The following discussion of our financial condition and results of operations
should be read in conjunction with the financial statements and related notes
appearing elsewhere in this Quarterly Report on Form 10-Q.

Overview



  We are a Maryland REIT focused on acquiring, developing, renovating, leasing
and operating single-family homes as rental properties. The Operating
Partnership is the entity through which we conduct substantially all of our
business and own, directly or through subsidiaries, substantially all of our
assets. We commenced operations in November 2012.

  As of March 31, 2021, we owned 53,984 single-family properties in selected
sub-markets of metropolitan statistical areas ("MSAs") in 22 states, including
636 properties held for sale, compared to 53,584 single-family properties in 22
states, including 711 properties held for sale, as of December 31, 2020, and
52,776 single-family properties in 22 states, including 960 properties held for
sale as of March 31, 2020. As of March 31, 2021, 52,025, or 97.5%, of our total
properties (excluding properties held for sale) were occupied, compared to
51,271, or 97.0%, of our total properties (excluding properties held for sale)
as of December 31, 2020, and 49,029, or 94.6%, of our total properties
(excluding properties held for sale) as of March 31, 2020. Also, as of March 31,
2021, the Company had an additional 1,383 properties held in unconsolidated
joint ventures, compared to 1,293 properties held in unconsolidated joint
ventures as of December 31, 2020, and 876 properties held in unconsolidated
joint ventures as of March 31, 2020. Our portfolio of single-family properties,
including those held in our unconsolidated joint ventures, is internally managed
through our proprietary property management platform.

COVID-19 Business Update



  The Company has maintained continuity in business operations since the
beginning of the COVID-19 pandemic and produced strong operating results in the
first quarter of 2021 demonstrating the flexibility of its technology enabled
operating platform and the resiliency of its high-quality, diversified
portfolio. Comprehensive remote working policies remain in place for most
corporate and field offices, and operational protocols have been tailored based
on state and local mandates to ensure continuity of services, while protecting
employees, residents and their families.

  Collections have continued to remain resilient throughout the pandemic with
the Company recognizing bad debt on 2.5% of its first quarter 2021 rental
billings. Additionally, collections of April 2021 rental billings continue to
remain consistent with pandemic payment histories within the same time frame.

  Although the Company has produced strong operating results to date during the
COVID-19 pandemic, the extent to which the pandemic will ultimately impact us
and our residents will depend on future developments which are highly uncertain.
These include the scope, severity and duration of the pandemic, including
resurgences, new variants or strains, impact of government regulations, the
speed and effectiveness of vaccine distribution, vaccine adoption rates and the
direct and indirect economic effects of the pandemic and containment measures,
among others.

  For more information on risks related to COVID-19, see Part I, "Item 1A. Risk
Factors-Risks Related to Our Business-We are subject to risks from the global
pandemic associated with COVID-19 and we may in the future be subject to risks
from other public health crises" in our 2020 Annual Report.


                                       28
--------------------------------------------------------------------------------

Key Single-Family Property and Leasing Metrics

The following table summarizes certain key single-family properties metrics as of March 31, 2021:



                                            Number of                 % of Total               Gross Book                                Avg. Gross Book
                                          Single-Family              Single-Family                Value            % of Gross Book          Value per               Avg.            Avg. Property Age               Avg. Year
Market                                    Properties (1)              Properties               (millions)            Value Total            Property              Sq. Ft.                (years)              Purchased or Delivered
 Atlanta, GA                                  5,077                             9.5  %       $      951.5                   9.4  %       $    187,415              2,163                         17.3                             

2015

Dallas-Fort Worth, TX                        4,317                             8.1  %              723.7                   7.1  %            167,630              2,118                         16.9                             2014
 Charlotte, NC                                3,822                             7.2  %              761.2                   7.5  %            199,157              2,099                         16.4                             2015
 Phoenix, AZ                                  3,171                             5.9  %              575.4                   5.7  %            181,465              1,838                         17.4                             2015
 Houston, TX                                  2,955                             5.5  %              492.8                   4.8  %            166,762              2,097                         15.2                             2014
 Nashville, TN                                2,941                             5.5  %              646.8                   6.4  %            219,924              2,108                         15.2                             2015
 Indianapolis, IN                             2,820                             5.3  %              441.0                   4.3  %            156,384              1,928                         18.4                             2013
 Tampa, FL                                    2,496                             4.7  %              511.4                   5.0  %            204,872              1,946                         14.6                             2015
 Jacksonville, FL                             2,486                             4.7  %              463.3                   4.6  %            186,381              1,937                         14.6                             2015
 Raleigh, NC                                  2,128                             4.0  %              400.3                   3.9  %            188,121              1,878                         15.6                             2015
 Columbus, OH                                 2,067                             3.9  %              364.8                   3.6  %            176,505              1,870                         19.1                             2015
 Cincinnati, OH                               1,998                             3.7  %              357.3                   3.5  %            178,816              1,851                         18.6                             2014
 Orlando, FL                                  1,769                             3.3  %              333.4                   3.3  %            188,449              1,904                         18.4                             2015
 Greater Chicago area, IL and IN              1,727                             3.2  %              318.9                   3.1  %            184,667              1,869                         19.6                             2013
 Salt Lake City, UT                           1,610                             3.0  %              422.1                   4.2  %            262,185              2,182                         17.0                             2015
 Charleston, SC                               1,270                             2.4  %              262.3                   2.6  %            206,515              1,975                         12.3                             2016
 Las Vegas, NV                                1,187                             2.2  %              233.1                   2.3  %            196,363              1,858                         16.0                             2014
 Austin, TX                                     967                             1.8  %              192.9                   1.9  %            199,476              1,891                         11.2                             2015
 San Antonio, TX                                946                             1.8  %              156.0                   1.5  %            164,931              2,024                         16.6                             2014
 Savannah/Hilton Head, SC                       917                             1.7  %              168.9                   1.7  %            184,219              1,871                         13.1                             2016
All Other (2)                                 6,677                            12.6  %            1,385.6                  13.6  %            207,515              1,901                         16.9                             2015
Total/Average                                53,348                           100.0  %       $   10,162.7                 100.0  %       $    190,498              1,987                         16.6                             2015


(1)Excludes 636 single-family properties held for sale as of March 31, 2021. (2)Represents 15 markets in 13 states.


                                       29
--------------------------------------------------------------------------------

  The following table summarizes certain key leasing metrics as of March 31,
2021:

                                                                                    Total Single-Family Properties (1)
                                                                          Avg. Monthly           Avg. Original        Avg. Remaining          Avg. Blended
                                               Avg. Occupied Days       Realized Rent per         Lease Term            Lease Term             Change in
Market                                           Percentage (2)           property (3)           (months) (4)          (months) (4)             Rent (5)
Atlanta, GA                                               97.3  %       $        1,714                12.0                   5.7                      7.8  %
Dallas-Fort Worth, TX                                     97.1  %                1,837                12.1                   6.0                      5.6  %
Charlotte, NC                                             97.2  %                1,692                12.4                   5.8                      6.5  %
Phoenix, AZ                                               97.8  %                1,583                12.3                   6.2                     12.2  %
Houston, TX                                               96.1  %                1,712                12.4                   5.7                      4.0  %
Nashville, TN                                             95.7  %                1,819                12.0                   6.0                      5.5  %
Indianapolis, IN                                          97.2  %                1,514                12.0                   5.9                      7.9  %
Tampa, FL                                                 98.1  %                1,794                12.0                   5.8                      6.6  %
Jacksonville, FL                                          97.3  %                1,672                12.0                   6.2                      7.1  %
Raleigh, NC                                               96.6  %                1,614                12.3                   6.1                      5.6  %
Columbus, OH                                              97.8  %                1,742                12.0                   6.1                      7.5  %
Cincinnati, OH                                            96.7  %                1,695                11.9                   6.3                      6.9  %
Orlando, FL                                               95.9  %                1,776                12.1                   6.3                      5.1  %
Greater Chicago area, IL and IN                           97.6  %                1,955                12.3                   6.2                      6.6  %
Salt Lake City, UT                                        98.0  %                1,890                12.1                   6.0                      7.8  %
Charleston, SC                                            97.0  %                1,803                12.0                   6.1                      6.7  %
Las Vegas, NV                                             96.8  %                1,709                12.0                   6.7                      8.0  %
Austin, TX                                                96.2  %                1,745                12.1                   5.9                      5.8  %
San Antonio, TX                                           96.5  %                1,608                12.1                   6.3                      5.1  %
Savannah/Hilton Head, SC                                  98.6  %                1,646                12.1                   5.7                      6.5  %
All Other (6)                                             97.2  %                1,776                12.1                   6.1                      7.1  %
Total/Average                                             97.1  %       $        1,730                12.1                   6.0                      6.9  %



(1)Leasing information excludes 636 single-family properties held for sale as of
March 31, 2021.
(2)For the three months ended March 31, 2021, Average Occupied Days Percentage
represents the number of days a property is occupied in the period divided by
the total number of days the property is owned during the same period after
initially being placed in-service.
(3)For the three months ended March 31, 2021, Average Monthly Realized Rent is
calculated as the lease component of rents and other single-family property
revenues (i.e., rents from single-family properties) divided by the product of
(a) number of properties and (b) Average Occupied Days Percentage, divided by
the number of months. For properties partially owned during the period, this is
adjusted to reflect the number of days of ownership.
(4)Average Original Lease Term and Average Remaining Lease Term are reflected as
of period end.
(5)Represents the percentage change in rent on all non-month-to-month lease
renewals and re-leases during the three months ended March 31, 2021, compared to
the annual rent of the previously expired non-month-to-month comparable
long-term lease for each property.
(6)Represents 15 markets in 13 states.

  We believe these key single-family property and leasing metrics provide useful
information to investors because they allow investors to understand the
composition and performance of our properties on a market by market basis.
Management also uses these metrics to understand the composition and performance
of our properties at the market level.

Factors That Affect Our Results of Operations and Financial Condition



  Our results of operations and financial condition are affected by numerous
factors, many of which are beyond our control. Currently, the most significant
factor impacting our results of operations and financial condition is the effect
of the COVID-19 pandemic, which is discussed above. Other key factors that
impact our results of operations and financial condition include the pace at
which we identify and acquire suitable land and properties, the time and cost
required to renovate the acquired properties, the pace and cost of our property
developments, the time to lease newly acquired or developed properties at
acceptable rental rates, occupancy levels, rates of tenant turnover, the length
of vacancy in properties between tenant leases, our expense ratios, our ability
to raise capital and our capital structure.

Property Acquisitions, Development and Dispositions



  Since our formation, we have rapidly but systematically grown our portfolio of
single-family properties. Our ability to identify and acquire homes that meet
our investment criteria is impacted by home prices in our target markets, the
inventory of properties available-for-sale through traditional acquisition
channels, competition for our target assets and our available capital. We are
increasingly focused on developing "built-for-rental" homes through our internal
AMH Development Program and acquiring

                                       30
--------------------------------------------------------------------------------

newly constructed homes from third-party developers through our National Builder
Program. Opportunities from these new construction channels are impacted by the
availability of vacant developed lots, development land assets and inventory of
homes currently under construction or newly developed. Our level of investment
activity has fluctuated based on the number of suitable opportunities and the
level of capital available to invest. During the three months ended March 31,
2021, we developed or acquired 580 homes, including 299 newly constructed
properties delivered through our AMH Development Program and 281 homes acquired
through our National Builder Program and traditional acquisition channel,
partially offset by 180 homes sold.

  Our properties held for sale were identified based on sub-market analysis, as
well as individual property-level operational review. As of March 31, 2021 and
December 31, 2020, there were 636 and 711 properties, respectively, classified
as held for sale. We will continue to evaluate our properties for potential
disposition going forward as a normal course of business.

Property Operations



  Homes added to our portfolio through new construction channels include
properties developed through our internal AMH Development Program and newly
constructed properties acquired from third-party developers through our National
Builder Program. Rental homes developed through our AMH Development Program
involve substantial up-front costs, time to acquire and develop land, time to
build the rental home, and time to lease the rental home before the home
generates income. This process is dependent upon the nature of each lot acquired
and the timeline varies primarily due to land development requirements. Once
land development requirements have been met, on average it takes approximately
four to six months to complete the rental home vertical construction process.
However, delivery of homes may be staggered to facilitate leasing absorption.
Our internal construction program is managed by our team of development
professionals that oversee the full rental home construction process including
all land development and work performed by subcontractors. We typically incur
costs between $200,000 and $400,000 to acquire and develop land and build a
rental home. Homes added through our AMH Development Program are available for
lease immediately upon or shortly after receipt of a certificate of occupancy.
Rental homes acquired from third-party developers through our National Builder
Program are dependent on the inventory of newly constructed homes and homes
currently under construction.

  Homes added to our portfolio through traditional acquisition channels require
expenditures in addition to payment of the purchase price, including property
inspections, closing costs, liens, title insurance, transfer taxes, recording
fees, broker commissions, property taxes and homeowner association ("HOA") fees,
when applicable. In addition, we typically incur costs between $15,000 and
$30,000 to renovate a home acquired through traditional acquisition channels to
prepare it for rental. Renovation work varies, but may include paint, flooring,
cabinetry, appliances, plumbing hardware and other items required to prepare the
home for rental. The time and cost involved to prepare our homes for rental can
impact our financial performance and varies among properties based on several
factors, including the source of acquisition channel and age and condition of
the property. On average, it takes approximately 20 to 40 days to complete the
renovation process.

  Our operating results are also impacted by the amount of time it takes to
market and lease a property, which can vary greatly among properties, and is
impacted by local demand, our marketing techniques and the size of our available
inventory. On average, it takes approximately 20 to 40 days to lease a property
after acquiring or developing a new property through our new construction
channels or after completing the renovation process for a traditionally acquired
property. Lastly, our operating results are impacted by the length of stay of
our tenants and the amount of time it takes to prepare and re-lease a property
after a tenant vacates. This process, which we refer to as "turnover," is
impacted by numerous factors, including the condition of the home upon move-out
of the previous tenant, and by local demand, our marketing techniques and the
size of our available inventory at the time of the turnover. On average, it
takes approximately 30 to 60 days to complete the turnover process.

Revenues



  Our revenues are derived primarily from rents collected from tenants for our
single-family properties under lease agreements which typically have a term of
one year. Our rental rates and occupancy levels are affected by macroeconomic
factors and local and property-level factors, including market conditions,
seasonality and tenant defaults, and the amount of time it takes to turn
properties when tenants vacate. Additionally, our ability to collect revenues
and related operating results are impacted by the credit worthiness and quality
of our tenants. Typically, our tenants have household incomes ranging from
$70,000 to $120,000 and primarily consist of families with approximately two
adults and one or more children.

Our rents and other single-family property revenues are comprised of rental revenue from single-family properties, fees from our single-family property rentals and "tenant charge-backs," which are primarily related to cost recoveries on utilities.



  Our ability to maintain and grow revenues from our existing portfolio of homes
will be dependent on our ability to retain tenants and increase rental rates.
Based on our Same-Home population of properties (defined below), the
year-over-year increase in

                                       31
--------------------------------------------------------------------------------

Average Monthly Realized Rent per property was 3.3% for the three months ended
March 31, 2021, and we experienced turnover rates of 7.0% and 8.1% during the
three months ended March 31, 2021 and 2020, respectively.

Expenses

We monitor the following categories of expenses that we believe most significantly affect our results of operations.

Property Operating Expenses



  Once a property is available for lease for the first time, which we refer to
as "rent-ready," we incur ongoing property-related expenses which may not be
subject to our control. These include primarily property taxes, repairs and
maintenance ("R&M"), turnover costs, HOA fees (when applicable) and insurance.

Property Management Expenses



  As we internally manage our portfolio of single-family properties through our
proprietary property management platform, we incur costs such as salary expenses
for property management personnel, lease expenses and operating costs for
property management offices and technology expenses for maintaining our property
management platform. As part of developing our property management platform, we
have made significant investments in our infrastructure, systems and technology.
We believe that these investments will enable our property management platform
to become more efficient over time, especially as our portfolio grows. Also
included in property management expenses is noncash share-based compensation
expense related to centralized and field property management employees.

Seasonality



  We believe that our business and related operating results will be impacted by
seasonal factors throughout the year. We experience higher levels of tenant
move-outs and move-ins during the late spring and summer months, which impacts
both our rental revenues and related turnover costs. Our property operating
costs are seasonally impacted in certain markets for expenses such as HVAC
repairs, turn costs and landscaping expenses during the summer season.
Additionally, our single-family properties are at greater risk in certain
markets for adverse weather conditions such as hurricanes in the late summer
months and extreme cold weather in the winter months.

General and Administrative Expense



  General and administrative expense primarily consists of corporate payroll and
personnel costs, federal and state taxes, trustees' and officers' insurance
expenses, audit and tax fees, trustee fees and other expenses associated with
our corporate and administrative functions. Also included in general and
administrative expense is noncash share-based compensation expense related to
corporate administrative employees.

Results of Operations



  Net income totaled $48.9 million for the three months ended March 31, 2021,
compared to net income of $37.5 million for the three months ended March 31,
2020. This increase was primarily attributable to growth in the Company's
portfolio, higher occupancy and higher rental rates, as well as an increase in
gain on sale and impairment of single-family properties and other, net,
partially offset by increased uncollectible rents related to the COVID-19
pandemic.

  Effective March 31, 2021, the Company reclassified certain impairment charges
related to homes classified as held for sale from other expenses to gain on sale
and impairment of single-family properties and other, net within the condensed
consolidated statements of operations. The Company also reclassified other
revenues and the remaining other expenses to other income and expense, net
within the condensed consolidated statements of operations. The reclassification
had no impact to net income, core revenues, core property operating expenses,
Core NOI, Core FFO and Adjusted FFO attributable to common share and unit
holders, Adjusted EBITDAre or Fully Adjusted EBITDAre.

  As we continue to grow our portfolio with a portion of our homes still
recently developed, acquired and/or renovated, we distinguish our portfolio of
homes between Same-Home properties and Non-Same-Home and Other properties in
evaluating our operating performance. We classify a property as Same-Home if it
has been stabilized longer than 90 days prior to the beginning of the earliest
period presented under comparison and if it has not been classified as held for
sale or taken out of service as a result of a casualty loss, which allows the
performance of these properties to be compared between periods. Single-family
properties that we acquire individually (i.e., not through a bulk purchase) are
classified as either stabilized or non-stabilized. A property is classified as

                                       32
--------------------------------------------------------------------------------

stabilized once it has been renovated by the Company or newly constructed and
then initially leased or available for rent for a period greater than 90 days.
Properties acquired through a bulk purchase are first considered non-stabilized,
as an entire group, until (1) we have owned them for an adequate period of time
to allow for complete on-boarding to our operating platform, and (2) a
substantial portion of the properties have experienced tenant turnover at least
once under our ownership, providing the opportunity for renovations and
improvements to meet our property standards. After such time has passed,
properties acquired through a bulk purchase are then evaluated on an individual
property basis under our standard stabilization criteria. All other properties,
including those classified as held for sale or taken out of service as a result
of a casualty loss, are classified as Non-Same-Home and Other.

  One of the primary financial measures we use in evaluating the operating
performance of our single-family properties is Core Net Operating Income ("Core
NOI"), which we also present separately for our Same-Home portfolio. Core NOI is
a supplemental non-GAAP financial measure that we define as core revenues, which
is calculated as rents and other single-family property revenues, excluding
expenses reimbursed by tenant charge-backs, less core property operating
expenses, which is calculated as property operating and property management
expenses, excluding noncash share-based compensation expense and expenses
reimbursed by tenant charge-backs.

  Core NOI also excludes (1) gain or loss on early extinguishment of debt, (2)
hurricane-related charges, net, which result in material charges to the impacted
single-family properties, (3) gains and losses from sales or impairments of
single-family properties and other, (4) depreciation and amortization, (5)
acquisition and other transaction costs incurred with business combinations and
the acquisition or disposition of properties as well as nonrecurring items
unrelated to ongoing operations, (6) noncash share-based compensation expense,
(7) interest expense, (8) general and administrative expense, and (9) other
income and expense, net. We believe Core NOI provides useful information to
investors about the operating performance of our single-family properties
without the impact of certain operating expenses that are reimbursed through
tenant charge-backs.

  Core NOI and Same-Home Core NOI should be considered only as supplements to
net income or loss as a measure of our performance and should not be used as
measures of our liquidity, nor are they indicative of funds available to fund
our cash needs, including our ability to pay dividends or make distributions.
Additionally, these metrics should not be used as substitutes for net income or
loss or net cash flows from operating activities (as computed in accordance with
accounting principles generally accepted in the United States of America
("GAAP")).



                                       33

--------------------------------------------------------------------------------

Comparison of the Three Months Ended March 31, 2021 to the Three Months Ended March 31, 2020

The following table presents a summary of Core NOI for our Same-Home properties, Non-Same-Home and Other properties, and total properties for the three months ended March 31, 2021 and 2020 (in thousands):



                                                                                  For the Three Months Ended March 31, 2021
                                                                                        Non-Same-
                                       Same-Home                % of Core             Home and Other             % of Core               Total               % of Core
                                     Properties (1)              Revenue                Properties                Revenue             Properties              Revenue
Rents from single-family
properties                         $       237,554                                  $        30,767                                  $  268,321
Fees from single-family properties           4,424                                              750                                       5,174
Bad debt (2)                                (5,960)                                            (757)                                     (6,717)
Core revenues                              236,018                                           30,760                                     266,778

Property tax expense                        41,864                    17.8  %                 5,544                    18.0  %           47,408                    17.8  %
HOA fees, net (3)                            4,327                     1.8  %                   640                     2.1  %            4,967                     1.9  %
R&M and turnover costs, net (3)(4)          15,794                     6.7  %                 2,442                     7.9  %           18,236                     6.8  %
Insurance                                    2,423                     1.0  %                   365                     1.2  %            2,788                     1.0  %
Property management expenses, net
(5)                                         18,917                     8.0  %                 3,283                    10.7  %           22,200                     8.3  %
Core property operating expenses            83,325                    35.3  %                12,274                    39.9  %           95,599                    35.8  %

Core NOI                           $       152,693                    64.7  %       $        18,486                    60.1  %       $  171,179                    64.2  %



                                                                                  For the Three Months Ended March 31, 2020
                                                                                        Non-Same-
                                       Same-Home                % of Core             Home and Other             % of Core               Total               % of Core
                                     Properties (1)              Revenue                Properties                Revenue             Properties              Revenue
Rents from single-family
properties                         $       225,030                                  $        20,300                                  $  245,330
Fees from single-family properties           3,564                                              450                                       4,014
Bad debt                                    (1,695)                                            (320)                                     (2,015)
Core revenues                              226,899                                           20,430                                     247,329

Property tax expense                        40,253                    17.7  %                 4,715                    23.1  %           44,968                    18.2  %
HOA fees, net (3)                            3,982                     1.8  %                   534                     2.6  %            4,516                     1.8  %
R&M and turnover costs, net (3)             14,941                     6.6  %                 2,166                    10.6  %           17,107                     6.9  %
Insurance                                    2,060                     0.9  %                   253                     1.2  %            2,313                     0.9  %
Property management expenses, net
(5)                                         18,892                     8.3  %                 2,525                    12.4  %           21,417                     8.7  %
Core property operating expenses            80,128                    35.3  %                10,193                    49.9  %           90,321                    36.5  %

Core NOI                           $       146,771                    64.7  %       $        10,237                    50.1  %       $  157,008                    63.5  %



(1)Includes 47,258 properties that have been stabilized longer than 90 days
prior to January 1, 2020.
(2)Includes increased uncollectible rents related to the COVID-19 pandemic of
$4.5 million and $4.2 million for the total portfolio and Same-Home portfolio,
respectively, during the three months ended March 31, 2021.
(3)Presented net of tenant charge-backs.
(4)Includes increased uncollectible tenant reimbursements of $0.4 million and
$0.4 million for the total portfolio and Same-Home portfolio, respectively,
during the three months ended March 31, 2021.
(5)Presented net of tenant charge-backs and excludes noncash share-based
compensation expense related to centralized and field property management
employees.



                                       34

--------------------------------------------------------------------------------

  The following are reconciliations of core revenues, Same-Home core revenues,
core property operating expenses, Same-Home core property operating expenses,
Core NOI and Same-Home Core NOI to their respective GAAP metrics for the three
months ended March 31, 2021 and 2020 (amounts in thousands):

                                                         For the Three Months Ended
                                                                  March 31,
                                                             2021                 2020

Core revenues and Same-Home core revenues
Rents and other single-family property revenues    $      312,573              $ 287,342
Tenant charge-backs                                       (45,795)               (40,013)
Core revenues                                             266,778                247,329
Less: Non-Same-Home core revenues                          30,760                 20,430
Same-Home core revenues                            $      236,018              $ 226,899



Core property operating expenses and Same-Home core property
operating expenses
Property operating expenses                                      $  118,694          $  107,497
Property management expenses                                         23,699              23,276
Noncash share-based compensation - property management                 (999)               (439)
Expenses reimbursed by tenant charge-backs                          (45,795)            (40,013)
Core property operating expenses                                     95,599              90,321
Less: Non-Same-Home core property operating expenses                 12,274              10,193
Same-Home core property operating expenses                       $   83,325

$ 80,128





Core NOI and Same-Home Core NOI
Net income                                                        $   

48,921 $ 37,527

Gain on sale and impairment of single-family properties and other, net

                                                           (16,069)             (6,319)
Depreciation and amortization                                         90,071              82,821
Acquisition and other transaction costs                                4,846               2,147
Noncash share-based compensation - property management                   999                 439
Interest expense                                                      28,005              29,715
General and administrative expense                                    15,205              11,266
Other income and expense, net                                           (799)               (588)
Core NOI                                                             171,179             157,008
Less: Non-Same-Home Core NOI                                          18,486              10,237
Same-Home Core NOI                                                $  

152,693 $ 146,771

Rents and Other Single-Family Property Revenues



  Rents and other single-family property revenues increased 8.8% to $312.6
million for the three months ended March 31, 2021 from $287.3 million for the
three months ended March 31, 2020. Revenue growth was driven by an increase in
our average occupied portfolio which grew to 51,648 homes for the three months
ended March 31, 2021, compared to 48,898 homes for the three months ended March
31, 2020, as well as higher rental rates, partially offset by increased
uncollectible rents related to the COVID-19 pandemic.

Property Operating Expenses



  Property operating expenses increased 10.4% to $118.7 million for the three
months ended March 31, 2021 from $107.5 million for the three months ended March
31, 2020. This increase was primarily attributable to higher property tax
expense and higher R&M and turnover costs as a result of growth in our
portfolio.

Property Management Expenses



  Property management expenses for the three months ended March 31, 2021 and
2020 were $23.7 million and $23.3 million, respectively, which included $1.0
million and $0.4 million, respectively, of noncash share-based compensation
expense related to centralized and field property management employees. The
increase in property management expenses was primarily attributable to

                                       35
--------------------------------------------------------------------------------

higher noncash share-based compensation expense and higher personnel costs, partially offset by lower employee travel and office costs.

Core Revenues from Same-Home Properties



  Core revenues from Same-Home properties increased 4.0% to $236.0 million for
the three months ended March 31, 2021 from $226.9 million for the three months
ended March 31, 2020 primarily driven by a 3.3% increase in Average Monthly
Realized Rent per property, which increased to $1,722 per month for the three
months ended March 31, 2021 compared to $1,667 per month for the three months
ended March 31, 2020, as well as a 2.1% increase in Average Occupied Days
Percentage, partially offset by an increase in uncollectible rents related to
the COVID-19 pandemic.

Core Property Operating Expenses from Same-Home Properties



  Core property operating expenses from Same-Home properties consist of direct
property operating expenses, net of tenant charge-backs, and property management
costs, net of tenant charge-backs, and excludes noncash share-based compensation
expense. Core property operating expenses from Same-Home properties increased
4.0% to $83.3 million for the three months ended March 31, 2021 from $80.1
million for the three months ended March 31, 2020, primarily driven by annual
growth in property tax expense and higher R&M and turnover costs, net.

General and Administrative Expense



  General and administrative expense primarily consists of corporate payroll and
personnel costs, federal and state taxes, trustees' and officers' insurance
expense, audit and tax fees, trustee fees and other expenses associated with our
corporate and administrative functions. General and administrative expense for
the three months ended March 31, 2021 and 2020 was $15.2 million and $11.3
million, respectively, which included $4.3 million and $1.4 million,
respectively, of noncash share-based compensation expense related to corporate
administrative employees. The increase in general and administrative expense was
primarily related to higher noncash share-based compensation expense driven by
retirement provisions that resulted in accelerated expense recognition for
retirement eligible employees during the three months ended March 31, 2021, as
well as an increase in professional fees.

Interest Expense



  Interest expense decreased 5.8% to $28.0 million for the three months ended
March 31, 2021 from $29.7 million for the three months ended March 31, 2020.
This decrease was primarily related to additional capitalized interest during
the three months ended March 31, 2021 related to an increase in our development
activities under our AMH Development Program.

Acquisition and Other Transaction Costs



  Acquisition and other transaction costs consists primarily of costs associated
with purchases of single-family properties, including newly constructed
properties from third-party builders, the development of single-family
properties, or the disposal of certain properties or portfolios of properties
which do not qualify for capitalization. Acquisition and other transaction costs
were $4.8 million and $2.1 million for the three months ended March 31, 2021 and
2020, respectively, which included $2.8 million of noncash share-based
compensation expense related to employees in these functions during the three
months ended March 31, 2021. The increase in acquisition and other transaction
costs was primarily related to higher noncash share-based compensation expense
driven by retirement provisions that resulted in accelerated expense recognition
for retirement eligible employees during the three months ended March 31, 2021.

Depreciation and Amortization



  Depreciation and amortization expense consists primarily of depreciation of
buildings and improvements. Depreciation of our assets is calculated over their
useful lives on a straight-line basis over three to 30 years. Our intangible
assets are amortized on a straight-line basis over the asset's estimated
economic useful life. Depreciation and amortization expense increased 8.8% to
$90.1 million for the three months ended March 31, 2021 from $82.8 million for
the three months ended March 31, 2020 primarily due to growth in our average
number of depreciable properties.

Gain on Sale and Impairment of Single-Family Properties and Other, net



  Gain on sale and impairment of single-family properties and other, net was
$16.1 million and $6.3 million for the three months ended March 31, 2021 and
2020, respectively, which included $0.1 million and $4.4 million of impairment
charges, respectively, related to homes classified as held for sale during each
period. The increase was primarily related to higher net gains

                                       36
--------------------------------------------------------------------------------

from property sales as well as lower impairment charges. During the three months
ended March 31, 2020, a $3.5 million noncash write-down associated with the
liquidation of legacy joint ventures, which were acquired as part of the
American Residential Properties, Inc. merger in February 2016, was included in
gain on sale and impairment of single-family properties and other, net.

Other Income and Expense, net



  Other income and expense, net was $0.8 million and $0.6 million for the three
months ended March 31, 2021 and 2020, respectively, which primarily related to
interest income, fees from unconsolidated joint ventures, equity in earnings
from unconsolidated joint ventures, partially offset by expenses related to
unconsolidated joint ventures.

Critical Accounting Policies and Estimates

Our critical accounting policies are included in Part II, "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2020 Annual Report. There have been no changes to these policies during the three months ended March 31, 2021.

Income Taxes



  AH4R has elected to be taxed as a REIT for U.S. federal income tax purposes
under Sections 856 to 860 of the Internal Revenue Code of 1986, as amended (the
"Code"), commencing with our taxable year ended December 31, 2012. We believe
that we have operated, and continue to operate, in such a manner as to satisfy
the requirements for qualification as a REIT. Provided that we qualify as a REIT
and our distributions to our shareholders equal or exceed our REIT taxable
income (determined without regard to the deduction for dividends paid and
including any net capital gains), we generally will not be subject to U.S.
federal income tax.

  Qualification and taxation as a REIT depend upon our ability to meet the
various qualification tests imposed under the Code, including tests related to
the percentage of income that we earn from specified sources and the percentage
of our earnings that we distribute to our shareholders. Accordingly, no
assurance can be given that we will continue to be organized or be able to
operate in a manner so as to remain qualified as a REIT. If we fail to qualify
as a REIT in any taxable year and do not qualify for certain statutory relief
provisions, we would be subject to U.S. federal income tax and state income tax
on our taxable income at regular corporate tax rates, and we would likely be
precluded from qualifying for treatment as a REIT until the fifth calendar year
following the year in which we fail to qualify.

  Even if we qualify as a REIT, we may be subject to certain state or local
income and capital taxes and U.S. federal income and excise taxes on our
undistributed REIT taxable income, if any. Certain of our subsidiaries are
subject to taxation by U.S. federal, state and local authorities for the periods
presented. We made joint elections to treat certain subsidiaries as taxable REIT
subsidiaries which are subject to U.S. federal, state and local taxes on their
income at regular corporate rates. The tax years from 2016 to present generally
remain open to examination by the taxing jurisdictions to which the Company is
subject.

  We believe that our Operating Partnership is properly treated as a partnership
for U.S. federal income tax purposes. As a partnership, the Operating
Partnership is not subject to U.S. federal income tax on its income. Instead,
each of the Operating Partnership's partners, including AH4R, is allocated, and
may be required to pay tax with respect to, its share of the Operating
Partnership's income. As such, no provision for U.S. federal income taxes has
been included for the Operating Partnership.

  Accounting Standards Codification 740-10, Income Taxes, requires recognition
of deferred tax assets for the expected future tax consequences of events that
have been included in the financial statements or tax returns. Under this
method, deferred tax assets and liabilities are determined based on the
differences between the financial reporting and tax bases of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse. We recognize tax benefits of uncertain tax
positions only if it is more likely than not that the tax position will be
sustained, based solely on its technical merits, with the taxing authority
having full knowledge of all relevant information. The measurement of a tax
benefit for an uncertain tax position that meets the more likely than not
threshold is based on a cumulative probability model under which the largest
amount of tax benefit recognized is the amount with a greater than 50%
likelihood of being realized upon ultimate settlement with the taxing authority
having full knowledge of all the relevant information. As of March 31, 2021,
there were no deferred tax assets and liabilities or unrecognized tax benefits
recorded by the Company. We do not anticipate a significant change in
unrecognized tax benefits within the next 12 months.

  As a REIT, we generally are required to distribute annually to our
shareholders at least 90% of our REIT taxable income (determined without regard
to the deduction for dividends paid and any net capital gains) and to pay tax at
regular corporate rates to the extent that we annually distribute less than 100%
of our REIT taxable income (determined without regard to the deduction for
dividends paid and including any net capital gains). The Operating Partnership
funds the payment of distributions. As of December 31,

                                       37
--------------------------------------------------------------------------------

2020, AH4R had a net operating loss ("NOL") for U.S. federal income tax purposes
of an estimated $60.2 million. We intend to use our NOL (to the extent
available) to reduce our REIT taxable income to the extent that REIT taxable
income is not reduced by our deduction for dividends paid.

Recent Accounting Pronouncements

See Note 2. Significant Accounting Policies to our condensed consolidated financial statements in this report for a discussion of the adoption and potential impact of recently issued accounting standards, if any.

Liquidity and Capital Resources



  Our liquidity and capital resources as of March 31, 2021 included cash and
cash equivalents of $75.2 million. Additionally, as of March 31, 2021, we had
$80.0 million of outstanding borrowings under our revolving credit facility,
which provides for maximum borrowings of up to $800.0 million, of which $1.5
million was committed to outstanding letters of credit. As further described in
Note 16. Subsequent Events, the Company closed a $1.25 billion revolving credit
facility on April 15, 2021, amending its existing $800 million revolving credit
facility. We have no debt maturities, other than recurring principal
amortization and our revolving credit facility which was amended subsequent to
quarter end, until 2024.

  Liquidity is a measure of our ability to meet potential cash requirements,
maintain our assets, fund our operations, make distributions to our shareholders
and OP unitholders, including AH4R, and meet other general requirements of our
business. Our liquidity, to a certain extent, is subject to general economic,
financial, competitive and other factors beyond our control. Our liquidity
requirements consist primarily of funds necessary to pay for the acquisition,
development, renovation and maintenance of our properties, HOA fees (as
applicable), real estate taxes, non-recurring capital expenditures, interest and
principal payments on our indebtedness, general and administrative expenses,
payment of quarterly dividends on our preferred shares and units, and payment of
distributions to our common shareholders and unitholders.

  We seek to satisfy our liquidity needs through cash provided by operations,
long-term secured and unsecured borrowings, issuances of debt and equity
securities (including OP units), asset-backed securitizations, property
dispositions and joint venture transactions. We have financed our operations,
acquisitions and development expenditures to date through the issuance of equity
securities, borrowings under our credit facilities, asset-backed securitizations
and unsecured senior notes, and proceeds from the sale of single-family
properties. Going forward, we expect to meet our operating liquidity
requirements generally through cash on hand and cash provided by operations. We
believe our rental income, net of operating expenses and recurring capital
expenditures, will generally provide cash flow sufficient to fund our operations
and dividend distributions. However, our real estate assets are illiquid in
nature. A timely liquidation of assets might not be a viable source of
short-term liquidity should a cash flow shortfall arise, and we may need to
source liquidity from other financing alternatives including drawing on our
revolving credit facility.

  As discussed above under "COVID-19 Business Update," the COVID-19 pandemic has
had an adverse impact on the economy and our operating cash flows. Since we do
not know the ultimate severity and length of the COVID-19 pandemic, and thus
cannot predict the impact it will have on our tenants and on the debt and equity
capital markets, we cannot estimate the ultimate impact it will have on our
liquidity and capital resources.

Cash Flows



  The following table summarizes the Company's and the Operating Partnership's
cash flows for the three months ended March 31, 2021 and 2020 (in thousands):

                                                        For the Three Months Ended
                                                                 March 31,
                                                         2021                  2020               Change

Net cash provided by operating activities $ 151,997 $ 126,496 $ 25,501 Net cash used for investing activities

                   (208,230)           (179,214)            (29,016)
Net cash provided by financing activities                   3,260              50,328             (47,068)
Net decrease in cash, cash equivalents and
restricted cash                                    $      (52,973)         $   (2,390)         $  (50,583)

Operating Activities



  Our cash flows provided by operating activities, which is our principal source
of cash flows, depend on numerous factors, including the occupancy level of our
properties, the rental rates achieved on our leases, the collection of rent from
our tenants and the level of property operating expenses, property management
expenses and general and administrative expenses. Net cash provided by

                                       38
--------------------------------------------------------------------------------

operating activities increased $25.5 million, or 20.2%, from $126.5 million for
the three months ended March 31, 2020 to $152.0 million for the three months
ended March 31, 2021, primarily as a result of increased cash flows generated
from a larger number of occupied properties and increases in rental rates on
lease renewals and re-leasing of our single-family properties, partially offset
by a decrease in collections on rent associated with the COVID-19 pandemic.

Investing Activities



  Net cash used for investing activities increased $29.0 million, or 16.2%, from
$179.2 million for the three months ended March 31, 2020 to $208.2 million for
the three months ended March 31, 2021, primarily driven by a decrease in net
proceeds received from sales of single-family properties and other. Our
investing activities are most significantly impacted by the strategic expansion
of our portfolio through traditional acquisition channels, the development of
"built-for-rental" homes through our AMH Development Program and acquiring newly
built properties through our National Builder Program. We use cash generated
from operating and financing activities and by recycling capital through the
sale of single-family properties to invest in this strategic expansion. Net cash
used for investing activities also increased due to higher recurring and other
capital expenditures for single-family properties and renovations to
single-family properties as a result of investments in properties to increase
future revenues or reduce maintenance expenditures. The development of
"built-for-rental" homes and our property-enhancing capital expenditures may
reduce recurring and other capital expenditures on an average per home basis in
the future. These increased cash outflows were partially offset by additional
distributions from unconsolidated joint ventures in respect of contributions of
land and in-process development projects.

Financing Activities



  Net cash provided by financing activities decreased $47.0 million from
$50.3 million for the three months ended March 31, 2020 to $3.3 million for the
three months ended March 31, 2021, primarily driven by $20.0 million of
increased distributions to share and unit holders and $25.0 million less in
borrowings on our revolving credit facility. The Company distributed
$69.1 million on a cash basis to share and unit holders during the three months
ended March 31, 2021 compared to $49.1 million during the three months ended
March 31, 2020. The Company borrowed $80.0 million on its revolving credit
facility during the three months ended March 31, 2021 compared to $105.0 million
during the three months ended March 31, 2020.

At-the-Market Common Share Offering Program



  During the second quarter of 2020, the Company extended its at-the-market
common share offering program under which it can issue Class A common shares
from time to time through various sales agents up to an aggregate gross sales
offering price of $500.0 million (the "At-the-Market Program"). The
At-the-Market Program also provides that we may enter into forward contracts for
our Class A common shares with forward sellers and forward purchasers. The
Company intends to use any net proceeds from the At-the-Market Program (i) to
repay indebtedness the Company has incurred or expects to incur under its
revolving credit facility, (ii) to develop new single-family properties and
communities, (iii) to acquire and renovate single-family properties and for
related activities in accordance with the Company's business strategy and (iv)
for working capital and general corporate purposes, including repurchases of the
Company's securities, acquisitions of additional properties, capital
expenditures and the expansion, redevelopment and/or improvement of properties
in the Company's portfolio. The At-the-Market Program may be suspended or
terminated by the Company at any time. During the three months ended March 31,
2021, no shares were issued under the At-the-Market Program. As of March 31,
2021, 86,130 shares have been issued under the At-the-Market Program and $497.6
million remained available for future share issuances.

Share Repurchase Program



  The Company's board of trustees authorized the establishment of our share
repurchase program for the repurchase of up to $300.0 million of our outstanding
Class A common shares and up to $250.0 million of our outstanding preferred
shares from time to time in the open market or in privately negotiated
transactions. The program does not have an expiration date, but may be suspended
or discontinued at any time without notice. All repurchased shares are
constructively retired and returned to an authorized and unissued status. The
Operating Partnership funds the repurchases and constructively retires an
equivalent number of corresponding Class A units. During the three months ended
March 31, 2021 and 2020, we did not repurchase and retire any of our shares. As
of March 31, 2021, we had a remaining repurchase authorization of up to $265.1
million of our outstanding Class A common shares and up to $250.0 million of our
outstanding preferred shares under the program.

Distributions



  As a REIT, we generally are required to distribute annually to our
shareholders at least 90% of our REIT taxable income (determined without regard
to the deduction for dividends paid and any net capital gains) and to pay tax at
regular corporate rates to the extent that we annually distribute less than 100%
of our REIT taxable income (determined without regard to the deduction for
dividends paid and including any net capital gains). The Operating Partnership
funds the payment of distributions. As of December 31,

                                       39
--------------------------------------------------------------------------------

2020, AH4R had an NOL for U.S. federal income tax purposes of an estimated
$60.2 million. We intend to use our NOL (to the extent available) to reduce our
REIT taxable income to the extent that REIT taxable income is not reduced by our
deduction for dividends paid.

Off-Balance Sheet Arrangements



  During the third quarter of 2020, one of our unconsolidated joint ventures
entered into a loan agreement to borrow up to a $201.0 million aggregate
commitment. During the initial two-year term, the loan bears interest at LIBOR
plus a 3.50% margin and matures on August 11, 2022. The loan agreement provides
for three one-year extension options that include additional fees and interest.
As of March 31, 2021, the joint venture's loan had a $116.7 million outstanding
principal balance. The Company has provided a customary non-recourse guarantee
that may become a liability for us upon a voluntary bankruptcy filing by the
joint venture or occurrence of other actions such as fraud or a material
misrepresentation by us or the joint venture. To date, the guarantee has not
been invoked and we believe that the actions that would trigger a guarantee
would generally be disadvantageous to the joint venture and us, and therefore
are unlikely to occur. However, there can be no assurances that actions that
could trigger the guarantee will not occur.

We have no other material obligations, assets or liabilities that would be considered off-balance sheet arrangements.

Contractual Obligations and Commitments

Material changes to our aggregate indebtedness, if any, are described in Note 8. Debt to our condensed consolidated financial statements in this report.

As further described in Note 16. Subsequent Events, the Company closed a $1.25 billion revolving credit facility on April 15, 2021, amending its existing $800 million revolving credit facility.



  Except as described in Note 15. Commitments and Contingencies to our condensed
consolidated financial statements in this report, as of March 31, 2021, there
have been no other material changes outside of the ordinary course of business
to our other known contractual obligations, which are set forth in the table
included in Part II, "Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our 2020 Annual Report.

Additional Non-GAAP Measures

Funds from Operations ("FFO") / Core FFO / Adjusted FFO attributable to common share and unit holders



  FFO attributable to common share and unit holders is a non-GAAP financial
measure that we calculate in accordance with the definition approved by the
National Association of Real Estate Investment Trusts ("NAREIT"), which defines
FFO as net income or loss calculated in accordance with GAAP, excluding gains
and losses from sales or impairment of real estate, plus real estate-related
depreciation and amortization (excluding amortization of deferred financing
costs and depreciation of non-real estate assets), and after adjustments for
unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

  Core FFO attributable to common share and unit holders is a non-GAAP financial
measure that we use as a supplemental measure of our performance. We compute
this metric by adjusting FFO attributable to common share and unit holders for
(1) acquisition and other transaction costs incurred with business combinations
and the acquisition or disposition of properties as well as nonrecurring items
unrelated to ongoing operations, (2) noncash share-based compensation expense,
(3) hurricane-related charges, net, which result in material charges to the
impacted single-family properties, and (4) gain or loss on early extinguishment
of debt.

  Adjusted FFO attributable to common share and unit holders is a non-GAAP
financial measure that we use as a supplemental measure of our performance. We
compute this metric by adjusting Core FFO attributable to common share and unit
holders for (1) Recurring Capital Expenditures that are necessary to help
preserve the value and maintain functionality of our properties and (2)
capitalized leasing costs incurred during the period. As a portion of our homes
are recently developed, acquired and/or renovated, we estimate Recurring Capital
Expenditures for our entire portfolio by multiplying (a) current period actual
Recurring Capital Expenditures per Same-Home Property by (b) our total number of
properties, excluding newly acquired non-stabilized properties and properties
classified as held for sale.

  We present FFO attributable to common share and unit holders because we
consider this metric to be an important measure of the performance of real
estate companies, as do many investors and analysts in evaluating the Company.
We believe that FFO attributable to common share and unit holders provides
useful information to investors because this metric excludes depreciation, which
is included in computing net income and assumes the value of real estate
diminishes predictably over time. We believe that real

                                       40
--------------------------------------------------------------------------------

estate values fluctuate due to market conditions and in response to inflation.
We also believe that Core FFO and Adjusted FFO attributable to common share and
unit holders provide useful information to investors because they allow
investors to compare our operating performance to prior reporting periods
without the effect of certain items that, by nature, are not comparable from
period to period.

  FFO, Core FFO and Adjusted FFO attributable to common share and unit holders
are not a substitute for net income or net cash provided by operating
activities, each as determined in accordance with GAAP, as a measure of our
operating performance, liquidity or ability to pay dividends. These metrics also
are not necessarily indicative of cash available to fund future cash needs.
Because other REITs may not compute these measures in the same manner, they may
not be comparable among REITs.

  The following is a reconciliation of the Company's net income attributable to
common shareholders, determined in accordance with GAAP, to FFO attributable to
common share and unit holders, Core FFO attributable to common share and unit
holders and Adjusted FFO attributable to common share and unit holders for the
three months ended March 31, 2021 and 2020 (in thousands):
                                                                            For the Three Months Ended
                                                                                     March 31,
                                                                             2021                  2020

Net income attributable to common shareholders                         $       30,214          $   20,244
Adjustments:
Noncontrolling interests in the Operating Partnership                           4,925               3,501

Gain on sale and impairment of single-family properties and other, net

   (16,069)             (6,319)
Adjustments for unconsolidated joint ventures                                     382                 238
Depreciation and amortization                                                  90,071              82,821
Less: depreciation and amortization of non-real estate assets                  (2,788)             (2,064)
FFO attributable to common share and unit holders                      $      106,735          $   98,421
Adjustments:
Acquisition, other transaction costs and other                                  4,846               2,852
Noncash share-based compensation - general and administrative                   4,342               1,369
Noncash share-based compensation - property management                            999                 439

Core FFO attributable to common share and unit holders (1)             $      116,922          $  103,081
Recurring Capital Expenditures                                                 (9,651)             (8,711)
Leasing costs                                                                    (975)               (910)

Adjusted FFO attributable to common share and unit holders (1) $

106,296 $ 93,460

(1)Core FFO and Adjusted FFO attributable to common share and unit holders include $4.5 million of increased uncollectible rents and $0.4 million of increased uncollectible tenant reimbursements during the first quarter of 2021 as a result of the COVID-19 pandemic.

EBITDA / EBITDAre / Adjusted EBITDAre / Fully Adjusted EBITDAre



  EBITDA is defined as earnings before interest, taxes, depreciation and
amortization. EBITDA is a non-GAAP financial measure and is used by us and
others as a supplemental measure of performance. EBITDAre is a supplemental
non-GAAP financial measure, which we calculate in accordance with the definition
approved by NAREIT by adjusting EBITDA for gains and losses from sales or
impairments of single-family properties and adjusting for unconsolidated
partnerships and joint ventures on the same basis. Adjusted EBITDAre is a
supplemental non-GAAP financial measure calculated by adjusting EBITDAre for (1)
acquisition and other transaction costs incurred with business combinations and
the acquisition or disposition of properties as well as nonrecurring items
unrelated to ongoing operations, (2) noncash share-based compensation expense,
(3) hurricane-related charges, net which result in material charges to the
impacted single-family properties, and (4) gain or loss on early extinguishment
of debt. Fully Adjusted EBITDAre is a supplemental non-GAAP financial measure
calculated by adjusting Adjusted EBITDAre for (1) Recurring Capital Expenditures
and (2) leasing costs. As a portion of our homes are recently developed,
acquired and/or renovated, we estimate Recurring Capital Expenditures for our
entire portfolio by multiplying (a) current period actual Recurring Capital
Expenditures per Same-Home Property by (b) our total number of properties,
excluding newly acquired non-stabilized properties and properties classified as
held for sale. We believe these metrics provide useful information to investors
because they exclude the impact of various income and expense items that are not
indicative of operating performance.

                                       41
--------------------------------------------------------------------------------


  The following is a reconciliation of net income, as determined in accordance
with GAAP, to EBITDA, EBITDAre, Adjusted EBITDAre and Fully Adjusted EBITDAre
for the three months ended March 31, 2021 and 2020 (in thousands):

                                                                      For the Three Months Ended
                                                                               March 31,
                                                                       2021                  2020

Net income                                                       $       48,921          $   37,527
Interest expense                                                         28,005              29,715
Depreciation and amortization                                            90,071              82,821
EBITDA                                                           $      

166,997 $ 150,063

Gain on sale and impairment of single-family properties and other, net

                                                              (16,069)             (6,319)
Adjustments for unconsolidated joint ventures                               382                 238
EBITDAre                                                         $      

151,310 $ 143,982



Noncash share-based compensation - general and administrative             4,342               1,369
Noncash share-based compensation - property management                      999                 439
Acquisition, other transaction costs and other                            4,846               2,852

Adjusted EBITDAre                                                $      161,497          $  148,642

Recurring Capital Expenditures                                           (9,651)             (8,711)
Leasing costs                                                              (975)               (910)
Fully Adjusted EBITDAre                                          $      150,871          $  139,021

© Edgar Online, source Glimpses