EX-99.12q32024supplemental.htmEX-99.1 Document
Table of Contents
Earnings Press Release
3
Consolidated Financial Statements
8
Schedule 1: Reconciliation of FFO, Core FFO, and AFFO
10
Schedule 2: Capital Structure Information
12
Schedule 3: Summary of Operating Information by Home Portfolio
16
Schedule 4: Home Characteristics by Market
19
Schedule 5: Same Store Operating Information by Market
20
Schedule 6: Cost to Maintain and Capital Expenditure Detail
27
Schedule 7: Adjusted Property Management and G&A Reconciliation
28
Schedule 8: Acquisitions, Dispositions, and Homebuilder Pipeline
29
Glossary and Reconciliations
32
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 2
Earnings Press Release
Invitation Homes Reports Third Quarter 2024 Results
Dallas, TX, October 30, 2024 — Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”), the nation’s premier single-family home leasing and management company, today announced its Q3 2024 financial and operating results.
Third Quarter 2024 Highlights
•Year over year, total revenues increased 6.9% to $660 million, property operating and maintenance costs increased 5.6% to $242 million, net income available to common stockholders decreased 27.8% to $95 million, and net income per diluted common share decreased 27.8% to $0.15.
•Year over year, Core FFO per share increased 6.8% to $0.47 and AFFO per share increased 7.2% to $0.38.
•Same Store NOI increased 3.9% year over year on 3.6% Same Store Core Revenues growth and 3.1% Same Store Core Operating Expenses growth.
•Same Store Average Occupancy was 97.0%, generally consistent with the prior year result.
•Same Store renewal rent growth of 4.2% and Same Store new lease rent growth of 1.7% drove Same Store blended rent growth of 3.6%.
•Acquisitions by the Company and the Company’s joint ventures totaled 926 homes for approximately $331 million while dispositions totaled 331 homes for approximately $128 million.
•The Company continued to improve the strength of its investment-grade balance sheet. Specifically:
◦As previously announced on September 23, 2024, Fitch Ratings upgraded the Company’s issuer and issue-level credit ratings to ‘BBB+’ from ‘BBB’ with a stable outlook.
◦As previously announced on September 9, 2024, the Company replaced its existing credit facility and lowered the cost of its debt with a new $3.5 billion senior unsecured credit facility, consisting of a $1.75 billion revolving line of credit and a $1.75 billion term loan, with each carrying two six-month extension options such that the final maturity date is September 2029, subject to certain conditions.
◦As previously announced on September 23, 2024, the Company closed a public offering of $500 million aggregate principal amount of 4.875% Senior Notes due 2035.
◦In addition, during September 2024, the Company amended certain interest rate swaps and entered into $1.4 billion of new interest rate swaps. As of September 30, 2024, the Company’s currently active swaps have a weighted average strike rate of 2.86% and are scheduled to terminate between November 30, 2024 and July 31, 2025, while its forward starting swaps, which will become active between December 31, 2024 and July 9, 2025 and mature between May 31, 2028 and May 31, 2029, have a weighted average strike rate of 2.95%.
•The Company experienced mostly limited damages to its homes in several markets from Hurricanes Beryl, Debby, and Helene, which it estimates at approximately $14.0 million of expenses, net of estimated insurance recoveries; subsequent to quarter end, the Company incurred losses and damages to homes in its Florida markets as a result of Hurricane Milton, with initial expense estimates totaling approximately $37.5 million, net of estimated insurance recoveries.
Comments from Chief Executive Officer Dallas Tanner
“We’re pleased to report another strong quarter, driven by year over year growth in total revenues of 6.9% and AFFO per share of 7.2%. We continue to believe our growth prospects, coupled with the attractive value proposition of single-family rentals compared to homeownership, create a constructive backdrop for the foreseeable future. Based on our solid year to date results and expectations for the remainder of the year, we have raised our full year 2024 Core FFO and AFFO per share guidance by a penny at the midpoint to $1.88 and $1.59 per share, respectively.”
Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures
Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States (“GAAP”). These measures are defined herein and, as applicable, reconciled to the most comparable GAAP measures.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 3
Financial Results
Net Income, FFO, Core FFO, and AFFO Per Share — Diluted
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Net income
$
0.15
$
0.21
$
0.51
$
0.64
FFO
0.37
0.40
1.14
1.23
Core FFO
0.47
0.44
1.41
1.32
AFFO
0.38
0.36
1.19
1.12
Net Income
Net income per common share — diluted for Q3 2024 was $0.15, compared to net income per common share — diluted of $0.21 for Q3 2023. Total revenues and total property operating and maintenance expenses for Q3 2024 were $660 million and $242 million, respectively, compared to $618 million and $229 million, respectively, for Q3 2023.
Net income per common share — diluted for YTD 2024 was $0.51, compared to net income per share — diluted of $0.64 for YTD 2023. Total revenues and total property operating and maintenance expenses for YTD 2024 were $1,960 million and $707 million, respectively, compared to $1,808 million and $652 million, respectively, for YTD 2023.
Core FFO
Year over year, Core FFO per share for Q3 2024 increased 6.8% to $0.47, while Core FFO per share for YTD 2024 increased 6.6% to $1.41, primarily due to NOI growth.
AFFO
Year over year, AFFO per share for Q3 2024 increased 7.2% to $0.38, while AFFO per share for YTD 2024 increased 6.0% to $1.19, primarily due to the increase in Core FFO per share described above.
Operating Results
Same Store Operating Results Snapshot
Number of homes in Same Store Portfolio:
77,186
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Core Revenues growth (year over year)
3.6
%
4.8
%
Core Operating Expenses growth (year over year)
3.1
%
5.6
%
NOI growth (year over year)
3.9
%
4.5
%
Average Occupancy
97.0
%
97.1
%
97.5
%
97.5
%
Bad Debt % of gross rental revenue
1.0
%
1.1
%
0.9
%
1.4
%
Turnover Rate
6.2
%
6.8
%
17.5
%
18.8
%
Rental Rate Growth (lease-over-lease):
Renewals
4.2
%
6.5
%
5.2
%
7.0
%
New Leases
1.7
%
4.6
%
2.1
%
5.5
%
Blended
3.6
%
5.9
%
4.3
%
6.5
%
Same Store NOI
For the Same Store Portfolio of 77,186 homes, Same Store NOI for Q3 2024 increased 3.9% year over year on Same Store Core Revenues growth of 3.6% and Same Store Core Operating Expenses growth of 3.1%. YTD 2024 Same Store NOI increased 4.5% year over year on Same Store Core Revenues growth of 4.8% and Same Store Core Operating Expenses growth of 5.6%.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 4
Same Store Core Revenues
Same Store Core Revenues growth for Q3 2024 of 3.6% year over year was primarily driven by a 3.7% increase in Average Monthly Rent, a 10 basis point year over year improvement in Bad Debt as a percentage of gross rental revenue, and a 2.4% increase in other income, net of resident recoveries, partially offset by a 10 basis point year over year decline in Average Occupancy.
YTD 2024 Same Store Core Revenues growth of 4.8% year over year was primarily driven by a 4.2% increase in Average Monthly Rent, a 50 basis point year over year improvement in Bad Debt as a percentage of gross rental revenue, and a 9.1% increase in other income, net of resident recoveries.
Same Store Core Operating Expenses
Same Store Core Operating Expenses for Q3 2024 increased 3.1% year over year, primarily attributable to a 5.3% increase in fixed expenses, partially offset by a 0.5% decrease in controllable expenses.
YTD 2024 Same Store Core Operating Expenses increased 5.6% year over year, primarily driven by a 8.4% increase in fixed expenses and a 0.8% increase in controllable expenses.
Investment and Property Management Activity
Acquisitions for Q3 2024 included 891 wholly owned homes for approximately $319 million and 35 homes for approximately $12 million in the Company’s joint ventures. Dispositions for Q3 2024 included 310 wholly owned homes for gross proceeds of approximately $119 million and 21 homes for gross proceeds of approximately $9 million in the Company’s joint ventures.
Year to date through Q3 2024, the Company acquired 1,591 wholly owned homes for $557 million and 108 homes for $37 million in the Company’s joint ventures. The company also sold 937 wholly owned homes for $378 million and 57 homes for $25 million in the Company’s joint ventures.
A summary of the Company’s owned and/or managed homes is included in the following table:
Summary of Homes Owned and/or Managed As Of 9/30/2024
Number of Homes Owned and/or Managed as of 6/30/2024
Acquired or Added In
Q3 2024
Disposed or Subtracted In Q3 2024
Number of Homes Owned and/or Managed as of 9/30/2024
Wholly owned homes
84,640
891
(310)
85,221
Joint venture owned homes
7,605
35
(21)
7,619
Managed-only homes
17,261
696
(41)
17,916
Total homes owned and/or managed
109,506
1,622
(372)
110,756
Balance Sheet and Capital Markets Activity
As of September 30, 2024, the Company had $2,027 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 September 30, 2024 was $9,098 million, consisting of $7,075 million of unsecured debt and $2,023 million of secured debt. Net debt / TTM adjusted EBITDAre was 5.4x at September 30, 2024, a slight decrease from 5.5x as of December 31, 2023. As of September 30, 2024, 99.6% of the Company’s total debt was fixed rate or swapped to fixed rate and 83.8% of its wholly owned homes were unencumbered.
During Q3 2024, the Company continued to improve the strength of its investment-grade balance sheet. Specifically:
•As previously announced, on September 23, 2024, Fitch Ratings upgraded the Company’s issuer and issue-level credit ratings to ‘BBB+’ from ‘BBB’ with a stable outlook.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 5
•As previously announced, on September 9, 2024, the Company replaced its existing credit facility and lowered the cost of its debt with a new $3.5 billion senior unsecured credit facility, consisting of a $1.75 billion revolving line of credit and a $1.75 billion term loan, both maturing on September 9, 2028, with two six-month extension options, subject to certain conditions.
•As previously announced, on September 23, 2024, the Company closed a public offering of $500 million aggregate principal amount of 4.875% Senior Notes due 2035.
•In addition, during September 2024, the Company amended certain interest rate swaps and entered into $1.4 billion of new interest rate swaps. As of September 30, 2024, the Company’s currently active swaps have a weighted average strike rate of 2.86% and are scheduled to terminate between November 30, 2024 and July 31, 2025, while its forward starting swaps, which will become active between December 31, 2024 and July 9, 2025 and mature between May 31, 2028 and May 31, 2029, have a weighted average strike rate of 2.95%.
FY 2024 Guidance Details
The Company has revised its full year 2024 guidance expectations, as outlined in the following table:
FY 2024 Guidance
FY 2024 Current Guidance Range
FY 2024 Midpoint
Current
Prior
(As of July 2024)
Change
G1Core FFO per share — diluted
$1.86 to $1.90
$1.88
$1.87
$0.01
G2AFFO per share — diluted
$1.57 to $1.61
$1.59
$1.58
$0.01
G3Same Store Core Revenues growth (1)
4.0% to 4.5%
4.25%
4.875%
-62.5 bps
G4Same Store Core Operating Expenses growth (2)
3.25% to 4.25%
3.75%
5.75%
-200.0 bps
G5Same Store NOI growth
4.0% to 5.0%
4.50%
4.5%
0.0 bps
G6Wholly owned acquisitions
$600 million to $1,000 million
$800 million
$800 million
$ —
G7JV acquisitions
$100 million to $300 million
$200 million
$200 million
$ —
G8Wholly owned dispositions
$400 million to $600 million
$500 million
$500 million
$ —
(1)Guidance assumes FY 2024 Average Occupancy is similar to FY 2023 Average Occupancy. Guidance assumes average Bad Debt for FY 2024 in a range of 65 to 95 basis points.
(2)Guidance assumes (i) FY 2024 property taxes expense growth in a range of 5.0% to 6.5% year over year, reflecting an improvement in expectations from the prior guidance range of 8.0% to 9.5%, primarily due to favorable information received to date from Florida and Georgia; and (ii) FY 2024 insurance expense growth of approximately 7.5% year over year.
The Company does not provide guidance for the most comparable GAAP financial measures of net income (loss), total revenues, and property operating and maintenance expense. Additionally, a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses growth, and Same Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because the Company is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company’s ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on the Company’s GAAP results for the guidance period.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 6
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 2:00 p.m. Eastern Time on October 31, 2024, to review third quarter of 2024 results, discuss recent events, and conduct a question-and-answer session. The domestic dial-in number is 1-888-330-2384, and the international dial-in number is 1-240-789-2701. The conference ID is 7714113.
Listen-only participants are encouraged to join the conference call via a live audio webcast, which is available online from the Company’s investor relations website at www.invh.com. Following the conclusion of the earnings call, the Company will post a replay of the webcast to its website for one year.
Supplemental Information
The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes’ Investor Relations website at www.invh.com.
About Invitation Homes
Invitation Homes, an S&P 500 company, is the nation’s premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The Company’s mission, “Together with you, we make a house a home,” reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents’ living experiences.
Investor Relations Contact
Media Relations Contact
Scott McLaughlin
Kristi DesJarlais
844.456.INVH (4684)
844.456.INVH (4684)
IR@InvitationHomes.com
Media@InvitationHomes.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Company’s expectations regarding the performance of the Company’s business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words.
Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company’s business model, macroeconomic factors beyond the Company’s control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association and insurance costs, poor resident selection and defaults and non-renewals by the Company’s residents, the Company’s dependence on third parties for key services, risks related to the evaluation of properties, performance of the Company’s information technology systems, development and use of artificial intelligence, risks related to the Company’s indebtedness, and risks related to the potential negative impact of unfavorable global and United States economic conditions (including inflation), uncertainty in financial markets (including as a result of events affecting financial institutions), geopolitical tensions, natural disasters, climate change, and public health crises, on the Company’s financial condition, results of operations, cash flows, business, associates, and residents.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of its Annual Report on Form 10-K for the year ended December 31, 2023 (the “Annual Report”), as such factors may be updated from time to time in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release, in the Annual Report, and in the Company’s other periodic filings.
The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 7
Consolidated Balance Sheets
($ in thousands, except shares and per share data)
September 30, 2024
December 31, 2023
(unaudited)
Assets:
Investments in single-family residential properties, net
$
17,284,631
$
17,289,214
Cash and cash equivalents
1,027,199
700,618
Restricted cash
218,273
196,866
Goodwill
258,207
258,207
Investments in unconsolidated joint ventures
244,647
247,166
Other assets, net
599,891
528,896
Total assets
$
19,632,848
$
19,220,967
Liabilities:
Mortgage loans, net
$
1,614,220
$
1,627,256
Secured term loan, net
401,595
401,515
Unsecured notes, net
3,799,034
3,305,467
Term loan facilities, net
2,444,054
3,211,814
Revolving facility
750,000
—
Accounts payable and accrued expenses
398,894
200,590
Resident security deposits
180,484
180,455
Other liabilities
92,905
103,435
Total liabilities
9,681,186
9,030,532
Equity:
Stockholders’ equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of September 30, 2024 and December 31, 2023
—
—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 612,605,478 and 611,958,239 outstanding as of September 30, 2024 and December 31, 2023, respectively
6,126
6,120
Additional paid-in capital
11,164,240
11,156,736
Accumulated deficit
(1,275,601)
(1,070,586)
Accumulated other comprehensive income
21,310
63,701
Total stockholders’ equity
9,916,075
10,155,971
Non-controlling interests
35,587
34,464
Total equity
9,951,662
10,190,435
Total liabilities and equity
$
19,632,848
$
19,220,967
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 8
Consolidated Statements of Operations
($ in thousands, except shares and per share amounts) (unaudited)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Revenues:
Rental revenues
$
575,462
$
555,270
$
1,723,757
$
1,633,672
Other property income
65,880
59,021
187,157
164,058
Management fee revenues
18,980
3,404
48,898
10,227
Total revenues
660,322
617,695
1,959,812
1,807,957
Expenses:
Property operating and maintenance
242,228
229,488
706,809
651,793
Property management expense
34,382
23,399
98,252
70,563
General and administrative
21,727
22,714
66,673
59,957
Interest expense
91,060
86,736
270,912
243,408
Depreciation and amortization
180,479
170,696
532,414
501,128
Casualty losses, impairment, and other
20,872
2,496
35,362
5,527
Total expenses
590,748
535,529
1,710,422
1,532,376
Gains (losses) on investments in equity and other securities, net
(257)
(499)
1,038
113
Other, net
(9,345)
(2,533)
(57,384)
(7,968)
Gain on sale of property, net of tax
47,766
57,989
141,531
134,448
Losses from investments in unconsolidated joint ventures
(12,160)
(4,902)
(22,780)
(11,087)
Net income
95,578
132,221
311,795
391,087
Net income attributable to non-controlling interests
(309)
(403)
(988)
(1,163)
Net income attributable to common stockholders
95,269
131,818
310,807
389,924
Net income available to participating securities
(185)
(181)
(584)
(518)
Net income available to common stockholders — basic and diluted
$
95,084
$
131,637
$
310,223
$
389,406
Weighted average common shares outstanding — basic
612,674,802
612,000,811
612,508,300
611,849,302
Weighted average common shares outstanding — diluted
613,645,188
613,580,042
613,759,171
613,155,041
Net income per common share — basic
$
0.16
$
0.22
$
0.51
$
0.64
Net income per common share — diluted
$
0.15
$
0.21
$
0.51
$
0.64
Dividends declared per common share
$
0.28
$
0.26
$
0.84
$
0.78
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 9
Supplemental Schedule 1
Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)
FFO Reconciliation
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Net income available to common stockholders
$
95,084
$
131,637
$
310,223
$
389,406
Net income available to participating securities
185
181
584
518
Non-controlling interests
309
403
988
1,163
Depreciation and amortization on real estate assets
176,174
167,921
521,411
493,027
Impairment on depreciated real estate investments
270
83
330
342
Net gain on sale of previously depreciated investments in real estate
(47,766)
(57,989)
(141,531)
(134,448)
Depreciation and net gain on sale of investments in unconsolidated joint ventures
4,060
2,111
10,076
6,425
FFO
$
228,316
$
244,347
$
702,081
$
756,433
Core FFO Reconciliation
Q3 2024
Q3 2023
YTD 2024
YTD 2023
FFO
$
228,316
$
244,347
$
702,081
$
756,433
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives (1)
14,085
9,561
32,207
25,875
Share-based compensation expense
5,417
8,929
20,809
21,493
Legal settlements (2)
17,500
2,000
77,000
2,000
Severance expense
209
392
388
916
Casualty losses, net (1)(3)
20,729
2,429
35,174
5,214
(Gains) losses on investments in equity and other securities, net
257
499
(1,038)
(113)
Core FFO
$
286,513
$
268,157
$
866,621
$
811,818
AFFO Reconciliation
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Core FFO
$
286,513
$
268,157
$
866,621
$
811,818
Recurring capital expenditures (1)
(51,505)
(49,007)
(135,262)
(122,700)
AFFO
$
235,008
$
219,150
$
731,359
$
689,118
Net income available to common stockholders
Weighted average common shares outstanding — diluted
613,645,188
613,580,042
613,759,171
613,155,041
Net income per common share — diluted
$
0.15
$
0.21
$
0.51
$
0.64
FFO, Core FFO, and AFFO
Weighted average common shares and OP Units outstanding — diluted
615,913,139
615,699,631
615,987,978
615,208,781
FFO per share — diluted
$
0.37
$
0.40
$
1.14
$
1.23
Core FFO per share — diluted
$
0.47
$
0.44
$
1.41
$
1.32
AFFO per share — diluted
$
0.38
$
0.36
$
1.19
$
1.12
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 10
Supplemental Schedule 1 (Continued)
(1)Includes the Company’s share from unconsolidated joint ventures.
(2)For Q3 2024 and YTD 2024, includes $17.5 million and $77.0 million, respectively, of settlement costs related to resolution of an inquiry from the Federal Trade Commission and the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs.
(3)For Q3 2024 and YTD 2024, includes $14.0 million of estimated losses and damages, net of estimated insurance recoveries, related to Hurricanes Beryl, Debby, and Helene.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 11
Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
Weighted Average Amounts for Net Income
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Common shares — basic
612,674,802
612,000,811
612,508,300
611,849,302
Shares potentially issuable from vesting/conversion of equity-based awards
970,386
1,579,231
1,250,871
1,305,739
Total common shares — diluted
613,645,188
613,580,042
613,759,171
613,155,041
Weighted average amounts for FFO, Core FFO, and AFFO
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Common shares — basic
612,674,802
612,000,811
612,508,300
611,849,302
OP units — basic
1,979,009
1,869,483
1,945,886
1,824,297
Shares potentially issuable from vesting/conversion of equity-based awards
1,259,328
1,829,337
1,533,792
1,535,182
Total common shares and units — diluted
615,913,139
615,699,631
615,987,978
615,208,781
Period end amounts for Core FFO and AFFO
September 30, 2024
Common shares
612,605,478
OP units
1,979,009
Shares potentially issuable from vesting/conversion of equity-based awards
1,974,929
Total common shares and units — diluted
616,559,416
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 12
Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — As of September 30, 2024
($ in thousands) (unaudited)
Wtd Avg
Wtd Avg
Interest
Years to
Debt Structure
Balance
% of Total
Rate (1)
Maturity (2)
Secured:
Fixed (3)
$
1,392,927
15.3
%
4.0
%
3.8
Floating — swapped to fixed
630,162
6.9
%
4.2
%
1.3
Floating
—
—
%
—
%
—
Total secured
2,023,089
22.2
%
4.1
%
3.0
Unsecured:
Fixed
3,850,000
42.3
%
3.6
%
7.4
Floating — swapped to fixed
3,189,838
35.1
%
3.9
%
4.9
Floating
35,162
0.4
%
5.7
%
4.9
Total unsecured
7,075,000
77.8
%
3.7
%
6.2
Total Debt:
Fixed + floating swapped to fixed (3)
9,062,927
99.6
%
3.8
%
5.5
Floating
35,162
0.4
%
5.7
%
4.9
Total debt
9,098,089
100.0
%
3.8
%
5.5
Discount/amortization on Note Payable
(25,100)
Deferred financing costs, net
(64,086)
Total debt per Balance Sheet
9,008,903
Retained and repurchased certificates
(87,063)
Cash, ex-security deposits and letters of credit (4)
(1,062,179)
Deferred financing costs, net
64,086
Unamortized discount on note payable
25,100
Net debt
$
7,948,847
Leverage Ratios
September 30, 2024
Net Debt / TTM Adjusted EBITDAre
5.4
x
Credit Ratings
Ratings
Outlook
Fitch Ratings
BBB+
Stable
Moody’s Investors Service
Baa2
Stable
S&P Global Ratings
BBB
Stable
Unsecured Facilities Covenant Compliance (5)
Unsecured Public Bond Covenant Compliance (6)
Actual
Requirement
Actual
Requirement
Total leverage ratio
30.1
%
≤ 60%
Aggregate debt ratio
37.7
%
≤ 65%
Secured leverage ratio
5.8
%
≤ 45%
Secured debt ratio
8.1
%
≤ 40%
Unencumbered leverage ratio
30.1
%
≤ 60%
Unencumbered assets ratio
290.2
%
≥ 150%
Fixed charge coverage ratio
4.0 x
≥ 1.5x
Debt service ratio
4.2x
≥ 1.5x
Unsecured interest coverage ratio
5.0 x
≥ 1.75x
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 13
Supplemental Schedule 2(b) (Continued)
(1)Includes the impact of interest rate swaps in place and effective as of September 30, 2024. For additional information regarding the Company’s interest rate swaps, please refer to Note 8—Derivative Instruments in the Company’s most recently filed Form 10-Q or Form 10-K.
(2)Assumes all extension options are exercised.
(3)For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.
(4)Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit.
(5)Covenant calculations are specifically defined in the Company’s Amended and Restated Revolving Credit and Term Loan Agreement, and summarized in the “Glossary and Reconciliations” section below. For the purpose of calculating property value in applicable covenant metrics, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
(6)Covenant calculations are specifically defined in the Company’s Supplemental Indentures to the Base Indenture for its Senior Notes, which are summarized in the “Glossary and Reconciliations” section below. Property values for the purpose of applicable covenant metrics are calculated based on undepreciated book value.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 14
Supplemental Schedule 2(c)
Debt Maturity Schedule — As of September 30, 2024
($ in thousands) (unaudited)
Revolving
Secured
Unsecured
Credit
% of
Debt Maturities, with Extensions (1)
Debt
Debt
Facility
Balance
Total
2024
$
—
$
—
$
—
$
—
—
%
2025
—
—
—
—
—
%
2026
630,162
—
—
630,162
6.9
%
2027
989,881
—
—
989,881
10.9
%
2028
—
750,000
—
750,000
8.2
%
2029
—
2,475,000
750,000
3,225,000
35.4
%
2030
—
450,000
—
450,000
4.9
%
2031
403,046
650,000
—
1,053,046
11.7
%
2032
—
600,000
—
600,000
6.6
%
2033
—
350,000
—
350,000
3.8
%
2034
—
400,000
—
400,000
4.5
%
2035
—
500,000
—
500,000
5.5
%
2036
—
150,000
—
150,000
1.6
%
2,023,089
6,325,000
750,000
9,098,089
100.0
%
Unamortized discount on note payable
(968)
(24,132)
—
(25,100)
Deferred financing costs, net
(6,306)
(57,780)
—
(64,086)
Total per Balance Sheet
$
2,015,815
$
6,243,088
$
750,000
$
9,008,903
.
(1)Assumes all extension options are exercised.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 15
Supplemental Schedule 3(a)
Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)
Number of Homes, period-end
Q3 2024
Total Portfolio
85,221
Same Store Portfolio
77,186
Same Store % of Total
90.6
%
Core Revenues
Q3 2024
Q3 2023
Change YoY
YTD 2024
YTD 2023
Change YoY
Total Portfolio
$
598,930
$
577,650
3.7
%
$
1,793,605
$
1,696,347
5.7
%
Same Store Portfolio
555,279
535,877
3.6
%
1,662,737
1,586,094
4.8
%
Core Operating Expenses
Q3 2024
Q3 2023
Change YoY
YTD 2024
YTD 2023
Change YoY
Total Portfolio
$
199,816
$
192,847
3.6
%
$
589,500
$
550,410
7.1
%
Same Store Portfolio
181,685
176,258
3.1
%
536,115
507,656
5.6
%
Net Operating Income
Q3 2024
Q3 2023
Change YoY
YTD 2024
YTD 2023
Change YoY
Total Portfolio
$
399,114
$
384,803
3.7
%
$
1,204,105
$
1,145,937
5.1
%
Same Store Portfolio
373,594
359,619
3.9
%
1,126,622
1,078,438
4.5
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 16
Supplemental Schedule 3(b)
Same Store Portfolio Core Operating Detail
($ in thousands) (unaudited)
Change
Change
Change
Q3 2024
Q3 2023
YoY
Q2 2024
Seq
YTD 2024
YTD 2023
YoY
Revenues:
Rental revenues (1)
$
534,005
$
515,106
3.7
%
$
534,854
(0.2)
%
$
1,598,897
$
1,527,556
4.7
%
Other property income, net (1)(2)
21,274
20,771
2.4
%
21,539
(1.2)
%
63,840
58,538
9.1
%
Core Revenues
555,279
535,877
3.6
%
556,393
(0.2)
%
1,662,737
1,586,094
4.8
%
Fixed Expenses:
Property taxes
93,329
88,207
5.8
%
95,549
(2.3)
%
285,539
261,540
9.2
%
Insurance expenses
10,790
9,988
8.0
%
10,750
0.4
%
31,603
29,484
7.2
%
HOA expenses
10,207
10,362
(1.5)
%
9,988
2.2
%
31,359
30,464
2.9
%
Total Fixed Expenses
114,326
108,557
5.3
%
116,287
(1.7)
%
348,501
321,488
8.4
%
Controllable Expenses:
Repairs and maintenance, net (3)
29,802
27,258
9.3
%
26,564
12.2
%
77,289
70,110
10.2
%
Personnel, leasing and marketing
20,169
21,025
(4.1)
%
21,182
(4.8)
%
63,003
64,891
(2.9)
%
Turnover, net (3)
11,024
12,135
(9.2)
%
10,037
9.8
%
29,730
32,399
(8.2)
%
Utilities and property administrative, net (3)
6,364
7,283
(12.6)
%
5,400
17.9
%
17,592
18,768
(6.3)
%
Total Controllable Expenses
67,359
67,701
(0.5)
%
63,183
6.6
%
187,614
186,168
0.8
%
Core Operating Expenses
181,685
176,258
3.1
%
179,470
1.2
%
536,115
507,656
5.6
%
Net Operating Income
$
373,594
$
359,619
3.9
%
$
376,923
(0.9)
%
$
1,126,622
$
1,078,438
4.5
%
(1)All rental revenues and other property income are reflected net of Bad Debt, which as a percentage of gross rental revenue, improved by 10 basis points from Q3 2023 to Q3 2024.
(2)Represents other property income net of all resident recoveries, which are reimbursements of charges for which residents are responsible. Same Store resident recoveries totaled $38,824, $32,878, $33,994, $107,287, and $93,557 for Q3 2024, Q3 2023, Q2 2024, YTD 2024, and YTD 2023, respectively.
(3)These expenses are presented net of applicable resident recoveries.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 17
Supplemental Schedule 3(c)
Same Store Quarterly Operating Trends
(unaudited)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Average Occupancy
97.0
%
97.6
%
97.9
%
97.3
%
97.1
%
Turnover Rate
6.2
%
6.2
%
5.2
%
5.5
%
6.8
%
Trailing four quarters Turnover Rate
23.1
%
23.7
%
24.2
%
24.3
%
N/A
Average Monthly Rent
$
2,406
$
2,384
$
2,361
$
2,347
$
2,321
Rental Rate Growth (lease-over-lease):
Renewals
4.2
%
5.6
%
5.8
%
6.7
%
6.5
%
New leases
1.7
%
3.6
%
0.8
%
(0.4)
%
4.6
%
Blended
3.6
%
5.0
%
4.4
%
4.3
%
5.9
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 18
Supplemental Schedule 4
Wholly Owned Portfolio Characteristics — As of and for the Quarter Ended September 30, 2024 (1)
(unaudited)
Number of Homes
Average Occupancy
Average Monthly Rent
Average Monthly Rent PSF
Percent of Revenue
Western United States:
Southern California
7,405
96.4
%
$
3,103
$
1.82
11.2
%
Northern California
4,221
97.5
%
2,737
1.73
5.8
%
Seattle
4,007
97.1
%
2,874
1.50
5.8
%
Phoenix
9,258
96.6
%
2,055
1.21
9.6
%
Las Vegas
3,411
96.4
%
2,198
1.12
3.8
%
Denver
2,734
96.9
%
2,560
1.39
3.4
%
Western US Subtotal
31,036
96.7
%
2,565
1.46
39.6
%
Florida:
South Florida
8,238
96.1
%
3,021
1.62
12.1
%
Tampa
9,485
93.9
%
2,291
1.22
10.6
%
Orlando
6,792
95.9
%
2,245
1.20
7.7
%
Jacksonville
1,998
96.8
%
2,179
1.10
2.2
%
Florida Subtotal
26,513
95.3
%
2,502
1.33
32.6
%
Southeast United States:
Atlanta
12,691
94.6
%
2,042
0.99
12.5
%
Carolinas
5,876
93.8
%
2,060
0.97
5.7
%
Southeast US Subtotal
18,567
94.3
%
2,047
0.98
18.2
%
Texas:
Houston
2,324
95.1
%
1,907
0.96
2.2
%
Dallas
3,118
92.6
%
2,261
1.09
3.4
%
Texas Subtotal
5,442
93.7
%
2,105
1.04
5.6
%
Midwest United States:
Chicago
2,480
96.7
%
2,399
1.49
2.8
%
Minneapolis
1,064
95.9
%
2,317
1.18
1.2
%
Midwest US Subtotal
3,544
96.5
%
2,375
1.39
4.0
%
Other (2):
119
37.5
%
2,081
1.01
—
%
Total / Average
85,221
95.5
%
$
2,397
$
1.27
100.0
%
Same Store Total / Average
77,186
97.0
%
$
2,406
$
1.28
92.6
%
(1)All data is for the total wholly owned portfolio, unless otherwise noted.
(2)Represents homes located outside of the Company’s 16 core markets; as of September 30, 2024, these include 106 homes located in Nashville, and 13 homes located in other markets that are generally being held for sale.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 19
Supplemental Schedule 5(a)
Same Store Core Revenues Growth Summary — YoY Quarter
($ in thousands, except avg. monthly rent) (unaudited)
Avg. Monthly Rent
Average Occupancy
Core Revenues
YoY, Q3 2024
# Homes
Q3 2024
Q3 2023
Change
Q3 2024
Q3 2023
Change
Q3 2024
Q3 2023
Change
Western United States:
Southern California
7,020
$
3,103
$
2,987
3.9
%
98.1
%
97.6
%
0.5
%
$
65,174
$
61,996
5.1
%
Northern California
3,952
2,734
2,653
3.1
%
98.6
%
97.5
%
1.1
%
32,554
31,038
4.9
%
Seattle
3,774
2,887
2,793
3.4
%
97.7
%
97.3
%
0.4
%
32,641
31,354
4.1
%
Phoenix
8,433
2,043
1,991
2.6
%
97.0
%
97.1
%
(0.1)
%
52,111
51,086
2.0
%
Las Vegas
2,923
2,203
2,165
1.8
%
97.1
%
95.9
%
1.2
%
19,428
18,739
3.7
%
Denver
2,310
2,559
2,487
2.9
%
97.6
%
97.8
%
(0.2)
%
17,917
17,492
2.4
%
Western US Subtotal
28,412
2,574
2,495
3.2
%
97.6
%
97.2
%
0.4
%
219,825
211,705
3.8
%
Florida:
South Florida
7,794
3,056
2,902
5.3
%
96.9
%
97.1
%
(0.2)
%
70,758
67,791
4.4
%
Tampa
8,094
2,291
2,217
3.3
%
96.4
%
96.7
%
(0.3)
%
55,799
53,984
3.4
%
Orlando
6,218
2,245
2,164
3.7
%
96.7
%
96.9
%
(0.2)
%
42,250
41,006
3.0
%
Jacksonville
1,901
2,172
2,122
2.4
%
97.0
%
96.5
%
0.5
%
12,472
12,197
2.3
%
Florida Subtotal
24,007
2,519
2,419
4.1
%
96.7
%
96.9
%
(0.2)
%
181,279
174,978
3.6
%
Southeast United States:
Atlanta
11,775
2,038
1,962
3.9
%
96.3
%
97.1
%
(0.8)
%
70,527
68,348
3.2
%
Carolinas
5,189
2,055
1,988
3.4
%
96.8
%
97.4
%
(0.6)
%
32,040
30,951
3.5
%
Southeast US Subtotal
16,964
2,043
1,970
3.7
%
96.4
%
97.2
%
(0.8)
%
102,567
99,299
3.3
%
Texas:
Houston
1,808
1,881
1,829
2.8
%
97.2
%
97.1
%
0.1
%
10,299
9,983
3.2
%
Dallas
2,491
2,267
2,200
3.0
%
96.2
%
96.4
%
(0.2)
%
16,931
16,493
2.7
%
Texas Subtotal
4,299
2,104
2,043
3.0
%
96.6
%
96.7
%
(0.1)
%
27,230
26,476
2.8
%
Midwest United States:
Chicago
2,452
2,399
2,307
4.0
%
97.3
%
96.8
%
0.5
%
17,128
16,349
4.8
%
Minneapolis
1,052
2,319
2,255
2.8
%
96.6
%
96.6
%
—
%
7,250
7,070
2.5
%
Midwest US Subtotal
3,504
2,375
2,291
3.7
%
97.1
%
96.7
%
0.4
%
24,378
23,419
4.1
%
Total / Average
77,186
$
2,406
$
2,321
3.7
%
97.0
%
97.1
%
(0.1)
%
$
555,279
$
535,877
3.6
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 20
Supplemental Schedule 5(a) (Continued)
Same Store Core Revenues Growth Summary — Sequential Quarter
($ in thousands, except avg. monthly rent) (unaudited)
Avg. Monthly Rent
Average Occupancy
Core Revenues
Seq, Q3 2024
# Homes
Q3 2024
Q2 2024
Change
Q3 2024
Q2 2024
Change
Q3 2024
Q2 2024
Change
Western United States:
Southern California
7,020
$
3,103
$
3,071
1.0
%
98.1
%
98.5
%
(0.4)
%
$
65,174
$
64,943
0.4
%
Northern California
3,952
2,734
2,709
0.9
%
98.6
%
98.5
%
0.1
%
32,554
32,385
0.5
%
Seattle
3,774
2,887
2,867
0.7
%
97.7
%
98.4
%
(0.7)
%
32,641
32,751
(0.3)
%
Phoenix
8,433
2,043
2,034
0.4
%
97.0
%
97.7
%
(0.7)
%
52,111
52,737
(1.2)
%
Las Vegas
2,923
2,203
2,185
0.8
%
97.1
%
97.7
%
(0.6)
%
19,428
19,514
(0.4)
%
Denver
2,310
2,559
2,538
0.8
%
97.6
%
98.4
%
(0.8)
%
17,917
18,026
(0.6)
%
Western US Subtotal
28,412
2,574
2,553
0.8
%
97.6
%
98.2
%
(0.6)
%
219,825
220,356
(0.2)
%
Florida:
South Florida
7,794
3,056
3,018
1.3
%
96.9
%
97.4
%
(0.5)
%
70,758
70,627
0.2
%
Tampa
8,094
2,291
2,281
0.4
%
96.4
%
97.3
%
(0.9)
%
55,799
56,188
(0.7)
%
Orlando
6,218
2,245
2,228
0.8
%
96.7
%
97.2
%
(0.5)
%
42,250
42,247
—
%
Jacksonville
1,901
2,172
2,163
0.4
%
97.0
%
97.6
%
(0.6)
%
12,472
12,579
(0.9)
%
Florida Subtotal
24,007
2,519
2,497
0.9
%
96.7
%
97.3
%
(0.6)
%
181,279
181,641
(0.2)
%
Southeast United States:
Atlanta
11,775
2,038
2,015
1.1
%
96.3
%
97.1
%
(0.8)
%
70,527
70,764
(0.3)
%
Carolinas
5,189
2,055
2,037
0.9
%
96.8
%
97.5
%
(0.7)
%
32,040
31,998
0.1
%
Southeast US Subtotal
16,964
2,043
2,022
1.0
%
96.4
%
97.3
%
(0.9)
%
102,567
102,762
(0.2)
%
Texas:
Houston
1,808
1,881
1,872
0.5
%
97.2
%
97.6
%
(0.4)
%
10,299
10,315
(0.2)
%
Dallas
2,491
2,267
2,249
0.8
%
96.2
%
97.5
%
(1.3)
%
16,931
17,046
(0.7)
%
Texas Subtotal
4,299
2,104
2,090
0.7
%
96.6
%
97.5
%
(0.9)
%
27,230
27,361
(0.5)
%
Midwest United States:
Chicago
2,452
2,399
2,369
1.3
%
97.3
%
97.7
%
(0.4)
%
17,128
17,001
0.7
%
Minneapolis
1,052
2,319
2,298
0.9
%
96.6
%
97.3
%
(0.7)
%
7,250
7,272
(0.3)
%
Midwest US Subtotal
3,504
2,375
2,348
1.1
%
97.1
%
97.6
%
(0.5)
%
24,378
24,273
0.4
%
Total / Average
77,186
$
2,406
$
2,384
0.9
%
97.0
%
97.6
%
(0.6)
%
$
555,279
$
556,393
(0.2)
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 21
Supplemental Schedule 5(a) (Continued)
Same Store Core Revenues Growth Summary — YTD
($ in thousands, except avg. monthly rent) (unaudited)
Avg. Monthly Rent
Average Occupancy
Core Revenues
YoY, YTD 2024
# Homes
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
Western United States:
Southern California
7,020
$
3,074
$
2,947
4.3
%
98.3
%
97.9
%
0.4
%
$
194,130
$
180,994
7.3
%
Northern California
3,952
2,709
2,628
3.1
%
98.5
%
97.8
%
0.7
%
96,795
92,031
5.2
%
Seattle
3,774
2,863
2,766
3.5
%
98.1
%
97.6
%
0.5
%
97,645
92,893
5.1
%
Phoenix
8,433
2,032
1,964
3.5
%
97.6
%
97.6
%
—
%
157,357
152,153
3.4
%
Las Vegas
2,923
2,188
2,149
1.8
%
97.5
%
96.4
%
1.1
%
58,346
55,429
5.3
%
Denver
2,310
2,539
2,464
3.0
%
98.0
%
97.8
%
0.2
%
53,746
51,995
3.4
%
Western US Subtotal
28,412
2,553
2,466
3.5
%
98.0
%
97.6
%
0.4
%
658,019
625,495
5.2
%
Florida:
South Florida
7,794
3,017
2,848
5.9
%
97.3
%
97.7
%
(0.4)
%
211,252
200,215
5.5
%
Tampa
8,094
2,277
2,183
4.3
%
97.1
%
97.4
%
(0.3)
%
167,854
160,780
4.4
%
Orlando
6,218
2,226
2,132
4.4
%
97.1
%
97.6
%
(0.5)
%
126,317
121,850
3.7
%
Jacksonville
1,901
2,160
2,100
2.9
%
97.4
%
97.2
%
0.2
%
37,538
36,407
3.1
%
Florida Subtotal
24,007
2,495
2,379
4.9
%
97.2
%
97.5
%
(0.3)
%
542,961
519,252
4.6
%
Southeast United States:
Atlanta
11,775
2,016
1,930
4.5
%
97.1
%
97.3
%
(0.2)
%
211,552
201,314
5.1
%
Carolinas
5,189
2,036
1,959
3.9
%
97.4
%
97.7
%
(0.3)
%
95,610
91,487
4.5
%
Southeast US Subtotal
16,964
2,022
1,939
4.3
%
97.2
%
97.4
%
(0.2)
%
307,162
292,801
4.9
%
Texas:
Houston
1,808
1,868
1,811
3.1
%
97.5
%
97.2
%
0.3
%
30,864
29,774
3.7
%
Dallas
2,491
2,249
2,173
3.5
%
97.1
%
97.1
%
—
%
50,909
49,070
3.7
%
Texas Subtotal
4,299
2,088
2,021
3.3
%
97.3
%
97.1
%
0.2
%
81,773
78,844
3.7
%
Midwest United States:
Chicago
2,452
2,370
2,275
4.2
%
97.7
%
97.6
%
0.1
%
51,094
48,583
5.2
%
Minneapolis
1,052
2,299
2,227
3.2
%
96.9
%
96.9
%
—
%
21,728
21,119
2.9
%
Midwest US Subtotal
3,504
2,349
2,261
3.9
%
97.5
%
97.4
%
0.1
%
72,822
69,702
4.5
%
Total / Average
77,186
$
2,384
$
2,289
4.2
%
97.5
%
97.5
%
—
%
$
1,662,737
$
1,586,094
4.8
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 22
Supplemental Schedule 5(b)
Same Store NOI Growth and Margin Summary — YoY Quarter
($ in thousands) (unaudited)
Core Revenues
Core Operating Expenses
Net Operating Income
Core NOI Margin
YoY, Q3 2024
Q3 2024
Q3 2023
Change
Q3 2024
Q3 2023
Change
Q3 2024
Q3 2023
Change
Q3 2024
Q3 2023
Western United States:
Southern California
$
65,174
$
61,996
5.1
%
$
18,194
$
18,474
(1.5)
%
$
46,980
$
43,522
7.9
%
72.1
%
70.2
%
Northern California
32,554
31,038
4.9
%
9,018
8,634
4.4
%
23,536
22,404
5.1
%
72.3
%
72.2
%
Seattle
32,641
31,354
4.1
%
8,359
8,125
2.9
%
24,282
23,229
4.5
%
74.4
%
74.1
%
Phoenix
52,111
51,086
2.0
%
11,134
10,952
1.7
%
40,977
40,134
2.1
%
78.6
%
78.6
%
Las Vegas
19,428
18,739
3.7
%
4,643
4,847
(4.2)
%
14,785
13,892
6.4
%
76.1
%
74.1
%
Denver
17,917
17,492
2.4
%
3,841
3,549
8.2
%
14,076
13,943
1.0
%
78.6
%
79.7
%
Western US Subtotal
219,825
211,705
3.8
%
55,189
54,581
1.1
%
164,636
157,124
4.8
%
74.9
%
74.2
%
Florida:
South Florida
70,758
67,791
4.4
%
27,721
26,718
3.8
%
43,037
41,073
4.8
%
60.8
%
60.6
%
Tampa
55,799
53,984
3.4
%
21,161
21,055
0.5
%
34,638
32,929
5.2
%
62.1
%
61.0
%
Orlando
42,250
41,006
3.0
%
15,338
14,504
5.8
%
26,912
26,502
1.5
%
63.7
%
64.6
%
Jacksonville
12,472
12,197
2.3
%
4,431
4,365
1.5
%
8,041
7,832
2.7
%
64.5
%
64.2
%
Florida Subtotal
181,279
174,978
3.6
%
68,651
66,642
3.0
%
112,628
108,336
4.0
%
62.1
%
61.9
%
Southeast United States:
Atlanta
70,527
68,348
3.2
%
25,080
23,765
5.5
%
45,447
44,583
1.9
%
64.4
%
65.2
%
Carolinas
32,040
30,951
3.5
%
9,294
8,777
5.9
%
22,746
22,174
2.6
%
71.0
%
71.6
%
Southeast US Subtotal
102,567
99,299
3.3
%
34,374
32,542
5.6
%
68,193
66,757
2.2
%
66.5
%
67.2
%
Texas:
Houston
10,299
9,983
3.2
%
5,071
5,211
(2.7)
%
5,228
4,772
9.6
%
50.8
%
47.8
%
Dallas
16,931
16,493
2.7
%
7,123
7,012
1.6
%
9,808
9,481
3.4
%
57.9
%
57.5
%
Texas Subtotal
27,230
26,476
2.8
%
12,194
12,223
(0.2)
%
15,036
14,253
5.5
%
55.2
%
53.8
%
Midwest United States:
Chicago
17,128
16,349
4.8
%
8,479
7,762
9.2
%
8,649
8,587
0.7
%
50.5
%
52.5
%
Minneapolis
7,250
7,070
2.5
%
2,798
2,508
11.6
%
4,452
4,562
(2.4)
%
61.4
%
64.5
%
Midwest US Subtotal
24,378
23,419
4.1
%
11,277
10,270
9.8
%
13,101
13,149
(0.4)
%
53.7
%
56.1
%
Same Store Total / Average
$
555,279
$
535,877
3.6
%
$
181,685
$
176,258
3.1
%
$
373,594
$
359,619
3.9
%
67.3
%
67.1
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 23
Supplemental Schedule 5(b) (Continued)
Same Store NOI Growth and Margin Summary — Sequential Quarter
($ in thousands) (unaudited)
Core Revenues
Core Operating Expenses
Net Operating Income
Core NOI Margin
Seq, Q3 2024
Q3 2024
Q2 2024
Change
Q3 2024
Q2 2024
Change
Q3 2024
Q2 2024
Change
Q3 2024
Q2 2024
Western United States:
Southern California
$
65,174
$
64,943
0.4
%
$
18,194
$
18,183
0.1
%
$
46,980
$
46,760
0.5
%
72.1
%
72.0
%
Northern California
32,554
32,385
0.5
%
9,018
8,734
3.3
%
23,536
23,651
(0.5)
%
72.3
%
73.0
%
Seattle
32,641
32,751
(0.3)
%
8,359
8,307
0.6
%
24,282
24,444
(0.7)
%
74.4
%
74.6
%
Phoenix
52,111
52,737
(1.2)
%
11,134
10,227
8.9
%
40,977
42,510
(3.6)
%
78.6
%
80.6
%
Las Vegas
19,428
19,514
(0.4)
%
4,643
4,375
6.1
%
14,785
15,139
(2.3)
%
76.1
%
77.6
%
Denver
17,917
18,026
(0.6)
%
3,841
3,504
9.6
%
14,076
14,522
(3.1)
%
78.6
%
80.6
%
Western US Subtotal
219,825
220,356
(0.2)
%
55,189
53,330
3.5
%
164,636
167,026
(1.4)
%
74.9
%
75.8
%
Florida:
South Florida
70,758
70,627
0.2
%
27,721
28,494
(2.7)
%
43,037
42,133
2.1
%
60.8
%
59.7
%
Tampa
55,799
56,188
(0.7)
%
21,161
21,758
(2.7)
%
34,638
34,430
0.6
%
62.1
%
61.3
%
Orlando
42,250
42,247
—
%
15,338
15,757
(2.7)
%
26,912
26,490
1.6
%
63.7
%
62.7
%
Jacksonville
12,472
12,579
(0.9)
%
4,431
4,730
(6.3)
%
8,041
7,849
2.4
%
64.5
%
62.4
%
Florida Subtotal
181,279
181,641
(0.2)
%
68,651
70,739
(3.0)
%
112,628
110,902
1.6
%
62.1
%
61.1
%
Southeast United States:
Atlanta
70,527
70,764
(0.3)
%
25,080
24,247
3.4
%
45,447
46,517
(2.3)
%
64.4
%
65.7
%
Carolinas
32,040
31,998
0.1
%
9,294
9,000
3.3
%
22,746
22,998
(1.1)
%
71.0
%
71.9
%
Southeast US Subtotal
102,567
102,762
(0.2)
%
34,374
33,247
3.4
%
68,193
69,515
(1.9)
%
66.5
%
67.6
%
Texas:
Houston
10,299
10,315
(0.2)
%
5,071
5,026
0.9
%
5,228
5,289
(1.2)
%
50.8
%
51.3
%
Dallas
16,931
17,046
(0.7)
%
7,123
6,987
1.9
%
9,808
10,059
(2.5)
%
57.9
%
59.0
%
Texas Subtotal
27,230
27,361
(0.5)
%
12,194
12,013
1.5
%
15,036
15,348
(2.0)
%
55.2
%
56.1
%
Midwest United States:
Chicago
17,128
17,001
0.7
%
8,479
7,526
12.7
%
8,649
9,475
(8.7)
%
50.5
%
55.7
%
Minneapolis
7,250
7,272
(0.3)
%
2,798
2,615
7.0
%
4,452
4,657
(4.4)
%
61.4
%
64.0
%
Midwest US Subtotal
24,378
24,273
0.4
%
11,277
10,141
11.2
%
13,101
14,132
(7.3)
%
53.7
%
58.2
%
Same Store Total / Average
$
555,279
$
556,393
(0.2)
%
$
181,685
$
179,470
1.2
%
$
373,594
$
376,923
(0.9)
%
67.3
%
67.7
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 24
Supplemental Schedule 5(b) (Continued)
Same Store NOI Growth and Margin Summary — YTD
($ in thousands) (unaudited)
Core Revenues
Core Operating Expenses
Net Operating Income
Core NOI Margin
YoY, YTD 2024
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Change
YTD 2024
YTD 2023
Western United States:
Southern California
$
194,130
$
180,994
7.3
%
$
54,283
$
52,679
3.0
%
$
139,847
$
128,315
9.0
%
72.0
%
70.9
%
Northern California
96,795
92,031
5.2
%
26,310
25,040
5.1
%
70,485
66,991
5.2
%
72.8
%
72.8
%
Seattle
97,645
92,893
5.1
%
24,870
24,782
0.4
%
72,775
68,111
6.8
%
74.5
%
73.3
%
Phoenix
157,357
152,153
3.4
%
30,956
30,418
1.8
%
126,401
121,735
3.8
%
80.3
%
80.0
%
Las Vegas
58,346
55,429
5.3
%
13,321
13,578
(1.9)
%
45,025
41,851
7.6
%
77.2
%
75.5
%
Denver
53,746
51,995
3.4
%
11,045
9,999
10.5
%
42,701
41,996
1.7
%
79.4
%
80.8
%
Western US Subtotal
658,019
625,495
5.2
%
160,785
156,496
2.7
%
497,234
468,999
6.0
%
75.6
%
75.0
%
Florida:
South Florida
211,252
200,215
5.5
%
84,351
77,168
9.3
%
126,901
123,047
3.1
%
60.1
%
61.5
%
Tampa
167,854
160,780
4.4
%
64,037
61,115
4.8
%
103,817
99,665
4.2
%
61.8
%
62.0
%
Orlando
126,317
121,850
3.7
%
45,947
41,770
10.0
%
80,370
80,080
0.4
%
63.6
%
65.7
%
Jacksonville
37,538
36,407
3.1
%
13,817
12,799
8.0
%
23,721
23,608
0.5
%
63.2
%
64.8
%
Florida Subtotal
542,961
519,252
4.6
%
208,152
192,852
7.9
%
334,809
326,400
2.6
%
61.7
%
62.9
%
Southeast United States:
Atlanta
211,552
201,314
5.1
%
72,355
68,422
5.7
%
139,197
132,892
4.7
%
65.8
%
66.0
%
Carolinas
95,610
91,487
4.5
%
27,117
24,935
8.8
%
68,493
66,552
2.9
%
71.6
%
72.7
%
Southeast US Subtotal
307,162
292,801
4.9
%
99,472
93,357
6.6
%
207,690
199,444
4.1
%
67.6
%
68.1
%
Texas:
Houston
30,864
29,774
3.7
%
14,985
15,068
(0.6)
%
15,879
14,706
8.0
%
51.4
%
49.4
%
Dallas
50,909
49,070
3.7
%
21,549
20,436
5.4
%
29,360
28,634
2.5
%
57.7
%
58.4
%
Texas Subtotal
81,773
78,844
3.7
%
36,534
35,504
2.9
%
45,239
43,340
4.4
%
55.3
%
55.0
%
Midwest United States:
Chicago
51,094
48,583
5.2
%
23,340
22,291
4.7
%
27,754
26,292
5.6
%
54.3
%
54.1
%
Minneapolis
21,728
21,119
2.9
%
7,832
7,156
9.4
%
13,896
13,963
(0.5)
%
64.0
%
66.1
%
Midwest US Subtotal
72,822
69,702
4.5
%
31,172
29,447
5.9
%
41,650
40,255
3.5
%
57.2
%
57.8
%
Same Store Total / Average
$
1,662,737
$
1,586,094
4.8
%
$
536,115
$
507,656
5.6
%
$
1,126,622
$
1,078,438
4.5
%
67.8
%
68.0
%
0.678780201294723
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 25
Supplemental Schedule 5(c)
Same Store Lease-Over-Lease Rent Growth
(unaudited)
Rental Rate Growth
Q3 2024
YTD 2024
Renewal
New
Blended
Renewal
New
Blended
Leases
Leases
Average
Leases
Leases
Average
Western United States:
Southern California
4.0
%
8.1
%
4.8
%
5.2
%
7.1
%
5.6
%
Northern California
3.7
%
3.7
%
3.7
%
4.5
%
3.2
%
4.2
%
Seattle
4.0
%
3.0
%
3.8
%
4.4
%
3.6
%
4.2
%
Phoenix
3.2
%
(1.2)
%
1.9
%
3.9
%
(0.9)
%
2.6
%
Las Vegas
4.0
%
1.5
%
3.4
%
3.7
%
0.4
%
2.9
%
Denver
3.9
%
5.0
%
4.2
%
3.7
%
3.8
%
3.7
%
Western US Subtotal
3.8
%
2.8
%
3.5
%
4.4
%
2.7
%
3.9
%
Florida:
South Florida
6.5
%
0.4
%
4.9
%
7.8
%
1.1
%
6.0
%
Tampa
2.5
%
(0.9)
%
1.6
%
4.6
%
0.6
%
3.4
%
Orlando
3.5
%
(0.1)
%
2.5
%
4.9
%
1.4
%
3.8
%
Jacksonville
2.2
%
—
%
1.7
%
3.9
%
0.4
%
2.9
%
Florida Subtotal
4.3
%
(0.1)
%
3.1
%
5.9
%
1.0
%
4.5
%
Southeast United States:
Atlanta
5.3
%
2.4
%
4.6
%
6.1
%
2.7
%
5.2
%
Carolinas
3.9
%
2.7
%
3.5
%
4.5
%
2.7
%
4.0
%
Southeast US Subtotal
4.9
%
2.5
%
4.2
%
5.6
%
2.7
%
4.8
%
Texas:
Houston
4.4
%
2.1
%
3.9
%
4.7
%
2.1
%
4.1
%
Dallas
4.0
%
(1.0)
%
2.5
%
5.1
%
0.7
%
3.9
%
Texas Subtotal
4.2
%
(0.1)
%
3.1
%
4.9
%
1.2
%
4.0
%
Midwest United States:
Chicago
4.1
%
7.8
%
5.0
%
4.7
%
6.8
%
5.2
%
Minneapolis
4.2
%
2.7
%
3.8
%
5.4
%
—
%
3.9
%
Midwest US Subtotal
4.2
%
6.1
%
4.6
%
4.9
%
4.4
%
4.8
%
Total / Average
4.2
%
1.7
%
3.6
%
5.2
%
2.1
%
4.3
%
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 26
Supplemental Schedule 6
Same Store Cost to Maintain, net (1)
($ in thousands, except per home amounts) (unaudited)
Total
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
R&M OpEx, net
$
29,802
$
26,564
$
20,923
$
22,462
$
27,258
Turn OpEx, net
11,024
10,037
8,669
9,866
12,135
Total recurring operating expenses, net
$
40,826
$
36,601
$
29,592
$
32,328
$
39,393
R&M CapEx
$
36,660
$
33,321
$
25,536
$
26,464
$
32,867
Turn CapEx
10,050
8,754
8,218
9,896
11,452
Total recurring capital expenditures
$
46,710
$
42,075
$
33,754
$
36,360
$
44,319
R&M OpEx, net + R&M CapEx
$
66,462
$
59,885
$
46,459
$
48,926
$
60,125
Turn OpEx, net + Turn CapEx
21,074
18,791
16,887
19,762
23,587
Total Cost to Maintain, net
$
87,536
$
78,676
$
63,346
$
68,688
$
83,712
Per Home
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Total Cost to Maintain, net
$
1,134
$
1,019
$
821
$
890
$
1,085
(1)Recurring R&M OpEx and Turn OpEx are presented net of applicable resident recoveries.
Total Wholly Owned Portfolio Capital Expenditure Detail
($ in thousands) (unaudited)
Total
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Recurring CapEx
$
50,970
$
46,371
$
36,923
$
40,080
$
48,765
Value Enhancing CapEx
16,182
12,500
7,300
12,148
14,381
Initial Renovation CapEx
8,860
6,392
7,698
9,656
11,744
Disposition CapEx
1,584
663
716
1,021
1,258
Total Capital Expenditures
$
77,596
$
65,926
$
52,637
$
62,905
$
76,148
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 27
Supplemental Schedule 7
Adjusted Property Management and G&A Reconciliation
($ in thousands) (unaudited)
Adjusted Property Management Expense
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Property management expense (GAAP)
$
34,382
$
23,399
$
98,252
$
70,563
Adjustments:
Share-based compensation expense
(1,313)
(1,830)
(4,585)
(5,232)
Adjusted property management expense
$
33,069
$
21,569
$
93,667
$
65,331
Adjusted G&A Expense
Q3 2024
Q3 2023
YTD 2024
YTD 2023
G&A expense (GAAP)
$
21,727
$
22,714
$
66,673
$
59,957
Adjustments:
Share-based compensation expense
(4,104)
(7,099)
(16,224)
(16,261)
Severance expense
(209)
(392)
(388)
(916)
Adjusted G&A expense
$
17,414
$
15,223
$
50,061
$
42,780
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 28
Supplemental Schedule 8(a)
Acquisitions and Dispositions
(unaudited)
June 30, 2024
Q3 2024 Acquisitions (1)
Q3 2024 Dispositions (2)
September 30, 2024
Homes
Homes
Avg. Est.
Homes
Average
Homes
Owned
Acq.
Cost Basis
Sold
Sales Price
Owned
Wholly Owned Portfolio
Western United States:
Southern California
7,446
12
$
533,534
53
$
639,727
7,405
Northern California
4,258
—
—
37
427,581
4,221
Seattle
4,012
—
—
5
414,600
4,007
Phoenix
9,243
24
388,970
9
272,889
9,258
Las Vegas
3,415
—
—
4
355,688
3,411
Denver
2,569
174
495,299
9
420,444
2,734
Western US Subtotal
30,943
210
485,332
117
508,221
31,036
Florida:
South Florida
8,269
6
362,560
37
466,051
8,238
Tampa
9,302
229
321,540
46
261,433
9,485
Orlando
6,774
32
362,376
14
252,829
6,792
Jacksonville
1,995
3
311,033
—
—
1,998
Florida Subtotal
26,340
270
327,174
97
338,241
26,513
Southeast United States:
Atlanta
12,712
32
346,232
53
279,283
12,691
Carolinas
5,633
247
324,411
4
380,125
5,876
Southeast US Subtotal
18,345
279
326,914
57
286,360
18,567
Texas:
Houston
2,331
—
—
7
215,071
2,324
Dallas
3,037
94
274,419
13
265,838
3,118
Texas Subtotal
5,368
94
274,419
20
248,070
5,442
Midwest United States:
Chicago
2,484
—
—
4
338,375
2,480
Minneapolis
1,066
—
—
2
347,500
1,064
Midwest US Subtotal
3,550
—
—
6
341,417
3,544
Other (3):
94
38
312,933
13
283,623
119
Total / Average
84,640
891
$
358,196
310
$
384,809
85,221
Joint Venture Portfolio
2020 Rockpoint JV (4)
2,607
—
$
—
1
$
370,000
2,606
2022 Rockpoint JV (5)
319
—
—
—
—
319
FNMA JV (6)
401
—
—
9
483,639
392
Pathway Homes (7)
558
35
337,335
11
353,172
582
Upward America JV (8)
3,720
—
—
—
—
3,720
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 29
Supplemental Schedule 8(a) (Continued)
(1)Estimated stabilized cap rates on wholly owned acquisitions during the quarter averaged 6.0%. Stabilized cap rate represents forecast nominal NOI for the 12 months following stabilization, divided by estimated cost basis.
(2)Cap rates on wholly owned dispositions during the quarter averaged 2.7%. Disposition cap rate represents actual NOI recognized in the 12 months prior to the month of disposition, divided by sales price.
(3)Represents homes located outside of the Company’s 16 core markets; as of September 30, 2024, these include 106 homes located in Nashville, and 13 homes located in other markets that are generally being held for sale.
(4)Represents portfolio owned by the 2020 Rockpoint JV, of which Invitation Homes owns 20.0%.
(5)Represents portfolio owned by the 2022 Rockpoint JV, of which Invitation Homes owns 16.7%.
(6)Represents portfolio owned by the FNMA JV, of which Invitation Homes owns 10.0%.
(7)Represents portfolio owned by Pathway Homes, of which Invitation Homes owns 100.0%.
(8)Represents portfolio owned by the Upward America JV, of which Invitation Homes owns 7.2%.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 30
Supplemental Schedule 8(b)
Expected Acquisition Pipeline of New Homes from Homebuilders — As of September 30, 2024
(unaudited)
Pipeline as of September 30, 2024 (1)(2)
Estimated Deliveries
in Q4 2024
Estimated Deliveries
in 2025
Estimated Deliveries Thereafter
Avg. Estimated Cost Basis Per Home
Southern California
85
24
61
—
$
540,000
Phoenix
86
6
50
30
440,000
Tampa
384
72
164
148
320,000
Orlando
428
41
213
221
430,000
Jacksonville
265
—
40
178
270,000
Atlanta
95
7
41
47
340,000
Carolinas
377
105
180
92
330,000
South Florida
15
15
—
—
370,000
Houston
533
60
324
149
280,000
Dallas
166
26
140
—
270,000
Nashville
27
27
—
—
300,000
Total / Average
2,461
383
1,213
865
$
340,000
(1)Represents the number of new homes under contract as of September 30, 2024, that are expected to be built, sold and delivered to the Company by various homebuilders during a future period.
(2)Pipeline rollforward:
Pipeline as of June 30, 2024
2,689
Q3 2024 additions and cancellations (net)
146
Q3 2024 deliveries
(374)
Pipeline as of September 30, 2024
2,461
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 31
Glossary and Reconciliations
Average Estimated Cost Basis
Average estimated cost basis on acquisition represents the sum of purchase price, any closing adjustments, and estimated initial renovation expenditure for an acquired home or population of homes.
Average Monthly Rent
Average monthly rent represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period, and reflects the impact of non-service rental concessions and contractual rent increases amortized over the life of the lease.
Average Occupancy
Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period.
Bad Debt
Bad debt represents the Company’s reserves for residents’ accounts receivables balances that are aged greater than 30 days, under the rationale that a resident’s security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident’s security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. All rental revenues and other property income, in both Total Portfolio and Same Store Portfolio presentations, are reflected net of bad debt.
Core NOI Margin
Core NOI margin for an identified population of homes is calculated by dividing NOI by Core Revenues attributable to such population.
Core Operating Expenses
Core operating expenses for an identified population of homes reflect property operating and maintenance expenses, excluding any expenses recovered from residents.
Core Revenues
Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries.
Cost to Maintain, net
Cost to maintain, net a home represents the sum of the expensed and capitalized portions of recurring repairs & maintenance and turn spend, net of resident reimbursements, as indicated in tables presented, not including the internal labor associated with such work.
Disposition CapEx
Disposition CapEx represents expenditures related to the preparation of a home for disposition after the prior tenant has moved out of the home.
EBITDA, EBITDAre, and Adjusted EBITDAre
EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. The Company defines EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. National Association of Real Estate Investment Trusts (“Nareit”) recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. The Company defines EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax, impairment on depreciated real estate investments, and adjustments for unconsolidated joint ventures. Adjusted EBITDAre is defined as EBITDAre
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 32
before the following items: share-based compensation expense; severance; casualty losses, net; (gains) losses on investments in equity securities, net; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of the Company’s financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.
The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of the Company’s liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company’s EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that the Company’s basis for computing these non-GAAP measures is comparable with that of other companies. See below for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated joint ventures. The Company defines Core FFO as FFO adjusted for the following: non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives; share-based compensation expense; legal settlements; severance expense; casualty (gains) losses, net; and (gains) losses on investments in equity and other securities, net, as applicable.
The Company defines Adjusted FFO as Core FFO less recurring capital expenditures that are necessary to help preserve the value, and maintain the functionality, of its homes. Where appropriate, FFO, Core FFO, and Adjusted FFO are adjusted for the Company’s share of investments in unconsolidated joint ventures.
The Company believes that FFO is a meaningful supplemental measure of the operating performance of its business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss. The Company believes that Core FFO and Adjusted FFO are also meaningful supplemental measures of its operating performance for the same reasons as FFO and are further helpful to investors as they provide a more consistent measurement of the Company’s performance across reporting periods by removing the impact of certain items that are not comparable from period to period.
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. FFO, Core FFO, and Adjusted FFO are not used as measures of the Company’s liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company’s FFO, Core FFO, and Adjusted FFO may not be comparable to the FFO, Core FFO, and Adjusted FFO of other companies due to the fact that not all companies use the same definition of FFO, Core FFO, and Adjusted FFO. Accordingly, there can be no assurance that the Company’s basis for computing these non-GAAP measures is comparable with that of other companies. See “Reconciliation of FFO, Core FFO, and Adjusted FFO” for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.
Initial Renovation CapEx
Initial renovation CapEx represents expenditures related to the first post-acquisition renovation of a home to bring the home to Invitation Homes standards and specifications.
Net Operating Income (NOI)
NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. The Company defines NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs, and marketing expense). NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; impairment and other; gain on sale of property, net of tax; (gains) losses on investments in equity securities, net; other income and expenses; management fee revenues; and income from investments in unconsolidated joint ventures.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 33
The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company’s NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that the Company’s basis for computing this non-GAAP measure is comparable with that of other companies.
The Company believes that Same Store NOI is also a meaningful supplemental measure of the Company’s operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of the Company’s performance across reporting periods by reflecting NOI for homes in its Same Store Portfolio.
See below for a reconciliation of GAAP net income to NOI for the Company’s total portfolio and NOI for its Same Store Portfolio.
PSF
PSF means per square foot.
Recurring Capital Expenditures or Recurring CapEx
Recurring Capital Expenditures or Recurring CapEx represents general replacements and expenditures required to preserve and maintain the value and functionality of a home and its systems as a single-family rental.
Rental Rate Growth
Rental rate growth for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease, and, in each case, reflects the impact of any amortized non-service rent concessions and amortized contractual rent increases. Leases are either renewal leases, where the Company’s current resident chooses to stay for a subsequent lease term, or a new lease, where the Company’s previous resident moves out and a new resident signs a lease to occupy the same home.
Same Store / Same Store Portfolio
Same Store or Same Store portfolio includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio, and homes in markets that the Company has announced an intent to exit where the Company no longer operates a significant number of homes.
Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio may be considered stabilized at the time of acquisition.
Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established.
The Company believes presenting information about the portion of its portfolio that has been fully operational for the entirety of a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of the Company’s comparable homes across periods and about trends in its organic business.
Total Homes / Total Portfolio
Total homes or total portfolio refers to the total number of homes owned, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated. Unless otherwise indicated, total homes or total portfolio refers to the wholly owned homes and excludes homes owned in joint ventures.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 34
Turnover Rate
Turnover rate represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population.
Unsecured Facility Covenants
Unsecured facility covenants refer to financial and operating requirements that the Company must meet with respect to its $1,750 million revolving credit facility (the “Revolving Facility”) and its $1,750 million term loan facility (the “2024 Term Loan Facility” and together with the Revolving Facility, the “Credit Facility”), as set forth in the Company’s Second Amended and Restated Revolving Credit and Term Loan Agreement dated September 9, 2024 and its $725 million term loan facility (the “2022 Term Loan Facility” and together with the 2024 Term Loan Facility, the “Term Loan Facilities”), as set forth in the Company’s 2022 Term Loan Agreement as amended by the First Amendment dated September 9, 2024 (together with the Credit Facility, the “Unsecured Credit Agreements”).
The metrics provided under the “Unsecured Facilities Covenant Compliance” heading on Supplemental Schedule 2(b) show the Company’s compliance with certain covenants that the Company believes are its most restrictive financial covenants, including: total leverage ratio, secured leverage ratio, unencumbered leverage ratio, fixed charge coverage ratio, and unsecured interest coverage ratio.
Total leverage ratio represents (i) total outstanding indebtedness (including the Company’s pro rata share of debt in unconsolidated entities), as defined by the Unsecured Credit Agreements, divided by (ii) total asset value (including the Company’s pro rata share of assets in unconsolidated entities), as defined in the Unsecured Credit Agreements. For the purpose of calculating total asset value under the terms of the Unsecured Credit Agreements, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
Secured leverage ratio represents (i) total outstanding secured indebtedness (including the Company’s pro rata share of secured debt in unconsolidated entities), as defined by the Unsecured Credit Agreements, divided by (ii) total asset value (including the Company’s pro rata share of assets in unconsolidated entities), as defined in the Unsecured Credit Agreements. For the purpose of calculating total asset value under the terms of the Unsecured Credit Agreements, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
Unencumbered leverage ratio represents (i) total outstanding unsecured indebtedness (including the Company’s pro rata share of unsecured debt in unconsolidated entities), as defined by the Unsecured Credit Agreements, divided by (ii) unencumbered asset value, as defined in the Unsecured Credit Agreements. For the purpose of calculating unencumbered asset value under the terms of the Unsecured Credit Agreements, properties owned for at least one year are valued by dividing NOI by a 6% capitalization rate (the market standard for residential loans), and properties owned for less than one year are valued at either their gross book value or by dividing NOI by a 6% capitalization rate.
Fixed charge coverage ratio represents (i) the trailing four quarters’ EBITDA (including the Company’s pro rata share of EBITDA from unconsolidated entities), as defined by the Unsecured Credit Agreements, divided by (ii) the trailing four quarters’ fixed charges (including the Company’s pro rata share of fixed charges in unconsolidated entities), as defined in the Unsecured Credit Agreements. Fixed charges include cash interest expense, regularly scheduled principal payments, and preferred stock or preferred OP unit dividends.
Unsecured interest coverage ratio represents (i) the trailing four quarters’ unencumbered NOI, as defined by the Unsecured Credit Agreements, divided by (ii) the trailing four quarters’ total unsecured interest expense (including the Company’s pro rata share of interest expense from unsecured debt in unconsolidated entities), as defined in the Unsecured Credit Agreements.
The metrics set forth under the “Unsecured Facilities Covenant Compliance” heading on Supplemental Schedule 2(b), and described above, are provided only to show the Company’s compliance with these covenants. These metrics should not be used for any other purpose, including without limitation to evaluate the Company’s financial condition or results of operations, nor do they indicate the Company’s covenant compliance as of any other date or for any other period. These metrics, or components of these metrics described above, may be defined differently in the Unsecured Credit Agreements than similarly named metrics are defined by the Company in its Earnings Release and Supplemental Information for the purposes of evaluating its financial conditions or results of operations.
For a more complete and detailed description of the covenants contained in the Company’s Unsecured Credit Agreements, see Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 9, 2024.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 35
The breach of any of the covenants set forth in the Unsecured Credit Agreements could result in a default of the Company’s indebtedness related to its Revolving Facility and Term Loan Facilities, which could cause those obligations to become due and payable. The Company’s ability to comply with these covenants may be affected by changes in the Company’s operating and financial performance, changes in general business and economic conditions, adverse regulatory developments, or other events adversely impacting it. If any of the Company’s indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with covenants, see Part I. Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in its periodic filings with the SEC.
Unsecured Public Bond Covenants
Unsecured public bond covenants refer to financial and operating requirements that the Company must meet with respect to its senior notes, as set forth in the Company’s Supplemental Indentures to the Base Indenture for its Senior Notes (together, the “Indenture”). The metrics provided under the “Unsecured Public Bond Covenant Compliance” heading on Supplemental Schedule 2(b) show the Company’s compliance with certain covenants that the Company believes are its most restrictive financial covenants, including: aggregate debt ratio, secured debt ratio, unencumbered assets ratio, and debt service ratio.
Aggregate debt ratio represents (i) total debt, as defined by the Indenture, divided by (ii) total assets, including the undepreciated book value of real estate assets and some tangible non-real estate assets, as defined by the Indenture.
Secured debt ratio represents (i) secured debt, as defined by the Indenture, divided by (ii) total assets, including the undepreciated book value of real estate assets and some tangible non-real estate assets, as defined by the Indenture.
Unencumbered assets ratio represents (i) total unencumbered assets, not including investments in unconsolidated joint ventures, as defined in the Indenture, divided by (ii) unsecured debt, as defined by the Indenture.
Debt service ratio represents (i) consolidated income available for debt service, as defined by the Indenture, divided by (ii) annual service charge for the trailing four quarters, calculated on a pro forma basis as if transactions during the period had occurred at the beginning of the period, as defined in the Indenture. Annual service charge includes interest expense and amortization of original issue discounts on debt, and excludes funded interest reserves, amortization of DFCs, and select nonrecurring charges.
The metrics set forth under the “Unsecured Public Bond Covenant Compliance” heading on Supplemental Schedule 2(b), and described above, are provided only to show the Company’s compliance with these covenants. These metrics should not be used for any other purpose, including without limitation to evaluate the Company’s financial condition or results of operations, nor do they indicate the Company’s covenant compliance as of any other date or for any other period. These metrics, or components of these metrics described above, may be defined differently in the Indenture than similarly named metrics are defined by the Company in its Earnings Release and Supplemental Information for the purposes of evaluating its financial conditions or results of operations.
For a more complete and detailed description of the covenants contained in the Company’s Unsecured Public Bond Agreements, see Exhibit 4.2 and/or 4.3 to the Company’s Current Reports on Form 8-K filed on August 6, 2021, November 5, 2021, April 5, 2022, August 2, 2023, and September 26, 2024.
The breach of any of the covenants set forth in the Indenture could result in a default of the Company’s indebtedness related to its senior notes, which could cause those obligations to become due and payable. The Company’s ability to comply with these covenants may be affected by changes in the Company’s operating and financial performance, changes in general business and economic conditions, adverse regulatory developments, or other events adversely impacting it. If any of the Company’s indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with covenants, see Part I. Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in its periodic filings with the SEC.
Value Enhancing CapEx
Value enhancing CapEx represents re-investment in stabilized homes, above and beyond general replacements to preserve and maintain the value and functionality of a home, for the purpose of enhancing expected risk-adjusted returns.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 36
Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Total revenues (Total Portfolio)
$
660,322
$
653,451
$
646,039
$
624,321
$
617,695
Management fee revenues
(18,980)
(15,976)
(13,942)
(3,420)
(3,404)
Total portfolio resident recoveries
(42,412)
(37,102)
(37,795)
(35,050)
(36,641)
Total Core Revenues (Total Portfolio)
598,930
600,373
594,302
585,851
577,650
Non-Same Store Core Revenues
(43,651)
(43,980)
(43,237)
(42,737)
(41,773)
Same Store Core Revenues
$
555,279
$
556,393
$
551,065
$
543,114
$
535,877
Reconciliation of Total Revenues to Same Store Core Revenues, YTD
(in thousands) (unaudited)
YTD 2024
YTD 2023
Total revenues (Total Portfolio)
$
1,959,812
$
1,807,957
Management fee revenues
(48,898)
(10,227)
Total portfolio resident recoveries
(117,309)
(101,383)
Total Core Revenues (Total Portfolio)
1,793,605
1,696,347
Non-Same Store Core Revenues
(130,868)
(110,253)
Same Store Core Revenues
$
1,662,737
$
1,586,094
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Property operating and maintenance expenses (Total Portfolio)
$
242,228
$
234,184
$
230,397
$
228,542
$
229,488
Total Portfolio resident recoveries
(42,412)
(37,102)
(37,795)
(35,050)
(36,641)
Core Operating Expenses (Total Portfolio)
199,816
197,082
192,602
193,492
192,847
Non-Same Store Core Operating Expenses
(18,131)
(17,612)
(17,642)
(17,277)
(16,589)
Same Store Core Operating Expenses
$
181,685
$
179,470
$
174,960
$
176,215
$
176,258
Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, YTD
(in thousands) (unaudited)
YTD 2024
YTD 2023
Property operating and maintenance expenses (Total Portfolio)
$
706,809
$
651,793
Total Portfolio resident recoveries
(117,309)
(101,383)
Core Operating Expenses (Total Portfolio)
589,500
550,410
Non-Same Store Core Operating Expenses
(53,385)
(42,754)
Same Store Core Operating Expenses
$
536,115
$
507,656
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 37
Reconciliation of Net Income to Same Store NOI, Quarterly
(in thousands) (unaudited)
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Net income available to common stockholders
$
95,084
$
72,981
$
142,158
$
129,368
$
131,637
Net income available to participating securities
185
207
192
178
181
Non-controlling interests
309
243
436
395
403
Interest expense
91,060
90,007
89,845
90,049
86,736
Depreciation and amortization
180,479
176,622
175,313
173,159
170,696
Property management expense
34,382
32,633
31,237
25,246
23,399
General and administrative
21,727
21,498
23,448
22,387
22,714
Casualty losses, impairment, and other (1)
20,872
10,353
4,137
3,069
2,496
Gain on sale of property, net of tax
(47,766)
(43,267)
(50,498)
(49,092)
(57,989)
(Gains) losses on investments in equity securities, net
257
(1,504)
209
(237)
499
Other, net (2)
9,345
54,012
(5,973)
(5,533)
2,533
Management fee revenues
(18,980)
(15,976)
(13,942)
(3,420)
(3,404)
Losses from investments in unconsolidated joint ventures
12,160
5,482
5,138
6,790
4,902
NOI (Total Portfolio)
399,114
403,291
401,700
392,359
384,803
Non-Same Store NOI
(25,520)
(26,368)
(25,595)
(25,460)
(25,184)
Same Store NOI
$
373,594
$
376,923
$
376,105
$
366,899
$
359,619
Reconciliation of Net Income to Same Store NOI, YTD
(in thousands) (unaudited)
YTD 2024
YTD 2023
Net income available to common stockholders
$
310,223
$
389,406
Net income available to participating securities
584
518
Non-controlling interests
988
1,163
Interest expense
270,912
243,408
Depreciation and amortization
532,414
501,128
Property management expense
98,252
70,563
General and administrative
66,673
59,957
Casualty losses, impairment, and other (1)
35,362
5,527
Gain on sale of property, net of tax
(141,531)
(134,448)
(Gains) losses on investments in equity securities, net
(1,038)
(113)
Other, net (2)
57,384
7,968
Management fee revenues
(48,898)
(10,227)
Losses from investments in unconsolidated joint ventures
22,780
11,087
NOI (Total Portfolio)
1,204,105
1,145,937
Non-Same Store NOI
(77,483)
(67,499)
Same Store NOI
$
1,126,622
$
1,078,438
(1)For Q3 2024 and YTD 2024, includes $14.0 million of estimated losses and damages, net of estimated insurance recoveries, related to Hurricanes Beryl, Debby, and Helene.
(2)Includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 38
Reconciliation of Net Income to Adjusted EBITDAre
(in thousands, unaudited)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Net income available to common stockholders
$
95,084
$
131,637
$
310,223
$
389,406
Net income available to participating securities
185
181
584
518
Non-controlling interests
309
403
988
1,163
Interest expense
91,060
86,736
270,912
243,408
Interest expense in unconsolidated joint ventures
10,186
5,051
20,970
12,774
Depreciation and amortization
180,479
170,696
532,414
501,128
Depreciation and amortization of investments in unconsolidated joint ventures
3,590
2,690
9,875
7,686
EBITDA
380,893
397,394
1,145,966
1,156,083
Gain on sale of property, net of tax
(47,766)
(57,989)
(141,531)
(134,448)
Impairment on depreciated real estate investments
270
83
330
342
Net (gain) loss on sale of investments in unconsolidated joint ventures
499
(554)
285
(1,188)
EBITDAre
333,896
338,934
1,005,050
1,020,789
Share-based compensation expense
5,417
8,929
20,809
21,493
Severance
209
392
388
916
Casualty losses, net (1)(2)
20,729
2,429
35,174
5,214
(Gains) losses on investments in equity and other securities, net
257
499
(1,038)
(113)
Other, net (3)
9,345
2,533
57,384
7,968
Adjusted EBITDAre
$
369,853
$
353,716
$
1,117,767
$
1,056,267
Trailing Twelve Months (TTM) Ended
September 30, 2024
December 31, 2023
Net income available to common stockholders
$
439,591
$
518,774
Net income available to participating securities
762
696
Non-controlling interests
1,383
1,558
Interest expense
360,961
333,457
Interest expense in unconsolidated joint ventures
26,451
18,255
Depreciation and amortization
705,573
674,287
Depreciation and amortization of investments in unconsolidated joint ventures
12,658
10,469
EBITDA
1,547,379
1,557,496
Gain on sale of property, net of tax
(190,623)
(183,540)
Impairment on depreciated real estate investments
415
427
Net gain on sale of investments in unconsolidated joint ventures
(195)
(1,668)
EBITDAre
1,356,976
1,372,715
Share-based compensation expense
28,819
29,503
Severance
449
977
Casualty losses, net (1)(2)
38,160
8,200
(Gains) losses on investments in equity and other securities, net
(1,275)
(350)
Other, net (3)
51,851
2,435
Adjusted EBITDAre
$
1,474,980
$
1,413,480
(1)Includes the Company’s share from unconsolidated joint ventures.
(2)For Q3 2024 and YTD 2024, includes $14.0 million of estimated losses and damages, net of estimated insurance recoveries, related to Hurricanes Beryl, Debby, and Helene.
(3)Includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses.
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 39
Reconciliation of Net Debt / Trailing Twelve Months (TTM) Adjusted EBITDAre
(in thousands, except for ratio) (unaudited)
As of
As of
September 30, 2024
December 31, 2023
Mortgage loans, net
$
1,614,220
$
1,627,256
Secured term loan, net
401,595
401,515
Unsecured notes, net
3,799,034
3,305,467
Term loan facility, net
2,444,054
3,211,814
Revolving facility
750,000
—
Total Debt per Balance Sheet
9,008,903
8,546,052
Retained and repurchased certificates
(87,063)
(87,703)
Cash, ex-security deposits and letters of credit (1)
(1,062,179)
(713,898)
Deferred financing costs, net
64,086
45,518
Unamortized discounts on note payable
25,100
21,376
Net Debt (A)
$
7,948,847
$
7,811,345
For the TTM Ended
For the TTM Ended
September 30, 2024
December 31, 2023
Adjusted EBITDAre (B)
$
1,474,980
$
1,413,480
Net Debt / TTM Adjusted EBITDAre (A / B)
5.4
x
5.5
x
(1)Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit
Components of Non-Cash Interest Expense
(in thousands) (unaudited)
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Amortization of discounts on notes payable
$
684
$
532
$
2,001
$
1,335
Amortization of deferred financing costs
5,010
4,131
13,410
12,003
Change in fair value of interest rate derivatives
—
1
1
41
Amortization of swap fair value at designation
2,524
2,340
7,166
6,970
Company’s share from unconsolidated joint ventures
5,867
2,557
9,629
5,526
Total non-cash interest expense
$
14,085
$
9,561
$
32,207
$
25,875
Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2024 Earnings Release and Supplemental Information — page 40
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 1 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 0 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor