Invitation Homes Inc. · NYSE:INVH
Invitation Homes — NAREIT Conference November 2018
21 slides from Invitation Homes's conference presentation, Nov 7, 2018
Slide 1: NAREIT Conference November 7-8, 2018
NAREIT Conference November 7-8, 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 Core FFO growth and Same Store NOI growth among the best in REIT industry • 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 lifestage needs align
Slide 5: 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 6% Denver 3% Las Vegas South
Slide 6: Best-in-Class Operating & Asset Management Platform
Best-in-Class Operating & Asset Management Platform Innovative ProCare Service Platform drives resident loyalty and operational efficiency ProCare Service Overview Unparalleled living experience created by local resident care teams, 24/7 service, online resident portal, and SmartHome technology
Slide 7: High-quality Portfolio and Service Drive Loyal Residents
High-quality Portfolio and Service Drive Loyal Residents Resident turnover rate has declined consistently over the course of 2018, benefiting occupancy Trailing Twelve Months Turnover Rate Trailing Twelve Months Average Occupancy (Same Store) (Same Store) 95.7% 35.5% 35.1% 95.5% 95.5% 34.4% 33.9% 95
Slide 8: Strong Revenue Growth Momentum
Strong Revenue Growth Momentum Leasing performance versus prior year strengthened further in October 2018 Same Store Average Occupancy Same Store New Lease Rent Growth 96.1% 5.5% 4.9% 95.8% 95.8% 95.8% 95.7% 95.5% 3.3% 3.3% 3.3% 95.2% 2.5% 95.0% 1.8% 1.4% Q1 Q2 Q3 October Q1 Q2 Q3 October 2017 2018
Slide 9: Merger Integration Progressing Well
Merger Integration Progressing Well On track to surpass benefits initially committed to residents, team members, and shareholders Integration Elements Outcome / Progress Update Timing Seamless transition upon merger close, with uninterrupted service 1 Resident service ✓ and consistently high residen
Slide 10: 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 Toward Investment Grade ► No debt maturities until 2020(1) ► Recent refinancings have further strengthened our balance sheet: 12/3
Slide 11: II. Compelling Industry Fundamentals
Seattle II. COMPELLING INDUSTRY FUNDAMENTALS 11
Slide 12: Favorable Macro Fundamentals
Favorable Macro Fundamentals Supply and demand remain supportive of growth, especially in Invitation Homes markets Projected Household Formations Total Single Family Permits (Household Growth, 2019e) (% of households) 1.9% 1.6% 1.0% 1.0% U.S. Average Invitation Homes Markets(1) 1985 - 2017 Average i
Slide 13: 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 14: 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 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
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 17: 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 18: IV. Appendix
‘Orlande= IV. APPENDIX 18 . 3 invitation homes
Slide 19: 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 20: Glossary (continued)
Glossary (continued) 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
Slide 21: 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