American Homes 4 Rent at Citi Global Property CEO Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nick Joseph - Citi - Analyst : Yeah. I want to pick up on one thing. You said it was really on the development side and you mentioned as one of your differentiators. I think certainly people recognize it as being one of your bigger differentiators versus your public peers. On the call you gave this, sort of going in yield expectation around 5.5%. I do feel like that was maybe a little bit lower than what you've been talking about recently. So maybe talk about that first and then I also noticed a little bit of hesitancy to talk about what stabilized yields were, sort of saying it was a little bit too early to discuss stabilized yields. Maybe talk about why you think that's the case and sort of where you think stabilized yields will be, as you get more proof and more stuff enters the same store pool. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 4:00PM, AMH.N - American Homes 4 Rent at Citi Global Property CEO Conference

Question: Nick Joseph - Citi - Analyst : So I guess this year, how many are in the same sort of pool, just so like you know by the end of the year -- I guess the question is, by the end of the year, how long is it going to take another year or two to sort of understand what that growth trajectory looks like after you sort of -- as you stabilize it as you realize the efficiencies that you were talking about before?

Question: Nick Joseph - Citi - Analyst : So as you know, you sort of evolved your development platforms grown bigger, you've noticed things along the way in terms of economics and how things stabilize, I guess what have you changed from a structure, strategy, land management point of view, and you know how much of your G&A right now is sort of wrapped up in development and do you think that's scalable going forward at the around the current level? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 4:00PM, AMH.N - American Homes 4 Rent at Citi Global Property CEO Conference Obviously, there's always inflationary and other increases, but you know how scalable is the infrastructure that you've built?

Question: Nick Joseph - Citi - Analyst : Just on the development pipeline, how resilient is it or what type of disruption could you see from immigration policy and tariffs, I guess on the cost and availability of labor? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 4:00PM, AMH.N - American Homes 4 Rent at Citi Global Property CEO Conference

Question: Nick Joseph - Citi - Analyst : One of the more common questions I get asked is why take those types of risks around tariffs, construction, the uncertainty around the future if sort of market cap rates are fairly close to development yields, and maybe just disagree with that point, but you did recently do a good portfolio acquisition, I think, around a similar yields, maybe they're just so few and far between that. That it's almost not comparable, but basic question is sort of why have a larger development program, if you're able to get comparable economics on acquisitions.

Question: Nick Joseph - Citi - Analyst : Then just maybe the last question is on the funding. You have $400 million to $500 million of dispositions. Can you just talk to us, sort of what you're expecting in terms of cap rates on those sales you've been able to sell assets very, very accretively over time, so I was curious what's embedded in your guidance for this year. And then maybe just one quick one follow-up after that, but I'll start there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2025 / 4:00PM, AMH.N - American Homes 4 Rent at Citi Global Property CEO Conference

Question: Nick Joseph - Citi - Analyst : That was going to be the follow up and also if there's anything unique about because you know there's anything unique about it because people say, they're putting whatever cap rate on your portfolio but they keep seeing you sell things in the 3%s. Is there anything different about these assets that would make them trade at a lower implied cap rate than the rest of your portfolio?

Question: Nick Joseph - Citi - Analyst : But I guess, maybe a strange way to ask it is if you could just vacate your entire portfolio, you could sell it at a 3.5% to 4% cap. Like it generally like meaning that there's nothing special about these homes that's causing them to trade at a low implied cap rate. I understand that they're vacant. You can't only sell a vacant home, you can't sell one with someone living in it, but generally, like if we were to price your thing based on MLS prices, it would be at a 3.5% to 4% cap.

Question: Nick Joseph - Citi - Analyst : And the 30% increase you saw in foot traffic, that just seems like a huge number to me. I don't know, maybe just put that sort of in the context of what you've seen in the past. I don't know if some of it's maybe just a little bit more inventory than you had or advertising or what, but just again it seems like a very big number, but maybe tell us what the other forward indicators are that you look at, besides foot traffic and if that's telling you anything about how the sort of trajectory of the peak leasing season might look.

Question: Nick Joseph - Citi - Analyst : And so in light of that, and maybe you could tell us about sort of what your, overall renewal strategy is. Obviously, you're trying to price things, I think, 60, call it 60, 90 days ahead of time, where are you putting out renewals, what is the sort of forward retention look like? I assume it's part of your pricing management system. You kind of have something that projects occupancy, going forward or your risk around occupancy. So maybe just talk about your renewal strategy, and what retention is looking like based on how many people are accepting thus far.

Question: Nick Joseph - Citi - Analyst : And then if you -- I know it's close to sort of the call, but if you look at some of the markets, I think you mentioned Phoenix that was starting to show some signs of recovery. I was just looking at sort of the fourth-quarter data and it does seem like some of the weaker markets were maybe those where there's been this sort of buildup of home inventory from the from the builders, whether that's Jacksonville or Dallas. Just curious, how you think about that sort of shadow supply of unsold homes, how it competes with you, and if you started to see some of those markets that perhaps were suffering from that and maybe higher BTRs deliveries, start recovering during this early part of the year.

Question: Nick Joseph - Citi - Analyst : Sorry, you said the occupancy is at 96%?

Question: Nick Joseph - Citi - Analyst : So it was average -- it averaged 95.7%, I think in February.