American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Nareit REITweek June 2022
30 slides from American Homes 4 Rent's conference presentation, Jun 3, 2022
Slide 1: Investor Highlights June 2022
Investor Highlights June 2022
Slide 2: Forward-Looking Statements
2 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 to beliefs, expec
Slide 3: AMH At A Glance
AMH At A Glance 3 ➢ Largest Builder of Single-Family Homes For Rent with 2,100 – 2,400 Deliveries Expected in 2022 ➢ 20,000+ Unit Land Pipeline Creates Years of Growth Stability(2) ➢ Highest-Quality Product and Superior Investment Returns ➢ Class A SFR Locations, Inside Existing AMH Footprint ➢ 2022
Slide 4: Diversified Portfolio Footprint Positioned for Long-Term Sustainable Growth
Diversified Portfolio Footprint 4 Positioned for Long-Term Sustainable Growth and Portfolio Optimization Flexibility 30+ Markets 97.5% Same-Home Avg. Occupied Days(1) 17 Years Avg. Age per Home 22 States 57,129 Properties Owned $1,856 Same-Home Avg. Mon. Realized Rent(1) 1,989 sf Avg. Square Feet pe
Slide 5: Same-Home Operational Update
5 Same-Home Operational Update 2021 2022 Note: Refer to Defined Terms and Non-GAAP Reconciliations, as well as the 1Q22 Supplemental Information Package, for defined metrics and GAAP to non-GAAP reconciliations. 97.3% 97.9% 97.5% 97.4% 90.0% 92.0% 94.0% 96.0% 98.0% 100.0% 1Q May QTD Average Occupied
Slide 6: SFR Macro: Stability Amid Global Uncertainty
SFR Macro: Stability Amid Global Uncertainty 6 Stone Creek Community by AMH Development (Atlanta, GA)
Slide 7: Favorable Supply Landscape
7 Favorable Supply Landscape 0.8 1.3 1.8 2.3 2.8 3.3 TTM Avg. National Existing Home Inventory(1) (MM) Existing Home Inventory Levels are ~55% Below the Long-Term Average as of March 2022 (1) Source: National Association of Realtors. (2) Source: U.S. Census; John Burns Real Estate Consulting, LLC. 0
Slide 8: Sustained Demand Tailwinds
-0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 Projected Population Growth(2) 33% 33% 15% 17% 19% 14% 12% 5% 12% 14% -2% -8% -10% -5% 0% 5%
Slide 9: US Net Migration Trends 2020 – 2021
9 US Net Migration Trends 2020 – 2021 Migration Continues to Benefit the AMH Footprint Indianapolis, +9K Nashville, +14K Denver, -5K Salt Lake City, -4K Seattle, -25K Phoenix, +70K Boise, +24K Northeast(6), -459K Chicago, -103K Southern California(2), -188K Northern California(1), -164K Texas Triang
Slide 10: AMH Today
AMH Today 10 Stone Creek Community by AMH Development (Atlanta, GA)
Slide 11: 2022 Guidance Unchanged
11 2022 Guidance Unchanged Full Year Midpoint Core FFO per share and unit(1) $1.53 – $1.59 $1.56 Core FFO per share and unit growth 12.5% – 16.9% 14.7% Same-Home Portfolio: Core revenues growth 7.25% – 9.25% 8.25% Core property operating expenses growth 4.75% – 6.75% 5.75% Core NOI growth 8.50% – 10
Slide 12: Core FFO Guidance Bridge
2022E Demonstrates the Combined Earnings Power from Same-Home and External Growth Programs 12 $1.36 $1.56 Core FFO Guidance Bridge $1.56 Note: Refer to Defined Terms and Non-GAAP Reconciliations, as well as the 1Q22 Supplemental Information Package, for defined metrics and GAAP to non-GAAP reconcili
Slide 13: AMH vs. the Peer Set
13 AMH vs. the Peer Set 12.0% 9.9% 8.9% 8.9% 3.1% 1.4% 0.8% -0.4% AMH INVH CPT MAA UDR ESS AVB EQR 3-Year FFO Growth Per Share CAGR(1) (Midpoint of Guidance) 1.2% 1.0% 0.9% 0.6% 0.1% -0.7% -0.9% -0.9% MAA AMH CPT INVH UDR AVB ESS EQR Est. 2022 YoY Population Growth(4) 1.9% 1.7% 1.6% 1.4% 1.1% 0.6% 0
Slide 14: Investment Grade Balance Sheet and Debt Maturity Schedule
Remaining 2022 2023 2024 2025 2026 Thereafter Debt Maturity Schedule(2)(3) (MM) Liquidity - Cash and Cash Equivalents Liquidity - Undrawn Revolving Credit Facility Revolving Credit Facility Asset-Backed Securitizations Unsecured Senior Notes Principal Amortization Liquidity - Forward Shares 14 $2,56
Slide 15: Differentiated Growth Strategy
Differentiated Growth Strategy 15 Sunrise Corner Community by AMH Development (Seattle, WA)
Slide 16: Strategy
16 Strategy Design and create ideal rental Homes and Communities using data and insights from AMH’s integrated development and operating platforms Less opportunity for alignment of interests between developer and operators Product Type & Location High-quality, detached, single family homes, with att
Slide 17: AMH Development Deliveries and Land Pipeline
(1) Rounded to the nearest thousand. 19 391 945 1,647 2,054 2,250 0 500 1,000 1,500 2,000 2,500 3,000 2016 2017 2018 2019 2020 2021 2022E AMH Development Deliveries 0 2,000 4,000 6,000 9,000 18,000 20,000+ 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2016 2017 2018 2019 2020 2
Slide 18: A Leader in ESG
A Leader in ESG 18 Walden Woods Community by AMH Development (Tampa, FL)
Slide 19: Recent ESG Recognitions
Recent ESG Recognitions Qe ESG REGIONAL TOP RATED Top ESG Regional Performer by Sustainalytics 2022 America’s Most Responsible Companies by Newsweek and Statista 2022 Great Place To Work’* tt AMERICAN omes
Slide 20: Environmental and Social Focus
Solar Implementation Piloted a renewable energy program through the installation of solar panels on two amenity centers, which we are monitoring to evaluate its potential expansion. Talent Development Rolled out new benefits including an Employee Stock Purchase Program, Tuition Reimbursement Program
Slide 21: Independent & Accountable Stewardship
21 Independent & Accountable Stewardship ▪ AMH is governed by a 13‐member board of trustees ▪ Independent Chairman of the Board ▪ Annual election of trustees ▪ Majority voting standard (plurality carve‐out voting standard only in contested elections) Continued Focus on Board Refreshment ▪ Continual
Slide 22: Appendix
Appendix
Slide 23: 2022 Guidance
23 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 financial measures to the comparable GAAP
Slide 24: Reconciliations: Core NOI
24 Defined Terms and Non-GAAP Reconciliations Dec 31, 2021 Dec 31, 2020 Net income 231,652$ 210,559$ 154,829$ Gain on sale and impairment of single-family properties and other, net (55,671) (49,696) (38,773) Depreciation and amortization 382,731 372,848 343,153 Acquisition and other transaction cost
Slide 25: Credit Ratios
25 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 estate companies. The tables below recon
Slide 26: Unencumbered Core NOI Percentage and Fixed Charge Coverage
26 Unencumbered Core NOI Percentage For the Trailing Twelve Months Ended Mar 31, 2022 Unencumbered Core NOI $ 511,189 Core NOI 746,064 Unencumbered Core NOI Percentage 68.5% Fixed Charge Coverage For the Trailing Twelve Months Ended Mar 31, 2022 Interest expense per income statement $ 114,455 Less:
Slide 27: EBITDA / EBITDAre / Adjusted EBITDAre
27 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 supplemental non-GAAP financial measure, which we
Slide 28: Funds from Operations / Core FFO
28 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 FFO as net income or loss calculated in ac
Slide 29: Reconciliation to Core FFO
29 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): Defined Terms and Non-GAAP Reconciliations Dec 31, 2021 De
Slide 30: Same-Home Property Definitions
30 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 or has been taken out of service as a re