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1. Company Snapshot

1.a. Company Description

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family home rental industry and "American Homes 4 Rent" is fast becoming a nationally recognized brand for rental homes, known for high-quality, good value and tenant satisfaction.We are an internally managed Maryland real estate investment trust, or REIT, focused on acquiring, developing, renovating, leasing, and operating attractive, single-family homes as rental properties.As of September 30, 2020, we owned 53,229 single-family properties in selected submarkets in 22 states.

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1.b. Last Insights on AMH

American Homes 4 Rent faces negative drivers, including a decrease in institutional investor holdings, with Allspring Global Investments Holdings LLC trimming its stake by 88% during Q2. Despite beating Q3 FFO and revenue estimates, the company's growth prospects are being closely watched. With a "Moderate Buy" rating from 15 analysts, the average 1-year price target is $39.57. A new stake purchase by Sequoia Financial Advisors LLC may offset some concerns. The company's Q3 earnings report showed a 7.5% year-over-year increase in rents and other single-family property revenues.

1.c. Company Highlights

2. American Homes 4 Rent's Q3 2025 Earnings: Strong Performance and Optimistic Outlook

American Homes 4 Rent (AMH) reported a strong third quarter in 2025, with Core FFO per share of $0.47, beating analyst estimates of $0.46. The company's net income attributable to common shareholders was $99.7 million. Same-Home core revenue growth was 3.8%, driven by high occupancy rates and positive rental rate spreads. The company's growth programs, including portfolio optimization and prudent capital allocation, are expected to continue driving performance.

Publication Date: Nov -11

📋 Highlights
  • Core FFO Growth & Guidance Raised:: Core FFO per share grew 6.2% YoY, with updated 2025 guidance raised to $1.87 (5.6% growth) at the midpoint, driven by 3.8% same-home revenue growth and 95.9% occupancy.
  • Portfolio Expansion & Funding:: On track to deliver 2,300 homes in 2025 (1,900 wholly owned), funded by internal cash, EBITDA-driven debt capacity, and recycled capital from dispositions.
  • Balance Sheet Strength:: Achieved 100% unencumbered balance sheet, with $99.7M net income and $0.47 Core FFO per share in Q3, plus 25 bps guidance boost to Core FFO midpoint.
  • Operational Efficiency Gains:: Turnover rate fell 60 bps YoY, enabling 2% R&M cost growth control and 5.6% Core FFO per share growth, supported by AI-driven leasing and communication platforms.
  • Market Fundamentals & 2026 Momentum:: Midwest markets outperform with strong fundamentals; expects 2026 to benefit from low November move-outs, blended spreads, and market rent reacceleration, with development yields in mid-5% range.

Financial Highlights

The company's financial performance was robust, with Core FFO per share growth of 6.2% and guidance increased to $1.87 at the midpoint, representing 5.6% growth. The balance sheet is now 100% unencumbered, providing flexibility for future investments. Analysts estimate next year's revenue growth at 4.9%.

Operational Efficiency

AMH has become more sophisticated in analyzing its assets and identifying areas for growth, with AI initiatives expected to improve operational efficiency and resident satisfaction. The company's focus on lease expiration management has paid off, with a 60 basis point year-over-year decrease in turnover rate in the third quarter.

Valuation and Outlook

With a P/E Ratio of 26.45 and an EV/EBITDA of 16.49, the market is pricing in a certain level of growth for AMH. The company's Dividend Yield is 3.68%, providing a relatively attractive return for investors. As AMH looks to 2026, it expects to carry momentum into the new year, with a focus on blended spreads and market rent growth. Christopher Lau mentioned that the company typically outperforms industry estimates, and market rents may reaccelerate in 2026.

Growth Prospects

The development program's yield for 2025 is expected to be in the mid-5s, with potential for acceleration in the spring leasing season. The company's NOI margins improved in 2025, driven by strong top-line growth, expense control, and timing of property taxes. AMH expects to continue margin expansion in the future, driven by investments in controlling expenses.

Regulatory Environment

From a regulatory perspective, AMH has been relatively quiet, with no significant updates on single-family rentals. The company has been proactive in messaging and is paying close attention to macro-level developments.

3. NewsRoom

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Doves Take The Wheel

Nov -30

Source: seekingalpha.com

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B&I Capital AG Reduces Stock Position in American Homes 4 Rent $AMH

Nov -27

Source: defenseworld.net

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A Fed Divided

Nov -23

Source: seekingalpha.com

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Trump's 50-Year Mortgage Idea Could Be A Big Gift To REITs

Nov -20

Source: seekingalpha.com

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American Homes 4 Rent (NYSE:AMH) Receives $38.57 Average PT from Brokerages

Nov -18

Source: defenseworld.net

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Hawks In The House

Nov -16

Source: seekingalpha.com

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Winners And Losers Of REIT Earnings Season

Nov -14

Source: seekingalpha.com

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When The Stimulus Stops

Nov -09

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Single-family Homes

Expected Growth: 5.0%

American Homes 4 Rent's single-family home segment growth of 5.0% is driven by increasing demand for rental properties, particularly among millennials and baby boomers. Strong job market, low mortgage rates, and limited housing supply also contribute to growth. Additionally, the company's strategic acquisitions and efficient property management practices enhance revenue and occupancy rates.

7. Detailed Products

Single-Family Rental Homes

American Homes 4 Rent offers a wide range of single-family rental homes, from starter homes to luxury estates, in various locations across the United States.

Lease-to-Own Options

American Homes 4 Rent provides lease-to-own options, allowing renters to work towards homeownership while still enjoying the benefits of renting.

Rental Property Management

American Homes 4 Rent offers property management services, handling tasks such as maintenance, repairs, and rent collection for property owners.

Home Buying and Selling Services

American Homes 4 Rent provides home buying and selling services, connecting buyers and sellers with real estate agents and providing resources for a smooth transaction.

8. American Homes 4 Rent's Porter Forces

Forces Ranking

Threat Of Substitutes

American Homes 4 Rent operates in a niche market, providing single-family rental homes, which reduces the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative housing options, American Homes 4 Rent's focus on providing high-quality homes and excellent customer service helps to mitigate this threat.

Bargaining Power Of Suppliers

American Homes 4 Rent has a diversified supplier base, which reduces its dependence on any single supplier, thereby minimizing the bargaining power of suppliers.

Threat Of New Entrants

While there are some barriers to entry in the single-family rental home market, new entrants can still pose a threat to American Homes 4 Rent's market share, particularly if they have access to significant capital.

Intensity Of Rivalry

The single-family rental home market is highly competitive, with several large players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.13%
Debt Cost 4.97%
Equity Weight 60.87%
Equity Cost 7.46%
WACC 6.49%
Leverage 64.30%

11. Quality Control: American Homes 4 Rent passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Invitation Homes

A-Score: 6.1/10

Value: 3.6

Growth: 6.4

Quality: 7.1

Yield: 7.0

Momentum: 2.5

Volatility: 10.0

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Essex Property Trust

A-Score: 5.8/10

Value: 3.3

Growth: 5.6

Quality: 6.7

Yield: 7.0

Momentum: 3.5

Volatility: 9.0

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American Homes

A-Score: 5.6/10

Value: 2.9

Growth: 6.2

Quality: 6.2

Yield: 6.0

Momentum: 2.5

Volatility: 10.0

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Mid-America Apartment Communities

A-Score: 5.6/10

Value: 3.2

Growth: 5.2

Quality: 5.4

Yield: 7.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Camden Property

A-Score: 5.2/10

Value: 2.1

Growth: 4.2

Quality: 5.0

Yield: 7.0

Momentum: 3.0

Volatility: 10.0

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Apartment Income REIT

A-Score: 4.4/10

Value: 4.4

Growth: 4.3

Quality: 5.4

Yield: 4.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.83$

Current Price

30.83$

Potential

-0.00%

Expected Cash-Flows