American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (March 2018)
23 slides from American Homes 4 Rent's investor presentation, Mar 5, 2018
Slide 1: Investor Highlights March 2018
I n v e s t o r H i g h l i g h t s Investor Highlights March 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and est
Slide 3: Table of Contents
Single-family Rental Sector: Compelling Macro Landscape …… 4 AMH At A Glance ……………………………………………………….................. 5 AMH Strategy …………………………………………………………..................... 6 AMH Operating Approach ……………………………………………………… 7 How & Where We Invest ……………......................................
Slide 4: Compelling Macro Landscape
Owner Occupied 55% / ~ 75.7M units Apartments & Other Rentals 31% / ~ 43.1M units Total Housing Stock (2) Substantial Growth In Renter Household Demand (2)Household Formations Outpace Housing Supply (1) 36% 59% 69% 75% 79% 30% 40% 50% 60% 70% 80% 90% 2000 2002 2004 2006 2008 2010 2012 2014 2016 Unde
Slide 5: AMH At A Glance
AMH At A Glance 51,239 high-quality properties in 22 states (1) ~ 200,000 residents Only Investment Grade Rated balance sheet in SFR sector 95.1% Same-Home February 2018 ending occupancy percentage 6.2% Same Home FY 2017 Core NOI after Capex growth $220 million of annual retained cash flow (1) As of
Slide 6: The AMH Strategy
The AMH Strategy OPERATIONS STRATEGY • Optimize AMH’s differentiated operating platform • Balance centralized control and oversight, with local office touch • Enhance operating efficiencies with innovative and proprietary technology solutions • Management and execution of all stages of operational l
Slide 7: The AMH Operating Approach
The AMH Operating Approach Centralized Support • Call centers • Tenant U/W • Lease execution • Rental pricing • Maintenance oversight Boots on The Ground • Leasing agents • Property managers • Maintenance technicians Field Management • Local district office • Regional & district managers Centralized
Slide 8: How We Invest
(1) Foreclosure Auction/MLS Built for Rental Bulk/Portfolio Opportunities • AMH personnel underwrite and inspect all homes acquired through foreclosure auction & MLS • Create value through discount to replacement cost & renovations • Additional scale leverages highly efficient operating platform • 5
Slide 9: Where We Invest
Where We Invest Note: Total properties percentage based on counts as of December 31, 2017. (1) Source: Bureau of Labor Statistics December 2017 (2) Source: JBREC Single Family Rent Index for the twelve months ended December 2017 (3) Actual new lease rental rate spreads as reported by the Company for
Slide 10: Strong Financial Results
$2,034 $1,967 $1,961 $1,925 $1,949 $150 $155 $160 $165 4Q16 1Q17 2Q17 3Q17 4Q17 Total Core Revenues Annual Maintenance Expenditures per property (1) 11.4% 9.0% 7.4% 5.5% 1.5% Y-o-Y growth in quarterly NOI after capex (2): Strong Financial Results Same-Home: Revenue Growth & Expense Controls (1) Best
Slide 11: Capital Structure and Investment Grade Balance Sheet
Capital Structure Debt Maturity Schedule (Figures in millions, except per share amounts) 12/31/2016 (In thousands, except share and per share amounts) Note: Refer to Defined Terms and Non-GAAP Reconciliations in the Appendix, as well as the 4Q17 Supplemental Information Package, for definitions of m
Slide 12: Strong Same-Home Performance
Strong Same-Home Performance Operating Highlights 4Q16 1Q17 2Q17 3Q17 4Q17 Number of Same-Home properties 36,645 36,645 36,645 36,645 36,645 Rents from single-family properties $ 155,746 $ 156,491 $ 158,089 $ 158,328 $ 159,262 Fees from single-family properties 1,789 1,882 1,962 2,097 1,847 Bad debt
Slide 13: Industry Leading Efficiency Metrics
Industry Leading Efficiency Metrics (Dollars in thousands) 4Q16 1Q17 2Q17 3Q17 4Q17 Adjusted EBITDA Margins Total revenues, excluding tenant charge-backs $ 204,382 $ 205,381 $ 209,626 $ 210,742 $ 214,569 Property operating expenses, net ( 56,562) ( 56,393) ( 59,715) (63,110) ( 60,929) Property manag
Slide 14: 2018 Outlook
H i g h l i g h t s ( 1 ) 2018 Outlook Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income or loss, total revenues and property operating expenses, or a reconciliation of the above-listed forward-looking non-GAAP financial measures to the compara
Slide 15: Core NOI and Same-Home Core NOI After Capital Expenditures
H i g h l i g h t s ( 1 ) Defined Terms and Non-GAAP Reconciliations Core Net Operating Income ("Core NOI") and Same-Home Core NOI After Capital Expenditures Core NOI, which we also present separately for our Same-Home portfolio, is a supplemental non-GAAP financial measure that we define as core re
Slide 16: Reconciliations of Core Revenues and Core NOI
( 1 ) The following are reconciliations of core revenues, core property operating expenses, Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures to their respective GAAP metrics for the trailing five quarters (amounts in thousands): Dec 31, 2016 Mar 31, 2017 Jun 30, 2017 Se
Slide 17: Core NOI Reconciliation
H i g h l i g h t s ( 1 ) Dec 31, 2016 Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Net income 9,338$ 11,796$ 15,066$ 19,097$ 30,533$ Remeasurement of participating preferred shares 4,080 5,410 1,640 (8,391) (1,500) Loss on early extinguishment of debt - - 6,555 - - Hurricane-related charges,
Slide 18: Credit Metrics
Credit Metrics We present the following selected metrics because we believe they are helpful as supplemental measures in assessing the Company’s ability to service its financing obligations and in evaluating balance sheet leverage against that of other real estate companies. The tables below reconci
Slide 19: Net Debt to Adjusted EBITDA
Defined Terms and Non-GAAP Reconciliations Net Debt to Adjusted EBITDA Dec 31, 2016 Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Total Debt 2,981,062$ 2,999,587$ 2,480,787$ 2,382,871$ 2,517,216$ L ss: cash and ca h equivalents (118,799) (495,802) (67,325) (243,547) (46,156) Less: asset-backed
Slide 20: EBITDA and Adjusted EBITDA Definitions
EBITDA / Adjusted EBITDA / Adjusted EBITDA after Capex and Leasing Costs / Adjusted EBITDA Margin / Adjusted EBITDA after Capex and Leasing Costs Margin EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure and is used by us and o
Slide 21: Adjusted EBITDA Reconciliation
Dec 31, 2016 Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Net income 9,338$ 11,796$ 15,066$ 19,097$ 30,533$ Interest expense 31,538 31,889 28,392 26,592 25,747 Depreciation and amortization 74,164 73,953 72,716 74,790 75,831 EBITDA 115,040 117,638 116,174 120,479 132,111 Noncash share-based c
Slide 22: Platform Efficiency Percentage
Platform Efficiency Percentage Management costs, including (1) property management expenses, net of tenant charge-backs and excluding noncash share-based compensation expense, (2) general and administrative expense, excluding noncash share-based compensation expense and (3) leasing costs, as a perce
Slide 23: Property Enhancing Capex and Recurring Capital Expenditures
Property Enhancing Capex Includes elective capital expenditures to enhance the operating profile of a property, such as investments to increase future revenues or reduce maintenance expenditures. Defined Terms and Non-GAAP Reconciliations Recurring Capital Expenditures For our Same-Home portfolio, i
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