Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the
"Company"), the nation's premier single-family home leasing
company, today announced its Q1 2023 financial and operating
results.
First Quarter 2023 Highlights
- Year over year, total revenues increased 10.8% to $590 million,
property operating and maintenance costs increased 14.4% to $208
million, net income available to common stockholders increased
30.0% to $120 million, and net income per diluted common share
increased 29.0% to $0.20.
- Year over year, Core FFO per share increased 9.5% to $0.44, and
AFFO per share increased 9.0% to $0.38.
- Same Store NOI increased 5.0% year over year on 7.7% Same Store
Core Revenues growth and 14.0% Same Store Core Operating Expenses
growth.
- Revenue collections were approximately 99% of the Company's
historical average collection rate. Same Store bad debt as a
percentage of gross rental revenue was 2.0%, consistent with Q4
2022 as reported and a better result than anticipated.
- Same Store Average Occupancy was 97.8%, a 50 basis points
improvement over Q4 2022.
- Same Store renewal rent growth of 8.0% and Same Store new lease
rent growth of 5.7% drove Same Store blended rent growth of
7.3%.
- Acquisitions by the Company and the Company's joint ventures
totaled 194 homes for $67 million, primarily from the Company's
builder partners, while dispositions totaled 297 homes for $101
million.
- As previously announced in March 2023, the Company's issuer and
issue-level credit ratings were upgraded by S&P Global Ratings
to 'BBB' from 'BBB-' with a Stable outlook. In addition, as
previously announced in April 2023, Moody's Investors Service
revised the Company's rating outlook to 'Positive' from 'Stable'.
The Company has no debt reaching final maturity prior to 2026,
99.2% of its debt is fixed or swapped to fixed, and 83.1% of its
homes are unencumbered.
Chief Executive Officer Dallas Tanner comments:
"Our Q1 2023 results represent a strong start to the year.
Favorable supply and demand fundamentals continued, met by
excellent execution from our best-in-class teams and platform.
Looking ahead, we remain bullish on our business, which is backed
by the high-value proposition and exceptional service that we offer
our residents, along with what we believe is the strongest balance
sheet and liquidity position in the single-family rental sector.
With the benefits of a worry-free leasing lifestyle as attractive
as ever, and the low supply of well-located, high-quality for-lease
housing persisting in our markets, we believe we are well
positioned to continue delivering strong results."
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.
Financial Results
Net Income, FFO, Core FFO, and AFFO Per
Share — Diluted
Q1 2023
Q1 2022
Net income
$
0.20
$
0.15
FFO
0.42
0.38
Core FFO
0.44
0.40
AFFO
0.38
0.35
Net Income
Year over year, net income per diluted common share for Q1 2023
increased 29.0% to $0.20, primarily due to an increase in total
revenues.
Core FFO
Year over year, Core FFO per share for Q1 2023 increased 9.5% to
$0.44, primarily due to NOI growth.
AFFO
Year over year, AFFO per share for Q1 2023 increased 9.0% to
$0.38, 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:
77,016
Q1 2023
Q1 2022
Core Revenues growth (year over year)
7.7 %
Core Operating Expenses growth (year over
year)
14.0 %
NOI growth (year over year)
5.0 %
Average Occupancy
97.8 %
98.2 %
Bad debt % of gross rental revenue (1)
2.0 %
1.7 %
Turnover Rate
5.1 %
4.7 %
Rental Rate Growth (lease-over-lease):
Renewals
8.0 %
9.6 %
New Leases
5.7 %
14.5 %
Blended
7.3 %
10.8 %
(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
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Pre-COVID Average (2)
Revenues collected % of revenues due:
(1)
Revenues collected in same month
billed
93 %
91 %
91 %
92 %
96 %
Late collections of prior month
billings
5 %
6 %
6 %
7 %
3 %
Total collections
98 %
97 %
97 %
99 %
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 77,016 homes, Same Store NOI for
Q1 2023 increased 5.0% year over year on Same Store Core Revenues
growth of 7.7% and Same Store Core Operating Expenses growth of
14.0%.
Same Store Core Revenues
Same Store Core Revenues growth for Q1 2023 of 7.7% year over
year was primarily driven by an 8.5% increase in Average Monthly
Rent, and a 7.3% increase in other income, net of resident
recoveries, partially offset by a 40 basis points year over year
decline in Average Occupancy and a 30 basis points year over year
increase in bad debt as a percentage of gross rental revenue. Bad
debt as a percentage of gross rental revenue was 2.0% for Q1 2023,
consistent with Q4 2022 as reported and better than anticipated as
a result of improved payment actions that offset the significant
decline in government rental assistance.
Same Store Core Operating Expenses
Same Store Core Operating Expenses for Q1 2023 increased 14.0%
year over year, representing a favorable result as compared to the
Company's initial guidance expectations for first quarter growth in
the mid-teens. The year over year increase was primarily driven by
an increase in property tax expense due to an expected year over
year increase in property taxes in addition to the underaccrual of
property tax expense in the first three quarters of 2022, as well
as increases in utilities and property administrative expenses, net
of resident recoveries; turnover expenses, net of resident
recoveries; and personnel, leasing and marketing expenses.
Investment Management Activity
Acquisitions for Q1 2023 totaled 194 homes for $67 million,
primarily sourced from the Company's builder partners. This
included 181 wholly owned homes for $62 million in addition to 13
homes for $5 million in the Company's joint ventures.
Dispositions for Q1 2023 included 284 wholly owned homes for
gross proceeds of $95 million and 13 homes for gross proceeds of $6
million in the Company's joint ventures.
Balance Sheet and Capital Markets Activity
As of March 31, 2023, the Company had $1,325 million in
available liquidity through a combination of unrestricted cash and
undrawn capacity on its revolving credit facility. The Company's
total indebtedness as of March 31, 2023 was $7,829 million,
consisting of $5,775 million of unsecured debt and $2,054 million
of secured debt. Net debt / TTM adjusted EBITDAre was 5.5x at March
31, 2023, down from 5.7x as of December 31, 2022.
As previously announced in March 2023, the Company's issuer and
issue-level credit ratings were upgraded by S&P Global Ratings
to 'BBB' from 'BBB-' with a Stable outlook. In addition, as
previously announced in April 2023, Moody's Investors Service
revised the Company's rating outlook to 'Positive' from 'Stable'.
The Company has no debt reaching final maturity prior to 2026,
99.2% of its debt is fixed or swapped to fixed, and 83.1% of its
homes are unencumbered.
Dividend
As previously announced on April 28, 2023, the Company's Board
of Directors declared a quarterly cash dividend of $0.26 per share
of common stock. The dividend will be paid on or before May 26,
2023, to stockholders of record as of the close of business on May
10, 2023.
FY 2023 Guidance
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. Additionally, 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 cannot be
provided without unreasonable effort because the Company 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.
Full year 2023 guidance remains unchanged from initial guidance
provided in February 2023, as outlined in the table below:
FY 2023 Guidance
FY 2023 Guidance
Core FFO per share — diluted
$1.73 to $1.81
AFFO per share — diluted
$1.43 to $1.51
Same Store Core Revenues growth(1)
5.25% to 6.25%
Same Store Core Operating Expenses
growth(2)
7.5% to 9.5%
Same Store NOI growth
4.0% to 5.5%
Wholly owned acquisitions(3)
$250 million to $300 million
JV acquisitions(3)
$100 million to $300 million
Wholly owned dispositions
$250 million to $300 million
(1)
Embedded within the assumptions for this guidance is slightly
lower expected average occupancy versus 2022 due to anticipated
higher turnover, as well as elevated bad debt of 25 to 75 basis
points higher than 2022.
(2)
Embedded within the assumptions for this guidance is an expected
increase in property tax expense in a range of 6.5% to 7.5%, higher
turnover operating and capital expense as a result of higher
expected turnover in 2023, and expectations around continued
inflationary pressures. Because real estate taxes were underaccrued
in the first three quarters of 2022, the Company's initial guidance
anticipated Same Store Core Operating Expenses growth in the
mid-teens for first quarter 2023 followed by sequential improvement
during the remainder of the year, resulting in the expected range
for full year 2023 of 7.5% to 9.5%.
(3)
Guidance assumes modest acquisition activity in 2023, with
wholly owned acquisitions primarily sourced from the Company's
builder partners. The Company intends to maintain an opportunistic
approach to growth on balance sheet and in its joint ventures based
on actual market conditions throughout the year.
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m.
Eastern Time on May 2, 2023, to discuss results for the first
quarter of 2023. The domestic dial-in number is 1-888-330-2384, and
the international dial-in number is 1-240-789-2701. The conference
ID is 7714113. A live audio webcast may be accessed at
www.invh.com. A replay of the call will be available through May
30, 2023, and can be accessed by calling 1-800-770-2030 (domestic)
or 1-647-362-9199 (international) and using the playback ID
7714113, 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.
About Invitation Homes
Invitation Homes, an S&P 500 company, 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, poor resident selection and defaults and
non-renewals by the Company's residents, the Company's dependence
on third parties for key services, risks related to the evaluation
of properties, 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 rising
interest rates), uncertainty in financial markets (including as a
result of recent bank failures and events affecting financial
institutions), geopolitical tensions, natural disasters, climate
change, and public health crises 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, 2022 (the "Annual Report"), 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, in the Annual Report, 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)
March 31, 2023
December 31, 2022
(unaudited)
Assets:
Investments in single-family residential
properties, net
$
16,914,168
$
17,030,374
Cash and cash equivalents
325,277
262,870
Restricted cash
203,019
191,057
Goodwill
258,207
258,207
Investments in unconsolidated joint
ventures
272,906
280,571
Other assets, net
529,629
513,629
Total assets
$
18,503,206
$
18,536,708
Liabilities:
Mortgage loans, net
$
1,641,959
$
1,645,795
Secured term loan, net
401,351
401,530
Unsecured notes, net
2,519,100
2,518,185
Term loan facilities, net
3,205,643
3,203,567
Revolving facility
—
—
Accounts payable and accrued expenses
226,412
198,423
Resident security deposits
176,697
175,552
Other liabilities
79,541
70,025
Total liabilities
8,250,703
8,213,077
Equity:
Stockholders' equity
Preferred stock, $0.01 par value per
share, 900,000,000 shares authorized, none outstanding as of March
31, 2023 and December 31, 2022
—
—
Common stock, $0.01 par value per share,
9,000,000,000 shares authorized, 611,863,780 and 611,411,382
outstanding as of March 31, 2023 and December 31, 2022,
respectively
6,119
6,114
Additional paid-in capital
11,136,457
11,138,463
Accumulated deficit
(989,431
)
(951,220
)
Accumulated other comprehensive income
66,326
97,985
Total stockholders' equity
10,219,471
10,291,342
Non-controlling interests
33,032
32,289
Total equity
10,252,503
10,323,631
Total liabilities and equity
$
18,503,206
$
18,536,708
Consolidated Statements of
Operations
($ in thousands, except shares and per
share amounts)
Q1 2023
Q1 2022
(unaudited)
(unaudited)
Revenues:
Rental revenues
$
535,217
$
483,995
Other property income
51,298
46,204
Management fee revenues
3,375
2,111
Total revenues
589,890
532,310
Expenses:
Property operating and maintenance
208,497
182,269
Property management expense
23,584
20,967
General and administrative
17,452
17,639
Interest expense
78,047
74,389
Depreciation and amortization
164,673
155,796
Impairment and other
1,163
1,515
Total expenses
493,416
452,575
Gains (losses) on investments in equity
securities, net
88
(3,032
)
Other, net
(1,494
)
594
Gain on sale of property, net of tax
29,671
18,026
Losses from investments in unconsolidated
joint ventures
(4,155
)
(2,320
)
Net income
120,584
93,003
Net income attributable to non-controlling
interests
(342
)
(388
)
Net income attributable to common
stockholders
120,242
92,615
Net income available to participating
securities
(171
)
(220
)
Net income available to common
stockholders — basic and diluted
$
120,071
$
92,395
Weighted average common shares
outstanding — basic
611,588,465
606,410,225
Weighted average common shares
outstanding — diluted
612,564,298
607,908,398
Net income per common share —
basic
$
0.20
$
0.15
Net income per common share —
diluted
$
0.20
$
0.15
Dividends declared per common
share
$
0.26
$
0.22
Glossary and
Reconciliations
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, impairment on
depreciated real estate investments, and adjustments for
unconsolidated joint ventures. Adjusted EBITDAre is defined as
EBITDAre before the following items: share-based compensation
expense; severance; casualty 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.
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 these 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
Q1 2023
Q1 2022
Net income available to common
stockholders
$
120,071
$
92,395
Net income available to participating
securities
171
220
Non-controlling interests
342
388
Depreciation and amortization on real
estate assets
162,084
153,640
Impairment on depreciated real estate
investments
178
101
Net gain on sale of previously depreciated
investments in real estate
(29,671
)
(18,026
)
Depreciation and net gain on sale of
investments in unconsolidated joint ventures
2,121
500
FFO
$
255,296
$
229,218
Core FFO Reconciliation
Q1 2023
Q1 2022
FFO
$
255,296
$
229,218
Non-cash interest expense related to
amortization of deferred financing costs, loan discounts, and
non-cash interest expense from derivatives (1)
9,132
6,470
Share-based compensation expense
6,498
6,646
Severance expense
153
18
Casualty losses, net(1)
988
1,414
(Gains) losses on investments in equity
securities, net
(88
)
3,032
Core FFO
$
271,979
$
246,798
AFFO Reconciliation
Q1 2023
Q1 2022
Core FFO
$
271,979
$
246,798
Recurring capital expenditures (1)
(37,293
)
(32,830
)
AFFO
$
234,686
$
213,968
Net income available to common
stockholders
Weighted average common shares outstanding
— diluted
612,564,298
607,908,398
Net income per common share — diluted
$
0.20
$
0.15
FFO, Core FFO, and AFFO
Weighted average common shares and OP
Units outstanding — diluted
614,536,039
610,704,093
FFO per share — diluted
$
0.42
$
0.38
Core FFO per share — diluted
$
0.44
$
0.40
AFFO per share — diluted
$
0.38
$
0.35
(1)
Includes the Company's share from unconsolidated joint
ventures.
Reconciliation of Total Revenues to
Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Total revenues (Total
Portfolio)
$
589,890
$
579,836
$
568,675
$
557,300
$
532,310
Management fee revenues
(3,375
)
(3,326
)
(3,284
)
(2,759
)
(2,111
)
Total portfolio resident recoveries
(31,966
)
(32,639
)
(31,260
)
(29,394
)
(28,762
)
Total Core Revenues (Total
Portfolio)
554,549
543,871
534,131
525,147
501,437
Non-Same Store Core Revenues
(38,520
)
(35,708
)
(32,578
)
(28,635
)
(22,220
)
Same Store Core Revenues
$
516,029
$
508,163
$
501,553
$
496,512
$
479,217
Reconciliation of Property Operating
and Maintenance Expenses to Same Store Core Operating Expenses,
Quarterly
(in thousands) (unaudited)
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Property operating and maintenance
expenses (Total Portfolio)
$
208,497
$
209,615
$
203,787
$
190,680
$
182,269
Total Portfolio resident recoveries
(31,966
)
(32,639
)
(31,260
)
(29,394
)
(28,762
)
Core Operating Expenses (Total
Portfolio)
176,531
176,976
172,527
161,286
153,507
Non-Same Store Core Operating Expenses
(12,309
)
(10,486
)
(11,471
)
(9,623
)
(9,391
)
Same Store Core Operating
Expenses
$
164,222
$
166,490
$
161,056
$
151,663
$
144,116
Reconciliation of Net Income to Same
Store NOI, Quarterly
(in thousands) (unaudited)
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
Net income available to common
stockholders
$
120,071
$
100,426
$
79,032
$
110,815
$
92,395
Net income available to participating
securities
171
146
147
148
220
Non-controlling interests
342
290
250
542
388
Interest expense
78,047
78,409
76,454
74,840
74,389
Depreciation and amortization
164,673
163,318
160,428
158,572
155,796
Property management expense
23,584
22,770
22,385
21,814
20,967
General and administrative
17,452
16,921
20,123
19,342
17,639
Impairment and other (1)
1,163
5,823
20,004
1,355
1,515
Gain on sale of property, net of tax
(29,671
)
(21,213
)
(23,952
)
(27,508
)
(18,026
)
(Gains) losses on investments in equity
securities, net
(88
)
(61
)
796
172
3,032
Other, net (2)
1,494
(344
)
8,372
3,827
(594
)
Management fee revenues
(3,375
)
(3,326
)
(3,284
)
(2,759
)
(2,111
)
Loss from investments in unconsolidated
joint ventures
4,155
3,736
849
2,701
2,320
NOI (Total Portfolio)
378,018
366,895
361,604
363,861
347,930
Non-Same Store NOI
(26,211
)
(25,222
)
(21,107
)
(19,012
)
(12,829
)
Same Store NOI
$
351,807
$
341,673
$
340,497
$
344,849
$
335,101
(1)
Includes $5.0 million and $19.0 million of net estimated losses
and damages related to Hurricanes Ian and Nicole for Q4 2022 and Q3
2022, respectively.
(2)
Includes interest income and other miscellaneous income and
expenses.
Reconciliation of Net Income to Adjusted EBITDAre
(in thousands, unaudited)
Trailing Twelve Months (TTM)
Ended
Q1 2023
Q1 2022
March 31, 2023
December 31, 2022
Net income available to common
stockholders
$
120,071
$
92,395
$
410,344
$
382,668
Net income available to participating
securities
171
220
612
661
Non-controlling interests
342
388
1,424
1,470
Interest expense
78,047
74,389
307,750
304,092
Interest expense in unconsolidated joint
ventures
4,578
592
7,567
3,581
Depreciation and amortization
164,673
155,796
646,991
638,114
Depreciation and amortization of
investments in unconsolidated joint ventures
2,475
638
7,675
5,838
EBITDA
370,357
324,418
1,382,363
1,336,424
Gain on sale of property, net of tax
(29,671
)
(18,026
)
(102,344
)
(90,699
)
Impairment on depreciated real estate
investments
178
101
387
310
Net gain on sale of investments in
unconsolidated joint ventures
(330
)
(130
)
(1,065
)
(865
)
EBITDAre
340,534
306,363
1,279,341
1,245,170
Share-based compensation expense
6,498
6,646
28,814
28,962
Severance
153
18
449
314
Casualty losses, net (1)
988
1,414
28,059
28,485
(Gains) losses on investments in equity
securities, net
(88
)
3,032
819
3,939
Other, net (2)
1,494
(594
)
13,349
11,261
Adjusted EBITDAre
$
349,579
$
316,879
$
1,350,831
$
1,318,131
(1)
Includes the Company's share from unconsolidated joint ventures,
and includes $24.0 million of net estimated losses and damages
related to Hurricanes Ian and Nicole for the TTM ended March 31,
2023 and December 31, 2022.
(2)
Includes interest income and other miscellaneous income and
expenses.
Reconciliation of Net Debt / Trailing Twelve Months (TTM)
Adjusted EBITDAre
(in thousands, except for ratio)
(unaudited)
As of
As of
March 31, 2023
December 31, 2022
Mortgage loans, net
$
1,641,959
$
1,645,795
Secured term loan, net
401,351
401,530
Unsecured notes, net
2,519,100
2,518,185
Term loan facility, net
3,205,643
3,203,567
Revolving facility
—
—
Total Debt per Balance Sheet
7,768,053
7,769,077
Retained and repurchased certificates
(88,406
)
(88,564
)
Cash, ex-security deposits and letters of
credit (1)
(349,018
)
(275,989
)
Deferred financing costs, net
47,891
51,076
Unamortized discounts on note payable
13,118
13,518
Net Debt (A)
$
7,391,638
$
7,469,118
For the TTM Ended
For the TTM Ended
March 31, 2023
December 31, 2022
Adjusted EBITDAre (B)
$
1,350,831
$
1,318,131
Net Debt / TTM Adjusted EBITDAre (A /
B)
5.5x
5.7x
(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/20230501005490/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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