At Tricon Residential, we believe in the power of imagination and our housing can unlock a life full of possibilities. We build amazing things together. But it’s not the bricks and mortar that define us. What makes us is the way we think, collaborate, innovate, and transform. At the foundation of each build is our personal values. Empowerment for each and every team member to improve our residents’ lives. Together we create what’s extraordinary through inspired experiences. An insatiable desire to help shape the communities we belong. We believe future generations will benefit from our commitment to health, wellness, culture, and the arts, to help us and our residents live well. Our imagination has launched us into the expansive realm of possible. Embracing technology makes us better. Elevates us to the beyond and helps us achieve the never before. A freedom gift for our residents. You might not see this in the bricks and mortar, but it is there, in everything we build. Powerful internal culture, real community relationships, meaningful connections, this is Tricon Residential. Hello, everyone, welcome to Tricon Residential's Annual Investor Analyst Day, delivered to you virtually for the first time. I'm Wojtek Nowak, Managing Director of Capital Markets. We're excited to share our story with you today. Typically, we host a small group of investors and analysts for a live event. With the wonders of virtual conferencing, we're able to accommodate over 100 people today, including 65 investors and 30 sell-side and equity research participants. We're very happy to have you all here. Before we start, I want to remind you that our remarks and answers to your questions may contain forward-looking statements and information which is subject to risks and uncertainties that may cause actual events or results to differ materially. We also want to make this interactive for everyone. Please note that you have a live chat function on your screen. You can use that to ask questions during the presentations, which we'll address at the end of each session. Without further ado, I'm going to pass it over to Gary Berman, President and CEO of Tricon Residential. Thank you, Wojtek. Hope everybody is staying safe and sane. We look forward to seeing you on the other side. We're delighted that you're here with us today. We're going to get going on page two, and for those of you that are new to our story, we like to describe Tricon as a rental housing company that is largely focused on the Sun Belt and the middle-market demographic. We own and operate over 30,000 homes, two-thirds split to single-family, one-third to multi-family, and we manage it with an integrated tech-enabled operating platform. As a lot of you know, we've now completed this great transformation to a rental housing company. Once upon a time, we were focused on for-sale housing. We were also an asset allocator. Today, we're a fully integrated owner, operator, and developer of rental housing. We transformed our model to really make sure that our business was more defensive, more resilient. It could perform well in good times and in bad times. What we did not foresee was the pandemic. One investor actually may be on this call alleged that we actually created the pandemic, and we responded, "Actually, I think you're confusing us with Amazon." Jokes aside, we've been very fortunate because we're a real beneficiary of this pandemic, and what it's done is unleashed or really accelerated. We kind of think of the pandemic as an accelerant. It has accelerated a great migration trend, de-urbanization, de-densification, and powerful nesting trends, which are creating significant demand for our product. You can see it across the board in our single-family business, even in markets that have been ravished by this pandemic, energy or tourism markets, we're still seeing re-leasing spreads of 5% in those markets and 10% across the board. That's how much demand has been created in this pandemic for our single-family rental business. Now with work-from-home trends, it's now socially acceptable, obviously, to use video teleconferencing. If you can work anywhere, why not work in the U.S. Sun Belt where it's more affordable, where the taxes are lower, where the weather's better? When employers and employees make that decision to move to leave New York for Florida or Chicago for Texas or L.A., let's say, for Phoenix or Austin, those aren't quarterly moves. Those are long-term permanent moves, and we believe we're going to have tailwinds for a long, long time. If you think about it, the 2010 was probably a lost decade for housing. It's quite possible that the 2020s are a period of reclamation where housing's going to regain its swagger and its prominence in the U.S. economy. We all know that home builders are going to do well in this environment, but they're limited into what they build. With the supply-demand imbalance, it doesn't take a genius to figure out that rental housing is going to do extremely well as we will get the benefit of that supply and demand imbalance with higher home prices and rent inflation. We'll be responsible about the way we manage that rent inflation, but the point is that we have tailwinds, and we could have a great decade ahead. This is not a one-year play. We've got exciting fundamentals and technicals behind our story, but this is much more likely a 10-year opportunity. Charlotte, let's flip over to slide three. Thank you. This slide shows our profile. I want to focus on the right side of the screen. Our market cap, now at $ 2.3 billion, is approaching $3 billion. In fact, on a fully diluted basis, it is about $ 3 billion. As we approach that level, we're having more and more conversations with large cap Canadian investors who want to get into the stock or the story, and that is going to be a catalyst for evaluation. Our dividend right now, $ 0.07 a quarter, is about a 2.3% yield. We recognize that our payout ratio, our AFFO payout ratio, is one of the lowest in the industry, and we've got great growth trajectory in AFFO as well. Now is not the right time to increase our dividend. We believe in increasing or paying rent to shareholders over time. We will increase that dividend over time, particularly as the cash flow continues to grow. Right now, the focus for Tricon is on growth and on deleveraging. We're really proud of our ability to grow our book value per share. That's 18% annum since 2012. Our stock price has not kept up. We had a good year last year. We've gotten off to a great start. We've broken through that technical barrier finally. We couldn't be happier for our long-term patient shareholders. We want to make you a lot of money. There will be a convergence between where our stock price should be and our book value per share. Let's move over to slide four. We often get asked, why do we have industry-leading operating metrics in single-family rental? The answer is, really, there's three reasons for it. One is operational excellence. It's our tech-enabled operating platform. The second is our people and our culture, the third is our investment growth strategy and our use of strategic or third-party capital. We call these our pillars of excellence, that's how we're going to organize today's presentation. There's three different pillars or sections, as Wojtek said, at the end of each section or pillar, there will be an opportunity for Q&A. If you do have questions, as a reminder, use the chat function. Wojtek will take those questions will ask a number of the live presenters at the end of each pillar or section. Let's move on to slide five. I recognize we're in the pandemic. We're tethered to our desks or our homes. We wanted to take full advantage of the technology and democratize Investor Day. Rather than you hear from me or Wiss am or Wojtek yet again, you're going to have an opportunity to hear from 20 of our different leaders and really get a deep dive into our culture and our tech-enabled operating platform. We're really excited for you to meet others at Tricon. This is a group of people that together, as we like to say, are reimagining rental housing and are using proptech at every step of the way to make us more and more efficient. On to slide six. Key takeaways. The first thing I want to say, what we want to leave you with today is that this is not an earnings call. We're not going to do any analysis of our earnings. This is really what is driving Tricon over the long term. How do we create long-term value for our shareholders? The first thing we would encourage you to do is not to think of us as a real estate company in the traditional sense. Single-family rental, which is 70% of our assets, is where we're going to allocate the vast majority of our capital going forward. It's an extremely intensive operating business, and it's reliant on a tech-enabled operating platform. The more sophisticated that platform, the better service we can provide our residents and the higher margin we could drive for our investors. Our culture, our people-centric, innovative culture is our secret sauce, and it's not easily replicated. Under one roof, we've put together capital and ideas and people technology. If you want to know what it's like to work at Tricon, think about a marriage between real estate private equity and a tech startup. The last thing we want to leave with you is that this market for housing is a mess. If you look at the market capitalization of existing U.S. housing stock, it's over $30 trillion today. That is the size of the Chinese and U.S. economies combined in terms of GDP. Bitcoin, as an example, has a market cap of $600 billion. This is a colossal opportunity that we're going to be able to take advantage over the long term. We've always been capital constrained, not opportunity constrained. The next six months for us are going to be the most prolific in our 33-year history. We're going to raise a significant amount of private capital in relation to our size. We're going to be less capital constrained, and we're going to be able to take advantage of tremendous opportunities over many, many years. We could be buying homes between a 5%-6% cap rate all day long. Let's move on to slide seven. We're going to do a deeper dive into our technology, our proptech. It permeates every facet of our business. This is a business that involves millions of different tasks that need to be coordinated, and you need to do that with technology. I'm going to whet your appetite here with a summary, and then we're going to get deeper into it. Our acquisition process for single-family rental is automated. We use our own proprietary platform called TriAd to screen millions of homes on the MLS based on a 90-point underwriting criteria, and if it fits the box, our buy box, we can submit an offer in minutes. Our customer acquisition process is also automated. We use search engine optimization to drive prospective residents from different Internet listing sites to our website. If they're interested in our home, we can convert them quickly with 3D showings, self-tour technology, lead scoring, and then we can qualify them virtually using statistical analysis and move them in virtually, all with technology. In terms of repairs and maintenance, we have an app called TriForce, and it basically is used for renovations, turns, and now maintenance. We use TriForce to automate workflows, to standardize scope, and to really share data dynamically between the field and our centralized operation. In our call center, we're introducing Intelligent Virtual Agents, IVA. That's going to allow us to automate intake for leasing and soon maintenance and allow our call center to focus on more higher value work. Such as ancillary revenues. In our asset management group, we use revenue optimization platform to balance or look at the trade-off between raising rents, occupancy, and days on market. We also use our 3D mapping technology to do asset capture, so we can catalog all the physical components in our home and determine what we're going to need to spend on a regular basis in terms of CapEx. Technology's being used in every facet of our business to make us more and more efficient. Let's move on to slide eight. ESG or sustainability is also integrated into the company. It permeates every facet of what we do. It's not a check the box item for us. It informs every decision and action that we do. We have been doing this all along, we just haven't documented it, and we haven't got around to document it until recently. Last year, we put out a roadmap. In March, we're going to be releasing our first annual report, which is really exciting. You're going to hear more about ESG today. One thing I do want to say is after the summer and the senseless murder of George Floyd, I feel that you, the investor community, gave us permission to really focus more on social factors. We think those are incredibly important. Our focus on our people and on our residents, we believe is the most important thing to driving shareholder value. Environmental factors are extremely important as well. Obviously, we'd love to get to the point where we have net zero homes. What we believe really drives value is that when we can take care of our own team so they can go above and beyond to take care of our residents. When they do, our residents feel more fulfilled. They're going to stay in our homes longer, they're going to treat them like their own, and they're going to refer us to other customers. That drives value for the shareholders. Couple of things we're really proud of. First of all, my father and our Executive Chairman, David, introduced a minimum living wage. Minimum living wage at Tricon means all our frontline workers earning a minimum of $17.50 per hour, so they can live with dignity and have a little bit of money left over for unseen expenses or to plan for retirement. We also signed the BlackNorth CEO Pledge, where we're committing to combat anti-Black systemic racism, and also hit diversity thresholds. For our residents, we've doubled the size of our resident hardship fund. As you know, we continue to self-govern on rent renewals. We are sympathetic to the way they're handling and dealing with the pandemic. ESG priority is extremely important from our perspective. You're going to hear more about that, and we're going to weave that through that presentation. Look, the last thing I'd like to say here before I hand it over is we'd love to go back to a live Investor Day. I know a lot of you are trapped right now in the Northeast. How good would it be to be in Orlando right now, or Phoenix, or maybe even Orange County? Speaking of Orange County, I want to pass on the call now to our very cool, calm, and collected COO, Kevin Baldridge. Kevin, over to you. Thank you very much, Gary. Yeah, you guys are welcome to Orange County anytime. I'm going to moderate today the operational excellence segment of our presentation. For those of you who have followed our company, I'm sure you've heard about how important culture is to our organization. Gary just spoke about it. That significance of culture has remained steadfast and is unwavering over the years, and is central to everything we do and every decision we make. As a reminder, our culture really centers around service. Service to each other, and then purposely cascades to serving our residents. There are two qualities or values that when combined together, I think really makes us unique in our space. One is that we serve one another and our residents for the purity of lifting others and bettering their lives, period. That is the purpose. Because of the purity of purpose, as Gary was talking about, the byproduct is our residents end up taking care of the business. They stay with us longer, they recommend people to live with us, they treat our houses as if they were their own homes. Really important. It's a differentiator. The second aspect is our penchant to engage technology to improve and expand our service levels to our customers. You're about to hear from a number of our leaders how they are using technology to push new boundaries and pioneer new ideas that will change the entire residential rental experience. I suspect the industry as well. If you go to slide 10, the proof is in the pudding. As one can see in the performance metrics, our single-family rental business, which represents over two-thirds of our proportionate balance sheet exposure. Our same-home NOI growth has been above 5% over the past six quarters, most recently coming in at 6.3%. During the middle of an unprecedented pandemic. Incredible results. Our same-home NOI margin has consistently increased throughout these periods through a combination of strong blended rent growth and cost control. Our physical occupancy has grown and remains high, while our turnover is the lowest in the industry. It's a testament to the strong demand for our homes by serving them well. Our leaders are now going to cover three topics. First, our continued focus on our residents. Second, the opportunities for revenue growth. Third, our commitment to expense containment. With that, I'm going to pass the presentation over to Nicole Conniff and Dawn Dalton, who will kick off this segment of our resident focus. Hi, I'm Nicole Conniff. I am the Vice President of Marketing for Tricon Residential. I'm excited to be here today to share with you some insights into our customer and into our marketing and leasing efforts. At Tricon Residential, we benefit from being able to leverage a database of customer information that provides insights that helps us to understand and predict our residents' behavior. These insights with our cutting-edge CRM technology, our marketing automation platform, and our team of industry experienced professionals helps us to be the most effective and most cost-effective in the industry. Here's a quick snapshot of our outstanding customer demographics. Our demographics compare favorably with the U.S. averages. Our customers' average household income is $85,000. It's higher than the national average. More than a third of our renters are married, and about half have children and half have pets. Our average age of our customer is 38, which is on par with the average age of an American, and our rent-to-income ratio of 22.6 is considerably more favorable than our industry average of 30%. Most of our residents work in recession-resistant industries such as health services and education, and many say that they choose us because of the space that we offer. This is just more evidence of the long-term viability of the product and industry we serve. In order to ensure a great match between a quality resident and one of our Tricon Residential homes, we leverage two different tools, a behavior lead scoring model and a credit scoring tool. Our lead scoring model evaluates behaviors of our customers from the moment that they make first contact with us, and it helps us to segment our leads and development treatment protocols to encourage lead conversion. At the time of an application submission, we actually use the CoreLogic model, which analyzes the renter's credit worthiness. It's using a screening model based on a quantitative decision science that looks at 26 points of a person's credit and payment history to determine if we're going to approve them, approve them with conditions, or decline them. Tricon's approval model, we target the top 30% of the population, which means that you would have a score of about 540. Our average CoreLogic score for the past two years has been just above a 600 score, which is very strong. Our strategic efforts really have resulted in explosive growth in our leasing volume, our conversion rates, our web traffic, virtually in every metric. We focus very heavily on the customer life cycle, and we leverage technology and consumer insights to guide all of our prospects through to lease conversion. In our lead acquisition process, we have leveraged behavioral targeting in our advertising to allow us to acquire a prospect who's more likely to convert, and it allows us to maximize and optimize our media spend. We've leveraged technology in our self-showings to allow people to see the homes at their own time, and it also provides an opportunity for more data capture. Our customer segmentation in our lead management process have been very fruitful as it relates to the lead scoring process, and we get information to people at the time that they're most receptive to our messages. As we look at our lead funnel, we can see that we're trying to optimize the incidences that we go through in order to convert somebody to a lease. We look at website traffic, we look at form fills on all of our websites, we look at showings of our homes, applications, and leases, and we're constantly trying to optimize that and innovate in ways to make it even more efficient. Sometimes it's hard to see growth when you just look at a short period of time. If you look over five years, there's been such tremendous and positive growth with our website traffic based upon our much more sophisticated digital advertising efforts. A huge increase into the amount of people who we can show into our homes, largely fueled by our new technologies related to the self-show. Our gross leases have increased because of our portfolio size and the demand for our products. Even with this explosive growth and all these positive metrics, we are working very hard to stay efficient. One way to look at that is the number of leasing agents we employ. This number has not changed. It's remained relatively flat in the last five years, which we're really excited about. Although this last year has been challenging, living through this pandemic, Tricon has performed very well with interest in our homes, and we've had a very solid leasing performance. As we look at our leasing volume, our conversion rates, our outstanding demographics, and the quality of homes, and our strategic approach to lead acquisition, lead management, and retention, these are among many reasons why we should all be really optimistic for Tricon Residential short-term and long-term growth and prospects for success, as well as significant positive returns in investment. Thank you. Thank you very much. My name is Dawn Dalton, Vice President of Business Systems at Tricon Residential. Today, I'll start by showing a video that demonstrates our Intelligent Virtual Agent and Smart Home technology. Now you can simplify the rental home shopping experience by taking the Tricon Residential self-tour at your convenience. Thank you for calling Tricon Residential. In order to keep our promises with you, all calls will be recorded. Welcome back, Dawn, in a few words, please tell me what you're calling about. You can say things like home information, apartment information, schedule a tour, maintenance requests, make a payment, website support, or something else. Schedule a tour. You said you'd like to tour one of our homes, correct? Yes. Okay. Are you inquiring about the home at 5156 Heritage Oaks Court in Powder Springs, Georgia? Yeah. Thank you for confirming the address. One moment while I look up some account information. I see that this home is still available. It's a four-bedroom, two-bath, renting at $ 1,899 per month. Would you like to tour this home? Yes. Okay. Would you like to take a self-tour? Yes. Thank you. I'll text you a link to the self-tour registration as well as the rental application so you can get started. I see the number you're calling from ends in four, one, three, seven. Is that where you'd like the text sent? Yes. Great. You should receive the text in just a moment. Is there anything else I can help you with today? No. Thank you for calling Tricon Residential. Have a great day. When you arrive for your tour, walk up to the front door and click start tour from the email or text you received after scheduling your tour. The system will verify that you are in front of the home you registered to tour. Click Take Photo to take a selfie. Once the system verifies your identity, the front door will automatically unlock for your self-tour. You can now tour the home at your leisure. When leaving the home, press the check mark button located on the front door's keypad. Tricon Residential. Great. Let's start by jumping into our Intelligent Virtual Agent, also known as IVA. What's really powerful about this technology is that it allows our residents to contact us seven days a week. We anticipate roughly a 60/40 split, meaning that 60% of our call volume will be routed to a human, and the remaining 40% will be routed through the machine. We're the first single-family homes company to have IVA implemented, and we're very proud of that. For those of you who are familiar with AI-driven contact center solutions, particularly in property management, you might know that most of the vendors only cover the leasing aspect of the business. The vendor we selected takes a holistic approach to IVA, which allows us to achieve the subsequent phases we've outlined. IVA is just one example of how Tricon is focused on process. It's going to allow us to scale our business, maintain superior customer support without having to exponentially grow the size of our service center. Next, I want to jump into maintenance. In order to make IVA possible for maintenance intake, we had to implement decision trees that provide specific outcomes. There are only four to five questions that are asked in each unique decision tree, they result in 600 algorithmic outcomes, which allows us to make decisions. This project was in process for about two years, building out these decision trees was absolutely required to automate it through IVA. It provides a consistent intake approach for our maintenance triage and allows us enhanced reporting opportunities to truly understand the issues that are being presented. On top of those decision trees, we're able to implement even more logic-based decisions, such as weather patterns, to dispatch the work properly the first time, ultimately reducing the time to complete. Let's dive a little bit into Smart Home. Currently, one-third of our portfolio is Smart Home enabled, with plans to achieve 50% by end of year. Being Smart Home ready allows us to truly embrace the IoT industry. Most renters expect some form of IoT devices in their homes these days, and we're happy to be able to deliver that. Smart Home technology truly connects our portfolio, allowing us to manage our assets at scale and making us data rich so we can do things like preventative maintenance while also enhancing the lives of our residents. Finally, I want to touch a bit on smart scheduling. Tricon deployed our fleet management system in quarter four of 2019. We partnered with Route4Me, which is a software that optimizes travel routes, and we have an estimated cost savings of 15%. We have a dedicated team here at Tricon who strategically develop the route optimization program through analytics. They're constantly watching this program and improving it daily. Tricon has 176 vehicles, and our teams drive 700,000 miles per quarter. This translates into real savings, both financially and environmentally as a part of our ESG commitment. Thank you. Thank you very much, Dawn and Nicole. That was great. As you've just seen, our teams have been able to engage and apply technology to not only make us more efficient and acquire technology. Now I'm going to turn over the presentation to Matt Trombley and Jeff Peterson to talk about our opportunities for further rent growth. Hi, I'm Matt Trombley, and I'm a Senior Revenue Manager. Despite all the challenges of 2020, Tricon was able to successfully shift our strategy to a bias towards occupancy and still maintain over 5% blended rent growth. Lower turnover and strong market demand have also contributed to loss to lease, which provides embedded rent growth opportunity in the portfolio. In early 2020, to build occupancy in anticipation of impact from the pandemic, Tricon focused on retention with heavily moderated renewal rates and an increased emphasis on lease expiration management. Fortunately, strong demand and incremental enhancements in revenue management have allowed Tricon to see outsized new lease rent growth and offset lower renewal rent growth. More specifically, in early 2020, revenue management shifted focus to pre-leasing to execute our occupancy bias strategy. With a focus on occupancy and pause in acquisitions, revenue management, marketing, and operations, in conjunction with our call center, had to focus on pre-leasing to deliver increased occupancy. This added focus allowed us to optimize pricing to find market rent on each home using real-time demand indicators. The result was a dramatic increase in pre-leasing, which successfully boosted occupancy. Process automation was also a major factor of Tricon's success in 2020. Using bots to input pricing centrally enables increased frequency and accuracy of price changes. Most importantly, process automation reduces busy work for our teams, which allows them to focus on value-add follow-up and application support, resulting in less vacancy. 2020 results were positive. With moderated renewal offers, we saw lower turnover and turn expenses. When homes did vacate, we were able to capture outsized new lease rent growth to maintain our strong historical blended rent growth. Additionally, we maintained our strategic occupancy bias to offset potential future delinquency from COVID-19. Looking forward, we continue to see very strong demand for SFR product, driven by historically low interest rates and flight to the suburbs, which continues to constrain supply. As the market remains very tight, we estimate there is an embedded loss to lease in the portfolio of 7%-9%. This provides an additional opportunity to drive approximately $30 million in additional annual rental revenue as we capture loss to lease in the near term. Thanks. Hello, my name's Jeff Peterson. I am Director of Asset Management. My role requires me to spend a significant amount of my time focused on our robust ancillary revenue pipeline. We prioritize the initiatives that are in our pipeline by those that create the most value for our residents. The last thing we want to do is bring forth something that our residents are going to see as useless. We put these initiatives into two different categories. The first are those that assist our residents in meeting their mandatory lease obligations, like renters insurance, and others that are optional but enhance the rental living experience, like a telecommunications concierge that we'll be bringing forth here in 2021. When we take a look at where ancillary revenue was just a short period of time ago to where it is today, where we see it going in the future, there's a few key drivers that are really going to get us to where we want to go. One of those is Smart Home that we began installing into our new acquisitions and our turns in 2020. We expect by the end of 2021, we'll have the technology in more than 50% of our homes. This was crucial during COVID-19 because it allowed us to do contactless showings through the keyless entry technology to maintain strong occupancy rates. From an ancillary revenue perspective, what this means is that we're earning approximately $8 per month per home that this is installed into. Another key initiative is renters insurance. This is one that we've had in place for some time, but we are revamping the program to bring forth a product that's going to offer more comprehensive coverage to our residents at a lower cost and drive significant value for Tricon. As we look into the future, we have several initiatives that have an ESG focus, like solar panels and air filters. This is going to greatly reduce the energy that's consumed in our Tricon homes and help our residents to lower their monthly energy bills. When we put this all together, we see an opportunity to grow ancillary revenue approximately another $7 million from where we are today. We're very excited about where we see ancillary revenue headed here in the near future. Thank you. Thank you very much, Matt and Jeff. As they pointed out, we still have ample potential to grow revenue by harnessing our loss to lease and bringing ancillary services to our residents. We have the enviable position of being the last mile in delivering products and services to our customers. As such, we are in the early stages of building out a program that takes advantage of that, as Jeff was pointing out. Now I'm going to turn over the mic to Alan O'Brien and Connor Doss to talk about our ongoing commitment to expense containment. Hi, my name is Alan O'Brien. I am the Head of Property Operations for Tricon Residential. We are approaching our nine-year anniversary of our first home acquisition. Back then, the biggest question I received from investors and bankers was around cost to maintain. I am very proud to say over the last three to five years, we have significantly reduced our cost to maintain. I believe in 2021, we will achieve similar metrics as 2020, even offsetting the inflationary costs coming towards us through the supply chain. The biggest components of the cost to maintain reduction are one, we have the industry-leading metrics on turnover. We implemented CoreLogic's platform to screen our residents to make sure we have our best residents moving into our homes in 2017, which we are seeing great dividends from. Additionally, our people are focused on our residents and making sure that they stay with us longer. Second point is our internalized maintenance. Kevin Baldridge joined us in 2015, he asked me a question. "What do we do in operations?" I said, "We do everything except swing hammers." He gave me a little look kind of saying, "That's going to change relatively soon." Our 2021 goal is to achieve 65% of work orders completed by our in-house team. The next part is our innovation. We've spent many, many years innovating our platform. In 2018, we deployed TriForce across turns and renovations so we could reduce our turn times and manage our turn costs better. In the end of 2020 and the beginning of 2021, we are deploying this for our maintenance platform too. This will give us better insight into our vendor performance, our costs, and our performance. Next thing is our procurement department. We've really reduced our costs in the per square footage of paint or flooring that we deploy. It is because of our commitment to building out a strong procurement department. This will continue in 2021, and we see further cost reductions on certain line items. Close to 30% of our platform is Smart Home enabled. This gives us the opportunity to implement permission to enter. This is where we can go into people's homes when the resident's not home, complete the work order, and move on to the next home. This will really benefit our efficiency. Then the final part that we want to deploy, or are in the process of deploying this year, is our smart route optimization. We drive close to 700,000 miles per quarter, and we believe that we can reduce this by 15% based on our smart route optimization. These are the factors that will enable us to achieve similar results in 2021 as we did in 2020 from a cost to maintain. Hello, everyone, and thank you for having me here today with you. My name is Connor Doss, and I'm the Vice President of Centralized Operations. Today, I'll briefly cover some key aspects of our procurement operation, which is relatively new to Tricon, but has initiated some meaningful programs aligned to benefit both the operation and our residents. Procurement team was established in mid-2019 and is currently working on many strategic initiatives, with primary focuses around standardization of materials through specific manufacturers, leveraging our volume to achieve price compression, and securing agreements for an extended period, limiting price fluctuation. Building strong relationships with our supplier and manufacturer partners has been essential for us as we put a strategy in place, a strategy that allows us to save money through thoughtful practices and ensure that the products we put in our homes and apartments not only improve our properties, but improve the experience of our residents. Additionally, identifying extended warranty structures is at the forefront of our strategy to help mitigate reactive costs by ensuring that we source warranty programs that are meaningful and most of all trackable at the property level, so that our operations teams can dispatch a technician for warranty repair, which reduces the impact to cost to maintain. Identifying new opportunities is an ever-changing and constantly evolving exercise in the SFR industry. The key is to build long-term success with Tricon. We look for initiatives to implement that will give us a competitive advantage in the short and long term. In initiatives such as leveraging our data to forecast potential mechanical replacements downstream based on useful life. This brings me to the useful life expiration schedule. Over the past two years, we have leveraged a 360-degree scanning technology that allows us to capture asset tags on all pieces of equipment to obtain the make, model, and serial number, and most importantly, the manufacture date on all pieces of equipment. To date, we have roughly 14,000 individual property scans, which has brought back truly meaningful data when it comes to looking at the mechanical equipment life expectancy downstream. We've been able to leverage this data to create a forecasted run rate of replacements to help normalize our costs, budget more precisely, and plan more proactively versus being reactive, something that is a first in the SFR industry. We are still in the early stages, but having this type of visibility to our larger spend categories allows us to have more substantial discussions with manufacturers on volume pricing and helps deepen our understanding of the supply chain of each category from a brand level perspective, in an attempt to find creative ways to minimize the impact of inflationary pressures downstream, which we know is inevitable. Understanding the types of equipment installed in our properties puts us in a position to lead from the front on industry trends, stay ahead of environmental regulations, and position ourselves to make strides in the ESG arena. Moving on to the next slide. All products that we specify are done with a sustainable mindset, and sustainability is at the top of our priority list in the procurement department. The procurement team is currently working to develop an approach to measure our supplier and manufacturer partners on an ESG scale. Many of our partners are leading their respective industries in sustainability and have been working in this arena for some time. We are looking to build a viable way to measure them and align with our ESG roadmap. Our strategy around the ability to realize savings through procurement is simple. Take advantage of our everyday work streams to put a robust program in place that not only compresses and standardizes pricing on the material itself, but structure meaningful rebate programs that bring back dollars to Tricon for simply installing and utilizing products at scale. Do all this without sacrificing the quality of the products and experience for our residents. A key example of that would be our exclusive national paint program with PPG. Finalized and launched in Q2 2020, we have partnered with one of the largest sustainably focused companies in the painting industry to offer a zero-odor paint that is used for all painting projects across the country. Savings have been realized on both paint and labor sides, combining a compelling rebate that is structured specifically for Tricon, again, a first in the SFR industry. Our flooring program through MSI has been one of our most successful programs to date, with realized savings of 13% on over 7,000 sq ft of installed material in 2020. MSI is a leader in global distribution of stone and is the largest importer of stone in the United States. Partnering with MSI to provide our hard surface flooring product has allowed us to leverage their existing supply chain, which has remained somewhat insulated during the pandemic due to strategic planning of their factories in the later part of 2019. In 2021, we are looking to exercise some additional price compression on our hard surface flooring through the MSI partnership, where there could be further savings on the hard surface flooring on the horizon. HVAC. Since partnering with our Goodman Manufacturing relationship in 2019 to supply all of our HVAC equipment, we have installed over 2,000 HVACs, which is particularly important to each unit being covered under a 10-year parts and labor warranty structure. As noted at the top of this section, warranties are especially important, and this program allows us to activate warranty repairs with our third-party vendors and internal technicians, not to mention standardizing savings from an equipment and labor perspective to the tune of 15%, along with having the benefit of a compelling rebate structure on all equipment purchased through Goodman. With all that being said, 2020 was a challenging year, which made us become more thoughtful in how we approach our business. We are thrilled with the momentum that the procurement team has offered us thus far, and we look forward to new initiatives in 2021. We see plenty of large-scale opportunities to drive our costs down and our savings and rebates up while ensuring that we offer quality, energy-efficient, and sustainable products to our residents. Thank you, Kevin and everyone. We're going to host a Q&A session right now related to the operational excellence section of the presentation. We've got a few questions already in the queue, but feel free to enter questions into the chat function as we're speaking. The first question for the team. Which regions demonstrate the best renter demographics for economic resiliency and rent growth? Well, Wojtek, let me take that, and obviously, Kevin or Jon could chime in. Look, the demand is strong across the board for single-family rental. It is really mind-boggling that we're in this pandemic. Obviously, certain regions have been impacted significantly with high unemployment. Even with that, we're seeing strong demand across the board. I would say that the markets where we have the largest concentration are the markets that actually, in many cases, have the best demand characteristics right now in terms of re-leasing spreads. If you looked at, let's take Atlanta or Phoenix, in those two major markets for us, we've got re-leasing spreads between 15% and 20% right now, just off the charts. Other major markets like Charlotte or Tampa, 10%-12% re-leasing spreads. Even in Orlando, which obviously is a tough market given what's happened to tourism, we're seeing re-leasing spreads, let's say 5%-7%. The only area where we're weaker is in parts of Texas, that's always been the case. Houston and San Antonio are markets where we've never really been able to drive rent growth. In Houston, for example, I think there's just more supply, those markets tend to be very steady and very good on the collection side. Right? It's interesting. You got to look at both the ability to drive rent then also look at collections or your economic occupancy. We do find that in Texas, it's very steady. There's a strong libertarian culture of wanting to pay rent. Where we run into more trouble on rent collections is in places like California or parts of Florida, where there seems to be a mindset amongst some that they don't need to pay rent for whatever reason. Again, across the board, we're doing great in all departments, including rent collections. Rent collections is not an issue for residential real estate and will only get better as there's more stimulus, the economy gets better, and this vaccine gets rolled out. Next question. Can you walk through how loss to lease can drive additional $30 million of revenues? Well, Wojtek, you probably should take that one. I mean, that's just math, right? We're just essentially saying if you take 10%, if we're below market by 10% and you multiply that by our revenues, let's say of $ 300 million, that's $ 30 million right there. That's essentially how we're going to. Now, we're not going to get to that right away because obviously we've got low turnover. The turnover right now is around 20%, so it's quite low. Over time, what we're saying is we're going to capture that loss to lease, and that's why we think we've got the wind behind our backs for many, many years to come. I think actually, we're probably being conservative in what we're telling you on that loss to lease. Yeah, I don't know if it's a question more about the mechanics of loss to lease, but essentially, if market rents are rising faster than what we're doing with our residents, then upon turnover, we get to capture that amount that was foregone over the time that we took to make sure that resident stays in their home longer. It's part of our revenue maximization strategy. The next question is a broader question. What is your view on the sustainability of current U.S. housing demand? Well, I'll start with that, and obviously anyone on the screen here can chime in. Like I said in my opening remarks, we think it's really sustainable and long-term. This is not a quarterly or a one-year play. We think that when employers and employees make these decisions to move to the Sun Belt, they're permanent decisions in our lifetime, right? They become self-fulfilling prophecies as more and more people move. We think the demand is incredibly strong. There's been a number of studies, but one that was put out by Evercore, for example, and John Burns does a great job, is looking really at demand and supply. They believe that even in a base case, that household formations plus demolitions and demand for vacation homes is going to be at 2.3 million units, yet the industry's only going to supply about 1.5 million in a best case. If you look at that imbalance between demand and supply, where is this going to go? Obviously, it's going to put a lot of pressure on our fundamentals and allow us to drive rent and home prices. We think we're in a great environment for a long time to come, and things will only get better for us, I think, on the collection side, too, as we come out of this pandemic. Again, these aren't quarterly trends. These are long-term trends. This pandemic is going to affect all of us in a profound way. This is a great reset. It's not a quarter event. It's a great reset. It's probably our version of a war. Hopefully we never have to go through it again. It is major, and it's going to affect the way we do everything. We're just very fortunate that a lot of people said, "You know what? I can move now. I can live in the suburbs. I want more space. I want the serenity of being outside a dense area." When collectively as a society, and this is happening all over the world, we make those decisions, they tend to be more permanent, and they will create long-term tailwinds for our business. I'd add also, and we'll think about this a little bit further later on in the presentation, but we've intentionally selected markets that are going to outperform or have outperformed in the past in terms of housing fundamentals. Employment growth, population growth. When you see things like U.S. national home price appreciation or U.S. national rent growth, typically we're picking the markets that are at the better end of the range. We're not in Chicago where there's outmigration. We're not in New York State where there's substantial outmigration. I would also say not only do we think that there's strong overall U.S. housing fundamentals, but we're playing in the states that should outperform relative to the entire country. We'll talk about that a little bit later on in the day. Thanks, Jon. There's a clarifying question here on procurement savings. Is the $ 3 million of procurement savings relative to 2020? I can answer that. The $3 million of savings relates to all of our renovation and turns spending related to materials for 2021. We're expecting that total quantum of construction spend to be $ 114 million, and we're going to realize $3 million of savings on that figure. Next question. In terms of your suite turnover, how much of a factor is Tricon's lower price point relative to its peers? How much of the difference is driven by Tricon's operational culture? Kevin, you want to take that? Yeah. I didn't understand the very first part of the question. How much of our turnover is a function of our lower price point for our single-family rental homes, and how much is driven by our operating culture? Gosh, I think that I would say our operating culture and our operating excellence is the bigger driver. We work, as you know, very hard with the technology that we've engaged and just our mindset is to respond to people immediately and to really lean in their direction. And I think you see it in our Google reviews. We also have feedback loops. Every day we're sending out surveys to our residents to see how we're doing, and those come back very well. And we've seen that when we started out, gosh, four or five years ago, we were at 30%, 32%. In the fourth quarter, we're nearing 20%, and a lot of that has to do with the technology we've employed. We've made it easier to do business with us, and we've been able to respond to them. We've opened the communication lines a lot easier, much more convenient. I think our price point also does play in that we still have a lower propensity of people to leave to buy a home because of the family financials. Where our peers are playing in a higher range, a higher HHI, and they can move out to buy homes a little bit easier. That said, we have seen the movement to buy homes inch up into the low 30s, where we had been at 17% for a lot of years. I think it's still lower than our peers. There is a difference in the price point. I think our customer service, though, is a differentiator. Thanks, Kevin. Next question. Given the highlighted revenue drivers and cost containment measures that we anticipate, how do you think about 2021 same home NOI growth and margin expansion potential? Well, Wojtek, as you know, we don't provide specific guidance the way some of our U.S. peers do. I say that upfront as a disclaimer. We've talked about in terms of our long-term FFO per share growth targets of 10% per annum. In order to hit that, we needed to see 4%-5% same store NOI growth in our single-family rental portfolio, and we're confident that we can do that. We'll probably do better than that. 4%-5% gets us to that 10% FFO per share growth. That's what we're looking at. Obviously, we've been doing better than that in 2020. Maybe I'm being conservative, it'll probably be at least 4% or 5%. All right. Next question. Can you get to net zero homes? What does that take? Is that a lot of gray in Wissam's beard? Kevin, do you want to take that question? Can we get to net zero homes? That is something that we're talking about right now. Alan O'Brien and myself are really looking at that possibility. I think, gosh, we're shooting for 2030. By 2030, we would love to be at net zero homes. It's going to take an investment, it's going to take a lot of planning, but I think it's doable. We are right now talking to different vendors about using photovoltaic cells up in our roofs to really bring in solar energy to power a lot of the homes. We're starting to talk to people like Tesla to see about bringing in some of the cells to put in the garages to store that solar energy and use it to power the homes even when the sun is down. The air filter program that we have. Our HVAC, we don't use as much electricity. Low flow water devices. We're talking about can we educate our residents to start doing a small composting program? These are all things that we're thinking about. We have great aspirations. I think we can get there. It's going to take a while, but we've got to get our first steps going in the next year or two. Thanks, Kevin. Next question. What are the two or three largest components of cost to maintain? Jon or Kevin, two largest components of cost to maintain. I guess you want to break that down between expenses, turn, and CapEx, right? I guess is what we're after there. Yeah. Well, Wojtek- Jon. If you want to pull back up, I don't know if we can pull back up slides, but slide 26 also helps understand the breakdown between our spend. If you look at the way we spend within cost to maintain, even about 65% of that is labor and overhead, and 35% is materials, right? The biggest component of cost to maintain is labor. The majority of that labor is our in-house maintenance technicians, and a lesser percentage is third-party vendors. To break it down that way, it's 65% labor, approximately 35% materials. Otherwise, if you want to break it down between kind of CapEx, R&M, and turn, typically CapEx is around a third, and the other two are approximately two thirds. Those are kind of the two different ways I would say that you can slice those items. As Kevin noted, as we can drive turnover down, that has a meaningful impact on our cost to maintain savings. That's been one of the biggest drivers that we've seen. As our turnover has gone down from the low 30s into the mid to high 20s, we've seen significant savings because we're simply turning fewer and fewer homes, which results in a major cost to maintain savings. Excellent. Thank you, Jon. All right. I would add really quickly, the other dynamic that's moved the needle for us has been to use in-house maintenance to do a lot of our work, our work orders, especially in HVAC. We found that when we were using outside contractors four years ago, three years ago, we were replacing a lot more units than actually needed to be replaced. Obviously, it was better for them. As we now go out and we're the first people to go and do a work order, we can find that we can just replace a CAD 200 part versus a CAD 4,000 system. Having our people, as Alan O'Brien mentioned, we're trying to get to 65% work order percentage, and we'll continue to see the cost to maintain, I think, come down. Eventually I'd like to get to 70%. Thank you, Kevin. All right. At this point, we're going to move on to the next segment. I'm going to pass it over to Sherrie Suski, our Chief People Officer, to talk about our people and our culture. Thank you very much, Wojtek. Good morning, everybody. I would love to spend the next few minutes discussing the onboarding, growth, and development of our employees, and our Tricon Residential culture, which you've heard both Gary and Kevin reference to be one of our true differentiators. People need a purpose, especially when they're spread out across North America in 20 different markets. It necessitates that we have that purpose, that singular vision for our employees to rally around, to unite our employees. Our purpose, to imagine a world where housing unlocks life's potential. Could mean many different things to many different people, but to us, it reinforces our commitment to providing exceptional resident service so that our residents can focus on spending time attending a child's birthday party or enjoying a sporting event with friends, basically making the moments that matter in their lives. Our culture is built on trust, and our guiding principles or our core values empower our employees as they go out and make everyday decisions. Our employees trust us to do what's right on their behalf, just like we trust them to do what's right on behalf of our residents and each other. Our guiding principles are the foundation under which we innovate, inspire excellence, and elevate each other. Having a strong purpose statement and guiding principles makes it easier to attract and retain both dedicated and high-performing employees. We use an analytical measurement tool called Predictive Index to assist with our hiring. This behavioral assessment's completed for every single position that we hire, and then completed by every candidate who applies for that specific position. The subsequent reporting clearly shows where there is a match and where there is a mismatch between the job profile and the candidate. In this chart that you can see on the right, the candidate and the job profile are clearly a mismatch. The orange boxes are where the candidate's innate traits need to be in order to be successful in the job, and the little A, B, C, D circles are the innate characteristics of this particular candidate. When this happens, it does not mean that we will not hire the candidate, but this platform will auto-generate questions for us to be able to explore the mismatch across all four areas. It'll allow us to delve deeper and ensure that the best chance of success for both the company and the candidate. One of my favorite sayings is, "There are great companies, great employees, and not such good matches." What we're looking for is great company, great employees, and really great match. For those of you who joined us in Southern California a few years ago, we talked about a proprietary turnover algorithm that would predict our turnover, not on an aggregate basis, but actually on an individual basis. We were at about 80% accuracy at the time, which, given our small sample size, was impressive. I said at the time, we might someday see ourselves at 85%. I'm excited to share that that day is today. We are currently able to predict with 86% accuracy who will turnover in our organization. We utilize this capability to reach out and conduct check-ins, ensuring that we get ahead of any problems and don't lose our high-potential employees. Instead of most organizations just reporting after the fact on turnover, the fact that it's happened, we're actually ahead of the curve, and we're actually predicting that before it happens. As you can see from the chart, we've had a very significant impact on turnover trend over the last five years. We closed out 2020 actually at 9.8% turnover. That's not to say that COVID did not have a slight impact on that, but that is down from the 2015/2016 timeframe of almost 30%. We feel like we're having a really significant impact on turnover. As almost everybody knows, turnover is incredibly expensive for a company. While the goal is never zero, we don't want a stagnant organization, but the goal is to reduce turnover down as low as possible. Lastly, virtual reality programs. It's one of the initiatives I am most excited about this year. This is truly augmented reality, for those of you who are familiar with the technology. We are piloting it with our maintenance technicians. It'll allow us to standardize both the candidate assessment as well as the training across all 20 markets, all 100-plus technicians. It'll ensure that every resident gets the same knowledgeable, competent technician. No longer will we have to drive to a home to assess a technician's skill set or to train a technician. We'll be able to figure out, can they really install a garbage disposal, or can they really work on an HVAC technician? We'll be able to do it in each one of those markets without ever having to leave the office. Very excited about this technology. Through analytics, we can also automatically identify those that are best suited for leadership positions or positions with greater impact within our company through a combination of their performance scores and their potential scores. We do measure both. High-potential employees are automatically identified by our system and slotted for specific learning and development opportunities. These opportunities can be facilitated training, they can be e-learning opportunities, they could be one-on-one coaching, which we do a lot of. There's just a few examples on the slide here of the growth opportunities that our leadership team members have had over the years. These employees have been provided, again, with individualized learning opportunities and learning plans, just like all of our employees. Everybody has the opportunity to grow through either vertical or horizontal learning opportunities, and we're exceptionally proud that over 25% of our hires are coming through internal promotions. Standardization, automation, and analytics have allowed us to hire engaged employees at a lower cost in a faster timeframe, which has become even more challenging during COVID, and with lower turnover. Having our employees work in the markets that they directly serve allows us to better serve our residents. Now I'd like to turn it over to Alan O'Brien, who will speak about the organizational structure of our field teams. Hi, my name is Alan O'Brien. I'm Head of Property Operations for Tricon Residential. I'm here today to show you how our org structure has changed over the last number of years. When we started out the business, we followed the traditional property manager versus maintenance model that's traditional in multifamily across the world. What we've changed it to is more of a resident-centric operating model, where we focus on the resident move-in experience and resident retention. If you look at our move-in team, you have the leasing agent, which is traditionally in property management, plus the superintendent, maintenance technician, and project coordinator who manage the move-out all the way through renovation and then the move-in experience. How these guys get graded is on twofold. One is if our physical occupancy is at a certain percentage, and two is if our residents have a positive move-in experience. The other part of our business is resident retention. Now our residents in the property, and we have to retain them. That's made up of our retention specialists who sign new leases and renew our residents, our collections team to make sure that we don't have any delinquencies, and our maintenance team to ensure that if anyone calls in with a maintenance issue, that we fix it and it's taken care of in a timely manner. They're then graded based on our turnover rate, which we have led the industry in for the last number of years. The goal is to continue pushing that forward. What we have looked at over the last year is how does multifamily eventually may come into the fold with this. If you look at multifamily, there's the front of the office, which is the sales side, and the back of the office, which is maintenance, retention side. I believe that we're bringing two models together eventually that will make us more efficient in the single-family business as well as the multifamily business to drive our sales channels. I also believe that our single-family experience in the resident retention will make us more efficient in managing the properties. We will have our people that drive around in our vehicles wearing Tricon shirts that will go in and fix a resident issue at the property so that we can manage the capacity at that property much better, ending up with a more efficient model in the long run, reducing our cost to maintain and reducing our turnover rate as a portfolio. I guess let's flick to the next slide, which shows our team. We've made a lot of changes over the last nine years of doing this business. One of the biggest ones, as I just mentioned, is the organization structure. Changing something like that takes a lot of trust. It takes a lot of tenure. People have to trust you. They have to be with you for a while. When we looked at the Tampa team earlier on, here you can see Kristine Blasko is our leader. She's the director of the Tampa Southeast Florida markets. Kristine's been with us for over six years, of our nine years being in business from a single-family perspective. She's seen it from end to end. That builds that trust level that people know that we're out to do the best. Even in 2020, if I look back what has occurred over the last year, I can see that we didn't furlough anybody, that we're the only single-family company that didn't do that. That builds a trust and resecurity factor for our team to trust what we're doing in the future. The other part of this too is that every single person on our team has a vision. They all have vision statements. The key of our vision statements is excitement, raising up our people's experience as well as our residents' experience. If you look at our operations manager here, Julian Ospina, his vision statement is to lead, inspire, and create a positive environment. That is not really ever heard of in single-family property management. We really want to elevate up our people. The final thing I want to point out here is our superintendent's vision. To provide residents with the ultimate resident move-in experience while managing costs and timelines and ensuring quality. The key focus is getting the residents move in and that they're happy with us so that they stay longer and reduce the amount of turnover. That's what we're driving through the organization on a daily basis. Thank you very much, Alan. Lastly, as I said earlier, our culture is based on trust. Cultures based on trust sustain high performance. It really is just that simple. You set the stage for higher attraction rates, lower turnover, higher earnings, and better market returns. We're very proud to have been awarded Great Place To Work in both the U.S. and Canada. The Great Place To Work target is a high-trust culture where employees feel trusted by their managers and coworkers, and they trust their managers and coworkers. We've been recognized on Glassdoor, which is an employee sentiment website, as having one of their highest ratings, 4.8 out of five stars, where the average rating on Glassdoor is around 3.3 or less. Our Atlanta team just won Top Workplace in Atlanta through Energage. Energage is a survey that measures five separate indices of employee engagement and satisfaction. I have to tell you, this is still a secret. We're planning a March surprise and celebration for our Atlanta team, so nobody share. Instead of hearing it from me about how our employees feel about working for Tricon, I would love to give you an opportunity to hear directly from some of our team members. As a new employee here at Tricon Residential, I find the culture here fosters creativity and innovation. I work very closely with our field teams on a daily basis with the sole purpose of making the life of our residents better. Just a company that, full of opportunities. A guy like me that started as a temp, worked my way all the way through, and now been the procurement manager at the corporate office. It truly feels like coming to a second home every time I come to work. I'm a resident, and I am an employee. I know for sure that Tricon delivers. I can say that I am genuinely proud to be here and witness the change that Tricon brings to our community. Here at Tricon, I get to face different challenges every day. Not challenges that aren't made up, but challenges that impact real lives. Here in accounting, I get to innovate and improve processes so that we can deliver quicker and more effective solutions that will impact both our investors and our residents. That is why I love working at Tricon Residential. From a young age, my father impressed upon me the importance of doing what's right. According to him, when people do the right things, they experience personal growth and development. He believes that doing what is right will mostly require you to stand alone, but do it anyway. We all know that to achieve greatness or any kind of goal that we desperately want, we need to go above and beyond. This means that when we're at work, we don't cut corners. It means that we're putting our best and striving to even be better than our best output. Look, if it is right, it certainly isn't easy. It's very interesting to see that Tricon is championing this principle, and it just makes me feel as though I'm in the right place, and it's a fantastic feeling to have. We as a team have the opportunity to hand over the keys to starting our residents' journey no matter where they may be in life, no matter what point. That to me is huge. It's so exciting to be a part of that adventure. I'm happy to be here. Thank you. I have to tell you, we got such an amazing response to this request. We got hundreds of our employees who submitted their cell phone videos for us to watch. If we had included all of them, we would probably be sitting here until 4:00 this afternoon. It is an amazing outpouring of people's hearts in terms of why Tricon is so special to work for them. At this time, it's my pleasure to introduce Dean Bender, our Head of Marketing, to talk about our brand pillars. Hi, my name's Dean Bender, and I'm Head of Marketing. 2020 was a busy year for Tricon from a branding and marketing perspective. When we decided to consolidate and centralize, we needed to visually represent ourselves with one name and logo. We became Tricon Residential. In the past, as you can see, there were many different identities under our banner, which was very confusing internally and externally. A strong brand is a promise consistently kept. In our previous state, a consistent message was very hard to achieve. Embracing our history and our brand equity, we identified a name that provided a foundation for consistency and incorporated our most important asset, residents. Harmonizing our mission and vision statements resulted in our new purpose statement and new guiding principles that Sherrie shared. Where we focus our actions has been articulated in our pillars. We know that by investing in our people, the residents we serve in our communities, and doing it in an innovative manner, we will build a strong foundation for success. Imagine. Such a powerful word. A word that does not discriminate. A word that is available to everyone. A word that initiates great accomplishments. This is at the center of a virtuous circle that drives our business. It allows our people to provide the best resident experience, so our residents are happy in a Tricon home and stay longer, which provides consistent results for our partners, which grows our business, and so on, and so on. This is all enveloped by our brand, our characteristics that guide our decisions. We are genuine, thoughtful, innovative, life-affirming, and aspirational in everything we do. Imagine. It encourages employees to build careers and communities. It creates a wave of emotion when families first see their new home. It launches Toronto's newest landmark rental building. It reinvents the meaning of community in an apartment building. It delivers sustainable initiatives to help make the world better. It introduces innovative ideas that affect our children's future. It allows a world where housing unlocks life's potential for people of all ages, color, and stages of their life. This has all been captured in our new website, a robust digital storefront that combined three previous Tricon websites, Tricon Capital, Tricon American Homes, and The Selby, which is our Canadian multifamily site. The goal was to provide an easy user experience and journey that delivered our brand intuitively. On the right, you can see the menu and how we offer many different entry points into renting a home or finding information about Tricon. Today, we have mere moments to capture a prospective renter's attention, and we better make things easy. This is why we made sure that you can find a home at Tricon Residential within two clicks of visiting the site, delivering and ensuring the best resident experience. Thank you, Dean. All right, we're back for Q&A here. Why don't we start with a question specifically for Sherrie. What metrics specifically would indicate a high turnover employee in the screening process? Yeah, that's right. It's a really interesting question. We wondered the same thing when we input 50 different, 60 different data points for everybody. What we found was the top three that will indicate a high risk of turnover is. When you go back to the Predictive Index assessment that we use, you'll find people that are very low Cs. Low C is somebody who is very high, actually, in patience. Somebody who is incredibly high in patience can struggle a little bit, as Gary described us, as that marriage between real estate and a very entrepreneurial high-tech company. People with incredibly high patience levels can struggle in a very high entrepreneurial type organization. The second one was really somebody very low A. Somebody that I don't want to say collaborative to a fault, but that really is what it is. Somebody that is uncomfortable being independent, wants to take direction constantly, doesn't want to step out of their box and innovate. We find that those people can struggle sometimes at Tricon. Lastly, it made sense once we found out, but it made sense that so employees who don't take health insurance in the U.S. through the company, frequently will turn over at a greater rate than people who do. Kind of makes sense because if you're not taking health insurance through the company in the U.S., you likely are taking it through a spouse or a partner, and that tells you there's probably two incomes. That's helpful. Thanks, Sherrie. Next question. How far ahead of your peers on technology do you think you are? I think we are- Yep. Yeah, go ahead, Sherrie You go first. No, I was just going to say, I will speak just from the HR perspective. Certainly, I think we're ahead of our peers in other aspects as well. I think from an HR perspective, some of you who have heard me speak before, my background is primarily high tech and big data. Our team in HR has a really big focus on driving decisions through data-based analytics. The old adage: If you can measure it, you can manage it. All of our systems have that focus. What can we measure? How can we manage it better, and how do we use the data? Kevin, you're the president of the industry lobby group, the NRHC. Be careful in answering this question. Where do you think we're at? I think right now we're leading the pack. Clearly. When you take all of the innovation and the technology and the engagement that we have on all aspects, which you're hearing about today, in aggregate, I think we're ahead. There are some aspects I think some of our peers might have a slight edge on the acquisition program. We have a really good one in TriAd, and I think it's probably second to one of our peers. There's other instances, but we're the first to employ IVA in the industry. We were the first to work with CoreLogic to use them as a screening. Which by the way, it's one of the reasons I think that our turnover rate is also lower, is we're very meticulous about who we let in. We have some of the higher thresholds for people to be able to pass to get into the house, and that's all automated as well. I think Tripod and TriForce together to where we've broken down every single step of the process, whether it's leasing, renewals, move-outs, move-ins. We've broken it down into what is done automatically, what is done by a person. No one's gone to that depth of thinking and then put it into technology. Holistically, I think we're ahead. I think there's some aspects where some of our peers might have a slight edge. Thanks, Kevin. Going back to the topic of our resident profile on new move-ins on metrics such as household income and rent to income, how have those metrics evolved over time and how has the tenant base evolved over time? Kevin, I'm going to hand that your way. Yeah. A lot of it has to do with there's a couple things that we did. One is when everybody jumped into the industry and everybody was trying to get market share, we all bought a lot of homes everywhere. We had homes that were less than 1,000 sq ft, were $700 in rent, were in tough areas, and we found that people were having a hard time making their rent payments. Some of them just didn't want to pay it, but a lot of people just had life choices. They had to either buy a set of tires or they had to pay the rent. We found that for us, it was in an area that there wasn't enough affluence and there was a lot of give and take in paying the rent. We moved up the stack a bit, and we sold homes that were in tougher areas. We sold homes where there was a lot of delinquency. Then at the same time, we went to CoreLogic and we centralized the screening process. As you know, human nature, if your regional manager or vice president is really pushing occupancy out in the marketplace, you might nudge towards letting somebody in that otherwise you might not. A, that runs afoul of fair housing and eventually it leads to additional delinquencies. Centralizing that screening process, which we did about three and a half years ago, bringing in CoreLogic really raised the bar. We watch our rent to income, which is in the 21%-23% range, which I think is very comfortable. We turn down anywhere from 48%-52%, 53% of applicants, we turn away. We're pretty choosy, and as Alan mentioned when he was talking earlier, all of these things that we did about three years ago have really now paid dividends as the resident profile has turned over. Hopefully that answered the question. Yeah, I just want to build on it, just on household income. Our household income has edged up. Now part of that is just general wage inflation. I can tell you when we were talking to you about this question maybe two or three years ago, household income was closer to high 60s or low $ 70,000. Now we've edged up to $ 85,000, right? You'd have to look at it in comparison to our peers, but I'd bet that even with underlying wage inflation, we are closing the gap a little bit with them. They're still ahead of us in household income, but we are closing the gap as we are buying what we would call a little more expensive or a little higher quality homes. The buying program has changed fairly meaningfully in the last three to five years, and that has led to higher household income. Thanks, Gary and Kevin. Going back to the topic of cost to maintain, what is the magnitude of wage and material inflation pressures that we're currently offsetting with process improvement? I.e., if you fell asleep and were simply price takers in the market, how would cost to maintain rise in the next few years? Well, I'm going to let Jon and Kevin answer that. Kevin, it's funny. Go ahead. How nobody wants to talk about culture, right? Yeah. You guys are back to section one. That's good. Whatever you guys want. It's all good. We'll use this to answer questions about cost to maintain. Okay, Jon, you go first, and we'll get you in and then Kevin. Yeah, sure. Look, on the labor side, we're feeling a level of pressure, it's probably slightly higher than typical inflation of 2%. Labor pressure could be 3%-4%, I would say. Materials really fluctuates. Part of the surge in homebuilding demand has put pressure a little bit on lumber and some other materials. Again, you could be feeling material pressure of, call it, 3%-6%. Again, slightly higher of where I'd say CPI are. We continue, as Alan O'Brien mentioned earlier, we continue to find ways to innovate. We didn't have a procurement department, for example, two years ago. Now we've stood that up, and every single time we go out to negotiate a contract, we're trying to pool together all of our nationwide SFR homes. We're going to bring in multifamily as well. We're able to offset essentially all of those increases or even more, as you've seen from that chart, by getting more efficient in the way we procure, more efficient in the way we dispatch our maintenance techs in the number of homes. One of our maintenance techs can service has gone up from, call it, two and a half to three and a half per day. We're continuing to find efficiency, and they're not done. As we buy more homes, as we have more density, as we're actually buying in greater scale, we're going to continue to see more efficiency from the tech side as well as the procurement side. Thanks, Jon. Woj, just to add on. Go ahead. Just to add on to that, the procurement program is just getting started. I think they've made great inroads, that's going to continue. We also developed this year was a standard product. We created a consistency, now we have two people kind of in our scoping department, they're ensuring that everybody is living with and staying within that standard product so that we don't have people in different parts of the country. If somebody might like a kind of a brushed nickel, they'll change things in the house because they just physically like something better, you're needlessly adding cost. The standard product, the scoping consistency is going to continue to drive our costs down. We've compressed the delegation of authority on both turns and renovations. If you're going to go over budget, and everybody now knows where their budget is, and that's part of our TriForce, is we've got so much more visibility into what the scopes are, who's spending what, why people are going over. That compression of delegation of authority keeps everybody in line with our costs. We're also going to be kicking off, this year, is a proactive maintenance program, preventative maintenance program, where our guys are going to go out into the field and touch every home and get inside the home and be able to see if some things are starting to break down and be proactive in how we fix things before they break and cost more. That's, I think, also going to bring our costs down in the future. I think there's room for our cost to maintain as general inflationary pressures occur in the next two to three years, that we can offset a lot of that for a period of time. Thank you, Kevin. We're going to try to come back to a lot of the questions in the queue towards the end. At this point, why don't we move on to the third and final section of our presentation. Over to Jonathan Ellenzweig to talk about our growth strategy. Great, thanks a lot, Wojtek, and I'm really excited to be here. We have obviously a lot of the conversation thus far has kind of led up to this and talking about how we're going to continue to grow, how we're going to allocate capital, how we select our markets, and also how we leverage private capital. Those are the main themes that we're going to cover here, and we're going to kick this off with Rick Timmins and Alan Leela speaking a little bit about the markets where we operate and the growth trajectory of those markets. I'm going to send it over to Rick. Hi, I'm Rick Timmins, Director of Investments. Tricon has targeted its rental housing focus on the U.S. Sun Belt, which has showcased its resilience compared to coastal markets over the past year, as the migration patterns observed in the prior decade were further exacerbated by COVID-19. More and more people are leaving larger coastal cities for lower taxes, cheaper cost of living, and better job opportunities in the Sun Belt. We expect this trend to continue, and our portfolio is poised to benefit very well compared to a more coastal or broader brush strategy. Specifically, 70% of our rental NOI is generated in states that saw 95% of the U.S.'s net in-migration over the past year in Georgia, North Carolina, Texas, and Florida. Going forward, we expect our markets to outpace the broader U.S. growth by about 50 basis points per year, which will continue to drive the demand and fundamentals in our portfolio. To the next slide. Over the past five years, our portfolio's rent growth has outpaced the U.S. by an average of 1.6%, or a cumulative 9.7% when compounded. What does this all mean for our shareholders? By focusing specifically on the Sun Belt, we estimate that we've generated nearly $29 million in incremental revenue over the past five years, or roughly $6 million per year. Using our year-to-date 2020 NOI margin of 66%, this results in a $19 million NOI difference, or about $4 million per year, simply by strategically choosing to operate in the best markets. We look forward to seeing continued strength in our Sun Belt markets over the coming years, which, coupled with our focused operating platform, should continue to drive incremental value to our portfolio. Thank you. Hello, this is Alan Leela. I'm a Vice President on the Investment team, focused on overseeing the growth and management of Tricon's Canadian develop-to- core rental platform. From a market perspective, while we can't ignore COVID short-term impacts, we believe the long-term outlook for Toronto rental housing has not fundamentally changed. In 2019, Toronto had the highest population growth of any city in North America. This population growth is driven by immigration, with the greater Toronto area receiving over 30% of new Canadian immigrants. As such, with borders closed and post-secondary education moving online, it's not surprising that for 2020, Toronto's population growth falls short of previous records. As we look ahead, population growth is expected to resume. The federal government has announced increases to immigration targets through 2023 to make up for the COVID-era shortfalls. Not only is Toronto, Canada's largest employment center and financial hub, it's also recognized as a major technology hub, adopting the moniker Silicon Valley North. Toronto now hosts the fourth largest technology employment base in North America, with growth outpacing the likes of San Francisco and New York over the last five years. Toronto frequently ranks atop Best Places to Live indexes and is a place people want to be. However, Toronto housing is expensive, especially on the for sale side. While interest rates have hit all-time lows, any affordability benefits have been erased by increasing home prices. With a home purchase out of reach for many, many are forced to rent for longer. While the city is dotted with what sometimes seems like an endless sea of construction cranes, only a small percentage of these new towers are rental. Supply is simply not keeping up with demand. We believe that when borders reopen and citizens have access to the amenities and destinations that make Toronto a great place to live, demand for rental housing will sharply rebound. As one of the few rental developer operators in the city, Tricon is exceptionally well positioned to capture the value of this growth. That was great, and thanks very much, Alan, and thank you, Rick. Quickly to recap some of the key takeaways, especially on Rick's slide, is that really in market and selection and picking the right markets, the right places to be, we've generated $30 million of incremental revenue over the last several years. When you combine that with expectations that population growth in our markets are going to outperform the broader U.S., we expect that to continue going forward. On top of that, we're going to harvest loss to lease. When you think about the growth potential, the top-line growth potential of SFR, it's very significant. Before we turn to capital allocation, just to grab a quick question off of the queue, I saw someone had asked about market saturation, which really ties into this theme. Someone had asked about whether we feel that we're reaching market saturation in any of our markets. How do we feel about expansion to new markets for SFR? First, on the market saturation topic, picking a market like Atlanta, there's 5 million people in Atlanta. We own about 5,000 homes. Combined with all of our SFR peers, even some of the smaller institutional groups, that's probably 40,000 or 50,000 total institutional homes in a city of 5 million. We think we are nowhere near market saturation. In none of our markets do we really fear market saturation being an issue, and we continue to expect to see extremely strong demand. That's not a concern. In terms of market expansion, when we look across the map of where we operate, we're continually analyzing where we should be and where we shouldn't. We do see in the next couple of years some opportunities to expand to new markets. First, I would say looking at new places to operate within the Carolinas. We're currently in Charlotte, Raleigh, and Columbia, but there are some other MSAs ranging from, call it 750,000-1.5 million people, where there's great opportunities and strong housing fundamentals. Certainly looking there. In addition, looking at Texas. We have a large concentration in Austin from a multifamily perspective, and we see that as a natural opportunity for SFR. Then also within our existing markets, there's some places, for example, Phoenix, where we really slowed down or curtailed our buying over the last several years as home prices ran up, but we've seen significant rent growth in that market, as Gary touched on earlier. We do see an opportunity not only to add some new markets, but to kind of reenter acquisitions in some of our existing markets. Hopefully that answers that question. Turning it over to capital allocation. Really the key punchline here, I think you've seen this over the last several years, is that our company has been transitioning over time, we really view ourselves as an owner/operator of rental housing. Today, if you look where we are, we're at about 67% of our assets are SFR, 20 are multifamily, and 13 are residential development. What you're going to see over time is a continued increase in the concentration in SFR, and in particular, a reduction in the concentration in development, which is largely achieved by using third-party capital and frankly, growing the SFR segment. If you look in the middle here, you see us increasing SFR closer to 80%, which is our goal. We're getting to 78%. The largest catalyst there is really the syndication of a large percentage of our U.S. multifamily portfolio. I would say we've made huge strides in that. We're really in the shorter strokes of documenting that today, and I would describe that event as being weeks away, not months away. That's very exciting. If you look at the long term, we really see ourselves as being 80% + exposure to SFR, and less than 10% exposure to development. Those are the two main takeaways. We're a rental housing company. We're going to be at 90%+ income-oriented, stabilized properties between SFR multifamily and less than 10% in development. Moving forward, let's talk about how we're going to get there, how are we going to grow across these businesses. I'm going to turn it over to some of my colleagues, Bill, Josh, Wojtek, and Andy, who are going to share some more insight on our SFR growth strategy, and how we plan to expand our acquisitions over the next several years. Over to them. Hello. My name is Bill Richard, and I am Head of Acquisitions and Asset Management for Tricon. Out of approximately 128 million owned homes in the U.S., there are roughly 16.4 million single-family rental homes. Of these, only 2% are owned by institutions like Tricon, leaving a large and sustainable acquisitions pipeline where we have only barely scratched the surface. As a result, Tricon has spent many years improving its acquisition platform to efficiently source, underwrite, and close on available listings. Historically, the MLS and local one-off channels have represented about 80% of our purchases with the remainder from occasional portfolios, new homes from builders, or volume from iBuyers. For a new entrant, acquiring homes may be manageable on a small scale. However, there are hundreds of critical steps needed to acquire at a national scale. These include aggregating opportunities across multiple channels, applying targeted underwriting criteria, managing the closing process, and renovating hundreds of homes at a time. All of these steps have been painstakingly detailed in our acquisitions platform, which is constantly being enhanced. One day soon, buying a home will be as easy as the one-click buy option on Amazon. On the table below, you can see the historical sales trends in our target markets, resulting in approximately $ 1.2 million in annual sales. What does this mean for our acquisition funnel? Assuming Tricon were to acquire homes in all 18 markets today, approximately 200,000 homes fit our buy box, and we would make offers on one-third of these homes, translating to a conservative capture rate of 5,000 acquisitions annually. To increase volume further, we can expand the buy box, add new markets, or drive higher conversion rates from offer to acceptance. Notably, if we can increase the acceptance rate in our offers by 1%, that would translate to another 700 homes acquired annually. Given the vast opportunity in U.S. rental housing, coupled with Tricon's streamlined acquisitions platform, we believe that we can conservatively acquire approximately 4,000-5,000 homes per year without changing a thing. Hello. My name is Josh Nogowski. I'm Vice President of Single-Family Rental Acquisitions at Tricon Residential. This slide covers a few real-life case studies of homes acquired in the Charlotte, North Carolina market over the last 18-36 months. The main theme to take note of is that rent growth has stayed relatively in line with price appreciation. The average of the examples shown here has been 19% cumulative home price appreciation and 14% rent growth from time of acquisition to current market conditions. You'll see in case number one in Concord, North Carolina, that we were able to purchase model match homes at the same cap rate over two years apart. In scenario two, Gastonia, North Carolina, there was some cap rate compression over time, but rent growth mitigated that to a 40 basis point spread in the cap rates over almost two years of home price appreciation. Both of these neighborhoods are representative of the consistent, predictable returns Tricon's acquisition strategy is based upon. Strategy targets newer vintage product in conforming neighborhoods. An emphasis on good public schools, comfortable resident rent income ratios leads to retention and runway for rent growth while keeping affordability in line with our targets. We feel the fundamentals in single-family rental. They allow for consistent opportunities to acquire at target cap rates and systematically capitalize on rent growth in the legacy portfolio. A consistent acquisitions program also leads to outsized returns on the legacy homes. The implied cap rates or the cap rates using the current market rents with the current all-in costs on these subject properties is 7.2%. Hi. This is Wojtek Nowak, Managing Director of Capital Markets. The economics of single-family rental are extremely attractive. Just think, we're buying homes today at a going-in cap rate of 5.9%. We've been doing that for several years now. You may recall our single-family joint venture, which launched in 2018, has a very prescriptive buy box that requires us to buy at an average cap rate of 5.9%. Meanwhile, debt financing rates in the securitization markets have been decreasing over time as debt investors embrace the resilient nature of single-family rental and the attractive risk profile of our portfolio. Our most recent securitization priced at 1.83% fixed rate over seven years. That's over 400 basis points below our acquisition cap rate. Likewise, the public equity markets are recognizing the attractiveness of SFR. For publicly traded companies within single-family, multifamily rental, and manufactured housing subgroups, the market implied cap rates have been coming down over the past few years in step with the general direction of interest rates. Single-family rental, which has historically traded at the high end of these residential subgroups, is now trading in line with multifamily at implied cap rates that are below 5%. There's still some catching up to do relative to manufactured housing, which has been a market darling, especially after making it through the great financial crisis unscathed. We've often said that single-family rental cap rates would compress once the business proves itself through a down cycle. Well, guess what. We're in the midst of a down cycle right now, our business is performing incredibly well. It makes you wonder, where can SFR valuations go from here? Hello, I'm Andy Carmody, Managing Director, and I lead our U.S. development business. Build-to-rent communities are a meaningful additional growth opportunity for single-family rental at Tricon. When we say build-to-rent, we're referring to purpose-built, dedicated single-family rental communities. Today, we own five build-to-rent communities with 425 homes in four markets. In 2021, we expect to acquire or begin development of an additional nine communities with 1,110 homes across seven U.S. markets. Further, by 2022, we expect to deliver 12-18 communities per year, which should be 1,200-1,800 homes per year on an ongoing basis. In this strategy, as we've mentioned previously, we're leveraging both third-party capital for development as well as our substantial experience partnering with third-party builders and developers across the U.S. to acquire and develop these communities. What's really terrific about build-to-rent, it's a win-win for both Tricon and for our residents. First of all, our residents. Our build-to-rent communities offer complete neighborhoods with a true sense of neighborhood and community. They also offer our innovative design for rent products that include features driven by Tricon's proprietary resident research, highly efficient use of space, as well as light and bright floor plans that live larger than equivalent-sized homes in a given market or area. Lastly, Tricon provides the maintenance not only of the homes but also the community in our build-to-rent communities, providing true turnkey living for our residents. On the Tricon side, our build-to-rent communities provide several benefits, including a maintenance honeymoon with new home construction and warranty coverage that's expected to deliver 34% lower maintenance and repair costs over a 10-year ownership period relative to our existing portfolio. Our communities, they have a critical mass of homes, which allow us to efficiently lease, conduct property management, and maintenance in a community all in close proximity to one another. Lastly, our design for rent product also includes benefits for Tricon, including built-in external maintenance access for many of the home systems and components. Tricon standard features are all included and built-in upfront, such as paint and flooring. Lastly, our homes are built to the latest energy efficiency standards that benefit both our residents and Tricon. On the next slide, we have an example of one of our new communities that's coming online in 2021. This is Vistas at Veranda. It's a 100-home dedicated design for rent, build-to-rent community that's part of a larger Johnson master planned community in Houston, Texas. This community includes our innovative design for rent homes, which average approximately 1,538 sq ft, have three and four bedrooms, attached two-car garages, great room layouts, and all of the resident and Tricon benefits we've just discussed. Additionally, the community includes neighborhood amenities, including a park, a playground, and community gathering space. This community is a model that we're seeking to replicate as often as possible across the U.S. in our build-to-rent strategy. Great. Before we talk about multifamily, I just want to grab a couple of questions off the queue that relate to this section. Matt Logan had a great question asking if we're tilting more acquisitions toward four bedrooms from three bedrooms. If you think about legacy or existing homes, four or five-bedroom homes, they're much bigger in square footage than a three-bedroom traditionally, and it drives up our rental price point. Where we're adding bedroom count, as you just saw from Andy, is in build-to-rent. In addition to that, when we're able to control the product and design new homes, we're actually putting some unique features into our homes that benefits the resident who might work from home. I think Andy might have invented this, but a lot of our new build-to-rent homes are going to have a Zoom room. What we're essentially doing is maybe reducing the closet size on the second floor or removing some of that extra landing space and creating a smaller, maybe a six by eight or a four by seven room where people can work from home. We are able to add these Zoom rooms or additional features that reflect people who might have some element of homeschooling or some element of work from home. That was a great question. I saw a question from Prescott saying, is there going to be pressure on acquisition volume versus where we were historically? I think Bill touched on this very well. Historically, we were buying around 800 homes a quarter, around 3,200 homes annualized, and we actually think there's an opportunity to expand. Our annual acquisitions over time. Q1 is going to be a little bit more traditional this year simply because it's a slower listing environment. December and January, which drives Q1 closings, are traditionally slower times to list your homes. We do think over time, we can get to 4,000 and 5,000 homes. Some of that is organic, and some of that is through our build-to-rent program. We think there's an opportunity to expand acquisitions and not contract them. Lastly, Jay had asked a question about our capital allocation and for-sale housing. Given how booming the for-sale market is, do we plan to deploy more capital into for-sale development? What I would say is, on the development side for housing, where we're focused really is build-to-rent. Where you're going to see capital deployed is into build-to-rent and less so into MPCs. Those communities are performing great. Our Johnson portfolio is really blowing up, blowing and going, performing better in 2020 and 2021 in a lot of aspects versus budget. When we look at new capital deployment, we really see the development component in the U.S. focused on build-to-rent versus for sale. Now turning it over to multifamily. We'll speak first about the U.S. Look, 2020 was a bit of a down year for U.S. multifamily as compared to SFR. I've got to remind you that when you look at U.S. real estate asset classes as a whole, and especially the major food groups, sure, industrial performed extremely well, but right up there is U.S. multifamily. When you compare that to something like retail or office or hospitality, it's really night and day in terms of performance. I do want to remind you of that. In addition to that, if you think about our U.S. multifamily markets and asset types, these are very similar to SFR. In a lot of ways, the person who's living in our U.S. multifamily is the same type of person living in single-family rental, just at a different point in their life cycle. It might be pre-marriage or pre-kids or post-kids. We're still capturing a very similar income demographic, just at a different point of their life cycle. Again, our multifamily assets are in very similar locations, both in terms of cities and even if you get some more micro in terms of the specific suburban locations. Turning to the portfolio and performance. If you look at this, we see a number of ways that we can drive performance. Remember, we just took over asset management literally in January and February of last year, right before the pandemic, and we have not fully integrated operations across the property management side. If you look at this, we see a number of ways we can drive performance over the next couple of years. In customer service, w e find our third-party property managers, they do a good job, but they don't really drive the resident experience like we do in SFR. We think we can be more responsive to resident inquiries. We think we can create better events and onsite programming to create a better sense of place and a better sense of community, which really ties in with the three pillars of Tricon. Secondarily, in terms of resident screenings and collections, we think that our centralized screening team really does a better job than the current onsite screening methodology we use for residents and will help us pick the right residents for our multifamily units, which over time will help drive collections and reduce turnover and drive retention. Lastly in this front, for single-family rental, we have a centralized collection teams that really are masters in the art of collections. They understand the resident needs, they understand the resident condition and situations, and they've been able to outperform in many months our multifamily collection efforts as a result of that. Unleashing that team on our multifamily business we think can drive some efficiency. Lastly, in terms of repair and maintenance, we think that rolling our procurement program out across our multifamily portfolio and also leveraging our maintenance tech program will help drive some incremental efficiencies. When you add those things up and then you layer in market factors that have driven performance downward in 2020 as a result of COVID, but will lift as COVID and conditions normalize, things like occupancy, things like bad debt, things like rent growth. We expect that in the near to midterm, there's an additional $6 million of potential NOI upside, and in the longer term, meaningfully more than that. On that note, this is U.S. multifamily. I'm going to now turn it over to my colleagues, John English and Andrew Joyner, to give you some insight in our Canadian multifamily business. Over to you guys. Hi, I'm John English, Head of Development in Canada. In Toronto, Tricon is building a portfolio of Class A rental apartment buildings strategically located throughout the city. As of January, we have three projects under construction: The Taylor at King and Spadina, located in the heart of the city's entertainment district, The Ivy, just south of Yonge and Bloor, and our first project in the West Don Lands, an exciting area east of the city's downtown, next to the popular Distillery District. Together with our projects under pre-construction, including Labatt, The James, and further phases of the West Don Lands, Tricon has a portfolio in Toronto of over 3,700 purpose-built rental apartments. These projects will all be built to a high standard of design excellence with resort-style amenities that elevate the resident experience. My name is Andrew Joyner, Managing Director on the investment team. As John and Alan alluded to, in 2015, Tricon Residential became one of the first to enter the purpose-built rental market in Toronto at scale. Today, we have one of the most active development pipelines in the city. In addition to The Selby, which is our first project that's now stabilized, Tricon currently has approximately 3,700 units in our pipeline, ranging from luxury to affordable units in prime AAA locations throughout the city. These projects are largely joint ventures with pension funds and strategic capital partners that allow Tricon to efficiently deploy its balance sheet and earn fees. Our pipeline of projects will generate significant value for Tricon shareholders in the years to come. Well, we've been talking about our development pipeline for several years now. Few of you may realize that we have multiple projects under construction that are largely U.S. In 2022, The Ivy, West Don Lands Block 8, and The Taylor will begin lease up and generate approximately $ 8 million in NOI to Tricon, which translates to between $0.50 and $ 0.70 of value per share. By 2025, when additional projects in the West Don Lands deliver, as well as our flagship project, The James, located in Toronto's Rosedale neighbourhood and recently started construction, come online. We anticipate approximately $37 million of NOI being generated for Tricon, which in aggregate translates to approximately $3 per share using current market cap rates. It's worth noting that we continue to see cap rates notch lower, which could provide further upside in terms of value per share. Tricon is well on its way to creating the highest quality rental apartment portfolio in Toronto, managed by our best-in-class operating platform, which will generate considerable value to Tricon shareholders in the years to come. Great. Thanks, Andrew. To wrap up this section, I'm going to turn this over to our colleague, Evelyne Dubé, who's going to speak about our use of strategic third-party capital as well as our private fundraising activities. Over to Evelyne. Hello, I'm Evelyne Dubé, Managing Director, Private Funds. Private funds and advisory have always been a part of Tricon's core activity over its 30 years of history. Managing capital for third-party investors, such as pension funds or sovereign wealth funds, alongside our own capital, benefit Tricon in three ways. First of all, it allows us to scale our business faster. For instance, you will see on the lower left corner of this page a graph that shows the increase in our rental revenue over the past two years, from 2018 to 2020. Over that period, our revenues doubled, and one-third of that growth is attributable to third-party capital. Secondly, it allows us to have a moderate exposure to development. For instance, in our multifamily Canadian business, we have nearly $2 billion of assets at various stages of development, and we are funding these assets with nearly 60% of equity coming from third-party investors. This means that Tricon only needs to invest $190 million of equity to fund $1.9 billion of assets under development. Thirdly, it enhances our shareholder return. For the work that we do managing third-party capital alongside our own capital, we earn asset management fees and performance fees. These fees can increase our return on equity on our own investments. You'll see on the lower right corner, examples of target investment returns to Tricon. For instance, if we make an investment at the asset level at a cap rate between 5% and 6%, if we add debt financing, this translate into leverage return between 10% and 15%. If we add incremental fee income on top of that, this bring our investment target return to 12%-20%. This, of course, also helps drive the growth in our book value per share. What about new capital? Well, on the next page, we highlight our fundraising opportunities for 2021. Well, we're still early in 2021, that means that we've been really busy last year speaking with potential capital partners, including new and existing relationships. We are showing here on the table the five investment vehicle that we are working on this year. First of all, in our U.S. single-family rental strategy, we are firstly working on SFR JV-2, which is the follow-on joint venture to SFR JV-1 that we expect to be fully invested by mid-year this year. Secondly, we're working on a new strategy called Homebuilder Direct, which is a strategy that is focused on buying newly built home directly from home builders and renting them. For our second strategy, U.S. multifamily rental, the first vehicle is, of course, to syndicate two-thirds of our portfolio of multifamily assets. The second one is a growth vehicle to acquire garden-style apartment building in the U.S. and Tricon Sun Belt markets. Lastly, for Canadian multifamily rental, we are working on creating a joint venture focused on a build-to-core strategy to develop and hold for the long term classy rental apartment buildings in Toronto. We expect all these opportunities to close in 2021. As a whole, they represent over $1.2 billion in equity in third-party capital. These opportunities will substantially increase our AUM, our third-party AUM, and will diversify our investor base. For the work that we do managing those assets for our partners, we estimate that we will earn approximately $ 10 million in asset management fee per year. We therefore anticipate that this will make 2021 the biggest fundraising year in Tricon's history. Thank you, Evelyne. Good afternoon, everyone. Wissam Francis, Executive Vice President and Chief Financial Officer at Tricon. I know we're coming across noon now. If you bear with us for 15 more minutes and we'll take up questions in a second. The other thing I hope you learned today is the fact that Tricon is more than just Gary, Wissam, or Wojtek doing presentations. Tricon is a collection of individuals and professionals who eat, sleep, dream residential real estate. I also think you've heard today about the numerous third-party capital fundraising opportunities that we're working on, as Evelyne just alluded to. We have a very exciting first half of the year, we think it's going to be a great time for us. The question is going to be obviously is how are we going to finance this growth? Let's talk about that for a few minutes. First, let's summarize the sources and uses of cash. Our first amount of proceeds coming back is the syndication of U.S. multifamily portfolio, which is expected to generate $350 million back to Tricon. We will use that money to repay our debt, and we should be able to reduce our net debt to assets down to about 52%. Second, we have recurring cash flows coming in approximately $80 million, which is our current AFFO run rate. A large part of this is earmarked for paying our common and preferred dividends, which leaves about $30 million available for growth investments. Third, we expect to generate about $320 million from our legacy residential portfolio, and we have liquidity availability of about $511 million, as well as cash on hand, which brings total liquidity of approximately $830 million. This should comfortably allow us to fund our growth and our equity commitments. Let's turn over to the next slide and let's summarize what we've learned today. First, single-family rental business. This is our top priority for capital allocation. We have room to capture significant loss to lease valued at over $30 million. We also have room to enhance our revenue from ancillary rev services, and that should provide about $6 million of annual contributions. At the same time, we're focused on keeping costs to maintain low and stable. We see a vast acquisition opportunity available and incredibly compelling spreads between acquisition cap rates and debt financing. In the U.S. and Canada multifamily business, we are focusing on leveraging our central operating platform by fully internalizing our property management functions in the U.S. We also plan to leverage third-party capital to create value from our development pipeline in Canada, where we expect to have three assets stabilized by the end of 2022. Lastly, to fund our growth, we have significant pipeline of fundraising opportunities. As Evelyne just mentioned, over $1.2 billion of potential third-party capital committed. This also can earn us potentially meaningful fee income of over $10 million. We are in a strong liquidity position to fund our growth and also reduce our debt. We will use third-party capital strategically. However, we do consider ourselves as owners and operators, and we invest our balance sheet first. Now allow me to hand it over to Wojtek, but before I do that, I also want to thank Wojtek and Charlotte and the rest of the team for putting such a great presentation together today. We're also here to answer all your questions. Wojtek, why don't we go back to Q&A now? Thanks, Wissam. All right. We're going to do our best to handle as many questions as we can. Let's start off with work from home. How is Tricon thinking about the impact of work from home and the shift to the Sun Belt/suburbs for its own staff? Sherrie, you want to take that one? I'll chime in after. Yeah. Absolutely. A lot of us had talked, if you had said to us back in January, February of last year, "Wow, how long do you think it would take to move your entire workforce to work from home without missing a beat?" We would have probably told you three to six months. The fact of the matter is, we did it in about 72 hours, and we truly have not missed a beat. We care very deeply about our employees. We do regular check-ins. We phone call actually every single employee every few months to make sure that everybody is doing okay. I think a lot of it is really due to the culture that we spent so much time building that our employees feel very connected to us. We have heard from so many of them that had said, I think it was Alan who said we have not laid off a single employee during this pandemic. Because we give that kind of commitment to our employees, our employees are giving back to us 110%. They're doing everything they can to make Tricon tremendously successful. Yeah, I'll add to that. Thank you, Sherrie. Look, we're absolutely open to having a more flexible work arrangement as we get through this pandemic. We haven't made any decisions yet. We always canvas our workforce to get a sense of what's going to be best for them, how they're going to be most productive. I could see us having an environment where maybe one day or even two days a week, people are able to work from home. Right? Some people have really long commutes. That helps them. It helps save our environment. It allows them to have a more flexible work arrangement if they're taking care of their children. We think this can be a win-win. We still want to have physical space. We believe in offices. We want to get our team together because this is a very creative and innovative culture, and we need to get people together in order to foster that. That's why we're creating a brand new office in Orange County. Hopefully when we get together next live, we'll be able to take you through that space and introduce what we're doing in Orange County. In Toronto actually, we're also investing in more space here for our operations and development team. I think there's great opportunities to come out of this pandemic, and we're going to take advantage of it. Thank you, Gary and Sherrie. Next question, with such low turnover, how do you manage the risk of deferred maintenance expense that could show up downstream? Well, I think. Yeah. Oh, Kevin, you want to go first? Go ahead. Go ahead. All right. Sorry. I'll just start. You go. All right. Kevin first, Gary next. Sorry. When we go into homes, and this is one of the reasons why we're also pushing for more work orders done by our own people, is when we go into a home, not only are we going to address the specific work order, we'll take a health assessment of the overall home. We'll walk the home and see what other things might be wrong with it and address as many of the issues right there while our employee is in the house. If there are things that can't be addressed that time, they annotate it, they put it into our TriForce, and then we plan to do it within the next couple of weeks. The other thing that, as I mentioned earlier on the call, that we're doing is we're going to be kicking off a preventative maintenance program where our staff is going to go out systematically in an organized fashion to hit every home at least once a year for this exact purpose in being able to address things because people are staying in their homes four years, in some cases five years. We don't want to be caught behind. Yeah, I think the other thing. Over to you, Gary. Sorry, yeah, there's a bit of a lag with the technology here. Kevin, you should've gone first anyway. The other thing I would say, and Connor Doss talked about this is, and we're so excited about it and I think we're probably the first SFR company to do this. We're using 3D mapping technology to catalog all the physical assets in our home. With that information, we know the useful life of all the components across our portfolio, and we can plan for each year what we think we're going to spend on replacing water heaters or air conditioners or other major components in the home. That's in our budget. We have very detailed annual budgets, and we use that to inform what we think our deferred renovation expense will be each year. Thank you. Next question, as we think about your 10% FFO growth target, does that assume any acquisitions? In other words, is 10% FFO achievable with no acquisitions and 4%-5% NOI growth in the current portfolio? The 10% per share target included acquisitions in our JV-1 or SFR JV-1, completing that and completing everything we had ongoing at the time. We set that target, nothing new. Right? Evelyne talked about the incredible third-party fundraising we're going to do in JV 2, Homebuilder Direct. All of that is accretive. We've got incredible torque in our business and part of it is also because we have overhead in place that we believe we really can scale. We talked about cost to maintain. We feel we can keep it fairly stable. The overall overhead, we also feel we can keep relatively stable as we continue to grow. That torque will come through in our FFO per share. On a related question, how much spend for operations and proptech is behind you, and how do you manage that spend going forward relative to revenues? Wissam, I'm going to let you take that tricky question. Yeah, no problem. When we think about proptech and investments, we allocate about 1% of our revenue to new ideas. These are new ideas that we have an innovation lab that tests new ideas and only a select few actually make it to implementation. In addition to that, in 2021 and 2022 as an example, we have a capital budget of $ 15 million to implement some of these new projects. That's about 3% of revenues. This implementation's really allowed us to invest in infrastructure programs, rolling out certain items that we've discussed, as well as focus on continued innovation and continued improvements. We do focus on both the innovation lab as well as putting technology in place right away. Thanks, Wissam. Wojtek, I saw there was another question about whether we would roll out our proptech and sell it, and we've got no plans to do that right now. This is proprietary technology for ourselves. It allows us to run our business better. There's no plans to white label what we do. I think one of the reasons we're very efficient with what we spend on R&D is because we're trying to solve active problems. It's not like there's just a black box and let's spend a ton of money on R&D and see what sticks. Every step of the way we're trying to solve problems and then apply the technology to solve that problem so we can be more efficient with it. The other thing is to create white label, you really need to understand the systems that everyone else is working with, what GL, what database. You've got to make it look and be incredibly user-friendly. There's a ton of money that goes into that. That's what software companies do. We're not a software company, but we are applying proptech, I think very efficiently and thoughtfully to make our business better. Thanks, Gary. The last thing I would add, I think part of the question was how much is our proptech and innovation behind us? I would say it's still just the beginning. There are a lot of different ideas that we have that we'd like to implement over the next five years, and it'll be really exciting. As Gary was saying, it's all very judiciously placed. We're thinking about it. Pretty exciting things we're going to be offering our residents in the next five years. All right. Thanks, Kevin. We lost a little bit of your answer there, but I think we got the gist. I want to be respectful of everyone's time, so maybe one more fun question that we always like. Are there any markets in Canada where SFR could work? Gary. Yes, as long as you like a 1% or 2% cap rate. Maybe the answer then is no. Why would we invest in Canada when we can get 5%-6% cap rates? You talked about this, Wojtek, the spread we're capturing to in-place financing or where we can finance is unbelievable. From a capital allocation perspective, the vast majority of what we're going to do is focused on SFR, and we're incredibly excited about that business, and obviously, so is third-party capital. Wojtek, if this is it, I just wanted to thank you and Charlotte for putting together this wonderful production and your teams, and I wanted to thank everybody on the call for your participation and your support. You heard about how excited we are about our culture, our tech-enabled operating platform, how much runway we have ahead for growth. This is going to be the most prolific period of Tricon's history, the next six months. Lots of announcements coming down the pipe. Thank you again for all your support. If you're not a holder, now's the time, get on board, and we look forward to seeing you hopefully next year live in Orange County. Wojtek, any last remarks? We're back to you to close out. Thank you. Thank you to everyone. As always, we're here. If you have additional questions, do not hesitate to email us. We're there for you. Have a great day, everyone. Thank you for joining us.