American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (March 2019)
24 slides from American Homes 4 Rent's investor presentation, Mar 4, 2019
Slide 1: Investor Highlights March 2019
InvestorInvestor Highlights Highlights March 2019
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: Table of Contents
Table of Contents ➢ 2019 Guidance & Operational Update ……………………………………….. 4 ➢ SFR Sector: Macro Landscape Drives Strong Demand ….…………….. 5 ➢ AMH At A Glance ………………………………………………………….................... 6 ➢ Cornerstones of the AMH Strategy ……………………………....................... 7 ➢ AMH Operating Approach ……
Slide 4: 2019 Guidance & Operational Update
2019 Guidance & Operational Update (1) 2019 Guidance (1) • Entering 2019 in strong occupancy position, Core FFO per share and unit $1.06 - $1.14 with 2018 total year-end occupancy up 260 Strong basis points compared to 2017 year-end Same-Home Portfolio: Occupancy Core revenues growth 3.2% - 4.2% • S
Slide 5: Macro Landscape Drives Strong Demand
Macro Landscape Drives Strong Demand Household Formations Outpace Housing Supply (1) 10 Year Sequential Growth in Single-Family Rental Stock (2) (In (In millions) Fundamental Shifts Support Single-Family Rental Demand Strong AMH Profile • Accelerating demand for single-family rental housing • Over 6
Slide 6: AMH At A Glance
AMH At A Glance 52,783 high-quality Only Investment 3.6% Same Home Approx. $250 properties in 22 Grade Rated 4Q18 Core NOI million of annual states (1) balance sheet in after Capex retained cash flow ~ 200,000 residents SFR sector growth 1,234 employees(1), of 95.8% Same-Home Phoenix, AZ which over
Slide 7: Cornerstones of the AMH Strategy
Cornerstones of the AMH Strategy • Optimize AMH’s differentiated operating platform, with focus on consistent execution OPERATIONAL • Balance centralized control and oversight, with local office touch OPTIMIZATION • Enhance operating efficiencies with innovative and proprietary technology solutions
Slide 8: The AMH Operating Approach
The AMH Operating Approach Centralized approach differentiates AMH operating efficiency Centralized Support ✓ Enhanced efficiency • Call centers ✓ Superior control • Tenant U/W ✓ Ability to make nimble • Lease execution enhancements • Rental pricing ✓ Standardized processes • Maintenance oversight F
Slide 9: How We Invest
How we Invest Built for Rental Traditional MLS Bulk/Portfolio Opportunities • Consists of: AMH Development & • AMH personnel underwrite and • Further leverage mature and National Builder Program inspect all homes acquired through scalable operating platform MLS • Newly built homes expected to • Accr
Slide 10: Where We Invest
Where We Invest Diversified footprint, comprised of high growth markets, ideally positioned for long-term sustainable growth and portfolio optimization flexibility Midwest: % of Total Properties: 17.2% 4Q18 SH Avg. Occupied Days: 94.9% 4Q18 Blended Rate Spread: 2.6% Favorable AMH market trends relat
Slide 11: Investment Grade Balance Sheet
Investment Grade Balance Sheet Capital Structure (1) Debt Maturity Schedule (2) (4)(5) (In thousands, exceptFixed share Rate and Debt per share amounts) (In millions)) (Figures in millions,23.3% except per share amounts) $956 12/31/2016 $892 Common Shares & OP Units 65.2% $580 $510 Floating Rate Deb
Slide 12: Strong Same-Home Performance
Strong Same-Home Performance (Amounts in thousands, except property data) 4Q17 1Q18 2Q18 3Q18 4Q18 Number of Same-Home properties 38,054 38,054 38,054 38,054 38,054 Rents from single-family properties $ 165,243 $ 167,678 $170,136 $ 171,550 $ 172,155 Operating Highlights Fees from single-family prope
Slide 13: Industry Leading Efficiency Metrics
Industry Leading Efficiency Metrics (Dollars in thousands) 4Q17 1Q18 2Q18 3Q18 4Q18 Adjusted EBITDAre Margins Total revenues, excluding tenant charge-backs $ 214,569 $ 222,197 $ 231,566 $ 235,900 $ 236,399 Property operating expenses, net (60,929) (66,353) (67,131) (70,758) (66,979) Property managem
Slide 14: Defined Terms: Average Occupied Days, Core FFO
Defined Terms and Non-GAAP Reconciliations Average Occupied Days Percentage Highligh(1) 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.ts This calculation excludes properties identified as part of our dispositi
Slide 15: Core NOI and Same-Home Core NOI After Capital Expenditures
Defined Terms and Non-GAAP Reconciliations Core Net Operating Income ("Core NOI") and Same-Home Core NOI After Capital Expenditures Highligh(1) Core NOI, which we also present separately for our Same-Home, unencumbered and encumbered portfolios, is a supplemental non-GAAPts financial measure that we
Slide 16: Reconciliations of Core Revenues, Expenses and Core NOI
Defined Terms and Non-GAAP Reconciliations The following are reconciliations of core revenues, core property operating expenses, Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures to their respective GAAP metrics for the trailing five quarters (amounts in thousands): (1)
Slide 17: Net Income to Core NOI Reconciliation
Defined Terms and Non-GAAP Reconciliations For the Three Months Ended Highligh(1) Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, 2017 2018 2018 2018 ts 2018 Net income $ 30,533 $ 21,525 $ 25,898 $ 30,281 $ 34,734 Remeasurement of participating preferred shares (1,500) (1,212) - - - Loss on early extinguish
Slide 18: Credit Metrics
Defined Terms and Non-GAAP Reconciliations Credit Metrics We present the following selected metrics because we believe they are helpful as supplemental measures in assessing our ability to service our financing obligations and in evaluating balance sheet leverage against that of other real estate co
Slide 19: Net Debt to Adjusted EBITDAre
Defined Terms and Non-GAAP Reconciliations Net Debt to Adjusted EBITDAre Dec 31, 2018 Total Debt $ 2,842,510 Less: cash and cash equivalents (30,284) Less: asset-backed securitization certificates (25,666) Less: restricted cash related to securitizations (45,716) Net debt $ 2,740,844 Adjusted EBITDA
Slide 20: EBITDA / EBITDAre / Adjusted EBITDAre Definitions
Defined Terms and Non-GAAP Reconciliations EBITDA / EBITDAre / Adjusted EBITDAre / Adjusted EBITDAre after Capex and Leasing Costs / Adjusted EBITDAre Margin / Adjusted EBITDAre after Capex and Leasing Costs Margin EBITDA is defined as earnings before interest, taxes, depreciation and amortization.
Slide 21: Net Income to Adjusted EBITDAre Reconciliation
Defined Terms and Non-GAAP Reconciliations The following is a reconciliation of net income, determined in accordance with GAAP, to EBITDA, EBITDAre, Adjusted EBITDAre, Adjusted EBITDAre after Capex and Leasing Costs, Adjusted EBITDAre Margin and Adjusted EBITDAre after Capex and Leasing Costs Margin
Slide 22: Platform Efficiency Percentage
Defined Terms and Non-GAAP Reconciliations Platform Efficiency Percentage Management costs, including (1) property management expenses, net of tenant charge-backs and excluding noncash share-based compensation expense, (2) general and administrative expense, excluding noncash share-based compensatio
Slide 23: Property Enhancing Capex and Recurring Capital Expenditures
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
Slide 24: 2019 Guidance
2019 Guidance Guidance Summary Full Year 2019 Core FFO attributable to common share and unit holders $1.06 - $1.14 Same-Home Core revenues growth 3.2% - 4.2% Core property operating expenses growth 3.5% - 4.5% Core NOI After Capital Expenditures growth 2.6% - 3.6% Reconciliation of Core FFO attribut
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