Investments In Unconsolidated Joint Ventures

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments In Unconsolidated Joint Ventures

The following table summarizes our investments in unconsolidated joint ventures, which are accounted for using the equity method model of accounting, as of September 30, 2022 and December 31, 2021:


		Number of Properties Owned		Carrying Value
	Ownership Percentage	September 30, 2022	December 31, 2021	September 30, 2022		December 31, 2021
Pathway Property Company(1)	100.0%	328	N/A	$	133,189	$	—
2020 Rockpoint JV(2)	20.0%	2,607	2,004	72,122		54,579
FNMA(3)	10.0%	502	522	49,449		52,791
Pathway Operating Company(4)	15.0%	N/A	N/A	21,331		23,025
2022 Rockpoint JV(5)	16.7%	131	N/A	10,806		—
Total				$	286,897	$	130,395

(1)Owns homes in markets within the Western United States, Southeast United States, Florida, and Texas.

(2)Owns homes in markets within the Western United States, Southeast United States, Florida, and Texas.

(3)Owns homes primarily located in Arizona, California, and Nevada.

(4)Represents an investment in an operating company that provides a technology platform and asset management services.

(5)Owns homes in markets within the Western United States, Southeast United States, Florida, and Texas.

In November 2021, we entered into agreements with Pathway Homes and its affiliates, among others, to form a joint venture that will provide unique opportunities for customers to identify a home whereby they are able to first lease and then, if they choose, purchase the home in the future. We have fully funded our capital commitment to the operating company (“Pathway Operating Company”) which provides the technology platform and asset management services for the entity that owns and leases the homes (“Pathway Property Company”). Pathway Homes and its affiliates are responsible for the operations and management of Pathway Operating Company, and we do not have a controlling interest in Pathway Operating

Company. As of September 30, 2022, we have funded $136,700 to Pathway Property Company, and our remaining equity commitment is $88,300. A wholly owned subsidiary of INVH LP provides property management and renovation oversight services for and earns fees from the homes owned by Pathway Property Company. As the asset manager, Pathway Operating Company is responsible for the operations and management of Pathway Property Company, and we do not have a controlling interest in Pathway Property Company.

In October 2020, we entered into an agreement with Rockpoint Group, L.L.C. (“Rockpoint”) to form a joint venture that will acquire homes in markets where we already own homes (the “2020 Rockpoint JV”). As of February 2021, the joint venture is funded with a combination of debt and equity, and we have guaranteed the funding of certain tax, insurance, and non-conforming property reserves related to the joint venture’s financing. As of September 30, 2022, we have fully funded our capital commitment to the 2020 Rockpoint JV. The administrative member of the 2020 Rockpoint JV is a wholly owned subsidiary of INVH LP and is responsible for the operations and management of the properties, subject to Rockpoint’s approval of major decisions. We earn property and asset management fees for the 2020 Rockpoint JV.

We acquired our interest in the joint venture with the Federal National Mortgage Association (“FNMA”) via the SWH merger. The managing member of the FNMA joint venture is a wholly owned subsidiary of INVH LP and is responsible for the operations and management of the properties, subject to FNMA’s approval of major decisions. We earn property and asset management fees for the FNMA joint venture.

In March 2022, we entered into a second agreement with Rockpoint to form a joint venture that will acquire homes in premium locations and at higher price points relative to our other investments in single-family residential properties (the “2022 Rockpoint JV”). As of September 30, 2022, we have funded $10,000 to the 2022 Rockpoint JV, and our remaining equity commitment is $40,000. The joint venture is funded with a combination of debt and equity, and we have guaranteed the funding of certain tax, insurance, and non-conforming property reserves related to the joint venture’s financing. The administrative member of the 2022 Rockpoint JV is a wholly owned subsidiary of INVH LP and is responsible for the operations and management of the properties, subject to Rockpoint’s approval of major decisions. We earn property and asset management fees for the 2022 Rockpoint JV.

We recorded income (loss) from these investments for the three months ended September 30, 2022 and 2021, totaling $(849) and $202, respectively, and for the nine months ended September 30, 2022 and 2021, totaling $(5,870) and $564, respectively, which is included in income (loss) from investments in unconsolidated joint ventures in the condensed consolidated statements of operations.

The fees earned from our joint ventures (as described above) are related party transactions. For the three months ended September 30, 2022 and 2021, we earned $3,284 and $1,354, respectively, and for the nine months ended September 30, 2022 and 2021, we earned $8,154 and $3,140, respectively, of management fees which are included in management fee revenues in the condensed consolidated statements of operations.