American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Corporate Update (May 2014)
20 slides from American Homes 4 Rent's corporate update, May 7, 2014
Slide 1: May 2014
MS Margin 3.45 Text Margin 2.90 MS Margin 5.00 MS Margin 5.00 Footnote Margin 4.60 Colors FBR Sky 178 210 224 FBR Forest 0 72 70 FBR Cream 222 215 170 FBR Burgundy 110 0 50 FBR Silver 178 178 178 FBR Blue 5 5 80 FBR Sage 122 178 175 FBR Tan 184 155 104 FBR Brick 200 100 100 FBR Charcoal 51 51 51 FBR
Slide 2: Disclaimer
1 Disclaimer 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. “AH L LC” refers to
Slide 3: AMH Corporate Update
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Slide 4: Large, Diversified Portfolio
3 Large, Diversified Portfolio • 25 , 505 high quality homes as of March 31 , 2014 ( 26 , 018 as of April 30 , 2014 ) • 20 , 666 homes leased as of March 31 , 2014 ( 21 , 973 as of April 30 , 2014 ) • Properties in 22 states / 41 markets Strong Balance Sheet • Strong balance sheet with conservative
Slide 5: AMH Business Strengths
AMH Business Strengths Tenant Driven Business • AMH targets properties that fit the following: • Traditional middle class neighborhoods in growing markets • Minimum 3 bedrooms, 2 bathrooms, two car garage • Newer properties in attractive neighborhoods Significant Scale Advantage • Well developed nat
Slide 6: Investment Philosophy
5 Investment Philosophy Focus on Tenant x Value created by finding the right tenant x Target tenants are families with children as this creates ties to the property given proximity to strong schools x S tronger schools are generally in newer neighborhoods x Long term price appreciation x Tenants lik
Slide 7: 2014 First Quarter Operational Update
6 2014 First Quarter Operational Update Quarterly Occupancy, Revenue and NOI Increases Q1 Overview • As of 3/31/2014: • Properties Owned: 25,505 • Leased Properties: 20,666 • As of 4/30/2014: • Properties Owned: 26,018 • Leased Properties: 21,973 • 1Q14 acquisitions: 2,237 • 1Q14 leased property inc
Slide 8: First Quarter 2014 Performance Highlights
7 First Quarter 2014 Performance Highlights • Revenues of $77.3 million, a 19.1% increase over fourth quarter of 2013 • Net Operating Income (NOI) from leased properties of $47.7 million, a 19.4% increase over fourth quarter 2013 • Acquired 2,237 properties, increasing total portfolio to 25,505 home
Slide 9: National High Quality Portfolio in Attractive Markets
8 National High Quality Portfolio in Attractive Markets (1) As of March 31, 2014 (2) For illustrative purposes, approximate cost per home includes acquisition costs, renovation fees and other costs incurred to the REIT for purchase and renovation (3) Based on number of properties as of March 31, 201
Slide 10: Favorable Operational Comparison to Multi-Family
9 Favorable Operational Comparison to Multi - Family NOI Margin Comparison Occupancy Comparison • Renting primarily to families who desire high quality neighborhoods and school systems • 72% renewal rate for Q1 2014 • Current AMH rents of $0.70 per square foot provides superior value to renters and
Slide 11: Property Life Cycle
10 Property Life Cycle • Acquisition channels: - Auction - Broker / MLS - NPL / Other • Diversified footprint - 22 states / 41 markets - Growing demographics • Dedicated team - All acquisitions underwritten / executed by AMH personnel • Comprehensive inspection and renovation process • Utilize 3,000
Slide 12: Acquisition, Renovation and Leasing Rates
11 Acquisition, Renovation and Leasing Rates Number of Properties 2012 2013 2014 (1) “Rent Ready” includes properties for which initial construction has been completed during each quarter. (2) “Leases Signed” includes the number of initial leases signed each quarter (includes Pre - Existing Leases).
Slide 13: American Homes 4 Rent
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Slide 14: Proven Acquisition Platform
413 943 2,534 3,975 4,147 5,731 2,937 2,001 2,237 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 MLS Auctions 13 Proven Acquisition Platform Screened Approximately 30,000 Homes Examined Physical Criteria of Homes; Inspected Title & Research HOA Underwrite 35% of Homes Screened Placed Bids on ~25% of Homes Underwritten
Slide 15: Market Leading Renovation Capabilities
14 Market Leading Renovation Capabilities Standardized Renovation Process Homes Delivered Rent Ready per Quarter Before and After • Comprehensive inspection and renovation budgeting • Utilize over 3,000 preferred contractors nationwide • Achieve substantial discounts through scale - enabled bargaini
Slide 16: Successful Marketing and Leasing Process
15 Successful Marketing and Leasing Process Tenant Underwriting Lease Execution 96.2% Leasing Channels Initial Leases Signed per Quarter Designed to minimize potential tenant defaults Multiple Listing Service Referral • Rental History • Credit History • Criminal Records • Average Income: $85,000 • 4
Slide 17: NOI and Core NOI Reconciliation
16 NOI and Core NOI Reconciliation NOI is a supplemental non - GAAP financial measure that we define as rents and fees from single - family properties and tenant charge - backs, less property operating expenses for leased single - family properties . Core NOI is also a supplemental non - GAAP financ
Slide 18: NOI and Core NOI Reconciliation (continued)
17 NOI and Core NOI Reconciliation (continued) The following is a reconciliation of NOI and Core NOI to net income / (loss) determined in accordance with GAAP : For the Three Months Ended March 31, June 30, Sept. 30, Dec. 31, March 31, 2013 2013 2013 2013 2014 Net income / (loss) (6,857)$ 1,123$ (3,
Slide 19: FFO and Core FFO Reconciliation
18 FFO and Core FFO Reconciliation The following is a reconciliation of net loss attributable to common shareholders to FFO and Core FFO for three months ended Dec ember 31, 2013 and March 31, 2014 (amounts in thousands, except share and per share information): We calculate FFO in accordance with th
Slide 20: MS Margin 3.45 Text Margin 2.90 MS Margin 5.00 MS Margin 5.00 Footnote Margin
MS Margin 3.45 Text Margin 2.90 MS Margin 5.00 MS Margin 5.00 Footnote Margin 4.60 Colors FBR Sky 178 210 224 FBR Forest 0 72 70 FBR Cream 222 215 170 FBR Burgundy 110 0 50 FBR Silver 178 178 178 FBR Blue 5 5 80 FBR Sage 122 178 175 FBR Tan 184 155 104 FBR Brick 200 100 100 FBR Charcoal 51 51 51 FBR