Invitation Homes 8-K Results of Operations and Financial Condition

Exhibit 99.1

Table of Contents

Section I: Section II: Section III: Section IV: Section V: Appendix:	Earnings Release Consolidated Financials Selected Additional Information Same Store Information Earnings Guidance Definitions and Reconciliations	2 9 16 21 34 36

1

      I. Earnings Release

2

Earnings Release

COLONY STARWOOD HOMES ANNOUNCES

FOURTH QUARTER AND FULL YEAR 2016 FINANCIAL AND OPERATING RESULTS

Scottsdale, Arizona (February 28, 2017) – Colony Starwood Homes (NYSE: SFR) (the “Company”), a leading single-family rental real estate investment trust (“REIT”), today announced operating and financial results for the three and twelve months ended December 31, 2016. Capitalized terms used herein have the meanings set forth in the Appendix.

Fourth Quarter 2016 Highlights

• Total revenues increased to $146.4 million in Q4 2016, driven by Quarterly Same Store revenue growth of 5.4%

• Occupancy was 95.5% for the Quarterly Same Store cohort of 28,146 homes

• Net loss of $10.5 million or ($0.10) per share; Core FFO of $51.0 million or $0.47 per share for the three months ended December 31, 2016

• Quarterly Same Store NOI increased 15.5% over Q4 2015; Quarterly Same Store Core NOI margin was 66.2%

Full Year 2016 Highlights

• Total revenues increased to $575.7 million in 2016, driven by Full Year Same Store revenue growth of 6.2%

• Occupancy was 95.9% for the Full Year Same Store cohort of 22,363 homes

• Net loss of $81.3 million or ($0.80) per share; Core FFO of $182.8 million or $1.69 per share

• Full Year Same Store NOI increased 11.0% over 2015; Full Year Same Store Core NOI margin was 63.8%

• Company substantially exited from the non-performing loan (“NPL”) business through portfolio sale with total proceeds of $265.3 million

• Reduced total debt in FY16 by $354.0 million with NPL proceeds, non-core asset disposition activity and cash from operations

• Exceeded target of $50 million in annualized Merger synergies

“Fourth quarter Core FFO of $0.47 per share, supported by our Same Store Core NOI margin of 66.2%, caps a year of tremendous accomplishments for Colony Starwood Homes,” stated Fred Tuomi, the Company’s CEO. “Demand for our high-quality, well-located single-family rental homes and operational efficiencies from market density produced Full Year Same Store NOI growth of 11.0%. Since completing our merger in early 2016, we have strengthened our balance sheet by reducing outstanding debt, extending maturities and increasing fixed rate debt from 10% to over 80% today. Having met or exceeded our stated goals for our first full year as Colony Starwood Homes, we are highly confident in our ability to continue delivering superior results. Our 2017 full-year growth expectations reflect strong fundamentals in our high growth markets, the underlying strength of our existing portfolio, and the additional growth opportunities we are pursuing.”

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

         3

Earnings Release (Continued)

The 2016 financial results of the Company (other than Quarterly Same Store or Full Year Same Store results) include the historical financial results of Starwood Waypoint Residential Trust (“SWAY”) beginning on January 5, 2016, which was the date of the merger between Colony American Homes (“CAH”) and SWAY (the “Merger”). Historical financial results (other than Same Store results) as of dates or for periods prior to January 5, 2016 represent only the pre-Merger financial results of CAH and do not reflect what the financial results would have been had the Merger been complete during such periods.

Fourth Quarter 2016 Operating Results

Total revenues were $146.4 million for the three months ended December 31, 2016, and net loss attributable to common shareholders was approximately $10.5 million, or ($0.10) per share, driven by depreciation and amortization expense.

NAREIT FFO was $40.0 million for the three months ended December 31, 2016, or $0.37 per share, and Core FFO was $51.0 million, or $0.47 per share. NAREIT FFO and Core FFO are common supplemental measures of operating performance for a REIT, and the Company believes both are useful to investors as a complement to GAAP measures because they facilitate an understanding of the operating performance of the Company’s properties.

Same Store Results

For the Company’s Quarterly Same Store portfolio of 28,146 homes, revenue for the three months ended December 31, 2016 was $131.4 million, a 5.4% increase in those homes’ revenues as compared to the three months ended December 31, 2015.  For the Company’s Full Year Same Store portfolio of 22,363 homes, revenue for the twelve months ended December 31, 2016 was $402.7 million, a 6.2% increase in those homes’ revenues as compared to the twelve months ended December 31, 2015. For the Quarterly Same Store portfolio, property operating expenses were down by 8.8% from the three months ended December 31, 2015, resulting in an 15.5% growth of Quarterly Same Store NOI for the three months ended December 31, 2016 as compared to the three months ended December 31, 2015. For the Full Year Same Store portfolio, property operating expenses were down 0.7% from the twelve months ended December 31, 2015, resulting in an 11.0% increase of Full Year Same Store NOI for the twelve months ended December 31, 2016 as compared to the twelve months ended December 31, 2015. Quarterly and Full Year Same Store Core NOI margins were 66.2% and 63.8%, respectively. The table below summarizes Quarterly and Full Year Same Store operating results.

	Quarterly Same Store	Full Year Same Store
Homes as of December 31, 2016	28,146	22,363
Occupancy as of December 31, 2016	95.5%	95.9%
Revenue Growth (December 31, 2016 as compared to December 31, 2015)(1)	5.4%	6.2%
Operating Expense Growth (December 31, 2016 as compared to December 31, 2015) (1)	-8.8%	-0.7%
NOI Growth (December 31, 2016 as compared to December 31, 2015) (1)	15.5%	11.0%
Core NOI Margin(1)	66.2%	63.8%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

         ⁽¹⁾ Quarterly Same Store and Full Year Same Store results reflect the three months and twelve months ended December 31, 2016, respectively.   4

Earnings Release (Continued)

Investments

During the three months ended December 31, 2016, the Company acquired 549 homes for an aggregate estimated total investment of approximately $132.0 million, or approximately $240,000 per home, including estimated investment costs for renovation.  The Company sold 228 single-family rental homes for gross sales proceeds of $38.2 million, resulting in a gain of approximately $1.3 million.

For the twelve months ended December 31, 2016, the company acquired 1,079 homes for an aggregate estimated total investment of approximately $262.8 million, or $244,000 per home, including estimated investment costs for renovation.  The Company sold 976 single-family rental homes for gross sales proceeds of $167.4 million, resulting in a gain of approximately $4.7 million.

NPL/REO Discontinued Operations

On May 4, 2016, the Company’s board of trustees (the “Board”) authorized the exit of the non-performing loan (“NPL”) business. The remaining operations of the NPL business segment are recorded as discontinued operations, net for the three and twelve months ended December 31, 2016 and all comparable periods.

In Q4 the Company sold 220 real estate owned (“REO”) homes in the NPL business segment for $31.4 million of total cash proceeds, of which $14.4 million was used to pay down associated debt. As of December 31, 2016 there was $19.3 million of outstanding associated debt; subsequent to December 31, 2016 this debt was paid in full and the warehouse line was extinguished.

Balance Sheet and Capital Markets Activities 

As of December 31, 2016, the Company had $3.8 billion of debt outstanding and approximately $492.0 million of undrawn commitments on its credit facilities. Since the Merger closed on January 5, 2016 through December 31, 2016, the Company reduced its outstanding debt by approximately $354.0 million.

Subsequent to December 31, 2016, the Company sold $345.0 million of 3.50% convertible senior notes due 2022.  The Company used the net proceeds from the new convertible offering to repurchase, in privately negotiated transactions, substantially all of its 4.50% convertible senior notes due in 2017.  Remaining proceeds from the note issuance were used to repay amounts drawn on the Company’s credit facilities, to fund ongoing asset acquisitions and for general corporate purposes.

The Company did not repurchase any shares in the fourth quarter of 2016 under its $250.0 million repurchase program, which is authorized through May 6, 2017.  To date, the Company has purchased 2.4 million shares for an aggregate purchase price of $52.8 million at an average of $22.19 per share under the program.

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

5

Earnings Release (Continued)

On February 22, 2017, the Board declared a dividend of $0.22 per common share for the first quarter of 2017, which will be paid on April 14, 2017 to shareholders of record on March 31, 2017.

Full Year 2017 Financial Guidance

The Company does not provide forward-looking guidance for certain financial measures on a GAAP basis because it is unable to reasonably predict certain items contained in the GAAP measures, including one-time and infrequent items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, discontinued operations, share-based compensation and other items not reflective of the Company's ongoing operations.

2017 Guidance
Core FFO/Share	$1.85 - $1.95
Same Store Revenue Growth (1)	4 – 5%
Same Store Expense Growth (1)	2 – 3%
Same Store Core NOI Margin (1)	63 – 65%
Same Store Occupancy (1)	95 – 96%
Same Store Turnover (1)	34 – 36%

This outlook is based on a number of assumptions, many of which are outside the Company’s control and all of which are subject to change. This outlook reflects the Company’s expectations on (1) existing investments and (2) yield on incremental investments inclusive of the Company’s existing pipeline. All guidance is based on current expectations of future economic conditions and the judgment of the Company’s management team. Please refer to the Forward Looking Statement disclosure on page 8.

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

         ⁽¹⁾ 2017 Full Year Same Store property count is expected to be approximately 28,850, subject to dispositions throughout the year.   6

Earnings Release (Continued)

Fourth Quarter 2016 Conference Call

A conference call is scheduled on Tuesday, February 28, 2017, at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the three and twelve months ended December 31, 2016. The domestic dial-in number is 1-877-407-9039 (for U.S. and Canada) and the international dial-in number is 1-201-689-8470 (passcode not required). An audio webcast may be accessed at www.colonystarwood.com in the investor relations section. A replay of the call will be available through March 31, 2017 and can be accessed by calling 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (international), replay pin number 13653043, or by using the link at www.colonystarwood.com, in the investor relations section.

About Colony Starwood Homes

Colony Starwood Homes (NYSE: SFR) is one of the largest publicly traded owners and operators of single-family rental homes in the United States. Colony Starwood Homes acquires, renovates, leases, maintains and manages single-family homes in markets that exhibit favorable demographics and long-term economic trends, as well as strengthening demand for rental properties. Colony Starwood Homes is building its business upon a foundation of respect for its residents and the communities in which it operates. Additional information can be found at www.colonystarwood.com.

Additional information 

A copy of the Fourth Quarter 2016 Supplemental Information Package (“Q4 2016 Supplement”) and this press release are available on the Company’s website at www.colonystarwood.com.  

Notice Regarding Non-GAAP Financial Measures

This press release and the Q4 2016 Supplement contain and may refer to certain non-GAAP financial measures and terms that management believes are helpful in understanding our business, as further set forth in the definitions, explanations and reconciliations of each non-GAAP financial measure to its most comparable GAAP financial measures included in the Appendix. These measures and terms are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should be read together with the most comparable GAAP measures.

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

   7

Earnings Release (Continued)

Forward-Looking Statements

Certain statements in this press release and the quarterly supplement/presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are based on certain assumptions and discuss future expectations, describe future plans and strategies and contain financial and operating projections or state other forward-looking information. The Company’s ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company’s actual results and performance could differ materially from those set forth in, or implied by, the forward-looking statements. Factors that could materially and adversely affect the Company’s business, financial condition, liquidity, results of operations and prospects, as well as the Company’s ability to make distributions to its shareholders, include, but are not limited to: the factors referenced in the Company’s Annual Report on Form 10-K; unanticipated increases in financing and other costs, including a rise in interest rates; the availability, terms and the Company’s ability to effectively deploy short-term and long-term capital; the possibility that unexpected liabilities may arise from the Company’s merger (the “Merger”) with Colony American Homes (“CAH”), including the outcome of any legal proceedings that have been or may be instituted against the Company, CAH or others in connection with the Merger and the associated transactions; changes in the Company’s business and growth strategies; the Company’s ability to hire and retain highly skilled managerial, investment, financial and operational personnel; volatility in the real estate industry, interest rates and spreads, the debt or equity markets, the economy generally or the rental home market specifically, whether the result of market events or otherwise; events or circumstances that undermine confidence in the financial markets or otherwise have a broad impact on financial markets, such as the sudden instability or collapse of large financial institutions or other significant corporations, terrorist attacks, natural or man-made disasters, or threatened or actual armed conflicts; declines in the value of single-family residential homes, and macroeconomic shifts in demand for, and competition in the supply of, rental homes; the availability of attractive investment opportunities in homes that satisfy the Company’s investment objective and business and growth strategies; the Company’s ability to convert the properties it acquires into rental homes generating attractive returns and to effectively control the timing and costs relating to the renovation and operation of the properties; the Company’s ability to complete its exit from the non-performing loan (“NPL”) (and related real estate owned) business in the anticipated time period on acceptable terms and to re-deploy net cash proceeds therefrom; the Company’s ability to lease or re-lease its rental homes to qualified residents on attractive terms or at all; the failure of residents to pay rent when due or otherwise perform their lease obligations; the Company’s ability to effectively manage its portfolio of rental homes; the concentration of credit risks to which the Company is exposed; the rates of default or decreased recovery rates on the Company’s target assets; the adequacy of the Company’s cash reserves and working capital; potential conflicts of interest with Starwood Capital Group, Colony Capital, LLC (“Colony Capital”), Colony NorthStar, Inc. (“Colony NorthStar”) and their affiliates and managed investment activities; the timing of cash flows, if any, from the Company’s investments; the Company’s expected leverage; financial and operating covenants contained in the Company’s credit facilities and securitizations that could restrict its business and investment activities; effects of derivative and hedging transactions; the Company’s ability to maintain effective internal controls as required by the Sarbanes-Oxley Act of 2002 and to comply with other public company regulatory requirements; the Company’s ability to maintain its exemption from registration as an investment company under the Investment Company Act of 1940, as amended; actions and initiatives of the U.S., state and municipal governments and changes to governments’ policies that impact the economy generally and, more specifically, the housing and rental markets; changes in governmental regulations, tax laws (including changes to laws governing the taxation of real estate investment trusts (“REITs”)) and rates, and similar matters; limitations imposed on the Company’s business and its ability to satisfy complex rules in order for the Company and, if applicable, certain of its subsidiaries to qualify as a REIT for U.S. federal income tax purposes and the ability of certain of the Company’s subsidiaries to qualify as taxable REIT subsidiaries for U.S. federal income tax purposes, and the Company’s ability and the ability of its subsidiaries to operate effectively within the limitations imposed by these rules; and estimates relating to the Company’s ability to make distributions to its shareholders in the future.

You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in the reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. Except as required by law, the Company is under no duty to, and the Company does not intend to, update any of the forward-looking statements appearing herein, whether as a result of new information, future events or otherwise.

Contacts:
Investor Relations	Media Relations
John Christie Phone: 510-982-5470 Email: IR@colonystarwood.com	Jason Chudoba Phone: 646-277-1249 Email: Jason.chudoba@icrinc.com

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

   8

      II. Consolidated Financials

9

Balance Sheet (Condensed)

As of December 31, 2016

(Unaudited)

Dollars in thousands

Assets				Liabilities
Investments in real estate properties:				Accounts payable and accrued expenses	$	88,140
Land and land improvements	$	1,584,533		Resident prepaid rent and security deposits		57,823
Buildings and building improvements		4,403,871		Secured credit facilities		108,501
Furniture, fixtures and equipment		131,502		Mortgage loans, net		3,333,241
Total investments in real estate properties		6,119,906		Convertible senior notes, net		356,983
Accumulated depreciation		(370,394	)	Liabilities related to assets held for sale		25,495
Investments in real estate properties, net		5,749,512		Total liabilities		3,970,183
Real estate held for sale, net		22,201
Cash and cash equivalents		109,097		Equity
Restricted cash		155,194		Common shares, at par		1,015
Investments in unconsolidated joint ventures		34,384		Additional paid-in capital		2,734,034
Asset-backed securitization certificates		141,103		Accumulated deficit		(319,828	)
Assets held for sale		76,870		Accumulated other comprehensive loss		23,667
Goodwill		260,230		Total shareholders' equity		2,438,888
Other assets, net		66,585		Non-controlling interests		206,105
				Total equity		2,644,993
Total assets	$	6,615,176		Total liabilities and equity	$	6,615,176

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

10

Statements of Operations

(Unaudited)

Dollars in thousands

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2016			2015(1)			2016			2015(1)
Revenues
Rental income	$	137,725		$	75,633		$	538,191		$	283,635
Other property income		6,014			2,298			25,844			17,167
Other income		2,625			2,934			11,647			2,934
Total revenues		146,364			80,865			575,682			303,736
Expenses
Property operating and maintenance		19,225			19,036			83,451			62,349
Real estate taxes, insurance and HOA costs		26,973			10,433			110,112			53,894
Property management expenses		8,276			4,635			34,736			18,422
Interest expense		37,430			17,324			152,167			65,034
Depreciation and amortization		42,945			28,007			178,763			108,307
Impairment of real estate assets		220			10,724			750			11,780
Share-based compensation		931			-			2,853			-
General and administrative		11,932			7,483			54,332			34,251
Merger and transaction-related expenses		(562	)		4,692			29,496			7,112
Total expenses		147,370			102,334			646,660			361,149
Net gain on sale of real estate owned		1,309			730			4,673			1,133
Equity in income from unconsolidated joint ventures		199			115			738			266
Other income (expense), net		(1,016	)		(975	)		(2,395	)		(3,607	)
Loss before income taxes		(514	)		(21,599	)		(67,962	)		(59,621	)
Income tax (expense) benefit		(249	)		235			(736	)		(816	)
Net loss from continuing operations		(763	)		(21,364	)		(68,698	)		(60,437	)
Income (loss) from discontinued operations, net		(10,419	)		2,200			(17,787	)		(1,578	)
Net loss		(11,182	)		(19,164	)		(86,485	)		(62,015	)
Net loss attributable to non-controlling interests		689			7,026			5,218			23,152
Net loss attributable to Colony Starwood Homes		(10,493	)		(12,138	)		(81,267	)		(38,863	)
Net income attributable to preferred shareholders		-			(4	)		-			(16	)
Net loss available to common shareholders	$	(10,493	)	$	(12,142	)	$	(81,267	)	$	(38,879	)
Net loss per common share - basic and diluted
Net loss attributable to common shareholders	$	(0.10	)	$	(0.19	)	$	(0.80	)	$	(0.60	)

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ For GAAP purposes, the Merger resulted in a reverse acquisition of SWAY by CAH. Historical financial statements for periods prior to the Merger include only the results of operations and financial position of CAH. 11

Reconciliation to FFO and Core FFO

Dollars in thousands, except share and per share data

	Three Months Ended December 31,2016			Twelve Months Ended December 31,2016
Reconciliation of net loss to NAREIT FFO
Net loss attributable to common shareholders	$	(10,493	)	$	(81,267	)
Adjustments:
Depreciation and amortization on real estate assets		41,889			176,811
Impairment of real estate assets		220			750
Net gain on sale of real estate		(1,309	)		(4,673	)
Non-controlling interests		(689	)		(5,218	)
Discontinued operations, net (NPL/REO)		10,419			17,787
NAREIT FFO	$	40,037		$	104,190
NAREIT FFO per share (1)	$	0.37		$	0.96
Adjustments for Core FFO
NAREIT FFO	$	40,037		$	104,190
Amortization of deferred financing costs, debt premium discounts and non-cash interest expense from interest rate caps		10,344			38,290
Merger and transaction-related expenses		(562	)		29,496
Integration Costs (2)		294			7,971
Share-based compensation		931			2,853
Core FFO	$	51,044		$	182,800
Core FFO per share (1)	$	0.47		$	1.69

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated

⁽¹⁾ Weighted-average common shares total 108,032,444 and 108,265,578 for the three and twelve month periods, respectively. These share counts are comprised of 101,492,960 and 101,633,326 weighted-average common shares outstanding and 139,484 and 232,252 unvested RSUs for the three and twelve month periods ended, respectively, and outstanding OP units exchangeable for 6,400,000 common shares. ⁽²⁾ Please see Appendix A for a definition of Integration Costs, and Appendix B for a summary of Integration Costs through the three and twelve months ended December 31, 2016.  We believe that identifying Integration Costs is useful for investors as it allows investors to separate these costs from the core operating performance of our Single-Family Rental business. 12

Income Statement Bridge

Quarter-to-date normalizations for Merger and Transaction, Integration and NPL business

Dollars in thousands

	Three Months Ended December 31, 2016
	(+)			(-)			(-)			(-)			(=)			Single-Family Rental
	Consolidated Results			Merger and Transaction-Related Expenses			Integration Costs (1)			NPL			Total Single Family Rental			Same Store Homes		Stabilized Homes		Development Homes			Other Homes
																	28,146		2,507		412			266
Revenues
Rents from single-family properties	$	137,725											$	137,725		$	125,937	$	11,377	$	5		$	406
Fees from single-family properties		3,694												3,694			3,339		335		-			20
Tenant chargebacks		2,320												2,320			2,109		189		-			23
Asset management fees		2,625												2,625			-		-		-			2,625
Total revenues		146,364			-			-			-			146,364			131,385		11,901		5			3,073
Operating expenses
Property and maintenance costs		19,225												19,225			16,929		1,428		118			750
Real estate taxes, insurance, HOA costs		26,973												26,973			23,886		2,526		126			435
Property management		8,276												8,276			6,459		512		117			1,188
Total operating expenses		54,474			-			-			-			54,474		$	47,274	$	4,466	$	361		$	2,373
Net operating income		91,890			-			-			-			91,890			84,111		7,435		(356	)		700
Non-operating expenses
General and administrative		12,863						294						12,569
Merger and transaction-related expenses		(562	)		(562	)								-
Depreciation and amortization		42,945												42,945
Interest expense		37,430												37,430
Other expense /(income)		(23	)											(23	)
Total non-operating expenses		92,653			(562	)		294			-			92,921
Net (loss) from continuing operations		(763	)		562			(294	)		-			(1,031	)
Loss from discontinued operations (NPL/REO)		(10,419	)								(10,419	)		-
Net (loss)		(11,182	)		562			(294	)		(10,419	)		(1,031	)
Net loss attributable to non-controlling interests		689												689
Net (loss) available to common shareholders	$	(10,493	)	$	562		$	(294	)	$	(10,419	)	$	(342	)

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Please see Appendix A for a definition of Integration Costs, and Appendix B for a summary of Integration Costs through the three and twelve months ended December 31, 2016.  We believe that identifying Integration Costs is useful for investors as it allows investors to separate these costs from the core operating performance of our Single-Family Rental business. 13

Income Statement Bridge

Year-to-date normalizations for Merger and Transaction, Integration and NPL business

Dollars in thousands

	Twelve Months Ended December 31, 2016
	(+)			(-)			(-)			(-)			(=)			Single-Family Rental
	Consolidated Results			Merger and Transaction-Related Expenses			Integration Costs (1)			NPL			Total Single Family Rental			Same Store Homes		Stabilized Homes		Development Homes			Other Homes
																	22,363		8,290		412			266
Revenues
Rents from single-family properties	$	538,191											$	538,191		$	384,167	$	148,119	$	7		$	5,898
Fees from single-family properties		14,017												14,017			9,982		3,822		-			213
Tenant chargebacks		11,827												11,827			8,536		2,588		-			704
Asset management fees		11,647												11,647			-		-		-			11,647
Total revenues		575,682			-			-			-			575,682			402,685		154,529		7			18,462
Operating expenses
Property and maintenance costs		83,451												83,451			58,362		20,604		483			4,002
Real estate taxes, insurance, HOA costs		110,112												110,112			76,722		30,075		120			3,195
Property management		34,736						2,108						32,628			20,182		7,289		454			4,703
Total operating expenses		228,299			-			2,108			-			226,191		$	155,266	$	57,968	$	1,057		$	11,900
Net operating income		347,383			-			(2,108	)		-			349,491			247,419		96,561		(1,050	)		6,561
Non-operating expenses
General and administrative		57,185						5,863						51,322
Merger and transaction-related expenses		29,496			29,496									-
Depreciation and amortization		178,763												178,763
Interest expense		152,167												152,167
Other expense /(income)		(1,530	)											(1,530	)
Total non-operating expenses		416,081			29,496			5,863			-			380,722
Net (loss) from continuing operations		(68,698	)		(29,496	)		(7,971	)		-			(31,231	)
Loss from discontinued operations (NPL/REO)		(17,787	)								(17,787	)		-
Net (loss)		(86,485	)		(29,496	)		(7,971	)		(17,787	)		(31,231	)
Net loss attributable to non-controlling interests		5,218												5,218
Net (loss) available to common shareholders	$	(81,267	)	$	(29,496	)	$	(7,971	)	$	(17,787	)	$	(26,013	)

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise.

⁽¹⁾ Please see Appendix A for a definition of Integration Costs, and Appendix B for a summary of Integration Costs through the three and twelve months ended December 31, 2016.  We believe that identifying Integration Costs is useful for investors as it allows investors to separate these costs from the core operating performance of our Single-Family Rental business. 14

NOI by Segment

Year-over-year comparison

Dollars in thousands

	Three Months Ended December 31, (1)									Twelve Months Ended December 31, (1)
	2016			2015 (2)			Change %			2016			2015 (2)			Change %
Rental and other property revenues:
Same Store Homes	$	131,385		$	124,704			5.4	%	$	402,685		$	379,202			6.2	%
Stabilized Homes		11,901			5,074			134.5	%		154,529			100,704			53.4	%
Development Homes		5			3			66.7	%		7			10			-30.0	%
Other Homes		3,073			3,428			-10.3	%		18,461			18,555			-0.5	%
Total rental and other property revenues	$	146,364		$	133,209			9.9	%	$	575,682		$	498,471			15.5	%
Property operating expenses:
Same Store Homes	$	47,274		$	51,862			-8.8	%	$	155,266		$	156,285			-0.7	%
Stabilized Homes		4,466			3,090			44.5	%		57,968			46,446			24.8	%
Development Homes		361			175			106.3	%		1,057			749			41.2	%
Other Homes		2,373			3,759			-36.9	%		11,900			17,277			-31.1	%
Total property operating expenses	$	54,474		$	58,886			-7.5	%	$	226,191		$	220,757			2.5	%
Net operating income (NOI):
Same Store Homes	$	84,111		$	72,842			15.5	%	$	247,419		$	222,917			11.0	%
Stabilized Homes		7,435			1,984			274.7	%		96,561			54,258			78.0	%
Development Homes		(356	)		(172	)		107.0	%		(1,050	)		(739	)		42.1	%
Other Homes		700			(331	)		-311.8	%		6,561			1,278			413.4	%
Total property NOI	$	91,890		$	74,323			23.6	%	$	349,491		$	277,714			25.8	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Colony Starwood Home’s Quarterly Same Store and Full Year Same Store property counts for the quarter-to-date and the year-to-date are 28,146 and 22,363, respectively. ⁽²⁾ 2015 represents pro forma financials for the combined Company, but does not reflect reimbursement revenue or the related expenses associated with the management of properties owned by third parties. 15

      III. Selected Additional Information

16

Home Count by Portfolio

As of December 31, 2016

Market:	Full Year Same Store Homes		Full Year Stabilized Homes		Quarterly Same Store Homes		Quarterly Stabilized Homes		Development Homes		Net Owned Homes (1)		Owned Homes Occupied % (1)		Other Homes (2)		Non-owned, Managed Homes		Total Homes
Atlanta		4,853		678		5,439		92		9		5,540		96.5%		47		312		5,899
Tampa		2,710		1,003		3,505		208		-		3,713		94.7%		13		219		3,945
Miami		2,089		1,585		3,197		477		7		3,681		95.6%		40		144		3,865
Southern California		2,564		212		2,732		44		5		2,781		96.7%		26		1,416		4,223
Houston		2,226		488		2,616		98		-		2,714		94.0%		34		-		2,748
Dallas		1,113		967		1,847		233		25		2,105		93.6%		63		-		2,168
Denver		1,086		906		1,691		301		48		2,040		92.3%		3		-		2,043
Orlando		1,328		611		1,766		173		-		1,939		95.3%		4		10		1,953
Las Vegas		1,619		100		1,708		11		-		1,719		95.6%		3		188		1,910
Phoenix		1,305		84		1,329		60		95		1,484		89.8%		11		446		1,941
Top 10 Markets		20,893		6,634		25,830		1,697		189		27,716		94.9%		244		2,735		30,695
Charlotte - Raleigh		161		772		643		290		146		1,079		82.5%		1		-		1,080
Northern California		730		235		773		192		6		971		96.7%		3		827		1,801
Other Markets		579		649		900		328		71		1,299		89.5%		18		402		1,719
Total		22,363		8,290		28,146		2,507		412		31,065		94.3%		266		3,964		35,295

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Excludes Other Homes and REO properties associated with the NPL business. ⁽²⁾ Includes 156 homes held for sale and 110 homes not in service.   17

Asset Rollforward

Three months ended December 31, 2016

Market:	Properties as of 09/30/16 (1)		Acquisitions (1)		Dispositions (1)			Properties as of 12/31/16 (1)
Atlanta		5,653		17		(83	)		5,587
Tampa		3,730		3		(7	)		3,726
Miami		3,750		-		(29	)		3,721
Southern California		2,827		-		(20	)		2,807
Houston		2,791		-		(43	)		2,748
Dallas		2,112		62		(6	)		2,168
Denver		1,984		63		(4	)		2,043
Orlando		1,950		-		(7	)		1,943
Las Vegas		1,723		6		(7	)		1,722
Phoenix		1,388		111		(4	)		1,495
Top 10 Markets		27,908		262		(210	)		27,960
Charlotte - Raleigh		893		187		-			1,080
Northern California		977		-		(3	)		974
Other Markets (2)		1,232		100		(15	)		1,317
Total Owned Homes		31,010		549		(228	)		31,331
Non-owned, Managed Homes		4,016		2		(54	)		3,964
Total Homes		35,026		551		(282	)		35,295

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Excludes REO properties associated with the NPL business. ⁽²⁾ All 100 acquisitions were made in the Nashville market.   18

Debt Summary

As of December 31, 2016

Dollars in millions

	Amount outstanding	Interest rate (1)	Initial maturity		Extensions	Full maturity
Securitizations:
CAH 2014-1	$491	1mL+171bps	May-17		Two, one-year	May-19
CAH 2014-2	$548	1mL+174bps	Jul-16		Three, one-year	Jul-19
SWAY 2014-1 (2)	$499	1mL+249bps	Jan-17		Three, one-year	Jan-20
CAH 2015-1 (2)	$638	1mL+197bps	Jul-17		Three, one-year	Jul-20
CSH 2016-1 (2)	$485	1mL+230bps	Jul-18		Three, one-year	Jul-21
CSH 2016-2 (2)	$580	1mL+194bps	Nov-18		Three, one-year	Nov-21
Total securitizations	$3,241
Secured credit facilities:
CAH credit facility	$0	3mL+300bps	Jul-17		None	Jul-17
SWAY credit facility	$109	1mL+295bps	Jun-17	(3)	Eight months	Feb-18
Total secured credit facilities	$109
Convertible debt:
Convertible notes (due 2017)	$173	4.5%	Oct-17		None	Oct-17
Convertible notes (due 2019)	$230	3.0%	Jul-19		None	Jul-19
Total convertible debt	$403
Total single-family REIT debt	$3,753
Debt related to assets held for sale (4)	$19	1mL+238bps	Mar-17		6-months	Sep-17
Total debt outstanding	$3,772

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Colony Starwood Homes has entered into three interest rate swap contracts including a February 2016 contract with a notional of $1.6B at 2.75%, a June 2016 contract with a notional of $450M at 3.32%, and a January 2017 agreement with a notional of $550M at 3.59%. The stated interest rates on this page do not include the impact of the Colony Starwood interest rate swaps. ⁽²⁾ Securitizations SWAY 2014-1, CAH 2015-1 and CSH 2016-2 are stated net of class G certificates in the amounts of $26.6M, $33.7M, and $30.6M respectively; CSH 2016-1 is net of class F and G certificates totaling $50.3M. ⁽³⁾ Colony Starwood Homes amended the initial term of the SWAY credit facility from February 2017 to June 2017 without extending the full maturity date. ⁽⁴⁾ Represents NPLrepurchase facility. 19

Capitalization Update

Inclusive of events subsequent to December 31, 2016

Capitalization Update Inclusive of events subsequent to December 31, 2016 Capitalization Debt Terms Summary Dollars in millions $7,368 $3,845 $3,523 Debt: 52% Equity market capitalization: (3) 48% Blended Int. Rate Initial Maturity Fully-Extended Maturity Convertible notes due ’17 $5 4.50% Oct '17 Oct '17 Convertible notes due ’19 $230 3.00% Jul '19 Jul '19 Convertible notes due ’22 $345  3.50% Jan ‘22 Jan ‘22 Fixed rate securitization debt(1)(4) $2,600 3.03% Aug'17 Jun ’20 Secured credit facilities $24 L + 3.00% Jun ’17 Feb ’18 Floating rate securitization debt(2)(4) $641 L + 1.99% Nov '17 Jul '20 Subsequent Events Summary In January the Company sold $345 million of 3.50% convertible senior notes due 2022 A portion of the sale proceeds were used to repurchase outstanding 4.50% convertible senior notes, reducing the 2017 notes outstanding from $173 to $5 million due 2022 Additional proceeds were used to pay down secured credit facilities by approximately $84 million and pay off $19 million of debt related to discontinued operations Remaining proceeds will fund ongoing asset acquisitions or be utilized for general corporate purposes

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Effectively fixed via swap contract. Rate based on weighted average for CSH’s swap contracts, including $1.6Bn contract with average rate of 2.75%, $450MM with average rate of 3.32%, and $550MM with average rate of 3.59%. ⁽²⁾ Based on weighted average for CSH’s securitizations; weighted by outstanding balances. ⁽³⁾ Equity market capitalization based on February 24, 2017 closing price of $32.54 and 108.3 million weighted average shares and units outstanding. ⁽⁴⁾ Securitizations SWAY 2014-1, CAH 2015-1 and CSH 2016-2 are stated net of class G certificates in the amounts of $26.6M, $33.7M, $30.6M respectively; CSH 2016-1 is net of class F and G certificates totaling $50.3M. 20

      IV. Same Store Information

21

Portfolio Overview – Quarterly Same Store

As of December 31, 2016

Market:	Quarterly Same Store Homes		Occupancy %		Average Acquisition Cost per Home		Average Investment		Average Home Size (sq. ft.)		Weighted Average Home Age (years)		Average Monthly Rent per Occupied Home
Atlanta		5,439		96.7%	$	127,684	$	145,769		2,003		22	$	1,304
Tampa		3,505		94.8%		156,833		180,976		1,721		28		1,479
Miami		3,197		95.7%		206,872		224,140		1,723		39		1,815
Southern California		2,732		96.8%		272,611		308,295		1,713		40		2,051
Houston		2,616		94.1%		151,253		155,272		1,937		20		1,501
Dallas		1,847		94.8%		178,068		185,615		2,095		22		1,641
Denver		1,691		94.4%		198,635		218,661		1,722		36		1,750
Orlando		1,766		95.2%		138,864		166,248		1,726		30		1,391
Las Vegas		1,708		95.6%		187,732		204,346		2,033		17		1,420
Phoenix		1,329		95.8%		137,889		153,735		1,702		26		1,184
Top 10 Markets		25,830		95.6%		172,566		191,587		1,848		28		1,551
Charlotte-Raleigh		643		94.7%		184,903		208,401		2,351		13		1,644
Northern California		773		97.7%		229,317		252,930		1,436		47		1,796
Other Markets		900		94.1%		165,875		173,165		1,700		35		1,670
Total		28,146		95.5%	$	174,192	$	193,066		1,844		28	$	1,564

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

22

Portfolio Overview – Full Year Same Store

As of December 31, 2016

Market:	Full Year Same Store Homes		Occupancy %		Average Acquisition Cost per Home		Average Investment		Average Home Size (sq. ft.)		Weighted Average Home Age (years)		Average Monthly Rent per Occupied Home
Atlanta		4,853		96.8%	$	124,207	$	143,605		1,980		23	$	1,290
Tampa		2,710		95.2%		155,742		180,332		1,720		27		1,470
Miami		2,089		96.7%		200,906		214,377		1,673		41		1,760
Southern California		2,564		96.8%		269,390		305,373		1,714		40		2,045
Houston		2,226		94.4%		148,279		152,709		1,926		18		1,482
Dallas		1,113		94.9%		160,852		166,214		1,968		24		1,548
Denver		1,086		93.9%		179,202		201,248		1,664		37		1,718
Orlando		1,328		95.4%		129,490		158,358		1,694		30		1,352
Las Vegas		1,619		95.8%		185,562		202,000		2,019		17		1,414
Phoenix		1,305		96.0%		137,162		153,068		1,698		26		1,183
Top 10 Markets		20,893		95.9%		166,937		186,382		1,827		28		1,517
Charlotte-Raleigh		161		95.0%		152,637		172,685		2,074		14		1,496
Northern California		730		97.8%		227,602		251,419		1,427		47		1,798
Other Markets		579		94.0%		150,012		157,755		1,595		39		1,580
Total		22,363		95.9%	$	168,375	$	187,663		1,810		29	$	1,528

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

23

Same Store Year-Over-Year Results

Dollars in thousands

	Quarterly Same Store (1)							Full Year Same Store (1)
	Three Months Ended December 31,							Twelve Months Ended December 31,
	2016 (2)		2015 (3)		% Change			2016 (2)		2015 (3)		% Change
Revenues:
Rental income	$	125,937	$	118,695		6.1	%	$	384,167	$	361,216		6.4	%
Fee income		3,339		2,514		32.8	%		9,982		7,244		37.8	%
Resident chargebacks		2,109		3,495		-39.7	%		8,536		10,742		-20.5	%
Total rental and other property revenue	$	131,385	$	124,704		5.4	%	$	402,685	$	379,202		6.2	%
Expenses:
Repairs, maintenance and turn costs	$	10,037	$	10,364		-3.2	%	$	37,512	$	36,492		2.8	%
Real estate taxes, insurance and HOA costs		23,886		26,532		-10.0	%		76,722		73,811		3.9	%
Property management costs		6,459		8,229		-21.5	%		20,182		26,001		-22.4	%
Bad debt expense		2,240		2,660		-15.8	%		6,508		6,000		8.5	%
Other operating expenses		4,652		4,077		14.1	%		14,342		13,981		2.6	%
Total property operating expenses	$	47,274	$	51,862		-8.8	%	$	155,266	$	156,285		-0.7	%
Net Operating Income	$	84,111	$	72,842		15.5	%	$	247,419	$	222,917		11.0	%
Net Operating Income margin		64.0%		58.4%					61.4%		58.8%
Core Net Operating Income margin		66.2%		61.4%					63.8%		61.5%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Colony Starwood Home’s Quarterly Same Store and Full Year Same Store property counts for the quarter-to-date and the year-to-date measurements are 28,146 and 22,363, respectively. ⁽²⁾ 2016 figures have been adjusted for Integration Costs; please see Income Statement Bridge slide (pages 13 and 14). ⁽³⁾ 2015 represents proforma financials for the merged Company. 24

Same Store Core Year-Over-Year Results

Dollars in thousands

	Quarterly Same Store (1)									Full Year Same Store (1)
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2016 (2)			2015 (3)			% Change			2016 (2)			2015 (3)			% Change
Revenues:
Rental income	$	125,937		$	118,695			6.1	%	$	384,167		$	361,216			6.4	%
Fee income		3,339			2,514			32.8	%		9,982			7,244			37.8	%
Bad debt expense		(2,240	)		(2,660	)		-15.8	%		(6,508	)		(6,000	)		8.5	%
Core rental revenue	$	127,036		$	118,549			7.2	%	$	387,641		$	362,460			6.9	%
Expenses:
Total property operating expenses	$	47,274		$	51,862			-8.8	%	$	155,266		$	156,285			-0.7	%
Resident chargebacks		(2,109	)		(3,495	)		-39.7	%		(8,536	)		(10,742	)		-20.5	%
Bad debt expense		(2,240	)		(2,660	)		-15.8	%		(6,508	)		(6,000	)		8.5	%
Core property operating expenses	$	42,925		$	45,707			-6.1	%	$	140,222		$	139,543			0.5	%
Core Net Operating Income	$	84,111		$	72,842			15.5	%	$	247,419		$	222,917			11.0	%
Core Net Operating Income margin		66.2	%		61.4	%					63.8	%		61.5	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Colony Starwood Home’s Quarterly Same Store and Full Year Same Store property counts for the quarter-to-date and the year-to-date measurements are 28,146 and 22,363, respectively. ⁽²⁾ 2016 figures have been adjusted for Integration Costs; please see Income Statement Bridge slide (pages 13 and 14). ⁽³⁾ 2015 represents proforma financials for the merged Company. 25

Results by Market – Quarterly Same Store

Three months ended December 31, 2016

Dollars in thousands

Market:	Same Store Homes		% of Total Same Store Homes			Revenues		Expenses		Net Operating Income		% of Total Net Operating Income			Core Operating Margin
Atlanta		5,439		19.3	%	$	21,171	$	7,079	$	14,092		16.8	%		68.6	%
Tampa		3,505		12.5	%		15,418		5,748		9,670		11.5	%		64.9	%
Miami		3,197		11.4	%		17,187		6,813		10,374		12.3	%		62.6	%
Southern California		2,732		9.7	%		16,771		5,729		11,042		13.1	%		68.0	%
Houston		2,616		9.3	%		11,492		5,320		6,172		7.3	%		55.9	%
Dallas		1,847		6.6	%		8,894		3,460		5,434		6.5	%		62.3	%
Denver		1,691		6.0	%		9,005		2,309		6,696		8.0	%		77.7	%
Orlando		1,766		6.3	%		7,388		2,866		4,522		5.4	%		63.7	%
Las Vegas		1,708		6.1	%		7,496		2,219		5,277		6.3	%		72.5	%
Phoenix		1,329		4.7	%		4,752		1,445		3,307		3.9	%		71.6	%
Top 10 Markets		25,830		91.8	%		119,574		42,988		76,586		91.1	%		66.2	%
Charlotte - Raleigh		643		2.3	%		3,111		965		2,146		2.6	%		70.7	%
Northern California		773		2.7	%		4,293		1,323		2,970		3.5	%		72.2	%
Other Markets		900		3.2	%		4,407		1,999		2,408		2.9	%		56.4	%
Total		28,146		100.0	%	$	131,385	$	47,274	$	84,111		100.0	%		66.2	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

26

Results by Market – Full Year Same Store

Twelve months ended December 31, 2016

Dollars in thousands

Market:	Same Store Homes		% of Total Same Store Homes			Revenues		Expenses		Net Operating Income		% of Total Net Operating Income			Core Operating Margin
Atlanta		4,853		21.7	%	$	75,083	$	27,373	$	47,710		19.3	%		66.7	%
Tampa		2,710		12.1	%		46,413		19,886		26,527		10.7	%		59.1	%
Miami		2,089		9.3	%		42,601		18,947		23,654		9.6	%		57.5	%
Southern California		2,564		11.5	%		61,680		21,492		40,188		16.2	%		67.2	%
Houston		2,226		10.0	%		38,363		18,805		19,558		7.9	%		52.7	%
Dallas		1,113		5.0	%		20,090		8,125		11,965		4.8	%		61.4	%
Denver		1,086		4.9	%		21,994		6,154		15,840		6.4	%		75.6	%
Orlando		1,328		5.9	%		21,297		9,055		12,242		4.9	%		60.0	%
Las Vegas		1,619		7.2	%		27,732		8,644		19,088		7.7	%		70.9	%
Phoenix		1,305		5.8	%		18,392		5,880		12,512		5.1	%		71.0	%
Top 10 Markets		20,893		93.4	%		373,645		144,361		229,284		92.7	%		63.7	%
Charlotte - Raleigh		161		0.7	%		2,879		920		1,959		0.8	%		70.5	%
Northern California		730		3.3	%		15,722		5,140		10,582		4.3	%		70.4	%
Other Markets		579		2.6	%		10,439		4,846		5,594		2.3	%		55.7	%
Total		22,363		100.0	%	$	402,685	$	155,266	$	247,419		100.0	%		63.8	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

27

Lease Outcomes – Quarterly Same Store

As of December 31, 2016

Based on Quarterly Same Store property count of 28,146 homes

	Expiration Outcome												Turnover (4)
Market:	Expiration Count (1)		Renewed (2)		Retained (3)		Renewal Rate			Retention Rate			QTD Turnover Rate (5)			YTD Turnover Rate			YTD Annualized Turnover Rate(6)
Atlanta		915		604		676		66.0	%		73.9	%		7.5	%		36.2	%		36.2	%
Tampa		644		418		447		64.9	%		69.4	%		8.8	%		38.8	%		38.8	%
Miami		475		316		346		66.5	%		72.8	%		6.8	%		30.8	%		30.8	%
Southern California		504		370		408		73.4	%		81.0	%		6.4	%		28.5	%		28.5	%
Houston		379		247		268		65.2	%		70.7	%		8.1	%		35.2	%		35.2	%
Dallas		290		160		192		55.2	%		66.2	%		7.9	%		36.1	%		36.1	%
Denver		234		127		153		54.3	%		65.4	%		8.6	%		35.4	%		35.4	%
Orlando		290		191		207		65.9	%		71.4	%		7.9	%		37.0	%		37.0	%
Las Vegas		266		169		188		63.5	%		70.7	%		7.9	%		37.6	%		37.6	%
Phoenix		192		116		128		60.4	%		66.7	%		6.8	%		34.8	%		34.8	%
Top 10 Markets		4,189		2,718		3,013		64.9	%		71.9	%		7.6	%		35.0	%		35.0	%
Charlotte-Raleigh		132		91		96		68.9	%		72.7	%		7.5	%		42.8	%		42.8	%
Northern California		117		87		94		74.4	%		80.3	%		6.2	%		26.8	%		26.8	%
Other Markets		83		54		65		65.1	%		78.3	%		6.2	%		29.9	%		29.9	%
Total		4,521		2,950		3,268		65.3	%		72.3	%		7.6	%		34.8	%		34.8	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Represents the number of leases that expired within the quarter, less early terminations. ⁽²⁾ Includes lease expirations where the lease was renewed (excludes month-to-month leases). ⁽³⁾ Includes lease expirations where the resident did not "move out". ⁽⁴⁾ Population limited to homes that realized resident turnover within the subject period, including out of period lease expirations where the lease was terminated early and month-to-month leases. ⁽⁵⁾ The number of homes that become vacant during the subject period as a percentage of homes with an initial move-in ready status. ⁽⁶⁾ The number of homes that become vacant during the subject period as an annualized percentage of homes with an initial move-in ready status. 28

Lease Outcomes – Full Year Same Store

As of December 31, 2016

Based on Full Year Same Store property count of 22,363 homes

	Expiration Outcome												Turnover (4)
Market:	Expiration Count (1)		Renewed (2)		Retained (3)		Renewal Rate			Retention Rate			QTD Turnover Rate (5)			YTD Turnover Rate			YTD Annualized Turnover Rate (6)
Atlanta		742		497		553		67.0	%		74.5	%		7.2	%		36.0	%		36.0	%
Tampa		428		281		297		65.7	%		69.4	%		8.2	%		39.4	%		39.4	%
Miami		235		154		174		65.5	%		74.0	%		5.8	%		29.8	%		29.8	%
Southern California		454		333		367		73.3	%		80.8	%		6.5	%		29.0	%		29.0	%
Houston		319		206		225		64.6	%		70.5	%		8.1	%		36.1	%		36.1	%
Dallas		168		87		108		51.8	%		64.3	%		8.4	%		36.1	%		36.1	%
Denver		158		86		102		54.4	%		64.6	%		9.4	%		34.9	%		34.9	%
Orlando		221		146		158		66.1	%		71.5	%		7.9	%		36.9	%		36.9	%
Las Vegas		247		158		177		64.0	%		71.7	%		7.7	%		37.2	%		37.2	%
Phoenix		182		113		124		62.1	%		68.1	%		6.4	%		34.6	%		34.6	%
Top 10 Markets		3,154		2,061		2,285		65.3	%		72.4	%		7.4	%		35.0	%		35.0	%
Charlotte-Raleigh		25		18		18		72.0	%		72.0	%		6.8	%		44.1	%		44.1	%
Northern California		99		74		79		74.7	%		79.8	%		6.2	%		27.5	%		27.5	%
Other Markets		39		26		34		66.7	%		87.2	%		6.2	%		29.2	%		29.2	%
Total		3,317		2,179		2,416		65.7	%		72.8	%		7.3	%		34.7	%		34.7	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Represents the number of leases that expired within the quarter, less early terminations. ⁽²⁾ Lease expirations where the lease was renewed (excludes month-to-month leases). ⁽³⁾ Lease expirations where the resident did not “move out”. ⁽⁴⁾ Population limited to assets that realized resident turnover within the subject period, including out of period lease expirations where the lease was terminated early and month-to-month leases. ⁽⁵⁾ The number of assets that become unoccupied during the subject period as a percentage of homes with an initial move-in ready status. ⁽⁶⁾ The number of assets that become unoccupied during the subject period as an annualized percentage of homes with an initial move-in ready status. 29

Rent Growth – Quarterly Same Store

Quarter-to-Date as of December 31, 2016

Based on Quarterly Same Store property count of 28,146 homes

	Renewals					Replacement Rent								Escalations on Multi-Year Leases			Total Rent Growth
Market:	Total Leases		Renewal Rent Growth			Total Leases		Replacement Rent Growth			Blended Rent Growth			Total Leases		Average Rent Change (1)	Total Leases		Average Rent Change (2)
Atlanta		571		4.7	%		463		3.5	%		4.2	%		94	3.0%		1,128		4.1	%
Tampa		407		3.7	%		319		1.5	%		2.7	%		40	3.0%		766		2.8	%
Miami		313		3.3	%		234		1.9	%		2.7	%		116	3.0%		663		2.8	%
Southern California		403		5.3	%		186		4.8	%		5.1	%		23	3.0%		612		5.1	%
Houston		248		3.8	%		221		-6.2	%		-1.1	%		75	3.0%		544		-0.4	%
Dallas		161		5.7	%		123		2.1	%		4.1	%		44	3.0%		328		4.0	%
Denver		157		8.3	%		123		2.7	%		5.8	%		24	3.0%		304		5.6	%
Orlando		197		4.6	%		145		3.4	%		4.1	%		18	3.0%		360		4.1	%
Las Vegas		182		4.3	%		124		2.5	%		3.5	%		-	-		306		3.5	%
Phoenix		123		6.3	%		73		6.9	%		6.5	%		12	3.0%		208		6.3	%
Top 10 Markets		2,762		4.7	%		2,011		1.9	%		3.5	%		446	3.0%		5,219		3.5	%
Charlotte-Raleigh		95		5.1	%		52		0.7	%		3.4	%		-	-		147		3.4	%
Northern California		87		7.2	%		45		9.5	%		7.9	%		32	3.0%		164		7.0	%
Other Markets		60		4.3	%		61		-2.0	%		0.7	%		42	3.0%		163		1.6	%
Total		3,004		4.8	%		2,169		1.9	%		3.6	%		520	3.0%		5,693		3.5	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Represents average rent growth on the population of escalating multi-year leases taking effect for the three months ended December 31, 2016, defined as average of the percentage change in rental rate for all multi-year leases in the period. ⁽²⁾ Represents weighted average rent growth on all replacement, renewals and escalating multi-year leases for the three months ended December 31, 2016. 30

Rent Growth – Full Year Same Store

Quarter-to-Date as of December 31, 2016

Based on Full Year Same Store property count of 22,363 homes

	Renewals					Replacement Rent								Escalations on Multi-Year Leases			Total Rent Growth
Market:	Total Leases		Renewal Rent Growth			Total Leases		Replacement Rent Growth			Blended Rent Growth			Total Leases		Average Rent Change (1)	Total Leases		Average Rent Change (2)
Atlanta		488		4.7	%		409		3.8	%		4.3	%		75	3.0%		972		4.2	%
Tampa		280		3.7	%		266		1.4	%		2.6	%		29	3.0%		575		2.6	%
Miami		161		3.6	%		165		2.7	%		3.1	%		91	3.0%		417		3.1	%
Southern California		368		5.3	%		181		4.9	%		5.2	%		20	3.0%		569		5.1	%
Houston		211		4.0	%		201		-5.7	%		-1.0	%		65	3.0%		477		-0.3	%
Dallas		91		6.9	%		94		3.4	%		5.0	%		33	3.0%		218		4.8	%
Denver		116		8.5	%		93		3.9	%		6.4	%		16	3.0%		225		6.2	%
Orlando		151		4.7	%		120		3.9	%		4.3	%		14	3.0%		285		4.3	%
Las Vegas		171		4.3	%		118		2.7	%		3.6	%		-	-		289		3.6	%
Phoenix		120		6.3	%		70		6.9	%		6.6	%		12	3.0%		202		6.3	%
Top 10 Markets		2,157		4.9	%		1,717		2.3	%		3.7	%		355	3.0%		4,229		3.7	%
Charlotte-Raleigh		18		3.8	%		13		4.2	%		4.0	%		-	-		31		4.0	%
Northern California		75		7.1	%		44		9.2	%		7.8	%		28	3.0%		147		6.9	%
Other Markets		36		5.3	%		41		-1.4	%		1.4	%		33	3.0%		110		2.1	%
Total		2,286		5.0	%		1,815		2.4	%		3.8	%		416	3.0%		4,517		3.8	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Represents average rent growth on the population of escalating multi-year leases taking effect for the three months ended December 31, 2016, defined as average of the percentage change in rental rate for all multi-year leases in the period. ⁽²⁾ Represents weighted average rent growth on all replacement, renewals and escalating multi-year leases for the three months ended December 31, 2016. 31

Rent Growth – Full Year Same Store

Year-to-Date as of December 31, 2016

Based on Full Year Same Store property count of 22,363 homes

	Renewals					Replacement Rent								Escalations on Multi-Year Leases			Total Rent Growth
Market:	Total Leases		Renewal Rent Growth			Total Leases		Replacement Rent Growth			Blended Rent Growth			Total Leases		Average Rent Change (1)	Total Leases		Average Rent Change (2)
Atlanta		2,573		5.1	%		1,815		5.1	%		5.1	%		338	3.0%		4,726		4.9	%
Tampa		1,517		4.4	%		1,036		3.4	%		4.0	%		191	3.0%		2,744		3.9	%
Miami		953		4.1	%		631		4.0	%		4.1	%		400	3.0%		1,984		3.9	%
Southern California		1,652		5.7	%		758		5.6	%		5.7	%		89	3.0%		2,499		5.6	%
Houston		1,065		4.2	%		828		-1.5	%		1.6	%		281	3.0%		2,174		1.9	%
Dallas		557		5.2	%		409		4.5	%		4.9	%		139	3.0%		1,105		4.6	%
Denver		603		8.7	%		362		7.7	%		8.4	%		62	3.0%		1,027		8.0	%
Orlando		772		5.1	%		523		4.6	%		4.9	%		60	3.0%		1,355		4.8	%
Las Vegas		880		4.2	%		621		3.1	%		3.7	%		3	3.0%		1,504		3.7	%
Phoenix		675		6.0	%		450		9.0	%		7.2	%		45	3.0%		1,170		7.1	%
Top 10 Markets		11,247		5.1	%		7,433		4.2	%		4.7	%		1,608	3.0%		20,288		4.6	%
Charlotte-Raleigh		85		4.7	%		65		5.1	%		4.9	%		-	-		150		4.9	%
Northern California		428		6.9	%		195		11.7	%		8.4	%		86	3.0%		709		7.7	%
Other Markets		228		4.3	%		195		-0.2	%		2.1	%		100	3.0%		523		2.4	%
Total		11,988		5.2	%		7,888		4.3	%		4.8	%		1,794	3.0%		21,670		4.7	%

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Represents average rent growth on the population of escalating multi-year leases taking effect for the twelve months ended December 31, 2016, defined as average of the percentage change in rental rate for all multi-year leases in the period. ⁽²⁾ Represents weighted average rent growth on all replacement, renewals and escalating multi-year leases for the twelve months ended December 31, 2016. 32

Cost to Maintain a Home

Dollars in thousands, except per home amounts

	Quarterly Same Store (1)					Full Year Same Store (1)
	Three Months Ended December 31, 2016					Twelve Months Ended December 31, 2016
Category	Total Cost		Cost per Home			Total Cost		Cost per Home
Repairs, maintenance and turnover expenses
Repairs and maintenance	$	4,467	$	159		$	17,885	$	800
Turnover-related costs (2)		2,994		106			10,898		487
Landscaping and pool services		558		20			3,127		140
Total repairs, maintenance and turnover expenses	$	8,019	$	285		$	31,910	$	1,427
Recurring capital expenditures (3)(4)
Capital replacements	$	7,482	$	266		$	24,173	$	1,081
Turnover-related capital costs		3,608		128			11,562		517
Total recurring capital expenditures	$	11,090	$	394		$	35,735	$	1,598
Total repairs and maintenance and recurring capital expenditures	$	19,109	$	679		$	67,645	$	3,025
Same Store Home Count				28,146					22,363
					��
Revenue Enhancing Capital Expenditures (5)
Total Revenue Enhancing Capital Expenditures	$	634	$	23		$	2,932	$	131

Please see the Appendix at the back of this presentation for certain definitions, explanations and reconciliations of non-GAAP financial measures. All information is as of December 31, 2016 unless otherwise indicated.

⁽¹⁾ Colony Starwood Home’s Quarterly Same Store and Full Year Same Store property counts for the quarter-to-date and the year-to-date measurements are 28,146 and 22,363, respectively. ⁽²⁾ Turnover costs are presented net of total billed resident chargebacks at move-out; some chargebacks may present collection risk if tenant security deposits are insufficient. ⁽³⁾ Excludes initial renovation and re-development expenditures. ⁽⁴⁾ Replacements and expenditures necessary to preserve and maintain the value and functionality of the home and its systems. ⁽⁵⁾ Includes capital improvements and additions intended to increase the revenue potential for a given property, which we track separately from recurring capital expenditures. 33

      V. Earnings Guidance

34

2017 Guidance

Colony Starwood Homes 2017 full-year guidance

2017 Guidance (1)(2)
Core FFO/Share	$1.85 - $1.95
Same Store Revenue Growth (3)	4 – 5%
Same Store Expense Growth (3)	2 – 3%
Same Store Core NOI Margin (3)	63 – 65%
Same Store Occupancy (3)	95 – 96%
Same Store Turnover (3)	34 – 36%

The Company does not provide forward-looking guidance for certain financial measures on a GAAP basis because it is unable to reasonably predict certain items contained in the GAAP measures, including one-time and infrequent items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, discontinued operations, share-based compensation and other items not reflective of the Company's ongoing operations.

⁽¹⁾ Please refer to the Forward Looking Statement disclosure on page 8. ⁽²⁾ This outlook is based on a number of assumptions, many of which are outside of the Colony Starwood Homes’ control, and all of which are subject to change. This outlook reflects Colony Starwood Homes’ expectations on (a) existing investments and (b) yield on incremental investments inclusive of Colony Starwood Homes’ existing pipeline. All guidance is based on current expectations of future economic conditions and the judgment of the Colony Starwood Homes’ management team. ⁽³⁾ 2017 Full Year Same Store property count is expected to be approximately 28,850 homes, subject to dispositions throughout the year.   35

      Appendix

36

Appendix A: Definitions

Annualized Turnover Rate. Is calculated by dividing a) the number of homes that become unoccupied during a period of time by b) the number of homes that had completed initial renovation/rehabilitation and were leasable during the specified period, expressed as an annualized percentage by multiplying the period of measurement to reach a 12 month period (e.g., multiplying a three month turnover measurement by four). Management believes this operational measure is useful in understanding resident satisfaction, pricing effectiveness and assessing associated property repairs and maintenance expenses.

Average Acquisition Cost per Home. Is calculated by dividing a) the total acquisition cost for each home in an identified population (such acquisition costs including purchase price and closing costs, but excluding renovation/rehabilitation costs incurred prior to leasing) by b) the number of homes in the respective population. Total acquisition cost for assets owned by SWAY prior to the Merger includes the purchase accounting fair market value step-up applied to those assets as of the close of Merger on January 5, 2016.

Average Investment. Is calculated by dividing the sum of a) the total acquisition cost for each home in an identified population b) all property related capitalized expenditures incurred in the renovation/rehabilitation of a property prior to leasing by c) the number of homes in the respective population. Total acquisition cost for assets owned by SWAY prior to the Merger includes the purchase accounting fair market value step-up applied to those assets as of the close of Merger on January 5, 2016.

Average Monthly Rent per Occupied Home. Is calculated by dividing a) the aggregate monthly contractual cash rent (excluding rent concessions and incentives) for an identified population of occupied rental units by b) the number of rental units in the identified population. To date, rent concessions and incentives have been utilized on a limited basis and have not had a significant impact on the CSH portfolio’s average monthly rent.

Blended Rent Growth. Represents the weighted average rent growth on all new leases (replacement leases) and renewals during a measured period, and is calculated by dividing a) the aggregate contractual first month rent on all new leases and lease renewals executed during the applicable period for an identified population of occupied rental units by b) the aggregate contractual last month rent for such identified population of rental units before renewal or new lease. This calculation does not include lease escalations / step-ups for multi-year leases.

Core FFO. Core FFO is a non-GAAP financial measure of operating performance that we believe assists investors in assessing the results of CSH’s single-family rental business, which is our core operating business. Core FFO adjusts NAREIT FFO (defined below) to eliminate the impact of certain items that CSH believes are not indicative of our core operating performance, including the results of the NPL business, which we intend to exit, as well as certain non-cash items. Our Core FFO begins with NAREIT FFO and is adjusted for revenues and expenses directly related to our NPL business, for amortization of deferred financing costs and debt premium discounts, share-based compensation, loss on derivative financial instruments, amortization of derivative financial instruments, non-cash interest expense, merger and transaction-related expenses. Core FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not necessarily indicative of cash available to fund cash needs and should not be considered as an alternative to net income (determined in accordance with GAAP) as a performance measure.

Core Net Operating Income or Core NOI. CSH calculates Core NOI by subtracting Core Property Operating Expenses from Core Rental Revenue, as defined, which eliminates (a) revenues and expenses that CSH believes are not directly related to the operating performance of the homes themselves and (b) GAAP presentations of resident chargeback fees and bad debt expense to provide a clearer presentation of rental and fee income streams as well as associated expenses. Please refer to the definition of NOI below for an explanation of how that measure is calculated separate from Core NOI. Core NOI is a non-GAAP measure of operating performance that CSH believes assists investors in assessing the performance of our portfolio of single-family homes, which is our core operating business. Please see Appendix B for a reconciliation of net income (loss) to Core NOI.

37

Appendix A: Definitions

The Core NOI measures included in this presentation should not be considered alternatives to net loss or net cash flows from operating activities, as determined in accordance with GAAP, as indications of CSH’s performance or as measures of liquidity. Although CSH uses these non-GAAP measures for comparability in assessing their performance against other REITs, not all REITs compute the same non-GAAP measures. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures are comparable with that of other REITs.

Core Property Operating Expenses. Is calculated by adjusting operating costs for the properties in the relevant sample by eliminating the impact of resident chargebacks bad debt expense.

Core Rental Revenue. Is calculated by rental and fee income for the properties in the relevant sample adjusted to eliminate the impact of bad debt expense.

Development Homes.  Homes that a) are awaiting initial rehabilitation, b) are currently undergoing initial rehabilitation, or c) have completed initial rehabilitation but have not yet experienced initial occupancy.

Full Year Same Store. Homes that met the definition of Same Store Homes as of January 1, 2016.  As of December 31, 2016 there were 22,363 homes.

Integration Costs.  Costs and charges incurred during the integration of the Starwood Waypoint Residential Trust and Colony American Homes operations in the three and twelve months ended December 31, 2016 that are not reflective of our core operating performance and that we do not expect to incur subsequent to the completion of the Merger integration, but which do not qualify for Merger and transaction-related expenses under GAAP.  The majority of Integration Costs consist of base salaries, benefits, and payroll taxes of employees separated or scheduled for separation as a result of the Merger. See Appendix B for a summary of Integration Costs through the three and twelve months ended December 31, 2016.

Merger and Transaction-Related Expenses.  Direct costs incurred as a result of the Merger closing or costs required to ensure the Merger was completed successfully.  These costs include legal fees, advisory services (accounting, tax, and entity filings), success fees, employee retention plans and severance costs, and property tax / transfer costs.  See Appendix B for a summary of costs for the three and twelve months ended December 31, 2016.

NAREIT FFO. Funds from operations is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income or loss (in accordance with GAAP) excluding gains or losses from sale of previously depreciated real estate assets, plus depreciation and amortization of real estate assets, impairment of real estate assets, discontinued operations and adjustments for unconsolidated partnerships and joint ventures.  Consistent with real estate industry and investment community preferences, we use NAREIT FFO as a supplemental measure of operating performance for a REIT. We consider NAREIT FFO useful to investors as a complement to GAAP measures because it facilitates an understanding of the operating performance of the Company’s properties. NAREIT FFO does not give effect to real estate depreciation and amortization since these amounts are computed to allocate the cost of a property over its useful life. Since values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, the Company believes that NAREIT FFO provides investors with a clearer view of the Company’s operating performance.

Net Operating Income or NOI.CSH defines NOI as rental and other property revenues less property operating expenses. CSH has presented NOI for Same Store Homes as CSH believes this NOI measure to be an appropriate supplemental measure of operating performance to net income attributable to common shareholders because it reflects the operating performance of our homes without allocation of corporate level overhead or general and administrative costs and reflects the operations of our business. Refer to the table below for a reconciliation of net loss attributable to common shareholders to NOI. Please refer to the definition of Core NOI above for an explanation of how that measure is calculated separate from NOI, and see Appendix B for a reconciliation of net income (loss) to NOI.

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Appendix A: Definitions

These NOI measures included in this presentation should not be considered alternatives to net loss or net cash flows from operating activities, as determined in accordance with GAAP, as indications of CSH’s performance or as measures of liquidity. Although CSH uses these non-GAAP measures for comparability in assessing their performance against other REITs, not all REITs compute the same non-GAAP measures. Accordingly, there can be no assurance that CSH’s basis for computing these non-GAAP measures is comparable with that of other REITs.

Non-Owned, Managed Homes. Colony Starwood Homes currently provides its property and asset management services to third parties and/or joint venture partners as a fee service.  The non-owned properties are all managed within the same platform from which Colony Starwood Homes services its Owned homes.

Occupancy %. Represents the percentage of an identified rental unit population that is occupied as of the measurement period and is calculated by dividing a) the number of occupied units as of the last day of the measurement period by b) the number of rental units in the identified population of rental units (Same Store, Owned Homes, etc.).

Other Homes. Includes 266 Owned Homes as of December 31, 2016 that were not intended to be held for the long-term and not in service.  The 266 Other Homes excludes the 353 REO homes held as of December 31, 2016.

Owned Homes. Represents wholly-owned single-family rental properties, and is measured by the number of total rental units. This takes into account investments in multi-unit properties which Management believes provides a more meaningful measure to investors.  Owned Homes excludes the 353 REO homes held as of December 31, 2016.

Quarterly Same Store. Homes that met the definition of Same Store Homes as of October 1, 2016.  As of December 31, 2016 there were 28,146 homes.

Recurring Capital Expenditures or Recurring Capex. General replacements and expenditures required to preserve and maintain the value and functionality of a home and its systems as a single-family rental.

Renewal Rate. Is calculated by dividing a) the number of renewed residents with current period lease expirations by b) the total lease expirations during the period.

Renewal Rent Growth. Represents the percentage change in monthly contractual rent resulting from all lease renewals that became effective during a measurement period for an identified population of rental units, and is calculated by dividing a) the aggregate contractual first month rent (excluding rent concessions and incentives) on lease renewals executed during the applicable measurement period for an identified population of rental units by b) the aggregate contractual last month rent for such identified population of rental units before renewal. To date, rent concessions and incentives have been used on a limited basis and have not had a significant impact on contractual rent.

REO. Real estate owned, which is associated with the NPL business.

Replacement Rent Growth. Represents the percentage change in monthly contractual rent resulting from new leases on properties previously leased to different residents during a measurement period for an identified population of rental units and is calculated by dividing a) the aggregate contractual first month rent (excluding rent concessions and incentives) on new leases signed during the applicable measurement period for an identified population of occupied rental units by b) the aggregate contractual last month rent for such identified population of rental units under the prior lease on such properties. To date, rent concessions and incentives have been used on a limited basis and have not had a significant impact on contractual rent.

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Appendix A: Definitions

Retention Rate. Is calculated by dividing a) the number of retained residents with current period lease expirations by b) the total lease expirations during the period.

Revenue Enhancing Capital Expenditures. Capital improvements and additions intended to increase the revenue potential for a given property.

Same Store Homes. Homes which have been stabilized for at least fifteen (15) months prior to the start of the current measurement period, excluding any homes that have been disposed of, removed from service or returned to the development period for significant renovation.

Stabilized Homes. Homes that are currently occupied or have been previously leased and occupied that do not meet the criteria to be a Same Store Home. For the three and twelve months ended December 31, 2016 the Stabilized Home count excludes 110 homes not intended to be held for the long term.

Top 10 Markets. Refers to CSH Homes’ ten markets with the greatest number of homes as of December 31, 2016.

Total Homes. Represents all homes Colony Starwood Homes manages.  Includes both Owned Homes and Non-Owned, Managed Homes.  

Total Rent Growth. Represents the weighted average rent growth on replacement rents, renewals, and escalating multi-year leases for the period.

UPB. Unpaid principal balance.

Weighted Average Home Age (years). Rounded number of years between when a home was built and the last day of the current measurement period with each market being weighted by its area asset count.

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Appendix B: Reconciliations

Cost to Maintain a Home:

Quarterly Same Store
Three Months Ended December 31, 2016
in (000)s
Cost of Ownership	Gross Cost		(-) Unrelated to cost to maintain			(-) Chargebacks			Net cost to maintain		Cost per Home
Repairs and maintenance
Repairs and maintenance	$	4,449	$	-		$	18		$	4,467	$	159
Turnover-related costs		5,588		-			(2,594	)		2,994		106
Subtotal Repairs, maintenance, and turn costs (1)	$	10,037	$	-		$	(2,576	)	$	7,461	$	265
Other operating expenses
Landscape and pool services	$	1,080	$	-		$	(522	)	$	558	$	20
Other expenses		3,572		(3,572	)		-			-		-
Subtotal Other operating expenses (1)	$	4,652	$	(3,572	)	$	(522	)	$	558	$	20
Total	$	14,689	$	(3,572	)	$	(3,098	)	$	8,019	$	285
Recurring capital expenditures
Capital replacements	$	7,482	$	-		$	-		$	7,482	$	266
Turnover-related capital costs		3,608		-			-			3,608		128
Total recurring capital expenditures	$	11,090	$	-		$	-		$	11,090	$	394
Total cost to maintain a home											$	679
Total revenue enhancing capital expenditures									$	634	$	23
Same Store Homes												28,146
(1) Ties to Same Store category total on page 24 of supplemental

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Appendix B: Reconciliations

Integration Costs:

( in 000s)	Three Months ended		Twelve Months Ended
Category	December 31, 2016		December 31, 2016
Employee related costs	$	-	$	5,255
Accounting		-		775
Office rent		-		564
IT		294		1,242
Other		-		135
Total	$	294	$	7,971

Merger and Transaction-Related Expenses:

in (000)s	Three Months ended			Twelve Months Ended
Category	December 31, 2016			December 31, 2016
Closing and Success Fees	$	63		$	14,205
Legal		181			11,164
Employee Related Costs		(957	)		1,261
Other		151			2,866
Total	$	(562	)	$	29,496

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Appendix B: Reconciliations

Net Operating Income or NOI:  

	Three months ended December 31, 2016						Twelve months ended December 31, 2016
(Dollars in thousands)	Same Store Homes			Stabilized Homes (2)			Same Store Homes			Stabilized Homes (2)
Reconciliation of net loss to NOI
Net loss attributable to Starwood Waypoint Residential Trust shareholders	$	(10,493	)	$	(10,493	)	$	(81,267	)	$	(81,267	)
Add (deduct) adjustments to get to total NOI
Gain (Loss) from discontinued operations (NPL/REO)		10,419			10,419			17,787			17,787
General and administrative		11,932			11,932			54,332			54,332
Share-based compensation		931			931			2,853			2,853
Interest expense		37,430			37,430			152,167			152,167
Depreciation and amortization		42,945			42,945			178,763			178,763
Transaction-related expense		(562	)		(562	)		29,496			29,496
Impairment of real estate		220			220			750			750
Realized (gain) loss on sales of investments in real estate, net		(1,309	)		(1,309	)		(4,673	)		(4,673	)
Equity in income from unconsolidated joint ventures		(199	)		(199	)		(738	)		(738	)
Other (expense) income, net		1,016			1,016			2,395			2,395
Income tax expense		249			249			736			736
Net income attributable to non-controlling interests		(689	)		(689	)		(5,218	)		(5,218	)
Total NOI	$	91,890		$	91,890		$	347,383		$	347,383
Add (deduct) adjustments to get to total portfolio NOI
Property management integration costs (1)		-			-			2,108			2,108
Non-portfolio NOI components:
Property operating revenues on non-portfolio homes (1)		(14,979	)		(3,078	)		(172,997	)		(18,468	)
Property operating expenses on non-portfolio homes (1)		7,200			2,734			70,925			12,957
Total Non-portfolio NOI	$	(7,779	)	$	(344	)	$	(102,072	)	$	(5,511	)
Total NOI	$	84,111		$	91,546		$	247,419		$	343,980
Calculation portfolio Core NOI margin:
Rental income	$	125,937		$	137,314		$	384,167		$	532,287
Fee income		3,339			3,673			9,982			13,804
Less bad debt expense		(2,240	)		(2,307	)		(6,508	)		(8,469	)
Total rental revenues	$	127,036		$	138,680		$	387,641		$	537,622
Core NOI margin		66.2%			66.0%			63.8%			64.0%
(1) See Income Statement Bridge pages 13 and 14
(2) Stabilized is the summation of Same Store Homes plus Stabilized Homes as defined in Appendix A.

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Appendix B: Reconciliations

Other Assets:

in (000)s
Description	December 31, 2016
Hedge contract	$	25,772
Prepaids		14,229
Accounts receivable, net of allowance		10,071
Deferred leasing costs and lease intangibles, net		4,437
Furniture, fixture, and equipment		3,366
Deferred finance costs, net		2,490
Deposits		1,697
Other		4,523
Total	$	66,585

Other Markets:

Three months ended December 31, 2016
Market:	Same-Store Homes	Stabilized Homes	Development Homes	Net Owned Homes (1)	Owned Homes Occupied % (1)	Other Homes	Non-Owned, Managed Homes	Total Homes
Chicago	632	136	-	768	94.7%	4	395	1,167
Other (2)	268	192	71	531	82.1%	14	7	552
Total	900	328	71	1,299	89.5%	18	402	1,719
Twelve months ended December 31, 2016
Market:	Same-Store Homes	Stabilized Homes	Development Homes	Net Owned Homes (1)	Owned Homes Occupied % (1)	Other Homes	Non-Owned, Managed Homes	Total Homes
Chicago	395	373	-	768	94.7%	4	395	1,167
Other (2)	184	276	71	531	82.1%	14	7	552
Total	579	649	71	1,299	89.5%	18	402	1,719
(1) Excludes REO properties.
(2) Other Market includes Nashville, Tucson and Delaware.

Weighted-Average Shares:

	Three Months Ended	Twelve Months Ended
Description	December 31, 2016	December 31, 2016
Weighted-average shares - basic	101,492,960	101,633,326
Incremental shares from RSUs	139,484	232,252
OP units	6,400,000	6,400,000
Total	108,032,444	108,265,578

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