American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2016)
18 slides from American Homes 4 Rent's investor presentation, Sep 9, 2016
Slide 1: Investor Highlights September 2016
Investor HighlightsSEPTEMBER 2016
Slide 2: Legal Disclosures
2 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
Slide 3: American Homes 4 Rent Highlights
3 Large, Diversified Portfolio (1) • 48,038 high-quality, well-located single-family properties in 22 states / 42 markets • Average age of properties of 13 years • Total leased percentage of 96.3% Strong Balance Sheet • Conservative approach to leverage • Net debt / TEV: 27.5% (2); Net debt / LQA Ad
Slide 4: AMH Business Strengths
4 AMH BUSINESS STRENGTHS Tenant Driven Business • AMH targets properties that fit an ideal tenant profile: • Traditional middle class neighborhoods in growing markets • Minimum 3 bedrooms, 2 bathrooms, two car garage • Newer properties in attractive neighborhoods Significant Scale Advantage • Well d
Slide 5: Single-Family Industry Overview
5 Owner Occupied 64% / 74.5M units Apartments & Other Rentals 23% / 26.5M units TOTAL HOUSING STOCK (2) SUBSTANTIAL GROWTH IN RENTER HOUSEHOLD DEMAND (2)HOUSEHOLD FORMATIONS OUTPACE HOUSING SUPPLY (1) 34% 58% 69% 75% 78% 30% 40% 50% 60% 70% 80% 90% 2000 2002 2004 2006 2008 2010 2012 2014 2016 Under
Slide 6: National High Quality Portfolio in Attractive Markets
6 NATIONAL HIGH QUALITY PORTFOLIO IN ATTRACTIVE MARKETS (1) As of June 30, 2016. Percentage leased, average age and average sq. ft. per home exclude 1,582 held for sale single -family properties. (2) Based on number of properties as of June 30, 2016. Dallas-Fort Worth, TX, 9.4% Atlanta, GA, 8.4% Hou
Slide 7: Opportunities: Portfolio Growth & Stabilization
7 OPPORTUNITIES • Integration of 1Q16 ARPI acquisition is complete • Portfolio essentially stabilized • AMH is the largest owner/operator of single-family rentals TOTAL PORTFOLIO GROWTH & STABILIZATION PORTFOLIO GROWTH • Proven management platform capabilities • Ability to integrate and stabilize po
Slide 8: Property Life Cycle
8 PROPERTY LIFE CYCLE • Acquisition channels: - Auction - Broker / MLS - NPL / Other - Bulk / Portfolio acquisition • Diversified footprint - 22 states / 42 markets - Growing demographics • Dedicated team - All acquisitions underwritten / executed by AMH personnel • Comprehensive inspection and reno
Slide 9: Successful Marketing and Leasing Process
9 LEASE EXECUTION TENANT UNDERWRITING LEASING & MANAGEMENT (1) LEASING CHANNELS Multiple Listing Service Referral • Rental History • Credit History • Background Check • Average Income: $85,000+ • ~5X Income / Rent National Call Center, Las Vegas, NV Designed to minimize potential tenant defaults • 4
Slide 10: Proactive Maintenance
10 PROACTIVE MAINTENANCEMAINTENANCE • Completed property management internalization in Q4 2013 • Centralized management functions provide consistency and efficiency of execution • In-house maintenance program provides enhanced customer service and efficiencies in portfolio maintenance in markets com
Slide 11: Strong Same-Home Operating Performance
11 (1) Core NOI is a supplemental non -GAAP financial measure. Refer to “Defined terms and Non-GAAP Reconciliations” in the Appendix. (2) Year over year percentage growth comparisons based on respective quarterly same -home populations. Accordingly, growth percentages for 2Q15 – 1Q16 are based on a
Slide 12: Stable and Improving Same-Home Operating Metrics
12 2.8% 4.6% 5.2% 5.4% 6.6% 5.4% 0% 2% 4% 6% 8% 10% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 13,446 17,332 20,963 23,812 25,361 25,288 Number of Same-Home properties: (1) $532 $697 $707 $501 $446 $518 $0 $200 $400 $600 $800 $1,000 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 (16%) (26%)Y-o
Slide 13: Balance Sheet Strength & Flexibility
13 TOTAL ENTERPRISE VALUE BALANCE SHEET STRENGTH & FLEXIBILITY (1) Pro forma for ( i) the repayment of the retired credit facility in July 2016 with the net proceeds from the June 2016 Series E perpetual preferred shares and (ii) use of cash and borrowings under the new revolving credit facility to
Slide 14: Appendix
14 APPENDIX
Slide 15: Portfolio Highlights by Market
15 (1) Excludes 1,582 held for sale single -family properties as of June 30, 2016. (2) Represents 22 markets in 16 states. Highlights(1) Market Gross Book Value ($mm) % of Gross Book Value Number of Single-Family Properties (1) % of Total Single-Family Properties Avg. Gross Book Value per Property A
Slide 16: Defined Terms and Non-GAAP Reconciliations
16 Highlights(1) DEFINED TERMS AND NON-GAAP RECONCILIATIONS Core Net Operating Income ("Core NOI"), Same-Home Core NOI and Same-Home Core NOI after capital expenditures Core NOI and Same-Home Core NOI are supplemental non-GAAP financial measures that we define as rents and fees from single-family pr
Slide 17: Defined Terms and Non-GAAP Reconciliations
17 (1) Beginning January 1, 2016, property operating expenses for vacant single -family properties has been included in property operating expenses in the consolidated statements of operations. Highlights(1) DEFINED TERMS AND NON-GAAP RECONCILIATIONS The following is a reconciliation of net loss att
Slide 18: Defined Terms and Non-GAAP Reconciliations: EBITDA and Adjusted EBITDA
18 DEFINED TERMS AND NON-GAAP RECONCILIATIONS EBITDA and Adjusted EBITDA 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. Adjusted EBITDA is a supplementa
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