American Homes 4 Rent Reports First Quarter 2014 Financial and Operating Results

   American Homes 4 Rent Reports First Quarter 2014 Financial and Operating
                                   Results

- Revenue Increased 19.1% Compared to Fourth Quarter 2013 -

- Generated Core Funds From Operations of $0.12 per FFO Share -

- Acquired 2,237 Homes, Increasing Portfolio to More Than 25,000 Homes -

- Leased Homes Increased by 3,338 Homes, Raising 90+ Days Rent Ready Occupancy
to 95.1% -

PR Newswire

AGOURA HILLS, Calif., May 5, 2014

AGOURA HILLS, Calif., May 5, 2014 /PRNewswire/ --American Homes 4 Rent (NYSE:
AMH), a leading provider of high quality single-family rental homes ("AMH,"
"the Company," "we" or "us"), today announced its financial and operating
results for the quarter ended March 31, 2014.

Highlights

  o19.1% sequential quarterly growth in revenues to $77.3 million.
  oCore funds from operations ("Core FFO") (as defined) for the first quarter
    of 2014 were $28.1 million or $0.12 per FFO share.
  oNet operating income from leased properties ("NOI") for the quarter ended
    March 31, 2014 was $47.7 million, a 19.4% increase from the $40.0 million
    reported for the fourth quarter ended December 31, 2013.
  oAcquired 2,237 homes, increasing the portfolio to 25,505 single-family
    properties as of March 31, 2014 from 23,268 as of December 31, 2013. The
    Company acquired an additional 513 single-family properties in April 2014,
    increasing total portfolio to 26,018. 
  oAs of March 31, 2014, the Company had 20,666 leased properties, an
    increase of 3,338 properties from December 31, 2013. 
  oContinued strong occupancy with 95.1% of properties leased that have been
    rent-ready for more than 90 days and total portfolio occupancy of 81.0%.
    Total leases increased by 1,307 properties in April 2014, increasing total
    portfolio occupancy to 84.5% as of April 30, 2014.
  oOn May 2, 2014, the Company issued 7,600,000 5.50% Series C participating
    preferred shares in an underwritten public offering and concurrent private
    placement, raising gross proceeds of $190.0 million. In addition, the
    Company granted the underwriters an option to purchase up to an additional
    1,110,000 5.50% Series C participating preferred shares on or before May
    29, 2014 solely to cover overallotments.

"We had another strong quarter as evidenced by our solid operating
performance," stated David Singelyn, American Homes 4 Rent's Chief Executive
Officer. "We are just beginning to realize the benefits of our fully
internalized operating and property management platform as evidenced by our
leased portfolio increasing by 3,338 homes in the quarter, which increased our
portfolio occupancy to 81.0%, and our stabilized portfolio occupancy, defined
as homes that have been rent-ready for at least 90 days, to 95.1%. In
addition, we continued to put our capital to work, acquiring 2,237 homes in 31
of our target markets. We are excited about the upcoming opportunities we
have at American Homes 4 Rent and, through our select financings, are laying
the groundwork to continue to grow and scale this tremendous business."

First Quarter 2014 Financial Results

The Company had total revenues of $77.3 million for the first quarter of 2014,
an increase of 19.1% over the $64.9 million in total revenues for the fourth
quarter of 2013. Revenue growth was driven by continued strong leasing
activity, as our total leased portfolio grew by 3,338 homes during the first
quarter of 2014.

The Company had NOI from leased properties of $47.7 million for the first
quarter of 2014, an increase of 19.4% over the $40.0 million reported for the
fourth quarter of 2013. This increase is primarily due to the growth in rental
income resulting from a larger number of leased properties.

The Company reported Core FFO of $28.1 million, or $0.12 per FFO share for the
first quarter of 2014, compared to Core FFO of $25.6 million, or $0.11 per FFO
share, for the fourth quarter of 2013. Growth in Core FFO was primarily driven
by higher property NOI, as described above.

The Company reported a net loss of $6.9 million for the first quarter of 2014.

NOI, FFO and Core FFO are supplemental non-GAAP financial measures.
Reconciliations to GAAP measures are provided in a schedule accompanying this
press release.

Portfolio

As of March 31, 2014, the Company had 20,666 leased properties, an increase of
3,338 properties from December 31, 2013. At March 31, 2014, our occupancy
rate for our portfolio of properties that have been rent-ready for more than
90 days was 95.1%, compared to 94.5% at December 31, 2013. Subsequent to
quarter-end, our total leased portfolio increased by an additional 1,307
properties, increasing our total portfolio occupancy to approximately 84.5% at
April 30, 2014. 

Investments

In the first quarter of 2014, the company acquired 2,237 homes, increasing our
total portfolio to 25,505 homes as of March 31, 2014, representing 9.6%
increase over our portfolio of 23,268 homes as of December 31, 2013.
Subsequent to quarter-end, we acquired an additional 513 properties through
April 30, 2014. 

Capital activities

On May 2, 2014, the Company issued 7,400,000 5.50% Series C participating
preferred shares in an underwritten public offering for gross proceeds of
approximately $185.0 million. In addition, the Company concurrently issued
200,000 5.50% Series C participating preferred shares in a private placement
to the daughter of the Company's Chairman for gross proceeds of $5.0 million.
The Series C participating preferred shares have an initial liquidation
preference of $25.00 per share that may be increased by an additional amount
based on home price appreciation in AMH's top 20 markets as determined by the
Federal Housing Finance Agency's House Price Index, as described in the
prospectus for the securities. The 5.50% Series C participating preferred
shares will be traded on the New York Stock Exchange under the symbol
"AMHPRC."

Recent announcements

On April 29, 2014, the Company announced the appointment of Diana M. Laing as
Chief Financial Officer, effective May 18, 2014. Ms. Laing previously served
as Chief Financial Officer and Secretary of Thomas Properties Group, Inc., a
publicly-traded real estate operating company engaged in the development,
redevelopment and operation of Class A office propertiesin the U.S. from May
2004 until it merged withParkway Properties in December 2013. Before that,
she held a number of senior executive finance positions in the real estate
industry, including as Executive Vice President, Chief Financial Officer and
Corporate Secretary of Arden Realty, a NYSE-listed REIT engaged in the
ownership and operation of commercial office properties, from 1996 to 2000.

Additional information

A copy of AMH's First Quarter 2014 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 Tuesday, May 6, 2014, at 10:00 a.m. Eastern
Time to discuss AMH's financial results for the quarter ended March 31, 2014
and to provide an update on its business. The domestic dial-in number is (877)
705-6003 (for U.S. and Canada) and the international dial-in number is (201)
493-6725 (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 May 20, 2014 by calling
(877) 870-5176 (U.S. and Canada) or (858) 384-5517 (international), replay pin
number 13580256, 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 March 31, 2014, we
owned 25,505 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 we are just beginning to realize the benefits of our
fully internalized operating platform. 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, 2013.

Non-GAAP Financial Measures

This press release and the First Quarter 2014 Supplemental Information Package
include FFO, Core FFO and NOI, which are non-GAAP financial measures. We
believe these are helpful to understanding our financial performance and are
widely used in the REIT industry. Because other REITs may not compute these
financial measures in the same way we do, FFO, Core FFO and NOI may not be
comparable among REITs. In addition, FFO, Core FFO and NOI are not substitutes
for net income / (loss) or cash flow from operations, as defined by GAAP, as
measures of our liquidity, operating performance or our 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 Supplemental Information Package.

Contact:
American Homes 4 Rent
Investor Relations
Phone: 855-794-2447
Email: investors@ah4r.com



American Homes 4 Rent

Condensed Consolidated Balance Sheets

(Amounts in thousands, except share information)
                                        March 31, 2014       December 31, 2013
                                        (Unaudited)
Assets
Single-family properties:
 Land                                   $      797,079  $        
                                                             728,362
 Buildings and improvements             3,507,526            3,188,693
 Single-family properties held for      6,226                6,569
 sale
                                        4,310,831            3,923,624
 Less: accumulated depreciation         (92,177)             (62,202)
Single-family properties, net           4,218,654            3,861,422
Cash and cash equivalents               103,249              148,989
Restricted cash for resident security   32,586               26,430
deposits
Rent and other receivables, net         6,180                6,863
Escrow deposits, prepaid expenses and   24,081               39,212
other assets
Deferred costs and other intangibles,   18,628               20,573
net
Goodwill                                120,655              120,655
Total assets                            $    4,524,033   $      
                                                             4,224,144
Liabilities
Credit facility                         $      671,000  $        
                                                             375,000
Accounts payable and accrued expenses   112,583              103,397
Amounts payable to affiliates           6,799                -
Contingently convertible Series E       69,694               66,938
units liability
Preferred shares derivative liability   29,849               28,150
Total liabilities                       889,925              573,485
Commitments and contingencies
Equity
 Shareholders' equity:
  Class A common shares, $0.01 par
 value
  per share, 450,000,000 shares
 authorized,
  184,869,219 shares issued and
 outstanding
  at March 31, 2014 and December   1,848                1,848
 31, 2013
  Class B common shares, $0.01 par
 value
  per share, 50,000,000 shares
 authorized,
  635,075 shares issued and
 outstanding
  at March 31, 2014 and December   6                    6
 31, 2013
  Preferred shares, $0.01 par value
 per share,
  100,000,000 shares authorized,
 9,460,000 and
  9,060,000 issued and
 outstanding at March 31, 2014
  and December 31, 2013,           95                   91
 respectively
 Additional paid-in capital             3,004,928            2,996,478
 Accumulated deficit                    (86,430)             (63,479)
 Total shareholders' equity             2,920,447            2,934,944
 Noncontrolling interest                713,661              715,715
  Total equity               3,634,108            3,650,659
Total liabilities and equity            $    4,524,033   $      
                                                             4,224,144



American Homes 4 Rent

Condensed Consolidated Statements of Operations

(Amounts in thousands, except share information)

(Unaudited)
                                            For the Three Months
                                            Ended March 31,
                                            2014               2013
Revenues:
   Rents from single-family properties      $    73,761    $    6,495
   Other revenues from single-family        3,248              64
   properties
   Other                                    269                -
Total revenues                              77,278             6,559
Expenses:
   Property operating expenses
    Leased single-family properties    29,266             2,503
    Vacant single-family properties    9,043              1,729
   and other
   General and administrative expense       5,074              1,625
   Advisory fees                            -                  2,742
   Interest expense                         1,502              370
   Noncash share-based compensation         532                174
   expense
   Acquisition fees and costs expensed      452                1,390
   Depreciation and amortization            35,131             2,905
Total expenses                              81,000             13,438
Remeasurement of Series E units             (2,756)            -
Remeasurement of Preferred shares           (457)              -
Loss from continuing operations             (6,935)            (6,879)
Discontinued operations
   Gain on disposition of single-family     -                  -
   properties
   Income from discontinued operations      -                  22
Total income from discontinued operations   -                  22
Net loss                                    (6,935)            (6,857)
Noncontrolling interest                     3,620              895
Dividends on preferred shares               3,121              -
Net loss attributable to common             $   (13,676)    $   (7,752)
shareholders
Weighted average shares outstanding -       185,504,294        48,233,982
basic and diluted
Net loss per share - basic and diluted:
   Loss from continuing operations          $     (0.07)  $    (0.16)
   Income from discontinued operations      -                  -
Net loss attributable to common
shareholders
   per share - basic and diluted            $     (0.07)  $    (0.16)

Non-GAAP Financial Measures

Funds from Operations and Core Funds from Operations

The following is a reconciliation of net loss attributable to common
shareholders to FFO and Core FFO for the three months ended December 31, 2013
and March 31, 2014 (amounts in thousands, except share and per share
information):

                                      For the Three Months Ended
                                      December 31, 2013      March 31, 2014
Net loss attributable to common       $             $      
shareholders                          (14,519)              (13,676)
Adjustments:
 Noncontrolling interests in the      3,718                  3,715
 Operating Partnership
 Depreciation and amortization of     31,702                 33,827
 real estate assets
Funds from operations                 $            $      
                                      20,901                 23,866
Adjustments:
 Acquisition fees and costs expensed  814                    452
 Noncash share-based compensation     473                    532
 expense
 Remeasurement of Series E units      1,619                  2,756
 Remeasurement of Preferred shares    1,810                  457
Core funds from operations            $            $      
                                      25,617                 28,063
Weighted average number of FFO        239,122,332            239,127,560
shares (1)
FFO per weighted average FFO share    $            $        
                                        0.09               0.10
Core FFO per weighted average FFO     $            $        
share                                   0.11               0.12

    Includes quarterly weighted average common shares outstanding and assumes
(1) full conversion of all Operating Partnership units outstanding, including
    13,787,292 Class A units, 31,085,974 Series C units, 4,375,000 Series D
    units and 4,375,000 Series E units.

FFO is a non-GAAP 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 of depreciable real estate and impairment
write-downs associated with depreciable 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 is a non-GAAP financial measure that we use as a supplemental measure
of our performance. We compute Core FFO by adjusting FFO for (1) acquisition
fees and costs expensed incurred with recent business combinations and the
acquisition of properties with existing leases, (2) noncash share-based
compensation expense and (3) noncash fair value adjustments associated with
remeasuring our Series E units liability and Preferred shares derivative
liability to fair value.

We present FFO and FFO per FFO share because we consider FFO to be an
important measure of the performance of real estate companies, as do many
analysts in evaluating our Company. We believe that FFO is a helpful measure
of a REIT's performance since FFO 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 Core FFO per FFO share are helpful to
investors as supplemental measures of the operating performance of our 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 and Core FFO are not a substitute for net cash flow provided by operating
activities or net loss per share, as determined in accordance with GAAP, as a
measure of our liquidity, operating performance or ability to pay dividends.
FFO and Core FFO also are not necessarily indicative of cash available to fund
future cash needs. Because other REITs may not compute FFO and Core FFO in
the same manner, FFO and Core FFO may not be comparable among REITs.

Reconciliation of Net Operating Income to Net Loss

NOI is a supplemental non-GAAP financial measure that AMH defines as rents and
fees from single-family properties and tenant charge-backs, less property
operating expenses for leased single-family properties. NOI excludes
remeasurement of preferred shares, remeasurement of Series E units,
depreciation and amortization, acquisition fees and costs expensed, noncash
share-based compensation expense, interest expense, general and administrative
expense, property operating expenses for vacant single-family properties and
other and other revenues.

AMH considers NOI 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 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 also should not be used as a 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 loss as determined in
accordance with GAAP (amounts in thousands):

                                    For the Three Months Ended
                                    December 31, 2013    March 31, 2014
Net loss                            $      (9,471)  $       (6,935)
Remeasurement of Preferred shares   1,810                457
Remeasurement of Series E units     1,619                2,756
Depreciation and amortization       33,160               35,131
Acquisitions fees and costs         814                  452
expensed
Noncash share-based compensation    473                  532
expense
Interest expense                    -                    1,502
General and administrative expense  3,667                5,074
Property operating expenses for
vacant
 single-family properties and     8,348                9,043
other
Other revenues                      (420)                (269)
Net operating income               $      40,000   $       47,743





SOURCE American Homes 4 Rent

Website: https://www.americanhomes4rent.com
 
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