Invitation Homes Inc. · NYSE:INVH
Invitation Homes — Bank of America Merrill Lynch Global Real Estate Conference 2019
22 slides from Invitation Homes's conference presentation, Sep 9, 2019
Slide 1: Bank of America Merrill Lynch Global Real Estate Conference
Bank of America Merrill Lynch Global Real Estate Conference September 10, 2019 Together with you, we make a house a home.
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which include, but are not limited to, statemen
Slide 3: I. Invitation Homes Investment Highlights
Southern California I. INVITATION HOMES INVESTMENT HIGHLIGHTS 3
Slide 4: Invitation Homes Investment Highlights
Invitation Homes Investment Highlights Leading investor and operator of over 80k homes in a sector with outsized growth prospects • Strong household formation and low supply growth; Millennials reaching age where needs align with single-family housing Outsized Growth • Resident turnover rates have i
Slide 5: Higher Growth, Lower Risk
Higher Growth, Lower Risk Outsized growth prospects compared to residential peers, with attractive risk profile 2019 SS-NOI Growth Guidance Midpoint (Column bars) Single Family Rental is a Uniquely Attractive Asset Class 7.50% Strong supply/demand and demographic fundamentals driving both cash flo
Slide 6: Well-Positioned Coming Out of Peak Season
Well-Positioned Coming Out of Peak Season LeadingCarrying investor high occupancy and operator into the of overleasing 80k off homes-season; in aRental sector rate with growth outsized remains growth strong prospects Same Store Average Occupancy Same Store Blended Rental Rate Growth 5.3% 96.5% 96.5%
Slide 7: Strong Leasing Results Continue
Strong Leasing Results Continue Blended rent growth outpacing prior year Same Store Renewal Rental Rate Growth Same Store New Lease Rental Rate Growth 5.2% 5.4% 5.2% 4.8% 4.7% 4.9% 4.8% 4.8% 4.7% 3.8% 3.6% 2.5% Q1 Q2 Jul + Aug Q1 Q2 Jul + Aug 2018 2019 2018 2019 7
Slide 8: Premier Single-Family Portfolio
Premier Single-Family Portfolio Unmatched scale and density in high-growth locations; Recycling capital to enhance portfolio The IH Way: “Channel Agnostic, Location Specific” 70% of Revenue Generated Seattle in Western U.S. and 5% Florida Regions Minne- apolis >4,700 2% Northern Chicago Homes per Ma
Slide 9: West is Best – Blended Rental Rate Growth by Market
West is Best – Blended Rental Rate Growth by Market Western US and Florida footprint is a differentiating growth driver for Invitation Homes Seattle 8.4% Minne apolis 4.7% Northern Chicago California 2.6% 8.4% Denver 5.7% Las Southern Vegas 6.9% California Carolinas 7.6% Nashville 3.1% Phoenix 3.2%
Slide 10: West is Best – Average Occupancy by Market
West is Best – Average Occupancy by Market Strong occupancy across all markets Seattle 96.9% Minne apolis 97.2% Northern Chicago California 97.9% 97.4% Denver 96.6% Las Southern Vegas 97.8% California Carolinas 96.3% Nashville 96.3% Phoenix 95.2% 97.3% Atlanta Dallas 96.1% 95.4% Jacksonville 96.1% O
Slide 11: Best-in-Class Operating & Asset Management Platform
Best-in-Class Operating & Asset Management Platform Innovative ProCare Service Platform drives resident loyalty and operating efficiency The IH Way: “Eyes on Assets” • Proactive approach to resident care and maintenance • Local resident service, leasing, and asset/investment management, with central
Slide 12: Refining Portfolio and Pursuing Investment Grade Balance Sheet
Refining Portfolio and Pursuing Investment Grade Balance Sheet Maintaining an opportunistic eye toward acquisitions and dispositions while continuing to delever Capital Recycling to Enhance Portfolio Making Progress Towards Investment Grade Compelling market opportunity to prune portfolio and re-d
Slide 13: II. Compelling Industry Fundamentals
Seattle II. COMPELLING INDUSTRY FUNDAMENTALS 13
Slide 14: Favorable Macro Fundamentals
Favorable Macro Fundamentals Supply and demand remain supportive of growth, especially in Invitation Homes markets Projected Household Formations New Jobs-to-Permits Ratio (Household Growth, 2019e) (2019e Job Growth / 2018 Single Family Permits) 3.3x 1.8% 2.1x 0.8% (1) (1) U.S. Average Invitation Ho
Slide 15: Demographics to Drive Household Formation
Demographics to Drive Household Formation JBREC expects 12.5M net households to form over the next 10 years Significant pent up demand in millennial generation likely to move toward single family rental over the next decade Current Population by Age Cohort Percentage of 30-Year-Olds Hitting ‘Adult
Slide 16: Shortage of Single Family Housing Supply Likely to Continue
Shortage of Single Family Housing Supply Likely to Continue Single family home construction remains constrained Homebuilders cite rising labor costs, materials costs, impact fees, and regulatory hurdles as barriers to new supply Replacement cost increases for single family housing continue to ou
Slide 17: Barriers to New Supply are Higher at Lower Price Points
Barriers to New Supply are Higher at Lower Price Points Rising input costs have pushed homebuilders to larger homes at higher price points Invitation Homes’ portfolio competes primarily at the “starter” and “move-up” home segments of the housing market – Average purchase price on new acquisitions
Slide 18: III. The Invitation Homes Way – Leveraging Our Resources to Serve Communities
Denver III. THE INVITATION HOMES WAY – LEVERAGING OUR RESOURCES TO SERVE COMMUNITIES 18
Slide 19: Our Mission, Vision, and Values
Our Mission, Vision, and Values Mission Together with you, we make a house a home. Vision Values Unshakeable Integrity Continuous Excellence We hold ourselves accountable We always find a way to Be the premier choice in home leasing by to act with honesty, trust and innovate and deliver. continuousl
Slide 20: Positive Impact on Residents and Communities
Positive Impact on Residents and Communities Providing a high quality leasing experience for families and improving communities Resident Experience Community Investment “ProCare” professional resident services provided by in- ~$2 billion investment rehabilitating homes to date house local manage
Slide 21: Glossary
Glossary Adjusted EBITDAre We define EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; and depreciation and amortization. National Association of Real Estat
Slide 22: Notes
Notes Page 5 1) Residential Peers include AIV, AMH, AVB, CPT, EQR, ESS, MAA and UDR Page 14 1) Weighted by total homes in each Invitation Homes market, as of June 30, 2019. Page 17 1) INVH implied enterprise value per home based on August 30, 2019 closing stock price of $28.76 per share. 22
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