Trending Multifamily News
The National Multifamily Housing Council (NMHC)’s Rent Payment Tracker found 79.3 percent of apartment households made a full or partial rent payment by August 6 in its survey of 11.4 million units of professionally managed apartment units across the country.
This is a 1.9-percentage point, or 223,000-household decrease from the share who paid rent through August 6, 2019 and compares to 77.4 percent that had paid by July 6, 2020. These data encompass a wide variety of market-rate rental properties across the United States, which can vary by size, type and average rental price.
“Over the past few months apartment residents have largely been able to meet their housing obligations. In no small part, this is due to the enhanced unemployment benefits enacted under the CARES Act and significant steps by apartment owners and operators to help their residents. These unemployment benefits that have proven so important to so many households have now lapsed, meaning greater financial distress for millions and the potential worsening of America’s housing affordability crisis,” said David Schwartz, NMHC Chair, and CEO and Chairman of Chicago-based Waterton.
“While President Trump announced executive orders relating to rental assistance and continued unemployment benefits, it is unclear when and if those resources will be available to families. NMHC continues to urge the Trump administration and Congressional leaders to restart negotiations and reach a comprehensive agreement on the next COVID relief package. It is critical lawmakers take urgent action to support and protect apartment residents and property owners through an extension of the benefits as well as targeted rental assistance. That support, not a broad-based eviction moratorium, will keep families safely and securely housed as the nation continues to recover from the pandemic.”
The NMHC Rent Payment Tracker metric provides insight into changes in resident rent payment behavior over the course of each month, and, as the dataset ages, between months. While the tracker is intended to serve as an indicator of resident financial challenges, it is also intended to track the recovery as well, including the effectiveness of government stimulus and subsidies.
However, noteworthy technical issues may make historical comparisons imprecise. For example, factors such as varying days of the week on which data are collected; individual companies’ differing payment collection policies; shelter-in-place orders’ effects on residents’ ability to deliver payments in person or by mail; the closure of leasing offices, which may delay operators’ payment processing; and other factors can affect how and when rent data is processed and recorded.
NMHC is proud to partner with the following firms on this initiative:
RealPage, Inc., a leading provider of software and data analytics to the real estate industry, today announced its agreement to acquire substantially all of the assets of LeaseLabs, an award-winning provider of digital marketing services and software to approximately 800,000 units in the multifamily housing industry. The acquisition of LeaseLabs is expected to extend the RealPage marketing platform by adding marketing analytic services, creative content design, direct marketing through social media channels, reputation management and geo-targeting solutions.
LeaseLabs Full Stack Marketing optimizes lead generation through direct channels, and includes the following functionality:
LeaseLabs will be significantly expanded with RealPage solutions providing (i) marketing content, content management, and digital rights management from PropertyPhotos.com, (ii) websites and microsites, and (iii) Intelligent Lead Management (ILM). This combined offering will be branded as the Go Direct Marketing Suite.
Ashley Glover, Chief Operating Officer of RealPage
“LeaseLabs is an innovator of digital marketing solutions for multifamily operators, and RealPage plans to continue to invest in LeaseLabs as a hub of digital marketing innovation, strategy, and organic brand execution. The acquisition of LeaseLabs and launch of the Go Direct Marketing Suite enables us to address the emerging change in spending patterns as our clients shift marketing spend away from indirect lead sources and build long-term equity value in their brand.”
Steven Ozbun, President of LeaseLabs
“LeaseLabs clients depend on us to manage their direct lead channels recognizing that direct leads convert at a higher rate than traditional indirect lead sources. We are thrilled to become part of RealPage as they share our vision of the future of direct digital marketing.”
Dana Zeff, CEO of LeaseLabs
“Our pioneering character, innovativeness and client collaboration have been integral to our platform's success. RealPage is committed to ensuring we maintain our brand persona in the way we execute and deliver maximum performance for our clients.”
Financial and Operational Highlights
The completion of the acquisition remains subject to certain standard conditions, including the completion of regulatory review. RealPage will acquire substantially all of the assets of LeaseLabs for an initial purchase price of approximately $103 million in cash and stock plus an earn out provision payable in cash of up to approximately $14 million upon achieving certain financial objectives. The acquisition price is subject to working capital adjustments with a 10% holdback for potential indemnification claims. For the full year 2018, LeaseLabs projects standalone revenue of $20 million, representing revenue growth of approximately 25%. The company expects the acquisition of LeaseLabs to contribute revenue of approximately $5 million and to contribute immaterially to its 2018 Adjusted EBITDA during the three month period ending December 31, 2018.
About RealPage
RealPage is a leading global provider of software and data analytics to the real estate industry. Clients use its platform to improve operating performance and increase capital returns. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves over 12,400 clients worldwide from offices in North America, Europe and Asia. For more information about RealPage, please visit www.realpage.com.
About LeaseLabs
LeaseLabs is an award-winning creative design and marketing analytics company serving the multifamily housing industry. Clients use their strategic, creative, and technology services to maximize the impact of their marketing efforts in all channels. LeaseLabs was founded in 2007, with headquarters in San Diego, California, and now serves over 260 property management companies throughout the U.S. For more information about LeaseLabs, visit their website at www.leaselabs.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking” statements relating to the expected financial and other benefits of the LeaseLabs acquisition to RealPage and its current and future customers, including expected market size opportunity, ability to extend the RealPage LeaseLabs platforms through the combined operations, plans for the integration and expansion of LeaseLabs operations, LeaseLabs’ revenue and growth projections for 2018 and contribution to RealPage’s 2018 revenue and Adjusted EBITDA, and the achievement of revenue and expense synergies that will be accretive to RealPage’s long-term revenue growth and Adjusted EBITDA margin expansion objectives. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as “expects,” “believes,” “plans,” or similar expressions and the negatives of those terms. Those forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Additional factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the possibility that general economic conditions, including leasing velocity or uncertainty, could cause information technology spending, particularly in the rental housing industry, to be reduced or purchasing decisions to be delayed; (b) an increase in insurance claims; (c) an increase in customer cancellations; (d) the inability to increase sales to existing customers and to attract new customers; (e) RealPage’s failure to integrate LeaseLabs or other acquired businesses and any future acquisitions successfully or to achieve expected synergies; (f) the timing and success of new product introductions by RealPage or its competitors (including products acquired through LeaseLabs or through other acquisitions); (g) changes in RealPage’s pricing policies or those of its competitors; (h) legal or regulatory proceedings; (i) the inability to achieve revenue growth or to enable margin expansion; and (j) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission (“SEC”) by RealPage, including its Annual Report on Form 10-K filed with the SEC on March 1, 2018 and its Quarterly Report filed with the SEC on May 10, 2018. All information provided in this release is as of the date hereof and RealPage undertakes no duty to update this information except as required by law.
RealPage, Inc. today announced its agreement to acquire substantially all of the assets of On-Site Manager, Inc. for approximately $250 million in cash. On-Site is a leasing platform for property managers and renters that assimilates leads from any source and converts them into signed leases for both the multifamily and single-family housing industries. On-Site platform offers solutions similar to RealPage’s screening and document management business, and includes prospect and resident portals, online and on premise leasing, payment processing, and eSignature lease execution solutions. RealPage intends to continue supporting the On-Site platform and expects to combine the best features of its On-Site’s platforms over time. Clients on each platform will benefit from future enhancements with no disruption.
Highlights
- Significantly improves lease management integration into major property management systems such as Yardi®, MRI® and AMSI®.
- Adds real-time consumer credit, demographic and sociographic data for 1.9 million units to the RealPage Data Analytics platform – improving the accuracy of models used to calculate
depth of demand by price point. - Extends RealPage’s leasing platform to include a complete library of leasing forms in every state for both multifamily and single-family owners and operators.
- Adds approximately 700,000 new units, opening up significant cross-selling opportunities for other solutions that collectively form the RealPage platform.
- Offers significant opportunity for operating synergies given the scale and overlap of the combined organization.
Steve Winn, CEO of RealPage
“On-Site manages the entire leasing process from lead assimilation, to applicant screening, to the final generation of signed lease documents. The acquisition increases our screening footprint and adds incremental consumer oriented data that will benefit our data analytic solutions. Most importantly, On-Site will significantly improve the integration of our leasing solutions into major property management systems such as Yardi, MRI and AMSI. By combining forces with On-Site, we believe RealPage will possess the best leasing and marketing platform for all multifamily and single family owners and operators, not just those using RealPage property management solutions.”
Bryan Hill, CFO and Treasurer of RealPage
“The combination is a compelling strategic fit and advances us closer to our 2020 financial objective of $1 billion in revenue and 30% adjusted EBITDA margin. We expect to benefit from strong operating synergies driving a purchase price valuation of10 times adjusted EBITDA as we exit 2018. We also believe considerable cross sell opportunities exist as On-Site is heavily penetrated into property management solutions offered by our competitors and we expect to add 700,000new rental units.”
Monte Jones, President of On-Site
“On-Site is considered the gold standard for online leasing, lease document generation and frictionless integration with any property management system. We are excited to become part of a much larger organization with the resources to vastly expand our platform.”
Vista Point Advisors, a San Francisco based boutique investment bank, acted as the exclusive financial advisor to On-Site.
Financial and Operational Highlights
The completion of the acquisition remains subject to certain standard conditions, including the completion of regulatory review. The acquisition purchase price of approximately $250 million in cash is subject to working capital adjustments and post-acquisition indemnification claims. On-Site is expected to generate approximately $50 million in revenue for calendar year 2017; growing 15% compared to 2016. On-Site is expected to generate $9 million in adjusted EBITDA for calendar year 2017. Integration work is expected to be completed in 2018 and RealPage expects to achieve incremental revenue and expense synergies that will be accretive to its long-term revenue growth and Adjusted EBITDA margin expansion objectives.
RealPage, Inc. today announced it has agreed to acquire substantially all of the assets of Axiometrics, a leading provider of apartment market data. Axiometrics will be combined with MPF Research, a division of RealPage. In addition, RealPage has entered into a long-term relationship with Real Capital Analytics (RCA), a leading authority on multifamily sales transaction data. Combining data from Axiometrics, MPF Research and RCA with the data analytics power of RealPage, which is based on tens of millions of real time lease transactions, will create a unique market intelligence platform. The company expects this platform to be the most-referenced apartment data analytics solution in the U.S.
Highlights
- Combines data from three of the industry’s most powerful data brands, which together possess the leading “share of voice” for multifamily data analytics as measured by media mentions, social media shares and extended follower reach.1
- Accelerates achievement of RealPage’s broad vision for its data analytics platform that enables clients to make informed decisions regarding apartment capital allocations, construction, acquisitions, management and dispositions.
- Significantly increases transparency of transactions in the $150 billion market for multifamily property sales transactions by providing the most accurate market fundamentals, forecasts and asset-level granularity.
- Contributes to RealPage’s 2020 goal of $1 billion in revenue and $300 million in adjusted EBITDA, once fully integrated by early 2018.
“The acquisition of Axiometrics furthers our goal to become the definitive source for accurate data intelligence regarding the acquisition, operation and disposition of every market-rate apartment in the U.S.,” said Steve Winn, Chairman and CEO of RealPage.
“This is a big win for our clients and the multifamily rental housing industry,” said Ron Johnsey, CEO of Axiometrics. “By combining with RealPage, we will vastly expand our data coverage and forecasting capabilities and thereby increase the value we offer to all constituents in the apartment housing industry.”
1 Source: BrandMentions.
Financial Highlights
The completion of the acquisition remains subject to certain standard conditions, and is expected to close during February 2017. The acquisition purchase price of approximately $75 million in cash is subject to working capital adjustments and post-acquisition indemnification claims. For the year ending December 31, 2016, revenue for Axiometrics is forecasted to be approximately $13.8 million, reflecting annual growth of 27% compared to 2015. RealPage expects the acquisition of Axiometrics to represent a valuation of approximately 8 times EBITDA once fully integrated by early 2018.
