Invitation Homes Inc. · NYSE:INVH
Invitation Homes — NAREIT Presentation November 2017
27 slides from Invitation Homes's conference presentation, Nov 14, 2017
Slide 1: NAREIT Presentation November 2017
Together with you, we make a house a home. NAREIT Presentation November 2017
Slide 2: Disclaimer
2 Disclaimer This presentation may include forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Invitation Ho
Slide 3: I. Executive Summary
3 I. EXECUTIVE SUMMARY Home Pictured: Seattle, WA Confidential
Slide 4: Investment Highlights
4 Investment Highlights Highly Synergistic Combination of Two Premier Portfolios and Operating Platforms ________________________________________________ Note: For additional detail, please see notes in the Appendix section. • Bringing together the best processes, people, and technology from two ind
Slide 5: Premier Single-Family Portfolio
5 Premier Single-Family Portfolio Unmatched scale focused in strategically-selected high-growth locations Overlapping Markets Seattle 5% Minne- apolis 2% Denver 3% Dallas 3% Houston 3% Phoenix 6% Atlanta 13% Chicago 5% Tampa 10% Southern California 13% Las Vegas 3% South Florida 14% Non-Overlapping
Slide 6: Preeminent Operating & Asset Management Platform
6 Preeminent Operating & Asset Management Platform Highly complementary and innovative platforms with substantial operating synergies (1) • Industry leading approach to customer service • ProCare service and maintenance • Local market expertise • Industry leading investment team and
Slide 7: Bringing Together the Best of Two Accomplished Leadership Teams
Bringing Together the Best of Two Accomplished Leadership Teams Premier Leadership Team 7 Legacy Invitation Homes Legacy Starwood Waypoint Homes Experience • Current Executive Chairman, Invitation Homes • AvalonBay Communities (NYSE: AVB) • Trammell Crow Residential • Current Board Positions: PulteG
Slide 8: II. Compelling Industry Fundamentals
II. COMPELLING INDUSTRY FUNDAMENTALS 8
Slide 9: Favorable Macro Fundamentals
Supply-demand remains supportive of growth 9 Favorable Macro Fundamentals ________________________________________________ Source: Company public filings, Moody’s, John Burns, and BLS. Note: For additional detail, please see notes in the Appendix section. Total Single Family Completions (% of househ
Slide 10: Demographics Create a Long Runway for Household Formations
JBREC expects 12.5M net households to form over the next 10 years 10 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 201
Slide 11: 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 11 Single-Family Rental Positioned to Take Incremental Market Share Avg. IH Resident Age: 40 C
Slide 12: III. Merger Beneficial to All Shareholders
Home Pictured: Orlando, FL 12 III. MERGER BENEFICIAL TO ALL SHAREHOLDERS Confidential
Slide 13: Uniquely Strategic and Beneficial Combination
Combining two industry pioneers, creating a world-class residential REIT 13 Uniquely Strategic and Beneficial Combination ► The premier portfolio in the single-family rental sector ► Unparalleled scale and focus on high-growth locations ► Substantial cost synergies to come from portfolio overlap and
Slide 14: Portfolios are Nearly Identical on Major Metrics
Portfolios are Nearly Identical on Major Metrics 14 True Merger of Equals – Compelling Strategic Logic Average Rent PSF Blended Same Store Rent Growth (2) Same Store Occupancy(3) % of Revenue Generated in Western U.S. and Florida Locations(1) Average Monthly Rent(1) $0.90 +4.6% 95.1% 63% $1,654 $0.9
Slide 15: Unmatched Scale in High-Growth Markets
Scale Within Markets Is Critical to Operating Efficiency 15 Unmatched Scale in High-Growth Markets ________________________________________________ Note: For additional detail, please see notes in the Appendix section. Total Home Count as of September 30, 2017 Combined Top 10 Markets (Sorted by Reve
Slide 16: Positive Impact on Residents and Communities
Providing a High Quality Leasing Experience for Families and Improving Communities 16 Positive Impact on Residents and Communities ________________________________________________ Note: For additional detail, please see notes in the Appendix section. $1.8 billion Investment Rehabilitating Homes(1)
Slide 17: Accretive Efficiencies and Cost Synergies
Accretive Efficiencies and Cost Synergies (1) 17 Substantial Identified Cost Synergies (1) ________________________________________________ Note: For additional detail, please see notes in the Appendix section. Category Est. Annual Run-Rate Savings Description Property-Related Expenses $15.0 – 17.5
Slide 18: Low-Cost, Flexible Capital Structure
Flexible capital structure with diversity of capital sources and increased liquidity 18 Low-Cost, Flexible Capital Structure ________________________________________________ Source: Company public filings. Note: For additional detail, please see notes in the Appendix section. Predominantly Fixed Rat
Slide 19: Path to Potential Index Inclusion Expected to Drive Enhanced Liquidity
Path to Potential Index Inclusion Expected to Drive Enhanced Liquidity (1) 19 Invitation Homes – a Blue Chip Residential REIT REITs Currently Included in S&P 500 Index (2) ($ in billions) Largest Residential REITs (Total Number of Consolidated Units as of September 30, 2017) 100k 82k 80k 77k 50k 49k
Slide 20: IV. Strong Growth and Performance
IV. STRONG GROWTH AND PERFORMANCE 20
Slide 21: Attractive Internal Growth
8.1% 6.7% 2.5% Invitation Homes Starwood Waypoint Homes Multifamily Peers 4.7% 4.3% 2.5% Invitation Homes Starwood Waypoint Homes Multifamily Peers 21 Attractive Internal Growth Favorable supply-demand, strong execution, and efficiency gains continue to drive outsized growth Same Store Revenue Growt
Slide 22: Strong Rent Growth with Low Turnover
35% 36% 51% Invitation Homes Starwood Waypoint Homes Multifamily Peers 4.3% 4.4% 2.4% Invitation Homes Starwood Waypoint Homes Multifamily Peers 22 Strong Rent Growth with Low Turnover Quality of portfolio and resident service enable strong rent growth and low turnover Same Store Blended Net Effecti
Slide 23: IV. Appendix
23Home Pictured: Southern CA IV. APPENDIX
Slide 24: Non-GAAP Reconciliations Invitation Homes
24 Non-GAAP Reconciliations Invitation Homes Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues (in thousands) (unaudited) Q3 2017 Q3 2016 % Change Total revenues (total portfolio) 243,536$ 233,038$ Non-Same Store total revenues (23,127) (22,539) Total revenue
Slide 25: Non-GAAP Reconciliations Starwood Waypoint Homes
25 Non-GAAP Reconciliations Starwood Waypoint Homes Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues (in thousands) (unaudited) Q3 2017 Q3 2016 % Change Total revenues (total portfolio) 169,687$ 146,099$ Non-Same Store total revenues (34,172) (17,069) Total
Slide 26: Notes Page
26 Notes Page 4 Note: Unless otherwise noted, all information is as of September 30, 2017. Source: Company public filings, Moody’s Analytics, John Burns Real Estate Consulting. 1) Based on Total Homes in Invitation Homes and Starwood Waypoint Homes markets, excluding 798 Starwood Waypoint Homes home
Slide 27: Notes Page
27 Notes Page 18 Note: Unless otherwise noted, all information is as of September 30, 2017. Source: Company public filings. 1) Net Debt is net of retained and repurchased certificates, cash, and restricted cash (excluding security deposits). EV is calculated based on total diluted shares outstanding