AMH Announces 18% Increase in Quarterly Distribution

Rhea-AI Summary

AMH (NYSE: AMH) declares a dividend increase of 18% to $0.26 per share for the first quarter of 2024. The distribution will be payable on March 28, 2024, to shareholders of record on March 15, 2024.

Financial Analyst

The announcement of AMH's dividend increase to $0.26 per common share, up from $0.22, signifies a substantial 18 percent raise in shareholder returns. This move can be interpreted as a signal of strong financial health and confidence by the company's management in its cash flow stability and future earnings. Investors often view such increases as a positive indicator of a company's profitability and a commitment to returning value to shareholders.

From a financial standpoint, the key metrics to consider would be the payout ratio and yield. The payout ratio will determine the sustainability of the dividend, especially in the context of the company's earnings. A payout ratio that is too high could signal potential cash flow issues in the future. However, if the company has a track record of stable earnings and free cash flow, the increased dividend might be well-covered.

Furthermore, the dividend yield, calculated as annual dividends per share divided by the stock price, will shift upward, making the stock potentially more attractive to income-focused investors. The market will likely react to this news in the short term, with potential positive impacts on the stock price as it becomes a more appealing investment for dividend hunters.

Market Research Analyst

Examining the broader market implications, the increase in dividend payout by AMH could be a reflection of the single-family rental home industry's resilience and growth. Amidst various economic conditions, such as interest rate fluctuations and housing market dynamics, a company in this sector declaring a significant dividend increase suggests a robust demand for rental homes and efficient operational management.

It is essential to consider the competitive landscape and how AMH's dividend increase positions it relative to peers. If the dividend hike is above the industry average, it could potentially attract more investors to AMH's stock, thereby increasing its market capitalization and shareholder base. On the flip side, it raises the question of whether competitors will follow suit to maintain their attractiveness to investors, possibly leading to a shift in investment within the sector.

Long-term, this strategic move might be indicative of AMH's plans for capital allocation. It suggests a prioritization of direct shareholder returns over reinvestment or debt reduction strategies, which could influence the company's growth trajectory and financial leverage.

Real Estate Investment Trust (REIT) Specialist

As a company operating as a large-scale integrated owner, operator and developer of single-family rental homes, AMH's dividend increase could be reflective of the sector-specific characteristics of Real Estate Investment Trusts (REITs). REITs are required to distribute at least 90% of their taxable income to shareholders and this dividend hike might suggest that AMH has seen a considerable increase in its taxable income, potentially from higher occupancy rates, rent increases, or efficient property management.

Investors should consider the fundamentals of REITs, such as Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO), which are better indicators of a REIT's performance than traditional earnings metrics. An increase in these figures could substantiate the dividend increase and provide a clearer picture of the company's operational efficiency and financial health.

Additionally, the declaration of dividends on preferred shares indicates a commitment to fulfilling obligations to preferred shareholders, who typically have fixed dividend rates. The rates declared on the Series G and H shares align with their respective coupon rates, reinforcing the company's reliability in meeting its preferred dividend commitments.

LAS VEGAS, Feb. 21, 2024 /PRNewswire/ -- AMH (NYSE: AMH) (the "Company"), a leading large-scale integrated owner, operator and developer of single-family rental homes, today announced that the Board of Trustees declared a dividend of $0.26 per share on the Company's common shares for the first quarter of 2024. This represents an increase of 18 percent versus the prior quarterly dividend rate of $0.22 per share. The distribution will be payable in cash on March 28, 2024 to shareholders of record on March 15, 2024.

The Board of Trustees also declared a per share quarterly distribution on the Company's cumulative redeemable perpetual preferred shares of $0.36719 per share on the 5.875% Series G shares and $0.39063 per share on the 6.250% Series H shares payable in cash on March 28, 2024 to shareholders of record on March 15, 2024.

About AMH

AMH (NYSE: AMH) is a leading large-scale integrated owner, operator and developer of single-family rental homes. We're an internally managed Maryland real estate investment trust (REIT) focused on acquiring, developing, renovating, leasing and managing homes as rental properties. Our goal is to simplify the experience of leasing a home and deliver peace of mind to households across the country.

In recent years, we've been named one of Fortune's 2023 Best Workplaces in Real Estate™, a 2023 Great Place to Work®, a 2023 Most Loved Workplace®, a 2023 Top U.S. Homebuilder by Builder100, and one of America's Most Responsible Companies 2023 and America's Most Trustworthy Companies 2023 by Newsweek and Statista Inc. As of September 30, 2023, we owned over 59,000 single-family properties in the Southeast, Midwest, Southwest and Mountain West regions of the United States. Additional information about AMH is available on our website at www.amh.com.

AMH refers to one or more of American Homes 4 Rent, American Homes 4 Rent, L.P. and their subsidiaries and joint ventures. In certain states, we operate under AMH Living or American Homes 4 Rent. Please see www.amh.com/dba to learn more.

Forward-Looking Statements

This press release contains "forward-looking statements" that relate to beliefs, expectations or intentions and similar statements concerning matters that are not of historical fact and are generally accompanied by words such as "believe," "expect," "will," "intend," "anticipate" or other words that convey the uncertainty of future events or outcomes. These forward-looking statements include the payment and anticipated timing of the payment of distributions of the Company's common and preferred shares. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company's management considers these expectations to be reasonable, they are inherently subject to risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control and could adversely affect our cash flows and ability to pay distributions. Additional information about these and other important factors that may cause our actual results to differ materially from anticipated results expressed or implied by these forward-looking statements is available in the Company's most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement to conform to actual results or changes in expectations, except as required by applicable law.

AMH Contacts

Trent Frager
Media Relations
Phone: (855) 774-4663
Email: media@amh.com 

Nicholas Fromm
Investor Relations
Phone: (855) 794-2447
Email: investors@amh.com 

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SOURCE AMH

What is the dividend amount declared by AMH for the first quarter of 2024?

AMH declared a dividend of $0.26 per share for the first quarter of 2024.

When will the dividend be payable to shareholders?

The dividend will be payable in cash on March 28, 2024, to shareholders of record on March 15, 2024.

What is the percentage increase in the dividend rate compared to the prior quarterly dividend?

The dividend rate increased by 18% compared to the prior quarterly dividend rate of $0.22 per share.

What are the per share quarterly distributions declared on the Company's preferred shares?

The per share quarterly distributions on the Company's preferred shares are $0.36719 per share on the 5.875% Series G shares and $0.39063 per share on the 6.250% Series H shares.

When will the per share quarterly distributions on the preferred shares be payable?

The per share quarterly distributions on the preferred shares will be payable in cash on March 28, 2024, to shareholders of record on March 15, 2024.