Newsletter – Page 123

SmartRent Reports Double Digit First Quarter 2021 Revenue Growth

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New Units Deployed in the first quarter were 32,483, up 81% year-over-year Total Committed Units of over 600,000 as of end of March 2021 Total first quarter revenue of $19.2 million, up 16% year-over-year Deferred revenue of $64.0 million as of March 31, 2021, up 134% year-over-year Launched an exclusive integration with map visualization technology leader Engrain, as well as new product features including Guest Parking, Hubless Credentials and Salto Locks Business combination with Fifth Wall Acquisition Corp. I expected to close in the third quarter of 2021 SmartRent.com, Inc. (“SmartRent” or “the Company”), a leading provider of smart home and smart building automation for property owners, managers, developers, homebuilders and residents, which recently announced it will go public through a merger with special purpose acquisition company (“SPAC”) Fifth Wall Acquisition Corp. I (NASDAQ: FWAA) (“FWAA”), reported financial results for the first quarter ended March 31, 2021. Lucas Haldeman, Founder and CEO of SmartRent, commented, “We had an excellent quarter growing at a rapid pace while staying focused on providing the ultimate smart home experience for our clients and their residents. We remain well positioned for future success as evidenced by the substantial increase in our deferred revenue base, up 134% year-over-year, which we expect will provide a consistent revenue stream moving forward. We deployed more than 32,000 new units, a quarterly record, in the first quarter and are excited to see continued demand momentum in the second quarter.” Mr. Haldeman, continued, “Excitingly, we announced our business combination with Fifth Wall Acquisition Corp. I, sponsored by Fifth Wall, the world’s largest proptech investor, that will allow us to go public and accelerate the growth of our category-leading smart home technology. Looking ahead, we will continue to capitalize on our enhanced product offerings and industry-leading zero customer churn to further expand our growing base of recurring revenue.” First Quarter Results Total revenue increased by $2.6 million, or 16%, to $19.2 million in the first quarter of 2021, from $16.6 million in the first quarter of 2020. The year-over-year increase in revenue resulted primarily from an increased number of active subscriptions for the Company’s software service applications and an increase in the volume of installations of the Company’s smart home hardware devices. Operating expenses increased by $1.4 million to $8.8 million in the first quarter of 2021 from $7.4 million in the first quarter of 2020, primarily resulting from an increase in research and development expenses related to product portfolio enhancements and sales and marketing expenses resulting primarily from increased personnel-related costs in order to support the growth of the Company’s operations. The Company continues to invest for growth and has increased its total headcount by approximately 100% since the end of March 2020. Adjusted EBITDA was $(7.9) million in the first quarter of 2021. Net loss was $(9.3) million in the first quarter of 2021. Total deferred revenue was $64.0 million as of March 31, 2021, up from $53.5 million as of December 31, 2020 and up from $27.4 million as of March 31, 2020. Key Operating Metrics New Units Deployed in the first quarter of 2021 were 32,483, up 81% compared to 17,940 in the prior year period. As of March 31, 2021, SmartRent had a total of 187,588 Units Deployed, up 109% year-over-year. Units Booked in the first quarter of 2021 were 45,536, up 101% compared to 22,700 in the prior year period. SmartRent’s customers owned an aggregate of 2.9 million rental units and included 15 of the top 20 multifamily residential owners in the United States as of March 31, 2021. To date, the Company has not experienced any customer churn and had 604,478 Committed Units in its near-term pipeline as of March 31, 2021. ARR in the first quarter of 2021 was $5.3 million, up 101% compared to $2.7 million in the prior year period. Recent Business Highlights In May, SmartRent announced the launch of an exclusive integration with map visualization technology leader Engrain, to optimize its new parking management solution, Alloy Parking, which uses parking sensors to track vehicles on-site and provide real-time occupancy data, violation alerts and trend reporting. Earlier this year, SmartRent announced a number of new features including the addition of Guest Parking to Alloy Parking and the addition of Hubless Credentials to Alloy Access. The Company also announced the SmartRent platform supports electronic locks from Salto Locks, which provides wire-free bluetooth, low energy solutions that does not require a WiFi connection. SmartRent was named a winner in the HousingWire Tech100 Real Estate awards, recognizing the most innovative technology companies serving the mortgage and real estate industries. SmartRent was also named #1 in Growjo’s “100 Fastest Growing Companies in Arizona” Awards for 2021 and the SmartRent Support Team was recognized as a Silver Stevie Winner for Contact Center of the Year within the technology sector. Transaction with Fifth Wall On April 22, 2021, SmartRent announced that it will go public in a merger with Fifth Wall Acquisition Corp. I, a special purpose acquisition company, to accelerate the growth of its category-leading smart home technology for the global real estate industry. Following the completion of the transaction, SmartRent expects up to approximately $513 million in cash, including proceeds from an oversubscribed $155 million PIPE anchored by leading real estate companies, SmartRent customers, and institutional investors including Starwood Capital Group, Lennar, Invitation Homes, Koch Real Estate Investments, Baron Capital Group, D1 Capital Partners L.P., Long Pond Capital, LP, and Conversant Capital LLC. The equity value of the combined company is $2.2 billion at the $10.00 per share PIPE subscription price and assuming no redemptions by FWAA’s public shareholders. The transaction is expected to close during the third quarter of 2021, subject to the satisfaction of customary closing conditions, including the approval of shareholders of both parties. Upon closing of the business combination, SmartRent’s current shareholders are expected to own approximately 73% of the pro forma company, which is expected to be listed under the symbol “SMRT”. About SmartRent Founded in 2017, SmartRent is an enterprise smart home and smart building technology platform for property owners, managers and residents. The SmartRent solution is designed to provide property managers with seamless visibility and control over all their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. For more

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Mid-Year 2021 Market Sentiment Increased 57.5 Points Leading real estate consulting firm RCLCO released the results of their Real Estate Market Sentiment Survey for Mid-Year 2021, which has tracked confidence in U.S. real estate market conditions for the past 10 years. The results reflect strong optimism as the nation reopens: RCLCO’s Real Estate Market Sentiment Index (RMI), which measures sentiment on a 100-point scale, has increased 57.5 points over the past six months, from 31.6 at YE 2020 to 89.1 at Mid-2021. Says co-author Kelly Mangold, “The degree of rebound in sentiment is impressive, to levels not seen since 2015.” Respondents predict that real estate market conditions will remain largely consistent in the near future, with the RMI anticipated to drop only 7.8 points to 81.3 over the next 12 months. This is still well above the long-term (since 2011) average of 68.8. 75% of survey respondents believe real estate conditions will be moderately or significantly better in the next 12 months. 7 out of 10 respondents indicate that rising construction costs are having a significant impact on the market. Going forward, higher costs are likely to temper somewhat, though still remain a factor in 12 months. Respondents indicate that most product types have moved from contractionary phases to expansionary phases in the real estate cycle since the YE 2020 survey. Retail and office remain at the bottom of the cycle, and hospitality has reached early expansion. However, all three sectors are expected to return to Early Recovery within the next 12 months. Looking ahead, a majority of respondents expect interest rates to rise, capital flows to increase to real estate, and homeownership rates to rise. However, there was less consensus over the expected performance of cap rates over the next 12 months. Read the full report: https://bit.ly/3d6V88v About RCLCO Real Estate ConsultingSince 1967, RCLCO has been the “first call” for real estate developers, investors, public institutions and non-real estate companies seeking strategic and tactical advice regarding property investment, planning, and development. RCLCO leverages quantitative analytics platforms and a strategic planning framework to provide end-to-end business planning and implementation solutions at an entity, portfolio, or project level. RCLCO is headquartered in Bethesda, MD, and has offices in Los Angeles, CA, Orlando, FL, and Austin, TX. Learn more at www.rclco.com

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The ServiceLink State of Homebuying Report demonstrates the role of technology in homebuying and refinancing processes COVID-19 dramatically shifted the way people bought and sold homes over the last year. Like many industries, the real estate industry was forced to quickly pivot to adapt to social distancing, mask requirements and shutdowns. A new survey report, released from ServiceLink, part of the FNF family of companies and the nation’s premier provider of tech-enabled mortgage services, examines consumers’ attitudes and experiences when it comes to homebuying and refinancing, particularly over the last year, as well as the role technology plays throughout the homebuying process. The 2021 ServiceLink State of Homebuying Report features insights from 1,000 homeowners and provides a better understanding of: how high home prices and low inventory impacted their decision to move or not; if they took advantage of historic low interest rates or why they didn’t; and how the pandemic has influenced their experience with technology. Key findings of the report include: Homebuying: Many respondents considered buying a home during the COVID-19 pandemic, but only a few ultimately proceeded. Another third are optimistic about buying in 2021. 11% purchased a home in the last 12 months. Of those that did buy, 36% did so to upsize from their current home, 32% bought as an investment and 23% needed more space to work remotely. One-third (33%) considered but ultimately decided against purchasing a home in the past year. Of those that didn’t buy, 34% decided to upgrade instead, 31% said housing options were too expensive and 24% indicated their financial situation changed. Nearly one-third (32%) believe they are likely to purchase a new home in 2021. Budgeting for a home: More respondents financed their homes (43%) with cash/savings than with a traditional bank lender (42%). This gap jumps to 50% cash and 32% lender for those who bought in the last year. 28% received money from family and friends, either being gifted/inheriting funds (14%) or borrowed (14%) from those closest to them. 11% borrowed from their 401ks to finance their home. Nearly 1 in 5 (17%) of Gen Z/millennials borrowed from their 401k. Refinancing: The youngest generation of homebuyers led the surge in refinances in 2020, but many are still waiting in the wings. 30% of survey respondents refinanced last year, primarily driven by Gen Z/millennial respondents at 45%, whereas 30% of Gen X and only 6% of baby boomer respondents refinanced. Those who did not refinance last year mainly said they had a rate they were comfortable with (40%) or were waiting for rates to drop even further (27%). Additionally, 50% of respondents said they were unlikely to refinance in 2021. Technology: Technology is greatly improving and accelerating much of the homebuying process, improving consumer sentiment as well. Of those respondents leveraging tech, they primarily used it to research property listings online (74%) or take a virtual tour of properties (47%). 18% even said that moving forward they would consider buying a home without seeing it in person first. “The COVID-19 pandemic and market conditions forced the real estate industry to reassess how it serves today’s homebuyer. With the evolution of technology to help streamline the process, it’s not surprising that our data found consumers are turning to tech-enabled providers who can meet their needs through any phase of the process,” said Dave Steinmetz, president of origination services, ServiceLink. “With interest rates at historic lows, I am encouraged by the number of younger respondents who have recently refinanced. However, for those unlikely to refinance this year, many could be leaving significant money on the table if they are waiting for rates to drop even further, as our study suggests. This demonstrates an opportunity for lenders to increase awareness and education around the benefits of refinancing in today’s market.” Read the full report here. Methodology The 2021 ServiceLink State of Homebuying Report was completed online among 1,000 homeowners, ages 18+ in the U.S. Interviewing was conducted by Market Cube, a research panel company, between April 14-19, 2021. About ServiceLink ServiceLink is part of the FNF family of companies and the nation’s premier provider of digital mortgage services to the mortgage and finance industries. ServiceLink leads the way by delivering best-in-class technologies, a full product suite of services and proven experience, built on a foundation of quality, compliance and service excellence. ServiceLink provides valuation, title and closing, and flood services to mortgage originators; and default valuation, integrated default title services, vendor invoicing and claims audit services, as well as field services and auction services to mortgage servicers. ServiceLink helps clients in the lending industry and beyond achieve their strategic goals, realize greater efficiencies, and better serve their customers. For more information about ServiceLink, please visit svclnk.com.

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Long Holiday Weekend Drives Up May’s Overall Delinquency Rate – The national delinquency rate rose to 4.73% from 4.66% in April, driven largely by the three-day Memorial Day weekend foreshortening available payment windows – Similar occurrences are rare; the last time was in May 2004, at which time mortgage delinquencies jumped by more than 15% in a single month; this month saw a 1.5% increase – Early-stage delinquencies (those 30 or 60 days past due) rose by 110,200 in May, while serious delinquencies (90 or more days but not yet in foreclosure) improved for the ninth consecutive month – Despite this improvement, nearly 1.7 million first-lien mortgages remain seriously delinquent, 1.26 million more than there were prior to the pandemic – Foreclosure inventory hit yet another new record low as both moratoriums and borrower forbearance plan participation continue to limit activity, keeping foreclosure starts near record lows as well – Mortgage prepayments fell to their lowest level in more than a year, driven by falling refinance activity as well as purchase-related headwinds Black Knight, Inc. reports the following “first look” at May 2021 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market. Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 4.73%Month-over-month change: 1.51%Year-over-year change: -39.05% Total U.S. foreclosure pre-sale inventory rate: 0.28%Month-over-month change: -2.46%Year-over-year change: -26.14% Total U.S. foreclosure starts: 3,800 Month-over-month change: 2.70%Year-over-year change: -25.49% Monthly prepayment rate (SMM): 2.15%Month-over-month change: -16.88%Year-over-year change: -6.26% Foreclosure sales as % of 90+: 0.12%Month-over-month change: -12.01%Year-over-year change: 38.92% Number of properties that are 30 or more days past due, but not in foreclosure: 2,511,000Month-over-month change: 11,000Year-over-year change: -1,612,000 Number of properties that are 90 or more days past due, but not in foreclosure: 1,669,000Month-over-month change: -99,000Year-over-year change: 1,038,000 Number of properties in foreclosure pre-sale inventory: 148,000Month-over-month change: -5,000Year-over-year change: -52,000 Number of properties that are 30 or more days past due or in foreclosure: 2,659,000Month-over-month change: 6,000Year-over-year change: -1,665,000 Top 5 States by Non-Current* Percentage Mississippi: 8.56% Louisiana: 8.07% Hawaii: 7.08% Oklahoma: 6.76% Maryland: 6.64% Bottom 5 States by Non-Current* Percentage Montana: 3.20% Utah: 3.05% Washington: 3.02% Colorado: 2.98% Idaho: 2.52% Top 5 States by 90+ Days Delinquent Percentage Mississippi: 5.21% Louisiana: 5.00% Hawaii: 4.57% Nevada: 4.53% Maryland: 4.39% Top 5 States by 6-Month Improvement in Non-Current* Percentage Utah: -30.89% Colorado: -28.83% Florida: -28.38% New Jersey: -27.97% Arizona: -27.68% Top 5 States by 6-Month Deterioration in Non-Current* Percentage District of Columbia: -14.32% Maryland: -18.92% Oklahoma: -19.07% Minnesota: -19.99% Vermont: -20.11% *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. Notes:1) Totals are extrapolated based on Black Knight’s loan-level database of mortgage assets.2) All whole numbers are rounded to the nearest thousand, except foreclosure starts, which are rounded to the nearest hundred. For a more detailed view of this month’s “first look” data, please visit the Black Knight newsroom. The company will provide a more in-depth review of this data in its monthly Mortgage Monitor report, which includes an analysis of data supplemented by detailed charts and graphs that reflect trend and point-in-time observations. The Mortgage Monitor report will be available online at https://www.blackknightinc.com/data-reports/ by July 7, 2021. For more information about gaining access to Black Knight’s loan-level database, please send an email to Mortgage.Monitor@bkfs.com. About Black Knight Black Knight, Inc. (NYSE:BKI) is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage our robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively. Our clients rely on our proven, comprehensive, scalable products and our unwavering commitment to delivering superior client support to achieve their strategic goals and better serve their customers. For more information on Black Knight, please visit www.blackknightinc.com.

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Redfin’s Homebuyer Demand Index was down 14% from its peak 9 weeks ago, and pending sales have declined 10% from their early May peak Fierce competition continues to drive home prices up, but home tours, offers and pending sales have slowed, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. New listings, a key lever for home sales growth, have held up better than pending sales and are inching up increasingly close to 2019 levels. “Offers no longer pour in the day a home hits the market,” said Phoenix Redfin real estate agent John Biddle. “It has become more common for offers to come in at least a few days after a home is listed for sale. If this were three years ago, we’d marvel at how fast the market was, but it’s a clear slowdown from a few weeks ago. Now that things are opening up again and the summer is almost here, people have other priorities, like going on vacation. Plus, many homebuyers are frustrated and tired of competing, so they’ve stepped back—for now at least.” “Many measures of the housing market, such as pending home sales, mortgage applications and touring activity, showed some improvement this past week following the Memorial Day slump, but don’t call it a comeback,” said Redfin Lead Economist Taylor Marr. “Seasonally adjusted homebuyer demand is unlikely to rebound to the levels we saw earlier in the spring. While some buyers will find reprieve in less intense bidding wars this summer, others may be disappointed that homes remain hard to find.” Key housing market takeaways for 400+ U.S. metro areas:Unless otherwise noted, this data covers the four-week period ending June 13. Redfin’s housing market data goes back through 2012. Data based on homes listed and/or sold during the period: The median home-sale price increased 24% year over year to $358,766, a record high. Asking prices of newly listed homes were up 14% from the same time a year ago to a median of $363,450, down 0.2% from $364,225 during the four-week period ending June 6. Pending home sales were up 26% year over year. For the week ending June 13, pending sales were down 9.8% from the 2021 peak during the week ending May 2. New listings of homes for sale were up 9% from a year earlier, have been basically flat since early May and are now 3% below pre-pandemic 2019 levels. Active listings (the number of homes listed for sale at any point during the period) fell 35% from 2020 and have been relatively flat since late February. 56% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 43% rate during the same period a year ago, but down 0.9 percentage points from the high point of the year, set during the four-week period ending March 28. 43% of homes that went under contract had an accepted offer within one week of hitting the market, up from 31% during the same period a year earlier, but down 1.1 percentage points from the high point of the year, set during the four-week period ending March 28. Homes that sold were on the market for a median of 15 days, a new all-time low and down from 39 days a year earlier. A record 54% of homes sold above list price, up from 26% a year earlier. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased to 102.2%. In other words, the average home sold for 2.2% above its asking price. This measure is 3.7 percentage points higher than a year earlier and an all-time high. Other leading indicators of homebuying activity: Mortgage purchase applications increased 2% week over week (seasonally adjusted) during the week ending June 11. For the week ending June 17, 30-year mortgage rates decreased to 2.93%—the lowest level since February 25. Home tours as of June 13 were 28% above their level at the beginning of the year, compared to 50% increase at the same point last year according to home tour technology company ShowingTime. The drop in touring over Memorial Day weekend was larger this year than in 2020 or 2019, and the rebound was weaker, indicating more sensitivity to holidays as buyers travel and socialize more this year. Google Trends search interest in homes for sale has declined for three weeks in a row as of May 30. The seasonally adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other services from Redfin agents—was down 14% from the week ending April 11, and currently just 3% above the same period last year. To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/housing-market-update-homebuying-demand-slips/ About RedfinRedfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country’s #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we’ve saved customers more than $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people. For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email press@redfin.com. To view Redfin’s press center, click here.

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Arrived is the first and only company with SEC qualified offerings allowing anyone to buy shares in individual rental homes Arrived Homes (“Arrived”), the ground-breaking real estate investing platform that makes ownership of rental properties a possibility for everyone, announced that it has raised $37 million in a combination of seed funding and debt financing. The round is comprised of $10 million in equity financing and $27 million in debt financing. This is the company’s first financing round and was led by Core Innovation Capital with participation from Bezos Expeditions (the personal investment company of Jeff Bezos), Good Friends (a venture fund run by the CEOs and co-founders of Warby Parker, Harry’s and Allbirds), Time Ventures (the investment fund of Marc Benioff), Spencer Rascoff (General Partner of 75 & Sunny Ventures and former CEO of Zillow), Dara Khosrowshahi (CEO of Uber), Hadi Partovi (CEO and founder of Code.org), Fred Tuomi (Former CEO of Invitation Homes), PSL Ventures and Neo (Ali Partovi’s venture fund). The $37 million in funds will be used to scale the Arrived team and build up the company’s supply of rental homes across the country. To date, Arrived has secured over 30 properties throughout Arkansas, North Carolina, and South Carolina, which are either fully funded or are being prepared to offer to investors. It costs as little as $100 to invest in an Arrived rental property, with investors receiving rental income quarterly and their share of the property appreciation. Arrived is the first and only company with SEC qualified offerings allowing anyone to buy shares in individual homes. The company’s platform manages end-to-end all elements of the investment experience, from finding the most promising investment properties — based on home appreciation and local rental cash-flow potential — to the management of the day-to-day operations. “Investing in real estate is synonymous with the American dream, yet very few people are in a financial position to buy whole homes or have the time to invest in and manage rental properties,” said Ryan Frazier, CEO and co-founder of Arrived. “With Arrived, we’re breaking down the barriers to investing in rental homes, by taking a process that typically takes months and making it accessible in less than 4 minutes, starting from just $100. We’re really passionate about the opportunity to help millions of people better access this historically great asset class.” “The Arrived team is making an iconic and attractive asset class available to millions of everyday Americans: single family rental,” said Arjan Schütte, Founder and Managing Partner at Core Innovation Capital. “Through Arrived, retail investors can finally gain access to the more consistent rental income and property appreciation that comes from real estate investing, for as little as $100. They have created an entirely new category of consumer investing and we’re proud to help them democratize wealth creation in a way that’s never been done before.” “Real estate has long been a vehicle for wealthy people to diversify and grow their portfolios,” said Spencer Rascoff, co-founding General Partner of 75 & Sunny Ventures and former CEO of Zillow. “The past year has brought huge strides in the democratization of investing, including in real estate. Arrived makes investing in a rental home accessible to anyone with $100 and four minutes to spare. That’s incredibly empowering.” About The Team: Arrived was founded by Ryan Frazier (CEO), Kenny Cason (CTO), and Alejandro Chouza (COO) and is based in Seattle Washington. About Arrived Homes: Arrived Homes is a Seattle-based real-estate investing platform that makes ownership of rental properties possible for anyone and everyone. At Arrived, our mission is to empower the world to build wealth through modern real estate investing. www.arrivedhomes.com