Financial Data and Key Metrics Changes - The overall financial performance showed a decline in Adjusted EBITDA year-on-year, reflecting weaker macro conditions, with a positive free cash flow generated despite challenges [9][16][23] - Net debt ended at $3.8 billion, with a focus on cash generation and resilience in the balance sheet [7][22] - Gross margin declined by 6%, impacted by a 17% lower Rand oil price and continued pressure in chemicals pricing [23] Business Line Data and Key Metrics Changes - In the mining segment, EBITDA was lower due to the phaseout of export coal sales, but additional income was realized from leasing coal terminal capacity [26] - Fuels EBITDA increased, supported by higher refining margins and improved operational performance at Secunda and Natref [27] - Chemicals EBITDA generation remains under pressure due to lower prices and soft demand in global markets, with a notable decline in both Africa and America [27] Market Data and Key Metrics Changes - The Brent crude oil price decreased by 14% year-on-year, contributing to a 17% decline in the Rand oil price [16] - The oil market remains in surplus, with supply growth outpacing demand, leading to expected volatility in oil prices [17] - Chemicals faced challenges from global overcapacity and tariff uncertainties, impacting pricing and margins [18] Company Strategy and Development Direction - The company follows a two-pillar strategy: strengthening the foundation business and positioning for long-term growth and transformation [2][4] - Progress in renewable energy includes securing over 1.2 GW in South Africa, with a target of 2 GW by 2030 [30][31] - The focus on decarbonization is pragmatic, aiming to reduce emissions while ensuring energy security and affordability [30][33] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the volatile business environment and emphasized the importance of execution and delivery against commitments [4][5] - There is cautious optimism for recovery in selective end markets, although the pace of decline in chemicals is slowing [18] - The company remains committed to reducing net debt and improving cash generation despite macroeconomic uncertainties [22][28] Other Important Information - The company invested approximately ZAR 200 million in social programs over the past six months, reflecting its commitment to community upliftment [14] - The company has made significant progress in safety measures, with improvements in leading indicators despite a tragic fatality [8] Q&A Session Questions and Answers Question: Synfuels volumes and guidance for the next financial year - Management noted that the annualized run rate in the second quarter was about 7.6 million tons, with maintenance scheduled next year [39][42] Question: Carbon tax suspension proposal - Management emphasized the importance of a carbon tax for protecting South Africa's interests and proposed a recycling mechanism for the tax [40][44] Question: MRG pricing submission and its impact on revenue - Management confirmed that the submitted pricing would be slightly more expensive than current gas, with CapEx included in the overall profile [41][46] Question: De-gearing guidance and CapEx concerns - Management reiterated the commitment to reduce net debt below $3.7 billion by year-end, despite challenges in the second half [55][61] Question: Medium-term notes repayment strategy - Management explained the decision to repay medium-term notes was part of a proactive approach to capital structure management [56][64]

Financial Data and Key Metrics Changes - The overall financial performance showed a decline in Adjusted EBITDA year-on-year, reflecting weaker macro conditions, with a gross margin decrease of 6% due to a 17% lower Rand oil price and continued pressure in chemicals pricing [8][24][25] - Net debt ended at $3.8 billion, slightly above the full-year target, but the company remains on track to achieve net debt below $3.7 billion by year-end [6][23] - Free cash flow ended positive for the first time in four years, with a more than 100% improvement from the prior period [24] Business Line Data and Key Metrics Changes - In the Southern Africa value chain, mining EBITDA was lower due to the phaseout of export coal sales, but additional income was realized from leasing coal terminal capacity [26] - Fuels EBITDA increased, supported by higher refining margins and product differentials, with improved operational performance at Secunda and increased utilization at Natref [27] - Chemicals EBITDA generation remains under pressure across Africa and America, reflecting lower prices and weaker margins, while Eurasia saw margin improvement due to a value-over-volume strategy [27] Market Data and Key Metrics Changes - The Brent crude oil price was down 14% year-on-year, contributing to a 17% decline in the Rand oil price, with the oil market remaining in surplus [16][17] - The macroeconomic environment remains volatile, with geopolitical uncertainty expected to persist, impacting oil price volatility [16][17] Company Strategy and Development Direction - The company follows a two-pillar strategy: strengthening the foundation business and positioning for long-term growth and transformation [2][3] - Progress has been made in renewable energy, securing over 1.2 gigawatts in South Africa, with a target of 2 gigawatts by 2030 [6][31] - The focus is on decarbonization while safeguarding energy security and affordability, with a commitment to value-accretive pathways [31][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment but emphasized improvements in cash flow generation and operational execution [16][24] - The company is optimistic about achieving its ramp-up towards FY 2028, with ongoing restoration programs for gasifiers showing promising results [48] - There is cautious optimism for recovery in the chemicals market, with selective end markets stabilizing [17][27] Other Important Information - The company invested approximately ZAR 200 million in social programs over the past six months, reflecting its commitment to long-term value creation and positive social impact [14] - The company has secured a EUR 350 million grant for a sustainable aviation fuel project in Germany, supporting its growth in sustainable businesses [34] Q&A Session Questions and Answers Question: Can you comment on Synfuels volumes and guidance for the next financial year? - Management indicated that the annualized run rate in the second quarter was about 7.6 million tons, with maintenance scheduled next year, and emphasized the importance of coal quality and gasifier maintenance in achieving guidance [40][42] Question: What is the company's view on the proposed carbon tax suspension? - Management expressed that while the carbon tax was instituted to protect against external tariffs, they advocate for a recycling mechanism to support the transition to lower emissions [44] Question: How does the company plan to manage its de-gearing guidance amidst a stronger rand and lower refining margins? - Management confirmed the commitment to reducing net debt below $3.7 billion by year-end, emphasizing free cash flow generation and strict cost control [56][62]

Financial Data and Key Metrics Changes - The company reported a Core FFO growth of 2.5% in Q4 2025 and 1.1% for the full year, despite challenging operating conditions [5] - Same-store revenue growth returned to positive at 0.4% in Q4 2025, compared to only two markets achieving this in Q4 2024 [5] - Same-store NOI growth was 0.1% for the quarter, with operating expenses increasing only 1.1% [9][10] Business Line Data and Key Metrics Changes - The company strategically repurchased approximately $141 million of common shares and closed on 27 operating stores for $305 million, totaling 69 stores for $826 million for the year [6] - The company added 379 stores and 281 net new stores to its managed portfolio, bringing the total to 1,856 stores [7] Market Data and Key Metrics Changes - In Q4 2025, 16 of the top 20 markets experienced positive year-over-year move-in rates, contributing to revenue growth [5] - As of mid-February 2026, occupancy was at 92.5%, down 40 basis points year-over-year, while rates for new customers increased slightly over 6% [20] Company Strategy and Development Direction - The company aims to capitalize on improving market fundamentals and expects gradual performance acceleration in 2026 [8] - The focus remains on a diversified external growth platform, with most acquisitions expected to be in joint venture formats to enhance returns [30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in storage fundamentals, with guidance for 2026 same-store revenue ranging from -0.5% to +1.5% [11] - The company does not anticipate significant changes in the housing market or pricing restrictions in Los Angeles County affecting operations [11] Other Important Information - The company maintains a strong balance sheet with 93% of total debt at fixed rates and a weighted average interest rate of 4.3% [10] - Management highlighted the importance of job growth and supply dynamics as key drivers for the storage industry [43] Q&A Session Summary Question: Same-store revenue guidance and expectations - Management indicated that the midpoint of guidance implies generally flat same-store revenue growth, with potential for acceleration or deceleration based on market conditions [16][18] Question: Trends in street rates - Management confirmed that trends observed in Q4 2025 continued into early 2026, with positive signals in occupancy and new customer rates [20] Question: Expense guidance and confidence - Management attributed lower expense growth expectations to normalizing property taxes and improved efficiencies in other areas [25][28] Question: Acquisition volume guidance - Management clarified that most acquisitions in 2026 will be in joint venture formats to enhance returns, leading to a lower guidance number compared to previous years [30] Question: Regulatory environment impact - Management noted that recent regulatory changes in California have not significantly affected leasing activity, and they remain prepared to address potential regulatory challenges [41][51] Question: Discounting strategy and promotional environment - Management explained that their discounting strategy is channel-based and will remain unchanged unless data indicates a need for adjustment [64] Question: Use of AI in operations - Management discussed the integration of AI in pricing models and marketing strategies, emphasizing its potential to enhance operational efficiency [67] Question: Future of store managers - Management affirmed the importance of store managers in customer interactions and asset management, indicating no plans to eliminate these roles [96][98]

Financial Data and Key Metrics Changes - The company reported a positive Core FFO growth of 2.5% in Q4 2025 and 1.1% for the full year, despite challenging operating conditions [5] - Same-store revenue growth returned to positive at 0.4% in Q4 2025, compared to only two markets achieving this in Q4 2024 [5] - Same-store NOI growth was 0.1% for the quarter, with operating expenses increasing only 1.1% [9][10] Business Line Data and Key Metrics Changes - The company strategically repurchased approximately $141 million of common shares and closed on 27 operating stores for $305 million, totaling 69 stores for $826 million for the year [6] - The managed portfolio grew to 1,856 stores, with 379 stores added and 281 net new stores for the year [7] Market Data and Key Metrics Changes - In Q4, 16 of the top 20 markets experienced positive year-over-year move-in rates, contributing to revenue growth [5] - As of mid-February 2026, occupancy was at 92.5%, down 40 basis points year-over-year, while rates for new customers increased slightly over 6% [20] Company Strategy and Development Direction - The company aims to capitalize on improving market fundamentals and expects gradual performance acceleration in 2026 [8] - The strategy includes a focus on joint ventures for acquisitions to enhance returns and maintain a conservative balance sheet [30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in storage fundamentals, with guidance for same-store revenue growth in 2026 ranging from -0.5% to +1.5% [11] - The company does not anticipate significant changes in the housing market or pricing restrictions in Los Angeles County impacting their outlook [11] Other Important Information - The company has a strong balance sheet with 93% of total debt at fixed rates and a weighted average interest rate of 4.3% [10] - Management highlighted the importance of job growth and supply dynamics as key drivers for the storage industry [44] Q&A Session Summary Question: Same-store revenue guidance and trends - Management indicated that the midpoint of guidance implies generally flat same-store revenue growth, with potential for both acceleration and deceleration depending on market conditions [16][17] Question: Update on street rate trends - Management confirmed that trends from Q4 continued into early 2026, with positive signals in occupancy and new customer rates [20] Question: Confidence in lower expense guidance - Management attributed lower expense guidance to normalizing property taxes and improved efficiencies in other areas [26][28] Question: Acquisition volume guidance - The company expects most acquisitions in 2026 to be in joint venture formats to enhance returns, with flexibility to adjust guidance based on market opportunities [30] Question: Impact of regulatory changes in California - Management noted that recent legislation did not significantly affect leasing activity, as their disclosure practices were already robust [42] Question: Interplay between rate and occupancy - Management clarified that pricing decisions are made dynamically based on occupancy and market conditions, rather than a fixed strategy [50] Question: ECRI strategy and customer behavior - Management did not disclose specifics on ECRI contributions but indicated that it remains a competitive advantage [82] Question: Supply expectations and market exposure - Management expects a modest reduction in new store deliveries, particularly in oversupplied markets, based on internal and external data sources [88][89]

Financial Data and Key Metrics Changes - The company reported a Core FFO growth of 2.5% in Q4 2025 and 1.1% for the full year, despite challenging operating conditions [5] - Same-store revenue growth returned to positive at 0.4% in Q4 2025, compared to only two markets achieving this in Q4 2024 [5] - Same-store NOI growth was 0.1% for the quarter, with operating expenses increasing by only 1.1% [9][10] Business Line Data and Key Metrics Changes - The company strategically repurchased approximately $141 million of common shares and closed on 27 operating stores for $305 million, totaling 69 stores for $826 million for the year [6] - The managed portfolio grew to 1,856 stores, with 379 stores added in 2025 [7] Market Data and Key Metrics Changes - In Q4 2025, 16 of the top 20 markets experienced positive year-over-year move-in rates, contributing to revenue growth [5] - As of mid-February 2026, occupancy was at 92.5%, down 40 basis points year-over-year, while rates for new customers increased slightly over 6% [19] Company Strategy and Development Direction - The company aims to gradually accelerate performance as market fundamentals improve through 2026, with a focus on maintaining a flexible and conservative balance sheet [11] - The guidance for 2026 reflects a slow recovery in storage fundamentals, with same-store revenue expected to range from -0.5% to +1.5% [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positioning going into 2026, citing improvements in new customer move-in rates and same-store revenue [8] - The company does not anticipate significant changes in the housing market or pricing restrictions in Los Angeles County affecting their outlook [11] Other Important Information - The company has a low leverage balance sheet, with 93% of total debt at fixed rates and a weighted average interest rate of 4.3% [10] - The company is actively using AI and machine learning to enhance operational efficiency and marketing strategies [66][67] Q&A Session Summary Question: Same-store revenue guidance interpretation - Management clarified that the midpoint of guidance implies generally flat same-store revenue growth, with potential for acceleration or deceleration based on market trends [15][16] Question: Trends in street rates - Management reported that trends observed in Q4 2025 continued into early 2026, with occupancy and rates showing positive signals [19] Question: Confidence in lower expense guidance - Management attributed lower expense guidance to normalizing property taxes and improved efficiencies in other expense categories [24][25] Question: Acquisition volume guidance - The company expects most acquisitions in 2026 to be in joint venture formats, which may lower capital requirements while enhancing returns [27][28] Question: Transition of street rates to same-store NOI - Management noted that it takes time for new rates to impact same-store NOI due to customer churn rates [34][36] Question: Regulatory environment impact - Management indicated that recent regulatory changes in California have not significantly affected leasing activity [40][41] Question: Job growth as a demand driver - Management highlighted job growth as a key factor for self-storage performance, particularly in Sun Belt markets [42] Question: Discounting strategy - The company employs a channel-based discounting strategy, with selective discounts offered based on occupancy and unit type [63] Question: AI and operational efficiencies - Management discussed the use of AI for both external marketing and internal operations, indicating a focus on leveraging technology for efficiency [66][67] Question: Supply expectations - Management expects a continued incremental reduction in new store deliveries, particularly in oversupplied markets [85][86]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported Core FFO per share of $0.87, reflecting a year-over-year growth of 5.4% [9] - For the full year 2025, net income attributable to common shareholders was $439 million, or $1.18 per diluted share, with Core FFO per share of $1.87, also representing a 5.4% year-over-year growth [12] - The company generated quarterly net income of $123.8 million, or $0.33 per diluted share, with quarterly Core FFO per share of $0.47, marking a 4.1% year-over-year growth [11] Business Line Data and Key Metrics Changes - The company delivered 490 homes from its AMH Development Program in Q4 2025, contributing to over 2,300 homes for the full year [12] - In 2025, the company sold 1,827 properties for total net proceeds of approximately $570 million, with an average disposition cap rate in the high 3% [12][13] - The company plans to deliver around 1,900 newly constructed homes in 2026, focusing on in-house development [8] Market Data and Key Metrics Changes - The company noted that the average occupied days for the same-home portfolio was 95% [9] - For January 2026, new renewal and blended spreads were reported at -1%, 3.5%, and 2.4% respectively [9] - The company highlighted that the demand for AMH products remains strong, despite challenges from elevated supply levels in certain markets [28] Company Strategy and Development Direction - The company is focused on addressing housing affordability and is actively engaged with policymakers to tackle this issue [5][6] - The strategy emphasizes quality housing and exceptional resident experience, with a commitment to in-house development to meet growing demand [7][8] - The company plans to strategically moderate its development activities in response to current capital market conditions, while still aiming to deploy approximately $750 million in total capital for 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed that there is a growing need for high-quality housing in America and that the company is committed to meeting this demand [10] - The outlook for 2026 anticipates a flatter seasonal curve for rate growth and occupancy than typically expected, with a focus on maintaining occupancy levels [9][10] - Management acknowledged the challenges posed by stubborn supply levels and emphasized the importance of monitoring market conditions closely [28][46] Other Important Information - The company has a new $500 million share repurchase authorization approved by the board, reflecting its commitment to capital deployment [18] - The company expects Core FFO per share and unit for 2026 to be in the range of $1.89-$1.95, indicating a year-over-year growth of 2.7% at the midpoint [15] Q&A Session Summary Question: Why is the company expecting a flatter occupancy and rent growth curve than normal? - Management indicated that the leasing season is starting slightly delayed and that they are focused on building occupancy throughout the season, expecting a flatter peak [22][24] Question: What are the most significant variables affecting guidance for the year? - Management noted that supply levels across various housing types are stubbornly elevated, impacting the overall market dynamics [28] Question: Can you provide insights on the development pipeline and yields? - Management reported that the going-in delivery development yields were slightly lower than expected, around 5.3%, and similar yields are anticipated for 2026 [33] Question: How is the company addressing the political environment and advocacy costs? - Management confirmed that advocacy costs are a structural component of their cost structure, with expectations to incur these costs in 2026 [95][96] Question: What is the impact of supply pressure on strategy moving forward? - Management highlighted that while demand for AMH products remains strong, the company is closely monitoring supply pressures in various markets [28][46]

Financial Data and Key Metrics Changes - In Q4 2025, RevPAR was approximately $182, reflecting a nearly 1% year-over-year increase, or nearly 3% when excluding the Royal Palm [20] - For the full year, RevPAR declined 2% versus 2024, while hotel adjusted EBITDA margin was 26.5%, a reduction of 130 basis points from the prior year [21] - Core hotel adjusted EBITDA margin improved by 230 basis points to 30%, contrasting with a 280 basis point contraction to 10% in the non-core portfolio [20][21] Business Line Data and Key Metrics Changes - The core portfolio delivered a RevPAR increase of 6% to nearly $216, significantly outperforming the non-core portfolio by nearly 1,500 basis points [20] - Q4 group revenue for the core portfolio increased 13% year-over-year, with double-digit growth in banquet and catering revenues across key markets [11] - The Royal Palm renovation is expected to generate a 15%-20% return on invested capital, with projected EBITDA doubling from $14 million to nearly $28 million once stabilized [16] Market Data and Key Metrics Changes - Hawaii's RevPAR growth is expected to be on the higher end of the 2% range, with mid-single-digit EBITDA growth anticipated for the Hawaiian properties [37] - Orlando's Bonnet Creek complex achieved record Q4 RevPAR, up nearly 9% year-over-year, driven by a 15% increase in group revenues [13] - New York delivered its highest Q4 group revenue in hotel history, up over 8% year-over-year [14] Company Strategy and Development Direction - The company is focused on reshaping its portfolio by concentrating ownership in 21 core hotels with superior growth prospects and aggressively exiting non-core assets [6][7] - In 2025, the company executed over $120 million in non-core sales at a blended multiple of 21x, with a goal to materially reduce exposure to non-core properties by year-end [9] - The company plans to complete a comprehensive redevelopment of the Royal Palm and launch a full-scale renovation of the Ali'i Tower at Hilton Hawaiian Village [24] Management's Comments on Operating Environment and Future Outlook - The management remains optimistic about the U.S. economy's firm footing, with expectations of modest growth and easing inflation supporting consumer demand [16] - The company anticipates a multi-year recovery in Hawaii, with demand trends forecasted to improve as renovations are completed [12] - Guidance for 2026 includes a RevPAR growth range of flat to +2%, with cautious expectations due to potential geopolitical or macroeconomic volatility [28] Other Important Information - The company returned a total of $245 million of capital in 2025, including $200 million in dividends and $45 million in share repurchases [32] - As of year-end 2025, the company's liquidity was approximately $2 billion, including $200 million in cash [25] Q&A Session Summary Question: Earnings trajectory for Hawaii properties - Management indicated that Hawaii properties should see mid-single-digit EBITDA growth, with RevPAR growth expected to be around 2% [37] Question: Sequential change in Hilton Hawaiian Village performance - Management noted a 37% decrease in group pace for Q1, impacting expected performance [45] Question: Timeline for Miami's Royal Palm reopening and World Cup demand - Management expressed confidence in meeting the June reopening target and capturing World Cup demand, although they remain conservative in their estimates [50] Question: Non-core asset sales and potential for core hotel sales - Management emphasized the focus on non-core asset sales, noting that core hotels account for 90% of EBITDA and value, making them less likely to be sold [70] Question: Impact of New York labor contract negotiations - Management is optimistic about reaching an agreement without disruptions, especially with the upcoming World Cup [92]

Financial Data and Key Metrics Changes - In Q4 2025, RevPAR was approximately $182, reflecting a nearly 1% year-over-year increase, or nearly 3% when excluding the Royal Palm [20] - For the full year, RevPAR declined 2% versus 2024, while hotel adjusted EBITDA margin was 26.5%, a reduction of 130 basis points from the prior year [21] - Core hotel adjusted EBITDA margin improved by 230 basis points to 30%, contrasting with a 280 basis point contraction in the non-core portfolio [20][21] Business Line Data and Key Metrics Changes - The core portfolio delivered a RevPAR increase of 6% to nearly $216, significantly outperforming the non-core portfolio by nearly 1,500 basis points [20] - Fourth quarter group revenue for the core portfolio increased 13% year-over-year, with double-digit growth in banquet and catering revenues across key markets [11] - The Royal Palm renovation is expected to generate a 15%-20% return on invested capital, with projected EBITDA doubling from $14 million to nearly $28 million once stabilized [16] Market Data and Key Metrics Changes - The core portfolio outperformed the non-core hotels by an average of 480 basis points in 2025, reinforcing the company's strategic focus [10] - Hawaii is expected to be a significant contributor to earnings growth, with a multiyear recovery anticipated as demand trends improve [12] - New York delivered its highest fourth quarter group revenue in hotel history, up over 8% year-over-year, indicating strong market performance [14] Company Strategy and Development Direction - The company is focused on reshaping its portfolio by concentrating ownership in 21 core hotels with superior growth prospects and aggressively exiting non-core assets [6][8] - Over $120 million in non-core sales were executed at a blended multiple of 21x, with a strong track record of successfully recycling capital [7] - The company aims to complete its transition to a streamlined portfolio of high-quality hotels located in premium gateway cities and resort markets [18] Management's Comments on Operating Environment and Future Outlook - The U.S. economy remains on firm footing, with modestly higher growth expectations and easing inflation, which should support consumer demand [16] - The company remains cautious in its guidance due to potential geopolitical or macroeconomic volatility impacting booking decisions [17] - Management is optimistic about the setup for 2026, with anticipated demand boosts from major events like the World Cup [17] Other Important Information - The company invested nearly $300 million across the portfolio in 2025, with a planned reduction in capital investment for 2026 to $230 million-$260 million [22][24] - As of year-end 2025, liquidity was approximately $2 billion, including $200 million in cash and $1 billion in available capacity under the revolver [25] - The company returned a total of $245 million of capital in 2025, including $200 million in dividends and $45 million in share repurchases [32] Q&A Session Summary Question: Earnings trajectory for Hawaii properties - Management indicated that Hawaii properties should see mid-single-digit EBITDA growth, with RevPAR growth expected to be on the higher end of the 2% range [36][38] Question: Sequential change in Hilton Hawaiian Village performance - Management noted a 37% decrease in group pace for Q1, impacting expected performance despite a strong Q4 [45] Question: Non-core asset sales and potential for core hotel sales - Management emphasized a focus on non-core asset sales, with core hotels accounting for 90% of EBITDA and value, making them less likely to be sold [70][72] Question: Impact of World Cup on Miami property - Management expressed confidence in capturing demand from the World Cup, with the Royal Palm expected to open in early June [49][75] Question: Future growth and potential acquisitions - Management is optimistic about transitioning to an offensive strategy post non-core asset sales, with potential for acquisitions in the future [81][82]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported Core FFO per share of $0.87, reflecting a year-over-year growth of 5.4% [9] - For the full year 2025, net income attributable to common shareholders was $439 million, or $1.18 per diluted share, with Core FFO per share of $1.87, also representing a 5.4% year-over-year growth [12] - The company sold 1,827 properties in 2025, generating approximately $570 million in net proceeds, with an average disposition cap rate in the high 3% [12][13] Business Line Data and Key Metrics Changes - The company delivered 490 homes from its development program in Q4 2025, totaling over 2,300 homes for the full year [12] - The Same-Home portfolio's average occupancy was reported at 95% for January 2026, with expectations for a flatter seasonal curve for rate growth and occupancy in 2026 [9][10] Market Data and Key Metrics Changes - The company noted that the demand for single-family rentals remains strong, with approximately 30% of move-outs in 2025 attributed to residents purchasing homes [7] - The company is experiencing supply pressures in certain markets, particularly in San Antonio and Phoenix, where inventory levels remain elevated [45] Company Strategy and Development Direction - The company plans to deliver around 1,900 newly constructed homes in 2026, focusing on in-house development to meet growing demand for single-family rentals [8][17] - The company is taking a patient approach to share repurchases, with a new $500 million share repurchase authorization approved by the board [18] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of addressing housing affordability and the role of single-family rentals in the housing ecosystem [5][6] - The company anticipates a challenging operating environment in 2026, with expectations for a flatter occupancy and rent growth curve compared to previous years [10][20] Other Important Information - The company expects Core FFO per share and unit for 2026 to be in the range of $1.89 to $1.95, indicating a year-over-year growth of 2.7% at the midpoint [15] - Property tax growth is expected to be around 3% in 2026, which is below the long-term average of 4-5% [38] Q&A Session Summary Question: Why is the company expecting a flatter occupancy and rent growth curve? - Management indicated that the leasing season is starting slightly delayed and that they are focused on building occupancy throughout the leasing season [21][22] Question: What are the most significant variables affecting guidance? - Management noted that supply levels across various housing types are stubbornly elevated, impacting occupancy and lease-up times [26][27] Question: Can you provide insights on the development pipeline and yields? - The company reported that development yields for 2026 are expected to be similar to 2025, around 5.3%, influenced by current rent pressures [32] Question: How is the company addressing the political environment and advocacy costs? - Management confirmed that advocacy costs are a structural component of their cost structure, with expectations to incur these costs in 2026 [95][96] Question: What is the impact of supply pressure on strategy? - Management acknowledged that while demand for their products remains strong, supply pressures in certain markets are leading to extended lease-up times [27][45]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a Core FFO per share of $0.87, reflecting a year-over-year growth of 5.4% [7] - For the full year 2025, net income attributable to common shareholders was $439 million, or $1.18 per diluted share, with Core FFO per share at $1.87, also representing a 5.4% year-over-year growth [10] - The company closed 2025 with a net debt to Adjusted EBITDA ratio of 5.2 times, and a cash balance of approximately $110 million [11] Business Line Data and Key Metrics Changes - The AMH Development Program delivered 490 homes in Q4 2025, contributing to over 2,300 homes for the full year, enhancing housing stock in 14 markets [10] - The company sold 1,827 properties in 2025, generating net proceeds of approximately $570 million, with an average disposition cap rate in the high 3% [11] Market Data and Key Metrics Changes - The company noted a downward pressure on rates and occupancy due to seasonal demand moderation and supply challenges, with January 2026 showing new renewal and blended spreads of -1%, 3.5%, and 2.4% respectively [7] - The average occupied days for the same-home portfolio was reported at 95% [7] Company Strategy and Development Direction - The company is focusing on ground-up development to meet the growing demand for single-family rentals, with plans to deliver around 1,900 newly constructed homes in 2026 [6] - The strategy emphasizes providing quality housing and exceptional resident experiences, with a commitment to working with policymakers on housing affordability [4][5] Management's Comments on Operating Environment and Future Outlook - Management highlighted a growing need for high-quality housing in America and expressed confidence in the company's ability to navigate the current challenging environment [8] - The outlook for 2026 anticipates a flatter seasonal curve for rate growth and occupancy, with expectations for Same-Home Core NOI growth of 2% at the midpoint [13] Other Important Information - The company has a new $500 million share repurchase authorization, reflecting a strategic approach to capital deployment amid market uncertainties [16] - Management indicated that property tax growth is expected to be around 3% in 2026, which is below the long-term average [36] Q&A Session Summary Question: Why is the company expecting a flatter occupancy and rent growth curve? - Management noted that the leasing season is starting slightly delayed and emphasized a focus on building occupancy throughout the season, expecting to hold occupancy levels into the latter part of the year [19][20] Question: What are the key variables affecting the guidance for the year? - Management highlighted the stubbornly elevated supply levels across residential markets as a significant factor, impacting lease-up times and overall market dynamics [25][26] Question: Can you provide insights on the development pipeline and yields? - The company expects development yields to be around 5.3% for 2026, similar to 2025, influenced by current rent pressures [30] Question: How is the company addressing the political environment and potential caps on single-family rentals? - Management is actively engaging with policymakers and emphasizes the importance of single-family rentals in addressing housing supply shortages [54][55] Question: What constraints exist around dispositions? - Management indicated that tax planning and the timing of home sales are key considerations, with a focus on maintaining a strong market presence [96][97]