AMH - Earnings call transcript Q1 2021

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Operator

Greetings, and welcome to the American Homes 4 Rent First Quarter 2021 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. At this time, I’d like to turn the call over to Anne McGuinness, Manager of Investor Relations. ahead. go Please

Anne McGuinness

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

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

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

David Singelyn

morning Demand that and we pleased Good us Anne. you Not a you, long for year-end this share was to joining strong I'm XXXX positive today. to thank Thank told you reported off and that ago, results especially of record start. the of on to considering success remain under and durability tailwind, housing factors. demand story. our be the continues momentum The when is continues. supply levels three central following at based to

managed more are Residents residents and appreciate First, single-family and residents past years. has value single-family the perception prospective professionally the changed much of proposition aware rentals over of XX rentals.

Class are automated with to A high that Our homes is navigate. and easy convenient to rental access quality leasing process a

of communities are a creating resident and positively homes the appeal market an appreciation less account their X% property management and superior in contribute demand. Our rising of our for delivering rental professionally to rental that platform, homes. character landlords currently neighborhoods. experience than newfound single-family that to exceptional Even market, increasing we through for local ever brings opportunities rental institutional managed that single-family And the stability on our is based

well X high quality short nearly if they quality More under school even American new meet in large schools. are providing part choosing located supply a current program, housing can housing demand. homes single-family by with to Rent rent afford recent buy. what solution with study Second, our is to to and needed is neighborhoods the development Mac of children to aged by million the margin. more by X of According Homes is supply Freddie homes Through a vibrant, U.S. homes is families

markets demand. many with strong growth single-family homes been Third, rental in Demand we has for years. rental for on the strong are rise

national that with employment to want population and are well the outpaces homes live Our people average. markets growth located where in

in in the the in Vegas East. demographics and and result, we Tampa these Salt And growth Phoenix, from to ranging exceptional a City markets expect As we're Lake to Las Charlotte favorable experiencing continue. West

We are tailwind. demand on capitalizing

remains while rental and collection. record growth rate XX%, strong Our record above high it we occupancy

to AMH quarter. provide our last details our Our told and commitment and program, strategy on builder delivery call. There continues Last includes acquisition Jack opportunities team improved earnings traditional the have more to development grow. AMH its Bryan quarter, on acquisition about are land three execute will plans I grow, that channel. you since national our their development and program pronged our

uptick And for Our acquisition inquires though opportunities. in land the we're year, it's an same. still remains strategy early in the seeing inbound

with of more such the year we range. lots end we to XX,XXX As low the our the expect near XX,XXX already year XX,XXX lots. to-date, pull Therefore, the top the of ending goal than can now of XXXX this at end end

our series flexible an yesterday, our balance growth. our our sheet focus recast Homes American later Rent call D recently includes and facility provide found from of We we shares to today's call. will to our notice component on underscores plans details support this growth. and Chris facility X credit redemption intensive ESG fuel provided of our external our existing This facility the continues to announced preferred Our of new And commitment that on ESG quarter. D additional later on series principles. size sustainability

plans I'm homes growth on Our industry high continuing position leadership growth of reflect plans we bullish and provide XXXX our by our on America. in quality for I'm and our impressive neighborhoods our as execution. to the enhance proud in growing team's future across

turn on Now, more details the to operations. for I'll Bryan over Bryan? call

Bryan Smith

to a start. Dave. great is XXXX you, Thank off

ageing, and where year. we for On in driving experiencing are homes the during and the our in shortages. families, getting the need Millennials highlighting continue time supply a preferences been their we dramatic consumer trends see single-family to demographic almost markets that we've growing demand same side, married, are shifts for a

XX% are And XXXX. wide, location quarter teams most our receive and an people they combined Additionally, flexibility rental have our to high housing quality office. the to increase execute appreciate to homes drive high the decisions our customer continue team. Together, level. in that more per in at make of first an importantly, property management to residents ready showings professional Portfolio closely of our from property service tied a rent trends the these

in efficiently demand insatiable homes markets. order turning are meet the to seemingly in our We

customer focus underscored Additionally, service, brand as our our preferred and experience reputation relentless resident landlord. has on the best-in-class the

X.X% to growth continued record ideally of this desirable X.X% located teams. markets, days growth the our first the into translate growth. XX%. in which and exceptional highly demand and pricing occupied And rate to running outstanding quarter, homes And an growth rate to excellent from above capture lease that and our characterized ability the in renewal growth are remained average new strong it are Turning job overall results execution with rental This for stay rate of our field rate of to rate to quarter. XX% accelerate attributable by is growth population fact home

the collections our base to On front, revenue resilient. continues be

and quarters, these of with team's continue is pandemic as of to a uncertainty, current environment. efforts a regulatory residents. Our collection Despite consistent testament levels a work trends, the collections result particularly which remain our tireless with past to carry level

improved our home In X.X%. blends and X.XX%. to in our the and for momentum strong to in of to XX was April, month on our by to May, core work. basis This revenue XX% continued over and their of results into primarily points respectively, and guidance full rate team Looking increased would dedication which thank I momentum stay heading reflects and average year we've new Stay record X% and were occupancy increase XX.X% the breaking rate Because a growth like home our closing, growth midpoint of view renewal our lease continued rate the days hard occupied and growth. occupancy. for

We are deliver well operating exceptional to season. this results leasing busy as we positioned enter spring

Now over I will to Jack. turn the call

Jack Corrigan

Thank Bryan you, good everyone. and morning

the our other experienced continuing Most top X growth by importantly, rental program to predicatively deliver our shortage for rent, portfolio than expansion housing As the grow and American program on growth provides growing future. and AMH positions provides for our channel. production strategic us a housing and ongoing migration practices growth satisfy our teams efficiently. accretively and demand consistently for remains that a base of and to predictable brought development Homes home address changing uniquely priority and growth for help national more foreseeable the population This anchors

in flexibility and to diversified opportunities perspective, conditions. development ability adaptive quickly. and market From land program AMH unique and our project flexible shoot its our land positions to size our Additionally, to footprint be a sharp is us

as Dave today demonstrate calls As we mentioned, our meeting land with are market built continue success for more receiving at in to demand. home. suitable inbound for rent opportunities We're

with XX,XXX than end With owned the to and goal XX,XXX of lives by the more XX,XXX of controlled lots year. of controlling the the pipeline are current

perspective, cadence delivery development laying the expected four step one To foundation to translates an annual into growth. homes X,XXX are foundation cadence it priority for we the further, average a schedule. get our our using time year pricing production XXXX. sustained take for long-term to This trades our timeline. allows to five We of From us leverage X,XXX predictable and relationships to by with labor

in the lumber we've to has rates, range. X% our Although consistent yield underwriting a rising been a the increase maintain modest With to in the represents X% our homes X% tripled, to nearly on home cost of in build rental cost with range. delivered able

builder quarter. in outlined national XXXX with traditional our channels, in and For last remain we expectations we a guidance line

acquisition on portfolio. highly However, investment we're to continue professionals regarding to our our skilled attractive, of proud increased finally, In am cultivate XXXX. execution far our I deliver our assets buy development our so year, And outlook summary, team within our box. high and see opportunities the in beginning to remains for and plan of track, quality

a and take optimistic And can best-in-class to deliver advantage We we program, growth the kind into accretive we supported continue the development differentiation our of sustain a from future. that AMH one of by remain balance.

the to call will over I Now Chris. turn

Chris Lau

I'll in everyone. morning, three areas comments good today. and Jack Thanks, cover my

our brief review of quarterly a results. First,

generated which into XXX property drag translating bad revenue core by COVID higher in a with offset record portfolio, core X.X% X% of we $X.XX basis FFO XX and growth Underlying impressively Starting our home or trends breaking our with core and we by units as growth points summary related discussed, performance results, of basis and and benefited on vote to expenses course, this growth continuation rental drove Second, into in over with operating and net updates quarter activity. common share. income prior X.X% capital of $XX.X XXXX a of to our X.X% the quarter strength And an over was for sheet unit sharing adjusted guidance. strong of sharing $X.XX recorded diluted prior the year million representing of an growth partially of this translated debt, third, our an which contribution update overall NOI per where attributable was in increase demand for shareholders revenues, year. balance the single recent markets another fees the X% representing $X.XX, X%. points off further Coupled growth. strong our Bryan of

However, been bad growth normalizing for core continued to which pandemic would same COVID related X%. over debts NOI have run norms, our home consistent to

quarter, which Turning were from our wholly-owned right program. adding of to for a growth AMH portfolio XXX in external portfolios joint of programs our on XXX venture activity track, the homes our development to total delivered our executed

quarter, properties XXX development homes from Specifically $XXX during total portfolio during $XX we on for homes quarter, side, acquisition channels. of our for XXX was disposition total added generating sold the million, our the proceeds homes approximately AMH XXX a and investment of million. we which program, of from wholly-owned the our And XXX net comprised

our of shares end, markets activity. net net quarter update adjusted sheet. of X.X times capital debt to balance our on including a to which to billion adjusted to further maturity yesterday And facility topic our increases remains remainder score, and evening, our debt to E quarter, announced To of further as can we best-in-class to our demonstrates borrowing credit the lowers preferred times. we sound quarter. credit April to our a capacity tied our extends in an throughout credit Series sustainability And facility feature second our that shape to to EBITDA the enhancement like on to our the facility, our balance costs lower borrowing principles. XXXX. already with closed ESG great includes of commitment which an credit our the shares turn facility and recast of to revolving a cost a ESG I'd balance capital Next, After become $X.XX linked date reduce end D cost intent sheet EBITDA our recent X proudly preferred the in of and sheet existing And callable optimizing

The fund cost approximately progress E market the X.X%. Our and tremendous a of past redemption great of Series an current combined our we will capital refinancing anticipate including unsecured of forms to D we've FFO, the of that preferred have which preferred used ultimately E example been full year $XXX shares D the coupon at years. and yesterday's will capital our capital, When of to guidance were pricing least like shares, And Series core preferred for a the conditions. bonds, million has few preferred given depend of provides over outlined of of average revisions of current shares and on the on all compared to mix and one nearly But penny value have equity incorporated share ranges. of XXXX the positive common our five made into the I'd revised guidance, in that to topic release. highlight benefits another

guidance trends has never stronger. contemplated robust increased the activity a for basis XX core April, into is And quarter original even revenue demand environment, consideration activity NOI and strong breaking our stronger. first growth basis covered our full by home rentals performance proven be year. record been XX As midpoints year, core into X% points by and the single-family Taking Bryan heading although to actual and the our to to for full leasing expectation our our expectations X.XX% we've points of already growth same leasing for

needs. per our Additionally, thank call open teams. to non-same and contribution taking our expectations your open continue to increased we our off work same represents And our an now robust across portfolio, part under will another of to X.X%. and is XXXX growth, X your Rent start produce the dedication, the like $X.XX.At or our I'd before refinancing call into you full Operator? $X.XX from per the to $X.XX NOI forward combined we not share for do midpoint of but from massively year-over-year we the shares our consideration the expectations big one leasing looking solution by anticipated And when home to home housing redemption, FFO expect impressive year FFO between industry And earnings full that benefit year country's of leading for penny share both share environments portfolios. stronger with we XXXX XXXX preferred growth entire also share midpoint this and per of reflect have reiterate hard finally, questions. become American the questions, excitement great with a to to we'll your only the Homes and because that, of

Operator

answer this Thank and the you. time, In session. you Instructions]. interest question follow At we a we'll up. one time, you. keep one to [Operator and conducting of Thank each that be question ask

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

Nick Joseph

that you Thanks. trend the expecting homes turn? you touch season? can Maybe released with maybe How during starting are base peak just occupancy operations? leasing to to And you on

Bryan Smith

Hi, Nick the occupancy. fantastic We're Bryan. This for is thanks seeing question.

year that this position. rates had we've see kind demand of kind even occupancy the a And near-term, execute that the uptick those quarter, the to in XX. demand in continued the off and last entered of As In high I continuing. about we year. that pushing We've we in last huge saw unprecedented we record levels into talked an

increasing. foot interstate homes traffic Some talked the we the ready holding metrics the the through past, not about some the calls per if that still is are of migration steady of in our

near-term, of So range now. we're we occupancy in levels the those kind reporting keep the that in expect to

normal, to practices normal back there year of a Towards as things return. bit little period half of workout going more when be to the collection the the return a presumably is

near-term the have a executing really Fantastic. occupancy demands. So looks visibility year but of full matter the full in just on good turns. It's I the into don't

Nick Joseph

just internal of you and year? NAV. the HPA Thanks helpful. broadly, on to the in you I through kind your coming And over that's know look include of kind last then do think sales, you on own of if that's the at reporting maybe you're But, kind those relative kind HPA asset asset charts sales changed And how more if supplemental. some of

Jack Corrigan

seeing the seen range for question come that Jack, for through the is getting prices selling, Nick. in We were the this that you're we're our when in a It's houses in decision through. nationally, disposition same thanks double-digit definitely and growth. coming in so We're to that to Yes, it's probably sell HPA of seeing not and also our range the sell factor what it. rent strong pretty

to we keep how sell, what when So care our think with we're itself. that of sell to and to determine HPA let on going it I the and take program

Nick Joseph

you. Thank

Operator

you. Thank

with Bank comes America. from Jeff proceed your question next the of line of question. with Spector Please Our

Jeff Spector

quarter. I Good amazing, paid there a what's of the growth from opportunities and business to is development every morning, quarter by talked Is lots X,XXX X,XXX to the that think for David end your year? opportunities. to years. from asked guess ‘XX. It's the you and resources a about goal by has accelerate you if limit delivery faster? the to a possibility the on accelerate that I what thinking of said XX,XXX how you The accelerate about to way about your not, over it comments is limits homes growing probably evolved human there the I’ve listening congratulations and way just ahead company,

David Singelyn

Yes, so good morning, Jeff.

growth. between end that XX,XXXX lost of it's today. not been the while at land There’s for we successful far And so a year a out things, to we're that very I earnings, And all, now appreciate and during we've XX just continue the of of couple there. XX market the right and First expect and the right we competitive on our control we homes ability comments XX,XXX right land. competitors, goals end to we homes, to accelerated our to homes XX clarify, by finding at to the lots right And price. more it's us successful. And opportunity. And the We're of we're to right that neighborhoods just today, a our is gives as the lots contiguous are acceleration expect finding be our at lot contiguous well. finding in acquire upper the in markets It to the that existing our estimate. are be

compared line stronger is on to So And land will for be very strong up. move land stronger. we that to year are of XXXX for history. that ramping trend acquisition acquisition our we definitely to the and continue look we continue a

Jeff Spector

then And Thank picture. its you. my question second again, big

Just you're mean, saying single-family acceptance I about to preference And listening you're can even I again a agree out of versus just it rentals. comments you your say? into XX higher really markets demand you're more you again, And to those broadened really think markets, or this and are it to the markets, to again, feels U.S. these on do like grow rent own. be population growth in let's or in you commented, focused looking markets

David Singelyn

hear look was opportunities may market if we looking And we the number process. until us. Jeff, for And very to you announce you've Columbus to the have added for really are as more it come that more been don't started with a at things market. this XXXX opportunities, I but in positive year. evaluate us, you future, mean and we growth we believe of have continue I we know a to do

that opportunities some So have us. capital of a a We of think lot more cost I will that evaluation. And for much there's today. facilitate favorable recognize we

Jeff Spector

Okay, thanks Dave.

David Singelyn

Thanks, Jeff.

Operator

Thank you.

with Please Stanley. Ronald question proceed your question. Kamdem comes the with line of from Morgan next Our

Ronald Kamdem

Congrats on a great quarter.

guidance. is question first just Just on the

here what from a how are you little just the I about debt when for points of to you basis guys can XXX thinking drag in little bad maybe the XQ conservative And you baked felt sort rest Thanks. about year? of think in what digging had bit bad debt? that you a it bit

Chris Lau

comments. we're have perspective, to here. I the Yes, our good track from the continuing first back, Chris continued it's step with perspective, a and collections going morning to play through debt we're And really what's other unclear going pleased think Ultimately, recent into standpoint? the federal I think I news to pay I say, close a Ron, know, the appreciate on how to would on also very out. question a in But quarter regulatory that's we're bad from attention taking April. from

is that with most the uncertainty so, start our year, the the of And guidance said, at still out of influenced there. that

balance that the intact of debt And year, guidance full this so this X% of with the year, our of probably for We guidance our of the of left for quarter. year X.X% bad first midpoint for the most a we've from blended that saw the that. in the left was to view year. below we've the the balance remainder touch what we untapped for right as part, And perspective. But now, original a of

Ronald Kamdem

That helpful. does feel pretty conservative, but that's

with just what new of think just off When The I turn of other demand color, can that times and renewals, of terms that operating either help your charts. maybe leasing occupancy. demand comes of level at of the little assets, sort provide up more sort right moving a bit on, of your us the with that terms you what you of leasing, sort in your is upside understand you the that look sort comes the development in leverage

Bryan Smith

in Bryan. our position. into turn in We times being mid-XX is number this good Yes the really factors ago, set this tightened standards, different days that But we're Ronald come in well. up a plays that cash-to-cash increased now they're play interesting. There's areas. of we've by it’s a out our as year Hi, in to mid-XXs underwriting security in some rest in occupancy the of range, addition elevated also some deposits mid-XX the rate,

long-term good pulling couple benefit. good just in levers a can been have decisions. where that we're we position future demands the make we're Again, of a So fantastic. And will other really

Ronald Kamdem

Thanks. guys. congrats Right,

David Singelyn

Thanks, Ron.

Operator

you. Thank

Our your from proceed with question. Please KBW. Rahmani Jade of line with next question comes

Jade Rahmani

very much. you Thank

at to are all some you perhaps that as disposition plan for seeing, call? tool that surge the prices adding you to home in own rent a the With a we of strategy, are exploring portfolio

Jack Corrigan

for Jack this Jade, Hi, question. the Thanks Corrigan.

to ultimately of fixes proceeds we're with interested your homes, And the stuff up with into expect kind to million sell. it's and We go really underserved fixing to X to prices going sale own on in realm, aren't home lease have continue our we price. families not ventured that

Jade Rahmani

addition adding also with you potentially are management that property a services folks sale and to the well housing growing as community? as In for to interested that all providing at who on acquire noted, ancillary emphasis and built revenues, shortage you housing business, around in

David Singelyn

Yes, so Jade it’s Dave.

As I with today, when Jeff, do look to and things, have may to it's about number one it, do at adding mentioned a before adding scale markets do tend we additional can our robust, what but enter areas, not and whether business a are many we our about those talk operating discuss or are with years in we of of lines, very, additional of talk reiterate we'll and we And those, flexible we board do future of we we frequently. just place I'll We cost the a favorable very that prior capital. systems very we positive significantly. in it. very compared them

of So does ability lot opportunity our in system. for it create a the

Jade Rahmani

and one solely to lumber cost or including just up land the to home said appreciation is that was the in the impact prices? Thanks X% build X% a you quick also clarification, you

David Singelyn

get input we're five and over weren't Yes, we volume costs, additional lumber growth the the years, discounts efficiencies we the to costs able strictly due to that and able last have that to earlier. Thanks, That other our some Jade. experience

the actual budgeted costs is the to So kit our really those are construction is each But offsetting lumber. other. the basically

Jade Rahmani

you. Thank

Operator

you. Thank

Crédit Sam Suisse. with Please proceed question with line your of from next comes Choe question. Our

Sam Choe

great a guys. the mentioned Hi, intro buy increased seeing guess comments, Congrats quarter. Jack opportunities. box I on

was it in think bill for platform. context the the I of rent

for you're on could touch and if maybe So way that on I wondering acquisitions. was elaborate market in seeing the then what you traditional

Jack Corrigan

Thanks is Jack. for Yes, question. the this

terms acquisition, there land of market in the established markets of is seller for In and and a the in seeing number five just executing land brokers being the on out know us we've what land, land years. been years for we're that in the

that to in there's we pursue opportunities And inbound so have the when calls land we're past. would getting

So we seeing MLS of always in and just of increase share able signs opportunities be market, we're arena. been we're pretty to production but in that terms competitive, transactions, our landscapes the early optimistic, the we've our see the in that may

Sam Choe

Thank there. may Appreciate question then be Bryan. color you. the a for And

that ending I'm and previous ending XX.X%, seeing looking at just at So period And occupancy the in days I'm XX.X quarter. is that versus average at which great. occupied XX.X

head I'm trying seeing. wrap kind monthly my So you've the to momentum around of just been

January out So then how up can of happened? play February how kind did and that of, you kind explain ramp

Bryan Smith

Sure.

So and But end out. between is QX month minimal. explorations the difference at of the before of move the QX occupancy some was

the And mentioned those turn to from seen need we XX the we've of year, April. that homes rates we that So remarks beginning this But prepared in occupied quickly. year. were for days in momentum average had we've increasing my the I high the XX.X or

is prepared quickly these issue sequentially can move and become into The how can have when be significant. pre-leased, our residents for many much release, now of March up more homes actually out April. ticking are January, been programs it's pre-leasing February, So which we

which but busier And fantastic. vacancy, has just So the change, we're of spring full there's a speed now kind the been and the entering certain element you're season of that's ahead. overall leasing momentum frictional seeing,

occupancy really the side. things So on look good

Sam Choe

That's Thank so much. Great. helpful. you

Operator

Thank you.

the of with Our proceed next Pawlowski line Street question comes Green question. Advisors. your from John with Please

John Pawlowski

land taking revenue likely Chris seems debt ever bad before. for from our than still year a elevated this is remaining X.X% a even question. lot more handle five the X% with Thanks on

regular to at processes you're presuming So can falls end? where us give sense the for once, off just occupancy a collection you

Chris Lau

very, the But Thanks, touch tying off first Bryan that, are to starting sure. think to year. question. back to And actually think Yes, probably on John. in I strong it I we And on started ago with this things look in this happy response mentioned, a a much his there. bit about, just talked as on months the side. our we're was really what Bryan just call the of leasing the that of last still we're uncertainty But couple seeing demand is very

built year we're we guidance remainder the And we've into terms not seeing our quarter potentially yet if any question seasonality is, strong going little the we're half return ranges would trend this the whether how normal on during the into as but that's of intentionally, the year. Bryan to the the in to start and whether lines be for return the mentioned in too, to or of further in then, unclear collection later speed half of a normal. our to to second include other that aspects business guidance temporary focused tools good is could conservative so the sign bump, first a year. you of the back play may touched updated not not be But but the year year, the way which to there our the occupancy by them, And April. through or of are in indication still return will, traditional yes,

so. unchanged flat then before, basis, rental muted specifically will, you to a X.XX%. stay by to bit of last points what we in is year, in XX benefited So, of or by probably a all if same so blocks, X.X basis home a John, debt that of basis pull which offset headwind that blends year's more assumes renewal from being see being the we in the of then north terms And revenue saw blends assumption. XX full and or of revenues and rate the the of Xs, home that XX points a And reminder policy then growth growth the it's by on our in guidance higher of year bad our little our guidance. these another full building contribution On midpoint from kind out that of from from occupancy it's is is lower rate still through

John Pawlowski

and hoping maybe Okay, collections thank you. or And previously think Bryan, out could Chris stare the you written off then rents. on through

begin [Indiscernible]? what's So when that folks draw back ability call their if wrote you to you to care score, the do $XX $XX, in back $XXX the or XXXX, about propensity off folks credit like

Bryan Smith

scores say to normal, some around you a is very there be it's to can expectation difficult states. pandemic have who fact, to John Hi, returns it it's delinquencies some regulations predict, when this in Bryan, I there an credit do that in we even related will to are what number certain people for will hard but pay think but

exactly of that will be a along uncertainty But, think going little there's point. I at predicting what's pull hard I some So a a time to lot ultimately bit through. there have of

John Pawlowski

Okay. for the time. Thanks

David Singelyn

Thanks John.

Operator

of Our you.[Operator Thank from line next your question proceed Please comes & Zelman Instructions] with with Dennis question. McGill Associates.

Dennis McGill

cost the for you efficiencies of utilize your comparable past. move is or what guys the I right. opportunities, on of kind would size lot ago up at All Could quality had bit a scale and you as you forward drive the time. versus in competitive you know point have in comment, range elaborate you taking your of land being year there's locations? say if versus comparable to Thanks land today a the But this process a

David Singelyn

That's low to comparable a And market-by-market. The it's seeing you're somewhere double-digits. that high on the MLS single-digits I varies question. obviously, say good what to in it some the overall, would

Dennis McGill

compared. pricing home on seeing you're what Meaning

David Singelyn

you're what to comparable it's seeing on home Well, prices.

Dennis McGill

markets you are Right, which competitive find most today? be And to Okay.

David Singelyn

Phoenix, the Well, than general, say, but I competitive. Boise competitive. more all would little all markets competitive. fairly pretty is I fairly Western say is in wouldn't they're once. definitely competitive East, are competitive. They're the Phoenix a

Dennis McGill

as as the lot, year, up are about can much in thinking of home start over XX%, at so Phoenix that an years. shelter. that case But just mentioned the consumer rent example, and up if XX% need the last alternatives increases, then, prices in there lot And realizing doesn't have since a you of Phoenix, even clearly, when aren't they're a couple looking be maybe you that single-family of Okay. XX%, incomes

tenants do So balancing to moving work are think the the that you for is economics in? factor make what

David Singelyn

of a are the are think in. tenants that lot moving I in moving Yes,

one Phoenix rent they that the of same of we're places, that's First but so percentage has all, been of so to on percentage increase high in the all, begin much say Denver feel a lower seeing. the so don’t so increase on really our coming what some from always kind at of high higher isn't to rent the lot or are Phoenix or as of a markets markets, a that people moving as hit other in that with, are

Dennis McGill

migration dynamic? The

David Singelyn

of of landscape questions. add little let When its a look land, me you couple Dennis to just the is a and color competitive absolutely Correct. at those is land it competitive. Dave, which true,

than market in that advantages, all markets have the no advantages the we different times. we markets our we're the and many, MLS of we all have as evaluating in, One many are at

not time. markets will the all So have the inflationary same same impacts at

of have at increases appreciated. becoming single-family ability with away being my of to and depending And housing. I are would way I'm over taking because grow of in this is opportunities a the today look that growing. from of to part satisfy And the X fact solution demand, these is but know housing being million by have multiple It's are building seen professional industry out to housing. the said years. of to on, management under It's And markets. the we lot remarks. want I really very that mind that widely the just trying XX we last Dennis, there's are recognize there by the is do, and numbers X lot the respect demand option. and in there institutional rentals a created not better we're So of quality changed now by And And known high And significant we homes. in part And be you that housing the a prepared created you supply probably changed part than people demand demand. in for million to

Dennis McGill

think bringing increases, when as the some of rent rental are the getting generally you David, market I you're single-family of rent are implying that demand perspective. that and I Or you're you you are your some at referring market to look landlord? good above that's an the increases actually that just institutional because numbers? for and guess, of Yes point, to you broader amenities services these driving

David Singelyn

think there people looking that option at think ago. XX is its options going homes is years I didn't are up I a market driven. the they because No, their market single-family But evaluate or into put

We management so levels, to also had quality of as result the And competitive. the we've local service believe up operators, that's homes I of moving And housing. they've institutional to and a remain entire their their markets increase of out the there. quality raised the professional

Dennis McGill

Great. Appreciate it as always, luck. good

David Singelyn

Thanks, Dennis.

Operator

Thank you.

of the line Keegan the question. from Berenberg. with proceed comes question Carl Please with next Our

Keegan Carl

Hi, guys, time. the thanks for taking

us revolving I on some think first on you color what give that the facility? are credit the sustainability placed metrics are

David Singelyn

Sure. ESG actually improvement. tied it's Good question. morning to to It's Keegan. actually our tied And score. year-over-year grant Good B

that long ESG grant would borrowing our for spread. our slight so in to hurdles as we provide benefit improvement B continuing And score need

Keegan Carl

the Got topic things, it. developments development the And but given you lumber was just given have earlier temporarily then I on cost of shortages? know labor and it rising of to discussion side pausing thought any

David Singelyn

Dave. we viewed The when is from really And a And acquisition today in you development five is fueling yields long now. the This doing program commodity to developed on and land homes, developed what get program. is and we years the other look are that abided at the are to prices. to fluctuation being provide of that our of for in yields, homes is higher its quality part four instead far superior the growth channels XX% of

superior or But prices returns channels to bit that can we accelerated areas. prices. what another them superior to we And we to products product and just going acquire. believe to can less. other is be with the And we temporary today, even it the you. little having sometimes it's should We're I economic is going still Sometimes these be that be to reiterate higher see prices in in and it's some at still even far for that acquire stronger, a

are the and equal at pace we I of means we've put this. greater into other of yields an are inventory. yes, But our accelerating some rental our today, being side pace or that on the new said homes increases think in Jack that seen cost But maintained. rates equation the

So in an even our some seeing though we're yields, are to drawing also because our increased degradation we're compared seeing costs, revenue we not any underwriting underwriting. increased

So, development looking slow right now, pace. to no, we or down not are

Jack Corrigan

to I I operationally that would would to, add also also that stop and start. Keegan

with as as trades lot to a pretty nervous. things your to make going lose You're you're well of that and do credibility trying your employees

that. So I a fan to be would do of not trying

Keegan Carl

guys. your Thanks Got for time, it.

David Singelyn

Keegan. Thanks,

Operator

you. Thank

comes Batory Batory Mr. question Tyler with next of your from Capital with line Our Please your Janney question. live. Markets. line is proceed

Tyler Batory

Hi Chris Thank morning. good Question you. here. for

there core then you in that how leasing the a guidance staff on of for books the for not of And your the sure in wages compensated little one-time or the or X% end first how maintenance Just talk you see terms the is expenses progressing Can about anything the year, running low that in rest going on the bit of range year? agents? guide your for quarter OpEx, more for labor quarter? situation

Chris Lau

on will, it because other we specifically timing. but property contemplating see the kind the our on unusual see first for potentially out to say Thanks market if of X% there as contemplated that expenses, I Tyler. property just included inflationary in labor, is year, and that see would of And a labor, and being later pressures being inflationary contemplating for of inventory still expectations to X% in that area. we full very basis, turn in the or demand unchanged that's certain we of when being much that question, for materials the combined something the the a contemplated, as fives the that and is you the as year, No, is environment, materials, collection taxes there that return year tools taxes with to pressures We then around And good as cost do well well. normal. taxes, on everything you that our quarter out fact then nothing see really area. can Sure, we X% fact we've down break components. just start there's of X% view in things part standpoint, started the excluding that driven in particular, those notable specifically you couple much area property And on here. timing can of from to quarterly I probably a And Chris recall, you carve think of yes, really that may

that, guidance of the and start the very we're way mindful winded of saying, of that long in contemplated at yes, So, our year.

Tyler Batory

more, in where right of correlation the prices, how prices decisions management home And the housing topic, in your a to home but and about thinking rent what's right bigger of in on Excellent. in revenue now certainly pricing role your follow now? just up between are market terms on rent going terms you're growth growth a bit playing little homes

Bryan Smith

you shortage But to this if the Tyler HPA lag a than Bryan. markets growth of There's It to really that factor There a with there we're that related. area supply a the be now. are sale Hi, a shortage is a the that's seeing. power and traditionally and similar you're in supply now. used high some take shortage, there for at does for there's was supply is of the is us rents HPA And look product, growth single-family seeing there's longer rent giving the pricing Phoenix rentals.

a for that into basis. expectations dramatic of from square earlier comments One ties that migration of our pool foot and increase. they're a Jack an of Phoenix is paying we're California active and too, increase the the per key example, points made to that's as the about note on what important seeing pretty incomes the an out we're in seeing some It year-over-year,

and are a playing So there lot single-family, of contributing Suppliers single-family value is propositions factors. different clearly platform the of industry, kind are improvements well. The in as our there a rental one of of them.

a good things that us that pricing So of giving power. there are number are

Tyler Batory

detail. the Thank Okay appreciate you.

Operator

you. Thank

final Our question. Please of with question your RBC this Markets. Capital from line proceed comes morning with Heffern Brad

Brad Heffern

Good morning, everyone.

on also like development things on up on Has time, showing delayed the Going cost things been from of not showing We've etcetera. schedule about delivery we've pressures. obviously any there earlier, back not to that? lumber, the some questions pressure heard time up appliances being the about heard

David Singelyn

Not we advantages have of is, of of to-date, the have one limited number floor a one plans. we

and supply in a while a took get it to were while short for And so, like windows them.

out. ordering started the three just getting windows. we So instead months months out nine of We're same

So production management. advantage our we of take style

Brad Heffern

X out moving And about kind a and preps. on times been you've debt more hanging range see the leverage talk times you of it. around with was you I bit then, been maybe corporate targets then hoping Chris, how the this over and preps little Got time, it's X.X

think take As agencies time. these for out look well? that that times? X rating how the you of overall as more like over about company leverage the the Should multiple did sort And

Chris Lau

at looked how question, Thanks different it that's And at for a of Good to numbers. number about much we've it. I yes, And we bit debt as would Brad. spoken on the start also internally, also it's more a straight And metric. you're it asking we'd net on ways. a leverage holistic. more at by basis, well. always saying, we've a look the right traditionally always, EBITDA including And rating little debt, agencies preference generally look But

And And X us of see if traditional that to like the and so, our the into top then sheet. you on in balance say we the area that's that X.X would you that targeted. add that traditionally brings EBITDA we've take of the times right preferred level net to debt I times

comes capital And my our of of capital we're the mindful right mix and a would preferred basis are holistic forms again, that areas a ultimately in all about and comments. expect mentioned be this the mix success. to on basis, in same much And, where now leverage But, of so as DNE we very now. on that the I refinance in very prepared I we're to cost all thinking

Brad Heffern

Okay, thank you.

Chris Lau

Thanks Brad.

Operator

and turn ladies Mr. final comments. gentlemen floor our concludes back any question the for you, I'll to session. Singelyn Thank and answer that

David Singelyn

operator, you and to then your time you you for today. all Thank thank of

this for results growth Have balance you. our excited of pleased about a and XXXX the with potential for thank Goodbye. Again, years. I'm day. quarter. future We our And are good

Operator

concludes you. conference. Thank today's This

disconnect lines at your Thank you time. may participation. your this You for

American Homes 4 Rent (AMH) 7 May 212021 Q1 Earnings call transcript