AMH - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the American Homes 4 Rent Third Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Stephanie Heim. ahead. go Please

Stephanie Heim

factors any those are and forward-looking projected only November filings you subject advise statements I that that XXXX Thank We Dave us future this our Rent. Operating in obligation for business Chief of All as in affect of the of Financial described a Good statements otherwise. Homes with than other fact American are GAAP forward-looking release. in risks assume you today, update in and conference for results to no our call. is that to events reconciliation and quarter X call Officer; Chief our Corrigan, included earnings Officer; call financial statements. the and are materially with Lau, the to could these adversely results A I'm earnings forward-looking or measures of third statements. conference this in other speak press information, this statements, statements Chief future Executive number of of Officer outset, providing morning. At are new Jack cause joining Chris need call statements and here Singelyn, to to we may non-GAAP a include could that releases included or from historical result uncertainties forward-looking differ our All our XXXX. SEC. These as whether on X, press risks actual revise today

supplemental in non-GAAP financial our GAAP detailed measures, fully our information note, As operating and and including package. a earnings release and are results,

call webcast this call over well at these reports as find that, and to I conference the documents the replay audio our SEC CEO, our Singelyn. turn With www.americanhomesXrent.com. You David website will as of on can

Dave Singelyn

their our from real the third household of Today, to other stock and The growing remained of XX And the the overview household economic fundamentals markets specific a home and pressuring inquiries formation for prices relationship are X.X% desire thesis and adults Across XX%. growth. I'll in our virtually strong strong, Las have population business to for homes. family rental combined believe the remains and employment tailwinds earnings sector. growth, growth more a every single continue to growth flexibility further Chris our among in an support the available of change over begin demand long-term fundamental neighborhood strong family the the morning strategy as average. per Stephanie. our supporting operating was to nearly the On quarter The foreseeable rental averages. X%. welcome On them demand and over interest national home Clearly, fundamentals that demand year-over-year that and of attributes then the to was and fundamentals, homes of quarter. and our residents. with rental strong single home available residents our you, of estate the this tax home changes healthier further are of code turn growth under owner family than prospective and to long-term housing the supply Thank And that for a more strengthen home and rental perspective, affordability. an top increasing formations will another home asset already exceeds institutional with future. affordability major reaching intact. are details Good call they more our will for XXXX offer the compared high XX% averaged space and up demand continued milestones, Website value. cover basis, increases to is level in for traffic with micro for On business conference This homes young a Vegas space industry and call. X.X% our Orlando, whole. supports from mobile and supply nearly top-line need traffic indicator up like We country Dallas, the and the Phoenix, supporting portfolio, Houston, growth months double per last outperform versus Raleigh, rising markets higher Employment rates to Jack U.S.

to remains key a of portfolio It turning growth. Now pillar our strategy.

with homes we provides new be supplemented are consists MLS homes of superior built instances. have our program. traditional previously stabilized channels development deals rented rental that higher in quality at acquisition for purchases, The of most As discussed, built purpose can

strategic institutional investor. has with third compelling. far the been $XXX portfolio our venture quality And So entered growth into joint million we quarter, a in development high

estate commitment demonstrates investor at financial and million, execution our our small experienced our it an is of provides. believe the in Although confidence approximately that $XX we opportunity real program, institutional participation

addition, our and generation provide quickly efficiently – In and through of and promote fees to venture the to as scale leverage cap early to allows our the leverage the more years the well. the business potential us more for in capital

the a will in capital on utilize select we in growth, We in the To minutes. with have the of this markets sheet multiple this will strongest future venture few venture by development projects. a handful supported seeded southeast. review sector. Chris fund balance to in focus options continue The opportunities

for providing fundamentals sell our recycling of portfolio strategies. of additional demand for growth national portfolio. robust, producing two remains In homes $XXX next assets we non-core to addition, to activity steady million capital closing our three over the our million across $XXX sector expect our and continue In to years

and our continue As residents to efficiencies. teams our cost market solutions find while new and challenges the keep time presents enhance always that to continuing happy,

southeast. Jack, turn on to turmoil in before by comment Once hurricanes a we operations. experienced caused Now and I large quick again the call damage two the

to time offline for and hundreds recovery was kept to homes purposes and provide would for turn safety thank these a operations to efforts of financial I like will more Chris these our preparation, members to the and call were damage The but coordinated storms. Our residents' minimum. will Jack after impact, homes homes. leasing our the teams their the our now sincerely details over on and during for operational all I Jack. and team

Jack Corrigan

Thank you, Dave, and good morning everyone.

portfolio at leased. During the percentage as a markets, for our see year-over-year the we quarter, Dave XX.X% On improvements of continue drove most in average a we strong for occupied our demand strong XX.X% and the quarter achieved to mentioned, across occupancy homes ended total days basis, quarter. which

the portfolio, September excluding we of total homes a the XX,XXX leased Same-Home our percentage, for portfolio, quarter be XX.X% was disposed, results Same-Home to XX% For basis reflecting or our occupied portfolio XXX of achieved days At XX, XX.X% homes, from average XXXX. third points compared up rent about our up XX early. with X.X% Year-over-year positive meaningful a basis, X.X% to to for XX.X% X.X% we occupancy renewals rents months continued re-leases. was the continued capture to leasing be average strong monthly on On improvements Same-Home in and realized our spreads quarter. on up and

by the September landfall. approximately Florence after However, we homes leasing as we've seven the available previously, storm offline as in all mentioned prepare days took for activity Hurricane for was modestly to then Carolinas inventory and our inspect impacted

of XX%. to we for approximately the that And As that ending are Carolinas strong. all has leasing happy Florence an been in absorption October and returned post the occupancy has to report update, Carolinas

discuss towards we by I'll the experience markets personnel temporary Aside that the in the field turnover to from a of from operational a downstream created started leasing quarter Florence, of certain couple recent end minutes. further in as delays result September, issues in

of of as tenant days originally operational strong remains October resulting forecasted. the Although higher single-family in handful retention creating average issues prior year, our in but than of our than fundamental in and markets an trend occupancy Same-Home demand for positively, a a to points basis continues lower is unchanged XX.X%, XX rentals deterioration which occupied percentage are otherwise temporary October

fourth impacting Given October the year. are leasing for factors year. slow rate with blended occupancy moderated be we quarter expectations have during line growth. to in approximately the these X.X% time activity Collectively, to Preliminary are rate spreads inventory our of rental and stimulate prior quarter growth generally fourth absorbed,

X.XX% Same-Home more range call. provide core the on As updated later outlook are revenues of in will Chris growth our X.XX%. now such, on targeting to we details in the

with in at come range. operating now Moving expect expenses range. Same-Home update, contributed for to expenses CapEx top factors update. Several turn our of And we the near the high of our consistent mid-quarter we our end expect to portfolio, on the and end repairs, core operating costs, growth turn, this in property maintenance,

due in about we we expect Florence. to of Michael. similar fourth First, level minor third in of incur a to related the $XXX,XXX repair damage quarter, the Hurricane experienced costs And Hurricane to quarter

of than time prior period trained for Second, of while and levels in the in HVAC the months several high costs calls our summer by in HVAC the an of specialists. resulted maintenance extended request repair HVAC temperatures certified markets was was of higher mitigated cost replacement in number years, elevated

the turnover knowledge our certain on looking operational members in our institutional has operations execute by team maintenance competitors acquire our Third, field mentioned markets. inefficiencies experienced I of some from personnel in resulting previously approaching ability and of to created to

level elevated team, continue Given us the in personnel to expected confront best-in-class of our is turnover this to short-term.

Phoenix $XX XXX delivery total and Southeast, Charlotte, markets Jacksonville, the AMH focus XXX of total from and we two and and our Atlanta, Western of including This newly national markets approximately were builder primary constructed Texas $XXX and these were for program. from acquisitions; a to in million added million. XX a Twenty our during investment XXX of investment Turning Seattle. Denver, for homes third homes the the includes homes of with Development quarter, on including

footprint. of all capital X,XXX new are total within $XXX Western track attractive We our deployment for investment on And across year aggregate opening We full opportunities of to scope approximately to Year-to-date achieve homes geographic $XXX a markets through development target we million. broadening of million. owned have we our remain our wholly or approximately activity continue existing see the channels. added

XX quarter, Moving onto of properties the proceeds. sold approximately million third net for $XX during dispositions, we

homes interest sale South closed One-off Columbia, other in efforts continue well. homes potential sales currently Our marketing of going are bulk as in and October, Carolina have a In sales. we bulk vacate. XXX

short even remain generate the operational portfolio great related three In and home several years. had summary, in disposition great to in storm term prospects and challenges, we and and $XXX the next long-term confident business. third worked quarter over We the a proceeds expect we we rental two solid a to of through a have team million $XXX single-family to as million

Now, I over Chris. will turn to the call

Chris Lau

summary Thanks, Jack. our begin results. Starting a with operating I'll of brief off,

XX third million attributable XXXX. $XX.X to $X.XX of of On income million net XXXX diluted per to FFO third continued $X.X $XX.X over we in per For Same-Home the of share share of of of accretive of third per for generated the FFO $XX.X share XXXX, same quarter from million quarter for was the unit the the quarter to or million compares growth per year. a FFO of our flow compared FFO X.X% as for as FFO million per adjusted for our unit, share The the diluted XXXX. per third of $X.XX unit Adjusted attributable development activity quarter and net $X.XX cents for to was acquisition to common in core to is quarter This or Also $XX.X income and and XXXX. XXXX third quarter was with the cash the XXXX, along last up share and or $X.XX FFO primarily continued in last FFO portfolio. growth months third basis, and shareholders FFO per third share compared for share. the $X.XX $XX.X core quarter million or quarter $X.XX unit

about much results. Next, Hurricanes. approximately in Florence third estimated I'll more In impact property. Carolinas included on particular, recent remain homes a originally quarter expenses this the physical provide majority the In quarter operations the you than $XXX,XXX. of to to made landfall but million less southeast quarter, $XXX,XXX to were and $XX.X our losses general, operations of Michael quarter end markets. experienced minor than the October is strength incur Atlanta representing minor homes the Same-Home fortunately with Panhandle, approximately our quarter's expect increase minor Continuing been subsequent the major Hurricane limited operations. in X.X%. third and be In XXXX, the exterior NOI XXXX, was per approximately $XXX.X Florida the $XXX,XXX this $XXX,XXX nature and The fourth major of costs remediation damages third our remediation Also, XXX however, did, of costs remediate included and has quarter's of forecasted homes to which capital these missed fewer considering Same-Home the in we with minor for was in expect the the in and for to of severe approximately our Southeast repairs five XXX Carolinas, financial portfolio and the relatively damaged expenditures in in color of million or $X after with quarter, bit cost damages to of of which to Same-Home an total Same-Home damages. quarter Hurricane on approximately in compares same maintenance in We

Our by X.X% capital revenues X.X% property and in in by capital increase X.X% after expenditures increase an increase Same-Home NOI core offsets growth core expenses driven in recurring was core expenditures. operating in

capital markets recent Next to turning and balance our activity. sheet

cash, reason our great Series preferred gross in of well the repayment and used senior November issued XXXX. September, maturity. transaction due sized in upcoming of exchangeable X.XX% million, capital H was our announced, of come fund previously proceeds preferred X.X which $XXX perpetual of a for leverage we execution million notes raising shares in us which stock, to piece to As fund The of we a

plus quarter of through to the remain our shares was forward, months, remain X.Xx. the and debt speaking to sheet, XX maximizing EBITDA strength At including of and balance you of the our In the metrics our flexibility adjusted optimizing EBITDA structure to debt bonds. the strategy, unsecured of capital trailing committed was that I strong. unsecured X.Xx end Going debt third adjusted net for we use preferred financing our remind an

of We $X.X X.X% average of years. a weighted with have XX of a weighted approximately billion maturity debt term total interest rate and to average

facility are our ongoing revolving fund we credit annual our from to growth recycled of well Our program objectives. fully million with and undrawn approximately $XXX flow and retainer million $XXX remains coupled capital disposition positioned cash

discussed our modest likely to into you investor operational revenues are updates translated our like When we would range that that midpoint our supplemental. with previously additional of guidance average disruption expectation quarter a some full updated below activity. I leasing Finally, core of to that XX guidance revisions and occupied presentation, the trending of year Page you our on third September growth Jeff days provide was our how on color hurricane Same-Home were as have detailed the in result

as have our quarter days guidance slowdown lowered Now in leasing light of to the the of our average result communicated expected recent fourth of of the end we personnel markets in in midpoint ranges. turnover, certain a previously growth occupied core bottom revenues

year Specifically, revised to XX.XX% core XX.XX% range to our full revised X.XX%. has to to occupied growth been revenues and days percentage X.XX% average has been

costs previously both expect costs range be the now to of remediation turnover communicated our Michael, previously communicated our now we expect be range end X%. including expenses, also turn, operating to onto full-year for growth expense $X,XXX. core Moving of of $X,XXX we year at to CapEx upper In to upper and X% property Florence of at Hurricane R&M full property end the per and

space our and core to together revised bullishness we after you operating revenue the a continued affirmed X.X% range the end call single as tying of opened revised property expenses, I to core family quick our your rental business we X.X%. core whole. expenditures before growth capital Finally, And upper our surrounding like our reminder NOI both range in growth to with share have on would to for questions, a

even strengthen reason towards rising asset in our with single-family further coupled continue if rentalship shared have support to and fundamentals the ownership Dave will home shifting believe has consumer been rentals As we remarks, of the demand to not class. preferences you demand with his that never stronger for every costs

to a ahead. to continue long still the short how we'll questions. about term Additionally, our as long operational years opportunities a open business. optimize of nearly the we all have call we operations Operator? we think trajectory And that amount operate runway now remind with we to longer your a And see come tremendous you way of we time, but our that, in ahead, we've still optimizing our in facets

Operator

we Thank At you. Thank question-and-answer [Operator a conduction time, this Instructions] you. be session. will

from Our Nick with your Citigroup. first comes line with the of question. Joseph question proceed Please

Nick Joseph

you. Thank

impact the rates for for single think on family demand higher HPA going the rentals. you affordability mentioned You of benefits impact How do the on and mortgage about forward?

Dave Singelyn

and rising Yeah, I period a I to get an think of of inflation interest lead will probably to a demand think track. HPA for period down going for time. be over does it new for than homes, it past, it but slow short also back more time typically flat impact HPA is short seen the But probably on in time we've will it on if have rates

Nick Joseph

of the And rates, the additional and then Thanks. capital repurchases? versus stocks deployment, share what's just recent in cap valuation terms attractive acquisition appetite your for given underperformance

Dave Singelyn

place, have from they given time we and we're yes, based it bit that will And opportunistically. that it we at the we prices programs any on in evaluate are Well, a time. are so little used are where to repurchase program share aware And lower a time in we have place. down aware

So to saying I'm use in tools or using it it we've it, I'm it tool to is but the of from time that not and use going one that used we not we time. that do to is not going are a – the past

Nick Joseph

Thanks.

Operator

of of question line next Sanabria proceed America with Lynch. Our Merrill your the with Bank Please Juan comes from question.

Juan Sanabria

was obviously pressure on It picking market job could hoping go to people. forward here, just wage finally comment seems you Hi, keep up bit cost tough little morning. is a trends. I a good like

norms. storms more new the may weather costs. argue We turnover more You've had HVAC probably seen some and/or issues. I'd And hotter is have

major XXXX as look do to start how buckets? the growth towards across we it So cost think you about

Chris Lau

Jack, This opine because expertise, the summer that's – the hottest on is but ever but weather. this Yeah, I year was Texas. I think in not my second can't

properties have So – happen of to lot and there. we a

as affect costs So But as that I we us. far definitely think did it in see wage general, pressure.

to compensation what We best constantly what – people. would and evaluating be are our structure retain

rental platform in they as where got quite think new And business, come the home people number Zillow they're a only we're people. that rehabbing business, a selling business also growing but but I and that this people of competition them for a Redfin. some not the has in does aren't has for competing through homes our in others are in of now

probably more than we others. competition have So

Juan Sanabria

then And some the dispositions private some And to to talked the next that you've there? transaction about on HPA just XX potentially side conversely, maybe up Okay. speed looking monetize months? are the What's given your of any to peers intention appetite slow down your portfolios. XX may over

Chris Lau

our program. along continuing we're Well,

they're We haven't haven't in homes we occupied dispositions. bulk really market for and we We basically sale for it once seen the but one-off vacant when they a sale, become retail slowdown slowdown mark and seen a really whether and current demand continue there prices probably might in right is the strategy. I'm HPA away we'll sure thing, not – just in yet right along but be down think our I because a cutting we're slow just

Dave Singelyn

Juan, is this Dave.

have As but already in lumpy, little have didn't Jack third the bulk his a quarter, we've quarter, in remarks, closed in one now prepared on the in sales haven't seen the pipeline we of downside And bit in point, change our are a on process the right this number inventory. that are of going fourth prices indicated the to through due any bulk sale diligence. them any

So in that through pipeline. inventory about process talked we the still moving the of had we're the

Juan Sanabria

portfolios guys this the for you to appetite point. buy And at

Dave Singelyn

portfolio We're buyers. small deals at but price. large, right the from price the evaluating always a to At right willing we're relatively

Juan Sanabria

you. Thank

Dave Singelyn

Juan. Thanks,

Operator

Please is of question BTIG. questions. with the next Ryan Gilbert from your proceed line Our with

Ryan Gilbert

under both strengthening have side rental commentary and guys And strengthening would a homes. the like seems around at But we there like impacted it's affordability, real somewhat seasonality. a say the hurricanes, it thanks the single-family resale past potentially know – guess your the numbers, over October months, September seems appreciate like was and rent by sale it or And to extent affordability, Hi, appreciating driven that new couple demand normal the for in product. the and demand I by in would that being slowdown relatively looking that on I for but demand they're I lift be for for of seen seems it product. there

was the seasonal So Was – the expectations? demanded the relative you September progressed? patterns? any as to follow quarter stripping October out impact and typical of did in or improvement how it it see Or hurricanes, did deterioration

Dave Singelyn

September. exaggerated it's follows has seasonal a was of Definitely saw patterns we it but it patterns, September. deterioration October back kind seasonal for picked – but up and right in

example, September quarter an October. is as so we because, only X,XXX X,XXX in and I August always and and the December. So, our think in fourth to X,XXX November or leased in backup slowest especially homes And quarter

and about So not number – effect space. calls big a there, down take of storms. optimistic It you slows it's of your for for in phone very we're makes and turn which homes the just number when The offline we're And just the rent times, people or ready the slower. are you reposition it's your as first homes them slows that it's fourth absorb absorb the in season – but ready quarter. the that I'm down, in of for just quarter, quarter it impact to in will rest really hard fourth the the rent confident makes some that leasing then

Ryan Gilbert

participating change selling then national been in from Okay, third Thank of party interested past understood. who there the in your your builders demand And homes couple over builder has or you. program? in months any are

Dave Singelyn

seems more that willing we us were they’re It for. like the give discounts to asking

Ryan Gilbert

you. Thank great. Okay,

Operator

next comes your Please with line of Jason the with proceed questions. question Green from Your Evercore.

Jason Green

Good morning.

that the of that the you and coming a capital short-term mentioned the problem? term the confidence labor turnover was a what of guys problem previously I not large curious issues And nature. amount in into longer this this personnel just is short and tight space, market term are You light in gives

Dave Singelyn

systemic is to a Well, or I a think issue. I a going it's think, issue. me year two Long-term is we're a pressures. short-term to face systemic half. and don't to year In continue

typically think really And we've people. of people. had to going good don't retention our think we're I have problems key retaining I

get great just I for like working is and occasionally the people think a work to outbid we this place here. people It's

Jason Green

I time you like an you level. coming a willing to more for going hire you we're employees? for guess Are on personnel people? maintenance moving that to forward? that if pay should think and guys? and institutional field of period in extended And kind changes what forward guys say of the to about how lot more to going lot changes What Or more are of a Kind we pay moving

Dave Singelyn

I one in think evaluate compensation went of the example. I'll one and leaders we're going an but to he to – Indianapolis, of have give our We his structure leave recruited just whole then that team. you area, team and had

turn up and ended we for of have about a we on Indianapolis period we've got backed occupancy. a actually in We so up better a think month. And rehired. We now with team no people

So change it's not all is bad, sometimes good.

Jason Green

the Or and during it occupancy Is the and bit so And less the is a understand little you're last have homes guys you better. driving taking question have guess to down? that's that turnover average that days exactly me, losing causing R&M and on less then jump care – is Who just it it quarter? up the for I people fact of leasing? were I occupancy vacant so that's the that the

Dave Singelyn

point. this at people turn the principally It's

Jason Green

Okay, great. Thank you.

Operator

next question Haendel the of is line St. The from

Please Juste questions. your with with proceed Mizuho.

Haendel St. Juste

good Hey, morning.

Dave Singelyn

morning, Good Haendel.

Haendel St. Juste

I million you I development homes. valuation $XX JV. home A first the couple the I worth of – of said curious southeast am the of new think with questions. guess on

the to JV. ceding You're

expectations, your JV? I targeted exclusive the what new anything So It JV? you the applying is am of to homes. IRR to tell those about is yields curious JV JV that – else partner then type perhaps of could And region, your value or life us

Dave Singelyn

we lot in putting at XX%. of Haendel. some just to be the fee. questions of $XXX a putting plus seeded five a to land to are are We with was there, million. And remember cost other seven on We're construction principally general we starting these ceding joint questions. the is years. it venture that development Haendel, expect XX%. homes the any don't There They're I The in live in process.

is was so cost they in indicated, as but our there all were cost at plus And there but were not a carrying transferred – homes, some fee completed substantial. our and

Haendel St. Juste

Got return that Do got on you expectations anything it. have any you or targeted front can it, share?

Dave Singelyn

JV Yes, the on thing is and JV also or a the it's really going remind just I input you institutional be typical is small levered it's It's with into a to very, the institutional would deal. But a to some very back-end. done promote process. confidence the get

Haendel St. Juste

Okay. portfolio pricing on of you IRR to embedded on any then from on harvest? homes indicated. looking you bulk you're to And And or perhaps mini the Curious type – gains were that? or what portfolio, seeing the then interest comment maybe you're

Dave Singelyn

or Are what disposing of buying. you talking what we're we’re

Haendel St. Juste

Okay.

Dave Singelyn

the for rent market. Okay. depends and Well it we've primarily targeting or disposition. much HPA on who are the we're There's those had ones certain growth markets that have not had that

not huge but So huge I a Las Vegas, expect mean, there's gain, have saw gain. – if some gains, level don't of selling I it's South Columbia, I Carolina I'd

Haendel St. Juste

you perhaps just about expense here front? are peaking Should next sense the industry's is – the the on overall my backdrop of thinking pressure platform, we on thinking Dave, how the expenses lot inflation in guess for somewhat the favorable here. a continue inflection maybe XX% terms a – we for margins range. I in the this Clearly, question year? Okay. year And see then get I challenge. positive expense should bigger less guess next guess lifecycle. were where the I perhaps the the do thinking be in in this of then And are you space for business outlined perhaps of a that you your the we operations But that the could demand, XX%, to more picture for we on be

Dave Singelyn

is going of that believe as is the remarks there demand story a No, and potential were always colors. exposed of a still think well to not this in do lot business I linear. as the prepared the the I margin couple of be prior that in side

the over term, seeing next strong. step, but be the very this going revenue some the months it's equation – longer to we’ll of very, that in and of potential some And the side of is be many

accretive On there there's again, are the going and business, the long-term, than in this. that acquire we're assets through this to one, growing some is better be experiencing. years six our this things even expense And and we there development in the potential in we're today potential are line. still to that in on confident business. ability that we're It’s expenses to but the are future margin into the side, year still – early also the program bottom But we're

we're on so overall story. bullish very still the And

Chris Lau

that I Haendel. And to add would

Our resilient kick eventually program floor will in.

haven't We we're also we've maintenance down ultimately should put that – many the forgetting but line, rents resistant up. push about that in, and new it houses turns procedures are push cause with inflation, including expense that had that but our in building where should putting inflation

So, I down less I some inflation… inflation things are think than think probably the cost mitigate but of there costs, we'll see some still will that

Haendel St. Juste

see remain like year, year? I – trend, it but directionally expecting Okay. sounds some expense overall There won't it in much relief all the above will it we be could expense But inflation some the there not this like still number sounds you year. but recent together, just like they sounds next front guess the next on benefits, putting positive too

Dave Singelyn

coming the some the into up. we leased did of Well, XXXX the year keep quarter year costs in first inventory two accelerated there that get mind from to this Haendel in have just

that as there, some but some of Jack the well. will So there there has you'll see is referred pressures cost be to capability

So, it is both.

Haendel St. Juste

thank Okay, you.

Operator

from your with the Please The Jade with line Rahmani next KBW. proceed is question questions. of

Ryan Tomasello

for Jade is questions. This thanks afternoon. for the and taking Ryan on actually Tomasello Good

Now had…. that you’ve

Dave Singelyn

Ryan. Hi,

Ryan Tomasello

Hi, guys.

Now if quantify side. the built-to-rent out but the of yield quarters market. in you into can few you've quantified per you're products cost the I you average numbers just in maybe had we of terms Can a the on expense wondering more the and that dig the home? difference seeing turn target know benefit, R&M the

Dave Singelyn

because, too Yes, the first And are in about homes XX months. the it's XX early our warranty. is year to built-to-rent under oldest

this early at part that pattern. nothing almost point but might was that leased total maintenance for it see you're of too in turned, houses turn really the and a be So it's minor then it's anything to those but costs, –

Ryan Tomasello

you those housing to buy Okay. sale any percentage move markets And pronounced? constraints perhaps of constraints have seen in and are more for supply in affordability, noticeable regarding change where the outs on the

Dave Singelyn

still Again, that's early. one – it's – at too houses, I it of out We people was XX%. for think point our reason our it but biggest moving

now think buy our are go someone it's of house. XX% closer I outs for move a to to

it's So maybe slightly. dropped

Ryan Tomasello

downwards. like the for the year-to-date, has trended turnover it overall looks fact in portfolio It

reasonable accelerating? be continues year that that affordability it would constraints assume trend that are given these next to into So

Dave Singelyn

been optimistic it us well have who for number in I'm with lower been growing four to years will have years. that that the over substantially we years that people for have been that as a rate one and for as is homes in of tenants our than move reason have out those four two

higher think retention. So as gradually our we’ll base matures, see a tenant I

Ryan Tomasello

thanks. Great,

Operator

with Rich of line question is Morgan Stanley. from the your next proceed questions. Hill Please The with

Rich Hill

to wanted everyone. Hey, to maybe come prior and turnover responded the a of question. good back what in personnel some was maybe cost morning to I

I said you maybe competition think had had and you more you others buying. I than mentioned

I rental portfolio has about competition you where are specifically business? more single-family or position given broadly suggesting the think you’re speaking your your

Dave Singelyn

you much as than at after faster just go knowledge that maybe do, per primarily would but look has people speaking I they’d as about we I'm home home as look business, don't that much us know, cost for if probably much as else. have go And single-family our at think it Invitation And us but anybody I institutional anybody. single-family, not probably we the as maintenance, Homes rental having as business. after

Rich Hill

the do got know you longer pressures in time? do of And was this said other think those it, you think yeah… period it. but a I pressures over – said think you call over I you can So near-term, persist words, Got do it those buyings,

Dave Singelyn

this Rich, So, Dave.

people most more bit they're recently, a that they're building fact that space with short-term levels – revert single-family, the come people we're always in farther year, what space, not road looking initial think building have so down number initial have will add at or a of normalized And area. into out they to sure, of the months, a that's a systems. a better long-term we bit. that right have elevated and to problem systems, in of it larger whether companies our I little is for single knowledge. but And but six with little new And in there the seeing we is staffing. we're they that space exactly the more We've number little a back a three day The is we're impact more looking it building indicated bit a you not their levels. have Jack institutional from staffing. the than to single-family into I'm now. out one we the And this have once that's And knowledge going out recently as bit the a additional have at our months little the seen are done, rental here family their problem, entrants that companies is

Rich Hill

Got it, we've that? can am do when How the little think think products do are you costs? than different think traditional back it's this another are program, down a going a built-to-rent of your you model. thinking you rental? and do about maybe dense? before, talked way, to more certainly do that single-family bit the Said I your scalable Can you How about you drive thank And be? you. you And JV, supportive built-to-rent

Dave Singelyn

we the I – it's ways. – doing single it's wouldn't built-to-rent than different business a of are Well number say in other

XX some XXX. then XX lot lot also lots, are We’re and that we have XX XX, deals, lots, XX, deals, XX, buying one-off

be going the because were challenging So renting. to deals to at me for are a good lot us more little we XXX

system Our new a and complex development. one-offs an up larger apartment the renting is think the – current set like in almost for more marketing we to apartment have

we sure but So, resistance scattered the but the country maintenance single-family then I'm around the the there could homes similar. – pretty rent how is to some out product challenges, if XX,XXX across figure very I other out, than are we'll actual aspect figure this

I to maintain a all conditioners, that the efficient and the to more on air there same to it be more got got type just on manage the you’ve be unit the should will margin because efficient should things it think easier you've – same be manage. deals all XXX

Rich Hill

great. appreciate Thank that. guys. I Okay, you,

Operator

with is Please question the Next from Street line of proceed John Green with your question. Advisors. Pawlowski

John Pawlowski

your morning. but way. can demand. your mobile of and do it what tailwinds Jack, backdrop capture to matter excess sure I excess this if doesn't at there good And website your can't understand the Thanks, into capture this is platform plenty operating macro are understand heading firmly going app traffic year demand? – specifically are make understand I back, really up. macro operating said platform different I another hits you’re next

Jack Corrigan

keep we there's the think – in they prior best going I rents do? than prior year. people. expect I hope train year, not specifically am a did our we in we the But Are this improve. best a were get more I year, have the we No. We we we year-over-year so and up perfect last We try Well, We I to than to were continue hire every the What year. occupied can hurricane versus to improved are we'll more them. September yet? year markets. and were them better

John Pawlowski

you storm the happy the need I answer. is with navigate a mean, better so I portfolio like Jack markets. front operating and very $XX top own performance? Is quickly looking mean, the it's in this, growth to apartment-like billion board line your job growth. I

Jack Corrigan

just with growth. have don't we have reasonably top with mean, X.X% to I line effect on think leasing happy up were an so going it's through the I quarter. fourth all yes. We revenue growth, they're very the happy September, know. I same-home

pretty good. I think that's

Dave Singelyn

a said, is yes, team, and of It's lot of not lines. Board been lot operations lines. the that focused about there's on week options and discussion that line. Bryan and this And at some may But of go in Jack, into talk is the they're lot this Board be available, any about the not It's a Dave. The the of and looking with call. with total. all on – John top a that there was Hey to all issues various the was just the lot this a aware,

John Pawlowski

thank Okay, you.

Jack Corrigan

John. Thanks,

Operator

comes & next with your The Please questions. with of from Dennis question Zelman proceed Associates. the line McGill

Dennis McGill

Hello, you thank guys.

has of approach amounts bottom-up, the guidance, top-down, up? build you the initial to you years? year than do Is you not how your it have last heading numbers, both? it in but you walk process First or you were next think of into differently can XXXX with couple it specific question just setting guidance, about as or through so the or much And

Chris Lau

Jack is and then start Chris. Dennis, this supplement. I’ll will

an to we well. on informed best on the based looking going view we a about going from expenditures. property tenants As a between maintenance all ways. what in to what then is think and from going level course, then a basis, our look of portfolio rental valuation and that good and the take process is stab to cetera, a things then best a like to programs, really less look we what's local at on to et bottoms-up then assessment you bit on of expected perspective times both on a hard by fiscal expected our on at our down outs times And trends then move essentially rates, influence top-down starts lease turn homes, can at influence taxes and on we environment we it know we think from form property we're and what turn a It way macro educated roles and at days and build more take we’re the property and on imagine, kind there conditions market to that a with And both of perspective. from view rate things CapEx overall is what are in granularly property used markets, labor little as view view market take

evolving starts top-down, it a that process. I bottoms-up. but I say very Like also the ultimately So it's said, But it is process. robust built would it is from an

year, capturing continue constantly it to process And a six we're business, that process. better, gets that And to more more better is influence as over our year. inform robust gets improve time data each it and as and data, and but five this decision-making budgeting think and it are to each into very we'll We we well. using a years

Dave Singelyn

of while Yes a be a CFO and this specific there. much this roof year. this. parking building year. repair to office used would put I and I back more to lot was to industrial just on it this going going REIT, this say We're We're

is more law You the bottom, averages. budget of of up it this from

if office You that. detailed budgeting expect each do to But really spend money. the spend could you're that kind is was – of going per and for house company looking maintenance and up property at a average on with it's a the of last year, and at of portfolio wise, our range repairs to wise, what all in think management CapEx, anything, makes amount inflation trying and what this you level We sense. aging come

Dennis McGill

would anticipate type next weather are bit creating would that as those costs consider consider somewhat and more hurricanes And those those you if sort time from events buffer and have. the don't or won’t the outlook of just are you upside one of they assume a of that you a bend assumption costs the happen? of types start into unpredictable, year for Or and type

Dave Singelyn

of effects small. relatively the it. was in because the same-home Well, year out the excluded think the analysis we've We it past, I this included hurricanes of

whether I I actually of didn't it being consider, costs in self-insured. it the – Maintenance, a of the as at hurricane same-home. maintenance, So part costs don't including giving look at you're look even as

Dennis McGill

always been that’s fair. just has as the than also leasing like well. the impact and business that's think disruptive to activity sounds I cost But it more the

Dave Singelyn

where when. hard predict It to has, it's but and

Dennis McGill

Right.

to my hard more question knowing is only predict? would conservative consider being it is guess you I that So

Dave Singelyn

Yes, I being conservative. consider think we'll more

Dennis McGill

luck. Good guys. Thanks Okay.

Dave Singelyn

Thanks Dennis.

Operator

question. is the question Suisse. line with Douglas with from Harter next Crédit Please your Your of proceed

Douglas Harter

Thanks.

trending growth. areas, rental compare how the would of some and versus the October growth had in it in was highlighted markets, sort you've mean, of that other kind I rental know Just impacted I the hurricane kind where guess you you on stripping personnel in of out but where troubles markets quarter? I of third

Dave Singelyn

quarter. typically leases on the our is rental and I seasonal, off rate growth fall new business we would, have in Yes in fourth a

So to be right year's I think will or favorable quarter, it and would in it line. I slightly compare fourth last

Douglas Harter

Great, thank you.

Jack Corrigan

Thanks Doug.

Operator

final Would remarks? concludes any you. management Thank question-and-answer you. Thank This our make session.

you concluded. participating Our has Thank conference for today.

You day. have now lines disconnect may your this a wonderful and time at

American Homes 4 Rent (AMH) 2 Nov 182018 Q3 Earnings call transcript