Jim Watson/AFP via Getty Images (file)
Single-family rental owner AMH raised its full-year core funds-from-operations outlook Wednesday as higher rents lifted quarterly revenue, even as reported net income fell on lower property-sale gains.
The Las Vegas-based company expects 2026 core FFO of $1.96 to $1.98 per share and unit, with a midpoint of $1.97. That midpoint is 2 cents above the prior forecast and represents expected growth of 5.3% from last year.
Third-quarter rents and other single-family property revenue increased 4.1% to $498.1 million from $478.5 million. Core FFO rose to $205.1 million, or 50 cents per share and unit, from $196.7 million, or 47 cents. On the company’s unrounded figures, the per-share increase was 7.4%.
Reported net income attributable to common shareholders moved the other way, falling to $82.3 million, or 23 cents a diluted share, from $99.7 million, or 27 cents. Lower gains on property sales were the main reason, partly offset by rental revenue growth exceeding expense growth.
Renewals outpace new leases
In the same-home portfolio, average occupied days were 96% during the quarter. Blended lease-rate growth was 2.6%, comprising 3.3% growth on renewals and 1% on new leases.
October showed a wider gap: renewal rates rose 3.3%, while new-lease rates increased just 0.1%. Average occupied days remained at 96%. The figures show continued rental growth but a slower pace on newly signed leases than on renewals.
Same-home core net operating income rose 2.5% to $246 million in the quarter. Core revenue increased 2.3%, while property operating expenses rose 1.8%, with repairs, maintenance and turnover costs contributing to the increase.
Development adds homes
AMH delivered 498 newly built homes through its development program during the quarter, including 387 to its wholly owned operating portfolio and 111 to joint ventures. At September 30, it owned 60,626 single-family homes excluding properties held for sale, and had another 4,068 homes in unconsolidated joint ventures.
The company linked its higher annual outlook to a better same-home operating forecast, including lower-than-expected property tax expenses, and the initial leasing of newly developed homes.
Core FFO and adjusted FFO are non-GAAP real-estate performance measures, not substitutes for net income. AMH is not forecasting full-year GAAP net income because property-sale gains, impairments, transaction costs and hurricane-related charges cannot be reasonably predicted. Full results and definitions appear in the company’s quarterly release.
JBizNews Desk | Las Vegas
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
