{ "docId": "019dd923-622b-71dc-a6dd-9861888477dc", "docSlug": "38695aa5828e", "documentTitle": "D.R. Horton and Invitation Homes (DHI/INVH)", "authorId": "26_Land_and_Buildings", "authorName": "Jonathan Litt", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2020-05-19 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 3, "pageCount": 5, "prevPage": 2, "nextPage": 4, "slideType": "executive_summary", "function": "summarize", "density": "overcrowded", "nDataPoints": 5, "notes": "The slide uses a mix of CEO quotes, survey data, and market metrics to argue for a structural shift in housing preferences.", "elementsJson": [ "paragraph", "line_chart", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6dd-9861888477dc/3", "deckHref": "/decks/019dd923-622b-71dc-a6dd-9861888477dc", "deckJsonHref": "/decks/019dd923-622b-71dc-a6dd-9861888477dc.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6dd-9861888477dc#slide-3", "components": [ { "bbox": null, "kind": "callout", "text": "Mortgage purchase applications for new and existing homes have risen by 33% since their recent trough, with early data showing the entry level housing market generating the best performance.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-fb90-708a-8677-d7ec4395f5f2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.42, "x": 0.48, "y": 0.72 }, "kind": "chart", "text": "Mortgage Purchase Applications Improving Rapidly", "attrs": null, "subkind": "line", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b4260622-5c32-4e83-b9e1-2a11d25ad4e9", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Mortgage Purchase Applications: 33%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-fb90-708a-8677-de911b0c126f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.1, "y": 0.25 }, "kind": "paragraph", "text": "And the picture is very similar in the single family for rent front, with Dallas Tanner, CEO of INVH saying, “Shelter-in-place has not impacted our ability to lease homes...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "97e6b80b-5d20-447b-b107-0759f9e1a9b5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.8, "x": 0.1, "y": 0.38 }, "kind": "paragraph", "text": "Work from home and stay at home orders have made city dwellers confined to small apartments less tolerant of lack of space and high population density...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ac7177c4-0f90-4fbb-8b56-3cc382fa178e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.1, "y": 0.76 }, "kind": "paragraph", "text": "Single-family home purchases and rentals in recent weeks have accelerated across the country under stay-at-home orders...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d775df79-d08d-4ba1-b2d0-891a25526b77", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.8, "x": 0.1, "y": 0.09 }, "kind": "paragraph", "text": "Further, single family housing demand has been picking up momentum on the home building side as detailed by Steven J. Hilton, CEO of Meritage Homes (NYSE: MTH), “Sales momentum increased during the last two weeks of April...", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d8d1ddb2-9e57-4d88-997f-3d27f4bf56fd", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"Sales momentum increased during the last two weeks of April. This increase in traffic and orders has carried over into May so we expect this month’s orders could be in-line with last May.\" — Steven J. Hilton, CEO of Meritage Homes (NYSE: MTH). \"Shelter-in-place has not impacted our ability to lease homes. In fact, residents have been moving into our portfolio at a similar rate to last year and at a greater rate than they have been moving out.\" — Dallas Tanner, CEO of INVH. \"we expect something close to an exodus from these really large cities where housing is so expensive...search traffic has already shifted on our website.\" — Redfin", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-fb90-708a-8677-d8142abae224", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.48, "y": 0.97 }, "kind": "source-note", "text": "Source: Mortgage Bankers Association", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a2ad21f9-a932-4919-840d-e3790d503459", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.1, "y": 0.34 }, "kind": "title", "text": "COVID-19 is Accelerating Trend of Leaving Cities Behind", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0507b1c9-0821-42fa-8b6c-81be9053253e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.8, "x": 0.1, "y": 0.72 }, "kind": "title", "text": "Housing is Already Seeing the Benefits of a Post-COVID-19 World", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c457fc45-93c8-4b43-9558-e8877c19cb59", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 3, "from": 2, "beatId": "14941567-b9bf-4759-ac28-064510933ca0", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate (Make it worse)", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The document highlights the acceleration of the trend of leaving cities behind", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 5, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "583f8469-dca5-4d7d-811e-dd3a24a87ede", "evidence": "The document implies that investors who fail to act on the shift in housing preferences may miss out on opportunities", "position": 0, "objective": "Highlighting the cost of inaction for investors in the housing market", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }