American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2020)
32 slides from American Homes 4 Rent's investor presentation, Sep 14, 2020
Slide 1: Investor Highlights September 2020
Investor Highlights September 2020
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: AMH Today; The Market Opportunity; Strategy; Governance
AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices 3
Slide 4: AMH Today – COVID-19 Resiliency & Outperformance
AMH Today – COVID-19 Resiliency & Outperformance Record Leasing Results Collections Remain Resilient AMH proprietary mobile leasing technology is enabling capture of Sep-20 (MTD) collections approaching pre-pandemic levels robust demand → translating into record high occupancy Same-Home Average Occu
Slide 5: AMH Today – Best-in-Class Operational Efficiency
AMH Today – Best-in-Class Operational Efficiency AMH’s best-in-class operating platform produces industry leading efficiencies & is a long-term operating advantage AMH Fully Adjusted EBITDAre ($ in 000’s) – TTM 2Q20 Drivers of the AMH Operating Platform Advantage Core revenues $ 982,522 AMH Propriet
Slide 6: AMH Today – Positioned for Outsized Growth
AMH Today – Positioned for Outsized Growth AMH balance sheet & investment grade rating Three-pronged growth strategy positions AMH for key differentiator for growth and resiliency consistent external growth throughout all economic cycles Balance Sheet Strength The AMH Three-Pronged Growth Strategy •
Slide 7: AMH – Outperforming the Peer Set
AMH – Outperforming the Peer Set YTD 2020 Total Shareholder Return(1) 2018 – YTD 2020 Total Shareholder Return(2) AMH INVH MAA CPT UDR AVB ESS AIV EQR AMH MAA INVH CPT UDR ESS EQR AVB AIV 12.1% 37.5% 28.9% 27.9% -2.0% -7.9% 7.5% -12.3% -1.6% -3.0% -4.5% -23.8% -24.9% -26.3% -6.4% -27.4% -28.6% -9.4%
Slide 8: The Market Opportunity
AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices 8
Slide 9: Macro Landscape Drives Strong Long-term Demand
Macro Landscape Drives Strong Long-term Demand Macro long-term demand metrics remain intact with potential for further strengthening due to COVID-19 environment as household preferences shift towards suburban, detached single-family homes Fundamental Shifts Support Single-Family Rental Demand(1) Str
Slide 10: Home Inventory Remains Below Historical Averages
Home Inventory Remains Below Historical Averages Continued Strong Demand for Housing from 10+ Years of Housing Undersupply Relative to Household Formations Resale inventory fell 19% YoY to 1.5 million units in Jun-20 and remains below the historical average ---- Historical average(2) Resale Inventor
Slide 11: AMH's Strategy to Drive Shareholder Value
AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices 11
Slide 12: AMH Has a Well-Defined Plan to Drive Shareholder Value
AMH Has a Well-Defined Plan to Drive Shareholder Value 1 • Continuous operational optimization expected to create long-term margin expansion profile Operational • Balance centralized control and oversight, with local office touch Optimization / Efficiencies • Enhance operating efficiencies with inno
Slide 13: Houston Case Study: Property Enhancing Capex
Houston Case Study 1 Operational Optimization – Property Enhancing Capex Property Enhancing Capex Case Study ROI (Average per home) Tremendous opportunity to optimize our existing properties Property Enhancing Capex $ 10,700 • Strong returns on incremental investment Annual rent premium ($155/mo) (1
Slide 14: AMH Development – Revolutionizing the Industry
2 AMH Development – Revolutionizing the Industry Data driven insights from AMH’s years of experience formulate blueprint for the optimal rental home – made possible by AMH’s unique full lifecycle development capabilities and management platform. The AMH Developed Home Desirable Durable Efficient • E
Slide 15: AMH Development – Premium Return & Margin Enhancement
2 AMH Development – Revolutionizing the Industry Premium Return & Margin Enhancement •Construction costs = significant discount to market retail value •Rental rate premium on higher quality home & finishes •More efficient expenditure profile Attractive Risk Profile •Zero “homebuilder like” sales pro
Slide 16: AMH Development – Case Study (Hoke O'Kelly)
2 AMH Development – Case Study (Hoke O’Kelly) Community Highlights Relative Demographic Trends • Hoke O’Kelly Community located in Atlanta • Average household income greater than broader (Loganville), GA Atlanta market and total AMH portfolio averages • 53 total units: • 2,250 average square feet •
Slide 17: AMH Development – Construction Sustainability
2 AMH Development – Construction Sustainability AMH Develops Homes That Are Environmentally Friendly Development & Construction Sustainability Aim to minimize our carbon footprint in our development: • We conserve natural resources and reduce waste while focusing on building new single-family homes
Slide 18: AMH Today – Investment Grade Balance Sheet
3 AMH – Today – Investment Grade Balance Sheet Growth Pro Forma Capital Structure(1) Pro Forma Debt Maturity Schedule(1)(2)(3) Liquidity(4) Fixed Rate Debt 21.6% $1.1bn $955 $881 Common Shares & OP Units 71.7% $510 $410 Preferred Shares 6.7% $10 $21 $21 $21 $10 $10 $10 Principal Amortization Unsecur
Slide 19: Leveraging Technology to Enhance our Platform
Leveraging Technology to 4 Superior Customer Service – Enhance our Platform Resident Experience Technology Warm and Welcoming Renting a Home Just Got Easier Resident satisfaction is the key to consistent results and is Our best-in-class contact center and proprietary technology paramount to our long
Slide 20: AMH Strong Governance Practices
AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices 20
Slide 21: Corporate Governance Highlights
Corporate Governance Highlights • AMH is governed by a 13‐member board of trustees, 9 of whom are independent directors Independent & Accountable • Independent Chairman of the Board Stewardship • Annual election of directors • Majority voting standard (plurality carve‐out voting standard only in con
Slide 22: AMH Trustee Overview
AMH Trustee Overview Photo Name Years on Board Age Primary Occupation Key Skills & Public Board Experience(1) Independent Independent Chairman of the Board • Diversified business investor with public of AMH Ken Woolley 8 73 REIT experience ✓ Founder, Executive Chairman, and • Currently serves on 2 B
Slide 23: AMH Trustee Overview
AMH Trustee Overview Photo Name Years on Board Age Primary Occupation Key Skills & Public Board Experience(1) Independent CEO of Kestrel Advisors • Growth strategies, governance and Former Senior Executive at Wendy Webb 1 62 investor communication ✓ Ticketmaster and The Walt Disney • Currently serve
Slide 24: ESG Principles That Guide Us
ESG Principles That Guide Us Sound environmental, social responsibility and corporate governance practices not only make good business sense, they uphold our obligation to employees, residents, communities and shareholders. Develop new homes and residential Contribute to the well-being of the Invest
Slide 25: Appendix
APPENDIX 25
Slide 26: Defined Terms and Non-GAAP Reconciliations
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 27: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of Core NOI to its respective GAAP metric for the three months and trailing 12 months ended June 30, 2020 and of Core revenues to its respective GAAP metric for the trailing 12 months ended June 30, 2020 (amounts in thousan
Slide 28: 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 29: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Fixed Charge Coverage For the Trailing Twelve Months Ended Jun 30, 2020 Interest expense per income statement $ 121,901 Less: amortization of discounts, loan costs and cash flow hedge (7,442) Add: capitalized interest 15,471 Cash interest 129,930 Dividends
Slide 30: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations EBITDA / EBITDAre / Adjusted EBITDAre / Fully Adjusted EBITDAre / Fully Adjusted EBITDAre Margin 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 su
Slide 31: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of net income, as determined in accordance with GAAP, to EBITDA, EBITDAre, Adjusted EBITDAre, Fully Adjusted EBITDAre and Fully Adjusted EBITDAre Margin (amounts in thousands, except percentages): For the Trailing Twelve Mo
Slide 32: 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. Recurring Capital Expenditures For our Same-Home portfolio, R
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