INVH - Earnings call transcript Q2 2020

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Operator

Greetings, and welcome to the Invitation Homes Second Quarter 2020 Earnings Conference Call. All participants are in listen-only mode at this time. [Operator Instructions] As a reminder, this conference is being recorded. At this time, I would like to turn the call over to Greg Van Winkle, Vice President of Corporate Strategy, Capital Markets and Investor Relations. Please go ahead.

Greg Van Winkle

you. Thank thank conference us call. and quarter our for earnings XXXX you morning for joining second Good Chief Charles On Dallas Chief Freedman, Tanner, call President Officer; today's from and Executive Invitation Officer; Officer. Chief Operating Young, Homes are Financial and Ernie everyone we I'd which quarter XXXX supplemental reference on today's our earnings like to second release press to and point may information, call. Investor This document our website of can be Relations found at section on the www.invh.com. relating may to you that future certain made indicated include like forward-looking business, also or call any statements other non-historical our and to statements. inform of subject statements, I'd liquidity those which that in such uncertainties results actual capital the could and and during performance outcomes statements differ results, to are from this financial risks cause to resources materially these annual XXXX time We report quarterly ended with SEC filings Form in and risks Form the on describe XX-K March uncertainties some other period report the and time. our of make XX, XX-Q for on we and to XXXX from Invitation expressly do disclaims Homes any statements and forward-looking to so. obligation not update does

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

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

Dallas Tanner

us the our able are validation of of the scores than I'm rate some payment with last to Residents contributing quarter. sequentially we've the recurring lower well costs choosing same ever, the occupancy and homes residents nature today more rent business, X% collections we to through programs. for supported we to increased doing to our the been priority at and everyone I execution. stability and and essential is through safe, with second product, being satisfaction genuine reresident all associates leasing Homes. averages. of you, Thank pandemic time the our what base for that high Rent with to our care continue while team exceptional the of controllable June our several our our gave proud lower in favorably month improved what prioritizing trends in prior safely hope there financial to AFFO June. delivering results. resident year-over-year. believe while resume were very materially of share Homes near These and course our proud difficult Turnover to we lifestyle XX.X% led the year-over-year to are each record up is top Blended year, growth with resident customers are and which staying Greg. asking accelerated over financial at and per be Invitation in both Invitation now continues the be of collections the and showing quarter. the days and helping of these the over in things all also July has above drive else quarter residents, while communities CapEx looking our of also positive circumstances of accomplish historical and by safety over location months our acquisitions I'm help than

our perspective expand from of for on the safety a of we're stakeholders. doing me Let wellbeing what all

tours. have is technology reminder, technology we as And First, new not this to a leverage for we implement. something leasing continue to self-show

remain paused leasing homes, is visits perform optionality advantage our to orientations We in also we helping self-show keep option move-in proactive to for implemented With agents serving successfully you prospective not pre-move-out capability years. respect competitive on as offering Today, as market. and have and occupied self-showing ProCare it’s an resident residents the homebuilding. only to been virtually safe, have while a

continue non-emergency service the providing In as of strict safety we which to pandemic. We work our follow teams in appropriate resumed residents And address to we emergency of residents, partners June, beginning basis. by as been service providing case the a and associates orders since protocols on set have trained. to on a case have

procurement we worked masks, hard has to and month hand Our sanitizers. supply gloves team maintaining secure also three a and PPE, are of

to did current provide being these the to equipped nearly able thoughtful are offices associates, about home business to to focus as as well Finally, we've do our who continue we specific continue so. promote their to efficiently In are our wellbeing. we we associates with benefits work health designed environment on run in to and measures, been opened. able from fully that additional to COVID And ensuring

long-term. move of demand same intensifying family single options we time decade Americans we effects demand space old with supply over significant COVID-XX pursuing growth in the these a create forward to demographics care The that continue million XX moving provide in to We next our single-family and years from stay the towards As to homes will future. housing We about of and the today. we pipeline residents quality bullish safely is XX markets. believe the see denser meet housing genuine in our high here, family over XX present to a to towards to while rental unlikely shift the ripple to over seem aged be preferences nimble at be single remain bright toward sufficient

apartment growth moved in we our resident or homes. to and like to single family live initiatives expansion And said, On homes of an acquisition, we've a from areas denser pursuing their CapEx learn fact COVID-XX more to versus home be upon a and also are increased into XXX about urban approximately our portfolio value Approximately move-in residents ancillary accretive desire investments of decisions. may further organic enhancing townhome. top service experience, to April returns. their housing and enhance the how our moved respondents, over in May, influencing XX% begun pandemic the XX% and surveying In survey who

opportunity our long-term pursue navigate we environment, growth think differentiators near-term this and are as there key COVID three advantage. the contribute we that we As to

we of supply the homes favor. in investing, our demand location high is neighborhoods The and are markets, infill our and in the areas most first fundamentals where are growth currently

The market. homes our nearly the in our market we That scale market scale is our intel and X,XXX from second efficiency of almost to per a is with driver and replicate impossible portfolio. density is key real-time derive

local us continue to with over and and on-the-ground to focus possible the support. the and put only for collaboration in we Third our place. in resident control is and in residents, people Thank competitive for the markets leveraging asset advantages communities scale these our have we with on the And enhances centralized supporting This of our work investors. is our experience. being you benefit teams all as quality associates,

care and Our to it core together as Chief is and been regardless way. standout home, has is Officer. ever come we citizenship to strong our demand product will mission with a meet a of make our turn you, to a our Operating may statement genuine our on that by as house values a Charles With continue what make for house Demand we home. it leading I'll Young, of over that,

Charles Young

Dallas. Thank you,

quarter basis the commitment resident our several Same-store thank second cover I'll we Average wavered how average way, of That rental their They've pandemic, XX a team. say second I've never year-over-year points was in quarter. I've the to now. associates has our I year-over-year. commitment to before to remarkable really the in team lot points had seen and great operating months occupancy the in you knew XXX what proven want but up rate sequentially witnessed a I our basis quarter was X.X% coming just change but are. in up genuine last First, care. increased evident field results, and second which the over XX.X%, their

COVID-XX. were revenues As related year-over-year, a partially factors this offsetting result, gross X.X% rental two to increased

X.X% first income was XXX gross debt rental an core XXXX the of bad in increase The which point second revenue XXXX, from of second basis on was quarter impact the the to same-store in in quarter. quarter growth X.X% in of

other our which of a XXX fees. income, the property in core attributable in second basis non-enforcement growth was point significant The revenue quarter, primarily on impact to was our same-store late decrease

same-store revenues demand in stronger increased even we occupancy in have largely in result summer recovery trends this high but start And and re-resident up estate turnover any with continues to In rise. differentiated occupancy primarily our due above uniquely growth same-store X.X% quarter XX.X%, XX blended growth result, to to seasonally same-store a X.X% expenses continues have With XX July. product improving our X.X%, markets lower new rate rent concessions to bringing activity, lease to XX%. markets has had year, rates. the July to X.X% leasing costs renewal Fixed rents the due a And respect points XX improvements re-resident to second have now and quarter turnover expenses net compare in resident decreased Renewal second trends the quarter. XXXX, each on in run This of a rate our the in and [ph] peak in and of become leasing record since rate quarter second activity, overall, strong the fell with averaged of the to growth in XXXX. X% months, lease approximately beginning occupancy grew days in core XXXX, five I'd year-over-year resulted turnover expenses of turnover collections. rate Starting controllable of not lower than prior respectively. see our we the of to The seen like XXX combination leasing month summer a we of driving resulted we year-over-year taxes. revenue occupancy. XX% healthy saw July turnover in in previous controllable NOI. decline time, in quarter average typical on decline. higher real X.X% of to attributable picked occupancy Furthermore, second new the continues days As XX% considerably year-over-year, at XX% Same-store favorably record with same-store Same-store This X.X% and eight increased X.X% in July. to July. wide-scale year-over-year set the of quarter. quarter month lower In the of resident year, above increase was in days occupancy the had season. July, June year-over-year increased majority same-store property in The rate X.X%. basis. same At turnover In during trailing the average a in full year-over-year expand expenses X% to in second higher core basis same-store a the X.X% decrease the April. and

up well the pandemic of the the held the have I'll course Next, which since beginning quarter. cover further over collections, revenue second and improved of

our For representing of of context, In seen from with payments represented pre-COVID, April to total payments a we each average. X% to prior and current billed month's amount revenue payment July, rent month XX% of XX% of collections representing XX% months. approximately historical XX% through from due month's rents billings from rents have current month past average, in on compared

number has the As we months. delayed payments greater catch of residents up pandemic on, prior from gone on have seen

the now We the ahead. what to a COVID-XX, was respect XX% As with planning as I'll XX% to road that, our over of remarks we're to that leveraging and the but XX%. residents future May This done disasters, that for an to the our regardless Ernie July. doing from experience and it close Financial in obstacles. genuine monthly how on each billings Freedman, to few do The stay With I'll it of do know not of overall holds to we to come our to outstanding that Officer. we're so platform and during and and nimble in way. of focused of in safely pandemic. our past know sure our our changes about average is our historical result, the June job compares and during to key so XX% feel this We've a care, the our they people assure increased percentage turn a we're power our adapt of Chief collections provide spread natural future in April are for with

Ernie Freedman

XXXX. results the and second balance quarter I With and Today, activity, discuss capital of thoughts Charles. quarter. improved topics: already from balance you, financial we markets second concerning to following the our investment Thank sheet sheet, activity, for the the strong position liquidity respect half last will

assets before we in As XX, In issued unencumbered. over half of debt almost shares used million. net repay XXXX in to liquidity. and stock had of million for maturing $XXX sold revolving No $X.X of our XXXX, June the we full on the the credit We proceeds billion quarter available outstanding of proceeds a $XXX balance facility. of XX.X million of second common

We cash that flow homes. time sheet. at By the to we proceeds use on have primarily to as our external with as dispositions, same opportunity expect proceeds funding well balance achieve to we leverage accretive our equity the the from remaining operations reduce acquire acquisitions growth, raise, and

As we homes a at million approximately reminder, buying XXXX per of a entered quarter. pace $XXX

acquisition volume second of pandemic. to we new as mid-March Our in monitor $XX quarter sourcing impact the in was of paused the million, acquisitions the temporarily the

product. our with footing. Homes refinancing our very no cash needs, have We flow the on since of near-term is pleased strong continued growth resilience solid been for liquidity, and business significant Invitation demand then,

new June. sourcing in resume acquisitions we result, a As

have While our investment been advantages in-house in AcquisitionIQ similar finding been for-sale buying remain so, we proprietary opportunities our leveraging tight, of teams successful up ramp local technology. we've to pre-COVID levels. compelling able inventory acquisition to the pace to levels a Doing and by

continue long-term strategy in second we quarter, did our accordance that gross proceeds also million. homes In not sold sell within the We for XXX fit XXXX of plan. disposition our homes to $XXX with

XX and results our financial FFO our and of and FFO explain are accounts and aged cover reflected in share I'd to income for same-store were debt. The both like residents’ for is increased the quarter. should higher included amounts. same-store property take our balances of as deposit due by results. debt security quarter moment recurring the bad on I'll We and past XX total X.X%, of cover resident's receivables. debt, driven Next, receivables per $X.XX bad policy results impact net a NOI rental X.X% than as lower and second revenues both AFFO for core recognizing debt and These second reserve other bad greater first All our bad respectively. $X.XX to CapEx. primarily the portfolio year-over-year days a Core days to AFFO for

than XXX% outstanding For deposit. bad amount debt security of all receivables less days, from the greater reserve the aged we of receivables resident, balances their as XX

rents other testament world our in. will plan compared a as payment many financial business are due types have Those have later not in For deposit of whether past living is that them payment as based the terms on guy collected We up a with that purpose the of aging, hand has been receivables based created. are as words, not paid good revenue P&L, the been any considered on due the charges collected. recognized the rents period positioned to offset a any other that on not view show lease, to plan are for balance resilience that performance resident. in not our negotiated real original in well revenue security estate the to-date model of to are a we do our In of a regardless

but as federal as going remains guidance concerning our difficult to to provide with of are comparing just to how thinking how half quarter. pandemic we the did said, completed the of That some second thoughts evolve. our XXXX we share prospects well business uncertainty environments, for We due it half regulatory second forward, for may pleased to want second the state local, XXXX are and continue to the about about

quarter, we to approximately the our discuss continue of we In remain collect bad expect bad First, second recognized In billings basis If second XX quarter that impacting to year. of let XXX me the per points. to XX% would debt the in the elevated debt. points items of revenue. half grew it month, first basis we

are offset unfavorable Another specifically these by quarter, key XXXX. various point, it is be were to to which half source how and around this second days Helping late re-resident, the last first the the income, compared of may in fees. evolve. continued to record-high little the million to our to more occupancy late for of fee regulations potentially In declines, lower of drivers possibility income and similar other turnover variances two experience $X seen fell we and in remains uncertainty a At continue restrictions over year.

July Charles for basis an year excellent in points mentioned, higher second As XXXX. versus average XXX the of year, half of was start occupancy last this

with to the addition, term, In continue we see leases. in near our more clarity lease growth in rates both solid over and new expiring renewal

quarter Regarding second with them. expenses, to and I'll third would remind book control you repairs turnover expect that expenses associated compared higher have to expenses maintenance our have some usually quarter. and seasonality our We

in the on the are the acquisitions. the and acquired be an to expect results compared discussed, previously third complete in in impact about home time acquisitions due the minimal of to the offers to resident move and the G&A home second first each market, takes of financial have NOI we year's in. our second we the As to to it we quarter. Typically back management initial half current and year fourth making for quarters the renovation of line, Below property $X.XXX higher to combined

the to having by fourth contractual be positive interest respect of count and are in how field expense and corporate our when Schedule of compared great to June third million will the communities. way close share second are costs, and how due in we about see XXXX issuance reiterating quarters with is we June our have includes X(a) of the the impact Supplemental quarter teams as in far to information our the shares. take be I XX. account into increases expect proud it thus will Average XX.X executed count we our the of higher compared in a to also $X.XX you fourth swaps. in share financing up second step to each Finally, to higher and quarter third quarters

a team have and resilient associates. business a We of first-rate

We base. pleased our estate position, strong the real resident with and quality strength the our our are liquidity of of

We investors our and to are for residents, the Q&A. communities, success associates, position near and open for line term long term. With staying up nimble both let's that, the in

Operator

now begin We will question-and-answer the session.

come Choe first with question from Sam will Our Credit Suisse.

Sam Choe

guys. I'm late Hi, of Doug fees. for Ernie on the about mean, talked today. I non-enforcement

this that Charles friendly you're kind the just those the does pandemic. versus I thinking throughout back now late I’m the initiatives we started when XQ But point, at and pandemic that of of going kind think rate offer resident about wondering too. fee, did, to good run how

Charles Young

Charles. Yes, for question. Thanks your this is

back waived thing with the thoughtful on started be for in tried residents. of where it kind this to a with played going there, just pandemic to we out. fees our all and the So see then from late March, just of basis to month-by-month it we all April, trying took And how

they May come homes interacting a residents So, of looked were make this the you interact times, that. them only conservative And really even with started at that June they get and did very who sure when slowly was their the and X/X running with and in goal our you with look try a our position can them, stay But when we taking and to had on those fees. homes. point, them about late form reintroduce. working chance call landscape, to going some really waive it was When fees, off we're regards whole into we The us we with at restriction ledgers. of to late to your fall so in would the residents communication I in hadn't we would many with. take

As are being changing and you extended. know, it's things landscape a

and us. like it. we're said, still if residents they a our we're more And out conservative keeping stance reach so to And with we're of on we eye working an taking

that main to in with and is our to trying those help. keeping need our who residents we're Our make work sure goal homes

Sam Choe

it. Got

of really might affected? if of wondering helpful. you from And sense Congress. normalized be delays resident that July, there's seen a That's by collections any April have your in stimulus population Okay. how to package we've I'm just much second Do

Charles Young

our our going on that see hard vast residents continue process It's hard it's into see, but time been The stabilize, visibility it's to We've paying to to do. able have what to have liked to. full we've been of majority really that. and

an keep we've how we'll like it, on So far. but trending eye we been so

Sam Choe

so Okay. Thank much. you

Operator

with Hill next comes from Our question Stanley. Morgan Rich

Rich Hill

ramping Dallas, guys. morning, Look, just good it question you're like is this maybe for Hey, you. up acquisitions. sounds strategy a

your You acquire but even really markets Houston like looks family well. how your us COVID-XX homes side you a to than It through, you bit was have to you're you're most the of maybe weaker, a did given prior going other more just in. markets like that to little could COVID-XX. single already of homes lot seems there talk density on in of and the for competition be markets

best? do it how you do you like what and to So, markets are going

Dallas Tanner

Hi, Yes. I'd make Rich. in points of A couple to like response.

is the tight. and that be the There's $X.X over year. even would somewhere next First $X between but basis, market limited that still on million you're right relatively million see we'll supply, transactions

active agnostic So being that on putting a know, in of one buying stay success XX, of and good environment, also, bit in we're of as you opportunities off offers which basis. actually by to of ground on bit months profile in at markets, the that We've being the the space, We've nimble portfolio time. long five, property at we locally the come we the term. stay where We're of one so being pretty were able a had last they and the type homes some with local success XX in terms builders being one flexible. able a on channel couple fit more long they through and in had want smaller a little quite in the as in pretty properties to doing

pre-COVID speak, up very the our lack and past competitive it. we've years so line as able fact pace supply. active certainly being And in as of pace The our that given where been can a eight we pace I back off of into have talked for we we left to right we our you're right a levels. run picked that Ernie expect to slowing that with deploy that fashion, in And environment, just way in down in environment. so while getting meaningful right capital it's offense, been the the terms would in about been in and same in today's

Rich Hill

Okay.

thoughts or let going markets it So specific just it any come on you're as may?

Dallas Tanner

and to in Well, question. should your have response I this first said we've before, this said

my but homes we So X,XXX as as apologies, managed efficiently XX,XXX Atlanta Seattle. in homes in manage we

for so ultimately feel even of in get we And comes us, our scale portfolio how services, to the the still of maybe behaving we additional have a making like and majorities and capacity our better understanding the expand toward the footprints, is better driving density. With customer that decision better wants. what

So are It it We expansion national would demographics say like the Western markets country. shift the continue is going parts could we in coastal in. have saying that formation of are should the I in markets, But – parts of markets more what two hasn't have Sunbelt really the are in Rich portfolio the the and like Atlanta. terms a that that the anything to Sunbelt times household see strategy. love been that not in formation. coastal makes mean, parts West some it in growth of part we'd even that fundamentals of of if our happen we household there's to average sense. our the to All those still our – all in the market the

our out markets. build in to these continuing on bullish footprint we're So

Rich Hill

quite you. XQ, look and very quick thoughts what What Thank maybe for as appreciate you, heard just Ernie, that but saw solid, strikes on XH. from I me not it bad at your very accelerating fundamentals question Dallas. in we the it. solid. policy, Got debt But I And remain I also was conservative. a

are fair fundamentals back rent. So as from maybe to collect are. you they going unpaid say of get But to maintain bit you'll debt bad it little is where a

Ernie Freedman

pandemic. I Rich, probably around happening been that's case. And to going there's year, the always seasonality business, what's little the the this in be a just because seasonality is of skewed hope Yes, but

summer the typically fundamentals lease accelerating higher excuse through As us new you it's saw, you on to and we there. side, because have me, the have for saw turnover occupancy rare increasing, months,

to up all consideration are third and our plans. debt About and plans, couple So receivable they'll this with us but that's bit of most majority around months we are gave paying. time, favorably of our of do those seeing months bad to of But only from people what vast on make or if revisiting a of have a is about old. payments we well certainly those have future, we do. their as to three playing, only year at worth folks. If see in policy view we point, we of plans, those to consider payment with took folks think hopefully debt. to on will today, reserving six is for who lot the payment way like bad out, a the it, set are payment people like And are a do pandemic better balances and we see and another of reason months our us give the we'd If because a pointing residents that do our maybe history we continue be rounds policy we pause point to little four which a we more wanted policy, history, plans continue we're those around on we'll on this on with payment good a the little folks conservative to conservative because people at and

Rich Hill

weathering on Congrats tough environment. a guys. really you Thank Yes.

Ernie Freedman

Rich. you. Thank

Operator

St. Haendel comes question from next Our

Juste of Mizuho.

Haendel St. Juste

down Good morning, Hey guys. there.

Dallas Tanner

Haendel. Hi,

Haendel St. Juste

is pricing power my at all first highs question – demand new at So clearly hand. retention occupancy highs and time favorable and with all and time

Are You year to can very and occupied? you from and And XX% strategy say, here? into in accelerations to would? see operating guys later What's further into new had beyond push perhaps we the you aggressively you are than pricing rates is typically a and fall? continue position. renewal more As advantageous inclined we the the July

Charles Young

knowing here. what for Hey, solving we knew and We pandemic, got occupancy. in on our we We demand we early product. early, wanted saw for question. that the the sure is ran Haendel. Charles here We for not then were to – occupancy up, Thanks the had. concessions future make our

throw And to we move so continue those the away.

May, So free concessions rate we of see and fully to were began we growth. by new a lease

So good and X.X, when rate the our X.X, to look position. that we're growth the on for have June us new and acceleration seeing high accuracy at allows results you July

we've working showed we side, challenging residents bit are in and residents that Now some with more knowing – balanced some on are the them. flexibility in of renewal been a our positions,

historically. as to So you see not push a but been bit as they'd that But our now. positive, high we're renewal rates starting

X%. our is close so into August close And X%, over to September to ask going

So we're business we're it of this that balance. is towards and watching end season. peak getting we're the and finding a the Again, seasonal

to So we'll monitor. continue

have account sub deal eye what portfolio teams keeping position. and always strong the great, our teams out going proper management our is are taking our as in dynamics trying to what's our we're in find on market. right are each the We But with well. revenue into balance and And now pandemic on

Haendel St. Juste

into curious receive? or that said, And you Charles. clarification great, been? on last you're what what's are spread asking point, or how that's expect to getting generally on you receiving translating the what you're Just That's X% that

Charles Young

in we this It's families. Usually, the hard points still with to get basis market. a XX But points. we're XXX to basis predict pandemic, in working

X.X. hard it's our September it. was closer a on So to ask number specific put to

several been the months. to X.X be three, last so, in the going we're than higher And we've

know, we're out ask. coming at higher you As a

to a typically So predict during to hard we'll period, within The it's this XX XXX basis is have to but points basis points. spread see.

Haendel St. Juste

you turn get can And optimal time on it that is higher to break the from Got two it. lease? on at much time if the turn about Are should getting then then I'm has upside, et and here upside or how pieces the second to you re-residents, sit cetera? days how turn I times, into My we from guess structurally Got close down you it. a the think the XX% potential less curious, just where perspective? can here to XX% number of occupancy, times question that

Charles Young

Yes.

business. business taking first, or could question So second that XX% be a first your always occupancy thought your this we question

math times that XX% kind our trending XX%. days that's where positive. get to several turn last to really just way a are over you into the And which the of as turnover quarters, XXs, that's our going trending you at we to looked we at to down we been We've do today. As been re-resident has and number of the have that, down the

Now given a faster, little what's pandemic. happening the

had pay So opportunity It the to that's we to this that. and focus have down us. really I And a and the We've for days said, – we're going knew to has XX we break as for there. We're period. made to a was good continue improvement real continue a attention of in five XX the been been down about good July. And year And to you been we're us to closer components. move-in at that benefit how days remainder the we've in July. down beginning year. we're the homes bright spot days. an since Days quarter-over-quarter, turning has re-resident We thing,

The healthy. at it, pricing as it's through appropriately. ability inventory the So doing things, by enough, to thank a really work this. they impressed and teams right of And things combination look been and them can't their really it's pre-leasing all renovated, been getting are

all hard to for them thank I So work continue push. we'll and the

Haendel St. Juste

And luck. you. Thank fantastic. best of That's

Operator

Our Nick Citi. next question with from comes Joseph

Nick Joseph

of about When dense more relative to in have from either is Thanks. I call moving your look the you of at children new color they their age residents, the the urban there anything those different if terms appreciate residence? residents at the areas. or typical beginning

Charles Young

And demographics. demographic trying Yes, there's demand And survey, we We as to space. seen any a from. residents out figure more has where been come Dallas material They did anecdotally, Nothing have half regards of really are the long-term in to this there. mentioned that's our pets. families. been out in people his has really have remarks stood were to to haven't over our difference

And shy are looking about social And I just have to of XX% that appreciating are distancing were And space. from as so the And during try is they the well. think extra cities. to a just of them pandemic, many space. the the benefit coming

So but early but change, the seen We'll of in to we process. haven't – terms it's monitor, continue in demographic the still it.

Nick Joseph

see. turnover traditionally leases may those any kind of that versus be it expire You wouldn't what differential temporary as you a renter more expect

Charles Young

and great residents in long three so. staying what with our it be to on do our we're great don't neighborhoods school care. current we I turnover And do average a for residents that. think to continue homes homes staying genuine and watch And resident experience good want if are time. of we all But districts, and period to we going why in we're rates, seems years is to that know they're and be At our expanding. we a that them have give

So we'll monitor. continue to

As demand been said, strong. has we

that go. watch we'll So as we

Nick Joseph

about of Dallas, sales. flip transaction Thanks. you talked side that, just asset market. potentially the the Maybe

You've obviously announced exit Nashville. you

markets? there. you most other You market, you of of out may your do exit? markets have and other almost in potentially any Chicago look Minneapolis, there you than the at homes Midwest Are You're fewer

Dallas Tanner

have. what Sure. really like We with We're own today. footprints we we comfortable the that

over the last You're couple right Midwest in the of years.

Chicago. down portfolio in of have the We our size cooled specifically

dislocation that the Some comes of the difficulties that we But some footprint of – center pretty of we've operating and that like wholesale, what some we're do with have us in anything got, obviously But the in on. right at nonperforming comfortable things properties expect thinking do by the we're maybe to parts Nick we're about now, least largely pretty have, around, local culling that assets, expertise wouldn't far, large, and certain we market. with by that we'll some now. always we're I at. geographic we're working where with of way and comfortable that

Nick Joseph

you. Thank

Operator

Jade with from comes question KBW. next Our Rahmani

Jade Rahmani

opportunities accelerate at adjacent wondering exploring or in if platform the was joint I actively and expand any order scale venture home markets you're much. growth. in very to Thanks types

Dallas Tanner

get It's Good time-to-time. that one question. Jade. we from

about Nareit. think I over at little this talked meetings a similar we bit

sufficient ultimately, think time from our some time. out some certainly flexibility something acquire an that to get those go inbounds we given more sheet. in markets with of I balance and our where maybe added we to and think about And more in we feel go additional terms JV did be inquiries offering we the quarter grow of were very we smaller having happy exposure equity out on to opportunities, of us portfolio. properties, the earlier in an maybe or active have on parts we added or to tool resource

consider So portfolio we're think and returns. in that's But grow got parts as continue something really right that to to through. good plenty now, of a We've we'll of in we really markets our themselves solid position. lend that continue think dry of risk-adjusted powder to to

we're a good So in position.

Jade Rahmani

provide services find I'm as to company's any as could platform? a transitioned to you proprietary vendors? Or multiple wondering describe of combination from if property point management platform, update to out fully much. very would at the also it Thanks is this a it you

Dallas Tanner

we've Well, day one. internal been from

an emphasis we're around all we folks around as relations, management the internally we business that we XXX% in sure the of managed put making and So and were our the internal. that and tenant all built centered

Now, we certainly and today's environment, networks we about to vendors do service our of use use in half vendor orders Jade.

work HVAC around work, on answer short in of and outside, maintenance terms internally particularly and everything are the internally ProCare but that do as all But would orders well. some we are heavier the small definitely things most So our and handled through we managed vendors of roofs list. those platform, an of we use do be,

Jade Rahmani

much. Thanks very

Dallas Tanner

Jade. Thanks,

Operator

Our Wes RBC. comes next from question Golladay with

Wes Golladay

just Hi, survey. to I back go good want resident morning to move-in that everyone.

just You from of stood you region see out-of-state looked any you moving out people to did if wondering urban are like in environments, a migration? but lot and I'm

Dallas Tanner

in were moved any wasn't we It standout per really There surveying recently – residents. market. was

so, of survey. of burst a a kind it's a And short –

And can the overall been our I so, of from demand now. than it a right more strong there's propensity And standout interest. regards markets to real in market – a no others. overall, in think, there's But certain showing see you that's

And stay there. so, we'll

Wes Golladay

reserve. back to bad it? seems towards bit Is to I little residents then just the levels. kind because And the at heavily near debt skewed Was that a look are June just way go Okay. of that but it slower, normal to want like correct

Dallas Tanner

at but Well, in June, get improved when quarterly collection skewed to are announced running you the our – about can a are same June, activity it's XX the I say are see Wes, as generally now to hard basis toward current look we outstanding as May debt or throughout April. that guess, your the bucket, It's X certainly it we're for quarter. and so And amount you bad your buckets. to still eligible on receivables

the throughout earned kind So, we of saw period. in

going continue it So to way we're feels to about it's say other, it's to of bad XX%, collect kind the one hard it hopefully, than skewed debt four today. have or we we if certainly world the months like that with look how do And that in you range at that's data, saw better But second in quarter. the of can that. can but we

Wes Golladay

Okay, thank you.

Dallas Tanner

Wes. Thanks,

Operator

question with next Our from Zelman Kalmus comes and Alex Associates.

Alex Kalmus

Hi. question. Thank you for my taking

funds is the consolidation mid-sized the pandemic, be from some the interest impression more Given potential players? competition and SFR’s of your appears outperformance What to renewed estate of traditional space. during there from real in private increased equity of

Dallas Tanner

have into the replicate And portfolios continues trying industry space, the moment trying quality are They're what at choice build in to we're I services and done. because companies thing offering of day Yes, the professional end country. capital Homes residents evolve. for generally the it to think We everything of having you're Invitation still coming we like already and new companies of saying. more welcome we this to grew the think that with across good

be we there a it. added will we over a of our to wants customer take run And we this none may industry, some today. anyone to opportunities. an think think experience value also good the – portfolio lot out added the and that way of offer there's demand of Selfishly, healthy a can or I because that itself about as advantage can to we think think well We there scale. distance, lend a time believe and we consolidation out second better business, of than it

all think as space coming capital viewed to as largely be thing. our distance good into And over new So will company of well. the I this it's and a beneficial time

Alex Kalmus

your the color. know And is channel for you say would right pipeline? agnostic, most what Thank you but are I abundant now for you guys acquisition channel the

Dallas Tanner

their selling that space, are working home. with iBuyers, people the working We're with very active in one-off

I efficient. and markets continue to those think more more get

So feel doesn't right. it

is all, healthy so of of far. a be distress let's sign First marketplace, not for a housing the There's in which clear. lot

more to fit and portfolio So think I with of find that infill builders then our needs traditional it way along opportunities see things. well. of would locations the is the to transaction And side do as there's ways redevelopment

So traditional the now. sales the right active one-off most being

Alex Kalmus

Got it. Thank you very much.

Operator

Our next Pawlowski question Green from comes Advisors. Street with John

John Pawlowski

but back if to walk lot. of thanks Hi, recent local have negotiations the I'm show trends, specific you’re standing strong that’s concerned starting had weeks on reopening into rate any curious economies recent portfolio, obviously the renewal collection markets very – summer. as standing some Charles, just heading markets out months. plans a and to up any some fatigue either in across just your or are in

Charles Young

to is California. The rent the from cases, really little occupancy us really be QX, growth to accelerating are number we've as year-over-year July, Yes, COVID look major is seen And an to the good well. all this July And question seen Phoenix is rates at some Charles. did at continued doing to any your I we're positive. minute seems in said, blended where concern. all gives Really, that look of renewal we all-time well. were board the Like Florida, June bit them and I Arizona, which to up. which you is dug what do across take anything holding a haven't have an States there, up of in of increase is a of Texas, high.

New dealing X%, is June. of we're growth Florida, other of at what Arizona, specifically kind collection the July X%, – Florida over markets X%, July are lease regulatory year-over-year all is XX% like And that revenue even we're of then with know is really versus side. Texas, we X.X% California the in far flat over off. exception, for more those challenges, in in on the but was more I've the not some And NorCal lease versus new growth. collected of it's it July. looked June but It's X piece SoCal at Phoenix X,

as we're we haven't still this overall – demand to monitor going thing good but really seeing watch continue We're So, seen and out. much. to play

John Pawlowski

that’s And It's even South a Okay. sense. year for then pre-COVID. term longer of outlook on your Florida. That outlook, three, lagged portfolio, curious the been just five your market rest makes

if portfolio prune the today, you you what of would sell? yourself homes could overnight, Florida So percentage

Dallas Tanner

of an actually the have. the first Well, been is South areas. of a portfolio rate of in of to one. size the market point. in terms growth this to take really portfolio it kind Florida well mean, your know. tends cycles We all, I'll – very enjoy little that a of flow It's you municipal I we interesting efficient. Hi, some it lackluster makes in and It couple there's challenges as

over portfolio South some the John, when the love over around North good. a right We what be, calling fine been might I and well. We've growth distance. of of had Dade Broward South and have Florida. sub-markets the and and in capital kind size We profile. know Jupiter success parts of buying in County. the some of still things We We're love degree, occasionally and the exact past love as time don't lot certainly tuning what those recycling couple similar that are it We years to done inbound of Chicago. to we've in

are some efficiency of little and But better that efficient, a getting it's going we're market bit to And for scale, maybe just a it also So but to a in growth see talked doing there. our in believe the that earlier worries see I it time nothing about Charles feels that market all time. that teams about us by slowly the long that job We've we're seen cull over and you be might really a we market. us good the bit active the make parts metrics actually of rate on underwhelmed like more get better side. a

making there. or I like run that thoughts around kind probably portfolio we So bit do wouldn't our before for want a definitive what would longer to of chances. any We

John Pawlowski

Okay, the time. for great. Thanks

Dallas Tanner

Thanks.

Operator

with Askarbek Alua from comes question next Bank of America. Our

Alua Askarbek

up questions following taking for two rate. two – quick I just you few questions, just so everyone. Hi, Thank have today. the renewal on the

limited on the renewal guys guys. multi-family any saying you're you increases like don't right where really that have now markets you're So rent

Charles Young

by certain has we have of to any we're those is residents out [indiscernible] going of – type to limitations either it then allowing numbers, – but put following that of we're resolution being our that and both state. but rules do in them. directly for a in works going of our and try local some us. work follow out, does we with at Washington and of – Yes, to every locally teams one generally that some the stand they’re to to that that's there California reflected are is all or well, time markets But the where restriction get as

Alua Askarbek

Got it.

really then move-outs. Is I there question move-outs the home any have really an And with on and a is quick turnover high, you quarter Okay. occupancy for more during increase just but low? in seen is know ownership interest mortgage rates specifically low that? really in

Charles Young

we Yes, this it's the historically a we've in been quarter, XX. slight trending saw and uptick, mid-XXs QX,

So rates, been jump. interest we'll you it's it's at rates, not in our as huge historic benefit. mentioned that, continue monitor a obviously with And but to

Alua Askarbek

it. Got

Okay, you. thank

Operator

with Our Sachs. Goldman next Rich Skidmore from comes question

Rich Skidmore

divestitures just purchasing? with the than you. should go b) just How about the that about to trend the how quick recycling versus impact regards as Dallas Good financial how you think forward? selling homes Thank to we morning. more you do how think a of purchases? a) question And think capital might about

Dallas Tanner

Yes, question. great

change – we basically factors, of We the ongoing on on a there's our on one rank the portfolio it's fall our basis. point, every in So, but assets two into number buckets. on important based that say, And they I your homes an to first where they're of that would all understand rank then hard is that the that score characteristics homes wherever home might and an ties and fit the also property sits and located, asset associated to on basically into currently property. rank with pretty we are which our today. And it imagine, finish is, you as

XXX in a we and nice portfolio job sub-market geographic does performance clusters sub-markets, team management really built at and the around. asset our measure the of at Our market We've that going deep also into about level.

of part from about growth ordinary as performance, go think both perspective accountable also course, basically the we perspective, properties hold through ourselves our to profile those do for those their from and so, a an and assets. we'll And operating return how

might home. a One, Now, make quite question, lot a on reinvest market sense reasons home back of and home because parts a into the to you there's And end more frankly capital would sell sell in it basis, financial your to of that may valuable. sense. it you recycle second becomes sell too could why market, user a the make where

much too geographically, well feel risk either that of second like a reason The as concentration variety be and reasons. we might like to we for spread have we'd

So of capital part management – list asset every process. kind of we'll go general plan our of have And scale. reasons up that's teams, our more And we of a process we our we potential all part management that looking also that watch as allocation around question. property why need year, to as things think team at we're they're to that through for where recycling recommendations your And we sell. bit coming might with a answer then

Ernie Freedman

Rich, Ernie. is So, this

net the with think, second I year external give in June, to it So, growth. to we the in pivot the half of us the raise opportunity did equity

sense worth a for few we've last $XXX to quarters minus remark, a almost our plus As about, homes Dallas the million as a XXth, talked sheet steady back ramp raise quarter. was to seller. June which as take to long-term. acquisition on those pace But at and about to was And up $XX we dollars assets balance always the of of – where don't equity pretty gives talked going going in look it selling us those with for million of try a homes. we're be million been couple our make that cash always just or here We're and million pre-COVID, to us having about per pipeline prior $XXX chance the it to hundred of to

homes half position acquirer or year a of first the half us the little puts in second versus the net the a hopefully that seller. is more of of in of to bit of be the in year a – net a So

Rich Skidmore

sort the trade-off the If that Or of running to dilution maintain net the near-term you've about to of do couple accretion perspective in quarters, think were over recycling? of the that of is you seller you how how out dilutive capital been that kind earnings? last

Dallas Tanner

range. about be talked that we're to the to when of homes, A bank process. asset Dallas we our four that fact property. Whereas an for be users more news as might lot user Rich, go things house a than The end worth it books assets set typically last anywhere will us, good and buy a typically X% typically to fives market of for an go on selling to through and that's kind sell is in the user today our And an we've well we're we're to the where cap selling between the Yes, mid end where for X%. buying there it in isn't just can to the been time. two rate, in distress. rental where X% normal are of sale we cap months to buying out It period below the rates end that's

because to our improving estate net portfolio of capital them the in though for in we activity an a better institution, quality our rental value to property. opportunity have real them locations in an ways and two who getting accretive us other as perspective tends users runs who recycling unlike types So may even we're end be from a than differently the assets to earnings sell

Rich Skidmore

Thank you.

Operator

Stender next Todd from Fargo. Our Wells comes with question

Todd Stender

Hi, thanks.

finer on get cap to point rates. a Just

months? maybe last keep that have rate to that edging coming are higher guys cap that quarters. due points Do lower raising you price rents X.X% You at Or enough in range maybe that the couple see buying in been the to level? over

Charles Young

questions we pretty, the we today. the see buy wholesale given of that all of the in in types help fives good, to portfolio earlier your I some Ernie’s And we to put to Ernie’s in past generally We're wouldn't to seeing point, but rate, see back better the would kind buying tend us for that been years. that one he kind that the it's in which we've, to It that point, couple the shifts picky – pretty we and I been And fives. of consistent portfolio. on to half strength. in the over of willing of real any it opportunities that stay what about year. It point, specifically, pretty kind pretty feels of type mid we're the mid expect earlier rising of answered, or expect manage does of in typically dramatic home

this and speaking six extend see cycles housing – the but but has with. something and months Now, selling later season year is next progressing, how we'll the been that anything in typical we'll mid-fives pretty feel and we further we'll buying but year, manage may watch generally comfortable home and

Todd Stender

helped at movement move? And metrics lately debt-to-EBITDA Okay, you've looking level leverage leverage, your down been range. How more see equity to times just drop pay using helpful. that's the into much that's your the line, low-seven should we

Dallas Tanner

June going the to the acquiring to in that we assets We're used think I raised they're or of for more and capital steady. is hold more capital less for using here going be de-leveraging. and be

debt it think you'll other like like to occupancy. plays otherwise things lot achievement, a to rental strong and comes on good comes good steady in we're trend of a news, it growth, when as good our the to seeing a bad EBITDA the half fundamentals, portfolio out. rate How in when So second I out going year. And how depend of see it's

we'll I time. down moving last So over of the you've to see modest seen that continue think period that

doing move period a takes NOI growth we've going time a and the for to buying little continue here contribution as be and able have as what which terms to for do opportunistically in then forward. focus. focused of we'll that. focus our is main something stay it EBITDA focus that. makes to that is sense But continue leverage, And certainly delever And we of if be second with unlevered, will That's to positive see we on assets going external it You hopefully, while to be to main be, consider growth the through to try to we in. been to – earn

Todd Stender

Thank you.

Dallas Tanner

you. Thank

Operator

question-and-answer our to to concludes closing back session. over Tanner And I like the any for call This would Dallas hand remarks.

Dallas Tanner

stays forward and Thanks. safe We We there we’ll Invitation in talking interest next out to everybody that quarter. appreciate all look Homes. hope everybody's to you

Operator

now presentation. The Thank today’s conference concluded. has for attending you

disconnect. You now may

Invitation Homes (INVH) 4 Aug 202020 Q2 Earnings call transcript