Invitation Homes Reports Third Quarter 2024 Results

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Insights

Q3 2024 shows mixed results with notable strengths and challenges. Total revenues increased 6.9% to $660 million, while Core FFO per share grew 6.8% to $0.47. However, net income declined 27.8% to $95 million.

Key positives include strong occupancy at 97.0%, improved bad debt metrics at 1.0% and a credit rating upgrade to BBB+ from Fitch. The company's balance sheet remains solid with $2.02 billion in liquidity and 99.6% of debt fixed or swapped.

Hurricane impacts totaling $51.5 million (net of insurance) and moderating rent growth (blended 3.6% vs 5.9% last year) are key concerns. However, guidance revision upward suggests management confidence in the business model despite headwinds.

The single-family rental market shows resilience but with clear signs of normalization. Same Store NOI growth of 3.9% reflects healthy fundamentals, though slower than previous quarters. The acquisition of 926 homes for $331 million demonstrates continued portfolio expansion despite higher interest rates.

Notably, rent growth is moderating with renewal rates at 4.2% and new lease growth at 1.7%, significantly below last year's levels. This suggests increasing price sensitivity among renters but remains above inflation. The low turnover rate of 6.2% indicates strong resident retention, supporting stable cash flows.

10/30/2024 - 04:15 PM

DALLAS--(BUSINESS WIRE)-- 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.


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%.

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.
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
Core FFO per share — diluted	$1.86 to $1.90	$	1.88		$	1.87		$	0.01
AFFO per share — diluted	$1.57 to $1.61	$	1.59		$	1.58		$	0.01

Same Store Core Revenues growth ⁽¹⁾	4.0% to 4.5%		4.25	%		4.875	%	-62.5 bps
Same Store Core Operating Expenses growth ⁽²⁾	3.25% to 4.25%		3.75	%		5.75	%	-200.0 bps
Same Store NOI growth	4.0% to 5.0%		4.50	%		4.5	%	0.0 bps

Wholly owned acquisitions	$600 million to $1,000 million	$800 million			$800 million			$	—
JV acquisitions	$100 million to $300 million	$200 million			$200 million			$	—
Wholly 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.

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.

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.


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


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

Glossary and Reconciliations

Average Monthly Rent

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

Average Occupancy

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

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 Operating Expenses

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

Core Revenues

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

EBITDA, EBITDAre, and Adjusted EBITDAre

EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. The Company defines EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. National Association of Real Estate Investment Trusts (“Nareit”) recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. The Company defines EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax, impairment on depreciated real estate investments, and adjustments for unconsolidated joint ventures. Adjusted EBITDAre is defined as EBITDAre 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.

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.

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

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

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

Recurring Capital Expenditures or Recurring CapEx

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

Rental Rate Growth

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

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 1^st of the year in which the Same Store portfolio was established.

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

Total Homes / Total Portfolio

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

Turnover Rate

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


Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)

FFO Reconciliation	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⁾		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


(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.


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


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.


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.


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)	5.4x			5.5x



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

Note: Refer to “Glossary and Reconciliations” for metric definitions and reconciliations of non-GAAP financial measures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030353205/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 Invitation Homes (INVH) revenue growth in Q3 2024?

Invitation Homes reported total revenue growth of 6.9% year-over-year to $660 million in Q3 2024.

How much did INVH's net income decrease in Q3 2024?

Net income decreased 27.8% to $95 million in Q3 2024 compared to the same period last year.

What was INVH's Same Store NOI growth in Q3 2024?

Same Store NOI increased 3.9% year-over-year in Q3 2024.

How many homes did INVH acquire in Q3 2024?

Invitation Homes acquired 926 homes for approximately $331 million in Q3 2024.

Invitation Homes Reports Third Quarter 2024 Results

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Invitation Homes Reports Third Quarter 2024 Results

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