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Invitation Homes Files Form 10-K and Reports 8.0% Same Store NOI Growth for 2016

DALLAS, March 30, 2017 /PRNewswire/ -- Invitation Homes Inc. (INVH) ("Invitation Homes" or the "Company") today announced that it has filed its Form 10-K for the fiscal year ended December 31, 2016.

In the fourth quarter of 2016, Invitation Homes achieved year-over-year Same Store NOI growth of 9.7%, driven by both strong rental rate growth and lower operating expenses.  Set forth below is certain information regarding the Company's performance for the three months ended December 31, 2016 and December 31, 2015.

Beginning with the quarter ending March 31, 2017, the first reporting period for which Invitation Homes was a public company, the Company plans to release Supplemental Earnings Information to provide further detail that it believes to be useful for evaluating its performance.  In addition, the Company plans to host a conference call in May 2017 to discuss its first quarter results and expectations for the full year 2017.  Details for the conference call will be provided via press release at a later date.

Selected Operating Metrics

For the Three Months
Ended December 31,



Same Store Portfolio

Revenue growth (1)


Operating expense growth (1)


NOI growth (1)


Core NOI margin



Average occupancy



Average monthly rent



Net effective rent growth:

New leases









Total Portfolio

Revenue growth


Operating expense growth


NOI growth (1)


Average occupancy



Average monthly rent




See the "Glossary" section of this press release for the definition of these measures, which are not calculated in accordance with Generally Accepted Accounting Principles in the U.S. ("GAAP"). See "Reconciliations of Non-GAAP Measures" for reconciliations of these measures to their most directly comparable financial measure calculated in accordance with GAAP.


Same Store NOI – For the Same Store portfolio of 36,469 homes, fourth quarter 2016 Same Store NOI increased 9.7% year-over-year on Same Store revenue growth of 4.9% and a decrease in Same Store operating expenses of 2.4%.  As a result, Core NOI margin increased to 63.6% in the fourth quarter of 2016 from 60.7% in the fourth quarter of 2015.

Same Store revenues – Year-over-year Same Store revenue growth of 4.9% was driven by higher rents and other property income, partially offset by lower occupancy.

Same Store operating expenses – Same Store operating expenses declined 2.4% year-over-year, driven primarily by lower personnel and turnover costs, partially offset by higher property taxes.


Average monthly rent represents the average of the contracted monthly rent for occupied properties in an identified population of homes over the course of the relevant period and reflects rent concessions amortized over the life of the related lease.

Average occupancy for an identified population of homes represents (i) the number of days that the homes available for lease in such population were occupied, divided by (ii) the total number of available days in the measurement period for the homes in that population of homes.

Core NOI margin for an identified population of homes is calculated by dividing NOI by total revenues, net of resident recoveries attributable to such population.

Net effective rent growth for any home represents the difference between the monthly rent from an expiring lease and the monthly rent from the next lease, in each case, net of any amortized concessions. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home.

NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. We define NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, homeowners' association fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs and marketing).  NOI excludes: interest expense; depreciation and amortization; general and administrative expense; property management expense; impairment and other; acquisition costs; (gain) loss on sale of property; and interest income and other miscellaneous income and expenses.  NOI is not used as a measure of our liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP.  Our NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI.  Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other companies.

Same Store or "Same Store portfolio" includes, for a given reporting period, homes that have been stabilized (defined as homes that have (i) completed an upfront renovation and (ii) entered into at least one post-renovation Invitation Homes lease) for at least 90 days prior to the first day of the prior-year measurement period and excludes homes that have been sold and homes that have been designated for sale but have not yet entered into a written sale agreement during such reporting period.  Same Store portfolios are established as of January 1st of each calendar year.  Therefore, any home included in the Same Store portfolio will have satisfied the conditions described in clauses (i) and (ii) above prior to October 3rd of the year prior to the first year of the comparison period.  We believe presenting information about the portion of our portfolio that has been fully operational for the entirety of a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods and about trends in our organic business.

Same Store operating expense is a non-GAAP measure representing property operating and maintenance expense attributable to our Same Store portfolio and is defined as Property operating and maintenance expenses, excluding Property operating and maintenance expenses attributable to non-Same Store homes.

Same Store revenue is a non-GAAP measure representing the revenue for a given period attributable to our Same Store portfolio and is defined as total revenues, excluding revenues generated by non-Same Store homes

Total homes or total portfolio refers to the total number of homes we own, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated.

Reconciliation of Non-GAAP Measures:

Reconciliation of Total Revenues to Same Store Total Revenues

(in thousands) (unaudited)

For the Three Months
Ended December 31,



% Change

Total revenues (Total portfolio)

$      234,551

$  216,685


Non-Same Store Total revenues



Total revenues (Same Store portfolio)

$      178,895

$  170,597



Reconciliation of Property Operating and Maintenance to Same Store Property Operating and Maintenance

(in thousands) (unaudited)

For the Three Months
Ended December 31,



% Change

Property operating and maintenance expenses (Total portfolio)

$        89,833

$    90,832


Non-Same Store Property operating and maintenance expenses



Property operating and maintenance expenses (Same Store portfolio)

$        66,442

$    68,106



Reconciliation of Net Loss to NOI and Same Store NOI

(in thousands) (unaudited)

For the Year Ended
December 31,

For the Three Months
Ended December 31,



% Change



% Change

Net loss




$      (38,542)

Interest expense





Depreciation and amortization





General and administrative





Property management expense





Impairment and other





Acquisition costs





(Gain) loss on sale of property










NOI (Total portfolio)







Non-Same Store NOI





NOI (Same Store portfolio)


$   404,572



$      102,491



About Invitation Homes:

Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes in desirable neighborhoods across America. With nearly 50,000 homes for lease in 13 markets across the country, Invitation Homes is meeting changing lifestyle demands by providing residents access to updated homes with features they value, such as close proximity to jobs and access to good schools.  The company's mission, "Together with you, we make a house a home," reflects its commitment to high-touch service that continuously enhances residents' living experiences and provides homes where individuals and families can thrive.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") 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 our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry sector and our business model, macroeconomic factors beyond our control, competition in identifying and acquiring our properties, competition in the leasing market for quality residents, increasing property taxes, homeowners' association ("HOA") and insurance costs, our dependence on third parties for key services, risks related to evaluation of properties, poor resident selection and defaults and non-renewals by our residents, performance of our information technology systems, and risks related to our indebtedness. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under Part I-Item 1A. "Risk Factors" of our most recent Annual Report on Form 10-K as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (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 our Annual Report and in our other periodic filings. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

Investor Relations Contact:
Greg Van Winkle
Phone: 844.456.INVH (4684)
Email: IR@InvitationHomes.com

Media Relations Contact:
Claire B. Parker
Phone: 202.257.2329
Email: Media@InvitationHomes.com


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