American Homes 4 Rent

And welcome to the American Homes for Rent second quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. At this time, I'd like to turn the call over to Nick Fromm, Senior Manager, Investor Relations for American Homes for Rent. Please go ahead, sir.

Good morning. Thank you for joining us for our second quarter 2022 earnings conference call. With me today are David Sinkland, Chief Executive Officer, Brian Smith, Chief Operating Officer, and Chris Lau, Chief Financial 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 in our filings with the SEC. All forward-looking statements speak only as of today, August 5, 2022. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. A reconciliation of GAAP to non-GAAP financial measures is included in our earnings press release and supplemental information package. As a note, our operating financial results, including gap and non-gap measures, are fully detailed in our earnings release and supplemental information package. You can find these documents, as well as SEC reports and the audio webcast replay of this conference call, on our website at www.americanhomesforrent.com. With that, I will turn the call over to our CEO, David Sinklin.

Thank you, Nick. Good morning, and thank you for joining us today. This quarter we continued delivering strong, consistent results with $0.38 core FFO per share, representing 16% year-over-year growth. This once again demonstrates the durable and consistent earnings power of the AMH platform. Before Brian and Chris dive into the quarter's results, I want to walk through three areas. First, a macro view of the housing market. Our growth programs and how they differentiate American Homes for Rent from other housing companies. And finally, how are we doing as a socially responsible company? Starting with some thoughts on the macro housing environment. First, it is estimated that our country is anywhere from three to five million housing units short. No small number. And this is not likely to get any better as the latest numbers from the U.S. Census Bureau marked the fourth consecutive monthly decline in single-family starts. Second, while single-family rentals were deemed the housing option of last resort 15 years ago, today they are desired as a premium housing option of choice. American Homes for Rent has been at the forefront of changing the narrative by providing high-quality homes in new communities with best-in-class amenities. Additionally, our professionally managed platform and services have elevated the resident experience. In the last year alone, our residents have gone on record in media outlets like CNBC, USA Today, and the Orlando Business Journal to voice their support of our rental homes, which gives them access to a simplified single-family lifestyle. Third, not only is single-family rental living more convenient, than home ownership today, it is also more affordable. And finally, the American Homes for Rent portfolio is located where Americans want to live. Our assets are strategically positioned in high quality of life markets, benefiting from migration patterns fueled by long-term demographic shifts and changing lifestyle preferences. All in, the current housing environment supports sustained single-family rental demand for the foreseeable future. and American Homes for Rent continues to be well positioned. Now turning to our growth programs. Our in-house development program is the backbone of our growth strategy and now more than ever is demonstrating the benefit we envisioned when we launched the program over five years ago. We continue to add high quality assets to our operating platform while at the same time retaining full control of the development process. This results in a consistent and predictable growth channel that we can rely on throughout all economic cycles. Further, our internal development program differentiates us in two ways when compared against other housing business models. First, we are the only public single-family rental owner and operator with a fully integrated development program. This means we do not depend exclusively on the MLS markets or third party home builders to drive external growth. Second, we build homes for our own portfolio. Therefore, we are not subject to for sale market risk like traditional home builders. And as a reminder on the economics, our internal development program delivers premium yields over our open market and national builder acquisition channels. and creates shareholder value, as we do not incur builder profits, which enables us to add homes at a significant discount to market value. Now turning to our investment strategy more broadly. Interest rates have risen, while home prices have yet to react in a meaningful way. In addition, these are uncertain times in the capital market. As such, we have temporarily scaled back one-off MLS transactions to allow the market time to recalibrate and stabilize. This will preserve dry powder for future investment, and when better opportunities become available, we'll be ready to act. This revision reflects our disciplined investment approach and highlights the competitive advantage of our three-pronged growth strategy. Lastly, I would like to touch on a few ways American Homes for Rent is focused on social responsibility. Through our differentiated development program and strategic investments, we are doing our part to help solve the critical housing shortage in America. With AMH development, we are not only adding high quality homes to the nation's housing stock, we are providing homes in high demand, safe communities with good schools where families want to live. Additionally, In the face of an ownership affordability crisis, we are providing an attractive rental solution for households across the country. Separately, we are also investing in partnerships with innovators at the intersection of technology and sustainability. Through our recent PropTech collaborations, we are funding initiatives to reduce carbon emissions in the industry and enhance the resident experience by developing new amenities. both of which will unlock the next era of housing. In closing, I am excited about these initiatives and optimistic about our future. The single-family rental demand tailwinds, combined with our differentiated AMH growth strategy, puts us in a great long-term position to remain the leader in residential housing. Now, Brian will provide an update on our operations. Brian?