Invitation Homes Inc. · NYSE:INVH
Invitation Homes — NAREIT REITworld Investor Conference 2020
19 slides from Invitation Homes's conference presentation, Nov 16, 2020
Slide 1: NAREIT REITworld Investor Conference
NAREIT REITworld Investor Conference November 17 – 18, 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 Record-high Same Store average occupancy of 98.0% (+220 bps YoY) in October, up from 97.8% (+180 bps YoY) in 3Q20 Blended net effective rent
Slide 4: I. Strong Performance Year to Date
Southern California I. STRONG PERFORMANCE YEAR TO DATE 4
Slide 5: "All-Weather" Performer
“All‐Weather” Performer Resident satisfaction scores have continued to climb, and operating results have remained positive in 2020 Positive differentiators for SFR and Invitation Homes Product type: Low-density housing in attractive suburban neighborhoods, with 3+ bedrooms and no shared spaces ▪ D
Slide 6: Record Occupancy and Accelerating Rent Growth
Record Occupancy and Accelerating Rent Growth Operating results have strengthened continuously throughout the year Same Store Average Occupancy Same Store New Lease Rent Rate Growth 2019 2020 98.0% 2019 2020 6.6% 97.8% 97.5% 5.5% 5.2% 4.2% 3.8% 96.7% 2.7% 2.5% 96.5% 96.5% 1.8% 95.9% 95.8% Q1 Q2 Q3 O
Slide 7: Strong Balance Sheet & Liquidity; Delevering Alongside Acquisitions
Strong Balance Sheet & Liquidity; Delevering Alongside Acquisitions ~$1.6B of cash & revolver capacity (1), with no debt maturing prior to 2022; funding external growth with equity Strong balance sheet position as of September 30, 2020: $560M of cash and $1,000M of available capacity on revolving
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 (1) 126 Million Households Single-Family Rental Households Owned: 62% 17M (78M
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 (1) Perc
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 External Growth
Best-in-Class Platform for External Growth IH’s multi-channel approach puts eyes on more opportunities and maximizes selectivity Channel agnostic, location specific Broker/MLS iBuyers Leverage AcquisitionIQ and Positioned to be “buyer broker network to maximize of choice” as the iBuyer deal flow mar
Slide 13: Case Study – Dallas Bulk Transaction
Case Study – Dallas Bulk Transaction Closed a bulk transaction for $59M in Dallas in October at an attractive cap rate with potential NOI upside IH Portfolio Frisco - Plano The bulk transaction was comprised of 273 homes that overlap closely with Dallas Bulk Transaction the Company’s existing port
Slide 14: Joint Venture Diversifies Capital Sources for External Growth
Joint Venture Diversifies Capital Sources for External Growth Rockpoint JV adds $1B of reliable and cost-effective capital to acquire homes and add to economies of scale In October 2020, Invitation Homes and Rockpoint formed a joint venture to acquire and operate single-family rental homes ▪ $375M
Slide 15: Growing Ancillary Services
Growing Ancillary Services We remain on track with our multi-year plan to grow ancillary services to enhance the resident experience Smart Home Update: ▪ Base Smart Home package expanded for 2021 to include video doorbell along with smart lock and smart thermostat ▪ Upgraded Smart Home packages ma
Slide 16: III. Unique IH Competitive Advantages
Las Vegas III. UNIQUE IH COMPETITIVE ADVANTAGES 16
Slide 17: 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 18: 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 2% Northern Chicago household formation in IH California 4% (1) 6% Denver markets versus U.S.
Slide 19: Scale and Eyes in Markets: Atlanta Example
Scale and Eyes in Markets: Atlanta Example Industry-leading scale enables Invitation Homes to operate efficiently with significant local presence in markets Atlanta - 12,510 Homes NW POD Team NE POD Team • 1 Vice President of Operations 3,424 Homes 3,320 Homes • 1 Director of Operations • 1 Rehab/Tu
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