American Homes 4 Rent · NYSE:AMH
American Homes 4 Rent — Investor Presentation (January 2014)
29 slides from American Homes 4 Rent's investor presentation, Jan 7, 2014
Slide 1: American Homes 4 Rent January 2014
AMERICAN J omes|E4A ia January 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 es tate investment trust, and its subsidiaries taken as a whole. “AH LLC” or “our founders” refer to American Homes 4 Rent, LLC, a Del aware limited liability co
Slide 3: Overview of American Homes 4 Rent
Overview of American Homes 4 Rent 3
Slide 4: Portfolio and Diversification
4 Portfolio and Diversification x $ 3 . 5 billion portfolio with 21 , 267 homes as of September 30 , 2013 x Properties in 22 states / 42 markets Balance Sheet x Strong balance sheet with conservative approach to leverage x $3.5 billion in equity capital as of September 30, 2013 Access to Capital x I
Slide 5: Business Strengths
Business Strengths Tenant Driven Business x AMH targets properties that fit an ideal tenant profile x Traditional middle class neighborhoods in growing markets x Minimum 3 bedrooms, 2 bathrooms, two car garage x Newer properties in attractive neighborhoods Significant Scale Advantage x Well develope
Slide 6: Investment Philosophy
6 Investment Philosophy Focus on Tenant x Value created by finding the right tenant x Target tenants are families with children as this creates ties to the property given proximity to strong schools x S tronger schools are generally in newer neighborhoods x Long term price appreciation x Tenants lik
Slide 7: Premier Brand and Long-Term Strategy
7 Premier Brand and Long - Term Strategy Mission To build a brand synonymous with quality homes + professional customer service Goal To become the most preferred brand in each market in which we operate, and establish strong relationships with tenants, local communities and HOAs Results To achieve p
Slide 8: Strong Demand for Single Family Rentals Will Create Opportunity for Rental Rate Growth
20 25 30 35 40 45 60% 62% 64% 66% 68% 70% 1980 1985 1990 1995 2000 2005 2010 2015 Renter households (mm) Homeownership rate (%) Additional 2.2mm prospective tenants by 2015 63% projected by 2015 8 Strong Demand for Single Family Rentals Will Create Opportunity for Rental Rate Growth U.S. Shift to Re
Slide 9: Single Family Has Similar Characteristics to Multi-Family in its Early Stages
$10.8 $73.0 $5.1 1994 2013 2013 1994 2013 $420 $8,791 $277 $1,633 1994 2013 7 Largest REITs 7 Smallest REITs 9 Single Family Has Similar Characteristics to Multi - Family in its Early Stages Size of Public Sector 1 Number of Public Players Average Size of Multi - Family REIT 1 x Fragmented ownership
Slide 10: Company History and Senior Management
Company History and Senior Management 10
Slide 11: History of American Homes 4 Rent
History of American Homes 4 Rent Sep 2013 and Q4 21,267 (1) Announced engagement of advisors in structuring and negotiating AMH’s first single family rental securitization AMH completes two preferred stock offerings with aggregate proceeds in excess of $225 million Aug 2013 19,825 Completion of $ 88
Slide 12: Leadership Team with Proven History of Success
12 Leadership Team with Proven History of Success B. Wayne Hughes David Singelyn Jack Corrigan Peter Nelson Founder & Chairman Chief Executive Officer Chief Operating Officer Chief Financial Officer Real Estate Experience 40+ years 25 years 25 years 27 years History with Public Storage x x x x AMH T
Slide 13: Operations
Operations 13
Slide 14: National High Quality Portfolio in Attractive Markets
14 National High Quality Portfolio in Attractive Markets (1) As of September 30, 2013 (2) Based on number of properties as of September 30, 2013 SC TN WA OR CA NV UT CO AZ TX IL IN OH GA FL SC TN NC KY Corporate headquarters Property management offices AMH state presence OK WI ID NM MS ▪ 21,267 home
Slide 15: Fully Integrated Team and Process
15 Fully Integrated Team and Process Administration and Executive Management (49 personnel) • Execute market, sub - market and property screening and underwriting process • Dedicated to acquiring homes at trustee auctions or MLS listings • Responsible for taking possession of recently acquired homes
Slide 16: Acquisitions and Renovations
Acquisitions and Renovations 16
Slide 17: How New Markets are Evaluated
17 How New Markets are Evaluated Identifying Attractive Target Markets Auction / Trustee Broker Other / Bulk Purchases Acquisition Channels Source: Company Information Rental Rate Growth High Occupancy Higher Quality Tenant Lower Turnover Costs Inflation Hedge / Protection / Participation Above Aver
Slide 18: Proven Acquisition Platform
546 1,191 2,591 4,014 4,155 5,731 2,937 Q1 Q2 Q3 Q4 Q1 Q2 Q3 MLS Auctions 18 Proven Acquisition Platform Screened Approximately 50,000 Homes Examined Physical Criteria of Homes; Inspected Title & Research HOA Underwrite 35% of Homes Screened Placed Bids on ~25% of Homes Underwritten Purchased 600 -
Slide 19: Focus on High Quality Submarkets and Homes Through Disciplined Underwriting
19 Focus on High Quality Submarkets and Homes Through Disciplined Underwriting ▪ Supply of quality assets ▪ Family oriented areas and homes ▪ Safe neighborhoods ▪ Favorable employment trends ▪ Above average population growth ▪ Discount to replacement cost for new construction San Antonio, TX 1 Subma
Slide 20: Renovation
20 Renovation Standardized Renovation Process Homes 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 for nationwide contracts ▪ Enab
Slide 21: Leasing & Property Management
Leasing & Property Management 21
Slide 22: Successful Marketing and Leasing Process
Leased Vacant Leased Vacant 22 Successful Marketing and Leasing Process Tenant Underwriting Percentage Leased as of September 30, 2013 Rent - Ready for 30 days Rent - Ready for 90 days 10.4% 89.6% 3.8 % 96.2% Leasing Channels Leases Signed per Quarter ▪ Annual Income ▪ Rental History ▪ Credit Histor
Slide 23: Best in Class Processes Expedite Leasing
23 Best in Class Processes Expedite Leasing Property Marketing • Renovation team transitions homes to marketing group when ready for lease - up • Marketing group coordinates pictures, writes description and posts to website • Property is uploaded to AMH’s site, Craigslist, Zillow and MLS • National
Slide 24: Internal Leasing Advantage Case Study
24 Internal Leasing Advantage Case Study – Internal Transition of the Carolinas Internalization Highlights ▪ Internalized six markets ▪ Raleigh/Durham – June ▪ Winston Salem/Greensboro – July ▪ Charlotte – end of July ▪ Greenville & Columbia – September ▪ Increased # of leases signed per month from
Slide 25: Reliable and Trusted Property Management
Reliable and Trusted Property Management 25 Benefits of In - House P roperty Management In - House Property Management Capabilities • Increase velocity of executing leases and reduce level of inventory • Enhance control over rents and ability to maximize rental growth • Economies of scale • Quality
Slide 26: Strong Property Management Ensures Tenant Satisfaction and Continuing Asset Quality
26 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 def
Slide 27: Technology and Systems
Technology and Systems 27
Slide 28: Integrated Technology Platform
; Live data customer statistics enables AMH to better understand tenant needs ; Marketing analytics leads to better pricing model ; Real time communication with personnel in the field ; Online automatic payments ; Residential property accounting functions handle security deposits and property - leve
Slide 29: omes |Fa wa
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