American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (November 2018)
23 slides from American Homes 4 Rent's investor presentation, Nov 6, 2018
Slide 1: Investor Highlights November 2018
InvestorInvestor Highlights Highlights November 2018
Slide 2: Legal Disclosures: Forward-Looking Statements
Legal Disclosures 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 p
Slide 3: Table of Contents
Table of Contents SFR Sector: Macro Landscape Drives Strong Demand ……….…………… 4 AMH At A Glance ………………………………………………………….................. 5 AMH Strategy ……………………………………………………………..................... 6 AMH Operating Approach ……..……………………………………………………… 7 How & Where We Invest ..………..............
Slide 4: Macro Landscape Drives Strong Demand
Macro Landscape Drives Strong Demand Household Formations Outpace Housing Supply (1) 10 Year Sequential Growth in Single-Family Rental Stock (2) 2.0 1.5 1.0 (In (In millions) 0.5 0.0 1980 1985 1990 1995 2000 2005 2010 2015 Single Family Starts Multi Family Starts Long Term Average Household Formatio
Slide 5: AMH At A Glance
AMH At A Glance 52,464 high-quality Only Investment 6.2% Same Home Approx. $250 properties in 22 Grade Rated FY 2017 Core NOI million of annual states (1) balance sheet in after Capex retained cash flow ~ 200,000 residents SFR sector growth ~ 1,292 employees,(1) 95.8% Same-Home Phoenix, AZ of which
Slide 6: The AMH Strategy
The AMH Strategy • Optimize AMH’s differentiated operating platform OPERATIONS • Balance centralized control and oversight, with local office touch STRATEGY • 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 approach differentiates AMH operating efficiency Centralized Support Enhanced efficiency • Call centers Superior control • Tenant U/W Ability to make nimble • Lease execution enhancements • Rental pricing Standardized processes • Maintenance oversight F
Slide 8: How We Invest
How we Invest 2018 Acquisition & Development Outlook • Expect to invest $500 to $600 million through the following channels: • Traditional MLS purchases/Foreclosure Auction • AMH Development & National Builder Program • Bulk/Portfolio opportunities would be in addition to the above channels MLS/Fore
Slide 9: Where We Invest
Where We Invest Diversified footprint, comprised of high growth markets, ideally positioned for long-term sustainable growth and portfolio optimization flexibility Midwest: % of Total Properties: 17.3% 3Q18 SH Avg. Occupied Days: 95.4% 3Q18 Blended Rate Spread: 3.4% Favorable AMH market trends relat
Slide 10: Same-Home Operational Update
Same-Home Operational Update (1) (1) 2018 Same-Home Outlook • Core revenues increased 4.4% to $172.0 million, Average Occupied Days Percentage 94.75% - 95.25% compared to $164.8 million for the prior year Core revenues growth 3.75% - 4.25% • Core property operating expenses growth Property tax expen
Slide 11: Investment Grade Balance Sheet
Investment Grade Balance Sheet Capital Structure (1) Debt Maturity Schedule (2) (4) $1,402 (In thousands, exceptFixed share Rate and Debt per share amounts) (In millions)) (Figures in millions,23.1% except per share amounts) 12/31/2016 Common Shares & OP Units $956 68.2% $910 Floating Rate Debt 0.9%
Slide 12: Strong Same-Home Performance
Strong Same-Home Performance (Amounts in thousands, except property data) 3Q17 4Q17 1Q18 2Q18 3Q18 Number of Same-Home properties 38,168 38,168 38,168 38,168 38,168 Rents from single-family properties $ 164,466 $ 165,786 $ 168,210 $ 170,666 $ 171,991 Operating Highlights Fees from single-family prop
Slide 13: Industry Leading Efficiency Metrics
Industry Leading Efficiency Metrics (Dollars in thousands) 3Q17 4Q17 1Q18 2Q18 3Q18 Adjusted EBITDAre Margins Total revenues, excluding tenant charge-backs $ 210,742 $ 214,569 $ 222,197 $ 231,566 $ 235,900 Property operating expenses, net (63,110) (60,929) (66,353) (67,131) (70,758) Property managem
Slide 14: Defined Terms: Average Occupied Days Percentage and Core NOI
Defined Terms and Non-GAAP Reconciliations Average Occupied Days Percentage Highlights(1) The number of days a property is occupied in the period divided by the total number of days the property is owned during the same period. This calculation excludes properties identified as part of our dispositi
Slide 15: Reconciliations of Core Revenues, Core NOI to GAAP
Defined Terms and Non-GAAP Reconciliations 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): (1)
Slide 16: Net Income to Core NOI Reconciliation
Defined Terms and Non-GAAP Reconciliations For the Three Months Ended Highlights(1) Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, 2017 2017 2018 2018 2018 Net income $ 19,097 $ 30,533 $ 21,525 $ 25,898 $ 30,281 Remeasurement of participating preferred shares (8,391) (1,500) (1,212) - - Loss on early extin
Slide 17: Credit Metrics
Defined Terms and Non-GAAP Reconciliations Credit Metrics We present the following selected metrics because we believe they are helpful as supplemental measures in assessing our ability to service our financing obligations and in evaluating balance sheet leverage against that of other real estate co
Slide 18: Net Debt to Adjusted EBITDAre
Defined Terms and Non-GAAP Reconciliations Net Debt to Adjusted EBITDAre Sep 30, 2018 Total Debt $ 2,712,688 Less: cash and cash equivalents (110,138) Less: asset-backed securitization certificates (25,666) Less: restricted cash related to securitizations (45,478) Net debt $ 2,531,406 Adjusted EBITD
Slide 19: EBITDA / EBITDAre / Adjusted EBITDAre Definitions
Defined Terms and Non-GAAP Reconciliations EBITDA / EBITDAre / Adjusted EBITDAre / Adjusted EBITDAre after Capex and Leasing Costs / Adjusted EBITDAre Margin / Adjusted EBITDAre after Capex and Leasing Costs Margin EBITDA is defined as earnings before interest, taxes, depreciation and amortization.
Slide 20: Net Income to EBITDA and Adjusted EBITDAre Reconciliation
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of net income, determined in accordance with GAAP, to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted EBITDAre after Capex and Leasing Costs, Adjusted EBITDAre Margin and Adjusted EBITDAre after Capex and Leasing Costs Margin
Slide 21: Platform Efficiency Percentage
Defined Terms and Non-GAAP Reconciliations 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 compensatio
Slide 22: Property Enhancing Capex and Recurring Capital Expenditures
Defined Terms and Non-GAAP Reconciliations 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. Recurring Capital Expenditures For our Same-Home portfolio, r
Slide 23: 2018 Outlook
2018 Outlook Full Year 2018 Same-Home Previous Guidance Current Guidance Average Occupied Days Percentage 95.0% - 95.5% 94.75% - 95.25% (1) Core revenues growth 4.0% - 4.5% 3.75% - 4.25% (2) Property tax expense growth 2.75% - 3.75% 2.75% - 3.75% Average R&M and turnover costs, net, plus Recurring C
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