ($0.23) per share in the first quarter of 2015.  Results from the first quarter of 2016 include the contribution from our acquisition of Bonterra Builders, which closed on July 1, 2015. 

Roger A. Cregg, President and Chief Executive Officer, commented, “AV Homes has continued its positive momentum of producing profitable growth with a strong start to 2016.  Homebuilding revenue increased 127% in the quarter, driven by a doubling of the number of homes closed and increases in our average selling price.”  Mr. Cregg continued, “Our revenue growth and improving margins, combined with our strong first quarter sales and backlog reflect the favorable market positions and execution of our business plan.”

The increase in total revenue for the first quarter of 2016 compared to the prior year period included a 127% increase in homebuilding revenue to $121.2 million.  The increase in homebuilding revenue was driven by the acquisition of Bonterra Builders, volume increases due to a greater number of communities with closings in each of our existing markets, and higher average selling prices due to price increases and improvements in the mix of homes sold.  During the first quarter of 2016, the Company closed 428 homes, a 101% increase from the 213 homes closed during the first quarter of 2015, and the average unit price per closing improved 13% to approximately $283,000 from approximately $250,000 in the first quarter of 2015.  

Homebuilding gross margin improved to 18.3% in the first quarter of 2016 from 16.4% in the first quarter of 2015.  Homebuilding gross margin is inclusive of the impact associated with the expensing of previously capitalized interest of 2.6% and 2.3% in the 2016 and 2015 periods, respectively.  Gross margins increased in each of our geographic segments, primarily due to selective price increases, certain cost reduction measures and changes in the mix of communities due to both organic and acquisition growth. 

Homebuilding SG&A expense as a percentage of homebuilding revenue was 13.4% in the first quarter of 2016 compared to 18.2% in the first quarter of 2015.  The improvement was primarily due to the increased scale of the business which allows us to leverage the cost base, particularly in the Carolinas with the acquisition of Bonterra Builders.  Corporate general and administrative expenses as a percentage of homebuilding revenue improved to 3.3% in the first quarter of 2016 from 6.2% in the same period a year ago driven by the continued achievement of favorable cost leverage by effectively managing costs while growing the revenue of the business.

The number of new housing contracts signed, net of cancellations, during the three months ended March 31, 2016 increased 41% to 682, compared to 485 units during the same period in 2015.  The increase in housing contracts was primarily attributable to the increase in selling communities to 60 from 36 as a result of both acquisition and organic growth.  The average sales price on contracts signed in the first quarter of 2016 increased 15% to approximately $308,000 from approximately $269,000 in the first quarter of 2015.  The aggregate dollar value of the contracts signed during the first quarter increased 61% to $209.9 million, compared to $130.5 million during the same period one year ago.  The backlog value of homes under contract but not yet closed at March 31, 2016 increased 103% to $334.8 million on 1,053 units, compared to $164.7 million on 603 units at March 31, 2015.

Beginning with the quarter ended March 31, 2016, the selling, general and administrative expenses related to homebuilding previously included in our “Homebuilding Expenses” line item on the Statement of Operations have been combined with corporate general and administrative expenses and reclassified into a separate new line item called “Selling, general and administrative expenses” to enhance the visibility to our core homebuilding operations and conform with standard industry presentation. 

The Company will hold a conference call and webcast on Friday, April 29, 2016 to discuss its first quarter financial results.  The conference call will begin at 8:30 a.m. EDT.  The conference call can be accessed live over the telephone by dialing (877) 643-7158 or for international callers by dialing (914) 495-8565; please dial-in 10 minutes before the start of the call. A replay will be available on April 29, 2016 beginning at 11:30 a.m. and can be accessed by dialing (855) 859-2056 or for international callers by dialing (404) 537-3406; the conference ID is 93630887. The telephonic replay will be available until May 6, 2016. The webcast, which can be accessed by going to the Investor Relations section of AV Homes’ website at www.avhomesinc.com, is accompanied by an Investor Presentation.  A replay of the original webcast will be available shortly after the call.

AV Homes, Inc. is engaged in homebuilding and community development in Florida, Arizona and the Carolinas. Its principal operations are conducted in the greater Orlando, Jacksonville, Phoenix, Charlotte and Raleigh markets. The Company builds communities that serve both active adults (55 years and older) as well as people of all ages. AV Homes common shares trade on NASDAQ under the symbol AVHI. For more information, visit www.avhomesinc.com.

This news release, the conference call, webcast and other related items contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward looking statements, involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the cyclical nature of the homebuilding industry and its dependence on broader economic conditions; availability and suitability of undeveloped land and improved lots; ability to develop communities within expected timeframes; increases in interest rates and availability of mortgage financing; our ability to access sufficient capital; our ability to generate sufficient cash to service our indebtedness and potential need for additional financing; terms of our financing documents that may restrict our operations and corporate actions; fluctuations in interest rates; our ability to purchase outstanding notes upon certain fundamental changes; our ability to obtain letters of credit and surety bonds; cancellations of home sale orders; competition for home buyers, properties, financing, raw materials and skilled labor; declines in home prices in our primary regions; inflation affecting homebuilding costs or deflation affecting declines in spending and borrowing levels; the prices and supply of building materials and skilled labor; the availability and skill of subcontractors; elimination or reduction of tax benefits associated with home ownership; warranty and construction defect claims; health and safety incidents in homebuilding activities; the seasonal nature of our business; impacts of weather conditions and natural disasters; resource shortages and rate fluctuations; value and costs related to our land and lot inventory; overall market supply and demand for new homes; our ability to recover our costs in the event of reduced home sales; conflicts of interest involving our largest stockholder; contractual restrictions under a stockholders agreement with our largest stockholder; dependence on our senior management; effect of our expansion efforts on our cash flows and profitability; effects of government regulation of development and homebuilding projects; raising healthcare costs; development liabilities that may impose payment obligations on us; our ability to realize our deferred income tax asset; costs of environmental compliance; impact of environmental changes; dependence on digital technologies and potential interruptions; future sales or dilution of our equity; impairment of intangible assets; and other factors described in our most recent Annual Report on Form 10-K for and our other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov.  Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release, the conference call, the Investor Presentation and the webcast. AV Homes disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.

AV HOMES, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
         
    March 31, 2016   December 31, 2015
Assets   (unaudited)    
Cash and cash equivalents $   15,574     $   46,898  
Restricted cash       1,283         26,948  
Land and other inventories     629,780         582,531  
Receivables       10,161         7,178  
Property and equipment, net     34,496         34,973  
Investments in unconsolidated entities     1,187         1,172  
Prepaid expenses and other assets     11,241         17,144  
Goodwill       19,295         19,295  
Total assets   $   723,017     $   736,139  
         
Liabilities and Stockholders’ Equity      
         
Liabilities        
Accounts payable $   34,768     $   33,606  
Accrued and other liabilities     30,065         38,826  
Customer deposits     12,922         8,629  
Estimated development liability     32,512         32,551  
Senior notes, net     309,454         320,846  
Total liabilities     419,721         434,458  
         
Stockholders’ equity      
Common stock, par value $1 per share     22,761         22,444  
Additional paid-in capital     400,226         399,719  
Accumulated deficit     (116,672 )       (117,463 )
        306,315         304,700  
Treasury stock     (3,019 )       (3,019 )
Total stockholders’ equity     303,296         301,681  
Total liabilities and stockholders’ equity   $   723,017     $   736,139  
         

AV HOMES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except per share amounts)
(unaudited)
       
  Three Months Ended

March 31,
   2016     2015 
Revenues      
Homebuilding $   121,233     $   53,349  
Amenity and other     2,782         2,777  
Land sales     75         2,704  
Total revenues     124,090         58,830  
       
Expenses      
Cost of homebuilding revenue     98,997         44,589  
Amenity and other     2,586         2,383  
Land sales     16         285  
Total real estate expenses     101,599         47,257  
       
Selling, general and administrative expenses     20,384         13,380  
Interest income and other     (24 )       (56 )
Interest expense     1,272         3,257  
       
Income (loss) before income taxes     859         (5,008 )
Income tax expense     68         –   
Net income (loss) and comprehensive income (loss) $   791     $   (5,008 )
       
Basic income (loss) per share $   0.04     $   (0.23 )
Diluted income (loss) per share $   0.04     $   (0.23 )
       
Note:  Selling, general and administrative expenses related to homebuilding previously included in Homebuilding expenses have been combined with corporate general and administrative expenses and reclassified into a separate new line item called “Selling, general and administrative expenses” to enhance the visibility to our core homebuilding operations and conform with standard industry presentation.  For the quarter ended March 31, 2015, selling, general and administrative costs of $9.7 million that were previously presented in Homebuilding expenses are now included in Selling, general and administrative expenses.

The following table summarizes our information for reportable segments for the three months ended March 31, 2016 and 2015 (in thousands):
       
  Three Months Ended

March 31,
   2016     2015 
Operating income (loss):      
Florida      
Revenues      
Homebuilding $   66,047     $   41,906  
Amenity and other     2,782         2,777  
Land sales     75         2,704  
Total revenues     68,904         47,387  
       
Expenses      
Cost of homebuilding revenue     51,917         34,601  
Homebuilding selling, general and administrative     9,208         6,588  
Amenity and other     2,554         2,345  
Land sales     16         285  
Segment operating income     5,209         3,568  
       
Arizona      
Revenues      
Homebuilding     21,674         9,907  
Total revenues     21,674         9,907  
       
Expenses      
Cost of homebuilding revenue     18,546         8,613  
Homebuilding selling, general and administrative     3,042         2,322  
Amenity and other     32         38  
Segment operating income (loss)     54         (1,066 )
       
Carolinas      
Revenues      
Homebuilding     33,512         1,536  
Total revenues     33,512         1,536  
       
Expenses      
Cost of homebuilding revenue     28,534         1,375  
Homebuilding selling, general and administrative     4,047         816  
Segment operating income (loss)     931         (655 )
       
Operating income $   6,194     $   1,847  
       
Unallocated income (expenses):      
Interest income and other     24         56  
Corporate general and administrative expenses     (4,087 )       (3,654 )
Interest expense     (1,272 )       (3,257 )
Income (loss) before income taxes     859         (5,008 )
Income tax expense     68         –   
Net income (loss) $   791     $   (5,008 )
       

Data from closings for the Florida, Arizona and the Carolinas segments for the three months ended March 31, 2016 and 2015 is summarized as follows (dollars in thousands):
       
For the three months ended March 31, Number of Units Revenues Average Price

Per Unit
       
2016      
Florida 251           $  66,047   $ 263  
Arizona 81              21,674     268  
Carolinas 96              33,512     349  
Total 428            $ 121,233     283  
       
2015      
Florida 169            $ 41,906   $ 248  
Arizona 39                  9,907     254  
Carolinas 5              1,536     307  
Total 213            $ 53,349     250  
       

Data from contracts signed for the Florida, Arizona and the Carolinas segments for the three months ended March 31, 2016 and 2015 is summarized as follows (dollars in thousands):
           
For the three months

ended March 31,
Gross Sales Cancellations Net Sales  Dollar Value  Average Price

Per Unit
           
2016          
Florida 444                (64 )     380         $ 105,695   $ 278    
Arizona 169                (41 ) 128           39,315     307  
Carolinas 187                (13 ) 174           64,927     373  
Total 800                (118 ) 682         $ 209,937     308  
           
2015          
Florida 423                (60 ) 363         $ 95,595   $  263  
Arizona 120                (12 ) 108           30,588     283  
Carolinas 19                (5 ) 14           4,356     311  
Total 562                (77 ) 485         $ 130,539     269  
           

Backlog for the Florida, Arizona and the Carolinas segments as of March 31, 2016 and 2015 is summarized as follows (dollars in thousands):
       
As of March 31, Number of Units Dollar Volume Average Price

Per Unit
       
2016      
Florida 545               $ 156,464   $ 287    
Arizona 280                 90,170     322  
Carolinas 228                 88,177     387  
Total 1,053               $ 334,811     318  
       
2015      
Florida 467               $ 125,474   $ 269  
Arizona 121                 34,465     285  
Carolinas 15                 4,763     318  
Total 603               $ 164,702     273  
       

 

 

Investor Contact: Mike BurnettEVP, Chief Financial Officer480-214-7408m.burnett@avhomesinc.com

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COLLIERS INTERNATIONAL ANNOUNCES HISTORIC KIRKBRIDE CAMPUS AVAILABLE FOR REDEVELOPMENT

April 28, 2016 0

FERGUS FALLS, MINN., April 28, 2016 (GLOBE NEWSWIRE) — The City of Fergus Falls, Minnesota, is seeking a developer, investor, or visionary group to purchase the 100-year-old Fergus Falls RTC, known as the Kirkbride Facility. Built in 1888, this historic landmark is the most complete intact example of “Kirkbride-inspired” architecture in the United States, and was placed on the National Register of Historic Places in 1986.

The architecturally-significant property contains over 500,000 square feet of existing facilities, and rests on 19 acres of land within the city limits of Fergus Falls. It is currently available for redevelopment, with millions of dollars of incentives available. Located at the hub of higher education for the region, the solid structure and sprawling layout of this property make it a prime candidate for Education, Health Services and Housing projects. Green and Clean Tech industries, as well as technology companies, will find the site flexible enough to incorporate modern facilities while retaining the historic character.

“The city of Fergus Falls has an architectural gem on their hands, and the right group could really take it and make it shine,” states Dan Peterson, a Senior Associate with Colliers International | Minneapolis-St. Paul. “This is a once-in-a-lifetime opportunity to repurpose a historic facility in great condition, and bring it into the future so it leads to economic activity for years to come.”

This is a time-sensitive opportunity, so interested parties are asked to visit www.kirkbridemn.com and contact Dan Peterson directly for more information on the campus.

About Colliers International Group Inc.

Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is a global leader in commercial real estate services with more than 16,300 professionals operating from 502 offices in 67 countries. With an enterprising culture and significant insider ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include brokerage, global corporate solutions, investment sales and capital markets, project management and workplace solutions, property and asset management, consulting, valuation and appraisal services, and customized research and thought leadership. Colliers International has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 10 consecutive years, more than any other real estate services firm.

For the latest news from Colliers International, visit Colliers.com, or follow us on Twitter: @ColliersIntl and LinkedIn. To see the latest news on Colliers International in the Twin Cities, follow @ColliersMSP

 

Photos accompanying this release are available at:

http://www.globenewswire.com/newsroom/prs/?pkgid=40034

http://www.globenewswire.com/newsroom/prs/?pkgid=40035

Jennifer SchraderSenior Marketing StrategistColliers International | Minneapolis-St. Paul952 897 7763

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