American Homes 4 Rent(AMH) - 2024 Q1 - Quarterly Report

PART I FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended March 31, 2024 American Homes 4 Rent Financial Statements Reports Q1 2024 revenues of $423.6 million, net income of $128.1 million, and total assets of $12.76 billion Condensed Consolidated Balance Sheet Highlights (AMH) | Metric | March 31, 2024 ($ in thousands) | December 31, 2023 ($ in thousands) | | :--- | :--- | :--- | | Total Assets | $12,761,092 | $12,688,190 | | Total Real Estate Assets, Net | $11,806,056 | $11,757,225 | | Cash and Cash Equivalents | $124,826 | $59,385 | | Total Liabilities | $5,056,361 | $5,035,307 | | Unsecured Senior Notes, Net | $3,095,733 | $2,500,226 | | Asset-Backed Securitizations, Net | $1,407,380 | $1,871,421 | | Total Equity | $7,704,731 | $7,652,883 | Condensed Consolidated Statements of Operations Highlights (AMH) | Metric | Q1 2024 ($ in thousands) | Q1 2023 ($ in thousands) | | :--- | :--- | :--- | | Rents and other revenues | $423,555 | $397,703 | | Total Expenses | $366,841 | $349,398 | | Gain on sale of properties, net | $68,901 | $84,659 | | Net Income | $128,095 | $137,699 | | Net income attributable to common shareholders | $109,289 | $117,465 | | Diluted EPS | $0.30 | $0.32 | Condensed Consolidated Cash Flow Highlights (AMH) | Metric | Q1 2024 ($ in thousands) | Q1 2023 ($ in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $201,780 | $200,467 | | Net cash used for investing activities | ($68,146) | ($72,912) | | Net cash (used for) provided by financing activities | ($72,204) | $63,300 | | Net increase in cash | $61,430 | $190,855 | Notes to Unaudited Condensed Consolidated Financial Statements Details accounting policies, asset composition, debt structure, and significant Q1 2024 financing activities - As of March 31, 2024, the Company owned 59,343 single-family properties in 21 states, including 728 properties classified as held for sale[60] Debt Composition as of March 31, 2024 | Debt Type | Outstanding Principal ($ in thousands) | | :--- | :--- | | Asset-backed securitizations | $1,411,186 | | Unsecured senior notes | $3,150,000 | | Revolving credit facility | $0 | | Total Debt | $4,561,186 | - In Q1 2024, the Operating Partnership paid off the $460.6 million AMH 2014-SFR2 securitization, resulting in a $1.0 million loss on early extinguishment of debt and releasing 4,516 homes as collateral[88] - In Q1 2024, the Operating Partnership issued $600.0 million of 5.500% unsecured senior notes due 2034, receiving net proceeds of $595.5 million[89] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Analyzes Q1 2024 financial performance, highlighting revenue growth, operational results, and liquidity Overview Summarizes the company's property portfolio of 59,343 homes and its focus on the AMH Development Program Portfolio Snapshot as of March 31, 2024 | Metric | Value | | :--- | :--- | | Total Single-Family Properties | 59,343 | | Properties Held for Sale | 728 | | Occupied Properties (excl. held for sale) | 56,362 | | Properties in Unconsolidated JVs | 3,004 | - In Q1 2024, the company added 482 homes (441 from its AMH Development Program) and sold 471 homes[143] - The company has strategically scaled back acquisitions through its National Builder Program and traditional channels, focusing on its internal AMH Development Program, and anticipates resuming growth in other channels once markets stabilize[143] Results of Operations Details a 6.5% revenue increase to $423.6 million and a 5.3% growth in Same-Home core revenues for Q1 2024 Q1 2024 vs. Q1 2023 Performance | Metric ($ in millions) | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Rents & Other Revenues | $423.6 | $397.7 | +6.5% | | Property Operating Expenses | $155.9 | $147.1 | +6.0% | | Net Income | $128.1 | $137.7 | -7.0% | | Core NOI | $237.7 | $220.9 | +7.6% | Same-Home Portfolio Performance (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Core Revenues | $334.1M | $317.4M | +5.3% | | Core Property Operating Expenses | $114.8M | $108.4M | +5.9% | | Core NOI | $219.3M | $209.0M | +4.9% | | Avg. Monthly Realized Rent | $2,147 | $2,027 | +5.9% | | Avg. Occupied Days % | 96.2% | 97.2% | -1.0% | Liquidity and Capital Resources Outlines liquidity of $124.8 million in cash and key Q1 2024 financing activities, including a $600 million note issuance - As of March 31, 2024, liquidity included $124.8 million in cash and $1.25 billion available under the revolving credit facility[188] - In Q1 2024, the company issued $600.0 million of 5.500% unsecured senior notes due 2034, raising net proceeds of $595.5 million[188][200] - The company raised $33.7 million in gross proceeds from its At-the-Market (ATM) program in Q1 2024, with $864.3 million remaining available[188][202] - Net cash used for financing activities was $72.2 million in Q1 2024, a significant shift from $63.3 million provided by financing in Q1 2023, driven by the payoff of the AMH 2014-SFR2 securitization, offset by the new notes issuance[198] Additional Non-GAAP Measures Reconciles non-GAAP measures, showing Core FFO growth to $180.9 million and Adjusted EBITDAre growth to $227.7 million FFO Reconciliation Highlights ($ in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income attributable to common shareholders | $109,289 | $117,465 | | FFO attributable to common share and unit holders | $168,376 | $158,604 | | Core FFO attributable to common share and unit holders | $180,937 | $168,489 | | Adjusted FFO attributable to common share and unit holders | $166,018 | $153,488 | EBITDAre Reconciliation Highlights ($ in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $128,095 | $137,699 | | EBITDA | $282,398 | $286,298 | | EBITDAre | $215,094 | $202,149 | | Adjusted EBITDAre | $227,655 | $212,034 | Item 3. Quantitative and Qualitative Disclosures About Market Risk Discusses market risk exposure, primarily interest rate risk, which is currently minimal due to no variable rate debt - As of March 31, 2024, the company had no outstanding variable rate debt and therefore no current exposure to interest rate risk on its borrowings[221] Item 4. Controls and Procedures Confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls - Management concluded that the disclosure controls and procedures for both American Homes 4 Rent and the Operating Partnership were effective as of the end of the period covered by the report[224][227] - There were no changes during the quarter ended March 31, 2024, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[225][228] PART II OTHER INFORMATION Item 1. Legal Proceedings Discloses cooperation with a Georgia Attorney General's Office investigation regarding landlord-tenant matters - The company is cooperating with an investigation by the Georgia Attorney General's Office concerning landlord-tenant matters and is exploring a potential negotiated resolution[128][230] Item 1A. Risk Factors States no material changes to risk factors disclosed in the 2023 Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K[231]