American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (November 2017)
23 slides from American Homes 4 Rent's investor presentation, Nov 13, 2017
Slide 1: Investor Highlights November 2017
Investor HighlightsInvestor Highlights November 2017
Slide 2: Forward-Looking Statements
2 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 projections and e
Slide 3: Table of Contents
3 AMH At A Glance ……………………………………………………….................. 4 AMH Strategy …………………………………………………………..................... 5 Single-family Rental Sector: Compelling Macro Landscape …... 6 Growth Strategy - How & Where We Invest ……………................... • Foreclosure Auction/MLS • Built for Rental
Slide 4: AMH At A Glance
4 AMH At A Glance 50,015 high-quality properties in 22 states (1) Only Investment Grade Rated balance sheet in SFR sector 95.3% Same-Home October 2017 ending leased percentage (3) 8.3% TTM avg. Same Home NOI after Capex growth (2) ~ $220 million of expected annual retained cash flow (1) As of or for
Slide 5: The AMH Strategy
5 The AMH Strategy OPERATIONS STRATEGY • Optimize AMH’s differentiated operating platform • Balance centralized control and oversight, with local office touch • Enhance operating efficiencies with innovative and proprietary technology solutions • Management and execution of all stages of operational
Slide 6: Single-Family Rental Sector: Compelling Macro Landscape
6 Owner Occupied 55% / ~ 75.7M units Apartments & Other Rentals 31% / ~ 43.1M units Total Housing Stock (2) Substantial Growth In Renter Household Demand (2)Household Formations Outpace Housing Supply (1) 36% 59% 69% 75% 79% 30% 40% 50% 60% 70% 80% 90% 2000 2002 2004 2006 2008 2010 2012 2014 2016 Un
Slide 7: Foreclosure Auction / MLS Program Overview
7 Program Overview • Fully internalized acquisition program – AMH personnel underwrite and inspect all homes acquired through foreclosure auction & MLS • Operational insights from internal property management help to “sharp shoot” optimal target properties • National renovation program generates sub
Slide 8: Built for Rental Program Overview
8 Program Overview • National Builder Program • Acquiring newly constructed “built for rental” homes from growing national network of 3rd party homebuilders • AMH typically acquiring 10-20% of homes in newly constructed for-sale communities • AMH Development • Recently launched internal development
Slide 9: Bulk/Portfolio Opportunities Program Overview
9 1 Property 55% > 250 Properties 2% 51 - 250 Properties 2% 11 – 50 Properties 7% 2 – 10 Properties 34% Program Overview • Robust consolidation opportunity provided by fragmented asset class • Over 30,000 owners of 11-50 property portfolios • Over 2,000 owners of 51-250 property portfolios Program B
Slide 10: Where We Invest
10 Where We Invest Notes: - Total properties percentage based on counts as of September 30, 2017. - Rental rate growth for full year 2016 for all AMH markets represents actual new lease rental rate spreads as reported by the Company. Sources: (1) Bureau of Labor Statistics July 2017; (2) JBREC Singl
Slide 11: The AMH Operating Approach
11 The AMH Operating Approach Centralized Support • Call centers • Tenant U/W • Lease execution • Rental pricing • Maintenance oversight Boots on The Ground • Leasing agents • Property managers • Maintenance technicians Field Management • Local district office • Regional & district managers Centrali
Slide 12: Strong Financial Results
12 Strong Financial Results Same-Home: Revenue Growth & Expense Controls (1) Best-In-Class Platform Efficiency M o r e e f f i c i e n t $2,084 $2,034 $1,967 $1,977 $1,967 $150 $155 $160 $165 3Q16 4Q16 1Q17 2Q17 3Q17 Total Core Revenues Annual Maintenance Expenditures per property (1) 12.3% 11.4% 9.
Slide 13: Capital Structure
13 Capital Structure Debt Maturity Schedule (2) (Figures in millions, except per share amounts) 12/31/2016 (In thousands, except share and per share amounts) Note: Refer to Defined Terms and Non-GAAP Reconciliations in the Appendix, as well as the 3Q17 Supplemental Information Package, for definitio
Slide 14: Strong Same-Home Performance
14 Strong Same-Home Performance Operating Highlights 3Q16 4Q16 1Q17 2Q17 3Q17 Number of Same‐Home properties 36,682 36,682 36,682 36,682 36,682 Rents from single‐family properties $ 154,610 $ 155,925 $ 156,672 $ 158,278 $ 158,491 Fees from single‐family properties 2,228 1,791 1,885 1,964 2,099 Bad d
Slide 15: Industry Leading Efficiency Metrics
15 Industry Leading Efficiency Metrics (Dollars in thousands) 3Q16 4Q16 1Q17 2Q17 3Q17 Adjusted EBITDA Margins Total revenues, excluding tenant charge‐backs $ 205,249 $ 204,382 $ 205,381 $ 209,626 $ 210,742 Property operating expenses, net ( 63,116) ( 56,562) ( 56,393) ( 59,715) (63,110) Property ma
Slide 16: Defined Terms: Core NOI and Same-Home Core NOI
16 Highligh ts (1 ) Defined Terms and Non-GAAP Reconciliations Core Net Operating Income ("Core NOI") and Same-Home Core NOI After Capital Expenditures Core NOI, which we also present separately for our Same-Home portfolio, is a supplemental non-GAAP financial measure that we define as core revenues
Slide 17: Reconciliation of Core Revenues and Core NOI to GAAP
17 (1 ) The following are reconciliations of core revenues, core property operating expenses, Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures to their respective GAAP metrics for the trailing five quarters (amounts in thousands): Sep 30, 2016 Dec 31, 2016 Mar 31, 2017
Slide 18: Net Income to Core NOI Reconciliation
18 Highligh ts (1 ) Sep 30, 2016 Dec 31, 2016 Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Net (loss) income (167)$ 9,338$ 11,796$ 15,066$ 19,097$ Remeasurement of participating preferred shares 2,490 4,080 5,410 1,640 (8,391) Loss on early extinguishment of debt 13,408 ‐ ‐ 6,555 ‐ Hurricane‐related charg
Slide 19: EBITDA and Adjusted EBITDA Definitions
19 EBITDA / Adjusted EBITDA / Adjusted EBITDA after Capex and Leasing Costs / Adjusted EBITDA Margin / Adjusted EBITDA after Capex and Leasing Costs Margin EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure and is used by us an
Slide 20: EBITDA and Adjusted EBITDA Reconciliation
20 Sep 30, 2016 Dec 31, 2016 Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Net (loss) income (167)$ 9,338$ 11,796$ 15,066$ 19,097$ Interest expense 32,851 31,538 31,889 28,392 26,592 Depreciation and amortization 75,392 74,164 73,953 72,716 74,790 EBITDA 108,076 115,040 117,638 116,174 120,479 Noncash shar
Slide 21: Platform Efficiency Percentage
21 Platform Efficiency Percentage Management costs, including (1) property management expenses, net of tenant charge-backs and excluding noncash share-based compensation expense, (2) general and administrative expense, excluding noncash share-based compensation expense and (3) leasing costs, as a pe
Slide 22: Credit Metrics
22 Credit Metrics 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 estate companies. The tables below reco
Slide 23: Net Debt to Adjusted EBITDA and Unencumbered Core NOI
23 Sep 30, 2017 Total Debt 2,382,871$ Less: cash and cash equivalents (243,547) Less: asset‐backed securitization certificates (25,666) Less: restricted cash related to securitizations (46,166) Net debt 2,067,492$ Adjusted EBITDA TTM 496,105 Net Debt to TTM Adjusted EBITDA 4.2 x For the Three Months
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