Invitation Homes Reports Third Quarter 2024 Results

Rhea-AI Summary

Invitation Homes (NYSE: INVH) reported Q3 2024 financial results with total revenues increasing 6.9% to $660 million. Net income decreased 27.8% to $95 million, with earnings per share at $0.15. Core FFO per share grew 6.8% to $0.47, while AFFO per share increased 7.2% to $0.38. Same Store NOI rose 3.9% with 3.6% revenue growth. The company acquired 926 homes for $331 million and sold 331 homes for $128 million. The company raised its full year 2024 guidance, with Core FFO expected at $1.88 per share and AFFO at $1.59 per share. Hurricane damages resulted in estimated expenses of $51.5 million net of insurance recoveries.

Positive

• Total revenues increased 6.9% to $660 million
• Core FFO per share grew 6.8% to $0.47
• AFFO per share increased 7.2% to $0.38
• Same Store NOI increased 3.9%
• Credit rating upgraded to BBB+ from BBB
• Raised full year 2024 guidance

Negative

• Net income decreased 27.8% to $95 million
• Net income per share decreased to $0.15 from $0.21
• Hurricane damages resulted in $51.5 million in expenses
• New lease rent growth declined to 1.7% from 4.6% year-over-year

Insights

Financial Analyst

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.

Real Estate Market Analyst

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.

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.