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Invitation Homes Announces Next Evolution — Providing Professional Management Services to Portfolio Owners

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Invitation Homes Inc. (NYSE: INVH) has announced an inaugural agreement to bring over 14,000 single-family homes onto its property and asset management platform. The agreement is expected to provide capital-light earnings growth and increase the company's scale within its existing markets. The homes are located predominantly in Atlanta, Phoenix, Dallas, Carolinas, Orlando, and Tampa. The CEO, Dallas Tanner, believes that this expansion fits efficiently into the company's operations and adds value to its core business, potentially leading to meaningful earnings growth and further margin expansion for its wholly owned portfolio.
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The strategic move by Invitation Homes to provide property and asset management services to third-party portfolio owners represents a significant expansion of their business model. The addition of over 14,000 homes predominantly in existing markets such as Atlanta, Phoenix, Dallas, Carolinas, Orlando and Tampa is a clear indication of leveraging their existing infrastructure for growth. This model is capital-light, as it does not require the same level of investment as purchasing or developing new properties, yet it allows for earnings growth through management fees.

It's important to note that this agreement could signal a shift in the single-family home leasing industry, where economies of scale become a competitive advantage. By increasing scale within their markets, Invitation Homes could achieve better operational efficiencies and potentially higher profit margins. This could be particularly attractive to investors looking for companies with a strong potential for organic growth and margin expansion.

Invitation Homes' new agreement to manage a significant number of homes for a third-party owner is poised to impact their financials positively. The property and asset management fees are expected to contribute to earnings growth without the heavy capital expenditure typically associated with real estate expansion. This approach aligns with a trend in the real estate sector towards service-based revenue streams, which often come with attractive profit margins and can be more stable compared to the cyclical nature of property sales.

Investors should monitor the company's net operating income (NOI) margin closely, as the deal is anticipated to contribute to its expansion. The company's belief in the potential for 'meaningful capital-light earnings growth' suggests confidence in the profitability of this venture. However, the actual impact on the financial statements will depend on the fee structure and the efficiency of managing the expanded portfolio.

This inaugural agreement by Invitation Homes to manage a large portfolio of single-family homes is an innovative approach to real estate investment that could redefine industry standards. By focusing on a service-oriented revenue model, the company is diversifying its income sources and reducing reliance on direct real estate investment. This could be particularly appealing to investors who are cautious about the capital-intensive nature of traditional real estate investments.

Furthermore, the strategic choice to operate within the company's existing markets may mitigate risks associated with geographic expansion and unfamiliar markets. The real estate investment community will likely watch this development closely, as it may present a replicable model for asset-light portfolio expansion. The long-term success of this strategy will hinge on the company's ability to maintain high service standards and resident satisfaction across a larger operational footprint.

Inaugural agreement to bring over 14,000 homes onto Invitation Homes’ best-in-class property and asset management platform, offering opportunity for capital-light earnings growth

DALLAS--(BUSINESS WIRE)-- Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”), the nation’s premier single-family home leasing and management company, announced today that it has begun a new era of providing professional property and asset management services to portfolio owners of single-family homes for lease. This next phase of the Company’s evolution is being launched through an inaugural agreement with a third-party portfolio owner that will bring over 14,000 single family homes onto the Company’s industry-leading platform. The agreement provides Invitation Homes with property and asset management fees that the Company believes are commensurate with its expertise and unmatched scale. Substantially all of the homes are located within the Company’s existing markets, predominantly Atlanta, Phoenix, Dallas, Carolinas, Orlando, and Tampa.

“Providing professional management services to large portfolio owners is the natural evolution and expansion of our best-in-class platform that we’re proud to have built and refined over the last 12 years,” stated Dallas Tanner, the Company’s Chief Executive Officer. “We believe this not only fits efficiently into our existing operations, but also adds value to our core business by increasing scale within our markets.”

Mr. Tanner continued, “In addition to extending our exceptional brand of genuine care and resident experience to over 14,000 households, we believe this agreement could be the first of many to provide the Company with meaningful capital-light earnings growth, attractive profit margins, and further NOI margin expansion for our wholly owned portfolio.”

About Invitation Homes

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The Company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Company's expectations regarding the performance of the Company's business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association and insurance costs, poor resident selection and defaults and non-renewals by the Company's residents, the Company's dependence on third parties for key services, risks related to the evaluation of properties, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of unfavorable global and United States economic conditions (including inflation and rising interest rates), uncertainty in financial markets (including as a result of events affecting financial institutions), geopolitical tensions, natural disasters, climate change, and public health crises on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of its Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report”), as such factors may be updated from time to time in the Company's periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release, in the Annual Report, and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

Investor Relations Contact:

Scott McLaughlin

844.456.INVH (4684)

IR@InvitationHomes.com

Media Relations Contact:

Kristi DesJarlais

972.421.3587

Media@InvitationHomes.com

Source: Invitation Homes Inc.

FAQ

What is the company name and ticker symbol of the single-family home leasing and management company that announced a new agreement?

Invitation Homes Inc. (NYSE: INVH)

How many single-family homes are expected to be brought onto Invitation Homes' property and asset management platform?

Over 14,000 homes

Where are the homes predominantly located?

Atlanta, Phoenix, Dallas, Carolinas, Orlando, and Tampa

Who is the CEO of Invitation Homes?

Dallas Tanner

What are the expected benefits of the agreement for Invitation Homes?

Capital-light earnings growth, increased scale within existing markets, attractive profit margins, and further NOI margin expansion for its wholly owned portfolio

Invitation Homes Inc.

NYSE:INVH

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21.13B
609.68M
0.34%
104.58%
1.56%
Lessors of Residential Buildings and Dwellings
Real Estate and Rental and Leasing
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United States of America
DALLAS

About INVH

invitation homes specializes in acquiring single family homes in situations such as foreclosure or short sale, rehabilitating, leasing, and professionally managing our properties. our innovative investments help residents to establish long-term links to their communities, resulting in rejuvenated neighborhoods and thriving cities across america. with over 46,000 homes in our portfolio (and growing every day), invitation homes is run by some of the most successful specialists in the residential property industry, in partnership with one of the world's leading private equity firms. our unparalleled knowledge of residential property, combined with our financial stability and entrepreneurial vision, has enabled us to lead the way into today's single-family rental market. our corporate office is located in downtown dallas, tx. we have regional offices in arizona, california, nevada, washington, illinois, georgia, the carolinas, florida, and minnesota.