American Homes 4 Rent Reports Mixed Q3 Results with 5.5% Revenue Growth and Decreased Net Income

American Homes 4 Rent (AMH) reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, AMH generated rents and other single-family property revenues of $445.1 million, a 5.5% increase from $421.7 million in the same period of 2023. For the nine months, revenues rose to $1.3 billion from $1.2 billion, reflecting a 6.4% year-over-year growth. However, net income for the third quarter slightly decreased to $87.6 million from $88.1 million in 2023, while net income for the nine months fell to $324.3 million from $341.2 million. The decline in net income was attributed to a $5.3 million loss on early extinguishment of debt and $3.9 million in hurricane-related charges.

Total expenses for the third quarter increased to $393.1 million from $368.8 million, and for the nine months, expenses rose to $1.1 billion from $1.06 billion. The increase in expenses was driven by higher property operating and management costs, which were impacted by inflationary pressures and supply chain disruptions.

AMH's total real estate assets, net as of September 30, 2024, amounted to $11.8 billion, up from $11.8 billion at the end of 2023. The company reported a significant increase in cash and cash equivalents, reaching $162.5 million compared to $59.4 million at the end of 2023. This increase was supported by net cash provided by operating activities, which rose to $709.3 million from $623.4 million in the prior year.

Strategically, AMH has focused on expanding its single-family property portfolio, holding 59,902 properties across 21 states as of September 30, 2024, an increase from 59,332 properties at the end of 2023. The company also completed the acquisition of 1,673 single-family properties for $479.8 million in October 2024, funded through cash on hand and an undrawn revolving credit facility.

In terms of financing, AMH issued $600 million in unsecured senior notes in Q1 2024 and $500 million in Q2 2024, primarily to repay outstanding debt. The company also established a new $1.25 billion sustainability-linked revolving credit facility in Q3 2024.

Overall, while AMH experienced growth in revenues and property holdings, profitability faced challenges due to increased expenses and specific charges related to debt extinguishment and hurricane impacts.