American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2019)
25 slides from American Homes 4 Rent's investor presentation, Sep 9, 2019
Slide 1: Investor Highlights September 2019
Investor Highlights September 2019
Slide 2: Legal Disclosures: Forward-Looking Statements
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 p
Slide 3: Table of Contents
Table of Contents ➢ AMH At A Glance 4 ➢ Operational Update 5 ➢ Macro Landscape Drives Strong Demand 6 ➢ Cornerstones of the AMH Strategy 7 ➢ AMH Development 8-10 ➢ Investment Grade Balance Sheet 11 ➢ Financial Results 12-13 ➢ 2019 Guidance 14 ➢ Defined Terms and Non-GAAP Reconciliations 15-25 3
Slide 4: AMH At A Glance
AMH At A Glance 52,634 high-quality Only Investment 2.6% Same Home Approx. $250 million properties in 22 Grade Rated 2Q19 Core NOI of retained annual states(1) balance sheet in after Capex cash flow(2) ~ 200,000 residents SFR sector growth(1) ~1,200 employees, 96.3% Same-Home of which over 800 2Q19
Slide 5: Operational Update
Operational Update • Robust demand for our homes, with Same-Home 2Q19 Average Occupied Days Percentage of 95.7%, Strong a 40 basis point increase over 2Q18 Occupancy Levels • Leasing activity remains seasonally strong into late summer with Same-Home QTD August-2019 Average Occupied Days Percentage o
Slide 6: Macro Landscape Drives Strong Demand
Macro Landscape Drives Strong Demand (1) Fundamental Shifts Support Single-Family Rental Demand Strong AMH Profile • Over 660,000 inbound sales calls to Las Vegas Leasing Call Center in 2018 • Approximately 29.5 million AMH website page views in 2018 with over 50% coming from mobile users • 20% year
Slide 7: Cornerstones of the AMH Strategy
Cornerstones of the AMH Strategy • Optimize AMH’s differentiated operating platform, with focus on consistent execution Operational • Balance centralized control and oversight, with local office touch Optimization • Enhance operating efficiencies with innovative and proprietary technology solutions
Slide 8: AMH Development – Revolutionizing the Industry
AMH Development – Revolutionizing the Industry Data driven insights from AMH’s years of experience formulate blueprint for the “perfect” rental home – made possible by AMH’s unique full lifecycle development capabilities and management platform. The AMH Developed Home Desirable Durable Efficient •Ex
Slide 9: AMH Development – Revolutionizing the Industry
AMH Development – Revolutionizing the Industry Premium Return •Construction costs = significant discount to market retail value •Rental rate premium on higher quality home & finishes •More efficient expenditure profile Attractive Risk Profile •No AMH risk to pre-entitlement land •Zero “homebuilder l
Slide 10: AMH Development – Case Study (Steele Forest)
AMH Development – Case Study (Steele Forest) Community Highlights • Steele Forest Community located in Atlanta, GA • 64 total units: • 2,200 average square feet • Average 4 bed / 2.5 bath • Total project cost $13.7 million • Construction costs within 2.5% of budget • 6.0% average unit economic yield
Slide 11: Investment Grade Balance Sheet
Investment Grade Balance Sheet Capital Structure (1) Debt Maturity Schedule (2) (4) $1,291 Fixed Rate Debt 23.3% (In millions)) Common Shares $956 & OP Units $919 69.5% Floating Rate $510 Debt 0.0% Preferred Shares 7.2% $10 $21 $21 $21 $21 $10 $10 $10 Current Liquidity (3) Revolving credit facility
Slide 12: Strong Same-Home Performance
Strong Same-Home Performance (Amounts in thousands, except property data) 2Q18 3Q18 4Q18 1Q19 2Q19 Number of Same-Home properties 40,618 40,618 40,618 40,618 40,618 Rents from single-family properties $ 181,334 $ 183,004 $183,777 $ 186,194 $ 188,881 Operating Highlights Fees from single-family prope
Slide 13: Industry Leading Efficiency Metrics
Industry Leading Efficiency Metrics (Dollars in thousands) 2Q18 3Q18 4Q18 1Q19 2Q19 Adjusted EBITDAre Margins Total revenues, excluding tenant charge-backs $ 229,950 $ 233,151 $ 234,032 $ 239,806 $ 247,304 Property operating expenses, net (65,515) (68,009) (64,612) (68,094) (70,518) Property managem
Slide 14: 2019 Guidance
2019 Guidance Guidance Summary Full Year 2019 Core FFO attributable to common share and unit holders $1.06 - $1.14 Same-Home Core revenues growth 3.2% - 4.2% Core property operating expenses growth 3.5% - 4.5% Core NOI growth 3.0% - 4.0% Core NOI After Capital Expenditures growth 2.6% - 3.6% Reconci
Slide 15: Defined Terms: Average Occupied Days Percentage, Core NOI
Defined Terms and Non-GAAP Reconciliations Average Occupied Days Percentage The number of days a property is occupied in the period divided by the total number of days the property is owned during the same period. This calculation excludes properties classified as held for sale. Core Net Operating I
Slide 16: Reconciliations of Core Revenues, Core Expenses and Core NOI
Defined Terms and Non-GAAP Reconciliations The following are reconciliations of core revenues, Same-Home core revenues, core property operating expenses, Same-Home core operating expenses, Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures to their respective GAAP metrics
Slide 17: Net Income to Core NOI Reconciliation
Defined Terms and Non-GAAP Reconciliations Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, 2018 2018 2018 2019 2019 Net income $ 25,898 $ 30,281 $ 34,734 $ 33,091 $ 40,304 Loss on early extinguishment of debt 1,447 - - - 659 Gain on sale of single-family properties and other, net (3,240) (4,953) (7,497) (5,
Slide 18: Credit Metrics
Defined Terms and Non-GAAP Reconciliations Credit Metrics We present the following selected metrics because we believe they are helpful as supplemental measures in assessing our ability to service our financing obligations and in evaluating balance sheet leverage against that of other real estate co
Slide 19: Net Debt to Adjusted EBITDAre
Defined Terms and Non-GAAP Reconciliations Net Debt to Adjusted EBITDAre June 30, 2019 Total Debt $ 2,881,774 Less: cash and cash equivalents (119,176) Less: asset-backed securitization certificates (25,666) Less: restricted cash related to securitizations (49,032) Net Debt $ 2,687,900 Adjusted EBIT
Slide 20: EBITDA / EBITDAre / Adjusted EBITDAre Definitions
Defined Terms and Non-GAAP Reconciliations EBITDA / EBITDAre / Adjusted EBITDAre / Adjusted EBITDAre after Capex and Leasing Costs / Adjusted EBITDAre Margin / Adjusted EBITDAre after Capex and Leasing Costs Margin EBITDA is defined as earnings before interest, taxes, depreciation and amortization.
Slide 21: Net Income to EBITDA and Adjusted EBITDAre Reconciliation
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of net income, determined in accordance with GAAP, to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted EBITDAre after Capex and Leasing Costs, Adjusted EBITDAre Margin and Adjusted EBITDAre after Capex and Leasing Costs Margin
Slide 22: FFO / Core FFO / Adjusted FFO
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 23: Platform Efficiency Percentage
Defined Terms and Non-GAAP Reconciliations Platform Efficiency Percentage Management costs, including (1) property management expenses, net of tenant charge-backs and excluding noncash share-based compensation expense, (2) general and administrative expense, excluding noncash share-based compensatio
Slide 24: Property Enhancing Capex and Recurring Capital Expenditures
Defined Terms and Non-GAAP Reconciliations Property Enhancing Capex Includes elective capital expenditures to enhance the operating profile of a property, such as investments to increase future revenues or reduce maintenance expenditures. Recurring Capital Expenditures For our Same-Home portfolio, r
Slide 25: Retained Annual Cash Flow
Defined Terms and Non-GAAP Reconciliations Retained Annual Cash Flow Retained Annual Cash Flow is a non-GAAP financial measure that we believe is helpful as a supplemental measure in assessing the Company’s liquidity. We compute this metric by reducing Adjusted FFO by common distributions. The follo
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