Attached files
file | filename |
---|---|
8-K - 8-K - American Homes 4 Rent | a14-23465_18k.htm |
EX-99.1 - EX-99.1 - American Homes 4 Rent | a14-23465_1ex99d1.htm |
EX-99.2 - EX-99.2 - American Homes 4 Rent | a14-23465_1ex99d2.htm |
Exhibit 99.3
Third Quarter 2014
Supplemental Information Package
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 |
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 Companys 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.
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, |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
| |||||
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 |
|
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).
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, |
|
Dec 31, |
|
Mar 31, |
|
June 30, |
|
Sep 30, | |||||
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 outstandingbasic and diluted |
|
162,725,150 |
|
185,499,066 |
|
185,504,294 |
|
185,515,651 |
|
202,547,677 | |||||
|
|
|
|
|
|
|
|
|
|
| |||||
Net loss per sharebasic 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 sharebasic and diluted |
|
$ |
(0.05) |
|
$ |
(0.08) |
|
$ |
(0.07) |
|
$ |
(0.07) |
|
$ |
(0.11) |
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.
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 REITs 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.
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, |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
| |||||
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.
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, |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, | ||||||||||
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 |
|
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 |
|
Percentage |
|
Gross Book |
|
Percentage |
|
Gross Book |
|
Average |
|
Avg. Age |
|
Leased |
|
Occupancy | ||
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.
American Homes 4 Rent
Supplemental Information Package
Third Quarter 2014
Top 20 Markets Home Price Appreciation Trends
|
|
|
|
HPA Index (1) |
|
|
| ||||||||||||
Market |
|
Relative |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
HPA Index |
|
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.
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 |
|
Available for |
|
30+ Days |
|
90+ Days |
|
Average Annual |
| |
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.
American Homes 4 Rent
Supplemental Information Package
Third Quarter 2014
Acquisition, Renovation and Leasing Rates
(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.
American Homes 4 Rent
Supplemental Information Package
Third Quarter 2014
Portfolio Footprint Map
All properties in all markets are managed by AMH personnel.
American Homes 4 Rent
Supplemental Information Package
Third Quarter 2014
Debt Maturity Schedule
(Amounts in thousands)
(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 Companys election, provided there is no event of default and compliance with certain other terms.