Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 1
Earnings Press Release
Invitation Homes Reports Third Quarter 2021 Results
Dallas, TX, October 27, 2021 — Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), the nation's premier single-family home leasing company, today announced its Q3 2021 financial and operating results.
Third Quarter 2021 Highlights
•Year over year, total revenues increased 11.0% to $510 million, and property operating and maintenance costs increased 3.6% to $184 million.
•Net income available to common stockholders totaled $69 million or $0.12 per diluted common share.
•Year over year, Core FFO per share increased 27.0% to $0.38, and AFFO per share increased 32.7% to $0.32.
•Same Store NOI grew 11.9% year over year on 7.9% Same Store Core Revenues growth and 0.6% Same Store Core Operating Expenses growth.
•Same Store Average Occupancy was 98.1%, up 30 basis points year over year.
•Same Store new lease rent growth of 18.4% and Same Store renewal rent growth of 7.8% drove Same Store blended rent growth of 10.6%, up 660 basis points year over year.
•Revenue collections were approximately 98% of the Company's historical average collection rate. Bad debt as a percentage of gross rental revenue decreased from 2.0% in 3Q 2020 to 1.0% in 3Q 2021.
•The Company accelerated its acquisition pace in 3Q 2021. Acquisitions by the Company and the Company's joint ventures totaled 1,684 homes for $722 million while dispositions totaled 161 homes for $57 million.
•The Company issued and sold 17,451,969 shares of common stock for net proceeds of $693 million. Subsequent to quarter end, in October 2021, the Company sold an additional 1,875,000 shares pursuant to the underwriters’ full exercise of the option to purchase additional shares, generating net proceeds of $75 million. The proceeds from these issuances were and will be used primarily for general corporate purposes, including acquisitions.
•As previously announced in August 2021, the Company closed its first public bond offering of $650 million aggregate principal with a fixed coupon of 2.00%. Net proceeds were used to voluntarily prepay secured indebtedness.
•In conjunction with this release, the Company is raising its full year 2021 guidance as follows: increasing and narrowing its Same Store Core Revenues growth by 87.5 basis points at the midpoint to 6.375%; decreasing its Same Store Core Operating Expenses growth by 150 basis points at the midpoint to 1.5%; and increasing its Same Store NOI growth by 200 basis points at the midpoint to 9.0%. The Company is also raising its full year 2021 guidance for Core FFO per share by $0.05 at the midpoint to $1.49 and for AFFO per share by $0.04 at the midpoint to $1.28. Additionally, as previously announced, the Company increased its full year 2021 acquisition target from $1.0 billion to between $1.7 billion and $1.8 billion.
•The Company is pleased to announce that it has achieved a 13.2% increase on its Global Real Estate Sustainability Benchmark (“GRESB”) score from 2020 to 2021. As a result, the Company has surpassed its sustainability performance threshold to trigger a one basis point improvement in pricing on its revolving line of credit. The Company remains committed to sustainability transparency and improving performance. For additional information, please visit www.invitationhomes.com/sustainability.
President & Chief Executive Officer Dallas Tanner comments:
"We are pleased to announce another strong quarter of operating and financial results. Fundamentals remain as supportive as ever, and we believe our ability to identify and capture accretive growth opportunities that complement our portfolio of well-located, high-quality homes is second to none. As a result of these attributes and our execution, including our premier resident experience from our best-in-class teams, we have once again raised our full year guidance."
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 2
Financial Results
Net Income, FFO, Core FFO, and AFFO Per Share — Diluted(1)
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Net income
$
0.12
$
0.06
$
0.33
$
0.23
FFO
0.35
0.27
1.00
0.89
Core FFO
0.38
0.30
1.11
0.96
AFFO
0.32
0.24
0.95
0.81
(1)See "Reconciliation of FFO, Core FFO, and AFFO," footnotes (1) and (2), for details on the treatment of convertible notes in each specific period presented in the table.
Net Income
Net income per share in the third quarter of 2021 was $0.12, compared to net income per share of $0.06 in the third quarter of 2020. Total revenues and total property operating and maintenance expenses in the third quarter of 2021 were $510 million and $184 million, respectively, compared to $459 million and $178 million, respectively, in the third quarter of 2020.
Net income per share in YTD 2021 was $0.33, compared to net income per share of $0.23 in YTD 2020. Total revenues and total property operating and maintenance expenses in YTD 2021 were $1,476 million and $528 million, respectively, compared to $1,359 million and $512 million, respectively, in YTD 2020.
Core FFO
Year over year, Core FFO per share in the third quarter of 2021 increased 27.0% to $0.38, primarily due to NOI growth and interest expense savings.
Year over year, Core FFO per share in YTD 2021 increased 14.9% to $1.11, primarily due to NOI growth and interest expense savings.
AFFO
Year over year, AFFO per share in the third quarter of 2021 increased 32.7% to $0.32, primarily due to the increase in Core FFO per share described above.
Year over year, AFFO per share in YTD 2021 increased 18.1% to $0.95, primarily due to the increase in Core FFO per share described above.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 3
Operating Results
Same Store Operating Results Snapshot
Number of homes in Same Store Portfolio:
72,423
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Core Revenues growth (year over year)
7.9
%
5.4
%
Core Operating Expenses growth (year over year)
0.6
%
(0.3)
%
NOI growth (year over year)
11.9
%
8.3
%
Average Occupancy
98.1
%
97.8
%
98.3
%
97.3
%
Bad debt % of gross rental revenues (1)
1.0
%
2.0
%
1.7
%
1.4
%
Turnover Rate
6.3
%
7.4
%
18.2
%
20.7
%
Rental Rate Growth (lease-over-lease):
Renewals
7.8
%
3.2
%
6.1
%
3.6
%
New leases
18.4
%
5.6
%
13.6
%
3.5
%
Blended
10.6
%
4.0
%
8.1
%
3.6
%
(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
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Pre-COVID Average (2)
Revenues collected % of revenues due: (1)
Revenues collected in same month billed
92
%
92
%
91
%
91
%
96
%
Late collections of prior month billings
5
%
6
%
6
%
5
%
3
%
Total collections
97
%
98
%
97
%
96
%
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 72,423 homes, third quarter 2021 Same Store NOI increased 11.9% year over year on Same Store Core Revenues growth of 7.9% and Same Store Core Operating Expenses growth of 0.6%.
YTD 2021 Same Store NOI increased 8.3% year over year on Same Store Core Revenues growth of 5.4% and a 0.3% decrease in Same Store Core Operating Expenses.
Same Store Core Revenues
Third quarter 2021 Same Store Core Revenues growth of 7.9% year over year was driven by a 5.8% increase in Average Monthly Rent, a 30 basis point increase in Average Occupancy to 98.1%, a 100 basis points year over year improvement in bad debt as a percentage of gross rental revenue, and a 39.5% increase in Other income, net of resident recoveries.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 4
YTD 2021 Same Store Core Revenues growth of 5.4% year over year was driven by a 4.4% increase in Average Monthly Rent, a 100 basis point increase in Average Occupancy to 98.3%, and a 14.1% increase in Other income, net of resident recoveries. Bad debt increased from 1.4% of gross rental revenues in YTD 2020 to 1.7% of gross rental revenues in YTD 2021, which was a 29 basis point drag on Same Store Core Revenues growth, all else equal.
Same Store Core Operating Expenses
Third quarter 2021 Same Store Core Operating Expenses increased 0.6% year over year, driven by a 3.5% increase in Same Store fixed expenses, partially offset by a 4.0% decline in Same Store controllable expenses, net of resident recoveries.
YTD 2021 Same Store Core Operating Expenses decreased 0.3% year over year, driven by a 5.3% decline in Same Store controllable expenses, net of resident recoveries, partially offset by a 2.8% increase in Same Store fixed expenses.
Investment Management Activity
Invitation Homes increased its acquisition pace during 3Q 2021. Third quarter 2021 acquisitions totaled 1,684 homes for $722 million through multiple acquisition channels. This included 1,082 wholly owned homes for $477 million and 602 homes for $245 million in the Company's unconsolidated joint venture with the Rockpoint Group (the "Rockpoint JV"). Invitation Homes owns 20% of the Rockpoint JV, which owned a total of 1,422 homes as of September 30, 2021.
Dispositions in the third quarter of 2021 included 145 wholly owned homes for gross proceeds of $51 million and 16 homes for gross proceeds of $6 million in the Company's unconsolidated joint venture with the Federal National Mortgage Association (the "FNMA JV").
Year to date through September 30, 2021, the Company acquired 3,259 homes for $1,291 million, including 1,977 wholly owned homes for $810 million and 1,282 homes for $481 million in the Rockpoint JV. The Company also sold 644 homes for $212 million, including 605 wholly owned homes for $197 million and 39 homes for $15 million in the FNMA JV.
Balance Sheet and Capital Markets Activity
As of September 30, 2021, the Company had $1,570 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, 2021, was $7,870 million, consisting of $4,273 million of secured debt and $3,597 million of unsecured debt.
The Company issued and sold 17,451,969 shares of common stock for net proceeds of $693 million. Of the shares issued during the quarter, 12,500,000 were sold through a public offering that was previously announced in September, and 4,951,969 shares were sold through the Company's at the market equity program, under which $300 million of gross capacity remained as of September 30, 2021. Subsequent to quarter end, in October 2021, the Company sold 1,875,000 shares pursuant to the underwriters’ full exercise of the option to purchase additional shares, generating net proceeds of $75 million. The proceeds from these issuances were and will be used primarily for general corporate purposes, including acquisitions.
As previously announced in August 2021, the Company closed its first public bond offering of $650 million aggregate principal with a fixed coupon of 2.00% (the "Senior Notes"). The Senior Notes were priced at 98.396% of the principal amount and will mature on August 15, 2031. Net proceeds were used to voluntarily prepay secured indebtedness.
As previously announced in July 2021, the Company gave notice of its intent to settle conversions of its 3.5% Convertible Notes due January 15, 2022 (the "2022 Convertible Notes"), with common stock. As of September 30, 2021, the Company settled $199 million of principal balance outstanding of the 2022 Convertible Notes with the issuance of 8,723,421 shares of its common stock. On a pro forma basis, whereby net debt is reduced for the impact of the conversion of remaining 2022 Convertible Notes, Net Debt / Trailing Twelve Months Adjusted EBITDAre at September 30, 2021, would have been 6.1x, down from 6.2x on an as-reported basis, and from 7.3x at the end of 2020 on an as-reported basis, with no debt reaching final maturity until December 2024.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 5
Dividend
As previously announced on October 22, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.17 per share of common stock. The dividend will be paid on or before November 24, 2021, to stockholders of record as of the close of business on November 9, 2021.
FY 2021 Guidance Update
FY 2021 Guidance
Current
Previous
FY 2021
FY 2021
Guidance
Guidance
Core FFO per share — diluted
$1.47 - $1.51
$1.40 - $1.48
AFFO per share — diluted
$1.26 - $1.30
$1.20 - $1.28
Same Store Core Revenues growth
6.25% - 6.5%
5.0% - 6.0%
Same Store Core Operating Expenses growth
1.0% - 2.0%
2.5% - 3.5%
Same Store NOI growth
8.5% - 9.5%
6.5% - 7.5%
Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income (loss), total revenues, and property operating and maintenance expense, or a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses growth, and Same Store NOI growth to the comparable GAAP financial measures because it is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance period.
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on October 28, 2021, to discuss results for the third quarter of 2021. The domestic dial-in number is 1-844-200-6205, and the international dial-in number is 1-929-526-1599. The passcode is 889970. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through November 25, 2021, and can be accessed by calling 1-866-813-9403 (domestic) or 1-929-458-6194 (international) and using the replay passcode 768378, or by using the link at www.invh.com.
Supplemental Information
The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes' Investor Relations website at www.invh.com.
Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures
Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States ("GAAP"). These measures are defined herein and, as applicable, reconciled to the most comparable GAAP measures.
About Invitation Homes
Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
Q2 2021 Earnings Release and Supplemental Information - page 6
Investor Relations Contact
Scott McLaughlin Phone: 844.456.INVH (4684) Email: IR@InvitationHomes.com
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 (“HOA”) fees, and insurance costs, the Company's dependence on third parties for key services, risks related to the evaluation of properties, poor resident selection and defaults and non-renewals by the Company's residents, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of the ongoing COVID-19 pandemic on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Moreover, many of these factors have been heightened as a result of the ongoing and numerous adverse impacts of COVID-19. 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 fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's other filings with the SEC. 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.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 7
Consolidated Balance Sheets
($ in thousands, except shares and per share data)
September 30, 2021
December 31, 2020
(unaudited)
Assets:
Investments in single-family residential properties, net
$
16,653,447
$
16,288,693
Cash and cash equivalents
569,663
213,422
Restricted cash
251,487
198,346
Goodwill
258,207
258,207
Investments in unconsolidated joint ventures
93,096
69,267
Other assets, net
424,666
478,287
Total assets
$
18,250,566
$
17,506,222
Liabilities:
Mortgage loans, net
$
3,857,863
$
4,820,098
Secured term loan, net
401,258
401,095
Unsecured notes, net
931,889
—
Term loan facility, net
2,476,309
2,470,907
Revolving facility
—
—
Convertible senior notes, net
145,818
339,404
Accounts payable and accrued expenses
297,073
149,299
Resident security deposits
163,663
157,936
Other liabilities
453,448
611,410
Total liabilities
8,727,321
8,950,149
Equity:
Stockholders' equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of September 30, 2021 and December 31, 2020
—
—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 594,893,674 and 567,117,666 outstanding as of September 30, 2021 and December 31, 2020, respectively
5,949
5,671
Additional paid-in capital
10,622,691
9,707,258
Accumulated deficit
(767,232)
(661,162)
Accumulated other comprehensive loss
(378,428)
(546,942)
Total stockholders' equity
9,482,980
8,504,825
Non-controlling interests
40,265
51,248
Total equity
9,523,245
8,556,073
Total liabilities and equity
$
18,250,566
$
17,506,222
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 8
Consolidated Statements of Operations
($ in thousands, except shares and per share amounts) (unaudited)
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Revenues:
Rental revenues
$
464,086
$
424,191
$
1,351,332
$
1,257,858
Other property income
44,092
34,993
121,918
100,870
Joint venture management fees
1,354
—
3,140
—
Total revenues
509,532
459,184
1,476,390
1,358,728
Expenses:
Property operating and maintenance
184,484
177,997
528,279
511,915
Property management expense
17,886
14,824
51,424
43,725
General and administrative
19,369
17,972
56,147
46,626
Interest expense
79,370
87,713
243,540
258,541
Depreciation and amortization
150,694
138,147
440,475
410,440
Impairment and other
4,294
1,723
5,630
4,670
Total expenses
456,097
438,376
1,325,495
1,275,917
Gains (losses) on investments in equity securities, net
4,319
—
(5,823)
34
Other, net
(1,508)
(3,049)
(3,181)
2,001
Gain on sale of property, net of tax
13,047
15,106
45,450
41,473
Income from investments in unconsolidated joint ventures
202
—
564
—
Net income
69,495
32,865
187,905
126,319
Net income attributable to non-controlling interests
(318)
(211)
(1,023)
(806)
Net income attributable to common stockholders
69,177
32,654
186,882
125,513
Net income available to participating securities
(69)
(114)
(260)
(335)
Net income available to common stockholders — basic and diluted
$
69,108
$
32,540
$
186,622
$
125,178
Weighted average common shares outstanding — basic
577,011,178
560,598,995
570,808,028
550,722,684
Weighted average common shares outstanding — diluted
578,571,392
561,871,373
572,262,198
551,947,278
Net income per common share — basic
$
0.12
$
0.06
$
0.33
$
0.23
Net income per common share — diluted
$
0.12
$
0.06
$
0.33
$
0.23
Dividends declared per common share
$
0.17
$
0.15
$
0.51
$
0.45
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 9
Supplemental Schedule 1
Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)
FFO Reconciliation
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Net income available to common stockholders
$
69,108
$
32,540
$
186,622
$
125,178
Net income available to participating securities
69
114
260
335
Non-controlling interests
318
211
1,023
806
Depreciation and amortization on real estate assets
148,957
136,517
435,348
406,078
Impairment on depreciated real estate investments
126
289
650
4,202
Net gain on sale of previously depreciated investments in real estate
(13,047)
(15,106)
(45,450)
(41,473)
Depreciation and net gain on sale of investments in unconsolidated joint ventures
29
—
(61)
—
FFO
$
205,560
$
154,565
$
578,392
$
495,126
Core FFO Reconciliation
Q3 2021
Q3 2020
YTD 2021
YTD 2020
FFO
$
205,560
$
154,565
$
578,392
$
495,126
Non-cash interest expense, including the Company's share from unconsolidated joint ventures
9,004
6,883
25,791
26,640
Share-based compensation expense
6,052
6,086
21,072
12,293
Severance expense
226
133
500
388
Casualty losses, net
4,168
1,434
4,980
468
(Gains) losses on investments in equity securities, net
(4,319)
—
5,823
(34)
Core FFO
$
220,691
$
169,101
$
636,558
$
534,881
AFFO Reconciliation
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Core FFO
$
220,691
$
169,101
$
636,558
$
534,881
Recurring capital expenditures, including the Company's share from unconsolidated joint ventures
(36,248)
(33,861)
(89,437)
(87,466)
Adjusted FFO
$
184,443
$
135,240
$
547,121
$
447,415
Net income available to common stockholders
Weighted average common shares outstanding — diluted (1)
578,571,392
561,871,373
572,262,198
551,947,278
Net income per common share — diluted (1)
$
0.12
$
0.06
$
0.33
$
0.23
FFO
Numerator for FFO per common share — diluted(1)
$
205,560
$
154,565
$
590,923
$
507,995
Weighted average common shares and OP Units outstanding — diluted (1)
581,333,229
565,655,768
588,603,771
570,851,976
FFO per share — diluted (1)
$
0.35
$
0.27
$
1.00
$
0.89
Core FFO and Adjusted FFO
Weighted average common shares and OP Units outstanding — diluted (2)
581,333,229
565,655,768
575,639,449
555,751,533
Core FFO per share — diluted (2)
$
0.38
$
0.30
$
1.11
$
0.96
AFFO per share — diluted (2)
$
0.32
$
0.24
$
0.95
$
0.81
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 10
Supplemental Schedule 1 (Continued)
(1)During Q3 2021 and YTD 2021, at the election of the noteholders, the Company settled $199 million of principal balance outstanding of the 2022 Convertible Notes with the issuance of 8,723,161 and 8,723,421 shares of its common stock, respectively. For the period subsequent to such conversion dates, shares issued in connection with any settled conversions of the 2022 Convertible Notes are included within weighted shares outstanding and therefore impact diluted per share information.
In accordance with GAAP and Nareit guidelines, net income per share — diluted and FFO per share — diluted include the effect of shares issuable in respect of the 2022 Convertible Notes if such shares are dilutive to the calculation.
In Q3 2021 and Q3 2020, the effect of the shares issuable in respect of the 2022 Convertible Notes is anti-dilutive to both net income per share and FFO per share. As such, these quarter to date measures are not adjusted for conversion of the 2022 Convertible Notes.
In YTD 2021 and YTD 2020, the effect of the shares issuable in respect of the 2022 Convertible Notes is anti-dilutive to net income per share and dilutive to FFO per share. As such, YTD net income per share is not adjusted for conversion of the 2022 Convertible Notes, and YTD FFO per share considers the dilutive effect of the 2022 Convertible Notes by removing the related interest expense from the numerator and increasing the denominator to include shares issuable on conversion of the 2022 Convertible Notes.
(2)Core FFO and AFFO per share reflect the 2022 Convertible Notes in the form in which they were outstanding during each period. As such, Core FFO and AFFO per share do not treat the outstanding 2022 Convertible Notes as if converted for each of the periods presented.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 11
Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
Weighted Average Amounts for Net Income (1)
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Common shares — basic
577,011,178
560,598,995
570,808,028
550,722,684
Shares potentially issuable from vesting/conversion of equity-based awards
1,560,214
1,272,378
1,454,170
1,224,594
Total common shares — diluted
578,571,392
561,871,373
572,262,198
551,947,278
Weighted average amounts for FFO (1)
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Common shares — basic
577,011,178
560,598,995
570,808,028
550,722,684
OP units — basic
2,538,285
3,463,285
3,074,549
3,463,285
Shares potentially issuable from vesting/conversion of equity-based awards
1,783,766
1,593,488
1,756,872
1,565,564
Shares issuable from the 2022 Convertible Notes
—
—
12,964,322
15,100,443
Total common shares and units — diluted
581,333,229
565,655,768
588,603,771
570,851,976
Weighted average amounts for Core and AFFO (2)
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Common shares — basic
577,011,178
560,598,995
570,808,028
550,722,684
OP units — basic
2,538,285
3,463,285
3,074,549
3,463,285
Shares potentially issuable from vesting/conversion of equity-based awards
1,783,766
1,593,488
1,756,872
1,565,564
Total common shares and units — diluted
581,333,229
565,655,768
575,639,449
555,751,533
Period end amounts for Core FFO, and AFFO (2)
September 30, 2021
Common shares
594,893,674
OP units
2,538,285
Shares potentially issuable from vesting/conversion of equity-based awards
1,549,345
Total common shares and units — diluted
598,981,304
(1)See "Supplemental Schedule 1," footnote (1), for details on the treatment of the 2022 Convertible Notes in each specific period presented in the table.
(2)See "Supplemental Schedule 1," footnote (2), for details on the treatment of the 2022 Convertible Notes in each specific period presented in the table.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 12
Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — September 30, 2021
($ in thousands) (unaudited)
Wtd Avg
Wtd Avg
Interest
Years
Debt Structure
Balance
% of Total
Rate (1)
to Maturity (2)
Secured:
Fixed (3)
$
1,399,111
17.8
%
4.0
%
6.8
Floating — swapped to fixed
2,670,000
33.9
%
3.9
%
3.8
Floating
204,356
2.6
%
1.2
%
3.8
Total secured
4,273,467
54.3
%
3.8
%
4.8
Unsecured:
Fixed
1,096,491
13.9
%
2.4
%
8.8
Floating — swapped to fixed
2,500,000
31.8
%
3.5
%
4.3
Floating
—
—
%
—
%
—
Total unsecured
3,596,491
45.7
%
3.2
%
5.7
Total Debt:
Fixed + floating swapped to fixed (3)
7,665,602
97.4
%
3.6
%
5.2
Floating
204,356
2.6
%
1.2
%
3.8
Total debt
7,869,958
100.0
%
3.5
%
5.2
Unamortized discounts on notes payable
(13,002)
Deferred financing costs, net
(43,819)
Total Debt per Balance Sheet
7,813,137
Retained and repurchased certificates
(199,280)
Cash, ex-security deposits and letters of credit (4)
(653,475)
Deferred financing costs, net
43,819
Unamortized discounts on notes payable
13,002
Net debt
$
7,017,203
Leverage Ratios
September 30, 2021
Net Debt / TTM Adjusted EBITDAre (5)
6.2
x
Credit Ratings
Ratings
Outlook
Fitch Ratings, Inc.
BBB
Stable
Moody's Investor Services
Baa3
Stable
Standard & Poor's Rating Services
BBB-
Stable
Unsecured Facility Covenant Compliance (6)
Unsecured Public Bond Covenant Compliance (7)
Actual
Requirement
Actual
Requirement
Total leverage ratio
34.5
%
≤ 60%
Aggregate debt ratio
37.1
%
≤ 65%
Secured leverage ratio
18.4
%
≤ 45%
Secured debt ratio
19.7
%
≤ 40%
Unencumbered leverage ratio
28.6
%
≤ 60%
Unencumbered assets ratio
358.0
%
≥ 150%
Fixed charge coverage ratio
4.0 x
≥ 1.5x
Debt service ratio
4.0 x
≥ 1.5x
Unsecured interest coverage ratio
6.2 x
≥ 1.75x
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 13
Supplemental Schedule 2(b) (Continued)
(1)Includes the impact of interest rate swaps in place and effective as of September 30, 2021.
(2)Assumes all extension options are exercised.
(3)For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.
(4)Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit.
(5)In July 2021, the Company gave notice of intent to settle conversions of its 2022 Convertible Notes with common stock. As of September 30, 2021, $199 million of principal was converted into 8,723,421 shares of common stock at the election of the note holders. Net Debt / Trailing Twelve Months Adjusted EBITDAre presented in the table does not take into account the impact of the conversions of the remaining $146 million (par value) of the 2022 Convertible Notes outstanding as of September 30, 2021. On a pro forma basis, whereby net debt is reduced for the impact of the conversion of the remaining $146 million (par value) 2022 Convertible Notes, Net Debt / Trailing Twelve Months Adjusted EBITDAre at September 30, 2021, would have been 6.1x.
(6)Covenant calculations are specifically defined in the Company's Amended and Restated Revolving Credit and Term Loan Agreement, and summarized in the "Glossary and Reconciliations" section of this report. For the purpose of calculating property value in applicable covenant metrics, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
(7)Covenant calculations are specifically defined in the Company's First Supplemental Indenture to the Base Indenture for its Senior Notes due 2031, and summarized in the "Glossary and Reconciliations" section of this report. Property values for the purpose of applicable covenant metrics are calculated based on undepreciated book value.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 14
Supplemental Schedule 2(c)
Debt Maturity Schedule — September 30, 2021 (1)
($ in thousands) (unaudited)
Revolving
Secured
Unsecured
Credit
% of
Debt Maturities, with Extensions (2)
Debt
Debt
Facility
Balance
Total
2021
$
—
$
—
$
—
$
—
—
%
2022
—
146,491
—
146,491
1.9
%
2023
—
—
—
—
—
%
2024
184,400
—
—
184,400
2.3
%
2025
2,019,036
—
—
2,019,036
25.7
%
2026
670,920
2,500,000
—
3,170,920
40.2
%
2027
995,748
—
—
995,748
12.7
%
2028
—
150,000
—
150,000
1.9
%
2029
—
—
—
—
—
%
2030
—
—
—
—
—
%
2031
403,363
650,000
—
1,053,363
13.4
%
2032
—
—
—
—
—
%
2033
—
—
—
—
—
%
2034
—
—
—
—
—
%
2035
—
—
—
—
—
%
2036
—
150,000
—
150,000
1.9
%
4,273,467
3,596,491
—
7,869,958
100.0
%
Unamortized discounts on notes payable
(2,025)
(10,977)
—
(13,002)
Deferred financing costs
(12,321)
(31,498)
—
(43,819)
Total per Balance Sheet
$
4,259,121
$
3,554,016
$
—
$
7,813,137
(1)In July 2021, the Company gave notice of intent to settle conversions of its 2022 Convertible Notes with common stock. As of September 30, 2021, $199 million of principal was converted into 8,723,421 shares of common stock at the election of the note holders. The impact of the conversions of the remaining $146 million (par value) of the 2022 Convertible Notes outstanding as of September 30, 2021, is not included in the table.
(2)Assumes all extension options are exercised.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 15
Supplemental Schedule 2(d)
Cost to Maturity of Debt as of September 30, 2021 (1)
($ in thousands) (unaudited)
Percentage of Weighted Average Debt Outstanding by Type
Weighted Average Cost by Instrument Type
Weighted Average
Issued
Issued
Total
Spread to
Fixed Cost
Total Debt
Amount of
Floating
Floating
Fixed
LIBOR
of
Including
Debt
and
but Swapped
Issued
or Swapped
For Floating
Interest Rate
Fixed Rate
Swap
Outstanding (2)
Not Swapped
to Fixed
Fixed (3)
to Fixed
Rate Debt
Swaps
Debt
Impact (4)
4Q21
$
7,869,958
2.6
%
65.7
%
31.7
%
97.4
%
1.0
%
2.6
%
3.3
%
3.5
%
2022
7,729,487
2.6
%
66.9
%
30.5
%
97.4
%
1.0
%
2.7
%
3.3
%
3.6
%
2023
7,723,467
2.6
%
66.9
%
30.5
%
97.4
%
1.0
%
2.8
%
3.3
%
3.6
%
2024
7,712,383
3.4
%
66.2
%
30.4
%
96.6
%
1.0
%
2.8
%
3.3
%
3.6
%
2025
6,328,701
38.6
%
24.3
%
37.1
%
61.4
%
1.1
%
3.0
%
3.3
%
2.7
%
2026
2,577,983
8.9
%
—
%
91.1
%
91.1
%
1.0
%
N/A
3.3
%
3.1
%
2027
1,789,855
—
%
—
%
100.0
%
100.0
%
N/A
N/A
3.0
%
3.0
%
2028
1,263,199
—
%
—
%
100.0
%
100.0
%
N/A
N/A
2.7
%
2.7
%
2029
1,203,363
—
%
—
%
100.0
%
100.0
%
N/A
N/A
2.7
%
2.7
%
(1)In July 2021, the Company gave notice of intent to settle conversions of its 2022 Convertible Notes with common stock. As of September 30, 2021, $199 million of principal was converted into 8,723,421 shares of common stock at the election of the note holders. In this table, the remaining $146 million (par value) of the 2022 Convertible Notes outstanding as of September 30, 2021, are assumed to convert in January 2022.
(2)In each period, represents September 30, 2021 debt that remains outstanding assuming all debt is held until final maturity with all extension options exercised.
(3)For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.
(4)Assumes September 30, 2021, LIBOR rate of 0.08% for all future periods.
Note: Schedule 2(d) is presented to show the estimated overall cost of Invitation Homes' debt, based on debt and interest rate swaps in place as of September 30, 2021, as well as the rate for 30-day LIBOR as of September 30, 2021. New debt not presented in this table may be issued, and/or existing debt presented in this table may be repaid prior to maturity. Similarly, new interest rate swaps may be put in place. 30-day LIBOR may also change or be replaced by other alternative benchmark rates. The aforementioned activities may change the amount of outstanding debt, the percentage of debt floating, swapped, or fixed, and/or the weighted average cost of debt and hedging instruments from what is presented in Schedule 2(d).
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 16
Supplemental Schedule 3(a)
Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)
Number of Homes, period-end
Q3 2021
Total Portfolio
81,549
Same Store Portfolio
72,423
Same Store % of Total
88.8
%
Core Revenues
Q3 2021
Q3 2020
Change YoY
YTD 2021
YTD 2020
Change YoY
Total Portfolio
$
480,206
$
435,509
10.3
%
$
1,394,462
$
1,294,855
7.7
%
Same Store Portfolio
433,259
401,453
7.9
%
1,263,721
1,199,393
5.4
%
Core Operating Expenses
Q3 2021
Q3 2020
Change YoY
YTD 2021
YTD 2020
Change YoY
Total Portfolio
$
156,512
$
154,322
1.4
%
$
449,491
$
448,042
0.3
%
Same Store Portfolio
142,757
141,942
0.6
%
409,536
410,574
(0.3)
%
Net Operating Income
Q3 2021
Q3 2020
Change YoY
YTD 2021
YTD 2020
Change YoY
Total Portfolio
$
323,694
$
281,187
15.1
%
$
944,971
$
846,813
11.6
%
Same Store Portfolio
290,502
259,511
11.9
%
854,185
788,819
8.3
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 17
Supplemental Schedule 3(b)
Same Store Portfolio Core Operating Detail
($ in thousands) (unaudited)
Change
Change
Change
Q3 2021
Q3 2020
YoY
Q2 2021
Seq
YTD 2021
YTD 2020
YoY
Revenues:
Rental revenues (1)
$
419,107
$
391,311
7.1
%
$
407,131
2.9
%
$
1,225,860
$
1,166,201
5.1
%
Other property income, net (1)(2)(3)
14,152
10,142
39.5
%
13,546
4.5
%
37,861
33,192
14.1
%
Core Revenues
433,259
401,453
7.9
%
420,677
3.0
%
1,263,721
1,199,393
5.4
%
Fixed Expenses:
Property taxes
72,059
70,242
2.6
%
70,950
1.6
%
214,342
209,763
2.2
%
Insurance expenses
8,201
7,736
6.0
%
8,222
(0.3)
%
24,335
23,318
4.4
%
HOA expenses
8,990
8,220
9.4
%
8,093
11.1
%
25,201
23,616
6.7
%
Controllable Expenses:
Repairs and maintenance, net (4)
23,322
24,424
(4.5)
%
19,490
19.7
%
59,222
61,501
(3.7)
%
Personnel
16,267
15,115
7.6
%
15,266
6.6
%
46,662
44,964
3.8
%
Turnover, net (4)
8,401
9,209
(8.8)
%
8,129
3.3
%
23,262
25,765
(9.7)
%
Utilities and property administrative, net (4)
2,995
4,029
(25.7)
%
2,906
3.1
%
8,796
12,708
(30.8)
%
Leasing and marketing
2,522
2,967
(15.0)
%
2,577
(2.1)
%
7,716
8,939
(13.7)
%
Core Operating Expenses
142,757
141,942
0.6
%
135,633
5.3
%
409,536
410,574
(0.3)
%
Net Operating Income
$
290,502
$
259,511
11.9
%
$
285,044
1.9
%
$
854,185
$
788,819
8.3
%
(1)All rental revenues and other property income are reflected net of bad debt. 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. Bad debt as a percentage of gross rental revenue in Q3 2021 decreased by 100 basis points from Q3 2020, while the increase in bad debt against rental revenues for YTD 2021 was a 29 basis point drag on year over year Same Store Core Revenues growth.
(2)In light of the COVID-19 pandemic, almost all late fees typically enforced in accordance with lease agreements were not enforced or collected between Q2 2020 and Q1 2021, which resulted in lower other property income, net, during this time period. Since Q2 2021, enforcement and collection of late fees have generally recommenced in all markets where permissible.
(3)Represents other property income net of all resident recoveries, which are reimbursements of charges for which residents are responsible. Same Store resident recoveries totaled $25,259, $21,889, $23,625, $71,281, and $59,474 for Q3 2021, Q3 2020, Q2 2021, YTD 2021, and YTD 2020, respectively.
(4)Expenses are presented net of applicable resident recoveries.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 18
Supplemental Schedule 3(c)
Same Store Quarterly Operating Trends
(unaudited)
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Average Occupancy
98.1
%
98.3
%
98.4
%
98.1
%
97.8
%
Turnover Rate
6.3
%
6.6
%
5.3
%
5.6
%
7.4
%
Trailing four quarters Turnover Rate
23.8
%
24.9
%
25.3
%
26.4
%
N/A
Average Monthly Rent
$
1,989
$
1,941
$
1,914
$
1,898
$
1,880
Rental Rate Growth (lease-over-lease):
Renewals
7.8
%
5.7
%
4.3
%
3.8
%
3.2
%
New leases
18.4
%
13.8
%
8.0
%
6.8
%
5.6
%
Blended
10.6
%
7.9
%
5.4
%
4.8
%
4.0
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 19
Supplemental Schedule 4
Wholly Owned Portfolio Characteristics — As of and for the Quarter Ended September 30, 2021 (1)
(unaudited)
Average
Number of
Average
Average
Monthly
Percent of
Homes
Occupancy
Monthly Rent
Rent PSF
Revenue
Western United States:
Southern California
7,894
98.3
%
$
2,670
$
1.57
12.6
%
Northern California
4,322
96.5
%
2,333
1.50
6.1
%
Seattle
3,908
95.3
%
2,392
1.24
5.5
%
Phoenix
8,626
96.3
%
1,647
0.99
8.8
%
Las Vegas
3,021
97.7
%
1,855
0.93
3.6
%
Denver
2,598
90.6
%
2,241
1.23
3.4
%
Western US Subtotal
30,369
96.4
%
2,181
1.26
40.0
%
Florida:
South Florida
8,239
97.6
%
2,355
1.26
12.1
%
Tampa
8,336
97.8
%
1,831
0.98
9.7
%
Orlando
6,310
97.3
%
1,830
0.98
7.3
%
Jacksonville
1,880
98.2
%
1,832
0.92
2.2
%
Florida Subtotal
24,765
97.6
%
2,006
1.07
31.3
%
Southeast United States:
Atlanta
12,619
97.4
%
1,671
0.81
13.2
%
Carolinas
5,132
96.5
%
1,736
0.81
5.4
%
Southeast US Subtotal
17,751
97.1
%
1,690
0.81
18.6
%
Texas:
Houston
2,139
96.7
%
1,647
0.85
2.2
%
Dallas
2,827
96.7
%
1,915
0.93
3.3
%
Texas Subtotal
4,966
96.7
%
1,799
0.90
5.5
%
Midwest United States:
Chicago
2,573
97.7
%
2,068
1.28
3.2
%
Minneapolis
1,122
96.0
%
2,036
1.04
1.4
%
Midwest US Subtotal
3,695
97.2
%
2,058
1.20
4.6
%
Announced Market-in-Exit:
Nashville (2)
3
33.7
%
3,694
1.06
—
%
Total / Average
81,549
97.0
%
$
1,991
$
1.06
100.0
%
Same Store Total / Average
72,423
98.1
%
$
1,989
$
1.07
90.2
%
(1)All data is for the total wholly owned portfolio, unless otherwise noted.
(2)In December 2019, Invitation Homes announced a plan to fully exit the Nashville market, and sold 708 homes in Nashville in a bulk transaction. The Company is pursuing the sale of the remaining three homes in the market as of September 30, 2021.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 20
Supplemental Schedule 5(a)
Same Store Core Revenues Growth Summary — YoY Quarter
($ in thousands, except avg. monthly rent) (unaudited)
Avg. Monthly Rent
Average Occupancy
Core Revenues
YoY, Q3 2021
# Homes
Q3 2021
Q3 2020
Change
Q3 2021
Q3 2020
Change
Q3 2021
Q3 2020
Change
Western United States:
Southern California
7,577
$
2,670
$
2,533
5.4
%
98.8
%
98.5
%
0.3
%
$
58,822
$
54,659
7.6
%
Northern California
3,826
2,321
2,197
5.6
%
98.6
%
98.7
%
(0.1)
%
26,591
24,595
8.1
%
Seattle
3,264
2,370
2,295
3.3
%
97.7
%
98.1
%
(0.4)
%
22,483
22,082
1.8
%
Phoenix
7,120
1,602
1,465
9.4
%
98.2
%
98.4
%
(0.2)
%
34,937
31,704
10.2
%
Las Vegas
2,416
1,848
1,703
8.5
%
98.3
%
98.6
%
(0.3)
%
13,677
12,089
13.1
%
Denver
1,776
2,193
2,080
5.4
%
96.8
%
98.1
%
(1.3)
%
11,722
11,098
5.6
%
Western US Subtotal
25,979
2,180
2,053
6.2
%
98.3
%
98.4
%
(0.1)
%
168,232
156,227
7.7
%
Florida:
South Florida
7,809
2,368
2,248
5.3
%
98.2
%
96.6
%
1.6
%
55,994
51,086
9.6
%
Tampa
7,687
1,825
1,723
5.9
%
98.4
%
97.6
%
0.8
%
43,251
39,466
9.6
%
Orlando
5,604
1,813
1,720
5.4
%
98.0
%
97.3
%
0.7
%
31,215
28,839
8.2
%
Jacksonville
1,838
1,829
1,734
5.5
%
98.6
%
97.3
%
1.3
%
10,437
9,556
9.2
%
Florida Subtotal
22,938
2,007
1,901
5.6
%
98.3
%
97.2
%
1.1
%
140,897
128,947
9.3
%
Southeast United States:
Atlanta
11,547
1,666
1,563
6.6
%
97.9
%
97.9
%
—
%
58,126
53,427
8.8
%
Carolinas
4,474
1,724
1,629
5.8
%
97.8
%
98.2
%
(0.4)
%
23,484
21,861
7.4
%
Southeast US Subtotal
16,021
1,682
1,582
6.3
%
97.8
%
98.0
%
(0.2)
%
81,610
75,288
8.4
%
Texas:
Houston
1,861
1,645
1,589
3.5
%
97.4
%
97.0
%
0.4
%
9,277
8,841
4.9
%
Dallas
1,956
1,931
1,843
4.8
%
97.8
%
97.5
%
0.3
%
11,147
10,776
3.4
%
Texas Subtotal
3,817
1,792
1,719
4.2
%
97.6
%
97.3
%
0.3
%
20,424
19,617
4.1
%
Midwest United States:
Chicago
2,550
2,069
2,012
2.8
%
98.2
%
98.1
%
0.1
%
15,441
14,871
3.8
%
Minneapolis
1,118
2,037
1,951
4.4
%
96.3
%
98.0
%
(1.7)
%
6,655
6,503
2.3
%
Midwest US Subtotal
3,668
2,060
1,994
3.3
%
97.6
%
98.1
%
(0.5)
%
22,096
21,374
3.4
%
Same Store Total / Average
72,423
$
1,989
$
1,880
5.8
%
98.1
%
97.8
%
0.3
%
$
433,259
$
401,453
7.9
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 21
Supplemental Schedule 5(a) (Continued)
Same Store Core Revenues Growth Summary — Sequential Quarter
($ in thousands, except avg. monthly rent) (unaudited)
Avg. Monthly Rent
Average Occupancy
Core Revenues
Seq, Q3 2021
# Homes
Q3 2021
Q2 2021
Change
Q3 2021
Q2 2021
Change
Q3 2021
Q2 2021
Change
Western United States:
Southern California
7,577
$
2,670
$
2,611
2.3
%
98.8
%
98.8
%
—
%
$
58,822
$
55,713
5.6
%
Northern California
3,826
2,321
2,262
2.6
%
98.6
%
99.0
%
(0.4)
%
26,591
25,206
5.5
%
Seattle
3,264
2,370
2,345
1.1
%
97.7
%
98.8
%
(1.1)
%
22,483
22,353
0.6
%
Phoenix
7,120
1,602
1,549
3.4
%
98.2
%
98.6
%
(0.4)
%
34,937
33,995
2.8
%
Las Vegas
2,416
1,848
1,784
3.6
%
98.3
%
98.5
%
(0.2)
%
13,677
12,889
6.1
%
Denver
1,776
2,193
2,144
2.3
%
96.8
%
98.0
%
(1.2)
%
11,722
11,684
0.3
%
Western US Subtotal
25,979
2,180
2,126
2.5
%
98.3
%
98.7
%
(0.4)
%
168,232
161,840
3.9
%
Florida:
South Florida
7,809
2,368
2,310
2.5
%
98.2
%
98.1
%
0.1
%
55,994
54,668
2.4
%
Tampa
7,687
1,825
1,777
2.7
%
98.4
%
98.2
%
0.2
%
43,251
41,903
3.2
%
Orlando
5,604
1,813
1,769
2.5
%
98.0
%
98.0
%
—
%
31,215
30,595
2.0
%
Jacksonville
1,838
1,829
1,788
2.3
%
98.6
%
98.6
%
—
%
10,437
10,081
3.5
%
Florida Subtotal
22,938
2,007
1,957
2.6
%
98.3
%
98.1
%
0.2
%
140,897
137,247
2.7
%
Southeast United States:
Atlanta
11,547
1,666
1,622
2.7
%
97.9
%
98.2
%
(0.3)
%
58,126
56,328
3.2
%
Carolinas
4,474
1,724
1,681
2.6
%
97.8
%
98.1
%
(0.3)
%
23,484
22,852
2.8
%
Southeast US Subtotal
16,021
1,682
1,639
2.6
%
97.8
%
98.2
%
(0.4)
%
81,610
79,180
3.1
%
Texas:
Houston
1,861
1,645
1,623
1.4
%
97.4
%
97.8
%
(0.4)
%
9,277
9,238
0.4
%
Dallas
1,956
1,931
1,887
2.3
%
97.8
%
98.0
%
(0.2)
%
11,147
11,203
(0.5)
%
Texas Subtotal
3,817
1,792
1,759
1.9
%
97.6
%
97.9
%
(0.3)
%
20,424
20,441
(0.1)
%
Midwest United States:
Chicago
2,550
2,069
2,041
1.4
%
98.2
%
98.6
%
(0.4)
%
15,441
15,415
0.2
%
Minneapolis
1,118
2,037
2,001
1.8
%
96.3
%
97.9
%
(1.6)
%
6,655
6,554
1.5
%
Midwest US Subtotal
3,668
2,060
2,029
1.5
%
97.6
%
98.4
%
(0.8)
%
22,096
21,969
0.6
%
Same Store Total / Average
72,423
$
1,989
$
1,941
2.5
%
98.1
%
98.3
%
(0.2)
%
$
433,259
$
420,677
3.0
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 22
Supplemental Schedule 5(a) (Continued)
Same Store Core Revenues Growth Summary — YTD
($ in thousands, except avg. monthly rent) (unaudited)
Avg. Monthly Rent
Average Occupancy
Core Revenues
YoY, YTD 2021
# Homes
YTD 2021
YTD 2020
Change
YTD 2021
YTD 2020
Change
YTD 2021
YTD 2020
Change
Western United States:
Southern California
7,577
$
2,624
$
2,511
4.5
%
98.8
%
97.8
%
1.0
%
$
169,433
$
165,087
2.6
%
Northern California
3,826
2,277
2,177
4.6
%
98.9
%
98.2
%
0.7
%
76,521
73,873
3.6
%
Seattle
3,264
2,341
2,287
2.4
%
98.4
%
97.5
%
0.9
%
66,636
66,405
0.3
%
Phoenix
7,120
1,555
1,445
7.6
%
98.5
%
98.0
%
0.5
%
101,858
94,032
8.3
%
Las Vegas
2,416
1,794
1,681
6.7
%
98.4
%
97.9
%
0.5
%
39,052
36,186
7.9
%
Denver
1,776
2,151
2,060
4.4
%
97.4
%
97.5
%
(0.1)
%
34,733
32,953
5.4
%
Western US Subtotal
25,979
2,135
2,033
5.0
%
98.6
%
97.9
%
0.7
%
488,233
468,536
4.2
%
Florida:
South Florida
7,809
2,318
2,237
3.6
%
98.0
%
96.6
%
1.4
%
163,551
153,160
6.8
%
Tampa
7,687
1,784
1,712
4.2
%
98.2
%
97.0
%
1.2
%
125,789
117,720
6.9
%
Orlando
5,604
1,776
1,706
4.1
%
98.0
%
97.0
%
1.0
%
91,474
85,816
6.6
%
Jacksonville
1,838
1,793
1,720
4.2
%
98.7
%
96.8
%
1.9
%
30,450
28,374
7.3
%
Florida Subtotal
22,938
1,964
1,889
4.0
%
98.1
%
96.8
%
1.3
%
411,264
385,070
6.8
%
Southeast United States:
Atlanta
11,547
1,628
1,551
5.0
%
98.2
%
97.1
%
1.1
%
169,296
158,599
6.7
%
Carolinas
4,474
1,687
1,619
4.2
%
98.1
%
97.6
%
0.5
%
68,617
65,034
5.5
%
Southeast US Subtotal
16,021
1,645
1,570
4.8
%
98.1
%
97.3
%
0.8
%
237,913
223,633
6.4
%
Texas:
Houston
1,861
1,625
1,581
2.8
%
97.7
%
96.6
%
1.1
%
27,424
26,250
4.5
%
Dallas
1,956
1,895
1,832
3.4
%
97.9
%
96.6
%
1.3
%
33,178
31,960
3.8
%
Texas Subtotal
3,817
1,763
1,710
3.1
%
97.8
%
96.6
%
1.2
%
60,602
58,210
4.1
%
Midwest United States:
Chicago
2,550
2,043
2,005
1.9
%
98.5
%
97.6
%
0.9
%
45,958
44,702
2.8
%
Minneapolis
1,118
2,003
1,932
3.7
%
97.4
%
97.3
%
0.1
%
19,751
19,242
2.6
%
Midwest US Subtotal
3,668
2,031
1,983
2.4
%
98.2
%
97.5
%
0.7
%
65,709
63,944
2.8
%
Same Store Total / Average
72,423
$
1,948
$
1,866
4.4
%
98.3
%
97.3
%
1.0
%
$
1,263,721
$
1,199,393
5.4
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 23
Supplemental Schedule 5(b)
Same Store NOI Growth and Margin Summary — YoY Quarter
($ in thousands) (unaudited)
Core Revenues
Core Operating Expenses
Net Operating Income
Core NOI Margin
YoY, Q3 2021
Q3 2021
Q3 2020
Change
Q3 2021
Q3 2020
Change
Q3 2021
Q3 2020
Change
Q3 2021
Q3 2020
Western United States:
Southern California
$
58,822
$
54,659
7.6
%
$
17,390
$
18,508
(6.0)
%
$
41,432
$
36,151
14.6
%
70.4
%
66.1
%
Northern California
26,591
24,595
8.1
%
7,180
7,258
(1.1)
%
19,411
17,337
12.0
%
73.0
%
70.5
%
Seattle
22,483
22,082
1.8
%
6,296
6,159
2.2
%
16,187
15,923
1.7
%
72.0
%
72.1
%
Phoenix
34,937
31,704
10.2
%
8,313
7,818
6.3
%
26,624
23,886
11.5
%
76.2
%
75.3
%
Las Vegas
13,677
12,089
13.1
%
3,393
3,111
9.1
%
10,284
8,978
14.5
%
75.2
%
74.3
%
Denver
11,722
11,098
5.6
%
2,624
2,558
2.6
%
9,098
8,540
6.5
%
77.6
%
77.0
%
Western US Subtotal
168,232
156,227
7.7
%
45,196
45,412
(0.5)
%
123,036
110,815
11.0
%
73.1
%
70.9
%
Florida:
South Florida
55,994
51,086
9.6
%
23,376
23,044
1.4
%
32,618
28,042
16.3
%
58.3
%
54.9
%
Tampa
43,251
39,466
9.6
%
16,776
16,167
3.8
%
26,475
23,299
13.6
%
61.2
%
59.0
%
Orlando
31,215
28,839
8.2
%
11,106
11,171
(0.6)
%
20,109
17,668
13.8
%
64.4
%
61.3
%
Jacksonville
10,437
9,556
9.2
%
3,674
3,682
(0.2)
%
6,763
5,874
15.1
%
64.8
%
61.5
%
Florida Subtotal
140,897
128,947
9.3
%
54,932
54,064
1.6
%
85,965
74,883
14.8
%
61.0
%
58.1
%
Southeast United States:
Atlanta
58,126
53,427
8.8
%
18,203
17,858
1.9
%
39,923
35,569
12.2
%
68.7
%
66.6
%
Carolinas
23,484
21,861
7.4
%
6,525
6,600
(1.1)
%
16,959
15,261
11.1
%
72.2
%
69.8
%
Southeast US Subtotal
81,610
75,288
8.4
%
24,728
24,458
1.1
%
56,882
50,830
11.9
%
69.7
%
67.5
%
Texas:
Houston
9,277
8,841
4.9
%
4,435
4,313
2.8
%
4,842
4,528
6.9
%
52.2
%
51.2
%
Dallas
11,147
10,776
3.4
%
4,696
4,690
0.1
%
6,451
6,086
6.0
%
57.9
%
56.5
%
Texas Subtotal
20,424
19,617
4.1
%
9,131
9,003
1.4
%
11,293
10,614
6.4
%
55.3
%
54.1
%
Midwest United States:
Chicago
15,441
14,871
3.8
%
6,388
6,693
(4.6)
%
9,053
8,178
10.7
%
58.6
%
55.0
%
Minneapolis
6,655
6,503
2.3
%
2,382
2,312
3.0
%
4,273
4,191
2.0
%
64.2
%
64.4
%
Midwest US Subtotal
22,096
21,374
3.4
%
8,770
9,005
(2.6)
%
13,326
12,369
7.7
%
60.3
%
57.9
%
Same Store Total / Average
$
433,259
$
401,453
7.9
%
$
142,757
$
141,942
0.6
%
$
290,502
$
259,511
11.9
%
67.1
%
64.6
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 24
Supplemental Schedule 5(b) (Continued)
Same Store NOI Growth and Margin Summary — Sequential Quarter
($ in thousands) (unaudited)
Core Revenues
Core Operating Expenses
Net Operating Income
Core NOI Margin
Seq, Q3 2021
Q3 2021
Q2 2021
Change
Q3 2021
Q2 2021
Change
Q3 2021
Q2 2021
Change
Q3 2021
Q2 2021
Western United States:
Southern California
$
58,822
$
55,713
5.6
%
$
17,390
$
16,717
4.0
%
$
41,432
$
38,996
6.2
%
70.4
%
70.0
%
Northern California
26,591
25,206
5.5
%
7,180
7,070
1.6
%
19,411
18,136
7.0
%
73.0
%
72.0
%
Seattle
22,483
22,353
0.6
%
6,296
5,954
5.7
%
16,187
16,399
(1.3)
%
72.0
%
73.4
%
Phoenix
34,937
33,995
2.8
%
8,313
7,312
13.7
%
26,624
26,683
(0.2)
%
76.2
%
78.5
%
Las Vegas
13,677
12,889
6.1
%
3,393
2,908
16.7
%
10,284
9,981
3.0
%
75.2
%
77.4
%
Denver
11,722
11,684
0.3
%
2,624
2,363
11.0
%
9,098
9,321
(2.4)
%
77.6
%
79.8
%
Western US Subtotal
168,232
161,840
3.9
%
45,196
42,324
6.8
%
123,036
119,516
2.9
%
73.1
%
73.8
%
Florida:
South Florida
55,994
54,668
2.4
%
23,376
21,906
6.7
%
32,618
32,762
(0.4)
%
58.3
%
59.9
%
Tampa
43,251
41,903
3.2
%
16,776
15,874
5.7
%
26,475
26,029
1.7
%
61.2
%
62.1
%
Orlando
31,215
30,595
2.0
%
11,106
10,494
5.8
%
20,109
20,101
—
%
64.4
%
65.7
%
Jacksonville
10,437
10,081
3.5
%
3,674
3,408
7.8
%
6,763
6,673
1.3
%
64.8
%
66.2
%
Florida Subtotal
140,897
137,247
2.7
%
54,932
51,682
6.3
%
85,965
85,565
0.5
%
61.0
%
62.3
%
Southeast United States:
Atlanta
58,126
56,328
3.2
%
18,203
17,562
3.6
%
39,923
38,766
3.0
%
68.7
%
68.8
%
Carolinas
23,484
22,852
2.8
%
6,525
6,243
4.5
%
16,959
16,609
2.1
%
72.2
%
72.7
%
Southeast US Subtotal
81,610
79,180
3.1
%
24,728
23,805
3.9
%
56,882
55,375
2.7
%
69.7
%
69.9
%
Texas:
Houston
9,277
9,238
0.4
%
4,435
4,267
3.9
%
4,842
4,971
(2.6)
%
52.2
%
53.8
%
Dallas
11,147
11,203
(0.5)
%
4,696
4,533
3.6
%
6,451
6,670
(3.3)
%
57.9
%
59.5
%
Texas Subtotal
20,424
20,441
(0.1)
%
9,131
8,800
3.8
%
11,293
11,641
(3.0)
%
55.3
%
56.9
%
Midwest United States:
Chicago
15,441
15,415
0.2
%
6,388
6,925
(7.8)
%
9,053
8,490
6.6
%
58.6
%
55.1
%
Minneapolis
6,655
6,554
1.5
%
2,382
2,097
13.6
%
4,273
4,457
(4.1)
%
64.2
%
68.0
%
Midwest US Subtotal
22,096
21,969
0.6
%
8,770
9,022
(2.8)
%
13,326
12,947
2.9
%
60.3
%
58.9
%
Same Store Total / Average
$
433,259
$
420,677
3.0
%
$
142,757
$
135,633
5.3
%
$
290,502
$
285,044
1.9
%
67.1
%
67.8
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 25
Supplemental Schedule 5(b) (Continued)
Same Store NOI Growth and Margin Summary — YTD
($ in thousands) (unaudited)
Core Revenues
Core Operating Expenses
Net Operating Income
Core NOI Margin
YoY, YTD 2021
YTD 2021
YTD 2020
Change
YTD 2021
YTD 2020
Change
YTD 2021
YTD 2020
Change
YTD 2021
YTD 2020
Western United States:
Southern California
$
169,433
$
165,087
2.6
%
$
50,902
$
53,935
(5.6)
%
$
118,531
$
111,152
6.6
%
70.0
%
67.3
%
Northern California
76,521
73,873
3.6
%
21,125
21,495
(1.7)
%
55,396
52,378
5.8
%
72.4
%
70.9
%
Seattle
66,636
66,405
0.3
%
18,333
18,234
0.5
%
48,303
48,171
0.3
%
72.5
%
72.5
%
Phoenix
101,858
94,032
8.3
%
22,862
22,723
0.6
%
78,996
71,309
10.8
%
77.6
%
75.8
%
Las Vegas
39,052
36,186
7.9
%
9,062
8,660
4.6
%
29,990
27,526
9.0
%
76.8
%
76.1
%
Denver
34,733
32,953
5.4
%
7,236
7,136
1.4
%
27,497
25,817
6.5
%
79.2
%
78.3
%
Western US Subtotal
488,233
468,536
4.2
%
129,520
132,183
(2.0)
%
358,713
336,353
6.6
%
73.5
%
71.8
%
Florida:
South Florida
163,551
153,160
6.8
%
66,897
66,512
0.6
%
96,654
86,648
11.5
%
59.1
%
56.6
%
Tampa
125,789
117,720
6.9
%
47,929
46,387
3.3
%
77,860
71,333
9.2
%
61.9
%
60.6
%
Orlando
91,474
85,816
6.6
%
31,567
31,827
(0.8)
%
59,907
53,989
11.0
%
65.5
%
62.9
%
Jacksonville
30,450
28,374
7.3
%
10,422
10,415
0.1
%
20,028
17,959
11.5
%
65.8
%
63.3
%
Florida Subtotal
411,264
385,070
6.8
%
156,815
155,141
1.1
%
254,449
229,929
10.7
%
61.9
%
59.7
%
Southeast United States:
Atlanta
169,296
158,599
6.7
%
52,297
51,785
1.0
%
116,999
106,814
9.5
%
69.1
%
67.3
%
Carolinas
68,617
65,034
5.5
%
18,753
18,789
(0.2)
%
49,864
46,245
7.8
%
72.7
%
71.1
%
Southeast US Subtotal
237,913
223,633
6.4
%
71,050
70,574
0.7
%
166,863
153,059
9.0
%
70.1
%
68.4
%
Texas:
Houston
27,424
26,250
4.5
%
12,726
12,437
2.3
%
14,698
13,813
6.4
%
53.6
%
52.6
%
Dallas
33,178
31,960
3.8
%
13,088
13,409
(2.4)
%
20,090
18,551
8.3
%
60.6
%
58.0
%
Texas Subtotal
60,602
58,210
4.1
%
25,814
25,846
(0.1)
%
34,788
32,364
7.5
%
57.4
%
55.6
%
Midwest United States:
Chicago
45,958
44,702
2.8
%
19,916
20,420
(2.5)
%
26,042
24,282
7.2
%
56.7
%
54.3
%
Minneapolis
19,751
19,242
2.6
%
6,421
6,410
0.2
%
13,330
12,832
3.9
%
67.5
%
66.7
%
Midwest US Subtotal
65,709
63,944
2.8
%
26,337
26,830
(1.8)
%
39,372
37,114
6.1
%
59.9
%
58.0
%
Same Store Total / Average
$
1,263,721
$
1,199,393
5.4
%
$
409,536
$
410,574
(0.3)
%
$
854,185
$
788,819
8.3
%
67.6
%
65.8
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 26
Supplemental Schedule 5(c)
Same Store Lease-Over-Lease Rent Growth
(unaudited)
Rental Rate Growth
Q3 2021
YTD 2021
Renewal
New
Blended
Renewal
New
Blended
Leases
Leases
Average
Leases
Leases
Average
Western United States:
Southern California
6.3
%
12.6
%
7.6
%
5.6
%
11.0
%
6.8
%
Northern California
6.3
%
18.0
%
8.8
%
5.6
%
14.5
%
7.6
%
Seattle
7.0
%
20.9
%
10.4
%
2.8
%
16.1
%
6.0
%
Phoenix
11.8
%
29.2
%
15.9
%
9.4
%
22.5
%
12.7
%
Las Vegas
11.7
%
29.9
%
15.9
%
9.3
%
21.3
%
12.6
%
Denver
7.6
%
11.8
%
9.0
%
6.1
%
9.7
%
7.2
%
Western US Subtotal
8.1
%
19.7
%
10.8
%
6.3
%
15.6
%
8.6
%
Florida:
South Florida
9.1
%
17.9
%
11.3
%
7.0
%
11.4
%
8.1
%
Tampa
7.7
%
21.4
%
11.7
%
6.0
%
14.2
%
8.7
%
Orlando
5.7
%
17.1
%
9.4
%
4.8
%
12.1
%
7.3
%
Jacksonville
5.0
%
19.1
%
9.8
%
4.5
%
13.9
%
7.6
%
Florida Subtotal
7.7
%
18.8
%
10.9
%
6.1
%
12.6
%
8.1
%
Southeast United States:
Atlanta
7.8
%
20.6
%
11.1
%
6.4
%
16.2
%
9.0
%
Carolinas
8.0
%
15.3
%
10.2
%
6.3
%
11.7
%
7.9
%
Southeast US Subtotal
7.9
%
18.8
%
10.8
%
6.4
%
14.8
%
8.7
%
Texas:
Houston
5.3
%
10.8
%
6.9
%
4.3
%
7.6
%
5.2
%
Dallas
6.6
%
15.8
%
9.4
%
5.5
%
10.7
%
7.1
%
Texas Subtotal
6.0
%
13.6
%
8.2
%
4.9
%
9.4
%
6.2
%
Midwest United States:
Chicago
6.3
%
10.9
%
7.5
%
4.3
%
7.8
%
5.1
%
Minneapolis
6.9
%
10.3
%
8.1
%
5.8
%
8.3
%
6.5
%
Midwest US Subtotal
6.5
%
10.7
%
7.7
%
4.7
%
8.0
%
5.5
%
Same Store Total / Average
7.8
%
18.4
%
10.6
%
6.1
%
13.6
%
8.1
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 27
Supplemental Schedule 6
Same Store Cost to Maintain, net (1)
($ in thousands, except per home amounts) (unaudited)
Total ($ 000)
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
R&M OpEx, net
$
23,322
$
19,490
$
16,410
$
18,838
$
24,424
Turn OpEx, net
8,401
8,129
6,732
7,320
9,209
Total recurring operating expenses, net
$
31,723
$
27,619
$
23,142
$
26,158
$
33,633
R&M CapEx
$
25,222
$
19,133
$
16,587
$
20,236
$
24,080
Turn CapEx
7,998
6,975
5,887
5,794
6,953
Total recurring capital expenditures
$
33,220
$
26,108
$
22,474
$
26,030
$
31,033
R&M OpEx, net + R&M CapEx
$
48,544
$
38,623
$
32,997
$
39,074
$
48,504
Turn OpEx, net + Turn CapEx
16,399
15,104
12,619
13,114
16,162
Total Cost to Maintain, net
$
64,943
$
53,727
$
45,616
$
52,188
$
64,666
Per Home ($)
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Total Cost to Maintain, net
$
897
$
742
$
630
$
721
$
893
(1)Recurring R&M OpEx and Turn OpEx are presented net of applicable resident recoveries.
Total Wholly Owned Portfolio Capital Expenditure Detail
($ in thousands) (unaudited)
Total ($ 000)
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Recurring CapEx
$
36,215
$
28,693
$
24,454
$
28,485
$
33,861
Value Enhancing CapEx
12,302
9,039
8,945
10,459
10,286
Initial Renovation CapEx
20,254
16,635
19,320
28,539
13,385
Disposition CapEx
682
1,557
1,748
1,746
1,748
Total Capital Expenditures
$
69,453
$
55,924
$
54,467
$
69,229
$
59,280
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 28
Supplemental Schedule 7
Adjusted Property Management and G&A Reconciliation
($ in thousands) (unaudited)
Adjusted Property Management Expense
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Property management expense (GAAP)
$
17,886
$
14,824
$
51,424
$
43,725
Adjustments:
Share-based compensation expense
(1,277)
(1,253)
(4,154)
(2,533)
Adjusted property management expense
$
16,609
$
13,571
$
47,270
$
41,192
Adjusted G&A Expense
Q3 2021
Q3 2020
YTD 2021
YTD 2020
G&A expense (GAAP)
$
19,369
$
17,972
$
56,147
$
46,626
Adjustments:
Share-based compensation expense
(4,775)
(4,833)
(16,918)
(9,760)
Severance expense
(226)
(133)
(500)
(388)
Adjusted G&A expense
$
14,368
$
13,006
$
38,729
$
36,478
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 29
Supplemental Schedule 8
Acquisitions and Dispositions — Q3 2021
(unaudited)
6/30/2021
Q3 2021 Acquisitions (1)
Q3 2021 Dispositions (2)
9/30/2021
Homes
Homes
Avg. Estimated
Homes
Average
Homes
Owned
Acq.
Cost Basis
Sold
Sales Price
Owned
Wholly Owned Portfolio
Western United States:
Southern California
7,909
—
$
—
15
$
540,571
7,894
Northern California
4,241
95
580,695
14
478,414
4,322
Seattle
3,753
156
537,164
1
490,000
3,908
Phoenix
8,338
303
443,538
15
281,500
8,626
Las Vegas
3,017
6
396,735
2
307,500
3,021
Denver
2,466
139
489,215
7
376,429
2,598
Western US Subtotal
29,724
699
491,755
54
421,646
30,369
Florida:
South Florida
8,243
37
290,614
41
350,556
8,239
Tampa
8,236
109
378,324
9
305,590
8,336
Orlando
6,261
50
373,835
1
279,250
6,310
Jacksonville
1,874
6
389,886
—
—
1,880
Florida Subtotal
24,614
202
361,491
51
341,223
24,765
Southeast United States:
Atlanta
12,573
59
306,388
13
241,985
12,619
Carolinas
5,037
97
343,819
2
252,450
5,132
Southeast US Subtotal
17,610
156
329,662
15
243,380
17,751
Texas:
Houston
2,142
2
305,726
5
161,000
2,139
Dallas
2,810
23
326,210
6
273,500
2,827
Texas Subtotal
4,952
25
324,571
11
222,364
4,966
Midwest United States:
Chicago
2,585
—
—
12
281,608
2,573
Minneapolis
1,123
—
—
1
290,000
1,122
Midwest US Subtotal
3,708
—
—
13
282,254
3,695
Announced Market-in-Exit:
Nashville (3)
4
—
—
1
690,000
3
Total / Average
80,612
1,082
$
440,203
145
$
349,154
81,549
Joint Venture Portfolio
Rockpoint Joint Venture (4)
820
602
$
407,441
—
$
—
1,422
FNMA Joint Venture (5)
548
—
—
16
399,979
532
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 30
Supplemental Schedule 8 (Continued)
(1)Estimated stabilized cap rates on wholly owned acquisitions during the quarter averaged 5.0%. Stabilized cap rate represents forecast nominal NOI for the 12 months following stabilization, divided by estimated cost basis.
(2)Cap rates on wholly owned dispositions during the quarter averaged 2.1%. Disposition cap rate represents actual NOI recognized in the 12 months prior to the month of disposition, divided by sales price.
(3)In December 2019, Invitation Homes announced a plan to fully exit the Nashville market, and sold 708 homes in Nashville in a bulk transaction. The Company is pursuing the sale of the remaining three homes in the market as of September 30, 2021.
(4)Represents portfolio in the Company's unconsolidated joint venture with Rockpoint Group, of which Invitation Homes owns 20%.
(5)Represents portfolio in the Company's unconsolidated joint venture with Federal National Mortgage Association, of which Invitation Homes owns 10%.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 31
Glossary and Reconciliations
Average Estimated Cost Basis
Average estimated cost basis on acquisition represents the sum of purchase price, any closing adjustments, and estimated initial renovation expenditure for an acquired home or population of homes.
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 NOI Margin
Core NOI margin for an identified population of homes is calculated by dividing NOI by Core Revenues attributable to such population.
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.
Cost to Maintain, net
Cost to maintain, net a home represents the sum of the expensed and capitalized portions of recurring repairs & maintenance and turn spend, net of resident reimbursements, as indicated in tables presented, not including the internal labor associated with such work.
Disposition CapEx
Disposition CapEx represents expenditures related to the preparation of a home for disposition after the prior tenant has moved out of the home.
EBITDA, EBITDAre, and Adjusted EBITDAre
EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. The Company defines EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. National Association of Real Estate Investment Trusts ("Nareit") recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. The Company defines EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax and impairment on depreciated real estate investments. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; severance; casualty (gains) losses, net; (gains) losses on investments in equity securities, net; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of the Company's financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.
The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of the Company's liquidity and should not be considered alternatives to
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 32
net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that the Company's basis for computing these non-GAAP measures is comparable with that of other companies. See below for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated joint ventures. In calculating per share amounts, Core FFO and AFFO reflect convertible debt securities in the form in which they were outstanding during the period.
The Company believes that FFO is a meaningful supplemental measure of the operating performance of its business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss.
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are not used as measures of the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's Core FFO and Adjusted FFO may not be comparable to the Core FFO and Adjusted FFO of other companies due to the fact that not all companies use the same definition of Core FFO and Adjusted FFO. Accordingly, there can be no assurance that the Company's basis for computing this non-GAAP measures is comparable with that of other companies. See "Reconciliation of FFO, Core FFO, and Adjusted FFO" for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.
Initial Renovation CapEx
Initial renovation CapEx represents expenditures related to the first post-acquisition renovation of a home to bring the home to Invitation Homes standards and specifications.
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; joint venture management fees; 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.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 33
PSF
PSF means per square foot.
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.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 34
Unsecured Facility Covenants
Unsecured facility covenants refer to financial and operating requirements that the Company must meet with respect to its $1,000 million revolving credit facility (the "Revolving Facility") and its $2,500 million term loan facility (the "Term Loan Facility") (together, the "Credit Facility"), as set forth in the Company's Amended and Restated Revolving Credit and Term Loan Agreement dated December 8, 2020 (the "Unsecured Credit Agreement"). The metrics provided under the "Unsecured Facility Covenant Compliance" heading on Supplemental Schedule 2(b) show the Company's compliance with certain covenants that the Company believes are its most restrictive financial covenants, including: total leverage ratio, secured leverage ratio, unencumbered leverage ratio, fixed charge coverage ratio, and unsecured interest coverage ratio.
Total leverage ratio represents (i) total outstanding indebtedness (including the Company's pro rata share of debt in unconsolidated entities), as defined by the Unsecured Credit Agreement, divided by (ii) total asset value (including the Company's pro rata share of assets in unconsolidated entities), as defined in the Unsecured Credit Agreement. For the purpose of calculating total asset value under the terms of the Unsecured Credit Agreement, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
Secured leverage ratio represents (i) total outstanding secured indebtedness (including the Company's pro rata share of secured debt in unconsolidated entities), as defined by the Unsecured Credit Agreement, divided by (ii) total asset value (including the Company's pro rata share of assets in unconsolidated entities), as defined in the Unsecured Credit Agreement. For the purpose of calculating total asset value under the terms of the Unsecured Credit Agreement, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
Unencumbered leverage ratio represents (i) total outstanding unsecured indebtedness (including the Company's pro rata share of unsecured debt in unconsolidated entities), as defined by the Unsecured Credit Agreement, divided by (ii) unencumbered asset value, as defined in the Unsecured Credit Agreement. For the purpose of calculating unencumbered asset value under the terms of the Unsecured Credit Agreement, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
Fixed charge coverage ratio represents (i) the trailing four quarters' EBITDA (including the Company's pro rata share of EBITDA from unconsolidated entities), as defined by the Unsecured Credit Agreement, divided by (ii) the trailing four quarters' fixed charges (including the Company's pro rata share of fixed charges in unconsolidated entities), as defined in the Unsecured Credit Agreement. Fixed charges include cash interest expense, regularly scheduled principal payments, and preferred stock or preferred OP unit dividends.
Unsecured interest coverage ratio represents (i) the trailing four quarters' unencumbered NOI, as defined by the Unsecured Credit Agreement, divided by (ii) the trailing four quarters' total unsecured interest expense (including the Company's pro rata share of interest expense from unsecured debt in unconsolidated entities), as defined in the Unsecured Credit Agreement.
The metrics set forth under the "Unsecured Facility Covenant Compliance" heading on Supplemental Schedule 2(b), and described above, are provided only to show the Company's compliance with these covenants. These metrics should not be used for any other purpose, including without limitation to evaluate the Company's financial condition or results of operations, nor do they indicate the Company's covenant compliance as of any other date or for any other period. These metrics, or components of these metrics described above, may be defined differently in the Unsecured Credit Agreement than similarly named metrics are defined by the Company in its Earnings Release and Supplemental Information for the purposes of evaluating its financial conditions or results of operations. For a more complete and detailed description of the covenants contained in the Company's Unsecured Credit Agreement, see Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-38004) filed on December 9, 2020.
The breach of any of the covenants set forth in the Unsecured Credit Agreement could result in a default of the Company's indebtedness related to its Revolving Facility and Term Loan Facility, which could cause those obligations to become due and payable. The Company's ability to comply with these covenants may be affected by changes in the Company's operating and financial performance, changes in general business and economic conditions, adverse regulatory developments, or other events adversely impacting it. If any of the Company's indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 35
covenants, see Part I. Item 1A. “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, as such factors may be updated from time to time in its periodic filings with the SEC.
Unsecured Public Bond Covenants
Unsecured public bond covenants refer to financial and operating requirements that the Company must meet with respect to its senior notes due 2031, as set forth in the First Supplemental Indenture to the Base Indenture for the notes (together, the "Indenture"). The metrics provided under the "Unsecured Public Bond Covenant Compliance" heading on Supplemental Schedule 2(b) show the Company's compliance with certain covenants that the Company believes are its most restrictive financial covenants, including: aggregate debt ratio, secured debt ratio, unencumbered assets ratio, and debt service ratio.
Aggregate debt ratio represents (i) total debt, as defined by the Indenture, divided by (ii) total assets, including the undepreciated book value of real estate assets and some tangible non-real estate assets, as defined by the Indenture.
Secured debt ratio represents (i) secured debt, as defined by the Indenture, divided by (ii) total assets, including the undepreciated book value of real estate assets and some tangible non-real estate assets, as defined by the Indenture.
Unencumbered assets ratio represents (i) total unencumbered assets, not including investments in unconsolidated joint ventures, as defined in the Indenture, divided by (ii) unsecured debt, as defined by the Indenture.
Debt service ratio represents (i) consolidated income available for debt service, as defined by the Indenture, divided by (ii) annual service charge for the trailing four quarters, calculated on a pro forma basis as if transactions during the period had occured at the beginning of the period, as defined in the Indenture. Annual service charge includes interest expense and amortization of original issue discounts on debt, and excludes funded interest reserves, amortization of DFCs, and select nonrecurring charges.
The metrics set forth under the "Unsecured Public Bond Covenant Compliance" heading on Supplemental Schedule 2(b), and described above, are provided only to show the Company's compliance with these covenants. These metrics should not be used for any other purpose, including without limitation to evaluate the Company's financial condition or results of operations, nor do they indicate the Company's covenant compliance as of any other date or for any other period. These metrics, or components of these metrics described above, may be defined differently in the Indenture than similarly named metrics are defined by the Company in its Earnings Release and Supplemental Information for the purposes of evaluating its financial conditions or results of operations. For a more complete and detailed description of the covenants contained in the Company's Unsecured Public Bond Agreement, see Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-38004) filed on August 6, 2021.
The breach of any of the covenants set forth in the Indenture could result in a default of the Company's indebtedness related to its senior notes due 2031, which could cause those obligations to become due and payable. The Company's ability to comply with these covenants may be affected by changes in the Company's operating and financial performance, changes in general business and economic conditions, adverse regulatory developments, or other events adversely impacting it. If any of the Company's indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with covenants, see Part I. Item 1A. “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, as such factors may be updated from time to time in its periodic filings with the SEC.
Value Enhancing CapEx
Value enhancing CapEx represents re-investment in stabilized homes, above and beyond general replacements to preserve and maintain the value and functionality of a home, for the purpose of enhancing expected risk-adjusted returns.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 36
Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Total revenues (Total Portfolio)
$
509,532
$
491,633
$
475,225
$
464,100
$
459,184
Joint venture management fees
(1,354)
(1,015)
(771)
—
—
Total portfolio resident recoveries
(27,972)
(26,076)
(24,740)
(23,885)
(23,675)
Total Core Revenues (Total Portfolio)
480,206
464,542
449,714
440,215
435,509
Non-Same Store Core Revenues
(46,947)
(43,865)
(39,929)
(36,334)
(34,056)
Same Store Core Revenues
$
433,259
$
420,677
$
409,785
$
403,881
$
401,453
Reconciliation of Total Revenues to Same Store Core Revenues, YTD
(in thousands) (unaudited)
YTD 2021
YTD 2020
Total revenues (Total Portfolio)
$
1,476,390
$
1,358,728
Joint venture management fees
(3,140)
—
Total Portfolio resident recoveries
(78,788)
(63,873)
Total Core Revenues (Total Portfolio)
1,394,462
1,294,855
Non-Same Store Core Revenues
(130,741)
(95,462)
Same Store Core Revenues
$
1,263,721
$
1,199,393
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 37
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Property operating and maintenance expenses (Total Portfolio)
$
184,484
$
175,422
$
168,373
$
168,628
$
177,997
Total Portfolio resident recoveries
(27,972)
(26,076)
(24,740)
(23,885)
(23,675)
Core Operating Expenses (Total Portfolio)
156,512
149,346
143,633
144,743
154,322
Non-Same Store Core Operating Expenses
(13,755)
(13,713)
(12,487)
(12,557)
(12,380)
Same Store Core Operating Expenses
$
142,757
$
135,633
$
131,146
$
132,186
$
141,942
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, YTD
(in thousands) (unaudited)
YTD 2021
YTD 2020
Property operating and maintenance expenses (Total Portfolio)
$
528,279
$
511,915
Total Portfolio resident recoveries
(78,788)
(63,873)
Core Operating Expenses (Total Portfolio)
449,491
448,042
Non-Same Store Core Operating Expenses
(39,955)
(37,468)
Same Store Core Operating Expenses
$
409,536
$
410,574
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 38
Reconciliation of Net Income to Same Store NOI, Quarterly
(in thousands) (unaudited)
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Net income available to common stockholders
$
69,108
$
60,242
$
57,272
$
70,586
$
32,540
Net income available to participating securities
69
96
95
113
114
Non-controlling interests
318
350
355
431
211
Interest expense
79,370
80,764
83,406
95,382
87,713
Depreciation and amortization
150,694
145,280
144,501
142,090
138,147
Property management expense
17,886
17,696
15,842
14,888
14,824
General and administrative
19,369
19,828
16,950
16,679
17,972
Impairment and other
4,294
980
356
(3,974)
1,723
Gain on sale of property, net of tax
(13,047)
(17,919)
(14,484)
(13,121)
(15,106)
(Gains) losses on investments in equity securities, net
(4,319)
7,002
3,140
(29,689)
—
Other, net
1,508
1,903
(230)
2,087
3,049
Joint venture management fees
(1,354)
(1,015)
(771)
—
—
Income from investments in unconsolidated joint ventures
(202)
(11)
(351)
—
—
NOI (Total Portfolio)
323,694
315,196
306,081
295,472
281,187
Non-Same Store NOI
(33,192)
(30,152)
(27,442)
(23,777)
(21,676)
Same Store NOI
$
290,502
$
285,044
$
278,639
$
271,695
$
259,511
Reconciliation of Net Income to Same Store NOI, YTD
(in thousands) (unaudited)
YTD 2021
YTD 2020
Net income available to common stockholders
$
186,622
$
125,178
Net income available to participating securities
260
335
Non-controlling interests
1,023
806
Interest expense
243,540
258,541
Depreciation and amortization
440,475
410,440
Property management expense
51,424
43,725
General and administrative
56,147
46,626
Impairment and other
5,630
4,670
Gain on sale of property, net of tax
(45,450)
(41,473)
(Gains) losses on investments in equity securities, net
5,823
(34)
Other, net
3,181
(2,001)
Joint venture management fees
(3,140)
—
Income from investments in unconsolidated joint ventures
(564)
—
NOI (Total Portfolio)
944,971
846,813
Non-Same Store NOI
(90,786)
(57,994)
Same Store NOI
$
854,185
$
788,819
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 39
Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre
(in thousands, unaudited)
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Net income available to common stockholders
$
69,108
$
32,540
$
186,622
$
125,178
Net income available to participating securities
69
114
260
335
Non-controlling interests
318
211
1,023
806
Interest expense
79,370
87,713
243,540
258,541
Interest expense in unconsolidated joint ventures
370
—
669
—
Depreciation and amortization
150,694
138,147
440,475
410,440
Depreciation and amortization of real estate assets in unconsolidated joint ventures
389
—
739
—
EBITDA
300,318
258,725
873,328
795,300
Gain on sale of property, net of tax
(13,047)
(15,106)
(45,450)
(41,473)
Impairment on depreciated real estate investments
126
289
650
4,202
Net gain on sale of investments in unconsolidated joint ventures
(360)
—
(800)
—
EBITDAre
287,037
243,908
827,728
758,029
Share-based compensation expense
6,052
6,086
21,072
12,293
Severance
226
133
500
388
Casualty losses, net
4,168
1,434
4,980
468
(Gains) losses on investments in equity securities, net
(4,319)
—
5,823
(34)
Other, net
1,508
3,049
3,181
(2,001)
Adjusted EBITDAre
$
294,672
$
254,610
$
863,284
$
769,143
Trailing Twelve Months (TTM) Ended
September 30, 2021
December 31, 2020
Net income available to common stockholders
$
257,208
$
195,764
Net income available to participating securities
373
448
Non-controlling interests
1,454
1,237
Interest expense
338,922
353,923
Interest expense in unconsolidated joint ventures
669
—
Depreciation and amortization
582,565
552,530
Depreciation and amortization of real estate assets in unconsolidated joint ventures
739
—
EBITDA
1,181,930
1,103,902
Gain on sale of property, net of tax
(58,571)
(54,594)
Impairment on depreciated real estate investments
1,026
4,578
Net gain on sale of investments in unconsolidated joint ventures
(800)
—
EBITDAre
1,123,585
1,053,886
Share-based compensation expense
25,869
17,090
Severance
713
601
Casualty (gains) losses, net
630
(3,882)
(Gains) losses on investments in equity securities, net
(23,866)
(29,723)
Other, net
5,268
86
Adjusted EBITDAre
$
1,132,199
$
1,038,058
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 40
Reconciliation of Net Debt / Trailing Twelve Months (TTM) Adjusted EBITDAre
(in thousands, except for ratio) (unaudited)
As of
As of
September 30, 2021
December 31, 2020
Mortgage loans, net
$
3,857,863
$
4,820,098
Secured term loan, net
401,258
401,095
Unsecured notes, net
931,889
—
Term loan facility, net
2,476,309
2,470,907
Revolving facility
—
—
Convertible senior notes, net
145,818
339,404
Total Debt per Balance Sheet
7,813,137
8,031,504
Retained and repurchased certificates
(199,280)
(247,526)
Cash, ex-security deposits and letters of credit (1)
(653,475)
(250,204)
Deferred financing costs, net
43,819
43,396
Unamortized discounts on note payable
13,002
7,885
Net Debt (A)
$
7,017,203
$
7,585,055
2022 convertible senior notes, net
(145,818)
Unamortized discounts related to 2022 convertible senior notes
(673)
Pro Forma Net Debt (B) (2)
$
6,870,712
For the Trailing Twelve
For the Trailing Twelve
Months (TTM) Ended
Months (TTM) Ended
September 30, 2021
December 31, 2020
Adjusted EBITDAre (C)
$
1,132,199
$
1,038,058
Net Debt / TTM Adjusted EBITDAre (A / C)
6.2
x
7.3
x
Pro Forma Net Debt / TTM Adjusted EBITDAre (B / C) (2)
6.1
x
(1)Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit
(2)In July 2021, the Company gave notice of intent to settle conversions of its 2022 Convertible Notes with common stock. As of September 30, 2021, $199 million of principal was converted into 8,723,421 shares of common stock at the election of the note holders. Pro Forma Net Debt and Pro Forma Net Debt / Trailing Twelve Months Adjusted EBITDAre assume the net debt is reduced for the impact of the conversion of the remaining $146 million (par value) 2022 Convertible Notes
Components of Non-Cash Interest Expense (Wholly Owned)
(in thousands) (unaudited)
Q3 2021
Q3 2020
YTD 2021
YTD 2020
Amortization of discounts on notes payable
$
2,481
$
1,380
$
5,309
$
4,077
Amortization of deferred financing costs
3,172
3,800
9,739
18,153
Change in fair value of interest rate derivatives
1
146
106
198
Amortization of swap fair value at designation
3,211
1,557
10,285
4,212
Total non-cash interest expense
$
8,865
$
6,883
$
25,439
$
26,640
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2021 Earnings Release and Supplemental Information — page 41
