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Sep 30, 2022
American Homes 4 Rent Q3 2022 Earnings Report
American Homes 4 Rent's Q3 2022 financial performance was marked by increased revenues and net income, driven by portfolio growth and higher rental rates, despite hurricane-related charges.
Key Takeaways
American Homes 4 Rent reported a 15.3% increase in single-family property revenues, reaching $391.6 million. Net income attributable to common shareholders was $50.7 million, or $0.14 per diluted share. The company achieved a Same-Home Average Occupied Days Percentage of 97.1% and a 12.5% rate growth on new leases. However, Hurricane Ian impacted certain properties, resulting in net hurricane-related charges of $6.1 million.
Rents and other single-family property revenues increased 15.3% year-over-year to $391.6 million.
Net income attributable to common shareholders totaled $50.7 million, or $0.14 per diluted share.
Core Funds from Operations (FFO) attributable to common share and unit holders increased 11.6% year-over-year to $0.39 per FFO share and unit.
Achieved Same-Home Average Occupied Days Percentage of 97.1% and generated 12.5% rate growth on new leases.
American Homes 4 Rent
American Homes 4 Rent
American Homes 4 Rent Revenue by Segment
Revenue by Segment
Single-family rental Revenue
CapyFin.com Forward Guidance
Full Year 2022 Guidance was revised to reflect higher than expected property tax growth in the state of Texas.
Positive Outlook
- Same-Home core revenues growth outlook remains unchanged, as the Company’s portfolio continues to experience seasonally strong demand relative to pre-pandemic levels.
- Excluding property taxes, Same-Home core operating expense growth outlook remains unchanged.
- The Company continues to execute on its moderated acquisition program.
- Development deliveries reflect modest reduction due to hurricane-related delays in certain Florida development projects.
- The Company has modestly lowered property and land acquisition expectations, which are not expected to have a material impact on 2022 Full Year Core FFO per share.
Challenges Ahead
- Including property taxes, the midpoint of Same-Home core operating expense growth has been increased by 200 basis points to reflect higher than expected property tax growth in the state of Texas.
- Property taxes within our Texas portfolio are expected to increase by over 20% this year.
- As a result of the increased 2022 property tax outlook, the midpoint of our full year Same-Home Core NOI growth outlook has been lowered by 100 basis points, resulting in a ($0.02) impact to Core FFO per share.
- Development deliveries reflect modest reduction due to hurricane-related delays in certain Florida development projects.
- The Company has modestly lowered property and land acquisition expectations, which are not expected to have a material impact on 2022 Full Year Core FFO per share.