Sep 30, 2021

American Homes 4 Rent Q3 2021 Earnings Report

Reported strong operational execution and increased full-year Core FFO per share growth expectations.

Key Takeaways

American Homes 4 Rent reported a strong third quarter with rents and other single-family property revenues increasing 10.3% year-over-year to $339.6 million. Net income attributable to common shareholders totaled $36.9 million, or $0.11 per diluted share. The company raised its full-year 2021 Core FFO attributable to common share and unit holders guidance midpoint by $0.04 per share and unit to $1.36.

Rents and other single-family property revenues increased 10.3% year-over-year to $339.6 million for the third quarter of 2021.

Net income attributable to common shareholders totaled $36.9 million, or $0.11 per diluted share, for the third quarter of 2021.

Achieved Same-Home Average Occupied Days Percentage of 97.4% in the third quarter of 2021, while generating 15.9% rate growth on new leases.

Raised Full Year 2021 Core FFO attributable to common share and unit holders guidance midpoint by $0.04 per share and unit to $1.36, representing anticipated full year growth of 17.2% over prior year.

Total Revenue
$340M
Previous year: $311M
+9.3%
EPS
$0.35
Previous year: $0.29
+20.7%
Average Occupied Days %
97.4%
Previous year: 96.9%
+0.5%
Cash and Equivalents
$64M
Previous year: $316M
-79.7%
Total Assets
$10.5B
Previous year: $9.6B
+9.4%

American Homes 4 Rent

American Homes 4 Rent

American Homes 4 Rent Revenue by Segment

Forward Guidance

Updates to Full Year 2021 guidance reflect strengthened core revenues outlook primarily driven by strong occupancy and leasing results as well as additional contribution from our external growth program which we have increased by approximately $200 million to a new range of $1.6 billion to $1.8 billion, which now includes between 3,700 and 4,100 wholly-owned inventory additions as well as increased investments into our wholly-owned land and development pipeline and pro-rata share of joint venture investments. When combined with 100% of gross joint venture investments, we now expect to deploy total gross capital of $1.8 billion to $2.0 billion for the year.

Positive Outlook

  • Strengthened core revenues outlook
  • Strong occupancy and leasing results
  • Additional contribution from our external growth program
  • Increased wholly-owned inventory additions
  • Increased investments into our wholly-owned land and development pipeline and pro-rata share of joint venture investments

Challenges Ahead

  • Extent to which the pandemic may continue to impact us and our residents will continue to depend on future developments.
  • Resurgences, new variants or strains, such as the Delta variant, the impact of government regulations.
  • Vaccine adoption rates (including boosters), the effectiveness of vaccines, employee retention issues resulting from vaccine mandates.
  • Direct and indirect economic effects of the pandemic and containment measures.
  • Future revisions to our guidance estimates may be needed.