American Homes Beats Expectations, Gets Acquisition Approval

Agoura Hills’ single-family home rental company, American Homes 4 Rent, met analysts’ fourth-quarter earnings expectations and received word that an acquisition target’s shareholders approved the deal. For the quarter that ended Dec. 31, American Homes reported funds from operations of $53.8 million (21 cents a share) compared to $42 million (16 cents a share). Analysts expected 21 cents a share. Revenues jumped 47 percent to $173 million on a larger lease portfolio. Analysts expected $175.9 million. Full-year funds from operations were $190 million (72 cents a share) compared to $144 million (57 cents a share). Analysts expected 73 cents a share. Revenues jumped more than 58 percent to $631 million. In December, American Homes and Scottsdale, Ariz. American Residential Properties Inc., agreed to a deal valued at $1.5 billion in which American Homes would acquire American Residential. American Residential is a real estate investment trust that acquires, owns and manages single-family homes as rental properties. On Friday, American Residential announced its stockholders approved the stock-for-stock deal. The transaction is expected to close Feb. 29 but is subject to closing conditions. American Home shares closed up 21 cents or 1.5 percent to $14.21 on the New York Stock Exchange.