The transaction is based on the company's SEC filing, which provides a detailed account of the terms and conditions of the notes and the indenture agreement. This move by American Homes (NYSE:AMH) 4 Rent follows its strategy to secure long-term financing and to further invest in its portfolio of single-family rental homes. InvestingPro analysis indicates the company has maintained steady growth with revenue increasing by 6.57% over the last twelve months, while offering a dividend yield of 2.79%.
For deeper insights into AMH's financial health and growth prospects, including additional ProTips and comprehensive analysis, investors can access the full Pro Research Report on InvestingPro. InvestingPro analysis indicates the company has maintained steady growth with revenue increasing by 6.57% over the last twelve months, while offering a dividend yield of 2.79%. For deeper insights into AMH's financial health and growth prospects, including additional ProTips and comprehensive analysis, investors can access the full Pro Research Report on InvestingPro.
The newly issued notes are unsecured and rank equally with the operating partnership's current and future unsecured debt. Interest payments are scheduled semi-annually, with the first payment due on March 15, 2025. The operating partnership has the option to redeem the notes in whole or in part at any time, with the redemption price being the greater of a "make-whole" amount or 100% of the principal, plus accrued interest. This debt offering adds to the company's total debt of $4.53 billion, while maintaining a conservative debt-to-capital ratio of 0.22.
In certain circumstances, the operating partnership's subsidiaries and American Homes 4 Rent may be required to guarantee the notes, provided they guarantee the operating partnership's obligations under its revolving credit facility. The indenture includes covenants that limit the operating partnership's ability to incur additional secured and unsecured debt and to merge or sell substantially all of its assets, with several exceptions and qualifications.
The offering was made under an automatic shelf registration statement filed on June 9, 2023. These funds are expected to contribute to the company's growth strategy and to strengthen its balance sheet.
In other recent news, American Homes 4 Rent has reported significant financial results, including a 4.4% increase in year-over-year revenue and a 5.4% increase in core net operating income. The company also announced the pricing of a $500 million senior notes offering, which is due in 2035. The net proceeds from this offering will be used to repay existing debt and for general corporate purposes.
The company's development program is set to deliver 2,300 homes this year, having already acquired 1,700 homes for $480 million, with a projected 6% net operating income. Despite challenges such as hurricane impacts, American Homes 4 Rent reported net income of $73.8 million, or $0.20 per diluted share, and revised its 2024 guidance to include core funds from operations of $1.77 per share.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.