American Homes 4 Rent

Greetings and welcome to the AMH second quarter 2026 earning conference call. At this time, all participants are in a listen-only mode. The 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. I'll 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 Brian 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 in our filings with the SEC. All forward-looking statements speak only as of today, July 31, 2026. 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 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, Brian Smith.

Welcome, everyone, and thank you for joining us today. Before we get into our results, I would like to briefly touch on the Road to Housing Act, which went into law last month following overwhelming bipartisan support. This law reflects a thoughtful approach by policymakers to address housing affordability and allows the industry to move forward with greater certainty. It recognizes the important role that single family rentals play in the broader housing ecosystem and reinforces a number of aspects of our value proposition. First, It recognizes the role of new home construction in helping to address housing affordability. This highlights the importance of our in-house development program that continues to add newly built, high-quality homes across the country. Second, by grandfathering in existing single-family rental homes, the legislation acknowledges that professionally managed rental housing is a critical element of our country's housing landscape. Millions of families will continue to have the opportunity to live in high-quality homes and neighborhoods without the burdens of homeownership. And third, the legislation preserves the ability to consolidate existing rental portfolios, enabling AMH to continue delivering our best-in-class resident experience to additional households across the country. This creates value not only for our residents, but also for our shareholders as additional homes are optimized on the AMH platform. Now to earnings. Demand for high-quality single-family rental housing across our diversified portfolio footprint remains healthy. We delivered a strong first half to the year, highlighted by another great spring leasing season. The team efficiently turned and re-leased a record number of homes through the first six months of the year, while also tightly managing expenses. In addition to these expense controls, we also saw contributions from our development program and capital allocation decisions, leading us to raise the midpoint of our core FFO per share guidance by 3 cents to $1.95, which represents year-over-year growth of 4.3%. Turning to our second quarter same home results, average occupied days came in at 96% and new renewal and blended spreads were 1.4%, 3.2%, and 2.7% respectively, driving core revenue growth of 2.3%. Notably, both new and renewal rate growth accelerated through the quarter, reflecting healthy demand for our homes. This momentum carried into July, with occupancy holding at 96.1% and new renewal and blended spreads of 1.6%, 3.3%, and 2.8% respectively. Looking ahead to the second half of the year, we expect to see the benefits of our lease expiration profile where only one-third of 2026 lease expirations remain. This should translate into a meaningfully flatter occupancy curve and set us up well from an inventory and pricing perspective heading into 2027. Turning to investments, we continue to take a disciplined approach to capital allocation. Our development program remains on track. We are seeing modest improvement in initial yields, supported by our pre-leasing efforts and the team's continued success in keeping vertical construction costs flat. On the disposition front, demand from individual homebuyers on the MLS remains strong. We have taken this opportunity to accelerate our portfolio optimization efforts and are tracking ahead of plan, having sold over 1,300 homes in the first half of the year at cap rates in the 4% area. As a reminder, we are matched funding on balance sheet development this year with proceeds from our disposition program. Looking ahead, as I mentioned before, we are in a great position to capitalize on portfolio consolidation opportunities that arise. AMH has the platform and balance sheet to create meaningful value, but we will only do so when the cost of capital and economics makes sense. In closing, we had a great first half of the year and are optimistic about the future of the industry. I want to thank our teams across the country for their hard work and continued commitment to providing high quality housing and a superior resident experience to the families we serve. With that, I will turn the call over to Chris.