Invitation Homes Inc.

Welcome to the Invitation Homes First Quarter 2022 Earnings Conference Call. My name is Ruby and I will be your moderator for today's call. If you would like to ask a question during the presentation, please press Start followed by 1 on your telephone keypad. I will now hand over to your host, Scott McLaughlin, to begin. Scott, please go ahead.

Good morning and welcome. I'm here today from Invitation Homes with Dallas Tanner, our President and Chief Executive Officer, Charles Young, Chief Operating Officer, and Ernie Friedman, Chief Financial Officer. During this call, we may reference our first quarter 2022 earnings release and supplemental information. This document was issued yesterday after the market closed and is available on the investor relations section of our website at www.invh.com. Certain statements we make during this call may include forward-looking statements relating to the future performance of our business, financial results, liquidity and capital resources, and other non-historical statements, which are subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated in any such statements. We describe some of these risks and uncertainties in our 2021 Annual Report on Form 10-K. and other filings we make with the SEC from time to time. Invitation Homes does not update forward-looking statements and expressly disclaims any obligation to do so. We may also discuss certain non-GAAP financial measures during this call. You can find additional information regarding these non-GAAP measures, including reconciliations to the most comparable GAAP measures in yesterday's earnings release. With that, let me turn the call over to Dallas.

Thanks, Scott, and good morning to those of you joining us today. We believe the fundamental tailwinds remain as strong as ever for our business, and I'm pleased by our team's solid execution that achieved our first quarter results. On the heels of Invitation Home's 10-year anniversary, it is clear that we've built a great real estate business that own and operate for lease product with first-rate service. But that's just the foundation, as our success is determined by the genuine care and the premier experience we provide to our residents every day. and the loyalty and trust our residents place in us. We see this evidenced by our average resident tenure of nearly 32 months, occupancy of over 98% with extraordinary resident retention, and work order satisfaction scores of over 4.7 out of 5. To the nearly 1 million residents who made a house a home with us, and especially to all of our associates, thank you for 10 great years. I often speak about how our homes are attracted to a resident demographic that is not only growing, but whose preferences continue to evolve. This continues to play out with a large population surge of younger adults just beginning to approach our average resident age of 39 years old. A common theme within this millennial cohort is that they want to live freer, meaning they want more choice and flexibility in their lives, including how and where they live. The pandemic accelerated this shift with many people choosing to move from tight quarters in higher cost cities to working from a home in a new location with great schools and a higher quality of life. More recently, the macroeconomic environment, including rising mortgage rates, has meant leasing a home is often a more affordable option than owning. According to recent data from John Burns, leasing a home is over 12% more affordable on average than owning a home within our markets. These factors and more have led to unprecedented demand for our product, which has been intensified due to a lack of available high-quality, well-located homes. At Invitation Homes, we're proud to be a part of the solution to this imbalance by offering choice and flexibility within housing. One way we're offering this is through our partnerships with home builders across the country, as well as through our recently announced ventures with Rock Point and Pathway Homes. I'll start with our builder relationships. which are helping to add new residential housing supply and expand choice for consumers where it's needed the most. Our current approach keeps development risk off of our balance sheet and partners us with some of the best in the business to select and buy new homes in great locations. We've talked a lot about our preferred relationship with Pulte Homes, which continues to progress towards our goal of buying 7,500 homes over the next several years. We're also working with other national, regional, and local home builders Through these relationships, as of the end of the first quarter, we've built a pipeline of nearly 2,000 new homes, and in a disciplined way, we're adding more every month. Most of these projects we're helping builders bring online will include a mix of owner-occupied and for-lease homes, which underscores our firm belief that everyone should have the choice to live in a great neighborhood, whether they lease or own. So we're proud to be bringing not just new homes, but new and diverse communities to life. Another example is our latest Rock Point joint venture, which we announced last month to specialize in premium location, higher price point homes for lease. These homes will offer superior locations within our markets and open up investment opportunities where we have limited or no current product. And they also provide us an opportunity to invest in additional projects with our home builder partners. In Phoenix, for example, that might be a home in a sub market like Scottsdale or in the Plano sub market of Dallas. In turn, We believe residents of these homes may want a higher level of convenience and live easy amenities and choose to spend more on ancillary and other services. We expect the new JV to begin buying homes soon with us earning asset and property management fees in addition to our share of income as we target this new premium segment. Another example is our investment in Pathway Homes. Pathway works directly with aspiring homeowners to identify and purchase a home, offering them the opportunity to lease their home first with an option to buy at a later date if they choose. Pathway has started acquiring homes and is well on the way to providing residents the choice to lease today with the flexibility to buy tomorrow if they so desire. To further our commitment to choice and flexibility and in response to the ongoing strong demand for our homes for lease, we plan to keep growing our portfolio this year. We plan to leverage our multi-channel acquisition strategy, our proprietary acquisition IQ technology, and are localized in markets to help us grow prudently where pricing, total risk-adjusted returns, and scale make the most sense. We're targeting total gross acquisition, including through our JVs, $2 billion this year. We continue to make good progress so far in that regard with plenty of opportunities still in front of us. In summary, whether it's through our growth, our home builder relationships, or our strategic partnerships, we're very proud of our 10-year history of providing choice and flexibility in housing. along with a best-in-class resident experience that allows our residents to live freer. On behalf of this great company and fantastic team, I couldn't be more excited about the opportunities the next 10 years will bring, as we remain committed to being part of the overall housing solution that this nation needs. And with that, I'll pass it on to Charles, our Chief Operating Officer.