American Homes 4 Rent (NYSE:AMH) Q1 2025 Earnings Conference Call May 2, 2025 12:00 PM ET Company Participants Nicholas Fromm - Director of IR Bryan Smith - CEO Chris Lau - CFO Lincoln Palmer - COO Conference Call Participants Jamie Feldman - Wells Fargo Steve Sakwa - Evercore ISI Haendel St. Juste - Mizuho Securities Nick Joseph - Citi Adam Kramer - Morgan Stanley Jeff Spector - Bank of America Rich Hightower - Barclays David Segall - Green Street Brad Heffern - RBC Capital Markets Daniel Tricarico - Scoti ...

Financial Performance - Net income attributable to common shareholders was $109,972 thousand for Q1 2025, compared to $109,289 thousand in Q1 2024, showing a slight increase of 0.6%[31] - Comprehensive income attributable to common shareholders was $108,306 thousand for Q1 2025, compared to $109,167 thousand in Q1 2024, indicating a decrease of approximately 0.8%[34] - Net income for the three months ended March 31, 2025, was $128,713,000, compared to $128,095,000 for the same period in 2024, reflecting a slight increase[41] - Net income attributable to common unitholders for Q1 2025 was $125.227 million, slightly up from $124.609 million in Q1 2024, indicating a growth of 0.5%[48] - The Company reported net income of $128,713,000 for the three months ended March 31, 2025, slightly up from $128,095,000 in 2024, indicating a year-over-year increase of 0.5%[117] Revenue and Expenses - Rental and other single-family property revenues increased to $459,276 thousand for the three months ended March 31, 2025, up from $423,555 thousand in the same period of 2024, reflecting a growth of about 8.4%[31] - Total expenses for the same period were $394.797 million, compared to $366.841 million in 2024, reflecting an increase of about 7.6%[48] - Property operating expenses increased to $167,530 thousand in Q1 2025, up from $155,927 thousand in Q1 2024, representing an increase of about 7.5%[31] - Interest expense rose to $45,426 thousand for Q1 2025, compared to $38,577 thousand in Q1 2024, reflecting an increase of approximately 17.5%[31] - Total property operating expenses for the three months ended March 31, 2025, were $167.5 million, compared to $155.9 million for the same period in 2024, indicating an increase of about 7.4%[135] Assets and Liabilities - Total assets decreased to $13,289,223 thousand as of March 31, 2025, from $13,381,151 thousand at December 31, 2024, representing a decline of approximately 0.7%[28] - Total liabilities decreased to $5,447,112 thousand as of March 31, 2025, from $5,532,521 thousand at December 31, 2024, a reduction of approximately 1.5%[28] - Total shareholders' equity slightly decreased to $7,153,889 thousand as of March 31, 2025, from $7,160,016 thousand at December 31, 2024, a decline of approximately 0.1%[28] - The Company’s total capital as of March 31, 2025, was $7,842,111,000, compared to $7,848,630,000 as of December 31, 2024[46] - The Company’s total debt as of March 31, 2025, is $4.989 billion, down from $5.075 billion as of December 31, 2024[91] Cash Flow - Cash provided by operating activities for the three months ended March 31, 2025, was $223,403,000, an increase from $201,780,000 in the same period of 2024[41] - Cash used for investing activities was $107,689,000 for the three months ended March 31, 2025, compared to $68,146,000 for the same period in 2024[41] - Cash and cash equivalents significantly decreased to $69,698 thousand as of March 31, 2025, down from $199,413 thousand at December 31, 2024, a decline of about 65%[28] - Cash payments for interest, net of amounts capitalized, were $(68,249,000) for the three months ended March 31, 2025, compared to $(38,389,000) in 2024[43] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $218.858 million, down from $283.291 million at the end of Q1 2024, a decrease of about 22.8%[59] Property Management - The company held 61,361 single-family properties across 24 states as of March 31, 2025, including 661 properties classified as held for sale[64] - The average occupancy rate across all markets is 94.8%, with an average realized rent per property of $2,255[144] - The average monthly rent realized in the Atlanta market is $2,292, with an occupancy rate of 94.7%[144] - The average blended change in rent for the company is 3.7% for the three months ended March 31, 2025[144] - The company incurs costs between $300,000 and $450,000 to acquire and develop land and build a rental home[154] Shareholder Distributions - The Company declared distributions of $0.30 per Class A and Class B common share for the three months ended March 31, 2025, compared to $0.26 for the same period in 2024, representing a 15.4% increase[106] - The Company distributed an aggregate of $131.2 million to shareholders during the three months ended March 31, 2025, compared to $112.7 million in the same period of 2024, representing a 16.5% increase[205] Joint Ventures and Investments - The Company held 20% ownership interests in four unconsolidated joint ventures as of March 31, 2025[83] - The Company has joint ventures with various institutional investors, including a 20% ownership in the Alaska JV with 166 completed homes and investments totaling $14.655 million as of March 31, 2025[85] - The Institutional Investor JV has an outstanding loan of $232.7 million with a maturity date of July 1, 2027, and an interest rate of SOFR plus 1.90%[87] - J.P. Morgan JV I increased its borrowing capacity to $500 million, with an outstanding principal balance of $358.2 million as of March 31, 2025, maturing on January 24, 2028[88] Market Conditions - The company has strategically scaled back acquisitions as the housing market adjusts to the current macroeconomic environment[151] - The average time to lease a property after acquisition is approximately 10 to 50 days for new constructions and 20 to 40 days for traditionally acquired properties[156] Internal Controls and Compliance - The Company maintains effective disclosure controls and procedures, ensuring timely reporting in accordance with SEC guidelines[220] - Management evaluated the effectiveness of disclosure controls and concluded they were effective at a reasonable assurance level[221] - There were no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2025, that materially affected its controls[222]

Financial Data and Key Metrics Changes - The company reported a core FFO per share of $0.46 for Q1 2025, reflecting a year-over-year growth of 6.6% [7][15] - Net income attributable to common shareholders was $110 million, or $0.30 per diluted share [15] - Same home core revenue growth was 4.3% for the quarter, with core operating expense growth at 4.2%, leading to same home core NOI growth of 4.4% [10][11] Business Line Data and Key Metrics Changes - Same home average occupied days improved to 95.9%, with new lease spreads accelerating to 3.9% in April [10][12] - Renewal and blended rental rate spreads were 4.4% and 3.6% respectively [10] - The company delivered 545 homes during the quarter, with 424 homes delivered to the wholly owned portfolio at an investment cost of approximately $173 million [15][16] Market Data and Key Metrics Changes - The Midwest markets showed strong performance with new lease spreads reaching almost 9% in April, up from 5.8% in Q1 [22] - The company noted a persistent supply-demand imbalance in the U.S. housing market, with millions of quality homes still needed [8][9] - The company was recognized as the 37th largest homebuilder in the U.S., up from 39th last year [9] Company Strategy and Development Direction - The company aims to align lease expirations with peak leasing season demand through a lease expiration management initiative [11][32] - The focus remains on high-quality, well-located homes, with a commitment to maintaining a strong resident experience [9][10] - The company plans to continue its disposition program while remaining patient for attractive acquisition opportunities [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the housing sector despite recent market uncertainties [7][8] - The company maintains its 2025 guidance unchanged, citing healthy demand and strong leasing activity [18] - Management highlighted the importance of the housing necessity and the ongoing need for high-quality rental options [18] Other Important Information - The company’s net debt to adjusted EBITDA ratio was 5.3 times at the end of the quarter, with approximately $70 million in cash available [16] - S&P Global revised the company's credit rating to a positive outlook, reflecting improved balance sheet management [17] Q&A Session Summary Question: Strength in Midwest markets and future growth - Management noted strong performance in the Midwest, with new lease spreads accelerating significantly, driven by quality of life and affordability [22][23] Question: Competition in North Florida and Texas - Management acknowledged increased competition but believes it may be temporary, with signs of improved occupancy in those markets [28] Question: Adjustments to leasing strategy - Management confirmed proactive adjustments to leasing strategies, including revenue optimization initiatives [31][32] Question: Impact of tariffs on development costs - Management estimated a 2% to 3% impact from tariffs on development costs, with labor being a significant portion of overall costs [35][39] Question: Differences in performance between developed and scattered site homes - Management indicated consistent performance across both types, with expectations for improved retention as communities stabilize [102][103]

Financial Data and Key Metrics Changes - The company reported a core FFO per share of $0.46 for Q1 2025, representing a year-over-year growth of 6.6% [5][14] - Net income attributable to common shareholders was $110 million, or $0.30 per diluted share [14] - Same home core revenue growth was 4.3% for the quarter, with same home average occupied days strengthening to 95.9% [9][10] Business Line Data and Key Metrics Changes - Core operating expense growth was 4.2%, leading to same home core NOI growth of 4.4% for the quarter [10] - New lease spreads accelerated to 3.9% in April, with renewal and blended leasing spreads at 4.4% and 3.6% respectively [11] - The company successfully delivered 545 homes during the quarter, with 424 homes delivered to the wholly owned portfolio at an investment cost of approximately $173 million [15] Market Data and Key Metrics Changes - The Midwest markets showed strong performance, with new lease spreads nearly reaching 9% in April, up from 5.8% in Q1 [21] - The company was recognized as the 37th largest homebuilder in the U.S., up from 39th last year, indicating a growing market presence [7] - The company noted a persistent supply and demand imbalance in the U.S. housing market, with millions of quality homes still needed [6] Company Strategy and Development Direction - The company remains focused on high-quality markets and geographic diversification, with a strategic emphasis on resident experience [8][18] - The development program is expected to yield mid 5% returns as the company moves through the peak leasing season [12] - The company is maintaining a disciplined approach to acquisitions and dispositions, remaining patient for attractive opportunities [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the housing sector despite recent market uncertainties [5] - The company anticipates continued demand for high-quality rental homes, particularly as millennials enter household formation years [6][18] - Management has left the 2025 guidance unchanged, citing the need to remain cautious amid evolving economic conditions [17] Other Important Information - The company’s credit rating was revised to a positive outlook by S&P Global, reflecting improved balance sheet management [16] - The company has approximately $70 million in cash available and a $410 million drawn balance on its revolving credit facility [15] Q&A Session Summary Question: Strength in Midwest markets and future growth - Management noted that the Midwest markets are performing well, with new lease spreads showing significant acceleration, driven by quality of life and affordability [21][22] - The company is actively looking to expand its land bank in the Midwest, particularly in Columbus and Indianapolis [24] Question: Competition in North Florida and Texas - Management acknowledged increased competition from public builders but believes the impact will be temporary, with signs of improved occupancy in affected markets [28] Question: Adjustments to leasing strategy - Management confirmed that they have made changes to their leasing strategy, particularly through lease expiration management initiatives to align with peak demand [31] Question: Impact of tariffs on pricing - Management estimates a 2% to 3% impact from tariffs on development costs, with most pricing already locked in for 2025 [34][35] Question: Differences in demographics between development and scattered site homes - Management reported consistency in the demographic profiles of residents in both types of homes, with no significant differences in rent growth or turnover [54][105] Question: Guidance and economic outlook - Management remains cautious about the economic environment but has not seen signs of weakening demand or consumer behavior as of April [48][59]

For the quarter ended March 2025, American Homes 4 Rent (AMH) reported revenue of $459.28 million, up 8.4% over the same period last year. EPS came in at $0.46, compared to $0.30 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $441.83 million, representing a surprise of +3.95%. The company delivered an EPS surprise of +2.22%, with the consensus EPS estimate being $0.45.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

American Homes 4 Rent (AMH) came out with quarterly funds from operations (FFO) of $0.46 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to FFO of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 2.22%. A quarter ago, it was expected that this real estate company would post FFO of $0.45 per share when it actually produced FFO of $0.45, delivering no surprise.Over the last four quarters, the co ...

AMH Table of Contents | Summary | | | --- | --- | | Earnings Press Release | 3 | | Select Non-GAAP Reconciliations – Core Net Operating Income | 7 | | Fact Sheet | 9 | | Financial Information | | | Condensed Consolidated Statements of Operations | 10 | | Funds from Operations | 11 | | Core Net Operating Income – Total Portfolio | 12 | | Same-Home Results | 13 | | Condensed Consolidated Balance Sheets | 16 | | Debt Summary | 17 | | Capital Structure and Credit Metrics | 18 | | Property and Other Information ...

Delivered Strong First Quarter with Accelerating Monthly Occupancy and Rate GrowthLAS VEGAS, May 1, 2025 /PRNewswire/ -- AMH (NYSE: AMH) (the "Company"), a leading large-scale integrated owner, operator and developer of single-family rental homes, today announced its financial and operating results for the quarter ended March 31, 2025.Highlights Rents and other single-family property revenues increased 8.4% year-over-year to $459.3 million for the first quarter of 2025. Net income attributable to common sha ...

Group 1 - The article discusses a temporary 90-day pause on tariffs by the Arsonist/Firefighter-in-Chief, indicating a de-escalation in the ongoing trade war [1] - The situation was described as critical, suggesting that the world narrowly avoided a significant economic setback [1] Group 2 - The article promotes a 2-week free trial for access to a real estate investment community, highlighting its size and positive ratings [2]

Core Insights - The article emphasizes the importance of not only location but also supply and demand dynamics in the real estate market, particularly in Tampa [1][12][24] Group 1: Tampa's Real Estate Market Dynamics - Tampa is experiencing strong job and population growth, with its population expected to rise from 21,538,192 in April 2020 to 23,372,215 by July 2024, reflecting a growth rate of approximately 8.5% [3] - The population in Tampa is projected to grow by an additional 5.7% by 2030, indicating continued demand for real estate [3] - Household income in Tampa is expected to increase by 12.13%, providing a solid foundation for various types of real estate [5] Group 2: Supply and Demand Analysis - The Tampa housing market has seen a significant increase in supply, with active home listings rising by 33% compared to January 2024, leading to downward pressure on home prices [9][8] - In contrast, the retail real estate sector in Tampa has experienced limited new supply, with new retail completions consistently below 1% of existing inventory, resulting in a retail vacancy rate of about 3% [10][11] - The disparity in supply dynamics has led to a landlord-favored market in retail, with asking rents increasing from below $15 per square foot to nearly $25 per square foot over the past decade [11] Group 3: Investment Recommendations - The article suggests focusing on investing in Tampa shopping centers due to the favorable supply-demand dynamics, while advising against investing in single-family homes due to oversupply [15][14] - Specific REITs such as Kimco Realty Corporation, Brixmor Property Group Inc., and Kite Realty Group Trust are highlighted as well-positioned for investment in Tampa's retail sector [16] - Conversely, companies like Invitation Homes Inc. and American Homes 4 Rent are noted as less attractive investment options in the single-family home market due to their higher valuations [19][18]