American Homes 4 Rent's Q1 2025 Earnings Call: Unraveling Contradictions in Merger Progress, Rent Strategy, and Market Dynamics

Merger with Invitation Homes, occupancy and rent growth strategy, lease movement trends, impact of public builders on SFR pricing and competition, and focus on high-quality assets in acquisition strategy are the key contradictions discussed in American Homes 4 Rent's latest 2025Q1 earnings call.



Strong First Quarter Performance and Demand Trends:
- AMH reported core FFO per share of $0.46 for Q1 2025, representing 6.6% year-over-year growth, with same-home core revenue growth of 4.3%.
- The growth was driven by strong leasing demand, particularly in the Midwest markets, and strategic alignment of lease expirations with the peak leasing season.

Development and Investment Program:
- AMH's development program delivered 424 homes to its wholly-owned portfolio, with an investment cost of approximately $173 million.
- The company expects initial yields from these deliveries to be in the low 5% area, averaging to the mid-5% range for 2025.
- Growth in development yields is anticipated as the market enters the peak leasing season, driven by strategic location and quality of developed homes.

Acquisition and Disposition Strategy:
- AMH leaned into its disposition program, selling 416 properties in Q1, generating approximately $135 million in net proceeds, with an average economic disposition yield of 3%.
- This strategy aligns with AMH's focus on maintaining an investment-grade balance sheet and geographic diversification.

Cost Management and Tariff Impact:
- The company anticipates minimal impact from tariffs on development costs, estimating an effect of 2% to 3% on home costs for the total home basis.
- Most materials subject to tariffs represent a small portion of costs, mitigated by labor and vertical costs not subject to tariffs.