AMH - Earnings call transcript Q4 2019

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Operator

Greetings, and welcome to the American Homes 4 Rent Fourth Quarter and Full Year 2019 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.

It is now my pleasure to introduce your host, Stephanie Heim. ahead. go Please

Stephanie Heim

Chief you of and Thank here us our Lau, Bryan for with Investment Corrigan, Good and Homes Officer, year for X XXXX quarter Chris Smith, Officer; Executive full Singelyn, Financial I'm Officer; earnings fourth Jack David Chief Officer morning. Chief Chief joining Operating American conference today call. Rent.

this to statements conference materially these statements. call in may fact statements. All other At that statements to this included are are the that to projected include a risks call that cause in outset, forward-looking statements number differ advise you actual results those I and historical than need could of subject from forward-looking uncertainties of

future our no described information, and update of results press or any releases and only with statements XXXX. filings new our We are assume events obligation a result adversely risks These factors and that in in other SEC. February otherwise. of XX, future as could forward-looking speak as to All the today, statements forward-looking whether revise business affect or our

with non-GAAP A GAAP earnings release. providing included in the call to financial our press are measures on reconciliation this we is

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

call can these our at on conference webcast website well documents of as as replay SEC You this find audio reports and the www.americanhomesXrent.com.

our will CEO, With Singelyn. call to David that, I turn over the

David Singelyn

our to recent the finally, for and seeing expectations first and the will related touch the I Stephanie, trends you, of everyone. results, my a Board. regarding and recap on addition industry, XXXX, on rental will our trustee home in an Thank morning, new objectives I we're update our discuss single-family provide In XXXX announcement growth this comments good our morning, then

American year fourth quarter a what a Rent. for XXXX strong represented to X Homes fantastic finish was The

and accretive four and growth, As operational and consistent about excellence, flexibility, financial superior we entered customer XXXX, strength objectives, we service. talked

highlight I'll against execution these our of objectives. each successful Now,

share growth adjusted operationally, results, First, generated X% industry-leading excellent we nearly margins. of core FFO in per the including strong EBITDA

growth development the side, on Second accelerated our program. we unique

team extensive pipeline of are fortress Third, of intact, this next the We to level land balance homebuilding the with experience, XXXX, in and the built take EBITDA to sheet year times. our to have debt a ended ready we adjusted a at remains X.X and net find

capital, institutional enter facility, million have XXXX, flow, we $XXX customer more JV. $XXX expect XXXX. residents undrawn a multiple of Google our to As we levels and finally, retain annual credit their to And our ratings and continues new survey than highest including fully a as sources of superior have hit in million other cash our improve service

XXXX perspective, strong rental rates, showings and great high supply. and was remained home. is enjoyed limited We year, just demand macro fundamentals a increased a per single-family From the but occupancies, beginning. it stable with rising rental available

levels of areas. areas are diversified our of of with These those We and new high are that are of majority where jobs many the and of characterized portfolio and cost pleased taxes. with higher precisely national cost the by favorable are extremely moving growth experiencing population employment from living households our living markets

average, growth more three housing. markets for within than times creating national population fact, our In demand rental is the is new which

homes high-quality of acquisition and be to part continue the solution traditional through program our will channels. development housing We by providing

Today, talk three Rent investment positioned expectations. American to channels. plans about is pursue growth on Moving uniquely growth its to X through Homes

homes; our program. buying second, of national and through channels through traditional relationships our lastly, with homebuilders; development our in-house through First, built-for-rent

our to investment channels ramp us up provide and significantly ability As to XXXX we three look beyond, pace. these the

is three years, we and sustainable growth to housing that control infrastructure development our Over long-term provides external cycles. flexibility created the past home through the all

us convinced assets, result, investment initial much our demonstrated best homes provides the success high than opportunity and in-house returns initially that development residents our us This larger our quality thought. is opportunity the on we fact, In prefer.

To to capital we and with, cash balance which and can sourcing make an strong years project. grade us We believe a sheet, for have necessary able is opportunity operations do AMH uniquely program require flows a this capital, the to to from investment several ready start to with confidence for delivering reasons. access multiple provides that commitments from multi-year development

provide to attractive of a new long-term take capital, options relationship well an In providing yesterday, high-quality a is capital as future these we by venture order as the JPMorgan future opportunities greater Asset joint with new to in advantage partner. additional This of Management. another investors exciting us advised and announced diversified of institutional source

development a markets, of one kind prior our of team our is personnel program XX with operating senior experienced led significant experience. of at by To-date, an homebuilding XX

for we pipeline the land During XXXX, doubled deliveries. providing our future us inventory

We at area. is build changer game for a starts big maintenance the attractive Before in that new the desire, rental community. I reduce amenities a development in an energy-efficient with and move materials It we on, have believe unique residents a the lead the let in with me housing home ability considerations our that attributes program. share market, industry few yield needs to Various costs. future housing the design home rental the of durable and you and and and this residents and want

XXXX share driver X%. demographics, great and at growth we looking only guidance economy driving ready and the to growth. is words, platform, for compelling we're Given core FFO future a of our opportunity industry-leading north This other surface. XXXX In we've with to the the scratched per in accelerate started our favorable investments the made we seat have our and firmly and to

national our Board, its moment Zaist traded publicly Board at new that take Homes, member Trustees. discuss homebuilder our recent of a behalf merged the I'd trustee. Matt regarding with peers. Board President, a recently announcement Finally, to of Executive our to to Lyon Matt Officer welcome like Chief of entire was On of and William a I the one

to experience in the the our of as strong our as we with to with reflects value. largest for experience well Board housing trustees relevant appointment developers of commitment United one our independent having our refreshing invaluable leading to expand Matt's perspectives. the shareholder and will and diverse area commitment our industry and further this his enhance as successfully be plans in-depth company important advance knowledge growth States, Matt's

with Governance eye of a a member Overall, of from Disney. role to development we a Investment managers, past Sustainability investment decades brings Board. Relations, Jay as estate Zaist have trustees large-scale the year two independent And Webb real brings three over creation the added experience new at keen value perspective experience. shareholder Investor but branded Chief Wendy in and and and Willoughby as experience complementary our Matt and leading and through investor executive for deep his operational nation's homebuilding Standards the brings leadership Board. of Accounting Officer one now, diverse

will With call to over that, Bryan. turn I now the

Bryan Smith

Dave. you, Thank

We experience. are consistent very resident the with our or full we year. exceeded quarter our our operational year met strong it to the pleased hard for where and work targets our our XXXX and is results, to execution, commitment fourth team's takes results Underpinning

resident by our our residents our This ratings. our responsive and on ability service, Due unique provide our in do. driven residents, directly survey customer of Google great focus results the to able way with because part to in engaging has as to see evidenced improvement things focus we're our satisfaction,

We resident as is our Homes establish as long-term key housing. are for we of of choice to the know proud satisfaction X that seek and the American success Rent to this rental brand strategy single-family

be our quarter, occupancy pool within the strong. to Same-Home For continued fourth

by percentage days occupied fourth quarter improved rent growth increased average Our basis in average by our to X% points XX.X% driving of year. when core to revenues X.X%, and a monthly last compared realized XX the

our which health track gives of metrics, us demand for market. in historical leading properties, the the perspective Beyond indicators these we also on

by In the per foot quarter, rent-ready year-over-year. increased property by measured traffic visits XX% fourth as

with core Same-Home by property of taxes increase net quarter Same-Home core were expense increasing the excluding On drove expenses X.X%. operating property the this X.X% income side, year-over-year Overall, expenses in fourth pool up up taxes were Operating property X.X%. in X.X%. a operating total

realized basis, XX-basis Same-Home improvement full increase of For X.X%. on percentage average X.X% in growth monthly point a drove revenue the our a and in rent our occupied average XXXX, year days a core

increased expenses up X.X% up range While the our X.X%, the our expectations core basis NOI beginning our were at property XX property which was the expectations. of of the by inside above X.X%, core was of taxes excluding or expenses our year. operating points importantly, Most midpoint

performance Occupancy was of line continued spreads of leasing XXXX. January top spreads and positive points XX occupied improved inline Our January basis XX.X% X.X%. average by strong blended Same-Home and days over of into leasing with

occupancy in in look and to As the to we improvement growth line we modest strong driven rate X.X% expect top rental growth. the by XXXX, sustained be to X.X% range, ahead

improvements inflation on call. to taxes, property labor excluding expenses, X.X%. in operating will expect reflects material additional X.X% we the provide side, by This execution. and later detail wage, expense the Chris On increase to offset

to As I ability superior were that we unscalable. mentioned our And a enhance our investment our extensive experience. was to platform, resident in remarks, to center to to industry strategy. it opening technology. our efficiently result creating be of previously continue resident mobile the experience deliver Initially, able an on we direct solutions is digital in apply thought And scale of focusing at by my a is the

improve self-service communication will and solutions. We

to of optimize Further, us listening allows while and analytics, want. residents data use to our platform expanded our our what

our residents AMH prospects the Homes. driven and from In of development fact, has layouts design and feedback

We perspective. to that match from value are resident maintenance able engineer and closely efficient preferences homes a are

community, such optimal in types the of and the five down and of the in of both lower garbage like three, the to analytics as appliances bedroom decisions all location the as decisions high-level level our homes well as Our way disposals. four selection mix drive horsepower ideal features

which tenant premium Steele and our data-driven the Homes. A homes at approach. a XX from in The to using neighboring Forest leased traditionally this is was XX% community this example acquired of were Atlanta, perfect designed ground days up our faster,

additions just has of evolving the identified portfolio. market upgrades. proven pay have willingness Many opportunities is this such renovations our in rapidly in our property one where analytics to of the existing kitchen platform. CapEx bedroom shows our major a enhancing our neighborhoods example, premium potential a as for Further, are it and homes While

will certain of drive quantitative completed For which through returns retention. fully we results resident we kitchen, These on experience, XX% XX%. example, that flooring expect higher Houston drove to don't the neighborhoods, reflect benefit investment additional the and in in bathroom incremental improvement upgrades

Including way yet hard program enhancing for these $XX the years capital plan us in growth. it expect this time, incremental approximately expenditures, to our into flooring, we and Over leverage expand drive million multi-family we surface have industry are to the year. for invest another million to with benefit we $XX believe reap which property to CapEx to targeted

recycle to reviews detailed Strategic us candidates. better process, our asset capital asset pruning opportunities disposition management with Finally, into of returns. appropriate our drive portfolio our long-term identifying including allows

the $XXX brought fourth homes we approximately XXXX quarter, XXX million, for million. disposition volume $XX to homes sold During which year full our or X,XXX

we As had held XX, X,XXX of homes sale. for December

thrilled with continuing To close, I the opportunity I our of in to am XXXX. momentum throughout forward us, front look and

I over to turn Now, call Jack. will the

Jack Corrigan

morning, Thank good you, everyone. Brian, and

the stated was story Development big XXXX Dave As of AMH our program.

that and our traditional as up development entire to growth ramp our expect we from program, XXXX, our acquisition including platform. our continue builders We program acquisitions into external national

in for sellers call in perspective, X,XXX to of $X investing net XXXX. in in homes XXXX. homes to XXX plans of to Put XXXX be $XXX expect net we Our billion buyers this million approximately compared

expand we addition, to expect land our pipeline. continue In to

in of three primarily markets. the and years, program our the we a Western rolled Over our one tested kind markets platform, development in past and out Southeast selected have across

to built Our as finishes including floor and mind, other homes development well as residents. to with upgrades new desirable the our in plans, be known renter features long-term are resilient maintenance

that X build ability long-term growth. efficiently high to new are We to and Rent uniquely development believe assets, to costs. serve quality our and Homes create concentrate maintenance lower positioned is the With avenues pursue we a residents homes, for neighborhoods opening channel our American

widespread the This our have product announcement. evidenced tested the our venture acceptance results feedback. by is concept hired We resident gaining and we by talent, joint as and and are encouraged

approximately place grow to land with for holdings, continue We currently future lots pipeline development to have a expect land going forward. and we in X,XXX of pipeline this

opportunities acquisitions Our and in team to markets. land that activity. our This land ideal AMH existing experienced inventory us our footprint expand and us enables land high development data are additional proprietary growth analytics to of will future our within acquisition permit our strategically identify

Now moving investment to other on opportunities.

best traditional the is believe basis, the risk-adjusted program we opportunities a still While AMH is great return development in acquisition National investment our Builder on channels. there and

minimize to of While we portfolio. investment and inventory are will the in timing market our we to additions demand of our be on impact accelerating align assets activities, mindful with the other

for add our our designated the let to activity First, be Now, X,XXX homes sheet. remainder me you system. expect approximately balance our X,XXX update these, will we move-in-ready for and XXX investment and Of are between to XXXX, joint-ventures on expected on

Our approximately pipeline $XXX to be total on land investment for is million million of increases home sheet and between and additions to in billion, XXXX inventory $XXX construction representing process our balance of $X expected beyond. feed $XXX new and million and

of homes and our to and traditional the be to X,XXX our be we acquisition our $XXX between split X,XXX expect X,XXX in-house approximately million, investment of will X,XXX channels. and program With development National our add will balance between homes inventory, Builder to from which,

positioned that us favorable conditions believe excited we that front closing, X American these take and advantage three In is today's capital of in platform opportunity is are by extremely channels. of Homes deploying market Rent through with only to the the

call will Chris. to I Now, turn the over

Chris Lau

my today, briefly provide operating color venture sheet, new Thanks, update for I'll initial conclude guidance of review on our you and a our comments XXXX. In summary our on Jeff. joint balance our additional results, with

with our operating off Starting results.

fourth to prior shareholders over $X.XX attributable a or income prior common increase of we the quarter share FFO share. a unit generated representing of X% year. $X.XX $X.XX On an adjusted basis, XXXX, million diluted $XX.X per representing generated over FFO, FFO, and year net core X.X% increase For we of of

of an prior and FFO, we XXXX, which nearly $XX.X adjusted expectations X% shared year. we million $X.XX basis, common in core income also increase year a per share. shareholders over diluted generated X% full unit year, $X.XX of line increase our net On For was a with or of to nearly attributable prior over representing generated FFO FFO $X.XX representing

our to approximately continue of grade years. only interest to of had great shape, turning a average in our end the the rate the with X.X% of we space. balance we $X.X sheet XX.X term with weighted average At And balance investment weighted to total sheet, debt of year, remain and a billion maturity in

now times, to meaningful Our providing programs. XXXX X.X is of expanded with our times, comfortably X.X debt net debt to below capacity EBITDA adjusted support growth target leverage our internal us

million sources going into fully of facility $XXX new funding In terms and liquidity the year, credit revolving undrawn. our remains

million between disposition program We generating currently to annual flow capital million and approximately of our retained million recycled are $XXX expect $XXX of from XXXX. generate cash and strategic $XXX we in

fully key continues growth sheet utilize which XXXX, balance to be Our differentiator, plan enabling in us to to our uniquely a we accelerate external programs.

believe AMH even However, external our as Dave and growth from Jack mentioned earlier, especially Program is the larger. that Development we opportunity

time long-term access Management, And we pipeline opportunity. our that opportunity to we venture public more new development the we our of is excited are believe investors very with is of much that institutional can, our by announce and which to advised why expand joint and as now as growth Asset increasing to the capture to both private, JPMorgan capture development capital

future rental million venture by fees a additional interest start will on and a homes as focused for built with will upsizing, promotion interest. Development. $XXX operating the constructing be hold and ownership AMH with upside XX% new economic newly for JV and opportunity The AMH opportunity for

the structured the ventures to to monetize value promoted an partner, to provides unique initial need for reflecting construction sell with note, and efficient venture long-term interest properties, Development Of the operation AMH evergreen alignment creation process of us of the our a opportunity our without opportunity is with after assets. high-quality creating term the earn and use the and

on-balance deliveries XXXX with XXXX. to its own in beginning primarily, focused, will development XXXX, construction pipeline Throughout to the designed be incremental on development our be program and sheet venture cultivating

our in and new from excited our don't venture new incredibly partnership longer-term we growth earnings we are about expect XXXX, our out-sized Although, to its contribution profile. any benefit

And guidance finally, yesterday's information was I would in which supplemental XXXX like and detailed to introduce package. our release

annual color X%, assumption, we're over full an increase range prior to several For expecting with Supporting year $X.XX core expect XXXX, FFO you $X.XX, that share for midpoint on. representing I'll an At generate growth. $X.XX over more per acceleration unit. provide of we the our of in of year and between

properties our will rent. continued which monthly growth which expectations covered slight year-over-year similar occupancy strong and realized pool, X.X% include about is core Bryan as already X.X%, acceleration between a in XXXX for Same-Home to XXXX, we and on revenue growth expect Our XX,XXX in in average based

core XXXX. to expect expect we XXXX, operating X%, new and our other X.X% bottom between we in from a to growth to the properties to be reassessments all we X.X% in between property core Additionally, increase expense proportion Same-Home expense compared taxes, X% multiyear reform benefit growth and items Into line, expect to of line and represents smaller we NOI X.X% property driven X.X% Outside increase deceleration the a in by XXXX property property expect tax of undergoing which and Texas as a X.X%. taxes, X.X%. growth between

expect Additionally, we homes. our million of million AMH of in with this both developed inventory $XXX balance capital capital million invest of year, further this $XXX mentioned, take development year's total deployment billion homes and the pipeline programs to $X between between as investment Jack for expanded and representing acquisition $XXX and XXXX the our into and from

sheet. fund to capital From cash program and a perspective, from flow, our expect prior to combination from XXXX growth increase over reported between year's we and X% recycled expenses disposition of And a capacity leverage funding G&A finally, retained our this balance X% we through expect year.

the about management quickly questions, to team, I'd call excitement on reiterate your we the like of before XXXX. to open behalf And our

program development and to grade we've the sheet. and efficient the kind of balance platform our investment develop in hard investing industry-leading cultivate working been industry, the most AMH Over operating years, a build one our

paying in the all XXXX. firing Homes of power and demonstrate are off on now to investments cylinders we're American X excited Rent Our

and call our remarks that, that And Operator? questions. prepared now open concludes we'll to with your the

Operator

Please Instructions] first comes Evercore your [Operator from Our question with Green Jason state ISI. question.

Jason Green

as guys homes. really your to more deliver changed in deliver anything Has the working about one tried I to that work. and regards route guess, channels You you in homebuilders had previously, didn't homebuilders of it thinking talked seems like to Homes? it with

Jack Corrigan

This primary and and do ever the I I Builder that for expanding just is bit. to consistently AMH during the We're not down homes our XXXX because acquired floated recall We've thanks our Development. don't National Network so. don't. continue working. through We investment question. Jack, little a it was

David Singelyn

is Jason, Yes. Dave. this

couple me channels. always to it of as been, used one of add that. Jack Let just things said, consistently. It's a our We've

you have I program to think that development at in channels capital we're take and in have may huge. that this what of front see going we our path. But to heard as this opportunity time, us. quarter, is is all our is primary place through, us of to available opportunity the utilize advantage the And you the

Jason Green

acceleration pool to rate we trend the in are attributable Got And just read saw that much is that in that on we anything that or that just really the is really the a then, market seeing into? it. specific shouldn't quarter, on guys quarterly same-store the you

David Singelyn

take? to want you Bryan,

Bryan Smith

Yes, It's Bryan. hi, Jason.

think some I in you're seeing the on benefit execution of our improvements renewals.

rates, the at Our quarter. want in listening and the housing all-time context of really for high renewal improve it that and service. our the exceptional of and improved our ties we on we what did execution are retention residents providing as into only well. to renewal did improvements the Not rates really an Part experience,

that contributor main to I -- that think that improvement. the

Operator

Shirley from question. Bank of comes with question next Please state America. Wu Our your

Shirley Wu

my a Jason's follow-up first rate. your on So is questions on question

down new were were but the stronger, the renewals slightly So year-over-year. leases

are setting renewable you of come January to -- the -- XX%, blend has for that more seen continued you've strength new does up has and -- only leases seeing as up in that the the side also you're well? side or So, as from

Jack Corrigan

we've Moving in January, in the to renewal forward largely attributable improvement to the rates. -- January is improvement

it into on translate into a well. occupancy that Our too as position will But in rate from releasing growth strength is And side. rates year that came the were improvements what we expect of flat for we this January. in really XXXX shows

Shirley Wu

previous your -- to the So, are now to expenses just X.X% years on lower taxes than -- Texas. pivoting X.X%,

terms moving are as than slightly for should terms Just how we was higher historical of about line yours year, in last underwriting year. that curious and success your in we rate how stats think forward. was -- thinking And appeals, of about this next I'm upcoming tax

Chris Lau

it's Shirley, Yes. Chris. This actually,

benefit what tax for You're our tax multi-year of largely property just a reminder as markets XXXX, right. smaller about of in from range, from basis or low the reassessments a also then, out the and this which a reminder, as experiencing XXX expecting coming of from proportion Texas, saw properties of we points Expectation in is X% year, reform new is the coming some in XXXX. growth deceleration we're

still the of in. we're we'll out, I in health aggressively in But environment assessed its markets challenge economic a to markets But really number local appeals is and within in where were a they that the we values process. the increases values experiencing with which pointed are you as reflecting through strength XXXX, as expecting on year, seeing said, appropriate, think of states that of and the higher

And this And to not but the the an and you appeals here any year, appeals year, -- on we'll year us far in our XX,XXX expect of it year in wouldn't to us values to on I look how updated for in one the and through throughout property plays for process. it XX,XXX challenge out. early individual is monitoring different process too keep it north be is

Operator

you. Thank

with from question state comes Stanley. Please next Our your Rich Hill Morgan question.

Rich Hill

in on we quarter pretty Hey, a things guys. to two about And morning I talk and what wanted good guidance. good solid particular. congrats was thought

costs a spend, portfolio for should I'd look the in maybe a the you yields more of development talked or but of sort First the just past, upfront the on bit color what I equation? home love about mitigating of through developing spend say. little a have to walk completely like, benefits and the pumps? this much how I delaying know us development the all, of you projects, yield development Could CapEx or recognize CapEx I

Chris Lau

develop like yield pro are, yields come forma much home. with The that in traditional Yes. our we or

yield your including property as repairs pro you one. So, and the years, and reduced expenses, maintenance, heavily taxes have A getting year on in then, actually And normalized we're and five, look year first probably slightly more your XX, the the rents repairs reduced main expenses after year forma By anticipated to five we and is one. at then year the and what at at maintenance. XX.

them it's still we're maintenance building Although, better be because to resistant.

David Singelyn

Dave. Hey Rich, it's

own Let the couple me And yield. yield The equation. has but your for efficient to is more cost flow us add of project, cash total less. for things account, the to The it's got obviously invest. be you're it's much also is -- to building invest a that the two efficient to we the when components. -- able more to that got generate, much It's going the you're need a of you're investment way

sales There basically investment reduction price. the profit in marketing is no a and is cost. Development

therefore, but mind. think going it's to, the I is to into it's by even resident the our built just superior are it's lower, -- that. maintenance only translate equation going denominator So Not in desired cheaper, is, the residents yields. is cost far product permanent be the the here the than superior the But, with desirability because of bigger

Rich Hill

it. That's Got helpful, Dave.

into development yield? of is it, and there's just, of you're working put can it, is you sort through around -- there it that? or still that different is So is the go Or a parts there number a lot

David Singelyn

in Xs. yields, Well, on is maintenance including we're below repairs expenses and normalized -- initial

Rich Hill

it. Got

various And different that you're about of Okay, I want helpful. to talk some the in. regions

have pretty least by of Lake at and are instance, growth San numbers, We measure, Tampa. nice our in some looks that crunching like even City, the for you Antonio revenue like and had upticks it lagged Salt some and some markets maybe Nashville markets

Salt really So there to market actually owns that the specifically just about happening looks strong like only it talk you're us. maybe Lake there of because REIT SFR that Is City, one market? because in anything a

David Singelyn

is Dave. this Yes,

think, we improve, very something that our goes -- Bryan a have are one highlighted as and questions. we couple Before time I portfolio. not of that, those any important But of a is this on seeing and market. markets you we're answer diversified and reliant here, number detailed And on, is will

Nashville you, in very mentioned It's a tell I one you little Journal, job very, growth. bullish of I'm on of X Wall for And markets it it. Nashville, Street of lagger, as would one the the bit but Top a was --

cranes If market you've there that's for is long fantastic the be in a and in going everywhere to market us been the term.

Specifically, the the fourth have Bryan, in do Salt you performance on for City, that? Lake numbers quarter some

Bryan Smith

to of Lake in rehiring, the the of need really out. few it City moving there, fundamentals wonderful -- the market, from continuing that's a it's been companies for why some But and to the and for a drive of us. major one tech It rate Yes, Salt has that market, perspective. hopefully, strong investment. lot has very growth, really we're market all companies occupancy and a There's build that very the owners portfolio an is expanding The fundamentals you but perspective, are in again, and we're example. continued from fantastic. growth invest performed that And well

Rich Hill

portfolio, diversified your about get. completely mentioned which you Dave, And I

and about should markets we focus think we is the are on? any that that guide there As guide, that XXXX, driving specifically

David Singelyn

I diversification, grow. you think, markets. built does benefit we as have I many, That operation we're the accident -- that an No, is that's of portfolio not diversified of you standpoint, places platform, not you needle. is a from only not seeing you the move it standpoint, our have this at and it it's can one mean, in And that at being now. many from as going growth it that you When to the have that XX by right benefits look is, we look any are -- one the market

Operator

Haendel Our comes St. next question from

question. Mizuho. your state with Juste Please

Haendel St. Juste

So, me. a few questions from

you're it new with I on why is this of curious on the some control is then, Thanks. ceding guess, think, retaining your that, specific? of last fees, And program. be JPMorgan, First And region maybe to XX% as JV, just the more a then, part and recall was effectively institutionally, you the new your I I to on color or JV one JV, I'm JV, partner if that it would? front? more going a national Southeast-focused

David Singelyn

it's I'll Haendel, start, the exciting form can for capital of first Dave, the a us. I additional Chris on JV, JV, some But and then, morning. up. Good is Yes, of follow think the on specifics

about in looking interest. in a JV very So channels multiple XX% current very week have ownership control, been which discussion those we've this very channels. grateful -- building capital, intentional is have that I'm the we of yes, at The we

on correct that. You're

provisions, control are have have weigh in. is major etc. venture, at both events where some we on is of a meaning joint the that piece given very other parties decision-making we an joint to this it venture. that But a doesn't time unique venture the the evergreen have authority is that clip the assets are But be manager, There this sold,

JPMorgan to excited of very I'm So, one as partners. our have

well the I bring. think to capital they that as as table, bring a lot the they

Chris Lau

then, And Haendel, Chris. this is

that no, to With the and in and future there in there Just this geographies, we types ensure respect other to etc. venture as of some that place have venture. geographic think of levels no about are of to diversification allocating the project the mechanisms our are -- pipeline with restrictions said, sizes, your ventures appropriate projects terms questions, to in we

feed into we pipeline top will development Again, incremental, I going think venture, doing as we're on I be would this venture our the sheet. about on of that of an the that cultivating would to everything balance that kind reiterate strategy is it, the is

being to I there reasons, back terms the much that services fees, all of to streams specifics, on for etc. In obvious are the are would fees shouldn't but say for development, I the venture, comment management provided fee us probably competitive too

of our monetize sell our to would program. positive, of be some liquidate value that this to are is But promote I And inside Dave's that venture ability the crystallize the important. to really tremendous is fees the positive. frankly, upside is venture which terms point, it created by So, quite be unique portion of any scale which very, to again, going changing to able us reiterate assets, of is to a game that very then, capital, ability for the development our us aspect for to needing the without evergreen or really a the in unique is is fact of

Haendel St. Juste

then maybe comment. Okay, fair and enough. deployment that. external more on the And some capital Appreciate growth

million spend year. think, plan $XXX of this You development mentioned, for I

I think last higher that's a from $XXX bit than quarter. outlined million a

is driver of I'm balance dispositions is the in in a what sounds market then, of your you're and the sheet there as spend. I is? plan be. curious backup that And on transaction key disposition on what guess source and up, and So the curious development also funding the XXXX like for a seize-up using I'm about if is, previously XXXX, that comfortable your million if It what talked market? view front $XXX levering you need

you. fronts? on any comments two those just Thank So

David Singelyn

Dave. Haendel, Yes, it's

unpack Let that me see if I XX can questions. because like that's

an have $XXX in the billion. we XXXX, on million $X Let's thing to The start mean, between like sources. is with clear that the side, there make sources do program. is you're yes, I'd investment I one just and It's sure

And X.X our to and currently proceeds to portfolio. you ability is or a funding as retained going be in where that to flow, between at times the its our let of of EBITDA sales to cash tap place whether all our our is X.X it's be we this I'll $XXX year. as at ratio debt capital place, million. about sit mentioned, already That's Jack talk desired well guidance what times, what for market

very the X,XXX -- you in is as our pipeline to of the through. comfortable indicated, and three be We've And opportunity. ability able On we're you in there our to It's got fund but slight about a disposition through now, all to might homes right investment in dispositions, channels. Jack, it million XXXX three want all or increase all $XXX developments billion go between the is $X guidance. investment

Jack Corrigan

you the from Haendel, Yes, think $XXX that held was sales the disposition. amount dispositions, got the of homes for total proceeds I million where

now year, We we're million million expected year, this and $XXX million with $XXX last $XXX $XXX year. ended million up and expecting year. last this We

So we just a little it bit. loaded front

sell bulk them The sale. as $XXX in vacate, million unless other will homes come we a

vacate renewing. till wait sell homes or don't be them, they'll generally then when the so We know XXXX We could and XXXX. they stop

where, market fantastic. of confusion little the the disposition think that's And bit was. is a I maybe

of fast, them has fairly acquisition, there I but is homes and sell We're shrunk the think inventory for little up I has everybody it on pulls to available able bit. pushes think that. a that seen

David Singelyn

Haendel, or the another X,XXX to there, homes are about can do we not that the we indicated, two-thirds sell operator. is guidance $XXX of million homes of homes XXX as Jack sell it occupied unless

estimate the year. for is but that's timing there that little million, as of a So this our to $XXX clarity less

Haendel St. Juste

for ballpark development Got And of Is still home. think just Jack, clarify, here? it. for to a had about you cost per I the talked thinking think, quarter, to $XXX,XXX, be last the us I that cost briefly that. range Appreciate

Jack Corrigan

$XXX,XXX to is a good Yes, range. $XXX,XXX pretty

Operator

you. Thank

state question Goldman comes with your from next question. Our Please Sachs. Skidmore Rick

Rick Skidmore

morning. Good you. Thank

going Thank roughly fourth what than look the -- at path on back delivered can for number? through XXXX like the If a a quarter. development initial approximately through the more year that. to evenly that regards happened Is quarters you. And loaded? program, XXXX, with to that XXX back-end guide that in color getting looks to delivered, you do it right little or And the as you $XXX million. you Just XXXX, the bit looks I or X,XXX little then, homes think homes think give front just -- you over the how was

David Singelyn

XXXX, little This I'll and about take bit when then, -- you the let guidance the me About -- is take XXXX. Dave. for beginning.

higher is that three to X,XXX this enter the on significantly channels. deliver The homes. As difference XXXX clarity going into giving our the are, we year we the us last between than XXXX, year, XXXX land they ability homes X,XXX inventories talk through homes big and our are were about into

that channel, best do will pretty the The the The XXXX. than of to rental They'll the and of but we as half is not different try between majority season. into of that half can equalized be development second said, basically deliver With through all deliveries first we the do more it. last be year.

bit weighted little in I maybe did even more in a XXXX. a So, lot but than think the see second distribution you and you'll quarter, XXXX, third

yields we develop Today XXXX. ability The land quickly. to be more be a I our get And of other lot said, able XXXX, with land. availability itself appeared XXXX, to that have is as developed. more better developed into the better on when entered at there -- about lots the piece to and can now to vacant we versus land that had, acquire, which less the XXXX we year, time we clarity There's deliver you and land have

one when to million investment, land that of to $XXX to talked of mention, we said, thing With grow further. is that our just about a piece billion $X investment even inventory

higher because delivery be XXXX, a the land than So, key. at pace XXXX is will

Jack Corrigan

Yes, in one got where delivered the I'm sure quarter. you fourth other homes the not thing, XXX

have through We Program, added and our through Development. homes, new Builder XXX National XXX XXX AMH

Rick Skidmore

the those your ones And then, up of just homes leasing then and expect? Are relative to the are the new delivered also how that expectations? Thank you. you you're that on rent leasing And up? terms building, they in

Jack Corrigan

the we faster existing and construction on slightly expected our right inventory are costs rents turns, up better to than The be. than expected. They're are where leasing it we

Operator

question. with from comes your John question Green Street Advisors. Please next Our Pawlowski state

John Pawlowski

Dave, Board time. next changes you additional the the expect the for to over any Thanks year? do

David Singelyn

to hard say. that's John,

Trustee, of two in not on arena. But Board We were to have sure. Board, one the will what that additional time, it this the happens for looking complement in homebuilding we whether individual when and the or went evaluating I'm things, a potential out skills was be we XXXX, already the we XXXX for

Matt is yesterday his very He contribution addition. an valuable. in the Zaist was was and was And boardroom -- excellent it

we're to we're State entity in to Board the looking or two California need next or trust of The entity, you other a actually, know, is, will our for and we years. female an as a corporation but add another

happens I year that don't year, whether or know. So next this

John Pawlowski

Bryan, to which is an strong. view, Understood. the last same-store your Charlotte in on thoughts the wanted the occupancy has From quarters very terms has still of several market trend, average. Charlotte, the and very, I it rent And get in like outsider economy lagged versus

Vegas your structurally Phoenix Charlotte opinion, weaker market than bit like now? what a So in right makes or a

Bryan Smith

a Charlotte Yes, very is good market.

other is institutional you're is seeing I we've a new Charlotte. from and coming effect supply. seen a relatively amount there of competition there think At improvement nice high There development. into XXXX, is players, of what also in Charlotte, some lot the of reasonably

it to momentum be and for takes have while We good that growth there. a But absorbed. supply little

there. run, we've the before, economy As on very, over the mentioned long portfolio and very in other our Charlotte we're markets, bullish and

John Pawlowski

when in, good to to started darn hasn't of for up been I growth your last or supply, has steal in Why rent competitive Phoenix your Vegas few some so the try picked and launch competitors supply repurposing. guess, why haven't years?

Bryan Smith

growth supply those Is the in two markets? affecting the the why in is question, not occupancy

John Pawlowski

the in supply Yes. have good? been picking If really supply is Phoenix picking why Vegas up up isn't Charlotte, and when in results

Bryan Smith

the and not from same to exactly Yes. to the just demand the is that I really Vegas, BLM think tremendous But outpacing Vegas There's coming due the is fairly Charlotte. supply it's as supply in geography whereas housing constrained the Phoenix heavy amount well. in and the for in of California growth two -- markets, land case holdings. those

Operator

from with Please question. Hardik your state Associates. Our Zelman comes next Goel question &

Hardik Goel

actually I a couple. had

Even comes high. flow your to X.X% make the sense assume pool just X.X% -- to look get I get that in I'm said then at and to I the up. IPO, the growth coming on at same-store little, guidance. year's It's is of your to a to pretty me goal to your correct best if guidance, last of been the assume have revenue the down deceleration X.X% X.X%, if are so you're since And I wrong right, a a renewals through see I you probably that on now, that if On revenue they've X.X%. guidance, been that, lot

So, in closer coming to the I'm end. high

So can on that you me color why give is? some

Chris Lau

here. Chris it's Hardik, Sure.

color. with me Let some start

that proud revenue was on fact we I keep also that really XXXX different of various You're occupancy XXXX about we stabilized pick the you level XX portion of was below think that a picked basis though, of. we're mind about right, one a year, 'XX. to was improvement XXXX, and line, just would points strong the XXXX year-over-year up the simply piece up driving in or fact which from components, the over in was a that 'XX occupancy in a had one function if

revenue was X.X%. in were strong and at similar the expecting a and what growth you points, basis midpoint, If Still of healthy, at we're you see to strong XXXX which that is for to XXXX that normalize at XX growth. X.X%, very would very very level

Hardik Goel

homes to transcript, Got XXX That's If guys that will And just second second deliver the the I at it. XXX have I one. homes quarter of in Jack half a saying XXXX. helpful. look back you

going the next here in end And did quarter. of this this it's year, that you with today, X,XXX did what even coming more low you triple almost below you're telling there's year. -- be now homes, which us sit to homes the we XXX-or-so that As is is than

So, what wider? range gives am confidence more that guidance be that thinking achievable? you -- than wrong? volatility I Is Should this is we're about that there just

Jack Corrigan

is Thanks. the Jack. this Yes, Thanks question. for

to by deliver the days. of half was XXX which you of of little back lots As that burdened ready-to-build what basically Dave the can year XX within VDLs mentioned earlier, availability Vacant we bit is call the Lots, a lack Developed or days

through X,XXX we had homes field I we XXX were than that through Builder is to -- National about Program, been. XXX delivering they homes Then you program. not that's all the -- so, people the our homes, should maybe development acquisition more and three including our in-house and if guidance, about have were our at balance XXXX then program, XXX homes optimistic is look which had And channels, program, which some the we're development traditional

Hardik Goel

both on 'XX percentage on a me going was and on quickly, Because it higher there? And indulge the R&M 'XX same-store as it. pool. if Got revenue, really just than you'll of what's

Bryan Smith

the want back goes and increase specifically quarter. to you that quarter our into it that posted, to fourth the talk if Hardik, going evaluation we Yes, about fourth

traditionally in preserve was during, where season, slow lost the we objectives really, to occupancy of our One main the past. occupancy

And levers on couple had of different we pull to side. a leasing the

feel improving you of some program, occupancy. competitors of which we our looked commissions, third, our strategy example, increase by could it our employed drive or in introduce the do a to cosmetic and at homes. chose improvement could was For concession that, some helped institutional of a you We

XX really in half toward in of about ultimate to basis R&M it improvements due improve of managing to of an and increase work the We're homes. cash the pickup aesthetics landscaping paint incremental The was flow. the these points

So preserved that rate coming XXXX. it was good because program successful. it into put just us into and not liked really position I a

operating you our in the year. But more R&M, increase expectations it importantly, more to importantly, with in -- in our at the beginning and were expense expenses line the back if tie full in with year our increase right or property performance, both accepting taxes line of

Operator

KBW. Rahmani next Please comes state with Jade your question. from question Our

Jade Rahmani

expense, Thanks give at you rent growth I there in a be any maybe looked to in very and talk debt and occupancy you would that kind some could would back might precedents low gone bad much. expectations? of of I wondering, X% range. X% how moderate was and modest growth if modest would Have to about uptick that baseline occupancy pressuring perform rent to a recession? assume

David Singelyn

the some risk of have benefit in individual the on years of nation. XX a is average. basis The been national a not said for that the spread Yes, have where always Jade, having on a some basis. diversified had markets one the across seen benefit on a having diversified have range. history have it's over national entire It can't last looked, we occupancy in And that that has portfolio in Dave. be look is but And at because question. a on dips, that we've national portfolio, Thanks we back you rates the declined XX% if never the necessarily year rental market

And And know on of the in with have there, is we there we've I East yes, of companies the but right indicated, the states. bit across now, as exposure spread potential got residential of some exposure on entire some impacts concern Coast, the a some country. little you coastal the

and ability line maintain there. history rate that rates, us top on of and our the do tells even the having to there, occupancy our the grow fine so And we will

need with but that and the -- average our that, two are work to diversified little collection will tenants to there our you Again, evict be that's haven't household times. it's with, $XXX,XXX -- there not guidelines, on through is in and will bad us potentially than we a And we potentially. our portfolio. there does or as work work tell that a debts times the let to uptick fine our side, mean, yes, I cycle. On will But of be have the ability be five remind be small three the more is and But that to gone rent that is with and a income, me will general closer line our one our pay, tenants, history them we goal will them. more

Jade Rahmani

the the to Will what a going to than that also to pursuing leverage? build-to-rent different be big is venture, how were joint doing on you you Turning the And financial be using strategy the sheet? capital joint venture balance potential be? have does pool

David Singelyn

Yes, same it's the strategy. it's Dave development No, again. to be going

what at we've adequate to first However, leverage venture. range, sure capital -- our some in it joint $XXX And will as It we does $XXX have ability at look meet that to we out upsize, and goals in needs got and that going and investment build total. start the have point yes, it capital we look is to then the and fill balance our make up sheet. do our is,

Jade Rahmani

Do from in to there And what increasing you the would get stock anticipate common a a the lastly, time is then, growth. be expect common And dividend? question this you period steady year? investors dividend about over I stock lot growth dividend

David Singelyn

an from we $XXX are than is program of flow have discussion retaining our million growth operations. that we one the Dividend of is interesting $XXX cash that a more or discussion. benefits little And million on

And very our our value grow good opportunities shareholders. to enhancing which so, have portfolio, very, to is today, we the

a use the of program funds. So that reinvestment very good is

it's out and an as all pay aware order tied taxable are distributions aware, but to in losses, operating net by our it's we which for financial the your is partially than a footnotes to earnings sheltered You're are taxable retain obligation different that not in earning, statements. disclosed minimum significantly The book REIT to of is there your the level earnings. to us status,

Operator

time. and back Ladies the questions David gentlemen, closing this remarks. no turn I'll call to there are for Singelyn at further

David Singelyn

to want about XXXX. in we're Thank that just you, opportunities I To operator. excited reiterate close, our

Let fundamentals of development one-of-a-kind balance growth, the and remain give to investment-grade platform, me operating remind rental our cycles sheet, and you economic that our our ability very regardless the momentum and in. us best-in-class the strong, and program strong we're single-family continue that

Thank look Have day. morning, you to next for joining us this a to and forward talking good quarter. you

Operator

you All parties conference. discount. This Thanks. may a concludes great Have day. today's

American Homes 4 Rent (AMH) 28 Feb 202019 Q4 Earnings call transcript