Invitation Homes Inc.

Greetings and welcome to the Invitation Homes third quarter 2022 earnings conference call. All participants are in listen-only mode at this time. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Scott McLaughlin, Vice President of Investor Relations. 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 third 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 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 appreciate everyone joining us today. It was a solid quarter for Invitation Homes, with same-store NOI growth of 8.6%, blended lease rate growth of 11.6%, and average occupancy of 97.5%. Our continued low turnover, high occupancy, and high resident satisfaction scores remain a testament to the outstanding efforts of our associates. My thanks to them for providing another quarter of premier resident service, especially to those recently impacted by Hurricane Ian. I couldn't be prouder of the quick and caring response our team members provided in the wake of the storm, as well as our role in helping the communities we serve. Across the country, we provide housing choice and flexibility that residents desire and need. While the macro world we all live in has changed quite a bit in the past year, we believe our business remains well positioned to succeed within it. Here's why. To start, we believe professionally managed single family homes for lease are an important part of the housing solution in the United States. We still face a housing supply shortage in this country by as many as several million units from some accounts. Today's elevated interest and mortgage rates haven't helped as seen by the pullback from builders in the last month's further decline and starts for single family home. It's also harder for those thinking of buying a home in the near term. Recent reports have noted that monthly payments on new mortgages have increased by as much as 60% since the start of this year due to higher mortgage rates. According to last month's data from John Burns, this contributes to a cost of home ownership that is over 20% higher on average than leasing across invitation homes markets. That works out to an average difference of roughly $600 a month in savings from leasing a home. So leasing remains a preferred choice for many families, combining convenience and flexibility as well as value. These advantages further fan the favorable tailwinds of demographics, especially among millennials, who are just beginning to approach our average resident age of 39 years old. With our expectation that these favorable supply and demand dynamics will stay with us, there's a call to grow our industry-leading scale, technology, and experience. We consider this in tandem with our cost of capital. Our updated acquisition assumption for the full year is $1.1 billion. And through the third quarter, we've acquired approximately $1 billion of that target. We have slowed our acquisition pace in light of the current environment, taking advantage of opportunities to recycle assets and weighing our cost of capital on balance sheet versus our joint ventures. As a result, we're continuing to explore all opportunities available to us to expand our investment management businesses and explore creative growth. While at the same time, operating as prudent capital allocators who remain nimble for when opportunities may arise. As we have continued to learn and grow, so have many of our best practices, including how we address energy and sustainability. We recently deepened our bench with the hiring of two in-house experts to oversee our ESG and our energy initiatives. We have a responsibility and a commitment to be a leader in these areas among our industry, and I'm pleased to see us making good progress. Of particular note, we recently learned that our latest Gresby score increased over 13% year-over-year, a significant improvement that reflects the great work by our ESG task force. Before wrapping up, I'd like to comment on our reported results and our updated guidance. Our revised full-year guidance for 2022 is consistent with our prior expectations for the overall business with two exceptions, property taxes and bad debt. Property tax assessments have been impacted more quickly than we would have anticipated due to the robust home price appreciation within our markets. And our bad debt is expected to stay somewhat elevated compared to before the pandemic, as it's taking us longer to address residents who are not current with their rents. We're committed to doing our best to help manage through these items. In closing, we believe our business remains favorably positioned within the residential and the broader REIT space. And we're excited by the positive impact we're making for greater options in housing and the opportunities we believe this brings to invitation homes and our stakeholders. With that, I'll pass it on to Charles, our Chief Operating Officer.