American Homes 4 Rent Q4 Earnings Call Highlights

Key Points

• AMH provided 2026 guidance of Core FFO $1.89–$1.95 per share/unit (midpoint ~+2.7% YoY) and expects Same‑Home Core NOI growth around 2% with occupancy in the high‑95% range, while moderating development to add about 1,900 homes (1,400 wholly owned) funded largely by disposition proceeds.
• Management said late‑2025 leasing was pressured by elevated supply across multifamily, build‑to‑rent and for‑sale‑to‑rent conversions, with January spreads showing new leases -1%, renewals +3.5% and blended +2.4%, and the company is prioritizing rebuilding occupancy in Q1 through pricing actions after coming in ~200 homes behind target.
• On capital allocation AMH repurchased 8.4 million shares (~2%) under its prior $265M program and the board approved a new $500M buyback but will be patient; year‑end net debt (including preferred) to Adjusted EBITDA was 5.2x, and a securitization payoff freed ~20,000 homes to provide a runway for further dispositions.

American Homes 4 Rent NYSE: AMH executives said the company finished 2025 with what management described as “solid execution,” while entering 2026 focused on rebuilding occupancy amid a supply-heavy housing backdrop that pressured late-year leasing trends.

During the company’s fourth-quarter 2025 earnings call on Feb. 20, CEO Bryan Smith, CFO Chris Lau and COO Lincoln Palmer discussed year-end results, portfolio activity, guidance for 2026, and the heightened policy attention on single-family rentals.

Management addresses policy focus on single-family rentals

Smith opened the call by referencing an executive order issued “last month” that he said highlights the administration’s focus on housing affordability and the role single-family rentals play. Smith said AMH has been “actively engaged with government and business leaders in Washington and around the country” and that discussions have been “encouraging” as the company works with policymakers on affordability challenges.

Smith emphasized single-family rentals as a long-standing component of the housing ecosystem, noting that “roughly one-third” of U.S. households have been renters consistently since 1965. He also said AMH surveys show buying a home is the No. 1 reason residents move out of AMH homes. Over 2025, the company estimated more than 5,000 households—about 30% of move-outs—left AMH to purchase a home.

In response to a question about White House news and a potential cap on the number of homes per organization, Smith said the definition of “institutional investor” was still evolving and “how this is all gonna ultimately shake out” remained unclear. He said policymakers recognize that housing supply has not kept up with demand and that “supply solutions are continuing to be sought.”

Fourth-quarter and full-year results, including development and dispositions

Lau said AMH reported fourth-quarter net income attributable to common shareholders of $123.8 million, or $0.33 per diluted share, and Core FFO of $0.47 per share and unit, which he said represented 4.1% year-over-year growth.

For full-year 2025, Lau reported net income attributable to common shareholders of $439 million, or $1.18 per diluted share, and Core FFO of $1.87 per share and unit, representing 5.4% year-over-year growth. Smith separately stated the company delivered $0.87 of Core FFO per share in 2025, also describing 5.4% year-over-year growth.

From an investment and portfolio activity standpoint, executives highlighted:

• Development deliveries: 490 homes delivered in the fourth quarter and more than 2,300 homes delivered in 2025 across 14 markets, according to Lau.
• Dispositions: 646 properties sold in the fourth quarter for roughly $190 million of net proceeds; 1,827 properties sold in 2025 for about $570 million of net proceeds, at an average disposition cap rate in the “high 3%,” Lau said.

Smith said AMH has not been materially active buying homes on the MLS for several years and has instead been an active seller. He said the company sold more than 1,800 homes to individual homeowners in 2025 and expects similar activity in 2026, with proceeds helping fund development.

Leasing trends: supply pressure and a focus on occupancy

Management characterized late-2025 conditions as challenging due to seasonal demand moderation and what Smith called “stubborn supply,” which pressured rate and occupancy entering 2026.

For January, Smith reported new lease, renewal, and blended spreads of -1%, 3.5%, and 2.4%, respectively, and same-home average occupied days of 95%.

Palmer said AMH entered 2026 with the start of leasing season “maybe slightly delayed” compared with prior years and noted the company came in “200 houses behind” its expectation to build occupancy into year-end 2025. The company is prioritizing occupancy during the first quarter, supported by pricing actions, with a goal of building into peak season and holding occupancy better later in the year.

Lau added that, on a full-year basis, the company is thinking about new lease growth in a “flattish” range, renewals in the “±3% area,” and blended spreads in the “low 2s,” alongside occupancy expectations in the “high 95s.”

Executives repeatedly pointed to supply across multiple housing types as a key factor. Palmer cited elevated supply in multifamily, for-sale to for-rent conversions, and build-to-rent (BTR) activity, with impacts varying by market. He pointed to examples including San Antonio (multifamily deliveries), Phoenix (BTR inventory), and Las Vegas (for-sale to for-rent conversions and competition from traditional landlords). He also said Midwest markets have remained strong and “did not take some of those high, high levels of deliveries.”

2026 guidance: modest growth and moderated development activity

Lau provided initial 2026 guidance for Core FFO per share and unit of $1.89 to $1.95, with the midpoint representing 2.7% year-over-year growth.

For the Same-Home portfolio at the midpoint, Lau said expectations include:

• Core revenues growth: 2.25%, reflecting Average Monthly Realized Rent growth around 2.5% and a 25-basis-point year-over-year occupancy headwind, with Average Occupied Days expected in the high 95% range.
• Core property operating expense growth: 2.75%, including property tax growth around 3% and “mid-2%” growth in other expenses, aided by insurance renewal results and controllable expense management.
• Same-Home Core NOI growth: 2% at the midpoint.

On expenses, Lau said property tax growth in 2025 was in the 2.5% area—one of the company’s lowest growth years—and that 2026 is expected to be around 3%. He also said the outlook includes a “double-digit decrease” in year-over-year insurance costs based on a renewal campaign effective at the end of February.

On development, Lau said AMH has “strategically moderated” activity given capital markets conditions but expects to deploy about $750 million of total capital (including joint ventures) and add about 1,900 newly constructed homes to wholly owned and joint venture portfolios. For the wholly owned portfolio, he said AMH expects to invest about $550 million, adding 1,400 homes, and plans to fund that entirely through disposition proceeds.

Smith said AMH’s going-in development yields ended 2025 in the “5.3% area,” below the 5.5% originally expected, driven by broader rent pressures across residential. He said the company expects similar yields in 2026 for the planned 1,900 deliveries, while noting yields are “highly dependent on rent movement.”

Capital allocation: share repurchases, leverage, and disposition capacity

Lau said year-end net debt (including preferred shares) to Adjusted EBITDA was 5.2x. He also said the company’s $1.25 billion revolving credit facility had a $360 million balance, and AMH held about $110 million of cash.

Lau said AMH fully utilized its remaining $265 million share repurchase authorization during the fourth quarter of 2025 and January 2026, repurchasing 8.4 million shares—about 2% of total units outstanding—at an average price of $31.65 per share. He said the board has since approved a new $500 million share repurchase authorization, but management plans to be “patient” on additional repurchases amid industry attention and capital market uncertainty. The company’s 2026 outlook includes only the $115 million of repurchases executed in January, Lau said.

Executives also discussed disposition capacity after AMH freed up 20,000 homes that had been encumbered by securitizations that were paid off. Lau said there is a “healthy runway” of disposition opportunity, but the pace is naturally limited because homes generally need to be vacant to sell via the MLS. He added that AMH “will never take housing away from an existing resident to sell a home,” meaning sales depend on leases rolling and residents moving out.

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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