Q4 2024 American Homes 4 Rent Earnings Call Transcript
Key Points
- American Homes 4 Rent (AMH) reported a strong finish to 2024 with a 6.6% growth in core FFO per share.
- The company achieved a 4% same-home core revenue growth in the fourth quarter, contributing to a full-year core revenue growth of 5%.
- AMH's development program continues to be a primary growth channel, with plans to deliver approximately 2,300 homes in 2025.
- The company has a strong balance sheet with a fully undrawn $1.25 billion revolving credit facility and approximately $200 million in cash.
- AMH's leadership team has been strengthened with key promotions, ensuring continued focus on execution and outperformance.
- Core operating expense growth was 4.8% for the fourth quarter, slightly higher than revenue growth, which could pressure margins.
- The company expects bad debt to remain slightly elevated in the low 1% area for 2025, indicating ongoing challenges in certain markets.
- AMH does not anticipate any material acquisitions in 2025 due to current pricing and cost of capital environments.
- The expected blended rent growth for 2025 is in the high 3% area, which may be considered modest given the current inflationary environment.
- Potential risks include labor and material cost increases, particularly tariffs on lumber, which could impact development yields.
Greetings, and welcome to the AMH fourth quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Nicholas Fromm, Director of Investor Relations. Thank you, Nicholas. You may begin.
Thank you for joining us for our fourth quarter 2024 earnings conference call. With me today are Bryan Smith, Chief Executive Officer; Chris Lau, Chief Financial Officer; and Lincoln Palmer, Chief Operating Officer. Please be advised that this call may include forward-looking statements. All statements other than statements of historical facts included in this conference call are forward-looking statements that are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected in these statements.
These risks and other factors that could adversely affect our business and future results are described in our press releases and in our filings with the SEC
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