Invitation Homes Inc. · NYSE:INVH
Invitation Homes — Nareit REITweek Investor Conference 2020
28 slides from Invitation Homes's conference presentation, Jun 1, 2020
Slide 1: Nareit REITweek Investor Conference
Nareit REITweek Investor Conference June 2 – 3, 2020 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, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Comp
Slide 3: Key Takeaways and Updates
Key Takeaways and Updates Invitation Homes is positioned favorably for both near-term stability and long-term growth 1) Business continues to perform well amid COVID-19 Rent collections 97% of historical average in May, up from April’s 95% Same Store average occupancy increased to another record
Slide 4: I. Strong Performance Amid COVID-19 to Date
Southern California I. STRONG PERFORMANCE AMID COVID-19 TO DATE 4
Slide 5: COVID-19 Response Update
COVID-19 Response Update Resident satisfaction scores have continued to climb, and operating results have remained positive so far We acted early in response to COVID-19 to prioritize the wellbeing of residents and associates: COVID-specific safety measures were implemented in mid-March, such as l
Slide 6: Record Occupancy and Healthy Rent Collection
Record Occupancy and Healthy Rent Collection LeadingOperating investor results strengthened and operator further of over in May;80k homesrent collection in a sector rate upwith 2% outsized (~$6M) from growth April prospects to May Same Store Average Occupancy Revenue Collected % of Revenue Due (1) 2
Slide 7: Strong Liquidity & Safe Balance Sheet
Strong Liquidity & Safe Balance Sheet ~$1.1B of cash & revolver capacity, with no debt maturing prior to 2022 and minimal investment commitments Strong balance sheet position as of April 30, 2020: (1) $225M of cash and $850M of available capacity on revolving line of credit (significant cushion to
Slide 8: II. Highly Compelling Long-Term Growth Story
Seattle II. HIGHLY COMPELLING LONG-TERM GROWTH STORY 8
Slide 9: 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 126 Million Households Single-Family Rental Households Owned: 62% 17M (78M unit
Slide 10: 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 11: Supply is Constrained
Supply is Constrained Shortfall in single-family home construction is likely to continue Rising labor costs, materials costs, impact fees, and regulatory hurdles have been barriers to supply over the last decade Replacement cost increases for single-family housing have outpaced consumer inflatio
Slide 12: Best-in-Class Platform for Future External Growth
Best-in-Class Platform for Future External Growth Currently paused on new acquisitions, but disciplined process drives potential to enhance portfolio over time IH’s multi-channel approach puts eyes on more opportunities and maximizes selectivity Broker/MLS iBuyers Leverage AcquisitionIQ and Position
Slide 13: Value Enhancing Capex Opportunity
Value Enhancing Capex Opportunity Reinvesting in homes to simultaneously enhance resident loyalty, risk-adjusted returns, and asset durability Increased resident Scale loyalty Value Enhancing Data Double-digit NOI Project Scope yield on investment Experience in Markets Enhanced asset quality & durab
Slide 14: Ancillary Services Opportunity
Ancillary Services Opportunity We are in the very early stages of what the resident experience could look like Current State High-Priority Focus Initiatives Future Vision / Blue Sky Reliable “genuine care” that creates Enhanced leasing lifestyle that extends Leading edge service provider to SF
Slide 15: III. Unique IH Competitive Advantages
Las Vegas III. UNIQUE IH COMPETITIVE ADVANTAGES 15
Slide 16: Differentiated Portfolio and Platform
Differentiated Portfolio and Platform IH is strategically positioned around three pillars that enhance growth and the resident experience Outsized Growth and Unparalleled Resident Experience Location Scale Eyes in Markets • >70% of portfolio in • Almost 5,000 homes per • 17 in-house investment Weste
Slide 17: Location: High-Growth Markets
Location: High-Growth Markets High-growth markets; In-fill neighborhoods with proximity to jobs, transportation, and schools >70% of revenue from Western Seattle U.S. and Florida 6% Minne- apolis 2x greater 1% Northern Chicago household formation in IH California 4% (1) 7% Denver markets versus U.S.
Slide 18: Scale and Eyes in Market: Atlanta Example
Scale and Eyes in Market: Atlanta Example Industry-leading scale enables Invitation Homes to operate efficiently with significant local presence in markets Atlanta - 12,494 Homes NW POD Team NE POD Team • 1 Vice President of Operations 3,400 Homes 3,314 Homes • 1 Director of Operations • 1 Rehab/Tur
Slide 19: Wide Moat Around Competitive Advantages
Wide Moat Around Competitive Advantages Our portfolio and platform took years of experience to build Building America’s Preeminent Single-Family Rental REIT: Platform Merger Integration Well-Positioned for Aggregation Innovation and Optimization and Refinement the Future Stabilization • Local expert
Slide 20: IV. Putting It All Together
Atlanta IV. PUTTING IT ALL TOGETHER 20
Slide 21: Stronger Growth Profile vs. Peers
Stronger Growth Profile vs. Peers Fundamentals and Invitation Homes differentiators are driving consistent outperformance in organic growth 2017 SS-NOI Growth (1) 2017 - 2019 Average SS-NOI Growth (1)(2) Invitation 7.4% 6.0% Homes 5.8% National 3.5% Residential 5.5% 5.0% Coastal 2.9% Residential (1)
Slide 22: 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- Over $2 billion investment rehabilitating homes to date house local ma
Slide 23: Attractive SFR Risk Profile
Attractive SFR Risk Profile We believe outsized LT growth prospects and a favorable risk profile should drive a premium valuation for SFR Long-term Positive Differentiators for Investment Risk Significant diversification of assets within portfolio Value to both investors and owner-occupants (dis
Slide 24: Investment Highlights
Investment Highlights Leading investor and operator of ~80k homes, positioned for both near-term stability and long-term growth • Record-high occupancy amid COVID-19 (Same Store avg occupancy of 97.5% in May), with strong demand in IH markets Successful COVID Response • May rent collections 97% of h
Slide 25: V. Non-GAAP Reconciliations
Denver V. NON-GAAP RECONCILIATIONS 25
Slide 26: Reconciliation of Same Store NOI Growth – 2019 Same Store Pool
Reconciliation of Same Store NOI Growth – 2019 Same Store Pool Reconciliation of Net Income (Loss) to NOI and Same Store NOI, 2019 Same Store Pool (in thousands) (unaudited) FY 2019 FY 2018 Growth Net income (loss) available to common stockholders $ 145,068 $ (5,744) Net income available to particip
Slide 27: Reconciliation of Same Store NOI Growth – 2018 Same Store Pool
Reconciliation of Same Store NOI Growth – 2018 Same Store Pool Reconciliation of Net Income (Loss) to NOI and Same Store NOI, 2018 Same Store Pool (in thousands) (unaudited) FY 2018 FY 2017 Growth Net loss available to common stockholders $ (5,744) $ (105,952) Net income available to participating s
Slide 28: Reconciliation of Same Store NOI Growth – 2017 Same Store Pool
Reconciliation of Same Store NOI Growth – 2017 Same Store Pool Reconciliation of Net Income (Loss) to NOI and Same Store NOI, 2017 Same Store Pool (in thousands) (unaudited) FY 2017 FY 2016 Growth Net loss available to common shareholders $ (105,952) $ (78,239) Net loss available to participating se
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