Just a few months ago, Altisource Residential celebrated the fact that it was about to double the size of its portfolio of single-family rental homes, a move that marked a significant step in the company’s transition from a buyer of non-performing loans to an operator of rental homes.

The deal, announced in late September, would bring 4,262 single-family rental properties into Altisource Residential’s portfolio for an aggregate purchase price of $652.3 million.

That transaction fell right in line with the company’s stated plans to shift its business. The company announced last year that it planned to grow its portfolio of single-family rental homes by 900% – from 2,516 to more than 25,000 – over the next few years.

But Altisource Residential’s move to single-family rentals isn’t without its stumbling blocks along the way, as the company announced Monday that it posted a net loss of $57.6 million, or $1.06 per diluted share, in the third quarter.

That brings the company’s net loss for the first nine months of 2016 to $166.8 million, or $3.05 per diluted share, compared to net income of $20.2 million, or $0.35 per diluted share, in the same time period last year.

The company noted in its earnings release that many of its metrics for the success of its single-family rental business are improving, including the increase of its SFR portfolio by 115% in the third quarter.

According to Altisource Residential, its SFR portfolio is now 8,541 properties.

Additionally, Altisource Residential stated that its stabilized rentals grew by 140% to 7,466 properties with 95% leased during the third quarter. Also, the company noted that its rental revenue increased 12% over the second quarter to $9.6 million, bringing its year-to-date rental revenue to $24.2 million.

Altisource Residential also noted that it reduced its non-rental REO portfolio by 16% and its NPL portfolio by 9% since June 30.

“Residential continues to deliver on its stated goals. In the third quarter, we completed a transformative acquisition that doubled the size of our single-family rental portfolio and diversified our property management infrastructure, while continuing to improve our operating metrics,” said the company’s CEO, George Ellison.

“The successful acquisition of a large portfolio of highly stabilized single-family rental properties in our target markets was a significant accomplishment for Residential,” Ellison continued. “We continue to execute on our objectives and make strong progress on our strategy of building long-term stockholder value through the creation of a large portfolio of rental homes that we target operating at a best-in-class yield.”

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