Invitation Homes Inc.

I would like to turn the conference over to Scott McLaughlin, Senior Vice President of Investor Relations. Please go ahead.

Good morning and welcome. I'm here today from Invitation Homes with Dallas Tanner, Chief Executive Officer, Charles Young, President and Chief Operating Officer, John Olson, Chief Financial Officer, and Scott Eisen, Chief Investment Officer. Following our prepared remarks, we'll conduct a question and answer session with our covering sell-side analysts. In the interest of time, we ask that you limit yourselves to one question and then re-queue if you'd like to ask a follow-up question. During today's call, we may reference our fourth quarter 2023 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. We describe some of these risks and uncertainties in our 2022 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. I'll now turn the call over to Dallas Tanner our Chief Executive Officer. Good morning, everyone, and thanks for joining us.

Our customers' needs are straightforward. They want to lease a great home in a safe neighborhood with great schools and easy access to jobs. They want professional services and genuine care. And they want flexibility and convenience that allows them to live more freely. Twelve years ago, a lot of these options either didn't exist or weren't readily available. Today, they all do. Thanks to the hard work and the commitment of our associates, thanks to the mission of this company that together with you we make a house a home, and thanks to the hundreds of thousands of residents who have put their trust in us to do exactly that. Last year marked many important milestones for Invitation Homes. We returned to a more sustainable growth profile while continuing to expand and improve on the overall resident experience. It was a year in which we helped our home builder partners start construction on thousands of much needed new homes across the country. It was a year in which we recycled over $500 million of capital selling nearly 1500 homes on the MLS predominantly to homeowners. And it was a year in which we executed one of the more significant portfolio acquisitions in our company's history. We are excited to continue this momentum into 2024 as we expand on what it means to live in an invitation home. By this, I'm referring to last month's announcement that our industry leading operating platform is now available to not just our residents and joint venture partners, but also to large portfolio owners who are seeking the best in single family property management for their residents and the best in single family asset management for their investors. Let me be really clear here. We believe providing professional property and asset management services is both a logical next step for our business as well as a strategic, significant leap forward. It empowers us to accretively leverage our platform in a capital-light manner while helping us to achieve further scale, increased efficiency, and additional margin expansion for our company, and substantial savings and convenience for our residents. It all began with last month's inaugural agreement to become the property and asset manager on over 14,000 single-family homes. we expect this agreement to drive incremental AFFO of a couple of cents per share in 2024. This results from meaningful property management and asset management fees that we believe fairly compensate us for our unrivaled capability, scale, and expertise. In addition to this, we'll also learn an outsized share of value-add service revenues, such as from smart home, bundled internet, and other initiatives we may roll out in the future along with potential future incentives based on the operating and financial performance we're able to drive over time. We believe this inaugural agreement is the first of what could be many such arrangements. As we pursue additional opportunities, we expect professional management to help us build and grow strategic relationships. While we continue to become even more efficient through greater density, improved procurement, better resident engagement, and thoughtful use of data and technology, Most importantly, as in other REIT subsectors, we expect professional management to help us create a pipeline of potential future acquisition opportunities for homes about which we'll have an information advantage. In the meantime, we believe the fundamental tailwinds for our business will continue to drive outsized NOI and earnings growth relative to other REIT property types. This includes a well-documented lack of new housing supply across our markets, as well as the strong demand from a surge of young adults who are just starting to reach our average new resident age in their late 30s. These younger generations often favor experiences over possessions and prefer convenience and flexibility over financial anchors and 30-year contracts. It's also important that we underscore the massive savings from leasing a home today versus owning. Using John Byrne's fourth quarter data as weighted by our markets, it is $1,200 per month less expensive to lease a home than to own it. That's an average savings for our residents of over $14,000 a year. We see this reflected in our latest surveys, in which a substantial majority of our new residents say that our rents and services are affordably priced. One of these services, which we just started to provide last year, completely free of charge, is Isuzu's positive credit reporting program. Already, over half of our residents have improved their credit scores since enrolling. with the average credit score improvement of about 35 points. This could help our residents achieve thousands of dollars in lifetime savings on their borrowing costs, further enhancing the value proposition for leasing a home with us. In summary, we're very proud of the choices we offer individuals and families to live in a great home without the high costs and burdens of home ownership. We remain committed to investing in our technology, systems, value-add services, and other tools to help our residents thrive. And we're excited by how we can continue to grow our business, further enhance the resident experience, and meaningfully broaden the professional services we offer. In this regard, we truly believe we are just getting started. With that, I'll pass the call on to Charles Young, our President and Chief Operating Officer.