American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (March 2021)
35 slides from American Homes 4 Rent's investor presentation, Mar 5, 2021
Slide 1: Investor Highlights March 2021
Investor Highlights March 2021
Slide 2: Legal Disclosures
Legal Disclosures 2 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
Slide 3: AMH At A Glance
AMH At A Glance 3 Industry Leading Operating Platform Peer-Leading Growth & Balance Sheet First-of-its-Kind Built- For-Rent Platform ➢ 2021 Guidance of nearly 8% Core FFO Growth at the Midpoint, the Highest Among Residential REIT Peers ➢ Only Investment Grade Balance Sheet Among SFR REITs ➢ Net Debt
Slide 4: AMH Today
4 AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices
Slide 5: AMH Recent Operating Highlights & FY 2021 Guidance
AMH Recent Operating Highlights & FY 2021 Guidance 5 Note: Refer to Defined Terms and Non-GAAP Reconciliations, as well as the 4Q20 Supplemental Information Package, for defined metrics and reconciliations to GAAP. (1) Refer to slide 26 for 2021 Outlook disclosure. Record High Occupancy & Rental Rat
Slide 6: AMH Strategic Priority: Grow, Grow, Grow
6 AMH Strategic Priority: Grow, Grow, Grow AMH Development National Builder Program Traditional Channel The AMH Three-Pronged Growth Strategy • Early-mover advantage on built-for-rental strategy, which has potential to revolutionize the industry, requires clarity for long-term capital • Barriers to
Slide 7: AMH Development - A Scalable and Differentiated Driver of Earnings Growth
AMH Development - A Scalable and Differentiated Driver of Earnings Growth 7 • AMH’s scalable first-of-its-kind Built-to-Rent platform is the culmination of a long-term strategic vision and consistent execution • Full control and confidence around portfolio growth • Data driven strategy targets proje
Slide 8: 2020 Total Shareholder Return and AMH vs. the Peer Set
8 2020 Total Shareholder Return(1) AMH vs. the Peer Set (1) Source: S&P Global Market Intelligence. Total Return % for the full year 2020, with the inclusion of distributions. (2) Source: Company filings except for AVB where consensus estimates as of 2/19/21 were utilized as the Company did not prov
Slide 9: The Market Opportunity
9 AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices
Slide 10: Multi-Year Demand Tailwind and Record-Low Supply
Multi-Year Demand Tailwind and Record-Low Supply 10 (1) Sources: U.S. Census Bureau; AMH Research (2) Sources: U.S. Census Bureau; John Burns Real Estate Consulting, LLC (3) Sources: NAR; John Burns Real Estate Consulting, LLC (4) Source: Source: John Burns Real Estate Consulting, LLC (Data: 2019, u
Slide 11: Ideal AMH Footprint: Migration Trends Existing Even Prior to Pandemic
Ideal AMH Footprint : Migration Trends Existing Even Prior to Pandemic 11 Sources: U.S. Census Bureau; AMH Research, John Burns Real Estate Consulting, LLC (Data: YoY Change from July 2018-July 2019) Pub: Oct-20. US Census Migration Data 2018 - 2019 • Observable 2018 - 2019 trends of out-bound migra
Slide 12: AMH's Strategy to Drive Shareholder Value
12 AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices
Slide 13: AMH Has a Well-Defined Plan to Drive Shareholder Value
AMH Has a Well-Defined Plan to Drive Shareholder Value 13 Operational Optimization / Efficiencies • Continuous operational optimization expected to create long-term margin expansion profile • Balance centralized control and oversight, with local office touch • Enhance operating efficiencies with inn
Slide 14: AMH Today – Best-in-Class Operational Efficiency
14 AMH Today – Best-in-Class Operational Efficiency Core revenues (excl chargebacks) $ 1,011,707 Property operating expenses, net (292,622) Property management expenses, net (84,985) Core NOI $ 634,100 General & administrative expenses, net (41,944) Other revenues & expenses, net 6,650 Adjusted EBIT
Slide 15: Example ROI on a Home Upgraded in Q4 2020
15 Example ROI on a Home Upgraded in Q4 2020 Kitchen, Bathroom and General Upgrades $ 10,000 Annual Rent Premium ($93/mo) (1) $ 1,116 Return on Incremental Investment 11.2% 1 (1) Reflects rental premiums in excess of the 7.6% (portfolio average Q4 2020) achieved as a result of the Upgrade program. D
Slide 16: AMH Development – Revolutionizing the Industry
AMH Development – Revolutionizing the Industry 16 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 • Existing AMH subma
Slide 17: Premium Return & Margin Enhancement
17 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 process risk • Short vertical construction cy
Slide 18: AMH Development – Case Study (Stone Creek)
Community Stats • Stone Creek Community located in Atlanta (Loganville), GA • 127 total units: • 2,300 average square feet • Average 4 bed / 2.5 bath AMH Development – Case Study (Stone Creek) 18 2 Construction Details • Total project cost $33.1 million • Projected 6.0% stabilized project economic y
Slide 19: AMH Develops Homes That Are Environmentally Friendly
19 Granite countertops, hard surface luxury vinyl plank (LVP) flooring and LED lighting are all designed to last for many years without repairs or replacement. We include tree planting plans as part of community design. AMH Develops Homes That Are Environmentally Friendly Development & Construction
Slide 20: Capital Structure and Debt Maturity Schedule
20 Capital Structure(1) Debt Maturity Schedule(1)(2)(3) Fixed Rate Debt 19.3% Preferred Shares 6.0% Common Shares & OP Units 74.7% Balance Sheet Philosophy ✓ Maintain flexible investment grade balance sheet with diverse access to capital ✓ Continue optimizing capital stack and utilize investment gra
Slide 21: Superior Customer Service – Leveraging Technology to Enhance our Platform
21 4 Superior Customer Service – Leveraging Technology to Enhance our Platform Resident satisfaction is the key to consistent results and is paramount to our long-term success. ➢ District offices and field management teams provide exceptional customer service and care with a local touch ➢ Ongoing re
Slide 22: AMH Strong Governance Practices
22 AMH Today The Market Opportunity AMH’s Strategy to Drive Shareholder Value AMH Strong Governance Practices
Slide 23: Corporate Governance Highlights
Corporate Governance Highlights 23 Independent & Accountable Stewardship • AMH is governed by a 13‐member board of trustees • Independent Chairman of the Board • Annual election of directors • Majority voting standard (plurality carve‐out voting standard only in contested elections) Continued Focus
Slide 24: ESG Principles That Guide Us
ESG Principles That Guide Us 24 Sound environmental, social responsibility and corporate governance practices not only make good business sense, they uphold our obligation to employees, residents, communities and shareholders. Contribute to the well-being of the communities in which we operate throu
Slide 25: Appendix
APPENDIX 25
Slide 26: Reconciliations: 2021 Guidance
Defined Terms and Non-GAAP Reconciliations 26 2021 Guidance The Company does not provide guidance for the most comparable GAAP financial measures of net income or loss, total revenues and property operating expenses, or a reconciliation of the forward-looking non-GAAP financial measures to the compa
Slide 27: Reconciliations: Core NOI
Defined Terms and Non-GAAP Reconciliations 27 Core NOI For the Year Ended Dec 31, 2020 Net income 154,829$ Gain on sale of single-family properties and other, net (44,194) Depreciation and amortization 343,153 Acquisition and other transaction costs 9,298 Noncash share-based compensation - property
Slide 28: Reconciliations: Credit Ratios
Defined Terms and Non-GAAP Reconciliations 28 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 re
Slide 29: Reconciliations: Unencumbered Core NOI Percentage
Defined Terms and Non-GAAP Reconciliations 29 Unencumbered Core NOI Percentage For the Trailing Twelve Months Ended Dec 31, 2020 Unencumbered Core NOI $ 422,079 Core NOI 634,100 Unencumbered Core NOI Percentage 66.6% Fixed Charge Coverage For the Trailing Twelve Months Ended Dec 31, 2020 Interest ex
Slide 30: Reconciliations: EBITDA / Adjusted EBITDAre
Defined Terms and Non-GAAP Reconciliations 30 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
Slide 31: Reconciliations: Net Income to EBITDAre
Defined Terms and Non-GAAP Reconciliations 31 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 Year Ended Dec
Slide 32: Reconciliations: FFO / Core FFO / Adjusted FFO
Defined Terms and Non-GAAP Reconciliations 32 FFO / Core FFO / Adjusted 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 FFO as net
Slide 33: Reconciliations: Core FFO
Defined Terms and Non-GAAP Reconciliations 33 The following is a reconciliation of 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): (1) Included in
Slide 34: Reconciliations: Property Enhancing Capex
Defined Terms and Non-GAAP Reconciliations 34 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
Slide 35: Reconciliations: Total Debt
Defined Terms and Non-GAAP Reconciliations 35 Total Debt Includes principal balances on asset-backed securitizations, unsecured senior notes and borrowings outstanding under our revolving credit facility as of period end, and excludes unamortized discounts and unamortized deferred financing costs. T
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