AGOURA HILLS, Calif.,
Aug. 3, 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 June 30, 2017.
Highlights
- Total revenues increased 7.6% to $237.0
million for the second quarter of 2017 from $220.3 million for the second quarter of
2016.
- Net loss attributable to common shareholders totaled
$0.2 million, or a $0.00 loss per basic and diluted share, for the
second quarter of 2017, compared to a net loss attributable to
common shareholders of $10.4 million,
or a $0.04 loss per basic and diluted
share, for the second quarter of 2016.
- Core Funds from Operations attributable to common share and
unit holders for the second quarter of 2017 was $81.5 million, or $0.26 per FFO share and unit, compared to
$73.5 million, or $0.25 per FFO share and unit, for the same period
in 2016, which represents a 4.0% increase on a per share and unit
basis.
- Adjusted Funds from Operations attributable to common share and
unit holders for the second quarter of 2017 was $70.4 million, or $0.22 per FFO share and unit, compared to
$62.6 million, or $0.21 per FFO share and unit, for the same period
in 2016, which represents a 4.8% increase on a per share and unit
basis.
- Increased Core Net Operating Income ("Core NOI") margin on
Same-Home properties to 64.3% for the second quarter of 2017,
compared to 62.6% for the same period in 2016.
- Increased Core NOI after capital expenditures from Same-Home
properties by 7.4% year over year for the quarter ended
June 30, 2017.
- Maintained solid leasing performance with total and Same-Home
portfolio leasing percentages of 95.2% and 96.5%, respectively, as
of June 30, 2017.
- Achieved rental rate growth with 6.1% and 3.2% rental rate
increases on new and renewal leases, respectively, during the
quarter ended June 30, 2017.
- Entered into a $1.0 billion
credit agreement amendment, which lowers our cost of borrowing and
provides a more flexible borrowing structure (see terms under
"Capital Activities and Balance Sheet").
- In April and July 2017, the
Company issued 6,200,000 5.875% Series F perpetual preferred shares
and 4,600,000 5.875% Series G perpetual preferred shares, raising
gross proceeds of $155.0 million and
$115.0 million, respectively, before
offering costs.
"We are pleased with our strong operational and financial
results for the second quarter, including a 7.4% increase in Core
NOI after capital expenditures from our Same-Home properties that
demonstrates the strength of our portfolio and operational
excellence of our platform," stated David
Singelyn, American Homes 4 Rent's Chief Executive Officer.
"Our recently expanded acquisition program and new homebuilding
initiative mark the beginning of the next growth phase in the
history of American Homes 4 Rent. Coupling the strength of
our balance sheet and robust access to investment grade forms of
capital, we believe our accelerated external growth will leverage
the scalability of our best-in-class operating platform, driving
further margin expansion and creating long-term value for our
shareholders."
Second Quarter 2017 Financial Results
Total revenues increased 7.6% to $237.0
million for the second quarter of 2017 from $220.3 million for the second quarter of 2016.
Revenue growth was primarily driven by continued strong leasing
activity, as our average leased portfolio grew to 45,687 homes for
the quarter ended June 30, 2017, compared to 44,592 homes for
the quarter ended June 30, 2016.
Net loss attributable to common shareholders totaled
$0.2 million, or a $0.00 loss per basic and diluted share, for the
second quarter of 2017, compared to a net loss attributable to
common shareholders of $10.4 million,
or a $0.04 loss per basic and diluted
share, for the second quarter of 2016. This improvement was
primarily attributable to higher revenues, lower interest expense
and a reduction in depreciation and amortization expense, partially
offset by increases in property operating expenses and preferred
dividends, as well as by a loss on early extinguishment of
debt.
Core NOI from Same-Home properties increased 6.5% to
$102.7 million for the second quarter
of 2017, compared to $96.5 million
for the second 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 7.4% to $95.6 million for
the second quarter of 2017, compared to $89.0 million for the second 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 9.0% to $131.7 million for the second quarter of 2017,
compared to $120.9 million for the
second 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 $81.5 million, or $0.26 per FFO share and unit, for the second
quarter of 2017, compared to $73.5
million, or $0.25 per FFO
share and unit, for the second 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 second
quarter of 2017 was $70.4 million, or
$0.22 per FFO share and unit,
compared to $62.6 million, or
$0.21 per FFO share and unit, for the
second quarter of 2016. This improvement was primarily attributable
to significant increases in rental revenue driven by a larger
number of leased properties and higher rental rates.
Year-to-Date 2017 Financial Results
Total revenues increased 13.4% to $470.8
million for the six-month period ended June 30, 2017,
from $415.3 million for the six-month
period ended June 30, 2016. Revenue growth was primarily
driven by continued strong leasing activity, as our average leased
portfolio grew to 45,391 homes for the six-month period ended
June 30, 2017, compared to 41,862 homes for the six-month
period ended June 30, 2016.
Net loss attributable to common shareholders totaled
$1.7 million, or a $0.01 loss per basic and diluted share, for the
six-month period ended June 30, 2017, compared to a net loss
attributable to common shareholders of $14.8
million, or a $0.06 loss per
basic and diluted share, for the six-month period ended
June 30, 2016. This improvement was primarily attributable to
higher revenues and lower acquisition fees and costs expensed,
partially offset by increases in property operating expenses and
preferred dividends, as well as 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 7.0% to
$206.0 million for the six-month
period ended June 30, 2017, compared to $192.5 million for the six-month period ended
June 30, 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 8.2% to
$193.9 million for the six-month
period ended June 30, 2017, compared to $179.2 million for the six-month period ended
June 30, 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 16.0% to $263.5 million for the six-month period ended
June 30, 2017, compared to $227.1
million for the six-month period ended June 30, 2016.
This increase was primarily due to substantial growth in rental
income resulting from a larger number of leased
properties.
Core FFO attributable to common share and unit holders was
$158.2 million, or $0.51 per FFO share and unit, for the six-month
period ended June 30, 2017, compared to $137.1 million, or $0.48 per FFO share and unit, for the six-month
period ended June 30, 2016. Adjusted FFO attributable to
common share and unit holders for the six-month period ended
June 30, 2017, was $139.3
million, or $0.45 per FFO
share and unit, compared to $118.3
million, or $0.42 per FFO
share and unit, for the six-month period ended June 30, 2016.
This improvement was primarily attributable to significant
increases in rental revenue driven by a larger number of leased
properties and higher rental rates.
Portfolio
As of June 30, 2017, the Company had 46,089 leased
properties, an increase of 804 properties from March 31, 2017.
As of June 30, 2017, the leased percentage on Same-Home
properties was 96.5%, compared to 96.0% as of March 31,
2017.
Investments
As of June 30, 2017, the Company's total portfolio
consisted of 48,982 homes, including 582 homes held for sale,
compared to 48,336 homes as of March 31, 2017, including 704
homes held for sale, an increase of 646 homes, which included 773
homes acquired and 127 homes sold (including 89 former ARPI
properties).
Capital Activities and Balance Sheet
In the second quarter of 2017, the Company entered into a
$1.0 billion credit agreement
amendment, which lowers our cost of borrowing and provides a more
flexible borrowing structure. The amended terms expanded the
borrowing capacity of the revolving credit facility to $800.0 million and reduced the borrowing capacity
of the term loan facility to $200.0
million. The interest rates were amended to accrue interest
at either a LIBOR rate plus a margin ranging from 0.825% to 1.55%
or a base rate plus a margin ranging from 0.00% to 0.55% for the
revolving credit facility and at either a LIBOR rate plus a margin
ranging from 0.90% to 1.75% or a base rate plus a margin ranging
from 0.00% to 0.75% for the term loan facility. The revolving
credit facility matures on June 30,
2021, with two six-month extension options at the Company's
election, and the term loan facility matures on June 30, 2022.
In the second quarter of 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 the second quarter of 2017, the Company issued 6,200,000
5.875% Series F cumulative redeemable perpetual preferred shares in
an underwritten public offering, raising gross proceeds of
$155.0 million before offering costs
of approximately $5.2 million, with a
liquidation preference of $25.00 per
share.
In July 2017, the Company issued
4,600,000 5.875% Series G cumulative redeemable perpetual preferred
shares in an underwritten public offering, raising gross proceeds
of $115.0 million before offering
costs of approximately $4.1 million,
with a liquidation preference of $25.00 per share.
As of June 30, 2017, the Company had cash and cash
equivalents of $67.3 million and had
total outstanding debt of $2.5
billion, excluding an unamortized discount on acquired debt,
the value of exchangeable senior notes classified within equity and
unamortized deferred financing costs, with a weighted-average
stated interest rate of 4.06% and a weighted-average term to
maturity of 15.1 years. The Company's $800.0
million revolving credit facility and $200.0 million term loan facility had outstanding
borrowings of $92.0 million and
$200.0 million, respectively, at the
end of the quarter. Subsequent to quarter-end, the Company paid
down all outstanding borrowings under the revolving credit facility
using proceeds from the 5.875% Series G cumulative redeemable
perpetual preferred offering, leaving the Company's $800.0 million revolving credit facility fully
undrawn.
Additional Information
A copy of the Company's Second 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, August 4, 2017,
at 11:00 a.m. Eastern Time to discuss
the Company's financial results for the quarter ended June 30,
2017, and to provide an update on its business. The domestic
dial-in number is (877) 451-6152 (for 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 "For Investors." A replay of the
conference call may be accessed through Friday, August 18, 2017, by calling (844)
512-2921 (U.S. and Canada) or
(412) 317-6671 (international), replay passcode number 13665821#,
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 June 30, 2017, we owned 48,982 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 our acquisition and
homebuilding programs will result in continued growth and that we
will continue to expand margins. 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)
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Single-family
properties:
|
|
|
|
Land
|
$
|
1,553,214
|
|
|
$
|
1,512,183
|
|
Buildings and
improvements
|
6,815,409
|
|
|
6,614,953
|
|
Single-family
properties held for sale, net
|
65,237
|
|
|
87,430
|
|
|
8,433,860
|
|
|
8,214,566
|
|
Less: accumulated
depreciation
|
(800,076)
|
|
|
(666,710)
|
|
Single-family
properties, net
|
7,633,784
|
|
|
7,547,856
|
|
Cash and cash
equivalents
|
67,325
|
|
|
118,799
|
|
Restricted
cash
|
128,524
|
|
|
131,442
|
|
Rent and other
receivables, net
|
19,262
|
|
|
17,618
|
|
Escrow deposits,
prepaid expenses and other assets
|
137,496
|
|
|
133,594
|
|
Deferred costs and
other intangibles, net
|
13,971
|
|
|
11,956
|
|
Asset-backed
securitization certificates
|
25,666
|
|
|
25,666
|
|
Goodwill
|
120,279
|
|
|
120,279
|
|
Total
assets
|
$
|
8,146,307
|
|
|
$
|
8,107,210
|
|
|
|
|
|
Liabilities
|
|
|
|
Revolving credit
facility
|
$
|
92,000
|
|
|
$
|
—
|
|
Term loan facility,
net
|
197,648
|
|
|
321,735
|
|
Asset-backed
securitizations, net
|
1,985,847
|
|
|
2,442,863
|
|
Exchangeable senior
notes, net
|
109,862
|
|
|
108,148
|
|
Secured note
payable
|
49,346
|
|
|
49,828
|
|
Accounts payable and
accrued expenses
|
222,990
|
|
|
177,206
|
|
Participating
preferred shares derivative liability
|
76,860
|
|
|
69,810
|
|
Total
liabilities
|
2,734,553
|
|
|
3,169,590
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Equity
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A common
shares, $0.01 par value per share, 450,000,000 shares authorized,
258,490,493 and 242,740,482 shares issued and outstanding at June
30, 2017, and December 31, 2016, respectively
|
2,585
|
|
|
2,427
|
|
Class B common
shares, $0.01 par value per share, 50,000,000 shares authorized,
635,075 shares issued and outstanding at June 30, 2017, and
December 31, 2016
|
6
|
|
|
6
|
|
Preferred shares,
$0.01 par value per share, 100,000,000 shares authorized,
43,210,000 and 37,010,000 shares issued and outstanding at June 30,
2017, and December 31, 2016, respectively
|
432
|
|
|
370
|
|
Additional paid-in
capital
|
5,075,460
|
|
|
4,568,616
|
|
Accumulated
deficit
|
(405,426)
|
|
|
(378,578)
|
|
Accumulated other
comprehensive income
|
—
|
|
|
95
|
|
Total shareholders'
equity
|
4,673,057
|
|
|
4,192,936
|
|
|
|
|
|
Noncontrolling
interest
|
738,697
|
|
|
744,684
|
|
Total
equity
|
5,411,754
|
|
|
4,937,620
|
|
|
|
|
|
Total liabilities and
equity
|
$
|
8,146,307
|
|
|
$
|
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
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Rents from
single-family properties
|
$
|
204,648
|
|
|
$
|
193,491
|
|
|
$
|
405,755
|
|
|
$
|
361,486
|
|
Fees from
single-family properties
|
2,690
|
|
|
2,724
|
|
|
5,294
|
|
|
4,921
|
|
Tenant
charge-backs
|
27,382
|
|
|
20,253
|
|
|
55,755
|
|
|
41,269
|
|
Other
|
2,288
|
|
|
3,846
|
|
|
3,958
|
|
|
7,597
|
|
Total
revenues
|
237,008
|
|
|
220,314
|
|
|
470,762
|
|
|
415,273
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Property operating
expenses
|
85,954
|
|
|
77,887
|
|
|
169,259
|
|
|
146,499
|
|
Property management
expenses
|
17,442
|
|
|
18,096
|
|
|
34,920
|
|
|
34,842
|
|
General and
administrative expense
|
8,926
|
|
|
7,931
|
|
|
18,221
|
|
|
16,501
|
|
Interest
expense
|
28,392
|
|
|
35,481
|
|
|
60,281
|
|
|
66,458
|
|
Acquisition fees and
costs expensed
|
1,412
|
|
|
3,489
|
|
|
2,508
|
|
|
9,142
|
|
Depreciation and
amortization
|
72,716
|
|
|
79,604
|
|
|
146,669
|
|
|
149,121
|
|
Other
|
1,359
|
|
|
2,087
|
|
|
2,917
|
|
|
3,340
|
|
Total
expenses
|
216,201
|
|
|
224,575
|
|
|
434,775
|
|
|
425,903
|
|
|
|
|
|
|
|
|
|
Gain on sale of
single-family properties and other, net
|
2,454
|
|
|
658
|
|
|
4,480
|
|
|
892
|
|
Loss on early
extinguishment of debt
|
(6,555)
|
|
|
—
|
|
|
(6,555)
|
|
|
—
|
|
Gain on conversion of
Series E units
|
—
|
|
|
—
|
|
|
—
|
|
|
11,463
|
|
Remeasurement of
participating preferred shares
|
(1,640)
|
|
|
(150)
|
|
|
(7,050)
|
|
|
(450)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
15,066
|
|
|
(3,753)
|
|
|
26,862
|
|
|
1,275
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
(30)
|
|
|
(761)
|
|
|
(331)
|
|
|
3,075
|
|
Dividends on
preferred shares
|
15,282
|
|
|
7,412
|
|
|
28,869
|
|
|
12,981
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
$
|
(186)
|
|
|
$
|
(10,404)
|
|
|
$
|
(1,676)
|
|
|
$
|
(14,781)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding—basic and diluted
|
258,900,456
|
|
|
238,481,265
|
|
|
251,685,993
|
|
|
228,819,566
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders per share—basic and diluted
|
$
|
—
|
|
|
$
|
(0.04)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.06)
|
|
Non-GAAP Financial Measures
This press release and the Second 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 Second 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 and six months ended June 30, 2017 and 2016 (amounts in
thousands, except share and per share data):
|
For the Three
Months Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net loss attributable
to common shareholders
|
$
|
(186)
|
|
|
$
|
(10,404)
|
|
|
$
|
(1,676)
|
|
|
$
|
(14,781)
|
|
Adjustments:
|
|
|
|
|
|
|
|
Noncontrolling
interests in the Operating Partnership
|
(31)
|
|
|
(616)
|
|
|
(370)
|
|
|
3,296
|
|
Net (gain) loss on
sale / impairment of single-family properties and other
|
(896)
|
|
|
68
|
|
|
(1,993)
|
|
|
8
|
|
Depreciation and
amortization of real estate assets
|
70,968
|
|
|
78,216
|
|
|
142,372
|
|
|
146,378
|
|
FFO attributable to
common share and unit holders
|
$
|
69,855
|
|
|
$
|
67,264
|
|
|
$
|
138,333
|
|
|
$
|
134,901
|
|
Adjustments:
|
|
|
|
|
|
|
|
Acquisition fees and
costs expensed
|
1,412
|
|
|
3,489
|
|
|
2,508
|
|
|
9,142
|
|
Noncash share-based
compensation - general and administrative
|
697
|
|
|
585
|
|
|
1,218
|
|
|
1,098
|
|
Noncash share-based
compensation - property management
|
424
|
|
|
398
|
|
|
841
|
|
|
755
|
|
Noncash interest
expense related to acquired debt
|
874
|
|
|
1,649
|
|
|
1,714
|
|
|
2,225
|
|
Loss on early
extinguishment of debt
|
6,555
|
|
|
—
|
|
|
6,555
|
|
|
—
|
|
Gain on conversion of
Series E units
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,463)
|
|
Remeasurement of
participating preferred shares
|
1,640
|
|
|
150
|
|
|
7,050
|
|
|
450
|
|
Core FFO attributable
to common share and unit holders
|
$
|
81,457
|
|
|
$
|
73,535
|
|
|
$
|
158,219
|
|
|
$
|
137,108
|
|
Recurring capital
expenditures (1)
|
(9,096)
|
|
|
(8,755)
|
|
|
(15,540)
|
|
|
(14,772)
|
|
Leasing
costs
|
(1,919)
|
|
|
(2,151)
|
|
|
(3,401)
|
|
|
(4,080)
|
|
Adjusted FFO
attributable to common share and unit holders
|
$
|
70,442
|
|
|
$
|
62,629
|
|
|
$
|
139,278
|
|
|
$
|
118,256
|
|
|
|
|
|
|
|
|
|
Per FFO share and
unit:
|
|
|
|
|
|
|
|
FFO attributable to
common share and unit holders
|
$
|
0.22
|
|
|
$
|
0.23
|
|
|
$
|
0.45
|
|
|
$
|
0.48
|
|
Core FFO attributable
to common share and unit holders
|
$
|
0.26
|
|
|
$
|
0.25
|
|
|
$
|
0.51
|
|
|
$
|
0.48
|
|
Adjusted FFO
attributable to common share and unit holders
|
$
|
0.22
|
|
|
$
|
0.21
|
|
|
$
|
0.45
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
Weighted-average FFO
shares and units:
|
|
|
|
|
|
|
|
Common shares
outstanding
|
258,900,456
|
|
|
238,481,265
|
|
|
251,685,993
|
|
|
228,819,566
|
|
Share-based
compensation plan (2)
|
756,166
|
|
|
—
|
|
|
746,895
|
|
|
—
|
|
Operating partnership
units
|
55,550,593
|
|
|
55,562,904
|
|
|
55,553,262
|
|
|
55,146,394
|
|
Total
weighted-average FFO shares and units
|
315,207,215
|
|
|
294,044,169
|
|
|
307,986,150
|
|
|
283,965,960
|
|
|
|
(1)
|
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.
|
(2)
|
Reflects the effect
of potentially dilutive securities issuable upon the assumed
vesting / exercise of restricted stock units and stock
options.
|
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 and six months ended June 30, 2017
and 2016 (amounts in thousands):
|
For the Three
Months Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Core
revenues
|
|
|
|
|
|
|
|
Total
revenues
|
$
|
237,008
|
|
|
$
|
220,314
|
|
|
$
|
470,762
|
|
|
$
|
415,273
|
|
Tenant
charge-backs
|
(27,382)
|
|
|
(20,253)
|
|
|
(55,755)
|
|
|
(41,269)
|
|
Bad debt
expense
|
(1,333)
|
|
|
(1,414)
|
|
|
(2,843)
|
|
|
(2,483)
|
|
Other
revenues
|
(2,288)
|
|
|
(3,846)
|
|
|
(3,958)
|
|
|
(7,597)
|
|
Core
revenues
|
$
|
206,005
|
|
|
$
|
194,801
|
|
|
$
|
408,206
|
|
|
$
|
363,924
|
|
|
|
|
|
|
|
|
|
Core property
operating expenses
|
|
|
|
|
|
|
|
Property operating
expenses
|
$
|
85,954
|
|
|
$
|
77,887
|
|
|
$
|
169,259
|
|
|
$
|
146,499
|
|
Property management
expenses
|
17,442
|
|
|
18,096
|
|
|
34,920
|
|
|
34,842
|
|
Noncash share-based
compensation - property management
|
(424)
|
|
|
(398)
|
|
|
(841)
|
|
|
(755)
|
|
Expenses reimbursed
by tenant charge-backs
|
(27,382)
|
|
|
(20,253)
|
|
|
(55,755)
|
|
|
(41,269)
|
|
Bad debt
expense
|
(1,333)
|
|
|
(1,414)
|
|
|
(2,843)
|
|
|
(2,483)
|
|
Core property
operating expenses
|
$
|
74,257
|
|
|
$
|
73,918
|
|
|
$
|
144,740
|
|
|
$
|
136,834
|
|
|
|
|
|
|
For the Three
Months Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Core NOI,
Same-Home Core NOI and Same-Home Core NOI After Capital
Expenditures
|
Net loss attributable
to common shareholders
|
$
|
(186)
|
|
|
$
|
(10,404)
|
|
|
$
|
(1,676)
|
|
|
$
|
(14,781)
|
|
Dividends on
preferred shares
|
15,282
|
|
|
7,412
|
|
|
28,869
|
|
|
12,981
|
|
Noncontrolling
interest
|
(30)
|
|
|
(761)
|
|
|
(331)
|
|
|
3,075
|
|
Net income
(loss)
|
15,066
|
|
|
(3,753)
|
|
|
26,862
|
|
|
1,275
|
|
Remeasurement of
participating preferred shares
|
1,640
|
|
|
150
|
|
|
7,050
|
|
|
450
|
|
Gain on conversion of
Series E units
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,463)
|
|
Loss on early
extinguishment of debt
|
6,555
|
|
|
—
|
|
|
6,555
|
|
|
—
|
|
Gain on sale of
single-family properties and other, net
|
(2,454)
|
|
|
(658)
|
|
|
(4,480)
|
|
|
(892)
|
|
Depreciation and
amortization
|
72,716
|
|
|
79,604
|
|
|
146,669
|
|
|
149,121
|
|
Acquisition fees and
costs expensed
|
1,412
|
|
|
3,489
|
|
|
2,508
|
|
|
9,142
|
|
Noncash share-based
compensation - property management
|
424
|
|
|
398
|
|
|
841
|
|
|
755
|
|
Interest
expense
|
28,392
|
|
|
35,481
|
|
|
60,281
|
|
|
66,458
|
|
General and
administrative expense
|
8,926
|
|
|
7,931
|
|
|
18,221
|
|
|
16,501
|
|
Other
expenses
|
1,359
|
|
|
2,087
|
|
|
2,917
|
|
|
3,340
|
|
Other
revenues
|
(2,288)
|
|
|
(3,846)
|
|
|
(3,958)
|
|
|
(7,597)
|
|
Tenant
charge-backs
|
27,382
|
|
|
20,253
|
|
|
55,755
|
|
|
41,269
|
|
Expenses reimbursed
by tenant charge-backs
|
(27,382)
|
|
|
(20,253)
|
|
|
(55,755)
|
|
|
(41,269)
|
|
Bad debt expense
excluded from operating expenses
|
1,333
|
|
|
1,414
|
|
|
2,843
|
|
|
2,483
|
|
Bad debt expense
included in revenues
|
(1,333)
|
|
|
(1,414)
|
|
|
(2,843)
|
|
|
(2,483)
|
|
Core Net Operating
Income
|
131,748
|
|
|
120,883
|
|
|
263,466
|
|
|
227,090
|
|
Less: Non-Same-Home
Core Net Operating Income
|
29,027
|
|
|
24,405
|
|
|
57,430
|
|
|
34,582
|
|
Same-Home Core Net
Operating Income
|
102,721
|
|
|
96,478
|
|
|
206,036
|
|
|
192,508
|
|
Less: Same-Home
capital expenditures
|
7,118
|
|
|
7,465
|
|
|
12,160
|
|
|
13,345
|
|
Same-Home Core Net
Operating Income After Capital Expenditures
|
$
|
95,603
|
|
|
$
|
89,013
|
|
|
$
|
193,876
|
|
|
$
|
179,163
|
|
Contact:
American Homes 4 Rent
Investor Relations
Phone: (855) 794-2447
Email: investors@ah4r.com
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SOURCE American Homes 4 Rent