What changed in this filing

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Item 1. Business

2023-02-22 compared with 2022-02-22 · 147 added, 173 removed, 220 unchanged (59% of the section changed)

Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes in sought-after neighborhoods across America.

With over 80,000 homes for lease in 16 markets across the country as of December 31, 2021, we are meeting the needs of a growing share of Americans who prefer the ease of leasing over the burden of owning a home.

Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes in sought-after neighborhoods across the United States.

With over 80,000 homes for lease in 16 markets across the country as of December 31, 2022, we are meeting the needs of a growing share of Americans who prefer the ease of a leasing lifestyle over the burden of owning a home.

We provide our residents access to updated homes with features they value, as well as close proximity to jobs and access to good schools.

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Each aspect of our operations — whether in our corporate headquarters or field offices located in our 16 markets — is driven by a resident-centric model.

Our associates take our values seriously and work hard every day to honor the trust our residents have placed in us to provide safe and secure homes for them and their loved ones.

In turn, we focus on ensuring our associates are fairly compensated and that we provide a diverse, equitable, and inclusive culture where they are appreciated for who they are and what they bring to the business.

We also place a strong emphasis on the impact we have in our communities and to the environment in general, and we continue to develop programs that will demonstrate that commitment.

Our associates take our values seriously and work hard every day to honor the trust our residents have placed in us to provide clean, safe, and functional homes for them and their loved ones.

In turn, we focus on ensuring that our associates are fairly compensated and that we provide a diverse, equitable, and inclusive culture where they are appreciated for who they are and what they bring to the business.

We also place a strong emphasis on the impact we have in our communities and to the environment in general, and we continue to develop programs that demonstrate that commitment.

In addition, we ensure that we operate under strong, well-defined governance practices and adhere to the highest ethical standards at all times.

During 2021, we continued to adapt our priorities and evolve our strategies to navigate the challenges of the ongoing COVID-19 pandemic.

Since the beginning of the pandemic, we have implemented a host of measures to ensure continuity of our business operations and services while protecting our associates and residents, including modifying the workplace and adopting new business practices to align with health protocols and adapting to changing operational realities.

While our business has not been materially affected by the COVID-19 pandemic, we continue to monitor the situation to ensure we fully understand and define any potential impact.

Since the beginning of the COVID-19 pandemic, we have implemented and continue to follow, as appropriate, a host of measures to ensure continuity of our business operations and services while protecting our associates and residents.

While our business has not been materially affected by the COVID-19 pandemic, we continue to monitor the situation for any potential impact on various aspects of our business.

Through certain of the six holding entities that owned our business prior to our initial public offering (the “IH Holding Entities”), we commenced operations in 2012.

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Our approach to investment and asset management similarly combines local presence and expertise with national oversight.

Our investment and asset management teams are located in-market and apply their local market knowledge within the framework of a proprietary and consistent underwriting methodology, with support from national leadership based in our corporate headquarters focused on investment and asset management strategy.

Through the integration of investment and asset management and property management functions, our platform enables our teams to incorporate real-time information regarding leasing activity, property operations, maintenance, and capital spending into asset selection.

Our investment and asset management teams are located in-market and apply their local market knowledge within the framework of a proprietary and consistent underwriting methodology, with support from national leadership focused on investment and asset management strategy based in our corporate headquarters.

We believe the advantages of our integrated acquisition platform and local market expertise have driven the quality of our existing total portfolio of 83,113 homes as of December 31, 2022.

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Property operations encompasses the in-house local market management and execution of marketing, leasing, resident relations, and maintenance functions.

We have developed and employ a highly scalable, vertically integrated, and resident-centric property management service platform, referred to as “ProCare.” All of our property management functions have been internally managed since our founding in 2012, and we have implemented an extensive property management infrastructure, including an online resident portal, smart home technology, a mobile app for residents to schedule and track maintenance requests, a technology suite to manage work orders and associates, dedicated in-market associates, and local offices in each of our markets.

We have developed and employ a highly scalable, vertically integrated, and resident-centric property management service platform, referred to as “ProCare.” All of our property management functions have been internally managed since our founding in 2012, and we have implemented an extensive property management infrastructure, including an online resident portal, smart home technology, a mobile app for residents to schedule and track maintenance requests, a technology suite to manage work orders and associate schedules, dedicated in-market associates, and local offices in each of our markets.

We have organized our property management associates and operating structure such that Vice Presidents of Operations in each of our markets are responsible for the operations of local leasing, property management, and maintenance teams.

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Our associates are responsible for establishing rental rates, marketing and leasing properties, and collecting and processing rent.

We establish and manage rental rates based on a dynamic, rules-based pricing tool that is informed by local market conditions, including a competitive analysis of market rents for institutional single-family rental properties, growth in single-family and multifamily market rents since a specific home’s last lease commenced, the size, fit and finish, and location of the home, the number of applications received, and the number of days a home has been available on the market, as well as qualitative factors, such as neighborhood characteristics, community amenities, and proximity to employment centers, desirable schools, transportation corridors, and local services.

We also consider a number of qualitative factors, such as neighborhood characteristics, community amenities, and proximity to employment centers, desirable schools, transportation corridors, and local services.

We typically begin pre-marketing properties 30 to 45 days in advance of their becoming vacant to maintain high occupancy rates and reduce vacancy losses.

We advertise available properties through multiple channels, including an exclusive period on our proprietary website, internet listing services (such as Zillow, Trulia, HotPads, and Realtor.com), MLS, yard signs, search engine marketing, social and other digital media, and local brokers.

We advertise available properties through multiple channels, including our proprietary website, internet listing services (such as Zillow, Trulia, HotPads, and Realtor.com), Multiple Listing Service (“MLS”), yard signs, search engine marketing, social and other digital media, and local brokers.

We offer flexible showing options for convenience, including virtual tours and floor plans on our website, self-showings that leverage the home’s smart home technology, and in-person showings.

We own internal brokerages to serve each state in which we operate and primarily utilize in-market leasing experience specialists to drive a better end-to-end resident experience that achieves our occupancy, revenue, and retention goals while facilitating enjoyment of our worry-free leasing lifestyle.

We own internal brokerages to serve each state in which we operate and utilize in-market leasing experience specialists to drive an end-to-end resident experience that achieves our occupancy, revenue, and retention goals while facilitating enjoyment of a worry-free leasing lifestyle.

Prospective residents may submit an application through the application portal on our website.

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We encourage meaningful community interaction across our digital platforms by continuously refreshing the content of our website, blog, and social media accounts with articles, home maintenance advice, contests, and incentives designed to enrich the lives of our residents and protect our homes.

For example, we alert our residents to prepare for storms, incentivize them to pay their rent online, offer “Lease Friendly” and “Make It Home” design tips and contests, and hold an annual Resident Appreciation Day.

Resident engagement and social following continue to grow, and we receive positive feedback from residents, who specifically mention our approachable lifestyle and home maintenance content that helps them make a house a home.

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In addition, our in-house maintenance associates conduct periodic ProCare visits to our properties to help foster positive, long-term relationships with our residents, track and report maintenance needs effectively, conduct preventive maintenance, and ensure compliance with lease terms, local laws, and HOA rules and regulations.

We temporarily paused a portion of these visits as a result of the COVID-19 pandemic but began reinstating ProCare proactive visits during 2021.

ProCare service, our property management service platform, includes several touchpoints over the term of a resident’s lease designed to enhance their satisfaction with our service model, improve the efficiency of our service and our homes’ systems, and ensure that each resident is properly educated regarding the home and their responsibilities.

When a new resident moves into one of our homes, our associates conduct a resident orientation (occasionally virtual due to the ongoing pandemic) during which we revisit the terms of the lease, outline what aspects of the home’s upkeep are the resident’s responsibility, walk through all of the home’s major systems in order to familiarize the resident with their safe and proper operation, and inform the resident that we will be conducting a post move-in maintenance visit.

ProCare service, our proactive property management service platform, includes several touchpoints over the term of a resident’s lease designed to enhance their satisfaction with our service model, improve the efficiency of our service and our homes’ systems, and ensure that each resident is properly educated regarding the home and their responsibilities.

When a new resident moves into one of our homes, our associates conduct a resident orientation during which we revisit the terms of the lease, outline what aspects of the home’s upkeep are the resident’s responsibility, walk through all of the home’s major systems in order to familiarize the resident with their safe and proper operation, and inform the resident that we will be conducting a post move-in maintenance visit.

Following the move-in orientation, each resident is encouraged to keep a record of any non-emergency service items.

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Finally, the post move-in maintenance visit allows us to more quickly identify residents who may not be adhering to the terms of their lease or may be subjecting the home to undue wear and tear and/or damages as a result of their treatment of the property.

Following the regularly scheduled post move-in maintenance visit described above, our in-house property maintenance associates in each of our markets conduct preventive maintenance visits about every six months during the life of a resident’s stay in the home.

Following the regularly scheduled post move-in maintenance visit described above, our in-house property maintenance associates in each of our markets seek to conduct preventive maintenance visits every six months during the life of a resident’s stay in the home.

During preventive maintenance visits, our in-house property maintenance associates inspect the home’s systems, paying particular attention to potential safety hazards as well as potential causes of damage that could result in us incurring significant maintenance costs if left unaddressed.

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Our markets were generally selected through a robust process utilizing an analysis of housing and rental market supply and demand fundamentals, macroeconomic and demographic trends, and risk-adjusted total return potential.

Specifically, the process we use to select and, on an ongoing basis, evaluate our markets ranks these markets based on relative weightings of factors that include, but are not limited to, forecast population and employment growth, household formation, historical and forecast deliveries of new residential housing supply, discounts to replacement cost for single-family residential housing, size of the addressable market, volume of new and existing home sales, potential yields implied by the relationship between market rental rates and the price of single-family residential housing, forecast home price appreciation, and forecast rental rate growth.

Specifically, the process we use to select and, on an ongoing basis, evaluate our markets ranks these markets based on relative weightings of factors that include, but are not limited to, forecast population and employment growth, household formation, historical and forecast deliveries of new residential housing supply, size of the addressable market, volume of new and existing home sales, potential yields implied by the relationship between market rental rates and the price of single-family residential housing, forecast home price appreciation, and forecast rental rate growth.

We have amassed significant scale within our 16 markets.

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In evaluating acquisitions, we analyze numerous factors, including neighborhood desirability, proximity to employment centers, schools, and transportation corridors, community amenities, construction type, and required ongoing capital needs, among others.

We target submarkets and neighborhoods in undersupplied high-growth markets and leverage our in-house acquisition and operations teams’ local market expertise to acquire homes in in-fill locations that we believe will experience above average rental rate growth and home price appreciation.

We target submarkets and neighborhoods in undersupplied high-growth markets and leverage our in-house acquisition and operations teams’ local market expertise to acquire homes in desirable locations that we believe will experience above average rental rate growth and home price appreciation.

Our in-house acquisition teams are comprised of dedicated professionals located in our markets and at our corporate headquarters who provide strategic direction and broad oversight.

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As a result of our large existing portfolio and volume of acquisitions to date, we believe we have a high degree of visibility into rental rates and fixed and controllable operating expenses, which allows us to more accurately underwrite expected net yields of homes prior to acquisition.

We also collaborate with local market real estate brokers and others, and we leverage these relationships to source off-market acquisition opportunities.

We also collaborate with local market real estate brokers and strategic third party technology platforms, which we leverage to source off-market acquisition opportunities.

Within our markets, our approach allows us to screen broadly and rapidly to identify potential acquisitions in highly targeted submarkets at the neighborhood and street levels.

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We are able to drive cost efficiencies through local oversight of the entire process of renovating our homes by our associates.

Each property’s detailed budget and scope of work prepared by our in-house team of renovation professionals is reviewed and vetted by our in-house asset management and operations teams, and in the case of work we contract directly, presented for bid to one or more of our pre-approved vendor partners in each of our markets.

Each property’s detailed budget and scope of work prepared by our in-house team of renovation professionals is reviewed and vetted by our operations teams, both locally and nationally, and in the case of work we contract directly, presented for bid to one or more of our pre-approved vendor partners in each of our markets.

In the case of work for which we rely upon general contractors, we set prices based on the scope of work involved.

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We believe the significant local density of our portfolio, which averages approximately 5,000 homes per market as of December 31, 2022, allows us to selectively sell properties without sacrificing the operating efficiency of our concentrated scale.

Environmental, Social, and Governance Initiatives

As one of the nation’s leading home leasing companies, we have an opportunity and responsibility to contribute to a more inclusive, equitable, and sustainable world.

Our mission, vision, and values define our daily actions in delivering on our pledge to be a responsible corporate citizen.

Our mission statement “Together with you, we make a house a home” reflects our commitment to a resident-centric business philosophy.

Each day, we live out our values of Unshakeable Integrity, Genuine Care, Continuous Excellence, and Standout Citizenship as we strive to benefit our residents, our associates, our communities, and our shareholders while at the same time advancing initiatives that make us more innovative and our processes more sustainable.

We believe that integrating environmental, social, and governance initiatives into our strategic business objectives is critical to our long-term success.

In 2021, we completed a formal ESG materiality assessment to identify opportunities for us to make the biggest impact in the areas that our stakeholders prioritize.

To ensure consistent attention and focus on ESG matters, we have created a dedicated, cross-functional ESG task force of associates led by executive management.

As a part of their role as stewards of our company’s long-term performance, our Board of Directors plays a critical role in understanding how ESG issues affect our business strategy and performance and provides oversight with respect to our ESG initiatives and policies.

This responsibility is assigned to the Nominating and Corporate Governance Committee of the Board of Directors.

The Nominating and Corporate Governance Committee works closely with management and regularly meets with and reports to the Board of Directors on our ESG strategy, initiatives, and policies.

We also believe in the value of feedback, and we hold ourselves accountable.

To that end, we participate in the GRESB Real Estate Assessment for a third-party evaluation of our ESG performance, and we have linked this performance to the pricing of our revolving credit facility, whereby improvements in our GRESB score over time can benefit our borrowing costs under the facility.

In 2021, we achieved a 13% improvement in our sustainability score with GRESB, surpassing the 5% hurdle set forth in our credit facility agreement for achievement of the pricing benefit.

Environmental, Social, and Governance

As one of the nation’s premier home leasing companies, we have an opportunity to make a profound impact through sustainability initiatives as we seek to embody our values of Unshakeable Integrity, Genuine Care, Continuous Excellence, and Standout Citizenship.

Our mission statement “Together with you, we make a house a home” reflects our efforts to creating an exceptional leasing experience for our residents, a workplace where our associates can thrive, and ESG practices that contribute to a more inclusive, equitable, and sustainable world.

We believe that integrating ESG initiatives into our strategic business objectives is part of our long-term success, and we continue to evolve our corporate strategy to meet sustainability and social responsibility commitments.

To that end, our in-house ESG professionals and a cross-functional task force of associates ensure consistent attention and focus is placed on ESG matters.

In addition, the Nominating and Corporate Governance Committee of the Board of Directors is responsible for monitoring, reviewing, and providing oversight with respect to our ESG strategy, initiatives, and policies via periodic updates from management regarding our ESG activities and progress.

We also believe in the value of feedback, and we hold

ourselves accountable.

We participate in the GRESB Real Estate Assessment for a third-party evaluation of our ESG performance, and we are the first United States REIT to link the pricing of a revolving credit facility to our GRESB score.

In 2022, for the second year in a row, we achieved a 13% improvement in our sustainability score with GRESB.

Through our integrated and ongoing approach to sustainability and corporate responsibility, we seek to drive positive change and create value for our stakeholders.

Our guiding social responsibility, business, and workplace policies apply to our directors, officers, associates, and vendors, and they are posted on our website.

Our guiding social responsibility, business, and workplace policies apply to our directors, officers, associates, and vendors.

These policies apply to all activities undertaken by or on behalf of Invitation Homes anywhere we operate.

Among other things, these policies encompass areas of community and associate engagement, diversity, equity, and inclusion (“DE&I”), human rights, corporate governance and ethics, and environmental initiatives that reflect existing and emerging standards of corporate social responsibility.

Environmental Stewardship

Protecting the environment is critically important to us, and our corporate responsibility initiatives help limit the company’s carbon footprint and the environmental impact of our homes.

We take our responsibility around carbon emissions very seriously, and we continue to look for ways to lower the level of emissions from, and energy use by, our homes.

While our residents are responsible for utilities that control energy and water usage, we take a proactive approach to improving the environmental footprint of our portfolio by, among other things:

• using energy-efficient ENERGY STAR® certified appliances when feasible;

• utilizing smart home technology to help residents manage their homes and reduce their energy bills;

• installing low-flow plumbing fixtures and greater efficiency HVAC units;

• installing water-saving landscape designs in arid locations;

• educating residents about energy-efficient practices;

• maintaining stocked vehicles to reduce trips to hardware stores and eliminate unnecessary travel;

• reducing drive times for our repair technicians by optimizing routes and triaging maintenance issues;

• utilizing an HVAC air filter home delivery program for our residents, which may prolong the life of our HVAC systems, reduce expenses associated with repairs, minimize downtime associated with system failure, and provide better air quality in the home;

• investing in the Fifth Wall Climate Technology Fund to support companies creating climate-friendly technologies for real estate;

• running a Green Spaces community initiative that brings residents, associates, and business partners together to expand conservation efforts in our markets.

We are committed to sustainability and being a good corporate citizen.

We focus on environmental sustainability because we recognize that the operation of our assets, the way our associates manage and conduct our business, and the way our residents use their homes can have a meaningful impact on the environment.

While each resident is solely responsible for utility expenses related to energy and water usage, we seek to address environmental impacts within our areas of control and encourage our residents to do the same in their homes.

For information about our perspective on climate change see Part II.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Climate Change.”

Social Responsibility

Our success is fueled by the growing demand for high-quality, single-family homes for lease.

Many things contribute to an exceptional experience for our residents – the speed and effectiveness of our service, the quality of our portfolio through our ongoing commitment to maintaining our homes, the Genuine Care we provide in each interaction, and much more.

By offering quality homes in attractive neighborhoods, we believe we give residents the choice to lease a home in a community

that may not have otherwise been attainable.

We strive to provide our residents with a worry-free leasing lifestyle through service that includes welcoming them with an in-person home orientation at move-in, making their lives easier with our smart home technology and other lease offerings that enhance their experience, and providing 24/7 maintenance combined with our best-in-class ProCare property management service platform.

ProCare is an innovative platform designed to provide regular opportunities for us to inspect our assets, proactively address issues, and ensure each home continues to meet our standards.

With the safety and well-being of our residents and associates being our highest priority during the ongoing COVID-19 pandemic, we continue to follow protocols that enable teams to safely provide outstanding service to residents.

These protocols include:

implementing a safety training program and providing personal protective equipment for all associates;

adhering to strict safety protocols for maintenance service trips;

leveraging self-show and virtual-tour technology;

and offering virtual options for resident move-in orientations and pre-move-out visits.

Additionally, while the COVID-19 outbreak has required us to modify our property improvement and maintenance procedures to accommodate resident safety preferences, as a currently designated “essential business” we are completing all maintenance work orders unless a resident reports symptoms of or exposure to COVID-19.

In March 2020, to act on our core values of Genuine Care and Standout Citizenship, we began to offer solutions for residents experiencing financial hardship when requested, including the ongoing creation of payment plans, without late fees, for residents requiring flexibility to meet rental obligations over time.

We also provide residents assistance with finding available rental assistance.

As a result of these policies and the dedication of our associates, we have helped thousands of our residents receive more than $50.5 million of rental assistance through December 31, 2021.

We continue these efforts today.

Additionally, we believe that we are in material compliance with federal, state, and local restrictions on items such as evictions, collections, rent increases, and late fees as appropriate.

We also believe it is important to listen to our residents, and we incorporate their feedback to continuously enhance the Genuine Care we provide.

We survey residents at each key step in their journey with Invitation Homes, including at move-in and move-out, and after every in-person interaction they have with an Invitation Homes associate or vendor.

We use this feedback to hold ourselves accountable, with all of our field associates having a portion of their compensation tied directly to resident satisfaction survey scores.

We strive to provide a work environment that attracts, develops, and retains top talent by creating an engaging work experience with opportunities for development.

Further, our engagement with residents, community members, vendors, and others helps build strong connections that benefit our communities.

By offering quality homes in attractive neighborhoods, we believe we give residents the choice to lease a home in a community that may not have otherwise been attainable.

We strive to provide our residents with a worry-free leasing lifestyle through service that includes welcoming them with an in-person home orientation at move-in, making their lives easier with our smart home technology and other ancillary service offerings, providing 24/7 maintenance combined with our ProCare property management platform, and surveying residents to ask for feedback that can help us make their experience even better.

We have been successful at driving consistently high resident satisfaction by promoting a culture of Genuine Care, including through a formal recognition program and by linking all operational associates’ compensation to resident satisfaction.

Maintaining consistent and transparent communication with our residents is a priority.

In the last few years, we have updated resources on our external website to promote transparency, including:

• a step-by-step guide to our application process, including detailed qualification requirements, for potential residents;

• a detailed move-out guide to inform residents of the steps to take when moving out of one of our homes, as well as tips on how to receive their full security deposit back;

• a detailed list of lease components, such as rent, utility reimbursements, and ancillary services, to build awareness of the service selections residents have made and the charges they are responsible for when they lease a home.

We also believe it is important to listen to our residents, and we take their feedback to heart in our quest to continuously enhance the Genuine Care we provide.

We survey residents at each key step in their journey with Invitation Homes, such as at move-in and move-out, and after every maintenance interaction they have with an Invitation Homes associate or vendor.

We use this feedback and other information to hold ourselves accountable, with 100% of our operational associates having a portion of their compensation tied directly to resident satisfaction survey scores.

We also use feedback from surveys and focus groups to help inform new service offerings and enhancements we make to the resident experience.

In addition to our website and resident surveys, we engage with our residents through monthly resident newsletters, blog posts, and social media campaigns and contests.

As a result of listening to feedback and making positive changes to improve our homes and our services, in the summer of 2021 we reached and now maintain an all-time company rating of 4.0 on Google and Yelp combined.

In addition, we retain an A+ rating with the Better Business Bureau (“BBB”) and received BBB accreditation in January 2022.

Our all-time company rating of 4.1 on Google and Yelp combined, our A+ rating with the Better Business Bureau (“BBB”), and our BBB accreditation evidence our commitment to resident satisfaction.

Human Capital

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Associates are the backbone of our company.

Nothing happens without the day-to-day dedication of our invaluable associates.

Whether they are a front-line brand ambassador who represents us each and every day with our residents or a back-of-the-house support team member who ensures we continue to move forward, our associates are our greatest asset.

From our focus on associates’ well-being, health, and safety to our support for a diverse, equitable, and inclusive culture, we treat each other fairly and act with honesty, integrity, and respect.

Nothing is accomplished without the day-to-day dedication of our invaluable teams.

Whether they are a front-line market associate who represents us each and every day with our residents, or a centralized team member who supports the front line and strives to ensure quality and consistency of our work, our associates are our greatest asset.

From our focus on associates’ well-being, health, and safety to our support of a DE&I culture, we treat each other fairly and act with honesty, integrity, and respect.

We believe that diverse, equitable, and inclusive companies make for more innovative, engaged, and happy teams.

Our organization celebrates diversity and cultivates a culture of equity and inclusion.

As of December 31, 2021, women comprise 41% of all associates and 44% of our manager and above population, and people of color comprise 43% of all associates and 24% of our manager and above population.

During the year ended December 31, 2021, 43% of our new hires were female and 45% were people of color.

As of December 31, 2022, women comprise 43% of all associates and 41% of our manager and above population, and people of color co mprise 47% of all associates and 30% of our manager and above population.

During the year ended December 31, 2022, 45% of our new hires were women and 55% were people of color.

We currently have six active Employee Resource Groups (“ERGs”):

Together With Women, founded in 2019;

and The Black Collective, Juntos, GenNEXT, Open Invitation, and Asian Alliance, all founded in 2021.

During 2021, 413 associates were members of at least one ERG.

In 2021, we created a DE&I framework, to be used as a roadmap to guide meaningful progress on our DE&I journey through 2023.

We also launched the iBelong, youBelong Commitment, which unified our approach to creating a greater sense of belonging for all associates.

As of December 31, 2021, 1,042 associates had signed the commitment, symbolizing their intent to support our diversity, equity, and inclusion efforts.

Our Chief Executive Officer joined the CEO Action for Diversity & Inclusion initiative in the fall of 2021 and personally pledged to continue to advance DE&I within our workplace.

The scope of this pledge supports equity for all, including ethnically or racially diverse persons, the LGBTQIA community, people with different abilities, veterans, and women.

Our DE&I stance contributes to our overall business strategy and serves as a catalyst for retaining our associates, recruiting diverse talent, and building beneficial business relationships with key stakeholders.

This business imperative will help us increase our workforce diversity, retain and upskill our talent, and enhance our company’s culture.

In turn, this will advance our standing as an employer of choice and one of the nation’s leading home leasing companies.

In 2021, we were recognized for our commitment to diversity, equity, and inclusion as a Best Company for Diversity an Best Company for Women by Comparably and Top-Rated CEO for Gender Diversity by Fairygodboss.

We value continuous dialogue with our associates.

We launched our continuous listening associate survey tool, Our Family.

Your Voice., in May 2020 and experienced an initial participation rate of 94%, well above the 87% benchmark.

As expected, our first full year participation rate of 84% in 2021 settled closer to the benchmark.

This participation pro vides managers with actionable feedback on several key engagement dimensions.

We believe meaningful actions based on associate feedback gleaned in the monthly survey will continue to result in ongoing high engagement with our associates as evidenced by our strong associate Net Promoter Score of 61, compared to a benchmark of 26.

We prioritize ensuring our associates are recognized for their efforts and feel valued for the work they do.

In 2021, we launched a new recognition program called Because of You , celebrating the impact our associates make on a day-to-day basis and recognizing milestone work anniversaries.

We recognize the value of providing regular development opportunities for our associates and helping them advance their skills and knowledge.

In 2021, we launched a career growth philosophy, a career growth and development framework, and a leadership behaviors model.

Together With Women;

The Black Collective;

Open Invitation;

and Asian Alliance.

As of December 31, 2022, 427 associates were members of at least one ERG.

Our DE&I philosophy contributes to our overall business strategy and serves as a catalyst for retaining our associates, recruiting diverse talent, and building beneficial business relationships with key stakeholders.

This business approach is expected to help increase our workforce diversity, retain and upskill our talent, and enhance our company’s culture.

We expect this to position us as an employer of choice and one of the nation’s leading home leasing companies.

In 2022, we were recognized for our commitment to diversity, equity, and inclusion through several external awards:

Best Company for Diversity and Best CEO for Diversity by Comparably;

and Top Rated CEO for Gender Diversity and Best Company by Fairygodboss.

We value feedback from our associates, and we maintain a continuous listening associate survey tool, Our Family.

We continue to achieve high participation by our associates, with 80% of our associates sharing feedback at least once in 2022.

This tool pro vides managers with actionable feedback on several key engagement dimensions.

We believe meaningful actions based on associate feedback provided by the surveys have resulted, and will continue to result, in ongoing high engagement with our associates as evidenced by our strong associate Net Promoter Score of 60 at the end of 2022, compared to a benchmark of 33.

In 2022, our focus on engagement led to recognition by Comparably for Best Company Culture, Best Company — Dallas, and Best Company Happiness.

We recognize the value of providing regular development opportunities for our associates that improve their capability to succeed in their current roles and achieve career growth to meet their aspirations.

In 2022, we launched Growing People for Success , a fully integrated talent cycle that incorporates our performance and feedback process, career growth and development, and leadership behaviors model.

We also conduct an annual mandatory compliance training campaign and offer a robust catalog of online learning and development videos designed to help associates build their skills.

We are committed to accelerating the development of our leaders through various programs such as our “Leadership Essentials” program, which is designed to build capable and confident leaders that can lead and inspire a diverse workforce in an ever-changing environment.

As part of our Leadership Essentials training and our commitment to DE&I, we include both DE&I and Awareness of Unconscious Bias training for our leaders.

This commitment to leadership development resulted in Invitation Homes being recognized in 2021 as Best Company in Leadership by Comparably.

We believe that competitive compensation and benefits are a key pillar to associate attraction, retention, motivation, and engagement.

In early 2021, as part of Total Value , our holistic approach to total rewards, we established and rolled out a compensation structure to provide consistency, clarity, and transparency around compensation and how each associate’s role fits into the broader organization.

We take a wide variety of steps to ensure the health, safety, and well-being of our associates.

We continue to enhance and improve our health and safety processes to reduce on-the-job injuries and review and monitor our performance monthly.

We were recognized by LinkedIn in 2022 with a Top Companies in Real Estate award, ranking #8 in companies offering real estate career growth.

We are committed to accelerating the development of our leaders through various programs such as “Leadership Essentials,” a program designed to build capable and confident leaders that can lead and inspire a diverse workforce in an ever-changing environment.

In 2022, we launched an immersive six month leadership development program for 25 emerging leaders.

Additionally, we designed and piloted a leadership assessment and development program, aimed at creating a science-based approach to identifying, growing, and retaining our top talent.

Lastly, we brought 150 of our leaders together in 2022 to focus on leadership development, building trust, and alignment with key Invitation Homes priorities.

This commitment to leadership development resulted in Invitation Homes being recognized by Comparably in 2022 as having Best Company Leadership.

We believe that competitive compensation and benefits are key drivers of associate attraction, retention, motivation, and engagement.

Compensation is one component of our Total Value offering for Invitation Homes associates, and we strive to compensate associates fairly and consistently based on market rates for their roles, experience, and how they perform.

As such, in 2022 a pay equity review was conducted by a third party consultant with oversight by our human resources team.

Our results show that we have 100% pay equity in salary for women and men, and compensation received by people of color is, on average, 99% of that received by peers who are not people of color in comparable positions.

We intend to continue monitoring our pay equity practices on an ongoing basis and consider pay equity dynamics when promoting internally and hiring externally.

Achieving and sustaining pay equity is a key focus for us now and in the future.

Another component of our Total Value offering for associates is our holistic wellness program, which is designed to enhance mental, physical, and financial wellbeing.

We also offer a myFlexibility program under which many of our office-based associates have shifted to hybrid work schedules.

Health and safety programs and processes are also vitally important to the wellbeing of our associates, and we conduct monthly safety training for our maintenance associates and a regular driving safety training for our fleet drivers.

We continue to enhance and improve health and safety processes, and we review and monitor our performance monthly to reduce on-the-job injuries.

Our goal is to reduce Occupational Safety and Health Administration recordable incidents each year;

and over the past three years, our workplace safety programs have successfully reduced annual on-the-job injuries from 41 to 37, or 9.8%.

We continue to conduct monthly safety training for our maintenance associates and a regular driving safety training for our fleet drivers covering topics like defensive driving techniques and vehicle condition and safety features.

We regularly update our COVID-19 “Safe Work Playbook” which outline protocols for our offices and associates regarding pandemic-related safety behaviors.

While we have officially re-opened all of our offices to associates, many of our office-based associates continue to work from home under our myFlexibility program launched in the spring of 2021.

however, over the past three years, our annual on-the-job injuries have increased from 40 to 48, or 20%.

This increase is primarily attributable to our return to normal business operations after the COVID-19 pandemic and a 42% increase in the headcount of our operations team over the same period.

We believe it is critically important to maintain a corporate culture that demands integrity and reflects ethical values.

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We maintain a Code of Business Conduct and Ethics (the “Code of Conduct”) that is applicable to all of our directors, officers, and associates.

The Code of Conduct helps guide us as we collaborate to accomplish our goals together,

while holding ourselves individually responsible for our work and accountable for our actions.

The Code of Conduct helps guide us as we collaborate to accomplish our goals together, while holding ourselves individually responsible for our work and accountable for our actions.

Our Vendor Code of Conduct is an extension of our values to our vendors and serves to highlight our commitment to ethical business practices and regulatory compliance.

Being a good neighbor is critical in the communities where we do business.

This includes volunteering in our local communities and contributing dollars to non-profit organizations doing good in our markets.

It also involves the full economic impact of our business on the community, through home renovations completed by local vendors, payment of real estate taxes and HOA fees and dues, and locally purchased goods and services.

We recognize that the vitality of our business is directly linked to the vitality of the communities in which we operate.

We invest in upfront renovations of our homes and maintain them to high standards through timely maintenance services.

As of December 31, 2021, we and our predecessors have invested approximately $2.5 billion in the upfront renovation of homes in our portfolio.

We invested approximately $35,000 per home for upfront renovations completed during the year ended December 31, 2021.

Further, we maintain our homes to high standards through timely maintenance services as well as through our proprietary ProCare service.

We believe that these investments benefit our communities by creating jobs, enhancing neighborhood appearance and livability, and improving the overall quality of life for our residents and their neighbors.

In addition, we believe such investments improve our relationships with local communities and HOAs and enhance our brand recognition and loyalty.

We believe our values of Genuine Care and Standout Citizenship should extend beyond the walls of our offices and drive our desire to be a good neighbor in each of our communities.

In 2021, we launched two major community initiatives.

Step Up, Stand Out encourages students to pursue high-demand and well-paid jobs in the skilled trades and provides job-readiness training to help close the skills gap and broaden access to career opportunities.

We partnered with SkillsUSA for the educational component of this program, which we launched in fall 2021 in Tampa, Florida, and Charlotte, North Carolina, with plans to expand across all 16 of our markets over the next several years.

We also launched our Green Spaces initiative, which is dedicated to the development and improvement of outdoor community spaces in our markets.

One early result of this initiative is Invitation Homes’ three-year partnership to maintain, enhance, and expand the Hawes Trail System throughout Arizona.

We plan to pursue more partnerships like this to continue our investment in the communities where we operate and expand our conservation efforts.

While we have a company-wide community impact mantra of “Go Do Good,” much of our community engagement is locally driven.

We believe in empowering our associates to make an impact in the communities where they work and reside by partnering with local organizations to provide support to those in need.

In addition, each year Invitation Homes associates receive 20 hours of paid time to volunteer in their communities and help their local neighbors.

In 2021, our associates volunteered 13,196 work hours in their local communities.

While we began re-engaging through in-person volunteerism in 2021, a portion of our volunteerism continues to be conducted virtually, as many of our nonprofit partners and local organizations offer virtual opportunities that provide safe social distancing options while still enabling us to make an impact.

The COVID-19 pandemic has changed the lives of our associates, our residents, and our communities.

We are proud of how our team has responded, showing resilience, innovating in real time, and demonstrating the tremendous value of our resident-centric business philosophy and commitment to community.

We value being part of the communities where we do business, and we recognize that the vitality of our business is directly linked to the vitality of the communities in which we operate.

We also believe our business has a positive economic impact on the communities in which we operate, through improved neighborhoods that benefit from our home renovations, the value of our local teams living in and contributing to the local economy, and the payment of real estate taxes and purchase of local goods and services.

We encourage our associates to be good neighbors in their respective communities by partnering with local organizations to provide support to those in need.

We are actively engaged in a broad range of community and philanthropic activities in our markets, contributing funds nationwide and encouraging our associates to be active in their communities by providing each of them 20 hours of paid volunteer time each year.

In 2022, associates volunteered 19,358 hours in their local communities.

Governance and Ethical Business Practices

We strive every day to ensure that our actions result in value for the individuals and organizations that have chosen to invest in our company, and we take that responsibility very seriously.

We believe that ethical business practices and sound governance promote the long-term interests of our shareholders, strengthen Board of Directors and management accountability, and improve our standing as a trusted member of the communities we serve.

We are committed to the principles of good corporate governance and have implemented internal policies and procedures to ensure that our governance practices are best in class and align our interests with those of our shareholders.

We believe that ethical business practices and good governance promote the long-term interests of our stockholders, strengthen Board of Directors and management accountability, and improve our standing as a trusted member of the communities we serve.

We believe it is critically important to maintain a corporate culture that demands integrity and reflects our ethical values.

We are committed to operating at the highest level of ethical standards and serving as a responsible fiduciary for our shareholders.

We are committed to operating at the highest ethical level and serving as a responsible fiduciary for our stockholders.

Everyone who works at or with Invitation Homes should feel confident about our high ethical standards, our honesty, and our integrity.

Our daily decisions are driven by our Code of Conduct posted on our website, which demonstrates our commitment to be a responsible corporate citizen and a good business partner.

The Code of Conduct is supported by

associate conduct policies and programs and reinforced through regular associate training.

We have zero tolerance in relation to illegal or unethical conduct, and this is articulated in our relevant policies, including policies on conflicts of interest, gifts and entertainment, fraud, sanctions, outside activities, political contributions, and bribery and corruption.

Our daily decisions are driven by our Code of Conduct, which demonstrates our commitment to be a responsible corporate citizen and a good business partner.

Each day, we work hard and are committed to delivering on our company’s mission statement — “Together with you, we make a house a home.” In doing so, our actions are guided by our company’s core values:

Unshakeable Integrity, Genuine Care, Continuous Excellence, and Standout Citizenship.

The Code of Conduct helps guide us as we collaborate to accomplish our goals together, while holding ourselves individually responsible for our work and accountable for our actions.

Code of Conduct

Our Code of Conduct is supported by associate conduct policies and programs and reinforced through regular associate training.

In our daily interactions with residents, fellow associates, vendors, suppliers, and other stakeholders, honesty and integrity are essential.

These tenets are articulated in our Code of Conduct, including policies on conflicts of interest, gifts and entertainment, fraud, sanctions, outside activities, political contributions, and bribery and corruption.

Any associate who violates the requirements of the Code of Conduct, or any of our other policies, is subject to disciplinary action up to and including termination.

Reporting Violations and Whistleblower Protection

Our confidential compliance hotline is a critical part of our ethics and compliance program.

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The reports are reviewed with our Audit Committee at meetings throughout the year.

Neither our company, nor any director, officer, employee, contractor, subcontractor, or agent of the company will, directly or indirectly, discharge, demote, suspend, threaten, harass, or in any manner discriminate or retaliate against any person who, in good faith, makes a report or assists in investigating a report.

Our Code of Conduct provides that “neither our company, nor any director, officer, employee, contractor, subcontractor, or agent of the company will, directly or indirectly, discharge, demote, suspend, threaten, harass, or in any manner discriminate or retaliate against any person who, in good faith, makes a report or assists in investigating a report.”

Vendor Practices

We have adopted a Vendor Code of Conduct that extends our values to company vendors and serves to highlight our commitment to ethical business practices, safe labor conditions, respect for human rights, environmental stewardship, and regulatory compliance.

Risk Management

Our Board of Directors and management believe that effective risk management involves our entire corporate governance framework.

Both the Board of Directors and management have key responsibilities in managing risk throughout the Company.

We face various forms of risk in our business ranging from broad economic, housing market, and interest rate risks to more specific factors, such as credit risk related to our residents, re-leasing of properties, and competition for properties.

Our Board of Directors believes that effective risk management involves our entire corporate governance framework.

Both management and the Board of Directors have key responsibilities in managing risk throughout our company.

Our Board of Directors provides overall risk oversight, both directly and through its committees, to help management identify and assess the major risks our company faces and to develop policies and procedures for monitoring and controlling such risks.

Management is responsible for the day-to-day management of risk, including implementation of appropriate risk management strategies and integration of risk management into our decision-making process.

Management is responsible for the day-to-day management of risk, including identification and assessment of material risks, implementation of appropriate risk management strategies, and integration of risk management into our decision-making process.

Members of the Board of Directors regularly meet with members of management and other key associates who advise the directors on areas of enterprise risk, risk mitigation, response strategies, and any incidents that have arisen.

We face various forms of risk in our business ranging from broad economic, including those relating to the ongoing impact of the COVID-19 pandemic, housing market, and interest rate risks, to more specific factors, such as credit risk related to our residents, re-leasing of properties, and competition for properties.

We believe that the systems and processes developed by our experienced executive team, with the strategic counsel and stewardship of our Board of Directors, allow us to effectively monitor, manage, and ultimately mitigate these risks.

We seek to maximize revenue collections through our robust, standardized resident screening process (which includes credit checks, evaluations of household income, and criminal background checks), as well as by utilizing an online resident payment portal, which includes an auto-pay feature, to facilitate the electronic collection of a majority of our rental payments.

We seek to maximize revenue collections through our robust, standardized resident screening process (which includes, among other things, credit checks, evaluations of household income, and criminal background checks), as well as by utilizing an online resident payment portal, which includes an auto-pay feature, to facilitate the electronic collection of a majority of our rental payments.

In addition, we track resident delinquency on a daily basis and assess any late fees promptly in accordance with the terms of our lease (typically between the third and fifth calendar day of the month).

Our operations are also highly dependent upon information systems that support our business processes.

Cyber intrusions could seriously compromise our networks and the information stored therein could be accessed, publicly disclosed, misused, lost, or stolen.

In the face of ever-changing and increasing cyber threats, our Board of Directors is well-positioned to guide management in the development of an effective cybersecurity risk program for our Company.

The Board of Directors or its Audit Committee typically meets no less often than semi-annually with senior information technology associates to discuss recent trends in cyber risks and reviews our strategy to defend our business systems and information against cyber attacks.

The ongoing COVID-19 pandemic continues to present material uncertainty and risk with respect to our business and results of operations.

As such, we are closely monitoring the impact of the pandemic on all aspects of our business, including operating, investment management, and capital markets activities, and will continue to actively manage our response in collaboration with our residents and business partners.

The extent to which the COVID-19 pandemic ultimately impacts our operations depends on ongoing developments, which remain highly uncertain, including the scope, duration, and severity of COVID-19 and its variants, the availability, distribution, and efficacy of vaccines and therapeutic drugs, and the direct and indirect economic effects of the pandemic, containment measures, monetary and/or fiscal policies implemented to provide support or relief to businesses and/or residents, and other government, regulatory, and/or legislative measures.

For more information on risks related to COVID-19, see Part I.

“Risk Factors — Risks Related to Our Business and Industry — Our business, results of operations, financial condition, and cash flows may be adversely affected by pandemics and outbreaks of infectious disease, particularly the ongoing COVID-19 pandemic .”

Climate change continues to attract considerable public, political, and scientific attention.

Experiencing or addressing the various physical, regulatory, and adaptation/transition risks of climate change may affect our profitability.

For additional information about our risks related to climate change, see Part II.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations — Overview.”

See “ — Systems and Technology” for information about cybersecurity.

We maintain property, casualty, and corporate-level insurance coverage related to our business, including general liability, business auto, umbrella, commercial crime, directors’ and officers’ liability, fiduciary liability, cyber liability, employment practices liability, and workers’ compensation insurance.

We believe the policy specifications and insured limits under our insurance program are appropriate and adequate for our business and properties given the relative risk of loss, the cost of the coverage, and industry practice.

We believe the policy specifications and insured limits under our insurance program are appropriate and adequate for our business and properties given the relative risk of loss, the

cost of the coverage, and industry practice.

However, our insurance coverage is subject to deductibles and coverage exclusions, and we are self-insured up to the amount of such deductibles and exclusions.

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From our website, which is accessible from mobile devices, prospective residents can browse homes available for lease, take virtual tours, request additional information, and apply to lease a specific home.

Through online resident portals and native mobile applications, existing residents can set up automatic payments and request maintenance service.

To ensure we remain the first choice when leasing a home, in June 2022, we launched the industry’s first branded mobile application.

Prospective residents can seamlessly search for a home and schedule a tour, and existing residents can pay rent and request maintenance service all from the app.

Our associates can support and manage resident requests for critical functions such as leasing and maintenance through easy-to-use digital tools.

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“Risk Factors — Risks Related to our Business and Industry — Security breaches and other disruptions could compromise our information systems and expose us to liability, which would cause our business and reputation to suffer.”

Cybersecurity — Using Technology to Enhance Virtual Safety

Our operations are highly dependent upon information systems that support our business processes.

Cyber intrusions could seriously compromise our networks and the information stored therein could be accessed, publicly disclosed, misused, lost, or stolen.

As such, we are committed to maintaining a secure and safe technology environment.

We employ a multi-layered security model that leverages risk-based controls with a focus on protecting our residents' and associates’ data.

We follow a cloud-first approach to enable efficient scaling, robust business continuity, access to the latest innovations, and a reduction in our carbon footprint.

Security features and services are regularly enhanced to address both emerging threats and evolving privacy laws.

We also partner with industry leading third parties for regular security audits.

These audits ensure we are always view cybersecurity with a holistic perspective.

We maintain a cybersecurity and information security training and compliance program that includes annual information security training for all associates, as well as additional role-specific information security training.

In addition to annual training, we disseminate security awareness articles periodically throughout the year and conduct regular phishing exercises.

As a backstop to our strong information security programs, policies and procedures, we purchase a cybersecurity risk insurance policy that would defray the costs of an information security breach, if we were to experience one.

We face competition from different sources in each of our two primary activities:

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Our primary competitors in acquiring portfolios include large and small private equity investors, public and private REITs, and other sizable private institutional investors.

These same competitors may also compete with us for residents.

These same competitors may also compete with us for

Competition may increase the prices for properties that we would like to purchase, reduce the amount of rent we may charge for our properties, reduce the occupancy of our portfolio, and adversely impact our ability to achieve attractive total returns.

However, we believe that our acquisition platform, our extensive in-market property operations infrastructure, and local expertise in our markets provide us with competitive advantages.

Inflation primarily impacts our results of operations as a result of increased repair and maintenance and other costs and wage pressures.

Inflation could also impact our cost of capital as a result of changing interest rates on variable rate debt that is not hedged or if our debt instruments are refinanced in a high-inflation environment.

Our resident leases typically have a term of one to two years, which generally enables us to compensate for inflationary effects by increasing rents on our homes to current market rates.

Although an extreme or sustained escalation in costs could have a negative impact on our residents and their ability to absorb rent increases, we do not believe this had a material impact on our results of operations for the year ended December 31, 2022.

Our business and related operating results have been, and we believe will continue to be, impacted by seasonal factors throughout the year.

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Broker Licensure

Our internal brokerages are subject to numerous federal, state, and local laws and regulations that govern the licensure of real estate brokers and affiliate brokers and set forth standards for, and prohibitions on, the conduct of real estate brokers.

Such standards and prohibitions include, among others, those relating to fiduciary and agency duties, administration of trust funds, collection of commissions, and advertising and consumer disclosures, as well as compliance with federal, state, and local laws and programs for providing housing to low-income families.

compliance with federal, state, and local laws and programs for providing housing to low-income families.

Under applicable state law, we generally have a duty to supervise and are responsible for the conduct of our internal brokerages.

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The CODM utilizes net operating income (“NOI”) as the primary measure to evaluate performance of the total portfolio.

The aggregation of individual homes constitutes the total portfolio.

Decisions regarding acquisitions and dispositions of homes are made at the individual home level with a focus on accretive growth in high-growth locations where we have greater scale and density.

REIT Qualification

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For example, financial and other material information regarding our company is routinely posted on and accessible at INVH.com.

Accordingly, investors should monitor the website, in addition to following our press releases, SEC filings, and public conference calls and webcasts.

Accordingly, investors should monitor the website, in addition to following our press releases, SEC filings, and public

conference calls and webcasts.

In addition, you may automatically receive email alerts and other information about Invitation Homes when you enroll your email address by visiting the Email Notification section at INVH.com under the Investor Resources tab.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business