Core Viewpoint - 2025 has been challenging for residential REITs, with American Homes 4 Rent (AMH) experiencing a 17% decline in shares year-to-date, contrasting with the broader market's steady increase [1] Group 1: Company Performance - AMH shares have decreased by 17% in 2025, indicating underperformance relative to the broader market [1] Group 2: Market Context - The broader market has shown a steady increase, highlighting a divergence between AMH's performance and overall market trends [1]

Core Insights - 2025 has been challenging for residential REITs, with American Homes 4 Rent (AMH) experiencing a 17% decline in shares year-to-date, contrasting with a steady increase in the broader market [1] Company Performance - AMH shares have decreased by 17% in 2025, indicating underperformance relative to the overall market trends [1] Market Context - The broader market has shown a steady increase, highlighting a divergence between AMH's performance and that of the general market [1]

Group 1 - The company has received over 500 five-star reviews from satisfied members, indicating strong customer satisfaction and perceived value [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - New members can gain immediate access to the latest top investment picks and receive a discount of $100 upon joining [2] Group 2 - Jussi Askola, the President of Leonberg Capital, is a recognized expert in REIT investing, having authored award-winning academic papers and passed all three CFA exams [3] - Leonberg Capital provides consulting services to hedge funds, family offices, and private equity firms, focusing on value-oriented investment strategies [3] - The investing group High Yield Landlord, led by Jussi Askola, offers features such as multiple portfolios, buy/sell alerts, and direct access to analysts for real-time investment insights [3]

Financial Performance - For the three months ended September 30, 2025, rental and other single-family property revenues increased to $478,464,000, up 7.0% from $445,055,000 in the same period of 2024[31]. - Net income for the three months ended September 30, 2025, was $116,801,000, representing a 33.3% increase compared to $87,640,000 for the same period in 2024[31]. - Net income attributable to common shareholders for the nine months ended September 30, 2025, was $315,222,000, an increase of 14.5% from $275,252,000 for the same period in 2024[31]. - The company reported a basic net income per share of $0.27 for the three months ended September 30, 2025, compared to $0.20 for the same period in 2024[31]. - Net income for the nine months ended September 30, 2025, was $369,138, compared to $324,269 for the same period in 2024, representing a year-over-year increase of approximately 13.9%[46]. - Net income for the three months ended September 30, 2025, was $116.801 million, representing a 33.4% increase from $87.640 million in the same quarter of 2024[53]. - The company reported a net income attributable to common unitholders of $113.315 million for Q3 2025, up from $84.154 million in Q3 2024, reflecting a growth of 34.6%[53]. - For the nine months ended September 30, 2025, net income was $369,138,000, compared to $324,269,000 for the same period in 2024, indicating a growth of 13.8%[125]. Assets and Liabilities - Total assets as of September 30, 2025, were $13,253,466,000, a decrease from $13,381,151,000 as of December 31, 2024[28]. - Total liabilities decreased to $5,415,499,000 as of September 30, 2025, from $5,532,521,000 as of December 31, 2024[28]. - Total shareholders' equity remained relatively stable at $7,161,264,000 as of September 30, 2025, compared to $7,160,016,000 as of December 31, 2024[28]. - Total debt as of September 30, 2025, was $4.910 billion, a decrease from $5.075 billion as of December 31, 2024[95]. - The Company’s total debt per balance sheet, after accounting for unamortized discounts and deferred financing costs, was $4.843 billion as of September 30, 2025[95]. Cash Flow and Investments - Cash and cash equivalents decreased significantly to $45,631,000 as of September 30, 2025, from $199,413,000 as of December 31, 2024[28]. - Net cash provided by operating activities was $718,515 for the nine months ended September 30, 2025, compared to $709,348 in 2024, indicating a slight increase of 1.8%[46]. - Net cash used for investing activities was $280,631 for the nine months ended September 30, 2025, compared to $293,048 in 2024, showing a decrease of about 4.2%[46]. - Cash, cash equivalents, and restricted cash at the end of the period were $175,735 as of September 30, 2025, down from $317,849 in 2024, indicating a decrease of about 44.5%[46]. - Net cash used for financing activities was $612,365 for the nine months ended September 30, 2025, compared to $320,312 in 2024, reflecting a significant increase of 91.1%[63]. Revenue and Expenses - The company incurred total expenses of $414,007,000 for the three months ended September 30, 2025, compared to $393,062,000 for the same period in 2024, reflecting a 5.3% increase[31]. - Depreciation and amortization expenses increased to $378,523 for the nine months ended September 30, 2025, from $353,020 in 2024, reflecting a rise of about 7.2%[46]. - Property operating expenses increased by 5.6% to $181.6 million for the three months ended September 30, 2025, from $172.0 million in 2024[187]. - Interest expense rose by 10.5% to $48.2 million for the three months ended September 30, 2025, compared to $43.6 million in 2024[192]. - General and administrative expenses increased to $20.5 million for the three months ended September 30, 2025, up from $19.2 million in 2024[191]. Property Management and Operations - The company held 61,692 single-family properties across 24 states as of September 30, 2025, including 1,028 properties classified as held for sale[67]. - Total occupancy rate across properties was 95.2% as of September 30, 2025, with an average realized rent of $2,306[155]. - Average Monthly Realized Rent per property increased by 3.5% year-over-year for Q3 2025, with a turnover rate of 7.3%[171]. - The company developed or acquired 587 homes in Q3 2025, including 539 newly constructed homes through the AMH Development Program[163]. - The company identified 1,028 properties held for sale as of September 30, 2025, compared to 805 properties at the end of 2024[165]. Shareholder Information - The Company declared a distribution of $0.30 per Class A and Class B common share for Q3 2025, compared to $0.26 in Q3 2024[112]. - The total noncash share-based compensation expense for the nine months ended September 30, 2025, was $20.4 million, down from $26.2 million in the same period of 2024[124]. - The Company has a 2021 Employee Stock Purchase Plan allowing for the issuance of up to 3,000,000 Class A common shares, set to terminate in June 2031[123]. - The share repurchase program has an authorization of up to $265.1 million for Class A common shares and $250.0 million for preferred shares as of September 30, 2025[109]. - Affiliates owned approximately 12.3% of the company's outstanding Class A common shares as of September 30, 2025, with a fully-diluted interest of approximately 22.7%[138].

Financial Data and Key Metrics Changes - The company reported net income attributable to common shareholders of $99.7 million, or $0.27 per diluted share, with core FFO per share growth of 6.2% year over year [11][12] - The updated guidance for core FFO per share was increased by $0.01 to $1.87 at the midpoint, representing a growth of 5.6% for the last stretch of 2025 [6][14] - Same home core revenue growth was reported at 3.8%, with same home core operating expense growth muted at 2.4%, leading to same home core NOI growth of 4.6% [7][14] Business Line Data and Key Metrics Changes - The AMH development program delivered a total of 651 homes to wholly owned and joint venture portfolios, on track with expectations [12] - The company sold 395 properties, generating approximately $125 million of net proceeds at an average economic disposition yield in the high 3% [12][13] Market Data and Key Metrics Changes - The Midwest markets continue to outperform, supported by good underlying fundamentals, with expectations for sustained performance into 2026 [24][25] - The company noted that while there is some rate pressure from conversions of for sale to for rent, many markets are still performing well, particularly in the Midwest and certain Western markets [52] Company Strategy and Development Direction - The company focuses on portfolio optimization, operational execution, and prudent capital management, which has driven solid contributions across all areas of the AMH platform [5][9] - The strategy includes a shift in lease expiration management to front-load expirations in the first half of the year, which has positively impacted occupancy and new lease trends [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum heading into 2026, with expectations for improved occupancy and rent growth returning in the spring leasing season [35][67] - The company remains proactive in addressing regulatory updates and has been engaging with local municipalities to demonstrate its contributions to housing supply [80][81] Other Important Information - The company achieved a fully unencumbered balance sheet, marking a significant milestone, with net debt to adjusted EBITDA down to 5.1 times [13] - The company expects full year same home property tax growth in the high 2% area, with a reduction in full year same home core expense growth expectations to 3.25% [14] Q&A Session Summary Question: Impact of lease expiration strategy on occupancy and new lease trends - Management noted that the shift in lease expiration strategy has led to a decrease in turnover rate and is expected to positively impact occupancy as they move into the fourth quarter [20][22] Question: Sustained performance of Midwest markets - Management confirmed that the Midwest continues to show strength due to quality of life and affordability, with expectations for continued positive contributions [24][25] Question: Deceleration in same store revenue growth - Management explained that the deceleration is influenced by timing of last year's leasing spreads and strategic acceleration of leasing activity into earlier parts of the year [30][31] Question: Fourth quarter trends and outlook for 2026 - Management indicated that they expect November and December to show positive effects on occupancy, positioning the company well for the next year [35][36] Question: Stock buybacks versus development funding - Management stated that stock buybacks are being monitored closely and could complement the value created by the development program if executed at the right price [40][41] Question: Regulatory updates and election cycle - Management reported that regulatory activity has been quiet, with proactive engagement with local officials to highlight the company's contributions to housing supply [80][81]

Financial Data and Key Metrics Changes - The company reported net income attributable to common shareholders of $99.7 million, or $0.27 per diluted share, with core FFO per share growth of 6.2% year-over-year [11][12] - The updated guidance for core FFO per share was increased by $0.01 to $1.87 at the midpoint, representing a growth of 5.6% for the last stretch of 2025 [6][14] - Same home core revenue growth was reported at 3.8%, with same home core operating expense growth muted at 2.4%, leading to same home core NOI growth of 4.6% [7][14] Business Line Data and Key Metrics Changes - The AMH development program delivered a total of 651 homes to wholly owned and joint venture portfolios, on track with expectations [12] - The company sold 395 properties, generating approximately $125 million of net proceeds at an average economic disposition yield in the high 3% [12][13] - Same home average occupied days were reported at 95.9%, with preliminary new lease spreads of 0.3% balanced by renewal rate growth of 4% [7][8] Market Data and Key Metrics Changes - The Midwest markets continue to outperform, supported by good underlying fundamentals, with expectations for sustained performance into 2026 [24][25] - The company noted that BTR and multifamily are off-peak deliveries, with expectations for improvement into 2026 [53] Company Strategy and Development Direction - The company focuses on portfolio optimization, operational execution, and prudent capital management, which has driven solid contributions from all areas of the AMH platform [5][6] - The strategy includes a shift in lease expiration management to front-load expirations in the first half of the year, which has positively impacted occupancy and new lease trends [20][22] - The company is leveraging AI tools to enhance operational efficiency and improve the leasing experience [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum heading into 2026, with expectations for improved occupancy and rent growth in the spring leasing season [34][70] - The company remains proactive in addressing regulatory updates and has been engaging with local municipalities to communicate its contributions to housing supply [81][83] Other Important Information - The company achieved a fully unencumbered balance sheet, marking a significant milestone, with net debt to Adjusted EBITDA down to 5.1 times [13] - Full year 2025 property tax growth is expected to be in the high 2% area, positively impacting the updated full year outlook [12][14] Q&A Session Summary Question: Impact of lease expiration strategy on occupancy and new lease trends - Management noted that the shift in lease expiration strategy has led to a decrease in turnover rate and is expected to build occupancy towards the end of the year [20][22] Question: Sustained performance of Midwest markets - Management confirmed continued strength in the Midwest due to good quality of life and affordability, with expectations for positive contributions to the portfolio [24][25] Question: Deceleration in same store revenue growth - Management explained that the deceleration is influenced by timing of leasing spreads and strategic acceleration of leasing activity earlier in the year [28][30] Question: Fourth quarter trends and outlook for 2026 - Management indicated that November and December are expected to show positive effects on occupancy, positioning the company well for the next year [34][35] Question: Stock buybacks versus development funding - Management stated that stock buybacks are being monitored closely and could complement the value created by the development program at the right price [40][41] Question: Regulatory updates and election cycle - Management reported that regulatory activity has been quiet, with proactive engagement with local officials to highlight the company's contributions [81][83]

Financial Data and Key Metrics Changes - The company reported net income attributable to common shareholders of $99.7 million, or $0.27 per diluted share, with core FFO per share growth of 6.2% year over year [12][4] - The updated guidance for core FFO per share was increased by $0.01 to $1.87 at the midpoint, representing a growth of 5.6% for the last stretch of 2025 [4][15] - Same home core revenue growth was reported at 3.8%, with same home core NOI growth of 4.6% [5][15] Business Line Data and Key Metrics Changes - The company delivered solid same home average occupied days of 95.9% and new, renewal, and blended rental rate spreads of 2.5%, 4%, and 3.6% respectively [5][4] - Same home core operating expense growth was muted at 2.4%, contributing to the overall NOI growth [5][15] - The AMH development program delivered a total of 651 homes to the wholly owned and joint venture portfolios [13] Market Data and Key Metrics Changes - The Midwest markets continue to outperform, supported by good underlying fundamentals and a favorable cost of living [26][27] - The company noted a tapering of activity in October, with same home average occupied days dropping to 95.1% [5][4] - The company sold nearly 1,200 homes to end-user home buyers year to date, despite a slowdown in MLS activity [6][7] Company Strategy and Development Direction - The company focuses on portfolio optimization, operational execution, and prudent capital management as part of its strategy [4][6] - The development program is expected to maintain strategic sizing funded by internally generated capital and incremental debt capacity [8][15] - The company is leveraging AI tools to enhance operational efficiency and improve the leasing process [66][67] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing velocity improving and the benefits from the lease expiration management initiative [22][41] - The company anticipates a positive effect on occupancy and pricing power as it enters the spring leasing season next year [42][96] - Management highlighted the importance of controlling expenses and maintaining strength in the top line for future margin expansion [85][86] Other Important Information - The company’s balance sheet is now 100% unencumbered, with zero maturities until 2028 [14][15] - Full year 2025 property tax growth is expected to be in the high 2% area, positively impacting the updated outlook [13][15] Q&A Session Summary Question: Impact of lease expiration strategy on occupancy and new lease trends - Management noted that the shift in lease expirations has led to a decrease in turnover rate and is expected to build occupancy towards the end of the year [19][23] Question: Performance of Midwest markets - Management confirmed continued strength in the Midwest due to good quality of life and affordability, expecting this trend to sustain [26][27] Question: Same store revenue growth deceleration - Management explained that the deceleration is influenced by timing of last year's leasing spreads and strategic acceleration of leasing activity [32][38] Question: Fourth quarter trends and expectations - Management indicated that October showed improved leasing activity, suggesting better trends for November and December [40][41] Question: Stock buybacks versus development funding - Management stated that stock buybacks are being monitored closely and could complement the value created by the development program [48][55] Question: Regulatory updates - Management reported that regulatory activity has been relatively quiet, with proactive engagement with local municipalities [109][111]

Core Performance - American Homes 4 Rent (AMH) reported revenue of $478.46 million for the quarter ended September 2025, reflecting a year-over-year increase of 7.5% [1] - Earnings per share (EPS) for the quarter was $0.47, significantly up from $0.20 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $474.98 million by 0.73%, while the EPS surpassed the consensus estimate of $0.46 by 2.17% [1] Revenue Breakdown - Core revenues amounted to $405.62 million, slightly below the four-analyst average estimate of $409.34 million, with a year-over-year change of +7.5% [4] - Non-Same-Home core revenues were reported at $47.8 million, exceeding the average estimate of $45.95 million, representing a year-over-year increase of 14.3% [4] - Tenant charge-backs reached $72.84 million, surpassing the average estimate of $65.34 million, with a year-over-year change of +7.7% [4] - Same-Home core revenues were $357.83 million, below the estimated $363.39 million, but still showing a +6.6% change compared to the previous year [4] - Net earnings per share (diluted) were reported at $0.27, exceeding the average estimate of $0.16 [4] Stock Performance - Over the past month, shares of American Homes 4 Rent have returned -1.9%, contrasting with the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - American Homes 4 Rent (AMH) reported quarterly funds from operations (FFO) of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, and up from $0.44 per share a year ago, representing an FFO surprise of +2.17% [1][2] - The company achieved revenues of $478.46 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.73% and increasing from $445.05 million year-over-year [2] - The stock has underperformed the market, losing about 12.9% since the beginning of the year compared to the S&P 500's gain of 17.2% [3] Financial Performance - Over the last four quarters, American Homes 4 Rent has surpassed consensus FFO estimates three times and topped consensus revenue estimates four times [2] - The current consensus FFO estimate for the upcoming quarter is $0.48 on revenues of $465.79 million, and for the current fiscal year, it is $1.87 on revenues of $1.86 billion [7] Market Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future FFO expectations [3][4] - The estimate revisions trend for American Homes 4 Rent was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The REIT and Equity Trust - Residential industry is currently ranked in the bottom 41% of Zacks industries, which may impact the stock's performance [8]

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