American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — NAREIT Presentation November 2015
23 slides from American Homes 4 Rent's conference presentation, Nov 17, 2015
Slide 1: November 2015 NAREIT Presentation
November 2015 │ NAREIT Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information in this presentation has been prepared solely for informational purposes. “We,” “AMH,” “AH4R,” “the Company,” “the REIT,” “our” and “us” refer to American Homes 4 Rent, a Maryland real estate investment trust, and its subsidiaries taken as a whole. Various
Slide 3: American Homes 4 Rent (AMH) Highlights
Cash Flow • Objective for 2015 is to stabilize portfolio Platform • Company is fully internally managed – acquisition, administration and property management Scale • Company had 38,377 properties in 22 states, as of September 30, 2015 • Provides cost efficiencies and access to capital American Homes
Slide 4: SFR Industry Overview
SFR Industry Overview
Slide 5: Largest Income Producing Asset Class in the U.S.
Largest Income Producing Asset Class in the U.S. • 14.9 million single-family rental homes in the U.S.(1) • Historical “mom & pop” landlord model • Institutional ownership represents only ~1% of total single-family rental market Macro Factors Driving Rental Demand • Household formation continues to
Slide 6: Significant and Growing Demand for Rental Homes
Significant and Growing Demand for Rental Homes Household Formations Outpace New Housing Supply (1) Student Debt Constraining Ability to Buy (2) Homeownership Continues to Decline (3) Substantial Growth in Renter Household Demand (3) (1) Federal Reserve Bank of St. Louis Economic Data and U.S. Censu
Slide 7: Institutional SFR Overview
Institutional SFR Overview
Slide 8: Overview of Institutional SFR Landscape
Overview of Institutional SFR Landscape SFR sector is poised for consolidation as larger players benefit from cost of capital advantages and smaller investors face difficulty achieving scale Source: Public filings, company presentations and other publicly available information (1) Combined Colony St
Slide 9: Evolution of Public SFR REITs
$- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 SBY ARPI SWAY AMH Evolution of Public SFR REITs The Public SFR sector has evolved from the first IPO in late 2012 to four public players today, with a total enterprise value o
Slide 10: Benchmarking the Public REITs
Benchmarking the Public REITs Source: Public filings and other publicly available information. All data as of September 30, 2015 (1) AMH equity market cap includes 54,276,644 operating partnership units and 17,060,000 preferred shares (2) Combined Colony Starwood Homes pro forma data as of June 30,
Slide 11: AMH – Overview
AMH – Overview
Slide 12: Large, Diversified Portfolio
Large, Diversified Portfolio • 38,377 high quality homes as of September 30, 2015 • 92.8% total portfolio leased percentage as of September 30, 2015 • Properties in 22 states / 41 markets Scale • Largest public SFR REIT with strong reputation as industry consolidator • Well-developed national operat
Slide 13: Key Milestones Achieved to Date
Key Milestones Achieved to Date Operational Achievements Equity Capital Debt Capital Raises JV Capital Strategic M&A Activity • 38,377 homes • Fully-internalized in-market property management • Centralized leasing, customer service and maintenance call centers • Consistent in- house technology advan
Slide 14: National High Quality Portfolio in Attractive Markets
National High Quality Portfolio in Attractive Markets Investment Case – Selected Markets Dallas-Fort Worth • Strong net inbound migration • Robust job growth • Tremendous rental demand Indianapolis • Higher levels of distressed neighborhoods resulting in bigger discounts to replacement cost • Strong
Slide 15: Third Quarter 2015 Operational Update
Third Quarter 2015 Operational Update Quarterly Leasing, Core Revenues and Core NOI Increases Q3 2015 Overview • As of September 30, 2015: • Properties owned: 38,377 • Portfolio leased percentage: 92.8% • Portfolio occupancy percentage: 91.8% • Stabilized leased percentage: 95.4% • Stabilized occupa
Slide 16: Q3 2015 QTD Performance Highlights
Q3 2015 QTD Performance Highlights Same-Home Results Q3 2015 QTD Highlights • Core FFO of $49.3mm, or $0.19 per FFO share, a 28.3% increase compared to Q3 2014 QTD • NOI from initially leased properties of $87.2mm, a 46.6% increase over Q3 2014 QTD • Consistently strong Core NOI margin of 59% Source
Slide 17: AMH – Best in Class Operations
AMH – Best in Class Operations
Slide 18: Operational Life Cycle
Operational Life Cycle Acquisition & Conversion Renovation Leasing Property Management • Acquisition channels: • Auction • Broker / MLS • NPL • M&A / portfolio • Diversified footprint • 22 states / 41 markets • Growing population • Strong demographics • Dedicated team • All acquisitions underwritten
Slide 19: Marketing and Leasing – Stabilizing Occupancy & Optimizing Rents
- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Initial New Renewal Marketing and Leasing – Stabilizing Occupancy & Optimizing Rents Leasing Channels National Leasing Call Center – Provides Control & Scalability Tenant Underwriting Leasing Volume “Let Yourself In” Showings
Slide 20: Property Management – Centralized control, with local touch
Property Management – Centralized control, with local touch 19 District Offices 41 Markets Centralized Corporate Functions • Tenant screening / underwriting • Leasing call center • Customer service call center • Analytics / pricing Scalable internal property management platform with more than 500 pe
Slide 21: NOI and Core NOI Reconciliation
NOI and Core NOI Reconciliation 20 Initially Leased Property NOI is a supplemental non-GAAP financial measure that we define as rents and fees from single-family properties and tenant charge-backs, less property operating expenses for leased single-family properties. Initially Leased Property Core N
Slide 22: FFO and Core FFO Reconciliation
FFO and Core FFO Reconciliation 21 Sep 30, 2015 Sep 30, 2014 Sep 30, 2015 Sep 30, 2014 Net loss attributable to common shareholders (28,616)$ (21,747)$ (64,103)$ (47,673)$ Adjustments: Noncontrolling interests in the Operating Partnership 3,123 3,583 10,853 11,438 Depreciation and amortization of re
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