Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38004 | |
Entity Registrant Name | Invitation Homes Inc. | |
Entity Central Index Key | 0001687229 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period focus | Q2 | |
Amendment Flag | false | |
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, $0.01 par value | |
Trading Symbol | INVH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Stock Outstanding (in shares) | 537,680,811 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments in single-family residential properties: | ||
Land | $ 4,522,979 | $ 4,561,441 |
Building and improvements | 13,718,005 | 13,668,533 |
Total gross investments in the properties | 18,240,984 | 18,229,974 |
Less: accumulated depreciation | (1,777,457) | (1,543,914) |
Investments in single-family residential properties, net | 16,463,527 | 16,686,060 |
Cash and cash equivalents | 77,046 | 144,940 |
Restricted cash | 242,409 | 215,051 |
Goodwill | 258,207 | 258,207 |
Other assets, net | 672,964 | 759,170 |
Total assets | 17,714,153 | 18,063,428 |
Liabilities: | ||
Mortgage loans, net | 6,509,962 | 7,201,654 |
Notes and Loans Payable | 400,869 | 0 |
Term loan facility, net | 1,492,304 | 1,490,860 |
Revolving facility | 0 | 0 |
Convertible senior notes, net | 561,830 | 557,301 |
Accounts payable and accrued expenses | 227,983 | 169,603 |
Resident security deposits | 151,995 | 148,995 |
Other liabilities | 331,742 | 125,829 |
Total liabilities | 9,676,685 | 9,694,242 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding as of June 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 525,126,947 and 520,647,977 outstanding as of June 30, 2019 and December 31, 2018, respectively | 5,251 | 5,206 |
Additional paid-in capital | 8,686,927 | 8,629,462 |
Accumulated deficit | (469,129) | (392,594) |
Accumulated other comprehensive loss | (265,370) | (12,963) |
Total stockholders' equity | 7,957,679 | 8,229,111 |
Non-controlling interests | 79,789 | 140,075 |
Total equity | 8,037,468 | 8,369,186 |
Total liabilities and equity | $ 17,714,153 | $ 18,063,428 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 shares, 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) | 525,126,947 | 520,647,977 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Rental revenues and other property income | $ 441,582 | $ 432,426 | $ 877,082 | $ 856,095 |
Expenses: | ||||
Property operating and maintenance | 166,574 | 165,423 | 326,920 | 326,190 |
Property management expense | 16,021 | 14,348 | 31,181 | 31,512 |
General and administrative | 15,956 | 24,636 | 42,494 | 52,272 |
Interest expense | 95,706 | 97,226 | 189,689 | 189,525 |
Depreciation and amortization | 133,031 | 146,450 | 266,640 | 290,950 |
Impairment and other | 1,671 | 4,103 | 7,063 | 10,224 |
Total expenses | 428,959 | 452,186 | 863,987 | 900,673 |
Other, net | 610 | 1,631 | 3,735 | 3,367 |
Gain on sale of property, net of tax | 26,172 | 3,941 | 43,744 | 9,443 |
Net income (loss) | 39,405 | (14,188) | 60,574 | (31,768) |
Net (income) loss attributable to non-controlling interests | (463) | 242 | (810) | 553 |
Net income (loss) attributable to common stockholders | 38,942 | (13,946) | 59,764 | (31,215) |
Net income available to participating securities | (109) | (209) | (215) | (431) |
Net income (loss) available to common stockholders — basic and diluted (Note 12) | $ 38,833 | $ (14,155) | $ 59,549 | $ (31,646) |
Weighted average common shares outstanding — basic | 525,070,036 | 520,509,058 | 523,265,455 | 520,087,371 |
Weighted average common shares outstanding — diluted | 525,933,643 | 520,509,058 | 524,190,469 | 520,087,371 |
Net income (loss) per common share — basic | $ 0.07 | $ (0.03) | $ 0.11 | $ (0.06) |
Net income (loss) per common share — diluted | $ 0.07 | $ (0.03) | $ 0.11 | $ (0.06) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 39,405 | $ (14,188) | $ 60,574 | $ (31,768) |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on interest rate swaps | (148,599) | 15,826 | (236,467) | 75,726 |
Gains from interest rate swaps reclassified into earnings from accumulated other comprehensive income | (7,891) | (3,596) | (18,754) | (3,325) |
Other comprehensive income (loss) | (156,490) | 12,230 | (255,221) | 72,401 |
Comprehensive income (loss) | (117,085) | (1,958) | (194,647) | 40,633 |
Comprehensive (income) loss attributable to non-controlling interests | 1,312 | 48 | 2,583 | (705) |
Comprehensive income (loss) attributable to common stockholders | $ (115,773) | $ (1,910) | $ (192,064) | $ 39,928 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2017 | $ 8,649,875 | $ 5,192 | $ 8,602,603 | $ (157,595) | $ 47,885 | $ 8,498,085 | $ 151,790 |
Beginning Balance, common stock, shares outstanding (in shares) at Dec. 31, 2017 | 519,173,142 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | (2,033) | (2,033) | |||||
Net income (loss) | (31,768) | (31,215) | (31,215) | (553) | |||
Dividends and dividend equivalents declared | (114,991) | (114,991) | (114,991) | ||||
Issuance of common stock — settlement of RSUs, net of tax | (7,421) | $ 9 | (7,430) | (7,421) | |||
Issuance of common stock — settlement of RSUs, net of tax (in shares) | 915,190 | ||||||
Share-based compensation expense | 17,514 | 17,514 | 17,514 | ||||
Total other comprehensive income | 72,401 | 71,143 | 71,143 | 1,258 | |||
Redemption of OP Units for common stock | 0 | $ 4 | 6,615 | (74) | 6,545 | (6,545) | |
Redemption of OP Units for common stock (in shares) | 405,037 | ||||||
Ending Balance at Jun. 30, 2018 | 8,583,577 | $ 5,205 | 8,619,302 | (303,801) | 118,954 | 8,439,660 | 143,917 |
Ending Balance, common stock, shares outstanding (in shares) at Jun. 30, 2018 | 520,493,369 | ||||||
Beginning Balance at Mar. 31, 2018 | 8,636,897 | $ 5,204 | 8,612,110 | (232,296) | 106,918 | 8,491,936 | 144,961 |
Beginning Balance, common stock, shares outstanding (in shares) at Mar. 31, 2018 | 520,364,636 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | (996) | (996) | |||||
Net income (loss) | (14,188) | (13,946) | (13,946) | (242) | |||
Dividends and dividend equivalents declared | (57,559) | (57,559) | (57,559) | ||||
Issuance of common stock — settlement of RSUs, net of tax | (823) | $ 1 | (824) | (823) | |||
Issuance of common stock — settlement of RSUs, net of tax (in shares) | 128,733 | ||||||
Share-based compensation expense | 8,016 | 8,016 | 8,016 | ||||
Total other comprehensive income | 12,230 | 12,036 | 12,036 | 194 | |||
Ending Balance at Jun. 30, 2018 | 8,583,577 | $ 5,205 | 8,619,302 | (303,801) | 118,954 | 8,439,660 | 143,917 |
Ending Balance, common stock, shares outstanding (in shares) at Jun. 30, 2018 | 520,493,369 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 8,369,186 | $ 5,206 | 8,629,462 | (392,594) | (12,963) | 8,229,111 | 140,075 |
Beginning Balance, common stock, shares outstanding (in shares) at Dec. 31, 2018 | 520,647,977 | 520,647,977 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | $ (1,886) | (1,886) | |||||
Net income (loss) | 60,574 | 59,764 | 59,764 | 810 | |||
Dividends and dividend equivalents declared | (136,299) | (136,299) | (136,299) | ||||
Issuance of common stock — settlement of RSUs, net of tax | (8,108) | $ 9 | (8,117) | (8,108) | |||
Issuance of common stock — settlement of RSUs, net of tax (in shares) | 905,677 | ||||||
Share-based compensation expense | 9,222 | 8,862 | 8,862 | 360 | |||
Total other comprehensive income | (255,221) | (251,828) | (251,828) | (3,393) | |||
Redemption of OP Units for common stock | $ 0 | $ 36 | 56,720 | (579) | 56,177 | (56,177) | |
Redemption of OP Units for common stock (in shares) | 3,573,293 | ||||||
Issuance of common stock — IPO (in shares) | 4,478,970 | ||||||
Ending Balance at Jun. 30, 2019 | $ 8,037,468 | $ 5,251 | 8,686,927 | (469,129) | (265,370) | 7,957,679 | 79,789 |
Ending Balance, common stock, shares outstanding (in shares) at Jun. 30, 2019 | 525,126,947 | 525,126,947 | |||||
Beginning Balance at Mar. 31, 2019 | $ 8,221,368 | $ 5,250 | 8,685,058 | (439,737) | (110,655) | 8,139,916 | 81,452 |
Beginning Balance, common stock, shares outstanding (in shares) at Mar. 31, 2019 | 524,989,775 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital distributions | (711) | (711) | |||||
Net income (loss) | 39,405 | 38,942 | 38,942 | 463 | |||
Dividends and dividend equivalents declared | (68,334) | (68,334) | (68,334) | ||||
Issuance of common stock — settlement of RSUs, net of tax | (1,385) | $ 1 | (1,386) | (1,385) | |||
Issuance of common stock — settlement of RSUs, net of tax (in shares) | 137,172 | ||||||
Share-based compensation expense | 3,615 | 3,255 | 3,255 | 360 | |||
Total other comprehensive income | (156,490) | (154,715) | (154,715) | (1,775) | |||
Ending Balance at Jun. 30, 2019 | $ 8,037,468 | $ 5,251 | $ 8,686,927 | $ (469,129) | $ (265,370) | $ 7,957,679 | $ 79,789 |
Ending Balance, common stock, shares outstanding (in shares) at Jun. 30, 2019 | 525,126,947 | 525,126,947 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | May 15, 2019 | Feb. 13, 2019 | Nov. 14, 2018 | Aug. 16, 2018 | May 15, 2018 | Feb. 13, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||||||||
Dividends declared per common share | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities: | ||
Net income (loss) | $ 60,574 | $ (31,768) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 266,640 | 290,950 |
Share-based compensation expense | 9,222 | 17,514 |
Amortization of deferred leasing costs | 5,060 | 5,833 |
Amortization of deferred financing costs | 20,158 | 9,678 |
Amortization of debt discounts | 4,709 | 4,508 |
Provisions for impairment | 7,329 | 2,274 |
Gain on sale of property, net of tax | (43,744) | (9,443) |
Change in fair value of derivative instruments | 2,170 | 5,852 |
Other noncash amounts included in net income (loss) | 785 | (1,638) |
Changes in operating assets and liabilities: | ||
Other assets, net | (9,823) | (7,668) |
Accounts payable and accrued expenses | 48,771 | 29,688 |
Resident security deposits | 3,000 | 5,386 |
Other liabilities | 491 | (10,831) |
Net cash provided by operating activities | 375,342 | 310,335 |
Investing Activities: | ||
Amounts deposited and held by others | (966) | 9,273 |
Acquisition of single-family residential properties | (246,306) | (120,149) |
Initial renovations to single-family residential properties | (18,749) | (25,750) |
Other capital expenditures for single-family residential properties | (70,161) | (60,916) |
Proceeds from sale of single-family residential properties | 336,523 | 122,820 |
Purchases of investments in debt securities | 0 | (163,719) |
Repayment proceeds from retained debt securities | 35,687 | 59,213 |
Other investing activities | 3,163 | (10,146) |
Net cash provided by (used in) investing activities | 39,191 | (189,374) |
Financing Activities: | ||
Payment of dividends and dividend equivalents | (136,299) | (114,991) |
Distributions to non-controlling interests | (1,886) | (2,033) |
Payment of taxes related to net share settlement of RSUs | (8,108) | (7,421) |
Proceeds from mortgage loans | 0 | 3,274,179 |
Payments on mortgage loans | (709,383) | (3,198,588) |
Proceeds from secured term loan | 403,464 | 0 |
Proceeds from revolving facility | 135,000 | 100,000 |
Payments on revolving facility | (135,000) | (135,000) |
Deferred financing costs paid | (2,613) | (42,489) |
Other financing activities | (244) | (1,258) |
Net cash used in financing activities | (455,069) | (127,601) |
Change in cash, cash equivalents, and restricted cash | (40,536) | (6,640) |
Cash, cash equivalents, and restricted cash, beginning of period (Note 4) | 359,991 | 416,562 |
Cash, cash equivalents, and restricted cash, end of period (Note 4) | 319,455 | 409,922 |
Supplemental cash flow disclosures: | ||
Interest paid, net of amounts capitalized | 164,766 | 174,915 |
Cash paid for income taxes | 1,699 | 1,373 |
Operating cash flows from operating leases | 2,581 | |
Noncash investing and financing activities: | ||
Accrued renovation improvements at period end | 6,188 | 6,214 |
Accrued residential property capital improvements at period end | 12,617 | 8,879 |
Transfer of residential property, net to other assets, net for held for sale assets | 198,138 | 93,888 |
Change in other comprehensive income (loss) from cash flow hedges | (257,358) | 66,894 |
ROU assets obtained in exchange for operating lease liabilities | $ 1,721 | |
Capital leases | $ 2,448 |
Organization and Formation
Organization and Formation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Formation | Note 1—Organization and Formation Invitation Homes Inc. (“INVH”), a real estate investment trust (“REIT”), 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. In preparation for our initial public offering (“IPO”), INVH was incorporated in the State of Delaware on October 4, 2016. From inception through the date of the IPO, INVH did not engage in any business or activity. Additionally, INVH LP and its general partner Invitation Homes OP GP LLC (the “OP General Partner”) were formed on December 14, 2016, and INVH LP began negotiating and entering into certain debt and hedge instruments upon its inception in anticipation of our IPO. On February 6, 2017, INVH completed the 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, $0.01 par value per share. In connection with certain pre-IPO reorganization transactions, INVH LP became (1) owned by INVH directly and through INVH’s wholly owned subsidiary, the OP General Partner, and (2) the owner of all of the assets, liabilities, and operations of certain pre-IPO owners. These transactions were accounted for as a reorganization of entities under common control utilizing historical cost basis. 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 6 ). References to “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer, collectively, to INVH, INVH LP, and the consolidated subsidiaries of INVH LP. References to “SWH” refer to Starwood Waypoint Homes and its subsidiaries. Merger with Starwood Waypoint Homes On November 16, 2017 (the “Merger Date”), INVH, INVH LP, IH Merger Sub, LLC, a Delaware limited liability company and direct wholly owned subsidiary of INVH, SWH, and Starwood Waypoint Homes Partnership, L.P., a Delaware limited partnership and a subsidiary of SWH, (“SWH Partnership”) effectuated a series of transactions which resulted in SWH and SWH Partnership being merged into INVH and INVH LP, respectively, with INVH and INVH LP being the surviving entities (the “Mergers”). In connection with th e Mergers, each outstanding SWH common share was converted into shares of our common stock and each outstanding unit of SWH Partnership was converted into common units of limited partnership interests in INVH LP. Our limited partnership interests consist of the aforementioned common units and other classes of limited partnership interests that may be issued (the “OP Units”). As of June 30, 2019 , INVH owns a 99.0% partnership interest in INVH LP and has the full, exclusive, and complete responsibility for and discretion over the day to day management and control of INVH LP. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2—Significant Accounting Policies Basis of Presentation The accompanying interim 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 (“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, 2018 . 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 six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . We consolidate entities when we own, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. We consolidate variable interest entities (“VIEs”) in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation , if we are the primary beneficiary of the VIE as determined by our power to direct the VIE’s activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. As described in Note 5 , as a result of the Mergers we acquired an investment in a joint venture with the Federal National Mortgage Association (“FNMA”), which is a voting interest entity. We do not hold a controlling financial interest in the joint venture but have significant influence over its operating and financial policies. Additionally, FNMA holds certain substantive participating rights that preclude the presumption of control by us; as such, we account for our investment using the equity method. In connection with the Mergers, we initially recorded this investment at fair value in connection with purchase accounting and have 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 venture are reported as part of operating cash flows while distributions related to a capital transaction, such as a refinancing transaction or sale, are reported as investing activities. Non-controlling interests represent the OP Units held by a third party as a result of the Mergers and any vested OP 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 June 30, 2019 and December 31, 2018 , and the condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 include an allocation of the net income (loss) attributable to the non-controlling interest holders. Vested 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. Reclassifications Certain reclassifications have been made to prior periods to conform with current reporting on the condensed consolidated statements of operations. We combined other property income of $28,578 and $56,455 , respectively, for the three and six months ended June 30, 2018 into rental revenues and other property income . We reclassified interest expense of $97,226 and $189,525 , respectively, for the three and six months ended June 30, 2018 into total expenses. We also no longer present loss from continuing operations and have reclassified gain on sale of property, net of tax of $3,941 and $9,443 , respectively, for the three and six months ended June 30, 2018 accordingly. These reclassifications did not have any effect on the total reported net loss for the three and six months ended June 30, 2018 . Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , (the “New Lease Standard”), which requires lessees to recognize assets and liabilities on the condensed balance sheets for the rights and obligations created by all leases with terms of more than one year. Lessor accounting remains similar to previous GAAP, while aligning with ASC 606, Revenue from Contracts with Customers (“ASC 606”). We adopted the New Lease Standard using the optional transition approach as of January 1, 2019. As such, previously reported financial information was not updated, and additional disclosures required under the New Lease Standard are not provided for periods prior to January 1, 2019. Additionally, we elected the practical expedient package related to lease identification, lease classification, and initial direct costs. As such, we have not reassessed our existing contracts and leases for these items. We did not elect the hindsight practical expedient, which permits entities to use hindsight in determining lease term and assessing impairment. As a lessor, our leases with residents are classified as operating leases under the New Lease Standard, and thus the pattern of recognition of rental revenue and other property income remains unchanged from previous lease accounting guidance as adjusted by ASC 606. Rental revenues and other property income are recorded net of any concessions and uncollectible amounts for all periods presented. As a lessee, adoption of the New Lease Standard resulted in the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases on our condensed consolidated balance sheet; however, our accounting for finance leases remains substantially unchanged. On January 1, 2019, we recorded the cumulative effect of adoption of the New Lease Standard on our condensed consolidated balance sheet which resulted in an increase in other assets and other liabilities of $14,118 and $14,118 , respectively. In August 2018, the SEC issued Securities Act Release No. 33-10532, Disclosure Update and Simplification , which amends certain of its disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. The Disclosure Update and Simplification requires us to disclose and analyze changes in stockholders’ equity for the current quarter and year to date interim periods as well as the comparative periods of the prior year. We have conformed the presentation of our condensed consolidated statements of equity with this requirement for all periods presented. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates. Accounting Policies There have been no changes to our significant accounting policies that have had a material impact on our condensed consolidated financial statements and related notes, compared to those policies disclosed in our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 other than our adoption of the New Lease Standard as disclosed above. Revenue Recognition and Resident Receivables Rental revenues and other property income, net of any concessions and uncollectible amounts, consists primarily of rents collected under lease agreements related to our single-family residential properties. We enter into leases directly with our residents, and our leases typically have a term of one to two years. We elected the practical expedient not to separate the lease and nonlease components of these operating leases with our residents. Our lease components consist primarily of rental income, pet rent, and smart home system fees. Nonlease components include resident reimbursements for utilities and various other fees, including late fees and lease termination fees, among others. The lease component is the predominant component in these arrangements, and as such, we recognize rental revenues and other property income in accordance with the New Lease Standard for the three and six months ended June 30, 2019 , and in accordance with previous GAAP for the three and six months ended June 30, 2018 . 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 the three and six months ended June 30, 2019 , rental revenues and other property income includes $23,253 and $44,583 , respectively, of variable lease payments. Sales taxes and other similar taxes assessed by governmental authorities that we collect from residents are excluded from our rental revenues and other property income. Leases Entered Into as a Lessee We lease our corporate and regional offices, related office equipment, and a fleet of vehicles for use by our field associates. As of January 1, 2019, these leases are accounted for pursuant to the New Lease Standard (see Note 5 and Note 14). We account for leases for our corporate and regional offices as operating leases. In addition to monthly rent payments, we reimburse the lessors of our office spaces for our share of operating expenses as defined in the leases. Such amounts are not included in the measurement of the lease liability but are recognized as a variable lease expense when incurred. At this time, it is not reasonably certain that we will exercise any of the renewal or termination options on these leases, and the measurement of the ROU asset and lease liability is calculated accordingly. We have elected the practical expedient under which the lease components of our office and vehicle fleet leases are not separated from the nonlease components. We have elected the short-term lease recognition exemption for our office equipment leases and therefore do not record these leases on our condensed consolidated balance sheets. These office equipment leases are not material to our condensed consolidated financial statements. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes how companies will measure credit losses for certain financial assets, excluding receivables arising from operating leases. This guidance requires an entity to estimate its expected credit loss and record an allowance based on this estimate so that it is presented at the net amount expected to be collected on the financial asset. The new standard will be effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period, with early adoption permitted beginning after December 15, 2018 and interim periods within that reporting period. We do not anticipate that the adoption of this standard will have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value disclosure requirements for certain financial instruments. This guidance reduces the need for certain disclosure language related to our financial instruments and adds additional support for unobservable inputs used in the calculation of fair values. This new standard will be effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. We do not anticipate that the adoption of this standard will have a material impact on our condensed consolidated financial statements. |
Investments in Single-Family Re
Investments in Single-Family Residential Properties | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Investments in Single-Family Residential Properties | Note 3—Investments in Single-Family Residential Properties The following table sets forth the net carrying amount associated with our properties by component: June 30, December 31, 2018 Land $ 4,522,979 $ 4,561,441 Single-family residential property 13,080,759 13,026,317 Capital improvements 521,531 525,670 Equipment 115,715 116,546 Total gross investments in the properties 18,240,984 18,229,974 Less: accumulated depreciation (1,777,457 ) (1,543,914 ) Investments in single-family residential properties, net $ 16,463,527 $ 16,686,060 As of June 30, 2019 and December 31, 2018 , the carrying amount of the residential properties above includes $119,574 and $120,438 , respectively, of capitalized acquisition costs (excluding purchase price), along with $64,513 and $66,449 , respectively, of capitalized interest, $25,216 and $25,670 , respectively, of capitalized property taxes, $4,642 and $4,694 , respectively, of capitalized insurance, and $2,754 and $2,779 , respectively, of capitalized homeowners’ association (“HOA”) fees. During the three months ended June 30, 2019 and 2018 , we recognized $131,782 and $128,501 , respectively, of depreciation expense related to the components of the properties, $0 and $16,446 , respectively, of amortization related to in-place lease intangible assets, and $1,249 and $1,503 , 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 June 30, 2019 and 2018 , impairments totaling $4,076 and $1,671 , respectively, have been recognized and are included in impairment and other in the condensed consolidated statements of operations. During the six months ended June 30, 2019 and 2018 , we recognized $264,302 and $255,162 , respectively, of depreciation expense related to the components of the properties, $0 and $32,893 , respectively, of amortization related to in-place lease intangible assets, and $2,338 and $2,895 , 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 six months ended June 30, 2019 and 2018 , impairments totaling $7,329 and $2,274 , respectively, have been recognized and are included in impairment and other in the condensed consolidated statements of operations. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | 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: June 30, December 31, 2019 2018 2018 2017 Cash and cash equivalents $ 77,046 $ 166,874 $ 144,940 $ 179,878 Restricted cash 242,409 243,048 215,051 236,684 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 319,455 $ 409,922 $ 359,991 $ 416,562 Pursuant to the terms of the mortgage loans and Secured Term Loan (as defined in Note 6 ), we are required to establish, maintain, and fund from time to time (generally either monthly or at the time borrowings are funded) certain specified reserve accounts. These reserve accounts include, but are not limited to, the following types of accounts: (i) 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 are required to be segregated. We are also required to hold letters of credit as required 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 June 30, 2019 and December 31, 2018 , are set forth in the table below. As of June 30, 2019 and December 31, 2018 , 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. June 30, December 31, 2018 Resident security deposits $ 151,473 $ 150,346 Property taxes 53,052 26,163 Collections 26,830 26,677 Capital expenditures 4,906 5,269 Letters of credit 3,452 3,444 Special and other reserves 2,696 3,152 Total $ 242,409 $ 215,051 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 5—Other Assets As of June 30, 2019 and December 31, 2018 , the balances in other assets, net are as follows: June 30, December 31, 2018 Investments in debt securities, net $ 331,088 $ 366,599 Held for sale assets (1) 151,012 154,077 Investment in unconsolidated joint venture 56,026 56,622 Prepaid expenses 39,577 30,970 Rent and other receivables, net 29,457 33,117 ROU lease assets — operating and finance, net 15,980 N/A Corporate fixed assets, net 10,881 11,792 Derivative instruments (Note 7) 7,841 75,405 Deferred leasing costs, net 6,925 6,316 Amounts deposited and held by others 4,501 1,010 Deferred financing costs, net 3,949 5,134 Other 15,727 18,128 Total $ 672,964 $ 759,170 (1) As of June 30, 2019 and December 31, 2018 , 708 and 738 properties, respectively, are classified as held for sale. Investments in Debt Securities, net In connection with certain of our Securitizations (as defined in Note 6 ), we have retained and purchased certificates totaling $331,088 , net of unamortized discounts of $2,817 , as of June 30, 2019 . These investments in debt securities are classified as held to maturity investments. As of June 30, 2019 and December 31, 2018 , there were no gross unrecognized holding gains or losses, and there were no other than temporary impairments recognized in accumulated other comprehensive income. As of June 30, 2019 , our retained certificates are scheduled to mature over the next three months to eight years . Investment in Unconsolidated Joint Venture We own a 10% interest in a joint venture with FNMA to operate, lease, and manage a portfolio of properties primarily located in Arizona, California, and Nevada. A wholly owned subsidiary of INVH LP is the managing member of the joint venture and is responsible for the operation and management of the properties, subject to FNMA’s approval of major decisions. As of June 30, 2019 and December 31, 2018 , the joint venture owned 718 and 754 properties, respectively. Rent and Other Receivables We lease our properties to residents pursuant to leases that generally have an initial contractual term of at least 12 months , provide for monthly payments, and are cancelable by the resident and us under certain conditions specified in the related lease agreements. 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 June 30, 2019 : June 30, 2019 Operating Leases Finance Leases Other assets $ 14,510 $ 1,470 Other liabilities 15,655 1,462 Weighted average remaining lease term 4 years 2 years Weighted average discount rate 4.0 % 4.0 % Deferred Financing Costs, net In connection with our Revolving Facility (as defined in Note 6 ), we incurred $9,673 of financing costs during the year ended December 31, 2017 , which have been deferred as other assets, net on our condensed consolidated balance sheets. These deferred financing costs are being amortized as interest expense on a straight-line basis over the term of the Revolving Facility. As of June 30, 2019 and December 31, 2018 , the unamortized balances of these deferred financing costs are $3,949 and $5,134 , respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 6—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; (iv) general costs associated with our operations; and (v) distributions and dividends. The following table sets forth a summary of our mortgage loan indebtedness as of June 30, 2019 and December 31, 2018 : Outstanding Principal Balance (4) Origination Date Maturity Date (1) Interest (2) Range of Spreads (3) June 30, December 31, 2018 CSH 2016-2 N/A June 7, 2019 —% N/A $ — $ 442,614 IH 2017-1 (5) April 28, 2017 June 9, 2027 4.23% N/A 995,790 995,826 SWH 2017-1 (6) September 29, 2017 October 9, 2019 3.95% 102-347 bps 758,893 764,685 IH 2017-2 (6)(7) November 9, 2017 December 9, 2019 3.70% 91-231 bps 734,165 856,238 IH 2018-1 (6) February 8, 2018 March 9, 2020 3.51% 76-206 bps 809,506 911,827 IH 2018-2 (6) May 8, 2018 June 9, 2020 3.80% 95-230 bps 1,020,651 1,035,749 IH 2018-3 (6) June 28, 2018 July 9, 2020 3.82% 105-230 bps 1,284,176 1,296,959 IH 2018-4 (6) November 7, 2018 January 9, 2021 3.81% 115-225 bps 951,092 959,578 Total Securitizations 6,554,273 7,263,476 Less: deferred financing costs, net (44,311 ) (61,822 ) Total $ 6,509,962 $ 7,201,654 (1) Maturity date represents repayment date for mortgage loans which have been repaid in full prior to June 30, 2019 . For all other mortgage loans, the maturity dates above reflect all extensions that have been exercised. (2) Except for IH 2017-1, interest rates are based on a weighted average spread over the London Interbank Offered Rate (“LIBOR”) , plus applicable servicing fees; as of June 30, 2019 , LIBOR was 2.40% . Our IH 2017-1 mortgage loan 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. (3) Range of spreads is based on outstanding principal balances as of June 30, 2019 . (4) Outstanding principal balance is net of discounts and does not include deferred financing costs, net. (5) Net of unamortized discount of $2,817 and $2,993 as of June 30, 2019 and December 31, 2018 , respectively. (6) The initial maturity term of each of these mortgage loans is two years , individually subject to three 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 a replacement interest rate cap agreement from an approved counterparty within the required timeframe to the lender ). The maturity dates above reflect all extensions that have been exercised. (7) On July 9, 2019 , we voluntarily prepaid $50,000 of outstanding borrowings with unrestricted cash on hand against the outstanding balance of IH 2017-2 (see Note 15 ). Securitization Transactions For each Securitization transaction, the Borrower Entity executed a loan agreement with a third party lender. Except for IH 2017-1, each outstanding mortgage loan consists of six floating rate components. The two year initial terms are individually subject to three 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 June 30, 2019 and December 31, 2018 , a total of 37,416 and 41,644 homes, respectively, are pledged pursuant to the mortgage loans. 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 Securitizations currently outstanding are wholly owned subsidiaries. We accounted for the transfer 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 certificate classes 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 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 the activities that could impact the Trusts’ economic performance. Therefore, we do not consolidate the Trusts. Retained Certificates Beginning in April 2014 , the Trusts made Certificates available for sale to both domestic and foreign investors. With the introduction of foreign investment, sponsors of the mortgage loans are required to retain a portion of the risk that represents a material net economic interest in each loan. These requirements were further refined in December 2016 pursuant to Regulation RR (the “Risk Retention Rules”) under the Securities Exchange Act of 1934, as amended. As such, loan sponsors are now 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. To fulfill these requirements, Class G certificates for CSH 2016-2 were issued in an amount equal to 5% of the original principal amount of the loans. Per the terms of the CSH 2016-2 mortgage loan agreement, the Class G certificates were restricted certificates that were made available exclusively to the sponsor. We retained these Class G certificates during the time the related Securitization was outstanding, and they were principal only, bearing a stated interest rate of 0.0005% . For IH 2017-1, the Class B certificates 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 SWH 2017-1, IH 2017-2, IH 2018-1, IH 2018-2, IH 2018-3, and IH 2018-4, we retain 5% of each certificate class to meet the Risk Retention Rules. These retained certificates accrue interest at a floating rate of LIBOR plus a spread ranging from 0.76% to 3.47% . The retained certificates total $331,088 and $366,599 as of June 30, 2019 and December 31, 2018 , respectively, and are classified as held to maturity investments and recorded in other assets, net on the condensed consolidated balance sheets (see Note 5 ). 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 June 30, 2019 , 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. 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 six months ended June 30, 2019 and 2018 , we made voluntary and mandatory prepayments of $709,383 and $3,198,588 , respectively, under the terms of the mortgage loan agreements. During the six months ended June 30, 2019, prepayments included the full repayment of the CSH 2016-2 mortgage loan. During the six months ended June 30, 2018 , prepayments included full repayment of the CAH 2014-1, CAH 2014-2, IH 2015-1, IH 2015-2, and IH 2015-3 mortgage loans. Secured Term Loan On June 7, 2019, 2019-1 IH Borrower L.P., 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 (subject to certain adjustments as outlined in the loan agreement) for the twelfth year. 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 June 30, 2019 and December 31, 2018 : Maturity Date Interest (1) June 30, December 31, 2018 Secured Term Loan June 9, 2031 3.59% $ 403,464 $ — Deferred financing costs, net (2,595 ) — Secured Term Loan, net $ 400,869 $ — (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 bears interest at a floating rate based on a spread of 147 bps, including applicable servicing fees, over one month LIBOR (subject to certain adjustments as outlined in the loan agreement) for the twelfth year . Interest payments are made monthly. Collateral As of June 30, 2019 , a total of 3,326 homes are included in the Secured Term Loan’s collateral pool. 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 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 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 June 30, 2019 , 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. 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. Term Loan Facility and Revolving Facility On February 6, 2017, we entered into a credit agreement with a syndicate of banks, financial institutions, and institutional lenders for a credit facility (the “Credit Facility”), which was amended on December 18, 2017 to include entities and homes acquired in the Mergers. The Credit Facility provides $2,500,000 of borrowing capacity and consists of a $1,000,000 revolving facility (the “Revolving Facility”), which will mature on February 6, 2021, with a one year extension option, and a $1,500,000 term loan facility (the “Term Loan Facility”), which will mature on February 6, 2022. The Revolving Facility also includes borrowing capacity available for letters of credit and for short-term borrowings referred to as swing line borrowings, in each case subject to certain sublimits. The Credit Facility provides us with the option to enter into additional incremental credit facilities (including an uncommitted incremental facility that provides us with the option to increase the size of the Revolving Facility and/or the Term Loan Facility by an aggregate amount of up to $1,500,000 ) , subject to certain limitations. Proceeds from the Term Loan Facility were used to repay then-outstanding indebtedness and for general corporate purposes. Proceeds from the Revolving Facility are used for general corporate purposes. The following table sets forth a summary of the outstanding principal amounts under the Credit Facility as of June 30, 2019 and December 31, 2018 : Maturity Interest (1) June 30, December 31, 2018 Term Loan Facility February 6, 2022 4.10% $ 1,500,000 $ 1,500,000 Deferred financing costs, net (7,696 ) (9,140 ) Term Loan Facility, net $ 1,492,304 $ 1,490,860 Revolving Facility February 6, 2021 4.15% $ — $ — (1) Interest rates for the Term Loan Facility and the Revolving Facility are based on LIBOR plus an applicable margin. As of June 30, 2019 , the applicable margins were 1.70% and 1.75% , respectively, and LIBOR was 2.40% . Interest Rate and Fees Borrowings under the Credit Facility bear interest, at our option, at a rate equal to a margin over either (a) a LIBOR rate determined by reference to the Bloomberg LIBOR rate (or comparable or successor rate) for the interest period relevant to such borrowing, or (b) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus 0.50% , and (3) the LIBOR rate that would be payable on such day for a LIBOR rate loan with a one month interest period plus 1.00% . The margin is based on a total leverage based grid. The margin for the Revolving Facility ranges from 0.75% to 1.30% in the case of base rate loans, and 1.75% to 2.30% in the case of LIBOR rate loans. The margin for the Term Loan Facility ranges from 0.70% to 1.30% in the case of base rate loans, and 1.70% to 2.30% in the case of LIBOR rate loans. In addition, the Credit Facility provides that, upon receiving an investment grade rating on its non-credit enhanced, senior unsecured long term debt of BBB- or better from Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or Baa3 or better from Moody’s Investors Service, Inc. (an “Investment Grade Rating Event”), we may elect to convert to a credit rating based pricing grid. In addition to paying interest on outstanding principal under the Credit Facility, we are required to pay a facility fee to the lenders under the Revolving Facility in respect of the unused commitments thereunder. The facility fee rate is based on the daily unused amount of the Revolving Facility and is either 0.35% or 0.20% per annum based on the unused facility amount. Upon converting to a credit rating pricing based grid, the unused facility fee will no longer apply and we will be required to pay a facility fee ranging from 0.125% to 0.300% . We are also required to pay customary letter of credit fees. Prepayments and Amortization No principal reductions are required under the Credit Facility. We are permitted to voluntarily repay amounts outstanding under the Term Loan Facility at any time without premium or penalty, subject to certain minimum amounts and the payment of customary “breakage” costs with respect to LIBOR loans. Once repaid, no further borrowings will be permitted under the Term Loan Facility. Loan Covenants The Credit Facility contains certain customary affirmative and negative covenants and events of default. Such covenants will, among other things, restrict, subject to certain exceptions, our ability and that of the Subsidiary Guarantors (as defined below) and their respective subsidiaries to (i) engage in certain mergers, consolidations or liquidations, (ii) sell, lease or transfer all or substantially all of their respective assets, (iii) engage in certain transactions with affiliates, (iv) make changes to our fiscal year, (v) make changes in the nature of our business and our subsidiaries, and (vi) incur additional indebtedness that is secured on a pari passu basis with the Credit Facility. The Credit Facility also requires us, on a consolidated basis with our subsidiaries, to maintain a (i) maximum total leverage ratio, (ii) maximum secured leverage ratio, (iii) maximum unencumbered leverage ratio, (iv) minimum fixed charge coverage ratio, (v) minimum unencumbered fixed charge coverage ratio, and (vi) minimum tangible net worth. If an event of default occurs, the lenders under the Credit Facility are entitled to take various actions, including the acceleration of amounts due under the Credit Facility and all actions permitted to be taken by a secured creditor. As of June 30, 2019 , and through the date our condensed consolidated financial statements were issued, we believe we were in compliance with all affirmative and negative covenants. Guarantees and Security The obligations under the Credit Facility are guaranteed on a joint and several basis by each of our direct and indirect domestic wholly owned subsidiaries that own, directly or indirectly, unencumbered assets (the “Subsidiary Guarantors”), subject to certain exceptions. The guarantee provided by any Subsidiary Guarantor will be automatically released upon the occurrence of certain events, including if it no longer has a direct or indirect interest in an unencumbered asset or as a result of certain non-recourse refinancing transactions pursuant to which such Subsidiary Guarantor becomes contractually prohibited from providing its guaranty of the Credit Facility. In addition, INVH may be required to provide a guarantee of the Credit Facility under certain circumstances, including if INVH does not maintain its qualification as a REIT. The Credit Facility is collateralized by first priority or equivalent security interests in all the capital stock of, or other equity interests in, any Subsidiary Guarantor held by us and each of the Subsidiary Guarantors. The security interests granted under the Credit Facility will be automatically released upon the occurrence of certain events, including upon an Investment Grade Rating Event or if the total net leverage ratio is less than or equal to 8.00 : 1.00 for four consecutive fiscal quarters. Convertible Senior Notes In connection with the Mergers, we assumed SWH’s convertible senior notes. In July 2014, SWH issued $230,000 in aggregate principal amount of 3.00% convertible senior notes due 2019 (the “2019 Convertible Notes”). Interest on the 2019 Convertible Notes was payable semiannually in arrears on January 1st and July 1st of each year. On December 28, 2018, we notified note holders of our intent to settle conversions of the 2019 Convertible Notes in shares of common stock. The notes matured o n July 1, 2019 , and we settled substantially all of the outstanding balance of the 2019 Convertible Notes through the issuance of 12,553,864 shares of our common stock (see Note 15). In January 2017, SWH issued $345,000 in aggregate principal amount of 3.50% convertible senior notes due 2022 (the “2022 Convertible Notes” and together with the 2019 Convertible Notes, the “Convertible Senior Notes”). Interest on the 2022 Convertible Notes is payable semiannually in arrears on January 15th and July 15th of each year. The 2022 Convertible Notes will mature on January 15, 2022. The following table summarizes the terms of the Convertible Senior Notes outstanding as of June 30, 2019 and December 31, 2018 : Principal Amount Coupon Effective (1) Conversion (2) Maturity Remaining Amortization June 30, December 31, 2018 2019 Convertible Notes 3.00% 4.92% 54.5954 July 1, 2019 N/A $ 229,989 $ 229,993 2022 Convertible Notes 3.50% 5.12% 43.7694 January 15, 2022 2.55 years 345,000 345,000 Total 574,989 574,993 Net unamortized fair value adjustment (13,159 ) (17,692 ) Total $ 561,830 $ 557,301 (1) Effective rate includes the effect of the adjustment to the fair value of the debt as of the Merger Date, the value of which reduced the initial liability recorded to $223,185 and $324,252 for each of the 2019 Convertible Notes and 2022 Convertible Notes, respectively. (2) The conversion rate as of June 30, 2019 represents the number of shares of common stock issuable per $1,000 principal amount (actual $) of Convertible Senior Notes converted on such date , as adjusted in accordance with the applicable indentures as a result of cash dividend payments and the effects of the Mergers. Substantially all of the principal amount of the 2019 Convertible Notes was settled on July 1, 2019 , through the issuance of 12,553,864 shares of our common stock (see Note 15) . As of June 30, 2019 , the 2022 Convertible Notes do not meet the criteria for conversion. We have the option to settle the 2022 Convertible Notes in cash, common stock, or a combination thereof . Terms of Conversion At the settlement date, the conversion rate applicable to the 2019 Convertible Notes was 54.5954 shares of our common stock per $1,000 principal amount (actual $) of the 2019 Convertible Notes (equivalent to a conversion price of approximately $18.32 per common share — actual $). As of June 30, 2019 , the “if-converted” value of the 2019 Convertible Notes exceeded their principal amount by $105,576 as the closing market price of our common stock of $26.73 per common share (actual $) exceeded the implicit conversion price. On July 1, 2019 , we settled substantially all of the outstanding balance of the 2019 Convertible Notes with the issuance of 12,553,864 shares of our common stock. For the three months ended June 30, 2019 and 2018 , interest expense for the 2019 Convertible Notes, including non-cash amortization of discounts, was $2,783 and $2,751 , respectively. For the six months ended June 30, 2019 and 2018 , interest expense for the 2019 Convertible Notes, including non-cash amortization of discounts, was $5,586 and $5,503 , respectively. As of June 30, 2019 , the conversion rate applicable to the 2022 Convertible Notes is 43.7694 shares of our common stock per $1,000 principal amount (actual $) of the 2022 Convertible Notes (equivalent to a conversion price of approximately $22.85 per common share — actual $). The conversion rate for the 2022 Convertible Notes is subject to adjustment in some events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain events that occur prior to the maturity date, we will adjust the conversion rate for a holder who elects to convert its 2022 Convertible Notes in connection with such an event in certain circumstances. At any time prior to July 15, 2021, holders may convert the 2022 Convertible Notes at their option only under specific circumstances as defined in the indenture agreement, dated as of January 10, 2017, between us and our trustee, Wilmington Trust National Association (“the Convertible Notes Trustee”). On or after July 15, 2021 and until maturity, holders may convert all or any portion of the 2022 Convertible Notes at any time. Upon conversion, we will pay or deliver, as the case may be, cash, common stock, or a combination of cash and common stock, at our election. The “if-converted” value of the 2022 Convertible Notes exceeds their principal amount by $58,635 as of June 30, 2019 as the closing market price of our common stock of $26.73 per common share (actual $) exceeds the implicit conversion price. For the three months ended June 30, 2019 and 2018 , interest expense for the 2022 Convertible Notes, including non-cash amortization of discounts, was $4,217 and $4,158 , respectively. For the six months ended June 30, 2019 and 2018 , interest expense for the 2022 Convertible Notes, including non-cash amortization of discounts, was $8,434 and $8,316 , respectively. General Terms We may not redeem the Convertible Senior Notes prior to their maturity dates except to the extent necessary to preserve our status as a REIT for United States federal income tax purposes, as further described in the indentures. If we undergo a fundamental change as defined in the indentures, holders may require us to repurchase for cash all or any portion of their Convertible Senior Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Senior Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The indentures contain customary terms and covenants and events of default. If an event of default occurs and is continuing, the Convertible Notes Trustee, by notice to us, or the holders of at least 25% in aggregate principal amount of the outstanding Convertible Senior Notes, by notice to us and the Convertible Notes Trustee, may, and the Convertible Notes Trustee at the request of such holders shall, declare 100% of the principal of and accrued and unpaid interest on all the Convertible Senior Notes to be due and payable. In the case of an event of default arising out of certain events of bankruptcy, insolvency or reorganization in respect to us (as set forth in the indentures), 100% of the principal of and accrued and unpaid interest on the Convertible Senior Notes will automatically become due and payable. Debt Maturities Schedule The following table summarizes the contractual maturities of our debt as of June 30, 2019 : Year Mortgage Loans (1) Secured Term Loan Term Loan Facility Revolving Facility Convertible Senior Notes Total Remainder of 2019 $ 1,493,058 $ — $ — $ — $ 229,989 $ 1,723,047 2020 3,114,333 — — — — 3,114,333 2021 951,092 — — — — 951,092 2022 — — 1,500,000 — 345,000 1,845,000 2023 — — — — — — Thereafter 995,790 403,464 — — — 1,399,254 Total 6,554,273 403,464 1,500,000 — 574,989 9,032,726 Less: deferred financing costs, net (44,311 ) (2,595 ) (7,696 ) — — (54,602 ) Less: unamortized fair value adjustment — — — — (13,159 ) (13,159 ) Total $ 6,509,962 $ 400,869 $ 1,492,304 $ — $ 561,830 $ 8,964,965 (1) |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 7—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 for which we have elected to designate them as hedges. Non-designated hedges are derivatives that do not meet the criteria for hedge accounting or which we did not elect to designate as accounting 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. Currently, all swaps are designated for hedge accounting purposes and 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. Prior to January 31, 2017, all swaps were accounted for as non-designated hedges as the criteria for designation had not been met at that time. In addition, in connection with the Mergers, we acquired various interest rate swap instruments, which we designated for hedge accounting purposes. On the Merger Date, we recorded these interest rate swaps at their aggregate estimated fair value of $21,135 . Over the terms of each of these swaps, an amount equal to the Merger Date fair value will be amortized and reclassified into earnings. The table below summarizes our interest rate swap instruments as of June 30, 2019 : Agreement Date Forward Maturity Strike Index Notional December 21, 2016 February 28, 2017 January 31, 2022 1.97% One month LIBOR $ 750,000 December 21, 2016 February 28, 2017 January 31, 2022 1.97% One month LIBOR 750,000 January 12, 2017 February 28, 2017 August 7, 2020 1.59% One month LIBOR 1,100,000 January 13, 2017 February 28, 2017 June 9, 2020 1.63% One month LIBOR 595,000 January 20, 2017 February 28, 2017 March 9, 2020 1.60% One month LIBOR 325,000 June 3, 2016 July 15, 2018 July 15, 2019 1.12% One month LIBOR 450,000 January 10, 2017 January 15, 2019 January 15, 2020 1.93% One month LIBOR 550,000 April 19, 2018 January 31, 2019 January 31, 2025 2.86% One month LIBOR 400,000 February 15, 2019 (1) March 15, 2019 March 15, 2022 2.23% One month LIBOR 800,000 April 19, 2018 March 15, 2019 November 30, 2024 2.85% One month LIBOR 400,000 April 19, 2018 March 15, 2019 February 28, 2025 2.86% One month LIBOR 400,000 June 3, 2016 July 15, 2019 July 15, 2020 1.30% One month LIBOR 450,000 January 10, 2017 January 15, 2020 January 15, 2021 2.13% One month LIBOR 550,000 April 19, 2018 January 31, 2020 November 30, 2024 2.90% One month LIBOR 400,000 May 8, 2018 March 9, 2020 June 9, 2025 2.99% One month LIBOR 325,000 May 8, 2018 June 9, 2020 June 9, 2025 2.99% One month LIBOR 595,000 June 3, 2016 July 15, 2020 July 15, 2021 1.47% One month LIBOR 450,000 June 28, 2018 August 7, 2020 July 9, 2025 2.90% One month LIBOR 1,100,000 January 10, 2017 January 15, 2021 July 15, 2021 2.23% One month LIBOR 550,000 November 7, 2018 March 15, 2022 July 31, 2025 3.14% One month LIBOR 400,000 November 7, 2018 March 15, 2022 July 31, 2025 3.16% One month LIBOR 400,000 (1) On February 15, 2019, we terminated an interest rate swap instrument and simultaneously entered into a new interest rate swap instrument with identical economic terms, except that the strike rate increased 2 bps , from 2.21% to 2.23% , and collateral posting requirements were removed. During the three and six months ended June 30, 2019 and 2018 , such derivatives 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 $13,131 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 the 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 one or more of the mortgage loans is extended through an exercise of one or more extension options, replacement or extension interest rate cap agreements must be executed with terms similar to those associated with the initial interest rate cap agreements and strike prices equal to the greater of the 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 agreements, including all of our rights to payments owed by the counterparties and all other rights, have been pledged as additional collateral for the mortgage loans. Additionally, in certain instances, in order to minimize the cash impact of purchasing required interest rate caps, we simultaneously sold interest rate caps (which have identical terms and notional amounts) such that the purchase price and sale proceeds of the related interest rate caps are intended to offset each other. The purchased and sold interest rates caps have strike prices ranging from approximately 3.24% to 5.12% . 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 June 30, 2019 and December 31, 2018 : Asset Derivatives Liability Derivatives Fair Value as of Fair Value as of Balance June 30, December 31, 2018 Balance June 30, December 31, 2018 Derivatives designated as Interest rate swaps Other $ 7,833 $ 74,929 Other $ 280,788 $ 90,527 Derivatives not designated as Interest rate caps Other 8 476 Other 7 440 Total $ 7,841 $ 75,405 $ 280,795 $ 90,967 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 June 30, 2019 and December 31, 2018 : June 30, 2019 Gross Amounts Not Offset in the Condensed Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Condensed Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Condensed Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 7,841 $ — $ 7,841 $ (2,841 ) $ — $ 5,000 Offsetting liabilities: Derivatives $ 280,795 $ — $ 280,795 $ (2,841 ) $ — $ 277,954 December 31, 2018 Gross Amounts Not Offset in the Condensed Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Condensed Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Condensed Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 75,405 $ — $ 75,405 $ (30,374 ) $ — $ 45,031 Offsetting liabilities: Derivatives $ 90,967 $ — $ 90,967 $ (30,374 ) $ — $ 60,593 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 June 30, 2019 and 2018 : Amount of Gain (Loss) Recognized in OCI on Derivative Location of Gain Reclassified from Accumulated OCI into Net Income (Loss) Amount of Gain Reclassified from Accumulated OCI into Net Income (Loss) Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2019 2018 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Interest rate swaps $ (148,599 ) $ 15,826 Interest expense $ 7,891 $ 3,596 $ 95,706 $ 97,226 Location of Amount of Loss Recognized in Net Income (Loss) on Derivative For the Three Months Ended June 30, 2019 2018 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 1 $ (598 ) 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 six months ended June 30, 2019 and 2018 : Amount of Gain (Loss) Recognized in OCI on Derivative Location of Gain Reclassified from Accumulated OCI into Net Income (Loss) Amount of Gain Reclassified from Accumulated OCI into Net Income (Loss) Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Six Months For the Six Months For the Six Months 2019 2018 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Interest rate swaps $ (236,467 ) $ 75,726 Interest expense $ 18,754 $ 3,325 $ 189,689 $ 189,525 Location of Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivative For the Six Months 2019 2018 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 34 $ (345 ) 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 June 30, 2019 , the fair value of certain derivatives in a net liability position was $277,954 . If we had breached any of these provisions at June 30, 2019 , we could have been required to settle the obligations under the agreements at their termination value, which includes accrued interest and excludes the nonperformance risk related to these agreements, of $293,771 . As of December 31, 2018 , we had not posted any collateral for our interest rate swap agreements as the conditions specified in the derivative agreements that require such funding did not exist. As of June 30, 2019 , none of our derivative agreements contain provisions that require us to post collateral deposits. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Note 8—Equity Stockholders’ Equity As of June 30, 2019 , we have issued 525,126,947 shares of common stock to the public, the pre-IPO owners, and in settlement of restricted stock units (“RSUs,” see Note 10). In addition, we issue OP Units from time to time which 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. During the six months ended June 30, 2019 , we issued 4,478,970 shares of common stock, comprised of 905,677 shares of common stock in net settlement of 1,263,448 fully vested RSUs and 3,573,293 shares of common stock in exchange for the redemption of the same number of OP Units. As of June 30, 2019 , 5,463,285 outstanding OP Units are redeemable. On July 1, 2019 , we issued 12,553,864 shares of common stock to settle the full outstanding principal amount of the 2019 Convertible Notes (see Note 15). 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, which 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, 2018 through June 30, 2019 : Record Date Amount per Share Pay Date Total Amount Declared Q2-2019 May 15, 2019 $ 0.13 May 31, 2019 $ 68,334 Q1-2019 February 13, 2019 0.13 February 28, 2019 67,965 Q4-2018 November 14, 2018 0.11 November 30, 2018 57,518 Q3-2018 August 16, 2018 0.11 August 31, 2018 57,563 Q2-2018 May 15, 2018 0.11 May 31, 2018 57,559 Q1-2018 February 13, 2018 0.11 February 28, 2018 57,432 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9—Related Party Transactions Management Services One of our consolidated subsidiaries, as the managing member of a joint venture with FNMA (see Note 5 ), earns a management fee based upon the venture’s gross receipts. For the three months ended June 30, 2019 and 2018 , we earned $713 and $692 , respectively, and for the six months ended June 30, 2019 and 2018 , we earned $1,449 and $1,399 , respectively, of management fees which are included in other, net in the accompanying condensed consolidated statements of operations. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 10—Share-Based Compensation Prior to completion of the IPO, our board of directors adopted, and our stockholders approved, the Invitation Homes Inc. 2017 Omnibus Incentive Plan (the “Omnibus Incentive Plan”) to provide a means through which to attract and retain key personnel and to provide a means whereby our directors, officers, employees, consultants, and advisors can acquire and maintain an equity interest in us, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock, and to align their interests with those of our stockholders. Under the Omnibus Incentive Plan, we may issue up to 16,000,000 shares. Our share-based awards consist of time-vesting RSUs, performance and market based vesting RSUs (“PRSUs”), and Outperformance Awards (defined below). Time-vesting RSUs are participating securities for earnings (loss) per common share (“EPS”) purposes and PRSUs and Outperformance Awards are not. For detailed discussion of RSUs and PRSUs issued prior to January 1, 2019, refer to our Annual Report on Form 10-K for the year ended December 31, 2018. Share-Based Awards The following summarizes our share-based award activity during the six months ended June 30, 2019 . Annual Long Term Incentive Plan (“LTIP”): • Annual LTIP Awards Granted: During the six months ended June 30, 2019 , we granted 529,901 RSUs pursuant to LTIP awards (together with previously granted annual LTIP awards, “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 s ubject to continued employment through the applicable vesting date . The time-vesting RSUs granted during the six months ended June 30, 2019 vest in three equal annual installments based on an anniversary date of March 1, 2019. The PRSUs granted during the six months ended June 30, 2019 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 six months ended June 30, 2019 , the Compensation Committee certified performance achievement with respect to Tranche 2 of our 2017 LTIP Awards. Certain PRSUs vested and achieved performance in excess of the target level, resulting in the issuance of an additional 23,392 shares of common stock. Such awards are reflected as an increase in the number of awards granted and vested in the table below. Certain other PRSUs did not achieve performance criteria, resulting in the cancellation of 52,896 awards. Such awards are reflected as an increase in the number of awards forfeited/canceled below. Director Awards During the six months ended June 30, 2019 , we granted 53,704 time-vesting RSUs to members of our board of directors, which awards will fully vest on the date scheduled for INVH’s 2020 annual stockholders meeting, subject to continued service on the board of directors through such date. Outperformance Awards On May 1, 2019, the Compensation Committee approved one-time equity based awards with market based vesting conditions in the form of PRSUs and OP Units (the “Outperformance Awards”). The Outperformance Awards may be earned based on the achievement of rigorous absolute total shareholder return and relative total shareholder return thresholds over a three year performance period ending on March 31, 2022. Upon completion of the performance period, the dollar value of the awards earned under the absolute and relative total shareholder return components will be separately calculated, and the number of earned 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 March 31, 2022 and 25% on each of the first and second anniversaries of such date, subject to continued employment. The aggregate $11,800 grant-date fair value of the Outperformance Awards was determined based on Monte-Carlo option pricing models which estimate the probability of the vesting conditions being satisfied. 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 six months ended June 30, 2019 : Time-Vesting Awards PRSUs Total Share-Based Awards (1) Number Weighted Number Weighted Average Grant Date Fair Value (Actual $) Number Weighted Balance, December 31, 2018 1,595,644 $ 21.63 888,733 $ 22.09 2,484,377 $ 21.79 Granted 239,412 23.38 367,585 24.26 606,997 23.91 Vested (2) (1,069,264 ) (21.46 ) (83,938 ) (21.21 ) (1,153,202 ) (21.44 ) Forfeited / canceled (66,417 ) (21.95 ) (231,574 ) (21.60 ) (297,991 ) (21.68 ) Balance, June 30, 2019 699,375 $ 22.46 940,806 $ 23.14 1,640,181 $ 22.85 (1) Total share-based awards excludes Outperformance Awards. (2) All vested share-based awards are included in basic EPS for the periods after each awards vest date. During the six months ended June 30, 2019 , 1,069,264 time-vesting RSUs and 83,938 PRSUs with an estimated fair value of $30,107 fully vested. During the six months ended June 30, 2019 , vested awards include the acceleration of 296,291 RSUs 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 LTIP PRSUs and Outperformance 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 awards with market based vesting conditions granted during the six months ended June 30, 2019 : For the Six Months Ended June 30, 2019 Expected volatility (1) 17.2% - 17.4% Risk-free rate 2.25% - 2.42% Expected holding period 2.84 - 2.92 years (1) Expected volatility was estimated based on the historical volatility of INVH’s realized returns and the applicable index. Summary of Total Share-Based Compensation Expense During the three and six months ended June 30, 2019 and 2018 , we recognized share-based compensation expense as follows: For the Three Months Ended June 30, For the Six Months 2019 2018 2019 2018 General and administrative $ 2,795 $ 6,774 $ 7,715 $ 14,328 Property management expense 820 1,242 1,507 3,186 Total $ 3,615 $ 8,016 $ 9,222 $ 17,514 As of June 30, 2019 , there is $30,300 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 2.48 years. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11—Fair Value Measurements The carrying amounts of restricted cash, certain components of other assets, accounts payable and accrued expenses, resident security deposits, and certain components of other liabilities approximate fair value due to the short maturity of these amounts. Our interest rate swap agreements and interest rate cap agreements are the only financial instruments recorded at fair value on a recurring basis within our condensed consolidated financial statements. The fair values of our interest rate caps and swaps, which are classified as Level 2 in the fair value hierarchy, are estimated using market values of instruments with similar attributes and maturities. See Note 7 for the details of the condensed balance sheet classification and the fair values for the interest rate caps and swaps. The following table displays the carrying values and fair values of financial instruments as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Assets carried at historical cost on the condensed consolidated balance sheets: Investments in debt securities (1) Level 2 $ 331,088 $ 332,229 $ 366,599 $ 365,196 Liabilities carried at historical cost on the condensed consolidated balance sheets: Mortgage loans (2) Level 2 $ 6,554,273 $ 6,576,873 $ 7,263,476 $ 7,235,685 Secured Term Loan (3) Level 3 403,464 407,300 — — Term Loan Facility (4) Level 3 1,500,000 1,501,037 1,500,000 1,500,773 Convertible Senior Notes (5) Level 3 561,830 558,344 557,301 544,249 (1) The carrying values of investments in debt securities are shown net of discount. (2) The carrying values of the mortgage loans are shown net of discount and exclude $44,311 and $61,822 of deferred financing costs as of June 30, 2019 and December 31, 2018 , respectively. (3) The carrying value of the Secured Term Loan excludes $2,595 of deferred financing costs as of June 30, 2019 . (4) The carrying value of the Term Loan Facility excludes $7,696 and $9,140 of deferred financing costs as of June 30, 2019 and December 31, 2018 , respectively. (5) The carrying values of the Convertible Senior Notes include unamortized discounts of $13,159 and $17,692 as of June 30, 2019 and December 31, 2018 , respectively. The fair values of our investment in debt securities 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 the end of the period. The fair values of our Secured Term Loan, Term Loan Facility, and Revolving Facility, which are classified as Level 3 in the fair value hierarchy, are estimated using a discounted cash flow methodology based on market interest rate data and other market factors available at the end of the period. The fair value of the 2022 Convertible Notes , which is classified as Level 3 in the fair value hierarchy, is estimated by discounting contractual cash flows at the interest rate we estimate the notes would bear if sold in the current market and excludes the value associated with the conversion feature. The fair value of the 2019 Convertible Notes is determined based on the outstanding principal balance immediately prior to the July 1, 2019 conversion (see Note 6 and Note 15). Our assets measured at fair value on a nonrecurring basis are those assets for which we have recorded impairments. The assets for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below: For the Three Months Ended June 30, For the Six Months Ended 2019 2018 2019 2018 Investments in single-family residential properties, net held for use (Level 3): Pre-impairment amount $ 7,313 $ 764 $ 7,553 $ 764 Total impairments (1,788 ) (176 ) (1,818 ) (176 ) Fair value $ 5,525 $ 588 $ 5,735 $ 588 For the Three Months Ended June 30, For the Six Months Ended 2019 2018 2019 2018 Investments in single-family residential properties, net held for sale (Level 3): Pre-impairment amount $ 12,090 $ 9,183 $ 31,114 $ 12,408 Total impairments (2,288 ) (1,495 ) (5,511 ) (2,098 ) Fair value $ 9,802 $ 7,688 $ 25,603 $ 10,310 For additional information related to our single-family residential properties as of June 30, 2019 and December 31, 2018 , refer to Note 3 . |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 12—Earnings per Share Basic and diluted EPS are calculated as follows: For the Three Months For the Six Months (in thousands, except share and per share data) 2019 2018 2019 2018 Numerator: Net income (loss) available to common stockholders — basic and diluted $ 38,833 $ (14,155 ) $ 59,549 $ (31,646 ) Denominator: Weighted average common shares outstanding — basic 525,070,036 520,509,058 523,265,455 520,087,371 Effect of dilutive securities: Incremental shares attributed to non-vested share-based awards 863,607 — 925,014 — Weighted average common shares outstanding — diluted 525,933,643 520,509,058 524,190,469 520,087,371 Net income (loss) per common share — basic $ 0.07 $ (0.03 ) $ 0.11 $ (0.06 ) Net income (loss) per common share — diluted $ 0.07 $ (0.03 ) $ 0.11 $ (0.06 ) Incremental shares attributed to non-vested share-based awards are excluded from the computation of diluted EPS when they are anti-dilutive. For the three months ended June 30, 2019 , there were no incremental shares attributed to non-vested share-based awards. For the six months ended June 30, 2019 , 9,495 incremental shares attributed to non-vested share-based awards are excluded from the denominator as their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2018 , 1,129,465 and 1,242,853 , respectively, incremental shares attributed to non-vested share-based awards are excluded from the computation of diluted EPS because we had a net loss for the periods. For the three and six months ended June 30, 2019 and 2018 , the vested OP Units have been excluded from the computation of EPS because all income (loss) attributable to the OP Units has been recorded as non-controlling interest and thus excluded from net income (loss) available to common stockholders. For the three and six months ended June 30, 2019 , 12,553,864 potential shares of common stock issuable upon the conversion of the 2019 Convertible Notes, calculated using the “if-converted” method, are excluded from the computation of diluted EPS as they would be anti-dilutive. For the three and six months ended June 30, 2019 , 15,100,443 potential shares of common stock issuable upon the conversion of the 2022 Convertible Notes are also excluded from the computation of diluted EPS. Additionally, no adjustment is included to the numerator for the interest expense related to the Convertible Senior Notes for the three and six months ended June 30, 2019 . For the three and six months ended June 30, 2018 , we asserted our intent and ability to fully settle the Convertible Senior Notes in cash and as a result, the Convertible Senior Notes did not impact diluted EPS during that period. See Note 6 for further discussion about the Convertible Senior Notes. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Note 13—Income Tax We account for income taxes under the asset and liability method. For our taxable REIT subsidiaries (“TRS”), 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 June 30, 2019 and December 31, 2018 , we have no t 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 Section 337(d) of the Internal Revenue Code of 1986, as amended, or were held by TRSs. These transactions resulted in $844 and $455 of current income tax expense for the three months ended June 30, 2019 and 2018 , respectively, and $1,605 and $849 of current income tax expense for the six months ended June 30, 2019 and 2018 , respectively, which has been recorded in gain on sale of property, net of tax in the condensed consolidated statements of operations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14—Commitments and Contingencies Leasing Commitments The following table sets forth our fixed lease payment commitments as a lessee as of June 30, 2019 , for the periods below: Operating Leases Finance Leases Remainder of 2019 $ 2,238 $ 316 2020 4,552 621 2021 4,169 543 2022 2,713 41 2023 1,565 — Thereafter 1,835 — Total lease payments 17,072 1,521 Less: imputed interest (1,417 ) (59 ) Total lease liability $ 15,655 $ 1,462 As of June 30, 2019 , approximately $9,600 of finance leases for fleet vehicles with a lease term of 50 months have been entered into and are anticipated to commence during the next nine months. The components of lease expense for the three and six months ended June 30, 2019 are as follows: For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Operating lease cost: Fixed lease cost $ 916 $ 1,897 Variable lease cost 356 699 Total operating lease cost $ 1,272 $ 2,596 Future minimum rental revenues under leases existing on our single-family residential properties as of June 30, 2019 are as follows: Lease Payments to be Received Remainder of 2019 $ 645,097 2020 417,831 2021 42,085 2022 — 2023 — Thereafter — Total $ 1,105,013 Insurance Policies Pursuant to the terms of our Credit Facility and the mortgage loan agreements (see Note 6 ), laws and regulations of the jurisdictions in which our properties are located, and general business practices, we are required to procure insurance on our properties. As of June 30, 2019 , 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. 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 | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15—Subsequent Events In connection with the preparation of the accompanying condensed consolidated financial statements, we have evaluated events and transactions occurring after June 30, 2019 , for potential recognition or disclosure. Settlement of the 2019 Convertible Notes On July 1, 2019 , we settled substantially all of the outstanding principal amount of the 2019 Convertible Notes through the issuance of 12,553,864 shares of common stock. Voluntary Mortgage Loan Prepayment On July 9, 2019 , we voluntarily prepaid $50,000 of outstanding borrowings with unrestricted cash on hand against the outstanding balance of IH 2017-2. The prepayment was applied to Component E of the loan with an interest rate of LIBOR plus a spread of 231 bps. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim 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 (“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, 2018 . 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 six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . We consolidate entities when we own, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. We consolidate variable interest entities (“VIEs”) in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation , if we are the primary beneficiary of the VIE as determined by our power to direct the VIE’s activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. As described in Note 5 , as a result of the Mergers we acquired an investment in a joint venture with the Federal National Mortgage Association (“FNMA”), which is a voting interest entity. We do not hold a controlling financial interest in the joint venture but have significant influence over its operating and financial policies. Additionally, FNMA holds certain substantive participating rights that preclude the presumption of control by us; as such, we account for our investment using the equity method. In connection with the Mergers, we initially recorded this investment at fair value in connection with purchase accounting and have 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 venture are reported as part of operating cash flows while distributions related to a capital transaction, such as a refinancing transaction or sale, are reported as investing activities. Non-controlling interests represent the OP Units held by a third party as a result of the Mergers and any vested OP 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 June 30, 2019 and December 31, 2018 , and the condensed consolidated statements of operations for the three and six months ended June 30, 2019 and 2018 include an allocation of the net income (loss) attributable to the non-controlling interest holders. Vested 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. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , (the “New Lease Standard”), which requires lessees to recognize assets and liabilities on the condensed balance sheets for the rights and obligations created by all leases with terms of more than one year. Lessor accounting remains similar to previous GAAP, while aligning with ASC 606, Revenue from Contracts with Customers (“ASC 606”). We adopted the New Lease Standard using the optional transition approach as of January 1, 2019. As such, previously reported financial information was not updated, and additional disclosures required under the New Lease Standard are not provided for periods prior to January 1, 2019. Additionally, we elected the practical expedient package related to lease identification, lease classification, and initial direct costs. As such, we have not reassessed our existing contracts and leases for these items. We did not elect the hindsight practical expedient, which permits entities to use hindsight in determining lease term and assessing impairment. As a lessor, our leases with residents are classified as operating leases under the New Lease Standard, and thus the pattern of recognition of rental revenue and other property income remains unchanged from previous lease accounting guidance as adjusted by ASC 606. Rental revenues and other property income are recorded net of any concessions and uncollectible amounts for all periods presented. As a lessee, adoption of the New Lease Standard resulted in the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases on our condensed consolidated balance sheet; however, our accounting for finance leases remains substantially unchanged. On January 1, 2019, we recorded the cumulative effect of adoption of the New Lease Standard on our condensed consolidated balance sheet which resulted in an increase in other assets and other liabilities of $14,118 and $14,118 , respectively. In August 2018, the SEC issued Securities Act Release No. 33-10532, Disclosure Update and Simplification , which amends certain of its disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. The Disclosure Update and Simplification requires us to disclose and analyze changes in stockholders’ equity for the current quarter and year to date interim periods as well as the comparative periods of the prior year. We have conformed the presentation of our condensed consolidated statements of equity with this requirement for all periods presented. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes how companies will measure credit losses for certain financial assets, excluding receivables arising from operating leases. This guidance requires an entity to estimate its expected credit loss and record an allowance based on this estimate so that it is presented at the net amount expected to be collected on the financial asset. The new standard will be effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period, with early adoption permitted beginning after December 15, 2018 and interim periods within that reporting period. We do not anticipate that the adoption of this standard will have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which changes the fair value disclosure requirements for certain financial instruments. This guidance reduces the need for certain disclosure language related to our financial instruments and adds additional support for unobservable inputs used in the calculation of fair values. This new standard will be effective for annual reporting periods beginning after December 15, 2019, and interim periods within that reporting period. We do not anticipate that the adoption of this standard will have a material impact on our condensed consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates. |
Lessor, Leases | Revenue Recognition and Resident Receivables Rental revenues and other property income, net of any concessions and uncollectible amounts, consists primarily of rents collected under lease agreements related to our single-family residential properties. We enter into leases directly with our residents, and our leases typically have a term of one to two years. We elected the practical expedient not to separate the lease and nonlease components of these operating leases with our residents. Our lease components consist primarily of rental income, pet rent, and smart home system fees. Nonlease components include resident reimbursements for utilities and various other fees, including late fees and lease termination fees, among others. The lease component is the predominant component in these arrangements, and as such, we recognize rental revenues and other property income in accordance with the New Lease Standard for the three and six months ended June 30, 2019 , and in accordance with previous GAAP for the three and six months ended June 30, 2018 . 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 the three and six months ended June 30, 2019 , rental revenues and other property income includes $23,253 and $44,583 , respectively, of variable lease payments. Sales taxes and other similar taxes assessed by governmental authorities that we collect from residents are excluded from our rental revenues and other property income. |
Lessee, Leases | Leases Entered Into as a Lessee We lease our corporate and regional offices, related office equipment, and a fleet of vehicles for use by our field associates. As of January 1, 2019, these leases are accounted for pursuant to the New Lease Standard (see Note 5 and Note 14). We account for leases for our corporate and regional offices as operating leases. In addition to monthly rent payments, we reimburse the lessors of our office spaces for our share of operating expenses as defined in the leases. Such amounts are not included in the measurement of the lease liability but are recognized as a variable lease expense when incurred. At this time, it is not reasonably certain that we will exercise any of the renewal or termination options on these leases, and the measurement of the ROU asset and lease liability is calculated accordingly. We have elected the practical expedient under which the lease components of our office and vehicle fleet leases are not separated from the nonlease components. We have elected the short-term lease recognition exemption for our office equipment leases and therefore do not record these leases on our condensed consolidated balance sheets. These office equipment leases are not material to our condensed consolidated financial statements. |
Investments in Single-Family _2
Investments in Single-Family Residential Properties (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of property carrying amount | The following table sets forth the net carrying amount associated with our properties by component: June 30, December 31, 2018 Land $ 4,522,979 $ 4,561,441 Single-family residential property 13,080,759 13,026,317 Capital improvements 521,531 525,670 Equipment 115,715 116,546 Total gross investments in the properties 18,240,984 18,229,974 Less: accumulated depreciation (1,777,457 ) (1,543,914 ) Investments in single-family residential properties, net $ 16,463,527 $ 16,686,060 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, December 31, 2019 2018 2018 2017 Cash and cash equivalents $ 77,046 $ 166,874 $ 144,940 $ 179,878 Restricted cash 242,409 243,048 215,051 236,684 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 319,455 $ 409,922 $ 359,991 $ 416,562 |
Schedule of restricted cash | The balances of our restricted cash accounts, as of June 30, 2019 and December 31, 2018 , are set forth in the table below. As of June 30, 2019 and December 31, 2018 , 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. June 30, December 31, 2018 Resident security deposits $ 151,473 $ 150,346 Property taxes 53,052 26,163 Collections 26,830 26,677 Capital expenditures 4,906 5,269 Letters of credit 3,452 3,444 Special and other reserves 2,696 3,152 Total $ 242,409 $ 215,051 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | As of June 30, 2019 and December 31, 2018 , the balances in other assets, net are as follows: June 30, December 31, 2018 Investments in debt securities, net $ 331,088 $ 366,599 Held for sale assets (1) 151,012 154,077 Investment in unconsolidated joint venture 56,026 56,622 Prepaid expenses 39,577 30,970 Rent and other receivables, net 29,457 33,117 ROU lease assets — operating and finance, net 15,980 N/A Corporate fixed assets, net 10,881 11,792 Derivative instruments (Note 7) 7,841 75,405 Deferred leasing costs, net 6,925 6,316 Amounts deposited and held by others 4,501 1,010 Deferred financing costs, net 3,949 5,134 Other 15,727 18,128 Total $ 672,964 $ 759,170 (1) As of June 30, 2019 and December 31, 2018 , 708 and 738 properties, respectively, are classified as held for sale. |
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 June 30, 2019 : June 30, 2019 Operating Leases Finance Leases Other assets $ 14,510 $ 1,470 Other liabilities 15,655 1,462 Weighted average remaining lease term 4 years 2 years Weighted average discount rate 4.0 % 4.0 % |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Instrument [Line Items] | |
Convertible Debt | The following table summarizes the terms of the Convertible Senior Notes outstanding as of June 30, 2019 and December 31, 2018 : Principal Amount Coupon Effective (1) Conversion (2) Maturity Remaining Amortization June 30, December 31, 2018 2019 Convertible Notes 3.00% 4.92% 54.5954 July 1, 2019 N/A $ 229,989 $ 229,993 2022 Convertible Notes 3.50% 5.12% 43.7694 January 15, 2022 2.55 years 345,000 345,000 Total 574,989 574,993 Net unamortized fair value adjustment (13,159 ) (17,692 ) Total $ 561,830 $ 557,301 (1) Effective rate includes the effect of the adjustment to the fair value of the debt as of the Merger Date, the value of which reduced the initial liability recorded to $223,185 and $324,252 for each of the 2019 Convertible Notes and 2022 Convertible Notes, respectively. (2) The conversion rate as of June 30, 2019 represents the number of shares of common stock issuable per $1,000 principal amount (actual $) of Convertible Senior Notes converted on such date , as adjusted in accordance with the applicable indentures as a result of cash dividend payments and the effects of the Mergers. Substantially all of the principal amount of the 2019 Convertible Notes was settled on July 1, 2019 , through the issuance of 12,553,864 shares of our common stock (see Note 15) . As of June 30, 2019 , the 2022 Convertible Notes do not meet the criteria for conversion. We have the option to settle the 2022 Convertible Notes in cash, common stock, or a combination thereof . |
Schedule of line of credit facility | The following table sets forth a summary of the outstanding principal amounts under the Credit Facility as of June 30, 2019 and December 31, 2018 : Maturity Interest (1) June 30, December 31, 2018 Term Loan Facility February 6, 2022 4.10% $ 1,500,000 $ 1,500,000 Deferred financing costs, net (7,696 ) (9,140 ) Term Loan Facility, net $ 1,492,304 $ 1,490,860 Revolving Facility February 6, 2021 4.15% $ — $ — (1) Interest rates for the Term Loan Facility and the Revolving Facility are based on LIBOR plus an applicable margin. As of June 30, 2019 , the applicable margins were 1.70% and 1.75% , respectively, and LIBOR was 2.40% . |
Schedule of maturities of long-term debt | The following table summarizes the contractual maturities of our debt as of June 30, 2019 : Year Mortgage Loans (1) Secured Term Loan Term Loan Facility Revolving Facility Convertible Senior Notes Total Remainder of 2019 $ 1,493,058 $ — $ — $ — $ 229,989 $ 1,723,047 2020 3,114,333 — — — — 3,114,333 2021 951,092 — — — — 951,092 2022 — — 1,500,000 — 345,000 1,845,000 2023 — — — — — — Thereafter 995,790 403,464 — — — 1,399,254 Total 6,554,273 403,464 1,500,000 — 574,989 9,032,726 Less: deferred financing costs, net (44,311 ) (2,595 ) (7,696 ) — — (54,602 ) Less: unamortized fair value adjustment — — — — (13,159 ) (13,159 ) Total $ 6,509,962 $ 400,869 $ 1,492,304 $ — $ 561,830 $ 8,964,965 (1) |
Notes Payable, Other Payables [Member] | |
Debt Instrument [Line Items] | |
Schedule of long-term debt instruments | The following table sets forth a summary of our Secured Term Loan indebtedness as of June 30, 2019 and December 31, 2018 : Maturity Date Interest (1) June 30, December 31, 2018 Secured Term Loan June 9, 2031 3.59% $ 403,464 $ — Deferred financing costs, net (2,595 ) — Secured Term Loan, net $ 400,869 $ — (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 bears interest at a floating rate based on a spread of 147 bps, including applicable servicing fees, over one month LIBOR (subject to certain adjustments as outlined in the loan agreement) for the twelfth year . Interest payments are made monthly. |
Secured Debt | |
Debt Instrument [Line Items] | |
Schedule of long-term debt instruments | The following table sets forth a summary of our mortgage loan indebtedness as of June 30, 2019 and December 31, 2018 : Outstanding Principal Balance (4) Origination Date Maturity Date (1) Interest (2) Range of Spreads (3) June 30, December 31, 2018 CSH 2016-2 N/A June 7, 2019 —% N/A $ — $ 442,614 IH 2017-1 (5) April 28, 2017 June 9, 2027 4.23% N/A 995,790 995,826 SWH 2017-1 (6) September 29, 2017 October 9, 2019 3.95% 102-347 bps 758,893 764,685 IH 2017-2 (6)(7) November 9, 2017 December 9, 2019 3.70% 91-231 bps 734,165 856,238 IH 2018-1 (6) February 8, 2018 March 9, 2020 3.51% 76-206 bps 809,506 911,827 IH 2018-2 (6) May 8, 2018 June 9, 2020 3.80% 95-230 bps 1,020,651 1,035,749 IH 2018-3 (6) June 28, 2018 July 9, 2020 3.82% 105-230 bps 1,284,176 1,296,959 IH 2018-4 (6) November 7, 2018 January 9, 2021 3.81% 115-225 bps 951,092 959,578 Total Securitizations 6,554,273 7,263,476 Less: deferred financing costs, net (44,311 ) (61,822 ) Total $ 6,509,962 $ 7,201,654 (1) Maturity date represents repayment date for mortgage loans which have been repaid in full prior to June 30, 2019 . For all other mortgage loans, the maturity dates above reflect all extensions that have been exercised. (2) Except for IH 2017-1, interest rates are based on a weighted average spread over the London Interbank Offered Rate (“LIBOR”) , plus applicable servicing fees; as of June 30, 2019 , LIBOR was 2.40% . Our IH 2017-1 mortgage loan 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. (3) Range of spreads is based on outstanding principal balances as of June 30, 2019 . (4) Outstanding principal balance is net of discounts and does not include deferred financing costs, net. (5) Net of unamortized discount of $2,817 and $2,993 as of June 30, 2019 and December 31, 2018 , respectively. (6) The initial maturity term of each of these mortgage loans is two years , individually subject to three 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 a replacement interest rate cap agreement from an approved counterparty within the required timeframe to the lender ). The maturity dates above reflect all extensions that have been exercised. (7) On July 9, 2019 , we voluntarily prepaid $50,000 of outstanding borrowings with unrestricted cash on hand against the outstanding balance of IH 2017-2 (see Note 15 ). |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of interest rate swap instruments | The table below summarizes our interest rate swap instruments as of June 30, 2019 : Agreement Date Forward Maturity Strike Index Notional December 21, 2016 February 28, 2017 January 31, 2022 1.97% One month LIBOR $ 750,000 December 21, 2016 February 28, 2017 January 31, 2022 1.97% One month LIBOR 750,000 January 12, 2017 February 28, 2017 August 7, 2020 1.59% One month LIBOR 1,100,000 January 13, 2017 February 28, 2017 June 9, 2020 1.63% One month LIBOR 595,000 January 20, 2017 February 28, 2017 March 9, 2020 1.60% One month LIBOR 325,000 June 3, 2016 July 15, 2018 July 15, 2019 1.12% One month LIBOR 450,000 January 10, 2017 January 15, 2019 January 15, 2020 1.93% One month LIBOR 550,000 April 19, 2018 January 31, 2019 January 31, 2025 2.86% One month LIBOR 400,000 February 15, 2019 (1) March 15, 2019 March 15, 2022 2.23% One month LIBOR 800,000 April 19, 2018 March 15, 2019 November 30, 2024 2.85% One month LIBOR 400,000 April 19, 2018 March 15, 2019 February 28, 2025 2.86% One month LIBOR 400,000 June 3, 2016 July 15, 2019 July 15, 2020 1.30% One month LIBOR 450,000 January 10, 2017 January 15, 2020 January 15, 2021 2.13% One month LIBOR 550,000 April 19, 2018 January 31, 2020 November 30, 2024 2.90% One month LIBOR 400,000 May 8, 2018 March 9, 2020 June 9, 2025 2.99% One month LIBOR 325,000 May 8, 2018 June 9, 2020 June 9, 2025 2.99% One month LIBOR 595,000 June 3, 2016 July 15, 2020 July 15, 2021 1.47% One month LIBOR 450,000 June 28, 2018 August 7, 2020 July 9, 2025 2.90% One month LIBOR 1,100,000 January 10, 2017 January 15, 2021 July 15, 2021 2.23% One month LIBOR 550,000 November 7, 2018 March 15, 2022 July 31, 2025 3.14% One month LIBOR 400,000 November 7, 2018 March 15, 2022 July 31, 2025 3.16% One month LIBOR 400,000 (1) On February 15, 2019, we terminated an interest rate swap instrument and simultaneously entered into a new interest rate swap instrument with identical economic terms, except that the strike rate increased 2 bps , from 2.21% to 2.23% , and collateral posting requirements were removed. |
Summary of derivative financial instruments, fair value and location in condensed consolidated balance sheets | The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 : Asset Derivatives Liability Derivatives Fair Value as of Fair Value as of Balance June 30, December 31, 2018 Balance June 30, December 31, 2018 Derivatives designated as Interest rate swaps Other $ 7,833 $ 74,929 Other $ 280,788 $ 90,527 Derivatives not designated as Interest rate caps Other 8 476 Other 7 440 Total $ 7,841 $ 75,405 $ 280,795 $ 90,967 |
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 June 30, 2019 and December 31, 2018 : June 30, 2019 Gross Amounts Not Offset in the Condensed Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Condensed Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Condensed Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 7,841 $ — $ 7,841 $ (2,841 ) $ — $ 5,000 Offsetting liabilities: Derivatives $ 280,795 $ — $ 280,795 $ (2,841 ) $ — $ 277,954 December 31, 2018 Gross Amounts Not Offset in the Condensed Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Condensed Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Condensed Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 75,405 $ — $ 75,405 $ (30,374 ) $ — $ 45,031 Offsetting liabilities: Derivatives $ 90,967 $ — $ 90,967 $ (30,374 ) $ — $ 60,593 |
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 June 30, 2019 and December 31, 2018 : June 30, 2019 Gross Amounts Not Offset in the Condensed Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Condensed Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Condensed Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 7,841 $ — $ 7,841 $ (2,841 ) $ — $ 5,000 Offsetting liabilities: Derivatives $ 280,795 $ — $ 280,795 $ (2,841 ) $ — $ 277,954 December 31, 2018 Gross Amounts Not Offset in the Condensed Statement of Financial Position Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Condensed Statement of Financial Position Net Amounts of Assets/ Liabilities Presented in the Condensed Statement of Financial Position Financial Instruments Cash Collateral Received Net Offsetting assets: Derivatives $ 75,405 $ — $ 75,405 $ (30,374 ) $ — $ 45,031 Offsetting liabilities: Derivatives $ 90,967 $ — $ 90,967 $ (30,374 ) $ — $ 60,593 |
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 June 30, 2019 and 2018 : Amount of Gain (Loss) Recognized in OCI on Derivative Location of Gain Reclassified from Accumulated OCI into Net Income (Loss) Amount of Gain Reclassified from Accumulated OCI into Net Income (Loss) Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2019 2018 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Interest rate swaps $ (148,599 ) $ 15,826 Interest expense $ 7,891 $ 3,596 $ 95,706 $ 97,226 Location of Amount of Loss Recognized in Net Income (Loss) on Derivative For the Three Months Ended June 30, 2019 2018 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 1 $ (598 ) 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 six months ended June 30, 2019 and 2018 : Amount of Gain (Loss) Recognized in OCI on Derivative Location of Gain Reclassified from Accumulated OCI into Net Income (Loss) Amount of Gain Reclassified from Accumulated OCI into Net Income (Loss) Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations For the Six Months For the Six Months For the Six Months 2019 2018 2019 2018 2019 2018 Derivatives in cash flow hedging relationships: Interest rate swaps $ (236,467 ) $ 75,726 Interest expense $ 18,754 $ 3,325 $ 189,689 $ 189,525 Location of Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivative For the Six Months 2019 2018 Derivatives not designated as hedging instruments: Interest rate caps Interest expense $ 34 $ (345 ) |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Summary of dividends declared | The following table summarizes our dividends declared from January 1, 2018 through June 30, 2019 : Record Date Amount per Share Pay Date Total Amount Declared Q2-2019 May 15, 2019 $ 0.13 May 31, 2019 $ 68,334 Q1-2019 February 13, 2019 0.13 February 28, 2019 67,965 Q4-2018 November 14, 2018 0.11 November 30, 2018 57,518 Q3-2018 August 16, 2018 0.11 August 31, 2018 57,563 Q2-2018 May 15, 2018 0.11 May 31, 2018 57,559 Q1-2018 February 13, 2018 0.11 February 28, 2018 57,432 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation, restricted stock and restricted stock units | The following table summarizes activity related to non-vested time-vesting RSUs and PRSUs, other than Outperformance Awards, during the six months ended June 30, 2019 : Time-Vesting Awards PRSUs Total Share-Based Awards (1) Number Weighted Number Weighted Average Grant Date Fair Value (Actual $) Number Weighted Balance, December 31, 2018 1,595,644 $ 21.63 888,733 $ 22.09 2,484,377 $ 21.79 Granted 239,412 23.38 367,585 24.26 606,997 23.91 Vested (2) (1,069,264 ) (21.46 ) (83,938 ) (21.21 ) (1,153,202 ) (21.44 ) Forfeited / canceled (66,417 ) (21.95 ) (231,574 ) (21.60 ) (297,991 ) (21.68 ) Balance, June 30, 2019 699,375 $ 22.46 940,806 $ 23.14 1,640,181 $ 22.85 (1) Total share-based awards excludes Outperformance Awards. (2) All vested share-based awards are included in basic EPS for the periods after each awards vest date. During the six months ended June 30, 2019 , 1,069,264 time-vesting RSUs and 83,938 PRSUs with an estimated fair value of $30,107 fully vested. During the six months ended June 30, 2019 , vested awards include the acceleration of 296,291 RSUs pursuant to the terms and conditions of the Omnibus Incentive Plan and related award agreements. |
Schedule of share-based payment awards, stock options, valuation assumption | The following table summarizes the significant inputs utilized in these models for awards with market based vesting conditions granted during the six months ended June 30, 2019 : For the Six Months Ended June 30, 2019 Expected volatility (1) 17.2% - 17.4% Risk-free rate 2.25% - 2.42% Expected holding period 2.84 - 2.92 years (1) Expected volatility was estimated based on the historical volatility of INVH’s realized returns and the applicable index. |
Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by plan | During the three and six months ended June 30, 2019 and 2018 , we recognized share-based compensation expense as follows: For the Three Months Ended June 30, For the Six Months 2019 2018 2019 2018 General and administrative $ 2,795 $ 6,774 $ 7,715 $ 14,328 Property management expense 820 1,242 1,507 3,186 Total $ 3,615 $ 8,016 $ 9,222 $ 17,514 As of June 30, 2019 , there is $30,300 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 2.48 years. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Assets carried at historical cost on the condensed consolidated balance sheets: Investments in debt securities (1) Level 2 $ 331,088 $ 332,229 $ 366,599 $ 365,196 Liabilities carried at historical cost on the condensed consolidated balance sheets: Mortgage loans (2) Level 2 $ 6,554,273 $ 6,576,873 $ 7,263,476 $ 7,235,685 Secured Term Loan (3) Level 3 403,464 407,300 — — Term Loan Facility (4) Level 3 1,500,000 1,501,037 1,500,000 1,500,773 Convertible Senior Notes (5) Level 3 561,830 558,344 557,301 544,249 (1) The carrying values of investments in debt securities are shown net of discount. (2) The carrying values of the mortgage loans are shown net of discount and exclude $44,311 and $61,822 of deferred financing costs as of June 30, 2019 and December 31, 2018 , respectively. (3) The carrying value of the Secured Term Loan excludes $2,595 of deferred financing costs as of June 30, 2019 . (4) The carrying value of the Term Loan Facility excludes $7,696 and $9,140 of deferred financing costs as of June 30, 2019 and December 31, 2018 , respectively. (5) The carrying values of the Convertible Senior Notes include unamortized discounts of $13,159 and $17,692 as of June 30, 2019 and December 31, 2018 , respectively. |
Schedule of impaired assets, measured at fair value on a nonrecurring basis | The assets for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below: For the Three Months Ended June 30, For the Six Months Ended 2019 2018 2019 2018 Investments in single-family residential properties, net held for use (Level 3): Pre-impairment amount $ 7,313 $ 764 $ 7,553 $ 764 Total impairments (1,788 ) (176 ) (1,818 ) (176 ) Fair value $ 5,525 $ 588 $ 5,735 $ 588 For the Three Months Ended June 30, For the Six Months Ended 2019 2018 2019 2018 Investments in single-family residential properties, net held for sale (Level 3): Pre-impairment amount $ 12,090 $ 9,183 $ 31,114 $ 12,408 Total impairments (2,288 ) (1,495 ) (5,511 ) (2,098 ) Fair value $ 9,802 $ 7,688 $ 25,603 $ 10,310 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share calculation | Basic and diluted EPS are calculated as follows: For the Three Months For the Six Months (in thousands, except share and per share data) 2019 2018 2019 2018 Numerator: Net income (loss) available to common stockholders — basic and diluted $ 38,833 $ (14,155 ) $ 59,549 $ (31,646 ) Denominator: Weighted average common shares outstanding — basic 525,070,036 520,509,058 523,265,455 520,087,371 Effect of dilutive securities: Incremental shares attributed to non-vested share-based awards 863,607 — 925,014 — Weighted average common shares outstanding — diluted 525,933,643 520,509,058 524,190,469 520,087,371 Net income (loss) per common share — basic $ 0.07 $ (0.03 ) $ 0.11 $ (0.06 ) Net income (loss) per common share — diluted $ 0.07 $ (0.03 ) $ 0.11 $ (0.06 ) |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , for the periods below: Operating Leases Finance Leases Remainder of 2019 $ 2,238 $ 316 2020 4,552 621 2021 4,169 543 2022 2,713 41 2023 1,565 — Thereafter 1,835 — Total lease payments 17,072 1,521 Less: imputed interest (1,417 ) (59 ) Total lease liability $ 15,655 $ 1,462 |
Schedule of lease payments | The components of lease expense for the three and six months ended June 30, 2019 are as follows: For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 Operating lease cost: Fixed lease cost $ 916 $ 1,897 Variable lease cost 356 699 Total operating lease cost $ 1,272 $ 2,596 |
Schedule of lessor payments | Future minimum rental revenues under leases existing on our single-family residential properties as of June 30, 2019 are as follows: Lease Payments to be Received Remainder of 2019 $ 645,097 2020 417,831 2021 42,085 2022 — 2023 — Thereafter — Total $ 1,105,013 |
Organization and Formation (Det
Organization and Formation (Details) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Feb. 06, 2017 |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
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 shares, 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 |
Starwood Waypoint Homes | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Partnership interest | 99.00% |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Other property income | $ 28,578 | $ 56,455 | |||
Interest expense | $ 95,706 | 97,226 | $ 189,689 | 189,525 | |
Gain on sale of property, net of tax | 26,172 | $ 3,941 | 43,744 | $ 9,443 | |
Operating Lease, Right-of-Use Asset | 14,510 | 14,510 | $ 14,118 | ||
Operating lease liability | 15,655 | 15,655 | $ 14,118 | ||
Operating Lease, Variable Lease Income | $ 23,253 | $ 44,583 | |||
Lease, Practical Expedients, Package [true false] | true | ||||
Lease, Practical Expedient, Use of Hindsight [true false] | false | ||||
Merger with Starwood Waypoint Homes | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Limited Partners Capital Account, Conversion Ratio | 1 |
Investments in Single-Family _3
Investments in Single-Family Residential Properties - Net Carrying Amount of Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||
Land | $ 4,522,979 | $ 4,561,441 |
Single-family residential property | 13,080,759 | 13,026,317 |
Capital improvements | 521,531 | 525,670 |
Equipment | 115,715 | 116,546 |
Total gross investments in the properties | 18,240,984 | 18,229,974 |
Less: accumulated depreciation | (1,777,457) | (1,543,914) |
Investments in single-family residential properties, net | $ 16,463,527 | $ 16,686,060 |
Investments in Single-Family _4
Investments in Single-Family Residential Properties - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Capitalized acquisition costs, net | $ 119,574 | $ 119,574 | $ 120,438 | ||
Accumulated capitalized interest costs | 64,513 | 64,513 | 66,449 | ||
Capitalized property taxes, net | 25,216 | 25,216 | 25,670 | ||
Capitalized insurance, net | 4,642 | 4,642 | 4,694 | ||
Capitalized HOA Fees, net | 2,754 | 2,754 | $ 2,779 | ||
Depreciation and amortization | 133,031 | $ 146,450 | 266,640 | $ 290,950 | |
Provisions for impairment | 4,076 | 1,671 | 7,329 | 2,274 | |
Real Estate Properties [Domain] | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | 131,782 | 128,501 | 264,302 | 255,162 | |
Furniture and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | 1,249 | 1,503 | 2,338 | 2,895 | |
In-place lease intangible assets | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | $ 0 | $ 16,446 | $ 0 | $ 32,893 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Reconciliation to Statements of Cash Flows (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 77,046 | $ 144,940 | $ 166,874 | $ 179,878 |
Restricted cash | 242,409 | 215,051 | 243,048 | 236,684 |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 319,455 | $ 359,991 | $ 409,922 | $ 416,562 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash - Schedule of Restricted Cash Accounts (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 242,409 | $ 215,051 | $ 243,048 | $ 236,684 |
Resident security deposits | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 151,473 | 150,346 | ||
Property taxes | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 53,052 | 26,163 | ||
Collections | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 26,830 | 26,677 | ||
Capital expenditures | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 4,906 | 5,269 | ||
Letters of credit | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 3,452 | 3,444 | ||
Special and other reserves | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 2,696 | $ 3,152 |
Schedule of Other Assets (Detai
Schedule of Other Assets (Details) $ in Thousands | Jun. 30, 2019USD ($)property | Dec. 31, 2018USD ($)property |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Investments in debt securities, net | $ 331,088 | $ 366,599 |
Held for sale assets(1) | 151,012 | 154,077 |
Investment in unconsolidated joint venture | 56,026 | 56,622 |
Prepaid expenses | 39,577 | 30,970 |
Rent and other receivables, net | 29,457 | 33,117 |
ROU lease assets — operating and finance, net | 15,980 | |
Corporate fixed assets, net | 10,881 | 11,792 |
Derivative instruments (Note 7) | 7,841 | 75,405 |
Deferred leasing costs, net | 6,925 | 6,316 |
Amounts deposited and held by others | 4,501 | 1,010 |
Deferred financing costs, net | 3,949 | 5,134 |
Other | 15,727 | 18,128 |
Total | $ 672,964 | $ 759,170 |
Number Of Real Estate Properties Classified As Held-For-Sale | property | 708 | 738 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) | Jun. 30, 2019USD ($)property | Dec. 31, 2018USD ($)property | Jun. 30, 2019USD ($)property | Dec. 31, 2017USD ($) |
Schedule of Investments [Line Items] | ||||
Investments in debt securities, net | $ 331,088,000 | $ 366,599,000 | $ 331,088,000 | |
Debt Instrument, Unamortized Discount | 13,159,000 | 17,692,000 | 13,159,000 | |
Held-to-maturity securities, unrecognized holding gain | 0 | 0 | 0 | |
Held-to-maturity securities, unrecognized holding loss | 0 | 0 | 0 | |
Other than temporary impairment recognized in other comprehensive income | 0 | 0 | ||
Debt issuance costs, unamortized balance | $ 3,949,000 | $ 5,134,000 | $ 3,949,000 | |
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 9,673,000 | |||
Joint venture with FNMA | Merger with Starwood Waypoint Homes | ||||
Schedule of Investments [Line Items] | ||||
Interest joint venture | 10.00% | 10.00% | ||
Number of real estate properties owned by joint venture | property | 718 | 754 | 718 | |
Minimum | ||||
Schedule of Investments [Line Items] | ||||
Lessor leasing arrangements, operating leases, term of contract | 12 months | 12 months | ||
Residential Mortgage Backed Securities | ||||
Schedule of Investments [Line Items] | ||||
Investments in debt securities, net | $ 331,088,000 | $ 331,088,000 | ||
Residential Mortgage Backed Securities | Minimum | ||||
Schedule of Investments [Line Items] | ||||
Marketable securities, expected maturity term | 3 months | |||
Residential Mortgage Backed Securities | Maximum | ||||
Schedule of Investments [Line Items] | ||||
Marketable securities, expected maturity term | 8 years | |||
Secured Debt | ||||
Schedule of Investments [Line Items] | ||||
Debt Instrument, Unamortized Discount | 0 | $ 0 | ||
IH1 2017-1 | Secured Debt | ||||
Schedule of Investments [Line Items] | ||||
Debt Instrument, Unamortized Discount | $ 2,817,000 | $ 2,993,000 | $ 2,817,000 |
Other Assets Schedule of Leases
Other Assets Schedule of Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 14,510 | $ 14,118 |
Operating lease liability | 15,655 | $ 14,118 |
Finance Lease, Right-of-Use Asset | 1,470 | |
Finance lease liability | $ 1,462 | |
Operating lease, weighted average remaining lease term | 4 years | |
Finance lease, weighted average remaining lease term | 2 years | |
Operating lease, weighted average discount rate | 4.00% | |
Finance lease, weighted average discount rate | 4.00% |
Debt - Schedule of Mortgage Loa
Debt - Schedule of Mortgage Loans (Details) $ in Thousands | Jul. 09, 2019USD ($) | Jun. 30, 2019USD ($)extension | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Less: deferred financing costs, net | $ (54,602) | |||
Long-term Debt | 8,964,965 | |||
Payments on mortgage loans | 709,383 | $ 3,198,588 | ||
Debt Instrument, Unamortized Discount | $ 13,159 | $ 17,692 | ||
London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable rate | 2.40% | |||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 6,554,273 | 7,263,476 | ||
Less: deferred financing costs, net | (44,311) | (61,822) | ||
Long-term Debt | 6,509,962 | 7,201,654 | ||
Debt Instrument, Unamortized Discount | $ 0 | |||
CSH 2016-2 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 0.00% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 0 | 442,614 | ||
IH1 2017-1 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 4.23% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 995,790 | 995,826 | ||
Stated interest rate | 4.23% | |||
Debt Instrument, Term | 10 years | |||
Debt Instrument, Unamortized Discount | $ 2,817 | 2,993 | ||
SWH 2017-1, IH 2017-2, IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 [Member] | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 2 years | |||
Debt Instrument, Extended Term | 1 year | |||
SWH 2017-1, IH 2017-2, IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 [Member] | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 0.76% | |||
Debt Instrument, Term | 2 years | |||
Debt Instrument, Number Of Extensions | extension | 3 | |||
SWH 2017-1, IH 2017-2, IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 [Member] | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.47% | |||
Debt Instrument, Number Of Extensions | extension | 5 | |||
SWH 2017-1 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.95% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 758,893 | 764,685 | ||
SWH 2017-1 | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.02% | |||
SWH 2017-1 | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 3.47% | |||
IH 2017-2 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.70% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 734,165 | 856,238 | ||
IH 2017-2 | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 0.91% | |||
IH 2017-2 | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 2.31% | |||
IH 2017-2 | Subsequent Event | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Payments on mortgage loans | $ 50,000 | |||
IH 2018-1 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.51% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 809,506 | 911,827 | ||
IH 2018-1 | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 0.76% | |||
IH 2018-1 | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 2.06% | |||
IH 2018-2 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.80% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 1,020,651 | 1,035,749 | ||
IH 2018-2 | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 0.95% | |||
IH 2018-2 | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 2.30% | |||
IH 2018-3 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.82% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 1,284,176 | 1,296,959 | ||
IH 2018-3 | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.05% | |||
IH 2018-3 | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 2.30% | |||
IH 2018-4 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.81% | |||
Long-Term Debt, Net Of Unamortized Discount (Premium) | $ 951,092 | $ 959,578 | ||
IH 2018-4 | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 1.15% | |||
IH 2018-4 | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 2.25% |
Debt - Mortgage Loans Narrative
Debt - Mortgage Loans Narrative (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019USD ($)propertyextensionloan | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)property | Apr. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Investments in debt securities, net | $ | $ 331,088 | $ 366,599 | ||
Payments on mortgage loans | $ | $ (709,383) | $ (3,198,588) | ||
Secured Debt | Class G Certificates | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, loan principal as a percentage of mortgage pool | 5.00% | 5.00% | ||
Stated interest rate | 0.0005% | |||
Secured Debt | IH1 2017-1 | ||||
Debt Instrument [Line Items] | ||||
Number of loans | loan | 2 | |||
Debt Instrument, Term | 10 years | |||
Stated interest rate | 4.23% | |||
Secured Debt | IH1 2017-1 | Class B Certificates | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 4.23% | |||
Secured Debt | SWH 2017-1, IH 2017-2, IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of loans | loan | 6 | |||
Debt Instrument, Term | 2 years | |||
Debt Instrument, Extended Term | 1 year | |||
Secured Debt | Residential Real Estate | ||||
Debt Instrument [Line Items] | ||||
Number of Real Estate Properties | property | 37,416 | 41,644 | ||
Secured Debt | Minimum | SWH 2017-1, IH 2017-2, IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 2 years | |||
Debt Instrument, Number Of Extensions | extension | 3 | |||
Basis spread | 0.76% | |||
Secured Debt | Maximum | SWH 2017-1, IH 2017-2, IH 2018-1, IH 2018-2, IH 2018-3, IH 2018-4 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Number Of Extensions | extension | 5 | |||
Basis spread | 3.47% |
Debt Debt - Secured Term Loan N
Debt Debt - Secured Term Loan Narrative (Details) - Notes Payable, Other Payables [Member] | 6 Months Ended |
Jun. 30, 2019property | |
Debt Instrument [Line Items] | |
Debt Instrument, Term | 12 years |
Debt, Weighted Average Interest Rate | 3.59% |
Maximum | |
Debt Instrument [Line Items] | |
Annual Limitation on Collateral Substitution, Percentage | 20.00% |
Limitation on Collateral Substitution, Percentage | 100.00% |
Special Releases Allowed After First Anniversary | 4 |
Special Release of Collateral, Percentage | 15.00% |
Residential Real Estate | |
Debt Instrument [Line Items] | |
Number of Real Estate Properties | 3,326 |
Fixed Rate [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Term | 11 years |
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.47% |
Debt Debt - Schedule of Secured
Debt Debt - Schedule of Secured Term Loan (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 9,032,726 | |
Less: deferred financing costs, net | (54,602) | |
Long-term Debt | 8,964,965 | |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 403,464 | $ 0 |
Less: deferred financing costs, net | (2,595) | 0 |
Long-term Debt | $ 400,869 | $ 0 |
Debt Instrument, Term | 12 years | |
Debt, Weighted Average Interest Rate | 3.59% | |
Fixed Rate [Member] | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 11 years | |
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.47% |
Debt - Term Loan Facility and R
Debt - Term Loan Facility and Revolving Facility (Details) $ in Thousands | Feb. 06, 2017USD ($) | Jun. 30, 2019 |
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 2,500,000 | |
Debt instrument, number of maturity date extensions | 1 year | |
Revolving Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.20% | |
Line of credit facility, facility fee percentage | 0.125% | |
Revolving Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, unused capacity, commitment fee percentage | 0.35% | |
Line of credit facility, facility fee percentage | 0.30% | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, additional borrowing capacity | $ 1,500,000 | |
Debt covenant, net leverage ratio | 8 | |
Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.00% | |
Line of Credit | Federal Funds Effective Swap Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.50% | |
Line of Credit | Revolving Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 1,000,000 | |
Line of Credit | Revolving Facility | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.75% | |
Line of Credit | Revolving Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.75% | |
Line of Credit | Revolving Facility | Minimum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.75% | |
Line of Credit | Revolving Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.30% | |
Line of Credit | Revolving Facility | Maximum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.30% | |
Line of Credit | Term Loan Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | $ 1,500,000 | |
Line of Credit | Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.70% | |
Line of Credit | Term Loan Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.70% | |
Line of Credit | Term Loan Facility | Minimum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 0.70% | |
Line of Credit | Term Loan Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 2.30% | |
Line of Credit | Term Loan Facility | Maximum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread | 1.30% |
Debt Debt - Schedule of Term Lo
Debt Debt - Schedule of Term Loan Facility and Revolving Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Long-term Debt, Gross | $ 9,032,726 | |
Less: deferred financing costs, net | (54,602) | |
Long-term Debt | 8,964,965 | |
Term Loan Facility | ||
Line of Credit Facility [Line Items] | ||
Less: deferred financing costs, net | $ (7,696) | |
London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, variable rate | 2.40% | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt, Gross | $ 0 | |
Less: deferred financing costs, net | 0 | |
Long-term Debt | $ 0 | |
Line of Credit | Term Loan Facility | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate at Period End | 4.10% | |
Long-term Debt, Gross | $ 1,500,000 | $ 1,500,000 |
Less: deferred financing costs, net | (7,696) | (9,140) |
Long-term Debt | $ 1,492,304 | 1,490,860 |
Line of Credit | Revolving Facility | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate at Period End | 4.15% | |
Long-term Debt, Gross | $ 0 | $ 0 |
Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Line of Credit | London Interbank Offered Rate (LIBOR) | Term Loan Facility | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.70% | |
Line of Credit | London Interbank Offered Rate (LIBOR) | Revolving Facility | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes Narrative (Details) | Jul. 01, 2019shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jul. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||
Convertible senior notes | $ 574,989,000 | $ 574,989,000 | $ 574,993,000 | |||||
Debt Instrument, Principal Amount Used For Conversion | $ 1,000 | 1,000 | ||||||
Amortization of debt discounts | $ 4,709,000 | $ 4,508,000 | ||||||
Share Price | $ / shares | $ 26.73 | $ 26.73 | ||||||
Debt instrument, percentage of repurchase price to principal amount if company undergoes fundamental change | 100.00% | 100.00% | ||||||
Debt instrument, event of default minimum percentage of principal amount | 25.00% | 25.00% | ||||||
Debt instrument, percentage of repurchase price to principal amount if company defaults | 100.00% | 100.00% | ||||||
3.00% Convertible Senior Note | 2019 Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible senior notes | $ 229,989,000 | $ 229,989,000 | 229,993,000 | $ 230,000,000 | ||||
Stated interest rate | 3.00% | 3.00% | 3.00% | |||||
Debt instrument, convertible, conversion ratio | 0.0545954 | |||||||
Debt Instrument, Principal Amount Used For Conversion | $ 1,000 | $ 1,000 | ||||||
Debt instrument, convertible conversion price (in dollars per share) | $ / shares | $ 18.32 | $ 18.32 | ||||||
Amortization of debt discounts | $ 2,783,000 | $ 2,751,000 | $ 5,586,000 | 5,503,000 | ||||
3.00% Convertible Senior Note | 2022 Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, convertible conversion price (in dollars per share) | $ / shares | $ 22.85 | $ 22.85 | ||||||
3.50% Convertible Senior Note | 2022 Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible senior notes | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | ||||
Stated interest rate | 3.50% | 3.50% | 3.50% | |||||
Debt instrument, convertible, conversion ratio | 0.0437694 | |||||||
Debt Instrument, Principal Amount Used For Conversion | $ 1,000 | $ 1,000 | ||||||
Amortization of debt discounts | $ 4,217,000 | $ 4,158,000 | 8,434,000 | $ 8,316,000 | ||||
2019 Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | 105,576,000 | |||||||
2022 Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | $ 58,635,000 | |||||||
Subsequent Event | 3.00% Convertible Senior Note | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 12,553,864 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Senior Notes (Details) | Jul. 01, 2019shares | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 16, 2017USD ($) | Jan. 31, 2017USD ($) | Jul. 31, 2014USD ($) |
Convertible Notes Payable [Abstract] | ||||||
Principal Amount | $ 574,989,000 | $ 574,993,000 | ||||
Net unamortized fair value adjustment | (13,159,000) | (17,692,000) | ||||
Total | 561,830,000 | 557,301,000 | ||||
Debt Instrument, Principal Amount Used For Conversion | $ 1,000 | |||||
2019 Convertible Notes | 3.00% Convertible Senior Note | ||||||
Convertible Notes Payable [Abstract] | ||||||
Coupon Rate | 3.00% | 3.00% | ||||
Effective Rate | 4.92% | |||||
Conversion Rate | 0.0545954 | |||||
Principal Amount | $ 229,989,000 | 229,993,000 | $ 230,000,000 | |||
Convertible debt, fair value disclosures | $ 223,185,000 | |||||
Debt Instrument, Principal Amount Used For Conversion | $ 1,000 | |||||
2022 Convertible Notes | 3.50% Convertible Senior Note | ||||||
Convertible Notes Payable [Abstract] | ||||||
Coupon Rate | 3.50% | 3.50% | ||||
Effective Rate | 5.12% | |||||
Conversion Rate | 0.0437694 | |||||
Remaining Amortization Period | 2 years 6 months 18 days | |||||
Principal Amount | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | |||
Convertible debt, fair value disclosures | $ 324,252,000 | |||||
Debt Instrument, Principal Amount Used For Conversion | $ 1,000 | |||||
Subsequent Event | 3.00% Convertible Senior Note | ||||||
Convertible Notes Payable [Abstract] | ||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 12,553,864 |
Debt - Debt Maturities Schedule
Debt - Debt Maturities Schedule (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Year | ||
Remainder of 2019 | $ 1,723,047 | |
2020 | 3,114,333 | |
2021 | 951,092 | |
2022 | 1,845,000 | |
2023 | 0 | |
Thereafter | 1,399,254 | |
Total | 9,032,726 | |
Less: deferred financing costs, net | (54,602) | |
Less: unamortized fair value adjustment | (13,159) | $ (17,692) |
Long-term Debt | 8,964,965 | |
Mortgage Loans | ||
Year | ||
Remainder of 2019 | 1,493,058 | |
2020 | 3,114,333 | |
2021 | 951,092 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 995,790 | |
Total | 6,554,273 | |
Less: deferred financing costs, net | (44,311) | (61,822) |
Less: unamortized fair value adjustment | 0 | |
Long-term Debt | 6,509,962 | 7,201,654 |
Notes Payable, Other Payables [Member] | ||
Year | ||
Remainder of 2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 403,464 | |
Total | 403,464 | 0 |
Less: deferred financing costs, net | (2,595) | 0 |
Less: unamortized fair value adjustment | 0 | |
Long-term Debt | 400,869 | $ 0 |
Term Loan Facility | ||
Year | ||
Remainder of 2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 1,500,000 | |
2023 | 0 | |
Thereafter | 0 | |
Total | 1,500,000 | |
Less: deferred financing costs, net | (7,696) | |
Less: unamortized fair value adjustment | 0 | |
Long-term Debt | 1,492,304 | |
Line of Credit | ||
Year | ||
Remainder of 2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total | 0 | |
Less: deferred financing costs, net | 0 | |
Less: unamortized fair value adjustment | 0 | |
Long-term Debt | 0 | |
Convertible Senior Notes | ||
Year | ||
Remainder of 2019 | 229,989 | |
2020 | 0 | |
2021 | 0 | |
2022 | 345,000 | |
2023 | 0 | |
Thereafter | 0 | |
Total | 574,989 | |
Less: deferred financing costs, net | 0 | |
Less: unamortized fair value adjustment | (13,159) | |
Long-term Debt | $ 561,830 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 16, 2017USD ($) |
Derivative [Line Items] | |||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | $ 13,131 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 277,954 | $ 60,593 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 293,771 | ||
Not Designated as Hedging Instrument | Minimum | |||
Derivative [Line Items] | |||
Interest rate cap | 3.24% | ||
Not Designated as Hedging Instrument | Maximum | |||
Derivative [Line Items] | |||
Interest rate cap | 5.12% | ||
Interest rate swaps | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Fair value of swaps acquired in merger | $ 21,135 | ||
Interest rate caps | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Debt service coverage ratio | 1.2 |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Swap Instruments (Details) - Designated as Hedging Instrument - London Interbank Offered Rate (LIBOR) - USD ($) $ in Thousands | Jun. 30, 2019 | Feb. 15, 2019 |
Interest Rate Swap Cancelled | ||
Derivative [Line Items] | ||
Strike Rate | 2.21% | |
Interest Rate Swap 1 | ||
Derivative [Line Items] | ||
Strike Rate | 1.97% | |
Notional Amount | $ 750,000 | |
Interest Rate Swap 2 | ||
Derivative [Line Items] | ||
Strike Rate | 1.97% | |
Notional Amount | $ 750,000 | |
Interest Rate Swap 3 | ||
Derivative [Line Items] | ||
Strike Rate | 1.59% | |
Notional Amount | $ 1,100,000 | |
Interest Rate Swap 4 | ||
Derivative [Line Items] | ||
Strike Rate | 1.63% | |
Notional Amount | $ 595,000 | |
Interest Rate Swap 5 | ||
Derivative [Line Items] | ||
Strike Rate | 1.60% | |
Notional Amount | $ 325,000 | |
Interest Rate Swap 6 | ||
Derivative [Line Items] | ||
Strike Rate | 1.12% | |
Notional Amount | $ 450,000 | |
Interest Rate Swap 7 | ||
Derivative [Line Items] | ||
Strike Rate | 1.93% | |
Notional Amount | $ 550,000 | |
Interest Rate Swap 8 | ||
Derivative [Line Items] | ||
Strike Rate | 2.86% | |
Notional Amount | $ 400,000 | |
Interest Rate Swap 9 | ||
Derivative [Line Items] | ||
Strike Rate | 2.23% | |
Notional Amount | $ 800,000 | |
Interest Rate Swap 10 | ||
Derivative [Line Items] | ||
Strike Rate | 2.85% | |
Notional Amount | $ 400,000 | |
Interest Rate Swap 11 | ||
Derivative [Line Items] | ||
Strike Rate | 2.86% | |
Notional Amount | $ 400,000 | |
Interest Rate Swap 12 | ||
Derivative [Line Items] | ||
Strike Rate | 1.30% | |
Notional Amount | $ 450,000 | |
Interest Rate Swap 13 | ||
Derivative [Line Items] | ||
Strike Rate | 2.13% | |
Notional Amount | $ 550,000 | |
Interest Rate Swap 14 | ||
Derivative [Line Items] | ||
Strike Rate | 2.90% | |
Notional Amount | $ 400,000 | |
Interest Rate Swap 15 | ||
Derivative [Line Items] | ||
Strike Rate | 2.99% | |
Notional Amount | $ 325,000 | |
Interest Rate Swap 16 | ||
Derivative [Line Items] | ||
Strike Rate | 2.99% | |
Notional Amount | $ 595,000 | |
Interest Rate Swap 17 | ||
Derivative [Line Items] | ||
Strike Rate | 1.47% | |
Notional Amount | $ 450,000 | |
Interest Rate Swap 18 | ||
Derivative [Line Items] | ||
Strike Rate | 2.90% | |
Notional Amount | $ 1,100,000 | |
Interest Rate Swap 19 | ||
Derivative [Line Items] | ||
Strike Rate | 2.23% | |
Notional Amount | $ 550,000 | |
Interest Rate Swap 20 | ||
Derivative [Line Items] | ||
Strike Rate | 3.14% | |
Notional Amount | $ 400,000 | |
Interest Rate Swap 21 | ||
Derivative [Line Items] | ||
Strike Rate | 3.16% | |
Notional Amount | $ 400,000 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 7,841 | $ 75,405 |
Liability Derivatives | 280,795 | 90,967 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 7,841 | 75,405 |
Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 280,795 | 90,967 |
Interest rate swaps | Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 7,833 | 74,929 |
Interest rate swaps | Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 280,788 | 90,527 |
Interest rate caps | Not Designated as Hedging Instrument | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 8 | 476 |
Interest rate caps | Not Designated as Hedging Instrument | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 7 | $ 440 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting of Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting assets: | ||
Gross Amounts of Recognized Assets | $ 7,841 | $ 75,405 |
Gross Amounts Offset in the Condensed Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 7,841 | 75,405 |
Gross Amounts not Offset in the Statement of Financial Position, Financial Instruments | (2,841) | (30,374) |
Gross Amounts not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | 0 |
Net Amount | 5,000 | 45,031 |
Offsetting liabilities: | ||
Gross Amounts of Recognized Liabilities | 280,795 | 90,967 |
Gross Amounts Offset in the Condensed Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 280,795 | 90,967 |
Gross Amounts not Offset in the Statement of Financial Position, Financial Instruments | (2,841) | (30,374) |
Gross Amounts not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | 0 |
Net Amount | $ 277,954 | $ 60,593 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 95,706 | $ 97,226 | $ 189,689 | $ 189,525 |
Interest rate caps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in Net Income (Loss) on Derivative | 1 | (598) | 34 | (345) |
AOCI into Net Loss | Reclassified from AOCI | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest expense | 7,891 | 3,596 | 18,754 | 3,325 |
Cash Flow Hedging | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative | $ (148,599) | $ 15,826 | $ (236,467) | $ 75,726 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Jul. 01, 2019shares | Jun. 30, 2019shares | Jun. 30, 2018shares | Jun. 30, 2019shares | Jun. 30, 2018shares | Mar. 31, 2019shares | Dec. 31, 2018shares | Mar. 31, 2018shares | Dec. 31, 2017shares |
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding (in shares) | 525,126,947 | 525,126,947 | 520,647,977 | ||||||
Issuance of common stock (in shares) | 4,478,970 | ||||||||
Redeemable OP Units outstanding (in units) | 5,463,285 | 5,463,285 | |||||||
Restricted Stock Units (RSUs) | |||||||||
Class of Stock [Line Items] | |||||||||
Fully vested RSUs (in shares) | 1,263,448 | ||||||||
Merger with Starwood Waypoint Homes | |||||||||
Class of Stock [Line Items] | |||||||||
Conversion ratio from units to shares | 1 | ||||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding (in shares) | 525,126,947 | 520,493,369 | 525,126,947 | 520,493,369 | 524,989,775 | 520,647,977 | 520,364,636 | 519,173,142 | |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 137,172 | 128,733 | 905,677 | 915,190 | |||||
Redemption of OP Units for common stock (in shares) | 3,573,293 | 405,037 | |||||||
3.00% Convertible Senior Note | Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Debt Conversion, Converted Instrument, Shares Issued | 12,553,864 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | May 31, 2019 | May 15, 2019 | Feb. 28, 2019 | Feb. 13, 2019 | Nov. 30, 2018 | Nov. 14, 2018 | Aug. 31, 2018 | Aug. 16, 2018 | May 31, 2018 | May 15, 2018 | Feb. 28, 2018 | Feb. 13, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Equity [Abstract] | ||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | ||||||||||
Dividends declared per common share | $ 0.13 | $ 0.13 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.13 | $ 0.11 | $ 0.26 | $ 0.22 | ||||||
Dividends, total amount paid | $ 68,334 | $ 67,965 | $ 57,518 | $ 57,563 | $ 57,559 | $ 57,432 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transactions [Abstract] | ||||
Management fees earned | $ 713 | $ 692 | $ 1,449 | $ 1,399 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | May 01, 2019 | Jun. 30, 2019 |
PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 367,585 | |
Share based compensation arrangement, performance units granted and vested in period (in shares) | 23,392 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 231,574 | |
Omnibus Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement, number of shares authorized (in shares) | 16,000,000 | |
Omnibus Incentive Plan | Restricted Stock Units (RSUs) - Performance-Based and OP Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement, award vesting period | 3 years | |
Stock Granted, Value, Share-based Compensation, Gross | $ 11,800 | |
Omnibus Incentive Plan | Restricted Stock Units (RSUs) - Performance-Based and OP Units [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |
Omnibus Incentive Plan | Restricted Stock Units (RSUs) - Performance-Based and OP Units [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |
Omnibus Incentive Plan | Restricted Stock Units (RSUs) - Performance-Based and OP Units [Member] | Share-based Compensation Award, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |
LTIP Agreement | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 529,901 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 52,896 | |
LTIP Agreement | PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement, award vesting period | 3 years | |
Director [Member] | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 53,704 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Total Share-Based Awards (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Time-Vesting Awards | |
Restricted Stock and Restricted Stock Units Outstanding | |
Balance, Beginning of period (in shares) | 1,595,644 |
Granted (in shares) | 239,412 |
Fully vested RSUs (in shares) | (1,069,264) |
Forfeited (in shares) | (66,417) |
Balance, Ending of period (in shares) | 699,375 |
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | |
Balance, Beginning of period (in dollars per share) | $ / shares | $ 21.63 |
Granted (in dollars per share) | $ / shares | 23.38 |
Vested (in dollars per share) | $ / shares | (21.46) |
Forfeited (in dollars per share) | $ / shares | (21.95) |
Balance, Ending of period (in dollars per share) | $ / shares | $ 22.46 |
PRSUs | |
Restricted Stock and Restricted Stock Units Outstanding | |
Balance, Beginning of period (in shares) | 888,733 |
Granted (in shares) | 367,585 |
Fully vested RSUs (in shares) | (83,938) |
Forfeited (in shares) | (231,574) |
Balance, Ending of period (in shares) | 940,806 |
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | |
Balance, Beginning of period (in dollars per share) | $ / shares | $ 22.09 |
Granted (in dollars per share) | $ / shares | 24.26 |
Vested (in dollars per share) | $ / shares | (21.21) |
Forfeited (in dollars per share) | $ / shares | (21.60) |
Balance, Ending of period (in dollars per share) | $ / shares | $ 23.14 |
Restricted Stock and Restricted Stock Units [Member] | |
Restricted Stock and Restricted Stock Units Outstanding | |
Balance, Beginning of period (in shares) | 2,484,377 |
Granted (in shares) | 606,997 |
Fully vested RSUs (in shares) | (1,153,202) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 30,107 |
Forfeited (in shares) | (297,991) |
Balance, Ending of period (in shares) | 1,640,181 |
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value | |
Balance, Beginning of period (in dollars per share) | $ / shares | $ 21.79 |
Granted (in dollars per share) | $ / shares | 23.91 |
Vested (in dollars per share) | $ / shares | (21.44) |
Forfeited (in dollars per share) | $ / shares | (21.68) |
Balance, Ending of period (in dollars per share) | $ / shares | $ 22.85 |
Omnibus Incentive Plan | |
Restricted Stock and Restricted Stock Units Outstanding | |
Fully vested RSUs (in shares) | (296,291) |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Inputs (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Assumptions | |
Expected volatility, minimum | 17.20% |
Expected volatility, maximum | 17.40% |
Risk-free rate, minimum | 2.25% |
Risk-free rate, minimum | 2.42% |
Minimum | |
Fair Value Assumptions | |
Expected holding period | 2 years 10 months 3 days |
Maximum | |
Fair Value Assumptions | |
Expected holding period | 2 years 11 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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation arrangement, allocated share-based compensation expense | $ 3,615 | $ 8,016 | $ 9,222 | $ 17,514 |
General and Administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation arrangement, allocated share-based compensation expense | 2,795 | 6,774 | 7,715 | 14,328 |
Property Management Expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share-based compensation arrangement, allocated share-based compensation expense | 820 | $ 1,242 | 1,507 | $ 3,186 |
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Employee service share-based compensation, compensation not yet recognized | $ 30,300 | $ 30,300 | ||
Share-based compensation arrangement, weighted average remaining contractual terms | 2 years 5 months 24 days |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Liabilities carried at historical cost on the consolidated balance sheets | ||
Less: deferred financing costs, net | $ (54,602) | |
Debt Instrument, Unamortized Discount | 13,159 | $ 17,692 |
Mortgage Loans | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Less: deferred financing costs, net | (44,311) | (61,822) |
Debt Instrument, Unamortized Discount | 0 | |
Secured Term Loan | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Less: deferred financing costs, net | (2,595) | 0 |
Debt Instrument, Unamortized Discount | 0 | |
Term Loan Facility | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Less: deferred financing costs, net | (7,696) | |
Debt Instrument, Unamortized Discount | 0 | |
Convertible Senior Notes | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Less: deferred financing costs, net | 0 | |
Debt Instrument, Unamortized Discount | 13,159 | |
Term Loan Facility | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Less: deferred financing costs, net | (7,696) | |
Fair Value | Level 2 | ||
Assets carried at historical cost on the consolidated balance sheets | ||
Investments in debt securities | 332,229 | 365,196 |
Fair Value | Mortgage Loans | Level 2 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 6,576,873 | 7,235,685 |
Fair Value | Secured Term Loan | Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 407,300 | 0 |
Fair Value | Term Loan Facility | Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 1,501,037 | 1,500,773 |
Fair Value | Convertible Senior Notes | Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 558,344 | 544,249 |
Carrying Value | Level 2 | ||
Assets carried at historical cost on the consolidated balance sheets | ||
Investments in debt securities | 331,088 | 366,599 |
Carrying Value | Mortgage Loans | Level 2 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 6,554,273 | 7,263,476 |
Carrying Value | Secured Term Loan | Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 403,464 | 0 |
Carrying Value | Term Loan Facility | Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | 1,500,000 | 1,500,000 |
Carrying Value | Convertible Senior Notes | Level 3 | ||
Liabilities carried at historical cost on the consolidated balance sheets | ||
Liabilities carried at historical cost | $ 561,830 | $ 557,301 |
Fair Value Measurements - Impai
Fair Value Measurements - Impaired Assets, Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Total impairments | $ (4,076) | $ (1,671) | $ (7,329) | $ (2,274) |
Fair Value, Measurements, Nonrecurring | Level 3 | Rental Properties | ||||
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Pre-impairment amount | 12,090 | 9,183 | 31,114 | 12,408 |
Total impairments | (2,288) | (1,495) | (5,511) | (2,098) |
Fair value | 9,802 | 7,688 | 25,603 | 10,310 |
Fair Value, Measurements, Nonrecurring | Level 3 | Rental Properties | ||||
Investments in single-family residential properties, net held for use and held for sale impairment adjustments | ||||
Pre-impairment amount | 7,313 | 764 | 7,553 | 764 |
Total impairments | (1,788) | (176) | (1,818) | (176) |
Fair value | $ 5,525 | $ 588 | $ 5,735 | $ 588 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income (loss) available to common stockholders — basic | $ 38,833 | $ (14,155) | $ 59,549 | $ (31,646) |
Net income (loss) available to common stockholders — diluted | $ 38,833 | $ (14,155) | $ 59,549 | $ (31,646) |
Denominator: | ||||
Shares used in calculation — basic | 525,070,036 | 520,509,058 | 523,265,455 | 520,087,371 |
Incremental shares attributed to non-vested share-based awards | 863,607 | 0 | 925,014 | 0 |
Weighted average common shares outstanding — diluted | 525,933,643 | 520,509,058 | 524,190,469 | 520,087,371 |
Net income (loss) per share — basic | $ 0.07 | $ (0.03) | $ 0.11 | $ (0.06) |
Net income (loss) per share — diluted | $ 0.07 | $ (0.03) | $ 0.11 | $ (0.06) |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted EPS | 0 | 1,129,465 | 9,495 | 1,242,853 |
3.00% Convertible Senior Note | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted EPS | 12,553,864 | 0 | 12,553,864 | 0 |
3.50% Convertible Senior Note | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted EPS | 15,100,443 | 0 | 15,100,443 | 0 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Deferred Tax Assets, Gross | $ 0 | $ 0 | $ 0 | ||
Deferred Tax Liabilities, Gross | 0 | 0 | $ 0 | ||
Income tax expense (benefit) recognized in gain on sale of property, net of tax | $ 844 | $ 455 | $ 1,605 | $ 849 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded Unconditional Purchase Obligation, Purchases | $ 9,600 |
Lessee, Finance Lease, Lease Not yet Commenced, Term of Contract | 50 months |
Material uninsured losses | $ 0 |
Commitments and Contingencies S
Commitments and Contingencies Schedule of fixed lease costs (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Remainder of 2019 | $ 2,238 | |
2020 | 4,552 | |
2021 | 4,169 | |
2022 | 2,713 | |
2023 | 1,565 | |
Thereafter | 1,835 | |
Total lease payments | 17,072 | |
Less: imputed interest | (1,417) | |
Total operating lease liability | 15,655 | $ 14,118 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
Remainder of 2019 | 316 | |
2020 | 621 | |
2021 | 543 | |
2022 | 41 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 1,521 | |
Less: imputed interest | (59) | |
Total finance lease liability | $ 1,462 |
Commitments and Contingencies_2
Commitments and Contingencies Schedule of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lease, Cost [Abstract] | ||
Fixed lease cost | $ 916 | $ 1,897 |
Variable lease cost | 356 | 699 |
Total operating lease cost | $ 1,272 | $ 2,596 |
Commitments and Contingencies_3
Commitments and Contingencies Schedule of rent revenues (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Schedule of rent revenues [Abstract] | |
Remainder of 2019 | $ 645,097 |
2020 | 417,831 |
2021 | 42,085 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total | $ 1,105,013 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ in Thousands | Jul. 09, 2019 | Jul. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | ||||
Payments on mortgage loans | $ 709,383 | $ 3,198,588 | ||
Subsequent Event | 3.00% Convertible Senior Note | ||||
Subsequent Event [Line Items] | ||||
Debt Conversion, Converted Instrument, Shares Issued | 12,553,864 | |||
Subsequent Event | IH 2017-2 | Mortgage Loans | ||||
Subsequent Event [Line Items] | ||||
Payments on mortgage loans | $ 50,000 | |||
Class E Certificates [Member] | Subsequent Event | IH 2017-2 | Mortgage Loans | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.31% |