American Homes 4 Rent NYSE: AMH raised the midpoint of its 2026 Core FFO-per-share guidance after reporting second-quarter results that management said reflected strong leasing execution, controlled expenses, development lease-up activity and higher-than-expected disposition proceeds.
Chief Executive Officer Bryan Smith said demand for single-family rental homes remained healthy across the company’s diversified footprint. He said the company’s teams turned and re-leased a record number of homes during the first half while managing expenses tightly.
The company increased the midpoint of its full-year Core FFO guidance by $0.03 to $1.95 per share, representing expected year-over-year growth of 4.3%. Chief Financial Officer Chris Lau said the new midpoint represented the high end of the company’s prior guidance range.
Second-Quarter Results and Leasing Trends
AMH reported net income attributable to common shareholders of $113.6 million, or $0.31 per diluted share, for the second quarter. Core FFO was $0.49 per share, up 5.2% from a year earlier, while adjusted FFO was $0.45 per share, up 8.3% year over year.
Within the Same-Home portfolio, average occupied days were 96% during the quarter. New lease spreads were 1.4%, renewal spreads were 3.2%, and blended spreads were 2.7%, producing Core revenue growth of 2.3%.
Smith said new and renewal rate growth accelerated during the quarter. In July, occupancy was 96.1%, while new lease, renewal and blended spreads were 1.6%, 3.3% and 2.8%, respectively.
Chief Operating Officer Lincoln Palmer said the company expects to maintain occupancy in the back half of the year and finish 2026 in the high-95% range. AMH expects full-year new-lease rate growth to be roughly flat, renewal growth in the 3.5% range and blended spreads in the low-2% range.
Palmer said only about one-third of 2026 lease expirations remain in the second half, following a multiyear initiative to reshape the company’s expiration schedule. The lighter second-half expiration profile is expected to support a flatter occupancy curve and improve the company’s inventory position heading into 2027.
Management cited continued strength in Midwest and several Western markets, including Seattle, Boise and Salt Lake City, where Palmer said occupancy was generally in the 96% to 97% range. Atlanta and Tampa were described as markets showing improvement, though management said those markets still have work to do on occupancy or rental rates.
Expense Controls Support NOI Outlook
Lau said controllable Same-Home expense growth was held below 1% year over year in the quarter. The company lowered the midpoint of its full-year Same-Home Core expense-growth outlook by 75 basis points to 2%, citing expense controls and modestly favorable property-tax developments in several smaller states.
As a result, AMH raised the midpoint of its Same-Home Core NOI growth outlook by 40 basis points to 2.4%. The company now expects Same-Home Core NOI margins to expand modestly in 2026 compared with 2025.
Palmer said repair-and-maintenance, turn-cost and other controllable expense categories may move toward low-single-digit or inflation-like growth during the second half, rather than remaining negative as they had been earlier in the year.
Lau said revenue growth in the second half is expected to moderate relative to the first half partly because of the timing of rent-growth “earn-in” from 2025 leasing spreads. He said the company’s occupancy and new-lease performance were generally tracking in line with expectations established at the beginning of the year, while renewals were modestly better than anticipated.
Development, Dispositions and Capital Allocation
AMH delivered 651 homes during the second quarter to its wholly owned and joint-venture portfolios, including 542 homes delivered to the wholly owned portfolio at an investment cost of about $220 million.
Smith said the company’s development program has benefited from pre-leasing initiatives, flat vertical construction costs and improved initial yields. AMH executed more initial leases than homes delivered during the first six months, according to Lau. Of roughly 700 homes scheduled for delivery in the second half, Smith said approximately 40% had already been rented.
The company expects to deliver 1,900 homes during 2026. Smith said the lower pace of deliveries in the second half relative to the first half reflects a strategy of delivering homes into stronger demand periods.
Management said recently evaluated development deals were expected to yield in the 6% range, compared with projects currently working through mid- to low-5% yields. Smith cited favorable land opportunities and design and delivery optimizations as factors supporting newer project economics.
AMH sold more than 1,300 homes in the first half at capitalization rates in the 4% range. Lau said net disposition proceeds totaled about $380 million year to date, placing the company on track toward the upper half of its previously stated $400 million to $600 million full-year disposition range. The proceeds are being used to match-fund on-balance-sheet development and reduce planned incremental debt needs.
At quarter-end, net debt, including preferred shares, was 5.2 times adjusted EBITDA. The company had about $84 million in cash and $390 million outstanding on its $1.25 billion revolving credit facility. During the quarter, AMH repurchased 4.1 million common shares for $123 million, at an average price of $29.88 per share.
Legislation and Potential Growth Opportunities
Smith said the Road to Housing Act, enacted in June, provided greater certainty for the single-family rental industry. He said the legislation recognized new construction, grandfathered existing single-family rental homes and preserved the ability to consolidate existing rental portfolios.
Management said portfolio-consolidation activity had slowed amid regulatory uncertainty but had shown signs of increasing following the legislation. Smith said AMH would pursue portfolio opportunities only when the cost of capital and transaction economics were attractive.
The company also said it sees third-party property management as a potential tool in portfolio transactions, including situations where it may acquire homes fitting its criteria while managing other assets for a seller. Smith added that AMH has discussed fee-building opportunities that could potentially lead to third-party management or future acquisitions, though he said no deals were being announced.
About American Homes 4 Rent (NYSE:AMH)
American Homes 4 Rent NYSE: AMH is a publicly traded real estate investment trust (REIT) specializing in the acquisition, development and management of single-family rental homes. Since its initial public offering in April 2013, the company has focused on building a large-scale, professionally managed portfolio of homes designed to meet the needs of today's renters. Its business model emphasizes the acquisition of well-located properties coupled with consistent, in-house property management to drive occupancy and long-term value.
As of the most recent reporting, American Homes 4 Rent owns and operates tens of thousands of homes across the United States, with concentration in key Sun Belt and high-growth markets.
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