Terms

Series

Series H Cumulative Redeemable Perpetual Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

6.25%

Rate Type

Fixed

Annual Dividend

$1.56

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

September 19, 2023

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Debt Obligations, Any Equity Shares With Terms Specifically Ranking Senior To Series H Preferred Shares; Pari Passu With: Series D Cumulative Redeemable Perpetual Preferred Shares, Series E Cumulative Redeemable Perpetual Preferred Shares, Series F Cumulative Redeemable Perpetual Preferred Shares, Series G Cumulative Redeemable Perpetual Preferred Shares; Senior To: Class A Common Shares, Class B Common Shares, Any Equity Shares Expressly Designated As Junior To Series H Preferred Shares

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,000,000

Prospectus Summary

American Homes 4 Rent, a Maryland REIT focused on single-family rental homes, is issuing 4,000,000 shares of its 6.25% Series H Cumulative Redeemable Perpetual Preferred Shares at a $25.00 liquidation preference, generating $1.5625 per share annually ($0.390625 quarterly). These shares are perpetual with no maturity date and are callable at par on or after September 19, 2023. Crucially, the Series H is cumulative — missed dividends accrue and must be paid in full before any distributions can be made on common shares, providing meaningful (though not absolute) income protection for preferred holders. The Series H Preferred Shares sit above common equity but below all debt in American Homes 4 Rent's capital structure. As of June 30, 2018, the company carried approximately $2.7 billion in total indebtedness, which is entirely senior to the preferred. The shares rank on parity with the existing Series D, E, F, and G cumulative preferred shares. There is no bank regulatory capital call provision, as AMH is a REIT, not a financial institution. However, upon a Change of Control (defined as an acquisition of more than 50% of voting power combined with a NYSE/NASDAQ delisting), holders may convert into Class A common shares at the lesser of the liquidation-value-divided-by-market-price or a cap of 2.2173 common shares per preferred share — unless the issuer exercises its redemption right first. At par, the Series H yields exactly 6.25% annually, paid quarterly on the last day of March, June, September, and December, with record dates on the 15th of those same months. Because American Homes 4 Rent is a REIT, dividends are generally characterized as ordinary income and do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate available to most C-corporation preferred dividends, nor for the corporate dividends-received deduction (DRD). Dividend payments can be interrupted: if full dividends are not being paid on parity preferred shares, Series H dividends must be cut pro rata, and any shares ranking senior to the preferred must have their dividends satisfied before Series H holders receive anything.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If dividends on any parity preferred shares are not paid in full, Series H dividends must be reduced pro rata; additionally, unpaid dividends on any shares ranking senior must be satisfied before Series H dividends can be paid.

Other Preferreds from American Homes 4 Rent

Div Score Breakdown

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