American Homes 4 Rent (AMH) Nareit REIT Week: 2024 Investor Conference summary

Leadership transition and company positioning

• CEO transition planned for end of year, with experienced internal successor ready to lead.

• Company has built a differentiated platform over 10+ years, leveraging technology and infrastructure.

• Asset base is diversified across 30+ high-growth markets, targeting areas with strong job and population growth.

• Strong millennial demand for rental housing supports long-term growth.

• Over 15% of homes are purpose-built for rental, with 10,000 homes delivered.

Market dynamics and demand trends

• U.S. housing remains significantly undersupplied, especially in high-growth regions.

• Renting is now 28-31% cheaper than buying in top markets, supporting rental rate growth above inflation.

• Move-outs to homeownership have declined to 28-29% due to higher interest rates and limited supply.

• Tenant incomes and credit quality remain strong, with incoming residents averaging $140,000+ in income and high credit scores.

• Demand and occupancy are robust across most markets, with Midwest and Florida outperforming.

Operational and financial performance

• Spring occupancy held at 96.6%, with renewal rent increases in the low 5% range and new lease growth accelerating to 5.7% in May.

• Loss to lease is around 3%, with potential for further rental rate growth.

• Collections are healthy and slightly improved year-over-year, despite some municipal processing delays.

• Expense pressures from insurance and property taxes are moderating, with insurance renewals up high single digits and property tax growth expected to slow to low 7%.

• Investments in technology and internal teams are driving controllable expenses to low single-digit growth.