Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the
"Company"), the nation's premier single-family home leasing
company, today announced its Q2 2022 financial and operating
results.
Second Quarter 2022 Highlights
- Year over year, total revenues increased 13.4% to $557 million,
property operating and maintenance costs increased 8.7% to $191
million, net income available to common stockholders increased
83.9% to $111 million, and net income per diluted common share
increased 71.2% to $0.18.
- Year over year, Core FFO per share increased 13.2% to $0.42,
and AFFO per share increased 11.9% to $0.36.
- Same Store NOI increased 12.4% year over year on 10.4% Same
Store Core Revenues growth and 6.2% Same Store Core Operating
Expenses growth.
- Same Store Average Occupancy was 98.0%, down 40 basis points
year over year.
- Same Store new lease rent growth of 16.7% and Same Store
renewal rent growth of 10.2% drove Same Store blended rent growth
of 11.8%, up 380 basis points year over year.
- Acquisitions by the Company and the Company's joint ventures
totaled 955 homes for $426 million while dispositions totaled 183
homes for $74 million.
- As previously announced, the Company entered into a new $725
million seven-year unsecured term loan on June 22, 2022. The
sustainability-linked term loan bears interest at rates based on
the Company’s senior unsecured credit rating, which equated to an
interest rate of Adjusted Term SOFR plus 124 basis points at the
time of closing based on the Company’s current credit ratings.
- As previously announced, the Company closed a public offering
on April 5, 2022 of $600 million aggregate principal amount of
4.150% senior notes due in 2032 (the "Notes"). The Notes were
priced at 99.739% of the principal amount and will mature on April
15, 2032. Net proceeds were used to voluntarily prepay secured
indebtedness.
President & Chief Executive Officer Dallas Tanner
comments:
"We're pleased to deliver another outstanding quarter of
resident service and financial results. Strong housing market
fundamentals across the country continue to drive year over year
new lease and renewal rent growth, while occupancy, resident
retention and income-to-rent ratio for new residents remain strong.
We're proud to offer high-quality, professionally managed homes and
a valuable housing choice to the increasing share of Americans who
want to lease a home. As a result of excellent execution through
the first half of the year, and supply and demand fundamentals
remaining favorable in our markets, we have increased our guidance
expectations for the full year. Our new guidance includes a 100
basis point increase at the midpoint for Same Store NOI to a range
of 10.0% to 11.5%, and a $0.03 per share increase at the midpoint
for Core FFO to a range of $1.66 to $1.72 per share."
Financial Results
Net Income, FFO, Core FFO, and AFFO Per
Share — Diluted
Q2 2022
Q2 2021
YTD 2022
YTD 2021
Net income
$
0.18
$
0.11
$
0.33
$
0.21
FFO
0.39
0.32
0.77
0.65
Core FFO
0.42
0.37
0.82
0.73
AFFO
0.36
0.32
0.71
0.63
Net Income
Net income per share for Q2 2022 was $0.18, compared to net
income per share of $0.11 for Q2 2021. Total revenues and total
property operating and maintenance expenses for Q2 2022 were $557
million and $191 million, respectively, compared to $492 million
and $175 million, respectively, for Q2 2021.
Net income per share for YTD 2022 was $0.33, compared to net
income per share of $0.21 for YTD 2021. Total revenues and total
property operating and maintenance expenses for YTD 2022 were
$1,090 million and $373 million, respectively, compared to $967
million and $344 million, respectively, for YTD 2021.
Core FFO
Year over year, Core FFO per share for Q2 2022 increased 13.2%
to $0.42, primarily due to NOI growth.
Year over year, Core FFO per share for YTD 2022 increased 13.4%
to $0.82, primarily due to NOI growth.
AFFO
Year over year, AFFO per share for Q2 2022 increased 11.9% to
$0.36, primarily due to the increase in Core FFO per share
described above.
Year over year, AFFO per share for YTD 2022 increased 11.9% to
$0.71, primarily due to the increase in Core FFO per share
described above.
Operating Results
Same Store Operating Results
Snapshot
Number of homes in Same Store
Portfolio:
75,215
Q2 2022
Q2 2021
YTD 2022
YTD 2021
Core Revenues growth (year over year)
10.4 %
10.0 %
Core Operating Expenses growth (year over
year)
6.2 %
5.3 %
NOI growth (year over year)
12.4 %
12.2 %
Average Occupancy
98.0 %
98.4 %
98.1 %
98.4 %
Bad debt % of gross rental revenues
(1)
0.7 %
1.7 %
1.2 %
1.9 %
Turnover Rate
5.8 %
6.8 %
10.3 %
12.1 %
Rental Rate Growth (lease-over-lease):
Renewals
10.2 %
5.8 %
10.0 %
5.1 %
New Leases
16.7 %
13.7 %
15.8 %
11.1 %
Blended
11.8 %
8.0 %
11.4 %
6.8 %
(1)
Invitation Homes reserves
residents' accounts receivables balances that are aged greater than
30 days as bad debt, under the rationale that a resident's security
deposit should cover approximately the first 30 days of
receivables. For all resident receivables balances aged greater
than 30 days, the amount reserved as bad debt is 100% of
outstanding receivables from the resident, less the amount of the
resident's security deposit on hand. For the purpose of determining
age of receivables, charges are considered to be due based on the
terms of the original lease, not based on a payment plan if one is
in place. All rental revenues and other property income, in both
Total Portfolio and Same Store Portfolio presentations, are
reflected net of bad debt.
Revenue Collections Update
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Pre-COVID Average (2)
Revenues collected % of revenues due:
(1)
Revenues collected in same month
billed
92 %
91 %
92 %
92 %
96 %
Late collections of prior month
billings
7 %
6 %
6 %
5 %
3 %
Total collections
99 %
97 %
98 %
97 %
99 %
(1)
Includes both rental revenues and other
property income. Rent is considered to be due based on the terms of
the original lease, not based on a payment plan if one is in place.
Security deposits retained to offset rents due are not included as
revenue collected. See "Same Store Operating Results Snapshot,"
footnote (1), for detail on the Company's bad debt policy.
(2)
Represents the period from
October 2019 to March 2020.
Same Store NOI
For the Same Store Portfolio of 75,215 homes, Same Store NOI for
Q2 2022 increased 12.4% year over year on Same Store Core Revenues
growth of 10.4% and Same Store Core Operating Expenses growth of
6.2%.
YTD 2022 Same Store NOI increased 12.2% year over year on Same
Store Core Revenues growth of 10.0% and Same Store Core Operating
Expenses growth of 5.3%.
Same Store Core Revenues
Same Store Core Revenues growth for Q2 2022 of 10.4% year over
year was primarily driven by a 9.4% increase in Average Monthly
Rent, a 100 basis points year over year improvement in bad debt as
a percentage of gross rental revenue, and a 19.9% increase in other
income, net of resident recoveries.
YTD 2022 Same Store Core Revenue growth of 10.0% year over year
was primarily driven by an 8.9% increase in average monthly rent, a
70 basis points year over year improvement in bad debt as a
percentage of gross rental revenues, and a 31.6% increase in other
income, net of resident recoveries.
Same Store Core Operating Expenses
Same Store Core Operating Expenses for Q2 2022 increased 6.2%
year over year, primarily driven by a 4.4% increase in Same Store
fixed expenses and a 15.2% increase in repairs and maintenance
expense, net of resident recoveries.
YTD 2022 Same Store Core operating expenses increased 5.3% year
over year, primarily driven by a 4.2% increase in Same Store fixed
expenses and a 16.9% increase in repairs and maintenance expense,
net of resident recoveries.
Investment Management Activity
Acquisitions for Q2 2022 totaled 955 homes for $426 million
through diversified acquisition channels. This included 511 wholly
owned homes for $227 million in addition to 444 homes for $199
million in the Company's joint ventures. Dispositions for Q2 2022
included 176 wholly owned homes for gross proceeds of $70 million
and seven homes for gross proceeds of $4 million in the Company's
joint ventures.
Year to date through June 30, 2022, the Company acquired 1,777
homes for $766 million, including 1,029 wholly owned homes for $445
million and 748 homes for $321 million in the Company's joint
ventures. The Company also sold 330 homes for $128 million,
including 317 wholly owned homes for $122 million and 13 homes for
$6 million in the Company's joint ventures.
Balance Sheet and Capital Markets Activity
As of June 30, 2022, the Company had $1,848 million in available
liquidity through a combination of unrestricted cash and undrawn
capacity on its revolving credit facility and term loan. The
Company's total indebtedness as of June 30, 2022 was $7,826
million, consisting of $5,200 million of unsecured debt and $2,626
million of secured debt. Net debt / TTM adjusted EBITDAre was 5.9x
at June 30, 2022, down from 6.2x as of December 31, 2021.
As previously announced, the Company entered into a new $725
million seven-year unsecured term loan on June 22, 2022. The
sustainability-linked term loan bears interest at rates based on
the Company’s senior unsecured credit rating, which equated to an
interest rate of Adjusted Term SOFR plus 124 basis points at the
time of closing based on the Company’s current credit ratings.
Pricing of the term loan benefited from the Company meeting certain
ESG performance targets as determined via an independent
third-party evaluation, similar to its existing five-year unsecured
credit facility. The new seven-year delayed draw term loan allowed
the Company to elect to receive a portion of the proceeds at
closing, with the opportunity to receive the remaining proceeds in
up to three additional draws over a six month period. The Company
received proceeds of $150 million in its initial draw at closing,
and used these initial proceeds, along with cash on hand, as part
of a series of transactions to fully repay its IH 2018-2
securitization.
As previously announced, the Company closed a public offering on
April 5, 2022 of $600 million aggregate principal amount of 4.150%
senior notes due in 2032. The Notes were priced at 99.739% of the
principal amount and will mature on April 15, 2032. Net proceeds
were used to voluntarily prepay secured indebtedness.
Dividend
As previously announced on July 22, 2022, the Company's Board of
Directors declared a quarterly cash dividend of $0.22 per share of
common stock. The dividend will be paid on or before August 26,
2022, to stockholders of record as of the close of business on
August 9, 2022.
FY 2022 Guidance Update
FY 2022 Guidance
Current
Previous
FY 2022
FY 2022
Guidance
Guidance
Core FFO per share — diluted
$1.66 - $1.72
$1.62 - $1.70
AFFO per share — diluted
$1.41 - $1.47
$1.38 - $1.46
Same Store Core Revenues growth
9.0% - 10.0%
8.0% - 9.0%
Same Store Core Operating Expenses
growth
6.0% - 7.0%
5.5% - 6.5%
Same Store NOI growth
10.0% - 11.5%
9.0% - 10.5%
Note: The Company does not provide guidance for the most
comparable GAAP financial measures of net income (loss), total
revenues, and property operating and maintenance expense, or a
reconciliation of the forward-looking non-GAAP financial measures
of Core FFO per share, AFFO per share, Same Store Core Revenues
growth, Same Store Core Operating Expenses growth, and Same Store
NOI growth to the comparable GAAP financial measures because it is
unable to reasonably predict certain items contained in the GAAP
measures, including non-recurring and infrequent items that are not
indicative of the Company's ongoing operations. Such items include,
but are not limited to, impairment on depreciated real estate
assets, net (gain)/loss on sale of previously depreciated real
estate assets, share-based compensation, casualty loss, non-Same
Store revenues, and non-Same Store operating expenses. These items
are uncertain, depend on various factors, and could have a material
impact on the Company's GAAP results for the guidance period.
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m.
Eastern Time on July 28, 2022, to discuss results for the second
quarter of 2022. The domestic dial-in number is 1-844-200-6205, and
the international dial-in number is 1-929-526-1599. The access code
is 842872. An audio webcast may be accessed at www.invh.com. A
replay of the call will be available through August 25, 2022, and
can be accessed by calling 1-866-813-9403 (domestic) or
1-929-458-6194 (international) and using the replay access code
769236, or by using the link at www.invh.com.
Supplemental Information
The full text of the Earnings Release and Supplemental
Information referenced in this release are available on Invitation
Homes' Investor Relations website at www.invh.com.
Glossary & Reconciliations of Non-GAAP Financial and
Other Operating Measures
Financial and operating measures found in the Earnings Release
and Supplemental Information include certain measures used by
Invitation Homes management that are measures not defined under
accounting principles generally accepted in the United States
("GAAP"). These measures are defined herein and, as applicable,
reconciled to the most comparable GAAP measures.
About Invitation Homes
Invitation Homes is the nation's premier single-family home
leasing company, meeting changing lifestyle demands by providing
access to high-quality, updated homes with valued features such as
close proximity to jobs and access to good schools. The company's
mission, "Together with you, we make a house a home," reflects its
commitment to providing homes where individuals and families can
thrive and high-touch service that continuously enhances residents'
living experiences.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), which include, but are not limited
to, statements related to the Company's expectations regarding the
performance of the Company's business, its financial results, its
liquidity and capital resources, and other non-historical
statements. In some cases, you can identify these forward-looking
statements by the use of words such as “outlook,” “guidance,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “could,” “seeks,” “projects,” “predicts,” “intends,”
“plans,” “estimates,” “anticipates,” or the negative version of
these words or other comparable words. Such forward-looking
statements are subject to various risks and uncertainties,
including, among others, risks inherent to the single-family rental
industry and the Company's business model, macroeconomic factors
beyond the Company's control, competition in identifying and
acquiring properties, competition in the leasing market for quality
residents, increasing property taxes, homeowners’ association and
insurance costs, the Company's dependence on third parties for key
services, risks related to the evaluation of properties, poor
resident selection and defaults and non-renewals by the Company's
residents, performance of the Company's information technology
systems, risks related to the Company's indebtedness, and risks
related to the potential negative impact of unfavorable global and
United States economic conditions (including inflation and interest
rates), uncertainty in financial markets, geopolitical tensions,
natural disasters, climate change, and public health crises,
including the ongoing COVID-19 pandemic, on the Company’s financial
condition, results of operations, cash flows, business, associates,
and residents. Accordingly, there are or will be important factors
that could cause actual outcomes or results to differ materially
from those indicated in these statements. The Company believes
these factors include, but are not limited to, those described
under Part I. Item 1A. “Risk Factors” of the Annual Report on Form
10-K for the year ended December 31, 2021, as such factors may be
updated from time to time in the Company's periodic filings with
the Securities and Exchange Commission (the "SEC"), which are
accessible on the SEC’s website at www.sec.gov. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release and in the Company's other periodic filings. The
forward-looking statements speak only as of the date of this press
release, and the Company expressly disclaims any obligation or
undertaking to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except to the extent otherwise required
by law.
Consolidated Balance Sheets
($ in thousands, except shares and per
share data)
June 30, 2022
December 31,
2021
(unaudited)
Assets:
Investments in single-family residential
properties, net
$
17,125,185
$
16,935,322
Cash and cash equivalents
272,708
610,166
Restricted cash
206,888
208,692
Goodwill
258,207
258,207
Investments in unconsolidated joint
ventures
244,730
130,395
Other assets, net
399,266
395,064
Total assets
$
18,506,984
$
18,537,846
Liabilities:
Mortgage loans, net
$
2,211,739
$
3,055,853
Secured term loan, net
401,421
401,313
Unsecured notes, net
2,516,359
1,921,974
Term loan facilities, net
2,624,412
2,478,122
Revolving facility
—
—
Convertible senior notes, net
—
141,397
Accounts payable and accrued expenses
237,915
193,633
Resident security deposits
171,413
165,167
Other liabilities
61,736
341,583
Total liabilities
8,224,995
8,699,042
Equity:
Stockholders' equity
Preferred stock, $0.01 par value per
share, 900,000,000 shares authorized, none outstanding as
of June 30, 2022 and December 31, 2021
—
—
Common stock, $0.01 par value per share,
9,000,000,000 shares authorized, 610,359,909
and 601,045,438 outstanding as of June 30,
2022 and December 31, 2021, respectively
6,104
6,010
Additional paid-in capital
11,113,146
10,873,539
Accumulated deficit
(860,275
)
(794,869
)
Accumulated other comprehensive loss
(20,285
)
(286,938
)
Total stockholders' equity
10,238,690
9,797,742
Non-controlling interests
43,299
41,062
Total equity
10,281,989
9,838,804
Total liabilities and equity
$
18,506,984
$
18,537,846
Consolidated Statements of
Operations
($ in thousands, except shares and per
share amounts)
Q2 2022
Q2 2021
YTD 2022
YTD 2021
(unaudited)
(unaudited)
(unaudited)
Revenues:
Rental revenues
$
505,936
$
449,113
$
989,931
$
887,246
Other property income
48,605
41,505
94,809
77,826
Management fee revenues
2,759
1,015
4,870
1,786
Total revenues
557,300
491,633
1,089,610
966,858
Expenses:
Property operating and maintenance
190,680
175,422
372,949
343,795
Property management expense
21,814
17,696
42,781
33,538
General and administrative
19,342
19,828
36,981
36,778
Interest expense
74,840
80,764
149,229
164,170
Depreciation and amortization
158,572
145,280
314,368
289,781
Impairment and other
1,355
980
2,870
1,336
Total expenses
466,603
439,970
919,178
869,398
Gains (losses) on investments in equity
securities, net
(172
)
(7,002
)
(3,204
)
(10,142
)
Other, net
(3,827
)
(1,903
)
(3,233
)
(1,673
)
Gain on sale of property, net of tax
27,508
17,919
45,534
32,403
Income (loss) from investments in
unconsolidated joint ventures
(2,701
)
11
(5,021
)
362
Net income
111,505
60,688
204,508
118,410
Net income attributable to non-controlling
interests
(542
)
(350
)
(930
)
(705
)
Net income attributable to common
stockholders
110,963
60,338
203,578
117,705
Net income available to participating
securities
(148
)
(96
)
(368
)
(191
)
Net income available to common
stockholders — basic and diluted
$
110,815
$
60,242
$
203,210
$
117,514
Weighted average common shares
outstanding — basic
610,331,643
567,931,472
608,381,768
567,655,034
Weighted average common shares
outstanding — diluted
611,620,475
569,283,166
609,775,270
569,056,182
Net income per common share —
basic
$
0.18
$
0.11
$
0.33
$
0.21
Net income per common share —
diluted
$
0.18
$
0.11
$
0.33
$
0.21
Dividends declared per common
share
$
0.22
$
0.17
$
0.44
$
0.34
Average Monthly Rent
Average monthly rent represents average monthly rental income
per home for occupied properties in an identified population of
homes over the measurement period, and reflects the impact of
non-service rental concessions and contractual rent increases
amortized over the life of the lease.
Average Occupancy
Average occupancy for an identified population of homes
represents (i) the total number of days that the homes in such
population were occupied during the measurement period, divided by
(ii) the total number of days that the homes in such population
were owned during the measurement period.
Core Operating Expenses
Core operating expenses for an identified population of homes
reflect property operating and maintenance expenses, excluding any
expenses recovered from residents.
Core Revenues
Core revenues for an identified population of homes reflects
total revenues, net of any resident recoveries.
EBITDA, EBITDAre, and Adjusted EBITDAre
EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental,
non-GAAP measures often utilized to evaluate the performance of
real estate companies. The Company defines EBITDA as net income or
loss computed in accordance with accounting principles generally
accepted in the United States (“GAAP”) before the following items:
interest expense; income tax expense; depreciation and
amortization; and adjustments for unconsolidated joint ventures.
National Association of Real Estate Investment Trusts ("Nareit")
recommends as a best practice that REITs that report an EBITDA
performance measure also report EBITDAre. The Company defines
EBITDAre, consistent with the Nareit definition, as EBITDA, further
adjusted for gain on sale of property, net of tax and impairment on
depreciated real estate investments. Adjusted EBITDAre is defined
as EBITDAre before the following items: share-based compensation
expense; severance; casualty (gains) losses, net; (gains) losses on
investments in equity securities, net; and other income and
expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as
supplemental financial performance measures by management and by
external users of the Company's financial statements, such as
investors and commercial banks. Set forth below is additional
detail on how management uses EBITDA, EBITDAre, and Adjusted
EBITDAre as measures of performance.
The GAAP measure most directly comparable to EBITDA, EBITDAre,
and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and
Adjusted EBITDAre are not used as measures of the Company's
liquidity and should not be considered alternatives to net income
or loss or any other measure of financial performance presented in
accordance with GAAP. The Company's EBITDA, EBITDAre, and Adjusted
EBITDAre may not be comparable to the EBITDA, EBITDAre, and
Adjusted EBITDAre of other companies due to the fact that not all
companies use the same definitions of EBITDA, EBITDAre, and
Adjusted EBITDAre. Accordingly, there can be no assurance that the
Company's basis for computing these non-GAAP measures is comparable
with that of other companies. See below for a reconciliation of
GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core
FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP
measures often utilized to evaluate the performance of real estate
companies. FFO is defined by Nareit as net income or loss (computed
in accordance with GAAP) excluding gains or losses from sales of
previously depreciated real estate assets, plus depreciation,
amortization and impairment of real estate assets, and adjustments
for unconsolidated joint ventures. In calculating per share
amounts, Core FFO and AFFO reflect convertible debt securities in
the form in which they were outstanding during the period.
The Company believes that FFO is a meaningful supplemental
measure of the operating performance of its business because
historical cost accounting for real estate assets in accordance
with GAAP assumes that the value of real estate assets diminishes
predictably over time, as reflected through depreciation and
amortization. Because real estate values have historically risen or
fallen with market conditions, management considers FFO an
appropriate supplemental performance measure as it excludes
historical cost depreciation and amortization, impairment on
depreciated real estate investments, gains or losses related to
sales of previously depreciated homes, as well non-controlling
interests, from GAAP net income or loss.
The GAAP measure most directly comparable to Core FFO and
Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are
not used as measures of the Company's liquidity and should not be
considered alternatives to net income or loss or any other measure
of financial performance presented in accordance with GAAP. The
Company's Core FFO and Adjusted FFO may not be comparable to the
Core FFO and Adjusted FFO of other companies due to the fact that
not all companies use the same definition of Core FFO and Adjusted
FFO. Accordingly, there can be no assurance that the Company's
basis for computing this non-GAAP measures is comparable with that
of other companies. See "Reconciliation of FFO, Core FFO, and
Adjusted FFO" for a reconciliation of GAAP net income to FFO, Core
FFO, and Adjusted FFO.
Net Operating Income (NOI)
NOI is a non-GAAP measure often used to evaluate the performance
of real estate companies. The Company defines NOI for an identified
population of homes as rental revenues and other property income
less property operating and maintenance expense (which consists
primarily of property taxes, insurance, HOA fees (when applicable),
market-level personnel expenses, repairs and maintenance, leasing
costs, and marketing expense). NOI excludes: interest expense;
depreciation and amortization; property management expense; general
and administrative expense; impairment and other; gain on sale of
property, net of tax; (gains) losses on investments in equity
securities, net; other income and expenses; management fee
revenues; and income from investments in unconsolidated joint
ventures.
The GAAP measure most directly comparable to NOI is net income
or loss. NOI is not used as a measure of liquidity and should not
be considered as an alternative to net income or loss or any other
measure of financial performance presented in accordance with GAAP.
The Company's NOI may not be comparable to the NOI of other
companies due to the fact that not all companies use the same
definition of NOI. Accordingly, there can be no assurance that the
Company's basis for computing this non-GAAP measure is comparable
with that of other companies.
The Company believes that Same Store NOI is also a meaningful
supplemental measure of the Company's operating performance for the
same reasons as NOI and is further helpful to investors as it
provides a more consistent measurement of the Company's performance
across reporting periods by reflecting NOI for homes in its Same
Store Portfolio.
See below for a reconciliation of GAAP net income to NOI for the
Company's total portfolio and NOI for its Same Store Portfolio.
Recurring Capital Expenditures or Recurring CapEx
Recurring Capital Expenditures or Recurring CapEx represents
general replacements and expenditures required to preserve and
maintain the value and functionality of a home and its systems as a
single-family rental.
Rental Rate Growth
Rental rate growth for any home represents the percentage
difference between the monthly rent from an expiring lease and the
monthly rent from the next lease, and, in each case, reflects the
impact of any amortized non-service rent concessions and amortized
contractual rent increases. Leases are either renewal leases, where
the Company's current resident chooses to stay for a subsequent
lease term, or a new lease, where the Company's previous resident
moves out and a new resident signs a lease to occupy the same
home.
Revenue Collections
Revenue collections represent the total cash received in a given
period for rental revenues and other property income (including
receipt of late payments that were billed in prior months) divided
by the total amounts billed in that period. When a payment plan is
in place with a resident, amounts are considered to be billed at
the time they would have been billed based on the terms of the
original lease, not the terms of the payment plan. "Historical
average" revenue collections as a percentage of billings refer to
revenue collections as a percentage of billings for the period from
October 2019 through and including March 2020.
Same Store / Same Store Portfolio
Same Store or Same Store portfolio includes, for a given
reporting period, wholly owned homes that have been stabilized and
seasoned, excluding homes that have been sold, homes that have been
identified for sale to an owner occupant and have become vacant,
homes that have been deemed inoperable or significantly impaired by
casualty loss events or force majeure, homes acquired in portfolio
transactions that are deemed not to have undergone renovations of
sufficiently similar quality and characteristics as the existing
Invitation Homes Same Store portfolio, and homes in markets that
the Company has announced an intent to exit where the Company no
longer operates a significant number of homes.
Homes are considered stabilized if they have (i) completed an
initial renovation and (ii) entered into at least one post-initial
renovation lease. An acquired portfolio that is both leased and
deemed to be of sufficiently similar quality and characteristics as
the existing Invitation Homes Same Store portfolio may be
considered stabilized at the time of acquisition.
Homes are considered to be seasoned once they have been
stabilized for at least 15 months prior to January 1st of the year
in which the Same Store portfolio was established.
The Company believes presenting information about the portion of
its portfolio that has been fully operational for the entirety of a
given reporting period and its prior year comparison period
provides investors with meaningful information about the
performance of the Company's comparable homes across periods and
about trends in its organic business.
Total Homes / Total Portfolio
Total homes or total portfolio refers to the total number of
homes owned, whether or not stabilized, and excludes any properties
previously acquired in purchases that have been subsequently
rescinded or vacated. Unless otherwise indicated, total homes or
total portfolio refers to the wholly owned homes and excludes homes
owned in joint ventures.
Turnover Rate
Turnover rate represents the number of instances that homes in
an identified population become unoccupied in a given period,
divided by the number of homes in such population.
Reconciliation of FFO, Core FFO, and
AFFO
($ in thousands, except shares and per
share amounts) (unaudited)
FFO Reconciliation
Q2 2022
Q2 2021
YTD 2022
YTD 2021
Net income available to common
stockholders
$
110,815
$
60,242
$
203,210
$
117,514
Net income available to participating
securities
148
96
368
191
Non-controlling interests
542
350
930
705
Depreciation and amortization on real
estate assets
156,433
143,607
310,073
286,391
Impairment on depreciated real estate
investments
36
93
137
524
Net gain on sale of previously depreciated
investments in real estate
(27,508
)
(17,919
)
(45,534
)
(32,403
)
Depreciation and net gain on sale of
investments in unconsolidated joint ventures
916
142
1,416
(90
)
FFO
$
241,382
$
186,611
$
470,600
$
372,832
Core FFO Reconciliation
Q2 2022
Q2 2021
YTD 2022
YTD 2021
FFO
$
241,382
$
186,611
$
470,600
$
372,832
Non-cash interest expense, including the
Company's share from unconsolidated joint ventures
6,498
8,169
12,968
16,787
Share-based compensation expense
7,989
9,206
14,635
15,020
Severance expense
189
160
207
274
Casualty (gains) losses, net
1,319
887
2,733
812
Losses on investments in equity
securities, net
172
7,002
3,204
10,142
Core FFO
$
257,549
$
212,035
$
504,347
$
415,867
AFFO Reconciliation
Q2 2022
Q2 2021
YTD 2022
YTD 2021
Core FFO
$
257,549
$
212,035
$
504,347
$
415,867
Recurring capital expenditures, including
the Company's share from unconsolidated joint ventures
(37,544
)
(28,714
)
(70,374
)
(53,189
)
Adjusted FFO
$
220,005
$
183,321
$
433,973
$
362,678
Net income available to common
stockholders
Weighted average common shares outstanding
— diluted
611,620,475
569,283,166
609,775,270
569,056,182
Net income per common share — diluted
$
0.18
$
0.11
$
0.33
$
0.21
FFO
Numerator for FFO per common share —
diluted
$
241,382
$
190,955
$
470,600
$
381,520
Weighted average common shares and OP
Units outstanding — diluted
614,569,431
587,982,707
612,648,238
587,906,276
FFO per share — diluted
$
0.39
$
0.32
$
0.77
$
0.65
Core FFO and Adjusted FFO
Weighted average common shares and OP
Units outstanding — diluted
614,569,431
572,822,015
612,648,238
572,745,584
Core FFO per share — diluted
$
0.42
$
0.37
$
0.82
$
0.73
AFFO per share — diluted
$
0.36
$
0.32
$
0.71
$
0.63
Reconciliation of Total Revenues to
Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Total revenues (Total
Portfolio)
$
557,300
$
532,310
$
520,225
$
509,532
$
491,633
Management fee revenues
(2,759
)
(2,111
)
(1,753
)
(1,354
)
(1,015
)
Total portfolio resident recoveries
(29,394
)
(28,762
)
(26,967
)
(27,972
)
(26,076
)
Total Core Revenues (Total
Portfolio)
525,147
501,437
491,505
480,206
464,542
Non-Same Store Core Revenues
(41,868
)
(34,771
)
(31,647
)
(29,343
)
(26,974
)
Same Store Core Revenues
$
483,279
$
466,666
$
459,858
$
450,863
$
437,568
Reconciliation of Total Revenues to
Same Store Total Revenues and Same Store Core Revenues, YTD
(in thousands) (unaudited)
YTD 2022
YTD 2021
Total revenues (Total
Portfolio)
$
1,089,610
$
966,858
Management fee revenues
(4,870
)
(1,786
)
Total portfolio resident recoveries
(58,156
)
(50,816
)
Total Core Revenues (Total
Portfolio)
1,026,584
914,256
Non-Same Store Core Revenues
(76,639
)
(50,575
)
Same Store Core Revenues
$
949,945
$
863,681
Reconciliation of Property Operating
and Maintenance Expenses to Same Store Core Operating Expenses,
Quarterly
(in thousands) (unaudited)
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Property operating and maintenance
expenses (Total Portfolio)
$
190,680
$
182,269
$
177,883
$
184,484
$
175,422
Total Portfolio resident recoveries
(29,394
)
(28,762
)
(26,967
)
(27,972
)
(26,076
)
Core Operating Expenses (Total
Portfolio)
161,286
153,507
150,916
156,512
149,346
Non-Same Store Core Operating Expenses
(12,425
)
(12,029
)
(10,411
)
(9,258
)
(9,232
)
Same Store Core Operating
Expenses
$
148,861
$
141,478
$
140,505
$
147,254
$
140,114
Reconciliation of Property Operating
and Maintenance to Same Store Operating Expenses and Same Store
Core Operating Expenses, YTD
(in thousands) (unaudited)
YTD 2022
YTD 2021
Property operating and maintenance
expenses (Total Portfolio)
$
372,949
$
343,795
Total Portfolio resident recoveries
(58,156
)
(50,816
)
Core Operating Expenses (Total
Portfolio)
314,793
292,979
Non-Same Store Core Operating Expenses
(24,454
)
(17,337
)
Same Store Core Operating
Expenses
$
290,339
$
275,642
Reconciliation of Net Income to Same
Store NOI, Quarterly
(in thousands) (unaudited)
Q2 2022
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Net income available to common
stockholders
$
110,815
$
92,395
$
74,476
$
69,108
$
60,242
Net income available to participating
securities
148
220
67
69
96
Non-controlling interests
542
388
328
318
350
Interest expense
74,840
74,389
79,121
79,370
80,764
Depreciation and amortization
158,572
155,796
151,660
150,694
145,280
Property management expense
21,814
20,967
20,173
17,886
17,696
General and administrative
19,342
17,639
19,668
19,369
19,828
Impairment and other
1,355
1,515
3,046
4,294
980
Gain on sale of property, net of tax
(27,508
)
(18,026
)
(14,558
)
(13,047
)
(17,919
)
Losses on investments in equity
securities, net
172
3,032
3,597
0
(4,319
)
0
7,002
Other, net
3,827
(594
)
2,654
1,508
1,903
Management fee revenues
(2,759
)
(2,111
)
(1,753
)
(1,354
)
(1,015
)
(Income) loss from investments in
unconsolidated joint ventures
2,701
2,320
2,110
(202
)
(11
)
NOI (Total Portfolio)
363,861
347,930
340,589
323,694
315,196
Non-Same Store NOI
(29,443
)
(22,742
)
(21,236
)
(20,085
)
(17,742
)
Same Store NOI
$
334,418
$
325,188
$
319,353
$
303,609
$
297,454
Reconciliation of Net Income to NOI and
Same Store NOI, YTD
(in thousands) (unaudited)
YTD 2022
YTD 2021
Net income available to common
stockholders
$
203,210
$
117,514
Net income available to participating
securities
368
191
Non-controlling interests
930
705
Interest expense
149,229
164,170
Depreciation and amortization
314,368
289,781
Property management expense
42,781
33,538
General and administrative
36,981
36,778
Impairment and other
2,870
1,336
Gain on sale of property, net of tax
(45,534
)
(32,403
)
Losses on investments in equity
securities, net
3,204
10,142
Other, net
3,233
1,673
Management fee revenues
(4,870
)
(1,786
)
(Income) loss from investments in
unconsolidated joint ventures
5,021
(362
)
NOI (Total Portfolio)
711,791
621,277
Non-Same Store NOI
(52,185
)
(33,238
)
Same Store NOI
$
659,606
$
588,039
Reconciliation of Net Income to EBITDA,
EBITDAre, and Adjusted EBITDAre
(in thousands, unaudited)
Q2 2022
Q2 2021
YTD 2022
YTD 2021
Net income available to common
stockholders
$
110,815
$
60,242
$
203,210
$
117,514
Net income available to participating
securities
148
96
368
191
Non-controlling interests
542
350
930
705
Interest expense
74,840
80,764
149,229
164,170
Interest expense in unconsolidated joint
ventures
859
225
1,451
299
Depreciation and amortization
158,572
145,280
314,368
289,781
Depreciation and amortization of real
estate assets in unconsolidated joint ventures
1,114
246
1,752
350
EBITDA
346,890
287,203
671,308
573,010
Gain on sale of property, net of tax
(27,508
)
(17,919
)
(45,534
)
(32,403
)
Impairment on depreciated real estate
investments
36
93
137
524
Net gain on sale of investments in
unconsolidated joint ventures
(186
)
(104
)
(316
)
(440
)
EBITDAre
319,232
269,273
625,595
540,691
Share-based compensation expense
7,989
9,206
14,635
15,020
Severance
189
160
207
274
Casualty (gains) losses, net
1,319
887
2,733
812
(Gains) losses on investments in equity
securities, net
172
7,002
3,204
10,142
Other, net
3,827
1,903
3,233
1,673
Adjusted EBITDAre
$
332,728
$
288,431
$
649,607
$
568,612
Trailing Twelve Months
(TTM)
Ended
June 30,
2022
December 31,
2021
Net income available to common
stockholders
$
346,794
$
261,098
Net income available to participating
securities
504
327
Non-controlling interests
1,576
1,351
Interest expense
307,720
322,661
Interest expense in unconsolidated joint
ventures
2,361
1,209
Depreciation and amortization
616,722
592,135
Depreciation and amortization of real
estate assets in unconsolidated joint ventures
2,706
1,304
EBITDA
1,278,383
1,180,085
Gain on sale of property, net of tax
(73,139
)
(60,008
)
Impairment on depreciated real estate
investments
263
650
Net gain on sale of investments in
unconsolidated joint ventures
(926
)
(1,050
)
EBITDAre
1,204,581
1,119,677
Share-based compensation expense
26,785
27,170
Severance
990
1,057
Casualty (gains) losses, net
9,947
8,026
(Gains) losses on investments in equity
securities, net
2,482
9,420
Other, net
7,395
5,835
Adjusted EBITDAre
$
1,252,180
$
1,171,185
Reconciliation of Net Debt / Trailing
Twelve Months (TTM) Adjusted EBITDAre
(in thousands, except for ratio)
(unaudited)
As of
As of
June 30, 2022
December 31, 2021
Mortgage loans, net
$
2,211,739
$
3,055,853
Secured term loan, net
401,421
401,313
Unsecured notes, net
2,516,359
1,921,974
Term loan facility, net
2,624,412
2,478,122
Revolving facility
—
—
Convertible senior notes, net
—
141,397
Total Debt per Balance Sheet
7,753,931
7,998,659
Retained and repurchased certificates
(116,940
)
(159,110
)
Cash, ex-security deposits and letters of
credit (1)
(306,049
)
(649,722
)
Deferred financing costs, net
57,448
50,146
Unamortized discounts on note payable
14,316
13,605
Net Debt (A)
$
7,402,706
$
7,253,578
For the Trailing
Twelve
For the Trailing
Twelve
Months (TTM) Ended
Months (TTM) Ended
June 30, 2022
December 31, 2021
Adjusted EBITDAre (B)
$
1,252,180
$
1,171,185
Net Debt / TTM Adjusted EBITDAre (A /
B)
5.9x
6.2x
(1)
Represents cash and cash
equivalents and the portion of restricted cash that excludes
security deposits and letters of credit
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005523/en/
Investor Relations Contact Scott McLaughlin 844.456.INVH
(4684) IR@InvitationHomes.com
Media Relations Contact Kristi DesJarlais 972.421.3587
Media@InvitationHomes.com
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