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Dec 31, 2023
American Homes 4 Rent Q4 2023 Earnings Report
American Homes 4 Rent reported strong Q4 2023 results, driven by higher rental rates and strategic initiatives.
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.
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%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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