American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2021)
28 slides from American Homes 4 Rent's investor presentation, Sep 20, 2021
Slide 1: Investor Presentation & Business Update September 2021
Investor Presentation & Business Update September 2021
Slide 2: Forward-Looking Statements
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 projections and es
Slide 3: AMH At A Glance
3 ➢ Largest Builder of Single-Family Homes For Rent with more than 2,000 Deliveries Expected in 2021(1) ➢ 14,000 Unit Land Pipeline to Fuel Further Acceleration(2) ➢ Highest-Quality Product and Superior Investment Returns ➢ Three-Pronged External Growth Strategy Drives Consistent Growth in all Cycle
Slide 4: AMH Today / The Market Opportunity / AMH Development / Governance
4 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 5: Same-Home Operational Update
5 Same-Home Operational Update Strong Demand Tailwinds Persist - Modest Seasonality Returning 95.5% 96.0% 97.9% 97.4% 94.0% 95.0% 96.0% 97.0% 98.0% 2Q July/August Same-Home Average Occupied Days 2020 2021 2.4% 2.1% 8.0% 9.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2Q July/August Average Blended Change in Ren
Slide 6: Full Year 2021 Guidance – Tracking to High-End
6 Full Year 2021 Guidance – Tracking to High-End Full Year 2021 Guidance(2) Range Midpoint Core FFO per share and unit $1.29 - $1.35 $1.32 Core FFO per share and unit growth 11.2% - 16.4% 13.8% Same-Home Portfolio: Core revenues growth 5.00% - 6.00% 5.50% Core property operating expenses growth 4.00
Slide 7: AMH vs. the Peer Set
7 AMH vs. the Peer Set (1) Source: S&P Global Market Intelligence. Total Return % YTD through September 10, 2021, with the inclusion of distributions. (2) Source: Company Disclosure (3) Source: John Burns Real Estate Consulting, LLC Full Year 2021 projected population growth rate. (4) Source: John B
Slide 8: AMH Development, National Builder Program, Traditional Channel
8 AMH Development National Builder Program Traditional Channel ❑ Network of relationships with national home builders provides acquisition access to new construction homes, which is a growth supplement to our AMH Development program ❑ Seasoned, in-market acquisition teams sharp-shoot existing invent
Slide 9: Investment Grade Balance Sheet
Unsecured Senior Notes Asset-backed Securitizations Revolving Credit Facility Liquidity - Outstanding Forward Shares Liquidity - Undrawn Revolving Credit Facility Liquidity - Cash and Cash Equivalents 9 Investment Grade Balance Sheet Capital Structure(1) Debt Maturity Schedule(1)(2) Balance Sheet Ph
Slide 10: AMH Today / The Market Opportunity / AMH Development / Governance
10 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 11: Millennials Enter Prime Single Family Living Years; Housing Shortage
11 Millennials Enter Prime Single Family Living YearsDecade of Undersupply = Massive Housing Shortage Changing Lifestyle Preferences → Increased Preference to Rent Recent HPA Growth Creates Long Runway for SFR Rent Growth (1.0%) (0.5%) 0.0% 0.5% 1.0% 1.5% 2.0% 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4
Slide 12: Migration Trends Favor AMH Footprint
Migration Trends Favor AMH Footprint 12 Sources: U.S. Census Bureau; AMH Research, John Burns Real Estate Consulting, LLC (Data: YoY Change from July 2019-July 2020) US Census Migration Data 2019 - 2020 Trends Existed Prior to the Pandemic and Continue to This Day ❑ Observable 2019 - 2020 trends of
Slide 13: AMH Today / The Market Opportunity / AMH Development / Governance
13 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 14: Strategy
14 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 High-quality, detached, single family homes, with fenced yards i
Slide 15: AMH Development: Desirable, Durable, Efficient
15 AMH Development Desirable ❑ Communities located in existing, high-performing AMH submarkets ❑ AMH communities blend seamlessly with other high-quality housing stock in surrounding submarket ❑ “Neighborhood feel” creates emotional attachment to home, community and amenities ❑ Designed for today’s
Slide 16: Built in Desirable Neighborhoods Within Current Market Footprint
16 Built in Desirable Neighborhoods Within Current Market Footprint Case Study: AMH Development Markets C h a rl o tt e L a s V e g a s B o ise A tl a n ta AMH Development Communities AH4R Properties
Slide 17: AMH Development Land Pipeline and Deliveries
211 2,046 4,203 6,377 8,954 14,000 0 3,000 6,000 9,000 12,000 15,000 2016 2017 2018 2019 2020 2021E AMH Development Land Pipeline Total Lots Owned and Controlled 0 19 391 945 1,647 2,050 3,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2016 2017 2018 2019 2020 2021E 2023E AMH Development Delive
Slide 18: AMH Today / The Market Opportunity / AMH Development / Governance
18 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 19: Environmental, Social and Governance
19 ❑ Operate responsibly ❑ Transparency in our actions ❑ Lead with Integrity Governance ❑ We are governed by a 13-member Board of Trustees, led by an Independent Chairperson. The board has ESG oversight through the Audit, Human Capital and Compensation, and Nominating and Corporate Governance commit
Slide 20: Corporate Governance Highlights
20 Corporate Governance Highlights 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 o
Slide 21: Appendix
Appendix 21
Slide 22: Defined Terms and Non-GAAP Reconciliations
22 Defined Terms and Non-GAAP Reconciliations 2021 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-GAA
Slide 23: Core Net Operating Income (Core NOI)
Core Net Operating Income ("Core NOI“) 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 core revenues, which is calculated as rents and other single-family property revenues, excluding
Slide 24: Credit Ratios
24 Defined Terms and Non-GAAP Reconciliations 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 re
Slide 25: Unencumbered Core NOI Percentage and Fixed Charge Coverage
25 Defined Terms and Non-GAAP Reconciliations Unencumbered Core NOI Percentage For the Trailing Twelve Months Ended Jun 30, 2021 Unencumbered Core NOI $ 455,136 Core NOI 675,096 Unencumbered Core NOI Percentage 67.4% Fixed Charge Coverage For the Trailing Twelve Months Ended Jun 30, 2021 Interest ex
Slide 26: EBITDA / EBITDAre / Adjusted EBITDAre
26 Defined Terms and Non-GAAP Reconciliations 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 supplem
Slide 27: Funds from Operations / Core FFO
27 Defined Terms and Non-GAAP Reconciliations 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
Slide 28: Same-Home Property and Stabilized Property Definitions
28 Defined Terms and Non-GAAP Reconciliations 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 sa
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