American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (June 2019)
25 slides from American Homes 4 Rent's investor presentation, Jun 3, 2019
Slide 1: Investor Highlights June 2019
Investor Highlights June 2019
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 ➢ AMH At A Glance 4 ➢ Operational Update 5 ➢ SFR Sector: Macro Landscape Drives Strong Demand 6 ➢ Cornerstones of the AMH Strategy 7 ➢ AMH Development 8-10 ➢ Investment Grade Balance Sheet 11 ➢ Financial Results 12-13 ➢ Defined Terms 14-24 3
Slide 4: AMH At A Glance
AMH At A Glance 52,923 high-quality Only Investment 5.3% Same Home Approx. $250 million properties in 22 Grade Rated 1Q19 Core NOI of retained annual states(1) balance sheet in after Capex cash flow(2) ~ 200,000 residents SFR sector growth(1) ~1,200 employees, 96.7% Same-Home of which over 800 1Q 20
Slide 5: Operational Update
Operational Update • Strong start to 2019, with same-home 1Q19 Average Occupied Days Percentage of 95.5%, a 70 Strong basis point increase over 1Q18 Occupancy Levels • Leasing momentum continues into spring season – same-home QTD May-2019 Average Occupied Days Percentage of 95.8% AMH Development • 1
Slide 6: SFR Sector: Macro Landscape Drives Strong Demand
Macro Landscape Drives Strong Demand (1) Fundamental Shifts Support Single-Family Rental Demand Strong AMH Profile • Over 660,000 inbound sales calls to Las Vegas Leasing Call Center in 2018 • Approximately 29.5 million AMH website page views in 2018 with over 50% coming from mobile users • 16% year
Slide 7: Cornerstones of the AMH Strategy
Cornerstones of the AMH Strategy • Optimize AMH’s differentiated operating platform, with focus on consistent execution Operational • Balance centralized control and oversight, with local office touch Optimization • Enhance operating efficiencies with innovative and proprietary technology solutions
Slide 8: AMH Development – Revolutionizing the Industry
AMH Development – Revolutionizing the Industry Data driven insights from AMH’s years of experience formulate blueprint for the “perfect” rental home – made possible by AMH’s unique full lifecycle development capabilities and management platform. The AMH Developed Home Desirable Durable Efficient •Ex
Slide 9: AMH Development – Revolutionizing the Industry
AMH Development – Revolutionizing the Industry Premium Return •Construction costs = significant discount to market retail value •Rental rate premium on higher quality home & finishes •More efficient expenditure profile Attractive Risk Profile •No AMH risk to pre-entitlement land •Zero “homebuilder l
Slide 10: AMH Development – Case Study (Steele Forest)
AMH Development – Case Study (Steele Forest) Community Highlights • Steele Forest Community located in Atlanta, GA • 64 total units: • 2,200 average square feet • Average 4 bed / 2.5 bath • Estimated total project cost $13.7 million • LTD construction costs within 2% of budget • 6.0% average unit ec
Slide 11: Investment Grade Balance Sheet
Investment Grade Balance Sheet Capital Structure (1) Debt Maturity Schedule (2) (4) $1,291 Fixed Rate Debt 24.3% (In millions)) Common Shares $955 $956 & OP Units 67.4% Floating Rate $510 Debt 0.9% Preferred Shares $121 7.4% $16 $21 $21 $21 $10 $10 $10 Liquidity (3) Revolving credit facility Asset-b
Slide 12: Strong Same-Home Performance
Strong Same-Home Performance (Amounts in thousands, except property data) 1Q18 2Q18 3Q18 4Q18 1Q19 Number of Same-Home properties 40,781 40,781 40,781 40,781 40,781 Rents from single-family properties $ 179,760 $ 182,019 $183,684 $ 184,464 $ 186,894 Operating Highlights Fees from single-family prope
Slide 13: Industry Leading Efficiency Metrics
Industry Leading Efficiency Metrics (Dollars in thousands) 1Q18 2Q18 3Q18 4Q18 1Q19 Adjusted EBITDAre Margins Total revenues, excluding tenant charge-backs $ 220,197 $ 229,950 $ 233,151 $ 234,032 $ 239,806 Property operating expenses, net (64,353) (65,515) (68,009) (64,612) (68,094) Property managem
Slide 14: Defined Terms: Average Monthly Realized Rent
Defined Terms and Non-GAAP Reconciliations Average Monthly Realized Rent For the related period, Average Monthly Realized Rent is calculated as rents from single-family properties divided by the product of (a) number of properties and (b) Average Occupied Days Percentage, divided by the number of mo
Slide 15: Core Net Operating Income and Same-Home Core NOI After Capex
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, unencumbered and encumbered portfolios, is a supplemental non-GAAP financial measure that we define as cor
Slide 16: Reconciliations of Core Revenues and 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): For
Slide 17: Net Income to Core NOI Reconciliation
Defined Terms and Non-GAAP Reconciliations For the Three Months Ended Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2018 2018 2018 2018 2019 Net income $ 21,525 $ 25,898 $ 30,281 $ 34,734 $ 33,091 Remeasurement of participating preferred shares (1,212) - - - - Loss on early extinguishment of debt - 1,447
Slide 18: 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 19: Net Debt to Adjusted EBITDAre
Defined Terms and Non-GAAP Reconciliations Net Debt to Adjusted EBITDAre Mar 31, 2019 Total Debt $ 2,986,953 Less: cash and cash equivalents (154,584) Less: asset-backed securitization certificates (25,666) Less: restricted cash related to securitizations (43,535) Net debt $ 2,763,168 Adjusted EBITD
Slide 20: 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 21: Net Income to 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 22: 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 23: 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 24: Adjusted FFO Attributable to Common Share and Unit Holders
Defined Terms and Non-GAAP Reconciliations Adjusted FFO attributable to common share and unit holders is a non-GAAP financial measure that we use as a supplemental measure of our performance. We compute this metric by adjusting Core FFO attributable to common share and unit holders for (1) recurring
Slide 25: Guidance Summary
Defined Terms and Non-GAAP Reconciliations Guidance Summary Full Year 2019 Core FFO attributable to common share and unit holders $1.06 - $1.14 Same-Home Core revenues growth 3.2% - 4.2% Core property operating expenses growth 3.5% - 4.5% Core NOI growth 3.0% - 4.0% Core NOI After Capital Expenditur
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