Single-home renter American Homes 4 Rent saw profit and revenue jump during the first quarter thanks to its purchase of a competitor.
For the period ended March 31, the Agoura Hills real estate investment trust reported funds from operations, a metric used by REITs to define cash flow from operations, soared 52 percent to $63.6 million (23 cents a share), compared to the same period a year ago of $41.9 million (16 cents a share). That surpassed analysts’ estimated 21 cents a share, according to Thompson Financial Network.
Revenue increased 48 percent to $195 million compared to $132 million, and ahead of analysts who estimated $188 million.
American Homes – which buys, renovates and rents single-family homes – attributed the revenue boost to its stronger leasing portfolio, which grew over the quarter from the purchase of a competitor, Scottsdale, Ariz. American Residential Properties Inc. The purchase, which closed Feb. 29, increased the REIT’s leasing portfolio by more than 16 percent to 44,455 homes.
The company reported earnings after market close on Thursday. Shares closed up 88 cents or 5.4 percent to $17.11 on the New York Stock Exchange.