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    Invitation Homes Inc (INVH)

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    Invitation Homes is a leading owner and operator of single-family homes for lease, with a portfolio of approximately 85,000 homes across 16 core markets in the United States . The company focuses on providing high-quality homes in desirable neighborhoods, catering to Americans who prefer leasing over homeownership due to the flexibility and convenience it offers . Invitation Homes operates in markets with strong demand drivers and high barriers to entry, such as the Western United States, Florida, and the Southeast United States, characterized by high rent growth potential . The company employs a vertically integrated operating platform to efficiently acquire, renovate, lease, maintain, and manage homes, including those managed on behalf of joint ventures and third parties . Their business model heavily relies on leasing activities and property management services, integral to their revenue generation strategy, while also emphasizing their commitment to environmental, social, and governance (ESG) initiatives .

    1. Leasing Activities - Provides single-family homes for lease, focusing on high-quality residences in desirable neighborhoods to cater to individuals and families preferring rental flexibility .
    2. Property Management Services - Offers comprehensive asset and property management services, including resident support, maintenance, marketing, and administrative functions for owned homes and those managed on behalf of joint ventures and third parties .
    3. Joint Ventures Management - Manages a significant number of homes owned by unconsolidated joint ventures, providing full property management services to optimize asset performance .
    4. ESG Initiatives - Emphasizes environmental, social, and governance initiatives as part of strategic business objectives, critical to long-term success .
    NamePositionStart DateShort Bio
    Dallas B. TannerChief Executive OfficerJanuary 2019Dallas B. Tanner is a founding member of Invitation Homes and has served as CEO since January 2019. He played a significant role in creating the single-family rental industry and has extensive experience in real estate investment .
    Charles D. YoungPresident and Chief Operating OfficerMarch 2023Charles D. Young has been the President and COO since March 2023. He was previously the Executive Vice President and COO from November 2017. Before joining Invitation Homes, he held various positions at SWH and SWAY Management LLC, and worked at Goldman, Sachs & Co. .
    Jonathan S. OlsenExecutive Vice President, Chief Financial Officer, and TreasurerJune 2023Jonathan S. Olsen has served as EVP, CFO, and Treasurer since June 2023. He joined Invitation Homes in 2012 and has held various roles, including EVP of Corporate Strategy and Finance. Prior to joining, he worked in real estate investment banking at several firms .
    Scott G. EisenExecutive Vice President and Chief Investment OfficerAugust 2023Scott G. Eisen has been EVP and CIO since August 2023. He has over 26 years of experience in real estate investment banking and was previously the Head of North American Real Estate Investment Banking for Citigroup .
    Mark A. SollsExecutive Vice President, Chief Legal Officer, and SecretaryAugust 2015Mark A. Solls has served as EVP, Chief Legal Officer, and Secretary since August 2015. He was previously the SVP and General Counsel of DentalOne Partners, Inc., and has held executive legal positions at Concentra Inc., Wyndham International, Inc., and DalTile International Inc. .
    H. Wyman Howard IIIBoard MemberOctober 1, 2024H. Wyman Howard III was appointed to the Board of Directors effective October 1, 2024. He retired from the U.S. Navy in September 2022 as Rear Admiral (Upper Half) and has served in various high-level roles, including Commander of Naval Special Warfare Command. He holds an MBA from the TRIUM consortium .
    1. Given that you've slightly reduced the midpoint of your same-store revenue growth guidance and acknowledged a potential overreaction to this adjustment, can you elaborate on the factors causing this moderation and how you plan to mitigate potential weakness in specific markets?

    2. With property tax expense expected to grow 8% to 9.5% year-over-year, and significant exposure in Florida and Georgia, how confident are you in managing these costs, and what strategies are you implementing to address potential risks from higher assessments?

    3. You mentioned achieving a 6% or better yield on cost for your build-to-rent projects; considering rising construction costs and market dynamics, how sustainable is this yield, and what measures are you taking to ensure these returns are maintained over the next year?

    4. As your average resident stay exceeds 3 years and approaches 4 to 5 years in some markets, how do you balance the benefits of high occupancy and retention with the potential impact on rent growth due to reduced turnover?

    5. While the expansion of your third-party management business has contributed to earnings, leading to an increase in core FFO guidance, can you discuss the profitability of this segment relative to your core operations and how you plan to scale it without affecting overall margins?

    YearAmount Due (in billions)Debt TypeInterest Rate (%)% of Total Debt
    20250.63 IH 2018-4 Mortgage LoanSOFR + 1.23 6.9% = (0.63 / 9.10) * 100
    20270.99 IH 2017-1 Mortgage Loan4.23 10.9% = (0.99 / 9.10) * 100
    20283.25 Unsecured Notes, Term Loan Facility, Revolving Facility2.30 - SOFR + 0.85 35.7% = (3.25 / 9.10) * 100
    20290.73 2022 Term Loan FacilitySOFR + 1.15 8.0% = (0.73 / 9.10) * 100
    20300.45 Unsecured Notes5.45 4.9% = (0.45 / 9.10) * 100
    20310.65 Unsecured Notes2.00 7.1% = (0.65 / 9.10) * 100
    20320.60 Unsecured Notes4.15 6.6% = (0.60 / 9.10) * 100
    20330.35 Unsecured Notes5.50 3.8% = (0.35 / 9.10) * 100
    20340.40 Unsecured Notes2.70 4.4% = (0.40 / 9.10) * 100
    20350.50 Unsecured Notes4.88 5.5% = (0.50 / 9.10) * 100
    20360.15 Unsecured Notes3.18 1.6% = (0.15 / 9.10) * 100

    Competitors mentioned in the company's latest 10K filing.

    • Larger investors, including private equity funds and other REITs, seeking to capitalize on the same market opportunity
    • Individual investors and small private investment partnerships looking for one-off acquisitions of investment properties
    • Large and small private equity investors, public and private REITs, and other sizable private institutional investors competing for portfolios
    • Other lessors of single-family properties, apartment buildings, and condominium units
    • Institutional investors, including other REITs, specialty finance companies, public and private funds, savings and loan associations, banks, mortgage bankers, insurance companies, institutional investors, investment banking firms, financial institutions, governmental bodies, and other entities
    • Individual private home buyers and small-scale investors
    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP2013 PresentCurrent auditor