American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2024)
28 slides from American Homes 4 Rent's investor presentation, September 2024
Slide 1: Investor Highlights
Investor Highlights September 2024
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 Average Occupied Days Average Blended Change in Rent 98.0% 8.0% 7.5% 7.6% 97.0% 6.0% 97.0% 96.0% 96.3% 96.5% 5.4% 5.3% 96.1% 4.0% 95.0% 4.2% 4.2% 95.3% 95.2% 2.0% 94.0% 93.0% 0.0% Aug YTD Aug QTD Aug YTD Aug QTD (8 months) (2 months) (8 months) (2 months) '18 - '19 2023
Slide 5: Diversified Portfolio Footprint
Diversified Portfolio Footprint Positioned for Long-Term Sustainable Growth and Portfolio Optimization Flexibility Seattle, 1.7% Chicago, 2.6% Indianapolis, 4.8% Boise Salt Lake City, 3.3% Denver Columbus, 3.6% Cincinnati, 3.6% Las Vegas, 3.9% Nashville, 5.7% Raleigh, 3.7% Charlotte, 7.0% Phoenix, 5
Slide 6: SFR Macro Tailwinds
SFR Macro Tailwinds AMH Stone Creek Development Atlanta Market 6
Slide 7: Undersupplied Housing Landscape
Undersupplied Housing 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-
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% 22% 22% 20% 1.5% 10% 7% 1
Slide 9: AMH Today
AMH Today AMH Pine Landing Development Las Vegas Market 9
Slide 10: 2024 Guidance
2024 Guidance Full Year Midpoint. Core FFO per share and unit(1) $1.74 – $1.78 $1.76 Core FFO per share and unit growth 4.8% – 7.2% 6.0% Same-Home Portfolio: Core revenues growth 4.25% – 5.75% 5.00% Core property operating expenses growth 5.25% – 6.75% 6.00% Core NOI growth 3.50% – 5.50% 4.50% Prope
Slide 11: Investment Grade Balance Sheet
Investment Grade Balance Sheet High Quality Balance Sheet Creates Flexibility and Optionality Debt Maturity Schedule(2)(3) (MM) Preferred Shares, 1.1% $4,036 Common Shares & OP Units, 74.6% Liquidity(4) $20.8B Total $2,077 Capitalization(1) Fixed Rate $478 (5) $510 Debt, 24.3% $10 $10 $10 2024 2025
Slide 12: Differentiated Growth Strategy
Differentiated Growth Strategy AMH Cactus Cliff Development Las Vegas Market 12
Slide 13: 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 MLS and Portfolio Acquisitions • Internal development program provides National Bui
Slide 14: 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 15: AMH Development
AMH Development A Consistent Driver of Earnings Growth, Fueled by ~11,000 Unit Land Pipeline at Locked in Prices AMH Development Deliveries(1) AMH Development Land Pipeline(2) 3,000 Total Lots Owned and Optioned 16,000 14,000 2,500 14,000 2,300 2,300 13,000 13,000 2,200 2,100 12,000 2,000 11,000 10,
Slide 16: 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 17: Leaders in Sustainability
Leaders in Sustainability AMH Brentwood Development Charlotte Market 17
Slide 18: Sustainability Commitment
Sustainability 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 Committee are better for residents and the surveys conduct
Slide 19: Recent Recognitions
Recent Recognitions America’s Most Most Trustworthy Responsible Companies Companies in America 2024 2024 by Newsweek and Statista by Newsweek and Statista Best Workplaces in Great Place To Work® Real Estate 2024 by Great Place To Work Institute 2023 by Fortune Most Loved Workplace 2024 by Best Pract
Slide 20: 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 21: Appendix
Appendix
Slide 22: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations 2024 Guidance Set forth on slide 10 are the Company’s current expectations with respect to full year 2024 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 23: 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 24: 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 25: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Fixed Charge Coverage For the Trailing Twelve Months Ended Jun 30, 2024 Interest expense per income statement 146,727 Less: amortization of discounts, loan costs and cash flow hedges (12,131) Add: capitalized interest 55,764 Cash interest 190,360 Dividends
Slide 26: 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 27: 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 28: 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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