Q1 2024 American Homes 4 Rent Earnings Call Transcript
Key Points
- American Homes 4 Rent reported a core FFO per share of $0.43, showing a 5.8% year-over-year growth.
- Demand for single-family rentals remains robust, supported by macro drivers such as national housing shortages and demographic trends.
- The company's Development Program continues to expand, aiming to deliver between 2,200 and 2,400 homes this year with high economic yields.
- Operational efficiency is highlighted by strong leasing momentum and occupancy rates, with same-home core revenue growth of 5.3%.
- American Homes 4 Rent is making significant strides in sustainability, with newly constructed homes being 54% more energy-efficient than typical American homes and the corporate headquarters receiving LEED Gold Certification.
- Core operating expense growth was reported at 5.9%, which could pressure net income if it continues to rise.
- The high-for-longer interest rate scenario might constrain new housing supply, potentially affecting future growth opportunities.
- Despite strong demand, the company noted the necessity of discounts to achieve desired yields from national builder acquisitions, indicating pricing pressures.
- The company's reliance on the Development Program for growth could pose risks if there are delays or increased costs in construction.
- While bad debt improved in March, there are ongoing concerns with local municipal and court system processing times, which could affect future collections.
Greetings, and welcome to American Homes 4 Rent First Quarter 2024 Earnings Conference Call. (Operator Instructions). As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Nicholas Fromm, Director of Investor Relations. Thank you. You may begin.
Good morning. Thank you for joining us for our first quarter 2024 earnings conference call. With me today are David Singelyn, Chief Executive Officer; Bryan Smith, Chief Operating Officer; and Chris Lau, Chief Financial Officer.
Please be advised that this call may include forward-looking statements. All statements, other than statements of historical facts, included in this conference call are forward-looking statements that are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected in these statements.
These risks and other factors that could adversely affect our business and future results are described in our press releases and in our filings with the SEC. All
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