Invitation Homes Inc 8-K, filed Oct 28, 2020
Invitation Homes Inc. (INVH)
8-K
2020-10-28
For: 2020-10-28
View Original
Added on
April 04, 2026
About this 8-K
Invitation Homes Inc filed this 8-K on October 28, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
| Form | |||||||||||
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2020
(Exact Name of Registrant as Specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||||||||||||||
(Address of principal executive offices, including zip code)
(972 ) 421-3600
(Registrant’s telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2):
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On October 28, 2020, Invitation Homes Inc. (the "Company") issued a press release announcing the results of the Company’s operations for the quarter ended September 30, 2020. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99.1 hereto, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits.
| Exhibit No. | Description | ||||
| Press Release of Invitation Homes Inc. dated October 28, 2020, announcing results for the quarter ended September 30, 2020. | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INVITATION HOMES INC. | |||||||||||
| By: | /s/ Mark A. Solls | ||||||||||
| Name: | Mark A. Solls | ||||||||||
| Title: | Executive Vice President, Secretary and Chief Legal Officer | ||||||||||
| Date: | October 28, 2020 | ||||||||||
Table of Contents
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 1
Earnings Press Release
Invitation Homes Reports Third Quarter 2020 Results
Dallas, TX, October 28, 2020 — Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), the nation's premier single-family home leasing company, today announced its third quarter 2020 financial and operating results.
Third Quarter 2020 Highlights
•Year over year, total revenues increased 3.6% to $459 million, and total property operating and maintenance expenses increased 1.4% to $178 million. Net income available to common stockholders decreased 3.2% to $33 million, and net income per diluted common share decreased 7.2% to $0.06, due in part to lower gains on sale resulting from lower disposition volume.
•Year over year, Core FFO per share increased 1.9% to $0.30, and AFFO per share increased 5.8% to $0.24.
•Same Store NOI grew 3.6% year over year on 2.4% Same Store Core revenue growth and 0.4% Same Store Core operating expense growth.
•Same Store average occupancy was 97.8%, up 190 basis points year over year.
•Same Store renewal rent growth of 3.3% and Same Store new lease rent growth of 5.5% drove Same Store blended rent growth of 4.0%.
•Revenue collections in the third quarter of 2020 were 98% of the Company's historical average collection rate.
•After resuming sourcing acquisitions in June 2020, the Company ramped up its acquisition pace over the course of the third quarter of 2020, finishing the quarter with $175 million of acquisitions and $115 million of dispositions.
•Subsequent to quarter end, as previously announced, the Company augmented and diversified its capital sources available to pursue external growth over a multi-year period by entering into a joint venture ("JV") with Rockpoint Group, L.L.C. ("Rockpoint"). The JV is expected to deploy over $1 billion to acquire and renovate homes to be operated as single-family rental properties, and will be capitalized with a total equity commitment of $375 million, of which $75 million (20%) will be provided by Invitation Homes.
President & Chief Executive Officer Dallas Tanner comments: "We continued to execute well in the third quarter, raising the bar higher for resident care in a time when it has never mattered more. The difference we are making in our residents' lives is being reflected in both our all-time-high resident satisfaction survey scores and in our financial results. Same Store occupancy has now increased for eleven consecutive months, and we are executing well to capture the market rental rates afforded by strong fundamentals in our markets. We also continue to collect rents near historical average levels. As a testament to the strength and stability of our business, year-to-date AFFO per share is up almost 7% versus last year in an environment that is challenging many other businesses inside and outside of the real estate sector.
"Importantly, we are achieving these results while continuing to put the safety of our stakeholders above all else. Our self-show technology and virtual experience that we have utilized for years is helping to protect prospective residents throughout the leasing process, and the freestanding nature of our assets is allowing us to safely serve residents and maintain homes. I could not be prouder of our associates for the way they are diligently adhering to safety protocols as they deliver the Invitation Homes experience to residents. We continue to provide our associates with proper PPE to protect themselves and our communities, and we continue to offer COVID-specific benefits and flexibility to associates designed to promote their health and wellbeing.
"With strong fundamentals in our business and with teams that have adapted well to continue operating safely and efficiently, we are ramping up external growth. We are also staying on the front foot with respect to strategic initiatives centered around enhancing the resident experience, including expansion of ancillary services. Put simply, we believe we are well-positioned for both the near-term and the long-term, and we are staying nimble and opportunistic to maximize both the near and long-term value we bring to our residents, our communities, and our shareholders."
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 2
Financial Results
| Net Income, FFO, Core FFO, and AFFO Per Share — Diluted | |||||||||||||||||||||||||||||||||||||||||
| Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||||||||
Net income (1) | $ | 0.06 | $ | 0.06 | $ | 0.23 | $ | 0.18 | |||||||||||||||||||||||||||||||||
FFO (1) | 0.27 | 0.27 | 0.89 | 0.81 | |||||||||||||||||||||||||||||||||||||
Core FFO (2) | 0.30 | 0.29 | 0.96 | 0.93 | |||||||||||||||||||||||||||||||||||||
AFFO (2) | 0.24 | 0.23 | 0.81 | 0.75 | |||||||||||||||||||||||||||||||||||||
(1)In accordance with GAAP and Nareit guidelines, net income per share and FFO per share are calculated as if the 3.0% Convertible Notes due July 1, 2019 (the "2019 Convertible Notes") were converted to common shares at the beginning of 2019, and as if the 3.5% Convertible Notes due January 15, 2022 (the "2022 Convertible Notes") were converted to common shares at the beginning of each relevant period in 2019 and 2020, unless such treatment is anti-dilutive to net income per share or FFO per share. See "Supplemental Schedule 1," footnote (1), for more detail on the treatment of convertible notes in each specific period presented in the table.
(2)Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period. See "Supplemental Schedule 1," footnote (2), for more detail on the treatment of convertible notes in each specific period presented in the table.
Net Income
Net income per share in the third quarter of 2020 was $0.06, compared to net income per share of $0.06 in the third quarter of 2019. Total revenues and total property operating and maintenance expenses in the third quarter of 2020 were $459 million and $178 million, respectively, compared to $443 million and $175 million, respectively, in the third quarter of 2019.
Net income per share in YTD 2020 was $0.23, compared to net income per share of $0.18 in YTD 2019. Total revenues and total property operating and maintenance expenses in YTD 2020 were $1,359 million and $512 million, respectively, compared to $1,320 million and $502 million, respectively, in YTD 2019.
Core FFO
Year over year, Core FFO per share in the third quarter of 2020 increased 1.9% to $0.30, primarily due to growth in Same Store NOI.
Year over year, Core FFO per share in YTD 2020 increased 3.6% to $0.96, primarily due to growth in Same Store NOI.
AFFO
Year over year, AFFO per share in the third quarter of 2020 increased 5.8% to $0.24, primarily due to the increase in Core FFO per share described above and lower recurring capital expenditures.
Year over year, AFFO per share in YTD 2020 increased 6.8% to $0.81, primarily due to the increase in Core FFO per share described above and lower recurring capital expenditures.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 3
Operating Results
| Same Store Operating Results Snapshot | |||||||||||||||||||||||||||||
| Number of homes in Same Store portfolio: | 71,810 | ||||||||||||||||||||||||||||
| Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||
| Core revenue growth (year-over-year) | 2.4 | % | 3.0 | % | |||||||||||||||||||||||||
| Core operating expense growth (year-over-year) | 0.4 | % | 2.2 | % | |||||||||||||||||||||||||
| NOI growth (year-over-year) | 3.6 | % | 3.4 | % | |||||||||||||||||||||||||
| Average occupancy | 97.8 | % | 95.9 | % | 97.3 | % | 96.3 | % | |||||||||||||||||||||
Bad debt % of gross rental revenues (1) | 2.1 | % | 0.4 | % | 1.5 | % | 0.4 | % | |||||||||||||||||||||
| Turnover rate | 7.3 | % | 8.7 | % | 20.4 | % | 23.3 | % | |||||||||||||||||||||
| Rental rate growth (lease-over-lease): | |||||||||||||||||||||||||||||
| Renewals | 3.3 | % | 4.8 | % | 3.7 | % | 5.1 | % | |||||||||||||||||||||
| New leases | 5.5 | % | 4.2 | % | 3.4 | % | 4.4 | % | |||||||||||||||||||||
| Blended | 4.0 | % | 4.6 | % | 3.6 | % | 4.9 | % | |||||||||||||||||||||
(1)Invitation Homes reserves residents' accounts receivables balances that are aged greater than 30 days as bad debt, under the rationale that a resident's security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident's security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. All rental revenues and other property income, in both total portfolio and Same Store portfolio presentations, are reflected net of bad debt.
| Revenue Collections Update | |||||||||||||||||||||||||||||
| Q3 2020 | Q2 2020 | Pre-COVID Average (2) | |||||||||||||||||||||||||||
Revenues collected % of revenues due: (1) | |||||||||||||||||||||||||||||
| Revenues collected in same month billed | 92 | % | 92 | % | 96 | % | |||||||||||||||||||||||
| Late collections of prior month billings | 5 | % | 4 | % | 3 | % | |||||||||||||||||||||||
| Total collections | 97 | % | 96 | % | 99 | % | |||||||||||||||||||||||
(1)Includes both rental revenues and other property income. Rent is considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. Security deposits retained to offset rents due are not included as revenue collected. See "Supplemental Schedule 3(b)," footnote (1), for detail on the Company's bad debt policy.
(2)Represents the period from October 2019 to March 2020.
Same Store NOI
For the Same Store portfolio of 71,810 homes, third quarter 2020 Same Store NOI increased 3.6% year over year on Same Store Core revenue growth of 2.4% and Same Store Core operating expense growth of 0.4%.
YTD 2020 Same Store NOI increased 3.4% year over year on Same Store Core revenue growth of 3.0% and Same Store Core operating expense growth of 2.2%.
Same Store Core Revenues
Third quarter 2020 Same Store Core revenue growth of 2.4% year over year was driven by a 3.2% increase in average monthly rent and a 190 basis point increase in average occupancy to 97.8%. As a result of the increases in average monthly rent and average occupancy, Same Store rental revenues increased 5.3% year over year on a gross basis before bad debt. With respect to Same Store Core revenue growth, two factors related to COVID-19 partially offset the favorable increases in average rent and
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 4
average occupancy: 1) an increase in bad debt from 0.4% of gross rental revenues in Q3 2019 to 2.1% of gross rental revenues in Q3 2020, which was a 175 basis point drag on Same Store Core revenue growth, all else equal; and 2) a 26.8% decrease in other property income, net of resident recoveries, which was a 94 basis point drag on Same Store Core revenue growth, all else equal, due primarily to non-enforcement of almost all late fees in the quarter.
YTD 2020 Same Store Core revenue growth of 3.0% year over year was driven by a 3.6% increase in average monthly rent and a 100 basis point increase in average occupancy to 97.3%. Bad debt increased from 0.4% of gross rental revenues in YTD 2019 to 1.5% of gross rental revenues in YTD 2020, which was a 106 basis point drag on Same Store Core revenue growth, all else equal. Other property income, net of resident recoveries, decreased 16.0% year over year, which was a 54 basis point drag on Same Store Core revenue growth, all else equal.
Same Store Core Operating Expenses
Third quarter 2020 Same Store Core operating expenses increased 0.4% year over year. Same Store controllable expenses, net of resident recoveries, decreased 4.7% year over year, primarily due to lower turnover expenses. Offsetting the improvement in controllable expenses was a 3.9% increase in fixed expenses, net of resident recoveries, driven primarily by higher property taxes.
YTD 2020 Same Store Core operating expenses increased 2.2% year over year, primarily due to higher property taxes. Same Store controllable expenses, net of resident recoveries, decreased 1.1% year over year.
Investment Management Activity
After resuming sourcing acquisitions in June, the Company ramped up its acquisition pace over the course of the third quarter, leveraging the advantages of its in-house local investment teams in conjunction with proprietary "AcquisitionIQ" technology to source compelling investment opportunities despite tight inventory levels. In the third quarter of 2020, Invitation Homes acquired 544 homes for $175 million, including estimated renovation costs. The Company also sold 403 homes for gross proceeds of $115 million in the third quarter of 2020.
Year to date, through September 30, 2020, the Company closed on the acquisition of 1,195 homes for $375 million, including estimated renovation costs, and sold 1,303 homes for gross proceeds of $360 million, resulting in a total portfolio home count of 79,397 homes as of September 30, 2020.
Subsequent to quarter end, the Company closed a bulk acquisition of 273 homes in Dallas that overlap closely with the Company's existing Dallas portfolio. The homes were acquired for $59 million at a 5.7% NOI yield based on in-place rents, and the Company sees upside to NOI in the portfolio by bringing it onto Invitation Homes' platform.
Balance Sheet and Capital Markets Activity
As of September 30, 2020, the Company had $1,560 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility, and maintained considerable cushion with respect to the facility's covenants. The Company's total indebtedness as of September 30, 2020 was $8,360 million, consisting of $6,515 million of secured debt and $1,845 million of unsecured debt.
The Company has no debt reaching final maturity before 2022, and weighted average years to maturity was 4.3 years as of September 30, 2020. 51% of the Company's homes were unencumbered at September 30, 2020, and net debt / TTM Adjusted EBITDAre at September 30, 2020 was 7.3x, down from 8.1x at December 31, 2019.
Joint Venture Formation
As previously announced, in October 2020, the Company entered into an agreement with Rockpoint to form a joint venture partnership that will acquire single-family homes to operate as rental residences.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 5
The JV will be capitalized with a total equity commitment of $375 million, of which $75 million (20%) will be committed by Invitation Homes and $300 million (80%) will be committed by Rockpoint. A total of over $1 billion (including debt) is expected to be deployed by the JV to acquire and renovate single-family homes in attractive locations in markets within the Western US, Southeast US, Florida, and Texas, where Invitation Homes already owns homes. The homes are expected to be of similarly high quality and similar characteristics to the homes in Invitation Homes’ existing portfolio.
Invitation Homes will provide investment, asset management, and property management services to the JV, for which it will earn asset management and property management fees and have the opportunity to earn a promoted interest subject to certain performance thresholds.
The JV is anticipated to have a five to eight year term, with certain sale rights in favor of each member, but has the flexibility to continue owning homes for an unlimited period of time if neither member triggers a sale. Upon trigger of a sale by Rockpoint or Invitation Homes, the other member of the JV will have a right of first offer to acquire the homes proposed for sale.
Invitation Homes also maintains the ability in all markets to continue deploying capital from its own balance sheet to acquire homes for the Invitation Homes portfolio, concurrent with the JV’s deployment of capital. In markets where Invitation Homes and the JV are investing concurrently, Invitation Homes’ investment personnel will source acquisitions without knowledge of which entity will acquire the homes, and upon being approved for close, homes will be allocated on a rotational basis between Invitation Homes and the JV according to pre-determined ratios of investment between the two entities. In addition, Invitation Homes maintains the right to enter into portfolio acquisitions of ten or more homes outside of the JV.
Dividend
As previously announced on October 23, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock. The dividend will be paid on or before November 25, 2020 to stockholders of record as of the close of business on November 10, 2020.
Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on October 29, 2020 to discuss results for the third quarter of 2020. The domestic dial-in number is 1-888-317-6003, and the international dial-in number is 1-412-317-6061. The passcode is 7102752. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through November 29, 2020 and can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using the replay passcode 10148238, or by using the link at www.invh.com.
Supplemental Information
The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes' Investor Relations website at www.invh.com.
Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures
Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States ("GAAP"). These measures are defined in the Glossary in the Supplemental Information and, as applicable, reconciled to the most comparable GAAP measures.
About Invitation Homes
Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 6
Investor Relations Contact
Greg Van Winkle
Phone: 844.456.INVH (4684)
Email: IR@InvitationHomes.com
Phone: 844.456.INVH (4684)
Email: IR@InvitationHomes.com
Media Relations Contact
Kristi DesJarlais
Phone: 972.421.3587
Email: Media@InvitationHomes.com
Phone: 972.421.3587
Email: Media@InvitationHomes.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Company's expectations regarding the performance of the Company's business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) and insurance costs, the Company's dependence on third parties for key services, risks related to the evaluation of properties, poor resident selection and defaults and non-renewals by the Company's residents, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of the ongoing COVID-19 pandemic on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Moreover, many of these factors have been heightened as a result of the ongoing and numerous adverse impacts of COVID-19. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and in the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC’s website at http://www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 7
| Consolidated Balance Sheets | |||||||||||||||||
($ in thousands, except shares and per share data) | |||||||||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||||||||
| (unaudited) | |||||||||||||||||
Assets: | |||||||||||||||||
Investments in single-family residential properties, net | $ | 16,132,101 | $ | 16,243,192 | |||||||||||||
Cash and cash equivalents | 559,567 | 92,258 | |||||||||||||||
Restricted cash | 249,341 | 193,987 | |||||||||||||||
Goodwill | 258,207 | 258,207 | |||||||||||||||
Other assets, net | 551,571 | 605,266 | |||||||||||||||
Total assets | $ | 17,750,787 | $ | 17,392,910 | |||||||||||||
Liabilities: | |||||||||||||||||
Mortgage loans, net | $ | 6,094,980 | $ | 6,238,461 | |||||||||||||
Secured term loan, net | 401,040 | 400,978 | |||||||||||||||
Term loan facility, net | 1,495,913 | 1,493,747 | |||||||||||||||
Revolving facility | — | — | |||||||||||||||
Convertible senior notes, net | 338,112 | 334,299 | |||||||||||||||
Accounts payable and accrued expenses | 261,355 | 186,110 | |||||||||||||||
Resident security deposits | 155,871 | 147,787 | |||||||||||||||
Other liabilities | 672,139 | 325,450 | |||||||||||||||
Total liabilities | 9,419,410 | 9,126,832 | |||||||||||||||
Equity: | |||||||||||||||||
Stockholders' equity | |||||||||||||||||
| Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of September 30, 2020 and December 31, 2019 | — | — | |||||||||||||||
| Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 560,534,032 and 541,642,725 outstanding as of September 30, 2020 and December 31, 2019, respectively | 5,605 | 5,416 | |||||||||||||||
Additional paid-in capital | 9,521,179 | 9,010,194 | |||||||||||||||
Accumulated deficit | (646,950) | (524,588) | |||||||||||||||
Accumulated other comprehensive loss | (598,966) | (276,600) | |||||||||||||||
Total stockholders' equity | 8,280,868 | 8,214,422 | |||||||||||||||
Non-controlling interests | 50,509 | 51,656 | |||||||||||||||
Total equity | 8,331,377 | 8,266,078 | |||||||||||||||
Total liabilities and equity | $ | 17,750,787 | $ | 17,392,910 | |||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 8
| Consolidated Statements of Operations | |||||||||||||||||||||||||||||||||||
($ in thousands, except shares and per share amounts) (unaudited) | |||||||||||||||||||||||||||||||||||
| Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Rental revenues | $ | 424,191 | $ | 408,951 | $ | 1,257,858 | $ | 1,223,221 | |||||||||||||||||||||||||||
Other property income | 34,993 | 34,375 | 100,870 | 97,187 | |||||||||||||||||||||||||||||||
Rental revenues and other property income | 459,184 | 443,326 | 1,358,728 | 1,320,408 | |||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Property operating and maintenance | 177,997 | 175,491 | 511,915 | 502,411 | |||||||||||||||||||||||||||||||
Property management expense | 14,824 | 15,872 | 43,725 | 47,053 | |||||||||||||||||||||||||||||||
General and administrative | 17,972 | 16,405 | 46,626 | 58,899 | |||||||||||||||||||||||||||||||
Interest expense | 87,713 | 89,067 | 258,541 | 278,756 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 138,147 | 133,315 | 410,440 | 399,955 | |||||||||||||||||||||||||||||||
Impairment and other | 1,723 | 4,740 | 4,670 | 11,803 | |||||||||||||||||||||||||||||||
Total expenses | 438,376 | 434,890 | 1,275,917 | 1,298,877 | |||||||||||||||||||||||||||||||
Other, net | (3,049) | 4,735 | 2,035 | 8,470 | |||||||||||||||||||||||||||||||
Gain on sale of property, net of tax | 15,106 | 20,812 | 41,473 | 64,556 | |||||||||||||||||||||||||||||||
Net income | 32,865 | 33,983 | 126,319 | 94,557 | |||||||||||||||||||||||||||||||
| Net income attributable to non-controlling interests | (211) | (276) | (806) | (1,086) | |||||||||||||||||||||||||||||||
Net income attributable to common stockholders | 32,654 | 33,707 | 125,513 | 93,471 | |||||||||||||||||||||||||||||||
Net income available to participating securities | (114) | (91) | (335) | (306) | |||||||||||||||||||||||||||||||
Net income available to common stockholders — basic and diluted | $ | 32,540 | $ | 33,616 | $ | 125,178 | $ | 93,165 | |||||||||||||||||||||||||||
| Weighted average common shares outstanding — basic | 560,598,995 | 537,771,245 | 550,722,684 | 528,209,033 | |||||||||||||||||||||||||||||||
| Weighted average common shares outstanding — diluted | 561,871,373 | 538,644,888 | 551,947,278 | 529,160,353 | |||||||||||||||||||||||||||||||
Net income per common share — basic | $ | 0.06 | $ | 0.06 | $ | 0.23 | $ | 0.18 | |||||||||||||||||||||||||||
Net income per common share — diluted | $ | 0.06 | $ | 0.06 | $ | 0.23 | $ | 0.18 | |||||||||||||||||||||||||||
| Dividends declared per common share | $ | 0.15 | $ | 0.13 | $ | 0.45 | $ | 0.39 | |||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 9
Supplemental Schedule 1
Reconciliation of FFO, Core FFO, and AFFO | |||||||||||||||||||||||||||||||||||
($ in thousands, except shares and per share amounts) (unaudited) | |||||||||||||||||||||||||||||||||||
FFO Reconciliation | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||||||||
| Net income available to common stockholders | $ | 32,540 | $ | 33,616 | $ | 125,178 | $ | 93,165 | |||||||||||||||||||||||||||
Net income available to participating securities | 114 | 91 | 335 | 306 | |||||||||||||||||||||||||||||||
Non-controlling interests | 211 | 276 | 806 | 1,086 | |||||||||||||||||||||||||||||||
Depreciation and amortization on real estate assets | 136,517 | 132,266 | 406,078 | 396,568 | |||||||||||||||||||||||||||||||
Impairment on depreciated real estate investments | 289 | 3,960 | 4,202 | 11,289 | |||||||||||||||||||||||||||||||
| Net gain on sale of previously depreciated investments in real estate | (15,106) | (20,812) | (41,473) | (64,556) | |||||||||||||||||||||||||||||||
FFO | $ | 154,565 | $ | 149,397 | $ | 495,126 | $ | 437,858 | |||||||||||||||||||||||||||
Core FFO Reconciliation | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||||||||
FFO | $ | 154,565 | $ | 149,397 | $ | 495,126 | $ | 437,858 | |||||||||||||||||||||||||||
| Non-cash interest expense | 6,883 | 10,385 | 26,640 | 37,422 | |||||||||||||||||||||||||||||||
Share-based compensation expense | 6,086 | 4,625 | 12,293 | 13,847 | |||||||||||||||||||||||||||||||
Offering related expenses | — | 129 | — | 2,148 | |||||||||||||||||||||||||||||||
Merger and transaction-related expenses | — | — | — | 4,347 | |||||||||||||||||||||||||||||||
Severance expense | 133 | 881 | 388 | 8,225 | |||||||||||||||||||||||||||||||
Unrealized gains on investment in equity securities | — | (6,480) | (34) | (6,480) | |||||||||||||||||||||||||||||||
Casualty losses, net | 1,434 | 780 | 468 | 514 | |||||||||||||||||||||||||||||||
Core FFO | $ | 169,101 | $ | 159,717 | $ | 534,881 | $ | 497,881 | |||||||||||||||||||||||||||
AFFO Reconciliation | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||||||||
Core FFO | $ | 169,101 | $ | 159,717 | $ | 534,881 | $ | 497,881 | |||||||||||||||||||||||||||
Recurring capital expenditures | (33,861) | (36,653) | (87,466) | (93,563) | |||||||||||||||||||||||||||||||
Adjusted FFO | $ | 135,240 | $ | 123,064 | $ | 447,415 | $ | 404,318 | |||||||||||||||||||||||||||
| Net income available to common stockholders | |||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding — diluted (1) | 561,871,373 | 538,644,888 | 551,947,278 | 529,160,353 | |||||||||||||||||||||||||||||||
Net income per common share — diluted (1) | $ | 0.06 | $ | 0.06 | $ | 0.23 | $ | 0.18 | |||||||||||||||||||||||||||
FFO | |||||||||||||||||||||||||||||||||||
Numerator for FFO per common share — diluted(1) | $ | 154,565 | $ | 149,397 | $ | 507,995 | $ | 443,444 | |||||||||||||||||||||||||||
Weighted average common shares and OP Units outstanding — diluted (1) | 565,655,768 | 544,481,679 | 570,851,976 | 544,506,626 | |||||||||||||||||||||||||||||||
FFO per share — diluted (1) | $ | 0.27 | $ | 0.27 | $ | 0.89 | $ | 0.81 | |||||||||||||||||||||||||||
| Core FFO and Adjusted FFO | |||||||||||||||||||||||||||||||||||
Weighted average common shares and OP Units outstanding — diluted (2) | 565,655,768 | 544,481,679 | 555,751,533 | 536,183,368 | |||||||||||||||||||||||||||||||
Core FFO per share — diluted (2) | $ | 0.30 | $ | 0.29 | $ | 0.96 | $ | 0.93 | |||||||||||||||||||||||||||
AFFO per share — diluted (2) | $ | 0.24 | $ | 0.23 | $ | 0.81 | $ | 0.75 | |||||||||||||||||||||||||||
(1)In accordance with GAAP and Nareit guidelines, net income per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of 2019, and as if the 2022 Convertible Notes were converted to common shares at the beginning of each relevant period in 2019 and 2020, unless such treatment is anti-dilutive to net income per share or FFO per share.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 10
In Q3 2020, treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to both net income per share and FFO per share. As such, Q3 2020 net income per share and FFO per share do not treat the 2022 Convertible Notes as if converted.
In Q3 2019, treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to both net income per share and FFO per share. As such, Q3 2019 net income per share and FFO per share do not treat the 2022 Convertible Notes as if converted.
In YTD 2020, treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to net income per share and dilutive to FFO per share. As such, YTD 2020 net income per share does not treat the 2022 Convertible Notes as if converted. YTD 2020 FFO per share treats the 2022 Convertible Notes as if converted, thereby adjusting FFO in the numerator to remove the interest expense associated with the 2022 Convertible Notes and adjusting shares outstanding in the denominator to include shares issuable on conversion of the 2022 Convertible Notes.
In YTD 2019, treatment of the 2019 Convertible Notes as if converted for the period in which they were outstanding, from January 1, 2019 through June 30, 2019, would be anti-dilutive to net income per share and dilutive to FFO per share. Treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to both net income per share and FFO per share in YTD 2019. As such, YTD 2019 net income per share reflects the conversion of the 2019 Convertible Notes for the period from July 1, 2019 through September 30, 2019, but does not treat the 2019 Convertible Notes as if converted for the period from January 1, 2019 through June 30, 2019, and does not treat the 2022 Convertible Notes as if converted. YTD 2019 FFO per share does not treat the 2022 Convertible Notes as if converted, but treats the 2019 Convertible Notes as if converted on January 1, 2019, thereby adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes and adjusting shares outstanding in the denominator to include shares issuable on conversion of the 2019 Convertible Notes.
(2)Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period.
As such, Q3 2020, Q3 2019, and YTD 2020 Core FFO and AFFO per share reflect the conversion of the 2019 Convertible Notes, but do not treat the 2022 Convertible Notes as if converted.
YTD 2019 Core FFO and AFFO per share reflect the conversion of the 2019 Convertible Notes for the period from July 1, 2019 through September 30, 2019, but do not treat the 2019 Convertible Notes as if converted for the period from January 1, 2019 through June 30, 2019. For the period from January 1, 2019 through June 30, 2019, cash interest expense associated with the 2019 Convertible Notes has been included in Core FFO and AFFO in the numerators, and shares issued upon conversion of the 2019 Convertible Notes have not been included as shares outstanding in the denominators. The 2022 Convertible Notes are not treated as if converted.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 11
Supplemental Schedule 2(a)
| Diluted Shares Outstanding | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
Weighted Average Amounts for Net Income (1) | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||
| Common shares — basic | 560,598,995 | 537,771,245 | 550,722,684 | 528,209,033 | |||||||||||||||||||||||||
Shares potentially issuable from vesting/conversion of equity-based awards | 1,272,378 | 873,643 | 1,224,594 | 951,320 | |||||||||||||||||||||||||
| Total common shares — diluted | 561,871,373 | 538,644,888 | 551,947,278 | 529,160,353 | |||||||||||||||||||||||||
Weighted average amounts for FFO (1) | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||
| Common shares — basic | 560,598,995 | 537,771,245 | 550,722,684 | 528,209,033 | |||||||||||||||||||||||||
| OP units — basic | 3,463,285 | 5,463,285 | 3,463,285 | 6,526,571 | |||||||||||||||||||||||||
Shares potentially issuable from vesting/conversion of equity-based awards | 1,593,488 | 1,247,149 | 1,565,564 | 1,447,764 | |||||||||||||||||||||||||
| Shares issuable from Convertible Notes | — | — | 15,100,443 | 8,323,258 | |||||||||||||||||||||||||
| Total common shares and units — diluted | 565,655,768 | 544,481,679 | 570,851,976 | 544,506,626 | |||||||||||||||||||||||||
Weighted average amounts for Core and AFFO (2) | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||
| Common shares — basic | 560,598,995 | 537,771,245 | 550,722,684 | 528,209,033 | |||||||||||||||||||||||||
| OP units — basic | 3,463,285 | 5,463,285 | 3,463,285 | 6,526,571 | |||||||||||||||||||||||||
Shares potentially issuable from vesting/conversion of equity-based awards | 1,593,488 | 1,247,149 | 1,565,564 | 1,447,764 | |||||||||||||||||||||||||
| Total common shares and units — diluted | 565,655,768 | 544,481,679 | 555,751,533 | 536,183,368 | |||||||||||||||||||||||||
| Period end amounts for Core FFO, and AFFO | September 30, 2020 | ||||||||||||||||||||||||||||
| Common shares | 560,534,032 | ||||||||||||||||||||||||||||
| OP units | 3,463,285 | ||||||||||||||||||||||||||||
Shares potentially issuable from vesting/conversion of equity-based awards | 1,387,456 | ||||||||||||||||||||||||||||
Total common shares and units — diluted | 565,384,773 | ||||||||||||||||||||||||||||
(1)In accordance with GAAP and Nareit guidelines, net income per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of 2019, and as if the 2022 Convertible Notes were converted to common shares at the beginning of each relevant period in 2019 and 2020, unless such treatment is anti-dilutive to net income per share or FFO per share. See "Supplemental Schedule 1," footnote (1), for more detail on the treatment of convertible notes in each specific period presented in the table.
(2)Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period. See "Supplemental Schedule 1," footnote (2), for more detail on the treatment of convertible notes in each specific period presented in the table.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 12
Supplemental Schedule 2(b)
| Debt Structure and Leverage Ratios — September 30, 2020 | |||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||
| Wtd Avg | Wtd Avg | ||||||||||||||||||||||||||||
| Interest | Years | ||||||||||||||||||||||||||||
| Debt Structure | Balance | % of Total | Rate (1) | to Maturity (2) | |||||||||||||||||||||||||
| Secured: | |||||||||||||||||||||||||||||
Fixed (3) | $ | 1,400,439 | 16.8 | % | 4.0 | % | 7.8 | ||||||||||||||||||||||
| Floating — swapped to fixed | 5,020,000 | 60.0 | % | 3.9 | % | 4.4 | |||||||||||||||||||||||
| Floating | 94,181 | 1.1 | % | 1.5 | % | 5.0 | |||||||||||||||||||||||
| Total secured | 6,514,620 | 77.9 | % | 3.9 | % | 5.1 | |||||||||||||||||||||||
| Unsecured: | |||||||||||||||||||||||||||||
| Fixed (Convertible) | 345,000 | 4.2 | % | 3.5 | % | 1.3 | |||||||||||||||||||||||
| Floating — swapped to fixed | 1,500,000 | 17.9 | % | 3.6 | % | 1.4 | |||||||||||||||||||||||
| Floating | — | — | % | — | % | — | |||||||||||||||||||||||
| Total unsecured | 1,845,000 | 22.1 | % | 3.5 | % | 1.3 | |||||||||||||||||||||||
| Total Debt: | |||||||||||||||||||||||||||||
Fixed + floating swapped to fixed (3) | 8,265,439 | 98.9 | % | 3.9 | % | 4.3 | |||||||||||||||||||||||
| Floating | 94,181 | 1.1 | % | 1.5 | % | 5.0 | |||||||||||||||||||||||
| Total debt | 8,359,620 | 100.0 | % | 3.8 | % | 4.3 | |||||||||||||||||||||||
| Unamortized discounts on notes payable | (9,265) | ||||||||||||||||||||||||||||
| Deferred financing costs, net | (20,310) | ||||||||||||||||||||||||||||
| Total Debt per Balance Sheet | 8,330,045 | ||||||||||||||||||||||||||||
| Retained and repurchased certificates | (311,499) | ||||||||||||||||||||||||||||
Cash, ex-security deposits and letters of credit (4) | (649,382) | ||||||||||||||||||||||||||||
| Deferred financing costs, net | 20,310 | ||||||||||||||||||||||||||||
| Unamortized discounts on notes payable | 9,265 | ||||||||||||||||||||||||||||
| Net debt | $ | 7,398,739 | |||||||||||||||||||||||||||
| Leverage Ratios | September 30, 2020 | ||||||||||||||||||||||||||||
Net debt / TTM Adjusted EBITDAre | 7.3x | ||||||||||||||||||||||||||||
Unsecured Facility Covenant Compliance (5) | September 30, 2020 | Covenant Limit | |||||||||||||||||||||||||||
| Total leverage ratio | 30.1 | % | 65.0% | (maximum) | |||||||||||||||||||||||||
| Secured leverage ratio | 22.4 | % | 55.0% | (maximum) | |||||||||||||||||||||||||
Unencumbered leverage ratio | 9.0 | % | 65.0% | (maximum) | |||||||||||||||||||||||||
| Fixed charge coverage ratio | 3.3x | 1.5x | (minimum) | ||||||||||||||||||||||||||
| Unencumbered fixed charge coverage ratio | 7.7x | 1.5x | (minimum) | ||||||||||||||||||||||||||
(1)Includes the impact of interest rate swaps in place and effective as of September 30, 2020.
(2)Assumes all extension options are exercised.
(3)For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.
(4)Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit.
(5)Covenant calculations are specifically defined in the Company's Revolving Credit and Term Loan Agreement, and summarized in the "Glossary and Reconciliations" section of this report.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 13
Supplemental Schedule 2(c)
| Debt Maturity Schedule — September 30, 2020 | |||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| Revolving | |||||||||||||||||||||||||||||||||||
| Secured | Unsecured | Credit | % of | ||||||||||||||||||||||||||||||||
Debt Maturities, with Extensions (1) | Debt | Debt | Facility | Balance | Total | ||||||||||||||||||||||||||||||
| 2020 | $ | — | $ | — | $ | — | $ | — | — | % | |||||||||||||||||||||||||
| 2021 | — | — | — | — | — | % | |||||||||||||||||||||||||||||
| 2022 | — | 1,845,000 | — | 1,845,000 | 22.1 | % | |||||||||||||||||||||||||||||
| 2023 | 732,778 | — | — | 732,778 | 8.8 | % | |||||||||||||||||||||||||||||
| 2024 | 614,031 | — | — | 614,031 | 7.3 | % | |||||||||||||||||||||||||||||
| 2025 | 2,842,933 | — | — | 2,842,933 | 34.0 | % | |||||||||||||||||||||||||||||
| 2026 | 924,439 | — | — | 924,439 | 11.1 | % | |||||||||||||||||||||||||||||
| 2027 | 997,076 | — | — | 997,076 | 11.9 | % | |||||||||||||||||||||||||||||
| Thereafter | 403,363 | — | — | 403,363 | 4.8 | % | |||||||||||||||||||||||||||||
| 6,514,620 | 1,845,000 | — | 8,359,620 | 100.0 | % | ||||||||||||||||||||||||||||||
| Unamortized discounts on notes payable | (2,377) | (6,888) | — | (9,265) | |||||||||||||||||||||||||||||||
| Deferred financing costs, net | (16,223) | (4,087) | — | (20,310) | |||||||||||||||||||||||||||||||
| Total per Balance Sheet | $ | 6,496,020 | $ | 1,834,025 | $ | — | $ | 8,330,045 | |||||||||||||||||||||||||||
(1)Assumes all extension options are exercised.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 14
Supplemental Schedule 2(d)
| Cost to Maturity of Debt as of September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Percentage of Weighted Average Debt Outstanding by Type | Weighted Average Cost by Instrument Type | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average | Issued | Issued | Total | Spread to | Fixed Cost | Total Debt | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amount of | Floating | Floating | Fixed | LIBOR | of | Including | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | and | but Swapped | Issued | or Swapped | For Floating | Interest Rate | Fixed Rate | Swap | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding (1) | Not Swapped | to Fixed | Fixed (2) | to Fixed | Rate Debt | Swaps | Debt | Impact (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q20 | $ | 8,359,620 | 1.1 | % | 78.0 | % | 20.9 | % | 98.9 | % | 1.4 | % | 2.4 | % | 3.9 | % | 3.8 | % | |||||||||||||||||||||||||||||||||||||||||
| 2021 | 8,359,620 | 4.2 | % | 74.9 | % | 20.9 | % | 95.8 | % | 1.4 | % | 2.5 | % | 3.9 | % | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| 2022 | 6,680,852 | 0.5 | % | 78.3 | % | 21.2 | % | 99.5 | % | 1.3 | % | 2.7 | % | 4.0 | % | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| 2023 | 5,799,910 | — | % | 75.9 | % | 24.1 | % | 100.0 | % | 1.3 | % | 2.8 | % | 4.0 | % | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| 2024 | 5,744,933 | — | % | 75.6 | % | 24.4 | % | 100.0 | % | 1.3 | % | 2.8 | % | 4.0 | % | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||
| 2025 | 3,469,329 | 15.2 | % | 44.4 | % | 40.4 | % | 84.8 | % | 1.4 | % | 3.0 | % | 4.0 | % | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||
| 2026 | 1,423,233 | 1.6 | % | — | % | 98.4 | % | 98.4 | % | 1.4 | % | N/A | 4.0 | % | 4.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| 2027 | 840,437 | — | % | — | % | 100.0 | % | 100.0 | % | N/A | N/A | 3.9 | % | 3.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| 2028 | 403,363 | — | % | — | % | 100.0 | % | 100.0 | % | N/A | N/A | 3.6 | % | 3.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
(1)In each period, represents September 30, 2020 debt that remains outstanding assuming all debt is held until final maturity with all extension options exercised.
(2)For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.
(3)Assumes September 30, 2020 LIBOR rate of 0.15% for all future periods.
Note: Schedule 2(d) is presented to show the estimated overall cost of Invitation Homes' debt, based on debt and interest rate swaps in place as of September 30, 2020, as well as the rate for 30-day LIBOR as of September 30, 2020. New debt not presented in this table may be issued, and/or existing debt presented in this table may be repaid prior to maturity. Similarly, new interest rate swaps may be put in place. 30-day LIBOR may also change. The aforementioned activities may change the amount of outstanding debt, the percentage of debt floating, swapped, or fixed, and/or the weighted average cost of debt and hedging instruments from what is presented in Schedule 2(d).
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 15
Supplemental Schedule 3(a)
| Summary of Operating Information by Home Portfolio | |||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Number of Homes, period-end | Q3 2020 | ||||||||||||||||||||||||||||||||||||||||
| Total portfolio | 79,397 | ||||||||||||||||||||||||||||||||||||||||
| Same Store portfolio | 71,810 | ||||||||||||||||||||||||||||||||||||||||
| Same Store % of Total | 90.4 | % | |||||||||||||||||||||||||||||||||||||||
| Core Revenues | Q3 2020 | Q3 2019 | Change YoY | YTD 2020 | YTD 2019 | Change YoY | |||||||||||||||||||||||||||||||||||
| Total portfolio | $ | 435,509 | $ | 423,992 | 2.7 | % | $ | 1,294,855 | $ | 1,266,362 | 2.2 | % | |||||||||||||||||||||||||||||
| Same Store portfolio | 397,528 | 388,221 | 2.4 | % | 1,188,430 | 1,154,223 | 3.0 | % | |||||||||||||||||||||||||||||||||
| Core Operating expenses | Q3 2020 | Q3 2019 | Change YoY | YTD 2020 | YTD 2019 | Change YoY | |||||||||||||||||||||||||||||||||||
| Total portfolio | $ | 154,322 | $ | 156,157 | (1.2) | % | $ | 448,042 | $ | 448,365 | (0.1) | % | |||||||||||||||||||||||||||||
| Same Store portfolio | 141,233 | 140,734 | 0.4 | % | 408,356 | 399,467 | 2.2 | % | |||||||||||||||||||||||||||||||||
| Net Operating Income | Q3 2020 | Q3 2019 | Change YoY | YTD 2020 | YTD 2019 | Change YoY | |||||||||||||||||||||||||||||||||||
| Total portfolio | $ | 281,187 | $ | 267,835 | 5.0 | % | $ | 846,813 | $ | 817,997 | 3.5 | % | |||||||||||||||||||||||||||||
| Same Store portfolio | 256,295 | 247,487 | 3.6 | % | 780,074 | 754,756 | 3.4 | % | |||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 16
Supplemental Schedule 3(b)
Same Store Portfolio Operating Detail | ||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Change | Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Q3 2020 | Q3 2019 | YoY | Q2 2020 | Seq | YTD 2020 | YTD 2019 | YoY | |||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rental revenues (1) | $ | 387,581 | $ | 374,632 | 3.5 | % | $ | 384,662 | 0.8 | % | $ | 1,155,856 | $ | 1,115,452 | 3.6 | % | ||||||||||||||||||||||||||||||||||
Other property income (1)(2)(3) | 31,549 | 31,273 | 0.9 | % | 27,428 | 15.0 | % | 91,180 | 87,984 | 3.6 | % | |||||||||||||||||||||||||||||||||||||||
Total revenues | 419,130 | 405,905 | 3.3 | % | 412,090 | 1.7 | % | 1,247,036 | 1,203,436 | 3.6 | % | |||||||||||||||||||||||||||||||||||||||
Less: Resident recoveries (3) | (21,602) | (17,684) | 22.2 | % | (18,487) | 16.8 | % | (58,606) | (49,213) | 19.1 | % | |||||||||||||||||||||||||||||||||||||||
Core revenues | 397,528 | 388,221 | 2.4 | % | 393,603 | 1.0 | % | 1,188,430 | 1,154,223 | 3.0 | % | |||||||||||||||||||||||||||||||||||||||
| Fixed Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property taxes | 69,981 | 66,271 | 5.6 | % | 70,218 | (0.3) | % | 208,880 | 198,283 | 5.3 | % | |||||||||||||||||||||||||||||||||||||||
| Insurance expenses | 7,704 | 7,892 | (2.4) | % | 7,715 | (0.1) | % | 23,251 | 23,186 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||
HOA expenses | 8,184 | 8,507 | (3.8) | % | 7,205 | 13.6 | % | 23,510 | 23,674 | (0.7) | % | |||||||||||||||||||||||||||||||||||||||
| Controllable Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repairs and maintenance | 26,142 | 24,975 | 4.7 | % | 20,279 | 28.9 | % | 66,312 | 61,632 | 7.6 | % | |||||||||||||||||||||||||||||||||||||||
| Personnel | 15,003 | 14,372 | 4.4 | % | 14,685 | 2.2 | % | 44,638 | 46,184 | (3.3) | % | |||||||||||||||||||||||||||||||||||||||
Turnover | 10,922 | 13,600 | (19.7) | % | 9,585 | 13.9 | % | 30,444 | 33,810 | (10.0) | % | |||||||||||||||||||||||||||||||||||||||
Utilities (3) | 20,789 | 17,753 | 17.1 | % | 18,542 | 12.1 | % | 56,701 | 47,096 | 20.4 | % | |||||||||||||||||||||||||||||||||||||||
Leasing and marketing (4) | 2,871 | 2,680 | 7.1 | % | 2,876 | (0.2) | % | 8,584 | 7,907 | 8.6 | % | |||||||||||||||||||||||||||||||||||||||
| Property administrative | 1,239 | 2,368 | (47.7) | % | 982 | 26.2 | % | 4,642 | 6,908 | (32.8) | % | |||||||||||||||||||||||||||||||||||||||
Property operating and maintenance expenses | 162,835 | 158,418 | 2.8 | % | 152,087 | 7.1 | % | 466,962 | 448,680 | 4.1 | % | |||||||||||||||||||||||||||||||||||||||
Less: Resident recoveries (3) | (21,602) | (17,684) | 22.2 | % | (18,487) | 16.8 | % | (58,606) | (49,213) | 19.1 | % | |||||||||||||||||||||||||||||||||||||||
Core operating expenses | 141,233 | 140,734 | 0.4 | % | 133,600 | 5.7 | % | 408,356 | 399,467 | 2.2 | % | |||||||||||||||||||||||||||||||||||||||
Net Operating Income | $ | 256,295 | $ | 247,487 | 3.6 | % | $ | 260,003 | (1.4) | % | $ | 780,074 | $ | 754,756 | 3.4 | % | ||||||||||||||||||||||||||||||||||
(1)All rental revenues and other property income are reflected net of bad debt. Invitation Homes reserves residents' accounts receivables balances that are aged greater than 30 days as bad debt, under the rationale that a resident's security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident's security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. Increases in bad debt against rental revenues were a 175 basis point and 106 basis point drag on year-over-year Same Store Core revenue growth in Q3 2020 and YTD 2020, respectively.
(2)In light of the COVID-19 pandemic, almost all late fees typically enforced in accordance with lease agreements were not enforced in Q3 2020 and Q2 2020. Primarily due to this non-enforcement of late fees, lower other property income, net of resident recoveries, was a 94 basis point and 54 basis point drag on year-over-year Same Store Core revenue growth in Q3 2020 and YTD 2020, respectively.
(3)The year-over-year increases in utilities and resident recoveries are primarily attributable to an ongoing transition in utility billing policy. Residents continue to be responsible for costs associated with their water, sewer, and waste removal services, but providers of these services now invoice Invitation Homes rather than the resident for payment. Invitation Homes pays the utility provider, and subsequently bills the resident for reimbursement, resulting in materially higher utility expense that is offset by materially higher resident recoveries. All resident recoveries, including utility reimbursements, are included in other property income.
(4)Same Store leasing and marketing expense includes amortization of leasing commissions of $2,587, $2,420, $2,622, $7,792, and $7,130 for Q3 2020, Q3 2019, Q2 2020, YTD 2020, and YTD 2019, respectively.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 17
Supplemental Schedule 3(c)
| Same Store Quarterly Operating Trends | |||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||
| Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | |||||||||||||||||||||||||||||||
| Average occupancy | 97.8 | % | 97.5 | % | 96.7 | % | 96.0 | % | 95.9 | % | |||||||||||||||||||||||||
| Turnover rate | 7.3 | % | 6.9 | % | 6.2 | % | 6.4 | % | 8.7 | % | |||||||||||||||||||||||||
| Trailing four quarters turnover rate | 26.8 | % | 28.2 | % | 29.6 | % | 29.6 | % | N/A | ||||||||||||||||||||||||||
| Average monthly rent | $ | 1,881 | $ | 1,868 | $ | 1,851 | $ | 1,838 | $ | 1,823 | |||||||||||||||||||||||||
| Rental rate growth (lease-over-lease): | |||||||||||||||||||||||||||||||||||
| Renewals | 3.3 | % | 3.5 | % | 4.3 | % | 4.6 | % | 4.8 | % | |||||||||||||||||||||||||
| New leases | 5.5 | % | 2.7 | % | 1.8 | % | 1.3 | % | 4.2 | % | |||||||||||||||||||||||||
| Blended | 4.0 | % | 3.3 | % | 3.5 | % | 3.3 | % | 4.6 | % | |||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 18
Supplemental Schedule 4
Portfolio Characteristics — As of and for the Quarter Ended September 30, 2020 (1) | |||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||
| Average | |||||||||||||||||||||||||||||||||||
| Number of | Average | Average | Monthly | Percent of | |||||||||||||||||||||||||||||||
| Homes | Occupancy | Monthly Rent | Rent PSF | Revenue | |||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||
| Southern California | 7,973 | 97.9 | % | $ | 2,533 | $ | 1.49 | 13.1 | % | ||||||||||||||||||||||||||
| Northern California | 4,266 | 97.6 | % | 2,209 | 1.42 | 6.4 | % | ||||||||||||||||||||||||||||
| Seattle | 3,604 | 97.1 | % | 2,301 | 1.20 | 5.6 | % | ||||||||||||||||||||||||||||
| Phoenix | 7,986 | 97.2 | % | 1,481 | 0.90 | 8.1 | % | ||||||||||||||||||||||||||||
| Las Vegas | 2,993 | 97.8 | % | 1,708 | 0.86 | 3.5 | % | ||||||||||||||||||||||||||||
| Denver | 2,317 | 96.1 | % | 2,109 | 1.16 | 3.4 | % | ||||||||||||||||||||||||||||
| Western US Subtotal | 29,139 | 97.4 | % | 2,052 | 1.19 | 40.1 | % | ||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||
| South Florida | 8,387 | 95.7 | % | 2,232 | 1.20 | 12.3 | % | ||||||||||||||||||||||||||||
| Tampa | 8,087 | 97.2 | % | 1,721 | 0.92 | 9.5 | % | ||||||||||||||||||||||||||||
| Orlando | 6,165 | 96.7 | % | 1,728 | 0.93 | 7.2 | % | ||||||||||||||||||||||||||||
| Jacksonville | 1,857 | 97.2 | % | 1,733 | 0.87 | 2.2 | % | ||||||||||||||||||||||||||||
| Florida Subtotal | 24,496 | 96.6 | % | 1,898 | 1.01 | 31.2 | % | ||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||
| Atlanta | 12,510 | 97.3 | % | 1,566 | 0.76 | 13.2 | % | ||||||||||||||||||||||||||||
| Carolinas | 4,826 | 96.9 | % | 1,633 | 0.76 | 5.2 | % | ||||||||||||||||||||||||||||
| Southeast US Subtotal | 17,336 | 97.2 | % | 1,584 | 0.76 | 18.4 | % | ||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||
| Houston | 2,166 | 95.7 | % | 1,589 | 0.82 | 2.3 | % | ||||||||||||||||||||||||||||
| Dallas | 2,444 | 95.3 | % | 1,841 | 0.88 | 3.0 | % | ||||||||||||||||||||||||||||
| Texas Subtotal | 4,610 | 95.5 | % | 1,721 | 0.85 | 5.3 | % | ||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||
| Chicago | 2,664 | 96.9 | % | 2,014 | 1.24 | 3.5 | % | ||||||||||||||||||||||||||||
| Minneapolis | 1,127 | 98.0 | % | 1,951 | 1.00 | 1.5 | % | ||||||||||||||||||||||||||||
| Midwest US Subtotal | 3,791 | 97.2 | % | 1,995 | 1.16 | 5.0 | % | ||||||||||||||||||||||||||||
| Announced Market-in-Exit: | |||||||||||||||||||||||||||||||||||
Nashville (2) | 25 | 39.1 | % | 2,004 | 0.75 | — | % | ||||||||||||||||||||||||||||
| Total / Average | 79,397 | 96.9 | % | $ | 1,881 | $ | 1.01 | 100.0 | % | ||||||||||||||||||||||||||
| Same Store Total / Average | 71,810 | 97.8 | % | $ | 1,881 | $ | 1.01 | 91.3 | % | ||||||||||||||||||||||||||
(1)All data is for the total portfolio, unless otherwise noted.
(2)In December 2019, Invitation Homes announced a plan to fully exit the Nashville market, and sold 708 homes in Nashville in a bulk transaction. The Company is pursuing the sale of the remaining 25 homes in the market as of September 30, 2020.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 19
Supplemental Schedule 5(a)
| Same Store Core Revenue Growth Summary — YoY Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands, except avg. monthly rent) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avg. Monthly Rent | Average Occupancy | Core Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| YoY, Q3 2020 | # Homes | Q3 2020 | Q3 2019 | Change | Q3 2020 | Q3 2019 | Change | Q3 2020 | Q3 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southern California | 7,633 | $ | 2,537 | $ | 2,445 | 3.8 | % | 98.5 | % | 95.7 | % | 2.8 | % | $ | 55,052 | $ | 54,441 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Northern California | 3,810 | 2,198 | 2,103 | 4.5 | % | 98.7 | % | 96.7 | % | 2.0 | % | 24,469 | 23,867 | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Seattle | 3,140 | 2,294 | 2,217 | 3.5 | % | 98.0 | % | 96.2 | % | 1.8 | % | 21,237 | 20,632 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Phoenix | 6,925 | 1,455 | 1,371 | 6.1 | % | 98.4 | % | 96.8 | % | 1.6 | % | 30,607 | 28,911 | 5.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 2,400 | 1,701 | 1,618 | 5.1 | % | 98.6 | % | 96.8 | % | 1.8 | % | 11,983 | 11,686 | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver | 1,755 | 2,063 | 1,993 | 3.5 | % | 98.2 | % | 94.8 | % | 3.4 | % | 10,874 | 10,376 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Western US Subtotal | 25,663 | 2,054 | 1,966 | 4.5 | % | 98.4 | % | 96.2 | % | 2.2 | % | 154,222 | 149,913 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Florida | 7,877 | 2,247 | 2,214 | 1.5 | % | 96.6 | % | 95.0 | % | 1.6 | % | 51,379 | 50,859 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Tampa | 7,667 | 1,721 | 1,681 | 2.4 | % | 97.6 | % | 95.5 | % | 2.1 | % | 39,292 | 38,393 | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Orlando | 5,453 | 1,710 | 1,658 | 3.1 | % | 97.3 | % | 96.0 | % | 1.3 | % | 27,851 | 27,156 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 1,836 | 1,734 | 1,682 | 3.1 | % | 97.3 | % | 96.1 | % | 1.2 | % | 9,538 | 9,281 | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida Subtotal | 22,833 | 1,900 | 1,859 | 2.2 | % | 97.2 | % | 95.5 | % | 1.7 | % | 128,060 | 125,689 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 11,402 | 1,562 | 1,516 | 3.0 | % | 97.8 | % | 95.9 | % | 1.9 | % | 52,669 | 51,240 | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Carolinas | 4,455 | 1,629 | 1,592 | 2.3 | % | 98.2 | % | 96.4 | % | 1.8 | % | 21,757 | 21,256 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast US Subtotal | 15,857 | 1,581 | 1,538 | 2.8 | % | 97.9 | % | 96.0 | % | 1.9 | % | 74,426 | 72,496 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Houston | 1,861 | 1,589 | 1,562 | 1.7 | % | 97.0 | % | 95.2 | % | 1.8 | % | 8,820 | 8,588 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Dallas | 1,922 | 1,843 | 1,802 | 2.3 | % | 97.6 | % | 95.2 | % | 2.4 | % | 10,584 | 10,219 | 3.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas Subtotal | 3,783 | 1,718 | 1,684 | 2.0 | % | 97.3 | % | 95.2 | % | 2.1 | % | 19,404 | 18,807 | 3.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 2,549 | 2,023 | 1,996 | 1.4 | % | 98.2 | % | 97.1 | % | 1.1 | % | 14,870 | 14,962 | (0.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Minneapolis | 1,125 | 1,951 | 1,887 | 3.4 | % | 98.1 | % | 97.2 | % | 0.9 | % | 6,546 | 6,354 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest US Subtotal | 3,674 | 2,001 | 1,963 | 1.9 | % | 98.1 | % | 97.2 | % | 0.9 | % | 21,416 | 21,316 | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Same Store Total / Average | 71,810 | $ | 1,881 | $ | 1,823 | 3.2 | % | 97.8 | % | 95.9 | % | 1.9 | % | $ | 397,528 | $ | 388,221 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 20
Supplemental Schedule 5(a) (Continued)
| Same Store Core Revenue Growth Summary — Sequential Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands, except avg. monthly rent) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avg. Monthly Rent | Average Occupancy | Core Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Seq, Q3 2020 | # Homes | Q3 2020 | Q2 2020 | Change | Q3 2020 | Q2 2020 | Change | Q3 2020 | Q2 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southern California | 7,633 | $ | 2,537 | $ | 2,519 | 0.7 | % | 98.5 | % | 98.1 | % | 0.4 | % | $ | 55,052 | $ | 55,229 | (0.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Northern California | 3,810 | 2,198 | 2,185 | 0.6 | % | 98.7 | % | 98.2 | % | 0.5 | % | 24,469 | 24,485 | (0.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Seattle | 3,140 | 2,294 | 2,297 | (0.1) | % | 98.0 | % | 97.7 | % | 0.3 | % | 21,237 | 21,364 | (0.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Phoenix | 6,925 | 1,455 | 1,436 | 1.3 | % | 98.4 | % | 98.1 | % | 0.3 | % | 30,607 | 30,078 | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 2,400 | 1,701 | 1,679 | 1.3 | % | 98.6 | % | 97.7 | % | 0.9 | % | 11,983 | 11,864 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver | 1,755 | 2,063 | 2,044 | 0.9 | % | 98.2 | % | 97.7 | % | 0.5 | % | 10,874 | 10,674 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Western US Subtotal | 25,663 | 2,054 | 2,039 | 0.7 | % | 98.4 | % | 98.0 | % | 0.4 | % | 154,222 | 153,694 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Florida | 7,877 | 2,247 | 2,236 | 0.5 | % | 96.6 | % | 96.6 | % | — | % | 51,379 | 50,909 | 0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Tampa | 7,667 | 1,721 | 1,710 | 0.6 | % | 97.6 | % | 97.1 | % | 0.5 | % | 39,292 | 38,741 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Orlando | 5,453 | 1,710 | 1,695 | 0.9 | % | 97.3 | % | 97.2 | % | 0.1 | % | 27,851 | 27,405 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 1,836 | 1,734 | 1,723 | 0.6 | % | 97.3 | % | 96.8 | % | 0.5 | % | 9,538 | 9,357 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida Subtotal | 22,833 | 1,900 | 1,888 | 0.6 | % | 97.2 | % | 96.9 | % | 0.3 | % | 128,060 | 126,412 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 11,402 | 1,562 | 1,550 | 0.8 | % | 97.8 | % | 97.4 | % | 0.4 | % | 52,669 | 51,741 | 1.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Carolinas | 4,455 | 1,629 | 1,619 | 0.6 | % | 98.2 | % | 97.7 | % | 0.5 | % | 21,757 | 21,420 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast US Subtotal | 15,857 | 1,581 | 1,569 | 0.8 | % | 97.9 | % | 97.5 | % | 0.4 | % | 74,426 | 73,161 | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Houston | 1,861 | 1,589 | 1,583 | 0.4 | % | 97.0 | % | 96.8 | % | 0.2 | % | 8,820 | 8,720 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Dallas | 1,922 | 1,843 | 1,831 | 0.7 | % | 97.6 | % | 96.7 | % | 0.9 | % | 10,584 | 10,368 | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas Subtotal | 3,783 | 1,718 | 1,709 | 0.5 | % | 97.3 | % | 96.8 | % | 0.5 | % | 19,404 | 19,088 | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 2,549 | 2,023 | 2,017 | 0.3 | % | 98.2 | % | 97.7 | % | 0.5 | % | 14,870 | 14,807 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Minneapolis | 1,125 | 1,951 | 1,933 | 0.9 | % | 98.1 | % | 97.6 | % | 0.5 | % | 6,546 | 6,441 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest US Subtotal | 3,674 | 2,001 | 1,991 | 0.5 | % | 98.1 | % | 97.7 | % | 0.4 | % | 21,416 | 21,248 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Same Store Total / Average | 71,810 | $ | 1,881 | $ | 1,868 | 0.7 | % | 97.8 | % | 97.5 | % | 0.3 | % | $ | 397,528 | $ | 393,603 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 21
Supplemental Schedule 5(a) (Continued)
| Same Store Core Revenue Growth Summary — YoY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands, except avg. monthly rent) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Avg. Monthly Rent | Average Occupancy | Core Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| YoY, YTD 2020 | # Homes | YTD 2020 | YTD 2019 | Change | YTD 2020 | YTD 2019 | Change | YTD 2020 | YTD 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southern California | 7,633 | $ | 2,515 | $ | 2,405 | 4.6 | % | 97.9 | % | 96.3 | % | 1.6 | % | $ | 166,399 | $ | 161,371 | 3.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Northern California | 3,810 | 2,178 | 2,064 | 5.5 | % | 98.2 | % | 97.3 | % | 0.9 | % | 73,540 | 70,499 | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Seattle | 3,140 | 2,287 | 2,180 | 4.9 | % | 97.5 | % | 96.7 | % | 0.8 | % | 63,871 | 61,163 | 4.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Phoenix | 6,925 | 1,434 | 1,348 | 6.4 | % | 98.0 | % | 97.1 | % | 0.9 | % | 90,778 | 85,711 | 5.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 2,400 | 1,679 | 1,594 | 5.3 | % | 98.0 | % | 97.2 | % | 0.8 | % | 35,905 | 34,702 | 3.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver | 1,755 | 2,042 | 1,962 | 4.1 | % | 97.7 | % | 95.9 | % | 1.8 | % | 32,287 | 30,898 | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Western US Subtotal | 25,663 | 2,035 | 1,934 | 5.2 | % | 97.9 | % | 96.8 | % | 1.1 | % | 462,780 | 444,344 | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Florida | 7,877 | 2,236 | 2,202 | 1.5 | % | 96.5 | % | 95.4 | % | 1.1 | % | 154,241 | 152,240 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Tampa | 7,667 | 1,710 | 1,668 | 2.5 | % | 97.0 | % | 95.9 | % | 1.1 | % | 117,242 | 114,540 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Orlando | 5,453 | 1,695 | 1,638 | 3.5 | % | 97.0 | % | 96.4 | % | 0.6 | % | 82,938 | 80,619 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 1,836 | 1,721 | 1,664 | 3.4 | % | 96.9 | % | 96.0 | % | 0.9 | % | 28,329 | 27,516 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida Subtotal | 22,833 | 1,888 | 1,844 | 2.4 | % | 96.8 | % | 95.9 | % | 0.9 | % | 382,750 | 374,915 | 2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 11,402 | 1,550 | 1,500 | 3.3 | % | 97.1 | % | 96.1 | % | 1.0 | % | 156,416 | 152,163 | 2.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Carolinas | 4,455 | 1,619 | 1,578 | 2.6 | % | 97.6 | % | 96.3 | % | 1.3 | % | 64,712 | 63,063 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast US Subtotal | 15,857 | 1,569 | 1,522 | 3.1 | % | 97.3 | % | 96.1 | % | 1.2 | % | 221,128 | 215,226 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Houston | 1,861 | 1,581 | 1,552 | 1.9 | % | 96.6 | % | 96.2 | % | 0.4 | % | 26,242 | 25,807 | 1.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Dallas | 1,922 | 1,832 | 1,785 | 2.6 | % | 96.6 | % | 95.5 | % | 1.1 | % | 31,395 | 30,451 | 3.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas Subtotal | 3,783 | 1,709 | 1,670 | 2.3 | % | 96.6 | % | 95.9 | % | 0.7 | % | 57,637 | 56,258 | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 2,549 | 2,016 | 1,985 | 1.6 | % | 97.6 | % | 97.1 | % | 0.5 | % | 44,775 | 44,605 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Minneapolis | 1,125 | 1,932 | 1,871 | 3.3 | % | 97.2 | % | 97.0 | % | 0.2 | % | 19,360 | 18,875 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest US Subtotal | 3,674 | 1,990 | 1,950 | 2.1 | % | 97.5 | % | 97.1 | % | 0.4 | % | 64,135 | 63,480 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Same Store Total / Average | 71,810 | $ | 1,866 | $ | 1,802 | 3.6 | % | 97.3 | % | 96.3 | % | 1.0 | % | $ | 1,188,430 | $ | 1,154,223 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 22
Supplemental Schedule 5(b)
| Same Store NOI Growth and Margin Summary — YoY Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core Revenue | Core Operating Expenses | Net Operating Income | Core NOI Margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| YoY, Q3 2020 | Q3 2020 | Q3 2019 | Change | Q3 2020 | Q3 2019 | Change | Q3 2020 | Q3 2019 | Change | Q3 2020 | Q3 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southern California | $ | 55,052 | $ | 54,441 | 1.1 | % | $ | 18,713 | $ | 17,944 | 4.3 | % | $ | 36,339 | $ | 36,497 | (0.4) | % | 66.0 | % | 67.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Northern California | 24,469 | 23,867 | 2.5 | % | 7,228 | 8,109 | (10.9) | % | 17,241 | 15,758 | 9.4 | % | 70.5 | % | 66.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Seattle | 21,237 | 20,632 | 2.9 | % | 5,947 | 5,593 | 6.3 | % | 15,290 | 15,039 | 1.7 | % | 72.0 | % | 72.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Phoenix | 30,607 | 28,911 | 5.9 | % | 7,619 | 7,893 | (3.5) | % | 22,988 | 21,018 | 9.4 | % | 75.1 | % | 72.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 11,983 | 11,686 | 2.5 | % | 3,082 | 3,086 | (0.1) | % | 8,901 | 8,600 | 3.5 | % | 74.3 | % | 73.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver | 10,874 | 10,376 | 4.8 | % | 2,490 | 2,575 | (3.3) | % | 8,384 | 7,801 | 7.5 | % | 77.1 | % | 75.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western US Subtotal | 154,222 | 149,913 | 2.9 | % | 45,079 | 45,200 | (0.3) | % | 109,143 | 104,713 | 4.2 | % | 70.8 | % | 69.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Florida | 51,379 | 50,859 | 1.0 | % | 23,272 | 22,774 | 2.2 | % | 28,107 | 28,085 | 0.1 | % | 54.7 | % | 55.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tampa | 39,292 | 38,393 | 2.3 | % | 16,122 | 16,676 | (3.3) | % | 23,170 | 21,717 | 6.7 | % | 59.0 | % | 56.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Orlando | 27,851 | 27,156 | 2.6 | % | 10,875 | 10,426 | 4.3 | % | 16,976 | 16,730 | 1.5 | % | 61.0 | % | 61.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 9,538 | 9,281 | 2.8 | % | 3,674 | 3,404 | 7.9 | % | 5,864 | 5,877 | (0.2) | % | 61.5 | % | 63.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida Subtotal | 128,060 | 125,689 | 1.9 | % | 53,943 | 53,280 | 1.2 | % | 74,117 | 72,409 | 2.4 | % | 57.9 | % | 57.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 52,669 | 51,240 | 2.8 | % | 17,659 | 17,855 | (1.1) | % | 35,010 | 33,385 | 4.9 | % | 66.5 | % | 65.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carolinas | 21,757 | 21,256 | 2.4 | % | 6,569 | 6,706 | (2.0) | % | 15,188 | 14,550 | 4.4 | % | 69.8 | % | 68.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast US Subtotal | 74,426 | 72,496 | 2.7 | % | 24,228 | 24,561 | (1.4) | % | 50,198 | 47,935 | 4.7 | % | 67.4 | % | 66.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Houston | 8,820 | 8,588 | 2.7 | % | 4,342 | 4,230 | 2.6 | % | 4,478 | 4,358 | 2.8 | % | 50.8 | % | 50.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dallas | 10,584 | 10,219 | 3.6 | % | 4,607 | 4,623 | (0.3) | % | 5,977 | 5,596 | 6.8 | % | 56.5 | % | 54.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas Subtotal | 19,404 | 18,807 | 3.2 | % | 8,949 | 8,853 | 1.1 | % | 10,455 | 9,954 | 5.0 | % | 53.9 | % | 52.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 14,870 | 14,962 | (0.6) | % | 6,704 | 6,626 | 1.2 | % | 8,166 | 8,336 | (2.0) | % | 54.9 | % | 55.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Minneapolis | 6,546 | 6,354 | 3.0 | % | 2,330 | 2,214 | 5.2 | % | 4,216 | 4,140 | 1.8 | % | 64.4 | % | 65.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest US Subtotal | 21,416 | 21,316 | 0.5 | % | 9,034 | 8,840 | 2.2 | % | 12,382 | 12,476 | (0.8) | % | 57.8 | % | 58.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Same Store Total / Average | $ | 397,528 | $ | 388,221 | 2.4 | % | $ | 141,233 | $ | 140,734 | 0.4 | % | $ | 256,295 | $ | 247,487 | 3.6 | % | 64.5 | % | 63.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 23
Supplemental Schedule 5(b) (Continued)
| Same Store NOI Growth and Margin Summary — Sequential Quarter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core Revenue | Core Operating Expenses | Net Operating Income | Core NOI Margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Seq, Q3 2020 | Q3 2020 | Q2 2020 | Change | Q3 2020 | Q2 2020 | Change | Q3 2020 | Q2 2020 | Change | Q3 2020 | Q2 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southern California | $ | 55,052 | $ | 55,229 | (0.3) | % | $ | 18,713 | $ | 18,169 | 3.0 | % | $ | 36,339 | $ | 37,060 | (1.9) | % | 66.0 | % | 67.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Northern California | 24,469 | 24,485 | (0.1) | % | 7,228 | 7,073 | 2.2 | % | 17,241 | 17,412 | (1.0) | % | 70.5 | % | 71.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Seattle | 21,237 | 21,364 | (0.6) | % | 5,947 | 6,006 | (1.0) | % | 15,290 | 15,358 | (0.4) | % | 72.0 | % | 71.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Phoenix | 30,607 | 30,078 | 1.8 | % | 7,619 | 6,896 | 10.5 | % | 22,988 | 23,182 | (0.8) | % | 75.1 | % | 77.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 11,983 | 11,864 | 1.0 | % | 3,082 | 2,703 | 14.0 | % | 8,901 | 9,161 | (2.8) | % | 74.3 | % | 77.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver | 10,874 | 10,674 | 1.9 | % | 2,490 | 2,426 | 2.6 | % | 8,384 | 8,248 | 1.6 | % | 77.1 | % | 77.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western US Subtotal | 154,222 | 153,694 | 0.3 | % | 45,079 | 43,273 | 4.2 | % | 109,143 | 110,421 | (1.2) | % | 70.8 | % | 71.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Florida | 51,379 | 50,909 | 0.9 | % | 23,272 | 21,855 | 6.5 | % | 28,107 | 29,054 | (3.3) | % | 54.7 | % | 57.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tampa | 39,292 | 38,741 | 1.4 | % | 16,122 | 15,115 | 6.7 | % | 23,170 | 23,626 | (1.9) | % | 59.0 | % | 61.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Orlando | 27,851 | 27,405 | 1.6 | % | 10,875 | 10,085 | 7.8 | % | 16,976 | 17,320 | (2.0) | % | 61.0 | % | 63.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 9,538 | 9,357 | 1.9 | % | 3,674 | 3,356 | 9.5 | % | 5,864 | 6,001 | (2.3) | % | 61.5 | % | 64.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida Subtotal | 128,060 | 126,412 | 1.3 | % | 53,943 | 50,411 | 7.0 | % | 74,117 | 76,001 | (2.5) | % | 57.9 | % | 60.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 52,669 | 51,741 | 1.8 | % | 17,659 | 16,558 | 6.6 | % | 35,010 | 35,183 | (0.5) | % | 66.5 | % | 68.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carolinas | 21,757 | 21,420 | 1.6 | % | 6,569 | 5,956 | 10.3 | % | 15,188 | 15,464 | (1.8) | % | 69.8 | % | 72.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast US Subtotal | 74,426 | 73,161 | 1.7 | % | 24,228 | 22,514 | 7.6 | % | 50,198 | 50,647 | (0.9) | % | 67.4 | % | 69.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Houston | 8,820 | 8,720 | 1.1 | % | 4,342 | 4,118 | 5.4 | % | 4,478 | 4,602 | (2.7) | % | 50.8 | % | 52.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dallas | 10,584 | 10,368 | 2.1 | % | 4,607 | 4,312 | 6.8 | % | 5,977 | 6,056 | (1.3) | % | 56.5 | % | 58.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas Subtotal | 19,404 | 19,088 | 1.7 | % | 8,949 | 8,430 | 6.2 | % | 10,455 | 10,658 | (1.9) | % | 53.9 | % | 55.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 14,870 | 14,807 | 0.4 | % | 6,704 | 6,912 | (3.0) | % | 8,166 | 7,895 | 3.4 | % | 54.9 | % | 53.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Minneapolis | 6,546 | 6,441 | 1.6 | % | 2,330 | 2,060 | 13.1 | % | 4,216 | 4,381 | (3.8) | % | 64.4 | % | 68.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest US Subtotal | 21,416 | 21,248 | 0.8 | % | 9,034 | 8,972 | 0.7 | % | 12,382 | 12,276 | 0.9 | % | 57.8 | % | 57.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Same Store Total / Average | $ | 397,528 | $ | 393,603 | 1.0 | % | $ | 141,233 | $ | 133,600 | 5.7 | % | $ | 256,295 | $ | 260,003 | (1.4) | % | 64.5 | % | 66.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 24
Supplemental Schedule 5(b) (Continued)
| Same Store NOI Growth and Margin Summary — YoY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Core Revenue | Core Operating Expenses | Net Operating Income | Core NOI Margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| YoY, YTD 2020 | YTD 2020 | YTD 2019 | Change | YTD 2020 | YTD 2019 | Change | YTD 2020 | YTD 2019 | Change | YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southern California | $ | 166,399 | $ | 161,371 | 3.1 | % | $ | 54,425 | $ | 51,615 | 5.4 | % | $ | 111,974 | $ | 109,756 | 2.0 | % | 67.3 | % | 68.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
| Northern California | 73,540 | 70,499 | 4.3 | % | 21,411 | 22,998 | (6.9) | % | 52,129 | 47,501 | 9.7 | % | 70.9 | % | 67.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Seattle | 63,871 | 61,163 | 4.4 | % | 17,604 | 16,264 | 8.2 | % | 46,267 | 44,899 | 3.0 | % | 72.4 | % | 73.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Phoenix | 90,778 | 85,711 | 5.9 | % | 22,102 | 22,178 | (0.3) | % | 68,676 | 63,533 | 8.1 | % | 75.7 | % | 74.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Las Vegas | 35,905 | 34,702 | 3.5 | % | 8,591 | 8,591 | — | % | 27,314 | 26,111 | 4.6 | % | 76.1 | % | 75.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Denver | 32,287 | 30,898 | 4.5 | % | 6,963 | 6,883 | 1.2 | % | 25,324 | 24,015 | 5.5 | % | 78.4 | % | 77.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Western US Subtotal | 462,780 | 444,344 | 4.1 | % | 131,096 | 128,529 | 2.0 | % | 331,684 | 315,815 | 5.0 | % | 71.7 | % | 71.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Florida | 154,241 | 152,240 | 1.3 | % | 67,217 | 65,059 | 3.3 | % | 87,024 | 87,181 | (0.2) | % | 56.4 | % | 57.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tampa | 117,242 | 114,540 | 2.4 | % | 46,268 | 46,486 | (0.5) | % | 70,974 | 68,054 | 4.3 | % | 60.5 | % | 59.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Orlando | 82,938 | 80,619 | 2.9 | % | 30,904 | 29,782 | 3.8 | % | 52,034 | 50,837 | 2.4 | % | 62.7 | % | 63.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jacksonville | 28,329 | 27,516 | 3.0 | % | 10,404 | 10,172 | 2.3 | % | 17,925 | 17,344 | 3.3 | % | 63.3 | % | 63.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Florida Subtotal | 382,750 | 374,915 | 2.1 | % | 154,793 | 151,499 | 2.2 | % | 227,957 | 223,416 | 2.0 | % | 59.6 | % | 59.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Atlanta | 156,416 | 152,163 | 2.8 | % | 51,206 | 50,521 | 1.4 | % | 105,210 | 101,642 | 3.5 | % | 67.3 | % | 66.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Carolinas | 64,712 | 63,063 | 2.6 | % | 18,719 | 18,633 | 0.5 | % | 45,993 | 44,430 | 3.5 | % | 71.1 | % | 70.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Southeast US Subtotal | 221,128 | 215,226 | 2.7 | % | 69,925 | 69,154 | 1.1 | % | 151,203 | 146,072 | 3.5 | % | 68.4 | % | 67.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Houston | 26,242 | 25,807 | 1.7 | % | 12,448 | 11,794 | 5.5 | % | 13,794 | 14,013 | (1.6) | % | 52.6 | % | 54.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dallas | 31,395 | 30,451 | 3.1 | % | 13,162 | 12,859 | 2.4 | % | 18,233 | 17,592 | 3.6 | % | 58.1 | % | 57.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas Subtotal | 57,637 | 56,258 | 2.5 | % | 25,610 | 24,653 | 3.9 | % | 32,027 | 31,605 | 1.3 | % | 55.6 | % | 56.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chicago | 44,775 | 44,605 | 0.4 | % | 20,467 | 19,445 | 5.3 | % | 24,308 | 25,160 | (3.4) | % | 54.3 | % | 56.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Minneapolis | 19,360 | 18,875 | 2.6 | % | 6,465 | 6,187 | 4.5 | % | 12,895 | 12,688 | 1.6 | % | 66.6 | % | 67.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest US Subtotal | 64,135 | 63,480 | 1.0 | % | 26,932 | 25,632 | 5.1 | % | 37,203 | 37,848 | (1.7) | % | 58.0 | % | 59.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Same Store Total / Average | $ | 1,188,430 | $ | 1,154,223 | 3.0 | % | $ | 408,356 | $ | 399,467 | 2.2 | % | $ | 780,074 | $ | 754,756 | 3.4 | % | 65.6 | % | 65.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 25
Supplemental Schedule 5(c)
| Same Store Lease-Over-Lease Rent Growth | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| Rental Rate Growth | |||||||||||||||||||||||||||||||||||||||||
| Q3 2020 | YTD 2020 | ||||||||||||||||||||||||||||||||||||||||
| Renewal | New | Blended | Renewal | New | Blended | ||||||||||||||||||||||||||||||||||||
| Leases | Leases | Average | Leases | Leases | Average | ||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||
| Southern California | 4.4 | % | 7.9 | % | 5.3 | % | 4.7 | % | 4.8 | % | 4.7 | % | |||||||||||||||||||||||||||||
| Northern California | 4.1 | % | 8.6 | % | 5.4 | % | 5.0 | % | 7.1 | % | 5.6 | % | |||||||||||||||||||||||||||||
| Seattle | 0.7 | % | 7.4 | % | 3.1 | % | 3.2 | % | 6.0 | % | 4.1 | % | |||||||||||||||||||||||||||||
| Phoenix | 5.0 | % | 10.9 | % | 7.0 | % | 5.3 | % | 9.3 | % | 6.6 | % | |||||||||||||||||||||||||||||
| Las Vegas | 4.4 | % | 8.7 | % | 5.7 | % | 5.3 | % | 6.0 | % | 5.5 | % | |||||||||||||||||||||||||||||
| Denver | 4.0 | % | 6.9 | % | 4.8 | % | 4.1 | % | 4.5 | % | 4.2 | % | |||||||||||||||||||||||||||||
| Western US Subtotal | 3.9 | % | 8.6 | % | 5.4 | % | 4.6 | % | 6.4 | % | 5.2 | % | |||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||
| South Florida | 2.6 | % | 1.8 | % | 2.3 | % | 2.7 | % | (0.2) | % | 1.8 | % | |||||||||||||||||||||||||||||
| Tampa | 2.8 | % | 4.8 | % | 3.6 | % | 3.2 | % | 2.1 | % | 2.8 | % | |||||||||||||||||||||||||||||
| Orlando | 3.1 | % | 5.9 | % | 4.2 | % | 3.2 | % | 3.5 | % | 3.3 | % | |||||||||||||||||||||||||||||
| Jacksonville | 2.7 | % | 5.2 | % | 4.0 | % | 2.9 | % | 3.4 | % | 3.1 | % | |||||||||||||||||||||||||||||
| Florida Subtotal | 2.8 | % | 4.0 | % | 3.3 | % | 3.0 | % | 1.7 | % | 2.5 | % | |||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||
| Atlanta | 3.3 | % | 5.8 | % | 4.1 | % | 3.5 | % | 3.3 | % | 3.4 | % | |||||||||||||||||||||||||||||
| Carolinas | 2.5 | % | 5.4 | % | 3.5 | % | 2.8 | % | 2.7 | % | 2.8 | % | |||||||||||||||||||||||||||||
| Southeast US Subtotal | 3.0 | % | 5.7 | % | 3.9 | % | 3.3 | % | 3.1 | % | 3.3 | % | |||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||
| Houston | 2.5 | % | 2.7 | % | 2.6 | % | 2.8 | % | 0.1 | % | 2.1 | % | |||||||||||||||||||||||||||||
| Dallas | 3.3 | % | 3.7 | % | 3.5 | % | 3.5 | % | 1.0 | % | 2.6 | % | |||||||||||||||||||||||||||||
| Texas Subtotal | 2.9 | % | 3.3 | % | 3.0 | % | 3.2 | % | 0.7 | % | 2.3 | % | |||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||
| Chicago | 1.9 | % | (2.3) | % | 0.6 | % | 2.2 | % | (1.5) | % | 1.3 | % | |||||||||||||||||||||||||||||
| Minneapolis | 4.0 | % | 2.7 | % | 3.6 | % | 4.0 | % | 2.7 | % | 3.6 | % | |||||||||||||||||||||||||||||
| Midwest US Subtotal | 2.5 | % | (0.7) | % | 1.4 | % | 2.8 | % | — | % | 2.0 | % | |||||||||||||||||||||||||||||
| Same Store Total / Average | 3.3 | % | 5.5 | % | 4.0 | % | 3.7 | % | 3.4 | % | 3.6 | % | |||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 26
Supplemental Schedule 6
| Same Store Cost to Maintain | ||||||||||||||||||||||||||||||||||||||
($ in thousands, except per home amounts) (unaudited) | ||||||||||||||||||||||||||||||||||||||
| Total ($ 000) | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | |||||||||||||||||||||||||||||||||
| Recurring operating expenses (gross): | ||||||||||||||||||||||||||||||||||||||
| R&M OpEx | $ | 26,142 | $ | 20,279 | $ | 19,891 | $ | 20,214 | $ | 24,975 | ||||||||||||||||||||||||||||
| Turn OpEx | 10,922 | 9,585 | 9,937 | 10,064 | 13,600 | |||||||||||||||||||||||||||||||||
| Total recurring operating expense (gross) | 37,064 | 29,864 | 29,828 | 30,278 | 38,575 | |||||||||||||||||||||||||||||||||
| R&M + Turn recoveries | (3,573) | (3,295) | (3,000) | (2,564) | (3,260) | |||||||||||||||||||||||||||||||||
| Total recurring operating expenses (net) | $ | 33,491 | $ | 26,569 | $ | 26,828 | $ | 27,714 | $ | 35,315 | ||||||||||||||||||||||||||||
| Recurring capital expenditures: | ||||||||||||||||||||||||||||||||||||||
| R&M CapEx | $ | 24,063 | $ | 19,382 | $ | 18,356 | $ | 17,208 | $ | 24,322 | ||||||||||||||||||||||||||||
| Turn CapEx | 6,908 | 6,243 | 6,034 | 6,321 | 9,428 | |||||||||||||||||||||||||||||||||
| Total recurring capital expenditures | $ | 30,971 | $ | 25,625 | $ | 24,390 | $ | 23,529 | $ | 33,750 | ||||||||||||||||||||||||||||
| Cost to maintain (gross): | ||||||||||||||||||||||||||||||||||||||
| R&M OpEx + CapEx | $ | 50,205 | $ | 39,661 | $ | 38,247 | $ | 37,422 | $ | 49,297 | ||||||||||||||||||||||||||||
| Turn OpEx + CapEx | 17,830 | 15,828 | 15,971 | 16,385 | 23,028 | |||||||||||||||||||||||||||||||||
| Total cost to maintain (gross) | 68,035 | 55,489 | 54,218 | 53,807 | 72,325 | |||||||||||||||||||||||||||||||||
| R&M + Turn recoveries | (3,573) | (3,295) | (3,000) | (2,564) | (3,260) | |||||||||||||||||||||||||||||||||
| Total cost to maintain (net) | $ | 64,462 | $ | 52,194 | $ | 51,218 | $ | 51,243 | $ | 69,065 | ||||||||||||||||||||||||||||
| Per Home ($) | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | |||||||||||||||||||||||||||||||||
| Total cost to maintain (gross) | $ | 947 | $ | 773 | $ | 755 | $ | 750 | $ | 1,007 | ||||||||||||||||||||||||||||
| R&M + Turn recoveries | (49) | (46) | (42) | (36) | (45) | |||||||||||||||||||||||||||||||||
| Total cost to maintain (net) | $ | 898 | $ | 727 | $ | 713 | $ | 714 | $ | 962 | ||||||||||||||||||||||||||||
| Total Portfolio Capital Expenditure Detail | |||||||||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| Total ($ 000) | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | ||||||||||||||||||||||||||||||
| Recurring CapEx | $ | 33,861 | $ | 27,617 | $ | 25,988 | $ | 25,425 | $ | 36,653 | |||||||||||||||||||||||||
| Value Enhancing CapEx | 10,286 | 10,611 | 10,165 | 13,358 | 12,256 | ||||||||||||||||||||||||||||||
| Initial Renovation CapEx | 13,385 | 21,023 | 30,149 | 30,078 | 15,804 | ||||||||||||||||||||||||||||||
| Disposition CapEx | 1,748 | 2,877 | 3,706 | 3,129 | 2,165 | ||||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 59,280 | $ | 62,128 | $ | 70,008 | $ | 71,990 | $ | 66,878 | |||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 27
Supplemental Schedule 7
| Adjusted Property Management and G&A Reconciliation | |||||||||||||||||||||||||||||
| ($ in thousands) (unaudited) | |||||||||||||||||||||||||||||
| Adjusted Property Management Expense | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||
| Property management expense (GAAP) | $ | 14,824 | $ | 15,872 | $ | 43,725 | $ | 47,053 | |||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
Share-based compensation expense (1) | (1,253) | (807) | (2,533) | (2,314) | |||||||||||||||||||||||||
Adjusted property management expense | $ | 13,571 | $ | 15,065 | $ | 41,192 | $ | 44,739 | |||||||||||||||||||||
| Adjusted G&A Expense | Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | |||||||||||||||||||||||||
| G&A expense (GAAP) | $ | 17,972 | $ | 16,405 | $ | 46,626 | $ | 58,899 | |||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
Share-based compensation expense (2) | (4,833) | (3,818) | (9,760) | (11,533) | |||||||||||||||||||||||||
| Merger and transaction-related expenses | — | — | — | (4,347) | |||||||||||||||||||||||||
| Severance expense | (133) | (881) | (388) | (8,225) | |||||||||||||||||||||||||
Adjusted G&A expense | $ | 13,006 | $ | 11,706 | $ | 36,478 | $ | 34,794 | |||||||||||||||||||||
(1)For YTD 2019, includes $136 related to IPO and pre-IPO grants.
(2)For Q3 2019, includes $78 related to merger grants. For YTD 2019, includes $360 related to IPO and pre-IPO grants and $2,227 related to merger grants.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 28
Supplemental Schedule 8
| Acquisitions and Dispositions — Q3 2020 | |||||||||||||||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||||||||||||||
| 6/30/2020 | Q3 2020 Acquisitions (1) | Q3 2020 Dispositions (2) | 9/30/2020 | ||||||||||||||||||||||||||||||||||||||
| Homes | Homes | Avg. Estimated | Homes | Average | Homes | ||||||||||||||||||||||||||||||||||||
| Owned | Acq. | Cost Basis | Sold | Sales Price | Owned | ||||||||||||||||||||||||||||||||||||
| Western United States: | |||||||||||||||||||||||||||||||||||||||||
| Southern California | 8,000 | — | $ | — | 27 | $ | 460,355 | 7,973 | |||||||||||||||||||||||||||||||||
| Northern California | 4,301 | — | — | 35 | 394,357 | 4,266 | |||||||||||||||||||||||||||||||||||
| Seattle | 3,555 | 57 | 457,613 | 8 | 429,494 | 3,604 | |||||||||||||||||||||||||||||||||||
| Phoenix | 7,861 | 148 | 345,787 | 23 | 222,626 | 7,986 | |||||||||||||||||||||||||||||||||||
| Las Vegas | 3,003 | — | — | 10 | 339,082 | 2,993 | |||||||||||||||||||||||||||||||||||
| Denver | 2,298 | 29 | 426,998 | 10 | 353,710 | 2,317 | |||||||||||||||||||||||||||||||||||
| Western US Subtotal | 29,018 | 234 | 383,091 | 113 | 369,171 | 29,139 | |||||||||||||||||||||||||||||||||||
| Florida: | |||||||||||||||||||||||||||||||||||||||||
| South Florida | 8,454 | 4 | 257,864 | 71 | 295,801 | 8,387 | |||||||||||||||||||||||||||||||||||
| Tampa | 8,107 | 12 | 295,050 | 32 | 236,777 | 8,087 | |||||||||||||||||||||||||||||||||||
| Orlando | 6,147 | 41 | 309,641 | 23 | 208,674 | 6,165 | |||||||||||||||||||||||||||||||||||
| Jacksonville | 1,858 | — | — | 1 | 350,000 | 1,857 | |||||||||||||||||||||||||||||||||||
| Florida Subtotal | 24,566 | 57 | 302,936 | 127 | 265,577 | 24,496 | |||||||||||||||||||||||||||||||||||
| Southeast United States: | |||||||||||||||||||||||||||||||||||||||||
| Atlanta | 12,501 | 54 | 270,690 | 45 | 191,553 | 12,510 | |||||||||||||||||||||||||||||||||||
| Carolinas | 4,719 | 118 | 269,471 | 11 | 251,036 | 4,826 | |||||||||||||||||||||||||||||||||||
| Southeast US Subtotal | 17,220 | 172 | 269,854 | 56 | 203,237 | 17,336 | |||||||||||||||||||||||||||||||||||
| Texas: | |||||||||||||||||||||||||||||||||||||||||
| Houston | 2,190 | — | — | 24 | 182,967 | 2,166 | |||||||||||||||||||||||||||||||||||
| Dallas | 2,376 | 81 | 263,341 | 13 | 228,062 | 2,444 | |||||||||||||||||||||||||||||||||||
| Texas: Subtotal | 4,566 | 81 | 263,341 | 37 | 198,811 | 4,610 | |||||||||||||||||||||||||||||||||||
| Midwest United States: | |||||||||||||||||||||||||||||||||||||||||
| Chicago | 2,699 | — | — | 35 | 252,556 | 2,664 | |||||||||||||||||||||||||||||||||||
| Minneapolis | 1,129 | — | — | 2 | 242,900 | 1,127 | |||||||||||||||||||||||||||||||||||
| Midwest US Subtotal | 3,828 | — | — | 37 | 252,034 | 3,791 | |||||||||||||||||||||||||||||||||||
| Announced Market-in-Exit: | |||||||||||||||||||||||||||||||||||||||||
Nashville (3) | 58 | — | — | 33 | 340,658 | 25 | |||||||||||||||||||||||||||||||||||
| Total / Average | 79,256 | 544 | $ | 321,059 | 403 | $ | 284,736 | 79,397 | |||||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 29
(1)Estimated stabilized cap rates on acquisitions during the quarter averaged 5.5%. Stabilized cap rate represents forecast nominal NOI for the 12 months following stabilization, divided by estimated cost basis.
(2)Cap rates on dispositions during the quarter averaged 2.0%. Disposition cap rate represents actual NOI recognized in the 12 months prior to the month of disposition, divided by sales price.
(3)In December 2019, Invitation Homes announced a plan to fully exit the Nashville market, and sold 708 homes in Nashville in a bulk transaction. The Company is pursuing the sale of the remaining 25 homes in the market as of September 30, 2020.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 30
Glossary and Reconciliations
Glossary:
Average Estimated Cost Basis
Average estimated cost basis on acquisition represents the sum of purchase price, any closing adjustments, and estimated initial renovation expenditure for an acquired home or population of homes.
Average Monthly Rent
Average monthly rent represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period, and reflects the impact of non-service rental concessions and contractual rent increases amortized over the life of the lease.
Average Occupancy
Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period.
Core NOI Margin
Core NOI margin for an identified population of homes is calculated by dividing NOI by Core revenues attributable to such population.
Core Operating Expenses
Core operating expenses for an identified population of homes reflect property operating and maintenance expenses, excluding any expenses recovered from residents.
Core Revenues
Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries.
Cost to Maintain
Cost to maintain a home represents the sum of the expensed and capitalized portions of recurring repairs & maintenance and turn spend (gross or net of resident reimbursements, as indicated in tables presented), not including the internal labor associated with such work.
Disposition CapEx
Disposition CapEx represents expenditures related to the preparation of a home for disposition after the prior tenant has moved out of the home.
EBITDA, EBITDAre, and Adjusted EBITDAre
EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; and depreciation and amortization. National Association of Real Estate Investment Trusts ("Nareit") recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. We define EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax and impairment on depreciated real estate investments. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; merger and transaction-related expenses; severance; casualty losses, net; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of our financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 31
The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of 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 EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. See "Reconciliation of Non-GAAP Measures" below for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.
Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)
FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated partnerships and joint ventures. In calculating per share amounts, Core FFO and AFFO reflect convertible debt securities in the form in which they were outstanding during the period.
We believe that FFO is a meaningful supplemental measure of the operating performance of our business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss.
The 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. Accordingly, there can be no assurance that our basis for computing this non-GAAP measures is comparable with that of other companies. See Supplemental Schedule 1 for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.
Initial Renovation CapEx
Initial renovation CapEx represents expenditures related to the first post-acquisition renovation of a home to bring the home to Invitation Homes standards and specifications.
Net Operating Income (NOI)
NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. We define NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs, and marketing expense). NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; impairment and other; gain on sale of property, net of tax; and other income and expenses.
The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other companies.
We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting NOI for homes in our Same Store portfolio.
See "Reconciliation of Non-GAAP Measures" below for a reconciliation of GAAP net income to NOI for our total portfolio and NOI for our Same Store portfolio.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 32
PSF
PSF means per square foot.
Recurring Capital Expenditures or Recurring CapEx
Recurring Capital Expenditures or Recurring CapEx represents general replacements and expenditures required to preserve and maintain the value and functionality of a home and its systems as a single-family rental.
Rental Rate Growth
Rental rate growth for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease, and, in each case, reflects the impact of any amortized non-service rent concessions and amortized contractual rent increases. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home.
Revenue Collections as a Percentage of Month's Billings
Revenue collections as a percentage of month's billings represents the total cash received in a given monthly period for rental revenues and other property income (including receipt of late payments that were billed in prior months) divided by the total amounts billed in that period. When a payment plan is in place with a resident, amounts are considered to be billed at the time they would have been billed based on the terms of the original lease, not the terms of the payment plan. "Historical average" revenue collections as a percentage of monthly billings refer to revenue collections as a percentage of monthly billings for each of the months beginning October 2019 and to and including March 2020.
Same Store / Same Store Portfolio
Same Store or Same Store portfolio includes, for a given reporting period, homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio, and homes in markets that the Company has announced an intent to exit where the Company no longer operates a significant number of homes.
Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio may be considered stabilized at the time of acquisition.
Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established.
We believe presenting information about the portion of our portfolio that has been fully operational for the entirety of a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods and about trends in our organic business.
Total Homes / Total Portfolio
Total homes or total portfolio refers to the total number of homes owned, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated.
Turnover Rate
Turnover rate represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 33
Unsecured Facility Covenants
Unsecured facility covenants refer to financial and operating requirements that the Company must meet with respect to its $1,000 million revolving credit facility (the "Revolving Facility") and its $1,500 million term loan facility (the "Term Loan Facility") (together, the "Credit Facility"), as set forth in the Company's Revolving Credit and Term Loan Agreement dated February 6, 2017 (the "Unsecured Credit Agreement"). The metrics provided under the "Unsecured Facility Covenant Compliance" heading on Supplemental Schedule 2(b) show the Company's compliance with certain covenants that the Company believes are its most restrictive financial covenants, including: total leverage ratio, secured leverage ratio, unencumbered leverage ratio, fixed charge coverage ratio, and unencumbered fixed charge coverage ratio.
Total leverage ratio represents (i) total debt (excluding any intercompany debt) less (ii) restricted and unrestricted cash, divided by (iii) the total value of operating real estate assets as determined by indexed broker price opinions.
Secured leverage ratio represents (i) total secured debt (excluding any intercompany debt) less (ii) restricted and unrestricted cash, divided by (iii) the total value of operating real estate assets as determined by indexed broker price opinions.
Unencumbered leverage ratio represents (i) total unsecured debt less (ii) unrestricted cash, divided by the sum of (iii) the total value of unencumbered operating real estate assets as determined by indexed broker price opinions and (iv) a portion of the trapped equity value of encumbered operating real estate assets (subject to limitations outlined in the Unsecured Credit Agreement).
Fixed charge coverage ratio represents (i) annualized NOI for operating properties less cash G&A expense for the most recent quarter, divided by (ii) annual run-rate cash interest expense calculated using outstanding indebtedness and cost of debt (in each case, adjusted for the Company's outstanding interest rate swaps) at the end of the most recent quarter.
Unencumbered fixed charge coverage ratio represents (i) annualized NOI for operating properties less cash G&A expense attributable to unencumbered homes for the most recent quarter, divided by (ii) annual run-rate cash interest expense from unsecured debt, calculated using outstanding unsecured indebtedness and cost of unsecured debt (in each case, adjusted for the Company's outstanding interest rate swaps) at the end of the most recent quarter.
The metrics set forth under the "Unsecured Facility Covenant Compliance" heading on Supplemental Schedule 2(b), and described above, are provided only to show the Company's compliance with these covenants. These metrics should not be used for any other purpose, including without limitation to evaluate the Company's financial condition or results of operations, nor do they indicate the Company's covenant compliance as of any other date or for any other period. These metrics, or components of these metrics described above, may be defined differently in the Unsecured Credit Agreement than similarly named metrics are defined by the Company in its Earnings Release and Supplemental Information for the purposes of evaluating its financial conditions or results of operations. For a more complete and detailed description of the covenants contained in the Company's Unsecured Credit Agreement, see Exhibit 10.3 to the Company’s Current Report on Form 8-K (File No. 1-38004) filed on February 6, 2017.
The breach of any of the covenants set forth in the Unsecured Credit Agreement could result in a default of the Company's indebtedness related to its Revolving Facility and Term Loan Facility, which could cause those obligations to become due and payable. The Company's ability to comply with these covenants may be affected by changes in the Company's operating and financial performance, changes in general business and economic conditions, adverse regulatory developments, or other events adversely impacting it. If any of the Company's indebtedness is accelerated, the Company may not be able to repay it. For risks related to failure to comply with covenants, see Part I. Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, as such factors may be updated from time to time in our periodic filings with the SEC.
Value Enhancing CapEx
Value enhancing CapEx represents re-investment in stabilized homes, above and beyond general replacements to preserve and maintain the value and functionality of a home, for the purpose of enhancing expected risk-adjusted returns.
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 34
Reconciliation of Non-GAAP Measures:
Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, Quarterly | |||||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | |||||||||||||||||||||||||||||||
| Total revenues (total portfolio) | $ | 459,184 | $ | 449,755 | $ | 449,789 | $ | 444,277 | $ | 443,326 | |||||||||||||||||||||||||
| Non-Same Store revenues | (40,054) | (37,665) | (33,973) | (34,958) | (37,421) | ||||||||||||||||||||||||||||||
| Same Store revenues | 419,130 | 412,090 | 415,816 | 409,319 | 405,905 | ||||||||||||||||||||||||||||||
| Same Store resident recoveries | (21,602) | (18,487) | (18,517) | (17,066) | (17,684) | ||||||||||||||||||||||||||||||
| Same Store Core revenues | $ | 397,528 | $ | 393,603 | $ | 397,299 | $ | 392,253 | $ | 388,221 | |||||||||||||||||||||||||
Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, YTD | |||||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||||
| Total revenues (total portfolio) | $ | 1,358,728 | $ | 1,320,408 | |||||||||||||||||||||||||||||||
| Non-Same Store revenues | (111,692) | (116,972) | |||||||||||||||||||||||||||||||||
| Same Store revenues | 1,247,036 | 1,203,436 | |||||||||||||||||||||||||||||||||
| Same Store resident recoveries | (58,606) | (49,213) | |||||||||||||||||||||||||||||||||
| Same Store Core revenues | $ | 1,188,430 | $ | 1,154,223 | |||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 35
| Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating Expenses, Quarterly | |||||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | |||||||||||||||||||||||||||||||
| Property operating and maintenance expenses (total portfolio) | $ | 177,997 | $ | 167,002 | $ | 166,916 | $ | 167,576 | $ | 175,491 | |||||||||||||||||||||||||
| Non-Same Store operating expenses | (15,162) | (14,915) | (14,876) | (15,990) | (17,073) | ||||||||||||||||||||||||||||||
| Same Store operating expenses | 162,835 | 152,087 | 152,040 | 151,586 | 158,418 | ||||||||||||||||||||||||||||||
| Same Store resident recoveries | (21,602) | (18,487) | (18,517) | (17,066) | (17,684) | ||||||||||||||||||||||||||||||
| Same Store Core operating expenses | $ | 141,233 | $ | 133,600 | $ | 133,523 | $ | 134,520 | $ | 140,734 | |||||||||||||||||||||||||
| Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating Expenses, YTD | |||||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||||
| Property operating and maintenance expenses (total portfolio) | $ | 511,915 | $ | 502,411 | |||||||||||||||||||||||||||||||
| Non-Same Store operating expenses | (44,953) | (53,731) | |||||||||||||||||||||||||||||||||
| Same Store operating expenses | 466,962 | 448,680 | |||||||||||||||||||||||||||||||||
| Same Store resident recoveries | (58,606) | (49,213) | |||||||||||||||||||||||||||||||||
| Same Store Core operating expenses | $ | 408,356 | $ | 399,467 | |||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 36
| Reconciliation of Net Income to NOI and Same Store NOI, Quarterly | |||||||||||||||||||||||||||||||||||
| (in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | |||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 32,540 | $ | 42,784 | $ | 49,854 | $ | 51,903 | $ | 33,616 | |||||||||||||||||||||||||
Net income available to participating securities | 114 | 119 | 102 | 89 | 91 | ||||||||||||||||||||||||||||||
| Non-controlling interests | 211 | 275 | 320 | 562 | 276 | ||||||||||||||||||||||||||||||
| Interest expense | 87,713 | 86,071 | 84,757 | 88,417 | 89,067 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 138,147 | 137,266 | 135,027 | 133,764 | 133,315 | ||||||||||||||||||||||||||||||
| Property management expense | 14,824 | 14,529 | 14,372 | 14,561 | 15,872 | ||||||||||||||||||||||||||||||
| General and administrative | 17,972 | 14,426 | 14,228 | 15,375 | 16,405 | ||||||||||||||||||||||||||||||
| Impairment and other | 1,723 | (180) | 3,127 | 6,940 | 4,740 | ||||||||||||||||||||||||||||||
| Gain on sale of property, net of tax | (15,106) | (11,167) | (15,200) | (31,780) | (20,812) | ||||||||||||||||||||||||||||||
| Other, net | 3,049 | (1,370) | (3,714) | (3,130) | (4,735) | ||||||||||||||||||||||||||||||
| NOI (total portfolio) | 281,187 | 282,753 | 282,873 | 276,701 | 267,835 | ||||||||||||||||||||||||||||||
| Non-Same Store NOI | (24,892) | (22,750) | (19,097) | (18,968) | (20,348) | ||||||||||||||||||||||||||||||
| Same Store NOI | $ | 256,295 | $ | 260,003 | $ | 263,776 | $ | 257,733 | $ | 247,487 | |||||||||||||||||||||||||
| Reconciliation of Net Income to NOI and Same Store NOI, YTD | |||||||||||||||||||||||||||||||||||
| (in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
| YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 125,178 | $ | 93,165 | |||||||||||||||||||||||||||||||
Net income available to participating securities | 335 | 306 | |||||||||||||||||||||||||||||||||
| Non-controlling interests | 806 | 1,086 | |||||||||||||||||||||||||||||||||
| Interest expense | 258,541 | 278,756 | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | 410,440 | 399,955 | |||||||||||||||||||||||||||||||||
| Property management expense | 43,725 | 47,053 | |||||||||||||||||||||||||||||||||
| General and administrative | 46,626 | 58,899 | |||||||||||||||||||||||||||||||||
| Impairment and other | 4,670 | 11,803 | |||||||||||||||||||||||||||||||||
| Gain on sale of property, net of tax | (41,473) | (64,556) | |||||||||||||||||||||||||||||||||
| Other, net | (2,035) | (8,470) | |||||||||||||||||||||||||||||||||
| NOI (total portfolio) | 846,813 | 817,997 | |||||||||||||||||||||||||||||||||
| Non-Same Store NOI | (66,739) | (63,241) | |||||||||||||||||||||||||||||||||
| Same Store NOI | $ | 780,074 | $ | 754,756 | |||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 37
Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre | |||||||||||||||||||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||||||||||||||||||
| Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 32,540 | $ | 33,616 | $ | 125,178 | $ | 93,165 | |||||||||||||||||||||||||||
Net income available to participating securities | 114 | 91 | 335 | 306 | |||||||||||||||||||||||||||||||
| Non-controlling interests | 211 | 276 | 806 | 1,086 | |||||||||||||||||||||||||||||||
| Interest expense | 87,713 | 89,067 | 258,541 | 278,756 | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 138,147 | 133,315 | 410,440 | 399,955 | |||||||||||||||||||||||||||||||
| EBITDA | 258,725 | 256,365 | 795,300 | 773,268 | |||||||||||||||||||||||||||||||
| Gain on sale of property, net of tax | (15,106) | (20,812) | (41,473) | (64,556) | |||||||||||||||||||||||||||||||
Impairment on depreciated real estate investments | 289 | 3,960 | 4,202 | 11,289 | |||||||||||||||||||||||||||||||
EBITDAre | 243,908 | 239,513 | 758,029 | 720,001 | |||||||||||||||||||||||||||||||
| Share-based compensation expense | 6,086 | 4,625 | 12,293 | 13,847 | |||||||||||||||||||||||||||||||
| Merger and transaction-related expenses | — | — | — | 4,347 | |||||||||||||||||||||||||||||||
| Severance | 133 | 881 | 388 | 8,225 | |||||||||||||||||||||||||||||||
| Casualty losses, net | 1,434 | 780 | 468 | 514 | |||||||||||||||||||||||||||||||
| Other, net | 3,049 | (4,735) | (2,035) | (8,470) | |||||||||||||||||||||||||||||||
Adjusted EBITDAre | $ | 254,610 | $ | 241,064 | $ | 769,143 | $ | 738,464 | |||||||||||||||||||||||||||
| Trailing Twelve Months (TTM) Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 177,081 | $ | 145,068 | |||||||||||||||||||||||||||||||
Net income available to participating securities | 424 | 395 | |||||||||||||||||||||||||||||||||
| Non-controlling interests | 1,368 | 1,648 | |||||||||||||||||||||||||||||||||
| Interest expense | 346,958 | 367,173 | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | 544,204 | 533,719 | |||||||||||||||||||||||||||||||||
| EBITDA | 1,070,035 | 1,048,003 | |||||||||||||||||||||||||||||||||
| Gain on sale of property, net of tax | (73,253) | (96,336) | |||||||||||||||||||||||||||||||||
Impairment on depreciated real estate investments | 7,123 | 14,210 | |||||||||||||||||||||||||||||||||
EBITDAre | 1,003,905 | 965,877 | |||||||||||||||||||||||||||||||||
| Share-based compensation expense | 16,604 | 18,158 | |||||||||||||||||||||||||||||||||
| Merger and transaction-related expenses | — | 4,347 | |||||||||||||||||||||||||||||||||
| Severance | 628 | 8,465 | |||||||||||||||||||||||||||||||||
| Casualty losses, net | 4,487 | 4,533 | |||||||||||||||||||||||||||||||||
| Other, net | (5,165) | (11,600) | |||||||||||||||||||||||||||||||||
Adjusted EBITDAre | $ | 1,020,459 | $ | 989,780 | |||||||||||||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 38
Reconciliation of Net Debt / TTM Adjusted EBITDAre | |||||||||||||||||||||||
| (in thousands, except for ratio) (unaudited) | |||||||||||||||||||||||
| As of | As of | ||||||||||||||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
| Mortgage loans, net | $ | 6,094,980 | $ | 6,238,461 | |||||||||||||||||||
| Secured term loan, net | 401,040 | 400,978 | |||||||||||||||||||||
| Term loan facility, net | 1,495,913 | 1,493,747 | |||||||||||||||||||||
| Revolving facility | — | — | |||||||||||||||||||||
| Convertible senior notes, net | 338,112 | 334,299 | |||||||||||||||||||||
| Total Debt per Balance Sheet | 8,330,045 | 8,467,485 | |||||||||||||||||||||
| Retained and repurchased certificates | (311,499) | (319,632) | |||||||||||||||||||||
Cash, ex-security deposits and letters of credit (1) | (649,382) | (138,059) | |||||||||||||||||||||
| Deferred financing costs, net | 20,310 | 36,685 | |||||||||||||||||||||
| Unamortized discounts on note payable | 9,265 | 13,342 | |||||||||||||||||||||
| Net Debt (A) | $ | 7,398,739 | $ | 8,059,821 | |||||||||||||||||||
| For the Trailing Twelve | For the Trailing Twelve | ||||||||||||||||||||||
| Months (TTM) Ended | Months (TTM) Ended | ||||||||||||||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Adjusted EBITDAre (B) | $ | 1,020,459 | $ | 989,780 | |||||||||||||||||||
Net Debt / TTM Adjusted EBITDAre (A / B) | 7.3x | 8.1x | |||||||||||||||||||||
(1)Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit.
| Components of Non-cash Interest Expense | |||||||||||||||||||||||||||||
| (in thousands) (unaudited) | |||||||||||||||||||||||||||||
| Q3 2020 | Q3 2019 | YTD 2020 | YTD 2019 | ||||||||||||||||||||||||||
Amortization of discounts on notes payable | $ | 1,380 | $ | 1,317 | $ | 4,077 | $ | 6,026 | |||||||||||||||||||||
Amortization of deferred financing costs | 3,800 | 9,229 | 18,153 | 29,386 | |||||||||||||||||||||||||
Change in fair value of interest rate derivatives | 146 | 64 | 198 | 98 | |||||||||||||||||||||||||
Amortization of swap fair value at designation | 1,557 | (225) | 4,212 | 1,912 | |||||||||||||||||||||||||
Total non-cash interest expense | $ | 6,883 | $ | 10,385 | $ | 26,640 | $ | 37,422 | |||||||||||||||||||||
Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q3 2020 Earnings Release and Supplemental Information — page 39