Document and Entity Information
Document and Entity Information Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Invitation Homes Inc. | |
Entity Central Index Key | 1,687,229 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 310,376,634 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments in single-family residential properties: | ||
Land | $ 2,701,437 | $ 2,703,388 |
Building and improvements | 7,078,678 | 7,091,457 |
Investments in single-family residential properties, net | 9,780,115 | 9,794,845 |
Less: accumulated depreciation | (853,399) | (792,330) |
Investments in single-family residential properties, net | 8,926,716 | 9,002,515 |
Cash and cash equivalents | 192,450 | 198,119 |
Restricted cash | 144,169 | 222,092 |
Other assets, net | 324,826 | 309,625 |
Total assets | 9,588,161 | 9,732,351 |
Liabilities: | ||
Mortgage loans, net | 4,228,525 | 5,254,738 |
Term loan facility, net | 1,485,866 | 0 |
Credit facilities, net | 0 | 2,315,541 |
Accounts payable and accrued expenses | 101,347 | 88,052 |
Resident security deposits | 87,792 | 86,513 |
Other liabilities | 26,589 | 30,084 |
Total liabilities | 5,930,119 | 7,774,928 |
Equity: | ||
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding at March 31, 2017 | 0 | |
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 310,376,634 outstanding at March 31, 2017 | 3,104 | |
Additional paid-in capital | 3,667,178 | |
Accumulated deficit | (25,512) | |
Accumulated other comprehensive income | 13,272 | |
Additional paid-in capital | 3,658,042 | 1,957,423 |
Total shareholders' equity | $ 9,588,161 | $ 9,732,351 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS Parenthetical | Mar. 31, 2017$ / sharesshares |
Statement of Financial Position [Abstract] | |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred shares, shares authorized (in shares) | 900,000,000 |
Preferred shares, shares outstanding (in shares) | 0 |
Common stock shares, par value (in dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized (in shares) | 9,000,000,000 |
Common stock, shares outstanding (in shares) | 310,376,634 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Rental revenues | $ 226,096 | $ 214,323 |
Other property income | 12,654 | 10,179 |
Total revenues | 238,750 | 224,502 |
Operating expenses: | ||
Property operating and maintenance | 88,168 | 84,967 |
Property management expense | 11,449 | 7,393 |
General and administrative | 58,266 | 15,360 |
Depreciation and amortization | 67,577 | 65,702 |
Impairment and other | 1,204 | (183) |
Total operating expenses | 226,664 | 173,239 |
Operating income | 12,086 | 51,263 |
Other income (expenses): | ||
Interest expense | (68,572) | (70,277) |
Other, net | (226) | (153) |
Total other income (expenses) | (68,798) | (70,430) |
Loss from continuing operations | (56,712) | (19,167) |
Gain on sale of property, net of tax | 14,321 | 9,192 |
Net loss | $ (42,391) | $ (9,975) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (42,391) | $ (9,975) |
Other comprehensive income: | ||
Unrealized gains on interest rate swaps | 10,561 | 0 |
Losses from interest rate swaps reclassified into earnings from accumulated other comprehensive income | 2,711 | 0 |
Other comprehensive income | 13,272 | 0 |
Comprehensive loss | $ (29,119) | $ (9,975) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | AOCI Attributable to Parent |
Beginning Balance at Dec. 31, 2016 | $ 1,957,423 | $ 0 | $ 0 | $ 0 | $ 0 |
Beginning Balance, common stock, shares outstanding (in shares) at Dec. 31, 2016 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (16,879) | ||||
Redemption of Series A Preferred Stock | (1,153) | ||||
Distribution of Class B notes receivable | (19,686) | ||||
Cancelation/distribution of Class B notes receivable | 19,686 | ||||
Share-based compensation expense | 12,001 | ||||
Accrued interest on Class B notes | 15 | ||||
Ending Balance, common stock, shares outstanding (in shares) at Jan. 31, 2017 | 0 | ||||
Ending Balance at Jan. 31, 2017 | 1,951,407 | $ 0 | 0 | 0 | 0 |
Beginning Balance at Dec. 31, 2016 | 1,957,423 | $ 0 | 0 | 0 | 0 |
Beginning Balance, common stock, shares outstanding (in shares) at Dec. 31, 2016 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (42,391) | ||||
Total other comprehensive income | $ 13,272 | ||||
Ending Balance, common stock, shares outstanding (in shares) at Mar. 31, 2017 | 310,376,634 | 310,376,634 | |||
Ending Balance at Mar. 31, 2017 | $ 3,658,042 | $ 3,104 | 3,667,178 | (25,512) | 13,272 |
Beginning Balance at Jan. 31, 2017 | 1,951,407 | $ 0 | 0 | 0 | 0 |
Beginning Balance, common stock, shares outstanding (in shares) at Jan. 31, 2017 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Pre-IPO Transactions (see Note 1) | (1,951,407) | $ 2,218 | 1,949,189 | ||
Pre-IPO Transactions (see Note 1) (in shares) | 221,826,634 | ||||
Issuance of Common Stock — IPO (in shares) | 88,550,000 | ||||
Issuance of Common Stock — IPO | 1,692,058 | $ 886 | 1,691,172 | ||
Offering costs | (5,426) | (5,426) | |||
Net loss | (25,512) | (25,512) | |||
Share-based compensation expense | 32,243 | 32,243 | |||
Total other comprehensive income | $ 13,272 | 13,272 | |||
Ending Balance, common stock, shares outstanding (in shares) at Mar. 31, 2017 | 310,376,634 | 310,376,634 | |||
Ending Balance at Mar. 31, 2017 | $ 3,658,042 | $ 3,104 | $ 3,667,178 | $ (25,512) | $ 13,272 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net loss | $ (42,391) | $ (9,975) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 67,577 | 65,702 |
Share-based compensation expense | 44,244 | 4,206 |
Amortization of deferred leasing costs | 3,139 | 3,729 |
Amortization of deferred financing costs | 11,327 | 12,776 |
Amortization of discount on mortgage loans | 55 | 1,418 |
Provisions for impairment | 1,037 | 0 |
Gain on sale of property, net of tax | (14,321) | (9,192) |
Paid in kind interest on warehouse loan | 0 | 694 |
Change in fair value of derivative instruments | 3,752 | 0 |
Other noncash amounts included in net loss | (337) | (673) |
Other noncash amounts included in net loss | ||
Restricted cash related to security deposits | (5,213) | (2,883) |
Other assets, net | (15,906) | (5,992) |
Accounts payable and accrued expenses | 16,207 | 13,493 |
Resident security deposits | 1,279 | 2,686 |
Other liabilities | 412 | 1,342 |
Net cash provided by operating activities | 70,861 | 77,331 |
Investing Activities: | ||
Changes in amounts deposited and held by others | 484 | 709 |
Acquisition of residential properties | (27,813) | (112,733) |
Initial renovations to single-family residential properties | (6,855) | (19,952) |
Other capital expenditures for single-family residential properties | (10,800) | (10,056) |
Corporate capital expenditures | (270) | (617) |
Proceeds from sale of residential properties | 73,652 | 72,701 |
Changes in restricted cash | 83,136 | (10,202) |
Net cash provided by (used in) investing activities | 111,534 | (80,150) |
Financing Activities: | ||
Contributions | 0 | 128,002 |
Redemption of Series A Preferred Stock | (1,153) | 0 |
Proceeds from initial offering, net of underwriting discounts | 1,692,058 | 0 |
Offering costs paid | (2,457) | 0 |
Proceeds from credit facilities | 0 | 11,276 |
Payments on credit facilities | (2,321,585) | (43,268) |
Payments on mortgage loans | (1,030,471) | (29,598) |
Proceeds from term loan facility | 1,500,000 | 0 |
Payments on warehouse loans | 0 | (68,767) |
Deferred financing costs paid | 24,456 | 164 |
Net cash used in financing activities | (188,064) | (2,519) |
Change in cash and cash equivalents | (5,669) | (5,338) |
Cash and cash equivalents, beginning of period | 198,119 | 274,818 |
Cash and cash equivalents, end of period | 192,450 | 269,480 |
Supplemental cash flow disclosures: | ||
Interest paid, net of amounts capitalized | 53,645 | 57,396 |
Noncash investing and financing activities: | ||
Accrued renovation improvements at period end | 3,620 | 9,031 |
Accrued residential property capital improvements at period end | 2,277 | 3,346 |
Transfer of residential property, net to other asset, net for held for sale assets | 32,862 | 4,971 |
Reclassification of offering costs from other assets to additional paid in capital | 2,969 | 0 |
Change in other comprehensive income from cash flow hedges | $ 13,272 | $ 0 |
Organization and Formation
Organization and Formation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Formation | Note 1—Organization and Formation Invitation Homes Inc. (“INVH”) was formed for the purpose of owning, renovating, leasing, and operating single-family residential properties. On February 6, 2017, INVH completed an initial public offering (“IPO”) of 88,550,000 shares of common stock at a price to the public of $20.00 per share. An additional 221,826,634 shares of common stock were issued to the Pre-IPO Owners (as defined below). Prior to the IPO, we conducted our business through a combination of entities formed by Blackstone Real Estate Partners VII L.P. (“BREP VII”), an investment fund sponsored by The Blackstone Group L.P., along with BREP VII’s affiliated side-by-side funds and co-investment vehicles (“BREP VII and Affiliates”). The first Invitation Homes partnership was formed on June 12, 2012, through the establishment of Invitation Homes L.P. (“IH1”) and its wholly-owned subsidiary, THR Property Management L.P. (the “Manager”). Preeminent Holdings, Inc. (“IH2”) was created on February 14, 2013, Invitation Homes 3 L.P. (“IH3”) on August 8, 2013, Invitation Homes 4 L.P. (“IH4”) on January 10, 2014, Invitation Homes 5 L.P. (“IH5”) on August 22, 2014, and Invitation Homes 6 L.P. (“IH6”) on June 15, 2015 (collectively with IH1, the “Invitation Homes Partnerships”). Through the Manager, we provide all management and other administrative services with respect to the properties we own. The collective owners of the Invitation Homes Partnerships are referred to as the “Pre-IPO Owners.” Invitation Homes Operating Partnership LP (the “Operating Partnership”) and its general partner, Invitation Homes OP GP LLC (the “OP General Partner”), were formed by one of our Pre-IPO Owners on December 14, 2016. The Operating Partnership began negotiating and entering into certain debt and hedge instruments upon its inception in anticipation of our IPO. Prior to the IPO, the Invitation Homes Partnerships and the Operating Partnership were under the common control of BREP VII and Affiliates. BREP VII and Affiliates had the ability to control each of the Invitation Homes Partnerships and manage and operate the Invitation Homes Partnerships through the Manager and a common board of directors. As such prior to the IPO, our historical financial statements include assets, liabilities and results of operations of the Operating Partnership and the Invitation Homes Partnerships and their consolidated subsidiaries on a combined and consolidated basis. As a result of the Pre-IPO Transactions described below, IH2 was effectively merged into INVH (and the assets and liabilities of IH2 were contributed to the Operating Partnership), and the remaining Invitation Homes Partnerships became wholly owned subsidiaries of INVH through the Operating Partnership. On October 4, 2016, INVH was incorporated in the State of Delaware and was capitalized as of that date by an investment from one of our Pre-IPO Owners. Since inception, and through the date of the Pre-IPO Transactions (as described below), Invitation Homes Inc. did not engage in any business or activity. On February 6, 2017, Invitation Homes Inc. changed its jurisdiction of incorporation to Maryland. The Pre-IPO Transactions also included amendments to the Invitation Homes Inc. charter which provide for the issuance of up to 9,000,000,000 shares of common stock and 900,000,000 shares of preferred stock, $0.01 par value per share. Our organizational structure includes several wholly owned subsidiaries that were formed to facilitate our financing arrangements (the “Borrower Entities”). These Borrower Entities are used to align the ownership of our single-family residential properties with individual debt instruments. Collateral for the individual debt instruments is in the form of equity interests in the Borrower Entities or in pools of single-family residential properties owned either directly by the Borrower Entities or indirectly by their wholly owned subsidiaries (see Note 6). References to “INVH,” “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer, collectively, to INVH, IH1, IH2, IH3, IH4, IH5, IH6, the Manager, and the Operating Partnership. Pre-IPO Transactions On January 31, 2017, we effected certain transactions (the “Pre-IPO Transactions”) that resulted in the Operating Partnership holding, directly or indirectly, all of the assets, liabilities, and results of operations of the Invitation Homes Partnerships, including the full portfolio of homes held by the Invitation Homes Partnerships. As a result of the Pre-IPO Transactions, the Operating Partnership is wholly owned by Invitation Homes Inc. directly and through its wholly owned subsidiary, the OP General Partner. More specifically: • Invitation Homes Inc. acquired all of the assets, liabilities, and operations held directly or indirectly by IH2 through certain mergers and related transactions as follows: • IH2 Property Holdings Inc., a parent entity of IH2, merged with and into Invitation Homes Inc., with Invitation Homes Inc. as the entity surviving the merger (the “IH2 Property Holdings Merger”), and the issued and outstanding shares of IH2 Property Holdings Inc., all of which were held by certain of the Pre-IPO Owners, were converted into newly issued shares of common stock of Invitation Homes Inc.; and • following the IH2 Property Holdings Merger, IH2 merged with and into Invitation Homes Inc., with Invitation Homes Inc. as the entity surviving the merger (the “IH2 Merger”). In the IH2 Merger, all of the shares of common stock of IH2 issued and outstanding immediately prior to such merger, other than the shares held by Invitation Homes Inc., were converted into shares of newly issued common stock of Invitation Homes Inc. As a result of the IH2 Merger, Invitation Homes Inc. holds all of the assets and operations held directly or indirectly by IH2 prior to such merger; • prior to the IH2 Merger, our Pre-IPO Owners contributed to Invitation Homes Inc. their interests in each of the other Invitation Homes Partnerships (other than IH2) in exchange for newly-issued shares of Invitation Homes Inc.; and • Invitation Homes Inc. contributed to the Operating Partnership all of the interests in the Invitation Homes Partnerships (other than IH2, the assets, liabilities and operations of which were contributed to the Operating Partnership). The Pre-IPO Transactions were accounted for as a reorganization of entities under common control utilizing historical cost basis. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2—Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our audited combined and consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Subsequent to the date of the Pre-IPO Transactions, these condensed consolidated financial statements include the accounts of Invitation Homes Inc. and its wholly owned subsidiaries. Prior to the date of the Pre-IPO Transactions, these combined and consolidated financial statements include the combined accounts of the Operating Partnership and the Invitation Homes Partnerships and their wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in these condensed consolidated financial statements. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. We consolidate entities when we own, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. We consolidate variable interest entities (“VIEs”) in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation , as amended by Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810)—Amendments to the Consolidation Analysis (“ASU 2015-02”), if we are the primary beneficiary of the VIE as determined by our power to direct the VIE’s activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. Adoption of New Accounting Standards In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted only for transactions that occurred before the issuance date of the guidance and has not been previously reported in issued financial statements. Effective January 1, 2017, we adopted ASU 2017-01, and the adoption of this standard had no impact on our condensed consolidated financial statements for any period presented. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Effective January 1, 2017, we adopted ASU 2016-09, and the adoption of this standard had no impact on our condensed consolidated financial statements for any period presented. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates. Accounting Policies There have been no changes to our significant accounting policies that have had a material impact on our condensed consolidated financial statements and related notes, compared to those policies disclosed in our audited combined and consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 other than as disclosed below. Investments in Single-Family Residential Properties Upon acquisition, we evaluate our acquired single-family residential properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Upon adoption of ASU 2017-01, our purchases of homes are treated as acquisitions and are recorded at their purchase price which is allocated between land, building and improvements, and in-place lease intangibles (when a tenant is in place at the acquisition date) based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, bidding service and title fees, payments made to cure tax, utility, homeowners’ association (“HOA”), and other mechanic’s and miscellaneous liens, as well as other closing costs. The fair values of acquired in-place lease intangibles, if any, are based on the costs to execute similar leases, including commissions and other related costs. The origination value of in-place lease intangibles also includes an estimate of lost rent revenue at in-place rental rates during the estimated time required to lease the property. The in-place lease intangibles are amortized over the life of the leases and are recorded in other assets, net in our condensed consolidated balance sheets. Prior to our adoption of ASU 2017-01 effective January 1, 2017, acquisition costs for transactions accounted for as business combinations were expensed in the period in which they were incurred and were reflected in other expenses in the accompanying condensed consolidated statements of operations. Earnings per Share We use the two-class method to compute basic and diluted earnings (loss) per common share (“EPS”) because our restricted stock units and restricted stock awards (see Share-Based Compensation Expense below) are participating securities as defined by GAAP. We compute basic EPS by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding for the period, adjusted to exclude nonvested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of nonvested RSUs and RSAs except when doing so would be anti-dilutive. Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure upon which to compute historical EPS. Accordingly, EPS has not been presented for historical periods prior to the IPO. Derivatives We enter into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes. We do not enter into Hedging Derivatives for trading or other speculative purposes, and all of our Hedging Derivatives are carried at fair value on our condensed consolidated balance sheets. Designated hedges are derivatives that meet the criteria for hedge accounting and that we have elected to designate as hedges. Non-designated hedges are derivatives that do not meet the criteria for hedge accounting or that we have not elected to designate as hedges. Pursuant to the terms of certain of our mortgage loans, we are required to maintain interest rate caps. We have elected not to designate these interest cap agreements for hedge accounting (collectively, the “Non-Designated Hedges”). We enter into interest rate swap agreements to hedge the risk arising from changes in our interest payments on variable-rate debt due to changes in the one-month London Interbank Offered Rate (“LIBOR”). In connection with the Pre-IPO Transactions, as of January 31, 2017, we have elected to account for our interest rate swap agreements as effective cash flow hedges (collectively, the “Designated Hedges”). We assess the effectiveness of these interest rate swap cash flow hedging relationships on an ongoing basis. The effect of these interest rate cap agreements and interest rate swap agreements is to reduce the variability of interest payments due to changes in LIBOR. The fair value of Hedging Derivatives that are in an asset position are included in other assets and those in a liability position are included in other liabilities on our condensed consolidated balance sheets. For Non-Designated Hedges, the related changes in fair value are reflected within interest expense in the condensed consolidated statements of operations. For Designated Hedges, the effective portion of the related changes in fair value is reported as a component of other comprehensive income (loss) on our condensed consolidated balance sheets and reclassified into earnings as interest expense in our condensed consolidated statements of operations when the hedged transactions affect earnings; the ineffective portion of the changes in fair value is reflected directly within interest expense in the condensed consolidated statements of operations. See Note 7 for further discussion of derivative financial instruments. Share-Based Compensation Expense Prior to the IPO, we recognized share-based compensation expense for incentive compensation units granted by the Invitation Homes Partnerships (the “Class B Units”). In connection with and subsequent to the IPO, we have issued restricted stock units (“RSUs”) that settle in shares of common stock and restricted shares of common stock (“RSAs”) for which share-based compensation expense is recognized. We recognized share-based compensation expense for the Class B Units based on the estimated fair value of the Class B Units and vesting conditions of the related incentive unit agreements. Since the Class B Units granted by IH1 were granted to employees of the Manager, a wholly owned subsidiary of IH1, the related share-based compensation expense was based on the grant-date fair value of the units and recognized in expense over the service period. Because units in IH2, IH3, IH4, IH5, and IH6 were granted to non-employees of those respective partnerships, fair value was re-measured for nonvested units at the end of each reporting period. The fair value of the Class B Units was determined based on a valuation model that took into account discounted cash flows and a market approach based on comparable companies and transactions. We recognize share-based compensation expense for the RSUs and RSAs based on their grant-date fair value, net of expected forfeitures, over the service period from the grant date to vest date for each tranche or when any applicable performance conditions are met in accordance with the related RSU and RSA agreements. The grant-date fair value of RSUs and RSAs is generally based on the closing price of our common stock on the grant date. Additional compensation expense is recognized if modifications to existing incentive compensation unit, RSU, or RSA agreements result in an increase in the post-modification fair value of the units that exceeds their pre-modification fair value. Share-based compensation expense is presented as a component of general and administrative expense and property management expense in our condensed consolidated statements of operations. See Note 10 for further discussion of share-based compensation expense. Income Taxes As a result of the Pre-IPO Transactions more fully described in Note 1, the Invitation Homes Partnerships transferred all assets, liabilities, and operations to Invitation Homes Inc. through certain mergers and related transactions, including the IH2 Property Holdings Merger. IH2 Property Holdings Inc. had previously elected to qualify as a Real Estate Investment Trust “REIT” for United States federal income tax purposes commencing with its taxable year ended December 31, 2013. Effective upon consummation of the IH2 Property Holdings Merger, Invitation Homes Inc. became subject to such REIT election. We intend to continue to operate as a REIT, and our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Internal Revenue Code of 1986, as amended (the “Code”), which are related to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If we qualify for taxation as a REIT, we will generally not be subject to United States federal corporate income tax on our taxable income that is currently distributed to stockholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. If we fail to qualify as a REIT in any taxable year, we will be subject to federal taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for subsequent taxable years. Even if we qualify as a REIT, we may be subject to United States federal income and excise taxes in various situations, such as on our undistributed income. We also will be required to pay a 100% tax on any net income on non-arm’s length transactions between us and a TRS, defined below, and on any net income from sales of assets that were held for sale to customers in the ordinary course. In addition, we could also be subject to the alternative minimum tax on items of tax preference. State and local tax laws may not conform to the United States federal income tax treatment, and we may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business. Any taxes imposed on us reduce our operating cash flow and net income. As part of the formation of Invitation Homes Inc., each of the Invitation Homes Partnerships (other than IH2) transferred assets into Invitation Homes Inc. solely in exchange for shares of common stock. Certain of the assets contributed contained built-in gains. Prior to the Pre-IPO Transactions, the contributing partnerships had indirect C corporation partners to which a portion of the built-in gain would be allocated. As a result, if we dispose of any such assets during the five-year period following the date the REIT acquired such assets, we will be subject to the regulations under Section 337(d) of the Code. In general terms, such regulations subject the REIT to the maximum corporate level tax rate on the lesser of (i) such built-in gains and (ii) the gain recognized by the REIT upon a taxable disposition of the contributed assets. We may, however, choose not to sell such assets during such five-year period or to sell them in a non-taxable transaction. As such, the potential taxes associated with these built-in gains are not estimable. Certain of our operations or a portion thereof, are conducted through taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a subsidiary C-corporation that has not elected REIT status and as such is subject to United States federal and state corporate income tax. We use TRS entities to facilitate our ability to perform non-real estate related activities and/or perform non-customary services for residents that cannot be offered directly by a REIT. For our TRS entities, deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for United States federal income tax purposes and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. We reduce deferred tax assets by recording a valuation allowance when we determine, based on available evidence, that it is more likely than not that the assets will not be realized. We recognize the tax consequences associated with intercompany transfers between the REIT and TRS entities when the related assets affect our GAAP net income or loss, generally through depreciation, impairment losses, or sales to third-party entities. Tax benefits associated with uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. We file income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. Our filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years varying based upon the date of incorporation of the specific entity. The years open to examination range from 2013 to present. Recent Accounting Pronouncements In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that period changes in the total of cash, cash equivalents, and amounts generally described as restricted cash or cash equivalents are explained in the statement of cash flow. Thus, amounts generally described as restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning and ending balances shown in the statement of cash flows. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which clarifies the classification of certain cash receipts and cash payments including debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims, and beneficial interests in securitization transactions. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which will require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than one year. Lessor accounting will remain similar to lessor accounting under current GAAP, while aligning with the FASB’s new revenue recognition guidance. The new standard will be effective for us for annual reporting periods beginning after December 15, 2018, and for interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides guidance on revenue recognition and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , most industry-specific guidance and some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts . The standard’s core principle is that a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These judgments may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. At that time, we may adopt the full retrospective approach or the modified retrospective approach. Early adoption is permitted only as of annual reporting periods, and interim periods therein, beginning after December 15, 2016. We are currently evaluating the method of adoption of this guidance, as well as the impact of the guidance on our condensed consolidated financial statements. |
Investments in Single-Family Re
Investments in Single-Family Residential Properties | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Investments in Single-Family Residential Properties | Note 3—Investments in Single-Family Residential Properties The following table sets forth the net carrying amount associated with our properties by component: March 31, December 31, Land $ 2,701,437 $ 2,703,388 Single-family residential property 6,818,318 6,829,579 Capital improvements 228,643 229,890 Equipment 31,717 31,988 Total gross investments in the properties 9,780,115 9,794,845 Less: accumulated depreciation (853,399 ) (792,330 ) Investments in single-family residential properties, net $ 8,926,716 $ 9,002,515 As of March 31, 2017 and December 31, 2016 , the carrying amount of the residential property above included $121,727 and $122,009 , respectively, of capitalized acquisition costs (excluding purchase price), along with $61,989 and $62,169 , respectively, of capitalized interest, $25,957 and $26,050 , respectively, of capitalized property taxes, $4,739 and $4,764 , respectively, of capitalized insurance, and $2,884 and $2,890 , respectively, of capitalized HOA fees. During the three months ended March 31, 2017 and 2016 , we recognized $66,653 and $64,409 , respectively, of depreciation expense related to the components of the properties, and $924 and $1,293 , respectively, of depreciation and amortization related to corporate furniture and equipment. These amounts are included in depreciation and amortization on the condensed consolidated statements of operations. Further, during the years ended March 31, 2017 and 2016 , impairments totaling $1,037 and $0 , respectively, have been recognized and are included in impairment and other on the condensed consolidated statements of operations. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Note 4—Restricted Cash Pursuant to the terms of the credit facility agreements and the mortgage loans described in Note 6 , we are required to establish, maintain, and fund from time to time (generally either monthly or at the time borrowings are funded) certain specified reserve accounts. These reserve accounts include, but are not limited to, the following types of accounts: (i) completion reserves; (ii) renovation reserves; (iii) leasing commission reserves; (iv) debt service reserves; (v) property tax reserves; (vi) insurance premium and deductible reserves; (vii) standing reserves; (viii) special reserves; (ix) termination fee reserves; (x) eligibility reserves; (xi) collections; and (xii) non-conforming property reserves. In February 2017, the credit facilities were repaid in full and all related reserve accounts were released. Prior to that time, the credit facility reserve accounts were under the sole control of the Administrative Agent, as defined in the credit facility agreements. The reserve accounts associated with the mortgage loans are under the sole control of the loan servicer. Additionally, we hold security deposits pursuant to resident lease agreements that are required to be segregated. Accordingly, amounts funded to these reserve accounts and security deposit accounts have been classified within our condensed consolidated balance sheets as restricted cash. We also hold letters of credit as required by certain of our insurance policies. The amounts funded, and to be funded, to the reserve accounts are subject to formulae included in the credit facility agreements and mortgage loan agreements and are to be released to us subject to certain conditions specified therein being met. To the extent that an event of default were to occur, the loan servicer (as it relates to the Securitizations) has discretion to use such funds to either settle the applicable operating expenses to which such reserves relate or reduce the allocated loan amount associated with a residential property of ours. As of March 31, 2017 and December 31, 2016 , the balances in our restricted cash accounts are as set forth in the table below. At December 31, 2016 , no amounts were funded to the completion, renovation, leasing commission, debt service, termination fee, and nonconforming property reserve accounts as the conditions specified in the credit facility agreements that require such funding did not exist, and none are required at March 31, 2017 as the credit facilities had been repaid in full. March 31, December 31, Resident security deposits $ 91,452 $ 86,239 Collections 18,134 42,767 Property taxes 24,995 52,256 Insurance premium and deductible — 4,432 Standing and capital expenditure reserves 6,115 24,409 Special reserves — 34 Eligibility reserves 254 9,274 Letters of credit 3,219 2,681 Total $ 144,169 $ 222,092 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 5—Other Assets At March 31, 2017 and December 31, 2016 , the balances in other assets, net are as follows: March 31, December 31, Investments in debt securities, net $ 209,386 $ 209,337 Held for sale assets (1) 37,142 45,062 Prepaid expenses 33,811 21,883 Deferred leasing costs, net 7,415 7,710 Rent and other receivables, net 11,781 11,604 Deferred financing costs, net 9,242 — Interest rate swap hedges (see Note 7) 5,907 — Corporate fixed assets, net 5,612 6,247 Other 4,530 7,782 Total $ 324,826 $ 309,625 (1) As of March 31, 2017 and December 31, 2016 (unaudited), 358 and 391 properties, respectively, were classified as held for sale (see Note 15 ). Investments in Debt Securities In connection with certain of the Securitizations, as defined in Note 6 , we previously acquired $193,045 of Class G certificates. In 2016, we purchased $16,423 of Class F certificates, which had an unamortized discount of $82 and $131 as of March 31, 2017 and December 31, 2016 , respectively. These investments in debt securities are classified as held to maturity investments (for additional information about the Securitizations, see Note 6 ). As of March 31, 2017 and December 31, 2016 , there were no gross unrecognized holding gains or losses and there were no other than temporary impairments recognized in accumulated other comprehensive income. As of March 31, 2017 , the Class F and G certificates are scheduled to mature over the next 3 to 12 months. Held for Sale Assets Included in held for sale assets are 219 homes with a net carrying amount of $18,520 as of March 31, 2017 that are under contract for a bulk sale pursuant to a purchase and sale agreement dated March 29, 2017 for an aggregate sales price of $21,778 , subject to customary terms and conditions. Rent and Other Receivables We lease our properties to residents pursuant to leases that generally have an initial contractual term of at least 12 months, provide for monthly payments, and are cancelable by the resident and us under certain conditions specified in the related lease agreements. Included in other assets, net within the condensed consolidated balance sheets, is an allowance for doubtful accounts of $1,198 and $1,183 , as of March 31, 2017 and December 31, 2016 , respectively. Deferred Financing Costs, net In connection with our Revolving Facility (as defined in Note 6 ), we incurred $9,634 of financing costs during the three months ended March 31, 2017 , which have been deferred as other assets, net on our condensed consolidated balance sheet due to the line of credit features of the Revolving Facility. These deferred financing costs are being amortized as interest expense on a straight line basis over the term of the Revolving Facility. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Note 6—Debt Mortgage Loans As of March 31, 2017 , we have completed seven securitization transactions (the “Securitizations” or the “mortgage loans”) collateralized by homes owned by the respective Invitation Homes Borrower Entities. The proceeds from the mortgage loans were used to fund (i) partial repayments of the then-outstanding IH1 and IH2 credit facilities, (ii) initial deposits in the reserve accounts, (iii) closing costs in connection with the mortgage loans, (iv) general costs associated with our operations, and (v) distributions and dividends to IH1 and IH2 equity investors. The following table sets forth a summary of the mortgage loan indebtedness as of March 31, 2017 and December 31, 2016 : Outstanding Principal Balance (3) Maturity Date (1) Interest Rate (2) Range of Spreads March 31, (4) December 31, IH1 2013-1 N/A N/A 115-365 bps $ — $ 462,431 IH1 2014-1 (5) June 9, 2017 2.83% 100-375 bps 420,944 978,231 IH1 2014-2, net September 9, 2017 2.88% 110-400 bps 706,957 710,664 IH1 2014-3, net (6) December 9, 2017 3.30% 120-500 bps 761,041 766,753 IH2 2015-1, net (7) March 9, 2018 3.34% 145-430 bps 531,373 531,318 IH2 2015-2 (8) June 9, 2017 2.93% 135-370 bps 630,283 630,283 IH2 2015-3 (9) August 9, 2017 3.15% 130-475 bps 1,182,980 1,184,314 Total Securitizations 4,233,578 5,263,994 Less deferred financing costs, net (5,053 ) (9,256 ) Total $ 4,228,525 $ 5,254,738 (1) Each mortgage loan’s initial maturity term is two years, individually subject to three , one - year extension options at the borrower’s discretion (provided that there is no continuing event of default under the loan agreement and the borrower obtains a replacement interest rate cap agreement in a form reasonably acceptable to the lender). Our IH1 2014-1, IH1 2014-2, IH1 2014-3, and IH2 2015-1 mortgage loans have exercised the first extension options. The maturity dates above are reflective of all extensions that have been exercised. (2) Interest rates are based on a weighted average spread to LIBOR; as of March 31, 2017 , LIBOR was 0.98% . (3) Outstanding Principal Balance is net of discounts and does not include capitalized deferred financing costs, net. (4) From April 1, 2017 to May 5, 2017 , we made prepayments of $2,865 on our mortgage loans related to the disposition of properties. (5) On April 28, 2017, the outstanding balance of IH1 2014-1 was repaid in full (see Note 15 ). (6) On May 9, 2017, we made a voluntary prepayment of $510,000 (see Note 15 ). (7) N et of unamortized discount of $0 and $55 as of March 31, 2017 and December 31, 2016 , respectively. (8) On March 9, 2017, we submitted a notification to request an extension of the maturity of the IH2 2015-2 mortgage loan from June 9, 2017 to June 9, 2018 upon approval. (9) On May 9, 2017, we submitted a notification to request an extension of the maturity of the IH2 2015-3 mortgage loan from August 9, 2017 to August 9, 2018 upon approval (see Note 15). Securitization Transactions IH1 2013-1: In November 2013, we completed our first securitization transaction (“IH1 2013-1”), in which 2013-1 IH Borrower L.P. (“S1 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a six component term loan to S1 Borrower in the amount of $479,137 . All six components of the loan were sold at par. We are obligated to make monthly payments of interest and principal with the first payment being due upon the closing of the loan, and subsequent payments beginning January 9, 2014 and continuing monthly thereafter. On February 6, 2017, the outstanding balance of IH1 2013-1 was repaid in full. IH1 2014-1: In May 2014, we completed our second securitization transaction (“IH1 2014-1”), in which 2014-1 IH Borrower L.P. (“S2 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third party lender made a six component term loan to S2 Borrower in the amount of $993,738 . All six components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning July 9, 2014 and continuing monthly thereafter. On February 6, 2017 and March 9, 2017, we made voluntary prepayments of $291,500 and $260,000 , respectively. On April 28, 2017, the outstanding balance of IH1 2014-1 was repaid in full (see Note 15 ). IH1 2014-2: In August 2014, we completed our third securitization transaction (“IH1 2014-2”), in which 2014-2 IH Borrower L.P. (“S3 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a term loan comprised of (1) six floating rate components and (2) one fixed rate component to S3 Borrower in the amount of $719,935 . Of the seven loan components, the Class A, B, C, D and G certificates were sold at par; however, the Class E and F certificates were sold at a total discount of $3,970 . The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheets as of March 31, 2017 and 2016 . We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning October 9, 2014 and continuing monthly thereafter. IH1 2014-3: In November 2014, we completed our fourth securitization transaction (“IH1 2014-3”), in which 2014-3 IH Borrower L.P. (“S4 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender issued a term loan comprised of (1 ) six f loating rate components and (2) one fixed rate component to S4 Borrower in the amount of $769,322 . Of the seven components, the Class B and G certificates were sold at par; however, the Class A, C, D, E and F certificates were sold at a total discount of $7,235 . The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016 . We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning December 9, 2014 and continuing monthly thereafter. On May 9, 2017, we made a voluntary prepayment of $510,000 (see Note 15 ). IH2 2015-1: In January 2015, we completed our fifth securitization transaction (“IH2 2015-1”), in which 2015-1 IH2 Borrower L.P. (“S5 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a seven component term loan to S5 Borrower in the amount of $540,854 . Six of the seven components, the Class A, B, C, D, E, and G certificates were sold at par; however, the Class F certificates were sold at a total discount of $622 . The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016 . We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning March 9, 2015 and continuing monthly thereafter. IH2 2015-2: In April 2015, we completed our sixth securitization transaction (“IH2 2015-2”), in which 2015-2 IH2 Borrower L.P. (“S6 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a seven component term loan to S6 Borrower in the amount of $636,686 . All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning June 9, 2015 and continuing monthly thereafter. IH2 2015-3: In June 2015, we completed our seventh securitization transaction (“IH2 2015-3”), in which 2015-3 IH2 Borrower L.P. (“S7 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a seven component term loan to S7 Borrower in the amount of $1,193,950 . All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning August 7, 2015 and continuing monthly thereafter. Concurrent with the execution of each loan agreement, the respective third-party lender sold each loan it originated with us to individual depositor entities (the “Depositor Entities”) who subsequently transferred each loan to Securitization-specific trust entities (the “Trusts”). The Depositor Entities associated with the IH1 2014-2 and IH1 2014-3 securitizations are wholly owned subsidiaries of IH1, the Depositor Entities associated with the IH2 2015-1, IH2 2015-2, and IH2 2015-3 securitizations are wholly owned subsidiaries of IH2, and the Depositor Entities associated with the IH1 2013-1 and IH1 2014-1 securitizations are wholly owned by unaffiliated third parties. We accounted for the transfer of the individual Securitizations from the Depositor Entities wholly owned by IH1 and IH2 to the respective Trusts as a sale under ASC Topic 860, Transfers and Servicing , with no resulting gain or loss as the Securitizations were both originated by the lender and immediately transferred at the same fair market value. As consideration for the transfer of each loan to the Trusts, the Trusts issued certificate classes which mirror the components of the individual loan agreements (collectively, the “Certificates”) to the Depositor Entities, except that Class R certificates do not have related loan components as they represent residual interests in the Trusts. The Certificates represent the entire beneficial interest in the Trusts. Following receipt of the Certificates, the Depositor Entities sold the Certificates to investors using the proceeds as consideration for the loans sold to the Depositor Entities by the lenders. These transactions had no effect on our condensed consolidated financial statements other than with respect to the Class G certificates purchased by IH1 and IH2. For IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3, the Trusts made the Class A through Class F certificates available for sale to both domestic and foreign investors. With the introduction of foreign investment, IH1 and IH2, as sponsors of the respective loans, are required to retain a portion of the risk that represents a material net economic interest in each loan. The Class G certificates for IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 are equal to 5% of the original principal amount of the loans in accordance with the agreements. Per the terms of the Securitization agreements, the Class G certificates are restricted certificates and were made available exclusively to IH1 and IH2, as applicable. The Class G certificates are principal only and bear a stated annual interest rate of 0.0005% . The Class G certificates are classified as held to maturity investments and are recorded in other assets, net in the condensed consolidated balance sheets (see Note 5 ). The Trusts are structured as pass through entities that receive principal and interest from the Securitizations and distribute those payments to the holders of the Certificates. The assets held by the Trusts are restricted and can only be used to fulfill the obligations of those entities. The obligations of the Trusts do not have any recourse to the general credit of any entities in these condensed consolidated financial statements. We have evaluated our interests in the Class G certificates of the Trusts and determined that they do not create a more than insignificant variable interest in the Trusts. Additionally, the Class G certificates do not provide us with any ability to direct the activities that could impact the Trusts’ economic performance. Therefore, we do not consolidate the Trusts. General Terms The general terms that apply to all of the mortgage loans require us to maintain compliance with certain affirmative and negative covenants. Affirmative covenants with which we must comply include our, and certain of our affiliates’, compliance with (i) licensing, permitting and legal requirements specified in the loan agreement, (ii) organizational requirements of the jurisdictions in which we, and certain of our affiliates, are organized, (iii) federal and state tax laws, and (iv) books and records requirements specified in the respective loan agreements. Negative covenants with which we must comply include our, and certain of our affiliates’, compliance with limitations surrounding (i) the amount of our indebtedness and the nature of our investments, (ii) the execution of transactions with affiliates, (iii) the Manager, and (iv) the nature of our business activities. At March 31, 2017 , and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants. Prepayments For the mortgage loans, prepayments of amounts owed are generally not permitted by us under the terms of the respective loan agreements unless such prepayments are made pursuant to the voluntary election and mandatory provisions specified in such agreements. The specified mandatory provisions become effective to the extent that a property becomes characterized as a disqualified property, a property is sold, and/or upon the occurrence of a condemnation or casualty event associated with a property. To the extent either a voluntary election is made, or a mandatory prepayment condition exists, in addition to paying all interest and principal, we must also pay certain breakage costs as determined by the loan servicer and a spread maintenance premium if prepayment occurs before the month following the one year anniversary of the closing dates of the mortgage loans. For the three months ended March 31, 2017 and 2016 , voluntary and mandatory prepayments totaling $1,030,471 and $29,598 , respectively, were made under the terms of the loan agreements. Collateral Collateral for the mortgage loans includes first priority mortgages on certain of our properties and a grant of a security interest in all of our personal property. The following table lists the gross carrying values of the single-family residential properties, including held for sale properties, pledged as collateral for the loans as of March 31, 2017 and December 31, 2016 : Number of (1) March 31, December 31, IH1 2013-1 — $ — $ 533,005 IH1 2014-1 6,268 1,124,008 1,124,069 IH1 2014-2 3,634 785,486 785,459 IH1 2014-3 3,950 847,960 850,056 IH2 2015-1 3,021 594,600 594,155 IH2 2015-2 3,520 744,605 744,070 IH2 2015-3 7,162 1,380,734 1,382,683 Total 27,555 $ 5,477,393 $ 6,013,497 (1) The loans are secured by first priority mortgages on portfolios of single-family residential properties owned by S1 Borrower, S2 Borrower, S3 Borrower, S4 Borrower, S5 Borrower, S6 Borrower, and S7 Borrower. The numbers of homes noted above are as of March 31, 2017 . As of December 31, 2016 , a total of 30,900 homes (unaudited) were secured by the above-mentioned mortgage loans. Debt Maturities Schedule Future maturities of these mortgage loans as of March 31, 2017 are set forth in the table below: Year Principal (1) 2017 $ 3,702,205 2018 531,373 Total payments $ 4,233,578 (1) Each mortgage loan is subject to three one -year extension options at the borrower's discretion, of which the IH1 2014-1, IH1 2014-2, IH1 2014-3 and IH2 2015-1 mortgage loans have exercised the first extension options. New Credit Facility On February 6, 2017, we entered into a loan agreement with a syndicate of banks, financial institutions and institutional lenders for a new credit facility (the “New Credit Facility”). The New Credit Facility provides $2,500,000 of borrowing capacity and consists of a $1,000,000 revolving facility (the “Revolving Facility”), which will mature on February 6, 2021, with a one -year extension option, and a $1,500,000 term loan facility (the “Term Loan Facility”), which will mature on February 6, 2022. The Revolving Facility also includes borrowing capacity available for letters of credit and for short-term borrowings referred to as swing line borrowings, in each case subject to certain sublimits. The New Credit Facility provides us with the option to enter into additional incremental credit facilities (including an uncommitted incremental facility that provides us with the option to increase the size of the Revolving Facility and/or the Term Loan Facility by an aggregate amount of up to $ 1,500,000 ), subject to certain limitations. Proceeds from the Term Loan Facility were used to repay existing indebtedness and for general corporate purposes. The following table sets forth a summary of the outstanding principal amounts under such loans as of March 31, 2017 : Maturity Date Interest Rate (1) March 31, Term loan facility February 6, 2022 2.78% $ 1,500,000 Revolving facility February 6, 2021 N/A — Total 1,500,000 Less deferred financing costs, net (14,134 ) Total $ 1,485,866 (1) Interest rate for the Term Loan Facility is based on LIBOR plus an applicable margin of 1.80% ; as of March 31, 2017 , LIBOR was 0.98% . Interest Rate and Fees Borrowings under the New Credit Facility bear interest, at our option, at a rate equal to a margin over either (a) a LIBOR rate determined by reference to the Bloomberg LIBOR rate (or comparable or successor rate) for the interest period relevant to such borrowing or (b) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus 0.50% , and (3) the LIBOR rate that would be payable on such day for a LIBOR rate loan with a one-month interest period plus 1.00% . The margin is based on a total leverage based grid. The margin for the Revolving Facility ranges from 0.75% to 1.30% , in the case of base rate loans, and 1.75% to 2.30% , in the case of LIBOR rate loans. The margin for the Term Loan Facility ranges from 0.70% to 1.30% , in the case of base rate loans, and 1.70% to 2.30% , in the case of LIBOR rate loans. In addition, the New Credit Facility provides that, upon receiving an investment grade rating on its non-credit enhanced, senior unsecured long term debt of BBB- or better from Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or Baa3 or better from Moody’s Investors Service, Inc. (an “Investment Grade Rating Event”), we may elect to convert to a credit rating based pricing grid. In addition to paying interest on outstanding principal under the New Credit Facility, we are required to pay a facility fee to the lenders under the Revolving Facility in respect of the unused commitments thereunder. The facility fee rate is based on the daily unused amount of the Revolving Facility and is either 0.350% or 0.200% per annum based on the unused facility amount. Upon converting to a credit rating pricing based grid, the unused facility fee will no longer apply; and we will be required to pay a facility fee ranging from 0.125% to 0.300% . We are also required to pay customary letter of credit fees. Prepayments and Amortization No prepayment or amortization is required under the New Credit Facility. We are permitted to voluntarily repay amounts outstanding under the Term Loan Facility at any time without premium or penalty, subject to certain minimum amounts and the payment of customary “breakage” costs with respect to LIBOR loans. Once repaid, no further borrowings will be permitted under the Term Loan Facility. General Terms The New Credit Facility contains certain customary affirmative and negative covenants and events of default. Such covenants will, among other things, restrict, subject to certain exceptions, our ability and that of the Subsidiary Guarantors (as defined below) and their respective subsidiaries to (i) engage in certain mergers, consolidations or liquidations, (ii) sell, lease or transfer all or substantially all of their respective assets, (iii) engage in certain transactions with affiliates, (iv) make changes to the our fiscal year, (v) make changes in the nature of our business and our subsidiaries and (vi) incur additional indebtedness that is secured on a pari passu basis with the New Credit Facility. The New Credit Facility also requires us, on a consolidated basis with our subsidiaries, to maintain a (i) maximum total leverage ratio, (ii) maximum secured leverage ratio, (iii) maximum unencumbered leverage ratio, (iv) minimum fixed charge coverage ratio, (v) minimum unencumbered fixed charge coverage ratio and (vi) minimum tangible net worth. If an event of default occurs, the lenders under the New Credit Facility are entitled to take various actions, including the acceleration of amounts due under the New Credit Facility and all actions permitted to be taken by a secured creditor. At March 31, 2017 , and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants. Guarantees and Security The obligations under the New Credit Facility are guaranteed on a joint and several basis by each of our direct and indirect domestic wholly owned subsidiaries that own, directly or indirectly, unencumbered assets (the “Subsidiary Guarantors”), subject to certain exceptions. The guarantee provided by any Subsidiary Guarantor will be automatically released upon the occurrence of certain events, including if it no longer has a direct or indirect interest in an unencumbered asset or as a result of certain non-recourse refinancing transactions pursuant to which such Subsidiary Guarantor becomes contractually prohibited from providing its guaranty of the New Credit Facility. In addition, Invitation Homes Inc. may be required to provide a guarantee of the New Credit Facility under certain circumstances, including if Invitation Homes Inc. does not maintain its qualification as a REIT. The New Credit Facility is collateralized by first priority or equivalent security interests in all the capital stock of, or other equity interests in any Subsidiary Guarantor, held by us and each of the Subsidiary Guarantors. The security interests granted under the New Credit Facility will be automatically released upon the occurrence of certain events, including upon an Investment Grade Rating Event or if the total net leverage ratio is less than or equal to 8.00 : 1.00 for four consecutive fiscal quarters. Debt Maturities Schedule Future maturities of the New Credit Facility as of March 31, 2017 are set forth in the table below: Year Principal 2022 $ 1,500,000 Credit Facilities All of the then-existing credit facilities were paid in full on February 6, 2017 in connection with the closing of our IPO. The following table sets forth a summary of the outstanding principal amounts of these credit facilities as of March 31, 2017 and December 31, 2016 : Outstanding Principal Balance (1) Credit Facility Origination Range of Spreads March 31, December 31, IH1 2015 April 3, 2015 325 bps $ — $ 85,492 IH2 2015 September 29, 2015 275 bps — 43,859 IH3 2013 December 19, 2013 300-425 bps — 932,583 IH4 2014 May 5, 2014 300-425 bps — 529,866 IH5 2014 December 5, 2014 275-400 bps — 564,348 IH6 2016 April 13, 2016 250-375 bps — 165,437 Total — 2,321,585 Less deferred financing costs, net — (6,044 ) Total $ — $ 2,315,541 (1) Outstanding Principal Balance does not include capitalized deferred financing costs, net. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 7—Derivative Instruments From time to time, we enter into Hedging Derivatives to manage the economic risk of changes in interest rates. We do not enter into derivative transactions for speculative or trading purposes. Designated hedges are derivatives that meet the criteria for hedge accounting and for which we have elected to designate them as hedges. Non-Designated Hedges are derivatives that do not meet the criteria for hedge accounting or we have not elected to designate them as hedges. Designated Hedges We have entered into various interest rate swap agreements, as outlined in the table below. Certain of the Invitation Homes Partnerships and certain Borrower Entities guaranteed the obligations under each of the interest rate swaps from the date the swaps were entered through the date of the IPO. Each of these swaps were accounted for as non-designated hedges until January 31, 2017, when the criteria for hedge accounting were met as a result of the Pre-IPO Transactions described in Note 1. At that time, we designated these swaps for hedge accounting purposes; and the effective portion of changes in the fair value of these swaps is recorded in other comprehensive income subsequent to that date. The table below summarizes our interest rate swap instruments as of March 31, 2017 : Agreement Date Forward Maturity Date Strike Rate Index Notional Amount December 21, 2016 February 28, 2017 January 31, 2022 1.97% One-month LIBOR $ 750,000 December 21, 2016 February 28, 2017 January 31, 2022 1.97% One-month LIBOR 750,000 January 12, 2017 February 28, 2017 August 7, 2020 1.59% One-month LIBOR 1,100,000 January 13, 2017 February 28, 2017 June 9, 2020 1.63% One-month LIBOR 595,000 January 20, 2017 February 28, 2017 March 9, 2020 1.60% One-month LIBOR 325,000 The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income on the condensed consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three months ended March 31, 2017 , such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Changes in fair value related to the ineffective portion of our Designated Hedges resulted in an unrealized gain of $1 for the three months ended March 31, 2017 , which is included in interest expense in our condensed consolidated statements of operations. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next twelve months, we estimate that an additional $16,003 will be reclassified to earnings as an increase to interest expense. There were no interest rate swap agreements outstanding for the three months ended March 31, 2016. Non-Designated Hedges Concurrent with entering into certain of the mortgage loan agreements, we entered into and maintain interest rate cap agreements with terms and notional amounts equivalent to the terms and amounts of the loans made by the third-party lenders and strike prices ranging from approximately 2.07% to 3.82% (collectively, the “Strike Prices”). To the extent that the maturity date of one or more of the loans is extended through an exercise of one or more of the extension options, replacement or extension interest rate cap agreements must be executed with terms similar to those associated with the initial interest rate cap agreements and strike prices equal to the greater of the Strike Prices and the interest rate at which the debt service coverage ratio (as defined) is not less than 1.2 to 1.0 . The interest rate cap agreements, including all of our rights to payments owed by the counterparty and all other rights, have been pledged as additional collateral for the loans. Changes in fair value related to Non-Designated Hedges resulted in unrealized losses of $3,752 for the three months ended March 31, 2017 , which are included in interest expense in our condensed consolidated statements of operations. Of the unrealized losses, $3,674 related to changes in value on interest rate swaps prior to their designation on January 31, 2017, and $78 related to the non-designated interest rate caps. Tabular Disclosure of Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016 : Asset Derivatives Liability Derivatives Fair Value at: Fair Value at: Balance March 31, December 31, Balance March 31, December 31, Derivatives designated as Interest rate swaps Other $ 5,907 $ — Other $ 4,775 $ — Derivatives not designated as Interest rate swaps Other — — Other — 8,683 Interest rate caps Other 11 29 Other — — Total $ 5,918 $ 29 $ 4,775 $ 8,683 Tabular Disclosure of the Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months ended March 31, 2017 and 2016 : Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of (Gain) Loss Reclassified from Accumulated OCI into Net Loss (Effective Portion) Amount of (Gain) Loss Reclassified from Accumulated OCI into Net Loss (Effective Portion) Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) For the Three Months Ended For the Three Months Ended For the Three Months Ended 2017 2016 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationships Interest rate swaps $ 10,561 $ — Interest $ (2,711 ) $ — Interest $ 1 $ — Total $ 10,561 $ — $ (2,711 ) $ — $ 1 $ — Location of Gain (Loss) Recognized in Net Loss on Derivative Amount of Gain (Loss) Recognized in Net Loss on Derivative For the Three Months Ended 2017 2016 Derivatives Not Designated as Hedging Instruments Interest rate swaps Interest expense (3,674 ) — Interest rate caps Interest expense $ (78 ) $ — Total $ (3,752 ) $ — Credit-Risk-Related Contingent Features We have agreements with our derivative counterparties for our interest rate swap agreements that contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness. As of March 31, 2017 , the fair value of interest rate swap derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $5,172 . As of March 31, 2017 , we have not posted any collateral related to these agreements. If we have breached any of these provisions at March 31, 2017 , we could have been required to settle its obligations under the agreements at their termination value of $5,172 . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Equity | Note 8—Equity Shareholders’ Equity In connection with our IPO, we issued 310,376,634 shares of common stock to the public and the Pre-IPO Owners and 3,290,126 RSUs (see Note 10 ), and our IPO raised $1,692,058 , net of underwriting discount, and before offering costs of $5,426 . To qualify as a REIT, we are required to distribute annually to our shareholders at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our net taxable income. We intend to pay quarterly dividends to our shareholders, which in the aggregate are approximately equal to or exceed our net taxable income in the relevant year. On May 4, 2017, the board of directors declared a $0.06 dividend per share, payable May 31, 2017 (see Note 15). Combined Equity Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure. As described in Note 1, IH1, IH3, IH4, IH5, and IH6 are partnerships. These entities each had limited partners and a general partner (the “Class A Partners”), along with a board of directors designated in the respective limited partnership agreements. IH2 was a Delaware corporation and had issued 1,000 shares of common stock and 113 shares of Series A Preferred Stock. IH2 had a board of directors elected by the common stockholders. The same board of directors was responsible for directing the significant activities of the Invitation Homes Partnerships and the Operating Partnership on a combined basis. The IH2 Series A Preferred Stock ranked, in respect of rights to the payment of dividends and the distribution of assets in the event of any liquidation or dissolution, senior to the IH2 common stock. Holders of such IH2 Series A Preferred Stock shares were entitled to receive cumulative cash dividends at the rate of 12.0% per annum of the total of a liquidation preference. On January 31, 2017, in connection with the Pre-IPO Transactions, the Series A Preferred Stock was redeemed for $1,153 , inclusive of the redemption premium and accrued and unpaid dividends to that date. No dividends were made with respect to the Series A Preferred Stock during the three months ended March 31, 2016 . As of December 31, 2016 , there were no dividend amounts declared and outstanding related to the 12.0% per annum dividend requirements of the Series A Preferred Stock. Profits and losses, and cash distributions were allocated in accordance with the terms of the respective entity’s organizational documents. During the three months ended March 31, 2017 and 2016 , we made no distributions to our equity investors, and we received $128,002 of contributions during the three months ended March 31, 2016 . As further described in Note 10, we granted certain individuals incentive compensation units in IH1, IH2, IH3, IH4, IH5, and IH6, which consisted of Class B units that were accounted for as a substantive class of equity due to the terms of the agreements and rights of the holders. We previously made distributions to certain Class B unitholders in the form of non-recourse cash advances totaling $11,023 . Any amounts distributed to the holders of the Class B units whose Class B units were converted in connection with the Pre-IPO Transactions (see Note 10), reduced the number of converted shares common stock received by amounts previously paid to such Class B unitholders as advance distributions. As a result of the Pre-IPO Transactions, there are no longer any Class B Units outstanding. We previously executed notes receivables with certain Class B unitholders (the “Class B Notes”) and funded $20,228 pursuant to those note agreements, of which $1,527 , including accrued interest had been repaid as of December 31, 2016 . On January 5, 2017, $7,723 of Class B Notes, including accrued interest, were canceled, and the transaction was accounted for as a distribution to the underlying unitholder. As part of the Pre-IPO Transactions, IH1 assigned $11,963 , including accrued interest, of Class B Notes to a wholly owned subsidiary of the Pre-IPO Owners that was formed in connection with the reorganization described in Note 1, and the transaction was accounted for as a distribution. The Class B Notes were secured by certain of the Class B units of the makers of the Class B Notes and were otherwise non-recourse to the makers. The Class B Notes matured at the earlier of a liquidation event or defined dates in 2024 and bore interest of 1.57% to 1.97% per annum. As such, the Class B Notes were recorded as a component of combined equity in our condensed consolidated balance sheets as of December 31, 2016 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9—Related Party Transactions Through December 31, 2014, certain related parties provided us with consulting services for which we recorded payables. We also made offsetting income tax payments related to distributions on behalf of these related parties. During the year ended December 31, 2016 , we repaid the $1,959 outstanding as of December 31, 2015. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Note 10—Share-Based Compensation We have share-based compensation programs for the purpose of retaining certain key employees. Prior to the IPO, the program consisted of incentive compensation units, the Class B Units, granted in the form of profits interests in the Invitation Homes Partnerships. In connection with the IPO, we granted awards in the form of RSUs that settle in shares of common stock of Invitation Homes Inc. and RSAs that are restricted shares of common stock of Invitation Homes Inc. Profits Interests — Class B Units Prior to the IPO, the Invitation Homes Partnerships granted incentive compensation units to certain key employees, which were profits interests for United States federal income tax purposes. The Class B Units were accounted for as a substantive class of equity and contained both service based and performance based vesting criteria. Recognition of compensation expense was recorded based on whether or not the award recipient was an employee of the Manager, a wholly owned subsidiary of IH1, resulting in some awards being recognized based on grant-date fair value and others being remeasured at each reporting period until the actual vesting date as required for non-employee awards. Prior to the IPO, none of the performance based vesting criteria had been achieved, and as such through the date of the IPO, no compensation expense had been recorded for performance based Class B Units. However, the IPO triggered achievement of the performance based criteria and effectively converted all such awards into service based awards. 2017 New Awards: Pursuant to an amended and restated partnership agreement, on January 5, 2017, IH6 issued certain individuals a total of 9,650 Class B Units that were expected to vest based on terms and conditions similar to all other Class B Units. In January 2017, an additional 188 Class B Units in total were issued from IH1, IH2, and IH3. 2017 Class B Unit Conversion: The Pre-IPO Transactions described in Note 1 resulted in accelerated vesting of 7,520 Class B Units held by certain unitholders which resulted in additional share-based compensation expense of $11,601 . On January 31, 2017, in connection with the IPO, all of the Class B Units held by current employees of the Manager (except for 3,878 fully vested Class B Units awarded to a certain unitholder) were either converted into shares of Invitation Homes Inc. common stock or canceled based on the value of the Class B Units implied by the per share price of common stock sold to the public in the IPO. As such, a total of 730 Class B Units were converted into 62,529 RSAs, and 17,669 Class B Units were canceled for no consideration. For the Class B Units converted into RSAs, vesting and other terms of the RSAs delivered in the conversion have the same vesting and other terms applicable to the corresponding Class B Units converted. Additionally, the obligations under the remaining 40,992 fully vested Class B Units, including those of the unitholders who are not current employees of the Manager and the one employee unitholder noted above that did not convert, were converted into similar units of newly formed subsidiaries of the Pre-IPO Owners. There are no nonvested Class B Units held by former employees of the Manager. The following table summarizes the activity related to the Class B Units for the three months ended March 31, 2017: Class B Units Employee Non-employee Total Class B Units Number of Units Weighted Average Fair Value Number of Units Weighted Average Fair Value Number of Units Weighted Average Fair Value Balance, December 31, 2016 9,915 $ 4.2 39,638 $ 2.5 49,553 $ 2.9 Granted 85 14.0 9,753 — 9,838 0.1 Converted to RSAs (245 ) (3.4 ) (485 ) (0.8 ) (730 ) (1.7 ) Canceled (555 ) (8.2 ) (17,114 ) (0.4 ) (17,669 ) (0.6 ) Converted to Units of affiliated entities (9,200 ) (4.0 ) (31,792 ) (2.9 ) (40,992 ) (3.2 ) Balance, March 31, 2017 — $ — — $ — — $ — As of March 31, 2017, no Class B Units were outstanding. RSAs and RSUs Issued by Invitation Homes Inc. RSAs: In connection with the conversion of the Class B Units, we issued 62,529 RSAs, of which 51,039 were fully vested as of March 31, 2017, and the remaining 11,490 nonvested RSAs will vest in accordance with the original terms of the Class B Unit award agreements. The conversion of the Class B Units into RSAs resulted in a modification of the awards of which some were previously accounted for as non-employee awards. The modification resulted in the reversal of $246 of previously recognized incentive compensation expense with respect to these non-employee awards. RSUs: Prior to the completion of the IPO, our board of directors adopted, and our stockholders approved, the Invitation Homes Inc. 2017 Omnibus Incentive Plan (the “Omnibus Incentive Plan”) to provide a means through which to attract and retain key personnel and to provide a means whereby our directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in us, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock, and aligning their interests with those of our stockholders. Under the Omnibus Incentive Plan, we may issue up to 16,000,000 shares, and as of March 31, 2017, we have awarded 3,290,126 shares under the Omnibus Incentive Plan pursuant to our Supplemental Bonus Plan and the IH6 Bonus Awards and to certain non-employee directors. • Supplemental Bonus Plan: In October 2016, we established a supplemental bonus plan for certain key executives and employees (the “Supplemental Bonus Plan”). Pursuant to the Supplemental Bonus plan, the awards became payable and the payment amount became determinable upon the completion of the IPO. The $59,580 of awards were converted into 2,979,001 time-vesting RSUs that will generally vest in three equal annual installments, commencing on the completion of the Invitation Homes Inc. IPO and on the first and second anniversaries thereafter. • IH6 Bonus Awards: In addition to the Class B Units granted by IH6 to certain individuals, these individuals were also granted bonus awards (the “IH6 Bonus Awards”) equal to $0.5 multiplied by the 9,650 IH6 Class B Units granted, entitling the recipients to receive bonus payments in connection with an IPO or exit event. Upon completion of the Invitation Homes Inc. IPO, the IH6 Bonus Awards became payable to the recipients and were converted into the right to receive shares of common stock. The $4,825 of awards were settled in the form of 241,250 RSUs that were fully vested upon issuance. • Director Awards: Invitation Homes Inc. issued $1,398 of awards, or 69,875 RSUs, to directors who are not our employees or employees of BREP VII. These awards will fully vest on the date scheduled for Invitation Homes Inc.’s 2018 annual stockholders meeting, subject to the director’s continued service on the board of directors through such date. The following tables summarize the status of non-vested RSUs and RSAs as of March 31, 2017 and changes during the period from January 31, 2017 through March 31, 2017: RSUs RSAs Total Share-Based Awards Number Weighted Average Number Weighted Average Number Weighted Average Balance, January 1, 2017 — $ — — $ — — $ — Granted 3,290,126 20.00 62,529 15.50 3,352,655 19.92 Vested (1) (1,405,070 ) (20.00 ) (51,039 ) (15.88 ) (1,456,109 ) (19.86 ) Forfeited (51,252 ) (20.00 ) — — (51,252 ) (20.00 ) Balance, March 31, 2017 1,833,804 $ 20.00 11,490 $ 13.83 1,845,294 $ 19.96 (1) All vested RSAs and RSUs are included in basic EPS for the period during which they are outstanding. However, the vested RSUs will not settle with the individual awardees until July 30, 2017, and therefore are not included in legally outstanding shares of common stock as of March 31, 2017. During the period from January 31, 2017 through March 31, 2017, 51,039 RSAs and 1,405,070 RSUs with an estimated fair value of $28,912 fully vested. As of March 31, 2017, no RSAs or RSUs included performance-based vesting criteria. Grant date fair value of the RSAs and RSUs is generally based on the closing price of our common stock on the grant date; however, for the awards granted in connection with the IPO, the grant-date fair value is the opening offering price per common share. Summary of Total Share-Based Compensation Expense During the three months ended March 31, 2017 and 2016, we recognized $44,244 and $4,206 respectively, of share-based compensation expense, comprised of the following: Share-Based Compensation Expense for the Three Months Ended March 31, 2017 2016 General and Administrative Property Management Expense General and Administrative Property Management Expense Unrecognized Expense at Class B Units $ 11,998 $ 3 $ 4,051 $ 155 $ — RSUs 28,463 4,020 — — 32,294 RSAs (190 ) (50 ) — — 28 Total $ 40,271 $ 3,973 $ 4,051 $ 155 $ 32,322 As of March 31, 2017, there was $32,322 of unrecognized share-based compensation expense related to nonvested RSUs and RSAs which is expected to be recognized over a weighted average period of 1.36 years. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11—Fair Value Measurements The carrying amounts of restricted cash, certain components of other assets, accounts payable and accrued expenses, resident security deposits, and other liabilities approximate fair value due to the short maturity of these amounts. Our interest rate swap agreements are the only financial instruments recorded at fair value on a recurring basis within our condensed consolidated financial statements. The fair values of our interest rate caps and swaps, which are classified as Level 2 in the fair value hierarchy, are estimated using market values of instruments with similar attributes and maturities. See Note 7 for the details of the balance sheet classification and the fair values for the interest rate caps and swaps. The following table displays the carrying values and fair values of financial instruments as of March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Carrying Value Fair Carrying Value Fair Assets carried at historical cost on the consolidated balance sheets Investments in debt securities Level 2 $ 209,386 $ 209,744 $ 209,337 $ 209,390 Liabilities carried at historical cost on the consolidated balance sheets Mortgage loans (1) Level 2 $ 4,233,578 $ 4,245,640 $ 5,263,994 $ 5,265,180 Term loan facility (2) Level 3 1,500,000 1,501,639 — — Credit facilities (3) Level 3 — — 2,321,585 2,329,551 (1) The carrying values of the mortgage loans are shown net of discount and exclude $5,053 and $9,256 of deferred financing costs as of March 31, 2017 and December 31, 2016 , respectively. (2) The carrying value of the term loan facility excludes $14,134 of deferred financing costs as of March 31, 2017 . (3) The carrying values of the credit facilities exclude $6,044 of deferred financing costs as of December 31, 2016 . The fair values of our investments in debt securities and of our mortgage loans, which are classified as Level 2 in the fair value hierarchy, are estimated based on market bid prices of comparable instruments at the end of the period. The fair values of our credit facilities and Term Loan Facility, which are classified as Level 3 in the fair value hierarchy, are estimated using a discounted cash flow methodology based on market interest rate data and other market factors available at the end of the period. Our assets measured at fair value on a nonrecurring basis are those assets for which we have recorded impairments. The assets for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below: Three Months Ended March 31, 2017 2016 Investments in single-family residential properties, net held for use (Level 3) Pre-impairment amount $ 496 $ — Total impairments (267 ) — Fair value $ 229 $ — Three Months Ended March 31, 2017 2016 Investments in single-family residential properties, net held for sale (Level 3) Pre-impairment amount $ 7,242 $ — Total impairments (770 ) — Fair value $ 6,472 $ — For additional information related to our single-family residential properties during the years ended March 31, 2017 and 2016 , refer to Note 3 . |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12—Earnings per Share We compute EPS only for the period our common stock was outstanding during 2017, referred to as the Post-IPO period. We have defined the Post-IPO period as February 1, 2017, the date our shares began trading on the New York Stock Exchange, through March 31, 2017 , or 59 days of activity for the reporting period ended March 31, 2017 . Basic EPS is computed by dividing the net loss available to common shareholders for the Post-IPO period by the weighted average number of shares outstanding during the Post-IPO period, adjusted for nonvested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of nonvested RSUs and RSAs except when doing so would be anti-dilutive. All outstanding nonvested RSUs and RSAs that have nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating securities according to dividends or dividend equivalent and participation rights in undistributed earnings in periods when we have net income. All of our nonvested RSUs and RSAs are considered participating securities. Basic and diluted EPS are calculated as follows: (in thousands, except share and per share data) February 1, 2017 through Numerator: Net loss available to common shareholders $ (25,512 ) Denominator: Basic and diluted weighted average common shares outstanding 311,651,082 Net loss per common share — basic and diluted $ (0.08 ) Incremental shares attributed to nonvested RSUs and RSAs of 297,176 for the period ended March 31, 2017 , were excluded from the computation of diluted EPS because we had a net loss for the period, and any incremental shares would be anti-dilutive. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13—Income Tax We account for income taxes under the asset and liability method. For the TRSs, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We provide a valuation allowance, from time to time, for deferred tax assets for which we do not consider realization of such assets to be more likely than not. As of March 31, 2017 , there were no deferred tax assets and liabilities or unrecognized tax benefits recorded. We do not anticipate a significant change in unrecognized tax benefits within the next 12 months. During the three months ended March 31, 2017 , we sold assets subject to Section 337(d) of the Code (see additional discussion in Note 2 ). These transactions resulted in $1,134 of current income tax expense which has been recorded in gain on sale of property , net of tax on the the condensed consolidated statement of operations . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14—Commitments and Contingencies Insurance Policies Pursuant to the terms of our credit facility agreements and mortgage loan agreements (see Note 6 ), laws and regulations of the jurisdictions in which our properties are located, and general business practices, we are required to procure insurance on our properties. For the three months ended March 31, 2017 and 2016 , no material uninsured losses have been incurred with respect to the properties. Legal Matters We are subject to various legal proceedings and claims that arise in the ordinary course of our business. We accrue a liability when we believe that it is both probable that a liability has been incurred and that we can reasonably estimate the amount of the loss. We do not believe that the final outcome of these proceedings or matters will have a material adverse effect on our condensed consolidated financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15—Subsequent Events In connection with the preparation of the accompanying condensed consolidated financial statements, we have evaluated events and transactions occurring after March 31, 2017 , for potential recognition or disclosure. Extensions of Existing Mortgage Loans On May 9, 2017, we submitted a notification to request an extension of the maturity of the IH2 2015-3 mortgage loan from August 9, 2017 to August 9, 2018 upon approval . FNMA Securitization Transaction On April 28, 2017, we completed our eighth securitization transaction pursuant to which we entered into a loan agreement with Wells Fargo Bank, National Association (the “FNMA Loan”), providing for a ten -year, fixed rate mortgage loan comprised of two components with a total principal amount of $1,000,000 , secured by first priority mortgages on a portfolio of 7,204 of our homes. The FNMA Loan was funded through the issuance and sale of the following certificates issued by trust entities: (i) certain mortgage backed certificates that benefit from Fannie Mae’s guaranty of timely payment of principal and interest (the “Guaranteed Certificates”) and (ii) certain mortgage backed certificates that represent a beneficial interest in the most subordinate component of the FNMA Loan (the “Subordinate Non-Guaranteed Certificates”). In connection with the FNMA Loan, we purchased and retain the Subordinate Non-Guaranteed Certificates. We used proceeds from the FNMA Loan to repay the remaining $420,000 balance outstanding under our mortgage loan relating to the IH1 2014-1 securitization transaction, to fund certain reserves, and to pay transaction fees and expenses incurred with respect to the FNMA Loan. The IH1 2014-1 mortgage loan outstanding balance had been reduced as of April 28, 2017, due to repayments from IPO proceeds and proceeds from sales of homes. On May 9, 2017, the remaining proceeds of $510,000 were used to make a voluntary prepayment on our IH1 2014-3 mortgage loan. The FNMA Loan bears interest at a fixed rate of 4.23% per annum equal to the market determined pass-through rate payable on the Guaranteed Certificates, plus applicable Fannie Mae guaranty and servicing fees. The FNMA Loan is generally non-recourse, subject to certain customary carve-outs in respect of which the Operating Partnership provided a limited recourse guaranty. The FNMA Loan requires us to comply with various affirmative and negative covenants that are customary for loans of this type, including limitations on indebtedness that the borrower can incur, limitations on sales and dispositions of properties, required maintenance of specified cash reserves, and various restrictions on the use of cash generated by the operations of the collateralized properties while the FNMA Loan is outstanding. The FNMA Loan also includes customary events of default, the occurrence of which would allow the lender to accelerate payment of all amounts outstanding. Dividend Declarations On May 4, 2017, the board of directors declared a $0.06 dividend per share, payable May 31, 2017. Residential Property Dispositions Between April 1, 2017 and May 5, 2017 , we disposed of 97 homes with a net carrying amount of $12,691 as of March 31, 2017 , for an aggregate net sales price of $15,833 . A portion of the proceeds were used to make various prepayments on our mortgage loans totaling $2,865 . At March 31, 2017 , 83 of these properties were classified as held for sale and presented in other assets, net and 14 were classified as investments in single-family residential properties on our condensed consolidated balance sheet. |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our audited combined and consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Subsequent to the date of the Pre-IPO Transactions, these condensed consolidated financial statements include the accounts of Invitation Homes Inc. and its wholly owned subsidiaries. Prior to the date of the Pre-IPO Transactions, these combined and consolidated financial statements include the combined accounts of the Operating Partnership and the Invitation Homes Partnerships and their wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in these condensed consolidated financial statements. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. We consolidate entities when we own, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. We consolidate variable interest entities (“VIEs”) in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation , as amended by Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810)—Amendments to the Consolidation Analysis (“ASU 2015-02”), if we are the primary beneficiary of the VIE as determined by our power to direct the VIE’s activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted only for transactions that occurred before the issuance date of the guidance and has not been previously reported in issued financial statements. Effective January 1, 2017, we adopted ASU 2017-01, and the adoption of this standard had no impact on our condensed consolidated financial statements for any period presented. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Effective January 1, 2017, we adopted ASU 2016-09, and the adoption of this standard had no impact on our condensed consolidated financial statements for any period presented. Recent Accounting Pronouncements In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that period changes in the total of cash, cash equivalents, and amounts generally described as restricted cash or cash equivalents are explained in the statement of cash flow. Thus, amounts generally described as restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning and ending balances shown in the statement of cash flows. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which clarifies the classification of certain cash receipts and cash payments including debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims, and beneficial interests in securitization transactions. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which will require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than one year. Lessor accounting will remain similar to lessor accounting under current GAAP, while aligning with the FASB’s new revenue recognition guidance. The new standard will be effective for us for annual reporting periods beginning after December 15, 2018, and for interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which provides guidance on revenue recognition and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , most industry-specific guidance and some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts . The standard’s core principle is that a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These judgments may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. At that time, we may adopt the full retrospective approach or the modified retrospective approach. Early adoption is permitted only as of annual reporting periods, and interim periods therein, beginning after December 15, 2016. We are currently evaluating the method of adoption of this guidance, as well as the impact of the guidance on our condensed consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates. |
Investments in Single-Family Residential Properties | Investments in Single-Family Residential Properties Upon acquisition, we evaluate our acquired single-family residential properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Upon adoption of ASU 2017-01, our purchases of homes are treated as acquisitions and are recorded at their purchase price which is allocated between land, building and improvements, and in-place lease intangibles (when a tenant is in place at the acquisition date) based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, bidding service and title fees, payments made to cure tax, utility, homeowners’ association (“HOA”), and other mechanic’s and miscellaneous liens, as well as other closing costs. The fair values of acquired in-place lease intangibles, if any, are based on the costs to execute similar leases, including commissions and other related costs. The origination value of in-place lease intangibles also includes an estimate of lost rent revenue at in-place rental rates during the estimated time required to lease the property. The in-place lease intangibles are amortized over the life of the leases and are recorded in other assets, net in our condensed consolidated balance sheets. Prior to our adoption of ASU 2017-01 effective January 1, 2017, acquisition costs for transactions accounted for as business combinations were expensed in the period in which they were incurred and were reflected in other expenses in the accompanying condensed consolidated statements of operations. |
Earnings Per Share | Earnings per Share We use the two-class method to compute basic and diluted earnings (loss) per common share (“EPS”) because our restricted stock units and restricted stock awards (see Share-Based Compensation Expense below) are participating securities as defined by GAAP. We compute basic EPS by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding for the period, adjusted to exclude nonvested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of nonvested RSUs and RSAs except when doing so would be anti-dilutive. Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure upon which to compute historical EPS. Accordingly, EPS has not been presented for historical periods prior to the IPO. |
Derivatives | Derivatives We enter into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes. We do not enter into Hedging Derivatives for trading or other speculative purposes, and all of our Hedging Derivatives are carried at fair value on our condensed consolidated balance sheets. Designated hedges are derivatives that meet the criteria for hedge accounting and that we have elected to designate as hedges. Non-designated hedges are derivatives that do not meet the criteria for hedge accounting or that we have not elected to designate as hedges. Pursuant to the terms of certain of our mortgage loans, we are required to maintain interest rate caps. We have elected not to designate these interest cap agreements for hedge accounting (collectively, the “Non-Designated Hedges”). We enter into interest rate swap agreements to hedge the risk arising from changes in our interest payments on variable-rate debt due to changes in the one-month London Interbank Offered Rate (“LIBOR”). In connection with the Pre-IPO Transactions, as of January 31, 2017, we have elected to account for our interest rate swap agreements as effective cash flow hedges (collectively, the “Designated Hedges”). We assess the effectiveness of these interest rate swap cash flow hedging relationships on an ongoing basis. The effect of these interest rate cap agreements and interest rate swap agreements is to reduce the variability of interest payments due to changes in LIBOR. The fair value of Hedging Derivatives that are in an asset position are included in other assets and those in a liability position are included in other liabilities on our condensed consolidated balance sheets. For Non-Designated Hedges, the related changes in fair value are reflected within interest expense in the condensed consolidated statements of operations. For Designated Hedges, the effective portion of the related changes in fair value is reported as a component of other comprehensive income (loss) on our condensed consolidated balance sheets and reclassified into earnings as interest expense in our condensed consolidated statements of operations when the hedged transactions affect earnings; the ineffective portion of the changes in fair value is reflected directly within interest expense in the condensed consolidated statements of operations. See Note 7 for further discussion of derivative financial instruments. |
Share-Based Compensation Expense | Share-Based Compensation Expense Prior to the IPO, we recognized share-based compensation expense for incentive compensation units granted by the Invitation Homes Partnerships (the “Class B Units”). In connection with and subsequent to the IPO, we have issued restricted stock units (“RSUs”) that settle in shares of common stock and restricted shares of common stock (“RSAs”) for which share-based compensation expense is recognized. We recognized share-based compensation expense for the Class B Units based on the estimated fair value of the Class B Units and vesting conditions of the related incentive unit agreements. Since the Class B Units granted by IH1 were granted to employees of the Manager, a wholly owned subsidiary of IH1, the related share-based compensation expense was based on the grant-date fair value of the units and recognized in expense over the service period. Because units in IH2, IH3, IH4, IH5, and IH6 were granted to non-employees of those respective partnerships, fair value was re-measured for nonvested units at the end of each reporting period. The fair value of the Class B Units was determined based on a valuation model that took into account discounted cash flows and a market approach based on comparable companies and transactions. We recognize share-based compensation expense for the RSUs and RSAs based on their grant-date fair value, net of expected forfeitures, over the service period from the grant date to vest date for each tranche or when any applicable performance conditions are met in accordance with the related RSU and RSA agreements. The grant-date fair value of RSUs and RSAs is generally based on the closing price of our common stock on the grant date. Additional compensation expense is recognized if modifications to existing incentive compensation unit, RSU, or RSA agreements result in an increase in the post-modification fair value of the units that exceeds their pre-modification fair value. Share-based compensation expense is presented as a component of general and administrative expense and property management expense in our condensed consolidated statements of operations. See Note 10 for further discussion of share-based compensation expense. |
Income Taxes | Income Taxes As a result of the Pre-IPO Transactions more fully described in Note 1, the Invitation Homes Partnerships transferred all assets, liabilities, and operations to Invitation Homes Inc. through certain mergers and related transactions, including the IH2 Property Holdings Merger. IH2 Property Holdings Inc. had previously elected to qualify as a Real Estate Investment Trust “REIT” for United States federal income tax purposes commencing with its taxable year ended December 31, 2013. Effective upon consummation of the IH2 Property Holdings Merger, Invitation Homes Inc. became subject to such REIT election. We intend to continue to operate as a REIT, and our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Internal Revenue Code of 1986, as amended (the “Code”), which are related to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If we qualify for taxation as a REIT, we will generally not be subject to United States federal corporate income tax on our taxable income that is currently distributed to stockholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. If we fail to qualify as a REIT in any taxable year, we will be subject to federal taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for subsequent taxable years. Even if we qualify as a REIT, we may be subject to United States federal income and excise taxes in various situations, such as on our undistributed income. We also will be required to pay a 100% tax on any net income on non-arm’s length transactions between us and a TRS, defined below, and on any net income from sales of assets that were held for sale to customers in the ordinary course. In addition, we could also be subject to the alternative minimum tax on items of tax preference. State and local tax laws may not conform to the United States federal income tax treatment, and we may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business. Any taxes imposed on us reduce our operating cash flow and net income. As part of the formation of Invitation Homes Inc., each of the Invitation Homes Partnerships (other than IH2) transferred assets into Invitation Homes Inc. solely in exchange for shares of common stock. Certain of the assets contributed contained built-in gains. Prior to the Pre-IPO Transactions, the contributing partnerships had indirect C corporation partners to which a portion of the built-in gain would be allocated. As a result, if we dispose of any such assets during the five-year period following the date the REIT acquired such assets, we will be subject to the regulations under Section 337(d) of the Code. In general terms, such regulations subject the REIT to the maximum corporate level tax rate on the lesser of (i) such built-in gains and (ii) the gain recognized by the REIT upon a taxable disposition of the contributed assets. We may, however, choose not to sell such assets during such five-year period or to sell them in a non-taxable transaction. As such, the potential taxes associated with these built-in gains are not estimable. Certain of our operations or a portion thereof, are conducted through taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a subsidiary C-corporation that has not elected REIT status and as such is subject to United States federal and state corporate income tax. We use TRS entities to facilitate our ability to perform non-real estate related activities and/or perform non-customary services for residents that cannot be offered directly by a REIT. For our TRS entities, deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for United States federal income tax purposes and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. We reduce deferred tax assets by recording a valuation allowance when we determine, based on available evidence, that it is more likely than not that the assets will not be realized. We recognize the tax consequences associated with intercompany transfers between the REIT and TRS entities when the related assets affect our GAAP net income or loss, generally through depreciation, impairment losses, or sales to third-party entities. Tax benefits associated with uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. We file income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. Our filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years varying based upon the date of incorporation of the specific entity. The years open to examination range from 2013 to present. |
Investments in Single-Family 24
Investments in Single-Family Residential Properties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Properties Carrying Amount | The following table sets forth the net carrying amount associated with our properties by component: March 31, December 31, Land $ 2,701,437 $ 2,703,388 Single-family residential property 6,818,318 6,829,579 Capital improvements 228,643 229,890 Equipment 31,717 31,988 Total gross investments in the properties 9,780,115 9,794,845 Less: accumulated depreciation (853,399 ) (792,330 ) Investments in single-family residential properties, net $ 8,926,716 $ 9,002,515 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | As of March 31, 2017 and December 31, 2016 , the balances in our restricted cash accounts are as set forth in the table below. At December 31, 2016 , no amounts were funded to the completion, renovation, leasing commission, debt service, termination fee, and nonconforming property reserve accounts as the conditions specified in the credit facility agreements that require such funding did not exist, and none are required at March 31, 2017 as the credit facilities had been repaid in full. March 31, December 31, Resident security deposits $ 91,452 $ 86,239 Collections 18,134 42,767 Property taxes 24,995 52,256 Insurance premium and deductible — 4,432 Standing and capital expenditure reserves 6,115 24,409 Special reserves — 34 Eligibility reserves 254 9,274 Letters of credit 3,219 2,681 Total $ 144,169 $ 222,092 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | At March 31, 2017 and December 31, 2016 , the balances in other assets, net are as follows: March 31, December 31, Investments in debt securities, net $ 209,386 $ 209,337 Held for sale assets (1) 37,142 45,062 Prepaid expenses 33,811 21,883 Deferred leasing costs, net 7,415 7,710 Rent and other receivables, net 11,781 11,604 Deferred financing costs, net 9,242 — Interest rate swap hedges (see Note 7) 5,907 — Corporate fixed assets, net 5,612 6,247 Other 4,530 7,782 Total $ 324,826 $ 309,625 (1) As of March 31, 2017 and December 31, 2016 (unaudited), 358 and 391 properties, respectively, were classified as held for sale (see Note 15 ). |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following table lists the gross carrying values of the single-family residential properties, including held for sale properties, pledged as collateral for the loans as of March 31, 2017 and December 31, 2016 : Number of (1) March 31, December 31, IH1 2013-1 — $ — $ 533,005 IH1 2014-1 6,268 1,124,008 1,124,069 IH1 2014-2 3,634 785,486 785,459 IH1 2014-3 3,950 847,960 850,056 IH2 2015-1 3,021 594,600 594,155 IH2 2015-2 3,520 744,605 744,070 IH2 2015-3 7,162 1,380,734 1,382,683 Total 27,555 $ 5,477,393 $ 6,013,497 (1) The loans are secured by first priority mortgages on portfolios of single-family residential properties owned by S1 Borrower, S2 Borrower, S3 Borrower, S4 Borrower, S5 Borrower, S6 Borrower, and S7 Borrower. The numbers of homes noted above are as of March 31, 2017 . As of December 31, 2016 , a total of 30,900 homes (unaudited) were secured by the above-mentioned mortgage loans. The following table sets forth a summary of the mortgage loan indebtedness as of March 31, 2017 and December 31, 2016 : Outstanding Principal Balance (3) Maturity Date (1) Interest Rate (2) Range of Spreads March 31, (4) December 31, IH1 2013-1 N/A N/A 115-365 bps $ — $ 462,431 IH1 2014-1 (5) June 9, 2017 2.83% 100-375 bps 420,944 978,231 IH1 2014-2, net September 9, 2017 2.88% 110-400 bps 706,957 710,664 IH1 2014-3, net (6) December 9, 2017 3.30% 120-500 bps 761,041 766,753 IH2 2015-1, net (7) March 9, 2018 3.34% 145-430 bps 531,373 531,318 IH2 2015-2 (8) June 9, 2017 2.93% 135-370 bps 630,283 630,283 IH2 2015-3 (9) August 9, 2017 3.15% 130-475 bps 1,182,980 1,184,314 Total Securitizations 4,233,578 5,263,994 Less deferred financing costs, net (5,053 ) (9,256 ) Total $ 4,228,525 $ 5,254,738 (1) Each mortgage loan’s initial maturity term is two years, individually subject to three , one - year extension options at the borrower’s discretion (provided that there is no continuing event of default under the loan agreement and the borrower obtains a replacement interest rate cap agreement in a form reasonably acceptable to the lender). Our IH1 2014-1, IH1 2014-2, IH1 2014-3, and IH2 2015-1 mortgage loans have exercised the first extension options. The maturity dates above are reflective of all extensions that have been exercised. (2) Interest rates are based on a weighted average spread to LIBOR; as of March 31, 2017 , LIBOR was 0.98% . (3) Outstanding Principal Balance is net of discounts and does not include capitalized deferred financing costs, net. (4) From April 1, 2017 to May 5, 2017 , we made prepayments of $2,865 on our mortgage loans related to the disposition of properties. (5) On April 28, 2017, the outstanding balance of IH1 2014-1 was repaid in full (see Note 15 ). (6) On May 9, 2017, we made a voluntary prepayment of $510,000 (see Note 15 ). (7) N et of unamortized discount of $0 and $55 as of March 31, 2017 and December 31, 2016 , respectively. (8) On March 9, 2017, we submitted a notification to request an extension of the maturity of the IH2 2015-2 mortgage loan from June 9, 2017 to June 9, 2018 upon approval. (9) On May 9, 2017, we submitted a notification to request an extension of the maturity of the IH2 2015-3 mortgage loan from August 9, 2017 to August 9, 2018 upon approval (see Note 15). |
Schedule of line of credit facility | The following table sets forth a summary of the outstanding principal amounts under such loans as of March 31, 2017 : Maturity Date Interest Rate (1) March 31, Term loan facility February 6, 2022 2.78% $ 1,500,000 Revolving facility February 6, 2021 N/A — Total 1,500,000 Less deferred financing costs, net (14,134 ) Total $ 1,485,866 (1) Interest rate for the Term Loan Facility is based on LIBOR plus an applicable margin of 1.80% ; as of March 31, 2017 , LIBOR was 0.98% . All of the then-existing credit facilities were paid in full on February 6, 2017 in connection with the closing of our IPO. The following table sets forth a summary of the outstanding principal amounts of these credit facilities as of March 31, 2017 and December 31, 2016 : Outstanding Principal Balance (1) Credit Facility Origination Range of Spreads March 31, December 31, IH1 2015 April 3, 2015 325 bps $ — $ 85,492 IH2 2015 September 29, 2015 275 bps — 43,859 IH3 2013 December 19, 2013 300-425 bps — 932,583 IH4 2014 May 5, 2014 300-425 bps — 529,866 IH5 2014 December 5, 2014 275-400 bps — 564,348 IH6 2016 April 13, 2016 250-375 bps — 165,437 Total — 2,321,585 Less deferred financing costs, net — (6,044 ) Total $ — $ 2,315,541 (1) Outstanding Principal Balance does not include capitalized deferred financing costs, net. |
Schedule of maturities of long-term debt | Future maturities of these mortgage loans as of March 31, 2017 are set forth in the table below: Year Principal (1) 2017 $ 3,702,205 2018 531,373 Total payments $ 4,233,578 (1) Each mortgage loan is subject to three one -year extension options at the borrower's discretion, of which the IH1 2014-1, IH1 2014-2, IH1 2014-3 and IH2 2015-1 mortgage loans have exercised the first extension options. Future maturities of the New Credit Facility as of March 31, 2017 are set forth in the table below: Year Principal 2022 $ 1,500,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of interest rate swap instruments | The table below summarizes our interest rate swap instruments as of March 31, 2017 : Agreement Date Forward Maturity Date Strike Rate Index Notional Amount December 21, 2016 February 28, 2017 January 31, 2022 1.97% One-month LIBOR $ 750,000 December 21, 2016 February 28, 2017 January 31, 2022 1.97% One-month LIBOR 750,000 January 12, 2017 February 28, 2017 August 7, 2020 1.59% One-month LIBOR 1,100,000 January 13, 2017 February 28, 2017 June 9, 2020 1.63% One-month LIBOR 595,000 January 20, 2017 February 28, 2017 March 9, 2020 1.60% One-month LIBOR 325,000 |
Summary of derivative financial instruments, fair value and location in condensed consolidated balance sheets | The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016 : Asset Derivatives Liability Derivatives Fair Value at: Fair Value at: Balance March 31, December 31, Balance March 31, December 31, Derivatives designated as Interest rate swaps Other $ 5,907 $ — Other $ 4,775 $ — Derivatives not designated as Interest rate swaps Other — — Other — 8,683 Interest rate caps Other 11 29 Other — — Total $ 5,918 $ 29 $ 4,775 $ 8,683 |
Summary of effect of derivative financial instruments on condensed consolidated statements of operations - derivative instruments not-designated as hedging instruments | The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months ended March 31, 2017 and 2016 : Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Location of (Gain) Loss Reclassified from Accumulated OCI into Net Loss (Effective Portion) Amount of (Gain) Loss Reclassified from Accumulated OCI into Net Loss (Effective Portion) Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) For the Three Months Ended For the Three Months Ended For the Three Months Ended 2017 2016 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationships Interest rate swaps $ 10,561 $ — Interest $ (2,711 ) $ — Interest $ 1 $ — Total $ 10,561 $ — $ (2,711 ) $ — $ 1 $ — Location of Gain (Loss) Recognized in Net Loss on Derivative Amount of Gain (Loss) Recognized in Net Loss on Derivative For the Three Months Ended 2017 2016 Derivatives Not Designated as Hedging Instruments Interest rate swaps Interest expense (3,674 ) — Interest rate caps Interest expense $ (78 ) $ — Total $ (3,752 ) $ — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation, performance shares award outstanding activity | The following table summarizes the activity related to the Class B Units for the three months ended March 31, 2017: Class B Units Employee Non-employee Total Class B Units Number of Units Weighted Average Fair Value Number of Units Weighted Average Fair Value Number of Units Weighted Average Fair Value Balance, December 31, 2016 9,915 $ 4.2 39,638 $ 2.5 49,553 $ 2.9 Granted 85 14.0 9,753 — 9,838 0.1 Converted to RSAs (245 ) (3.4 ) (485 ) (0.8 ) (730 ) (1.7 ) Canceled (555 ) (8.2 ) (17,114 ) (0.4 ) (17,669 ) (0.6 ) Converted to Units of affiliated entities (9,200 ) (4.0 ) (31,792 ) (2.9 ) (40,992 ) (3.2 ) Balance, March 31, 2017 — $ — — $ — — $ — |
Schedule of share-based compensation, restricted stock and restricted stock units | The following tables summarize the status of non-vested RSUs and RSAs as of March 31, 2017 and changes during the period from January 31, 2017 through March 31, 2017: RSUs RSAs Total Share-Based Awards Number Weighted Average Number Weighted Average Number Weighted Average Balance, January 1, 2017 — $ — — $ — — $ — Granted 3,290,126 20.00 62,529 15.50 3,352,655 19.92 Vested (1) (1,405,070 ) (20.00 ) (51,039 ) (15.88 ) (1,456,109 ) (19.86 ) Forfeited (51,252 ) (20.00 ) — — (51,252 ) (20.00 ) Balance, March 31, 2017 1,833,804 $ 20.00 11,490 $ 13.83 1,845,294 $ 19.96 (1) All vested RSAs and RSUs are included in basic EPS for the period during which they are outstanding. However, the vested RSUs will not settle with the individual awardees until July 30, 2017, and therefore are not included in legally outstanding shares of common stock as of March 31, 2017. |
Schedule of compensation cost for share-baed payment arrangements, allocation of share-based compensation costs by plan | During the three months ended March 31, 2017 and 2016, we recognized $44,244 and $4,206 respectively, of share-based compensation expense, comprised of the following: Share-Based Compensation Expense for the Three Months Ended March 31, 2017 2016 General and Administrative Property Management Expense General and Administrative Property Management Expense Unrecognized Expense at Class B Units $ 11,998 $ 3 $ 4,051 $ 155 $ — RSUs 28,463 4,020 — — 32,294 RSAs (190 ) (50 ) — — 28 Total $ 40,271 $ 3,973 $ 4,051 $ 155 $ 32,322 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and fair values of financial instruments | The following table displays the carrying values and fair values of financial instruments as of March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Carrying Value Fair Carrying Value Fair Assets carried at historical cost on the consolidated balance sheets Investments in debt securities Level 2 $ 209,386 $ 209,744 $ 209,337 $ 209,390 Liabilities carried at historical cost on the consolidated balance sheets Mortgage loans (1) Level 2 $ 4,233,578 $ 4,245,640 $ 5,263,994 $ 5,265,180 Term loan facility (2) Level 3 1,500,000 1,501,639 — — Credit facilities (3) Level 3 — — 2,321,585 2,329,551 (1) The carrying values of the mortgage loans are shown net of discount and exclude $5,053 and $9,256 of deferred financing costs as of March 31, 2017 and December 31, 2016 , respectively. (2) The carrying value of the term loan facility excludes $14,134 of deferred financing costs as of March 31, 2017 . (3) The carrying values of the credit facilities exclude $6,044 of deferred financing costs as of December 31, 2016 . |
Schedule of impaired assets, measured at fair value on a nonrecurring basis | The assets for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below: Three Months Ended March 31, 2017 2016 Investments in single-family residential properties, net held for use (Level 3) Pre-impairment amount $ 496 $ — Total impairments (267 ) — Fair value $ 229 $ — Three Months Ended March 31, 2017 2016 Investments in single-family residential properties, net held for sale (Level 3) Pre-impairment amount $ 7,242 $ — Total impairments (770 ) — Fair value $ 6,472 $ — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Share Calculation | Basic and diluted EPS are calculated as follows: (in thousands, except share and per share data) February 1, 2017 through Numerator: Net loss available to common shareholders $ (25,512 ) Denominator: Basic and diluted weighted average common shares outstanding 311,651,082 Net loss per common share — basic and diluted $ (0.08 ) |
Organization and Formation (Det
Organization and Formation (Details) - $ / shares | Feb. 06, 2017 | Mar. 31, 2017 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Sale of common stock (in shares) | 310,376,634 | |
Common stock, shares authorized (in shares) | 9,000,000,000 | |
Preferred shares, shares authorized (in shares) | 900,000,000 | |
Preferred shares, par value (in dollars per share) | $ 0.01 | |
Common stock shares, par value (in dollars per share) | $ 0.01 | |
IPO | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Sale of common stock (in shares) | 88,550,000 | |
Sale of common stock, price per share (in dollars per share) | $ 20 | |
Pre-IPO Owner Issuances | ||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||
Sale of common stock (in shares) | 221,826,634 |
Investments in Single-Family 33
Investments in Single-Family Residential Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Real Estate [Abstract] | ||
Land | $ 2,701,437 | $ 2,703,388 |
Single-family residential property | 6,818,318 | 6,829,579 |
Capital improvements | 228,643 | 229,890 |
Equipment | 31,717 | 31,988 |
Investments in single-family residential properties, net | 9,780,115 | 9,794,845 |
Less: accumulated depreciation | (853,399) | (792,330) |
Investments in single-family residential properties, net | $ 8,926,716 | $ 9,002,515 |
Investments in Single-Family 34
Investments in Single-Family Residential Properties - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized acquisition costs, net | $ 121,727 | $ 122,009 | |
Accumulated capitalized interest costs | 61,989 | 62,169 | |
Capitalized property taxes, net | 25,957 | 26,050 | |
Capitalized insurance, net | 4,739 | 4,764 | |
Capitalized HOA Fees, net | 2,884 | $ 2,890 | |
Depreciation | 66,653 | $ 64,409 | |
Depreciation and amortization | 67,577 | 65,702 | |
Impairment and other | 1,037 | 0 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 924 | $ 1,293 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 144,169 | $ 222,092 |
Resident security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 91,452 | 86,239 |
Collections | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 18,134 | 42,767 |
Property taxes | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 24,995 | 52,256 |
Insurance premium and deductible | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 0 | 4,432 |
Standing and capital expenditure reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 6,115 | 24,409 |
Special reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 0 | 34 |
Eligibility reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 254 | 9,274 |
Letters of credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 3,219 | $ 2,681 |
Other Assets - (Details)
Other Assets - (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Investments in debt securities, net | $ 209,386 | $ 209,337 |
Held for sale assets | 37,142 | 45,062 |
Prepaid expenses | 33,811 | 21,883 |
Deferred leasing costs, net | 7,415 | 7,710 |
Rent and other receivables, net | 11,781 | 11,604 |
Deferred financing costs, net | 9,242 | 0 |
Interest rate swap hedges | 5,907 | 0 |
Corporate fixed assets, net | 5,612 | 6,247 |
Other | 4,530 | 7,782 |
Total Other Assets | $ 324,826 | $ 309,625 |
- (Narrative) (Details)
- (Narrative) (Details) | 3 Months Ended | |||
Mar. 31, 2017USD ($)property | Mar. 31, 2016USD ($) | Mar. 29, 2017USD ($) | Dec. 31, 2016USD ($)property | |
Schedule of Investments [Line Items] | ||||
Held-to-maturity securities, unrecognized holding loss | $ 0 | $ 0 | ||
Number of real estate properties classified as held-for-sale | property | 358 | 391 | ||
Inventory, held-for-sale, properties | property | 219 | |||
Investments in debt securities, net | $ 209,386,000 | $ 209,337,000 | ||
Held-to-maturity securities, unrecognized holding gain | 0 | 0 | ||
Other than temporary impairment recognized in other comprehensive income | 0 | $ 0 | ||
Real estate held-for-sale | 18,520,000 | |||
Real estate held-for-sale, sales price | $ 21,778,000 | |||
Allowance for doubtful accounts receivable | 1,198,000 | 1,183,000 | ||
Debt issuance costs, line of credit arrangements incurred | 9,634,000 | |||
Residential Mortgage Backed Securities | Class G Certificates | ||||
Schedule of Investments [Line Items] | ||||
Investments in debt securities, net | $ 193,045,000 | |||
Marketable securities, expected maturity term | 12 months | |||
Residential Mortgage Backed Securities | Class F Certificates | ||||
Schedule of Investments [Line Items] | ||||
Investments in debt securities, net | 16,423,000 | |||
Marketable securities, unamortized discount | $ 82,000 | $ 131,000 | ||
Marketable securities, expected maturity term | 3 months | |||
Minimum | ||||
Schedule of Investments [Line Items] | ||||
Lessor leasing arrangements, operating leases, term of contract | 12 months |
Debt Narrative (Details)
Debt Narrative (Details) | Mar. 31, 2017security |
Debt Disclosure [Abstract] | |
Number of securitizations | 7 |
Debt Mortgage Loan Indebtedness
Debt Mortgage Loan Indebtedness (Details) $ in Thousands | May 09, 2017USD ($) | Apr. 28, 2017USD ($) | Mar. 09, 2017USD ($) | Feb. 06, 2017USD ($) | May 05, 2017USD ($) | Mar. 31, 2017USD ($)extension | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Nov. 30, 2014USD ($) | Aug. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||
Less deferred financing costs, net | $ (9,242) | $ 0 | |||||||||
Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 2,865 | ||||||||||
Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | 4,233,578 | 5,263,994 | |||||||||
Less deferred financing costs, net | (5,053) | (9,256) | |||||||||
Long-term debt | $ 4,228,525 | 5,254,738 | |||||||||
Debt instrument, term | 2 years | ||||||||||
Debt instrument, number of extensions | extension | 3 | ||||||||||
Debt instrument, extended term | 1 year | ||||||||||
Repayments of long-term debt | $ 1,030,471 | $ 29,598 | |||||||||
Secured Debt | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 2,865 | ||||||||||
IH1 2013-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term Debt | $ 0 | 462,431 | |||||||||
IH1 2014-1 | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 420,000 | ||||||||||
IH1 2014-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 2.83% | ||||||||||
Long-term Debt | $ 420,944 | 978,231 | |||||||||
Repayments of long-term debt | $ 260,000 | $ 291,500 | |||||||||
IH1 2014-2 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 2.88% | ||||||||||
Long-term Debt | $ 706,957 | 710,664 | |||||||||
Debt instrument, unamortized discount | $ 3,970 | ||||||||||
IH1 2014-3 | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 510,000 | ||||||||||
IH1 2014-3 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 3.30% | ||||||||||
Long-term Debt | $ 761,041 | 766,753 | |||||||||
Debt instrument, unamortized discount | $ 7,235 | ||||||||||
IH1 2014-3 | Secured Debt | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of long-term debt | $ 510,000 | ||||||||||
IH2 2015-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 3.34% | ||||||||||
Long-term Debt | $ 531,373 | 531,318 | |||||||||
Debt instrument, unamortized discount | $ 0 | 55 | $ 622 | ||||||||
IH2 2015-2 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 2.93% | ||||||||||
Long-term Debt | $ 630,283 | 630,283 | |||||||||
IH2 2015-3 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 3.15% | ||||||||||
Long-term Debt | $ 1,182,980 | $ 1,184,314 | |||||||||
London Interbank Offered Rate (LIBOR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, variable rate | 0.98% | ||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2013-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 1.15% | ||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2014-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 1.00% | ||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2014-2 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 1.10% | ||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2014-3 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 1.20% | ||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | IH2 2015-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 1.45% | ||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | IH2 2015-2 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 1.35% | ||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | IH2 2015-3 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 1.30% | ||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2013-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 3.65% | ||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2014-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 3.75% | ||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2014-2 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 4.00% | ||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2014-3 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 5.00% | ||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | IH2 2015-1 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 4.30% | ||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | IH2 2015-2 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 3.70% | ||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | IH2 2015-3 | Secured Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread | 4.75% |
Debt Securitization Transaction
Debt Securitization Transactions (Details) | May 09, 2017USD ($) | Apr. 28, 2017USD ($) | Mar. 09, 2017USD ($) | Feb. 06, 2017USD ($) | May 05, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2015USD ($)loan | Apr. 30, 2015USD ($)loan | Jan. 31, 2015USD ($)loan | Nov. 30, 2014USD ($)loan | Aug. 31, 2014USD ($)loan | May 30, 2014USD ($)loan | Nov. 30, 2013USD ($)loan |
Subsequent Event | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 2,865,000 | ||||||||||||||
Subsequent Event | IH1 2014-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 420,000,000 | ||||||||||||||
Subsequent Event | IH1 2014-3 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 510,000,000 | ||||||||||||||
Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 1,030,471,000 | $ 29,598,000 | |||||||||||||
Secured Debt | IH1 2013-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, number of loans | loan | 6 | ||||||||||||||
Debt instrument, face amount | $ 479,137,000 | ||||||||||||||
Debt instrument, number of loans sold at par | loan | 6 | ||||||||||||||
Secured Debt | IH1 2014-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, number of loans | loan | 6 | ||||||||||||||
Debt instrument, face amount | $ 993,738,000 | ||||||||||||||
Debt instrument, number of loans sold at par | loan | 6 | ||||||||||||||
Repayments of long-term debt | $ 260,000,000 | $ 291,500,000 | |||||||||||||
Secured Debt | IH1 2014-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 719,935,000 | ||||||||||||||
Debt instrument, number of loans sold at par | loan | 7 | ||||||||||||||
Debt instrument, number of loans bearing variable interest rate | loan | 6 | ||||||||||||||
Debt instrument, number of loans bearing fixed interest rate | loan | 1 | ||||||||||||||
Debt instrument, unamortized discount | $ 3,970,000 | ||||||||||||||
Secured Debt | IH1 2014-3 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 769,322,000 | ||||||||||||||
Debt instrument, number of loans sold at par | loan | 7 | ||||||||||||||
Debt instrument, number of loans bearing variable interest rate | loan | 6 | ||||||||||||||
Debt instrument, number of loans bearing fixed interest rate | loan | 1 | ||||||||||||||
Debt instrument, unamortized discount | $ 7,235,000 | ||||||||||||||
Secured Debt | IH2 2015-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, number of loans | loan | 7 | ||||||||||||||
Debt instrument, face amount | $ 540,854,000 | ||||||||||||||
Debt instrument, number of loans sold at par | loan | 6 | ||||||||||||||
Debt instrument, unamortized discount | $ 0 | $ 55,000 | $ 622,000 | ||||||||||||
Secured Debt | IH2 2015-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, number of loans | loan | 7 | ||||||||||||||
Debt instrument, face amount | $ 636,686,000 | ||||||||||||||
Secured Debt | IH2 2015-3 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, number of loans | loan | 7 | ||||||||||||||
Debt instrument, face amount | $ 1,193,950,000 | ||||||||||||||
Secured Debt | Subsequent Event | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 2,865,000 | ||||||||||||||
Secured Debt | Subsequent Event | IH1 2014-3 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 510,000,000 | ||||||||||||||
Secured Debt | Class G Certificates | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, loan principal as a percentage of mortgage pool | 5.00% | ||||||||||||||
Debt instrument, interest rate, stated percentage | 0.0005% |
Debt Prepayments (Details)
Debt Prepayments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 1,030,471 | $ 29,598 |
Debt Collateral (Details)
Debt Collateral (Details) $ in Thousands | Mar. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property |
Debt Instrument [Line Items] | ||
Real estate investment property, net | $ 8,926,716 | $ 9,002,515 |
Residential Real Estate | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 27,555 | 30,900 |
Real estate investment property, net | $ 5,477,393 | $ 6,013,497 |
Residential Real Estate | IH1 2013-1 | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 0 | |
Real estate investment property, net | $ 0 | 533,005 |
Residential Real Estate | IH1 2014-1 | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 6,268 | |
Real estate investment property, net | $ 1,124,008 | 1,124,069 |
Residential Real Estate | IH1 2014-2 | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 3,634 | |
Real estate investment property, net | $ 785,486 | 785,459 |
Residential Real Estate | IH1 2014-3 | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 3,950 | |
Real estate investment property, net | $ 847,960 | 850,056 |
Residential Real Estate | IH2 2015-1 | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 3,021 | |
Real estate investment property, net | $ 594,600 | 594,155 |
Residential Real Estate | IH2 2015-2 | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 3,520 | |
Real estate investment property, net | $ 744,605 | 744,070 |
Residential Real Estate | IH2 2015-3 | ||
Debt Instrument [Line Items] | ||
Number of real estate properties | property | 7,162 | |
Real estate investment property, net | $ 1,380,734 | $ 1,382,683 |
Debt Mortgage Loans Maturity Sc
Debt Mortgage Loans Maturity Schedule (Details) - Secured Debt $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)extension | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument, number of extensions | extension | 3 | |
Debt instrument, extended term | 1 year | |
Maturities of Long-term Debt [Abstract] | ||
2,017 | $ 3,702,205 | |
2,018 | 531,373 | |
Long-term Debt | $ 4,233,578 | $ 5,263,994 |
Debt New Credit Facility (Detai
Debt New Credit Facility (Details) | Feb. 06, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 2,500,000,000 | ||
Line of credit facility, additional borrowing capacity | 1,500,000,000 | ||
Deferred financing costs, net | $ (9,242,000) | $ 0 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 1,000,000,000 | ||
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Long-term line of credit | 1,500,000,000 | ||
Long-term debt | $ 1,485,866,000 | ||
Ratio of indebtedness to net capital | 8 | ||
Long-term debt maturities, repayments of principal | $ 1,500,000,000 | ||
Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, number of maturity date extensions | 1 year | ||
Long-term line of credit | 0 | ||
Line of Credit | Unsecured Debt | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, current borrowing capacity | $ 1,500,000,000 | ||
Long-term line of credit | $ 1,500,000,000 | ||
Line of credit facility, interest rate at period end | 2.78% | ||
Unsecured Debt | |||
Line of Credit Facility [Line Items] | |||
Deferred financing costs, net | $ (14,134,000) | ||
London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, variable rate | 0.98% | ||
London Interbank Offered Rate (LIBOR) | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.00% | ||
London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.80% | ||
Federal Funds Effective Swap Rate | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 0.50% | ||
Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.35% | ||
Line of credit facility, facility fee percentage | 0.125% | ||
Minimum | London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.75% | ||
Minimum | London Interbank Offered Rate (LIBOR) | Line of Credit | Unsecured Debt | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.70% | ||
Minimum | Base Rate | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 0.75% | ||
Minimum | Base Rate | Line of Credit | Unsecured Debt | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 0.70% | ||
Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | ||
Line of credit facility, facility fee percentage | 0.30% | ||
Maximum | London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 2.30% | ||
Maximum | London Interbank Offered Rate (LIBOR) | Line of Credit | Unsecured Debt | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 2.30% | ||
Maximum | Base Rate | Line of Credit | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.30% | ||
Maximum | Base Rate | Line of Credit | Unsecured Debt | |||
Line of Credit Facility [Line Items] | |||
Basis spread | 1.30% |
Debt Credit Facilities (Details
Debt Credit Facilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Less deferred financing costs, net | $ 0 | $ (9,242) |
Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | 2,321,585 | |
Less deferred financing costs, net | (6,044) | |
Long-term debt | 2,315,541 | |
IH1 2015 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | 85,492 | |
IH2 2015 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | 43,859 | |
IH3 2013 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | 932,583 | |
IH4 2014 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | 529,866 | |
IH5 2014 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | 564,348 | |
IH6 2016 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Long-term line of credit | $ 165,437 | |
London Interbank Offered Rate (LIBOR) | IH1 2015 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 3.25% | |
London Interbank Offered Rate (LIBOR) | IH2 2015 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.75% | |
London Interbank Offered Rate (LIBOR) | Minimum | IH3 2013 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 3.00% | |
London Interbank Offered Rate (LIBOR) | Minimum | IH4 2014 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 3.00% | |
London Interbank Offered Rate (LIBOR) | Minimum | IH5 2014 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.75% | |
London Interbank Offered Rate (LIBOR) | Minimum | IH6 2016 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.50% | |
London Interbank Offered Rate (LIBOR) | Maximum | IH3 2013 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 4.25% | |
London Interbank Offered Rate (LIBOR) | Maximum | IH4 2014 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 4.25% | |
London Interbank Offered Rate (LIBOR) | Maximum | IH5 2014 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 4.00% | |
London Interbank Offered Rate (LIBOR) | Maximum | IH6 2016 | Loans Payable | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 3.75% |
Derivative Instruments Interest
Derivative Instruments Interest Rate Swap Instruments (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($)agreement | |
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) | $ 1,000 | $ 0 |
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | $ 16,003,000 | |
Number of interest rate derivatives held | agreement | 0 | |
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 1 | ||
Derivative [Line Items] | ||
Strike Rate | 1.97% | |
Notional Amount | $ 750,000,000 | |
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 2 | ||
Derivative [Line Items] | ||
Strike Rate | 1.97% | |
Notional Amount | $ 750,000,000 | |
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 3 | ||
Derivative [Line Items] | ||
Strike Rate | 1.59% | |
Notional Amount | $ 1,100,000,000 | |
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 4 | ||
Derivative [Line Items] | ||
Strike Rate | 1.63% | |
Notional Amount | $ 595,000,000 | |
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 5 | ||
Derivative [Line Items] | ||
Strike Rate | 1.60% | |
Notional Amount | $ 325,000,000 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, net liability position, fair value | $ 5,172,000 |
Derivative Instruments Non-Desi
Derivative Instruments Non-Designated Hedges (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Derivative [Line Items] | ||
Gain (loss) on fair value of derivative instruments | $ (3,752) | $ 0 |
Not Designated as Hedging Instrument | Maximum | ||
Derivative [Line Items] | ||
Cap interest rate | 3.82% | |
Interest Rate Cap | ||
Derivative [Line Items] | ||
Gain (loss) on fair value of derivative instruments | $ (78) | 0 |
Interest Rate Cap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Debt service coverage ratio | 1.2 | |
Interest Rate Cap | Not Designated as Hedging Instrument | Minimum | ||
Derivative [Line Items] | ||
Cap interest rate | 2.07% | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Gain (loss) on fair value of derivative instruments | $ (3,674) | $ 0 |
Derivative Instruments Fair Val
Derivative Instruments Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | $ 5,918 | $ 29 |
Derivative liability, fair value, gross liability | 4,775 | 8,683 |
Interest Rate Swap | Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 5,907 | 0 |
Interest Rate Swap | Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 4,775 | 0 |
Interest Rate Swap | Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Interest Rate Swap | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 0 | 8,683 |
Interest Rate Cap | Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 11 | 29 |
Interest Rate Cap | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | $ 0 | $ 0 |
Derivative Instruments Effect o
Derivative Instruments Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) on fair value of derivative instruments | $ (3,752) | $ 0 |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 10,561 | 0 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Net Loss (Effective Portion) | (2,711) | 0 |
Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) | 1 | 0 |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) on fair value of derivative instruments | (3,674) | 0 |
Interest Rate Cap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) on fair value of derivative instruments | (78) | 0 |
Cash Flow Hedging | Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 10,561 | 0 |
Amount of (Gain) Loss Reclassified from Accumulated OCI into Net Loss (Effective Portion) | (2,711) | 0 |
Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing) | $ 1 | $ 0 |
Equity (Details)
Equity (Details) - USD ($) | May 31, 2017 | May 04, 2017 | Feb. 06, 2017 | Jan. 31, 2017 | Jan. 05, 2017 | Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 310,376,634 | |||||||||
Proceeds from initial offering | $ 1,692,058,000 | $ 1,692,058,000 | $ 0 | |||||||
Offering costs paid | $ 5,426,000 | $ 2,457,000 | 0 | |||||||
Common stock, shares outstanding (in shares) | 310,376,634 | 310,376,634 | ||||||||
Preferred shares, shares outstanding (in shares) | 0 | 0 | ||||||||
Common stock, shares issued (in shares) | 1,000 | |||||||||
Preferred stock, shares issued (in shares) | 113 | |||||||||
Preferred stock, dividend rate, percentage | 12.00% | |||||||||
Contributions by investors | $ 1,153,000 | $ 1,153,000 | 0 | |||||||
Dividends, preferred stock, cash paid | 0 | $ 0 | ||||||||
Preferred stock, amount of preferred dividends in arrears | 0 | |||||||||
Payments of dividends | 0 | 0 | ||||||||
Proceeds from contributed capital | $ 0 | $ 128,002,000 | ||||||||
Profit interests, cancellations | $ 19,686,000 | |||||||||
Profit interests, distributions | 19,686,000 | |||||||||
Class B Units | ||||||||||
Class of Stock [Line Items] | ||||||||||
Profit interests, notes receivable distributed | $ 11,023,000 | |||||||||
Profit interests, notes receivable issued | 20,228,000 | |||||||||
Profit interests, notes receivable accrued interest | $ 1,527,000 | |||||||||
Profit interests, cancellations | $ 7,723,000 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares granted (in shares) | 3,290,126 | |||||||||
Scenario, Forecast | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, dividends per share (in dollars per share) | $ 0.06 | |||||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.06 | |||||||||
IH2 | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares outstanding (in shares) | 1,000 | |||||||||
Preferred shares, shares outstanding (in shares) | 113 | |||||||||
IH1 | Class B Units | ||||||||||
Class of Stock [Line Items] | ||||||||||
Profit interests, distributions | $ 11,963,000 | |||||||||
Minimum | Class B Units | ||||||||||
Class of Stock [Line Items] | ||||||||||
Profit interests, notes receivable applicable interest rate | 1.57% | |||||||||
Maximum | Class B Units | ||||||||||
Class of Stock [Line Items] | ||||||||||
Profit interests, notes receivable applicable interest rate | 1.97% |
Related Party Transactions - (D
Related Party Transactions - (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Related Party Transactions [Abstract] | |
Repayments of amounts due to related party | $ 1,959 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) $ in Thousands | Jan. 31, 2017employeeshares | Jan. 31, 2017USD ($)shares | Mar. 31, 2017shares | Dec. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, vested and excluded from conversion or cancellation (in shares) | 3,878 | |||
Share-based compensation arrangement, number of employees that elected not to convert shares | employee | 1 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 62,529 | |||
Share-based compensation arrangement, vested, number (in shares) | 51,039 | |||
Share-based compensation arrangement, equity instruments other than options, nonvested, number (in shares) | 11,490 | 0 | ||
Class B Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 9,838 | |||
Share-based compensation arrangement, accelerated vesting, number of shares (in shares) | 7,520,000 | |||
Share-based compensation arrangement, accelerated compensation cost | $ | $ 11,601 | |||
Share-based compensation arrangement, forfeited (in shares) | 17,669 | 17,669 | ||
Share-based compensation arrangement, vested, number (in shares) | 40,992 | 40,992 | ||
Share-based compensation arrangement, outstanding, number (in shares) | 0 | 49,553 | ||
IH6 | Class B Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 9,650 | |||
IH1, IH2, IH3 | Class B Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 0 | |||
Manager | Class B Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, non-option equity instruments, nonvested, number (in shares) | 0 | |||
IH6 Bonus Awards | Class B Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 9,650 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Conversion Multiplier | 0.5 | 0.5 |
Share-Based Compensation Summar
Share-Based Compensation Summary of Class B Unit Activity (Details) - $ / shares | Jan. 31, 2017 | Mar. 31, 2017 |
Class B Units | ||
Class B Units Activity | ||
Beginning Balance (in shares) | 49,553 | |
Granted (in shares) | 9,838 | |
Units converted (in shares) | (730) | (730) |
Forfeited (in shares) | (17,669) | (17,669) |
Ending Balance (in shares) | 0 | |
Class B Units Weighted Average Grant Date Fair Value | ||
Balance, December 31, 2016 | $ 2,900 | |
Granted (in dollars per share) | 100 | |
Units converted (in dollars per share) | (1,700) | |
Canceled (in dollars per share) | 600 | |
Balance, March 31, 2017 | $ 0 | |
Class B Units | Employee | ||
Class B Units Activity | ||
Beginning Balance (in shares) | 9,915 | |
Granted (in shares) | 85 | |
Units converted (in shares) | (245) | |
Forfeited (in shares) | (555) | |
Class B Units Weighted Average Grant Date Fair Value | ||
Balance, December 31, 2016 | $ 4,200 | |
Granted (in dollars per share) | 14,000 | |
Units converted (in dollars per share) | (3,400) | |
Canceled (in dollars per share) | 8,200 | |
Balance, March 31, 2017 | $ 0 | |
Class B Units | Non-employee | ||
Class B Units Activity | ||
Beginning Balance (in shares) | 39,638 | |
Granted (in shares) | 9,753 | |
Units converted (in shares) | (485) | |
Forfeited (in shares) | (17,114) | |
Class B Units Weighted Average Grant Date Fair Value | ||
Balance, December 31, 2016 | $ 2,500 | |
Granted (in dollars per share) | 0 | |
Units converted (in dollars per share) | (800) | |
Canceled (in dollars per share) | 400 | |
Balance, March 31, 2017 | $ 0 | |
Restricted Stock | ||
Class B Units Activity | ||
Granted (in shares) | 62,529 | |
Affiliated Entity | Class B Units | ||
Class B Units Activity | ||
Units converted (in shares) | (40,992) | |
Class B Units Weighted Average Grant Date Fair Value | ||
Units converted (in dollars per share) | $ (3,200) | |
Affiliated Entity | Class B Units | Employee | ||
Class B Units Activity | ||
Units converted (in shares) | (9,200) | |
Class B Units Weighted Average Grant Date Fair Value | ||
Units converted (in dollars per share) | $ (4,000) | |
Affiliated Entity | Class B Units | Non-employee | ||
Class B Units Activity | ||
Units converted (in shares) | (31,792) | |
Class B Units Weighted Average Grant Date Fair Value | ||
Units converted (in dollars per share) | $ (2,900) |
Share-Based Compensation Summ54
Share-Based Compensation Summary of RSAs and RSUs (Details) - USD ($) | Feb. 01, 2017 | Jan. 31, 2017 | Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, allocated share-based compensation expense | $ 44,244,000 | $ 4,206,000 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 62,529 | |||||
Share-based compensation arrangement, vested, number (in shares) | 51,039 | 51,039 | ||||
Share-based compensation expense | $ (246,000) | |||||
Restricted Stock and Restricted Stock Units Outstanding | ||||||
Balance, January 1, 2017 (in shares) | 0 | 0 | ||||
Granted (in shares) | 62,529 | |||||
Vested (in shares) | (51,039) | |||||
Forfeited (in shares) | 0 | |||||
Balance, March 31, 2017 (in shares) | 11,490 | 11,490 | ||||
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | ||||||
Beginning Balance (in dollars per share) | $ 0 | $ 0 | ||||
Granted (in dollars per share) | 15.50 | |||||
Vested (in dollars per share) | (15.88) | |||||
Forfeited (in dollars per share) | 0 | |||||
Ending Balance (in dollars per share) | $ 13.83 | $ 13.83 | ||||
Restricted Stock and Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, vested in period, fair value | $ (28,912,000) | |||||
Restricted Stock and Restricted Stock Units Outstanding | ||||||
Balance, January 1, 2017 (in shares) | 0 | 0 | ||||
Granted (in shares) | 3,352,655 | |||||
Vested (in shares) | (1,456,109) | |||||
Forfeited (in shares) | (51,252) | |||||
Balance, March 31, 2017 (in shares) | 1,845,294 | 1,845,294 | ||||
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | ||||||
Beginning Balance (in dollars per share) | $ 0 | $ 0 | ||||
Granted (in dollars per share) | 19.92 | |||||
Vested (in dollars per share) | (19.86) | |||||
Forfeited (in dollars per share) | (20) | |||||
Ending Balance (in dollars per share) | $ 19.96 | $ 19.96 | ||||
Restricted Stock Units (RSUs) | ||||||
Restricted Stock and Restricted Stock Units Outstanding | ||||||
Balance, January 1, 2017 (in shares) | 0 | 0 | ||||
Granted (in shares) | 3,290,126 | |||||
Vested (in shares) | (1,405,070) | |||||
Forfeited (in shares) | (51,252) | |||||
Balance, March 31, 2017 (in shares) | 1,833,804 | 1,833,804 | ||||
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | ||||||
Beginning Balance (in dollars per share) | $ 0 | $ 0 | ||||
Granted (in dollars per share) | 20 | |||||
Vested (in dollars per share) | (20) | |||||
Forfeited (in dollars per share) | (20) | |||||
Ending Balance (in dollars per share) | $ 20 | $ 20 | ||||
Class B Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 9,838 | |||||
Share-based compensation arrangement, vested, number (in shares) | 40,992 | 40,992 | ||||
Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, number of shares authorized (in shares) | 16,000,000 | |||||
Restricted Stock and Restricted Stock Units Outstanding | ||||||
Balance, March 31, 2017 (in shares) | 3,290,126 | 3,290,126 | ||||
Supplemental Bonus Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 2,979,001 | |||||
Share-based compensation arrangement, aggregate fair value granted during period | $ 59,580,000 | |||||
IH6 Bonus Awards | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, aggregate fair value granted during period | 4,825,000 | |||||
Share-based compensation arrangement, vested, number (in shares) | 241,250 | |||||
IH6 Bonus Awards | Class B Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 9,650 | |||||
Completion of IPO | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, award vesting rights, percentage | 33.00% | |||||
Anniversary One | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, award vesting rights, percentage | 33.00% | |||||
Anniversary Two | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, award vesting rights, percentage | 33.00% | |||||
Director | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement, non-option equity instrument, granted (in shares) | 69,875 | |||||
Share-based compensation arrangement, aggregate fair value granted during period | $ 1,398,000 |
Share-Based Compensation Summ55
Share-Based Compensation Summary of Total Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | $ 44,244 | $ 4,206 |
Employee service share-based compensation, compensation not yet recognized | 32,322 | |
General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | 40,271 | 4,051 |
Property Management Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | 3,973 | 155 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee service share-based compensation, compensation not yet recognized | 0 | |
Performance Shares | General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | 11,998 | 4,051 |
Performance Shares | Property Management Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | 3 | 155 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee service share-based compensation, compensation not yet recognized | 32,294 | |
Restricted Stock Units (RSUs) | General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | 28,463 | 0 |
Restricted Stock Units (RSUs) | Property Management Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | 4,020 | 0 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee service share-based compensation, compensation not yet recognized | 28 | |
Restricted Stock | General and Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | (190) | 0 |
Restricted Stock | Property Management Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Share-based compensation arrangement, allocated share-based compensation expense | (50) | $ 0 |
Restricted Stock and Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Employee service share-based compensation, compensation not yet recognized | $ 32,322 | |
Share-based compensation arrangement, weighted average remaining contractual terms | 1 year 4 months 10 days |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities carried at historical cost on the consolidated balance sheets | ||
Deferred financing costs, net | $ 9,242 | $ 0 |
Reported Value Measurement | Fair Value, Inputs, Level 2 | ||
Assets carried at historical cost on the consolidated balance sheets | ||
Investments in debt securities | 209,386 | 209,337 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Assets carried at historical cost on the consolidated balance sheets | ||
Investments in debt securities | 209,744 | 209,390 |
Secured Debt | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Deferred financing costs, net | 5,053 | 9,256 |
Secured Debt | Reported Value Measurement | Fair Value, Inputs, Level 2 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 4,233,578 | 5,263,994 |
Secured Debt | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 4,245,640 | 5,265,180 |
Unsecured Debt | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Deferred financing costs, net | 14,134 | |
Unsecured Debt | Reported Value Measurement | Fair Value, Inputs, Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 1,500,000 | 0 |
Unsecured Debt | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 1,501,639 | 0 |
Loans Payable | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Deferred financing costs, net | 6,044 | |
Loans Payable | Reported Value Measurement | Fair Value, Inputs, Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 0 | 2,321,585 |
Loans Payable | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | $ 0 | $ 2,329,551 |
Fair Value Measurements - Impai
Fair Value Measurements - Impaired Assets, Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Total impairments | $ (1,037) | $ 0 | ||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Rental Properties | ||||
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Pre-impairment amount | $ 496 | $ 0 | ||
Total impairments | (267) | 0 | ||
Fair value | 229 | 0 | ||
Rental Properties | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||||
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Pre-impairment amount | $ 7,242 | $ 0 | ||
Total impairments | (770) | 0 | ||
Fair value | $ 6,472 | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) | 2 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Earnings per share, period used to compute earnings per share | 59 days |
Numerator: | |
Net loss available to common shareholders | $ | $ (25,512,000) |
Net Ioss available to common shareholders | $ | $ (25,512,000) |
Denominator: | |
Basic and diluted weighted average common shares outstanding (in shares) | shares | 311,651,082 |
Net loss per common share - basic and diluted (in dollars per share) | $ / shares | $ (0.08) |
Restricted Stock and Restricted Stock Units | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Incremental common shares attributable to dilutive effect of share-based payment arrangements | shares | 297,176 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Income tax expense recognized in gain (loss) on sale of property | $ 1,134 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Material uninsured losses | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | May 31, 2017$ / shares | May 09, 2017USD ($) | May 04, 2017$ / shares | Apr. 28, 2017USD ($)propertyloan | May 05, 2017USD ($)property | Mar. 31, 2017USD ($)property | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)property |
Subsequent Event [Line Items] | ||||||||
Real estate held-for-sale | $ 37,142,000 | $ 45,062,000 | ||||||
Proceeds from sale of residential properties | $ 73,652,000 | $ 72,701,000 | ||||||
Number of real estate properties classified as held-for-sale | property | 358 | 391 | ||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of long-term debt | $ 2,865,000 | |||||||
Common stock, dividends, per share, declared (in dollars per share) | $ / shares | $ 0.06 | |||||||
FNMA Loan | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt instrument, term | 10 years | |||||||
Debt instrument, number of loans | loan | 2 | |||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||
Number of real estate properties collateralized | property | 7,204 | |||||||
Debt instrument, interest rate, stated percentage | 4.23% | |||||||
IH1 2014-1 | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of long-term debt | $ 420,000,000 | |||||||
IH1 2014-3 | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Repayments of long-term debt | $ 510,000,000 | |||||||
Scenario, Forecast | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock, dividends per share (in dollars per share) | $ / shares | $ 0.06 | |||||||
Residential Property Dispositions, Not Discontinued Operations | ||||||||
Subsequent Event [Line Items] | ||||||||
Real estate held-for-sale | $ 12,691,000 | |||||||
Number of real estate properties classified as held-for-sale | property | 83 | |||||||
Number of real estate properties held for investment | property | 14 | |||||||
Residential Property Dispositions, Not Discontinued Operations | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of real estate properties sold | property | 97 | |||||||
Proceeds from sale of residential properties | $ 15,833,000 |