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American Homes Pleases Street

American Homes 4 Rent reported late Monday second-quarter funds from operations in line with Wall Street expectations, as the company remains aggressive in expanding its housing portfolio. The Agoura Hills single-family landlord reported FFO of $35.3 million (15 cents a share) for the quarter ended June 30. The company does not have comparable numbers for the second quarter last year, as it was prior to going public. Revenue increased 22 percent to $94.3 million. FFO is a REIT metric that adds amortization and depreciation expenses into net income to get a better picture of cash flow. Analysts had expected FFO of 15 cents on revenue of $93.2 million, according to Thomson Financial. On a net income basis, the company lost $12.3 million (-7 cents). “Our fully internalized operating platform is bearing fruit as evidenced by our strong increase in leased properties of nearly 2,700 homes, a portfolio occupancy of 86 percent and a strong and consistent stabilized portfolio occupancy,” said Chief Executive David P. Singelyn, in a prepared statement. American Homes has remained aggressive in growing its business, even as a lack of available stock and rising costs due to higher home prices are challenging the sector. Its total portfolio increased by 1,668 homes to 27,173 as of June 30 in selected submarkets in 22 states. In June, the company announced a venture with Alaska Permanent Fund Corp. to buy, renovate and lease homes, that could add up to $500 million. And last month, American Homes purchased Beazer Pre-Owned Rental Homes Inc., also an institutional landlord, for a little more than $260 million in debt and stock. In a separate announcement Monday, the company announced a 5 cents dividend for the third quarter, payable on Sept. 30 to shareholders of record as of Sept. 15 Shares closed up 14 cents, or less than 1 percent, to $18.11 on the New York Stock Exchange.

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