American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (May 2017)
53 slides from American Homes 4 Rent's investor presentation, May 23, 2017
Slide 1: Investor Highlights Management Presentation
Investor HighlightsMANAGEMENT PRESENTATION MAY 23, 2017
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: SFR Industry Overview: Operational Overview
SFR Industry Overview 3 OPERATIONAL OVERVIEW Cincinnati, OH
Slide 4: Where We Are
4 WHERE WE ARE (1) As of Mar 31, 2017. Percentage leased, average age and average sq. ft. per home exclude held for sale properties. • 48,336 homes • 22 states • 95.1% total leased • Average age of 14 years • Average size of 1,961 sf PORTFOLIO HIGHLIGHTS (1) BALANCED APPROACH
Slide 5: How We Got Here
HOW WE GOT HERE 4 } - DALLAS- MARKET / se 5 fiomes|Ea =
Slide 6: Property Management Platform
6 PROPERTY MANAGEMENT PLATFORM PROPERTIES PROCESSES PEOPLE
Slide 7: Why Is The Platform So Important?
7 Revenue Optimization Cost Control Enhanced Customer Experience Constant Improvement Scalability Why Is The Platform So Important? PROPERTY MANAGEMENT PLATFORM • 8,900 homes located in over 20 markets in 12 states • Seamlessly integrated into AMH’s system within 30 days • Dramatically improved marg
Slide 8: PM Operations
AMH Highlights Section 8 PM OPERATIONS Dallas‐Fort Worth, TX
Slide 9: Centralized Support, Local Touch
9 CENTRALIZED SUPPORT, LOCAL TOUCH SUPPORT • Control – Underwriting, pricing, lease administration • Efficiency – Ability to operate 7 days a week, 15 hours a day • Consistency – AH4R University • Innovation – Data driven
Slide 10: Centralized Support, Local Touch
10 Operational Support • Training • Accounting • Maintenance • Call centers • Lease administration Boots on The Ground • Property inspections • Personal tenant interactions CENTRALIZED SUPPORT, LOCAL TOUCH Managerial Oversight • Local district office • District & field managers Salt Lake City Distri
Slide 11: Centralized Support, Local Touch: Local Touch
11 CENTRALIZED SUPPORT, LOCAL TOUCH LOCAL TOUCH • Superior Customer Service • Tenant retention • Positive tenant behavior DISTRICT MANAGER LEASING TEAM PROPERTY MANAGEMENT TEAM FIELD TEAM • Eyes on the Assets • 125,000 inspections yearly • Manage Costs • Ensure quality
Slide 12: Centralized Support, Local Touch: Key Initiatives
12 CENTRALIZED SUPPORT, LOCAL TOUCH FOCUS • Customer Service • Personal touch • Convenience • Our People • Intentional about culture • Minimizing Vacancy Period • Preservation of Asset Customer Service • Seamless Communication • Training • Turn Revolution • Tenant • Property Management • Vendors: Pr
Slide 13: Best in Class Systems
13 BEST IN CLASS SYSTEMS West Division Pricing Marketing Tenant Underwriting LeasingMove‐In PM & Maintenance Renewal / Move‐Out Turn Data & Feedback
Slide 14: Best in Class Systems – Pricing Tool
14 • Estimates demand at different price points • Current demand in trade area • Monitor demand during current marketing period REVENUE OPTIMIZATION BEST IN CLASS SYSTEMS – PRICING TOOL
Slide 15: Asset Level Pricing
15 • Visualization of internal and 3rd party inventory • Identify property fundamentals • Surrounding school data ASSET LEVEL PRICING BEST IN CLASS SYSTEMS – PRICING TOOL
Slide 16: Best in Class Systems – Inspection Tool
16 OBJECTIVES • Manage costs • Reduce down time • Improve efficiencies BEST IN CLASS SYSTEMS – INSPECTION TOOL
Slide 17: Primo: Manage Costs
17 PRIMO MANAGE COSTS • Line item visibility & review • Drive tenant behavior • Vendor accountability BEST IN CLASS SYSTEMS – INSPECTION TOOL
Slide 18: Primo: Speed Through Integration
18 PRIMO Speed Through Integration Website Accounting Work Flow Management BEST IN CLASS SYSTEMS – INSPECTION TOOL
Slide 19: Efficiencies – Inspection Tool
19 EFFICIENCIES • Scheduling & workflow management • Reduce administrative time • Guided task and inspection script BEST IN CLASS SYSTEMS – INSPECTION TOOL
Slide 20: Marketing & Leasing
SFR Industry Overview 20 MARKETING & LEASING Jacksonville, FL
Slide 21: Eliminating the Traditional SFR Leasing Model Bottlenecks
21 ELIMINATING THE TRADITIONAL SFR LEASING MODEL BOTTLENECKS 1. Yard Sign 2. Contact Agent or Leave Message 3. Schedule Showing or Call 4. Agent Shows Home 5. Complete Application at Leasing Office 6. Conduct Rental Underwriting 7. Approved Tenant 8. Tenant Move‐In Access Execution Best Case: 8 – 14
Slide 22: Property Information Awareness
22 PROPERTY INFORMATION AWARENESS ONLINE SEARCH NEIGHBORHOOD SEARCH MLS NURTURE CAMPAIGNS • Zillow • Realtor.com • Rentals.com • Trulia • Yard sign • Referrals • Nurture campaigns to previous shoppers
Slide 23: Property Information
PROPERTY INFORMATION FLCMSS|ED meowceei | renee | ree anmee q fiomes|E
Slide 24: Digital Traffic
24 DIGITAL TRAFFIC 1.1 2.5 9.6 1.5 3.8 17.2 1.9 4.9 22.9 0 5 10 15 20 25 Unique Users Sessions Pageviews 2014 2015 2016 WEBSITE TRAFFIC (millions) 56.6% of page views in 2016 occurred on mobile devices
Slide 25: Property Access
PROPERTY ACCESS 6540 The Masters Avenue Lakewood Ranch, FL 34202 Beds | Baths | SqFt | Built 4 3 3704 | 1999 This 3,704 square foot single family home 3 bathrooms. itis Jasters Avenue. Leases APN] Lot Yourself Let Us Show You View Rental Criteria © Asso Fa > | Amentesareewres | Neighborhood Schools
Slide 26: Property Access Contact Center
26 PROPERTY ACCESS CONTACT CENTER • Sales Development teams are highly accessible to handle inquiries regarding our properties, 7 days a week, 15 hours a day. • Identify needs, present product, qualify, create showings. • Handled 720,000 inbound sales calls in 2016. Over 300,000 Check Ins in 2016
Slide 27: Property Access: High Volume of Showings
27 Platform structured to permit high volume of showings PROPERTY ACCESS
Slide 28: Lease Execution
28 Over 20,000 new leases executed in 2016 LEASE EXECUTION • Field Leasing • Underwriting • Lease writing 7 day a week operation
Slide 29: Lease Execution: Visibility and Transparency
29 Platform structured to provide visibility and transparency to leasing activity LEASE EXECUTION
Slide 30: Home Maintenance
SFR Industry Overview 30 HOME MAINTENANCE Houston, TX
Slide 31: Maintenance Objectives
31 MAINTENANCE OBJECTIVES Property Preservation Customer Service Cost Control $
Slide 32: Maintenance Process & Challenge
32 MAINTENANCE PROCESS & CHALLENGE Vendor PM Office In‐House Services TENANT Systems Maintenance
Slide 33: Maintenance Process
33 Intake Diagnosis Resolution MAINTENANCE PROCESS
Slide 34: Maintenance Process – Intake
34 MAINTENANCE PROCESS - INTAKE I n t a k e Online PM Office Call Center
Slide 35: Maintenance Process – Diagnosis: Garage Door
35 GARAGE DOOR • 4 Basic problems • 48 Unique diagnoses • 39 Discoveries • 83 Responses MAINTENANCE PROCESS - DIAGNOSIS
Slide 36: Maintenance Process – Diagnosis: Asset Catalog
36 Asset Catalog Appliances HVAC Water Heaters MAINTENANCE PROCESS - DIAGNOSIS
Slide 37: Maintenance Process – Diagnosis: Trade Specialist
37 HVAC Supervisor Coordinator Coordinator TRADE SPECIALIST Coordinator MAINTENANCE PROCESS - DIAGNOSIS
Slide 38: Maintenance Process – Resolution
38 Resolution Self‐service In‐House Services External Vendor MAINTENANCE PROCESS - RESOLUTION Misaligned Sensors Replace Sensors Garage Door Spring
Slide 39: PRIME Maintenance Management
39 PRIME Maintenance Management MAINTENANCE PROCESS - RESOLUTION
Slide 40: Communication
40 COMMUNICATION WEB Vendor PM Office TENANT Systems Maintenance In‐House Services
Slide 41: An Integrated Solution
41 Vendor PM Office In‐House Services PRIME Tenant Maintenance AN INTEGRATED SOLUTION
Slide 42: In-House Services
SFR Industry Overview 42 IN‐HOUSE SERVICES Houston, TX
Slide 43: In-House Services Program Overview
43 IN-HOUSE SERVICES PROGRAM OBJECTIVE • Reduces costs • Increase customer satisfaction • Property preservation • 70 technicians & vehicles • Cover 90% of our portfolio • More work orders than top 10 vendors combined (YTD 2017) PROGRAM OVERVIEW
Slide 44: Work Order & Drive Time
44 WORK ORDER & DRIVE TIME State of the art proprietary systems optimize productivity “Scheduling Assistant” optimizes drives to reduce windshield time
Slide 45: Work Order Volume
45 WORK ORDER VOLUME State of the art proprietary systems optimize productivity Real‐time management tools monitor activities
Slide 46: First Trip Completions
46 FIRST TRIP COMPLETIONS System monitors status of follow‐up jobs State of the art proprietary systems optimize productivity
Slide 47: Automated Customer Service Surveys
47 AUTOMATED CUSTOMER SERVICE SURVEYS Surveys ensure job and customer satisfaction State of the art proprietary systems optimize productivity
Slide 48: Vehicle Location Tracking
48 VEHICLE LOCATION TRACKING Systems provide management tools State of the art proprietary systems optimize productivity
Slide 49: Financial Review
AMH Highlights Section 49 Houston, TXFINANCIAL REVIEW
Slide 50: Best-in-Class Platform = Industry Leading Metrics
50 BEST-IN-CLASS PLATFORM = INDUSTRY LEADING METRICS AMH 1Q17 SFR Peers (1) (Dollars in thousands) 1Q16 2Q16 3Q16 4Q16 1Q17 Range Adjusted EBITDA Margins Total revenues, excluding tenant charge‐backs $ 173,943 $ 200,061 $ 205,249 $ 204,382 $ 205,381 Property operating expenses, net ( 49,048) ( 58,73
Slide 51: Appendix
AMH Highlights Section 51 Las Vegas, NVAPPENDIX
Slide 52: Adjusted EBITDA Reconciliation
52 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016 Mar 31, 2017 Net (loss) income attributable to common shareholders (4,377)$ (10,404)$ (21,152)$ 2,391$ (1,490)$ Dividends on preferred shares 5,569 7,412 13,669 13,587 13,587 Noncontroll ing interest 3,836 (761) 7,316 (6,640) (301) Net income (l
Slide 53: Defined Terms and Non-GAAP Reconciliations
53 DEFINED TERMS AND NON-GAAP RECONCILIATIONS Platform Efficiency Percentage Platform Efficiency Percentage is calculated by dividing management costs, which include (1) property management expenses, net of tenant charge-backs and excluding noncash share-based compensation expense, (2) general and a
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