American Homes Meets Street Forecast

American Homes 4 Rent met analyst expectations for income in the third quarter and exceeded Wall Street forecasts on revenue. The Agoura Hills single-family landlord reported funds from operations of $49.3 million (19 cents a share) for the quarter ended Sept. 30, a 28 percent increase over its reported $38.5 million (15 cents) FFO for the same period last year. Revenue grew 56 percent to $173 million. Analysts had expected funds from operations of 19 cents on revenue of $159 million, according to Thomson Financial Network. Funds from operations is a REIT metric that adds amortization and depreciation expenses into net income to get a better picture of cash flow. Although the company reported an operating loss of $28.6 million, Chief Executive David Singelyn pointed to strong leasing activity and growth in the company’s leased homes portfolio, which grew to 35,260 homes in third quarter, compared to 24,763 leased homes a year ago. “We achieved another quarter of strong leasing performance, with stabilized leased percentage at 95.4 percent,” Singelyn said in a prepared statement. Results were announced late Thursday. Shares closed Friday down 12 cents or less than 1 percent to $16.32 on the New York Stock Exchange.