Q2 2026 American Homes 4 Rent Earnings Call Transcript
Key Points
- American Homes 4 Rent (AMH) delivered strong second-quarter results, with core FFO per share growth of 5.2% year-over-year and adjusted FFO growth of 8.3%.
- The company raised its full-year 2026 core FFO per share guidance midpoint by $0.03 to $1.95, reflecting a 4.3% year-over-year growth expectation.
- Same-home portfolio performance was solid, with new, renewal, and blended lease spreads of 1.4%, 3.2%, and 2.7%, respectively, and core revenue growth of 2.3%.
- The company's in-house development program is performing well, with initial yields improving and new deals closing with yields in the 6% range.
- American Homes 4 Rent (AMH) is benefiting from the passage of the ROAD to Housing Act, which provides regulatory certainty and preserves its growth channels in development and portfolio consolidation.
- The company is seeing strong demand for its homes, with occupancy holding at 96.1% in July and lease spreads improving sequentially.
- Management is executing well on cost controls, holding year-over-year controllable expense growth to less than 1% in the same-home portfolio.
- The company is actively repurchasing shares, having bought back 4.1 million shares at an average price of $29.88 per share in the second quarter.
- Disposition activity is tracking ahead of plan, with over 1,300 homes sold in the first half of the year at cap rates in the 4% area, providing funding for development.
- The company's lease expiration management program is working, with only one-third of 2026 lease expirations remaining in the second half, positioning it well for 2027.
- Same-home revenue growth is expected to decelerate in the second half of 2026 due to the timing of earn-in from 2025 lease spreads.
- New lease rate growth remains flattish for the full year, indicating limited pricing power in certain markets.
- Some markets, such as Atlanta and Tampa, are still showing weaker performance with occupancy and rate growth below portfolio averages.
- The company's development delivery guidance for the second half of the year is lower than the first half, which could limit near-term external growth.
- The company's net debt to adjusted EBITDA stands at 5.2 times, and it has a drawn balance of $390 million on its revolving credit facility, indicating some leverage.
- The company expects controllable expenses like R&M and turn costs to return to low single-digit growth in the second half, after being in negative territory.
- The portfolio consolidation environment has been slow due to regulatory uncertainty, with limited deals closed and seller expectations still being recalibrated.
- The company's full-year same-home core NOI growth guidance of 2.4% is modest, reflecting a challenging operating environment.
- The company is facing a competitive supply environment in some markets, which is pressuring lease rates and occupancy.
- The company's development pipeline has been reduced and rebalanced, and it is only now beginning to replenish land, which could impact future delivery volumes.
Greetings, and welcome to the AMH second quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I will now turn the conference over to Nick Fromm, Vice President of Investor Relations. Thank you, Nick. You may begin.
Good morning and thank you for joining us for our second quarter 2026 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 fact 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
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