American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Citi 2014 Global Property Conference
31 slides from American Homes 4 Rent's conference presentation, Mar 3, 2014
Slide 1: Citi 2014 Global Property Conference March 2014
Citi 2014 Global Property Conference March 2014
Slide 2: Disclaimer
2 Disclaimer “We,” “AMH,” “AH4R,” “our company,” “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 LLC” or “our founders” refer to American Homes 4 Rent, LLC, a Delaware limited liability comp
Slide 3: Overview of American Homes 4 Rent
Overview of American Homes 4 Rent 3
Slide 4: Large, Diversified Portfolio and Key Strengths
4 Large, Diversified Portfolio 23,268 high quality homes as of December 31, 2013 Properties in 22 states / 42 markets Strong Balance Sheet Strong balance sheet with conservative approach to leverage (LTV of 14.2%)1 ~$3.0 billion of unencumbered assets as of September 30, 20131 Differentiated Access
Slide 5: 2013 Fourth Quarter Operational Update
5 2013 Fourth Quarter Operational Update Quarterly Occupancy, Revenue and NOI Increases Q4 Overview As of 12/31/2013: Properties Owned: 23,268 Leased Properties: 17,328 Acquisitions in Q4: 2,001 Initial leases signed in Q4: 3,473 Completed property management internalization Operational enhancements
Slide 6: Market Leading Scale & Effectiveness
7 Market Leading Scale & Effectiveness Market Capitalization ($mm)2 $3,942 $614 $591 $1,062 # of Markets with > 500 homes 16 3 2 3 Average Age (Years) 11 26 19 34 Average Monthly Rent3 $1,368 $1,161 $1,173 $1,553 Typical Investment Per Home4 $170,000 $135,000 $128,330 $140,119 Portfolio Occupancy5 9
Slide 7: Premier Brand and Long-Term Strategy
8 Premier Brand and Long-Term Strategy
Slide 8: Single Family Residential Market and Analysis
Single Family Residential Market and Analysis 9
Slide 9: Strong Demand for Single Family Rentals Will Create Opportunity for Rental Rate Growth
10 Strong Demand for Single Family Rentals Will Create Opportunity for Rental Rate Growth U.S. Shift to Rentership1 (1) Source: JBREC as of May 2013. (2) Per the Federal Reserve white paper “The Post-Foreclosure Experience of U.S. Households.” Significant shift away from ownership, creating a streng
Slide 10: Single Family Has Similar Characteristics to Multi-Family in its Early Stages
11 Single Family Has Similar Characteristics to Multi-Family in its Early Stages Consolidation opportunity for operators with scale and access to capital Highly fragmented ownership: Total institutional ownership is less than 2.0% of market AMH ownership is less than 0.2% of total single family supp
Slide 11: Favorable Operational Comparison to Multi-Family
12 Favorable Operational Comparison to Multi-Family NOI Margin Comparison Occupancy Comparison Renting primarily to families who desire high quality neighborhoods and school systems 73% renewal rate for the Q4 2013 Current AMH rents of $0.70 per square foot provides superior value to renters and gre
Slide 12: Company History and Senior Management
Company History and Senior Management 13
Slide 13: History of American Homes 4 Rent
History of American Homes 4 Rent Q4 2013 23,268 Announced engagement of advisors in structuring and negotiating AMH’s first single family rental securitization Completed internalization of property management AMH completes two preferred stock offerings with aggregate proceeds of $236 million Q3 2013
Slide 14: Leadership Team with Proven History of Success
15 Leadership Team with Proven History of Success Experienced and Diversified Independent Members of the Board of Trustees Dann Angeloff Matthew Hart Jim Kropp Lynn Swann Kenneth Woolley Overview of Experience President of The Angeloff Company Former Trustee, University of Southern California Former
Slide 15: Acquisitions and Renovations
Acquisitions and Renovations 16
Slide 16: Ongoing Evaluation of Acquisition Markets
17 Ongoing Evaluation of Acquisition Markets Identifying Attractive Target Markets Auction / Trustee MLS / Short Sale Portfolio / NPL Acquisition Channels SC SC AZ TX GA FL SC TN NC
Slide 17: Proven Acquisition Platform
18 Proven Acquisition Platform Property Screening and Underwriting Process Acquisitions by Channel 2012 In a typical month AMH underwrites approximately 40,000 homes and acquires 2% of homes underwritten Key Underwriting Criteria 1) Location 2) Physical criteria 3) Financial criteria 2013
Slide 18: Market Leading Renovation Capabilities
19 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 bargaining power
Slide 19: Leasing & Property Management
Leasing & Property Management 20
Slide 20: Successful Marketing and Leasing Process
21 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: $79,000 4.9x Income
Slide 21: Strong Property Management Ensures Tenant Satisfaction and Continuing Asset Quality
22 Strong Property Management Ensures Tenant Satisfaction and Continuing Asset Quality Proactive Maintenance Extensive walkthroughs with tenants prior to occupancy Full property inspections performed every 6 months Quarterly drive-bys of each property HOA requirement is another line of defense to en
Slide 22: Financial Information
7 = a AMERICAN e Financial Information
Slide 23: Q3 Performance Highlights
24 Q3 Performance Highlights Revenues of $49.5 million, a 173% increase from the prior period’s $18.1 million in sales Net Operating Income (NOI) from leased properties of $31.2 million, a 191% increase from the second quarter Acquired 2,937 properties for approximately $450 million Properties rent-
Slide 24: Conservative Capital Structure with Significant Dry Powder
25 Conservative Capital Structure with Significant Dry Powder Quarterly Balance Sheet Overview ~$3.0 billion of unencumbered assets add significant leverage capacity $800 million credit facility $236.5 million of participating preferred stock issued: 5% Coupon 50% of HPA upside limited to 9% IRR Cur
Slide 25: AMH Business Strengths
AMH Business Strengths Tenant Driven Business AMH targets properties that fit an ideal tenant profile 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 nati
Slide 26: Appendix
AMERICAN P Appendix ja
Slide 27: Top Markets Summary
28 Top 10 Markets Summary Note: As of 9/30/2013. (1) Includes 377 properties in which we hold an approximate one-third interest. Represents 32 markets in 19 states. Represents property acquisition cost less accumulated depreciation. Properties Owned 1 Net Book Value Averages per Property Market Unit
Slide 28: 2013 Acquisition, Renovation and Leasing Rates
29 2013 Acquisition, Renovation and Leasing Rates
Slide 29: Funds From Operations Reconciliation
30 Funds From Operations Reconciliation The following is a reconciliation of net loss attributable to common shareholders to FFO for three months ended September 30, 2013 (amounts in thousands, except share and per share information): We calculate FFO in accordance with the White Paper on FFO approv
Slide 30: Net Operating Income Reconciliation
31 Net Operating Income Reconciliation The following is a reconciliation of NOI to net income / (loss) as determined in accordance with GAAP (amounts in thousands): NOI is a supplemental non-GAAP financial measure that AMH defines as rents from single-family properties, less property operating expen
Slide 31: [LOGO]
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