Invitation Homes Inc. · NYSE:INVH
Invitation Homes — Investor Presentation (May 2017)
27 slides from Invitation Homes's investor presentation, May 18, 2017
Slide 1: Invitation Homes
= invitation Together with you, we make a house a home.
Slide 2: Invitation Homes Highlights
Invitation Homes Highlights class owner and operator of 47,918 single-family homes for lease some Low housing supply growth; permits 35% below long-term average in IH markets ‘) Industry Fundamentals Strong rental demand; demographics imply even more demand in the pipeline 72% of revenues concentrat
Slide 3: Portfolio Concentrated in Supply-Constrained Coastal Markets
Portfolio Concentrated in Supply-Constrained Coastal Markets of revenue generated in Western U.S. and FL markets >95? of revenue from markets with > 1,800 homes Northern ¥ California Chicago \) 4 Southern California Phoenix 12% 8% 35 below long-term average supply in IH markets !) South Florida 15%
Slide 4: High-Quality Homes
High-Quality Homes Seattle, WA 4 , invitation homes
Slide 5: Resident-Centric Service and Management
Resident-Centric Service and Management invitation! Satisfied Residents General Maintenance “ProCare” Proactive Service Program Maintenance Program > 24/7 maintenance hotline > Continuous evaluation of t diti 217 maintenance techs pel peein gy eeiniein sieht « 45-day post move-in visit > Majority of
Slide 6: Strategic Initiatives
Strategic Initiatives ng the portf and service platform to drive incremental growth and efficiency Location Product Service Continue to capitalize on favorable supply/demand fundamentals by driving outsized rent growth Focus acquisitions on Western U.S. and Florida Recycle capital accretively Begin
Slide 7: Compelling Industry Fundamentals
I COMPELLING INDUSTRY FUNDAMENTALS ~ Home Pictured: Southern CA @> invitation
Slide 8: Shortage of Housing Supply
Shortage of Housing Supply U.S. Housing Summary 121 Million Households 45 Million Rental Households Single-Family Rental 35% (15.8mm units) Mobile Homes, Etc. yr 5% (2.1mm units) Note: For additional detail, please see notes in the Appendix section. Total Housing Permits (Single and Multifamily) as
Slide 9: Strong Demand
Strong Demand Demand in Invitation Homes markets is forecast to outpace the national average 2016A — 2018E Job Growth CAGR ") 2016E — 2018E Household Formation CAGR (2) 2.4% 2.0% 1.8% 2.0% r | 65% Higher 1 1 Seema cenemce 1.6% 1.6% 1.4% 1980-2016 U.S. Avg. 1.2% 1.2% 1.0% 0.8% 0.8% U.S. Average Invit
Slide 10: Demographics Create a Long Runway for Household Formations
Demographics Create a Long Runway for Household Formations JBREC expects 12.5M net households to form over the next 10 years > Younger generations have shown a higher tendency to rent than own their homes. > 58% of the 12.5 million new households to be formed by 2025 are expected to become renters.
Slide 11: Shifts in Household Composition Align with Our Resident Profile
Shifts in Household Composition Align with Our Resident Profile ident age of 40 years pos Invitation Homes to capture future household growth Current Population by Age Cohort “) (millions of people) 23.0 ' Future ! | Demand | 22.0 Avg. 1H 21.0 Resident Age: 40 20.0 19.0 18.0 15-19 20-24 25-29 30-34
Slide 12: The Invitation Homes Way
Il. THE INVITATION HOMES WAY Home Pictured: South FL 12 a invitation
Slide 13: Growth in IH Markets Significantly Outpacing National Average
Growth in IH Markets Significantly Outpacing National Average High quality homes in desirable neighborhoods drive outsized rent growth and capital appreciation New Lease Rental Rate Growth () Home Price Appreciation (2) (Lease-over-Lease, T12M as of 3/31/17) (Year-over-Year, February 2017) 5.4% 7.8%
Slide 14: Targeted Strategy Utilizing Local Market Knowledge
Targeted Strategy Utilizing Local Market Knowledge Our integrated acqu n platform and local market expertise have guided our investments Home Selection Process (data as of March 31, 2017) Current Portfolio of 47,918 homes Key Underwriting Criteria 1. Location 2. Physical attributes e 3. Total return
Slide 15: Market Scale and In-Fill Locations Are Key Differentiators
Market Scale and In-Fill Locations Are Key Differentiators Southern Califor Seattle Chicago > Number of Homes: 4,610 > Number of Homes: 3,185 > Number of Homes: 2,939 » Total Avg. Rent PSF: $1.30 > Total Avg. Rent PSF: $1.00 > Total Avg. Rent PSF: $1.19 15 , invitation homes
Slide 16: Core Activities In-House From Day One
Core Activities In-House From Day One Acquisitions, renovations, leasing, and asset management have all been run in-house since inception > 700+ local market employees employ a Purposeful differentiated approach leading to superior Acquisitions operating results e 200+ maintenance techs, 100+ leasin
Slide 17: Strong Growth and Performance
ie Strong Growth and Performance Horne Pictured: Seattle, WA 7 @ invitation ores
Slide 18: Attractive Growth and Margin Expansion
Attractive Growth and Margin Expansion NOI growth driven by both revenue growth and operating expense efficiencies Total Portfolio NOI Same Store NOI Same Store Core NOI Margin (S in millions) (S in millions) $155 $140 64.5% 64.0% $130 63.5% $135 $120 63.0% $125 62.5% Qi16 Qi17 FY 2017 Same Store NO
Slide 19: Strong Rent Growth with Consistently Low Turnover
Strong Rent Growth with Consistently Low Turnover High quality portfolio and differentiated operating platform drive strong rent growth and low turnover Same Store Average Monthly Rent $1,700 $1,600 $1,500 Qi 16 Q2 16 Q3 16 Q416 Q117 Same Store Turnover (Annualized) 50% T12 Turnover = 34.9% 33% eee
Slide 20: Other Income Growth
Other Income Growth Early stages of maturation of the business and under-penetration of other income opportunities provide robust growth opportunity Same Store Monthly Other Income per Home $90 $90 $80 $80 $70 $70 $60 $60 FY 15 FY 16 1Q 16 1Q17 Note: For additional detail, please see notes in the Ap
Slide 21: Safe Balance Sheet
Safe Balance Sheet Flexible capital structure, with majority fixed rate debt and es until Q3 2019 () > 78% fixed rate debt with weighted average maturity of 4.7 years (2) > Large undrawn revolver capacity of $1.0 billion as well as $192 million unrestricted cash > Solid cash flow stream, diversified
Slide 22: Favorable 2017 Outlook
Favorable 2017 Outlook Invitation Homes is positioned for another year of outsized growth FY 2017 Guidance Core FFO per common share, diluted AFFO per common share, diluted () Same Store Revenue Growth Same Store Operating Expense Growth Same Store NOI! Growth Same Store Core NOI Margin Note: For ad
Slide 23: Appendix
Appendix @® invitationnomes
Slide 24: Experienced Management Team and Best-in-Class Governance
Experienced Management Team and Best-in-Class Governance residential public company leadership experience Dallas B. Tanner Bruce A. Lavine G. Irwin Gordon Mark A. Solls Chief investment Chief Operations Chief Revenue Chief Legal Officer Officer Officer Officer John B. Bartling Jr. Executive Chairman
Slide 25: Same Store NOI and Same Store Core NOI Margin Reconciliations
Same Store NOI and Same Store Core NOI Margin Reconciliations Reconciliation of Net Loss te NOI, Same Store NOI, and Same Store Core NOI Margin (in thousands) (unaudited) Q1 2017 QI 2016 % Change Net loss $ (42,391) $ (9,975) Interest expense 68,572 70.277 Depreciation and amortization 67,577 65,702
Slide 26: Notes
Notes Page 2 1) Source: John Burns Real Estate Consulting, LLC, sourced April 2017. Page 3 Note: Percentages represent contribution to total revenue in 1017. 1) Source: John Burns Real Estate Consulting, LLC, sourced April 2017. 2) _ Reflects lease-over-lease rent growth for renewal leases signed in
Slide 27: Disclaimer
Disclaimer This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which include, but are not limited to, statements related to the Invitation Homes Inc.’s (the “Company”) expecta