Invitation Homes Announces Voluntary Prepayment of IH 2018-4 Securitization

Rhea-AI Summary

Invitation Homes (NYSE: INVH) has voluntarily prepaid the outstanding balance of its IH 2018-4 securitization, which had a principal balance of approximately $630.2 million as of September 30, 2024. The prepayment was executed using unrestricted cash from the company's August 2023 bond issuance. Following this strategic move, Invitation Homes has no debt maturing before 2027, and approximately 90 percent of the company's wholly-owned properties are now unencumbered.

Positive

• Elimination of near-term debt maturities until 2027
• 90% of wholly-owned properties now unencumbered, improving financial flexibility
• Successful execution of planned debt prepayment strategy using previous bond issuance proceeds

Negative

• None.

Insights

Financial Analyst

This strategic debt prepayment significantly strengthens INVH's financial position. The $630.2 million prepayment using previously raised bond proceeds demonstrates prudent liability management, extending the debt maturity profile to 2027 and beyond. The increase in unencumbered properties to 90% of wholly-owned assets provides enhanced financial flexibility and improved borrowing capacity.

This move reduces refinancing risk during a period of elevated interest rates while maintaining strong liquidity. The ability to prepay without penalty indicates favorable debt terms. Having 90% of properties unencumbered creates substantial asset flexibility for future financing needs or potential strategic transactions. This conservative balance sheet management should translate to lower borrowing costs and improved credit metrics going forward.

Earliest Debt Maturity Now in 2027; 90 Percent of Wholly-Owned Homes Now Unencumbered

DALLAS--(BUSINESS WIRE)-- Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”) announced today that it has voluntarily prepaid without penalty the outstanding balance of its IH 2018-4 securitization, as planned.

As of September 30, 2024, the IH 2018-4 securitization had an outstanding principal balance of approximately $630.2 million, inclusive of approximately $31.6 million of retained certificates held by Invitation Homes to comply with risk retention rules. The Company prepaid the IH 2018-4 securitization using unrestricted cash from its August 2023 bond issuance for the purpose of debt prepayment, consistent with the Company’s previously stated use of proceeds.

With the prepayment of IH 2018-4, the Company now has no debt maturing prior to 2027, and on a pro forma basis as of September 30, 2024, approximately 90 percent of the Company’s wholly-owned properties are unencumbered.

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.

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, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241111888456/en/

Investor Relations Contact:

Scott McLaughlin

844.456.INVH (4684)

IR@InvitationHomes.com

Media Relations Contact:

Kristi DesJarlais

844.456.INVH (4684)

Media@InvitationHomes.com

Source: Invitation Homes Inc.

FAQ

What was the outstanding balance of INVH's IH 2018-4 securitization that was prepaid?

The IH 2018-4 securitization had an outstanding principal balance of approximately $630.2 million as of September 30, 2024, including about $31.6 million in retained certificates.

When is Invitation Homes' (INVH) earliest debt maturity after the IH 2018-4 prepayment?

Following the prepayment of IH 2018-4 securitization, Invitation Homes has no debt maturing before 2027.

What percentage of INVH's wholly-owned properties are unencumbered after the IH 2018-4 prepayment?

Approximately 90 percent of Invitation Homes' wholly-owned properties are now unencumbered on a pro forma basis as of September 30, 2024.