AMERICAN HOMES 4 RENT BofA NY Global Real Estate Conference 2026

Sure. Just to get us going, from a high level, I would say that the business is performing really well. I think we would've all seen that in the quarter. Leasing activity has continued to remain solid. The teams are executing super well. You saw that translate into a three penny bump to the guide on a full year basis at the midpoint. We're now expecting FFO growth to be north of 4%, 4.3% actually, which continues to be at the very top of the residential pack. Since the end of the quarter, we've just put out a July and August update. It hit the website back half of last week. I would say the right takeaway there is that things are going according to plan. New leases, importantly, continue to remain in positive territory.

Moderating a touch with seasonality, just like we were expecting, from 1.6% in July to 80 basis points in August. Renewals held steady at 3.3% in both months. Occupancy was 96.1% in July, 95.9% in August. Again, kind of trending just as we were expecting it to. On the expense side of things, I think everyone has probably seen that expenses very much have been a bright spot this year. The team has done a fantastic job controlling the controllables. Property taxes for this year trending below long-term average. Latest midpoint of the guide is 2.75% growth this year. That's below long-term average, which is more like 4%-5%. Real-time update there for anyone that's familiar with how property tax information flows over the course of the year.

The end of summer, early fall is the time where we start to hear back on the results of the appeals process. I can't put any numbers to it yet, but we are starting to begin to get back some of those appeals results. Directionally, I will say that we're starting to see some results come back that feel like they're a little bit in what I would characterize as good guy territory. We still need to collect more information. Importantly, property tax rates come out later this year, fourth quarter. But by the time we report the third quarter, we should have pretty good visibility on values. Like I said, so far so good in terms of what we're seeing. Capital plan wise, nothing terribly new to report there. We continue to execute on this year's moderated development program.

Importantly, that is sized in a way that the balance sheet component is match fundable with recycled capital coming out of the disposition program. That, like we talked about at the beginning of the year, has freed up incremental capital capacity this year for other things like share repurchases as an example. I'm sure everyone saw that we were very active on share repurchases in the first 5 to 6 months of this year. Fast-forward to the middle of this year, it felt like the stock was moving in the right direction for at least a period of time. Obviously, everything has pulled back over the last week and change or so. It continues to be something very top of mind that we're watching very closely again. Then, final high level update. Since many of us would have spoken at least live last.

Obviously, the 21st Century ROAD to Housing Act has now passed. Since passing in July, the latest update is Congress has delegated it down to the respective agencies, Treasury, HUD, et cetera, for the actual detailed rule writing process, that is targeted to take place over the course of this calendar year. We'll see how much gets done by the end of this calendar year before going into effect at the beginning of 2027. Key takeaway there is that from an industry perspective, we now have pathway to clarity, which we've all been looking for. Then from an AMH perspective, I would say that the AMH strategy has probably never been more differentiated than it is currently. Considering the fact that our two primary growth channels being internal AMH development and portfolio consolidations are both protected and specifically allowed under the new law. High level wise, I'll probably pause there.

Main takeaways, like I said, business is performing well. The third quarter to date update is that things are going according to plan, and the team is hyper-focused on executing to the best of their and our ability into the balance of the year.

Just like everyone else, we're watching it very closely. For the most part for this year, any of the states that we operate in, essentially those states are out of session for this year. We're very focused at the state and local level going into 2027. Quite frankly, that's kind of business as usual for us, right? Housing ultimately is governed state and local level. As many of you know, we have invested heavily into our own government affairs team starting years ago at this point. Their day job is really focusing on educating, advocating at the state and local level. This was really the first year where we essentially redirected their efforts to the federal level. Now that Road to Housing is "behind us," they can essentially get back to their day job at the state and local level.

The simple answer is, no, nothing to call out right now, recognizing that the states that we operate within are adjourned for this year.

Sure. You probably recall, we've talked for years about the fact that there are a large number of assembled medium, small to medium-sized portfolios out there. Think of it, thousands to couple thousand unit portfolios are the sweet spot. For the last probably year or two, we've been talking about the fact that many of those portfolios are going to need liquidity at some point, and very likely could be great consolidation opportunities for us. You can use the portfolio that we consolidated in 2024 as the perfect example of what those portfolios look like. Couple thousand units. That portfolio in particular was managed by a couple of different regional property managers that operated that portfolio to the best of their ability, but below the AMH level of operational performance. Just to give you an example, when we acquired that portfolio, operating margins were call it in the mid-50s.

We brought it onto our platform, brought it up to our standards within about 12 months or so. Operating margins moved up into the mid-60s. That means that the initial in-place cap rate that we bought that portfolio at, which was a 5% to very low 5%, expanded up into the high 5%, close to 6% once brought up to our operating standards, again, creating value coming onto our platform. That's the type of opportunity that we've been talking about for the last year or 2.

My point on the impact of the new 21st Century ROAD to Housing Act is for many of those portfolios that had ambitions to get larger and have the ability to continue to grow, it's going to be much more difficult for them to do so in today's environment without access to the MLS and to be determined access to being able to buy from builders that we think will translate into, over time, increased seller motivation as they're looking to liquidate and monetize those portfolios. It's not going to happen overnight. Our best guess is over the next probably 12 to 18 months, we'll start to see some of this play out which is perfectly fine for us. Obviously, the cost of capital off the balance sheet today isn't exactly where we would want it to be for these types of portfolio consolidation opportunities.