American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (November 2023)
30 slides from American Homes 4 Rent's investor presentation, November 2023
Slide 1: Investor Highlights
Investor Highlights November 2023
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 relate t
Slide 3: AMH At A Glance
AMH At A Glance Continued Runway of Prudent & Consistent Investment Grade Resilient Single-Family Growth From Balance Sheet Rental Fundamentals AMH Development ➢ Favorable Supply Landscape and ➢ Largest Integrated Single-Family ➢ High-Quality Investment Grade Sustainable Demand Tailwinds Rental Buil
Slide 4: Same-Home Operational Update
Same-Home Operational Update Seasonality Returning as Expected While Metrics Remain Above Historical Averages Average Occupied Days Average Blended Change in Rent 98.0% 10.0% 9.5% 97.0% 8.0% 97.1% 8.5% 96.9% 96.0% 96.4% 6.0% 7.2% 96.2% 5.8% 95.0% 4.0% 95.2% 4.0% 94.8% 3.4% 94.0% 2.0% 93.0% 0.0% 3Q O
Slide 5: Diversified Portfolio Footprint
Diversified Portfolio Footprint Positioned for Long-Term Sustainable Growth and Portfolio Optimization Flexibility Seattle, 2.0% Chicago, 2.7% Indianapolis, 4.9% Boise Salt Lake City, 3.3% Denver Columbus, 3.7% Cincinnati, 3.6% Las Vegas, 3.6% Nashville, 5.6% Raleigh, 3.7% Charlotte, 6.9% Phoenix, 5
Slide 6: SFR Macro Tailwinds
SFR Macro Tailwinds AMH Mojave Hills Development Las Vegas Market 6
Slide 7: Favorable Supply Landscape
Favorable Supply Landscape Historically Low Existing Home Inventories Expected New Construction Levels Likely not Enough to Have Led to Supply Constraints Solve the Country’s Housing Shortage TTM Avg. National Existing Home Inventory(1) (MM) 2.0 Single-Family Permits(2) (MM) 3.3 1.6 2.8 Single-Famil
Slide 8: Sustained Demand Tailwinds
Sustained Demand Tailwinds SFR Value Proposition Further Benefitted By Millennials are Aging into Prime Single Family Living Years Increased Cost of Ownership Est. Single Family Rents vs. Cost of Home Ownership(1) Projected Population Growth(2) (Top 20 AMH Markets) 30% 2.0% 21% 21% 20% 1.5% 9% 10% 7
Slide 9: AMH Today
AMH Today AMH Hammock Oaks Development Jacksonville Market 9
Slide 10: Recently Increased 2023 Guidance
Recently Increased 2023 Guidance Full Year Midpoint. Core FFO per share and unit(1) $1.64 – $1.66 $1.65 Core FFO per share and unit growth 6.5% – 7.8% 7.10% Same-Home Portfolio: Core revenues growth 6.00% – 7.00% 6.50% Core property operating expenses growth 9.00% – 10.00% 9.50% Core NOI growth 4.40
Slide 11: Investment Grade Balance Sheet
Investment Grade Balance Sheet High Quality Balance Sheet Creates Flexibility and Optionality Debt Maturity Schedule(2)(3) (MM) $3,448 Preferred Shares, 1.2% Common Shares & OP Units, 75.0% Liquidity(4) $18.6B Total $1,320 Capitalization(1) $950 Fixed Rate $5 $10 $10 $10 Debt, 23.8% 2023 2024 2025 2
Slide 12: AMH vs. the Peer Set
AMH vs. the Peer Set 3-Year Core FFO Growth CAGR(1) 3-Year Total Return(2) (Midpoint of Guidance) 12.5% 12.4% 26.4% 11.6% 11.4% 20.9% 18.6% 18.1% 6.9% 6.6% 5.4% 5.1% 8.6% 7.7% 3.4% 0.7% AMH MAA CPT INVH AVB UDR ESS EQR AVB AMH INVH EQR MAA UDR ESS CPT Est. 2024 YoY Population Growth(3) Est. 2024 YoY
Slide 13: Differentiated Growth Strategy
Differentiated Growth Strategy AMH Hammock Oaks Development Jacksonville Market 13
Slide 14: Three-Pronged Growth Strategy
Three-Pronged Growth Strategy Consistent Growth from AMH Development Complemented by Nimble and Opportunistic Acquisition Channels That Can be “Dialed Up or Down” Based on Market Conditions SM AMH Development Program Traditional MLS Acquisitions • Internal development program provides National Build
Slide 15: AMH Development: Not All BTR is the Same
AMH Development: Not All BTR is the Same Building the Ideal Rental Home Through the Lens of our Best-In-Class Operating Platform Other BTR Product Design and create ideal rental Homes and Communities using Less opportunity for alignment of Strategy data and insights from AMH’s integrated developme
Slide 16: AMH Development
AMH Development A Consistent Driver of Earnings Growth, Fueled by 13,000+ Unit Land Pipeline at Locked in Prices AMH Development Deliveries AMH Development Land Pipeline(1) 3,000 Total Lots Owned and Optioned 16,000 14,000 2,500 14,000 2,300 13,000 13,000 + 2,183 2,054 12,000 2,000 1,647 10,000 9,00
Slide 17: Enhanced by Resident 360
SFR Owner, Operator, & Developer Internal Development Program Integrated with AMH Operating Platform Provides Unique Ability to Optimize Portfolio and Platform through Continuous Data Feedback Loops Technology Driven Operating Platform Integrated AMH Development Program Innovative technology systems
Slide 18: Leaders in ESG
Leaders in ESG AMH Walden Woods Development Tampa Market 18
Slide 19: ESG Commitment
ESG Commitment Providing Quality, Sustainable Housing that Our Residents Desire Building for the Future Fostering Strong Communities Leading with Integrity Efficient, durable homes that • Ongoing resident satisfaction • Management ESG are better for residents and the surveys conducted by Committee p
Slide 20: Recent ESG Recognitions
Recent ESG Recognitions America’s Most America’s Most Responsible Companies Trustworthy Companies 2023 & 2022 2023 & 2022 by Newsweek and Statista by Newsweek and Statista Best Workplaces in Great Place To Work® Real Estate 2023 & 2022 by Great Place To Work Institute 2023 & 2022 TM by Fortune Top E
Slide 21: Corporate Governance Highlights
Corporate Governance Highlights ▪ 83% Independent trustees Independent & ▪ Annual election of trustees Accountable ▪ Majority voting standard (plurality carve‐out voting standard only in contested elections) Stewardship ▪ Annual Board self-evaluation process ▪ Regular shareholder engagement with tru
Slide 22: Appendix
Appendix
Slide 23: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations 2023 Guidance Set forth on slide 10 are the Company’s current expectations with respect to full year 2023 Core FFO attributable to common share and unit holders and our underlying assumptions. In reliance on the exception provided by applicable SEC rules, t
Slide 24: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations 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
Slide 25: 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 26: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Fixed Charge Coverage For the Trailing Twelve Months Ended Sep 30, 2023 Interest expense per income statement $ 141,356 Less: amortization of discounts, loan costs and cash flow hedges (12,278) Add: capitalized interest 53,661 Cash interest 182,739 Dividend
Slide 27: 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 28: Defined Terms and Non-GAAP Reconciliations
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 FF
Slide 29: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of these metrics to 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): F
Slide 30: Defined Terms and Non-GAAP Reconciliations
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. Same-Home Property A property is classified as Same-Home if i
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