Investor Highlights Investor Highlights September 2017
Legal Disclosures Forward-Looking Statements Various statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include projections and estimates concerning the timing and success of our strategies, plans or intentions. Forward- looking statements are generally accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “intend,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. We have based these forward-looking statements on our current expectations and assumptions about future events. These assumptions include, among others, our projections and expectations regarding: market trends in the single-family home rental industry and in the local markets where we operate, our ability to institutionalize a historically fragmented business model, our business strengths, our ideal tenant profile, the quality and location of our properties in attractive neighborhoods, the scale advantage of our national platform and the superiority of our operational infrastructure, the effectiveness of our investment philosophy and diversified acquisition strategy, our ability to grow our portfolio and to create a cash flow opportunity with attractive current yields and upside from increasing rents and cost efficiencies and our understanding of our competition and general economic, demographic and real estate conditions that may impact our business. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially from any future results, performance or achievements expressed or implied by these forward- looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, September 11, 2017. We undertake no obligation to update any forward-looking statements to conform to actual results or changes in our expectations, unless required by applicable law. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward- looking statements, as well as risks relating to the business of the Company in general, see the “Risk Factors” disclosed in the Company’s Annual Report for the year ended December 31, 2016 and the Company’s subsequent filings with the Securities and Exchange Comm ission. Non-GAAP Financial Measures This presentation includes certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (GAAP) because we believe they help investors understand our performance. Any non-GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by U.S. GAAP and may not be comparable to the calculation of similar measures of other companies. 2
Table of Contents AMH At A Glance ……………………………………………………….................. 4 AMH Strategy …………………………………………………………..................... 5 Single-family Rental Sector: Compelling Macro Landscape …... 6 Growth Strategy - How & Where We Invest ……………................... 7-10 Foreclosure Auction/MLS • Built for Rental Program • Bulk/Portfolio Opportunities • Where We Invest • AMH Operating Approach …………………………………………………....... 11 Financial Results …………………………......................................................... 12-15 Defined Terms ……………………………………………………………………....... 16 Atlanta, GA 3
AMH At A Glance Only Investment 48,000 high- 10.0% TTM avg. ~ $220 million of Grade Rated quality properties Same Store NOI expected annual in 22 states (1) balance sheet in after Capex retained cash flow SFR sector growth (2) ~ 1000 employees , $10.7 billion total of which over 700 Phoenix, AZ market are field based or capitalization (1) delivering customer Average property service age of 14 years Best-in-class call center and 95.2% total proprietary Boise, ID portfolio leased (1) Net debt to TTM technology Adjusted EBITDA of 4.8x (1) (1) As of or for the quarter ended June 30, 2017. (2) Year-over-year percentage growth comparisons based on quarterly same- home populations presented in the Company’s supplemental for the respective period. 4
The AMH Strategy Optimize AMH’s differentiated operating platform • OPERATIONS Balance centralized control and oversight, with local office touch • STRATEGY Enhance operating efficiencies with innovative and proprietary technology solutions • Management and execution of all stages of operational lifecycle with AMH internal personnel • + Invest in AMH’s high growth markets and well diversified portfolio footprint • Focus on high quality properties in desirable neighborhoods and highly rated school districts to attract ideal tenant profile: • GROWTH (1) high credit quality, (2) propensity to stay longer and (3) mentality to care for property as their “home” STRATEGY Expand foreclosure auction / MLS acquisition program to take advantage of accretive external growth landscape • Supplement acquisition program with “built for rental” product from National Builder Program and AMH Development • + Utilize investment grade cost of capital advantage over SFR peers • BALANCE SHEET Maintain flexible and conservative balance sheet, while optimizing capital stack • STRATEGY Accretively reinvest retained cash flow into external growth initiatives • = 27% total shareholder return in 2016 while deleveraging and strengthening balance sheet • Industry leading cash flow margins and long-term operating advantage • SHAREHOLDER VALUE Outsized same-home Core NOI after Capex growth of 12.1% and 8.2% for FY 2016 and YTD June 2017, respectively • Alignment of interests with AMH founder and senior management who hold approximately $1.9 billion of equity • ownership (1) (1) Based on closing stock price of $22.57 on June 30, 2017. Common equity includes common shares and operating partnership units that are convertible into common shares. 5
Compelling Macro Landscape Household Formations Outpace Housing Supply (1) Substantial Growth In Renter Household Demand (2) 2.0 44.0 Renter Households (in millions) (In millions) 42.0 1.5 40.0 38.0 1.0 36.0 34.0 0.5 32.0 30.0 0.0 1980 1985 1990 1995 2000 2005 2010 2015 2000 2005 2010 2015 Multi Family Starts Single Family Starts Long Term Average Household Formation Rate Homeownership Decline Supports Rental Demand (2) Total Housing Stock (2) 90% 80% Apartments & Other Rentals 78% 31% / ~ 43.1M units 75% 70% 69% 60% Owner Occupied 59% Non-Institutional 55% / ~ 75.7M units Single-Family Rentals 50% 13% / ~ 15.0M units 40% 35% Institutional 30% Single-Family Rentals 2000 2002 2004 2006 2008 2010 2012 2014 2016 1% / ~ 1.0M units Under 35 35 - 44 45 - 54 55 - 64 65+ Accelerating demand for single-family rental housing supported by fundamental shifts in demographics and consumer preferences (1) Federal Reserve Bank of St. Louis Economic Data and U.S. Census Bureau. (2) U.S. Census Bureau 2Q17. 6
How we Invest – Foreclosure Auction/MLS Program Overview Acquisition opportunities remain robust and AMH is uniquely Fully internalized acquisition program – AMH personnel • positioned with the most experienced internal acquisition team in underwrite and inspect all homes acquired through the single-family rental industry. Since inception, AMH has: foreclosure auction & MLS Operational insights from internal property management help • to “sharp shoot” optimal target properties Screened over 1 million homes National renovation program generates substantial scale • discounts Underwritten 35% of homes screened Program Benefits & Return Profile Create value through discount to replacement cost & • renovations Perform physical, title and Additional scale leverages AMH’s highly efficient operating • HOA due diligence platform 5% to 6% economic yields after capital expenditures • Placed bids on ~25% of homes underwritten Future Outlook 3Q17 – 1,000 homes or $200 million+ • Purchased 4Q17 – 1,250 homes or $250 million+ • ~50,000 (1) homes 2018 – expect two-thirds of $1 billion+ acquisition program to • be auction / MLS purchases (1) Reflects total homes purchased through all acquisition channels since inception. 7
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