Invitation Homes Inc. · NYSE:INVH
Invitation Homes — NAREIT Presentation June 2019
23 slides from Invitation Homes's conference presentation, Jun 3, 2019
Slide 1: NAREIT Presentation June 4-5, 2019
NAREIT Presentation June 4 - 5, 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 • More affordable to rent a sing
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 (Column bars) Single Family Rental is a Uniquely Attractive Asset Class 7.5% Strong supply/demand and demographic fundamentals driving both cash flow and asse
Slide 6: Well-Positioned for Peak Season
Well-Positioned for Peak Season LeadingHigh occupancy investor enables and operator portfolio of over to capture 80k homes strong in marketa sector rent with growth outsized growth prospects Same Store Average Occupancy Same Store Blended Rental Rate Growth 2018 2019 2018 2019 5.5% 5.3% 96.6% 5.1% 9
Slide 7: Strong Leasing Momentum
Strong Leasing Momentum Renewal and new lease blended rent growth outpacing prior year Same Store Renewal Rental Rate Growth Same Store New Lease Rental Rate Growth 2018 2019 2018 2019 5.6% 5.5% 5.4% 5.4% 5.0% 5.2% 5.1% 4.6% 5.0% 4.5% 5.0% 4.4% 4.8% 4.6% 4.6% 3.8% 3.6% 2.7% 2.4% 0.9% Jan Feb Mar Apr
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 1% 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 6.9% Minne apolis 2.7% Northern Chicago California 0.6% 8.4% Denver 4.5% Las Southern Vegas 6.0% California Carolinas 6.7% Nashville 1.7% Phoenix 1.3%
Slide 10: West is Best – Average Occupancy by Market
West is Best – Average Occupancy by Market Strong occupancy across all markets positions Invitation Homes well for peak season Seattle 96.9% Minne apolis 96.5% Northern Chicago California 96.6% 97.2% Denver 96.1% Las Southern Vegas 97.1% California Carolinas 96.7% Nashville 96.6% Phoenix 96.2% 97.2%
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 Total Single Family Permits (Household Growth, 2019e) (% of households) 1.8% 1.9% 1.0% 0.8% (1) U.S. Average Invitation Homes Markets 1985 - 2018 Average
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: 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 Monthly Single-Fa
Slide 17: 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 18: 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 19: III. The Invitation Homes Way – Leveraging Our Resources to Serve Communities
Denver III. THE INVITATION HOMES WAY – LEVERAGING OUR RESOURCES TO SERVE COMMUNITIES 19
Slide 20: 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 21: 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 22: 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 23: Notes
Notes Page 12 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 14 1) Weighted by total homes in each Invitation Homes market, as of March 31, 2019. Page 16 1) For both ownership and