American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Merger or Acquisition (March 2016)
16 slides from American Homes 4 Rent's merger presentation, Mar 8, 2016
Slide 1: Forward-looking statements disclaimer
2 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. This presentation contains forwar
Slide 2: Transaction Details
Transaction Details Acquisition of ARP Enhances Position as the Premier Owner / Operator of Single-Family Rental Homes Merger Structure Negotiated transaction with a fixed exchange ratio; 1.135 shares of AMH for each share of ARPI Merger closed on February 29, 2016 Pro forma Ownership Former ARPI sh
Slide 3: Strategic Rationale
Strategic Rationale Strategic Combination Provides Substantial Benefits to Shareholders Scale Solidifies AMH’s position as the largest public owner / operator of single-family rental homes Increases AMH’s total market capitalization to $8.5 billion Improves market float Portfolio Total portfolio of
Slide 4: Integration Process and Progress
Integration Process and Progress Significant Experience in Integrating Portfolios Accounting / Data Systems AMH and ARP used the same accounting system Completed integration of accounting and data systems over weekend prior to merger close All systems operational March 1, 2016 Tenant Collections & R
Slide 5: Integration Benefits and Impacts
Integration Benefits and Impacts Leasing / Collections Increased rental rates using AMH pricing model Improve ARP to AMH standard (approximately 1% bad debt) Rental rates can be increased as leases expire Higher collection costs, higher vacancy, and increased turn costs while working through ARP del
Slide 6: Disposition of Non-Core Assets
Disposition of Non-Core Assets 1,400-1,500 ARP Homes Provides Capital for Strategic Objectives Non-Core AMH Homes 1,400-1,500 ARP homes which represent less than 10% of ARP portfolio value Candidates for sale include homes that do not meet AMH quality or locational standards, as well as strategic sa
Slide 7: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Balance Sheet Supports Strategy Balance % of Total Interest Rate (2) Years to Maturity Floating rate debt: Line of credit (3) $382,000 11% 3.19% 2.6 AH4R 2014-SFR1 (3) 472,954 14% 2.07% 3.3 ARP 2014-SFR1 (3) 342,115 10% 2.44% 3.5 Total floating rate debt 1,197,
Slide 8: Core FFO Accretion
Core FFO Accretion Strategic Acquisition Expected to Provide Core FFO Per Share Accretion of $0.04 to $0.05 in 2017 G&A Elimination of 80% of ARP G&A Leasing & Collections Increase ARP average rent to reflect superior AMH pricing model, to be captured over time as leases roll Improve ARP bad debt ex
Slide 9: Appendices
Appendices 1. Portfolio 2. AMH Platform 10
Slide 10: Appendix 1. Combined Portfolio
Above data as of February 29, 2016 (1) Excludes current and former preferred operator homes Appendix 1. Combined Portfolio 11 AMH AMH Pre-Merger Post-Merger Change Total non-preferred operator homes 38,973 46,580 19.5% Current preferred operator homes - 594 --% Former preferred operator homes - 735
Slide 11: Appendix 1. Portfolio Concentrations
Appendix 1. Portfolio Concentrations 80% of All Homes Located in Markets with 1,000+ Homes Increased Market Concentration Markets with 2,000+ Homes Number of Homes Dallas-Fort Worth, TX 4,355 Atlanta, GA 3,798 Houston, TX 3,159 Indianapolis, IN 2,931 Phoenix, AZ 2,779 Charlotte, NC 2,697 Nashville,
Slide 12: Appendix 1. Combined Portfolio Statistics by Market
Appendix 1. Combined Portfolio Statistics by Market Above data as of February 29, 2016 13 Market Pre-Merger Post-Merger Pre-Merger Post-Merger Leased Percentage Occupied Percentage Average Contractual Monthly Rent Per Property Average Square Footage Average Age (years) Dallas-Fort Worth, TX 3,236 4,
Slide 13: Appendix 2. National Platform
Appendix 2. National Platform SC TN WA OR CA NV UT CO AZ TX IL IN OH GA FL SC TN NC KY OK WI ID NM MS AMH Property Management Offices AMH Presence Only AMH and ARP Presence 14
Slide 14: Appendix 2. Best-in-Class Platform Supports Sector-Leading Operating Performance
Appendix 2. Best-in-Class Platform Supports Sector-Leading Operating Performance Scalable Platform Leasing Property Management National Platform: Own approx. 48,000 Homes Bargaining power on national contracts Utilize 3,000 contractors nationwide Diversified footprint 22 states Concentrated in targe
Slide 15: Investor Relations
Investor Relations Phone: (855) 794-AH4R (2447) Email: investors@ah4r.com www.americanhomes4rent.com
Slide 16: Investor Relations
AMERICAN Investor Relations ia Phone: (855) 794-AH4R (2447) Email: investors@ah4r.com www.americanhomes4rent.com
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