American Homes 4 Rent Reports Second Quarter 2013 Financial Results

     American Homes 4 Rent Reports Second Quarter 2013 Financial Results

Significant increases in number of owned and leased homes

Closing of internalization transaction

Closing of initial public offering

PR Newswire

AGOURA HILLS, Calif., Aug. 20, 2013

AGOURA HILLS, Calif., Aug. 20, 2013 /PRNewswire/ -- American Homes 4 Rent
(NYSE: AMH) ("AMH", "we" or "us") today announced its financial and operating
results for the quarter ended June 30, 2013 and certain updated portfolio
information through July 31, 2013.

Highlights

  oIncrease in properties to 19,825 as of July 31, 2013 from 18,326 as of
    June 30, 2013
  oMaintained high occupancy level with 97% of properties leased that have
    been rent ready for more than 90 days
  o1,773 properties leased during July 2013, for a total of 11,753 leased
    properties as of month-end, with an additional 2,176 properties rent ready
    as of July 31, 2013
  oClosed internalization transaction on June 10, 2013
  oClosed transaction to acquire 4,778 properties held by joint venture with
    Alaska Permanent Fund Corporation on June 11, 2013 (the "Alaska
    Portfolio")
  oCompletion of initial public offering and concurrent private placements,
    and recent exercise in full of the underwriters' option to purchase
    additional shares.

"We are pleased with our recent accomplishments of internalizing our
management platform and completing our initial public offering. We believe
that our new public platform will provide us opportunities for the continued
expansion of our business across many fronts. We are also excited about our
continuing opportunity to acquire quality homes," said David P. Singelyn,
AMH's Chief Executive Officer.

Recent Transactions

As previously disclosed, on June 10, 2013, AMH closed an important transaction
to internalize certain operations previously provided to AMH by American Homes
4 Rent, LLC ("AH LLC"), a company formed by our founder and board chairman B.
Wayne Hughes. AMH is now self-managed with respect to corporate and property
management operations, which we believe provides an efficient structure for
both current operations and future growth.

On June 11, 2013, AMH completed the acquisition of 4,778 properties from a
joint venture with the Alaska Permanent Fund Corporation, substantially
increasing the size of its portfolio.

As previously announced, AMH completed its IPO in August 2013 and the
underwriters exercised in full their option to purchase additional shares.
Assuming that the underwriters' option closes as expected on August 21, 2013,
the sale of the IPO shares together with the shares sold in the concurrent
private placements to American Homes 4 Rent, LLC and the Alaska Permanent Fund
Corporation, will provide us with gross proceeds of $886.8 million, before
underwriters' discounts and offering costs.

Second Quarter 2013 Financial Results

AMH had total revenues of $18.1 million for the second quarter of 2013, a 176%
increase over revenues reported for the first quarter of 2013. This increase
was largely due to the acquisition of the Alaska Portfolio, which was 75%
leased as of the date of acquisition, and revenue from leases commencing
throughout the first and second quarters.

AMH reported net loss attributable to common shareholders of $14.0 million for
the second quarter of 2013 and $21.7 million for the six months ended June 30,
2013.

AMH had net operating income ("NOI") from leased properties of $10.7 million
for the second quarter of 2013, an increase of 164% over the first quarter of
2013. NOI from leased properties is a supplemental non-GAAP financial measure
that we define as rents from single-family properties, less property operating
expenses for leased single-family properties. A reconciliation from net
income / (loss) to NOI is included in a schedule accompanying this press
release.

Properties

AMH had 19,825 properties as of July 31, 2013 compared to 18,326 properties as
of June 30, 2013.

"We are pleased that we have been able to continue to successfully grow our
portfolio and lease our properties across a broad and diverse base of markets,
while maintaining our strict underwriting standards with respect to the
quality of the product and expected financial returns," said Jack Corrigan,
AMH's Chief Operating Officer.

The following tables provide a summary of properties in which AMH has an
interest as of July 31, 2013 and June 30, 2013.

Properties as of July 31, 2013 (1)
              Properties      Estimated Total     Estimated Total     Average per
                              Investment (2)      Book Value (3)      Property
                      % of    $         Avg. per  $         Avg. per  Square   Property
              Units   Total   millions  Property  millions  Property  Footage  Age
                                                                               (years)
Indianapolis, 1,718   8.7%    $252.1    $146,731  $246.1    $143,234  1,870    11.6
IN
Dallas-Fort   1,660   8.4%    269.9     162,603   262.2     157,927   2,209    10.2
Worth, TX
Greater
Chicago area, 1,361   6.9%    218.0     160,165   206.7     151,845   1,855    12.4
IL and IN
Atlanta, GA   1,216   6.1%    214.2     176,147   195.3     160,584   2,168    13.2
Houston, TX   1,027   5.2%    179.2     174,472   179.2     174,472   2,295    9.6
Phoenix, AZ   1,005   5.1%    173.7     172,834   169.4     168,545   1,848    11.9
Cincinnati,   960     4.8%    149.6     155,883   139.4     145,196   1,812    11.3
OH
Jacksonville, 892     4.5%    135.6     151,974   131.7     147,635   1,924    9.8
FL
Charlotte, NC 877     4.4%    152.0     173,271   146.8     167,376   1,948    10.6
Nashville, TN 869     4.4%    181.4     208,743   173.9     200,155   2,193    9.5
All Other (4) 8,240   41.6%   1,474.7   178,973   1,435.1   174,166   1,913    10.9
Total /       19,825  100.0%  $3,400.4  $171,519  $3,285.7  $165,733  1,972    11.0
Average





Properties as of June 30, 2013 (1)
              Properties      Estimated Total     Estimated Total     Average per
                              Investment (2)      Book Value (3)      Property
                      % of    $         Avg. per  $         Avg. per  Square    Property
              Units   Total   millions  Property  millions  Property  Footage   Age
                                                                                (years)
Dallas-Fort   1,515   8.3%    $248.6    $164,094  $240.8    $158,967  2,206     10.3
Worth, TX
Indianapolis, 1,533   8.4%    225.7     147,228   219.7     143,309   1,871     11.6
IN
Greater
Chicago area, 1,244   6.8%    201.4     161,868   190.0     152,765   1,865     12.4
IL and IN
Atlanta, GA   1,185   6.5%    209.5     176,790   190.6     160,820   2,171     13.2
Houston, TX   1,000   5.5%    174.7     174,650   174.7     174,650   2,289     9.7
Phoenix, AZ   941     5.1%    146.4     155,563   136.1     144,661   1,817     11.3
Cincinnati,   840     4.6%    145.9     173,745   141.6     168,613   1,848     11.9
OH
Jacksonville, 840     4.6%    128.7     153,256   124.9     148,648   1,935     9.9
FL
Nashville, TN 821     4.5%    171.9     209,320   164.4     200,199   2,192     9.5
Charlotte, NC 787     4.3%    136.5     173,470   131.3     166,899   1,939     10.6
All Other (4) 7,620   41.6%   1,373.4   180,240   1,333.6   175,015   1,920     10.9
Total /       18,326  100.0%  $3,162.7  $172,579  $3,047.7  $166,307  1,977     11.0
Average

(1) Includes 377 properties in which we hold an approximate one-third
    interest.
    For properties that we acquired directly, Estimated Total Investment
    represents our actual purchase price (including closing costs) and
    estimated renovation costs plus a 5% acquisition and renovation fee, if
    applicable. Estimated renovation costs represent the total costs we have
    incurred or expect to renovate a property to prepare it for rental. These
(2) costs typically include paint, flooring, appliances, blinds and
    landscaping. Estimated Total Investment differs from Estimated Total Book
    Value only with respect to the properties contributed by AH LLC. For
    properties contributed by AH LLC, Estimated Total Book Value is an
    estimate of the properties' GAAP book value, which includes estimates for
    renovation costs we expect to incur. These properties were recorded at the
    net book value of AH LLC as of the date of contribution. See note 3 below.
    Estimated Total Book Value represents the estimated book value on a GAAP
    basis of all properties. In the case of AH LLC's contribution of
    properties to us, for GAAP purposes these transactions are considered to
    be transactions between entities under common control under the provisions
    of ASC 805, Business Combinations. As a result, these properties have been
(3) reflected at the net carrying cost of AH LLC. For the properties acquired
    from the Alaska Joint Venture, the $904.5 million purchase price has been
    allocated among the properties in accordance with GAAP. For all other
    properties, Estimated Total Book Value represents the actual purchase
    price (including closing costs) and estimated renovation costs plus a 5%
    acquisition and renovation fee, if any.
(4) Represents 34 markets in 18 states.



Leasing and Renewal Experience

The following tables summarize our leasing experience on Stabilized Properties
^(1) through July 31, 2013 and June 30, 2013.

Leasing Experience as of July 31, 2013
                Number of Properties                                 Average
                         Available  Available  30+ Days   90+ Days   Annual
                Leased  for Rent   for Rent   Occupancy  Occupancy  Scheduled
                (1)      30+ Days   90+ Days   % (4)      % (5)      Rent Per
                         (2)        (3)                              Property
Dallas-Fort     966      995        972        97%        99%        $17,444
Worth, TX
Indianapolis,   938      996        954        94%        98%        14,600
IN
Greater
Chicago area,   428      473        449        90%        95%        19,140
IL and IN
Atlanta, GA     904      942        926        96%        98%        15,919
Houston, TX     482      528        495        91%        97%        17,923
Phoenix, AZ     691      745        731        93%        95%        13,142
Cincinnati, OH  511      548        533        93%        96%        16,868
Jacksonville,   539      552        542        98%        99%        15,386
FL
Nashville, TN   594      615        605        97%        98%        17,848
Charlotte, NC   428      516        433        83%        99%        15,371
All Other (6)   3,842    4,604      4,040      83%        95%        16,679
Total /         10,323   11,514     10,680     90%        97%        $16,374
Average



Leasing Experience as of June 30, 2013
                Number of Properties                                 Average
                         Available  Available  30+ Days   90+ Days   Annual
                Leased  for Rent   for Rent   Occupancy  Occupancy  Scheduled
                (1)      30+ Days   90+ Days   % (4)      % (5)      Rent Per
                         (2)        (3)                              Property
Dallas-Fort     817      840        824        97%        99%        $17,179
Worth, TX
Indianapolis,   744      783        756        95%        98%        14,549
IN
Greater
Chicago area,   359      402        375        89%        96%        19,136
IL and IN
Atlanta, GA     848      883        869        96%        98%        15,875
Houston, TX     366      396        370        92%        99%        17,536
Phoenix, AZ     654      711        704        92%        93%        12,984
Cincinnati, OH  404      473        437        85%        92%        16,859
Jacksonville,   499      512        502        97%        99%        15,372
FL
Nashville, TN   518      540        529        96%        98%        17,892
Charlotte, NC   367      404        371        91%        99%        15,296
All Other (7)   3,262    3,893      3,404      84%        96%        16,616
Total /         8,838    9,837      9,141      90%        97%        $16,249
Average



    Includes leases on properties for which we have completed renovations and
(1) excludes leases with tenants existing at the date of acquisition
    ("Stabilized Properties").
    Available for Rent 30+ Days represents the number of properties that have
(2) been leased after we have completed renovations or are available for rent
    (i.e., "rent-ready") for a period of greater than 30 days.
    Available for Rent 90+ Days represents the number of properties that have
(3) been leased after we have completed renovations or are available for rent
    (i.e., "rent-ready") for a period of greater than 90 days.
(4) Occupancy percentage is computed by dividing the number of leased
    properties by the number of properties available for rent 30+ days.
(5) Occupancy percentage is computed by dividing the number of leased
    properties by the number of properties available for rent 90+ days.
(6) Represents 30 markets in 18 states.
(7) Represents 29 markets in 17 states.

As previously disclosed, based on our experience with 471 leases that matured
before June 30, 2013, 65% of the tenants renewed their leases at an average
increase in rental rate of 2.4%.

Capital Activities and Liquidity

As of June 30, 2013, AMH had cash and cash equivalents of $251.4 million and
$670.0 million was outstanding on its credit facility. The initial closing of
AMH's IPO and concurrent private placements on August 6, 2013 provided us with
$747.4 million of proceeds, net of underwriters' discounts before other
offering costs. Proceeds from the IPO and concurrent private placements were
immediately used to pay down the outstanding balance of the credit facility.
The credit facility now provides for aggregate borrowings up to $500 million.

As previously reported, the underwriters have exercised in full their option
to purchase an additional 6,617,647 of our Class A common shares at the IPO
price of $16.00 per share, less underwriters' discounts. This transaction,
which is expected to close on August 21, 2013, will provide AMH with an
additional $100.9 million of proceeds, net of underwriters' discounts.

Conference Call

A conference call is scheduled on Wednesday, August 21, 2013, at 11:00 a.m.
Eastern Time to discuss AMH's financial results for the second quarter ended
June 30, 2013 and to provide a portfolio update. The domestic dial-in number
is (800) 434-1335 (for U.S. and Canada) and the international dial-in number
is (404) 920-6442 (conference ID number for either domestic or international
is 979119#). 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 September 4, 2013 by calling (800) 920-7487 (U.S.
and Canada) or (404) 920-1710 (international) or by using the link at
www.americanhomes4rent.com, under "For Investors." All forms of replay
utilize conference ID number 979119#.

About American Homes 4 Rent

American Homes 4 Rent is an internally managed Maryland real estate investment
trust, or REIT, focused on acquiring, renovating, leasing, and operating
single-family homes as rental properties. As of July 31, 2013, we owned 19,825
single-family properties in selected submarkets in 22 states and we
continually evaluate potential target markets that meet our underwriting
criteria and are located where we believe we can achieve sufficient scale for
internalized property management. We are 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.

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, the expected timing of the closing of the underwriters' option to
purchase additional shares, our belief that our self-managed platform will
provide an efficient structure for both current operations and future growth,
our ability to continue growing our single-family home portfolio and expanding
our business across many fronts and our continuing opportunity to acquire
quality homes. AMH has based these forward-looking statements on its current
expectations and assumptions about future events. While AMH'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 AMH's control. Investors should not place undue
reliance on these forward-looking statements. All information in this press
release is current as of the date of the release. AMH undertakes no
obligation to update any forward-looking statements to conform to actual
results or changes in its expectations. 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 AMH in general, see AMH's prospectus filed with the Securities
and Exchange Commission on August 2, 2013.



American Homes 4 Rent
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share information)
                                     June 30, 2013        December 31, 2012
                                     (Unaudited)
Assets
Single-family properties:
 Land                                $           $         
                                     580,433              96,139
 Buildings and improvements          2,472,921            411,706
                                     3,053,354            507,845
 Less: accumulated depreciation      (13,850)             (2,132)
Single-family properties, net        3,039,504            505,713
Cash and cash equivalents            251,406              397,198
Restricted cash for resident         13,572               -
security deposits
Rent and other receivables           7,644                6,586
Escrow deposits, prepaid expenses    27,936               11,961
and other assets
Deferred costs and other             21,978               -
intangibles, net
Goodwill                             120,655              -
Total assets                         $            $         
                                     3,482,695            921,458
Liabilities
Credit facility                      $           $         
                                     670,000                   -
Accounts payable and accrued         75,318               11,282
expenses
Amounts payable to affiliates        21,160               5,012
Contingently convertible Series E    64,881               -
units liability
Total liabilities                    831,359              16,294
Commitments and contingencies
Equity
 Shareholders' equity:
  Class A common shares, $0.01
 par value
  per share, 450,000,000
 shares authorized,
  129,433,425 and 38,663,998
 shares issued and
  outstanding at June 30, 2013
 and
  December 31, 2012,            1,294                387
 respectively
  Class B common shares, $0.01
 par value
  per share, 50,000,000 shares
 authorized,
  635,075 and 667 shares
 issued and
  outstanding at June 30, 2013
 and
  December 31, 2012,            6                    -
 respectively
 Additional paid-in capital          1,965,413            914,565
 Accumulated deficit                 (32,027)             (10,278)
 Total shareholders' equity          1,934,686            904,674
 Noncontrolling interest             716,650              490
  Total equity            2,651,336            905,164
Total liabilities and equity         $            $         
                                     3,482,695            921,458



American Homes 4 Rent
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share information)
(Unaudited)
                          For the Three Months       For the Six Months
                          Ended June 30,              Ended June 30,
                          2013           2012         2013         2012
Revenues:
   Rents from             $          $       $        $     
   single-family          17,585          184      24,144        280
   properties
   Other                  535            -            535          -
Total revenues            18,120         184          24,679       280
Expenses:
   Property operating
   expenses
    Leased
   single-family          6,859          90           9,362        133
   properties
    Vacant
   single-family          4,391          96           6,120        118
   properties
   General and
   administrative         811            1,487        2,436        1,657
   expense
   Advisory fees          3,610          -            6,352        -
   Interest expense       -              -            370          -
   Noncash share-based    279            -            453          -
   compensation expense
   Acquisition fees and   2,099          -            3,489        -
   costs expensed
   Depreciation and       10,879         77           13,784       102
   amortization
Total expenses            28,928         1,750        42,366       2,010
Gain on remeasurement of  10,945         -            10,945       -
equity method investment
Income / (loss) from      137            (1,566)      (6,742)      (1,730)
continuing operations
Discontinued operations
   Gain on disposition    904            -            904          -
   of assets
   Income from
   discontinued           82             -            104          -
   operations
Total income from         986            -            1,008        -
discontinued operations
Net income / (loss)       1,123          (1,566)      (5,734)      (1,730)
Noncontrolling interest   4,664          -            5,559        -
Conversion of preferred   10,456         -            10,456       -
units
Net loss attributable to  $          $       $        $     
common shareholders       (13,997)       (1,566)      (21,749)     (1,730)
Weighted average shares
outstanding - basic and   95,971,706     3,301,667    72,234,717   3,301,667
diluted
Net loss per share -
basic and diluted (1):
   Loss from continuing   $        $       $       $     
   operations             (0.16)          (0.47)      (0.31)      (0.52)
   Discontinued           0.01           -            0.01         -
   operations
Net loss attributable to
common shareholders
   per share - basic and  $        $       $       $     
   diluted (1)            (0.15)          (0.47)      (0.30)      (0.52)

    Due to inherent complexity of the above condensed consolidated financial
(1) statements as a result of the transaction completed between entities under
    common control, AMH does not consider the historical net loss per share
    computations as meaningful.

American Homes 4 Rent
Condensed Consolidated Statements of Equity
(Amounts in thousands, except share information)
(Unaudited)
                  Class A common       Class B common
                  shares               shares
                                                        Additional
                  Number               Number           paid-in     Accumulated  Shareholders'  Noncontrolling  Total
                  of shares    Amount  of       Amount  capital     deficit      equity         interest        equity
                                       shares
Balances at
 December 31,   38,663,998   $      667      $     $          $ (10,278)   $  904,674    $         $ 
2012                           387              -    914,565                                490             905,164
Issuance of Class
A
 common shares,
net
 of offering
costs
 of $44,003     46,718,750   467     -        -       703,030     -            703,497        -               703,497
2,770 Property
 Contribution   -            -       634,408  6       (356,487)   -            (356,481)      390,016         33,535
Settlement of
 subscription   434,783      4       -        -       (4)         -            -              -               -
agreement
Management
                -            -       -        -       -           -            -              65,188          65,188
Internalization
Alaska Joint
Venture
 Acquisition    43,609,394   436     -        -       703,856     -            704,292        200,195         904,487
RJ Joint Ventures
 Acquisition    -            -       -        -       -           -            -              61,060          61,060
Share-based
 compensation   6,500        -       -        -       453         -            453            -               453
Distributions to
noncontrolling
 interests      -            -       -        -       -           -            -              (5,858)         (5,858)
Conversion of
 preferred      -            -       -        -       -           (10,456)     (10,456)       -               (10,456)
units
Net loss          -            -       -        -       -           (11,293)     (11,293)       5,559           (5,734)
Balances at
 June 30, 2013  129,433,425  $       635,075  $     $           $ (32,027)   $1,934,686     $   716,650  $2,651,336
                               1,294             6     1,965,413

(Photo: http://photos.prnewswire.com/prnh/20130820/LA67031)

Non-GAAP Financial Measures

Reconciliation of Net Operating Income to Net Income (Loss)

Net operating income, or NOI, from leased properties is a supplemental
non-GAAP financial measure that AMH defines as rents from single-family
properties, less property operating expenses for leased single-family
properties. NOI excludes income from discontinued operations, gain on
remeasurement of equity method investment, depreciation and amortization,
acquisition fees and costs expensed, noncash share-based compensation expense,
interest expense, advisory fees, general and administrative expense, property
operating expenses for vacant single-family properties and other revenues.

AMH considers NOI from leased properties to be a meaningful financial measure
because we believe it is helpful to investors in understanding the operating
performance of our leased single-family properties. It should be considered
only as a supplement to net income (loss) as a measure of our performance. NOI
from leased properties should not be used as a measure of AMH's liquidity, nor
is it indicative of funds available to fund AMH's cash needs, including its
ability to pay dividends or make distributions. NOI from leased properties
also should not be used as a supplement to or substitute for net income (loss)
or net cash flows from operating activities (as computed in accordance with
GAAP).

The following is a reconciliation of NOI to net income (loss) as determined in
accordance with GAAP:

                                        Three Months Ended
                                        June 30, 2013        March 31, 2013
 Net income / (loss)                    $       1,123  $       
                                                             (6,857)
 Income from discontinued operations    (986)                (22)
 Gain on remeasurement of equity method (10,945)             -
 investment
 Depreciation and amortization          10,879               2,905
 Acquisitions fees and costs expensed   2,099                1,390
 Noncash share-based compensation       279                  174
 expense
 Interest expense                       -                    370
 Advisory fees                          3,610                2,742
 General and administrative expense     811                  1,625
 Property operating expenses for vacant 4,391                1,729
 single-family properties
 Other revenues                         (535)                -
 Net operating income                   $      10,726   $        
                                                             4,056



Contact: Peter J. Nelson
American Homes 4 Rent
Tel: (855) 794-2447

SOURCE American Homes 4 Rent
 
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