American Residential Properties Inc
American Residential Properties — Investor Presentation (September 2015)
36 slides from American Residential Properties's investor presentation, Sep 10, 2015
Slide 1: American Residential Properties, Inc. Company Presentation September 2015
AMERICAN RESIDENTIAL PROPERTIES, INC. COMPANY PRESENTATION SEPTEMBER 2015
Slide 2: Disclaimer and Cautionary Note Regarding Forward-Looking Statements
EPS\Management Presentation\American Residential Properties - 602505097 DISCLAIMER AND CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The information in this presentation has been prepared solely for informational purposes and does not constitute an offer to sell or the solicitation of an offe
Slide 3: A Single-Family Rental Pioneer
EPS\Management Presentation\American Residential Properties - 602505097 A SINGLE-FAMILY RENTAL PIONEER 3
Slide 4: Who Is American Residential Properties, Inc.?
EPS\Management Presentation\American Residential Properties - 602505097 WHO IS AMERICAN RESIDENTIAL PROPERTIES, INC.? An Experienced, Internally Managed Single-Family Rental Company with a National Footprint (1) Deutsche Bank, JP Morgan, Citibank, BAML, Morgan Stanley, Key Bank, Barclay’s, Raymond J
Slide 5: What Is Our Strategy?
EPS\Management Presentation\American Residential Properties - 602505097 WHAT IS OUR STRATEGY? An Experienced, Internally Managed Single-Family Rental Company with a National Footprint A company with leadership, experience & a fully integrated operating platform – well-positioned to expand its portfo
Slide 6: Who Runs & Oversees the Company?
EPS\Management Presentation\American Residential Properties - 602505097 WHO RUNS & OVERSEES THE COMPANY? Experienced Senior Management & Independent Directors Experienced Senior Management Team Real Estate Experience Stephen Schmitz Laurie Hawkes Shant Koumriqian Lani Porter Patricia Dietz Chairman
Slide 7: How Did We Build the Company?
EPS\Management Presentation\American Residential Properties - 602505097 HOW DID WE BUILD THE COMPANY? Contributed operating & property management platform Raised $371MM of equity in two Rule 144A offerings to institutional investors Expanded operations into ten states Raised $287MM of equity
Slide 8: Recent Developments: Q2 '15 Update
EPS\Management Presentation\American Residential Properties - 602505097 RECENT DEVELOPMENTS: Q2 ‘15 UPDATE 8 Increased portfolio leased rate to 93.6%, up 4.6% from Q1’15, for a total increase of 12.9% since Q4,‘14 Continued to drive strong rent growth • Attained average increase of 4.7% on newly
Slide 9: An Experienced Operating Company
EPS\Management Presentation\American Residential Properties - 602505097 AN EXPERIENCED OPERATING COMPANY 9
Slide 10: Where Do We Own Properties?
EPS\Management Presentation\American Residential Properties - 602505097 WHERE DO WE OWN PROPERTIES? Homes Owned 8,947 States 13 Average Age 17 years Average Size 1,826 sq. ft. Average Investment $150,558 Average Monthly Rent(2) $1,297 Total Occupancy 94% Stabilized Occupancy(3) 94% Markets with Job
Slide 11: What Is Our Organizational Structure?
EPS\Management Presentation\American Residential Properties - 602505097 WHAT IS OUR ORGANIZATIONAL STRUCTURE? Market Evaluation Sourcing Management Underwriting Pricing Closing Utilize network of external agents nationwide ACQUISITIONS & SOURCING Property Management − Renovations, Re-t
Slide 12: How Do We Select Markets?
EPS\Management Presentation\American Residential Properties - 602505097 HOW DO WE SELECT MARKETS? Our market strategy balances strong economic fundamentals, rent growth, HPA potential & discount to replacement cost to generate attractive risk-adjusted returns AVERAGE ANNUAL EMPLOYMENT GROWTH(1) (201
Slide 13: How Do We Acquire Properties?
EPS\Management Presentation\American Residential Properties - 602505097 HOW DO WE ACQUIRE PROPERTIES? Disciplined Acquisition Platform Utilizing Market Knowledge and Technology School scores / educational attainment levels Low crime index Attractive rental fundamentals / family-friendliness me
Slide 14: What Is Our Acquisition Criteria?
EPS\Management Presentation\American Residential Properties - 602505097 WHAT IS OUR ACQUISITION CRITERIA? We Seek Significant Discounts to Replacement Cost 14 $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 ARPI DISCOUNT TO REPLACEMENT COST BY MARKET(1)(2) RS Means 2014 Replacement
Slide 15: How Much Have Home Prices Appreciated?
EPS\Management Presentation\American Residential Properties - 602505097 HOW MUCH HAVE HOME PRICES APPRECIATED? Uneven Recovery has Created Opportunities to Buy at a Discount in Select Markets 15 Source for HPA: FHFA Purchase-Only & All Transactions Index as of June 30, 2015 See Supplemental Notes he
Slide 16: How Do We Restore & Maintain Properties?
EPS\Management Presentation\American Residential Properties - 602505097 HOW DO WE RESTORE & MAINTAIN PROPERTIES? • Electronic access management • Project evaluation, pricing & project management via mobile applications • Vendor qualifications & quality assurance programs • In-house 24/7 Resident Ser
Slide 17: How Do We Select Vendors & Maintain Quality?
EPS\Management Presentation\American Residential Properties - 602505097 HOW DO WE SELECT VENDORS & MAINTAIN QUALITY? ARP Vendor Qualifications & Quality Assurance Program Building State-of-the-Art Services and Successful Partnerships while Leveraging Technology to Support Sustained Growth • Retain q
Slide 18: What Is Our Marketing & Branding Strategy?
EPS\Management Presentation\American Residential Properties - 602505097 COMMUNICATIONS • Resident Orientation Manual for Home Operation & Maintenance • Surveys for New Move-in, Maintenance Request Follow-up & Move-out • Monthly “Welcome Home” Resident newsletter • Broker Communications Blast (social
Slide 19: What Rent Increases Have We Achieved?
EPS\Management Presentation\American Residential Properties - 602505097 WHAT RENT INCREASES HAVE WE ACHIEVED? Average of 3.7% Rent Increases on Lease Renewals in Q2 2015 and 4.7% on Lease Turns while Maintaining 75% Resident Retention Renewals New Leases Market # of Renewals Average % Rent Increase
Slide 20: Sample Profile of ARPI Residents
EPS\Management Presentation\American Residential Properties - 602505097 Average tenure at current job is six years Typically two-income household Average head of household is in late 30s Average of two children per household Rental rate as percentage of household income approximately 19.7%
Slide 21: What Are the Opportunities for Future Growth?
EPS\Management Presentation\American Residential Properties - 602505097 WHAT ARE THE OPPORTUNITIES FOR FUTURE GROWTH? Robust Investment Pipeline, Growing Rental Demand & Potential Housing Shortage • Foreclosure inventory- Over 3.8 MM non-performing mortgages (1) • Consolidation - Sub-scale SFR opera
Slide 22: Financial Overview
EPS\Management Presentation\American Residential Properties - 602505097 FINANCIAL OVERVIEW 22
Slide 23: How Did We Perform During 2014?
EPS\Management Presentation\American Residential Properties - 602505097 HOW DID WE PERFORM DURING 2014? Increased total revenue by 129% to $87 million during FYE 2014 compared to FYE 2013. Achieved Core FFO attributable to common stockholders of $12.4 million, or $0.38 per diluted share in FYE 2
Slide 24: How Did We Perform in the Second Quarter 2015?
EPS\Management Presentation\American Residential Properties - 602505097 HOW DID WE PERFORM IN THE SECOND QUARTER 2015? Declared Q2 dividend of $0.10 per common share. Achieved Core FFO attributable to common stockholders of $5.4 million, or $0.16 per diluted share, an increase of $0.9 million, o
Slide 25: What Is Our Capital Structure?
EPS\Management Presentation\American Residential Properties - 602505097 WHAT IS OUR CAPITAL STRUCTURE? Flexible Capital Structure Adequate liquidity to finance operations (1) Based on 33.5 million shares, including RSUs, OP units, LTIP units (vested and unvested) and a $16.50 closing price on Au
Slide 26: American Residential Properties, Inc.
EPS\Management Presentation\American Residential Properties - 602505097 AMERICAN RESIDENTIAL PROPERTIES, INC. ________________________________________________ Note: Properties pictured throughout the presentation are sample properties included in the ARPI’s portfolio, but not necessarily representat
Slide 27: ARPI Investment Thesis
EPS\Management Presentation\American Residential Properties - 602505097 ARPI INVESTMENT THESIS 27 Compelling demographics driving SFR demand Strong position in robust core markets Focused strategy for accelerating organic growth Demand driving occupancy and rental increases Flexible capital structur
Slide 28: Appendix
EPS\Management Presentation\American Residential Properties - 602505097 APPENDIX 28
Slide 29: Strategically Acquired Portfolio
EPS\Management Presentation\American Residential Properties - 602505097 STRATEGICALLY ACQUIRED PORTFOLIO See Supplemental Notes hereto for footnote references above 29 Total Portfolio of Single-Family Homes Leased Homes MSA/Metro Division Number of Homes Average Purchase Price Per Home(1) Average Ca
Slide 30: Strategically Acquired Portfolio: Stabilized Homes
EPS\Management Presentation\American Residential Properties - 602505097 STRATEGICALLY ACQUIRED PORTFOLIO See Supplemental Notes hereto for footnote references above 30 Portfolio of Stabilized (1) Single-Family Homes - June 30, 2015 (unaudited) MSA/Metro Division Number of Homes Average Investment Pe
Slide 31: Profile of the Portfolio by Geographic Distribution
EPS\Management Presentation\American Residential Properties - 602505097 WHAT IS THE PROFILE OF THE PORTFOLIO BY GEOGRAPHIC DISTRIBUTION? 31 Phoenix, AZ $199,017 15% Dallas-Fort Worth, TX $186,476 14% Houston, TX $165,651 12% Atlanta, GA $162,536 12% Nashville, TN $149,382 11% Florida $88,400 7% Othe
Slide 32: Balance Sheet
EPS\Management Presentation\American Residential Properties - 602505097 BALANCE SHEET 32 Consolidated Balance Sheet (amounts in thousands) June 30, 2015 (unaudited) December 31, 2014 Assets Investment in real estate: Land $ 252,181 $ 249,151 Building and improvements 1,073,983 1,042,954 Furniture, f
Slide 33: Statement of Operations
EPS\Management Presentation\American Residential Properties - 602505097 STATEMENT OF OPERATIONS 33 Condensed Consolidated Statement of Operations Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue: Self-managed rental revenue $ 28,803 $ 18,178 $ 54,092 $ 32,740 Local o
Slide 34: Net Loss to FFO Reconciliation
EPS\Management Presentation\American Residential Properties - 602505097 NET LOSS TO FFO RECONCILIATION 34 The following is a reconciliation of net income (loss) (which we believe is the most comparable GAAP measure) to funds from operations, or FFO. Also presented is information regarding the weight
Slide 35: FFO & Core FFO Reconciliation
EPS\Management Presentation\American Residential Properties - 602505097 FFO & CORE FFO RECONCILIATION 35 Reconciliation to FFO & Core FFO The following is a reconciliation of funds from operations (FFO) to Core FFO. Also presented is information regarding the weighted-average number of shares of our
Slide 36: Supplemental Notes
EPS\Management Presentation\American Residential Properties - 602505097 SUPPLEMENTAL NOTES 36 Page 7 | Focus on Markets with Strong Macro- and Micro-Economic Fundamentals (1) Represents 2015 to 2018 projections per John Burns Real Estate Consulting estimates (May 2015). Annual averages represent 4-y
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