Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), the nation's premier single-family home leasing company, today announced its Q3 2021 financial and operating results.

Third Quarter 2021 Highlights

  • Year over year, total revenues increased 11.0% to $510 million, and property operating and maintenance costs increased 3.6% to $184 million.
  • Net income available to common stockholders totaled $69 million or $0.12 per diluted common share.
  • Year over year, Core FFO per share increased 27.0% to $0.38, and AFFO per share increased 32.7% to $0.32.
  • Same Store NOI grew 11.9% year over year on 7.9% Same Store Core Revenues growth and 0.6% Same Store Core Operating Expenses growth.
  • Same Store Average Occupancy was 98.1%, up 30 basis points year over year.
  • Same Store new lease rent growth of 18.4% and Same Store renewal rent growth of 7.8% drove Same Store blended rent growth of 10.6%, up 660 basis points year over year.
  • Revenue collections were approximately 98% of the Company's historical average collection rate. Bad debt as a percentage of gross rental revenue decreased from 2.0% in 3Q 2020 to 1.0% in 3Q 2021.
  • The Company accelerated its acquisition pace in 3Q 2021. Acquisitions by the Company and the Company's joint ventures totaled 1,684 homes for $722 million while dispositions totaled 161 homes for $57 million.
  • The Company issued and sold 17,451,969 shares of common stock for net proceeds of $693 million. Subsequent to quarter end, in October 2021, the Company sold an additional 1,875,000 shares pursuant to the underwriters’ full exercise of the option to purchase additional shares, generating net proceeds of $75 million. The proceeds from these issuances were and will be used primarily for general corporate purposes, including acquisitions.
  • As previously announced in August 2021, the Company closed its first public bond offering of $650 million aggregate principal with a fixed coupon of 2.00%. Net proceeds were used to voluntarily prepay secured indebtedness.
  • In conjunction with this release, the Company is raising its full year 2021 guidance as follows: increasing and narrowing its Same Store Core Revenues growth by 87.5 basis points at the midpoint to 6.375%; decreasing its Same Store Core Operating Expenses growth by 150 basis points at the midpoint to 1.5%; and increasing its Same Store NOI growth by 200 basis points at the midpoint to 9.0%. The Company is also raising its full year 2021 guidance for Core FFO per share by $0.05 at the midpoint to $1.49 and for AFFO per share by $0.04 at the midpoint to $1.28. Additionally, as previously announced, the Company increased its full year 2021 acquisition target from $1.0 billion to between $1.7 billion and $1.8 billion.
  • The Company is pleased to announce that it has achieved a 13.2% increase on its Global Real Estate Sustainability Benchmark (“GRESB”) score from 2020 to 2021. As a result, the Company has surpassed its sustainability performance threshold to trigger a one basis point improvement in pricing on its revolving line of credit. The Company remains committed to sustainability transparency and improving performance. For additional information, please visit www.invitationhomes.com/sustainability.

President & Chief Executive Officer Dallas Tanner comments:

"We are pleased to announce another strong quarter of operating and financial results. Fundamentals remain as supportive as ever, and we believe our ability to identify and capture accretive growth opportunities that complement our portfolio of well-located, high-quality homes is second to none. As a result of these attributes and our execution, including our premier resident experience from our best-in-class teams, we have once again raised our full year guidance."

Financial Results

Net Income, FFO, Core FFO, and AFFO Per Share — Diluted(1)

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q3 2020

 

YTD 2021

 

YTD 2020

 

Net income

 

$

0.12

 

 

$

0.06

 

 

$

0.33

 

 

$

0.23

 

 

FFO

 

0.35

 

 

0.27

 

 

1.00

 

 

0.89

 

 

Core FFO

 

0.38

 

 

0.30

 

 

1.11

 

 

0.96

 

 

AFFO

 

0.32

 

 

0.24

 

 

0.95

 

 

0.81

 

 

 

 

 

 

 

 

 

 

 

 

(1)

See "Reconciliation of FFO, Core FFO, and AFFO," footnotes (1) and (2), for details on the treatment of convertible notes in each specific period presented in the table.

Net Income

Net income per share in the third quarter of 2021 was $0.12, compared to net income per share of $0.06 in the third quarter of 2020. Total revenues and total property operating and maintenance expenses in the third quarter of 2021 were $510 million and $184 million, respectively, compared to $459 million and $178 million, respectively, in the third quarter of 2020.

Net income per share in YTD 2021 was $0.33, compared to net income per share of $0.23 in YTD 2020. Total revenues and total property operating and maintenance expenses in YTD 2021 were $1,476 million and $528 million, respectively, compared to $1,359 million and $512 million, respectively, in YTD 2020.

Core FFO

Year over year, Core FFO per share in the third quarter of 2021 increased 27.0% to $0.38, primarily due to NOI growth and interest expense savings.

Year over year, Core FFO per share in YTD 2021 increased 14.9% to $1.11, primarily due to NOI growth and interest expense savings.

AFFO

Year over year, AFFO per share in the third quarter of 2021 increased 32.7% to $0.32, primarily due to the increase in Core FFO per share described above.

Year over year, AFFO per share in YTD 2021 increased 18.1% to $0.95, primarily due to the increase in Core FFO per share described above.

Operating Results

Same Store Operating Results Snapshot

 

 

 

 

 

 

 

 

 

Number of homes in Same Store Portfolio:

 

72,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q3 2020

 

YTD 2021

 

YTD 2020

Core Revenues growth (year over year)

 

7.9

%

 

 

 

5.4

%

 

 

Core Operating Expenses growth (year over year)

 

0.6

%

 

 

 

(0.3)

%

 

 

NOI growth (year over year)

 

11.9

%

 

 

 

8.3

%

 

 

 

 

 

 

 

 

 

 

 

Average Occupancy

 

98.1

%

 

97.8

%

 

98.3

%

 

97.3

%

Bad debt % of gross rental revenues (1)

 

1.0

%

 

2.0

%

 

1.7

%

 

1.4

%

Turnover Rate

 

6.3

%

 

7.4

%

 

18.2

%

 

20.7

%

 

 

 

 

 

 

 

 

 

Rental Rate Growth (lease-over-lease):

 

 

 

 

 

 

 

 

Renewals

 

7.8

%

 

3.2

%

 

6.1

%

 

3.6

%

New leases

 

18.4

%

 

5.6

%

 

13.6

%

 

3.5

%

Blended

 

10.6

%

 

4.0

%

 

8.1

%

 

3.6

%

 

 

 

 

 

 

 

 

 

(1)

Invitation Homes reserves residents' accounts receivables balances that are aged greater than 30 days as bad debt, under the rationale that a resident's security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident's security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. All rental revenues and other property income, in both Total Portfolio and Same Store Portfolio presentations, are reflected net of bad debt.

Revenue Collections Update

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Pre-COVID Average (2)

Revenues collected % of revenues due: (1)

 

 

 

 

 

 

 

 

 

 

Revenues collected in same month billed

 

92

%

 

92

%

 

91

%

 

91

%

 

96

%

Late collections of prior month billings

 

5

%

 

6

%

 

6

%

 

5

%

 

3

%

Total collections

 

97

%

 

98

%

 

97

%

 

96

%

 

99

%

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes both rental revenues and other property income. Rent is considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. Security deposits retained to offset rents due are not included as revenue collected. See "Same Store Operating Results Snapshot," footnote (1), for detail on the Company's bad debt policy.

(2)

Represents the period from October 2019 to March 2020.

Same Store NOI

For the Same Store Portfolio of 72,423 homes, third quarter 2021 Same Store NOI increased 11.9% year over year on Same Store Core Revenues growth of 7.9% and Same Store Core Operating Expenses growth of 0.6%.

YTD 2021 Same Store NOI increased 8.3% year over year on Same Store Core Revenues growth of 5.4% and a 0.3% decrease in Same Store Core Operating Expenses.

Same Store Core Revenues

Third quarter 2021 Same Store Core Revenues growth of 7.9% year over year was driven by a 5.8% increase in Average Monthly Rent, a 30 basis point increase in Average Occupancy to 98.1%, a 100 basis points year over year improvement in bad debt as a percentage of gross rental revenue, and a 39.5% increase in Other income, net of resident recoveries.

YTD 2021 Same Store Core Revenues growth of 5.4% year over year was driven by a 4.4% increase in Average Monthly Rent, a 100 basis point increase in Average Occupancy to 98.3%, and a 14.1% increase in Other income, net of resident recoveries. Bad debt increased from 1.4% of gross rental revenues in YTD 2020 to 1.7% of gross rental revenues in YTD 2021, which was a 29 basis point drag on Same Store Core Revenues growth, all else equal.

Same Store Core Operating Expenses

Third quarter 2021 Same Store Core Operating Expenses increased 0.6% year over year, driven by a 3.5% increase in Same Store fixed expenses, partially offset by a 4.0% decline in Same Store controllable expenses, net of resident recoveries.

YTD 2021 Same Store Core Operating Expenses decreased 0.3% year over year, driven by a 5.3% decline in Same Store controllable expenses, net of resident recoveries, partially offset by a 2.8% increase in Same Store fixed expenses.

Investment Management Activity

Invitation Homes increased its acquisition pace during 3Q 2021. Third quarter 2021 acquisitions totaled 1,684 homes for $722 million through multiple acquisition channels. This included 1,082 wholly owned homes for $477 million and 602 homes for $245 million in the Company's unconsolidated joint venture with the Rockpoint Group (the "Rockpoint JV"). Invitation Homes owns 20% of the Rockpoint JV, which owned a total of 1,422 homes as of September 30, 2021.

Dispositions in the third quarter of 2021 included 145 wholly owned homes for gross proceeds of $51 million and 16 homes for gross proceeds of $6 million in the Company's unconsolidated joint venture with the Federal National Mortgage Association (the "FNMA JV").

Year to date through September 30, 2021, the Company acquired 3,259 homes for $1,291 million, including 1,977 wholly owned homes for $810 million and 1,282 homes for $481 million in the Rockpoint JV. The Company also sold 644 homes for $212 million, including 605 wholly owned homes for $197 million and 39 homes for $15 million in the FNMA JV.

Balance Sheet and Capital Markets Activity

As of September 30, 2021, the Company had $1,570 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility. The Company's total indebtedness as of September 30, 2021, was $7,870 million, consisting of $4,273 million of secured debt and $3,597 million of unsecured debt.

The Company issued and sold 17,451,969 shares of common stock for net proceeds of $693 million. Of the shares issued during the quarter, 12,500,000 were sold through a public offering that was previously announced in September, and 4,951,969 shares were sold through the Company's at the market equity program, under which $300 million of gross capacity remained as of September 30, 2021. Subsequent to quarter end, in October 2021, the Company sold 1,875,000 shares pursuant to the underwriters’ full exercise of the option to purchase additional shares, generating net proceeds of $75 million. The proceeds from these issuances were and will be used primarily for general corporate purposes, including acquisitions.

As previously announced in August 2021, the Company closed its first public bond offering of $650 million aggregate principal with a fixed coupon of 2.00% (the "Senior Notes"). The Senior Notes were priced at 98.396% of the principal amount and will mature on August 15, 2031. Net proceeds were used to voluntarily prepay secured indebtedness.

As previously announced in July 2021, the Company gave notice of its intent to settle conversions of its 3.5% Convertible Notes due January 15, 2022 (the "2022 Convertible Notes"), with common stock. As of September 30, 2021, the Company settled $199 million of principal balance outstanding of the 2022 Convertible Notes with the issuance of 8,723,421 shares of its common stock. On a pro forma basis, whereby net debt is reduced for the impact of the conversion of remaining 2022 Convertible Notes, Net Debt / Trailing Twelve Months Adjusted EBITDAre at September 30, 2021, would have been 6.1x, down from 6.2x on an as-reported basis, and from 7.3x at the end of 2020 on an as-reported basis, with no debt reaching final maturity until December 2024.

Dividend

As previously announced on October 22, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.17 per share of common stock. The dividend will be paid on or before November 24, 2021, to stockholders of record as of the close of business on November 9, 2021.

FY 2021 Guidance Update

FY 2021 Guidance

 

 

Current

 

Previous

 

 

FY 2021

 

FY 2021

 

 

Guidance

 

Guidance

Core FFO per share — diluted

 

$1.47 - $1.51

 

$1.40 - $1.48

AFFO per share — diluted

 

$1.26 - $1.30

 

$1.20 - $1.28

 

 

 

 

 

Same Store Core Revenues growth

 

6.25% - 6.5%

 

5.0% - 6.0%

Same Store Core Operating Expenses growth

 

1.0% - 2.0%

 

2.5% - 3.5%

Same Store NOI growth

 

8.5% - 9.5%

 

6.5% - 7.5%

 

 

 

 

 

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 expense, or a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses 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 the Company's 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 October 28, 2021, to discuss results for the third quarter of 2021. The domestic dial-in number is 1-844-200-6205, and the international dial-in number is 1-929-526-1599. The passcode is 889970. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through November 25, 2021, and can be accessed by calling 1-866-813-9403 (domestic) or 1-929-458-6194 (international) and using the replay passcode 768378, 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 herein and, as applicable, reconciled to the most comparable GAAP measures.

About Invitation Homes

Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, "Together with you, we make a house a home," reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to the Company's expectations regarding the performance of the Company's business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) fees, and insurance costs, the Company's dependence on third parties for key services, risks related to the evaluation of properties, poor resident selection and defaults and non-renewals by the Company's residents, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of the ongoing COVID-19 pandemic on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Moreover, many of these factors have been heightened as a result of the ongoing and numerous adverse impacts of COVID-19. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's other filings with the SEC. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

Consolidated Balance Sheets

($ in thousands, except shares and per share data)

 

 

 

 

 

 

 

 

 

 

 

September 30,
2021

 

December 31,
2020

 

 

(unaudited)

 

 

Assets:

 

 

 

 

Investments in single-family residential properties, net

 

$

16,653,447

 

 

$

16,288,693

 

Cash and cash equivalents

 

569,663

 

 

213,422

 

Restricted cash

 

251,487

 

 

198,346

 

Goodwill

 

258,207

 

 

258,207

 

Investments in unconsolidated joint ventures

 

93,096

 

 

69,267

 

Other assets, net

 

424,666

 

 

478,287

 

Total assets

 

$

18,250,566

 

 

$

17,506,222

 

 

 

 

 

 

Liabilities:

 

 

 

 

Mortgage loans, net

 

$

3,857,863

 

 

$

4,820,098

 

Secured term loan, net

 

401,258

 

 

401,095

 

Unsecured notes, net

 

931,889

 

 

 

Term loan facility, net

 

2,476,309

 

 

2,470,907

 

Revolving facility

 

 

 

 

Convertible senior notes, net

 

145,818

 

 

339,404

 

Accounts payable and accrued expenses

 

297,073

 

 

149,299

 

Resident security deposits

 

163,663

 

 

157,936

 

Other liabilities

 

453,448

 

 

611,410

 

Total liabilities

 

8,727,321

 

 

8,950,149

 

 

 

 

 

 

Equity:

 

 

 

 

Stockholders' equity

 

 

 

 

Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of September 30, 2021 and December 31, 2020

 

 

 

 

Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 594,893,674 and 567,117,666 outstanding as of September 30, 2021 and December 31, 2020, respectively

 

5,949

 

 

5,671

 

Additional paid-in capital

 

10,622,691

 

 

9,707,258

 

Accumulated deficit

 

(767,232

)

 

(661,162

)

Accumulated other comprehensive loss

 

(378,428

)

 

(546,942

)

Total stockholders' equity

 

9,482,980

 

 

8,504,825

 

Non-controlling interests

 

40,265

 

 

51,248

 

Total equity

 

9,523,245

 

 

8,556,073

 

Total liabilities and equity

 

$

18,250,566

 

 

$

17,506,222

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

($ in thousands, except shares and per share amounts) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q3 2020

 

YTD 2021

 

YTD 2020

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Rental revenues

 

$

464,086

 

 

$

424,191

 

 

$

1,351,332

 

 

$

1,257,858

 

Other property income

 

44,092

 

 

34,993

 

 

121,918

 

 

100,870

 

Joint venture management fees

 

1,354

 

 

 

 

3,140

 

 

 

Total revenues

 

509,532

 

 

459,184

 

 

1,476,390

 

 

1,358,728

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Property operating and maintenance

 

184,484

 

 

177,997

 

 

528,279

 

 

511,915

 

Property management expense

 

17,886

 

 

14,824

 

 

51,424

 

 

43,725

 

General and administrative

 

19,369

 

 

17,972

 

 

56,147

 

 

46,626

 

Interest expense

 

79,370

 

 

87,713

 

 

243,540

 

 

258,541

 

Depreciation and amortization

 

150,694

 

 

138,147

 

 

440,475

 

 

410,440

 

Impairment and other

 

4,294

 

 

1,723

 

 

5,630

 

 

4,670

 

Total expenses

 

456,097

 

 

438,376

 

 

1,325,495

 

 

1,275,917

 

 

 

 

 

 

 

 

 

 

Gains (losses) on investments in equity securities, net

 

4,319

 

 

 

 

(5,823

)

 

34

 

Other, net

 

(1,508

)

 

(3,049

)

 

(3,181

)

 

2,001

 

Gain on sale of property, net of tax

 

13,047

 

 

15,106

 

 

45,450

 

 

41,473

 

Income from investments in unconsolidated joint ventures

 

202

 

 

 

 

564

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

69,495

 

 

32,865

 

 

187,905

 

 

126,319

 

Net income attributable to non-controlling interests

 

(318

)

 

(211

)

 

(1,023

)

 

(806

)

 

 

 

 

 

 

 

 

 

Net income attributable to common stockholders

 

69,177

 

 

32,654

 

 

186,882

 

 

125,513

 

Net income available to participating securities

 

(69

)

 

(114

)

 

(260

)

 

(335

)

 

 

 

 

 

 

 

 

 

Net income available to common stockholders — basic and diluted

 

$

69,108

 

 

$

32,540

 

 

$

186,622

 

 

$

125,178

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — basic

 

577,011,178

 

 

560,598,995

 

 

570,808,028

 

 

550,722,684

 

Weighted average common shares outstanding — diluted

 

578,571,392

 

 

561,871,373

 

 

572,262,198

 

 

551,947,278

 

 

 

 

 

 

 

 

 

 

Net income per common share — basic

 

$

0.12

 

 

$

0.06

 

 

$

0.33

 

 

$

0.23

 

Net income per common share — diluted

 

$

0.12

 

 

$

0.06

 

 

$

0.33

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.17

 

 

$

0.15

 

 

$

0.51

 

 

$

0.45

 

 

 

 

 

 

 

 

 

 

Glossary and Reconciliations

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 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.

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. The Company defines 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; depreciation and amortization; and adjustments for unconsolidated joint ventures. National Association of Real Estate Investment Trusts ("Nareit") recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. The Company defines 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; severance; casualty (gains) losses, net; (gains) losses on investments in equity securities, net; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of the Company's 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.

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 the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's 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 the Company's basis for computing these non-GAAP measures is comparable with that of other companies. See below for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre.

Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)

FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated 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.

The Company believes that FFO is a meaningful supplemental measure of the operating performance of its 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 the Company's liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. The Company's 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 the Company's basis for computing this non-GAAP measures is comparable with that of other companies. See "Reconciliation of FFO, Core FFO, and Adjusted FFO" for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO.

Net Operating Income (NOI)

NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. The Company defines NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs, and marketing expense). NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; impairment and other; gain on sale of property, net of tax; (gains) losses on investments in equity securities, net; other income and expenses; joint venture management fees; and income from investments in unconsolidated joint ventures.

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. The Company's 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 the Company's basis for computing this non-GAAP measure is comparable with that of other companies.

The Company believes that Same Store NOI is also a meaningful supplemental measure of the Company's operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of the Company's performance across reporting periods by reflecting NOI for homes in its Same Store Portfolio.

See below for a reconciliation of GAAP net income to NOI for the Company's total portfolio and NOI for its Same Store Portfolio.

Recurring Capital Expenditures or Recurring CapEx

Recurring Capital Expenditures or Recurring CapEx represents general replacements and expenditures required to preserve and maintain the value and functionality of a home and its systems as a single-family rental.

Rental Rate Growth

Rental rate growth for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease, and, in each case, reflects the impact of any amortized non-service rent concessions and amortized contractual rent increases. Leases are either renewal leases, where the Company's current resident chooses to stay for a subsequent lease term, or a new lease, where the Company's previous resident moves out and a new resident signs a lease to occupy the same home.

Revenue Collections

Revenue collections represent the total cash received in a given period for rental revenues and other property income (including receipt of late payments that were billed in prior months) divided by the total amounts billed in that period. When a payment plan is in place with a resident, amounts are considered to be billed at the time they would have been billed based on the terms of the original lease, not the terms of the payment plan. "Historical average" revenue collections as a percentage of billings refer to revenue collections as a percentage of billings for the period from October 2019 through and including March 2020.

Same Store / Same Store Portfolio

Same Store or Same Store portfolio includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio, and homes in markets that the Company has announced an intent to exit where the Company no longer operates a significant number of homes.

Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio may be considered stabilized at the time of acquisition.

Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established.

The Company believes presenting information about the portion of its 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 the Company's comparable homes across periods and about trends in its 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. Unless otherwise indicated, total homes or total portfolio refers to the wholly owned homes and excludes homes owned in joint ventures.

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.

Reconciliation of FFO, Core FFO, and AFFO

($ in thousands, except shares and per share amounts) (unaudited)

 

 

 

 

 

 

 

 

 

FFO Reconciliation

 

Q3 2021

 

Q3 2020

 

YTD 2021

 

YTD 2020

Net income available to common stockholders

 

$

69,108

 

 

$

32,540

 

 

$

186,622

 

 

$

125,178

 

Net income available to participating securities

 

69

 

 

114

 

 

260

 

 

335

 

Non-controlling interests

 

318

 

 

211

 

 

1,023

 

 

806

 

Depreciation and amortization on real estate assets

 

148,957

 

 

136,517

 

 

435,348

 

 

406,078

 

Impairment on depreciated real estate investments

 

126

 

 

289

 

 

650

 

 

4,202

 

Net gain on sale of previously depreciated investments in real estate

 

(13,047

)

 

(15,106

)

 

(45,450

)

 

(41,473

)

Depreciation and net gain on sale of investments in unconsolidated joint ventures

 

29

 

 

 

 

(61

)

 

 

FFO

 

$

205,560

 

 

$

154,565

 

 

$

578,392

 

 

$

495,126

 

 

 

 

 

 

 

 

 

 

Core FFO Reconciliation

 

Q3 2021

 

Q3 2020

 

YTD 2021

 

YTD 2020

FFO

 

$

205,560

 

 

$

154,565

 

 

$

578,392

 

 

$

495,126

 

Non-cash interest expense, including the Company's share from unconsolidated joint ventures

 

9,004

 

 

6,883

 

 

25,791

 

 

26,640

 

Share-based compensation expense

 

6,052

 

 

6,086

 

 

21,072

 

 

12,293

 

Severance expense

 

226

 

 

133

 

 

500

 

 

388

 

Casualty losses, net

 

4,168

 

 

1,434

 

 

4,980

 

 

468

 

(Gains) losses on investments in equity securities, net

 

(4,319

)

 

 

 

5,823

 

 

(34

)

Core FFO

 

$

220,691

 

 

$

169,101

 

 

$

636,558

 

 

$

534,881

 

 

 

 

 

 

 

 

 

 

AFFO Reconciliation

 

Q3 2021

 

Q3 2020

 

YTD 2021

 

YTD 2020

Core FFO

 

$

220,691

 

 

$

169,101

 

 

$

636,558

 

 

$

534,881

 

Recurring capital expenditures, including the Company's share from unconsolidated joint ventures

 

(36,248

)

 

(33,861

)

 

(89,437

)

 

(87,466

)

Adjusted FFO

 

$

184,443

 

 

$

135,240

 

 

$

547,121

 

 

$

447,415

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted (1)

 

578,571,392

 

 

561,871,373

 

 

572,262,198

 

 

551,947,278

 

 

 

 

 

 

 

 

 

 

Net income per common share — diluted (1)

 

$

0.12

 

 

$

0.06

 

 

$

0.33

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

FFO

 

 

 

 

 

 

 

 

Numerator for FFO per common share — diluted(1)

 

$

205,560

 

 

$

154,565

 

 

$

590,923

 

 

$

507,995

 

Weighted average common shares and OP Units outstanding — diluted (1)

 

581,333,229

 

 

565,655,768

 

 

588,603,771

 

 

570,851,976

 

 

 

 

 

 

 

 

 

 

FFO per share — diluted (1)

 

$

0.35

 

 

$

0.27

 

 

$

1.00

 

 

$

0.89

 

 

 

 

 

 

 

 

 

 

Core FFO and Adjusted FFO

 

 

 

 

 

 

 

 

Weighted average common shares and OP Units outstanding — diluted (2)

 

581,333,229

 

 

565,655,768

 

 

575,639,449

 

 

555,751,533

 

 

 

 

 

 

 

 

 

 

Core FFO per share — diluted (2)

 

$

0.38

 

 

$

0.30

 

 

$

1.11

 

 

$

0.96

 

AFFO per share — diluted (2)

 

$

0.32

 

 

$

0.24

 

 

$

0.95

 

 

$

0.81

 

 

 

 

 

 

 

 

 

 

(1)

During Q3 2021 and YTD 2021, at the election of the noteholders, the Company settled $199 million of principal balance outstanding of the 2022 Convertible Notes with the issuance of 8,723,161 and 8,723,421 shares of its common stock, respectively. For the period subsequent to such conversion dates, shares issued in connection with any settled conversions of the 2022 Convertible Notes are included within weighted shares outstanding and therefore impact diluted per share information.

 

 

 

In accordance with GAAP and Nareit guidelines, net income per share — diluted and FFO per share — diluted include the effect of shares issuable in respect of the 2022 Convertible Notes if such shares are dilutive to the calculation.

 

 

 

In Q3 2021 and Q3 2020, the effect of the shares issuable in respect of the 2022 Convertible Notes is anti-dilutive to both net income per share and FFO per share. As such, these quarter to date measures are not adjusted for conversion of the 2022 Convertible Notes.

 

 

 

In YTD 2021 and YTD 2020, the effect of the shares issuable in respect of the 2022 Convertible Notes is anti-dilutive to net income per share and dilutive to FFO per share. As such, YTD net income per share is not adjusted for conversion of the 2022 Convertible Notes, and YTD FFO per share considers the dilutive effect of the 2022 Convertible Notes by removing the related interest expense from the numerator and increasing the denominator to include shares issuable on conversion of the 2022 Convertible Notes.

 

 

(2)

Core FFO and AFFO per share reflect the 2022 Convertible Notes in the form in which they were outstanding during each period. As such, Core FFO and AFFO per share do not treat the outstanding 2022 Convertible Notes as if converted for each of the periods presented.

Reconciliation of Total Revenues to Same Store Core Revenues, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Q3 2020

Total revenues (Total Portfolio)

 

$

509,532

 

 

$

491,633

 

 

$

475,225

 

 

$

464,100

 

 

$

459,184

 

Joint venture management fees

 

(1,354

)

 

(1,015

)

 

(771

)

 

 

 

 

Total portfolio resident recoveries

 

(27,972

)

 

(26,076

)

 

(24,740

)

 

(23,885

)

 

(23,675

)

Total Core Revenues (Total Portfolio)

 

480,206

 

 

464,542

 

 

449,714

 

 

440,215

 

 

435,509

 

Non-Same Store Core Revenues

 

(46,947

)

 

(43,865

)

 

(39,929

)

 

(36,334

)

 

(34,056

)

Same Store Core Revenues

 

$

433,259

 

 

$

420,677

 

 

$

409,785

 

 

$

403,881

 

 

$

401,453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Total Revenues to Same Store Core Revenues, YTD

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2021

 

YTD 2020

 

 

 

 

 

 

Total revenues (Total Portfolio)

 

$

1,476,390

 

 

$

1,358,728

 

 

 

 

 

 

 

Joint venture management fees

 

(3,140

)

 

 

 

 

 

 

 

 

Total Portfolio resident recoveries

 

(78,788

)

 

(63,873

)

 

 

 

 

 

 

Total Core Revenues (Total Portfolio)

 

1,394,462

 

 

1,294,855

 

 

 

 

 

 

 

Non-Same Store Core Revenues

 

(130,741

)

 

(95,462

)

 

 

 

 

 

 

Same Store Core Revenues

 

$

1,263,721

 

 

$

1,199,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Q3 2020

Property operating and maintenance expenses (Total Portfolio)

 

$

184,484

 

 

$

175,422

 

 

$

168,373

 

 

$

168,628

 

 

$

177,997

 

Total Portfolio resident recoveries

 

(27,972

)

 

(26,076

)

 

(24,740

)

 

(23,885

)

 

(23,675

)

Core Operating Expenses (Total Portfolio)

 

156,512

 

 

149,346

 

 

143,633

 

 

144,743

 

 

154,322

 

Non-Same Store Core Operating Expenses

 

(13,755

)

 

(13,713

)

 

(12,487

)

 

(12,557

)

 

(12,380

)

Same Store Core Operating Expenses

 

$

142,757

 

 

$

135,633

 

 

$

131,146

 

 

$

132,186

 

 

$

141,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Property Operating and Maintenance Expenses to Same Store Core Operating Expenses, YTD

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2021

 

YTD 2020

 

 

 

 

 

 

Property operating and maintenance expenses (Total Portfolio)

 

$

528,279

 

 

$

511,915

 

 

 

 

 

 

 

Total Portfolio resident recoveries

 

(78,788

)

 

(63,873

)

 

 

 

 

 

 

Core Operating Expenses (Total Portfolio)

 

449,491

 

 

448,042

 

 

 

 

 

 

 

Non-Same Store Core Operating Expenses

 

(39,955

)

 

(37,468

)

 

 

 

 

 

 

Same Store Core Operating Expenses

 

$

409,536

 

 

$

410,574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Same Store NOI, Quarterly

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q2 2021

 

Q1 2021

 

Q4 2020

 

Q3 2020

Net income available to common stockholders

 

$

69,108

 

 

$

60,242

 

 

$

57,272

 

 

$

70,586

 

 

$

32,540

 

Net income available to participating securities

 

69

 

 

96

 

 

95

 

 

113

 

 

114

 

Non-controlling interests

 

318

 

 

350

 

 

355

 

 

431

 

 

211

 

Interest expense

 

79,370

 

 

80,764

 

 

83,406

 

 

95,382

 

 

87,713

 

Depreciation and amortization

 

150,694

 

 

145,280

 

 

144,501

 

 

142,090

 

 

138,147

 

Property management expense

 

17,886

 

 

17,696

 

 

15,842

 

 

14,888

 

 

14,824

 

General and administrative

 

19,369

 

 

19,828

 

 

16,950

 

 

16,679

 

 

17,972

 

Impairment and other

 

4,294

 

 

980

 

 

356

 

 

(3,974

)

 

1,723

 

Gain on sale of property, net of tax

 

(13,047

)

 

(17,919

)

 

(14,484

)

 

(13,121

)

 

(15,106

)

(Gains) losses on investments in equity securities, net

 

(4,319

)

 

7,002

 

 

3,140

 

 

(29,689

)

 

 

Other, net

 

1,508

 

 

1,903

 

 

(230

)

 

2,087

 

 

3,049

 

Joint venture management fees

 

(1,354

)

 

(1,015

)

 

(771

)

 

 

 

 

Income from investments in unconsolidated joint ventures

 

(202

)

 

(11

)

 

(351

)

 

 

 

 

NOI (Total Portfolio)

 

323,694

 

 

315,196

 

 

306,081

 

 

295,472

 

 

281,187

 

Non-Same Store NOI

 

(33,192

)

 

(30,152

)

 

(27,442

)

 

(23,777

)

 

(21,676

)

Same Store NOI

 

$

290,502

 

 

$

285,044

 

 

$

278,639

 

 

$

271,695

 

 

$

259,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to Same Store NOI, YTD

(in thousands) (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2021

 

YTD 2020

 

 

 

 

 

 

Net income available to common stockholders

 

$

186,622

 

 

$

125,178

 

 

 

 

 

 

 

Net income available to participating securities

 

260

 

 

335

 

 

 

 

 

 

 

Non-controlling interests

 

1,023

 

 

806

 

 

 

 

 

 

 

Interest expense

 

243,540

 

 

258,541

 

 

 

 

 

 

 

Depreciation and amortization

 

440,475

 

 

410,440

 

 

 

 

 

 

 

Property management expense

 

51,424

 

 

43,725

 

 

 

 

 

 

 

General and administrative

 

56,147

 

 

46,626

 

 

 

 

 

 

 

Impairment and other

 

5,630

 

 

4,670

 

 

 

 

 

 

 

Gain on sale of property, net of tax

 

(45,450

)

 

(41,473

)

 

 

 

 

 

 

(Gains) losses on investments in equity securities, net

 

5,823

 

 

(34

)

 

 

 

 

 

 

Other, net

 

3,181

 

 

(2,001

)

 

 

 

 

 

 

Joint venture management fees

 

(3,140

)

 

 

 

 

 

 

 

 

Income from investments in unconsolidated joint ventures

 

(564

)

 

 

 

 

 

 

 

 

NOI (Total Portfolio)

 

944,971

 

 

846,813

 

 

 

 

 

 

 

Non-Same Store NOI

 

(90,786

)

 

(57,994

)

 

 

 

 

 

 

Same Store NOI

 

$

854,185

 

 

$

788,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Q3 2021

 

Q3 2020

 

YTD 2021

 

YTD 2020

Net income available to common stockholders

 

$

69,108

 

 

$

32,540

 

 

$

186,622

 

 

$

125,178

 

Net income available to participating securities

 

69

 

 

114

 

 

260

 

 

335

 

Non-controlling interests

 

318

 

 

211

 

 

1,023

 

 

806

 

Interest expense

 

79,370

 

 

87,713

 

 

243,540

 

 

258,541

 

Interest expense in unconsolidated joint ventures

 

370

 

 

 

 

669

 

 

 

Depreciation and amortization

 

150,694

 

 

138,147

 

 

440,475

 

 

410,440

 

Depreciation and amortization of real estate assets in unconsolidated joint ventures

 

389

 

 

 

 

739

 

 

 

EBITDA

 

300,318

 

 

258,725

 

 

873,328

 

 

795,300

 

Gain on sale of property, net of tax

 

(13,047

)

 

(15,106

)

 

(45,450

)

 

(41,473

)

Impairment on depreciated real estate investments

 

126

 

 

289

 

 

650

 

 

4,202

 

Net gain on sale of investments in unconsolidated joint ventures

 

(360

)

 

 

 

(800

)

 

 

EBITDAre

 

287,037

 

 

243,908

 

 

827,728

 

 

758,029

 

Share-based compensation expense

 

6,052

 

 

6,086

 

 

21,072

 

 

12,293

 

Severance

 

226

 

 

133

 

 

500

 

 

388

 

Casualty losses, net

 

4,168

 

 

1,434

 

 

4,980

 

 

468

 

(Gains) losses on investments in equity securities, net

 

(4,319

)

 

 

 

5,823

 

 

(34

)

Other, net

 

1,508

 

 

3,049

 

 

3,181

 

 

(2,001

)

Adjusted EBITDAre

 

$

294,672

 

 

$

254,610

 

 

$

863,284

 

 

$

769,143

 

 

 

 

 

 

 

 

 

 

 

 

Trailing Twelve Months (TTM)
Ended

 

 

 

 

 

 

September 30,
2021

 

December 31,
2020

 

 

 

 

Net income available to common stockholders

 

$

257,208

 

 

$

195,764

 

 

 

 

 

Net income available to participating securities

 

373

 

 

448

 

 

 

 

 

Non-controlling interests

 

1,454

 

 

1,237

 

 

 

 

 

Interest expense

 

338,922

 

 

353,923

 

 

 

 

 

Interest expense in unconsolidated joint ventures

 

669

 

 

 

 

 

 

 

Depreciation and amortization

 

582,565

 

 

552,530

 

 

 

 

 

Depreciation and amortization of real estate assets in unconsolidated joint ventures

 

739

 

 

 

 

 

 

 

EBITDA

 

1,181,930

 

 

1,103,902

 

 

 

 

 

Gain on sale of property, net of tax

 

(58,571

)

 

(54,594

)

 

 

 

 

Impairment on depreciated real estate investments

 

1,026

 

 

4,578

 

 

 

 

 

Net gain on sale of investments in unconsolidated joint ventures

 

(800

)

 

 

 

 

 

 

EBITDAre

 

1,123,585

 

 

1,053,886

 

 

 

 

 

Share-based compensation expense

 

25,869

 

 

17,090

 

 

 

 

 

Severance

 

713

 

 

601

 

 

 

 

 

Casualty (gains) losses, net

 

630

 

 

(3,882

)

 

 

 

 

(Gains) losses on investments in equity securities, net

 

(23,866

)

 

(29,723

)

 

 

 

 

Other, net

 

5,268

 

 

86

 

 

 

 

 

Adjusted EBITDAre

 

$

1,132,199

 

 

$

1,038,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Debt / Trailing Twelve Months (TTM) Adjusted EBITDAre

(in thousands, except for ratio) (unaudited)

 

 

 

 

 

 

 

As of

 

As of

 

 

September 30, 2021

 

December 31, 2020

Mortgage loans, net

 

$

3,857,863

 

 

$

4,820,098

 

Secured term loan, net

 

401,258

 

 

401,095

 

Unsecured notes, net

 

931,889

 

 

 

Term loan facility, net

 

2,476,309

 

 

2,470,907

 

Revolving facility

 

 

 

 

Convertible senior notes, net

 

145,818

 

 

339,404

 

Total Debt per Balance Sheet

 

7,813,137

 

 

8,031,504

 

Retained and repurchased certificates

 

(199,280

)

 

(247,526

)

Cash, ex-security deposits and letters of credit (1)

 

(653,475

)

 

(250,204

)

Deferred financing costs, net

 

43,819

 

 

43,396

 

Unamortized discounts on note payable

 

13,002

 

 

7,885

 

Net Debt (A)

 

$

7,017,203

 

 

$

7,585,055

 

2022 convertible senior notes, net

 

(145,818

)

 

 

Unamortized discounts related to 2022 convertible senior notes

 

(673

)

 

 

Pro Forma Net Debt (B) (2)

 

$

6,870,712

 

 

 

 

 

 

 

 

 

 

For the Trailing Twelve

 

For the Trailing Twelve

 

 

Months (TTM) Ended

 

Months (TTM) Ended

 

 

September 30, 2021

 

December 31, 2020

Adjusted EBITDAre (C)

 

$

1,132,199

 

 

$

1,038,058

 

 

 

 

 

 

Net Debt / TTM Adjusted EBITDAre (A / C)

 

6.2

x

 

7.3

x

 

 

 

 

 

Pro Forma Net Debt / TTM Adjusted EBITDAre (B / C) (2)

 

6.1

x

 

 

 

 

 

 

 

(1)

Represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit

(2)

In July 2021, the Company gave notice of intent to settle conversions of its 2022 Convertible Notes with common stock. As of September 30, 2021, $199 million of principal was converted into 8,723,421 shares of common stock at the election of the note holders. Pro Forma Net Debt and Pro Forma Net Debt / Trailing Twelve Months Adjusted EBITDAre assume the net debt is reduced for the impact of the conversion of the remaining $146 million (par value) 2022 Convertible Notes