- Core FFO Growth: Delivered $1.87/core FFO per share in 2025, a 5.4% YoY increase.
- 2026 Guidance: Forecasts core FFO per share of $1.89–$1.95 (2.7–2.25% growth) with high 95% occupancy.
- Capital Deployment: Plans to invest $750M to add 1,900 homes via development and joint ventures.
- Disposition Activity: Sold 1,800 homes in 2025 for $570M, focusing on non-core assets and consolidation properties.
- Supply Challenges: Elevated supply in Sunbelt markets (Phoenix, Las Vegas) vs. constrained Midwest supply.
Guidance and Outlook
AMH guided for core FFO per share of $1.89 to $1.95 in 2026, representing year-over-year growth of 2.7%. The company expects occupancy to be in the high 95% area and contemplates core property operating expense growth of 2.75% driven by property tax growth. The guidance suggests a steady performance in the coming year, with a focus on maintaining occupancy and managing expenses.
Investment Strategy
AMH expects to deploy approximately $750 million of total capital in 2026, adding 1,900 new homes to its wholly-owned and joint venture portfolios. The company's disposition program will provide a highly attractive form of capital to reinvest back into its development program. As Christopher Lau noted, the company is taking a more patient approach to incremental buybacks this year, with a balance between keeping the development program in motion and maintaining the balance sheet and targeted leverage levels.
Valuation
With a P/E Ratio of 24.04 and an EV/EBITDA of 13.99, AMH's valuation suggests a premium for its steady performance and growth prospects. The company's Dividend Yield of 4.08% provides an attractive return for income investors. Analysts estimate next year's revenue growth at 5.0%, which is in line with the company's historical performance. The current valuation metrics imply that the market has priced in a moderate growth trajectory for AMH.
Operational Highlights
The company's development yields for the product it's starting today are around 5.3%, similar to 2025. AMH is sizing its capital deployment to be match-funded with disposition proceeds, freeing up incremental capital capacity for buybacks. The company has approximately $500 million of share repurchase authorization remaining and has capacity on the balance sheet for about a couple of hundred million dollars of incremental opportunistic capital deployment.