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AMH NYSE· American Homes 4 Rent
Earnings report Q3 2023

AMH Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

AMH reported total revenue of $465.3 million for the nine months ended September 30, 2023. The company's revenue is derived from various segments, including traditional acquisition channels, the AMH Development Program, and the National Builder Program. Revenue from the addition of single-family properties to the portfolio through these channels decreased by $569.8 million during the nine months ended September 30, 2023, primarily due to a strategic scale back in the acquisition of properties through the National Builder Program and traditional channels. This adjustment is in response to the current macroeconomic environment and the housing market conditions.

Strengths

AMH demonstrated strong revenue growth in the latest quarter, with total revenue reaching $465.3 million. The company's management operates AMH and the Operating Partnership as one business, providing investors with a comprehensive view of the company's operations. The management's approach aligns with how the business is viewed and operated internally. Additionally, AMH's revenue is diversified across multiple segments, including traditional acquisitions, development programs, and acquisitions of newly built properties. This diversification helps mitigate risks associated with any single segment.

Challenges

Despite the overall strong revenue performance, AMH faced challenges in its traditional acquisition channel and the National Builder Program. The company strategically scaled back the acquisition of single-family properties through these channels, resulting in a decrease in cash outflows for property additions. This adjustment reflects the company's response to the current macroeconomic environment and the housing market conditions. However, it may impact the growth potential of these segments in the short term.

Noteworthy

During the first quarter of 2023, AMH issued and settled 8,000,000 Class A common shares, generating net proceeds of $298.4 million. These proceeds were utilized to repay indebtedness and for general corporate purposes. Additionally, the company entered into a new at-the-market common share offering program during the second quarter of 2023, allowing for the issuance of Class A common shares from time to time. This program provides AMH with flexibility in raising capital.

Summary

AMH reported strong revenue growth in the latest quarter, reaching $465.3 million. The company's revenue is derived from various segments, including traditional acquisitions, development programs, and acquisitions of newly built properties. While the company strategically scaled back acquisitions through certain channels, this adjustment reflects the current macroeconomic environment and housing market conditions. AMH's management approach, aligning the operations of AMH and the Operating Partnership, provides investors with a comprehensive view of the business. The company's ability to diversify revenue across multiple segments helps mitigate risks. Overall, AMH's revenue performance demonstrates resilience and adaptability in a challenging market environment.

Source documents

Form 10-Q  filed on Nov 03, 2023
49 pages scanned

Reference data

Company financials Q3 revenue 409M
Analyst estimates Q3 EPS beat by 43.61%
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