Invitation Homes Inc. (INVH) 10-Q Quarterly Report May 2020



Earnings Press Release	2
Consolidated Financial Statements	7
Schedule 1: Reconciliation of FFO, Core FFO, and AFFO	9
Schedule 2: Capital Structure Information	11
Schedule 3: Summary of Operating Information by Home Portfolio	15
Schedule 4: Home Characteristics by Market	18
Schedule 5: Same Store Operating Information by Market	19
Schedule 6: Cost to Maintain and Capital Expenditure Detail	24
Schedule 7: Adjusted Property Management and G&A Reconciliation	25
Schedule 8: Acquisitions and Dispositions	26
Glossary and Reconciliations	28

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 1

Earnings Press Release

Invitation Homes Reports First Quarter 2020 Results

Dallas, TX, May 6, 2020 —

Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), the nation's premier single-family home leasing company, today announced its first quarter 2020 financial and operating results.

First Quarter 2020 Highlights


•	Year over year, total revenues increased 3.3% to $450 million, total property operating and maintenance expenses increased 4.1% to $167 million, net income attributable to common stockholders increased 140.7% to $50 million, and net income per diluted common share increased 130.9% to $0.09.


•	Year over year, Core FFO per share increased 4.4% to $0.34, and AFFO per share increased 5.1% to $0.29.


•	Same Store NOI grew 4.0% year over year on 4.5% Same Store Core revenue growth and 5.3% Same Store Core operating expense growth.


•	Same Store average occupancy was 96.7%, up 20 bps year over year.


•	Same Store renewal rent growth of 4.3% and Same Store new lease rent growth of 1.7% drove Same Store blended rent growth of 3.4%.

COVID-19 Update

With the safety and wellbeing of its residents and associates being Invitation Homes' highest priority, the Company began taking proactive measures in March 2020 in response to the COVID-19 pandemic. These health and safety measures include:


•	Observation of social distancing and sanitary best practices throughout all operations.


•	Reliance on self-tours to show homes.


•	Deferral of non-critical service trips.


•	Implementation of financial and health care benefits to support associates who may have been exposed to COVID-19.

In addition, to act on its core values of "Genuine Care" and "Standout Citizenship," the Company began working in March to find appropriate solutions for residents experiencing financial hardship, including:


•	A voluntary moratorium on evictions.


•	The creation of payment plans, without late fees, for residents requiring flexibility to meet rental obligations over time.

The Company has also taken measures to maximize operating and financial results, further enhance its favorable liquidity position, and mitigate risk related to COVID-19. These measures, and their resulting impact to operations since the end of the first quarter of 2020, include the following:


•	Resident satisfaction survey scores have continued climbing, as the Company acted early to implement and communicate COVID-19-specific safety protocols, and continued to serve residents' needs when safe to do so.


•	Same Store average occupancy increased to a record-high 97.2% in April, up 60 basis points year over year, and up 30 basis points from March, as the Company adjusted its revenue management strategy to further prioritize occupancy. Including the impact of concessions, blended lease-over-lease rent growth was 3.2% in April.


•	The Company's rent collection rate in April was over 95% of historical average, and less than 2% of residents elected to defer a portion of their rent in April. For May, the rent collection rate improved to over 100% of the pre-COVID-19 historical average through the first five days of the month, and almost 109% of April's pace through day five.

•

As of April 30, 2020, the Company had liquidity of $1,075 million through a combination of unrestricted cash and undrawn capacity on its credit facility, no debt maturing prior to 2022, and only $19 million of commitments in its acquisition pipeline. Disposition channels have remained open, with $31 million of sales closed in April, and another $59 million under contract. Unencumbered homes increased to 51% of total homes, as of April 30, 2020.


•	In March, to further mitigate risk, the Company increased its unrestricted cash working capital balance by partially drawing on its revolving line of credit. In addition, the Company has temporarily paused placing new acquisitions under contract, but continues to monitor the housing market for the opportune time to resume acquisition activity.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 2

President & Chief Executive Officer Dallas Tanner comments: "We are very pleased with both our first quarter results and the efforts of our team in the new operating environment we have entered as a result of the COVID-19 pandemic. Our mission statement, "Together with you, we make a house a home," resonates now more than ever. We are proud to provide safe homes and genuine care that bring comfort to the lives of thousands of families in these trying times.

"The health and safety of our residents, associates, partners, and communities remains our number one priority. Since early March, our management team and COVID-19 task force have engaged in continuous discussion and implementation of efforts to support the wellbeing of our many stakeholders. Our teams have done an exceptional job adapting to challenges around them to continue caring for residents while going above and beyond to protect public health.

"The last two months have confirmed for me the strength and resiliency of our people and the platform we have built. I am confident that Invitation Homes will emerge from the pandemic on course to grow toward a bright future. In the meantime, I am very happy with how we have navigated and performed through this period of near-term uncertainty so far, and believe we are well-prepared for a variety of potential scenarios that may play out with respect to public health and the broader economy. We entered the pandemic from a position of strength. April occupancy was an all-time high, and rent collections and leasing velocity have remained healthy thus far. We operate a high-margin business, and we have over $1 billion of available liquidity, with no debt maturing until 2022 and minimal near-term investing commitments. As disciplined stewards of capital, we are committed to mitigating risk in today's environment, but will remain nimble and ready to grow when the time is right."

Financial Results



Net Income, FFO, Core FFO, and AFFO Per Share — Diluted

	Q1 2020		Q1 2019
Net income ⁽¹⁾	$	0.09	$	0.04
FFO ⁽¹⁾	0.31		0.26
Core FFO ⁽²⁾	0.34		0.33
AFFO ⁽²⁾	0.29		0.28

(1)

In accordance with GAAP and Nareit guidelines, net income per share and FFO per share are calculated as if the 3.0% Convertible Notes due July 1, 2019 (the "2019 Convertible Notes") were converted to common shares at the beginning of 2019, and as if the 3.5% Convertible Notes due January 15, 2022 (the "2022 Convertible Notes") were converted to common shares at the beginning of each relevant period in 2019 and 2020, unless such treatment is anti-dilutive to net income per share or FFO per share. See "Supplemental Schedule 1," footnote (1), for more detail on the treatment of convertible notes in each specific period presented in the table.


(2)	Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period. See "Supplemental Schedule 1," footnote (2), for more detail on the treatment of convertible notes in each specific period presented in the table.

Net Income

Net income per share in the first quarter of 2020 was $0.09, compared to net income per share of $0.04 in the first quarter of 2019. Total revenues and total property operating and maintenance expenses in the first quarter of 2020 were $450 million and $167 million, respectively, compared to $436 million and $160 million, respectively, in the first quarter of 2019.

Core FFO

Year over year, Core FFO per share in the first quarter of 2020 increased 4.4% to $0.34, primarily due to growth in Same Store NOI. Lower adjusted property management expenses and lower adjusted general and administrative expenses also contributed to the year over year increase in Core FFO per share.

AFFO

Year over year, AFFO per share in the first quarter of 2020 increased 5.1% to $0.29, primarily due to the increase in Core FFO per share described above.

Q2 2018 Earnings Release and Supplemental Information - page 3

Operating Results



Same Store Operating Results Snapshot

Number of homes in Same Store portfolio:	72,707

	Q1 2020		Q1 2019
Core revenue growth (year-over-year)	4.5	%
Core operating expense growth (year-over-year)	5.3	%
NOI growth (year-over-year)	4.0	%

Average occupancy	96.7	%	96.5	%
Turnover rate	6.3	%	6.3	%

Rental rate growth (lease-over-lease):
Renewals	4.3	%	5.2	%
New leases	1.7	%	3.7	%
Blended	3.4	%	4.7	%

Same Store NOI

For the Same Store portfolio of 72,707 homes, first quarter 2020 Same Store NOI increased 4.0% year over year on Same Store Core revenue growth of 4.5% and Same Store Core operating expense growth of 5.3%.

Same Store Core Revenues

First quarter 2020 Same Store Core revenue growth of 4.5% year over year was driven by a 3.9% increase in average monthly rent, a 20 basis point increase in average occupancy to 96.7%, and a 13.5% increase in other property income, net of resident recoveries.

Same Store Core Operating Expenses

First quarter 2020 Same Store Core operating expenses increased 5.3% year over year, driven primarily by higher property taxes, higher repairs and maintenance expenses, and higher turnover expenses.

Investment Management Activity

In the first quarter of 2020, Invitation Homes acquired 504 homes for $154 million, including estimated renovation costs, and sold 484 homes for gross proceeds of $132 million, resulting in a total portfolio home count of 79,525 homes as of March 31, 2020.

Subsequent to quarter end, the Company closed $28 million of acquisitions in April, and has $19 million of acquisitions under contract expected to close between May and October. The Company also closed $31 million of dispositions in April, and has $59 million of dispositions under contract expected to close between May and July.

Balance Sheet and Capital Markets Activity

In the first quarter of 2020, the Company issued 1,872,066 shares of common stock in trades executed through the first week of March under its at-the-market equity agreement ("ATM Equity Program"), at an average price of $30.36 per share, for gross proceeds of $57 million. Proceeds were used primarily to acquire homes. $686 million of capacity remained under the ATM Equity Program as of March 31, 2020. The Company has not issued any shares of common stock subsequent to March 31, 2020.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 4

In addition, the Company prepaid $107 million of secured debt in the first quarter of 2020 with cash generated from operations and dispositions. The debt prepaid in the first quarter carried a weighted average interest rate of LIBOR + 190 bps.

In March 2020, the Company increased its borrowings under its revolving credit facility to $270 million, out of an abundance of caution amid the COVID-19 pandemic. $730 million of additional capacity remains available through the credit facility, and the Company has considerable cushion with respect to the facility's covenants. Total unrestricted cash increased by $205 million from year-end, while total debt increased by only $163 million in spite of the increased revolver balance, as debt drawn from the credit facility was partially offset by the aforementioned paydown of higher cost secured debt earlier in the quarter. Through a combination of unrestricted cash and undrawn capacity on its credit facility, the Company had $1,027 million in available liquidity as of March 31, 2020.

The Company has no debt reaching final maturity before 2022, and weighted average years to maturity was 4.7 years as of March 31, 2020. Total indebtedness as of March 31, 2020 was $8,680 million, consisting of $6,565 million of secured debt and $2,115 million of unsecured debt. 51% of the Company's homes were unencumbered at March 31, 2020, and net debt / TTM Adjusted EBITDAre at March 31, 2020 was 8.0x, down from 8.1x at December 31, 2019.

Dividend

As previously announced on May 1, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock. The dividend will be paid on or before May 29, 2020 to stockholders of record as of the close of business on May 13, 2020.

Full Year 2020 Guidance Update

Due to uncertainty regarding the future economic impact of the COVID-19 pandemic, the Company no longer believes it is appropriate to provide FY 2020 guidance, and is withdrawing its previously issued guidance. The Company anticipates resuming its practice of providing full year guidance when there is sufficient clarity on economic conditions.

Earnings Conference Call Information

Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on May 7, 2020 to discuss results for the first quarter 2020. The domestic dial-in number is 1-888-317-6003, and the international dial-in number is 1-412-317-6061. The passcode is 9085269. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through June 7, 2020 and can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using the replay passcode 10142486, or by using the link at www.invh.com.

Supplemental Information

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

Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures

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

About Invitation Homes

Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 5

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.

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 (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, including without limitation the information under the heading “Full Year 2020 Guidance Update.” In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and the Company's business model, macroeconomic factors beyond the Company's control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) and insurance costs, the Company's dependence on third parties for key services, risks related to the evaluation of properties, poor resident selection and defaults and non-renewals by the Company's residents, performance of the Company's information technology systems, risks related to the Company's indebtedness, and risks related to the potential negative impact of the outbreak of the novel coronavirus strain, known as COVID-19, on the Company’s financial condition, results of operations, cash flows, business, associates, and residents. The extent to which COVID-19 impacts the Company will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity, and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic, containment measures, monetary and/or fiscal policies implemented to provide support or relief to businesses and/or residents, and other government, regulatory, and/or legislative changes precipitated by the COVID-19 pandemic, among others. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Moreover, many of these factors have been heightened as a result of the ongoing and numerous adverse impacts of COVID-19. The Company believes these factors include, but are not limited to, those described under Part I. Item 1A. “Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC’s website at http://www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's other periodic filings. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 6



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

	March 31,			December 31,
	2020			2019
	(unaudited)
Assets:
Investments in single-family residential properties, net	$	16,216,490		$	16,243,192
Cash and cash equivalents	297,060			92,258
Restricted cash	218,735			193,987
Goodwill	258,207			258,207
Other assets, net	602,853			605,266
Total assets	$	17,593,345		$	17,392,910

Liabilities:
Mortgage loans, net	$	6,137,744		$	6,238,461
Secured term loan, net	401,033			400,978
Term loan facility, net	1,494,469			1,493,747
Revolving facility	270,000			—
Convertible senior notes, net	335,559			334,299
Accounts payable and accrued expenses	180,222			186,110
Resident security deposits	150,160			147,787
Other liabilities	666,031			325,450
Total liabilities	9,635,218			9,126,832

Equity:
Stockholders' equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of March 31, 2020 and December 31, 2019	—			—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 543,767,445 and 541,642,725 outstanding as of March 31, 2020 and December 31, 2019, respectively	5,438			5,416
Additional paid-in capital	9,066,512			9,010,194
Accumulated deficit	(556,305		)	(524,588		)
Accumulated other comprehensive loss	(607,402		)	(276,600		)
Total stockholders' equity	7,908,243			8,214,422
Non-controlling interests	49,884			51,656
Total equity	7,958,127			8,266,078
Total liabilities and equity	$	17,593,345		$	17,392,910

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 7



Consolidated Statements of Operations
($ in thousands, except shares and per share amounts) (unaudited)

	Q1 2020			Q1 2019

Revenues:
Rental revenues	$	414,466		$	405,515
Other property income	35,323			29,985
Rental revenues and other property income	$	449,789		$	435,500

Expenses:
Property operating and maintenance	166,916			160,346
Property management expense	14,372			15,160
General and administrative	14,228			26,538
Interest expense	84,757			93,983
Depreciation and amortization	135,027			133,609
Impairment and other	3,127			5,392
Total expenses	418,427			435,028

Other, net	3,714			3,125
Gain on sale of property, net of tax	15,200			17,572

Net income	50,276			21,169
Net income attributable to non-controlling interests	(320		)	(347		)

Net income attributable to common stockholders	49,956			20,822
Net income available to participating securities	(102		)	(106		)

Net income available to common stockholders — basic and diluted	$	49,854		$	20,716

Weighted average common shares outstanding — basic	542,549,512			521,440,822
Weighted average common shares outstanding — diluted	543,904,420			521,871,494

Net income per common share — basic	$	0.09		$	0.04
Net income per common share — diluted	$	0.09		$	0.04

Dividends declared per common share	$	0.15		$	0.13

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 8

Supplemental Schedule 1



Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)

FFO Reconciliation	Q1 2020			Q1 2019
Net income available to common stockholders	$	49,854		$	20,716
Net income available to participating securities	102			106
Non-controlling interests	320			347
Depreciation and amortization on real estate assets	133,914			132,520
Impairment on depreciated real estate investments	2,471			3,253
Net gain on sale of previously depreciated investments in real estate	(15,200		)	(17,572		)
FFO	$	171,461		$	139,370

Core FFO Reconciliation	Q1 2020			Q1 2019
FFO	$	171,461		$	139,370
Noncash interest expense	10,391			14,865
Share-based compensation expense	4,101			5,607
Offering related expenses	—			1,543
Merger and transaction-related expenses	—			2,795
Severance expense	—			6,969
Unrealized gains on investment in equity securities	(34		)	—
Casualty losses, net	656			2,139
Core FFO	$	186,575		$	173,288

AFFO Reconciliation	Q1 2020			Q1 2019
Core FFO	$	186,575		$	173,288
Recurring capital expenditures	(25,988		)	(25,111		)
Adjusted FFO	$	160,587		$	148,177

Net income available to common stockholders
Weighted average common shares outstanding — diluted ⁽¹⁾	543,904,420			521,817,494

Net income per common share — diluted ⁽¹⁾	$	0.09		$	0.04

FFO
FFO for per share calculation⁽¹⁾	$	175,740		$	142,173
Weighted average common shares and OP Units outstanding — diluted ⁽¹⁾	562,886,872			543,717,533

FFO per share — diluted ⁽¹⁾	$	0.31		$	0.26

Core FFO and Adjusted FFO
Weighted average common shares and OP Units outstanding — diluted ⁽²⁾	547,786,429			531,226,791

Core FFO per share — diluted ⁽²⁾	$	0.34		$	0.33
AFFO per share — diluted ⁽²⁾	$	0.29		$	0.28

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 9

(1)

In accordance with GAAP and Nareit guidelines, net income per share and FFO per share are calculated as if the 2019 Convertible Notes were converted to common shares at the beginning of 2019, and as if the 2022 Convertible Notes were converted to common shares at the beginning of each relevant period in 2019 and 2020, unless such treatment is anti-dilutive to net income per share or FFO per share.

In Q1 2020, treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to net income per share and dilutive to FFO per share. As such, Q1 2020 net income per share does not treat the 2022 Convertible Notes as if converted. Q1 2020 FFO per share treats the 2022 Convertible Notes as if converted, thereby adjusting FFO in the numerator to remove the interest expense associated with the 2022 Convertible Notes and adjusting shares outstanding in the denominator to include shares issuable on conversion of the 2022 Convertible Notes.

In Q1 2019, treatment of the 2019 Convertible Notes as if converted would be anti-dilutive to net income per share and dilutive to FFO per share. Treatment of the 2022 Convertible Notes as if converted would be anti-dilutive to both net income per share and FFO per share. As such, Q1 2019 net income per share treats neither the 2019 Convertible Notes nor the 2022 Convertible Notes as if converted. Q1 2019 FFO per share treats the 2019 Convertible Notes as if converted, thereby adjusting FFO in the numerator to remove the interest expense associated with the 2019 Convertible Notes and adjusting shares outstanding in the denominator to include shares issuable on conversion of the 2019 Convertible Notes, but does not treat the 2022 Convertible Notes as if converted.


(2)	Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period.

As such, Q1 2020 Core FFO and AFFO per share reflect the conversion of the 2019 Convertible Notes, but do not treat the 2022 Convertible Notes as if converted.

Q1 2019 Core FFO and AFFO per share treat neither the 2019 Convertible Notes nor the 2022 Convertible Notes as if converted.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 10

Supplemental Schedule 2(a)



Diluted Shares Outstanding
(unaudited)

Weighted Average Amounts for Net Income ⁽¹⁾	Q1 2020	Q1 2019
Common shares — basic	542,549,512	521,440,822
Shares potentially issuable from vesting/conversion of equity-based awards	1,354,908	376,672
Total common shares — diluted	543,904,420	521,817,494

Weighted average amounts for FFO ⁽¹⁾	Q1 2020	Q1 2019
Common shares — basic	542,549,512	521,440,822
OP units — basic	3,463,285	8,688,586
Shares potentially issuable from vesting/conversion of equity-based awards	1,773,632	1,097,383
Shares issuable from Convertible Notes	15,100,443	12,490,742
Total common shares and units — diluted	562,886,872	543,717,533

Weighted average amounts for Core and AFFO ⁽²⁾	Q1 2020	Q1 2019
Common shares — basic	542,549,512	521,440,822
OP units — basic	3,463,285	8,688,586
Shares potentially issuable from vesting/conversion of equity-based awards	1,773,632	1,097,383
Total common shares and units — diluted	547,786,429	531,226,791

	March 31,
Period end amounts for Core FFO, and AFFO	2020
Common shares	543,767,445
OP units	3,463,285
Shares potentially issuable from vesting/conversion of equity-based awards	935,727
Total common shares and units — diluted	548,166,457

(1)


(2)	Core FFO and AFFO per share reflect the 2019 Convertible Notes and 2022 Convertible Notes in the form in which they were outstanding during each period. See "Supplemental Schedule 1," footnote (2), for more detail on the treatment of convertible notes in each specific period presented in the table.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 11

Supplemental Schedule 2(b)



Debt Structure and Leverage Ratios — March 31, 2020
($ in thousands) (unaudited)
							Wtd Avg		Wtd Avg
							Interest		Years
Debt Structure	Balance			% of Total			Rate ⁽¹⁾		to Maturity ⁽²⁾
Secured:
Fixed ⁽³⁾	$	1,401,497		16.1	%		4.0	%	8.3
Floating — swapped to fixed	5,020,000			57.8	%		3.5	%	4.9
Floating	143,628			1.7	%		2.4	%	5.5
Total secured	6,565,125			75.6	%		3.6	%	5.6

Unsecured:
Fixed (Convertible)	345,000			4.0	%		3.5	%	1.8
Floating — swapped to fixed	1,500,000			17.3	%		3.6	%	1.9
Floating	270,000			3.1	%		2.7	%	1.9
Total unsecured	2,115,000			24.4	%		3.4	%	1.8

Total Debt:
Fixed + floating swapped to fixed ⁽³⁾	8,266,497			95.2	%		3.6	%	4.8
Floating	413,628			4.8	%		2.6	%	3.1
Total debt	8,680,125			100.0	%		3.5	%	4.7
Unamortized discounts on notes payable	(11,994		)
Deferred financing costs, net	(29,326		)
Total Debt per Balance Sheet	8,638,805
Retained and repurchased certificates	(314,093		)
Cash, ex-security deposits ⁽⁴⁾	(365,175		)
Deferred financing costs, net	29,326
Unamortized discounts on notes payable	11,994
Net debt	$	8,000,857

Leverage Ratios	Mar 31, 2020
Net debt / TTM Adjusted EBITDAre	8.0		x

Unsecured Facility Covenant Compliance ⁽⁵⁾	Mar 31, 2020			Covenant Limit
Total leverage ratio	33.5		%	65.0%		(maximum)
Secured leverage ratio	24.5		%	55.0%		(maximum)
Unencumbered leverage ratio	13.2		%	65.0%		(maximum)
Fixed charge coverage ratio	3.6x			1.5x		(minimum)
Unencumbered fixed charge coverage ratio	7.1x			1.5x		(minimum)


(1)	Includes the impact of interest rate swaps in place and effective as of March 31, 2020.


(2)	Assumes all extension options are exercised.


(3)	For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.


(4)	Represents cash and cash equivalents and the non-security deposit portion of restricted cash.


(5)	Covenant calculations are specifically defined in the Company's Revolving Credit and Term Loan Agreement, and summarized in the "Glossary and Reconciliations" section of this report.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 12

Supplemental Schedule 2(c)



Debt Maturity Schedule — March 31, 2020
($ in thousands) (unaudited)
							Revolving
	Secured			Unsecured			Credit					% of
Debt Maturities, with Extensions ⁽¹⁾	Debt			Debt			Facility		Balance			Total
2020	—			—			—		—			—	%
2021	—			—			—		—			—	%
2022	—			1,845,000			270,000		2,115,000			24.5	%
2023	739,955			—			—		739,955			8.5	%
2024	619,596			—			—		619,596			7.1	%
2025	2,872,227			—			—		2,872,227			33.1	%
2026	931,849			—			—		931,849			10.7	%
2027	998,034			—			—		998,034			11.5	%
Thereafter	403,464			—			—		403,464			4.6	%
	6,565,125			1,845,000			270,000		8,680,125			100.0	%
Unamortized discounts on notes payable	(2,553		)	(9,441		)	—		(11,994		)
Deferred financing costs, net	(23,795		)	(5,531		)	—		(29,326		)
Total per Balance Sheet	$	6,538,777		$	1,830,028		$	270,000	$	8,638,805


(1)	Assumes all extension options are exercised.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 13

Supplemental Schedule 2(d)



Cost to Maturity of Debt as of March 31, 2020
($ in thousands) (unaudited)

			Percentage of Weighted Average Debt Outstanding by Type								Weighted Average Cost by Instrument Type
	Weighted Average		Issued		Issued				Total		Spread to		Fixed Cost				Total Debt
	Amount of		Floating		Floating				Fixed		LIBOR		of				Including
	Debt		and		but Swapped		Issued		or Swapped		For Floating		Interest Rate		Fixed Rate		Swap
	Outstanding ⁽¹⁾		Not Swapped		to Fixed		Fixed		to Fixed		Rate Debt		Swaps		Debt		Impact ⁽²⁾
2Q-4Q20	$	8,680,125	4.8	%	75.1	%	20.1	%	95.2	%	1.4	%	2.3	%	3.9	%	3.7	%
2021	8,680,125		7.7	%	72.2	%	20.1	%	92.3	%	1.4	%	2.5	%	3.9	%	3.8	%
2022	6,758,727		1.6	%	77.5	%	20.9	%	98.4	%	1.3	%	2.7	%	4.0	%	4.0	%
2023	5,843,414		—	%	76.4	%	23.6	%	100.0	%	1.3	%	2.8	%	4.0	%	4.1	%
2024	5,787,925		—	%	76.2	%	23.8	%	100.0	%	1.3	%	2.8	%	4.0	%	4.1	%
2025	3,488,885		15.7	%	44.1	%	40.2	%	84.3	%	1.4	%	3.0	%	4.0	%	3.9	%
2026	1,424,473		1.6	%	—	%	98.4	%	98.4	%	1.4	%	N/A		4.0	%	4.0	%
2027	840,957		—	%	—	%	100.0	%	100.0	%	N/A		N/A		3.9	%	3.9	%
2028	403,464		—	%	—	%	100.0	%	100.0	%	N/A		N/A		3.6	%	3.6	%
Thereafter⁽³⁾	403,464		—	%	—	%	100.0	%	100.0	%	N/A		N/A		3.6	%	3.6	%


(1)	In each period, represents March 31, 2020 debt that remains outstanding assuming all debt is held until final maturity with all extension options exercised.


(2)	Assumes March 31, 2020 LIBOR rate of 0.99% for all future periods.


(3)	For the purposes of this table, IH 2019-1, a twelve-year secured term loan reaching final maturity in 2031 that bears interest at a fixed rate for the first 11 years and a floating rate in the twelfth year, is reflected as fixed rate debt.

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, 2020, as well as the rate for 30-day LIBOR as of March 31, 2020. New debt not presented in this table may be issued, and/or existing debt presented in this table may be repaid prior to maturity. Similarly, new interest rate swaps may be put in place. 30-day LIBOR may also change. The aforementioned activities may change the amount of outstanding debt, the percentage of debt floating, swapped, or fixed, and/or the weighted average cost of debt and hedging instruments from what is presented in Schedule 2(d).

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 14

Supplemental Schedule 3(a)



Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)

Number of Homes, period-end	Q1 2020			Q1 2019
Total portfolio	79,525			80,361
Same Store portfolio	72,707
Same Store % of Total	91.4		%

Core Revenues	Q1 2020			Q1 2019		Change YoY
Total portfolio	$	429,748		$	418,954	2.6	%
Same Store portfolio	402,294			385,123		4.5	%

Core Operating expenses	Q1 2020			Q1 2019		Change YoY
Total portfolio	$	146,875		$	143,800	2.1	%
Same Store portfolio	135,269			128,408		5.3	%

Net Operating Income	Q1 2020			Q1 2019		Change YoY
Total portfolio	$	282,873		$	275,154	2.8	%
Same Store portfolio	267,025			256,715		4.0	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 15

Supplemental Schedule 3(b)



Same Store Portfolio Operating Detail
($ in thousands) (unaudited)

							Change					Change
	Q1 2020			Q1 2019			YoY		Q4 2019			Seq
Revenues:
Rental revenues	$	388,447		$	372,919		4.2	%	$	383,351		1.3	%
Other property income ⁽¹⁾	32,623			27,292			19.5	%	31,308			4.2	%
Total revenues	421,070			400,211			5.2	%	414,659			1.5	%
Less: Resident recoveries ⁽¹⁾	(18,776		)	(15,088		)	24.4	%	(17,288		)	8.6	%
Core revenues	402,294			385,123			4.5	%	397,371			1.2	%

Fixed Expenses:
Property taxes	69,603			66,319			5.0	%	69,483			0.2	%
Insurance expenses	7,927			7,515			5.5	%	7,991			(0.8	)%
HOA expenses, net	8,251			8,496			(2.9	)%	8,056			2.4	%

Controllable Expenses:
Repairs and maintenance ⁽²⁾	20,199			17,024			18.7	%	20,528			(1.6	)%
Personnel	15,139			16,236			(6.8	)%	14,608			3.6	%
Turnover ⁽²⁾	10,008			8,397			19.2	%	10,121			(1.1	)%
Utilities ⁽¹⁾	17,597			14,496			21.4	%	17,573			0.1	%
Leasing and marketing ⁽³⁾	2,858			2,690			6.2	%	2,904			(1.6	)%
Property administrative	2,463			2,323			6.0	%	2,277			8.2	%
Property operating and maintenance expenses	154,045			143,496			7.4	%	153,541			0.3	%
Less: Resident recoveries ⁽¹⁾	(18,776		)	(15,088		)	24.4	%	(17,288		)	8.6	%
Core operating expenses	135,269			128,408			5.3	%	136,253			(0.7	)%

Net Operating Income	$	267,025		$	256,715		4.0	%	$	261,118		2.3	%

(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)	See "Supplemental Schedule 6" for additional detail related to the Company's cost to maintain, which includes both the expensed and capitalized portions of repairs & maintenance and turnover spend.


(3)	Same Store leasing and marketing expense includes amortization of leasing commissions of $2,600, $2,428, and $2,645 for Q1 2020, Q1 2019, and Q4 2019, respectively.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 16

Supplemental Schedule 3(c)



Same Store Quarterly Operating Trends
(unaudited)

	Q1 2020			Q4 2019			Q3 2019			Q2 2019			Q1 2019

Average occupancy	96.7		%	96.0		%	96.0		%	96.5		%	96.5		%
Turnover rate	6.3		%	6.3		%	8.7		%	8.2		%	6.3		%
Trailing four quarters turnover rate	29.5		%	29.5		%	N/A			N/A			N/A
Average monthly rent	$	1,851		$	1,838		$	1,823		$	1,802		$	1,782
Rental rate growth (lease-over-lease):
Renewals	4.3		%	4.5		%	4.7		%	5.3		%	5.2		%
New leases	1.7		%	1.3		%	4.2		%	5.2		%	3.7		%
Blended	3.4		%	3.2		%	4.6		%	5.3		%	4.7		%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q1 2020 Earnings Release and Supplemental Information — page 17

Supplemental Schedule 4



Portfolio Characteristics — As of and for the Quarter Ended March 31, 2020 ⁽¹⁾
(unaudited)
						Average
	Number of	Average		Average		Monthly		Percent of
	Homes	Occupancy		Monthly Rent		Rent PSF		Revenue
Western United States:
Southern California	8,029	96.1	%	$	2,482	$	1.46	13.5	%
Northern California	4,339	95.4	%	2,164		1.40		6.6	%
Seattle	3,552	92.7	%	2,272		1.19		5.5	%
Phoenix	7,843	93.9	%	1,424		0.87		7.7	%
Las Vegas	3,006	93.8	%	1,663		0.84		3.4	%
Denver	2,305	90.3	%	2,054		1.14		3.2	%
Western US Subtotal	29,074	94.3	%	2,009		1.17

Invitation Homes Inc. (INVH) SEC Filing 10-Q Quarterly report for the period ending Tuesday, March 31, 2020

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