DALLAS--(BUSINESS WIRE)--Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”), the nation’s premier single-family home leasing and management company, today announced its Q3 2024 financial and operating results.
Third Quarter 2024 Highlights
- Year over year, total revenues increased 6.9% to $660 million, property operating and maintenance costs increased 5.6% to $242 million, net income available to common stockholders decreased 27.8% to $95 million, and net income per diluted common share decreased 27.8% to $0.15.
- Year over year, Core FFO per share increased 6.8% to $0.47 and AFFO per share increased 7.2% to $0.38.
- Same Store NOI increased 3.9% year over year on 3.6% Same Store Core Revenues growth and 3.1% Same Store Core Operating Expenses growth.
- Same Store Average Occupancy was 97.0%, generally consistent with the prior year result.
- Same Store renewal rent growth of 4.2% and Same Store new lease rent growth of 1.7% drove Same Store blended rent growth of 3.6%.
- Acquisitions by the Company and the Company’s joint ventures totaled 926 homes for approximately $331 million while dispositions totaled 331 homes for approximately $128 million.
-
The Company continued to improve the strength of its investment-grade balance sheet. Specifically:
- As previously announced on September 23, 2024, Fitch Ratings upgraded the Company’s issuer and issue-level credit ratings to ‘BBB+’ from ‘BBB’ with a stable outlook.
- As previously announced on September 9, 2024, the Company replaced its existing credit facility and lowered the cost of its debt with a new $3.5 billion senior unsecured credit facility, consisting of a $1.75 billion revolving line of credit and a $1.75 billion term loan, with each carrying two six-month extension options such that the final maturity date is September 2029, subject to certain conditions.
- As previously announced on September 23, 2024, the Company closed a public offering of $500 million aggregate principal amount of 4.875% Senior Notes due 2035.
- In addition, during September 2024, the Company amended certain interest rate swaps and entered into $1.4 billion of new interest rate swaps. As of September 30, 2024, the Company’s currently active swaps have a weighted average strike rate of 2.86% and are scheduled to terminate between November 30, 2024 and July 31, 2025, while its forward starting swaps, which will become active between December 31, 2024 and July 9, 2025 and mature between May 31, 2028 and May 31, 2029, have a weighted average strike rate of 2.95%.
- The Company experienced mostly limited damages to its homes in several markets from Hurricanes Beryl, Debby, and Helene, which it estimates at approximately $14.0 million of expenses, net of estimated insurance recoveries; subsequent to quarter end, the Company incurred losses and damages to homes in its Florida markets as a result of Hurricane Milton, with initial expense estimates totaling approximately $37.5 million, net of estimated insurance recoveries.
Comments from Chief Executive Officer Dallas Tanner
“We’re pleased to report another strong quarter, driven by year over year growth in total revenues of 6.9% and AFFO per share of 7.2%. We continue to believe our growth prospects, coupled with the attractive value proposition of single-family rentals compared to homeownership, create a constructive backdrop for the foreseeable future. Based on our solid year to date results and expectations for the remainder of the year, we have raised our full year 2024 Core FFO and AFFO per share guidance by a penny at the midpoint to $1.88 and $1.59 per share, respectively.”
Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures
Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States (“GAAP”). These measures are defined herein and, as applicable, reconciled to the most comparable GAAP measures.
Financial Results |
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Net Income, FFO, Core FFO, and AFFO Per Share — Diluted |
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Q3 2024 |
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Q3 2023 |
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YTD 2024 |
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YTD 2023 |
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Net income |
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$ |
0.15 |
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$ |
0.21 |
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$ |
0.51 |
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$ |
0.64 |
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FFO |
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0.37 |
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0.40 |
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1.14 |
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1.23 |
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Core FFO |
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0.47 |
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0.44 |
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1.41 |
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1.32 |
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AFFO |
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0.38 |
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0.36 |
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1.19 |
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1.12 |
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Net Income
Net income per common share — diluted for Q3 2024 was $0.15, compared to net income per common share — diluted of $0.21 for Q3 2023. Total revenues and total property operating and maintenance expenses for Q3 2024 were $660 million and $242 million, respectively, compared to $618 million and $229 million, respectively, for Q3 2023.
Net income per common share — diluted for YTD 2024 was $0.51, compared to net income per share — diluted of $0.64 for YTD 2023. Total revenues and total property operating and maintenance expenses for YTD 2024 were $1,960 million and $707 million, respectively, compared to $1,808 million and $652 million, respectively, for YTD 2023.
Core FFO
Year over year, Core FFO per share for Q3 2024 increased 6.8% to $0.47, while Core FFO per share for YTD 2024 increased 6.6% to $1.41, primarily due to NOI growth.
AFFO
Year over year, AFFO per share for Q3 2024 increased 7.2% to $0.38, while AFFO per share for YTD 2024 increased 6.0% to $1.19, primarily due to the increase in Core FFO per share described above.
Operating Results |
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Same Store Operating Results Snapshot |
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Number of homes in Same Store Portfolio: |
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77,186 |
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Q3 2024 |
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Q3 2023 |
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YTD 2024 |
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YTD 2023 |
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Core Revenues growth (year over year) |
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3.6 |
% |
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4.8 |
% |
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Core Operating Expenses growth (year over year) |
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3.1 |
% |
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5.6 |
% |
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NOI growth (year over year) |
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3.9 |
% |
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4.5 |
% |
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Average Occupancy |
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97.0 |
% |
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97.1 |
% |
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97.5 |
% |
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97.5 |
% |
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Bad Debt % of gross rental revenue |
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1.0 |
% |
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1.1 |
% |
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0.9 |
% |
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1.4 |
% |
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Turnover Rate |
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6.2 |
% |
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6.8 |
% |
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17.5 |
% |
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18.8 |
% |
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Rental Rate Growth (lease-over-lease): |
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Renewals |
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4.2 |
% |
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6.5 |
% |
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5.2 |
% |
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7.0 |
% |
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New Leases |
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1.7 |
% |
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4.6 |
% |
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2.1 |
% |
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5.5 |
% |
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Blended |
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3.6 |
% |
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5.9 |
% |
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4.3 |
% |
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6.5 |
% |
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Same Store NOI
For the Same Store Portfolio of 77,186 homes, Same Store NOI for Q3 2024 increased 3.9% year over year on Same Store Core Revenues growth of 3.6% and Same Store Core Operating Expenses growth of 3.1%. YTD 2024 Same Store NOI increased 4.5% year over year on Same Store Core Revenues growth of 4.8% and Same Store Core Operating Expenses growth of 5.6%.
Same Store Core Revenues
Same Store Core Revenues growth for Q3 2024 of 3.6% year over year was primarily driven by a 3.7% increase in Average Monthly Rent, a 10 basis point year over year improvement in Bad Debt as a percentage of gross rental revenue, and a 2.4% increase in other income, net of resident recoveries, partially offset by a 10 basis point year over year decline in Average Occupancy.
YTD 2024 Same Store Core Revenues growth of 4.8% year over year was primarily driven by a 4.2% increase in Average Monthly Rent, a 50 basis point year over year improvement in Bad Debt as a percentage of gross rental revenue, and a 9.1% increase in other income, net of resident recoveries.
Same Store Core Operating Expenses
Same Store Core Operating Expenses for Q3 2024 increased 3.1% year over year, primarily attributable to a 5.3% increase in fixed expenses, partially offset by a 0.5% decrease in controllable expenses.
YTD 2024 Same Store Core Operating Expenses increased 5.6% year over year, primarily driven by a 8.4% increase in fixed expenses and a 0.8% increase in controllable expenses.
Investment and Property Management Activity
Acquisitions for Q3 2024 included 891 wholly owned homes for approximately $319 million and 35 homes for approximately $12 million in the Company’s joint ventures. Dispositions for Q3 2024 included 310 wholly owned homes for gross proceeds of approximately $119 million and 21 homes for gross proceeds of approximately $9 million in the Company’s joint ventures.
Year to date through Q3 2024, the Company acquired 1,591 wholly owned homes for $557 million and 108 homes for $37 million in the Company’s joint ventures. The company also sold 937 wholly owned homes for $378 million and 57 homes for $25 million in the Company’s joint ventures.
A summary of the Company’s owned and/or managed homes is included in the following table:
Summary of Homes Owned and/or Managed As Of 9/30/2024 |
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Number of Homes
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Acquired or Added In
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Disposed or Subtracted
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Number of Homes
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Wholly owned homes |
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84,640 |
|
891 |
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(310 |
) |
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85,221 |
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Joint venture owned homes |
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7,605 |
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35 |
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(21 |
) |
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7,619 |
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Managed-only homes |
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17,261 |
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696 |
|
(41 |
) |
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17,916 |
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Total homes owned and/or managed |
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109,506 |
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1,622 |
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(372 |
) |
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110,756 |
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Balance Sheet and Capital Markets Activity
As of September 30, 2024, the Company had $2,027 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 September 30, 2024 was $9,098 million, consisting of $7,075 million of unsecured debt and $2,023 million of secured debt. Net debt / TTM adjusted EBITDAre was 5.4x at September 30, 2024, a slight decrease from 5.5x as of December 31, 2023. As of September 30, 2024, 99.6% of the Company’s total debt was fixed rate or swapped to fixed rate and 83.8% of its wholly owned homes were unencumbered.
During Q3 2024, the Company continued to improve the strength of its investment-grade balance sheet. Specifically:
- As previously announced, on September 23, 2024, Fitch Ratings upgraded the Company’s issuer and issue-level credit ratings to ‘BBB+’ from ‘BBB’ with a stable outlook.
- As previously announced, on September 9, 2024, the Company replaced its existing credit facility and lowered the cost of its debt with a new $3.5 billion senior unsecured credit facility, consisting of a $1.75 billion revolving line of credit and a $1.75 billion term loan, both maturing on September 9, 2028, with two six-month extension options, subject to certain conditions.
- As previously announced, on September 23, 2024, the Company closed a public offering of $500 million aggregate principal amount of 4.875% Senior Notes due 2035.
- In addition, during September 2024, the Company amended certain interest rate swaps and entered into $1.4 billion of new interest rate swaps. As of September 30, 2024, the Company’s currently active swaps have a weighted average strike rate of 2.86% and are scheduled to terminate between November 30, 2024 and July 31, 2025, while its forward starting swaps, which will become active between December 31, 2024 and July 9, 2025 and mature between May 31, 2028 and May 31, 2029, have a weighted average strike rate of 2.95%.
FY 2024 Guidance Details
The Company has revised its full year 2024 guidance expectations, as outlined in the following table:
FY 2024 Guidance |
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FY 2024 Current
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FY 2024 Midpoint |
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Current |
Prior
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Change |
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Core FFO per share — diluted |
$1.86 to $1.90 |
$ |
1.88 |
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$ |
1.87 |
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$ |
0.01 |
AFFO per share — diluted |
$1.57 to $1.61 |
$ |
1.59 |
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$ |
1.58 |
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$ |
0.01 |
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Same Store Core Revenues growth (1) |
4.0% to 4.5% |
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4.25 |
% |
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4.875 |
% |
-62.5 bps |
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Same Store Core Operating Expenses growth (2) |
3.25% to 4.25% |
|
3.75 |
% |
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5.75 |
% |
-200.0 bps |
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Same Store NOI growth |
4.0% to 5.0% |
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4.50 |
% |
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4.5 |
% |
0.0 bps |
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Wholly owned acquisitions |
$600 million to $1,000 million |
$800 million |
$800 million |
$ |
— |
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JV acquisitions |
$100 million to $300 million |
$200 million |
$200 million |
$ |
— |
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Wholly owned dispositions |
$400 million to $600 million |
$500 million |
$500 million |
$ |
— |
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(1) Guidance assumes FY 2024 Average Occupancy is similar to FY 2023 Average Occupancy. Guidance assumes average Bad Debt for FY 2024 in a range of 65 to 95 basis points. |
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(2) Guidance assumes (i) FY 2024 property taxes expense growth in a range of 5.0% to 6.5% year over year, reflecting an improvement in expectations from the prior guidance range of 8.0% to 9.5%, primarily due to favorable information received to date from Florida and Georgia; and (ii) FY 2024 insurance expense growth of approximately 7.5% year over year. |
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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.
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 2:00 p.m. Eastern Time on October 31, 2024, to review third quarter of 2024 results, discuss recent events, and conduct a question-and-answer session. 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.
Listen-only participants are encouraged to join the conference call via a live audio webcast, which is available online from the Company’s investor relations website at www.invh.com. Following the conclusion of the earnings call, the Company will post a replay of the webcast to its website for one year.
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 and management 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, development and use of artificial intelligence, 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), uncertainty in financial markets (including as a result of 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 its Annual Report on Form 10-K for the year ended December 31, 2023 (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 |
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($ in thousands, except shares and per share data) |
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September 30, 2024 |
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December 31, 2023 |
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(unaudited) |
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Assets: |
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Investments in single-family residential properties, net |
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$ |
17,284,631 |
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$ |
17,289,214 |
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Cash and cash equivalents |
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1,027,199 |
|
|
|
700,618 |
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Restricted cash |
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|
218,273 |
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|
|
196,866 |
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Goodwill |
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|
258,207 |
|
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|
258,207 |
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Investments in unconsolidated joint ventures |
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|
244,647 |
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|
247,166 |
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Other assets, net |
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599,891 |
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|
528,896 |
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Total assets |
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$ |
19,632,848 |
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$ |
19,220,967 |
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Liabilities: |
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|
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Mortgage loans, net |
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$ |
1,614,220 |
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$ |
1,627,256 |
|
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Secured term loan, net |
|
|
401,595 |
|
|
|
401,515 |
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Unsecured notes, net |
|
|
3,799,034 |
|
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3,305,467 |
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Term loan facilities, net |
|
|
2,444,054 |
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|
|
3,211,814 |
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Revolving facility |
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|
750,000 |
|
|
|
— |
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Accounts payable and accrued expenses |
|
|
398,894 |
|
|
|
200,590 |
|
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Resident security deposits |
|
|
180,484 |
|
|
|
180,455 |
|
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Other liabilities |
|
|
92,905 |
|
|
|
103,435 |
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Total liabilities |
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|
9,681,186 |
|
|
|
9,030,532 |
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Equity: |
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Stockholders’ equity |
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Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of September 30, 2024 and December 31, 2023 |
|
|
— |
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|
|
— |
|
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Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 612,605,478 and 611,958,239 outstanding as of September 30, 2024 and December 31, 2023, respectively |
|
|
6,126 |
|
|
|
6,120 |
|
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Additional paid-in capital |
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|
11,164,240 |
|
|
|
11,156,736 |
|
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Accumulated deficit |
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|
(1,275,601 |
) |
|
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(1,070,586 |
) |
|
Accumulated other comprehensive income |
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|
21,310 |
|
|
|
63,701 |
|
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Total stockholders’ equity |
|
|
9,916,075 |
|
|
|
10,155,971 |
|
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Non-controlling interests |
|
|
35,587 |
|
|
|
34,464 |
|
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Total equity |
|
|
9,951,662 |
|
|
|
10,190,435 |
|
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Total liabilities and equity |
|
$ |
19,632,848 |
|
|
$ |
19,220,967 |
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Consolidated Statements of Operations |
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($ in thousands, except shares and per share amounts) (unaudited) |
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Q3 2024 |
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Q3 2023 |
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YTD 2024 |
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YTD 2023 |
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Revenues: |
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Rental revenues |
|
$ |
575,462 |
|
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$ |
555,270 |
|
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$ |
1,723,757 |
|
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$ |
1,633,672 |
|
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Other property income |
|
|
65,880 |
|
|
|
59,021 |
|
|
|
187,157 |
|
|
|
164,058 |
|
|
Management fee revenues |
|
|
18,980 |
|
|
|
3,404 |
|
|
|
48,898 |
|
|
|
10,227 |
|
|
Total revenues |
|
|
660,322 |
|
|
|
617,695 |
|
|
|
1,959,812 |
|
|
|
1,807,957 |
|
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Expenses: |
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|
|
|
|
|
|
|
||||||||
Property operating and maintenance |
|
|
242,228 |
|
|
|
229,488 |
|
|
|
706,809 |
|
|
|
651,793 |
|
|
Property management expense |
|
|
34,382 |
|
|
|
23,399 |
|
|
|
98,252 |
|
|
|
70,563 |
|
|
General and administrative |
|
|
21,727 |
|
|
|
22,714 |
|
|
|
66,673 |
|
|
|
59,957 |
|
|
Interest expense |
|
|
91,060 |
|
|
|
86,736 |
|
|
|
270,912 |
|
|
|
243,408 |
|
|
Depreciation and amortization |
|
|
180,479 |
|
|
|
170,696 |
|
|
|
532,414 |
|
|
|
501,128 |
|
|
Casualty losses, impairment, and other |
|
|
20,872 |
|
|
|
2,496 |
|
|
|
35,362 |
|
|
|
5,527 |
|
|
Total expenses |
|
|
590,748 |
|
|
|
535,529 |
|
|
|
1,710,422 |
|
|
|
1,532,376 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gains (losses) on investments in equity and other securities, net |
|
|
(257 |
) |
|
|
(499 |
) |
|
|
1,038 |
|
|
|
113 |
|
|
Other, net |
|
|
(9,345 |
) |
|
|
(2,533 |
) |
|
|
(57,384 |
) |
|
|
(7,968 |
) |
|
Gain on sale of property, net of tax |
|
|
47,766 |
|
|
|
57,989 |
|
|
|
141,531 |
|
|
|
134,448 |
|
|
Losses from investments in unconsolidated joint ventures |
|
|
(12,160 |
) |
|
|
(4,902 |
) |
|
|
(22,780 |
) |
|
|
(11,087 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income |
|
|
95,578 |
|
|
|
132,221 |
|
|
|
311,795 |
|
|
|
391,087 |
|
|
Net income attributable to non-controlling interests |
|
|
(309 |
) |
|
|
(403 |
) |
|
|
(988 |
) |
|
|
(1,163 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common stockholders |
|
|
95,269 |
|
|
|
131,818 |
|
|
|
310,807 |
|
|
|
389,924 |
|
|
Net income available to participating securities |
|
|
(185 |
) |
|
|
(181 |
) |
|
|
(584 |
) |
|
|
(518 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income available to common stockholders — basic and diluted |
|
$ |
95,084 |
|
|
$ |
131,637 |
|
|
$ |
310,223 |
|
|
$ |
389,406 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding — basic |
|
|
612,674,802 |
|
|
|
612,000,811 |
|
|
|
612,508,300 |
|
|
|
611,849,302 |
|
|
Weighted average common shares outstanding — diluted |
|
|
613,645,188 |
|
|
|
613,580,042 |
|
|
|
613,759,171 |
|
|
|
613,155,041 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share — basic |
|
$ |
0.16 |
|
|
$ |
0.22 |
|
|
$ |
0.51 |
|
|
$ |
0.64 |
|
|
Net income per common share — diluted |
|
$ |
0.15 |
|
|
$ |
0.21 |
|
|
$ |
0.51 |
|
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
|
$ |
0.28 |
|
|
$ |
0.26 |
|
|
$ |
0.84 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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.
Bad Debt
Bad debt represents the Company’s reserves for residents’ accounts receivables balances that are aged greater than 30 days, 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.
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 defines Core FFO as FFO adjusted for the following: non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives; share-based compensation expense; legal settlements; severance expense; casualty (gains) losses, net; and (gains) losses on investments in equity and other securities, net, as applicable. The Company defines Adjusted FFO as Core FFO less recurring capital expenditures that are necessary to help preserve the value, and maintain the functionality, of its homes. Where appropriate, FFO, Core FFO, and Adjusted FFO are adjusted for the Company’s share of investments in 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 Company believes that Core FFO and Adjusted FFO are also meaningful supplemental measures of its operating performance for the same reasons as FFO and are further helpful to investors as they provide a more consistent measurement of the Company’s performance across reporting periods by removing the impact of certain items that are not comparable from period to period.
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. FFO, 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 FFO, Core FFO, and Adjusted FFO may not be comparable to the FFO, Core FFO, and Adjusted FFO of other companies due to the fact that not all companies use the same definition of FFO, 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.
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 |
|
Q3 2024 |
|
Q3 2023 |
|
YTD 2024 |
YTD 2023 |
|
||||||||
Net income available to common stockholders |
|
$ |
95,084 |
|
|
$ |
131,637 |
|
|
$ |
310,223 |
|
$ |
389,406 |
|
|
Net income available to participating securities |
|
|
185 |
|
|
|
181 |
|
|
|
584 |
|
|
518 |
|
|
Non-controlling interests |
|
|
309 |
|
|
|
403 |
|
|
|
988 |
|
|
1,163 |
|
|
Depreciation and amortization on real estate assets |
|
|
176,174 |
|
|
|
167,921 |
|
|
|
521,411 |
|
|
493,027 |
|
|
Impairment on depreciated real estate investments |
|
|
270 |
|
|
|
83 |
|
|
|
330 |
|
|
342 |
|
|
Net gain on sale of previously depreciated investments in real estate |
|
|
(47,766 |
) |
|
|
(57,989 |
) |
|
|
(141,531 |
) |
|
(134,448 |
) |
|
Depreciation and net gain on sale of investments in unconsolidated joint ventures |
|
|
4,060 |
|
|
|
2,111 |
|
|
|
10,076 |
|
|
6,425 |
|
|
FFO |
|
$ |
228,316 |
|
|
$ |
244,347 |
|
|
$ |
702,081 |
|
$ |
756,433 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Core FFO Reconciliation |
|
Q3 2024 |
|
Q3 2023 |
|
YTD 2024 |
YTD 2023 |
|
||||||||
FFO |
|
$ |
228,316 |
|
|
$ |
244,347 |
|
|
$ |
702,081 |
|
$ |
756,433 |
|
|
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1) |
|
|
14,085 |
|
|
|
9,561 |
|
|
|
32,207 |
|
|
25,875 |
|
|
Share-based compensation expense |
|
|
5,417 |
|
|
|
8,929 |
|
|
|
20,809 |
|
|
21,493 |
|
|
Legal settlements (2) |
|
|
17,500 |
|
|
|
2,000 |
|
|
|
77,000 |
|
|
2,000 |
|
|
Severance expense |
|
|
209 |
|
|
|
392 |
|
|
|
388 |
|
|
916 |
|
|
Casualty losses, net (1) |
|
|
20,729 |
|
|
|
2,429 |
|
|
|
35,174 |
|
|
5,214 |
|
|
(Gains) losses on investments in equity and other securities, net |
|
|
257 |
|
|
|
499 |
|
|
|
(1,038 |
) |
|
(113 |
) |
|
Core FFO |
|
$ |
286,513 |
|
|
$ |
268,157 |
|
|
$ |
866,621 |
|
$ |
811,818 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
AFFO Reconciliation |
|
Q3 2024 |
|
Q3 2023 |
|
YTD 2024 |
YTD 2023 |
|
||||||||
Core FFO |
|
$ |
286,513 |
|
|
$ |
268,157 |
|
|
$ |
866,621 |
|
$ |
811,818 |
|
|
Recurring capital expenditures (1) |
|
|
(51,505 |
) |
|
|
(49,007 |
) |
|
|
(135,262 |
) |
|
(122,700 |
) |
|
AFFO |
|
$ |
235,008 |
|
|
$ |
219,150 |
|
|
$ |
731,359 |
|
$ |
689,118 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income available to common stockholders |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding — diluted |
|
|
613,645,188 |
|
|
|
613,580,042 |
|
|
|
613,759,171 |
|
|
613,155,041 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share — diluted |
|
$ |
0.15 |
|
|
$ |
0.21 |
|
|
$ |
0.51 |
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
FFO, Core FFO, and AFFO |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares and OP Units outstanding — diluted |
|
|
615,913,139 |
|
|
|
615,699,631 |
|
|
|
615,987,978 |
|
|
615,208,781 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
FFO per share — diluted |
|
$ |
0.37 |
|
|
$ |
0.40 |
|
|
$ |
1.14 |
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Core FFO per share — diluted |
|
$ |
0.47 |
|
|
$ |
0.44 |
|
|
$ |
1.41 |
|
$ |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
AFFO per share — diluted |
|
$ |
0.38 |
|
|
$ |
0.36 |
|
|
$ |
1.19 |
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes the Company’s share from unconsolidated joint ventures. |
||||||||||||||||
(2) For Q3 2024 and YTD 2024, includes $17.5 million and $77.0 million, respectively, of settlement costs related to resolution of an inquiry from the Federal Trade Commission and the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs. |
||||||||||||||||
(3) For Q3 2024 and YTD 2024, includes $14.0 million of estimated losses and damages, net of estimated insurance recoveries, related to Hurricanes Beryl, Debby, and Helene. |
||||||||||||||||
Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly |
|||||||||||||||||||||
(in thousands) (unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
||||||||||
Total revenues (Total Portfolio) |
|
$ |
660,322 |
|
|
$ |
653,451 |
|
|
$ |
646,039 |
|
|
$ |
624,321 |
|
|
$ |
617,695 |
|
|
Management fee revenues |
|
|
(18,980 |
) |
|
|
(15,976 |
) |
|
|
(13,942 |
) |
|
|
(3,420 |
) |
|
|
(3,404 |
) |
|
Total portfolio resident recoveries |
|
|
(42,412 |
) |
|
|
(37,102 |
) |
|
|
(37,795 |
) |
|
|
(35,050 |
) |
|
|
(36,641 |
) |
|
Total Core Revenues (Total Portfolio) |
|
|
598,930 |
|
|
|
600,373 |
|
|
|
594,302 |
|
|
|
585,851 |
|
|
|
577,650 |
|
|
Non-Same Store Core Revenues |
|
|
(43,651 |
) |
|
|
(43,980 |
) |
|
|
(43,237 |
) |
|
|
(42,737 |
) |
|
|
(41,773 |
) |
|
Same Store Core Revenues |
|
$ |
555,279 |
|
|
$ |
556,393 |
|
|
$ |
551,065 |
|
|
$ |
543,114 |
|
|
$ |
535,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Total Revenues to Same Store Core Revenues, YTD |
|||||||||||||||||||||
(in thousands) (unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
YTD 2024 |
|
YTD 2023 |
|
|
|
|
|
|
|
||||||||||
Total revenues (Total Portfolio) |
|
$ |
1,959,812 |
|
|
$ |
1,807,957 |
|
|
|
|
|
|
|
|
||||||
Management fee revenues |
|
|
(48,898 |
) |
|
|
(10,227 |
) |
|
|
|
|
|
|
|
||||||
Total portfolio resident recoveries |
|
|
(117,309 |
) |
|
|
(101,383 |
) |
|
|
|
|
|
|
|
||||||
Total Core Revenues (Total Portfolio) |
|
|
1,793,605 |
|
|
|
1,696,347 |
|
|
|
|
|
|
|
|
||||||
Non-Same Store Core Revenues |
|
|
(130,868 |
) |
|
|
(110,253 |
) |
|
|
|
|
|
|
|
||||||
Same Store Core Revenues |
|
$ |
1,662,737 |
|
|
$ |
1,586,094 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly |
|||||||||||||||||||||
(in thousands) (unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
||||||||||
Property operating and maintenance expenses (Total Portfolio) |
|
$ |
242,228 |
|
|
$ |
234,184 |
|
|
$ |
230,397 |
|
|
$ |
228,542 |
|
|
$ |
229,488 |
|
|
Total Portfolio resident recoveries |
|
|
(42,412 |
) |
|
|
(37,102 |
) |
|
|
(37,795 |
) |
|
|
(35,050 |
) |
|
|
(36,641 |
) |
|
Core Operating Expenses (Total Portfolio) |
|
|
199,816 |
|
|
|
197,082 |
|
|
|
192,602 |
|
|
|
193,492 |
|
|
|
192,847 |
|
|
Non-Same Store Core Operating Expenses |
|
|
(18,131 |
) |
|
|
(17,612 |
) |
|
|
(17,642 |
) |
|
|
(17,277 |
) |
|
|
(16,589 |
) |
|
Same Store Core Operating Expenses |
|
$ |
181,685 |
|
|
$ |
179,470 |
|
|
$ |
174,960 |
|
|
$ |
176,215 |
|
|
$ |
176,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, YTD |
|||||||||||||||||||||
(in thousands) (unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
YTD 2024 |
|
YTD 2023 |
|
|
|
|
|
|
|
||||||||||
Property operating and maintenance expenses (Total Portfolio) |
|
$ |
706,809 |
|
|
$ |
651,793 |
|
|
|
|
|
|
|
|
||||||
Total Portfolio resident recoveries |
|
|
(117,309 |
) |
|
|
(101,383 |
) |
|
|
|
|
|
|
|
||||||
Core Operating Expenses (Total Portfolio) |
|
|
589,500 |
|
|
|
550,410 |
|
|
|
|
|
|
|
|
||||||
Non-Same Store Core Operating Expenses |
|
|
(53,385 |
) |
|
|
(42,754 |
) |
|
|
|
|
|
|
|
||||||
Same Store Core Operating Expenses |
|
$ |
536,115 |
|
|
$ |
507,656 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Net Income to Same Store NOI, Quarterly |
|
|
|||||||||||||||||||
(in thousands) (unaudited) |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Q3 2024 |
|
Q2 2024 |
|
Q1 2024 |
|
Q4 2023 |
|
Q3 2023 |
|
||||||||||
Net income available to common stockholders |
|
$ |
95,084 |
|
|
$ |
72,981 |
|
|
$ |
142,158 |
|
|
$ |
129,368 |
|
|
$ |
131,637 |
|
|
Net income available to participating securities |
|
|
185 |
|
|
|
207 |
|
|
|
192 |
|
|
|
178 |
|
|
|
181 |
|
|
Non-controlling interests |
|
|
309 |
|
|
|
243 |
|
|
|
436 |
|
|
|
395 |
|
|
|
403 |
|
|
Interest expense |
|
|
91,060 |
|
|
|
90,007 |
|
|
|
89,845 |
|
|
|
90,049 |
|
|
|
86,736 |
|
|
Depreciation and amortization |
|
|
180,479 |
|
|
|
176,622 |
|
|
|
175,313 |
|
|
|
173,159 |
|
|
|
170,696 |
|
|
Property management expense |
|
|
34,382 |
|
|
|
32,633 |
|
|
|
31,237 |
|
|
|
25,246 |
|
|
|
23,399 |
|
|
General and administrative |
|
|
21,727 |
|
|
|
21,498 |
|
|
|
23,448 |
|
|
|
22,387 |
|
|
|
22,714 |
|
|
Casualty losses, impairment, and other (1) |
|
|
20,872 |
|
|
|
10,353 |
|
|
|
4,137 |
|
|
|
3,069 |
|
|
|
2,496 |
|
|
Gain on sale of property, net of tax |
|
|
(47,766 |
) |
|
|
(43,267 |
) |
|
|
(50,498 |
) |
|
|
(49,092 |
) |
|
|
(57,989 |
) |
|
(Gains) losses on investments in equity securities, net |
|
|
257 |
|
|
|
(1,504 |
) |
|
|
209 |
|
|
|
(237 |
) |
|
|
499 |
|
|
Other, net (2) |
|
|
9,345 |
|
|
|
54,012 |
|
|
|
(5,973 |
) |
|
|
(5,533 |
) |
|
|
2,533 |
|
|
Management fee revenues |
|
|
(18,980 |
) |
|
|
(15,976 |
) |
|
|
(13,942 |
) |
|
|
(3,420 |
) |
|
|
(3,404 |
) |
|
Losses from investments in unconsolidated joint ventures |
|
|
12,160 |
|
|
|
5,482 |
|
|
|
5,138 |
|
|
|
6,790 |
|
|
|
4,902 |
|
|
NOI (Total Portfolio) |
|
|
399,114 |
|
|
|
403,291 |
|
|
|
401,700 |
|
|
|
392,359 |
|
|
|
384,803 |
|
|
Non-Same Store NOI |
|
|
(25,520 |
) |
|
|
(26,368 |
) |
|
|
(25,595 |
) |
|
|
(25,460 |
) |
|
|
(25,184 |
) |
|
Same Store NOI |
|
$ |
373,594 |
|
|
$ |
376,923 |
|
|
$ |
376,105 |
|
|
$ |
366,899 |
|
|
$ |
359,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Net Income to Same Store NOI, YTD |
|
|
|||||||||||||||||||
(in thousands) (unaudited) |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
YTD 2024 |
|
YTD 2023 |
|
|
|
|
|
|
|
||||||||||
Net income available to common stockholders |
|
$ |
310,223 |
|
|
$ |
389,406 |
|
|
|
|
|
|
|
|
||||||
Net income available to participating securities |
|
|
584 |
|
|
|
518 |
|
|
|
|
|
|
|
|
||||||
Non-controlling interests |
|
|
988 |
|
|
|
1,163 |
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
270,912 |
|
|
|
243,408 |
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
532,414 |
|
|
|
501,128 |
|
|
|
|
|
|
|
|
||||||
Property management expense |
|
|
98,252 |
|
|
|
70,563 |
|
|
|
|
|
|
|
|
||||||
General and administrative |
|
|
66,673 |
|
|
|
59,957 |
|
|
|
|
|
|
|
|
||||||
Casualty losses, impairment, and other (1) |
|
|
35,362 |
|
|
|
5,527 |
|
|
|
|
|
|
|
|
||||||
Gain on sale of property, net of tax |
|
|
(141,531 |
) |
|
|
(134,448 |
) |
|
|
|
|
|
|
|
||||||
(Gains) losses on investments in equity securities, net |
|
|
(1,038 |
) |
|
|
(113 |
) |
|
|
|
|
|
|
|
||||||
Other, net (2) |
|
|
57,384 |
|
|
|
7,968 |
|
|
|
|
|
|
|
|
||||||
Management fee revenues |
|
|
(48,898 |
) |
|
|
(10,227 |
) |
|
|
|
|
|
|
|
||||||
Losses from investments in unconsolidated joint ventures |
|
|
22,780 |
|
|
|
11,087 |
|
|
|
|
|
|
|
|
||||||
NOI (Total Portfolio) |
|
|
1,204,105 |
|
|
|
1,145,937 |
|
|
|
|
|
|
|
|
||||||
Non-Same Store NOI |
|
|
(77,483 |
) |
|
|
(67,499 |
) |
|
|
|
|
|
|
|
||||||
Same Store NOI |
|
$ |
1,126,622 |
|
|
$ |
1,078,438 |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) For Q3 2024 and YTD 2024, includes $14.0 million of estimated losses and damages, net of estimated insurance recoveries, related to Hurricanes Beryl, Debby, and Helene. |
|||||||||||||||||||||
(2) Includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses. |
|||||||||||||||||||||
Reconciliation of Net Income to Adjusted EBITDAre |
|||||||||||||||||
(in thousands, unaudited) |
|||||||||||||||||
|
|
Q3 2024 |
|
Q3 2023 |
|
YTD 2024 |
|
YTD 2023 |
|
||||||||
Net income available to common stockholders |
|
$ |
95,084 |
|
|
$ |
131,637 |
|
|
$ |
310,223 |
|
|
$ |
389,406 |
|
|
Net income available to participating securities |
|
|
185 |
|
|
|
181 |
|
|
|
584 |
|
|
|
518 |
|
|
Non-controlling interests |
|
|
309 |
|
|
|
403 |
|
|
|
988 |
|
|
|
1,163 |
|
|
Interest expense |
|
|
91,060 |
|
|
|
86,736 |
|
|
|
270,912 |
|
|
|
243,408 |
|
|
Interest expense in unconsolidated joint ventures |
|
|
10,186 |
|
|
|
5,051 |
|
|
|
20,970 |
|
|
|
12,774 |
|
|
Depreciation and amortization |
|
|
180,479 |
|
|
|
170,696 |
|
|
|
532,414 |
|
|
|
501,128 |
|
|
Depreciation and amortization of investments in unconsolidated joint ventures |
|
|
3,590 |
|
|
|
2,690 |
|
|
|
9,875 |
|
|
|
7,686 |
|
|
EBITDA |
|
|
380,893 |
|
|
|
397,394 |
|
|
|
1,145,966 |
|
|
|
1,156,083 |
|
|
Gain on sale of property, net of tax |
|
|
(47,766 |
) |
|
|
(57,989 |
) |
|
|
(141,531 |
) |
|
|
(134,448 |
) |
|
Impairment on depreciated real estate investments |
|
|
270 |
|
|
|
83 |
|
|
|
330 |
|
|
|
342 |
|
|
Net (gain) loss on sale of investments in unconsolidated joint ventures |
|
|
499 |
|
|
|
(554 |
) |
|
|
285 |
|
|
|
(1,188 |
) |
|
EBITDAre |
|
|
333,896 |
|
|
|
338,934 |
|
|
|
1,005,050 |
|
|
|
1,020,789 |
|
|
Share-based compensation expense |
|
|
5,417 |
|
|
|
8,929 |
|
|
|
20,809 |
|
|
|
21,493 |
|
|
Severance |
|
|
209 |
|
|
|
392 |
|
|
|
388 |
|
|
|
916 |
|
|
Casualty losses, net (1)(2) |
|
|
20,729 |
|
|
|
2,429 |
|
|
|
35,174 |
|
|
|
5,214 |
|
|
(Gains) losses on investments in equity and other securities, net |
|
|
257 |
|
|
|
499 |
|
|
|
(1,038 |
) |
|
|
(113 |
) |
|
Other, net (3) |
|
|
9,345 |
|
|
|
2,533 |
|
|
|
57,384 |
|
|
|
7,968 |
|
|
Adjusted EBITDAre |
|
$ |
369,853 |
|
|
$ |
353,716 |
|
|
$ |
1,117,767 |
|
|
$ |
1,056,267 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Trailing Twelve Months (TTM) Ended |
|
|||||||||||||||
|
|
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
|
||||||||
Net income available to common stockholders |
|
|
|
$ |
439,591 |
|
|
$ |
518,774 |
|
|
|
|
||||
Net income available to participating securities |
|
|
|
|
762 |
|
|
|
696 |
|
|
|
|
||||
Non-controlling interests |
|
|
|
|
1,383 |
|
|
|
1,558 |
|
|
|
|
||||
Interest expense |
|
|
|
|
360,961 |
|
|
|
333,457 |
|
|
|
|
||||
Interest expense in unconsolidated joint ventures |
|
|
|
|
26,451 |
|
|
|
18,255 |
|
|
|
|
||||
Depreciation and amortization |
|
|
|
|
705,573 |
|
|
|
674,287 |
|
|
|
|
||||
Depreciation and amortization of investments in unconsolidated joint ventures |
|
12,658 |
|
|
|
10,469 |
|
|
|
|
|||||||
EBITDA |
|
|
|
|
1,547,379 |
|
|
|
1,557,496 |
|
|
|
|
||||
Gain on sale of property, net of tax |
|
|
|
|
(190,623 |
) |
|
|
(183,540 |
) |
|
|
|
||||
Impairment on depreciated real estate investments |
|
|
|
|
415 |
|
|
|
427 |
|
|
|
|
||||
Net gain on sale of investments in unconsolidated joint ventures |
|
(195 |
) |
|
|
(1,668 |
) |
|
|
|
|||||||
EBITDAre |
|
|
|
|
1,356,976 |
|
|
|
1,372,715 |
|
|
|
|
||||
Share-based compensation expense |
|
|
|
|
28,819 |
|
|
|
29,503 |
|
|
|
|
||||
Severance |
|
|
|
|
449 |
|
|
|
977 |
|
|
|
|
||||
Casualty losses, net (1)(2) |
|
|
|
|
38,160 |
|
|
|
8,200 |
|
|
|
|
||||
(Gains) losses on investments in equity and other securities, net |
|
(1,275 |
) |
|
|
(350 |
) |
|
|
|
|||||||
Other, net (3) |
|
|
|
|
51,851 |
|
|
|
2,435 |
|
|
|
|
||||
Adjusted EBITDAre |
|
|
|
$ |
1,474,980 |
|
|
$ |
1,413,480 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes the Company’s share from unconsolidated joint ventures. |
|||||||||||||||||
(2) For Q3 2024 and YTD 2024, includes $14.0 million of estimated losses and damages, net of estimated insurance recoveries, related to Hurricanes Beryl, Debby, and Helene. |
|||||||||||||||||
(3) Includes settlement and other costs related to certain litigation and regulatory matters, 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 |
|
|
||||
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
||||
Mortgage loans, net |
|
$ |
1,614,220 |
|
|
$ |
1,627,256 |
|
|
|
Secured term loan, net |
|
|
401,595 |
|
|
|
401,515 |
|
|
|
Unsecured notes, net |
|
|
3,799,034 |
|
|
|
3,305,467 |
|
|
|
Term loan facility, net |
|
|
2,444,054 |
|
|
|
3,211,814 |
|
|
|
Revolving facility |
|
|
750,000 |
|
|
|
— |
|
|
|
Total Debt per Balance Sheet |
|
|
9,008,903 |
|
|
|
8,546,052 |
|
|
|
Retained and repurchased certificates |
|
|
(87,063 |
) |
|
|
(87,703 |
) |
|
|
Cash, ex-security deposits and letters of credit (1) |
|
|
(1,062,179 |
) |
|
|
(713,898 |
) |
|
|
Deferred financing costs, net |
|
|
64,086 |
|
|
|
45,518 |
|
|
|
Unamortized discounts on note payable |
|
|
25,100 |
|
|
|
21,376 |
|
|
|
Net Debt (A) |
|
$ |
7,948,847 |
|
|
$ |
7,811,345 |
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the TTM Ended |
|
For the TTM Ended |
|
|
||||
|
|
September 30, 2024 |
|
December 31, 2023 |
|
|
||||
Adjusted EBITDAre (B) |
|
$ |
1,474,980 |
|
|
$ |
1,413,480 |
|
|
|
|
|
|
|
|
|
|
||||
Net Debt / TTM Adjusted EBITDAre (A / B) |
|
5.4x |
|
5.5x |
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
(1) Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit |
||||||||||
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
