American Homes 4 Rent Q4 2023 Earnings Report
Key Takeaways
American Homes 4 Rent (AMH) reported a 7.3% increase in rents and other single-family property revenues, reaching $408.7 million for Q4 2023. Net income attributable to common shareholders was $76.6 million, or $0.21 per diluted share. Core FFO increased by 8.8% and Adjusted FFO increased by 9.3%.
Rents and other single-family property revenues increased 7.3% year-over-year to $408.7 million.
Net income attributable to common shareholders totaled $76.6 million, or $0.21 per diluted share.
Core FFO attributable to common share and unit holders increased 8.8% year-over-year to $0.43 per FFO share and unit.
Achieved Same-Home Average Occupied Days Percentage of 96.2% with 5.7% blended rate growth.
American Homes 4 Rent
American Homes 4 Rent
American Homes 4 Rent Revenue by Segment
Forward Guidance
The company expects continued resiliency in the demand, a leasing environment and consistent growth from the Company’s internal AMH Development Program.
Positive Outlook
- Average Occupied Days Percentage expectation in the low 96% area
- Average Monthly Realized Rent growth of 5.00% - 5.50% driven by 2024 leasing spreads in the high 4% area and contribution from 2023 leasing earn-in
- Bad debt expense to remain consistent with 2023 in the low 1% area as a percentage of rents
- 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 2024.
- The Company expects to fund its 2024 capital plan through a combination of Retained Cash Flow, approximately $400 - $500 million of recycled capital from dispositions, as well as equity and debt capital, including the equity capital raised on the Company’s at-the-market program in the fourth quarter of 2023 and first quarter of 2024 and $600 million green bond issuance in January 2024.
Challenges Ahead
- Same-Home core property operating expenses growth reflects (1) expectation for moderating but still elevated 2024 property tax growth between 6.25% and 8.25%
- 4.25% to 6.25% growth in all other core property operating expenses, excluding property taxes, reflecting the general inflationary environment.
- Consistent with 2023, the Company’s acquisition programs continue to remain on hold.
- The actual amounts for any and all of these items could significantly impact our 2024 GAAP net income and, as disclosed in our historical financial results, have significantly impacted GAAP net income in prior periods.
- The Company’s AMH 2014-SFR2 and AMH 2014-SFR3 securitizations, which had a total outstanding balance of $938.6 million as of December 31, 2023, are scheduled to mature in the fourth quarter of 2024.