SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Starwood Waypoint Homes (NYSE:SFR) (the “Company” or “SFR”) today provided an update on the impact of Hurricane Irma and Harvey.
“Our top priority remains the safety of our residents and our thoughts and concerns are with those affected by both storms,” said Fred Tuomi, Chief Executive Officer of Starwood Waypoint Homes. “We are committed to engaging with our residents and their respective communities in Florida and Houston to provide much- needed assistance. We are grateful that all associates are safe with no reported injuries and that our inspections thus far have found the amount of damage to our properties to be relatively limited as a proportion of our overall portfolio.”
Starwood Waypoint Homes is actively reaching out to all of its Florida residents to begin resolving issues and inspecting homes as power, transportation and access allows. Based on the current conditions, the home inspection process that began is expected to take several weeks to complete. The Company has proactively put in place a task force comprised of associates, vendors and suppliers from across the country that have already been deployed to accessible areas. SFR’s advanced service technology platform and centralized 24/7 call center are being utilized to receive and dispatch service requests. All of Starwood Waypoint Homes’ associates and their families in the Florida area are currently safe and accounted for.
As of June, 30, 2017, the Company owned 3,929 homes in Tampa, 3,812 homes in Miami and 1,947 homes in Orlando.
Starwood Waypoint Homes has completed an initial evaluation of its properties in Houston impacted by Hurricane Harvey. The Company continues to actively work with its residents to vigorously respond and remediate damage. Based on its assessments, a small number of homes will require significant remediation and there will be additional homes that will require more limited repairs. Specifically, 135 homes, or approximately 0.4 percent of the Company’s overall portfolio at June 30, 2017, incurred major flooding, while an additional approximately 625 properties incurred some damage related to roofs or water intrusion, with the majority being minor in nature. The Company estimates total cost of repair for homes damaged by Hurricane Harvey to be less than $10 million.
At this time, all of the Company’s offices are open, and leasing activity has resumed in all markets.
The Company's property and casualty insurance policies cover wind and flood damage as well as business interruption costs, subject to deductibles and limits.
About Starwood Waypoint Homes
Starwood Homes is one of the largest publicly traded owners and operators of single-family rental homes in the United States. Starwood Waypoint Homes acquires, renovates, leases, maintains and manages single-family homes in markets that exhibit favorable demographics and long-term economic trends, as well as strengthening demand for rental properties.
Forward-Looking Statements
Certain statements in this press release and the quarterly supplement/presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are based on certain assumptions and discuss future expectations, describe future plans and strategies and contain financial and operating projections or state other forward-looking information. The Company’s ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company’s actual results and performance could differ materially from those set forth in, or implied by, the forward-looking statements. Factors that could materially and adversely affect the Company’s business, financial condition, liquidity, results of operations and prospects, as well as the Company’s ability to make distributions to its shareholders, include, but are not limited to: the factors referenced in the Company’s Annual Report on Form 10-K; unanticipated increases in financing and other costs, including a rise in interest rates; the availability, terms and the Company’s ability to effectively deploy short-term and long-term capital; the possibility that unexpected liabilities may arise from the Company’s merger (the “Merger”) with Colony American Homes (“CAH”), including the outcome of any legal proceedings that have been or may be instituted against the Company, CAH or others in connection with the Merger and the associated transactions; changes in the Company’s business and growth strategies; the Company’s ability to hire and retain highly skilled managerial, investment, financial and operational personnel; volatility in the real estate industry, interest rates and spreads, the debt or equity markets, the economy generally or the rental home market specifically, whether the result of market events or otherwise; events or circumstances that undermine confidence in the financial markets or otherwise have a broad impact on financial markets, such as the sudden instability or collapse of large financial institutions or other significant corporations, terrorist attacks, natural or man-made disasters, or threatened or actual armed conflicts; declines in the value of single-family residential homes, and macroeconomic shifts in demand for, and competition in the supply of, rental homes; the availability of attractive investment opportunities in homes that satisfy the Company’s investment objectives and business and growth strategies; the Company’s ability to convert the properties it acquires into rental homes generating attractive returns and to effectively control the timing and costs relating to the renovation and operation of the properties; the Company’s ability to lease or re-lease its rental homes to qualified residents on attractive terms or at all; the failure of residents to pay rent when due or otherwise perform their lease obligations; the Company’s ability to effectively manage its portfolio of rental homes; the concentration of credit risks to which the Company is exposed; the rates of default or decreased recovery rates on the Company’s target assets; the adequacy of the Company’s cash reserves and working capital; potential conflicts of interest with Starwood Capital Group and its affiliates and managed investment activities; the timing of cash flows, if any, from the Company’s investments; the Company’s expected leverage; financial and operating covenants contained in the Company’s credit facilities and securitizations that could restrict its business and investment activities; effects of derivative and hedging transactions; the Company’s ability to maintain effective internal controls as required by the Sarbanes-Oxley Act of 2002 and to comply with other public company regulatory requirements; the Company’s ability to maintain its exemption from registration as an investment company under the Investment Company Act of 1940, as amended; actions and initiatives of the U.S., state and municipal governments and changes to governments’ policies that impact the economy generally and, more specifically, the housing and rental markets; changes in governmental regulations, tax laws (including changes to laws governing the taxation of real estate investment trusts (“REITs”) and rates, and similar matters; limitations imposed on the Company’s business and its ability to satisfy complex rules in order for the Company and, if applicable, certain of its subsidiaries to qualify as a REIT for U.S. federal income tax purposes and the ability of certain of the Company’s subsidiaries to qualify as taxable REIT subsidiaries for U.S. federal income tax purposes, and the Company’s ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; and estimates relating to the Company’s ability to make distributions to its shareholders in the future.
Undue reliance should not be placed on any forward-looking statement and all of the uncertainties and risks described above, as well as those more fully discussed in the reports and other documents filed by the Company with the Securities and Exchange Commission from time to time should be considered. Except as required by law, the Company is under no duty to, and the Company does not intend to, update any of the forward-looking statements appearing herein, whether as a result of new information, future events or otherwise.