Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 2
Earnings Press Release
Invitation Homes Reports Second Quarter 2024 Results
Dallas, TX, July 24, 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 Second Quarter 2024 financial and operating results.
Second Quarter 2024 Highlights
•Year over year, total revenues increased 8.8% to $653 million, property operating and maintenance costs increased 9.5% to $234 million, net income available to common stockholders decreased 47.0% to $73 million, inclusive of a $59.5 million accrual for certain legal matters, and net income per diluted common share decreased 47.0% to $0.12.
•Year over year, Core FFO per share increased 7.3% to $0.47 and AFFO per share increased 4.1% to $0.40.
•Same Store NOI increased 3.8% year over year on 4.8% Same Store Core Revenues growth and 7.1% Same Store Core Operating Expenses growth.
•Same Store Bad Debt was 0.8% of gross rental revenue, representing five consecutive quarters of improvement and a year over year improvement of approximately 50 basis points.
•Same Store Average Occupancy was 97.5%, down 10 basis points year over year.
•Same Store renewal rent growth of 5.6% and Same Store new lease rent growth of 3.6% drove Same Store blended rent growth of 5.0%.
•Acquisitions by the Company and the Company's joint ventures totaled 502 homes for approximately $166 million while dispositions totaled 266 homes for approximately $117 million.
•As previously announced on June 3, 2024, the Company entered into contracts during April and May with several of its homebuilder partners to construct over 1,000 newly built homes at a total investment of approximately $274 million. These homes will be located in three of the Company’s core markets of Dallas, Houston, and the Carolinas.
•On May 15, 2024, as previously announced, the Company began providing third-party property and asset management services for a portfolio of approximately 3,000 single-family homes for lease, bringing the Company’s total number of managed-only homes to 17,261 as of June 30, 2024.
•On April 29, 2024, as previously announced, the Company made a $37.5 million investment in Upward America Venture LP (the “Upward America JV”), representing a 7.2% ownership interest in a portfolio of approximately 3,700 single-family homes for lease. The Company also expects to provide property and asset management services to those homes and an additional 700 homes beginning in the third quarter of 2024.
•On April 29, 2024, as previously announced, the Company’s issuer and issue-level credit ratings were upgraded by Moody’s Investors Service to ‘Baa2’ from ‘Baa3’ with a Stable outlook.
Comments from Chief Executive Officer Dallas Tanner
“We’re pleased to announce our second quarter 2024 financial and operating results, which demonstrate the solid performance of our teams and the satisfaction and loyalty of our residents. Millions of families across America rely on the convenience and flexibility of leasing a single-family home, and we’re proud to be the premier choice among many available options. Through our best-in-class operating platform, Genuine Care for our residents, and our strategic approach to growth — including our burgeoning third-party management business and our valuable homebuilder relationships that are developing needed new housing communities — we believe we remain well positioned to continue our industry-leading occupancy, strong growth, and unwavering commitment to further elevating the resident experience.
“As a result of our performance during the first half of this year, and our expectations looking forward, we have raised the midpoint of our full year 2024 Core FFO per share guidance by $0.01 to $1.87.”
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 3
Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures
Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States (“GAAP”). These measures are defined herein and, as applicable, reconciled to the most comparable GAAP measures.
Financial Results
Net Income, FFO, Core FFO, and AFFO Per Share — Diluted
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Net income
$
0.12
$
0.22
$
0.35
$
0.42
FFO
0.34
0.42
0.77
0.83
Core FFO
0.47
0.44
0.94
0.88
AFFO
0.40
0.38
0.81
0.76
Net Income
Net income per common share — diluted for Q2 2024 was $0.12, compared to net income per common share — diluted of $0.22 for Q2 2023. Total revenues and total property operating and maintenance expenses for Q2 2024 were $653 million and $234 million, respectively, compared to $600 million and $214 million, respectively, for Q2 2023.
Net income per common share — diluted for YTD 2024 was $0.35, compared to net income per share — diluted of $0.42 for YTD 2023. Total revenues and total property operating and maintenance expenses for YTD 2024 were $1,299 million and $465 million, respectively, compared to $1,190 million and $422 million, respectively, for YTD 2023.
Core FFO
Year over year, Core FFO per share for Q2 2024 increased 7.3% to $0.47, while Core FFO per share for YTD 2024 increased 6.5% to $0.94, primarily due to NOI growth.
AFFO
Year over year, AFFO per share for Q2 2024 increased 4.1% to $0.40, while AFFO per share for YTD 2024 increased 5.4% to $0.81, primarily due to the increase in Core FFO per share described above.
Operating Results
Same Store Operating Results Snapshot
Number of homes in Same Store Portfolio:
77,994
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Core Revenues growth (year over year)
4.8
%
5.3
%
Core Operating Expenses growth (year over year)
7.1
%
7.1
%
NOI growth (year over year)
3.8
%
4.5
%
Average Occupancy
97.5
%
97.6
%
97.7
%
97.7
%
Bad Debt % of gross rental revenue
0.8
%
1.3
%
0.9
%
1.5
%
Turnover Rate
6.3
%
6.8
%
11.4
%
12.0
%
Rental Rate Growth (lease-over-lease):
Renewals
5.6
%
6.8
%
5.7
%
7.3
%
New Leases
3.6
%
6.7
%
2.3
%
6.0
%
Blended
5.0
%
6.8
%
4.7
%
6.9
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 4
Same Store NOI
For the Same Store Portfolio of 77,994 homes, Same Store NOI for Q2 2024 increased 3.8% year over year on Same Store Core Revenues growth of 4.8% and Same Store Core Operating Expenses growth of 7.1%.
YTD 2024 Same Store NOI increased 4.5% year over year on Same Store Core Revenues growth of 5.3% and Same Store Core Operating Expenses growth of 7.1%.
Same Store Core Revenues
Same Store Core Revenues growth for Q2 2024 of 4.8% year over year was primarily driven by a 4.2% increase in Average Monthly Rent, a 50 basis point year over year improvement in Bad Debt as a percentage of gross rental revenue, and a 9.6% increase in other income, net of resident recoveries, partially offset by a 10 basis point year over year decline in Average Occupancy.
YTD 2024 Same Store Core Revenues growth of 5.3% year over year was primarily driven by a 4.4% increase in Average Monthly Rent, a 60 basis point year over year decrease in Bad Debt as a percentage of gross rental revenue, and a 12.8% increase in other income, net of resident recoveries.
Same Store Core Operating Expenses
Same Store Core Operating Expenses for Q2 2024 increased 7.1% year over year, primarily attributable to an 8.3% increase in fixed expenses and a 4.8% increase in controllable expenses. The 8.3% increase in fixed expenses was primarily attributable to property taxes expense, which for Q2 2024 increased 10.3% year over year. As previously disclosed, due to the underaccrual of property taxes expense in the first three quarters of 2023, and the associated catch up in Q4 2023, the Company expects property taxes expense growth for the first three quarters of 2024 to be elevated, prior to a partial offset in Q4 2024 resulting in the Company’s expected guidance range for FY 2024 property taxes expense growth.
YTD 2024 Same Store Core Operating Expenses increased 7.1% year over year, primarily driven by a 10.0% increase in fixed expenses and a 1.8% increase in controllable expenses.
Investment and Property Management Activity
Acquisitions for Q2 2024 included 445 wholly owned homes for approximately $146 million and 57 homes for approximately $19 million in the Company's joint ventures. Dispositions for Q2 2024 included 250 wholly owned homes for gross proceeds of approximately $111 million and 16 homes for gross proceeds of approximately $6 million in the Company's joint ventures.
Year to date through Q2 2024, the Company acquired 700 wholly owned homes for $238 million and 73 homes for $25 million in the Company's joint ventures. The company also sold 627 wholly owned homes for $259 million and 36 homes for $15 million in the Company's joint ventures.
As previously announced on June 3, 2024, the Company entered into contracts during April and May with several of its homebuilder partners to construct over 1,000 newly built homes at a total investment of approximately $274 million. These homes will be located in three of the Company’s core markets of Dallas, Houston, and the Carolinas.
On May 15, 2024, as previously announced, the Company began providing third-party property and asset management services for a portfolio of approximately 3,000 homes, bringing the Company’s total number of managed-only homes to 17,261 as of June 30, 2024.
On April 29, 2024, as previously announced, the Company made a $37.5 million investment in the Upward America JV, representing a 7.2% ownership interest in a portfolio of approximately 3,700 single-family homes for lease. The Company also expects to provide property and asset management services to those homes and an additional 700 homes beginning in the third quarter of 2024.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 5
A summary of the Company’s owned and/or managed homes is included in the following table:
Summary of Homes Owned and/or Managed As Of 6/30/2024
Number of Homes Owned and/or Managed as of 3/31/2024
Acquired or Added In Q2 2024
Disposed or Subtracted In Q2 2024
Number of Homes Owned and/or Managed as of 6/30/2024
Wholly owned homes
84,445
445
(250)
84,640
Joint venture owned homes
3,844
3,777
(16)
7,605
Managed-only homes
14,278
2,986
(3)
17,261
Total homes owned and/or managed
102,567
7,208
(269)
109,506
Balance Sheet and Capital Markets Activity
As of June 30, 2024, the Company had $1,749 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, 2024 was $8,602 million, consisting of $6,575 million of unsecured debt and $2,027 million of secured debt. Net debt / TTM adjusted EBITDAre was 5.3x at June 30, 2024, down from 5.5x as of December 31, 2023. The Company has no debt reaching final maturity until 2026, and in addition, 99.5% of its total debt was fixed rate or swapped to fixed rate and 83.6% of its wholly owned homes were unencumbered as of June 30, 2024. As previously announced on April 29, 2024, the Company’s issuer and issue-level credit ratings were upgraded by Moody’s Investors Service to ‘Baa2’ from ‘Baa3’ with a Stable outlook.
FY 2024 Guidance Details
The Company has revised its full year 2024 guidance expectations that were originally provided in February 2024 and reaffirmed in April 2024, as outlined in the following table:
FY 2024 Guidance
FY 2024 Current Guidance Range
FY 2024 Midpoint
Current
Prior
Change
Core FFO per share — diluted
$1.84 to $1.90
$1.87
$1.86
$0.01
AFFO per share — diluted
$1.55 to $1.61
$1.58
$1.58
$ —
Same Store Core Revenues growth (1)
4.50% to 5.25%
4.875%
5.0%
(0.125)%
Same Store Core Operating Expenses growth (2)
5.25% to 6.25%
5.75%
6.25%
(0.5)%
Same Store NOI growth
3.75% to 5.25%
4.5%
4.5%
—%
Wholly owned acquisitions
$600 million to $1,000 million
$800 million
$800 million
$ —
JV acquisitions
$100 million to $300 million
$200 million
$200 million
$ —
Wholly owned dispositions
$400 million to $600 million
$500 million
$500 million
$ —
(1)Guidance assumes FY 2024 Average Occupancy is similar to FY 2023 Average Occupancy. Guidance assumes average Bad Debt for FY 2024 in a range of 65 to 95 basis points.
(2)Guidance assumes FY 2024 property taxes expense growth in a range of 8.0% to 9.5% year over year and FY 2024 insurance expense growth of approximately 7.5% year over year.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 6
The Company does not provide guidance for the most comparable GAAP financial measures of net income (loss), total revenues, and property operating and maintenance expense. Additionally, a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses growth, and Same Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because the Company is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance period.
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on July 25, 2024, to review second quarter of 2024 results, discuss recent events, and conduct a question-and-answer session. The domestic dial-in number is 1-888-330-2384, and the international dial-in number is 1-240-789-2701. The conference ID is 7714113.
Listen-only participants are encouraged to join the conference call via a live audio webcast, which is available online from the Company’s investor relations website at www.invh.com. Following the conclusion of the earnings call, the Company will post a replay of the webcast to its website for one year.
Supplemental Information
The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes' Investor Relations website at www.invh.com.
About Invitation Homes
Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The Company's mission, “Together with you, we make a house a home,” reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
Investor Relations Contact
Media Relations Contact
Scott McLaughlin
Kristi DesJarlais
844.456.INVH (4684)
972.421.3587
IR@InvitationHomes.com
Media@InvitationHomes.com
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 7
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Company's expectations regarding the performance of the Company's business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association and insurance costs, poor resident selection and defaults and non-renewals by the Company's residents, the Company's dependence on third parties for key services, risks related to the evaluation of properties, performance of the Company's information technology systems, development and use of artificial intelligence, risks related to the Company's indebtedness, and risks related to the potential negative impact of unfavorable global and United States economic conditions (including inflation 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, 2023 (the “Annual Report”), as such factors may be updated from time to time in the Company's periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release, in the Annual Report, and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 8
Consolidated Balance Sheets
($ in thousands, except shares and per share data)
June 30, 2024
December 31, 2023
(unaudited)
Assets:
Investments in single-family residential properties, net
$
17,164,808
$
17,289,214
Cash and cash equivalents
749,398
700,618
Restricted cash
213,780
196,866
Goodwill
258,207
258,207
Investments in unconsolidated joint ventures
268,808
247,166
Other assets, net
584,442
528,896
Total assets
$
19,239,443
$
19,220,967
Liabilities:
Mortgage loans, net
$
1,617,967
$
1,627,256
Secured term loan, net
401,540
401,515
Unsecured notes, net
3,308,276
3,305,467
Term loan facilities, net
3,215,993
3,211,814
Revolving facility
—
—
Accounts payable and accrued expenses
354,307
200,590
Resident security deposits
179,833
180,455
Other liabilities
94,818
103,435
Total liabilities
9,172,734
9,030,532
Equity:
Stockholders’ equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of June 30, 2024 and December 31, 2023
—
—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 612,594,044 and 611,958,239 outstanding as of June 30, 2024 and December 31, 2023, respectively
6,126
6,120
Additional paid-in capital
11,159,835
11,156,736
Accumulated deficit
(1,198,481)
(1,070,586)
Accumulated other comprehensive income
63,981
63,701
Total stockholders’ equity
10,031,461
10,155,971
Non-controlling interests
35,248
34,464
Total equity
10,066,709
10,190,435
Total liabilities and equity
$
19,239,443
$
19,220,967
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 9
Consolidated Statements of Operations
($ in thousands, except shares and per share amounts)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
(unaudited)
(unaudited)
(unaudited)
Revenues:
Rental revenues
$
576,865
$
543,185
$
1,148,295
$
1,078,402
Other property income
60,610
53,739
121,277
105,037
Management fee revenues
15,976
3,448
29,918
6,823
Total revenues
653,451
600,372
1,299,490
1,190,262
Expenses:
Property operating and maintenance
234,184
213,808
464,581
422,305
Property management expense
32,633
23,580
63,870
47,164
General and administrative
21,498
19,791
44,946
37,243
Interest expense
90,007
78,625
179,852
156,672
Depreciation and amortization
176,622
165,759
351,935
330,432
Impairment and other
10,353
1,868
14,490
3,031
Total expenses
565,297
503,431
1,119,674
996,847
Gains on investments in equity and other securities, net
1,504
524
1,295
612
Other, net
(54,012)
(3,941)
(48,039)
(5,435)
Gain on sale of property, net of tax
43,267
46,788
93,765
76,459
Losses from investments in unconsolidated joint ventures
(5,482)
(2,030)
(10,620)
(6,185)
Net income
73,431
138,282
216,217
258,866
Net income attributable to non-controlling interests
(243)
(418)
(679)
(760)
Net income attributable to common stockholders
73,188
137,864
215,538
258,106
Net income available to participating securities
(207)
(166)
(399)
(337)
Net income available to common stockholders — basic and diluted
$
72,981
$
137,698
$
215,139
$
257,769
Weighted average common shares outstanding — basic
612,628,758
611,954,347
612,424,139
611,772,406
Weighted average common shares outstanding — diluted
613,823,339
613,316,499
613,815,253
612,941,399
Net income per common share — basic
$
0.12
$
0.23
$
0.35
$
0.42
Net income per common share — diluted
$
0.12
$
0.22
$
0.35
$
0.42
Dividends declared per common share
$
0.28
$
0.26
$
0.56
$
0.52
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 10
Supplemental Schedule 1
Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)
FFO Reconciliation
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Net income available to common stockholders
$
72,981
$
137,698
$
215,139
$
257,769
Net income available to participating securities
207
166
399
337
Non-controlling interests
243
418
679
760
Depreciation and amortization on real estate assets
173,319
163,022
345,237
325,106
Impairment on depreciated real estate investments
—
81
60
259
Net gain on sale of previously depreciated investments in real estate
(43,267)
(46,788)
(93,765)
(76,459)
Depreciation and net gain on sale of investments in unconsolidated joint ventures
3,497
2,193
6,016
4,314
FFO
$
206,980
$
256,790
$
473,765
$
512,086
Core FFO Reconciliation
Q2 2024
Q2 2023
YTD 2024
YTD 2023
FFO
$
206,980
$
256,790
$
473,765
$
512,086
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1)
8,905
7,182
18,122
16,314
Share-based compensation expense
7,492
6,066
15,392
12,564
Legal settlements (2)
59,500
—
59,500
—
Severance expense
89
371
179
524
Casualty losses, net (1)
10,363
1,797
14,445
2,785
Gains on investments in equity and other securities, net
(1,504)
(524)
(1,295)
(612)
Core FFO
$
291,825
$
271,682
$
580,108
$
543,661
AFFO Reconciliation
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Core FFO
$
291,825
$
271,682
$
580,108
$
543,661
Recurring capital expenditures (1)
(46,635)
(36,400)
(83,757)
(73,693)
AFFO
$
245,190
$
235,282
$
496,351
$
469,968
Net income available to common stockholders
Weighted average common shares outstanding — diluted
613,823,339
613,316,499
613,815,253
612,941,399
Net income per common share — diluted
$
0.12
$
0.22
$
0.35
$
0.42
FFO, Core FFO, and AFFO
Weighted average common shares and OP Units outstanding — diluted
616,061,403
615,384,953
616,024,305
614,961,840
FFO per share — diluted
$
0.34
$
0.42
$
0.77
$
0.83
Core FFO per share — diluted
$
0.47
$
0.44
$
0.94
$
0.88
AFFO per share — diluted
$
0.40
$
0.38
$
0.81
$
0.76
(1)Includes the Company's share from unconsolidated joint ventures.
(2)Represents the Company’s accrued liability, as of June 30, 2024, for certain legal matters and, specifically, includes a $22 million accrual for the legal settlement that resolved the Company’s California qui tam dispute, inclusive of associated costs, as well as a $37.5 million accrual relating to the previously disclosed inquiry from the Federal Trade Commission, which remains ongoing.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 11
Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
Weighted Average Amounts for Net Income
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Common shares — basic
612,628,758
611,954,347
612,424,139
611,772,406
Shares potentially issuable from vesting/conversion of equity-based awards
1,194,581
1,362,152
1,391,114
1,168,993
Total common shares — diluted
613,823,339
613,316,499
613,815,253
612,941,399
Weighted average amounts for FFO, Core FFO, and AFFO
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Common shares — basic
612,628,758
611,954,347
612,424,139
611,772,406
OP units — basic
1,984,943
1,863,192
1,929,142
1,801,329
Shares potentially issuable from vesting/conversion of equity-based awards
1,447,702
1,567,414
1,671,024
1,388,105
Total common shares and units — diluted
616,061,403
615,384,953
616,024,305
614,961,840
Period end amounts for Core FFO and AFFO
June 30, 2024
Common shares
612,594,044
OP units
1,979,009
Shares potentially issuable from vesting/conversion of equity-based awards
1,708,693
Total common shares and units — diluted
616,281,746
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 12
Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — As of June 30, 2024
($ in thousands) (unaudited)
Wtd Avg
Wtd Avg
Interest
Years to
Debt Structure
Balance
% of Total
Rate (1)
Maturity (2)
Secured:
Fixed (3)
$
1,393,521
16.2
%
4.0
%
4.1
Floating — swapped to fixed
633,894
7.4
%
4.2
%
1.5
Floating
—
—
%
—
%
—
Total secured
2,027,415
23.6
%
4.1
%
3.3
Unsecured:
Fixed
3,350,000
38.9
%
3.4
%
7.2
Floating — swapped to fixed
3,186,106
37.0
%
4.0
%
2.3
Floating
38,894
0.5
%
6.7
%
5.0
Total unsecured
6,575,000
76.4
%
3.7
%
4.8
Total Debt:
Fixed + floating swapped to fixed (3)
8,563,521
99.5
%
3.8
%
4.5
Floating
38,894
0.5
%
6.7
%
5.0
Total debt
8,602,415
100.0
%
3.8
%
4.5
Discount/amortization on Note Payable
(20,059)
Deferred financing costs, net
(38,580)
Total debt per Balance Sheet
8,543,776
Retained and repurchased certificates
(87,262)
Cash, ex-security deposits and letters of credit (4)
(777,483)
Deferred financing costs, net
38,580
Unamortized discount on note payable
20,059
Net debt
$
7,737,670
Leverage Ratios
June 30, 2024
Net Debt / TTM Adjusted EBITDAre
5.3
x
Credit Ratings
Ratings
Outlook
Fitch Ratings
BBB
Positive
Moody's Investors Service
Baa2
Stable
S&P Global Ratings
BBB
Stable
Unsecured Facilities Covenant Compliance (5)
Unsecured Public Bond Covenant Compliance (6)
Actual
Requirement
Actual
Requirement
Total leverage ratio
29.5
%
≤ 60%
Aggregate debt ratio
36.4
%
≤ 65%
Secured leverage ratio
5.9
%
≤ 45%
Secured debt ratio
8.3
%
≤ 40%
Unencumbered leverage ratio
28.6
%
≤ 60%
Unencumbered assets ratio
303.5
%
≥ 150%
Fixed charge coverage ratio
4.2 x
≥ 1.5x
Debt service ratio
4.4x
≥ 1.5x
Unsecured interest coverage ratio
5.3 x
≥ 1.75x
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 13
Supplemental Schedule 2(b) (Continued)
(1)Includes the impact of interest rate swaps in place and effective as of June 30, 2024. 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.
Q2 2024 Earnings Release and Supplemental Information — page 14
Supplemental Schedule 2(c)
Debt Maturity Schedule — As of June 30, 2024
($ in thousands) (unaudited)
Revolving
Secured
Unsecured
Credit
% of
Debt Maturities, with Extensions (1)
Debt
Debt
Facility
Balance
Total
2024
$
—
$
—
$
—
$
—
—
%
2025
—
—
—
—
—
%
2026
633,894
2,500,000
—
3,133,894
36.4
%
2027
990,475
—
—
990,475
11.5
%
2028
—
750,000
—
750,000
8.7
%
2029
—
725,000
—
725,000
8.4
%
2030
—
450,000
—
450,000
5.2
%
2031
403,046
650,000
—
1,053,046
12.3
%
2032
—
600,000
—
600,000
7.0
%
2033
—
350,000
—
350,000
4.1
%
2034
—
400,000
—
400,000
4.7
%
2035
—
—
—
—
—
%
2036
—
150,000
—
150,000
1.7
%
2,027,415
6,575,000
—
8,602,415
100.0
%
Unamortized discount on note payable
(1,056)
(19,003)
—
(20,059)
Deferred financing costs, net
(6,852)
(31,728)
—
(38,580)
Total per Balance Sheet
$
2,019,507
$
6,524,269
$
—
$
8,543,776
.
(1)Assumes all extension options are exercised.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 15
Supplemental Schedule 3(a)
Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)
Number of Homes, period-end
Q2 2024
Total Portfolio
84,640
Same Store Portfolio
77,994
Same Store % of Total
92.1
%
Core Revenues
Q2 2024
Q2 2023
Change YoY
YTD 2024
YTD 2023
Change YoY
Total Portfolio
$
600,373
$
564,148
6.4
%
$
1,194,675
$
1,118,697
6.8
%
Same Store Portfolio
561,082
535,218
4.8
%
1,117,526
1,060,919
5.3
%
Core Operating Expenses
Q2 2024
Q2 2023
Change YoY
YTD 2024
YTD 2023
Change YoY
Total Portfolio
$
197,082
$
181,032
8.9
%
$
389,684
$
357,563
9.0
%
Same Store Portfolio
181,909
169,920
7.1
%
358,971
335,282
7.1
%
Net Operating Income
Q2 2024
Q2 2023
Change YoY
YTD 2024
YTD 2023
Change YoY
Total Portfolio
$
403,291
$
383,116
5.3
%
$
804,991
$
761,134
5.8
%
Same Store Portfolio
379,173
365,298
3.8
%
758,555
725,637
4.5
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 16
Supplemental Schedule 3(b)
Same Store Portfolio Core Operating Detail
($ in thousands) (unaudited)
Change
Change
Change
Q2 2024
Q2 2023
YoY
Q1 2024
Seq
YTD 2024
YTD 2023
YoY
Revenues:
Rental revenues (1)
$
539,383
$
515,414
4.7
%
$
535,271
0.8
%
$
1,074,654
$
1,022,900
5.1
%
Other property income, net (1)(2)
21,699
19,804
9.6
%
21,173
2.5
%
42,872
38,019
12.8
%
Core Revenues
561,082
535,218
4.8
%
556,444
0.8
%
1,117,526
1,060,919
5.3
%
Fixed Expenses:
Property taxes (3)
96,672
87,675
10.3
%
97,778
(1.1)
%
194,450
175,320
10.9
%
Insurance expenses
10,871
10,469
3.8
%
10,176
6.8
%
21,047
19,715
6.8
%
HOA expenses
10,090
10,470
(3.6)
%
11,258
(10.4)
%
21,348
20,266
5.3
%
Total Fixed Expenses
117,633
108,614
8.3
%
119,212
(1.3)
%
236,845
215,301
10.0
%
Controllable Expenses:
Repairs and maintenance, net (4)
26,915
21,660
24.3
%
21,177
27.1
%
48,092
43,299
11.1
%
Personnel, leasing and marketing
21,410
22,370
(4.3)
%
21,885
(2.2)
%
43,295
44,336
(2.3)
%
Turnover, net (4)
10,265
11,513
(10.8)
%
8,715
17.8
%
18,980
20,571
(7.7)
%
Utilities and property administrative, net (4)
5,686
5,763
(1.3)
%
6,073
(6.4)
%
11,759
11,775
(0.1)
%
Total Controllable Expenses
64,276
61,306
4.8
%
57,850
11.1
%
122,126
119,981
1.8
%
Core Operating Expenses
181,909
169,920
7.1
%
177,062
2.7
%
358,971
335,282
7.1
%
Net Operating Income
$
379,173
$
365,298
3.8
%
$
379,382
(0.1)
%
$
758,555
$
725,637
4.5
%
(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 Q2 2023 to Q2 2024.
(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 $34,389, $31,062, $34,840, $69,230, and $61,389 for Q2 2024, Q2 2023, Q1 2024, YTD 2024, and YTD 2023, respectively.
(3)As previously disclosed, due to the underaccrual of property taxes expense in the first three quarters of 2023, and the associated catch up in Q4 2023, the Company expects property taxes expense growth for the first three quarters of 2024 to be elevated, prior to a partial offset in Q4 2024 resulting in the Company’s expected guidance range for FY 2024 property taxes expense growth.
(4)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.
Q2 2024 Earnings Release and Supplemental Information — page 17
Supplemental Schedule 3(c)
Same Store Quarterly Operating Trends
(unaudited)
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Average Occupancy
97.5
%
97.8
%
97.2
%
97.0
%
97.6
%
Turnover Rate
6.3
%
5.1
%
5.5
%
6.8
%
6.8
%
Trailing four quarters Turnover Rate
23.7
%
24.2
%
24.2
%
N/A
N/A
Average Monthly Rent
$
2,386
$
2,362
$
2,348
$
2,323
$
2,290
Rental Rate Growth (lease-over-lease):
Renewals
5.6
%
5.8
%
6.7
%
6.4
%
6.8
%
New leases
3.6
%
0.8
%
(0.4)
%
4.6
%
6.7
%
Blended
5.0
%
4.4
%
4.3
%
5.9
%
6.8
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 18
Supplemental Schedule 4
Wholly Owned Portfolio Characteristics — As of and for the Quarter Ended June 30, 2024 (1)
(unaudited)
Number of Homes
Average Occupancy
Average Monthly Rent
Average Monthly Rent PSF
Percent of Revenue
Western United States:
Southern California
7,446
96.9
%
$
3,069
$
1.80
11.1
%
Northern California
4,258
97.9
%
2,714
1.72
5.8
%
Seattle
4,012
98.0
%
2,855
1.49
5.8
%
Phoenix
9,243
97.5
%
2,048
1.21
9.8
%
Las Vegas
3,415
97.3
%
2,181
1.11
3.8
%
Denver
2,569
97.9
%
2,525
1.37
3.3
%
Western US Subtotal
30,943
97.5
%
2,544
1.45
39.6
%
Florida:
South Florida
8,269
96.9
%
3,004
1.61
12.2
%
Tampa
9,302
95.0
%
2,287
1.21
10.6
%
Orlando
6,774
96.5
%
2,228
1.19
7.6
%
Jacksonville
1,995
97.3
%
2,171
1.09
2.2
%
Florida Subtotal
26,340
96.2
%
2,489
1.32
32.6
%
Southeast United States:
Atlanta
12,712
95.7
%
2,020
0.98
12.5
%
Carolinas
5,633
96.0
%
2,038
0.96
5.6
%
Southeast US Subtotal
18,345
95.8
%
2,025
0.97
18.1
%
Texas:
Houston
2,331
95.7
%
1,911
0.96
2.2
%
Dallas
3,037
95.9
%
2,242
1.09
3.4
%
Texas Subtotal
5,368
95.8
%
2,097
1.03
5.6
%
Midwest United States:
Chicago
2,484
97.3
%
2,369
1.48
2.8
%
Minneapolis
1,066
96.8
%
2,296
1.17
1.2
%
Midwest US Subtotal
3,550
97.1
%
2,347
1.37
4.0
%
Other (2):
94
49.5
%
2,528
1.20
0.1
%
Total / Average
84,640
96.6
%
$
2,379
$
1.26
100.0
%
Same Store Total / Average
77,994
97.5
%
$
2,386
$
1.27
93.4
%
(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; as of June 30, 2024, these include 68 homes located in Nashville, and 26 homes located in other markets that are generally being held for sale.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 19
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 2024
# Homes
Q2 2024
Q2 2023
Change
Q2 2024
Q2 2023
Change
Q2 2024
Q2 2023
Change
Western United States:
Southern California
7,175
$
3,072
$
2,942
4.4
%
98.1
%
97.8
%
0.3
%
$
65,843
$
61,440
7.2
%
Northern California
4,036
2,711
2,626
3.2
%
98.3
%
97.6
%
0.7
%
32,971
31,390
5.0
%
Seattle
3,812
2,867
2,767
3.6
%
98.3
%
98.1
%
0.2
%
33,059
31,465
5.1
%
Phoenix
8,465
2,035
1,965
3.6
%
97.7
%
97.6
%
0.1
%
52,925
51,062
3.6
%
Las Vegas
2,939
2,184
2,147
1.7
%
97.7
%
96.6
%
1.1
%
19,601
18,713
4.7
%
Denver
2,332
2,539
2,468
2.9
%
98.4
%
98.2
%
0.2
%
18,178
17,540
3.6
%
Western US Subtotal
28,759
2,556
2,468
3.6
%
98.0
%
97.7
%
0.3
%
222,577
211,610
5.2
%
Florida:
South Florida
7,864
3,018
2,848
6.0
%
97.4
%
97.9
%
(0.5)
%
71,237
67,538
5.5
%
Tampa
8,187
2,282
2,182
4.6
%
97.2
%
97.6
%
(0.4)
%
56,814
54,443
4.4
%
Orlando
6,242
2,227
2,132
4.5
%
97.2
%
97.9
%
(0.7)
%
42,384
40,823
3.8
%
Jacksonville
1,907
2,163
2,103
2.9
%
97.6
%
97.2
%
0.4
%
12,620
12,213
3.3
%
Florida Subtotal
24,200
2,498
2,380
5.0
%
97.3
%
97.7
%
(0.4)
%
183,055
175,017
4.6
%
Southeast United States:
Atlanta
11,934
2,015
1,927
4.6
%
96.8
%
97.0
%
(0.2)
%
71,304
67,718
5.3
%
Carolinas
5,206
2,036
1,958
4.0
%
97.5
%
97.6
%
(0.1)
%
32,086
30,568
5.0
%
Southeast US Subtotal
17,140
2,022
1,937
4.4
%
97.0
%
97.2
%
(0.2)
%
103,390
98,286
5.2
%
Texas:
Houston
1,842
1,871
1,811
3.3
%
97.5
%
97.4
%
0.1
%
10,482
10,198
2.8
%
Dallas
2,523
2,248
2,172
3.5
%
97.3
%
97.0
%
0.3
%
17,195
16,586
3.7
%
Texas Subtotal
4,365
2,089
2,020
3.4
%
97.4
%
97.2
%
0.2
%
27,677
26,784
3.3
%
Midwest United States:
Chicago
2,470
2,369
2,271
4.3
%
97.6
%
98.0
%
(0.4)
%
17,069
16,356
4.4
%
Minneapolis
1,060
2,297
2,225
3.2
%
97.2
%
97.6
%
(0.4)
%
7,314
7,165
2.1
%
Midwest US Subtotal
3,530
2,347
2,257
4.0
%
97.4
%
97.8
%
(0.4)
%
24,383
23,521
3.7
%
Total / Average
77,994
$
2,386
$
2,290
4.2
%
97.5
%
97.6
%
(0.1)
%
$
561,082
$
535,218
4.8
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 20
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 2024
# Homes
Q2 2024
Q1 2024
Change
Q2 2024
Q1 2024
Change
Q2 2024
Q1 2024
Change
Western United States:
Southern California
7,175
$
3,072
$
3,050
0.7
%
98.1
%
98.3
%
(0.2)
%
$
65,843
$
65,188
1.0
%
Northern California
4,036
2,711
2,684
1.0
%
98.3
%
98.3
%
—
%
32,971
32,527
1.4
%
Seattle
3,812
2,867
2,836
1.1
%
98.3
%
98.3
%
—
%
33,059
32,576
1.5
%
Phoenix
8,465
2,035
2,021
0.7
%
97.7
%
98.0
%
(0.3)
%
52,925
52,717
0.4
%
Las Vegas
2,939
2,184
2,175
0.4
%
97.7
%
97.9
%
(0.2)
%
19,601
19,499
0.5
%
Denver
2,332
2,539
2,521
0.7
%
98.4
%
98.2
%
0.2
%
18,178
17,971
1.2
%
Western US Subtotal
28,759
2,556
2,536
0.8
%
98.0
%
98.1
%
(0.1)
%
222,577
220,478
1.0
%
Florida:
South Florida
7,864
3,018
2,977
1.4
%
97.4
%
97.5
%
(0.1)
%
71,237
70,491
1.1
%
Tampa
8,187
2,282
2,258
1.1
%
97.2
%
97.6
%
(0.4)
%
56,814
56,521
0.5
%
Orlando
6,242
2,227
2,204
1.0
%
97.2
%
97.5
%
(0.3)
%
42,384
41,967
1.0
%
Jacksonville
1,907
2,163
2,145
0.8
%
97.6
%
97.7
%
(0.1)
%
12,620
12,529
0.7
%
Florida Subtotal
24,200
2,498
2,469
1.2
%
97.3
%
97.6
%
(0.3)
%
183,055
181,508
0.9
%
Southeast United States:
Atlanta
11,934
2,015
1,996
1.0
%
96.8
%
97.5
%
(0.7)
%
71,304
70,882
0.6
%
Carolinas
5,206
2,036
2,016
1.0
%
97.5
%
97.9
%
(0.4)
%
32,086
31,671
1.3
%
Southeast US Subtotal
17,140
2,022
2,002
1.0
%
97.0
%
97.6
%
(0.6)
%
103,390
102,553
0.8
%
Texas:
Houston
1,842
1,871
1,851
1.1
%
97.5
%
97.7
%
(0.2)
%
10,482
10,433
0.5
%
Dallas
2,523
2,248
2,229
0.9
%
97.3
%
97.7
%
(0.4)
%
17,195
17,120
0.4
%
Texas Subtotal
4,365
2,089
2,069
1.0
%
97.4
%
97.7
%
(0.3)
%
27,677
27,553
0.5
%
Midwest United States:
Chicago
2,470
2,369
2,342
1.2
%
97.6
%
98.1
%
(0.5)
%
17,069
17,089
(0.1)
%
Minneapolis
1,060
2,297
2,280
0.7
%
97.2
%
97.0
%
0.2
%
7,314
7,263
0.7
%
Midwest US Subtotal
3,530
2,347
2,323
1.0
%
97.4
%
97.7
%
(0.3)
%
24,383
24,352
0.1
%
Total / Average
77,994
$
2,386
$
2,362
1.0
%
97.5
%
97.8
%
(0.3)
%
$
561,082
$
556,444
0.8
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 21
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 2024
# Homes
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
Western United States:
Southern California
7,175
$
3,061
$
2,928
4.5
%
98.2
%
98.0
%
0.2
%
$
131,031
$
121,417
7.9
%
Northern California
4,036
2,697
2,617
3.1
%
98.3
%
97.8
%
0.5
%
65,498
62,274
5.2
%
Seattle
3,812
2,852
2,752
3.6
%
98.3
%
97.7
%
0.6
%
65,635
62,211
5.5
%
Phoenix
8,465
2,028
1,951
3.9
%
97.9
%
97.8
%
0.1
%
105,642
101,443
4.1
%
Las Vegas
2,939
2,180
2,140
1.9
%
97.8
%
96.6
%
1.2
%
39,100
36,900
6.0
%
Denver
2,332
2,530
2,453
3.1
%
98.3
%
97.8
%
0.5
%
36,149
34,841
3.8
%
Western US Subtotal
28,759
2,546
2,455
3.7
%
98.1
%
97.7
%
0.4
%
443,055
443055
419,086
5.7
%
Florida:
South Florida
7,864
2,997
2,821
6.2
%
97.5
%
97.9
%
(0.4)
%
141,728
133,642
6.1
%
Tampa
8,187
2,270
2,167
4.8
%
97.4
%
97.7
%
(0.3)
%
113,335
108,072
4.9
%
Orlando
6,242
2,216
2,116
4.7
%
97.3
%
98.0
%
(0.7)
%
84,351
81,141
4.0
%
Jacksonville
1,907
2,154
2,089
3.1
%
97.6
%
97.5
%
0.1
%
25,149
24,286
3.6
%
Florida Subtotal
24,200
2,483
2,360
5.2
%
97.4
%
97.9
%
(0.5)
%
364,563
347,141
5.0
%
Southeast United States:
Atlanta
11,934
2,006
1,915
4.8
%
97.1
%
97.2
%
(0.1)
%
142,186
134,210
5.9
%
Carolinas
5,206
2,026
1,945
4.2
%
97.7
%
97.9
%
(0.2)
%
63,757
60,714
5.0
%
Southeast US Subtotal
17,140
2,012
1,924
4.6
%
97.3
%
97.4
%
(0.1)
%
205,943
194,924
5.7
%
Texas:
Houston
1,842
1,861
1,802
3.3
%
97.6
%
97.3
%
0.3
%
20,915
20,162
3.7
%
Dallas
2,523
2,238
2,158
3.7
%
97.5
%
97.4
%
0.1
%
34,315
32,991
4.0
%
Texas Subtotal
4,365
2,079
2,008
3.5
%
97.5
%
97.4
%
0.1
%
55,230
53,153
3.9
%
Midwest United States:
Chicago
2,470
2,355
2,259
4.2
%
97.8
%
98.0
%
(0.2)
%
34,158
32,470
5.2
%
Minneapolis
1,060
2,289
2,213
3.4
%
97.1
%
97.1
%
—
%
14,577
14,145
3.1
%
Midwest US Subtotal
3,530
2,335
2,245
4.0
%
97.6
%
97.7
%
(0.1)
%
48,735
46,615
4.5
%
Total / Average
77,994
$
2,374
$
2,275
4.4
%
97.7
%
97.7
%
—
%
$
1,117,526
$
1,060,919
5.3
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 22
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 2024
Q2 2024
Q2 2023
Change
Q2 2024
Q2 2023
Change
Q2 2024
Q2 2023
Change
Q2 2024
Q2 2023
Western United States:
Southern California
$
65,843
$
61,440
7.2
%
$
18,721
$
17,766
5.4
%
$
47,122
$
43,674
7.9
%
71.6
%
71.1
%
Northern California
32,971
31,390
5.0
%
8,956
8,382
6.8
%
24,015
23,008
4.4
%
72.8
%
73.3
%
Seattle
33,059
31,465
5.1
%
8,413
8,296
1.4
%
24,646
23,169
6.4
%
74.6
%
73.6
%
Phoenix
52,925
51,062
3.6
%
10,254
9,797
4.7
%
42,671
41,265
3.4
%
80.6
%
80.8
%
Las Vegas
19,601
18,713
4.7
%
4,400
4,390
0.2
%
15,201
14,323
6.1
%
77.6
%
76.5
%
Denver
18,178
17,540
3.6
%
3,560
3,406
4.5
%
14,618
14,134
3.4
%
80.4
%
80.6
%
Western US Subtotal
222,577
211,610
5.2
%
54,304
52,037
4.4
%
168,273
159,573
5.5
%
75.6
%
75.4
%
Florida:
South Florida
71,237
67,538
5.5
%
28,776
25,635
12.3
%
42,461
41,903
1.3
%
59.6
%
62.0
%
Tampa
56,814
54,443
4.4
%
22,026
20,736
6.2
%
34,788
33,707
3.2
%
61.2
%
61.9
%
Orlando
42,384
40,823
3.8
%
15,820
13,917
13.7
%
26,564
26,906
(1.3)
%
62.7
%
65.9
%
Jacksonville
12,620
12,213
3.3
%
4,745
4,355
9.0
%
7,875
7,858
0.2
%
62.4
%
64.3
%
Florida Subtotal
183,055
175,017
4.6
%
71,367
64,643
10.4
%
111,688
110,374
1.2
%
61.0
%
63.1
%
Southeast United States:
Atlanta
71,304
67,718
5.3
%
24,775
23,557
5.2
%
46,529
44,161
5.4
%
65.3
%
65.2
%
Carolinas
32,086
30,568
5.0
%
9,029
8,106
11.4
%
23,057
22,462
2.6
%
71.9
%
73.5
%
Southeast US Subtotal
103,390
98,286
5.2
%
33,804
31,663
6.8
%
69,586
66,623
4.4
%
67.3
%
67.8
%
Texas:
Houston
10,482
10,198
2.8
%
5,117
4,957
3.2
%
5,365
5,241
2.4
%
51.2
%
51.4
%
Dallas
17,195
16,586
3.7
%
7,093
6,803
4.3
%
10,102
9,783
3.3
%
58.8
%
59.0
%
Texas Subtotal
27,677
26,784
3.3
%
12,210
11,760
3.8
%
15,467
15,024
2.9
%
55.9
%
56.1
%
Midwest United States:
Chicago
17,069
16,356
4.4
%
7,591
7,362
3.1
%
9,478
8,994
5.4
%
55.5
%
55.0
%
Minneapolis
7,314
7,165
2.1
%
2,633
2,455
7.3
%
4,681
4,710
(0.6)
%
64.0
%
65.7
%
Midwest US Subtotal
24,383
23,521
3.7
%
10,224
9,817
4.1
%
14,159
13,704
3.3
%
58.1
%
58.3
%
Same Store Total / Average
$
561,082
$
535,218
4.8
%
$
181,909
$
169,920
7.1
%
$
379,173
$
365,298
3.8
%
67.6
%
68.3
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 23
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 2024
Q2 2024
Q1 2024
Change
Q2 2024
Q1 2024
Change
Q2 2024
Q1 2024
Change
Q2 2024
Q1 2024
Western United States:
Southern California
$
65,843
$
65,188
1.0
%
$
18,721
$
18,352
2.0
%
$
47,122
$
46,836
0.6
%
71.6
%
71.8
%
Northern California
32,971
32,527
1.4
%
8,956
8,740
2.5
%
24,015
23,787
1.0
%
72.8
%
73.1
%
Seattle
33,059
32,576
1.5
%
8,413
8,301
1.3
%
24,646
24,275
1.5
%
74.6
%
74.5
%
Phoenix
52,925
52,717
0.4
%
10,254
9,624
6.5
%
42,671
43,093
(1.0)
%
80.6
%
81.7
%
Las Vegas
19,601
19,499
0.5
%
4,400
4,328
1.7
%
15,201
15,171
0.2
%
77.6
%
77.8
%
Denver
18,178
17,971
1.2
%
3,560
3,729
(4.5)
%
14,618
14,242
2.6
%
80.4
%
79.2
%
Western US Subtotal
222,577
220,478
1.0
%
54,304
53,074
2.3
%
168,273
167,404
0.5
%
75.6
%
75.9
%
Florida:
South Florida
71,237
70,491
1.1
%
28,776
28,405
1.3
%
42,461
42,086
0.9
%
59.6
%
59.7
%
Tampa
56,814
56,521
0.5
%
22,026
21,363
3.1
%
34,788
35,158
(1.1)
%
61.2
%
62.2
%
Orlando
42,384
41,967
1.0
%
15,820
14,915
6.1
%
26,564
27,052
(1.8)
%
62.7
%
64.5
%
Jacksonville
12,620
12,529
0.7
%
4,745
4,672
1.6
%
7,875
7,857
0.2
%
62.4
%
62.7
%
Florida Subtotal
183,055
181,508
0.9
%
71,367
69,355
2.9
%
111,688
112,153
(0.4)
%
61.0
%
61.8
%
Southeast United States:
Atlanta
71,304
70,882
0.6
%
24,775
23,449
5.7
%
46,529
47,433
(1.9)
%
65.3
%
66.9
%
Carolinas
32,086
31,671
1.3
%
9,029
8,847
2.1
%
23,057
22,824
1.0
%
71.9
%
72.1
%
Southeast US Subtotal
103,390
102,553
0.8
%
33,804
32,296
4.7
%
69,586
70,257
(1.0)
%
67.3
%
68.5
%
Texas:
Houston
10,482
10,433
0.5
%
5,117
4,982
2.7
%
5,365
5,451
(1.6)
%
51.2
%
52.2
%
Dallas
17,195
17,120
0.4
%
7,093
7,529
(5.8)
%
10,102
9,591
5.3
%
58.8
%
56.0
%
Texas Subtotal
27,677
27,553
0.5
%
12,210
12,511
(2.4)
%
15,467
15,042
2.8
%
55.9
%
54.6
%
Midwest United States:
Chicago
17,069
17,089
(0.1)
%
7,591
7,390
2.7
%
9,478
9,699
(2.3)
%
55.5
%
56.8
%
Minneapolis
7,314
7,263
0.7
%
2,633
2,436
8.1
%
4,681
4,827
(3.0)
%
64.0
%
66.5
%
Midwest US Subtotal
24,383
24,352
0.1
%
10,224
9,826
4.1
%
14,159
14,526
(2.5)
%
58.1
%
59.7
%
Same Store Total / Average
$
561,082
$
556,444
0.8
%
$
181,909
$
177,062
2.7
%
$
379,173
$
379,382
(0.1)
%
67.6
%
68.2
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 24
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 2024
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Western United States:
Southern California
$
131,031
$
121,417
7.9
%
$
37,073
$
35,001
5.9
%
$
93,958
$
86,416
8.7
%
71.7
%
71.2
%
Northern California
65,498
62,274
5.2
%
17,696
16,779
5.5
%
47,802
45,495
5.1
%
73.0
%
73.1
%
Seattle
65,635
62,211
5.5
%
16,714
16,818
(0.6)
%
48,921
45,393
7.8
%
74.5
%
73.0
%
Phoenix
105,642
101,443
4.1
%
19,878
19,543
1.7
%
85,764
81,900
4.7
%
81.2
%
80.7
%
Las Vegas
39,100
36,900
6.0
%
8,728
8,772
(0.5)
%
30,372
28,128
8.0
%
77.7
%
76.2
%
Denver
36,149
34,841
3.8
%
7,289
6,512
11.9
%
28,860
28,329
1.9
%
79.8
%
81.3
%
Western US Subtotal
443,055
419,086
5.7
%
107,378
103,425
3.8
%
335,677
315,661
6.3
%
75.8
%
75.3
%
Florida:
South Florida
141,728
133,642
6.1
%
57,181
50,896
12.3
%
84,547
82,746
2.2
%
59.7
%
61.9
%
Tampa
113,335
108,072
4.9
%
43,389
40,528
7.1
%
69,946
67,544
3.6
%
61.7
%
62.5
%
Orlando
84,351
81,141
4.0
%
30,735
27,374
12.3
%
53,616
53,767
(0.3)
%
63.6
%
66.3
%
Jacksonville
25,149
24,286
3.6
%
9,417
8,467
11.2
%
15,732
15,819
(0.5)
%
62.6
%
65.1
%
Florida Subtotal
364,563
347,141
5.0
%
140,722
127,265
10.6
%
223,841
219,876
1.8
%
61.4
%
63.3
%
Southeast United States:
Atlanta
142,186
134,210
5.9
%
48,224
45,444
6.1
%
93,962
88,766
5.9
%
66.1
%
66.1
%
Carolinas
63,757
60,714
5.0
%
17,876
16,201
10.3
%
45,881
44,513
3.1
%
72.0
%
73.3
%
Southeast US Subtotal
205,943
194,924
5.7
%
66,100
61,645
7.2
%
139,843
133,279
4.9
%
67.9
%
68.4
%
Texas:
Houston
20,915
20,162
3.7
%
10,099
10,040
0.6
%
10,816
10,122
6.9
%
51.7
%
50.2
%
Dallas
34,315
32,991
4.0
%
14,622
13,577
7.7
%
19,693
19,414
1.4
%
57.4
%
58.8
%
Texas Subtotal
55,230
53,153
3.9
%
24,721
23,617
4.7
%
30,509
29,536
3.3
%
55.2
%
55.6
%
Midwest United States:
Chicago
34,158
32,470
5.2
%
14,981
14,635
2.4
%
19,177
17,835
7.5
%
56.1
%
54.9
%
Minneapolis
14,577
14,145
3.1
%
5,069
4,695
8.0
%
9,508
9,450
0.6
%
65.2
%
66.8
%
Midwest US Subtotal
48,735
46,615
4.5
%
20,050
19,330
3.7
%
28,685
27,285
5.1
%
58.9
%
58.5
%
Same Store Total / Average
$
1,117,526
$
1,060,919
5.3
%
$
358,971
$
335,282
7.1
%
$
758,555
$
725,637
4.5
%
67.9
%
68.4
%
0.678780201294723
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 25
Supplemental Schedule 5(c)
Same Store Lease-Over-Lease Rent Growth
(unaudited)
Rental Rate Growth
Q2 2024
YTD 2024
Renewal
New
Blended
Renewal
New
Blended
Leases
Leases
Average
Leases
Leases
Average
Western United States:
Southern California
5.5
%
6.4
%
5.7
%
5.8
%
6.8
%
6.0
%
Northern California
4.8
%
4.8
%
4.8
%
4.9
%
2.9
%
4.4
%
Seattle
4.7
%
5.1
%
4.8
%
4.6
%
3.9
%
4.4
%
Phoenix
3.4
%
0.4
%
2.6
%
4.3
%
(0.8)
%
2.9
%
Las Vegas
3.9
%
1.8
%
3.4
%
3.6
%
(0.1)
%
2.6
%
Denver
3.7
%
4.7
%
4.0
%
3.6
%
3.2
%
3.5
%
Western US Subtotal
4.5
%
3.6
%
4.2
%
4.7
%
2.6
%
4.1
%
Florida:
South Florida
9.5
%
2.9
%
7.8
%
8.6
%
1.5
%
6.6
%
Tampa
5.0
%
2.2
%
4.1
%
5.8
%
1.3
%
4.4
%
Orlando
5.2
%
3.6
%
4.7
%
5.7
%
2.2
%
4.6
%
Jacksonville
4.3
%
1.7
%
3.5
%
4.7
%
0.5
%
3.5
%
Florida Subtotal
6.7
%
2.8
%
5.6
%
6.8
%
1.5
%
5.2
%
Southeast United States:
Atlanta
6.3
%
4.5
%
5.9
%
6.5
%
2.9
%
5.6
%
Carolinas
5.6
%
4.6
%
5.3
%
4.9
%
2.6
%
4.2
%
Southeast US Subtotal
6.1
%
4.5
%
5.7
%
6.0
%
2.8
%
5.2
%
Texas:
Houston
5.1
%
4.2
%
5.0
%
4.9
%
2.0
%
4.2
%
Dallas
5.4
%
1.8
%
4.5
%
5.6
%
1.6
%
4.5
%
Texas Subtotal
5.3
%
2.6
%
4.7
%
5.3
%
1.8
%
4.4
%
Midwest United States:
Chicago
5.2
%
8.8
%
6.0
%
5.0
%
6.3
%
5.3
%
Minneapolis
5.6
%
4.0
%
5.2
%
6.0
%
(1.2)
%
4.0
%
Midwest US Subtotal
5.3
%
7.2
%
5.7
%
5.3
%
3.5
%
4.9
%
Total / Average
5.6
%
3.6
%
5.0
%
5.7
%
2.3
%
4.7
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 26
Supplemental Schedule 6
Same Store Cost to Maintain, net (1)
($ in thousands, except per home amounts) (unaudited)
Total
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
R&M OpEx, net
$
26,915
$
21,177
$
22,754
$
27,609
$
21,660
Turn OpEx, net
10,265
8,715
9,962
12,266
11,513
Total recurring operating expenses, net
$
37,180
$
29,892
$
32,716
$
39,875
$
33,173
R&M CapEx
$
33,716
$
25,915
$
26,976
$
33,282
$
24,322
Turn CapEx
8,962
8,305
10,031
11,631
9,212
Total recurring capital expenditures
$
42,678
$
34,220
$
37,007
$
44,913
$
33,534
R&M OpEx, net + R&M CapEx
$
60,631
$
47,092
$
49,730
$
60,891
$
45,982
Turn OpEx, net + Turn CapEx
19,227
17,020
19,993
23,897
20,725
Total Cost to Maintain, net
$
79,858
$
64,112
$
69,723
$
84,788
$
66,707
Per Home
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Total Cost to Maintain, net
$
1,024
$
822
$
894
$
1,087
$
855
(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 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Recurring CapEx
$
46,371
$
36,923
$
40,080
$
48,765
$
36,173
Value Enhancing CapEx
12,500
7,300
12,148
14,381
12,875
Initial Renovation CapEx
6,392
7,698
9,656
11,744
4,356
Disposition CapEx
663
716
1,021
1,258
1,694
Total Capital Expenditures
$
65,926
$
52,637
$
62,905
$
76,148
$
55,098
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 27
Supplemental Schedule 7
Adjusted Property Management and G&A Reconciliation
($ in thousands) (unaudited)
Adjusted Property Management Expense
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Property management expense (GAAP)
$
32,633
$
23,580
$
63,870
$
47,164
Adjustments:
Share-based compensation expense
(1,674)
(1,442)
(3,272)
(3,402)
Adjusted property management expense
$
30,959
$
22,138
$
60,598
$
43,762
Adjusted G&A Expense
Q2 2024
Q2 2023
YTD 2024
YTD 2023
G&A expense (GAAP)
$
21,498
$
19,791
$
44,946
$
37,243
Adjustments:
Share-based compensation expense
(5,818)
(4,624)
(12,120)
(9,162)
Severance expense
(89)
(371)
(179)
(524)
Adjusted G&A expense
$
15,591
$
14,796
$
32,647
$
27,557
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 28
Supplemental Schedule 8(a)
Acquisitions and Dispositions
(unaudited)
March 31, 2024
Q2 2024 Acquisitions (1)
Q2 2024 Dispositions (2)
June 30, 2024
Homes
Homes
Avg. Est.
Homes
Average
Homes
Owned
Acq.
Cost Basis
Sold
Sales Price
Owned
Wholly Owned Portfolio
Western United States:
Southern California
7,488
18
$
537,926
60
$
663,573
7,446
Northern California
4,281
—
—
23
450,422
4,258
Seattle
4,027
—
—
15
569,233
4,012
Phoenix
9,233
12
389,952
2
314,000
9,243
Las Vegas
3,416
—
—
1
450,000
3,415
Denver
2,574
—
—
5
378,850
2,569
Western US Subtotal
31,019
30
478,736
106
581,932
30,943
Florida:
South Florida
8,251
56
247,543
38
449,850
8,269
Tampa
9,247
86
344,717
31
325,252
9,302
Orlando
6,739
41
351,658
6
318,000
6,774
Jacksonville
1,996
—
—
1
475,000
1,995
Florida Subtotal
26,233
183
316,536
76
388,949
26,340
Southeast United States:
Atlanta
12,712
26
333,013
26
301,196
12,712
Carolinas
5,509
127
330,496
3
315,300
5,633
Southeast US Subtotal
18,221
153
330,924
29
302,655
18,345
Texas:
Houston
2,340
—
—
9
236,193
2,331
Dallas
3,000
40
285,257
3
319,333
3,037
Texas Subtotal
5,340
40
285,257
12
261,135
5,368
Midwest United States:
Chicago
2,487
—
—
3
303,667
2,484
Minneapolis
1,070
—
—
4
259,864
1,066
Midwest US Subtotal
3,557
—
—
7
278,636
3,550
Other (3):
75
39
303,803
20
298,857
94
Total / Average
84,445
445
$
328,490
250
$
445,810
84,640
Joint Venture Portfolio
2020 Rockpoint JV (4)
2,608
—
$
—
1
$
469,900
2,607
2022 Rockpoint JV (5)
319
—
—
—
—
319
FNMA JV (6)
408
—
—
7
454,786
401
Pathway Homes (7)
509
57
341,789
8
350,979
558
Upward America JV (8)
3,720
—
—
—
—
3,720
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 29
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 2.2%. 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; as of June 30, 2024, these include 68 homes located in Nashville, and 26 homes located in other markets that are generally being held for sale.
(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 owns 100.0%.
(8)Represents portfolio owned by the Upward America JV, of which Invitation Homes owns 7.2%, beginning on the date of its investment on April 29, 2024.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 30
Supplemental Schedule 8(b)
Expected Acquisition Pipeline of New Homes from Homebuilders — As of June 30, 2024
(unaudited)
Pipeline as of June 30, 2024 (1)(2)
Estimated Deliveries in Q3-Q4 2024
Estimated Deliveries in 2025
Estimated Deliveries Thereafter
Avg. Estimated Cost Basis Per Home
Southern California
97
36
61
—
$
540,000
Phoenix
110
30
50
30
430,000
Tampa
340
82
104
154
320,000
Orlando
453
81
221
151
430,000
Jacksonville
250
—
40
210
270,000
Atlanta
116
28
42
46
340,000
Carolinas
463
206
225
32
330,000
South Florida
19
19
—
—
360,000
Houston
533
34
360
139
280,000
Dallas
246
119
127
—
260,000
Nashville
62
56
6
—
300,000
Total / Average
2,689
691
1,236
762
$
340,000
(1)Represents the number of new homes under contract as of June 30, 2024, that are expected to be built, sold and delivered to the Company by various homebuilders during a future period.
(2)Pipeline rollforward:
Pipeline as of March 31, 2024
1,970
Q2 2024 additions and cancellations (net)
1,093
Q2 2024 deliveries
(374)
Pipeline as of June 30, 2024
2,689
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 31
Glossary and Reconciliations
Average Estimated Cost Basis
Average estimated cost basis on acquisition represents the sum of purchase price, any closing adjustments, and estimated initial renovation expenditure for an acquired home or population of homes.
Average Monthly Rent
Average monthly rent represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period, and reflects the impact of non-service rental concessions and contractual rent increases amortized over the life of the lease.
Average Occupancy
Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period.
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 2024 Earnings Release and Supplemental Information — page 32
before the following items: share-based compensation expense; severance; casualty losses, net; (gains) losses on investments in equity securities, net; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of the Company's financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.
The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that the Company's basis for computing these non-GAAP measures is comparable with that of other companies. See below for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated joint ventures. The Company defines Core FFO as FFO adjusted for the following: non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives; share-based compensation expense; legal settlements; severance expense; casualty (gains) losses, net; and (gains) losses on investments in equity and other securities, net, as applicable. The Company defines Adjusted FFO as Core FFO less recurring capital expenditures that are necessary to help preserve the value, and maintain the functionality, of its homes. Where appropriate, FFO, Core FFO, and Adjusted FFO are adjusted for the Company’s share of investments in unconsolidated joint ventures.
The Company believes that FFO is a meaningful supplemental measure of the operating performance of its business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss. The Company believes that Core FFO and Adjusted FFO are also meaningful supplemental measures of its operating performance for the same reasons as FFO and are further helpful to investors as they provide a more consistent measurement of the Company’s performance across reporting periods by removing the impact of certain items that are not comparable from period to period.
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. FFO, Core FFO, and Adjusted FFO are not used as measures of the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's FFO, Core FFO, and Adjusted FFO may not be comparable to the FFO, Core FFO, and Adjusted FFO of other companies due to the fact that not all companies use the same definition of FFO, Core FFO, and Adjusted FFO. Accordingly, there can be no assurance that the Company's basis for computing these non-GAAP measures is comparable with that of other companies. See “Reconciliation of FFO, Core FFO, and Adjusted FFO” for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.
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.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 33
The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that the Company's basis for computing this non-GAAP measure is comparable with that of other companies.
The Company believes that Same Store NOI is also a meaningful supplemental measure of the Company's operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of the Company's performance across reporting periods by reflecting NOI for homes in its Same Store Portfolio.
See below for a reconciliation of GAAP net income to NOI for the Company's total portfolio and NOI for its Same Store Portfolio.
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.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 34
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 2024 Earnings Release and Supplemental Information — page 35
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, 2023, 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, 2023, 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 2024 Earnings Release and Supplemental Information — page 36
Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Total revenues (Total Portfolio)
$
653,451
$
646,039
$
624,321
$
617,695
$
600,372
Management fee revenues
(15,976)
(13,942)
(3,420)
(3,404)
(3,448)
Total portfolio resident recoveries
(37,102)
(37,795)
(35,050)
(36,641)
(32,776)
Total Core Revenues (Total Portfolio)
600,373
594,302
585,851
577,650
564,148
Non-Same Store Core Revenues
(39,291)
(37,858)
(37,267)
(36,337)
(28,930)
Same Store Core Revenues
$
561,082
$
556,444
$
548,584
$
541,313
$
535,218
Reconciliation of Total Revenues to Same Store Core Revenues, YTD
(in thousands) (unaudited)
YTD 2024
YTD 2023
Total revenues (Total Portfolio)
$
1,299,490
$
1,190,262
Management fee revenues
(29,918)
(6,823)
Total portfolio resident recoveries
(74,897)
(64,742)
Total Core Revenues (Total Portfolio)
1,194,675
1,118,697
Non-Same Store Core Revenues
(77,149)
(57,778)
Same Store Core Revenues
$
1,117,526
$
1,060,919
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Property operating and maintenance expenses (Total Portfolio)
$
234,184
$
230,397
$
228,542
$
229,488
$
213,808
Total Portfolio resident recoveries
(37,102)
(37,795)
(35,050)
(36,641)
(32,776)
Core Operating Expenses (Total Portfolio)
197,082
192,602
193,492
192,847
181,032
Non-Same Store Core Operating Expenses
(15,173)
(15,540)
(15,103)
(14,458)
(11,112)
Same Store Core Operating Expenses
$
181,909
$
177,062
$
178,389
$
178,389
$
169,920
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, YTD
(in thousands) (unaudited)
YTD 2024
YTD 2023
Property operating and maintenance expenses (Total Portfolio)
$
464,581
$
422,305
Total Portfolio resident recoveries
(74,897)
(64,742)
Core Operating Expenses (Total Portfolio)
389,684
357,563
Non-Same Store Core Operating Expenses
(30,713)
(22,281)
Same Store Core Operating Expenses
$
358,971
$
335,282
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 37
Reconciliation of Net Income to Same Store NOI, Quarterly
(in thousands) (unaudited)
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Net income available to common stockholders
$
72,981
$
142,158
$
129,368
$
131,637
$
137,698
Net income available to participating securities
207
192
178
181
166
Non-controlling interests
243
436
395
403
418
Interest expense
90,007
89,845
90,049
86,736
78,625
Depreciation and amortization
176,622
175,313
173,159
170,696
165,759
Property management expense
32,633
31,237
25,246
23,399
23,580
General and administrative
21,498
23,448
22,387
22,714
19,791
Impairment and other
10,353
4,137
3,069
2,496
1,868
Gain on sale of property, net of tax
(43,267)
(50,498)
(49,092)
(57,989)
(46,788)
(Gains) losses on investments in equity securities, net
(1,504)
209
(237)
499
(524)
Other, net (1)
54,012
(5,973)
(5,533)
2,533
3,941
Management fee revenues
(15,976)
(13,942)
(3,420)
(3,404)
(3,448)
Losses from investments in unconsolidated joint ventures
5,482
5,138
6,790
4,902
2,030
NOI (Total Portfolio)
403,291
401,700
392,359
384,803
383,116
Non-Same Store NOI
(24,118)
(22,318)
(22,164)
(21,879)
(17,818)
Same Store NOI
$
379,173
$
379,382
$
370,195
$
362,924
$
365,298
Reconciliation of Net Income to Same Store NOI, YTD
(in thousands) (unaudited)
YTD 2024
YTD 2023
Net income available to common stockholders
$
215,139
$
257,769
Net income available to participating securities
399
337
Non-controlling interests
679
760
Interest expense
179,852
156,672
Depreciation and amortization
351,935
330,432
Property management expense
63,870
47,164
General and administrative
44,946
37,243
Impairment and other
14,490
3,031
Gain on sale of property, net of tax
(93,765)
(76,459)
(Gains) losses on investments in equity securities, net
(1,295)
(612)
Other, net (1)
48,039
5,435
Management fee revenues
(29,918)
(6,823)
Losses from investments in unconsolidated joint ventures
10,620
6,185
NOI (Total Portfolio)
804,991
761,134
Non-Same Store NOI
(46,436)
(35,497)
Same Store NOI
$
758,555
$
725,637
(1)Includes settlement and other costs related to certain litigation and regulatory matters, 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 2024 Earnings Release and Supplemental Information — page 38
Reconciliation of Net Income to Adjusted EBITDAre
(in thousands, unaudited)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Net income available to common stockholders
$
72,981
$
137,698
$
215,139
$
257,769
Net income available to participating securities
207
166
399
337
Non-controlling interests
243
418
679
760
Interest expense
90,007
78,625
179,852
156,672
Interest expense in unconsolidated joint ventures
5,549
3,145
10,784
7,723
Depreciation and amortization
176,622
165,759
351,935
330,432
Depreciation and amortization of investments in unconsolidated joint ventures
3,358
2,521
6,285
4,996
EBITDA
348,967
388,332
765,073
758,689
Gain on sale of property, net of tax
(43,267)
(46,788)
(93,765)
(76,459)
Impairment on depreciated real estate investments
—
81
60
259
Net (gain) loss on sale of investments in unconsolidated joint ventures
167
(304)
(214)
(634)
EBITDAre
305,867
341,321
671,154
681,855
Share-based compensation expense
7,492
6,066
15,392
12,564
Severance
89
371
179
524
Casualty losses, net (1)
10,363
1,797
14,445
2,785
Gains on investments in equity and other securities, net
(1,504)
(524)
(1,295)
(612)
Other, net (2)
54,012
3,941
48,039
5,435
Adjusted EBITDAre
$
376,319
$
352,972
$
747,914
$
702,551
Trailing Twelve Months (TTM) Ended
June 30, 2024
December 31, 2023
Net income available to common stockholders
$
476,144
$
518,774
Net income available to participating securities
758
696
Non-controlling interests
1,477
1,558
Interest expense
356,637
333,457
Interest expense in unconsolidated joint ventures
21,316
18,255
Depreciation and amortization
695,790
674,287
Depreciation and amortization of investments in unconsolidated joint ventures
11,758
10,469
EBITDA
1,563,880
1,557,496
Gain on sale of property, net of tax
(200,846)
(183,540)
Impairment on depreciated real estate investments
228
427
Net gain on sale of investments in unconsolidated joint ventures
(1,248)
(1,668)
EBITDAre
1,362,014
1,372,715
Share-based compensation expense
32,331
29,503
Severance
632
977
Casualty losses, net (1)
19,860
8,200
Gains on investments in equity and other securities, net
(1,033)
(350)
Other, net (2)
45,039
2,435
Adjusted EBITDAre
$
1,458,843
$
1,413,480
(1)Includes the Company's share from unconsolidated joint ventures.
(2)Includes settlement and other costs related to certain litigation and regulatory matters, 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 2024 Earnings Release and Supplemental Information — page 39
Reconciliation of Net Debt / Trailing Twelve Months (TTM) Adjusted EBITDAre
(in thousands, except for ratio) (unaudited)
As of
As of
June 30, 2024
December 31, 2023
Mortgage loans, net
$
1,617,967
$
1,627,256
Secured term loan, net
401,540
401,515
Unsecured notes, net
3,308,276
3,305,467
Term loan facility, net
3,215,993
3,211,814
Revolving facility
—
—
Total Debt per Balance Sheet
8,543,776
8,546,052
Retained and repurchased certificates
(87,262)
(87,703)
Cash, ex-security deposits and letters of credit (1)
(777,483)
(713,898)
Deferred financing costs, net
38,580
45,518
Unamortized discounts on note payable
20,059
21,376
Net Debt (A)
$
7,737,670
$
7,811,345
For the TTM Ended
For the TTM Ended
June 30, 2024
December 31, 2023
Adjusted EBITDAre (B)
$
1,458,843
$
1,413,480
Net Debt / TTM Adjusted EBITDAre (A / B)
5.3
x
5.5
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 2024
Q2 2023
YTD 2024
YTD 2023
Amortization of discounts on notes payable
$
657
$
403
$
1,317
$
803
Amortization of deferred financing costs
4,200
3,961
8,400
7,872
Change in fair value of interest rate derivatives
—
55
1
40
Amortization of swap fair value at designation
2,321
2,320
4,642
4,630
Company's share from unconsolidated joint ventures
1,727
443
3,762
2,969
Total non-cash interest expense
$
8,905
$
7,182
$
18,122
$
16,314
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2024 Earnings Release and Supplemental Information — page 40
