Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 2
Earnings Press Release
Invitation Homes Reports Second Quarter 2023 Results
Dallas, TX, July 26, 2023 — Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), the nation's premier single-family home leasing company, today announced its Q2 2023 financial and operating results, along with an increase to the Company's 2023 full year guidance.
In addition, Invitation Homes also announced today that on July 18, 2023, the Company acquired a premier portfolio of nearly 1,900 homes for approximately $650 million. The Company funded the transaction primarily with cash on hand, with the remainder funded by the Company's previously undrawn revolving credit facility. Additional details of the transaction will be discussed on tomorrow's earnings conference call.
Second Quarter 2023 Highlights
•Year over year, total revenues increased 7.7% to $600 million, property operating and maintenance costs increased 12.1% to $214 million, net income available to common stockholders increased 24.3% to $138 million, and net income per diluted common share increased 23.9% to $0.22.
•Year over year, Core FFO per share increased 5.3% to $0.44, and AFFO per share increased 6.8% to $0.38.
•Same Store NOI increased 3.6% year over year on 5.9% Same Store Core Revenues growth and 11.2% Same Store Core Operating Expenses growth.
•Revenue collections were approximately 99% of the Company's historical average collection rate. Same Store Bad Debt was 1.5% of gross rental revenue, an improvement of approximately 50 basis points from Q1 2023.
•Same Store Average Occupancy was 97.6%, down 20 basis points from Q1 2023 as the Company continued to make progress on its lease compliance backlog.
•Same Store new lease rent growth of 7.3% and Same Store renewal rent growth of 6.9% drove Same Store blended rent growth of 7.0%.
•Acquisitions by the Company and the Company's joint ventures totaled 276 homes for $88 million, primarily from the Company's builder partners, while dispositions totaled 378 homes for $141 million.
Chief Executive Officer Dallas Tanner comments:
"We're pleased to report second quarter results that demonstrate strong progress for the first half of 2023. Robust demand for our homes continued into the peak leasing season, with Same Store Average Occupancy remaining high at 97.6% and Same Store blended rental rate growth at 7.0% year over year. As a result of solid year-to-date execution by our teams and our continued expectations that supply and demand fundamentals will remain favorable, we are raising our 2023 full year guidance, including an increase of 25 basis points at the midpoint for our Same Store NOI growth guidance and an increase of $0.01 at the midpoint for our Core FFO per share and AFFO per share guidance.
"In addition, we're excited by our recent portfolio acquisition that adds nearly 1,900 homes that are among the best located and highest quality within our portfolio today. We believe this acquisition's attractive entry point and high-growth outlook align well with our disciplined investment approach, providing further evidence of the benefits of our multichannel acquisition strategy, industry-leading scale, and best-in-class platform. Looking ahead, we believe these newly acquired homes will help drive strong NOI growth and value creation, and we remain committed as ever to sourcing focused and value-additive external growth opportunities."
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.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 3
Financial Results
Net Income, FFO, Core FFO, and AFFO Per Share — Diluted
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Net income
$
0.22
$
0.18
$
0.42
$
0.33
FFO
0.42
0.39
0.83
0.77
Core FFO
0.44
0.42
0.88
0.82
AFFO
0.38
0.36
0.76
0.71
Net Income
Net income per share for Q2 2023 was $0.22, compared to net income per share of $0.18 for Q2 2022. Total revenues and total property operating and maintenance expenses for Q2 2023 were $600 million and $214 million, respectively, compared to $557 million and $191 million, respectively, in Q2 2022.
Net income per share YTD 2023 was $0.42, compared to net income per share of $0.33 for YTD 2022. Total revenues and total property operating and maintenance expenses for YTD 2023 were $1,190 million and $422 million, respectively, compared to $1,090 million and $373 million, respectively, for YTD 2022.
Core FFO
Year over year, Core FFO per share for Q2 2023 increased 5.3% to $0.44, primarily due to NOI growth. Year over year, Core FFO per share for YTD 2023 increased 7.4% to $0.88, primarily due to NOI growth.
AFFO
Year over year, AFFO per share for Q2 2023 increased 6.8% to $0.38, primarily due to the increase in Core FFO per share described above. Year over year, AFFO per share for YTD 2023 increased 7.9% to $0.76, primarily due to the increase in Core FFO per share described above.
Operating Results
Same Store Operating Results Snapshot
Number of homes in Same Store Portfolio:
76,593
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Core Revenues growth (year over year)
5.9
%
6.9
%
Core Operating Expenses growth (year over year)
11.2
%
12.5
%
NOI growth (year over year)
3.6
%
4.4
%
Average Occupancy
97.6
%
98.0
%
97.7
%
98.1
%
Bad Debt % of gross rental revenue
1.5
%
0.5
%
1.7
%
1.1
%
Turnover Rate
6.6
%
5.9
%
11.7
%
10.6
%
Rental Rate Growth (lease-over-lease):
Renewals
6.9
%
10.2
%
7.4
%
9.9
%
New Leases
7.3
%
16.2
%
6.5
%
15.5
%
Blended
7.0
%
11.6
%
7.1
%
11.3
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 4
Revenue Collections Update
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Pre-COVID Average (2)
Revenues collected % of revenues due: (1)
Revenues collected in same month billed
93
%
93
%
91
%
91
%
96
%
Late collections of prior month billings
5
%
5
%
6
%
6
%
3
%
Total collections
98
%
98
%
97
%
97
%
99
%
(1)Includes both rental revenues and other property income. Rent is considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. Security deposits retained to offset rents due are not included as revenue collected.
(2)Represents the period from October 2019 to March 2020.
Same Store NOI
For the Same Store Portfolio of 76,593 homes, Same Store NOI for Q2 2023 increased 3.6% year over year on Same Store Core Revenues growth of 5.9% and Same Store Core Operating Expenses growth of 11.2%.
YTD 2023 Same Store NOI increased 4.4% year over year on Same Store Core Revenues growth of 6.9% and Same Store Core Operating Expenses growth of 12.5%.
Same Store Core Revenues
Same Store Core Revenues growth for Q2 2023 of 5.9% year over year was primarily driven by a 7.4% increase in Average Monthly Rent and a 7.3% increase in other income, net of resident recoveries, partially offset by a 40 basis points year over year decline in Average Occupancy and a 100 basis points year over year increase in Bad Debt as a percentage of gross rental revenue. Bad Debt was 1.5% of gross rental revenue for Q2 2023, an improvement of approximately 50 basis points from Q1 2023 as a result of continued progress in working through the Company's lease compliance backlog.
YTD 2023 Same Store Core Revenues growth of 6.9% year over year was primarily driven by a 7.9% increase in Average Monthly Rent and a 7.5% increase in other income, net of resident recoveries, partially offset by a 40 basis point year over year decline in Average Occupancy and a 60 basis point year over year increase in Bad Debt as a percentage of gross rental revenue.
Same Store Core Operating Expenses
Same Store Core Operating Expenses for Q2 2023 increased 11.2% year over year. The largest contributors to the year over year increase include an increase in property tax expense due to an expected year over year increase in property taxes in addition to the underaccrual of property tax expense in the first three quarters of 2022, as well as an increase in turnover expenses, net of resident recoveries, and an increase in utilities and property administrative expenses, net of resident recoveries. The increases in the latter two expense categories were expected primarily as a result of continued progress in working through the Company's lease compliance backlog.
YTD 2023 Same Store Core Operating Expenses increased 12.5% year over year, primarily driven by the year over year increases described above.
Investment Management Activity
Acquisitions for Q2 2023 totaled 276 homes for $88 million, primarily sourced from the Company's builder partners. This included 188 wholly owned homes for $61 million in addition to 88 homes for $27 million in the Company's joint ventures. Dispositions for Q2 2023 included 361 wholly owned homes for gross proceeds of $134 million and 17 homes for gross proceeds of $7 million in the Company's joint ventures.
Year to date through June 30, 2023, the Company acquired 470 homes for $155 million, including 369 wholly owned homes for $123 million and 101 homes for $32 million in the Company's joint ventures. The company also sold 675 homes for
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 5
$242 million, including 645 wholly owned homes for $229 million and 30 homes for $13 million in the Company's joint ventures.
Subsequent to quarter end on July 18, 2023, the Company acquired a premier portfolio of nearly 1,900 homes for approximately $650 million (the "Portfolio Acquisition"). Additional details of the transaction will be discussed on tomorrow's earnings conference call.
Balance Sheet and Capital Markets Activity
As of June 30, 2023, the Company had $1,414 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 June 30, 2023 was $7,823 million, consisting of $5,775 million of unsecured debt and $2,048 million of secured debt. Net debt / TTM adjusted EBITDAre was 5.3x at June 30, 2023, down from 5.7x as of December 31, 2022.
Subsequent to quarter end on July 18, 2023, the Company funded the Portfolio Acquisition primarily with cash on hand, with the remainder funded by the Company's previously undrawn revolving credit facility.
Dividend
As previously announced on July 21, 2023, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share of common stock. The dividend will be paid on or before August 25, 2023, to stockholders of record as of the close of business on August 8, 2023.
FY 2023 Guidance Update
The Company does not provide guidance for the most comparable GAAP financial measures of net income (loss), total revenues, and property operating and maintenance expense. Additionally, a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses growth, and Same Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because the Company is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance period.
Full year 2023 guidance revisions are outlined in the table below:
FY 2023 Guidance
Current FY 2023 Guidance
Previous FY 2023 Guidance
Core FFO per share — diluted
$1.75 to $1.81
$1.73 to $1.81
AFFO per share — diluted
$1.45 to $1.51
$1.43 to $1.51
Same Store Core Revenues growth
5.75% to 6.75%
5.25% to 6.25%
Same Store Core Operating Expenses growth
8.5% to 9.5%
7.5% to 9.5%
Same Store NOI growth
4.5% to 5.5%
4.0% to 5.5%
Wholly owned acquisitions
$800 million to $900 million
$250 million to $300 million
JV acquisitions
$100 million to $300 million
$100 million to $300 million
Wholly owned dispositions
$425 million to $475 million
$250 million to $300 million
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 6
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on July 27, 2023, to discuss results for the second quarter of 2023. The domestic dial-in number is 1-888-330-2384, and the international dial-in number is 1-240-789-2701. The conference ID is 7714113. A live audio webcast may be accessed at www.invh.com. A replay of the call will be available through August 24, 2023, and can be accessed by calling 1-800-770-2030 (domestic) or 1-647-362-9199 (international) and using the playback ID 7714113, or by using the link at www.invh.com.
Supplemental Information
The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes' Investor Relations website at www.invh.com.
About Invitation Homes
Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
Investor Relations Contact
Media Relations Contact
Scott McLaughlin
Kristi DesJarlais
844.456.INVH (4684)
972.421.3587
IR@InvitationHomes.com
Media@InvitationHomes.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Company's expectations regarding the performance of the Company's business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association and insurance costs, poor resident selection and defaults and non-renewals by the Company's residents, the Company's dependence on third parties for key services, risks related to the evaluation of properties, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of unfavorable global and United States economic conditions (including inflation and rising interest rates), uncertainty in financial markets (including as a result of recent bank failures and events affecting financial institutions), geopolitical tensions, natural disasters, climate change, and public health crises on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of its Annual Report on Form 10-K for the year ended December 31, 2022 (the "Annual Report"), as such factors may be updated from time to time in the Company's periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release, in the Annual Report, and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 7
Consolidated Balance Sheets
($ in thousands, except shares and per share data)
June 30, 2023
December 31, 2022
(unaudited)
Assets:
Investments in single-family residential properties, net
$
16,789,641
$
17,030,374
Cash and cash equivalents
414,292
262,870
Restricted cash
205,241
191,057
Goodwill
258,207
258,207
Investments in unconsolidated joint ventures
267,446
280,571
Other assets, net
607,428
513,629
Total assets
$
18,542,255
$
18,536,708
Liabilities:
Mortgage loans, net
$
1,636,505
$
1,645,795
Secured term loan, net
401,406
401,530
Unsecured notes, net
2,520,017
2,518,185
Term loan facilities, net
3,207,635
3,203,567
Revolving facility
—
—
Accounts payable and accrued expenses
241,129
198,423
Resident security deposits
177,008
175,552
Other liabilities
75,847
70,025
Total liabilities
8,259,547
8,213,077
Equity:
Stockholders' equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of June 30, 2023 and December 31, 2022
—
—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 611,956,170 and 611,411,382 outstanding as of June 30, 2023 and December 31, 2022, respectively
6,120
6,114
Additional paid-in capital
11,141,829
11,138,463
Accumulated deficit
(1,011,060)
(951,220)
Accumulated other comprehensive income
112,984
97,985
Total stockholders' equity
10,249,873
10,291,342
Non-controlling interests
32,835
32,289
Total equity
10,282,708
10,323,631
Total liabilities and equity
$
18,542,255
$
18,536,708
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 8
Consolidated Statements of Operations
($ in thousands, except shares and per share amounts) (unaudited)
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Revenues:
Rental revenues
$
543,185
$
505,936
$
1,078,402
$
989,931
Other property income
53,739
48,605
105,037
94,809
Management fee revenues
3,448
2,759
6,823
4,870
Total revenues
600,372
557,300
1,190,262
1,089,610
Expenses:
Property operating and maintenance
213,808
190,680
422,305
372,949
Property management expense
23,580
21,814
47,164
42,781
General and administrative
19,791
19,342
37,243
36,981
Interest expense
78,625
74,840
156,672
149,229
Depreciation and amortization
165,759
158,572
330,432
314,368
Impairment and other
1,868
1,355
3,031
2,870
Total expenses
503,431
466,603
996,847
919,178
Gains (losses) on investments in equity securities, net
524
(172)
612
(3,204)
Other, net
(3,941)
(3,827)
(5,435)
(3,233)
Gain on sale of property, net of tax
46,788
27,508
76,459
45,534
Losses from investments in unconsolidated joint ventures
(2,030)
(2,701)
(6,185)
(5,021)
Net income
138,282
111,505
258,866
204,508
Net income attributable to non-controlling interests
(418)
(542)
(760)
(930)
Net income attributable to common stockholders
137,864
110,963
258,106
203,578
Net income available to participating securities
(166)
(148)
(337)
(368)
Net income available to common stockholders — basic and diluted
$
137,698
$
110,815
$
257,769
$
203,210
Weighted average common shares outstanding — basic
611,954,347
610,331,643
611,772,406
608,381,768
Weighted average common shares outstanding — diluted
613,316,499
611,620,475
612,941,399
609,775,270
Net income per common share — basic
$
0.23
$
0.18
$
0.42
$
0.33
Net income per common share — diluted
$
0.22
$
0.18
$
0.42
$
0.33
Dividends declared per common share
$
0.26
$
0.22
$
0.52
$
0.44
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 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
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Net income available to common stockholders
$
137,698
$
110,815
$
257,769
$
203,210
Net income available to participating securities
166
148
337
368
Non-controlling interests
418
542
760
930
Depreciation and amortization on real estate assets
163,022
156,433
325,106
310,073
Impairment on depreciated real estate investments
81
36
259
137
Net gain on sale of previously depreciated investments in real estate
(46,788)
(27,508)
(76,459)
(45,534)
Depreciation and net gain on sale of investments in unconsolidated joint ventures
2,193
916
4,314
1,416
FFO
$
256,790
$
241,382
$
512,086
$
470,600
Core FFO Reconciliation
Q2 2023
Q2 2022
YTD 2023
YTD 2022
FFO
$
256,790
$
241,382
$
512,086
$
470,600
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1)
7,182
6,498
16,314
12,968
Share-based compensation expense
6,066
7,989
12,564
14,635
Severance expense
371
189
524
207
Casualty losses, net (1)
1,797
1,319
2,785
2,733
(Gains) losses on investments in equity securities, net
(524)
172
(612)
3,204
Core FFO
$
271,682
$
257,549
$
543,661
$
504,347
AFFO Reconciliation
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Core FFO
$
271,682
$
257,549
$
543,661
$
504,347
Recurring capital expenditures (1)
(36,400)
(37,544)
(73,693)
(70,374)
AFFO
$
235,282
$
220,005
$
469,968
$
433,973
Net income available to common stockholders
Weighted average common shares outstanding — diluted
613,316,499
611,620,475
612,941,399
609,775,270
Net income per common share — diluted
$
0.22
$
0.18
$
0.42
$
0.33
FFO, Core FFO, and AFFO
Weighted average common shares and OP Units outstanding — diluted
615,384,953
614,569,431
614,961,840
612,648,238
FFO per share — diluted
$
0.42
$
0.39
$
0.83
$
0.77
Core FFO per share — diluted
$
0.44
$
0.42
$
0.88
$
0.82
AFFO per share — diluted
$
0.38
$
0.36
$
0.76
$
0.71
(1)Includes the Company's share from unconsolidated joint ventures.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 10
Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
Weighted Average Amounts for Net Income
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Common shares — basic
611,954,347
610,331,643
611,772,406
608,381,768
Shares potentially issuable from vesting/conversion of equity-based awards
1,362,152
1,288,832
1,168,993
1,393,502
Total common shares — diluted
613,316,499
611,620,475
612,941,399
609,775,270
Weighted average amounts for FFO, Core FFO, and AFFO
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Common shares — basic
611,954,347
610,331,643
611,772,406
608,381,768
OP units — basic
1,863,192
2,770,970
1,801,329
2,655,270
Shares potentially issuable from vesting/conversion of equity-based awards
1,567,414
1,466,818
1,388,105
1,611,200
Total common shares and units — diluted
615,384,953
614,569,431
614,961,840
612,648,238
Period end amounts for Core FFO and AFFO
June 30, 2023
Common shares
611,956,170
OP units
1,869,483
Shares potentially issuable from vesting/conversion of equity-based awards
1,567,826
Total common shares and units — diluted
615,393,479
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 11
Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — As of June 30, 2023
($ in thousands) (unaudited)
Wtd Avg
Wtd Avg
Interest
Years to
Debt Structure
Balance
% of Total
Rate (1)
Maturity (2)
Secured:
Fixed (3)
$
1,396,123
17.9
%
4.0
%
5.1
Floating — swapped to fixed
652,229
8.3
%
4.2
%
2.5
Floating
—
—
%
—
%
—
Total secured
2,048,352
26.2
%
4.1
%
4.3
Unsecured:
Fixed
2,550,000
32.6
%
2.8
%
8.1
Floating — swapped to fixed
3,167,771
40.5
%
4.0
%
3.3
Floating
57,229
0.7
%
6.5
%
6.0
Total unsecured
5,775,000
73.8
%
3.5
%
5.5
Total Debt:
Fixed + floating swapped to fixed (3)
7,766,123
99.3
%
3.6
%
5.1
Floating
57,229
0.7
%
6.5
%
6.0
Total debt
7,823,352
100.0
%
3.6
%
5.1
Discount/amortization on Note Payable
(12,715)
Deferred financing costs, net
(45,074)
Total debt per Balance Sheet
7,765,563
Retained and repurchased certificates
(88,229)
Cash, ex-security deposits and letters of credit (4)
(439,306)
Deferred financing costs, net
45,074
Unamortized discount on note payable
12,715
Net debt
$
7,295,817
Leverage Ratios
June 30, 2023
Net Debt / TTM Adjusted EBITDAre
5.3
x
Credit Ratings
Ratings
Outlook
Fitch Ratings
BBB
Stable
Moody's Investors Service
Baa3
Positive
S&P Global Ratings
BBB
Stable
Unsecured Facilities Covenant Compliance (5)
Unsecured Public Bond Covenant Compliance (6)
Actual
Requirement
Actual
Requirement
Total leverage ratio
30.5
%
≤ 60%
Aggregate debt ratio
35.0
%
≤ 65%
Secured leverage ratio
8.4
%
≤ 45%
Secured debt ratio
8.9
%
≤ 40%
Unencumbered leverage ratio
26.8
%
≤ 60%
Unencumbered assets ratio
323.5
%
≥ 150%
Fixed charge coverage ratio
4.6x
≥ 1.5x
Debt service ratio
4.8x
≥ 1.5x
Unsecured interest coverage ratio
6.1x
≥ 1.75x
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 12
Supplemental Schedule 2(b) (Continued)
(1)Includes the impact of interest rate swaps in place and effective as of June 30, 2023.
(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)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 below. 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.
(6)Covenant calculations are specifically defined in the Company's Supplemental Indentures to the Base Indenture for its Senior Notes, which are summarized in the "Glossary and Reconciliations" section below. 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.
Q2 2023 Earnings Release and Supplemental Information — page 13
Supplemental Schedule 2(c)
Debt Maturity Schedule — As of June 30, 2023
($ in thousands) (unaudited)
Revolving
Secured
Unsecured
Credit
% of
Debt Maturities, with Extensions (1)
Debt
Debt
Facility
Balance
Total
2023
$
—
$
—
$
—
$
—
—
%
2024
—
—
—
—
—
%
2025
—
—
—
—
—
%
2026
652,229
2,500,000
—
3,152,229
40.2
%
2027
992,994
—
—
992,994
12.7
%
2028
—
750,000
—
750,000
9.6
%
2029
—
725,000
—
725,000
9.3
%
2030
—
—
—
—
—
%
2031
403,129
650,000
—
1,053,129
13.5
%
2032
—
600,000
—
600,000
7.7
%
2033
—
—
—
—
—
%
2034
—
400,000
—
400,000
5.1
%
2035
—
—
—
—
—
%
2036
—
150,000
—
150,000
1.9
%
2,048,352
5,775,000
—
7,823,352
100.0
%
Unamortized discount on note payable
(1,408)
(11,307)
—
(12,715)
Deferred financing costs, net
(9,033)
(36,041)
—
(45,074)
Total per Balance Sheet
$
2,037,911
$
5,727,652
$
—
$
7,765,563
.
(1)Assumes all extension options are exercised.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 14
Supplemental Schedule 3(a)
Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)
Number of Homes, period-end
Q2 2023
Total Portfolio
82,837
Same Store Portfolio
76,593
Same Store % of Total
92.5
%
Core Revenues
Q2 2023
Q2 2022
Change YoY
YTD 2023
YTD 2022
Change YoY
Total Portfolio
$
564,148
$
525,147
7.4
%
$
1,118,697
$
1,026,584
9.0
%
Same Store Portfolio
523,031
493,681
5.9
%
1,037,110
970,481
6.9
%
Core Operating Expenses
Q2 2023
Q2 2022
Change YoY
YTD 2023
YTD 2022
Change YoY
Total Portfolio
$
181,032
$
161,286
12.2
%
$
357,563
$
314,793
13.6
%
Same Store Portfolio
167,673
150,764
11.2
%
330,928
294,031
12.5
%
Net Operating Income
Q2 2023
Q2 2022
Change YoY
YTD 2023
YTD 2022
Change YoY
Total Portfolio
$
383,116
$
363,861
5.3
%
$
761,134
$
711,791
6.9
%
Same Store Portfolio
355,358
342,917
3.6
%
706,182
676,450
4.4
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 15
Supplemental Schedule 3(b)
Same Store Portfolio Core Operating Detail
($ in thousands) (unaudited)
Change
Change
Change
Q2 2023
Q2 2022
YoY
Q1 2023
Seq
YTD 2023
YTD 2022
YoY
Revenues:
Rental revenues (1)
$
504,085
$
476,020
5.9
%
$
496,525
1.5
%
$
1,000,610
$
936,527
6.8
%
Other property income, net (1)(2)
18,946
17,661
7.3
%
17,554
7.9
%
36,500
33,954
7.5
%
Core Revenues
523,031
493,681
5.9
%
514,079
1.7
%
1,037,110
970,481
6.9
%
Fixed Expenses:
Property taxes (3)
86,392
77,671
11.2
%
86,419
—
%
172,811
155,330
11.3
%
Insurance expenses (4)
10,339
8,717
18.6
%
9,135
13.2
%
19,474
17,334
12.3
%
HOA expenses
10,212
9,137
11.8
%
9,576
6.6
%
19,788
18,119
9.2
%
Controllable Expenses:
Repairs and maintenance, net (5)
21,674
23,065
(6.0)
%
21,644
0.1
%
43,318
43,072
0.6
%
Personnel, leasing and marketing
21,988
19,971
10.1
%
21,590
1.8
%
43,578
38,213
14.0
%
Turnover, net (5)(6)
11,249
8,241
36.5
%
8,886
26.6
%
20,135
14,357
40.2
%
Utilities and property administrative, net (5)(7)
5,819
3,962
46.9
%
6,005
(3.1)
%
11,824
7,606
55.5
%
Core Operating Expenses
167,673
150,764
11.2
%
163,255
2.7
%
330,928
294,031
12.5
%
Net Operating Income
$
355,358
$
342,917
3.6
%
$
350,824
1.3
%
$
706,182
$
676,450
4.4
%
(1)All rental revenues and other property income are reflected net of Bad Debt, which as a percentage of gross rental revenue, increased by 100 basis points from Q2 2022 to Q2 2023.
(2)Represents other property income net of all resident recoveries, which are reimbursements of charges for which residents are responsible. Same Store resident recoveries totaled $30,491, $27,857, $29,694, $60,185, and $55,291 for Q2 2023, Q2 2022, Q1 2023, YTD 2023, and YTD 2022, respectively.
(3)For Q2 2023, the year over year increase to property tax expense was primarily a result of an expected year over year increase in property taxes, in addition to the underaccrual of property tax expense in the first three quarters of 2022.
(4)As previously disclosed, the Company's annual insurance policy renewed on March 1, 2023, reflecting a full year 2023 growth rate for same store insurance expense of approximately 16%.
(5)These expenses are presented net of applicable resident recoveries.
(6)For Q2 2023, the year over year increase to turnover expense, net, was primarily attributable to higher resident turnover as a result of continued progress in working through the Company's lease compliance backlog.
(7)For Q2 2023, the year over year increase to utilities and property administrative expense, net, was primarily attributable to higher lease compliance costs as a result of continued progress in working through the Company's lease compliance backlog.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 16
Supplemental Schedule 3(c)
Same Store Quarterly Operating Trends
(unaudited)
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Average Occupancy
97.6
%
97.8
%
97.3
%
97.5
%
98.0
%
Turnover Rate
6.6
%
5.1
%
5.4
%
6.2
%
5.9
%
Trailing four quarters Turnover Rate
23.3
%
22.6
%
22.2
%
N/A
N/A
Average Monthly Rent
$
2,285
$
2,254
$
2,225
$
2,183
$
2,127
Rental Rate Growth (lease-over-lease):
Renewals
6.9
%
8.0
%
9.9
%
10.1
%
10.2
%
New leases
7.3
%
5.7
%
7.1
%
15.2
%
16.2
%
Blended
7.0
%
7.3
%
9.0
%
11.4
%
11.6
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 17
Supplemental Schedule 4
Wholly Owned Portfolio Characteristics — As of and for the Quarter Ended June 30, 2023 (1)
(unaudited)
Number of Homes
Average Occupancy
Average Monthly Rent
Average Monthly Rent PSF
Percent of Revenue
Western United States:
Southern California
7,684
96.7
%
$
2,935
$
1.73
11.3
%
Northern California
4,386
97.0
%
2,624
1.67
6.1
%
Seattle
4,060
97.9
%
2,760
1.43
6.0
%
Phoenix
8,889
97.5
%
1,965
1.17
9.5
%
Las Vegas
3,167
96.1
%
2,146
1.09
3.6
%
Denver
2,615
97.4
%
2,451
1.33
3.5
%
Western US Subtotal
30,801
97.1
%
2,465
1.41
40.0
%
Florida:
South Florida
8,386
97.4
%
2,834
1.52
12.5
%
Tampa
8,695
96.9
%
2,184
1.17
10.2
%
Orlando
6,536
97.2
%
2,131
1.14
7.5
%
Jacksonville
1,928
97.1
%
2,104
1.06
2.2
%
Florida Subtotal
25,545
97.2
%
2,379
1.27
32.4
%
Southeast United States:
Atlanta
12,619
96.3
%
1,925
0.93
12.6
%
Carolinas
5,348
97.5
%
1,957
0.92
5.5
%
Southeast US Subtotal
17,967
96.6
%
1,935
0.93
18.1
%
Texas:
Houston
2,075
96.1
%
1,814
0.93
2.0
%
Dallas
2,849
96.0
%
2,159
1.05
3.3
%
Texas Subtotal
4,924
96.0
%
2,013
1.00
5.3
%
Midwest United States:
Chicago
2,508
97.6
%
2,269
1.41
2.9
%
Minneapolis
1,092
96.7
%
2,226
1.13
1.3
%
Midwest US Subtotal
3,600
97.3
%
2,256
1.32
4.2
%
Total / Average
82,837
97.0
%
$
2,288
$
1.22
100.0
%
Same Store Total / Average
76,593
97.6
%
$
2,285
$
1.22
92.7
%
(1)All data is for the total wholly owned portfolio, unless otherwise noted.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 18
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, Q2 2023
# Homes
Q2 2023
Q2 2022
Change
Q2 2023
Q2 2022
Change
Q2 2023
Q2 2022
Change
Western United States:
Southern California
7,432
$
2,940
$
2,781
5.7
%
97.7
%
98.4
%
(0.7)
%
$
62,955
$
60,924
3.3
%
Northern California
3,871
2,597
2,468
5.2
%
97.7
%
98.2
%
(0.5)
%
29,696
29,156
1.9
%
Seattle
3,665
2,759
2,592
6.4
%
98.2
%
98.4
%
(0.2)
%
30,103
28,873
4.3
%
Phoenix
8,046
1,947
1,794
8.5
%
97.7
%
98.0
%
(0.3)
%
48,069
44,466
8.1
%
Las Vegas
2,799
2,144
2,015
6.4
%
96.7
%
97.9
%
(1.2)
%
17,780
17,107
3.9
%
Denver
2,142
2,458
2,347
4.7
%
98.3
%
97.5
%
0.8
%
16,009
15,333
4.4
%
Western US Subtotal
27,955
2,467
2,319
6.4
%
97.7
%
98.1
%
(0.4)
%
204,612
195,859
4.5
%
Florida:
South Florida
7,804
2,855
2,570
11.1
%
97.9
%
98.4
%
(0.5)
%
67,163
60,589
10.9
%
Tampa
7,989
2,163
1,979
9.3
%
97.7
%
98.2
%
(0.5)
%
52,689
48,632
8.3
%
Orlando
6,087
2,118
1,954
8.4
%
98.0
%
98.1
%
(0.1)
%
39,575
36,450
8.6
%
Jacksonville
1,857
2,092
1,956
7.0
%
97.3
%
97.7
%
(0.4)
%
11,836
11,082
6.8
%
Florida Subtotal
23,737
2,374
2,165
9.7
%
97.8
%
98.2
%
(0.4)
%
171,263
156,753
9.3
%
Southeast United States:
Atlanta
12,015
1,924
1,793
7.3
%
96.9
%
97.8
%
(0.9)
%
67,793
65,319
3.8
%
Carolinas
4,942
1,953
1,836
6.4
%
97.7
%
97.8
%
(0.1)
%
28,936
27,729
4.4
%
Southeast US Subtotal
16,957
1,932
1,806
7.0
%
97.1
%
97.8
%
(0.7)
%
96,729
93,048
4.0
%
Texas
Houston
1,914
1,812
1,724
5.1
%
97.3
%
97.3
%
—
%
10,562
10,029
5.3
%
Dallas
2,449
2,170
2,044
6.2
%
97.1
%
97.3
%
(0.2)
%
16,045
15,204
5.5
%
Texas Subtotal
4,363
2,013
1,904
5.7
%
97.2
%
97.3
%
(0.1)
%
26,607
25,233
5.4
%
Midwest United States:
Chicago
2,494
2,270
2,157
5.2
%
97.9
%
97.9
%
—
%
16,474
15,878
3.8
%
Minneapolis
1,087
2,226
2,131
4.5
%
97.5
%
97.3
%
0.2
%
7,346
6,910
6.3
%
Midwest US Subtotal
3,581
2,257
2,149
5.0
%
97.8
%
97.7
%
0.1
%
23,820
22,788
4.5
%
Total / Average
76,593
$
2,285
$
2,127
7.4
%
97.6
%
98.0
%
(0.4)
%
$
523,031
$
493,681
5.9
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 19
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, Q2 2023
# Homes
Q2 2023
Q1 2023
Change
Q2 2023
Q1 2023
Change
Q2 2023
Q1 2023
Change
Western United States:
Southern California
7,432
$
2,940
$
2,911
1.0
%
97.7
%
98.1
%
(0.4)
%
$
62,955
$
61,589
2.2
%
Northern California
3,871
2,597
2,577
0.8
%
97.7
%
98.1
%
(0.4)
%
29,696
29,197
1.7
%
Seattle
3,665
2,759
2,729
1.1
%
98.2
%
97.4
%
0.8
%
30,103
29,448
2.2
%
Phoenix
8,046
1,947
1,918
1.5
%
97.7
%
98.0
%
(0.3)
%
48,069
47,412
1.4
%
Las Vegas
2,799
2,144
2,131
0.6
%
96.7
%
96.7
%
—
%
17,780
17,273
2.9
%
Denver
2,142
2,458
2,426
1.3
%
98.3
%
97.6
%
0.7
%
16,009
15,808
1.3
%
Western US Subtotal
27,955
2,467
2,440
1.1
%
97.7
%
97.8
%
(0.1)
%
204,612
200,727
1.9
%
Florida:
South Florida
7,804
2,855
2,802
1.9
%
97.9
%
98.0
%
(0.1)
%
67,163
65,698
2.2
%
Tampa
7,989
2,163
2,131
1.5
%
97.7
%
98.0
%
(0.3)
%
52,689
51,881
1.6
%
Orlando
6,087
2,118
2,085
1.6
%
98.0
%
98.2
%
(0.2)
%
39,575
39,080
1.3
%
Jacksonville
1,857
2,092
2,063
1.4
%
97.3
%
97.9
%
(0.6)
%
11,836
11,692
1.2
%
Florida Subtotal
23,737
2,374
2,334
1.7
%
97.8
%
98.0
%
(0.2)
%
171,263
168,351
1.7
%
Southeast United States:
Atlanta
12,015
1,924
1,898
1.4
%
96.9
%
97.5
%
(0.6)
%
67,793
66,795
1.5
%
Carolinas
4,942
1,953
1,924
1.5
%
97.7
%
98.2
%
(0.5)
%
28,936
28,523
1.4
%
Southeast US Subtotal
16,957
1,932
1,906
1.4
%
97.1
%
97.7
%
(0.6)
%
96,729
95,318
1.5
%
Texas
Houston
1,914
1,812
1,794
1.0
%
97.3
%
97.4
%
(0.1)
%
10,562
10,363
1.9
%
Dallas
2,449
2,170
2,140
1.4
%
97.1
%
97.9
%
(0.8)
%
16,045
15,907
0.9
%
Texas Subtotal
4,363
2,013
1,989
1.2
%
97.2
%
97.7
%
(0.5)
%
26,607
26,270
1.3
%
Midwest United States:
Chicago
2,494
2,270
2,246
1.1
%
97.9
%
98.1
%
(0.2)
%
16,474
16,245
1.4
%
Minneapolis
1,087
2,226
2,203
1.0
%
97.5
%
96.7
%
0.8
%
7,346
7,168
2.5
%
Midwest US Subtotal
3,581
2,257
2,233
1.1
%
97.8
%
97.7
%
0.1
%
23,820
23,413
1.7
%
Total / Average
76,593
$
2,285
$
2,254
1.4
%
97.6
%
97.8
%
(0.2)
%
$
523,031
$
514,079
1.7
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 20
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 2023
# Homes
YTD 2023
YTD 2022
Change
YTD 2023
YTD 2022
Change
YTD 2023
YTD 2022
Change
Western United States:
Southern California
7,432
$
2,926
$
2,764
5.9
%
97.9
%
98.5
%
(0.6)
%
$
124,544
$
119,823
3.9
%
Northern California
3,871
2,587
2,441
6.0
%
97.9
%
98.4
%
(0.5)
%
58,893
56,151
4.9
%
Seattle
3,665
2,744
2,565
7.0
%
97.8
%
98.2
%
(0.4)
%
59,551
56,422
5.5
%
Phoenix
8,046
1,932
1,768
9.3
%
97.9
%
98.1
%
(0.2)
%
95,481
87,488
9.1
%
Las Vegas
2,799
2,137
1,987
7.5
%
96.7
%
98.1
%
(1.4)
%
35,053
33,584
4.4
%
Denver
2,142
2,442
2,326
5.0
%
98.0
%
97.8
%
0.2
%
31,817
30,257
5.2
%
Western US Subtotal
27,955
2,453
2,296
6.8
%
97.8
%
98.2
%
(0.4)
%
405,339
405339
383,725
5.6
%
Florida:
South Florida
7,804
2,829
2,530
11.8
%
98.0
%
98.6
%
(0.6)
%
132,861
119,798
10.9
%
Tampa
7,989
2,147
1,952
10.0
%
97.8
%
98.1
%
(0.3)
%
104,570
95,576
9.4
%
Orlando
6,087
2,101
1,930
8.9
%
98.1
%
98.1
%
—
%
78,655
72,000
9.2
%
Jacksonville
1,857
2,078
1,931
7.6
%
97.6
%
97.8
%
(0.2)
%
23,528
21,878
7.5
%
Florida Subtotal
23,737
2,354
2,135
10.3
%
97.9
%
98.2
%
(0.3)
%
339,614
309,252
9.8
%
Southeast United States:
Atlanta
12,015
1,911
1,771
7.9
%
97.2
%
97.8
%
(0.6)
%
134,588
128,184
5.0
%
Carolinas
4,942
1,938
1,818
6.6
%
98.0
%
97.8
%
0.2
%
57,459
54,768
4.9
%
Southeast US Subtotal
16,957
1,919
1,785
7.5
%
97.4
%
97.8
%
(0.4)
%
192,047
182,952
5.0
%
Texas
Houston
1,914
1,803
1,709
5.5
%
97.3
%
97.6
%
(0.3)
%
20,925
19,877
5.3
%
Dallas
2,449
2,155
2,018
6.8
%
97.5
%
97.3
%
0.2
%
31,952
29,781
7.3
%
Texas Subtotal
4,363
2,001
1,882
6.3
%
97.4
%
97.4
%
—
%
52,877
49,658
6.5
%
Midwest United States:
Chicago
2,494
2,258
2,137
5.7
%
98.0
%
98.3
%
(0.3)
%
32,719
31,235
4.8
%
Minneapolis
1,087
2,215
2,109
5.0
%
97.1
%
97.2
%
(0.1)
%
14,514
13,659
6.3
%
Midwest US Subtotal
3,581
2,245
2,129
5.4
%
97.7
%
98.0
%
(0.3)
%
47,233
44,894
5.2
%
Total / Average
76,593
$
2,269
$
2,102
7.9
%
97.7
%
98.1
%
(0.4)
%
$
1,037,110
$
970,481
6.9
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 21
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, Q2 2023
Q2 2023
Q2 2022
Change
Q2 2023
Q2 2022
Change
Q2 2023
Q2 2022
Change
Q2 2023
Q2 2022
Western United States:
Southern California
$
62,955
$
60,924
3.3
%
$
18,457
$
16,842
9.6
%
$
44,498
$
44,082
0.9
%
70.7
%
72.4
%
Northern California
29,696
29,156
1.9
%
7,915
7,526
5.2
%
21,781
21,630
0.7
%
73.3
%
74.2
%
Seattle
30,103
28,873
4.3
%
7,984
7,454
7.1
%
22,119
21,419
3.3
%
73.5
%
74.2
%
Phoenix
48,069
44,466
8.1
%
9,257
9,180
0.8
%
38,812
35,286
10.0
%
80.7
%
79.4
%
Las Vegas
17,780
17,107
3.9
%
4,200
3,623
15.9
%
13,580
13,484
0.7
%
76.4
%
78.8
%
Denver
16,009
15,333
4.4
%
3,112
3,118
(0.2)
%
12,897
12,215
5.6
%
80.6
%
79.7
%
Western US Subtotal
204,612
195,859
4.5
%
50,925
47,743
6.7
%
153,687
148,116
3.8
%
75.1
%
75.6
%
Florida:
South Florida
67,163
60,589
10.9
%
25,623
23,010
11.4
%
41,540
37,579
10.5
%
61.8
%
62.0
%
Tampa
52,689
48,632
8.3
%
20,127
17,352
16.0
%
32,562
31,280
4.1
%
61.8
%
64.3
%
Orlando
39,575
36,450
8.6
%
13,508
12,113
11.5
%
26,067
24,337
7.1
%
65.9
%
66.8
%
Jacksonville
11,836
11,082
6.8
%
4,229
3,685
14.8
%
7,607
7,397
2.8
%
64.3
%
66.7
%
Florida Subtotal
171,263
156,753
9.3
%
63,487
56,160
13.0
%
107,776
100,593
7.1
%
62.9
%
64.2
%
Southeast United States:
Atlanta
67,793
65,319
3.8
%
23,804
19,177
24.1
%
43,989
46,142
(4.7)
%
64.9
%
70.6
%
Carolinas
28,936
27,729
4.4
%
7,708
7,424
3.8
%
21,228
20,305
4.5
%
73.4
%
73.2
%
Southeast US Subtotal
96,729
93,048
4.0
%
31,512
26,601
18.5
%
65,217
66,447
(1.9)
%
67.4
%
71.4
%
Texas
Houston
10,562
10,029
5.3
%
5,170
4,775
8.3
%
5,392
5,254
2.6
%
51.1
%
52.4
%
Dallas
16,045
15,204
5.5
%
6,609
5,976
10.6
%
9,436
9,228
2.3
%
58.8
%
60.7
%
Texas Subtotal
26,607
25,233
5.4
%
11,779
10,751
9.6
%
14,828
14,482
2.4
%
55.7
%
57.4
%
Midwest United States:
Chicago
16,474
15,878
3.8
%
7,451
7,183
3.7
%
9,023
8,695
3.8
%
54.8
%
54.8
%
Minneapolis
7,346
6,910
6.3
%
2,519
2,326
8.3
%
4,827
4,584
5.3
%
65.7
%
66.3
%
Midwest US Subtotal
23,820
22,788
4.5
%
9,970
9,509
4.8
%
13,850
13,279
4.3
%
58.1
%
58.3
%
Same Store Total / Average
$
523,031
$
493,681
5.9
%
$
167,673
$
150,764
11.2
%
$
355,358
$
342,917
3.6
%
67.9
%
69.5
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 22
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, Q2 2023
Q2 2023
Q1 2023
Change
Q2 2023
Q1 2023
Change
Q2 2023
Q1 2023
Change
Q2 2023
Q1 2023
Western United States:
Southern California
$
62,955
$
61,589
2.2
%
$
18,457
$
17,879
3.2
%
$
44,498
$
43,710
1.8
%
70.7
%
71.0
%
Northern California
29,696
29,197
1.7
%
7,915
7,958
(0.5)
%
21,781
21,239
2.6
%
73.3
%
72.7
%
Seattle
30,103
29,448
2.2
%
7,984
8,251
(3.2)
%
22,119
21,197
4.3
%
73.5
%
72.0
%
Phoenix
48,069
47,412
1.4
%
9,257
9,223
0.4
%
38,812
38,189
1.6
%
80.7
%
80.5
%
Las Vegas
17,780
17,273
2.9
%
4,200
4,182
0.4
%
13,580
13,091
3.7
%
76.4
%
75.8
%
Denver
16,009
15,808
1.3
%
3,112
2,864
8.7
%
12,897
12,944
(0.4)
%
80.6
%
81.9
%
Western US Subtotal
204,612
200,727
1.9
%
50,925
50,357
1.1
%
153,687
150,370
2.2
%
75.1
%
74.9
%
Florida:
South Florida
67,163
65,698
2.2
%
25,623
25,282
1.3
%
41,540
40,416
2.8
%
61.8
%
61.5
%
Tampa
52,689
51,881
1.6
%
20,127
19,275
4.4
%
32,562
32,606
(0.1)
%
61.8
%
62.8
%
Orlando
39,575
39,080
1.3
%
13,508
13,099
3.1
%
26,067
25,981
0.3
%
65.9
%
66.5
%
Jacksonville
11,836
11,692
1.2
%
4,229
3,989
6.0
%
7,607
7,703
(1.2)
%
64.3
%
65.9
%
Florida Subtotal
171,263
168,351
1.7
%
63,487
61,645
3.0
%
107,776
106,706
1.0
%
62.9
%
63.4
%
Southeast United States:
Atlanta
67,793
66,795
1.5
%
23,804
22,075
7.8
%
43,989
44,720
(1.6)
%
64.9
%
67.0
%
Carolinas
28,936
28,523
1.4
%
7,708
7,696
0.2
%
21,228
20,827
1.9
%
73.4
%
73.0
%
Southeast US Subtotal
96,729
95,318
1.5
%
31,512
29,771
5.8
%
65,217
65,547
(0.5)
%
67.4
%
68.8
%
Texas
Houston
10,562
10,363
1.9
%
5,170
5,274
(2.0)
%
5,392
5,089
6.0
%
51.1
%
49.1
%
Dallas
16,045
15,907
0.9
%
6,609
6,576
0.5
%
9,436
9,331
1.1
%
58.8
%
58.7
%
Texas Subtotal
26,607
26,270
1.3
%
11,779
11,850
(0.6)
%
14,828
14,420
2.8
%
55.7
%
54.9
%
Midwest United States:
Chicago
16,474
16,245
1.4
%
7,451
7,336
1.6
%
9,023
8,909
1.3
%
54.8
%
54.8
%
Minneapolis
7,346
7,168
2.5
%
2,519
2,296
9.7
%
4,827
4,872
(0.9)
%
65.7
%
68.0
%
Midwest US Subtotal
23,820
23,413
1.7
%
9,970
9,632
3.5
%
13,850
13,781
0.5
%
58.1
%
58.9
%
Same Store Total / Average
$
523,031
$
514,079
1.7
%
$
167,673
$
163,255
2.7
%
$
355,358
$
350,824
1.3
%
67.9
%
68.2
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 23
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 2023
YTD 2023
YTD 2022
Change
YTD 2023
YTD 2022
Change
YTD 2023
YTD 2022
Change
YTD 2023
YTD 2022
Western United States:
Southern California
$
124,544
$
119,823
3.9
%
$
36,336
$
33,478
8.5
%
$
88,208
$
86,345
2.2
%
70.8
%
72.1
%
Northern California
58,893
56,151
4.9
%
15,873
14,830
7.0
%
43,020
41,321
4.1
%
73.0
%
73.6
%
Seattle
59,551
56,422
5.5
%
16,235
14,787
9.8
%
43,316
41,635
4.0
%
72.7
%
73.8
%
Phoenix
95,481
87,488
9.1
%
18,480
17,426
6.0
%
77,001
70,062
9.9
%
80.6
%
80.1
%
Las Vegas
35,053
33,584
4.4
%
8,382
6,815
23.0
%
26,671
26,769
(0.4)
%
76.1
%
79.7
%
Denver
31,817
30,257
5.2
%
5,976
5,533
8.0
%
25,841
24,724
4.5
%
81.2
%
81.7
%
Western US Subtotal
405,339
383,725
5.6
%
101,282
92,869
9.1
%
304,057
290,856
4.5
%
75.0
%
75.8
%
Florida:
South Florida
132,861
119,798
10.9
%
50,905
44,989
13.1
%
81,956
74,809
9.6
%
61.7
%
62.4
%
Tampa
104,570
95,576
9.4
%
39,402
33,971
16.0
%
65,168
61,605
5.8
%
62.3
%
64.5
%
Orlando
78,655
72,000
9.2
%
26,607
24,030
10.7
%
52,048
47,970
8.5
%
66.2
%
66.6
%
Jacksonville
23,528
21,878
7.5
%
8,218
7,214
13.9
%
15,310
14,664
4.4
%
65.1
%
67.0
%
Florida Subtotal
339,614
309,252
9.8
%
125,132
110,204
13.5
%
214,482
199,048
7.8
%
63.2
%
64.4
%
Southeast United States:
Atlanta
134,588
128,184
5.0
%
45,879
37,406
22.7
%
88,709
90,778
(2.3)
%
65.9
%
70.8
%
Carolinas
57,459
54,768
4.9
%
15,404
14,463
6.5
%
42,055
40,305
4.3
%
73.2
%
73.6
%
Southeast US Subtotal
192,047
182,952
5.0
%
61,283
51,869
18.1
%
130,764
131,083
(0.2)
%
68.1
%
71.6
%
Texas
Houston
20,925
19,877
5.3
%
10,444
9,257
12.8
%
10,481
10,620
(1.3)
%
50.1
%
53.4
%
Dallas
31,952
29,781
7.3
%
13,185
11,510
14.6
%
18,767
18,271
2.7
%
58.7
%
61.4
%
Texas Subtotal
52,877
49,658
6.5
%
23,629
20,767
13.8
%
29,248
28,891
1.2
%
55.3
%
58.2
%
Midwest United States:
Chicago
32,719
31,235
4.8
%
14,787
13,918
6.2
%
17,932
17,317
3.6
%
54.8
%
55.4
%
Minneapolis
14,514
13,659
6.3
%
4,815
4,404
9.3
%
9,699
9,255
4.8
%
66.8
%
67.8
%
Midwest US Subtotal
47,233
44,894
5.2
%
19,602
18,322
7.0
%
27,631
26,572
4.0
%
58.5
%
59.2
%
Same Store Total / Average
$
1,037,110
$
970,481
6.9
%
$
330,928
$
294,031
12.5
%
$
706,182
$
676,450
4.4
%
68.1
%
69.7
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 24
Supplemental Schedule 5(c)
Same Store Lease-Over-Lease Rent Growth
(unaudited)
Rental Rate Growth
Q2 2023
YTD 2023
Renewal
New
Blended
Renewal
New
Blended
Leases
Leases
Average
Leases
Leases
Average
Western United States:
Southern California
6.5
%
8.5
%
7.0
%
6.6
%
8.5
%
7.1
%
Northern California
3.9
%
6.3
%
4.6
%
4.6
%
5.7
%
4.9
%
Seattle
5.5
%
6.1
%
5.7
%
6.6
%
5.0
%
6.1
%
Phoenix
6.8
%
6.7
%
6.8
%
7.4
%
6.5
%
7.2
%
Las Vegas
4.5
%
1.4
%
3.4
%
5.9
%
1.9
%
4.5
%
Denver
4.0
%
6.2
%
4.6
%
4.7
%
3.9
%
4.5
%
Western US Subtotal
5.7
%
6.3
%
5.8
%
6.3
%
5.9
%
6.2
%
Florida:
South Florida
11.1
%
8.6
%
10.5
%
11.3
%
8.2
%
10.5
%
Tampa
7.8
%
8.9
%
8.2
%
8.3
%
8.2
%
8.2
%
Orlando
6.9
%
9.1
%
7.5
%
7.7
%
7.9
%
7.7
%
Jacksonville
4.9
%
5.1
%
5.0
%
6.0
%
4.8
%
5.6
%
Florida Subtotal
8.7
%
8.5
%
8.6
%
9.1
%
7.8
%
8.8
%
Southeast United States:
Atlanta
6.6
%
8.2
%
7.0
%
7.2
%
7.2
%
7.2
%
Carolinas
7.0
%
8.2
%
7.3
%
7.2
%
7.1
%
7.1
%
Southeast US Subtotal
6.7
%
8.2
%
7.1
%
7.2
%
7.2
%
7.2
%
Texas
Houston
5.2
%
4.4
%
5.0
%
4.8
%
3.2
%
4.4
%
Dallas
6.5
%
5.9
%
6.3
%
6.5
%
4.6
%
5.9
%
Texas Subtotal
6.0
%
5.4
%
5.8
%
5.8
%
4.1
%
5.3
%
Midwest United States:
Chicago
7.0
%
6.3
%
6.8
%
7.0
%
5.5
%
6.6
%
Minneapolis
6.7
%
3.6
%
6.0
%
7.0
%
0.2
%
4.8
%
Midwest US Subtotal
6.9
%
5.5
%
6.5
%
7.0
%
3.6
%
6.1
%
Total / Average
6.9
%
7.3
%
7.0
%
7.4
%
6.5
%
7.1
%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 25
Supplemental Schedule 6
Same Store Cost to Maintain, net (1)
($ in thousands, except per home amounts) (unaudited)
Total
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
R&M OpEx, net
$
21,674
$
21,644
$
23,063
$
27,713
$
23,065
Turn OpEx, net
11,249
8,886
10,299
9,928
8,241
Total recurring operating expenses, net
$
32,923
$
30,530
$
33,362
$
37,641
$
31,306
R&M CapEx
$
24,508
$
24,531
$
26,837
$
30,668
$
25,014
Turn CapEx
9,210
9,809
11,615
11,076
9,713
Total recurring capital expenditures
$
33,718
$
34,340
$
38,452
$
41,744
$
34,727
R&M OpEx, net + R&M CapEx
$
46,182
$
46,175
$
49,900
$
58,381
$
48,079
Turn OpEx, net + Turn CapEx
20,459
18,695
21,914
21,004
17,954
Total Cost to Maintain, net
$
66,641
$
64,870
$
71,814
$
79,385
$
66,033
Per Home
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Total Cost to Maintain, net
$
870
$
847
$
938
$
1,036
$
862
(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
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Recurring CapEx
$
36,173
$
37,114
$
40,945
$
44,556
$
37,481
Value Enhancing CapEx
12,875
9,458
12,258
14,809
12,223
Initial Renovation CapEx
4,356
4,037
13,853
30,055
33,109
Disposition CapEx
1,694
1,825
999
1,174
1,334
Total Capital Expenditures
$
55,098
$
52,434
$
68,055
$
90,594
$
84,147
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 26
Supplemental Schedule 7
Adjusted Property Management and G&A Reconciliation
($ in thousands) (unaudited)
Adjusted Property Management Expense
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Property management expense (GAAP)
$
23,580
$
21,814
$
47,164
$
42,781
Adjustments:
Share-based compensation expense
(1,442)
(1,794)
(3,402)
(3,220)
Adjusted property management expense
$
22,138
$
20,020
$
43,762
$
39,561
Adjusted G&A Expense
Q2 2023
Q2 2022
YTD 2023
YTD 2022
G&A expense (GAAP)
$
19,791
$
19,342
$
37,243
$
36,981
Adjustments:
Share-based compensation expense
(4,624)
(6,195)
(9,162)
(11,415)
Severance expense
(371)
(189)
(524)
(207)
Adjusted G&A expense
$
14,796
$
12,958
$
27,557
$
25,359
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 27
Supplemental Schedule 8(a)
Acquisitions and Dispositions
(unaudited)
March 31, 2023
Q2 2023 Acquisitions (1)
Q2 2023 Dispositions (2)
June 30, 2023
Homes
Homes
Avg. Est.
Homes
Average
Homes
Owned
Acq.
Cost Basis
Sold
Sales Price
Owned
Wholly Owned Portfolio
Western United States:
Southern California
7,746
—
$
—
62
$
632,703
7,684
Northern California
4,417
—
—
31
459,435
4,386
Seattle
4,076
—
—
16
436,781
4,060
Phoenix
8,904
3
360,397
18
316,907
8,889
Las Vegas
3,177
—
—
10
398,800
3,167
Denver
2,643
—
—
28
374,143
2,615
Western US Subtotal
30,963
3
360,397
165
488,648
30,801
Florida:
South Florida
8,407
3
371,613
24
438,313
8,386
Tampa
8,679
50
353,360
34
311,262
8,695
Orlando
6,488
61
299,848
13
281,654
6,536
Jacksonville
1,927
2
446,515
1
75,000
1,928
Florida Subtotal
25,501
116
327,298
72
344,985
25,545
Southeast United States:
Atlanta
12,636
36
340,250
53
193,350
12,619
Carolinas
5,355
4
393,378
11
274,809
5,348
Southeast US Subtotal
17,991
40
345,563
64
207,351
17,967
Texas:
Houston
2,093
—
—
18
219,847
2,075
Dallas
2,847
29
292,055
27
273,528
2,849
Texas: Subtotal
4,940
29
292,055
45
252,056
4,924
Midwest United States:
Chicago
2,514
—
—
6
222,233
2,508
Minneapolis
1,101
—
—
9
258,922
1,092
Midwest US Subtotal
3,615
—
—
15
244,247
3,600
Total / Average
83,010
188
$
326,276
361
$
370,478
82,837
Joint Venture Portfolio
2020 Rockpoint JV (3)
2,610
—
$
—
1
$
55,000
2,609
2022 Rockpoint JV (4)
132
—
—
—
—
132
FNMA JV (5)
475
—
—
14
431,464
461
Pathway Homes (6)
353
88
308,515
2
338,500
439
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 28
Supplemental Schedule 8(a) (Continued)
(1)Estimated stabilized cap rates on wholly owned acquisitions during the quarter averaged 5.8%. 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 2.0%. Disposition cap rate represents actual NOI recognized in the 12 months prior to the month of disposition, divided by sales price.
(3)Represents portfolio owned by the 2020 Rockpoint JV, of which Invitation Homes owns 20.0%.
(4)Represents portfolio owned by the 2022 Rockpoint JV, of which Invitation Homes owns 16.7%.
(5)Represents portfolio owned by the FNMA JV, of which Invitation Homes owns 10.0%.
(6)Represents portfolio owned by Pathway Homes, of which Invitation Homes owned 100.0% of the property portfolio as of June 30, 2023.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 29
Supplemental Schedule 8(b)
Expected Acquisition Pipeline of New Homes from Third-Party Homebuilders — As of June 30, 2023
(unaudited)
Pipeline as of June 30, 2023 (1)(2)
Estimated Deliveries in Q3-Q4 2023
Estimated Deliveries in 2024
Estimated Deliveries Thereafter
Avg. Estimated Cost Basis Per Home
Southern California
127
—
60
67
$
540,000
Phoenix
150
—
60
90
420,000
Tampa
592
140
193
259
330,000
Orlando
796
122
72
602
410,000
Atlanta
144
17
55
72
330,000
Carolinas
331
—
192
139
410,000
South Florida
26
23
3
—
360,000
Dallas
83
18
36
29
310,000
Total / Average
2,249
320
671
1,258
$
390,000
(1)Represents the number of new homes under contract as of June 30, 2023, that are expected to be built, sold and delivered to the Company by various third-party homebuilders during a future period.
(2)Pipeline rollforward:
Pipeline as of March 31, 2023
2,233
Q2 2023 additions & cancellations (net)
173
Q2 2023 deliveries
(157)
Pipeline as of June 30, 2023
2,249
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 30
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.
Bad Debt
Bad debt represents the Company's reserves for residents' accounts receivables balances that are aged greater than 30 days, under the rationale that a resident's security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident's security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. All rental revenues and other property income, in both Total Portfolio and Same Store Portfolio presentations, are reflected net of bad debt.
Core 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, impairment on depreciated real estate investments, and adjustments for unconsolidated joint ventures. Adjusted EBITDAre is defined as EBITDAre
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 31
before the following items: share-based compensation expense; severance; casualty losses, net; (gains) losses on investments in equity securities, net; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of the Company's financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.
The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that the Company's basis for computing these non-GAAP measures is comparable with that of other companies. See below for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated joint ventures.
The Company believes that FFO is a meaningful supplemental measure of the operating performance of its business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss.
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are not used as measures of the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's Core FFO and Adjusted FFO may not be comparable to the Core FFO and Adjusted FFO of other companies due to the fact that not all companies use the same definition of Core FFO and Adjusted FFO. Accordingly, there can be no assurance that the Company's basis for computing these non-GAAP measures is comparable with that of other companies. See "Reconciliation of FFO, Core FFO, and Adjusted FFO" for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.
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; management fee revenues; and income from investments in unconsolidated joint ventures.
The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that the Company's basis for computing this non-GAAP measure is comparable with that of other companies.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 32
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.
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.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 33
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.
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 "2020 Term Loan Facility" and together with the Revolving Facility, the "Credit Facility"), as set forth in the Company's Amended and Restated Revolving Credit and Term Loan Agreement dated December 8, 2020 (as amended by the First Amendment, dated as of April 18, 2023, the "Credit Agreement") and its $725 million term loan facility (the "2022 Term Loan Facility" and together with the 2020 Term Loan Facility, the "Term Loan Facilities"), as set forth in the Company's Term Loan Agreement dated June 22, 2022 (the "Term Loan Agreement" and together with the Credit Agreement, the "Unsecured Credit Agreements"). The metrics provided under the "Unsecured Facilities 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 Agreements, divided by (ii) total asset value (including the Company's pro rata share of assets in unconsolidated entities), as defined in the Unsecured Credit Agreements. For the purpose of calculating total asset value under the terms of the Unsecured Credit Agreements, 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 Agreements, divided by (ii) total asset value (including the Company's pro rata share of assets in unconsolidated entities), as defined in the Unsecured Credit Agreements. For the purpose of calculating total asset value under the terms of the Unsecured Credit Agreements, 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 Agreements, divided by (ii) unencumbered asset value, as defined in the Unsecured Credit Agreements. For the purpose of calculating unencumbered asset value under the terms of the Unsecured Credit Agreements, 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 Agreements, 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 Agreements. 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 Agreements, 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 Agreements.
The metrics set forth under the "Unsecured Facilities 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 Agreements 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 Agreements, see Exhibit 10.1 to
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 34
the Company’s Current Report on Form 8-K filed on April 24, 2023 and Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 22, 2022.
The breach of any of the covenants set forth in the Unsecured Credit Agreements could result in a default of the Company's indebtedness related to its Revolving Facility and Term Loan Facilities, 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, 2022, 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, as set forth in the Company's Supplemental Indentures to the Base Indenture for its Senior 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 occurred 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 Agreements, see Exhibit 4.2 and/or 4.3 to the Company’s Current Reports on Form 8-K filed on August 6, 2021, November 5, 2021, and April 5, 2022.
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, 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, 2022, 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.
Q2 2023 Earnings Release and Supplemental Information — page 35
Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Total revenues (Total Portfolio)
$
600,372
$
589,890
$
579,836
$
568,675
$
557,300
Management fee revenues
(3,448)
(3,375)
(3,326)
(3,284)
(2,759)
Total portfolio resident recoveries
(32,776)
(31,966)
(32,639)
(31,260)
(29,394)
Total Core Revenues (Total Portfolio)
564,148
554,549
543,871
534,131
525,147
Non-Same Store Core Revenues
(41,117)
(40,470)
(38,062)
(35,232)
(31,466)
Same Store Core Revenues
$
523,031
$
514,079
$
505,809
$
498,899
$
493,681
Reconciliation of Total Revenues to Same Store Core Revenues, YTD
(in thousands) (unaudited)
YTD 2023
YTD 2022
Total revenues (Total Portfolio)
$
1,190,262
$
1,089,610
Management fee revenues
(6,823)
(4,870)
Total portfolio resident recoveries
(64,742)
(58,156)
Total Core Revenues (Total Portfolio)
1,118,697
1,026,584
Non-Same Store Core Revenues
(81,587)
(56,103)
Same Store Core Revenues
$
1,037,110
$
970,481
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Property operating and maintenance expenses (Total Portfolio)
$
213,808
$
208,497
$
209,615
$
203,787
$
190,680
Total Portfolio resident recoveries
(32,776)
(31,966)
(32,639)
(31,260)
(29,394)
Core Operating Expenses (Total Portfolio)
181,032
176,531
176,976
172,527
161,286
Non-Same Store Core Operating Expenses
(13,359)
(13,276)
(11,409)
(12,437)
(10,522)
Same Store Core Operating Expenses
$
167,673
$
163,255
$
165,567
$
160,090
$
150,764
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, YTD
(in thousands) (unaudited)
YTD 2023
YTD 2022
Property operating and maintenance expenses (Total Portfolio)
$
422,305
$
372,949
Total Portfolio resident recoveries
(64,742)
(58,156)
Core Operating Expenses (Total Portfolio)
357,563
314,793
Non-Same Store Core Operating Expenses
(26,635)
(20,762)
Same Store Core Operating Expenses
$
330,928
$
294,031
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 36
Reconciliation of Net Income to Same Store NOI, Quarterly
(in thousands) (unaudited)
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Net income available to common stockholders
$
137,698
$
120,071
$
100,426
$
79,032
$
110,815
Net income available to participating securities
166
171
146
147
148
Non-controlling interests
418
342
290
250
542
Interest expense
78,625
78,047
78,409
76,454
74,840
Depreciation and amortization
165,759
164,673
163,318
160,428
158,572
Property management expense
23,580
23,584
22,770
22,385
21,814
General and administrative
19,791
17,452
16,921
20,123
19,342
Impairment and other (1)
1,868
1,163
5,823
20,004
1,355
Gain on sale of property, net of tax
(46,788)
(29,671)
(21,213)
(23,952)
(27,508)
(Gains) losses on investments in equity securities, net
(524)
(88)
(61)
796
172
Other, net (2)
3,941
1,494
(344)
8,372
3,827
Management fee revenues
(3,448)
(3,375)
(3,326)
(3,284)
(2,759)
Loss from investments in unconsolidated joint ventures
2,030
4,155
3,736
849
2,701
NOI (Total Portfolio)
383,116
378,018
366,895
361,604
363,861
Non-Same Store NOI
(27,758)
(27,194)
(26,653)
(22,795)
(20,944)
Same Store NOI
$
355,358
$
350,824
$
340,242
$
338,809
$
342,917
Reconciliation of Net Income to Same Store NOI, YTD
(in thousands) (unaudited)
YTD 2023
YTD 2022
Net income available to common stockholders
$
257,769
$
203,210
Net income available to participating securities
337
368
Non-controlling interests
760
930
Interest expense
156,672
149,229
Depreciation and amortization
330,432
314,368
Property management expense
47,164
42,781
General and administrative
37,243
36,981
Impairment and other
3,031
2,870
Gain on sale of property, net of tax
(76,459)
(45,534)
(Gains) losses on investments in equity securities, net
(612)
3,204
Other, net (2)
5,435
3,233
Management fee revenues
(6,823)
(4,870)
Loss from investments in unconsolidated joint ventures
6,185
5,021
NOI (Total Portfolio)
761,134
711,791
Non-Same Store NOI
(54,952)
(35,341)
Same Store NOI
$
706,182
$
676,450
(1)Includes $5.0 million and $19.0 million of net estimated losses and damages related to Hurricanes Ian and Nicole for Q4 2022 and Q3 2022, respectively.
(2)Includes interest income and other miscellaneous income and expenses.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 37
Reconciliation of Net Income to Adjusted EBITDAre
(in thousands, unaudited)
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Net income available to common stockholders
$
137,698
$
110,815
$
257,769
$
203,210
Net income available to participating securities
166
148
337
368
Non-controlling interests
418
542
760
930
Interest expense
78,625
74,840
156,672
149,229
Interest expense in unconsolidated joint ventures
3,145
859
7,723
1,451
Depreciation and amortization
165,759
158,572
330,432
314,368
Depreciation and amortization of investments in unconsolidated joint ventures
2,521
1,114
4,996
1,752
EBITDA
388,332
346,890
758,689
671,308
Gain on sale of property, net of tax
(46,788)
(27,508)
(76,459)
(45,534)
Impairment on depreciated real estate investments
81
36
259
137
Net gain on sale of investments in unconsolidated joint ventures
(304)
(186)
(634)
(316)
EBITDAre
341,321
319,232
681,855
625,595
Share-based compensation expense
6,066
7,989
12,564
14,635
Severance
371
189
524
207
Casualty losses, net (1)
1,797
1,319
2,785
2,733
(Gains) losses on investments in equity securities, net
(524)
172
(612)
3,204
Other, net (2)
3,941
3,827
5,435
3,233
Adjusted EBITDAre
$
352,972
$
332,728
$
702,551
$
649,607
Trailing Twelve Months (TTM) Ended
June 30, 2023
December 31, 2022
Net income available to common stockholders
$
437,227
$
382,668
Net income available to participating securities
630
661
Non-controlling interests
1,300
1,470
Interest expense
311,535
304,092
Interest expense in unconsolidated joint ventures
9,853
3,581
Depreciation and amortization
654,178
638,114
Depreciation and amortization of investments in unconsolidated joint ventures
9,082
5,838
EBITDA
1,423,805
1,336,424
Gain on sale of property, net of tax
(121,624)
(90,699)
Impairment on depreciated real estate investments
432
310
Net gain on sale of investments in unconsolidated joint ventures
(1,183)
(865)
EBITDAre
1,301,430
1,245,170
Share-based compensation expense
26,891
28,962
Severance
631
314
Casualty losses, net (1)
28,537
28,485
Losses on investments in equity securities, net
123
3,939
Other, net (2)
13,463
11,261
Adjusted EBITDAre
$
1,371,075
$
1,318,131
(1)Includes the Company's share from unconsolidated joint ventures, and includes $24.0 million of net estimated losses and damages related to Hurricanes Ian and Nicole for the TTM ended June 30, 2023 and December 31, 2022.
(2)Includes interest income and other miscellaneous income and expenses.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 38
Reconciliation of Net Debt / Trailing Twelve Months (TTM) Adjusted EBITDAre
(in thousands, except for ratio) (unaudited)
As of
As of
June 30, 2023
December 31, 2022
Mortgage loans, net
$
1,636,505
$
1,645,795
Secured term loan, net
401,406
401,530
Unsecured notes, net
2,520,017
2,518,185
Term loan facility, net
3,207,635
3,203,567
Revolving facility
—
—
Total Debt per Balance Sheet
7,765,563
7,769,077
Retained and repurchased certificates
(88,229)
(88,564)
Cash, ex-security deposits and letters of credit (1)
(439,306)
(275,989)
Deferred financing costs, net
45,074
51,076
Unamortized discounts on note payable
12,715
13,518
Net Debt (A)
$
7,295,817
$
7,469,118
For the TTM Ended
For the TTM Ended
June 30, 2023
December 31, 2022
Adjusted EBITDAre (B)
$
1,371,075
$
1,318,131
Net Debt / TTM Adjusted EBITDAre (A / B)
5.3
x
5.7
x
(1)Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit
Components of Non-Cash Interest Expense
(in thousands) (unaudited)
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Amortization of discounts on notes payable
$
403
$
393
$
803
$
855
Amortization of deferred financing costs
3,961
3,657
7,872
7,195
Change in fair value of interest rate derivatives
55
55
40
35
Amortization of swap fair value at designation
2,320
2,320
4,630
4,740
Company's share from unconsolidated joint ventures
443
73
2,969
143
Total non-cash interest expense
$
7,182
$
6,498
$
16,314
$
12,968
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2023 Earnings Release and Supplemental Information — page 39
