Invitation Homes Inc.

ladies and gentlemen thank you for standing by welcome to the invitation home second quarter 2022 earnings conference call my name is irene and i will be coordinating this event i would like to turn the conference over to our host scott mclaughlin head of investor relations scott please go ahead thank you irene 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 second 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. Invitational 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 the 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. I'm excited to speak with you today following the release of our second quarter results. The state of the business remains very healthy. Second quarter average occupancy was 98%. We set a new record with trailing 12-month turnover at only 21.3%. Lease growth continued to accelerate, including a blended rate of 11.8% that was 380 basis points higher year over year. And same-store NOI growth was 12.4%. These strong results and our improved expectations for the full year, as provided in our revised guidance, reflect the hard work of our teams and the impact of favorable supply and demand dynamics within our markets. I'd like to discuss these in more detail during my remarks today. First, let me begin with the hard work of our teams. We've been providing a high level of care to single family residents since we started the business over 10 years ago. As you know, we provide 24-7 customer service to our residents, routine ProCare visits, and a deep and wide bench of dedicated associates. We believe we offer a differentiated and best-in-class experience that is unique to an industry that is still predominantly comprised of smaller mom-and-pop operators. We know that satisfied residents tend to stay with us longer and take better care of their homes. And our customers are telling us they are very satisfied. both by their comments and with their actions. We believe our high resident satisfaction ratings, high resident retention, and high occupancy are among the strongest indicators of our residents' trust, satisfaction, and loyalty. I'd therefore like to thank our more than 1,400 associates for delivering the best resident experience in the industry and for executing so well operationally again this past quarter. Second, the overall shortage of housing. By some estimates, the United States is undersupplied by as many as 2 to 4 million homes today. Much of this traces back to the Great Recession and the resulting plummet in the number of single-family housing starts. While construction has gradually improved, it remains insufficient to meet existing demand and is predicted to decline again over the next few years. Despite these supply challenges, we continue to offer a valuable choice for those who want to lease a home. This choice is broad-based, and in addition to our legacy business, now includes options for those preferring a lease-to-own opportunity through our investment in Pathway Homes, as well as one for those desiring to lease a home that's been recently constructed by one of our builder partners. Third, I'd like to discuss the strong demand we continue to see for our homes. This is driven by job growth and household formation in our markets and continued migration and population growth, particularly within the Sunbelt. It's also driven by age-based demographics. Millennials still represent the largest population segment in the United States at over 70 million people between the ages of 26 and 41 today. With our average new resident age staying really consistent at about 39 years old, we believe many of this generation are or will be attracted to the lifestyle and affordability that leasing a single-family home provides. This demand is further enhanced as a result of more recent and continuing trends, including the need for more space, such as a home office, the popularity of pets, and a rise in mortgage rates have made leasing a home a more affordable option compared to home ownership in all of our markets today. I also want to say a few things relating to ESG. We recognize the strength of our business is directly linked to the strength of our communities. In this regard, we've led by our core values, including those of genuine care and standout citizenship. We live out these core values in many ways, including tens of thousands of company paid hours that our associates spend volunteering in their local communities each year. Our invitation to skill up project, which encourages and supports careers in the skilled trades and also our green spaces programs, which develop and improve outdoor community spaces and promote conservation efforts. The call to be a standout citizen extends to our corporate government practices as well, where we recently moved up in Green Street's annual REIT governance rankings from one of the top rated REITs to the highest rated REIT. Before I wrap up, I want to address the report released this morning by the House Select Subcommittee on the Coronavirus Crisis. While we have not had time to fully digest their report, there are a few things I'd like to share here. First and perhaps most importantly, The report clearly states that we did not engage in practices that were unlawful, a fact that we've known quite well since we work hard to follow all of the laws within our markets. Second, this report shows just a tiny fraction of the full picture of the work we did during the pandemic and will continue to do so today. We are proud of how we stepped out early to halt all evictions, to fully comprehend the impact of the pandemic, and quickly moved to provide flexible payment plans for our residents. contacted residents who had fallen behind in order to help them with flexible payment options or assistance with government assistance. And our overall, our team showed the kind of genuine care we are proud to exhibit on a daily basis. Through these efforts, we provided help to more than 33,000 residents who are in need of extra time or financial assistance for a total of nearly $175 million. We also helped over 10,000 residents obtain government assistance payments totaling more than $94 million. These are the outcomes that matter. At Invitation Homes, we believe everyone should have the choice to live in a great neighborhood. When they choose to lease from us, we're committed to providing the highest quality resident experience possible. We're pleased to have favorable supply and demand fundamentals as a tailwind for our business, and we work hard to offer a best-in-class resident experience that allows our residents to live freer. With that, I'll pass it on to Charles, our Chief Operating Officer.