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8-K - 8-K - American Homes 4 Renta14-23465_18k.htm
EX-99.1 - EX-99.1 - American Homes 4 Renta14-23465_1ex99d1.htm
EX-99.2 - EX-99.2 - American Homes 4 Renta14-23465_1ex99d2.htm

Exhibit 99.3

 

 

GRAPHIC

 

 

Third Quarter 2014

 

Supplemental Information Package

 

 

 

 

 

 

 

 

 

 

 

 

GRAPHIC

 



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Table of Contents

 

Summary

 

 Financial and Operating Highlights

3

 Fact Sheet

4

 Notes to Fact Sheet

5

 

 

Earnings

 

 Quarterly Consolidated Statements of Operations

6

 Funds from Operations and Core Funds from Operations

7

 Net Operating Income and Core Net Operating Income

9

 

 

Property Information

 

 Top 20 Markets Summary

11

 Top 20 Markets Home Price Appreciation Trends

12

 Leasing Experience

13

 

 

Operational Information

 

 Acquisition, Renovation and Leasing Rates

14

 Portfolio Footprint Map

15

 Lease Expirations

16

 

 

Other Information

 

 Debt Maturity Schedule

17

 

2



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Financial and Operating Highlights

 

Third Quarter 2014 Highlights

 

·                 Core funds from operations (“Core FFO”) (as defined) for the third quarter of 2014 were $38.5 million or $0.15 per FFO share.

 

·                 Net operating income from leased properties (“NOI”) for the quarter ended September 30, 2014, was $59.4 million, a 4.1% increase from $57.1 million for the quarter ended June 30, 2014.

 

·                 Total portfolio increased by 3,704 homes to 30,877 as of September 30, 2014, from 27,173 as of June 30, 2014.  As of September 30, 2014, the Company had 26,161 leased properties, an increase of 2,797 leased properties from June 30, 2014.

 

·                 Continued strong occupancy, with 94.1% of properties leased that have been previously leased or rent-ready for more than 90 days and total portfolio occupancy of 84.7%.

 

·                 In July 2014, completed the acquisition of Beazer Pre-Owned Rental Homes, Inc. (“Beazer Rental Homes”), which added 1,372 homes located in markets in Arizona, California, Florida and Nevada to the Company’s portfolio.

 

·                 Completed securitization transaction in September 2014, which raised gross proceeds of $487.7 million, with a duration-adjusted weighted-average coupon rate of 4.42% for a ten-year term.

 

3



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Fact Sheet

(Amounts in thousands, except share, per share and property data)

(Unaudited)

 

 

 

Sep 30,
2013

 

Dec 31,
2013

 

Mar 31,
2014

 

Jun 30,
2014

 

Sep 30,
2014

 

Operating Data - for the three months ended

 

 

 

 

 

 

 

 

 

 

 

Rents from single-family properties

 

$

47,364

 

$

61,843

 

$

73,761

 

$

88,871

 

$

104,210

 

Fees from single-family properties

 

$

1,476

 

$

1,409

 

$

1,358

 

$

1,889

 

$

1,529

 

Tenant charge-backs

 

$

323

 

$

1,218

 

$

1,890

 

$

3,138

 

$

4,282

 

Total revenues from single-family properties

 

$

49,163

 

$

64,470

 

$

77,009

 

$

93,898

 

$

110,021

 

Total revenues

 

$

49,463

 

$

64,890

 

$

77,278

 

$

94,304

 

$

110,393

 

Leased property operating expenses

 

$

17,579

 

$

24,470

 

$

29,266

 

$

36,790

 

$

50,583

 

Net operating income (1)

 

$

31,584

 

$

40,000

 

$

47,743

 

$

57,108

 

$

59,438

 

Net operating income margin(1)

 

64.2%

 

62.0%

 

62.0%

 

60.8%

 

54.0%

 

Core net operating income margin(1)

 

65.2%

 

65.0%

 

64.8%

 

63.6%

 

57.3%

 

G&A expense as % of total revenues

 

5.5%

 

5.7%

 

6.6%

 

6.0%

 

4.8%

 

Annualized G&A expense as % of total assets

 

0.28%

 

0.35%

 

0.45%

 

0.46%

 

0.38%

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Balance Sheet Information - at end of period

 

 

 

 

 

 

 

 

 

 

 

Single-family properties, net

 

$

3,530,122

 

$

3,861,422

 

$

4,218,654

 

$

4,483,794

 

$

5,117,743

 

Total assets

 

$

3,885,261

 

$

4,224,144

 

$

4,524,033

 

$

4,982,557

 

$

5,536,344

 

Outstanding borrowings under credit facility (2)

 

$

238,000

 

$

375,000

 

$

671,000

 

$

481,000

 

$

82,000

 

Asset-backed securitizations

 

$

-

 

$

-

 

$

-

 

$

480,970

 

$

993,058

 

Total liabilities

 

$

395,968

 

$

573,485

 

$

889,925

 

$

1,216,362

 

$

1,349,487

 

Total equity capitalization (3)

 

$

3,861,700

 

$

4,101,227

 

$

4,230,122

 

$

4,671,212

 

$

4,887,590

 

Total capitalization (4)

 

$

4,099,700

 

$

4,476,227

 

$

4,901,122

 

$

5,633,182

 

$

5,962,648

 

NYSE AMH Class A common share closing price

 

$

16.15

 

$

16.20

 

$

16.71

 

$

17.76

 

$

16.89

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Data - at end of period

 

 

 

 

 

 

 

 

 

 

 

Leased single-family properties

 

14,384

 

17,328

 

20,666

 

23,364

 

26,161

 

Single-family properties in acquisition process

 

549

 

731

 

805

 

577

 

611

 

Single-family properties being renovated

 

3,598

 

1,732

 

1,466

 

1,179

 

1,719

 

Single-family properties being prepared for re-lease (5)

 

n/a

 

281

 

508

 

656

 

295

 

Vacant single-family properties available for re-lease (5)

 

n/a

 

579

 

700

 

617

 

1,442

 

Vacant single-family properties available for initial lease

 

2,736

 

2,573

 

1,319

 

744

 

610

 

Single-family properties held for sale

 

-

 

44

 

41

 

36

 

39

 

Total single-family properties

 

21,267

 

23,268

 

25,505

 

27,173

 

30,877

 

Total portfolio occupancy

 

67.6%

 

74.5%

 

81.0%

 

86.0%

 

84.7%

 

Available for rent 30+ days occupancy (6)

 

89.6%

 

90.1%

 

92.1%

 

93.6%

 

93.2%

 

Available for rent 90+ days occupancy (7)

 

96.2%

 

94.5%

 

95.1%

 

94.7%

 

94.1%

 

Quarterly lease renewal rate

 

73.0%

 

73.4%

 

71.8%

 

72.0%

 

68.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per common share

 

$

-

 

$

0.05

 

$

0.05

 

$

0.05

 

$

0.05

 

Distributions declared per Series A preferred share

 

$

-

 

$

0.23

 

$

0.31

 

$

0.31

 

$

0.31

 

Distributions declared per Series B preferred share

 

$

-

 

$

-

 

$

0.35

 

$

0.31

 

$

0.31

 

Distributions declared per Series C preferred share

 

$

-

 

$

-

 

$

-

 

$

0.23

 

$

0.34

 

 

4



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Notes to Fact Sheet

 

(1)          Refer to Net Operating Income and Core Net Operating Income section for calculation details and related reconciliations to net income / (loss), as determined in accordance with Generally Accepted Accounting Principles (“GAAP”).

(2)          Our credit facility provides for borrowing capacity of up to $800 million and bears interest at 30 day LIBOR plus 2.75% (3.125% beginning in March 2017).  Borrowings are available until March 2015, which may be extended for an additional year subject to the satisfaction of certain financial covenant tests.  Upon expiration of the credit facility period, any outstanding borrowings will convert to a term loan through September 30, 2018.

(3)          Total equity capitalization includes common and preferred shares outstanding at the end of the respective periods and 13,787,292 Class A units, 31,085,974 Series C units, 4,375,000 Series D units and 4,375,000 Series E units.

(4)          Total capitalization includes equity capitalization, principal balance on asset-backed securitizations and borrowings outstanding under our credit facility at the end of the respective periods.

(5)          Single-family properties being prepared for re-lease and vacant single-family properties available for re-lease not measured as of September 30, 2013, due to an insignificant number of properties in turn-over process during such period.

(6)          Available for rent 30+ days occupancy is calculated at the end of each respective period as the number of leased properties divided by the number of leased properties after we have completed initial renovations or are available for rent for a period of greater than 30 days (i.e., occupancy percentage is net of vacancy associated with properties in turn).

(7)          Available for rent 90+ days occupancy is calculated at the end of each respective period as the number of leased properties divided by the number of leased properties after we have completed initial renovations or are available for rent for a period of greater than 90 days (i.e., occupancy percentage is net of vacancy associated with properties in turn).

 

5



 

American Homes 4 Rent

 

Supplemental Information Package

 

Third Quarter 2014

 

Quarterly Consolidated Statements of Operations

 

(Amounts in thousands, except share and per share data)

 

(Unaudited)

 

 

 

For the Three Months Ended

 

 

Sep 30,
2013

 

Dec 31,
2013

 

Mar 31,
2014

 

June 30,
2014

 

Sep 30,
2014

Revenues:

 

 

 

 

 

 

 

 

 

 

Rents from single-family properties

 

$

47,364

 

$

61,843

 

$

73,761

 

$

88,871

 

$

104,210

Fees from single-family properties

 

1,476

 

1,409

 

1,358

 

1,889

 

1,529

Tenant charge-backs

 

323

 

1,218

 

1,890

 

3,138

 

4,282

Other

 

300

 

420

 

269

 

406

 

372

Total revenues

 

49,463

 

64,890

 

77,278

 

94,304

 

110,393

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

 

 

 

 

 

 

 

 

Leased single-family properties

 

17,579

 

24,470

 

29,266

 

36,790

 

50,583

Vacant single-family properties and other

 

7,873

 

8,348

 

9,043

 

6,351

 

3,885

General and administrative expense

 

2,742

 

3,667

 

5,074

 

5,703

 

5,291

Interest expense

 

-

 

-

 

1,502

 

3,888

 

5,112

Noncash share-based compensation expense

 

153

 

473

 

532

 

612

 

751

Acquisition fees and costs expensed

 

496

 

814

 

452

 

919

 

14,550

Depreciation and amortization

 

24,043

 

33,160

 

35,131

 

38,325

 

44,855

Total expenses

 

52,886

 

70,932

 

81,000

 

92,588

 

125,027

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of Series E units

 

(438)

 

(1,619)

 

(2,756)

 

(4,944)

 

3,588

Remeasurement of Preferred shares

 

-

 

(1,810)

 

(457)

 

(141)

 

(1,750)

 

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations

 

(3,861)

 

(9,471)

 

(6,935)

 

(3,369)

 

(12,796)

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

Gain on disposition of single-family properties

 

-

 

-

 

-

 

-

 

-

Income from discontinued operations

 

-

 

-

 

-

 

-

 

-

Income from discontinued operations

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(3,861)

 

(9,471)

 

(6,935)

 

(3,369)

 

(12,796)

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest

 

3,798

 

3,888

 

3,620

 

4,212

 

3,382

Dividends on preferred shares

 

-

 

1,160

 

3,121

 

4,669

 

5,569

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(7,659)

 

$

(14,519)

 

$

(13,676)

 

$

(12,250)

 

$

(21,747)

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding–basic and diluted

 

162,725,150

 

185,499,066

 

185,504,294

 

185,515,651

 

202,547,677

 

 

 

 

 

 

 

 

 

 

 

Net loss per share–basic and diluted:

 

 

 

 

 

 

 

 

 

 

Loss from continuing operations

 

$

(0.05)

 

$

(0.08)

 

$

(0.07)

 

$

(0.07)

 

$

(0.11)

Income from discontinued operations

 

-

 

-

 

-

 

-

 

-

Net loss attributable to common shareholders per share–basic and diluted

 

$

(0.05)

 

$

(0.08)

 

$

(0.07)

 

$

(0.07)

 

$

(0.11)

 

6



 

American Homes 4 Rent

 

Supplemental Information Package

 

Third Quarter 2014

 

Funds from Operations and Core Funds from Operations

 

(Amounts in thousands, except share and per share information)

 

(Unaudited)

 

The following is a reconciliation of net loss attributable to common shareholders, determined in accordance with GAAP, to FFO and Core FFO for the three months ended September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014, and September 30, 2014 (amounts in thousands, except share and per share data):

 

 

 

For the Three Months Ended

 

 

Sep 30,

 

Dec 31,

 

Mar 31,

 

Jun 30,

 

Sep 30,

 

 

2013

 

2013

 

2014

 

2014

 

2014

Net loss attributable to common shareholders

 

$

 (7,659)

 

$

 (14,519)

 

$

 (13,676)

 

$

 (12,250)

 

$

 (21,747)

Adjustments:

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests in the Operating Partnership

 

4,028

 

3,718

 

3,715

 

4,140

 

3,583

Depreciation and amortization of real estate assets

 

23,211

 

31,702

 

33,827

 

36,793

 

43,153

Funds from operations

 

$

 19,580

 

$

 20,901

 

$

 23,866

 

$

 28,683

 

$

 24,989

Adjustments:

 

 

 

 

 

 

 

 

 

 

Acquisition fees and costs expensed

 

496

 

814

 

452

 

919

 

14,550

Noncash share-based compensation expense

 

153

 

473

 

532

 

612

 

751

Remeasurement of Series E units

 

438

 

1,619

 

2,756

 

4,944

 

(3,588)

Remeasurement of Preferred shares

 

-

 

1,810

 

457

 

141

 

1,750

Core funds from operations

 

$

 20,667

 

$

 25,617

 

$

 28,063

 

$

 35,299

 

$

 38,452

Weighted-average number of FFO shares (1)

 

216,348,416

 

239,122,332

 

239,127,560

 

239,138,917

 

256,170,943

FFO per weighted-average FFO share

 

$

 0.09

 

$

 0.09

 

$

 0.10

 

$

 0.12

 

$

 0.10

Core FFO per weighted-average FFO share

 

$

 0.10

 

$

 0.11

 

$

 0.12

 

$

 0.15

 

$

 0.15

 

 

(1)          Includes quarterly weighted average common shares outstanding and assumes full conversion of all Operating Partnership units outstanding, including 13,787,292 Class A units, 31,085,974 Series C units, 4,375,000 Series D units and 4,375,000 Series E units.

 

FFO is a non-GAAP financial measure that we calculate in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income or loss calculated in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships and joint ventures.

 

Core FFO is a non-GAAP financial measure that we use as a supplemental measure of our performance.  We compute Core FFO by adjusting FFO for (1) acquisition fees and costs expensed incurred with recent business combinations and the acquisition of properties with existing leases, (2) noncash share-based compensation expense and (3) noncash fair value adjustments associated with remeasuring our Series E units liability and Preferred shares derivative liability to fair value.

 

7



 

American Homes 4 Rent

 

Supplemental Information Package

 

Third Quarter 2014

 

Funds from Operations and Core Funds from Operations (continued)

 

We present FFO and FFO per FFO share because we consider FFO to be an important measure of the performance of real estate companies, as do many analysts in evaluating our Company.  We believe that FFO is a helpful measure of a REIT’s performance since FFO excludes depreciation, which is included in computing net income and assumes the value of real estate diminishes predictably over time.  We believe that real estate values fluctuate due to market conditions and in response to inflation.

 

We also believe that Core FFO and Core FFO per FFO share are helpful to investors as supplemental measures of the operating performance of our Company as they allow investors to compare our operating performance to prior reporting periods without the effect of certain items that, by nature, are not comparable from period to period.

 

FFO and Core FFO are not a substitute for net cash flow provided by operating activities or net loss per share, as determined in accordance with GAAP, as a measure of our liquidity, operating performance or ability to pay dividends.  FFO and Core FFO also are not necessarily indicative of cash available to fund future cash needs.  Because other REITs may not compute FFO and Core FFO in the same manner, FFO and Core FFO may not be comparable among REITs.

 

8



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Net Operating Income and Core Net Operating Income

(Amounts in thousands)

 

 

 

For the Three Months Ended

 

 

 

Sep 30,
2013

 

Dec 31,
2013

 

Mar 31,
2014

 

Jun 30,
2014

 

Sep 30,
2014

 

Net Operating Income

 

 

 

 

 

 

 

 

 

 

 

Rents from single-family properties

 

 $

47,364

 

 $

61,843

 

 $

73,761

 

 $

88,871

 

 $

104,210

 

Fees from single-family properties

 

1,476

 

1,409

 

1,358

 

1,889

 

1,529

 

Tenant charge-backs

 

323

 

1,218

 

1,890

 

3,138

 

4,282

 

Total revenues from single-family properties

 

49,163

 

64,470

 

77,009

 

93,898

 

110,021

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased property operating expenses

 

17,579

 

24,470

 

29,266

 

36,790

 

50,583

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income

 

 $

31,584

 

 $

40,000

 

 $

47,743

 

 $

57,108

 

 $

59,438

 

Net operating income margin

 

64.2%

 

62.0%

 

62.0%

 

60.8%

 

54.0%

(1)

 

 

 

 

 

 

 

 

 

 

 

 

Core Net Operating Income

 

 

 

 

 

 

 

 

 

 

 

Rents from single-family properties

 

 $

47,364

 

 $

61,843

 

 $

73,761

 

 $

88,871

 

 $

104,210

 

Fees from single-family properties

 

1,476

 

1,409

 

1,358

 

1,889

 

1,529

 

Bad debt expense

 

(417)

 

(1,748)

 

(1,423)

 

(962)

 

(2,044)

 

Core revenues from single-family properties

 

48,423

 

61,504

 

73,696

 

89,798

 

103,695

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased property operating expenses

 

17,579

 

24,470

 

29,266

 

36,790

 

50,583

 

Expenses reimbursed by tenant charge-backs

 

(323)

 

(1,218)

 

(1,890)

 

(3,138)

 

(4,282)

 

Bad debt expense

 

(417)

 

(1,748)

 

(1,423)

 

(962)

 

(2,044)

 

Core property operating expenses

 

16,839

 

21,504

 

25,953

 

32,690

 

44,257

 

 

 

 

 

 

 

 

 

 

 

 

 

Core net operating income

 

 $

31,584

 

 $

40,000

 

 $

47,743

 

 $

57,108

 

 $

59,438

 

Core net operating income margin

 

65.2%

 

65.0%

 

64.8%

 

63.6%

 

57.3%

(1)

 

 

(1)          Decreases in third quarter 2014 net operating income and core net operating income margins are attributable to:

·                   Higher turn-over costs associated with increased volume of lease expirations and tenant move-outs

·                   Increased repair and maintenance expenses as a result of seasonality and logistical inefficiencies

·                   Increased bad debt expense in connection with a higher number of expiring leases that were underwritten prior to internalization of our property management and leasing functions.

 

NOI is a supplemental non-GAAP financial measure that we define as rents and fees from single-family properties and tenant charge-backs, less property operating expenses for leased single-family properties.  Core NOI is also a supplemental non-GAAP financial measure that we define as rents and fees from single-family properties, net of bad debt expense, less property operating expenses for leased single-family properties, excluding expenses reimbursed by tenant charge-backs and bad debt expense.

 

NOI and Core NOI also exclude income from discontinued operations, remeasurement of preferred shares, remeasurement of Series E units, depreciation and amortization, acquisition fees and costs expensed, noncash share-based compensation expense, interest expense, general and administrative expense, property operating expenses for vacant single-family properties and other and other revenues.

 

9



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Net Operating Income and Core Net Operating Income (continued)

(Amounts in thousands)

 

We consider NOI to be a meaningful financial measure because we believe it is helpful to investors in understanding the operating performance of our leased single-family properties. Additionally, we believe Core NOI is helpful to our investors as it better reflects the operating margin performance of our leased single-family properties and excludes the impact of certain operating expenses that are reimbursed through tenant charge-backs.

 

NOI and Core NOI should be considered only as supplements to net loss as measures of our performance. NOI and Core NOI should not be used as measures of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. NOI and Core NOI also should not be used as substitutes for net loss or net cash flows from operating activities (as computed in accordance with GAAP).

 

The following is a reconciliation of NOI and Core NOI to net loss determined in accordance with GAAP:

 

 

For the Three Months Ended

 

 

Sep 30,
2013

 

Dec 31,
2013

 

Mar 31,
2014

 

Jun 30,
2014

 

Sep 30,
2014

Net loss

 

 $

(3,861

)

 

 $

(9,471

)

 

 $

(6,935

)

 

 $

(3,369

)

 

 $

(12,796

)

Income from discontinued operations

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Remeasurement of Preferred shares

 

-

 

 

1,810

 

 

457

 

 

141

 

 

1,750

 

Remeasurement of Series E units

 

438

 

 

1,619

 

 

2,756

 

 

4,944

 

 

(3,588

)

Depreciation and amortization

 

24,043

 

 

33,160

 

 

35,131

 

 

38,325

 

 

44,855

 

Acquisition fees and costs expensed

 

496

 

 

814

 

 

452

 

 

919

 

 

14,550

 

Noncash share-based compensation expense

 

153

 

 

473

 

 

532

 

 

612

 

 

751

 

Interest expense

 

-

 

 

-

 

 

1,502

 

 

3,888

 

 

5,112

 

General and administrative expense

 

2,742

 

 

3,667

 

 

5,074

 

 

5,703

 

 

5,291

 

Property operating expenses for vacant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

single-family properties and other

 

7,873

 

 

8,348

 

 

9,043

 

 

6,351

 

 

3,885

 

Other revenues

 

(300

)

 

(420

)

 

(269

)

 

(406

)

 

(372

)

Net operating income

 

 $

31,584

 

 

 $

40,000

 

 

 $

47,743

 

 

 $

57,108

 

 

 $

59,438

 

Tenant charge-backs

 

323

 

 

1,218

 

 

1,890

 

 

3,138

 

 

4,282

 

Expenses reimbursed by tenant charge-backs

 

(323

)

 

(1,218

)

 

(1,890

)

 

(3,138

)

 

(4,282

)

Bad debt expense excluded from operating expenses

 

417

 

 

1,748

 

 

1,423

 

 

962

 

 

2,044

 

Bad debt expense included in revenues

 

(417

)

 

(1,748

)

 

(1,423

)

 

(962

)

 

(2,044

)

Core net operating income

 

 $

31,584

 

 

 $

40,000

 

 

 $

47,743

 

 

 $

57,108

 

 

 $

59,438

 

 

10



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Top 20 Markets Summary

 

The table below summarizes certain information with respect to our top 20 markets as of September 30, 2014:

 

Market

 

Number of
Properties

 

Percentage
of Total
Properties

 

Gross Book
Value
($ millions)

 

Percentage
of Gross
Book Value

 

Gross Book
Value per
Property

 

Average
Sq. Ft.

 

Avg. Age
(years)

 

Leased
Properties

 

Occupancy
Percentage

Dallas-Fort Worth, TX

 

2,666

 

8.6%

 

$

422.8

 

8.0%

 

$

158,590

 

2,142

 

10.9

 

2,388

 

89.6%

Indianapolis, IN

 

2,530

 

8.2%

 

377.7

 

7.1%

 

149,289

 

1,923

 

12.1

 

2,024

 

80.0%

Greater Chicago area, IL and IN

 

1,828

 

5.9%

 

308.2

 

5.8%

 

168,600

 

1,893

 

13.0

 

1,428

 

78.1%

Atlanta, GA

 

1,790

 

5.8%

 

297.4

 

5.6%

 

166,145

 

2,135

 

13.7

 

1,574

 

87.9%

Cincinnati, OH

 

1,701

 

5.5%

 

289.8

 

5.5%

 

170,370

 

1,851

 

12.5

 

1,348

 

79.2%

Houston, TX

 

1,627

 

5.3%

 

280.6

 

5.3%

 

172,465

 

2,251

 

10.2

 

1,368

 

84.1%

Charlotte, NC

 

1,550

 

5.0%

 

263.7

 

5.0%

 

170,129

 

1,984

 

11.3

 

1,317

 

85.0%

Tampa, FL

 

1,445

 

4.7%

 

272.0

 

5.1%

 

188,235

 

2,002

 

10.8

 

1,316

 

91.1%

Phoenix, AZ

 

1,320

 

4.3%

 

211.1

 

4.0%

 

159,924

 

1,838

 

11.4

 

1,252

 

94.8%

Jacksonville, FL

 

1,247

 

4.0%

 

185.2

 

3.5%

 

148,516

 

1,922

 

10.6

 

1,048

 

84.0%

Nashville, TN

 

1,200

 

3.9%

 

246.4

 

4.7%

 

205,333

 

2,198

 

10.2

 

1,095

 

91.3%

Columbus, OH

 

1,119

 

3.6%

 

165.8

 

3.1%

 

148,168

 

1,827

 

13.3

 

920

 

82.2%

Raleigh, NC

 

1,116

 

3.6%

 

198.3

 

3.8%

 

177,688

 

1,894

 

10.4

 

910

 

81.5%

Orlando, FL

 

922

 

3.0%

 

155.4

 

2.9%

 

168,547

 

1,923

 

12.7

 

807

 

87.5%

Las Vegas, NV

 

907

 

2.9%

 

158.6

 

3.0%

 

174,862

 

1,865

 

12.0

 

843

 

92.9%

Salt Lake City, UT

 

840

 

2.7%

 

181.6

 

3.4%

 

216,190

 

2,167

 

13.1

 

670

 

79.8%

Austin, TX

 

582

 

1.9%

 

84.1

 

1.6%

 

144,502

 

1,855

 

10.4

 

453

 

77.8%

San Antonio, TX

 

514

 

1.7%

 

76.8

 

1.5%

 

149,416

 

2,021

 

10.1

 

413

 

80.4%

Greenville, SC

 

483

 

1.6%

 

81.0

 

1.5%

 

167,702

 

1,913

 

11.2

 

381

 

78.9%

Denver, CO

 

481

 

1.6%

 

123.1

 

2.3%

 

255,925

 

2,103

 

12.1

 

325

 

67.6%

All Other (1)

 

5,009

 

16.2%

 

905.8

 

17.1%

 

180,834

 

1,823

 

11.0

 

4,281

 

85.5%

Total / Average

 

30,877

 

100.0%

 

$

5,285.4

 

100.0%

 

$

171,176

 

1,967

 

11.6

 

26,161

 

84.7%

 

(1) Represents 21 markets in 15 states.

 

11



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Top 20 Markets Home Price Appreciation Trends

 

 

 

 

 

HPA Index (1)

 

 

 

Market

 

Relative
Weighting of
Top 20 Markets (2)

 

Dec 31,
2012 (3)

 

Mar 31,
2013

 

Jun 30,
2013

 

Sep 30,
2013

 

Dec 31,
2013

 

Mar 31,
2014

 

Jun 30,
2014

 

HPA Index
Appreciation

 

Dallas-Fort Worth, TX (4)

 

9.508%

 

100.0

 

100.6

 

105.9

 

107.2

 

108.6

 

109.8

 

112.9

 

12.9%

 

Indianapolis, IN

 

8.881%

 

100.0

 

104.2

 

107.8

 

110.3

 

106.9

 

109.0

 

112.4

 

12.4%

 

Greater Chicago area, IL and IN

 

7.679%

 

100.0

 

101.2

 

110.2

 

111.0

 

111.5

 

108.7

 

114.8

 

14.8%

 

Atlanta, GA

 

7.545%

 

100.0

 

103.8

 

111.0

 

114.0

 

114.9

 

120.1

 

122.4

 

22.4%

 

Nashville, TN

 

6.390%

 

100.0

 

102.3

 

107.5

 

108.4

 

110.5

 

110.6

 

116.0

 

16.0%

 

Houston, TX

 

6.312%

 

100.0

 

101.9

 

107.6

 

108.7

 

111.1

 

115.1

 

117.4

 

17.4%

 

Cincinnati, OH

 

6.119%

 

100.0

 

100.3

 

105.7

 

108.0

 

105.6

 

106.4

 

110.9

 

10.9%

 

Salt Lake City, UT

 

5.495%

 

100.0

 

103.9

 

109.6

 

109.9

 

109.4

 

110.2

 

115.7

 

15.7%

 

Tampa, FL

 

5.361%

 

100.0

 

99.7

 

107.5

 

110.5

 

112.0

 

113.1

 

113.7

 

13.7%

 

Charlotte, NC

 

5.354%

 

100.0

 

105.1

 

109.6

 

112.9

 

113.6

 

109.7

 

116.3

 

16.3%

 

Phoenix, AZ

 

5.270%

 

100.0

 

103.0

 

111.0

 

115.9

 

117.8

 

118.8

 

122.5

 

22.5%

 

Jacksonville, FL

 

4.776%

 

100.0

 

107.6

 

110.9

 

111.7

 

113.3

 

110.4

 

115.5

 

15.5%

 

Las Vegas, NV

 

4.371%

 

100.0

 

101.7

 

111.5

 

121.5

 

124.4

 

130.3

 

132.4

 

32.4%

 

Raleigh, NC

 

4.040%

 

100.0

 

103.1

 

105.7

 

107.3

 

106.2

 

108.2

 

110.9

 

10.9%

 

Columbus, OH

 

3.167%

 

100.0

 

102.4

 

107.7

 

111.5

 

109.2

 

111.1

 

114.8

 

14.8%

 

Orlando, FL

 

3.036%

 

100.0

 

99.8

 

107.5

 

109.9

 

110.2

 

112.0

 

115.1

 

15.1%

 

Tucson, AZ

 

1.867%

 

100.0

 

98.5

 

102.5

 

105.7

 

108.5

 

106.1

 

109.2

 

9.2%

 

Greensboro, NC

 

1.789%

 

100.0

 

100.8

 

104.7

 

104.8

 

103.1

 

105.1

 

110.5

 

10.5%

 

Austin, TX

 

1.550%

 

100.0

 

101.1

 

109.1

 

111.0

 

110.0

 

114.7

 

120.1

 

20.1%

 

San Antonio, TX

 

1.490%

 

100.0

 

99.1

 

100.4

 

100.1

 

100.7

 

104.6

 

107.6

 

7.6%

 

Total / weighted average

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15.9%

 

 

 

(1)          HPA Index reflects the House Price Index of the Federal Housing Finance Agency (“FHFA”), known as the Quarterly Purchase-Only Index, specifically the non-seasonally adjusted “Purchase-Only Index” for the “100 Largest Metropolitan Statistical Areas.” Updates to the Quarterly Purchase-Only Index are released by the FHFA on approximately the 20th day of the second month following quarter-end. Accordingly, information in the above table has been presented through June 30, 2014, as the third quarter 2014 Quarterly Purchase-Only Index will not be available until approximately the week of November 20, 2014.

(2)          Relative weighting of top 20 markets based on properties as of September 30, 2013, consistent with relative weighting used for purposes of computing the “HPA Factor” for our 5% Series A participating preferred shares, 5% Series B participating preferred shares and 5.5% Series C participating preferred shares as described in the prospectuses for those securities.

(3)          For the illustrative purposes of this table, the HPA Index has been indexed as of December 31, 2012 and, as such, a baseline index value of 100.0 has been assigned to each market as of such date.  The HPA Index values with respect to the other periods presented are relative measures calculated in relation to the baseline index value.

(4)          Our Dallas-Fort Worth, TX market is comprised of the Dallas-Plano-Irving and Fort Worth-Arlington Metropolitan Divisions, with each division being given equal weighting for purposes of determining the HPA Index.

 

12



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Leasing Experience

 

The table below summarizes our leasing experience through September 30, 2014:

 

 

Market

 

Leased (1)

 

Available for
Rent 30+
Days 
(2)

 

Available for
Rent 90+
Days 
(3)

 

30+ Days
Occupancy % 
(4)

 

90+ Days
Occupancy % 
(5)

 

Average Annual
Scheduled Rent
Per Property

 

Dallas-Fort Worth, TX

 

2,340

 

2,424

 

2,409

 

96.5%

 

97.1%

 

  $

17,951

 

Indianapolis, IN

 

2,018

 

2,306

 

2,270

 

87.5%

 

88.9%

 

15,372

 

Atlanta, GA

 

1,543

 

1,595

 

1,586

 

96.7%

 

97.3%

 

16,158

 

Greater Chicago area, IL and IN

 

1,399

 

1,549

 

1,510

 

90.3%

 

92.6%

 

19,839

 

Cincinnati, OH

 

1,331

 

1,497

 

1,472

 

88.9%

 

90.4%

 

17,151

 

Houston, TX

 

1,319

 

1,401

 

1,382

 

94.1%

 

95.4%

 

18,970

 

Charlotte, NC

 

1,299

 

1,356

 

1,347

 

95.8%

 

96.4%

 

16,279

 

Tampa, FL

 

1,297

 

1,375

 

1,365

 

94.3%

 

95.0%

 

18,443

 

Phoenix, AZ

 

1,240

 

1,306

 

1,306

 

94.9%

 

94.9%

 

13,396

 

Jacksonville, FL

 

1,016

 

1,105

 

1,091

 

91.9%

 

93.1%

 

15,696

 

All Other (6)

 

10,916

 

11,694

 

11,593

 

93.3%

 

94.2%

 

16,878

 

Total / Average

 

25,718

 

27,608

 

27,331

 

93.2%

 

94.1%

 

  $

16,931

 

 

 

(1)          Includes leases on properties for which we have completed renovations and excludes leases with tenants existing at the date of acquisition (“Stabilized Properties”)

(2)          Available for Rent 30+ Days represents the number of properties that have been leased after we have completed renovations or are available for rent (i.e., “rent-ready”) for a period of greater than 30 days.

(3)          Available for Rent 90+ Days represents the number of properties that have been leased after we have completed renovations or are available for rent (i.e., “rent-ready”) for a period of greater than 90 days.

(4)          Occupancy percentage is computed by dividing the number of leased properties by the number of properties available for rent 30+ days from the date of completing initial renovations (i.e., occupancy percentage is net of vacancy associated with properties in turn).

(5)          Occupancy percentage is computed by dividing the number of leased properties by the number of properties available for rent 90+ days from the date of completing initial renovations (i.e., occupancy percentage is net of vacancy associated with properties in turn).

(6)          Represents 31 markets in 19 states.

 

13



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Acquisition, Renovation and Leasing Rates

 

GRAPHIC

 

(1)          “Rent Ready” includes properties for which initial construction has been completed during each quarter. Q3 2014 includes 1,338 renovated properties acquired as part of the Beazer Rental Homes portfolio.

(2)          “Leases Signed” includes the number of initial leases signed each quarter (includes Pre-Existing Leases). Q3 2014 includes 1,236 leased properties acquired as part of the Beazer Rental Homes portfolio.

 

14



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Portfolio Footprint Map

 

All properties in all markets are managed by AMH personnel.

 

GRAPHIC

 

15



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Lease Expirations

 

GRAPHIC

 

16



 

American Homes 4 Rent

Supplemental Information Package

Third Quarter 2014

 

Debt Maturity Schedule

(Amounts in thousands)

 

GRAPHIC

 

(1)          Reflects borrowings outstanding under credit facility as of September 30, 2014, which become due (based on fully extended maturity date) on September 30, 2018.

(2)          Reflects fully extended maturity date of June 9, 2019, which is based on an initial two-year loan term and three, 12-month extension options, at the Company’s election, provided there is no event of default and compliance with certain other terms.

 

17