On August 1, 2024, American Homes 4 Rent (AMH, Financial) released its 8-K filing detailing its financial and operating results for the second quarter of 2024. American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S.
Performance Highlights
American Homes 4 Rent (AMH, Financial) reported a 7.1% year-over-year increase in rents and other single-family property revenues, reaching $423.5 million for the second quarter of 2024. This figure surpassed the analyst estimate of $418.19 million. However, the company reported a net income attributable to common shareholders of $92.1 million, or $0.25 per diluted share, which exceeded the estimated earnings per share of $0.14.
Financial Achievements and Challenges
Despite the revenue growth, net income decreased from $98.0 million, or $0.27 per diluted share, in the second quarter of 2023. The decline was primarily due to lower net gains on property sales, partially offset by increases in rents and other single-family property revenues exceeding increases in total expenses.
Core Funds from Operations (Core FFO) attributable to common share and unit holders increased by 8.5% year-over-year to $0.45 per FFO share and unit. Adjusted Funds from Operations (Adjusted FFO) also saw a 9.4% increase to $0.39 per FFO share and unit. These improvements were primarily driven by higher rental rates.
Income Statement and Key Metrics
For the second quarter of 2024, Core Net Operating Income (Core NOI) from Same-Home properties increased by 5.9% year-over-year. The Same-Home Average Occupied Days Percentage was 96.6%, with a 5.3% blended rate growth. The company delivered 671 newly constructed homes to its wholly-owned portfolio and unconsolidated joint ventures during the quarter.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Rents and Other Revenues | $423.5 million | $395.5 million |
| Net Income | $92.1 million | $98.0 million |
| Core FFO per Share | $0.45 | $0.41 |
| Adjusted FFO per Share | $0.39 | $0.36 |
Balance Sheet and Cash Flow
As of June 30, 2024, American Homes 4 Rent had cash and cash equivalents of $718.4 million and total outstanding debt of $5.1 billion. The company issued $500.0 million of 5.500% unsecured senior notes due 2034 during the second quarter, raising net proceeds of $494.0 million. The company also generated $55.4 million of Retained Cash Flow and sold 391 properties, generating $124.4 million of net proceeds.
Guidance and Future Outlook
American Homes 4 Rent raised its full-year 2024 Core FFO guidance midpoint by $0.03 per share and unit to $1.76, representing anticipated full-year growth of 6.0% over the prior year. The company expects Core NOI growth from both the Same-Home and Non-Same Home portfolios driven by better core revenues growth and lower bad debt expense.
"The consistency and predictability of the AMH platform was on full display in the second quarter. Our teams did a great job executing across all areas of the business, driving positive impacts on both the topline and controllable expenses, contributing to an increase in full year Core FFO per share growth guidance by 3 cents to $1.76 at the midpoint," stated David P. Singelyn, Chief Executive Officer at AMH.
For more detailed financial information and analysis, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from American Homes 4 Rent for further details.
