Invitation Homes(US:INVH)2022-02-22 18:26Financial Performance - Total revenues for the year ended December 31, 2021, were $1,996.6 million, a 9.5% increase from $1,822.8 million in 2020 [367]. - Rental revenues and other property income increased to $1,991.7 million in 2021, up 9.3% from $1,822.8 million in 2020, driven by higher occupancy and average monthly rent [368]. - Net income for 2021 was $262.8 million, reflecting a 33.1% increase from $197.4 million in 2020 [363]. - Total expenses increased to $1,777.0 million in 2021, a 3.9% rise from $1,709.6 million in 2020 [376]. - Interest expense decreased to $322.7 million in 2021 from $353.9 million in 2020, primarily due to refinancing activities [380]. - The company reported a net income available to common stockholders of $261,098,000 for the year ended December 31, 2021, an increase of 33.3% from $195,764,000 in 2020 [432]. - The company’s EBITDA for 2021 was $1,180,085,000, representing an increase of 6.9% from $1,103,902,000 in 2020 [432]. - Adjusted EBITDAre for 2021 was $1,171,185,000, compared to $1,038,058,000 in 2020, marking a growth of 12.8% [432]. - FFO for 2021 was $788,773, representing a 13.7% increase from $693,852 in 2020 [446]. - Core FFO for 2021 was $868,966, up 20.9% from $718,353 in 2020 [446]. - Adjusted FFO for 2021 reached $745,561, a 23.7% increase compared to $602,402 in 2020 [446]. - Net income per common share — diluted for 2021 was $0.45, compared to $0.35 in 2020, reflecting a 28.6% increase [446]. - FFO per common share — diluted for 2021 was $1.35, up from $1.24 in 2020, indicating an 8.9% growth [446]. - Core FFO per common share — diluted for 2021 was $1.49, an increase of 16.4% from $1.28 in 2020 [446]. - AFFO per common share — diluted for 2021 was $1.28, compared to $1.08 in 2020, marking an 18.5% rise [446]. Property Management and Operations - The company has made significant investments in technology systems to support scalability, including lease management and property accounting systems, enhancing resident experience through digital tools [104]. - Property operating expenses include property taxes, insurance, and maintenance costs, which are capitalized before a property is "rent-ready" and expensed thereafter [350]. - The company actively engages with third-party vendors to mitigate risks associated with technology system failures and security breaches [105]. - The company is subject to various laws and regulations, including the Fair Housing Act, ensuring compliance to avoid discrimination in housing [110]. - The company recognizes depreciation and amortization expenses associated with homes and capital expenditures over their expected useful lives [356]. - The Same Store portfolio consisted of 72,245 single-family rental homes as of December 31, 2021 [366]. - The company owned 82,381 single-family rental homes as of December 31, 2021, compared to 80,177 homes in 2020, with acquisitions of 2,938 homes in 2021 [364]. - The company acquired 80 homes held for sale as of December 31, 2021, which is less than 0.1% of its total portfolio, down from 179 homes in 2020 [428]. - The company’s total property management expense was $71,597,000 in 2021, up from $58,613,000 in 2020, indicating a rise of 22.1% [442]. - The company’s total acquisition costs for homes include legal fees, bidding service, and title fees, which are capitalized as part of the investment in each property [423]. Debt and Financing - The company has historically utilized indebtedness to fund acquisitions and renovations, with current financing arrangements containing financial covenants and variable interest rate terms [121]. - As of December 31, 2021, total debt amounted to $7,998.7 million, with net debt at $7,253.6 million [391]. - The company aims to reduce net debt to approximately 5.5 to 6.0 times trailing twelve months Adjusted EBITDAre and secure debt to less than 20% of gross assets [394]. - The undrawn balance of the Revolving Facility was $1 billion as of December 31, 2021, providing a potential liquidity source [399]. - The company plans to satisfy long-term liquidity needs through cash from operations, long-term borrowings, and the issuance of debt and equity securities [400]. - As of December 31, 2021, the weighted average interest rate on total debt was 3.45% [391]. - The company issued $300 million of unsecured notes in May 2021 and used the proceeds to repay $300 million of high-cost securitizations maturing between December 2024 and January 2026 [390]. - In August 2021, the company raised $650 million through unsecured notes, repaying $635.3 million of high-cost securitizations [390]. - A total of $1 billion in unsecured notes was issued in November 2021, with proceeds used to repay $798.2 million of various securitizations and for general corporate purposes [390]. - The company generated net proceeds of $571.2 million from the sale of 14,375,000 shares of common stock in a public offering, primarily for acquisitions [390]. - The company issued $1,938.0 million in unsecured notes in 2021, which were used to repay $1,766.9 million of mortgage loans [415]. Cash Flow and Investments - Net cash provided by operating activities increased by 30.3% from $696.7 million in 2020 to $907.7 million in 2021, driven by improved operational profitability [412][413]. - Net cash used in investing activities rose significantly by 172.7%, from $425.2 million in 2020 to $1,159.6 million in 2021, primarily due to increased acquisition costs of homes [412][414]. - The number of homes acquired increased from 2,252 in 2020 to 2,938 in 2021, contributing to a $505.1 million rise in acquisition spending [414]. - Net cash provided by financing activities was $659.0 million in 2021, a substantial increase from a net cash used of $(146.0) million in 2020 [415]. - Cash deposited and held by others increased by $59.2 million due to higher deposits made for the acquisition of new-build single-family residential properties [414]. - The company has commitments to acquire 360 single-family rental homes and an additional 1,357 homes over the next six years, totaling approximately $420.0 million [406]. - Remaining equity commitments to joint ventures total $244.4 million as of December 31, 2021 [406]. Market and Competitive Environment - The company faces competition from various sources, including individual investors and private equity funds, which may impact property acquisition prices and rental rates [106]. - Seasonal factors affect the business, with higher resident move-outs during summer months impacting rental revenues and turnover costs [108]. - The transition from LIBOR to a successor rate is expected to require significant management attention, although it is not anticipated to materially affect financing costs [407].