American Homes 4 Rent(AMH) - 2025 Q2 - Quarterly Results

Summary Earnings Press Release AMH reported strong financial and operating results for the second quarter of 2025, highlighted by significant year-over-year growth in revenues, net income, and Core Funds from Operations (Core FFO), leading to raised full-year 2025 guidance for Core FFO per share Q2 2025 Financial Highlights (Year-over-Year) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Rents & other property revenues | $457.5M | $423.5M | +8.0% | | Net income attributable to common shareholders | $105.6M | $92.1M | +14.7% | | Net income per diluted share | $0.28 | $0.25 | +12.0% | | Core FFO per share and unit | $0.47 | $0.45 | +4.9% | | Adjusted FFO per share and unit | $0.42 | $0.39 | +6.3% | | Same-Home Core NOI | $236.8M | $227.5M | +4.1% | - The company raised its full-year 2025 Core FFO guidance midpoint by $0.03 to $1.86 per share and unit, representing an anticipated 5.1% growth over the prior year[7][10] - During Q2 2025, AMH delivered 636 newly constructed homes through its development program and issued $650.0 million of 4.95% unsecured senior notes due 2030[10][24] - Same-Home portfolio achieved 96.3% average occupancy in Q2 2025, with blended rental rate growth of 4.3% (4.1% on new leases and 4.4% on renewals)[10] Select Non-GAAP Reconciliations – Core Net Operating Income This section provides detailed reconciliations of non-GAAP measures such as Core Net Operating Income (Core NOI), Same-Home Core NOI, and core revenues to their nearest GAAP equivalents, offering transparency into the company's operating performance Core NOI Reconciliation Summary (Q2 2025 vs Q2 2024) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Core revenues | $405,046 | $376,123 | | Core property operating expenses | $140,907 | $133,141 | | Core NOI (Total Portfolio) | $264,139 | $242,982 | | Same-Home Core NOI | $236,798 | $227,487 | - The reconciliations demonstrate how GAAP figures like 'Rents and other single-family property revenues' and 'Property operating expenses' are adjusted to arrive at the non-GAAP 'Core' metrics used for performance evaluation[40] Fact Sheet The fact sheet offers a condensed view of AMH's key operational, financial, and portfolio data for the last five quarters, including per-share metrics, balance sheet information, and property statistics Key Metrics as of June 30, 2025 | Metric | Value | | :--- | :--- | | Core FFO per share and unit (Q2 2025) | $0.47 | | Total Debt | $5.23B | | Total single-family properties (wholly owned) | 61,500 | | Total single-family properties (wholly owned and managed) | 65,116 | | Total Average Occupied Days Percentage | 95.7% | | Same-Home Average Occupied Days Percentage | 96.3% | - The company's Net Debt and Preferred Shares to Adjusted EBITDAre ratio stood at 5.2x as of June 30, 2025[45] Financial Information Condensed Consolidated Statements of Operations The income statement shows a year-over-year increase in total revenues to $457.5 million for Q2 2025, with net income attributable to common shareholders growing to $105.6 million, or $0.28 per diluted share Q2 2025 Statement of Operations Summary (vs. Q2 2024) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Rents and other single-family property revenues | $457,503 | $423,494 | | Total expenses | $390,406 | $362,763 | | Net income | $123,624 | $108,534 | | Net income attributable to common shareholders | $105,553 | $92,142 | Funds from Operations This section reconciles net income to key non-GAAP performance metrics, with FFO at $0.45 per share, Core FFO at $0.47 per share, and Adjusted FFO at $0.42 per share for Q2 2025, all showing year-over-year growth FFO Reconciliation per Share (Q2 2025 vs Q2 2024) | Per FFO Share and Unit | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | FFO attributable to common share and unit holders | $0.45 | $0.42 | | Core FFO attributable to common share and unit holders | $0.47 | $0.45 | | Adjusted FFO attributable to common share and unit holders | $0.42 | $0.39 | Core Net Operating Income – Total Portfolio The total portfolio's Core NOI increased to $264.1 million in Q2 2025 from $243.0 million in Q2 2024, with a Core NOI margin of 65.2%, providing a detailed breakdown by property status - For Q2 2025, the total portfolio Core NOI margin was 65.2%, an improvement from 64.6% in Q2 2024[53] Core NOI by Property Status (Q2 2025) | (in thousands) | Same-Home | Stabilized | Non-Stabilized | Held for Sale & Other | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Property count | 54,029 | 3,182 | 3,383 | 906 | 61,500 | | Core NOI | $236,798 | $16,473 | $9,713 | $1,155 | $264,139 | | Core NOI Margin | 65.5% | 71.1% | 55.4% | 38.2% | 65.2% | Same-Home Results This section provides a comprehensive analysis of the Same-Home portfolio's performance, covering year-over-year and sequential quarterly results, as well as a detailed breakdown of operating metrics by market, showing strong overall rent growth and NOI improvement Quarterly and Year-to-Date Comparisons For Q2 2025, the Same-Home portfolio delivered a 4.1% year-over-year increase in Core NOI, driven by a 3.9% rise in core revenues, primarily due to a 4.0% increase in Average Monthly Realized Rent per Property Same-Home Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Core revenues | $361.3M | $347.6M | +3.9% | | Core property operating expenses | $124.5M | $120.1M | +3.6% | | Core NOI | $236.8M | $227.5M | +4.1% | | Average Occupied Days Percentage | 96.3% | 96.7% | -0.4% | | Average Monthly Realized Rent | $2,276 | $2,188 | +4.0% | Sequential Quarterly Results On a sequential basis, the Same-Home portfolio showed continued strength in Q2 2025, with average blended rent change accelerating to 4.3% from 3.6% in Q1 2025, driven by stronger re-leasing spreads Sequential Same-Home Leasing Trends | Metric | Q2 2025 | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | :--- | | Average Blended Change in Rent | 4.3% | 3.6% | 3.4% | | Average Change in Rent for Renewals | 4.4% | 4.5% | 5.0% | | Average Change in Rent for Re-Leases | 4.1% | 1.4% | 0.3% | Operating Metrics by Market This table details Same-Home operating metrics across the company's top 20 markets, with Greater Chicago (7.9%), Cincinnati (6.5%), and Indianapolis (6.3%) showing the highest blended rent growth in Q2 2025 - Top markets for blended rent growth in Q2 2025 included Seattle (8.0%), Greater Chicago area (7.9%), and Cincinnati (6.5%)[67] - The largest Same-Home markets by property count are Atlanta (5,319), Charlotte (3,879), and Dallas-Fort Worth (3,591)[67] Condensed Consolidated Balance Sheets As of June 30, 2025, AMH reported total assets of $13.6 billion, up from $13.4 billion at year-end 2024, with total liabilities at $5.7 billion and total equity at $7.8 billion Balance Sheet Summary | (in thousands) | Jun 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total real estate assets, net | $12,499,922 | $12,365,691 | | Cash and cash equivalents | $323,258 | $199,413 | | Total assets | $13,592,318 | $13,381,151 | | Total liabilities | $5,746,775 | $5,532,521 | | Total equity | $7,845,543 | $7,848,630 | Debt Summary As of June 30, 2025, the company had total debt of $5.2 billion with a weighted-average interest rate of 4.45% and a weighted-average maturity of 9.9 years, predominantly fixed-rate and unsecured - Total debt outstanding was $5.23 billion, with a weighted-average interest rate of 4.45% and a term to maturity of 9.9 years[73] - The company has provided notice of its intent to pay off the $427.5 million AMH 2015-SFR2 securitization during the third quarter of 2025[76] - The company had no outstanding borrowings on its $1.25 billion revolving credit facility as of June 30, 2025[25] Capital Structure and Credit Metrics The company's total capitalization stood at $20.7 billion as of June 30, 2025, with debt comprising 25.3% of the total, maintaining healthy credit metrics and investment-grade ratings Key Credit Metrics (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Net Debt and Preferred Shares to Adjusted EBITDAre | 5.2x | | Fixed Charge Coverage | 4.1x | | Unencumbered Core NOI percentage | 93.6% | Credit Ratings | Rating Agency | Rating | Outlook | | :--- | :--- | :--- | | Moody's Investor Service | Baa2 | Stable | | S&P Global Ratings | BBB | Positive | - The company was in compliance with all unsecured senior note and unsecured credit facility covenants as of June 30, 2025[81] Property and Other Information Top 20 Markets Summary This section provides a detailed overview of property and leasing information for AMH's top 20 markets, with Atlanta, GA being the largest with 6,028 properties, representing 9.9% of the total portfolio Top 5 Markets by Property Count | Market | Number of Properties | % of Total | | :--- | :--- | :--- | | Atlanta, GA | 6,028 | 9.9% | | Charlotte, NC | 4,244 | 7.0% | | Dallas-Fort Worth, TX | 3,787 | 6.2% | | Nashville, TN | 3,383 | 5.6% | | Jacksonville, FL | 3,365 | 5.6% | - For the total portfolio, the average occupancy was 95.7% and the average blended rent change was 4.2% for Q2 2025[84] Property Additions and Dispositions This section details the company's portfolio activity for Q2 and YTD 2025, with 506 properties added primarily through development and 370 properties disposed of as part of its capital recycling strategy Property Additions During Q2 2025, the company added 506 properties at an average total investment cost of $400,200, with year-to-date additions totaling 943 properties Property Additions Summary | Period | Number of Properties | Average Total Investment Cost | | :--- | :--- | :--- | | Q2 2025 | 506 | $400,200 | | YTD 2025 | 943 | $400,993 | Property Dispositions AMH disposed of 370 properties in Q2 2025, generating average net proceeds of $325,982 per property, with 786 properties sold year-to-date and 904 properties held for sale Property Dispositions Summary | Period | Number of Properties | Average Net Proceeds per Property | | :--- | :--- | :--- | | Q2 2025 | 370 | $325,982 | | YTD 2025 | 786 | $324,564 | AMH Development Pipeline Summary As of June 30, 2025, AMH's development pipeline consisted of 8,965 total lots owned and optioned for future delivery, with 1,181 homes delivered year-to-date and a full-year 2025 estimate of 2,200-2,400 total deliveries - The total development pipeline includes 8,078 lots for future delivery and an additional 887 lots optioned, totaling 8,965 lots[94] Estimated 2025 Development Deliveries | Pipeline | Full Year Estimated 2025 Deliveries | | :--- | :--- | | Wholly-owned | 1,800 - 2,000 | | Joint venture | ~400 | | Total | 2,200 - 2,400 | Lease Expirations, Share Repurchase History and ATM Share History This section provides data on upcoming lease expirations, share repurchase activity, and the At-The-Market (ATM) share program, noting a significant number of leases expiring in the first half of 2026 and no share repurchase or ATM activity in Q2 2025 Lease Expirations The lease expiration schedule shows a concentration in the first and second quarters of 2026, with 17,314 and 16,396 leases expiring, aligning with the company's strategy to shift expirations to the peak leasing season - A total of 33,710 leases are scheduled to expire in the first half of 2026, representing the peak period for expirations[98] Share Repurchase History AMH did not repurchase any of its common shares in Q2 2025, with $265.1 million remaining under its current share repurchase authorization - No common shares were repurchased in Q2 2025, with the remaining authorization at $265,067 thousand[100] ATM Share History The company did not sell any shares through its At-The-Market (ATM) program during Q2 2025, with $753.7 million remaining under the ATM program authorization - No shares were sold via the ATM program in Q2 2025[102] 2025 Guidance AMH has raised its full-year 2025 guidance, now expecting Core FFO per share in the range of $1.84 to $1.88, an increase of $0.03 at the midpoint, and raised Same-Home Core NOI growth guidance Updated Full Year 2025 Guidance | Metric | Previous Guidance | Current Guidance | | :--- | :--- | :--- | | Core FFO per share and unit | $1.80 - $1.86 | $1.84 - $1.88 | | Same-Home Core revenues growth | 2.50% - 4.50% | 3.00% - 4.50% | | Same-Home Core property operating expenses growth | 3.00% - 5.00% | 3.00% - 4.50% | | Same-Home Core NOI growth | 2.25% - 4.25% | 2.75% - 4.75% | - The increase in Core FFO guidance is attributed to stronger Core NOI growth from better leasing performance and lower bad debt, favorable property tax information, and an improved financing cost outlook[106] - The guidance for wholly-owned development deliveries remains at 1,800 - 2,000 properties for the full year 2025[105] Defined Terms and Non-GAAP Reconciliations This concluding section provides detailed definitions for key operational metrics and non-GAAP financial measures, such as Core NOI, FFO, and Adjusted FFO, along with comprehensive reconciliation tables to their most directly comparable GAAP measures - Defines Core Net Operating Income (Core NOI) as core revenues less core property operating expenses, excluding certain items like tenant charge-backs and noncash share-based compensation[113] - Defines Funds from Operations (FFO) in accordance with NAREIT standards and further defines Core FFO and Adjusted FFO by making additional adjustments for items like transaction costs, noncash compensation, and recurring capital expenditures[128][129][131] - Defines a Same-Home Property as one that has been stabilized for more than 90 days prior to the beginning of the earliest comparison period and has not been held for sale or experienced a casualty loss[144] - Provides detailed reconciliations for various non-GAAP measures, including EBITDAre, Adjusted EBITDAre, Retained Cash Flow, and FFO per share, to their corresponding GAAP metrics[123][137][143]