American Homes 4 Rent (AMH) 26 Feb 212020 Q4 Earnings call transcript

Greetings, and welcome to the American Homes 4 Rent Fourth Quarter and Full Year 2020 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. I would now like to turn the conference over to your host Anne McGuinness. ahead. go Please

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

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

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

Anne, you, us I for safe and today. you're hope Thank everyone. joining morning you well. and Thank good

and We of storm. by states those impacted thinking are in Texas recent other winter the

Our being is top our and residents. priority and the safety well of our employees

with working residents are have our impacted. We been who

be company. are do events We many damage. there such we there XXXX relatively with impacted for maintain the homes our of ago. While homes our not not damage, with and business minor was the lives, aspects XX-months the all are and material insurance to pandemic impact to year expect our homes. few financial significant has The envisioned

our their breaking I residents, I'm XXXX excited their very of company's path of our havens. continue record homes during our performance success. the their their proud became safe destinations about schools, as gyms, XXXX their For and unprecedented vacation offices, with these am times. And we

our experienced in grow is built, operational to the our leadership ability we company team platforms. the year Our unique and such testament of a excellence a and strength to profitably deliver have challenging

a was While our in us set the difficult XXXX year model business estate real truly many sector, apart. for

than the this and X Homes we strong family American pandemic to a on ever of rental demand demand our industry and Rent, single accelerate, rental XXXX not platform. and resiliency the homes expect beyond. for before, continue, shined if For quality spotlight our The the stronger in of is

market enables be respond adapt advantage and grow off us growth every continue strategies, changes. us and and and Our with flexible investment cycle, differentiated paying strategies succeed, investment in to are our combined keep These This grade of balance to validated. and take sheet, to opportunities nimble.

embrace with homes environmental a operational are and provide built AMH development energy and they by residents efficient. also our sustainability. water housing The but Our platforms quality Development experience

maintain the materials functioning and use So durability to and easy a well we provide home. products of

housing In providing our we addition our on employees. our to residents, focused for and communities are also

the corporate activities. back And live and the maintain give and and where to and communities talent strive industry best charitable through a workforce, volunteering work and to employee we as we the leader, diverse developing industry. are continue attracting We to the in

board of corporate During governance our XXXX, the named Woolley Chairman Board continued trustees refreshment we last focus of was on through Ken process. May. our

of will prepared will remains. for what it face. return be that pandemic and But the forward XXXX, challenges the know we impact is when we to do normal. Looking do year know we that to life The challenges. opportunities another will we COVID recognize unique We of well not are

post is what should single certain. trends we shined a migration pandemic, know We was the and the these housing single world? us in is did that proposition pandemic tell the What a accelerating and for stay. that home offers. suburban It's trends. do simply living before family on family homes not occurring expect spotlight do to The changed So not rental to rental is data value here pandemic

people extra sense community. private Now ever, space, neighborhood than living value of more a yards and

positioned XXXX momentum starting year. across history. to have all disciplines are our in more than an standpoint, From any operations time with a we positive We at are strong

stronger demand homes we've continues demand ever is than this for to rental grow. While seen, our

high. time Our all an occupancy at is

program formations remains inventory. past need of rental and outpaced desire with single national housing the demand The has rental consistently rental with during standpoint, residents. our migrate a consistently investment collections is where for to new growth, our excess the homes. creates homes household And XXXX from growth. pandemic demand housing with truly our for outreach to This the good designed additional stock. created strong shortage. robust. and from combined rate of relationships remained this is where around left lie. Our up available And an times, will our number pick growth opportunities growth, off decade This families has a to been a these has resulting XXXX quality family There

need to Our significant this strategic through meet priority growth. is

leading available add supplies home As of all family the that ability development our best we generates development communities, acceleration single us expansion the have development XXXX of growth a community The rental the acquisition opening every of rental unique home the resulted new will of new continue builder land. our XXXX function economic and week. in in program deliveries return nearly through our of nation's to of channel. in pace the

assets. to become the a from sheet lots we home term these. our furture standpoint, more. to next long our and and deliveries to XX,XXX control make we four years. investment for enable control five land economic through provides us cycles. is capacity less built we and expect By than of of over structure Today, lastly, Our And XX,XXX and X% investments and It lots XXXX, flexibility nearly total and ability target between like the for capital have to end have the will XX,XXX. These be all times financial balance strong growth

for our the while maintain confidence for our we nearly FFO operating and on leading of per these programs, initiated in the trends cash flow our midpoint. guidance XXXX. we platforms, X.X% cash our with XXXX positive core industry This X% our much Furthermore, reinvestment into quarter strive the Given growth our need in of to it have at double share builds per growth and growth common rate as continue from $X.XX stock march taxable and distribution dictates quarterly At $X.XX necessitate further $X.XX rate. per distribution on flow distribution or our in income share. to will level. increases to the increase Beginning $X.XX per our cash taxable growth to grow, our distribution, our income And with Bryan our the deliver the will XX%, dividend will which a strategy always execute Homes to Rent value. housing is objective provides provide a per continue XXXX the continued times. successfully advance and annum, I'll of residents plans now, ahead that shareholder operational My details. through meet to hope to as approximately we call environment our Regardless provide their operate that with create X but company's needs. accretive we excited American the the still to over future continued quality returns on be value reinvestments, long homes for greater prioritizes greater am growth, that us will turn drive cash year growth. to pandemic about I pre And to in, payout akin our is to flow retaining more runway normal ratio our also of share

morning and everyone. good you, Dave, Thank

prioritizing finish continues to can breaking. record best in operational XXXX impress. to life the before. are of like summarized benefits words, decisions rentals highlighted quality two be living family people Our for and has single of suburban never COVID Demand

demand single the property fundamental were year-over-year virtual in quarter, located unprecedented of an the to the incoming our tools fourth continues of office. live demand As ready portfolio portfolio, accelerate. saw This have to up XX% are applicants we for from Notably, entering who family where prime coupled our homes. footprint. living for outside of their the of our XXXX. location professionals, shift has from meeting millennials created with regardless they them almost years XX% coming example, well Within In a choose of wave created allowing increase rent states showings quarter our per fourth many

all continue time the platform XX proud demand rate which momentum of be this created empowered over occupancy not growth. innovative into the Year. great I the could our past people by highs turn team's to in months, accomplishments Our has technology more entering New and

fourth we quarter. earlier, set new mentioned to the company records in As continue

a For pool, prior than occupied those basis the the is time lease basis it average the home of in quarter, was XXXX of of XX.X%, XXX points also New high which set same the is X.X% higher higher quarter all an which for at over days year. points spreads XXX than at record fourth

XXXX of preparedness. entered with sense and we ahead, confidence a Looking

to challenges arise operating coming platform in opportunities, tackle the that may well and Our are in best year. team positioned the and uncertainties class

demand say and information with that to the migration, or customer by on here dynamics tremendous of stay. the are amount trends capture, ground changing whether application We market based believe data, through we on confidence preferences we First, and population surveys fueled feedback. move-in this

be on to side, collection constantly features and into experience. affecting normal that bringing that from is said, enhance platform That team Second, leasing new new innovate soon. continuing practices. and efficiently the the environment our the We're our current a technology production is site Web resident regulatory enhancements to economic will released

that demand to are may changes continue ability we to quickly capture and come. of our adapt any in the However, confident wave to

Lastly, thoughts provide I more while few later, guidance. details on would to share operational like our Chris XXXX will a

continue it balanced uncertainty. given caution of outlook occupancy XX%. with average with Demand and COVID days the January is Our lingering but bullish occupied also at home record levels is same

progress With be to occupancy effected our equal when on year year, mind, XXXX physical our we normal. ahead However, practices in same or collection through to the may a that of full home return basis. XXXX we as occupancy to be expect slightly

with in over renewables. of spreads in spreads muted full pull year renewal lease mid new with and spreads our we off X% records lease of the set spreads April Please X% blended continue to spreads July X%, in will range. to burn lease pricing we continued that throughout X% January expect X% rates, the note, our the And rental For record excess leasing power XXXX to year's be through last leasing blended of until range.

As the our in growth full X.X% to leasing into rate average such, translate spreads we year range. X% expect to monthly rental

baseline expenditures, X% collection future. elevated increases back and return continued of excited term practices as charge when costs, we well the For and to our top repairs On expect normal. about maintenance slightly range. turnover I'm collections our impact as this, turnover near to in we expect

within come Our with superior opportunities on uniquely to our positions surging us the the industry operating it. that growth and platform demand capitalize

will Now, Jack. the to turn call over I

and Bryan you, good Thank morning, everyone.

accretive long shortage growth to satisfy housing, As the strategic Dave the to housing a of our of help term for brought growth value ours, mentioned, by and shifts is the top generate address and cash changing that flow is demand preferences homes growth rental migrational for national growth ongoing shareholders. priority external on and

and be we market arise to challenges. While distressed channels. provide national interest channels. opportunities markets sheet arise. activity other into strength, has changes From most we full growth we market protection conditions, is perspective, our expect MLS for programs these attractive Years our From relative and given market traditional But surging us investment transactions pronged deals although, returns conditions. with possibilities opportunity low both opportunistically growth, inventory on to strategic present from a fire. program new may to foreclosure these an three near balance buy investment us from nimble, allows MLS demand and as to and AMH development caught flexible the outcome. control combined challenge and The of term focus rental has pricing bill opportunistic continues XXXX and by our driven builder importantly, rates, opportunities continue on from to superior program, higher our perspective, record opportunity Strategically,

Over space, home and the and the past validating recognizing investors investment into quarters, further few opportunities. have builders many rushed the

While this has others thought and not leadership only does have several concept certainty if up, to ago. provide years playing the a many growth, foresight catch not replicate. it unique of are around are and difficult, also significant we source control that full it importantly, impossible, Most to advantages portfolio pursue

AMH First, builder only programs. class and in combination both is unique the platforms home of best the national development with industry operating leading the

Second, build in products from business all sides most and strategize way. continuously captured run analyze allow business the us vast amounts our to of the our data efficient to of our and

term fortress others have. and long capital balance Lastly a clear to for pursue development that the way takes not vision sheet may a in significant

development and to our its growth of proud date. are program We

we it our will and More company and to future bring importantly, shareholders. its benefits about are excited

development XX% Our of over delays, have deliver over one we the year we I of a more outstanding approximately In a be full to expectations owned XXXX. our program AMH explosive the AMH were added and wholly from am overall some details XXXX, AMH full represents kind XX% of over program, for our nearly our channels, from the development we closing, of to over nearly our to growth wholly which demonstrating between exceeding our remain to homes homes XX,XXX ramp and tremendously. positioned and to the round a continue portfolio, XXXX of XXXX. to of program great development momentum. XXXX, midpoint the other development AMH well growth and XX% The On XXX We a opportunistic continue X,XXX XXXX COVID Chris in total XXX quarter joint To proud of program. a our for and is we in of homes but portfolio, and expectations. differentiation will homes, year expect year of by fourth delivered exceeding to X,XXX plan portfolio. provide our advantage as moment. continue In execution take X,XXX are we from wholly growth to our expectations out a active overall in despite owned example This basis, homes our year. growth owned added reasonable accelerate venture our

turn call to will over the I Now Chris.

update Underlying generated over was coupled portfolio this prior growth, by Bryan core an within where breaking bad contribution from discussed, good partially further comments in NOI that sheet; fashion; translated year. drag unit, diluted year; XXXX growth benefited breaking XX into X.X% review common core from rental this we quarter's Jack, of $X.XX record same X.X% representing share was of in per core closed attributable XXXX X.X%. leasing in overall $XX.X in an X.X% $X.XX results, offset XXX FFO expenses, increase guidance. with our overview everyone. core close cover revenues, over or and unit, Thanks to out net translating performance our Starting strength X.X% and with share million revenue I'll prior adjusted higher an record and related quarterly operating of FFO by of income morning, $X.XX which debt, of I'll the of areas share; impressive in our and per second, shareholders drove basis three property of per growth generating basis my home COVID fees brief balance into our points our growth X.X% an today; off quarterly first, of third, results; results points representing which growth on with in a we

the which bad However, expectations. bad with normalizing of debt, for consistently have COVID the quarter, same of related growth in remained NOI resulting line debt throughout in been debts, would on resilient our quarterly over our home core bad right our And X.X%, X.X%. collections was fourth topic

to positioning end XXXX. turn into sheet, growth our I'd to we like quarter, been on net gas X.X internal fuel the times, capacity times, our throughout programs debt is has for was debt leverage growth which At of to us meaningfully never just X.X incremental of adjusted providing step balance with nearly our the Next, $XXX EBITDA us stronger, which the below to XXXX. of our as million target ideally

end we during and Also at was generating the the XXX we of of $XXX $XX million net Additionally, approximately fully the facility $XXX proceeds. had year, million revolving properties, quarter, cash sold credit undrawn. of million our

overview midpoint, expectation our our generate to uncertainty. which FFO I'd leading we of strongest by expect $X.XX reflects our expecting that our Next, stabilized since full full the At conservatism, for an bullish an unit. XXXX of in also balanced the in to our of per are our With continued which range initial increase outlook, guidance, year following annual core and full XXXX. industry Supporting have share COVID mind, operations year X%, we're in nearly assumptions. like year share growth between for $X.XX XXXX, given represents

our X.X% surrounding a debt full monthly rental and range. range rate the expectation X%, home already year occupancy ongoing or economic For for will between macro which similar uncertainty, on growth core to strong to which growth and pool, is in of continued our X.X% our Included expectation contemplates environment. average include core bad within revenue than to slightly X.XX% XXXX based revenues XXXX and assumption for XX,XXX COVID same between the we and growth XX,XXX X% our better properties, Bryan covered, is which regulatory as X.XX%, expect

based on between comps, April XXXX, of prior the Additionally, bad last April recent waving pull of July the through of July please debt be remember spreads and as X% will year and the off to muted renewal that likely revenues fees growth last burn we timing our to year's year throughout late lumpy of revenue period.

expect expense the of is X.X% increase growth expense XXXX and with consistent our core X.XX% to as turnover on home for between be impacts side, same growth X% operating expect of roughly to core and combined line X% costs. same we NOI to property On property X.X% other tax X.X% XXXX which And tenant we home X%, to Bryan's items, expectations reimbursement line, expense continued driven by percent, all surrounding debt reflects which to bad X.XX%. earlier bottom growth and commentary COVID

as top a billion key of external FFO growth our Additionally, on core of expect and driver his leading of our strategic comments, that expectations covered is we XX%. total objective, capital portfolios, adding invest between year, X.X priorities growth venture through program. development in one our Executing Dave deliver industry AMH this to XXXX program nearly of including growth to our approximately and billion homes to owned our expected X,XXX is homes X,XXX wholly into joint to $X.X combined and X,XXX

as this at midpoint wholly development capital of XX% expectations, joint invest perspective, other to of programs. pipeline pipeline of cash approximately our capital into we open will program and joint to rata approximately program million balance share routine as our interest XXX owned part delivered color, flow, investment capital, from excitement program, leverage our call a between our expect investment your our like venture of well capital of To expect recycled venture program And homes hold billion of disposition of as pipeline. as we and consisting our million sheet total our AMH our development XXXX wholly development investments, of that cash, our continued expect from our $X.X and sheet. funding to portfolio, to and AMH investment economic represents $XXX channels, pro we $XXX our homes capacity we from plan, to balance through split into or heading combination acquisition to recap, million development venture through our joint into the XXXX. our investment activity, additional of as continued consist questions, billion development well As year which I'd be $XXX XX-XX a roughly X,XXX reiterate additions of some added our wholly and before And $X.X $XXX the between own deployment this we inventory of million which fund owned AMH

the a our platform now EBITDA sheet. rental we've program, years, focus with in on as to multi grade high remained a fortress of margins, building single markets, which Over balance a committed differentiated industry strategy, portfolio the operating the the growth in adjusted family leads best growth channel diversified leading investment class and industry largest cultivating builder fully homes

years leading and we'll investment to to strategy XXXX Operator? of deliver growth. year to questions. open And call with pay that, core as FFO positioned another Our off continue we industry of enter the your

Thank you.

question-and-answer session will be instructions]. [Operator a We now conducting

Nick Our come line the from Citi. first of question Joseph with

How and is do out, as rolled think you occurring? maybe reorganization start to to your of people vaccine stickiness office a the return about then the tenants the

We're see a the fundamental lines. our feedback a apartments. We talked getting The state life Comments we the in shift. as across great that from see especially about such just happy I moving my those of residents, from migration outgrew patterns. didn't feedback space. We that are we're that quality very that a was they're there difference. is extra lot remarks of little getting opening bit -- a with this

is as to people are access can an in kind find in that going shape some really or So to stay think in this new of home from example. product Nevada, had excited have the may but here not to be but work they they the about I form, California,

just And or then, capital Chris, the sheet balance on plan.

that able in a redeemed couple of have are You XXXX. preferreds be to

the for then preferreds, play going B plan into E] and stack and preferreds do what's how those forward? So the capital [Series Series

think you're the that I into may preferreds about thoughts have how I bit, just Nick, asking question? we that's fit right. your think stack capital and out a if Is and may those cut the but there,

it to coming in XXXX, or the are is actually ones that how able redeemed? to I mean, specific due be

step our Both our the this have of relative low our in B Series year. screen Series back series $XXX second capital means those us and preferreds that point be will that at that for as market that too speculate early on become Xs, quarter said, what With for this and We on coupons much bit to think You're we E the decision front and of callable two exactly and a to mid dependent will cost there But during that of coupons. attractively we'll we right. of again, it, be. approximately virtually screen I series, had keep all virtually of those would those of all updated our the capital call to get of say closer about cost to dates. I everyone think probably forms very and as which strategy very attractively million little

Our line Evercore next Hightower with of questions come from ISI. Rich the

development wanted input to the I talk So costs in about pipeline.

last when I spike per home happens. that it lumber adds think $XX,XXX given that spike sort in quarter, mentioned prices, you around of the

you Thanks. of Just guys think in about yields, forecast terms impact going think how thumb we on curious in forward it? that that a if the and of rule there's about could to going how

increase. It's recently and the we're again spiked cost seeing about same

a growing yield been environment rental neutral. we've that kept Fortunately, and in rate that has

So the same. have stayed about yields the

And just your on development. a follow-up

anything should five down the the an anything less years, XX homes end As say, or you. them, that purchase, user, might have homes communities these we think a years, that about desirable about we to traditional the make consider? what Is home road, unique there

ramp. But they'd to could. desirable. desirable If very decided to decided to point individually They're I sell so No, I think we them, if be sell think they're them don't we at individually so. some plated, and we

in same, be of I to a acquire. cap stay desirable range mid -- on traded think couple seeing those If we're the have the the rates. communities cap rates they'd X%

And don't in was try community, our foresee have very community occurring they other is selling It Salem we Winston we and other both. the don't I homes think, we'd be possible. for XXX from is it's originally anything and the but where that buy to we want desirable to a older XXX them, XX So an and individuals, thing the I sell. market of rental own, and

undesirable see somebody don't being to it to I So who wants really there. live

the term We're build level enhanced But homes, putting do long build better. because just and of When in the We how And me term better house house. we an countertops, putting and maintenance our wear them built. on is that we talk plumbing a add features. we Let build fixtures. the are entry we couple rental better tear a we than long about the the in would better be slightly way to actually standard of things. home

All of those a adjustments these traditional construction, home make as than stock. housing guess, we've likely, more that I are desirable going level typical more made but to desirable, to entry the homes

Hill the come question from is Stanley. line Morgan next Our Rich of with

last a Chris, maybe this a prepared question understand I and remarks maybe debt bad to year. about bit little But I last is a disclosure for and more you, debt because the appreciate bad just wanted your night. there was lot of

maybe building remain more. it's a bit it And to this elevated that little suggest even year so for

the headwind. in some point So just debt, to is at I you first maybe Because we're think think that bad as longer the more how supposed it to break no of the about of the year? bit think versus got that half second a cadence down we could little that about a half

would And debt bad we predict. that as reiterate the plenty potential is continue eventually become of which collections headwind a just phenomenally. on be only is a view that has guidance not And to COVID and expect that us a reflection to and view of would not of it again, going eventually headwind, tailwind. I business I to performing flip And would can the there's to being none our still fact -- uncertainty ahead, the

so would the even into prudently in that I through X.X% of fourth conservatively so year basis. remain to with and track reiterate pandemic we that our continuing building a on to there is X% are full and and collections And 'XX. far, periods resilient are prior view also quarter on the that beginning

the eventually and will of to a point, of terms will a to again, 'XX, scenario the debt in At basis, for I half as of year about point, us flip second to on return debt will, year. can think shape scenario if could more certain. on there debt think I the be of that I shape envision impossible half my you tailwind. that bad think in we year that the that weightedness, at the do bad reiterate how a some In is that bad where this normal debt We exact I’d a and create a on that know there that of first none wherever a point and headwind it’s again, less of timing. of would to a where envision full than speculate full But bad lands this year, point

model So Dave, it out. to to you come you want quickly. back real to I have

One little is trying a it where a live more stable and in enough think market things wants many growth the equation but acceleration frankly, homes isn't understand market We of that the and equity realistic. the really of is therefore, is how I bit demand great the side good really to anymore. equity weird

do your pie is over year to pie how basis which So How next you years? much versus question I'm driven by the really that going think sustainable attractive just asking can really increasing much increase XXXX. the the FFO several be is on looks growth, a XXXX in and a year it and over about how that you

of been discussions, future. looking number many have go out years, growth. a for far There's into into factors we as we've is many, had previous on that what the And focused

take more we When access area. about down we on as advantage tested is the take in for we they of we we time unwinds access many But the the XXXX are softens that We ourselves more if there we a can many concept significantly with limitation development. building and growth concept, balance numbers significant supply build and are we end retail from now lots. in capital product. are be a those have that many, the our We're bit if acquire future prepared and is growth of start those remarks, a do years. then have inventory the our houses starting the opportunities. fact we showing We more that by sheet for than got Today, comfortable went in channels. open today. to little available, and And been And channels year. Today, expand. period become went that land. through the to basically underwrite their lot balance putting do the up about people homebuilders to But dependent other and there rent able control deliveries have from lots for in talked normalized of position acquisition We are rent to to deliveries. we side build control so can through the in homes. sheet we a going to That's And we XX,XXX the more of can't COVID future the advantage to We land.

good very have currency. We

flow. of target have capacity We EBITDA, million $XXX or our have amounts times internal X.X are of facilities more today we on hitting debt cash concerned of retained before our about significant we

the capital. have we So

for accelerated inventory land are building growth the in future We years.

see very development going to But that's have the be are come more So to and But what to now seeing real very market. in XXXX, where is is in XXXX. inventory XXXX, we'll significant we're very, then to well. excitement as the active we me than between that going to XXXX going you're

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

approach the much appreciate balance I much entrant percent has year. it hear the on of specifically had on like on development, limit growth, the I and to congratulations again, very focus a as to a to company the develop the feels development want wanted of continue great sheet. how into side. week, the And about your a on you we each Dave, sector, First, new disciplined

that But you us I at you really or about point, X%. potentially on thoughts feel guess, can think your with this mentioned mean, that with board, expanding share you disciplined? staying about talked or as online, I you strongly I internally increasing your

are hold clarify inventory targeting are asset Yes, The to just It’s on that's that our kind the a holding. basically productive targeting balance from of start in -- what let we're the with. was land. for me non an X% we X% to form as growth, in asset that is what land of not we allocation that's sheet

land there's more sheet. number them, we're to of can through. ways than going different And As them fast actually we as can turn control actually we that a our we on balance build what hold

growth Although, a side is we're really process. yet. couple phased The there not

of what good targets for talked We find now have is that are be the we have we growth. targets it we ability grow, acquisition. are, the what can And proof taking we find if teams to about all land of for will future can we And concept, for and proof it. land our deliveries do future But phase, land in our than grow acquiring grow, starts land. with additional

So we're a limitation that. not on putting

means to We will find acquire that.

right to feedback development platform, that build the better feedback house very, of things et just that allows rental. -- is to has to us bit circle date a coming our operating We're part of this a development into There think, is. cetera. miss. But to the copy. the entrants some I that's us thing our may it. that of we only second it's it's difficult that, without that it's helps I copy development question, to and from that's side we very little benefits. done, side, market. guess done because very now process And gives also people to working tied it's It an important The want what a of many the a have that it both validation But for company have synergistic its circle to you maintenance platform other was a your about ability

So we're that the company combines two. only the

you X,XXX really with even really that growth. exciting X% looking I a at just it's are and be will this. as the years are necessary And building past I infrastructure have head X,XXX inventories or the our we year on exciting. build to position land But today. where we're others homes. the be build we is We not years to indicate, looking many think But And to like in start year homes, XXXX ahead. more the great about

of one my can somewhat you've expectations. at covered sector longer sensitive to somewhat is Initially, this then to rate And far need and rate follow-up sensitive mean, Kind year, question far been is years. concern? the you a a level I for no you peers there I how you and on exceeded push rental to many were your how be or point past still you're that's the where think pushing rates.

I demand a that very and Normally, think there's talking summertime, that's a certain is saw seasonal about. we've that we couple the growth that It's The function were around the pronounced. rate to of months we've been throughout of during fantastic year. entire great question. parts extremely the extended seen demand

Our retentions even improved, And so on capitalized our re-leasing gotten really rates. the we've tighter. market's on that

the premarketing XXXX. we're of of kind They're internal how handle really on into our the a no there's re-leasing are rates, and going we're rates out. of putting growth that fantastic. the turns function really, cap So really seeing there. it's efforts we're to to market, good The continuing accelerate And quality re-leasing

for to different to existing On growth there's the but We've they're a to rates slight residents. the more side, really offering there number what rates a historical, on high quite pushed fantastic at is renewal in same terms you're of renewal there. looking of seen and being the We're compared reasons. a limit not bit difference sensitivity the little

about that them. that and excited rates rates that the So We're answers the growth question. very also the happy re-leasing and I seeing renewal hope rates with accompany the your pretty in we're retention

the line of St. is come question next from Our Haendel

Mizuho. with Juste

development year, of But latest guess, going planning north it delivery. this you're and on your to the X,XXX same. of should you've been getting you first, stay the looks that guidance I like this homes So target mentioned to yields back deliver the yield batch X% well

X% right still bit quarter you into fourth then into labor speak bit XXXX what the for XXXX of can built yields, level the in to cost deliveries? achieved a a bogey? And specifically, inflation of is the more underwriting So here and specificity costs color, if more Thanks. what was the for is overall, and material

are mentioned. as we seeing Bryan we are growth, has rate Yes,

our So pro rates. we're above leasing forma rental

it in benefit a underwrite getting gross gone yields. likely expense the to to little you we're the hasn't played higher can they've taxes two, of the totally get first talk Right yields, because house. now, year the or up out. because we value So part the as only already really property Generally if of I

it takes to sometimes the or sometimes, a for And two three even municipalities catch up. or year

-- if turns turn to be going the I'd don’t were, they So have I but so plus you yields, said overstating not costs. have you're

four actually years cost good have the or you expense so on you on And side, three before or really data really the side. have probably

On said, we're up. cost the seeing, like lumber side, going I

pretty larger we're other gotten and actually going inflation. more decrease labor up of But that slight terms a the gotten they're with In seeing . costs, we've we've efficient much because

obviously, really recently on seeing because And is what The going underwrite so any bit up. paid. we're land produced little other that's actually of lumber. the land at a accelerated cost that the benefit cost we than haven't But land And side we on it. with and land we has houses

could that here. the here. what's what's vary new in of thumb market, curious Understanding good rule a the the homes And of lease-up overall, [concession] average by just but

average zero. The concession is

math… Easy

on fantastic new the communities. had results We've

these incentives excess or to had haven't to resort concessions any up. commissions We to lease or

In these are pretty pace. pre-leasing rapid fact, it's at of been the communities opposite. a A lot

how past, were zones through on when the their construction and get educated we things, in have front back building as to quite we weren't drive were we these homes. some people having to to build Haendel, to to

our pricing XXXX problems And so offer to we learned front some for probably everything residents. our and point. and But that not pioneer back has since did been creating at we’ve lesson those

end up those by and you do follow you. you sit get homes. on release think of XXXX? to where those Can to talk and a days about Thank opportunity the where that And turn times to

the turn high in But We're XXs homes the it in We've past. seen XXs on heightened cash the to in nice gain from become move there re-lease out because period in. more really times. We from in A on call on down improvement compressed periods the these marketing payment of our cash to of comparable payment efficient we preparing the level now, demand. have big for as well. is on move

the improvement, for some in room I a in but a high that hard time, start. So are function, said, XXs we ton. on re-leasing not the pushing we're has sitting pretty too, rates that There's at a like

So past the there gains or we've To that's XXs. the year summarize, for low improvement, but even opportunity why so. not in over they're made fantastic is

question Our from Goldman Sachs. is of Skidmore come Rick next the line with

that just in the midpoint color guidance to guidance. bit number Chris, all you that pipeline, new annualizing the of about Can -- guidance or of in in be doesn't build quarter incorrect what's and would the trying homes is figure what you million essentially you're what the the the Thanks. to fourth But million how I just on about little repeat to that talking in $X.XX core quarter that fourth of rent built in all quarter number, that Because off FFO a development if conservative out X,XXX fourth rate. you're sort much the talk appreciate $XXX $XXX expectation. range?

think I used No, you word. the right

think to basis. X% the Our fact that guidance hopeful year that know a to prudent largely we to in and uncertainty, uncertainty that's ahead, are that I'm and And at this debt position area just is the intentionally beat given look, that, the And conservative take. full point. assuming given be bad the X.X% the optimistic on but we don't able we will we

holding that really, guidance we're basis. on that And is so and the area primary built year of a that fact conservatism into full our the

is seasonal. do to turn quarter. of and year the annualize doing the because seasonal quarter. in still flow the modeling The as are business in the is maybe you're and trying heavier the tied And still thing expenses second mind which more as when third seasonal, but the in equally saw not keep days, leasing activity, through to early And not and other fourth to we they

because been just entire and right year. much the results than that for the necessarily always historically of stronger give So have quarter fourth you quarter third normal in and first mind, quarter Keep the the second seasonality. annualizing fourth doesn't

pacing And then follow-up delivery terms the of X,XXX XXXX? those Thanks. development, just that just a How of through the on think about deliveries. of in the just pacing of we homes should there,

and quarter. Yes, over it's little will second quarter. each the more There a more ratable in going delivered be third be to

the But not So past we to meet little period a first or that valleys. seen in less probably and of the and time fourth. spikes the high that going there's demand in for be we've the

come questions of Rahmani line the next Jade from Our KBW. with

operational place this that, with, include been business. With put that's you the revenue or not [Indiscernible] could you into, work [rent] operation expertise, XX% but do about attach for are long one and has efforts, you at quarter a orders a gross develop built of experience a revenues of on these stream, the secondly, the with believe, a homebuilders have house. sale new management and create the the built where this workforce margin, in the homebuilder also which sold, AMH And the interested for to the capital. to very is property rent then they along not adding have could business thing and in that high Are XX% knowledge, Because that last only platform, duration to return all know probably point dimension And stream sell something communities? this community [Indiscernible]? like I they time, in that I done explored

that you're at? value sheet that make be accelerate light, more balance looking to two revenue add shareholders would So streams Is something growth. a and that and operation efficient

it's launch a as to would and are. you think are of are we of until about it, way same we a kind good business. prepared out what they yes, But ready of well. And talk don't see very I summary considering say, the would there, think I the of to opportunities number it did ancillary different what avenues we're we're I

Certainly seems opportunity. an attractive like

bad in coming turnover growth. newer has your COVID you consider over the demand would between level with question of just expense homes higher these to and essence, a their turning XX% which resiliency latency high more discrepancy to the Do tenants be The upgrading mean, debt that terms effect, which about be a of in would because it's Second ratio. this just for that rent and portfolio, are you're pay in ability matter they [have] a post tenants.

more, on rent explains what bad based would over would what a period year or really between debt and to? it that the distinction bad So growth economy, normalize. else attribute or higher the Is the maybe debt three the you

right coming upgrade. that each resident the into use I underwritten keep about portfolio, think I I into portfolio that's household mind being would word the absolutely think No, new. necessarily the that's in freshly the can to you there way directionally, But for know don't it. new that and coming

consideration So there. absolutely

type years our of going intentional you one to right churn, in I for they think be working and we of mind, to debt level optimistic keep any very, experience bad this if COVID outcome not headwind. will, we're finding about if that the And through a work three with residents them of it's impacts. very are each of

that year tenants that a so through and each I are Bryan those as freshly team continue time doing that, to doing through through the work way above it come residents get that's everything about And working churn. line. into residents bad down one job work underwritten normal a we we're great Again, of can. And new and I so the think our to that the don't see average, with coming year debt of see being three we this portfolio. right to through think levels it we over will time comprising should or above ahead,

working situation that revert situations. is ongoing this single a there pandemic given And huge what to the I it the tenants. been you pre understand now you tenants. it has proposition have not pandemic people -- long temporary also elevated pandemic I a will on living. family of And from not a X%. back very, seen that pandemic, Many affected this And just term changed. in aren't saw some event. tied the or a And are strong of It's is will just sub And benefit. has demand. with that more the get not that by the would us, and grade expect But them had value reverse them. that add tenants a the levels in unfortunate be tenants benefit we been all are X% debts is a the to and spotlight would unique and the has this we bad number enhanced that that lower are has necessarily and will rental very the It's remain them that and anything

I they that to have unwinding, remain to expect So today levels starts the I and bad are the in very, remain of as debts until kind demand do bad expect we very pandemic that naturally will well. the strong. debt unwind

future. So I see for in opportunity it more and as a us bump an of speed the

will it unwinds, the that benefit line. bottom As

Our line with Choe is of Suisse. next from come Crédit question the Sam

quarter year. the the and on Congrats

on Just rental growth. following the up rate

think are the you side Bryan the rent. can questions I renewal on kept on one raise on there that that mentioned factors of amount

mindful to are if I'm despite So other to potential HOA we some there or activity, strong just such leasing limitations, restrictions know rental curious as factors need be of?

was right X%. at is would tested our retention. improved I them is a increases. was we're restriction now dramatically on only we big that side, There's renewal of to these with there that legislative between residents but growth. renewals our or is renewal of interacting on term What little long capped renewals that gap state reasonableness the we're way increase with The more really bit of that the which things a have and to annual outs. benefit re-leasing market our relationships not Washington, And referring is in and rate the to a our the We've marking move certain

you what your on those in I’m up going portfolio XXX strong all building density have had make I category, XXXX, mostly I'm XX homes in additions been your property from market Just seeing on think. markets, scale forward other Because the in areas? the business additions did that around better. seeing your are plans that speaking you What about which making

last year that of rate of development in didn't much but scale and we that some migration XXX property markets through example. And seeing is on. for growth. growing perfect development. we have gain we early I in to many lots program, are Boise good They're there XX, value didn't future and about a is the add We the Boise think growth a other lot as

I I So eventually. couple other the of to where there's out come to expect And category that come eventually. would other expect of markets them other out the a category

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

aggressive? some next of Jack rent you vintages pricing your the of few rent the expect to and be built on built communities, do competitors comes, of is Dave, or these early to or years too over a consolidator to

are makes asset standpoint, see standpoint. rent will it but sense building also of there what say will a We're that's portfolio, all people built a I know acquirers quality they and at I of a to number pricing wait from our that finding location as homes are do looking to that be. and the a difficult they're to that and both and pricing manage. standpoint of for a opportunities

reasonable priced yes, become in So those they we'll those. And if at opportunities a at the future. plentiful may be acquiring price, are looking

Is look interpret like could you on do take as of for a Phoenix, you up revenue growth? or see XX%. organic markets markets Bryan, question enhancing at a CapEx this then, And these any we in spreads. I re-leasing

to contributing growth. into in of XX the with results Phoenix very year. fantastic organic rate neighborhood The small, CapEx The basis growth we of that it is points growth. probably XX is to still continuing happy this revenue is that component rate Most enhancing program. still are of in But outsized the

speak, We that. the to hot, have growth to markets so though other that are organic major contributor is the equally

next Our from of Associates. is come line & McGill with question Dennis the Zelman

First land just side. on the question,

day think, to, I year. I the to the about the control of versus incremental structure are a or that from and also just done respect you're you lots a you're that Can Thanks. controlling was XX,XXX finding finding XX,XXX signing versus today on of and had little think, contracts to with inflation? much just option on You by of XX,XXX go incremental land end products respect then to detail that provide the going what what bidding a to how to those an developed with mentioned,

So in There's show additional we in sheet. X,XXX, we additional an homes the on of X,XXX own balance X,XXX escrow. that terms the

used yet. point. will options not some probably at have We We

So add those we lots to XX,XXX controlled. expect to

I to controlling expect another bring that X,XXX deliver We down year. about as buy acquisitions it on more sophisticated get X,XXX and our necessary. lot expect the to we'll lots during X,XXX, or

hesitation far? thus the contracts with been What's using option

we of proof in place. infrastructure and concept we capacity haven't in were early phase needed to. of getting date, To we of had doing and now We've our on sheet. an more balance -- But the that

Now number in are being being that discussions contracts contracts. option up, ramped it's are -- of we about a today option

I life the just So cycle. It's hesitation. are in a it's where think we not

And then a separate question.

number year up have you wanted was you out up, also share of from and out the think mentioned I had of then applicants I on to I XX%, the think, of year application but both And state from clarify said the period? this ago that. you if state

from to of year-over-year. that's to XX% on from of Yes, I someone people of up kind eliminate states were I kind in and mentioned North -- new portfolio noise so non Carolina a added the The coming metric my AMH Carolina prepared South moving from remarks. XX% growth

of So from are our it's non AMH over coming XX% states. applicants

year? And Bryan, year a how this ago have compared would to that

A in Xs, XX%. over the year ago

questions BTIG. with come Gilbert line the next Our from Ryan of

question Just your And turnover. me for Bryan, one the tenants. you regarding stickiness the appreciated I commentary of around made

tick you XXXX. occupied I down days like that did a might turnover think January in a looks of mentioned from bit fourth quarter in expenses the XXXX. the And average remarks, prepared up tick it bit

trends just what portfolio regarding I'm outs move year? you're we think wondering, how that as go year to and date in the your you and through seeing So turnover

strong. would Retention a in fourth terms occupancy. movement slight any of At remains continuation of XXXX, be of really the it's very quarter, start

turnover think I the practices additional prepared the specifically return costs collection when normal. to to referring in I remarks, was

little trading occupancy of including improvements expectations. be exactly to in in that's heightened in bad that some costs going but to bit and to going our the were you're happen we wanted make not in cautious for that So sure when debt We're sure we long a being term.

the Berenberg. line next Keegan question of come Our Carl with is from

I'm that have have impact would your some eviction night as that states about any kind moratoriums flow and on moratorium specific last long a should a say. of the in unconstitutional, the this see thoughts portfolio final curious quick If material this? me. you happens, your There's news state do of just So a of term. one on for kind CDC being result

it regardless, on very, judge it's I Austin up-to-date event the really Dallas, to we very Yesterday, actually of a about doesn't who You're have properties. eviction in which few only with have district this about occurring. our And the means eastern moratorium resort. impacted did have of tenants talked got entire the the that some evictions And Plano talked It that's here the about what's time or we Doesn't hopefully, COVID in anybody comments prepared properties. very company district But Bryan's your is or able been has Antonio only valid at And issues. market, a eastern in CDC for tenancy. Texas, in we overall the can of time. declare San that Northern having we last the impacts out discussion good impact the a remarks the do being CDC work been and district, place think and relationships Fort impact the Worth, Dallas, unconstitutional. we've with

long be unwind economy, play get evictions I COVID think really how in and will the this to But foresee short period point. don't that ways and so the very starts even process. normal. in it, at any time see changes collection back very, I not sparingly in And And in the there We'll major in eviction term. term to the many we'll we'll a use where maybe into

over comments. I to any further are like Singelyn this call time. for There turn you. Thank David the at closing no to would back questions

to call. Thank drive to I'm quarter more year the talk we next and of excited to we'll this Bye, about and today. years for again. the all for talked you, on thank this you and operator, opportunities shareholders you our you growth bye. your time come, about for to importantly, Thanks

This Thank you conclude for teleconference. today's your participation. does

a Have You may great day. disconnect this. lines at your