American Homes 4 Rent books YOY rise in Q1 core FFO per share

American Homes 4 Rent reported core funds from operations attributable to common share and unit holders for the first quarter of $116.9 million, or 32 cents per share, up from $103.1 million, or 29 cents per share, in the 2020 first quarter.

Adjusted FFO for the quarter grew year over year to $106.3 million, or 29 cents per share, from $93.5 million, or 26 cents per share.

The single-family real estate investment trust attributed the improved results mainly to growth in its portfolio and a larger number of occupied properties, as well as higher rental rates, partially offset by $4.9 million of negative financial impacts related to the coronavirus pandemic. This includes $4.5 million of increased uncollectible rents and $400,000 of increased uncollectible tenant reimbursements.

The S&P Capital IQ consensus FFO-per-share estimate for the quarter was 31 cents.

Rents and other single-family property revenues for the quarter amounted to $312.6 million, an increase of 8.8% from $287.3 million in the 2020 first quarter.

In reporting results, the REIT said it expects core FFO per share in the range of $1.24 to $1.30 for 2021, compared with previous guidance in the range of $1.22 to $1.28.

For the full year, the S&P Capital IQ consensus FFO-per-share estimate is $1.26.

American Homes 4 Rent noted that it recognized bad debt on 2.5% of its first-quarter rental billings, while its April collections continue to remain consistent with pandemic payment histories within the same time frame.

The REIT plans to redeem for cash all outstanding shares of its 6.500% series D perpetual preferred stock June 7 and all outstanding shares of its 6.350% series E perpetual preferred stock June 30.

Separately, the REIT said that from April 1-30, it added 214 properties to its portfolio for a total cost of about $64.5 million and sold 37 properties for net proceeds of $10.7 million.

In the same period, the company borrowed an additional $20.0 million under its revolving credit facility, leading to $100.0 million of outstanding borrowings under the revolver as of April 30.