Industry Overview - The single-family rental (SFR) industry is experiencing strong long-term fundamentals, driven by a large millennial cohort entering prime rental age and challenging affordability dynamics [3] - Demand within the SFR industry is expected to remain robust, supporting long-term growth prospects [3] Company Positioning - AMH has strategically built a portfolio of high-quality assets located in superior locations across the United States [4] - The company maintains a well-diversified portfolio footprint, which enhances its market presence [4] - AMH's operations are supported by a robust and efficient services platform, bolstered by ongoing investments in technology [4]

Industry Overview - The single-family rental (SFR) industry is currently in a strong position, benefiting from robust long-term fundamentals [3] - Demand in the SFR sector is expected to remain strong as the large millennial cohort transitions into prime rental age, coupled with challenging affordability dynamics [3] Company Positioning - AMH has strategically built a portfolio of high-quality assets located in superior locations across the United States [4] - The company maintains a well-diversified portfolio footprint, which supports its competitive advantage in the residential space [4] - AMH's high-quality assets are backed by a robust and efficient services platform, enhanced by ongoing investments in technology [4]

Financial Data and Key Metrics Changes - The business is performing very well, with positive revisions across the board in guidance [5] - August quarter-to-date same-home occupancy was 96%, with blended spreads in the high threes [5][17] - Full-year expectation on blended spreads is high threes, with less moderation in occupancy expected in the back half of the year compared to last year [17][30] Business Line Data and Key Metrics Changes - The company is on track to deliver over 2,200 newly built rental homes this year [3] - The focus on single-family detached products is increasingly important, differentiating the company from other residential portfolios [7] - FFO expectations for this year are leading the residential sector by hundreds of basis points [9] Market Data and Key Metrics Changes - Demand is in line with seasonal expectations, with differentiated markets like the Midwest, Seattle, and Salt Lake City performing extremely well [11][12] - Florida markets, particularly Orlando and Jacksonville, are performing well despite some pressures in Tampa [12] - In markets like Austin and San Antonio, supply is causing pressure, but the company remains committed to these long-term [24][25] Company Strategy and Development Direction - The company has a vertically integrated development program, allowing for efficient integration of new homes [3] - The strategy includes optimizing lease expirations to match stronger leasing seasons, shifting from a 50/50 split to 60/40 in favor of the first half of the year [16] - The company is exploring opportunities to acquire finished lots from national builders, which could enhance yields [40] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the future, citing strong demand fundamentals driven by the aging millennial cohort and affordability challenges [2] - The company is encouraged by regulatory changes focusing on easing development processes and addressing housing supply issues [60] - Collections and bad debt are trending positively, with bad debt tracking below 100 bps year-to-date [27][29] Other Important Information - The company is on track to have a fully unencumbered balance sheet by the end of the year, which is expected to positively impact its rating outlook [54][56] - The insurance renewal for the year resulted in a decrease in premiums, reflecting the company's strong performance [62] Q&A Session Summary Question: Demand environment and geographical performance - Demand is in line with seasonal expectations, with strong performance in diversified markets like the Midwest and Florida [11][12] Question: Trends in occupancy and lease expirations - Lease expirations have been optimized to match stronger leasing seasons, with expectations for less steepness in occupancy moderation [16][17] Question: Supply trends in markets - Supply pressures are noted in Austin and San Antonio, but the company remains committed to these markets long-term [24][25] Question: Development underwriting and tariff impacts - Vertical construction costs have remained stable, with the company managing to absorb tariff impacts effectively [35][36] Question: Portfolio acquisition opportunities - There has been a lack of portfolio activity recently, but management expects more opportunities to arise in the future [42][44] Question: Cost of capital and funding development - The development program is sized to be fundable without the need for incremental equity, relying on retained cash flow and recycled capital [49] Question: Regulatory changes and their impact - Recent regulatory changes are encouraging, focusing on easing development processes and addressing housing supply issues [60]

Core Viewpoint - AMH, a leading integrated owner, operator, and developer of single-family rental homes, will participate in a roundtable discussion at the BofA Securities 2025 Global Real Estate Conference on September 10, 2025 [1]. Company Overview - AMH (NYSE: AMH) is an internally managed Maryland real estate investment trust (REIT) focused on acquiring, developing, renovating, leasing, and managing single-family rental properties [3]. - As of June 30, 2025, AMH owned over 61,000 single-family properties across the Southeast, Midwest, Southwest, and Mountain West regions of the United States [4]. Recognition and Awards - In recent years, AMH has been recognized as a 2025 Great Place to Work®, a 2025 Top U.S. Homebuilder by Builder100, and one of the 2025 Most Trustworthy Companies in America by Newsweek and Statista Inc. [4].

Core Viewpoint - The article discusses the investment landscape in the real estate sector, particularly focusing on the performance and potential of various real estate investment trusts (REITs) and related securities [2]. Group 1: Company Insights - Hoya Capital Research & Index Innovations is affiliated with Hoya Capital Real Estate, which provides investment advisory services and focuses on publicly traded securities in the real estate industry [2]. - The commentary emphasizes that the information provided is for educational purposes and does not constitute investment advice [2][3]. Group 2: Market Commentary - The article highlights that past performance of investments is not indicative of future results, stressing the importance of understanding market risks [3]. - It notes that investments in real estate companies and housing industry firms carry unique risks, which should be considered by potential investors [2].

Core Insights - American Homes 4 Rent (AMH) reported strong financial results for Q2 2025, with Core FFO per share at $0.47, significantly above the $0.17 analyst estimate, and revenue reaching $457.5 million, exceeding expectations of $450.2 million [1][2] - The company raised its full-year 2025 Core FFO guidance, indicating confidence as it approaches the peak leasing season [1][12] Financial Performance - Core FFO per share and unit increased by 4.4% year-over-year [2] - Revenue grew by 8.0% compared to the prior year [2] - Net income per diluted share rose by 12.0% year-over-year [2][5] - Core NOI from Same-Home properties increased by 4.1% [1][2] Business Model and Strategy - American Homes 4 Rent focuses on acquiring, building, leasing, and managing single-family rental homes, targeting families and professionals [3] - The company emphasizes internal development through its AMH Development program, delivering new homes rather than relying on acquisitions [4][7] - The average occupied portfolio consisted of 58,282 homes as of Q2 2025 [3] Market Dynamics - The leasing environment remained strong, with a same-home average occupancy rate of 96.3% and blended lease rate growth of 4.3% [6] - The company experienced strong demand for single-family rentals, particularly in the Midwest, despite some competition in markets like Texas and Florida [8] Capital Structure and Financial Position - The company issued $650 million in new unsecured senior notes at a 4.95% coupon rate, enhancing financial flexibility [8] - Cash on hand totaled $323.3 million, with total outstanding debt at $5.2 billion and a weighted average interest rate of 4.5% [8][9] - Retained cash flow was $49.3 million, and the company generated $120.6 million in net proceeds from property sales [9] Future Outlook - Management raised full-year 2025 Core FFO guidance to a midpoint of $1.86 per share, reflecting a 5.1% anticipated growth [12] - The company plans to deliver 1,800–2,000 homes in 2025, with investment costs estimated at $700–800 million [13]

Financial Performance - For Q2 2025, American Homes 4 Rent reported revenues of $457,503,000, a 8.0% increase from $423,494,000 in Q2 2024[31]. - Net income for the six months ended June 30, 2025, was $252,337,000, up 6.6% from $236,629,000 in the same period of 2024[34]. - Net income attributable to common shareholders for Q2 2025 was $105,553,000, representing a 14.0% increase from $92,142,000 in Q2 2024[31]. - Comprehensive income attributable to common shareholders for the six months ended June 30, 2025, was $214,913,000, up from $201,185,000 in the same period of 2024[34]. - Net income for the six months ended June 30, 2025, was $252,337,000, compared to $236,629,000 for the same period in 2024, reflecting an increase of approximately 6.9%[41]. - Net income for the three months ended June 30, 2025, was $123,624,000, compared to $108,534,000 for the same period in 2024, representing an increase of approximately 13.5%[117]. Assets and Liabilities - Total assets increased to $13,592,318,000 as of June 30, 2025, compared to $13,381,151,000 at the end of 2024, reflecting a growth of 1.6%[28]. - Total liabilities increased to $5,746,775,000, up 3.9% from $5,532,521,000 at the end of 2024[28]. - The company’s accumulated deficit increased to $(388,735,000) as of June 30, 2025, from $(380,632,000) at the end of 2024[28]. - Total cash, cash equivalents, and restricted cash at the end of the period was $466,600,000, down from $881,646,000 at the end of the same period in 2024[61]. - Total debt as of June 30, 2025, is $5,227.5 million, an increase from $5,075.4 million as of December 31, 2024[89]. Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2025, was $495,261,000, up from $475,780,000 in 2024, indicating a growth of about 4.1%[41]. - Total cash used for investing activities was $228,405,000 for the six months ended June 30, 2025, compared to $108,312,000 in 2024, representing an increase of approximately 110.9%[41]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $116,384,000 for the six months ended June 30, 2025, compared to an increase of $659,785,000 in 2024[41]. - Net cash used for financing activities was $150.5 million in 2025, a decrease of $442.8 million compared to net cash provided of $292.3 million in 2024[218]. Shareholder Information - The company reported a total of 370,692,250 weighted-average common shares outstanding for Q2 2025, compared to 366,778,333 in Q2 2024[31]. - The company made distributions to common unitholders totaling $254,590,000 during the six months ended June 30, 2025, compared to $218,154,000 in 2024[61]. - The company has a remaining repurchase authorization of up to $265.1 million for Class A common shares as of June 30, 2025[103]. - The At-the-Market Program allows for the issuance of up to $1.0 billion in Class A common shares, with $753.7 million remaining available for future issuances[101]. Property Operations - The company’s property operating expenses for the six months ended June 30, 2025, were $327,619,000, up from $305,397,000 in the same period of 2024, which is an increase of 7.3%[48]. - The average monthly realized rent per property was $2,282, with a blended rent change of 4.2% for the three months ended June 30, 2025[147]. - The occupancy rate for total properties (excluding properties held for sale) was 94.7% as of June 30, 2025, with 58,317 properties occupied[144]. - Property operating expenses for the three months ended June 30, 2025, were $160.1 million, compared to $149.5 million in 2024[175]. Development and Acquisitions - The company is focused on developing "built-for-rental" homes through its internal AMH Development Program, adapting to the current macroeconomic environment[154]. - The company had commitments to acquire six single-family properties for an aggregate purchase price of $1.5 million and $114.2 million in purchase commitments for land as of June 30, 2025[129]. - The company added 191 single-family properties to its portfolio for a total cost of approximately $74.6 million from July 1, 2025, to July 25, 2025[137]. - The company strategically scaled back acquisitions of single-family properties as the housing market adjusts to the macroeconomic environment[215]. Expenses - Depreciation and amortization expenses for the six months ended June 30, 2025, were $251,867,000, compared to $233,329,000 in 2024, marking an increase of about 8.0%[41]. - General and administrative expenses decreased to $39.7 million for the six months ended June 30, 2025, down from $43.6 million for the same period in 2024, mainly due to a reduction in noncash share-based compensation[198]. - Interest expense rose 18.7% to $91.7 million for the six months ended June 30, 2025, from $77.3 million for the same period in 2024, primarily due to additional interest from unsecured senior notes issuances[199].

Financial Data and Key Metrics Changes - The company reported net income attributable to common shareholders of $105.6 million or $0.28 per diluted share for the quarter [14] - Core FFO per share was $0.47, representing a year-over-year growth of 4.9%, while adjusted FFO was $0.42, reflecting a growth of 6.3% year-over-year [14] - Full year core FFO per share guidance was increased by $0.03 to $1.86, indicating a year-over-year growth expectation of 5.1% [8][19] Business Line Data and Key Metrics Changes - Same home core revenue growth was 3.9% for the quarter, driven by strong leasing and rate growth [9] - Core operating expense growth was 3.6%, leading to same home core NOI growth of 4.1% for the quarter [10] - The company delivered 636 homes through its AMH development program, meeting expectations [15] Market Data and Key Metrics Changes - Foot traffic increased by over 5% year-over-year, contributing to solid leasing and rate growth [9] - Same home average occupied days were 96.3%, with new renewal and blended rental rate spreads of 4.1% and 4.4% respectively [9] - July occupancy was reported at 96.1%, consistent with expectations for the year [54] Company Strategy and Development Direction - The company focuses on operational excellence, portfolio optimization, and prudent capital acumen as key strategic areas [6][8] - The AMH development program is central to growth, with a disciplined approach to acquisitions and a focus on high-quality investment-grade balance sheets [8][12] - The company aims to flatten the seasonal curve in leasing activity, expecting less deceleration in the third and fourth quarters compared to the previous year [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of demand for high-quality homes and the effectiveness of their revenue management strategy [9][10] - The company anticipates a favorable property tax environment due to recent reforms in Texas, positively impacting their financial outlook [14][19] - Management noted that the leasing environment is expected to remain strong, with improved bad debt outlook and stable occupancy rates [19][51] Other Important Information - The company has a net debt to adjusted EBITDA ratio of 5.2 times, with a fully undrawn revolving credit facility of $1.25 billion [17] - The company sold 370 properties for approximately $120 million in net proceeds, indicating active portfolio optimization [17] - AI technology is being leveraged to enhance leasing processes and improve resident experiences [81] Q&A Session Summary Question: Seasonal changes expected in the second half of the year - Management discussed the analysis of seasonal curves and the success of their lease expiration management initiative, which has shifted expirations to capture more leasing opportunities during prime seasons [26][27] Question: Acquisition environment and homebuilder negotiations - Management noted a slight change in homebuilder willingness to negotiate prices, providing optimism for future acquisition opportunities [30] Question: Core revenue growth outlook - The increase in core revenue growth expectations was attributed to improved leasing activity and a better bad debt outlook [34] Question: Development platform and yield expectations - Management highlighted strong execution in their development program, with yields expected to remain stable despite cost pressures [60] Question: Property tax outlook - Management provided insights on property tax assessments and the potential for favorable outcomes in key states, with a long-term average growth rate of 4% to 5% expected [66] Question: Resident income to rent ratios - Incoming resident income has been strong, with ratios exceeding five times rent and household incomes surpassing $150,000 [112] Question: Ideal occupancy levels and market conditions - Management indicated that the ideal occupancy level has shifted to around 96%, with expectations to maintain this level even in a stronger housing market [107]

Financial Data and Key Metrics Changes - The company reported net income attributable to common shareholders of $105.6 million, or $0.28 per diluted share [12] - Core FFO per share was $0.47, representing a year-over-year growth of 4.9%, while adjusted FFO was $0.42, reflecting a growth of 6.3% [12] - Full year core FFO per share guidance was increased by $0.03 to $1.86, indicating a year-over-year growth expectation of 5.1% [6][15] Business Line Data and Key Metrics Changes - Same home core revenue growth was 3.9% for the quarter, driven by strong leasing and rate growth [7] - Core operating expense growth was 3.6%, leading to same home core NOI growth of 4.1% for the quarter [8] - The company delivered a total of 636 homes to its wholly owned and joint venture portfolios, meeting expectations [13] Market Data and Key Metrics Changes - Foot traffic increased by more than 5% year-over-year, contributing to solid leasing and rate growth [7] - Same home average occupied days were 96.3%, with new renewal and blended rental rate spreads of 4.1% and 4.4% respectively [7] - In July, same home average occupied days were 96.1%, indicating steady leasing activity [8] Company Strategy and Development Direction - The company focuses on operational excellence, portfolio optimization, and prudent capital acumen as key areas of its strategy [5][6] - The AMH development program remains the backbone of growth, with initial yields improving on newly delivered homes [9] - The company is committed to a disciplined acquisition approach, reviewing thousands of assets monthly across over 30 markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expects a flatter seasonal curve in 2025 compared to 2024, anticipating less leasing deceleration in the third and fourth quarters [9] - The favorable property tax news from Texas has positively impacted the full year outlook [12] - Management expressed optimism about the acquisition environment, noting some encouraging signs from homebuilders regarding price negotiations [10][27] Other Important Information - The company’s net debt to adjusted EBITDA ratio was down to 5.2 times, with a fully undrawn revolving credit facility of $1.25 billion [14] - The company has a cash balance of $323 million, which includes proceeds from a recent bond offering [14] - The company is seeing strong incoming resident income, with income to rent ratios exceeding five times and household incomes surpassing $150,000 [105] Q&A Session Summary Question: Seasonal changes expected in the second half of the year - Management discussed the analysis of the seasonal curve, noting a shift in lease expirations to capture more leasing opportunities during prime season [22][23] Question: Acquisition environment and homebuilder negotiations - Management noted a slight change in willingness to negotiate prices from some national builders, providing optimism for future acquisitions [26][27] Question: Change in core revenue growth outlook - The increase in core revenue growth outlook was attributed to improved bad debt outlook and strong leasing activity [29][30] Question: Development platform and yield expectations - Management highlighted outstanding execution and quick lease-up as factors contributing to improved development yields, with expectations of mid-five yields for 2025 deliveries [54][57] Question: Property tax updates and long-term outlook - Management provided insights on property tax assessments, indicating a favorable outlook based on initial assessed values, particularly in Texas [61][62] Question: Disposition strategy and remaining homes - Management indicated that approximately 10-15% of freed-up homes from securitization may become attractive disposition candidates over the next few years [67][68] Question: Resident income trends - Management reported that incoming resident incomes are trending higher, with strong income to rent ratios [105]

Core Insights - American Homes 4 Rent (AMH) reported revenue of $457.5 million for the quarter ended June 2025, marking an 8% year-over-year increase and exceeding the Zacks Consensus Estimate of $443.36 million by 3.19% [1] - The company achieved an EPS of $0.47, up from $0.25 a year ago, and surpassed the consensus EPS estimate of $0.46 by 2.17% [1] Revenue Breakdown - Same-Home core revenues were reported at $361.33 million, slightly below the average estimate of $361.49 million, reflecting a year-over-year increase of 6.7% [4] - Tenant charge-backs revenue reached $52.46 million, exceeding the average estimate of $49.99 million, with a year-over-year change of 10.7% [4] - Core revenues totaled $405.05 million, surpassing the average estimate of $400.72 million, representing a 7.7% year-over-year increase [4] - Non-Same-Home core revenues were reported at $43.72 million, exceeding the average estimate of $39.23 million, with a year-over-year change of 17% [4] Stock Performance - Over the past month, shares of American Homes 4 Rent have returned -0.5%, while the Zacks S&P 500 composite has increased by 2.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]