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Section 1: 8-K (8-K)

Document


 
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 9, 2018
Invitation Homes Inc.
(Exact Name of Registrant as Specified in Charter)
Maryland
 
001- 38004
 
90-0939055
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification No.)
1717 Main Street, Suite 2000, Dallas, Texas 75201
(Address of Principal Executive Offices) (Zip Code)
(972) 421-3600
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
 
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x 
 
 
 
 
 
 






Item 2.02
Results of Operations and Financial Condition.
On August 9, 2018, Invitation Homes Inc. (the "Company") issued a press release announcing the results of the Company’s operations for the quarter ended June 30, 2018. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
 
 
Press Release of Invitation Homes Inc. dated August 9, 2018, announcing results for the quarter ended June 30, 2018.









SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
INVITATION HOMES INC.
 
 
 
 
By:
/s/ Mark A. Solls
 
 
Name:
Mark A. Solls
 
 
Title:
Executive Vice President, Secretary
and Chief Legal Officer
Date: August 9, 2018







EXHIBIT INDEX

Exhibit No.
Description
 
 
Press Release of Invitation Homes Inc. dated August 9, 2018, announcing results for the quarter ended June 30, 2018.



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
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Table of Contents
















Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 1

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Earnings Press Release

Invitation Homes Reports Second Quarter 2018 Results
Dallas, TX, August 9, 2018 — Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), a leading owner and operator of single-family homes for lease in the United States, today announced its second quarter 2018 financial and operating results.

Second Quarter 2018 Highlights
Year-over-year, total revenues increased 78.5% to $432 million, total property operating and maintenance expenses increased 78.2% to $165 million, and net income (loss) attributable to common shareholders decreased to a $14 million loss, or a $0.03 loss per share.
Core FFO per share increased 19.3% year-over-year to $0.29 per share.
Same Store NOI grew 5.0% year-over-year on 4.5% Same Store Core revenue growth and 3.6% Same Store Core operating expense growth.
Same Store average occupancy was 96.0%, up 20 basis points year-over-year.
Continued strong Same Store renewal rent growth of 4.7% and a seasonal acceleration in new lease rent growth to 4.8% drove Same Store blended rent growth of 4.7%.
The Company has raised its expectation for total annual run-rate merger synergies by $5 million to $50 - $55 million. The Company expects to realize 75% of total cost synergies on a run-rate basis by the end of 2018, with the remainder to be realized by mid-2019.
As previously announced, in the second quarter of 2018, the Company repaid $2.3 billion of existing securitization debt maturing in 2020 with proceeds from two newly issued seven-year securitization loans. In July 2018, the Company repaid an additional $200 million of securitization debt maturing in 2021 using the remaining proceeds from its second quarter issuance and cash on hand. These transactions are expected to lower the weighted average spread on the Company's floating rate debt by 25 basis points, and extend weighted average maturity to 5.4 years.

Chief Executive Officer Fred Tuomi comments: "We continue to believe that favorable supply, demand, and demographics trends in our high-growth markets create a long future runway for outsized NOI and Core FFO growth. In the second quarter of 2018, we continued to execute well and provide outstanding resident service, achieving another quarter of lower year-over-year turnover that drove Same Store average occupancy to its highest level in the last six quarters at 96.0%, while blended rent growth remained strong at 4.7%. As a result, Same Store Core revenues grew 4.5% year-over-year in the second quarter of 2018, up from 4.1% year-over-year growth in the first quarter of 2018.

"We are maintaining the midpoints of our Same Store Core revenue growth and 2018 Core FFO per share guidance, and narrowing the ranges to 4.3% - 4.7% and $1.15 - $1.19. Favorable fundamentals are expected to continue supporting revenue growth, and better than expected interest expense savings due to opportunistic refinancing activity are likely to offset higher Same Store operating expenses. We are also pleased that synergy savings are expected to exceed our initial estimates, and achievement has occurred faster in 2018 than we originally anticipated.

"As we enter the second half of 2018, we remain focused on widening our competitive advantages in the marketplace - namely our people, locations, scale, and service - for the benefit of residents, associates, and shareholders."


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 2

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Financial Results
Net Income (Loss), FFO, Core FFO, and AFFO Per Share — Diluted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
 
 
Net income (loss) (1)
 
$
(0.03
)
 
$
0.02

 
$
(0.06
)
 
$
(0.06
)
 
 
 
FFO (2)
 
0.24

 
0.20

 
0.47

 
0.23

 
 
 
Core FFO (2)
 
0.29

 
0.25

 
0.58

 
0.50

 
 
 
AFFO (2)
 
0.24

 
0.21

 
0.48

 
0.43

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, net income (loss) per share for YTD 2017 has been calculated based on operating results for the period from February 1, 2017 through June 30, 2017, and the weighted average number of shares outstanding during that same period, in accordance with GAAP.
(2)
No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. For YTD 2017, FFO, Core FFO, and AFFO per share have been calculated based on operating results for the full period from January 1, 2017 through June 30, 2017, and as if shares issued in connection with the IPO were issued on January 1, 2017.

Net Income (Loss)
Net income (loss) attributable to common shareholders for the three months ended June 30, 2018 was a loss of $0.03 per share, compared to income of $0.02 per share for the three months ended June 30, 2017. Total revenues and total operating and maintenance expenses for the three months ended June 30, 2018 were $432 million and $165 million, respectively, compared to $242 million and $93 million, respectively, for the three months ended June 30, 2017.

Net income (loss) attributable to common shareholders for the six months ended June 30, 2018 was a loss of $0.06 per share, compared to a loss of $0.06 per share for the prior year period during which the Company was public from February 1, 2017 to June 30, 2017. Total revenues and total operating and maintenance expenses for the six months ended June 30, 2018 were $856 million and $326 million, respectively, compared to $481 million and $181 million, respectively, for the prior year period during which the Company was public from February 1, 2017 to June 30, 2017.

Core FFO
Year-over-year, Core FFO for the three months ended June 30, 2018 increased 19.3% to $0.29 per share, primarily due to an increase in NOI per share, driven by higher revenues, lower adjusted general and administrative expense per share, and lower cash interest expense per share.

Year-over-year, Core FFO for the six months ended June 30, 2018 increased 16.3% to $0.58 per share, primarily due to an increase in NOI per share, driven by higher revenues, lower adjusted general and administrative expense per share, and lower cash interest expense per share.

AFFO
Year-over-year, AFFO for the three months ended June 30, 2018 increased 14.5% to $0.24 per share, primarily driven by the increase in Core FFO described above.

Year-over-year, AFFO for the six months ended June 30, 2018 increased 10.7% to $0.48 per share, primarily driven by the increase in Core FFO described above.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 3

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Operating Results
Same Store Operating Results Snapshot
 
 
 
 
 
 
 
 
 
 
Number of homes in Same Store portfolio:
 
71,813

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
Core revenue growth (year-over-year)
 
4.5
%
 
 
 
4.3
%
 
 
 
Core operating expense growth (year-over-year)
 
3.6
%
 
 
 
4.3
%
 
 
 
NOI growth (year-over-year)
 
5.0
%
 
 
 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Average occupancy
 
96.0
%
 
95.8
%
 
95.9
%
 
95.8
%
 
Turnover rate
 
9.4
%
 
10.0
%
 
17.0
%
 
18.1
%
 
 
 
 
 
 
 
 
 
 
 
Rental rate growth (lease-over-lease):
 
 
 
 
 
 
 
 
 
New leases
 
4.8
%
 
5.5
%
 
3.7
%
 
4.5
%
 
Renewals
 
4.7
%
 
5.3
%
 
4.8
%
 
5.2
%
 
Blended
 
4.7
%
 
5.4
%
 
4.4
%
 
5.0
%
 
 
 
 
 
 
 
 
 
 
 

Same Store NOI
For the Same Store portfolio of 71,813 homes, second quarter 2018 Same Store NOI increased 5.0% year-over-year on Same Store Core revenue growth of 4.5% and Same Store Core operating expense growth of 3.6%.
 
YTD 2018 Same Store NOI increased 4.3% year-over-year on Same Store Core revenue growth of 4.3% and Same Store Core operating expense growth of 4.3%.

Same Store Core Revenues
Second quarter 2018 Same Store Core revenue growth of 4.5% year-over-year was driven by a 4.0% increase in average monthly rent, a 0.2% increase in average occupancy to 96.0%, and a 8.9% increase in other property income, net of resident reimbursements.

YTD 2018 Same Store Core revenue growth of 4.3% year-over-year was driven by a 4.0% increase in average monthly rent, a 0.1% increase in average occupancy to 95.9%, and a 9.3% increase in other property income, net of resident reimbursements.

Same Store Core Operating Expenses
Second quarter 2018 Same Store Core operating expenses increased 3.6% year-over-year, driven primarily by increases in repair and maintenance expenses and property taxes, partially offset by increased efficiencies in various controllable costs including leasing and marketing costs and personnel costs. The increase in repair and maintenance expenses was primarily attributable to two correctable issues: 1) performance declines in two markets that were significantly impacted by personnel challenges, in contrast to most markets which have experienced limited personnel challenges through the integration; and 2) temporary declines in service technician productivity as teams adapt to newly integrated repairs and maintenance management technology that was implemented on an accelerated timeline in the second quarter, amplified by the time of year in which work order volume is seasonally the highest. Ultimately, the newly integrated technology is expected to raise productivity by increasing the percentage of service trips completed by in-house maintenance technicians versus third party vendors, and bundling more work orders per service trip, but will likely take longer to optimize than initially expected.

YTD 2018 Same Store Core operating expenses increased 4.3% year-over-year, driven primarily by increases in repair and maintenance expenses and property taxes, partially offset by decreases in leasing and marketing costs and personnel costs. The increase in repair and maintenance expenses was primarily attributable to the second quarter 2018 challenges described above,

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 4

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as well as prioritization of service requests related to hurricane damage in the fourth quarter of 2017 that pushed routine, non-storm related service requests that otherwise would have been resolved in 2017 into the first quarter of 2018. With respect to property taxes, a one-time unfavorable impact in the first quarter of 2018 related to prior year Prop 13 accrual timing was offset by a corresponding one-time favorable impact in the second quarter of 2018.

Investment Management Activity
Invitation Homes acquired 263 homes for $79.6 million in the second quarter of 2018, including estimated renovation costs, and sold 348 homes for gross proceeds of $76.8 million, resulting in total portfolio home count of 82,424 homes at June 30, 2018.

Year-to-date, the Company acquired 453 homes for $132.2 million, including estimated renovation costs, and sold 599 homes for gross proceeds of $132.0 million.

Merger Integration Update
Important merger integration milestones were completed in the second quarter of 2018, ahead of schedule. Office space in fifteen of the Company's seventeen markets has now been consolidated, and integration of field teams and vendors onto one R&M management technology platform has been completed, both on an accelerated timeline. In addition, the Company launched its newly developed accounting platform in the third quarter of 2018.

As a result, synergy realization through August 8, 2018 has outpaced previous expectations by approximately $10 million. The Company has captured $34 million of annualized run-rate synergies to date, almost entirely related to G&A and property management, including $9 million of share-based compensation synergies. The final major integration milestone remaining to be accomplished is implementation of the Company's unified operating platform and field configuration in each market, with rollout to the field expected to begin in the fourth quarter of 2018, and be completed by mid-2019.

With the majority of integration milestones completed, cost synergies resulting from the merger can be estimated with greater certainty. As a result, the Company now expects annual run-rate cost synergies to be $5 million more favorable than its initial projection, and total between $50 million and $55 million. $35.0 million to $37.5 million of these synergies are now expected to be attributable to G&A and property management, and $15.0 million to $17.5 million of operating expense synergies continue to be expected. The Company continues to expect 75% of total identified cost synergies to be realized on a run-rate basis by the end of 2018, with the remainder to be achieved in the first half of 2019.

Balance Sheet and Capital Markets Activity
At June 30, 2018, the Company had $1,167 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility. The Company's total indebtedness at June 30, 2018 was $9,762 million, consisting of $7,687 million of secured debt and $2,075 million of unsecured debt.

As previously announced, the Company closed a seven-year (inclusive of extension options), floating rate securitization loan (IH 2018-2) on May 8, 2018 with a principal amount of $1,057 million, of which the Company retained $53 million to comply     with risk retention requirements. Total cost of funds for the loan was LIBOR + 138 basis points. On June 28, 2018, the Company closed another seven-year (inclusive of extension options), floating rate securitization loan (IH 2018-3) with a principal amount of $1,300 million, of which the Company retained $65 million to comply with risk retention requirements. Total cost of funds for the loan was LIBOR + 142 basis points. Net proceeds from IH 2018-2 and IH 2018-3 were used to repay in full the existing IH 2015-1, IH 2015-2, and IH 2015-3 floating rate securitization loans in the second quarter of 2018. In July 2018, the Company repaid an additional $200 million of securitization debt (CSH 2016-1) using the remaining proceeds from IH 2018-3 and cash on hand. These transactions are expected to lower the weighted average spread on the Company's floating rate debt by 25 basis points. As of June 30, 2018, and giving effect to the aforementioned second quarter and July transactions, weighted average years to maturity of the Company's debt would have been 5.4 years.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 5

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The Company entered into additional forward interest rate swaps in the second quarter of 2018 to extend the duration of its hedges accordingly to match the extended duration of its maturities. After giving effect to these swaps, and based on the Company's current capital structure, the weighted average interest rate on total debt during the second quarter of 2018 would have been 3.3%, and the percentage of debt that will be fixed rate or swapped to fixed rate is expected to increase to above 90% beginning in January 2020 versus today's approximately 80%. Additional detail related to expected changes in weighted average interest rate and exposure to floating interest rates, based on the Company's current capital structure and current LIBOR rates, can be found on Supplemental Schedule 2(d).

Dividend
As previously announced, on August 3, 2018 the Company's Board of Directors declared a quarterly cash dividend of $0.11 per share of common stock. The dividend will be paid on or before August 31, 2018 to shareholders of record as of the close of business on August 16, 2018.

Full Year 2018 Guidance Update
FY 2018 Guidance
 
 
 
 
 
 
 
 
Revised
 
Previous
 
 
 
FY 2018
 
FY 2018
 
 
 
Guidance
 
Guidance
 
Core FFO per share – diluted
 
$1.15 - $1.19
 
$1.13 - $1.21
 
AFFO per share – diluted
 
$0.94 - $0.98
 
$0.94 - $1.02
 
 
 
 
 
 
 
Same Store Core revenue growth
 
4.3 - 4.7%
 
4.0 - 5.0%
 
Same Store Core operating expense growth
 
4.6 - 5.4%
 
2.0 - 3.0%
 
Same Store NOI growth
 
3.8 - 4.8%
 
5.0 - 6.0%
 
 
 
 
 
 
 

Merger Synergy Impact
Guidance is inclusive of anticipated synergy savings resulting from Invitation Homes' merger with Starwood Waypoint Homes. Cost synergies are now expected to total $50 million to $55 million on a run-rate basis, up from previous guidance of $45 million to $50 million. The Company expects 75% of these total cost synergies to be realized on a run-rate basis by the end of 2018. The majority of NOI synergies are expected to be realized after transitioning to one operating platform for the Company’s field teams. Development of the unified operating platform remains on track to be completed in the fourth quarter of 2018, and related synergies remain on track to be achieved once market implementation of the platform is completed in the first half of 2019. As a result, the Company anticipates that synergy realization in 2018 will be almost entirely related to property management and G&A savings rather than NOI increases.

Changes to FY 2018 Guidance
The midpoints of revised Same Store Core revenue growth guidance and Core FFO per share guidance remain unchanged versus previous guidance, as favorable fundamentals are expected to continue support revenue growth, and lower than expected interest expense due to refinancing activity is likely to offset higher Same Store Core operating expenses. The midpoints of AFFO per share guidance and Same Store NOI guidance are lower than previous guidance, due primarily to temporarily higher expected operating expenses and capitalized expenses related to repairs and maintenance.

The increase in Same Store Core operating expense growth guidance is attributable to the two correctable issues related to repairs and maintenance expense discussed in the Operating Results section of this release, and an assumption that those issues continue to persist through the remainder of the year. At the midpoint, expense growth for all Same Store Core operating expenses, exclusive of real estate taxes, is now expected to be approximately 3.5%, versus an expected decrease of approximately 1% in the Company's previous guidance. At the midpoint, Same Store real estate taxes are expected to increase

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 6

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approximately 6.5%, consistent with initial expectations. The table below summarizes the drivers of changes to the Company's Same Store operating expense guidance at the midpoint.

Changes to Same Store Operating Expenses at Guidance Range Midpoint
 
 
 
 
 
 
 
 
Revised
 
Previous
 
 
 
FY 2018
 
FY 2018
 
 
 
Guidance Midpoint
 
Guidance Midpoint
 
Core operating expense growth, excluding real estate taxes (1)
 
3.5%
 
(1.0)%
 
Real estate tax growth (2)
 
6.5%
 
6.5%
 
Core operating expense growth (1)(2)
 
5.0%
 
2.5%
 
 
 
 
 
 
 
(1)
The increase in the midpoint of guidance for Core operating expense growth is entirely attributable to the two correctable issues related to repairs and maintenance expense discussed in the Operating Results section of this release, and an assumption that those issues continue to persist through the remainder of the year.
(2)
Includes the estimated impact of California property tax reassessments related to Proposition 13 due to the merger. Excluding this impact, year-over-year real estate expense growth guidance and Same Store Core operating expense growth guidance would be 5.0% and 4.25%, respectively.

Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income (loss), total revenues, and property operating and maintenance, or a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store revenue growth, Same Store operating expense growth, and Same Store NOI growth to the comparable GAAP financial measures because it is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on our GAAP results for the guidance period.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 7

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Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on Friday, August 10, 2018 to discuss results for the three months ended June 30, 2018. The domestic dial-in number is 1-888-317-6003, and the international dial-in number is 1-412-317-6061. The passcode is 3194017. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through September 10, 2018, and can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using the replay passcode 10121756, or by using the link at www.invh.com.

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.

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 in the Glossary in the Supplemental Information and, as applicable, reconciled to the most comparable GAAP measures.

About Invitation Homes
Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes across America. With over 80,000 homes for lease in 17 markets across the country, Invitation Homes is meeting changing lifestyle demands by providing residents access to updated homes with features they value, such as close proximity to jobs and access to good schools. The Company's mission statement, "Together with you, we make a house a home," reflects its commitment to high-touch service that continuously enhances residents' living experiences and provides homes where individuals and families can thrive.

Investor Relations Contact
Greg Van Winkle


Phone: 844.456.INVH (4684)


Email: IR@InvitationHomes.com

Media Relations Contact
Claire Parker


Phone: 202.257.2329


Email: Media@InvitationHomes.com

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which include, but are not limited to, statements related to the Company’s expectations regarding the anticipated benefits of the merger with Starwood Waypoint Homes, the performance of the Company’s business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks associated with achieving expected revenue synergies or cost savings from the merger, risks inherent to the single-family rental industry sector and the Company’s business model, macroeconomic factors beyond the Company’s control, competition in identifying and acquiring the Company’s properties, competition in the leasing market for quality residents, increasing property taxes, homeowners' association fees and insurance costs, the Company’s dependence on third parties for key services, risks related to evaluation of properties, poor resident selection and defaults and non-renewals by the Company’s residents, performance of the

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 8

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Company’s information technology systems, and risks related to the Company’s indebtedness. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I. Item 1A. Risk Factors," of the Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at http://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 and in the Company’s filings with the SEC. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 9

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Consolidated Balance Sheets
($ in thousands, except shares and per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
December 31,
 
 
 
2018
 
2017
 
 
 
(unaudited)
 
 
 
Assets:
 
 
 
 
 
Investments in single-family residential properties, net
 
$
17,122,086

 
$
17,312,264

 
Cash and cash equivalents
 
166,874

 
179,878

 
Restricted cash
 
243,048

 
236,684

 
Goodwill
 
258,207

 
258,207

 
Other assets, net
 
875,147

 
696,605

 
Total assets
 
$
18,665,362

 
$
18,683,638

 
 
 
 
 
 
 

 
 
 
 
 
Mortgage loans, net
 
$
7,620,487

 
$
7,580,153

 
Term loan facility, net
 
1,489,417

 
1,487,973

 
Revolving facility
 

 
35,000

 
Convertible senior notes, net
 
552,861

 
548,536

 
Accounts payable and accrued expenses
 
221,535

 
193,413

 
Resident security deposits
 
152,075

 
146,689

 
Other liabilities
 
45,410

 
41,999

 
Total liabilities
 
10,081,785

 
10,033,763

 
 
 
 
 
 
 
Equity:
 
 
 
 
 
Shareholders' equity
 
 
 
 
 
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding at June 30, 2018 and December 31, 2017
 

 

 
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 520,493,369 and 519,173,142 outstanding at June 30, 2018 and December 31, 2017, respectively
 
5,205

 
5,192

 
Additional paid-in-capital
 
8,619,302

 
8,602,603

 
Accumulated deficit
 
(303,801
)
 
(157,595
)
 
Accumulated other comprehensive income
 
118,954

 
47,885

 
Total shareholders' equity
 
8,439,660

 
8,498,085

 
Non-controlling interests
 
143,917

 
151,790

 
Total equity
 
8,583,577

 
8,649,875

 
Total liabilities and equity
 
$
18,665,362

 
$
18,683,638

 
 
 
 
 
 
 


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 10

394587527_logo_horizontala07.jpg

Consolidated Statements of Operations
 
($ in thousands, except shares and per share amounts) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
Revenues:
 
 
 
 
 
 
 
 
 
Rental revenues
 
$
403,848

 
$
228,504

 
$
799,640

 
$
454,600

 
Other property income
 
28,578

 
13,712

 
56,455

 
26,366

 
Total revenues
 
432,426

 
242,216

 
856,095

 
480,966

 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Property operating and maintenance
 
165,423

 
92,840

 
326,190

 
181,008

 
Property management expense
 
14,348

 
9,135

 
31,512

 
20,584

 
General and administrative
 
24,636

 
18,426

 
52,272

 
76,692

 
Depreciation and amortization
 
146,450

 
67,515

 
290,950

 
135,092

 
Impairment and other
 
4,103

 
706

 
10,224

 
1,910

 
Total operating expenses
 
354,960

 
188,622

 
711,148

 
415,286

 
Operating income
 
77,466

 
53,594

 
144,947

 
65,680

 
 
 
 
 
 
 
 
 
 
 
Other income (expenses):
 
 
 
 
 
 
 
 
 
Interest expense
 
(97,226
)
 
(57,358
)
 
(189,525
)
 
(125,930
)
 
Other, net
 
1,631

 
(869
)
 
3,367

 
(1,095
)
 
Total other income (expenses)
 
(95,595
)
 
(58,227
)
 
(186,158
)
 
(127,025
)
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
(18,129
)
 
(4,633
)
 
(41,211
)
 
(61,345
)
 
Gain on sale of property, net of tax
 
3,941

 
10,162

 
9,443

 
24,483

 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
(14,188
)
 
5,529

 
(31,768
)
 
(36,862
)
 
Net income (loss) attributable to non-controlling interests
 
242

 

 
553

 

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common shareholders
 
$
(13,946
)
 
$
5,529

 
$
(31,215
)
 
$
(36,862
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 
February 1, 2017
 
 
 

 

 
 
 
through
 
 
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) available to common shareholders — basic and diluted
 
$
(14,155
)
 
$
5,420

 
$
(31,646
)
 
$
(20,092
)
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding — basic
 
520,509,058

 
311,771,221

 
520,087,371

 
311,723,463

 
Weighted average common shares outstanding — diluted
 
520,509,058

 
312,271,578

 
520,087,371

 
311,723,463

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per common share — basic
 
$
(0.03
)
 
$
0.02

 
$
(0.06
)
 
$
(0.06
)
 
Net income (loss) per common share — diluted
 
$
(0.03
)
 
$
0.02

 
$
(0.06
)
 
$
(0.06
)
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.11

 
$
0.06

 
$
0.22

 
$
0.06

 
 
 
 
 
 
 
 
 
 
 

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 11

394587527_logo_horizontala07.jpg

Supplemental Schedule 1
Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
FFO Reconciliation
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
Net income (loss) available to common shareholders
 
$
(14,155
)
 
$
5,420

 
$
(31,646
)
 
$
(36,971
)
 
Net income available to participating securities
 
209

 
109

 
431

 
109

 
Non-controlling interests
 
(242
)
 

 
(553
)
 

 
Depreciation and amortization on real estate assets
 
144,947

 
66,699

 
288,055

 
133,352

 
Impairment on depreciated real estate investments
 
1,671

 
95

 
2,274

 
1,132

 
Net gain on sale of previously depreciated investments in real estate
 
(3,941
)
 
(10,162
)
 
(9,443
)
 
(24,483
)
 
FFO
 
$
128,489

 
$
62,161

 
$
249,118

 
$
73,139

 
 
 
 
 
 
 
 
 
 
 
Core FFO Reconciliation
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
FFO
 
$
128,489

 
$
62,161

 
$
249,118

 
$
73,139

 
Noncash interest expense
 
11,543

 
5,137

 
20,038

 
20,271

 
Share-based compensation expense
 
8,016

 
8,216

 
17,514

 
52,460

 
IPO related expenses
 

 
656

 

 
8,287

 
Merger and transaction-related expenses
 
4,236

 

 
8,603

 

 
Severance expense
 
1,681

 
392

 
4,340

 
437

 
Casualty losses, net
 
2,432

 
611

 
7,950

 
778

 
Core FFO
 
$
156,397

 
$
77,173

 
$
307,563

 
$
155,372

 
 
 
 
 
 
 
 
 
 
 
AFFO Reconciliation
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
Core FFO
 
$
156,397

 
$
77,173

 
$
307,563

 
$
155,372

 
Recurring capital expenditures
 
(28,848
)
 
(11,605
)
 
(54,241
)
 
(20,834
)
 
AFFO
 
$
127,549

 
$
65,568

 
$
253,322

 
$
134,538

 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding — diluted (1)
 
520,509,058
 
312,271,578

 
520,087,371

 
311,723,463

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per common share — diluted (1)
 
$
(0.03
)
 
$
0.02

 
$
(0.06
)
 
$
(0.06
)
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares and units outstanding — diluted (2)
 
530,509,568
 
312,271,578

 
530,417,389

 
311,723,463

 
 
 
 
 
 
 
 
 
 
 
FFO per share — diluted (2)
 
$
0.24

 
$
0.20

 
$
0.47

 
$
0.23

 
Core FFO per share — diluted (2)
 
$
0.29

 
$
0.25

 
$
0.58

 
$
0.50

 
AFFO per share — diluted (2)
 
$
0.24

 
$
0.21

 
$
0.48

 
$
0.43

 
 
 
 
 
 
 
 
 
 
 
(1)
No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, net income (loss) per share for YTD 2017 has been calculated based on operating results for the period from February 1, 2017 through June 30, 2017, and the weighted average number of shares outstanding during that same period, in accordance with GAAP.
(2)
No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. For YTD 2017, FFO, Core FFO, and AFFO per share have been calculated based on operating results for the full period from January 1, 2017 through June 30, 2017, and as if shares issued in connection with the IPO were issued on January 1, 2017.




Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 12


Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Amounts for Net Income (Loss) (1)
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
Total common shares — diluted
 
520,509,058

 
312,271,578

 
520,087,371

 
311,723,463

 
 
 
 
 
 
 
 
 
 
 
Weighted average amounts for FFO, Core FFO, and AFFO (2)
 
Q2 2018
 
Q2 2017
 
YTD 2018
 
YTD 2017
 
Common shares — diluted
 
521,472,990

 
312,271,578

 
521,219,691

 
311,723,463

 
OP units
 
9,036,578

 

 
9,197,698

 

 
Total common shares and units — diluted
 
530,509,568

 
312,271,578

 
530,417,389

 
311,723,463

 
 
 
 
 
 
 
 
 
 
 
Period end amounts for FFO, Core FFO, and AFFO
 
June 30, 2018
 
 
 
 
 
 
 
Common shares — diluted
 
521,828,650

 
 
 
 
 
 
 
OP units
 
9,036,578

 
 
 
 
 
 
 
Total common shares and units — diluted
 
530,865,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, YTD 2017 weighted average shares outstanding for net income (loss) are for the period from February 1, 2017 through June 30, 2017, in accordance with GAAP.
(2)
No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. As such, YTD 2017 weighted average shares and units outstanding for FFO, Core FFO, and AFFO are calculated as if shares issued in connection with the IPO were issued on January 1, 2017.


















Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 13

394587527_logo_horizontala07.jpg

Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — June 30, 2018
 
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wtd Avg
 
Wtd Avg
 
 
 
 
 
 
 
Interest
 
Years
 
Debt Structure
 
Balance
 
% of Total
 
Rate (1) (2)
 
to Maturity (2)
 
Secured:
 
 
 
 
 
 
 
 
 
Fixed
 
$
999,448

 
10.2
%
 
4.2
%
 
8.9

 
Floating — swapped to fixed
 
4,620,000

 
47.3
%
 
3.0
%
 
5.0

 
Floating
 
2,067,723

 
21.2
%
 
3.3
%
 
6.5

 
Total secured
 
7,687,171

 
78.7
%
 
3.3
%
 
5.9

 
 
 
 
 
 
 
 
 
 
 
Unsecured:
 
 
 
 
 
 
 
 
 
Fixed (Convertible)
 
574,993

 
5.9
%
 
3.3
%
 
2.5

 
Floating — swapped to fixed
 
1,500,000

 
15.4
%
 
3.8
%
 
3.6

 
Floating
 

 
%
 
%
 

 
Total unsecured
 
2,074,993

 
21.3
%
 
3.6
%
 
3.3

 
 
 
 
 
 
 
 
 
 
 
Total Debt:
 
 
 
 
 
 
 
 
 
Fixed + floating swapped to fixed
 
7,694,441

 
78.8
%
 
3.4
%
 
5.1

 
Floating
 
2,067,723

 
21.2
%
 
3.3
%
 
6.5

 
Total debt
 
9,762,164

 
100.0
%
 
3.4
%
 
5.4

 
Unamortized discounts on notes payable
 
(25,301
)
 
 
 
 
 
 
 
Deferred financing costs
 
(74,098
)
 
 
 
 
 
 
 
Total Debt per Balance Sheet
 
9,662,765

 
 
 
 
 
 
 
Retained and repurchased certificates
 
(486,550
)
 
 
 
 
 
 
 
Cash, ex-security deposits (3)
 
(258,037
)
 
 
 
 
 
 
 
Deferred financing costs
 
74,098

 
 
 
 
 
 
 
Unamortized discounts on notes payable
 
25,301

 
 
 
 
 
 
 
Net debt
 
$
9,017,577

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage Ratios
 
Q2 2018
 
 
 
 
 
 
 
Fixed charge coverage ratio
 
2.8
x
 
 
 
 
 
 
 
Net debt / annualized Adjusted EBITDAre
 
9.3
x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Includes the impact of interest rate swaps in place and effective as of June 30, 2018.
(2)
The impact of a July 2018 voluntary prepayment of $200,000 of the outstanding borrowings under CSH 2016-2, a securitized loan maturing in 2021, is not included in this table.
(3)
Represents cash and cash equivalents and the non-security deposit portion of restricted cash.




Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 14

394587527_logo_horizontala07.jpg

Supplemental Schedule 2(c)
Debt Maturity Schedule — June 30, 2018 (1)
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving
 
 
 
 
 
Wtd Avg
 
 
 
Secured
 
Unsecured
 
Credit
 
 
 
% of
 
Interest
 
Debt Maturities, with Extensions (2)
 
Debt
 
Debt
 
Facility
 
Balance
 
Total
 
Rate (3)
 
2018
 
$

 
$

 
$

 
$

 
%
 
%
 
2019
 

 
229,993

 

 
229,993

 
2.4
%
 
3.0
%
 
2020
 
652,422

 

 

 
652,422

 
6.7
%
 
3.0
%
 
2021
 
1,132,514

 

 

 
1,132,514

 
11.6
%
 
3.2
%
 
2022
 

 
1,845,000

 

 
1,845,000

 
18.9
%
 
3.7
%
 
2023
 
768,807

 

 

 
768,807

 
7.9
%
 
2.7
%
 
2024
 
863,263

 

 

 
863,263

 
8.8
%
 
3.6
%
 
2025
 
3,270,717

 

 

 
3,270,717

 
33.5
%
 
3.1
%
 
2026
 

 

 

 

 
%
 
%
 
2027
 
999,448

 

 

 
999,448

 
10.2
%
 
4.2
%
 
 
 
7,687,171

 
2,074,993

 

 
9,762,164

 
100.0
%
 
3.4
%
 
Unamortized discounts on notes payable
 
(3,169
)
 
(22,132
)
 

 
(25,301
)
 
 
 
 
 
Deferred financing costs
 
(63,515
)
 
(10,583
)
 

 
(74,098
)
 
 
 
 
 
Total per Balance Sheet
 
$
7,620,487

 
$
2,042,278

 
$

 
$
9,662,765

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The impact of a July 2018 voluntary prepayment of $200,000 of the outstanding borrowings under CSH 2016-2, a securitized loan maturing in 2021, is not included in this table.
(2)
Assumes all extension options are exercised.
(3)
Includes the impact of interest rate swaps in place and effective as of June 30, 2018.





















Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 15

394587527_logo_horizontala07.jpg

Supplemental Schedule 2(d)
Cost to Maturity of Debt as of June 30, 2018
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of Weighted Average Debt Outstanding by Type
 
Weighted Average Cost by Instrument Type
 
 
 
Weighted Average
 
Issued
 
Issued
 
 
 
Total
 
Spread to
 
Fixed Cost
 
 
 
Total Debt
 
 
 
Amount of
 
Floating
 
Floating
 
 
 
Fixed
 
 LIBOR
 
of
 
 
 
Including
 
 
 
Debt
 
and
 
but Swapped
 
Issued
 
or Swapped
 
For Floating
 
Interest Rate
 
Fixed Rate
 
Swap
 
 
 
Outstanding (1)
 
Not Swapped
 
to Fixed
 
Fixed
 
 to Fixed
 
Rate Debt
 
Rate Swaps
 
Debt
 
Impact (2)
 
2H18
 
$
9,762,164

 
21.2
%
 
62.7
%
 
16.1
%
 
78.8
%
 
1.6
%
 
1.5
%
 
3.9
%
 
3.4
%
 
2019
 
9,646,853

 
17.6
%
 
67.2
%
 
15.2
%
 
82.4
%
 
1.6
%
 
1.9
%
 
4.0
%
 
3.6
%
 
2020
 
9,220,222

 
10.7
%
 
74.7
%
 
14.6
%
 
89.3
%
 
1.6
%
 
2.3
%
 
4.0
%
 
3.9
%
 
2021
 
8,590,256

 
8.9
%
 
75.4
%
 
15.7
%
 
91.1
%
 
1.6
%
 
2.5
%
 
4.0
%
 
4.0
%
 
2022
 
6,068,469

 
18.9
%
 
64.4
%
 
16.7
%
 
81.1
%
 
1.4
%
 
2.9
%
 
4.2
%
 
4.1
%
 
2023
 
5,152,386

 
10.3
%
 
70.3
%
 
19.4
%
 
89.7
%
 
1.4
%
 
2.9
%
 
4.2
%
 
4.2
%
 
2024
 
5,081,539

 
10.4
%
 
69.9
%
 
19.7
%
 
89.6
%
 
1.4
%
 
2.9
%
 
4.2
%
 
4.2
%
 
2025
 
2,309,558

 
10.2
%
 
46.5
%
 
43.3
%
 
89.8
%
 
1.4
%
 
2.9
%
 
4.2
%
 
4.2
%
 
2026
 
999,448

 
%
 
%
 
100.0
%
 
100.0
%
 
N/A

 
N/A

 
4.2
%
 
4.2
%
 
2027
 
438,114

 
%
 
%
 
100.0
%
 
100.0
%
 
N/A

 
N/A

 
4.2
%
 
4.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
In each period, represents June 30, 2018 debt that remains outstanding, assuming all debt is held until final maturity with all extension options exercised.
(2)
Assumes June 30, 2018 LIBOR rate of 2.09% for all future periods.


Note: Schedule 2(d) is presented to show the estimated overall cost of Invitation Homes' debt, based on debt and interest rate swaps in place as of June 30, 2018, as well as the rate for 30-day LIBOR as of June 30, 2018. New debt not presented in this table may be issued, and/or existing debt presented in this table may be repaid prior to maturity. Similarly, new interest rate swaps may be put in place. 30-day LIBOR may also change. The aforementioned activities may change the amount of outstanding debt, the percentage of debt floating, swapped, or fixed, and/or the weighted average cost of debt and hedging instruments from what is presented in Schedule 2(d).

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 16

394587527_logo_horizontala07.jpg

Supplemental Schedule 3(a)
Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Homes, period-end
 
Q2 2018
 
 
 
 
 
 
 
 
 
 
 
Total portfolio
 
82,424

 
 
 
 
 
 
 
 
 
 
 
Same Store portfolio
 
71,813

 
 
 
 
 
 
 
 
 
 
 
Same Store % of Total
 
87.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Revenues
 
Q2 2018
 
Q2 2017
 
Change YoY
 
YTD 2018
 
YTD 2017
 
Change YoY
 
Total portfolio
 
$
418,974

 
$
237,217

 
76.6
%
 
$
828,567

 
$
471,419

 
75.8
%
 
Same Store portfolio
 
368,526

 
352,712

 
4.5
%
 
730,470

 
700,330

 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Core Operating expenses
 
Q2 2018
 
Q2 2017
 
Change YoY
 
YTD 2018
 
YTD 2017
 
Change YoY
 
Total portfolio
 
$
151,971

 
$
87,841

 
73.0
%
 
$
298,662

 
$
171,461

 
74.2
%
 
Same Store portfolio
 
133,321

 
128,694

 
3.6
%
 
261,451

 
250,647

 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Net Operating Income
 
Q2 2018
 
Q2 2017
 
Change YoY
 
YTD 2018
 
YTD 2017
 
Change YoY
 
Total portfolio
 
$
267,003

 
$
149,376

 
78.7
%
 
$
529,905

 
$
299,958

 
76.7
%
 
Same Store portfolio
 
235,205

 
224,018

 
5.0
%
 
469,019

 
449,683

 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2018 Earnings Release and Supplemental Information — page 17

394587527_logo_horizontala07.jpg

Supplemental Schedule 3(b)
Same Store Portfolio Operating Detail
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
 
Change
 
 
 
 
 
Change
 
 
Q2 2018
 
Q2 2017
 
YoY
 
Q1 2018
 
Seq
 
YTD 2018
 
YTD 2017
 
YoY
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental revenues
$
355,356

 
$
340,614

 
4.3
 %
 
$
349,813

 
1.6
 %
 
$
705,169

 
$
677,182

 
4.1
 %
 
Other property income (1)
24,712

 
21,207

 
16.5
 %
 
24,171

 
2.2
 %
 
48,883

 
39,591

 
23.5
 %
 
Total revenues
380,068

 
361,821

 
5.0
 %
 
373,984

 
1.6
 %
 
754,052

 
716,773

 
5.2
 %
 
Less: Resident recoveries (1)
(11,542
)
 
(9,109
)
 
26.7
 %
 
(12,040
)
 
(4.1
)%
 
(23,582
)
 
(16,443
)
 
43.4
 %
 
Core revenues
368,526

 
352,712

 
4.5
 %
 
361,944

 
1.8
 %
 
730,470

 
700,330

 
4.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property taxes (2)
63,296

 
61,055

 
3.7
 %
 
62,950

 
0.5
 %