Invitation Homes Inc. · NYSE:INVH
Invitation Homes — Citi Global Property CEO Conference 2019
21 slides from Invitation Homes's conference presentation, Mar 4, 2019
Slide 1: Investor Presentation: Citi Global Property CEO Conference
Investor Presentation Citi Global Property CEO Conference March 4 - 6, 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: Investment Summary
Investment Summary Leading investor and operator of over 80k homes in a sector with outsized growth prospects • 12.5M net households to form in next 10 years; millennials reaching age where needs align with single-family housing (1) Outsized Growth • Single-family housing supply growth remains low,
Slide 5: Strong Start to 2019
Strong Start to 2019 Occupancy and rent growth accelerating into 2019 Same Store Average Occupancy 96.4% 96.3% 96.0% 95.7% 95.6% 95.3% 95.3% 95.0% Q3 Q4 January February 2017 2018 2018 2019 Same Store Blended Rental Rate Growth 4.7% 4.4% 4.2% 4.3% 4.1% 3.7% 3.5% 3.4% Q3 Q4 January February 2017 2018
Slide 6: 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 in Western U.S. and Seattle Florida Regions 5% Minne- apolis ~4,750 1% Northern Chicago Homes per Ma
Slide 7: 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 and leasing, with centralized oversight and revenue man
Slide 8: Pursuing Investment Grade Balance Sheet
Pursuing Investment Grade Balance Sheet Significant enhancement of balance sheet in 2018; Continuing to prioritize deleveraging Low Cost, Flexible Capital Structure Making Progress Towards Investment Grade 12/31/18 (1) ► No debt maturities until 2021 12/31/17 Pro Forma(1) 9.5x 8.8x Net Debt to Adjus
Slide 9: II. Compelling Industry Fundamentals
Seattle II. COMPELLING INDUSTRY FUNDAMENTALS 9
Slide 10: 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 11: Favorable Near-term Demand Trends
Favorable Near-term Demand Trends Location advantage adds another tailwind to demand for Invitation Homes Job growth and household formation in Invitation Homes markets significantly exceeds U.S. averages Projected Employment Growth Projected Household Formations (Employment Growth, 2019e) (Househ
Slide 12: Affordability Positions Single-Family Rentals to Take Market Share
Affordability Positions Single-Family Rentals to Take Market Share Strong household formation + declining home purchase affordability creates ideal SFR conditions Affordability has become a challenge for potential homebuyers, resulting in declining home purchases The need for affordable single f
Slide 13: Invitation Homes Provides a Solution to Affordability
Invitation Homes Provides a Solution to Affordability Renting more affordable than owning in 15 of 17 Invitation Homes markets Invitation Homes offers high-quality homes in attractive neighborhoods and high-touch resident service, without the financial commitment of homeownership Same Store move
Slide 14: 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 15: 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 16: What If There is a Recession?
What If There is a Recession? Single-family rent growth has historically remained positive even in recessionary periods A mature, financially stable, and low-turnover resident base could provide cushion in a more challenging economy Invitation Homes Average Resident Profile • Age: 40 yrs • Wage Ea
Slide 17: III. The Invitation Homes Way – Leveraging Our Resources to Serve Communities
Denver III. THE INVITATION HOMES WAY – LEVERAGING OUR RESOURCES TO SERVE COMMUNITIES 17
Slide 18: 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 19: 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 20: 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 21: Notes
Notes Page 8 1) Pro forma the conversion of $230 million of convertible notes maturing in 2019, for which Invitation Homes has announced its intent to settle in common shares. Page 11 1) Weighted by total homes in each Invitation Homes market, as of December 31, 2018. Page 12 1) Index ranges from 0
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