2023-08-14 13:38:33 ET
American Homes 4 Rent ( NYSE: AMH ) was added as a new long idea at Hedgeye.
"From where we sit, we believe all-in NOI, Core FFO and AFFO growth is "troughing" out this quarter or potentially in 4Q, meaning the RoC is set to accelerate from here into FY24," Hedgeye analyst Rob Simone wrote in a note on Monday.
Hedgeye also likes AMH's limited exposure to the California market, which "ring fences" off any bad debt issues or long-term political risk from the state.
"From a valuation perspective, we underwrite AMH's portfolio to a ~7.5% unlevered IRR inclusive of +4-4.5% compounded NOI growth, a ~15% replacement capex reserve and ~$1.6 billion or ~$4/share of gross warehoused land value (vs. ~$1.3 billion carried on the balance sheet)," Simone added.
Earlier this month, American Homes 4 Rent ( AMH ) declared a $0.22 dividend.
More on American Homes 4 Rent
- American Homes 4 Rent: Not The Right Time In The Cycle
- American Homes 4 Rent Is A High-Quality REIT But Wait For A Lower Entry Point
- American Homes 4 Rent added to best ideas long list at Hedgeye
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American Homes 4 Rent a new long idea at Hedgeye