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Invitation Homes (INVH)

Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The Company's mission, 'Together with you, it makes a house a home,' reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

Company profile

Ticker
INVH
Exchange
CEO
Dallas B. Tanner
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
2013-1 IH Borrower G.P. LLC • 2013-1 IH Borrower L.P. • 2013-1 IH Equity Owner G.P. LLC • 2013-1 IH Equity Owner L.P. • 2013-1 IH Property Holdco L.P. • 2015-3 IH2 Borrower TRS LLC • 2015-3 IH2 Property Holdco L.P. • 2015-3 IH2 Equity Owner G.P. LLC • 2015-3 IH2 Equity Owner L.P. • 2015-3 IH2 Borrower G.P. LLC ...

INVH stock data

Calendar

28 Jul 22
26 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 479.6M 479.6M 479.6M 479.6M 479.6M 479.6M
Cash burn (monthly) 67.85M (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 196.61M n/a n/a n/a n/a n/a
Cash remaining 282.99M n/a n/a n/a n/a n/a
Runway (months of cash) 4.2 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
17 May 22 Barbe, Cohen Jana Common Stock Grant Acquire A No No 0 4,614 0 24,283
17 May 22 Bronson Richard D. Common Stock Grant Acquire A No No 0 4,614 0 54,493
17 May 22 Michael D Fascitelli Common Stock Grant Acquire A No No 0 4,614 0 64,413
17 May 22 Margolis Joseph D Common Stock Grant Acquire A No No 0 4,614 0 15,346
17 May 22 Kelter Jeffrey E Common Stock Grant Acquire A No No 0 4,614 0 70,717
93.3% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 453 473 -4.2%
Opened positions 49 74 -33.8%
Closed positions 69 63 +9.5%
Increased positions 177 179 -1.1%
Reduced positions 168 174 -3.4%
13F shares Current Prev Q Change
Total value 23.37B 26.98B -13.4%
Total shares 569.29M 575.23M -1.0%
Total puts 2.3M 2.11M +9.4%
Total calls 363K 1.3M -72.1%
Total put/call ratio 6.3 1.6 +292.7%
Largest owners Shares Value Change
Vanguard 87.15M $3.1B +0.6%
CNS Cohen & Steers 82.08M $2.92B +9.8%
BLK Blackrock 49.7M $1.77B +0.1%
STT State Street 28.95M $1.03B -0.4%
PFG Principal Financial Group Inc - Registered Shares 21.8M $775.6M -0.0%
FMR 20.76M $738.56M +4.4%
APG Asset Management US 17.88M $639.01M -0.5%
Resolution Capital 17.7M $629.87M +26.2%
DSECF Daiwa Securities 14.56M $518.1M +7.7%
IVZ Invesco 13.16M $468.14M -1.9%
Largest transactions Shares Bought/sold Change
PGGM Investments 0 -10.73M EXIT
CNS Cohen & Steers 82.08M +7.33M +9.8%
Resolution Capital 17.7M +3.68M +26.2%
GS Goldman Sachs 4.62M -2.95M -39.0%
Millennium Management 1.75M -2.37M -57.5%
Centersquare Investment Management 11.49M +2.09M +22.3%
AMP Capital Investors 0 -1.78M EXIT
Parametric Portfolio Associates 0 -1.2M EXIT
Canada Pension Plan Investment Board 7.76M +1.19M +18.1%
Nuveen Asset Management 2.62M -1.15M -30.6%

Financial report summary

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Risks
  • Our operating results are subject to general economic conditions and risks associated with our real estate assets.
  • Our business, results of operations, financial condition, and cash flows may be adversely affected by pandemics and outbreaks of infectious disease, particularly the ongoing COVID-19 pandemic.
  • We are employing a business model with a limited track record, which may make our business difficult to evaluate.
  • We have a limited operating history and may not be able to operate our business successfully or generate sufficient cash flows to make or sustain distributions to our stockholders.
  • We may not be able to effectively manage our growth, and any failure to do so may have an adverse effect on our business and operating results.
  • A significant portion of our costs and expenses are fixed, and we may not be able to adapt our cost structure to offset declines in our revenue.
  • Increasing property taxes, HOA fees, and insurance costs may negatively affect our financial results.
  • Inflation could adversely affect our business and financial results.
  • We recorded net losses in the past and we may experience net losses in the future.
  • We are dependent on our executive officers and dedicated associates, and the departure of any of our key associates could materially and adversely affect us. We also face intense competition for the employment of highly skilled managerial, investment, financial, and operational associates. Additionally, our results of operations can be adversely affected by labor shortages, turnover, and labor cost increases.
  • Our investments are and will continue to be concentrated in our markets and in the single-family properties sector of the real estate industry, which exposes us to seasonal fluctuations in rental demand and downturns in our markets or in the single-family properties sector.
  • We may not be able to effectively control the timing and costs relating to the renovation and maintenance of our properties, which may adversely affect our operating results and ability to make distributions to our stockholders.
  • We face significant competition in the leasing market for quality residents, which may limit our ability to lease our single-family homes on favorable terms.
  • We intend to continue to acquire properties from time to time consistent with our investment strategy even if the rental and housing markets are not as favorable as they have been in the recent past, which could adversely impact anticipated yields.
  • Competition in identifying and acquiring our properties could adversely affect our ability to implement our business and growth strategies, which could materially and adversely affect us.
  • Compliance with governmental laws, regulations, and covenants that are applicable to our properties or that may be passed in the future, including affordability covenants, permit, license, and zoning requirements, may adversely affect our ability to make future acquisitions, renovations, or dispositions, result in significant costs, delays, or losses, and adversely affect our growth strategy.
  • Tenant relief laws, including laws regulating evictions, rent control laws, and other regulations that limit our ability to increase rental rates may negatively impact our rental income and profitability.
  • We may become a target of legal demands, litigation (including class actions), and negative publicity by tenant and consumer rights organizations, which could directly limit and constrain our operations and may result in significant litigation expenses and reputational harm.
  • Our business is subject to laws and regulations regarding privacy, data protection, consumer protection, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary penalties, or otherwise harm our business.
  • Our evaluation of properties involves a number of assumptions that may prove inaccurate, which could result in us paying too much for properties we acquire and/or overvaluing our properties or our properties failing to perform as we expect.
  • Our dependence upon third parties for key services may have an adverse effect on our operating results or reputation if the third parties fail to perform.
  • Title defects could lead to material losses on our investments in our properties.
  • We are subject to certain risks associated with bulk portfolio acquisitions and dispositions and acquisitions through an auction process.
  • Our strategy to acquire homes from third party homebuilders could subject us to significant risks that could adversely affect our financial condition, cash flows, and operating results.
  • Contingent or unknown liabilities could adversely affect our financial condition, cash flows, and operating results.
  • A significant number of our residential properties are part of HOAs and we and our residents are subject to the rules and regulations of such HOAs, which are subject to change and which may be arbitrary or restrictive, and violations of such rules may subject us to additional fees and penalties and litigation with such HOAs, which would be costly.
  • Vacant properties could be difficult to lease, which could adversely affect our revenues.
  • Leasing fraud could adversely affect our business, financial condition, and results of operations.
  • We rely on information supplied by prospective residents in managing our business.
  • We depend on our residents and their willingness to meet their lease obligations and renew their leases for substantially all of our revenues. Poor resident selection, defaults, and non-renewals by our residents may adversely affect our reputation, financial performance, and ability to make distributions to our stockholders.
  • Our leases are relatively short-term, exposing us to the risk that we may have to re-lease our properties frequently, which we may be unable to do on attractive terms, on a timely basis, or at all.
  • Many factors impact the single-family rental market, and if rents in our markets do not increase sufficiently to keep pace with rising costs of operations, our income and distributable cash could decline.
  • We may not have control over timing and costs arising from renovating our properties, and the cost of maintaining rental properties is generally higher than the cost of maintaining owner-occupied homes, which will affect our results of operations and may adversely impact our ability to make distributions to our stockholders.
  • Declining real estate valuations and impairment charges could adversely affect our financial condition and operating results.
  • We are highly dependent on information systems, and systems failures could significantly disrupt our business, which may, in turn, negatively affect us and the value of our common stock.
  • Security breaches and other disruptions could compromise our information systems and expose us to liability, which would cause our business and reputation to suffer.
  • Our participation in joint venture investments may limit our ability to invest in certain markets, and we may be adversely affected by our lack of sole decision-making authority, our reliance on joint venture partners’ financial condition, and disputes between us and our joint venture partners.
  • We are subject to litigation and regulatory proceedings.
  • We may suffer losses that are not covered by insurance.
  • Eminent domain could lead to material losses on our investments in our properties.
  • We may have difficulty selling our real estate investments, and our ability to distribute all or a portion of the net proceeds from any such sale to our stockholders may be limited.
  • Climate change, related legislative and regulatory responses to climate change, and the transition to a lower-carbon economy may adversely affect our business.
  • We are subject to risks from natural disasters such as earthquakes and severe weather.
  • Environmentally hazardous conditions may adversely affect us.
  • We are subject to increasing scrutiny from investors and others regarding our environmental, social, governance, or sustainability, responsibilities, which could result in additional costs or risks and adversely impact our reputation, associate retention, and ability to raise capital from such investors.
  • Our cash flows and operating results could be adversely affected by required payments of debt or related interest and other risks of our debt financing.
  • We utilize a significant amount of indebtedness in the operation of our business.
  • We may be unable to obtain financing through the debt and equity markets, which would have a material adverse effect on our growth strategy and our financial condition and results of operations.
  • Secured indebtedness exposes us to the possibility of foreclosure on our ownership interests in our rental homes.
  • Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition.
  • We have and may continue to utilize non-recourse long-term mortgage loans, and such structures may expose us to certain risks not prevalent in other debt financings, which could affect the availability and attractiveness of this financing option or otherwise result in losses to us.
  • Offerings of additional debt securities or equity securities that rank senior to our common stock may adversely affect the market price of our common stock.
  • Failure to hedge effectively against interest rate increases may adversely affect our results of operations and our ability to make distributions to our stockholders.
  • Expected phasing out of LIBOR may adversely affect the capital markets and our ability to raise capital. When LIBOR is discontinued, our variable rate debt agreements and financial instruments may be calculated using another base rate.
  • Provisions of Maryland law may limit the ability of a third party to acquire control of us by requiring our board of directors or stockholders to approve proposals to acquire our company or effect a change in control.
  • Our board of directors may approve the issuance of stock, including preferred stock, with terms that may discourage a third party from acquiring us.
  • Our rights and the rights of our stockholders to take action against our directors and officers are limited.
  • If we do not maintain our qualification as a REIT, we will be subject to tax as a regular domestic corporation and could face a substantial tax liability.
  • REITs, in certain circumstances, may incur tax liabilities that would reduce our cash flows.
  • Complying with REIT requirements may cause us to forgo otherwise attractive opportunities and limit our expansion opportunities.
  • Complying with REIT requirements may force us to liquidate or restructure otherwise attractive investments.
  • The prohibited transactions tax may limit our ability to engage in sale transactions.
  • Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.
  • Even if we qualify to be subject to United States federal income tax as a REIT, we could be subject to tax on any unrealized net built-in gains in certain assets.
  • Our charter does not permit any person to own more than 9.8% of our outstanding common stock or of our outstanding stock of all classes or series, and attempts to acquire our common stock or our stock of all other classes or series in excess of these 9.8% limits would not be effective without an exemption from these limits by our board of directors.
  • The cash available for distribution to stockholders may not be sufficient to pay dividends at expected levels, nor can we assure you of our ability to make distributions in the future. We may use borrowed funds or our own funds to make distributions.
  • We may choose to make distributions in our own stock that require you to pay income taxes in excess of any cash distributions.
  • We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating flexibility, and reduce the price of our common stock.
  • Our ownership of TRSs is subject to limitations, and our transactions with our TRSs will cause us to be subject to a 100% excise tax on certain income or deductions if those transactions are not conducted on arm’s-length terms.
Management Discussion
  • As of June 30, 2022 and 2021, we owned 83,093 and 80,612 single-family rental homes, respectively, in our total portfolio. During the three months ended June 30, 2022 and 2021, we acquired 511 and 494 homes, respectively, and sold 176 and 212 homes, respectively. During the three months ended June 30, 2022 and 2021, we owned an average of 82,877 and 80,412 single-family rental homes, respectively. During the six months ended June 30, 2022 and 2021, we acquired 1,029 and 895 homes, respectively, and sold 317 and 460 homes, respectively. During the six months ended June 30, 2022 and 2021, we owned an average of 82,726 and 80,315 single-family rental homes, respectively.
  • We believe presenting information about the portion of our total portfolio that has been fully operational for the entirety of both a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods, and about trends in our organic business. To do so, we provide information regarding the performance of our Same Store portfolio.
  • As of June 30, 2022, our Same Store portfolio consisted of 75,215 single-family rental homes.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Avg
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