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EARNINGS RELEASE
AND
SUPPLEMENTAL INFORMATION
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Chief Executive Officer Fred Tuomi comments: "Fundamentals in our markets remain favorable, and we believe that the
quality of our locations, homes, and resident service continue to differentiate Invitation Homes in the marketplace. We
achieved another strong quarter of approximately 5% renewal rent growth in first quarter, while turnover moved even lower to
7.6%. As expected, new lease rent growth improved seasonally in first quarter and continues to grow as we enter the peak
leasing season. We believe that we remain on track to achieve our 2018 guidance, including 5 - 6% Same Store NOI growth for
the full year 2018.
"The merger integration also continues to progress according to plan, and we remain confident in our ability to achieve the
synergies we committed to residents, team members, and shareholders."
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Net Loss, FFO, Core FFO, and AFFO Per Share — Diluted
Q1 2018 Q1 2017
(1)
Net loss $ (0.03) $ (0.08)
FFO (2) 0.23 0.04
Core FFO (2) 0.29 0.25
AFFO (2) 0.24 0.22
(1) No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, net loss per share for Q1 2017 has been
calculated based on operating results for the period from February 1, 2017 through March 31, 2017, and the weighted average number of shares
outstanding during that same period, in accordance with GAAP.
(2) No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. For Q1 2017, FFO, Core FFO, and
AFFO per share have been calculated based on operating results for the full period from January 1, 2017 through March 31, 2017, and as if shares issued
in connection with the IPO were issued on January 1, 2017.
Net Loss
Net loss attributable to common shareholders for the three months ended March 31, 2018 was $0.03 per share, compared to
$0.08 per share for the prior year period during which the Company was public from February 1, 2017 to March 31, 2017.
Core FFO
Year-over-year, Core FFO for the three months ended March 31, 2018 increased 13.7% to $0.29 per share, primarily due to an
increase in NOI per share, driven by higher revenues, and lower cash interest expense per share.
AFFO
Year-over-year, AFFO for the three months ended March 31, 2018 increased 7.3% to $0.24 per share, primarily driven by the
increase in Core FFO described above.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2018 Q1 2017
Core revenue growth (year-over-year) 4.1%
Core operating expense growth (year-over-year) 5.1%
NOI growth (year-over-year) 3.6%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
During the first quarter of 2018, as previously announced, on February 8, 2018, the Company closed a seven-year (inclusive of
extension options), floating rate securitization loan (IH 2018-1) with a principal amount of $917 million, of which the Company
retained $46 million to comply with risk retention requirements. Total cost of funds for the loan was LIBOR + 124 basis
points. Net proceeds were used to repay in full the Company's last remaining 2019 secured debt maturities, CAH 2014-1 and
CAH 2014-2. The securitization transaction and associated repayments are expected to result in cash net annual interest
expense savings of approximately $4 million on a run-rate basis.
Subsequent to quarter end, on May 8, 2018, the Company closed another seven-year (inclusive of extension options), floating
rate securitization loan (IH 2018-2) with a principal amount of $1,057 million, of which the Company retained $53 million to
comply with risk retention requirements. Total cost of funds for the loan was LIBOR + 138 basis points. Net proceeds and
available cash were used to repay in full two of the Company's floating rate securitization loans maturing in 2020, IH 2015-1
and IH 2015-2. The securitization transaction and associated repayments are expected to result in cash net annual interest
expense savings of approximately $10 million on a run-rate basis.
After giving effect to the IH 2018-2 securitization and associated repayment activity, weighted average years to maturity at
March 31, 2018 would have been 5.0 years, 79% of debt would have been fixed rate or swapped to fixed rate, and the weighted
average interest rate on total debt during the quarter would have been 3.4%.
Subsequent to quarter end, the Company also closed $2,520 million of forward-starting interest rate swaps at a weighted
average swap rate of 2.91%. After giving effect to these swaps, and based on the Company's current capital structure, the
percentage of debt that will be fixed rate or swapped to fixed rate increases to 87% beginning in January 2019.
Dividend
As previously announced, on May 4, 2018 the Company's Board of Directors declared a quarterly cash dividend of $0.11 per
share of common stock. The dividend will be paid on or before May 31, 2018 to shareholders of record as of the close of
business on May 15, 2018.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
2018 Guidance
FY 2018
Guidance
Core FFO per share – diluted $1.13 - $1.21
AFFO per share – diluted $0.94 - $1.02
Note: The Company does not provide guidance for the most comparable GAAP financial measures of net loss, total revenues, and property operating and
maintenance, or a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store revenue growth,
Same Store operating expense growth, and Same Store NOI growth to the comparable GAAP financial measures because it is unable to reasonably predict
certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such
items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based
compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and
could have a material impact on our GAAP results for the guidance period.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act") 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 anticipated benefits of the
merger with Starwood Waypoint Homes, 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," "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 associated
with achieving expected revenue synergies or cost savings from the merger, risks inherent to the single-family rental industry
sector and the Company’s business model, macroeconomic factors beyond the Company’s control, competition in identifying
and acquiring the Company’s properties, competition in the leasing market for quality residents, increasing property taxes,
homeowners' association fees and insurance costs, the Company’s dependence on third parties for key services, risks related to
evaluation of properties, poor resident selection and defaults and non-renewals by the Company’s residents, performance of the
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Liabilities:
Mortgage loans, net $ 7,614,460 $ 7,580,153
Term loan facility, net 1,488,695 1,487,973
Revolving facility 15,000 35,000
Convertible senior notes, net 550,695 548,536
Accounts payable and accrued expenses 199,317 193,413
Resident security deposits 150,202 146,689
Other liabilities 41,179 41,999
Total liabilities 10,059,548 10,033,763
Equity:
Shareholders' equity
Preferred stock, $0.01 par value per share, 900,000,000 shares
authorized, none outstanding at March 31, 2018 and
December 31, 2017 — —
Common stock, $0.01 par value per share, 9,000,000,000
shares authorized, 520,364,636 and 519,173,142 outstanding
at March 31, 2018 and December 31, 2017, respectively 5,204 5,192
Additional paid-in-capital 8,612,110 8,602,603
Accumulated deficit (232,296) (157,595)
Accumulated other comprehensive income 106,918 47,885
Total shareholders' equity 8,491,936 8,498,085
Non-controlling interests 144,961 151,790
Total equity 8,636,897 8,649,875
Total liabilities and equity $ 18,696,445 $ 18,683,638
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2018 Q1 2017
Revenues:
Rental revenues $ 395,792 $ 226,096
Other property income 27,877 12,654
Total revenues 423,669 238,750
Operating expenses:
Property operating and maintenance 160,767 88,168
Property management expense 17,164 11,449
General and administrative 27,636 58,266
Depreciation and amortization 144,500 67,577
Impairment and other 6,121 1,204
Total operating expenses 356,188 226,664
Operating income 67,481 12,086
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Weighted average shares and units outstanding — diluted (1) 530,314,568 311,948,259
(1) No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. For Q1 2017, FFO, Core FFO, and AFFO per
share have been calculated based on operating results for the full period from January 1, 2017 through March 31, 2017, and as if shares issued in connection with the
IPO were issued on January 1, 2017.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Weighted average amounts for FFO, Core FFO, and AFFO (2) Q1 2018 Q1 2017
Common shares — diluted 520,953,961 311,948,259
OP units 9,360,607 —
Total common shares and units — diluted 530,314,568 311,948,259
Period end amounts for FFO, Core FFO, and AFFO March 31, 2018
Common shares — diluted 521,378,674
OP units 9,036,578
Total common shares and units — diluted 530,415,252
(1) No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, Q1 2017 weighted average shares outstanding for
net loss are for the period from February 1, 2017 through March 31, 2017, in accordance with GAAP.
(2) No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. As such, Q1 2017 weighted average shares and
units outstanding for FFO, Core FFO, and AFFO are calculated as if shares issued in connection with the IPO were issued on January 1, 2017.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Unsecured:
Fixed (Convertible) 574,993 5.9 % 3.3 % 2.8
Floating — swapped to fixed 1,500,000 15.4 % 3.7 % 3.9
Floating 15,000 0.1 % 3.6 % 3.9
Total unsecured 2,089,993 21.4 % 3.6 % 3.6
Total Debt:
Fixed + floating swapped to fixed 7,694,621 79.0 % 3.6 % 4.0
Floating 2,050,254 21.0 % 3.0 % 5.9
Total debt 9,744,875 100.0 % 3.5 % 4.4
Unamortized discounts on notes payable (27,555)
Deferred financing costs (48,470)
Total Debt per Balance Sheet 9,668,850
Retained and repurchased certificates (427,608)
Cash, ex-security deposits (3) (240,165)
Deferred financing costs 48,470
Unamortized discounts on notes payable 27,555
Net debt $ 9,077,102
(1) Includes the impact of interest rate swaps in place and effective as of March 31, 2018.
(2) Numbers in this table do not take into account the impact of the IH 2018-2 securitization loan and repayments of the IH 2015-1 and IH 2015-2 securitization loans in
May 2018. On a basis that gives effect to these transactions, the weighted average interest rate would have been 3.4%, and weighted average years to maturity would
have been 5.0 years.
(3) Represents cash and cash equivalents and the non-security deposit portion of restricted cash.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
(1) Numbers in this table do not take into account the impact of the IH 2018-2 securitization loan and associated repayments of IH 2015-1 and IH 2015-2 in May 2018,
which eliminated $1,154,932 of secured debt maturing in 2020.
(2) Assumes all extension options are exercised.
(3) Includes the impact of interest rate swaps in place and effective as of March 31, 2018.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Change Change
Q1 2018 Q1 2017 YoY Q4 2017 Seq
Revenues:
Rental revenues $ 351,089 $ 337,947 3.9 % $ 347,360 1.1 %
Other property income (1)(2) 24,230 18,400 31.7 % 21,575 12.3 %
Total revenues 375,319 356,347 5.3 % 368,935 1.7 %
Less: Resident recoveries (1)(2) (12,087) (7,361) 64.2 % (9,543) 26.7 %
Core revenues 363,232 348,986 4.1 % 359,392 1.1 %
Fixed Expenses:
Property taxes 63,309 58,976 7.3 % 58,801 7.7 %
Insurance expenses 6,982 7,089 (1.5)% 7,281 (4.1 )%
HOA expenses 7,092 6,778 4.6 % 6,930 2.3 %
Controllable Expenses:
Repairs and maintenance (3) 18,798 15,096 24.5 % 15,841 18.7 %
Personnel 17,698 17,652 0.3 % 16,696 6.0 %
Turnover 11,165 10,881 2.6 % 10,075 10.8 %
Utilities (1) 10,014 7,366 35.9 % 9,349 7.1 %
Leasing and marketing (4) 2,889 3,487 (17.1)% 3,170 (8.9 )%
Property administrative 2,912 2,603 11.9 % 3,102 (6.1 )%
Property operating and
maintenance expenses 140,859 129,928 8.4 % 131,245 7.3 %
Less: Resident recoveries (1)(2) (12,087) (7,361) 64.2 % (9,543) 26.7 %
Core operating expenses 128,772 122,567 5.1 % 121,702 5.8 %
(1) The increases in other property income, utilities, and resident recoveries are primarily attributable to the rollout of a new utility billing policy. Residents continue to
be responsible for costs associated with their water, sewer, and waste removal services, but providers of these services now invoice Invitation Homes rather than the
resident for payment. Invitation Homes pays the utility provider, and subsequently bills the resident for reimbursement, resulting in materially higher utility expense
that is offset by materially higher resident recoveries.
(2) In addition to the rollout of the utility billing policy, other property income and resident recoveries in Q1 2018 were higher as a result of a one-time item related to
the timing by which resident utility recoveries are accrued. As part of the adoption of the utility program, the timing of resident utility bill-backs from the two
merged companies was aligned by adopting a best practice that matches reimbursements with the period in which the corresponding expenses are booked. This
resulted in a one-time increase in resident recoveries in Q1 2018 that we do not expect to recur in future quarters.
(3) The increase in repair and maintenance expenses was primarily one-time in nature, and related to a timing delay in completing routine, non-storm related service
requests in markets impacted by the September 2017 hurricane. Service requests related to hurricane damage were prioritized in the fourth quarter of 2017, while
non-critical routine service requests that otherwise would have been resolved last year were completed in the first quarter of 2018. Harsher winter weather in the first
quarter of 2018 compared to the first quarter of 2017 also contributed to higher repair and maintenance expenses in some markets.
(4) Same Store leasing and marketing expense includes amortization of leasing commissions of $2,698, $3,252, and $2,877 for Q1 2018, Q1 2017, and Q4 2017,
respectively.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Portfolio Characteristics — As of and for the Quarter Ended March 31, 2018 (1)
(unaudited)
Average
Number of Average Average Monthly Percent of
Homes Occupancy Monthly Rent Rent PSF Revenue
Western United States:
Southern California 8,361 95.1 % $ 2,229 $ 1.32 13.0 %
Northern California 4,592 96.1 % 1,900 1.24 6.6 %
Seattle 3,294 94.7 % 2,029 1.07 5.1 %
Phoenix 7,435 96.4 % 1,241 0.76 6.8 %
Las Vegas 2,709 96.5 % 1,490 0.75 3.0 %
Denver 2,190 94.6 % 1,856 1.04 3.0 %
Western US Subtotal 28,581 95.6 % 1,795 1.05 37.5 %
Florida:
South Florida 9,314 93.5 % 2,087 1.13 13.5 %
Tampa 8,655 93.9 % 1,580 0.86 9.7 %
Orlando 5,856 95.8 % 1,536 0.83 6.5 %
Jacksonville 1,941 95.6 % 1,593 0.80 2.2 %
Florida Subtotal 25,766 94.3 % 1,753 0.95 31.9 %
Texas:
Houston 2,572 90.6 % 1,529 0.78 2.6 %
Dallas 2,266 93.5 % 1,697 0.81 2.7 %
Texas Subtotal 4,838 91.9 % 1,609 0.80 5.3 %
(1) All data is for the total portfolio, unless otherwise noted.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Florida:
South Florida 8,443 2,106 2,046 2.9 % 94.5 % 94.9 % (0.4 )% 51,476 50,139 2.7 %
Tampa 8,157 1,586 1,542 2.9 % 94.7 % 95.3 % (0.6 )% 38,052 37,144 2.4 %
Orlando 5,616 1,533 1,461 4.9 % 96.7 % 96.4 % 0.3 % 25,911 24,502 5.8 %
Jacksonville 1,906 1,596 1,556 2.6 % 96.0 % 93.9 % 2.1 % 9,155 8,720 5.0 %
Florida Subtotal 24,122 1,755 1,700 3.2 % 95.2 % 95.3 % (0.1 )% 124,594 120,505 3.4 %
Texas:
Houston 2,099 1,537 1,519 1.2 % 95.9 % 95.4 % 0.5 % 9,446 9,325 1.3 %
Dallas 1,971 1,714 1,658 3.4 % 94.5 % 94.6 % (0.1 )% 9,770 9,487 3.0 %
Texas Subtotal 4,070 1,622 1,586 2.3 % 95.2 % 95.0 % 0.2 % 19,216 18,812 2.1 %
Same Store Total / Average 72,109 $ 1,706 $ 1,641 4.0% 95.7% 95.8% (0.1)% $ 363,232 $ 348,986 4.1 %
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Florida:
South Florida 8,443 2,106 2,095 0.5 % 94.5 % 94.3 % 0.2 % 51,476 51,069 0.8 %
Tampa 8,157 1,586 1,583 0.2 % 94.7 % 94.0 % 0.7 % 38,052 37,766 0.8 %
Orlando 5,616 1,533 1,521 0.8 % 96.7 % 96.4 % 0.3 % 25,911 25,577 1.3 %
Jacksonville 1,906 1,596 1,589 0.4 % 96.0 % 95.0 % 1.0 % 9,155 9,026 1.4 %
Florida Subtotal 24,122 1,755 1,747 0.5 % 95.2 % 94.7 % 0.5 % 124,594 123,438 0.9 %
Texas:
Houston 2,099 1,537 1,538 (0.1)% 95.9 % 95.5 % 0.4 % 9,446 9,385 0.6 %
Dallas 1,971 1,714 1,716 (0.1)% 94.5 % 94.4 % 0.1 % 9,770 9,782 (0.1)%
Texas Subtotal 4,070 1,622 1,623 (0.1)% 95.2 % 95.0 % 0.2 % 19,216 19,167 0.3 %
Same Store Total / Average 72,109 $ 1,706 $ 1,697 0.5 % 95.7% 95.3% 0.4 % $ 363,232 $ 359,392 1.1 %
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Core Revenue Core Operating Expenses Net Operating Income Core NOI Margin
YoY, Q1 2018 Q1 2018 Q1 2017 Change Q1 2018 Q1 2017 Change Q1 2018 Q1 2017 Change Q1 2018 Q1 2017
Western United States:
Southern California $ 45,685 $ 43,580 4.8 % $ 14,789 $ 13,375 10.6 % $ 30,896 $ 30,205 2.3 % 67.6 % 69.3 %
Northern California 18,169 17,114 6.2 % 5,562 4,868 14.3 % 12,607 12,246 2.9 % 69.4 % 71.6 %
Seattle 18,345 17,365 5.6 % 5,144 5,538 (7.1)% 13,201 11,827 11.6 % 72.0 % 68.1 %
Phoenix 23,774 22,412 6.1 % 6,424 5,857 9.7 % 17,350 16,555 4.8 % 73.0 % 73.9 %
Las Vegas 11,435 10,757 6.3 % 2,836 2,832 0.1 % 8,599 7,925 8.5 % 75.2 % 73.7 %
Denver 10,463 9,772 7.1 % 1,427 2,150 (33.6)% 9,036 7,622 18.6 % 86.4 % 78.0 %
Western US Subtotal 127,871 121,000 5.7 % 36,182 34,620 4.5 % 91,689 86,380 6.1 % 71.7 % 71.4 %
Florida:
South Florida 51,476 50,139 2.7 % 22,656 21,797 3.9 % 28,820 28,342 1.7 % 56.0 % 56.5 %
Tampa 38,052 37,144 2.4 % 16,153 14,335 12.7 % 21,899 22,809 (4.0)% 57.6 % 61.4 %
Orlando 25,911 24,502 5.8 % 9,633 9,466 1.8 % 16,278 15,036 8.3 % 62.8 % 61.4 %
Jacksonville 9,155 8,720 5.0 % 3,573 3,290 8.6 % 5,582 5,430 2.8 % 61.0 % 62.3 %
Florida Subtotal 124,594 120,505 3.4 % 52,015 48,888 6.4 % 72,579 71,617 1.3 % 58.3 % 59.4 %
Texas:
Houston 9,446 9,325 1.3 % 4,320 4,354 (0.8)% 5,126 4,971 3.1 % 54.3 % 53.3 %
Dallas 9,770 9,487 3.0 % 4,250 3,721 14.2 % 5,520 5,766 (4.3)% 56.5 % 60.8 %
Texas Subtotal 19,216 18,812 2.1 % 8,570 8,075 6.1 % 10,646 10,737 (0.8)% 55.4 % 57.1 %
Same Store Total / Average $ 363,232 $ 348,986 4.1 % $ 128,772 $ 122,567 5.1 % $ 234,460 $ 226,419 3.6 % 64.5% 64.9%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Core Revenue Core Operating Expenses Net Operating Income Core NOI Margin
Seq, Q1 2018 Q1 2018 Q4 2017 Change Q1 2018 Q4 2017 Change Q1 2018 Q4 2017 Change Q1 2018 Q4 2017
Western United States:
Southern California $ 45,685 $ 45,638 0.1 % $ 14,789 $ 14,423 2.5 % $ 30,896 $ 31,215 (1.0 )% 67.6 % 68.4 %
Northern California 18,169 17,872 1.7 % 5,562 5,510 0.9 % 12,607 12,362 2.0 % 69.4 % 69.2 %
Seattle 18,345 18,012 1.8 % 5,144 5,097 0.9 % 13,201 12,915 2.2 % 72.0 % 71.7 %
Phoenix 23,774 23,298 2.0 % 6,424 5,720 12.3 % 17,350 17,578 (1.3 )% 73.0 % 75.4 %
Las Vegas 11,435 11,183 2.3 % 2,836 2,694 5.3 % 8,599 8,489 1.3 % 75.2 % 75.9 %
Denver 10,463 10,266 1.9 % 1,427 2,387 (40.2)% 9,036 7,879 14.7 % 86.4 % 76.7 %
Western US Subtotal 127,871 126,269 1.3 % 36,182 35,831 1.0 % 91,689 90,438 1.4 % 71.7 % 71.6 %
Florida:
South Florida 51,476 51,069 0.8 % 22,656 21,148 7.1 % 28,820 29,921 (3.7 )% 56.0 % 58.6 %
Tampa 38,052 37,766 0.8 % 16,153 14,644 10.3 % 21,899 23,122 (5.3 )% 57.6 % 61.2 %
Orlando 25,911 25,577 1.3 % 9,633 8,554 12.6 % 16,278 17,023 (4.4 )% 62.8 % 66.6 %
Jacksonville 9,155 9,026 1.4 % 3,573 3,130 14.2 % 5,582 5,896 (5.3 )% 61.0 % 65.3 %
Florida Subtotal 124,594 123,438 0.9 % 52,015 47,476 9.6 % 72,579 75,962 (4.5 )% 58.3 % 61.5 %
Texas:
Houston 9,446 9,385 0.6 % 4,320 4,254 1.6 % 5,126 5,131 (0.1 )% 54.3 % 54.7 %
Dallas 9,770 9,782 (0.1)% 4,250 4,027 5.5 % 5,520 5,755 (4.1 )% 56.5 % 58.8 %
Texas Subtotal 19,216 19,167 0.3 % 8,570 8,281 3.5 % 10,646 10,886 (2.2 )% 55.4 % 56.8 %
Same Store Total / Average $ 363,232 $ 359,392 1.1 % $ 128,772 $ 121,702 5.8 % $ 234,460 $ 237,690 (1.4)% 64.5% 66.1%
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Florida:
South Florida 4.0 % 0.9 % 2.9 %
Tampa 4.1 % 0.9 % 2.8 %
Orlando 5.2 % 5.6 % 5.3 %
Jacksonville 3.4 % 3.5 % 3.4 %
Florida Subtotal 4.2 % 2.0 % 3.4 %
Texas:
Houston 3.6 % (1.7)% 2.0 %
Dallas 4.5 % (1.8)% 1.9 %
Texas Subtotal 4.0 % (1.8)% 1.9 %
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
(1) For Q1 2018, includes $901 related to IPO and pre-IPO grants. For Q1 2017, consists entirely of IPO and pre-IPO grants.
(2) For Q1 2018, includes $2,268 related to IPO and pre-IPO grants and $763 related to merger grants. For Q1 2017, consists entirely of IPO and pre-IPO grants.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Florida:
South Florida 9,334 2 321,677 22 224,423 9,314
Tampa 8,665 11 262,609 21 185,333 8,655
Orlando 5,867 12 288,368 23 184,859 5,856
Jacksonville 1,945 — — 4 206,625 1,941
Florida Subtotal 25,811 25 279,699 70 198,680 25,766
Texas:
Houston 2,597 — — 25 146,390 2,572
Dallas 2,270 — — 4 176,625 2,266
Texas Subtotal 4,867 — — 29 150,560 4,838
(1) Estimated stabilized cap rates on acquisitions during the quarter averaged 5.5%. Stabilized cap rate represents forecast nominal NOI for the twelve months following
stabilization, divided by estimated cost basis.
(2) Cap rates on dispositions during the quarter averaged 0.1%. Disposition cap rate represents actual NOI recognized in the twelve months prior to the month of
disposition, divided by sales price.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Average Occupancy
Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were
occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during
the measurement period.
Core Revenues
Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries.
Cost to Maintain
Cost to maintain a home represents the sum of recurring repairs and maintenance and recurring turnover expenses (gross or net of
resident reimbursements, as indicated in tables presented) and recurring capital expenditures.
The GAAP measure most directly comparable to EBITDA, EBITDAre and Adjusted EBITDAre is net income or loss. EBITDA,
EBITDAre and Adjusted EBITDAre are not used as measures of our liquidity and should not be considered alternatives to net income or
loss or any other measure of financial performance presented in accordance with GAAP. Our EBITDA, EBITDAre and Adjusted
EBITDAre may not be comparable to the EBITDA, EBITDAre and Adjusted EBITDAre of other companies due to the fact that not all
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
See "Reconciliation of Non-GAAP Measures" below for a reconciliation of GAAP net income (loss) to EBITDA, EBITDAre and
Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate
companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of
previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for
unconsolidated partnerships and joint ventures.
We believe that FFO is a meaningful supplemental measure of the operating performance of our business because historical cost
accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time,
as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions,
management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and
amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well
non-controlling interests, from GAAP net income or loss.
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are
not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial
performance presented in accordance with GAAP. Our Core FFO and Adjusted FFO may not be comparable to the Core FFO and
Adjusted FFO of other companies due to the fact that not all companies use the same definition of Core FFO and Adjusted FFO.
Accordingly, there can be no assurance that our basis for computing this non-GAAP measures is comparable with that of other
companies.
Please see Supplemental Schedule 1 for a reconciliation of GAAP net income (loss) to FFO, Core FFO, and Adjusted FFO.
The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be
considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP.
Our NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI.
Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other
companies.
We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI
and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting
NOI for homes in our Same Store portfolio.
See "Reconciliation of Non-GAAP Measures" below for a reconciliation of GAAP net income (loss) to NOI for our total portfolio and
NOI for our Same Store portfolio.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
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.
Additionally, homes acquired via the Starwood Waypoint Homes merger have been deemed to qualify for the Same Store portfolio
beginning in 2018 if they were stabilized, according to the Invitation Homes criteria for stabilization, within Starwood Waypoint Homes'
portfolio prior to the merger.
We believe presenting information about the portion of our portfolio that has been fully operational for the entirety of a given reporting
period and its prior year comparison period provides investors with meaningful information about the performance of our comparable
homes across periods and about trends in our organic business. In order to provide meaningful comparative information across periods
that, in some cases, pre-date the Starwood Waypoint Homes merger, all information regarding the performance of the Same Store
portfolio for periods prior to December 31, 2017 is presented as though the Starwood Waypoint Homes merger was consummated on
January 1, 2017.
Turnover Rate
Turnover rate represents the number of instances that homes in an identified population become unoccupied in a given period, divided
by the number of homes in such population.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
(1) Represents revenues generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of total
revenues.
Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating
Expenses, Quarterly
(in thousands) (unaudited)
(1) Represents property operating and maintenance expenses generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using
Invitation Homes' definition of property operating and maintenance expenses.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
(1) Represents NOI generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of NOI.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
As of
March 31, 2018
Mortgage loans, net $ 7,614,460
Term loan facility, net 1,488,695
Revolving facility 15,000
Convertible senior notes, net 550,695
Total Debt per Balance Sheet 9,668,850
Retained and repurchased certificates (427,608)
Cash, ex-security deposits (1) (240,165)
Deferred financing costs 48,470
Unamortized discounts on note payable 27,555
Net Debt (A) $ 9,077,102
(1) Represents cash and cash equivalents and the non-security deposit portion of restricted cash.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2018 Q1 2017
Amortization of discounts on notes payable $ 2,254 $ 55
Amortization of deferred financing costs 3,995 11,327
Change in fair value of interest rate derivatives (253) 3,751
Amortization of swap fair value at designation 2,499 —
Total non-cash interest expense $ 8,495 $ 15,134
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.