American Homes 4 Rent (AMH) Breakdown
Portfolio holdings, gross rental yields, purchase and sale activity, and more for AMH.
Executive Summary
American Homes 4 Rent (AMH) has built a portfolio of 59,000+ single-family rental properties across the country, with almost half of the portfolio located in Florida, Texas, North Carolina, and Georgia.
AMH reported strong Q4 2023 earnings, growing core funds from operations 8.8% year-over-year; along with the earnings report, CEO David Singelyn announced his plan to retire at the end of 2024 with current COO Bryan Smith named as a successor.
Gross yields remain healthy across metros, with most at a median value in the 12% to 15% range. Rent growth has slowed significantly across all metros compared to the high rent growth period of 2021.
Detailed information breaking down gross yields by metro, rent growth by metro, and real-time estimates of new lease rent growth are available at the end of the article.
Introduction
American Homes 4 Rent is the second largest public SFR REIT with an existing portfolio of 59,000+ homes. Founded in 2012, the company has built a presence in 20+ markets across the country. AMH's strategy focuses on acquiring high-quality homes in desirable neighborhoods and metros to attract higher-income tenants.
AMH reported strong Q4 2023 earnings, growing core funds from operations 8.8% year-over-year. As discussed by management in reviewing results and looking forward, acquisition channels remain largely paused due to cost of capital while dispositions continued, recycling capital at attractive economics.
A variety of factors make it an interesting time for both the company and the larger SFR industry: year-over-year rent growth slowing significantly, Blackstone’s acquisition of Tricon to fold into its existing SFR portfolio from its 2021 acquisition of Home Partners of America (to read more about Blackstone’s SFR exposure, check out our recent breakdown), and an expectation of multiple rate cuts over the next 12 months.
Unlike most traditional SFR funds, American Homes 4 Rent also operates a development company that has built over 8,000 new homes, with thousands more in the pipeline. In 2023, they were recognized as the 39th largest builder in the US.
For most of 2023, American Homes 4 Rent was a net seller of properties - that changed in Q4 when they bought 481 properties but only sold 241. Of the 481 homes acquired, 456 of were built by American Homes 4 Rent itself.
Data Overview
At SFR Analytics, we leverage nationwide deed, assessor, and rental listing data to track the single family rental market. To generate this analysis, we’ve:
Identified and reconciled the entities that American Homes 4 Rent has purchased homes under
Matched rental listing data to the underlying ownership information that links an entity to American Homes 4 Rent
Aggregated additional sources of data, like school ratings, to provide additional context about the neighborhoods where properties are held
Note: A more detailed breakdown of data and methodology used is available at the bottom of the post.
Analysis & Results
Geographic Distribution
American Homes 4 Rent has built an 59,000+ home portfolio spanning the county, with properties in the Northwest, Southwest, Midwest, and Southeast.
American Homes 4 Rent’s largest states by ownership are Florida and Texas, followed by North Carolina and Georgia. This state tilt towards Florida and Georgia is similar to public SFR REITs. For comparison, the top three states that Invitation Homes owns properties in are Florida, Georgia, and California; for Tricon, the top three states are Georgia, Texas, and Florida.
Purchase Price Distribution
Compared to workforce housing providers like SFR3 (profiled in a recent SFR post) and VineBrook Homes (profiled a few weeks ago), American Homes 4 Rent buys nicer homes in more desirable areas, targeting higher income tenants including families. The median square footage of homes owned by American Homes 4 Rent is 1,885 square feet, slightly larger than the median of 1,778 for homes owned by Invitation Homes is 1,778 and much larger compared to 1,200 square feet for SFR3 and 1,180 for VineBrook, both of which focus on affordability.
School Ratings
Of all funds profiled, American Homes 4 Rent had the highest school ratings distribution, closely followed by Invitation Homes. Ratings are notably higher than those for workforce housing providers like SFR3 and VineBrook.
Market-Level Gross Yields and Rent Growth
To find new rental tenants, American Homes 4 Rent has had to engage in record-levels of price cuts on listings, contributing to much lower year-over-year rent growth.
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