American Homes 4 Rent

Greetings and welcome to the AMH second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If you 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 you to your host, Nicholas Frum, Director of Investor Relations. Thank you, Nick. You may begin.

Good morning, and thank you for joining us for our second quarter 2025 earnings conference call. With me today are Brian Smith, Chief Executive 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 1st, 2025. 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 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 in 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, Brian Smith.

Welcome, everyone, and thank you for joining us today. We had another great quarter. driven by our continued commitment to the AMH strategy. Our year-to-date results reinforce that we are focused on the right things, adding value and growing earnings across all areas of the business. We do that by focusing on three key areas. First, operational excellence, where we leverage in-house technology to support efficient execution and deliver a superior resident experience. Second, Portfolio optimization, where data drives our asset management and investment decisions on markets, locations, asset type, and quality. And third, prudent capital acumen, where we prioritize a high-quality investment-grade balance sheet that provides flexibility and diverse access to capital as we remain committed to our AMH development program. And our strategy is working. As outlined in last night's press release, we increased our full-year core FFO per share guidance by 3 cents to $1.86 at the midpoint, now representing 5.1% growth. This guidance increase once again positions us at the top of the residential sector. Demand for high-quality, well-located AMH homes remains strong. In the second quarter, foot traffic was up more than 5% year over year, driving solid leasing and rate growth, with more and more people coming directly to AMH.com to start their search for a new home. This translated in the second quarter same home average occupied days of 96.3% and new renewal and blended rental rate spreads of 4.1%, 4.4%, and 4.3% respectively. Together, with better than expected collections, same home core revenue growth was 3.9% for the quarter. These results reflect the strength of our revenue management strategy, which includes our lease expiration management initiative that we discussed last quarter. On the expense front, core operating expense growth was 3.6%, leading to same home core NOI growth of 4.1% for the quarter. Overall, the second quarter was a great example of outstanding execution by the teams across all areas of the business. After a successful spring leasing season, our team shifted their focus to managing inventory ahead of the move out season. For July, leasing activity remained steady with same home average occupied days of 96.1% and new renewal and blended spreads of 3.6%, 3.9%, and 3.8% respectively. Importantly, as we think about the balance of the year, we expect the seasonal curve in 2025 to be flatter than 2024 as we continue to execute on our revenue optimization objectives. With the flatter seasonal curve, we expect leasing to seasonally moderate less in the third and fourth quarters than they did last year, with blended spreads remaining in the high 3% area for the balance of the year. Turning to external growth, we remain committed to our prudent and disciplined approach. AMH development remains the backbone of our growth programs and is on track to meet this year's delivery expectations with initial yields continuing to improve on newly delivered homes. On the acquisitions front, we review thousands of assets each month across our 30 plus markets. While the vast majority still do not meet our buy box, we are seeing some encouraging signs, including bid-ask spreads beginning to move in the right direction from certain homebuilders. To close, Our year-to-date results underscore the enduring success of the AMH strategy and the team's outstanding execution. And with our continued focus on operational excellence, portfolio optimization, and prudent capital acumen, we are well positioned as the market leader in the single-family rental industry. With that, I will turn the call over to Chris.