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Investor HighlightsInvestor Highlights
November 2017
2
Forward-Looking Statements
Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of
historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success
of our strategies, plans or intentions. Forward-looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,”
“expect,” “intend,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. We have based these
forward-looking statements on our current expectations and assumptions about future events. These assumptions include, among others, our projections
and expectations regarding: market trends in the single-family home rental industry and in the local markets where we operate, our ability to institutionalize
a historically fragmented business model, our business strengths, our ideal tenant profile, the quality and location of our properties in attractive
neighborhoods, the scale advantage of our national platform and the superiority of our operational infrastructure, the effectiveness of our investment
philosophy and diversified acquisition strategy, our ability to grow our portfolio and to create a cash flow opportunity with attractive current yields and
upside from increasing rents and cost efficiencies and our understanding of our competition and general economic, demographic and real estate conditions
that may impact our business. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our
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 presentation,
November 13, 2017. We undertake no obligation to update any forward-looking statements to conform to actual results or changes in our 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 for the year ended December 31, 2016, the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, and the
Company’s subsequent filings with the Securities and Exchange Commission.
Non-GAAP Financial Measures
This presentation includes certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP)
because we believe they help investors understand our performance. Any non-GAAP financial measures presented are not, and should not be viewed as,
substitutes for financial measures required by U.S. GAAP and may not be comparable to the calculation of similar measures of other companies.
Legal Disclosures
3
AMH At A Glance ……………………………………………………….................. 4
AMH Strategy …………………………………………………………..................... 5
Single-family Rental Sector: Compelling Macro Landscape …... 6
Growth Strategy - How & Where We Invest ……………...................
• Foreclosure Auction/MLS
• Built for Rental Program
• Bulk/Portfolio Opportunities
• Where We Invest
7-10
AMH Operating Approach …………………………………………………....... 11
Financial Results …………………………......................................................... 12-15
Defined Terms ……………………………………………………………………....... 16
Atlanta, GA
Table of Contents
4
AMH At A Glance
50,015 high-quality
properties in 22
states (1)
Only Investment
Grade Rated
balance sheet in
SFR sector
95.3% Same-Home
October 2017
ending leased
percentage (3)
8.3% TTM avg.
Same Home NOI
after Capex
growth (2)
~ $220 million of
expected annual
retained cash flow
(1) As of or for the quarter ended September 30, 2017.
(2) Year-over-year percentage growth comparisons based on quarterly same-home populations presented in the Company’s supplemental for the respective period.
(3) Reflects a 0.1% increase over September 2017 as a result of a 13.3% increase in monthly signed lease activity compared to prior year. Ending October 2017 Same-Home
occupancy was 94.3%.
Average property
age of 14 years
Phoenix, AZ
Boise, ID
~ 1,000 employees,
of which over 700
are field based or
delivering customer
service
Best-in-class call
center and
proprietary
technology Net debt to TTM
Adjusted EBITDA of
4.2x (1)
$10.8 billion total
market
capitalization (1)
5
The AMH Strategy
OPERATIONS
STRATEGY
• Optimize AMH’s differentiated operating platform
• Balance centralized control and oversight, with local office touch
• Enhance operating efficiencies with innovative and proprietary technology solutions
• Management and execution of all stages of operational lifecycle with AMH internal personnel
GROWTH
STRATEGY
• Invest in AMH’s high growth markets and well diversified portfolio footprint
• Focus on high quality properties in desirable neighborhoods and highly rated school districts to attract ideal tenant profile:
(1) high credit quality, (2) propensity to stay longer and (3) mentality to care for property as their “home”
• Expand foreclosure auction / MLS acquisition program to take advantage of accretive external growth landscape
• Supplement acquisition program with “built for rental” product from National Builder Program and AMH Development
BALANCE SHEET
STRATEGY
• Utilize investment grade cost of capital advantage over SFR peers
• Maintain flexible and conservative balance sheet, while optimizing capital stack
• Accretively reinvest retained cash flow into external growth initiatives
SHAREHOLDER VALUE
• 27% total shareholder return in 2016 while deleveraging and strengthening balance sheet
• Industry leading cash flow margins and long-term operating advantage
• Outsized same-home Core NOI after Capex growth of 12.1% and 7.3% for FY 2016 and YTD September 2017, respectively
• Alignment of interests with AMH founder and senior management who hold approximately $1.9 billion of equity
ownership
+
+
=
(1)
(1) Based on closing stock price of $21.71 on September 30, 2017. Common equity includes common shares and operating partnership units that are convertible into common shares.
6
Owner Occupied
55% / ~ 75.7M units
Apartments & Other Rentals
31% / ~ 43.1M units
Total Housing Stock (2)
Substantial Growth In Renter Household Demand (2)Household Formations Outpace Housing Supply (1)
36%
59%
69%
75%
79%
30%
40%
50%
60%
70%
80%
90%
2000 2002 2004 2006 2008 2010 2012 2014 2016
Under 35 35 - 44 45 - 54 55 - 64 65+
0.0
0.5
1.0
1.5
2.0
1980 1985 1990 1995 2000 2005 2010 2015
Multi Family Starts Single Family Starts Long Term Average Household Formation Rate
(
I
n
m
i
l
l
i
o
n
s
)
Non-Institutional
Single-Family Rentals
13% / ~ 15.0M units
(1) Federal Reserve Bank of St. Louis Economic Data and U.S. Census Bureau.
(2) U.S. Census Bureau 3Q17.
R
e
n
t
e
r
H
o
u
s
e
h
o
l
d
s
(
i
n
m
i
l
l
i
o
n
s
)
Homeownership Decline Supports Rental Demand (2)
30.0
32.0
34.0
36.0
38.0
40.0
42.0
44.0
2000 2005 2010 2015
Accelerating demand for single-family rental housing supported by fundamental shifts in demographics and consumer preferences
Compelling Macro Landscape
Institutional
Single-Family Rentals
1% / ~ 1.0M units
7
Program Overview
• Fully internalized acquisition program – AMH personnel underwrite
and inspect all homes acquired through foreclosure auction &
MLS
• Operational insights from internal property management help to
“sharp shoot” optimal target properties
• National renovation program generates substantial scale discounts
Program Benefits & Return Profile
• Create value through discount to replacement cost & renovations
• Additional scale leverages AMH’s highly efficient operating
platform
• 5% to 6% economic yields after capital expenditures
Updated Future Outlook
• 4Q17 – 1,400 homes or $300 million+
• 2018 – expect two-thirds of $1.2 billion acquisition program to be
auction / MLS purchases
Screened over 1 million homes
Underwritten 35% of homes
screened
Perform physical, title and
HOA due diligence
Placed bids on
~25% of homes
underwritten
Purchased
~50,000
homes
Acquisition opportunities remain robust and AMH is uniquely
positioned with the most experienced internal acquisition team in
the single-family rental industry. Since inception, AMH has:
(1) Reflects total homes purchased through all acquisition channels since inception.
How We Invest – Foreclosure Auction/MLS
(1)
8
Program Overview
• National Builder Program
• Acquiring newly constructed “built for rental” homes from
growing national network of 3rd party homebuilders
• AMH typically acquiring 10-20% of homes in newly
constructed for-sale communities
• AMH Development
• Recently launched internal development program
• AMH personnel sourcing land acquisitions and overseeing
construction
Program Benefits
• Strong new construction demand achieving premium rents
• Superior “built for rental” quality homes expected to have lower
expenditure levels
• New development benefit, with minimal development risk:
• No capital at risk with National Builder Program until
construction completion
• Minimal lease-up risk – Predictable delivery schedule and
standardized home models enable pre-marketing and
accelerated leasing of homes
Return Profile
• National Builder Program: 50 bps yield premium
• AMH Development: 100+ bps yield premium
Future Outlook
• 4Q17 – continue ramping up homebuilder relationships and AMH
Development program
• 2018 – expect one-third of $1.2 billion acquisition program to be
new construction
How We Invest – Built for Rental Program
Charlotte, NC
9
1 Property
55%
> 250
Properties
2%
51 - 250
Properties
2%
11 – 50
Properties
7%
2 – 10
Properties
34%
Program Overview
• Robust consolidation opportunity provided by fragmented asset class
• Over 30,000 owners of 11-50 property portfolios
• Over 2,000 owners of 51-250 property portfolios
Program Benefits & Return Profile
• Further leverage AMH’s scalable operating platform
• Accretive cost synergy opportunities
• Integration risk mitigated by AMH’s successful track record of
portfolio acquisitions
Future Outlook
• Bullish view on consolidation opportunities, but timing will be lumpy
and unpredictable
• “Special Forces” AMH acquisition team dedicated to sourcing and
executing bulk portfolio transactions
Single-Family Rental Market Ownership
“Ripe for Consolidation”
Approximately 1 million
owners of 2+ property
portfolios
Sources: Rent range, aggregated by John Burns Real Estate Consulting, LLC (“JBREC”) (Data 2015)
How We Invest – Bulk/Portfolio Opportunities
10
Where We Invest
Notes:
- Total properties percentage based on counts as of September 30, 2017.
- Rental rate growth for full year 2016 for all AMH markets represents actual new lease rental rate spreads as reported by the Company.
Sources: (1) Bureau of Labor Statistics July 2017; (2) JBREC Single Family Rent Index for the twelve months ended December 2016.
Diversified footprint, comprised of high growth markets, ideally positioned for long-term sustainable
growth and portfolio optimization flexibility
Southwest:
% of Total Properties: 26.5%
3Q17 SH Avg. Occupancy: 94.3%
3Q17 Blended Rate Spread: 3.8%
Southeast:
% of Total Properties: 46.2%
3Q17 SH Avg. Occupancy: 94.8%
3Q17 Blended Rate Spread: 4.2%
Midwest:
% of Total Properties: 18.3%
3Q17 SH Avg. Occupancy: 95.3%
3Q17 Blended Rate Spread: 3.7%
West:
% of Total Properties: 9.0%
3Q17 SH Avg. Occupancy: 97.0%
3Q17 Blended Rate Spread: 5.6 %
Employment Growth:
- US national average: 1.5%
- All AMH markets: 2.4%
Single-Family New Lease Rental
Rate Growth:
- US national average: 4.0%
- All AMH Markets: 5.1%
Favorable AMH market trends
relative to national averages:
(1)
(2)
11
The AMH Operating Approach
Centralized Support
• Call centers
• Tenant U/W
• Lease execution
• Rental pricing
• Maintenance
oversight
Boots on
The Ground
• Leasing agents
• Property managers
• Maintenance
technicians
Field
Management
• Local district office
• Regional & district
managers
Centralized approach differentiates AMH operating efficiency
Enhanced efficiency
Superior control
Ability to make nimble
enhancements
Standardized processes
Efficient management of
multiple satellite markets
Local customer service
delivery
Exceptional customer service
Accelerated leasing process
Asset preservation
Efficient maintenance delivery
12
Strong Financial Results
Same-Home: Revenue Growth & Expense Controls (1)
Best-In-Class Platform Efficiency
M
o
r
e
e
f
f
i
c
i
e
n
t
$2,084
$2,034
$1,967 $1,977 $1,967
$150
$155
$160
$165
3Q16 4Q16 1Q17 2Q17 3Q17
Total Core Revenues Annual Maintenance Expenditures per property (1)
12.3% 11.4% 9.0% 7.4% 5.5%
Y-o-Y growth in quarterly NOI after capex (2):
($000’s)
Same-Home: Core NOI Margin Trend (2)
Leverage Metrics
(1) Reflects core revenues in all periods for the 36,682 same-home property pool. Annual maintenance expenditures per property represent average R&M and turnover costs, net plus
capital expenditures for the trailing twelve month period for the related same-home pool for the given quarter.
(2) As presented for the related same-home pool for the given quarter.
58.7%
61.4%
62.2% 62.2%
61.0%
64.4%
65.4%
64.3%
63.3%
57.0%
59.0%
61.0%
63.0%
65.0%
67.0%
3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
13.1%
12.7% 12.7% 12.6%
12.2%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%
3Q16 4Q16 1Q17 2Q17 3Q17
6.6 x
6.1 x
5.1 x 4.8 x
4.2 x
9.4 x
8.7 x 8.3 x
7.4 x 7.3 x
0.0 x
2.0 x
4.0 x
6.0 x
8.0 x
10.0 x
12.0 x
14.0 x
3Q16 4Q16 1Q17 2Q17 3Q17
Net Debt to Adj EBITDA Debt and preferreds to Adj EBITDA
13
Capital Structure Debt Maturity Schedule (2)
(Figures in millions, except per share amounts)
12/31/2016
(In thousands, except share and per share amounts)
Note: Refer to Defined Terms and Non-GAAP Reconciliations in the Appendix, as well as the 3Q17 Supplemental Information Package, for definitions of metrics and reconciliations to GAAP.
(1) Pro Forma for the October 2017 Series A and B participating preferred share conversion, Debt and preferred shares to Adjusted EBITDA was 6.8x.
(2) As of September 30, 2017, reflects maturity of entire principal balance at the fully extended maturity date inclusive of regularly scheduled amortization.
(3) As of September 30, 2017, liquidity represents the sum of $244 million cash on the balance sheet, and $800 million undrawn capacity under our revolving credit facility.
(In millions)
(3)
Investment Grade Balance Sheet
Fixed Rate Debt
20.2%
Floating Rate
Debt
1.9%
Preferred
Shares
11.7%
Common Shares
& OP Units
66.2%
Balance Sheet Philosophy
Maintain flexible investment grade
balance sheet with diverse access to
capital
Continue optimizing capital stack
and utilize investment grade rating
to reduce cost of capital
Expand sources of available capital
as the Company and the SFR sector
evolves and matures
Prudent retention of operating cash
flow
Credit Ratings & Ratios
Moody’s Investor Service
S&P Global Ratings
Baa3 / (Stable)
BBB- / (Stable)
Net debt to Adjusted EBITDA
Debt and preferred shares to Adjusted EBITDA
Fixed charge coverage
Unencumbered Core NOI percentage
4.2x
7.3x
2.9x
62.5%
(1)
$1,044
$1,011 $1,008
$49
$115
Liquidity 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter
Liquidity Asset-backed Securitizations
Secured Note Payable Exchangeable Senior Notes
Revolving Credit and Term Loan Facilities
$200
14
Strong Same-Home Performance
Operating Highlights
3Q16 4Q16 1Q17 2Q17 3Q17
Number of Same‐Home properties 36,682 36,682 36,682 36,682 36,682
Rents from single‐family properties $ 154,610 $ 155,925 $ 156,672 $ 158,278 $ 158,491
Fees from single‐family properties 2,228 1,791 1,885 1,964 2,099
Bad debt (1,805) (1,383) (1,180) (1,012) (1,755)
Core revenues $ 155,033 $ 156,333 $ 157,377 $159,230 $158,835
R&M and turnover costs, net 13,947 10,529 9,414 12,106 13,720
Property tax, insurance and HOA fees, net 32,468 31,561 32,800 32,361 32,578
Property management, net 12,948 12,304 12,142 12,272 12,041
Core property operating expenses $ 59,363 $ 54,394 $ 54,356 $ 56,739 $ 58,339
Core net operating income (“Core NOI”) 95,670 101,939 103,021 102,491 100,496
Core NOI margin 61.7% 65.2% 65.5% 64.4% 63.3%
Capital expenditures 8,949 5,387 5,026 7,083 8,968
Core NOI after capex $ 86,721 $ 96,552 $ 97,995 $ 95,408 $ 91,528
YOY growth in quarterly Core NOI after capex (1) 12.3% 11.4% 9.0% 7.4% 5.5%
Average R&M, turnover, in‐house maintenance
and capex per property
$ 625 $ 434 $ 393 $ 522 $ 618
(Amounts in thousands, except property and per property data)
Increasing revenues driven
by solid rental rate increases
and strong stabilized
occupancy levels
1
Platform maturation and
continued expense controls
lead to stable, predictable
and growing cash flows
2
Outsized Y‐o‐Y growth in
quarterly Core NOI after
capex
3
Reduction in expenditures
resulting from platform
maturation and operating
efficiencies
4
1
2
3
4
3
∑ $ 1,967
Note: Refer to Defined Terms and Non-GAAP Reconciliations in the Appendix for definitions of metrics and reconciliations to GAAP.
(1) Year-over-year percentage growth comparisons based on quarterly same-home populations presented in the Company’s supplemental for the
respective period.
15
Industry Leading Efficiency Metrics
(Dollars in thousands) 3Q16 4Q16 1Q17 2Q17 3Q17
Adjusted EBITDA Margins
Total revenues, excluding tenant charge‐backs $ 205,249 $ 204,382 $ 205,381 $ 209,626 $ 210,742
Property operating expenses, net ( 63,116) ( 56,562) ( 56,393) ( 59,715) (63,110)
Property management expenses, net ( 16,488) ( 15,737) ( 15,600) ( 15,875) ( 15,770)
General & administrative expenses, net ( 7,563) ( 8,026) ( 8,774) ( 8,229) ( 7,826)
Other expenses, net ( 2,575) ( 1,993) ( 629) 199 14
Adjusted EBITDA $ 115,507 $ 122,064 $ 123,985 $ 126,006 $ 124,050
Margin 56.3 % 59.7 % 60.4 % 60.1 % 58.9 %
Maintenance capex ( 10,411) ( 6,353) ( 6,444) ( 9,096) ( 11,600)
Leasing costs ( 2,119) ( 1,806) ( 1,482) ( 1,919) ( 1,960)
Adjusted EBITDA after capex & leasing costs $ 102,977 $ 113,905 $ 116,059 $ 114,991 $ 110,490
Margin 50.2 % 55.7 % 56.5 % 54.9 % 52.4%
Platform Efficiency Percentage
Rents & fees from single‐family properties $ 200,035 $ 201,395 $ 203,711 $ 207,338 $ 210,333
Property management expenses, net $ 16,488 $ 15,737 $ 15,600 $ 15,875 $ 15,770
General & administrative expenses, net 7,563 8,026 8,774 8,229 7,826
Leasing costs 2,119 1,806 1,482 1,919 1,960
Total platform costs $ 26,170 $ 25,569 $ 25,856 $ 26,023 $ 25,556
Platform Efficiency Percentage 13.1 % 12.7 % 12.7 % 12.6 % 12.2 %
Note: Refer to Defined Terms and Non-GAAP Reconciliations in the Appendix for definitions of metrics and reconciliations to GAAP.
16
Highligh
ts
(1
)
Defined Terms and Non-GAAP Reconciliations
Core Net Operating Income ("Core NOI") and Same-Home Core NOI After Capital Expenditures
Core NOI, which we also present separately for our Same-Home portfolio, is a supplemental non-GAAP financial measure that we define as core revenues,
which is calculated as rents and fees from single-family properties, net of bad debt expense, less core property operating expenses, which is calculated as
property operating and property management expenses, excluding noncash share-based compensation expense, expenses reimbursed by tenant charge-
backs and bad debt expense. A property is classified as Same-Home if it has been stabilized longer than 90 days prior to the beginning of the earliest period
presented under comparison and if it has not been classified as held for sale or taken out of service as a result of a casualty loss.
Core NOI also excludes (1) noncash fair value adjustments associated with remeasuring our participating preferred shares derivative liability to fair value, (2)
noncash gain or loss on conversion of convertible units, (3) gain or loss on early extinguishment of debt, (4) hurricane-related charges, net, (5) gain or loss
on sales of single-family properties and other, (6) depreciation and amortization, (7) acquisition fees and costs expensed incurred with recent business
combinations and the acquisition of individual properties, (8) noncash share-based compensation expense, (9) interest expense, (10) general and
administrative expense, (11) other expenses and (12) other revenues. We consider Core NOI to be a meaningful financial measure because we believe it is
helpful to investors in understanding the operating performance of our single-family properties without the impact of certain operating expenses that are
reimbursed through tenant charge-backs. We further adjust Core NOI for our Same-Home portfolio by subtracting capital expenditures to calculate Same-
Home Core NOI After Capital Expenditures, which we believe is a meaningful supplemental non-GAAP financial measure because it more fully reflects our
operating performance after the impact of all property-level expenditures, regardless of whether they are capitalized or expensed.
Core NOI and Same-Home Core NOI After Capital Expenditures should be considered only as supplements to net income or loss as a measure of our
performance and 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. Additionally, these metrics should not be used as substitutes for net income (loss) or net cash flows from operating
activities (as computed in accordance with GAAP).
17
(1
)
The following are reconciliations of core revenues, core property operating expenses, Core NOI, Same-Home Core NOI and Same-Home Core NOI After
Capital Expenditures to their respective GAAP metrics for the trailing five quarters (amounts in thousands):
Sep 30,
2016
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Core revenues
Total revenues 236,057$ 227,559$ 233,754$ 237,008$ 246,836$
Tenant charge‐backs (30,808) (23,177) (28,373) (27,382) (36,094)
Bad debt expense (2,609) (1,877) (1,510) (1,333) (2,299)
Other revenues (5,214) (2,987) (1,670) (2,288) (409)
Core revenues 197,426 199,518 202,201 206,005 208,034
Less: Non‐Same‐Home core revenues 42,393 43,185 44,824 46,775 49,199
Same‐Home core revenues 155,033$ 156,333$ 157,377$ 159,230$ 158,835$
For the Three Months Ended
Sep 30,
2016
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Core property operating expenses
Property operating expenses 92,488$ 78,323$ 83,305$ 85,954$ 97,944$
Property management expenses 18,335 17,547 17,478 17,442 17,447
Noncash share‐based compensation ‐ property management (411) (394) (417) (424) (417)
Expenses reimbursed by tenant charge‐backs (30,808) (23,177) (28,373) (27,382) (36,094)
Bad debt expense (2,609) (1,877) (1,510) (1,333) (2,299)
Core property operating expenses 76,995 70,422 70,483 74,257 76,581
Less: Non‐Same‐Home core property operating expenses 17,632 16,028 16,127 17,518 18,242
Same‐Home core property operating expenses 59,363$ 54,394$ 54,356$ 56,739$ 58,339$
For the Three Months Ended
Defined Terms and Non-GAAP Reconciliations
18
Highligh
ts
(1
)
Sep 30,
2016
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Net (loss) income (167)$ 9,338$ 11,796$ 15,066$ 19,097$
Remeasurement of participating preferred shares 2,490 4,080 5,410 1,640 (8,391)
Loss on early extinguishment of debt 13,408 ‐ ‐ 6,555 ‐
Hurricane‐related charges, net ‐ ‐ ‐ ‐ 10,136
Gain on sale of single‐family properties and other, net (11,682) (1,995) (2,026) (2,454) (1,895)
Depreciation and amortization 75,392 74,164 73,953 72,716 74,790
Acquisition fees and costs expensed 1,757 544 1,096 1,412 1,306
Noncash share‐based compensation expense ‐ property management 411 394 417 424 417
Interest expense 32,851 31,538 31,889 28,392 26,592
General and administrative expense 8,043 8,524 9,295 8,926 8,525
Other expenses 3,142 5,496 1,558 1,359 1,285
Other revenues (5,214) (2,987) (1,670) (2,288) (409)
Tenant charge‐backs 30,808 23,177 28,373 27,382 36,094
Expenses reimbursed by tenant charge‐backs (30,808) (23,177) (28,373) (27,382) (36,094)
Bad debt expense excluded from operating expenses 2,609 1,877 1,510 1,333 2,299
Bad debt expense included in revenues (2,609) (1,877) (1,510) (1,333) (2,299)
Core NOI 120,431 129,096 131,718 131,748 131,453
Less: Non‐Same‐Home Core NOI 24,761 27,157 28,697 29,257 30,957
Same‐Home Core NOI 95,670 101,939 103,021 102,491 100,496
Same‐Home capital expenditures 8,949 5,387 5,026 7,083 8,968
Same‐Home Core NOI After Capital Expenditures 86,721$ 96,552$ 97,995$ 95,408$ 91,528$
For the Three Months Ended
Defined Terms and Non-GAAP Reconciliations
19
EBITDA / Adjusted EBITDA / Adjusted EBITDA after Capex and Leasing Costs / Adjusted EBITDA Margin / Adjusted EBITDA after Capex and
Leasing Costs Margin
EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure and is used by us and
others as a supplemental measure of performance. Adjusted EBITDA is a supplemental non-GAAP financial measure calculated by adjusting EBITDA for
(1) acquisition fees and costs expensed incurred with recent business combinations and the acquisition of individual properties, (2) net gain or loss on
sales / impairment of single-family properties and other, (3) noncash share-based compensation expense, (4) hurricane-related charges, net, (5) gain or
loss on early extinguishment of debt, (6) gain or loss on conversion of convertible units and (7) noncash fair value adjustments associated with
remeasuring our participating preferred shares derivative liability to fair value. Adjusted EBITDA after Capex and Leasing Costs is a supplemental non-
GAAP financial measure calculated by adjusting Adjusted EBITDA for (1) recurring capital expenditures and (2) leasing costs. Adjusted EBITDA Margin is
a supplemental non-GAAP financial measure calculated as Adjusted EBITDA divided by total revenues, net of tenant charge-backs. Adjusted EBITDA
after Capex and Leasing Costs Margin is a supplemental non-GAAP financial measure calculated as Adjusted EBITDA after Capex and Leasing costs
divided by total revenues, net of tenant charge-backs. We consider these metrics to be meaningful financial measures of operating performance
because they exclude the impact of various income and expense items that are not indicative of operating performance.
Defined Terms and Non-GAAP Reconciliations
20
Sep 30,
2016
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Net (loss) income (167)$ 9,338$ 11,796$ 15,066$ 19,097$
Interest expense 32,851 31,538 31,889 28,392 26,592
Depreciation and amortization 75,392 74,164 73,953 72,716 74,790
EBITDA 108,076 115,040 117,638 116,174 120,479
Noncash share‐based compensation ‐ general and administrative 480 498 521 697 699
Noncash share‐based compensation ‐ property management 411 394 417 424 417
Acquisition fees and costs expensed 1,757 544 1,096 1,412 1,306
Net (gain) loss on sale / impairment of single‐family properties and other (11,115) 1,508 (1,097) (896) (596)
Hurricane‐related charges, net ‐ ‐ ‐ ‐ 10,136
Loss on early extinguishment of debt 13,408 ‐ ‐ 6,555 ‐
Remeasurement of participating preferred shares 2,490 4,080 5,410 1,640 (8,391)
Adjusted EBITDA 115,507$ 122,064$ 123,985$ 126,006$ 124,050$
Recurring capital expenditures (10,411) (6,353) (6,444) (9,096) (11,600)
Leasing costs (2,119) (1,806) (1,482) (1,919) (1,960)
Adjusted EBITDA after Capex and Leasing Costs 102,977$ 113,905$ 116,059$ 114,991$ 110,490$
Total revenues 236,057$ 227,559$ 233,754$ 237,008$ 246,836$
Less: tenant charge‐backs (30,808) (23,177) (28,373) (27,382) (36,094)
Total revenues, net of tenant charge‐backs 205,249$ 204,382$ 205,381$ 209,626$ 210,742$
Adjusted EBITDA Margin 56.3% 59.7% 60.4% 60.1% 58.9%
Adjusted EBITDA after Capex and Leasing Costs Margin 50.2% 55.7% 56.5% 54.9% 52.4%
For the Three Months Ended
The following is a reconciliation of net income or loss, determined in accordance with GAAP, to EBITDA, Adjusted EBITDA, Adjusted EBITDA after Capex
and Leasing Costs, Adjusted EBITDA Margin and Adjusted EBITDA after Capex and Leasing Costs Margin for the trailing five quarters (amounts in
thousands):
Defined Terms and Non-GAAP Reconciliations
21
Platform Efficiency Percentage
Management costs, including (1) property management expenses, net of tenant charge-backs and excluding noncash share-based compensation
expense, (2) general and administrative expense, excluding noncash share-based compensation expense and (3) leasing costs, as a percentage of total
portfolio rents and fees.
Sep 30,
2016
Dec 31,
2016
Mar 31,
2017
Jun 30,
2017
Sep 30,
2017
Property management expenses 18,335$ 17,547$ 17,478$ 17,442$ 17,447$
Less: tenant charge‐backs (1,436) (1,416) (1,461) (1,143) (1,260)
Less: noncash share‐based compensation ‐ property management (411) (394) (417) (424) (417)
Property management expenses, net 16,488 15,737 15,600 15,875 15,770
General and administrative expense 8,043 8,524 9,295 8,926 8,525
Less: noncash share‐based compensation ‐ general and administrative (480) (498) (521) (697) (699)
General and administrative expense, net 7,563 8,026 8,774 8,229 7,826
Leasing costs 2,119 1,806 1,482 1,919 1,960
Platform costs 26,170$ 25,569$ 25,856$ 26,023$ 25,556$
Rents from single‐family properties 197,137$ 198,980$ 201,107$ 204,648$ 207,490$
Fees from single‐family properties 2,898 2,415 2,604 2,690 2,843
Total portfolio rents and fees 200,035$ 201,395$ 203,711$ 207,338$ 210,333$
Platform Efficiency Percentage 13.1% 12.7% 12.7% 12.6% 12.2%
For the Three Months Ended
(In Thousands)
Defined Terms and Non-GAAP Reconciliations
22
Credit Metrics
We present the following selected metrics because we believe they are helpful as supplemental measures in assessing the Company’s ability to service
its financing obligations and in evaluating balance sheet leverage against that of other real estate companies. The tables below reconcile these metrics,
which are calculated in part based on several non-GAAP financial measures (amounts in thousands).
Sep 30,
2017
Total Debt 2,382,871$
Preferred shares at l iquidation value 1,259,477
Total Debt and preferred shares 3,642,348
Adjusted EBITDA ‐ TTM 496,105$
Debt and Preferred Shares to Adjusted EBITDA 7.3 x
For the Trailing
Twelve Months
Ended
Sep 30, 2017
Interest expense per income statement 118,411$
Less: noncash interest expense related to acquired debt (3,489)
Less: amortization of deferred financing costs (8,925)
Add: capitalized interest 3,884
Cash interest 109,881
Dividends on preferred shares 59,709
Fixed charges 169,590
Adjusted EBITDA 496,105$
Fixed Charge Coverage 2.9 x
Debt and Preferred Shares to Adjusted EBITDA
Fixed Charge Coverage
Defined Terms and Non-GAAP Reconciliations
23
Sep 30,
2017
Total Debt 2,382,871$
Less: cash and cash equivalents (243,547)
Less: asset‐backed securitization certificates (25,666)
Less: restricted cash related to securitizations (46,166)
Net debt 2,067,492$
Adjusted EBITDA TTM 496,105
Net Debt to TTM Adjusted EBITDA 4.2 x
For the Three
Months Ended
Sep 30, 2017
Unencumbered Core NOI 82,186$
Core NOI 131,453$
Unencumbered Core NOI Percentage 62.5%
Unencumbered Core NOI Percentage
Net Debt to Adjusted EBITDA
Defined Terms and Non-GAAP Reconciliations