American Homes 4 Rent

Greetings, and welcome to the American Homes for Rent first quarter 2023 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. It is now my pleasure to introduce your host, Nick Fromm, Director of Investor Relations. Thank you, sir. You may begin.

Good morning, thank you for joining us for our first quarter 2023 earnings conference call. With me today are David Singlen, 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, May 5, 2023. 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 release and supplemental information package. As a note, our operating and financial results, including GAAP and non-GAAP 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.amh.com. With that, I will turn the call over to our CEO, David Sinklin.

Welcome, everyone, and thank you for joining us today. The early spring leasing season is off to a strong start at AMH. Our property management teams are doing a great job capturing the strong demand for single-family rentals, and our development program continues to deliver consistent and predictable growth through the addition of premium new construction rental homes. Like everyone else, we are following the broader markets, disruptions in the banking system, and choppy economic waters. But no matter what's ahead, we continue to have confidence that AMH and single-family rentals which have now matured into a core asset class, have the ability to outperform in any economic environment. To frame this further, three important things come to mind. First, SFR sector fundamentals are strong. Our country continues to suffer from a persistent housing shortage, and the current interest rate environment has created a housing affordability crisis. In this backdrop, The single-family rental value proposition has never been stronger. We offer a simple and accessible way for our residents to enjoy the American dream of single-family living. Second, the AMH balance sheet shines in times of capital market uncertainty. Our investment-grade balance sheet, staggered maturity profile, and focus on long-term fixed-rate debt minimizes our exposure to near-term interest rate volatility. Additionally, our leverage profile, which ended the quarter at 5.4 times, positions us for further resiliency as well as flexibility for growth. And third, our ability to deliver consistent and predictable growth is unmatched. As announced earlier this week, AMH is now proudly the 39th largest home builder in the country, based on the 2023 Builder 100 list. With our internal development program as the backbone, and no reliance on equity financing, we continue to grow our portfolio where we want and when we want, regardless of external market factors. Overall, we are in a great position as we navigate these uncertain times. Now turning to the quarter, we started off 2023 on solid footing, delivering 41 cents core FFO per share, representing 8.6% year-over-year growth. And as expected, we are seeing our normal seasonality curve return with an acceleration in demand heading into spring leasing season, which Brian will touch on shortly. On to the investment front and our three-pronged growth strategy. Our main focus continues to be our internal development program. The other two acquisition channels remain largely on pause due to pricing dynamics in the open market, as well as cost of capital considerations. We continue to have ongoing discussions with market participants and will be ready to act should conditions change. For the quarter, we delivered 466 AMH development homes to our wholly owned and joint venture portfolios, keeping us nicely on track with our full year guidance expectation as the team continues to successfully navigate a dynamic supply chain environment. We continue to see gradual input cost improvements as we work towards deliveries with yields in the 6% area by year end. Lastly, I am proud to report we released our fifth annual sustainability report, which can be found in the investor relations section of our website. The report details the company's ESG performance and priorities with notable highlights, including implementation of an environmental management system, expanded greenhouse gas inventory, and other social initiatives impacting communities. Sustainability remains a priority for the company, and I am proud of how far our programs and initiatives have come in a short period of time. In closing, 2023 is off to a strong start, and we are well positioned as we enter spring leasing season and continue to navigate the uncertain and unpredictable economic environment. As we continue our journey, we remain committed to being a resilient, sustainable, and inclusive organization that has earned the trust of those who rely on us while delivering long-term value creation for our shareholders. Now, I'll turn it over to Brian for an update on our operations. Brian?