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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedSeptember 30, 2023
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number
001-38004
Invitation Homes Inc.
(Exact name of registrant as specified in its charter)
Maryland
90-0939055
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
1717 Main Street,
Suite 2000
75201
Dallas,
Texas
(Address of principal executive offices)(Zip Code)
(972)
421-3600
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par value
INVH
New York Stock Exchange
Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☑
No
☐
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).
Yes
☑
No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
☑
Accelerated Filer
☐
Non-Accelerated Filer
☐
Smaller Reporting Company
☐
Emerging Growth Company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes
☐
No
☑
As of October 24, 2023, there were 611,958,239 shares of common stock, par value $0.01 per share, outstanding.



INVITATION HOMES INC.



FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry and our business model, macroeconomic factors beyond our control, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) and insurance costs, poor resident selection and defaults and non-renewals by our residents, our dependence on third parties for key services, risks related to the evaluation of properties, performance of our information technology systems, risks related to our indebtedness, risks related to the potential negative impact of 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), geopolitical tensions, natural disasters, climate change, and public health crises on our financial condition, results of operations, cash flows, business, associates, and residents. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to, those described under Part I. Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “Annual Report on Form 10-K”) as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at http://www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this Quarterly Report on Form 10-Q, in the Annual Report on Form 10-K, and in our other periodic filings. The forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.
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DEFINED TERMS
Invitation Homes Inc. (“INVH”), a REIT, conducts its operations through Invitation Homes Operating Partnership LP (“INVH LP”). THR Property Management L.P., a wholly owned subsidiary of INVH LP, provides all management and other administrative services with respect to the properties we own. 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.
Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer to INVH and its consolidated subsidiaries.
In this Quarterly Report on Form 10-Q:
•“average monthly rent” represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period and reflects the impact of non-service rent concessions and contractual rent increases amortized over the life of the related lease. We believe average monthly rent reflects pricing trends that significantly impact rental revenues over time, making average monthly rent useful to management and external stakeholders as a means of evaluating changes in rental revenues across periods;
•“average occupancy” for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period. We believe average occupancy significantly impacts rental revenues in a given period, making comparisons of average occupancy across different periods helpful to management and external stakeholders in evaluating changes in rental revenues across periods;
•“Carolinas” includes Charlotte-Concord-Gastonia, NC-SC, Greensboro-High Point, NC, Raleigh-Cary, NC, Durham-Chapel Hill, NC, and Winston-Salem, NC;
•“days to re-resident” for an individual home represents the number of days between (i) the date the prior resident moves out of a home and (ii) the date the next resident is granted access to the same home, which is deemed to be the earlier of the next resident’s contractual lease start date and the next resident’s move-in date. Days to re-resident impacts our average occupancy and thus our rental revenues, making comparisons of days to re-resident helpful to management and external stakeholders in evaluating changes in rental revenues across periods;
•“in-fill” refers to markets, MSAs, submarkets, neighborhoods, or other geographic areas that are typified by significant population densities and low availability of land suitable for development into competitive properties, resulting in limited opportunities for new construction;
•“Metropolitan Statistical Area” or “MSA” is defined by the United States Office of Management and Budget as a region associated with at least one urbanized area that has a population of at least 50,000 and comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county or counties as measured through commuting;
•“net effective rental rate growth” for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease and, in each case, reflects the impact of non-service rent concessions and contractual rent increases amortized over the life of the related lease. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home. Net effective rental rate growth drives changes in our average monthly rent, making net effective rental rate growth useful to management and external stakeholders as a means of evaluating changes in rental revenues across periods;
•“Northern California” includes Sacramento-Roseville-Folsom, CA, San Francisco-Oakland-Berkeley, CA, Stockton, CA, Vallejo, CA, and Yuba City, CA;
•“PSF” means per square foot. When comparing homes or cohorts of homes, we believe PSF calculations help management and external stakeholders normalize metrics for differences in property size, enabling more meaningful comparisons based on characteristics other than property size;
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•“Same Store” or “Same Store portfolio” includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio, and homes in markets that we have announced an intent to exit where we no longer operate a significant number of homes for the primary purpose of income generation. Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio may be considered stabilized at the time of acquisition. Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established. We believe information about the portion of our portfolio that has been fully operational for the entirety of a given reporting period and its prior year comparison period provides management and external stakeholders with meaningful information about the performance of our comparable homes across periods and about trends in our organic business;
•“Southeast United States” includes our Atlanta and Carolinas markets;
•“South Florida” includes Miami-Fort Lauderdale-Pompano Beach, FL, and Port St. Lucie, FL;
•“Southern California” includes Los Angeles-Long Beach-Anaheim, CA, Oxnard-Thousand Oaks-Ventura, CA, Riverside-San Bernardino-Ontario, CA, and San Diego-Chula Vista-Carlsbad, CA;
•“total homes” or “total portfolio” refers to the total number of homes we own, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated. Unless otherwise indicated, total homes or total portfolio refers to wholly owned homes and excludes homes owned in joint ventures. Additionally, unless the context otherwise requires, all measures in this Quarterly Report on Form 10-Q are presented on a total portfolio basis;
•“turnover rate” represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population. To the extent the measurement period shown is less than 12 months, the turnover rate may be reflected on an annualized basis. We believe turnover rate impacts average occupancy and thus our rental revenues, making comparisons of turnover rate helpful to management and external stakeholders in evaluating changes in rental revenues across periods. In addition, turnover can impact our cost to maintain homes, making changes in turnover rate useful to management and external stakeholders in evaluating changes in our property operating and maintenance expenses across periods; and
•“Western United States” includes our Southern California, Northern California, Seattle, Phoenix, Las Vegas, and Denver markets.
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PART I
ITEM 1. FINANCIAL STATEMENTS
INVITATION HOMES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and per share data)


September 30,
2023		December 31, 2022
(unaudited)
Assets:
Investments in single-family residential properties:
Land$4,907,452 $4,800,110 
Building and improvements16,605,269 15,900,825 
21,512,721 20,700,935 
Less: accumulated depreciation(4,112,685)(3,670,561)
Investments in single-family residential properties, net17,400,036 17,030,374 
Cash and cash equivalents762,638 262,870 
Restricted cash217,253 191,057 
Goodwill258,207 258,207 
Investments in unconsolidated joint ventures258,030 280,571 
Other assets, net570,034 513,629 
Total assets$19,466,198 $18,536,708 
Liabilities:
Mortgage loans, net$1,631,973 $1,645,795 
Secured term loan, net401,460 401,530 
Unsecured notes, net3,304,082 2,518,185 
Term loan facilities, net3,209,725 3,203,567 
Revolving facility— — 
Accounts payable and accrued expenses368,065 198,423 
Resident security deposits180,111 175,552 
Other liabilities101,236 70,025 
Total liabilities9,196,652 8,213,077 
Commitments and contingencies (Note 14)
Equity:
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
— — 
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 capital11,149,732 11,138,463 
Accumulated deficit(1,039,782)(951,220)
Accumulated other comprehensive income119,728 97,985 
Total stockholders' equity10,235,798 10,291,342 
Non-controlling interests33,748 32,289 
Total equity10,269,546 10,323,631 
Total liabilities and equity$19,466,198 $18,536,708 

The accompanying notes are an integral part of these condensed consolidated financial statements.
6

INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except shares and per share data)
(unaudited)

For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2023202220232022
Revenues:
Rental revenues and other property income$614,291 $565,391 $1,797,730 $1,650,131 
Management fee revenues3,404 3,284 10,227 8,154 
Total revenues617,695 568,675 1,807,957 1,658,285 
Expenses:
Property operating and maintenance229,488 203,787 651,793 576,736 
Property management expense23,399 22,385 70,563 65,166 
General and administrative22,714 20,123 59,957 57,104 
Interest expense86,736 76,454 243,408 225,683 
Depreciation and amortization170,696 160,428 501,128 474,796 
Impairment and other2,496 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 tax57,989 23,952 134,448 69,486 
Losses from investments in unconsolidated joint ventures(4,902)(849)(11,087)(5,870)
Net income132,221 79,429 391,087 283,937 
Net income attributable to non-controlling interests(403)(250)(1,163)(1,180)
Net income attributable to common stockholders131,818 79,179 389,924 282,757 
Net income available to participating securities(181)(147)(518)(515)
Net income available to common stockholders — basic and diluted (Note 12)$131,637 $79,032 $389,406 $282,242 
Weighted average common shares outstanding — basic612,000,811 610,845,820 611,849,302 609,212,132 
Weighted average common shares outstanding — diluted613,580,042 612,647,588 613,155,041 610,741,723 
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 


The accompanying notes are an integral part of these condensed consolidated financial statements.
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INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
(unaudited)

For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2023202220232022
Net income$132,221 $79,429 $391,087 $283,937 
Other comprehensive income
Unrealized gains on interest rate swaps27,845 102,940 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 income6,764 112,531 21,830 380,316 
Comprehensive income138,985 191,960 412,917 664,253 
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 

The accompanying notes are an integral part of these condensed consolidated financial statements.
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INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
For the Three and Nine Months Ended September 30, 2023
(in thousands, except share and per share data)
(unaudited)
Common Stock
Number of SharesAmountAdditional
Paid-in Capital		Accumulated DeficitAccumulated Other Comprehensive Income Total Stockholders' EquityNon-Controlling InterestsTotal Equity
Balance as of June 30, 2023611,956,170 $6,120 $11,141,829 $(1,011,060)$112,984 $10,249,873 $32,835 $10,282,708 
Capital distributions— — — — — — (514)(514)
Net income— — — 131,818 — 131,818 403 132,221 
Dividends and dividend equivalents declared ($0.26 per share)
— — — (160,540)— (160,540)— (160,540)
Issuance of common stock — settlement of RSUs, net of tax2,069 — (22)— — (22)— (22)
Share-based compensation expense— — 7,925 — — 7,925 1,004 8,929 
Total other comprehensive income— — — — 6,744 6,744 20 6,764 
Balance as of September 30, 2023
611,958,239 $6,120 $11,149,732 $(1,039,782)$119,728 $10,235,798 $33,748 $10,269,546 

Common Stock
Number of SharesAmountAdditional
Paid-in Capital		Accumulated DeficitAccumulated Other Comprehensive IncomeTotal Stockholders' EquityNon-Controlling InterestsTotal Equity
Balance as of December 31, 2022611,411,382 $6,114 $11,138,463 $(951,220)$97,985 $10,291,342 $32,289 $10,323,631 
Capital distributions— — — — — — (1,860)(1,860)
Net income— — — 389,924 — 389,924 1,163 391,087 
Dividends and dividend equivalents declared ($0.78 per share)
— — — (478,486)— (478,486)— (478,486)
Issuance of common stock — settlement of RSUs, net of tax546,857 6 (8,155)— — (8,149)— (8,149)
Share-based compensation expense— — 19,424 — — 19,424 2,069 21,493 
Total other comprehensive income— — — — 21,743 21,743 87 21,830 
Balance as of September 30, 2023
611,958,239 $6,120 $11,149,732 $(1,039,782)$119,728 $10,235,798 $33,748 $10,269,546 


The accompanying notes are an integral part of these condensed consolidated financial statements.
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INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (continued)
For the Three and Nine Months Ended September 30, 2022
(in thousands, except share and per share data)
(unaudited)
Common Stock
Number of SharesAmountAdditional
Paid-in Capital		Accumulated DeficitAccumulated Other Comprehensive Income (Loss)Total Stockholders' EquityNon-Controlling InterestsTotal Equity
Balance as of June 30, 2022610,359,909 $6,104 $11,113,146 $(860,275)$(20,285)$10,238,690 $43,299 $10,281,989 
Capital distributions— — — — — — (488)(488)
Net income— — — 79,179 — 79,179 250 79,429 
Dividends and dividend equivalents declared ($0.22 per share)
— — — (135,042)— (135,042)— (135,042)
Share-based compensation expense— — 6,761 — — 6,761 1,169 7,930 
Total other comprehensive income— — — — 112,104 112,104 427 112,531 
Redemption of OP Units for common stock1,050,000 10 13,351 — 73 13,434 (13,434)— 
Balance as of September 30, 2022
611,409,909 $6,114 $11,133,258 $(916,138)$91,892 $10,315,126 $31,223 $10,346,349 

Common Stock
Number of SharesAmountAdditional
Paid-in Capital		Accumulated DeficitAccumulated Other Comprehensive Income (Loss)Total Stockholders' EquityNon-Controlling InterestsTotal Equity
Balance as of December 31, 2021601,045,438 $6,010 $10,873,539 $(794,869)$(286,938)$9,797,742 $41,062 $9,838,804 
Capital distributions— — — — — — (1,983)(1,983)
Net income— — — 282,757 — 282,757 1,180 283,937 
Dividends and dividend equivalents declared ($0.66 per share)
— — — (404,026)— (404,026)— (404,026)
Issuance of common stock — settlement of RSUs, net of tax659,283 7 (12,857)— — (12,850)— (12,850)
Issuance of common stock — settlement of 2022 Convertible Notes6,216,261 62 141,157 — — 141,219 — 141,219 
Issuance of common stock, net2,438,927 25 98,342 — — 98,367 — 98,367 
Share-based compensation expense— — 19,726 — — 19,726 2,839 22,565 
Total other comprehensive income— — — — 378,757 378,757 1,559 380,316 
Redemption of OP Units for common stock1,050,000 10 13,351 — 73 13,434 (13,434)— 
Balance as of September 30, 2022
611,409,909 $6,114 $11,133,258 $(916,138)$91,892 $10,315,126 $31,223 $10,346,349 


The accompanying notes are an integral part of these condensed consolidated financial statements.
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INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
For the Nine Months
Ended September 30,
20232022
Operating Activities:
Net income$391,087 $283,937 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization501,128 474,796 
Share-based compensation expense21,493 22,565 
Amortization of deferred financing costs12,003 11,105 
Amortization of debt discounts1,335 1,254 
Provisions for impairment342 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 instruments7,011 7,135 
Loss from investments in unconsolidated joint ventures, net of operating distributions13,370 7,152 
Other non-cash amounts included in net income4,236 6,049 
Changes in operating assets and liabilities:
Other assets, net(19,466)(1,953)
Accounts payable and accrued expenses185,826 139,884 
Resident security deposits4,559 8,113 
Other liabilities31,181 9,157 
Net cash provided by operating activities1,019,544 903,946 
Investing Activities:
Amounts deposited and held by others5,212 (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 properties354,409 181,569 
Repayment proceeds from retained debt securities627 42,404 
Investments in equity securities(32,610)(14,340)
Proceeds from sale of investments in equity securities— 5,762 
Investments in unconsolidated joint ventures(442)(166,588)
Non-operating distributions from unconsolidated joint ventures9,613 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)— 
Proceeds from unsecured notes790,144 598,434 
Proceeds from term loan facilities— 150,000 
Proceeds from revolving facility150,000 130,000 
Payments on revolving facility(150,000)(130,000)
Proceeds from issuance of common stock, net— 98,367 
Deferred financing costs paid(7,741)(13,043)
Other financing activities(2,107)(15,655)
Net cash provided by (used in) financing activities276,016 (450,819)
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INVITATION HOMES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
For the Nine Months
Ended September 30,
20232022
Change in cash, cash equivalents, and restricted cash525,964 (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, net1,779 5,805 
Cash paid for income taxes86 1,497 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases4,597 4,561 
Financing cash flows from finance leases2,101 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 end10,801 11,562 
Transfer of residential property, net to other assets, net for held for sale assets122,329 65,074 
Change in other comprehensive income from cash flow hedges14,860 373,244 
ROU assets obtained in exchange for operating lease liabilities72 1,940 
ROU assets obtained in exchange for finance lease liabilities2,057 295 
Net settlement of 2022 Convertible Notes in shares of common stock— 141,219


The accompanying notes are an integral part of these condensed consolidated financial statements.
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INVITATION HOMES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
Note 1—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.
Note 2—Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission (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.
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INVITATION HOMES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
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.
14

INVITATION HOMES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
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.
Note 3—Investments in Single-Family Residential Properties
The following table sets forth the net carrying amount associated with our properties by component:
September 30,
2023		December 31, 2022
Land$4,907,452 $4,800,110 
Single-family residential property15,915,306 15,228,631 
Capital improvements563,024 548,700 
Equipment126,939 123,494 
Total gross investments in the properties21,512,721 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.
15

INVITATION HOMES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
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.
Note 4—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,
2023		December 31, 2022
Cash and cash equivalents$762,638 $262,870 
Restricted cash217,253 191,057 
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.
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INVITATION HOMES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
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,
2023		December 31, 2022
Resident security deposits$180,450 $175,829 
Collections12,456 7,415 
Property taxes18,747 2,717 
Letters of credit2,612 2,109 
Capital expenditures2,297 2,297 
Special and other reserves691 690 
Total$217,253 $191,057 
Note 5—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 OwnedCarrying Value
Ownership PercentageSeptember 30,
2023		December 31, 2022September 30,
2023		December 31, 2022
Pathway Property Company(1)
100.0%473340$125,613 $131,542 
2020 Rockpoint JV(1)
20.0%2,6092,61064,745 70,103 
FNMA(2)
10.0%44248835,799 46,151
Pathway Operating Company(3)
15.0%N/AN/A20,90922,011 
2022 Rockpoint JV(1)
16.7%13213210,964 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.
17

INVITATION HOMES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollar amounts in thousands)
(unaudited)
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.
Note 6—Other Assets
As of September 30, 2023 and December 31, 2022, the balances in other assets, net are as follows:
September 30,
2023		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, net86,617 86,980 
Rent and other receivables, net58,874 54,091 
Investments in equity securities55,136 22,413 
Prepaid expenses43,333 41,972 
Held for sale assets(1)
35,778 29,842 
Corporate fixed assets, net24,460 24,484 
ROU lease assets — operating and finance, net13,723 16,534 
Deferred financing costs, net3,702 5,850 
Other18,624 14,561 
Total$570,034 $513,629 
(1)As of September 30, 2023 and December 31, 2022,