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Invitation Homes Reports Fourth Quarter 2021 and Full Year 2021 Results

02/15/2022

Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), the nation's premier single-family home leasing company, today announced its Q4 2021 and FY 2021 financial and operating results.

Fourth Quarter 2021 and Full Year 2021 Highlights

  • Year over year, in Q4 2021, total revenues increased 12.1% to $520 million, and property operating and maintenance costs increased 5.5% to $178 million. In FY 2021, total revenues increased 9.5% to $1,997 million, and property operating and maintenance costs increased 3.8% to $706 million.
  • In Q4 2021, net income available to common stockholders totaled $74 million or $0.12 per diluted common share. In FY 2021, net income available to common stockholders totaled $261 million or $0.45 per diluted common share.
  • Year over year, in Q4 2021, Core FFO per share increased 19.7% to $0.39, and AFFO per share increased 21.0% to $0.33. In FY 2021, Core FFO per share increased 16.2% to $1.49, and AFFO per share increased 18.8% to $1.28.
  • In Q4 2021, Same Store NOI grew 12.6% year over year on 9.5% Same Store Core Revenues growth and 3.1% Same Store Core Operating Expenses growth. In FY 2021, Same Store NOI grew 9.4% year over year on 6.4% Same Store Core Revenues growth and 0.5% Same Store Core Operating Expenses growth.
  • In Q4 2021, Same Store Average Occupancy was 98.1%. In FY 2021, Same Store Average Occupancy was 98.2%, up 70 basis points year over year.
  • In Q4 2021, Same Store new lease rent growth of 17.3% and Same Store renewal rent growth of 9.0% drove Same Store blended rent growth of 11.1%, up 630 basis points year over year. In FY 2021, Same Store new lease rent growth of 14.4% and Same Store renewal rent growth of 6.7% drove Same Store blended rent growth of 8.8%, up 500 basis points year over year.
  • In Q4 2021, revenue collections were approximately 99% of the Company's historical average collection rate. Same Store bad debt as a percentage of gross rental revenue decreased from 2.4% in Q4 2020 to 1.1% in Q4 2021.
  • In Q4 2021, acquisitions by the Company and the Company's joint ventures totaled 1,543 homes for $656 million while dispositions totaled 139 homes for $51 million. In FY 2021, acquisitions by the Company and the Company's joint ventures totaled 4,802 homes for $1,947 million while dispositions totaled 783 homes for $263 million.
  • As previously announced in November 2021, the Company closed a public bond offering of $1 billion aggregate principal balance, consisting of $600 million of bonds with a fixed coupon of 2.3% maturing on November 15, 2028 and $400 million of bonds with a fixed coupon of 2.7% maturing on January 15, 2034. Net proceeds were used primarily to voluntarily prepay secured indebtedness and for general corporate purposes including acquisitions.
  • Net debt / TTM adjusted EBITDAre decreased from 7.3x at December 31, 2020 to 6.2x at December 31, 2021.
  • As previously announced, the Company agreed to invest $250 million with Pathway Homes, a new real estate company that provides consumers multiple options to purchase a home. In addition to investing in the technology platform and homes for the startup and its real estate fund, Invitation Homes will provide maintenance and other services to all Pathway homes.

President & Chief Executive Officer Dallas Tanner comments:

"2021 was an extraordinary and active year for Invitation Homes. I extend my heartfelt thanks to all of our associates for exceeding the high expectations of our residents and stakeholders throughout the past year. Through multiple channels, we accretively grew our portfolio with nearly $2 billion of acquisitions while reducing our leverage and strengthening our investment-grade balance sheet. Steady job growth and positive demographic trends in our markets continue to generate favorable leasing results across our portfolio, and we expect the demand for single-family rental homes to remain strong in 2022. With these supportive backdrops, we expect Core FFO growth in 2022 of 11.4% at the midpoint of our guidance."

Financial Results

Net Income, FFO, Core FFO, and AFFO Per Share — Diluted(1)

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q4 2020

 

FY 2021

 

FY 2020

 

Net income

 

$

0.12

 

$

0.12

 

$

0.45

 

$

0.35

 

FFO

 

 

0.35

 

 

0.35

 

 

1.35

 

 

1.24

 

Core FFO

 

 

0.39

 

 

0.32

 

 

1.49

 

 

1.28

 

AFFO

 

 

0.33

 

 

0.27

 

 

1.28

 

 

1.08

 

 

 

 

 

 

 

 

 

 

 

(1)

See "Reconciliation of FFO, Core FFO, and AFFO," footnotes (1) and (2), for details on the treatment of convertible notes in each specific period presented in the table.

Net Income

Net income per share in the fourth quarter of 2021 was $0.12, compared to net income per share of $0.12 in the fourth quarter of 2020. Total revenues and total property operating and maintenance expenses in the fourth quarter of 2021 were $520 million and $178 million, respectively, compared to $464 million and $169 million, respectively, in the fourth quarter of 2020.

Net income per share in FY 2021 was $0.45, compared to net income per share of $0.35 in FY 2020. Total revenues and total property operating and maintenance expenses in FY 2021 were $1,997 million and $706 million, respectively, compared to $1,823 million and $681 million, respectively, in FY 2020.

Core FFO

Year over year, Core FFO per share in the fourth quarter of 2021 increased 19.7% to $0.39, primarily due to NOI growth and interest expense savings.

Year over year, Core FFO per share in FY 2021 increased 16.2% to $1.49, primarily due to NOI growth and interest expense savings.

AFFO

Year over year, AFFO per share in the fourth quarter of 2021 increased 21.0% to $0.33, primarily due to the increase in Core FFO per share described above.

Year over year, AFFO per share in FY 2021 increased 18.8% to $1.28, 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:

 

72,245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q4 2020

 

FY 2021

 

FY 2020

 

Core Revenues growth (year over year)

 

9.5

%

 

 

 

6.4

%

 

 

 

Core Operating Expenses growth (year over year)

 

3.1

%

 

 

 

0.5

%

 

 

 

NOI growth (year over year)

 

12.6

%

 

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Occupancy

 

98.1

%

 

98.1

%

 

98.2

%

 

97.5

%

 

Bad debt % of gross rental revenues (1)

 

1.1

%

 

2.4

%

 

1.5

%

 

1.6

%

 

Turnover Rate

 

4.6

%

 

5.7

%

 

22.9

%

 

26.4

%

 

 

 

 

 

 

 

 

 

 

 

Rental Rate Growth (lease-over-lease):

 

 

 

 

 

 

 

 

 

Renewals

 

9.0

%

 

3.8

%

 

6.7

%

 

3.7

%

 

New leases

 

17.3

%

 

6.8

%

 

14.4

%

 

4.2

%

 

Blended

 

11.1

%

 

4.8

%

 

8.8

%

 

3.8

%

 

 

 

 

 

 

 

 

 

 

 

(1)

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

Revenue Collections Update

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Pre-COVID
Average (2)

 

Revenues collected % of revenues due: (1)

 

 

 

 

 

 

 

 

 

 

 

Revenues collected in same month billed

 

92

%

 

92

%

 

92

%

 

91

%

 

96

%

 

Late collections of prior month billings

 

6

%

 

5

%

 

6

%

 

6

%

 

3

%

 

Total collections

 

98

%

 

97

%

 

98

%

 

97

%

 

99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

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

(2)

Represents the period from October 2019 to March 2020.

Same Store NOI

For the Same Store Portfolio of 72,245 homes, fourth quarter 2021 Same Store NOI increased 12.6% year over year on Same Store Core Revenues growth of 9.5% and Same Store Core Operating Expenses growth of 3.1%.

FY 2021 Same Store NOI increased 9.4% year over year on Same Store Core Revenues growth of 6.4% and Same Store Core Operating Expenses growth of 0.5%.

Same Store Core Revenues

Fourth quarter 2021 Same Store Core Revenues growth of 9.5% year over year was driven by a 7.1% increase in Average Monthly Rent, a 130 basis points year over year improvement in bad debt as a percentage of gross rental revenue, and a 53.6% increase in other income, net of resident recoveries.

FY 2021 Same Store Core Revenues growth of 6.4% year over year was driven by a 5.1% increase in Average Monthly Rent, a 70 basis point increase in Average Occupancy to 98.2%, and a 22.6% increase in other income, net of resident recoveries.

Same Store Core Operating Expenses

Fourth quarter 2021 Same Store Core Operating Expenses increased 3.1% year over year, driven by a 3.1% increase in Same Store fixed expense and a 12.6% increase in personnel expenses, partially offset by a 12.3% decline in turnover expenses, net of resident recoveries.

FY 2021 Same Store Core Operating Expenses increased 0.5% year over year, driven by a 2.9% increase in Same Store fixed expenses, partially offset by a 3.4% decline in Same Store controllable expenses, net of resident recoveries.

Investment Management Activity

Fourth quarter 2021 acquisitions totaled 1,543 homes for $656 million through diversified acquisition channels. This included 961 wholly owned homes for $420 million and 582 homes for $236 million in the Company's unconsolidated joint venture with the Rockpoint Group (the "Rockpoint JV"). Invitation Homes owns 20% of the Rockpoint JV, which owned a total of 2,004 homes as of December 31, 2021.

Dispositions in the fourth quarter of 2021 included 129 wholly owned homes for gross proceeds of $47 million and 10 homes for gross proceeds of $4 million in the Company's unconsolidated joint venture with the Federal National Mortgage Association (the "FNMA JV").

In FY 2021, the Company acquired 4,802 homes for $1,947 million, including 2,938 wholly owned homes for $1,229 million and 1,864 homes for $718 million in the Rockpoint JV. The Company also sold 783 homes for $263 million, including 734 wholly owned homes for $244 million and 49 homes for $19 million in the FNMA JV.

As previously announced, the Company has agreed to invest $250 million with Pathway Homes, a new real estate company that provides consumers multiple options to purchase a home. In addition to investing in the technology platform and homes for the startup and its real estate fund, Invitation Homes will provide maintenance and other services to all Pathway homes.

Balance Sheet and Capital Markets Activity

As of December 31, 2021, the Company had $1,610 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility. The Company's total indebtedness as of December 31, 2021 was $8,062 million, consisting of $4,591 million of unsecured debt and $3,471 million of secured debt.

As previously announced in November 2021, the Company closed a public bond offering of $1 billion aggregate principal balance, consisting of $600 million of bonds with a fixed coupon of 2.3% maturing on November 15, 2028 (the "November 2028 Notes") and $400 million of bonds with a fixed coupon of 2.7% maturing on January 15, 2034 (the "January 2034 Notes). The November 2028 Notes were priced at 99.871% of the principal amount, and the January 2034 Notes were priced at 99.809% of the principal amount. Net proceeds were used primarily to voluntarily prepay secured indebtedness and for general corporate purposes including acquisitions. As a result of the prepayment of secured indebtedness, 4,182 additional homes were unencumbered.

During Q4 2021, the Company issued 4.1 million shares of common stock under its 2019 at the market equity program (the "2019 ATM Equity Program") at an average price of $41.63 per share. Total gross proceeds of $169 million were used primarily to acquire homes. In December 2021, the Company terminated its 2019 ATM Equity Program and entered into a new at the market equity program (the "2021 ATM Equity Program") to sell, from time to time, up to an aggregate sales price of $1.25 billion of the Company's common stock through current and forward offerings. No shares were issued under the 2021 ATM Equity Program as of December 31, 2021.

On January 18, 2022, the Company settled the remaining $141 million principal balance of its 3.5% Convertible Notes due January 15, 2022 (the "2022 Convertible Notes") with the issuance of an additional 6,216,261 common shares.

Dividend

As previously announced on February 4, 2022, the Company's Board of Directors declared a quarterly cash dividend of $0.22 per share of common stock, representing a 29.4% increase over the prior quarterly dividend of $0.17 per share. The dividend will be paid on or before February 28, 2022, to stockholders of record as of the close of business on February 14, 2022.

FY 2022 Guidance

FY 2022 Guidance

 

 

 

 

 

 

 

 

FY 2022

 

FY 2021

 

 

 

Guidance

 

Actual

 

Core FFO per share — diluted

 

$1.62 - $1.70

 

$

1.49

 

 

AFFO per share — diluted

 

$1.38 - $1.46

 

$

1.28

 

 

 

 

 

 

 

 

Same Store Core Revenues growth

 

8.0% - 9.0%

 

 

6.4

%

 

Same Store Core Operating Expenses growth

 

5.5% - 6.5%

 

 

0.5

%

 

Same Store NOI growth

 

9.0% - 10.5%

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Bridge from FY 2021 Results to FY 2022 Guidance Midpoint

 

 

Core FFO/sh

 

 

 

FY 2021 reported result

 

$

1.49

 

 

 

 

 

 

 

 

 

 

Impact from Changes in:

 

 

 

 

 

Same Store NOI (1)

 

 

0.19

 

 

 

 

Non-Same Store NOI

 

 

0.09

 

 

 

 

Joint Venture Management Fees

 

 

0.02

 

 

 

 

Property management and G&A expense

 

 

(0.03

)

 

 

 

Interest expense (2)

 

 

0.01

 

 

 

 

Share count (2)

 

 

(0.09

)

 

 

 

Other

 

 

(0.02

)

 

 

 

Total change

 

 

0.17

 

 

 

 

 

 

 

 

 

 

FY 2022 guidance midpoint

 

$

1.66

 

 

 

 

 

 

 

 

 

 

(1)

Based on the 2022 Same Store pool, consisting of 75,700 homes as of January 2022.

(2)

Includes the impact from the conversions of the 2022 Convertible Notes.

Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income (loss), total revenues, and property operating and maintenance expense, or a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses growth, and Same Store NOI growth to the comparable GAAP financial measures because it is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on the Company's GAAP results for the guidance period.

Earnings Conference Call Information

Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on February 16, 2022, to discuss results for the fourth quarter of 2021. The domestic dial-in number is 1-844-200-6205, and the international dial-in number is 1-929-526-1599. The passcode is 400967. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through March 16, 2022, and can be accessed by calling 1-866-813-9403 (domestic) or 1-929-458-6194 (international) and using the replay passcode 341803, or by using the link at www.invh.com.

Supplemental Information

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

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

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

About Invitation Homes

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

December 31, 2020

 

 

 

(unaudited)

 

 

 

Assets:

 

 

 

 

 

Investments in single-family residential properties, net

 

$

16,935,322

 

 

$

16,288,693

 

 

Cash and cash equivalents

 

 

610,166

 

 

 

213,422

 

 

Restricted cash

 

 

208,692

 

 

 

198,346

 

 

Goodwill

 

 

258,207

 

 

 

258,207

 

 

Investments in unconsolidated joint ventures

 

 

130,395

 

 

 

69,267

 

 

Other assets, net

 

 

395,064

 

 

 

478,287

 

 

Total assets

 

$

18,537,846

 

 

$

17,506,222

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Mortgage loans, net

 

$

3,055,853

 

 

$

4,820,098

 

 

Secured term loan, net

 

 

401,313

 

 

 

401,095

 

 

Unsecured notes, net

 

 

1,921,974

 

 

 

 

 

Term loan facility, net

 

 

2,478,122

 

 

 

2,470,907

 

 

Revolving facility

 

 

 

 

 

 

 

Convertible senior notes, net

 

 

141,397

 

 

 

339,404

 

 

Accounts payable and accrued expenses

 

 

193,633

 

 

 

149,299

 

 

Resident security deposits

 

 

165,167

 

 

 

157,936

 

 

Other liabilities

 

 

341,583

 

 

 

611,410

 

 

Total liabilities

 

 

8,699,042

 

 

 

8,950,149

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of December 31, 2021 and 2020

 

 

 

 

 

 

 

Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 601,045,438 and 567,117,666 outstanding as of December 31, 2021 and 2020, respectively

 

 

6,010

 

 

 

5,671

 

 

Additional paid-in capital

 

 

10,873,539

 

 

 

9,707,258

 

 

Accumulated deficit

 

 

(794,869

)

 

 

(661,162

)

 

Accumulated other comprehensive loss

 

 

(286,938

)

 

 

(546,942

)

 

Total stockholders' equity

 

 

9,797,742

 

 

 

8,504,825

 

 

Non-controlling interests

 

 

41,062

 

 

 

51,248

 

 

Total equity

 

 

9,838,804

 

 

 

8,556,073

 

 

Total liabilities and equity

 

$

18,537,846

 

 

$

17,506,222

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q4 2020

 

FY 2021

 

FY 2020

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

475,436

 

 

$

429,866

 

 

$

1,826,768

 

 

$

1,687,724

 

 

Other property income

 

 

43,036

 

 

 

34,234

 

 

 

164,954

 

 

 

135,104

 

 

Joint venture management fees

 

 

1,753

 

 

 

 

 

 

4,893

 

 

 

 

 

Total revenues

 

 

520,225

 

 

 

464,100

 

 

 

1,996,615

 

 

 

1,822,828

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Property operating and maintenance

 

 

177,883

 

 

 

168,628

 

 

 

706,162

 

 

 

680,543

 

 

Property management expense

 

 

20,173

 

 

 

14,888

 

 

 

71,597

 

 

 

58,613

 

 

General and administrative

 

 

19,668

 

 

 

16,679

 

 

 

75,815

 

 

 

63,305

 

 

Interest expense

 

 

79,121

 

 

 

95,382

 

 

 

322,661

 

 

 

353,923

 

 

Depreciation and amortization

 

 

151,660

 

 

 

142,090

 

 

 

592,135

 

 

 

552,530

 

 

Impairment and other

 

 

3,046

 

 

 

(3,974

)

 

 

8,676

 

 

 

696

 

 

Total expenses

 

 

451,551

 

 

 

433,693

 

 

 

1,777,046

 

 

 

1,709,610

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on investments in equity securities, net

 

 

(3,597

)

 

 

29,689

 

 

 

(9,420

)

 

 

29,723

 

 

Other, net

 

 

(2,654

)

 

 

(2,087

)

 

 

(5,835

)

 

 

(86

)

 

Gain on sale of property, net of tax

 

 

14,558

 

 

 

13,121

 

 

 

60,008

 

 

 

54,594

 

 

Income (loss) from investments in unconsolidated joint ventures

 

 

(2,110

)

 

 

 

 

 

(1,546

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

74,871

 

 

 

71,130

 

 

 

262,776

 

 

 

197,449

 

 

Net income attributable to non-controlling interests

 

 

(328

)

 

 

(431

)

 

 

(1,351

)

 

 

(1,237

)

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

 

74,543

 

 

 

70,699

 

 

 

261,425

 

 

 

196,212

 

 

Net income available to participating securities

 

 

(67

)

 

 

(113

)

 

 

(327

)

 

 

(448

)

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders — basic and diluted

 

$

74,476

 

 

$

70,586

 

 

$

261,098

 

 

$

195,764

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

 

598,076,066

 

 

 

563,968,010

 

 

 

577,681,070

 

 

 

553,993,321

 

 

Weighted average common shares outstanding — diluted

 

 

599,827,368

 

 

 

565,541,098

 

 

 

579,209,523

 

 

 

555,458,607

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share — basic

 

$

0.12

 

 

$

0.13

 

 

$

0.45

 

 

$

0.35

 

 

Net income per common share — diluted

 

$

0.12

 

 

$

0.12

 

 

$

0.45

 

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.17

 

 

$

0.15

 

 

$

0.68

 

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

 

Glossary and Reconciliations

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. The Company defines EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. National Association of Real Estate Investment Trusts ("Nareit") recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. The Company defines EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax and impairment on depreciated real estate investments. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; severance; casualty (gains) losses, net; (gains) losses on investments in equity securities, net; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of the Company's financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.

The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that the Company's basis for computing these non-GAAP measures is comparable with that of other companies. See below for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.

Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)

FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated joint ventures. In calculating per share amounts, Core FFO and AFFO reflect convertible debt securities in the form in which they were outstanding during the period.

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

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

Net Operating Income (NOI)

NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. The Company defines NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs, and marketing expense). NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; impairment and other; gain on sale of property, net of tax; (gains) losses on investments in equity securities, net; other income and expenses; joint venture management fees; and income from investments in unconsolidated joint ventures.

The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that the Company's basis for computing this non-GAAP measure is comparable with that of other companies.

The Company believes that Same Store NOI is also a meaningful supplemental measure of the Company's operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of the Company's performance across reporting periods by reflecting NOI for homes in its Same Store Portfolio.

See below for a reconciliation of GAAP net income to NOI for the Company's total portfolio and NOI for its Same Store Portfolio.

Recurring Capital Expenditures or Recurring CapEx

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

Rental Rate Growth

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

Revenue Collections

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

Same Store / Same Store Portfolio

Same Store or Same Store portfolio includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio, and homes in markets that the Company has announced an intent to exit where the Company no longer operates a significant number of homes.

Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio may be considered stabilized at the time of acquisition.

Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established.

The Company believes presenting information about the portion of its portfolio that has been fully operational for the entirety of a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of the Company's comparable homes across periods and about trends in its organic business.

Total Homes / Total Portfolio

Total homes or total portfolio refers to the total number of homes owned, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated. Unless otherwise indicated, total homes or total portfolio refers to the wholly owned homes and excludes homes owned in joint ventures.

Turnover Rate

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

Reconciliation of FFO, Core FFO, and AFFO

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

 

 

 

 

 

 

 

 

 

 

 

FFO Reconciliation

 

Q4 2021

 

Q4 2020

 

FY 2021

 

FY 2020

 

Net income available to common stockholders

 

$

74,476

 

 

$

70,586

 

 

$

261,098

 

 

$

195,764

 

 

Net income available to participating securities

 

 

67

 

 

 

113

 

 

 

327

 

 

 

448

 

 

Non-controlling interests

 

 

328

 

 

 

431

 

 

 

1,351

 

 

 

1,237

 

 

Depreciation and amortization on real estate assets

 

 

149,753

 

 

 

140,341

 

 

 

585,101

 

 

 

546,419

 

 

Impairment on depreciated real estate investments

 

 

 

 

 

376

 

 

 

650

 

 

 

4,578

 

 

Net gain on sale of previously depreciated investments in real estate

 

 

(14,558

)

 

 

(13,121

)

 

 

(60,008

)

 

 

(54,594

)

 

Depreciation and net gain on sale of investments in unconsolidated joint ventures

 

 

315

 

 

 

 

 

 

254

 

 

 

 

 

FFO

 

$

210,381

 

 

$

198,726

 

 

$

788,773

 

 

$

693,852

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO Reconciliation

 

Q4 2021

 

Q4 2020

 

FY 2021

 

FY 2020

 

FFO

 

$

210,381

 

 

$

198,726

 

 

$

788,773

 

 

$

693,852

 

 

Non-cash interest expense, including the Company's share from unconsolidated joint ventures

 

 

8,729

 

 

 

13,775

 

 

 

34,520

 

 

 

40,415

 

 

Share-based compensation expense

 

 

6,098

 

 

 

4,797

 

 

 

27,170

 

 

 

17,090

 

 

Severance expense

 

 

557

 

 

 

213

 

 

 

1,057

 

 

 

601

 

 

Casualty (gains) losses, net

 

 

3,046

 

 

 

(4,350

)

 

 

8,026

 

 

 

(3,882

)

 

(Gains) losses on investments in equity securities, net

 

 

3,597

 

 

 

(29,689

)

 

 

9,420

 

 

 

(29,723

)

 

Core FFO

 

$

232,408

 

 

$

183,472

 

 

$

868,966

 

 

$

718,353

 

 

 

 

 

 

 

 

 

 

 

 

AFFO Reconciliation

 

Q4 2021

 

Q4 2020

 

FY 2021

 

FY 2020

 

Core FFO

 

$

232,408

 

 

$

183,472

 

 

$

868,966

 

 

$

718,353

 

 

Recurring capital expenditures, including the Company's share from unconsolidated joint ventures

 

 

(33,968

)

 

 

(28,485

)

 

 

(123,405

)

 

 

(115,951

)

 

Adjusted FFO

 

$

198,440

 

 

$

154,987

 

 

$

745,561

 

 

$

602,402

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted (1)

 

 

599,827,368

 

 

 

565,541,098

 

 

 

579,209,523

 

 

 

555,458,607

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share — diluted (1)

 

$

0.12

 

 

$

0.12

 

 

$

0.45

 

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

 

 

 

 

 

 

 

 

Numerator for FFO per common share — diluted(1)

 

$

212,214

 

 

$

203,037

 

 

$

803,137

 

 

$

711,033

 

 

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

 

 

611,140,145

 

 

 

584,506,076

 

 

 

593,735,669

 

 

 

574,408,346

 

 

 

 

 

 

 

 

 

 

 

 

FFO per share — diluted (1)

 

$

0.35

 

 

$

0.35

 

 

$

1.35

 

 

$

1.24

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO and Adjusted FFO

 

 

 

 

 

 

 

 

 

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

 

 

602,631,795

 

 

 

569,405,633

 

 

 

582,442,466

 

 

 

559,307,903

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO per share — diluted (2)

 

$

0.39

 

 

$

0.32

 

 

$

1.49

 

 

$

1.28

 

 

AFFO per share — diluted (2)

 

$

0.33

 

 

$

0.27

 

 

$

1.28

 

 

$

1.08

 

 

 

 

 

 

 

 

 

 

 

 

(1)

During Q4 2021 and FY 2021, at the election of the noteholders, the Company settled $5 million and $204 million of principal balance outstanding of the 2022 Convertible Notes with the issuance of 219,953 and 8,943,374 shares of its common stock, respectively. For the period subsequent to such conversion dates, shares issued in connection with any settled conversions of the 2022 Convertible Notes are included within weighted shares outstanding and therefore impact diluted per share information.

 

In accordance with GAAP and Nareit guidelines, net income per share — diluted and FFO per share — diluted include the effect of shares issuable in respect of the 2022 Convertible Notes if such shares are dilutive to the calculation.

 

In Q4 2021 and Q4 2020, the effect of the shares issuable in respect of the 2022 Convertible Notes is anti-dilutive to net income per share and dilutive to FFO per share. As such, net income per share is not adjusted for conversion of the 2022 Convertible Notes during these periods, and FFO per share considers the dilutive effect of the 2022 Convertible Notes by removing the related interest expense from the numerator and increasing the denominator to include shares issuable on conversion of the 2022 Convertible Notes.

 

In FY 2021 and FY 2020, the effect of the shares issuable in respect of the 2022 Convertible Notes is anti-dilutive to net income per share and dilutive to FFO per share. As such, net income per share is not adjusted for conversion of the 2022 Convertible Notes during these periods, and FFO per share considers the dilutive effect of the 2022 Convertible Notes by removing the related interest expense from the numerator and increasing the denominator to include shares issuable on conversion of the 2022 Convertible Notes.

 

(2)

Core FFO and AFFO per share reflect the 2022 Convertible Notes in the form in which they were outstanding during each period. As such, Core FFO and AFFO per share do not treat the outstanding 2022 Convertible Notes as if converted for each of the periods presented.

Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Total revenues (Total Portfolio)

 

$

520,225

 

 

$

509,532

 

 

$

491,633

 

 

$

475,225

 

 

$

464,100

 

 

Joint venture management fees

 

 

(1,753

)

 

 

(1,354

)

 

 

(1,015

)

 

 

(771

)

 

 

 

 

Total portfolio resident recoveries

 

 

(26,967

)

 

 

(27,972

)

 

 

(26,076

)

 

 

(24,740

)

 

 

(23,885

)

 

Total Core Revenues (Total Portfolio)

 

 

491,505

 

 

 

480,206

 

 

 

464,542

 

 

 

449,714

 

 

 

440,215

 

 

Non-Same Store Core Revenues

 

 

(50,345

)

 

 

(47,814

)

 

 

(44,850

)

 

 

(40,892

)

 

 

(37,332

)

 

Same Store Core Revenues

 

$

441,160

 

 

$

432,392

 

 

$

419,692

 

 

$

408,822

 

 

$

402,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Total Revenues to Same Store Core Revenues, FY

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY 2021

 

FY 2020

 

 

 

 

 

 

 

Total revenues (Total Portfolio)

 

$

1,996,615

 

 

$

1,822,828

 

 

 

 

 

 

 

 

Joint venture management fees

 

 

(4,893

)

 

 

 

 

 

 

 

 

 

 

Total Portfolio resident recoveries

 

 

(105,755

)

 

 

(87,758

)

 

 

 

 

 

 

 

Total Core Revenues (Total Portfolio)

 

 

1,885,967

 

 

 

1,735,070

 

 

 

 

 

 

 

 

Non-Same Store Core Revenues

 

 

(183,901

)

 

 

(135,804

)

 

 

 

 

 

 

 

Same Store Core Revenues

 

$

1,702,066

 

 

$

1,599,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Property operating and maintenance expenses (Total Portfolio)

 

$

177,883

 

 

$

184,484

 

 

$

175,422

 

 

$

168,373

 

 

$

168,628

 

 

Total Portfolio resident recoveries

 

 

(26,967

)

 

 

(27,972

)

 

 

(26,076

)

 

 

(24,740

)

 

 

(23,885

)

 

Core Operating Expenses (Total Portfolio)

 

 

150,916

 

 

 

156,512

 

 

 

149,346

 

 

 

143,633

 

 

 

144,743

 

 

Non-Same Store Core Operating Expenses

 

 

(14,939

)

 

 

(14,187

)

 

 

(14,045

)

 

 

(12,786

)

 

 

(12,890

)

 

Same Store Core Operating Expenses

 

$

135,977

 

 

$

142,325

 

 

$

135,301

 

 

$

130,847

 

 

$

131,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY 2021

 

FY 2020

 

 

 

 

 

 

 

Property operating and maintenance expenses (Total Portfolio)

 

$

706,162

 

 

$

680,543

 

 

 

 

 

 

 

 

Total Portfolio resident recoveries

 

 

(105,755

)

 

 

(87,758

)

 

 

 

 

 

 

 

Core Operating Expenses (Total Portfolio)

 

 

600,407

 

 

 

592,785

 

 

 

 

 

 

 

 

Non-Same Store Core Operating Expenses

 

 

(55,957

)

 

 

(51,296

)

 

 

 

 

 

 

 

Same Store Core Operating Expenses

 

$

544,450

 

 

$

541,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Same Store NOI, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Net income available to common stockholders

 

$

74,476

 

 

$

69,108

 

 

$

60,242

 

 

$

57,272

 

 

$

70,586

 

 

Net income available to participating securities

 

 

67

 

 

 

69

 

 

 

96

 

 

 

95

 

 

 

113

 

 

Non-controlling interests

 

 

328

 

 

 

318

 

 

 

350

 

 

 

355

 

 

 

431

 

 

Interest expense

 

 

79,121

 

 

 

79,370

 

 

 

80,764

 

 

 

83,406

 

 

 

95,382

 

 

Depreciation and amortization

 

 

151,660

 

 

 

150,694

 

 

 

145,280

 

 

 

144,501

 

 

 

142,090

 

 

Property management expense

 

 

20,173

 

 

 

17,886

 

 

 

17,696

 

 

 

15,842

 

 

 

14,888

 

 

General and administrative

 

 

19,668

 

 

 

19,369

 

 

 

19,828

 

 

 

16,950

 

 

 

16,679

 

 

Impairment and other

 

 

3,046

 

 

 

4,294

 

 

 

980

 

 

 

356

 

 

 

(3,974

)

 

Gain on sale of property, net of tax

 

 

(14,558

)

 

 

(13,047

)

 

 

(17,919

)

 

 

(14,484

)

 

 

(13,121

)

 

(Gains) losses on investments in equity securities, net

 

 

3,597

 

 

 

(4,319

)

 

 

7,002

 

 

 

3,140

 

 

 

(29,689

)

 

Other, net

 

 

2,654

 

 

 

1,508

 

 

 

1,903

 

 

 

(230

)

 

 

2,087

 

 

Joint venture management fees

 

 

(1,753

)

 

 

(1,354

)

 

 

(1,015

)

 

 

(771

)

 

 

 

 

(Income) loss from investments in unconsolidated joint ventures

 

 

2,110

 

 

 

(202

)

 

 

(11

)

 

 

(351

)

 

 

 

 

NOI (Total Portfolio)

 

 

340,589

 

 

 

323,694

 

 

 

315,196

 

 

 

306,081

 

 

 

295,472

 

 

Non-Same Store NOI

 

 

(35,406

)

 

 

(33,627

)

 

 

(30,805

)

 

 

(28,106

)

 

 

(24,442

)

 

Same Store NOI

 

$

305,183

 

 

$

290,067

 

 

$

284,391

 

 

$

277,975

 

 

$

271,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Same Store NOI, FY

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FY 2021

 

FY 2020

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

261,098

 

 

$

195,764

 

 

 

 

 

 

 

 

Net income available to participating securities

 

 

327

 

 

 

448

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

1,351

 

 

 

1,237

 

 

 

 

 

 

 

 

Interest expense

 

 

322,661

 

 

 

353,923

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

592,135

 

 

 

552,530

 

 

 

 

 

 

 

 

Property management expense

 

 

71,597

 

 

 

58,613

 

 

 

 

 

 

 

 

General and administrative

 

 

75,815

 

 

 

63,305

 

 

 

 

 

 

 

 

Impairment and other

 

 

8,676

 

 

 

696

 

 

 

 

 

 

 

 

Gain on sale of property, net of tax

 

 

(60,008

)

 

 

(54,594

)

 

 

 

 

 

 

 

(Gains) losses on investments in equity securities, net

 

 

9,420

 

 

 

(29,723

)

 

 

 

 

 

 

 

Other, net

 

 

5,835

 

 

 

86

 

 

 

 

 

 

 

 

Joint venture management fees

 

 

(4,893

)

 

 

 

 

 

 

 

 

 

 

Loss from investments in unconsolidated joint ventures

 

 

1,546

 

 

 

 

 

 

 

 

 

 

 

NOI (Total Portfolio)

 

 

1,285,560

 

 

 

1,142,285

 

 

 

 

 

 

 

 

Non-Same Store NOI

 

 

(127,944

)

 

 

(84,508

)

 

 

 

 

 

 

 

Same Store NOI

 

$

1,157,616

 

 

$

1,057,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2021

 

Q4 2020

 

FY 2021

 

FY 2020

 

Net income available to common stockholders

 

$

74,476

 

 

$

70,586

 

 

$

261,098

 

 

$

195,764

 

 

Net income available to participating securities

 

 

67

 

 

 

113

 

 

 

327

 

 

 

448

 

 

Non-controlling interests

 

 

328

 

 

 

431

 

 

 

1,351

 

 

 

1,237

 

 

Interest expense

 

 

79,121

 

 

 

95,382

 

 

 

322,661

 

 

 

353,923

 

 

Interest expense in unconsolidated joint ventures

 

 

540

 

 

 

 

 

 

1,209

 

 

 

 

 

Depreciation and amortization

 

 

151,660

 

 

 

142,090

 

 

 

592,135

 

 

 

552,530

 

 

Depreciation and amortization of real estate assets in unconsolidated joint ventures

 

 

565

 

 

 

 

 

 

1,304

 

 

 

 

 

EBITDA

 

 

306,757

 

 

 

308,602

 

 

 

1,180,085

 

 

 

1,103,902

 

 

Gain on sale of property, net of tax

 

 

(14,558

)

 

 

(13,121

)

 

 

(60,008

)

 

 

(54,594

)

 

Impairment on depreciated real estate investments

 

 

 

 

 

376

 

 

 

650

 

 

 

4,578

 

 

Net gain on sale of investments in unconsolidated joint ventures

 

 

(250

)

 

 

 

 

 

(1,050

)

 

 

 

 

EBITDAre

 

 

291,949

 

 

 

295,857

 

 

 

1,119,677

 

 

 

1,053,886

 

 

Share-based compensation expense

 

 

6,098

 

 

 

4,797

 

 

 

27,170

 

 

 

17,090

 

 

Severance

 

 

557

 

 

 

213

 

 

 

1,057

 

 

 

601

 

 

Casualty (gains) losses, net

 

 

3,046

 

 

 

(4,350

)

 

 

8,026

 

 

 

(3,882

)

 

(Gains) losses on investments in equity securities, net

 

 

3,597

 

 

 

(29,689

)

 

 

9,420

 

 

 

(29,723

)

 

Other, net

 

 

2,654

 

 

 

2,087

 

 

 

5,835

 

 

 

86

 

 

Adjusted EBITDAre

 

$

307,901

 

 

$

268,915

 

 

$

1,171,185

 

 

$

1,038,058

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Debt / Trailing Twelve Months (TTM) Adjusted EBITDAre

(in thousands, except for ratio) (unaudited)

 

 

 

 

 

 

 

 

 

As of

 

As of

 

 

 

December 31, 2021

 

December 31, 2020

 

Mortgage loans, net

 

$

3,055,853

 

 

$

4,820,098

 

 

Secured term loan, net

 

 

401,313

 

 

 

401,095

 

 

Unsecured notes, net

 

 

1,921,974

 

 

 

 

 

Term loan facility, net

 

 

2,478,122

 

 

 

2,470,907

 

 

Revolving facility

 

 

 

 

 

 

 

Convertible senior notes, net

 

 

141,397

 

 

 

339,404

 

 

Total Debt per Balance Sheet

 

 

7,998,659

 

 

 

8,031,504

 

 

Retained and repurchased certificates

 

 

(159,110

)

 

 

(247,526

)

 

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

 

 

(649,722

)

 

 

(250,204

)

 

Deferred financing costs, net

 

 

50,146

 

 

 

43,396

 

 

Unamortized discounts on note payable

 

 

13,605

 

 

 

7,885

 

 

Net Debt (A)

 

$

7,253,578

 

 

$

7,585,055

 

 

 

 

 

 

 

 

 

 

For the Trailing Twelve

 

For the Trailing Twelve

 

 

 

Months (TTM) Ended

 

Months (TTM) Ended

 

 

 

December 31, 2021

 

December 31, 2020

 

Adjusted EBITDAre (B)

 

$

1,171,185

 

 

$

1,038,058

 

 

 

 

 

 

 

 

Net Debt / TTM Adjusted EBITDAre (A / B)

 

 

6.2x

 

 

 

7.3x

 

 

 

 

 

 

 

 

(1)

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

 

Investor Relations Contact
Scott McLaughlin
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.

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