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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): July 30, 2019
Invitation Homes Inc.
(Exact Name of Registrant as Specified in its 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, including zip code)
(972) 421-3600
(Registrant’s telephone number, including area code)
N/A
(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))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol(s)
 
Name of Each Exchange on Which Registered
 
 
 
 
 
Common stock, $0.01 par value
 
INVH
 
New York Stock Exchange
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
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.
 
 
 







Item 2.02
Results of Operations and Financial Condition.
On July 30, 2019, Invitation Homes Inc. (the "Company") issued a press release announcing the results of the Company’s operations for the quarter ended June 30, 2019. 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 July 30, 2019, announcing results for the quarter ended June 30, 2019.








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
 
 
 
July 30, 2019




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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 2019 Earnings Release and Supplemental Information — page 1

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Earnings Press Release

Invitation Homes Reports Second Quarter 2019 Results
Dallas, TX, July 30, 2019 — Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), a leading owner and operator of single-family rental homes in the United States, today announced its second quarter 2019 financial and operating results.

Second Quarter 2019 Highlights
Year over year, total revenues increased 2.1% to $442 million, total property operating and maintenance expenses increased 0.7% to $167 million, and net income attributable to common stockholders increased to $39 million, or $0.07 per share.
Core FFO per share increased 5.2% year over year to $0.31, and AFFO per share increased 4.1% year over year to $0.25.
Same Store NOI grew 6.1% year over year on 4.2% Same Store Core revenue growth and 0.6% Same Store Core operating expense growth.
Same Store average occupancy was 96.5%, up 40 basis points year over year.
Same Store renewal rent growth of 5.4% and Same Store new lease rent growth of 5.2% drove Same Store blended rent growth to 5.3%, 60 basis points higher year over year.
As previously announced, in the second quarter of 2019 the Company completed a $115 million bulk acquisition of 463 homes in in-fill submarkets of Las Vegas and Atlanta that overlap closely with the Company's existing portfolio in those markets. Total acquisition and disposition volume in the quarter was $211 million and $205 million, respectively, as the Company continued to execute its capital recycling plan to further enhance portfolio quality.
As previously announced, in the second quarter of 2019 the Company closed its first ever term loan from a life insurance company, with a principal amount of $403 million. The loan ("IH 2019-1") has a twelve-year term, with total cost of funds fixed at 3.59% for the first 11 years and floating at LIBOR + 147 basis points in the twelfth year. Structural features of the loan provide for more flexibility in collateral release and substitution rights than most of the Company's other financings to date. Proceeds from the loan were used to repay secured debt.
The Company repaid $529 million of secured debt in the second quarter of 2019 with proceeds from IH 2019-1 and other cash on hand. As a result, the Company has no debt maturing prior to 2022. In July 2019, the Company voluntarily prepaid an additional $50 million of secured debt.
In accordance with its previously announced intent, on July 1, 2019 the Company completed settling conversions of its 3.0% Convertible Notes due July 1, 2019 ("2019 Convertible Notes") with common shares. Conversion of the 2019 Convertible Notes reduced pro forma net debt / EBITDAre to 8.4x, down from 9.0x at the end of 2018.
In the second quarter of 2019, affiliates of Blackstone completed two secondary offerings totaling 77.5 million shares of Invitation Homes common stock. Invitation Homes did not receive any proceeds from the transactions. After the transactions, Blackstone's ownership decreased to approximately 19% of total common shares and units outstanding as of June 30, 2019, pro forma the conversion of the 2019 Convertible Notes.

President & Chief Executive Officer Dallas Tanner comments: "We continued to execute well in the second quarter, leveraging strong fundamentals and our fully-integrated operating platform to drive another quarter of outstanding resident service and better-than-expected Same Store NOI growth of 6.1%. The strong leasing momentum with which we started the year has continued into peak season, as rent growth exceeded our expectations and prior year levels in the second quarter, while at the same time occupancy remained higher year over year at 96.5%. Enhancements to operating efficiency also remain a tailwind, with controllable expenses, net of resident recoveries, down over 7% year over year in the second quarter.

"We continue to see tremendous opportunity to refine and grow our business to enhance the experience of our residents, associates, and communities, while at the same time driving outsized risk-adjusted returns for shareholders. With excellent execution through the first half of the year, and supply and demand fundamentals that remain favorable in our markets, we are increasing the midpoint of our FY 2019 Same Store NOI growth guidance range by 75 basis points to 5.25%, and increasing the midpoints of our FY 2019 Core FFO and AFFO per share guidance ranges by $0.01 to $1.26 and $1.04, respectively."

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 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 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Net income (loss) (1)
 
$
0.07

 
$
(0.03
)
 
$
0.11

 
$
(0.06
)
 
FFO (1)
 
0.28

 
0.24

 
0.54

 
0.47

 
Core FFO (2)
 
0.31

 
0.29

 
0.64

 
0.58

 
AFFO (2)
 
0.25

 
0.24

 
0.53

 
0.48

 
 
 
 
 
 
 
 
 
 
 
(1)
In accordance with GAAP and Nareit guidelines, net income (loss) per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of the relevant period, unless such treatment is anti-dilutive to net income (loss) per share or FFO per share. As such, FFO per share in Q2 2019 and YTD 2019 are calculated by adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes, and including shares issued upon conversion of the 2019 Convertible Notes as shares outstanding in the denominator. Net income per share in Q2 2019 and YTD 2019 do not treat the 2019 Convertible Notes as if they were converted, as doing so would be anti-dilutive to net income per share.
(2)
Core FFO and AFFO per share reflect the 2019 Convertible Notes in the form in which they were outstanding during the period. Because the 2019 Convertible Notes were an interest-bearing liability during the periods reflected in the table, cash interest expense associated with the 2019 Convertible Notes has been included in Core FFO and AFFO in the numerators, and shares issued upon conversion of the 2019 Convertible Notes have not been included as shares outstanding in the denominators.

Net Income (Loss)
Net income in the second quarter of 2019 was $0.07 per share, compared to a net loss of $0.03 per share in the second quarter of 2018. Total revenues and total property operating and maintenance expenses in the second quarter of 2019 were $442 million and $167 million, respectively, compared to $432 million and $165 million, respectively, in the second quarter of 2018.

Net income in YTD 2019 was $0.11 per share, compared to a net loss of $0.06 per share in YTD 2018. Total revenues and total property operating and maintenance expenses in YTD 2019 were $877 million and $327 million, respectively, compared to $856 million and $326 million, respectively, in YTD 2018.

Core FFO
Year over year, Core FFO in the second quarter of 2019 increased 5.2% to $0.31 per share, primarily due to an increase in NOI and lower cash interest expense.

Year over year, Core FFO in YTD 2019 increased 9.7% to $0.64 per share, primarily due to an increase in NOI and lower cash interest expense.

AFFO
Year over year, AFFO in the second quarter of 2019 increased 4.1% to $0.25 per share, primarily driven by the increase in Core FFO described above.

Year over year, AFFO in YTD 2019 increased 10.7% to $0.53 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 2019 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:
 
72,787

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Core revenue growth (year-over-year)
 
4.2
%
 
 
 
4.5
%
 
 
 
Core operating expense growth (year-over-year)
 
0.6
%
 
 
 
0.3
%
 
 
 
NOI growth (year-over-year)
 
6.1
%
 
 
 
6.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Average occupancy
 
96.5
%
 
96.1
%
 
96.5
%
 
95.9
%
 
Turnover rate
 
8.5
%
 
9.5
%
 
14.8
%
 
17.2
%
 
 
 
 
 
 
 
 
 
 
 
Rental rate growth (lease-over-lease):
 
 
 
 
 
 
 
 
 
Renewals
 
5.4
%
 
4.7
%
 
5.3
%
 
4.8
%
 
New leases
 
5.2
%
 
4.8
%
 
4.5
%
 
3.7
%
 
Blended
 
5.3
%
 
4.7
%
 
5.0
%
 
4.4
%
 
 
 
 
 
 
 
 
 
 
 

Same Store NOI
For the Same Store portfolio of 72,787 homes, second quarter 2019 Same Store NOI increased 6.1% year over year on Same Store Core revenue growth of 4.2% and Same Store Core operating expense growth of 0.6%.

YTD 2019 Same Store NOI increased 6.8% year over year on Same Store Core revenue growth of 4.5% and Same Store Core operating expense growth of 0.3%.

Same Store Core Revenues
Second quarter 2019 Same Store Core revenue growth of 4.2% year over year was driven by a 4.0% increase in average monthly rent and a 40 basis point increase in average occupancy to 96.5%.

YTD 2019 Same Store Core revenue growth of 4.5% year over year was driven by a 4.1% increase in average monthly rent and a 60 basis point increase in average occupancy to 96.5%.

Same Store Core Operating Expenses
Second quarter 2019 Same Store Core operating expenses increased 0.6% year over year. Same Store controllable expenses, net of resident recoveries, decreased 7.2% year over year, driven most significantly by lower turnover, repairs and maintenance ("R&M"), and personnel costs. Offsetting the improvement in controllable expenses was a 7.0% year over year increase in Same Store property taxes.

YTD 2019 Same Store Core operating expenses increased 0.3% year over year. Same Store controllable expenses, net of resident recoveries, decreased 8.6% year over year, driven most significantly by lower turnover, R&M, and personnel costs. Year-over-year improvement in R&M expense was primarily attributable to process refinements resulting in more efficient delivery of high-quality care for residents and homes, in addition to a favorable first quarter comparison resulting from higher-than-normal work order volume in the first quarter of 2018. The favorable factors impacting controllable expense growth were partially offset by a negative impact from last year's realignment of utility bill-back timing that resulted in higher than normal resident recoveries in the first quarter of 2018. Same Store property taxes increased 5.9% year over year.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 4

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Investment Management Activity
In the second quarter of 2019, Invitation Homes acquired 740 homes for $211 million, including estimated renovation costs, and sold 779 homes for gross proceeds of $205 million, resulting in a total portfolio home count of 80,322 homes as of June 30, 2019. Acquisitions in the quarter included the previously announced $115 million bulk acquisition of 297 homes in Las Vegas and 166 homes in Atlanta, located within in-fill submarkets that overlap closely with Invitation Homes' existing footprint in those markets.

In YTD 2019, the Company acquired 948 homes for $273 million, including estimated renovation costs, and sold 1,433 homes for gross proceeds of $360 million.

Balance Sheet and Capital Markets Activity
As of June 30, 2019, the Company had $1,077 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 June 30, 2019 was $9,036 million, consisting of $6,961 million of secured debt and $2,075 million of unsecured debt.

As previously announced, in the second quarter of 2019 the Company completed a $403 million twelve-year secured term loan (IH 2019-1) with a U.K.-based life insurance company. Total cost of funds for the loan is fixed at 3.59% for the first 11 years, and then floats at LIBOR + 147 basis points in the twelfth year. The loan is prepayable with yield maintenance during the first 11 years, and prepayable with no yield maintenance in year 12. Structural features of the loan provide for more flexibility than in most of the Company's other secured financings to date.  Invitation Homes has the right to substitute properties representing up to 20% of the collateral pool annually, and up to 100% of the collateral pool over the life of the loan, subject to certain requirements and limitations outlined in the loan agreement.  In addition, four times after the first anniversary of the closing of the loan, and subject to certain requirements and limitations outlined in the loan agreement, Invitation Homes has the right to execute a special release of collateral representing up to 15% of the then-outstanding principal balance of the loan in order to bring the loan-to-value ratio back in line with the loan-to-value ratio as of the closing date.

Net proceeds from IH 2019-1 and other cash on hand were used in the second quarter of 2019 to repay the full $368 million balance of CSH 2016-2, eliminating all debt maturing prior to 2022, and to repay $161 million of other secured borrowings. In July 2019, the Company voluntarily prepaid an additional $50 million of secured borrowings under IH 2017-2. The secured debt repaid in the second quarter of 2019 and July 2019 carried a weighted average interest rate of LIBOR + 199 basis points.

On July 1, 2019, the Company completed settling conversions of its 2019 Convertible Notes with common shares. Conversion of the $230 million of 2019 Convertible Notes resulted in issuance of 12.6 million common shares.

Pro forma the conversion of the 2019 Convertible Notes, weighted average years to maturity as of June 30, 2019 was 5.5 years, and net debt / annualized Adjusted EBITDAre as of June 30, 2019 was 8.4x, down from 9.0x at the end of 2018.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 5

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Full Year 2019 Guidance Update
FY 2019 Guidance
 
 
 
 
 
 
 
 
Revised
 
Previous
 
 
 
FY 2019
 
FY 2019
 
 
 
Guidance
 
Guidance
 
Core FFO per share – diluted (1)
 
$1.23 - $1.29
 
$1.21 - $1.29
 
AFFO per share – diluted (1)
 
$1.01 - $1.07
 
$0.99 - $1.07
 
 
 
 
 
 
 
Same Store Core revenue growth
 
4.0% - 4.5%
 
3.8% - 4.4%
 
Same Store Core operating expense growth
 
2.0% - 3.0%
 
3.0% - 4.0%
 
Same Store NOI growth
 
5.0% - 5.5%
 
4.0% - 5.0%
 
 
 
 
 
 
 
(1)
For the purposes of reporting 2019 Core FFO and AFFO per share, the Company treats the 2019 Convertible Notes in the form in which they are outstanding during each period. Guidance treats the 2019 Convertible Notes as an interest-bearing liability in the first and second quarters of 2019, and as common shares in the third and fourth quarters of 2019.


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.

Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 10:00 a.m. Eastern Time on Wednesday, July 31, 2019 to discuss results for the second quarter of 2019. The domestic dial-in number is 1-888-317-6003, and the international dial-in number is 1-412-317-6061. The passcode is 8316870. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through August 31, 2019 and can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using the replay passcode 10133315, 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

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 6

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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 rental homes, 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
Kristi DesJarlais


Phone: 972.421.3587


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, and Section 21E of the Securities Exchange Act of 1934, as amended, which include, but are not limited to, statements related to the Company’s expectations regarding the 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 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. The Company believes these factors include, but are not limited to, those described 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, 2018, 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 2019 Earnings Release and Supplemental Information — page 7

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Consolidated Balance Sheets
($ in thousands, except shares and per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
December 31,
 
 
 
2019
 
2018
 
 
 
(unaudited)
 
 
 
Assets:
 
 
 
 
 
Investments in single-family residential properties, net
 
$
16,463,527

 
$
16,686,060

 
Cash and cash equivalents
 
77,046

 
144,940

 
Restricted cash
 
242,409

 
215,051

 
Goodwill
 
258,207

 
258,207

 
Other assets, net
 
672,964

 
759,170

 
Total assets
 
$
17,714,153

 
$
18,063,428

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Mortgage loans, net
 
$
6,509,962

 
$
7,201,654

 
Secured term loan, net
 
400,869

 

 
Term loan facility, net
 
1,492,304

 
1,490,860

 
Revolving facility
 

 

 
Convertible senior notes, net
 
561,830

 
557,301

 
Accounts payable and accrued expenses
 
227,983

 
169,603

 
Resident security deposits
 
151,995

 
148,995

 
Other liabilities
 
331,742

 
125,829

 
Total liabilities
 
9,676,685

 
9,694,242

 
 
 
 
 
 
 
Equity:
 
 
 
 
 
Stockholders' equity
 
 
 
 
 
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of June 30, 2019 and December 31, 2018
 

 

 
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 525,126,947 and 520,647,977 outstanding as of June 30, 2019 and December 31, 2018, respectively
 
5,251

 
5,206

 
Additional paid-in capital
 
8,686,927

 
8,629,462

 
Accumulated deficit
 
(469,129
)
 
(392,594
)
 
Accumulated other comprehensive loss
 
(265,370
)
 
(12,963
)
 
Total stockholders' equity
 
7,957,679

 
8,229,111

 
Non-controlling interests
 
79,789

 
140,075

 
Total equity
 
8,037,468

 
8,369,186

 
Total liabilities and equity
 
$
17,714,153

 
$
18,063,428

 
 
 
 
 
 
 
 
 
 
 
 
 


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 8

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Consolidated Statements of Operations
 
($ in thousands, except shares and per share amounts) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Rental revenues and other property income
 
$
441,582

 
$
432,426

 
$
877,082

 
$
856,095

 
 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Property operating and maintenance
 
166,574

 
165,423

 
326,920

 
326,190

 
Property management expense
 
16,021

 
14,348

 
31,181

 
31,512

 
General and administrative
 
15,956

 
24,636

 
42,494

 
52,272

 
Interest expense
 
95,706

 
97,226

 
189,689

 
189,525

 
Depreciation and amortization
 
133,031

 
146,450

 
266,640

 
290,950

 
Impairment and other
 
1,671

 
4,103

 
7,063

 
10,224

 
Total expenses
 
428,959

 
452,186

 
863,987

 
900,673

 
 
 
 
 
 
 
 
 
 
 
Other, net
 
610

 
1,631

 
3,735

 
3,367

 
Gain on sale of property, net of tax
 
26,172

 
3,941

 
43,744

 
9,443

 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
39,405

 
(14,188
)
 
60,574

 
(31,768
)
 
Net (income) loss attributable to non-controlling interests
 
(463
)
 
242

 
(810
)
 
553

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
 
38,942

 
(13,946
)
 
59,764

 
$
(31,215
)
 
Net income available to participating securities
 
(109
)
 
(209
)
 
(215
)
 
(431
)
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholders — basic and diluted
 
$
38,833

 
$
(14,155
)
 
$
59,549

 
$
(31,646
)
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding — basic
 
525,070,036

 
520,509,058

 
523,265,455

 
520,087,371

 
Weighted average common shares outstanding — diluted
 
525,933,643

 
520,509,058

 
524,190,469

 
520,087,371

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per common share — basic
 
$
0.07

 
$
(0.03
)
 
$
0.11

 
$
(0.06
)
 
Net income (loss) per common share — diluted
 
$
0.07

 
$
(0.03
)
 
$
0.11

 
$
(0.06
)
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.13

 
$
0.11

 
$
0.26

 
$
0.22

 
 
 
 
 
 
 
 
 
 
 


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 9

398967777_logo_horizontala08.jpg

Supplemental Schedule 1
Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
FFO Reconciliation
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Net income (loss) available to common stockholders
 
$
38,833

 
$
(14,155
)
 
$
59,549

 
$
(31,646
)
 
Net income available to participating securities
 
109

 
209

 
215

 
431

 
Non-controlling interests
 
463

 
(242
)
 
810

 
(553
)
 
Depreciation and amortization on real estate assets
 
131,782

 
144,947

 
264,302

 
288,055

 
Impairment on depreciated real estate investments
 
4,076

 
1,671

 
7,329

 
2,274

 
Net gain on sale of previously depreciated investments in real estate
 
(26,172
)
 
(3,941
)
 
(43,744
)
 
(9,443
)
 
FFO
 
$
149,091

 
$
128,489

 
$
288,461

 
$
249,118

 
 
 
 
 
 
 
 
 
 
 
Core FFO Reconciliation
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
FFO
 
$
149,091

 
$
128,489

 
$
288,461

 
$
249,118

 
Noncash interest expense
 
12,172

 
11,543

 
27,037

 
20,038

 
Share-based compensation expense
 
3,615

 
8,016

 
9,222

 
17,514

 
Offering related expenses
 
476

 

 
2,019

 

 
Merger and transaction-related expenses
 
1,552

 
4,236

 
4,347

 
8,603

 
Severance expense
 
375

 
1,681

 
7,344

 
4,340

 
Casualty losses, net
 
(2,405
)
 
2,432

 
(266
)
 
7,950

 
Core FFO
 
$
164,876

 
$
156,397

 
$
338,164

 
$
307,563

 
 
 
 
 
 
 
 
 
 
 
AFFO Reconciliation
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Core FFO
 
$
164,876

 
$
156,397

 
$
338,164

 
$
307,563

 
Recurring capital expenditures
 
(31,799
)
 
(28,848
)
 
(56,910
)
 
(54,241
)
 
Adjusted FFO
 
$
133,077

 
$
127,549

 
$
281,254

 
$
253,322

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholders
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding — diluted (1)
 
525,933,643
 
520,509,058

 
524,190,469

 
520,087,371

 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per common share — diluted (1)
 
$
0.07

 
$
(0.03
)
 
$
0.11

 
$
(0.06
)
 
 
 
 
 
 
 
 
 
 
 
FFO
 
 
 
 
 
 
 
 
 
FFO for per share calculation(1)
 
$
151,874

 
$
128,489

 
$
294,047

 
$
249,118

 
Weighted average common shares and OP Units outstanding — diluted (1)
 
544,335,990
 
530,509,568

 
544,365,617

 
530,417,389

 
 
 
 
 
 
 
 
 
 
 
FFO per share — diluted (1)
 
$
0.28

 
$
0.24

 
$
0.54

 
$
0.47

 
 
 
 
 
 
 
 
 
 
 
Core FFO and Adjusted FFO
 
 
 
 
 
 
 
 
 
Weighted average shares and units outstanding — diluted (2)
 
531,782,126
 
530,509,568

 
531,811,753

 
530,417,389

 
 
 
 
 
 

 
 
 
 
Core FFO per share — diluted (2)
 
$
0.31

 
$
0.29


$
0.64

 
$
0.58

 
AFFO per share — diluted (2)
 
$
0.25

 
$
0.24


$
0.53

 
$
0.48

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 10

398967777_logo_horizontala08.jpg

(1)
In accordance with GAAP and Nareit guidelines, net income (loss) per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of the relevant period, unless such treatment is anti-dilutive to net income (loss) per share or FFO per share. As such, FFO per share in Q2 2019 and YTD 2019 are calculated by adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes, and including shares issued upon conversion of the 2019 Convertible Notes as shares outstanding in the denominator. Net income per share in Q2 2019 and YTD 2019 do not treat the 2019 Convertible Notes as if they were converted, as doing so would be anti-dilutive to net income per share.
(2)
Core FFO and AFFO per share reflect the 2019 Convertible Notes in the form in which they were outstanding during the period. Because the 2019 Convertible Notes were an interest-bearing liability during the periods reflected in the table, cash interest expense associated with the 2019 Convertible Notes has been included in Core FFO and AFFO in the numerators, and shares issued upon conversion of the 2019 Convertible Notes have not been included as shares outstanding in the denominators.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 11


Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Amounts for Net Income (Loss) (1)
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Common shares — basic
 
525,070,036

 
520,509,058

 
523,265,455

 
520,087,371

 
Shares potentially issuable from vesting/conversion of equity-based awards
 
863,607

 

 
925,014

 

 
Total common shares — diluted
 
525,933,643

 
520,509,058

 
524,190,469

 
520,087,371

 
 
 
 
 
 
 
 
 
 
 
Weighted average amounts for FFO (1)
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Common shares — basic
 
525,070,036

 
520,509,058

 
523,265,455

 
520,087,371

 
OP units — basic
 
5,463,285

 
9,036,578

 
7,067,026

 
9,197,698

 
Shares potentially issuable from vesting/conversion of equity-based awards
 
1,248,805

 
963,932

 
1,479,272

 
1,132,320

 
Shares issuable from 2019 Convertible Notes
 
12,553,864

 

 
12,553,864

 

 
Total common shares and units — diluted
 
544,335,990

 
530,509,568

 
544,365,617

 
530,417,389

 
 
 
 
 
 
 
 
 
 
 
Weighted average amounts for Core and AFFO (2)
 
Q2 2019
 
Q2 2018
 
YTD 2019
 
YTD 2018
 
Common shares — basic
 
525,070,036

 
520,509,058

 
523,265,455

 
520,087,371

 
OP units — basic
 
5,463,285

 
9,036,578

 
7,067,026

 
9,197,698

 
Shares potentially issuable from vesting/conversion of equity-based awards
 
1,248,805

 
963,932

 
1,479,272

 
1,132,320

 
Total common shares and units — diluted
 
531,782,126

 
530,509,568

 
531,811,753

 
530,417,389

 
 
 
 
 
 
 
 
 
 
 
Period end amounts for Core FFO, and AFFO (2)
 
June 30, 2019
 
 
 
 
 
 
 
Common shares
 
525,126,947

 
 
 
 
 
 
 
OP units
 
5,463,285

 
 
 
 
 
 
 
Shares potentially issuable from vesting/conversion of equity-based awards
 
948,176

 
 
 
 
 
 
 
Total common shares and units  diluted
 
531,538,408

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
In accordance with GAAP and Nareit guidelines, net income (loss) per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of the relevant period, unless such treatment is anti-dilutive to net income (loss) per share or FFO per share. As such, FFO per share in Q2 2019 and YTD 2019 are calculated by adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes, and including shares issued upon conversion of the 2019 Convertible Notes as shares outstanding in the denominator. Net income per share in Q2 2019 and YTD 2019 do not treat the 2019 Convertible Notes as if they were converted, as doing so would be anti-dilutive to net income per share.
(2)
Core FFO and AFFO per share reflect the 2019 Convertible Notes in the form in which they were outstanding during the period. Because the 2019 Convertible Notes were an interest-bearing liability during the periods reflected in the table, cash interest expense associated with the 2019 Convertible Notes has been included in Core FFO and AFFO in the numerators, and shares issued upon conversion of the 2019 Convertible Notes have not been included as shares outstanding in the denominators.





Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 12

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Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — June 30, 2019 (1)
 
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wtd Avg
 
Wtd Avg
 
 
 
 
 
 
 
Interest
 
Years
 
Debt Structure
 
Balance
 
% of Total
 
Rate (2)
 
to Maturity (3)(4)
 
Secured:
 
 
 
 
 
 
 
 
 
Fixed (5)
 
$
1,402,070

 
15.4
%
 
4.0
%
 
9.1

 
Floating — swapped to fixed
 
5,020,000

 
55.6
%
 
3.4
%
 
5.6

 
Floating
 
538,484

 
6.0
%
 
3.8
%
 
6.3

 
Total secured
 
6,960,554

 
77.0
%
 
3.5
%
 
6.3

 
 
 
 
 
 
 
 
 
 
 
Unsecured:
 
 
 
 
 
 
 
 
 
Fixed (Convertible)
 
574,989

 
6.4
%
 
3.3
%
 
1.5

 
Floating — swapped to fixed
 
1,500,000

 
16.6
%
 
3.7
%
 
2.6

 
Floating
 

 
%
 
%
 

 
Total unsecured
 
2,074,989

 
23.0
%
 
3.6
%
 
2.3

 
 
 
 
 
 
 
 
 
 
 
Total Debt:
 
 
 
 
 
 
 
 
 
Fixed + floating swapped to fixed (5)
 
8,497,059

 
94.0
%
 
3.5
%
 
5.4

 
Floating
 
538,484

 
6.0
%
 
3.8
%
 
6.3

 
Total debt
 
9,035,543

 
100.0
%
 
3.5
%
 
5.4

 
Unamortized discounts on notes payable
 
(15,976
)
 
 
 
 
 
 
 
Deferred financing costs
 
(54,602
)
 
 
 
 
 
 
 
Total Debt per Balance Sheet
 
8,964,965

 
 
 
 
 
 
 
Retained and repurchased certificates
 
(333,905
)
 
 
 
 
 
 
 
Cash, ex-security deposits (6)
 
(167,982
)
 
 
 
 
 
 
 
Deferred financing costs
 
54,602

 
 
 
 
 
 
 
Unamortized discounts on notes payable
 
15,976

 
 
 
 
 
 
 
Net debt
 
$
8,533,656

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage Ratios
 
Q2 2019
 
 
 
 
 
 
 
Fixed charge coverage ratio
 
3.0
x
 
 
 
 
 
 
 
Net debt / annualized Adjusted EBITDAre (4)
 
8.6
x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The impacts of a July 2019 conversion of $229,989 of convertible notes maturing in 2019 to common shares and a July 2019 voluntary prepayment of $50,000 of outstanding borrowings under IH 2017-2, a securitization loan maturing in 2024, are not included in this table.
(2)
Includes the impact of interest rate swaps in place and effective as of June 30, 2019.
(3)
Assumes all extension options are exercised.
(4)
In July 2019, the Company completed settling conversions of its 2019 Convertible Notes with common shares. Net debt / annualized Adjusted EBITDAre and weighted average years to maturity presented in this table do not take into account the conversion. On a pro forma basis, whereby net debt is reduced for the impact of the conversion of the 2019 Convertible Notes, net debt / annualized Adjusted EBITDAre as of June 30, 2019 would have been 8.4x, and weighted average years to maturity as of June 30, 2019 would have been 5.5.
(5)
For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.
(6)
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 2019 Earnings Release and Supplemental Information — page 13

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Supplemental Schedule 2(c)
Debt Maturity Schedule — June 30, 2019 (1)
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving
 
 
 
 
 
 
 
Secured
 
Unsecured
 
Credit
 
 
 
% of
 
Debt Maturities, with Extensions (2)
 
Debt
 
Debt
 
Facility
 
Balance
 
Total
 
2019
 
$

 
$
229,989

 
$

 
$
229,989

 
2.5
%
 
2020
 

 

 

 

 
%
 
2021
 

 

 

 

 
%
 
2022
 

 
1,845,000

 

 
1,845,000

 
20.4
%
 
2023
 
758,893

 

 

 
758,893

 
8.4
%
 
2024
 
734,165

 

 

 
734,165

 
8.1
%
 
2025
 
3,114,333

 

 

 
3,114,333

 
34.5
%
 
2026
 
951,092

 

 

 
951,092

 
10.5
%
 
2027
 
998,607

 

 

 
998,607

 
11.1
%
 
Thereafter
 
403,464

 

 

 
403,464

 
4.5
%
 
 
 
6,960,554

 
2,074,989

 

 
9,035,543

 
100.0
%
 
Unamortized discounts on notes payable
 
(2,817
)
 
(13,159
)
 

 
(15,976
)
 
 
 
Deferred financing costs
 
(46,906
)
 
(7,696
)
 

 
(54,602
)
 
 
 
Total per Balance Sheet
 
$
6,910,831

 
$
2,054,134

 
$

 
$
8,964,965

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The impacts of a July 2019 conversion of $229,989 of convertible notes maturing in 2019 to common shares and a July 2019 voluntary prepayment of $50,000 of outstanding borrowings under IH 2017-2, a securitization loan maturing in 2024, are not included in this table.
(2)
Assumes all extension options are exercised.





















Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 14

398967777_logo_horizontala08.jpg

Supplemental Schedule 2(d)
Cost to Maturity of Debt as of June 30, 2019
($ 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)
 
3Q-4Q19
 
$
8,806,804

 
6.1
%
 
74.0
%
 
19.9
%
 
93.9
%
 
1.4
%
 
2.0
%
 
3.9
%
 
3.6
%
 
2020
 
8,805,554

 
2.0
%
 
78.2
%
 
19.8
%
 
98.0
%
 
1.4
%
 
2.3
%
 
3.9
%
 
3.8
%
 
2021
 
8,805,554

 
6.6
%
 
73.6
%
 
19.8
%
 
93.4
%
 
1.4
%
 
2.5
%
 
3.9
%
 
3.9
%
 
2022
 
7,126,787

 
16.3
%
 
63.8
%
 
19.9
%
 
83.7
%
 
1.4
%
 
2.9
%
 
4.0
%
 
4.1
%
 
2023
 
6,220,373

 
6.4
%
 
71.1
%
 
22.5
%
 
93.6
%
 
1.3
%
 
3.0
%
 
4.0
%
 
4.2
%
 
2024
 
6,157,531

 
6.5
%
 
70.7
%
 
22.8
%
 
93.5
%
 
1.3
%
 
3.0
%
 
4.0
%
 
4.2
%
 
2025
 
3,619,859

 
18.7
%
 
42.6
%
 
38.7
%
 
81.3
%
 
1.4
%
 
3.0
%
 
4.0
%
 
4.1
%
 
2026
 
1,425,522

 
1.6
%
 
%
 
98.4
%
 
98.4
%
 
1.4
%
 
N/A

 
4.0
%
 
4.0
%
 
2027
 
841,209

 
%
 
%
 
100.0
%
 
100.0
%
 
N/A

 
N/A

 
3.9
%
 
3.9
%
 
Thereafter(3)
 
403,464

 
%
 
%
 
100.0
%
 
100.0
%
 
N/A

 
N/A

 
3.6
%
 
3.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
In each period, represents June 30, 2019 debt that remains outstanding assuming all debt is held until final maturity with all extension options exercised. The impacts of a July 2019 conversion of $229,989 of convertible notes maturing in 2019 to common shares and a July 2019 voluntary prepayment of $50,000 of outstanding borrowings under IH 2017-2, a securitization loan maturing in 2024, are not included in this table.
(2)
Assumes June 30, 2019 LIBOR rate of 2.40% for all future periods.
(3)
For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.

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, 2019, as well as the rate for 30-day LIBOR as of June 30, 2019. 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 2019 Earnings Release and Supplemental Information — page 15

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Supplemental Schedule 3(a)
Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Homes, period-end
 
Q2 2019
 
 
 
 
 
 
 
 
 
 
 
Total portfolio
 
80,322

 
 
 
 
 
 
 
 
 
 
 
Same Store portfolio
 
72,787

 
 
 
 
 
 
 
 
 
 
 
Same Store % of Total
 
90.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Revenues
 
Q2 2019
 
Q2 2018
 
Change YoY
 
YTD 2019
 
YTD 2018
 
Change YoY
 
Total portfolio
 
$
423,416

 
$
418,974

 
1.1
 %
 
$
842,370

 
$
828,567

 
1.7
 %
 
Same Store portfolio
 
391,268

 
375,629

 
4.2
 %
 
777,423

 
744,053

 
4.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Core Operating expenses
 
Q2 2019
 
Q2 2018
 
Change YoY
 
YTD 2019
 
YTD 2018
 
Change YoY
 
Total portfolio
 
$
148,408

 
$
151,971

 
(2.3
)%
 
$
292,208

 
$
298,662

 
(2.2
)%
 
Same Store portfolio
 
134,253

 
133,422

 
0.6
 %
 
262,768

 
262,092

 
0.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
Q2 2019
 
Q2 2018
 
Change YoY
 
YTD 2019
 
YTD 2018
 
Change YoY
 
Total portfolio
 
$
275,008

 
$
267,003

 
3.0
 %
 
$
550,162

 
$
529,905

 
3.8
 %
 
Same Store portfolio
 
257,015

 
242,207

 
6.1
 %
 
514,655

 
481,961

 
6.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q2 2019 Earnings Release and Supplemental Information — page 16

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Supplemental Schedule 3(b)
Same Store Portfolio Operating Detail
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
 
Change
 
 
 
 
 
Change
 
 
Q2 2019
 
Q2 2018
 
YoY
 
Q1 2019
 
Seq
 
YTD 2019
 
YTD 2018
 
YoY
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental revenues
$
377,986

 
$
362,108

 
4.4
 %
 
$
374,005

 
1.1
 %
 
$
751,991

 
$
718,075

 
4.7
 %
 
Other property income (1)(2)
30,047

 
25,616

 
17.3
 %
 
27,168

 
10.6
 %
 
57,215

 
50,747

 
12.7
 %
 
Total revenues
408,033

 
387,724

 
5.2
 %
 
401,173

 
1.7
 %
 
809,206

 
768,822

 
5.3
 %
 
Less: Resident recoveries (1)(2)
(16,765
)
 
(12,095
)
 
38.6
 %
 
(15,018
)
 
11.6
 %
 
(31,783
)
 
(24,769
)
 
28.3
 %
 
Core revenues
391,268

 
375,629

 
4.2
 %
 
386,155

 
1.3
 %
 
777,423

 
744,053

 
4.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property taxes
67,714

 
63,272

 
7.0
 %
 
66,437

 
1.9
 %
 
134,151

 
126,700

 
5.9
 %
 
Insurance expenses
7,962

 
7,489

 
6.3
 %
 
7,573

 
5.1
 %
 
15,535

 
14,431

 
7.7
 %
 
HOA expenses
6,902