American Homes 4 Rent (AMH) 2 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Nicholas Fromm	executive
David Singelyn	executive
Bryan Smith	executive
Christopher Lau	executive
Juan Sanabria	analyst
Eric Wolfe	analyst
James Feldman	analyst
Jeffrey Spector	analyst
Linda Yu Tsai	analyst
John Pawlowski	analyst
Daniel Tricarico	analyst
Jesse Lederman	analyst
Adam Kramer	analyst
Brad Heffern	analyst

Call transcript

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Operator

Greetings, and welcome to the AMH Second Quarter 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Nick Fromm, Director Investor Relations. Thank you, Nick.

begin. may You

Nicholas Fromm

and you XXXX Thank David us our Operating for Chief Financial Good conference for call. quarter Officer; Chief Smith, earnings Officer; are Lau, With second Chief Executive Officer. morning. Bryan joining Chris me Singelyn, today

differ advised are may those business include could in that number are from these to forward-looking other results statements All our These forward-looking in included to of the in call historical uncertainties results that a cause actual of that statements facts this that risks filings described this factors be risks materially SEC. in adversely statements. projected our statements. statements releases are and Please and than and other with press conference could our affect and call subject future

only except required speak any or update of of new events as obligation X, information, as result today, revise no assume XXXX. a as statements future forward-looking by otherwise, All law. We to forward-looking whether statements, August or

reconciliation A and non-GAAP package. included is information supplemental press measures our financial earnings in release GAAP of to

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

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

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

David Singelyn

today. display. per of the X.X% power FFO to full of joining AMH The with on strong We posted Welcome, year-over-year. us everyone, second for growth thank and continues be quarter share you core platform results

$X.XX And same-home driven our outlook full increase continue growth executed This strong. well, us be guidance. and by at core core was to year. represents midpoint. per teams NOI the rental X% FFO increased fundamentals share for the by revenue to Our and $X.XX to Leading

derisked our our bond unsecured issuance. have recent we through maturities XX-year debt addition, In

development goals; and investments approach to and concepts: on predictable our allocation One, operational front; with when AMH objectives corporate by and three, consistency results front, consistent by be year, management. Two, And the and balance AMH the capital continues demonstrated patient As predictability predictability the through and sheet our and prudent disciplined consistency defined strategy growth this meet our on our the following

the coupled rates is burden with resulting high The fundamentals rental and elevated single-family benefits This people dynamic, from the housing population single-family homeownership. without demographics or shortage cost living big support home imbalance. mortgage to Looking housing demand continue rental to for picture. demand seeking value at in of, supply Housing national the prices the continue drive a proposition. and and homes of of

we AMH, contributing to resident satisfy At are our housing development by housing providing superior stock and doing for our the rental single-family new through a part program. demand growing high-quality experience

going is CEO bright. is Before that I want to smoothly. to mention talented Bryan, turn our and I experienced future The our transition AMH and team over it is very

the seen of have the platform our over decade. power You past

see results, forward. this can moving you it see will You in and it quarter's

operations Now for on I will and our investment update it turn an over programs.

Bryan Smith

and everyone. Dave, you, morning, good Thank

second quarter. the Our throughout solid, operating leasing XXXX were seasonally results strong with spring metrics

the better-than-expected done executing job driving both teams of controllable results have Our all a revenue areas line great across top in expenses. and business,

X.X% to new occupied we overall. of second lease XX.X%. average accomplished quarter, the same-home while in this in X.X% days June up quarter, of consistent the We During maintained month accelerating each growth and

rental spreads As rate collections. driving resident core of of season, move-out entered strategy increases and as we expectations our renewal X.X%, growth exceeding of quarter. and spreads This resulted the balanced in we last renewal X.X% blended same-home quarter, for posted the continued our revenue discussed by X.X% we slightly on

were tight organization expense was growth than operating of X.X%, what drove expense front, we across largely better On which core the the expense controls same-home expecting.

of X.X% predictable growth leasing All of core of through to results same-home consistent AMH quarter, season. ability and the for this demonstrating team's deliver the the and our power the NOI spring platform, resulted in

a we to The managing season shifting seasonality building expect done year. forward, momentum turnover job to our Looking see normal now great leasing half of and in is back due focus has team the to inventory. this

and For month same-home of spreads the strong occupied the average days was and rate This with the remained continued X%, July, renewal season. in new reflects impact steady our expectations of of Leasing hold at line with growth to of start XX.X%. and X.X% respectively. move-out

increase reflects core in outlook by the same-home basis performance strong year, the the guidance This revenue first led in by for XX half back in increase XX remainder part of point outlook point a of driven midpoint. for points full our to our the the our combined NOI basis Our year growth core with full X.X% has the in expectations us basis the growth XX of year rate our increase half to at year. a year

reduction our in In expense year addition, outlook point reflects growth. basis core full a the updated XX

we remain and as continue in-house to vertically into front, investment the patient on Lastly, disciplined program. invest integrated our we development

and high on are developed track area average year rents, stabilized reserve year-on economic expenses, for X% at to deliver homes between based yields this newly We CapEx. X,XXX on and X,XXX a in the

next and Not the resale does on growth the reduces also consistency As our AMH a over that years, fully other land the of control for external strategy. the example This at homebuilders it pipeline predictability lots. in is the this reminder, we or our few is of of another for but dependency growth. only market, core our XX,XXX fuel

first year the closing, across In half the characterized by execution was great of the organization.

power the outlook strength single-family rental and in fundamentals the season leasing platform of from continued sector. and of momentum increased Our the the our represents AMH the spring

call to update. the over Chris for financial With turn I that, will the

Christopher Lau

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

results. review a First, of our quarterly

share we generated shareholders basis, capital $X.XX million XXXX with we common an year-over-year to net $X.XX commentary share. with an or FFO increased FFO, core our unit off quarter and our activity. Second, $X.XX of growth our FFO, representing solid On sheet X.X% year-over-year growth. of of attributable consistent execution operational recent And $XX.X representing delivered and adjusted with X.X% I'll on diluted operating income of third, and update around per balance guidance. Starting close results, another

From AMH venture total an Development for second our joint a to portfolios. our program wholly-owned delivered and XXX of perspective, investment quarter, the homes

portfolio, wholly-owned XXX we our cost a for homes for million. Specifically, delivered $XXX total approximately investment of

Outside continue acquisition we homes to as during programs just of the largely development, our XX on pause remain quarter. acquired

net we XXX proceeds area. quarter, generating million the disposition sold an during in at approximately the Additionally, yield $XXX economic average of properties mid-X%

the available securitization a like which preferred transaction another million quarter, billion X.Xx, includes our from of the on and I'd repay timed $XXX to shares third undrawn. to had quarter. and activity. cash attractive an We adjusted Next, for was X.X% was the At priced turn end proceeds the proceeds our our down to XXXX-SFRX the was basis to we during proceeds $XXX over approximately $X.XX the capital future credit with balance share meaningfully facility gross EBITDA sheet outstanding during raised of balance debt, unsecured and be used opportunistically including June. million that successful million $XXX will of offering forward revolved our estimated of recent net million of oversubscribed on The shares to coupon and bond fully sheet, had month of X net total

take further they debt and fully derisked, opportunities growth of to strengthens our our offering, bond are June the themselves. now financial flexibility firepower maturities which additional present advantage XXXX Following when

newly scheduled new cost of feature Additionally, mature that AMH Terms homes. of previous the improved XXXX. quarter, our in new now that facility borrowing, the successfully enhanced the revolving modestly efficiency a which a development credit we proactively term to the energy fully credit and linked following of our X-year credit initially extended was facility include of end to closed first $X.XX is facility, of constructed the half billion replaced sustainability

earnings we our before questions, evening's release. call the which positively open cover across yesterday revised XXXX your board And in press guidance, was I'll earnings to the updated

of Starting year Same-Home points debt recognizing growth our full a points that with XX leasing expect by revenues spreads increased to to the midpoint we outlook basis now our strong XXX the year approximate improved core and full basis X%. basis we've on portfolio. expectations bad

by side, modestly of well full We've factoring as midpoint on our in to the XX team's points our to execution, solid XX X%. of a the full expense midpoint control expense property reduced basis growth points translates also expectations core information. Which core cost basis of And increase NOI into year overall to year our X.X%. an tax expectations as favorable the ongoing growth

from an expect $X.XX FFO additional contribution across FFO expectations increased of portfolio. an the perspective, core our entire NOI we from And now

per FFO as our expectations the extra modestly income As contribution we in full full total, and improved G&A And increased expense. our outlook interest of from $X.XX. by midpoint year XXXX an year of core have well around $X.XX share

previous high Our our per represents and range share now growth new year-over-year end reflects midpoint a $X.XX X%. of expectation the of of

the I'd shareholder of power we and to you consistently the the to again. and platform as call demonstrates board open thank questions, quarter a again across that share team. AMH for our deliver solid was to again total This And AMH a and and our quick ability predictably like value your the to creation

to time, your your the call open we'll for you and questions. thank that, Operator? with And

Operator

line Markets. Instructions] Capital comes Sanabria Our [Operator of first the Juan from question BMO with

Juan Sanabria

where July. on Just rate curious those sending you're I the for talk trend. out. curious lease about July believe new July you renewals little bit the and could a the if you for gave growth But

If the -- think lease second I about you expectations could X% give blended rate by you mentioned for your increased just us you half.

give that, can appreciated. around also you be details more if that any So would

Bryan Smith

to X.X%, management approach said spreads process. And we're our at half, in bit We're and the high strong. was the least outlook a renewals although half we the our and terms balanced There's to sending Xs. that like in nice in portfolio new of expectations across back of earlier, terms remarks, points benefit, July both as a the those Bryan. our have of renewals to year, a the in the renewal in for by outlook And lease in mailing the posted came diversified I rate is a really the This second renewals mentioned The Midwest our Carolina's. by outlook XX revenue regions of expecting demand basis little I in new increased increased of strength out certain outstanding the range. really as back new come X%, low It's rates lot growth lease Juan. of prepared bolstered in we're X% of footprint, We significantly. been in our year. and at in half the in

Juan Sanabria

then peers or fatigue [ price some out. ]. talked a felt supply negative impact effects Florida broadly be just as more curious, bit about from through to of calling new And starting well one your as

regions in what points? So portfolio? Are X on seeing your in curious particular those your is just on guys any you that take

Bryan Smith

Yes.

a supply, it's think, of most been I about kind to is horizontal apartments. is the with of in make. a talked Phoenix really we're center There's new that built-to-rent the supply I'd on townhomes number of like effective, same. be couple for to We created that in It's key One, coming built-to-rent calls talking terms seems market. and referring the point equal. row the points, feel to a all about the supply. is lot Phoenix. all residential of area and not They're built-to-rent that's though, not houses of

think In the is that product Arizona of is Burns in than detatch, fact, single-family less XX% inventory which that John building. I we're the cited built-to-rent

outstanding in a well single-family multifamily XX% occupancy supply there or area, in pressure but in well over market market the the the as located, very That's bringing the growth With supply, little well. and past still years. detached, we're increased and performing a I performing built-to-rent Phoenix, is of pressure. increased seen X on bit built-to-rent Most that's though, X extremely the that there a in is said, it's notably some

of particular our XX% is market. that fact, new built-to-rent In excess in in product occupied

there is It it to strong But We will Phoenix pressure. supply market. product be be believe may some remains temporary. ours. necessarily like-for-like very not So a

the get We in absorbed expect term. near to that

Operator

the of line Wolfe with Citibank. comes Our next from Eric question

Eric Wolfe

right expecting year. you mentioned your that And X.X% you're last debt think your X%. I is was bad I just now think it remarks in that

I XX would basis points help relative guess would I by So think your same-store to that your revenue original about guidance.

the blended trying So another I new your guidance the bps, and and X between bridge original your XX gap the just guidance what's curious, like, is adding contributing to was increase? just spread bps to just

Christopher Lau

Chris Eric. for here. Thanks question. the Sure,

XX from would half-half, the basis call largely debt In terms of our I half increased bad increased guide, experience. the coming, from is of our outlook spread better-than-expected think and points it, half

is And pretty that patterns continuing about strong across little view to most AMH a we were saw collections, really color. quarter. financial to trends can the general strong second The share into the Just the as which our really our portfolio, to is We're on maybe we last consistent the I with what think respect if topic areas positive quarter. bit I health collection much of encouraging what of see update more was indication resident pretty the collection of base. a discussion

To full the Look, year, With outlook X% of our that about in levels the you the bad terms guide. or your left to guidance higher think X% so. we're average. in bad this debt year mind, the tying balance back typically consistent in of as our in the season. last that our area year. And very second of Pretty correlate point on for for bad out, with outlook mindful half the that fact that debt point year low we've with outlook bringing into the of with move-out is debt contemplated of half said,

important But that we can and do of think at point, year. season look, that is still given better ahead But than I'm it's prudent I remain that of this we move-out that provide this nice majority the half in back hopeful the us. of update a

Eric Wolfe

terms I And So guess, just the months last trending of bad Got I of it. maybe where in debt is couple been? it's where today? mean

Christopher Lau

Yes.

at basis ran quarter Second XX points.

Operator

Feldman Our of line question comes Wells the next Fargo. from Jamie with

James Feldman

assumptions all? rate think more are where So we're to in and to your the closer right and Georgia. assumptions at what states, on your changed guidance those expenses November? millage the have get positive way you of taxes Florida given current What's some have you if taxes for property in will wondering updates And states those visibility, about because

Christopher Lau

update here. the little at Jamie, property and Look, event of kind the Sure. Florida in portfolio Georgia Chris well. halfway and overall. bit point this is, I general more the tax values tie through mind, Yes, the can of this a calendar as initial little broader year. tax half update point, keep in we've property over we're only assessed really received a about for of At get

runs and talked starts that As fall. the appeals times, plenty beginning process then over of of summer the course early we've that really into the about of

With of part, majority the being across the remainder And the out, of our being then tax third rates with the quarter. received board in as quarter. the values in the fourth our for most you point received

year. look, still we're So, in the early

states, in mentioned in seen remarks, I have the some a rest basis date, point at out most the an is this we're X% the of what this As about on the received to on we've and based earlier guidance. year growth of for Outside our prepared schedule news the basis. we that point positive good other driving of midpoint XX Indiana. Indiana received runs and than new pretty Indiana, information full reduction year on of is feeling

seen received I our little initial appeals this off in values good then, that Florida, we a slightly as and hard to said, color on and mentioned, at come portion still A Georgia this really rates season. visibility Georgia. -- kicks into in assessed we've have some point, expectations. bit the early, below any We've on But Georgia, Just initial Georgia like say of on don't values at and point. I

know, event we or of So, as type is way fourth Florida, then the too And to difficult one a other. say third and quarter state. kind really of

James Feldman

helpful. guess And markets. about shifting I to very That's the Okay. just talk just then

in and the the homes rates hoping pricing down your concerned or which occupancy thoughts just mortgage on today in on maybe about then be challenged in lower markets buying to strong, the -- you Your an you Milwaukee -- talking But specifically, thoughts you would why rates clearly, ahead, is market Midwest turnover? think there's have been do of being and know your front I more as about markets come on the higher if there. was challenge particularly about Journal Midwest article mentioned, I why get most

Bryan Smith

year. We're the pleased Jamie. Bryan. This Midwest of the with is markets performance really this

locations. Our of yards characterized seeing there. we're in couple is strong real years, really moves, the goes quality for high we're what characterized But back appreciation There's the for we've homes to the well. talked well and think. I homes. the And continued single-family same value that's in success large proposition of past specifically in-migration good really there neighborhoods, the Midwest, by some I with good portfolio are really quality-of-life about of and And being by But performance. that really -- moderation, of our positioned as high pleased talk read articles just

it Again, a the delta of for or a the change are really #X new event of markets for by product. owning constraints, depends supply mortgage cost sale value done our And and when in characterized well of and supply reason but pretty especially was the the rates, cost heavy then it's housing in of on between proposition move-out, tighter. we've renting lot on

we all So pretty cycles. be durable in to seem

Operator

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

Jeffrey Spector

you that buy is One follow-up leave the means right, Bryan. still have to concerns, of quantify go to that, renters because big investors a see flock on lower you'll of comment mortgage homes. Can that one last rates

things tighter resilient. were own, you quantify you when I -- guess, So today? cost rent, had you can commented on versus that you to to that were

Bryan Smith

as dramatic the be obviously and immune change I new won't rates some might thinking. We're think business the periods We But there. are to do last still the move Yes. of held of ownership. major have very question. during time low up on with top a not a reason into mortgage for Again, transition to supply the effect as that in as builds. residents I going be well lot mentioned effect of It's the out. But

basis across and our housing though, high-quality think are to lot we supply board for will support for that Again, you've constrained the I the a to occupancy got of markets. And that get back rate. our in provide

David Singelyn

it's Jeff, Dave.

point markets last that's that and is housing But to, more point. importantly, is we're moving undersupplied very in the We're key the undersupplied migration think in. I we're where country. that this throughout

delta And housing ownership other need very, housing better. it. we not rates between large solve is, going the One and to remains cost more strong. if people houses going of down very is So all Two some But problem. to it's the to come points a buy remain can still renting. and very there demand

And moved getting stronger interest go That back every the housing, delta. and markets. was each if without to rates up, you especially due last before migration lack in demand was is, the of point period the the

So we're going to continue economic to very see all cycles. strong in very, demand

Jeffrey Spector

development And on then have the the development follow-up question earning. yield you're -- I

talked I you You opening X are earn yield about your helping say remarks, costs year can construction did you that X? in Is you the down. that think in that think or trending year

David Singelyn

trending talking No, down. I about high at you're the land know through very, be Yes. are trades. What I've think going the that in still going the will market It it continue they growth Xs. balance up definitely is we year, to prepared of hot delivering I The are competitive, were to this be costs red or a whether in be remarks, for had don't declining. speed in development to which very used

in land and seeing about opportunities. little That's But I markets. to we're little the year. really of We some new of word And are our we're bit start land, of opportunities some we use buying sharp underlying and it. have a $XX shooting ability a all new -- this seeing us million for probably going to land buying are

for we year. right more under bit now We'll contract that have a were little next putting

to in going to will Some yields that because sellers are entitled longer it the will that for be we of And close be on land low us. above It to require the this fully get Xs%. the little a take X%.

improvement seeing So some move as forward. you're we

Operator

Jefferies. next comes Our from Linda with the question line Tsai of

Linda Yu Tsai

on homes, the and And yield mid-X%. how mid-X% expect to have stable? yield XXX The dispositions? stay in Would net proceeds do $XXX of a million much you visibility you

Christopher Lau

and right Sure. Linda, seeing in Xs% through continuing that area mid- really I solid it's last representative to been that pretty high Chris we're at quarters now, Look, least. Overall, in we're here. we've pretty to the the mid-Xs%, consistent the program. see I for marketplace disposition what would traction think several so, or say of

year job this summer selling of half did that the great capturing season. teams a and the the First spring

the from to than As of helping properties, bringing total quarter, you to our XXX capital about to year great a slightly a perspective, our activity meantime. income point interest recycling out, disposition better the year-to-date which in selling which expectations, homes is XXX contribute full half in of is

While attractively programs. our into getting growth redeployed really

full on activity feels in dispositions of the into year outlook, the from perspective year still So X,XXX that cap disposition half slows rate just the that Xs% of around home for typically and feels It recognizing we're our right year. tying down the like in something sales right. in back a full expectations track

Linda Yu Tsai

into you dispositions to Would continue as you head more expect lean to year? into next

Christopher Lau

make We growth we've our great the is like to attractive down of before, and really ability recycle of capital finding asset our unit the that opportunities portfolio smart talked would. many decisions the into to level. really, granularity to and Refining aspects And times asset management programs. attractively, its about our One class

say, the securitizations that is freed other from off of that remaining our the coming disposition is I The up balance currently are catalyst, opportunities being would to collateral sheet.

securitizations which already If off paid first we maturing in quarter. X year, that were you recall, the first of this was the had

will we have about off securitizations paid the of homes more or we offering And -- mentioned that repayable be X second June third X,XXX the this remarks, will mentioned The quarter. in then successful I securitizations of become XXXX. The after those bond release prepared which in X so. this in

basis. moving freeing essentially unsecured also balance to balance to about, management from asset XXX% disposition Game of on refinance plan, the next as that sheet, will the we've probably leg up and a to perspective. those homes be X,XXX opportunity talked unencumbered is sheet an a X,XXX

Operator

with of next Our Green question Street. line Pawlowski comes the John from

John Pawlowski

expense specific expect too do items just directional in moves, to on few early numbers, a just to but talk line terms next Chris, any year? I you expenses. questions know reaccelerate of it's quick

Christopher Lau

about would as about execution across points well, the really look, on year, this property down XX We good thinking year, -- year basis next and the at from in full talked John, midpoint I taxes about things a board. feeling we're say momentum we're the basis. particular, coming team,

then job really And we basis are a doing Driving call, XX across good doing teams down really the points property on what controlling importantly, tax the controllables midpoint. look, taxes, nonproperty portfolio. outside X% and to the revised executing the the at outlook expenses, by of well

So execution I agree seeing with those your statement, it's year. continue job. great like benefits Resident many probably expect I next a next investments programs And of perspective, We're little from the team's team our for all year doing bit I well. said, as really early into of to But the be talking and the is about like numbers would XXX. to controllables a a from

some part, property been, from that a again, are rate basis, numbers, function then taxes the the expectation tax property time. property now call times. over coming a taxes in expectation And no about XX and mark now has And here, of Property should talked in, talk On so. of be a peak to we've lag our off price of or also many moderating appreciation it, can't values. water is hit that high home for perspective, but time crystal ball like our

we're that that year. this think I seeing

good into a crystal I next perspective. it, year. me taxes Can't if but ball wouldn't of hopefully, surprise but directional moderation continue we it it feel rate from Again, quantify can't yet, as property

John Pawlowski

into we'll of maintenance and period costs, above-average the you some on stay, Do just fully turnover deferred and follow-up costs last turnover spend. kind turned homes think of repair and One and bad see debt increasing temporary you post-COVID these haven't of Okay. environments R&M that really turn and of given of a because normalize. evictions length

David Singelyn

more our Dave. the a ago lot teams, it's of is, John, more tie Chris Yes. field lot this a said, invested I discipline couple around I'll And maintenance. question. into and field in teams a have would then we And in it repair years in XXX. we that that X Resident and reiterate the and visibility our things our

of is business, business, is this it a seasonal has thing The second that seasonality the largely returned. and

to were comparisons much from years on seasonality patterns. as period-to-period pandemic going of last the back better a basis, have going on than been in -- so be patterns basis couple are And the we year-over-year to a regular they

is add the our gives would area that to in us fact a that maintenance a and repairs confidence new materials in in that the third portfolio long-term lot to us continue purpose by of that are And I and that mind. with we has maintenance our homes about talk built-for-rental manner

didn't decking much the The than built the the flooring cost the homes significantly. way do not home, a our maintenance as quality the we the age higher-end home more today under portfolio our is control and average remaining more built, is is one consistent is plumbing piece, So if fixtures. keep that. of aging is keeping the and whole the the But will is importantly, in age the of of future

Operator

Our Scotiabank. comes next Daniel question with of from Tricarico line the

Daniel Tricarico

of of little sense us the that those Chris, lead more? ramp securitization. you those source Could enough up to a you opportunities you collateral could a be from assets? And pipeline noted development the funds on magnitude give would the of large from the it disposition the

Christopher Lau

collateral Sure. Daniel. or in properties our framing Each Yes, is so. one these collateralized numbers, securitizations, terms X,XXX of of magnitude. one are it, average call by, the our securitizations each of

next overnight free securitizations, on So as our being opportunities the X,XXX unsecured year, point think off homes. through free units the as just would homes. to will switch to MLS. out, paid attractively homes, I days that really mentioned, wouldn't in end-user large existing X buyers. mentioned, basis. to this year much as I means be portfolio up the I right? And put I on our Which the recycling that then X,XXX the that need vacant we capital it part able the dispositions Which are terms being the of that either That on are of though, flipping an refinance, recycle X because paid channel capital. The sold MLS or up of will recycle about those and off to fine-tune as one of to of we creates homeowner have another really, all capital, Pretty thing timeline a we great to of a which opportunity that through these in to selling

And sell, not vacant plus but good it's units our XX% having as problem have, about of we to are think to homes a vacant.

we time them a that. sale spend homes then residents are roll. and of We'll to after move need short prepping the so roll, market on leases putting out for After to amount And for let identified those leases when disposition. homes

big opportunity a years gradual and this I attractively the a more kind collateral of So especially of to being as ahead it of portfolio fine-tune recycle opportunity think is and come, capital would released. us, refine for runway to of of

Daniel Tricarico

Chris, you I'll keep guess here. I

You guidance the breakdown. occupancy. change specific on Nothing gave

initially low the had you're keeping strength in seeing, is time strategy the demand focused a towards rate unchanged and XX% So the expectation you year? at that you guess, more I just, this with of

Bryan Smith

one Bryan. of focused (sic) revenue. any ] This Jesse Daniel is component We're not [ on

really revenue just to Our growth time. objective and maximize revenue consistently is over

isolation. on outlook the seeing, you're we're demand. focused year it beginning But consistent any increased of that our on that rate our able the XX% with is us in being metric the to is one capitalize So not expectations and increased at

Operator

next Our line with question from & Zelman of the Lederman comes Jesse Associates.

Jesse Lederman

what first insurance business, an late give you rate you're time like please? reached Looks on on Can expense of inflation update a single-digit seeing since for the side XXXX. insurance on you of us the the

Christopher Lau

renewal say number Chris point. from Jesse, standpoint, that's Yes, this actual would insurance at an I here. Sure. an

If recall, first falls quarter. during the our you renewal

think, X fell a reflection quarter, I as single-family it the saw our the land of little profile industry in improving the think is year great bit in heard guidance perspective. And basis, this actual as prior landscape so insurance I One, a the it I in associated year start function been done. has dispersed contemplated number risk which second where single some elsewhere of a in a What and talked expect reflects renewal And favorable quarterly digits knew And full overall from the of at of from insurance year, insurance an year also broader a sure guidance, comps was think We from to you've the assets. year. perspective. of this full year it's is high things. with and I'm we on the the we as would about and we contemplated really

And part, then weather AMH in in team's our differentiated our insurance you and profile, programs, AMH around disaster the renewals. mature which especially has the into risk large events, reflected preparedness and in particular, profile, can response see which risk to thanks really

Jesse Lederman

to development looks are like have burdened markets increased Great. to That's already that going high It a exposure helpful. by gears pipeline. supply. forward Shifting the you'll

reflects a particular, So that look this were and is it more of those at fundamentals percentage areas strong. markets and where But course, online? development of come if there made in Phoenix markets. supply conceivably those and such particularly will any ago large be is concern a And from your X from like looks will in I investments lots coming Vegas, XX% of future years come will of couple

David Singelyn

The Dave. don't This no. a answer have concern. is I Yes. is

me Let of I Bryan mentioned -- you this. some think give

the very, that our It's seeing sale. coming is that is that's we next in. we're not high are those is And and are delivering And same their very location building to locations. Our retail talked not built-to-rent. our built-to-rent important for the built-to-rent built-to-rent. the building where they're where homes are where in infill demand homebuilders We as for right about

detached And the or their the homes. building Again, mentioned When at employment you city look the of We're closer home building. this because attached building of residents type we're we're homes. that to Bryan location. not the of -- that areas already.

deliveries detached. look what is are to on and in -- The of nationwide attached this are market them. the they on XX% at built-to-rent going order XX%, you built-to-rent much are is offered homes deliveries, are them today being having the concessions in If rent longer,

we Our concessions, our of that we high, product is have today, delivering homes with built-to-rent are built-to-rent our demand occupied for products. all XX% no that high

deliveries quality product than and in have higher So built-to-rent. demand about the And the I built-to-rent future. higher being concerns other our don't I see as occupancy of a it

Operator

question from with Stanley. Kramer next of the line comes Adam Our Morgan

Adam Kramer

the Congrats your guess, of kind specifically, cost a today? you ATM strong capital your raise. to about view quarter on cost a of guide on capital wanted I active equity in of like looks I ask how really the bit in today the bit. looks issuing little Last where a like first second not but a you it quarter. and quarter, than higher the year little price earlier in stock year, were little is this bit

-- kind So just of about of cost of with capital specifically the think equity again, your generically across you just maybe cost forms capital today? different of capital, even but how all

Christopher Lau

on an you cost small I direction. up the What we would totally forward perspective. -- to moving you will actually that down, a Look, year. event-driven were right north in up to fully Small had use here. tank the year, equity earlier Chris basis. we'd was moving our moved on an in the active capital a recall, opportunity see remind forward. are things if we on Adam, inclusion, from top forward of opportunistically way a small think where of of And where more equity this this $XX in we terms S&P earlier and opportunities, of I like back still Clearly, raise of going Index Sure. that

opportunity think particular, development cost is opportunity capital of important I the the of and But have right? the -- to relative think that's use the all right It's the to plan, we capital to keyword our and right? cost how in to mind thing of opportunistic, we set as capital, use opportunities places relative set. And and the finding the keep about in and that program, attractively sized

and any that the equity one talked on calendar about land lot program can The and pipeline about We've fundable constructed cash we've combination the in thoughtful without very a is development retained given a development year, any of given the year, basis of built in sizing through our program right? but for business. program our a so need it be flow been from times development

off can which opportunistic in when right? that weapon of We're a and a then road of development. or become it then Maybe opportunities the equity portfolio opportunities about, level or optimistic front make types on it's we leverage start sense recycled look down MLS capital is balance portfolio capacity lot an really little more Some as sheet, to the down builder for bit we've dispositions of to the they those means from talked national for incremental opportunities. look future the opportunities road. the Maybe

on As today's liquidity have cost us, to we for clock by know, there are unlock there find opportunities a to of that standards. lot the for and as think fantastic to up been you of of going out assemble can debt value to that we and smaller are especially the number about and now those operating need in especially our And bringing in a IRR are years environment. bringing that portfolios on those create portfolios platform medium-sized our

like that cost basis, make could on of capital. of relative relative a something ton a And to sense

said, location, buy you need price. don't and of from around our development and unwavering But be need ourselves. we I they the quality to And we program, like opportunities box the always because our on are stretch built-in to growth the from to right us, hear like commitment

Adam Kramer

That Chris. was helpful. really

different Just note. little on of a bit

renewals is of your maybe Just either with rate just comments expectations what that rate of quantifying today. renewals? on half of rate kind Maybe Just And of on the on take wondering rate thumb of compare of take some and how or history? kind where in terms does then renewals on today around for you're the second to of going year the of the out kind rule renewal take kind kind renewals? of the

Bryan Smith

Adam. This Bryan. Yes, is

that we've talked what And the pretty to really the of maintenance historical earlier, XX% going over our a the about reasons. dynamics. improvement about residents run I of also a retention platform appreciating bit rate was forward. And kind back a context in at look pre-COVID But if improved rate offering. the it's the context, of supply then little is power the the services I think for talked As and expectation you significant the of we've are One, a platform. couple a

targeting. over And is right XX% what or years. nice improvement So the past X X we're really again,

Operator

the next of comes from RBC Our Brad Heffern question Markets. Capital with line

Brad Heffern

places. and a weaker in has pricing just few supply a continue of picked up in I For-sale lot is housing markets, rent up looking little to Obviously, a well. as your go think

closer if might place you're economics you? So to more are what far development the or you from I'm want active still a to way if quite gives in curious acquire a where

Bryan Smith

is Bryan. Yes, Brad. This

if before sense consistent specific talked to of thousands across of to for at it's they of today's in quarter, in lot look we our national terms builder active current activity, the about make you with spread, box of what range review tens us reviewing homes. and ask XX% last the We're we bid start somewhere In continue And in environment. to portfolio. buy XX% really the a

ready seeing aren't to we'll significant we of when any movement. So advantage it. happens, take But it be

Brad Heffern

be just just in Got is quarter, the Okay. the color onetime that maybe there bigger anything then, there would it. And have. sequential in a you jump what great. timing? would Any think shifting Chris, than Was I'm was I quarter? there curious, typically second FFO in

Christopher Lau

Sure. No, nothing -- tiny. definitely nothing one --

in of bit. I see same-store as you a timing little can it a comps year well. function And prior think quarterly of the it's largely pool

of example, on timing the fell X%. that the year at with last to look basis things to that expectation you where really a has property If full And ran of for taxes, sub-X% relative do at year. quarterly some

Operator

Street. Pawlowski Our next question John Green from comes the line with of

John Pawlowski

a Bryan, about I geographic of you question footprint a through today. have how your kind broader think

within in, there's So and it, those of diversification call of you're markets, submarkets XX every within markets. one plenty

the level or curious level better perhaps how So merits list through drive and concentrating density in of efficiency at think better a you corporate property potential capital shorter rather? the to markets your of

Bryan Smith

footprint. We're Bryan. diversified with is This our very pleased John. Thanks, Yes.

expansive but are model efficiencies still -- that satellite built in some proven us to huge of we manage these past, of the not and operating very to a efficient proven the kind markets hub-and-spoke really have have about presence, markets allow us where it I've good we have through it's the We to be system, a lot allows footprint. in a a we to way be talked there. may that an of

We're there. the where growth States. you the our every development and not United program select targeting terms market think markets, developing can see In in of on it we're concentration across I in

markets. Although very we're in development more footprint, portfolio with pleased excited growth about we're our the

in ties it delivering right -- communities into I a the density, that's for too, And area in And have right obviously, that we're on remember, think which XX question, really we're increased and now. and side. potential operating repairs on and maintenance concentrating your growth. and markets more still cases, lot laying most into we're because efficiencies

Operator

I'd to turn There for back are management closing like at further time. no over the this comments. questions to call

David Singelyn

all and you we of Have next thank you, with for a today. to you you speak weekend, operator, and Thank will quarter. great your time

Operator

teleconference. concludes This today's

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

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