American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (November 2016)
21 slides from American Homes 4 Rent's investor presentation, Nov 14, 2016
Slide 1: Investor Highlights November 2016
Investor HighlightsNOVEMBER 2016
Slide 2: Legal Disclosures: Forward-Looking Statements
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: Strong Same-Home Operating Performance
3 (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 3Q15 – 2Q16 are based on a dif
Slide 4: Stable and Improving Same-Home Operating Metrics
4 STABLE AND IMPROVING SAME-HOME OPERATING METRICS SAME-HOME Y-O-Y CORE REVENUE GROWTH SAME-HOME PERCENTAGE LEASED COMBINED MAINTENANCE AND CAPEX PER PROPERTY (2) Y-O-Y SAME-HOME CORE NOI AFTER CAPEX GROWTH Attractive Same-Home Core NOI growth due to strong revenue increases, operational efficiencie
Slide 5: Strong Growth Profile Supported by Best-in-Class Efficiency
5 STRONG GROWTH PROFILE SUPPORTED BY BEST-IN-CLASS EFFICIENCY CORE FUNDS FROM OPERATIONS ADJUSTED FUNDS FROM OPERATIONS NET DEBT TO ADJUSTED EBITDA BEST-IN-CLASS MANAGEMENT PLATFORM EFFICIENCY $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 $0.21 $0.23 $0.25 $0.24 2
Slide 6: Large, Diversified Portfolio; Strong Balance Sheet; Access to Capital
6 Large, Diversified Portfolio (1) • 48,153 high-quality, well-located single-family properties in 22 states • Average age of properties of 13.5 years • Total leased percentage of 95.4% Strong Balance Sheet • Conservative approach to leverage • Total debt / Total market capitalization: 29.0%; Net de
Slide 7: AMH Business Strengths
7 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 8: Single-Family Industry Overview
8 Owner Occupied 63% / 74.5M units Apartments & Other Rentals 23% / 26.5M units TOTAL HOUSING STOCK 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 35 3
Slide 9: National High Quality Portfolio in Attractive Markets
9 NATIONAL HIGH QUALITY PORTFOLIO IN ATTRACTIVE MARKETS (1) As of Sept. 30, 2016. Percentage leased, average age and average sq. ft. per home exclude 1,238 held for sale single-family properties. (2) Based on number of properties as of Sept. 30, 2016. Dallas-Fort Worth, TX, 9.3% Atlanta, GA, 8.4% Ho
Slide 10: Opportunities: Portfolio Growth & Stabilization
10 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 p
Slide 11: Property Life Cycle
11 PROPERTY LIFE CYCLE • Acquisition channels: - Auction - Broker / MLS - NPL / Other - Bulk / Portfolio acquisition • Diversified footprint - 22 states - Growing demographics • Dedicated team - All acquisitions underwritten / executed by AMH personnel • Comprehensive inspection and renovation proce
Slide 12: Successful Marketing and Leasing Process
12 LEASE EXECUTION TENANT UNDERWRITING LEASING & MANAGEMENT (1) LEASING CHANNELS • Rental History • Credit History • Background Check • Average Income: o $85,000+ o ~5X Income / Rent National Call Center, Las Vegas, NV Designed to minimize potential tenant defaults • 44,746 leased properties as of S
Slide 13: Proactive Maintenance
13 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 14: Balance Sheet Strength & Flexibility
14 Stock Price Per Share as of 9/30/16 $21.64 Common Shares and Units 293.988 Value of Common Shares and Units $6,362 Preferred Shares (Liquidation Preference) 970 Total Equity Market Capitalization 7,332 Asset-backed Securitizations 2,498 Exchangeable Senior Notes 115 Secured Note Payable 50 Revolv
Slide 15: Appendix
15 APPENDIX
Slide 16: Portfolio Highlights by Market
16 (1) Excludes 1,238 held for sale single-family properties as of September 30, 2016. (2) Represents 22 markets in 16 states. Highlights(1) Market Gross Book Value ($mm) % of Gross Book Value Number of Single-Family Properties (1) % of Total Single-Family Properties Avg. Gross Book Value per Proper
Slide 17: Defined Terms and Non-GAAP Reconciliations: Core NOI
17 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 18: Non-GAAP Reconciliation: Net Loss to Core NOI
18 Sep 30, 2015 Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Net loss attributable to common shareholders $ (28,616) $ (20,474) $ (4,377) $ (10,404) $ (21,152) Dividends on preferred shares 5,569 5,569 5,569 7,412 13,669 Noncontroll ing interest 3,109 3,558 3,836 (761) 7,316 Net (loss) income
Slide 19: Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
19 Sep 30, 2015 Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Net loss attributable to common shareholders (28,616)$ (20,474)$ (4,377)$ (10,404)$ (21,152)$ Dividends on preferred shares 5,569 5,569 5,569 7,412 13,669 Noncontroll ing interest 3,109 3,558 3,836 (761) 7,316 Net (loss) income (19,
Slide 20: Defined Terms and Non-GAAP Reconciliations: FFO, Core FFO and Adjusted FFO
20 DEFINED TERMS AND NON-GAAP RECONCILIATIONS FFO, Core FFO and Adjusted FFO FFO attributable to common share and unit holders is a non-GAAP financial measure defined as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sa
Slide 21: Non-GAAP Reconciliation: FFO, Core FFO and AFFO
21 Sep 30, 2015 Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Net loss attributable to common shareholders (28,616)$ (20,474)$ (4,377)$ (10,404)$ (21,152)$ Adjustments: Noncontroll ing interests in the Operating Partnership 3,123 3,657 3,912 (616) 7,542 Net (gain) loss on sale / impairment of
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