REVEN HOUSING REIT, INC. (NASDAQ:RVEN) Files An 8-K Financial Statements and Exhibits

REVEN HOUSING REIT, INC. (NASDAQ:RVEN) Files An 8-K Financial Statements and Exhibits
Item 9.01 of Form 8-K, and should be read in conjunction with the Initial Report.

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Item 9.01 Financial Statements and Exhibits.

(a) Financial Statements of Real Estate Property Acquired. The following financial statements are submitted with this Current Report on Form 8-K/A and are filed herewith:

Oklahoma 89 Homes

Report of Independent Auditors

Statements of Revenues Over Certain Operating Expenses for the nine months ended September 30, 2018 (unaudited) and the year ended December 31, 2017

Notes to Statements of Revenues Over Certain Operating Expenses

(b) Unaudited Pro Forma Financial Information. The following financial information is submitted with this Current Report on Form 8-K/A and is filed herewith:

Reven Housing REIT, Inc.

Unaudited Pro Forma Consolidated Balance Sheet as of September 30, 2018

Notes to Unaudited Pro Forma Consolidated Balance Sheet as of September 30, 2018

Unaudited Pro Forma Statement of Operations for the Nine Months Ended September 30, 2018

Notes to Unaudited Pro Forma Statement of Operations for the Nine Months Ended September 30, 2018

Unaudited Pro Forma Statement of Operations for the Year Ended December 31, 2017

Notes to Unaudited Pro Forma Statement of Operations for the year ended December 31, 2017

to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

REVEN HOUSING REIT, INC.

Dated: February 27, 2019 /s/ Thad L. Meyer
Thad L. Meyer,
Chief Financial Officer

REPORT OF INDEPENDENT AUDITORS

To the Board of Directors and Stockholders of

Reven Housing REIT, Inc.

We have audited the accompanying statement of revenues over certain operating expenses of Oklahoma 89 Homes for the year ended December 31, 2017, and the related notes to the financial statement.

Management’s Responsibility for the Financial Statement

Management is responsible for the preparation and fair presentation of the statement of revenues over certain operating expenses in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the statement of revenues over certain operating expenses that is free of material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on the statement of revenues over certain operating expenses based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of revenues over certain operating expenses is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement of revenues over certain operating expenses. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the statement of revenues over certain operating expenses, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the statement of revenues over certain operating expenses in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the statement of revenues over certain operating expenses.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the statement of revenues over certain operating expenses referred to above presents fairly, in all material respects, the revenues and certain operating expenses described in Note 2 of the Oklahoma 89 Homes for the year ended December 31, 2017, in accordance with accounting principles generally accepted in the United States of America.

Other Matters

As described in Note 2, the statement of revenues over certain operating expenses was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, and is not intended to be a complete presentation of the revenues and expenses of Oklahoma 89 Homes. Our opinion is not modified with respect to this matter.

Irvine, California

February 27, 2019

OKLAHOMA 89 HOMES

STATEMENTS OF REVENUES OVER CERTAIN OPERATING EXPENSES

Nine Months Year
Ended Ended
September 30, December 31,
(unaudited)
Rental income $ 675,791 $ 808,393
Operating expenses:
Property operating and maintenance 160,796 164,014
Real estate taxes 53,009 70,789
Total operating expenses $ 213,805 $ 234,803
Revenues over certain operating expenses $ 461,986 $ 573,590

See the accompanying notes to statements of revenues over certain operating expenses.

OKLAHOMA 89 HOMES

NOTES TO STATEMENTS OF REVENUES OVER CERTAIN OPERATING EXPENSES

For the Nine Months Ended September 30, 2018 (unaudited)

and the Year Ended December 31, 2017

1. DESCRIPTION OF REAL ESTATE PROPERTY

Reven Housing REIT, Inc. (the “Company”), through a wholly-owned subsidiary, acquired 89 properties located in the Oklahoma City metropolitan area,
About REVEN HOUSING REIT, INC. (NASDAQ:RVEN)

Reven Housing REIT, Inc. is a holding company. The Company is an internally managed real estate investment trust. It is engaged in the acquisition, ownership and operation of portfolios of leased single family homes in the United States. Its objective is to generate cash flow and distribute resulting profits to its stockholders in the form of distributions, while gaining home price appreciation at the same time through the ownership of its portfolio properties. It operates its portfolio properties as single family rentals (SFRs), and generates its revenue from rental income from the existing tenants of the SFRs. As of December 31, 2015, it owned a total of 527 homes, of which 256 homes were in the Jacksonville, Florida metropolitan area; 168 homes were in the Houston, Texas metropolitan area; 94 homes were in the Memphis, Tennessee metropolitan area (with two of the Memphis homes located across the border in Mississippi), and nine homes were in the Atlanta, Georgia metropolitan area.

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