American Homes 4 Rent - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - August 4, 2014

Attached files

file filename
8-K - FORM 8-K - American Homes 4 Rentv385730_8k.htm
EX-99.1 - EXHIBIT 99.1 - American Homes 4 Rentv385730_ex99-1.htm
EX-99.2 - EXHIBIT 99.2 - American Homes 4 Rentv385730_ex99-2.htm

 

Exhibit 99.3

 

 

Second Quarter 2014

 

Supplemental Information Package

 

 

 

 

 

 

 

 

 

 

 
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Table of Contents

 

Summary  
Financial and Operating Highlights 3
Fact Sheet 4
Notes to Fact Sheet 5
   
Earnings  
Quarterly Consolidated Statements of Operations 6
Funds from Operations and Core Funds from Operations 7
Net Operating Income and Core Net Operating Income 9
   
Property Information  
Top 20 Markets Summary 11
Top 20 Markets Home Price Appreciation Trends 12
Leasing Experience 13
   
Operational Information  
Acquisition, Renovation and Leasing Rates 14
Portfolio Footprint Map 15
   
Other Information  
Beazer Rental Homes Portfolio Summary 16
Beazer Rental Homes Portfolio Footprint Map 17

 

2
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Financial and Operating Highlights

 

Second Quarter 2014 Highlights

 

·Core funds from operations (“Core FFO”) (as defined) for the second quarter of 2014 were $35.3 million or $0.15 per FFO share.

 

·Net operating income from leased properties (“NOI”) for the quarter ended June 30, 2014 was $57.1 million, a 19.7% increase from the $47.7 million reported for the first quarter ended March 31, 2014.

 

·Total portfolio increased by 1,668 homes to 27,173 as of June 30, 2014 from 25,505 as of March 31, 2014. As of June 30, 2014, the Company had 23,364 leased properties, an increase of 2,698 properties from March 31, 2014.

 

·Continued strong occupancy with 94.7% of properties leased that have been previously leased or rent-ready for more than 90 days and total portfolio occupancy of 86.0%.

 

·Completed securitization transaction in May 2014, raising gross proceeds of $481 million, with a duration-weighted blended interest rate of LIBOR plus 154 basis points.

 

·Subsequent to quarter-end, the Company completed the acquisition of Beazer Pre-Owned Rental Homes, Inc. ("Beazer Rental Homes"). The acquisition added more than 1,300 homes located in markets in Arizona, California, Florida and Nevada to the Company's portfolio. Including the homes acquired from Beazer Rental Homes, the Company acquired over 2,000 single family properties in July 2014, increasing the total portfolio to over 29,200. Leased properties increased by over 2,000 in July, including the leased homes from Beazer Rental Homes, increasing the number of leased homes to nearly 25,500 or approximately 87.0% of the total portfolio.

 

3
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Fact Sheet

(Amounts in thousands, except share, per share and property information)

(Unaudited)

 

   Jun 30,
2013		   Sep 30,
2013		   Dec 31,
2013		   Mar 31,
2014		   Jun 30,
2014		 
Operating Data - for the three months ended                    
Rents from single-family properties  $17,020   $47,364   $61,843   $73,761   $88,871 
Fees from single-family properties  $690   $1,476   $1,409   $1,358   $1,889 
Tenant charge-backs  $47   $323   $1,218   $1,890   $3,138 
Total revenues from single-family properties  $17,757   $49,163   $64,470   $77,009   $93,898 
Total revenues  $18,120   $49,463   $64,890   $77,278   $94,304 
Leased property operating expenses  $6,859   $17,579   $24,470   $29,266   $36,790 
Net operating income (1)  $10,898   $31,584   $40,000   $47,743   $57,108 
Net operating income margin(1)   61.4%   64.2%   62.0%   62.0%   60.8%
Core net operating income margin(1)   61.9%   65.2%   65.0%   64.8%   63.6%
General and administrative expense and                         
advisory fees as a percentage of total revenues   24.4%   5.5%   5.7%   6.6%   6.0%
Annualized general and administrative expense and                         
advisory fees as a percentage of total assets   0.51%   0.28%   0.35%   0.45%   0.46%
                          
Selected Balance Sheet Information - at end of period                         
Single-family properties, net  $3,039,504   $3,530,122   $3,861,422   $4,218,654   $4,483,794 
Total assets  $3,482,695   $3,885,261   $4,224,144   $4,524,033   $4,982,557 
Outstanding borrowings under credit facility (2)  $670,000   $238,000   $375,000   $671,000   $481,000 
Asset-backed securitization  $-   $-   $-   $-   $480,970 
Total liabilities  $831,359   $395,968   $573,485   $889,925   $1,216,362 
Total equity capitalization (3)    n/a    $3,861,700   $4,101,227   $4,230,122   $4,671,212 
Total capitalization (4)    n/a    $4,099,700   $4,476,227   $4,901,122   $5,633,182 
NYSE AMH Class A common share closing price    n/a    $16.15   $16.20   $16.71   $17.76 
                          
Portfolio Data - at end of period                         
Leased single-family properties   10,245    14,384    17,328    20,666    23,364 
Single-family properties in acquisition process   824    549    731    805    577 
Single-family properties being renovated   5,250    3,598    1,732    1,466    1,179 
Single-family properties being prepared for re-lease (5)    n/a      n/a     281    508    656 
Vacant single-family properties available for lease   2,007    2,736    3,152    2,019    1,361 
Single-family properties held for sale   -    -    44    41    36 
Total single-family properties   18,326    21,267    23,268    25,505    27,173 
Total portfolio occupancy   55.9%   67.6%   74.5%   81.0%   86.0%
Available for rent 30+ days occupancy (6)   89.7%   89.6%   90.1%   92.1%   93.6%
Available for rent 90+ days occupancy (7)   96.7%   96.2%   94.5%   95.1%   94.7%
Quarterly lease renewal rate   68.3%   73.0%   73.4%   71.8%   72.0%
                          
Other Data                         
Distributions declared per common share  $-   $-   $0.05   $0.05   $0.05 
Distributions declared per Series A preferred share  $-   $-   $0.23   $0.31   $0.31 
Distributions declared per Series B preferred share  $-   $-   $-   $0.35   $0.31 
Distributions declared per Series C preferred share  $-   $-   $-   $-   $0.23 

 

4
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Notes to Fact Sheet

 

(1)Refer to Net Operating Income and Core Net Operating Income section for calculation details and related reconciliations to net income / (loss), as determined in accordance with Generally Accepted Accounting Principles.
(2)Our credit facility provides for borrowing capacity of up to $800 million and bears interest at 30 day LIBOR plus 2.75% (3.125% beginning in March 2017). Borrowings are available until March 2015, which may be extended for an additional year subject to the satisfaction of certain financial covenant tests. Upon expiration of the credit facility period, any outstanding borrowings will convert to a term loan through September 30, 2018.
(3)Total equity capitalization includes common and preferred shares outstanding at the end of respective period and 13,787,292 Class A units, 31,085,974 Series C units, 4,375,000 Series D units and 4,375,000 Series E units.
(4)Total capitalization includes equity capitalization, principal balance on asset-backed securitization and borrowings outstanding under our credit facility at end of respective period.
(5)Single-family properties being prepared for re-lease not measured as of June 30, 2013 and September 30, 2013 due to insignificant number of properties in turn-over process during such periods.
(6)Available for rent 30+ days occupancy is calculated at the end of each respective period as the number of leased properties divided by the number of leased properties after we have completed initial renovations or are available for rent for a period of greater than 30 days.
(7)Available for rent 90+ days occupancy is calculated at the end of each respective period as the number of leased properties divided by the number of leased properties after we have completed initial renovations or are available for rent for a period of greater than 90 days.

 

5
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Quarterly Consolidated Statements of Operations

(Amounts in thousands, except share and per share information)

(Unaudited)

 

   For the Three Months Ended 
   Jun 30,
2013		   Sep 30,
2013		   Dec 31,
2013		   Mar 31,
2014		   Jun 30,
2014		 
Revenues:                
Rents from single-family properties  $17,020   $47,364   $61,843   $73,761   $88,871 
Fees from single-family properties   690    1,476    1,409    1,358    1,889 
Tenant charge-backs   47    323    1,218    1,890    3,138 
Other   363    300    420    269    406 
Total revenues   18,120    49,463    64,890    77,278    94,304 
                          
Expenses:                         
Property operating expenses                         
Leased single-family properties   6,859    17,579    24,470    29,266    36,790 
Vacant single-family properties and other   4,391    7,873    8,348    9,043    6,351 
General and administrative expense   811    2,742    3,667    5,074    5,703 
Advisory fees   3,610    -    -    -    - 
Interest expense   -    -    -    1,502    3,888 
Noncash share-based compensation expense   279    153    473    532    612 
Acquisition fees and costs expensed   2,099    496    814    452    919 
Depreciation and amortization   10,879    24,043    33,160    35,131    38,325 
Total expenses   28,928    52,886    70,932    81,000    92,588 
                          
Gain on remeasurement of equity method investment   10,945    -    -    -    - 
Remeasurement of Series E units   -    (438)   (1,619)   (2,756)   (4,944)
Remeasurement of Preferred shares   -    -    (1,810)   (457)   (141)
                          
Income / (loss) from continuing operations   137    (3,861)   (9,471)   (6,935)   (3,369)
                          
Discontinued operations                         
Gain on disposition of single-family properties   904    -    -    -    - 
Income from discontinued operations   82    -    -    -    - 
Total income from discontinued operations   986    -    -    -    - 
                          
Net income / (loss)   1,123    (3,861)   (9,471)   (6,935)   (3,369)
                          
Noncontrolling interest   4,664    3,798    3,888    3,620    4,212 
Dividends on preferred shares   -    -    1,160    3,121    4,669 
Conversion of preferred units   10,456    -    -    -    - 
                          
Net loss attributable to common shareholders  $(13,997)  $(7,659)  $(14,519)  $(13,676)  $(12,250)
                          
Weighted average shares outstanding - basic and diluted   95,971,706    162,725,150    185,499,066    185,504,294    185,515,651 
                          
Net loss per share - basic and diluted:                         
Loss from continuing operations  $(0.16)  $(0.05)  $(0.08)  $(0.07)  $(0.07)
Discontinued operations   0.01    -    -    -    - 
Net loss attributable to common shareholders                         
per share - basic and diluted  $(0.15)  $(0.05)  $(0.08)  $(0.07)  $(0.07)

 

6
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Funds from Operations and Core Funds from Operations

(Amounts in thousands, except share and per share information)

(Unaudited)

 

The following is a reconciliation of net loss attributable to common shareholders, determined in accordance with Generally Accepted Accounting Principles (“GAAP”), to FFO and Core FFO for the three months ended September 30, 2013, December 31, 2013, March 31, 2014 and June 30, 2014 (amounts in thousands, except share and per share information):

 

   For the Three Months Ended 
   Sep 30,   Dec 31,   Mar 31,   Jun 30, 
   2013   2013   2014   2014 
Net loss attributable to common shareholders  $(7,659)  $(14,519)  $(13,676)  $(12,250)
Adjustments:                    
Noncontrolling interests in the Operating Partnership   4,028    3,718    3,715    4,140 
Depreciation and amortization of real estate assets   23,211    31,702    33,827    36,793 
Funds from operations  $19,580   $20,901   $23,866   $28,683 
Adjustments:                    
Acquisition fees and costs expensed   496    814    452    919 
Noncash share-based compensation expense   153    473    532    612 
Remeasurement of Series E units   438    1,619    2,756    4,944 
Remeasurement of Preferred shares   -    1,810    457    141 
Core funds from operations  $20,667   $25,617   $28,063   $35,299 
Weighted average number of FFO shares (1)   216,348,416    239,122,332    239,127,560    239,138,917 
FFO per weighted average FFO share  $0.09   $0.09   $0.10   $0.12 
Core FFO per weighted average FFO share  $0.10   $0.11   $0.12   $0.15 

 

(1)Includes quarterly weighted average common shares outstanding and assumes full conversion of all Operating Partnership units outstanding, including 13,787,292 Class A units, 31,085,974 Series C units, 4,375,000 Series D units and 4,375,000 Series E units.

 

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 recent 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.

 

7
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Funds from Operations and Core Funds from Operations (continued)

 

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 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.

 

8
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Net Operating Income and Core Net Operating Income

(Amounts in thousands)

 

   For the Three Months Ended 
   Jun 30,
2013		   Sep 30,
2013		   Dec 31,
2013		   Mar 31,
2014		   Jun 30,
2014		 
Net Operating Income                
Rents from single-family properties  $17,020   $47,364   $61,843   $73,761   $88,871 
Fees from single-family properties   690    1,476    1,409    1,358    1,889 
Tenant charge-backs   47    323    1,218    1,890    3,138 
Total revenues from single-family properties   17,757    49,163    64,470    77,009    93,898 
                          
Leased property operating expenses   6,859    17,579    24,470    29,266    36,790 
                          
Net operating income  $10,898   $31,584   $40,000   $47,743   $57,108 
Net operating income margin   61.4%   64.2%   62.0%   62.0%   60.8%
                          
Core Net Operating Income                         
Rents from single-family properties  $17,020   $47,364   $61,843   $73,761   $88,871 
Fees from single-family properties   690    1,476    1,409    1,358    1,889 
Bad debt expense   (100)   (417)   (1,748)   (1,423)   (962)
Core revenues from single-family properties   17,610    48,423    61,504    73,696    89,798 
                          
Leased property operating expenses   6,859    17,579    24,470    29,266    36,790 
Expenses reimbursed by tenant charge-backs   (47)   (323)   (1,218)   (1,890)   (3,138)
Bad debt expense   (100)   (417)   (1,748)   (1,423)   (962)
Core property operating expenses   6,712    16,839    21,504    25,953    32,690 
                          
Core net operating income  $10,898   $31,584   $40,000   $47,743   $57,108 
Core net operating income margin   61.9%   65.2%   65.0%   64.8%   63.6%

 

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. Core NOI is also a supplemental non-GAAP financial measure that we define as rents and fees from single-family properties, net of bad debt expense, less property operating expenses for leased single-family properties, excluding expenses reimbursed by tenant charge-backs and bad debt expense.

 

NOI and Core NOI also exclude income from discontinued operations, remeasurement of preferred shares, remeasurement of Series E units, gain on remeasurement of equity method investment, depreciation and amortization, acquisition fees and costs expensed, noncash share-based compensation expense, interest expense, advisory fees, general and administrative expense, property operating expenses for vacant single-family properties and other and other revenues. 

 

9
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Net Operating Income and Core Net Operating Income (continued)

(Amounts in thousands)

 

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. Additionally, we believe Core NOI is helpful to our investors as it better reflects the operating margin performance of our leased single-family properties and excludes the impact of certain operating expenses that are reimbursed through tenant charge-backs.

 

NOI and Core NOI should be considered only as supplements to net income / (loss) as measures of our performance. NOI and Core NOI should not be used as measures of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. NOI and Core NOI also should not be used as substitutes for net income / (loss) or net cash flows from operating activities (as computed in accordance with GAAP).

 

The following is a reconciliation of NOI and Core NOI to net income / (loss) determined in accordance with GAAP:

 

   For the Three Months Ended
   Jun 30,
2013		   Sep 30,
2013		   Dec 31,
2013		   Mar 31,
2014		   Jun 30,
2014		 
Net income / (loss)  $1,123   $(3,861)  $(9,471)  $(6,935)  $(3,369)
Income from discontinued operations   (986)   -    -    -    - 
Remeasurement of Preferred shares   -    -    1,810    457    141 
Remeasurement of Series E units   -    438    1,619    2,756    4,944 
Gain on remeasurement of equity method investment   (10,945)   -    -    -    - 
Depreciation and amortization   10,879    24,043    33,160    35,131    38,325 
Acquisitions fees and costs expensed   2,099    496    814    452    919 
Noncash share-based compensation expense   279    153    473    532    612 
Interest expense   -    -    -    1,502    3,888 
Advisory fees   3,610    -    -    -    - 
General and administrative expense   811    2,742    3,667    5,074    5,703 
Property operating expenses for vacant                         
single-family properties and other   4,391    7,873    8,348    9,043    6,351 
Other revenues   (363)   (300)   (420)   (269)   (406)
Net operating income  $10,898   $31,584   $40,000   $47,743   $57,108 
Tenant charge-backs   47    323    1,218    1,890    3,138 
Expenses reimbursed by tenant charge-backs   (47)   (323)   (1,218)   (1,890)   (3,138)
Bad debt expense excluded from operating expenses   100    417    1,748    1,423    962 
Bad debt expense included in revenues   (100)   (417)   (1,748)   (1,423)   (962)
Core net operating income  $10,898   $31,584   $40,000   $47,743   $57,108 

 

10
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Top 20 Markets Summary

 

The table below summarizes certain information with respect to our top 20 markets as of June 30, 2014:

 

Market  Number of
Properties		   Percentage
of Total
Properties		   Gross Book
Value
($ millions)		   Percentage
of Gross
Book Value		   Gross Book
Value per
Property		   Average
Sq. Ft.		   Avg. Age
(years)		   Leased
Properties		   Occupancy
Percentage		 
Dallas-Fort Worth,TX   2,493    9.2%  $394.6    8.6%  $158,265    2,148    10.7    2,268    91.0%
Indianapolis, IN   2,364    8.7%   351.5    7.6%   148,706    1,916    11.9    1,971    83.4%
Greater Chicago area, IL and IN   1,723    6.3%   282.1    6.1%   163,751    1,886    12.8    1,363    79.1%
Atlanta, GA   1,655    6.1%   275.0    6.0%   166,142    2,142    13.5    1,456    88.0%
Cincinnati, OH   1,546    5.7%   265.6    5.8%   171,779    1,847    13.5    1,159    75.0%
Houston, TX   1,489    5.5%   257.6    5.6%   172,969    2,272    10.0    1,250    83.9%
Charlotte, NC   1,390    5.1%   234.1    5.1%   168,443    1,977    11.1    1,200    86.3%
Jacksonville, FL   1,153    4.2%   170.6    3.7%   147,998    1,922    10.3    970    84.1%
Nashville, TN   1,145    4.2%   234.3    5.1%   204,653    2,203    9.9    1,038    90.7%
Raleigh, NC   1,000    3.7%   177.8    3.9%   177,842    1,897    10.2    876    87.6%
Phoenix, AZ   962    3.5%   148.4    3.2%   154,229    1,811    11.8    878    91.3%
Columbus, OH   955    3.5%   142.6    3.1%   149,300    1,833    13.1    817    85.5%
Tampa, FL   900    3.3%   174.6    3.8%   194,012    2,047    10.9    786    87.3%
Salt Lake City, UT   765    2.8%   166.8    3.6%   218,076    2,185    12.7    697    91.1%
Las Vegas, NV   715    2.6%   123.6    2.7%   172,935    1,846    12.5    691    96.6%
Orlando, FL   681    2.5%   113.6    2.5%   166,782    1,932    13.1    605    88.8%
Austin, TX   528    1.9%   75.5    1.6%   142,965    1,869    10.2    389    73.7%
San Antonio, TX   439    1.6%   65.0    1.4%   148,090    2,024    9.8    366    83.4%
Greensboro, NC   433    1.6%   72.8    1.6%   168,196    1,935    10.5    388    89.6%
Greenville, SC   417    1.5%   69.8    1.5%   167,418    1,913    11.0    380    91.1%
All Other (2)   4,420    16.3%   814.7    17.7%   184,314    1,823    10.8    3,816    86.3%
Total / Average   27,173    100.0%  $4,610.7    100.0%  $169,679    1,969    11.5    23,364    86.0%(1)

 

(1)As of July 31, 2014, our total portfolio, number of leased homes and total portfolio occupancy have increased to over 29,200 homes, nearly 25,500 homes and approximately 87.0%, respectively.
(2)Represents 21 markets in 15 states.

 

11
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Top 20 Markets Home Price Appreciation Trends

 

       HPA Index (1)     
Market  Relative
Weighting of
Top 20 Markets (2)		   Dec 31,
2012 (3)		   Mar 31,
2013		   Jun 30,
2013		   Sep 30,
2013		   Dec 31,
2013		   Mar 31,
2014		   HPA Index Appreciation 
Dallas-Fort Worth, TX (4)   9.507%   100.0    100.7    105.8    107.2    108.6    109.2    9.2%
Indianapolis, IN   8.880%   100.0    104.1    107.9    110.9    107.5    108.1    8.1%
Greater Chicago area, IL and IN   7.679%   100.0    101.2    109.8    110.8    111.3    107.8    7.8%
Atlanta, GA   7.545%   100.0    103.9    111.1    114.1    114.9    119.2    19.2%
Nashville, TN   6.390%   100.0    102.3    107.1    108.1    110.4    110.9    10.9%
Houston, TX   6.312%   100.0    101.9    107.2    108.5    110.7    113.7    13.7%
Cincinnati, OH   6.119%   100.0    100.0    105.6    108.0    105.3    106.2    6.2%
Salt Lake City, UT   5.495%   100.0    104.3    109.6    110.1    109.1    110.1    10.1%
Tampa, FL   5.361%   100.0    99.9    107.5    110.5    112.0    113.5    13.5%
Charlotte, NC   5.354%   100.0    105.2    109.7    113.1    114.0    109.2    9.2%
Phoenix, AZ   5.270%   100.0    102.5    110.5    115.4    117.3    119.4    19.4%
Jacksonville, FL   4.776%   100.0    107.9    110.8    111.7    113.3    111.2    11.2%
Las Vegas, NV   4.371%   100.0    102.2    111.5    121.5    124.4    130.4    30.4%
Raleigh, NC   4.040%   100.0    103.2    105.7    107.4    106.5    108.8    8.8%
Columbus, OH   3.167%   100.0    102.4    107.7    111.8    109.3    110.7    10.7%
Orlando, FL   3.036%   100.0    100.0    107.7    110.2    110.3    111.3    11.3%
Tucson, AZ   1.867%   100.0    98.4    102.5    106.3    108.8    106.8    6.8%
Greensboro, NC   1.789%   100.0    102.6    104.7    105.2    103.1    104.0    4.0%
Austin, TX   1.550%   100.0    101.5    109.1    110.8    110.2    114.3    14.3%
San Antonio, TX   1.490%   100.0    99.0    100.3    100.9    100.4    104.3    4.3%
Total / weighted average   100.0%                                 11.8%

 

(1)HPA Index reflects the House Price Index of the Federal Housing Finance Agency (“FHFA”), known as the Quarterly Purchase-Only Index, specifically the non-seasonally adjusted “Purchase-Only Index” for the “100 Largest Metropolitan Statistical Areas.” Updates to the Quarterly Purchase-Only Index are released by the FHFA on approximately the 20th day of the second month following quarter-end. Accordingly, information in the above table has been presented through March 31, 2014, as the second quarter 2014 Quarterly Purchase-Only Index will not be available until approximately the week of August 20, 2014.
(2)Relative weighting of top 20 markets based on properties as of September 30, 2013, consistent with relative weighting used for purposes of computing the “HPA Factor” for our 5% Series A participating preferred shares, 5% Series B participating preferred shares and 5.5% Series C participating preferred shares as described in the prospectuses for those securities.
(3)For the illustrative purposes of this table, the HPA Index has been indexed as of December 31, 2012 and, as such, a baseline index value of 100.0 has been assigned to each market as of such date. The HPA Index values with respect to the other periods presented are relative measures calculated in relation to the baseline index value.
(4)Our Dallas-Fort Worth, TX market is comprised of the Dallas-Plano-Irving and Fort Worth-Arlington Metropolitan Divisions, with each division being given equal weighting for purposes of determining the HPA Index.

 

12
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Leasing Experience

 

The table below summarizes our leasing experience through June 30, 2014:

 

Market  Leased (1)   Available for
Rent 30+
Days (2)		   Available for
Rent 90+
Days (3)		   30+ Days
Occupancy % (4)		   90+ Days
Occupancy %(5)		   Average Annual
Scheduled Rent
Per Property		 
Dallas-Fort Worth, TX   2,218    2,299    2,289    96.5%   96.9%  $17,734 
Indianapolis, IN   1,963    2,172    2,109    90.4%   93.1%   15,142 
Atlanta, GA   1,428    1,513    1,507    94.4%   94.8%   15,955 
Greater Chicago area, IL and IN   1,338    1,433    1,407    93.4%   95.1%   19,504 
Houston, TX   1,201    1,263    1,249    95.1%   96.2%   18,718 
Charlotte, NC   1,196    1,237    1,228    96.7%   97.4%   15,957 
Cincinnati, OH   1,148    1,346    1,271    85.3%   90.3%   16,953 
Nashville, TN   1,011    1,064    1,062    95.0%   95.2%   18,086 
Jacksonville, FL   936    1,020    1,013    91.8%   92.4%   15,505 
Raleigh, NC   868    926    918    93.7%   94.6%   16,039 
All Other (6)   9,653    10,269    10,189    94.0%   94.7%   16,398 
Total / Average   22,960    24,542    24,242    93.6%   94.7%  $16,720 

 

(1)Includes leases on properties for which we have completed renovations and excludes leases with tenants existing at the date of acquisition.
(2)Available for Rent 30+ Days represents the number of properties that have been leased after we have completed renovations or are available for rent (i.e., “rent-ready”) for a period of greater than 30 days.
(3)Available for Rent 90+ Days represents the number of properties that have been leased after we have completed renovations or are available for rent (i.e., “rent-ready”) for a period of greater than 90 days.
(4)Occupancy percentage is computed by dividing the number of leased properties by the number of properties available for rent 30+ days from the date of completing initial renovations (i.e., occupancy percentage is net of vacancy associated with properties in turn).
(5)Occupancy percentage is computed by dividing the number of leased properties by the number of properties available for rent 90+ days from the date of completing initial renovations (i.e., occupancy percentage is net of vacancy associated with properties in turn).
(6)Represents 31 markets in 19 states.

 

13
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Acquisition, Renovation and Leasing Rates

 

 

 

“Rent Ready” includes properties for which initial construction has been completed during each quarter

“Leases Signed” includes the number of initial leases signed each quarter (includes Pre-Existing Leases)

 

14
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Portfolio Footprint Map

 

 

All properties in all markets are managed by AMH personnel.

 

 

15
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Beazer Rental Homes Portfolio Summary

 

 

Beazer Rental Homes  
1,372 homes owned 27,173 homes owned (3,551 in overlap markets)
7 markets 41 markets
4 states 22 states
Average property age of 10.0 years Average property age of 11.5 years
Average square foot of 1,934 per home Average square foot of 1,969 per home
Average monthly rent of $1,349 Average monthly rent of $1,393
Average rent / sf of $0.70 Average rent / sf of $0.71
90% + leased 86% leased (91% in overlap markets)

 

16
 

 

American Homes 4 Rent

Supplemental Information Package

Second Quarter 2014

 

Beazer Rental Homes Portfolio Footprint Map

 

 

17

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