Rental home operator AMH's Q3 core FFO per share up; lifts FY outlook

Overview

• US single-family rental home operator's Q3 rents and property revenues grew 4.1% yr/yr

• Core FFO per share rose 7.4% yr/yr in Q3

• Net income fell yr/yr, mainly due to lower gains on property sales and other income

Outlook

• AMH raises full-year 2026 Core FFO guidance midpoint to $1.97 per share and unit

• Company expects full-year 2026 Core FFO between $1.96 and $1.98 per share and unit

• AMH anticipates full-year Same-Home Core revenues growth of 1.9% to 2.9%

Result Drivers

• RENTAL RATE INCREASES - Co said higher rental rates were the main driver of revenue growth in Q3

• OPERATING COST PRESSURES - Higher repairs, maintenance and turnover costs increased Same-Home property operating expenses

• LOWER PROPERTY SALE GAINS - Lower net gains on property sales and other income weighed on net income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for American Homes 4 Rent is $37.00, about 17.4% above its November 3 closing price of $31.52

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 42 three months ago

Reuters Recommended Reads

• Nov 2 - AH Realty Trust raises 2026 outlook

• Nov 2 - Independence Realty Trust Q3 adjusted EBITDA beats estimates; reaffirms FY guidance

• Nov 2 - Realty Income's Q3 revenue beats; raises 2026 AFFO per share outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)