CALABASAS, Calif., May 6, 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 March 31, 2021.
Highlights
- Rents and other single-family property revenues increased 8.8%
to $312.6 million for the first
quarter of 2021 from $287.3 million
for the first quarter of 2020.
- Net income attributable to common shareholders totaled
$30.2 million, or $0.09 per diluted share, for the first quarter of
2021, compared to $20.2 million, or
$0.07 per diluted share, for the
first quarter of 2020.
- Core Funds from Operations ("Core FFO") attributable to common
share and unit holders increased 8.5% to $0.32 per FFO share and unit for the first
quarter of 2021 from $0.29 per FFO
share and unit for the first quarter of 2020 and Adjusted Funds
from Operations ("Adjusted FFO") attributable to common share and
unit holders increased 8.9% to $0.29
per FFO share and unit for the first quarter of 2021 from
$0.26 per FFO share and unit for the
first quarter of 2020.
- Core Net Operating Income ("Core NOI") from Same-Home
properties increased by 4.0% year-over-year for the first quarter
of 2021.
- Continued to experience record demand with a Same-Home
portfolio Average Occupied Days Percentage of 97.3% in the first
quarter of 2021, while achieving 10.0% rental rate growth on new
leases, which accelerated further in April to an Average Occupied
Days Percentage in the high 97% range while achieving over 11%
rental rate growth on new leases.
- Subsequent to quarter end, 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.
- Subsequent to quarter end, announced the Company's intent to
redeem all outstanding shares of the 6.500% Series D and 6.350%
Series E perpetual preferred shares.
- Raised Full Year 2021 Core FFO attributable to common share and
unit holders guidance midpoint by $0.02 per share and unit to $1.27, representing anticipated full year growth
of 9.5% over prior year.
"We are off to a strong start this year with quarterly Core FFO
growth of 8.5%, which reflects our high-growth trajectory and
record leasing results that continued strengthening into April,"
stated David Singelyn, American
Homes 4 Rent's Chief Executive Officer. "In an undersupplied
market, we are providing access to high-quality, Class A homes and
leveraging the benefits of our one-of-a-kind development program to
help meet our country's housing needs. Thanks to our team's
hard work and based on our ability to capitalize on the strong
operating environment, coupled with our recently announced plan to
accretively redeem our series D and E preferred shares, we are
increasing the midpoint of our full year Core FFO guidance to
$1.27 per share, which now represents
9.5% anticipated year-over-year growth."
First Quarter 2021 Financial Results
Net income attributable to common shareholders totaled
$30.2 million, or $0.09 per diluted share, for the first quarter of
2021, compared to $20.2 million, or
$0.07 per diluted share, for the
first quarter of 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
increased uncollectible rents related to the COVID-19 pandemic.
Rents and other single-family property revenues increased 8.8%
to $312.6 million for the first
quarter of 2021, compared to $287.3
million for the first quarter of 2020. Revenue growth was
driven by an increase in our average occupied portfolio which grew
to 51,648 homes for the first quarter of 2021, compared to 48,898
homes for the first quarter of 2020, as well as higher rental
rates, partially offset by increased uncollectible rents related to
the COVID-19 pandemic.
Core NOI from our total portfolio increased 9.0% to $171.2 million for the first quarter of 2021,
compared to $157.0 million for the
first quarter of 2020. This growth was driven by a 7.9% increase in
core revenues resulting from a larger number of occupied properties
and higher rental rates, partially offset by an increase in
uncollectible rents related to the COVID-19 pandemic and a 5.8%
increase in core property operating expenses.
For the Company's Same-Home portfolio, rents from single-family
properties increased 5.6% to $237.6
million for the first quarter of 2021, compared to
$225.0 million for the first
quarter of 2020, which was driven by a 3.3% increase in Average
Monthly Realized Rent per property and a 210 basis point increase
in Average Occupied Days Percentage. This growth was (i) further
benefited by 30 basis points of contribution from higher fees and
(ii) partially offset by 190 basis points of drag from increased
uncollectible rents related to the COVID-19 pandemic, which
resulted in 4.0% growth in core revenues from Same-Home properties.
Core property operating expenses from Same-Home properties
increased 4.0% to $83.3 million for
the first quarter of 2021, compared to $80.1
million for the first quarter of 2020. As a result, Core NOI
from Same-Home properties increased 4.0% to $152.7 million for the first quarter of 2021,
compared to $146.8 million for the
first quarter of 2020.
Core FFO attributable to common share and unit holders was
$116.9 million, or $0.32 per FFO share and unit, for the first
quarter of 2021, compared to $103.1
million, or $0.29 per FFO
share and unit, for the first quarter of 2020. Adjusted FFO
attributable to common share and unit holders was $106.3 million, or $0.29 per FFO share and unit, for the first
quarter of 2021, compared to $93.5
million, or $0.26 per FFO
share and unit, for the first 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, partially offset by $4.9 million of negative financial impacts
associated with the COVID-19 pandemic including $4.5 million of increased uncollectible
rents and $0.4 million of
increased uncollectible tenant reimbursements.
Collections Update
Collections have continued to remain resilient throughout the
pandemic with the Company recognizing bad debt on 2.5% of its first
quarter 2021 rental billings. Additionally, collections of
April 2021 rental billings continue
to remain consistent with pandemic payment histories within the
same time frame.
Portfolio
As of March 31, 2021, the Company
had an occupancy percentage of 97.5%, compared to 97.0% as of
December 31, 2020. The occupancy
percentage on Same-Home properties was 98.1% as of March 31, 2021, compared to 97.6% as of
December 31, 2020.
Investments
As of March 31, 2021, the
Company's wholly-owned portfolio consisted of 53,984 homes,
compared to 53,584 homes as of December 31,
2020, an increase of 400 homes during the first quarter of
2021, which included 299 newly constructed properties delivered
through our AMH Development Program and 281 homes acquired through
our National Builder Program and traditional acquisition channel,
partially offset by 180 homes sold. As of March 31, 2021, the Company had 636 properties
held for sale, compared to 711 properties as of December 31, 2020. Also, as of March 31, 2021, the Company had an additional
1,383 properties held in unconsolidated joint ventures,
representing a net increase of 90 properties, compared to 1,293
properties held in unconsolidated joint ventures as of December 31, 2020.
Capital Activities, Balance Sheet and Liquidity
As of March 31, 2021, the Company
had cash and cash equivalents of $75.2
million and had total outstanding debt of $2.9 billion, excluding unamortized discounts and
unamortized deferred financing costs, with a weighted-average
interest rate of 4.3% and a weighted-average term to maturity of
11.6 years. The Company had $80.0
million of outstanding borrowings on its $800.0 million revolving credit facility at the
end of the quarter. Additionally, the Company has no debt
maturities, other than recurring principal amortization and its
revolving credit facility which was amended subsequent to quarter
end, until 2024. During the first quarter of 2021, the Company
generated $69.3 million of Retained
Cash Flow and sold 180 properties generating $46.2 million of net proceeds.
On April 15, 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 to continue to support the Company's
growth initiatives, 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.
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, impact of government regulations, the speed
and effectiveness of vaccine distribution, vaccine adoption rates
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
|
$1.22 -
$1.28
|
|
$1.24 -
$1.30
|
Core FFO attributable
to common share and unit holders growth
|
5.2% -
10.3%
|
|
6.9% -
12.1%
|
|
|
|
|
Same-Home
|
|
|
|
Core revenues
growth
|
3.25% -
4.75%
|
|
3.75% -
4.75%
|
Core property operating
expenses growth
|
4.00% -
5.50%
|
|
4.00% -
5.50%
|
Core NOI
growth
|
2.75% -
4.25%
|
|
3.25% -
4.75%
|
Changes to Full Year 2021 guidance:
- $0.01 reflecting strengthened
operational outlook primarily in core revenues driven by strong
occupancy and leasing results in both our Same-Home and
Non-Same-Home portfolios.
- $0.01 reflecting partial year
benefit from the anticipated refinancing of the 6.500% Series D and
6.350% Series E preferred shares.
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 First 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,
May 7, 2021 at 11:00 a.m. Eastern
Time to discuss the Company's financial results for the
quarter ended March 31, 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, May 21, 2021 by calling (844)
512-2921 (U.S. and Canada) or
(412) 317-6671 (international), replay passcode number 13718331#,
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
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, developing,
renovating, leasing, and operating attractive, single-family homes
as rental properties. As of March 31,
2021, we owned 53,984 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 on the financial condition, operating results and
cash flows of the Company, our tenants, the real estate market, the
global economy and the financial markets. The extent to which the
COVID-19 pandemic continues to impact us and our tenants 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, impact of government regulations, the speed and
effectiveness of vaccine distribution, vaccine adoption rates 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 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,
2021
|
|
December 31,
2020
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Single-family
properties:
|
|
|
|
Land
|
$
|
1,860,879
|
|
|
$
|
1,836,798
|
|
Buildings and
improvements
|
8,301,797
|
|
|
8,163,023
|
|
Single-family
properties in operation
|
10,162,676
|
|
|
9,999,821
|
|
Less: accumulated
depreciation
|
(1,832,510)
|
|
|
(1,754,433)
|
|
Single-family
properties in operation, net
|
8,330,166
|
|
|
8,245,388
|
|
Single-family
properties under development and development land
|
554,765
|
|
|
510,365
|
|
Single-family
properties held for sale, net
|
115,994
|
|
|
129,026
|
|
Total real estate
assets, net
|
9,000,925
|
|
|
8,884,779
|
|
Cash and cash
equivalents
|
75,237
|
|
|
137,060
|
|
Restricted
cash
|
136,867
|
|
|
128,017
|
|
Rent and other
receivables
|
49,714
|
|
|
41,544
|
|
Escrow deposits,
prepaid expenses and other assets
|
177,936
|
|
|
163,171
|
|
Investments in
unconsolidated joint ventures
|
100,077
|
|
|
93,109
|
|
Asset-backed
securitization certificates
|
25,666
|
|
|
25,666
|
|
Goodwill
|
120,279
|
|
|
120,279
|
|
Total
assets
|
$
|
9,686,701
|
|
|
$
|
9,593,625
|
|
|
|
|
|
Liabilities
|
|
|
|
Revolving credit
facility
|
$
|
80,000
|
|
|
$
|
—
|
|
Asset-backed
securitizations, net
|
1,922,734
|
|
|
1,927,607
|
|
Unsecured senior
notes, net
|
890,143
|
|
|
889,805
|
|
Accounts payable and
accrued expenses
|
307,644
|
|
|
298,949
|
|
Amounts payable to
affiliates
|
—
|
|
|
4,834
|
|
Total
liabilities
|
3,200,521
|
|
|
3,121,195
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Equity
|
|
|
|
Shareholders'
equity:
|
|
|
|
Class A common shares
($0.01 par value per share, 450,000,000 shares authorized,
316,617,810 and 316,021,385 shares issued and outstanding at March
31, 2021 and December 31, 2020, respectively)
|
3,166
|
|
|
3,160
|
|
Class B common shares
($0.01 par value per share, 50,000,000 shares authorized, 635,075
shares issued and outstanding at March 31, 2021 and
December 31, 2020)
|
6
|
|
|
6
|
|
Preferred shares
($0.01 par value per share, 100,000,000 shares authorized,
35,350,000 shares issued and outstanding at March 31, 2021 and
December 31, 2020)
|
354
|
|
|
354
|
|
Additional paid-in
capital
|
6,234,456
|
|
|
6,223,256
|
|
Accumulated
deficit
|
(445,103)
|
|
|
(443,522)
|
|
Accumulated other
comprehensive income
|
13,576
|
|
|
5,840
|
|
Total shareholders'
equity
|
5,806,455
|
|
|
5,789,094
|
|
Noncontrolling
interest
|
679,725
|
|
|
683,336
|
|
Total
equity
|
6,486,180
|
|
|
6,472,430
|
|
|
|
|
|
Total liabilities and
equity
|
$
|
9,686,701
|
|
|
$
|
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
March 31,
|
|
2021
|
|
2020
|
Rents and other
single-family property revenues
|
$
|
312,573
|
|
|
$
|
287,342
|
|
|
|
|
|
Expenses:
|
|
|
|
Property operating
expenses
|
118,694
|
|
|
107,497
|
|
Property management
expenses
|
23,699
|
|
|
23,276
|
|
General and
administrative expense
|
15,205
|
|
|
11,266
|
|
Interest
expense
|
28,005
|
|
|
29,715
|
|
Acquisition and other
transaction costs
|
4,846
|
|
|
2,147
|
|
Depreciation and
amortization
|
90,071
|
|
|
82,821
|
|
Total
expenses
|
280,520
|
|
|
256,722
|
|
|
|
|
|
Gain on sale and
impairment of single-family properties and other, net
|
16,069
|
|
|
6,319
|
|
Other income and
expense, net
|
799
|
|
|
588
|
|
|
|
|
|
Net income
|
48,921
|
|
|
37,527
|
|
|
|
|
|
Noncontrolling
interest
|
4,925
|
|
|
3,501
|
|
Dividends on
preferred shares
|
13,782
|
|
|
13,782
|
|
|
|
|
|
Net income
attributable to common shareholders
|
$
|
30,214
|
|
|
$
|
20,244
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
Basic
|
316,982,460
|
|
|
300,813,069
|
|
Diluted
|
317,441,397
|
|
|
301,305,068
|
|
|
|
|
|
Net income
attributable to common shareholders per share:
|
|
|
|
Basic
|
$
|
0.10
|
|
|
$
|
0.07
|
|
Diluted
|
$
|
0.09
|
|
|
$
|
0.07
|
|
Defined Terms
Average Monthly Realized Rent
For the related period,
Average Monthly Realized Rent is calculated as the lease component
of rents and other single-family property revenues (i.e., rents
from single-family properties) divided by the product of (a) number
of properties and (b) Average Occupied Days Percentage, divided by
the number of months. For properties partially owned during the
period, this calculation is adjusted to reflect the number of days
of ownership.
Average Occupied Days Percentage
The number of days a
property is occupied in the period divided by the total number of
days the property is owned during the same period after initially
being placed in-service. This calculation excludes properties
classified as held for sale.
Occupied Property
A property is classified as occupied
upon commencement (i.e., start date) of a lease agreement, which
can occur contemporaneously with or subsequent to execution (i.e.,
signature).
Recurring Capital Expenditures
For our Same-Home
portfolio, Recurring Capital Expenditures includes replacement
costs and other capital expenditures recorded during the period
that are necessary to help preserve the value and maintain
functionality of our properties. For our total portfolio, we
calculate Recurring Capital Expenditures by multiplying (a) current
period actual Recurring Capital Expenditures per Same-Home property
by (b) our total number of properties, excluding newly acquired
non-stabilized properties and properties classified as held for
sale.
Same-Home Property
A property is classified as
Same-Home if it has been stabilized longer than 90 days prior to
the beginning of the earliest period presented under comparison. A
property is removed from Same-Home if it has been classified as
held for sale or has been taken out of service as a result of a
casualty loss.
Stabilized Property
A property acquired individually
(i.e., not through a bulk purchase) is classified as stabilized
once it has been renovated by the Company or newly constructed and
then initially leased or available for rent for a period greater
than 90 days. Properties acquired through a bulk purchase are first
considered non-stabilized, as an entire group, until (1) we have
owned them for an adequate period of time to allow for complete
on-boarding to our operating platform, and (2) a substantial
portion of the properties have experienced tenant turnover at least
once under our ownership, providing the opportunity for renovations
and improvements to meet our property standards. After such time
has passed, properties acquired through a bulk purchase are then
evaluated on an individual property basis under our standard
stabilization criteria.
Non-GAAP Financial Measures
This press release and the First Quarter 2021 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, Retained Cash Flow, 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 or 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 2021 Earnings Release and Supplemental Information
Package.
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 months ended
March 31, 2021 and 2020 (amounts in
thousands, except share and per share data):
|
For the Three
Months Ended
March 31,
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
Net income
attributable to common shareholders
|
$
|
30,214
|
|
|
$
|
20,244
|
|
Adjustments:
|
|
|
|
Noncontrolling
interests in the Operating Partnership
|
4,925
|
|
|
3,501
|
|
Gain on sale and
impairment of single-family properties and other, net
|
(16,069)
|
|
|
(6,319)
|
|
Adjustments for
unconsolidated joint ventures
|
382
|
|
|
238
|
|
Depreciation and
amortization
|
90,071
|
|
|
82,821
|
|
Less: depreciation and
amortization of non-real estate assets
|
(2,788)
|
|
|
(2,064)
|
|
FFO attributable to
common share and unit holders
|
$
|
106,735
|
|
|
$
|
98,421
|
|
Adjustments:
|
|
|
|
Acquisition, other
transaction costs and other
|
4,846
|
|
|
2,852
|
|
Noncash share-based
compensation - general and administrative
|
4,342
|
|
|
1,369
|
|
Noncash share-based
compensation - property management
|
999
|
|
|
439
|
|
Core FFO attributable
to common share and unit holders (1)
|
$
|
116,922
|
|
|
$
|
103,081
|
|
Recurring Capital
Expenditures
|
(9,651)
|
|
|
(8,711)
|
|
Leasing
costs
|
(975)
|
|
|
(910)
|
|
Adjusted FFO
attributable to common share and unit holders
(1)
|
$
|
106,296
|
|
|
$
|
93,460
|
|
Common
distributions
|
(36,967)
|
|
|
(17,690)
|
|
Retained Cash
Flow
|
$
|
69,329
|
|
|
$
|
75,770
|
|
|
|
|
|
Per FFO share and
unit:
|
|
|
|
FFO attributable to
common share and unit holders
|
$
|
0.29
|
|
|
$
|
0.28
|
|
Core FFO attributable
to common share and unit holders (1)
|
$
|
0.32
|
|
|
$
|
0.29
|
|
Adjusted FFO
attributable to common share and unit holders
(1)
|
$
|
0.29
|
|
|
$
|
0.26
|
|
|
|
|
|
Weighted-average FFO
shares and units:
|
|
|
|
Common shares
outstanding
|
316,982,460
|
|
|
300,813,069
|
|
Share-based
compensation plan (2)
|
756,539
|
|
|
720,386
|
|
Operating partnership
units
|
51,664,757
|
|
|
52,026,980
|
|
Total
weighted-average FFO shares and units
|
369,403,756
|
|
|
353,560,435
|
|
|
|
(1)
|
Core FFO and Adjusted
FFO attributable to common share and unit holders include
$4.5 million of increased uncollectible rents and
$0.4 million of increased uncollectible tenant reimbursements
during the first quarter of 2021 as a result of the COVID-19
pandemic.
|
(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
definition approved by the National Association of Real Estate
Investment Trusts, which defines FFO as net income or loss
calculated in accordance with GAAP, excluding 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 adjustments for unconsolidated partnerships and joint
ventures to reflect FFO on the same basis.
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
and other transaction costs incurred with business combinations and
the acquisition or disposition of properties as well as
nonrecurring items unrelated to ongoing operations, (2) noncash
share-based compensation expense, (3) hurricane-related charges,
net, which result in material charges to the impacted single-family
properties, and (4) gain or loss on early extinguishment of
debt.
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) capitalized
leasing costs incurred during the period. As a portion of our homes
are recently developed, acquired and/or renovated, we estimate
Recurring Capital Expenditures for our entire portfolio by
multiplying (a) current period actual Recurring Capital
Expenditures per Same-Home Property by (b) our total number of
properties, excluding newly acquired non-stabilized properties and
properties classified as held for sale.
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 investors and analysts in evaluating the
Company. We believe that FFO attributable to common share and unit
holders provides useful information to investors because 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, provide
useful information to investors because 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 shares and units include weighted-average common shares and
operating partnership units outstanding, as well as potentially
dilutive securities.
Retained Cash Flow is a non-GAAP financial measure that we
believe is helpful as a supplemental measure in assessing the
Company's liquidity. This metric is computed by reducing Adjusted
FFO attributable to common share and unit holders by common
distributions.
FFO, Core FFO and Adjusted FFO attributable to common share and
unit holders and Retained Cash Flow are not substitutes for net
income or net cash provided by operating activities, each 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, which is calculated as rents and other
single-family property revenues, excluding expenses reimbursed by
tenant charge-backs, less core property operating expenses, which
is calculated as property operating and property management
expenses, excluding noncash share-based compensation expense and
expenses reimbursed by tenant charge-backs.
Core NOI also excludes (1) gain or loss on early extinguishment
of debt, (2) hurricane-related charges, net, which result in
material charges to the impacted single-family properties, (3)
gains and losses from sales or impairments of single-family
properties and other, (4) depreciation and amortization, (5)
acquisition and other transaction costs incurred with business
combinations and the acquisition or disposition of
properties as well as nonrecurring items unrelated to ongoing
operations, (6) noncash share-based compensation expense, (7)
interest expense, (8) general and administrative expense, and (9)
other income and expense, net. We believe Core NOI provides useful
information to investors about 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
Recurring Capital Expenditures to calculate Same-Home Core NOI
After Capital Expenditures, which we believe provides useful
information to investors 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 or loss or net cash flows from operating
activities (as computed in accordance with GAAP).
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 months ended March 31, 2021 and 2020 (amounts in
thousands):
|
For the Three
Months Ended
March 31,
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
(Unaudited)
|
Core revenues and
Same-Home core revenues
|
|
|
|
Rents and other
single-family property revenues
|
$
|
312,573
|
|
|
$
|
287,342
|
|
Tenant
charge-backs
|
(45,795)
|
|
|
(40,013)
|
|
Core
revenues
|
266,778
|
|
|
247,329
|
|
Less: Non-Same-Home
core revenues
|
30,760
|
|
|
20,430
|
|
Same-Home core
revenues
|
$
|
236,018
|
|
|
$
|
226,899
|
|
|
|
Core property
operating expenses and Same-Home core property operating
expenses
|
Property operating
expenses
|
$
|
118,694
|
|
|
$
|
107,497
|
|
Property management
expenses
|
23,699
|
|
|
23,276
|
|
Noncash share-based
compensation - property management
|
(999)
|
|
|
(439)
|
|
Expenses reimbursed
by tenant charge-backs
|
(45,795)
|
|
|
(40,013)
|
|
Core property
operating expenses
|
95,599
|
|
|
90,321
|
|
Less: Non-Same-Home
core property operating expenses
|
12,274
|
|
|
10,193
|
|
Same-Home core
property operating expenses
|
$
|
83,325
|
|
|
$
|
80,128
|
|
|
|
Core NOI,
Same-Home Core NOI and Same-Home Core NOI After Capital
Expenditures
|
Net income
|
$
|
48,921
|
|
|
$
|
37,527
|
|
Gain on sale and
impairment of single-family properties and other, net
|
(16,069)
|
|
|
(6,319)
|
|
Depreciation and
amortization
|
90,071
|
|
|
82,821
|
|
Acquisition and other
transaction costs
|
4,846
|
|
|
2,147
|
|
Noncash share-based
compensation - property management
|
999
|
|
|
439
|
|
Interest
expense
|
28,005
|
|
|
29,715
|
|
General and
administrative expense
|
15,205
|
|
|
11,266
|
|
Other income and
expense, net
|
(799)
|
|
|
(588)
|
|
Core NOI
|
171,179
|
|
|
157,008
|
|
Less: Non-Same-Home
Core NOI
|
18,486
|
|
|
10,237
|
|
Same-Home Core
NOI
|
152,693
|
|
|
146,771
|
|
Less: Same-Home
Recurring Capital Expenditures
|
8,697
|
|
|
8,362
|
|
Same-Home Core NOI
After Capital Expenditures
|
$
|
143,996
|
|
|
$
|
138,409
|
|
Contact:
American Homes 4 Rent
Investor Relations
Phone: (855) 794-2447
Email: investors@ah4r.com
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SOURCE American Homes 4 Rent