DALLAS, Nov. 16, 2017 /PRNewswire/
-- Invitation Homes Inc. (NYSE: INVH) today announced the
completion of its previously announced merger with Starwood
Waypoint Homes. Beginning today, the combined company will
operate under the name "Invitation Homes" and continue trading on
the New York Stock Exchange under the current ticker symbol for
Invitation Homes (NYSE: INVH). The merger brings together the
best practices, technology, and personnel from both firms to create
the premier single-family rental company in the United States, with an unparalleled
ability to deliver enhanced service offerings to residents more
efficiently, continue investing in local communities, and generate
value for stockholders.
Fred Tuomi, Chief Executive
Officer of Invitation Homes, said: "Bringing together the best of
both companies will help us continue to enhance customer service
and expand housing choices for our residents. We will be able to
more effectively and efficiently deliver exceptional living
experiences near good jobs and good schools for families choosing
to rent. Our combined team is excited about the future and the
opportunity ahead to continue serving our residents and supporting
local communities."
The transaction combines two companies with highly complementary
capabilities, including Invitation Homes' industry-leading approach
to customer service and asset-management expertise, and Starwood
Waypoint Homes' best-in-class technology. Overall, the two
companies have invested nearly $2
billion, an average of approximately $22,000 per home, in renovations and maintenance,
improving the resident experience and driving economic growth and
job creation in local communities.
The combined company owns and manages a portfolio of
approximately 82,000 single-family homes. While Invitation Homes is
now the largest single-family rental company in the United States, its portfolio still
represents less than 0.1 percent of the more than 90 million
single-family homes in the United
States, and just 0.5 percent of the nearly 16 million
single-family homes for rent in the
United States.
Financial Highlights
As a result of the merger, Invitation Homes will benefit from
economies of scale and greater operating efficiency that will also
enable even higher-quality customer service. Invitation Homes
continues to expect annual run-rate cost synergies from the merger
of $45 million to $50 million. The
transaction is expected to be accretive to core funds from
operations ("FFO") and adjusted FFO on a run-rate basis. The
combined company is also expected to benefit from a stronger
balance sheet with improved financial flexibility, lower long-term
cost of capital and a continued path towards deleveraging.
Leadership and Corporate Headquarters
As previously announced, Fred
Tuomi, former Chief Executive Officer of Starwood Waypoint
Homes, is now Chief Executive Officer of Invitation Homes;
Ernie Freedman remains Chief
Financial Officer of Invitation Homes; Charles Young, former Chief Operating Officer of
Starwood Waypoint Homes, is now Chief Operating Officer of
Invitation Homes; and Dallas Tanner
remains Chief Investment Officer of Invitation Homes. The
Board now has 11 directors, consisting of six current directors of
Invitation Homes and five former trustees of Starwood Waypoint
Homes. Invitation Homes will remain headquartered in
Dallas, Texas, and will maintain a
presence in Scottsdale, Arizona.
Advisors
Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
acted as financial advisors and Simpson Thacher & Bartlett LLP
acted as legal advisor to Invitation Homes. Morgan Stanley &
Co. LLC and Evercore Group L.L.C. served as financial advisors and
Sidley Austin LLP served as legal advisor to Starwood Waypoint
Homes.
About Invitation Homes
Invitation Homes is a leading owner and operator of
single-family homes for lease, offering residents high-quality
homes across America. With more than 82,000 homes for lease in 17
markets across the country, Invitation Homes is meeting changing
lifestyle demands by providing residents access to updated homes
with features they value, 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 high-touch
service that continuously enhances residents' living experiences
and provides homes where individuals and families can thrive.
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, which include, but are not limited to, statements related
to Invitation Homes' expectations regarding the anticipated
benefits of the merger with Starwood Waypoint Homes, the
performance of Invitation Homes' 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," "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 associated with achieving expected revenue synergies
or cost savings, risks inherent to the single-family rental
industry sector and Invitation Homes' business model, macroeconomic
factors beyond Invitation Homes' control, competition in
identifying and acquiring Invitation Homes' properties, competition
in the leasing market for quality residents, increasing property
taxes, homeowners' association fees and insurance costs, Invitation
Homes' dependence on third parties for key services, risks related
to evaluation of properties, poor resident selection and defaults
and non-renewals by its residents, performance of Invitation Homes'
information technology systems and risks related to Invitation
Homes' indebtedness. Accordingly, there are or will be important
factors that could cause actual outcomes or results to differ
materially from those indicated in these statements. Additional
factors that could cause Invitation Homes' results to differ
materially from those described in the forward-looking statements
can be found under (i) the section entitled "Part I-Item 1A. Risk
Factors," of the Annual Report on Form 10-K for the fiscal year
ended December 31, 2016, filed with
the Securities and Exchange Commission (the "SEC") and (ii) the
caption entitled "Risk Factors" in Invitation Homes' definitive
joint proxy statement/information statement and prospectus filed
with the SEC under Rule 424(b)(3) on October
16, 2017, as such factors may be updated from time to time
in Invitation Homes' periodic filings with the SEC, which are
accessible on the SEC's website at http://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 and in Invitation Homes' filings with the SEC. The
forward-looking statements speak only as of the date of this press
release, and Invitation Homes 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.
Media Contact:
Sard Verbinnen & Co
Brooke Gordon/Liz Zale/Emily
Claffey
(212) 687-8080
For Invitation Homes:
Investor Relations
Greg Van
Winkle
(844) 456-INVH
IR@InvitationHomes.com
Media
Claire Buchan
Parker
(202) 257-2329
cparker@invitationhomes.com
View original
content:http://www.prnewswire.com/news-releases/invitation-homes-and-starwood-waypoint-homes-complete-merger-300557718.html
SOURCE Invitation Homes Inc.