Correcting and replacing invitation homes reports fourth quarter 2022 and full year 2022 results
Dallas--(business wire)--the figures in the q3 2022 column of the reconciliation of net income to same store noi, quarterly table in the glossary and reconciliations section of the press release have been updated to correct for typographical errors. other than the correction of these errors, no other changes have been made to the original press release. the updated release reads: invitation homes reports fourth quarter 2022 and full year 2022 results invitation homes inc. (nyse: invh) ("invitation homes" or the "company"), the nation's premier single-family home leasing company, today announced its fourth quarter 2022 and full year ("fy") 2022 financial and operating results. fourth quarter 2022 and fy 2022 highlights year over year, in q4 2022, total revenues increased 11.5% to $580 million, and property operating and maintenance costs increased 17.8% to $210 million. in fy 2022, total revenues increased 12.1% to $2,238 million, and property operating and maintenance costs increased 11.4% to $786 million. in q4 2022, net income available to common stockholders totaled $100 million or $0.16 per diluted common share. in fy 2022, net income available to common stockholders totaled $383 million or $0.63 per diluted common share. year over year, in q4 2022, core ffo per share increased 10.6% to $0.43, and affo per share increased 9.2% to $0.36. in fy 2022, core ffo per share increased 11.6% to $1.67, and affo per share increased 10.2% to $1.41. in q4 2022, same store noi increased 3.7% year over year on 7.6% same store core revenues growth and 16.3% same store core operating expenses growth. in fy 2022, same store noi grew 9.1% year over year on 9.0% same store core revenues growth and 8.6% same store core operating expenses growth. in q4 2022, same store average occupancy was 97.3%, down 80 basis points year over year. in fy 2022, same store average occupancy was 97.7%, down 50 basis points year over year. in q4 2022, same store new lease rent growth of 7.4% and same store renewal rent growth of 9.9% drove same store blended rent growth of 9.1%, down 200 basis points year over year. in fy 2022, same store new lease rent growth of 13.5% and same store renewal rent growth of 10.0% drove same store blended rent growth of 10.9%, up 210 basis points year over year. in q4 2022, acquisitions by the company and the company's joint ventures totaled 166 homes for $64 million while dispositions totaled 199 homes for $67 million. in fy 2022, acquisitions by the company and the company's joint ventures totaled 2,502 homes for $1,084 million while dispositions totaled 726 homes for $269 million. as previously announced in december 2022, the company voluntarily prepaid without penalty the outstanding balance of its ih 2018-1 securitization, after drawing the remaining $575 million available under its seven-year unsecured delayed draw term loan that closed in june 2022. as of december 31, 2022, the company's earliest debt maturity is now due in 2026, 83.1% of the company's wholly owned properties were unencumbered, 73.7% of the company's debt was unsecured, and 99.2% of the company's debt remained at fixed or swapped to fixed rates. president & chief executive officer dallas tanner comments: "we're pleased to report our fourth quarter and full year 2022 financial and operating results, which reflect the hard work of our associates to deliver an outstanding experience and worry-free lifestyle to our residents. demand for leasing a single-family home remained strong in the fourth quarter of 2022, as evidenced by our 97.3% same store average occupancy and 9.1% same store blended rental rate growth. further, we anticipate this strong demand to continue in 2023, along with a lack of sufficient housing supply. with the convenience and premier service we provide our residents, the accessibility our homes offer to great neighborhoods, schools, and job centers, and the thousands of homes we're bringing to market through our homebuilder partners over the next few years, we believe we remain well positioned as a meaningful part of the solution for high quality and flexible housing options." 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. financial results net income, ffo, core ffo, and affo per share — diluted q4 2022 q4 2021 fy 2022 fy 2021 net income $ 0.16 $ 0.12 $ 0.63 $ 0.45 ffo 0.40 0.35 1.51 1.35 core ffo 0.43 0.39 1.67 1.49 affo 0.36 0.33 1.41 1.28 net income net income per share for q4 2022 was $0.16, compared to net income per share of $0.12 for q4 2021. total revenues and total property operating and maintenance expenses for q4 2022 were $580 million and $210 million, respectively, compared to $520 million and $178 million, respectively, for q4 2021. net income per share for fy 2022 was $0.63, compared to net income per share of $0.45 for fy 2021. total revenues and total property operating and maintenance expenses for fy 2022 were $2,238 million and $786 million, respectively, compared to $1,997 million and $706 million, respectively, for fy 2021. core ffo year over year, core ffo per share for q4 2022 increased 10.6% to $0.43, primarily due to noi growth. year over year, core ffo per share for fy 2022 increased 11.6% to $1.67, primarily due to noi growth and interest expense savings. affo year over year, affo per share for q4 2022 increased 9.2% to $0.36, primarily due to the increase in core ffo per share described above. year over year, affo per share for fy 2022 increased 10.2% to $1.41, 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: 74,646 q4 2022 q4 2021 fy 2022 fy 2021 core revenues growth (year over year) 7.6 % 9.0 % core operating expenses growth (year over year) 16.3 % 8.6 % noi growth (year over year) 3.7 % 9.1 % average occupancy 97.3 % 98.1 % 97.7 % 98.2 % bad debt % of gross rental revenues (1) 2.0 % 1.0 % 1.5 % 1.4 % turnover rate 5.3 % 4.7 % 21.9 % 23.1 % rental rate growth (lease-over-lease): renewals 9.9 % 8.9 % 10.0 % 6.7 % new leases 7.4 % 17.1 % 13.5 % 14.4 % blended 9.1 % 11.1 % 10.9 % 8.8 % (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 q4 2022 q3 2022 q2 2022 q1 2022 pre-covid average (2) revenues collected % of revenues due: (1) revenues collected in same month billed 91 % 91 % 92 % 91 % 96 % late collections of prior month billings 6 % 6 % 7 % 6 % 3 % total collections 97 % 97 % 99 % 97 % 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 74,646 homes, same store noi for q4 2022 increased 3.7% year over year on same store core revenues growth of 7.6% and same store core operating expenses growth of 16.3%. fy 2022 same store noi increased 9.1% year over year on same store core revenues growth of 9.0% and same store core operating expenses growth of 8.6%. same store core revenues same store core revenues growth for q4 2022 of 7.6% year over year was primarily driven by a 9.4% increase in average monthly rent, and a 16.0% increase in other income, net of resident recoveries, offset by an 80 basis points year over year decline in average occupancy and a 100 basis points year over year increase in bad debt as a percentage of gross rental revenue. the year over year decline in average occupancy was largely attributable to higher vacancy due to increased turnover. bad debt remained a headwind in q4 2022 due in part to an outsized impact in california and more specifically, los angeles county, where ordinances continue to restrict residential lease compliance options. fy 2022 same store core revenues growth of 9.0% year over year was primarily driven by a 9.2% increase in average monthly rent, and a 22.9% increase in other income, net of resident recoveries, offset by a 50 basis points year over year decline in average occupancy and a 10 basis points year over year increase in bad debt as a percentage of gross rental revenue. same store core operating expenses same store core operating expenses for q4 2022 increased 16.3% year over year, primarily driven by higher property tax expense as a result of an outsized catchup in q4 2022 following an underaccrual in the first three quarters of 2022, higher turnover expense as a result of higher turnover, and inflationary pressures. fy 2022 same store core operating expenses increased 8.6% year over year, primarily driven by inflationary pressures. investment management activity acquisitions for q4 2022 totaled 166 homes for $64 million through multiple acquisition channels. this included 150 wholly owned homes for $58 million in addition to 16 homes for $6 million in the company's joint ventures. dispositions for q4 2022 included 185 wholly owned homes for gross proceeds of $61 million and 14 homes for gross proceeds of $6 million in the company's joint ventures. in fy 2022, the company acquired 2,502 homes for $1,084 million, including 1,423 wholly owned homes for $601 million and 1,079 homes for $483 million in the company's joint ventures. the company also sold 726 homes for $269 million, including 691 wholly owned homes for $253 million and 35 homes for $16 million in the company's joint ventures. balance sheet and capital markets activity as of december 31, 2022, the company had $1,263 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 december 31, 2022 was $7,834 million, consisting of $5,775 million of unsecured debt and $2,059 million of secured debt. net debt / ttm adjusted ebitdare was 5.7x at december 31, 2022, down from 6.2x as of december 31, 2021. as previously announced in december 2022, the company voluntarily prepaid without penalty the outstanding balance of its ih 2018-1 securitization, after drawing the remaining $575 million available under its seven-year unsecured delayed draw term loan that closed in june 2022. as of december 31, 2022, the company's earliest debt maturity is now due in 2026, 83.1% of the company's wholly owned properties were unencumbered, 73.7% of the company's debt was unsecured, and 99.2% of the company's debt remained at fixed or swapped to fixed rates. dividend as previously announced on february 3, 2023, the company's board of directors declared a quarterly cash dividend of $0.26 per share of common stock, representing an 18.2% increase over the prior quarterly dividend of $0.22 per share. the dividend will be paid on or before february 28, 2023, to stockholders of record as of the close of business on february 14, 2023. fy 2023 guidance details 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. fy 2023 guidance fy 2023 guidance fy 2022 actual core ffo per share — diluted $1.73 to $1.81 $1.67 affo per share — diluted $1.43 to $1.51 $1.41 same store core revenues growth(1) 5.25% to 6.25% 9.0% same store core operating expenses growth(2) 7.5% to 9.5% 8.6% same store noi growth 4.0% to 5.5% 9.1% wholly owned acquisitions(3) $250 million to $300 million $601 million jv acquisitions(3) $100 million to $300 million $483 million wholly owned dispositions $250 million to $300 million $253 million (1) embedded within the assumptions for this guidance is slightly lower expected average occupancy versus 2022 due to anticipated higher turnover, as well as elevated bad debt of 25 to 75 basis points higher than 2022. (2) embedded within the assumptions for this guidance is an expected increase in property tax expense in a range of 6.5% to 7.5%, higher turnover operating and capital expense as a result of higher expected turnover in 2023, and expectations around continued inflationary pressures. because real estate taxes were underaccrued in the first three quarters of 2022, the company anticipates same store core operating expenses growth in the mid-teens for first quarter 2023 followed by sequential improvement during the remainder of the year, resulting in the expected range for full year 2023 of 7.5% to 9.5%. (3) guidance assumes modest acquisition activity in 2023, with wholly owned acquisitions primarily sourced from the company's builder partners. the company intends to maintain an opportunistic approach to growth on balance sheet and in its joint ventures based on actual market conditions throughout the year. bridge from fy 2022 results to fy 2023 guidance midpoint core ffo/sh fy 2022 reported result $ 1.67 impact from changes in: same store noi (1) 0.11 non-same store noi 0.04 joint venture impact 0.01 property management and g&a expense(2) (0.03 ) interest expense(3) (0.02 ) other (0.01 ) total change 0.10 fy 2023 guidance midpoint $ 1.77 (1) based on the 2023 same store pool, consisting of 77,290 homes as of january 2023. (2) assumes higher property management and g&a expense primarily attributable to inflationary pressures, investments in technology, and additional activities in the company's joint ventures. (3) $0.02 increase in interest expense is due to approximately $0.01 each from higher interest costs as a result of 2022 refinancing activity, and lower capitalized interest due to lower anticipated acquisition volume. earnings conference call information invitation homes has scheduled a conference call at 11:00 a.m. eastern time on february 16, 2023, to discuss results for the fourth quarter of 2022. the domestic dial-in number is 1-844-200-6205, and the international dial-in number is 1-929-526-1599. the access code is 890734. an audio webcast may be accessed at www.invh.com. a replay of the call will be available through march 18, 2023, and can be accessed by calling 1-866-813-9403 (domestic) or 1-929-458-6194 (international) and using the replay access code 635351, 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. about invitation homes invitation homes, an s&p 500 company, 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 and insurance costs, poor resident selection and defaults and non-renewals by the company's residents, the company's dependence on third parties for key services, risks related to the evaluation of properties, performance of the company's information technology systems, risks related to the company's indebtedness, and risks related to the potential negative impact of unfavorable global and united states economic conditions (including inflation and interest rates), uncertainty in financial markets, geopolitical tensions, natural disasters, climate change, and public health crises, including 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. 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 year ended december 31, 2021 (the "annual report"), as such factors may be updated from time to time in the company's periodic filings with the securities and exchange commission (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, in the annual report, 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. consolidated balance sheets ($ in thousands, except shares and per share data) december 31, 2022 december 31, 2021 (unaudited) assets: investments in single-family residential properties, net $ 17,030,374 $ 16,935,322 cash and cash equivalents 262,870 610,166 restricted cash 191,057 208,692 goodwill 258,207 258,207 investments in unconsolidated joint ventures 280,571 130,395 other assets, net 513,629 395,064 total assets $ 18,536,708 $ 18,537,846 liabilities: mortgage loans, net $ 1,645,795 $ 3,055,853 secured term loan, net 401,530 401,313 unsecured notes, net 2,518,185 1,921,974 term loan facilities, net 3,203,567 2,478,122 revolving facility — — convertible senior notes, net — 141,397 accounts payable and accrued expenses 198,423 193,633 resident security deposits 175,552 165,167 other liabilities 70,025 341,583 total liabilities 8,213,077 8,699,042 equity: stockholders' equity preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of december 31, 2022 and 2021 — — common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 611,411,382 and 601,045,438 outstanding as of december 31, 2022 and 2021, respectively 6,114 6,010 additional paid-in capital 11,138,463 10,873,539 accumulated deficit (951,220 ) (794,869 ) accumulated other comprehensive income (loss) 97,985 (286,938 ) total stockholders' equity 10,291,342 9,797,742 non-controlling interests 32,289 41,062 total equity 10,323,631 9,838,804 total liabilities and equity $ 18,536,708 $ 18,537,846 consolidated statements of operations ($ in thousands, except shares and per share amounts) q4 2022 q4 2021 fy 2022 fy 2021 (unaudited) (unaudited) (unaudited) revenues: rental revenues $ 524,330 $ 475,436 $ 2,028,931 $ 1,826,768 other property income 52,180 43,036 197,710 164,954 management fee revenues 3,326 1,753 11,480 4,893 total revenues 579,836 520,225 2,238,121 1,996,615 expenses: property operating and maintenance 209,615 177,883 786,351 706,162 property management expense 22,770 20,173 87,936 71,597 general and administrative 16,921 19,668 74,025 75,815 interest expense 78,409 79,121 304,092 322,661 depreciation and amortization 163,318 151,660 638,114 592,135 impairment and other 5,823 3,046 28,697 8,676 total expenses 496,856 451,551 1,919,215 1,777,046 gains (losses) on investments in equity securities, net 61 (3,597 ) (3,939 ) (9,420 ) other, net 344 (2,654 ) (11,261 ) (5,835 ) gain on sale of property, net of tax 21,213 14,558 90,699 60,008 losses from investments in unconsolidated joint ventures (3,736 ) (2,110 ) (9,606 ) (1,546 ) net income 100,862 74,871 384,799 262,776 net income attributable to non-controlling interests (290 ) (328 ) (1,470 ) (1,351 ) net income attributable to common stockholders 100,572 74,543 383,329 261,425 net income available to participating securities (146 ) (67 ) (661 ) (327 ) net income available to common stockholders — basic and diluted $ 100,426 $ 74,476 $ 382,668 $ 261,098 weighted average common shares outstanding — basic 611,427,853 598,076,066 609,770,610 577,681,070 weighted average common shares outstanding — diluted 612,206,225 599,827,368 611,112,396 579,209,523 net income per common share — basic $ 0.16 $ 0.12 $ 0.63 $ 0.45 net income per common share — diluted $ 0.16 $ 0.12 $ 0.63 $ 0.45 dividends declared per common share $ 0.22 $ 0.17 $ 0.88 $ 0.68 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 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; management fee revenues; 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 q4 2022 q4 2021 fy 2022 fy 2021 net income available to common stockholders $ 100,426 $ 74,476 $ 382,668 $ 261,098 net income available to participating securities 146 67 661 327 non-controlling interests 290 328 1,470 1,351 depreciation and amortization on real estate assets 161,029 149,753 629,301 585,101 impairment on depreciated real estate investments 72 — 310 650 net gain on sale of previously depreciated investments in real estate (21,213 ) (14,558 ) (90,699 ) (60,008 ) depreciation and net gain on sale of investments in unconsolidated joint ventures 2,051 315 4,907 254 ffo $ 242,801 $ 210,381 $ 928,618 $ 788,773 core ffo reconciliation q4 2022 q4 2021 fy 2022 fy 2021 ffo $ 242,801 $ 210,381 $ 928,618 $ 788,773 non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives(1) 6,819 8,729 24,326 34,520 share-based compensation expense 6,397 6,098 28,962 27,170 legal settlements(2) — — 7,400 — severance expense 61 557 314 1,057 casualty losses, net(1)(3) 5,849 3,046 28,485 8,026 (gains) losses on investments in equity securities, net (61 ) 3,597 3,939 9,420 core ffo $ 261,866 $ 232,408 $ 1,022,044 $ 868,966 affo reconciliation q4 2022 q4 2021 fy 2022 fy 2021 core ffo $ 261,866 $ 232,408 $ 1,022,044 $ 868,966 recurring capital expenditures(1) (41,090 ) (33,968 ) (156,147 ) (123,405 ) adjusted ffo $ 220,776 $ 198,440 $ 865,897 $ 745,561 net income available to common stockholders weighted average common shares outstanding — diluted 612,206,225 599,827,368 611,112,396 579,209,523 net income per common share — diluted $ 0.16 $ 0.12 $ 0.63 $ 0.45 ffo numerator for ffo per common share — diluted $ 242,801 $ 212,214 $ 928,618 $ 803,137 weighted average common shares and op units outstanding — diluted 614,172,679 611,140,145 613,669,133 593,735,669 ffo per share — diluted $ 0.40 $ 0.35 $ 1.51 $ 1.35 core ffo and adjusted ffo weighted average common shares and op units outstanding — diluted 614,172,679 602,631,795 613,669,133 582,442,466 core ffo per share — diluted $ 0.43 $ 0.39 $ 1.67 $ 1.49 affo per share — diluted $ 0.36 $ 0.33 $ 1.41 $ 1.28 (1) includes the company's share from unconsolidated joint ventures. (2) represents the estimated cost of a global settlement of a multistate putative class action regarding resident late fees. the settlement remains subject to court approval. (3) includes $5.0 million and $24.0 million of net estimated losses and damages related to hurricanes ian and nicole for the fourth quarter and year ended december 31, 2022, respectively. reconciliation of total revenues to same store core revenues, quarterly (in thousands) (unaudited) q4 2022 q3 2022 q2 2022 q1 2022 q4 2021 total revenues (total portfolio) $ 579,836 $ 568,675 $ 557,300 $ 532,310 $ 520,225 management fee revenues (3,326 ) (3,284 ) (2,759 ) (2,111 ) (1,753 ) total portfolio resident recoveries (32,639 ) (31,260 ) (29,394 ) (28,762 ) (26,967 ) total core revenues (total portfolio) 543,871 534,131 525,147 501,437 491,505 non-same store core revenues (52,846 ) (49,294 ) (45,033 ) (38,203 ) (34,995 ) same store core revenues $ 491,025 $ 484,837 $ 480,114 $ 463,234 $ 456,510 reconciliation of total revenues to same store core revenues, fy (in thousands) (unaudited) fy 2022 fy 2021 total revenues (total portfolio) $ 2,238,121 $ 1,996,615 management fee revenues (11,480 ) (4,893 ) total portfolio resident recoveries (122,055 ) (105,755 ) total core revenues (total portfolio) 2,104,586 1,885,967 non-same store core revenues (185,376 ) (124,456 ) same store core revenues $ 1,919,210 $ 1,761,511 reconciliation of property operating and maintenance expenses to same store core operating expenses, quarterly (in thousands) (unaudited) q4 2022 q3 2022 q2 2022 q1 2022 q4 2021 property operating and maintenance expenses (total portfolio) $ 209,615 $ 203,787 $ 190,680 $ 182,269 $ 177,883 total portfolio resident recoveries (32,639 ) (31,260 ) (29,394 ) (28,762 ) (26,967 ) core operating expenses (total portfolio) 176,976 172,527 161,286 153,507 150,916 non-same store core operating expenses (14,901 ) (15,553 ) (13,599 ) (13,151 ) (11,591 ) same store core operating expenses $ 162,075 $ 156,974 $ 147,687 $ 140,356 $ 139,325 reconciliation of property operating and maintenance expenses to same store core operating expenses, fy (in thousands) (unaudited) fy 2022 fy 2021 property operating and maintenance expenses (total portfolio) $ 786,351 $ 706,162 total portfolio resident recoveries (122,055 ) (105,755 ) core operating expenses (total portfolio) 664,296 600,407 non-same store core operating expenses (57,204 ) (41,598 ) same store core operating expenses $ 607,092 $ 558,809 reconciliation of net income to same store noi, quarterly (in thousands) (unaudited) q4 2022 q3 2022 q2 2022 q1 2022 q4 2021 net income available to common stockholders $ 100,426 $ 79,032 $ 110,815 $ 92,395 $ 74,476 net income available to participating securities 146 147 148 220 67 non-controlling interests 290 250 542 388 328 interest expense 78,409 76,454 74,840 74,389 79,121 depreciation and amortization 163,318 160,428 158,572 155,796 151,660 property management expense 22,770 22,385 21,814 20,967 20,173 general and administrative 16,921 20,123 19,342 17,639 19,668 impairment and other(1) 5,823 20,004 1,355 1,515 3,046 gain on sale of property, net of tax (21,213 ) (23,952 ) (27,508 ) (18,026 ) (14,558 ) (gains) losses on investments in equity securities, net (61 ) 796 172 3,032 3,597 other, net (344 ) 8,372 3,827 (594 ) 2,654 management fee revenues (3,326 ) (3,284 ) (2,759 ) (2,111 ) (1,753 ) loss from investments in unconsolidated joint ventures 3,736 849 2,701 2,320 2,110 noi (total portfolio) 366,895 361,604 363,861 347,930 340,589 non-same store noi (37,945 ) (33,741 ) (31,434 ) (25,052 ) (23,404 ) same store noi $ 328,950 $ 327,863 $ 332,427 $ 322,878 $ 317,185 reconciliation of net income to same store noi, fy (in thousands) (unaudited) fy 2022 fy 2021 net income available to common stockholders $ 382,668 $ 261,098 net income available to participating securities 661 327 non-controlling interests 1,470 1,351 interest expense 304,092 322,661 depreciation and amortization 638,114 592,135 property management expense 87,936 71,597 general and administrative 74,025 75,815 impairment and other(1) 28,697 8,676 gain on sale of property, net of tax (90,699 ) (60,008 ) losses on investments in equity securities, net 3,939 9,420 other, net 11,261 5,835 management fee revenues (11,480 ) (4,893 ) loss from investments in unconsolidated joint ventures 9,606 1,546 noi (total portfolio) 1,440,290 1,285,560 non-same store noi (128,172 ) (82,858 ) same store noi $ 1,312,118 $ 1,202,702 (1) includes $5.0 million and $24.0 million of net estimated losses and damages related to hurricanes ian and nicole for the fourth quarter and year ended december 31, 2022, respectively. reconciliation of net income to adjusted ebitdare (in thousands, unaudited) q4 2022 q4 2021 fy 2022 fy 2021 net income available to common stockholders $ 100,426 $ 74,476 $ 382,668 $ 261,098 net income available to participating securities 146 67 661 327 non-controlling interests 290 328 1,470 1,351 interest expense 78,409 79,121 304,092 322,661 interest expense in unconsolidated joint ventures 2,743 540 3,581 1,209 depreciation and amortization 163,318 151,660 638,114 592,135 depreciation and amortization of investments in unconsolidated joint ventures 2,372 565 5,838 1,304 ebitda 347,704 306,757 1,336,424 1,180,085 gain on sale of property, net of tax (21,213 ) (14,558 ) (90,699 ) (60,008 ) impairment on depreciated real estate investments 72 — 310 650 net gain on sale of investments in unconsolidated joint ventures (298 ) (250 ) (865 ) (1,050 ) ebitdare 326,265 291,949 1,245,170 1,119,677 share-based compensation expense 6,397 6,098 28,962 27,170 severance 61 557 314 1,057 casualty losses, net(1)(2) 5,849 3,046 28,485 8,026 (gains) losses on investments in equity securities, net (61 ) 3,597 3,939 9,420 other, net(3) (344 ) 2,654 11,261 5,835 adjusted ebitdare $ 338,167 $ 307,901 $ 1,318,131 $ 1,171,185 (1) includes $5.0 million and $24.0 million of net estimated losses and damages related to hurricanes ian and nicole for the fourth quarter and year ended december 31, 2022, respectively. (2) includes the company's share from unconsolidated joint ventures. (3) includes interest income and other miscellaneous income and expenses. reconciliation of net debt / trailing twelve months (ttm) adjusted ebitdare (in thousands, except for ratio) (unaudited) as of as of december 31, 2022 december 31, 2021 mortgage loans, net $ 1,645,795 $ 3,055,853 secured term loan, net 401,530 401,313 unsecured notes, net 2,518,185 1,921,974 term loan facility, net 3,203,567 2,478,122 revolving facility — — convertible senior notes, net — 141,397 total debt per balance sheet 7,769,077 7,998,659 retained and repurchased certificates (88,564 ) (159,110 ) cash, ex-security deposits and letters of credit (1) (275,989 ) (649,722 ) deferred financing costs, net 51,076 50,146 unamortized discounts on note payable 13,518 13,605 net debt (a) $ 7,469,118 $ 7,253,578 for the ttm ended for the ttm ended december 31, 2022 december 31, 2021 adjusted ebitdare (b) $ 1,318,131 $ 1,171,185 net debt / ttm adjusted ebitdare (a / b) 5.7x 6.2x (1) represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit
