American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (June 2021)
34 slides from American Homes 4 Rent's investor presentation, Jun 8, 2021
Slide 1: June 2021 Investor Highlights
American Homes 4 Rent June 2021 Investor Highlights
Slide 2: Forward-Looking Statements
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 projections and es
Slide 3: AMH At A Glance
3 Largest Builder of Single-Family Homes For Rent with more than 2,000 Deliveries Expected in 2021 11,000 Unit Land Pipeline to Fuel Further Acceleration Highest-Quality Product and Superior Investment Returns Three-Pronged External Growth Strategy Drives Consistent Growth in all Cycles 4,
Slide 4: AMH Recent Highlights & FY 2021 Guidance
4 AMH Recent Highlights & FY 2021 Guidance Record High Occupancy & Rental Rate Growth(1) • Leasing activity continues to accelerate into 2Q21 Strategic Priority: Grow, Grow, Grow • ~24% YoY increase in 2021 total expected AMH Development deliveries • Acquisition team identifying increased 2H21 tradi
Slide 5: AMH Today
5 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 6: AMH Strategic Priority: Grow, Grow, Grow
6 AMH Strategic Priority: Grow, Grow, Grow AMH Development National Builder Program Traditional Channel Three-Pronged Growth Strategy Positions AMH for Opportunistic Capital Allocation and Consistent Growth Throughout a Cycle • Network of relationships with national home builders provides acquisitio
Slide 7: AMH Development - A Scalable and Differentiated Driver of Earnings Growth
7 AMH Development - A Scalable and Differentiated Driver of Earnings Growth 0 19 391 945 1,647 2,050 3,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2016 2017 2018 2019 2020 2021 2023 G ui da nc e M id po in t 3Q16: The First Land Lots are Purchased and the Team Begins to Come Together 1Q16: A
Slide 8: AMH Core FFO Bridge
8 AMH Core FFO Bridge $1.11 $1.16 $1.27 $0.07 $0.13 $0.01 $0.01 $0.01 $0.01 $1.00 $1.05 $1.10 $1.15 $1.20 $1.25 $1.30 $1.35 Three-Pronged External Investment Approach Gaining in Momentum, Driven by AMH Development Same-Home NOI Non Same-Home NOI Strong Execution and Robust Fundamentals Continue to D
Slide 9: AMH vs. the Peer Set
9 AMH vs. the Peer Set 2020 – YTD 2021 Total Shareholder Return(1) (1) Source: S&P Global Market Intelligence. Total Return % YTD through June 4, 2021, with the inclusion of distributions. (2) Source: Bureau of Labor Statistics, March 2021. (3) Source: JBREC April 2021 YoY population growth rate. Yo
Slide 10: Investment Grade Balance Sheet to Drive Growth
10 Investment Grade Balance Sheet to Drive Growth Capital Structure(1) Debt Maturity Schedule(1)(2)(3) Fixed Rate Debt 17.7% Preferred Shares 5.5% Common Shares & OP Units 76.3% Floating Rate Debt 0.5% Balance Sheet Philosophy Maintain flexible investment grade balance sheet with diverse access to
Slide 11: The Market Opportunity
11 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 12: Multi-Year Demand Tailwind and Record-Low Supply
12 Multi-Year Demand Tailwind and Record-Low Supply Single-Family Propensity Increases with Parenthood / AgeMillennials Likely to Enter Prime Single-Family Living Years Existing Single-Family Home Inventory at Lows Mortgage Tax Savings No Longer There for Entry-Level Home Buyers Mortgage Interest an
Slide 13: Ideal AMH Footprint: Migration Trends Existing Even Prior to Pandemic
13 Ideal AMH Footprint: Migration Trends Existing Even Prior to Pandemic Sources: U.S. Census Bureau; AMH Research, John Burns Real Estate Consulting, LLC (Data: YoY Change from July 2018-July 2019) Pub: Oct-20. • Observable 2018 - 2019 trends of out-bound migration from coastal urban centers to hig
Slide 14: Differentiated Growth Strategy: AMH Development
14 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 15: AMH Development – Revolutionizing the Industry
15 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 • Existing AMH subma
Slide 16: AMH Development in Highly Desirable Neighborhoods Within Current Footprint
16 AMH Development in Highly Desirable Neighborhoods Within Current Footprint Bolstering Existing Markets • Continued investment into existing AMH markets • On-the-ground operating intelligence enables land acquisition “sharp shooting” • Active development teams in 16 markets provides geographic div
Slide 17: Building the Ideal Rental Home: First Floor
Building the Ideal Rental Home Open Concept • Designed to current lifestyle preferences First Floor Laundry • Facilitate easier washer/dryer move-in and move-out • Minimize potential washer leaks to first floor 2 or 3 Car Garage • Ample storage space to appeal to resident preferences and promote lon
Slide 18: Building the Ideal Rental Home: Second Floor
Building the Ideal Rental Home Wider Staircase • Facilitate easier move in / move out • Reduces potential nicks and scuffs on walls HVAC in Conditioned Space • Improves energy efficiency, extends system life, and easier access for maintenance and filter changes Large Walk-in Closets & Extra Storage
Slide 19: Exterior Home Features
Exterior Home Features TAMPA CHARLESTON JACKSONVILLE ORLANDO Standardized Floor Plans – Multiple Exteriors Provide construction efficiency across the portfolio 19
Slide 20: Pocket Office: Adaptable Design
Pocket Office • AMH has control over full development lifecycle • Enables data driven decision execution such as incorporation of work from home pocket office Adaptable Design 20
Slide 21: AMH Development Communities
21 AMH Development Communities • AMH leasing office • On-site and convenient access for better resident experience • Club room & casual kitchen • Facilitates social gatherings and neighborhood events • Conference rooms and co-working spaces • Allows for personal meetings • Provides alternative remot
Slide 22: AMH Development – Construction Sustainability
22 AMH Development – Construction Sustainability 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 Enviro
Slide 23: Strong Governance Practices
23 AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices
Slide 24: Corporate Governance Highlights
24 Corporate Governance Highlights Independent & Accountable Stewardship • AMH is governed by a 13-member board of trustees • Independent Chairman of the Board • Annual election of trustees • Majority voting standard (plurality carve-out voting standard only in contested elections) Continued Focus o
Slide 25: ESG Principles That Guide Us
25 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. Contribute to the well-being of the communities in which we operate throu
Slide 26: Appendix
Appendix 26
Slide 27: Defined Terms and Non-GAAP Reconciliations: 2021 Guidance
27 Defined Terms and Non-GAAP Reconciliations 2021 Guidance The Company does not provide guidance for the most comparable GAAP financial measures of net income or loss, rents and other single-family property revenues and property operating expenses, or a reconciliation of the forward-looking non-GAA
Slide 28: Defined Terms and Non-GAAP Reconciliations: Core NOI
28 Defined Terms and Non-GAAP Reconciliations Core NOI For the Trailing Twelve Months Ended Mar 31, 2021 Net income 166,223$ Gain on sale and impairment of single-family properties and other, net (48,523) Depreciation and amortization 350,403 Acquisition and other transaction costs 11,997 Noncash sh
Slide 29: Defined Terms and Non-GAAP Reconciliations: Credit Ratios
29 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 re
Slide 30: Unencumbered Core NOI Percentage and Fixed Charge Coverage
30 Defined Terms and Non-GAAP Reconciliations Unencumbered Core NOI Percentage For the Trailing Twelve Months Ended Mar 31, 2021 Unencumbered Core NOI $ 434,419 Core NOI 648,271 Unencumbered Core NOI Percentage 67.0% Fixed Charge Coverage For the Trailing Twelve Months Ended Mar 31, 2021 Interest ex
Slide 31: EBITDA / EBITDAre / Adjusted EBITDAre
31 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 supplem
Slide 32: FFO / Core FFO / Adjusted FFO Definitions
32 Defined Terms and Non-GAAP Reconciliations 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: Reconciliation of Net Income to Core FFO
33 Defined Terms and Non-GAAP Reconciliations 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: Same-Home and Stabilized Property Definitions
34 Defined Terms and Non-GAAP Reconciliations Same-Home Property A property is classified as Same-Home if it has been stabilized longer than 90 days prior to the beginning of the earliest period presented under comparison. A property is removed from Same-Home if it has been classified as held for sa
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