American Homes 4 Rent sets $650M notes offering at 4.95%

LAS VEGAS - American Homes 4 Rent (NYSE:AMH), a real estate investment trust specializing in single-family rental homes, has priced a public offering of $650 million in senior notes with a 4.950% annual interest rate, due in 2030. The notes will be sold at 99.444% of their par value, with the first interest payment scheduled for December 15, 2025, and subsequent payments to follow semi-annually. With a market capitalization of $16.3 billion and annual revenue of $1.76 billion, AMH maintains a strong financial position, as indicated by InvestingPro data showing liquid assets exceeding short-term obligations.

The offering, subject to customary closing conditions, is expected to conclude around May 13, 2025. American Homes 4 Rent’s operating partnership plans to allocate the net proceeds toward repaying existing debts, which may include amounts from its revolving credit facility and asset-backed securitization notes from 2015. Remaining funds are earmarked for general corporate purposes such as property acquisitions, developments, and improvements. The company maintains a healthy current ratio of 1.88 and carries total debt of $4.94 billion. InvestingPro analysis reveals a "GOOD" overall Financial Health Score, with particularly strong metrics in price momentum and cash flow management.

Joint book-running managers for the offering include Wells Fargo Securities, BofA Securities, Citigroup Global Markets, and J.P. Morgan Securities, with additional book-running managers and co-managers also participating in the process.

This press release does not constitute a sale offer nor solicitation for purchase in any jurisdiction where such actions would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction. The offering is made through a prospectus and prospectus supplement, part of an effective shelf registration statement filed with the Securities and Exchange Commission (SEC).

American Homes 4 Rent owns over 61,000 single-family properties across various U.S. regions, aiming to streamline the home leasing experience for households nationwide.

Investors are cautioned regarding forward-looking statements in the press release, which are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

This article is based on a press release statement.

In other recent news, American Homes 4 Rent (AMH) reported first-quarter 2025 earnings that surpassed analysts’ expectations, with an earnings per share (EPS) of $0.30, significantly exceeding the forecasted $0.16. The company’s revenue also outperformed projections, reaching $459.28 million against an anticipated $456.37 million. Keefe, Bruyette & Woods responded by raising the price target for AMH to $40 from $38, maintaining a Market Perform rating based on the stock’s valuation. The company’s first-quarter performance showed a 3.5% year-over-year increase in same-home Net Operating Income (NOI) after capital expenditures, with average occupancy rates rising to 95.9%. AMH also reported an acceleration in average blended rent growth to 3.6% year-over-year. In April, further improvements were noted with a blended lease growth of 4.3% and an occupancy rate of 96.3%. Despite these positive developments, AMH maintained its 2025 guidance, expecting high occupancy rates throughout the year. The company continues to focus on expanding its portfolio with high-quality homes amid potential tariff impacts on development costs.

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