Press Release

Invitation Homes Reports Second Quarter 2020 Results

Company Release - 8/3/2020 4:15 PM ET

DALLAS--(BUSINESS WIRE)-- Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), the nation's premier single-family home leasing company, today announced its second quarter 2020 financial and operating results.

Second Quarter 2020 Highlights

  • Year over year, total revenues increased 1.9% to $450 million, total property operating and maintenance expenses increased 0.3% to $167 million, net income attributable to common stockholders increased 10.2% to $43 million, and net income per diluted common share increased 5.4% to $0.08.
  • Year over year, Core FFO per share increased 4.4% to $0.32, and AFFO per share increased 9.4% to $0.27.
  • Same Store NOI grew 2.3% year over year on 2.0% Same Store Core revenue growth and 1.3% Same Store Core operating expense growth.
  • Same Store average occupancy was 97.5%, up 100 basis points year over year.
  • Same Store renewal rent growth of 3.5% and Same Store new lease rent growth of 2.7% drove Same Store blended rent growth of 3.3%.
  • The Company resumed sourcing acquisitions in June after pausing activity from mid-March through May.
  • The Company issued and sold 16,690,400 shares of common stock during the quarter for net proceeds of $448 million. $150 million of the proceeds were used to fully repay the balance outstanding on the Company's revolving line of credit, and remaining proceeds are expected to be used primarily for acquisitions.

COVID-19 Update

With the safety and wellbeing of residents and associates its highest priority, the Company continues to follow protocols that enable teams to safely continue providing outstanding service to residents. Updates related to safety and service include:

  • The Company created and implemented a safety training program for all associates, and is maintaining a three-month supply of masks, gloves, shoe covers, and hand sanitizer for field teams.
  • Self-show and virtual-tour technology continue to be leveraged as both safety measures and competitive advantages.
  • Following strict safety protocols, the Company resumed providing non-emergency maintenance service to residents as appropriate on a case-by-case basis beginning in June. "ProCare" proactive resident care visits remain on pause.
  • The Company has adapted to offer virtual options for resident move-in orientations and pre-move-out visits.

Key updates to financial performance, operating results, and liquidity amid the pandemic include:

  • Resident satisfactions survey scores continue to climb as the Company further refines its COVID-19 response.
  • Same Store average occupancy has continued to climb through the summer, reaching a record-high 97.8% in July, up 170 basis points year over year. Same Store new lease rent growth accelerated over the course of Q2 2020 and averaged 4.9% in July.
  • As of June 30, 2020, total liquidity from unrestricted cash and undrawn credit facility capacity was $1,572 million.
  • Revenue collections strengthened over the course of Q2 2020, as detailed in the following table.

Revenue Collections Update

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April

2020

 

May

2020

 

June

2020

 

July

2020

 

Cumulative

 

Revenue collections % of month's billings: (1)

 

 

 

 

 

 

 

 

 

 

 

July billings collected

 

%

 

%

 

%

 

92

%

 

92

%

 

June billings collected

 

%

 

%

 

92

%

 

4

%

 

96

%

 

May billings collected

 

%

 

92

%

 

4

%

 

1

%

 

97

%

 

April billings collected

 

92

%

 

4

%

 

1

%

 

*

 

98

%

 

March billings collected

 

2

%

 

%

 

%

 

%

 

 

 

Total collected

 

94

%

 

96

%

 

97

%

 

97

%

 

 

 

Total collected % of historical avg collected (2)

 

95

%

 

97

%

 

98

%

 

98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes both rental revenues and other property income. Rent is considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. Security deposits retained to offset rents due are not included as revenue collected. See "Same Store Operating Results Snapshot," footnote (1), for detail on the Company's bad debt policy.

(2)

Over the historical period from October 2019 to March 2020, monthly revenue collections have totaled 99% of monthly billings on average, with 96% on average attributable to collection of current month billings and 3% on average attributable to collection of prior month billings.

*

Denotes collection of billings between 0% and 0.5%.

As a result of the favorable liquidity and performance trends described above, management deemed it appropriate to resume deploying capital strategically to generate incremental value for shareholders, and took the following actions during the quarter:

  • Successfully issued and sold $448 million of common shares to provide capital primarily for acquisition opportunities.
  • Fully repaid the $270 million revolving credit facility balance that had been drawn in March.
  • Resumed sourcing new acquisitions in June, returning to an acquisition pace similar to pre-COVID-19 levels.

President & Chief Executive Officer Dallas Tanner comments: "The resilience of our business and the agility of our team and platform continue to serve us well as the COVID-19 pandemic evolves. I could not be prouder of the genuine care our associates in each market continue to provide, which has been reflected in rising resident satisfaction scores. Simply put, the pandemic has not slowed us down in living up to our mission statement, 'Together with you, we make a house a home.'

"Demand for our homes is as strong as it has ever been, with summer occupancy at record highs. We have successfully adapted to meet this demand and deliver exceptional service in a way that continues to prioritize health and safety above all else. We have also continued to achieve strong rent collection from our mature, stable resident base, with collections in June and July near historical average levels. This combination of strong demand and outstanding execution helped drive a year-over-year increase in AFFO per share of over 9% in the second quarter.

"This result would not have been possible without the differentiated locations of our homes, the scale of our portfolio in each market, and our local approach to asset management and resident service that enhances control over the resident experience. We believe these differentiators also position us optimally to capitalize on long-term growth fundamentals. We see a significant pipeline of demand in the millennial generation moving toward single-family rental over the next decade, and the ripple-effects of COVID-19 may further intensify preferences for single-family space over denser housing options. On top of organic growth, we see a compelling opportunity for long-term external growth, and we resumed placing acquisitions under contract in June.

"As disciplined investors and operators, we will continue to grow toward a bright future at the same time we stay nimble in the present to safely provide high-quality homes and genuine care to our residents and communities in this time of need."

Financial Results

Net Income, FFO, Core FFO, and AFFO Per Share — Diluted

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2020

 

Q2 2019

 

YTD 2020

 

YTD 2019

 

Net income (1)

 

$

0.08

 

 

$

0.07

 

 

$

0.17

 

 

$

0.11

 

 

FFO (1)

 

0.30

 

 

0.28

 

 

0.62

 

 

0.54

 

 

Core FFO (2)

 

0.32

 

 

0.31

 

 

0.66

 

 

0.64

 

 

AFFO (2)

 

0.27

 

 

0.25

 

 

0.57

 

 

0.53

 

 

 

 

 

 

 

 

 

 

 

 

(1)

In accordance with GAAP and Nareit guidelines, net income per share and FFO per share are calculated as if the 3.0% Convertible Notes due July 1, 2019 (the "2019 Convertible Notes") were converted to common shares at the beginning of each relevant period in 2019, and as if the 3.5% Convertible Notes due January 15, 2022 (the "2022 Convertible Notes") were converted to common shares at the beginning of each relevant period in 2019 and 2020, unless such treatment is anti-dilutive to net income per share or FFO per share. See "Reconciliation of FFO, Core FFO, and AFFO," footnote (1), for more detail on the treatment of convertible notes in each specific period presented in the table.

(2)

Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period. See "Reconciliation of FFO, Core FFO, and AFFO," footnote (2), for more detail on the treatment of convertible notes in each specific period presented in the table.

Net Income

Net income per share in the second quarter of 2020 was $0.08, compared to net income per share of $0.07 in the second quarter of 2019. Total revenues and total property operating and maintenance expenses in the second quarter of 2020 were $450 million and $167 million, respectively, compared to $442 million and $167 million, respectively, in the second quarter of 2019.

Net income per share in YTD 2020 was $0.17, compared to net income per share of $0.11 in YTD 2019. Total revenues and total property operating and maintenance expenses in YTD 2020 were $900 million and $334 million, respectively, compared to $877 million and $327 million, respectively, in YTD 2019.

Core FFO

Year over year, Core FFO per share in the second quarter of 2020 increased 4.4% to $0.32, primarily due to growth in Same Store NOI.

Year over year, Core FFO per share in YTD 2020 increased 4.5% to $0.66, primarily due to growth in Same Store NOI.

AFFO

Year over year, AFFO per share in the second quarter of 2020 increased 9.4% to $0.27, primarily due to the increase in Core FFO per share described above and lower recurring capital expenditures.

Year over year, AFFO per share in YTD 2020 increased 7.2% to $0.57, primarily due to the increase in Core FFO per share described above and lower recurring capital expenditures.

Operating Results

Same Store Operating Results Snapshot

 

 

 

 

 

 

 

 

 

 

Number of homes in Same Store portfolio:

 

72,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2020

 

Q2 2019

 

YTD 2020

 

YTD 2019

 

Core revenue growth (year-over-year)

 

2.0

%

 

 

 

3.2

%

 

 

 

Core operating expense growth (year-over-year)

 

1.3

%

 

 

 

3.3

%

 

 

 

NOI growth (year-over-year)

 

2.3

%

 

 

 

3.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Average occupancy

 

97.5

%

 

96.5

%

 

97.1

%

 

96.5

%

 

Bad debt % of gross rental revenues (1)

 

1.9

%

 

0.4

%

 

1.1

%

 

0.4

%

 

Turnover rate

 

6.9

%

 

8.2

%

 

13.2

%

 

14.5

%

 

 

 

 

 

 

 

 

 

 

 

Rental rate growth (lease-over-lease):

 

 

 

 

 

 

 

 

 

Renewals

 

3.5

%

 

5.3

%

 

3.9

%

 

5.3

%

 

New leases

 

2.7

%

 

5.2

%

 

2.3

%

 

4.6

%

 

Blended

 

3.3

%

 

5.3

%

 

3.4

%

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

(1)

Invitation Homes reserves residents' accounts receivables balances that are aged greater than 30 days as bad debt, under the rationale that a resident's security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident's security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. All rental revenues and other property income, in both total portfolio and Same Store portfolio presentations, are reflected net of bad debt.

Same Store NOI

For the Same Store portfolio of 72,261 homes, second quarter 2020 Same Store NOI increased 2.3% year over year on Same Store Core revenue growth of 2.0% and Same Store Core operating expense growth of 1.3%.

YTD 2020 Same Store NOI increased 3.2% year over year on Same Store Core revenue growth of 3.2% and Same Store Core operating expense growth of 3.3%.

Same Store Core Revenues

Second quarter 2020 Same Store Core revenue growth of 2.0% year over year was driven by a 3.7% increase in average monthly rent and a 100 basis point increase in average occupancy to 97.5%. As a result of the increases in average monthly rent and average occupancy, Same Store rental revenues increased 4.7% year over year on a gross basis before bad debt. With respect to Same Store Core revenue growth, two factors related to COVID-19 partially offset the favorable increases in average rent and average occupancy: 1) an increase in bad debt from 0.4% of gross rental revenues in Q2 2019 to 1.9% of gross rental revenues in Q2 2020, which was a 155 basis point drag on Same Store Core revenue growth, all else equal; and 2) a 31.6% decrease in other property income, net of resident recoveries, which was a 107 basis point drag on Same Store Core revenue growth, all else equal, due primarily to non-enforcement of almost all late fees in the quarter.

YTD 2020 Same Store Core revenue growth of 3.2% year over year was driven by a 3.8% increase in average monthly rent and a 60 basis point increase in average occupancy to 97.1%, partially offset by the impact of COVID-19 on bad debt and other property income described above.

Same Store Core Operating Expenses

Second quarter 2020 Same Store Core operating expenses increased 1.3% year over year. Same Store controllable expenses, net of resident recoveries, decreased 4.2% year over year. Offsetting the improvement in controllable expenses was a 4.8% increase in fixed expenses, net of resident recoveries, driven primarily by higher property taxes.

YTD 2020 Same Store Core operating expenses increased 3.3% year over year, primarily due to higher property taxes.

Investment Management Activity

Invitation Homes resumed sourcing new acquisitions in June, after pausing activity from mid-March through May. Leveraging the advantages of its in-house local investment teams in conjunction with proprietary "AcquisitionIQ" technology, the Company has been successful in sourcing compelling investment opportunities despite tight inventory levels, and has been able to quickly ramp buying up to a pace similar to that at which it had been buying prior to the COVID-19 pandemic.

In the second quarter of 2020, Invitation Homes acquired 147 homes for $46 million, including estimated renovation costs, primarily in transactions that were placed under contract prior to the start of the second quarter. The Company has continued to sell homes in accordance with its 2020 disposition plan, and closed the sale of 416 homes for gross proceeds of $114 million in the second quarter of 2020.

Year to date, through June 30, 2020, the Company closed on the acquisition of 651 homes for $200 million, including estimated renovation costs, and sold 900 homes for gross proceeds of $246 million, resulting in a total portfolio home count of 79,256 homes as of June 30, 2020.

Balance Sheet and Capital Markets Activity

As of June 30, 2020, the Company had $1,572 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility, and maintained considerable cushion with respect to the facility's covenants. The Company's total indebtedness as of June 30, 2020 was $8,386 million, consisting of $6,541 million of secured debt and $1,845 million of unsecured debt.

The Company has no debt reaching final maturity before 2022, and weighted average years to maturity was 4.5 years as of June 30, 2020. 51% of the Company's homes were unencumbered at June 30, 2020, and net debt / TTM Adjusted EBITDAre at June 30, 2020 was 7.4x, down from 8.1x at December 31, 2019.

In the second quarter of 2020, the Company issued and sold 16,690,400 shares of common stock for net proceeds of $448 million. Of the shares issued during the quarter, 16,675,000 were sold through a public offering in June, and 15,400 were sold under the Company's at-the-market equity agreement ("ATM Equity Program"). $686 million of gross capacity remained under the ATM Equity Program as of June 30, 2020. A portion of the proceeds from equity issuance were used to fully repay the balance outstanding on the Company's revolving line of credit, as described below, and remaining proceeds are expected to be used primarily for acquisitions.

As previously announced, in May 2020, the Company used cash on hand to repay $120 million of the $270 million revolving credit facility balance that had previously been outstanding. In June 2020, the Company used proceeds from its June equity issuance to repay the remaining $150 million balance, effectively eliminating all borrowings under the revolving credit facility.

Dividend

As previously announced on July 24, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock. The dividend will be paid on or before August 28, 2020 to stockholders of record as of the close of business on August 12, 2020.

Earnings Conference Call Information

Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on August 4, 2020 to discuss results for the second quarter of 2020. The domestic dial-in number is 1-888-317-6003, and the international dial-in number is 1-412-317-6061. The passcode is 2766358. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through September 4, 2020 and can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using the replay passcode 10146067, or by using the link at www.invh.com.

Supplemental Information

The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes' Investor Relations website at www.invh.com.

Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures

Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States ("GAAP"). These measures are defined in the Glossary and Reconciliations section of this press release and in the Supplemental Information and, as applicable, reconciled to the most comparable GAAP measures.

About Invitation Homes

Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

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 (“HOA”) and insurance costs, the Company's dependence on third parties for key services, risks related to the evaluation of properties, poor resident selection and defaults and non-renewals by the Company's residents, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of the ongoing COVID-19 pandemic, on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Moreover, many of these factors have been heightened as a result of the ongoing and numerous adverse impacts of COVID-19. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and in the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC’s website at http://www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

 

Consolidated Balance Sheets

($ in thousands, except shares and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

2020

 

2019

 

 

 

(unaudited)

 

 

 

Assets:

 

 

 

 

 

Investments in single-family residential properties, net

 

$

16,117,737

 

 

$

16,243,192

 

 

Cash and cash equivalents

 

571,719

 

 

92,258

 

 

Restricted cash

 

223,894

 

 

193,987

 

 

Goodwill

 

258,207

 

 

258,207

 

 

Other assets, net

 

574,759

 

 

605,266

 

 

Total assets

 

$

17,746,316

 

 

$

17,392,910

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Mortgage loans, net

 

$

6,118,575

 

 

$

6,238,461

 

 

Secured term loan, net

 

400,986

 

 

400,978

 

 

Term loan facility, net

 

1,495,191

 

 

1,493,747

 

 

Revolving facility

 

 

 

 

 

Convertible senior notes, net

 

336,820

 

 

334,299

 

 

Accounts payable and accrued expenses

 

190,344

 

 

186,110

 

 

Resident security deposits

 

154,200

 

 

147,787

 

 

Other liabilities

 

706,327

 

 

325,450

 

 

Total liabilities

 

9,402,443

 

 

9,126,832

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of June 30, 2020 and December 31, 2019

 

 

 

 

 

Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 560,532,679 and 541,642,725 outstanding as of June 30, 2020 and December 31, 2019, respectively

 

5,605

 

 

5,416

 

 

Additional paid-in capital

 

9,515,625

 

 

9,010,194

 

 

Accumulated deficit

 

(595,318

)

 

(524,588

)

 

Accumulated other comprehensive loss

 

(632,148

)

 

(276,600

)

 

Total stockholders' equity

 

8,293,764

 

 

8,214,422

 

 

Non-controlling interests

 

50,109

 

 

51,656

 

 

Total equity

 

8,343,873

 

 

8,266,078

 

 

Total liabilities and equity

 

$

17,746,316

 

 

$

17,392,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

($ in thousands, except shares and per share amounts) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2020

 

Q2 2019

 

YTD 2020

 

YTD 2019

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

419,201

 

 

$

408,755

 

 

$

833,667

 

 

$

814,270

 

 

Other property income

 

30,554

 

 

32,827

 

 

65,877

 

 

62,812

 

 

Rental revenues and other property income

 

449,755

 

 

$

441,582

 

 

899,544

 

 

877,082

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Property operating and maintenance

 

167,002

 

 

166,574

 

 

333,918

 

 

326,920

 

 

Property management expense

 

14,529

 

 

16,021

 

 

28,901

 

 

31,181

 

 

General and administrative

 

14,426

 

 

15,956

 

 

28,654

 

 

42,494

 

 

Interest expense

 

86,071

 

 

95,706

 

 

170,828

 

 

189,689

 

 

Depreciation and amortization

 

137,266

 

 

133,031

 

 

272,293

 

 

266,640

 

 

Impairment and other

 

(180

)

 

1,671

 

 

2,947

 

 

7,063

 

 

Total expenses

 

419,114

 

 

428,959

 

 

837,541

 

 

863,987

 

 

 

 

 

 

 

 

 

 

 

 

Other, net

 

1,370

 

 

610

 

 

5,084

 

 

3,735

 

 

Gain on sale of property, net of tax

 

11,167

 

 

26,172

 

 

26,367

 

 

43,744

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

43,178

 

 

39,405

 

 

93,454

 

 

60,574

 

 

Net income attributable to non-controlling interests

 

(275

)

 

(463

)

 

(595

)

 

(810

)

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

42,903

 

 

38,942

 

 

92,859

 

 

59,764

 

 

Net income available to participating securities

 

(119

)

 

(109

)

 

(221

)

 

(215

)

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders — basic and diluted

 

$

42,784

 

 

$

38,833

 

 

$

92,638

 

 

$

59,549

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

548,811,968

 

 

525,070,036

 

 

545,680,740

 

 

523,265,455

 

 

Weighted average common shares outstanding — diluted

 

549,920,213

 

 

525,933,643

 

 

546,836,809

 

 

524,190,469

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share — basic

 

$

0.08

 

 

$

0.07

 

 

$

0.17

 

 

$

0.11

 

 

Net income per common share — diluted

 

$

0.08

 

 

$

0.07

 

 

$

0.17

 

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.15

 

 

$

0.13

 

 

$

0.30

 

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

 

Glossary and Reconciliations

Glossary:

Average Monthly Rent

Average monthly rent represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period, and reflects the impact of non-service rental concessions and contractual rent increases amortized over the life of the lease.

Average Occupancy

Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period.

Core Operating Expenses

Core operating expenses for an identified population of homes reflect property operating and maintenance expenses, excluding any expenses recovered from residents.

Core Revenues

Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries.

EBITDA, EBITDAre, and Adjusted EBITDAre

EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define 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; and depreciation and amortization. National Association of Real Estate Investment Trusts ("Nareit") recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. We define EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax and impairment on depreciated real estate investments. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; merger and transaction-related expenses; severance; casualty losses, 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 our 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 our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our 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 our basis for computing these non-GAAP measures is comparable with that of other companies. See "Reconciliation of Non-GAAP Measures" 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 partnerships and joint ventures. In calculating per share amounts, Core FFO and AFFO reflect convertible debt securities in the form in which they were outstanding during the period.

We believe that FFO is a meaningful supplemental measure of the operating performance of our business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss.

The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our Core FFO and Adjusted FFO may not be comparable to the Core FFO and Adjusted FFO of other companies due to the fact that not all companies use the same definition of Core FFO and Adjusted FFO. Accordingly, there can be no assurance that our basis for computing this non-GAAP measures is comparable with that of other companies. See "Reconciliation of Non-GAAP measures" below for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.

Net Operating Income (NOI)

NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. We define 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; and other income and expenses.

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. Our 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 our basis for computing this non-GAAP measure is comparable with that of other companies.

We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting NOI for homes in our Same Store portfolio. See "Reconciliation of Non-GAAP Measures" below for a reconciliation of GAAP net income (loss) to NOI for our total portfolio and NOI for our Same Store portfolio.

Recurring Capital Expenditures or Recurring CapEx

Recurring Capital Expenditures or Recurring CapEx represents general replacements and expenditures required to preserve and maintain the value and functionality of a home and its systems as a single-family rental.

Rental Rate Growth

Rental rate growth for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease, and, in each case, reflects the impact of any amortized non-service rent concessions and amortized contractual rent increases. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home.

Revenue Collections as a Percentage of Month's Billings

Revenue collections as a percentage of month's billings represents the total cash received in a given monthly period for rental revenues and other property income (including receipt of late payments that were billed in prior months) divided by the total amounts billed in that period. When a payment plan is in place with a resident, amounts are considered to be billed at the time they would have been billed based on the terms of the original lease, not the terms of the payment plan. "Historical average" revenue collections as a percentage of monthly billings refer to revenue collections as a percentage of monthly billings for each of the months beginning October 2019 and to and including March 2020.

Same Store / Same Store Portfolio

Same Store or Same Store portfolio includes, for a given reporting period, 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.

We believe presenting information about the portion of our 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 our comparable homes across periods and about trends in our 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.

Turnover Rate

Turnover rate represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population.

Reconciliation of Non-GAAP Measures:

Reconciliation of FFO, Core FFO, and AFFO

($ in thousands, except shares and per share amounts) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

FFO Reconciliation

 

Q2 2020

 

Q2 2019

 

YTD 2020

 

YTD 2019

 

Net income available to common stockholders

 

$

42,784

 

 

$

59,549

 

 

$

92,638

 

 

$

59,549

 

 

Net income available to participating securities

 

119

 

 

215

 

 

221

 

 

215

 

 

Non-controlling interests

 

275

 

 

810

 

 

595

 

 

810

 

 

Depreciation and amortization on real estate assets

 

135,647

 

 

264,302

 

 

269,561

 

 

264,302

 

 

Impairment on depreciated real estate investments

 

1,442

 

 

7,329

 

 

3,913

 

 

7,329

 

 

Net gain on sale of previously depreciated investments in real estate

 

(11,167

)

 

(43,744

)

 

(26,367

)

 

(43,744

)

 

FFO

 

$

169,100

 

 

$

149,091

 

 

$

340,561

 

 

$

288,461

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO Reconciliation

 

Q2 2020

 

Q2 2019

 

YTD 2020

 

YTD 2019

 

FFO

 

$

169,100

 

 

$

149,091

 

 

$

340,561

 

 

$

288,461

 

 

Noncash interest expense

 

9,366

 

 

12,172

 

 

19,757

 

 

27,037

 

 

Share-based compensation expense

 

2,106

 

 

3,615

 

 

6,207

 

 

9,222

 

 

Offering related expenses

 

 

 

476

 

 

 

 

2,019

 

 

Merger and transaction-related expenses

 

 

 

1,552

 

 

 

 

4,347

 

 

Severance expense

 

255

 

 

375

 

 

255

 

 

7,344

 

 

Unrealized gains on investment in equity securities

 

 

 

 

 

(34

)

 

 

 

Casualty losses, net

 

(1,622

)

 

(2,405

)

 

(966

)

 

(266

)

 

Core FFO

 

$

179,205

 

 

$

164,876

 

 

$

365,780

 

 

$

338,164

 

 

 

 

 

 

 

 

 

 

 

 

AFFO Reconciliation

 

Q2 2020

 

Q2 2019

 

YTD 2020

 

YTD 2019

 

Core FFO

 

$

179,205

 

 

$

164,876

 

 

$

365,780

 

 

$

338,164

 

 

Recurring capital expenditures

 

(27,617

)

 

(31,799

)

 

(53,605

)

 

(56,910

)

 

Adjusted FFO

 

$

151,588

 

 

$

133,077

 

 

$

312,175

 

 

$

281,254

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted (1)

 

549,920,213

 

525,933,643

 

 

546,836,809

 

 

524,190,469

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share — diluted (1)

 

$

0.08

 

 

$

0.07

 

 

$

0.17

 

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

 

 

 

 

 

 

 

 

FFO for per share calculation(1)

 

$

173,379

 

 

$

151,874

 

 

$

349,119

 

 

$

294,047

 

 

Weighted average common shares and OP Units outstanding — diluted (1)

 

568,769,738

 

544,335,990

 

 

565,753,742

 

 

544,365,617

 

 

 

 

 

 

 

 

 

 

 

 

FFO per share — diluted (1)

 

$

0.30

 

 

$

0.28

 

 

$

0.62

 

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO and Adjusted FFO

 

 

 

 

 

 

 

 

 

Weighted average common shares and OP Units outstanding — diluted (2)

 

553,669,295

 

531,782,126

 

 

550,653,299

 

 

531,811,753

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per share — diluted (2)

 

$

0.32

 

 

$

0.31

 

 

$

0.66

 

 

$

0.64

 

 

AFFO per share — diluted (2)

 

$

0.27

 

 

$

0.25

 

 

$

0.57

 

 

$

0.53

 

 

 

 

 

 

 

 

 

 

 

 

(1)

In accordance with GAAP and Nareit guidelines, net income per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of each relevant period in 2019, and as if the 2022 Convertible Notes were converted to common shares at the beginning of each relevant period in 2019 and 2020, unless such treatment is anti-dilutive to net income per share or FFO per share.

 

 

 

In Q2 2020 and YTD 2020, treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to net income per share and dilutive to FFO per share. As such, Q2 2020 and YTD 2020 net income per share do not treat the 2022 Convertible Notes as if converted. Q2 2020 and YTD 2020 FFO per share treat the 2022 Convertible Notes as if converted, thereby adjusting FFO in the numerator to remove the interest expense associated with the 2022 Convertible Notes and adjusting shares outstanding in the denominator to include shares issuable on conversion of the 2022 Convertible Notes.

 

 

 

In Q2 2019 and YTD 2019, treatment of the 2019 Convertible Notes as if converted would be anti-dilutive to net income per share and dilutive to FFO per share. Treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to both net income per share and FFO per share. As such, Q2 2019 and YTD 2019 net income per share treat neither the 2019 Convertible Notes nor the 2022 Convertible Notes as if converted. Q2 2019 and YTD 2019 FFO per share treat the 2019 Convertible Notes as if converted, thereby adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes and adjusting shares outstanding in the denominator to include shares issuable on conversion of the 2019 Convertible Notes, but do not treat the 2022 Convertible Notes as if converted.

 

 

(2)

Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period.

 

 

 

As such, Q2 2020 and YTD 2020 Core FFO and AFFO per share reflect the conversion of the 2019 Convertible Notes, but do not treat the 2022 Convertible Notes as if converted.

 

 

 

Q2 2019 and YTD 2019 Core FFO and AFFO per share treat neither the 2019 Convertible Notes nor the 2022 Convertible Notes as if converted.

 

Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2020

 

Q1 2020

 

Q4 2019

 

Q3 2019

 

Q2 2019

 

Total revenues (total portfolio)

 

$

449,755

 

 

$

449,789

 

 

$

444,277

 

 

$

443,326

 

 

$

441,582

 

 

Non-Same Store revenues

 

(35,195

)

 

(31,191

)

 

(32,197

)

 

(34,739

)

 

(36,498

)

 

Same Store revenues

 

414,560

 

 

418,598

 

 

412,080

 

 

408,587

 

 

405,084

 

 

Same Store resident recoveries

 

(18,598

)

 

(18,655

)

 

(17,178

)

 

(17,805

)

 

(16,749

)

 

Same Store Core revenues

 

$

395,962

 

 

$

399,943

 

 

$

394,902

 

 

$

390,782

 

 

$

388,335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, YTD

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2020

 

YTD 2019

 

 

 

 

 

 

 

Total revenues (total portfolio)

 

$

899,544

 

 

$

877,082

 

 

 

 

 

 

 

 

Non-Same Store revenues

 

(66,386

)

 

(74,287

)

 

 

 

 

 

 

 

Same Store revenues

 

833,158

 

 

802,795

 

 

 

 

 

 

 

 

Same Store resident recoveries

 

(37,253

)

 

(31,736

)

 

 

 

 

 

 

 

Same Store Core revenues

 

$

795,905

 

 

$

771,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating Expenses, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2020

 

Q1 2020

 

Q4 2019

 

Q3 2019

 

Q2 2019

 

Property operating and maintenance expenses (total portfolio)

 

$

167,002

 

 

$

166,916

 

 

$

167,576

 

 

$

175,491

 

 

$

166,574

 

 

Non-Same Store operating expenses

 

(13,962

)

 

(13,868

)

 

(15,024

)

 

(16,046

)

 

(17,119

)

 

Same Store operating expenses

 

153,040

 

 

153,048

 

 

152,552

 

 

159,445

 

 

149,455

 

 

Same Store resident recoveries

 

(18,598

)

 

(18,655

)

 

(17,178

)

 

(17,805

)

 

(16,749

)

 

Same Store Core operating expenses

 

$

134,442

 

 

$

134,393

 

 

$

135,374

 

 

$

141,640

 

 

$

132,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating Expenses, YTD

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2020

 

YTD 2019

 

 

 

 

 

 

 

Property operating and maintenance expenses (total portfolio)

 

$

333,918

 

 

$

326,920

 

 

 

 

 

 

 

 

Non-Same Store operating expenses

 

(27,830

)

 

(34,865

)

 

 

 

 

 

 

 

Same Store operating expenses

 

306,088

 

 

292,055

 

 

 

 

 

 

 

 

Same Store resident recoveries

 

(37,253

)

 

(31,736

)

 

 

 

 

 

 

 

Same Store Core operating expenses

 

$

268,835

 

 

$

260,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to NOI and Same Store NOI, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 2020

 

Q1 2020

 

Q4 2019

 

Q3 2019

 

Q2 2019

 

Net income available to common stockholders

 

$

42,784

 

 

$

49,854

 

 

$

51,903

 

 

$

33,616

 

 

$

38,833

 

 

Net income available to participating securities

 

119

 

 

102

 

 

89

 

 

91

 

 

109

 

 

Non-controlling interests

 

275

 

 

320

 

 

562

 

 

276

 

 

463

 

 

Interest expense

 

86,071

 

 

84,757

 

 

88,417

 

 

89,067

 

 

95,706

 

 

Depreciation and amortization

 

137,266

 

 

135,027

 

 

133,764

 

 

133,315

 

 

133,031

 

 

Property management expense

 

14,529

 

 

14,228

 

 

14,561

 

 

15,872

 

 

16,021

 

 

General and administrative

 

14,426

 

 

14,372

 

 

15,375

 

 

16,405

 

 

15,956

 

 

Impairment and other

 

(180

)

 

3,127

 

 

6,940

 

 

4,740

 

 

1,671

 

 

Gain on sale of property, net of tax

 

(11,167

)

 

(15,200

)

 

(31,780

)

 

(20,812

)

 

(26,172

)

 

Other, net

 

(1,370

)

 

(3,714

)

 

(3,130

)

 

(4,735

)

 

(610

)

 

NOI (total portfolio)

 

282,753

 

 

282,873

 

 

276,701

 

 

267,835

 

 

275,008

 

 

Non-Same Store NOI

 

(21,233

)

 

(17,323

)

 

(17,173

)

 

(18,693

)

 

(19,379

)

 

Same Store NOI

 

$

261,520

 

 

$

265,550

 

 

$

259,528

 

 

$

249,142

 

 

$

255,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to NOI and Same Store NOI, YTD

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2020

 

YTD 2019

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

92,638

 

 

$

59,549

 

 

 

 

 

 

 

 

Net income available to participating securities

 

221

 

 

215

 

 

 

 

 

 

 

 

Non-controlling interests

 

595

 

 

810

 

 

 

 

 

 

 

 

Interest expense

 

170,828

 

 

189,689

 

 

 

 

 

 

 

 

Depreciation and amortization

 

272,293

 

 

266,640

 

 

 

 

 

 

 

 

Property management expense

 

28,901

 

 

31,181

 

 

 

 

 

 

 

 

General and administrative

 

28,654

 

 

42,494

 

 

 

 

 

 

 

 

Impairment and other

 

2,947

 

 

7,063

 

 

 

 

 

 

 

 

Gain on sale of property, net of tax

 

(26,367

)

 

(43,744

)

 

 

 

 

 

 

 

Other, net

 

(5,084

)

 

(3,735

)

 

 

 

 

 

 

 

NOI (total portfolio)

 

565,626

 

 

550,162

 

 

 

 

 

 

 

 

Non-Same Store NOI

 

(38,556

)

 

(39,422

)

 

 

 

 

 

 

 

Same Store NOI

 

$

527,070

 

 

$

510,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre

(in thousands, unaudited)

 

 

Q2 2020

 

Q2 2019

 

YTD 2020

 

YTD 2019

 

 

Net income available to common stockholders

 

$

42,784

 

 

$

38,833

 

 

$

92,638

 

 

$

59,549

 

 

 

Net income available to participating securities

 

119

 

 

109

 

 

221

 

 

215

 

 

 

Non-controlling interests

 

275

 

 

463

 

 

595

 

 

810

 

 

 

Interest expense

 

86,071

 

 

95,706

 

 

170,828

 

 

189,689

 

 

 

Depreciation and amortization

 

137,266

 

 

133,031

 

 

272,293

 

 

266,640

 

 

 

EBITDA

 

266,515

 

 

268,142

 

 

536,575

 

 

516,903

 

 

 

Gain on sale of property, net of tax

 

(11,167

)

 

(26,172

)

 

(26,367

)

 

(43,744

)

 

 

Impairment on depreciated real estate investments

 

1,442

 

 

4,076

 

 

3,913

 

 

7,329

 

 

 

EBITDAre

 

256,790

 

 

246,046

 

 

514,121

 

 

480,488

 

 

 

Share-based compensation expense

 

2,106

 

 

3,615

 

 

6,207

 

 

9,222

 

 

 

Merger and transaction-related expenses

 

 

 

1,552

 

 

 

 

4,347

 

 

 

Severance

 

255

 

 

375

 

 

255

 

 

7,344

 

 

 

Casualty losses, net

 

(1,622

)

 

(2,405

)

 

(966

)

 

(266

)

 

 

Other, net

 

(1,370

)

 

(610

)

 

(5,084

)

 

(3,735

)

 

 

Adjusted EBITDAre

 

$

256,159

 

 

$

248,573

 

 

$

514,533

 

 

$

497,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trailing Twelve Months (TTM)
Ended

 

 

 

 

 

 

June 30,

2020

 

December 31,
2019

 

 

 

 

 

 

Net income available to common stockholders

 

$

178,157

 

 

$

145,068

 

 

 

 

 

 

 

Net income available to participating securities

 

401

 

 

395

 

 

 

 

 

 

 

Non-controlling interests

 

1,433

 

 

1,648

 

 

 

 

 

 

 

Interest expense

 

348,312

 

 

367,173

 

 

 

 

 

 

 

Depreciation and amortization

 

539,372

 

 

533,719

 

 

 

 

 

 

 

EBITDA

 

1,067,675

 

 

1,048,003

 

 

 

 

 

 

 

Gain on sale of property, net of tax

 

(78,959

)

 

(96,336

)

 

 

 

 

 

 

Impairment on depreciated real estate investments

 

10,794

 

 

14,210

 

 

 

 

 

 

 

EBITDAre

 

999,510

 

 

965,877

 

 

 

 

 

 

 

Share-based compensation expense

 

15,143

 

 

18,158

 

 

 

 

 

 

 

Merger and transaction-related expenses

 

 

 

4,347

 

 

 

 

 

 

 

Severance

 

1,376

 

 

8,465

 

 

 

 

 

 

 

Casualty losses, net

 

3,833

 

 

4,533

 

 

 

 

 

 

 

Other, net

 

(12,949

)

 

(11,600

)

 

 

 

 

 

 

Adjusted EBITDAre

 

$

1,006,913

 

 

$

989,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Debt / TTM Adjusted EBITDAre

 

(in thousands, except for ratio) (unaudited)

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

 

 

 

June 30, 2020

 

December 31, 2019

 

 

Mortgage loans, net

 

$

6,118,575

 

 

$

6,238,461

 

 

 

Secured term loan, net

 

400,986

 

 

400,978

 

 

 

Term loan facility, net

 

1,495,191

 

 

1,493,747

 

 

 

Revolving facility

 

 

 

 

 

 

Convertible senior notes, net

 

336,820

 

 

334,299

 

 

 

Total Debt per Balance Sheet

 

8,351,572

 

 

8,467,485

 

 

 

Retained and repurchased certificates

 

(312,845

)

 

(319,632

)

 

 

Cash, ex-security deposits and letters of credit (1)

 

(637,767

)

 

(138,059

)

 

 

Deferred financing costs, net

 

23,517

 

 

36,685

 

 

 

Unamortized discounts on note payable

 

10,645

 

 

13,342

 

 

 

Net Debt (A)

 

$

7,435,122

 

 

$

8,059,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Trailing Twelve

 

For the Trailing Twelve

 

 

 

 

Months (TTM) Ended

 

Months (TTM) Ended

 

 

 

 

June 30, 2020

 

December 31, 2019

 

 

Adjusted EBITDAre (B)

 

$

1,006,913

 

 

$

989,780

 

 

 

 

 

 

 

 

 

 

Net Debt / TTM Adjusted EBITDAre (A / B)

 

7.4

x

 

8.1

x

 

 

 

 

 

 

 

 

 

(1)

Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit.

 

Investor Relations Contact
Greg Van Winkle
Phone: 844.456.INVH (4684)
Email: IR@InvitationHomes.com

Media Relations Contact
Kristi DesJarlais
Phone: 972.421.3587
Email: Media@InvitationHomes.com

Source: Invitation Homes Inc.