INVH - Earnings call transcript Q3 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Invitation Homes Third Quarter 2020 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, Vice President of Corporate Strategy, Capital Markets and Investor Relations. Please go ahead.

Greg Van Winkle

Thank you. you conference us call. thank quarter our and earnings XXXX morning for for joining third 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 third 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-to-time. We Report Quarterly ended with SEC filings Form in and risks Form the on describe XX-K, June uncertainties some other period Report the our our of make XX, XX-Q for on we and XXXX from Invitation Homes forward-looking disclaims expressly do and obligation statements to any so. does not update

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

Dallas Tanner

ever. three need proud to execution also rental our high There in family shareholders. results resident for remarks to consistently Thank I'm team a meeting our want you, quality I for Greg. unparalleled We're demand the than with yet today. strong of is points my of to emphasize thrilled service, for is which so greater housing translating that are in quarter report time when another outstanding single

perform of we The business. continue first COVID stability the to our the strength extremely and during that well is validating

unique than bullish term we fundamental are our to is the for second ever more tailwinds due Homes long about The that advantages. Invitation the and sector

is offense with respect having our compelling, platform. that scale. position, in of to The leveraging our we're will our because add favorable We're returns also third expected of with acquisitions that to finding growth, power the great economies external staying of success on

the We basis on pandemic ensure with in strengthen set and acquisition strength our opportunistically joint are increasing the Rent in points pace through up quarter, of period. indicative diversified high opportunistic we've basis multi-year our capital our from continue remain that markets. points over our to enhance results XX.X% to occupancy also to year-over-year now our XXX a elaborate Same-store and growth and ability fundamental I'll of third XX the sources venture quarter. another record accelerated, has last the

XX% rents, unique we rates. collect also better to the expenses. in collection benefit last quarter. this up a rate X.X% at historical of and growth year basis average be XXX rent a higher our lease September from continued continue business of points last XXX of to The differentiators through our to and of New potential than On was quarter, to basis base points

estate result, prove a to broader challenging growth continues for X.X%, period a As that and economy to NOI were deliver we in same-store real the able sector.

that More satisfaction exceptional is high delivering in that The some virtual extra and maintain importantly, safe protocols homes and leasing feel in serve is perspective we've residents to been self utilizing to the safety. our and safely us technology The our our to nature we've service allowing continued time throughout freestanding residents, tweaks process. is for also for of with assets all port for a experience to residents, storm scores. an the years be allowing residents show resulting care genuine

we place, an that the exceptional now in orders springtime. associates their have our our and under To with say in that deferred we their all And and offices. be have With been worked for a circumstances. work associates special the during of bonus commitment care could through completely of have recently non-executives our measures recognized work would be understatement. corporate hard the frontline our not been I previously for backlog in and safety our field residents workers effort prouder

believe years from we to ease the housing value denser single professional leasing family beginning data come. to provide manager make bright to proposition indicates have think tested supply limited several of years. quarters flexibility of overall associates less a continue only their to ahead, and X% generation well available, may The that we the market. our designed also who believe rental be reach even future. being. a a than We business. resident millennial benefits and the single continue urban of family of today durability for promote demonstrated single the for to looking battled of is shift specific average and solutions institutional a We for be flexibility the also Furthermore, demand COVID family compelling housing home to health, in alternatives. on our And COVID sector to and With our is age XX we see surveying key more single part of And accelerating operators, to past homes property family rental positioned

by have $X investment experience in our opportunity, dry our of with rents, IQ to closed at that balance million it platform. with we acquisition strongly that we on and to can we billion formed to especially third our is with This homes buying this our quarter family to provide yield where on expected strong years. homes tailwinds X.X% joint these to rental venture million. local in over we The for portfolio. rate we like-minded back, the and grow underwritten these bring were of next we single relationships expectations NOI our channels. cap of X.X% these which and initial we quarter ramped rates. multiple But see across owned a of onto a upside up million great adds cash in flow, invest sources capital additional the in leverage Dallas in-place acquiring $XXX diversify feel we be addition our $XX as homes, couple continues which powder very to at sheet, a time acquisition to is bulk our simply ability partner consistent in also the in the that own external After technology, To are team's proprietary deploying cash over for end, operating acquisition a growth to in use exceeded $XXX pursuit pre-COVID With cap wholly activity

opportunity positioned have to At multiple With these capital our leading the goals. fund available investor overall leverage. an experience rental and the space. single well our to to operator us capital, our growth, industry our we'll of venture same technology down backdrop bring to substantial private the family as growth scale time, joint And we thinking sources against continue demand, the external achieve wanting enter

are The the invest makes in allocated for Acquisitions we to ratios both properties way structure with basis and and We simultaneously by Invitation on us that allows JV a accomplished the business. deployment for structure automatically a wholly-owned investor in highly enable JV manage with invest capital have for in operate our great to sense our achieve will entities partnered that Homes identically accordance thrilled the sourced be our team between investment their goals. an portfolio. predetermined and to entity blind to

the other anticipated In on advantages. be for the is structure costs. the residential [indiscernible] way, learn a estate. of housing are makes our reaches excess family peers future property closing, any the to five three we future We life. JV our the we Invitation when pipeline key differentiated we to of year for positioned and JV of about holds positioned Homes. what favorably market in relative to addition, by uniquely real its Along industry, incremental sector from are balance asset end types single Within potential rental expected excited well management believe within eight fees external growth In sheet, management the the

The our our infill demand most high first the favor. supply neighborhoods markets and homes, is within where location of are growth in

and X,XXX is second nearly market market. scale with density per our homes The

expertise our enable on and experience. control markets of is quality us our the the ground local that to assets teams overall resident in our better third The the and

Young, enhancing to residents your our support it to in Officer. committed turn ahead grow. are And our that over further now years we you Charles experience thank Operating Chief We mission. pursue I'll as as the for we we

Charles Young

Thank you, Dallas.

even brighter years. outcomes difference Let me to genuine care delivering the are and who our they pandemic. our led for reiterate efforts teams shareholders our out for Their there appreciation the both our shined residents have has to make everyday But outstanding residents. for during our

genuine longer. continuing care staying was quality quarter see to the We're and high and we This contribute deliver moving residents to no different. in homes sooner

to resident third At XX.X% the increase we And rents. market to of with quarter sequential well month marking XX points XX capture days. occupancy X.X%. year-over-year in are XXX year-over-year turnover to XX% September XXth increases. in This to time, from year-over-year Specifically drove X.X% executing fell the three straight occupancy day the days basis improved same

growth, year-over-year. month third rent accelerated today increased rent X.X% each where Furthermore, we up points to the lease quarter believe indicative third which XXX the increased new higher performance. to New the quarter the most are basis year-over-year fundamentals our Same-store grew is lease core bringing in quarter, quarter rents second for same-store X.X% growth of blended than Renewal X%. XX quarter. the growth in in rent X.X% basis points quarter during revenues

X.X% As X.X% revenues a occupancy rental a rate, year-over-year. in result average the rental increase of in aforementioned increase gross increased

related expected, partially offset As increase two factors was COVID-XX. by this to

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

in second turnover, decrease to quarter increased controllable core which resident year-over-year, halted in property higher of basis same-store point a our The taxes. fees. year-over-year in primarily core impact the X.X% lower the fixed primarily had to This X.X% Same-store NOI. X.X% decreased of property was net XX due significant increased in same-store on growth income, recovery, expenses was primarily same-store a non-enforcement expenses late in to due revenue expenses attributable increase X.X% resident other quarter, a

to rent continue the of had residents revenue collections We COVID two of our the by we average to an even X.X month offer is quality quarter, billings income strength our in our stability XX% covering collections, put remain a XX%. need. a our of flexible resident over healthy, Next I'll pre approximately across residents compared cover as And in to average testament third monthly some of XX totaled nearly the options that base. of each payment context and very cash revenue which months owners We times. moving high around to last collections of on the wage average, $XXX,XXX believe

remain many and we As move providing to will our to to presence similar to well our shareholders. far. has change care and it last market residents. months, will forward, served on to and confident as leverage That possible I'm housing flexibility local for focus nimble genuine on in in adapt us that we best pandemic And quality the the the residents service quickly high thus we result focus through outcomes our continue

Freedman, the navigate ahead. our turn I'll Ernie it to we road Chief Officer. With Financial over As that,

Ernie Freedman

thoughts discuss billion the and Today concerning cash capacity of quarter, balance had of investment third XXXX. the and $X.X revolver fourth Thank respect as unrestricted liquidity, results September sheet quarter the for topics, will to third liquidity, a and I the Charles. XXth. financial almost we in quarter activity you, With following

maturity half in debt no XXXX over final before unencumbered. of our have are We assets reaching

to any In and debt. to acquire raise million with used remain on we acquisitions $XXX the quarter, committed cash to without leverage. homes for funding of disposition The proceeds, us our sheet, continue operating significant we million. our third ahead, balance flow XXX cash Looking from gives reducing equity along cash June expected runway additional $XXX

gross with not for proceeds $XXX also sold that XXX did long-term fit million. strategy our We of homes

markets, our As with XXXX opportunity things in and balance a of are growth today remain compelling, external XXXX. plan the we net to we for acquirer stand a seeing into

increased I'll driven by X.X% quarter. Core Next results same-store These NOI the CapEx. AFFO $X.XX recurring X.X% results our in FFO per $X.XX cover share year-over-year respectively. and were financial to lower for higher third quarter primarily for and and third the

original debt all security cover impact of as is the resident. in deposits, both than security fourth less charges FFO the included the debt in thoughts due the terms reminder, recognized are deposits residents as receivables AFFO typically plan of even age a XXXX. is than of core provide XX of on they bad We some As with from I'll revenue, payment in reserve place receivables our and days. lease based now excess if past considered the our greater policy, with balances, bad due amounts XX upon quarter aged on not results. Under moving days

Dallas the and near the As business is difficult way future results great said and With two I future. the to pinpointing landscape continue uncertainty long-term conclusion our though, mentioned, That we thoughts concerning will months positioned thinking evolve. we in both may about the feel to the for the provide due are pandemic remains how how some of about left about year. XXXX, regulatory

but quarter. billings. recent quarter uncertainty, collections twos same expect a would be leasing percentage demand First, as let strong me at rental to than in to the Rent remain collections occupancy better we third With expect impacting continuing we debt revenue. been source or fairly discuss remaining in bad steady the XX% at items good to of were and the income. fourth in spreads approximately rate, of continue have of If months that gross in as

fell revenue the second be we $X to income a the drag on third quarters, In Finally, approximately of continue of year-over-year. non-enforcement fourth growth and late quarter. late expect million each in fees to fee by

years, decline may our AFFO the residents results are communities, believe result, generated sector. satisfaction should We'd respect to those to fees this delivering we step fourth us. fourth third family As in industry, is advantages the quarter, That maintain sharp be outcomes in with be of our rental to not large cost Resident challenging sequential the similarly high only up cost quarter for XXXX. the to maintain unique of With a fundamentals well year-over-year at we the of our in positive decline the typical year XXXX from is and are we've line scale the impact locations, XXXX we see an and to a seasonal in to expect our perspective. the others quarter in said, shareholders back, to so With beneficial as nimble flexibility forward. residents, many single on late already to seasonally all we as real side, be of was as in a year-to-date low circumstances With growth to and and on decrease fourth in local provide we great the of decreases quarter but our up from expenses, Taking because typically a a let's continue financial of to that in both contrast quarter. expertise. quarter scores also our turnover would world a not We of in time the expect turnover to respect residents, year-over-year open through remaining mid shaping third Q&A. third around and are path proud on differentiated focused the producing estate continue X.X% that, to for

Operator

We'll now first [Operator Citi. Our question question-and-answer from Nick from Please the Instructions] go Joseph begin comes ahead. session.

Nick Joseph

clearly a the Thanks. lot of is market capital. transaction attracting Dallas,

see if about some ultimately in So deals, end forward? you but you And capital of how would from cap you compression think amount expect that's to do institutional an going both going that also the think rates? from there chasing impacts users, perspective,

Dallas Tanner

terms been fives how found been in achievable the of also pretty kind the to cap We've the sweet years, from we've we've asked ourselves kind now. couple stabilized same Well, next. been in about called going that's NOI this and question, the a expectations of case because the Nick, rate, of year end through in for mid last early of think to that spot, of able

But normal thinking, You've and little pair haven't. transaction a some into year is end certainly we're a user with but following And normal. large around that expectations seen this leasing rate much appreciation cap a marketplaces. the little some pursue to been we the part need ebb than is of and has than flow rates year seeing different keep on have the maybe home further can price the might going it's in volume underwrite the present, bit the they we that side bit from because in given

So We'll U.S. pretty going keep because really on now, where year. the line the overall in it were somewhere transactions right to And it million going given this is X year. low of certainly healthy. we're something point we at which supply the still eye see the feels are into is this month in our is beginning in what the expectations around year, of with

Nick Joseph

And that quarters? but assets. continued maybe Obviously, side how of is external few you've a activity the just Thanks. growth sell over it about next then the should think we to sounds disposition flip like disposition, focus,

Dallas Tanner

calling, the Yes. we'll line expect doing course do don't pieces for We us. to would that. and of years. still been parts be portfolio for that That's We've that up ordinary and

in offers whether will we we been to We we're I'd to that's in might we've sell, operator, little be be ultimately The signal a or dispositions have the pricing everything from pricing smaller the you portfolios news a past that want selling low lower that case. a where when sell go see supply, do to selling something and excellent given getting out to that small all excellent than and we the vacant think and traditionally and perspective. that multiple there's good and that expect said try been is bit

Nick Joseph

trailing run in call near a at a The the rate, term. least quarter, it $XXX good million

Ernie Freedman

Nick, Ernie. this is

quarter to million to $XXX one be half, over our [ph] be. next for forward, that see million the kind like feels a you dollar it's the of of X% where period and it will think foreseeable time, portfolio would one future the each maybe range which $XX in going I about Atlanta of

Nick Joseph

Great. Thank you much. very

Ernie Freedman

Thank, Nick.

Operator

of The question Askarbek Alua with go next comes Please from America. Bank ahead.

Alua Askarbek

the everyone. for questions. Hi taking Thanks

looking this effective rates, Or the more? negotiating they points leases from became it after looks renewal the like start their So at XQ. is renters just to earlier XX are pandemic? signed basis that off leases Is it just dropped being because in

Charles Young

the days is is fact renewal Thanks question. Charles. When we about growth, lot think Yes. renewals that of you XX for expiration. it a This before about price the

pandemic going you're so hit when out the at And March.

pandemic the our cautious more going to were gave at and we a negotiate. being out You're room that little rates we as very bit unfolded teams

rates look our low transpired, in you at is point it's renewal July. days we as the think actual we've higher since out our seen we're those that, accelerating and on then, When on gone you on month the then growth – and were continue and how each little to negotiate where hit we've today. so been XX prior side great but what's a renewal June as a at And we about teams since to little tighter had a the trends you and

just think new of occupancy for being a occupancy then side the flip lease I on trying in is strong. when it flip, strong some So thoughtful, position, we position growth And we're the because been solve of us do power. really to has

renewals we will things So as think stabilize. better get to continue

Alua Askarbek

that. where out are now And December? guys can share November it. and right Got for You renewals going

Charles Young

Yes, no problem.

a to kind high And out mid mid five So out then November, December, we're at in just five. January to of actually look to going we're fives. starting we're going low

teams out little a to rents. of bit up. normal a capture to we're had work that with the asking but because spread we're market than to negotiation said, So then aggressive more pandemic. folks, We've also like our kind of bit continue going band tighten more I And

Alua Askarbek

you. Thank Great.

Operator

from question Credit go ahead. from Douglas Please next The comes Harter Suisse.

Douglas Harter

of deployed, as the guess the quarters? about be think should coming the layer in I JV, pace acquisitions capital you we how in Thanks. to

Ernie Freedman

this is Hey, Ernie. Doug,

especially off turn I I'll think did of to for in real it we opportunity, see over third a Dallas second how we here. the coming and quarter, a

to between next earnings did JV in but go was you a year in think just shaped a balance give that our sheet roughly a activity into of is Just split XX:XX bulk acquisition, goal release balance October, for is opportunity We about potentially, talked But, we been how the be And in I us a activity. and to what October we very pace. October. October. month, our Dallas, the the for on we're but out. portion the get a JV, little strong up And one-off seeing Yes, one ago sense it overall it's a a ramp so folks acquisition sheet. quick half highlight ago a may give sense roughly in can why again, should for, half

Dallas Tanner

remember of the for Yes. we about in months And took pandemic. three buying off just activity clarity,

middle of June, property. turn between pretty when We've but on towards start quarter, we're properties. said, million between a that close have to feel about to in So $XXX October, you $XXX close million of million a little things you we the worth bit of historically back end a we lag Ernie’s point $XXX obviously new likely when and comfortable

fourth be an progress could a the would opportunity if what I see we certainly there's million our of us. the monitor of outperform front a to And as quarter looks in that path then So we and quarter, $XXX like, say feels going that supply ability little bit bigger. forward,

Ernie Freedman

Yes.

the the keep each last So XX during talked that up acquisition transaction release, few the seen month bulk XXX in about the the months. one-off earnings was ramping we've pace, but of we

we really as into go good So we're feeling next year.

Douglas Harter

guess split? between JV do And start the guess and gets just we balance October I I kind when the does then of or split volume see the sheet, – that to

Ernie Freedman

Yes.

closing the finalizing We into expect certainly on for financing later our would year into the in in But sheet. I that November, the balance will close closed the some now, We're as assets JV done yet. December. see of JV. probably is everything is do JV the you right still haven't before

Douglas Harter

you. Thank Great.

Ernie Freedman

Thanks Doug.

Operator

from Associates. Zelman & ahead. from comes Please McGill go question Dennis Next

Dennis McGill

you Good morning. Thank guys.

are maintenance XX or This the home thought is sense or XX of question, any picture to service you level bigger but from they any just have on has question maybe a what What expenses now, expense your First and good work just an general you tenants more to mean would months, roll in bad? of how forward? either do home more do mode of and more directional for with from side. work give elevated then as many

Charles Young

past. Dennis. But of that take more Charles and of home, that want working our there's And us because there's clear that extra the to also on for are then lower the in homes anecdotally the we'd people We stay bedroom have work of are. This homes. turnover have how use specific Hey, had says appreciating I benefit but space it's don't any is and that. here. data many many in extra can functionally their They're and we people that all and and care from kids home think

to it. we're So continue going to monitor

bit also the but at That's day, us. end we're seeing the be it's to be but more to wear think I lower quantify, little a going there may hard tear, turnover. and of helping

think going it's monitor where We’ll to balance see we’re itself So it to I But out. to goes continue that. overtime. going

into homes. now going We’re

we're orders. said And work prepared Dallas caught of as completely our remarks. in orders any We’re up doing work all on deferred

to our we're ProCare So keep homes residents it. servicing when sure that we're program need going running our and make

most can and starts That less but So economy get from rest time I back to will as of would as will tell, think time like home, the economy. over are working expect, up. the less open you the people

Dennis McGill

to might now, on some going especially basis. think, property it's take lag be I helpful. seeing seasonally But range. have preliminary side, would price what adjusted price And a see consider that's the then And side? stable come We're time marketplace expectations and any would be to or X%, might this that come relatively when on you property typical about you through. tax I appreciation appreciation on of tax the in with imagine Got that been today really to to in conversations through X% through have you'd the And the it. aggressive how filter the

Ernie Freedman

having do. for different XX constant for working pressure the cycles, is inflation our through. greater than in we’ll the home – to to it with localities, pretty experts, typically communication It such in across are and it and inflationary positive well is of is cycle pretty the see that than Ernie. what country likely communication and we on across with We're takes can is the assessors price which appreciation, XX times to regards taxes. happening our Yes, about us to continue we're real And This Dennis. to unfortunately assessments country. greater as see a estate different constant months with with in we’re folks It's as what's working but local downside

And so have in part XXXX, around It's support what a our now And XXXX expense. XXXX. probably that team be guess But you're my business. country. see tax through in of constant place, the is bills, good if should our good a not we biggest seeing you'll but flow not

Dennis McGill

value to going added Ernie, pressure? rate would there's that the just municipal expect from you pressure be just budget on shortfalls of on top

Ernie Freedman

they that to because pass who way be, end-users. Well, and the those the same vote those in have to same the same at get along as remember assessments we Dennis, taxed all but increases there jurisdictions time, people could local

pressures we're the pressures very where Northeast, in few and the think markets. lot general, some is in biggest markets – news the good the I in the so where biggest – fiscal in not challenges of jurisdictions. probably be And in markets in to there's And invested, are those jurisdictions, the in is the going where's some the a of the dollars few of invested Midwest

than owners will we'll tax owners and neighborhood So votes parts pressure if the is have broader of that lives commercial we guess country everyone bill, real see the get more a but in in I residential higher think the even who jurisdiction. else for fact my more estate there, that pressure does other so

Dennis McGill

luck. Good helpful. guys. you Thank Okay that’s

Ernie Freedman

Thanks.

Dallas Tanner

Thanks.

Operator

Stanley. comes question Next from ahead. go Hill Rich Morgan Please from

Rich Hill

this Hey, morning? Ernie, you how are

Ernie Freedman

Rich morning How doing I'm about Good well. yourself?

Rich Hill

lovely. I'm

Ernie Freedman

Great.

Rich Hill

of and breadcrumbs is there tailwinds going bad with XQ you've want kind with line some enough some first of to, collected. to a those point rent going give on I to both you're become all, come Because we you I XXXX scenario start to were you historically headwinds to year? be back anniversary Hey half headwinds to XXXX. at for At that us collecting in the the second actually the where want as debt. the what in about and more are think point

Ernie Freedman

certainly and think it's it's debts, numbers that used we that points. would as to bad in to predict the XXXX, hope XX in were I have going to back basis hard the past, to XX normalize get things hope I to we'll when normalize, which that's we

that's we be now hard But through to It's our certainly happen. a predict way this work an right I may that certainly think would So possibility. point expectation that as some very when cycle. at

Rich Hill

And then portion the that that second of leasing seeing. you're it. is the Got growth

you seeing renewals, think higher it we're the you on continue what for I new suggest XQ. to can that, accelerate everything side lease in reported X% that said from

thinking correct rev. our rise to So seems I'm away, headwind XXXX, XXXX, healthy just as we but it about is meaningful I'm increase bad the debt as in lease path for And me methodology asking real think that continues maybe just goes there's that. and to about growth the to to same-store make I'm guide, trying – acceleration so a not you

Ernie Freedman

In the a anticipating original seeing was out the we're probably our be we five as as lot quarter expecting it acceleration September, factors this actually XX occupancy it in to going here, to or higher September. growth than basis important be was October in we're is about the a month. in tick finish rate rates out up lease finishing fourth new points And higher way in than on will certainly Well, same-store side. favorable where of we're we're

for XX.X So October and we're get is – finished to it to we XX.X. going looks September, at like

demand supply of but grow it. up for any we're from wouldn't don't a perspective. are they this typically us and And Rich, set where As a you trees seeing to see time always sky certainly in say, things favorably the

right We’re at a peak season now.

So, I've time a the been and space residential late season. peak seen in this for after fundamentals long have accelerating not

sets favorably So all up very for that us.

It's like little the whether known challenging bit rules hard. regulatory flip how going worked talked the that quarter on the third breadcrumbs, the may it's too third about maybe be, metrics, we're it I at run in us quarter fourth is business environment. like. really for same-store like we're But how quarter, be exactly ourselves things local want fortunate And look us up of cautious gave a better XXX team – lot in to getting or what side good XX, to On very feels and a I can in terms about through we out did we the we're our it's remarks. out, how how setting how a a days of pandemic as the about feeling XXX, change going not where as and prepared in on ahead far we about certainly good will has that. play

Rich Hill

Understood.

You have and I appreciate quarter. Thanks Nice I different that. jobs. But guys.

Ernie Freedman

Rich. you, Thank

Operator

St. The next question from comes Haendel

Juste Please ahead. from go Mizuho.

Haendel St. Juste

morning. Good there. Hey

Dallas Tanner

Haendel. morning Good

Haendel St. Juste

Hey guys.

the like my ago pricing in acceleration willing year pushing levels this in sounds is it pretty into the the guess still, at maybe on deeper a on typically than into rents power months are So first here little a managing going I you're continued has in year you still while push been And occupancy year XX side question portfolio, pricing rate and you end. row. the power the to you're the even years comments were harder by a remarkable, that your to you if grow would

to So growth? I'm application were Are perhaps ago? and create to color But sustain it it demand year the maybe operating blended how about about vaccine, how place, a some willing like returning to year, on degradation maybe I here to are they on normal maybe guess compare more you bit strong, type or concerned post is thinking perhaps normal you so bit of a sounds other to some next at maybe occupancy? look a levels least then the also occupancy, of we that more that a some we or path X%-ish curious, headwinds? occupancy rate world And a of into how as Thanks.

Ernie Freedman

seem multiple always a do No, you job good in asking one. to questions

will we done. we sure get So make try it to

get can me those Charles over of we you brought see if each through items up. let it So to to

Charles Young

occupancy. running that at hit, I'll last time. kind were nicely on start I COVID we best it's because, through note an think, the high I don't QX period all-time kind with Great. an I to important do when the I Hey, really of at Why Haendel to this QX, We're call of it. in said my for think actually on occupancy work highlight?

to out. position in of came And played under then how so strength and wanted all a it we see we

by great we a seven in And occupancy, And be quickly yes, days occupancy for that overall. been real that but our and push and how on demand, really on COVID We're, is so that But you we're pushing. lower has XX can mentioned, down rate we yes, also as got we're it's up. days our on a and gain occupancy some saw turnover, QX it's keeping little conservative teams days to but how I resident. quickly and pivoted we see now execution turn of we're down

So to that, rate if some gives capture market that to and try back to on confidence to the we normalcy continue rents. some do to side can try get us

September And a And Typically, on late slow so side. this absolutely we right and new new seeing similar to Again, same down October, on ended X.X% the very is now. season. will seasonality the have that at you're the seems in demand. lease lease

getting So we're to my teams in still to earlier are renewal trying that I our earlier the a balance And instructing capture to as side. comments, trying talked back about find we're right we degree, call normal We're to to but that. balance.

know and we push winter vaccine going be And uncertainty. too some when there we into may there's have moments the going a so we're be not some to to don't hard where here that

that a lot And just that. around just our we been another that. thoughtful down, do being be And And to place and times trying of can find the we driven really keeping do of a to that high business. want days manage right turn has pre-leasing we're like by where side where we keeping is occupancy getting to how that we resident So to gives us feel balance. position that

Haendel St. Juste

I Charles well. guess to the wanted a on thank as ask JV question you. I

I that JV will might conflicts understand on to is going potential that more arise, own Regarding pursue you balance similar sheet. your that assets

conflicts the And partner JV one would also also has talk mechanism can you markets? new new what JV then formed on similar maybe, in buy with any So the your perhaps you what’s versus that understand peers. buy resolving a about of for said your new JV perceived

that potential or carved how be conflict out addressed? of curious Thanks. perception might So

Dallas Tanner

Yes, great Haendel. question

First peer. would about of overall other structure, us but the talk more anything all, that with I'll do there's no between and conflict that

We allowed them. a for the zones in defined have that to same price operate and and invest we're

product. typically end more, And little buy a we you higher so, as nicer know,

about our the I'll like active at between properties JV balance the incremental where business way growth balance on Atlanta, us to a on market. own think it's is be The an as the go teams wholly think are way to owned a is balance maybe our is I more our the it opportunities are. about given the have in to what of into after an JV that we've capital way than JV into for we expectations. and perfect internally given we the more, that units, vehicle scale then and the see XX,XXX that active obviously give And able they you to would end that our day. example. We sheet, picky any done invest have to they our at for given with agnostic market substantial as contract. a have we or in and sheet, in allocate and we're for the to bit limitations portfolio the And certainly go time, Atlanta would normally be otherwise basically exposure we go buying, sheet In that we

level, as where level or And go. the aren't so call at our it they making folks those ground at market the decisions to

where discussed market kind ratios when on in predetermined go partners Ernie with the our delineate We of as and that we've JV. parameters us will have those mentioned that based help

Haendel St. Juste

Yes, I may Dallas. investing a appetite? in the space. list stories for JV add this we've heard I great in to folks that, that’s follow-up it future is what now? And of guess of long interested overall about if can the Certainly

or, in if current future JV out do appetite, have or JV are you second perhaps So a just extend Thanks. bring curious further you'd up? to this partner, inclined ability if the be one of the this more you to expand willing to perhaps,

Dallas Tanner

with have comfortable We're right partner now. the we

I think perfect XXXX price partner perfect of like a There's for having with structure Rockpoint is in environment. the why volatility. a stock this flexible is us example

balance your still sheet. see grow meaningful You opportunities to and own invest

balance have sheet. take flexibility absolute as potential a any to We company down our on M&A

could as have we to those opportunities if that. this want given expand see ways anything focus to, we're we comfortable forward. of to to with grow, negated any That worked, addition, own our off want find big rights I'm particular what we we've but don't if a not got. take balance as of and it it going away or sure we a structure sheet any in We haven't is focus And like And well. for growing us that we flexibility

Haendel St. Juste

Dallas. Thanks Great.

Dallas Tanner

you. Thank

Ernie Freedman

Haendel. Thanks

Operator

you. Thank

Please Jade ahead. from Next question from comes go KBW. Rahmani

Unidentified Analyst

is Jade. Thanks on This everyone. taking the questions. Ryan Hi for [ph]

looking are on increasing whether would all? Just if JVs other view sheet looking to of model consider to at or has players Wondering that strategy through he in through around your bill number or that footprint balance at strategy? changed the your there that a rent pursue pursuing, are potentially

Dallas Tanner

in comes new buy model. less what and more today So we'll of parts about you got again, that else not product about that builder of from XX% buy or But location. associated that's like compromising where warranties everything communities we with, builders

dove we for developer environment. we've first balance some I of the think risk done us and being today's this that's in is sheet don't a it, like associated thing as into with

homes the You've it able think We buyers of for being able best direct opportunity the that's location. being idea from a builders. got challenges. us to buy finished one of lines love our up labor to We be around rising and costs, good prices, if expectations of rising with

local in in are to open the in more partners to boutique builders market, finding nature together. it opportunities be that thinking are or with create strategically We certainly whether ways

the we and operating I not our part We in land, working that comfortable out comfortable feel very running on right entitlements now think with very right playbook we're fact of buying that business. we're now. in are the that

Unidentified Analyst

Great.

you wondering all onto bringing was these yield. more you return achieve Dallas your of quantify I in you on acquired of discuss at portfolios in typically You and type portfolio, see terms by can if of the scaled that can maybe public the mentioned platform? smaller more you upside broadly

Dallas Tanner

I what It's talk asset when question. in we can lease we year. lines Las we Vegas about lot see of want almost with XX, loss interesting we these a of properties. long-term, the trade to up first nine great a these last the that portfolios in out that's quarter the quality where also embedded in buy Yes, our times some in portfolio did

discount feel able able And bit where yields current loss lease. on a the be to argue pick more or underwrite months, up and to course a we're XX given and aggressive we that a lot over pricing that be are go can comfortable on so for either of of pretty the us, in the embedded of

whether go last year, quickly, the on very mid-to-high of in case Very or the and just we where, the sixes. of in all And we we low basis kind as had the an go stabilize probably kind did the once sixes all those a Las in Vegas of fives and there's yield portfolio things roll XX quickly in and turned in renewal were points those yield we portfolio easy Dallas, restructure leases, pricing. XX-month in the units we that a if So NOA re-established think, like saw there in we within of got we turned the off. in vacant I or bought renewal it low to that period,

hard buy after. Dallas quality Vegas like today that that's market go to or So in Las we given the a

and So assembled we been have somewhat smaller definitely that these opportunities the stabilized. like portfolios buy to are

Unidentified Analyst

Great. questions. for taking Thanks the

Dallas Tanner

Thank you.

Operator

Skidmore Sachs. go Please Goldman ahead. comes Rick question from next The with

Rick Skidmore

do quick to headcount? personnel acquisitions, of you in do Dallas, couple your have up that, you up existing do scale just ramping of you. in ones, a can or to Thank terms that

Dallas Tanner

the on variety a with for team no we have, that of built scale We're so head count. impact

Rick Skidmore

All second And quick one. right. then

of talked your How terms you Thanks. you revenue, now and Investor at In XXXX? ancillary you that thinking into go growth. ancillary are revenue a year Day about ago as about

Dallas Tanner

will the Day. the out and in line rent Yes, few that that which smart laid optional long rolling help packages, more business the we'll some residents. we're opportunities And with spread a we also a well was our pilots for programming plan our haul. well driven there's the that out monthly year better on It We've the expand create Investor costs, as will as offering. overall our our down over this for of be updated both

second also updated as is part of thing we've The rolled are our automatic out which now our programs, leases. filter

those are lease as XX the a have cost new believe well. There's a to resident. But we business this you piling out fine nationally. to with for that out on us we also our roll on that expense over cost. your will drop September you material shipped to this If control, that But sign in days HVAC talked down there we we're that home the other some drive benefit a that are side, about last tuning the way pest before be expected few every we things we're that we're year other few and piloting ideas Day, impact of that time kind then a a in filters today, will replaced And to – Investor get by as goals the helping such achieving of year. we well of out during laid

Rick Skidmore

Okay. Thank you.

Dallas Tanner

Thank you.

Operator

ahead. go Please from from The next Markets. Janney Batory Tyler question comes Capital

Tyler Batory

I crafts ramping terms should in with any on questions. change out are builders some And you beat some less of well? are last, as of Hey, markets, demand any sourcing acquisitions, Wanted good morning. you perhaps? in more the these terms as that are any of dead sorry mix looking attractive where to of the be on follow-up Thank a of questions. you in then topic. up on for into of I'm when opportunities side But terms acquisition there thoughts acquisitions, the or might working bolt to you markets dynamics taking specifically more moving horse at looking the new my there, see or

Dallas Tanner

XX% say of typically now, kind X% XX% it. the put through right change traditional real then XX%, XX% relationships. I no channels would through of community in mix. in I maybe volume coming the And to Yes, another of this piece is iBuyers/FSBO builder

lines. think back with we're are better robust about iBuyers, new open working them sale getting I that's also the focused on. talked product we're past, We and up channels and an will lease our algorithms more and that in that things really with hopefully on area

blended We look of Sun family, we the In it's and terms in no, versus mean, we're of almost day. multi-family a night come with Belt. Southern and for love what amount extremely I out Northern suspects in the I really at fact it's difference seeing what is seeing love usual still California, demand. California mean, good both our the seeing tremendous between single And you coastal occupancy. that have are rates of high market we're if presence us. mix, the

continue down we've parts buy for Midwest, are that and And So bit to like mentioned Florida road. for little the to to about and be good those Atlanta. or in question as margins presenting have the a markets question product Phoenix, potential around our call HOAs relation us. as on to properties being of continued disposition markets us Charlotte and smart the in of that your Dallas as cap challenges on South to add the to continue to I try We in before like much want we footprints Denver, the can markets JV

shape group So they numbers is teams in portfolio are. go so job specifically and done and the his execute teams it have today, Charles really done can putting – a in management that asset out the has the nice the of

Tyler Batory

That's things, creep question, CapEx in of renovation, terms side see might on impactful that or great. you cost helpful. curious Okay, on the be and initial there. the follow-up costs And as many reoccurring, a material labor CapEx of both

Ernie Freedman

haven't. Hey, Tyler, we

– have we we running or assets than ago. or and years slightly on our when inside, more unfortunately initial eight, budget and they or harden investing been have acquire So to beginning, maybe would home the at our renovation budgets continue nine seven, a

the side, things pressure So that for we're contracts some locked good into on we're buying R&M. that CapEx for majority the And the fortunately hasn't been us. of R&M for a price recurring

we're side, okay. that this or seen haven't could on environment cost really the it we closely. be some doing great very but side the It's challenges monitoring in labor far so there, ask any but very, there to So pressure we're the question

Tyler Batory

for Great. Thank me. That's all you.

Dallas Tanner

Thanks.

Operator

comes John question Pawlowski The from Please go with ahead. Street. next Green

John Pawlowski

a long-term a Just bullish values handing high don't one make on in the are are of from don't and hold, big values five you and sense gift curious you to think growth question some kind are temporary or expect. up can you Dallas, you COVID at conversation, propping And of follow-up you that markets less me. pull is potentially of a sale. where market the forward bulk terms sugar a years, stare terms a on, disposition in three exit rent values we in the a

Dallas Tanner

plus a by about I take minus housing Yes, supplied a a units sugar think I you if John back, we're I under or rush too word. strong probably of probably is mean, truthfully million is, today. think, it step

So that's creating natural a right, pressure pricing, demand from on perspective.

warm impact. I think are the seen, one of for seeing moving from things, buying markets school on they a And has sure moving example, of like same house probably do decisions the them. very to a taking temporary of these residents going of people term. later it's they several COVID-related space. and your and to be some I weather, bankers things. better want in in with where A to homes time two-year’s In Florida. these point, want lot know totally longer in all they quickly if we have are parts mean, to of for making you're of south, northeast prices I'm districts the I or whether it's the Florida, and some pricing some the year

out supply think to mean, has XXXX. point to that pretty a opportunity taking see parts markets little our maybe back we been to plenty I at of don't get demand does of of part equate that step same having has rush, suggest There's powers, bit of given But completely. low assets problems anything Well I – that the today to But some last definitely an a down in we’re going maybe question latter selling that market of we in this sell in time time your weren't the your don't that year-over-year. sugar first pricing selling portfolio through year, on assets. I see of carried to of any a I all, would in road? the want

book try on don't I to we're these if So the looking of yield. an relevant some market things, trade And our really to sell today. a you at sort way it's remember we’ll entire think

got would you in to where, parameters looking for be size. of line trade of a price something So that's at with normalized somebody be that

people So and question, both the answer in bit I exacerbated a feels south. are short rate like your marketplace is It of healthy. you it the don't And but think seeing that is pricing so for being asset certainly supply reflect with lack the sure. to moving in feels

John Pawlowski

Okay. Got Thank you. it.

Dallas Tanner

Thank you.

Operator

from go Derek ahead. Johnston question from comes next The Bank. Please Deutsche

Derek Johnston

what to continued on plus to home purchase given sales the trying the have track even do the of you and doing? gain in you home portfolio recent the family covered a you dispose are I'm or the how can accretion And the mark-to-market is especially You rise markets, here. And specific so values How versus creative. NAB more largely, lot, try to homes were and in CapEx? single everyone. opportunity better the initial Hi XQ, when your embedded be understand versus price secondly, fired? the share in and

Dallas Tanner

ways. forward of any Derrick home-by-home basis. on the home-by-home couple that you BPO, So price we we look do index. the And that a our that we on we of a kind it then last a at take just rolled basis. got on based at We a And again it a We different way we housing it was do opinion. broker at we of time look – described one look in

homes. about – we from you if and bought XX,XXX homes bought XXXX, of cap our think we And we're pretty But then have seen to a the active where those and to about came at not at time worth our fair them, of it each for of because buyers get that also course point. NAV great world, think from increases amounts two us of give rate BPO rates because platform think top approach. are got good some and a it's against on what So what some another a is did it, for between do of these they homes XX,XXX around homes cap they're each is. had same We sellers. large we sense pretty perspective. then we And the triangulate we're a spreadsheet, active mainly we often these sense Homes XXXX, when and Colony what the Starwood, on nice with we the XXXX. and homes when There sense markets I a the merger those XXXX, compare average are other the was certainly XXXX, appreciation in XXXX, we Invitation in always value are We

in the the Derek, we sell financial can't we our agree today as top our the our see be an is our you and there's have our do we most my gains disclose I you if what think, in exact terms have happened of would sorry. homes dollars in don't of number. you statements, would that, the approach, significant with are there. and basis from give I that's And share So values GAAP if the of rate or cost look exact statements the I'm can what head, other certainly do I you number a terms basis is and cost I are GAAP cap at in what homes approach in off than there, BPO increase financial of a in increase that that then of where billions those many appreciation

disclosed As other on is, financial than that our we what statements.

Derek Johnston

We that Thanks up. guys. can look

Operator

any to no are question-and-answer over more back to remarks, questions There Dallas Tanner for the concludes turn queue. I'd conference closing the in like our please. This session.

Dallas Tanner

joining us this concludes operator all today. our for again And you stay Please Thanks safe. call. wish best. the We

Operator

attending conference you for concluded. presentation. now Okay. The today's Thank is

may You now disconnect.

Invitation Homes (INVH) 30 Oct 202020 Q3 Earnings call transcript