EX-99.3 4 amh1231178kexhibit993.htm EXHIBIT 99.3 Exhibit
a4q17suppreportcoverfina001.jpg


American Homes 4 Rent


Table of Contents
Summary
 
Earnings Press Release
Fact Sheet
 
 
Financial Information
 
Consolidated Statements of Operations
Funds from Operations
Core Net Operating Income – Total Portfolio
Same-Home Results – Quarterly and Full Year Comparisons
Same-Home Results – Sequential Quarterly History
Same-Home Results – Operating Metrics by Market
Same-Home Results – Historical Quarterly Trends - New Metrics
Consolidated Balance Sheets
Debt Summary, Maturity Schedule and Interest Expense Reconciliation
Capital Structure
 
 
Property Information
 
Top 20 Markets Summary
Leasing Performance
Scheduled Lease Expirations
Top 20 Markets Home Price Appreciation Trends
 
 
Other Information
 
Disposition Summary
ATM Share Issuance History
2018 Outlook
Defined Terms and Non-GAAP Reconciliations


 
 
 
 
 
2


 
American Homes 4 Rent

 

Earnings Press Release


American Homes 4 Rent Reports Fourth Quarter and Full Year 2017 Financial and Operating Results
AGOURA HILLS, Calif., Feb. 22, 2018—American Homes 4 Rent (NYSE: AMH) (the “Company”), a leading provider of high quality single-family homes for rent, today announced its financial and operating results for the quarter and full year ended December 31, 2017.
Highlights
•
Total revenues increased 6.7% to $242.8 million for the fourth quarter of 2017 from $227.6 million for the fourth quarter of 2016.
•
Net loss attributable to common shareholders totaled $22.0 million, and a $0.08 loss per diluted share, for the fourth quarter of 2017, compared to net income attributable to common shareholders of $2.4 million, and a $0.01 loss per diluted share, for the fourth quarter of 2016.
•
Core Funds from Operations attributable to common share and unit holders for the fourth quarter of 2017 was $89.4 million, or $0.26 per FFO share and unit, compared to $75.9 million, or $0.26 per FFO share and unit, for the fourth quarter of 2016.
•
Adjusted Funds from Operations attributable to common share and unit holders for the fourth quarter of 2017 was $79.8 million, or $0.23 per FFO share and unit, compared to $67.7 million, or $0.23 per FFO share and unit, for the same period in 2016.
•
Core Net Operating Income ("Core NOI") margin on Same-Home properties was 64.9% for the fourth quarter of 2017, compared to 65.2% for the same period in 2016.
•
Core NOI after capital expenditures from Same-Home properties increased by 1.5% year-over-year for the quarter ended December 31, 2017.
•
Same-Home portfolio leasing percentage increased to 95.7% as of December 31, 2017, from 95.2% as of September 30, 2017, while achieving 3.1% growth in average monthly realized rent per property for the fourth quarter of 2017, compared to the same period in 2016.
•
Redeemed the Series A and B participating preferred shares through a conversion into 12,398,276 Class A common shares (see "Capital Activities and Balance Sheet").
•
In February 2018, issued $500.0 million of 4.25% unsecured senior notes due 2028, which have been effectively hedged at 4.08% through the use of a treasury lock (see “Capital Activities and Balance Sheet”).

“American Homes 4 Rent completed a successful year, generating a 6% improvement in annual Core NOI after capital expenditures from our comparable Same-Home pool by improving Core NOI margins by 130 basis points to 64.5% through further efficiencies from our industry-leading, mature platform," stated David Singelyn, Chief Executive Officer. "We also obtained the first and only investment grade ratings in the single-family rental sector, and have demonstrated the benefit of those ratings in our inaugural issuance of unsecured corporate debt. Looking forward to 2018, I remain bullish on our future based on the strength of fundamentals in the single-family rental sector that provide us with a strong macro tailwind to further expand our existing portfolio cash flows, execute on our strategic external growth plans and create value for our shareholders.”
Fourth Quarter 2017 Financial Results
During the quarter, the Company released newly defined average occupancy, rental rate and capital expenditure metrics, which management believes provide better clarity into our underlying leasing results and operating performance. These metric changes include: (1) replacement of average occupancy percentage with average occupied days percentage, (2) replacement of average contractual monthly rent as of period end with average monthly realized rent per property and (3) additional disclosures around previously reported capital expenditures to distinguish between recurring capital expenditures and property enhancing capex.

 
 
 
 
 
3


 
American Homes 4 Rent

 

Earnings Press Release (continued)

Full definitions of these new metrics, along with historical quarterly disclosure under the new methodology can be found in the Company’s Fourth Quarter 2017 Earnings Release and Supplemental Information Package.
Net loss attributable to common shareholders totaled $22.0 million, and a $0.08 loss per diluted share, for the fourth quarter of 2017, compared to net income attributable to common shareholders of $2.4 million, and a $0.01 loss per diluted share, for the fourth quarter of 2016. This decrease was primarily attributable to the redemption of the Series A and Series B participating preferred shares through a conversion into Class A common shares, partially offset by higher revenues and lower interest expense.
Total revenues increased 6.7% to $242.8 million for the fourth quarter of 2017 from $227.6 million for the fourth quarter of 2016. Revenue growth was primarily driven by continued strong acquisition and leasing activity, as our average leased portfolio grew to 46,511 homes for the quarter ended December 31, 2017, compared to 44,772 homes for the quarter ended December 31, 2016.
Core NOI on our total portfolio increased 5.9% to $136.8 million for the fourth quarter of 2017, compared to $129.1 million for the fourth quarter of 2016. This increase was primarily due to growth in rental income resulting from a larger number of leased properties.
Core revenues from Same-Home properties increased 2.1% to $159.5 million for the fourth quarter of 2017, compared to $156.2 million for the fourth quarter of 2016. This growth was driven by a 3.1% increase in average monthly realized rents, offset by a 0.8% decline in average occupied days percentage caused by excess vacant inventory carried over from the third quarter of 2017. Note that we experienced strong leasing activity during the fourth quarter of 2017 and improved the leased percentage on Same-Home properties by 50 basis points to 95.7% as of December 31, 2017, from 95.2% as of September 30, 2017. Core property operating expenses from Same-Home properties increased 3.0% to $55.9 million for the fourth quarter of 2017, compared to $54.3 million for the fourth quarter of 2016. This increase was primarily attributable to the timing of property tax expense and increased R&M and turnover costs, net, due to labor and material cost increases and higher turnover costs associated with additional vacant homes.
Core NOI from Same-Home properties increased 1.7% to $103.6 million for the fourth quarter of 2017, compared to $101.8 million for the fourth quarter of 2016. After capital expenditures, Core NOI from Same-Home properties increased 1.5% to $97.9 million for the fourth quarter of 2017, compared to $96.4 million for the fourth quarter of 2016.
Core Funds from Operations attributable to common share and unit holders ("Core FFO attributable to common share and unit holders") was $89.4 million, or $0.26 per FFO share and unit, for the fourth quarter of 2017, compared to $75.9 million, or $0.26 per FFO share and unit, for the fourth quarter of 2016. Adjusted Funds from Operations attributable to common share and unit holders ("Adjusted FFO attributable to common share and unit holders") for the fourth quarter of 2017 was $79.8 million, or $0.23 per FFO share and unit, compared to $67.7 million, or $0.23 per FFO share and unit, for the fourth quarter of 2016. This improvement was primarily attributable to increases in rental revenue driven by a larger number of leased properties and higher rental rates.
Full Year 2017 Financial Results
Net loss attributable to common shareholders totaled $22.1 million, or $0.08 per diluted share, for the year ended December 31, 2017, compared to a net loss attributable to common shareholders of $33.5 million, or $0.14 per diluted share, for the year ended December 31, 2016. This improvement was primarily attributable to higher revenues and lower interest expense, partially offset by the redemption of the Series A and Series B participating preferred shares through a conversion into Class A common shares, higher property operating expenses and an increase in preferred dividends.

 
 
 
 
 
4


 
American Homes 4 Rent

 

Earnings Press Release (continued)

Total revenues increased 9.3% to $960.4 million for the year ended December 31, 2017, from $878.9 million for the year ended December 31, 2016. Revenue growth was primarily driven by continued strong acquisition and leasing activity, as our average leased portfolio grew to 45,839 homes for the year ended December 31, 2017, compared to 43,026 homes for the year ended December 31, 2016.
Core NOI on our total portfolio increased 11.6% to $531.7 million for the year ended December 31, 2017, compared to $476.6 million for the year ended December 31, 2016. This increase was primarily due to substantial growth in rental income resulting from a larger number of leased properties.
Core revenues from Same-Home properties increased 3.0% to $634.4 million for the year ended December 31, 2017, compared to $616.2 million for the year ended December 31, 2016. This growth was driven by a 3.1% increase in average monthly realized rents, offset by a 0.1% decline in average occupied days percentage. Core property operating expenses from Same-Home properties decreased 0.8% to $225.1 million for the year ended December 31, 2017, compared to $226.9 million for the year ended December 31, 2016. This improvement was driven by continued operating efficiencies in R&M and turnover costs, net and a reduction in property management expenses, net, partially offset by modest increases in property tax expense and HOA fees, net.
Core NOI from Same-Home properties increased 5.1% to $409.3 million for the year ended December 31, 2017, compared to $389.3 million for the year ended December 31, 2016. After capital expenditures, Core NOI from Same-Home properties increased 6.2% to $384.1 million for the year ended December 31, 2017, compared to $361.7 million for the year ended December 31, 2016.
Core FFO attributable to common share and unit holders was $327.0 million, or $1.02 per FFO share and unit, for the year ended December 31, 2017, compared to $282.1 million, or $0.97 per FFO share and unit, for the year ended December 31, 2016. Adjusted FFO attributable to common share and unit holders for the year ended December 31, 2017, was $287.0 million, or $0.90 per FFO share and unit, compared to $242.5 million, or $0.84 per FFO share and unit, for the year ended December 31, 2016. This improvement was primarily attributable to significant increases in rental revenue driven by a larger number of leased properties and higher rental rates, partially offset by increases in property operating expenses.
Portfolio
As of December 31, 2017, the Company had 46,996 leased properties, an increase of 970 properties from September 30, 2017. As of December 31, 2017, the leased percentage on Same-Home properties was 95.7%, compared to 95.2% as of September 30, 2017.
Investments
As of December 31, 2017, the Company's total portfolio consisted of 51,239 homes, including 310 homes held for sale, compared to 50,015 homes as of September 30, 2017, including 469 homes held for sale, an increase of 1,224 homes, which included 1,412 homes acquired and 188 homes sold or rescinded (including 162 former ARPI properties).
For 2018, the Company is revising its full year acquisition target to $400 million to $600 million, which will be focused going forward primarily on newly-constructed, built-for-rental product that we believe provides the best risk-adjusted returns and is consistent with our core growth strategy.

 
 
 
 
 
5


 
American Homes 4 Rent

 

Earnings Press Release (continued)

Capital Activities and Balance Sheet
In the fourth quarter of 2017, the Company redeemed all 5,060,000 shares of the outstanding 5.0% Series A participating preferred shares and all 4,400,000 shares of the outstanding 5.0% Series B participating preferred shares through a conversion of those shares into Class A common shares, in accordance with the conversion terms in the Articles Supplementary. This resulted in 12,398,276 total Class A common shares issued from the redemption, based on a conversion ratio of 1.3106 Class A common shares issued per Series A and B participating preferred share.
As of December 31, 2017, the Company had cash and cash equivalents of $46.2 million and had total outstanding debt of $2.5 billion, excluding an unamortized discount on acquired debt, the value of exchangeable senior notes classified within equity and unamortized deferred loan costs, with a weighted-average stated interest rate of 4.07% and a weighted-average term to maturity of 14.4 years. The Company’s $800.0 million revolving credit facility and $200.0 million term loan facility had outstanding borrowings of $140.0 million and $200.0 million, respectively, at the end of the year.
In February 2018, the Operating Partnership issued $500.0 million of 4.25% unsecured senior notes with a maturity date of February 15, 2028, which have been effectively hedged at 4.08% through the use of a treasury lock that was settled for a $9.6 million gain. Interest on the notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2018. The Operating Partnership received net proceeds of $494.0 million from this offering, after underwriting fees of approximately $3.2 million and a $2.8 million discount, and before estimated offering costs of $1.5 million. The Operating Partnership intends to use the net proceeds from this offering for general corporate purposes, including, without limitation, acquisition of properties, the repayment of outstanding indebtedness, capital expenditures, the expansion, redevelopment and/or improvement of our properties, working capital and other general purposes, including repurchases of securities.
During February 2018, the Company's board of trustees authorized the repurchase of up to $300.0 million of our outstanding Class A common shares and up to $250.0 million of our outstanding preferred shares. Common and preferred share repurchases may be made in the open market or in privately negotiated transactions.
2018 Outlook
 
 
Full Year 2018
Same-Home
 
 
Average Occupied Days Percentage
 
94.5% - 95.5%
Core revenues growth
 
3.5% - 4.5%
Core property operating expenses growth
 
4.0% - 5.0%
Core NOI After Capital Expenditures growth
 
3.0% - 4.0%
Core NOI margin
 
64.0% - 65.0%
Property tax expense growth
 
3.5% - 4.5%
Average R&M and turnover costs, net, plus Recurring Capital Expenditures per property
 
$1,950 - $2,100
 
 
 
Property Enhancing Capex
 
$8 - $12 million
 
 
 
General and administrative expense, excluding noncash share-based compensation
 
$33.5 - $35.5 million
 
 
 
Acquisition volume
 
$400 - $600 million
Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income or loss, total revenues and property operating expenses, or a reconciliation of the above-listed forward-looking non-GAAP financial measures to the comparable GAAP financial measures because we are unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items

 
 
 
 
 
6


 
American Homes 4 Rent

 

Earnings Press Release (continued)

include, but are not limited to, net gain or loss on sales and impairment of single-family properties, casualty loss, Non-Same-Home revenues, Non-Same-Home property operating expenses and noncash fair value adjustments associated with remeasuring our participating preferred shares derivative liability to fair value. These items are uncertain, depend on various factors and could have a material impact on our GAAP results for the guidance period.
Additional Information
A copy of the Company’s Fourth Quarter 2017 Earnings Release and Supplemental Information Package and this press release are available on our website at www.americanhomes4rent.com. This information has also been furnished to the SEC in a current report on Form 8-K.
Conference Call
A conference call is scheduled on Friday, February 23, 2018, at 11:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and full year ended December 31, 2017, and to provide an update on its business. The domestic dial-in number is (877) 451-6152 (for U.S. and Canada) and the international dial-in number is (201) 389-0879 (passcode not required). A simultaneous audio webcast may be accessed by using the link at www.americanhomes4rent.com, under “For Investors.” A replay of the conference call may be accessed through Friday, March 9, 2018, by calling (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (international), replay passcode number 13675860#, or by using the link at www.americanhomes4rent.com, under “For Investors.”
About American Homes 4 Rent
American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and “American Homes 4 Rent” is fast becoming a nationally recognized brand for rental homes, known for high quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, renovating, leasing, and operating attractive, single-family homes as rental properties. As of December 31, 2017, we owned 51,239 single-family properties in selected submarkets in 22 states.
Forward-Looking Statements
This press release contains “forward-looking statements.” These forward-looking statements relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “intend,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. Examples of forward-looking statements contained in this press release include, among others, our belief that our acquisition and homebuilding programs will result in continued growth and that we will continue to expand margins. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company's management considers these expectations to be reasonable, they are inherently subject to risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statements to conform to actual results or changes in its expectations, unless required by applicable law. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see the “Risk Factors” disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, and in the Company’s subsequent filings with the SEC.

 
 
 
 
 
7


American Homes 4 Rent


Fact Sheet
(Amounts in thousands, except per share and property data)
(Unaudited)
 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
Operating Data
 
 
 
 
 
 
 
Net (loss) income attributable to common shareholders
$
(21,994
)
 
$
2,391

 
$
(22,135
)
 
$
(33,542
)
Core revenues
$
211,182

 
$
199,518

 
$
827,422

 
$
760,868

Core NOI
$
136,775

 
$
129,096

 
$
531,694

 
$
476,617

Core NOI margin
64.8
%
 
64.7
%
 
64.3
%
 
62.6
%
Platform Efficiency Percentage
11.7
%
 
12.7
%
 
12.3
%
 
13.4
%
Adjusted EBITDA after Capex and Leasing Costs
$
121,197

 
$
113,905

 
$
464,822

 
$
414,874

Adjusted EBITDA after Capex and Leasing Costs Margin
56.5
%
 
55.7
%
 
55.3
%
 
52.9
%
Per FFO share and unit:
 
 
 
 
 
 
 
FFO attributable to common share and unit holders
$
0.14

 
$
0.24

 
$
0.81

 
$
0.88

Core FFO attributable to common share and unit holders
$
0.26

 
$
0.26

 
$
1.02

 
$
0.97

Adjusted FFO attributable to common share and unit holders
$
0.23

 
$
0.23

 
$
0.90

 
$
0.84

 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
Selected Balance Sheet Information - end of period
 
 
 
 
 
 
 
 
 
Single-family properties, net
$
8,064,980

 
$
7,802,499

 
$
7,633,784

 
$
7,542,196

 
$
7,547,856

Total assets
$
8,608,768

 
$
8,509,876

 
$
8,146,307

 
$
8,490,605

 
$
8,107,210

Outstanding borrowings under credit facilities, net
$
338,023

 
$
197,913

 
$
289,648

 
$
346,909

 
$
321,735

Total Debt
$
2,517,216

 
$
2,382,871

 
$
2,480,787

 
$
2,999,587

 
$
2,981,062

Total Market Capitalization
$
10,975,663

 
$
10,799,923

 
$
10,716,768

 
$
11,194,693

 
$
10,227,619

Total Debt to Total Market Capitalization
22.9
%
 
22.1
%
 
23.1
%
 
26.8
%
 
29.1
%
Net Debt to Adjusted EBITDA
4.8 x

 
4.2 x

 
4.8 x

 
5.1 x

 
6.1 x

NYSE AMH Class A common share closing price
$
21.84

 
$
21.71

 
$
22.57

 
$
22.96

 
$
20.98

Portfolio Data - end of period
 
 
 
 
 
 
 
 
 
Leased single-family properties
46,996

 
46,026

 
46,089

 
45,285

 
44,798

Occupied single-family properties
46,614

 
45,660

 
45,495

 
44,941

 
44,559

Single-family properties newly acquired and being renovated
980

 
858

 
508

 
367

 
312

Single-family properties being prepared for re-lease
372

 
392

 
161

 
121

 
91

Vacant single-family properties available for re-lease
1,902

 
1,974

 
1,521

 
1,796

 
1,985

Vacant single-family properties available for initial lease
679

 
296

 
121

 
63

 
117

Total single-family properties, excluding held for sale
50,929

 
49,546

 
48,400

 
47,632

 
47,303

Single-family properties held for sale
310

 
469

 
582

 
704

 
1,119

Total single-family properties
51,239

 
50,015

 
48,982

 
48,336

 
48,422

Total leased percentage (1)
92.3
%
 
92.9
%
 
95.2
%
 
95.1
%
 
94.7
%
Total Average Occupied Days Percentage
90.8
%
 
93.2
%
 
93.3
%
 
93.5
%
 
92.9
%
Same-Home leased percentage (36,645 properties)
95.7
%
 
95.2
%
 
96.5
%
 
96.0
%
 
95.7
%
Same-Home Average Occupied Days Percentage (36,645 properties)
93.9
%
 
94.1
%
 
94.9
%
 
95.0
%
 
94.7
%
Other Data
 
 
 
 
 
 
 
 
 
Distributions declared per common share
$
0.05

 
$
0.05

 
$
0.05

 
$
0.05

 
$
0.05

Distributions declared per Series A participating preferred share (2)
$
—

 
$
0.31

 
$
0.31

 
$
0.31

 
$
0.31

Distributions declared per Series B participating preferred share (2)
$
—

 
$
0.31

 
$
0.31

 
$
0.31

 
$
0.31

Distributions declared per Series C participating preferred share
$
0.34

 
$
0.34

 
$
0.34

 
$
0.34

 
$
0.34

Distributions declared per Series D perpetual preferred share
$
0.41

 
$
0.41

 
$
0.41

 
$
0.41

 
$
0.41

Distributions declared per Series E perpetual preferred share
$
0.40

 
$
0.40

 
$
0.40

 
$
0.40

 
$
0.40

Distributions declared per Series F perpetual preferred share (3)
$
0.37

 
$
0.37

 
$
0.27

 
$
—

 
$
—

Distributions declared per Series G perpetual preferred share (3)
$
0.37

 
$
0.30

 
$
—

 
$
—

 
$
—

(1)
Leased percentage is calculated based on total single-family properties, excluding held for sale properties.
(2)
All of the Series A and B participating preferred shares were converted into Class A common shares on October 3, 2017.
(3)
Series F and G perpetual preferred shares offering close dates and initial dividend start dates were April 24, 2017, and July 17, 2017, respectively.

 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
8

American Homes 4 Rent


Consolidated Statements of Operations
(Amounts in thousands, except share and per share data)

 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
 
Revenues:
 
 
 
 
 
 
 
Rents from single-family properties
$
210,778

 
$
198,980

 
$
824,023

 
$
757,603

Fees from single-family properties
2,590

 
2,415

 
10,727

 
10,234

Tenant charge-backs
28,232

 
23,177

 
120,081

 
95,254

Other
1,201

 
2,987

 
5,568

 
15,798

Total revenues
242,801

 
227,559

 
960,399

 
878,889

 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
Property operating expenses
87,871

 
78,323

 
355,074

 
317,310

Property management expenses
17,345

 
17,547

 
69,712

 
70,724

General and administrative expense
7,986

 
8,524

 
34,732

 
33,068

Interest expense
25,747

 
31,538

 
112,620

 
130,847

Acquisition fees and costs expensed
809

 
544

 
4,623

 
11,443

Depreciation and amortization
75,831

 
74,164

 
297,290

 
298,677

Hurricane-related charges, net
(2,173
)
 
—

 
7,963

 
—

Other
803

 
5,496

 
5,005

 
11,978

Total expenses
214,219

 
216,136

 
887,019

 
874,047

 
 
 
 
 
 
 
 
Gain on sale of single-family properties and other, net
451

 
1,995

 
6,826

 
14,569

Loss on early extinguishment of debt
—

 
—

 
(6,555
)
 
(13,408
)
Gain on conversion of Series E units
—

 
—

 
—

 
11,463

Remeasurement of participating preferred shares
1,500

 
(4,080
)
 
2,841

 
(7,020
)
 
 
 
 
 
 
 
 
Net income
30,533

 
9,338

 
76,492

 
10,446

 
 
 
 
 
 
 
 
Noncontrolling interest
(4,485
)
 
(6,640
)
 
(4,507
)
 
3,751

Dividends on preferred shares
14,596

 
13,587

 
60,718

 
40,237

Redemption of participating preferred shares
42,416

 
—

 
42,416

 
—

 
 
 
 
 
 
 
 
Net (loss) income attributable to common shareholders
$
(21,994
)
 
$
2,391

 
$
(22,135
)
 
$
(33,542
)
 
 
 
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
 
 
 
Basic
286,469,724

 
239,887,357

 
264,254,718

 
234,010,168

Diluted
286,469,724

 
295,965,589

 
264,254,718

 
234,010,168

 
 
 
 
 
 
 
 
Net (loss) income attributable to common shareholders per share:
 
 
 
 
 
 
 
Basic
$
(0.08
)
 
$
0.01

 
$
(0.08
)
 
$
(0.14
)
Diluted
$
(0.08
)
 
$
(0.01
)
 
$
(0.08
)
 
$
(0.14
)


 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
9

American Homes 4 Rent


Funds from Operations
(Amounts in thousands, except share and per share data)
(Unaudited)
 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
Net (loss) income attributable to common shareholders
$
(21,994
)
 
$
2,391

 
$
(22,135
)
 
$
(33,542
)
Adjustments:
 
 
 
 
 
 
 
Noncontrolling interests in the Operating Partnership
(4,618
)
 
(6,525
)
 
(4,648
)
 
4,313

Net loss (gain) on sale / impairment of single-family properties and other
443

 
1,508

 
(2,146
)
 
(9,599
)
Depreciation and amortization
75,831

 
74,164

 
297,290

 
298,677

Less: depreciation and amortization of non-real estate assets
(1,797
)
 
(2,046
)
 
(7,847
)
 
(6,391
)
FFO attributable to common share and unit holders
$
47,865

 
$
69,492

 
$
260,514

 
$
253,458

Adjustments:
 
 
 
 
 
 
 
Acquisition fees and costs expensed
809

 
544

 
4,623

 
11,443

Noncash share-based compensation - general and administrative
646

 
498

 
2,563

 
2,076

Noncash share-based compensation - property management
391

 
394

 
1,649

 
1,560

Noncash interest expense related to acquired debt
925

 
865

 
3,549

 
4,564

Hurricane-related charges, net
(2,173
)
 
—

 
7,963

 
—

Loss on early extinguishment of debt
—

 
—

 
6,555

 
13,408

Gain on conversion of Series E units
—

 
—

 
—

 
(11,463
)
Remeasurement of participating preferred shares
(1,500
)
 
4,080

 
(2,841
)
 
7,020

Redemption of participating preferred shares
42,416

 
—

 
42,416

 
—

Core FFO attributable to common share and unit holders
$
89,379

 
$
75,873

 
$
326,991

 
$
282,066

Recurring capital expenditures (1)
(7,501
)
 
(6,353
)
 
(32,556
)
 
(31,536
)
Leasing costs
(2,029
)
 
(1,806
)
 
(7,390
)
 
(8,005
)
Adjusted FFO attributable to common share and unit holders
$
79,849

 
$
67,714

 
$
287,045

 
$
242,525

 
 
 
 
 
 
 
 
Per FFO share and unit:
 
 
 
 
 
 
 
FFO attributable to common share and unit holders
$
0.14

 
$
0.24

 
$
0.81

 
$
0.88

Core FFO attributable to common share and unit holders
$
0.26

 
$
0.26

 
$
1.02

 
$
0.97

Adjusted FFO attributable to common share and unit holders
$
0.23

 
$
0.23

 
$
0.90

 
$
0.84

 
 
 
 
 
 
 
 
Weighted-average FFO shares and units:
 
 
 
 
 
 
 
Common shares outstanding
286,469,724

 
239,887,357

 
264,254,718

 
234,010,168

Share-based compensation plan (2)
696,037

 
—

 
735,415

 
—

Operating partnership units
55,353,391

 
55,555,960

 
55,498,488

 
55,355,197

Total weighted-average FFO shares and units
342,519,152

 
295,443,317

 
320,488,621

 
289,365,365

(1)
As a portion of our homes are recently acquired and / or renovated, we estimate recurring capital expenditures for our entire portfolio by multiplying (a) current period actual recurring capital expenditures per Same-Home property by (b) our total number of properties, excluding non-stabilized and held for sale properties.
(2)
Reflects the effect of potentially dilutive securities issuable upon the assumed vesting / exercise of restricted stock units and stock options.



 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
10

American Homes 4 Rent


Core Net Operating Income - Total Portfolio
(Amounts in thousands)
(Unaudited)
 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
Rents from single-family properties
$
210,778

 
$
198,980

 
$
824,023

 
$
757,603

Fees from single-family properties
2,590

 
2,415

 
10,727

 
10,234

Bad debt expense
(2,186
)
 
(1,877
)
 
(7,328
)
 
(6,969
)
Core revenues
211,182

 
199,518

 
827,422

 
760,868

 
 
 
 
 
 
 
 
Property tax expense
37,602

 
34,566

 
147,654

 
136,875

HOA fees, net (1)
4,425

 
3,940

 
16,656

 
15,217

R&M and turnover costs, net (1)
14,645

 
13,958

 
60,593

 
59,593

Insurance
2,071

 
2,221

 
7,916

 
8,811

Property management expenses, net (2)
15,664

 
15,737

 
62,909

 
63,755

Core property operating expenses
74,407

 
70,422

 
295,728

 
284,251

 
 
 
 
 
 
 
 
Core NOI
$
136,775

 
$
129,096

 
$
531,694

 
$
476,617

Core NOI margin
64.8
%
 
64.7
%
 
64.3
%
 
62.6
%

 
For the Three Months Ended
Dec 31, 2017
 
Same-Home Properties
 
Stabilized,
Non-Same-Home
Properties
 
Former
ARPI
Properties
 
Subtotal Same-Home, Stabilized and ARPI
 
Other &
Held for Sale
Properties (3)
 
Total
Single-Family
Properties
Property count
36,645

 
4,036

 
7,401

 
48,082

 
3,157

 
51,239

 
 
 
 
 
 
 
 
 
 
 
 
Rents from single-family properties
$
159,262

 
$
18,025

 
$
30,582

 
$
207,869

 
$
2,909

 
$
210,778

Fees from single-family properties
1,847

 
148

 
393

 
2,388

 
202

 
2,590

Bad debt expense
(1,607
)
 
(155
)
 
(315
)
 
(2,077
)
 
(109
)
 
(2,186
)
Core revenues
159,502

 
18,018

 
30,660

 
208,180

 
3,002

 
211,182

 
 
 
 
 
 
 
 
 
 
 
 
Property tax expense
28,346

 
2,595

 
5,440

 
36,381

 
1,221

 
37,602

HOA fees, net (1)
3,191

 
326

 
739

 
4,256

 
169

 
4,425

R&M and turnover costs, net (1)
11,094

 
933

 
1,830

 
13,857

 
788

 
14,645

Insurance
1,473

 
196

 
299

 
1,968

 
103

 
2,071

Property management expenses, net (2)
11,830

 
1,337

 
2,274

 
15,441

 
223

 
15,664

Core property operating expenses
55,934

 
5,387

 
10,582

 
71,903

 
2,504

 
74,407

 
 
 
 
 
 
 
 
 
 
 
 
Core NOI
$
103,568

 
$
12,631

 
$
20,078

 
$
136,277

 
$
498

 
$
136,775

Core NOI margin
64.9
%
 
70.1
%
 
65.5
%
 
65.5
%
 
16.6
%
 
64.8
%
(1)
Presented net of tenant charge-backs. In-house maintenance costs, which were previously presented separately, are included in R&M and turnover costs, net.
(2)
Presented net of tenant charge-backs and excludes noncash share-based compensation expense related to centralized and field property management employees.
(3)
Includes 2,847 non-stabilized properties consisting of recent acquisitions and homes sustaining major damage from the third quarter 2017 hurricanes and 310 properties classified as held for sale.



 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
11

American Homes 4 Rent


Same-Home Results – Quarterly and Full Year Comparisons
(Amounts in thousands, except property and per property data)
(Unaudited)
 
For the Three Months Ended
Dec 31,
 
 
 
For the Years Ended
Dec 31,
 
 
 
2017
 
2016
 
Change
 
2017
 
2016
 
Change
Number of Same-Home properties
36,645
 
36,645
 
 
 
36,645
 
36,645
 
 
Leased percentage as of period end
95.7
%
 
95.7
%
 
—
 %
 
95.7
%
 
95.7
%
 
—
 %
Occupancy percentage as of period end
94.8
%
 
95.3
%
 
(0.5
)%
 
94.8
%
 
95.3
%
 
(0.5
)%
Average Occupied Days Percentage
93.9
%
 
94.7
%
 
(0.8
)%
 
94.5
%
 
94.6
%
 
(0.1
)%
Average Monthly Realized Rent per property
$
1,543

 
$
1,496

 
3.1
 %
 
$
1,521

 
$
1,475

 
3.1
 %
Turnover Rate
8.0
%
 
8.2
%
 
(0.2
)%
 
39.7
%
 
41.0
%
 
(1.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
Core NOI:
 
 
 
 
 
 
 
 
 
 
 
Rents from single-family properties
$
159,262

 
$
155,746

 
2.3
 %
 
$
632,170

 
$
613,533

 
3.0
 %
Fees from single-family properties
1,847

 
1,789

 
3.2
 %
 
7,788

 
7,937

 
(1.9
)%
Bad debt expense
(1,607
)
 
(1,380
)
 
16.4
 %
 
(5,549
)
 
(5,275
)
 
5.2
 %
Core revenues
159,502

 
156,155

 
2.1
 %
 
634,409

 
616,195

 
3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
Property tax expense
28,346

 
26,877

 
5.5
 %
 
112,476

 
110,028

 
2.2
 %
HOA fees, net (1)
3,191

 
2,985

 
6.9
 %
 
12,250

 
11,930

 
2.7
 %
R&M and turnover costs, net (1)
11,094

 
10,518

 
5.5
 %
 
46,284

 
46,429

 
(0.3
)%
Insurance
1,473

 
1,657

 
(11.1
)%
 
5,890

 
6,834

 
(13.8
)%
Property management expenses, net (2)
11,830

 
12,290

 
(3.7
)%
 
48,244

 
51,694

 
(6.7
)%
Core property operating expenses
55,934

 
54,327

 
3.0
 %
 
225,144

 
226,915

 
(0.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
Core NOI
$
103,568

 
$
101,828

 
1.7
 %
 
$
409,265

 
$
389,280

 
5.1
 %
Core NOI margin
64.9
%
 
65.2
%
 
 
 
64.5
%
 
63.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Capital Expenditures
5,706

 
5,381

 
6.0
 %
 
25,150

 
27,572

 
(8.8
)%
Core NOI After Capital Expenditures
$
97,862

 
$
96,447

 
1.5
 %
 
$
384,115

 
$
361,708

 
6.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
Property Enhancing Capex
 
 
 
 
 
 
 
 
 
 
 
Resilient flooring program
$
1.509

 
$
—

 
—
 %
 
$
3.114

 
$
—

 
—
 %
 
 
 
 
 
 
 
 
 
 
 
 
Per property:
 
 
 
 
 
 
 
 
 
 
 
Average Recurring Capital Expenditures
$
156

 
$
147

 
6.0
 %
 
$
686

 
$
752

 
(8.8
)%
Average R&M and turnover costs, net, plus Recurring Capital Expenditures
$
458

 
$
434

 
5.5
 %
 
$
1,949

 
$
2,019

 
(3.5
)%
(1)
Presented net of tenant charge-backs. In-house maintenance costs, previously presented separately, are included in R&M and turnover costs, net.
(2)
Presented net of tenant charge-backs and excludes noncash share-based compensation expense related to centralized and field property management employees.



 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
12

American Homes 4 Rent


Same-Home Results – Sequential Quarterly History
(Amounts in thousands, except per property data)
(Unaudited)
 
For the Three Months Ended
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
Core NOI:
 
 
 
 
 
 
 
 
 
Rents from single-family properties
$
159,262

 
$
158,328

 
$
158,089

 
$
156,491

 
$
155,746

Fees from single-family properties
1,847

 
2,097

 
1,962

 
1,882

 
1,789

Bad debt expense
(1,607
)
 
(1,750
)
 
(1,013
)
 
(1,179
)
 
(1,380
)
Core revenues
159,502

 
158,675

 
159,038

 
157,194

 
156,155

 
 
 
 
 
 
 
 
 
 
Property tax expense
28,346

 
27,973

 
27,858

 
28,299

 
26,877

HOA fees, net (1)
3,191

 
3,112

 
3,027

 
2,920

 
2,985

R&M and turnover costs, net (1)
11,094

 
13,691

 
12,094

 
9,405

 
10,518

Insurance
1,473

 
1,448

 
1,433

 
1,536

 
1,657

Property management expenses, net (2)
11,830

 
12,029

 
12,257

 
12,128

 
12,290

Core property operating expenses
55,934

 
58,253

 
56,669

 
54,288

 
54,327

 
 
 
 
 
 
 
 
 
 
Core NOI
$
103,568

 
$
100,422

 
$
102,369

 
$
102,906

 
$
101,828

Core NOI margin
64.9
%
 
63.3
%
 
64.4
%
 
65.5
%
 
65.2
%
 
 
 
 
 
 
 
 
 
 
Recurring Capital Expenditures
5,706

 
7,951

 
6,472

 
5,021

 
5,381

Core NOI After Capital Expenditures
$
97,862

 
$
92,471

 
$
95,897

 
$
97,885

 
$
96,447

 
 
 
 
 
 
 
 
 
 
Property Enhancing Capex
 
 
 
 
 
 
 
 
 
Resilient flooring program
$
1,509

 
$
1,006

 
$
600

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Per property:
 
 
 
 
 
 
 
 
 
Average Recurring Capital Expenditures
$
156

 
$
216

 
$
177

 
$
137

 
$
147

Average R&M and turnover costs, net, plus Recurring Capital Expenditures
$
458

 
$
590

 
$
507

 
$
394

 
$
434

(1)
Presented net of tenant charge-backs. In-house maintenance costs, previously presented separately, are included in R&M and turnover costs, net.
(2)
Presented net of tenant charge-backs and excludes noncash share-based compensation expense related to centralized and field property management employees.


 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
13

American Homes 4 Rent


Same-Home Results – Operating Metrics by Market
 
Number of Properties
 
Gross Book Value per Property
 
% of 4Q17 NOI
 
Avg. Change in Rent for Renewals (1)
 
Avg. Change in Rent for Re-Leases (1)
 
Avg. Blended Change in Rent (1)
Dallas-Fort Worth, TX
3,046

 
$
162,375

 
7.6
%
 
4.7
%
 
1.7
 %
 
3.4
 %
Indianapolis, IN
2,717

 
153,469

 
6.7
%
 
3.8
%
 
1.2
 %
 
2.1
 %
Atlanta, GA
2,431

 
165,775

 
6.7
%
 
5.0
%
 
5.2
 %
 
5.1
 %
Charlotte, NC
2,191

 
175,581

 
6.4
%
 
3.6
%
 
(1.5
)%
 
1.5
 %
Greater Chicago area, IL and IN
1,991

 
180,591

 
5.0
%
 
3.4
%
 
(0.1
)%
 
1.3
 %
Houston, TX
1,849

 
175,481

 
4.2
%
 
2.1
%
 
(2.5
)%
 
(0.6
)%
Cincinnati, OH
1,819

 
173,945

 
5.1
%
 
3.4
%
 
0.3
 %
 
1.6
 %
Phoenix, AZ
1,575

 
164,127

 
3.9
%
 
6.2
%
 
6.6
 %
 
6.4
 %
Tampa, FL
1,510

 
190,564

 
4.1
%
 
3.6
%
 
0.1
 %
 
1.9
 %
Raleigh, NC
1,472

 
181,894

 
4.2
%
 
3.7
%
 
0.9
 %
 
2.5
 %
Jacksonville, FL
1,460

 
153,325

 
3.8
%
 
4.4
%
 
3.1
 %
 
3.8
 %
Nashville, TN
1,439

 
210,275

 
5.0
%
 
3.7
%
 
(2.5
)%
 
0.7
 %
Columbus, OH
1,374

 
155,097

 
3.6
%
 
4.3
%
 
1.2
 %
 
3.0
 %
Orlando, FL
1,068

 
170,392

 
3.0
%
 
5.0
%
 
5.7
 %
 
5.3
 %
Salt Lake City, UT
1,046

 
220,979

 
3.6
%
 
4.7
%
 
5.7
 %
 
5.2
 %
Las Vegas, NV
948

 
176,326

 
2.8
%
 
5.1
%
 
5.2
 %
 
5.1
 %
San Antonio, TX
830

 
156,036

 
1.8
%
 
3.6
%
 
(2.2
)%
 
1.1
 %
Austin, TX
663

 
151,575

 
1.4
%
 
4.4
%
 
(2.3
)%
 
0.7
 %
Denver, CO
634

 
274,883

 
2.8
%
 
4.4
%
 
(0.1
)%
 
2.3
 %
Charleston, SC
604

 
180,139

 
1.7
%
 
3.0
%
 
(0.4
)%
 
1.4
 %
All Other (2)
5,978

 
174,308

 
16.6
%
 
4.2
%
 
1.7
 %
 
2.9
 %
Total / Average
36,645

 
$
174,338

 
100.0
%
 
4.2
%
 
1.3
 %
 
2.8
 %

 
 Average Occupied Days Percentage
 
 Average Monthly Realized Rent per property
 
4Q17 QTD
 
4Q16 QTD
 
Change
 
4Q17 QTD
 
4Q16 QTD
 
Change
Dallas-Fort Worth, TX
93.1
%
 
95.3
%
 
(2.2
)%
 
$
1,669

 
$
1,608

 
3.8
%
Indianapolis, IN
94.4
%
 
93.6
%
 
0.8
 %
 
1,359

 
1,317

 
3.2
%
Atlanta, GA
95.1
%
 
96.1
%
 
(1.0
)%
 
1,491

 
1,422

 
4.9
%
Charlotte, NC
92.5
%
 
94.8
%
 
(2.3
)%
 
1,520

 
1,470

 
3.4
%
Greater Chicago area, IL and IN
94.5
%
 
95.4
%
 
(0.9
)%
 
1,772

 
1,730

 
2.4
%
Houston, TX
93.5
%
 
92.1
%
 
1.4
 %
 
1,646

 
1,641

 
0.3
%
Cincinnati, OH
93.9
%
 
95.5
%
 
(1.6
)%
 
1,519

 
1,487

 
2.2
%
Phoenix, AZ
95.0
%
 
94.5
%
 
0.5
 %
 
1,282

 
1,230

 
4.2
%
Tampa, FL
93.3
%
 
94.0
%
 
(0.7
)%
 
1,682

 
1,632

 
3.1
%
Raleigh, NC
93.6
%
 
94.8
%
 
(1.2
)%
 
1,485

 
1,434

 
3.6
%
Jacksonville, FL
95.4
%
 
94.6
%
 
0.8
 %
 
1,449

 
1,404

 
3.2
%
Nashville, TN
92.5
%
 
94.7
%
 
(2.2
)%
 
1,697

 
1,652

 
2.7
%
Columbus, OH
92.3
%
 
95.4
%
 
(3.1
)%
 
1,527

 
1,482

 
3.0
%
Orlando, FL
96.7
%
 
96.9
%
 
(0.2
)%
 
1,591

 
1,495

 
6.4
%
Salt Lake City, UT
93.2
%
 
96.4
%
 
(3.2
)%
 
1,627

 
1,539

 
5.7
%
Las Vegas, NV
96.3
%
 
96.0
%
 
0.3
 %
 
1,454

 
1,401

 
3.8
%
San Antonio, TX
92.5
%
 
93.9
%
 
(1.4
)%
 
1,485

 
1,446

 
2.7
%
Austin, TX
92.7
%
 
95.1
%
 
(2.4
)%
 
1,474

 
1,436

 
2.6
%
Denver, CO
95.1
%
 
95.1
%
 
—
 %
 
2,084

 
2,018

 
3.3
%
Charleston, SC
93.9
%
 
95.8
%
 
(1.9
)%
 
1,608

 
1,560

 
3.1
%
All Other (2)
93.6
%
 
93.9
%
 
(0.3
)%
 
1,474

 
1,435

 
2.7
%
Total / Average
93.9
%
 
94.7
%
 
(0.8
)%
 
$
1,543

 
$
1,496

 
3.1
%
(1)
Reflected for the three months ended December 31, 2017.
(2)
Represents 21 markets in 15 states.


 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
14

American Homes 4 Rent


Same-Home Results – Historical Quarterly Trends – New Metrics

Average Occupied Days Percentage
 
 For the Three Months Ended
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
Dallas-Fort Worth, TX
93.1
%
 
93.3
%
 
94.4
%
 
94.9
%
 
95.3
%
 
95.5
%
 
95.1
%
 
96.0
%
Indianapolis, IN
94.4
%
 
93.8
%
 
94.2
%
 
94.5
%
 
93.6
%
 
92.9
%
 
94.1
%
 
94.1
%
Atlanta, GA
95.1
%
 
96.2
%
 
96.1
%
 
96.1
%
 
96.1
%
 
95.7
%
 
95.1
%
 
96.3
%
Charlotte, NC
92.5
%
 
94.0
%
 
94.7
%
 
94.8
%
 
94.8
%
 
95.7
%
 
95.3
%
 
95.9
%
Greater Chicago area, IL and IN
94.5
%
 
94.7
%
 
95.8
%
 
96.4
%
 
95.4
%
 
93.9
%
 
95.6
%
 
95.3
%
Houston, TX
93.5
%
 
90.4
%
 
91.8
%
 
91.8
%
 
92.1
%
 
91.5
%
 
92.3
%
 
93.2
%
Cincinnati, OH
93.9
%
 
93.6
%
 
94.4
%
 
94.7
%
 
95.5
%
 
93.5
%
 
94.3
%
 
93.3
%
Phoenix, AZ
95.0
%
 
96.0
%
 
97.1
%
 
96.1
%
 
94.5
%
 
94.6
%
 
94.1
%
 
94.5
%
Tampa, FL
93.3
%
 
94.1
%
 
94.2
%
 
95.3
%
 
94.0
%
 
94.7
%
 
94.9
%
 
94.7
%
Raleigh, NC
93.6
%
 
94.9
%
 
94.6
%
 
94.5
%
 
94.8
%
 
94.5
%
 
94.2
%
 
95.7
%
Jacksonville, FL
95.4
%
 
94.7
%
 
95.7
%
 
96.2
%
 
94.6
%
 
94.7
%
 
93.3
%
 
95.2
%
Nashville, TN
92.5
%
 
92.4
%
 
94.6
%
 
94.8
%
 
94.7
%
 
96.0
%
 
95.0
%
 
94.6
%
Columbus, OH
92.3
%
 
93.8
%
 
96.2
%
 
96.3
%
 
95.4
%
 
95.6
%
 
96.0
%
 
95.8
%
Orlando, FL
96.7
%
 
96.4
%
 
95.6
%
 
96.0
%
 
96.9
%
 
96.7
%
 
94.6
%
 
95.5
%
Salt Lake City, UT
93.2
%
 
94.2
%
 
96.8
%
 
97.2
%
 
96.4
%
 
95.1
%
 
95.5
%
 
96.2
%
Las Vegas, NV
96.3
%
 
97.0
%
 
96.8
%
 
96.7
%
 
96.0
%
 
96.3
%
 
96.5
%
 
94.1
%
San Antonio, TX
92.5
%
 
92.8
%
 
94.5
%
 
94.1
%
 
93.9
%
 
91.8
%
 
92.3
%
 
95.1
%
Austin, TX
92.7
%
 
93.7
%
 
94.1
%
 
92.7
%
 
95.1
%
 
93.6
%
 
94.4
%
 
94.2
%
Denver, CO
95.1
%
 
95.5
%
 
95.8
%
 
95.3
%
 
95.1
%
 
94.9
%
 
95.7
%
 
97.4
%
Charleston, SC
93.9
%
 
93.1
%
 
92.9
%
 
94.5
%
 
95.8
%
 
96.0
%
 
94.8
%
 
93.3
%
All Other (1)
93.6
%
 
93.8
%
 
94.6
%
 
94.5
%
 
93.9
%
 
93.3
%
 
93.6
%
 
94.0
%
Total / Average
93.9
%
 
94.1
%
 
94.9
%
 
95.0
%
 
94.7
%
 
94.4
%
 
94.5
%
 
94.9
%

Average Monthly Realized Rent per property
 
 For the Three Months Ended
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
Jun 30,
2016
 
Mar 31,
2016
Dallas-Fort Worth, TX
$
1,669

 
$
1,664

 
$
1,641

 
$
1,620

 
$
1,608

 
$
1,594

 
$
1,576

 
$
1,543

Indianapolis, IN
1,359

 
1,344

 
1,334

 
1,319

 
1,317

 
1,319

 
1,302

 
1,305

Atlanta, GA
1,491

 
1,481

 
1,457

 
1,428

 
1,422

 
1,405

 
1,385

 
1,355

Charlotte, NC
1,520

 
1,510

 
1,492

 
1,484

 
1,470

 
1,449

 
1,435

 
1,404

Greater Chicago area, IL and IN
1,772

 
1,756

 
1,730

 
1,716

 
1,730

 
1,726

 
1,705

 
1,682

Houston, TX
1,646

 
1,627

 
1,628

 
1,627

 
1,641

 
1,631

 
1,630

 
1,605

Cincinnati, OH
1,519

 
1,512

 
1,496

 
1,479

 
1,487

 
1,485

 
1,473

 
1,449

Phoenix, AZ
1,282

 
1,260

 
1,240

 
1,233

 
1,230

 
1,218

 
1,207

 
1,188

Tampa, FL
1,682

 
1,660

 
1,661

 
1,624

 
1,632

 
1,622

 
1,599

 
1,570

Raleigh, NC
1,485

 
1,475

 
1,459

 
1,447

 
1,434

 
1,427

 
1,405

 
1,383

Jacksonville, FL
1,449

 
1,433

 
1,414

 
1,400

 
1,404

 
1,391

 
1,366

 
1,343

Nashville, TN
1,697

 
1,705

 
1,683

 
1,660

 
1,652

 
1,655

 
1,626

 
1,605

Columbus, OH
1,527

 
1,520

 
1,505

 
1,485

 
1,482

 
1,470

 
1,441

 
1,428

Orlando, FL
1,591

 
1,550

 
1,532

 
1,522

 
1,495

 
1,490

 
1,463

 
1,434

Salt Lake City, UT
1,627

 
1,608

 
1,576

 
1,559

 
1,539

 
1,554

 
1,516

 
1,488

Las Vegas, NV
1,454

 
1,441

 
1,427

 
1,409

 
1,401

 
1,386

 
1,373

 
1,351

San Antonio, TX
1,485

 
1,479

 
1,471

 
1,462

 
1,446

 
1,432

 
1,425

 
1,398

Austin, TX
1,474

 
1,466

 
1,471

 
1,437

 
1,436

 
1,424

 
1,402

 
1,388

Denver, CO
2,084

 
2,066

 
2,055

 
2,038

 
2,018

 
2,026

 
1,980

 
1,945

Charleston, SC
1,608

 
1,593

 
1,584

 
1,555

 
1,560

 
1,559

 
1,539

 
1,496

All Other (1)
1,474

 
1,464

 
1,451

 
1,430

 
1,435

 
1,432

 
1,411

 
1,389

Total / Average
$
1,543

 
$
1,531

 
$
1,515

 
$
1,498

 
$
1,496

 
$
1,488

 
$
1,468

 
$
1,446

(1)
Represents 21 markets in 15 states.


 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
15

American Homes 4 Rent


Consolidated Balance Sheets
(Amounts in thousands)
 
Dec 31, 2017
 
Dec 31, 2016
 
(Unaudited)
 
 
Assets
 
 
 
Single-family properties:
 
 
 
Land
$
1,665,631

 
$
1,512,183

Buildings and improvements
7,303,270

 
6,614,953

Single-family properties held for sale, net
35,803

 
87,430

 
9,004,704

 
8,214,566

Less: accumulated depreciation
(939,724
)
 
(666,710
)
Single-family properties, net
8,064,980

 
7,547,856

Cash and cash equivalents
46,156

 
118,799

Restricted cash
136,667

 
131,442

Rent and other receivables, net
30,144

 
17,618

Escrow deposits, prepaid expenses and other assets
171,851

 
133,594

Deferred costs and other intangibles, net
13,025

 
11,956

Asset-backed securitization certificates
25,666

 
25,666

Goodwill
120,279

 
120,279

Total assets
$
8,608,768

 
$
8,107,210

 
 
 
 
Liabilities
 
 
 
Revolving credit facility
$
140,000

 
$
—

Term loan facility, net
198,023

 
321,735

Asset-backed securitizations, net
1,977,308

 
2,442,863

Exchangeable senior notes, net
111,697

 
108,148

Secured note payable
48,859

 
49,828

Accounts payable and accrued expenses
222,867

 
177,206

Amounts payable to affiliates
4,720

 
—

Participating preferred shares derivative liability
29,470

 
69,810

Total liabilities
2,732,944

 
3,169,590

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Equity
 
 
 
Shareholders' equity:
 
 
 
Class A common shares
2,861

 
2,427

Class B common shares
6

 
6

Preferred shares
384

 
370

Additional paid-in capital
5,600,256

 
4,568,616

Accumulated deficit
(453,953
)
 
(378,578
)
Accumulated other comprehensive income
75

 
95

Total shareholders' equity
5,149,629

 
4,192,936

 
 
 
 
Noncontrolling interest
726,195

 
744,684

Total equity
5,875,824

 
4,937,620

 
 
 
 
Total liabilities and equity
$
8,608,768

 
$
8,107,210


 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
16

American Homes 4 Rent


Debt Summary and Maturity Schedule as of December 31, 2017
(Amounts in thousands)
 
 
Secured
 
Unsecured
 
Total Balance
 
% of Total
 
Interest
Rate (1)
 
Years to Maturity (2)
Floating rate debt:
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility (3)
 
$
—

 
$
140,000

 
$
140,000

 
5.6
%
 
2.76
%
 
4.5
Term loan facility (3)
 
—

 
200,000

 
200,000

 
7.9
%
 
2.91
%
 
4.5
Total floating rate debt
 
—

 
340,000

 
340,000

 
13.5
%
 
2.85
%
 
4.5
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt:
 
 
 
 
 
 
 
 
 
 
 
 
AH4R 2014-SFR2
 
496,326

 
—

 
496,326

 
19.7
%
 
4.42
%
 
6.8
AH4R 2014-SFR3
 
512,041

 
—

 
512,041

 
20.3
%
 
4.40
%
 
6.9
AH4R 2015-SFR1
 
537,723

 
—

 
537,723

 
21.4
%
 
4.14
%
 
27.3
AH4R 2015-SFR2
 
467,267

 
—

 
467,267

 
18.6
%
 
4.36
%
 
27.8
Exchangeable senior notes
 
—

 
115,000

 
115,000

 
4.6
%
 
3.25
%
 
0.9
Secured note payable
 
48,859

 
—

 
48,859

 
1.9
%
 
4.06
%
 
1.5
Total fixed rate debt
 
2,062,216

 
115,000

 
2,177,216

 
86.5
%
 
4.26
%
 
16.0
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt
 
$
2,062,216

 
$
455,000

 
$
2,517,216

 
100.0
%
 
4.07
%
 
14.4
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized discounts and loan costs
 
 
 
 
 
(41,329
)
 
 
 
 
 
 
Total debt per balance sheet
 
 
 
 
 
$
2,475,887

 
 
 
 
 
 
Year (2)
 
Floating Rate
 
Fixed Rate
 
Total
 
% of Total
2018
 
$
—

 
$
136,723

 
$
136,723

 
5.4
%
2019
 
—

 
68,564

 
$
68,564

 
2.7
%
2020
 
—

 
20,714

 
$
20,714

 
0.8
%
2021
 
—

 
20,714

 
$
20,714

 
0.8
%
2022
 
340,000

 
20,714

 
$
360,714

 
14.3
%
2023
 
—

 
20,714

 
$
20,714

 
0.8
%
2024
 
—

 
956,197

 
$
956,197

 
38.0
%
2025
 
—

 
10,302

 
$
10,302

 
0.4
%
2026
 
—

 
10,302

 
$
10,302

 
0.4
%
2027
 
—

 
10,302

 
$
10,302

 
0.4
%
Thereafter
 
—

 
901,970

 
$
901,970

 
36.0
%
Total
 
$
340,000

 
$
2,177,216

 
$
2,517,216

 
100.0
%
(1)     Interest rates on floating rate debt reflect stated rates as of period end.
(2)
Years to maturity and maturity schedule reflect all debt on a fully extended basis.
(3)
The interest rates shown above reflect the Company's LIBOR-based borrowing rates, based on 1-month LIBOR and applicable margin as of period end. Balances reflect borrowings outstanding as of December 31, 2017.


Interest Expense Reconciliation
 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
Interest expense per income statement
$
25,747

 
$
31,538

 
$
112,620

 
$
130,847

Less: noncash interest expense related to acquired debt
(925
)
 
(865
)
 
(3,549
)
 
(4,564
)
Interest expense included in Core FFO attributable to common share and unit holders
24,822

 
30,673

 
109,071

 
126,283

Less: amortization of deferred financing costs
(1,878
)
 
(2,640
)
 
(8,163
)
 
(10,767
)
Add: capitalized interest
2,485

 
713

 
5,656

 
2,290

Cash interest
$
25,429

 
$
28,746

 
$
106,564

 
$
117,806



 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
17

American Homes 4 Rent


Capital Structure as of December 31, 2017
(Amounts in thousands, except share and per share data)

Total Capitalization
Total Debt
 
 
$
2,517,216

 
22.9
%
 
 
 
 
 
 
Total preferred shares at liquidation value
 
 
986,986

 
9.0
%
 
 
 
 
 
 
Common equity at market value:
 
 
 
 
 
Common shares outstanding
286,749,712

 
 
 
 
Operating partnership units
55,350,153

 
 
 
 
Total shares and units
342,099,865

 
 
 
 
NYSE AMH Class A common share closing price at December 31, 2017
$
21.84

 
 
 
 
Market value of common shares and operating partnership units
 
 
7,471,461

 
68.1
%
 
 
 
 
 
 
Total Market Capitalization
 
 
$
10,975,663

 
100.0
%

Preferred Shares
 
 
Earliest
Redemption Date
 
Outstanding Shares
 
Liquidation Value (1)
 
Annual Dividend Per Share
 
Annual Dividend Amount
Series
 
 
 
Per Share
 
Total
 
 
5.500% Series C Participating Preferred Shares
 
3/31/2018
 
7,600,000

 
$
28.72

 
$
218,236

 
$
1.375

 
$
10,450

6.500% Series D Perpetual Preferred Shares
 
5/24/2021
 
10,750,000

 
$
25.00

 
268,750

 
$
1.625

 
17,469

6.350% Series E Perpetual Preferred Shares
 
6/29/2021
 
9,200,000

 
$
25.00

 
230,000

 
$
1.588

 
14,605

5.875% Series F Perpetual Preferred Shares
 
4/24/2022
 
6,200,000

 
$
25.00

 
155,000

 
$
1.469

 
9,106

5.875% Series G Perpetual Preferred Shares
 
7/17/2022
 
4,600,000

 
$
25.00

 
115,000

 
$
1.469

 
6,756

Total preferred shares at liquidation value
 
 
 
38,350,000

 
 
 
$
986,986

 
 
 
$
58,386

(1)
Liquidation value for Participating Preferred Shares reflects initial liquidation value of $25.00 per share, adjusted by most recent quarterly HPA adjustment calculation, which is made available under the “For Investors” page of the Company’s website.

Credit Ratios
 
 
Credit Ratings
 
 
 
 
 
 
 
 
 
 
 
 
Net Debt to Adjusted EBITDA
4.8 x

 
Rating Agency
 
Rating
 
Outlook
Debt and Preferred Shares to Adjusted EBITDA
6.9 x

 
Moody's Investor Service
 
Baa3
 
Stable
Fixed Charge Coverage
3.0 x

 
S&P Global Ratings
 
BBB-
 
Stable
Unencumbered Core NOI percentage
62.7
%
 
 
 
 
 
 






 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
18

American Homes 4 Rent


Top 20 Markets Summary as of December 31, 2017
Property Information (1)
Market
 
Number of
Properties
 
Percentage
of Total
Properties
 
Gross Book
Value per
Property
 
Avg.
Sq. Ft.
 
Avg. Age
(years)
Dallas-Fort Worth, TX
 
4,349
 
8.5
%
 
$
162,796

 
2,123

 
14.1
Atlanta, GA
 
4,521
 
8.9
%
 
168,825

 
2,134

 
16.3
Houston, TX
 
3,158
 
6.2
%
 
160,544

 
2,113

 
12.1
Charlotte, NC
 
3,430
 
6.7
%
 
185,588

 
2,078

 
14.3
Indianapolis, IN
 
2,897
 
5.7
%
 
151,488

 
1,933

 
15.3
Phoenix, AZ
 
2,823
 
5.5
%
 
163,680

 
1,820

 
15.1
Nashville, TN
 
2,604
 
5.1
%
 
204,460

 
2,113

 
13.5
Greater Chicago area, IL and IN
 
2,033
 
4.0
%
 
181,063

 
1,896

 
16.3
Cincinnati, OH
 
1,996
 
3.9
%
 
173,101

 
1,853

 
15.5
Raleigh, NC
 
2,040
 
4.0
%
 
181,619

 
1,872

 
13.1
Tampa, FL
 
2,032
 
4.0
%
 
190,991

 
1,949

 
13.9
Jacksonville, FL
 
2,009
 
3.9
%
 
164,945

 
1,933

 
13.5
Columbus, OH
 
1,933
 
3.8
%
 
166,603

 
1,865

 
16.1
Orlando, FL
 
1,644
 
3.2
%
 
173,305

 
1,884

 
16.6
Salt Lake City, UT
 
1,239
 
2.4
%
 
230,308

 
2,160

 
16.5
Las Vegas, NV
 
1,022
 
2.0
%
 
175,112

 
1,840

 
14.9
San Antonio, TX
 
1,021
 
2.0
%
 
157,454

 
2,015

 
14.4
Charleston, SC
 
978
 
1.9
%
 
188,831

 
1,936

 
11.6
Winston Salem, NC
 
781
 
1.5
%
 
151,356

 
1,741

 
14.0
Austin, TX
 
709
 
1.4
%
 
154,180

 
1,867

 
13.3
All Other (4)
 
7,710
 
15.4
%
 
191,133

 
1,892

 
14.4
Total / Average
 
50,929
 
100.0
%
 
$
176,106

 
1,976

 
14.6
Leasing Information (1)
Market
 
Leased
Percentage (2)
 
Avg. Occupied Days
Percentage (3)
 
Avg. Monthly Realized Rent
per property (3)
 
Avg. Change in Rent for Renewals (3)
 
Avg. Change in Rent for Re-Leases (3)
 
Avg. Blended Change in Rent (3)
Dallas-Fort Worth, TX
 
94.2
%
 
92.1
%
 
$
1,685

 
4.6
%
 
1.9
 %
 
3.5
%
Atlanta, GA
 
91.2
%
 
91.9
%
 
1,465

 
5.0
%
 
5.4
 %
 
5.2
%
Houston, TX
 
92.0
%
 
89.2
%
 
1,594

 
2.1
%
 
(1.8
)%
 
—
%
Charlotte, NC
 
87.6
%
 
85.4
%
 
1,537

 
3.6
%
 
(1.2
)%
 
1.8
%
Indianapolis, IN
 
96.1
%
 
94.3
%
 
1,351

 
3.8
%
 
1.3
 %
 
2.2
%
Phoenix, AZ
 
95.6
%
 
94.5
%
 
1,263

 
6.4
%
 
7.0
 %
 
6.6
%
Nashville, TN
 
92.2
%
 
90.4
%
 
1,659

 
3.8
%
 
(1.6
)%
 
1.3
%
Greater Chicago area, IL and IN
 
96.9
%
 
94.4
%
 
1,783

 
3.4
%
 
(0.1
)%
 
1.3
%
Cincinnati, OH
 
95.6
%
 
93.4
%
 
1,479

 
3.4
%
 
0.6
 %
 
1.7
%
Raleigh, NC
 
90.8
%
 
89.7
%
 
1,445

 
3.8
%
 
1.3
 %
 
2.7
%
Tampa, FL
 
93.1
%
 
88.7
%
 
1,678

 
3.6
%
 
0.2
 %
 
2.0
%
Jacksonville, FL
 
91.0
%
 
88.6
%
 
1,472

 
4.4
%
 
3.2
 %
 
3.8
%
Columbus, OH
 
86.8
%
 
85.3
%
 
1,524

 
4.4
%
 
1.3
 %
 
3.2
%
Orlando, FL
 
94.5
%
 
94.4
%
 
1,581

 
4.9
%
 
6.5
 %
 
5.5
%
Salt Lake City, UT
 
81.8
%
 
83.4
%
 
1,647

 
4.7
%
 
5.7
 %
 
5.2
%
Las Vegas, NV
 
97.9
%
 
96.3
%
 
1,443

 
5.0
%
 
5.4
 %
 
5.2
%
San Antonio, TX
 
93.5
%
 
90.9
%
 
1,499

 
3.7
%
 
(1.4
)%
 
1.5
%
Charleston, SC
 
86.3
%
 
86.0
%
 
1,605

 
3.2
%
 
0.7
 %
 
2.1
%
Winston Salem, NC
 
93.7
%
 
91.6
%
 
1,294

 
2.8
%
 
(0.4
)%
 
1.1
%
Austin, TX
 
95.3
%
 
91.3
%
 
1,484

 
4.4
%
 
(2.2
)%
 
0.8
%
All Other (4)
 
91.9
%
 
91.2
%
 
1,563

 
4.3
%
 
1.8
 %
 
3.1
%
Total / Average
 
92.3
%
 
90.8
%
 
$
1,536

 
4.2
%
 
1.6
 %
 
3.0
%
(1)
Property and leasing information excludes held for sale properties.
(2)
Reflected as of period end.
(3)
Reflected for the three months ended December 31, 2017.
(4)
Represents 22 markets in 16 states.

 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
19

American Homes 4 Rent


Leasing Performance
 
4Q17
 
3Q17
 
2Q17
 
1Q17
 
4Q16
Average Change in Rent for Renewals
4.2
%
 
3.6
%
 
3.2
%
 
3.1
%
 
3.3
%
Average Change in Rent for Re-leases
1.6
%
 
4.9
%
 
6.1
%
 
4.0
%
 
2.7
%
Average Blended Change in Rent
3.0
%
 
4.1
%
 
4.4
%
 
3.5
%
 
3.0
%

Scheduled Lease Expirations
 
MTM
 
1Q18
 
2Q18
 
3Q18
 
4Q18
 
Thereafter
Lease expirations
1,817

 
11,428

 
12,254

 
11,642

 
8,140

 
1,715


Top 20 Markets Home Price Appreciation Trends

The table below summarizes historic changes in 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”, which is used for purposes of computing the “HPA Factor” for our 5.5% Series C participating preferred shares as described in the prospectus for those securities.
 
 
HPA Index (1)
 
HPA Index Change
 
 
Dec 31, 2012
 
Dec 31, 2013
 
Dec 31, 2014
 
Dec 31, 2015
 
Dec 31,
2016
 
Mar 31,
2017
 
Jun 30,
2017
 
Sep 30, 2017
 
Market
 
 
 
 
 
 
 
 
 
Dallas-Fort Worth, TX (2)
 
100.0

 
108.4

 
115.2

 
127.6

 
140.1

 
143.4

 
150.0

 
152.4

 
52.4
%
Indianapolis, IN
 
100.0

 
106.4

 
112.3

 
117.8

 
124.5

 
123.4

 
131.5

 
132.6

 
32.6
%
Atlanta, GA
 
100.0

 
114.2

 
122.3

 
132.0

 
143.0

 
144.4

 
152.3

 
153.8

 
53.8
%
Charlotte, NC
 
100.0

 
113.4

 
118.8

 
126.8

 
136.6

 
142.4

 
144.0

 
144.4

 
44.4
%
Greater Chicago area, IL and IN
 
100.0

 
111.0

 
115.1

 
118.8

 
126.3

 
125.9

 
129.9

 
131.1

 
31.1
%
Houston, TX
 
100.0

 
110.8

 
123.1

 
130.1

 
133.0

 
132.7

 
133.6

 
133.9

 
33.9
%
Cincinnati, OH
 
100.0

 
104.9

 
111.2

 
115.7

 
121.4

 
121.0

 
126.8

 
129.6

 
29.6
%
Tampa, FL
 
100.0

 
113.0

 
121.1

 
132.3

 
149.1

 
149.9

 
158.1

 
158.6

 
58.6
%
Jacksonville, FL
 
100.0

 
114.2

 
121.7

 
127.7

 
142.3

 
147.8

 
148.2

 
154.0

 
54.0
%
Nashville, TN
 
100.0

 
111.0

 
117.4

 
131.1

 
141.1

 
145.9

 
151.5

 
151.7

 
51.7
%
Raleigh, NC
 
100.0

 
106.7

 
111.6

 
120.0

 
130.8

 
132.1

 
137.9

 
135.0

 
35.0
%
Phoenix, AZ
 
100.0

 
118.0

 
123.3

 
135.9

 
146.1

 
147.6

 
151.8

 
155.6

 
55.6
%
Columbus, OH
 
100.0

 
108.9

 
114.5

 
120.8

 
131.5

 
127.5

 
138.8

 
141.4

 
41.4
%
Salt Lake City, UT
 
100.0

 
109.4

 
114.5

 
123.2

 
133.0

 
138.3

 
142.1

 
145.3

 
45.3
%
Orlando, FL
 
100.0

 
110.3

 
123.5

 
135.4

 
144.9

 
149.8

 
154.4

 
155.4

 
55.4
%
Las Vegas, NV
 
100.0

 
125.1

 
141.3

 
149.0

 
161.5

 
164.3

 
170.3

 
177.1

 
77.1
%
San Antonio, TX
 
100.0

 
101.1

 
108.0

 
113.9

 
124.7

 
127.2

 
133.6

 
131.8

 
31.8
%
Denver, CO
 
100.0

 
111.0

 
121.5

 
136.5

 
149.9

 
156.7

 
162.9

 
163.3

 
63.3
%
Austin, TX
 
100.0

 
110.1

 
122.2

 
133.9

 
145.7

 
145.8

 
153.1

 
154.0

 
54.0
%
Greenville, SC
 
100.0

 
104.1

 
110.8

 
117.8

 
127.6

 
126.9

 
129.6

 
134.2

 
34.2
%
Average
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
46.8
%
(1)
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 September 30, 2017. For the illustrative purposes of this table, the HPA Index has been indexed as of December 31, 2012, and, as such, HPA Index values presented are relative measures calculated in relation to the baseline index value of 100.0 as of December 31, 2012.
(2)
Our Dallas-Fort Worth, TX market is comprised of the Dallas-Plano-Irving and Fort Worth-Arlington Metropolitan Divisions.

 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
20

American Homes 4 Rent


Disposition Summary
(Amounts in thousands, except property data)
 
 
Single-Family Properties Held for Sale (1)
 
Single-Family Properties
Sold 4Q17
Market
 
Vacant
 
Leased
 
Total
 
Number
of Properties
 
Net Proceeds
Greater Chicago area, IL and IN
 
59

 
90

 
149

 
140

 
$
8,867

Inland Empire, CA
 
5

 
34

 
39

 
5

 
1,202

Miami, FL
 
15

 
6

 
21

 
8

 
2,489

Central Valley, CA
 
9

 
10

 
19

 
13

 
2,689

Dallas-Fort Worth, TX
 
4

 
12

 
16

 
4

 
707

Atlanta, GA
 
5

 
7

 
12

 
3

 
324

Nashville, TN
 
2

 
3

 
5

 
3

 
590

Orlando, FL
 
5

 
—

 
5

 
—

 
—

Oklahoma City, OK
 
1

 
4

 
5

 
—

 
—

San Antonio, TX
 
3

 
1

 
4

 
3

 
444

Phoenix, AZ
 
2

 
2

 
4

 
1

 
99

Houston, TX
 
2

 
2

 
4

 
—

 
—

Raleigh, NC
 
3

 
—

 
3

 
—

 
—

Fort Myers, FL
 
3

 
—

 
3

 
—

 
—

Tucson, AZ
 
2

 
1

 
3

 
—

 
—

Memphis, TN
 
1

 
2

 
3

 
3

 
534

Knoxville, TN
 
3

 
—

 
3

 
—

 
—

Cincinnati, OH
 
1

 
1

 
2

 
—

 
—

Tampa, FL
 
2

 
—

 
2

 
—

 
—

Winston Salem, NC
 
2

 
—

 
2

 
—

 
—

Columbus, OH
 
—

 
1

 
1

 
—

 
—

Charleston, SC
 
1

 
—

 
1

 
—

 
—

Austin, TX
 
1

 
—

 
1

 
—

 
—

Indianapolis, IN
 
—

 
1

 
1

 
—

 
—

Bay Area, CA
 
1

 
—

 
1

 
—

 
—

Las Vegas, NV
 
1

 
—

 
1

 
—

 
—

Denver, CO
 
—

 
—

 
—

 
2

 
500

Total
 
133

 
177

 
310

 
185

 
$
18,445

(1)
Reflects single-family properties held for sale as of December 31, 2017.


ATM Share Issuance History
(Amounts in thousands, except share and per share data)
Quarterly Period
 
Common Shares Issued
 
Gross Proceeds
 
Average Issuance Price Per Share
4Q16
 
4,919,948

 
$
103,983

 
$
21.13

1Q17
 
629,532

 
14,304

 
22.72

2Q17
 
222,073

 
5,066

 
22.81

3Q17
 
1,181,493

 
26,855

 
22.73

4Q17
 
—

 
—

 
—

Total
 
6,953,046

 
$
150,208

 
$
21.60

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Remaining authorization:

 
$
500,000

 
 

 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
21

American Homes 4 Rent


2018 Outlook
 
 
Full Year 2018
Same-Home
 
 
Average Occupied Days Percentage
 
94.5% - 95.5%
Core revenues growth
 
3.5% - 4.5%
Core property operating expenses growth
 
4.0% - 5.0%
Core NOI After Capital Expenditures growth
 
3.0% - 4.0%
Core NOI margin
 
64.0% - 65.0%
Property tax expense growth
 
3.5% - 4.5%
Average R&M and turnover costs, net, plus Recurring Capital Expenditures per property
 
$1,950 - $2,100
 
 
 
Property Enhancing Capex
 
$8 - $12 million
 
 
 
General and administrative expense, excluding noncash share-based compensation
 
$33.5 - $35.5 million
 
 
 
Acquisition volume
 
$400 - $600 million
Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income or loss, total revenues and property operating expenses, or a reconciliation of the above-listed forward-looking non-GAAP financial measures to the comparable GAAP financial measures because we are unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, net gain or loss on sales and impairment of single-family properties, casualty loss, Non-Same-Home revenues, Non-Same-Home property operating expenses and noncash fair value adjustments associated with remeasuring our participating preferred shares derivative liability to fair value. These items are uncertain, depend on various factors and could have a material impact on our GAAP results for the guidance period.


 
 
 
Refer to "Defined Terms and Non-GAAP Reconciliations" for definitions of metrics and reconciliations to GAAP.
 
22

American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations
Average Blended Change in Rent
The percentage change in rent on all non-month-to-month lease renewals and re-leases during the period, compared to the annual rent of the previous expired non-month-to-month lease for each individual property.

Average Change in Rent for Re-Leases
The percentage change in annual rent on properties re-leased during the period, compared to the annual rent of the previous expired lease for each individual property.

Average Change in Rent for Renewals
The percentage change in rent on non-month-to-month lease renewals during the period.

Average Monthly Realized Rent
For the related period, Average Monthly Realized Rent is calculated as rents from single-family properties divided by the product of (a) number of properties and (b) Average Occupied Days Percentage, divided by the number of months. For properties partially owned during the period, this calculation is adjusted to reflect the number of days of ownership.

Average Occupied Days Percentage
The number of days a property is occupied in the period divided by the total number of days the property is owned during the same period. This calculation is based on single-family properties and excludes held for sale properties.

Core Net Operating Income ("Core NOI") and Same-Home Core NOI After Capital Expenditures
Core NOI, which we also present separately for our Same-Home, unencumbered and encumbered portfolios, is a supplemental non-GAAP financial measure that we define as core revenues, which is calculated as rents and fees from single-family properties, net of bad debt expense, less core property operating expenses, which is calculated as property operating and property management expenses, excluding noncash share-based compensation expense, expenses reimbursed by tenant charge-backs and bad debt expense.

Core NOI also excludes (1) noncash fair value adjustments associated with remeasuring our participating preferred shares derivative liability to fair value, (2) noncash gain or loss on conversion of shares or units, (3) gain or loss on early extinguishment of debt, (4) hurricane-related charges, net, (5) gain or loss on sales of single-family properties and other, (6) depreciation and amortization, (7) acquisition fees and costs expensed incurred with recent business combinations and the acquisition of individual properties, (8) noncash share-based compensation expense, (9) interest expense, (10) general and administrative expense, (11) other expenses and (12) other revenues. We believe Core NOI provides useful information to investors about the operating performance of our single-family properties without the impact of certain operating expenses that are reimbursed through tenant charge-backs. We further adjust Core NOI for our Same-Home portfolio by subtracting recurring capital expenditures to calculate Same-Home Core NOI After Capital Expenditures, which we believe provides useful information to investors because it more fully reflects our operating performance after the impact of all property-level expenditures, regardless of whether they are capitalized or expensed.

Core NOI and Same-Home Core NOI After Capital Expenditures should be considered only as supplements to net income or loss as a measure of our performance and 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. Additionally, these metrics should not be used as substitutes for net income or loss or net cash flows from operating activities (as computed in accordance with GAAP).



 
 
 
 
 
23


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
The following are reconciliations of core revenues, core property operating expenses, Core NOI, Same-Home Core NOI, Same-Home Core NOI After Capital Expenditures, Unencumbered Core NOI and Encumbered Core NOI to their respective GAAP metrics for the quarters and years ended December 31, 2017 and 2016 (amounts in thousands):
 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Core revenues
 
 
 
 
 
 
 
Total revenues
$
242,801

 
$
227,559

 
$
960,399

 
$
878,889

Tenant charge-backs
(28,232
)
 
(23,177
)
 
(120,081
)
 
(95,254
)
Bad debt expense
(2,186
)
 
(1,877
)
 
(7,328
)
 
(6,969
)
Other revenues
(1,201
)
 
(2,987
)
 
(5,568
)
 
(15,798
)
Core revenues
$
211,182

 
$
199,518

 
$
827,422

 
$
760,868

Core property operating expenses
 
 
 
 
 
 
 
Property operating expenses
$
87,871

 
$
78,323

 
$
355,074

 
$
317,310

Property management expenses
17,345

 
17,547

 
69,712

 
70,724

Noncash share-based compensation - property management
(391
)
 
(394
)
 
(1,649
)
 
(1,560
)
Expenses reimbursed by tenant charge-backs
(28,232
)
 
(23,177
)
 
(120,081
)
 
(95,254
)
Bad debt expense
(2,186
)
 
(1,877
)
 
(7,328
)
 
(6,969
)
Core property operating expenses
$
74,407

 
$
70,422

 
$
295,728

 
$
284,251

Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures
 
 
 
 
Net income
$
30,533

 
$
9,338

 
$
76,492

 
$
10,446

Remeasurement of participating preferred shares
(1,500
)
 
4,080

 
(2,841
)
 
7,020

Gain on conversion of Series E units
—

 
—

 
—

 
(11,463
)
Loss on early extinguishment of debt
—

 
—

 
6,555

 
13,408

Hurricane-related charges, net
(2,173
)
 
—

 
7,963

 
—

Gain on sale of single-family properties and other, net
(451
)
 
(1,995
)
 
(6,826
)
 
(14,569
)
Depreciation and amortization
75,831

 
74,164

 
297,290

 
298,677

Acquisition fees and costs expensed
809

 
544

 
4,623

 
11,443

Noncash share-based compensation - property management
391

 
394

 
1,649

 
1,560

Interest expense
25,747

 
31,538

 
112,620

 
130,847

General and administrative expense
7,986

 
8,524

 
34,732

 
33,068

Other expenses
803

 
5,496

 
5,005

 
11,978

Other revenues
(1,201
)
 
(2,987
)
 
(5,568
)
 
(15,798
)
Tenant charge-backs
28,232

 
23,177

 
120,081

 
95,254

Expenses reimbursed by tenant charge-backs
(28,232
)
 
(23,177
)
 
(120,081
)
 
(95,254
)
Bad debt expense excluded from operating expenses
2,186

 
1,877

 
7,328

 
6,969

Bad debt expense included in revenues
(2,186
)
 
(1,877
)
 
(7,328
)
 
(6,969
)
Core NOI
136,775

 
129,096

 
531,694

 
476,617

Less: Non-Same-Home Core NOI
33,207

 
27,268

 
122,429

 
87,337

Same-Home Core NOI
103,568

 
101,828

 
409,265

 
389,280

Less: Same-Home recurring capital expenditures
5,706

 
5,381

 
25,150

 
27,572

Same-Home Core NOI After Capital Expenditures
$
97,862

 
$
96,447

 
$
384,115

 
$
361,708

Unencumbered Core NOI and Encumbered Core NOI
 
 
 
 
 
 
 
Core NOI
$
136,775

 
$
129,096

 
$
531,694

 
$
476,617

Less: Encumbered Core NOI
50,952

 
50,752

 
201,941

 
193,814

Unencumbered Core NOI
$
85,823

 
$
78,344

 
$
329,753

 
$
282,803


 
 
 
 
 
24


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
The following are reconciliations of core revenues, core property operating expenses, Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures to their respective GAAP metrics for the trailing five quarters (amounts in thousands):
 
For the Three Months Ended
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Core revenues
 
 
 
 
 
 
 
 
 
Total revenues
$
242,801

 
$
246,836

 
$
237,008

 
$
233,754

 
$
227,559

Tenant charge-backs
(28,232
)
 
(36,094
)
 
(27,382
)
 
(28,373
)
 
(23,177
)
Bad debt expense
(2,186
)
 
(2,299
)
 
(1,333
)
 
(1,510
)
 
(1,877
)
Other revenues
(1,201
)
 
(409
)
 
(2,288
)
 
(1,670
)
 
(2,987
)
Core revenues
$
211,182

 
$
208,034

 
$
206,005

 
$
202,201

 
$
199,518

Core property operating expenses
 
 
 
 
 
 
 
 
 
Property operating expenses
$
87,871

 
$
97,944

 
$
85,954

 
$
83,305

 
$
78,323

Property management expenses
17,345

 
17,447

 
17,442

 
17,478

 
17,547

Noncash share-based compensation - property management
(391
)
 
(417
)
 
(424
)
 
(417
)
 
(394
)
Expenses reimbursed by tenant charge-backs
(28,232
)
 
(36,094
)
 
(27,382
)
 
(28,373
)
 
(23,177
)
Bad debt expense
(2,186
)
 
(2,299
)
 
(1,333
)
 
(1,510
)
 
(1,877
)
Core property operating expenses
$
74,407

 
$
76,581

 
$
74,257

 
$
70,483

 
$
70,422

Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures
Net income
$
30,533

 
$
19,097

 
$
15,066

 
$
11,796

 
$
9,338

Remeasurement of participating preferred shares
(1,500
)
 
(8,391
)
 
1,640

 
5,410

 
4,080

Loss on early extinguishment of debt
—

 
—

 
6,555

 
—

 
—

Hurricane-related charges, net
(2,173
)
 
10,136

 
—

 
—

 
—

Gain on sale of single-family properties and other, net
(451
)
 
(1,895
)
 
(2,454
)
 
(2,026
)
 
(1,995
)
Depreciation and amortization
75,831

 
74,790

 
72,716

 
73,953

 
74,164

Acquisition fees and costs expensed
809

 
1,306

 
1,412

 
1,096

 
544

Noncash share-based compensation - property management
391

 
417

 
424

 
417

 
394

Interest expense
25,747

 
26,592

 
28,392

 
31,889

 
31,538

General and administrative expense
7,986

 
8,525

 
8,926

 
9,295

 
8,524

Other expenses
803

 
1,285

 
1,359

 
1,558

 
5,496

Other revenues
(1,201
)
 
(409
)
 
(2,288
)
 
(1,670
)
 
(2,987
)
Tenant charge-backs
28,232

 
36,094

 
27,382

 
28,373

 
23,177

Expenses reimbursed by tenant charge-backs
(28,232
)
 
(36,094
)
 
(27,382
)
 
(28,373
)
 
(23,177
)
Bad debt expense excluded from operating expenses
2,186

 
2,299

 
1,333

 
1,510

 
1,877

Bad debt expense included in revenues
(2,186
)
 
(2,299
)
 
(1,333
)
 
(1,510
)
 
(1,877
)
Core NOI
136,775

 
131,453

 
131,748

 
131,718

 
129,096

Less: Non-Same-Home Core NOI
33,207

 
31,031

 
29,379

 
28,812

 
27,268

Same-Home Core NOI
103,568

 
100,422

 
102,369

 
102,906

 
101,828

Less: Same-Home recurring capital expenditures
5,706

 
7,951

 
6,472

 
5,021

 
5,381

Same-Home Core NOI After Capital Expenditures
$
97,862

 
$
92,471

 
$
95,897

 
$
97,885

 
$
96,447





 
 
 
 
 
25


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
Credit Ratios
We present the following selected metrics because we believe they are helpful as supplemental measures in assessing the Company’s ability to service its financing obligations and in evaluating balance sheet leverage against that of other real estate companies. The tables below reconcile these metrics, which are calculated in part based on several non-GAAP financial measures.

Debt and Preferred Shares to Adjusted EBITDA
 
 
Dec 31,
2017
 
 
(Unaudited)
Total Debt
 
$
2,517,216

Preferred shares at liquidation value (1)
 
986,986

Total Debt and preferred shares
 
3,504,202

 
 
 
Adjusted EBITDA - TTM
 
$
504,768

 
 
 
Debt and Preferred Shares to Adjusted EBITDA
 
6.9 x

(1)
All of the outstanding Series A and Series B participating preferred shares were converted into 12,398,276 Class A common shares during the fourth quarter of 2017, based on a conversion ratio of 1.3106 common shares per preferred share in accordance with the conversion terms in the Articles Supplementary.

Fixed Charge Coverage
 
 
For the Trailing Twelve Months Ended Dec 31, 2017
 
 
(Unaudited)
Interest expense per income statement
 
$
112,620

Less: noncash interest expense related to acquired debt
 
(3,549
)
Less: amortization of deferred financing costs
 
(8,163
)
Add: capitalized interest
 
5,656

Cash interest
 
106,564

Dividends on preferred shares
 
60,718

Fixed charges
 
167,282

 
 
 
Adjusted EBITDA
 
$
504,768

 
 
 
Fixed Charge Coverage
 
3.0 x


Net Debt to Adjusted EBITDA
 
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Total Debt
 
$
2,517,216

 
$
2,382,871

 
$
2,480,787

 
$
2,999,587

 
$
2,981,062

Less: cash and cash equivalents
 
(46,156
)
 
(243,547
)
 
(67,325
)
 
(495,802
)
 
(118,799
)
Less: asset-backed securitization certificates
 
(25,666
)
 
(25,666
)
 
(25,666
)
 
(25,666
)
 
(25,666
)
Less: restricted cash related to securitizations
 
(46,203
)
 
(46,166
)
 
(56,058
)
 
(63,147
)
 
(62,062
)
Net debt
 
$
2,399,191

 
$
2,067,492

 
$
2,331,738

 
$
2,414,972

 
$
2,774,535

 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA - TTM
 
$
504,768

 
$
496,105

 
$
487,562

 
$
477,578

 
$
454,415

 
 
 
 
 
 
 
 
 
 
 
Net Debt to Adjusted EBITDA
 
4.8 x

 
4.2 x

 
4.8 x

 
5.1 x

 
6.1 x


 
 
 
 
 
26


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
Unencumbered Core NOI Percentage
 
For the Three Months Ended
Dec 31, 2017
 
(Unaudited)
Unencumbered Core NOI
$
85,823

Core NOI
$
136,775

Unencumbered Core NOI Percentage
62.7
%

EBITDA / Adjusted EBITDA / Adjusted EBITDA after Capex and Leasing Costs / Adjusted EBITDA Margin / Adjusted EBITDA after Capex and Leasing Costs Margin
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure and is used by us and others as a supplemental measure of performance. Adjusted EBITDA is a supplemental non-GAAP financial measure calculated by adjusting EBITDA for (1) acquisition fees and costs expensed incurred with recent business combinations and the acquisition of individual properties, (2) net gain or loss on sales / impairment of single-family properties and other, (3) noncash share-based compensation expense, (4) hurricane-related charges, net, (5) gain or loss on early extinguishment of debt, (6) gain or loss on conversion of shares and units and (7) noncash fair value adjustments associated with remeasuring our participating preferred shares derivative liability to fair value. Adjusted EBITDA after Capex and Leasing Costs is a supplemental non-GAAP financial measure calculated by adjusting Adjusted EBITDA for (1) recurring capital expenditures and (2) leasing costs. Adjusted EBITDA Margin is a supplemental non-GAAP financial measure calculated as Adjusted EBITDA divided by total revenues, net of tenant charge-backs. Adjusted EBITDA after Capex and Leasing Costs Margin is a supplemental non-GAAP financial measure calculated as Adjusted EBITDA after Capex and Leasing costs divided by total revenues, net of tenant charge-backs. We believe these metrics provide useful information to investors because they exclude the impact of various income and expense items that are not indicative of operating performance.

 
 
 
 
 
27


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
The following is a reconciliation of net income or loss, as determined in accordance with GAAP, to EBITDA, Adjusted EBITDA, Adjusted EBITDA after Capex and Leasing Costs, Adjusted EBITDA Margin and Adjusted EBITDA after Capex and Leasing Costs Margin for the quarters and years ended December 31, 2017 and 2016 (amounts in thousands):
 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Net income
$
30,533

 
$
9,338

 
$
76,492

 
$
10,446

Interest expense
25,747

 
31,538

 
112,620

 
130,847

Depreciation and amortization
75,831

 
74,164

 
297,290

 
298,677

EBITDA
$
132,111

 
$
115,040

 
$
486,402

 
$
439,970

 
 
 
 
 
 
 
 
Noncash share-based compensation - general and administrative
646

 
498

 
2,563

 
2,076

Noncash share-based compensation - property management
391

 
394

 
1,649

 
1,560

Acquisition fees and costs expensed
809

 
544

 
4,623

 
11,443

Net loss (gain) on sale / impairment of single-family properties and other
443

 
1,508

 
(2,146
)
 
(9,599
)
Hurricane-related charges, net
(2,173
)
 
—

 
7,963

 
—

Loss on early extinguishment of debt
—

 
—

 
6,555

 
13,408

Gain on conversion of Series E units
—

 
—

 
—

 
(11,463
)
Remeasurement of participating preferred shares
(1,500
)
 
4,080

 
(2,841
)
 
7,020

Adjusted EBITDA
$
130,727

 
$
122,064

 
$
504,768

 
$
454,415

 
 
 
 
 
 
 
 
Recurring capital expenditures (1)
(7,501
)
 
(6,353
)
 
(32,556
)
 
(31,536
)
Leasing costs
(2,029
)
 
(1,806
)
 
(7,390
)
 
(8,005
)
Adjusted EBITDA after Capex and Leasing Costs
$
121,197

 
$
113,905

 
$
464,822

 
$
414,874

 
 
 
 
 
 
 
 
Total revenues
242,801

 
227,559

 
960,399

 
878,889

Less: tenant charge-backs
(28,232
)
 
(23,177
)
 
(120,081
)
 
(95,254
)
Total revenues, net of tenant charge-backs
214,569

 
204,382

 
840,318

 
783,635

 
 
 
 
 
 
 
 
Adjusted EBITDA Margin
60.9
%
 
59.7
%
 
60.1
%
 
58.0
%
 
 
 
 
 
 
 
 
Adjusted EBITDA after Capex and Leasing Costs Margin
56.5
%
 
55.7
%
 
55.3
%
 
52.9
%
(1)
As a portion of our homes are recently acquired and / or renovated, we estimate recurring capital expenditures for our entire portfolio by multiplying (a) current period actual capital expenditures per Same-Home Property by (b) our total number of properties, excluding non-stabilized and held for sale properties.


 
 
 
 
 
28


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
The following is a reconciliation of net income or loss, as determined in accordance with GAAP, to EBITDA and Adjusted EBITDA for the following trailing twelve-month periods (amounts in thousands):
 
For the Trailing Twelve Months Ended
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Net income
$
76,492

 
$
55,297

 
$
36,033

 
$
17,214

 
$
10,446

Interest expense
112,620

 
118,411

 
124,670

 
131,759

 
130,847

Depreciation and amortization
297,290

 
295,623

 
296,225

 
303,113

 
298,677

EBITDA
486,402

 
469,331

 
456,928

 
452,086

 
439,970

 
 
 
 
 
 
 
 
 
 
Noncash share-based compensation - general and administrative
2,563

 
2,415

 
2,196

 
2,084

 
2,076

Noncash share-based compensation - property management
1,649

 
1,652

 
1,646

 
1,620

 
1,560

Acquisition fees and costs expensed
4,623

 
4,358

 
4,809

 
6,886

 
11,443

Net (gain) on sale / impairment of single-family properties and other
(2,146
)
 
(1,081
)
 
(11,600
)
 
(10,636
)
 
(9,599
)
Hurricane-related charges, net
7,963

 
10,136

 
—

 
—

 
—

Loss on early extinguishment of debt
6,555

 
6,555

 
19,963

 
13,408

 
13,408

Gain on conversion of Series E units
—

 
—

 
—

 
—

 
(11,463
)
Remeasurement of participating preferred shares
(2,841
)
 
2,739

 
13,620

 
12,130

 
7,020

Adjusted EBITDA
$
504,768

 
$
496,105

 
$
487,562

 
$
477,578

 
$
454,415


FFO / Core FFO / Adjusted FFO attributable to common share and unit holders
FFO attributable to common share and unit holders 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 or impairment of 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 attributable to common share and unit holders is a non-GAAP financial measure that we use as a supplemental measure of our performance. We compute this metric by adjusting FFO attributable to common share and unit holders for (1) acquisition fees and costs expensed incurred with recent business combinations and the acquisition of individual properties, (2) noncash share-based compensation expense, (3) noncash interest expense related to acquired debt, (4) hurricane-related charges, net, (5) gain or loss on early extinguishment of debt, (6) noncash gain or loss on redemption or conversion of shares or units and (7) noncash fair value adjustments associated with remeasuring our participating preferred shares derivative liability to fair value.

Adjusted FFO attributable to common share and unit holders is a non-GAAP financial measure that we use as a supplemental measure of our performance. We compute this metric by adjusting Core FFO attributable to common share and unit holders for (1) recurring capital expenditures that are necessary to help preserve the value and maintain functionality of our properties and (2) actual leasing costs incurred during the period. As a portion of our homes are recently acquired and/or renovated, we estimate recurring capital expenditures for our entire portfolio by multiplying (a) current period actual capital expenditures per Same-Home Property by (b) our total number of properties, excluding non-stabilized and held for sale properties.

We present FFO attributable to common share and unit holders, as well as on a per FFO share and unit basis, because we consider this metric to be an important measure of the performance of real estate companies, as do many investors and analysts in evaluating the Company. We believe that FFO attributable to common share and unit holders provides useful information to investors because this metric 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.

 
 
 
 
 
29


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
We also believe that Core FFO and Adjusted FFO attributable to common share and unit holders, as well as on a per FFO share and unit basis, provide useful information to investors because 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, Core FFO and Adjusted FFO attributable to common share and unit holders are not a substitute for net income or loss per share or net cash flow provided by operating activities, as determined in accordance with GAAP, as a measure of our operating performance, liquidity or ability to pay dividends. These metrics also are not necessarily indicative of cash available to fund future cash needs. Because other REITs may not compute these measures in the same manner, they may not be comparable among REITs.

Refer to Funds from Operations for a reconciliation of these metrics to net income or loss attributable to common shareholders, determined in accordance with GAAP.

FFO Shares and Units
Includes weighted-average common shares and operating partnership units outstanding, as well as potentially dilutive securities.

Leased Property
A property is classified as leased upon the execution (i.e., signature) of a lease agreement.

Occupied Property
A property is classified as occupied upon commencement (i.e., start date) of a lease agreement, which can occur contemporaneously with or subsequent to execution (i.e., signature).


 
 
 
 
 
30


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
Platform Efficiency Percentage
Management costs, including (1) property management expenses, net of tenant charge-backs and excluding noncash share-based compensation expense, (2) general and administrative expense, excluding noncash share-based compensation expense and (3) leasing costs, as a percentage of total portfolio rents and fees.
 
For the Three Months Ended
Dec 31,
 
For the Years Ended
Dec 31,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
 
(Unaudited)
Property management expenses
$
17,345

 
$
17,547

 
$
69,712

 
$
70,724

Less: tenant charge-backs
(1,290
)
 
(1,416
)
 
(5,154
)
 
(5,409
)
Less: noncash share-based compensation - property management
(391
)
 
(394
)
 
(1,649
)
 
(1,560
)
Property management expenses, net
15,664

 
15,737

 
62,909

 
63,755

 
 
 
 
 
 
 
 
General and administrative expense
7,986

 
8,524

 
34,732

 
33,068

Less: noncash share-based compensation - general and administrative
(646
)
 
(498
)
 
(2,563
)
 
(2,076
)
General and administrative expense, net
7,340

 
8,026

 
32,169

 
30,992

 
 
 
 
 
 
 
 
Leasing costs
2,029

 
1,806

 
7,390

 
8,005

Platform costs
$
25,033

 
$
25,569

 
$
102,468

 
$
102,752

 
 
 
 
 
 
 
 
Rents from single-family properties
$
210,778

 
$
198,980

 
$
824,023

 
$
757,603

Fees from single-family properties
2,590

 
2,415

 
10,727

 
10,234

Total portfolio rents and fees
$
213,368

 
$
201,395

 
$
834,750

 
$
767,837

 
 
 
 
 
 
 
 
Platform Efficiency Percentage
11.7
%
 
12.7
%
 
12.3
%
 
13.4
%

Property Enhancing Capex
Includes elective capital expenditures to enhance the operating profile of a property, such as investments to increase future revenues or reduce maintenance expenditures.

Recurring Capital Expenditures
For our Same-Home portfolio, includes replacement costs and other capital expenditures recorded during the period that are necessary to help preserve the value and maintain functionality of our properties. For our total portfolio, we calculate recurring capital expenditures by multiplying (a) current period actual recurring capital expenditures per Same-Home property by (b) our total number of properties, excluding non-stabilized and held for sale properties.

Same-Home Property
A property is classified as Same-Home if it has been stabilized longer than 90 days prior to the beginning of the earliest period presented under comparison. A property is removed from Same-Home if it has been classified as held for sale or has been taken out of service as a result of a casualty loss.

Stabilized Property
A property acquired individually (i.e., not through a bulk purchase) is classified as stabilized once it has been renovated or newly constructed and then initially leased or available for rent for a period greater than 90 days. Properties acquired through a bulk purchase are considered stabilized, as an entire group, provided (1) we have owned them for an adequate period of time to allow for complete on-boarding to our operating platform, and (2) a substantial portion of the properties have experienced tenant turnover at least once under our ownership, providing the opportunity for renovations and improvements to meet our property standards.


 
 
 
 
 
31


American Homes 4 Rent


Defined Terms and Non-GAAP Reconciliations (continued)
Total Debt
Includes principal balances on asset-backed securitizations, exchangeable senior notes, secured notes payable and borrowings outstanding under our revolving credit facility and term loan facility as of period end, and excludes unamortized discounts on acquired debt, the value of exchangeable senior notes classified within equity and unamortized deferred financing costs.

Total Market Capitalization
Includes the market value of all outstanding common shares and operating partnership units (based on the NYSE AMH Class A common share closing price as of period end), the current liquidation value of preferred shares as of period end and Total Debt.

Turnover Rate
The number of tenant move-outs during the period, divided by the total number of properties.

 
 
 
 
 
32


Executive Management
 
 
 
David P. Singelyn
 
Jack Corrigan
Chief Executive Officer
 
Chief Operating Officer
 
 
 
Diana M. Laing
 
Sara H. Vogt-Lowell
Chief Financial Officer
 
Chief Legal Officer
 
 
 
David Goldberg
 
Stephanie Heim
Executive Vice President
 
Executive Vice President - Counsel & Assistant Secretary
 
 
 
Christopher C. Lau
 
Bryan Smith
Executive Vice President - Finance
 
Executive Vice President - President of Property Management
 
 
 
Corporate Information
 
Investor Relations
 
 
 
American Homes 4 Rent
 
(855) 794-AH4R (2447)
30601 Agoura Road, Suite 200
 
investors@ah4r.com
Agoura Hills, CA 91301
 
 
(805) 413-5300
 
 
www.americanhomes4rent.com
 
 
ah4rpmmapusedinsupp.jpg
Analyst Coverage (1)
 
 
 
 
 
 
 
Bank of America Merrill Lynch
B. Riley FBR, Inc.
BTIG
Citi
Juan Sanabria
David Corak
Ryan Gilbert
Michael Bilerman
juan.sanabria@baml.com
dcorak@brileyfbr.com
rgilbert@btig.com
michael.bilerman@citi.com
 
 
 
 
Credit Suisse
Evercore ISI
Green Street Advisors
GS Global Investment Research
Douglas Harter
Steve Sakwa
John Pawlowski
Andrew Rosivach
douglas.harter@credit-suisse.com
steve.sakwa@evercoreisi.com
jpawlowski@greenst.com
andrew.rosivach@gs.com
 
 
 
 
JMP Securities
JP Morgan Securities
Keefe, Bruyette & Woods, Inc.
Mizuho Securities USA Inc.
Aaron Hecht
Anthony Paolone
Jade Rahmani
Haendel St. Juste
ahecht@jmpsecurities.com
anthony.paolone@jpmorgan.com
jrahmani@kbw.com
haendel.st.juste@us.mizuho-sc.com
 
 
 
 
Morgan Stanley
Raymond James & Associates, Inc.
Wells Fargo Securities
Zelman & Associates
Richard Hill
Buck Horne
Jeff Donnelly
Dennis McGill
richard.hill1@morganstanley.com
buck.horne@raymondjames.com
jeff.donnelly@wellsfargo.com
dennis@zelmanassociates.com

(1)
The sell-side analysts listed above follow American Homes 4 Rent ("AMH"). Any opinions, estimates or forecasts regarding AMH's performance made by these analysts are theirs alone and do not represent the opinions, forecasts or predictions of AMH or its management. AMH does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions, or recommendations. The above list may not be complete and is subject to change as firms add or discontinue coverage.