Invitation Homes Inc. · NYSE:INVH
Invitation Homes — NAREIT Presentation November 12-13, 2019
21 slides from Invitation Homes's conference presentation, Nov 12, 2019
Slide 1: NAREIT Presentation November 12-13, 2019
NAREIT Presentation November 12 - 13, 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. Investment Highlights
Southern California I. INVESTMENT HIGHLIGHTS 3
Slide 4: Invitation Homes Investment Highlights
Invitation Homes Investment Highlights “Ready to Run” with a portfolio and platform strategically positioned to pursue multiple growth opportunities • Significant pent up demand in millennial generation likely to move toward single-family rental over the next decade Secular Growth • Barriers to new
Slide 5: Early Stages of a Long-Term Growth Story
Early Stages of a Long-Term Growth Story We are ready to run toward multiple avenues of growth over the next several years 1) Organic Growth Market fundamentals and our differentiated locations, scale, and platform drive opportunity for outsized revenue growth Continued enhancement of processes
Slide 6: Track Record of Outsized Growth
Track Record of Outsized Growth Sector fundamentals and Invitation Homes differentiators are driving consistent outsized growth 2017 SS-Revenue Growth 2018 SS-Revenue Growth 2019 SS-Revenue Growth Guidance Midpoint Invitation Invitation Invitation 4.2% 4.5% 4.4% Homes Homes Homes National National N
Slide 7: 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” >4,700 homes per market Seattle on average 5% Minne- apolis 70% 2% Northern Chicago of revenue from Western California 4% 7%
Slide 8: Best-in-Class Operating & Asset Management Platform
Best-in-Class Operating & Asset Management Platform Local, high-touch service with eyes in markets enhances control over asset quality and the resident experience Central strategy, tools, and oversight Local resident service, leasing, and investment/asset management, with centralized oversight and
Slide 9: Leasing Fundamentals Remain Strong
Leasing Fundamentals Remain Strong LeadingOccupancy investor is well- positionedand operator for the of overleasing 80k offseason, homes inand a sectorrental rate with growth outsized continues growth to prospectsoutpace prior year Same Store Average Occupancy Same Store Blended Rental Rate Growth 5
Slide 10: Seeing More Opportunity for Accretive Acquisitions
Seeing More Opportunity for Accretive Acquisitions Reacted quickly in Q3 2019 to increase buying, using equity to fund acquisitions in excess of dispositions 2019 One-Off Acquisitions Homes acquired 250 230 234 206 200 150 142 98 98 100 88 74 64 65 50 0 Jan Feb Mar Apr May June July Aug Sep Oct 81 H
Slide 11: Committed to Deleveraging
Committed to Deleveraging Focused on reducing leverage alongside accretive external growth; $552M of net debt reduction in YTD 2019 Capital Recycling to Enhance Portfolio Making Progress Towards Investment Grade Compelling market opportunity to prune portfolio and re-deploy Safe balance sheet to
Slide 12: II. Compelling Industry Fundamentals
Seattle II. COMPELLING INDUSTRY FUNDAMENTALS 12
Slide 13: Meeting an Underserved Need in the Housing Market
Meeting an Underserved Need in the Housing Market IH provides a superior experience, but today serves only 0.5% of the growing demand for single-family rentals U.S. Housing Summary (1) Growing Single-Family Rental Demand 125 Million Households Single-Family Rental Households Owned: 64% 17M (80M unit
Slide 14: Demographics to Drive Household Formation
Demographics to Drive Household Formation John Burns Real Estate Consulting expects 12.5M net households to be formed 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 Percenta
Slide 15: Supply is Constrained
Supply is Constrained Shortfall in single-family home construction is likely to continue 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 outpace consumer inflatio
Slide 16: A Great Business to Own Throughout the Economic Cycle
A Great Business to Own Throughout the Economic Cycle Single-family rental performance can be strong regardless of economic trends Scenario: Strong Economic Growth, Higher Rates Scenario: Slower Economic Growth, Lower Rates Job growth could support stronger household formation Economic uncertain
Slide 17: III. The Invitation Homes Way – Leveraging Our Resources to Serve Communities
Las Vegas 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: Glossary (Cont.)
Glossary (Cont.) Same Store / Same Store Portfolio Same Store or Same Store portfolio includes, for a given reporting period, homes that have been stabilized and seasoned (whether under Invitation Homes ownership or Starwood Waypoint Homes ownership), excluding homes that have been sold, homes that
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