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Dec 31, 2022
American Homes 4 Rent Q4 2022 Earnings Report
AMH's Q4 2022 financial performance showcased strong revenue growth and increased profitability, driven by a larger occupied portfolio and higher rental rates.
Key Takeaways
AMH reported a strong fourth quarter in 2022, with rents and other single-family property revenues increasing by 12.7% to $380.9 million. Net income attributable to common shareholders totaled $87.5 million, or $0.25 per diluted share. The company achieved a Same-Home Average Occupied Days Percentage of 97.0% and generated 8.5% rental rate growth on new leases.
Rents and other single-family property revenues increased 12.7% year-over-year to $380.9 million.
Net income attributable to common shareholders totaled $87.5 million, or $0.25 per diluted share.
Core FFO attributable to common share and unit holders increased 6.7% year-over-year to $0.40 per FFO share and unit.
Achieved Same-Home Average Occupied Days Percentage of 97.0% and 8.5% rental 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
The company's 2023 guidance anticipates continued strong demand and occupancy, with moderating rental rate growth. The acquisition programs currently remain on hold given capital market uncertainty and potentially improving future investment opportunities.
Positive Outlook
- Same-Home core revenues growth reflects expectation for a continued strong demand and occupancy environment, along with moderating rental rate growth.
- Investment program outlook contemplates continued consistent growth from the Company’s internal AMH Development Program, which is expected to deliver between 2,200 to 2,400 total program deliveries during 2023.
- Core FFO attributable to common share and unit holders growth 2.5% - 6.5%
- Same-Home Core revenues growth 5.00% - 7.00%
- Core NOI growth 3.00% - 5.00%
Challenges Ahead
- Same-Home core property operating expenses growth reflects (1) expectation for continued elevated 2023 property tax growth between 8.00% and 10.00% reflecting backwards looking historically strong home price appreciation and (2) 9.50% to 11.50% growth in all other core property operating expenses, excluding property taxes, reflecting the general inflationary environment, a historically challenging property insurance market and certain investments into our industry-leading property management platform.
- The Company’s acquisition programs currently remain on hold given capital market uncertainty and potentially improving future investment opportunities.
- 2023 property tax growth is expected to be higher during the first three quarters of 2023, normalizing on a full year basis into the Company’s expected guidance range.
- Financing costs (share count and interest) change primarily reflects full year impact of 2022 financing activities.
- General and administrative expense and amortization of IT software assets increase reflects (i) general inflationary environment and (ii) investments into certain corporate initiatives and IT systems supporting our industry-leading property management platform.