Invitation Homes Inc. (NYSE:INVH) Q3 2023 Earnings Call Transcript

I think you could see us continue to try to experiment a little bit on townhome-type product. But remember, square footage matters and amenities matter in those situations. We certainly aren’t an apartment investment — an apartment investor today doing 800 to 1,000 square foot units. That’s not our business. We want to be 1,500, 1,600, 1,700 square feet minimum and preferably a little bit bigger than that. That lends to the demographic that we think we cater to the best. In terms of your question around fee management, look, I think you’ve seen us as a company over the first decade prove out a couple of things. One, we have an ability to take on scale in a meaningful way time and time again and integrate that into our platform and see margin expansion in our numbers.

We’ve done that last quarter with the 2,000 units we added with that trade meaningfully. It will add to additional scale and density and what we believe will be margin expansion over time. I think as we start to consider things around — we get the question around property management and as we’ve expanded our JV businesses, we want to look for things that are accretive, that are going to give us scale but that won’t take away from the disciplined approach we already have to our business. And so if it has scale, if it’s meaningful and if it can actually lend to our own operating margins in a way that we think that our business becomes more profitable, especially in a capital-light way, those are things we’re going to look at in the future and continue to evaluate.

So focused on controlling the controllables right now within our business. I feel like Charles talked about this. Our business from a controllable perspective is running really, really well. I think as we get through some of this near-term noise and what we call kind of the pandemic transitory winds of property tax and bad debt, our business is set up for success for the future. And we feel really good about where we are.

Operator: This completes our question-and-answer session. I would now like to turn the conference back over to Dallas Tanner for any closing remarks.

Dallas Tanner: We want to thank everyone again for joining us today. And we’re going to look forward to seeing many of you again in a couple of weeks at Nareit. Thanks again.

Operator: The conference has now concluded. You may now disconnect.