American Homes 4 Rent 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. Overview We are a Maryland REIT focused on acquiring, developing, renovating, leasing and managing single-family homes as rental properties. The Operating Partnership is the entity through which we conduct substantially all of our business and own, directly or through subsidiaries, substantially all of our assets. We commenced operations in November 2012 and we have elected to be taxed as a REIT. As of June 30, 2025, we owned 61,500 single-family properties in select submarkets of metropolitan statistical areas in 24 states, including 904 properties held for sale, compared to 61,336 single-family properties in 24 states, including 805 properties held for sale, as of December 31, 2024 and 59,493 single-family properties in 21 states, including 633 properties held for sale, as of June 30, 2024. As of June 30, 2025, 58,317 of our total properties (excluding properties held for sale) were occupied, compared to 57,486 of our total properties (excluding properties held for sale) as of December 31, 2024 and 56,669 of our total properties (excluding properties held for sale) as of June 30, 2024. Also, as of June 30, 2025, the Company had an additional 3,616 properties held in unconsolidated joint ventures, compared to 3,376 properties held in unconsolidated joint ventures as of December 31, 2024 and 3,167 properties held in unconsolidated joint ventures as of June 30, 2024. Our portfolio of single-family properties, including those held in our unconsolidated joint ventures, is internally managed through our proprietary property management platform. Key Single-Family Property and Leasing Metrics The following table summarizes certain key single-family properties metrics as of June 30, 2025: 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. Year Purchased or Delivered Atlanta, GA 6,028 9.9 % $ 1,436.6 10.1 % $ 238,325 2,196 17.4 2017 Charlotte, NC 4,244 7.0 % 983.1 6.9 % 231,632 2,119 18.7 2016 Dallas-Fort Worth, TX 3,787 6.2 % 677.6 4.8 % 178,940 2,084 20.9 2014 Nashville, TN 3,383 5.6 % 889.3 6.3 % 262,866 2,122 16.7 2016 Jacksonville, FL 3,365 5.6 % 785.4 5.5 % 233,417 1,926 14.4 2017 Phoenix, AZ 3,300 5.4 % 742.3 5.2 % 224,957 1,854 19.8 2016 Indianapolis, IN 3,030 5.0 % 552.5 3.9 % 182,341 1,934 22.2 2015 Tampa, FL 3,052 5.0 % 762.1 5.4 % 249,730 1,956 14.8 2016 Las Vegas, NV 2,660 4.4 % 838.6 5.9 % 315,290 1,965 10.7 2018 Houston, TX 2,335 3.9 % 425.7 3.0 % 182,305 2,066 19.5 2015 Raleigh, NC 2,167 3.6 % 444.9 3.1 % 205,329 1,899 18.7 2015 Columbus, OH 2,201 3.6 % 461.1 3.3 % 209,502 1,895 21.6 2015 Orlando, FL 2,180 3.6 % 536.5 3.8 % 246,105 1,938 16.6 2016 Cincinnati, OH 2,103 3.5 % 422.6 3.0 % 200,947 1,843 22.4 2014 Salt Lake City, UT 1,937 3.2 % 598.8 4.2 % 309,157 2,243 18.2 2016 Charleston, SC 1,644 2.7 % 401.7 2.8 % 244,368 1,962 13.3 2017 Greater Chicago area, IL and IN 1,512 2.5 % 294.5 2.1 % 194,807 1,869 23.8 2013 San Antonio, TX 1,190 2.0 % 242.9 1.7 % 204,149 1,911 16.1 2016 Boise, ID 1,086 1.8 % 345.7 2.4 % 318,390 1,880 10.8 2018 Savannah/Hilton Head, SC 1,056 1.7 % 231.1 1.6 % 218,812 1,884 16.4 2017 All Other (2) 8,336 13.8 % 2,092.6 15.0 % 251,032 1,942 18.2 2017 Total/Average 60,596 100.0 % $ 14,165.6 100.0 % $ 233,771 1,998 17.9 2016 (1) Excludes 904 single-family properties held for sale as of June 30, 2025. (2) Represents 16 markets in 15 states. 30 The following table summarizes certain key leasing metrics as of June 30, 2025: 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. Blended Change in Rent (5) Atlanta, GA 95.1 % $ 2,317 12.4 6.9 3.9 % Charlotte, NC 96.5 % 2,245 12.3 6.9 4.7 % Dallas-Fort Worth, TX 95.4 % 2,328 12.3 6.9 3.3 % Nashville, TN 96.2 % 2,407 12.2 7.0 3.4 % Jacksonville, FL 95.6 % 2,207 12.3 7.0 2.8 % Phoenix, AZ 94.9 % 2,169 12.0 6.6 4.1 % Indianapolis, IN 96.2 % 1,942 12.4 6.5 6.3 % Tampa, FL 94.9 % 2,475 12.3 7.1 3.7 % Las Vegas, NV 94.0 % 2,358 12.7 6.8 3.5 % Houston, TX 96.0 % 2,099 12.3 6.4 3.7 % Raleigh, NC 96.9 % 2,087 12.6 6.8 3.9 % Columbus, OH 97.1 % 2,272 12.3 6.8 6.1 % Orlando, FL 95.4 % 2,416 12.1 6.9 3.0 % Cincinnati, OH 97.7 % 2,217 12.3 6.9 6.5 % Salt Lake City, UT 96.4 % 2,510 12.1 6.8 5.3 % Charleston, SC 94.0 % 2,359 12.2 6.9 3.9 % Greater Chicago area, IL and IN 97.8 % 2,560 12.4 6.4 7.9 % San Antonio, TX 94.3 % 1,951 12.4 6.8 1.3 % Boise, ID 94.9 % 2,294 12.2 7.4 3.5 % Savannah/Hilton Head, SC 96.1 % 2,316 12.2 6.7 5.0 % All Other (6) 95.4 % 2,318 12.2 6.6 4.4 % Total/Average 95.7 % $ 2,282 12.3 6.8 4.2 % (1) Excludes 904 single-family properties held for sale as of June 30, 2025. (2) For the three months ended June 30, 2025, 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. (3) For the three months ended June 30, 2025, 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. For properties partially owned during the period, this is adjusted to reflect the number of days of ownership. (4) Average Original Lease Term and Average Remaining Lease Term are reflected as of period end. (5) Represents the percentage change in rent on all non-month-to-month lease renewals and re-leases during the three months ended June 30, 2025, compared to the annual rent of the previously expired non-month-to-month comparable long-term lease for each property. (6) Represents 16 markets in 15 states. We believe these key single-family property and leasing metrics provide useful information to investors because they allow investors to understand the composition and performance of our properties on a market by market basis. Management also uses these metrics to understand the composition and performance of our properties at the market level. Factors That Affect Our Results of Operations and Financial Condition 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, property taxes including changes in rates and valuation assessments of our properties, our ability to raise capital and our capital structure. Additionally, labor shortages, supply chain disruptions and inflationary pressures, including as a result of tariffs, have impacted and may in the future 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 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, 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 31 Development Program. In addition, we 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. 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 broker sales via the MLS and our National Builder Program as the housing market adjusts to the current macroeconomic environment. We will continue to evaluate all of our growth channels and grow accordingly, if and when, acquisition opportunities are attractive relative to the condition of capital markets. During the three months ended June 30, 2025, we developed or acquired 506 homes, including 501 newly constructed homes delivered to our operating portfolio through our AMH Development Program and 5 homes acquired through our traditional acquisition channel, partially offset by 610 homes identified for sale. During the three months ended June 30, 2025, we also developed an additional 135 newly constructed homes which were delivered to our unconsolidated joint ventures, aggregating to 636 total home deliveries through our AMH Development Program. During the six months ended June 30, 2025, we developed or acquired 943 homes, including 925 newly constructed homes delivered to our operating portfolio through our AMH Development Program and 18 homes acquired through our traditional acquisition channel, partially offset by 878 homes identified for sale. During the six months ended June 30, 2025, we also developed an additional 256 newly constructed homes which were delivered to our unconsolidated joint ventures, aggregating to 1,181 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. As of June 30, 2025 and December 31, 2024, there were 904 and 805 properties, respectively, as well as certain land lots, classified as held for sale. During the three and six months ended June 30, 2025, we sold 370 and 786 properties, respectively. We will continue to evaluate our properties and land for potential disposition going forward as a normal course of business. Property Operations Homes added to our portfolio through new construction channels include properties developed through our internal AMH Development Program and newly constructed properties acquired from third-party developers through our National Builder Program. Rental homes developed through our AMH Development Program involve substantial up-front costs, time to acquire and develop land, time to build the rental home, and time to lease the rental home before the home generates income. This process is dependent upon the nature of each lot acquired and the timeline varies primarily due to land development requirements. 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. 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. Homes added through our AMH Development Program are available for lease immediately upon or shortly after receipt of a certificate of occupancy. Rental homes acquired from third-party developers through our National Builder Program are dependent on the inventory of newly constructed homes and homes currently under construction. Homes added to our portfolio through traditional acquisition channels require expenditures in addition to payment of the purchase price, including property inspections, closing costs, liens, title insurance, transfer taxes, recording fees, broker commissions, property taxes and homeowner association (“HOA”) fees, when applicable. In addition, we typically incur costs between $20,000 and $40,000 to renovate a home acquired through traditional acquisition channels to prepare it for rental. Renovation work varies, but may include paint, flooring, cabinetry, appliances, plumbing hardware and other items required to prepare the home for rental. The time and cost involved to prepare our homes for rental can impact our financial performance and varies among properties based on several factors, including the source of acquisition channel and age and condition of the property. 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. Our operating results are also impacted by the amount of time it takes to market and lease a property, which can vary greatly among properties, and is impacted by local demand, our marketing techniques and the size of our available inventory. Typically, it takes approximately 10 to 50 days to lease a property after acquiring or developing a new property through our new construction channels and 20 to 40 days after completing the renovation process for a traditionally acquired property. Lastly, our operating results are impacted by the length of stay of our tenants and the amount of time it takes to prepare and re-lease a property after a tenant vacates. 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. 32 Revenues Our revenues are derived primarily from rents collected from tenants for our single-family properties under lease agreements which typically have a term of one year. 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. 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 ability to maintain and grow revenues from our existing portfolio of homes will be dependent on our ability to retain tenants and increase rental rates. Based on our Same-Home population of properties (defined below), the year-over-year increase in Average Monthly Realized Rent per property was 4.0% for the three months ended June 30, 2025, and we experienced turnover rates, which represents the number of tenant move-outs during the period divided by the total number of properties, of 7.9% and 7.5% during the three months ended June 30, 2025 and 2024, respectively. Based on our Same-Home population of properties, the year-over-year increase in Average Monthly Realized Rent per property was 4.2% for the six months ended June 30, 2025, and we experienced turnover rates of 14.6% and 13.8% during the six months ended June 30, 2025 and 2024, respectively. Expenses We monitor the following categories of expenses that we believe most significantly affect our results of operations. Property Operating Expenses Once a property is available for lease for the first time, which we refer to as “rent-ready,” we incur ongoing property-related expenses which may not be subject to our control. These include primarily property taxes, repairs and maintenance (“R&M”), turnover costs, utility expenses that are generally recovered as “tenant charge-backs” (included in rents and other single-family property revenues), HOA fees (when applicable) and insurance. Property Management Expenses As we internally manage our portfolio of single-family properties through our proprietary property management platform, we incur costs such as salary expenses for property management personnel, lease expenses and operating costs for property management offices and technology expenses for maintaining as well as enhancing our property management platform. As part of developing our property management platform, we continue to make significant investments in our personnel, infrastructure, systems and technology that will impact expenses based on investment programs during the year. We believe that these investments will enable our property management platform to become more efficient over time, especially as our portfolio grows. Also included in property management expenses is noncash share-based compensation expense related to centralized and field property management employees. Seasonality We believe that our business and related operating results will be impacted by seasonal factors throughout the year. Historically, we have experienced higher levels of tenant move-outs and move-ins during the late spring and summer months, which impacts both our rental revenues and related turnover costs. Our property operating costs are seasonally impacted in certain markets for expenses such as HVAC repairs, turn costs and landscaping expenses during the summer season. Additionally, our single-family properties are at greater risk in certain markets for adverse weather conditions such as hurricanes in the late summer months and extreme cold weather in the winter months. General and Administrative Expense General and administrative expense primarily consists of corporate payroll and personnel costs, federal and state taxes, trustees’ and officers’ insurance expenses, audit and tax fees, trustee fees and other expenses associated with our corporate and administrative functions. 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. 33 Results of Operations Net income totaled $123.6 million for the three months ended June 30, 2025, compared to $108.5 million for the three months ended June 30, 2024. The increase was primarily due to increases in rents and other single-family property revenues exceeding increases in total expenses and higher net gains on property sales. Net income totaled $252.3 million for the six months ended June 30, 2025, compared to $236.6 million for the six months ended June 30, 2024. The increase was primarily due to increases in rents and other single-family property revenues exceeding increases in total expenses. 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 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. 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. 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. After such time has passed, properties acquired through a bulk purchase are then evaluated on an individual property basis under our standard stabilization criteria. All other properties, including those classified as held for sale or taken out of service as a result of a casualty loss, are classified as Non-Same-Home and Other. One of the primary financial measures we use in evaluating the operating performance of our single-family properties is Core Net Operating Income (“Core NOI”), which we also present separately for our Same-Home portfolio. Core NOI is a supplemental non-GAAP financial measure that we define as core revenues, which is calculated as rents and other single-family property revenues, excluding expenses reimbursed by tenant charge-backs, less core property operating expenses, which is calculated as property operating and property management expenses, excluding noncash share-based compensation expense and expenses reimbursed by tenant charge-backs. 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. We believe Core NOI provides useful information to investors about the operating performance of our single-family properties without the impact of certain operating expenses that are reimbursed through tenant charge-backs. Core NOI and Same-Home Core NOI should be considered only as supplements to net income or loss as a measure of our performance and should not be used as measures of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. 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”)). 34 Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024 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 three months ended June 30, 2025 and 2024 (amounts in thousands): For the Three Months Ended June 30, 2025 2024 Core revenues and Same-Home core revenues Rents and other single-family property revenues $ 457,503 $ 423,494 Tenant charge-backs (52,457) (47,371) Core revenues 405,046 376,123 Less: Non-Same-Home core revenues (43,721) (28,494) Same-Home core revenues $ 361,325 $ 347,629 Core property operating expenses and Same-Home core property operating expenses Property operating expenses $ 160,089 $ 149,470 Property management expenses 34,412 32,382 Noncash share-based compensation - property management (1,137) (1,340) Expenses reimbursed by tenant charge-backs (52,457) (47,371) Core property operating expenses 140,907 133,141 Less: Non-Same-Home core property operating expenses (16,380) (12,999) Same-Home core property operating expenses $ 124,527 $ 120,142 Core NOI and Same-Home Core NOI Net income $ 123,624 $ 108,534 Loss on early extinguishment of debt — 63 Gain on sale and impairment of single-family properties and other, net (51,908) (43,892) Depreciation and amortization 126,939 117,603 Acquisition and other transaction costs 2,655 2,937 Noncash share-based compensation - property management 1,137 1,340 Interest expense 46,303 38,678 General and administrative expense 20,008 21,693 Other income and expense, net (4,619) (3,974) Core NOI 264,139 242,982 Less: Non-Same-Home Core NOI (27,341) (15,495) Same-Home Core NOI $ 236,798 $ 227,487 35 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 three months ended June 30, 2025 and 2024 (amounts in thousands): For the Three Months Ended June 30, 2025 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 $ 355,364 $ 43,174 $ 398,538 Fees from single-family properties 8,320 1,233 9,553 Bad debt (2,359) (686) (3,045) Core revenues 361,325 43,721 405,046 Property tax expense 59,005 16.4 % 7,114 16.3 % 66,119 16.3 % HOA fees, net (2) 6,575 1.8 % 774 1.8 % 7,349 1.8 % R&M and turnover costs, net (2) 28,279 7.8 % 3,529 8.1 % 31,808 7.9 % Insurance 4,165 1.2 % 449 1.0 % 4,614 1.1 % Property management expenses, net (3) 26,503 7.3 % 4,514 10.3 % 31,017 7.7 % Core property operating expenses 124,527 34.5 % 16,380 37.5 % 140,907 34.8 % Core NOI $ 236,798 65.5 % $ 27,341 62.5 % $ 264,139 65.2 % For the Three Months Ended June 30, 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 $ 342,982 $ 28,432 $ 371,414 Fees from single-family properties 7,311 833 8,144 Bad debt (2,664) (771) (3,435) Core revenues 347,629 28,494 376,123 Property tax expense 58,712 16.9 % 5,314 18.7 % 64,026 17.0 % HOA fees, net (2) 6,248 1.8 % 490 1.7 % 6,738 1.8 % R&M and turnover costs, net (2) 25,092 7.2 % 3,171 11.1 % 28,263 7.5 % Insurance 4,414 1.3 % 534 1.9 % 4,948 1.3 % Property management expenses, net (3) 25,676 7.4 % 3,490 12.2 % 29,166 7.8 % Core property operating expenses 120,142 34.6 % 12,999 45.6 % 133,141 35.4 % Core NOI $ 227,487 65.4 % $ 15,495 54.4 % $ 242,982 64.6 % (1) Includes 54,029 properties that have been stabilized longer than 90 days prior to January 1, 2024. (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 8.0% to $457.5 million for the three months ended June 30, 2025 from $423.5 million for the three months ended June 30, 2024. Revenue growth was driven by an increase in our average occupied portfolio which grew to 58,282 homes for the three months ended June 30, 2025, compared to 56,516 homes for the three months ended June 30, 2024, as well as higher rental rates. Property Operating Expenses Property operating expenses increased 7.1% to $160.1 million for the three months ended June 30, 2025 from $149.5 million for the three months ended June 30, 2024. The increase was primarily driven by growth in our portfolio which resulted in increases in R&M and turnover costs as well as annual increases in property tax expense. 36 Property Management Expenses Property management expenses for the three months ended June 30, 2025 and 2024 were $34.4 million and $32.4 million, respectively, which included $1.1 million and $1.3 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 an increase in personnel related expenses. Core Revenues from Same-Home Properties Core revenues from Same-Home properties increased 3.9% to $361.3 million for the three months ended June 30, 2025 from $347.6 million for the three months ended June 30, 2024. This increase was primarily attributable to higher Average Monthly Realized Rent per property, which increased 4.0% to $2,276 per month for the three months ended June 30, 2025 compared to $2,188 per month for the three months ended June 30, 2024, 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 96.3% for the three months ended June 30, 2025 compared to 96.7% for the three months ended June 30, 2024. 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 3.6% to $124.5 million for the three months ended June 30, 2025 from $120.1 million for the three months ended June 30, 2024 primarily driven by higher R&M and turnover costs, net. The increase was partially due to timing associated with incremental turnover costs related to the Company’s lease expiration management initiative, which is designed to shift lease expiration volume to the first half of the year to better align with the peak leasing season. General and Administrative Expense General and administrative expense primarily consists of corporate payroll and personnel costs, federal and state taxes, trustees’ and officers’ insurance expense, audit and tax fees, trustee fees and other expenses associated with our corporate and administrative functions. General and administrative expense for the three months ended June 30, 2025 and 2024 was $20.0 million and $21.7 million, respectively, which included $4.0 million and $7.6 million, respectively, of noncash share-based compensation expense in each period related to corporate administrative employees. The decrease in general and administrative expense was primarily due to a decrease in noncash share-based compensation expense, partially offset by an increase in personnel related expenses. Interest Expense Interest expense increased 19.7% to $46.3 million for the three months ended June 30, 2025 from $38.7 million for the three months ended June 30, 2024. The increase was primarily due to additional interest from the issuances of unsecured senior notes in June 2024, December 2024 and May 2025, partially offset by lower interest expense resulting from the payoffs of the AMH 2014-SFR3 securitization in August 2024 and the AMH 2015-SFR1 securitization in March 2025. Acquisition and Other Transaction Costs 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 three months ended June 30, 2025 and 2024 were $2.7 million and $2.9 million, respectively, which included $1.3 million and $1.6 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 noncash share-based compensation expense. 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. Depreciation and amortization expense increased 7.9% to $126.9 million for the three months ended June 30, 2025 from $117.6 million for the three months ended June 30, 2024 primarily due to growth in the average number and cost of depreciable properties as well as ongoing capital investments into existing properties. 37 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 three months ended June 30, 2025 and 2024 was $51.9 million and $43.9 million, respectively, which included $5.8 million and $2.4 million, respectively, of impairment charges related to homes and land classified as held for sale during each period. The increase was primarily related to higher net gains on property sales. Loss on Early Extinguishment of Debt Loss on early extinguishment of debt was zero for three months ended June 30, 2025, compared to $0.1 million for the three months ended June 30, 2024, which related to legal and administrative fees associated with the payoff of the AMH 2014-SFR2 securitization in February 2024. Other Income and Expense, net Other income and expense, net for the three months ended June 30, 2025 and 2024 was $4.6 million and $4.0 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. Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024 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 six months ended June 30, 2025 and 2024 (amounts in thousands): For the Six Months Ended June 30, 2025 2024 Core revenues and Same-Home core revenues Rents and other single-family property revenues $ 916,779 $ 847,049 Tenant charge-backs (116,318) (104,708) Core revenues 800,461 742,341 Less: Non-Same-Home core revenues (83,549) (54,486) Same-Home core revenues $ 716,912 $ 687,855 Core property operating expenses and Same-Home core property operating expenses Property operating expenses $ 327,619 $ 305,397 Property management expenses 68,593 63,784 Noncash share-based compensation - property management (2,383) (2,784) Expenses reimbursed by tenant charge-backs (116,318) (104,708) Core property operating expenses 277,511 261,689 Less: Non-Same-Home core property operating expenses (32,562) (25,810) Same-Home core property operating expenses $ 244,949 $ 235,879 Core NOI and Same-Home Core NOI Net income $ 252,337 $ 236,629 Loss on early extinguishment of debt 216 1,017 Gain on sale and impairment of single-family properties and other, net (113,924) (112,793) Depreciation and amortization 251,867 233,329 Acquisition and other transaction costs 5,716 6,261 Noncash share-based compensation - property management 2,383 2,784 Interest expense 91,729 77,255 General and administrative expense 39,679 43,578 Other income and expense, net (7,053) (7,408) Core NOI 522,950 480,652 Less: Non-Same-Home Core NOI (50,987) (28,676) Same-Home Core NOI $ 471,963 $ 451,976 38 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 six months ended June 30, 2025 and 2024 (amounts in thousands): For the Six Months Ended June 30, 2025 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 $ 705,967 $ 82,902 $ 788,869 Fees from single-family properties 16,601 2,331 18,932 Bad debt (5,656) (1,684) (7,340) Core revenues 716,912 83,549 800,461 Property tax expense 118,811 16.6 % 14,248 17.1 % 133,059 16.6 % HOA fees, net (2) 12,749 1.8 % 1,414 1.7 % 14,163 1.8 % R&M and turnover costs, net (2) 52,038 7.3 % 7,051 8.4 % 59,089 7.4 % Insurance 8,444 1.2 % 1,101 1.3 % 9,545 1.2 % Property management expenses, net (3) 52,907 7.3 % 8,748 10.5 % 61,655 7.7 % Core property operating expenses 244,949 34.2 % 32,562 39.0 % 277,511 34.7 % Core NOI $ 471,963 65.8 % $ 50,987 61.0 % $ 522,950 65.3 % For the Six Months Ended June 30, 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 $ 678,864 $ 54,599 $ 733,463 Fees from single-family properties 14,587 1,558 16,145 Bad debt (5,596) (1,671) (7,267) Core revenues 687,855 54,486 742,341 Property tax expense 117,645 17.1 % 10,969 20.2 % 128,614 17.3 % HOA fees, net (2) 12,077 1.8 % 975 1.8 % 13,052 1.8 % R&M and turnover costs, net (2) 46,984 6.8 % 6,125 11.2 % 53,109 7.2 % Insurance 8,742 1.3 % 983 1.8 % 9,725 1.3 % Property management expenses, net (3) 50,431 7.3 % 6,758 12.4 % 57,189 7.7 % Core property operating expenses 235,879 34.3 % 25,810 47.4 % 261,689 35.3 % Core NOI $ 451,976 65.7 % $ 28,676 52.6 % $ 480,652 64.7 % (1) Includes 54,029 properties that have been stabilized longer than 90 days prior to January 1, 2024. (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 8.2% to $916.8 million for the six months ended June 30, 2025 from $847.0 million for the six months ended June 30, 2024. Revenue growth was driven by an increase in our average occupied portfolio which grew to 58,016 homes for the six months ended June 30, 2025, compared to 56,266 homes for the six months ended June 30, 2024, as well as higher rental rates. Property Operating Expenses Property operating expenses increased 7.3% to $327.6 million for the six months ended June 30, 2025 from $305.4 million for the six months ended June 30, 2024. The increase was primarily driven by growth in our portfolio which resulted in increases in R&M and turnover costs as well as annual increases in property tax expense. 39 Property Management Expenses Property management expenses for the six months ended June 30, 2025 and 2024 were $68.6 million and $63.8 million, respectively, which included $2.4 million and $2.8 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 an increase in personnel related expenses. Core Revenues from Same-Home Properties Core revenues from Same-Home properties increased 4.2% to $716.9 million for the six months ended June 30, 2025 from $687.9 million for the six months ended June 30, 2024. This increase was primarily attributable to higher Average Monthly Realized Rent per property, which increased 4.2% to $2,264 per month for the six months ended June 30, 2025 compared to $2,172 per month for the six months ended June 30, 2024, as well as higher fees from single-family properties, partially offset by a decrease in Average Occupied Days Percentage, which was 96.2% for the six months ended June 30, 2025 compared to 96.4% for the six months ended June 30, 2024. 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 3.8% to $244.9 million for the six months ended June 30, 2025 from $235.9 million for the six months ended June 30, 2024 primarily driven by higher R&M and turnover costs, net and property management expenses, net. The increase in R&M and turnover costs, net was partially due to timing associated with incremental turnover costs related to the Company’s lease expiration management initiative, which is designed to shift lease expiration volume to the first half of the year to better align with the peak leasing season. General and Administrative Expense General and administrative expense primarily consists of corporate payroll and personnel costs, federal and state taxes, trustees’ and officers’ insurance expense, audit and tax fees, trustee fees and other expenses associated with our corporate and administrative functions. General and administrative expense for the six months ended June 30, 2025 and 2024 was $39.7 million and $43.6 million, respectively, which included $8.9 million and $14.4 million, respectively, of noncash share-based compensation expense in each period related to corporate administrative employees. The decrease in general and administrative expense was primarily due to a decrease in noncash share-based compensation expense. Interest Expense Interest expense increased 18.7% to $91.7 million for the six months ended June 30, 2025 from $77.3 million for the six months ended June 30, 2024. The increase was primarily due to additional interest from the issuances of unsecured senior notes in January 2024, June 2024, December 2024 and May 2025, partially offset by lower interest expense resulting from the payoffs of the AMH 2014-SFR2 securitization in February 2024, the AMH 2014-SFR3 securitization in August 2024 and the AMH 2015-SFR1 securitization in March 2025. Acquisition and Other Transaction Costs 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 six months ended June 30, 2025 and 2024 were $5.7 million and $6.3 million, respectively, which included $2.9 million and $3.2 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 noncash share-based compensation expense. 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. Depreciation and amortization expense increased 7.9% to $251.9 million for the 40 six months ended June 30, 2025 from $233.3 million for the six months ended June 30, 2024 primarily due to growth in the average number and cost of depreciable properties as well as ongoing capital investments into existing properties. 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 six months ended June 30, 2025 and 2024 was $113.9 million and $112.8 million, respectively, which included $10.3 million and $3.3 million, respectively, of impairment charges related to homes and land classified as held for sale during each period. The increase was primarily related to higher net gains on property sales. Loss on Early Extinguishment of Debt Loss on early extinguishment of debt for the six months ended June 30, 2025 and 2024 was $0.2 million and $1.0 million, respectively. The decrease was primarily due to lower charges incurred related to the payoff of the AMH 2015-SFR1 securitization in March 2025 compared to the payoff of the AMH 2014-SFR2 securitization in February 2024. Other Income and Expense, net Other income and expense, net for the six months ended June 30, 2025 and 2024 was $7.1 million and $7.4 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. Critical Accounting Estimates Our critical accounting estimates are included in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the 2024 Annual Report. There have been no material changes to these estimates during the six months ended June 30, 2025. Recent Accounting Pronouncements See Note 2. Significant Accounting Policies to our condensed consolidated financial statements in this report for a discussion of the adoption and potential impact of recently issued accounting standards, if any. Liquidity and Capital Resources Liquidity is a measure of our ability to meet potential cash requirements, maintain our assets, fund our operations, make distributions to our shareholders and OP unitholders, including AMH, and meet other general requirements of our business. Our liquidity, to a certain extent, is subject to general economic, financial, competitive and other factors beyond our control. Sources of Capital We expect to satisfy our cash requirements through cash provided by operations, long-term secured and unsecured borrowings, issuances of debt and equity securities (including OP units), property dispositions and joint venture transactions. We expect to meet our operating liquidity requirements and our dividend distributions generally through cash on hand and cash provided by operations. For our acquisition and development expenditures, we expect to supplement these sources through the issuance of equity securities, including under our 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. 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 June 30, 2025 included $323.3 million of cash and cash equivalents. Additionally, as of June 30, 2025, we had no outstanding borrowings and $1.6 million committed to outstanding letters of credit under our $1.25 billion revolving credit facility, leaving $1.25 billion of remaining borrowing capacity. During the second quarter of 2025, the Company issued $650.0 million of 4.950% unsecured senior notes with a maturity date of June 15, 2030 (the “2030 Notes”), raising net proceeds of $642.5 million before offering costs of $1.3 million. Under our At-the-Market Program discussed below, we also had $753.7 million remaining available for future share issuances as of June 30, 2025. We maintain an investment grade credit rating which provides for greater availability of and lower cost of debt financing. 41 Uses of Capital 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. Additionally, in July 2025, the Company provided notice to the third-party lender of its intent to repay all amounts due under the AMH 2015-SFR2 securitization during the third quarter of 2025. 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. During the first quarter of 2025, we repaid all amounts due under the AMH 2015-SFR1 securitization. Except as described in Note 8. Debt, Note 9. Accounts Payable and Accrued Expenses, Note 15. Commitments and Contingencies and Note 17. Subsequent Events to our condensed consolidated financial statements in this report, there have been no other material changes outside the ordinary course of business to our other known contractual obligations described in “Liquidity and Capital Resources” in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the 2024 Annual Report. Cash Flows The following table summarizes the Company’s and the Operating Partnership’s cash flows for the six months ended June 30, 2025 and 2024 (amounts in thousands): For the Six Months Ended June 30, 2025 2024 Change Net cash provided by operating activities $ 495,261 $ 475,780 $ 19,481 Net cash used for investing activities (228,405) (108,312) (120,093) Net cash (used for) provided by financing activities (150,472) 292,317 (442,789) Net increase in cash, cash equivalents and restricted cash $ 116,384 $ 659,785 $ (543,401) 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. Net cash provided by operating activities increased $19.5 million, or 4.1%, from $475.8 million for the six months ended June 30, 2024 to $495.3 million for the six months ended June 30, 2025, primarily due to increased cash inflows generated from a larger number of occupied properties and higher rental rates, partially offset by higher cash outflows for property related expenses as well as changes in working capital primarily related to the timing of payments for prepaid expenses and other assets and accounts payable and accrued expenses. Investing Activities 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 acquisition of newly built properties through our National Builder Program and the development of “built-for-rental” homes through our AMH Development Program. 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 have strategically scaled back acquisitions of single-family properties through broker sales via the MLS and our National Builder Program as the housing market adjusts to the current macroeconomic environment. We will continue to evaluate all of our growth channels and grow accordingly, if and when, acquisition opportunities are attractive relative to the condition of capital markets. 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 cash used for investing activities increased $120.1 million, or 110.9%, from $108.3 million for the six months ended June 30, 2024 to $228.4 million for the six months ended June 30, 2025. The increase was primarily attributable to (i) a $94.9 million decrease in distributions from joint ventures, net of contributions, primarily due to additional cash distributions received with respect to our property and land contributions during the six months ended June 30, 2024, (ii) $25.7 million of nonrecurring cash proceeds received during the six months ended June 30, 2024 for our AMH 2014-SFR2 Class F asset-backed securitization certificates, (iii) an 42 $11.7 million increase in cash outflows for recurring and other capital expenditures and renovations to single-family properties due to growth in our portfolio and an increase in spend on property-enhancing capital expenditures and repairs for damages incurred from Hurricanes Milton and Helene and (iv) a $1.4 million increase in cash outflows for other investing activities. These changes were partially offset by a $13.3 million decrease in cash outflows for the addition of single-family properties to our portfolio, primarily for our AMH Development Program, as a result of the timing of development-related payments . Financing Activities Net cash used for financing activities was $150.5 million for the six months ended June 30, 2025 compared to net cash provided by financing activities of $292.3 million for the six months ended June 30, 2024. The change was primarily due to (i) a $446.7 million decrease in proceeds from unsecured senior notes, net of discounts and deferred financing costs paid, from the issuance of the 2030 Notes (see below) during the six months ended June 30, 2025 compared to two issuances during the six months ended June 30, 2024, (ii) a $36.4 million increase in distributions paid to common share and unit holders resulting from a 15% increase in distributions paid per common share and unit during the six months ended June 30, 2025, (iii) $33.2 million in nonrecurring proceeds from the issuance of Class A common shares, net of offering costs, during the six months ended June 30, 2024 and (iv) a $26.0 million increase in payments on asset-backed securitizations resulting from the payoff of the AMH 2015-SFR1 securitization during the six months ended June 30, 2025 compared to the payoff of the AMH 2014-SFR2 securitization during the six months ended June 30, 2024. These changes were partially offset by (i) $90.0 million of payments on our revolving credit facility during the six months ended June 30, 2024 and (ii) an $11.8 million decrease in payments to a land banking entity related to liabilities to repurchase consolidated land not owned for our AMH Development Program. Early Extinguishment of Debt During the first quarter of 2025, the Operating Partnership paid off the $493.2 million outstanding principal on the AMH 2015-SFR1 securitization, which resulted in $0.2 million of charges related to legal fees that are included in loss on early extinguishment of debt within the condensed consolidated statements of operations. The payoff of the AMH 2015-SFR1 securitization also resulted in the release of the 4,661 homes pledged as collateral and $10.7 million of cash restricted for lender requirements. Unsecured Senior Notes During the second quarter of 2025, the Operating Partnership issued the 2030 Notes. Interest on the 2030 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2025. The Operating Partnership received aggregate net proceeds of $642.5 million from this offering, after underwriting fees of $3.9 million and a $3.6 million discount, and before offering costs of $1.3 million. The Operating Partnership used the net proceeds primarily to repay outstanding indebtedness, including repayment of amounts outstanding on its revolving credit facility, as well as general corporate purposes. The Operating Partnership may redeem the 2030 Notes in whole at any time or in part from time to time at the applicable redemption price specified in the indenture. If the 2030 Notes are redeemed on or after May 15, 2030 (one month prior to the maturity date), the redemption price will be equal to 100% of the principal amount of the 2030 Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. The 2030 Notes are the Operating Partnership’s unsecured and unsubordinated obligations and rank equally in right of payment with all of the Operating Partnership’s existing and future unsecured and unsubordinated indebtedness. The indenture requires that we maintain certain financial covenants. At-the-Market Common Share Offering Program The Company maintains an 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 $1.0 billion (the “At-the-Market Program”). The 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 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 At-the-Market Program may be suspended or terminated by the Company at any time. During the first quarter of 2024, the Company directly issued 932,746 Class A common shares under its At-the-Market Program, raising $33.7 million in gross proceeds before commissions and other expenses of approximately $0.5 million. Additionally, the Company entered into a forward sale agreement with the forward purchaser during the first quarter of 2024 (the “March 2024 Forward Sale Agreement”) to offer 2,987,024 Class A common shares on a forward basis under its At-the-Market 43 Program at the request of the Company by the forward seller. The Company issued and physically settled the 2,987,024 Class A common shares during the fourth quarter of 2024, receiving gross proceeds of $110.6 million before commissions and other expenses of approximately $0.8 million and before offering costs of approximately $0.2 million. During the six months ended June 30, 2025, no shares were issued under the At-the-Market Program. As of June 30, 2025, 6,719,453 shares have been issued under the At-the-Market Program and $753.7 million remained available for future share issuances. 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. 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. The program does not have an expiration date, but may be suspended or discontinued at any time without notice. All repurchased shares are constructively retired and returned to an authorized and unissued status. The Operating Partnership funds the repurchases and constructively retires an equivalent number of corresponding Class A units. During the six months ended June 30, 2025 and 2024, we did not repurchase and retire any of our Class A common shares or preferred shares. As of June 30, 2025, 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. Distributions As a REIT, we generally are required to distribute annually to our shareholders at least 90% of our REIT taxable income (determined without regard to the deduction for dividends paid and any net capital gains) and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our REIT taxable income (determined without regard to the deduction for dividends paid and including any net capital gains). The Operating Partnership funds the payment of distributions. During the six months ended June 30, 2025 and 2024, the Company distributed an aggregate $261.6 million and $225.1 million, respectively, to common shareholders, preferred shareholders and noncontrolling interests on a cash basis. Tax Changes in One Big Beautiful Bill Act On July 4, 2025, the President signed into law H.R. 1, originally titled the “One Big Beautiful Bill Act” (the “Act”). The Act made several tax changes that impact us and our shareholders, the most significant of which are summarized as follows. First, the Act preserves the eligibility of REIT ordinary dividends for the qualified business income deduction in Section 199A of the Internal Revenue Code of 1986, as amended (the “Code”), and it makes that deduction permanent. Second, effective for taxable years beginning after December 31, 2025, the Act increases the quarterly asset test limit on securities of taxable REIT subsidiaries from 20% to 25%. Finally, for purposes of the limitation on business interest deductions in Section 163(j) of the Code, the Act applies the more favorable earnings before interest, taxes, depreciation and amortization (“EBITDA”) calculation for taxable years starting on or after January 1, 2025, and makes the more favorable EBITDA calculation permanent and, for taxable years beginning on or after January 1, 2026, the Act generally calculates the Section 163(j) limitation prior to the application of any interest capitalization provisions. Additional Non-GAAP Measures Funds from Operations (“FFO”) / Core FFO / Adjusted FFO attributable to common share and unit holders 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 real estate 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. We compute this metric by adjusting FFO attributable to common share and unit holders for (1) 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 and adjustments for investments in proptech venture capital funds related to the pro rata equity pickup of realized and unrealized gains and losses from their portfolio investments, (2) noncash share-based compensation expense, 44 (3) hurricane-related charges, net, which result in material charges to our single-family property portfolio, (4) gain or loss on early extinguishment of debt and (5) the allocation of income to our perpetual preferred shares in connection with their redemption. Adjusted FFO attributable to common share and unit holders is a non-GAAP financial measure that we use as a supplemental measure of our performance. We compute this metric by adjusting Core FFO attributable to common share and unit holders for (1) Recurring Capital Expenditures that are necessary to help preserve the value and maintain functionality of our properties and (2) capitalized leasing costs incurred during the period. 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. We present FFO attributable to common share and unit holders because we consider this metric to be an important measure of the performance of real estate companies, as do many investors and analysts in evaluating the Company. We believe that FFO attributable to common share and unit holders provides useful information to investors because this metric excludes depreciation, which is included in computing net income and assumes the value of real estate diminishes predictably over time. We believe that real estate values fluctuate due to market conditions and in response to inflation. 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. These metrics also are not necessarily indicative of cash available to fund future cash needs. Because other REITs may not compute these measures in the same manner, they may not be comparable among REITs. 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 three and six months ended June 30, 2025 and 2024 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to common shareholders $ 105,553 $ 92,142 $ 215,525 $ 201,431 Adjustments: Noncontrolling interests in the Operating Partnership 14,585 12,906 29,840 28,226 Gain on sale and impairment of single-family properties and other, net (51,908) (43,892) (113,924) (112,793) Adjustments for unconsolidated real estate joint ventures 1,821 1,196 3,305 2,793 Depreciation and amortization 126,939 117,603 251,867 233,329 Less: depreciation and amortization of non-real estate assets (5,511) (4,769) (10,876) (9,424) FFO attributable to common share and unit holders (1) $ 191,479 $ 175,186 $ 375,737 $ 343,562 Adjustments: Acquisition, other transaction costs and other 1,445 2,937 5,535 6,261 Noncash share-based compensation - general and administrative 3,987 7,559 8,854 14,398 Noncash share-based compensation - property management 1,137 1,340 2,383 2,784 Loss on early extinguishment of debt — 63 216 1,017 Core FFO attributable to common share and unit holders (1) $ 198,048 $ 187,085 $ 392,725 $ 368,022 Recurring Capital Expenditures (20,515) (21,403) (37,344) (35,527) Leasing costs (1,098) (1,042) (2,337) (1,837) Adjusted FFO attributable to common share and unit holders (1) $ 176,435 $ 164,640 $ 353,044 $ 330,658 (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 condensed consolidated financial statements. See Note 10. Shareholders’ Equity / Partners’ Capital to our condensed consolidated financial statements included in this report. EBITDA / EBITDAre / Adjusted EBITDAre / Fully Adjusted EBITDAre EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure and is used by us and others as a supplemental measure of performance. EBITDAre is a supplemental non-GAAP financial measure, which we calculate in accordance with the definition approved by NAREIT by adjusting EBITDA for gains and losses from sales or impairments of single-family properties and adjusting for unconsolidated real estate joint ventures on the same basis. Adjusted 45 EBITDAre is a supplemental non-GAAP financial measure calculated by adjusting EBITDAre for (1) 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 and adjustments for investments in proptech venture capital funds related to the pro rata equity pickup of realized and unrealized gains and losses from their portfolio investments, (2) noncash share-based compensation expense, (3) hurricane-related charges, net, which result in material charges to our single-family property portfolio and (4) gain or loss on early extinguishment of debt. Fully Adjusted EBITDAre is a supplemental non-GAAP financial measure calculated by adjusting Adjusted EBITDAre for (1) Recurring Capital Expenditures and (2) leasing costs. 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. 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. 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 three and six months ended June 30, 2025 and 2024 (amounts in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 123,624 $ 108,534 $ 252,337 $ 236,629 Interest expense 46,303 38,678 91,729 77,255 Depreciation and amortization 126,939 117,603 251,867 233,329 EBITDA $ 296,866 $ 264,815 $ 595,933 $ 547,213 Gain on sale and impairment of single-family properties and other, net (51,908) (43,892) (113,924) (112,793) Adjustments for unconsolidated real estate joint ventures 1,821 1,196 3,305 2,793 EBITDAre $ 246,779 $ 222,119 $ 485,314 $ 437,213 Noncash share-based compensation - general and administrative 3,987 7,559 8,854 14,398 Noncash share-based compensation - property management 1,137 1,340 2,383 2,784 Acquisition, other transaction costs and other 1,445 2,937 5,535 6,261 Loss on early extinguishment of debt — 63 216 1,017 Adjusted EBITDAre $ 253,348 $ 234,018 $ 502,302 $ 461,673 Recurring Capital Expenditures (20,515) (21,403) (37,344) (35,527) Leasing costs (1,098) (1,042) (2,337) (1,837) Fully Adjusted EBITDAre $ 231,735 $ 211,573 $ 462,621 $ 424,309