American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2018)
23 slides from American Homes 4 Rent's investor presentation, Sep 25, 2018
Slide 1: Investor Highlights September 2018
InvestorInvestor Highlights Highlights September 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 52,049 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) 96.6% 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: 2018 Acquisition & Development Outlook
How we Invest 2018 Acquisition & Development Outlook • Expect to invest $500 to $600 million through the following channels: • Traditional MLS purchases/ Foreclosure Auction • National Builder & AMH Development • Bulk/Portfolio opportunities would be in addition to the above channels Foreclosure Auc
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: 17.4% 2Q18 SH Avg. Occupied Days: 95.5% 2Q18 Blended Rate Spread: 4.7% Favorable AMH market trends relat
Slide 10: Operational Update
Operational Update (1) 2018 Same-Home Outlook (1) • Continued strong total portfolio and Same-Home occupancy Average Occupied Days Percentage 95.0% - 95.5% Record High • 2Q18 Same-Home average occupied days percentage increased 40 bps over prior year, to Core revenues growth 4.0% - 4.5% Occupancy Le
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,23.2% except per share amounts) 12/31/2016 Common Shares & OP Units 69.1% $956 $854 Floating Rate Debt 0.9%
Slide 12: Strong Same-Home Performance
Strong Same-Home Performance (Amounts in thousands, except property data) 2Q17 3Q17 4Q17 1Q18 2Q18 Number of Same-Home properties 38,400 38,400 38,400 38,400 38,400 Rents from single-family properties $ 165,541 $ 165,791 $ 167,114 $ 169,530 $ 171,966 Operating Highlights Fees from single-family prop
Slide 13: Industry Leading Efficiency Metrics
Industry Leading Efficiency Metrics (Dollars in thousands) 2Q17 3Q17 4Q17 1Q18 2Q18 Adjusted EBITDA Margins Total revenues, excluding tenant charge-backs $ 209,626 $ 210,742 $ 214,569 $ 222,197 $ 231,566 Property operating expenses, net ( 59,715) (63,110) ( 60,929) ( 66,353) (67,131) Property manage
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 as part of our dispositi
Slide 15: Reconciliations of Core Revenues, Core NOI and Same-Home Measures
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: Reconciliation Table (Three Months Ended)
Defined Terms and Non-GAAP Reconciliations For the Three Months Ended Highlights(1) Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, 2017 2017 2017 2018 2018 Net income $ 15,066 $ 19,097 $ 30,533 $ 21,525 $ 25,898 Remeasurement of participating preferred shares 1,640 (8,391) (1,500) (1,212) - Loss on early e
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 Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, 2017 2017 2017 2018 2018 Total Debt $ 2,480,787 $ 2,382,871 $ 2,517,216 $ 2,871,649 $ 2,717,867 Less: cash and cash equivalents (67,325) (243,547) (46,156) (203,883) (53,504) Less: asset-ba
Slide 19: EBITDA and 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, r
Slide 23: 2018 Outlook
2018 Outlook Full Year 2018 Same-Home Previous Guidance Current Guidance Average Occupied Days Percentage 94.5% - 95.5% 95.0% - 95.5% Core revenues growth 3.5% - 4.5% 4.0% - 4.5% Property tax expense growth 3.5% - 4.5% 2.75% - 3.75% Average R&M and turnover costs, net, plus Recurring Capital Expendi
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