American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2015)
23 slides from American Homes 4 Rent's investor presentation, Sep 10, 2015
Slide 1: September 2015 Investor Presentation
September 2015 │ Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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. Various
Slide 3: American Homes 4 Rent (AMH) Highlights
Cash Flow • Objective for 2015 is to stabilize portfolio Platform • Company is fully internally managed – acquisition, administration and property management Scale • Company had 37,491 properties in 22 states, as of June 30, 2015 • Provides cost efficiencies and access to capital Operational Platfor
Slide 4: SFR Industry Overview
SFR Industry Overview
Slide 5: Largest Income Producing Asset Class in the U.S.
Largest Income Producing Asset Class in the U.S. • 14.9 million single-family rental homes in the U.S.(1) • Historical “mom & pop” landlord model • Institutional ownership represents only ~1% of total single-family rental market Macro Factors Driving Rental Demand • Household formation continues to
Slide 6: Significant and Growing Demand for Rental Homes
Significant and Growing Demand for Rental Homes Household Formations Outpace New Housing Supply (1) Student Debt Constraining Ability to Buy (2) Homeownership Continues to Decline (3) Substantial Growth in Renter Household Demand (3) (1) Federal Reserve Bank of St. Louis Economic Data and U.S. Censu
Slide 7: Institutional SFR Overview
Institutional SFR Overview
Slide 8: Overview of Institutional SFR Landscape
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 IH AMH Total Other Public Co's Colony SWAY Progress SBY ARPI Tricon MSR Cerberus Smaller Investors Overview of Institutional SFR Landscape SFR sector is poised for consolidation as larger players benefit from cost of capital advantages and smaller
Slide 9: Evolution of Public SFR REITs
$- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 SBY ARPI SWAY AMH Evolution of Public SFR REITs The Public SFR sector has evolved from the first IPO in late 2012 to four public players today, with a total enterprise value of appro
Slide 10: Benchmarking the Public REITs
Benchmarking the Public REITs American Residential Properties, Inc. (NYSE: ARPI) Silver Bay Realty Trust Corp (NYSE: SBY) Starwood Waypoint Residential Trust (NYSE: SWAY) Enterprise value $ 7.0 bn $ 1.4 bn $ 1.2 bn $ 2.7 bn Equity market cap (1) $ 4.7 bn $ 0.6 bn $ 0.6 bn $ 0.9 bn Number of properti
Slide 11: AMH – Overview
AMH – Overview
Slide 12: Large, Diversified Portfolio
Large, Diversified Portfolio • 37,491 high quality homes as of June 30, 2015 • 93.1% total portfolio leased percentage as of June 30, 2015 • Properties in 22 states / 41 markets Scale • Largest public SFR REIT with strong reputation as industry consolidator • Well-developed national operating platfo
Slide 13: Key Milestones Achieved to Date
Key Milestones Achieved to Date Operational Achievements Equity Capital Raises Debt Capital Raises JV Capital Strategic M&A Activity • 37,491 homes • Fully-internalized in-market property management • Centralized leasing, customer service and maintenance call centers • Consistent in- house technolog
Slide 14: National High Quality Portfolio in Attractive Markets
National High Quality Portfolio in Attractive Markets Investment Case – Selected Markets Dallas-Fort Worth • Strong net inbound migration • Robust job growth • Tremendous rental demand Indianapolis • Higher levels of distressed neighborhoods resulting in bigger discounts to replacement cost • Strong
Slide 15: Second Quarter 2015 Operational Update
Second Quarter 2015 Operational Update Quarterly Leasing, Core Revenues and Core NOI IncreasesQ2 2015 Overview • As of June 30, 2015: • Properties owned: 37,491 • Portfolio leased percentage: 93.1% • Portfolio occupancy percentage: 91.5% • Stabilized leased percentage: 95.8% • Stabilized occupancy p
Slide 16: First Half 2015 Performance Highlights
First Half 2015 Performance Highlights Same-Home Results1H 2015 Highlights • Core FFO of $87.2mm, or $0.33 per FFO share, a 37.6% increase compared to 1H 2014 • NOI from initially leased properties of $160.6mm, a 53.9% increase over 1H 2014 • Consistently strong Core NOI margin of 62% Source: Public
Slide 17: AMH – Best in Class Operations
AMH – Best in Class Operations
Slide 18: Operational Life Cycle
Operational Life Cycle Acquisition & Conversion Renovation Leasing Property Management • Acquisition channels: • Auction • Broker / MLS • NPL • M&A / portfolio • Diversified footprint • 22 states / 41 markets • Growing population • Strong demographics • Dedicated team • All acquisitions underwritten
Slide 19: Marketing and Leasing – Stabilizing Occupancy & Optimizing Rents
- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Initial New Renewal Marketing and Leasing – Stabilizing Occupancy & Optimizing Rents Leasing Channels National Call Center – Provides Control & Scalability Tenant Underwriting Leasing Volume “Let Yourself In” Showings AH4R Websi
Slide 20: Property Management – Centralized control, with local touch
Property Management – Centralized control, with local touch 20 District Offices 41 Markets Centralized Corporate Functions • Tenant screening / underwriting • Leasing call center • Customer service call center • Analytics / pricing Scalable internal property management platform with more than 500 pe
Slide 21: NOI and Core NOI Reconciliation
NOI and Core NOI Reconciliation 20 Initially Leased Property NOI is a supplemental non-GAAP financial measure that we define as rents and fees from single-family properties and tenant charge-backs, less property operating expenses for leased single-family properties. Initially Leased Property Core N
Slide 22: FFO and Core FFO Reconciliation
FFO and Core FFO Reconciliation 21 2015 2014 2015 2014 Net loss attributable to common shareholders (17,697)$ (12,250)$ (35,487)$ (25,926)$ Adjustments: Noncontrolling interests in the Operating Partnership 3,861 4,140 7,730 7,855 Depreciation and amortization of real estate assets 56,866 36,793 108
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