Invitation Homes Inc. · NYSE:INVH
Invitation Homes — Investor Presentation (May 2018)
23 slides from Invitation Homes's investor presentation, May 17, 2018
Slide 1: Investor Presentation May 2018
Investor Presentation May 2018 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 Preeminent investor and operator of 83k homes in a sector with unmatched growth prospects • 12.5M net households to form over the next 10 years; single-family supply growth remains low(1) Outsized Growth • Millennial generation beginning to reach the age where lifestyle and lifest
Slide 5: 2018 Operational Priorities
2018 Operational Priorities Operational priorities for 2018 are focused on execution 2018 Operational Priorities Targeted Outcomes/Benefits • 4 – 5% Same Store Core revenue growth 1 Continue to deliver strong operating results • 5 – 6% Same Store NOI growth • Enhance options for consumers who wish t
Slide 6: Outsized Growth Prospects and Attractive Risk Profile
Outsized Growth Prospects and Attractive Risk Profile INVH offers an opportunity to own the premier portfolio and platform in a highly compelling asset class with significant growth potential, at a significant discount to embedded value 2018 SS-NOI Growth Guidance (1) Single Family Rental is a Uniqu
Slide 7: Premier Single-Family Portfolio
Premier Single-Family Portfolio Unmatched scale and density focused in strategically-selected high-growth locations 70% of Revenue Generated in Western U.S. and Seattle Florida Regions 5% Minne- apolis 2% >4,800 Northern Chicago California Homes per Market 5% on Average 7% Denver 3% Las Vegas Southe
Slide 8: Best-in-Class Operating & Asset Management Platform
Best-in-Class Operating & Asset Management Platform Innovative platform combining industry-leading people, practices, and technology Proprietary ProCare Service • Industry leading approach to service, combining in-house, local resident care with centralized oversight and support tools • Innovative
Slide 9: Strong Revenue Momentum into Peak Leasing Season
Strong Revenue Momentum into Peak Leasing Season Occupancy is well positioned and rent growth is accelerating heading into peak season Same Store Average Occupancy Same Store New Lease Rental Rate Growth 96.1% 4.5% 96.0% 3.8% 95.8% 2.5% 95.4% 0.9% Jan 18 Feb 18 Mar 18 Apr 18 Jan 18 Feb 18 Mar 18 Apr
Slide 10: Merger Integration Remains on Track
Merger Integration Remains on Track On track to deliver benefits committed to residents, team members, and shareholders Key Integration Milestones Status 1 Transition residents seamlessly upon merger close with uninterrupted service quality Complete 2 Finalize go-forward operating model and strate
Slide 11: Pursuing Investment Grade Balance Sheet
Pursuing Investment Grade Balance Sheet Continuing to lower leverage, prolong maturities, and reduce borrowing costs Low Cost, Flexible Capital Structure Making Progress Towards Investment Grade ► No debt maturities until 2020(1) ► Recent refinancings have further strengthened our balance sheet: 3/3
Slide 12: II. Compelling Industry Fundamentals
Seattle II. COMPELLING INDUSTRY FUNDAMENTALS 12
Slide 13: Favorable Macro Fundamentals
Favorable Macro Fundamentals Supply and demand remain supportive of growth, especially in Invitation Homes markets Projected Household Formations Total Single Family Completions (Household Growth, 2018e) (% of households) 1.9% 1.8% 1.3% 1.0% U.S. Average Invitation Homes Markets(1) 1985 - 2017 Avera
Slide 14: 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 12.5M net new households to be formed by 2025 are expected to be renters (1) 2016
Slide 15: Single-Family Rental Positioned to Take Incremental Market Share
Single-Family Rental Positioned to Take Incremental Market Share Age and lifestyle needs of renter base positions Single-Family Rentals to capture household growth Current Population by Age Cohort Comparing the United States’ 16 Million Single-Family (millions of people) Renters to its 28 Million Mu
Slide 16: III. The Invitation Homes Way
Denver III. THE INVITATION HOMES WAY – LEVERAGING OUR RESOURCES TO SERVE COMMUNITIES 16
Slide 17: 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 18: 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 house local management and
Slide 19: Appendix
APPENDIX IV. @ invitationromes
Slide 20: 2018 Guidance
2018 Guidance Invitation Homes is positioned for another year of outsized growth FY 2018 Guidance Core FFO per common share, diluted $1.13 - $1.21 AFFO per common share, diluted $0.94 - $1.02 Same Store Core revenue growth 4% - 5% Same Store Core operating expense growth 2% - 3% Same Store NOI growt
Slide 21: Glossary
Glossary Adjusted EBITDAre EBITDA, EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States
Slide 22: 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 for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established, excluding homes that have been sold
Slide 23: Notes
Notes Page 4 1) Household formation forecast source: John Burns Real Estate Consulting (JBREC) – Demographic Trends and the Outlook for Single Family Rentals, April 2017. 2) REIT industry average guidance source: Deutsche Bank Global Investment Banking. REIT industry average represents the weighted