Invitation Homes(US:INVH)2022-04-29 21:11Financial Data and Key Metrics Changes - Invitation Homes reported same-store NOI growth of 11.7% for Q1 2022, marking the third consecutive quarter above 10% [22] - Core FFO per share increased by 13.5% year-over-year to $0.40, driven by NOI growth and interest expense savings [35] - Average occupancy remained strong at 98.1%, with resident turnover at a historic low of 4.6% [24][22] - The net debt to EBITDA ratio was 6.0 times, achieving the top of the targeted range of 5.5 to 6 times [33] Business Line Data and Key Metrics Changes - Same-store core revenues grew by 9.4%, driven by an average monthly rental rate growth of 8.3% and a 47.1% increase in other income [23] - New lease rate growth was reported at 14.8% for the quarter, while renewal rate growth was 9.7%, resulting in blended rent growth of 10.9% [25] - The company acquired a total of 822 homes for $341 million during the first quarter, including 518 wholly-owned homes for $218 million [34] Market Data and Key Metrics Changes - Leasing a home is over 12% more affordable on average than owning a home within Invitation Homes' markets, driven by rising mortgage rates [11] - The company has seen a 20% increase in website traffic from prospective residents, indicating strong demand [24] Company Strategy and Development Direction - Invitation Homes plans to leverage multi-channel acquisition strategies and technology to grow its portfolio, targeting total gross acquisitions of $2 billion in 2022 [19] - The company is focusing on partnerships with homebuilders to add new residential housing supply and expand consumer choice [13] - Strategic partnerships, such as the joint venture with Rockpoint, aim to specialize in premium location, higher price point homes for lease [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals supporting the business, citing a favorable macroeconomic environment and increasing demand for rental homes [8][11] - The company anticipates continued strong financial results and a positive resident experience, positioning itself well for the peak season [36] Other Important Information - The company has launched a mobile maintenance app to enhance service efficiency and resident satisfaction [27] - Invitation Homes is actively managing its balance sheet, including a recent $600 million bond offering to address upcoming debt maturities [31] Q&A Session Summary Question: Acquisition forecast for 2022 - Management noted that Q1 acquisitions were ahead of last year's pace, with expectations for increased activity in Q2 and Q3 [40][42] Question: Same-store revenue expectations - Management indicated that there is a long runway for above-trend growth due to a significant loss to lease of nearly 20% [44] Question: Turnover trends - Management believes current low turnover rates may not remain but will stabilize at a higher level than pre-pandemic [53] Question: Pathway Homes program details - Management highlighted the flexibility and choice offered through the Pathway Homes program, which allows residents to lease with an option to buy [54] Question: Bad debt increase - Management explained that the increase in bad debt was due to slower payments in Q1 but noted improvements in April [93]