Invitation Homes Inc. · NYSE:INVH
Invitation Homes — Citi Global Property CEO Conference 2018
23 slides from Invitation Homes's conference presentation, Mar 5, 2018
Slide 1: Investor Presentation, Citi Global Property CEO Conference
Together with you, we make a house a home. Investor Presentation March 5 & 6, 2018 Citi Global Property CEO Conference
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 ________________________________________________ Note: For additional detail, please see Notes on page 23. • On track with merger integration plan to realize $45 - 50M of run-rate cost synerg
Slide 5: 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 ________________________________________________ Source: Deutsc
Slide 6: 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 Florida Regions (1) >4,800 Homes per Market on Average >95% of Revenue from Markets with >2,000 Homes (1) 7% Increase in FY 2017 Same Store
Slide 7: Best-in-Class Operating & Asset Management Platform
• Industry leading approach to service, combining in-house, local resident care with centralized oversight and support tools • Innovative technology including Smart Home optionality and proprietary ATLAS property and revenue management system • Collaboration between operations and investment managem
Slide 8: Substantial Identified Cost Synergies from Merger
Merger integration is progressing well and on track with plan Substantial Identified Cost Synergies from Merger Category Est. Annual Run-Rate Savings Description Property-Related Expenses $15.0 – 17.5 million Field operations optimization, insurance savings, and other vendor and subscription service
Slide 9: Pursuing Investment Grade Balance Sheet
Continuing to lower leverage, prolong maturities, and reduce borrowing costs Pursuing Investment Grade Balance Sheet Making Progress Towards Investment GradeLow Cost, Flexible Capital Structure ► No debt maturities until 2020(1) ► ~80% fixed rate or swapped to fixed rate debt ► Flexible capital stac
Slide 10: 2018 Operational Priorities
2018 Operational Priorities Execute operationally to further enhance the quality of service we provide to residents2 Continue to deliver strong operating results1 Execute on our integration plan to realize the value we indicated for residents, team members, and shareholders3 Recycle capital4 • Enhan
Slide 11: II. Compelling Industry Fundamentals
Seattle II. COMPELLING INDUSTRY FUNDAMENTALS 11
Slide 12: Favorable Macro Fundamentals
Supply-demand remains supportive of growth, especially in Invitation Homes markets Favorable Macro Fundamentals ________________________________________________ Source: Company public filings, Moody’s, John Burns, and BLS. Note: For additional detail, please see Notes on page 23. Projected Household
Slide 13: Demographics Create a Long Runway for Household Formations
JBREC expects 12.5M net households to form over the next 10 years Demographics Create a Long Runway for Household Formations ________________________________________________ Source: John Burns Real Estate Consulting (JBREC) – Demographic Trends and the Outlook for Single Family Rentals, April 2017.
Slide 14: Single-Family Rental Positioned to Take Incremental Market Share
21.1 22.7 22.5 21.7 20.4 20.2 20.9 18.0 19.0 20.0 21.0 22.0 23.0 15-19 20-24 25-29 30-34 35-39 40-44 45-49 Age and lifestyle needs of renter base positions Single-Family Rentals to capture household growth Single-Family Rental Positioned to Take Incremental Market Share Avg. IH Resident Age: 40 Curr
Slide 15: III. The Invitation Homes Way
Denver III. THE INVITATION HOMES WAY – LEVERAGING OUR RESOURCES TO SERVE COMMUNITIES 15
Slide 16: Our Mission, Vision, and Values
Together with you, we make a house a home. Mission Our Mission, Vision, and Values 16 Be the premier choice in home leasing by continuously enhancing our residents’ living experience. ValuesVision Unshakeable Integrity We hold ourselves accountable to act with honesty, trust and respect. Genuine Car
Slide 17: Positive Impact on Residents and Communities
Providing a high quality leasing experience for families and improving communities Positive Impact on Residents and Communities $2 billion investment rehabilitating homes $267 million annual local taxes supporting communities $223 million annually to maintain homes for residents $32 million
Slide 18: IV. Appendix
‘Orlando= IV. APPENDIX 18 @ invitationomes
Slide 19: Non-GAAP Reconciliations: Invitation Homes
19 Non-GAAP Reconciliations Invitation Homes Reconciliation of Net Loss to NOI and Same Store NOI — IH, Full Year (in thousands) (unaudited) FY 2017 FY 2016 % Change Net loss available to common shareholders (105,952)$ (78,239)$ Net loss available to participating securities 615 — Non-controlling in
Slide 20: Non-GAAP Reconciliations: Legacy Starwood Waypoint Homes
20 Non-GAAP Reconciliations Legacy Starwood Waypoint Homes Reconciliation of Net Loss to NOI and Same Store NOI — Legacy SWH, Full Year (in thousands) (unaudited) FY 2017 % Change NOI (total portfolio) 662,961$ Non-Same Store NOI (69,364) IH Same Store NOI (550,595) Pre-merger Legacy SWH Same Store
Slide 21: 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 (1) 4% - 5% Same Store Core operating expense growth (1) 2% - 3% Same Store N
Slide 22: Glossary
Glossary 22 Core NOI Margin Core NOI margin for an identified population of homes is calculated by dividing NOI by Core revenues attributable to such population. Core Revenues Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries and/or bad debt
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
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