AGOURA HILLS, Calif.,
May 4, 2017 /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
March 31, 2017.
Highlights
- Total revenues increased 19.9% to $233.8
million for the first quarter of 2017 from $195.0 million for the first quarter of
2016.
- Net loss attributable to common shareholders totaled
$1.5 million, or a $0.01 loss per basic and diluted share, for the
first quarter of 2017, compared to a net loss attributable to
common shareholders of $4.4 million,
or a $0.02 loss per basic and diluted
share, for the first quarter of 2016.
- Core Funds from Operations attributable to common share and
unit holders for the first quarter of 2017 was $76.8 million, or $0.26 per FFO share and unit, compared to
$63.6 million, or $0.23 per FFO share and unit, for the same period
in 2016, which represents a 10.0% increase on a per share and unit
basis.
- Adjusted Funds from Operations attributable to common share and
unit holders for the first quarter of 2017 was $68.8 million, or $0.23 per FFO share and unit, compared to
$55.6 million, or $0.20 per FFO share and unit, for the same period
in 2016, which represents a 12.7% increase on a per share and unit
basis.
- Increased Core Net Operating Income ("Core NOI") margin on
Same-Home properties to 65.4% for the first quarter of 2017,
compared to 63.0% for the same period in 2016.
- Core NOI after capital expenditures from Same-Home properties
increased 9.0% year over year for the quarter ended March 31,
2017.
- Maintained solid leasing performance with total and Same-Home
portfolio leasing percentages of 95.1% and 96.0%, respectively, as
of March 31, 2017.
- Achieved rental rate growth with 4.0% and 3.1% rental rate
increases on new and renewal leases, respectively, during the
quarter ended March 31, 2017.
- In March and April 2017, the
Company issued 14,842,982 Class A common shares and 6,000,000
5.875% Series F perpetual preferred shares, raising gross proceeds
of $336.5 million and $150.0 million, respectively, before offering
costs and paid off the $455.4 million
AH4R 2014-SFR1 asset-backed
securitization in full.
- In March and April 2017, the
Company received investment grade ratings of Baa3 and BBB- from
Moody's Investor Service ("Moody's") and S&P Global Ratings
("S&P"), respectively.
"We are extremely pleased with our continued success in
executing our strategic initiatives as evidenced by our first
quarter operational and financial results, generating a 9.0%
increase in Core NOI after capital expenditures from Same-Home
properties and a 10.0% increase in Core FFO per share and unit,"
stated David Singelyn, American
Homes 4 Rent's Chief Executive Officer. "During the first quarter
of 2017, we continued to unlock scale efficiencies and reduce
expenditures, producing a 12.4% decrease in average R&M and
turnover costs, net of tenant charge-backs, plus capital
expenditures for our Same-Home portfolio. Finally, we further
strengthened our balance sheet and were pleased to receive
investment grade ratings from Moody's and S&P. As we progress
through 2017 and beyond, we are well-positioned to capitalize on
internal and external expansion opportunities to drive incremental
cash flow growth and produce long-term value for our
shareholders."
First Quarter 2017 Financial Results
Total revenues increased 19.9% to $233.8
million for the first quarter of 2017 from $195.0 million for the first quarter of 2016.
Revenue growth was primarily driven by continued strong leasing
activity, as our average leased portfolio grew to 45,042 homes for
the quarter ended March 31, 2017, compared to 40,429 homes for
the quarter ended March 31, 2016.
Net loss attributable to common shareholders totaled
$1.5 million, or a $0.01 loss per basic and diluted share, for the
first quarter of 2017, compared to a net loss attributable to
common shareholders of $4.4 million,
or a $0.02 loss per basic and diluted
share, for the first quarter of 2016. This improvement was
primarily attributable to higher revenues and lower acquisition
fees and costs expensed, partially offset by increases in property
operating and depreciation expenses resulting from growth in our
property count and a gain on the conversion of Series E convertible
units into Series D convertible units in the first quarter of
2016.
Core NOI from Same-Home properties increased 7.6% to
$103.3 million for the first quarter
of 2017, compared to $96.1 million
for the first quarter of 2016. This increase was primarily due to
rental rate growth and lower core property operating expenses.
After capital expenditures, Core NOI from Same-Home properties
increased 9.0% to $98.3 million for
the first quarter of 2017, compared to $90.2
million for the first quarter of 2016. This additional
improvement was attributable to our operational enhancements, which
also resulted in lower levels of capital expenditures.
Core NOI on our total portfolio increased 24.0% to $131.7 million for the first quarter of 2017,
compared to $106.2 million for the
first quarter of 2016. This increase was primarily due to
substantial growth in rental income resulting from a larger number
of leased properties.
Core Funds from Operations attributable to common share and unit
holders ("Core FFO attributable to common share and unit holders")
was $76.8 million, or $0.26 per FFO share and unit, for the first
quarter of 2017, compared to $63.6
million, or $0.23 per FFO
share and unit, for the first quarter of 2016. Adjusted Funds from
Operations attributable to common share and unit holders ("Adjusted
FFO attributable to common share and unit holders") for the first
quarter of 2017 was $68.8 million, or
$0.23 per FFO share and unit,
compared to $55.6 million, or
$0.20 per FFO share and unit, for the
first quarter of 2016. This improvement was primarily attributable
to significant increases in rental revenue driven by overall
portfolio growth, a larger number of leased properties and higher
rental rates.
Portfolio
As of March 31, 2017, the Company had 45,285 leased
properties, an increase of 487 properties from December 31,
2016. As of March 31, 2017, the leased percentage on Same-Home
properties was 96.0%, compared to 95.7% as of December 31,
2016.
Investments
As of March 31, 2017, the Company's total portfolio
consisted of 48,336 homes, including 704 homes held for sale,
compared to 48,422 homes as of December 31, 2016, including
1,119 homes held for sale, a decrease of 86 homes, which included
420 homes acquired, 504 homes sold (including 476 former ARPI
properties) and 2 homes rescinded.
Capital Activities and Balance Sheet
In March 2017, the Company issued
14,842,982 Class A common shares of beneficial interest,
$0.01 par value per share, in an
underwritten public offering and concurrent private placement,
raising gross proceeds to the Company of $336.5 million after underwriter's discount and
before offering costs of approximately $0.6
million.
As of March 31, 2017, the Company had cash and cash
equivalents of $495.8 million and had
total outstanding debt of $3.0
billion, excluding an unamortized discount on acquired debt,
the value of exchangeable senior notes classified within equity and
unamortized deferred loan costs, with a weighted-average stated
interest rate of 3.81% and a weighted-average term to maturity of
13.1 years. The Company's $650.0
million revolving credit facility and $350.0 million term loan facility had outstanding
borrowings of zero and $350.0
million, respectively, at the end of the quarter.
In April 2017, the Company paid
off the outstanding principal on the AH4R 2014-SFR1 asset-backed securitization of approximately
$455.4 million using proceeds from
the Class A common share offering in March
2017 and available cash.
In April 2017, the Company issued
6,000,000 of 5.875% Series F cumulative redeemable perpetual
preferred shares in an underwritten public offering, raising gross
proceeds of $150.0 million before
offering costs of approximately $5.0
million, with a liquidation preference of $25.00 per share.
In March 2017, Moody's assigned a
Baa3 issuer rating to the Company and indicated that the rating
outlook is stable. In April 2017,
S&P assigned a BBB- investment grade rating to the Company
and indicated that the rating outlook is stable.
Additional Information
A copy of the Company's First Quarter 2017 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, May 5, 2017, at
11:00 a.m. Eastern Time to discuss
the Company's financial results for the quarter ended
March 31, 2017, and to provide an update on its business. The
domestic dial-in number is (877) 705-6003 (for U.S. and
Canada) and the international
dial-in number is (201) 493-6725 (passcode not required). A
simultaneous audio webcast may be accessed by using the link at
www.americanhomes4rent.com, under "For Investors." A replay of the
conference call may be accessed through Friday, May 19, 2017, by calling (844) 512-2921
(U.S. and Canada) or (412)
317-6671 (international), replay passcode number 13658809#, or by
using the link at www.americanhomes4rent.com, under "For
Investors."
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
fast becoming 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, renovating,
leasing, and operating attractive, single-family homes as rental
properties. As of March 31, 2017, we owned 48,336
single-family properties in selected submarkets in 22 states.
Forward-Looking Statements
This press release contains "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" 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 belief that we will continue to capture
the benefits of our recent maintenance initiatives and will
continue to generate strong results. 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. 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, 2016, and in the
Company's subsequent filings with the SEC.
American Homes 4
Rent
|
Condensed
Consolidated Balance Sheets
|
(Amounts in
thousands, except share data)
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Single-family
properties:
|
|
|
|
Land
|
$
|
1,523,551
|
|
|
$
|
1,512,183
|
|
Buildings and
improvements
|
6,672,252
|
|
|
6,614,953
|
|
Single-family
properties held for sale, net
|
78,922
|
|
|
87,430
|
|
|
8,274,725
|
|
|
8,214,566
|
|
Less: accumulated
depreciation
|
(732,529)
|
|
|
(666,710)
|
|
Single-family
properties, net
|
7,542,196
|
|
|
7,547,856
|
|
Cash and cash
equivalents
|
495,802
|
|
|
118,799
|
|
Restricted
cash
|
135,057
|
|
|
131,442
|
|
Rent and other
receivables, net
|
18,721
|
|
|
17,618
|
|
Escrow deposits,
prepaid expenses and other assets
|
142,745
|
|
|
133,594
|
|
Deferred costs and
other intangibles, net
|
10,139
|
|
|
11,956
|
|
Asset-backed
securitization certificates
|
25,666
|
|
|
25,666
|
|
Goodwill
|
120,279
|
|
|
120,279
|
|
Total
assets
|
$
|
8,490,605
|
|
|
$
|
8,107,210
|
|
|
|
|
|
Liabilities
|
|
|
|
Revolving credit
facility
|
$
|
—
|
|
|
$
|
—
|
|
Term loan facility,
net
|
346,909
|
|
|
321,735
|
|
Asset-backed
securitizations, net
|
2,438,616
|
|
|
2,442,863
|
|
Exchangeable senior
notes, net
|
108,988
|
|
|
108,148
|
|
Secured note
payable
|
49,583
|
|
|
49,828
|
|
Accounts payable and
accrued expenses
|
199,693
|
|
|
177,206
|
|
Participating
preferred shares derivative liability
|
75,220
|
|
|
69,810
|
|
Total
liabilities
|
3,219,009
|
|
|
3,169,590
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Equity
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A common
shares, $0.01 par value per share, 450,000,000 shares authorized,
258,255,888 and 242,740,482 shares issued and outstanding at March
31, 2017, and December 31, 2016, respectively
|
2,583
|
|
|
2,427
|
|
Class B common
shares, $0.01 par value per share, 50,000,000 shares authorized,
635,075 shares issued and outstanding at March 31, 2017, and
December 31, 2016
|
6
|
|
|
6
|
|
Preferred shares,
$0.01 par value per share, 100,000,000 shares authorized,
37,010,000 shares issued and outstanding at March 31, 2017, and
December 31, 2016
|
370
|
|
|
370
|
|
Additional paid-in
capital
|
4,919,315
|
|
|
4,568,616
|
|
Accumulated
deficit
|
(392,282)
|
|
|
(378,578)
|
|
Accumulated other
comprehensive income
|
—
|
|
|
95
|
|
Total shareholders'
equity
|
4,529,992
|
|
|
4,192,936
|
|
|
|
|
|
Noncontrolling
interest
|
741,604
|
|
|
744,684
|
|
Total
equity
|
5,271,596
|
|
|
4,937,620
|
|
|
|
|
|
Total liabilities and
equity
|
$
|
8,490,605
|
|
|
$
|
8,107,210
|
|
American Homes 4
Rent
|
Condensed
Consolidated Statements of Operations
|
(Amounts in
thousands, except share and per share data)
|
(Unaudited)
|
|
|
For the Three
Months Ended
March 31,
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
Rents from
single-family properties
|
$
|
201,107
|
|
|
$
|
167,995
|
|
Fees from
single-family properties
|
2,604
|
|
|
2,197
|
|
Tenant
charge-backs
|
28,373
|
|
|
21,016
|
|
Other
|
1,670
|
|
|
3,751
|
|
Total
revenues
|
233,754
|
|
|
194,959
|
|
|
|
|
|
Expenses:
|
|
|
|
Property operating
expenses
|
83,305
|
|
|
68,612
|
|
Property management
expenses
|
17,478
|
|
|
16,746
|
|
General and
administrative expense
|
9,295
|
|
|
8,570
|
|
Interest
expense
|
31,889
|
|
|
30,977
|
|
Acquisition fees and
costs expensed
|
1,096
|
|
|
5,653
|
|
Depreciation and
amortization
|
73,953
|
|
|
69,517
|
|
Other
|
1,558
|
|
|
1,253
|
|
Total
expenses
|
218,574
|
|
|
201,328
|
|
|
|
|
|
Gain on sale of
single-family properties and other, net
|
2,026
|
|
|
234
|
|
Gain on conversion of
Series E units
|
—
|
|
|
11,463
|
|
Remeasurement of
participating preferred shares
|
(5,410)
|
|
|
(300)
|
|
|
|
|
|
Net income
|
11,796
|
|
|
5,028
|
|
|
|
|
|
Noncontrolling
interest
|
(301)
|
|
|
3,836
|
|
Dividends on
preferred shares
|
13,587
|
|
|
5,569
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
$
|
(1,490)
|
|
|
$
|
(4,377)
|
|
|
|
|
|
Weighted-average
shares outstanding—basic and diluted
|
244,391,368
|
|
|
219,157,870
|
|
|
|
|
|
Net loss attributable
to common shareholders per share—basic and diluted
|
$
|
(0.01)
|
|
|
$
|
(0.02)
|
|
Non-GAAP Financial Measures
This press release and the First Quarter 2017 Earnings Release
and Supplemental Information Package include Funds from Operations
attributable to common share and unit holders ("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, Core NOI, Same-Home Core NOI and Same-Home Core
NOI After Capital Expenditures, which are non-GAAP financial
measures. We believe these measures are helpful in understanding
our financial performance and are widely used in the REIT industry.
Because other REITs may not compute these financial measures in the
same manner, they may not be comparable among REITs. In addition,
these metrics are not substitutes for net income / (loss) or net
cash flows from operating activities, as defined by GAAP, as
measures of our operating performance, liquidity or ability to pay
dividends. Reconciliations of these non-GAAP financial measures to
the most directly comparable GAAP measures are included in this
press release and in the First Quarter 2017 Earnings Release and
Supplemental Information Package.
Funds from Operations attributable to common
share and unit holders
The following is a reconciliation of net loss attributable to
common shareholders to FFO attributable to common share and unit
holders, Core FFO attributable to common share and unit holders and
Adjusted FFO attributable to common share and unit holders for the
three months ended March 31, 2017 and 2016 (amounts in
thousands, except share and per share data):
|
For the Three
Months Ended
March 31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Net loss attributable
to common shareholders
|
$
|
(1,490)
|
|
|
$
|
(4,377)
|
|
Adjustments:
|
|
|
|
Noncontrolling
interests in the Operating Partnership
|
(339)
|
|
|
3,912
|
|
Net (gain) on sale /
impairment of single-family properties and other
|
(1,097)
|
|
|
(60)
|
|
Depreciation and
amortization of real estate assets
|
71,404
|
|
|
68,162
|
|
FFO attributable to
common share and unit holders
|
$
|
68,478
|
|
|
$
|
67,637
|
|
Adjustments:
|
|
|
|
Acquisition fees and
costs expensed
|
1,096
|
|
|
5,653
|
|
Noncash share-based
compensation expense (1)
|
938
|
|
|
870
|
|
Noncash interest
expense related to acquired debt
|
840
|
|
|
576
|
|
Gain on conversion of
Series E units
|
—
|
|
|
(11,463)
|
|
Remeasurement of
participating preferred shares
|
5,410
|
|
|
300
|
|
Core FFO attributable
to common share and unit holders
|
$
|
76,762
|
|
|
$
|
63,573
|
|
Recurring capital
expenditures (2)
|
(6,444)
|
|
|
(6,017)
|
|
Leasing
costs
|
(1,482)
|
|
|
(1,929)
|
|
Adjusted FFO
attributable to common share and unit holders
|
$
|
68,836
|
|
|
$
|
55,627
|
|
|
|
|
|
Per FFO share and
unit:
|
|
|
|
FFO attributable to
common share and unit holders
|
$
|
0.23
|
|
|
$
|
0.25
|
|
Core FFO attributable
to common share and unit holders
|
$
|
0.26
|
|
|
$
|
0.23
|
|
Adjusted FFO
attributable to common share and unit holders
|
$
|
0.23
|
|
|
$
|
0.20
|
|
|
|
|
|
Weighted-average FFO
shares and units:
|
|
|
|
Common shares
outstanding
|
244,391,368
|
|
|
219,157,870
|
|
Share-based
compensation plan (3)
|
719,113
|
|
|
—
|
|
Operating partnership
units
|
55,555,960
|
|
|
54,740,345
|
|
Total
weighted-average FFO shares and units
|
300,666,441
|
|
|
273,898,215
|
|
|
|
(1)
|
For each of the
three-month periods ended March 31, 2017 and 2016, $0.5 million
that related to corporate administrative employees was recorded in
general and administrative expense and $0.4 million that related to
centralized and field property management employees was recorded in
property management expenses.
|
(2)
|
As a portion of our
homes are recently acquired and / or renovated, we estimate
recurring capital expenditures for our entire portfolio by
multiplying (a) current period actual capital expenditures per
Same-Home Property by (b) our total number of properties, excluding
non-stabilized and held for sale properties.
|
(3)
|
Reflects the effect
of potentially dilutive securities issuable upon the assumed
vesting / exercise of restricted stock units and stock options
using the treasury stock method.
|
FFO attributable to common share and unit holders is a non-GAAP
financial measure that we calculate in accordance with the White
Paper on FFO approved by the Board of Governors of the National
Association of Real Estate Investment Trusts ("NAREIT"), which
defines FFO as net income or loss calculated in accordance with
GAAP, excluding extraordinary items, as defined by GAAP, gains and
losses from sales or impairment of real estate, plus real
estate-related depreciation and amortization (excluding
amortization of deferred financing costs and depreciation of
non-real estate assets), and after adjustment for unconsolidated
partnerships and joint ventures.
Core FFO attributable to common share and unit holders is a
non-GAAP financial measure that we use as a supplemental measure of
our performance. We compute this metric by adjusting FFO
attributable to common share and unit holders for (1) acquisition
fees and costs expensed incurred with recent business combinations
and the acquisition of individual properties, (2) noncash
share-based compensation expense, (3) noncash interest expense
related to acquired debt, (4) gain or loss on early extinguishment
of debt, (5) noncash gain or loss on conversion of convertible
units and (6) noncash fair value adjustments associated with
remeasuring our participating preferred shares derivative liability
to fair value.
Adjusted FFO attributable to common share and unit holders is a
non-GAAP financial measure that we use as a supplemental measure of
our performance. We compute this metric by adjusting Core FFO
attributable to common share and unit holders for (1) recurring
capital expenditures that are necessary to help preserve the value
and maintain functionality of our properties and (2) actual leasing
costs incurred during the period. As a portion of our homes are
recently acquired and / or renovated, we estimate recurring capital
expenditures for our entire portfolio by multiplying (a) current
period actual capital expenditures per Same-Home Property by (b)
our total number of properties, excluding non-stabilized and held
for sale properties.
We present FFO attributable to common share and unit holders, as
well as on a per FFO share and unit basis, because we consider this
metric to be an important measure of the performance of real estate
companies, as do many analysts in evaluating the Company. We
believe that FFO attributable to common share and unit holders is a
helpful measure of a REIT's performance since this metric excludes
depreciation, which is included in computing net income and assumes
the value of real estate diminishes predictably over time. We
believe that real estate values fluctuate due to market conditions
and in response to inflation.
We also believe that Core FFO and Adjusted FFO attributable to
common share and unit holders, as well as on a per FFO share and
unit basis, are helpful to investors as supplemental measures of
the operating performance of the Company as they allow investors to
compare our operating performance to prior reporting periods
without the effect of certain items that, by nature, are not
comparable from period to period.
FFO, Core FFO and Adjusted FFO attributable to common share and
unit holders are not a substitute for net income (loss) per share
or net cash flow provided by operating activities, as determined in
accordance with GAAP, as a measure of our operating performance,
liquidity or ability to pay dividends. These metrics also are not
necessarily indicative of cash available to fund future cash needs.
Because other REITs may not compute these measures in the same
manner, they may not be comparable among REITs.
Core Net Operating Income
Core NOI, which we also present separately for our Same-Home
portfolio, is a supplemental non-GAAP financial measure that we
define as core revenues from single-family properties, which is
calculated as rents and fees from single-family properties, net of
bad debt expense, less core property operating expenses, which is
calculated as property operating and property management expenses,
excluding noncash share-based compensation expense, expenses
reimbursed by tenant charge-backs and bad debt expense. Our
Same-Home portfolio consists of our single-family properties that
have been stabilized longer than 90 days prior to the beginning of
the earliest period presented, and that have not been classified as
held for sale or taken out of service as a result of a casualty
loss.
Core NOI also excludes (1) noncash fair value adjustments
associated with remeasuring our participating preferred shares
derivative liability to fair value, (2) noncash gain or loss on
conversion of convertible units, (3) gain or loss on early
extinguishment of debt, (4) gain or loss on sales of single-family
properties and other, (5) depreciation and amortization, (6)
acquisition fees and costs expensed incurred with recent business
combinations and the acquisition of individual properties, (7)
noncash share-based compensation expense, (8) interest expense, (9)
general and administrative expense, (10) other expenses and (11)
other revenues. We consider Core NOI to be a meaningful financial
measure because we believe it is helpful to investors in
understanding the operating performance of our single-family
properties without the impact of certain operating expenses that
are reimbursed through tenant charge-backs. We further adjust Core
NOI for our Same-Home portfolio by subtracting capital expenditures
to calculate Same-Home Core NOI After Capital Expenditures, which
we believe is a meaningful supplemental non-GAAP financial measure
because it more fully reflects our operating performance after the
impact of all property-level expenditures, regardless of whether
they are capitalized or expensed.
Core NOI and Same-Home Core NOI After Capital Expenditures
should be considered only as supplements to net income or loss as a
measure of our performance and should not be used as measures of
our liquidity, nor are they indicative of funds available to fund
our cash needs, including our ability to pay dividends or make
distributions. Additionally, these metrics should not be used as
substitutes for net income (loss) or net cash flows from operating
activities (as computed in accordance with GAAP).
The following are reconciliations of core revenues, 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 months ended March 31, 2017 and
2016 (amounts in thousands):
|
For the Three
Months Ended
March 31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Core
revenues
|
|
|
|
Total
revenues
|
$
|
233,754
|
|
|
$
|
194,959
|
|
Tenant
charge-backs
|
(28,373)
|
|
|
(21,016)
|
|
Bad debt
expense
|
(1,510)
|
|
|
(1,069)
|
|
Other
revenues
|
(1,670)
|
|
|
(3,751)
|
|
Core
revenues
|
$
|
202,201
|
|
|
$
|
169,123
|
|
|
|
|
|
|
|
|
|
Core property
operating expenses
|
|
|
|
Property operating
expenses
|
$
|
83,305
|
|
|
$
|
68,612
|
|
Property management
expenses
|
17,478
|
|
|
16,746
|
|
Noncash share-based
compensation expense (1)
|
(417)
|
|
|
(357)
|
|
Expenses reimbursed
by tenant charge-backs
|
(28,373)
|
|
|
(21,016)
|
|
Bad debt
expense
|
(1,510)
|
|
|
(1,069)
|
|
Core property
operating expenses
|
$
|
70,483
|
|
|
$
|
62,916
|
|
|
|
|
|
|
|
|
|
Core NOI,
Same-Home Core NOI and Same-Home Core NOI After Capital
Expenditures
|
|
|
|
Net loss attributable
to common shareholders
|
$
|
(1,490)
|
|
|
$
|
(4,377)
|
|
Dividends on
preferred shares
|
13,587
|
|
|
5,569
|
|
Noncontrolling
interest
|
(301)
|
|
|
3,836
|
|
Net income
|
11,796
|
|
|
5,028
|
|
Remeasurement of
participating preferred shares
|
5,410
|
|
|
300
|
|
Gain on conversion of
Series E units
|
—
|
|
|
(11,463)
|
|
Gain on sale of
single-family properties and other, net
|
(2,026)
|
|
|
(234)
|
|
Depreciation and
amortization
|
73,953
|
|
|
69,517
|
|
Acquisition fees and
costs expensed
|
1,096
|
|
|
5,653
|
|
Noncash share-based
compensation expense (1)
|
417
|
|
|
357
|
|
Interest
expense
|
31,889
|
|
|
30,977
|
|
General and
administrative expense
|
9,295
|
|
|
8,570
|
|
Other
expenses
|
1,558
|
|
|
1,253
|
|
Other
revenues
|
(1,670)
|
|
|
(3,751)
|
|
Tenant
charge-backs
|
28,373
|
|
|
21,016
|
|
Expenses reimbursed
by tenant charge-backs
|
(28,373)
|
|
|
(21,016)
|
|
Bad debt expense
excluded from operating expenses
|
1,510
|
|
|
1,069
|
|
Bad debt expense
included in revenues
|
(1,510)
|
|
|
(1,069)
|
|
Core Net Operating
Income
|
131,718
|
|
|
106,207
|
|
Less: Non-Same-Home
Core Net Operating Income
|
28,381
|
|
|
10,126
|
|
Same-Home Core Net
Operating Income
|
103,337
|
|
|
96,081
|
|
Less: Same-Home
capital expenditures
|
5,063
|
|
|
5,908
|
|
Same-Home Core Net
Operating Income After Capital Expenditures
|
$
|
98,274
|
|
|
$
|
90,173
|
|
|
|
(1)
|
Represents noncash
share-based compensation expense related to centralized and field
property management employees, which is included within property
management expenses.
|
Contact:
American Homes 4 Rent
Investor Relations
Phone: (855) 794-2447
Email: investors@ah4r.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-homes-4-rent-reports-first-quarter-2017-financial-and-operating-results-300451961.html
SOURCE American Homes 4 Rent