American Homes 4 Rent Reports Second Quarter 2021 Financial and Operating Results

Rhea-AI Summary

American Homes 4 Rent (NYSE: AMH) reported strong financial results for Q2 2021, with a 11.7% increase in revenues to $313.7 million and net income of $20.1 million. Core FFO rose 22.9% to $0.33 per share, while Adjusted FFO increased 26.4% to $0.29 per share. The occupancy rate stood at 97.1% with a 13.7% rate growth on new leases. The company also closed a $1.25 billion credit facility and redeemed its preferred shares, enhancing its financial stability.

Positive

• 11.7% revenue increase to $313.7 million in Q2 2021.
• Net income attributable to common shareholders rose to $20.1 million, up from $15.4 million YoY.
• Core FFO increased 22.9% to $0.33 per share.
• Adjusted FFO grew 26.4% to $0.29 per share.
• Core NOI from Same-Home properties increased 12.2% YoY.
• Achieved 97.9% Same-Home Average Occupied Days Percentage.
• Closed $1.25 billion sustainability-linked credit facility.

Negative

• Noncash charge related to redemption of preferred shares may affect future earnings.

CALABASAS, Calif., Aug. 5, 2021 /PRNewswire/ -- American Homes 4 Rent (NYSE: AMH) (the "Company"), a leading provider of high-quality single-family homes for rent, today announced its financial and operating results for the quarter ended June 30, 2021.

Highlights

• Rents and other single-family property revenues increased 11.7% to $313.7 million for the second quarter of 2021.
• Net income attributable to common shareholders totaled $20.1 million, or $0.06 per diluted share, for the second quarter of 2021, compared to $15.4 million, or $0.05 per diluted share, for the second quarter of 2020.
• Core Funds from Operations ("Core FFO") attributable to common share and unit holders increased 22.9% to $0.33 per FFO share and unit for the second quarter of 2021 and Adjusted Funds from Operations ("Adjusted FFO") attributable to common share and unit holders increased 26.4% to $0.29 per FFO share and unit for the second quarter of 2021.
• Core Net Operating Income ("Core NOI") from Same-Home properties increased by 12.2% year-over-year for the second quarter of 2021.
• Achieved new record high Same-Home Average Occupied Days Percentage of 97.9% in the second quarter of 2021, while generating 13.7% rate growth on new leases.
• Record high seasonal demand continues in the third quarter 2021, driving a 90 basis point year-over year increase in Same-Home Average Occupied Days Percentage to 97.4% in July 2021, while achieving over 16.5% rate growth on new leases.
• Closed a $1.25 billion sustainability-linked credit facility, which amends the Company's existing credit facility and provides for expanded revolving capacity and lower borrowing cost.
• Issued 5,500,000 Class A common shares raising net proceeds of $194.0 million during the second quarter of 2021 and offered 13,245,000 Class A common shares on a forward basis for future estimated net proceeds of $467.3 million.
• Redeemed all outstanding shares of the 6.500% Series D and 6.350% Series E perpetual preferred shares.
• Subsequent to quarter end, issued $450.0 million of 2.375% unsecured senior notes due 2031 and $300.0 million of 3.375% unsecured senior notes due 2051.
• Raised Full Year 2021 Core FFO attributable to common share and unit holders guidance midpoint by $0.05 per share and unit to $1.32, representing anticipated full year growth of 13.8% over prior year.

"The second quarter of 2021 was one of the strongest operational performances in the history of American Homes 4 Rent with quarterly Core FFO per share growth of nearly 23%," stated David Singelyn, American Homes 4 Rent's Chief Executive Officer.  "Additionally, we recently achieved numerous milestone capital accomplishments, including the highly successful debut issuance of 30-year unsecured bonds, which puts us in a position to further expand our 2021 external growth expectations.  Coupled with our record-breaking operating results, we are increasing the midpoint of our full-year Core FFO guidance to $1.32 per share, which now represents nearly 14% anticipated year-over-year growth."

Second Quarter 2021 Financial Results

Net income attributable to common shareholders totaled $20.1 million, or $0.06 per diluted share, for the second quarter of 2021, compared to $15.4 million, or $0.05 per diluted share, for the second quarter of 2020. This increase was primarily attributable to growth in the Company's portfolio, higher occupancy and higher rental rates, partially offset by a noncash charge related to the redemptions of our Series D and Series E perpetual preferred shares.

Rents and other single-family property revenues increased 11.7% to $313.7 million for the second quarter of 2021, compared to $280.7 million for the second quarter of 2020. Revenue growth was driven by an increase in our average occupied portfolio which grew to 52,335 homes for the second quarter of 2021, compared to 49,600 homes for the second quarter of 2020, as well as higher rental rates, higher fees and lower uncollectible rents related to the COVID-19 pandemic.

Core NOI from our total portfolio increased 18.1% to $175.3 million for the second quarter of 2021, compared to $148.4 million for the second quarter of 2020. This growth was driven by a 12.4% increase in core revenues resulting from a larger number of occupied properties and higher rental rates, partially offset by a 3.7% increase in core property operating expenses.

For the Company's Same-Home portfolio, rents from single-family properties increased 6.6% to $242.2 million for the second quarter of 2021, compared to $227.1 million for the second quarter of 2020, which was driven by a 4.1% increase in Average Monthly Realized Rent per property and a 240 basis point increase in Average Occupied Days Percentage. This growth was further benefited by (i) 90 basis points of contribution from higher fees and (ii) 80 basis points from lower uncollectible rents related to the COVID-19 pandemic, which resulted in 8.3% growth in core revenues from Same-Home properties. Core property operating expenses from Same-Home properties increased 2.2% to $87.0 million for the second quarter of 2021, compared to $85.2 million for the second quarter of 2020. As a result, Core NOI from Same-Home properties increased 12.2% to $153.7 million for the second quarter of 2021, compared to $137.0 million for the second quarter of 2020.

Core FFO attributable to common share and unit holders was $122.8 million, or $0.33 per FFO share and unit, for the second quarter of 2021, compared to $94.8 million, or $0.27 per FFO share and unit, for the second quarter of 2020. Adjusted FFO attributable to common share and unit holders was $108.7 million, or $0.29 per FFO share and unit, for the second quarter of 2021, compared to $81.6 million, or $0.23 per FFO share and unit, for the second quarter of 2020. These improvements were primarily attributable to growth in the Company's portfolio and a larger number of occupied properties as well as higher rental rates.

Year-to-Date 2021 Financial Results

Net income attributable to common shareholders totaled $50.3 million, or $0.16 per diluted share, for the six-month period ended June 30, 2021, compared to $35.6 million, or $0.12 per diluted share, for the six-month period ended June 30, 2020. This increase was primarily attributable to growth in the Company's portfolio, higher occupancy and higher rental rates, as well as an increase in gain on sale and impairment of single-family properties and other, net, partially offset by a noncash charge related to the redemptions of our Series D and Series E perpetual preferred shares.

Rents and other single-family property revenues increased 10.2% to $626.2 million for the six-month period ended June 30, 2021, compared to $568.0 million for the six-month period ended June 30, 2020. Revenue growth was driven by an increase in our average occupied portfolio which grew to 51,980 homes for the six-month period ended June 30, 2021, compared to 49,322 homes for the six-month period ended June 30, 2020, as well as higher rental rates and higher fees, partially offset by increased uncollectible rents related to the COVID-19 pandemic.

Core NOI from our total portfolio increased 13.4% to $346.4 million for the six-month period ended June 30, 2021, compared to $305.4 million for the six-month period ended June 30, 2020. This growth was driven by a 10.1% increase in core revenues resulting from a larger number of occupied properties and higher rental rates, partially offset by a 4.7% increase in core property operating expenses.

For the Company's Same-Home portfolio, rents from single-family properties increased 6.1% to $478.9 million for the six-month period ended June 30, 2021, compared to $451.3 million for the six-month period ended June 30, 2020, which was driven by a 3.7% increase in Average Monthly Realized Rent per property and a 220 basis point increase in Average Occupied Days Percentage. This growth was (i) further benefited by 60 basis points of contribution from higher fees and (ii) partially offset by 50 basis points of drag from increased uncollectible rents related to the COVID-19 pandemic, which resulted in 6.2% growth in core revenues from Same-Home properties. Core property operating expenses from Same-Home properties increased 3.0% to $170.0 million for the six-month period ended June 30, 2021, compared to $165.0 million for the six-month period ended June 30, 2020. As a result, Core NOI from Same-Home properties increased 8.0% to $306.0 million for the six-month period ended June 30, 2021, compared to $283.2 million for the six-month period ended June 30, 2020.

Core FFO attributable to common share and unit holders was $239.7 million, or $0.65 per FFO share and unit, for the six-month period ended June 30, 2021, compared to $197.9 million, or $0.56 per FFO share and unit, for the six-month period ended June 30, 2020. Adjusted FFO attributable to common share and unit holders for the six-month period ended June 30, 2021 was $215.0 million, or $0.58 per FFO share and unit, compared to $175.1 million, or $0.50 per FFO share and unit, for the six-month period ended June 30, 2020. These improvements were primarily attributable to growth in the Company's portfolio and a larger number of occupied properties as well as higher rental rates.

Collections Update

Collections have continued to remain resilient throughout the pandemic with the Company recognizing bad debt on 2.5% of its second quarter 2021 rental billings for its Same-Home portfolio. Additionally, collections of July 2021 rental billings continue to remain consistent with pandemic payment histories within the same time frame.

Portfolio

As of June 30, 2021, the Company had an occupancy percentage of 97.1%, compared to 97.5% as of March 31, 2021. The occupancy percentage on Same-Home properties was 98.2% as of June 30, 2021, compared to 98.1% as of March 31, 2021.

Investments

As of June 30, 2021, the Company's wholly-owned portfolio consisted of 54,785 homes, compared to 53,984 homes as of March 31, 2021, an increase of 801 homes during the second quarter of 2021, which included 256 newly constructed properties delivered through our AMH Development Program and 642 homes acquired through our National Builder Program and traditional acquisition channel, partially offset by 97 homes sold. As of June 30, 2021, the Company had 589 properties held for sale, compared to 636 properties as of March 31, 2021. Also, as of June 30, 2021, the Company had an additional 1,530 properties held in unconsolidated joint ventures, representing a net increase of 147 properties, compared to 1,383 properties held in unconsolidated joint ventures as of March 31, 2021.

Capital Activities, Balance Sheet and Liquidity

In April 2021, the Company closed a $1.25 billion revolving credit facility, amending its existing $800 million revolving credit facility. The amended revolving credit facility provides for expanded borrowing capacity, reflects a more favorable pricing grid based on current market conditions, and includes a sustainability component based upon third-party performance measures through which overall pricing can further improve if the Company meets certain targets. The interest rate on the amended revolving credit facility is at either LIBOR plus a margin ranging from 0.725% to 1.45% or a base rate (determined according to the greater of a prime rate, federal funds rate plus 0.5% or daily LIBOR rate plus 1.0%) plus a margin ranging from 0.00% to 0.45%. In each case the actual margin is determined based on the Company's credit ratings in effect from time to time. The amended revolving credit facility matures on April 15, 2025, with two six-month extension options at the Company's election if certain conditions are met.

In May 2021, the Company issued 5,500,000 Class A common shares of beneficial interest, $0.01 par value per share, in an underwritten public offering, raising net proceeds of $194.0 million after deducting underwriting discounts and before offering costs of approximately $0.2 million. The Company used the net proceeds from the offering to repay indebtedness under its revolving credit facility, to partially fund the redemption of its Series D and Series E perpetual preferred shares discussed below and for general corporate purposes. In connection with this offering, the Company also entered into a forward sale agreement to issue an additional 13,245,000 Class A common shares of beneficial interest, $0.01 par value per share, for future estimated net proceeds of $467.3 million after deducting underwriting discounts. The forward sale agreement expires May 2022 and the Company expects to use these net proceeds for general corporate purposes including, without limitation, property acquisitions and developments.

In June 2021, the Company redeemed all 10,750,000 shares of the outstanding 6.500% Series D perpetual preferred shares, $0.01 par value per share, and all 9,200,000 shares of the outstanding 6.350% Series E perpetual preferred shares, $0.01 par value per share, for cash at a liquidation preference of $25.00 per share plus any accrued and unpaid dividends.

As of June 30, 2021, the Company had cash and cash equivalents of $40.6 million and had total outstanding debt of $3.5 billion, excluding unamortized discounts and unamortized deferred financing costs, with a weighted-average interest rate of 3.8% and a weighted-average term to maturity of 10.4 years. The Company had $620.0 million of outstanding borrowings on its $1.25 billion revolving credit facility at the end of the quarter. Additionally, the Company has no debt maturities, other than recurring principal amortization, until 2024. During the second quarter of 2021, the Company generated $71.1 million of Retained Cash Flow and sold 97 properties generating $28.2 million of net proceeds.

In July 2021, American Homes 4 Rent, L.P. (the "Operating Partnership"), the entity through which the Company conducts substantially all of its business and owns, directly or through subsidiaries, substantially all of its assets, issued $450.0 million of 2.375% unsecured senior notes with a maturity date of July 15, 2031 and $300.0 million of 3.375% unsecured senior notes with a maturity date of July 15, 2051. Interest on the notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2022. The Operating Partnership received aggregate net proceeds of $731.6 million from these issuances, after underwriting fees of approximately $5.6 million and a $12.8 million discount, and before estimated offering costs of $1.1 million. The Operating Partnership used the net proceeds from this offering to repay amounts outstanding on its revolving credit facility and intends to use any remaining net proceeds for general corporate purposes, including, without limitation, property acquisitions and developments, the expansion, redevelopment and/or improvement of existing properties in the Operating Partnership's portfolio, other capital expenditures, the redemption of its preferred shares, the repayment of outstanding indebtedness, working capital and other general purposes.

2021 Guidance

The Company is providing revised 2021 guidance based on its current and expected views of the single-family rental market and general economic conditions. However, the extent to which the pandemic may continue to impact us and our residents will continue to depend on future developments. These include resurgences, new variants or strains, such as the Delta variant, the impact of government regulations, vaccine adoption rates, the effectiveness of vaccines, and the direct and indirect economic effects of the pandemic and containment measures, among others. We will continue to monitor these events which may result in future revisions to our guidance estimates.

Guidance Summary

	Full Year 2021
	Previous Guidance		Current Guidance
Core FFO attributable to common share and unit holders	$1.24 - $1.30		$1.29 - $1.35
Core FFO attributable to common share and unit holders growth	6.9% - 12.1%		11.2% - 16.4%
Same-Home
Core revenues growth	3.75% - 4.75%		5.00% - 6.00%
Core property operating expenses growth	4.00% - 5.50%		4.00% - 5.50%
Core NOI growth	3.25% - 4.75%		5.25% - 6.75%

Changes to Full Year 2021 guidance:

• $0.03 related to our Same-Home portfolio reflecting strengthened core revenues outlook primarily driven by strong occupancy and leasing results.
• $0.02 related to our Non-Same-Home portfolio reflecting strengthened core revenues outlook primarily driven by strong occupancy and leasing results as well as partial year impact from our expanded external growth program, net of financing costs. Since our first quarter update on May 6, 2021, we have increased our external growth expectations by approximately $300 million to $1.4 billion to $1.6 billion, which now includes between 3,500 and 4,000 wholly-owned inventory additions as well as 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 $1.6 billion to $1.8 billion for the year.

Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income or loss, total revenues and property operating expenses, or a reconciliation of the above-listed forward-looking non-GAAP financial measures to the comparable GAAP financial measures because we are unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, net gain or loss on sales and impairment of single-family properties, casualty loss, Non-Same-Home revenues and Non-Same-Home property operating expenses. These items are uncertain, depend on various factors and could have a material impact on our GAAP results for the guidance period.

Additional Information

A copy of the Company's Second Quarter 2021 Earnings Release and Supplemental Information Package and this press release are available on our website at www.americanhomes4rent.com. This information has also been furnished to the SEC in a current report on Form 8-K.

Conference Call

A conference call is scheduled on Friday, August 6, 2021 at 11:00 a.m. Eastern Time to discuss the Company's financial results for the quarter ended June 30, 2021 and to provide an update on its business. The domestic dial-in number is (877) 451-6152 (U.S. and Canada) and the international dial-in number is (201) 389-0879 (passcode not required). A simultaneous audio webcast may be accessed by using the link at www.americanhomes4rent.com, under "Investor relations." A replay of the conference call may be accessed through Friday, August 20, 2021 by calling (844) 512-2921 (U.S. and Canada) or (412) 317-6671 (international), replay passcode number 13721357#, or by using the link at www.americanhomes4rent.com, under "Investor relations."

About American Homes 4 Rent

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and "American Homes 4 Rent" is a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction. We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties. As of June 30, 2021, we owned 54,785 single-family properties in selected submarkets in 22 states.

Forward-Looking Statements

This press release and the accompanying Supplemental Information Package contain "forward-looking statements." These forward-looking statements relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "intend," "potential," "plan," "goal," "outlook," "guidance" or other words that convey the uncertainty of future events or outcomes. Examples of forward-looking statements contained in this press release include, among others, our 2021 Guidance, our expectations with respect to the impacts of the COVID-19 pandemic, our belief that our acquisition and homebuilding programs will result in continued growth and the estimated timing of our development deliveries set forth in the Supplemental Information Package. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company's management considers these expectations to be reasonable, they are inherently subject to risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statements to conform to actual results or changes in its expectations, unless required by applicable law. Currently, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the adverse effect of the COVID-19 pandemic. The extent to which COVID-19 will impact our future financial results will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, including resurgences, new variants or strains, such as the Delta variant, the impact of government regulations, vaccine adoption rates, the effectiveness of vaccines, and the direct and indirect economic effects of the pandemic and containment measures, among others. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see the "Risk Factors" disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, and in the Company's subsequent filings with the SEC.

American Homes 4 Rent Condensed Consolidated Balance Sheets (Amounts in thousands, except share data)
	June 30, 2021				December 31, 2020
	(Unaudited)
Assets
Single-family properties:
Land	$	1,911,697			$	1,836,798
Buildings and improvements	8,548,603				8,163,023
Single-family properties in operation	10,460,300				9,999,821
Less: accumulated depreciation	(1,913,648)				(1,754,433)
Single-family properties in operation, net	8,546,652				8,245,388
Single-family properties under development and development land	647,979				510,365
Single-family properties held for sale, net	107,363				129,026
Total real estate assets, net	9,301,994				8,884,779
Cash and cash equivalents	40,585				137,060
Restricted cash	142,951				128,017
Rent and other receivables	50,916				41,544
Escrow deposits, prepaid expenses and other assets	182,701				163,171
Investments in unconsolidated joint ventures	103,634				93,109
Asset-backed securitization certificates	25,666				25,666
Goodwill	120,279				120,279
Total assets	$	9,968,726			$	9,593,625
Liabilities
Revolving credit facility	$	620,000			$	—
Asset-backed securitizations, net	1,917,833				1,927,607
Unsecured senior notes, net	890,481				889,805
Accounts payable and accrued expenses	366,907				298,949
Amounts payable to affiliates	—				4,834
Total liabilities	3,795,221				3,121,195
Commitments and contingencies
Equity
Shareholders' equity:
Class A common shares ($0.01 par value per share, 450,000,000 shares authorized, 322,208,183 and 316,021,385 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)	3,222				3,160
Class B common shares ($0.01 par value per share, 50,000,000 shares authorized, 635,075 shares issued and outstanding at June 30, 2021 and December 31, 2020)	6				6
Preferred shares ($0.01 par value per share, 100,000,000 shares authorized, 15,400,000 and 35,350,000 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)	154				354
Additional paid-in capital	5,949,615				6,223,256
Accumulated deficit	(457,404)				(443,522)
Accumulated other comprehensive income	1,991				5,840
Total shareholders' equity	5,497,584				5,789,094
Noncontrolling interest	675,921				683,336
Total equity	6,173,505				6,472,430
Total liabilities and equity	$	9,968,726			$	9,593,625

 

American Homes 4 Rent Condensed Consolidated Statements of Operations (Amounts in thousands, except share and per share data) (Unaudited)
	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2021				2020				2021				2020
Rents and other single-family property revenues	$	313,654			$	280,689			$	626,227			$	568,031
Expenses:
Property operating expenses	116,578				110,436				235,272				217,933
Property management expenses	22,416				22,260				46,115				45,536
General and administrative expense	12,793				11,493				27,998				22,759
Interest expense	27,528				29,558				55,533				59,273
Acquisition and other transaction costs	2,968				1,956				7,814				4,103
Depreciation and amortization	91,117				84,836				181,188				167,657
Total expenses	273,400				260,539				553,920				517,261
Gain on sale and impairment of single-family properties and other, net	10,760				9,997				26,829				16,316
Other income and expense, net	800				1,660				1,599				2,248
Net income	51,814				31,807				100,735				69,334
Noncontrolling interest	3,218				2,656				8,143				6,157
Dividends on preferred shares	12,615				13,782				26,397				27,564
Redemption of perpetual preferred shares	15,879				—				15,879				—
Net income attributable to common shareholders	$	20,102			$	15,369			$	50,316			$	35,613
Weighted-average common shares outstanding:
Basic	319,752,730				301,011,545				318,380,175				300,912,307
Diluted	320,808,996				301,412,243				319,408,153				301,358,769
Net income attributable to common shareholders per share:
Basic	$	0.06			$	0.05			$	0.16			$	0.12
Diluted	$	0.06			$	0.05			$	0.16			$	0.12

 

Funds from Operations attributable to common share and unit holders and Retained Cash Flow

The following is a reconciliation of net income or loss attributable to common shareholders to FFO attributable to common share and unit holders, Core FFO attributable to common share and unit holders, Adjusted FFO attributable to common share and unit holders and Retained Cash Flow for the three and six months ended June 30, 2021 and 2020 (amounts in thousands, except share and per share data):

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2021				2020				2021				2020
	(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Net income attributable to common shareholders	$	20,102			$	15,369			$	50,316			$	35,613
Adjustments:
Noncontrolling interests in the Operating Partnership	3,218				2,656				8,143				6,157
Gain on sale and impairment of single-family properties and other, net	(10,760)				(9,997)				(26,829)				(16,316)
Adjustments for unconsolidated joint ventures	449				388				831				626
Depreciation and amortization	91,117				84,836				181,188				167,657
Less: depreciation and amortization of non-real estate assets	(2,605)				(2,192)				(5,393)				(4,256)
FFO attributable to common share and unit holders	$	101,521			$	91,060			$	208,256			$	189,481
Adjustments:
Acquisition, other transaction costs and other	2,968				1,660				7,814				4,512
Noncash share-based compensation - general and administrative	1,823				1,649				6,165				3,018
Noncash share-based compensation - property management	599				441				1,598				880
Redemption of perpetual preferred shares	15,879				—				15,879				—
Core FFO attributable to common share and unit holders	$	122,790			$	94,810			$	239,712			$	197,891
Recurring Capital Expenditures	(13,217)				(12,184)				(22,868)				(20,895)
Leasing costs	(905)				(992)				(1,880)				(1,902)
Adjusted FFO attributable to common share and unit holders	$	108,668			$	81,634			$	214,964			$	175,094
Common distributions	(37,541)				(17,699)				(74,508)				(35,389)
Retained Cash Flow	$	71,127			$	63,935			$	140,456			$	139,705
Per FFO share and unit:
FFO attributable to common share and unit holders	$	0.27			$	0.26			$	0.56			$	0.54
Core FFO attributable to common share and unit holders	$	0.33			$	0.27			$	0.65			$	0.56
Adjusted FFO attributable to common share and unit holders	$	0.29			$	0.23			$	0.58			$	0.50
Weighted-average FFO shares and units:
Common shares outstanding	319,752,730				301,011,545				318,380,175				300,912,307
Share-based compensation plan and forward sale equity contracts (1)	1,328,529				491,605				1,348,541				648,441
Operating partnership units	51,376,980				52,026,980				51,520,074				52,026,980
Total weighted-average FFO shares and units	372,458,239				353,530,130				371,248,790				353,587,728

(1)	Reflects the effect of potentially dilutive securities issuable upon the assumed vesting/exercise of restricted stock units and stock options and the dilutive effect of unsettled forward sale equity contracts under the treasury stock method.

The following are reconciliations of core revenues, Same-Home core revenues, core property operating expenses, Same-Home core property operating expenses, Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures to their respective GAAP metrics for the three and six months ended June 30, 2021 and 2020 (amounts in thousands):

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2021				2020				2021				2020
	(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Core revenues and Same-Home core revenues
Rents and other single-family property revenues	$	313,654			$	280,689			$	626,227			$	568,031
Tenant charge-backs	(38,014)				(35,429)				(83,809)				(75,442)
Core revenues	275,640				245,260				542,418				492,589
Less: Non-Same-Home core revenues	34,963				23,118				66,463				44,371
Same-Home core revenues	$	240,677			$	222,142			$	475,955			$	448,218
Core property operating expenses and Same-Home core property operating expenses
Property operating expenses	$	116,578			$	110,436			$	235,272			$	217,933
Property management expenses	22,416				22,260				46,115				45,536
Noncash share-based compensation - property management	(599)				(441)				(1,598)				(880)
Expenses reimbursed by tenant charge-backs	(38,014)				(35,429)				(83,809)				(75,442)
Core property operating expenses	100,381				96,826				195,980				187,147
Less: Non-Same-Home core property operating expenses	13,370				11,672				25,995				22,166
Same-Home core property operating expenses	$	87,011			$	85,154			$	169,985			$	164,981
Core NOI, Same-Home Core NOI and Same-Home Core NOI After Capital Expenditures
Net income	$	51,814			$	31,807			$	100,735			$	69,334
Gain on sale and impairment of single-family properties and other, net	(10,760)				(9,997)				(26,829)				(16,316)
Depreciation and amortization	91,117				84,836				181,188				167,657
Acquisition and other transaction costs	2,968				1,956				7,814				4,103
Noncash share-based compensation - property management	599				441				1,598				880
Interest expense	27,528				29,558				55,533				59,273
General and administrative expense	12,793				11,493				27,998				22,759
Other income and expense, net	(800)				(1,660)				(1,599)				(2,248)
Core NOI	175,259				148,434				346,438				305,442
Less: Non-Same-Home Core NOI	21,593				11,446				40,468				22,205
Same-Home Core NOI	153,666				136,988				305,970				283,237
Less: Same-Home Recurring Capital Expenditures	11,727				11,219				20,328				19,546
Same-Home Core NOI After Capital Expenditures	$	141,939			$	125,769			$	285,642			$	263,691

 

Contact:
American Homes 4 Rent
Investor Relations
Phone: (855) 794-2447
Email: investors@ah4r.com

 

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SOURCE American Homes 4 Rent

FAQ

What were American Homes 4 Rent's Q2 2021 financial results?

American Homes 4 Rent reported revenues of $313.7 million and net income of $20.1 million for Q2 2021.

How did Core FFO perform for AMH in Q2 2021?

Core FFO increased 22.9% to $0.33 per share in Q2 2021.

What was the occupancy rate for AMH in June 2021?

The occupancy rate stood at 97.1% as of June 30, 2021.

What is the significance of the $1.25 billion credit facility for AMH?

The credit facility enhances AMH’s financial stability and provides lower borrowing costs.

What does the redemption of preferred shares indicate for AMH's financial strategy?

Redemption of preferred shares can improve earnings per share but may involve noncash charges.