American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (November 2022)
32 slides from American Homes 4 Rent's investor presentation, November 2022
Slide 1: Investor Highlights
Investor Highlights November 2022
Slide 2: Legal Disclosures
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 relate t
Slide 3: AMH At A Glance
AMH At A Glance SFR Resiliency and One-of-a-Kind Investment Grade Durability Driven by Built-For-Rent Balance Sheet Enables Continued Demand Program Opportunistic Growth ➢ Est. 13.2%(1) Core FFO Growth at ➢ Largest Integrated Single- ➢ Industry Leading Investment Guidance Midpoint for 2022, Family R
Slide 4: Diversified Portfolio Footprint
Diversified Portfolio Footprint Positioned for Long-Term Sustainable Growth and Portfolio Optimization Flexibility Seattle, 2.0% Chicago, 2.8% Indianapolis, 5.1% Boise Salt Lake City, 3.3% Denver Columbus, 3.7% Cincinnati, 3.7% Las Vegas, 3.0% Nashville, 5.5% Raleigh, 3.7% Charlotte, 6.8% Phoenix, 5
Slide 5: Same-Home Operational Update
Same-Home Operational Update Transitioning to New Post-Covid Norm, Well Above Historic Levels Average Occupied Days Average Blended Change in Rent 98.0% 10.0% 9.5% 97.0% 97.4% 97.5% 8.0% 9.0% 8.7% 97.1% 8.5% 96.9% 96.0% 6.0% 95.0% 4.0% 94.9% 4.0% 94.8% 3.4% 94.0% 2.0% 93.0% 0.0% 3Q October 3Q Octobe
Slide 6: SFR Macro Tailwinds
SFR Macro Tailwinds AMH Stone Creek Development Atlanta Market 6
Slide 7: Favorable Supply Landscape
Favorable Supply Landscape Historically Low Existing Home Inventories Expected New Construction Levels Likely not Enough to Have Led to Supply Constraints Solve the Country’s Housing Shortage TTM Avg. National Existing Home Inventory(1) (MM) Single-Family Permits(2) (MM) 2.0 3.3 1.6 2.8 Single-Famil
Slide 8: Sustained Demand Tailwinds
Sustained Demand Tailwinds SFR Value Proposition Further Benefitted By Millennials are Aging into Prime Single Family Living Years Increased Cost of Ownership Est. Single Family Rents vs. Cost of Home Ownership(1) Projected Population Growth(2) (Top 20 AMH Markets) 40% 2.0% 34% 33% 30% 1.5% 20% 20%
Slide 9: US Net Migration Trends
US Net Migration Trends 2020 – 2021 Migration Continues to Benefit the AMH Footprint Seattle, -25K Portland, -6K Minneapolis, -13K Northeast(5), -459K Boise, +24K Salt Lake City, -4K Chicago, -103K Northern California(1), -164K Reno, +6K Denver, -5K Indianapolis, +9K Las Vegas, +15K Nashville, +14K
Slide 10: AMH Today
AMH Today AMH Copper Rim Development Salt Lake City Market 10
Slide 11: 2022 Guidance
2022 Guidance Projecting Another Year of Double-Digit Earnings Growth Full Year Midpoint. Core FFO per share and unit(1) $1.52 – $1.56 $1.54 Core FFO per share and unit growth 11.8% – 14.7% 13.2% Same-Home Portfolio: Core revenues growth 8.00% – 9.00% 8.50% Core property operating expenses growth 7.
Slide 12: Investment Grade Balance Sheet
Investment Grade Balance Sheet High Quality and Well-Laddered Maturity Schedule – Recently Upgraded by S&P to BBB Debt Maturity Schedule(2)(3) (MM) $3,460 Preferred Common Shares, 1.3% Shares & OP Liquidity(4) Units, 73.9% $1,644 $18.0B Total $951 Capitalization(1) $5 $21 $10 $10 Fixed Rate Remainin
Slide 13: AMH vs. the Peer Set
AMH vs. the Peer Set 3-Year Core FFO Growth CAGR(1) 3-Year Total Return(2) (Midpoint of Guidance) 24% 23% 11.5% 10.5% 9.7% 9.3% 11% 9% 3.9% -12% -12% 2.6% -20% 1.6% -26% 0.4% AMH MAA INVH CPT UDR ESS AVB EQR AMH MAA INVH CPT AVB UDR EQR ESS Est. 2023 YoY Household Growth(3) Est. 2023 YoY Population
Slide 14: Differentiated Growth Strategy
Differentiated Growth Strategy AMH Enclave at Madera Parc Development Phoenix Market 14
Slide 15: Three-Pronged Growth Strategy
Three-Pronged Growth Strategy Consistent Growth from AMH Development Complemented by Nimble and Opportunistic Acquisition Channels That Can be “Dialed Up or Down” Based on Market Conditions AMH Development Program Traditional MLS Acquisitions • Internal development program provides National Builder
Slide 16: Opportunities on the Horizon
Opportunities on the Horizon AMH is Uniquely Positioned to Capitalize on Opportunities Caused by Recent Economic Disruption Elevated Incremental Development Borrowing Rates Builder Inventory Potential Future Market For Sale Uncertainty Growth Opportunities MLS Channel for AMH Private SFR Portfolios
Slide 17: AMH Development: Not All BTR is the Same
AMH Development: Not All BTR is the Same Building the Ideal Rental Home Through the Lens of our Best-In-Class Operating Platform Other BTR Product Design and create ideal rental Homes and Communities using Less opportunity for alignment of Strategy data and insights from AMH’s integrated developme
Slide 18: AMH Development
AMH Development A Consistent Driver of Earnings Growth, Fueled by 15,000+ Land Pipeline at Locked in Prices AMH Development Deliveries AMH Development Land Pipeline(1) 3,000 Total Lots Owned and Optioned 16,000 15,000+ 2,500 14,000 13,000 2,150 2,054 12,000 2,000 1,647 10,000 9,000 1,500 8,000 Midpo
Slide 19: SFR Owner, Operator, & Developer
SFR Owner, Operator, & Developer Internal Development Program Integrated with AMH Operating Platform Provides Unique Ability to Optimize Portfolio and Platform through Continuous Data Feedback Loops Technology Driven Operating Platform Integrated AMH Development Program Innovative technology systems
Slide 20: Leaders in ESG
Leaders in ESG AMH Walden Woods Development Tampa Market 20
Slide 21: ESG Commitment
ESG Commitment Providing Quality, Sustainable Housing that Our Residents Desire Building for the Future Fostering Strong Communities Leading with Integrity Efficient, durable homes that • Launched third-party • Responsible, Strong are better for residents and the resident satisfaction survey Reputat
Slide 22: Recent ESG Recognitions
Recent ESG Recognitions Hawes omes Top ESG REGIONAL Regional Performer TOP RATED by Sustainalytics 2022 Great Place To Work* 2022 America’s Most Responsible Companies by Newsweek and Statista 2022 Best Workplaces in Real Estate by Fortune
Slide 23: Corporate Governance Highlights
Corporate Governance Highlights ▪ Independent Chairman of the Board ▪ Annual election of trustees Independent & Accountable ▪ Majority voting standard (plurality carve‐out voting standard only in contested elections) Stewardship ▪ Annual Board self-evaluation process ▪ 85% Independent trustees ▪ Reg
Slide 24: Appendix
Appendix
Slide 25: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations 2022 Guidance The Company does not provide guidance for the most comparable GAAP financial measures of net income or loss, rents and other single-family property revenues and property operating expenses, or a reconciliation of the forward-looking non-GAAP f
Slide 26: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Core Net Operating Income ("Core NOI“) Core NOI, which we also present separately for our Same-Home, unencumbered and encumbered portfolios, is a supplemental non-GAAP financial measure that we define as core revenues, which is calculated as rents and other
Slide 27: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Credit Ratios 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 28: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Fixed Charge Coverage For the Trailing Twelve Months Ended Sep 30, 2022 Interest expense per income statement $ 126,885 Less: amortization of discounts, loan costs and cash flow hedges (11,088) Add: capitalized interest 51,382 Cash interest 167,179 Dividend
Slide 29: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations EBITDA / EBITDAre / Adjusted EBITDAre EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure and is used by us and others as a supplemental measure of performance. EBITDAre is a supplement
Slide 30: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Funds from Operations (“FFO”) / Core FFO attributable to common share and unit holders FFO attributable to common share and unit holders is a non-GAAP financial measure that we calculate in accordance with the definition approved by NAREIT, which defines FF
Slide 31: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of net income attributable to common shareholders, as determined in accordance with GAAP, to Core FFO attributable to common share and unit holders (amounts in thousands, except share and per share data): For the Years Ende
Slide 32: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Same-Home Property A property is classified as Same-Home if it has been stabilized longer than 90 days prior to the beginning of the earliest period presented under comparison. A property is removed from Same-Home if it has been classified as held for sale
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