Invitation Homes Inc. · NYSE:INVH
Invitation Homes — Investor Day (October 2019)
98 slides from Invitation Homes's investor day presentation, Oct 4, 2019
Slide 1: Investor & Analyst Day: Ready to Run
Investor & Analyst Day October 4, 2019 “Ready to Run” Together with you, we make a house a home.
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements 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 a
Slide 3: Introductory remarks and agenda
Las Vegas READY TO RUN Introductory remarks and agenda 3
Slide 4: Ready to Run
Ready to Run Invitation Homes (IH) is ready to lead the next leg of the single-family rental growth story Favorable industry fundamentals; early stages of a long-term growth story Strategically positioned IH locations and scale that create a moat and enhance growth opportunities Innovative tea
Slide 5: A Track Record of Growth and Value Creation
A Track Record of Growth and Value Creation Invitation Homes is Ready to Run Platform Innovation Merger Integration Aggregation Optimization Ready to Run and Stabilization and Refinement • Invested home-by-home to • Built efficient platform • Incorporated robust revenue • Combined the best of two •
Slide 6: Today You Will Hear From our Experienced Executive Team
Today You Will Hear From our Experienced Executive Team... Invitation Homes has a deep and experienced team with a track record of innovation and execution Dallas Tanner Ernie Freedman Charles Young President, Chief EVP, Chief EVP, Chief Executive Officer Financial Officer Operating Officer 7 year
Slide 7: And From Our Deep Team of Best-in-Class Senior Leaders
... And From Our Deep Team of Best-in-Class Senior Leaders Invitation Homes has a deep and experienced team with a track record of innovation and execution Investing and Asset Management Operations John Gibson Peter DiLello Dan Scanlon Tim Lobner Jiggs Foster Angie Luna Alicia Macphee EVP, Portfolio
Slide 8: Agenda
Agenda I. Surveying the Track What is our opportunity? Pg 9 The Macro Opportunity Pg 10 Our Strategic Position and Competitive Advantages Pg 18 II. It Must Be the Shoes How the platform we have built positions us to maximize our opportunity Pg 25 Introduction to “The Invitation Homes Way” Pg 26 The
Slide 9: I. Surveying the Track
Southern California I. SURVEYING THE TRACK What is our opportunity? 9
Slide 10: The Macro Opportunity
The Macro Opportunity 10 e invitation homes
Slide 11: 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 125 Million Households Single-Family Rental Households Owned: 64% 17M (80M unit
Slide 12: 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 Percenta
Slide 13: SFR Is Likely to Continue Capturing a Large Share of HH Formations
SFR Is Likely to Continue Capturing a Large Share of HH Formations Trends in consumer preference and affordability continue to move toward rentership versus homeownership IH offers high-quality homes and service in attractive neighborhoods, without the commitment of homeownership U.S. Renters’ Vie
Slide 14: Supply is Constrained
Supply is Constrained Shortfall in single-family home construction is likely to continue 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 outpace consumer inflatio
Slide 15: Barriers to New Supply are Higher at Our Price Points
Barriers to New Supply are Higher at Our Price Points Rising input costs have pushed homebuilders to focus on larger homes at higher price points Invitation Homes’ portfolio competes primarily at the in-fill “move-up” home segments of the housing market ▪ Average purchase price on new acquisitions
Slide 16: A Great Business to Own Throughout the Economic Cycle
A Great Business to Own Throughout the Economic Cycle Single-family rental performance can be strong regardless of economic trends Scenario: Strong Economic Growth, Higher Rates Scenario: Slower Economic Growth, Lower Rates Job growth could support stronger household formation Economic uncertain
Slide 17: Differentiated Asset Class Deserves Premium Valuation
Differentiated Asset Class Deserves Premium Valuation We believe outsized growth prospects and a favorable risk profile should drive a premium valuation for SFR Single-Family Rental is a uniquely attractive asset class that warrants premium valuation versus other sectors Strong long-term supply/de
Slide 18: Our Strategic Position and Competitive Advantages
Our Strategic Position and Competitive Advantages 18
Slide 19: 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 Western • Over 4,700 homes per • 18 in-house investment
Slide 20: 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 5% Minne- apolis 2x greater 2% Northern Chicago household formation in IH California 4% 7% Denver markets versus U.S. avg
Slide 21: Location: Stronger Demand Drivers in Invitation Homes' Markets
Location: Stronger Demand Drivers in Invitation Homes’ Markets Household formations and job growth in Invitation Homes markets are outpacing the national average Projected Household Formations Projected Job Growth (Household Growth, 2019e) (Job Growth, 2019e) 2.1% 1.8% 1.3% 0.8% U.S. Average Invitat
Slide 22: Scale: Significant Density in In-fill Submarkets
Scale: Significant Density in In-fill Submarkets Industry-leading scale with an average of over 4,700 homes per market clustered in in-fill submarkets Southern California Seattle Phoenix Number of Homes: 8,163 Number of Homes: 3,412 Number of Homes: 7,592 Avg. Monthly Rent: $2,397 Avg. Mon
Slide 23: Eyes in Markets: Best-in-Class Platform with Local Management
Eyes in Markets: Best-in-Class Platform with Local Management Local, high-touch service with eyes in markets enhances control over asset quality and the resident experience Central strategy, tools, and oversight Local resident service, leasing, and investment/asset management, with centralized ove
Slide 24: Differentiators Drive Results
Differentiators Drive Results Location, scale, and eyes in markets drive consistent outsized growth 2017 SS-Revenue Growth 2018 SS-Revenue Growth 2019 SS-Revenue Growth Guidance Midpoint Invitation Invitation Invitation 4.2% 4.5% 4.3% Homes Homes Homes National National National 3.0% 2.6% 3.5% Resid
Slide 25: II. It Must Be the Shoes
Seattle II. IT MUST BE THE SHOES How the platform we have built positions us to maximize our opportunity 25
Slide 26: Introduction to "The Invitation Homes Way"
Introduction to “The Invitation Homes Way” 26
Slide 27: 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 28: Real Resident Stories – The Invitation Homes Experience
Real Resident Stories – The Invitation Homes Experience 28
Slide 29: Best in Class and Built to Last
Best in Class and Built to Last We have thoughtfully constructed an operating platform that we believe combines best-in-class people, processes, and technology to efficiently deliver an unparalleled resident experience Investment Operations Management Revenue Field Operations Corporate Operations Ma
Slide 30: The Local Difference – Atlanta Example
The Local Difference – Atlanta Example Economies of scale and technology enable us to operate efficiently with significant local presence in markets Atlanta - 12,430 Homes NW POD Team NE POD Team • 1 Vice President of Operations 3,351 Homes 3,296 Homes • 1 Director of Operations • 1 Rehab/Turn/R&M D
Slide 31: Curating The Resident Journey
Curating The Resident Journey The sections that follow will walk through how we curate each step of the resident journey Differentiated Approach Proactive, resident-centric philosophy Acquisition or Local management empowered by central tools Rebuy of the Scale in markets to enhance efficiency
Slide 32: The IH Way – Acquisition/Rebuy and Make-Ready of the Home
The IH Way – Acquisition/Rebuy and Make-Ready of the Home Acquisition or Rebuy of the Home Resident Make-Ready of Service and the Home ProCare Revenue Mgmt and Customer Acquisition 32
Slide 33: The Acquisition Engine: Locally Driven, Centrally Supported
The Acquisition Engine: Locally Driven, Centrally Supported IH combines local expertise with central support and technology to drive a multi-channel investment approach In-Market Investment Directors Centralized Support and Technology Local experts with average IH tenure Proprietary “Acquisition
Slide 34: Channel Agnostic, Location Specific
Channel Agnostic, Location Specific Participation in multiple channels puts eyes on more opportunities and maximizes selectivity across sources Multi-Channel Acquisition Approach Broker/MLS iBuyers Leverage AcquisitionIQ and Positioned to be “buyer broker network to maximize of choice” as the iBuyer
Slide 35: We See Everything, but Buy with Discipline
We See Everything, but Buy with Discipline Combination of technology and local eyes on assets enables disciplined buying from a large opportunity set Multi-channel approach maximizes 1 opportunity set We source a wide set of initial opportunities by leveraging multiple channels: MLS, broker networks
Slide 36: Market Analysis Methodology
Market Analysis Methodology MarketAnalysis “Macro to micro” approach to managing the portfolio across markets, submarkets, and neighborhoods Neighborhoods Submarkets Markets Property Property characteristics Location scores HOA (dues, amenities) Municipal factors (property
Slide 37: The IH Way – Revenue Management and Customer Acquisition
The IH Way – Revenue Management and Customer Acquisition Acquisition or Rebuy of the Home Resident Make-Ready of Service and the Home ProCare Revenue Mgmt and Customer Acquisition 37
Slide 38: Revenue Management is a Collaborative Effort
Revenue Management is a Collaborative Effort Constant feedback loop between field teams and central teams is critical to maximizing revenues Revenue management tool sets pricing recommendation Field teams and Feedback from revenue mgmt. field and central counterparts teams is monitor demand incorpor
Slide 39: Central Pricing Tools are Rooted in Objective Data
Central Pricing Tools are Rooted in Objective Data Leveraging technology and artificial intelligence to build a smarter revenue management system ► Fully automated pricing model leveraged by central revenue management team ▪ Multiple internal, external, macro, and micro inputs to triangulate more re
Slide 40: Leasing in Action – Central Pricing Recommendation
Leasing in Action – Central Pricing Recommendation Initial pricing recommendation set by algorithm based on numerous internal, external, macro, and micro inputs Rev Mgmt. Team Field Team Sets Price Activity Monitored by Application and Lease Recommends Price and Markets Home Central and Field Teams
Slide 41: Leasing in Action – Field Team Pricing Input
Leasing in Action – Field Team Pricing Input Field team adds pricing input based on on-the-ground insight and markets homes through multiple channels Rev Mgmt. Team Field Team Sets Price Activity Monitored by Application and Lease Recommends Price and Markets Home Central and Field Teams Field tea
Slide 42: Leasing in Action – Monitoring and Adjustment
Leasing in Action – Monitoring and Adjustment Listings activity monitored by both central and field teams, and pricing adjusted as necessary Rev Mgmt. Team Field Team Sets Price Activity Monitored by Application and Lease Recommends Price and Markets Home Central and Field Teams Activity at both t
Slide 43: Leasing in Action – Application and Lease Options
Leasing in Action – Application and Lease Options Lease options offered dynamically based on expiration curves Rev Mgmt. Team Field Team Sets Price Activity Monitored by Application and Lease Recommends Price and Markets Home Central and Field Teams Applicants are offered multiple lease terms with
Slide 44: The IH Way – Resident Service and ProCare
The IH Way – Resident Service and ProCare Acquisition or Rebuy of the Home Resident Make-Ready of Service and the Home ProCare Revenue Mgmt and Customer Acquisition 44
Slide 45: Resident Service: An Exercise in Creativity
Resident Service: An Exercise in Creativity IH is obsessed with two pillars that drive our service philosophy: resident experience and operational efficiency; both require creative solutions to optimize Resident Experience Provide a unique leasing lifestyle that reflects our genuine care for each
Slide 46: Expense Management Philosophy
Expense Management Philosophy The most impactful expense management activity is to properly set expectations with residents Price Impact Level: Low Amount paid for a specific material or service Leverage buying power and maximize use of internal resources Scope Impact Level: Moderate Bread
Slide 47: The ProCare Lifecycle
The ProCare Lifecycle ProCare proactive maintenance program designed to optimize each touch point with the resident and/or asset Move-in Move-out Work Order Initial ProCare ProCare General ProCare ProCare Move Out Showing / Resident 45-Day Property 6-Month Pre-Move Inspection / Leasing Orientation M
Slide 48: The Right Local Staffing drives the Right Service Experience
The Right Local Staffing drives the Right Service Experience Market scale allows for proper local staffing structure to support rehab, turn, and maintenance operations Regional Rehab, Turn & Maintenance Staffing Model Regional Rehab, Turn & Maintenance Director (11) Manages 1-2 markets Vice Pres
Slide 49: Associate Optimization: Collapsing Time & Distance with Technology
Associate Optimization: Collapsing Time & Distance with Technology Locations visited per day and work orders handled per day have increased by 23% and 33% since Q1 2018 Locations Visited per Technician per Day Work Orders Handled per Technician per Day +23% +33% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q18 2Q
Slide 50: Performance Management: The Truth is in the Data
Performance Management: The Truth is in the Data Real-time and historical performance reporting provides actionable data necessary for driving improvement On-demand analytics and automated distribution of reports ensure company- wide consistency of expectations Drill-down capabilities at the mar
Slide 51: Vendor Management: Protecting the Invitation Homes Brand
Vendor Management: Protecting the Invitation Homes Brand Successful vendor management requires the right tools, setting expectations, and managing performance Capacity Analytics and Service Demand Projection Training materials and videos designed to educate third party maintenance vendors regardin
Slide 52: Vendor Management: Optimization through Technology
Vendor Management: Optimization through Technology Tech-enabled outsourcing using proximity and performance enhances vendor relationships and service quality Geography-based job assignments reduce vendor windshield time and improve technician productivity Monthly job assignment projections help
Slide 53: The Most Important Voice is the Voice of the Resident
The Most Important Voice is the Voice of the Resident Efforts to enhance residents’ maintenance experience are yielding positive feedback Resident Satisfaction Scores – Maintenance 4.60 4.49 4.40 4.32 4.20 4.00 3.80 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Slide 54: Real Resident Stories: The ProCare Difference
Real Resident Stories: The ProCare Difference 54
Slide 55: Proactive Resident Engagement
Proactive Resident Engagement 30+ proactive resident engagement calls are made daily based on predictive analytics Historical Work Machine Learning Potential Issue Proactive Order Data Identification Outbound Calls (500,000+ per year) Algorithmic Search Leveraging Machine Learning Key Word K
Slide 56: The Turn Process: A Peek Under the Hood
The Turn Process: A Peek Under the Hood Turns are a thoughtfully choreographed sequence of unique, measurable events designed for speed and quality Pre Move- Move-Out Resident Turn Out Visit Inspection Orientation What Meeting with outgoing Commencement of make- Formal turn process to Meetin
Slide 57: Turn Management: Leveraging Data to Drive Results
Turn Management: Leveraging Data to Drive Results A hybrid operational structure with local and national workflows ensures optimal performance Operate Locally for Speed Local manager and operator dashboards used to optimize workflows Local superintendent scorecards used to measure performance an
Slide 58: III. Growing Our Lead
Denver III. GROWING OUR LEAD How we’ll create value beyond organic growth 58
Slide 59: Growing our Lead
Growing our Lead Driving additional value by pursuing strategic initiatives in each part of the resident journey Strategic Initiatives Acquisition or Rebuy of the Home: Opportunistic acquisitions to grow net asset value and scale Acquisition or Active asset management to enhance portfolio qualit
Slide 60: Growing our Lead – External Growth Opportunity
Growing our Lead – External Growth Opportunity Acquisition or Rebuy of the Home Resident Make-Ready of Service and the Home ProCare Revenue Mgmt and Customer Acquisition 60
Slide 61: Substantial Opportunity for Accretive External Growth Over Time
Substantial Opportunity for Accretive External Growth Over Time Housing dynamics provide ample opportunity for external growth across our acquisition channels We are an efficient provider of best-in-class product and service in an industry (SFR) of which we own less than 1% today ▪ Within IH marke
Slide 62: Ramping up Acquisitions to Capitalize on Market Fundamentals
Ramping up Acquisitions to Capitalize on Market Fundamentals With an agile platform and team, IH has reacted opportunistically to quickly ramp up acquisition volume 2019 One-Off Acquisitions Homes acquired 250 230 200 173 150 142 98 98 100 88 74 64 65 50 0 Jan Feb Mar Apr May June July Aug Sep(1) 81
Slide 63: Near-term Portfolio Growth Strategy
Near-term Portfolio Growth Strategy Growth will be focused in the Western U.S. and subscale target markets to drive efficiencies Opportunity to buy below replacement cost in target locations at average cap rates in the mid-5%’s Seattle Denver NorCal Las Vegas Carolinas SoCal Phoenix Atlanta Dallas
Slide 64: Growing our Lead – Asset Management and Value Enhancing Capex
Growing our Lead – Asset Management and Value Enhancing Capex Acquisition or Rebuy of the Home Resident Make-Ready of Service and the Home ProCare Revenue Mgmt and Customer Acquisition 64
Slide 65: Enhancing Returns Through Active Asset Management
Enhancing Returns Through Active Asset Management Significant portfolio upside from capital recycling and reinvestment through our rigorous asset review program Asset Review Process A property is automatically flagged for the asset decision making process if it meets certain criteria during pre-mo
Slide 66: Value Enhancing Capex Opportunity
Value Enhancing Capex Opportunity Reinvesting in homes to simultaneously enhance resident loyalty, risk-adjusted returns, and asset durability Increased resident Scale loyalty Value Enhancing Data Double-digit NOI Project Scope yield on investment Experience in Markets Enhanced asset quality & durab
Slide 67: Case Study – Value Enhancing Capex
Case Study – Value Enhancing Capex Mint Hill, NC Property Assessment Asset Review Marketing Update Lease Survey Completed Performed Upon receiving move-out notice, a pre-move out visit (PMOV) is scheduled with the resident to: ▪ Assess condition of major elements of the home and identify potential
Slide 68: Case Study – Value Enhancing Capex (Cont.)
Case Study – Value Enhancing Capex (Cont.) Mint Hill, NC Property Assessment Asset Review Marketing Update Lease Survey Completed Performed Upon receipt of the property assessment survey, an algorithm searches for value enhancing investment opportunities Identification of opportunities triggers
Slide 69: Case Study – Value Enhancing Capex (Cont.)
Case Study – Value Enhancing Capex (Cont.) Mint Hill, NC Property Assessment Asset Review Marketing Update Lease Survey Completed Performed Initial evaluation of the Mint Hill home identified opportunities to upgrade numerous items throughout the home, including flooring, kitchen cabinets and coun
Slide 70: Case Study – Value Enhancing Capex (Cont.)
Case Study – Value Enhancing Capex (Cont.) Mint Hill, NC Property Assessment Asset Review Marketing Update Lease Survey Completed Performed Asset management alerts the local leasing manager and revenue management analyst to add the rental premium to the listed rate Revenue management analyst coo
Slide 71: Case Study – Value Enhancing Capex (Cont.)
Case Study – Value Enhancing Capex (Cont.) Mint Hill, NC Property Assessment Asset Review Marketing Update Lease Survey Completed Performed The actual spend for the upgraded items in the Mint Hill home was $8,889 (under budget by $966) After completion of value enhancing capex, the home leased i
Slide 72: Selective Dispositions
Selective Dispositions Multi-channel process maximizes our opportunity Disposition Pathways: Invitation Homes utilizes four main channels for the sale of homes to maximize net proceeds and execution speed Centralized Portfolio Goals Resident First Direct to Bulk Sales MLS/Broker LookTM Market Loca
Slide 73: Growing our Lead – Innovation in Leasing and Customer Acquisition
Growing our Lead – Innovation in Leasing and Customer Acquisition Acquisition or Rebuy of the Home Resident Make-Ready of Service and the Home ProCare Revenue Mgmt and Customer Acquisition 73
Slide 74: Leasing Innovation Opportunity
Leasing Innovation Opportunity We see opportunity to reduce days to re-resident over the next several years Each one-day reduction in average days to re-resident adds approximately $1.6M to the bottom line Reducing days to re-resident to the mid-30’s could make this a 97% structural occupancy bu
Slide 75: Key Initiatives to Reduce Days to Re-resident
Key Initiatives to Reduce Days to Re-resident We are targeting opportunities to become more efficient in each step of the prospect search journey Efficient Prospect Search Journey Initial Search (Rent Head) Invitation Homes Awareness Smart Home High-Touch Digital Approval Online + In Person Website
Slide 76: Becoming Smarter at Identifying Qualified Prospects
Becoming Smarter at Identifying Qualified Prospects We learn about residents via proprietary research, data analytics, focus groups, and attitude & usage studies Our Target and What They Want Schools Matter - Focus Groups Families growing or in transition with kids and pets “The reason I'm leasing
Slide 77: Reaching Audiences More Effectively
Reaching Audiences More Effectively We leverage consumer data & research to power an engine that continuously learns from prospect conversions Our Target How We Find Them: Lookalike audience modeling based on digital search behaviors: Inflection points ▪ E.g., more than one child increases likelih
Slide 78: Converting Applicants Faster
Converting Applicants Faster Prospecting engine and re-targeting data drives lead scores that inform prioritization of agents to “hot” leads Digital Prospecting Engine Digital advertisements find lookalike audiences across the web Reminder Journeys: ▪ Re-targeting with homes viewed on Facebook ▪
Slide 79: Enhancing our Digital Experience
Enhancing our Digital Experience Developing digital experience upgrades to make pre-leasing easier and secure high-quality applicants better Future Digital User Experience Personalized Leasing Profile Concept (Future Vision) Improved leasing profile ▪ Personalized search ▪ Easy login with social m
Slide 80: Pre-leasing Opportunity
Pre-leasing Opportunity More effective pre-leasing can be a significant driver of reduction in days to re-resident Pre-Leasing Percent change year-over-year IH re-residents homes 34 days faster on average when a home is pre-leased versus not pre-leased 12.8% ▪ A 5% increase in pre-leasing percenta
Slide 81: Real Resident Stories – "It Was So Easy"
Real Resident Stories – “It Was So Easy” 81
Slide 82: Growing our Lead – Enhancing the Resident Experience
Growing our Lead – Enhancing the Resident Experience Acquisition or Rebuy of the Home Resident Make-Ready of Service and the Home ProCare Revenue Mgmt and Customer Acquisition 82
Slide 83: Who are Our Residents?
Who are Our Residents? As we learn more about our residents, we see an opportunity to create a more tailored experience Demographics Avg. head of household age of 39 years old Avg. annual income over $100,000 57% are married 60% have one or more child 56% have a family pet Interest in Addi
Slide 84: Ancillary Services – Identification and Prioritization
Ancillary Services – Identification and Prioritization We have taken a systematic approach to identifying achievable opportunities that align with resident demand Our in-house ancillary services team has leveraged a quantitative framework to identify high-priority opportunities ▪ Began with an ini
Slide 85: Ancillary Services – Focusing on Our High-Priority List
Ancillary Services – Focusing on Our High-Priority List High-priority opportunities have been identified and implementation planning has commenced Opportunity Status Quick Wins Piloting in next 6 Smart Home Add additional smart features to enhance resident experience and increase IH profit margin mo
Slide 86: Ancillary Services – The Opportunity
Ancillary Services – The Opportunity We are in the very early stages of what the resident experience could look like Current State High-Priority Focus Initiatives Future Vision / Blue Sky Reliable “genuine care” that creates Enhanced leasing lifestyle that extends Leading edge service provider
Slide 87: IV. Concluding Remarks and Q&A
Atlanta IV. CONCLUDING REMARKS AND Q&A Significant upside – ready to run toward the opportunity 87
Slide 88: Ready to Run
Ready to Run Invitation Homes is ready to lead the next leg of the single-family rental growth story Favorable industry fundamentals; early stages of a long-term growth story Strategically positioned IH locations and scale that create a moat and enhance growth opportunities Innovative team com
Slide 89: Significant Growth Upside
Significant Growth Upside We are running toward multiple avenues of growth over the next several years 1) Organic Growth Market fundamentals and our differentiated locations, scale, and platform drive opportunity for outsized revenue growth Continued enhancement of processes and technology pave
Slide 90: Questions and Answers
Questions and Answers 90 e invitation homes
Slide 91: Invitation Homes Investment Highlights
Invitation Homes Investment Highlights “Ready to Run” with a portfolio and platform strategically positioned to pursue multiple growth opportunities • Significant pent up demand in millennial generation likely to move toward single-family rental over the next decade Secular Growth • Barriers to new
Slide 92: Glossary and Non-GAAP Reconciliations
Glossary and Non-GAAP Reconciliations 92
Slide 93: Glossary
Glossary Acquisition Cap Rate Acquisition cap rate represents forecast nominal NOI for the twelve months following stabilization, divided by estimated invested basis (the sum of purchase price, any closing adjustments, and estimated initial renovation expenditure for an acquired home or population o
Slide 94: 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 and seasoned (whether under Invitation Homes ownership or Starwood Waypoint Homes ownership), excluding homes that have been sold, homes that
Slide 95: Reconciliation of Same Store Metrics – 2019 Same Store Pool
Reconciliation of Same Store Metrics – 2019 Same Store Pool Reconciliation of Total Revenues to Same Store Core Revenues, 2019 Same Store Pool (in thousands) (unaudited) YTD 2019 YTD 2018 Growth Total revenues (total portfolio) $ 877,082 $ 856,095 Non-Same Store revenues (67,876) (87,273) Same Store
Slide 96: Reconciliation of Same Store Metrics – 2018 Same Store Pool
Reconciliation of Same Store Metrics – 2018 Same Store Pool Reconciliation of Total Revenues to Same Store Core Revenues, 2018 Same Store Pool (in thousands) (unaudited) FY 2018 FY 2017 Growth Total revenues (Invitation Homes total portfolio) $ 1,722,962 $ 1,054,456 Starwood Waypoint Homes revenues
Slide 97: Reconciliation of Same Store Metrics – 2017 Same Store Pool
Reconciliation of Same Store Metrics – 2017 Same Store Pool Reconciliation of Total Revenues to Same Store Core Revenues, 2017 Same Store Pool (in thousands) (unaudited) FY 2017 FY 2016 Growth Total revenues (total portfolio) $ 1,054,456 $ 922,587 Non-Same Store revenues (112,227) (87,390) Post-merg
Slide 98: Reconciliation of Same Store Metrics – 2016 Same Store Pool
Reconciliation of Same Store Metrics – 2016 Same Store Pool Reconciliation of Net Income (Loss) to NOI and Same Store NOI, 2016 Same Store Pool (in thousands) (unaudited) FY 2016 FY 2015 Growth Net loss $ (78,239) $ (160,208) Interest expense 286,048 273,736 Depreciation and amortization 267,681 250