American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (June 2015)
22 slides from American Homes 4 Rent's investor presentation, Jun 8, 2015
Slide 1: 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. “AH LLC”
Slide 2: American Homes 4 Rent (AMH) Highlights
American Homes 4 Rent (AMH) Highlights 2 Objectives Scale Company had 37,300 properties in 22 states, as of May 31, 2015 Provides cost efficiencies and access to capital Platform Company is fully internally managed – acquisition, administration and property management Cash Flow Objective for 2015 is
Slide 3: SFR Industry Overview
SFR Industry Overview
Slide 4: 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 show str
Slide 5: 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) Federal Reserve Bank of St. Louis Economic Data and U.S. Census Bu
Slide 6: Institutional SFR Overview
Institutional SFR Overview
Slide 7: Overview of Institutional SFR Landscape
Overview of Institutional SFR Landscape SFR sector is poised for consolidation as larger players benefit from cost of capital advantages and smaller investors face difficulty achieving scale AMH is the largest public player in the SFR sector and is larger than all other public peers combined SFR Sec
Slide 8: Evolution of Public SFR REITs
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 approximately $12 billion SBY IPO Dec-12 $245mm ARPI IPO Mar-13 $288mm AMH IPO Aug-13 $887mm SWAY Spinoff Oct-13 Enterprise Value (in billion
Slide 9: 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 $ 0.9 bn $ 2.7 bn Equity market cap (1) $ 4.8 bn $ 0.6 bn $ 0.6 bn $ 1.0 bn Number of properti
Slide 10: aay Mey | le
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Slide 11: Large, Diversified Portfolio
Large, Diversified Portfolio 36,588 high quality homes as of March 31, 2015 (37,300 as of May 31, 2015) 85.2% total portfolio leased percentage as of March 31, 2015 (90% as of May 31, 2015) Properties in 22 states / 41 markets Scale Largest public SFR REIT with strong reputation as industry consolid
Slide 12: Key Milestones Achieved to Date
Key Milestones Achieved to Date Operational Achievements Equity Capital Raises Debt Capital Raises JV Capital Strategic M&A Activity 37,300 homes Fully-internalized in-market property management Centralized leasing, customer service and maintenance call centers Consistent in-house technology advance
Slide 13: 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 rental de
Slide 14: First Quarter 2015 Operational Update
First Quarter 2015 Operational Update Quarterly Leasing, Core Revenues and Core NOI Increases Q1 2015 Overview As of Mar-15: Properties owned: 36,588 Portfolio leased percentage: 85.2% Portfolio occupancy percentage: 82.5% Stabilized leased percentage: 93.4% Stabilized occupancy percentage: 90.4% As
Slide 15: First Quarter 2015 Performance Highlights
First Quarter 2015 Performance Highlights Same-Home Results Q1 2015 Highlights Three Months Ended Mar-15 Mar-14 % Change Number of Same-Home properties 13,446 13,446 Leased percentage as of period end 94.8% 94.6% Occupancy percentage as of period end 93.1% 94.5% Average leased percentage 93.9% 95.1%
Slide 16: AMH – Best in Class Operations
AMH – Best in Class Operations
Slide 17: 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 / executed by AMH per
Slide 18: Marketing and Leasing – Stabilizing Occupancy & Optimizing Rents
Marketing and Leasing – Stabilizing Occupancy & Optimizing Rents Leasing Channels National Call Center – Provides Control & Scalability Tenant Underwriting Leasing Volume “Let Yourself In” Showings AH4R Website Multiple Listing Service Average Household Rental history Credit history Criminal records
Slide 19: 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 personnel.
Slide 20: NOI and Core NOI Reconciliation
NOI and Core NOI Reconciliation 20 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 financial measure
Slide 21: FFO and Core FFO Reconciliation
FFO and Core FFO Reconciliation 21 FFO is a non-GAAP financial measure that we calculate in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income or loss calculated in accorda
Slide 22: [LOGO]
[LOGO]
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