• Core FFO per Share Growth: 6.6% growth in core FFO per share for 2024.
• Same-Home Core Revenue Growth: 4% for Q4 2024 and 5% for the full year.
• Core Operating Expense Growth: 4.8% for Q4 2024 and 4.3% for the full year.
• Same-Home Core NOI Growth: 3.6% for Q4 2024 and 5.3% for the full year.
• Net Income: $123.2 million for Q4 2024, or $0.33 per diluted share.
• Full Year Net Income: $398.5 million, or $1.08 per diluted share.
• Homes Delivered: 2,356 homes delivered in 2024 from the AMH Development program.
• Portfolio Acquisition: Acquired nearly 1,700 homes for approximately $480 million in Q4 2024.
• Property Dispositions: Sold 1,705 properties in 2024 for total net proceeds of approximately $530 million.
• Net Debt to Adjusted EBITDA: 5.4 times at the end of 2024.
• 2025 Core FFO per Share Guidance: $1.80 to $1.86, representing 3.4% growth at the midpoint.
• 2025 Same-Home Core Revenue Growth Outlook: 3.5% at the midpoint.
• 2025 Same-Home Core NOI Growth Expectation: 3.25% at the midpoint.
• 2025 Development Program Investment: $1 billion to $1.2 billion, adding 2,200 to 2,400 homes.

• Warning! GuruFocus has detected 7 Warning Signs with AMH.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• American Homes 4 Rent (NYSE:AMH) reported a strong finish to 2024 with a 6.6% growth in core FFO per share.
• The company achieved a 4% same-home core revenue growth in the fourth quarter, contributing to a full-year core revenue growth of 5%.
• AMH's development program continues to be a primary growth channel, with plans to deliver approximately 2,300 homes in 2025.
• The company has a strong balance sheet with a fully undrawn $1.25 billion revolving credit facility and approximately $200 million in cash.
• AMH's leadership team has been strengthened with key promotions, ensuring continued focus on execution and outperformance.

Negative Points

• Core operating expense growth was 4.8% for the fourth quarter, slightly higher than revenue growth, which could pressure margins.
• The company expects bad debt to remain slightly elevated in the low 1% area for 2025, indicating ongoing challenges in certain markets.
• AMH does not anticipate any material acquisitions in 2025 due to current pricing and cost of capital environments.
• The expected blended rent growth for 2025 is in the high 3% area, which may be considered modest given the current inflationary environment.
• Potential risks include labor and material cost increases, particularly tariffs on lumber, which could impact development yields.

Q & A Highlights

Q: Can you discuss your expected development yields in 2025, particularly in relation to tariffs and lumber costs? A: Bryan Smith, CEO: We expect yields to accelerate as we enter the spring leasing season. While there are concerns about tariffs and labor costs, over half of our planned new home deliveries for 2025 have costs already locked in. We are monitoring the situation closely but are well-positioned for the first half of the year.

Q: How do you view the current supply situation in your markets, and how does it affect your pricing power? A: Bryan Smith, CEO: Supply pressures vary across markets. Some areas like the Midwest and Carolinas have seen little supply pressure, while others like the Southwest have been impacted. However, we are seeing positive signs in markets like Phoenix and Tampa, indicating a potential easing of supply pressures.

Q: Your occupancy guidance suggests an increase. Are you seeing indicators that support this, and how might it affect blended rate growth? A: Bryan Smith, CEO: We are seeing strong leasing activity and expect occupancy to increase as we move into the prime leasing season. Our January new lease rates have accelerated, and we anticipate continued momentum, which should support our blended rate growth expectations.

Q: Can you break down your rent growth expectations between new leases and renewals? A: Bryan Smith, CEO: For 2025, we expect new lease growth in the 3% area and renewal growth around 4%. This is based on a combination of loss to lease and market rent growth projections across our markets.

Q: What are your thoughts on acquisitions given your current liquidity and market conditions? A: Christopher Lau, CFO: We are monitoring the acquisition market closely but remain disciplined. Many properties do not meet our buy box criteria, and current yields are not attractive. We are optimistic about potential portfolio opportunities but will only pursue them if they align with our standards.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.