Invitation Homes Inc
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
INVH$27.10-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-01.
0001687229-24-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0001687229-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 194 previous paragraphs and 207 current paragraphs.
115 unchanged; 58 reworded; 24 added; 14 removed; 7 previous and 10 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Gains (Losses) on Investments in Equity and Other Securities, net
Current report
Other, net includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses.
Current report
Income (Losses) from Investments in Unconsolidated Joint Ventures
Current report
Gains on Investments in Equity and Other Securities, net
Current report
For the three months ended June 30, 2024, gains on investments in equity and other securities, net of $1.5 million was comprised of a$1.6 million net realized gain from exercised warrants and $0.1 million ofnet unrealized losses recognized oninvestments held at period end. For the three months ended June 30, 2023, gains on investments in equity and other securities, net of $0.5 million net gains was comprised of net unrealized gains recognized oninvestments held at period end.
Current report
Our share of equity in earnings and/or losses from unconsolidated joint ventures was a net loss of $5.5 million and $2.0 million for the three months ended June 30, 2024 and 2023, respectively. The increase in loss is primarily driven by an increase of $2.4 million in interest expense, including $1.4 million of decreases in the fair value of interest rate caps for certain of our joint ventures, and an increase in depreciation expense of $0.8 million between the respective periods. These changes are a result of the formation of and commencement of operations in new joint ventures, cumulative capital expenditures, and an increase in the number of homes within our joint venture investments.
Current report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Current report
For the six months ended June 30, 2024 and 2023, total revenues were $1,299.5 million and $1,190.3 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
Current report
Average occupancy for the six months ended June 30, 2024 and 2023 for the total portfolio was 96.6% and 97.1%, respectively. Average monthly rent per occupied home for the total portfolio for the six months ended June 30, 2024 and 2023 was $2,369 and $2,274, respectively, a 4.2% increase. For our Same Store portfolio, average occupancy was 97.7% for each of the six months ended June 30, 2024 and 2023, respectively, and average monthly rent per occupied home for the six months ended June 30, 2024 and 2023 was $2,374 and $2,275, respectively, a 4.4% increase.
Current report
For the six months ended June 30, 2024 and 2023, management fee revenues totaled $29.9 million and $6.8 million, respectively. The increase is due to an increase in the number of homes for which we provide property and asset management services. As of June 30, 2024 and 2023, we provided property and asset management services for 21,146 and 3,641 homes, respectively, of which 3,885 and 3,641 homes, respectively, were owned by our unconsolidated joint ventures.
Current report
For the six months ended June 30, 2024 and 2023, total expenses were $1,119.7 million and $996.8 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
Current report
Depreciation and amortization expense increased to $351.9 million for the six months ended June 30, 2024 from $330.4 million for the six months ended June 30, 2023 due to an increase in cumulative capital expenditures and a 1,484 home increase in the average number of homes owned during the six months ended June 30, 2024 compared to thesix months ended June 30, 2023.
Current report
Impairment and other expenses were $14.5 million and $3.0 million for the six months ended June 30, 2024 and 2023, respectively. During the six months ended June 30, 2024, impairment and other expenses were comprised of $14.4 million of net casualty losses for repairs from recent storm activity in excess of amounts recoverable from insurance coverage and $0.1 million of impairment losses on our single-family residential properties. During the six months ended June 30, 2023, impairment and other expenses were comprised of net casualty losses of $2.7 million and impairment losses of $0.3 million on our single-family residential properties.
Current report
Gains on Investments in Equity and Other Securities, net
Current report
For the six months ended June 30, 2024, gains on investments in equity and other securities, net of $1.3 million was comprised of a$1.6 million net realized gain from exercised warrants and$0.3 million net unrealized gains recognized since December 31, 2023 on investments held as of June 30, 2024. For the six months ended June 30, 2023, gains on investments in equity and other securities, net of $0.6 million was comprised of net unrealized gains recognized on investments held as of June 30, 2023.
Current report
Other, net increased to $48.0 million of expense for the six months ended June 30, 2024 from $5.4 million of expense for the six months ended June 30, 2023, primarily due to accruals for certain litigation and regulatory costs, partially offset by an increase in interest income on cash balances. Thesix months ended June 30, 2024 includes a $22.0 million accrual for a settlement that resolved the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs, as well as a $37.5 million accrual for an estimated probable loss with respect to an ongoing inquiry from the FTC.
Current report
Gain on sale of property, net of tax was $93.8 million and $76.5 million for the six months ended June 30, 2024 and 2023, respectively. An increase in the net proceeds per home sold for the six months ended June 30, 2023 to the six months ended June 30, 2024 was the primary driver of the increase.
Current report
As of June 30, 2024, we provided property and asset management services for 21,146 homes, of which 3,885 homes were owned by our unconsolidated joint ventures.
Current report
•property management, general and administrative, and other entity-level commitments and expenses;
Current report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Current report
(7)Represents commitments, net of previously funded deposits, to acquire 2,722 homes, including commitments totaling $790.8 million to acquire 2,689 homes pursuant to binding purchase agreements with certain homebuilders.
Current report
(3)Includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses.
Current report
(3)Includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses.
Current report
(3)Includes a $22,000 accrual for a settlement that resolved the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs, as well as a $37,500 accrual for an estimated probable loss with respect to an ongoing inquiry from the FTC.
Removed paragraphs (14)
Previous report
In August 2021, we received a letter from the staff of the Federal Trade Commission (“FTC”), requesting information as to how we conduct our business generally and how business was conducted during the COVID-19 pandemic specifically. We have been cooperating with this request and have commenced preliminary discussions with the FTC related to a potential resolution of their inquiry; however, there can be no assurance that any current or future discussions with the FTC to resolve this inquiry will be successful. We are unable to predict the duration, scope, cost, or outcome of these preliminary discussions with the FTC or the ultimate outcome of the FTC inquiry and its effect on our business, prospects, operating results, and financial condition.
Previous report
Revenues
Previous report
Expenses
Previous report
Other, net
Previous report
Other, net includes interest income and other miscellaneous income and expenses.
Previous report
Revenues
Previous report
Expenses
Previous report
For the three months ended March 31, 2024 and 2023, gains (losses) on investments in equity securities, net of $0.2 million of net losses and $0.1 million of net gains, respectively, was comprised of net unrealized gains (losses) recognized on investments held as of each respective period end.
Previous report
Other, net
Previous report
As of March 31, 2024, we provided property and asset management services for 18,122 homes, of which 3,844 homes were owned by our unconsolidated joint ventures.
Previous report
•property management and general and administrative expenses;
Previous report
(7)Represents commitments pursuant to binding purchase agreements with certain homebuilders for the purchase of 1,970 homes over the next four years. Remaining commitments under these agreements total $629.4 million as of March 31, 2024.
Previous report
(3)Includes interest income and other miscellaneous income and expenses.
Previous report
(3)Includes interest income and other miscellaneous income and expenses.
Reworded paragraphs (58)
Previous wording
We also provide comprehensive asset and property management services to portfolio owners of single-family rental homes on a contractual basis. Our services include resident support, maintenance, marketing, and administrative functions. As of March 31, 2024, we provided property and asset management services for 18,122 homes, of which 3,844 homes were owned by our unconsolidated joint ventures.
Current wording
We also provide comprehensive asset and property management services to portfolio owners of single-family rental homes on a contractual basis. Our services include resident support, maintenance, marketing, and administrative functions. As of June 30, 2024, we provided property and asset management services for 21,146 homes, of which 3,885 homes were owned by our unconsolidated joint ventures.
Previous wording
Consequences of global climate change range from more frequent extreme weather events to extensive governmental policy developments and shifts in consumer preferences, which have the potential individually or collectively to disrupt our business as well as negatively affect our suppliers, contractors, and residents. Experiencing or addressing the various physical, regulatory, and transition risks from climate change may significantly reduce our revenues and profitability or cause us to generate losses. Government authorities and various interest groups are promoting laws and regulations relating to climate change, including regulations aimed at drastically increasing reporting and governance related to climate change as well as focused on limiting greenhouse gas emissions and the implementation of “green” building codes. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements will apply to us beginning with our fiscal year ending December 31, 2025. We are currently assessing the effect of new rules on our condensed consolidated financial statements and related disclosures. Additionally, the State of California recently passed the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act that will impose broad climate-related disclosure obligations on certain companies doing business in California, including us, starting in 2026. Unless legal challenges to the foregoing new rules prevail or they are otherwise modified prior to effective dates, we will become subject to the rules as adopted, and they could significantly increase compliance burdens and associated regulatory costs and complexity.
Current wording
Consequences of global climate change range from more frequent extreme weather events to extensive governmental policy developments and shifts in consumer preferences, which have the potential individually or collectively to disrupt our business as well as negatively affect our suppliers, contractors, and residents. Experiencing or addressing the various physical, regulatory, and transition risks from climate change may significantly reduce our revenues and profitability or cause us to generate losses. Government authorities and various interest groups are promoting laws and regulations relating to climate change, including regulations aimed at drastically increasing reporting and governance related to climate change as well as focused on limiting greenhouse gas emissions and the implementation of “green” building codes. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. The disclosure requirements will apply to us beginning with our fiscal year ending December 31, 2025. Subsequent to issuance, the rules became the subject of litigation, and the SEC has issued a stay to allow the legal process to proceed. We are currently assessing the effect of new rules on our condensed consolidated financial statements and related disclosures. Additionally, the State of California recently passed the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act that will impose broad climate-related disclosure obligations on certain companies doing business in California, including us, starting in 2026. Unless legal challenges to the foregoing new rules prevail or they are otherwise modified prior to effective dates or the effective dates are delayed, we will become subject to the rules as adopted, and they could significantly increase compliance burdens and associated regulatory costs and complexity.
Previous wording
(5)Represents homes located outside of our 16 core markets, including those acquired as part of our July 2023 portfolio acquisition that are generally being held for sale or evaluated for disposition once they become vacant.
Current wording
(5)Represents homes located outside of our 16 core markets as of June 30, 2024, including 68 homes located in Nashville and 26 homes located in other markets that are generally being held for sale.
Previous wording
Our results of operations and financial condition are affected by numerous factors, many of which are beyond our control. See Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K for more information regarding factors that could materially adversely affect our results of operations and financial condition. Key factors that impact our results of operations and financial condition include market fundamentals, rental rates and occupancy levels, collection rates, turnover rates and days to re-resident homes, property improvements and maintenance, property acquisitions and renovations, and financing arrangements. Sensitivity to many of these factors has been heightened as a result of current macroeconomic conditions, including rapidly accelerating economic inflation, bank failures, and high interest rates. Additionally, each of these factors may also impact the results of operations and financial condition of our joint venture investments and those of third parties for whom we perform property and asset management services, which would impact the amount of management fee revenues and income (loss) from investments in unconsolidated joint ventures that we earn.
Current wording
Our results of operations and financial condition are affected by numerous factors, many of which are beyond our control. See Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K for more information regarding factors that could materially adversely affect our results of operations and financial condition. Key factors that impact our results of operations and financial condition include market fundamentals, rental rates and occupancy levels, collection rates, turnover rates and days to re-resident homes, property improvements and maintenance, property acquisitions and renovations, and financing arrangements. Sensitivity to many of these factors has been heightened as a result of current macroeconomic conditions, including sustained economic inflation, bank failures, and high interest rates. Additionally, each of these factors may also impact the results of operations and financial condition of our joint venture investments and those of third parties for whom we perform property and asset management services, which would impact the amount of management fee revenues and income (loss) from investments in unconsolidated joint ventures that we earn.
Previous wording
Market Fundamentals: Our results are impacted by housing market fundamentals and supply and demand conditions in our markets, particularly in the Western United States and Florida, which represented 72.1% of our rental revenues and other property income during the three months ended March 31, 2024. We actively monitor the impact of macroeconomic conditions on market fundamentals and quickly implement changes in pricing as market fundamentals shift.
Current wording
Market Fundamentals: Our results are impacted by housing market fundamentals and supply and demand conditions in our markets, particularly in the Western United States and Florida, which represented 72.2% of our rental revenues and other property income during the three months ended June 30, 2024. We actively monitor the impact of macroeconomic conditions on market fundamentals and quickly implement changes in pricing as market fundamentals shift.
Previous wording
Turnover Rates and Days to Re-Resident: Other drivers of rental revenues and property operating and maintenance expense include the length of stay of our residents, resident turnover rates, and the number of days a home is unoccupied between residents. Our operating results are also impacted by the amount of time it takes to market and lease a property, which is a component of the number of days a home is unoccupied between residents. The period of time to market and lease a property can vary greatly and is impacted by local demand, our marketing techniques, the size of our available inventory, the ability of our suppliers and other business partners to carry out their assigned tasks and/or source labor or supply materials at ordinary levels of performance relative to the conduct of our business, and both current economic conditions and future economic outlook, including the impact of rising inflation, bank failures, and high interest rates which could adversely affect demand for our properties.
Current wording
Turnover Rates and Days to Re-Resident: Other drivers of rental revenues and property operating and maintenance expense include the length of stay of our residents, resident turnover rates, and the number of days a home is unoccupied between residents. Our operating results are also impacted by the amount of time it takes to market and lease a property, which is a component of the number of days a home is unoccupied between residents. The period of time to market and lease a property can vary greatly and is impacted by local demand, our marketing techniques, the size of our available inventory, the ability of our suppliers and other business partners to carry out their assigned tasks and/or source labor or supply materials at ordinary levels of performance relative to the conduct of our business, and both current economic conditions and future economic outlook, including the impact of sustained inflation, bank failures, and high interest rates which could adversely affect demand for our properties.
Previous wording
Property Improvements and Maintenance: Property improvements and maintenance impact capital expenditures, property operating and maintenance expense, and rental revenues. We actively manage our homes on a total portfolio basis to determine what capital and maintenance needs may be required and what opportunities we may have to generate additional revenues or expense savings from such expenditures. As a result of current inflationary trends, we have experienced, and expect to continue to incur, increased costs for certain materials and services necessary to improve and maintain our homes. We continue to actively manage the impact of inflation on these costs, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally.
Current wording
Property Improvements and Maintenance: Property improvements and maintenance impact capital expenditures, property operating and maintenance expense, and rental revenues. We actively manage our homes on a total portfolio basis to determine what capital and maintenance needs may be required and what opportunities we may have to generate additional revenues or expense savings from such expenditures. As a result of recent inflationary trends, we have experienced, and expect to continue to incur, increased costs for certain materials and services necessary to improve and maintain our homes. We continue to actively manage the impact of inflation on these costs, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally.
Previous wording
The acquisition of homes involves expenditures in addition to payment of the purchase price, including payments for acquisition fees, property inspections, closing costs, title insurance, transfer taxes, recording fees, broker commissions, property taxes, and HOA fees (when applicable). Additionally, we typically incur costs to renovate a home to prepare it for rental. The scope of renovation work varies, but may include paint, flooring, carpeting, cabinetry, appliances, plumbing hardware, roof replacement, HVAC replacement, and other items required to prepare the home for rental. The time and cost involved in accessing our homes and preparing them for rental can significantly impact our financial performance. The time to renovate a newly acquired property can vary significantly among homes for several reasons, including the property’s acquisition channel, the condition of the property, whether the property was vacant when acquired, and whether there are any state or local restrictions on our ability to complete renovations as an essential business function. Additionally, the ability of our suppliers and other business partners to carry out their assigned tasks and/or source labor or supply materials at ordinary levels of performance relative to the conduct of our business have increased the time required to renovate our homes. As a result of current inflationary trends, we have experienced, and expect to continue to incur, increased costs for certain materials and services necessary to renovate our homes. We continue to actively manage the impact of inflation on the cost of renovations, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally.
Current wording
The acquisition of homes involves expenditures in addition to payment of the purchase price, including payments for acquisition fees, property inspections, closing costs, title insurance, transfer taxes, recording fees, broker commissions, property taxes, and HOA fees (when applicable). Additionally, we typically incur costs to renovate a home to prepare it for rental. The scope of renovation work varies, but may include paint, flooring, carpeting, cabinetry, appliances, plumbing hardware, roof replacement, HVAC replacement, and other items required to prepare the home for rental. The time and cost involved in accessing our homes and preparing them for rental can significantly impact our financial performance. The time to renovate a newly acquired property can vary significantly among homes for several reasons, including the property’s acquisition channel, the condition of the property, whether the property was vacant when acquired, and whether there are any state or local restrictions on our ability to complete renovations as an essential business function. Additionally, the ability of our suppliers and other business partners to carry out their assigned tasks and/or source labor or supply materials at ordinary levels of performance relative to the conduct of our business have increased the time required to renovate our homes. As a result of recent inflationary trends, we have experienced, and expect to continue to incur, increased costs for certain materials and services necessary to renovate our homes. We continue to actively manage the impact of inflation on the cost of renovations, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally.
Previous wording
Property management expense represents personnel and other costs associated with the oversight and management of our portfolio of homes, including those for which we provide property and asset management services through our internal property manager.
Current wording
Property management expense represents personnel and other costs associated with the oversight and management of our portfolio of homes, including those for which we provide property and asset management services on behalf of others through our internal property manager.
Previous wording
Gains (losses) on investments in equity securities, net includes unrealized gains and losses resulting from mark to market adjustments and realized gains and losses recognized upon the sale of such securities.
Current wording
Gains (losses) on investments in equity and other securities, net includes unrealized gains and losses resulting from mark to market adjustments and realized gains and losses recognized upon the sale or settlement of certain investments in equity securities and warrants.
Previous wording
Income (loss) from investments in unconsolidated joint ventures consists of our share of net earnings and losses from investments in unconsolidated joint ventures accounted for using the equity method.
Current wording
Income (losses) from investments in unconsolidated joint ventures consists of our share of net earnings and losses from investments in unconsolidated joint ventures accounted for using the equity method.
Previous wording
As of March 31, 2024 and 2023, we owned 84,445 and 83,010 single-family rental homes, respectively, in our total portfolio. During the three months ended March 31, 2024 and 2023, we acquired 257 and 181 homes, respectively, and sold 379 and 284 homes, respectively. During the three months ended March 31, 2024 and 2023, we owned an average of 84,486 and 83,064 single-family rental homes, respectively. As of March 31, 2024 and 2023, we provided property and asset management services for 18,122 and 3,570 homes, respectively, of which 3,844 and 3,570 homes were owned by our unconsolidated joint ventures, respectively.
Current wording
As of June 30, 2024 and 2023, we owned 84,640 and 82,837 single-family rental homes, respectively, in our total portfolio. During the three months ended June 30, 2024 and 2023, we acquired 443 and 188 homes, respectively, and sold 248 and 361 homes, respectively. During the three months ended June 30, 2024 and 2023, we owned an average of 84,471 and 82,925 single-family rental homes, respectively. During the six months ended June 30, 2024 and 2023, we acquired 700 and 369 homes, respectively, and sold 627 and 645 homes, respectively. During the six months ended June 30, 2024 and 2023, we owned an average of 84,478 and 82,994 single-family rental homes, respectively.
Previous wording
As of March 31, 2024, our Same Store portfolio consisted of 78,487 single-family rental homes.
Current wording
As of June 30, 2024, our Same Store portfolio consisted of 77,994 single-family rental homes.
Previous wording
For the three months ended March 31, 2024 and 2023, total revenues were $646.0 million and $589.9 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
Current wording
For the three months ended June 30, 2024 and 2023, total revenues were $653.5 million and $600.4 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
Previous wording
For the three months ended March 31, 2024 and 2023, total portfolio rental revenues and other property income totaled $632.1 million and $586.5 million, respectively, an increase of 7.8%, driven by an increase in average monthly rent per occupied home and a 1,422 home increase between periods in the average number of homes owned, partially offset by a 50 bps reduction in average occupancy.
Current wording
For the three months ended June 30, 2024 and 2023, total portfolio rental revenues and other property income totaled $637.5 million and $596.9 million, respectively, an increase of 6.8%, driven by an increase in average monthly rent per occupied home and a 1,546 home increase between periods in the average number of homes owned, partially offset by a 40 bps reduction in average occupancy.
Previous wording
Average occupancy for the three months ended March 31, 2024 and 2023 for the total portfolio was 96.7% and 97.2%, respectively. Average monthly rent per occupied home for the total portfolio for the three months ended March 31, 2024 and 2023 was $2,358 and $2,259, respectively, a 4.4% increase. For our Same Store portfolio, average occupancy was 97.6% and 97.8% for the three months ended March 31, 2024 and 2023, respectively, and average monthly rent per occupied home for the three months ended March 31, 2024 and 2023 was $2,363 and $2,260, respectively, a 4.6% increase.
Current wording
Average occupancy for the three months ended June 30, 2024 and 2023 for the total portfolio was 96.6% and 97.0%, respectively. Average monthly rent per occupied home for the total portfolio for the three months ended June 30, 2024 and 2023 was $2,379 and $2,288, respectively, a 4.0% increase. For our Same Store portfolio, average occupancy was 97.5% and 97.6% for the three months ended June 30, 2024 and 2023, respectively, and average monthly rent per occupied home for the three months ended June 30, 2024 and 2023 was $2,386 and $2,290, respectively, a 4.2% increase.
Previous wording
The annualized turnover rate for the Same Store portfolio for the three months ended March 31, 2024 and 2023 was 20.8% and 21.0%, respectively. For the Same Store portfolio, a home remained unoccupied on average for 40 and 39 days between residents for the three months ended March 31, 2024 and 2023, respectively. The slight increase in days to re-resident resulted in an overall decrease in average Same Store occupancy on a year over year basis.
Current wording
The annualized turnover rate for the Same Store portfolio for the three months ended June 30, 2024 and 2023 was 25.1% and 27.1%, respectively. For the Same Store portfolio, an average home remained unoccupied for 35 and 33 days between residents for the three months ended June 30, 2024 and 2023, respectively. The slight increase in days to re-resident resulted in an overall decrease in average Same Store occupancy on a year over year basis.
Previous wording
Renewal lease net effective rental rate growth for the total portfolio averaged 5.7% and 7.8% for the three months ended March 31, 2024 and 2023, respectively, and new lease net effective rental rate growth for the total portfolio averaged 0.8% and 5.4% for the three months ended March 31, 2024 and 2023, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 5.8% and 7.8% for the three months ended March 31, 2024 and 2023, respectively, and new lease net effective rental rate growth averaged 0.8% and 5.3% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Renewal lease net effective rental rate growth for the total portfolio averaged 5.6% and 6.8% for the three months ended June 30, 2024 and 2023, respectively, and new lease net effective rental rate growth for the total portfolio averaged 3.5% and 6.8% for the three months ended June 30, 2024 and 2023, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 5.6% and 6.8% for the three months ended June 30, 2024 and 2023, respectively, and new lease net effective rental rate growth averaged 3.6% and 6.7% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Other property income for the three months ended March 31, 2024 increased compared to March 31, 2023, primarily due to enhanced value-add revenue programs and increased utility billbacks as new leases are entered into, among other things.
Current wording
Other property income for the three months ended June 30, 2024 increased compared to June 30, 2023, primarily due to increased utility billbacks as new leases are entered into and enhanced value-add revenue programs, among other things.
Previous wording
For the three months ended March 31, 2024 and 2023, management fee revenues totaled $13.9 million and $3.4 million, respectively. The increase is due to an increase in the number of homes for which we provide property and asset management services. As of March 31, 2024 and 2023, we provided property and asset management services for 18,122 and 3,570 homes, respectively, of which 3,844 and 3,570 homes were owned by our unconsolidated joint ventures, respectively.
Current wording
For the three months ended June 30, 2024 and 2023, management fee revenues totaled $16.0 million and $3.4 million, respectively. The increase is due to an increase in the number of homes for which we provide property and asset management services. As of June 30, 2024 and 2023, we provided property and asset management services for 21,146 and 3,641 homes, respectively, of which 3,885 and 3,641 homes, respectively, were owned by our unconsolidated joint ventures.
Previous wording
For the three months ended March 31, 2024 and 2023, total expenses were $554.4 million and $493.4 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
Current wording
For the three months ended June 30, 2024 and 2023, total expenses were $565.3 million and $503.4 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
Previous wording
Property management expense and general and administrative expense increased to $54.7 million from $41.0 million for the three months ended March 31, 2024 and 2023, respectively, primarily due to increased personnel costs related to expansion of our property and asset management platform, including costs incurred to manage 18,122 homes under management as of March 31, 2024.
Current wording
Property management expense and general and administrative expense increased to $54.1 million from $43.4 million for the three months ended June 30, 2024 and 2023, respectively, primarily due to increased personnel and other costs related to expansion of our property and asset management platform, including costs incurred to manage 21,146 and 3,641 homes as of June 30, 2024 and June 30, 2023, respectively.
Previous wording
Interest expense increased to $89.8 million for the three months ended March 31, 2024 from $78.0 million for the three months ended March 31, 2023. The increase in interest expense was primarily due to $778.1 million increase in gross debt outstanding and a 19 bps increase in our weighted average interest rate in each case, as of March 31, 2024 compared to March 31, 2023.
Current wording
Interest expense increased to $90.0 million for the three months ended June 30, 2024 from $78.6 million for the three months ended June 30, 2023. The increase in interest expense was primarilydue to a $779.1 million increase in gross debt outstanding and 16 bps increase in our weighted average interest rate in each case, as of June 30, 2024 compared to June 30, 2023.
Previous wording
Depreciation and amortization expense increased to $175.3 million for the three months ended March 31, 2024 from $164.7 million for the three months ended March 31, 2023 due to an increase in cumulative capital expenditures and a 1,422 home increase in the average number of homes owned during the three months ended March 31, 2024 compared to thethree months ended March 31, 2023.
Current wording
Depreciation and amortization expense increased to $176.6 million for the three months ended June 30, 2024 from $165.8 million for thethree months ended June 30, 2023 due to an increase in cumulative capital expenditures and a 1,546 home increase in the average number of homes owned during thethree months ended June 30, 2024 compared to thethree months ended June 30, 2023.
Previous wording
Impairment and other expenses were $4.1 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024, impairment and other expenses were comprised of $4.1 million of net casualty losses. During the three months ended March 31, 2023, impairment and other expenses were comprised of net casualty losses of $1.0 million and impairment losses of $0.2 million on our single-family residential properties.
Current wording
Impairment and other expenses were $10.4 million and $1.9 million for the three months ended June 30, 2024 and 2023, respectively. During the three months ended June 30, 2024, impairment and other expenses were comprised of $10.4 million of net casualty losses for repairs from recent storm activity in excess of amounts recoverable from insurance coverage. During the three months ended June 30, 2023, impairment and other expenses were comprised of net casualty losses of $1.8 million and impairment losses of $0.1 million on our single-family residential properties.
Previous wording
Other, net increased to $6.0 million of income for the three months ended March 31, 2024 from $1.5 million of expense for the three months ended March 31, 2023, primarily due to an increase in interest income on cash balances.
Current wording
Other, net increased to $54.0 million of expense for the three months ended June 30, 2024 from $3.9 million of expense for the three months ended June 30, 2023, primarily due to accruals for certain litigation and regulatory costs, partially offset by an increase in interest income on cash balances. The three months ended June 30, 2024 includes a $22.0 million accrual for a settlement that resolved the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs, as well as a $37.5 million accrual for an estimated probable loss with respect to an ongoing inquiry from the Federal Trade Commission (the “FTC”).
Previous wording
Gain on sale of property, net of tax was $50.5 million and $29.7 million for the three months ended March 31, 2024 and 2023, respectively. An increase in the number of homes sold from 284 for the three months ended March 31, 2023 to 379 for the three months ended March 31, 2024 was the primary driver of the increase.
Current wording
Gain on sale of property, net of tax was $43.3 million and $46.8 million for the three months ended June 30, 2024 and 2023, respectively. A decrease in the number of homes sold from 361 for the three months ended June 30, 2023 to 248 for the three months ended June 30, 2024 was the primary driver of the decrease.
Previous wording
For the three months ended March 31, 2024, property operating and maintenance expense increased to $230.4 million from $208.5 million for the three months ended March 31, 2023. In addition to a 1,422 home increase between periods in the average number of homes owned, increases in property taxes, utilities, HOA, insurance, and property administrative costs, resulted in the overall 10.5% net increase in property operating and maintenance expense.
Current wording
For the six months ended June 30, 2024, property operating and maintenance expense increased to $464.6 million from $422.3 million for the six months ended June 30, 2023. In addition to a 1,484 home increase between periods in the average number of homes owned, increases in property taxes, utilities, property maintenance, insurance, and property administrative costs, resulted in the overall 10.0% net increase in property operating and maintenance expense.
Previous wording
Our share of equity in earnings and/or losses from unconsolidated joint ventures was a net loss of $5.1 million and $4.2 million for the three months ended March 31, 2024 and 2023, respectively. The increase in loss is primarily driven by a $0.4 million increase in depreciation expense related to cumulative capital expenditures and the acquisition of 274 homes within our joint ventures since March 31, 2023 and an increase of $0.7 million in interest expense between the respective periods.
Current wording
Our share of equity in earnings and/or losses from unconsolidated joint ventures was a net loss of $10.6 million and $6.2 million for the six months ended June 30, 2024 and 2023, respectively. The increase in loss is primarily driven by $3.2 million of decreases in the fair value of interest rate caps for certain of our joint ventures and an increase in depreciation expense of $1.3 million between the respective periods. These changes are a result of the formation of and commencement of operations in new joint ventures, cumulative capital expenditures, and an increase in the number of homes within our joint venture investments.
Previous wording
Our liquidity and capital resources as of March 31, 2024 and December 31, 2023 include unrestricted cash and cash equivalents of $738.1 million and $700.6 million, respectively, a 5.4%increase primarily due to an excess of cash flows from operations over investing and financing expenditures during the three months ended March 31, 2024.
Current wording
Our liquidity and capital resources as of June 30, 2024 and December 31, 2023 include unrestricted cash and cash equivalents of $749.4 million and $700.6 million, respectively, a 7.0%increase primarily due to an excess of cash flows from operations over investing and financing expenditures during the six months ended June 30, 2024.
Previous wording
On April 29, 2024, we entered into a new joint venture agreement whereby wemade a$37.5 million investment, representing a 7.2% ownership interest, in a portfolio of approximately 3,700 single-family residential properties. Beginning in the third quarter of 2024, we will also provide property and asset management services to those homes and an additional 700 homes owned by our joint venture partners.
Current wording
On April 29, 2024, we entered into a new joint venture agreement pursuant to which wemade an initial$37.5 million investment, representing a 7.2% ownership interest, in a portfolio of approximately 3,700 single-family residential properties. Beginning in the third quarter of 2024, we will also provide property and asset management services to those homes and an additional 700 homes owned by our joint venture partners.
Previous wording
In March 2024, we entered into a third-party agreement to provide property and asset management services to a portfolio of approximately 3,000 single-family homes for lease. Our direct management responsibilities for these homes is expected to commence on May 15, 2024.
Current wording
In March 2024, we entered into a third-party agreement to provide property and asset management services to a portfolio of approximately 3,000 single-family homes for lease. Our direct management responsibilities for these homes commenced on May 15, 2024.
Previous wording
(5)Effective July 3, 2023, the interest rate for IH 2018-4 is based on the weighted average spread over Term SOFR adjusted for an 0.11% credit spread adjustment. As of March 31, 2024, Term SOFR was 5.33%.
Current wording
(5)Effective July 3, 2023, the interest rate for IH 2018-4 is based on the weighted average spread over Term SOFR adjusted for an 0.11% credit spread adjustment. As of June 30, 2024, Term SOFR was 5.34%.
Previous wording
(7)For secured debt, unsecured debt, and total debt, the weighted average interest rate is calculated based on March 31, 2024, Term SOFR of 5.33% adjusted for either a 0.11% or a 0.10% credit spread adjustment (Adjusted SOFR), as appropriate, and includes the impact of interest rate swap agreements effective as of that date.
Current wording
(7)For secured debt, unsecured debt, and total debt, the weighted average interest rate is calculated based on June 30, 2024, Term SOFR of 5.34% adjusted for either a 0.11% or a 0.10% credit spread adjustment (Adjusted SOFR), as appropriate, and includes the impact of interest rate swap agreements effective as of that date.
Previous wording
(8)Interest rate is based on Term SOFR of 5.33% plus the applicable margin and a 0.10% credit spread adjustment.
Current wording
(8)As of June 30, 2024, interest rate is based on Term SOFR of 5.34% plus the applicable margin and a 0.10% credit spread adjustment.
Previous wording
•acquisition of homes currently under contract;
Current wording
•acquisition of homes currently under contract, including commitments to homebuilders;
Previous wording
The following table summarizes our cash flows for the three months ended March 31, 2024 and 2023:
Current wording
The following table summarizes our cash flows for the six months ended June 30, 2024 and 2023:
Previous wording
Our cash flows provided by operating activities depend on numerous factors, including the occupancy level of our homes, the rental rates achieved on our leases, the collection of rent from our residents, and the amount of our operating and other expenses. Net cash provided by operating activities was $265.6 million and $317.8 million for the three months ended March 31, 2024 and 2023, respectively, a decrease of 16.4%. The decrease in cash provided by operating activities is primarily due to a net$67.3 million of cash used by operations between periods from changes in operating assets and liabilities.
Current wording
Our cash flows provided by operating activities depend on numerous factors, including the occupancy level of our homes, the rental rates achieved on our leases, the collection of rent from our residents, and the amount of our operating and other expenses. Net cash provided by operating activities was $635.4 million and $598.7 million for the six months ended June 30, 2024 and 2023, respectively, an increase of 6.1%. The increase in cash provided by operating activities is primarily due to improved operational profitability, including a$67.0 million increase in total revenues net of property operating and maintenance expense from period to period.
Previous wording
Net cash used in investing activities consists primarily of the acquisition costs of homes, capital improvements, and proceeds from property sales. Net cash used in investing activities was $24.9 million and $69.8 million for the three months ended March 31, 2024 and 2023, respectively, a decrease of $44.9 million. The decrease in net cash used in investing activities resulted primarily from the combined effect of the following significant changes in cash flows during the three months ended March 31, 2024 compared to the three months ended March 31, 2023:(1) anincrease in cash used for the acquisition of homes; (2) an increase in cash proceeds received from the sale of single-family homes; and (3) adecrease in cash used for investments in equity securities. Acquisition spend increased by $50.1 million from period to period due to an increase in the number of homes acquired from 181 during the three months ended March 31, 2023 to 257 homes acquired during the three months ended March 31, 2024. Proceeds from the sale of single-family homes increased $44.1 million due to an increase in the number of homes sold from 284 during the three months ended March 31, 2023 to 379 homes sold during the three months ended March 31, 2024. Cash invested in equity securities decreased $30.7 million due to fewer such investments during the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
Current wording
Net cash used in investing activities consists primarily of the acquisition costs of homes, capital improvements, proceeds from property sales, and investments in unconsolidated joint ventures. Net cash used in investing activities was $200.2 million and $92.0 million for the six months ended June 30, 2024 and 2023, respectively, an increase of $108.2 million. The increase in net cash used in investing activities resulted primarily from the combined effect of the following significant changes in cash flows during the six months ended June 30, 2024 compared to the six months ended June 30, 2023:(1) anincrease in cash used for the acquisition of homes; (2)an increase in cash used for investments in joint ventures; (3) adecrease in cash used for investments in equity securities; and (4) a decrease in cash used for deposits held by others. Acquisition spend increased by $125.3 million from period to period due to an increase in the number of homes acquired from 369 during the six months ended June 30, 2023 to 700 homes acquired during the six months ended June 30, 2024. Cash invested in joint ventures increased $38.7 million from period to period as a result of the formation of a new joint venture during 2024. Cash invested in equity securities decreased $31.8 million due to fewer such investments during the six months ended June 30, 2024 compared to the six months ended June 30, 2023. Cash used for deposits held by others decreased $29.4 million from period to period due to a deposit made related to the acquisition of a portfolio of homes in 2023.
Previous wording
Net cash used in financing activities was $190.8 million for the three months ended March 31, 2024 compared to net cash used in financing activities of $173.6 million for the three months ended March 31, 2023. During the three months ended March 31, 2024 and 2023, we made dividend and distribution payments totaling$173.8 million and $160.8 million, respectively, which were funded by cash flows from operations.
Current wording
Net cash used in financing activities was $369.5 million for the six months ended June 30, 2024 compared to net cash used in financing activities of $341.2 million for the six months ended June 30, 2023. During the six months ended June 30, 2024 and 2023, we made dividend and distribution payments totaling$346.5 million and $320.9 million, respectively, which were funded by cash flows from operations.
Showing the first 40 of 58 pairs. Open the source sections for the rest.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
For the three months ended June 30, 2024, property operating and maintenance expense increased to $234.2 million from $213.8 million for the three months ended June 30, 2023. In addition to a 1,546 home increase between periods in the average numbers of homes owned, increases in property taxes, property maintenance, and utilities resulted in the overall 9.5% net increase in property operating and maintenance expense.
Current report — wording carried from elsewhere
The following table sets forth a comparison of the results of operations for the six months ended June 30, 2024 and 2023:
Current report — wording carried from elsewhere
For the six months ended June 30, 2024 and 2023, total portfolio rental revenues and other property income totaled $1,269.6 million and $1,183.4 million, respectively, an increase of 7.3%, driven by an increase in average monthly rent per occupied home and a 1,484 home increase between periods in the average number of homes owned, partially offset by a 50 bps reduction in average occupancy.
Current report — wording carried from elsewhere
The annualized turnover rate for the Same Store portfolio for the six months ended June 30, 2024 and 2023 was 22.8% and 24.0%, respectively. For the Same Store portfolio, a home remained unoccupied on average for 37 and 36 days between residents for the six months ended June 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
To monitor prospective changes in average monthly rent per occupied home, we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home, in each case, net of any amortized non-service concessions, to calculate net effective rental rate growth. Leases are either renewal leases, where our current resident stays for a subsequent lease term, or new leases, where our previous resident moves out and a new resident signs a lease to occupy the same home.
Current report — wording carried from elsewhere
Renewal lease net effective rental rate growth for the total portfolio averaged 5.6% and 7.3% for the six months ended June 30, 2024 and 2023, respectively, and new lease net effective rental rate growth for the total portfolio averaged 2.2% and 6.1% for the six months ended June 30, 2024 and 2023, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 5.7% and 7.3% for the six months ended June 30, 2024 and 2023, respectively, and new lease net effective rental rate growth averaged 2.3% and 6.0% for the six months ended June 30, 2024 and 2023, respectively.
Current report — wording carried from elsewhere
Other property income for the six months ended June 30, 2024 increased compared to June 30, 2023, primarily due to enhanced value-add revenue programs and increased utility billbacks as new leases are entered into, among other things.
Current report — wording carried from elsewhere
Property management expense and general and administrative expense increased to$108.8 million from$84.4 million for the six months ended June 30, 2024 and 2023, respectively, primarily due to increased personnel and other costs related to expansion of our property and asset management platform, including costs incurred to manage 21,146 and 3,641 homes as of June 30, 2024 and June 30, 2023, respectively.
Current report — wording carried from elsewhere
Interest expense increased to $179.9 million for the six months ended June 30, 2024 from $156.7 million for the six months ended June 30, 2023. The increase in interest expense was primarily due to $779.1 million increase in gross debt outstanding and a 16 bps increase in our weighted average interest rate in each case, as of June 30, 2024 compared to June 30, 2023.
Current report — wording carried from elsewhere
Losses from Investments in Unconsolidated Joint Ventures
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
Gains (Losses) on Investments in Equity Securities, net
Previous report — wording carried elsewhere
Gain on Sale of Property, net of tax
Previous report — wording carried elsewhere
Income (Loss) from Investments in Unconsolidated Joint Ventures
Previous report — wording carried elsewhere
Gains (losses) on Investments in Equity Securities, net
Previous report — wording carried elsewhere
Gain on Sale of Property, net of tax
Previous report — wording carried elsewhere
Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023
Previous report — wording carried elsewhere
The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our Core FFO and Adjusted FFO may not be comparable to the Core FFO and Adjusted FFO of other companies due to the fact that not all companies use the same definition of Core FFO and Adjusted FFO. No adjustments were made to the Core FFO and Adjusted FFO per common share — diluted computations for potential shares of common stock related to the Convertible Senior Notes during the periods the notes were outstanding. Accordingly, there can be no assurance that our basis for computing this non-GAAP measures is comparable with that of other companies.