Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38004 | |
Entity Registrant Name | Invitation Homes Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 90-0939055 | |
Entity Address, Address Line One | 1717 Main Street, | |
Entity Address, Address Line Two | Suite 2000 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | (972) | |
Local Phone Number | 421-3600 | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | INVH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Stock Outstanding (in shares) | 611,958,239 | |
Entity Central Index Key | 0001687229 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Fiscal Year End | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments in single-family residential properties: | ||
Land | $ 4,907,452 | $ 4,800,110 |
Building and improvements | 16,605,269 | 15,900,825 |
Total gross investments in the properties | 21,512,721 | 20,700,935 |
Less: accumulated depreciation | (4,112,685) | (3,670,561) |
Investments in single-family residential properties, net | 17,400,036 | 17,030,374 |
Cash and cash equivalents | 762,638 | 262,870 |
Restricted cash | 217,253 | 191,057 |
Goodwill | 258,207 | 258,207 |
Investments in unconsolidated joint ventures | 258,030 | 280,571 |
Other assets, net | 570,034 | 513,629 |
Total assets | 19,466,198 | 18,536,708 |
Liabilities: | ||
Mortgage loans, net | 1,631,973 | 1,645,795 |
Secured term loan, net | 401,460 | 401,530 |
Unsecured notes, net | 3,304,082 | 2,518,185 |
Term loan facilities, net | 3,209,725 | 3,203,567 |
Revolving facility | 0 | 0 |
Accounts payable and accrued expenses | 368,065 | 198,423 |
Resident security deposits | 180,111 | 175,552 |
Other liabilities | 101,236 | 70,025 |
Total liabilities | 9,196,652 | 8,213,077 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 611,958,239 and 611,411,382 outstanding as of September 30, 2023 and December 31, 2022, respectively | 6,120 | 6,114 |
Additional paid-in capital | 11,149,732 | 11,138,463 |
Accumulated deficit | (1,039,782) | (951,220) |
Accumulated other comprehensive income | 119,728 | 97,985 |
Total stockholders' equity | 10,235,798 | 10,291,342 |
Non-controlling interests | 33,748 | 32,289 |
Total equity | 10,269,546 | 10,323,631 |
Total liabilities and equity | $ 19,466,198 | $ 18,536,708 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock, shares outstanding (in shares) | 611,958,239 | 611,411,382 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Rental revenues and other property income | $ 614,291 | $ 565,391 | $ 1,797,730 | $ 1,650,131 |
Management fee revenues | 3,404 | 3,284 | 10,227 | 8,154 |
Total revenues | 617,695 | 568,675 | 1,807,957 | 1,658,285 |
Expenses: | ||||
Property operating and maintenance | 229,488 | 203,787 | 651,793 | 576,736 |
Property management expense | 23,399 | 22,385 | 70,563 | 65,166 |
General and administrative | 22,714 | 20,123 | 59,957 | 57,104 |
Interest expense | 86,736 | 76,454 | 243,408 | 225,683 |
Depreciation and amortization | 170,696 | 160,428 | 501,128 | 474,796 |
Impairment and other | 2,496 | 20,004 | 5,527 | 22,874 |
Total expenses | 535,529 | 503,181 | 1,532,376 | 1,422,359 |
Gains (losses) on investments in equity securities, net | (499) | (796) | 113 | (4,000) |
Other, net | (2,533) | (8,372) | (7,968) | (11,605) |
Gain on sale of property, net of tax | 57,989 | 23,952 | 134,448 | 69,486 |
Losses from investments in unconsolidated joint ventures | (4,902) | (849) | (11,087) | (5,870) |
Net income | 132,221 | 79,429 | 391,087 | 283,937 |
Net income attributable to non-controlling interests | (403) | (250) | (1,163) | (1,180) |
Net income attributable to common stockholders | 131,818 | 79,179 | 389,924 | 282,757 |
Net income available to participating securities | (181) | (147) | (518) | (515) |
Net income available to common stockholders — basic | 131,637 | 79,032 | 389,406 | 282,242 |
Net income available to common stockholders — diluted | $ 131,637 | $ 79,032 | $ 389,406 | $ 282,242 |
Weighted average common shares outstanding — basic (in shares) | 612,000,811 | 610,845,820 | 611,849,302 | 609,212,132 |
Weighted average common shares outstanding — diluted (in shares) | 613,580,042 | 612,647,588 | 613,155,041 | 610,741,723 |
Net income per common share — basic (in dollars per share) | $ 0.22 | $ 0.13 | $ 0.64 | $ 0.46 |
Net income per common share — diluted (in dollars per share) | $ 0.21 | $ 0.13 | $ 0.64 | $ 0.46 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 132,221 | $ 79,429 | $ 391,087 | $ 283,937 |
Other comprehensive income | ||||
Unrealized gains on interest rate swaps | 27,845 | 102,940 | 73,853 | 316,479 |
(Gains) losses from interest rate swaps reclassified into earnings from accumulated other comprehensive income | (21,081) | 9,591 | (52,023) | 63,837 |
Other comprehensive income | 6,764 | 112,531 | 21,830 | 380,316 |
Comprehensive income | 138,985 | 191,960 | 412,917 | 664,253 |
Comprehensive income attributable to non-controlling interests | (423) | (677) | (1,250) | (2,739) |
Comprehensive income attributable to common stockholders | $ 138,562 | $ 191,283 | $ 411,667 | $ 661,514 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Non-Controlling Interests |
Beginning balance (in shares) at Dec. 31, 2021 | 601,045,438 | ||||||
Beginning balance at Dec. 31, 2021 | $ 9,838,804 | $ 9,797,742 | $ 6,010 | $ 10,873,539 | $ (794,869) | $ (286,938) | $ 41,062 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | (1,983) | (1,983) | |||||
Net income | 283,937 | 282,757 | 282,757 | 1,180 | |||
Dividends and dividend equivalents declared | (404,026) | (404,026) | (404,026) | ||||
Issuance of common stock — settlement of RSUs, net of tax (in shares) | 659,283 | ||||||
Issuance of common stock — settlement of RSUs, net of tax | (12,850) | (12,850) | $ 7 | (12,857) | |||
Issuance of common stock — settlement of 2022 Convertible Notes (in shares) | 6,216,261 | ||||||
Issuance of common stock — settlement of 2022 Convertible Notes | $ 141,219 | 141,219 | $ 62 | 141,157 | |||
Issuance of common stock, net (in shares) | 10,364,471 | 2,438,927 | |||||
Issuance of common stock, net | $ 98,367 | 98,367 | $ 25 | 98,342 | |||
Share-based compensation expense | 22,565 | 19,726 | 19,726 | 2,839 | |||
Total other comprehensive income | 380,316 | 378,757 | 378,757 | 1,559 | |||
Redemption of OP Units for common stock (in shares) | 1,050,000 | ||||||
Redemption of OP Units for common stock | 0 | 13,434 | $ 10 | 13,351 | 73 | (13,434) | |
Ending balance (in shares) at Sep. 30, 2022 | 611,409,909 | ||||||
Ending balance at Sep. 30, 2022 | 10,346,349 | 10,315,126 | $ 6,114 | 11,133,258 | (916,138) | 91,892 | 31,223 |
Beginning balance (in shares) at Jun. 30, 2022 | 610,359,909 | ||||||
Beginning balance at Jun. 30, 2022 | 10,281,989 | 10,238,690 | $ 6,104 | 11,113,146 | (860,275) | (20,285) | 43,299 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | (488) | (488) | |||||
Net income | 79,429 | 79,179 | 79,179 | 250 | |||
Dividends and dividend equivalents declared | $ (135,042) | (135,042) | (135,042) | ||||
Issuance of common stock, net (in shares) | 1,050,000 | ||||||
Share-based compensation expense | $ 7,930 | 6,761 | 6,761 | 1,169 | |||
Total other comprehensive income | 112,531 | 112,104 | 112,104 | 427 | |||
Redemption of OP Units for common stock (in shares) | 1,050,000 | ||||||
Redemption of OP Units for common stock | 0 | 13,434 | $ 10 | 13,351 | 73 | (13,434) | |
Ending balance (in shares) at Sep. 30, 2022 | 611,409,909 | ||||||
Ending balance at Sep. 30, 2022 | $ 10,346,349 | 10,315,126 | $ 6,114 | 11,133,258 | (916,138) | 91,892 | 31,223 |
Beginning balance (in shares) at Dec. 31, 2022 | 611,411,382 | 611,411,382 | |||||
Beginning balance at Dec. 31, 2022 | $ 10,323,631 | 10,291,342 | $ 6,114 | 11,138,463 | (951,220) | 97,985 | 32,289 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | (1,860) | (1,860) | |||||
Net income | 391,087 | 389,924 | 389,924 | 1,163 | |||
Dividends and dividend equivalents declared | (478,486) | (478,486) | (478,486) | ||||
Issuance of common stock — settlement of RSUs, net of tax (in shares) | 546,857 | ||||||
Issuance of common stock — settlement of RSUs, net of tax | $ (8,149) | (8,149) | $ 6 | (8,155) | |||
Issuance of common stock, net (in shares) | 546,857 | ||||||
Share-based compensation expense | $ 21,493 | 19,424 | 19,424 | 2,069 | |||
Total other comprehensive income | $ 21,830 | 21,743 | 21,743 | 87 | |||
Ending balance (in shares) at Sep. 30, 2023 | 611,958,239 | 611,958,239 | |||||
Ending balance at Sep. 30, 2023 | $ 10,269,546 | 10,235,798 | $ 6,120 | 11,149,732 | (1,039,782) | 119,728 | 33,748 |
Beginning balance (in shares) at Jun. 30, 2023 | 611,956,170 | ||||||
Beginning balance at Jun. 30, 2023 | 10,282,708 | 10,249,873 | $ 6,120 | 11,141,829 | (1,011,060) | 112,984 | 32,835 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | (514) | (514) | |||||
Net income | 132,221 | 131,818 | 131,818 | 403 | |||
Dividends and dividend equivalents declared | (160,540) | (160,540) | (160,540) | ||||
Issuance of common stock — settlement of RSUs, net of tax (in shares) | 2,069 | ||||||
Issuance of common stock — settlement of RSUs, net of tax | $ (22) | (22) | (22) | ||||
Issuance of common stock, net (in shares) | 2,069 | ||||||
Share-based compensation expense | $ 8,929 | 7,925 | 7,925 | 1,004 | |||
Total other comprehensive income | $ 6,764 | 6,744 | 6,744 | 20 | |||
Ending balance (in shares) at Sep. 30, 2023 | 611,958,239 | 611,958,239 | |||||
Ending balance at Sep. 30, 2023 | $ 10,269,546 | $ 10,235,798 | $ 6,120 | $ 11,149,732 | $ (1,039,782) | $ 119,728 | $ 33,748 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | |||||||||
Aug. 08, 2023 | May 10, 2023 | Feb. 14, 2023 | Nov. 08, 2022 | Aug. 09, 2022 | May 10, 2022 | Feb. 14, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Common stock dividends declared (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.78 | $ 0.66 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities: | ||
Net income | $ 391,087 | $ 283,937 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 501,128 | 474,796 |
Share-based compensation expense | 21,493 | 22,565 |
Amortization of deferred financing costs | 12,003 | 11,105 |
Amortization of debt discounts | 1,335 | 1,254 |
Provisions for impairment | 342 | 238 |
(Gains) losses on investments in equity securities, net | (113) | 4,000 |
Gain on sale of property, net of tax | (134,448) | (69,486) |
Change in fair value of derivative instruments | 7,011 | 7,135 |
Loss from investments in unconsolidated joint ventures, net of operating distributions | 13,370 | 7,152 |
Other non-cash amounts included in net income | 4,236 | 6,049 |
Changes in operating assets and liabilities: | ||
Other assets, net | (19,466) | (1,953) |
Accounts payable and accrued expenses | 185,826 | 139,884 |
Resident security deposits | 4,559 | 8,113 |
Other liabilities | 31,181 | 9,157 |
Net cash provided by operating activities | 1,019,544 | 903,946 |
Investing Activities: | ||
Amounts deposited and held by others | 5,212 | (33,471) |
Acquisition of single-family residential properties | (906,845) | (509,163) |
Initial renovations to single-family residential properties | (18,980) | (104,943) |
Other capital expenditures for single-family residential properties | (162,398) | (151,962) |
Proceeds from sale of single-family residential properties | 354,409 | 181,569 |
Repayment proceeds from retained debt securities | 627 | 42,404 |
Investments in equity securities | (32,610) | (14,340) |
Proceeds from sale of investments in equity securities | 0 | 5,762 |
Investments in unconsolidated joint ventures | (442) | (166,588) |
Non-operating distributions from unconsolidated joint ventures | 9,613 | 2,934 |
Other investing activities | (18,182) | (8,291) |
Net cash used in investing activities | (769,596) | (756,089) |
Financing Activities: | ||
Payment of dividends and dividend equivalents | (478,841) | (404,377) |
Distributions to non-controlling interests | (1,860) | (1,983) |
Payment of taxes related to net share settlement of RSUs | (8,149) | (12,850) |
Payments on mortgage loans | (15,196) | (849,712) |
Payments on secured term loan | (234) | 0 |
Proceeds from unsecured notes | 790,144 | 598,434 |
Proceeds from term loan facilities | 0 | 150,000 |
Proceeds from revolving facility | 150,000 | 130,000 |
Payments on revolving facility | (150,000) | (130,000) |
Proceeds from issuance of common stock, net | 0 | 98,367 |
Deferred financing costs paid | (7,741) | (13,043) |
Other financing activities | (2,107) | (15,655) |
Net cash provided by (used in) financing activities | 276,016 | (450,819) |
Change in cash, cash equivalents, and restricted cash | 525,964 | (302,962) |
Cash, cash equivalents, and restricted cash, beginning of period (Note 4) | 453,927 | 818,858 |
Cash, cash equivalents, and restricted cash, end of period (Note 4) | 979,891 | 515,896 |
Supplemental cash flow disclosures: | ||
Interest paid, net of amounts capitalized | 212,434 | 196,542 |
Interest capitalized as investments in single-family residential properties, net | 1,779 | 5,805 |
Cash paid for income taxes | 86 | 1,497 |
Operating cash flows from operating leases | 4,597 | 4,561 |
Financing cash flows from finance leases | 2,101 | 2,032 |
Non-cash investing and financing activities: | ||
Accrued renovation improvements at period end | 3,429 | 5,847 |
Accrued residential property capital improvements at period end | 10,801 | 11,562 |
Transfer of residential property, net to other assets, net for held for sale assets | 122,329 | 65,074 |
Change in other comprehensive income from cash flow hedges | 14,860 | 373,244 |
ROU assets obtained in exchange for operating lease liabilities | 72 | 1,940 |
ROU assets obtained in exchange for finance lease liabilities | 2,057 | 295 |
Net settlement of 2022 Convertible Notes in shares of common stock | $ 0 | $ 141,219 |
Organization and Formation
Organization and Formation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Formation | Organization and Formation Invitation Homes Inc. (“INVH”) is a real estate investment trust (“REIT”) that conducts its operations through Invitation Homes Operating Partnership LP (“INVH LP”). INVH LP was formed for the purpose of owning, renovating, leasing, and operating single-family residential properties. Through THR Property Management L.P., a wholly owned subsidiary of INVH LP (the “Manager”), we provide all management and other administrative services with respect to the properties we own. On February 6, 2017, INVH completed an initial public offering (“IPO”), changed its jurisdiction of incorporation to Maryland, and amended its charter to provide for the issuance of up to 9,000,000,000 shares of common stock and 900,000,000 shares of preferred stock, in each case $0.01 par value per share. In connection with certain pre-IPO reorganization transactions, INVH LP became (1) owned by INVH directly and through Invitation Homes OP GP LLC, a wholly owned subsidiary of INVH (the “General Partner”), and (2) the owner of all of the assets, liabilities, and operations of certain pre-IPO ownership entities. These transactions were accounted for as a reorganization of entities under common control utilizing historical cost basis. On November 16, 2017, INVH and certain of its affiliates entered into a series of transactions with Starwood Waypoint Homes (“SWH”) and certain SWH affiliates which resulted in SWH and its operating partnership being merged into INVH and INVH LP, respectively, with INVH and INVH LP being the surviving entities. These transactions were accounted for as a business combination in accordance with ASC 805, Business Combinations , and INVH was designated as the accounting acquirer. The limited partnership interests of INVH LP consist of common units and other classes of limited partnership interests that may be issued (the “OP Units”). As of September 30, 2023, INVH owns 99.7% of the common OP Units and has the full, exclusive, and complete responsibility for and discretion over the day-to-day management and control of INVH LP. Our organizational structure includes several wholly owned subsidiaries of INVH LP that were formed to facilitate certain of our financing arrangements (the “Borrower Entities”). These Borrower Entities are used to align the ownership of our single-family residential properties with certain of our debt instruments. Collateral for certain of our individual debt instruments may be 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 7). References to “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer, collectively, to INVH, INVH LP, and the consolidated subsidiaries of INVH LP. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 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 (the “SEC”) 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 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. These condensed consolidated financial statements include the accounts of INVH and its consolidated subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments that 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 and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. We consolidate wholly owned subsidiaries and entities we are otherwise able to control in accordance with GAAP. We evaluate each investment entity that is not wholly owned to determine whether to follow the variable interest entity (“VIE”) or the voting interest entity (“VOE”) model. Once the appropriate consolidation model is identified, we then evaluate whether the entity should be consolidated. Under the VIE model, we consolidate an investment if we have control to direct the activities of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the VOE model, we consolidate an investment if (1) we control the investment through ownership of a majority voting interest if the investment is not a limited partnership or (2) we control the investment through our ability to remove the other partners in the investment, at our discretion, when the investment is a limited partnership. Based on these evaluations, we account for each of the investments in joint ventures described in Note 5 using the equity method. Our initial investments in the joint ventures are recorded at cost, except for any such interest initially recorded at fair value in connection with a business combination. The investments in these joint ventures are subsequently adjusted for our proportionate share of net earnings or losses and other comprehensive income or loss, cash contributions made and distributions received, and other adjustments, as appropriate. Distributions of operating profit from the joint ventures are reported as part of operating activities while distributions related to a capital transaction, such as a refinancing transaction or sale, are reported as investing activities on our condensed consolidated statements of cash flows. When events or circumstances indicate that our investments in unconsolidated joint ventures may not be recoverable, we assess the investments for and recognize other-than-temporary impairment. Non-controlling interests represent the OP Units not owned by INVH, including any OP Units resulting from vesting and conversion of units granted in connection with certain share-based compensation awards. Non-controlling interests are presented as a separate component of equity on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, and the condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 include an allocation of the net income attributable to the non-controlling interest holders. OP Units are redeemable for shares of our common stock on a one-for-one basis or, in our sole discretion, cash, and redemptions of OP Units are accounted for as a reduction in non-controlling interests with an offset to stockholders’ equity based on the pro rata number of OP Units redeemed. Significant Risks and Uncertainties Our financial condition and results of operations are subject to risks related to overall unfavorable global and United States economic conditions (including inflation and rising interest rates), uncertainty in financial markets (including as a result of events affecting financial institutions), ongoing geopolitical tensions, and a general decline in business activity and/or consumer confidence. These factors could adversely affect (i) our ability to acquire or dispose of single-family homes, (ii) our access to financial markets on attractive terms, or at all, and (iii) the value of our homes and our business that could cause us to recognize impairments in value of our tangible assets or goodwill. High levels of inflation and rising interest rates may also negatively impact consumer income, credit availability, and spending, among other factors, which may adversely impact our business, financial condition, cash flows, and results of operations, including the ability of our residents to pay rent. These factors, which include labor shortages and inflationary increases in labor and material costs, have impacted and may continue to impact certain aspects of our business. 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. Reclassifications We reclassified $14,340 of investments in equity securities for the nine months ended September 30, 2022 from other investing activities on the condensed consolidated statement of cash flows to a separate cash flow line item to conform to our current presentation. This reclassification had no effect on the total reported investing activities on the condensed consolidated statement of cash flows for the nine months ended September 30, 2022. 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 consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022. Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which refines the scope of Topic 848 and clarifies some of its guidance. ASU 2020-04 provides temporary optional guidance that provides transition relief for reference rate reform, including optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions that reference the London Interbank Offer Rate (“LIBOR”) or a reference rate that is expected to be discontinued as a result of reference rate reform if certain criteria are met. ASU 2020-04 is effective upon issuance, and the provisions generally can be applied prospectively as of January 1, 2020 through December 31, 2024 (as extended by the FASB in December 2022). In certain cases, we have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. We have also elected to apply practical expedients related to contract modifications, changes in critical terms, and updates to the designated hedged risk(s) as qualifying changes are made to applicable debt and derivative instruments. Application of these expedients preserves the presentation of derivatives contracts consistent with past presentation. On April 18, 2023, we completed a series of transactions related to certain of our variable rate debt and derivative agreements that were originally indexed to LIBOR to effectuate a transition to the Secured Overnight Financing Rate (“SOFR”). While the original agreements provided for a prescribed transition to an alternate rate, this series of transactions amended or modified our Credit Facility (as defined in Note 7) and all of our LIBOR-indexed interest rate swap agreements such that each agreement is now indexed to a rate determined by reference to a published forward-looking SOFR rate for the interest period relevant to such borrowing (“Term SOFR”). Effective July 3, 2023, one of our mortgage loans, IH 2018-4, was amended to transition to Term SOFR from LIBOR. The related interest rate cap agreement was amended effective July 15, 2023 to transition to Term SOFR from LIBOR. As a result of these transactions, all of our debt and derivative instrument agreements are now indexed to Term SOFR. Please refer to Notes 7 and 8 for additional information about these modifications. |
Investments in Single-Family Re
Investments in Single-Family Residential Properties | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
Investments in Single-Family Residential Properties | Investments in Single-Family Residential Properties The following table sets forth the net carrying amount associated with our properties by component: September 30, December 31, 2022 Land $ 4,907,452 $ 4,800,110 Single-family residential property 15,915,306 15,228,631 Capital improvements 563,024 548,700 Equipment 126,939 123,494 Total gross investments in the properties 21,512,721 20,700,935 Less: accumulated depreciation (4,112,685) (3,670,561) Investments in single-family residential properties, net $ 17,400,036 $ 17,030,374 As of September 30, 2023 and December 31, 2022, the carrying amount of the residential properties above includes $134,275 and $129,341, respectively, of capitalized acquisition costs (excluding purchase price), along with $77,402 and $76,408, respectively, of capitalized interest, $30,691 and $30,435, respectively, of capitalized property taxes, $4,982 and $4,982, respectively, of capitalized insurance, and $3,663 and $3,627, respectively, of capitalized homeowners’ association (“HOA”) fees. During the three months ended September 30, 2023 and 2022, we recognized $167,921 and $158,199, respectively, of depreciation expense related to the components of the properties, and $2,775 and $2,229, respectively, of depreciation and amortization related to corporate furniture and equipment. These amounts are included in depreciation and amortization in the condensed consolidated statements of operations. Further, during the three months ended September 30, 2023 and 2022, impairments totaling $83 and $101, respectively, have been recognized and are included in impairment and other in the condensed consolidated statements of operations. See Note 11 for additional information regarding these impairments. During the nine months ended September 30, 2023 and 2022, we recognized $493,027 and $468,272, respectively, of depreciation expense related to the components of the properties, and $8,101 and $6,524, respectively, of depreciation and amortization related to corporate furniture and equipment. These amounts are included in depreciation and amortization in the condensed consolidated statements of operations. Further, during the nine months ended September 30, 2023 and 2022, impairments totaling $342 and $238, respectively, have been recognized and are included in impairment and other in the condensed consolidated statements of operations. See Note 11 for additional information regarding these impairments. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheets that sum to the total of such amounts shown in the condensed consolidated statements of cash flows: September 30, December 31, 2022 Cash and cash equivalents $ 762,638 $ 262,870 Restricted cash 217,253 191,057 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 979,891 $ 453,927 Pursuant to the terms of the mortgage loans and the Secured Term Loan (as defined in Note 7), 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) property tax reserves; (ii) insurance reserves; (iii) capital expenditure reserves; and (iv) HOA reserves. The reserve accounts associated with our mortgage loans and Secured Term Loan are under the sole control of the loan servicer. Additionally, we hold security deposits pursuant to resident lease agreements that we are required to segregate. We are also required to hold letters of credit by certain of our insurance policies. Accordingly, amounts funded to these reserve accounts, security deposit accounts, and other restricted accounts have been classified on our condensed consolidated balance sheets as restricted cash. The amounts funded, and to be funded, to the reserve accounts are subject to formulae included in the mortgage loan and Secured Term Loan agreements and are to be released to us subject to certain conditions specified in the loan agreements being met. To the extent that an event of default were to occur, the loan servicer 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. The balances of our restricted cash accounts, as of September 30, 2023 and December 31, 2022, are set forth in the table below. As of September 30, 2023 and December 31, 2022, no amounts were funded to the insurance accounts as the conditions specified in the mortgage loan and Secured Term Loan agreements that require such funding did not exist. September 30, December 31, 2022 Resident security deposits $ 180,450 $ 175,829 Collections 12,456 7,415 Property taxes 18,747 2,717 Letters of credit 2,612 2,109 Capital expenditures 2,297 2,297 Special and other reserves 691 690 Total $ 217,253 $ 191,057 |
Investments In Unconsolidated J
Investments In Unconsolidated Joint Ventures | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In Unconsolidated Joint Ventures | Investments In Unconsolidated Joint Ventures The following table summarizes our investments in unconsolidated joint ventures, which are accounted for using the equity method model of accounting, as of September 30, 2023 and December 31, 2022: Number of Properties Owned Carrying Value Ownership Percentage September 30, December 31, 2022 September 30, December 31, 2022 Pathway Property Company (1) 100.0% 473 340 $ 125,613 $ 131,542 2020 Rockpoint JV (1) 20.0% 2,609 2,610 64,745 70,103 FNMA (2) 10.0% 442 488 35,799 46,151 Pathway Operating Company (3) 15.0% N/A N/A 20,909 22,011 2022 Rockpoint JV (1) 16.7% 132 132 10,964 10,764 Total $ 258,030 $ 280,571 (1) Owns homes in markets within the Western United States, Southeast United States, Florida, and Texas. (2) Owns homes within the Western United States. (3) Represents an investment in an operating company that provides a technology platform and asset management services. In November 2021, we entered into agreements with Pathway Homes and its affiliates, among others, to form a joint venture that will provide unique opportunities for customers to identify a home whereby they are able to first lease and then, if they choose, purchase the home in the future. We have fully funded our capital commitment to the operating company (“Pathway Operating Company”) which provides the technology platform and asset management services for the entity that owns and leases the homes (“Pathway Property Company”). Pathway Homes and its affiliates are responsible for the operations and management of Pathway Operating Company, and we do not have a controlling interest in Pathway Operating Company. As of September 30, 2023, we have funded $136,700 to Pathway Property Company, and our remaining equity commitment is $88,300. A wholly owned subsidiary of INVH LP provides property management and renovation oversight services for and earns fees from Pathway Property Company. As the asset manager, Pathway Operating Company is responsible for the operations and management of Pathway Property Company, and we do not have a controlling interest in Pathway Property Company. In October 2020, we entered into an agreement with Rockpoint Group, L.L.C. (“Rockpoint”) to form a joint venture that will acquire homes in markets where we already own homes (the “2020 Rockpoint JV”). The joint venture is funded with a combination of debt and equity, and we have guaranteed the funding of certain tax, insurance, and non-conforming property reserves related to the joint venture’s financing. We have fully funded our capital commitment to the 2020 Rockpoint JV. The administrative member of the 2020 Rockpoint JV is a wholly owned subsidiary of INVH LP and is responsible for the operations and management of the properties, subject to Rockpoint’s approval of major decisions. We earn property and asset management fees from the 2020 Rockpoint JV. We acquired our interest in the joint venture with the Federal National Mortgage Association (“FNMA”) via the SWH merger. The managing member of the FNMA joint venture is a wholly owned subsidiary of INVH LP and is responsible for the operations and management of the properties, subject to FNMA’s approval of major decisions. We earn property and asset management fees from the FNMA joint venture. In March 2022, we entered into a second agreement with Rockpoint to form a joint venture that will acquire homes in premium locations and at higher price points relative to our other investments in single-family residential properties (the “2022 Rockpoint JV”). As of September 30, 2023, we have funded $10,442 to the 2022 Rockpoint JV, and our remaining equity commitment is $39,558. The joint venture is funded with a combination of debt and equity, and we have guaranteed the funding of certain tax, insurance, and non-conforming property reserves related to the joint venture’s financing. The administrative member of the 2022 Rockpoint JV is a wholly owned subsidiary of INVH LP and is responsible for the operations and management of the properties, subject to Rockpoint’s approval of major decisions. We earn property and asset management fees from the 2022 Rockpoint JV. We recorded net losses from these investments for the three months ended September 30, 2023 and 2022, totaling $4,902 and $849, respectively, and for the nine months ended September 30, 2023 and 2022, totaling $11,087 and $5,870, respectively, which are included in losses from investments in unconsolidated joint ventures in the condensed consolidated statements of operations. The fees earned from our joint ventures (as described above) are related party transactions. For the three months ended September 30, 2023 and 2022, we earned $3,404 and $3,284, respectively, and for the nine months ended September 30, 2023 and 2022, we earned $10,227 and $8,154, respectively, of management fees which are included in management fee revenues in the condensed consolidated statements of operations. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of September 30, 2023 and December 31, 2022, the balances in other assets, net are as follows: September 30, December 31, 2022 Derivative instruments (Note 8) $ 134,017 $ 119,193 Amounts deposited and held by others (Note 14) 95,770 97,709 Investments in debt securities, net 86,617 86,980 Rent and other receivables, net 58,874 54,091 Investments in equity securities 55,136 22,413 Prepaid expenses 43,333 41,972 Held for sale assets (1) 35,778 29,842 Corporate fixed assets, net 24,460 24,484 ROU lease assets — operating and finance, net 13,723 16,534 Deferred financing costs, net 3,702 5,850 Other 18,624 14,561 Total $ 570,034 $ 513,629 (1) As of September 30, 2023 and December 31, 2022, 159 and 131 properties, respectively, are classified as held for sale. Investments in Debt Securities, net In connection with certain of our Securitizations (as defined in Note 7), we have retained and purchased certificates totaling $86,617, net of unamortized discounts of $1,320 as of September 30, 2023. These investments in debt securities are classified as held to maturity investments. As of September 30, 2023, we have not recognized any credit losses with respect to these investments in debt securities, and our retained certificates are scheduled to mature over the next three months to four years. Rent and Other Receivables, net 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. Rental revenues and other property income and the corresponding rent and other receivables are recorded net of any concessions and bad debt (including actual write-offs, credit reserves, and uncollectible amounts) for all periods presented. Variable lease payments consist of resident reimbursements for utilities, and various other fees, including late fees and lease termination fees, among others. Variable lease payments are charged based on the terms and conditions included in the resident leases. For th e three months ended September 30, 2023 and 2022 , rental revenues and other property income includes $41,301 and $35,834 of variable lease payments, respectively. For th e nine months ended September 30, 2023 and 2022, rental revenues and other property income includes $113,875 and $102,960 of variable lease payments, respectively. Future minimum rental revenues and other property income under leases on our single-family residential properties in place as of September 30, 2023 are as follows: Year Lease Payments Remainder of 2023 $ 526,668 2024 1,002,245 2025 135,970 2026 — 2027 — Thereafter — Total $ 1,664,883 Investments in Equity Securities We hold investments in equity securities both with and without a readily determinable fair value. Investments with a readily determinable fair value are measured at fair value, and those without a readily determinable fair value are measured at cost, less any impairment, plus or minus changes resulting from observable price changes for identical or similar investments in the same issuer. As of September 30, 2023 and December 31, 2022, the values of our investments in equity securities are as follows: September 30, December 31, 2022 Investments without a readily determinable fair value $ 54,068 $ 21,500 Investments with a readily determinable fair value 1,068 913 Total $ 55,136 $ 22,413 The components of gains (losses) on investments in equity securities, net as of three and nine months ended September 30, 2023 and 2022 are as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 Net losses recognized on investments sold during the reporting period — with a readily determinable value $ — $ — $ — $ (1,452) Net unrealized gains (losses) on investments still held at the reporting date — with a readily determinable fair value (499) (796) 113 (2,548) Total $ (499) $ (796) $ 113 $ (4,000) Right-of-Use (“ROU”) Lease Assets — Operating and Finance, net The following table presents supplemental information related to leases into which we have entered as a lessee as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Operating Finance Operating Finance Other assets $ 9,920 $ 3,803 $ 12,862 $ 3,672 Other liabilities (Note 14) 11,828 3,439 14,925 3,483 Weighted average remaining lease term 3.2 years 2.4 years 3.0 years 1.4 years Weighted average discount rate 3.3% 4.6% 3.3% 4.0% Deferred Financing Costs, net In connection with the amended and restated Revolving Facility (see Note 7), we incurred $11,846 of financing costs, which have been deferred as other assets, net on our condensed consolidated balance sheets. We amortize deferred financing costs as interest expense on a straight-line basis over the term of the Revolving Facility and accelerate amortization if debt is retired before the maturity date. As of September 30, 2023 and December 31, 2022, the unamortized balances of these deferred financing costs are $3,702 and $5,850, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mortgage Loans Our securitization transactions (the “Securitizations” or the “mortgage loans”) are collateralized by certain homes owned by the respective Borrower Entities. We utilize the proceeds from our Securitizations to fund: (i) repayments of then-outstanding indebtedness; (ii) initial deposits into Securitization reserve accounts; (iii) closing costs in connection with the mortgage loans; and (iv) general costs associated with our operations. The following table sets forth a summary of our mortgage loan indebtedness as of September 30, 2023 and December 31, 2022: Outstanding Principal Balance (1) Origination Maturity Date (2) Maturity Date if Fully Extended (3) Interest (4) Range of Spreads (5) September 30, December 31, 2022 IH 2017-1 (6) April 28, June 9, June 9, 4.23% N/A $ 991,674 $ 992,695 IH 2018-4 (7) November 7, January 9, January 9, 6.66% 115-145 bps 647,118 661,029 Total Securitizations 1,638,792 1,653,724 Less: deferred financing costs, net (6,819) (7,929) Total $ 1,631,973 $ 1,645,795 (1) Outstanding principal balance is net of discounts and does not include deferred financing costs, net. (2) Represents the maturity dates for all extension options that have been exercised for the mortgage loans. (3) Represents the maturity date if we exercise each of the remaining one year extension options available, which are subject to certain conditions being met. (4) IH 2017-1 bears interest at a fixed rate of 4.23% per annum, equal to the market determined pass-through rate payable on the certificates including applicable servicing fees. Effective July 3, 2023, the interest rate for IH 2018-4 is based on the weighted average spread over Term SOFR adjusted for an 0.11% credit spread adjustment. As of September 30, 2023, Term SOFR was 5.32%. (5) Range of spreads is based on outstanding principal balances as of September 30, 2023. (6) Net of unamortized discount of $1,320 and $1,584 as of September 30, 2023 and December 31, 2022, respectively. (7) The initial maturity term of IH 2018-4 is two years, subject to five, one year extension options at the Borrower Entity’s discretion (provided that there is no continuing event of default under the mortgage loan agreement and the Borrower Entity obtains and delivers to the lender a replacement interest rate cap agreement from an approved counterparty within the required timeframe). Our IH 2018-4 mortgage loan has exercised the third extension option. The maturity date above reflects all extensions that have been exercised. Securitization Transactions For each Securitization transaction, the Borrower Entity executed a loan agreement with a third party lender. IH 2018-4 originally consisted of six floating rate components. The two year initial terms are individually subject to five, one year extension options at the Borrower Entity’s discretion. Such extensions are available provided there is no continuing event of default under the respective mortgage loan agreement and the Borrower Entity obtains and delivers a replacement interest rate cap agreement from an approved counterparty within the required timeframe to the lender. IH 2017-1 is a 10 year, fixed rate mortgage loan comprised of two components. Certificates issued by the trust in connection with Component A of IH 2017-1 benefit from FNMA’s guaranty of timely payment of principal and interest. Each mortgage loan is secured by a pledge of the equity in the assets of the respective Borrower Entities, as well as first-priority mortgages on the underlying properties and a grant of security interests in all of the related personal property. As of September 30, 2023 and December 31, 2022, a total of 10,617 and 10,712 homes, respectively, with a gross book value of $2,350,078 and $2,355,083, respectively, and a net book value of $1,799,650 and $1,859,614, respectively, are pledged pursuant to the mortgage loans. Each Borrower Entity has the right, subject to certain requirements and limitations outlined in the respective loan agreements, to substitute properties. We are obligated to make monthly payments of interest for each mortgage loan. Transactions with Trusts Concurrent with the execution of each mortgage loan agreement, the respective third party lender sold each loan it originated to individual depositor entities (the “Depositor Entities”) who subsequently transferred each loan to Securitization-specific trust entities (the “Trusts”). The Depositor Entities for our currently outstanding Securitizations are wholly owned subsidiaries. We accounted for the transfers of the individual Securitizations from the wholly owned Depositor Entities to the respective Trusts as sales under ASC 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 classes of certificates which mirror the components of the individual loans (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 and used 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 Certificates we retained in connection with Securitizations or purchased at a later date. The Trusts are structured as pass-through entities that receive interest payments 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 certain certificates of the Trusts held by us (discussed below) and determined that they do not create a more than insignificant variable interest in the Trusts. Additionally, the retained certificates do not provide us with any ability to direct activities that could impact the Trusts’ economic performance. Therefore, we do not consolidate the Trusts. Retained Certificates As the Trusts made Certificates available for sale to both domestic and foreign investors, sponsors of the mortgage loans are required to retain a portion of the risk that represents a material net economic interest in each loan pursuant to Regulation RR (the “Risk Retention Rules”) under the Securities Exchange Act of 1934, as amended. As such, loan sponsors are required to retain a portion of the credit risk that represents not less than 5% of the aggregate fair value of the loan as of the closing date. IH 2017-1 issued Class B certificates, which are restricted certificates that were made available exclusively to INVH LP in order to comply with the Risk Retention Rules. The Class B certificates bear a stated annual interest rate of 4.23%, including applicable servicing fees. For IH 2018-4, we retain 5% of each class of certificates to meet the Risk Retention Rules. These retained certificates accrue interest at a floating rate of Term SOFR plus a spread ranging from 1.15% to 1.45%. The retained certificates, net of discount, total $86,617 and $86,980 as of September 30, 2023 and December 31, 2022, respectively, and are classified as held to maturity investments and recorded in other assets, net on the condensed consolidated balance sheets (see Note 6). Loan Covenants The general terms that apply to all of the mortgage loans require each Borrower Entity to maintain compliance with certain affirmative and negative covenants. Affirmative covenants include each Borrower Entity’s, and certain of their respective affiliates’, compliance with (i) licensing, permitting, and legal requirements specified in the mortgage loan agreements, (ii) organizational requirements of the jurisdictions in which they are organized, (iii) federal and state tax laws, and (iv) books and records requirements specified in the respective mortgage loan agreements. Negative covenants include each Borrower Entity’s, and certain of their affiliates’, compliance with limitations surrounding (i) the amount of each Borrower Entity’s indebtedness and the nature of their investments, (ii) the execution of transactions with affiliates, (iii) the Manager, (iv) the nature of each Borrower Entity’s business activities, and (v) the required maintenance of specified cash reserves. As of September 30, 2023, and through the date our condensed consolidated financial statements were issued, we believe each Borrower Entity is in compliance with all affirmative and negative covenants for the mortgage loans. Prepayments For the mortgage loans, prepayments of amounts owed by us are generally not permitted under the terms of the respective mortgage loan agreements unless such prepayments are made pursuant to the voluntary election or 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 or two year anniversary of the closing dates of each of the mortgage loans except for IH 2017-1. For IH 2017-1, prepayments on or before December 2026 will require a yield maintenance premium. For the nine months ended September 30, 2023 and 2022, we made voluntary and mandatory prepayments of $15,196 and $849,712, respectively, under the terms of the mortgage loan agreements. For the nine months ended September 30, 2022, prepayments included the full repayment of the 2018-2 and 2018-3 mortgage loans. Secured Term Loan On June 7, 2019, 2019-1 IH Borrower LP, a consolidated subsidiary (“2019-1 IH Borrower” and one of our Borrower Entities), entered into a 12 year loan agreement with a life insurance company (the “Secured Term Loan”). The Secured Term Loan bears interest at a fixed rate of 3.59%, including applicable servicing fees, for the first 11 years and bears interest at a floating rate based on a spread of 147 bps, including applicable servicing fees, over one month LIBOR for the twelfth year (subject to certain adjustments as outlined in the loan agreement, including conversion by the lender to a successor variable rate once LIBOR is discontinued). The Secured Term Loan is secured by first priority mortgages on a portfolio of single-family rental properties as well as a first priority pledge of the equity interests of 2019-1 IH Borrower. We utilized the proceeds from the Secured Term Loan to fund: (i) repayments of then-outstanding indebtedness; (ii) initial deposits into the Secured Term Loan’s reserve accounts; (iii) transaction costs related to the closing of the Secured Term Loan; and (iv) general corporate purposes. The following table sets forth a summary of our Secured Term Loan indebtedness as of September 30, 2023 and December 31, 2022: Maturity Interest (1) September 30, December 31, 2022 Secured Term Loan June 9, 2031 3.59% $ 403,129 $ 403,363 Deferred financing costs, net (1,669) (1,833) Secured Term Loan, net $ 401,460 $ 401,530 (1) The Secured Term Loan bears interest at a fixed rate of 3.59% per annum including applicable servicing fees for the first 11 years and for the twelfth year bears interest at a floating rate based on a spread of 147 bps over a comparable or successor rate to one month LIBOR as provided for in our loan agreement, including applicable servicing fees, subject to certain adjustments as outlined in the loan agreement. Interest payments are made monthly. Collateral As of September 30, 2023 and December 31, 2022, the Secured Term Loan’s collateral pool contains 3,332 and 3,334 homes, respectively, with a gross book value of $825,513 and $813,543, respectively, and a net book value of $679,394 and $688,625, respectively. 2019-1 IH Borrower has the right, subject to certain requirements and limitations outlined in the loan agreement, to substitute properties representing up to 20% of the collateral pool annually, and to substitute properties representing up to 100% of the collateral pool over the life of the Secured Term Loan. In addition, four times after the first anniversary of the closing date, 2019-1 IH Borrower has the right, subject to certain requirements and limitations outlined in the loan agreement, to execute a special release of collateral representing up to 15% of the then-outstanding principal balance of the Secured Term Loan in order to bring the loan-to-value ratio back in line with the Secured Term Loan’s loan-to-value ratio as of the closing date. Any such special release of collateral would not change the then-outstanding principal balance of the Secured Term Loan, but rather would reduce the number of single-family rental homes included in the collateral pool. Loan Covenants The Secured Term Loan requires 2019-1 IH Borrower to maintain compliance with certain affirmative and negative covenants. Affirmative covenants include 2019-1 IH Borrower’s, and certain of its affiliates’, compliance with (i) licensing, permitting and legal requirements specified in the loan agreement, (ii) organizational requirements of the jurisdictions in which they are organized, (iii) federal and state tax laws, and (iv) books and records requirements specified in the loan agreement. Negative covenants include 2019-1 IH Borrower’s, and certain of its affiliates’, compliance with limitations surrounding (i) the amount of 2019-1 IH Borrower’s indebtedness and the nature of its investments, (ii) the execution of transactions with affiliates, (iii) the Manager, (iv) the nature of 2019-1 IH Borrower’s business activities, and (v) the required maintenance of specified cash reserves. As of September 30, 2023, and through the date our condensed consolidated financial statements were issued, we believe 2019-1 IH Borrower is in compliance with all affirmative and negative covenants for the Secured Term Loan. Prepayments Prepayments of the Secured Term Loan are generally not permitted unless such prepayments are made pursuant to the voluntary election or mandatory provisions specified in the loan agreement. 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 yield maintenance premium if prepayment occurs before June 9, 2030. During the nine months ended September 30, 2023, we made mandatory prepayments of $234 under the terms of the Secured Term Loan agreement. No such prepayments were made during the nine months ended September 30, 2022. Unsecured Notes Our unsecured notes are issued in connection with either an underwritten public offering pursuant to our existing shelf registration statement that automatically became effective upon filing with the SEC in July 2021 and expires in July 2024 or in connection with a private placement transaction with certain institutional investors (collectively, the “Unsecured Notes”). We utilize proceeds from the Unsecured Notes to fund: (i) repayments of then-outstanding indebtedness, including the Securitizations; (ii) closing costs in connection with the Unsecured Notes; and (iii) general costs associated with our operations and other corporate purposes, including acquisitions. Interest on the Unsecured Notes is payable semi-annually in arrears. The following table sets forth a summary of our Unsecured Notes as of September 30, 2023 and December 31, 2022: Interest Rate (1) September 30, December 31, 2022 Total Unsecured Notes, net (2) 2.00% — 5.50% $ 3,329,281 $ 2,538,066 Deferred financing costs, net (25,199) (19,881) Total $ 3,304,082 $ 2,518,185 (1) Represents the range of contractual rates in place as of September 30, 2023. (2) Net of unamortized discount of $20,719 and $11,934 as of September 30, 2023 and December 31, 2022. See “Debt Maturities Schedule” for information about maturity dates for the Unsecured Notes. Debt Issuances On August 2, 2023, in a public offering under our existing shelf registration statement, we issued $450,000 and $350,000 aggregate principal amount of Senior Notes with 5.45% and 5.50% interest rates, respectively, and which mature on August 15, 2030 and August 15, 2033, respectively. On April 5, 2022, in a public offering under our existing shelf registration statement, we issued $600,000 aggregate principal amount of 4.15% Senior Notes which mature on April 15, 2032. Prepayments The Unsecured Notes are redeemable in whole at any time or in part from time to time, at our option, at a redemption price equal to (i) 100% of the principal amount to be redeemed plus accrued and unpaid interest and (ii) a make-whole premium calculated in accordance with the respective loan agreements if the redemption occurs in certain amounts or in certain periods that range from one to three months prior to the maturity date. The privately placed Unsecured Notes require any prepayment to be an amount not less than 5% of the aggregate principal amount then outstanding. Guarantees The Unsecured Notes are fully and unconditionally guaranteed, jointly and severally, by INVH and two of its wholly owned subsidiaries, the General Partner and IH Merger Sub, LLC (“IH Merger Sub”). Prior to the September 17, 2021 execution of a parent guaranty agreement, the privately placed Unsecured Notes were not guaranteed. Loan Covenants The Unsecured Notes issued publicly under our registration statement contain customary covenants, including, among others, limitations on the incurrence of debt; and they include the following financial covenants related to the incurrence of debt: (i) an aggregate debt test; (ii) a debt service test; (iii) a maintenance of total unencumbered assets; and (iv) a secured debt test. The privately placed Unsecured Notes contain customary covenants, including, among others, limitations on distributions, fundamental changes, and transactions with affiliates; and they include the following financial covenants, subject to certain qualifications: (i) a maximum total leverage ratio; (ii) a maximum secured leverage ratio; (iii) a maximum unencumbered leverage ratio; (iv) a minimum fixed charge coverage ratio; and (v) a minimum unsecured interest coverage ratio. The Unsecured Notes contain customary events of default (subject in certain cases to specified cure periods), the occurrence of which would allow the holders of notes to take various actions, including the acceleration of amounts due under the Unsecured Notes. As of September 30, 2023, and through the date our condensed consolidated financial statements were issued, we believe we were in compliance with all affirmative and negative covenants for the Unsecured Notes. Term Loan Facilities and Revolving Facility On December 8, 2020, we entered into an Amended and Restated Revolving Credit and Term Loan Agreement with a syndicate of banks, financial institutions, and institutional lenders for a new credit facility (the “Credit Facility”). The Credit Facility provides $3,500,000 of borrowing capacity and consists of a $1,000,000 revolving facility (the “Revolving Facility”) and a $2,500,000 term loan facility (the “2020 Term Loan Facility”), both of which mature on January 31, 2025, with two six month extension options available. The Revolving Facility also includes borrowing capacity for letters of credit. The 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 2020 Term Loan Facility such that the aggregate amount does not exceed $4,000,000 at any time), subject to certain limitations. On April 18, 2023, we amended the Credit Facility to convert the applicable interest rate from a LIBOR-based index to a Term SOFR-based index. On June 22, 2022, we entered into a Term Loan Agreement with a syndicate of banks for new senior unsecured term loans (the “2022 Term Loan Facility”; and together with the 2020 Term Loan Facility, the “Term Loan Facilities”). The 2022 Term Loan Facility provided $725,000 of borrowing capacity, consisting of a $150,000 initial term loan (the “Initial Term Loan”) and delayed draw term loans totaling $575,000 (the “Delayed Draw Term Loans”) which were fully drawn on December 8, 2022. The Initial Term Loan and the Delayed Draw Term Loans (together, the “2022 Term Loans”) mature on June 22, 2029. The 2022 Term Loan Facility also includes an accordion feature providing the option to increase the size of the 2022 Term Loans or enter into additional incremental 2022 Term Loans, such that the aggregate amount of all 2022 Term Loans does not exceed $950,000 at any time, subject to certain limitations. The following table sets forth a summary of the outstanding principal amounts under the Term Loan Facilities and the Revolving Facility as of September 30, 2023 and December 31, 2022: Maturity Interest September 30, December 31, 2022 2020 Term Loan Facility (1)(2) January 31, 2025 6.42% $ 2,500,000 $ 2,500,000 2022 Term Loan Facility (3) June 22, 2029 6.66% 725,000 725,000 Total Term Loan Facilities 3,225,000 3,225,000 Less: deferred financing costs, net (15,275) (21,433) Term Loan Facilities, net $ 3,209,725 $ 3,203,567 Revolving Facility (1)(2) January 31, 2025 6.31% $ — $ — (1) Interest rates for the 2020 Term Loan Facility and the Revolving Facility are based on Term SOFR adjusted for a 0.10% credit spread adjustment, plus an applicable margin. As of September 30, 2023, the applicable margins were 1.00% and 0.89% for the 2020 Term Loan Facility and the Revolving Facility, respectively, and Term SOFR was 5.32%. (2) If we exercise the two six month extension options, the maturity date will be January 31, 2026. (3) Interest rate for the 2022 Term Loan Facility is based on Term SOFR adjusted for a 0.10% credit spread adjustment, plus the applicable margin. As of September 30, 2023, the applicable margin was 1.24%, and Term SOFR was 5.32%. Interest Rate and Fees As a result of the April 18, 2023 amendment to the Credit Facility, borrowings thereunder bear interest, at our option, at a rate equal to (a) a Term SOFR rate determined by reference to the forward-looking SOFR rate published by Reuters (or a comparable or successor rate as provided for in our loan agreement) for the interest period relevant to such borrowing plus 0.10% credit spread adjustment 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%, (3) the Term SOFR rate that would be payable on such day for a Term SOFR rate loan with a one month interest period plus 1.00%, and (4) 1.00%. Prior to the April 18, 2023 amendment to the Credit Facility, borrowings thereunder bore 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 a comparable or successor rate as provided for in our loan agreement) 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%. Borrowings under the 2022 Term Loan Facility bear interest, at our option, at a rate equal to a margin over either (a) Term SOFR adjusted for an applicable credit spread adjustment (“Adjusted SOFR”) 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) Adjusted SOFR for a one month interest period plus 1.00%. The margins for the Term Loan Facilities and the Revolving Facility as of September 30, 2023 are as follows: Base Rate Loans Adjusted SOFR Rate Loans 2020 Term Loan Facility 0.00% — 0.65% 0.80% — 1.65% 2022 Term Loan Facility 0.15% — 1.20% 1.15% — 2.20% Revolving Facility 0.00% — 0.45% 0.75% — 1.45% The Revolving Facility and the 2022 Term Loan Facility include a sustainability component whereby pricing can improve upon our achievement of certain sustainability ratings, determined via an independent third party evaluation. In addition to paying interest on outstanding principal, we are required to pay certain facility and unused commitment fees. Under the Credit Facility, we are required to pay a facility fee ranging from 0.10% to 0.30%. We are also required to pay customary letter of credit fees. Under the 2022 Term Loan Facility, we were required to pay an unused commitment fee to the lenders equal to the daily unused balance of the Delayed Draw Term Loan commitments at a rate of 0.20% per annum prior to December 8, 2022 when the commitments were fully funded. Prepayments and Amortization No principal reductions are required under the Credit Facility or the 2022 Term Loan Facility. We are permitted to voluntarily repay amounts outstanding under the 2020 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 Term SOFR loans. We are also permitted to voluntarily repay amounts outstanding under the 2022 Term Loan Facility (a) on or prior to the first anniversary of the closing subject to a 2.0% prepayment fee, (b) on or prior to the second anniversary of the closing subject to a 1.0% prepayment fee, and (c) at any time thereafter without premium or penalty. Once repaid, no further borrowings will be permitted under the Term Loan Facilities. Loan Covenants The Credit Facility and the 2022 Term Loan Facility contain 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 our 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 our fiscal year, (v) make changes in the nature of our business and our subsidiaries, and (vi) enter into certain burdensome agreements. The Credit Facility and the 2022 Term Loan Facility also require 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 unsecured interest coverage ratio, and (vi) maximum secured recourse. If at any time we do not have an Investment Grade Rating (defined below), we will also be required to maintain a maximum secured recourse leverage ratio. If an event of default occurs, the lenders under the Credit Facility and the 2022 Term Loan Facility are entitled to take various actions, including the acceleration of amounts due thereunder. As of September 30, 2023, and through the date our condensed consolidated financial statements were issued, we believe we were in compliance with all affirmative and negative covenants for the Credit Facility and the 2022 Term Loan Facility. Guarantees After obtaining the requisite rating on our non-credit enhanced, senior unsecured long term debt as defined in the Credit Facility agreement (the “Investment Grade Rating”), our direct and indirect wholly owned subsidiaries that directly own unencumbered assets (the “Subsidiary Guarantors”) were released from their previous guarantee requirements under the Credit Facility (the “Investment Grade Release”) effective May 5, 2021. Prior to the Investment Grade Release, the obligations under the Credit Facility were guaranteed on a joint and several basis by each Subsidiary Guarantor, subject to certain exceptions. Convertible Senior Notes In connection with the SWH merger, we assumed certain convertible senior notes including $345,000 in aggregate principal amount of 3.50% convertible senior notes due 2022 issued by SWH in January 2017 (the “2022 Convertible Notes”). Interest on the 2022 Convertible Notes was payable semiannually in arrears on January 15th and July 15th of each year, and the 2022 Convertible Notes had an effective interest rate of 5.12% which included the effect of an adjustment to the fair value of the debt in connection with the SWH merger. On January 18, 2022, we settled the $141,490 outstanding principal balance of the 2022 Convertible Notes with the issuance of 6,216,261 shares of our common stock and a cash payment of $271. Debt Maturities Schedule The following table summarizes the contractual maturities of our debt as of September 30, 2023: Year Mortgage Loans (1) Secured Term Loan Unsecured Notes Term Loan Facilities (2) Revolving Facility (2) Total 2023 $ — $ — $ — $ — $ — $ — 2024 647,118 — — — — 647,118 2025 — — — 2,500,000 — 2,500,000 2026 — — — — — — 2027 992,994 — — — — 992,994 Thereafter — 403,129 3,350,000 725,000 — 4,478,129 Total 1,640,112 403,129 3,350,000 3,225,000 — 8,618,241 Less: deferred financing costs, net (6,819) (1,669) (25,199) (15,275) — (48,962) Less: unamortized debt discount (1,320) — (20,719) — — (22,039) Total $ 1,631,973 $ 401,460 $ 3,304,082 $ 3,209,725 $ — $ 8,547,240 (1) The maturity dates of the obligations are reflective of all extensions that have been exercised as of September 30, 2023. If fully extended, we would have no mortgage loans maturing before 2026. Such extensions are available provided there is no continuing event of default under the respective mortgage loan agreement and the Borrower Entity obtains and delivers to the lender a replacement interest rate cap agreement from an approved counterparty within the required timeframe. (2) If we exercise the two six month extension options, the maturity date for the 2020 Term Loan Facility and the Revolving Facility will be January 31, 2026. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments From time to time, we enter into derivative instruments 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 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 did not elect to designate as hedges. Designated Hedges We have entered into various interest rate swap agreements, which are used to hedge the variable cash flows associated with variable-rate interest payments. Each of our swap agreements is designated for hedge accounting purposes and is currently indexed to one month Term SOFR. On April 18, 2023, we completed a series of transactions related to certain of our variable rate debt and derivative agreements that were originally indexed to LIBOR to effectuate a transition to Term SOFR. While the original agreements provided for a prescribed transition to an alternate rate, this series of transactions amended or modified our Credit Facility and all of our LIBOR-indexed interest rate swap agreements such that each agreement is now indexed to Term SOFR. See Note 2 for additional information about reference rate reform and our transition from LIBOR. Changes in the fair value of these swaps are recorded in other comprehensive income and are subsequently reclassified into earnings in the period in which the hedged forecasted transactions affect earnings. The table below summarizes our interest rate swap instruments as of September 30, 2023: Agreement Date Forward Maturity Strike Index Notional April 18, 2023 March 31, 2023 January 31, 2025 2.80% One month Term SOFR $ 400,000 April 18, 2023 March 31, 2023 November 30, 2024 2.83% One month Term SOFR 400,000 April 18, 2023 April 15, 2023 November 30, 2024 2.78% One month Term SOFR 400,000 April 18, 2023 April 15, 2023 February 28, 2025 2.79% One month Term SOFR 400,000 April 18, 2023 April 15, 2023 June 9, 2025 2.94% One month Term SOFR 325,000 April 18, 2023 April 15, 2023 June 9, 2025 2.95% One month Term SOFR 595,000 April 18, 2023 April 15, 2023 July 9, 2025 2.83% One month Term SOFR 1,100,000 April 18, 2023 April 15, 2023 July 31, 2025 3.08% One month Term SOFR 200,000 March 22, 2023 July 9, 2025 May 31, 2029 2.99% One month Term SOFR 300,000 During the nine months ended September 30, 2022, we terminated interest rate swaps or portions thereof and paid the counterparties $13,292 in connection with these terminations. There were no such terminations during the nine months ended September 30, 2023. During the nine months ended September 30, 2023 and 2022, interest rate swap instruments were used to hedge the variable cash flows associated with existing variable-rate interest payments. 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 12 months, we estimate that $82,542 will be reclassified to earnings as a decrease in interest expense. Non-Designated Hedges Concurrent with entering into certain of the mortgage loan agreements and in connection with previous mergers, we entered into or acquired and maintain interest rate cap agreements with terms and notional amounts equivalent to the terms and amounts of the mortgage loans made by the third party lenders. To the extent that the maturity date of a mortgage loan is extended through an exercise of one or more extension options, a replacement or extension interest rate cap agreement must be executed with terms similar to those associated with the initial interest rate cap agreement and strike prices equal to the greater of the interest rate cap strike price 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 agreement, including all of our rights to payments owed by the counterparties and all other rights, has been pledged as additional collateral for the mortgage loan. Additionally, in certain instances, in order to minimize the cash impact of purchasing required interest rate caps, we simultaneously sell interest rate caps (which have identical terms and notional amounts) such that the purchase price and sales proceeds of the related interest rate caps are intended to offset each other. As of September 30, 2023, the remaining interest rate cap has a strike price of 8.46%. 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 September 30, 2023 and December 31, 2022: Asset Derivatives Liability Derivatives Fair Value as of Fair Value as of Balance September 30, December 31, 2022 Balance September 30, December 31, 2022 Derivatives designated as hedging instruments: Interest rate swaps Other assets $ 134,017 $ 119,157 Other liabilities $ — $ — Derivatives not designated as hedging instruments: Interest rate caps Other assets — 36 Other liabilities — — Total $ 134,017 $ 119,193 $ — $ — Offsetting Derivatives We enter into master netting arrangements, which reduce risk by permitting net settlement of transactions with the same counterparty. The tables below present a gross presentation, the effects of offsetting, and a net presentation of our derivatives as of September 30, 2023 and December 31, 2022: September 30, 2023 Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 134,017 $ — $ 134,017 $ — $ — $ 134,017 Offsetting liabilities: Derivatives $ — $ — $ — $ — $ — $ — December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 119,193 $ — $ 119,193 $ — $ — $ 119,193 Offsetting liabilities: Derivatives $ — $ — $ — $ — $ — $ — Effect of Derivative Instruments on the Condensed Consolidated Statements of Comprehensive Income (Loss) and the Condensed Consolidated Statements of Operations The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the three months ended September 30, 2023 and 2022: Amount of Gain Recognized in OCI on Derivative Location of Gain (Loss) Reclassified from Accumulated OCI into Net Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Income Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Three Months For the Three Months For the Three Months 2023 2022 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 27,845 $ 102,940 Interest expense $ 21,081 $ (9,591) $ 86,736 $ 76,454 Location of Amount of Loss Recognized in Net Income on Derivative For the Three Months 2023 2022 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 1 $ 28 The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the nine months ended September 30, 2023 and 2022: Amount of Gain Recognized in OCI on Derivative Location of Gain (Loss) Reclassified from Accumulated OCI into Net Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Income Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Nine Months For the Nine Months For the Nine Months 2023 2022 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 73,853 $ 316,479 Interest expense $ 52,023 $ (63,837) $ 243,408 $ 225,683 Location of Amount of Loss Recognized in Net Income on Derivative For the Nine Months 2023 2022 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 41 $ 63 Credit-Risk-Related Contingent Features The agreements with our derivative counterparties which govern our interest rate swap agreements 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 September 30, 2023, we were not in a net liability position with any of our derivative counterparties. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity As of September 30, 2023, we have issued 611,958,239 shares of common stock. In addition, we issue OP Units from time to time which, upon vesting, are redeemable for shares of our common stock on a one-for-one basis or, in our sole discretion, cash and are reflected as non-controlling interests on our condensed consolidated balance sheets and statements of equity. As of September 30, 2023, 1,869,483 outstanding OP Units are redeemable. During the three and nine months ended September 30, 2023, we issued 2,069 and 546,857 shares of common stock, respectively. During the three and nine months ended September 30, 2022, we issued 1,050,000 and 10,364,471 shares of common stock, respectively. At the Market Equity Program On December 20, 2021, we entered into distribution agreements with a syndicate of banks (the “Agents” and the “Forward Sellers”), pursuant to which we may sell, from time to time, up to an aggregate sales price of $1,250,000 of our common stock through the Agents and the Forward Sellers (the “2021 ATM Equity Program”). In addition to the issuance of shares of our common stock, the distribution agreements permit us to enter into separate forward sale transactions with certain forward purchasers who may borrow shares from third parties and, through affiliated Forward Sellers, offer a number of shares of our common stock equal to the number of shares of our common stock underlying the particular forward transaction. During the nine months ended September 30, 2022, we sold 2,438,927 shares of our common stock under our 2021 ATM Equity Program, generating net proceeds of $98,367, after giving effect to Agent commissions and other costs totaling $1,633. We did not sell any shares of common stock under the 2021 ATM Equity Program during the three and nine months ended September 30, 2023 or the three months ended September 30, 2022. As of September 30, 2023, $1,150,000 remains available for future offerings under the 2021 ATM Equity Program. Dividends To qualify as a REIT, we are required to distribute annually to our stockholders 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 stockholders that in the aggregate are approximately equal to or exceed our net taxable income in the relevant year. The timing, form, and amount of distributions, if any, to our stockholders, will be at the sole discretion of our board of directors. The following table summarizes our dividends declared from January 1, 2022 through September 30, 2023: Record Date Amount Pay Date Total Amount Declared Q3-2023 August 8, 2023 $ 0.26 August 25, 2023 $ 160,540 Q2-2023 May 10, 2023 0.26 May 26, 2023 159,493 Q1-2023 February 14, 2023 0.26 February 28, 2023 158,453 Q4-2022 November 8, 2022 0.22 November 23, 2022 135,654 Q3-2022 August 9, 2022 0.22 August 26, 2022 135,042 Q2-2022 May 10, 2022 0.22 May 27, 2022 134,744 Q1-2022 February 14, 2022 0.22 February 28, 2022 134,240 On October 19, 2023, our board of directors declared a dividend of $0.26 per share to stockholders of record on November 7, 2023, which is payable on November 22, 2023 (see Note 15). |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation 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 associates and to provide a means whereby our directors, officers, associates, 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 to align their interests with those of our stockholders. Under the Omnibus Incentive Plan, we may issue up to 16,000,000 shares of common stock. Our share-based awards consist of restricted stock units (“RSUs”), which may be time vesting, performance based vesting, or market based vesting, and Outperformance Awards (defined below). Time-vesting RSUs are participating securities for earnings (loss) per share (“EPS”) purposes, and performance and market based RSUs (“PRSUs”) and Outperformance Awards are not. For detailed discussion of RSUs and PRSUs issued prior to January 1, 2023, refer to our Annual Report on Form 10-K for the year ended December 31, 2022. Share-Based Awards The following summarizes our share-based award activity during the nine months ended September 30, 2023. Annual Long Term Incentive Plan (“LTIP”): • Annual LTIP Awards Granted: During the nine months ended September 30, 2023, we granted 776,492 RSUs pursuant to LTIP awards. Each award includes components which vest based on time-vesting conditions, market based vesting conditions, and performance based vesting conditions, each of which is subject to continued employment through the applicable vesting date. LTIP time-vesting RSUs vest in three equal annual installments based on an anniversary date of March 1st. LTIP PRSUs may be earned based on the achievement of certain measures over a three year performance period. The number of PRSUs earned will be determined based on performance achieved during the performance period for each measure at certain threshold, target, or maximum levels and corresponding payout ranges. In general, the LTIP PRSUs are earned after the end of the performance period on the date on which the performance results are certified by our compensation and management development committee (the “Compensation Committee”). All of the LTIP Awards are subject to certain change in control and retirement eligibility provisions that may impact these vesting schedules. • PRSU Results: During the nine months ended September 30, 2023, certain LTIP PRSUs vested and achieved performance in excess of the target level, resulting in the issuance of an additional 188,001 shares of common stock. Such awards are reflected as an increase in the number of awards granted and vested in the table below. Other Award Activity • Other Awards: During the nine months ended September 30, 2023, we granted 50,895 time-vesting RSUs to members of our board of directors, which will fully vest on the date of INVH’s 2024 annual stockholders meeting, s ubject to continued service on the board of directors through such date. During the nine months ended September 30, 2023, we granted 56,562 employment awards in the form of time-vesting RSUs that vest in three equal annual installments based on an anniversary date of the grant date. • Modifications: On February 1, 2023, the vesting conditions of certain outstanding equity awards with a pre-modification aggregate fair value of $3,741 were modified resulting, in an incremental $309 of share-based compensation expense over the remaining service period. During the nine months ended September 30, 2023, $1,941 of previously recognized share-based compensation expense with respect to these awards was reversed, and we began amortizing the modified fair value over the remaining service period. Outperformance Awards On May 1, 2019, the Compensation Committee approved equity based awards in the form of PRSUs and OP Units (the “2019 Outperformance Awards”). The 2019 Outperformance Awards included market based vesting conditions related to absolute and relative total shareholder returns (“TSRs”) over a three year performance period that ended on March 31, 2022. In April 2022, the absolute TSR and the relative TSR were separately calculated, and the Compensation Committee certified achievement of each at maximum achievement. The number of earned 2019 Outperformance Awards was then determined based on the earned dollar value of the awards (at maximum) and the stock price at the performance certification date, resulting in 311,425 earned PRSUs and 498,224 earned OP Units. Earned awards vested 50% on the certification date in April 2022, 25% vested on March 31, 2023, and the remaining 25% will vest on March 31, 2024, subject to continued employment. The estimated fair value of 2019 Outperformance Awards that fully vested during the nine months ended September 30, 2023 was an aggregate $3,164. The aggregate $12,160 grant-date fair value of the 2019 Outperformance Awards that were earned was determined based on Monte-Carlo option pricing models which estimated the probability of achievement of the TSR thresholds. The grant-date fair value is amortized ratably over each vesting period. On April 1, 2022, the Compensation Committee granted equity based awards with market based vesting conditions in the form of PRSUs and OP Units (the “2022 Outperformance Awards” and together with the 2019 Outperformance Awards, the “Outperformance Awards”). The 2022 Outperformance Awards may be earned based on the achievement of rigorous absolute TSR and relative TSR return thresholds over a three year performance period ending March 31, 2025. The 2022 Outperformance Awards provide that upon completion of 75% of the performance period, or June 30, 2024 (the “Interim Measurement Date”), performance achieved as of the Interim Measurement Date will be calculated consistent with the award terms. To the extent performance through the Interim Measurement Date would result in a payout if the performance period had ended on that date, a minimum of 50% of such hypothetical payout amounts will be guaranteed as a minimum level payout for the full performance period, so long as certain minimum levels of relative TSR are achieved for the full performance period. The final award achievement will be equal to the greater of the payouts determined based on the Interim Measurement Date and performance through March 31, 2025. Upon completion of the performance period, the dollar value of the awards earned under the absolute and relative TSR components will be separately calculated, and the number of earned 2022 Outperformance Awards will be determined based on the earned dollar value of the awards and the stock price at the performance certification date. Earned awards will vest 50% on the certification date and 50% on March 31, 2026, subject to continued employment. As of September 30, 2023, 2022 Outperformance Awards with an approximate aggregate $17,500 grant-date fair value have been issued and remain outstanding. The grant-date fair value was determined based on Monte-Carlo option pricing models which estimate the probability of achievement of the TSR thresholds, and it is amortized ratably over each vesting period. Summary of Total Share-Based Awards The following table summarizes activity related to non-vested time-vesting RSUs and PRSUs, other than Outperformance Awards, during the nine months ended September 30, 2023: Time-Vesting Awards PRSUs Total Share-Based Awards (1) Number Weighted Number Weighted Number Weighted Balance, December 31, 2022 509,872 $ 34.54 1,211,571 $ 32.08 1,721,443 $ 32.81 Granted 350,949 31.67 721,001 30.51 1,071,950 30.89 Vested (2) (220,208) (33.06) (505,933) (31.54) (726,141) (32.00) Forfeited / canceled (23,376) (33.82) (57,933) (31.39) (81,309) (32.09) Balance, September 30, 2023 617,237 $ 33.46 1,368,706 $ 31.48 1,985,943 $ 32.09 (1) Total share-based awards excludes Outperformance Awards. (2) All vested share-based awards are included in basic EPS for the periods after each award’s vesting date. The estimated aggregate fair value of share-based awards that fully vested during the nine months ended September 30, 2023 was $23,265. During the nine months ended September 30, 2023, 5,306 RSUs were accelerated pursuant to the terms and conditions of the Omnibus Incentive Plan and related award agreements. Grant-Date Fair Values The grant-date fair values of the time-vesting RSUs and PRSUs with performance condition vesting criteria are generally based on the closing price of our common stock on the grant date. However, the grant-date fair values for share-based awards with market condition vesting criteria are based on Monte-Carlo option pricing models. The following table summarizes the significant inputs utilized in these models for such awards granted or modified during the nine months ended September 30, 2023: For the Nine Months Ended September 30, 2023 Expected volatility (1) 20.5% — 30.0% Risk-free rate 4.31% — 4.62% Expected holding period (years) 1.00 — 2.84 (1) Expected volatility was estimated based on the historical volatility of INVH’s realized returns and of the applicable index. Summary of Total Share-Based Compensation Expense During the three and nine months ended September 30, 2023 and 2022, we recognized share-based compensation expense as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 General and administrative $ 7,099 $ 6,169 $ 16,261 $ 17,584 Property management expense 1,830 1,761 5,232 4,981 Total $ 8,929 $ 7,930 $ 21,493 $ 22,565 As of September 30, 2023, there is $42,284 of unrecognized share-based compensation expense related to non-vested share-based awards which is expected to be recognized over a weighted average period of 1.84 years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe carrying amounts of restricted cash, certain components of other assets, accounts payable and accrued expenses, resident security deposits, and certain components of other liabilities approximate fair value due to the short maturity of these amounts. Our interest rate swap agreements, interest rate cap agreements, and investments in equity securities with a readily determinable fair value are 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 8 for the details of the condensed consolidated balance sheet classification and the fair values for the interest rate caps and swaps. The fair values of our investments in equity securities with a readily determinable fair value are classified as Level 1 in the fair value hierarchy. For additional information related to our investments in equity securities as of September 30, 2023 and December 31, 2022, refer to Note 6. Recurring Fair Value Measurements The following table displays the carrying values and fair values of financial instruments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Assets carried at historical cost on the condensed consolidated balance sheets: Investments in debt securities (1) Level 2 $ 86,617 $ 83,111 $ 86,980 $ 84,992 Liabilities carried at historical cost on the condensed consolidated balance sheets: Unsecured Notes — public offering (2) Level 1 $ 3,029,281 $ 2,546,147 $ 2,238,066 $ 1,798,658 Mortgage loans (3) Level 2 1,638,792 1,550,094 1,653,724 1,588,550 Unsecured Notes — private placement (4) Level 2 300,000 225,582 300,000 228,726 Secured Term Loan (5) Level 3 403,129 348,818 403,363 356,557 Term Loan Facilities (6) Level 3 3,225,000 3,228,291 3,225,000 3,233,677 (1) The carrying values of investments in debt securities are shown net of discount. (2) The carrying value of the Unsecured Notes — public offering includes $20,719 and $11,934 of unamortized discount and excludes $23,979 and $18,534 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (3) The carrying values of the mortgage loans include $1,320 and $1,584 of unamortized discount and exclude $6,819 and $7,929 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (4) The carrying value of the Unsecured Notes — private placement excludes $1,220 and $1,347 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (5) The carrying value of the Secured Term Loan excludes $1,669 and $1,833 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (6) The carrying values of the Term Loan Facilities exclude $15,275 and $21,433 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. We value our Unsecured Notes — public offering using quoted market prices for each underlying issuance, a Level 1 price within the fair value hierarchy. The fair values of our investments in debt securities, Unsecured Notes — private placement, and mortgage loans, which are classified as Level 2 in the fair value hierarchy, are estimated based on market bid prices of comparable instruments at period end. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. Availability of secondary market activity and consistency of pricing from third-party sources impacts our ability to classify securities as Level 2 or Level 3. The following table displays the significant unobservable inputs used to develop our Level 3 fair value measurements as of September 30, 2023: Quantitative Information about Level 3 Fair Value Measurement (1) Fair Value Valuation Technique Unobservable Input Rate Secured Term Loan $ 348,818 Discounted Cash Flow Effective Rate 5.76% Term Loan Facilities 3,228,291 Discounted Cash Flow Effective Rate 5.00% — 6.77% (1) Our Level 3 fair value instruments require interest only payments. Nonrecurring Fair Value Measurements Our assets measured at fair value on a nonrecurring basis are those assets for which we have recorded impairments. Single-Family Residential Properties The single-family residential properties for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below: For the Three Months For the Nine Months 2023 2022 2023 2022 Investments in single-family residential properties, net held for sale (Level 3): Pre-impairment amount $ 567 $ 125 $ 1,606 $ 861 Total impairments (83) (101) (342) (238) Fair value $ 484 $ 24 $ 1,264 $ 623 We did not record any impairments for our investments in single-family residential properties, net held for use during the three and nine months ended September 30, 2023 and 2022. For additional information related to our single-family residential properties as of September 30, 2023 and December 31, 2022, refer to Note 3. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic and diluted EPS are calculated as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 (in thousands, except share and per share data) Numerator: Net income available to common stockholders — basic and diluted $ 131,637 $ 79,032 $ 389,406 $ 282,242 Denominator: Weighted average common shares outstanding — basic 612,000,811 610,845,820 611,849,302 609,212,132 Effect of dilutive securities: Incremental shares attributed to non-vested share-based awards 1,579,231 1,801,768 1,305,739 1,529,591 Weighted average common shares outstanding — diluted 613,580,042 612,647,588 613,155,041 610,741,723 Net income per common share — basic $ 0.22 $ 0.13 $ 0.64 $ 0.46 Net income per common share — diluted $ 0.21 $ 0.13 $ 0.64 $ 0.46 Incremental shares attributed to non-vested share-based awards are excluded from the computation of diluted EPS when they are anti-dilutive. Because their inclusion would have been anti-dilutive, incremental shares attributed to non-vested share-based awards are excluded from the denominator. Anti-dilutive shares total 12,501 and zero for the three months ended September 30, 2023 and 2022, respectively, and 4,167 and 21,254 f or the nine months ended September 30, 2023 and 2022, respectively. For the three and nine months ended September 30, 2023 and 2022, vested OP Units have been excluded from the computation of EPS because all income attributable to such vested OP Units has been recorded as non-controlling interest and thus excluded from net income available to common stockholders. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax We account for income taxes under the asset and liability method. For our taxable REIT subsidiaries (“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 September 30, 2023 and December 31, 2022, we have not recorded any deferred tax assets and liabilities or unrecognized tax benefits. We do not anticipate a significant change in unrecognized tax benefits within the next 12 months. We have sold assets that were either subject to state and local income taxes or Section 337(d) of the Internal Revenue Code of 1986, as amended, or were held by TRSs. These transactions resulted in $60 and $73 of current income tax expense for each of the three months ended September 30, 2023 and 2022, respectively, and resulted in $76 and $235 of current income tax expense for the nine months ended September 30, 2023 and 2022, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The following table sets forth our fixed lease payment commitments as a lessee as of September 30, 2023, for the periods below: Year Operating Finance Remainder of 2023 $ 1,154 $ 782 2024 4,544 1,372 2025 3,157 621 2026 1,940 577 2027 1,264 314 Thereafter 429 — Total lease payments 12,488 3,666 Less: imputed interest (660) (227) Total lease liability $ 11,828 $ 3,439 The components of lease expense for the three and nine months ended September 30, 2023 and 2022 are as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 Operating lease cost: Fixed lease cost $ 793 $ 800 $ 2,514 $ 2,466 Variable lease cost 444 384 1,174 1,133 Total operating lease cost $ 1,237 $ 1,184 $ 3,688 $ 3,599 Finance lease cost: Amortization of ROU assets $ 717 $ 675 $ 2,011 $ 2,055 Interest on lease liabilities 106 51 247 178 Total finance lease cost $ 823 $ 726 $ 2,258 $ 2,233 New-Build Commitments We have entered into binding purchase agreements with certain homebuilders for the purchase of 1,931 homes over the next seven years. Estimated remaining commitments under these agreements total approximately $680,000 as of September 30, 2023. Insurance Policies Pursuant to the terms of certain of our loan agreements (see Note 7), 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. As of September 30, 2023, there are no material contingent liabilities related to uninsured losses with respect to our properties. Legal Matters We are subject to various legal proceedings and claims that arise in the ordinary course of our business as well as congressional and regulatory inquiries and engagements. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In connection with the preparation of the accompanying condensed consolidated financial statements, we have evaluated events and transactions occurring after September 30, 2023, for potential recognition or disclosure. Dividend Declaration On October 19, 2023, our board of directors declared a dividend of $0.26 per share to stockholders of record on November 7, 2023, which is payable on November 22, 2023. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 (the “SEC”) 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 consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. These condensed consolidated financial statements include the accounts of INVH and its consolidated subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments that 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 and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. We consolidate wholly owned subsidiaries and entities we are otherwise able to control in accordance with GAAP. We evaluate each investment entity that is not wholly owned to determine whether to follow the variable interest entity (“VIE”) or the voting interest entity (“VOE”) model. Once the appropriate consolidation model is identified, we then evaluate whether the entity should be consolidated. Under the VIE model, we consolidate an investment if we have control to direct the activities of the entity and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Under the VOE model, we consolidate an investment if (1) we control the investment through ownership of a majority voting interest if the investment is not a limited partnership or (2) we control the investment through our ability to remove the other partners in the investment, at our discretion, when the investment is a limited partnership. Based on these evaluations, we account for each of the investments in joint ventures described in Note 5 using the equity method. Our initial investments in the joint ventures are recorded at cost, except for any such interest initially recorded at fair value in connection with a business combination. The investments in these joint ventures are subsequently adjusted for our proportionate share of net earnings or losses and other comprehensive income or loss, cash contributions made and distributions received, and other adjustments, as appropriate. Distributions of operating profit from the joint ventures are reported as part of operating activities while distributions related to a capital transaction, such as a refinancing transaction or sale, are reported as investing activities on our condensed consolidated statements of cash flows. When events or circumstances indicate that our investments in unconsolidated joint ventures may not be recoverable, we assess the investments for and recognize other-than-temporary impairment. Non-controlling interests represent the OP Units not owned by INVH, including any OP Units resulting from vesting and conversion of units granted in connection with certain share-based compensation awards. Non-controlling interests are presented as a separate component of equity on the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022, and the condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 include an allocation of the net income attributable to the non-controlling interest holders. OP Units are redeemable for shares of our common stock on a one-for-one basis or, in our sole discretion, cash, and redemptions of OP Units are accounted for as a reduction in non-controlling interests with an offset to stockholders’ equity based on the pro rata number of OP Units redeemed. |
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. Reclassifications We reclassified $14,340 of investments in equity securities for the nine months ended September 30, 2022 from other investing activities on the condensed consolidated statement of cash flows to a separate cash flow line item to conform to our current presentation. This reclassification had no effect on the total reported investing activities on the condensed consolidated statement of cash flows for the nine months ended September 30, 2022. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which refines the scope of Topic 848 and clarifies some of its guidance. ASU 2020-04 provides temporary optional guidance that provides transition relief for reference rate reform, including optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships, and other transactions that reference the London Interbank Offer Rate (“LIBOR”) or a reference rate that is expected to be discontinued as a result of reference rate reform if certain criteria are met. ASU 2020-04 is effective upon issuance, and the provisions generally can be applied prospectively as of January 1, 2020 through December 31, 2024 (as extended by the FASB in December 2022). In certain cases, we have elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. We have also elected to apply practical expedients related to contract modifications, changes in critical terms, and updates to the designated hedged risk(s) as qualifying changes are made to applicable debt and derivative instruments. Application of these expedients preserves the presentation of derivatives contracts consistent with past presentation. On April 18, 2023, we completed a series of transactions related to certain of our variable rate debt and derivative agreements that were originally indexed to LIBOR to effectuate a transition to the Secured Overnight Financing Rate |
Investments in Single-Family _2
Investments in Single-Family Residential Properties (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Real Estate [Abstract] | |
Schedule of Property Carrying Amount | The following table sets forth the net carrying amount associated with our properties by component: September 30, December 31, 2022 Land $ 4,907,452 $ 4,800,110 Single-family residential property 15,915,306 15,228,631 Capital improvements 563,024 548,700 Equipment 126,939 123,494 Total gross investments in the properties 21,512,721 20,700,935 Less: accumulated depreciation (4,112,685) (3,670,561) Investments in single-family residential properties, net $ 17,400,036 $ 17,030,374 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheets that sum to the total of such amounts shown in the condensed consolidated statements of cash flows: September 30, December 31, 2022 Cash and cash equivalents $ 762,638 $ 262,870 Restricted cash 217,253 191,057 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 979,891 $ 453,927 |
Schedule of Restricted Cash | The balances of our restricted cash accounts, as of September 30, 2023 and December 31, 2022, are set forth in the table below. As of September 30, 2023 and December 31, 2022, no amounts were funded to the insurance accounts as the conditions specified in the mortgage loan and Secured Term Loan agreements that require such funding did not exist. September 30, December 31, 2022 Resident security deposits $ 180,450 $ 175,829 Collections 12,456 7,415 Property taxes 18,747 2,717 Letters of credit 2,612 2,109 Capital expenditures 2,297 2,297 Special and other reserves 691 690 Total $ 217,253 $ 191,057 |
Investments In Unconsolidated_2
Investments In Unconsolidated Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table summarizes our investments in unconsolidated joint ventures, which are accounted for using the equity method model of accounting, as of September 30, 2023 and December 31, 2022: Number of Properties Owned Carrying Value Ownership Percentage September 30, December 31, 2022 September 30, December 31, 2022 Pathway Property Company (1) 100.0% 473 340 $ 125,613 $ 131,542 2020 Rockpoint JV (1) 20.0% 2,609 2,610 64,745 70,103 FNMA (2) 10.0% 442 488 35,799 46,151 Pathway Operating Company (3) 15.0% N/A N/A 20,909 22,011 2022 Rockpoint JV (1) 16.7% 132 132 10,964 10,764 Total $ 258,030 $ 280,571 (1) Owns homes in markets within the Western United States, Southeast United States, Florida, and Texas. (2) Owns homes within the Western United States. (3) Represents an investment in an operating company that provides a technology platform and asset management services. |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | As of September 30, 2023 and December 31, 2022, the balances in other assets, net are as follows: September 30, December 31, 2022 Derivative instruments (Note 8) $ 134,017 $ 119,193 Amounts deposited and held by others (Note 14) 95,770 97,709 Investments in debt securities, net 86,617 86,980 Rent and other receivables, net 58,874 54,091 Investments in equity securities 55,136 22,413 Prepaid expenses 43,333 41,972 Held for sale assets (1) 35,778 29,842 Corporate fixed assets, net 24,460 24,484 ROU lease assets — operating and finance, net 13,723 16,534 Deferred financing costs, net 3,702 5,850 Other 18,624 14,561 Total $ 570,034 $ 513,629 |
Schedule of Future Minimum Lease Payments | Future minimum rental revenues and other property income under leases on our single-family residential properties in place as of September 30, 2023 are as follows: Year Lease Payments Remainder of 2023 $ 526,668 2024 1,002,245 2025 135,970 2026 — 2027 — Thereafter — Total $ 1,664,883 |
Schedule of Investments in Equity Securities | As of September 30, 2023 and December 31, 2022, the values of our investments in equity securities are as follows: September 30, December 31, 2022 Investments without a readily determinable fair value $ 54,068 $ 21,500 Investments with a readily determinable fair value 1,068 913 Total $ 55,136 $ 22,413 |
Schedule of Gain (Loss) Equity Securities | The components of gains (losses) on investments in equity securities, net as of three and nine months ended September 30, 2023 and 2022 are as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 Net losses recognized on investments sold during the reporting period — with a readily determinable value $ — $ — $ — $ (1,452) Net unrealized gains (losses) on investments still held at the reporting date — with a readily determinable fair value (499) (796) 113 (2,548) Total $ (499) $ (796) $ 113 $ (4,000) |
Schedule of Supplemental Information Related to Leases | The following table presents supplemental information related to leases into which we have entered as a lessee as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Operating Finance Operating Finance Other assets $ 9,920 $ 3,803 $ 12,862 $ 3,672 Other liabilities (Note 14) 11,828 3,439 14,925 3,483 Weighted average remaining lease term 3.2 years 2.4 years 3.0 years 1.4 years Weighted average discount rate 3.3% 4.6% 3.3% 4.0% |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Instrument [Line Items] | |
Schedule of Unsecured Notes | The following table sets forth a summary of our Unsecured Notes as of September 30, 2023 and December 31, 2022: Interest Rate (1) September 30, December 31, 2022 Total Unsecured Notes, net (2) 2.00% — 5.50% $ 3,329,281 $ 2,538,066 Deferred financing costs, net (25,199) (19,881) Total $ 3,304,082 $ 2,518,185 (1) Represents the range of contractual rates in place as of September 30, 2023. (2) Net of unamortized discount of $20,719 and $11,934 as of September 30, 2023 and December 31, 2022. See “Debt Maturities Schedule” for information about maturity dates for the Unsecured Notes. |
Schedule of Credit Facility | The following table sets forth a summary of the outstanding principal amounts under the Term Loan Facilities and the Revolving Facility as of September 30, 2023 and December 31, 2022: Maturity Interest September 30, December 31, 2022 2020 Term Loan Facility (1)(2) January 31, 2025 6.42% $ 2,500,000 $ 2,500,000 2022 Term Loan Facility (3) June 22, 2029 6.66% 725,000 725,000 Total Term Loan Facilities 3,225,000 3,225,000 Less: deferred financing costs, net (15,275) (21,433) Term Loan Facilities, net $ 3,209,725 $ 3,203,567 Revolving Facility (1)(2) January 31, 2025 6.31% $ — $ — (1) Interest rates for the 2020 Term Loan Facility and the Revolving Facility are based on Term SOFR adjusted for a 0.10% credit spread adjustment, plus an applicable margin. As of September 30, 2023, the applicable margins were 1.00% and 0.89% for the 2020 Term Loan Facility and the Revolving Facility, respectively, and Term SOFR was 5.32%. (2) If we exercise the two six month extension options, the maturity date will be January 31, 2026. (3) Interest rate for the 2022 Term Loan Facility is based on Term SOFR adjusted for a 0.10% credit spread adjustment, plus the applicable margin. As of September 30, 2023, the applicable margin was 1.24%, and Term SOFR was 5.32%. |
Schedule of Credit Facility Margins - Credit Rating Based Pricing Grid | The margins for the Term Loan Facilities and the Revolving Facility as of September 30, 2023 are as follows: Base Rate Loans Adjusted SOFR Rate Loans 2020 Term Loan Facility 0.00% — 0.65% 0.80% — 1.65% 2022 Term Loan Facility 0.15% — 1.20% 1.15% — 2.20% Revolving Facility 0.00% — 0.45% 0.75% — 1.45% |
Schedule of Maturities of Long-term Debt | The following table summarizes the contractual maturities of our debt as of September 30, 2023: Year Mortgage Loans (1) Secured Term Loan Unsecured Notes Term Loan Facilities (2) Revolving Facility (2) Total 2023 $ — $ — $ — $ — $ — $ — 2024 647,118 — — — — 647,118 2025 — — — 2,500,000 — 2,500,000 2026 — — — — — — 2027 992,994 — — — — 992,994 Thereafter — 403,129 3,350,000 725,000 — 4,478,129 Total 1,640,112 403,129 3,350,000 3,225,000 — 8,618,241 Less: deferred financing costs, net (6,819) (1,669) (25,199) (15,275) — (48,962) Less: unamortized debt discount (1,320) — (20,719) — — (22,039) Total $ 1,631,973 $ 401,460 $ 3,304,082 $ 3,209,725 $ — $ 8,547,240 (1) The maturity dates of the obligations are reflective of all extensions that have been exercised as of September 30, 2023. If fully extended, we would have no mortgage loans maturing before 2026. Such extensions are available provided there is no continuing event of default under the respective mortgage loan agreement and the Borrower Entity obtains and delivers to the lender a replacement interest rate cap agreement from an approved counterparty within the required timeframe. (2) If we exercise the two six month extension options, the maturity date for the 2020 Term Loan Facility and the Revolving Facility will be January 31, 2026. |
Mortgage Loans | |
Debt Instrument [Line Items] | |
Schedule of Unsecured Notes | The following table sets forth a summary of our mortgage loan indebtedness as of September 30, 2023 and December 31, 2022: Outstanding Principal Balance (1) Origination Maturity Date (2) Maturity Date if Fully Extended (3) Interest (4) Range of Spreads (5) September 30, December 31, 2022 IH 2017-1 (6) April 28, June 9, June 9, 4.23% N/A $ 991,674 $ 992,695 IH 2018-4 (7) November 7, January 9, January 9, 6.66% 115-145 bps 647,118 661,029 Total Securitizations 1,638,792 1,653,724 Less: deferred financing costs, net (6,819) (7,929) Total $ 1,631,973 $ 1,645,795 (1) Outstanding principal balance is net of discounts and does not include deferred financing costs, net. (2) Represents the maturity dates for all extension options that have been exercised for the mortgage loans. (3) Represents the maturity date if we exercise each of the remaining one year extension options available, which are subject to certain conditions being met. (4) IH 2017-1 bears interest at a fixed rate of 4.23% per annum, equal to the market determined pass-through rate payable on the certificates including applicable servicing fees. Effective July 3, 2023, the interest rate for IH 2018-4 is based on the weighted average spread over Term SOFR adjusted for an 0.11% credit spread adjustment. As of September 30, 2023, Term SOFR was 5.32%. (5) Range of spreads is based on outstanding principal balances as of September 30, 2023. (6) Net of unamortized discount of $1,320 and $1,584 as of September 30, 2023 and December 31, 2022, respectively. (7) The initial maturity term of IH 2018-4 is two years, subject to five, one year extension options at the Borrower Entity’s discretion (provided that there is no continuing event of default under the mortgage loan agreement and the Borrower Entity obtains and delivers to the lender a replacement interest rate cap agreement from an approved counterparty within the required timeframe). Our IH 2018-4 mortgage loan has exercised the third extension option. The maturity date above reflects all extensions that have been exercised. |
Secured Term Loan | |
Debt Instrument [Line Items] | |
Schedule of Unsecured Notes | The following table sets forth a summary of our Secured Term Loan indebtedness as of September 30, 2023 and December 31, 2022: Maturity Interest (1) September 30, December 31, 2022 Secured Term Loan June 9, 2031 3.59% $ 403,129 $ 403,363 Deferred financing costs, net (1,669) (1,833) Secured Term Loan, net $ 401,460 $ 401,530 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Swap Instruments | The table below summarizes our interest rate swap instruments as of September 30, 2023: Agreement Date Forward Maturity Strike Index Notional April 18, 2023 March 31, 2023 January 31, 2025 2.80% One month Term SOFR $ 400,000 April 18, 2023 March 31, 2023 November 30, 2024 2.83% One month Term SOFR 400,000 April 18, 2023 April 15, 2023 November 30, 2024 2.78% One month Term SOFR 400,000 April 18, 2023 April 15, 2023 February 28, 2025 2.79% One month Term SOFR 400,000 April 18, 2023 April 15, 2023 June 9, 2025 2.94% One month Term SOFR 325,000 April 18, 2023 April 15, 2023 June 9, 2025 2.95% One month Term SOFR 595,000 April 18, 2023 April 15, 2023 July 9, 2025 2.83% One month Term SOFR 1,100,000 April 18, 2023 April 15, 2023 July 31, 2025 3.08% One month Term SOFR 200,000 March 22, 2023 July 9, 2025 May 31, 2029 2.99% One month Term SOFR 300,000 |
Summary of Derivative Financial Instruments, Fair Value and Location in 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 September 30, 2023 and December 31, 2022: Asset Derivatives Liability Derivatives Fair Value as of Fair Value as of Balance September 30, December 31, 2022 Balance September 30, December 31, 2022 Derivatives designated as hedging instruments: Interest rate swaps Other assets $ 134,017 $ 119,157 Other liabilities $ — $ — Derivatives not designated as hedging instruments: Interest rate caps Other assets — 36 Other liabilities — — Total $ 134,017 $ 119,193 $ — $ — |
Summary of Offsetting Derivative Assets | The tables below present a gross presentation, the effects of offsetting, and a net presentation of our derivatives as of September 30, 2023 and December 31, 2022: September 30, 2023 Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 134,017 $ — $ 134,017 $ — $ — $ 134,017 Offsetting liabilities: Derivatives $ — $ — $ — $ — $ — $ — December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 119,193 $ — $ 119,193 $ — $ — $ 119,193 Offsetting liabilities: Derivatives $ — $ — $ — $ — $ — $ — |
Summary of Offsetting Derivative Liabilities | The tables below present a gross presentation, the effects of offsetting, and a net presentation of our derivatives as of September 30, 2023 and December 31, 2022: September 30, 2023 Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 134,017 $ — $ 134,017 $ — $ — $ 134,017 Offsetting liabilities: Derivatives $ — $ — $ — $ — $ — $ — December 31, 2022 Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 119,193 $ — $ 119,193 $ — $ — $ 119,193 Offsetting liabilities: Derivatives $ — $ — $ — $ — $ — $ — |
Summary of Derivative Instruments, Gain (Loss) | The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the three months ended September 30, 2023 and 2022: Amount of Gain Recognized in OCI on Derivative Location of Gain (Loss) Reclassified from Accumulated OCI into Net Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Income Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Three Months For the Three Months For the Three Months 2023 2022 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 27,845 $ 102,940 Interest expense $ 21,081 $ (9,591) $ 86,736 $ 76,454 Location of Amount of Loss Recognized in Net Income on Derivative For the Three Months 2023 2022 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 1 $ 28 The tables below present the effect of our derivative financial instruments in the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the nine months ended September 30, 2023 and 2022: Amount of Gain Recognized in OCI on Derivative Location of Gain (Loss) Reclassified from Accumulated OCI into Net Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Income Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Nine Months For the Nine Months For the Nine Months 2023 2022 2023 2022 2023 2022 Derivatives in cash flow hedging relationships: Interest rate swaps $ 73,853 $ 316,479 Interest expense $ 52,023 $ (63,837) $ 243,408 $ 225,683 Location of Amount of Loss Recognized in Net Income on Derivative For the Nine Months 2023 2022 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 41 $ 63 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Summary of Dividends Declared | The following table summarizes our dividends declared from January 1, 2022 through September 30, 2023: Record Date Amount Pay Date Total Amount Declared Q3-2023 August 8, 2023 $ 0.26 August 25, 2023 $ 160,540 Q2-2023 May 10, 2023 0.26 May 26, 2023 159,493 Q1-2023 February 14, 2023 0.26 February 28, 2023 158,453 Q4-2022 November 8, 2022 0.22 November 23, 2022 135,654 Q3-2022 August 9, 2022 0.22 August 26, 2022 135,042 Q2-2022 May 10, 2022 0.22 May 27, 2022 134,744 Q1-2022 February 14, 2022 0.22 February 28, 2022 134,240 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, RSU and PRSU Activity | The following table summarizes activity related to non-vested time-vesting RSUs and PRSUs, other than Outperformance Awards, during the nine months ended September 30, 2023: Time-Vesting Awards PRSUs Total Share-Based Awards (1) Number Weighted Number Weighted Number Weighted Balance, December 31, 2022 509,872 $ 34.54 1,211,571 $ 32.08 1,721,443 $ 32.81 Granted 350,949 31.67 721,001 30.51 1,071,950 30.89 Vested (2) (220,208) (33.06) (505,933) (31.54) (726,141) (32.00) Forfeited / canceled (23,376) (33.82) (57,933) (31.39) (81,309) (32.09) Balance, September 30, 2023 617,237 $ 33.46 1,368,706 $ 31.48 1,985,943 $ 32.09 (1) Total share-based awards excludes Outperformance Awards. (2) All vested share-based awards are included in basic EPS for the periods after each award’s vesting date. The estimated aggregate fair value of share-based awards that fully vested during the nine months ended September 30, 2023 was $23,265. During the nine months ended September 30, 2023, 5,306 RSUs were accelerated pursuant to the terms and conditions of the Omnibus Incentive Plan and related award agreements. |
Schedule of Grant-Date Fair Values | The following table summarizes the significant inputs utilized in these models for such awards granted or modified during the nine months ended September 30, 2023: For the Nine Months Ended September 30, 2023 Expected volatility (1) 20.5% — 30.0% Risk-free rate 4.31% — 4.62% Expected holding period (years) 1.00 — 2.84 (1) Expected volatility was estimated based on the historical volatility of INVH’s realized returns and of the applicable index. |
Schedule of Share-Based Compensation Expense | During the three and nine months ended September 30, 2023 and 2022, we recognized share-based compensation expense as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 General and administrative $ 7,099 $ 6,169 $ 16,261 $ 17,584 Property management expense 1,830 1,761 5,232 4,981 Total $ 8,929 $ 7,930 $ 21,493 $ 22,565 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Assets carried at historical cost on the condensed consolidated balance sheets: Investments in debt securities (1) Level 2 $ 86,617 $ 83,111 $ 86,980 $ 84,992 Liabilities carried at historical cost on the condensed consolidated balance sheets: Unsecured Notes — public offering (2) Level 1 $ 3,029,281 $ 2,546,147 $ 2,238,066 $ 1,798,658 Mortgage loans (3) Level 2 1,638,792 1,550,094 1,653,724 1,588,550 Unsecured Notes — private placement (4) Level 2 300,000 225,582 300,000 228,726 Secured Term Loan (5) Level 3 403,129 348,818 403,363 356,557 Term Loan Facilities (6) Level 3 3,225,000 3,228,291 3,225,000 3,233,677 (1) The carrying values of investments in debt securities are shown net of discount. (2) The carrying value of the Unsecured Notes — public offering includes $20,719 and $11,934 of unamortized discount and excludes $23,979 and $18,534 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (3) The carrying values of the mortgage loans include $1,320 and $1,584 of unamortized discount and exclude $6,819 and $7,929 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (4) The carrying value of the Unsecured Notes — private placement excludes $1,220 and $1,347 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (5) The carrying value of the Secured Term Loan excludes $1,669 and $1,833 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. (6) The carrying values of the Term Loan Facilities exclude $15,275 and $21,433 of deferred financing costs as of September 30, 2023 and December 31, 2022, respectively. |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following table displays the significant unobservable inputs used to develop our Level 3 fair value measurements as of September 30, 2023: Quantitative Information about Level 3 Fair Value Measurement (1) Fair Value Valuation Technique Unobservable Input Rate Secured Term Loan $ 348,818 Discounted Cash Flow Effective Rate 5.76% Term Loan Facilities 3,228,291 Discounted Cash Flow Effective Rate 5.00% — 6.77% (1) Our Level 3 fair value instruments require interest only payments. |
Schedule of Impaired Assets, Measured at Fair Value on a Nonrecurring Basis | The single-family residential properties for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below: For the Three Months For the Nine Months 2023 2022 2023 2022 Investments in single-family residential properties, net held for sale (Level 3): Pre-impairment amount $ 567 $ 125 $ 1,606 $ 861 Total impairments (83) (101) (342) (238) Fair value $ 484 $ 24 $ 1,264 $ 623 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share Calculation | Basic and diluted EPS are calculated as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 (in thousands, except share and per share data) Numerator: Net income available to common stockholders — basic and diluted $ 131,637 $ 79,032 $ 389,406 $ 282,242 Denominator: Weighted average common shares outstanding — basic 612,000,811 610,845,820 611,849,302 609,212,132 Effect of dilutive securities: Incremental shares attributed to non-vested share-based awards 1,579,231 1,801,768 1,305,739 1,529,591 Weighted average common shares outstanding — diluted 613,580,042 612,647,588 613,155,041 610,741,723 Net income per common share — basic $ 0.22 $ 0.13 $ 0.64 $ 0.46 Net income per common share — diluted $ 0.21 $ 0.13 $ 0.64 $ 0.46 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating and Finance Leases Liabilities | The following table sets forth our fixed lease payment commitments as a lessee as of September 30, 2023, for the periods below: Year Operating Finance Remainder of 2023 $ 1,154 $ 782 2024 4,544 1,372 2025 3,157 621 2026 1,940 577 2027 1,264 314 Thereafter 429 — Total lease payments 12,488 3,666 Less: imputed interest (660) (227) Total lease liability $ 11,828 $ 3,439 |
Schedule of Lease Costs | The components of lease expense for the three and nine months ended September 30, 2023 and 2022 are as follows: For the Three Months For the Nine Months 2023 2022 2023 2022 Operating lease cost: Fixed lease cost $ 793 $ 800 $ 2,514 $ 2,466 Variable lease cost 444 384 1,174 1,133 Total operating lease cost $ 1,237 $ 1,184 $ 3,688 $ 3,599 Finance lease cost: Amortization of ROU assets $ 717 $ 675 $ 2,011 $ 2,055 Interest on lease liabilities 106 51 247 178 Total finance lease cost $ 823 $ 726 $ 2,258 $ 2,233 |
Organization and Formation (Det
Organization and Formation (Details) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 | Feb. 06, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Common stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 | 9,000,000,000 |
Preferred stock, shares authorized (in shares) | 900,000,000 | 900,000,000 | 900,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Percentage ownership of the combined entity after the transaction | 99.70% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Accounting Policies [Abstract] | ||
Conversion ratio from units to shares | 1 | |
Reclassification [Line Items] | ||
Investments in equity securities | $ (32,610) | $ (14,340) |
Other investing activities | $ 18,182 | 8,291 |
Revision of Prior Period, Reclassification, Adjustment | ||
Reclassification [Line Items] | ||
Investments in equity securities | 14,340 | |
Other investing activities | $ (14,340) |
Investments in Single-Family _3
Investments in Single-Family Residential Properties - Net Carrying Amount of Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Real Estate [Abstract] | ||
Land | $ 4,907,452 | $ 4,800,110 |
Single-family residential property | 15,915,306 | 15,228,631 |
Capital improvements | 563,024 | 548,700 |
Equipment | 126,939 | 123,494 |
Total gross investments in the properties | 21,512,721 | 20,700,935 |
Less: accumulated depreciation | (4,112,685) | (3,670,561) |
Investments in single-family residential properties, net | $ 17,400,036 | $ 17,030,374 |
Investments in Single-Family _4
Investments in Single-Family Residential Properties - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Capitalized acquisition costs, net | $ 134,275 | $ 134,275 | $ 129,341 | ||
Capitalized interest costs | 77,402 | 77,402 | 76,408 | ||
Capitalized property taxes, net | 30,691 | 30,691 | 30,435 | ||
Capitalized insurance, net | 4,982 | 4,982 | 4,982 | ||
Capitalized HOA fees, net | 3,663 | 3,663 | $ 3,627 | ||
Depreciation and amortization | 170,696 | $ 160,428 | 501,128 | $ 474,796 | |
Provisions for impairment | 83 | 101 | 342 | 238 | |
Components of Properties | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | 167,921 | 158,199 | 493,027 | 468,272 | |
Furniture and Fixtures | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | $ 2,775 | $ 2,229 | $ 8,101 | $ 6,524 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Reconciliation to Statements of Cash Flows (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 762,638 | $ 262,870 | ||
Restricted cash | 217,253 | 191,057 | ||
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 979,891 | $ 453,927 | $ 515,896 | $ 818,858 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash - Schedule of Restricted Cash Accounts (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 217,253 | $ 191,057 |
Resident security deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 180,450 | 175,829 |
Collections | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 12,456 | 7,415 |
Property taxes | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 18,747 | 2,717 |
Letters of credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 2,612 | 2,109 |
Capital expenditures | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 2,297 | 2,297 |
Special and other reserves | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 691 | $ 690 |
Investments In Unconsolidated_3
Investments In Unconsolidated Joint Ventures (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 19 Months Ended | |||
Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) property | Dec. 31, 2022 USD ($) property | |
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying Value | $ 258,030 | $ 258,030 | $ 258,030 | $ 280,571 | ||
Losses from investments in unconsolidated joint ventures | 4,902 | $ 849 | 11,087 | $ 5,870 | ||
Property management fee revenue | 3,404 | 3,284 | 10,227 | 8,154 | ||
Related Party | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Property management fee revenue | $ 3,404 | $ 3,284 | $ 10,227 | $ 8,154 | ||
Pathway Property Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 100% | 100% | 100% | |||
Number of Properties Owned | property | 473 | 473 | 473 | 340 | ||
Carrying Value | $ 125,613 | $ 125,613 | $ 125,613 | $ 131,542 | ||
Joint venture funded | 136,700 | |||||
Remaining equity commitment | $ 88,300 | $ 88,300 | $ 88,300 | |||
2020 Rockpoint JV | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 20% | 20% | 20% | |||
Number of Properties Owned | property | 2,609 | 2,609 | 2,609 | 2,610 | ||
Carrying Value | $ 64,745 | $ 64,745 | $ 64,745 | $ 70,103 | ||
FNMA | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 10% | 10% | 10% | |||
Number of Properties Owned | property | 442 | 442 | 442 | 488 | ||
Carrying Value | $ 35,799 | $ 35,799 | $ 35,799 | $ 46,151 | ||
Pathway Operating Company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 15% | 15% | 15% | |||
Carrying Value | $ 20,909 | $ 20,909 | $ 20,909 | $ 22,011 | ||
2022 Rockpoint JV | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 16.70% | 16.70% | 16.70% | |||
Number of Properties Owned | property | 132 | 132 | 132 | 132 | ||
Carrying Value | $ 10,964 | $ 10,964 | $ 10,964 | $ 10,764 | ||
Joint venture funded | 10,442 | |||||
Remaining equity commitment | $ 39,558 | $ 39,558 | $ 39,558 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) $ in Thousands | Sep. 30, 2023 USD ($) property | Dec. 31, 2022 USD ($) property |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Derivative instruments (Note 8) | $ 134,017 | $ 119,193 |
Amounts deposited and held by others (Note 14) | 95,770 | 97,709 |
Investments in debt securities, net | 86,617 | 86,980 |
Rent and other receivables, net | 58,874 | 54,091 |
Investments in equity securities | 55,136 | 22,413 |
Prepaid expenses | 43,333 | 41,972 |
Held for sale assets | 35,778 | 29,842 |
Corporate fixed assets, net | 24,460 | 24,484 |
ROU lease assets — operating and finance, net | 13,723 | 16,534 |
Deferred financing costs, net | 3,702 | 5,850 |
Other | 18,624 | 14,561 |
Total | $ 570,034 | $ 513,629 |
Number properties held-for-sale | property | 159 | 131 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||||
Investments in debt securities, net | $ 86,617 | $ 86,617 | $ 86,980 | ||
Unamortized discount | $ 22,039 | $ 22,039 | |||
Initial contractual term | 12 months | 12 months | |||
Variable lease income | $ 41,301 | $ 35,834 | $ 113,875 | $ 102,960 | |
Financing costs | 11,846 | 11,846 | |||
Debt issuance costs, unamortized balance | 3,702 | 3,702 | 5,850 | ||
Mortgage Loans | |||||
Schedule of Investments [Line Items] | |||||
Unamortized discount | 1,320 | 1,320 | |||
IH1 2017-1 | Mortgage Loans | |||||
Schedule of Investments [Line Items] | |||||
Unamortized discount | 1,320 | 1,320 | $ 1,584 | ||
Residential Mortgage Backed Securities | |||||
Schedule of Investments [Line Items] | |||||
Investments in debt securities, net | $ 86,617 | $ 86,617 | |||
Residential Mortgage Backed Securities | Minimum | |||||
Schedule of Investments [Line Items] | |||||
Retained certificates, expected maturity term | 3 months | ||||
Residential Mortgage Backed Securities | Maximum | |||||
Schedule of Investments [Line Items] | |||||
Retained certificates, expected maturity term | 4 years |
Other Assets - Schedule of Rent
Other Assets - Schedule of Rent Revenues (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 526,668 |
2024 | 1,002,245 |
2025 | 135,970 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | $ 1,664,883 |
Other Assets - Schedule of Inve
Other Assets - Schedule of Investments in Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Investments without a readily determinable fair value | $ 54,068 | $ 21,500 |
Investments with a readily determinable fair value | 1,068 | 913 |
Total | $ 55,136 | $ 22,413 |
Other Assets - Gains (Losses) o
Other Assets - Gains (Losses) on Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Net losses recognized on investments sold during the reporting period — with a readily determinable value | $ 0 | $ 0 | $ 0 | $ (1,452) |
Net unrealized gains (losses) on investments still held at the reporting date — with a readily determinable fair value | (499) | (796) | 113 | (2,548) |
Total | $ (499) | $ (796) | $ 113 | $ (4,000) |
Other Assets - Schedule of Leas
Other Assets - Schedule of Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Operating lease, other assets | $ 9,920 | $ 12,862 |
Operating lease, other liabilities | $ 11,828 | $ 14,925 |
Operating lease, weighted average remaining lease term | 3 years 2 months 12 days | 3 years |
Lessee, operating lease, weighted average discount rate | 3.30% | 3.30% |
Finance lease, other assets | $ 3,803 | $ 3,672 |
Finance lease, other liabilities | $ 3,439 | $ 3,483 |
Finance lease, weighted average remaining lease term | 2 years 4 months 24 days | 1 year 4 months 24 days |
Lessee, finance lease, weighted average discount rate | 4.60% | 4% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Debt - Schedule of Mortgage Loa
Debt - Schedule of Mortgage Loans (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 USD ($) extension | Jul. 03, 2023 | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Less: deferred financing costs, net | $ (48,962) | ||
Total | 8,547,240 | ||
Unamortized discount | $ 22,039 | ||
IH 2018-4 | Secured Overnight Financing Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, variable rate | 5.32% | 0.11% | |
Mortgage Loans | |||
Debt Instrument [Line Items] | |||
Total Securitizations | $ 1,638,792 | $ 1,653,724 | |
Less: deferred financing costs, net | (6,819) | (7,929) | |
Total | $ 1,631,973 | 1,645,795 | |
Extension term | 1 year | ||
Unamortized discount | $ 1,320 | ||
Mortgage Loans | IH1 2017-1 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.23% | ||
Total Securitizations | $ 991,674 | 992,695 | |
Unamortized discount | $ 1,320 | 1,584 | |
Debt instrument term | 10 years | ||
Mortgage Loans | IH 2018-4 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.66% | ||
Total Securitizations | $ 647,118 | $ 661,029 | |
Extension term | 1 year | ||
Debt instrument term | 2 years | ||
Mortgage Loans | IH 2018-4 | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.15% | ||
Mortgage Loans | IH 2018-4 | Minimum | Secured Overnight Financing Rate | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.15% | ||
Mortgage Loans | IH 2018-4 | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% | ||
Number of extensions | extension | 5 | ||
Mortgage Loans | IH 2018-4 | Maximum | Secured Overnight Financing Rate | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% |
Debt - Mortgage Loans Narrative
Debt - Mortgage Loans Narrative (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 USD ($) loan property extension | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) property | |
Debt Instrument [Line Items] | |||
Gross book value | $ 21,512,721 | $ 20,700,935 | |
Investments in single-family residential properties, net | 17,400,036 | 17,030,374 | |
Investments in debt securities, net | 86,617 | 86,980 | |
Mandatory prepayments | 15,196 | $ 849,712 | |
Level 2 | |||
Debt Instrument [Line Items] | |||
Investments in debt securities, net | $ 86,617 | $ 86,980 | |
Mortgage Loans | |||
Debt Instrument [Line Items] | |||
Extension term | 1 year | ||
Debt instrument, loan principal as a percentage of mortgage pool | 5% | ||
Mandatory prepayments | $ 15,196 | $ 849,712 | |
Mortgage Loans | Residential Real Estate | |||
Debt Instrument [Line Items] | |||
Number of real estate properties | property | 10,617 | 10,712 | |
Gross book value | $ 2,350,078 | $ 2,355,083 | |
Investments in single-family residential properties, net | $ 1,799,650 | $ 1,859,614 | |
Mortgage Loans | IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 | |||
Debt Instrument [Line Items] | |||
Number of components | loan | 6 | ||
Extension term | 1 year | ||
Mortgage Loans | IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 | Minimum | |||
Debt Instrument [Line Items] | |||
Initial term | 2 years | ||
Mortgage Loans | IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 | Maximum | |||
Debt Instrument [Line Items] | |||
Number of extensions | extension | 5 | ||
Mortgage Loans | IH1 2017-1 | |||
Debt Instrument [Line Items] | |||
Number of components | loan | 2 | ||
Debt instrument term | 10 years | ||
Fixed interest rate | 4.23% | ||
Mortgage Loans | IH1 2017-1 | Class B Certificates | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.23% | ||
Mortgage Loans | IH 2018-4 | |||
Debt Instrument [Line Items] | |||
Extension term | 1 year | ||
Debt instrument term | 2 years | ||
Mortgage Loans | IH 2018-4 | Each Class Certificates | |||
Debt Instrument [Line Items] | |||
Debt instrument, loan principal as a percentage of mortgage pool | 5% | ||
Mortgage Loans | IH 2018-4 | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.15% | ||
Mortgage Loans | IH 2018-4 | Minimum | Secured Overnight Financing Rate | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.15% | ||
Mortgage Loans | IH 2018-4 | Maximum | |||
Debt Instrument [Line Items] | |||
Number of extensions | extension | 5 | ||
Basis spread | 1.45% | ||
Mortgage Loans | IH 2018-4 | Maximum | Secured Overnight Financing Rate | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% |
Debt - Secured Term Loan Narrat
Debt - Secured Term Loan Narrative (Details) | 9 Months Ended | |||
Jun. 07, 2019 | Sep. 30, 2023 USD ($) property | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) property | |
Debt Instrument [Line Items] | ||||
Gross book value | $ 21,512,721,000 | $ 20,700,935,000 | ||
Investments in single-family residential properties, net | $ 17,400,036,000 | $ 17,030,374,000 | ||
Prepayments of secured term loan | $ 0 | |||
Secured Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument term | 12 years | |||
Fixed interest rate | 3.59% | 3.59% | ||
Secured Term Loan | Maximum | ||||
Debt Instrument [Line Items] | ||||
Annual limitation on collateral substitution | 20% | |||
Limitation on collateral substitution | 100% | |||
Number of special releases allowed after first anniversary | 4 | |||
Special release of collateral | 15% | |||
Secured Term Loan | Residential Real Estate | ||||
Debt Instrument [Line Items] | ||||
Number of real estate properties | property | 3,332 | 3,334 | ||
Gross book value | $ 825,513,000 | $ 813,543,000 | ||
Investments in single-family residential properties, net | $ 679,394,000 | $ 688,625,000 | ||
Secured Term Loan | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.47% | |||
Secured Term Loan | Fixed Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument term | 11 years |
Debt - Schedule of Secured Term
Debt - Schedule of Secured Term Loan (Details) - USD ($) $ in Thousands | Jun. 07, 2019 | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Secured Term Loan | $ 8,618,241 | ||
Deferred financing costs, net | (48,962) | ||
Total | $ 8,547,240 | ||
Secured Term Loan | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 3.59% | 3.59% | |
Secured Term Loan | $ 403,129 | $ 403,363 | |
Deferred financing costs, net | (1,669) | (1,833) | |
Total | $ 401,460 | $ 401,530 | |
Debt instrument term | 12 years | ||
Secured Term Loan | Fixed Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 11 years |
Debt - Schedule of Unsecured No
Debt - Schedule of Unsecured Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Deferred financing costs, net | $ (48,962) | |
Total | 8,547,240 | |
Unamortized discount | 22,039 | |
Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Total Unsecured Notes, net | 3,329,281 | $ 2,538,066 |
Deferred financing costs, net | (25,199) | (19,881) |
Total | 3,304,082 | 2,518,185 |
Unamortized discount | $ 20,719 | $ 11,934 |
Unsecured Notes | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 2% | |
Unsecured Notes | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% |
Debt - Unsecured Notes Narrativ
Debt - Unsecured Notes Narrative (Details) - Unsecured Notes - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Aug. 02, 2023 | Apr. 05, 2022 | |
Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.50% | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 2% | ||
Unsecured Notes Due August 2030 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 450,000,000 | ||
Interest rate | 5.45% | ||
Unsecured Notes Due August 2033 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 350,000,000 | ||
Interest rate | 5.50% | ||
Unsecured Notes - April 2032 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 600,000 | ||
Interest rate | 4.15% | ||
Debt redemption percentage | 100% | ||
Prepayment requirements of principal outstanding | 5% | ||
Unsecured Notes - April 2032 | Maximum | |||
Debt Instrument [Line Items] | |||
Period where make-whole premium not included in redemption | 3 months | ||
Unsecured Notes - April 2032 | Minimum | |||
Debt Instrument [Line Items] | |||
Period where make-whole premium not included in redemption | 1 month |
Debt - Term Loan Facility and R
Debt - Term Loan Facility and Revolving Facility Narrative (Details) - Line of Credit | 9 Months Ended | |||||
Apr. 18, 2023 | Apr. 17, 2023 | Dec. 08, 2020 USD ($) extension | Sep. 30, 2023 extension | Apr. 28, 2023 | Jun. 22, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, current borrowing capacity | $ 3,500,000,000 | |||||
Number of extensions | extension | 2 | 2 | ||||
Extension term | 6 months | 6 months | ||||
Aggregate borrowing capacity | $ 4,000,000,000 | |||||
Federal Funds Effective Swap Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 0.50% | 0.50% | ||||
SOFR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1% | 1% | ||||
Base Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1% | |||||
Revolving Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, current borrowing capacity | 1,000,000,000 | |||||
Revolving Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, facility fee percentage | 0.10% | |||||
Revolving Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, facility fee percentage | 0.30% | |||||
Revolving Facility | SOFR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 0.89% | |||||
Term Loan Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, current borrowing capacity | $ 2,500,000,000 | |||||
2022 Term Loan Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate borrowing capacity | $ 725,000,000 | |||||
Line of credit facility, accordion feature, increased borrowing capacity | 950,000,000 | |||||
Debt instrument, credit spread adjustment | 0.10% | |||||
Basis spread | 1.24% | |||||
Prepayment fee for the first period | 2% | |||||
Prepayment fee for the second period | 1% | |||||
2022 Term Loan Facility | Federal Funds Effective Swap Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 0.50% | |||||
2022 Term Loan Facility | SOFR Adjustment | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1% | |||||
Initial Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate borrowing capacity | 150,000,000 | |||||
Delayed Draw Term Loans | ||||||
Line of Credit Facility [Line Items] | ||||||
Aggregate borrowing capacity | $ 575,000,000 | |||||
Unused facility fee | 0.20% | |||||
2020 Term Loan Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, credit spread adjustment | 0.10% | 0.10% | ||||
2020 Term Loan Facility | SOFR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread | 1% |
Debt - Schedule of Term Loan Fa
Debt - Schedule of Term Loan Facility and Revolving Facility (Details) $ in Thousands | 9 Months Ended | ||||
Apr. 18, 2023 | Apr. 17, 2023 | Dec. 08, 2020 extension | Sep. 30, 2023 USD ($) extension | Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |||||
Long-term debt, outstanding principal | $ 8,618,241 | ||||
Less: deferred financing costs, net | (48,962) | ||||
Total | $ 8,547,240 | ||||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Number of extensions | extension | 2 | 2 | |||
Extension term | 6 months | 6 months | |||
Line of Credit | SOFR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 1% | 1% | |||
Line of Credit | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 1.47% | ||||
Line of Credit | Term Loan Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt, outstanding principal | $ 3,225,000 | $ 3,225,000 | |||
Less: deferred financing costs, net | (15,275) | (21,433) | |||
Total | $ 3,209,725 | 3,203,567 | |||
Line of Credit | 2020 Term Loan Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 6.42% | ||||
Long-term debt, outstanding principal | $ 2,500,000 | 2,500,000 | |||
Debt instrument, credit spread adjustment | 0.10% | 0.10% | |||
Line of Credit | 2020 Term Loan Facility | SOFR | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, variable rate | 5.32% | ||||
Basis spread | 1% | ||||
Line of Credit | 2022 Term Loan Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 6.66% | ||||
Long-term debt, outstanding principal | $ 725,000 | 725,000 | |||
Debt instrument, credit spread adjustment | 0.10% | ||||
Basis spread | 1.24% | ||||
Line of Credit | 2022 Term Loan Facility | SOFR | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, variable rate | 5.32% | ||||
Line of Credit | 2022 Term Loan Facility | SOFR Adjustment | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 1% | ||||
Line of Credit | Revolving Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate | 6.31% | ||||
Long-term debt, outstanding principal | $ 0 | $ 0 | |||
Line of Credit | Revolving Facility | SOFR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread | 0.89% |
Debt - Margins on Facilities (D
Debt - Margins on Facilities (Details) - Line of Credit | 9 Months Ended | |
Apr. 18, 2023 | Sep. 30, 2023 | |
Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1% | |
2022 Term Loan Facility | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.24% | |
2022 Term Loan Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1% | |
Credit Grade Rating Pricing Grid | Minimum | 2020 Term Loan Facility | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0% | |
Credit Grade Rating Pricing Grid | Minimum | 2020 Term Loan Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.80% | |
Credit Grade Rating Pricing Grid | Minimum | 2022 Term Loan Facility | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.15% | |
Credit Grade Rating Pricing Grid | Minimum | 2022 Term Loan Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.15% | |
Credit Grade Rating Pricing Grid | Minimum | Revolving Facility | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0% | |
Credit Grade Rating Pricing Grid | Minimum | Revolving Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.75% | |
Credit Grade Rating Pricing Grid | Maximum | 2020 Term Loan Facility | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.65% | |
Credit Grade Rating Pricing Grid | Maximum | 2020 Term Loan Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.65% | |
Credit Grade Rating Pricing Grid | Maximum | 2022 Term Loan Facility | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.20% | |
Credit Grade Rating Pricing Grid | Maximum | 2022 Term Loan Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.20% | |
Credit Grade Rating Pricing Grid | Maximum | Revolving Facility | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.45% | |
Credit Grade Rating Pricing Grid | Maximum | Revolving Facility | SOFR Adjustment | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.45% |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Jan. 18, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Jan. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Settlement of convertible notes | $ 141,219 | |||
2022 Convertible Notes | Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Convertible senior notes amount | $ 345,000 | |||
Interest rate | 3.50% | |||
Effective rate | 5.12% | |||
Settlement of convertible notes | $ 141,490 | |||
Number of converted shares issued (in shares) | 6,216,261 | |||
Equity component settled with cash | $ 271 |
Debt - Debt Maturities Schedule
Debt - Debt Maturities Schedule (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) extension | Dec. 31, 2022 USD ($) | |
Year | ||
2023 | $ 0 | |
2024 | 647,118 | |
2025 | 2,500,000 | |
2026 | 0 | |
2027 | 992,994 | |
Thereafter | 4,478,129 | |
Total | 8,618,241 | |
Less: deferred financing costs, net | (48,962) | |
Less: unamortized debt discount | (22,039) | |
Total | 8,547,240 | |
Mortgage Loans | ||
Year | ||
2023 | 0 | |
2024 | 647,118 | |
2025 | 0 | |
2026 | 0 | |
2027 | 992,994 | |
Thereafter | 0 | |
Total | 1,640,112 | |
Less: deferred financing costs, net | (6,819) | $ (7,929) |
Less: unamortized debt discount | (1,320) | |
Total | $ 1,631,973 | 1,645,795 |
Extension term | 1 year | |
Secured Term Loan | ||
Year | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 403,129 | |
Total | 403,129 | 403,363 |
Less: deferred financing costs, net | (1,669) | (1,833) |
Less: unamortized debt discount | 0 | |
Total | 401,460 | 401,530 |
Unsecured Notes | ||
Year | ||
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 3,350,000 | |
Total | 3,350,000 | |
Less: deferred financing costs, net | (25,199) | (19,881) |
Less: unamortized debt discount | (20,719) | (11,934) |
Total | 3,304,082 | 2,518,185 |
Term Loan Facilities | ||
Year | ||
2023 | 0 | |
2024 | 0 | |
2025 | 2,500,000 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 725,000 | |
Total | 3,225,000 | |
Less: deferred financing costs, net | (15,275) | $ (21,433) |
Less: unamortized debt discount | 0 | |
Total | $ 3,209,725 | |
Number of extensions | extension | 2 | |
Extension term | 6 months | |
Revolving Facility | ||
Year | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total | 0 | |
Less: deferred financing costs, net | 0 | |
Less: unamortized debt discount | 0 | |
Total | $ 0 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap Instruments (Details) - Derivatives designated as hedging instruments - SOFR $ in Thousands | Sep. 30, 2023 USD ($) |
Interest Rate Swap 1 | |
Derivative [Line Items] | |
Strike Rate | 2.80% |
Notional Amount | $ 400,000 |
Interest Rate Swap 2 | |
Derivative [Line Items] | |
Strike Rate | 2.83% |
Notional Amount | $ 400,000 |
Interest Rate Swap 3 | |
Derivative [Line Items] | |
Strike Rate | 2.78% |
Notional Amount | $ 400,000 |
Interest Rate Swap 4 | |
Derivative [Line Items] | |
Strike Rate | 2.79% |
Notional Amount | $ 400,000 |
Interest Rate Swap 5 | |
Derivative [Line Items] | |
Strike Rate | 2.94% |
Notional Amount | $ 325,000 |
Interest Rate Swap 6 | |
Derivative [Line Items] | |
Strike Rate | 2.95% |
Notional Amount | $ 595,000 |
Interest Rate Swap 7 | |
Derivative [Line Items] | |
Strike Rate | 2.83% |
Notional Amount | $ 1,100,000 |
Interest Rate Swap 8 | |
Derivative [Line Items] | |
Strike Rate | 3.08% |
Notional Amount | $ 200,000 |
Interest Rate Swap 9 | |
Derivative [Line Items] | |
Strike Rate | 2.99% |
Notional Amount | $ 300,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Derivative [Line Items] | ||
Cost to terminate swap | $ 13,292,000 | |
Interest rate cash flow hedge gain to be reclassified during next 12 months | $ 82,542,000 | |
Net liability position | $ 0 | |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Interest rate cap | 8.46% | |
Interest rate caps | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Debt service coverage ratio | 1.2 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 134,017 | $ 119,193 |
Liability Derivatives | $ 0 | $ 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 134,017 | $ 119,193 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0 | 0 |
Interest rate swaps | Derivatives designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 134,017 | 119,157 |
Interest rate swaps | Derivatives designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0 | 0 |
Interest rate caps | Derivatives not designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 36 |
Interest rate caps | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0 | $ 0 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting of Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Offsetting assets: | ||
Gross amounts of recognized assets | $ 134,017 | $ 119,193 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net amounts of assets presented in the statement of financial position | 134,017 | 119,193 |
Gross amounts not offset in the statement of financial position, financial instruments | 0 | 0 |
Gross amounts not offset in the statement of financial position, cash collateral received | 0 | 0 |
Net Amount | 134,017 | 119,193 |
Offsetting liabilities: | ||
Gross amounts of recognized liabilities | 0 | 0 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net amounts of liabilities presented in the statement of financial position | 0 | 0 |
Gross amounts not offset in the statement of financial position, financial instruments | 0 | 0 |
Gross amounts not offset in the statement of financial position, cash collateral received | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain Recognized in OCI on Derivative | $ 27,845 | $ 102,940 | $ 73,853 | $ 316,479 |
Interest expense | 86,736 | 76,454 | 243,408 | 225,683 |
AOCI into Net Loss | Reclassified from AOCI | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest expense | 21,081 | (9,591) | 52,023 | (63,837) |
Interest rate swaps | Cash Flow Hedging | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain Recognized in OCI on Derivative | 27,845 | 102,940 | 73,853 | 316,479 |
Interest rate caps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Recognized in Net Income on Derivative | $ 1 | $ 28 | $ 41 | $ 63 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||||
Oct. 19, 2023 $ / shares | Aug. 08, 2023 $ / shares | May 10, 2023 $ / shares | Feb. 14, 2023 $ / shares | Nov. 08, 2022 $ / shares | Aug. 09, 2022 $ / shares | May 10, 2022 $ / shares | Feb. 14, 2022 $ / shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2022 shares | Dec. 20, 2021 USD ($) | |
Class of Stock [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | shares | 611,958,239 | 611,958,239 | 611,411,382 | |||||||||||
Conversion ratio from units to shares | 1 | |||||||||||||
Redeemable OP Units outstanding (in shares) | shares | 1,869,483 | 1,869,483 | ||||||||||||
Issuance of common stock (in shares) | shares | 2,069 | 1,050,000 | 546,857 | 10,364,471 | ||||||||||
Common stock dividends declared (in dollars per share) | $ / shares | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.78 | $ 0.66 | |||
Subsequent Event | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Common stock dividends declared (in dollars per share) | $ / shares | $ 0.0026 | |||||||||||||
Merger with Starwood Waypoint Homes | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Conversion ratio from units to shares | 1 | |||||||||||||
2021 ATM Equity Program | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Aggregate sales price | $ | $ 1,250,000 | |||||||||||||
Number of shares issued in transaction (in shares) | shares | 0 | 0 | 0 | 2,438,927 | ||||||||||
Sale of stock, consideration received | $ | $ 98,367 | |||||||||||||
Commissions and other costs | $ | $ 1,633 | |||||||||||||
Available for future offerings | $ | $ 1,150,000 | $ 1,150,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||||||||||
Aug. 25, 2023 | Aug. 08, 2023 | May 26, 2023 | May 10, 2023 | Feb. 28, 2023 | Feb. 14, 2023 | Nov. 23, 2022 | Nov. 08, 2022 | Aug. 26, 2022 | Aug. 09, 2022 | May 27, 2022 | May 10, 2022 | Feb. 28, 2022 | Feb. 14, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||||||||||||||||||
Amount per Share (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.78 | $ 0.66 | |||||||
Total Amount Declared | $ 160,540 | $ 159,493 | $ 158,453 | $ 135,654 | $ 135,042 | $ 134,744 | $ 134,240 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Feb. 01, 2023 USD ($) | Apr. 01, 2022 | May 01, 2019 | Apr. 30, 2022 shares | Sep. 30, 2023 USD ($) installment shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Pre-modification fair value | $ | $ 3,741 | ||||
Incremental cost | $ | $ 309 | ||||
Reversal of previously recognized share-based compensation expense | $ | $ 1,941 | ||||
Restricted Stock Units (RSUs) | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 56,562 | ||||
Number of annual installments | installment | 3 | ||||
Time-Vesting Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 350,949 | ||||
Time-Vesting Awards | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 50,895 | ||||
Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 16,000,000 | ||||
Omnibus Incentive Plan | PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 311,425 | ||||
Omnibus Incentive Plan | Performance-Based and OP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Vested, fair value | $ | $ 3,164 | ||||
Aggregate grant-date fair value before forfeiture | $ | $ 12,160 | ||||
Omnibus Incentive Plan | Performance-Based and OP Units | Certification Date in April 2022 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 50% | ||||
Omnibus Incentive Plan | Performance-Based and OP Units | Vested on March 31, 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 25% | ||||
Omnibus Incentive Plan | Performance-Based and OP Units | Vested on March 31, 2024 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 25% | ||||
Omnibus Incentive Plan | Performance-Based and OP Units | Certification Date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 50% | ||||
Omnibus Incentive Plan | Performance-Based and OP Units | March 31, 2026 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights | 50% | ||||
Omnibus Incentive Plan | OP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 498,224 | ||||
LTIP Agreement | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 776,492 | ||||
Number of annual installments | installment | 3 | ||||
Award vesting period | 3 years | ||||
LTIP Agreement | PRSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance units granted and vested in period (in shares) | 188,001 | ||||
2022 Outperformance Awards | Performance-Based and OP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Percentage of performance period | 75% | ||||
Percentage of hypothetical payout amounts | 50% | ||||
Aggregate fair value granted | $ | $ 17,500 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Total Share-Based Awards (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Total Share-Based Awards | |
Restricted Stock and Restricted Stock Units Outstanding | |
Balance, beginning of period (in shares) | 1,721,443 |
Granted (in shares) | 1,071,950 |
Vested (in shares) | (726,141) |
Forfeited/cancelled (in shares) | (81,309) |
Balance, ending of period (in shares) | 1,985,943 |
Vested, fair value | $ | $ 23,265 |
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | |
Balance, beginning of period (in dollars per share) | $ / shares | $ 32.81 |
Granted (in dollars per share) | $ / shares | 30.89 |
Vested (in dollars per share) | $ / shares | (32) |
Forfeited (in dollars per share) | $ / shares | (32.09) |
Balance, ending of period (in dollars per share) | $ / shares | $ 32.09 |
Time-Vesting Awards | |
Restricted Stock and Restricted Stock Units Outstanding | |
Balance, beginning of period (in shares) | 509,872 |
Granted (in shares) | 350,949 |
Vested (in shares) | (220,208) |
Forfeited/cancelled (in shares) | (23,376) |
Balance, ending of period (in shares) | 617,237 |
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | |
Balance, beginning of period (in dollars per share) | $ / shares | $ 34.54 |
Granted (in dollars per share) | $ / shares | 31.67 |
Vested (in dollars per share) | $ / shares | (33.06) |
Forfeited (in dollars per share) | $ / shares | (33.82) |
Balance, ending of period (in dollars per share) | $ / shares | $ 33.46 |
Shares with accelerated vesting (in shares) | 5,306 |
PRSUs | |
Restricted Stock and Restricted Stock Units Outstanding | |
Balance, beginning of period (in shares) | 1,211,571 |
Granted (in shares) | 721,001 |
Vested (in shares) | (505,933) |
Forfeited/cancelled (in shares) | (57,933) |
Balance, ending of period (in shares) | 1,368,706 |
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | |
Balance, beginning of period (in dollars per share) | $ / shares | $ 32.08 |
Granted (in dollars per share) | $ / shares | 30.51 |
Vested (in dollars per share) | $ / shares | (31.54) |
Forfeited (in dollars per share) | $ / shares | (31.39) |
Balance, ending of period (in dollars per share) | $ / shares | $ 31.48 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Inputs (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Assumptions | |
Expected volatility, minimum | 20.50% |
Expected volatility, maximum | 30% |
Risk-free rate, minimum | 4.31% |
Risk-free rate, maximum | 4.62% |
Minimum | |
Fair Value Assumptions | |
Expected holding period (years) | 1 year |
Maximum | |
Fair Value Assumptions | |
Expected holding period (years) | 2 years 10 months 2 days |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Total Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 8,929 | $ 7,930 | $ 21,493 | $ 22,565 |
Employee service share-based compensation not yet recognized | 42,284 | $ 42,284 | ||
Weighted average remaining contractual terms | 1 year 10 months 2 days | |||
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 7,099 | 6,169 | $ 16,261 | 17,584 |
Property management expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 1,830 | $ 1,761 | $ 5,232 | $ 4,981 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets carried at historical cost on the condensed consolidated balance sheets: | ||
Investments in debt securities, net | $ 86,617 | $ 86,980 |
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Unamortized discount | 22,039 | |
Deferred financing costs, net | 48,962 | |
Unsecured Notes | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Unamortized discount | 20,719 | 11,934 |
Deferred financing costs, net | 25,199 | 19,881 |
Unsecured Notes | Public Notes | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Deferred financing costs, net | 23,979 | 18,534 |
Unsecured Notes | Private Placement | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Deferred financing costs, net | 1,220 | 1,347 |
Mortgage Loans | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Unamortized discount | 1,320 | |
Deferred financing costs, net | 6,819 | 7,929 |
Mortgage Loans | IH1 2017-1 | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Unamortized discount | 1,320 | 1,584 |
Secured Term Loan | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Unamortized discount | 0 | |
Deferred financing costs, net | 1,669 | 1,833 |
Term Loan Facilities | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Unamortized discount | 0 | |
Deferred financing costs, net | 15,275 | 21,433 |
Level 2 | ||
Assets carried at historical cost on the condensed consolidated balance sheets: | ||
Investments in debt securities, net | 86,617 | 86,980 |
Level 2 | Fair Value | ||
Assets carried at historical cost on the condensed consolidated balance sheets: | ||
Investments in debt securities | 83,111 | 84,992 |
Level 2 | Fair Value | Unsecured Notes | Private Placement | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 225,582 | 228,726 |
Level 2 | Fair Value | Mortgage Loans | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 1,550,094 | 1,588,550 |
Level 2 | Carrying Value | Unsecured Notes | Private Placement | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 300,000 | 300,000 |
Level 2 | Carrying Value | Mortgage Loans | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 1,638,792 | 1,653,724 |
Level 1 | Fair Value | Unsecured Notes | Public Notes | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 2,546,147 | 1,798,658 |
Level 1 | Carrying Value | Unsecured Notes | Public Notes | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 3,029,281 | 2,238,066 |
Level 3 | Fair Value | Secured Term Loan | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 348,818 | 356,557 |
Level 3 | Fair Value | Term Loan Facilities | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 3,228,291 | 3,233,677 |
Level 3 | Carrying Value | Secured Term Loan | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | 403,129 | 403,363 |
Level 3 | Carrying Value | Term Loan Facilities | ||
Liabilities carried at historical cost on the condensed consolidated balance sheets: | ||
Liabilities carried at historical cost | $ 3,225,000 | $ 3,225,000 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurement (Details) - Level 3 - Valuation Technique, Discounted Cash Flow | 9 Months Ended |
Sep. 30, 2023 | |
Secured Term Loan | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Rate | 5.76% |
Term Loan Facilities | Minimum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Rate | 5% |
Term Loan Facilities | Maximum | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Rate | 6.77% |
Fair Value Measurements - Impai
Fair Value Measurements - Impaired Assets, Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Total impairments | $ (83) | $ (101) | $ (342) | $ (238) |
Fair Value, Measurements, Nonrecurring | Level 3 | Rental Properties Held for Sale | ||||
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Pre-impairment amount | 567 | 125 | 1,606 | 861 |
Total impairments | (83) | (101) | (342) | (238) |
Fair value | $ 484 | $ 24 | $ 1,264 | $ 623 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income available to common stockholders — basic | $ 131,637 | $ 79,032 | $ 389,406 | $ 282,242 |
Net income available to common stockholders — diluted | $ 131,637 | $ 79,032 | $ 389,406 | $ 282,242 |
Denominator: | ||||
Weighted average common shares outstanding — basic (in shares) | 612,000,811 | 610,845,820 | 611,849,302 | 609,212,132 |
Incremental shares attributed to non-vested share-based awards (in shares) | 1,579,231 | 1,801,768 | 1,305,739 | 1,529,591 |
Weighted average common shares outstanding — diluted (in shares) | 613,580,042 | 612,647,588 | 613,155,041 | 610,741,723 |
Net income per common share — basic (in dollars per share) | $ 0.22 | $ 0.13 | $ 0.64 | $ 0.46 |
Net income per common share — diluted (in dollars per share) | $ 0.21 | $ 0.13 | $ 0.64 | $ 0.46 |
Non-Vested Share-Based Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted EPS (in shares) | 12,501 | 0 | 4,167 | 21,254 |
Convertible Debt Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted EPS (in shares) | 387,834 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 60 | $ 73 | $ 76 | $ 235 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Fixed Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Remainder of 2023 | $ 1,154 | |
2024 | 4,544 | |
2025 | 3,157 | |
2026 | 1,940 | |
2027 | 1,264 | |
Thereafter | 429 | |
Total lease payments | 12,488 | |
Less: imputed interest | (660) | |
Total lease liability | 11,828 | $ 14,925 |
Finance Leases | ||
Remainder of 2023 | 782 | |
2024 | 1,372 | |
2025 | 621 | |
2026 | 577 | |
2027 | 314 | |
Thereafter | 0 | |
Total lease payments | 3,666 | |
Less: imputed interest | (227) | |
Total lease liability | $ 3,439 | $ 3,483 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating lease cost: | ||||
Fixed lease cost | $ 793 | $ 800 | $ 2,514 | $ 2,466 |
Variable lease cost | 444 | 384 | 1,174 | 1,133 |
Total operating lease cost | 1,237 | 1,184 | 3,688 | 3,599 |
Finance lease cost: | ||||
Amortization of ROU assets | 717 | 675 | 2,011 | 2,055 |
Interest on lease liabilities | 106 | 51 | 247 | 178 |
Total finance lease cost | $ 823 | $ 726 | $ 2,258 | $ 2,233 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative (Details) - Inventories $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) home | |
Long-term Purchase Commitment [Line Items] | |
Number of homes committed to be purchased | home | 1,931 |
Purchase period | 7 years |
Remaining commitments | $ | $ 680,000 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||||||
Oct. 19, 2023 | Aug. 08, 2023 | May 10, 2023 | Feb. 14, 2023 | Nov. 08, 2022 | Aug. 09, 2022 | May 10, 2022 | Feb. 14, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Subsequent Event [Line Items] | ||||||||||||
Common stock dividends declared (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.26 | $ 0.22 | $ 0.78 | $ 0.66 | |
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock dividends declared (in dollars per share) | $ 0.0026 |