American Homes 4 Rent(US:AMH)2024-05-03 18:37Financial Data and Key Metrics Changes - The company reported core FFO of $0.43 per share, reflecting a year-over-year growth of 5.8% [7][15] - Net income attributable to common shareholders was $109.3 million, or $0.30 per diluted share [15] - Adjusted FFO was $0.40, representing a year-over-year growth of 6.5% [15] Business Line Data and Key Metrics Changes - Same-Home core revenue growth was 5.3%, with occupancy metrics showing an increase to 96.2% [11] - Same-Home average occupied days improved to 96.6% in April, with new, renewal, and blended rental rate spreads of 5.1%, 5.2%, and 5.2% respectively [12] - Same-Home core NOI growth was 4.9% for the quarter [11] Market Data and Key Metrics Changes - The company noted a healthy demand for single-family rentals, driven by macro factors such as housing shortages and demographic trends [8] - The company observed a significant reduction in the supply of new homes in its markets, with about half the number of homes available compared to pre-pandemic levels [22] Company Strategy and Development Direction - The company is focused on its development program, expecting to deliver between 2,200 and 2,400 homes in 2024 [12] - The company aims to address the housing shortage by providing new premium housing options in desirable locations [9] - Sustainability initiatives include a commitment to energy-efficient homes, with 2023 deliveries being 54% more energy-efficient than typical American homes [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing demand for single-family rentals and the strength of the leasing momentum [10] - The company is maintaining its guidance for 2024, citing robust demand and leasing activity [17] - Management acknowledged the potential for increased bad debt but noted a positive trend in collections [26] Other Important Information - The company was added to the S&P 400 Index on March 1, creating an opportunity to sell approximately 3 million Class A common shares [17] - The company repaid its 2014-SFR2 securitization, freeing up approximately 4,500 properties for asset management and disposition [16] Q&A Session Summary Question: About external growth and portfolio acquisitions - Management indicated that they are seeing opportunities in the acquisition landscape, particularly from national builders, with economic yields in the high 4s to low 5s [21][22] Question: On bad debt and revenue sustainability - Management reported that bad debt remains consistent with previous years, with a slight improvement noted in March [26] Question: On expense trends and property taxes - Management maintained their expense growth outlook at 6.25%, with property taxes expected to grow in the low 7% area [30] Question: On renewal rent growth and tenant negotiations - Management confirmed that renewal rates remain healthy, with no significant pushback from tenants [56] Question: On home prices and move-outs to home ownership - Management noted that the percentage of move-outs to buy is at its lowest, indicating stability in rental demand despite fluctuations in home prices [85] Question: On the impact of institutional investors on the market - Management discussed the legislative landscape and emphasized that state-level initiatives are addressing housing shortages effectively [88][89]