American Homes 4 Rent Q1 FY2025 earnings call

• Strong start to 2025 with top-line metrics accelerating each month since the start of the year, driving $0.46 of core FFO per share, up 6.6% YOY. - Housing fundamentals remain strong with supply-demand imbalance, and AMH recognized as 37th largest home builder. - Same-home average occupied days strengthened to 95.9%, with new, renewal, and blended rental rate spreads of 1.4%, 4.5%, and 3.6% respectively, driving same-home core revenue growth of 4.3%. - Development deliveries landed as expected with initial yields in the low 5% area, expected to increase to mid-5% range for 2025. - Balance sheet: net debt to adjusted EBITDA was 5.3 times, $70 million cash available, $410 million drawn on revolving credit facility, and S&P Global revised AMH's credit rating to Positive Outlook.

The company had a strong first quarter with a net income attributable to common shareholders of $110 million or $0.30 per diluted share. Core FFO per share was $0.46, representing 6.6% year-over-year growth. In the development program, 545 homes were delivered to wholly owned and joint venture portfolios, with 424 homes in the wholly owned portfolio at a total investment cost of approximately $173 million. The disposition program sold 416 properties, generating approximately $135 million of net proceeds at an average economic disposition yield in the 3%. Revenue contributions: core FFO was $0.46 per share, adjusted FFO was $0.42 per share.

• 2025 guidance remains unchanged with a strong start to the year. - Full-year same-store revenue growth is expected at the midpoint of 3.5%. - Same-home occupancy is expected to be in the low 96% range full year. - Average realized rent growth is expected in the high 3s, with bad debt expected in the low 1% range full year. - Bulk of the spring leasing season is still ahead, and the company remains mindful of economic uncertainty.

• Potential impact of tariffs on development costs and deliveries. - Economic uncertainty affecting demand and market conditions. - Regulatory risks such as rent control proposals that could impact the business and affordability.

Q: Dig into the strength in Midwest markets and appetite to grow land bank.

A: Chris Lau mentions Midwest markets are strong due to quality of life and affordability, and Bryan Smith talks about active expansion plans in markets like Columbus and Indianapolis.

Q: Build-to-rent portfolio demographics.

A: Bryan Smith states there's consistency in demographics between built-to-rent and scattered site homes, with similar age, household makeup, and income ratios.

Q: Impact of labor market weakening on business.

A: Bryan Smith says housing is a fundamental need, and the strength of the labor market hasn't had immediate impact on demand trends, with affordability of owning a home being a bigger factor.

Q: Bad debt trends.

A: Chris Lau notes first quarter bad debt was 1%, with collections feeling good and a slight increase from last year but expecting it to stay in the low 1% range full year.