Invitation Homes Inc
For the period ended Sep 30, 2024. Filed Oct 31, 2024.
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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.
Sep 30, 2024 · Filed Oct 31, 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 2024-06-30; filed 2024-07-25.
0001687229-24-000046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-31.
0001687229-24-000074
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 207 previous paragraphs and 213 current paragraphs.
126 unchanged; 73 reworded; 13 added; 6 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 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 (13)
Current report
Casualty Losses, Impairment, and Other
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
New Credit Facility
Current report
On September 9, 2024, we entered into an amended and restated senior unsecured credit facility (the “Credit Facility”). The Credit Facility provides $3,500.0 million of borrowing capacity and consists of a $1,750.0 million revolving facility (the “Revolving Facility”) and a $1,750.0 million term loan facility (the “2024 Term Loan Facility”), both of which mature on September 9, 2028, with two six month extension options available. The Credit Facility replaced a credit facility that consisted of a $1,000.0 million revolving credit facility (the “2020 Revolving Facility”) and a $2,500.0 million term loan facility (the “2020 Term Loan Facility,” and together with the 2020 Revolving Facility, the “2020 Credit Facility”). Proceeds from the 2024 Term Loan Facility, a $750.0 million borrowing on the Revolving Facility on the date of effectiveness of the Credit Facility, and excess cash on hand were used to fully repay the 2020 Term Loan Facility and to pay costs associated with the transaction. For both the Revolving Facility and the 2024 Term Loan Facility, spreads at closing, based on our total leverage ratio, were 5 bps lower than the spreads most recently in effect for the 2020 Credit Facility.
Current report
Public Offering
Current report
On September 26, 2024, in a public offering under our existing shelf registration statement, we issued $500.0 million aggregate principal amount of 4.88% Senior Notes which mature on February 1, 2035.
Current report
Interest Rate Swap Transactions
Current report
In September 2024, we amended certain interest rate swap agreements and entered into $1,400.0 million of new interest rate swap agreements. As of September 30, 2024, our currently active swaps have a weighted average strike rate of 2.86% and are scheduled to terminate between November 30, 2024 and July 31, 2025, while our forward starting swaps, which will become active between December 31, 2024 and July 9, 2025 and mature between May 31, 2028 and May 31, 2029, have a weighted strike rate of 2.95%.
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
(3)The three and nine months ended September 30, 2024 include $14,000 of estimated losses and damages related to Hurricanes Beryl, Debby, and Helene.
Current report
(4)Includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses.
Current report
(3)The three and nine months ended September 30, 2024, include $17,500 and $77,000, respectively, of settlement costs that resolved an inquiry from the FTC and the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., inclusive of associated costs.
Current report
(4)The three and nine months ended September 30, 2024 include $14,000 of estimated losses and damages related to Hurricanes Beryl, Debby, and Helene.
Removed paragraphs (6)
Previous report
Impairment and Other
Previous report
Gains on Investments in Equity and Other Securities, net
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous report
Gains on Investments in Equity and Other Securities, net
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous 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.
Reworded paragraphs (73)
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 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 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 September 30, 2024, we provided property and asset management services for 25,535 homes, of which 7,619 homes were owned by our unconsolidated joint ventures.
Previous wording
Continuing unfavorable global and United States economic conditions (including inflation and high interest rates), high unemployment levels, uncertainty in financial markets (including as a result of events affecting financial institutions, such as recent bank failures), ongoing geopolitical tension, and a general decline in business activity and/or consumer confidence could adversely affect (i) our ability to acquire, dispose of, or effectively manage single-family homes, (ii) our access to financial markets on attractive terms, or at all, and (iii) the value of our homes and our business that could cause us to recognize impairments in value of our tangible assets or goodwill. High levels of inflation, bank failures, and high interest rates may also negatively impact consumer income, credit availability, and spending, among other factors, which may adversely impact our business, financial condition, cash flows, and results of operations, including the ability of our residents to pay rent. These factors, which include labor shortages and inflationary increases in labor and material costs, have impacted and may continue to impact certain aspects of our business. In addition, consumer confidence and spending can be materially adversely affected in response to changes in fiscal and monetary policy, declines in income or asset values, and other economic factors. For example, we have experienced and continue to expect higher levels of bad debt expense compared to pre-COVID averages, as it continues to take longer to address residents who are not current with their rent.
Current wording
Continuing unfavorable global and United States economic conditions (including inflation), high unemployment levels, uncertainty in financial markets (including as a result of events affecting financial institutions, such as bank failures), ongoing geopolitical tension, and a general decline in business activity and/or consumer confidence could adversely affect (i) our ability to acquire, dispose of, or effectively manage single-family homes, (ii) our access to financial markets on attractive terms, or at all, and (iii) the value of our homes and our business that could cause us to recognize impairments in value of our tangible assets or goodwill. Inflationary pressures, bank failures, and other unfavorable global and regional economic conditions, as well as geopolitical events, may also negatively impact consumer income, credit availability, interest rates, and spending, among other factors, which may adversely impact our business, financial condition, cash flows, and results of operations, including the ability of our residents to pay rent. These factors, which include labor shortages and inflationary increases in labor and material costs, have impacted and may continue to impact certain aspects of our business. In addition, consumer confidence and spending can be materially adversely affected in response to changes in fiscal and monetary policy, declines in income or asset values, and other economic factors. For example, we have experienced and continue to expect higher levels of bad debt expense compared to pre-COVID averages, as it continues to take longer to address residents who are not current with their rent.
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. 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.
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. Subsequent to issuance, the rules became the subject of litigation, and the SEC has issued a stay to allow the legal process to proceed. The SEC has indicated that it will publish a new effective date for the rules, if ultimately implemented, at the conclusion of the stay. These rules will be applied prospectively. 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
These laws and regulations may require us to make costly improvements to our existing properties beyond our current plans to decrease the impact of our homes on the environment, resulting in increased operating costs. Incorporating greater resource efficiency into our homes, whether to comply with upgraded building codes or recommended practices given a region’s particular exposure to climate conditions, or undertaken to satisfy demand from increasingly environmentally conscious residents or to meet our own sustainability goals, could raise our costs to maintain our homes. In evaluating whether to implement voluntary improvements, we also consider that choosing not to enhance our homes’ resource efficiency can make them less attractive to municipalities and increase the vulnerability of residents in our communities to rising energy and water expenses and use restrictions. Additionally, choosing not to enhance our homes’ resource efficiency could make our portfolio less attractive to residents and investors. If we fail to manage transition risks effectively, our profitability and cash flow could suffer.
Current wording
These and future laws and regulations or any changed interpretation of existing laws and regulations may require us to make costly improvements to our existing properties beyond our current plans to decrease the impact of our homes on the environment, resulting in increased operating costs. Incorporating greater resource efficiency into our homes, whether to comply with upgraded building codes or recommended practices given a region’s particular exposure to climate conditions, or undertaken to satisfy demand from increasingly environmentally conscious residents or to meet our own sustainability goals, could raise our costs to maintain our homes. In evaluating whether to implement voluntary improvements, we also consider that choosing not to enhance our homes’ resource efficiency can make them less attractive to municipalities and increase the vulnerability of residents in our communities to rising energy and water expenses and use restrictions. Additionally, choosing not to enhance our homes’ resource efficiency could make our portfolio less attractive to residents and investors. If we fail to manage transition risks effectively, our profitability and cash flow could suffer.
Previous 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.
Current wording
(5)Represents homes located outside of our 16 core markets as of September 30, 2024, including 106 homes located in Nashville and 13 homes located in other markets that are generally being held for sale.
Previous wording
Other property income is comprised of: (i) resident reimbursements for utilities, HOA fines, and other charge-backs; (ii) rent and non-refundable deposits associated with pets; (iii) revenues from value-add services such as smart homes and HVAC replacement filters; and (iv) various other fees, including late fees and lease termination fees, among others.
Current wording
Other property income is comprised of: (i) resident reimbursements for utilities, HOA fines, and other charge-backs; (ii) rent and non-refundable deposits associated with pets; (iii) revenues from value-add services such as smart homes,internet and media packages, home liability insurance, and HVAC replacement filters; and (iv) various other fees, including late fees and lease termination fees, among others.
Previous wording
Impairment and other represents provisions for impairment when the carrying amount of our single-family residential properties is not recoverable and casualty (gains) losses, net of any insurance recoveries.
Current wording
Casualty losses, impairment, and other represents provisions for impairment when the carrying amount of our single-family residential properties is not recoverable and casualty (gains) losses, net of any insurance recoveries.
Previous 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.
Current wording
As of September 30, 2024 and 2023, we owned 85,221 and 84,697 single-family rental homes, respectively, in our total portfolio. During the three months ended September 30, 2024 and 2023, we acquired 891 and 2,257 homes, respectively, and sold 310 and 397 homes, respectively. During the three months ended September 30, 2024 and 2023, we owned an average of 84,753 and 84,252 single-family rental homes, respectively. During the nine months ended September 30, 2024 and 2023, we acquired 1,591 and 2,626 homes, respectively, and sold 937 and 1,042 homes, respectively. During the nine months ended September 30, 2024 and 2023, we owned an average of 84,567 and 83,416 single-family rental homes, respectively.
Previous wording
As of June 30, 2024, our Same Store portfolio consisted of 77,994 single-family rental homes.
Current wording
As of September 30, 2024, our Same Store portfolio consisted of 77,186 single-family rental homes.
Previous 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.
Current wording
For the three months ended September 30, 2024 and 2023, total revenues were $660.3 million and $617.7 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
Previous 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.
Current wording
For the three months ended September 30, 2024 and 2023, total portfolio rental revenues and other property income totaled $641.3 million and $614.3 million, respectively, an increase of 4.4%, driven by an increase in average monthly rent per occupied home and a 501 home increase between periods in the average number of homes owned, partially offset by a 50 bps reduction in average occupancy.
Previous 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.
Current wording
Average occupancy for the three months ended September 30, 2024 and 2023 for the total portfolio was 95.5% and 96.0%, respectively. Average monthly rent per occupied home for the total portfolio for the three months ended September 30, 2024 and 2023 was $2,397 and $2,323, respectively, a 3.2% increase. For our Same Store portfolio, average occupancy was 97.0% and 97.1% for the three months ended September 30, 2024 and 2023, respectively, and average monthly rent per occupied home for the three months ended September 30, 2024 and 2023 was $2,406 and $2,321, respectively, a 3.7% increase.
Previous 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.
Current wording
The annualized turnover rate for the Same Store portfolio for the three months ended September 30, 2024 and 2023 was 24.9% and 27.2%, respectively. For the Same Store portfolio, an average home remained unoccupied for 38 and 36 days between residents for the three months ended September 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 5.6% 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.
Current wording
Renewal lease net effective rental rate growth for the total portfolio averaged 4.2% and 6.4% for the three months ended September 30, 2024 and 2023, respectively, and new lease net effective rental rate growth for the total portfolio averaged 1.7% and 4.7% for the three months ended September 30, 2024 and 2023, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 4.2% and 6.5% for the three months ended September 30, 2024 and 2023, respectively, and new lease net effective rental rate growth averaged 1.7% and 4.6% for the three months ended September 30, 2024 and 2023, respectively.
Previous 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.
Current wording
For the three months ended September 30, 2024 and 2023, management fee revenues totaled $19.0 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 September 30, 2024 and 2023, we provided property and asset management services for 25,535 and 3,656 homes, respectively, of which 7,619 and 3,656 homes, respectively, were owned by our unconsolidated joint ventures.
Previous 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.
Current wording
For the three months ended September 30, 2024 and 2023, total expenses were $590.7 million and $535.5 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
Previous wording
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 wording
For the three months ended September 30, 2024, property operating and maintenance expense increased to $242.2 million from $229.5 million for the three months ended September 30, 2023. In addition to a 501 home increase between periods in the average numbers of homes owned, increases in property taxes, property maintenance, and utilities resulted in the overall 5.6% net increase in property operating and maintenance expense.
Previous 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.
Current wording
Property management expense and general and administrative expense increased to $56.1 million from $46.1 million for the three months ended September 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 25,535 and 3,656 homes as of September 30, 2024 and September 30, 2023, respectively.
Previous 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.
Current wording
Interest expense increased to $91.1 million for the three months ended September 30, 2024 from $86.7 million for the three months ended September 30, 2023. The increase in interest expense was primarilydue to a $479.8 million increase in gross debt outstanding, as of September 30, 2024 compared to September 30, 2023.
Previous 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.
Current wording
Depreciation and amortization expense increased to $180.5 million for the three months ended September 30, 2024 from $170.7 million for thethree months ended September 30, 2023 due to an increase in cumulative capital expenditures and a 501 home increase in the average number of homes owned during the three months ended September 30, 2024 compared to thethree months ended September 30, 2023.
Previous wording
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 wording
Casualty losses, impairment, and other expenses were $20.9 million and $2.5 million for the three months ended September 30, 2024 and 2023, respectively. During the three months ended September 30, 2024, casualty losses, impairment, and other expenses were comprised of $20.6 million of net casualty losses for repairs from recent storm activity in excess of amounts recoverable from insurance coverage and impairment losses of $0.3 million on our single-family residential properties. During the three months ended September 30, 2023, casualty losses, impairment, and other expenses were comprised of net casualty losses of $2.4 million and impairment losses of $0.1 million on our single-family residential properties.
Previous wording
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 wording
For the three months ended September 30, 2024 and 2023, gains (losses) on investments in equity and other securities, net was comprisedofnet unrealized losses recognized oninvestments held at period end.
Previous 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”).
Current wording
Other, net increased to $9.3 million of expense for the three months ended September 30, 2024 from $2.5 million of expense for the three months ended September 30, 2023, primarily due to settlement and other costs incurred in connection with the resolution of an inquiry from the Federal Trade Commission (the “FTC”) and the legal dispute entitled City of San Diego et al v. Invitation Homes, Inc., partially offset by an increase in interest income on cash balances.
Previous 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.
Current wording
Gain on sale of property, net of tax was $47.8 million and $58.0 million for the three months ended September 30, 2024 and 2023, respectively. A decrease in the number of homes sold from 397 for the three months ended September 30, 2023 to 310 for the three months ended September 30, 2024 was the primary driver of the decrease.
Previous wording
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 wording
Our share of equity in earnings and/or losses from unconsolidated joint ventures was a net loss of $12.2 million and $4.9 million for the three months ended September 30, 2024 and 2023, respectively. The increase in loss is primarily driven by a $2.1 million increase in our share of interest expense, $3.0 million of decreases in our share of the fair value adjustments of interest rate caps for certain of our joint ventures, and an increase in our share of depreciation expense and gain (loss) on sale of property of $2.0 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
The following table sets forth a comparison of the results of operations for the six months ended June 30, 2024 and 2023:
Current wording
The following table sets forth a comparison of the results of operations for the nine months ended September 30, 2024 and 2023:
Previous wording
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 wording
For the nine months ended September 30, 2024 and 2023, total revenues were $1,959.8 million and $1,808.0 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
Previous wording
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 wording
For the nine months ended September 30, 2024 and 2023, total portfolio rental revenues and other property income totaled $1,910.9 million and $1,797.7 million, respectively, an increase of 6.3%, driven by an increase in average monthly rent per occupied home and a 1,151 home increase between periods in the average number of homes owned, partially offset by a 50 bps reduction in average occupancy.
Previous wording
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 wording
Average occupancy for the nine months ended September 30, 2024 and 2023 for the total portfolio was 96.2% and 96.7%, respectively. Average monthly rent per occupied home for the total portfolio for the nine months ended September 30, 2024 and 2023 was $2,379 and $2,290, respectively, a 3.9% increase. For our Same Store portfolio, average occupancy was 97.5% for each of the nine months ended September 30, 2024 and 2023, respectively, and average monthly rent per occupied home for the nine months ended September 30, 2024 and 2023 was $2,384 and $2,289, respectively, a 4.2% increase.
Previous wording
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 wording
The annualized turnover rate for the Same Store portfolio for the nine months ended September 30, 2024 and 2023 was 23.4% and 25.1%, respectively. For the Same Store portfolio, a home remained unoccupied on average for 37 and 36 days between residents for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
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 wording
Renewal lease net effective rental rate growth for the total portfolio averaged 5.1% and 6.9% for the nine months ended September 30, 2024 and 2023, respectively, and new lease net effective rental rate growth for the total portfolio averaged 2.0% and 5.6% for the nine months ended September 30, 2024 and 2023, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 5.2% and 7.0% for the nine months ended September 30, 2024 and 2023, respectively, and new lease net effective rental rate growth averaged 2.1% and 5.5% for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
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 wording
Other property income for the nine months ended September 30, 2024 increased compared to September 30, 2023, primarily due to enhanced value-add revenue programs and increased utility billbacks as new leases are entered into, among other things.
Previous wording
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 wording
For the nine months ended September 30, 2024 and 2023, management fee revenues totaled $48.9 million and $10.2 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 September 30, 2024 and 2023, we provided property and asset management services for 25,535 and 3,656 homes, respectively, of which 7,619 and 3,656 homes, respectively, were owned by our unconsolidated joint ventures.
Previous wording
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 wording
For the nine months ended September 30, 2024 and 2023, total expenses were $1,710.4 million and $1,532.4 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
Previous 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.
Current wording
For the nine months ended September 30, 2024, property operating and maintenance expense increased to $706.8 million from $651.8 million for the nine months ended September 30, 2023. In addition to a 1,151 home increase between periods in the average number of homes owned, increases in property taxes, utilities, and property maintenance, resulted in the overall 8.4% net increase in property operating and maintenance expense.
Previous wording
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 wording
Property management expense and general and administrative expense increased to$164.9 million from$130.5 million for the nine months ended September 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 25,535 and 3,656 homes as of September 30, 2024 and September 30, 2023, respectively.
Previous wording
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 wording
Interest expense increased to $270.9 million for the nine months ended September 30, 2024 from $243.4 million for the nine months ended September 30, 2023. The increase in interest expense was primarily due to $479.8 million increase in gross debt outstanding, as of September 30, 2024 compared to September 30, 2023.
Previous wording
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 wording
Depreciation and amortization expense increased to $532.4 million for the nine months ended September 30, 2024 from $501.1 million for the nine months ended September 30, 2023 due to an increase in cumulative capital expenditures and a 1,151 home increase in the average number of homes owned during the nine months ended September 30, 2024 compared to thenine months ended September 30, 2023.
Previous 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.
Current wording
Casualty losses, impairment, and other expenses were $35.4 million and $5.5 million for the nine months ended September 30, 2024 and 2023, respectively. During the nine months ended September 30, 2024, casualty losses, impairment, and other expenses were comprised of $35.1 million of net casualty losses for repairs from recent storm activity in excess of amounts recoverable from insurance coverage and impairment losses of $0.3 million on our single-family residential properties. During the nine months ended September 30, 2023, casualty losses, impairment, and other expenses were comprised of net casualty losses of $5.2 million and impairment losses of $0.3 million on our single-family residential properties.
Previous wording
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 wording
For the nine months ended September 30, 2024, gains (losses) on investments in equity and other securities, net of $1.0 million was comprised of a$1.6 million net realized gains from exercised warrants and offset by$0.6 million net unrealized losses recognized since December 31, 2023 on investments held as of September 30, 2024. For the nine months ended September 30, 2023, gains (losses) on investments in equity and other securities, net of $0.1 million was comprised of net unrealized gains recognized on investments held as of September 30, 2023.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
937 homes sold during thenine months ended September 30, 2024. Cash invested in joint ventures increased $39.1 million from period to period as a result of the formation of a new joint venture during 2024. Cash invested in equity securities decreased $29.2 million due to fewer such investments during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Gains (Losses) on Investments in Equity and Other Securities, net
Previous report — wording carried elsewhere
(3)Includes settlement and other costs related to certain litigation and regulatory matters, interest income, and other miscellaneous income and expenses.