American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (June 2021)
34 slides from American Homes 4 Rent's investor presentation, June 2021
Slide 1: American Homes 4 Rent Investor Highlights June 2021
American Homes 4 Rent Investor Highlights June 2021
Slide 2: Legal Disclosures
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: AMH At A Glance
AMH At A Glance Peer-Leading Growth Industry Leading First-of-its-Kind Built- & Balance Sheet Operating Platform For-Rent Platform 2021 Guidance of 9.5% Core 53,984 high-quality properties Largest Builder of Single-Family FFO Growth at Midpoint in 22 states with ~ 200,000 Homes For Rent with m
Slide 4: AMH Recent Highlights & FY 2021 Guidance
AMH Recent Highlights & FY 2021 Guidance Record-high leasing trends and robust momentum continuing in 2Q21 • Leasing activity continues to accelerate into 2Q21 May 2021 Common Equity Offering QTD QTD YoY 1Q21 May-20 May-21 ∆ bps • Highly successful and oversubscribed common equity Record High offeri
Slide 5: AMH Today
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 5
Slide 6: AMH Strategic Priority: Grow, Grow, Grow
AMH Strategic Priority: Grow, Grow, Grow Three-Pronged Growth Strategy Positions AMH for Opportunistic Capital Allocation and Consistent Growth Throughout a Cycle AMH Development 4,050 4,000 Total Inventory Additions(1) • Early-mover advantage on built-for-rental strategy, which has 300 potential to
Slide 7: AMH Development - A Scalable and Differentiated Driver of Earnings Growth
AMH Development - A Scalable and Differentiated Driver of Earnings Growth 4,000 1Q16: A Pioneering In- House Built-to-Rent Development Program is 3,500 Conceived 3,000 + 3,000 3Q16: The First Land Lots are Purchased and the Team Begins to 2,500 Come Together 2,050 2,000 1,647 1,500 945 1,000 Guidanc
Slide 8: AMH Core FFO Bridge
AMH Core FFO Bridge $1.35 $1.30 $0.13 $0.01 Three-Pronged External Investment Approach Gaining in $0.01 Momentum, Driven by AMH Development $1.25 $1.27 Strong Execution and Robust Fundamentals Continue to Drive Strong Organic Growth $1.20 $0.07 $0.01 $0.01 $1.15 $1.16 $1.10 $1.11 $1.05 $1.00 Same-Ho
Slide 9: AMH vs. the Peer Set
AMH vs. the Peer Set 2020 – YTD 2021 Total Shareholder Return(1) YoY Population Growth Rates(3) AMH MAA CPT INVH UDR AVB ESS EQR AMH MAA INVH CPT UDR ESS EQR AVB 1.3% 1.3% 60.00% 50.00% 48.4% 1.0% 0.8% 40.00% 31.7% 30.00% 27.3% 27.1% 0.6% 20.00% 10.9% 10.00% 6.2% 6.1% 2.6% 0.0% 0.0% -0.1% 0.00% Marc
Slide 10: Investment Grade Balance Sheet to Drive Growth
Investment Grade Balance Sheet to Drive Growth Capital Structure(1) Debt Maturity Schedule(1)(2)(3) Pro forma Fixed Rate Debt liquidity(4) 17.7% $1,245 $1,250 Common Shares & OP Units $954 Floating Rate 76.3% $1,050 $870 Debt 0.5% $850 $650 $510 Preferred $410 Shares $450 5.5% $250 $90 $16 $21 $21 $
Slide 11: The Market Opportunity
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 11
Slide 12: Multi-Year Demand Tailwind and Record-Low Supply
Multi-Year Demand Tailwind and Record-Low Supply Millennials Likely to Enter Prime Single-Family Living Years Single-Family Propensity Increases with Parenthood / Age Projected Population Growth(1) Share of Single-Family Housing by Age Cohort(2) 2.0% 1.5% 74% 75% 76% 1.0% 69% 71% 0.5% 53% 0.0% 32% (
Slide 13: Ideal AMH Footprint: Migration Trends Existing Even Prior to Pandemic
Ideal AMH Footprint: Migration Trends Existing Even Prior to Pandemic US Census Migration Data 2018 - 2019 • Observable 2018 - 2019 trends of out-bound migration from coastal urban centers to higher quality of life markets • Trends continue into 2020 as the pandemic reinforced the advantages of subu
Slide 14: Differentiated Growth Strategy: AMH Development
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 14
Slide 15: AMH Development – Revolutionizing the Industry
AMH Development – Revolutionizing the Industry Data driven insights from AMH’s years of experience formulate blueprint for the optimal rental home – made possible by AMH’s unique full lifecycle development capabilities and management platform. The AMH Developed Home Desirable Durable Efficient • Exi
Slide 16: AMH Development in Highly Desirable Neighborhoods Within Current Footprint
AMH Development in Highly Desirable Neighborhoods Within Current Footprint Represents states in which we have active AMH Development markets Bolstering Existing Markets • Continued investment into existing AMH markets • On-the-ground operating intelligence enables land acquisition “sharp shooting” •
Slide 17: Building the Ideal Rental Home
Building the Ideal Rental Home First Floor Overview 1 Open Concept • Designed to current lifestyle preferences 2 First Floor Laundry • Facilitate easier washer/dryer move-in and move-out • Minimize potential washer leaks to first floor 3 2 or 3 Car Garage 1 • Ample storage space to appeal to residen
Slide 18: Building the Ideal Rental Home
Building the Ideal Rental Home Second Floor Overview 1 Wider Staircase • Facilitate easier move in / move out • Reduces potential nicks and scuffs on walls 2 HVAC in Conditioned Space 3 • Improves energy efficiency, extends system life, and easier access for maintenance and filter changes 2 3 Large
Slide 19: Exterior Home Features
Exterior Home Features Standardized Floor Plans – Multiple Exteriors TAMPA Provide construction efficiency CHARLESTON across the portfolio JACKSONVILLE ORLANDO 19
Slide 20: Pocket Office
Pocket Office Adaptable Design • AMH has control over full development lifecycle • Enables data driven decision execution such as incorporation of work from home pocket office 20
Slide 21: AMH Development Communities
AMH Development Communities Amenity Centers Create a Community Feel Additional Benefits • AMH leasing office • Lawn care • On-site and convenient access for better resident • Priced into monthly rent driving additional revenues experience • AMH control over pristine curb appeal • Club room & casual
Slide 22: AMH Development – Construction Sustainability
AMH Development – Construction Sustainability AMH Develops Homes That Are Environmentally Friendly Development & Construction Sustainability Aim to minimize our carbon footprint in our development: • We conserve natural resources and reduce waste while focusing on building new single-family homes th
Slide 23: Strong Governance Practices
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 23
Slide 24: Corporate Governance Highlights
Corporate Governance Highlights • AMH is governed by a 13‐member board of trustees Independent & Accountable • Independent Chairman of the Board Stewardship • Annual election of trustees • Majority voting standard (plurality carve‐out voting standard only in contested elections) • Continual process
Slide 25: ESG Principles That Guide Us
ESG Principles That Guide Us Sound environmental, social responsibility and corporate governance practices not only make good business sense, they uphold our obligation to employees, residents, communities and shareholders. Develop new homes and residential Contribute to the well-being of the Invest
Slide 26: Appendix
Appendix 26
Slide 27: Defined Terms and Non-GAAP Reconciliations
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-GAAP f
Slide 28: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of Core NOI to its respective GAAP metric (amounts in thousands): For the Trailing Twelve Months Ended Core NOI Mar 31, 2021 Net income $ 166,223 Gain on sale and impairment of single-family properties and other, net (48,52
Slide 29: Defined Terms and Non-GAAP Reconciliations
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 real
Slide 30: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Fixed Charge Coverage For the Trailing Twelve Months Ended Mar 31, 2021 Interest expense per income statement $ 115,328 Less: amortization of discounts, loan costs and cash flow hedge (7,411) Add: capitalized interest 21,225 Cash interest 129,142 Dividends
Slide 31: Defined Terms and Non-GAAP Reconciliations
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 supplement
Slide 32: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations FFO / Core FFO / Adjusted 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 in
Slide 33: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations 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): For the Three Mont
Slide 34: Defined Terms and Non-GAAP Reconciliations
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 sale
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