AGOURA HILLS, Calif.,
Feb. 26, 2015 /PRNewswire/
-- American Homes 4 Rent (NYSE: AMH), a leading provider of
high quality single-family homes for rent, today announced its
financial and operating results for the quarter and full year ended
December 31, 2014.
Highlights
- Core Funds from Operations ("Core FFO") (as defined) for the
fourth quarter and full year 2014 were $42.0
million, or $0.16 per FFO
share, and $143.8 million, or
$0.57 per FFO share,
respectively.
- Net Operating Income from leased properties ("NOI") for the
quarter ended December 31, 2014, was
$68.0 million, a 14.5% increase from
$59.4 million for the quarter ended
September 30, 2014. NOI for the
year ended December 31, 2014, was
$232.3 million.
- Total portfolio increased by 3,722 homes to 34,599 as of
December 31, 2014, from 30,877 as of
September 30, 2014. As of
December 31, 2014, the Company had
28,250 leased properties, an increase of 2,089 leased properties
from September 30, 2014.
- Continued strong occupancy, with 92.8% of properties leased
that have been previously leased or rent-ready for more than 90
days and total portfolio occupancy of 81.6%.
- Completed securitization transaction in November 2014, which raised gross proceeds of
$528.4 million, with a
duration-adjusted weighted-average coupon rate of 4.40% for a
ten-year term.
- Completed the acquisition of the Ellington Housing
Single-Family Portfolio in December
2014, which added 914 homes located in markets in
Arizona, Colorado, Georgia, North
Carolina, Tennessee and
Texas to the Company's
portfolio.
"We are extremely pleased with the strong operating results
across our platform throughout 2014, our first full year as a
public company," stated David
Singelyn, American Homes 4 Rent's Chief Executive
Officer. "Our internalized operating platform is gaining
efficiency as we continue to lease up our homes, with our
rent-ready portfolio surpassing 30,000 units, and our acquisition
of the Ellington portfolio further expanding our presence in our
core markets. As we look ahead to 2015, we believe we remain
well-positioned to continue to execute our growth strategies, and
drive higher cash flows and valuations for our shareholders."
Fourth Quarter 2014 Financial Results
Total revenues increased 5.9% to $116.9
million for the fourth quarter of 2014 from $110.4 million for the third quarter of 2014.
Revenue growth was driven by continued strong leasing activity, as
our total leased portfolio grew by 2,089 homes during the fourth
quarter of 2014.
NOI from leased properties increased 14.5% to $68.0 million for the fourth quarter of 2014,
compared to $59.4 million for the
third quarter of 2014. This increase was primarily due to
substantial growth in rental income resulting from a larger number
of leased properties.
Core FFO was $42.0 million, or
$0.16 per FFO share, for the fourth
quarter of 2014, compared to $38.5
million, or $0.15 per FFO
share, for the third quarter of 2014.
The Company had a net loss of $10.0
million for the fourth quarter of 2014.
Full Year 2014 Financial Results
Total revenues were $398.9 million
for the year ended December 31, 2014.
Revenue growth was driven by continued strong leasing activity, as
our total leased portfolio grew by 10,922 homes during the year
ended December 31,
2014.
NOI from leased properties totaled $232.3
million for the year ended December
31, 2014. This increase was primarily due to substantial
growth in rental income resulting from a larger number of leased
properties.
Core FFO was $143.8 million, or
$0.57 per FFO share, for the year
ended December 31, 2014.
Net loss totaled $33.1 million for
the year ended December 31, 2014.
NOI, FFO and Core FFO are supplemental non-GAAP financial
measures. Reconciliations to GAAP measures are provided in a
schedule accompanying this press release.
Portfolio
As of December 31, 2014, the
Company had 28,250 leased properties, an increase of 2,089
properties from September 30, 2014.
At December 31, 2014, the leased
percentage for properties that have been rent-ready for more than
90 days or initially leased after completing renovations was 92.8%,
compared to 94.1% at September 30,
2014.
Investments
During the fourth quarter of 2014, the company's total portfolio
rose by 3,722 homes, including the acquisition of the Ellington
Housing Single-Family Portfolio, increasing our total portfolio to
34,599 homes as of December 31, 2014,
compared to 30,877 homes as of September 30,
2014.
In December 2014, the Company
completed the acquisition of the Ellington Housing Single-Family
Portfolio, which added 914 homes located in markets in Arizona, Colorado, Georgia, North
Carolina, Tennessee and
Texas to the Company's
portfolio.
Capital Activities and Recent Announcements
In November 2014, the Company
raised $528.4 million in gross
proceeds through the issuance and sale of single-family rental
pass-through certificates that represent beneficial ownership
interests in a loan secured by 4,503 homes transferred to an
affiliate from the Company's portfolio of single-family properties.
The offering had a duration-adjusted weighted-average coupon rate
of 4.40% for a ten-year term.
Additional information
A copy of the Company's Fourth Quarter 2014 Supplemental
Information Package and this press release are available on our
website at www.americanhomes4rent.com. This information has also
been furnished to the SEC in a current report on Form 8-K.
Conference Call
A conference call is scheduled on Friday,
February 27, 2015, at 11:00 a.m.
Eastern Time to discuss the Company's financial results for
the quarter ended December 31, 2014,
and to provide an update on its business. The domestic dial-in
number is (877) 705-6003 (for U.S. and Canada) and the international dial-in number
is (201) 493-6725 (passcode not required). A simultaneous audio
webcast may be accessed by using the link at
www.americanhomes4rent.com, under "For Investors." A replay of the
conference call may be accessed through March 13, 2015, by calling (877) 870-5176 (U.S.
and Canada) or (858) 384-5517
(international), replay pin number 13600081#, or by using the link
at www.americanhomes4rent.com, under "For Investors."
About American Homes 4 Rent
American Homes 4 Rent (NYSE: AMH) is a leader in the
single-family home rental industry and "American Homes 4 Rent" is
fast becoming a nationally recognized brand for rental homes, known
for high quality, good value and tenant satisfaction. We are an
internally managed Maryland real
estate investment trust, or REIT, focused on acquiring, renovating,
leasing, and operating attractive, single-family homes as rental
properties. As of December 31, 2014,
we owned 34,599 single-family properties in selected submarkets in
22 states.
Forward-Looking Statements
This press release contains "forward-looking statements." These
forward-looking statements relate to beliefs, expectations or
intentions and similar statements concerning matters that are not
of historical fact and are generally accompanied by words such as
"estimate," "project," "predict," "believe," "expect,"
"anticipate," "intend," "potential," "plan," "goal" or other words
that convey the uncertainty of future events or outcomes. Examples
of forward-looking statements contained in this press release
include, among others, our belief that we have a continuing
significant opportunity to acquire quality single-family homes and
to experience high tenant retention and rental rate increases. The
Company has based these forward-looking statements on its current
expectations and assumptions about future events. While the
Company's management considers these expectations to be reasonable,
they are inherently subject to risks, contingencies and
uncertainties, most of which are difficult to predict and many of
which are beyond the Company's control and could cause actual
results to differ materially from any future results, performance
or achievements expressed or implied by these forward-looking
statements. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company undertakes no obligation to update any
forward-looking statements to conform to actual results or changes
in its expectations, unless required by applicable law. For a
further description of the risks and uncertainties that could cause
actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to the
business of the Company in general, see the "Risk Factors"
disclosed in the Company's Annual Report on Form 10-K for the year
ended December 31, 2013, and in the
Company's subsequent filings with the SEC.
Non-GAAP Financial Measures
This press release and the Fourth Quarter 2014 Supplemental
Information Package include FFO, Core FFO and NOI, which are
non-GAAP financial measures. We believe these measures are helpful
in understanding our financial performance and are widely used in
the REIT industry. Because other REITs may not compute these
financial measures in the same manner, FFO, Core FFO and NOI may
not be comparable among REITs. In addition, FFO, Core FFO and NOI
are not substitutes for net income / (loss) or cash flow from
operations, as defined by GAAP, as measures of our liquidity,
operating performance or ability to pay dividends. Reconciliations
of these non-GAAP financial measures to the most directly
comparable GAAP measures are included in this press release and in
the Fourth Quarter 2014 Supplemental Information Package.
American Homes 4
Rent
|
|
Consolidated
Balance Sheets
|
(Amounts in thousands, except share
data)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
|
|
Single-family
properties:
|
|
|
|
|
|
|
Land
|
|
|
$
1,104,409
|
|
$
728,362
|
|
Buildings and
improvements
|
|
|
4,808,706
|
|
3,188,693
|
|
Single-family
properties held for sale
|
|
|
3,818
|
|
6,569
|
|
|
|
|
5,916,933
|
|
3,923,624
|
|
Less: accumulated
depreciation
|
|
|
(206,262)
|
|
(62,202)
|
Single-family
properties, net
|
|
|
5,710,671
|
|
3,861,422
|
Cash and cash
equivalents
|
|
|
108,787
|
|
148,989
|
Restricted
cash
|
|
|
77,198
|
|
26,430
|
Rent and other
receivables, net
|
|
|
11,009
|
|
6,863
|
Escrow deposits,
prepaid expenses and other assets
|
|
|
118,783
|
|
39,212
|
Deferred costs and
other intangibles, net
|
|
|
54,582
|
|
20,573
|
Asset-backed
securitization certificates
|
|
|
25,666
|
|
-
|
Goodwill
|
|
|
120,655
|
|
120,655
|
Total
assets
|
|
|
$
6,227,351
|
|
$
4,224,144
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Credit
facility
|
|
|
$
207,000
|
|
$
375,000
|
Asset-backed
securitizations
|
|
|
1,519,390
|
|
-
|
Note
payable
|
|
|
51,644
|
|
-
|
Accounts payable and
accrued expenses
|
|
|
149,706
|
|
103,397
|
Contingently
convertible Series E units liability
|
|
|
72,057
|
|
66,938
|
Preferred shares
derivative liability
|
|
|
57,960
|
|
28,150
|
Total
liabilities
|
|
|
2,057,757
|
|
573,485
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Class A
common shares, $0.01 par value per
share, 450,000,000 shares authorized, 210,838,831 and 184,869,219 shares issued and
outstanding at December 31, 2014
and 2013, respectively
|
|
|
2,108
|
|
1,848
|
|
Class B
common shares, $0.01 par value per
share, 50,000,000 shares authorized, 635,075 shares issued and outstanding
at December 31, 2014 and 2013
|
|
|
6
|
|
6
|
|
Preferred shares, $0.01 par value per share, 100,000,000 shares authorized, 17,060,000 and
9,060,000 issued and outstanding
at December 31, 2014 and 2013,
respectively
|
|
|
171
|
|
91
|
|
Additional paid-in
capital
|
|
|
3,618,207
|
|
2,996,478
|
|
Accumulated
deficit
|
|
|
(170,162)
|
|
(63,479)
|
|
Accumulated other
comprehensive loss
|
|
|
(229)
|
|
-
|
|
Total shareholders'
equity
|
|
|
3,450,101
|
|
2,934,944
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
|
719,493
|
|
715,715
|
|
Total equity
|
|
|
4,169,594
|
|
3,650,659
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
|
$
6,227,351
|
|
$
4,224,144
|
American Homes 4
Rent
|
|
Consolidated
Statements of Operations
|
(Amounts in
thousands, except share data)
|
|
|
|
|
For the Three
Months
|
|
For the
Years
|
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Rents from
single-family properties
|
|
$
109,543
|
|
$
61,843
|
|
$
376,385
|
|
$
132,722
|
|
Fees from
single-family properties
|
|
1,192
|
|
1,409
|
|
5,968
|
|
3,639
|
|
Tenant
charge-backs
|
|
5,621
|
|
1,218
|
|
14,931
|
|
1,588
|
|
Other
|
|
543
|
|
420
|
|
1,590
|
|
1,083
|
Total
revenues
|
|
116,899
|
|
64,890
|
|
398,874
|
|
139,032
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Property operating
expenses
|
|
|
|
|
|
|
|
|
|
Leased single-family
properties
|
|
48,326
|
|
24,470
|
|
164,965
|
|
51,411
|
|
Vacant single-family
properties and other
|
|
4,129
|
|
8,348
|
|
23,408
|
|
22,341
|
|
General and
administrative expense
|
|
5,879
|
|
3,667
|
|
21,947
|
|
8,845
|
|
Advisory
fees
|
|
-
|
|
-
|
|
-
|
|
6,352
|
|
Interest
expense
|
|
9,379
|
|
-
|
|
19,881
|
|
370
|
|
Noncash share-based
compensation expense
|
|
691
|
|
473
|
|
2,586
|
|
1,079
|
|
Acquisition fees and
costs expensed
|
|
6,465
|
|
814
|
|
22,386
|
|
4,799
|
|
Depreciation and
amortization
|
|
47,205
|
|
33,160
|
|
165,516
|
|
70,987
|
Total
expenses
|
|
122,074
|
|
70,932
|
|
420,689
|
|
166,184
|
|
|
|
|
|
|
|
|
|
|
Gain on remeasurement
of equity method investment
|
|
-
|
|
-
|
|
-
|
|
10,945
|
Remeasurement of
Series E units
|
|
(1,007)
|
|
(1,619)
|
|
(5,119)
|
|
(2,057)
|
Remeasurement of
Preferred shares
|
|
(3,810)
|
|
(1,810)
|
|
(6,158)
|
|
(1,810)
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
(9,992)
|
|
(9,471)
|
|
(33,092)
|
|
(20,074)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
|
Gain on disposition
of single-family properties
|
|
-
|
|
-
|
|
-
|
|
904
|
|
Income from
discontinued operations
|
|
-
|
|
-
|
|
-
|
|
104
|
Income from
discontinued operations
|
|
-
|
|
-
|
|
-
|
|
1,008
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(9,992)
|
|
(9,471)
|
|
(33,092)
|
|
(19,066)
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
3,751
|
|
3,888
|
|
14,965
|
|
13,245
|
Dividends on
preferred shares
|
|
5,569
|
|
1,160
|
|
18,928
|
|
1,160
|
Conversion of
preferred units
|
|
-
|
|
-
|
|
-
|
|
10,456
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
|
$
(19,312)
|
|
$
(14,519)
|
|
$
(66,985)
|
|
$
(43,927)
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding–basic and diluted
|
|
211,473,906
|
|
185,499,066
|
|
196,348,757
|
|
123,592,086
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share–basic and diluted:
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
(0.09)
|
|
$
(0.08)
|
|
$
(0.34)
|
|
$
(0.37)
|
|
Income from
discontinued operations
|
|
-
|
|
-
|
|
-
|
|
0.01
|
Net loss attributable
to common shareholders per
share–basic and diluted
|
|
|
|
|
|
|
|
|
|
$
(0.09)
|
|
$
(0.08)
|
|
$
(0.34)
|
|
$
(0.36)
|
Non-GAAP Financial Measures
Funds from Operations and Core Funds from Operations
The following is a reconciliation of net loss attributable to
common shareholders to FFO and Core FFO for the three months ended
December 31, 2014, and September 30, 2014, and the year ended
December 31, 2014 (amounts in
thousands, except share and per share data):
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net loss attributable
to common shareholders
|
$
(19,312)
|
|
$
(21,747)
|
|
$
(66,985)
|
Adjustments:
|
|
|
|
|
|
|
Noncontrolling
interests in the Operating Partnership
|
3,791
|
|
3,583
|
|
15,229
|
|
Depreciation and
amortization of real estate assets
|
45,513
|
|
43,153
|
|
159,286
|
Funds from
operations
|
$
29,992
|
|
$
24,989
|
|
$
107,530
|
Adjustments:
|
|
|
|
|
|
|
Acquisition fees and
costs expensed
|
6,465
|
|
14,550
|
|
22,386
|
|
Noncash share-based
compensation expense
|
691
|
|
751
|
|
2,586
|
|
Remeasurement of
Series E units
|
1,007
|
|
(3,588)
|
|
5,119
|
|
Remeasurement of
Preferred shares
|
3,810
|
|
1,750
|
|
6,158
|
Core funds from
operations
|
$
41,965
|
|
$
38,452
|
|
$
143,779
|
Weighted-average
number of FFO shares(1)
|
265,750,550
|
|
256,170,943
|
|
250,625,401
|
FFO per
weighted-average FFO share
|
$
0.11
|
|
$
0.10
|
|
$
0.43
|
Core FFO per
weighted-average FFO share
|
$
0.16
|
|
$
0.15
|
|
$
0.57
|
|
|
(1)
|
Includes
weighted-average common shares outstanding and assumes full
conversion of all Operating Partnership units outstanding,
including Class A units, which totaled 13,787,292 at September 30,
2014, and 14,440,670 at December 31, 2014, as well as 31,085,974
Series C units, 4,375,000 Series D units and 4,375,000 Series E
units for all periods.
|
FFO is a non-GAAP measure that we calculate in accordance with
the White Paper on FFO approved by the Board of Governors of the
National Association of Real Estate Investment Trusts ("NAREIT"),
which defines FFO as net income or loss calculated in accordance
with GAAP, excluding extraordinary items, as defined by GAAP, gains
and losses from sales of depreciable real estate and impairment
write-downs associated with depreciable real estate, plus real
estate-related depreciation and amortization (excluding
amortization of deferred financing costs and depreciation of
non-real estate assets), and after adjustment for unconsolidated
partnerships and joint ventures.
Core FFO is a non-GAAP financial measure that we use as a
supplemental measure of our performance. We compute Core FFO
by adjusting FFO for (1) acquisition fees and costs expensed
incurred with business combinations and the acquisition of
properties with existing leases, (2) noncash share-based
compensation expense and (3) noncash fair value adjustments
associated with remeasuring our Series E units liability and
Preferred shares derivative liability to fair value.
We present FFO and FFO per FFO share because we consider FFO to
be an important measure of the performance of real estate
companies, as do many analysts in evaluating our Company. We
believe that FFO is a helpful measure of a REIT's performance since
FFO excludes depreciation, which is included in computing net
income and assumes that the value of real estate diminishes
predictably over time. We believe that real estate values
fluctuate due to market conditions and in response to
inflation.
We also believe that Core FFO and Core FFO per FFO share are
helpful to investors as supplemental measures of the operating
performance of our Company as they allow investors to compare our
operating performance to prior reporting periods without the effect
of certain items that, by nature, are not comparable from period to
period.
FFO and Core FFO are not a substitute for net cash flow provided
by operating activities or net loss per share, as determined in
accordance with GAAP, as a measure of our liquidity, operating
performance or ability to pay dividends. FFO and Core FFO
also are not necessarily indicative of cash available to fund
future cash needs. Because other REITs may not compute FFO
and Core FFO in the same manner, FFO and Core FFO may not be
comparable among REITs.
Reconciliation of Net Operating Income to Net Loss
NOI is a supplemental non-GAAP financial measure that we define
as rents and fees from single-family properties and tenant
charge-backs, less property operating expenses for leased
single-family properties. NOI excludes remeasurement of preferred
shares, remeasurement of Series E units, depreciation and
amortization, acquisition fees and costs expensed, noncash
share-based compensation expense, interest expense, general and
administrative expense, property operating expenses for vacant
single-family properties and other, and other revenues.
We consider NOI to be a meaningful financial measure because we
believe it is helpful to investors in understanding the operating
performance of our leased single-family properties. It should be
considered only as a supplement to net income / (loss) as a measure
of our performance. NOI should not be used as a measure of the
Company's liquidity, nor is it indicative of funds available to
fund the Company's cash needs, including its ability to pay
dividends or make distributions. NOI also should not be used as a
substitute for net income / (loss) or net cash flows from operating
activities (as computed in accordance with GAAP).
The following is a reconciliation of NOI to net loss as
determined in accordance with GAAP (amounts in thousands):
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net loss
|
$
(9,992)
|
|
$
(12,796)
|
|
$
(33,092)
|
Remeasurement of
Preferred Shares
|
3,810
|
|
1,750
|
|
6,158
|
Remeasurement of
Series E units
|
1,007
|
|
(3,588)
|
|
5,119
|
Depreciation and
amortization
|
47,205
|
|
44,855
|
|
165,516
|
Acquisition fees and
costs expensed
|
6,465
|
|
14,550
|
|
22,386
|
Noncash share-based
compensation expense
|
691
|
|
751
|
|
2,586
|
Interest
expense
|
9,379
|
|
5,112
|
|
19,881
|
General and
administrative expense
|
5,879
|
|
5,291
|
|
21,947
|
Property operating
expenses for vacant single-family properties and other
|
4,129
|
|
3,885
|
|
23,408
|
Other
revenues
|
(543)
|
|
(372)
|
|
(1,590)
|
Net operating
income
|
$
68,030
|
|
$
59,438
|
|
$
232,319
|
Contact:
American Homes 4 Rent
Investor Relations
Phone: (855) 794-2447
Email: investors@ah4r.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-homes-4-rent-reports-fourth-quarter-and-full-year-2014-financial-and-operating-results-300042576.html
SOURCE American Homes 4 Rent