EX-99.1 2 q12019supplemental.htm EXHIBIT 99.1 Exhibit
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Table of Contents















Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 1
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Earnings Press Release
Invitation Homes Reports First Quarter 2019 Results
Dallas, TX, May 6, 2019 — Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), a leading owner and operator of single-family rental homes in the United States, today announced its first quarter 2019 financial and operating results.

First Quarter 2019 Highlights
•
Year over year, total revenues increased 2.8% to $436 million, total property operating and maintenance expenses decreased 0.3% to $160 million, and net income attributable to common stockholders increased to $21 million, or $0.04 per share.
•
Core FFO per share increased 14.4% year over year to $0.33, and AFFO per share increased 17.6% year over year to $0.28.
•
Same Store NOI grew 7.3% year over year on 4.7% Same Store Core revenue growth and a 0.1% decrease in Same Store Core operating expenses.
•
Same Store average occupancy was 96.5%, up 80 basis points year over year.
•
Same Store renewal rent growth of 5.2% and Same Store new lease rent growth of 3.6% drove Same Store blended rent growth 70 basis points higher year over year to 4.7%.
•
Same Store cost to maintain (net) for the quarter decreased 9.1% year over year.
•
Merger integration was completed ahead of schedule, with $54 million of synergies realized on an annualized run-rate basis as of March 31, 2019.
•
In Q1 2019, the Company prepaid $181 million of secured debt with cash generated from operations and dispositions. In April 2019, the Company prepaid an additional $70 million of secured debt. The debt prepaid in Q1 2019 and April 2019 carried a weighted average interest rate of LIBOR + 255 bps.
•
Subsequent to quarter end, the Company closed on a $115 million bulk acquisition of 463 homes in in-fill submarkets of Las Vegas and Atlanta that overlap closely with Invitation Homes' existing portfolio in those markets.
•
In March 2019, affiliates of Blackstone and Starwood Capital Group completed a secondary offering of 43 million shares of Invitation Homes common stock. Invitation Homes did not receive any proceeds from the transaction. After the transaction, Blackstone and Starwood Capital Group's ownership decreased to approximately 34% and 1%, respectively, of total common shares and units outstanding at March 31, 2019.

President & Chief Executive Officer Dallas Tanner comments: "We are pleased to report a strong start to 2019. Fundamentals in our unique locations remain favorable, the high-quality living experience and service we provide remains a differentiator in the marketplace, and our operating efficiency continues to improve. This resulted in first quarter 2019 Same Store NOI growth of 7.3%, which exceeded our expectations.

"We now enter the important spring and summer seasons for our business with many tailwinds at our back. Our portfolio is more occupied than it has ever been going into peak leasing season, after averaging 96.5% occupancy in the first quarter of 2019. The value that residents find in leasing with Invitation Homes is driving turnover lower, even as market rent growth exceeds prior year levels to keep pace with supply/demand fundamentals. On the expense side of the business, we are pleased with the continued progress we are making on repairs and maintenance productivity, and are excited about our opportunity to further enhance efficiency as we fully roll out ProCare and operate on one unified platform post-merger integration. Based on our strong first quarter results and the multiple growth drivers at our back, we are increasing the midpoint of our FY 2019 Same Store NOI growth guidance range by 50 bps to 4.5%, and increasing the midpoints of our FY 2019 Core FFO and AFFO per share guidance ranges by $0.01 to $1.25 and $1.03, respectively."


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 2
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Financial Results
Net Income (Loss), FFO, Core FFO, and AFFO Per Share — Diluted
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q1 2018
 
 
 
Net income (loss) (1)
 
$
0.04

 
$
(0.03
)
 
 
 
FFO (1)
 
0.26

 
0.23

 
 
 
Core FFO (2)
 
0.33

 
0.29

 
 
 
AFFO (2)
 
0.28

 
0.24

 
 
 
 
 
 
 
 
 
 
 
(1)
In accordance with GAAP and Nareit guidelines, net income (loss) per share and FFO per share are calculated as if the 3.0% Convertible Notes due July 1, 2019 ("2019 Convertible Notes") were converted to common shares at the beginning of the relevant period, unless such treatment is anti-dilutive to net income (loss) per share or FFO per share. As such, FFO per share in Q1 2019 is calculated by adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes, and including shares issuable upon conversion of the 2019 Convertible Notes as shares outstanding in the denominator. Net income (loss) per share in Q1 2019 does not treat the 2019 Convertible Notes as if they were converted, as doing so would be anti-dilutive to net income (loss) per share.
(2)
Core FFO and AFFO per share reflect the 2019 Convertible Notes in the form in which they were outstanding during the period. Because the 2019 Convertible Notes were an interest-bearing liability during the periods reflected in the table, cash interest expense associated with the 2019 Convertible Notes has been included in Core FFO and AFFO in the numerators, and shares issuable upon conversion of the 2019 Convertible Notes have not been included as shares outstanding in the denominators.

Net Income (Loss)
Net income per share in the first quarter of 2019 was $0.04 per share, compared to a net loss of $0.03 per share in the first quarter of 2018. Total revenues and total property operating and maintenance expenses in the first quarter of 2019 were $436 million and $160 million, respectively, compared to $424 million and $161 million, respectively, in the first quarter of 2018.

Core FFO
Year over year, Core FFO in the first quarter of 2019 increased 14.4% to $0.33 per share, primarily due to an increase in NOI and lower cash interest expense.

AFFO
Year over year, AFFO in the first quarter of 2019 increased 17.6% to $0.28 per share, primarily driven by the increase in Core FFO described above.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 3
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Operating Results
Same Store Operating Results Snapshot
 
 
 
 
 
 
 
Number of homes in Same Store portfolio:
 
73,704

 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q1 2018
 
 
Core revenue growth (year-over-year)
 
4.7
 %
 
 
 
 
Core operating expense growth (year-over-year)
 
(0.1
)%
 
 
 
 
NOI growth (year-over-year)
 
7.3
 %
 
 
 
 
 
 
 
 
 
 
 
Average occupancy
 
96.5
 %
 
95.7
%
 
 
Turnover rate
 
6.4
 %
 
7.7
%
 
 
 
 
 
 
 
 
 
Rental rate growth (lease-over-lease):
 
 
 
 
 
 
Renewals
 
5.2
 %
 
4.9
%
 
 
New leases
 
3.6
 %
 
2.5
%
 
 
Blended
 
4.7
 %
 
4.0
%
 
 
 
 
 
 
 
 
 

Same Store NOI
For the Same Store portfolio of 73,704 homes, first quarter 2019 Same Store NOI increased 7.3% year over year on Same Store Core revenue growth of 4.7% and a 0.1% decrease in Same Store Core operating expenses.

Same Store Core Revenues
First quarter 2019 Same Store Core revenue growth of 4.7% year over year was driven by a 4.1% increase in average monthly rent and an 80 basis point increase in average occupancy to 96.5%.

Same Store Core Operating Expenses
First quarter 2019 Same Store Core operating expenses decreased 0.1% year over year, driven by a 10.2% decline in controllable expenses, net of resident recoveries. Controllable expenses benefited primarily from: 1) continued process refinements for repairs and maintenance ("R&M") and turns, resulting in more efficient delivery of high-quality care for residents and homes; 2) lower resident turnover; 3) a favorable comparison to the first quarter of 2018 when R&M work order volume was higher than normal; and 4) property-level merger synergies. These favorable factors impacting controllable expense growth were partially offset by the negative impact of comparing to a first quarter of 2018 in which post-merger alignment of utility bill-back timing resulted in higher than normal resident recoveries. Same Store property taxes increased 4.8% year over year.

Investment Management Activity
Invitation Homes acquired 208 homes for $62 million, including estimated renovation costs, in the first quarter of 2019 and sold 654 homes for gross proceeds of $155 million, resulting in a total portfolio home count of 80,361 homes at March 31, 2019. Dispositions in the quarter included 107 homes sold in bulk transactions for gross proceeds of $18 million.

Subsequent to quarter end, the Company closed on a bulk acquisition of 463 homes for $115 million. The acquired portfolio consists of 297 homes in Las Vegas and 166 homes in Atlanta, located within in-fill submarkets that overlap closely with Invitation Homes' existing footprint. The portfolio was 98.9% occupied at the time of acquisition, with average monthly rents of $1,554 per home that the Company believes are below current market rents. The Company also expects to increase NOI margins for the portfolio by bringing the homes onto the Invitation Homes platform where they can benefit from better operating efficiency and economies of scale.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 4
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Merger Integration Update
Merger integration has been completed ahead of schedule, with the unified operating platform and field configuration now in place across all 17 of the Company's markets. This is expected to result in even higher quality resident service delivered even more efficiently. Transitions to the unified platform were smooth, and feedback from field teams has been very positive.

Synergy achievement amounts also exceeded the midpoint of management's $50 - $55 million expectation. Integration efforts resulted in $54 million of realized synergies on an annualized run-rate basis as of March 31, 2019. Of those synergies, $41 million related to property management and general & administrative ("G&A") expenses, $11 million related to operating expenses, and $2 million related to capitalized expenses. With one team operating on one platform, the Company will also be better positioned to identify additional opportunities for platform refinement, innovation, and procurement savings going forward.

Balance Sheet and Capital Markets Activity
At March 31, 2019, the Company had $1,131 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility. The Company's total indebtedness at March 31, 2019 was $9,161 million, consisting of $7,086 million of secured debt and $2,075 million of unsecured debt.

As previously announced, in the first quarter of 2019 the Company prepaid $181 million of secured debt with cash generated from operations and dispositions. In April 2019, the Company used cash on hand to prepay an additional $70 million of secured debt. The debt prepaid in the first quarter of 2019 and April 2019 carried a weighted average interest rate of LIBOR + 255 bps. Giving effect to these prepayments, as of April 30, 2019 the weighted average cost of remaining debt outstanding (including swap impact) was 3.6%, of which 89% was fixed or swapped to fixed rate. Supplemental Schedule 2(d) provides information about how debt costs and exposure to floating rates are expected to change in future periods based on the Company's current capital structure and current LIBOR rates.

Weighted average years to maturity at March 31, 2019 was 5.3 years, with no debt reaching final maturity in 2019 or 2020 after taking into account the Company's previously announced intent to settle conversions of Convertible Notes due July 1, 2019 with common shares. Net debt / annualized Adjusted EBITDAre at March 31, 2019 was 8.6x, down from 9.0x at December 31, 2018.

Dividend
As previously announced, on May 2, 2019 the Company's Board of Directors declared a quarterly cash dividend of $0.13 per share of common stock. The dividend will be paid on or before May 31, 2019 to stockholders of record as of the close of business on May 15, 2019.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 5
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Full Year 2019 Guidance Update
FY 2019 Guidance
 
 
 
 
 
 
 
 
Revised
 
Previous
 
 
 
FY 2019
 
FY 2019
 
 
 
Guidance
 
Guidance
 
Core FFO per share – diluted (1)
 
$1.21 - $1.29
 
$1.20 - $1.28
 
AFFO per share – diluted (1)
 
$0.99 - $1.07
 
$0.98 - $1.06
 
 
 
 
 
 
 
Same Store Core revenue growth
 
3.8% - 4.4%
 
3.8% - 4.4%
 
Same Store Core operating expense growth
 
3.0% - 4.0%
 
3.5% - 4.5%
 
Same Store NOI growth
 
4.0% - 5.0%
 
3.5% - 4.5%
 
 
 
 
 
 
 
(1)
For the purposes of reporting 2019 Core FFO and AFFO per share, the Company treats the 2019 Convertible Notes due July 1, 2019 in the form in which they are outstanding during each period. Guidance treats the 2019 Convertible Notes as an interest-bearing liability in the first and second quarters of 2019, and as common shares in the third and fourth quarters of 2019.


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

Earnings Conference Call Information
Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on Tuesday, May 7, 2019 to discuss results for the first quarter of 2019. The domestic dial-in number is 1-888-317-6003, and the international dial-in number is 1-412-317-6061. The passcode is 2381778. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through June 7, 2019 and can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using the replay passcode 10130628, or by using the link at www.invh.com.

Supplemental Information
The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes' Investor Relations website at www.invh.com.

Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures
Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States ("GAAP"). These measures are defined in the Glossary in the Supplemental Information and, as applicable, reconciled to the most comparable GAAP measures.

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

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 6
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Investor Relations Contact
Greg Van Winkle


Phone: 844.456.INVH (4684)


Email: IR@InvitationHomes.com

Media Relations Contact
Kristi DesJarlais


Phone: 972.421.3587


Email: Media@InvitationHomes.com

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which include, but are not limited to, statements related to the Company’s expectations regarding the anticipated benefits of the merger with Starwood Waypoint Homes, the performance of the Company’s business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks associated with achieving expected revenue synergies or cost savings from the merger, risks inherent to the single-family rental industry sector and the Company’s business model, macroeconomic factors beyond the Company’s control, competition in identifying and acquiring the Company’s properties, competition in the leasing market for quality residents, increasing property taxes, homeowners' association fees and insurance costs, the Company’s dependence on third parties for key services, risks related to evaluation of properties, poor resident selection and defaults and non-renewals by the Company’s residents, performance of the Company’s information technology systems, and risks related to the Company’s indebtedness. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company believes these factors include, but are not limited to, those described under the section entitled "Part I. Item 1A. Risk Factors," of the Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at http://www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 7
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Consolidated Balance Sheets
($ in thousands, except shares and per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
 
 
2019
 
2018
 
 
 
(unaudited)
 
 
 
Assets:
 
 
 
 
 
Investments in single-family residential properties, net
 
$
16,509,876

 
$
16,686,060

 
Cash and cash equivalents
 
130,896

 
144,940

 
Restricted cash
 
220,522

 
215,051

 
Goodwill
 
258,207

 
258,207

 
Other assets, net
 
734,118

 
759,170

 
Total assets
 
$
17,853,619

 
$
18,063,428

 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Mortgage loans, net
 
$
7,029,768

 
$
7,201,654

 
Term loan facility, net
 
1,491,582

 
1,490,860

 
Revolving facility
 
—

 
—

 
Convertible senior notes, net
 
559,575

 
557,301

 
Accounts payable and accrued expenses
 
193,495

 
169,603

 
Resident security deposits
 
150,672

 
148,995

 
Other liabilities
 
207,159

 
125,829

 
Total liabilities
 
9,632,251

 
9,694,242

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

 
—

 
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 524,989,775 and 520,647,977 outstanding as of March 31, 2019 and December 31, 2018, respectively
 
5,250

 
5,206

 
Additional paid-in capital
 
8,685,058

 
8,629,462

 
Accumulated deficit
 
(439,737
)
 
(392,594
)
 
Accumulated other comprehensive loss
 
(110,655
)
 
(12,963
)
 
Total stockholders' equity
 
8,139,916

 
8,229,111

 
Non-controlling interests
 
81,452

 
140,075

 
Total equity
 
8,221,368

 
8,369,186

 
Total liabilities and equity
 
$
17,853,619

 
$
18,063,428

 
 
 
 
 
 
 
 
 
 
 
 
 


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 8
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Consolidated Statements of Operations
 
($ in thousands, except shares and per share amounts) (unaudited)
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q1 2018
 
Rental revenues and other property income
 
$
435,500

 
$
423,669

 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
Property operating and maintenance
 
160,346

 
160,767

 
Property management expense
 
15,160

 
17,164

 
General and administrative
 
26,538

 
27,636

 
Interest expense
 
93,983

 
92,299

 
Depreciation and amortization
 
133,609

 
144,500

 
Impairment and other
 
5,392

 
6,121

 
Total expenses
 
435,028

 
448,487

 
 
 
 
 
 
 
Other, net
 
3,125

 
1,736

 
Gain on sale of property, net of tax
 
17,572

 
5,502

 
 
 
 
 
 
 
Net income (loss)
 
21,169

 
(17,580
)
 
Net (income) loss attributable to non-controlling interests
 
(347
)
 
311

 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
 
$
20,822

 
$
(17,269
)
 
Net income available to participating securities
 
(106
)
 
(222
)
 
 
 
 
 
 
 
Net income (loss) available to common stockholders — basic and diluted
 
$
20,716

 
$
(17,491
)
 
 
 
 
 
 
 
Weighted average common shares outstanding — basic
 
521,440,822

 
519,660,998

 
Weighted average common shares outstanding — diluted
 
521,817,494

 
519,660,998

 
 
 
 
 
 
 
Net income (loss) per common share — basic
 
$
0.04

 
$
(0.03
)
 
Net income (loss) per common share — diluted
 
$
0.04

 
$
(0.03
)
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.13

 
$
0.11

 
 
 
 
 
 
 


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 9
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Supplemental Schedule 1
Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)
 
 
 
 
 
 
 
 
FFO Reconciliation
 
Q1 2019
 
Q1 2018
 
 
Net income (loss) available to common stockholders
 
$
20,716

 
$
(17,491
)
 
 
Net income available to participating securities
 
106

 
222

 
 
Non-controlling interests
 
347

 
(311
)
 
 
Depreciation and amortization on real estate assets
 
132,520

 
143,108

 
 
Impairment on depreciated real estate investments
 
3,253

 
603

 
 
Net gain on sale of previously depreciated investments in real estate
 
(17,572
)
 
(5,502
)
 
 
FFO
 
$
139,370

 
$
120,629

 
 
 
 
 
 
 
 
 
Core FFO Reconciliation
 
Q1 2019
 
Q1 2018
 
 
FFO
 
$
139,370

 
$
120,629

 
 
Noncash interest expense
 
14,865

 
8,495

 
 
Share-based compensation expense
 
5,607

 
9,498

 
 
Offering related expenses
 
1,543

 
—

 
 
Merger and transaction-related expenses
 
2,795

 
4,367

 
 
Severance expense
 
6,969

 
2,659

 
 
Casualty losses, net
 
2,139

 
5,518

 
 
Core FFO
 
$
173,288

 
$
151,166

 
 
 
 
 
 
 
 
 
AFFO Reconciliation
 
Q1 2019
 
Q1 2018
 
 
Core FFO
 
$
173,288

 
$
151,166

 
 
Recurring capital expenditures
 
(25,111
)
 
(25,393
)
 
 
Adjusted FFO
 
$
148,177

 
$
125,773

 
 
 
 
 
 
 
 
 
Net income (loss) available to common stockholders
 
 
 
 
 
 
Weighted average common shares outstanding — diluted (1)
 
521,817,494
 
519,660,998

 
 
 
 
 
 
 
 
 
Net income (loss) per common share — diluted (1)
 
$
0.04

 
$
(0.03
)
 
 
 
 
 
 
 
 
 
FFO
 
 
 
 
 
 
FFO for per share calculation(1)
 
$
142,173

 
$
120,629

 
 
Weighted average common shares and OP Units outstanding — diluted (1)
 
543,717,533
 
530,314,568

 
 
 
 
 
 
 
 
 
FFO per share — diluted (1)
 
$
0.26

 
$
0.23

 
 
 
 
 
 
 
 
 
Core FFO and Adjusted FFO
 
 
 
 
 
 
Weighted average shares and units outstanding — diluted (2)
 
531,226,791
 
530,314,568

 
 
 
 
 
 
 
 
 
Core FFO per share — diluted (2)
 
$
0.33

 
$
0.29

 
 
AFFO per share — diluted (2)
 
$
0.28

 
$
0.24

 
 
 
 
 
 
 
 
 
(1)
In accordance with GAAP and Nareit guidelines, net income (loss) per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of the relevant period, unless such treatment is anti-dilutive to net income (loss) per share or FFO per share. As such, FFO per share

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 10
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in Q1 2019 is calculated by adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes, and including shares issuable upon conversion of the 2019 Convertible Notes as shares outstanding in the denominator. Net income (loss) per share in Q1 2019 does not treat the 2019 Convertible Notes as if they were converted, as doing so would be anti-dilutive to net income (loss) per share.
(2)
Core FFO and AFFO per share reflect the 2019 Convertible Notes in the form in which they were outstanding during the period. Because the 2019 Convertible Notes were an interest-bearing liability during the periods reflected in the table, cash interest expense associated with the 2019 Convertible Notes has been included in Core FFO and AFFO in the numerators, and shares issuable upon conversion of the 2019 Convertible Notes have not been included as shares outstanding in the denominators.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 11

Supplemental Schedule 2(a)
Diluted Shares Outstanding
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Amounts for Net Income (Loss) (1)
 
Q1 2019
 
Q1 2018
 
 
Total common shares — diluted
 
521,817,494

 
519,660,998

 
 
 
 
 
 
 
 
 
Weighted average amounts for FFO (1)
 
Q1 2019
 
Q1 2018
 
 
Common shares — diluted
 
522,538,205

 
520,953,961

 
 
Shares issuable from 2019 Convertible Notes
 
12,490,742

 
—

 
 
OP units
 
8,688,586

 
9,360,607

 
 
Total common shares and units — diluted
 
543,717,533

 
530,314,568

 
 
 
 
 
 
 
 
 
Weighted average amounts for Core and AFFO (2)
 
Q1 2019
 
Q1 2018
 
 
Common shares — diluted
 
522,538,205

 
520,953,961

 
 
OP units
 
8,688,586

 
9,360,607

 
 
Total common shares and units — diluted
 
531,226,791

 
530,314,568

 
 
 
 
 
 
 
 
 
Period end amounts for Core FFO, and AFFO (2)
 
March 31, 2019
 
 
 
 
Common shares — diluted
 
525,937,530

 
 
 
 
OP units
 
5,463,285

 
 
 
 
Total common shares and units - diluted
 
531,400,815

 
 
 
 
 
 
 
 
 
 
 
(1)
In accordance with GAAP and Nareit guidelines, net income (loss) per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of the relevant period, unless such treatment is anti-dilutive to net income (loss) per share or FFO per share. As such, FFO per share in Q1 2019 is calculated by adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes, and including shares issuable upon conversion of the 2019 Convertible Notes as shares outstanding in the denominator. Net income (loss) per share in Q1 2019 does not treat the 2019 Convertible Notes as if they were converted, as doing so would be anti-dilutive to net income (loss) per share.
(2)
Core FFO and AFFO per share reflect the 2019 Convertible Notes in the form in which they were outstanding during the period. Because the 2019 Convertible Notes were an interest-bearing liability during the periods reflected in the table, cash interest expense associated with the 2019 Convertible Notes has been included in Core FFO and AFFO in the numerators, and shares issuable upon conversion of the 2019 Convertible Notes have not been included as shares outstanding in the denominators.











Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 12
logo_horizontala08.jpg

Supplemental Schedule 2(b)
Debt Structure and Leverage Ratios — March 31, 2019 (1)
 
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wtd Avg
 
Wtd Avg
 
 
 
 
 
 
 
Interest
 
Years
 
Debt Structure
 
Balance
 
% of Total
 
Rate (2)
 
to Maturity
 
Secured:
 
 
 
 
 
 
 
 
 
Fixed
 
$
998,818

 
10.9
%
 
4.2
%
 
8.2

 
Floating — swapped to fixed
 
5,020,000

 
54.8
%
 
3.4
%
 
5.5

 
Floating
 
1,066,841

 
11.6
%
 
3.8
%
 
6.6

 
Total secured
 
7,085,659

 
77.3
%
 
3.6
%
 
6.0

 
 
 
 
 
 
 
 
 
 
 
Unsecured:
 
 
 
 
 
 
 
 
 
Fixed (Convertible)
 
574,991

 
6.3
%
 
3.3
%
 
1.8

 
Floating — swapped to fixed
 
1,500,000

 
16.4
%
 
3.7
%
 
2.9

 
Floating
 
—

 
—
%
 
—
%
 
—

 
Total unsecured
 
2,074,991

 
22.7
%
 
3.6
%
 
2.6

 
 
 
 
 
 
 
 
 
 
 
Total Debt:
 
 
 
 
 
 
 
 
 
Fixed + floating swapped to fixed
 
8,093,809

 
88.4
%
 
3.6
%
 
5.1

 
Floating
 
1,066,841

 
11.6
%
 
3.8
%
 
6.6

 
Total debt
 
9,160,650

 
100.0
%
 
3.6
%
 
5.3

 
Unamortized discounts on notes payable
 
(18,321
)
 
 
 
 
 
 
 
Deferred financing costs
 
(61,404
)
 
 
 
 
 
 
 
Total Debt per Balance Sheet
 
9,080,925

 
 
 
 
 
 
 
Retained and repurchased certificates
 
(361,151
)
 
 
 
 
 
 
 
Cash, ex-security deposits (3)
 
(200,361
)
 
 
 
 
 
 
 
Deferred financing costs
 
61,404

 
 
 
 
 
 
 
Unamortized discounts on notes payable
 
18,321

 
 
 
 
 
 
 
Net debt
 
$
8,599,138

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leverage Ratios
 
Q1 2019
 
 
 
 
 
 
 
Fixed charge coverage ratio
 
3.1
x
 
 
 
 
 
 
 
Net debt / annualized Adjusted EBITDAre (4)
 
8.6
x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The impact of April 2019 voluntary prepayments of $12,800 of outstanding borrowings under IH 2017-2 and $57,200 of outstanding borrowings under IH 2018-1, securitization loans maturing in 2024 and 2025, respectively, is not included in this table.
(2)
Includes the impact of interest rate swaps in place and effective as of March 31, 2019.
(3)
Represents cash and cash equivalents and the non-security deposit portion of restricted cash.
(4)
In December 2018, the Company gave notice of intent to settle conversions of its 3.0% Convertible Notes due July 1, 2019 with common shares. Net debt / annualized Adjusted EBITDAre presented in this table does not take into account the anticipated conversion. On a pro forma basis, whereby net debt is reduced for the impact of the conversion of the 2019 Convertible Notes, net debt / annualized Adjusted EBITDAre at March 31, 2019 would have been 8.4x.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 13
logo_horizontala08.jpg

Supplemental Schedule 2(c)
Debt Maturity Schedule — March 31, 2019 (1)(2)
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving
 
 
 
 
 
 
 
Secured
 
Unsecured
 
Credit
 
 
 
% of
 
Debt Maturities, with Extensions (3)
 
Debt
 
Debt
 
Facility
 
Balance
 
Total
 
2019
 
$
—

 
$
229,991

 
$
—

 
$
229,991

 
2.5
%
 
2020
 
—

 
—

 
—

 
—

 
—
%
 
2021
 
369,665

 
—

 
—

 
369,665

 
4.0
%
 
2022
 
—

 
1,845,000

 
—

 
1,845,000

 
20.1
%
 
2023
 
762,294

 
—

 
—

 
762,294

 
8.3
%
 
2024
 
770,744

 
—

 
—

 
770,744

 
8.5
%
 
2025
 
3,226,909

 
—

 
—

 
3,226,909

 
35.2
%
 
2026
 
957,229

 
—

 
—

 
957,229

 
10.5
%
 
2027
 
998,818

 
—

 
—

 
998,818

 
10.9
%
 
 
 
7,085,659

 
2,074,991

 
—

 
9,160,650

 
100.0
%
 
Unamortized discounts on notes payable
 
(2,905
)
 
(15,416
)
 
—

 
(18,321
)
 
 
 
Deferred financing costs
 
(52,986
)
 
(8,418
)
 
—

 
(61,404
)
 
 
 
Total per Balance Sheet
 
$
7,029,768

 
$
2,051,157

 
$
—

 
$
9,080,925

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The impact of April 2019 voluntary prepayments of $12,800 of outstanding borrowings under IH 2017-2 and $57,200 of outstanding borrowings under IH 2018-1, securitization loans maturing in 2024 and 2025, respectively, is not included in this table.
(2)
In December 2018, the Company gave notice of intent to settle conversions of its 3.0% Convertible Notes due July 1, 2019 with common shares. The impact of the anticipated conversion is not included in this table.
(3)
Assumes all extension options are exercised.





















Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 14
logo_horizontala08.jpg

Supplemental Schedule 2(d)
Cost to Maturity of Debt as of March 31, 2019
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of Weighted Average Debt Outstanding by Type
 
Weighted Average Cost by Instrument Type
 
 
 
Weighted Average
 
Issued
 
Issued
 
 
 
Total
 
Spread to
 
Fixed Cost
 
 
 
Total Debt
 
 
 
Amount of
 
Floating
 
Floating
 
 
 
Fixed
 
 LIBOR
 
of
 
 
 
Including
 
 
 
Debt
 
and
 
but Swapped
 
Issued
 
or Swapped
 
For Floating
 
Interest Rate
 
Fixed Rate
 
Swap
 
 
 
Outstanding (1)
 
Not Swapped
 
to Fixed
 
Fixed
 
 to Fixed
 
Rate Debt
 
Rate Swaps
 
Debt
 
Impact (2)
 
2Q-4Q19
 
$
9,007,601

 
11.8
%
 
72.4
%
 
15.8
%
 
88.2
%
 
1.5
%
 
2.0
%
 
4.0
%
 
3.6
%
 
2020
 
8,930,659

 
7.9
%
 
77.1
%
 
15.0
%
 
92.2
%
 
1.5
%
 
2.3
%
 
4.0
%
 
3.8
%
 
2021
 
8,908,378

 
12.2
%
 
72.7
%
 
15.1
%
 
87.8
%
 
1.5
%
 
2.5
%
 
4.0
%
 
4.0
%
 
2022
 
6,882,227

 
19.2
%
 
66.1
%
 
14.7
%
 
80.8
%
 
1.4
%
 
2.9
%
 
4.2
%
 
4.2
%
 
2023
 
5,972,496

 
9.3
%
 
74.0
%
 
16.7
%
 
90.7
%
 
1.4
%
 
3.0
%
 
4.2
%
 
4.3
%
 
2024
 
5,907,371

 
9.4
%
 
73.7
%
 
16.9
%
 
90.6
%
 
1.4
%
 
3.0
%
 
4.2
%
 
4.3
%
 
2025
 
3,248,283

 
21.9
%
 
47.4
%
 
30.7
%
 
78.1
%
 
1.4
%
 
3.0
%
 
4.2
%
 
4.2
%
 
2026
 
1,022,421

 
2.3
%
 
—
%
 
97.7
%
 
97.7
%
 
1.4
%
 
N/A

 
4.2
%
 
4.2
%
 
2027
 
437,838

 
—
%
 
—
%
 
100.0
%
 
100.0
%
 
N/A

 
N/A

 
4.2
%
 
4.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
In each period, represents March 31, 2019 debt that remains outstanding assuming all debt is held until final maturity with all extension options exercised. The impact of April 2019 voluntary prepayments of $12,800 of outstanding borrowings under IH 2017-2 and $57,200 of outstanding borrowings under IH 2018-1, securitization loans maturing in 2024 and 2025, respectively, is not included in this table.
(2)
Assumes March 31, 2019 LIBOR rate of 2.49% 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 March 31, 2019, as well as the rate for 30-day LIBOR as of March 31, 2019. New debt not presented in this table may be issued, and/or existing debt presented in this table may be repaid prior to maturity. Similarly, new interest rate swaps may be put in place. 30-day LIBOR may also change. The aforementioned activities may change the amount of outstanding debt, the percentage of debt floating, swapped, or fixed, and/or the weighted average cost of debt and hedging instruments from what is presented in Schedule 2(d).




Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 15
logo_horizontala08.jpg

Supplemental Schedule 3(a)
Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
Number of Homes, period-end
 
Q1 2019
 
 
 
 
 
 
Total portfolio
 
80,361

 
 
 
 
 
 
Same Store portfolio
 
73,704

 
 
 
 
 
 
Same Store % of Total
 
91.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Revenues
 
Q1 2019
 
Q1 2018
 
Change YoY
 
 
Total portfolio
 
$
418,954

 
$
409,593

 
2.3
 %
 
 
Same Store portfolio
 
390,573

 
373,024

 
4.7
 %
 
 
 
 
 
 
 
 
 
 
 
Core Operating expenses
 
Q1 2019
 
Q1 2018
 
Change YoY
 
 
Total portfolio
 
$
143,800

 
$
146,691

 
(2.0
)%
 
 
Same Store portfolio
 
130,282

 
130,412

 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
Q1 2019
 
Q1 2018
 
Change YoY
 
 
Total portfolio
 
$
275,154

 
$
262,902

 
4.7
 %
 
 
Same Store portfolio
 
260,291

 
242,612

 
7.3
 %
 
 
 
 
 
 
 
 
 
 
 




Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 16
logo_horizontala08.jpg

Supplemental Schedule 3(b)
Same Store Portfolio Operating Detail
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change
 
 
 
Change
 
 
 
Q1 2019
 
Q1 2018
 
YoY
 
Q4 2018
 
Seq
 
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Rental revenues
$
378,207

 
$
360,412

 
4.9
 %
 
$
373,636

 
1.2
 %
 
 
Other property income (1)(2)
27,611

 
25,489

 
8.3
 %
 
26,353

 
4.8
 %
 
 
Total revenues
405,818

 
385,901

 
5.2
 %
 
399,989

 
1.5
 %
 
 
Less: Resident recoveries (1)(2)
(15,245
)
 
(12,877
)
 
18.4
 %
 
(13,594
)
 
12.1
 %
 
 
Core revenues
390,573

 
373,024

 
4.7
 %
 
386,395

 
1.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Expenses:
 
 
 
 
 
 
 
 
 
 
 
Property taxes
67,383

 
64,321

 
4.8
 %
 
67,761

 
(0.6
)%
 
 
Insurance expenses
7,668

 
7,024

 
9.2
 %
 
7,566

 
1.3
 %
 
 
HOA expenses
8,610

 
7,132

 
20.7
 %
 
7,066

 
21.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Controllable Expenses:
 
 
 
 
 
 
 
 
 
 
 
Repairs and maintenance (3)
17,380

 
18,929

 
(8.2
)%
 
17,650

 
(1.5
)%
 
 
Personnel
16,499

 
18,160

 
(9.1
)%
 
16,859

 
(2.1
)%
 
 
Turnover
8,368

 
11,262

 
(25.7
)%
 
10,024

 
(16.5
)%
 
 
Utilities (1)
14,588

 
10,660

 
36.8
 %
 
12,966

 
12.5
 %
 
 
Leasing and marketing (4)
2,578

 
2,905

 
(11.3
)%
 
2,754

 
(6.4
)%
 
 
Property administrative
2,453

 
2,896

 
(15.3
)%
 
2,462

 
(0.4
)%
 
 
Property operating and maintenance expenses
145,527

 
143,289

 
1.6
 %
 
145,108

 
0.3
 %
 
 
Less: Resident recoveries (1)(2)
(15,245
)
 
(12,877
)
 
18.4
 %
 
(13,594
)
 
12.1
 %
 
 
Core operating expenses
130,282

 
130,412

 
(0.1
)%
 
131,514

 
(0.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
$
260,291

 
$
242,612

 
7.3
 %
 
$
254,881

 
2.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The year-over-year increases in other property income, 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.
(2)
In addition to the transition in utility billing policy, other property income and resident recoveries in Q1 2018 were higher as a result of a one-time item related to the timing by which resident utility recoveries are accrued. The timing of resident utility bill-backs from the two merged companies were aligned in Q1 2018 by adopting a best practice that matches reimbursements with the period in which the corresponding expenses are booked. This resulted in a one-time increase in resident recoveries in Q1 2018.
(3)
Service requests related to damage from 2017's hurricanes were prioritized in the fourth quarter of 2017, pushing some routine, non-storm related service requests from the fourth quarter of 2017 into the first quarter of 2018. As such, Q1 2018 repairs and maintenance expenses were likely higher than they otherwise would have been in the absence of hurricane weather.
(4)
Same Store leasing and marketing expense includes amortization of leasing commissions of $2,312, $2,671 and $2,415 for Q1 2019, Q1 2018 and Q4 2018, respectively.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 17
logo_horizontala08.jpg

Supplemental Schedule 3(c)
Same Store Quarterly Operating Trends
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Average occupancy
 
96.5
%
 
96.0
%
 
95.5
%
 
96.1
%
 
95.7
%
 
Turnover rate
 
6.4
%
 
5.9
%
 
9.3
%
 
9.4
%
 
7.7
%
 
Trailing four quarters turnover rate
 
31.0
%
 
32.3
%
 
N/A

 
N/A

 
N/A

 
Average monthly rent
 
$
1,784

 
$
1,770

 
$
1,755

 
$
1,734

 
$
1,713

 
Rental rate growth (lease-over-lease):
 
 
 
 
 
 
 
 
 
 
 
Renewals
 
5.2
%
 
4.8
%
 
4.8
%
 
4.7
%
 
4.9
%
 
New leases
 
3.6
%
 
2.0
%
 
3.4
%
 
4.8
%
 
2.5
%
 
Blended
 
4.7
%
 
3.7
%
 
4.3
%
 
4.7
%
 
4.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 





Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 18
logo_horizontala08.jpg

Supplemental Schedule 4
Portfolio Characteristics — As of and for the Quarter Ended March 31, 2019 (1)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average
 
 
 
 
 
Number of
 
Average
 
Average
 
Monthly
 
Percent of
 
 
 
Homes
 
Occupancy
 
Monthly Rent
 
Rent PSF
 
Revenue
 
Western United States:
 
 
 
 
 
 
 
 
 
 
 
Southern California
 
8,242

 
95.6
%
 
$
2,354

 
$
1.39

 
13.4
%
 
Northern California
 
4,489

 
95.9
%
 
2,031

 
1.32

 
6.6
%
 
Seattle
 
3,395

 
94.1
%
 
2,151

 
1.13

 
5.2
%
 
Phoenix
 
7,583

 
95.5
%
 
1,322

 
0.81

 
7.2
%
 
Las Vegas
 
2,680

 
96.3
%
 
1,568

 
0.79

 
3.0
%
 
Denver
 
2,237

 
92.2
%
 
1,948

 
1.09

 
3.1
%
 
Western US Subtotal
 
28,626

 
95.2
%
 
1,901

 
1.11

 
38.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida:
 
 
 
 
 
 
 
 
 
 
 
South Florida
 
8,899

 
94.2
%
 
2,161

 
1.17

 
13.2
%
 
Tampa
 
8,277

 
95.0
%
 
1,645

 
0.89

 
9.6
%
 
Orlando
 
5,942

 
94.4
%
 
1,623

 
0.88

 
6.7
%
 
Jacksonville
 
1,890

 
94.7
%
 
1,649

 
0.83

 
2.2
%
 
Florida Subtotal
 
25,008

 
94.5
%
 
1,823

 
0.98

 
31.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast United States:
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
12,239

 
95.4
%
 
1,484

 
0.72

 
12.6
%
 
Carolinas
 
4,716

 
95.5
%
 
1,563

 
0.72

 
5.1
%
 
Nashville
 
797

 
93.8
%
 
1,821

 
0.85

 
1.1
%
 
Southeast US Subtotal
 
17,752

 
95.3
%
 
1,520

 
0.73

 
18.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
 
 
Houston
 
2,351

 
93.7
%
 
1,544

 
0.79

 
2.5
%
 
Dallas
 
2,194

 
93.4
%
 
1,764

 
0.83

 
2.7
%
 
Texas Subtotal
 
4,545

 
93.5
%
 
1,650

 
0.81

 
5.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest United States:
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
3,269

 
90.2
%
 
1,969

 
1.20

 
4.3
%
 
Minneapolis
 
1,161

 
95.8
%
 
1,863

 
0.94

 
1.5
%
 
Midwest US Subtotal
 
4,430

 
91.6
%
 
1,941

 
1.12

 
5.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total / Average
 
80,361

 
94.7
%
 
$
1,781

 
$
0.96

 
100.0
%
 
Same Store Total / Average
 
73,704

 
96.5
%
 
$
1,784

 
$
0.96

 
93.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
All data is for the total portfolio, unless otherwise noted.





Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 19
logo_horizontala08.jpg

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, Q1 2019
 
# Homes
 
Q1 2019
 
Q1 2018
 
Change
 
Q1 2019
 
Q1 2018
 
Change
 
Q1 2019
 
Q1 2018
 
Change
 
Western United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern California
 
7,827

 
$
2,357

 
$
2,239

 
5.3
 %
 
96.7
%
 
96.0
%
 
0.7
 %
 
$
54,176

 
$
50,970

 
6.3
%
 
Northern California
 
3,910

 
2,025

 
1,899

 
6.6
 %
 
97.2
%
 
96.8
%
 
0.4
 %
 
23,550

 
21,962

 
7.2
%
 
Seattle
 
3,052

 
2,141

 
2,029

 
5.5
 %
 
96.9
%
 
96.4
%
 
0.5
 %
 
19,487

 
18,410

 
5.9
%
 
Phoenix
 
6,851

 
1,319

 
1,247

 
5.8
 %
 
97.2
%
 
97.2
%
 
—
 %
 
27,646

 
26,308

 
5.1
%
 
Las Vegas
 
2,560

 
1,571

 
1,494

 
5.2
 %
 
97.1
%
 
96.6
%
 
0.5
 %
 
12,099

 
11,568

 
4.6
%
 
Denver
 
1,961

 
1,944

 
1,863

 
4.3
 %
 
96.1
%
 
95.0
%
 
1.1
 %
 
11,376

 
10,852

 
4.8
%
 
Western US Subtotal
 
26,161

 
1,902

 
1,801

 
5.6
 %
 
96.9
%
 
96.5
%
 
0.4
 %
 
148,334

 
140,070

 
5.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Florida
 
8,157

 
2,182

 
2,121

 
2.9
 %
 
95.8
%
 
94.6
%
 
1.2
 %
 
52,148

 
50,193

 
3.9
%
 
Tampa
 
7,948

 
1,647

 
1,598

 
3.1
 %
 
96.0
%
 
94.8
%
 
1.2
 %
 
39,032

 
37,382

 
4.4
%
 
Orlando
 
5,541

 
1,616

 
1,537

 
5.1
 %
 
96.8
%
 
96.7
%
 
0.1
 %
 
27,008

 
25,650

 
5.3
%
 
Jacksonville
 
1,848

 
1,650

 
1,596

 
3.4
 %
 
95.8
%
 
95.9
%
 
(0.1
)%
 
9,128

 
8,878

 
2.8
%
 
Florida Subtotal
 
23,494

 
1,825

 
1,763

 
3.5
 %
 
96.1
%
 
95.3
%
 
0.8
 %
 
127,316

 
122,103

 
4.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
11,379

 
1,486

 
1,428

 
4.1
 %
 
96.2
%
 
95.9
%
 
0.3
 %
 
50,012

 
48,345

 
3.4
%
 
Carolinas
 
4,115

 
1,555

 
1,515

 
2.6
 %
 
96.6
%
 
94.4
%
 
2.2
 %
 
19,058

 
18,316

 
4.1
%
 
Nashville
 
577

 
1,884

 
1,888

 
(0.2
)%
 
96.2
%
 
89.4
%
 
6.8
 %
 
3,257

 
3,067

 
6.2
%
 
Southeast US Subtotal
 
16,071

 
1,518

 
1,465

 
3.6
 %
 
96.3
%
 
95.3
%
 
1.0
 %
 
72,327

 
69,728

 
3.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
1,919

 
1,550

 
1,535

 
1.0
 %
 
96.4
%
 
95.7
%
 
0.7
 %
 
8,864

 
8,585

 
3.2
%
 
Dallas
 
1,939

 
1,773

 
1,724

 
2.8
 %
 
96.0
%
 
94.4
%
 
1.6
 %
 
10,177

 
9,685

 
5.1
%
 
Texas Subtotal
 
3,858

 
1,662

 
1,629

 
2.0
 %
 
96.2
%
 
95.1
%
 
1.1
 %
 
19,041

 
18,270

 
4.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
2,969

 
1,983

 
1,956

 
1.4
 %
 
96.6
%
 
95.4
%
 
1.2
 %
 
17,176

 
16,688

 
2.9
%
 
Minneapolis
 
1,151

 
1,863

 
1,791

 
4.0
 %
 
96.5
%
 
96.3
%
 
0.2
 %
 
6,379

 
6,165

 
3.5
%
 
Midwest US Subtotal
 
4,120

 
1,950

 
1,910

 
2.1
 %
 
96.6
%
 
95.6
%
 
1.0
 %
 
23,555

 
22,853

 
3.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Store Total / Average
 
73,704

 
$
1,784

 
$
1,713

 
4.1
 %
 
96.5
%
 
95.7
%
 
0.8
 %
 
$
390,573

 
$
373,024

 
4.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 20
logo_horizontala08.jpg

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, Q1 2019
 
# Homes
 
Q1 2019
 
Q4 2018
 
Change
 
Q1 2019
 
Q4 2018
 
Change
 
Q1 2019
 
Q4 2018
 
Change
 
Western United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern California
 
7,827

 
$
2,357

 
$
2,332

 
1.1
 %
 
96.7
%
 
96.6
%
 
0.1
 %
 
$
54,176

 
$
53,662

 
1.0
 %
 
Northern California
 
3,910

 
2,025

 
2,004

 
1.0
 %
 
97.2
%
 
96.9
%
 
0.3
 %
 
23,550

 
23,356

 
0.8
 %
 
Seattle
 
3,052

 
2,141

 
2,119

 
1.0
 %
 
96.9
%
 
96.3
%
 
0.6
 %
 
19,487

 
19,205

 
1.5
 %
 
Phoenix
 
6,851

 
1,319

 
1,300

 
1.5
 %
 
97.2
%
 
96.7
%
 
0.5
 %
 
27,646

 
27,182

 
1.7
 %
 
Las Vegas
 
2,560

 
1,571

 
1,553

 
1.2
 %
 
97.1
%
 
96.1
%
 
1.0
 %
 
12,099

 
11,881

 
1.8
 %
 
Denver
 
1,961

 
1,944

 
1,931

 
0.7
 %
 
96.1
%
 
94.2
%
 
1.9
 %
 
11,376

 
11,092

 
2.6
 %
 
Western US Subtotal
 
26,161

 
1,902

 
1,881

 
1.1
 %
 
96.9
%
 
96.4
%
 
0.5
 %
 
148,334

 
146,378

 
1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Florida
 
8,157

 
2,182

 
2,170

 
0.6
 %
 
95.8
%
 
95.8
%
 
—
 %
 
52,148

 
51,950

 
0.4
 %
 
Tampa
 
7,948

 
1,647

 
1,635

 
0.7
 %
 
96.0
%
 
96.2
%
 
(0.2
)%
 
39,032

 
38,757

 
0.7
 %
 
Orlando
 
5,541

 
1,616

 
1,599

 
1.1
 %
 
96.8
%
 
96.8
%
 
—
 %
 
27,008

 
26,687

 
1.2
 %
 
Jacksonville
 
1,848

 
1,650

 
1,643

 
0.4
 %
 
95.8
%
 
95.6
%
 
0.2
 %
 
9,128

 
9,087

 
0.5
 %
 
Florida Subtotal
 
23,494

 
1,825

 
1,812

 
0.7
 %
 
96.1
%
 
96.2
%
 
(0.1
)%
 
127,316

 
126,481

 
0.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
11,379

 
1,486

 
1,474

 
0.8
 %
 
96.2
%
 
95.8
%
 
0.4
 %
 
50,012

 
49,459

 
1.1
 %
 
Carolinas
 
4,115

 
1,555

 
1,548

 
0.5
 %
 
96.6
%
 
95.5
%
 
1.1
 %
 
19,058

 
18,783

 
1.5
 %
 
Nashville
 
577

 
1,884

 
1,889

 
(0.3
)%
 
96.2
%
 
95.8
%
 
0.4
 %
 
3,257

 
3,266

 
(0.3
)%
 
Southeast US Subtotal
 
16,071

 
1,518

 
1,508

 
0.7
 %
 
96.3
%
 
95.7
%
 
0.6
 %
 
72,327

 
71,508

 
1.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
1,919

 
1,550

 
1,546

 
0.3
 %
 
96.4
%
 
94.7
%
 
1.7
 %
 
8,864

 
8,680

 
2.1
 %
 
Dallas
 
1,939

 
1,773

 
1,769

 
0.2
 %
 
96.0
%
 
94.2
%
 
1.8
 %
 
10,177

 
9,982

 
2.0
 %
 
Texas Subtotal
 
3,858

 
1,662

 
1,657

 
0.3
 %
 
96.2
%
 
94.5
%
 
1.7
 %
 
19,041

 
18,662

 
2.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
2,969

 
1,983

 
1,986

 
(0.2
)%
 
96.6
%
 
95.6
%
 
1.0
 %
 
17,176

 
17,048

 
0.8
 %
 
Minneapolis
 
1,151

 
1,863

 
1,848

 
0.8
 %
 
96.5
%
 
96.1
%
 
0.4
 %
 
6,379

 
6,318

 
1.0
 %
 
Midwest US Subtotal
 
4,120

 
1,950

 
1,947

 
0.2
 %
 
96.6
%
 
95.7
%
 
0.9
 %
 
23,555

 
23,366

 
0.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Store Total / Average
 
73,704

 
$
1,784

 
$
1,770

 
0.8
 %
 
96.5
%
 
96.0
%
 
0.5
 %
 
$
390,573

 
$
386,395

 
1.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 21
logo_horizontala08.jpg

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, Q1 2019
 
Q1 2019
 
Q1 2018
 
Change
 
Q1 2019
 
Q1 2018
 
Change
 
Q1 2019
 
Q1 2018
 
Change
 
Q1 2019
 
Q1 2018
 
Western United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern California
 
$
54,176

 
$
50,970

 
6.3
%
 
$
17,250

 
$
16,748

 
3.0
 %
 
$
36,926

 
$
34,222

 
7.9
 %
 
68.2
%
 
67.1
%
 
Northern California
 
23,550

 
21,962

 
7.2
%
 
6,860

 
6,734

 
1.9
 %
 
16,690

 
15,228

 
9.6
 %
 
70.9
%
 
69.3
%
 
Seattle
 
19,487

 
18,410

 
5.9
%
 
5,270

 
5,144

 
2.4
 %
 
14,217

 
13,266

 
7.2
 %
 
73.0
%
 
72.1
%
 
Phoenix
 
27,646

 
26,308

 
5.1
%
 
7,173

 
7,017

 
2.2
 %
 
20,473

 
19,291

 
6.1
 %
 
74.1
%
 
73.3
%
 
Las Vegas
 
12,099

 
11,568

 
4.6
%
 
2,951

 
2,875

 
2.6
 %
 
9,148

 
8,693

 
5.2
 %
 
75.6
%
 
75.1
%
 
Denver
 
11,376

 
10,852

 
4.8
%
 
2,486

 
1,481

 
67.9
 %
 
8,890

 
9,371

 
(5.1
)%
 
78.1
%
 
86.4
%
 
Western US Subtotal
 
148,334

 
140,070

 
5.9
%
 
41,990

 
39,999

 
5.0
 %
 
106,344

 
100,071

 
6.3
 %
 
71.7
%
 
71.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Florida
 
52,148

 
50,193

 
3.9
%
 
21,508

 
22,118

 
(2.8
)%
 
30,640

 
28,075

 
9.1
 %
 
58.8
%
 
55.9
%
 
Tampa
 
39,032

 
37,382

 
4.4
%
 
14,811

 
15,786

 
(6.2
)%
 
24,221

 
21,596

 
12.2
 %
 
62.1
%
 
57.8
%
 
Orlando
 
27,008

 
25,650

 
5.3
%
 
9,439

 
9,483

 
(0.5
)%
 
17,569

 
16,167

 
8.7
 %
 
65.1
%
 
63.0
%
 
Jacksonville
 
9,128

 
8,878

 
2.8
%
 
3,327

 
3,463

 
(3.9
)%
 
5,801

 
5,415

 
7.1
 %
 
63.6
%
 
61.0
%
 
Florida Subtotal
 
127,316

 
122,103

 
4.3
%
 
49,085

 
50,850

 
(3.5
)%
 
78,231

 
71,253

 
9.8
 %
 
61.4
%
 
58.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
50,012

 
48,345

 
3.4
%
 
15,846

 
15,628

 
1.4
 %
 
34,166

 
32,717

 
4.4
 %
 
68.3
%
 
67.7
%
 
Carolinas
 
19,058

 
18,316

 
4.1
%
 
5,426

 
5,457

 
(0.6
)%
 
13,632

 
12,859

 
6.0
 %
 
71.5
%
 
70.2
%
 
Nashville
 
3,257

 
3,067

 
6.2
%
 
607

 
829

 
(26.8
)%
 
2,650

 
2,238

 
18.4
 %
 
81.4
%
 
73.0
%
 
Southeast US Subtotal
 
72,327

 
69,728

 
3.7
%
 
21,879

 
21,914

 
(0.2
)%
 
50,448

 
47,814

 
5.5
 %
 
69.7
%
 
68.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
8,864

 
8,585

 
3.2
%
 
3,925

 
3,981

 
(1.4
)%
 
4,939

 
4,604

 
7.3
 %
 
55.7
%
 
53.6
%
 
Dallas
 
10,177

 
9,685

 
5.1
%
 
4,071

 
4,192

 
(2.9
)%
 
6,106

 
5,493

 
11.2
 %
 
60.0
%
 
56.7
%
 
Texas Subtotal
 
19,041

 
18,270

 
4.2
%
 
7,996

 
8,173

 
(2.2
)%
 
11,045

 
10,097

 
9.4
 %
 
58.0
%
 
55.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
17,176

 
16,688

 
2.9
%
 
7,331

 
7,574

 
(3.2
)%
 
9,845

 
9,114

 
8.0
 %
 
57.3
%
 
54.6
%
 
Minneapolis
 
6,379

 
6,165

 
3.5
%
 
2,001

 
1,902

 
5.2
 %
 
4,378

 
4,263

 
2.7
 %
 
68.6
%
 
69.1
%
 
Midwest US Subtotal
 
23,555

 
22,853

 
3.1
%
 
9,332

 
9,476

 
(1.5
)%
 
14,223

 
13,377

 
6.3
 %
 
60.4
%
 
58.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Store Total / Average
 
$
390,573

 
$
373,024

 
4.7
%
 
$
130,282

 
$
130,412

 
(0.1
)%
 
$
260,291

 
$
242,612

 
7.3
 %
 
66.6
%
 
65.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 22
logo_horizontala08.jpg

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, Q1 2019
 
Q1 2019
 
Q4 2018
 
Change
 
Q1 2019
 
Q4 2018
 
Change
 
Q1 2019
 
Q4 2018
 
Change
 
Q1 2019
 
Q4 2018
 
Western United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern California
 
$
54,176

 
$
53,662

 
1.0
 %
 
$
17,250

 
$
17,544

 
(1.7
)%
 
$
36,926

 
$
36,118

 
2.2
 %
 
68.2
%
 
67.3
%
 
Northern California
 
23,550

 
23,356

 
0.8
 %
 
6,860

 
7,005

 
(2.1
)%
 
16,690

 
16,351

 
2.1
 %
 
70.9
%
 
70.0
%
 
Seattle
 
19,487

 
19,205

 
1.5
 %
 
5,270

 
5,499

 
(4.2
)%
 
14,217

 
13,706

 
3.7
 %
 
73.0
%
 
71.4
%
 
Phoenix
 
27,646

 
27,182

 
1.7
 %
 
7,173

 
6,887

 
4.2
 %
 
20,473

 
20,295

 
0.9
 %
 
74.1
%
 
74.7
%
 
Las Vegas
 
12,099

 
11,881

 
1.8
 %
 
2,951

 
3,158

 
(6.6
)%
 
9,148

 
8,723

 
4.9
 %
 
75.6
%
 
73.4
%
 
Denver
 
11,376

 
11,092

 
2.6
 %
 
2,486

 
2,125

 
17.0
 %
 
8,890

 
8,967

 
(0.9
)%
 
78.1
%
 
80.8
%
 
Western US Subtotal
 
148,334

 
146,378

 
1.3
 %
 
41,990

 
42,218

 
(0.5
)%
 
106,344

 
104,160

 
2.1
 %
 
71.7
%
 
71.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
South Florida
 
52,148

 
51,950

 
0.4
 %
 
21,508

 
21,801

 
(1.3
)%
 
30,640

 
30,149

 
1.6
 %
 
58.8
%
 
58.0
%
 
Tampa
 
39,032

 
38,757

 
0.7
 %
 
14,811

 
15,252

 
(2.9
)%
 
24,221

 
23,505

 
3.0
 %
 
62.1
%
 
60.6
%
 
Orlando
 
27,008

 
26,687

 
1.2
 %
 
9,439

 
9,643

 
(2.1
)%
 
17,569

 
17,044

 
3.1
 %
 
65.1
%
 
63.9
%
 
Jacksonville
 
9,128

 
9,087

 
0.5
 %
 
3,327

 
3,155

 
5.5
 %
 
5,801

 
5,932

 
(2.2
)%
 
63.6
%
 
65.3
%
 
Florida Subtotal
 
127,316

 
126,481

 
0.7
 %
 
49,085

 
49,851

 
(1.5
)%
 
78,231

 
76,630

 
2.1
 %
 
61.4
%
 
60.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
50,012

 
49,459

 
1.1
 %
 
15,846

 
15,628

 
1.4
 %
 
34,166

 
33,831

 
1.0
 %
 
68.3
%
 
68.4
%
 
Carolinas
 
19,058

 
18,783

 
1.5
 %
 
5,426

 
5,441

 
(0.3
)%
 
13,632

 
13,342

 
2.2
 %
 
71.5
%
 
71.0
%
 
Nashville
 
3,257

 
3,266

 
(0.3
)%
 
607

 
759

 
(20.0
)%
 
2,650

 
2,507

 
5.7
 %
 
81.4
%
 
76.8
%
 
Southeast US Subtotal
 
72,327

 
71,508

 
1.1
 %
 
21,879

 
21,828

 
0.2
 %
 
50,448

 
49,680

 
1.5
 %
 
69.7
%
 
69.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
8,864

 
8,680

 
2.1
 %
 
3,925

 
3,934

 
(0.2
)%
 
4,939

 
4,746

 
4.1
 %
 
55.7
%
 
54.7
%
 
Dallas
 
10,177

 
9,982

 
2.0
 %
 
4,071

 
4,296

 
(5.2
)%
 
6,106

 
5,686

 
7.4
 %
 
60.0
%
 
57.0
%
 
Texas Subtotal
 
19,041

 
18,662

 
2.0
 %
 
7,996

 
8,230

 
(2.8
)%
 
11,045

 
10,432

 
5.9
 %
 
58.0
%
 
55.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
17,176

 
17,048

 
0.8
 %
 
7,331

 
7,443

 
(1.5
)%
 
9,845

 
9,605

 
2.5
 %
 
57.3
%
 
56.3
%
 
Minneapolis
 
6,379

 
6,318

 
1.0
 %
 
2,001

 
1,944

 
2.9
 %
 
4,378

 
4,374

 
0.1
 %
 
68.6
%
 
69.2
%
 
Midwest US Subtotal
 
23,555

 
23,366

 
0.8
 %
 
9,332

 
9,387

 
(0.6
)%
 
14,223

 
13,979

 
1.7
 %
 
60.4
%
 
59.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Same Store Total / Average
 
$
390,573

 
$
386,395

 
1.1
 %
 
$
130,282

 
$
131,514

 
(0.9
)%
 
$
260,291

 
$
254,881

 
2.1
 %
 
66.6
%
 
66.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 23
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Supplemental Schedule 5(c)
Same Store Lease-Over-Lease Rent Growth
(unaudited)
 
 
 
 
 
 
Rental Rate Growth
 
 
 
 
Q1 2019
 
 
 
 
Renewal
 
New
 
Blended
 
 
 
 
Leases
 
Leases
 
Average
 
 
Western United States:
 
 
 
 
 
 
 
 
Southern California
 
6.8
%
 
6.5
 %
 
6.7
%
 
 
Northern California
 
8.0
%
 
9.4
 %
 
8.4
%
 
 
Seattle
 
7.3
%
 
6.1
 %
 
6.9
%
 
 
Phoenix
 
6.5
%
 
9.4
 %
 
7.5
%
 
 
Las Vegas
 
5.7
%
 
6.9
 %
 
6.0
%
 
 
Denver
 
4.8
%
 
3.9
 %
 
4.5
%
 
 
Western US Subtotal
 
6.8
%
 
7.2
 %
 
6.9
%
 
 
 
 
 
 
 
 
 
 
 
Florida:
 
 
 
 
 
 
 
 
South Florida
 
4.6
%
 
(0.3
)%
 
3.1
%
 
 
Tampa
 
4.5
%
 
1.9
 %
 
3.5
%
 
 
Orlando
 
5.4
%
 
5.6
 %
 
5.5
%
 
 
Jacksonville
 
3.9
%
 
3.4
 %
 
3.7
%
 
 
Florida Subtotal
 
4.7
%
 
2.0
 %
 
3.8
%
 
 
 
 
 
 
 
 
 
 
 
Southeast United States:
 
 
 
 
 
 
 
 
Atlanta
 
4.6
%
 
3.5
 %
 
4.2
%
 
 
Carolinas
 
3.2
%
 
(1.0
)%
 
1.7
%
 
 
Nashville
 
4.2
%
 
(3.2
)%
 
1.3
%
 
 
Southeast US Subtotal
 
4.2
%
 
2.1
 %
 
3.5
%
 
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
Houston
 
3.1
%
 
(2.3
)%
 
1.6
%
 
 
Dallas
 
4.1
%
 
1.2
 %
 
3.2
%
 
 
Texas Subtotal
 
3.6
%
 
(0.3
)%
 
2.4
%
 
 
 
 
 
 
 
 
 
 
 
Midwest United States:
 
 
 
 
 
 
 
 
Chicago
 
1.9
%
 
(3.7
)%
 
0.6
%
 
 
Minneapolis
 
3.7
%
 
0.7
 %
 
2.7
%
 
 
Midwest US Subtotal
 
2.4
%
 
(2.0
)%
 
1.3
%
 
 
 
 
 
 
 
 
 
 
 
Same Store Total / Average
 
5.2
%
 
3.6
 %
 
4.7
%
 
 
 
 
 
 
 
 
 
 
 





Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 24
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Supplemental Schedule 6
Same Store Cost to Maintain
($ in thousands, except per home amounts) (unaudited)
 
Total ($ 000)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Recurring operating expenses (gross):
 
 
 
 
 
 
 
 
 
 
 
R&M OpEx
 
$
17,380

 
$
17,650

 
$
23,676

 
$
21,718

 
$
18,929

 
Turn OpEx
 
8,368

 
10,024

 
14,269

 
13,317

 
11,262

 
Total recurring operating expense (gross)
 
25,748

 
27,674

 
37,945

 
35,035

 
30,191

 
R&M + Turn recoveries
 
(3,044
)
 
(2,866
)
 
(3,473
)
 
(3,230
)
 
(2,226
)
 
Total recurring operating expenses (net)
 
$
22,704

 
$
24,808

 
$
34,472

 
$
31,805

 
$
27,965

 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring capital expenditures:
 
 
 
 
 
 
 
 
 
 
 
R&M CapEx
 
$
17,778

 
$
18,584

 
$
27,028

 
$
18,952

 
$
14,407

 
Turn CapEx
 
5,274

 
6,018

 
7,696

 
6,266

 
7,941

 
Total recurring capital expenditures
 
$
23,052

 
$
24,602

 
$
34,724

 
$
25,218

 
$
22,348

 
 
 
 
 
 
 
 
 
 
 
 
 
Cost to maintain (gross):
 
 
 
 
 
 
 
 
 
 
 
R&M OpEx + CapEx
 
$
35,158

 
$
36,234

 
$
50,704

 
$
40,670

 
$
33,336

 
Turn OpEx + CapEx
 
13,642

 
16,042

 
21,965

 
19,583

 
19,203

 
Total cost to maintain (gross)
 
48,800

 
52,276

 
72,669

 
60,253

 
52,539

 
R&M + Turn recoveries
 
(3,044
)
 
(2,866
)
 
(3,473
)
 
(3,230
)
 
(2,226
)
 
Total cost to maintain (net)
 
$
45,756

 
$
49,410

 
$
69,196

 
$
57,023

 
$
50,313

 
 
 
 
 
 
 
 
 
 
 
 
 
Per Home ($)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Total cost to maintain (gross)
 
$
662

 
$
709

 
$
986

 
$
817

 
$
713

 
R&M + Turn recoveries
 
(41
)
 
(39
)
 
(47
)
 
(44
)
 
(30
)
 
Total cost to maintain (net)
 
$
621

 
$
670

 
$
939

 
$
773

 
$
683

 
 
 
 
 
 
 
 
 
 
 
 
 

Total Portfolio Capital Expenditure Detail
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Total ($ 000)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Recurring CapEx
 
$
25,111

 
$
29,093

 
$
39,399

 
$
28,848

 
$
25,393

 
Value Enhancing CapEx
 
3,104

 
5,294

 
5,296

 
3,396

 
4,876

 
Initial Renovation CapEx
 
7,816

 
11,238

 
9,721

 
9,819

 
13,429

 
Disposition CapEx (1)
 
1,994

 
—

 
—

 
—

 
—

 
Total Capital Expenditures
 
$
38,025

 
$
45,625

 
$
54,416

 
$
42,063

 
$
43,698

 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Commencing in 2019, capital expenditures related to the preparation of homes for disposition are reported separately as Disposition CapEx, rather than included in Recurring CapEx. For periods prior to Q1 2019, Disposition CapEx was included in Recurring CapEx. The amount of Disposition CapEx included in Recurring CapEx for the full year 2018 was less than $3,600.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 25
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Supplemental Schedule 7
Adjusted Property Management and G&A Reconciliation
($ in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Property Management Expense
 
Q1 2019
 
Q1 2018
 
 
Property management expense (GAAP)
 
$
15,160

 
$
17,164

 
 
Adjustments:
 
 
 
 
 
 
Share-based compensation expense (1)
 
(687
)
 
(1,944
)
 
 
Adjusted property management expense
 
$
14,473

 
$
15,220

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted G&A Expense
 
Q1 2019
 
Q1 2018
 
 
G&A expense (GAAP)
 
$
26,538

 
$
27,636

 
 
Adjustments:
 
 
 
 
 
 
Share-based compensation expense (2)
 
(4,920
)
 
(7,554
)
 
 
Merger and transaction-related expenses
 
(2,795
)
 
(4,367
)
 
 
Severance expense
 
(6,969
)
 
(2,659
)
 
 
Adjusted G&A expense
 
$
11,854

 
$
13,056

 
 
 
 
 
 
 
 
 
(1)
For Q1 2019 and Q1 2018, includes $136 and $901, respectively, related to IPO and pre-IPO grants.
(2)
For Q1 2019, includes $360 related to IPO and pre-IPO grants and $2,001 related to merger grants. For Q1 2018, includes $2,268 related to IPO and pre-IPO grants and $763 related to merger grants.


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 26
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Supplemental Schedule 8
Acquisitions and Dispositions — Q1 2019
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12/31/2018
 
Q1 2019 Acquisitions (1)
 
Q1 2019 Dispositions (2)
 
3/31/2019
 
 
 
Homes
 
Homes
 
Avg. Estimated
 
Homes
 
Average
 
Homes
 
 
 
Owned
 
Acq.
 
Cost Basis
 
Sold
 
Sales Price
 
Owned
 
Western United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
Southern California
 
8,293

 
—

 
$
—

 
51

 
$
414,892

 
8,242

 
Northern California
 
4,529

 
—

 
—

 
40

 
297,697

 
4,489

 
Seattle
 
3,402

 
31

 
365,116

 
38

 
320,511

 
3,395

 
Phoenix
 
7,546

 
53

 
281,430

 
16

 
174,738

 
7,583

 
Las Vegas
 
2,686

 
—

 
—

 
6

 
266,583

 
2,680

 
Denver
 
2,229

 
23

 
400,945

 
15

 
304,200

 
2,237

 
Western US Subtotal
 
28,685

 
107

 
331,366

 
166

 
326,537

 
28,626

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida:
 
 
 
 
 
 
 
 
 
 
 
 
 
South Florida
 
8,984

 
—

 
—

 
85

 
249,522

 
8,899

 
Tampa
 
8,359

 
4

 
250,046

 
86

 
157,943

 
8,277

 
Orlando
 
5,919

 
55

 
285,778

 
32

 
190,005

 
5,942

 
Jacksonville
 
1,910

 
—

 
—

 
20

 
234,264

 
1,890

 
Florida Subtotal
 
25,172

 
59

 
283,355

 
223

 
204,296

 
25,008

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
Atlanta
 
12,250

 
20

 
239,416

 
31

 
187,286

 
12,239

 
Carolinas
 
4,725

 
7

 
236,831

 
16

 
189,475

 
4,716

 
Nashville
 
798

 
—

 
—

 
1

 
67,500

 
797

 
Southeast US Subtotal
 
17,773

 
27

 
238,746

 
48

 
185,520

 
17,752

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas:
 
 
 
 
 
 
 
 
 
 
 
 
 
Houston
 
2,390

 
—

 
—

 
39

 
190,963

 
2,351

 
Dallas
 
2,187

 
15

 
227,108

 
8

 
224,425

 
2,194

 
Texas Subtotal
 
4,577

 
15

 
227,108

 
47

 
196,659

 
4,545

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest United States:
 
 
 
 
 
 
 
 
 
 
 
 
 
Chicago
 
3,437

 
—

 
—

 
168

 
217,161

 
3,269

 
Minneapolis
 
1,163

 
—

 
—

 
2

 
260,000

 
1,161

 
Midwest US Subtotal
 
4,600

 
—

 
—

 
170

 
217,665

 
4,430

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total / Average
 
80,807

 
208

 
$
298,206

 
654

 
$
236,872

 
80,361

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 1.5%. Disposition cap rate represents actual NOI recognized in the 12 months prior to the month of disposition, divided by sales price.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 27
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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 recurring repairs and maintenance and recurring turnover expenses (gross or net of resident reimbursements, as indicated in tables presented) and recurring capital expenditures.

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 operating as real estate companies which report an EBITDA performance measure also report EBITDAre in all financial reports for periods beginning after December 31, 2017. 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; IPO related expenses; merger and transaction-related expenses; severance; casualty losses, net; acquisition costs; and interest income and other miscellaneous 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.
Q1 2019 Earnings Release and Supplemental Information — page 28
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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 (loss) 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 (loss) 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). NOI excludes: interest expense; depreciation and amortization; general and administrative expense; property management expense; impairment and other; acquisition costs; (gain) loss on sale of property, net of tax; and interest income and other miscellaneous 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 (loss) 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.
Q1 2019 Earnings Release and Supplemental Information — page 29
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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 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.

Same Store / Same Store Portfolio
Same Store or Same Store portfolio includes, for a given reporting period, homes that have been stabilized and seasoned (whether under Invitation Homes ownership or Starwood Waypoint Homes ownership), 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, and 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.

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.

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.
Q1 2019 Earnings Release and Supplemental Information — page 30
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Reconciliation of Non-GAAP Measures:
Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, Quarterly
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Total revenues (total portfolio)
 
$
435,500

 
$
432,616

 
$
434,251

 
$
432,426

 
$
423,669

 
Non-Same Store revenues
 
(29,682
)
 
(32,627
)
 
(38,688
)
 
(39,762
)
 
(37,768
)
 
Same Store revenues
 
405,818

 
399,989

 
395,563

 
392,664

 
385,901

 
Same Store resident recoveries
 
(15,245
)
 
(13,594
)
 
(13,683
)
 
(12,244
)
 
(12,877
)
 
Same Store Core revenues
 
$
390,573

 
$
386,395

 
$
381,880

 
$
380,420

 
$
373,024

 
 
 
 
 
 
 
 
 
 
 
 
 


Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Property operating and maintenance expenses (total portfolio)
 
$
160,346

 
$
159,200

 
$
170,021

 
$
165,423

 
$
160,767

 
Non-Same Store operating expenses
 
(14,819
)
 
(14,092
)
 
(17,451
)
 
(17,958
)
 
(17,478
)
 
Same Store operating expenses
 
145,527

 
145,108

 
152,570

 
147,465

 
143,289

 
Same Store resident recoveries
 
(15,245
)
 
(13,594
)
 
(13,683
)
 
(12,244
)
 
(12,877
)
 
Same Store Core operating expenses
 
$
130,282

 
$
131,514

 
$
138,887

 
$
135,221

 
$
130,412

 
 
 
 
 
 
 
 
 
 
 
 
 


Reconciliation of Net Income (Loss) to NOI and Same Store NOI, Quarterly
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
 
Net income (loss) available to common stockholders
 
$
20,716

 
$
25,078

 
$
824

 
$
(14,155
)
 
$
(17,491
)
 
Net income available to participating securities
 
106

 
190

 
196

 
209

 
222

 
Non-controlling interests
 
347

 
446

 
21

 
(242
)
 
(311
)
 
Interest expense
 
93,983

 
96,506

 
97,564

 
97,226

 
92,299

 
Depreciation and amortization
 
133,609

 
130,220

 
139,371

 
146,450

 
144,500

 
General and administrative
 
26,538

 
25,340

 
21,152

 
24,636

 
27,636

 
Property management expense
 
15,160

 
17,281

 
16,692

 
14,348

 
17,164

 
Impairment and other
 
5,392

 
7,343

 
3,252

 
4,103

 
6,121

 
Gain on sale of property, net of tax
 
(17,572
)
 
(28,727
)
 
(11,512
)
 
(3,941
)
 
(5,502
)
 
Other, net
 
(3,125
)
 
(261
)
 
(3,330
)
 
(1,631
)
 
(1,736
)
 
NOI (total portfolio)
 
275,154

 
273,416

 
264,230

 
267,003

 
262,902

 
Non-Same Store NOI
 
(14,863
)
 
(18,535
)
 
(21,237
)
 
(21,804
)
 
(20,290
)
 
Same Store NOI
 
$
260,291

 
$
254,881

 
$
242,993

 
$
245,199

 
$
242,612

 
 
 
 
 
 
 
 
 
 
 
 
 




Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 31
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Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, and Adjusted EBITDAre
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q1 2018
 
% Change
 
 
Net income (loss) available to common stockholders
 
$
20,716

 
$
(17,491
)
 
 
 
 
Net income available to participating securities
 
106

 
222

 
 
 
 
Non-controlling interests
 
347

 
(311
)
 
 
 
 
Interest expense
 
93,983

 
92,299

 
 
 
 
Depreciation and amortization
 
133,609

 
144,500

 
 
 
 
EBITDA
 
248,761

 
219,219

 
 
 
 
Gain on sale of property, net of tax
 
(17,572
)
 
(5,502
)
 
 
 
 
Impairment on depreciated real estate investments
 
3,253

 
603

 
 
 
 
EBITDAre
 
234,442

 
214,320

 
 
 
 
Share-based compensation expense
 
5,607

 
9,498

 
 
 
 
Merger and transaction-related expenses
 
2,795

 
4,367

 
 
 
 
Severance
 
6,969

 
2,659

 
 
 
 
Casualty losses, net
 
2,139

 
5,518

 
 
 
 
Other, net
 
(3,125
)
 
(1,736
)
 
 
 
 
Adjusted EBITDAre
 
$
248,827

 
$
234,626

 
6.1
%
 
 
 
 
 
 
 
 
 
 
 


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 32
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Reconciliation of Net Debt / Annualized Adjusted EBITDAre
(in thousands, except for ratio) (unaudited)
 
 
 
 
 
 
As of
 
 
 
March 31, 2019
 
Mortgage loans, net
 
$
7,029,768

 
Term loan facility, net
 
1,491,582

 
Revolving facility
 
—

 
Convertible senior notes, net
 
559,575

 
Total Debt per Balance Sheet
 
9,080,925

 
Retained and repurchased certificates
 
(361,151
)
 
Cash, ex-security deposits (1)
 
(200,361
)
 
Deferred financing costs
 
61,404

 
Unamortized discounts on note payable
 
18,321

 
Net Debt (A) (2)
 
$
8,599,138

 
2019 convertible senior notes, net
 
(228,932
)
 
Unamortized discounts related to 2019 convertible senior notes
 
(1,059
)
 
Pro Forma Net Debt (B) (2)(3)
 
$
8,369,147

 
 
 
 
 
 
 
 
 
 
 
For the Three
 
 
 
Months Ended
 
 
 
March 31, 2019
 
Adjusted EBITDAre (C)
 
$
248,827

 
 
 
 
 
Annualized Adjusted EBITDAre (D = C x 4)
 
$
995,308

 
 
 
 
 
Net Debt / Annualized Adjusted EBITDAre (A / D)
 
8.6
x
 
 
 
 
 
Pro Forma Net Debt / Annualized Adjusted EBITDAre (B / D) (2)(3)
 
8.4
x
 
 
 
 
 
(1)
Represents cash and cash equivalents and the non-security deposit portion of restricted cash.
(2)
Does not reflect the impact of April 2019 voluntary prepayments of $70,000 of securitization loans.
(3)
In December 2018, the Company gave notice of intent to settle conversions of its 3.0% Convertible Notes due July 1, 2019 with common shares. The par value of the 2019 Convertible Notes outstanding is $230 million. For all note holders electing conversion on or before June 27, 2019, the 2019 Convertible Notes will be exchanged for common shares according to a prescribed conversion ratio. Pro Forma Net Debt and Pro Forma Net Debt / Annualized Adjusted EBITDAre assume that net debt is reduced for the impact of the conversion of the 2019 Convertible Notes.



Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 33
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Reconciliation of Fixed Charge Coverage Ratio
(in thousands, except for ratio) (unaudited)
 
 
 
 
 
 
For the Three
 
 
 
Months Ended
 
 
 
March 31, 2019
 
Interest expense
 
$
93,983

 
Noncash interest expense
 
(14,865
)
 
Fixed charges (A)
 
$
79,118

 
 
 
 
 
Adjusted EBITDAre (B)
 
$
248,827

 
 
 
 
 
Fixed charge coverage ratio (B / A)
 
3.1
x
 
 
 
 
 


Components of Noncash Interest Expense
(in thousands) (unaudited)
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q1 2018
 
 
Amortization of discounts on notes payable
 
$
2,364

 
$
2,254

 
 
Amortization of deferred financing costs
 
10,150

 
3,995

 
 
Change in fair value of interest rate derivatives
 
33

 
(253
)
 
 
Amortization of swap fair value at designation
 
2,318

 
2,499

 
 
Total non-cash interest expense
 
$
14,865

 
$
8,495

 
 
 
 
 
 
 
 
 


Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.
Q1 2019 Earnings Release and Supplemental Information — page 34