Invitation homes reports second quarter 2022 results
Dallas--(business wire)--invitation homes inc. (nyse: invh) ("invitation homes" or the "company"), the nation's premier single-family home leasing company, today announced its q2 2022 financial and operating results. second quarter 2022 highlights year over year, total revenues increased 13.4% to $557 million, property operating and maintenance costs increased 8.7% to $191 million, net income available to common stockholders increased 83.9% to $111 million, and net income per diluted common share increased 71.2% to $0.18. year over year, core ffo per share increased 13.2% to $0.42, and affo per share increased 11.9% to $0.36. same store noi increased 12.4% year over year on 10.4% same store core revenues growth and 6.2% same store core operating expenses growth. same store average occupancy was 98.0%, down 40 basis points year over year. same store new lease rent growth of 16.7% and same store renewal rent growth of 10.2% drove same store blended rent growth of 11.8%, up 380 basis points year over year. acquisitions by the company and the company's joint ventures totaled 955 homes for $426 million while dispositions totaled 183 homes for $74 million. as previously announced, the company entered into a new $725 million seven-year unsecured term loan on june 22, 2022. the sustainability-linked term loan bears interest at rates based on the company’s senior unsecured credit rating, which equated to an interest rate of adjusted term sofr plus 124 basis points at the time of closing based on the company’s current credit ratings. as previously announced, the company closed a public offering on april 5, 2022 of $600 million aggregate principal amount of 4.150% senior notes due in 2032 (the "notes"). the notes were priced at 99.739% of the principal amount and will mature on april 15, 2032. net proceeds were used to voluntarily prepay secured indebtedness. president & chief executive officer dallas tanner comments: "we're pleased to deliver another outstanding quarter of resident service and financial results. strong housing market fundamentals across the country continue to drive year over year new lease and renewal rent growth, while occupancy, resident retention and income-to-rent ratio for new residents remain strong. we're proud to offer high-quality, professionally managed homes and a valuable housing choice to the increasing share of americans who want to lease a home. as a result of excellent execution through the first half of the year, and supply and demand fundamentals remaining favorable in our markets, we have increased our guidance expectations for the full year. our new guidance includes a 100 basis point increase at the midpoint for same store noi to a range of 10.0% to 11.5%, and a $0.03 per share increase at the midpoint for core ffo to a range of $1.66 to $1.72 per share." financial results net income, ffo, core ffo, and affo per share — diluted q2 2022 q2 2021 ytd 2022 ytd 2021 net income $ 0.18 $ 0.11 $ 0.33 $ 0.21 ffo 0.39 0.32 0.77 0.65 core ffo 0.42 0.37 0.82 0.73 affo 0.36 0.32 0.71 0.63 net income net income per share for q2 2022 was $0.18, compared to net income per share of $0.11 for q2 2021. total revenues and total property operating and maintenance expenses for q2 2022 were $557 million and $191 million, respectively, compared to $492 million and $175 million, respectively, for q2 2021. net income per share for ytd 2022 was $0.33, compared to net income per share of $0.21 for ytd 2021. total revenues and total property operating and maintenance expenses for ytd 2022 were $1,090 million and $373 million, respectively, compared to $967 million and $344 million, respectively, for ytd 2021. core ffo year over year, core ffo per share for q2 2022 increased 13.2% to $0.42, primarily due to noi growth. year over year, core ffo per share for ytd 2022 increased 13.4% to $0.82, primarily due to noi growth. affo year over year, affo per share for q2 2022 increased 11.9% to $0.36, primarily due to the increase in core ffo per share described above. year over year, affo per share for ytd 2022 increased 11.9% to $0.71, 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: 75,215 q2 2022 q2 2021 ytd 2022 ytd 2021 core revenues growth (year over year) 10.4 % 10.0 % core operating expenses growth (year over year) 6.2 % 5.3 % noi growth (year over year) 12.4 % 12.2 % average occupancy 98.0 % 98.4 % 98.1 % 98.4 % bad debt % of gross rental revenues (1) 0.7 % 1.7 % 1.2 % 1.9 % turnover rate 5.8 % 6.8 % 10.3 % 12.1 % rental rate growth (lease-over-lease): renewals 10.2 % 5.8 % 10.0 % 5.1 % new leases 16.7 % 13.7 % 15.8 % 11.1 % blended 11.8 % 8.0 % 11.4 % 6.8 % (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 q2 2022 q1 2022 q4 2021 q3 2021 pre-covid average (2) revenues collected % of revenues due: (1) revenues collected in same month billed 92 % 91 % 92 % 92 % 96 % late collections of prior month billings 7 % 6 % 6 % 5 % 3 % total collections 99 % 97 % 98 % 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 75,215 homes, same store noi for q2 2022 increased 12.4% year over year on same store core revenues growth of 10.4% and same store core operating expenses growth of 6.2%. ytd 2022 same store noi increased 12.2% year over year on same store core revenues growth of 10.0% and same store core operating expenses growth of 5.3%. same store core revenues same store core revenues growth for q2 2022 of 10.4% year over year was primarily driven by a 9.4% increase in average monthly rent, a 100 basis points year over year improvement in bad debt as a percentage of gross rental revenue, and a 19.9% increase in other income, net of resident recoveries. ytd 2022 same store core revenue growth of 10.0% year over year was primarily driven by an 8.9% increase in average monthly rent, a 70 basis points year over year improvement in bad debt as a percentage of gross rental revenues, and a 31.6% increase in other income, net of resident recoveries. same store core operating expenses same store core operating expenses for q2 2022 increased 6.2% year over year, primarily driven by a 4.4% increase in same store fixed expenses and a 15.2% increase in repairs and maintenance expense, net of resident recoveries. ytd 2022 same store core operating expenses increased 5.3% year over year, primarily driven by a 4.2% increase in same store fixed expenses and a 16.9% increase in repairs and maintenance expense, net of resident recoveries. investment management activity acquisitions for q2 2022 totaled 955 homes for $426 million through diversified acquisition channels. this included 511 wholly owned homes for $227 million in addition to 444 homes for $199 million in the company's joint ventures. dispositions for q2 2022 included 176 wholly owned homes for gross proceeds of $70 million and seven homes for gross proceeds of $4 million in the company's joint ventures. year to date through june 30, 2022, the company acquired 1,777 homes for $766 million, including 1,029 wholly owned homes for $445 million and 748 homes for $321 million in the company's joint ventures. the company also sold 330 homes for $128 million, including 317 wholly owned homes for $122 million and 13 homes for $6 million in the company's joint ventures. balance sheet and capital markets activity as of june 30, 2022, the company had $1,848 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility and term loan. the company's total indebtedness as of june 30, 2022 was $7,826 million, consisting of $5,200 million of unsecured debt and $2,626 million of secured debt. net debt / ttm adjusted ebitdare was 5.9x at june 30, 2022, down from 6.2x as of december 31, 2021. as previously announced, the company entered into a new $725 million seven-year unsecured term loan on june 22, 2022. the sustainability-linked term loan bears interest at rates based on the company’s senior unsecured credit rating, which equated to an interest rate of adjusted term sofr plus 124 basis points at the time of closing based on the company’s current credit ratings. pricing of the term loan benefited from the company meeting certain esg performance targets as determined via an independent third-party evaluation, similar to its existing five-year unsecured credit facility. the new seven-year delayed draw term loan allowed the company to elect to receive a portion of the proceeds at closing, with the opportunity to receive the remaining proceeds in up to three additional draws over a six month period. the company received proceeds of $150 million in its initial draw at closing, and used these initial proceeds, along with cash on hand, as part of a series of transactions to fully repay its ih 2018-2 securitization. as previously announced, the company closed a public offering on april 5, 2022 of $600 million aggregate principal amount of 4.150% senior notes due in 2032. the notes were priced at 99.739% of the principal amount and will mature on april 15, 2032. net proceeds were used to voluntarily prepay secured indebtedness. dividend as previously announced on july 22, 2022, the company's board of directors declared a quarterly cash dividend of $0.22 per share of common stock. the dividend will be paid on or before august 26, 2022, to stockholders of record as of the close of business on august 9, 2022. fy 2022 guidance update fy 2022 guidance current previous fy 2022 fy 2022 guidance guidance core ffo per share — diluted $1.66 - $1.72 $1.62 - $1.70 affo per share — diluted $1.41 - $1.47 $1.38 - $1.46 same store core revenues growth 9.0% - 10.0% 8.0% - 9.0% same store core operating expenses growth 6.0% - 7.0% 5.5% - 6.5% same store noi growth 10.0% - 11.5% 9.0% - 10.5% note: 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. earnings conference call information invitation homes has scheduled a conference call at 11:00 a.m. eastern time on july 28, 2022, to discuss results for the second 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 842872. an audio webcast may be accessed at www.invh.com. a replay of the call will be available through august 25, 2022, and can be accessed by calling 1-866-813-9403 (domestic) or 1-929-458-6194 (international) and using the replay access code 769236, 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 herein 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 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, 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 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, 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 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) june 30, 2022 december 31, 2021 (unaudited) assets: investments in single-family residential properties, net $ 17,125,185 $ 16,935,322 cash and cash equivalents 272,708 610,166 restricted cash 206,888 208,692 goodwill 258,207 258,207 investments in unconsolidated joint ventures 244,730 130,395 other assets, net 399,266 395,064 total assets $ 18,506,984 $ 18,537,846 liabilities: mortgage loans, net $ 2,211,739 $ 3,055,853 secured term loan, net 401,421 401,313 unsecured notes, net 2,516,359 1,921,974 term loan facilities, net 2,624,412 2,478,122 revolving facility — — convertible senior notes, net — 141,397 accounts payable and accrued expenses 237,915 193,633 resident security deposits 171,413 165,167 other liabilities 61,736 341,583 total liabilities 8,224,995 8,699,042 equity: stockholders' equity preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of june 30, 2022 and december 31, 2021 — — common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 610,359,909 and 601,045,438 outstanding as of june 30, 2022 and december 31, 2021, respectively 6,104 6,010 additional paid-in capital 11,113,146 10,873,539 accumulated deficit (860,275 ) (794,869 ) accumulated other comprehensive loss (20,285 ) (286,938 ) total stockholders' equity 10,238,690 9,797,742 non-controlling interests 43,299 41,062 total equity 10,281,989 9,838,804 total liabilities and equity $ 18,506,984 $ 18,537,846 consolidated statements of operations ($ in thousands, except shares and per share amounts) q2 2022 q2 2021 ytd 2022 ytd 2021 (unaudited) (unaudited) (unaudited) revenues: rental revenues $ 505,936 $ 449,113 $ 989,931 $ 887,246 other property income 48,605 41,505 94,809 77,826 management fee revenues 2,759 1,015 4,870 1,786 total revenues 557,300 491,633 1,089,610 966,858 expenses: property operating and maintenance 190,680 175,422 372,949 343,795 property management expense 21,814 17,696 42,781 33,538 general and administrative 19,342 19,828 36,981 36,778 interest expense 74,840 80,764 149,229 164,170 depreciation and amortization 158,572 145,280 314,368 289,781 impairment and other 1,355 980 2,870 1,336 total expenses 466,603 439,970 919,178 869,398 gains (losses) on investments in equity securities, net (172 ) (7,002 ) (3,204 ) (10,142 ) other, net (3,827 ) (1,903 ) (3,233 ) (1,673 ) gain on sale of property, net of tax 27,508 17,919 45,534 32,403 income (loss) from investments in unconsolidated joint ventures (2,701 ) 11 (5,021 ) 362 net income 111,505 60,688 204,508 118,410 net income attributable to non-controlling interests (542 ) (350 ) (930 ) (705 ) net income attributable to common stockholders 110,963 60,338 203,578 117,705 net income available to participating securities (148 ) (96 ) (368 ) (191 ) net income available to common stockholders — basic and diluted $ 110,815 $ 60,242 $ 203,210 $ 117,514 weighted average common shares outstanding — basic 610,331,643 567,931,472 608,381,768 567,655,034 weighted average common shares outstanding — diluted 611,620,475 569,283,166 609,775,270 569,056,182 net income per common share — basic $ 0.18 $ 0.11 $ 0.33 $ 0.21 net income per common share — diluted $ 0.18 $ 0.11 $ 0.33 $ 0.21 dividends declared per common share $ 0.22 $ 0.17 $ 0.44 $ 0.34 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 (gains) 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 q2 2022 q2 2021 ytd 2022 ytd 2021 net income available to common stockholders $ 110,815 $ 60,242 $ 203,210 $ 117,514 net income available to participating securities 148 96 368 191 non-controlling interests 542 350 930 705 depreciation and amortization on real estate assets 156,433 143,607 310,073 286,391 impairment on depreciated real estate investments 36 93 137 524 net gain on sale of previously depreciated investments in real estate (27,508 ) (17,919 ) (45,534 ) (32,403 ) depreciation and net gain on sale of investments in unconsolidated joint ventures 916 142 1,416 (90 ) ffo $ 241,382 $ 186,611 $ 470,600 $ 372,832 core ffo reconciliation q2 2022 q2 2021 ytd 2022 ytd 2021 ffo $ 241,382 $ 186,611 $ 470,600 $ 372,832 non-cash interest expense, including the company's share from unconsolidated joint ventures 6,498 8,169 12,968 16,787 share-based compensation expense 7,989 9,206 14,635 15,020 severance expense 189 160 207 274 casualty (gains) losses, net 1,319 887 2,733 812 losses on investments in equity securities, net 172 7,002 3,204 10,142 core ffo $ 257,549 $ 212,035 $ 504,347 $ 415,867 affo reconciliation q2 2022 q2 2021 ytd 2022 ytd 2021 core ffo $ 257,549 $ 212,035 $ 504,347 $ 415,867 recurring capital expenditures, including the company's share from unconsolidated joint ventures (37,544 ) (28,714 ) (70,374 ) (53,189 ) adjusted ffo $ 220,005 $ 183,321 $ 433,973 $ 362,678 net income available to common stockholders weighted average common shares outstanding — diluted 611,620,475 569,283,166 609,775,270 569,056,182 net income per common share — diluted $ 0.18 $ 0.11 $ 0.33 $ 0.21 ffo numerator for ffo per common share — diluted $ 241,382 $ 190,955 $ 470,600 $ 381,520 weighted average common shares and op units outstanding — diluted 614,569,431 587,982,707 612,648,238 587,906,276 ffo per share — diluted $ 0.39 $ 0.32 $ 0.77 $ 0.65 core ffo and adjusted ffo weighted average common shares and op units outstanding — diluted 614,569,431 572,822,015 612,648,238 572,745,584 core ffo per share — diluted $ 0.42 $ 0.37 $ 0.82 $ 0.73 affo per share — diluted $ 0.36 $ 0.32 $ 0.71 $ 0.63 reconciliation of total revenues to same store core revenues, quarterly (in thousands) (unaudited) q2 2022 q1 2022 q4 2021 q3 2021 q2 2021 total revenues (total portfolio) $ 557,300 $ 532,310 $ 520,225 $ 509,532 $ 491,633 management fee revenues (2,759 ) (2,111 ) (1,753 ) (1,354 ) (1,015 ) total portfolio resident recoveries (29,394 ) (28,762 ) (26,967 ) (27,972 ) (26,076 ) total core revenues (total portfolio) 525,147 501,437 491,505 480,206 464,542 non-same store core revenues (41,868 ) (34,771 ) (31,647 ) (29,343 ) (26,974 ) same store core revenues $ 483,279 $ 466,666 $ 459,858 $ 450,863 $ 437,568 reconciliation of total revenues to same store total revenues and same store core revenues, ytd (in thousands) (unaudited) ytd 2022 ytd 2021 total revenues (total portfolio) $ 1,089,610 $ 966,858 management fee revenues (4,870 ) (1,786 ) total portfolio resident recoveries (58,156 ) (50,816 ) total core revenues (total portfolio) 1,026,584 914,256 non-same store core revenues (76,639 ) (50,575 ) same store core revenues $ 949,945 $ 863,681 reconciliation of property operating and maintenance expenses to same store core operating expenses, quarterly (in thousands) (unaudited) q2 2022 q1 2022 q4 2021 q3 2021 q2 2021 property operating and maintenance expenses (total portfolio) $ 190,680 $ 182,269 $ 177,883 $ 184,484 $ 175,422 total portfolio resident recoveries (29,394 ) (28,762 ) (26,967 ) (27,972 ) (26,076 ) core operating expenses (total portfolio) 161,286 153,507 150,916 156,512 149,346 non-same store core operating expenses (12,425 ) (12,029 ) (10,411 ) (9,258 ) (9,232 ) same store core operating expenses $ 148,861 $ 141,478 $ 140,505 $ 147,254 $ 140,114 reconciliation of property operating and maintenance to same store operating expenses and same store core operating expenses, ytd (in thousands) (unaudited) ytd 2022 ytd 2021 property operating and maintenance expenses (total portfolio) $ 372,949 $ 343,795 total portfolio resident recoveries (58,156 ) (50,816 ) core operating expenses (total portfolio) 314,793 292,979 non-same store core operating expenses (24,454 ) (17,337 ) same store core operating expenses $ 290,339 $ 275,642 reconciliation of net income to same store noi, quarterly (in thousands) (unaudited) q2 2022 q1 2022 q4 2021 q3 2021 q2 2021 net income available to common stockholders $ 110,815 $ 92,395 $ 74,476 $ 69,108 $ 60,242 net income available to participating securities 148 220 67 69 96 non-controlling interests 542 388 328 318 350 interest expense 74,840 74,389 79,121 79,370 80,764 depreciation and amortization 158,572 155,796 151,660 150,694 145,280 property management expense 21,814 20,967 20,173 17,886 17,696 general and administrative 19,342 17,639 19,668 19,369 19,828 impairment and other 1,355 1,515 3,046 4,294 980 gain on sale of property, net of tax (27,508 ) (18,026 ) (14,558 ) (13,047 ) (17,919 ) losses on investments in equity securities, net 172 3,032 3,597 0 (4,319 ) 0 7,002 other, net 3,827 (594 ) 2,654 1,508 1,903 management fee revenues (2,759 ) (2,111 ) (1,753 ) (1,354 ) (1,015 ) (income) loss from investments in unconsolidated joint ventures 2,701 2,320 2,110 (202 ) (11 ) noi (total portfolio) 363,861 347,930 340,589 323,694 315,196 non-same store noi (29,443 ) (22,742 ) (21,236 ) (20,085 ) (17,742 ) same store noi $ 334,418 $ 325,188 $ 319,353 $ 303,609 $ 297,454 reconciliation of net income to noi and same store noi, ytd (in thousands) (unaudited) ytd 2022 ytd 2021 net income available to common stockholders $ 203,210 $ 117,514 net income available to participating securities 368 191 non-controlling interests 930 705 interest expense 149,229 164,170 depreciation and amortization 314,368 289,781 property management expense 42,781 33,538 general and administrative 36,981 36,778 impairment and other 2,870 1,336 gain on sale of property, net of tax (45,534 ) (32,403 ) losses on investments in equity securities, net 3,204 10,142 other, net 3,233 1,673 management fee revenues (4,870 ) (1,786 ) (income) loss from investments in unconsolidated joint ventures 5,021 (362 ) noi (total portfolio) 711,791 621,277 non-same store noi (52,185 ) (33,238 ) same store noi $ 659,606 $ 588,039 reconciliation of net income to ebitda, ebitdare, and adjusted ebitdare (in thousands, unaudited) q2 2022 q2 2021 ytd 2022 ytd 2021 net income available to common stockholders $ 110,815 $ 60,242 $ 203,210 $ 117,514 net income available to participating securities 148 96 368 191 non-controlling interests 542 350 930 705 interest expense 74,840 80,764 149,229 164,170 interest expense in unconsolidated joint ventures 859 225 1,451 299 depreciation and amortization 158,572 145,280 314,368 289,781 depreciation and amortization of real estate assets in unconsolidated joint ventures 1,114 246 1,752 350 ebitda 346,890 287,203 671,308 573,010 gain on sale of property, net of tax (27,508 ) (17,919 ) (45,534 ) (32,403 ) impairment on depreciated real estate investments 36 93 137 524 net gain on sale of investments in unconsolidated joint ventures (186 ) (104 ) (316 ) (440 ) ebitdare 319,232 269,273 625,595 540,691 share-based compensation expense 7,989 9,206 14,635 15,020 severance 189 160 207 274 casualty (gains) losses, net 1,319 887 2,733 812 (gains) losses on investments in equity securities, net 172 7,002 3,204 10,142 other, net 3,827 1,903 3,233 1,673 adjusted ebitdare $ 332,728 $ 288,431 $ 649,607 $ 568,612 trailing twelve months (ttm) ended june 30, 2022 december 31, 2021 net income available to common stockholders $ 346,794 $ 261,098 net income available to participating securities 504 327 non-controlling interests 1,576 1,351 interest expense 307,720 322,661 interest expense in unconsolidated joint ventures 2,361 1,209 depreciation and amortization 616,722 592,135 depreciation and amortization of real estate assets in unconsolidated joint ventures 2,706 1,304 ebitda 1,278,383 1,180,085 gain on sale of property, net of tax (73,139 ) (60,008 ) impairment on depreciated real estate investments 263 650 net gain on sale of investments in unconsolidated joint ventures (926 ) (1,050 ) ebitdare 1,204,581 1,119,677 share-based compensation expense 26,785 27,170 severance 990 1,057 casualty (gains) losses, net 9,947 8,026 (gains) losses on investments in equity securities, net 2,482 9,420 other, net 7,395 5,835 adjusted ebitdare $ 1,252,180 $ 1,171,185 reconciliation of net debt / trailing twelve months (ttm) adjusted ebitdare (in thousands, except for ratio) (unaudited) as of as of june 30, 2022 december 31, 2021 mortgage loans, net $ 2,211,739 $ 3,055,853 secured term loan, net 401,421 401,313 unsecured notes, net 2,516,359 1,921,974 term loan facility, net 2,624,412 2,478,122 revolving facility — — convertible senior notes, net — 141,397 total debt per balance sheet 7,753,931 7,998,659 retained and repurchased certificates (116,940 ) (159,110 ) cash, ex-security deposits and letters of credit (1) (306,049 ) (649,722 ) deferred financing costs, net 57,448 50,146 unamortized discounts on note payable 14,316 13,605 net debt (a) $ 7,402,706 $ 7,253,578 for the trailing twelve for the trailing twelve months (ttm) ended months (ttm) ended june 30, 2022 december 31, 2021 adjusted ebitdare (b) $ 1,252,180 $ 1,171,185 net debt / ttm adjusted ebitdare (a / b) 5.9x 6.2x (1) represents cash and cash equivalents and the portion of restricted cash that excludes security deposits and letters of credit
