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 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]