American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (June 2018)
22 slides from American Homes 4 Rent's investor presentation, Jun 4, 2018
Slide 1: Investor Highlights June 2018
InvestorInvestor Highlights Highlights June 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 51,840 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 ~ 1,200 employees,(1) 95.9% 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 Outlook • Expect to complete $400 to $600 million of total acquisitions comprised of the following channels: • ~ $200 million in Traditional Foreclosure Auction/MLS purchases • ~ $300 million from National Builder Program & AMH Development • Bulk/Portfolio opportunitie
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: 17.6% 1Q18 SH Avg. Occupied Days: 94.8% 1Q18 Blended Rate Spread: 3.4% Favorable AMH market trends relat
Slide 10: Operational Update
Operational Update 2018 Same-Home Outlook (1) • Strong demand & AMH initiative to increase Average Occupied Days Percentage 94.5% - 95.5% occupancy drove 1Q18 leasing performance Core revenues growth 3.5% - 4.5% Record High • Highest ever reported Same-Home occupancy of 95.9% at Mar-2018 Occupancy L
Slide 11: Investment Grade Balance Sheet
Investment Grade Balance Sheet Capital Structure Debt Maturity Schedule $1,402 (In millions)) (In thousands, exceptFixed share Rate and Debt per share amounts) (Figures in millions,25.0% except per share amounts) 12/31/2016 Common Shares & OP Units $1,004 $956 63.9% Floating Rate Debt 1.9% Preferred
Slide 12: Strong Same-Home Performance
Strong Same-Home Performance (Amounts in thousands, except property data) 1Q17 2Q17 3Q17 4Q17 1Q18 Number of Same-Home properties 38,828 38,828 38,828 38,828 38,828 Rents from single-family properties $ 165,728 $ 167,350 $ 167,585 $ 168,910 $ 171,312 Operating Highlights Fees from single-family prop
Slide 13: Industry Leading Efficiency Metrics
Industry Leading Efficiency Metrics (Dollars in thousands) 1Q17 2Q17 3Q17 4Q17 1Q18 Adjusted EBITDA Margins Total revenues, excluding tenant charge-backs $ 205,381 $ 209,626 $ 210,742 $ 214,569 $ 222,197 Property operating expenses, net ( 56,393) ( 59,715) (63,110) ( 60,929) ( 66,353) Property manag
Slide 14: Defined Terms: Average Occupied Days Percentage, 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 for future sale as part
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 Reconciliation Highlights
Defined Terms and Non-GAAP Reconciliations For the Three Months Ended Highlights(1) Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2017 2017 2017 2017 2018 Net income $ 11,796 $ 15,066 $ 19,097 $ 30,533 $ 21,525 Remeasurement of participating preferred shares 5,410 1,640 (8,391) (1,500) (1,212) Loss on ear
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 the Company’s ability to service its financing obligations and in evaluating balance sheet leverage against that of other real
Slide 18: Net Debt to Adjusted EBITDA
Defined Terms and Non-GAAP Reconciliations Net Debt to Adjusted EBITDA Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2017 2017 2017 2017 2018 Total Debt $ 2,999,587 $ 2,480,787 $ 2,382,871 $ 2,517,216 $ 2,871,649 Less: cash and cash equivalents (495,802) (67,325) (243,547) (46,156) (203,883) Less: asset-b
Slide 19: EBITDA / Adjusted EBITDA Definitions
Defined Terms and Non-GAAP Reconciliations 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-GAA
Slide 20: Net Income to Adjusted EBITDA Reconciliation
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of net income, determined in accordance with GAAP, to EBITDA, Adjusted EBITDA, Adjusted EBITDA after Capex and Leasing Costs, Adjusted EBITDA Margin and Adjusted EBITDA after Capex and Leasing Costs Margin for the trailing
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, i
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