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What changed in American Homes 4 Rent's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of American Homes 4 Rent's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+248 added−252 removedSource: 10-K (2025-02-21) vs 10-K (2024-02-23)

Top changes in American Homes 4 Rent's 2024 10-K

248 paragraphs added · 252 removed · 213 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeOur application and evaluation process includes obtaining appropriate identification, a thorough evaluation of credit and household income and a review of the applicant’s rental history. Although we require a minimum household credit score and income to rent ratio, all factors are taken into consideration during the tenant evaluation process, including an emphasis on rental payment history.
Biggest changeAlthough we require a minimum household credit score and income to rent ratio, all factors are taken into consideration during the tenant evaluation process, including an emphasis on rental payment history. On average, household credit scores and income to rent ratios of approved applicants are significantly in excess of our minimum requirements.
We have obtained capital through the issuance of equity securities, the use of unsecured credit facilities, the issuance of unsecured senior notes, preferred shares, and through asset-backed securitization transactions completed during 2014 and 2015. We also participate in investment vehicles with third-party investors as an alternative source of equity to grow our business.
We have obtained capital through the issuance of equity securities, 2 the use of unsecured credit facilities, the issuance of unsecured senior notes, preferred shares, and through asset-backed securitization transactions completed during 2014 and 2015. We also participate in investment vehicles with third-party investors as an alternative source of equity to grow our business.
If a home that is acquired remains occupied, the renovation process may be postponed. However, an assessment is made of potential renovation work that must be addressed once the property can be accessed. • Property Management. We have developed an extensive internal property management infrastructure, with modern systems, dedicated personnel and local offices.
If a home that is acquired remains occupied, the renovation process may 3 be postponed. However, an assessment is made of potential renovation work that must be addressed once the property can be accessed. • Property Management. We have developed an extensive internal property management infrastructure, with modern systems, dedicated personnel and local offices.
We believe that creating brand awareness will facilitate the growth and success of our company. We have established a toll-free number serviced by our call center and a website to provide a 2 direct portal to reach potential residents and to drive our brand presence.
We believe that creating brand awareness will facilitate the growth and success of our company. We have established a toll-free number serviced by our call center and a website to provide a direct portal to reach potential residents and to drive our brand presence.
Further, we have benefited from increases in long-term demand due to population growth in households desiring detached single-family homes, the surge in demand for larger living spaces driven by the proliferation of work-from-home arrangements, and increases in mortgage rates which have made home ownership more expensive. We expect these trends to continue into 2024.
Further, we have benefited from increases in long-term demand due to population growth in households desiring detached single-family homes, the surge in demand for larger living spaces driven by the proliferation of work-from-home arrangements, and increases in mortgage rates which have made home ownership more expensive. We expect these trends to continue into 2025.
We believe that we have been organized and operate in conformity with the requirements for qualification and taxation as a REIT under U.S. federal income tax laws for each of our taxable years commencing with our taxable year ended December 31, 2012 through the current taxable year ended December 31, 2023.
We believe that we have been organized and operate in conformity with the requirements for qualification and taxation as a REIT under U.S. federal income tax laws for each of our taxable years commencing with our taxable year ended December 31, 2012 through the current taxable year ended December 31, 2024.
We expect to satisfy the requirements for qualification and taxation as a REIT under the U.S. federal income tax laws for our taxable year ending December 31, 2024 and subsequent taxable years. We believe that the Operating Partnership is properly treated as a partnership for federal income tax purposes.
We expect to satisfy the requirements for qualification and taxation as a REIT under the U.S. federal income tax laws for our taxable year ending December 31, 2025 and subsequent taxable years. We believe that the Operating Partnership is properly treated as a partnership for federal income tax purposes.
Employees are guided through their professional journey by a development toolkit that identifies activities, experiences and milestones for their growth. This systematic review of skills and strengths facilitates a continuous process of leadership development, pipeline development and succession planning.
Employees are guided through their professional journey by a Development Growth Plan that identifies activities, experiences and milestones for their growth. This systematic review of skills and strengths facilitates a continuous process of leadership development, pipeline development and succession planning.
Our property management functions are 100% internalized, which we believe provides us with consistency of service, control and branding in the operation of our properties. • Establish a nationally recognized brand.
Our property management functions are generally internalized, which we believe provides us with consistency of service, control and branding in the operation of our properties. • Establish a nationally recognized brand.
See “Risk Factors—Risks Related to Our Business—Contingent or unknown liabilities could adversely affect our financial condition, cash flows and operating results” and “Risk Factors—Risks Related to the Real Estate Industry—Environmentally hazardous conditions may adversely affect our financial condition, cash flows and operating results.” Residential Housing Legislation and Regulations Various legislative and regulatory bodies have been focused on the shortage of residential housing in the U.S. and significant increases in the cost of housing.
See “Risk Factors—Risks Related to Our Business—Contingent or unknown liabilities associated with our property acquisitions could adversely affect our financial condition, cash flows and operating results” and “Risk Factors—Risks Related to the Real Estate Industry—Environmentally hazardous conditions may adversely affect our financial condition, cash flows and operating results.” Residential Housing Legislation and Regulations Various legislative and regulatory bodies have been focused on the shortage of residential housing in the U.S. and significant increases in the cost of housing.
On average, it has taken 3 approximately 20 to 90 days to complete the renovation process, which will fluctuate based on our overall acquisition volume as well as availability of construction labor and materials. Properties are typically leased approximately 20 to 40 days after completing the renovation process.
Historically, it has taken approximately 20 to 90 days to complete the renovation process, which will fluctuate based on our overall acquisition volume as well as availability of construction labor and materials. Properties are typically leased approximately 20 to 40 days after completing the renovation process.
We have an integrated operating platform that consists of 1,725 personnel dedicated to property management, acquisitions, development, marketing, leasing, financial and administrative functions.
We have an integrated operating platform that consists of 1,730 personnel dedicated to property management, acquisitions, development, marketing, leasing, financial and administrative functions.
We provide annual safety training for all employees, and every employee in a safety-sensitive position is required to complete additional relevant training. Our OSHA Recordable Incident Rate for 2023 was 1.7, which is below both the historical national average rate and our historical average rate and demonstrates our commitment to maintaining a safe and healthy environment.
We provide annual safety training for all employees, and every employee in a safety-sensitive position is required to complete additional relevant training. Our OSHA Recordable Incident Rate for 2024 was 1.4, which is below both the historical national average rate and our historical average rate and demonstrates our commitment to maintaining a safe and healthy environment.
As of December 31, 2023, we had 1,725 dedicated employees. None of our employees are covered by a collective bargaining agreement. Employee Engagement To index employee satisfaction and maintain a pulse on how our employees are doing, we use a survey platform that invites dialogue and feedback on a voluntary, confidential and anonymous basis.
As of December 31, 2024, we had 1,730 dedicated employees. None of our employees are covered by a collective bargaining agreement. Employee Engagement To index employee satisfaction and maintain a pulse on how our employees are doing, we use a survey platform that invites dialogue and feedback on a voluntary, confidential and anonymous basis.
The program also helps employees learn about the policies and initiatives developed by AMH to promote a fair and inclusive workplace and actionable ways to translate these insights into tools to become more equitable leaders.
The program also helps employees learn about the policies and 6 initiatives developed by AMH to promote a fair and inclusive workplace and actionable ways to translate these insights into tools to become more effective leaders.
We also have an Employee Resource Group program that is designed to foster an environment of acceptance and inclusion, enhance social and professional networking among employees, raise cultural awareness, and assist AMH in connecting with the communities in which we operate—all ultimately to strengthen our business, promote innovation, develop talent, and build a great workplace.
We also have an Employee Resource Group program that is designed to enhance social and professional networking among employees, raise cultural awareness, and assist AMH in connecting with the communities in which we operate—all ultimately to strengthen our business, promote innovation, develop talent, and build a great workplace.
Once land development requirements have been met, on average it takes approximately four to six months to complete the rental home vertical construction process. However, delivery of homes may be staggered to facilitate leasing absorption.
Once land development requirements have been met, on average it takes approximately five to seven months to complete the rental home vertical construction process. However, delivery of homes may be staggered to facilitate leasing absorption.
To ensure ongoing monitoring of trends, we regularly conduct pulse surveys of all employees. During the year ended December 31, 2023, we maintained a healthy 72% participation rate, with over 11,000 comments received.
To ensure ongoing monitoring of trends, we regularly conduct pulse surveys of all employees. During the year ended December 31, 2024, we maintained a healthy 72% participation rate, with nearly 11,000 comments received.
AMH is the general partner of, and as of December 31, 2023 owned approximately 87.7% of the common partnership interest in, the Operating Partnership. The remaining 12.3% of the common partnership interest was owned by limited partners. As the sole general partner of the Operating Partnership, AMH has exclusive control of the Operating Partnership’s day-to-day management.
AMH is the general partner of, and as of December 31, 2024 owned approximately 87.8% of the common partnership interest in, the Operating Partnership. The remaining 12.2% of the common partnership interest was owned by limited partners. As the sole general partner of the Operating Partnership, AMH has exclusive control of the Operating Partnership’s day-to-day management.
We provided approximately 92,500 hours of training to employees, an average of 54 hours per employee, during the year ended December 31, 2023. Workplace Safety The health and safety of our employees is a top priority. We have implemented company-wide policies that address occupational health and safety concerns and offer programs that address these topics.
We provided approximately 70,200 hours of training to employees, an average of 41 hours per employee, during the year ended December 31, 2024. Workplace Safety The health and safety of our employees is a top priority. We have implemented company-wide policies that address occupational health and safety concerns and offer programs that address these topics.
The Operating Partnership owns substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures, either directly or through its subsidiaries, conducts the operations of the Company’s business and is structured as a limited partnership with no publicly traded equity.
The Operating Partnership owns substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures, either directly or through its subsidiaries, conducts the operations of the Company’s business and is structured as a limited partnership with no publicly traded equity. AMH contributes all net proceeds from its various equity offerings to the Operating Partnership.
All full-time employees are eligible for our comprehensive benefits package, which includes robust healthcare and life insurance options, a 401(k) retirement plan with company contributions that vest immediately, an employee stock purchase plan, a tuition reimbursement plan, paid time off and our employee wellness programs.
All full-time employees are eligible for our comprehensive benefits package, which includes robust healthcare and life insurance options, a 401(k) retirement plan with company contributions that vest immediately, an employee stock purchase plan, a tuition reimbursement plan, paid time off and our employee wellness programs. During the year ended December 31, 2024, employee turnover was 25.1%.
However, if these trends diminish or mortgage rates decline, demand for our single-family rental homes may be impacted. In addition to these recent trends, we also believe the persistent national housing shortage and the progression of the millennial demographic into “family formation” years will continue to drive long-term demand for our single-family rental homes.
In addition to these recent trends, we also believe the persistent national housing shortage and the progression of the millennial demographic into “family formation” years will continue to drive long-term demand for our single-family rental homes.
Eviction is a last resort, and the eviction process is managed in compliance with local and state regulations. The eviction process is documented through a property management system with all correspondence and documentation stored electronically. • Tenant Relations and Property Maintenance. We are also responsible for most property repairs and maintenance and tenant relations.
The eviction process is documented through a property management system with all correspondence and documentation stored electronically. • Tenant Relations and Property Maintenance. We are also responsible for most property repairs and maintenance and tenant relations.
As such, no provision for U.S. federal income taxes has been included for the Operating Partnership. 1 Our principal executive office is located at 280 Pilot Road, Las Vegas, Nevada 89119. Our main telephone number is (702) 847-7800. Our website address is www.amh.com. The information contained on our website is not part of or incorporated by reference in this report.
As such, no provision for U.S. federal income taxes has been included for the Operating Partnership. Our principal executive office is located at 280 Pilot Road, Las Vegas, Nevada 89119. Our main telephone number is (702) 847-7800. Our website address is www.amh.com.
We have created a fully integrated internal development program, known as AMH Development, that constructs “built-for-rental” homes, which we believe represents one of the best available investments on a risk-adjusted return basis.
We believe we can achieve this objective by pursuing the following strategies: • Grow through our one-of-a-kind internal development program. We have created a fully integrated internal development program, known as AMH Development, that constructs “built-for-rental” homes, which we believe represents one of the best available investments on a risk-adjusted return basis.
As of December 31, 2023, the Company held 59,332 single-family properties in select submarkets of metropolitan statistical areas (“MSAs”) within 21 states, including 862 properties classified as held for sale, and 55,768 of our total properties (excluding properties held for sale) were occupied. The Company also held an additional 2,978 properties in unconsolidated joint ventures as of December 31, 2023.
As of December 31, 2024, the Company held 61,336 single-family properties in select submarkets of metropolitan statistical areas (“MSAs”) within 24 states, including 805 properties classified as held for sale, and 57,486 of our total properties (excluding properties held for sale) were occupied. The Company also held an additional 3,376 properties in unconsolidated joint ventures as of December 31, 2024.
On average, household credit scores and income to rent ratios of approved applicants are significantly in excess of our minimum requirements. We collect the majority of rent electronically via Automated Clearing House transfer or direct debit to the tenant’s checking account via a secure tenant portal on our website. An auto-pay feature is offered to facilitate rent payment.
We collect the majority of rent electronically via Automated Clearing House transfer or direct debit to the tenant’s checking account via a secure tenant portal on our website. An auto-pay feature is offered to facilitate rent payment. Tenants’ charges and payment history are available to tenants online through the tenant portal.
Tenants’ charges and payment history are available to tenants online through the tenant portal. Tenants who do not pay rent by the late payment date (typically within five calendar days of the due date) will receive notification and are assessed a late fee, in jurisdictions where allowable.
Tenants who do not pay rent by the late payment date (typically within five calendar days of the due date) will receive notification and are assessed a late fee, in jurisdictions where allowable. Eviction is a last resort, and the eviction process is managed in compliance with local and state regulations.
Our Business and Growth Strategies Our primary objective is to generate attractive risk-adjusted returns for our shareholders through dividends and capital appreciation by acquiring, developing, renovating, leasing and managing single-family homes as rental properties. We believe we can achieve this objective by pursuing the following strategies: • Grow through our one-of-a-kind internal development program.
The information contained on our website is not part of or incorporated by reference in this report. 1 Our Business and Growth Strategies Our primary objective is to generate attractive risk-adjusted returns for our shareholders through dividends and capital appreciation by acquiring, developing, renovating, leasing and managing single-family homes as rental properties.
Based on the terms of the Agreement of Limited Partnership of the Operating Partnership, as amended, OP units can be exchanged for shares on a one-for-one basis.
In return for those contributions, AMH receives Operating Partnership units (“OP units”) equal to the number of shares it has issued in the equity offering. Based on the terms of the Agreement of Limited Partnership of the Operating Partnership, as amended, OP units can be exchanged for shares on a one-for-one basis.
We establish rental rates centrally, using data-driven pricing models, supported by analysis from the local property management teams in each market. Factors considered in establishing the rental rates include a competitive analysis of rents, the size and age of the house, and many qualitative factors, such as neighborhood characteristics and access to quality schools, transportation and services.
Factors considered in establishing the rental rates include a competitive analysis of rents, the size and age of the house, and many qualitative factors, such as neighborhood characteristics and access to quality schools, transportation and services. We advertise the available properties through multiple channels, including our website, online marketplaces, MLS, yard signs and local brokers.
During the year ended December 31, 2023, employee turnover was 27.9%. 6 Diversity, Equity and Inclusion We believe that teams comprised of individuals with diverse identities, backgrounds, experiences, perspectives and viewpoints improve dialogue and decision-making in both the workplace and the boardroom, contributing to overall organizational effectiveness.
Inclusion and Belonging We believe that teams comprised of individuals with diverse identities, backgrounds, experiences, perspectives and viewpoints improve dialogue and decision-making in both the workplace and the boardroom, contributing to overall organizational effectiveness. We try to foster inclusion and belonging through three principles – embrace individual differences, treat people fairly and create a sense of community and belonging.
We advertise the available properties through multiple channels, including our website, online marketplaces, MLS, yard signs and local brokers. Substantially all of our homes are shown using technology-driven “self-guided” showings. Prospective tenants are evaluated in a standardized manner.
Substantially all of our homes are shown using technology-driven “self-guided” showings. Prospective tenants are evaluated in a standardized manner. Our application and evaluation process includes obtaining appropriate identification, a thorough evaluation of credit and household income and a review of the applicant’s rental history.
We directly manage all of our properties, including those held in our unconsolidated joint ventures, without the engagement of a third-party manager. • Marketing and Leasing. We are responsible for establishing rental rates, marketing and leasing properties (including screening prospective tenants) and collecting and processing rent.
We directly manage all of our properties, including those held in our unconsolidated joint ventures, generally without the engagement of a third-party manager. A third-party manager may be utilized temporarily subsequent to a bulk portfolio acquisition as we transition the properties into our property management infrastructure or evaluate the performance of potential new markets. • Marketing and Leasing.
First, our “Valuing Differences” learning series provides a foundation for creating awareness and understanding for all team members – 2023 marked the fourth year of this program, and the training is offered to all new employees within their first six months of employment.
These principles guide how we engage one another in the workplace. One way we promote a sense of belonging and encourage an environment of respect is through our “Valuing Differences” learning series which is offered to all new employees within their first six months of employment. The program helps employees develop tools for effective communication to strengthen working relationships.
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One difference between the Company and the Operating Partnership is $25.7 million of asset-backed securitization certificates issued by the Operating Partnership and purchased by AMH. The asset-backed securitization certificates are recorded as an asset-backed securitization certificates receivable by the Company and as an amount due from affiliates by the Operating Partnership.
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We are responsible for establishing rental rates, marketing and leasing properties (including screening prospective tenants) and collecting and processing rent. We establish rental rates centrally, using data-driven pricing models, supported by analysis from the local property management teams in each market.
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AMH contributes all net proceeds from its various equity offerings to the Operating Partnership. In return for those contributions, AMH receives Operating Partnership units (“OP units”) equal to the number of shares it has issued in the equity offering.
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However, if these trends diminish, mortgage rates decline, or there is an increase in supply of alternative housing options, demand for our single-family rental homes may be impacted.
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Enterprise-level and regional Town Halls, Employee Council meetings, biweekly field representative calls, information technology sessions and company-wide emails are examples of additional ways through which we deliver announcements, promote transparency and engage with our workforce. As a result of feedback delivered in these forums, our employees have played an instrumental role in shaping and advancing the implementation of workplace initiatives.
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Another form of employee engagement we’ve adopted is our social impact program, in which we provide company-sponsored volunteer opportunities, volunteer grants and an employee match program to enable employees to give back to their communities and support their favorite causes at work.
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Our diversity, equity and inclusion principles are – embrace individual differences, treat people fairly and create a sense of community and belonging. These principles guide how we engage one another in the workplace. We promote a sense of belonging and encourage an environment of respect through two flagship programs.
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Rooted in our core competency of “Values Differences,” the program helps employees develop greater awareness about personal biases and learn tools for effective communication to strengthen working relationships.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe face cybersecurity threats, including system, network or Internet failures, cyber-attacks, ransomware and other forms of malware, computer viruses, attachment to emails, phishing attempts or other scams. These attacks may also originate from persons inside our organization and persons/vendors with access to our systems.
Biggest changeDespite protective measures we have taken, our systems and systems maintained by third-party vendors with which we do business are vulnerable to damage from any number of sources. We face cybersecurity threats, including system, network or Internet failures, cyber-attacks, ransomware and other forms of malware, computer viruses, attachment to emails, phishing attempts or other scams.
If we incur a casualty loss that is not fully covered by third-party insurance, the value of our assets will be reduced by the amount of any such uninsured or self-insured loss, and we could experience a significant loss of capital invested and potential revenues in these properties and could potentially remain obligated under any recourse debt associated with the property.
If we 10 incur a casualty loss that is not fully covered by third-party insurance, the value of our assets will be reduced by the amount of any such uninsured or self-insured loss, and we could experience a significant loss of capital invested and potential revenues in these properties and could potentially remain obligated under any recourse debt associated with the property.
Furthermore, rent control laws or other regulations that may limit our ability to increase rental rates may affect our rental income. If rent controls unexpectedly became 14 applicable to certain of our properties, our revenue from and the value of such properties could be adversely affected. We believe these types of measures will continue given increasing political support.
Furthermore, rent control laws or other regulations that may limit our ability to increase rental rates may affect our rental income. If rent controls unexpectedly became applicable to certain of our properties, our revenue from and the value of such properties could be adversely affected. We believe these types of measures will continue given increasing political support.
Although a safe harbor is available, for which certain sales of property by a REIT are not subject to the 100% prohibited transaction tax, we 17 cannot assure you that we can comply with the safe harbor or that we will avoid owning property that may be characterized as held primarily for sale to customers in the ordinary course of business.
Although a safe harbor is available, for which certain sales of property by a REIT are not subject to the 100% prohibited transaction tax, we cannot assure you that we can comply with the safe harbor or that we will avoid owning property that may be characterized as held primarily for sale to customers in the ordinary course of business.
If we conclude that certain properties purchased in bulk portfolios do not fit our target investment criteria, we may decide to sell, rather than renovate and rent, these properties, which could take an extended 9 period of time and may not result in a sale at an attractive price.
If we conclude that certain properties purchased in bulk portfolios do not fit our target investment criteria, we may decide to sell, rather than renovate and rent, these properties, which could take an extended period of time and may not result in a sale at an attractive price.
The future availability of finished and partially finished developed lots and undeveloped land that meet our internal criteria depends on a number of factors outside our control, including land availability in general, competition with other homebuilders and land buyers for desirable property, inflation in land prices, zoning, allowable housing density, and other regulatory requirements.
The future availability of finished and partially finished developed lots and undeveloped land that meet our internal criteria depends on a number of factors outside our control, including land availability, competition with other homebuilders and land buyers for desirable property, inflation in land prices, zoning, allowable housing density, and other regulatory requirements.
If we experience a loss and our captive insurance company is required to pay under its insurance policies, we would ultimately record the loss to the extent of the required payment. Therefore, 10 insurance coverage provided by our captive insurance company should not be considered the equivalent of third-party insurance, but rather as a modified form of self-insurance.
If we experience a loss and our captive insurance company is required to pay under its insurance policies, we would ultimately record the loss to the extent of the required payment. Therefore, insurance coverage provided by our captive insurance company should not be considered the equivalent of third-party insurance, but rather as a modified form of self-insurance.
Members of the Company’s senior management, trustees and their affiliates collectively hold significant amounts of the Company’s Class A common shares, entitled to one vote each, and Class B common shares, entitled to 50 votes each and which convert into Class 15 A common shares on a one for one basis for every 49 partnership units converted, and Class A units in the Operating Partnership, which are nonvoting.
Members of the Company’s senior management, trustees and their affiliates collectively hold significant amounts of the Company’s Class A common shares, entitled to one vote each, and Class B common shares, entitled to 50 votes each and which convert into Class A common shares on a one for one basis for every 49 partnership units converted, and Class A units in the Operating Partnership, which are nonvoting.
For example, if we decide to acquire properties opportunistically to renovate in anticipation of immediate resale, we will need to conduct that activity through our TRS to avoid the 100% prohibited transactions tax. The 100% tax described above may limit our ability to enter into transactions that would otherwise be beneficial to us.
For example, if we decide to acquire properties 17 opportunistically to renovate in anticipation of immediate resale, we will need to conduct that activity through our TRS to avoid the 100% prohibited transactions tax. The 100% tax described above may limit our ability to enter into transactions that would otherwise be beneficial to us.
Under the Fast-Pay Stock Regulations, if stock of a REIT is structured so that dividends paid with respect to the stock are economically (in whole or in part) a return of the stockholder’s investment (rather than a return on the stockholder’s investment), the stock is characterized as “fast-pay stock,” resulting in the adverse tax consequences described below.
Under the Fast-Pay Stock Regulations, if stock of a REIT is structured so that dividends paid with respect to the stock are economically (in 19 whole or in part) a return of the stockholder’s investment (rather than a return on the stockholder’s investment), the stock is characterized as “fast-pay stock,” resulting in the adverse tax consequences described below.
If we issue preferred shares in a reopening at a price that exceeds the redemption price of such preferred shares by more than a de minimis amount, those shares could be considered to be “fast- 19 pay stock” under Treasury Regulations promulgated under Section 7701(l) of the Code (the “Fast-Pay Stock Regulations”).
If we issue preferred shares in a reopening at a price that exceeds the redemption price of such preferred shares by more than a de minimis amount, those shares could be considered to be “fast-pay stock” under Treasury Regulations promulgated under Section 7701(l) of the Code (the “Fast-Pay Stock Regulations”).
We may also experience delays in integrating the information systems and property and tenant information of the acquired properties which could adversely affect operating results. Our significant development activities expose us to additional operational and real estate risks, which may adversely affect our financial condition and operating results.
We may also experience delays in integrating the information systems and property and tenant information of the acquired properties which could adversely affect operating results. 9 Our significant development activities expose us to additional operational and real estate risks, which may adversely affect our financial condition and operating results.
If we violate covenants in our financing arrangements, we could be 13 required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms or at all.
If we violate covenants in our financing arrangements, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms or at all.
Because such laws vary by state and locality, we and any regional and local property managers we hire will need to take all appropriate steps to comply with all applicable landlord tenant laws, and we will need to incur supervisory and legal expenses to ensure such compliance.
Because such laws vary by state and locality, we and any regional and local property managers we hire will need to take all appropriate steps to comply with 14 all applicable landlord tenant laws, and we will need to incur supervisory and legal expenses to ensure such compliance.
These restrictions on ownership and transfer will not apply, however, if the Company’s board of trustees determines that it is no longer in our best interest to continue to qualify as 18 a REIT.
These restrictions on ownership and transfer will not apply, however, if the Company’s board of trustees determines that it is no longer in our best interest to continue to qualify as a REIT.
In addition, we may in certain circumstances be liable for the actions of our third-party partners or co-venturers. In addition, we may not be able to close joint ventures on the anticipated schedule or at all.
In 12 addition, we may in certain circumstances be liable for the actions of our third-party partners or co-venturers. In addition, we may not be able to close joint ventures on the anticipated schedule or at all.
However, we have not requested and do not intend to request a ruling from the Internal Revenue Service (the “IRS”) that we qualify as a REIT. As a result, we cannot assure you that we qualify or that we will remain qualified as a REIT.
However, 16 we have not requested and do not intend to request a ruling from the Internal Revenue Service (the “IRS”) that we qualify as a REIT. As a result, we cannot assure you that we qualify or that we will remain qualified as a REIT.
Failure to meet our financial covenants could result from, among other things, changes in our results of operations, the incurrence of additional debt, substantial impairments in the value of our properties or changes in general economic conditions.
Failure to meet our financial covenants could result from, among other things, changes in our results of operations, the incurrence of additional debt, substantial impairments in the 13 value of our properties or changes in general economic conditions.
Joint venture partners may have economic or other business interests or goals that are inconsistent with our 12 business interests or goals and may be in a position to take actions contrary to our policies or objectives.
Joint venture partners may have economic or other business interests or goals that are inconsistent with our business interests or goals and may be in a position to take actions contrary to our policies or objectives.
Although our leases permit some price increases to be charged back to our tenants, such as with increased energy prices, to the extent we are unable to offset these cost increases through higher rents or other measures, our operating results will be adversely affected.
Although our leases permit some price increases to be charged back to our tenants, such as with increased energy prices, to the extent we are unable to offset inflationary cost increases through higher rents or other measures, our operating results will be adversely affected.
In the ordinary course of our business we acquire and store sensitive data, including intellectual property, our proprietary business information and personally identifiable information of our prospective and current tenants, our employees and third-party service providers in our branch offices and on our networks and website.
In the ordinary course of our business we acquire and store sensitive data, including intellectual property, our proprietary business information and personally identifiable information of our prospective and current tenants, our employees and third-party service providers in our branch offices and on our networks and website, or the networks of our third-party vendors.
We routinely retain independent contractors and trade professionals to perform repair work and are exposed to all risks inherent in property renovation and maintenance, including potential cost overruns, increases in labor and materials costs, delays by contractors, delays in receiving work permits, certificates of occupancy and poor workmanship. Supply chain issues and labor force issues have increased these risks.
We routinely retain independent contractors and trade professionals to perform repair work and are exposed to all risks inherent in property renovation and maintenance, including potential cost overruns, increases in labor and materials costs, delays by contractors, delays in receiving work permits and certificates of occupancy and poor workmanship. Supply chain issues and labor force issues increase these risks.
Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, the loss of our residents, disruption to our operations and the services we provide to residents or damage our reputation, any of which could adversely affect our financial condition and operating results.
Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, the loss of our residents, disruption to our operations and the services we provide to residents, public disclosure of competitively sensitive information or damage our reputation, any of which could adversely affect our financial condition and operating results.
We are self-insured against many potential losses, and uninsured or underinsured losses relating to properties may adversely affect our financial condition, operating results, cash flows and ability to make distributions. We attempt to ensure that our properties are adequately insured to cover casualty losses.
We are self-insured against many potential losses, and uninsured or underinsured losses relating to properties may adversely affect our financial condition, operating results, cash flows and ability to make distributions. We attempt to adequately insure our properties to cover casualty losses.
Tenant relief laws, including laws restricting evictions, rent control laws and other regulations that limit our ability to increase rental rates may negatively impact our rental income and profitability. As landlord of numerous properties, we are involved regularly in evicting tenants who are not paying their rent or are otherwise in material violation of their lease.
Tenant relief laws, including laws restricting evictions, rent control laws and other regulations that limit our ability to increase rental rates may negatively impact our rental income and profitability. As the landlord of numerous properties, we may evict tenants who are not paying their rent or are otherwise in material violation of their lease.
Although none of the cyber-attacks and incidents we have identified to date has had a material impact on our business or operations, we expect to continue to identify cyber-attacks and cybersecurity incidents on our systems and those of third parties, and we cannot predict the potential impact of future cyber-attacks and cybersecurity incidents on our business.
Although none of the cyber-attacks and incidents we have identified to date has had a material impact on our business or operations, we expect to continue to identify cyber-attacks and cybersecurity incidents on our systems and the systems of our third-party vendors, and we cannot predict the potential impact of future cyber-attacks and cybersecurity incidents on our business.
Contingent or unknown liabilities could adversely affect our financial condition, cash flows and operating results. We may acquire properties that are subject to contingent or unknown liabilities for which we may have limited or no recourse against the sellers.
Contingent or unknown liabilities associated with our property acquisitions could adversely affect our financial condition, cash flows and operating results. We may acquire properties that are subject to contingent or unknown liabilities for which we may have limited or no recourse against the sellers.
All members of the Company’s senior management, trustees and their affiliates collectively hold Class A common shares or Class B common shares that represent approximately 19.5% of the current voting power of the Company as of December 31, 2023.
All members of the Company’s senior management, trustees and their affiliates collectively hold Class A common shares or Class B common shares that represent approximately 19.3% of the current voting power of the Company as of December 31, 2024.
Assuming the conversion of all of the Class A units held by these individuals into Class A common shares, they would own approximately 28.6% of the voting power of the Company based on the Company’s outstanding common shares as of December 31, 2023.
Assuming the conversion of all of the Class A units held by these individuals into Class A common shares, they would own approximately 28.3% of the voting power of the Company based on the Company’s outstanding common shares as of December 31, 2024.
The Hughes Family and affiliates own all of the Class B common shares and, together with the Class A common shares they own, hold 19.3% of the voting power of the Company.
The Hughes Family and affiliates own all of the Class B common shares and, 15 together with the Class A common shares they own, hold 19.1% of the voting power of the Company.
In addition, our strategy is to concentrate our properties in select geographic markets that we believe favor future growth in rents and valuations. For example, 58.4% of our properties are located in Atlanta, GA, Dallas-Fort Worth, TX, Charlotte, NC, Phoenix, AZ, Nashville, TN, Jacksonville, FL, Indianapolis, IN, Tampa, FL, Houston, TX and Raleigh, NC.
In addition, our strategy is to concentrate our properties in select geographic markets that we believe favor future growth in rents and valuations. For example, 58.0% of our operating properties are located in Atlanta, GA, Charlotte, NC, Dallas-Fort Worth, TX, Nashville, TN, Phoenix, AZ, Jacksonville, FL, Indianapolis, IN, Tampa, FL, Las Vegas, NV and Houston, TX.
As more well-capitalized companies pursue our business strategy, we expect competition will continue to intensify. As a result, the purchase price of potential acquisitions may be significantly elevated, or we may be unable to acquire properties on desirable terms or at all. Our success depends on us attracting and retaining quality tenants.
If more well-capitalized companies pursue our business strategy, competition may intensify and the purchase price of potential acquisitions may be significantly elevated, or we may be unable to acquire properties on desirable terms or at all. Our success depends on us attracting and retaining quality tenants.
Inflation has significantly increased since the start of 2021 and continues to remain at elevated levels compared to years prior to 2021. Inflationary pressures have increased our direct and indirect operating and development costs, including for labor at the corporate, property management and development levels, third-party contractors and vendors, building materials, insurance, transportation and taxes.
We have experienced periods of high inflation since the start of 2021 and inflation continues to remain at elevated levels compared to years prior to 2021. Inflationary pressures increase our direct and indirect operating and development costs, including for labor at the corporate, property management and development levels, third-party contractors and vendors, building materials, insurance, transportation and taxes.
We have been and we expect we will in the future be subject to third party attempts to gain unauthorized access to our systems in order to disrupt operations, corrupt data or steal confidential information, including information regarding our residents, prospective tenants, and employees.
We have been and we expect we will in the future be subject to third party attempts to gain unauthorized access to our systems and systems maintained by third-party vendors with which we do business in order to disrupt operations, corrupt data or steal confidential information, including information regarding our residents, prospective tenants, and employees.
Information security risks have generally increased in recent years due to the rise in new technologies and the increased sophistication and activities of perpetrators of cyber-attacks.
Information security risks have generally increased in recent years due to the rise in new technologies, such as artificial intelligence (AI), and the increased sophistication and activities of perpetrators of cyber-attacks.
Our senior management, trustees and their affiliates may have significant voting influence due to their stock ownership.
Risks Related to Our Ownership, Organization and Structure Our senior management, trustees and their affiliates may have significant voting influence due to their stock ownership.
Quantitative and Qualitative Disclosures About Market Risk — Interest Rate Risk.” Our revolving credit facility, unsecured senior notes and securitizations contain financial and operating covenants that could restrict our business and investment activities.
For more information on interest rate risk, see Part II, “Item 7A. Quantitative and Qualitative Disclosures About Market Risk—Interest Rate Risk.” Our revolving credit facility, unsecured senior notes and securitizations contain financial and operating covenants that could restrict our business and investment activities.
In some circumstances, we may be required to pay additional dividends or, in lieu of that, corporate income tax, possibly including interest and penalties. As a result, we may be required to borrow in order to pay additional dividends or taxes, and the payment of such taxes could cause us to have less cash available to distribute to our shareholders.
As a result, we may be required to borrow in order to pay additional dividends or taxes, and the payment of such taxes could cause us to have less cash available to distribute to our shareholders.
The financial costs could be in excess of our insurance coverage or not be covered by our insurance coverage. Any governmental legal proceeding, whether or not resolved adversely, could also negatively impact our reputation. Recent significant increases in interest rates could adversely impact us and our tenants.
The financial costs could be in excess of our insurance coverage or not be covered by our insurance coverage. Any governmental legal proceeding, whether or not resolved adversely, could also negatively impact our reputation. Elevated interest rates could adversely impact us and our tenants. Since 2022, interest rates have been at relatively high levels compared to recent years.
Risks Related to the Real Estate Industry Environmentally hazardous conditions may adversely affect our financial condition, cash flows and operating results. Under various federal, state and local environmental laws, a current or previous owner or operator of real property may be liable for the cost of removing or remediating hazardous or toxic substances on such property.
Under various federal, state and local environmental laws, a current or previous owner or operator of real property may be liable for the cost of removing or remediating hazardous or toxic substances on such property.
Since 2022, interest rates have been at relatively high levels compared to recent years. This has increased our cost of new debt or preferred capital, increased the borrowing costs under our credit facility, and has impacted the relative attractiveness of the dividend yield on our common shares.
This has increased our cost of new debt or preferred capital, increased the borrowing costs under our credit facility, and has impacted the relative attractiveness of the dividend yield on our common shares.
To satisfy the REIT distribution requirements, we may be forced to take certain actions to raise funds if we have insufficient cash flow which could materially and adversely affect us and the trading price of our common or preferred shares.
The share ownership restrictions of the Code for REITs and the ownership and transfer restrictions in our declaration of trust may inhibit market activity in our equity shares and restrict our business combination opportunities. 18 To satisfy the REIT distribution requirements, we may be forced to take certain actions to raise funds if we have insufficient cash flow which could materially and adversely affect us and the trading price of our common or preferred shares.
From time to time we may dispose of real properties in transactions that are intended to qualify as tax-deferred exchanges under Section 1031 of the Code (“Section 1031 Exchanges”). It is possible that the qualification of a transaction as a Section 1031 Exchange could be successfully challenged and determined to be currently taxable.
We have in the past and may from time to time in the future dispose of real properties in transactions that are intended to qualify as tax-deferred exchanges under Section 1031 of the Code (“Section 1031 Exchanges”).
A downturn or slowdown in the rental demand for single-family housing generally, or in our target markets specifically, caused by adverse economic, regulatory or environmental conditions, or other events, would have a greater impact on our operating results than if we had more diversified investments.
A downturn or slowdown in the rental demand for single-family housing generally, or in our target markets specifically, caused by adverse economic, regulatory or environmental conditions, or other events, would have a greater impact on our operating results than if we had more diversified investments. 8 Similarly, given our geographic concentrations, a natural disaster, such as an earthquake, tornado, hurricane, flood or wildfire in one of our key markets could have a significant negative effect on our financial condition and results of operations.
In addition, pursuant to a provision in the Company’s bylaws, we have opted out of the MGCL’s control share provisions of the MGCL.
In addition, pursuant to a provision in the Company’s bylaws, we have opted out of the MGCL’s control share provisions of the MGCL. However, the Company’s board of trustees may by resolution opt into the business combination provisions and we may, by amending the Company’s bylaws, opt into the control share provisions of the MGCL in the future.
The degree and pace of these changes have had and may continue to have adverse macroeconomic effects that have and may continue to have adverse impacts on our tenants, including as a result of economic recession, increased unemployment, and increased financing costs. For more information on interest rate risk, see Part II, “Item 7A.
The degree and pace of these changes have had and may continue to have adverse macroeconomic effects that have and may continue to have adverse impacts on our tenants, including as a result of economic recession, increased unemployment or underemployment, slowing wage growth, decreasing purchasing power due to inflation, and increased financing costs.
Our information technology networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations.
These attacks may also originate from persons inside our organization and persons/vendors with access to our systems. Our 11 information technology networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations.
However, the Company’s board of trustees may by resolution opt into the business combination provisions and we may, by amending the Company’s bylaws, opt into the control share provisions of the MGCL in the future. 16 Risks Related to Qualification and Operation as a REIT Failure to qualify as a REIT, or failure to remain qualified as a REIT, would cause us to be taxed as a regular corporation, which would substantially reduce funds available for distribution to our shareholders.
Risks Related to Qualification and Operation as a REIT Failure to qualify as a REIT, or failure to remain qualified as a REIT, would cause us to be taxed as a regular corporation, which would substantially reduce funds available for distribution to our shareholders.
In such cases, our taxable income would increase as would the amount of distributions we are required to make to satisfy our REIT distribution requirements and to avoid the imposition of an entity-level tax. This could increase the dividend income to our stockholders by reducing any return of capital they receive.
It is possible that the qualification of a transaction as a Section 1031 Exchange could be successfully challenged and determined to be currently taxable. In such cases, our taxable income would increase as would the amount of distributions we are required to make to satisfy our REIT distribution requirements and to avoid the imposition of an entity-level tax.
While we intend to vigorously defend any non-meritorious action or challenge, we cannot assure you that we will not be subject to expenses and losses that may adversely affect our operating results. Government investigations or legal proceedings brought by governmental authorities may result in significant costs and expenses and reputational harm and may divert resources from our operations.
While we intend to vigorously defend any non-meritorious action or challenge, we cannot assure you that we will not be subject to expenses and losses that may adversely affect our operating results. New laws and regulations could impede our ability to operate or grow our business.
Notwithstanding our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. 11 Despite protective measures we have taken, our systems and systems maintained by third-party vendors with which we do business are vulnerable to damage from any number of sources.
The secure processing and maintenance of this information is critical to our operations and business strategy. Notwithstanding our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions.
There are also some losses, including losses from floods, windstorms, fires, earthquakes, hurricanes, acts of war, acts of terrorism or riots, that may not always be insured against or that are not generally fully insured against because it is not practical to do so.
There are also certain losses, including losses from floods, windstorms, fires, earthquakes, hurricanes, acts of war, acts of terrorism or riots, that may not be fully insured or insured at all due to the impracticability or limitations of coverage. In addition, changes in the cost or availability of insurance could expose us to greater uninsured or self-insured casualty losses.
Removed
Similarly, given our 8 geographic concentrations, a natural disaster, such as an earthquake, tornado, hurricane, flood or wildfire in one of our key markets could have a significant negative effect on our financial condition and results of operations.
Added
We may be subject to or impacted by new laws and regulations, including zoning requirements, affordability mandates, tariffs and immigration restrictions, that could impede our ability to operate or grow our business, including by restricting institutional ownership of single-family homes.
Removed
In addition, changes in the cost or availability of insurance could expose us to greater uninsured or self-insured casualty losses.
Added
Any such laws or regulations could impose significant costs, could require that we modify or cease existing business practices or divest properties, and could restrict the locations where we can operate our business. Government investigations or legal proceedings brought by governmental authorities may result in significant costs and expenses and reputational harm and may divert resources from our operations.
Removed
The secure processing and maintenance of this information is critical to our operations and business strategy.
Added
Our use of artificial intelligence could expose us to various risks. We have begun to utilize AI technologies in various aspects of our business. AI technologies are susceptible to errors and other malfunctions which could lead to operational challenges and reputational risks.
Removed
Risks Related to Our Ownership, Organization and Structure AMH’s fiduciary duties as the general partner of the Operating Partnership could create conflicts of interest, which may impede business decisions that could benefit our shareholders.
Added
In addition, we may be subject to increasing regulations related to our use of AI, including regulations related to privacy, data security, and intellectual property rights, which could expose us to legal risks. Risks Related to the Real Estate Industry Environmentally hazardous conditions may adversely affect our financial condition, cash flows and operating results.
Removed
As the sole general partner of the Operating Partnership, AMH has a fiduciary duty to the other limited partners in the Operating Partnership, which may conflict with the interests of the Company’s shareholders.
Added
This could increase the dividend income to our stockholders by reducing any return of capital they receive. In some circumstances, we may be required to pay additional dividends or, in lieu of that, corporate income tax, possibly including interest and penalties.
Removed
The limited partners of the Operating Partnership have agreed that, in the event of a conflict in the fiduciary duties owed by AMH to the Company’s shareholders and in AMH’s capacity as the general partner of the Operating Partnership to such limited partner, AMH is under no obligation to give priority to the interests of such limited partner.
Removed
In addition, the limited partners have the right to vote on certain amendments to the Agreement of Limited Partnership of the Operating Partnership and to approve certain amendments that would adversely affect their rights. These voting rights may be exercised in a manner that conflicts with the interests of the Company’s shareholders.
Removed
The share ownership restrictions of the Code for REITs and the ownership and transfer restrictions in our declaration of trust may inhibit market activity in our equity shares and restrict our business combination opportunities.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

19 edited+2 added−4 removed12 unchanged
Biggest changeAlthough we make efforts to maintain the security and integrity of our networks and systems, and the proprietary, confidential and personal information that resides on or is transmitted through them, and we have implemented various cybersecurity policies and procedures to manage the risk of a security incident or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security incidents or disruptions would not be successful or damaging.
Biggest changeCybersecurity Risks As of December 31, 2024, we have not had any known instances of material cybersecurity incidents. However, there can be no assurance that our security efforts and measures will be effective or that attempted security incidents or disruptions would not be successful or damaging.
See “Risk Factors–Risks Related to our Business–If our confidential information is compromised or corrupted, including as a result of a cybersecurity incident, our business operations and reputation could be damaged, which could adversely affect our financial condition and operating results.”
See “Risk Factors—Risks Related to our Business—If our confidential information is compromised or corrupted, including as a result of a cybersecurity incident, our business operations and reputation could be damaged, which could adversely affect our financial condition and operating results.” 22
In addition, although the Company maintains cyber risk insurance to provide some coverage for certain risks arising out of data and network breaches, there can 22 be no assurance that our cyber risk insurance coverage will be sufficient in the event of a cyber-attack.
In addition, although the Company maintains cyber risk insurance to provide some coverage for certain risks arising out of data and network breaches, there can be no assurance that our cyber risk insurance coverage will be sufficient in the event of a cyber-attack.
The Disclosure Committee also consults with the chair of the Audit Committee of the board of trustees in making determinations regarding applicable SEC reporting requirements. The board of trustees considers cybersecurity as part of its broader consideration of business strategy and risk management.
The Disclosure Committee also consults with the chair of the Audit Committee of the board of trustees in making determinations regarding applicable SEC reporting requirements. The board of trustees considers cybersecurity as part of its broader consideration of business strategy and enterprise risk management.
Our CISO has more than 10 years of experience in cybersecurity and IT compliance, is a member of InfraGard, a national non-profit organization serving as a public-partnership between U.S. businesses and the Federal Bureau of Investigation, and is a member of the Cal Poly Pomona Cyber Security Advisory Council.
Our CISO has significant experience in cybersecurity and IT compliance, is a member of InfraGard, a national non-profit organization serving as a public-partnership between U.S. businesses and the Federal Bureau of Investigation, and is a member of the Cal Poly Pomona Cyber Security Advisory Council.
Our CTO and CISO conduct quarterly cybersecurity reviews for our Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), and Chief Legal Officer (“CLO”). Our CISO reports to our CTO, who reports to our CFO.
Our CTO and CISO conduct quarterly cybersecurity reviews for our Chief Executive Officer (“CEO”), CFO, and Chief Legal Officer (“CLO”).
Our cybersecurity team, with the assistance of an outside cybersecurity firm, continuously monitors for threats to keep our systems secure. Cybersecurity incidents may also be detected through a variety of means, which may include, but are not limited to, employee notification to our IT service center, notification from external parties (e.g., customers, vendors, or service providers), and automated event-detection notifications.
Cybersecurity incidents may also be detected through a variety of means, which may include, but are not limited to, employee notification to our IT service center, notification from external parties (e.g., customers, vendors, or service providers), and automated event-detection notifications.
We are committed to implementing leading data protection standards, and have a comprehensive set of written policies and standards that follow the guidance of the industry standard cybersecurity frameworks. 20 Management and Board Oversight We have a dedicated cybersecurity team led by our Vice President of Information Security (“CISO”), who reports directly to our Chief Technology Officer (“CTO”).
Our cybersecurity program includes written policies and standards that follow the guidance of well-recognized industry cybersecurity frameworks. 20 Management and Board Oversight We have a dedicated cybersecurity team led by our Vice President of Information Security (“CISO”), who reports on cybersecurity directly to our Chief Technology Officer (“CTO”), who reports to our Chief Financial Officer (“CFO”).
We also recognize that third-parties that provide information systems we use can be subject to cybersecurity incidents that could impact us. To mitigate third party risk, we maintain a Vendor Integrity Code, which is designed to require our third-party vendors to comply with our requirements for maintenance of passwords, as well as other confidentiality, security, and privacy procedures.
To mitigate third party risk, we maintain a Vendor Integrity Code, which is designed to require our third-party vendors to comply with our requirements for maintenance of passwords, as well as other confidentiality, security, and privacy procedures.
Once a potential cybersecurity incident is identified, including a third-party cybersecurity event, the incident response team designated pursuant to the incident response plan follows the procedures set forth in the plan to investigate the potential incident, including classifying the nature of the event (e.g. ransomware, personal data breach, intellectual property breach, theft or fraud) and assessing the severity of the event and sensitivity of any compromised data according to preset criteria.
Once a potential cybersecurity incident is identified, including a third-party cybersecurity event, the incident response team designated pursuant to the incident response plan follows the procedures set forth in the plan to investigate the potential incident, including classifying the nature and severity of the event.
We have also retained an outside cybersecurity firm which would assist with containment, eradication, and recovery efforts, as needed. Further, the Company also maintains cyber risk insurance to provide some coverage for certain risks arising out of data and network breaches, and the Audit Committee annually reviews such coverage.
Further, the Company also maintains cyber risk insurance to provide some coverage for certain risks arising out of data and network breaches, and the Audit Committee annually reviews such coverage.
The Company’s incident response plan provides clear communication protocols, including with respect to members of senior management, including the CEO, CFO, COO and CLO, the Audit Committee, internal and external counsel, particularly with respect to legal obligations to report the incident to tenants, regulators and law enforcements, and to the Disclosure Committee and external counsel with respect to the Company’s SEC reporting obligations.
The Company’s incident response plan provides clear communication protocols, including with respect to members of senior management, which may include, depending on the incident’s classification and other circumstances, the CEO, CFO, COO and CLO, the Audit Committee, the Disclosure Committee, and internal and external counsel.
The Audit Committee, which consists solely of independent trustees and whose chair has information security experience, receives quarterly updates with respect to the cybersecurity program, addressing topics such as current threat levels, program enhancements and vulnerability testing.
Our board of trustees has delegated to the Audit Committee the responsibility of overseeing the Company’s risk management program, including the cybersecurity program. The Audit Committee, which consists solely of independent trustees and whose chair has information security experience, receives quarterly updates with respect to the cybersecurity program.
Post-Incident Activity After recovery, the Company performs a review of the incident to identify and implement enhancements to the cybersecurity program that can mitigate the risk or severity of future incidents. The CISO generally oversees the implementation of enhancements identified through these reviews with oversight by senior management and the Audit Committee as appropriate.
In addition, the incident response plan considers communications and reporting to tenants, regulators and law enforcement. Post-Incident Activity After recovery, the Company performs a review of the incident to identify potential enhancements to the cybersecurity program that can mitigate the risk or severity of future incidents. The results of these reviews are shared with management and the Audit Committee.
Potentially significant cybersecurity incidents are escalated to the Disclosure Committee, which makes determinations regarding SEC reporting obligations related to the cybersecurity incident. Containment, Eradication, Recovery, and Reporting With every cybersecurity incident, the highest priority of the incident response team is to contain the cybersecurity incident as quickly as possible.
Potentially significant cybersecurity incidents are escalated to the Disclosure Committee, which makes determinations regarding SEC reporting obligations related to the cybersecurity incident. Containment, Eradication, Recovery, and Reporting The incident response team executes our incident response plan to respond to the cybersecurity incident and coordinate resources and communication protocols. The incident response team also directs and coordinates eradication and recovery efforts.
Eradication and recovery activities depend on the nature of the cybersecurity incident and may include rebuilding systems and/or hosts, replacing compromised files with clean versions, validation of files or data that may have been affected, increased network monitoring or logging to identify recurring attacks, or employee re-training, among other things.
Eradication and recovery activities depend on the nature of the cybersecurity incident and may include rebuilding systems and/or hosts, replacing compromised files with clean versions or validation of files or data that may have been affected. We have also retained an outside cybersecurity firm which would assist with containment, eradication, and recovery efforts, as needed.
The Audit Committee oversees our compliance with industry standard cybersecurity frameworks, our cybersecurity insurance coverage, cybersecurity-related internal controls, cybersecurity training provided to company personnel, penetration testing, incident response plan updates, and our business continuity plan. The Audit Committee also periodically evaluates our cyber strategy to ensure its effectiveness, including benchmarking against our peers.
As part of its oversight, the Audit Committee may, for example, receive updates regarding assessments of our alignment with certain industry cybersecurity frameworks, our cybersecurity insurance coverage, cybersecurity-related internal controls, cybersecurity training provided to company personnel, results of penetration testing, and revisions to the incident response plan and business continuity plan.
Third-party IT vendors are also subject to additional diligence such as questionnaires, inquiries, and review of System and Organization Controls (SOC) 1 and 2 reports, when relevant. Detection and Analysis We have implemented controls aligned with industry guidelines and applicable statutes and regulations to identify threats, detect attacks and protect the integrity of our information assets.
Third-party IT vendors determined to present a higher risk are also subject to additional diligence such as questionnaires, inquiries, and review of System and Organization Controls (SOC) 1 and 2 reports, when relevant.
Therefore, a key element of our prevention efforts is employee training on our data privacy and cyber security procedures. For example, all new hires receive mandatory privacy and information security training. In addition, current employees must complete mandatory annual 21 cybersecurity and data trainings, which are supplemented by regular phishing and other cyber-related testing that we conduct throughout the year.
Therefore, a key element of our prevention efforts is training employees on our data privacy and cyber security procedures. For example, new hires receive mandatory privacy and information security training.
Removed
Our board of trustees has delegated to the Audit Committee the responsibility of overseeing the Company’s risk management program, including the company’s risk assessment, risk management and risk mitigation policies and programs. A key part of this responsibility is overseeing the Company’s cybersecurity program.
Added
In addition, current employees must complete mandatory annual cybersecurity and data trainings, which are supplemented by regular phishing and other cyber-related awareness activities that we conduct throughout the year. 21 We also recognize that third-parties that provide information systems we use can be subject to cybersecurity incidents that could impact us.
Removed
A cybersecurity incident is considered contained when no additional harm can be caused and the focus shifts to remediation. The incident response team executes our incident response plan to respond to the cybersecurity incident and coordinate resources and communication protocols. The incident response team also directs and coordinates eradication and recovery efforts.
Added
Detection and Analysis We have implemented controls aligned with industry guidelines and applicable statutes and regulations to identify threats, detect attacks and protect the integrity of our information assets. Our cybersecurity team, with the assistance of an outside cybersecurity firm, continuously monitors for threats to keep our systems secure.
Removed
Cybersecurity Risks As of December 31, 2023, we are not aware of any material cybersecurity incidents.
Removed
However, we routinely face risks of potential incidents, whether through cyber-attacks or cyber intrusions over the Internet, ransomware and other forms of malware, computer viruses, attachment to emails, phishing attempts, extortion or other scams that we are able to prevent or sufficiently mitigate harm from.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed1 unchanged
Biggest changeYear Purchased or Delivered Atlanta, GA 5,853 10.0 % $ 1,311.0 10.2 % $ 223,985 2,174 17.3 2016 Dallas-Fort Worth, TX 4,055 6.9 % 711.5 5.5 % 175,469 2,095 19.5 2014 Charlotte, NC 4,089 7.0 % 899.9 7.0 % 220,086 2,110 17.7 2015 Phoenix, AZ 3,364 5.8 % 718.5 5.6 % 213,588 1,841 19.2 2016 Nashville, TN 3,319 5.7 % 823.0 6.4 % 247,960 2,117 16.1 2016 Jacksonville, FL 3,101 5.3 % 676.1 5.2 % 218,020 1,928 14.4 2016 Indianapolis, IN 2,848 4.9 % 495.1 3.8 % 173,841 1,927 20.9 2014 Tampa, FL 2,901 5.0 % 673.6 5.2 % 232,187 1,948 15.2 2016 Houston, TX 2,402 4.1 % 427.5 3.3 % 177,995 2,082 18.1 2014 Raleigh, NC 2,179 3.7 % 434.3 3.4 % 199,320 1,889 17.7 2015 Cincinnati, OH 2,127 3.6 % 418.9 3.3 % 196,952 1,842 21.0 2014 Columbus, OH 2,154 3.7 % 421.5 3.3 % 195,675 1,880 21.0 2015 Las Vegas, NV 2,169 3.7 % 618.8 4.8 % 285,270 1,937 11.7 2017 Salt Lake City, UT 1,901 3.3 % 579.1 4.5 % 304,605 2,245 17.2 2016 Orlando, FL 1,999 3.4 % 437.6 3.4 % 218,923 1,911 18.3 2016 Greater Chicago area, IL and IN 1,541 2.6 % 294.5 2.3 % 191,105 1,865 22.3 2013 Charleston, SC 1,535 2.6 % 352.2 2.7 % 229,471 1,962 13.0 2017 San Antonio, TX 1,263 2.2 % 249.2 1.9 % 197,277 1,919 14.9 2015 Seattle, WA 1,161 2.0 % 383.8 3.0 % 330,534 2,006 13.6 2017 Savannah/Hilton Head, SC 1,051 1.8 % 222.0 1.7 % 211,204 1,887 15.2 2016 All Other (2) 7,458 12.7 % 1,737.6 13.5 % 232,983 1,912 17.8 2015 Total/Average 58,470 100.0 % $ 12,885.7 100.0 % $ 220,381 1,992 17.5 2015 (1) Excludes 862 single-family properties held for sale as of December 31, 2023.
Biggest changeYear Purchased or Delivered Atlanta, GA 6,027 10.0 % $ 1,419.8 10.2 % $ 235,586 2,196 17.3 2017 Charlotte, NC 4,258 7.0 % 978.7 7.0 % 229,833 2,119 18.3 2016 Dallas-Fort Worth, TX 3,870 6.4 % 689.9 5.0 % 178,281 2,086 20.5 2014 Phoenix, AZ 3,311 5.5 % 731.5 5.3 % 220,968 1,848 19.6 2016 Nashville, TN 3,370 5.6 % 863.2 6.2 % 256,144 2,122 16.4 2016 Jacksonville, FL 3,297 5.4 % 751.9 5.4 % 228,092 1,925 14.4 2016 Tampa, FL 2,964 4.9 % 720.8 5.2 % 243,244 1,949 15.1 2016 Indianapolis, IN 3,054 5.0 % 555.8 4.0 % 181,981 1,937 21.6 2015 Houston, TX 2,421 4.0 % 442.2 3.2 % 182,667 2,068 19.0 2015 Las Vegas, NV 2,550 4.2 % 784.2 5.6 % 307,535 1,960 10.9 2018 Raleigh, NC 2,223 3.7 % 453.1 3.3 % 203,831 1,893 18.3 2015 Columbus, OH 2,181 3.6 % 441.6 3.2 % 202,517 1,890 21.5 2015 Cincinnati, OH 2,107 3.5 % 421.0 3.0 % 199,826 1,843 21.9 2014 Orlando, FL 2,126 3.5 % 505.8 3.6 % 237,928 1,928 17.0 2016 Salt Lake City, UT 1,937 3.2 % 596.4 4.3 % 307,912 2,244 17.8 2016 Charleston, SC 1,616 2.7 % 388.0 2.8 % 240,168 1,964 13.2 2017 Greater Chicago area, IL and IN 1,523 2.5 % 295.3 2.1 % 193,875 1,868 23.3 2013 San Antonio, TX 1,222 2.0 % 246.9 1.8 % 202,129 1,914 15.8 2016 Savannah/Hilton Head, SC 1,056 1.7 % 228.1 1.6 % 216,039 1,886 16.1 2017 Seattle, WA 1,014 1.7 % 344.6 2.5 % 339,864 2,010 14.4 2017 All Other (2) 8,404 13.9 % 2,070.7 14.7 % 246,395 1,922 17.3 2016 Total/Average 60,531 100.0 % $ 13,929.5 100.0 % $ 230,121 1,996 17.7 2016 (1) Excludes 805 single-family properties held for sale as of December 31, 2024.
(2) Represents 15 markets in 13 states. For details on material encumbrances on our properties, see “Schedule III—Real Estate and Accumulated Depreciation” included in Part IV, “Item 15. Exhibit and Financial Statement Schedules” of this Annual Report on Form 10-K. Property and Management We own commercial real estate in Las Vegas, Nevada, which serves as our principal executive offices.
(2) Represents 17 markets in 16 states. For details on material encumbrances on our properties, see “Schedule III—Real Estate and Accumulated Depreciation” included in Part IV, “Item 15. Exhibit and Financial Statement Schedules” of this Annual Report on Form 10-K. Property and Management We own commercial real estate in Las Vegas, Nevada, which serves as our principal executive offices.
ITEM 2. PROPERTIES The following table summarizes certain key single-family properties metrics as of December 31, 2023: Market Number of Single-Family Properties (1) % of Total Single-Family Properties Gross Book Value (millions) % of Gross Book Value Total Avg. Gross Book Value per Property Avg. Sq. Ft. Avg. Property Age (years) Avg.
ITEM 2. PROPERTIES The following table summarizes certain key single-family properties metrics as of December 31, 2024: Market Number of Single-Family Properties (1) % of Total Single-Family Properties Gross Book Value (millions) % of Gross Book Value Total Avg. Gross Book Value per Property Avg. Sq. Ft. Avg. Property Age (years) Avg.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+1 added−1 removed9 unchanged
Biggest changeThe following table displays the estimated income tax treatment of our quarterly distributions on our Class A and Class B common shares and Series F, Series G and Series H perpetual preferred shares for the years ended December 31, 2023 and 2022: 2023 2022 Classification 3/31/2023 6/30/2023 9/29/2023 12/29/2023 3/31/2022 6/30/2022 (5) 9/30/2022 12/30/2022 Ordinary Dividend Income (1) 76.3 % 25.4 % 25.4 % 25.4 % 52.6 % 52.6 % 52.6 % 52.6 % Capital Gain Distributions (2)(3)(4) 23.7 % 74.6 % 74.6 % 74.6 % 47.4 % 47.4 % 47.4 % 47.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % (1) 100.0% of the ordinary dividend income is treated as Internal Revenue Code (“IRC”) Section 199A qualified REIT dividend income.
Biggest changeThe following table displays the estimated income tax treatment of our quarterly distributions on our Class A and Class B common shares and Series G and Series H perpetual preferred shares for the years ended December 31, 2024 and 2023: 2024 2023 Classification 3/28/2024 6/28/2024 9/30/2024 12/31/2024 3/31/2023 6/30/2023 9/29/2023 12/29/2023 Ordinary Dividend Income (1) 56.4 % 56.4 % 56.4 % 56.4 % 76.3 % 25.4 % 25.4 % 25.4 % Capital Gain Distributions (2)(3)(4) 43.6 % 43.6 % 43.6 % 43.6 % 23.7 % 74.6 % 74.6 % 74.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % (1) 100.0% of the ordinary dividend income is treated as Internal Revenue Code (“IRC”) Section 199A qualified REIT dividend income.
The graph assumes the investment of $100 in our Class A common shares and each of the indices on December 31, 2018, and the reinvestment of all dividends. The return shown on the graph is not necessarily indicative of future performance. Comparison of Cumulative Total Return Among AMH, the S&P 500 Index and the MSCI U.S.
The graph assumes the investment of $100 in our Class A common shares and each of the indices on December 31, 2019, and the reinvestment of all dividends. The return shown on the graph is not necessarily indicative of future performance. Comparison of Cumulative Total Return Among AMH, the S&P 500 Index and the MSCI U.S.
IRC Section 1061 is generally applicable to direct and indirect holders of “applicable partnership interests.” The “One Year Amounts” and “Three Year Amounts” required to be disclosed are both zero with respect to the 2023 and 2022 distributions, since all capital gain distributions relate to IRC Section 1231 gains.
IRC Section 1061 is generally applicable to direct and indirect holders of “applicable partnership interests.” The “One Year Amounts” and “Three Year Amounts” required to be disclosed are both zero with respect to the 2024 and 2023 distributions, since all capital gain distributions relate to IRC Section 1231 gains.
Shareholders / Unitholders As of the close of business on February 21, 2024, there were 26 holders of record of the Company’s Class A common shares (excludes beneficial owners whose shares are held in street name by brokers and other nominees), one shareholder of record of the Company’s Class B common shares and 11 holders of record of the Operating Partnership’s Class A units (including AMH’s general partnership interest).
Shareholders / Unitholders As of the close of business on February 19, 2025, there were 26 holders of record of the Company’s Class A common shares (excludes beneficial owners whose shares are held in street name by brokers and other nominees), one shareholder of record of the Company’s Class B common shares and 11 holders of record of the Operating Partnership’s Class A units (including AMH’s general partnership interest).
The following graph compares the cumulative total return on our Class A common shares from December 31, 2018 to the NYSE closing price per share on December 31, 2023, with the cumulative total returns on the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500”) and the MSCI U.S. REIT Index.
The following graph compares the cumulative total return on our Class A common shares from December 31, 2019 to the NYSE closing price per share on December 31, 2024, with the cumulative total returns on the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500”) and the MSCI U.S. REIT Index.
Distributions The Company’s board of trustees declared total distributions of $0.88 and $0.72 per Class A and Class B common share during the years ended December 31, 2023 and 2022, respectively. The Operating Partnership funds the payment of distributions, and an equivalent amount of distributions were declared on the corresponding Operating Partnership units.
Distributions The Company’s board of trustees declared total distributions of $1.04 and $0.88 per Class A and Class B common share during the years ended December 31, 2024 and 2023, respectively. The Operating Partnership funds the payment of distributions, and an equivalent amount of distributions were declared on the corresponding Operating Partnership units.
On February 21, 2024, the last reported sales price per share of our Class A common shares was $34.73. The Company’s Class B common shares and the Operating Partnership’s Class A units are not publicly traded.
On February 19, 2025, the last reported sales price per share of our Class A common shares was $35.31. The Company’s Class B common shares and the Operating Partnership’s Class A units are not publicly traded.
(5) The 5.875% Series F perpetual preferred shares were redeemed on May 5, 2022. 24 Stock Performance Graph This performance graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section, and shall not be incorporated by reference into any filing by us under the Securities Act except as expressly set forth in such filing.
(4) 100.0% of the capital gain distributions represent gain from dispositions of U.S. real property interests pursuant to IRC Section 897 for foreign shareholders. 24 Stock Performance Graph This performance graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section, and shall not be incorporated by reference into any filing by us under the Securities Act except as expressly set forth in such filing.
Shareholders should consult with their tax advisors to determine whether IRC Section 1061 applies to their capital gain distributions. (4) 100.0% of the capital gain distributions represent gain from dispositions of U.S. real property interests pursuant to IRC Section 897 for foreign shareholders.
Shareholders should consult with their tax advisors to determine whether IRC Section 1061 applies to their capital gain distributions.
REIT Index The following table provides the same information in tabular form: 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 AMH $ 100.00 $ 133.12 $ 153.46 $ 225.44 $ 159.07 $ 194.71 S&P 500 $ 100.00 $ 131.47 $ 155.65 $ 200.28 $ 163.98 $ 207.04 MSCI U.S.
REIT Index The following table provides the same information in tabular form: 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 AMH $ 100.00 $ 115.28 $ 169.35 $ 119.49 $ 146.26 $ 156.47 S&P 500 $ 100.00 $ 118.39 $ 152.34 $ 124.73 $ 157.48 $ 196.85 MSCI U.S.
Removed
REIT $ 100.00 $ 125.89 $ 116.43 $ 166.59 $ 125.76 $ 143.04 ITEM 6. [RESERVED] 25
Added
REIT $ 100.00 $ 92.43 $ 132.23 $ 99.82 $ 113.53 $ 123.47 ITEM 6. [RESERVED] 25

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

88 edited+25 added−17 removed71 unchanged
Biggest changeYear Purchased or Delivered Atlanta, GA 5,853 10.0 % $ 1,311.0 10.2 % $ 223,985 2,174 17.3 2016 Dallas-Fort Worth, TX 4,055 6.9 % 711.5 5.5 % 175,469 2,095 19.5 2014 Charlotte, NC 4,089 7.0 % 899.9 7.0 % 220,086 2,110 17.7 2015 Phoenix, AZ 3,364 5.8 % 718.5 5.6 % 213,588 1,841 19.2 2016 Nashville, TN 3,319 5.7 % 823.0 6.4 % 247,960 2,117 16.1 2016 Jacksonville, FL 3,101 5.3 % 676.1 5.2 % 218,020 1,928 14.4 2016 Indianapolis, IN 2,848 4.9 % 495.1 3.8 % 173,841 1,927 20.9 2014 Tampa, FL 2,901 5.0 % 673.6 5.2 % 232,187 1,948 15.2 2016 Houston, TX 2,402 4.1 % 427.5 3.3 % 177,995 2,082 18.1 2014 Raleigh, NC 2,179 3.7 % 434.3 3.4 % 199,320 1,889 17.7 2015 Cincinnati, OH 2,127 3.6 % 418.9 3.3 % 196,952 1,842 21.0 2014 Columbus, OH 2,154 3.7 % 421.5 3.3 % 195,675 1,880 21.0 2015 Las Vegas, NV 2,169 3.7 % 618.8 4.8 % 285,270 1,937 11.7 2017 Salt Lake City, UT 1,901 3.3 % 579.1 4.5 % 304,605 2,245 17.2 2016 Orlando, FL 1,999 3.4 % 437.6 3.4 % 218,923 1,911 18.3 2016 Greater Chicago area, IL and IN 1,541 2.6 % 294.5 2.3 % 191,105 1,865 22.3 2013 Charleston, SC 1,535 2.6 % 352.2 2.7 % 229,471 1,962 13.0 2017 San Antonio, TX 1,263 2.2 % 249.2 1.9 % 197,277 1,919 14.9 2015 Seattle, WA 1,161 2.0 % 383.8 3.0 % 330,534 2,006 13.6 2017 Savannah/Hilton Head, SC 1,051 1.8 % 222.0 1.7 % 211,204 1,887 15.2 2016 All Other (2) 7,458 12.7 % 1,737.6 13.5 % 232,983 1,912 17.8 2015 Total/Average 58,470 100.0 % $ 12,885.7 100.0 % $ 220,381 1,992 17.5 2015 (1) Excludes 862 single-family properties held for sale as of December 31, 2023.
Biggest changeYear Purchased or Delivered Atlanta, GA 6,027 10.0 % $ 1,419.8 10.2 % $ 235,586 2,196 17.3 2017 Charlotte, NC 4,258 7.0 % 978.7 7.0 % 229,833 2,119 18.3 2016 Dallas-Fort Worth, TX 3,870 6.4 % 689.9 5.0 % 178,281 2,086 20.5 2014 Phoenix, AZ 3,311 5.5 % 731.5 5.3 % 220,968 1,848 19.6 2016 Nashville, TN 3,370 5.6 % 863.2 6.2 % 256,144 2,122 16.4 2016 Jacksonville, FL 3,297 5.4 % 751.9 5.4 % 228,092 1,925 14.4 2016 Tampa, FL 2,964 4.9 % 720.8 5.2 % 243,244 1,949 15.1 2016 Indianapolis, IN 3,054 5.0 % 555.8 4.0 % 181,981 1,937 21.6 2015 Houston, TX 2,421 4.0 % 442.2 3.2 % 182,667 2,068 19.0 2015 Las Vegas, NV 2,550 4.2 % 784.2 5.6 % 307,535 1,960 10.9 2018 Raleigh, NC 2,223 3.7 % 453.1 3.3 % 203,831 1,893 18.3 2015 Columbus, OH 2,181 3.6 % 441.6 3.2 % 202,517 1,890 21.5 2015 Cincinnati, OH 2,107 3.5 % 421.0 3.0 % 199,826 1,843 21.9 2014 Orlando, FL 2,126 3.5 % 505.8 3.6 % 237,928 1,928 17.0 2016 Salt Lake City, UT 1,937 3.2 % 596.4 4.3 % 307,912 2,244 17.8 2016 Charleston, SC 1,616 2.7 % 388.0 2.8 % 240,168 1,964 13.2 2017 Greater Chicago area, IL and IN 1,523 2.5 % 295.3 2.1 % 193,875 1,868 23.3 2013 San Antonio, TX 1,222 2.0 % 246.9 1.8 % 202,129 1,914 15.8 2016 Savannah/Hilton Head, SC 1,056 1.7 % 228.1 1.6 % 216,039 1,886 16.1 2017 Seattle, WA 1,014 1.7 % 344.6 2.5 % 339,864 2,010 14.4 2017 All Other (2) 8,404 13.9 % 2,070.7 14.7 % 246,395 1,922 17.3 2016 Total/Average 60,531 100.0 % $ 13,929.5 100.0 % $ 230,121 1,996 17.7 2016 (1) Excludes 805 single-family properties held for sale as of December 31, 2024.
In addition, we also continue to make corporate level investments to support certain initiatives which will impact expenses based on given investment programs during the year. Also included in general and administrative expense is noncash share-based compensation expense related to corporate administrative employees.
In addition, we continue to make corporate level investments to support certain initiatives which will impact expenses based on given investment programs during the year. Also included in general and administrative expense is noncash share-based compensation expense related to corporate administrative employees.
Core NOI also excludes (1) gain or loss on early extinguishment of debt, (2) hurricane-related charges, net, which result in material charges to our single-family property portfolio, (3) gains and losses from sales or impairments of single-family properties and other, (4) depreciation and amortization, (5) acquisition and other transaction costs incurred with business combinations and the acquisition or disposition of properties as well as nonrecurring items unrelated to ongoing operations, (6) noncash share-based compensation expense, (7) interest expense, (8) general and administrative expense, and (9) other income and expense, net.
Core NOI also excludes (1) hurricane-related charges, net, which result in material charges to our single-family property portfolio, (2) gain or loss on early extinguishment of debt, (3) gains and losses from sales or impairments of single-family properties and other, (4) depreciation and amortization, (5) acquisition and other transaction costs incurred with business combinations and the acquisition or disposition of properties as well as nonrecurring items unrelated to ongoing operations, (6) noncash share-based compensation expense, (7) interest expense, (8) general and administrative expense, and (9) other income and expense, net.
As a portion of our homes are recently developed, acquired and/or renovated, we estimate Recurring Capital Expenditures for our entire portfolio by multiplying (a) current period actual Recurring Capital Expenditures per Same-Home Property by (b) our total number of properties, excluding newly acquired non-stabilized properties and properties classified as held for sale.
As a portion of our homes are recently developed, acquired and/or renovated, we estimate Recurring Capital Expenditures for our entire portfolio by multiplying (a) current period actual Recurring Capital Expenditures per Same-Home Property by (b) our total number of properties, excluding newly acquired non-stabilized properties and properties classified as held for sale.
Typically, our incoming residents have household incomes ranging from $80,000 to $140,000 and primarily consist of families with approximately two adults and one or more children. 28 Our rents and other single-family property revenues are comprised of rental revenue from single-family properties, fees from our single-family property rentals and “tenant charge-backs,” which are primarily related to cost recoveries on utilities.
Typically, our incoming residents have household incomes ranging from $80,000 to $140,000 and primarily consist of families with approximately two adults and one or more children. Our rents and other single-family property revenues are comprised of rental revenue from single-family properties, fees from our single-family property rentals and “tenant charge-backs,” which are primarily related to cost recoveries on utilities.
Our rental rates and occupancy levels are affected by macroeconomic factors and local and property-level factors, including market conditions, seasonality and tenant defaults, and the amount of time it takes to turn properties when tenants vacate. Additionally, our ability to collect revenues and related operating results are impacted by the credit worthiness and quality of our tenants.
Our rental rates and occupancy levels are affected by macroeconomic factors and local and property-level factors, including market conditions, seasonality and tenant defaults, and the amount of time it takes to turn properties when tenants vacate. Additionally, our ability to collect revenues and related operating results are impacted by the credit worthiness and 28 quality of our tenants.
We also believe that Core FFO and Adjusted FFO attributable to common share and unit holders provide useful information to investors because they allow investors to compare our operating performance to prior reporting periods without the effect of certain items that, by nature, are not comparable from period to period.
We also believe that Core FFO and Adjusted FFO attributable to 39 common share and unit holders provide useful information to investors because they allow investors to compare our operating performance to prior reporting periods without the effect of certain items that, by nature, are not comparable from period to period.
Because cash flows on properties considered to be long-lived assets to be held and used are considered on an undiscounted basis to determine whether an asset has been impaired, our established strategy of holding properties 34 over the long term directly decreases the likelihood of recording an impairment loss.
Because cash flows on properties considered to be long-lived assets to be held and used are considered on an undiscounted basis to determine whether an asset has been impaired, our established strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss.
FFO, Core FFO and Adjusted FFO attributable to common share and unit holders are not a substitute for net income or net cash provided by operating activities, each as determined in accordance with GAAP, as a measure of our operating performance, liquidity 39 or ability to pay dividends.
FFO, Core FFO and Adjusted FFO attributable to common share and unit holders are not a substitute for net income or net cash provided by operating activities, each as determined in accordance with GAAP, as a measure of our operating performance, liquidity or ability to pay dividends.
As we continue to grow our portfolio with a portion of our homes still recently developed, acquired and/or renovated, we distinguish our portfolio of homes between Same-Home properties and Non-Same-Home and Other properties in evaluating our operating performance.
As we continue to grow our portfolio with a portion of our homes still recently developed, acquired and/or renovated, we distinguish our portfolio of homes between Same-Home properties and Non-Same-Home and Other properties in evaluating our operating 29 performance.
If the sum of the estimated undiscounted cash flows is less than the net carrying amount, we record an impairment loss for the difference between the estimated fair value of the individual property and the carrying amount of the property at that date.
If the sum of the estimated undiscounted cash flows is less than the net carrying amount, we record an impairment loss for the difference between the estimated fair value of the individual 34 property and the carrying amount of the property at that date.
Excluding the effects of casualty losses, no impairments on operating properties were recorded during the years ended December 31, 2023, 2022 and 2021. Recent Accounting Pronouncements See Note 2. Significant Accounting Policies to our consolidated financial statements included as a separate section in Part IV, “Item 15.
Excluding the effects of casualty losses, no impairments on operating properties were recorded during the years ended December 31, 2024, 2023 and 2022. Recent Accounting Pronouncements See Note 2. Significant Accounting Policies to our consolidated financial statements included as a separate section in Part IV, “Item 15.
This process, which we refer to as “turnover,” is impacted by numerous factors, including the condition of the home upon move-out of the previous tenant, and by local demand, our marketing techniques and the size of our available inventory at the time of the turnover. Typically, it takes approximately 20 to 50 days to complete the turnover process.
This process, which we refer to as “turnover,” is impacted by numerous factors, including the condition of the home upon move-out of the previous tenant, and by local demand, our marketing techniques and the size of our available inventory at the time of the turnover. Typically, it takes approximately 20 to 60 days to complete the turnover process.
This section of this Form 10-K generally discusses the years ended December 31, 2023 and 2022. A discussion of the year ended December 31, 2021 is available at Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2022.
This section of this Form 10-K generally discusses the years ended December 31, 2024 and 2023. A discussion of the year ended December 31, 2022 is available at Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023.
(3) For the year ended December 31, 2023, Average Monthly Realized Rent is calculated as the lease component of rents and other single-family property revenues (i.e., rents from single-family properties) divided by the product of (a) number of properties and (b) Average Occupied Days Percentage, divided by the number of months.
(3) For the year ended December 31, 2024, Average Monthly Realized Rent is calculated as the lease component of rents and other single-family property revenues (i.e., rents from single-family properties) divided by the product of (a) number of properties and (b) Average Occupied Days Percentage, divided by the number of months.
Our internal construction program is managed by our team of development professionals that oversee the full rental home construction process including all land development and work performed by subcontractors. We typically incur costs between $250,000 and $450,000 to acquire and develop land and build a rental home.
Our internal construction program is managed by our team of development professionals that oversee the full rental home construction process including all land development and work performed by subcontractors. We typically incur costs between $300,000 and $450,000 to acquire and develop land and build a rental home.
For our acquisition and development expenditures, we expect to supplement these sources through the issuance of equity securities, including under our 2023 At-the-Market Program described below, borrowings under our credit facility, issuances of unsecured senior notes and proceeds from sales of single-family properties. However, our real estate assets are illiquid in nature.
For our acquisition and development expenditures, we expect to supplement these sources through the issuance of equity securities, including under our 2023 At-the-Market Program described below, borrowings under our $1.25 billion credit facility, issuances of unsecured senior notes and proceeds from sales of single-family properties. However, our real estate assets are illiquid in nature.
Key Single-Family Property and Leasing Metrics The following table summarizes certain key single-family properties metrics as of December 31, 2023: Total Single-Family Properties (1) Market Number of Single-Family Properties % of Total Single-Family Properties Gross Book Value (millions) % of Gross Book Value Total Avg. Gross Book Value per Property Avg. Sq. Ft. Avg. Property Age (years) Avg.
Key Single-Family Property and Leasing Metrics The following table summarizes certain key single-family properties metrics as of December 31, 2024: Total Single-Family Properties (1) Market Number of Single-Family Properties % of Total Single-Family Properties Gross Book Value (millions) % of Gross Book Value Total Avg. Gross Book Value per Property Avg. Sq. Ft. Avg. Property Age (years) Avg.
(2) Represents estimated future interest payments on our debt instruments based on applicable interest rates as of December 31, 2023 and assumes the repayment of the AMH 2015-SFR1 and AMH 2015-SFR2 securitizations on their anticipated repayment dates in 2025.
(2) Represents estimated future interest payments on our debt instruments based on applicable interest rates as of December 31, 2024 and assumes the repayment of the AMH 2015-SFR1 and AMH 2015-SFR2 securitizations on their anticipated repayment dates in 2025.
(2) For the year ended December 31, 2023, Average Occupied Days Percentage represents the number of days a property is occupied in the period divided by the total number of days the property is owned during the same period after initially being placed in-service.
(2) For the year ended December 31, 2024, Average Occupied Days Percentage represents the number of days a property is occupied in the period divided by the total number of days the property is owned during the same period after initially being placed in-service.
As of December 31, 2023, we had a remaining repurchase authorization of up to $265.1 million of our outstanding Class A common shares and up to $250.0 million of our outstanding preferred shares under the program.
As of December 31, 2024, we had a remaining repurchase authorization of up to $265.1 million of our outstanding Class A common shares and up to $250.0 million of our outstanding preferred shares under the program.
During the years ended December 31, 2023 and 2022, we did not repurchase and retire any of our Class A common shares or preferred shares.
During the years ended December 31, 2024 and 2023, we did not repurchase and retire any of our Class A common shares or preferred shares.
A timely liquidation of assets might not be a viable source of short-term liquidity should a cash flow shortfall arise, and we may need to source liquidity from other financing alternatives including drawing on our revolving credit facility. Our liquidity and capital resources as of December 31, 2023 included cash and cash equivalents of $59.4 million.
A timely liquidation of assets might not be a viable source of short-term liquidity should a cash flow shortfall arise, and we may need to source liquidity from other financing alternatives, including drawing on our revolving credit facility. Our liquidity and capital resources as of December 31, 2024 included cash and cash equivalents of $199.4 million.
With respect to our contractually obligated expenditures, our cash requirements within the next twelve months include accounts payable and accrued expenses, interest payments on debt obligations, principal amortization on our asset-backed securitizations, the repayment of our AMH 2014-SFR2 and AMH 2014-SFR3 asset-backed securitizations, operating lease obligations and purchase commitments to acquire single-family properties and land for our AMH Development Program.
With respect to our contractually obligated expenditures, our cash requirements within the next twelve months include accounts payable and accrued expenses, interest payments on debt obligations, principal amortization on our asset-backed securitizations, operating lease obligations and purchase commitments to acquire single-family properties and land for our AMH Development Program.
Once land development requirements have been met, historically it has taken approximately four to six months to complete the rental home vertical construction process. However, delivery of homes may be staggered to facilitate leasing absorption.
Once land development requirements have been met, historically it has taken approximately five to seven months to complete the rental home vertical construction process. However, delivery of homes may be staggered to facilitate leasing absorption.
Also, as of December 31, 2023, the Company had an additional 2,978 properties held in unconsolidated joint ventures, compared to 2,540 properties held in unconsolidated joint ventures as of December 31, 2022. Our portfolio of single-family properties, including those held in our unconsolidated joint ventures, is internally managed through our proprietary property management platform.
Also, as of December 31, 2024, the Company had an additional 3,376 properties held in unconsolidated joint ventures, compared to 2,978 properties held in unconsolidated joint ventures as of December 31, 2023. Our portfolio of single-family properties, including those held in our unconsolidated joint ventures, is internally managed through our proprietary property management platform.
Other Income and Expense, net Other income and expense, net for the years ended December 31, 2023 and 2022 was $9.8 million and $6.9 million, respectively, which primarily related to interest income, fees from unconsolidated joint ventures and equity in income (losses) from unconsolidated joint ventures, partially offset by expenses related to unconsolidated joint ventures and other nonrecurring expenses.
Other Income and Expense, net Other income and expense, net for the years ended December 31, 2024 and 2023 was $22.2 million and $9.8 million, respectively, which primarily related to interest income, fees from unconsolidated joint ventures and equity in income (losses) from unconsolidated joint ventures, partially offset by expenses related to unconsolidated joint ventures and other nonrecurring expenses.
Additionally, as of December 31, 2023, we had $90.0 million of outstanding borrowings and $2.7 million committed to outstanding letters of credit under our $1.25 billion revolving credit facility, leaving $1.16 billion of remaining borrowing capacity. Under our 2023 At-the-Market Program described below, we also had $898.0 million remaining available for future share issuances as of December 31, 2023.
Additionally, as of December 31, 2024, we had no outstanding borrowings and $2.0 million committed to outstanding letters of credit under our $1.25 billion revolving credit facility, leaving $1.25 billion of remaining borrowing capacity. Under our 2023 At-the-Market Program described below, we also had $753.7 million remaining available for future share issuances as of December 31, 2024.
(2) Represents 15 markets in 13 states. 26 The following table summarizes certain key leasing metrics as of December 31, 2023: Total Single-Family Properties (1) Market Avg. Occupied Days Percentage (2) Avg. Monthly Realized Rent per property (3) Avg. Original Lease Term (months) (4) Avg. Remaining Lease Term (months) (4) Avg.
(2) Represents 17 markets in 16 states. 26 The following table summarizes certain key leasing metrics as of December 31, 2024: Total Single-Family Properties (1) Market Avg. Occupied Days Percentage (2) Avg. Monthly Realized Rent per Property (3) Avg. Original Lease Term (months) (4) Avg. Remaining Lease Term (months) (4) Avg.
(2) Presented net of tenant charge-backs. (3) Presented net of tenant charge-backs and excludes noncash share-based compensation expense related to centralized and field property management employees. Rents and Other Single-Family Property Revenues Rents and other single-family property revenues increased 8.9% to $1.6 billion for the year ended December 31, 2023 from $1.5 billion for the year ended December 31, 2022.
(2) Presented net of tenant charge-backs. (3) Presented net of tenant charge-backs and excludes noncash share-based compensation expense related to centralized and field property management employees. Rents and Other Single-Family Property Revenues Rents and other single-family property revenues increased 6.5% to $1.73 billion for the year ended December 31, 2024 from $1.62 billion for the year ended December 31, 2023.
Gain on Sale and Impairment of Single-Family Properties and Other, net Gain on sale and impairment of single-family properties and other, net for the years ended December 31, 2023 and 2022 was $209.8 million and $136.5 million, respectively, which included $1.9 million and $2.5 million, respectively, of impairment charges related to homes classified as held for sale during each period.
Gain on Sale and Impairment of Single-Family Properties and Other, net Gain on sale and impairment of single-family properties and other, net for the years ended December 31, 2024 and 2023 was $225.8 million and $209.8 million, respectively, which included $9.2 million and $1.9 million, respectively, of impairment charges related to homes and land classified as held for sale during each period.
Our level of investment activity has fluctuated based on the number of suitable opportunities and the level of capital available to invest. Recently, we have strategically scaled back acquisitions through our National Builder Program and traditional acquisition channel as the housing market adjusts to the current macroeconomic environment.
Our level of investment activity has fluctuated based on the number of suitable opportunities and the level of capital available to invest. We have strategically scaled back acquisitions of single-family properties through our National Builder Program and traditional acquisition channels as the housing market adjusts to the current macroeconomic environment.
(5) Represents the percentage change in rent on all non-month-to-month lease renewals and re-leases during the year ended December 31, 2023, compared to the annual rent of the previously expired non-month-to-month comparable long-term lease for each property. (6) Represents 15 markets in 13 states.
(5) Represents the percentage change in rent on all non-month-to-month lease renewals and re-leases during the year ended December 31, 2024, compared to the annual rent of the previously expired non-month-to-month comparable long-term lease for each property. (6) Represents 17 markets in 16 states.
Our investing activities are most significantly impacted by the level of investment activity through traditional acquisition channels, the development of “built-for-rental” homes through our AMH Development Program and the acquisition of newly built properties through our National Builder Program.
Our investing activities are most significantly impacted by the level of investment activity through traditional acquisition channels, including the availability of bulk portfolio acquisition opportunities, the development of “built-for-rental” homes through our AMH Development Program and the acquisition of newly built properties through our National Builder Program.
Based on our Same-Home population of properties (defined below), the year-over-year increase in Average Monthly Realized Rent per property was 7.1% for the year ended December 31, 2023 and we experienced turnover rates, which represents the number of tenant move-outs during the period divided by the total number of properties, of 29.2% and 28.1% during the years ended December 31, 2023 and 2022, respectively.
Based on our Same-Home population of properties (defined below), the year-over-year increase in Average Monthly Realized Rent per property was 5.3% for the year ended December 31, 2024 and we experienced turnover rates, which represents the number of tenant move-outs during the period divided by the total number of properties, of 27.5% and 29.7% during the years ended December 31, 2024 and 2023, respectively.
Financing Activities Net cash used for financing activities was $42.2 million for the year ended December 31, 2023 compared to net cash provided by financing activities of $786.2 million during the year ended December 31, 2022.
Financing Activities Net cash provided by financing activities was $142.7 million for the year ended December 31, 2024 compared to net cash used for financing activities of $42.2 million during the year ended December 31, 2023.
We are also focused on developing “built-for-rental” homes through our internal AMH Development Program. In addition, we also acquire newly 27 constructed homes from third-party developers through our National Builder Program. Opportunities from these new construction channels are impacted by the availability of vacant developed lots, development land assets and inventory of homes currently under construction or newly developed.
In addition, we acquire newly constructed homes from third-party developers through our National Builder 27 Program. Opportunities from these new construction channels are impacted by the availability of vacant developed lots, development land assets and inventory of homes currently under construction or newly developed.
During the years ended December 31, 2023 and 2022, the Company distributed an aggregate $378.5 million and $306.4 million, respectively, to common shareholders, preferred shareholders and noncontrolling interests on a cash basis.
During the years ended December 31, 2024 and 2023, the Company distributed an aggregate $450.8 million and $378.5 million, respectively, to common shareholders, preferred shareholders and noncontrolling interests on a cash basis.
Actual results could ultimately differ from these estimates. Listed below are those policies that management believes involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or our results of operations.
Listed below are those policies that management believes involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or our results of operations.
During the year ended December 31, 2023, we also developed an additional 479 newly constructed homes which were delivered to our unconsolidated joint ventures, aggregating to 2,317 total program deliveries through our AMH Development Program. Our properties held for sale were identified based on submarket analysis, as well as individual property-level operational review.
During the year ended December 31, 2024, we also developed an additional 356 newly constructed homes which were delivered to our unconsolidated joint ventures, aggregating to 2,356 total home deliveries through our AMH Development Program. Our properties and land held for sale were identified based on individual asset-level review, as well as submarket analysis.
General and administrative expense for the years ended December 31, 2023 and 2022 was $74.6 million and $68.1 million, respectively, which included $16.4 million and $15.3 million, respectively, of noncash share-based compensation expense in each period related to corporate administrative employees.
General and administrative expense for the years ended December 31, 2024 and 2023 was $83.6 million and $74.6 million, respectively, which included $20.6 million and $16.4 million, respectively, of noncash share-based compensation expense in each period related to corporate administrative employees.
For the year ended December 31, 2023, the Company purchased 47 single-family properties treated as asset acquisitions for accounting purposes for a total purchase price of $12.8 million, net of holding costs, which was included in cash paid for single-family properties within the consolidated statement of cash flows.
For the year ended December 31, 2024, the Company purchased 1,724 single-family properties treated as asset acquisitions for accounting purposes for a total purchase price of $495.9 million, net of holding costs, which was included in cash paid for single-family properties within the consolidated statement of cash flows.
Future interest payments on debt obligations will also be impacted by the level of borrowing on our revolving credit facility in the future. (3) Represents commitments to acquire 29 single-family properties for an aggregate purchase price of $6.6 million and land relating to our AMH Development Program for an aggregate purchase price of $75.6 million.
Future interest payments on debt obligations will also be impacted by the level of borrowing on our revolving credit facility in the future. (3) Represents commitments to acquire one single-family property for a purchase price of $0.3 million and land relating to our AMH Development Program for an aggregate purchase price of $81.1 million.
Depreciation of our assets is calculated over their useful lives on a straight-line basis over three to 30 years. Our intangible assets are amortized on a straight-line basis over the asset’s estimated economic useful life.
Depreciation and Amortization Depreciation and amortization expense consists primarily of depreciation of buildings and improvements. Depreciation of our assets is calculated over their useful lives on a straight-line basis over three to 30 years. Our intangible assets are amortized on a straight-line basis over the asset’s estimated economic useful life.
As of December 31, 2023, 55,768 of our total properties (excluding properties held for sale) were occupied, compared to 55,605 of our total properties (excluding properties held for sale) as of December 31, 2022.
As of December 31, 2024, 57,486 of our total properties (excluding properties held for sale) were occupied, compared to 55,768 of our total properties (excluding properties held for sale) as of December 31, 2023.
As of December 31, 2023 and 2022, there were 862 and 1,115 properties, respectively, classified as held for sale. We will continue to evaluate our properties for potential disposition going forward as a normal course of business.
As of December 31, 2024 and 2023, there were 805 and 862 properties, respectively, as well as certain land lots, classified as held for sale. We will continue to evaluate our properties and land for potential disposition going forward as a normal course of business.
Subsequent Events to our consolidated financial statements included as a separate section in Part IV, “Item 15.
Significant Accounting Policies to our consolidated financial statements included as a separate section in Part IV, “Item 15.
As of December 31, 2023, we owned 59,332 single-family properties in select submarkets of metropolitan statistical areas (“MSAs”) in 21 states, including 862 properties held for sale, compared to 58,993 single-family properties in 21 states, including 1,115 properties held for sale, as of December 31, 2022.
As of December 31, 2024, we owned 61,336 single-family properties in select submarkets of metropolitan statistical areas (“MSAs”) in 24 states, including 805 properties held for sale, compared to 59,332 single-family properties in 21 states, including 862 properties held for sale, as of December 31, 2023.
A property is classified as stabilized once it has been renovated by the Company or newly constructed and then initially leased or available for rent for a period greater than 90 days. 29 Properties acquired through a bulk purchase are first considered non-stabilized, as an entire group, until (1) we have owned them for an adequate period of time to allow for complete on-boarding to our operating platform, and (2) a substantial portion of the properties have experienced tenant turnover at least once under our ownership, providing the opportunity for renovations and improvements to meet our property standards.
Properties acquired through a bulk purchase are first considered non-stabilized, as an entire group, until (1) we have owned them for an adequate period of time to allow for complete on-boarding to our operating platform, and (2) a substantial portion of the properties have experienced tenant turnover at least once under our ownership, providing the opportunity for renovations and improvements to meet our property standards.
Acquisition and other transaction costs for the years ended December 31, 2023 and 2022 were $16.9 million and $23.5 million, respectively, which included $5.0 million and $8.1 million, respectively, of noncash share-based compensation expense in each period related to employees in these functions.
Acquisition and other transaction costs for the years ended December 31, 2024 and 2023 were $12.2 million and $16.9 million, respectively, which included $5.6 million and $5.0 million, respectively, of noncash share-based compensation expense in each period related to employees in these functions. The decrease in acquisition and other transaction costs was primarily due to a decrease in personnel costs.
If an impairment indicator exists, we compare the expected future undiscounted cash flows against the net carrying amount. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding anticipated hold periods, future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods.
The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding anticipated hold periods, future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods.
In making estimates of fair values for purposes of allocating the purchase price of individually acquired properties subject to an existing lease, the Company utilizes its own market knowledge obtained from historical transactions, its AMH Development Program and published market data.
In making estimates of fair values for purposes of allocating the total purchase price to individual homes in a portfolio acquisition and allocating the individual purchase price of a home to the acquired components, the Company utilizes its own market knowledge obtained from historical transactions, its AMH Development Program and published market data.
We believe these metrics provide useful information to investors because they exclude the impact of various income and expense items that are not indicative of operating performance. 40 The following is a reconciliation of net income, as determined in accordance with GAAP, to EBITDA, EBITDAre, Adjusted EBITDAre and Fully Adjusted EBITDAre for the years ended December 31, 2023 and 2022 (amounts in thousands): For the Years Ended December 31, 2023 2022 Net income $ 432,142 $ 310,025 Interest expense 140,198 134,871 Depreciation and amortization 456,550 426,531 EBITDA $ 1,028,890 $ 871,427 Gain on sale and impairment of single-family properties and other, net (209,834) (136,459) Adjustments for unconsolidated joint ventures 3,711 344 EBITDAre $ 822,767 $ 735,312 Noncash share-based compensation - general and administrative 16,379 15,318 Noncash share-based compensation - property management 4,030 3,861 Acquisition, other transaction costs and other 16,910 23,452 Hurricane-related charges, net — 6,133 Adjusted EBITDAre $ 860,086 $ 784,076 Recurring Capital Expenditures (76,098) (65,636) Leasing costs (3,113) (2,586) Fully Adjusted EBITDAre $ 780,875 $ 715,854 41
We believe these metrics provide useful information to investors because they exclude the impact of various income and expense items that are not indicative of operating performance. 40 The following is a reconciliation of net income, as determined in accordance with GAAP, to EBITDA, EBITDAre, Adjusted EBITDAre and Fully Adjusted EBITDAre for the years ended December 31, 2024 and 2023 (amounts in thousands): For the Years Ended December 31, 2024 2023 Net income $ 468,142 $ 432,142 Interest expense 165,351 140,198 Depreciation and amortization 477,010 456,550 EBITDA $ 1,110,503 $ 1,028,890 Gain on sale and impairment of single-family properties and other, net (225,756) (209,834) Adjustments for unconsolidated joint ventures 4,722 3,711 EBITDAre $ 889,469 $ 822,767 Noncash share-based compensation - general and administrative 20,617 16,379 Noncash share-based compensation - property management 4,814 4,030 Acquisition, other transaction costs and other 12,192 16,910 Hurricane-related charges, net 8,884 — Loss on early extinguishment of debt 6,323 — Adjusted EBITDAre $ 942,299 $ 860,086 Recurring Capital Expenditures (76,281) (76,098) Leasing costs (3,966) (3,113) Fully Adjusted EBITDAre $ 862,052 $ 780,875 41
The Company’s revolving credit facility has a maximum borrowing capacity of $1.25 billion and matures in 2025 with two six-month extension 37 options at the Company’s election if certain conditions are met. As of December 31, 2023, the Company had $90.0 million of outstanding borrowings under its revolving credit facility.
The Company’s revolving credit facility has a maximum borrowing capacity of $1.25 billion and matures in 2028 with two six-month extension options at the Company’s election if certain conditions are met.
The following is a reconciliation of the Company’s net income attributable to common shareholders, determined in accordance with GAAP, to FFO attributable to common share and unit holders, Core FFO attributable to common share and unit holders and Adjusted FFO attributable to common share and unit holders for the years ended December 31, 2023 and 2022 (amounts in thousands): For the Years Ended December 31, 2023 2022 Net income attributable to common shareholders $ 366,224 $ 250,781 Adjustments: Noncontrolling interests in the Operating Partnership 51,974 36,887 Gain on sale and impairment of single-family properties and other, net (209,834) (136,459) Adjustments for unconsolidated joint ventures 3,711 344 Depreciation and amortization 456,550 426,531 Less: depreciation and amortization of non-real estate assets (17,417) (13,358) FFO attributable to common share and unit holders (1) $ 651,208 $ 564,726 Adjustments: Acquisition, other transaction costs and other 16,910 23,452 Noncash share-based compensation - general and administrative 16,379 15,318 Noncash share-based compensation - property management 4,030 3,861 Hurricane-related charges, net — 6,133 Redemption of perpetual preferred shares — 5,276 Core FFO attributable to common share and unit holders (1) $ 688,527 $ 618,766 Recurring Capital Expenditures (76,098) (65,636) Leasing costs (3,113) (2,586) Adjusted FFO attributable to common share and unit holders (1) $ 609,316 $ 550,544 (1) Unit holders include former AH LLC members and other non-affiliates that own Class A units in the Operating Partnership and their OP units are reflected as noncontrolling interests in the Company’s consolidated financial statements.
The following is a reconciliation of the Company’s net income attributable to common shareholders, determined in accordance with GAAP, to FFO attributable to common share and unit holders, Core FFO attributable to common share and unit holders and Adjusted FFO attributable to common share and unit holders for the years ended December 31, 2024 and 2023 (amounts in thousands): For the Years Ended December 31, 2024 2023 Net income attributable to common shareholders $ 398,482 $ 366,224 Adjustments: Noncontrolling interests in the Operating Partnership 55,716 51,974 Gain on sale and impairment of single-family properties and other, net (225,756) (209,834) Adjustments for unconsolidated joint ventures 4,722 3,711 Depreciation and amortization 477,010 456,550 Less: depreciation and amortization of non-real estate assets (19,447) (17,417) FFO attributable to common share and unit holders (1) $ 690,727 $ 651,208 Adjustments: Acquisition, other transaction costs and other 12,192 16,910 Noncash share-based compensation - general and administrative 20,617 16,379 Noncash share-based compensation - property management 4,814 4,030 Hurricane-related charges, net 8,884 — Loss on early extinguishment of debt 6,323 — Core FFO attributable to common share and unit holders (1) $ 743,557 $ 688,527 Recurring Capital Expenditures (76,281) (76,098) Leasing costs (3,966) (3,113) Adjusted FFO attributable to common share and unit holders (1) $ 663,310 $ 609,316 (1) Unit holders include former AH LLC members and other non-affiliates that own Class A units in the Operating Partnership and their OP units are reflected as noncontrolling interests in the Company’s consolidated financial statements.
Cash Flows The following table summarizes the Company’s and the Operating Partnership’s cash flows for the years ended December 31, 2023 and 2022 (amounts in thousands): For the Years Ended December 31, 2023 2022 Change Net cash provided by operating activities $ 738,689 $ 665,518 $ 73,171 Net cash used for investing activities (692,578) (1,425,502) 732,924 Net cash (used for) provided by financing activities (42,210) 786,177 (828,387) Net increase in cash, cash equivalents and restricted cash $ 3,901 $ 26,193 $ (22,292) Operating Activities Our cash flows provided by operating activities, which is our principal source of cash flows, depend on numerous factors, including the occupancy level of our properties, the rental rates achieved on our leases, the collection of rent from our tenants and the level of property operating expenses, property management expenses and general and administrative expenses.
Cash Flows The following table summarizes the Company’s and the Operating Partnership’s cash flows for the years ended December 31, 2024 and 2023 (amounts in thousands): For the Years Ended December 31, 2024 2023 Change Net cash provided by operating activities $ 811,535 $ 738,689 $ 72,846 Net cash used for investing activities (825,876) (692,578) (133,298) Net cash provided by (used for) financing activities 142,696 (42,210) 184,906 Net increase in cash, cash equivalents and restricted cash $ 128,355 $ 3,901 $ 124,454 Operating Activities Our cash flows provided by operating activities, which is our principal source of cash flows, depend on numerous factors, including the occupancy level of our properties, the rental rates achieved on our leases, the collection of rent from our tenants and the level of property operating expenses, property management expenses, general and administrative expense and interest expense.
Exhibit and Financial Statement Schedules” of this Annual Report on Form 10-K for further information on share issuances under the 2023 At-the-Market Program in January 2024. 38 Share Repurchase Program The Company’s board of trustees authorized the establishment of our share repurchase program for the repurchase of up to $300.0 million of our outstanding Class A common shares and up to $250.0 million of our outstanding preferred shares from time to time in the open market or in privately negotiated transactions.
Share Repurchase Program The Company’s board of trustees authorized the establishment of our share repurchase program for the repurchase of up to $300.0 million of our outstanding Class A common shares and up to $250.0 million of our outstanding preferred shares from time to time in the open market or in privately negotiated transactions.
This increase was primarily attributable to higher Average Monthly Realized Rent per property, which increased 7.1% to $2,065 per month for the year ended December 31, 2023 compared to $1,929 per month for the year ended December 31, 2022, partially offset by a decrease in Average Occupied Days Percentage, which was 96.8% for the year ended December 31, 2023 compared to 97.2% for the year ended December 31, 2022.
This increase was primarily attributable to higher Average Monthly Realized Rent per property, which increased 5.3% to $2,189 per month for the year ended December 31, 2024 compared to $2,078 per month for the year ended December 31, 2023, as well as higher fees from single-family properties and lower uncollectible rents, partially offset by a decrease in Average Occupied Days Percentage, which was 96.2% for the year ended December 31, 2024 compared to 96.7% for the year ended December 31, 2023.
Depreciation and amortization expense increased 7.0% to $456.6 million for the year ended December 31, 2023 from $426.5 million for the year ended December 31, 2022 primarily due to growth in the average number and cost of depreciable properties as well as ongoing capital investments into existing properties. 33 Hurricane-Related Charges, net Hurricane Ian impacted certain properties primarily located in Florida, South Carolina and North Carolina, resulting in $6.1 million of hurricane-related charges, net during the year ended December 31, 2022.
Depreciation and amortization expense increased 4.5% to $477.0 million for the year ended December 31, 2024 from $456.6 million for the year ended December 31, 2023 primarily due to growth in the average number and cost of depreciable properties as well as ongoing capital investments into existing properties.
This increase was primarily attributable to increased property tax expense as well as inflationary increases in R&M and turnover costs. 32 Property Management Expenses Property management expenses for the years ended December 31, 2023 and 2022 were $123.4 million and $112.7 million, respectively, which included $4.0 million and $3.9 million, respectively, of noncash share-based compensation expense in each period related to centralized and field property management employees.
Property Management Expenses Property management expenses for the years ended December 31, 2024 and 2023 were $129.3 million and $123.4 million, respectively, which included $4.8 million and $4.0 million, respectively, of noncash share-based compensation expense in each period 32 related to centralized and field property management employees.
Blended Change in Rent (5) Atlanta, GA 94.8 % $ 2,153 12.0 6.8 5.8 % Dallas-Fort Worth, TX 95.1 % 2,203 12.1 6.0 6.1 % Charlotte, NC 95.3 % 2,077 12.0 6.1 6.1 % Phoenix, AZ 94.2 % 2,047 12.0 5.7 5.7 % Nashville, TN 95.6 % 2,248 12.0 6.1 5.3 % Jacksonville, FL 93.3 % 2,081 12.0 6.2 5.0 % Indianapolis, IN 96.6 % 1,797 12.1 6.1 5.3 % Tampa, FL 93.7 % 2,313 12.0 6.6 6.1 % Houston, TX 96.9 % 1,981 12.0 6.3 5.5 % Raleigh, NC 96.3 % 1,951 12.0 5.8 5.1 % Cincinnati, OH 96.4 % 2,042 12.0 6.3 5.5 % Columbus, OH 95.7 % 2,084 12.0 6.1 5.5 % Las Vegas, NV 91.9 % 2,194 12.0 6.3 3.9 % Salt Lake City, UT 96.4 % 2,365 12.0 5.9 3.7 % Orlando, FL 93.8 % 2,258 12.0 6.2 6.6 % Greater Chicago area, IL and IN 96.6 % 2,327 12.0 6.5 5.4 % Charleston, SC 95.9 % 2,207 12.0 6.3 5.0 % San Antonio, TX 94.3 % 1,915 12.0 5.6 3.3 % Seattle, WA 95.4 % 2,653 11.7 5.6 7.0 % Savannah/Hilton Head, SC 97.0 % 2,108 12.0 6.4 7.8 % All Other (6) 94.5 % 2,108 12.0 6.1 5.3 % Total/Average 95.0 % $ 2,132 12.0 6.2 5.5 % (1) Excludes 862 single-family properties held for sale as of December 31, 2023.
Blended Change in Rent (5) Atlanta, GA 94.4 % $ 2,279 12.8 6.3 2.8 % Charlotte, NC 95.8 % 2,201 12.8 6.0 3.5 % Dallas-Fort Worth, TX 95.4 % 2,299 12.3 6.1 1.8 % Phoenix, AZ 94.7 % 2,136 12.0 5.6 0.6 % Nashville, TN 94.8 % 2,370 12.3 6.2 3.4 % Jacksonville, FL 93.3 % 2,184 12.3 6.0 2.3 % Tampa, FL 92.9 % 2,428 12.3 6.4 3.4 % Indianapolis, IN 96.3 % 1,887 12.9 6.3 4.6 % Houston, TX 95.4 % 2,063 13.0 6.1 3.0 % Las Vegas, NV 90.2 % 2,321 12.3 6.4 5.6 % Raleigh, NC 95.9 % 2,055 12.4 6.4 2.4 % Columbus, OH 94.7 % 2,208 12.4 6.4 5.3 % Cincinnati, OH 95.4 % 2,154 12.4 6.8 5.4 % Orlando, FL 91.5 % 2,395 12.2 6.4 2.9 % Salt Lake City, UT 93.9 % 2,456 12.2 6.1 4.3 % Charleston, SC 92.3 % 2,302 12.2 6.5 4.6 % Greater Chicago area, IL and IN 96.4 % 2,480 12.4 6.6 7.2 % San Antonio, TX 94.3 % 1,947 12.3 5.7 (0.2) % Savannah/Hilton Head, SC 94.3 % 2,270 12.3 6.5 5.9 % Seattle, WA 94.2 % 2,840 11.6 5.9 4.6 % All Other (6) 93.0 % 2,206 12.2 6.2 3.2 % Total/Average 94.2 % $ 2,239 12.4 6.2 3.4 % (1) Excludes 805 single-family properties held for sale as of December 31, 2024.
During the fourth quarter of 2023, the Company issued 2,799,683 Class A common shares under its 2023 At-the-Market Program, raising $102.0 million in gross proceeds before commissions and other expenses of approximately $1.7 million. As of December 31, 2023, 2,799,683 shares have been issued under the 2023 At-the-Market Program and $898.0 million remained available for future issuances. See Note 15.
During the years ended December 31, 2024 and 2023, the Company directly issued 932,746 and 2,799,683 Class A common shares under its 2023 At-the-Market Program, respectively, raising $33.7 million and $102.0 million in gross proceeds before commissions and other expenses of approximately $0.5 million and $1.7 million, respectively.
The development of “built-for-rental” homes and our property-enhancing capital expenditures may reduce recurring and other capital expenditures on an average per-home basis in the future. We use cash generated from operating and financing activities and by recycling capital through the sale of single-family properties to invest in the strategic expansion of our single-family property portfolio.
We use cash generated from operating and financing activities and by recycling capital through the sale of single-family properties to invest in the strategic expansion of our single-family property portfolio.
Critical Accounting Estimates Our discussion and analysis of our historical financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.
The increase was primarily due to higher interest income. Critical Accounting Estimates Our discussion and analysis of our historical financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP.
Property Acquisitions, Development and Dispositions Since our formation, we have rapidly but systematically grown our portfolio of single-family properties. Our ability to identify and acquire homes that meet our investment criteria is impacted by home prices in our target markets, the inventory of properties available-for-sale through traditional acquisition channels, competition for our target assets and our available capital.
Our ability to identify and acquire homes that meet our investment criteria is impacted by home prices in our target markets, the inventory of properties available-for-sale through traditional acquisition channels, the availability of bulk portfolio acquisition opportunities, competition for our target assets and our available capital. We are also focused on developing “built-for-rental” homes through our internal AMH Development Program.
Impairment of Long-Lived Assets - Estimating Future Cash Flows We evaluate our long-lived assets for impairment periodically or whenever events or circumstances indicate that their carrying amount may not be recoverable. Significant indicators of impairment may include, but are not limited to, declines in home values, rental rates and occupancy percentages, as well as significant changes in the economy.
Impairment of Long-Lived Assets - Estimating Future Cash Flows We evaluate our long-lived assets for impairment periodically or whenever events or circumstances indicate that their carrying amount may not be recoverable.
During the year ended December 31, 2022, the Company recognized $8.9 million in gross charges primarily related to minor repair and remediation costs, partially offset by $2.8 million of related insurance claims.
During the year ended December 31, 2024, the Company recognized $12.8 million in gross charges primarily 33 related to actual and estimated accruals for minor repair and remediation costs, partially offset by an estimated $3.9 million of related insurance claims that the Company believes is probable it will recover, resulting in a net charge of $8.9 million.
This change was primarily due to the debt and equity activity described below as well as $60.2 million of proceeds from liabilities related to consolidated land not owned during the year ended December 31, 2022.
This change was primarily due to the debt and equity activity described below as well as $82.0 million in payments to a land banking entity related to liabilities to repurchase consolidated land not owned for our AMH Development Program during the year ended December 31, 2024. See Land Option Contracts in Note 2.
During the third quarter of 2022, the Company issued and physically settled 5,000,000 Class A common shares under the 2022 Forward Sale Agreements, receiving net proceeds of $185.6 million. During the first quarter of 2023, the Company issued and physically settled the remaining 8,000,000 Class A common shares under the 2022 Forward Sale Agreements, receiving net proceeds of $298.4 million.
During the first quarter of 2023, the Company issued and physically settled the remaining 8,000,000 Class A common shares under the 2022 Forward Sale Agreements, receiving net proceeds of $298.4 million. See Note 9. Shareholders’ Equity / Partners’ Capital to our consolidated financial statements included as a separate section in Part IV, “Item 15.
Core property operating expenses from Same-Home properties increased 9.1% to $420.1 million for the year ended December 31, 2023 from $385.0 million for the year ended December 31, 2022 primarily driven by increased property tax expense and inflationary increases in R&M and turnover costs, net and property management expenses, net.
Core property operating expenses from Same-Home properties increased 4.3% to $457.9 million for the year ended December 31, 2024 from $438.9 million for the year ended December 31, 2023 primarily driven by an annual increase in property tax expense.
The Company used these net proceeds to repay indebtedness under its revolving credit facility and for general corporate purposes. When the Company issues common shares, the Operating Partnership issues an equivalent number of units of partnership interest of a corresponding class to AMH, with the Operating Partnership receiving the net proceeds from the share issuances.
Exhibit and Financial Statement Schedules” of this Annual Report on Form 10-K. When the Company issues common shares, the Operating Partnership issues an equivalent number of units of partnership interest of a corresponding class to AMH, with the Operating Partnership receiving the net proceeds from the share issuances.
During the year ended December 31, 2023, the Company borrowed $200.0 million and paid down $240.0 million on its revolving credit facility, and the Company repaid $24.5 million on its asset-backed securitizations.
During the year ended December 31, 2023, the Company borrowed $200.0 million and paid down $240.0 million on its revolving credit facility, and the Company repaid $24.5 million on its asset-backed securitizations. For additional information regarding the Company’s debt issuances, see Note 7. Debt to our consolidated financial statements included as a separate section in Part IV, “Item 15.
The 2023 At-the-Market Program may be suspended or terminated by the Company at any time. During the year ended December 31, 2022, no shares were issued under its previous program.
The 2023 At-the-Market Program may be suspended or terminated by the Company at any time.
Debt As of December 31, 2023, the Company had outstanding asset-backed securitizations with varying maturities starting in 2024 with an aggregate principal amount of $1.9 billion, which includes $938.6 million maturing within the next twelve months, and outstanding unsecured senior notes with varying maturities starting in 2028 with an aggregate principal amount of $2.6 billion.
Exhibit and Financial Statement Schedules” of this Annual Report on Form 10-K. 37 Debt As of December 31, 2024, the Company had outstanding asset-backed securitizations maturing in 2045 with an aggregate principal amount of $925.4 million and outstanding unsecured senior notes with varying maturities starting in 2028 with an aggregate principal amount of $4.15 billion.
The increase in property management expenses was primarily attributable to general inflationary increases as well as investments made into our property management teams and platform. Core Revenues from Same-Home Properties Core revenues from Same-Home properties increased 6.5% to $1.2 billion for the year ended December 31, 2023 from $1.1 billion for the year ended December 31, 2022.
The increase in property management expenses was primarily attributable to an increase in personnel related expenses and noncash share-based compensation expense. Core Revenues from Same-Home Properties Core revenues from Same-Home properties increased 5.0% to $1.33 billion for the year ended December 31, 2024 from $1.27 billion for the year ended December 31, 2023.
Additionally, these metrics should not be used as substitutes for net income or loss or net cash flows from operating activities (as computed in accordance with accounting principles generally accepted in the United States of America (“GAAP”)). 30 Comparison of the Year Ended December 31, 2023 to the Year Ended December 31, 2022 The following are reconciliations of core revenues, Same-Home core revenues, core property operating expenses, Same-Home core property operating expenses, Core NOI and Same-Home Core NOI to their respective GAAP metrics for the years ended December 31, 2023 and 2022 (amounts in thousands): For the Years Ended December 31, 2023 2022 Core revenues and Same-Home core revenues Rents and other single-family property revenues $ 1,623,605 $ 1,490,534 Tenant charge-backs (215,555) (202,606) Core revenues 1,408,050 1,287,928 Less: Non-Same-Home core revenues (217,456) (170,017) Same-Home core revenues $ 1,190,594 $ 1,117,911 Core property operating expenses and Same-Home core property operating expenses Property operating expenses $ 599,459 $ 552,091 Property management expenses 123,363 112,698 Noncash share-based compensation - property management (4,030) (3,861) Expenses reimbursed by tenant charge-backs (215,555) (202,606) Core property operating expenses 503,237 458,322 Less: Non-Same-Home core property operating expenses (83,153) (73,306) Same-Home core property operating expenses $ 420,084 $ 385,016 Core NOI and Same-Home Core NOI Net income $ 432,142 $ 310,025 Hurricane-related charges, net — 6,133 Gain on sale and impairment of single-family properties and other, net (209,834) (136,459) Depreciation and amortization 456,550 426,531 Acquisition and other transaction costs 16,910 23,452 Noncash share-based compensation - property management 4,030 3,861 Interest expense 140,198 134,871 General and administrative expense 74,615 68,057 Other income and expense, net (9,798) (6,865) Core NOI 904,813 829,606 Less: Non-Same-Home Core NOI (134,303) (96,711) Same-Home Core NOI $ 770,510 $ 732,895 31 The following tables present a summary of Core NOI for our Same-Home properties, Non-Same-Home and Other properties and total properties for the years ended December 31, 2023 and 2022 (amounts in thousands): For the Year Ended December 31, 2023 Same-Home Properties (1) % of Core Revenue Non-Same-Home and Other Properties % of Core Revenue Total Properties % of Core Revenue Rents from single-family properties $ 1,179,630 $ 217,232 $ 1,396,862 Fees from single-family properties 25,551 5,204 30,755 Bad debt (14,587) (4,980) (19,567) Core revenues 1,190,594 217,456 1,408,050 Property tax expense 203,431 17.1 % 35,994 16.5 % 239,425 17.0 % HOA fees, net (2) 21,644 1.8 % 4,124 1.9 % 25,768 1.8 % R&M and turnover costs, net (2) 89,625 7.5 % 18,748 8.6 % 108,373 7.7 % Insurance 15,085 1.3 % 2,863 1.3 % 17,948 1.3 % Property management expenses, net (3) 90,299 7.6 % 21,424 9.9 % 111,723 7.9 % Core property operating expenses 420,084 35.3 % 83,153 38.2 % 503,237 35.7 % Core NOI $ 770,510 64.7 % $ 134,303 61.8 % $ 904,813 64.3 % For the Year Ended December 31, 2022 Same-Home Properties (1) % of Core Revenue Non-Same-Home and Other Properties % of Core Revenue Total Properties % of Core Revenue Rents from single-family properties $ 1,106,751 $ 170,241 $ 1,276,992 Fees from single-family properties 22,342 4,646 26,988 Bad debt (11,182) (4,870) (16,052) Core revenues 1,117,911 170,017 1,287,928 Property tax expense 186,436 16.6 % 31,148 18.4 % 217,584 16.9 % HOA fees, net (2) 20,393 1.8 % 3,556 2.1 % 23,949 1.9 % R&M and turnover costs, net (2) 82,336 7.4 % 17,877 10.5 % 100,213 7.8 % Insurance 12,155 1.1 % 1,939 1.1 % 14,094 1.1 % Property management expenses, net (3) 83,696 7.5 % 18,786 11.0 % 102,482 7.9 % Core property operating expenses 385,016 34.4 % 73,306 43.1 % 458,322 35.6 % Core NOI $ 732,895 65.6 % $ 96,711 56.9 % $ 829,606 64.4 % (1) Includes 49,198 properties that have been stabilized longer than 90 days prior to January 1, 2022.
Additionally, these metrics should not be used as substitutes for net income or loss or net cash flows from operating activities (as computed in accordance with accounting principles generally accepted in the United States of America (“GAAP”)). 30 Comparison of the Year Ended December 31, 2024 to the Year Ended December 31, 2023 The following are reconciliations of core revenues, Same-Home core revenues, core property operating expenses, Same-Home core property operating expenses, Core NOI and Same-Home Core NOI to their respective GAAP metrics for the years ended December 31, 2024 and 2023 (amounts in thousands): For the Years Ended December 31, 2024 2023 Core revenues and Same-Home core revenues Rents and other single-family property revenues $ 1,728,697 $ 1,623,605 Tenant charge-backs (221,431) (215,555) Core revenues 1,507,266 1,408,050 Less: Non-Same-Home core revenues (178,981) (142,882) Same-Home core revenues $ 1,328,285 $ 1,265,168 Core property operating expenses and Same-Home core property operating expenses Property operating expenses $ 625,883 $ 599,459 Property management expenses 129,321 123,363 Noncash share-based compensation - property management (4,814) (4,030) Expenses reimbursed by tenant charge-backs (221,431) (215,555) Core property operating expenses 528,959 503,237 Less: Non-Same-Home core property operating expenses (71,068) (64,309) Same-Home core property operating expenses $ 457,891 $ 438,928 Core NOI and Same-Home Core NOI Net income $ 468,142 $ 432,142 Hurricane-related charges, net 8,884 — Loss on early extinguishment of debt 6,323 — Gain on sale and impairment of single-family properties and other, net (225,756) (209,834) Depreciation and amortization 477,010 456,550 Acquisition and other transaction costs 12,192 16,910 Noncash share-based compensation - property management 4,814 4,030 Interest expense 165,351 140,198 General and administrative expense 83,590 74,615 Other income and expense, net (22,243) (9,798) Core NOI 978,307 904,813 Less: Non-Same-Home Core NOI (107,913) (78,573) Same-Home Core NOI $ 870,394 $ 826,240 31 The following tables present a summary of Core NOI for our Same-Home properties, Non-Same-Home and Other properties and total properties for the years ended December 31, 2024 and 2023 (amounts in thousands): For the Year Ended December 31, 2024 Same-Home Properties (1) % of Core Revenue Non-Same-Home and Other Properties % of Core Revenue Total Properties % of Core Revenue Rents from single-family properties $ 1,313,101 $ 178,709 $ 1,491,810 Fees from single-family properties 28,843 4,311 33,154 Bad debt (13,659) (4,039) (17,698) Core revenues 1,328,285 178,981 1,507,266 Property tax expense 222,855 16.8 % 29,551 16.5 % 252,406 16.7 % HOA fees, net (2) 23,745 1.8 % 3,166 1.8 % 26,911 1.8 % R&M and turnover costs, net (2) 96,397 7.3 % 16,809 9.4 % 113,206 7.5 % Insurance 16,859 1.3 % 2,962 1.7 % 19,821 1.3 % Property management expenses, net (3) 98,035 7.3 % 18,580 10.3 % 116,615 7.8 % Core property operating expenses 457,891 34.5 % 71,068 39.7 % 528,959 35.1 % Core NOI $ 870,394 65.5 % $ 107,913 60.3 % $ 978,307 64.9 % For the Year Ended December 31, 2023 Same-Home Properties (1) % of Core Revenue Non-Same-Home and Other Properties % of Core Revenue Total Properties % of Core Revenue Rents from single-family properties $ 1,253,000 $ 143,862 $ 1,396,862 Fees from single-family properties 27,008 3,747 30,755 Bad debt (14,840) (4,727) (19,567) Core revenues 1,265,168 142,882 1,408,050 Property tax expense 212,121 16.8 % 27,304 19.1 % 239,425 17.0 % HOA fees, net (2) 22,855 1.8 % 2,913 2.0 % 25,768 1.8 % R&M and turnover costs, net (2) 92,808 7.3 % 15,565 10.9 % 108,373 7.7 % Insurance 15,780 1.2 % 2,168 1.5 % 17,948 1.3 % Property management expenses, net (3) 95,364 7.6 % 16,359 11.5 % 111,723 7.9 % Core property operating expenses 438,928 34.7 % 64,309 45.0 % 503,237 35.7 % Core NOI $ 826,240 65.3 % $ 78,573 55.0 % $ 904,813 64.3 % (1) Includes 51,958 properties that have been stabilized longer than 90 days prior to January 1, 2023.
During the year ended December 31, 2023, we developed or acquired 1,885 homes, including 1,838 newly constructed homes delivered through our AMH Development Program and 47 homes acquired through our National Builder Program and traditional acquisition channel, partially offset by 1,546 homes sold to third parties.
During the year ended December 31, 2024, we developed or acquired 3,724 homes, including (i) 2,000 newly constructed homes delivered to our operating portfolio through our AMH Development Program, (ii) 1,673 homes acquired through a bulk portfolio acquisition and (iii) 51 homes acquired through our National Builder Program and traditional acquisition channels, partially offset by 1,663 homes identified for sale or contributed to unconsolidated joint ventures.
Net cash provided by operating activities increased $73.2 million, or 11.0%, from $665.5 million during the year ended December 31, 2022 to $738.7 million during the year ended December 31, 2023, primarily due to increased cash inflows generated from higher rental rates and a larger number of occupied properties, partially offset by higher cash outflows for property related expenses as a result of inflationary increases. 36 Investing Activities For the Years Ended December 31, Change (Amounts in thousands) 2023 2022 Sources of cash from investing activities: Net proceeds received from sales of single-family properties and other $ 469,463 $ 292,509 $ 176,954 Distributions from joint ventures 47,736 68,310 (20,574) Change in escrow deposits for purchase of single-family properties 4,928 20,431 (15,503) Proceeds received from storm-related insurance claims 4,050 1,981 2,069 Proceeds from notes receivable related to the sale of properties 698 34,090 (33,392) $ 526,875 $ 417,321 $ 109,554 Uses of cash for investing activities: Cash paid for development activity $ (979,848) $ (921,423) $ (58,425) Recurring and other capital expenditures for single-family properties (134,176) (138,779) 4,603 Renovations to single-family properties (40,137) (98,019) 57,882 Cash paid for single-family properties (12,784) (595,171) 582,387 Investment in unconsolidated joint ventures (12,614) (25,313) 12,699 Cash paid for deposits on land option contracts (1,142) (14,548) 13,406 Other investing activities (38,752) (49,570) 10,818 $ (1,219,453) $ (1,842,823) $ 623,370 Net cash used for investing activities $ (692,578) $ (1,425,502) $ 732,924 Net cash used for investing activities decreased $732.9 million, or 51.4%, from $1.4 billion during the year ended December 31, 2022 to $692.6 million during the year ended December 31, 2023.
Net cash provided by operating activities increased $72.8 million, or 9.9%, from $738.7 million during the year ended December 31, 2023 to $811.5 million during the year ended December 31, 2024, primarily due to increased cash inflows generated from higher rental rates and changes in working capital primarily related to the timing of payments for prepaid expenses and other assets and accounts payable and accrued expenses, partially offset by higher cash outflows for property related expenses. 36 Investing Activities For the Years Ended December 31, Change (Amounts in thousands) 2024 2023 Sources of cash from investing activities: Net proceeds received from sales of single-family properties and other $ 573,182 $ 469,463 $ 103,719 Distributions from joint ventures 116,311 47,736 68,575 Proceeds from asset-backed securitization certificates 25,666 — 25,666 Change in escrow deposits for purchase of single-family properties 5,482 4,928 554 Proceeds from notes receivable related to the sale of properties 540 698 (158) Proceeds received from storm-related insurance claims — 4,050 (4,050) $ 721,181 $ 526,875 $ 194,306 Uses of cash for investing activities: Cash paid for development activity $ (845,851) $ (979,848) $ 133,997 Cash paid for single-family properties (495,912) (12,784) (483,128) Recurring and other capital expenditures for single-family properties (121,751) (134,176) 12,425 Renovations to single-family properties (34,052) (40,137) 6,085 Investment in unconsolidated joint ventures (19,680) (12,614) (7,066) Cash paid for deposits on land option contracts (653) (1,142) 489 Other investing activities (29,158) (38,752) 9,594 $ (1,547,057) $ (1,219,453) $ (327,604) Net cash used for investing activities $ (825,876) $ (692,578) $ (133,298) Net cash used for investing activities increased $133.3 million, or 19.2%, from $692.6 million during the year ended December 31, 2023 to $825.9 million during the year ended December 31, 2024.
Single-family properties that we acquire individually (i.e., not through a bulk purchase) are classified as either stabilized or non-stabilized.
Single-family properties that we acquire individually (i.e., not through a bulk purchase) are classified as either stabilized or non-stabilized. A property is classified as stabilized once it has been renovated by the Company or newly constructed and then initially leased or available for rent for a period greater than 90 days.
Results of Operations Net income totaled $432.1 million for the year ended December 31, 2023, compared to $310.0 million for the year ended December 31, 2022. The increase was primarily due to higher net gains on property sales, higher rental rates and a larger number of occupied properties.
Results of Operations Net income totaled $468.1 million for the year ended December 31, 2024, compared to $432.1 million for the year ended December 31, 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−3 removed3 unchanged
Biggest changeSignificant increases in interest rates may also have an adverse impact on our earnings if we are unable to acquire single-family homes with rental rates high enough to offset the increase in interest rates on our borrowings.
Biggest changeSignificant increases in interest rates may also have an adverse impact on our earnings if we are unable to acquire single-family homes with rental rates high enough to offset the increase in interest rates on our borrowings. During the third quarter of 2024, the Company entered into a new credit agreement with a $1.25 billion sustainability-linked revolving credit facility.
As of December 31, 2023, the Company had approximately $4.4 billion of fixed rate debt and therefore the fair value of these instruments is affected by changes in market interest rates.
As of December 31, 2024, the Company had approximately $5.1 billion of fixed rate debt and therefore the fair value of these instruments is affected by changes in market interest rates.
All borrowings under our revolving credit facility bear interest at SOFR, as adjusted for the Company’s SOFR spread, plus a margin of 0.90% until the fully extended maturity date of April 2026 and are subject to a zero percent SOFR floor.
All borrowings under our revolving credit facility bear interest at SOFR plus a 0.10% spread adjustment and a margin of 0.85% until the fully extended maturity date of July 2029 and are subject to a zero percent SOFR floor.
As of December 31, 2023, the Company had $90.0 million of outstanding variable rate debt under its revolving credit facility. We may incur additional variable rate debt in the future, including additional amounts that we may borrow under our revolving credit facility.
As of December 31, 2024, the Company had no outstanding variable rate debt under its revolving credit facility and therefore no exposure to interest rate risk on its current borrowings. We may incur additional variable rate debt in the future, including additional amounts that we may borrow under our revolving credit facility.
The following table presents principal cash flows by scheduled maturity, weighted-average interest rates and the estimated fair value of our fixed rate debt as of December 31, 2023 (amounts in thousands): Expected Maturity Date 2024 2025 2026 2027 2028 Thereafter Total Estimated Fair Value Fixed rate debt $ 948,864 $ 10,302 $ 10,302 $ 10,302 $ 510,302 $ 2,937,086 $ 4,427,158 $ 4,129,737 Weighted-average interest rate 4.07 % 4.33 % 4.73 % 4.72 % 4.78 % 5.40 % 5.06 % Treasury lock agreements are used from time to time to manage the potential change in interest rates in anticipation of the possible issuance of fixed rate debt.
The following table presents principal cash flows by scheduled maturity, weighted-average interest rates and the estimated fair value of our fixed rate debt as of December 31, 2024 (amounts in thousands): Expected Maturity Date 2025 2026 2027 2028 2029 Thereafter Total Estimated Fair Value Fixed rate debt $ 10,302 $ 10,302 $ 10,302 $ 510,302 $ 410,302 $ 4,123,881 $ 5,075,391 $ 4,741,998 Weighted-average interest rate 4.68 % 4.95 % 4.94 % 5.00 % 5.02 % 5.42 % 5.21 % Treasury lock agreements are used from time to time to manage the potential change in interest rates in anticipation of the possible issuance of fixed rate debt.
Removed
During the second quarter of 2023, the Company amended its revolving credit facility in connection with the transition from the London Inter-Bank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”).
Removed
Assuming no change in the outstanding balance of our existing variable rate debt, a hypothetical 100 basis point increase or decrease in SOFR would increase or decrease our projected annual interest expense by approximately $0.9 million. This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment.
Removed
Further, in the event of a change of such magnitude, we would consider taking actions to further mitigate our exposure to the change. However, because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure.

Other AMH 10-K year-over-year comparisons