First Quarter 2018 Highlights

  • Year-over-year, total revenues increased 77.5% to $424 million, total property operating and maintenance expenses increased 82.3% to $161 million, and net loss attributable to common shareholders decreased to $17 million.
  • Core FFO per share increased 13.7% year-over-year to $0.29 per share in the first quarter of 2018.
  • Same Store NOI grew 3.6% year-over-year on 4.1% Same Store Core revenue growth and 5.1% Same Store Core operating expense growth.
  • Continued strong Same Store renewal rent growth of 4.9% and seasonally accelerating new lease rent growth of 2.5% drove Same Store blended rent growth of 4.0% in the first quarter of 2018.
  • Same Store average occupancy was 95.7% in the first quarter of 2018.
  • As previously announced, in February 2018, Invitation Homes closed a $0.9 billion, seven-year (inclusive of extension options) mortgage loan with total cost of funds of LIBOR + 124 basis points. Subsequent to quarter end, in May 2018 the Company closed a $1.1 billion, seven-year (inclusive of extension options) mortgage loan with total cost of funds of LIBOR + 138 basis points. Net proceeds from the two transactions were used to repay existing floating rate secured debt. After giving effect to these refinancings, the Company’s weighted average maturity has been extended to 5.0 years, and annual run-rate cash net interest expense savings are expected to be approximately $14 million.
  • Subsequent to quarter end, the Company closed $2.5 billion of forward-starting interest rate swaps. After giving effect to these swaps, and based on the Company’s current capital structure, the percentage of debt that will be fixed rate or swapped to fixed rate increases to 87% in January 2019.
  • Merger integration remains on track, and the Company continues to expect $45 – $50 million of annual run-rate cost synergies by mid-2019, with additional upside possible as best practices are implemented across the organization.

Chief Executive Officer Fred Tuomi comments

“Fundamentals in our markets remain favorable, and we believe that the quality of our locations, homes, and resident service continue to differentiate Invitation Homes in the marketplace. We achieved another strong quarter of approximately 5% renewal rent growth in first quarter, while turnover moved even lower to

7.6%. As expected, new lease rent growth improved seasonally in first quarter and continues to grow as we enter the peak leasing season. We believe that we remain on track to achieve our 2018 guidance, including 5 – 6% Same Store NOI growth for the full year 2018.

“The merger integration also continues to progress according to plan, and we remain confident in our ability to achieve the synergies we committed to residents, team members, and shareholders.”

Full report below.

Invitation Homes Reports First Quarter 2018 Results