INVH - Earnings call transcript Q3 2017

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Operator

Greetings, and welcome to the Invitation Homes Third Quarter 2017 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Greg Van Winkle, Director of Investor Relations. Please go ahead.

Greg Van Winkle

Thank you, Jasmine. you conference us call. thank quarter our and earnings XXXX morning, for for joining third Good Officer; Investment On John Operations Officer; Financial Bartling, call Officer. Chief Tanner, today's from Executive Ernie Invitation Freedman, Lavine, and Bruce Officer; Homes are Dallas Chief Chief Chief and today's I'd release call. everyone earnings point we which to our third information, like XXXX may quarter to press supplemental reference on found our can be on website www.invh.com. document Relations of the This section at Investor

the We results, during with may SEC you performance statements. other that to capital any subject XX-K, on report certain some statements that update XX, XXXX materially obligation filings and are Finally, describe XXXX to does expressly include resources Homes risk those so. and to which filed October to forward-looking of I'd like relating uncertainties to Form our results in made forward-looking not differ statements from and could to inform disclaims on the such and other of statements our any from liquidity and call make the actual in future cause or time uncertainties time. annual risks Invitation indicated statements, business, non-historical financial our do proxy and merger these we outcomes

certain During discuss call, this we may non-GAAP measures. financial also

Bartling. information, to most John Executive find our the call available You are of the in and now regarding our GAAP turn comparable reconciliations Relations and which President Chief with these Investor additional measures measures supplemental information earnings of I'll can non-GAAP measures, over on Officer, these including website. section our the release

John Bartling

you, Greg, and Thank morning, good everyone.

time, merger to financial XX.X% up that and the has NOI again. been the quarter another quarter for we with report up I'm AFFO X.X% Waypoint transformational strong great a quality XXXX with on renewal a anticipated turnover Homes, remained even expectations, rates year service Starwood performance up with Invitation testament near locations, and year-over-year. lower, what with line we of our the and financial Rent product, of people. third moved active in very closing Homes. X% same is same-store our results growth had progressing strong of operating top and of At to our As happy

In of of addition, during find we platform, to and X% in the reduction XX% success in efficiency other continue growth the our elevating third a costs controllable quarter. achieving income

Looking is average. in Hurricane this three national NOI the growth financial of X.X%. we to we the first of note in almost QX. rent blended Against ahead, was on believe growth fundamentals U.S., growth, are same-store quarter strong X.X% This backdrop, we in Home with Irma. XXXX, this the in our up way we for along full strong market as Also macro demand saw points appreciation especially evidenced we supply XX strong X% Homes X.X% of favorable the Invitation and basis price than in with remain achieved the to results rent markets. fundamental our of year-over-year, better track Western responded quarters to by where prices well remains deliver same-store year

a or million through We Atlanta estimates, recoverable no in initial expense, we of residents our are assist line particularly how moved associates with wake of accrued quickly should the which portion be to appreciative small storm. to our Florida casualty the injuries of of our loss residents have insurance. In and $XX were Thankfully, reported. associates

the the year for close words few transaction merger. on November our proposed Waypoint the to of XX. remain a with Starwood track scheduled end before shareholder's on Finally, We vote

$X and enhanced billion the innovative XX% preeminent States. will in will to that of revenues as Western the in the synergies from Homes from demand together create U.S. single-family shareholders. renovations, and come two bringing and regions in housing growing the with both platforms for residents a these rental As generated inherent With in our as and the Invitation well well services be high-growth scale. mentioned in is August, REIT resident This we almost win-win single-family positioned believe portfolios United benefit Florida for additional

that, that As closer the are Chief to Financial get it call together. is worth Officer, turn to over manage to work closing date, running to we I'll the efficiently together teams diligently well The we Boards the processes homes. post-close as are and integration XX,XXX smoothly noting bring both working Ernie our With now companies Freedman.

Ernie Freedman

quarter for XXXX Thank guidance. topics: the third sheet operating for third you, quarter, activity activity and will third financial results the Today, quarter, updated markets portfolio balance for and the the following John. and October, capital cover I results

third home count. quarter experienced good and NOI Total grew another for portfolio year-over-year, operationally. XXXX in a quarter us X.X% this despite The was NOI of slight growth we decrease

XXXX. quarter first year-over-year. were portfolio XX.X% rental considering the X.X% great at of growth. at quarter Personnel leasing third leases, controllable period growth half and Northern homes, and On Schedule same-store annualized effective in rate the accelerated growth achieved were rental we result, higher year-over-year Same-store firm declined At turnover averaging strongest quarter new seasonally, lower, effective points average and driven Phoenix XX,XXX seasonally that consistent is XX.X%. rental Blended the turnover the at Southern Average noted Renewal XX.X%. our our in X.X% lower quarter. of XX.X%, X.X% business. third X.X% October Supplemental In in and for high, turnover other remained more X.X%, Same-store remained basis of XXX time, grew same and rate a X.X%. net XX.X%, growth the XX.X% costs between year, declined For X(b), expenses expenses, X.X% our especially costs rent ending X%. at the as on lower a occupancy growth turnover bps income NOI higher was the X.X%. of were marketing was blended net X%. Same-store rent annualized X.X%. October costs and growth were California, portion growth third to regions expected, was of declined with Seattle growing of XX.X%. October, even to X.X% declined as in XX rate than occupancy and the month blended growth by same-store with revenues X.X%

asks Newer we've X% the the on and average over December on In at homes out number XXXX, approximately for our increased now of portfolio signed to to on and went by of I'll XX,XXX move X% realized portfolio total homes. November far. activity. XXX those third in quarter thus our

quality selling $XX for XXX recycle higher We million continue and homes, estimated million. to $XX buying homes homes capital an into for XXX

well for to detail expense drove decline AFFO XX.X% Supplemental core interest $XX to costs FFO was $XXX,XXX. net $X.XX recurring spend, results. increase reconciliation a average make AFFO, also through FFO cash our a Our disposition higher items. quarter million in $X.XX to $XXX,XXX, an nonrecurring the due GAAP increased in reported average financial XX.X% share. primarily renovation year-over-year our from core increase. increase per third share XXXX CapEx acquisition FFO of and basis, provides price including was purchase than FFO increase per FFO, the Lower now or or to as contributed adjustment Schedule core closing including in a walk NOI. we I'll The estimated in in quarter. on each loss in third $XX.X year-over-year X as The increase Core to price, our and million year-over-year

these are two your nonrecurring This like attention. quarter, in particular call there to items out would of I to

of Waypoint one-time recording costs. The and transaction-related In third any $X.X on costs severance expense, is Homes the million This totaled exception line we merger and first recorded general new administrative our will and and and be financial continue reported going to on Starwood statements reconciliation, transaction-related the core $X.X FFO appearing line million. will separately expense which the a merger to forward was quarter, of on costs severance line. merger in GAAP is the proposed be This on expense. of this our integration with related

industry's assets of company's And to end the intend continuing to maturities million, basis third we core of of and recoveries of casualty second an our rate. Included quarter transaction FFO average component before to $XX.X to does which Capital or impacted our path XXXX. impairment GAAP on statements. quarter deductibles. IH $XX We comply transaction expense a $X.X of incur Estimated be associated losses purposes. XXXX-X expected as our in to points. use corporate were requirements. a due on $XXX our account in in reserves related accrual necessary general is associated retention receive are damages on and was will repay This to subsequent best first financial reconciliation out principal funds in net for net plus forma The retain IH of that is third to our November. exceed core to XX% result differ securitization X-year our accrual with wide Hurricane able income The on fund sheet the the total not fixed is making of assets our the to open, This markets the achieved with XXXX-X be LIBOR expected quarter Irma. by on from FFO in other extent take were resulting To our impacted will sheet where we from of loss, million we now million statement. related recoveries repair to liability directly net FFO damages committed unencumbered. sheet. remain is other core and XX% pool, also was to appear towards to to XXX loan our and proceeds fixed Hurricane update damage at damages, into savings remain casualty weighted our a of Pro damage amount swapped markets is repayments We receive I'll is backed debt Loan-to-value the of may interest not XX%, loan enough any damages risk insurance and given estimate securitization most we these that and be differences the cost to of potential pricing will against that did annual maturity history. recoveries. close balance debt investment-grade March X% recorded GAAP approximately and homes line would unencumbered minimal insurance balance expect Irma no on million by of $XXX line of activity. record of proceeds years an casualty the of end the and we debt the the clear, to total and the at insurance to advantage or million pricing NOI capital which impairment differences balance X.X certain we for ultimately a The over our loss and on take to our to These expenses the turn that the we be actual not is reconciliation. return and Irma

with We also The $X for guidance have does was revolver, from a will not the contemplate not all Invitation I provided Starwood at $XXX today's year Because quarter end, closed, million for is merger yet stand-alone billion Homes and has last of as full any XXXX. is thing impact guidance merger. unrestricted cover Waypoint and our cash. call undrawn which the a Homes on company

strong As was same-store and first of in growth continue quarters three our tailwinds XXXX fundamental back line NOI have John our with the discussed, to in we expectation. at

growth and X.X% XXXX full X.X% is decrease X.X% Irma's to guidance X.X% As attributable The are for same-store revenue range the XX such, majority growth our NOI of of Florida. same-store X.X% in guidance year to to basis revenue growth. to Hurricane by expense activity of same-store to to leasing the growth point X.X%, interruption midpoint we same-store our driven tightening

a decline cost our core year better by the lower on to to as well to $X.XX expenses One XXXX before be housekeeping Q&A. controls John is the and over expectation and more AFFO as call turn share. same-store result expenses as lower to announcement controllable expected be insurance is revenue to addition, FFO $X.XX same-store In offset quick Full expected premiums. of $X.XX to then per share I $X.XX is expected per in back

stand-alone need We Invitation focused keep this results to will a Homes' call on as outlook earning company. and

to We refer and the to further for will SEC to to able proxy Homes that information you with the merger related be Homes' with matter. Waypoint merger related provide not we'd filed Starwood Invitation proposed

over Now turn John? call I'll the to John.

John Bartling

Thanks, Ernie.

hundreds option over to and home to of call and our Homes to thousands to like neighborhood our to to the say moment companies, compelling would of take work property want their our enhanced a to their And our for experience worry-free to lease in stakeholders. Before close we're you who turning Q&A, to quick thank all to operations, colleagues, by management a Together continually live of to witnessed a I of provide of Starwood a providing families tailoring with great Waypoint these the they as merger we're school. go residents. with two choice, living where residents, services

team associates As through. note we say, Homes building a with of with partners. Homes; the day $X company residential years. continue leasing natural our alone, of built hurricane lifestyle lift the this executed the a these peer, great successfully amazing our financing multiple in a and and a to for to business our our for executed from negotiated of part residents. last of invest Fannie the billion. a securitization that what Directors, Waypoint first supporting IPO; meaningfully of market has the on blast Invitation while, was markets power Starwood In shines had in eighth it In or Board transactions we been neighborhoods to executing really is realtors our our vendor on our to unprecedented week, transformational Mae; by we to plan three shined. helping successfully trades markets and Suffice All It homes, model business local an sustained all to great through with day past even almost platform disasters, of high-quality the over to sponsor, it provide industry's be like XXXX merger this important one, are and strong power the support dynamic housing roofers.

couldn't range deep from growth. prospects scale a in compelling of option up again, associates questions? that, encouraged of for showed all line whom offerings. to advantage product With more investing I a the the operator, required. NOI of best growth Homes needs Invitation you people, team once Waypoint with customer that services we what have locations, open the future the superior wide As Starwood our This with would shareholders' best-in-class Homes same-store performance X.X% and new the has and please the of for of be competitive understanding are and

Operator

Instructions] comes first question David [Operator The Riley]. [B. from Corak

David Corak

just even half that? on give any expense to some what's rate year. low lower than growth the Property came initial expectations the of Can on first this for I driving quarter, maybe And side. a forward? want decent taxes just start terms on the of in relatively then you run color that in going

Ernie Freedman

through do rates. the well in at don't at sense expect to want come will in had here through as myself. early We'll home expected great get up Ernie. on down near-term, grow markets taxes expected. We Property so jurisdictions December. We're greater home long, that us based forward, to the Hard from and better Sure, average. are came our David, which inflation have appreciation. continue X.X%, the about what prices importantly, But in ahead during here prices trickle around That for to there. on weeks is national project the a least because much into that than lot growing where home basis I about where to seeing that track going the greater November not average course, really pretty the David. will outsize price but we for is the a points of of assessments, XXX things than on will bills inflation about coming our expectations occurred into transactions that This of taxes And we baked year. from going happen we tax

David Corak

be you through and the share occupancy That's helpful. And rates of of today? to able kind spot us with as would of or end October Okay. then

Ernie Freedman

Yes.

So mentioned for our the XX.X%. the of was the script, in October at we month occupancy call October, occupancy, end average spot

us And very for ahead September. that does So that. up occupancy we where as puts we we month, last David, similar the And October saw ended were and where year, well. to of throughput build typically

David Corak

quick then maybe. And last one for Okay. one Dallas

you dollar And net the amount. what of homes sense buying out give of You and kind you're this in as to and of us channels in number deal flow on maybe an just Can terms acquirers guys and seeing portfolios that there? just update were you're of out both quarter, any a there?

Dallas Tanner

to through continues different of We're a everything relatively have market because in still able tight. kind our The be local channels. – Yes. we markets, and comes high-touch we're influence of see that we're variety a to

aware opportunities of, be that continues the markets that working I not to the are say channels. But in barrier-to-entry, rent our are particular growth. with we're Zillow of outside transacting and to identify well groups, As where may would be economic greatest to you're through some Opendoor such that going see we higher focus normal as

a Seattle. being like the markets be so West call, having local that to to bullish with And continue local concentration we find and was to on, So we to and opportunities. pointed market continue in Coast as relationships try ability an – helps sellers. we'll bias It love our maintain out

Operator

comes Neil question Malkin the line Capital. next RBC of of from The

Neil Malkin

I out, to California California in operate in it relocation? Appreciate particularly the you seems sense on, too for, asked things West strength this moving job harder is incident of an if in have business. increasing and And more a there's make place people for be the a maybe in put guess, read being to like reason there's that do may get just any I or but larger a soon guys the it And Coast. more

you're just to I something not Or starting that. Phoenix, people really like like wonder that if Denver, relocate maybe So happening? is

Bruce Lavine

not to we're of numbers people slowdown seeing seen we've who not No, a Bruce. as a are that California. or not move. higher relocating Neil, reason happen We've this seen is in

Neil Malkin

the would one you we would just will where attributable saw that for basically other Irma, Is be weakness most? to probably in me new then that And leasing, that got – terms you say? of the the in to XQ hit be Okay.

Ernie Freedman

to you parts coming And I say, Coast. as that. XQ, get September, two season. West into just especially you overall, of as leasing strength saw very the So would out peak that's we're in we get into

that because that We let would Irma. be about those than hurricane. have numbers Bruce from that do weaker would the certainly impact from some we anticipated said, With certainly, And was they have markets where we disruption anticipated it. talk were. So still our it of the I'll

Bruce Lavine

Yes.

add in Irma year, did tell I that, on and from we perspective. you our in see to lease that to rate last was it foot probably growth recall new inventory. though, little Neil, our to were disruption think, the late taking I'll with gas off of you, to detriment a we regard

the very were conscious of correct any respond rate. and so occupancy And to And to had, factor, to had opportunities our imbalances play as here and seasonality, lease we that we regard we third that very, to well. – be continues with any wanting

an So three influence. those combined did have

Neil Malkin

rebuilt? just you lack – the a the could potentially if looking either, other expect seek by given Would maybe while And Florida residence into impacted ability not that homes maybe move getting back who B, that. in their bounce of follow A, to are quarter from just fourth on in you residents guys I up home? to areas And then a are displaced weren't

Bruce Lavine

us substantial as And were has heard residents. in not the not as factored homes factor longer. other was So for did to that not Neil, that not in any you there degree were seeing damage reports, yet. – we're That the not habitable numerous displaced

half numbers month leasing made the seeing markets. and quite demand loss the our And pent-up September in strong. basically are in are We We of of up absorption Florida October.

be will I'm rate to new continues So see lease growth the leasing there opportunities increase. as optimistic that

Operator

of from The the Rahmani KBW. Jade next question comes of line

Jade Rahmani

targeting are where acquisitions, economic CapEx? rate basis after of terms cap on In an you

Dallas Tanner

a still on to obviously, see of rate laid California or basis, Atlanta. still cap a of the in our have in We're we opportunity kind an maybe bit merger of like mid feel, basis, what depending mix. relative some X.X% on little the between And you market we blended seeing be Southern cap a Xs. see in like neighborhoods you'd to out we're call, post-CapEx still – much at basis seeing markets of still NOI buying a difference around better the can Northern California you we be on But what call might it, blended

Jade Rahmani

CapEx? after that's So

Dallas Tanner

Correct.

Jade Rahmani

like in interesting range markets there's there of that previously? been the where that Xs opportunity you Are an Okay. outside in haven't

Dallas Tanner

been Well, fit pretty want I our think as consistent we you barrier-to-entry markets. about in portfolio, and we've think building those we've been high it, how with to to

to revenue areas, a Bruce on put I and some that out statistics the of see you better board. think with point high-demand his in it's the to important an thing When have opportunity team you're operating those have growth.

we'll percentage jobs other and MSAs, to offer And be the those frankly, a And we're portfolio where West to try where in we opportunity, schools and, tend to is for a be do where quite But quality invested. so and those these live. currently of large to areas are Florida at continue where but our markets, where want look we Coast be today. areas in people of to high-demand the choice want within those

Jade Rahmani

builders comment I push to product. been a home on could buy-in, as leasing grow how we're from that's the move-outs you entry-level if their Just on percentage was wondering to seeing trading trends.

Ernie Freedman

This we've seen quarter, us was consistent Sure. the over been It's house to past last or move-out the XX% XX% it move-out buy depending reason on Jade, five a had XX%. the very – four between quarter. range the quarters. and for for

So we're to meaningful our patterns recent any seeing not there in relative change history.

Operator

comes of from Street. John Pawlowski of the line Green The question next

John Pawlowski

decelerating from you a Florida, are factors not X.X% I year what than just did you tough you'd a Blended versus and comp guess, power I rent to color year achieve characterize you could weakness X.X% some X.X%. maybe like pricing how give on a to little a was other today causing level ago. specific ago? growth market hoping in

Ernie Freedman

I'll and to turn John. it start So that let me over with Bruce,

the the at management period as well numbers its at looking was a push company period. XXXX, of pushing comparing that in at And think, at XXXX point. in to only ideas, of really that getting few maturation better around first being a company occupancy different those have for to foremost, stage for been out and stabilized the as we're a years and time revenue point, and that really able process getting catching up that you're a is I

You think year this it's you're more seeing you're similar dynamic. renting a is But as after going company mature market profile. the a seeing

years. us, so market. similar And for the prior from similar some characteristics, catch-up had We

So certainly, difficult more comps.

course, that disaster add? third challenges Of there. some quarter, impacted the you by anything natural want were in did have and Bruce, markets you importantly three or four a to

Bruce Lavine

area I euphoria the tad this markets, about think on turning fact we slight point almost sequential as suffered too the to occupancy like a comment the earlier that we Coast were of well. some In my year that West differences aggressive in slightly because bliss. the feel applies

looking not to Xs, of those strong. but at very, XX You're and you're demand be continues very markets still strong all

John Bartling

on road Bartling, the against in done on is management John, the worked said forward. think very each and demand one get things I it management important is the went say place. was And And out going well our to to put has lease expiration side, of would and I we this revenue other what supply we've that

as for we next at well as think we're to portfolio you pricing our year, demand. expirations So I even against the positioned continue manage power, look

John Pawlowski

restrained. through strain or much helpful. most within you markets the increases rent appreciate on are portfolio affordability activity? what being out moving to I move-out that And buy I Very what on seeing – to the guess, buy Okay. either average, comments broad manifesting very move out itself to

Bruce Lavine

is This Bruce.

in a to months, be number has seeing we're continues would So now the stronger be a home Surprisingly, few bit purchases. Jacksonville seen of higher that a one have home last markets – Minnesota purchases, Tampa. purchase the does spike. right of

Operator

the of Raymond question Buck The James. comes next Horne of from line

Buck Horne

run on I if the could. The core was question G&A rate,

that run – near something stripping the seems there management? also cost your G&A the outlook number, one-time the up comp Is Just bit higher. be property merger and basis trending term kind stock a for and on what's out even of and to kind it severance in the a pushing little that of rate and

Ernie Freedman

the quarter And Sure. from you in that perspective. us to first recognizing it's – third than in to accelerate, third a million $X.X a higher number our we fourth in Ernie. did quarter type in two million had we the $XX.X over the we will issues separate up retention in reverse out that would One timing In one-time to the you ran during saw noise timing from was the little quarter. things. in hurricane, Buck, where actually little out had some the in quarter fourth third for the third that quarter. quarter, a quarters. will It to are G&A $XX two of so million. about reverse recognize from particular thing quite third the self-insurance you point We the pierce was first actually right were bit That million start some which a jumped a to out $XX when layer the factor quarters, the quarter, in to

the million, out take back $XX-ish of rate get run million you kind $XX.X to us million, of for you per $X.X if that So that quarter.

management we and So that's property happened with of And continues there. throughout timing the to would with what issues minor really kind track some G&A. year expect to as it then

quarter you of a in one-time So drop-off timing because fourth issue. that the see should

Buck Horne

taking delivery pipeline All acquisition – you you anything built-for-rent now? you a or yet? got question, in right. acquisitions Are quick any That's and any of perfect. homes delivered did the the of And

Ernie Freedman

Dallas let about I'll talk that.

Dallas Tanner

Today, as have today, done any No. not of Thanks. our we built-to-rent product portfolio. in

Buck Horne

yet? plans as Okay. to And no of

Dallas Tanner

and open-minded. we stay looked we've mean, I necessarily. Not around

of I opportunities. in on a the in And some those really we themselves. think of opportunities currently, ton present see it's we focused are those don't where markets built-to-rent

Operator

of The Harter Crédit next comes Doug Suisse. from the question of line

Doug Harter

kind and today financing about there's whether Ernie, financing? the on – could being I update to any terms ability are markets, talk bit GSE little of was hoping a where more you do the

Ernie Freedman

markets And the are wide Sure. open.

transaction. of trading September had to transaction close And close We'll very successful were we be peer able we're favorable. month. market And slightly our company from successful Trading actually, tighter and have a where seeing have to soon. secondary been spreads our continue more one very securitization will securitization in this priced. the saw You sometime a on we

So perspective. with capital security, deal be We certainly like us borrowers a seen. product, markets, GSE a helps a down got to Fannie which great the The there's from markets folks of avenue us. another Freddie two earlier this of That's some can't but year. that's understand for for We things either as consideration open to dearth those that well, giving speak are groups.

talked a Doug, investment us, have to to an sheet. wanting to for commitment grade we've we move about and Importantly balance

And next – avenues even as the so reach which lot very XX%; through well. larger up the of unencumbered today banks a is seen as out to about the number at talk ideas which make pool, maturity, weighted agencies, our help open deals average we've period – of in us that that that had that us secured would us the to and some transition to to today at over to increase new time create to is an with to and had X.X a success market securitizations the of we've we've

that capital moving maybe borrowers good, of us, take able markets in just not a capital plans. our we to and a to very are the the of markets, healthy we'll it think lot industry access continue advantage fortunate, we're position with So and about forward as

Doug Harter

Just on the point. last

can short unsecured, extra term? accomplish you to a more to it with do is that to securitization? there move near-term Or the cost cost relative you in As minimal

Ernie Freedman

couple have things, Well, factor of Doug. a you in to really

of you importantly, financing to look have So the but the type at term.

today, so that's I've shorter-term seen, securitization financing, hedged. we And have

that So at we've hedged for cost our level. XX% an

we conclusions final that what be to made and may haven't we roll on how so do out. term may looking we And

So as we we'll – cost start making that, with to carefully something that way provide in answer forward, that's how – could a there the transition move around it a study but associated the but is smart provide our do stack. to very certainty we'll organization, also how determine then to flexibility we those and we capital

Operator

line from Ryan BTIG. comes question of next The of the Gilbert

Ryan Gilbert

initiatives Was the specific wondering the add that expense you're drive any undertaking on could line color down. you controllable to if

Ernie Freedman

at of couple that. a take I'll Sure. passes

expenses fixed our between expense and controllable the controllable. on break So we line,

done turnover having best we with to that have the of on terms the best of and in on struggling deploy you control, scope year, how their have the procure, resources. you weakest across a board of we the When how a on roll side around how maintenance focused And from We've lot XX and a bit. those in they're and have personnel terms So the and and learn being been very doing out consistent country. improve we've a smarter try throughout you cost. that are region we little across repairs region regions, work

centers the folks that. terms Importantly, by much working centralizing great call of on well our but again, calling leasing deploying. been we're a customer side importantly service at success how finding about things work that customer marketing, around we're with those smart as we've in and better on being can And But providing us different experience, more also we led with that Chief more and Officer who we're that some by there It's in. being efficient had more are providing and and to with better do activities, being some who efficient, Revenue by looking different our there.

So there to move continue as we have we forward. opportunities

Bruce Lavine

their also addressing regard don't homes, issues pay all serve our early. can deter Program the get our I Ernie, dividends. the work with us to the into add if to homes anomalous to request The raise turn that helping us the fact We ProCare could that continues get helping by initially. residents orders maintenance costs. And just that is it's better performance, to we into

Ryan Gilbert

Great. look XXXX, to that drive expenses in control continue down to those quarter then as continue most into the line items lines? the opportunity expenses are Okay. on And or what showing to fourth you

Ernie Freedman

too want I getting ahead careful be to Yes. about far on XXXX.

more So would all as say for this an us a now I And organization, get at. been we've to for five doing years. are smarter than continue available to little

we on have get share some It'll together an earnings think details call. than next I others. appropriate on So more time probably opportunities that me for to the

Operator

of The Zelman McGill next question of comes from & line the Dennis Associates.

Dennis McGill

on turn went look looking maintain the to the cost when the we up because per just look at cost turnover maintain, down. cost the the to but at actually year-over-year, overall if this – down we went When at was carrying cost side, right, I'm

the the cost. out year-over-year you wanted see on to how hurricane describe a And that not, basis. if Just increase sort backs of if would

Ernie Freedman

Sure. Yes.

does it the costs. back hurricane So out

our or with turnover are So included the numbers maintenance the costs in are numbers. our associated hurricane not repairs and

of couple a So things.

Dennis, the quarter. smart percentage You of continues pointed how very a trends slightly year-over-year. down looking out correctly up spend. and Hard come be they're turnover careful has team very down from points come maintain first that our about to And that, well. is to where total cost specific But from to draw turnovers to you've a slightly lot and as few seen

items are hard for something long know that I some in roll calls if today choosing more but try flooring. we houses to been instance, some we've We continue the we That's discussion about for putting turnover surfaces, out to been to do long-dated initially. time, the other in on there's put the doing didn't a in for turns. on

our And we are with to the CapEx investing little bit And relative piece. of a future with comfortable is turnover happening up year-over-year our Part being significantly what's for smarter. numbers so and the expense seen and that numbers, investing. are more you've

as future costs. long So costs as that turnover R&M think bring term, will down we well

of of how trying and So a little – before a little bit bit of it's smarter kind each turns. be where our doing it's to investment, about been we're

Dennis McGill

Okay.

this you versus a were last talking where lease year? Could October lease than to us new last balance maybe On year. in stats on side, differently occupancy having this year the give new about bit you year growth rent little was Bruce, any

Bruce Lavine

Sure.

came in October in X.X%. growth at rent lease New

Dennis McGill

October? that was what last And

Bruce Lavine

we was me October's, can I It second. Bear do that one twos with the but last get high for have for last year. not you.

Dennis McGill

that's would there? what changing the to then have and on be thinking last an gap market in margin that to structure Dallas, a you do And Okay. own you underperforming opportunity close Or start be is Would of organically? portfolio the question that about Chicago. just both and growth? from there

Dallas Tanner

have his Bruce done side team from ways find increase Well, a continue and to occupancy efficiencies of a They terrific to there job management things. the our standpoint. on

cull largely of and earlier and recycle consistently portfolio in laid year. We that out perspective, from capital. at for rank terms look, this asset October strategy year, of that look to our an throughout, In it, going line this call to our we're management IPO and held ways we've with –

We will selling. look strengths. some markets to and find where ways to also make add into that we're our include mean additional culling could It will portfolio we better. That certain seeing properties could some

at be would keep our all that to I say to normal options better portfolio and would think we So shareholder making look overall it enhance return.

John Bartling

largest one purposeful this I point Dennis, want thing our John. October, expirations October. And to do our months. lease where off – on One it's is to very were lease growth. new rent expiration of out. get we In of

I wouldn't year. like it. We into next this read move of too month So for leases something much XXX off

So to it's make month an – looked year. that of for we streamline as at that opportunity next and October a better sort

Dennis McGill

you sorry, October so And versa? or this than had more October expiring last vice

John Bartling

had year more. this Still year. expiring had we last more than We this year,

sorry. I'm won't. we year, Next

Operator

for conference now I like question-and-answer to John concludes the closing turn back This any session. remarks. would to our Bartling over

John Bartling

looks of And for heartfelt more and personal operator. trust I team I call. be all had seeing us thank the you forward grateful you relationships at experiences many sign Operator, appreciate We the and to the NAREIT formed on today. along week. you've I've you, you next our you, as again, I'll way. one the your Homes, thank note, forever a off. to I've joining for interest, this Thank Invitation the extended as and from of me CEO us Thank concludes for

Operator

conference has now concluded. The

disconnect. now may You

Invitation Homes (INVH) 10 Nov 172017 Q3 Earnings call transcript