What changed in this filing

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Item 7. Management’s Discussion and Analysis

2024-02-23 compared with 2023-02-24 · 120 added, 135 removed, 381 unchanged (40% of the section changed)

26 unchanged sentences

Nashville, TN 3,319 5.7 % 823.0 6.4 % 247,960 2,117 16.1 2016

Indianapolis, IN 2,910 5.0 % 499.4 4.1 % 171,612 1,930 19.9 2014

Houston, TX 2,642 4.6 % 465.1 3.8 % 176,023 2,095 17.0 2014

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

Columbus, OH 2,110 3.6 % 397.3 3.2 % 188,290 1,869 20.6 2015

Cincinnati, OH 2,127 3.6 % 418.9 3.3 % 196,952 1,842 21.0 2014

Orlando, FL 1,867 3.2 % 379.1 3.1 % 203,033 1,897 19.3 2015

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

Las Vegas, NV 1,854 3.2 % 493.2 4.0 % 266,016 1,908 13.0 2016

Charleston, SC 1,535 2.6 % 352.2 2.7 % 229,471 1,962 13.0 2017

19 unchanged sentences

Nashville, TN 95.6 % 2,248 12.0 6.1 5.3 %

Indianapolis, IN 95.0 % 1,714 12.1 6.2 5.4 %

Houston, TX 96.7 % 1,883 12.0 6.3 5.5 %

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 %

Columbus, OH 96.2 % 1,962 12.0 6.1 6.9 %

Cincinnati, OH 96.4 % 2,042 12.0 6.3 5.5 %

Orlando, FL 96.2 % 2,053 12.0 6.3 9.9 %

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 %

Las Vegas, NV 91.5 % 2,070 12.0 6.4 7.4 %

Charleston, SC 95.9 % 2,207 12.0 6.3 5.0 %

16 unchanged sentences

Our results of operations and financial condition are affected by numerous factors, many of which are beyond our control.

Key factors that impact our results of operations and financial condition include the pace at which we identify and acquire suitable land and properties, the time and cost required to renovate the acquired properties, the pace and cost of our property developments, the time to lease newly acquired or developed properties at acceptable rental rates, occupancy levels, rates of tenant turnover, the length of vacancy in properties between tenant leases, our expense ratios, our ability to raise capital and our capital structure.

Additionally, recent supply chain disruptions, inflationary increases in labor and material costs and labor shortages have impacted and may continue to impact certain aspects of our business, including our AMH Development Program, our renovation program associated with recently acquired properties and our maintenance program.

Key factors that impact our results of operations and financial condition include the pace at which we identify and acquire suitable land and properties, the time and cost required to renovate the acquired properties, the pace and cost of our property developments, the time to lease newly acquired or developed properties at acceptable rental rates, occupancy levels, rates of tenant turnover, the length of vacancy in properties between tenant leases, our expense ratios, property taxes including changes in rates and valuation assessments of our properties, our ability to raise capital and our capital structure.

Additionally, further supply chain disruptions, inflationary increases in labor and material costs and labor shortages may have the potential to impact certain aspects of our business, including our AMH Development Program, our renovation program associated with acquired properties and our maintenance program.

Property Acquisitions, Development and Dispositions

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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.

We are increasingly focused on developing “built-for-rental” homes through our internal AMH Development Program.

In addition, we also

acquire newly constructed homes from third-party developers through our National Builder Program.

We are also focused on developing “built-for-rental” homes through our internal AMH Development Program.

In addition, we also acquire newly

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.

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We anticipate beginning to grow in these acquisition channels when the housing and capital markets stabilize.

During the year ended December 31, 2022, we developed or acquired 2,958 homes, including 1,320 newly constructed homes delivered through our AMH Development Program, 1,438 homes acquired through our National Builder Program and traditional acquisition channel and 200 homes acquired in a bulk transaction from an unconsolidated joint venture, partially offset by 989 homes sold to third parties or contributed to an unconsolidated joint venture.

During the year ended December 31, 2022, we also developed an additional 863 newly constructed properties which were delivered to our unconsolidated joint ventures, aggregating to 2,183 total program deliveries through our AMH Development Program.

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, 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.

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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.

Additionally, our ability to collect revenues and related operating results are impacted by the credit worthiness and quality of our tenants.

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.

21 unchanged sentences

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.

This increase was primarily due to a larger number of occupied properties resulting from growth in the Company’s portfolio, higher rental rates and lower uncollectible rents, as well as higher net gains on property sales, partially offset by $6.1 million of hurricane-related charges, net in 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.

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.

We classify a property as Same-Home if it has been stabilized longer than 90 days prior to the beginning of the earliest

period presented under comparison and if it has not been classified as held for sale, identified for future sale, or experienced a casualty loss, which allows the performance of these properties to be compared between periods.

We classify a property as Same-Home if it has been stabilized longer than 90 days prior to the beginning of the earliest period presented under comparison and if it has not been classified as held for sale or experienced a casualty loss, which allows the performance of these properties to be compared between periods.

Single-family properties that we acquire individually (i.e., not through a bulk purchase) are classified as either stabilized or non-stabilized.

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Comparison of the Year Ended December 31, 2023 to the Year Ended December 31, 2022

The following table presents 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, 2022 and 2021 (amounts in thousands):

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,

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

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

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

Non-Same-Home Core NOI (134,303) (96,711)

Same-Home Core NOI $ 770,510 $ 732,895

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

Properties (1)

Core Revenue Non-Same-Home and Other Properties % of

Core Revenue Non-Same-Home and

Other Properties % of

Core Revenue Total

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Properties (1)

Core Revenue Non-Same-Home and Other Properties % of

Core Revenue Non-Same-Home and

Other Properties % of

Core Revenue Total

17 unchanged sentences

(3) Presented net of tenant charge-backs and excludes noncash share-based compensation expense related to centralized and field property management employees.

For the Years Ended December 31,

Core revenues and Same-Home core revenues

Rents and Other Single-Family Property Revenues

Tenant charge-backs (202,606) (178,304)

Core revenues 1,287,928 1,125,578

Non-Same-Home core revenues 223,179 144,316

Same-Home core revenues $ 1,064,749 $ 981,262

Core property operating expenses and Same-Home core property operating expenses

Property operating expenses $ 552,091 $ 490,205

Property management expenses 112,698 96,865

Noncash share-based compensation - property management (3,861) (3,004)

Expenses reimbursed by tenant charge-backs (202,606) (178,304)

Core property operating expenses 458,322 405,762

Non-Same-Home core property operating expenses 88,205 61,272

Same-Home core property operating expenses $ 370,117 $ 344,490

Core NOI and Same-Home Core NOI

Net income $ 310,025 $ 210,559

Hurricane-related charges, net 6,133 —

Gain on sale and impairment of single-family properties and other, net (136,459) (49,696)

Depreciation and amortization 426,531 372,848

Acquisition and other transaction costs 23,452 15,749

Noncash share-based compensation - property management 3,861 3,004

Interest expense 134,871 114,893

General and administrative expense 68,057 56,444

Other income and expense, net (6,865) (3,985)

Core NOI 829,606 719,816

Non-Same-Home Core NOI 134,974 83,044

Same-Home Core NOI $ 694,632 $ 636,772

Rents and Other Single-Family Property Revenues

Rents and other single-family property revenues increased 14.3% to $1.5 billion for the year ended December 31, 2022, compared to $1.3 billion for the year ended December 31, 2021.

Revenue growth was driven by an increase in our average occupied portfolio which grew to 54,847 homes for the year ended December 31, 2022, compared to 52,542 homes for the year ended December 31, 2021, as well as higher rental rates and lower uncollectible rents.

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.

Revenue growth was primarily driven by higher rental rates and an increase in our average occupied portfolio which grew to 55,874 homes for the year ended December 31, 2023, compared to 54,847 homes for the year ended December 31, 2022.

Property Operating Expenses

Property operating expenses increased 8.6% to $599.5 million for the year ended December 31, 2023 from $552.1 million for the year ended December 31, 2022.

This increase was primarily attributable to growth in our portfolio, inflationary increases in R&M and turnover costs and outsized increases in property taxes in select states across our portfolio.

This increase was primarily attributable to increased property tax expense as well as inflationary increases in R&M and turnover costs.

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.

The increase in property management expenses was primarily attributable to higher personnel costs from (i) the timing of increased compensation in the second half of 2021 as a result of the inflationary environment and (ii) increased headcount to support growth in our portfolio, as well as an increase in other miscellaneous property management expenses.

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 8.5% to $1.1 billion for the year ended December 31, 2022 from $981.3 million for the year ended December 31, 2021.

This increase was primarily attributable to higher Average Monthly Realized Rent per property, which increased 8.0% to $1,920 per month for the year ended December 31, 2022 compared to $1,777 per month for the year ended December 31, 2021, and lower uncollectible rents, partially offset by a decrease in Average Occupied Days Percentage, which was 97.3% for the year ended December 31, 2022 compared to 97.6% for the year ended December 31, 2021.

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.

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.

Core Property Operating Expenses from Same-Home Properties

Core property operating expenses from Same-Home properties consist of direct property operating expenses, net of tenant charge-backs, and property management costs, net of tenant charge-backs, and excludes noncash share-based compensation expense.

Core property operating expenses from Same-Home properties increased 7.4% to $370.1 million for the year ended December 31, 2022 from $344.5 million for the year ended December 31, 2021 primarily driven by outsized increases in property taxes in select states across our portfolio, higher property management personnel costs due to increased headcount to support growth in our portfolio, and other inflationary increases.

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.

General and Administrative Expense

1 unchanged sentence

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.

The increase in general and administrative expense was primarily related to an increase in noncash share-based compensation expense, as well as the timing of increased personnel and information technology costs to support growth in our business.

The increase in general and administrative expense was primarily related to increased personnel and information technology costs to support growth in our business as well as other inflationary increases and an increase in noncash share-based compensation expense.

Interest Expense

Interest expense increased 3.9% to $140.2 million for the year ended December 31, 2023 from $134.9 million for the year ended December 31, 2022.

This increase was primarily due to additional interest from the issuances of the 2031 and 2051 unsecured senior notes in July 2021 and the 2032 and 2052 unsecured senior notes in April 2022, partially offset by additional capitalized interest during the year ended December 31, 2022 related to an increase in development activities under our AMH Development Program and an increase in properties that underwent renovation during the year ended December 31, 2022.

This increase was primarily due to additional interest from the issuances of the 2032 and 2052 unsecured senior notes in April 2022, partially offset by additional capitalized interest during the year ended December 31, 2023 related to an increase in development activities under our AMH Development Program.

Acquisition and Other Transaction Costs

Acquisition and other transaction costs consist primarily of costs associated with purchases of single-family properties, including newly constructed properties from third-party builders, the development of single-family properties, or the disposal of certain properties or portfolios of properties which do not qualify for capitalization.

Acquisition and other transaction costs consist primarily of personnel and platform costs associated with purchases of single-family properties, including newly constructed properties from third-party builders, or the disposal of certain properties or portfolios of properties which do not qualify for capitalization.

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.

The increase in acquisition and other transaction costs was primarily related to higher personnel costs associated with the growth of our portfolio and higher noncash share-based compensation expense.

The decrease in acquisition and other transaction costs was primarily due to a decrease in personnel costs as a result of fewer planned transactions through our traditional acquisition channel for the year ended December 31, 2023 as well as lower noncash share-based compensation expense.

Depreciation and Amortization

2 unchanged sentences

Our intangible assets are amortized on a straight-line basis over the asset’s estimated economic useful life.

Depreciation and amortization expense increased 14.4% to $426.5 million for the year ended December 31, 2022 from $372.8 million for the year ended December 31, 2021 primarily due to growth in our average number of depreciable properties.

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.

Hurricane-Related Charges, net

1 unchanged sentence

The Company’s property and casualty insurance policies provide coverage for wind and flood damage, as well as business interruption costs, during the period of remediation and repairs, subject to deductibles and limits.

During the year ended December 31, 2022, the Company recognized $8.9 million in gross charges

primarily related to an estimated accrual for minor repair and remediation costs, partially offset by an estimated $2.8 million of related insurance claims that we believe is probable we will recover.

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.

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.

The increase was primarily related to an increase in properties sold as well as higher net gains from property sales, partially offset by higher impairment charges.

The increase was primarily related to higher net gains on property sales resulting from an increase in properties sold.

Other Income and Expense, net

1 unchanged sentence

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 accounting principles generally accepted in the United States of America (“GAAP”).

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.

17 unchanged sentences

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.

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.

No significant impairments on operating properties were recorded during the years ended December 31, 2022, 2021 and 2020.

over the long term directly decreases the likelihood of recording an impairment loss.

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

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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.

As described below, in January 2023, we also issued and physically settled the remaining 8,000,000 Class A common shares under the January 2022 Forward Sale Agreements, receiving net proceeds of $298.4 million.

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.

In January 2024, the Company issued $600.0 million of 5.500% unsecured senior notes due 2034, raising net proceeds of $595.5 million, and issued additional shares under its 2023 At-the-Market Program, raising $33.7 million in gross proceeds.

We maintain an investment grade credit rating which provides for greater availability of and lower cost of debt financing.

1 unchanged sentence

Our expected material cash requirements over the next twelve months consist of (i) contractually obligated expenditures, including payments of principal and interest, (ii) other essential expenditures, including property operating expenses, HOA fees (as applicable), real estate taxes, maintenance capital expenditures, general and administrative expenses and dividends on our equity securities including those paid in accordance with REIT distribution requirements, and (iii) opportunistic expenditures, including to pay for the acquisition, development and renovation of our properties and repurchases of our securities.

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.

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.

In January 2024, the Company gave notice to the third-party lender of its intent to repay all amounts due under the AMH 2014-SFR2 securitization during the first quarter of 2024.

Debt, Note 8.

Accounts Payable and Accrued Expenses and Note 14.

Commitments and Contingencies to our consolidated financial statements included as a separate section in Part IV, “Item 15.

Accounts Payable and Accrued Expenses, Note 14.

Commitments and Contingencies and Note 15.

Subsequent Events to our consolidated financial statements included as a separate section in Part IV, “Item 15.

Exhibit and Financial Statement Schedules” of this Annual Report on Form 10-K for a discussion of our material short-term and long-term cash requirements.

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(1) Amounts represent principal amounts due and exclude unamortized discounts and deferred financing costs.

(2) Represents estimated future interest payments on our debt instruments based on applicable interest rates as of December 31, 2022 and assumes the repayment of the AMH 2015-1 and 2015-2 securitizations on their anticipated repayment dates in 2025.

The fully extended maturity dates for the AMH 2015-1 and 2015-2 securitizations are in 2045 and the interest rates increase on the anticipated repayment dates in 2025.

If the AMH 2015-1 and 2015-2 securitizations are not repaid on the anticipated repayment dates in 2025, our interest on debt obligations above would increase.

Future interest payments on debt obligations would also be impacted by the level of borrowing on our revolving credit facility in the future.

(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.

The fully extended maturity dates for the AMH 2015-SFR1 and AMH 2015-SFR2 securitizations are in 2045 and the interest rates increase on the anticipated repayment dates in 2025.

If the AMH 2015-SFR1 and AMH 2015-SF2 securitizations are not repaid on the anticipated repayment dates in 2025, our interest on debt obligations above would increase.

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.

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Net cash used for investing activities (692,578) (1,425,502) 732,924

Net cash provided by financing activities 786,177 1,064,955 (278,778)

Net increase (decrease) in cash, cash equivalents and restricted cash $ 26,193 $ (73,310) $ 99,503

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.

Net cash provided by operating activities increased $70.3 million, or 11.8%, from $595.2 million during the year ended December 31, 2021 to $665.5 million during the year ended December 31, 2022, primarily as a result of increased cash flows generated from a larger number of occupied properties, higher rental rates and lower uncollectible rents, partially offset by higher cash outflows for property related expenses as a result of inflationary increases and growth in our portfolio.

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.

Investing Activities

4 unchanged sentences

Distributions from joint ventures 47,736 68,310 (20,574)

Proceeds from notes receivable related to the sale of properties 34,090 1,253 32,837

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

1 unchanged sentence

Cash paid for development activity $ (979,848) $ (921,423) $ (58,425)

Cash paid for single-family properties (595,171) (850,071) 254,900

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

Other investing activities (49,570) (22,367) (27,203)

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 $308.0 million, or 17.8%, from $1.7 billion during the year ended December 31, 2021 to $1.4 billion during the year ended December 31, 2022.

Our investing activities are most significantly impacted by the strategic expansion of our portfolio 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.

Cash outflows for the addition of single-family properties to our portfolio through these channels decreased $211.2 million during the year ended December 31, 2022 primarily due to a strategic scale back in the acquisition of single-family properties through our National Builder Program and traditional acquisition channel during the second half of the year ended December 31, 2022 as the housing market adjusts to the current macroeconomic environment.

Homes acquired through our traditional acquisition channel require additional expenditures to prepare them for rental, and cash outflows for renovations to single-family properties increased $50.3 million primarily as a result of an increased volume of properties that underwent initial or property-enhancing renovations during the year ended December 31, 2022.

Recurring and other capital expenditures for single-family properties increased $16.2 million primarily due to growth in our portfolio and inflationary increases in costs.

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.

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.

Cash outflows for the addition of single-family properties to our portfolio through these channels decreased $521.9 million during the year ended December 31, 2023 primarily due to a strategic scale back in the acquisition of single-family properties through our National Builder Program and traditional acquisition channel during the year ended December 31, 2023 as the housing market adjusts to the current macroeconomic environment.

Homes acquired through our traditional acquisition channel require additional expenditures to prepare them for rental, and cash outflows for renovations to single-family properties decreased $57.9 million primarily as a result of a decreased volume of properties that underwent initial or property-enhancing renovations during the year ended December 31, 2023.

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.

Net proceeds received from the sale of single-family properties and other increased $160.4 million as a result of an increased volume of properties sold and a higher average realized sales price per property during the year ended December 31, 2022 and proceeds from notes receivable related to the sale of properties increased $32.8 million year-over-year.

Net cash inflows from unconsolidated joint ventures increased $14.7 million during the year ended December 31, 2022 due to the timing of contributions and distributions to and from our unconsolidated joint ventures.

Cash outflows for other investing activities increased $27.2 million primarily due to investments in venture capital funds focused on proptech and decarbonization in the real estate industry during the year ended December 31, 2022 and a year-over-year increase in cash outflows for information technology projects.

Cash outflows for deposits on land option contracts increased $14.5 million as a result of deposits made during the year ended December 31, 2022.

Net proceeds received from the sale of single-family properties and other increased $177.0 million as a result of an increased volume of properties sold during the year ended December 31, 2023.

In addition, (i) cash outflows for other investing activities decreased $10.8 million and (ii) cash outflows for recurring and other capital expenditures for single-family properties decreased $4.6 million during the year ended December 31, 2023.

These changes were partially offset by (i) a $33.4 million reduction in collections on notes receivables related to property sales and (ii) a $7.9 million reduction in net cash inflows from unconsolidated joint ventures due to the timing of contributions and distributions to and from our unconsolidated joint ventures.

Financing Activities

Net cash provided by financing activities decreased $278.8 million from $1.1 billion during the year ended December 31, 2021 to $786.2 million during the year ended December 31, 2022 primarily due to the debt and equity activity described below, partially offset by $60.2 million of proceeds from liabilities related to consolidated land not owned during the year ended December 31, 2022 (see Land Option Contracts in Note 2.

Significant Accounting Policies).

As of December 31, 2022, the Company had outstanding asset-backed securitizations with varying maturities starting in 2024 with an aggregate principal amount of $1.9 billion and outstanding unsecured senior notes with varying maturities starting in 2028 with an

aggregate principal amount of $2.6 billion.

The Company also amended its existing revolving credit facility during the year ended December 31, 2021 to provide for maximum borrowings of up to $1.25 billion and extend its maturity date to 2025 with two six-month extension options at the Company’s election if certain conditions are met.

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.

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.

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.

The Company’s revolving credit facility has a maximum borrowing capacity of $1.25 billion and matures in 2025 with two six-month extension

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.

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, 2022, the Company issued $900.0 million of unsecured senior notes, receiving $876.8 million in proceeds, net of discount, and paid $8.2 million in deferred financing costs.

The Company also borrowed $620.0 million and paid down $840.0 million on its revolving credit facility and repaid $22.6 million on its asset-backed securitizations.

During the year ended December 31, 2021, the Company issued $750.0 million of unsecured senior notes, receiving $737.2 million in proceeds, net of discount, and paid $18.0 million in deferred financing costs and $4.0 million for the settlement of a treasury lock (see Note 12.

Fair Value) in connection with the issuances.

The Company also borrowed $1.4 billion and paid down $1.1 billion on its revolving credit facility and repaid $24.3 million on its asset-backed securitizations.

The Company also borrowed $620.0 million and paid down $840.0 million on its revolving credit facility, and the Company repaid $22.6 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.

Debt and Note 15.

Subsequent Events to our consolidated financial statements included as a separate section in Part IV, “Item 15.

Exhibit and Financial Statement Schedules” of this Annual Report on Form 10-K.

Class A Common Share Offerings

Class A Common Share Offering

During the first quarter of 2022, the Company completed an underwritten public offering for 23,000,000 of its Class A common shares of beneficial interest, $0.01 par value per share, of which 10,000,000 shares were issued directly by the Company and 13,000,000 shares were offered on a forward basis at the request of the Company by the forward sellers.

In connection with this offering, the Company entered into forward sale agreements with the forward purchasers (the “2022 Forward Sale Agreements”) for these 13,000,000 shares which are accounted for in equity.

The Company received net proceeds of $375.8 million from the 10,000,000 Class A common shares issued directly by the Company after deducting underwriting fees and before offering costs of approximately $0.2 million.

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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.

The Company used these net proceeds to repay indebtedness under its revolving credit facility and for general corporate purposes.

As of December 31, 2022, 8,000,000 Class A common shares remained available for future settlement under the 2022 Forward Sale Agreements.

In January 2023, the Company issued and physically settled the remaining 8,000,000 Class A common shares, 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.

The Company used these net proceeds to repay indebtedness under its revolving credit facility and for general corporate purposes.

During the second quarter of 2021, the Company completed an underwritten public offering for 18,745,000 of its Class A common shares of beneficial interest, $0.01 par value per share, of which 5,500,000 shares were issued directly by the Company and 13,245,000 shares were offered on a forward basis at the request of the Company by the forward sellers.

In connection with this offering, the Company entered into forward sale agreements with the forward purchasers (the “2021 Forward Sale Agreements”) for these 13,245,000 shares which are accounted for in equity.

The Company received net proceeds of $194.0 million from the 5,500,000 Class A common shares issued directly by the Company after deducting underwriting fees and before offering costs of approximately $0.2 million.

The Company used the net proceeds to repay indebtedness under its revolving credit facility, to partially fund the redemption of its Series D and Series E perpetual preferred shares discussed below and for general corporate purposes.

The Company did not initially receive proceeds from the sale of the Class A common shares offered on a forward basis.

During the third and fourth quarters of 2021, the Company issued and physically settled all 13,245,000 Class A common shares under the 2021 Forward Sale Agreements, receiving net proceeds of $463.5 million.

The Company used these net proceeds for general corporate purposes including property acquisitions and developments.

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.

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As a result of the redemption, the Company recorded a $5.3 million allocation of income to the Series F perpetual preferred shareholders within the consolidated statements of operations during the year ended December 31, 2022, which represents the initial liquidation value of the Series F perpetual preferred shares in excess of its carrying value as of the redemption date.

During the second quarter of 2021, the Company redeemed all 10,750,000 shares of the outstanding 6.500% Series D perpetual preferred shares, $0.01 par value per share, for cash at a liquidation preference of $25.00 per share plus any accrued and unpaid

dividends in accordance with the terms of such shares.

The Operating Partnership also redeemed its corresponding Series D perpetual preferred units.

As a result of the redemption, the Company recorded an $8.5 million allocation of income to the Series D perpetual preferred shareholders within the consolidated statements of operations during the year ended December 31, 2021, which represents the initial liquidation value of the Series D perpetual preferred shares in excess of its carrying value as of the redemption date.

During the second quarter of 2021, the Company redeemed all 9,200,000 shares of the outstanding 6.350% Series E perpetual preferred shares, $0.01 par value per share, for cash at a liquidation preference of $25.00 per share plus accrued and unpaid dividends in accordance with the terms of such shares.

The Operating Partnership also redeemed its corresponding Series E perpetual preferred units.

As a result of the redemption, the Company recorded a $7.4 million allocation of income to the Series E perpetual preferred shareholders within the consolidated statements of operations during the year ended December 31, 2021, which represents the initial liquidation value of the Series E perpetual preferred shares in excess of its carrying value as of the redemption date.

At-the-Market Common Share Offering Program

During the second quarter of 2020, the Company extended its at-the-market common share offering program under which it can issue Class A common shares from time to time through various sales agents up to an aggregate gross sales offering price of $500.0 million (the “At-the-Market Program”).

During the second quarter of 2023, the Company entered into a new at-the-market common share offering program, replacing the previously expiring program, under which it can issue Class A common shares from time to time through various sales agents up to an aggregate gross sales offering price of $1.0 billion (the “2023 At-the-Market Program”).

The 2023 At-the-Market Program also provides that we may enter into forward contracts for our Class A common shares with forward sellers and forward purchasers.

The Company intends to use any net proceeds from the At-the-Market Program (i) to repay indebtedness the Company has incurred or expects to incur under its revolving credit facility, (ii) to develop new single-family properties and communities, (iii) to acquire and renovate single-family properties and for related activities in accordance with its business strategy and (iv) for working capital and general corporate purposes, including repurchases of the Company’s securities, acquisitions of additional properties, capital expenditures and the expansion, redevelopment and/or improvement of properties in the Company’s portfolio.

The Company intends to use any net proceeds from the 2023 At-the-Market Program (i) to repay indebtedness the Company has incurred or expects to incur under its revolving credit facility or other debt obligations under its securitizations, (ii) to develop new single-family properties and communities, (iii) to acquire and renovate single-family properties and for related activities in accordance with the Company’s business strategy and (iv) for working capital and general corporate purposes, including repurchases of the Company’s securities, acquisitions of additional properties, capital expenditures and the expansion, redevelopment and/or improvement of properties in the Company’s portfolio.

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 the At-the-Market Program.

During the year ended December 31, 2021, the Company issued 1,749,286 Class A common shares under the At-the-Market Program, raising $72.3 million in gross proceeds before commissions and other expenses of approximately $1.1 million.

As of December 31, 2022, 1,835,416 shares have been issued under the At-the-Market Program and $425.2 million remained available for future share issuances.

During the year ended December 31, 2022, no shares were issued under its previous program.

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.

Subsequent Events to our consolidated financial statements included as a separate section in Part IV, “Item 15.

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.

Share Repurchase Program

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The Operating Partnership funds the payment of distributions.

AMH had an NOL for U.S.

federal income tax purposes of an estimated $11.8 million as of December 31, 2022 and $25.4 million as of December 31, 2021.

We intend to use our NOL (to the extent available) to reduce our REIT taxable income to the extent that REIT taxable income is not reduced by our deduction for dividends paid.

We historically used our net operating loss (“NOL”) for U.S.

federal income tax purposes to reduce our REIT taxable income and have substantially utilized our NOL as of December 31, 2023.

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.

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Funds from Operations (“FFO”) / Core FFO / Adjusted FFO attributable to common share and unit holders

depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

FFO attributable to common share and unit holders is a non-GAAP financial measure that we calculate in accordance with the definition approved by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income or loss calculated in accordance with GAAP, excluding gains and losses from sales or impairment of real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

Core FFO attributable to common share and unit holders is a non-GAAP financial measure that we use as a supplemental measure of our performance.

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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.

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.

or ability to pay dividends.

These metrics also are not necessarily indicative of cash available to fund future cash needs.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis