American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (September 2021)
28 slides from American Homes 4 Rent's investor presentation, September 2021
Slide 1: Investor Presentation & Business Update
Investor Presentation & Business Update September 2021
Slide 2: Legal Disclosures
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
Slide 3: AMH At A Glance
AMH At A Glance Peer-Leading Growth Industry Leading First-of-its-Kind Built- & Balance Sheet Operating Platform For-Rent Platform ➢ 2021 Guidance of 13.8% Core ➢ 54,785 high-quality properties ➢ Largest Builder of Single-Family FFO Growth at Midpoint, in 22 states with ~ 200,000 Homes For Rent with
Slide 4: AMH Today
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 4
Slide 5: Same-Home Operational Update
Same-Home Operational Update Strong Demand Tailwinds Persist - Modest Seasonality Returning Same-Home Average Occupied Days Average Blended Change in Rent 2020 2021 2020 2021 98.0% 10.0% 97.9% 8.0% 9.2% 97.0% 97.4% 8.0% 6.0% 96.0% 96.0% 4.0% 95.0% 95.5% 2.0% 2.4% 2.1% 94.0% 0.0% 2Q July/August 2Q Ju
Slide 6: Full Year 2021 Guidance – Tracking to High-End
Full Year 2021 Guidance – Tracking to High-End Industry Leading 2021 Expected Core FFO Growth(1) Full Year 2021 Guidance(2) Additional Third Quarter Considerations: Range Midpoint ❑ Full year Same-Home Core Revenue and Core NOI growth, along with Core FFO tracking to high-end of Core FFO per share a
Slide 7: AMH vs. the Peer Set
AMH vs. the Peer Set 2020 – 2021 YTD Total Shareholder Return(1) Implied ’21 Core FFO Growth(2) (Midpoint of Guidance) 56.9% 13.8% 12.5% 51.6% 48.5% 7.6% 39.4% 5.0% -2.5% -3.8% 20.1% 12.9% -7.7% 12.7% 6.7% -11.0% AMH MAA CPT INVH UDR AVB ESS EQR AMH INVH CPT MAA UDR ESS AVB EQR Est. 2021 YoY Populat
Slide 8: AMH Strategic Priority: Grow, Grow, Grow
AMH Strategic Priority: Grow, Grow, Grow Three-Pronged Growth Strategy Enables Opportunistic Total Inventory Additions(1) Capital Allocation and Consistent Growth AMH Development Traditional Acquisitions National Builder Wholly-Owned Joint Venture 4,450 AMH Development 4,500 300 ❑ Early-mover advant
Slide 9: Investment Grade Balance Sheet
Investment Grade Balance Sheet Capital Structure(1) Debt Maturity Schedule(1)(2) Liquidity(3) $1,138 $953 Common $869 Shares & OP Units, 79.1% $630 Preferred Shares, 2.1% $510 $410 Revolving Credit Facility, 3.4% $10 $21 $21 $10 $10 $10 Fixed Rate Debt, 15.4% Unsecured Senior Notes Asset-backed Secu
Slide 10: The Market Opportunity
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 10
Slide 11: Macro Factors Drive Single-Family Rental Tailwind
Macro Factors Drive Single-Family Rental Tailwind Decade of Undersupply = Massive Housing Shortage Millennials Enter Prime Single Family Living Years TTM Average National Existing Home Inventory (1) (MM) 2.0% Projected Population Growth(2) 3.0 1.5% 2.5 Existing Home Inventory ~50% Below Long-Term Av
Slide 12: Migration Trends Favor AMH Footprint
Migration Trends Favor AMH Footprint US Census Migration Data 2019 - 2020 Trends Existed Prior to the Pandemic and Continue to This Day ❑ Observable 2019 - 2020 trends of out-bound migration from coastal urban centers to higher quality of life markets ❑ Trends continue through 2021 as the pandemic r
Slide 13: Differentiated Growth Strategy: AMH Development
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 13
Slide 14: Not All Build-To-Rent ("BTR") is the Same
Not All Build-To-Rent (“BTR”) is the Same AMH Builds the Ideal Rental Home Through the Lens of our Best-In-Class Operating Platform Other BTR Product Design and create ideal rental Homes and Communities using Less opportunity for alignment of Strategy data and insights from AMH’s integrated develo
Slide 15: AMH Development
AMH Development Immediate Value Create by Building Superior BTR Homes at a 20-25% Discount to Market Value Desirable Durable Efficient ❑ Communities located in existing, ❑ Designed for durability and long- ❑ Superior quality at a significant (20- high-performing AMH submarkets term efficient mainten
Slide 16: Case Study: AMH Development Markets
Case Study: AMH Development Markets Built in Desirable Neighborhoods Within Current Market Footprint Las Vegas Atlanta AMH Development Communities AH4R Properties Charlotte Boise 16
Slide 17: AMH Development
AMH Development A Predictable and Consistent Driver of Earnings Growth, Fueled by our Extensive Land Pipeline AMH Development Deliveries AMH Development Land Pipeline 4,000 Total Lots Owned and Controlled 15,000 14,000 3,500 3,000 + 3,000 12,000 2,500 8,954 9,000 2,050 2,000 1,647 6,377 1,500 6,000
Slide 18: Strong Governance Practices
AMH Today The Market Opportunity Differentiated Growth Strategy: AMH Development Strong Governance Practices 18
Slide 19: Our Approach to Sustainability
Our Approach to Sustainability ❑ Environmentally ❑ Building at scale helps us to achieve efficiencies while still providing a durable and desirable home for our residents. LED lighting, LVP flooring, Energy-efficient HVAC units friendly construction and water saving fixtures and devices are among th
Slide 20: Corporate Governance Highlights
Corporate Governance Highlights ▪ AMH is governed by a 13‐member board of trustees Independent & Accountable ▪ Independent Chairman of the Board Stewardship ▪ Annual election of trustees ▪ Majority voting standard (plurality carve‐out voting standard only in contested elections) ▪ Continual process
Slide 21: Appendix
Appendix 21
Slide 22: Defined Terms and Non-GAAP Reconciliations
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-GAAP f
Slide 23: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Core Net Operating Income ("Core NOI“) Core NOI, which we also present separately for our Same-Home, unencumbered and encumbered portfolios, is a supplemental non-GAAP financial measure that we define as core revenues, which is calculated as rents and other
Slide 24: Defined Terms and Non-GAAP Reconciliations
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 real
Slide 25: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Fixed Charge Coverage For the Trailing Twelve Months Ended Jun 30, 2021 Interest expense per income statement $ 113,298 Less: amortization of discounts, loan costs and cash flow hedge (7,562) Add: capitalized interest 23,040 Cash interest 128,776 Dividends
Slide 26: Defined Terms and Non-GAAP Reconciliations
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 supplement
Slide 27: Defined Terms and Non-GAAP Reconciliations
Defined Terms and Non-GAAP Reconciliations Funds from Operations (“FFO”) / Core 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 FF
Slide 28: Defined Terms and Non-GAAP Reconciliations
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 sale
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