Terms

Series

Series G Cumulative Redeemable Perpetual Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

5.875%

Rate Type

Fixed

Annual Dividend

$1.47

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

July 17, 2022

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt And Other Liabilities Of The Issuer, Any Future Equity Shares Issued With Terms Specifically Providing They Rank Senior To Series G Preferred Shares With Respect To Dividend Payment Rights And Distribution Of Assets Upon Liquidation (Subject To Two-Thirds Holder Approval); Pari Passu With: Series A Participating Preferred Shares, Series B Participating Preferred Shares, Series C Participating Preferred Shares, Series D Cumulative Redeemable Perpetual Preferred Shares, Series E Cumulative Redeemable Perpetual Preferred Shares, Series F Cumulative Redeemable Perpetual Preferred Shares; Senior To: Common Shares (Class A And Class B), Any Other Class Or Series Of Equity Shares Expressly Designated As Ranking Junior To The Series G Preferred Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Ordinary

Shares Offered

4,600,000

Prospectus Summary

American Homes 4 Rent is issuing 4,600,000 Series G Cumulative Redeemable Perpetual Preferred Shares with a $25.00 liquidation preference and a fixed 5.875% annual dividend ($1.47 per share per year, paid quarterly). These are perpetual preferred shares with no maturity date unless the issuer elects to redeem them on or after July 17, 2022 at the $25.00 redemption price plus accrued dividends. Dividends are cumulative, meaning unpaid dividends accrue and must be paid before any common share dividends, regardless of whether the company has sufficient earnings or legal funds available in any given quarter. The Series G Preferred Shares rank senior to American Homes 4 Rent's common shares and junior to all debt obligations (approximately $2.9 billion outstanding as of March 31, 2017). They rank on par with five other preferred share series already outstanding (Series A–F). As a REIT holding company, American Homes 4 Rent is structurally subordinated to its operating partnership's creditors, since preferred shareholders have recourse only to REIT assets after debt service. The issuer may redeem these shares in limited circumstances to maintain REIT qualification under federal tax law, though no regulatory capital trigger mechanism is explicitly described. At the $25.00 offering price, the Series G Preferred Shares yield 5.875% annually. Dividends are paid quarterly (last business day of March, June, September, and December), with a record date 15 calendar days before each payment. As REIT dividends, the payments do not qualify for the preferential 15% long-term capital gains rate available to individuals, though corporate holders may be eligible for a dividends-received deduction; the prospectus incorporates detailed tax guidance by reference. A dividend stopper mechanism prevents the issuer from paying dividends on common shares if full cumulative dividends on the Series G Preferred Shares have not been declared and paid, and also blocks Series G payments if dividends on any senior preferred share remain unpaid, ensuring priority protection for preferred holders.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Dividends on common shares (junior equity securities) are blocked unless and until full cumulative dividends on all outstanding Series G Preferred Shares have been declared and paid (or a sum sufficient for payment has been set aside). Additionally, if dividends on any senior preferred shares remain unpaid, the issuer may not pay dividends on Series G Preferred Shares or redeem these shares until senior dividends are satisfied.

Other Preferreds from American Homes 4 Rent

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 43 (Average)