EVENT INVITE | Residential REIT Best Idea Presentation (AMH, INVH, AVB, CPT, EQR, ESS, MAA, UDR)

RESIDENTIAL REITs LAUNCH | (AMH, INVH, AVB, CPT, EQR, ESS, MAA, UDR)

CALL INVITE

We are very excited to be rolling out active coverage of the residential REIT subsector and we hope you can join us on Thursday, May 20^th at 2pm ET for the call and presentation.  REIT subscribers can click HERE for event details and materials when posted.  We will open the call by reviewing the macro backdrop for the sector, and then spend the bulk of the call presenting our best idea: a LONG of American Homes 4 Rent (AMH), which is one of two U.S.-listed single-family rental REITs.  Specifically, we will discuss why the intermediate- and long-term growth trajectory for AMH is materially underestimated and undervalued by the Street, and how a long of the stock can generate at least a mid-teens IRR through year-end 2022.  The magnitude of potential upward earnings revisions is among the highest we have ever seen in the REIT space. 

Figure 1: Updated Position Monitor 

KEY PRESENTATION TOPICS

• Introduction
• Review of Position Monitor
• Long AMH
  • Overall thesis
  • Earnings revision math and build-up
  • Rental rate growth forecasts
  • Impact of normalizing "bad debt"
  • Preferred stock redemptions
  • AMH's development platform
  • IRR analysis
  • Appendix:
  • Company overview
  • Earnings model
  • Illustrative NAV analysis
• Q&A