Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 2
Earnings Press Release
Invitation Homes Reports Fourth Quarter 2023 and Full Year 2023 Results
Dallas, TX, February 13, 2024 — Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”), the nation's premier single-family home leasing and management company, today announced its Fourth Quarter 2023 and Full Year (“FY”) 2023 financial and operating results.
Fourth Quarter 2023 and FY 2023 Highlights
•Year over year, in Q4 2023, total revenues increased 7.7% to $624 million, and property operating and maintenance costs increased 9.0% to $229 million. In FY 2023, total revenues increased 8.7% to $2,432 million, and property operating and maintenance costs increased 12.0% to $880 million.
•In Q4 2023, net income available to common stockholders totaled $129 million or $0.21 per diluted common share. In FY 2023, net income available to common stockholders totaled $519 million or $0.85 per diluted common share.
•Year over year, in Q4 2023, Core FFO per share increased 4.6% to $0.45, and AFFO per share increased 5.8% to $0.38. In FY 2023, Core FFO per share increased 6.0% to $1.77, and AFFO per share increased 6.3% to $1.50.
•In Q4 2023, Same Store NOI increased 5.6% year over year on 5.9% Same Store Core Revenues growth and 6.6% Same Store Core Operating Expenses growth. In FY 2023, Same Store NOI grew 4.8% year over year on 6.5% Same Store Core Revenues growth and 10.3% Same Store Core Operating Expenses growth.
•In Q4 2023, Same Store Bad Debt was 1.2% of gross rental revenue, representing three consecutive quarters of improvement and a year over year improvement of approximately 50 basis points.
•In Q4 2023, Same Store Average Occupancy was 97.1%, down 20 basis points year over year. In FY 2023, Same Store Average Occupancy was 97.4%, down 30 basis points year over year.
•In Q4 2023, Same Store renewal rent growth of 6.8% and flat Same Store new lease rent growth drove Same Store blended rent growth of 4.6%. In FY 2023, Same Store renewal rent growth of 7.0% and Same Store new lease rent growth of 4.5% drove Same Store blended rent growth of 6.3%.
•In Q4 2023, acquisitions by the Company and the Company's joint ventures totaled 460 homes for $159 million while dispositions totaled 398 homes for $146 million. In FY 2023, acquisitions by the Company and the Company’s joint ventures totaled 3,221 homes for $1,168 million while dispositions totaled 1,489 homes for $547 million.
•As previously announced, and subsequent to year end, the Company has begun a new era of providing professional property and asset management services to portfolio owners of single-family homes for lease. This was launched through an inaugural agreement with a third-party portfolio owner that has brought over 14,000 single family homes onto the Company’s industry-leading platform. The agreement provides Invitation Homes with property and asset management fees that the Company believes are commensurate with its expertise and unmatched scale. Substantially all of the homes are located within the Company’s existing markets, predominantly Atlanta, Phoenix, Dallas, Carolinas, Orlando, and Tampa.
Chief Executive Officer Dallas Tanner comments:
“I’m pleased once again by the outstanding performance of our business and the extraordinary delivery of customer service by our teams. During 2023, we successfully navigated a dynamic real estate market, pursued prudent growth initiatives and strategic developments, and continued to further enhance the resident experience. I’m very proud that our teams have continued this great momentum into 2024, including our announcement to provide our industry-leading brand of professional property and asset management services to an inaugural 14,000 additional households across the country. We are honored to be the nation’s premier single-family leasing and management company and are excited to continue raising the bar for individuals and families who desire the choice, flexibility, and convenience of leasing a home.”
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.
Q4 2023 Earnings Release and Supplemental Information — page 3
Financial Results
Net Income, FFO, Core FFO, and AFFO Per Share — Diluted
Q4 2023
Q4 2022
FY 2023
FY 2022
Net income
$
0.21
$
0.16
$
0.85
$
0.63
FFO
0.41
0.40
1.64
1.51
Core FFO
0.45
0.43
1.77
1.67
AFFO
0.38
0.36
1.50
1.41
Net Income
Net income per common share — diluted for Q4 2023 was $0.21, compared to net income per common share — diluted of $0.16 for Q4 2022. Total revenues and total property operating and maintenance expenses for Q4 2023 were $624 million and $229 million, respectively, compared to $580 million and $210 million, respectively, in Q4 2022.
Net income per common share — diluted for FY 2023 was $0.85, compared to net income per common share — diluted of $0.63 for FY 2022. Total revenues and total property operating and maintenance expenses for FY 2023 were $2,432 million and $880 million, respectively, compared to $2,238 million and $786 million, respectively, for FY 2022.
Core FFO
Year over year, Core FFO per share for Q4 2023 increased 4.6% to $0.45, primarily due to NOI growth. Year over year, Core FFO per share for FY 2023 increased 6.0% to $1.77, primarily due to NOI growth.
AFFO
Year over year, AFFO per share for Q4 2023 increased 5.8% to $0.38, primarily due to the increase in Core FFO per share described above. Year over year, AFFO per share for FY 2023 increased 6.3% to $1.50, primarily due to the increase in Core FFO per share described above.
Operating Results
Same Store Operating Results Snapshot
Number of homes in Same Store Portfolio:
75,775
Q4 2023
Q4 2022
FY 2023
FY 2022
Core Revenues growth (year over year)
5.9
%
6.5
%
Core Operating Expenses growth (year over year)
6.6
%
10.3
%
NOI growth (year over year)
5.6
%
4.8
%
Average Occupancy
97.1
%
97.3
%
97.4
%
97.7
%
Bad Debt % of gross rental revenue
1.2
%
1.7
%
1.4
%
1.3
%
Turnover Rate
5.5
%
5.4
%
23.9
%
22.3
%
Rental Rate Growth (lease-over-lease):
Renewals
6.8
%
9.9
%
7.0
%
10.0
%
New Leases
—
%
7.1
%
4.5
%
13.1
%
Blended
4.6
%
9.0
%
6.3
%
10.8
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 4
Same Store NOI
For the Same Store Portfolio of 75,775 homes, Same Store NOI for Q4 2023 increased 5.6% year over year on Same Store Core Revenues growth of 5.9% and Same Store Core Operating Expenses growth of 6.6%. FY 2023 Same Store NOI increased 4.8% year over year on Same Store Core Revenues growth of 6.5% and Same Store Core Operating Expenses growth of 10.3%.
Same Store Core Revenues
Same Store Core Revenues growth for Q4 2023 of 5.9% year over year was primarily driven by a 5.3% increase in Average Monthly Rent, a 50 basis point year over year improvement in Bad Debt as a percentage of gross rental revenue, and an 11.2% increase in other income, net of resident recoveries, partially offset by a 20 basis point year over year decline in Average Occupancy.
FY 2023 Same Store Core Revenues growth of 6.5% year over year was primarily driven by a 6.9% increase in Average Monthly Rent and a 10.3% increase in other income, net of resident recoveries, partially offset by a 30 basis point year over year decline in Average Occupancy and a 10 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 Q4 2023 increased 6.6% year over year, primarily attributable to a 7.9% increase in fixed expenses and a 4.2% increase in controllable expenses.
FY 2023 Same Store Core Operating Expenses increased 10.3% year over year, primarily driven by a 10.4% increase in fixed expenses and a 10.2% increase in controllable expenses.
Investment Management Activity
Acquisitions for Q4 2023 totaled 460 homes for $159 million through the Company's various acquisition channels. This included 251 wholly owned homes for $88 million in addition to 209 homes for $71 million in the Company's joint ventures. Dispositions for Q4 2023 included 381 wholly owned homes for gross proceeds of $138 million and 17 homes for gross proceeds of $8 million in the Company's joint ventures.
In FY 2023, the Company acquired 3,221 homes for $1,168 million, including 2,877 wholly owned homes for $1,054 million and 344 homes for $114 million in the Company's joint ventures. The company also sold 1,489 homes for $547 million, including 1,423 wholly owned homes for $517 million and 66 homes for $30 million in the Company's joint ventures.
As previously announced, and subsequent to year end, the Company has begun a new era of providing professional property and asset management services to portfolio owners of single-family homes for lease. This was launched through an inaugural agreement with a third-party portfolio owner that has brought over 14,000 single family homes onto the Company’s industry-leading platform. The agreement provides Invitation Homes with property and asset management fees that the Company believes are commensurate with its expertise and unmatched scale. Substantially all of the homes are located within the Company’s existing markets, predominantly Atlanta, Phoenix, Dallas, Carolinas, Orlando, and Tampa.
Balance Sheet and Capital Markets Activity
As of December 31, 2023, the Company had $1,701 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 December 31, 2023 was $8,613 million, consisting of $6,575 million of unsecured debt and $2,038 million of secured debt. Net debt / TTM adjusted EBITDAre was 5.5x at December 31, 2023, down from 5.7x as of December 31, 2022. The Company has no debt reaching final maturity until 2026, and in addition, 99.4% of its total debt is fixed rate or swapped to fixed rate, and over 75% of its total debt is unsecured.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 5
FY 2024 Guidance Details
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.
FY 2024 Guidance
FY 2024 Guidance Ranges
FY 2023 Actual
Core FFO per share — diluted
$1.82 to $1.90
$1.77
AFFO per share — diluted
$1.54 to $1.62
$1.50
Same Store Core Revenues growth (1)
4.5% to 5.5%
6.5%
Same Store Core Operating Expenses growth (2)
5.5% to 7.0%
10.3%
Same Store NOI growth
3.5% to 5.5%
4.8%
Wholly owned acquisitions
$600 million to $1,000 million
$1,054 million
JV acquisitions
$100 million to $300 million
$114 million
Wholly owned dispositions
$400 million to $600 million
$517 million
(1)Guidance assumes FY 2024 Average Occupancy is a similar result to FY 2023. Guidance assumes average Bad Debt for FY 2024 in a range of 65 to 95 basis points.
(2)Guidance assumes FY 2024 property tax expense growth in a range of 8% to 10% and insurance expense growth in the mid- to high teens.
Bridge from FY 2023 Results to FY 2024 Guidance Midpoint
Core FFO Per Share
FY 2023 reported result
$1.77
Impact from changes in:
Same Store NOI (3)
$0.10
Non-Same Store NOI
0.02
Management fee revenues, net (4)
0.02
Interest expense (5)
(0.03)
Other (6)
(0.02)
Total change
$0.09
FY 2024 guidance midpoint
$1.86
(3)Based on the 2024 Same Store pool, consisting of 78,823 homes as of January 2024.
(4)Contribution from management fee revenues, net, is primarily related to the Company’s recently announced agreement to provide professional property and asset management services to over 14,000 homes, net of associated expenses.
(5)Increase in cash interest expense primarily related to the Company’s $800 million aggregate public bond offering in August 2023, partially offset by other potential capital markets activities.
(6)Incremental increase in Other primarily related to additional investment in technology and administrative costs.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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 February 14, 2024, to discuss results for the fourth 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 March 14, 2024, 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 and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, “Together with you, we make a house a home,” reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
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 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.
Q4 2023 Earnings Release and Supplemental Information — page 7
Consolidated Balance Sheets
($ in thousands, except shares and per share data)
December 31, 2023
December 31, 2022
(unaudited)
Assets:
Investments in single-family residential properties, net
$
17,289,214
$
17,030,374
Cash and cash equivalents
700,618
262,870
Restricted cash
196,866
191,057
Goodwill
258,207
258,207
Investments in unconsolidated joint ventures
247,166
280,571
Other assets, net
528,896
513,629
Total assets
$
19,220,967
$
18,536,708
Liabilities:
Mortgage loans, net
$
1,627,256
$
1,645,795
Secured term loan, net
401,515
401,530
Unsecured notes, net
3,305,467
2,518,185
Term loan facilities, net
3,211,814
3,203,567
Revolving facility
—
—
Accounts payable and accrued expenses
200,590
198,423
Resident security deposits
180,455
175,552
Other liabilities
103,435
70,025
Total liabilities
9,030,532
8,213,077
Equity:
Stockholders' equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of December 31, 2023 and 2022
—
—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 611,958,239 and 611,411,382 outstanding as of December 31, 2023 and 2022, respectively
6,120
6,114
Additional paid-in capital
11,156,736
11,138,463
Accumulated deficit
(1,070,586)
(951,220)
Accumulated other comprehensive income
63,701
97,985
Total stockholders' equity
10,155,971
10,291,342
Non-controlling interests
34,464
32,289
Total equity
10,190,435
10,323,631
Total liabilities and equity
$
19,220,967
$
18,536,708
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 8
Consolidated Statements of Operations
($ in thousands, except shares and per share amounts)
Q4 2023
Q4 2022
FY 2023
FY 2022
(unaudited)
(unaudited)
(unaudited)
Revenues:
Rental revenues
$
563,844
$
524,330
$
2,197,516
$
2,028,931
Other property income
57,057
52,180
221,115
197,710
Management fee revenues
3,420
3,326
13,647
11,480
Total revenues
624,321
579,836
2,432,278
2,238,121
Expenses:
Property operating and maintenance
228,542
209,615
880,335
786,351
Property management expense
25,246
22,770
95,809
87,936
General and administrative
22,387
16,921
82,344
74,025
Interest expense
90,049
78,409
333,457
304,092
Depreciation and amortization
173,159
163,318
674,287
638,114
Impairment and other
3,069
5,823
8,596
28,697
Total expenses
542,452
496,856
2,074,828
1,919,215
Gains (losses) on investments in equity securities, net
237
61
350
(3,939)
Other, net
5,533
344
(2,435)
(11,261)
Gain on sale of property, net of tax
49,092
21,213
183,540
90,699
Losses from investments in unconsolidated joint ventures
(6,790)
(3,736)
(17,877)
(9,606)
Net income
129,941
100,862
521,028
384,799
Net income attributable to non-controlling interests
(395)
(290)
(1,558)
(1,470)
Net income attributable to common stockholders
129,546
100,572
519,470
383,329
Net income available to participating securities
(178)
(146)
(696)
(661)
Net income available to common stockholders — basic and diluted
$
129,368
$
100,426
$
518,774
$
382,668
Weighted average common shares outstanding — basic
612,026,090
611,427,853
611,893,784
609,770,610
Weighted average common shares outstanding — diluted
613,688,569
612,206,225
613,288,708
611,112,396
Net income per common share — basic
$
0.21
$
0.16
$
0.85
$
0.63
Net income per common share — diluted
$
0.21
$
0.16
$
0.85
$
0.63
Dividends declared per common share
$
0.54
$
0.22
$
1.32
$
0.88
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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
Q4 2023
Q4 2022
FY 2023
FY 2022
Net income available to common stockholders
$
129,368
$
100,426
$
518,774
$
382,668
Net income available to participating securities
178
146
696
661
Non-controlling interests
395
290
1,558
1,470
Depreciation and amortization on real estate assets
170,371
161,029
663,398
629,301
Impairment on depreciated real estate investments
85
72
427
310
Net gain on sale of previously depreciated investments in real estate
(49,092)
(21,213)
(183,540)
(90,699)
Depreciation and net gain on sale of investments in unconsolidated joint ventures
2,279
2,051
8,704
4,907
FFO
$
253,584
$
242,801
$
1,010,017
$
928,618
Core FFO Reconciliation
Q4 2023
Q4 2022
FY 2023
FY 2022
FFO
$
253,584
$
242,801
$
1,010,017
$
928,618
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1)
10,194
6,819
36,069
24,326
Share-based compensation expense
8,010
6,397
29,503
28,962
Legal settlements
—
—
2,000
7,400
Severance expense
61
61
977
314
Casualty losses, net (1)(2)
2,986
5,849
8,200
28,485
(Gains) losses on investments in equity securities, net
(237)
(61)
(350)
3,939
Core FFO
$
274,598
$
261,866
$
1,086,416
$
1,022,044
AFFO Reconciliation
Q4 2023
Q4 2022
FY 2023
FY 2022
Core FFO
$
274,598
$
261,866
$
1,086,416
$
1,022,044
Recurring capital expenditures (1)
(40,351)
(41,090)
(163,051)
(156,147)
AFFO
$
234,247
$
220,776
$
923,365
$
865,897
Net income available to common stockholders
Weighted average common shares outstanding — diluted
613,688,569
612,206,225
613,288,708
611,112,396
Net income per common share — diluted
$
0.21
$
0.16
$
0.85
$
0.63
FFO, Core FFO, and AFFO
Weighted average common shares and OP Units outstanding — diluted
615,843,083
614,172,679
615,367,734
613,669,133
FFO per share — diluted
$
0.41
$
0.40
$
1.64
$
1.51
Core FFO per share — diluted
$
0.45
$
0.43
$
1.77
$
1.67
AFFO per share — diluted
$
0.38
$
0.36
$
1.50
$
1.41
(1)Includes the Company's share from unconsolidated joint ventures.
(2)FY 2022 includes $24,000 of net estimated losses and damages related to Hurricanes Ian and Nicole.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 10
Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
Weighted Average Amounts for Net Income
Q4 2023
Q4 2022
FY 2023
FY 2022
Common shares — basic
612,026,090
611,427,853
611,893,784
609,770,610
Shares potentially issuable from vesting/conversion of equity-based awards
1,662,479
778,372
1,394,924
1,341,786
Total common shares — diluted
613,688,569
612,206,225
613,288,708
611,112,396
Weighted average amounts for FFO, Core FFO, and AFFO
Q4 2023
Q4 2022
FY 2023
FY 2022
Common shares — basic
612,026,090
611,427,853
611,893,784
609,770,610
OP units — basic
1,869,483
1,737,395
1,835,686
2,338,999
Shares potentially issuable from vesting/conversion of equity-based awards
1,947,510
1,007,431
1,638,264
1,559,524
Total common shares and units — diluted
615,843,083
614,172,679
615,367,734
613,669,133
Period end amounts for Core FFO and AFFO
December 31, 2023
Common shares
611,958,239
OP units
1,869,483
Shares potentially issuable from vesting/conversion of equity-based awards
1,997,388
Total common shares and units — diluted
615,825,110
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 11
Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — As of December 31, 2023
($ in thousands) (unaudited)
Wtd Avg
Wtd Avg
Interest
Years to
Debt Structure
Balance
% of Total
Rate (1)
Maturity (2)
Secured:
Fixed (3)
$
1,394,916
16.1
%
4.0
%
4.6
Floating — swapped to fixed
643,030
7.5
%
4.2
%
2.0
Floating
—
—
%
—
%
—
Total secured
2,037,946
23.6
%
4.1
%
3.8
Unsecured:
Fixed
3,350,000
38.9
%
3.4
%
7.7
Floating — swapped to fixed
3,176,970
36.9
%
4.0
%
2.8
Floating
48,030
0.6
%
6.7
%
5.5
Total unsecured
6,575,000
76.4
%
3.7
%
5.3
Total Debt:
Fixed + floating swapped to fixed (3)
8,564,916
99.4
%
3.8
%
4.9
Floating
48,030
0.6
%
6.7
%
5.5
Total debt
8,612,946
100.0
%
3.8
%
5.0
Discount/amortization on Note Payable
(21,376)
Deferred financing costs, net
(45,518)
Total debt per Balance Sheet
8,546,052
Retained and repurchased certificates
(87,703)
Cash, ex-security deposits and letters of credit (4)
(713,898)
Deferred financing costs, net
45,518
Unamortized discount on note payable
21,376
Net debt
$
7,811,345
Leverage Ratios
December 31, 2023
Net Debt / TTM Adjusted EBITDAre
5.5
x
Credit Ratings
Ratings
Outlook
Fitch Ratings
BBB
Positive
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
30.1
%
≤ 60%
Aggregate debt ratio
37.0
%
≤ 65%
Secured leverage ratio
5.9
%
≤ 45%
Secured debt ratio
8.5
%
≤ 40%
Unencumbered leverage ratio
29.3
%
≤ 60%
Unencumbered assets ratio
299.4
%
≥ 150%
Fixed charge coverage ratio
4.1 x
≥ 1.5x
Debt service ratio
4.3x
≥ 1.5x
Unsecured interest coverage ratio
5.2 x
≥ 1.75x
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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 December 31, 2023. For additional information regarding the Company’s interest rate swaps, please refer to Note 8—Derivative Instruments in the Company’s most recently filed Form 10-Q or Form 10-K.
(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.
Q4 2023 Earnings Release and Supplemental Information — page 13
Supplemental Schedule 2(c)
Debt Maturity Schedule — As of December 31, 2023
($ in thousands) (unaudited)
Revolving
Secured
Unsecured
Credit
% of
Debt Maturities, with Extensions (1)
Debt
Debt
Facility
Balance
Total
2024
$
—
$
—
$
—
$
—
—
%
2025
—
—
—
—
—
%
2026
643,030
2,500,000
—
3,143,030
36.6
%
2027
991,787
—
—
991,787
11.5
%
2028
—
750,000
—
750,000
8.7
%
2029
—
725,000
—
725,000
8.4
%
2030
—
450,000
—
450,000
5.2
%
2031
403,129
650,000
—
1,053,129
12.2
%
2032
—
600,000
—
600,000
7.0
%
2033
—
350,000
—
350,000
4.1
%
2034
—
400,000
—
400,000
4.6
%
2035
—
—
—
—
—
%
2036
—
150,000
—
150,000
1.7
%
2,037,946
6,575,000
—
8,612,946
100.0
%
Unamortized discount on note payable
(1,232)
(20,144)
—
(21,376)
Deferred financing costs, net
(7,943)
(37,575)
—
(45,518)
Total per Balance Sheet
$
2,028,771
$
6,517,281
$
—
$
8,546,052
.
(1)Assumes all extension options are exercised.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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
Q4 2023
Total Portfolio
84,567
Same Store Portfolio
75,775
Same Store % of Total
89.6
%
Core Revenues
Q4 2023
Q4 2022
Change YoY
FY 2023
FY 2022
Change YoY
Total Portfolio
$
585,851
$
543,871
7.7
%
$
2,282,198
$
2,104,586
8.4
%
Same Store Portfolio
530,188
500,663
5.9
%
2,081,637
1,954,335
6.5
%
Core Operating Expenses
Q4 2023
Q4 2022
Change YoY
FY 2023
FY 2022
Change YoY
Total Portfolio
$
193,492
$
176,976
9.3
%
$
743,902
$
664,296
12.0
%
Same Store Portfolio
174,526
163,721
6.6
%
676,017
612,657
10.3
%
Net Operating Income
Q4 2023
Q4 2022
Change YoY
FY 2023
FY 2022
Change YoY
Total Portfolio
$
392,359
$
366,895
6.9
%
$
1,538,296
$
1,440,290
6.8
%
Same Store Portfolio
355,662
336,942
5.6
%
1,405,620
1,341,678
4.8
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 15
Supplemental Schedule 3(b)
Same Store Portfolio Core Operating Detail
($ in thousands) (unaudited)
Change
Change
Change
Q4 2023
Q4 2022
YoY
Q3 2023
Seq
FY 2023
FY 2022
YoY
Revenues:
Rental revenues (1)
$
510,607
$
483,062
5.7
%
$
504,036
1.3
%
$
2,005,734
$
1,885,490
6.4
%
Other property income, net (1)(2)
19,581
17,601
11.2
%
20,050
(2.3)
%
75,903
68,845
10.3
%
Core Revenues
530,188
500,663
5.9
%
524,086
1.2
%
2,081,637
1,954,335
6.5
%
Fixed Expenses:
Property taxes
93,864
87,963
6.7
%
86,948
8.0
%
351,609
318,794
10.3
%
Insurance expenses
9,989
8,450
18.2
%
9,857
1.3
%
39,079
34,115
14.6
%
HOA expenses
10,646
9,691
9.9
%
10,113
5.3
%
40,393
37,576
7.5
%
Controllable Expenses:
Repairs and maintenance, net (3)
22,507
22,766
(1.1)
%
27,320
(17.6)
%
92,598
92,599
—
%
Personnel, leasing and marketing
21,041
19,910
5.7
%
20,660
1.8
%
84,805
77,102
10.0
%
Turnover, net (3)
9,917
10,250
(3.2)
%
12,078
(17.9)
%
42,033
34,369
22.3
%
Utilities and property administrative, net (3)
6,562
4,691
39.9
%
7,374
(11.0)
%
25,500
18,102
40.9
%
Core Operating Expenses
174,526
163,721
6.6
%
174,350
0.1
%
676,017
612,657
10.3
%
Net Operating Income
$
355,662
$
336,942
5.6
%
$
349,736
1.7
%
$
1,405,620
$
1,341,678
4.8
%
(1)All rental revenues and other property income are reflected net of Bad Debt, which as a percentage of gross rental revenue, improved by 50 basis points from Q4 2022 to Q4 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 $31,160, $30,065, $32,231, $122,841, and $113,795 for Q4 2023, Q4 2022, Q3 2023, FY 2023, and FY 2022, respectively.
(3)These expenses are presented net of applicable resident recoveries.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 16
Supplemental Schedule 3(c)
Same Store Quarterly Operating Trends
(unaudited)
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Average Occupancy
97.1
%
97.0
%
97.6
%
97.8
%
97.3
%
Turnover Rate
5.5
%
6.7
%
6.6
%
5.1
%
5.4
%
Trailing four quarters Turnover Rate
23.9
%
23.8
%
23.4
%
22.7
%
22.3
%
Average Monthly Rent
$
2,344
$
2,318
$
2,284
$
2,253
$
2,225
Rental Rate Growth (lease-over-lease):
Renewals
6.8
%
6.6
%
6.9
%
8.0
%
9.9
%
New leases
—
%
5.2
%
7.3
%
5.7
%
7.1
%
Blended
4.6
%
6.2
%
7.0
%
7.3
%
9.0
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 17
Supplemental Schedule 4
Wholly Owned Portfolio Characteristics — As of and for the Quarter Ended December 31, 2023 (1)
(unaudited)
Number of Homes
Average Occupancy
Average Monthly Rent
Average Monthly Rent PSF
Percent of Revenue
Western United States:
Southern California
7,553
96.3
%
$
3,019
$
1.78
11.2
%
Northern California
4,309
96.8
%
2,670
1.70
5.9
%
Seattle
4,041
97.2
%
2,808
1.46
5.9
%
Phoenix
9,228
96.4
%
2,027
1.19
9.7
%
Las Vegas
3,420
96.3
%
2,170
1.10
3.8
%
Denver
2,584
96.9
%
2,492
1.36
3.4
%
Western US Subtotal
31,135
96.6
%
2,513
1.44
39.9
%
Florida:
South Florida
8,294
96.1
%
2,942
1.57
12.2
%
Tampa
9,174
95.3
%
2,248
1.20
10.5
%
Orlando
6,718
96.3
%
2,189
1.17
7.5
%
Jacksonville
1,996
95.7
%
2,139
1.08
2.2
%
Florida Subtotal
26,182
95.9
%
2,446
1.30
32.4
%
Southeast United States:
Atlanta
12,726
95.5
%
1,985
0.96
12.5
%
Carolinas
5,494
96.1
%
2,010
0.94
5.5
%
Southeast US Subtotal
18,220
95.6
%
1,992
0.96
18.0
%
Texas:
Houston
2,354
93.8
%
1,876
0.94
2.2
%
Dallas
2,991
95.3
%
2,213
1.07
3.4
%
Texas Subtotal
5,345
94.6
%
2,066
1.02
5.6
%
Midwest United States:
Chicago
2,489
97.0
%
2,333
1.45
2.8
%
Minneapolis
1,076
95.5
%
2,270
1.16
1.2
%
Midwest US Subtotal
3,565
96.6
%
2,314
1.35
4.0
%
Other (2):
120
68.8
%
2,044
1.00
0.1
%
Total / Average
84,567
96.0
%
$
2,344
$
1.25
100.0
%
Same Store Total / Average
75,775
97.1
%
$
2,344
$
1.25
90.4
%
(1)All data is for the total wholly owned portfolio, unless otherwise noted.
(2)Represents homes located outside of the Company's 16 core markets, including those acquired as part of the Company's July 2023 portfolio acquisition that are generally being held for sale or evaluated for disposition once they become vacant.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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, Q4 2023
# Homes
Q4 2023
Q4 2022
Change
Q4 2023
Q4 2022
Change
Q4 2023
Q4 2022
Change
Western United States:
Southern California
7,295
$
3,022
$
2,874
5.1
%
97.3
%
98.1
%
(0.8)
%
$
64,761
$
60,355
7.3
%
Northern California
3,797
2,644
2,547
3.8
%
97.6
%
97.8
%
(0.2)
%
29,759
28,296
5.2
%
Seattle
3,649
2,811
2,689
4.5
%
97.5
%
96.7
%
0.8
%
30,495
28,732
6.1
%
Phoenix
8,020
1,998
1,893
5.5
%
97.1
%
97.0
%
0.1
%
48,723
46,335
5.2
%
Las Vegas
2,789
2,175
2,114
2.9
%
96.9
%
96.3
%
0.6
%
18,158
16,783
8.2
%
Denver
2,097
2,500
2,413
3.6
%
97.3
%
96.0
%
1.3
%
15,865
15,223
4.2
%
Western US Subtotal
27,647
2,521
2,410
4.6
%
97.3
%
97.2
%
0.1
%
207,761
195,724
6.1
%
Florida:
South Florida
7,701
2,967
2,750
7.9
%
96.8
%
97.5
%
(0.7)
%
68,128
63,463
7.4
%
Tampa
7,904
2,226
2,102
5.9
%
97.1
%
97.4
%
(0.3)
%
53,180
50,214
5.9
%
Orlando
6,040
2,179
2,058
5.9
%
97.6
%
98.1
%
(0.5)
%
40,087
38,013
5.5
%
Jacksonville
1,855
2,128
2,046
4.0
%
97.4
%
97.7
%
(0.3)
%
12,036
11,414
5.4
%
Florida Subtotal
23,500
2,448
2,298
6.5
%
97.2
%
97.6
%
(0.4)
%
173,431
163,104
6.3
%
Southeast United States:
Atlanta
11,872
1,979
1,875
5.5
%
96.3
%
96.8
%
(0.5)
%
68,905
65,557
5.1
%
Carolinas
4,923
2,006
1,903
5.4
%
97.3
%
97.6
%
(0.3)
%
29,561
28,032
5.5
%
Southeast US Subtotal
16,795
1,987
1,883
5.5
%
96.6
%
97.1
%
(0.5)
%
98,466
93,589
5.2
%
Texas
Houston
1,866
1,839
1,775
3.6
%
97.2
%
96.9
%
0.3
%
10,377
9,929
4.5
%
Dallas
2,415
2,219
2,123
4.5
%
97.0
%
96.8
%
0.2
%
16,194
15,363
5.4
%
Texas Subtotal
4,281
2,053
1,971
4.2
%
97.1
%
96.9
%
0.2
%
26,571
25,292
5.1
%
Midwest United States:
Chicago
2,481
2,332
2,221
5.0
%
97.3
%
97.4
%
(0.1)
%
16,741
16,109
3.9
%
Minneapolis
1,071
2,271
2,194
3.5
%
96.4
%
95.2
%
1.2
%
7,218
6,845
5.4
%
Midwest US Subtotal
3,552
2,314
2,213
4.6
%
97.0
%
96.8
%
0.2
%
23,959
22,954
4.4
%
Total / Average
75,775
$
2,344
$
2,225
5.3
%
97.1
%
97.3
%
(0.2)
%
$
530,188
$
500,663
5.9
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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, Q4 2023
# Homes
Q4 2023
Q3 2023
Change
Q4 2023
Q3 2023
Change
Q4 2023
Q3 2023
Change
Western United States:
Southern California
7,295
$
3,022
$
2,987
1.2
%
97.3
%
97.2
%
0.1
%
$
64,761
$
63,969
1.2
%
Northern California
3,797
2,644
2,627
0.6
%
97.6
%
97.6
%
—
%
29,759
29,536
0.8
%
Seattle
3,649
2,811
2,786
0.9
%
97.5
%
97.3
%
0.2
%
30,495
30,224
0.9
%
Phoenix
8,020
1,998
1,974
1.2
%
97.1
%
97.2
%
(0.1)
%
48,723
48,220
1.0
%
Las Vegas
2,789
2,175
2,162
0.6
%
96.9
%
96.0
%
0.9
%
18,158
17,852
1.7
%
Denver
2,097
2,500
2,480
0.8
%
97.3
%
97.7
%
(0.4)
%
15,865
15,800
0.4
%
Western US Subtotal
27,647
2,521
2,496
1.0
%
97.3
%
97.2
%
0.1
%
207,761
205,601
1.1
%
Florida:
South Florida
7,701
2,967
2,912
1.9
%
96.8
%
97.1
%
(0.3)
%
68,128
67,145
1.5
%
Tampa
7,904
2,226
2,201
1.1
%
97.1
%
96.8
%
0.3
%
53,180
52,342
1.6
%
Orlando
6,040
2,179
2,150
1.3
%
97.6
%
96.9
%
0.7
%
40,087
39,569
1.3
%
Jacksonville
1,855
2,128
2,114
0.7
%
97.4
%
96.6
%
0.8
%
12,036
11,866
1.4
%
Florida Subtotal
23,500
2,448
2,415
1.4
%
97.2
%
96.9
%
0.3
%
173,431
170,922
1.5
%
Southeast United States:
Atlanta
11,872
1,979
1,959
1.0
%
96.3
%
96.5
%
(0.2)
%
68,905
68,273
0.9
%
Carolinas
4,923
2,006
1,983
1.2
%
97.3
%
97.5
%
(0.2)
%
29,561
29,293
0.9
%
Southeast US Subtotal
16,795
1,987
1,966
1.1
%
96.6
%
96.8
%
(0.2)
%
98,466
97,566
0.9
%
Texas
Houston
1,866
1,839
1,827
0.7
%
97.2
%
97.1
%
0.1
%
10,377
10,299
0.8
%
Dallas
2,415
2,219
2,199
0.9
%
97.0
%
96.6
%
0.4
%
16,194
15,981
1.3
%
Texas Subtotal
4,281
2,053
2,036
0.8
%
97.1
%
96.8
%
0.3
%
26,571
26,280
1.1
%
Midwest United States:
Chicago
2,481
2,332
2,307
1.1
%
97.3
%
96.8
%
0.5
%
16,741
16,505
1.4
%
Minneapolis
1,071
2,271
2,255
0.7
%
96.4
%
96.6
%
(0.2)
%
7,218
7,212
0.1
%
Midwest US Subtotal
3,552
2,314
2,291
1.0
%
97.0
%
96.7
%
0.3
%
23,959
23,717
1.0
%
Total / Average
75,775
$
2,344
$
2,318
1.1
%
97.1
%
97.0
%
0.1
%
$
530,188
$
524,086
1.2
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 20
Supplemental Schedule 5(a) (Continued)
Same Store Core Revenues Growth Summary — FY
($ in thousands, except avg. monthly rent) (unaudited)
Avg. Monthly Rent
Average Occupancy
Core Revenues
YoY, FY 2023
# Homes
FY 2023
FY 2022
Change
FY 2023
FY 2022
Change
FY 2023
FY 2022
Change
Western United States:
Southern California
7,295
$
2,966
$
2,811
5.5
%
97.6
%
98.3
%
(0.7)
%
$
251,862
$
238,619
5.5
%
Northern California
3,797
2,611
2,489
4.9
%
97.8
%
98.1
%
(0.3)
%
117,294
111,931
4.8
%
Seattle
3,649
2,771
2,615
6.0
%
97.6
%
97.7
%
(0.1)
%
120,036
113,302
5.9
%
Phoenix
8,020
1,959
1,819
7.7
%
97.5
%
97.6
%
(0.1)
%
192,133
178,806
7.5
%
Las Vegas
2,789
2,153
2,039
5.6
%
96.6
%
97.4
%
(0.8)
%
70,967
67,262
5.5
%
Denver
2,097
2,467
2,364
4.4
%
97.7
%
97.1
%
0.6
%
62,841
59,923
4.9
%
Western US Subtotal
27,647
2,480
2,343
5.8
%
97.5
%
97.8
%
(0.3)
%
815,133
769,843
5.9
%
Florida:
South Florida
7,701
2,885
2,619
10.2
%
97.4
%
98.0
%
(0.6)
%
266,416
243,224
9.5
%
Tampa
7,904
2,180
2,014
8.2
%
97.4
%
97.8
%
(0.4)
%
209,019
193,827
7.8
%
Orlando
6,040
2,133
1,985
7.5
%
97.7
%
98.0
%
(0.3)
%
157,735
146,566
7.6
%
Jacksonville
1,855
2,099
1,979
6.1
%
97.3
%
97.7
%
(0.4)
%
47,404
44,573
6.4
%
Florida Subtotal
23,500
2,393
2,202
8.7
%
97.5
%
97.9
%
(0.4)
%
680,574
628,190
8.3
%
Southeast United States:
Atlanta
11,872
1,940
1,814
6.9
%
96.8
%
97.4
%
(0.6)
%
270,425
256,773
5.3
%
Carolinas
4,923
1,966
1,853
6.1
%
97.7
%
97.8
%
(0.1)
%
116,118
110,344
5.2
%
Southeast US Subtotal
16,795
1,948
1,825
6.7
%
97.1
%
97.5
%
(0.4)
%
386,543
367,117
5.3
%
Texas
Houston
1,866
1,817
1,736
4.7
%
97.3
%
97.3
%
—
%
41,089
39,153
4.9
%
Dallas
2,415
2,182
2,062
5.8
%
97.1
%
97.2
%
(0.1)
%
63,736
59,885
6.4
%
Texas Subtotal
4,281
2,023
1,920
5.4
%
97.2
%
97.2
%
—
%
104,825
99,038
5.8
%
Midwest United States:
Chicago
2,481
2,289
2,174
5.3
%
97.5
%
97.9
%
(0.4)
%
65,834
63,032
4.4
%
Minneapolis
1,071
2,238
2,144
4.4
%
96.8
%
96.4
%
0.4
%
28,728
27,115
5.9
%
Midwest US Subtotal
3,552
2,274
2,165
5.0
%
97.3
%
97.4
%
(0.1)
%
94,562
90,147
4.9
%
Total / Average
75,775
$
2,300
$
2,152
6.9
%
97.4
%
97.7
%
(0.3)
%
$
2,081,637
$
1,954,335
6.5
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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, Q4 2023
Q4 2023
Q4 2022
Change
Q4 2023
Q4 2022
Change
Q4 2023
Q4 2022
Change
Q4 2023
Q4 2022
Western United States:
Southern California
$
64,761
$
60,355
7.3
%
$
17,834
$
14,638
21.8
%
$
46,927
$
45,717
2.6
%
72.5
%
75.7
%
Northern California
29,759
28,296
5.2
%
7,208
6,354
13.4
%
22,551
21,942
2.8
%
75.8
%
77.5
%
Seattle
30,495
28,732
6.1
%
7,994
7,500
6.6
%
22,501
21,232
6.0
%
73.8
%
73.9
%
Phoenix
48,723
46,335
5.2
%
9,036
9,469
(4.6)
%
39,687
36,866
7.7
%
81.5
%
79.6
%
Las Vegas
18,158
16,783
8.2
%
4,145
4,047
2.4
%
14,013
12,736
10.0
%
77.2
%
75.9
%
Denver
15,865
15,223
4.2
%
3,148
3,024
4.1
%
12,717
12,199
4.2
%
80.2
%
80.1
%
Western US Subtotal
207,761
195,724
6.1
%
49,365
45,032
9.6
%
158,396
150,692
5.1
%
76.2
%
77.0
%
Florida:
South Florida
68,128
63,463
7.4
%
28,204
26,131
7.9
%
39,924
37,332
6.9
%
58.6
%
58.8
%
Tampa
53,180
50,214
5.9
%
20,534
19,905
3.2
%
32,646
30,309
7.7
%
61.4
%
60.4
%
Orlando
40,087
38,013
5.5
%
14,032
13,045
7.6
%
26,055
24,968
4.4
%
65.0
%
65.7
%
Jacksonville
12,036
11,414
5.4
%
4,504
4,172
8.0
%
7,532
7,242
4.0
%
62.6
%
63.4
%
Florida Subtotal
173,431
163,104
6.3
%
67,274
63,253
6.4
%
106,157
99,851
6.3
%
61.2
%
61.2
%
Southeast United States:
Atlanta
68,905
65,557
5.1
%
27,487
25,449
8.0
%
41,418
40,108
3.3
%
60.1
%
61.2
%
Carolinas
29,561
28,032
5.5
%
8,682
7,259
19.6
%
20,879
20,773
0.5
%
70.6
%
74.1
%
Southeast US Subtotal
98,466
93,589
5.2
%
36,169
32,708
10.6
%
62,297
60,881
2.3
%
63.3
%
65.1
%
Texas
Houston
10,377
9,929
4.5
%
5,039
5,708
(11.7)
%
5,338
4,221
26.5
%
51.4
%
42.5
%
Dallas
16,194
15,363
5.4
%
6,470
7,575
(14.6)
%
9,724
7,788
24.9
%
60.0
%
50.7
%
Texas Subtotal
26,571
25,292
5.1
%
11,509
13,283
(13.4)
%
15,062
12,009
25.4
%
56.7
%
47.5
%
Midwest United States:
Chicago
16,741
16,109
3.9
%
7,511
6,952
8.0
%
9,230
9,157
0.8
%
55.1
%
56.8
%
Minneapolis
7,218
6,845
5.4
%
2,698
2,493
8.2
%
4,520
4,352
3.9
%
62.6
%
63.6
%
Midwest US Subtotal
23,959
22,954
4.4
%
10,209
9,445
8.1
%
13,750
13,509
1.8
%
57.4
%
58.9
%
Same Store Total / Average
$
530,188
$
500,663
5.9
%
$
174,526
$
163,721
6.6
%
$
355,662
$
336,942
5.6
%
67.1
%
67.3
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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, Q4 2023
Q4 2023
Q3 2023
Change
Q4 2023
Q3 2023
Change
Q4 2023
Q3 2023
Change
Q4 2023
Q3 2023
Western United States:
Southern California
$
64,761
$
63,969
1.2
%
$
17,834
$
19,347
(7.8)
%
$
46,927
$
44,622
5.2
%
72.5
%
69.8
%
Northern California
29,759
29,536
0.8
%
7,208
8,153
(11.6)
%
22,551
21,383
5.5
%
75.8
%
72.4
%
Seattle
30,495
30,224
0.9
%
7,994
7,883
1.4
%
22,501
22,341
0.7
%
73.8
%
73.9
%
Phoenix
48,723
48,220
1.0
%
9,036
10,360
(12.8)
%
39,687
37,860
4.8
%
81.5
%
78.5
%
Las Vegas
18,158
17,852
1.7
%
4,145
4,669
(11.2)
%
14,013
13,183
6.3
%
77.2
%
73.8
%
Denver
15,865
15,800
0.4
%
3,148
3,246
(3.0)
%
12,717
12,554
1.3
%
80.2
%
79.5
%
Western US Subtotal
207,761
205,601
1.1
%
49,365
53,658
(8.0)
%
158,396
151,943
4.2
%
76.2
%
73.9
%
Florida:
South Florida
68,128
67,145
1.5
%
28,204
26,661
5.8
%
39,924
40,484
(1.4)
%
58.6
%
60.3
%
Tampa
53,180
52,342
1.6
%
20,534
20,480
0.3
%
32,646
31,862
2.5
%
61.4
%
60.9
%
Orlando
40,087
39,569
1.3
%
14,032
14,072
(0.3)
%
26,055
25,497
2.2
%
65.0
%
64.4
%
Jacksonville
12,036
11,866
1.4
%
4,504
4,257
5.8
%
7,532
7,609
(1.0)
%
62.6
%
64.1
%
Florida Subtotal
173,431
170,922
1.5
%
67,274
65,470
2.8
%
106,157
105,452
0.7
%
61.2
%
61.7
%
Southeast United States:
Atlanta
68,905
68,273
0.9
%
27,487
24,269
13.3
%
41,418
44,004
(5.9)
%
60.1
%
64.5
%
Carolinas
29,561
29,293
0.9
%
8,682
8,345
4.0
%
20,879
20,948
(0.3)
%
70.6
%
71.5
%
Southeast US Subtotal
98,466
97,566
0.9
%
36,169
32,614
10.9
%
62,297
64,952
(4.1)
%
63.3
%
66.6
%
Texas
Houston
10,377
10,299
0.8
%
5,039
5,375
(6.3)
%
5,338
4,924
8.4
%
51.4
%
47.8
%
Dallas
16,194
15,981
1.3
%
6,470
6,808
(5.0)
%
9,724
9,173
6.0
%
60.0
%
57.4
%
Texas Subtotal
26,571
26,280
1.1
%
11,509
12,183
(5.5)
%
15,062
14,097
6.8
%
56.7
%
53.6
%
Midwest United States:
Chicago
16,741
16,505
1.4
%
7,511
7,867
(4.5)
%
9,230
8,638
6.9
%
55.1
%
52.3
%
Minneapolis
7,218
7,212
0.1
%
2,698
2,558
5.5
%
4,520
4,654
(2.9)
%
62.6
%
64.5
%
Midwest US Subtotal
23,959
23,717
1.0
%
10,209
10,425
(2.1)
%
13,750
13,292
3.4
%
57.4
%
56.0
%
Same Store Total / Average
$
530,188
$
524,086
1.2
%
$
174,526
$
174,350
0.1
%
$
355,662
$
349,736
1.7
%
67.1
%
66.7
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 23
Supplemental Schedule 5(b) (Continued)
Same Store NOI Growth and Margin Summary — FY
($ in thousands) (unaudited)
Core Revenues
Core Operating Expenses
Net Operating Income
Core NOI Margin
YoY, FY 2023
FY 2023
FY 2022
Change
FY 2023
FY 2022
Change
FY 2023
FY 2022
Change
FY 2023
FY 2022
Western United States:
Southern California
$
251,862
$
238,619
5.5
%
$
72,813
$
65,316
11.5
%
$
179,049
$
173,303
3.3
%
71.1
%
72.6
%
Northern California
117,294
111,931
4.8
%
30,934
28,758
7.6
%
$
86,360
$
83,173
3.8
%
73.6
%
74.3
%
Seattle
120,036
113,302
5.9
%
32,038
29,575
8.3
%
$
87,998
$
83,727
5.1
%
73.3
%
73.9
%
Phoenix
192,133
178,806
7.5
%
37,821
37,475
0.9
%
$
154,312
$
141,331
9.2
%
80.3
%
79.0
%
Las Vegas
70,967
67,262
5.5
%
17,172
14,959
14.8
%
$
53,795
$
52,303
2.9
%
75.8
%
77.8
%
Denver
62,841
59,923
4.9
%
12,251
11,614
5.5
%
$
50,590
$
48,309
4.7
%
80.5
%
80.6
%
Western US Subtotal
815,133
769,843
5.9
%
203,029
187,697
8.2
%
612,104
582,146
5.1
%
75.1
%
75.6
%
Florida:
South Florida
266,416
243,224
9.5
%
105,154
94,138
11.7
%
161,262
149,086
8.2
%
60.5
%
61.3
%
Tampa
209,019
193,827
7.8
%
79,976
72,249
10.7
%
129,043
121,578
6.1
%
61.7
%
62.7
%
Orlando
157,735
146,566
7.6
%
54,532
49,576
10.0
%
103,203
96,990
6.4
%
65.4
%
66.2
%
Jacksonville
47,404
44,573
6.4
%
16,971
15,182
11.8
%
30,433
29,391
3.5
%
64.2
%
65.9
%
Florida Subtotal
680,574
628,190
8.3
%
256,633
231,145
11.0
%
423,941
397,045
6.8
%
62.3
%
63.2
%
Southeast United States:
Atlanta
270,425
256,773
5.3
%
97,037
82,292
17.9
%
173,388
174,481
(0.6)
%
64.1
%
68.0
%
Carolinas
116,118
110,344
5.2
%
32,375
29,635
9.2
%
83,743
80,709
3.8
%
72.1
%
73.1
%
Southeast US Subtotal
386,543
367,117
5.3
%
129,412
111,927
15.6
%
257,131
255,190
0.8
%
66.5
%
69.5
%
Texas
Houston
41,089
39,153
4.9
%
20,569
19,462
5.7
%
20,520
19,691
4.2
%
49.9
%
50.3
%
Dallas
63,736
59,885
6.4
%
26,293
24,967
5.3
%
37,443
34,918
7.2
%
58.7
%
58.3
%
Texas Subtotal
104,825
99,038
5.8
%
46,862
44,429
5.5
%
57,963
54,609
6.1
%
55.3
%
55.1
%
Midwest United States:
Chicago
65,834
63,032
4.4
%
30,087
28,178
6.8
%
35,747
34,854
2.6
%
54.3
%
55.3
%
Minneapolis
28,728
27,115
5.9
%
9,994
9,281
7.7
%
18,734
17,834
5.0
%
65.2
%
65.8
%
Midwest US Subtotal
94,562
90,147
4.9
%
40,081
37,459
7.0
%
54,481
52,688
3.4
%
57.6
%
58.4
%
Same Store Total / Average
$
2,081,637
$
1,954,335
6.5
%
$
676,017
$
612,657
10.3
%
$
1,405,620
$
1,341,678
4.8
%
67.5
%
68.7
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 24
Supplemental Schedule 5(c)
Same Store Lease-Over-Lease Rent Growth
(unaudited)
Rental Rate Growth
Q4 2023
FY 2023
Renewal
New
Blended
Renewal
New
Blended
Leases
Leases
Average
Leases
Leases
Average
Western United States:
Southern California
6.7
%
6.1
%
6.5
%
6.5
%
7.8
%
6.9
%
Northern California
4.9
%
0.6
%
3.4
%
4.6
%
4.0
%
4.4
%
Seattle
5.1
%
1.5
%
4.0
%
5.6
%
4.2
%
5.1
%
Phoenix
8.3
%
(4.4)
%
4.0
%
7.7
%
2.4
%
6.1
%
Las Vegas
4.2
%
(3.9)
%
1.2
%
4.8
%
0.1
%
3.1
%
Denver
5.5
%
0.7
%
3.7
%
4.7
%
3.3
%
4.3
%
Western US Subtotal
6.3
%
0.2
%
4.4
%
6.1
%
4.0
%
5.5
%
Florida:
South Florida
8.4
%
(0.6)
%
5.6
%
10.2
%
4.7
%
8.7
%
Tampa
7.7
%
(0.1)
%
4.9
%
7.7
%
5.5
%
7.0
%
Orlando
7.6
%
0.1
%
5.1
%
7.4
%
5.4
%
6.8
%
Jacksonville
6.0
%
(4.2)
%
1.8
%
5.8
%
2.1
%
4.6
%
Florida Subtotal
7.9
%
(0.6)
%
5.1
%
8.5
%
4.9
%
7.5
%
Southeast United States:
Atlanta
6.9
%
0.7
%
4.9
%
6.9
%
5.1
%
6.4
%
Carolinas
5.2
%
1.5
%
3.9
%
6.5
%
5.7
%
6.2
%
Southeast US Subtotal
6.4
%
0.9
%
4.6
%
6.8
%
5.3
%
6.3
%
Texas
Houston
5.2
%
(1.5)
%
3.2
%
4.9
%
2.0
%
4.1
%
Dallas
6.2
%
(1.2)
%
3.1
%
6.2
%
3.0
%
5.2
%
Texas Subtotal
5.7
%
(1.3)
%
3.2
%
5.6
%
2.7
%
4.7
%
Midwest United States:
Chicago
5.5
%
3.2
%
4.7
%
6.4
%
4.7
%
6.0
%
Minneapolis
5.8
%
(4.9)
%
2.2
%
6.4
%
(0.4)
%
4.3
%
Midwest US Subtotal
5.6
%
0.6
%
3.9
%
6.4
%
3.1
%
5.5
%
Total / Average
6.8
%
—
%
4.6
%
7.0
%
4.5
%
6.3
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
R&M OpEx, net
$
22,507
$
27,320
$
21,403
$
21,368
$
22,766
Turn OpEx, net
9,917
12,078
11,186
8,852
10,250
Total recurring operating expenses, net
$
32,424
$
39,398
$
32,589
$
30,220
$
33,016
R&M CapEx
$
26,961
$
33,235
$
24,165
$
24,202
$
26,508
Turn CapEx
10,154
11,717
9,153
9,781
11,543
Total recurring capital expenditures
$
37,115
$
44,952
$
33,318
$
33,983
$
38,051
R&M OpEx, net + R&M CapEx
$
49,468
$
60,555
$
45,568
$
45,570
$
49,274
Turn OpEx, net + Turn CapEx
20,071
23,795
20,339
18,633
21,793
Total Cost to Maintain, net
$
69,539
$
84,350
$
65,907
$
64,203
$
71,067
Per Home
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Total Cost to Maintain, net
$
918
$
1,113
$
870
$
847
$
938
(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
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Recurring CapEx
$
40,080
$
48,765
$
36,173
$
37,114
$
40,945
Value Enhancing CapEx
12,148
14,381
12,875
9,458
12,258
Initial Renovation CapEx
9,656
11,744
4,356
4,037
13,853
Disposition CapEx
1,021
1,258
1,694
1,825
999
Total Capital Expenditures
$
62,905
$
76,148
$
55,098
$
52,434
$
68,055
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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
Q4 2023
Q4 2022
FY 2023
FY 2022
Property management expense (GAAP)
$
25,246
$
22,770
$
95,809
$
87,936
Adjustments:
Share-based compensation expense
(1,731)
(1,512)
(6,963)
(6,493)
Adjusted property management expense
$
23,515
$
21,258
$
88,846
$
81,443
Adjusted G&A Expense
Q4 2023
Q4 2022
FY 2023
FY 2022
G&A expense (GAAP)
$
22,387
$
16,921
$
82,344
$
74,025
Adjustments:
Share-based compensation expense
(6,279)
(4,885)
(22,540)
(22,469)
Severance expense
(61)
(61)
(977)
(314)
Adjusted G&A expense
$
16,047
$
11,975
$
58,827
$
51,242
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 27
Supplemental Schedule 8(a)
Acquisitions and Dispositions
(unaudited)
September 30, 2023
Q4 2023 Acquisitions (1)
Q4 2023 Dispositions (2)
December 31, 2023
Homes
Homes
Avg. Est.
Homes
Average
Homes
Owned
Acq.
Cost Basis
Sold
Sales Price
Owned
Wholly Owned Portfolio
Western United States:
Southern California
7,605
—
$
—
52
$
607,777
7,553
Northern California
4,351
—
—
42
431,187
4,309
Seattle
4,054
—
—
13
448,650
4,041
Phoenix
9,233
15
383,129
20
290,544
9,228
Las Vegas
3,423
—
—
3
364,833
3,420
Denver
2,595
—
—
11
369,955
2,584
Western US Subtotal
31,261
15
383,129
141
471,784
31,135
Florida:
South Florida
8,336
8
362,457
50
416,720
8,294
Tampa
9,110
101
352,276
37
275,159
9,174
Orlando
6,690
40
372,567
12
294,083
6,718
Jacksonville
1,995
3
409,349
2
274,500
1,996
Florida Subtotal
26,131
152
359,278
101
347,474
26,182
Southeast United States:
Atlanta
12,752
31
329,762
57
239,476
12,726
Carolinas
5,475
27
373,647
8
335,500
5,494
Southeast US Subtotal
18,227
58
350,191
65
251,295
18,220
Texas:
Houston
2,367
5
273,249
18
261,486
2,354
Dallas
2,992
20
298,143
21
267,357
2,991
Texas: Subtotal
5,359
25
293,164
39
264,647
5,345
Midwest United States:
Chicago
2,496
—
—
7
230,343
2,489
Minneapolis
1,085
—
—
9
320,122
1,076
Midwest US Subtotal
3,581
—
—
16
280,844
3,565
Other (3):
138
1
395,211
19
270,605
120
Total / Average
84,697
251
$
352,162
381
$
361,960
84,567
Joint Venture Portfolio
2020 Rockpoint JV (4)
2,609
—
$
—
—
$
—
2,609
2022 Rockpoint JV (5)
132
177
339,431
—
—
309
FNMA JV (6)
442
—
—
16
465,969
426
Pathway Homes (7)
473
32
336,879
1
385,003
504
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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 6.0%. 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 1.9%. Disposition cap rate represents actual NOI recognized in the 12 months prior to the month of disposition, divided by sales price.
(3)Represents homes located outside of the Company's 16 core markets, including those acquired as part of the Company's July 2023 portfolio acquisition that are generally being held for sale or evaluated for disposition once they become vacant. During Q4 2023, the Company sold 19 of these homes with an average estimated cost basis of $263,768 for an average sales price of $270,605.
(4)Represents portfolio owned by the 2020 Rockpoint JV, of which Invitation Homes owns 20.0%.
(5)Represents portfolio owned by the 2022 Rockpoint JV, of which Invitation Homes owns 16.7%.
(6)Represents portfolio owned by the FNMA JV, of which Invitation Homes owns 10.0%.
(7)Represents portfolio owned by Pathway Homes, of which Invitation Homes owned 100.0% of the property portfolio as of December 31, 2023.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 29
Supplemental Schedule 8(b)
Expected Acquisition Pipeline of New Homes from Third-Party Homebuilders — As of December 31, 2023
(unaudited)
Pipeline as of December 31, 2023 (1)(2)(3)
Estimated Deliveries in 2024
Estimated Deliveries in 2025
Estimated Deliveries Thereafter
Avg. Estimated Cost Basis Per Home
Southern California
127
60
66
1
$
540,000
Phoenix
135
55
50
30
420,000
Tampa
497
245
74
178
320,000
Orlando
512
128
204
180
430,000
Atlanta
120
55
55
10
340,000
Carolinas
321
140
145
36
410,000
South Florida
21
21
—
—
360,000
Dallas
56
56
—
—
310,000
Total / Average
1,789
760
594
435
$
390,000
(1)Represents the number of new homes under contract as of December 31, 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 September 30, 2023
1,931
Q4 2023 additions and cancellations (net)
24
Q4 2023 deliveries
(166)
Pipeline as of December 31, 2023
1,789
(3)Not included in the pipeline above are an additional 10 new homes for an average estimated cost basis per home of $300,000 that the Company’s joint ventures are under contract to acquire upon completion in 2024 and beyond.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 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.
Q4 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.
Q4 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.
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.
Q4 2023 Earnings Release and Supplemental Information — page 33
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 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
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 34
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, April 5, 2022, and August 2, 2023.
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.
Q4 2023 Earnings Release and Supplemental Information — page 35
Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Total revenues (Total Portfolio)
$
624,321
$
617,695
$
600,372
$
589,890
$
579,836
Management fee revenues
(3,420)
(3,404)
(3,448)
(3,375)
(3,326)
Total portfolio resident recoveries
(35,050)
(36,641)
(32,776)
(31,966)
(32,639)
Total Core Revenues (Total Portfolio)
585,851
577,650
564,148
554,549
543,871
Non-Same Store Core Revenues
(55,663)
(53,564)
(45,825)
(45,509)
(43,208)
Same Store Core Revenues
$
530,188
$
524,086
$
518,323
$
509,040
$
500,663
Reconciliation of Total Revenues to Same Store Core Revenues, FY
(in thousands) (unaudited)
FY 2023
FY 2022
Total revenues (Total Portfolio)
$
2,432,278
$
2,238,121
Management fee revenues
(13,647)
(11,480)
Total portfolio resident recoveries
(136,433)
(122,055)
Total Core Revenues (Total Portfolio)
2,282,198
2,104,586
Non-Same Store Core Revenues
(200,561)
(150,251)
Same Store Core Revenues
$
2,081,637
$
1,954,335
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Property operating and maintenance expenses (Total Portfolio)
$
228,542
$
229,488
$
213,808
$
208,497
$
209,615
Total Portfolio resident recoveries
(35,050)
(36,641)
(32,776)
(31,966)
(32,639)
Core Operating Expenses (Total Portfolio)
193,492
192,847
181,032
176,531
176,976
Non-Same Store Core Operating Expenses
(18,966)
(18,497)
(15,296)
(15,126)
(13,255)
Same Store Core Operating Expenses
$
174,526
$
174,350
$
165,736
$
161,405
$
163,721
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, FY
(in thousands) (unaudited)
FY 2023
FY 2022
Property operating and maintenance expenses (Total Portfolio)
$
880,335
$
786,351
Total Portfolio resident recoveries
(136,433)
(122,055)
Core Operating Expenses (Total Portfolio)
743,902
664,296
Non-Same Store Core Operating Expenses
(67,885)
(51,639)
Same Store Core Operating Expenses
$
676,017
$
612,657
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 36
Reconciliation of Net Income to Same Store NOI, Quarterly
(in thousands) (unaudited)
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Net income available to common stockholders
$
129,368
$
131,637
$
137,698
$
120,071
$
100,426
Net income available to participating securities
178
181
166
171
146
Non-controlling interests
395
403
418
342
290
Interest expense
90,049
86,736
78,625
78,047
78,409
Depreciation and amortization
173,159
170,696
165,759
164,673
163,318
Property management expense
25,246
23,399
23,580
23,584
22,770
General and administrative
22,387
22,714
19,791
17,452
16,921
Impairment and other
3,069
2,496
1,868
1,163
5,823
Gain on sale of property, net of tax
(49,092)
(57,989)
(46,788)
(29,671)
(21,213)
(Gains) losses on investments in equity securities, net
(237)
499
(524)
(88)
(61)
Other, net (1)
(5,533)
2,533
3,941
1,494
(344)
Management fee revenues
(3,420)
(3,404)
(3,448)
(3,375)
(3,326)
Losses from investments in unconsolidated joint ventures
6,790
4,902
2,030
4,155
3,736
NOI (Total Portfolio)
392,359
384,803
383,116
378,018
366,895
Non-Same Store NOI
(36,697)
(35,067)
(30,529)
(30,383)
(29,953)
Same Store NOI
$
355,662
$
349,736
$
352,587
$
347,635
$
336,942
Reconciliation of Net Income to Same Store NOI, FY
(in thousands) (unaudited)
FY 2023
FY 2022
Net income available to common stockholders
$
518,774
$
382,668
Net income available to participating securities
696
661
Non-controlling interests
1,558
1,470
Interest expense
333,457
304,092
Depreciation and amortization
674,287
638,114
Property management expense
95,809
87,936
General and administrative
82,344
74,025
Impairment and other (2)
8,596
28,697
Gain on sale of property, net of tax
(183,540)
(90,699)
(Gains) losses on investments in equity securities, net
(350)
3,939
Other, net (1)
2,435
11,261
Management fee revenues
(13,647)
(11,480)
Losses from investments in unconsolidated joint ventures
17,877
9,606
NOI (Total Portfolio)
1,538,296
1,440,290
Non-Same Store NOI
(132,676)
(98,612)
Same Store NOI
$
1,405,620
$
1,341,678
(1)Includes interest income and other miscellaneous income and expenses.
(2)FY 2022 includes $24,000 of net estimated losses and damages related to Hurricanes Ian and Nicole.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 37
Reconciliation of Net Income to Adjusted EBITDAre
(in thousands, unaudited)
Q4 2023
Q4 2022
FY 2023
FY 2022
Net income available to common stockholders
$
129,368
$
100,426
$
518,774
$
382,668
Net income available to participating securities
178
146
696
661
Non-controlling interests
395
290
1,558
1,470
Interest expense
90,049
78,409
333,457
304,092
Interest expense in unconsolidated joint ventures
5,481
2,743
18,255
3,581
Depreciation and amortization
173,159
163,318
674,287
638,114
Depreciation and amortization of investments in unconsolidated joint ventures
2,783
2,372
10,469
5,838
EBITDA
401,413
347,704
1,557,496
1,336,424
Gain on sale of property, net of tax
(49,092)
(21,213)
(183,540)
(90,699)
Impairment on depreciated real estate investments
85
72
427
310
Net gain on sale of investments in unconsolidated joint ventures
(480)
(298)
(1,668)
(865)
EBITDAre
351,926
326,265
1,372,715
1,245,170
Share-based compensation expense
8,010
6,397
29,503
28,962
Severance
61
61
977
314
Casualty losses, net (1)(2)
2,986
5,849
8,200
28,485
(Gains) losses on investments in equity securities, net
(237)
(61)
(350)
3,939
Other, net (3)
(5,533)
(344)
2,435
11,261
Adjusted EBITDAre
$
357,213
$
338,167
$
1,413,480
$
1,318,131
(1)Includes the Company's share from unconsolidated joint ventures.
(2)FY 2022 includes $24,000 of net estimated losses and damages related to Hurricanes Ian and Nicole.
(3)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.
Q4 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
December 31, 2023
December 31, 2022
Mortgage loans, net
$
1,627,256
$
1,645,795
Secured term loan, net
401,515
401,530
Unsecured notes, net
3,305,467
2,518,185
Term loan facility, net
3,211,814
3,203,567
Revolving facility
—
—
Total Debt per Balance Sheet
8,546,052
7,769,077
Retained and repurchased certificates
(87,703)
(88,564)
Cash, ex-security deposits and letters of credit (1)
(713,898)
(275,989)
Deferred financing costs, net
45,518
51,076
Unamortized discounts on note payable
21,376
13,518
Net Debt (A)
$
7,811,345
$
7,469,118
For the TTM Ended
For the TTM Ended
December 31, 2023
December 31, 2022
Adjusted EBITDAre (B)
$
1,413,480
$
1,318,131
Net Debt / TTM Adjusted EBITDAre (A / B)
5.5
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)
Q4 2023
Q4 2022
FY 2023
FY 2022
Amortization of discounts on notes payable
$
663
$
399
$
1,998
$
1,653
Amortization of deferred financing costs
4,200
3,909
16,203
15,014
Change in fair value of interest rate derivatives
32
18
73
81
Amortization of swap fair value at designation
2,332
2,333
9,302
9,405
Company's share from unconsolidated joint ventures
2,967
160
8,493
(1,827)
Total non-cash interest expense
$
10,194
$
6,819
$
36,069
$
24,326
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q4 2023 Earnings Release and Supplemental Information — page 39
