Invitation Homes Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

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8-K - 8-K - Invitation Homes Inc.	a8-k110218q3earningsrelease.htm

Table of Contents



Earnings Press Release	2
Consolidated Financial Statements	9
Schedule 1: Reconciliation of FFO, Core FFO, and AFFO	11
Schedule 2: Capital Structure Information	12
Schedule 3: Summary of Operating Information by Home Portfolio	16
Schedule 4: Home Characteristics by Market	19
Schedule 5: Same Store Operating Information by Market	20
Schedule 6: Cost to Maintain and Capital Expenditure Detail	27
Schedule 7: Adjusted Property Management and G&A Reconciliation	28
Schedule 8: Acquisitions and Dispositions	29
Glossary and Reconciliations	30

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 1

Earnings Press Release

Invitation Homes Reports Third Quarter 2018 Results

Dallas, TX, November 5, 2018 — Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes" or the "Company"), a leading owner and operator of single-family homes for lease in the United States, today announced its third quarter 2018 financial and operating results.

Third Quarter 2018 Highlights


•	Year-over-year, total revenues increased 78.3% to $434 million, total property operating and maintenance expenses increased 82.3% to $170 million, and net income attributable to common shareholders increased to $1 million, or $0.00 per share.


•	Core FFO per share increased 21.3% year-over-year to $0.29 per share.


•	Same Store NOI grew 4.9% year-over-year on 4.4% Same Store Core revenue growth and 3.7% Same Store Core operating expense growth.


•	Same Store average occupancy was 95.5%, up 50 basis points year-over-year.


•	Continued strength in Same Store renewal rent growth of 4.8% and new lease rent growth of 3.3% drove Same Store blended rent growth of 4.2%.


•	As of October 31, 2018, $41 million of the total $50 - 55 million of expected merger synergies had been realized on a run-rate basis, outpacing management's previous expectation for 75% achievement by the end of 2018.


•	In October 2018, the Company used cash on hand to prepay $50 million of securitized debt maturing in 2021, incremental to the previously announced $200 million of securitized debt prepaid in the third quarter of 2018.

•

In the third quarter of 2018 and October 2018, pursuant to the Company's plan to further enhance portfolio quality, five bulk transactions were completed to dispose of homes with below-average rent. A total of 1,375 homes were sold across the five bulk transactions, with 147 homes closing in two September 2018 transactions, and the remaining 1,228 homes closing in three October 2018 transactions. Gross proceeds of $214 million from the five transactions are expected to be used for general corporate purposes and to repay debt.

Interim President Dallas Tanner comments: "Fundamentals in our high-growth markets remain favorable, and the high-quality service and living experience we provide continues to resonate with residents. As a result, we achieved another quarter of lower year-over-year turnover that drove Same Store average occupancy 50 basis points higher year-over-year to 95.5% in the third quarter of 2018. Blended rent growth also remained strong, driving Same Store Core revenue growth of 4.4% year-over-year in the third quarter of 2018, consistent with growth in the first half of the year.

"In addition to strong top line execution, our other operational priorities for the year are progressing well. With respect to merger integration, we achieved our 2018 year-end target of 75% run-rate synergy realization ahead of schedule. We also continue to fine-tune our integrated repairs and maintenance technology platform to increase the efficiency with which we serve our residents. With respect to capital recycling and balance sheet optimization, we closed the sale of 1,375 homes in bulk transactions in September and October to further enhance the quality of our portfolio and reduce leverage.

"We expect favorable fundamentals and execution on our key initiatives to continue driving growth, and are narrowing our 2018 Core FFO per share guidance to $1.16 - $1.18, a 12.0 - 13.9% increase versus 2017. We look forward to finishing the year strong as we remain focused on delivering value for our residents, associates, and shareholders."

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 2

Financial Results



Net Income (Loss), FFO, Core FFO, and AFFO Per Share — Diluted

	Q3 2018		Q3 2017			YTD 2018			YTD 2017
Net income (loss) ⁽¹⁾	$	—	$	(0.07	)	$	(0.06	)	$	(0.14	)
FFO ⁽²⁾	0.23		0.13			0.70			0.37
Core FFO ⁽²⁾	0.29		0.24			0.87			0.74
AFFO ⁽²⁾	0.22		0.20			0.70			0.63


(1)	No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, net income (loss) per share for YTD 2017 has been calculated based on operating results for the period from February 1, 2017 through September 30, 2017, and the weighted average number of shares outstanding during that same period, in accordance with GAAP.


(2)	No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. For YTD 2017, FFO, Core FFO, and AFFO per share have been calculated based on operating results for the full period from January 1, 2017 through September 30, 2017, and as if shares issued in connection with the IPO were issued on January 1, 2017.

Net Income (Loss)

Net income attributable to common shareholders for the three months ended September 30, 2018 was $0.00 per share, compared to a loss of $0.07 per share for the three months ended September 30, 2017. Total revenues and total operating and maintenance expenses for the three months ended September 30, 2018 were $434 million and $170 million, respectively, compared to $244 million and $93 million, respectively, for the three months ended September 30, 2017.

Net loss attributable to common shareholders for the nine months ended September 30, 2018 was a loss of $0.06 per share, compared to a loss of $0.14 per share for the prior year period during which the Company was public from February 1, 2017 to September 30, 2017. Total revenues and total operating and maintenance expenses for the nine months ended September 30, 2018 were $1,290 million and $496 million, respectively, compared to $725 million and $274 million, respectively, for the prior year period during which the Company was public from February 1, 2017 to September 30, 2017.

Core FFO

Year-over-year, Core FFO for the three months ended September 30, 2018 increased 21.3% to $0.29 per share, primarily due to an increase in NOI per share, driven by higher revenues, lower adjusted general and administrative expense per share, and lower cash interest expense per share.

Year-over-year, Core FFO for the nine months ended September 30, 2018 increased 18.0% to $0.87 per share, primarily due to an increase in NOI per share, driven by higher revenues, lower adjusted general and administrative expense per share, and lower cash interest expense per share.

AFFO

Year-over-year, AFFO for the three months ended September 30, 2018 increased 10.2% to $0.22 per share, primarily driven by the increase in Core FFO described above.

Year-over-year, AFFO for the nine months ended September 30, 2018 increased 10.5% to $0.70 per share, primarily driven by the increase in Core FFO described above.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 3

Operating Results



Same Store Operating Results Snapshot

Number of homes in Same Store portfolio:	71,226

	Q3 2018		Q3 2017		YTD 2018		YTD 2017
Core revenue growth (year-over-year)	4.4	%			4.4	%
Core operating expense growth (year-over-year)	3.7	%			4.2	%
NOI growth (year-over-year)	4.9	%			4.5	%

Average occupancy	95.5	%	95.0	%	95.8	%	95.5	%
Turnover rate	9.3	%	9.8	%	26.2	%	27.9	%

Rental rate growth (lease-over-lease):
Renewals	4.8	%	5.1	%	4.8	%	5.2	%
New leases	3.3	%	3.3	%	3.6	%	4.1	%
Blended	4.2	%	4.4	%	4.4	%	4.8	%

Same Store NOI

For the Same Store portfolio of 71,226 homes, third quarter 2018 Same Store NOI increased 4.9% year-over-year on Same Store Core revenue growth of 4.4% and Same Store Core operating expense growth of 3.7%.

YTD 2018 Same Store NOI increased 4.5% year-over-year on Same Store Core revenue growth of 4.4% and Same Store Core operating expense growth of 4.2%.

Same Store Core Revenues

Third quarter 2018 Same Store Core revenue growth of 4.4% year-over-year was driven by a 3.8% increase in average monthly rent, a 0.5% increase in average occupancy to 95.5%, and a 4.4% increase in other property income, net of resident reimbursements.

YTD 2018 Same Store Core revenue growth of 4.4% year-over-year was driven by a 3.9% increase in average monthly rent, a 0.3% increase in average occupancy to 95.8%, and a 7.5% increase in other property income, net of resident reimbursements.

Same Store Core Operating Expenses

Third quarter 2018 Same Store Core operating expenses increased 3.7% year-over-year, driven primarily by increases in repairs and maintenance (R&M) expenses and property taxes. Repairs and maintenance expenses remain elevated, but in-line with the Company's expectations, prior to completion of the R&M technology and personnel optimization efforts that are underway.

YTD 2018 Same Store Core operating expenses increased 4.2% year-over-year, driven primarily by increases in repairs and maintenance expenses and property taxes. The increase in repairs and maintenance expenses was primarily attributable to lower R&M productivity prior to completion of optimization efforts that are underway, and prioritization of service requests related to hurricane damage in the fourth quarter of 2017 that pushed routine, non-storm related service requests that otherwise would have been resolved in 2017 into the first quarter of 2018.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 4

Investment Management Activity

Invitation Homes acquired 249 homes for $72.8 million in the third quarter of 2018, including estimated renovation costs, and sold 413 homes for gross proceeds of $85.9 million, resulting in total portfolio home count of 82,260 homes at September 30, 2018.

Year-to-date, the Company acquired 702 homes for $205.1 million, including estimated renovation costs, and sold 1,012 homes for gross proceeds of $217.9 million.

Of the 413 homes sold during the third quarter, 147 were sold in two bulk transactions that closed in September 2018 for $22.5 million of gross proceeds. Subsequent to quarter end, the Company closed the sale of an additional 1,228 homes for $191.7 million in gross proceeds across three bulk transactions. Homes included in the five bulk sales had average in-place monthly rent of $1,404, 19.8% below that of the remaining portfolio. Proceeds from the transactions are expected to be used for general corporate purposes and to prepay debt.

Merger Integration Update

Completion of key integration milestones has unlocked $41 million of synergies on a run-rate basis as of October 31, 2018, and resulted in achievement of the Company's year-end 2018 target of 75% synergy realization faster than expected. Of the $41 million of synergies realized as of October 31, 2018, $36 million are related to property management and G&A, $4 million are related to operating expenses, and $1 million are related to capitalized expenses.

The company continues to expect to achieve total annualized cost synergies between $50 million and $55 million on a run-rate basis by mid-2019. Approximately two thirds of the remaining synergies are likely to be attributable to NOI and achieved after implementation of the Company's unified operating platform and field configuration in each market.

Balance Sheet and Capital Markets Activity

At September 30, 2018, the Company had $1,130 million in available liquidity through a combination of unrestricted cash and undrawn capacity on its revolving credit facility. The Company's total indebtedness at September 30, 2018 was $9,544 million, consisting of $7,469 million of secured debt and $2,075 million of unsecured debt.

As previously announced, the Company prepaid $200 million of securitized debt (CSH 2016-1) in July 2018 using proceeds from its June 2018 refinancings and cash on hand. In October 2018, the Company prepaid an additional $50 million of CSH 2016-1 using cash on hand. As of September 30, 2018, weighted average years to maturity of the Company's debt was 5.2 years, and the weighted average interest rate on total debt during the third quarter of 2018 was 3.3%.

Dividend

As previously announced, on November 1, 2018 the Company's Board of Directors declared a quarterly cash dividend of $0.11 per share of common stock. The dividend will be paid on or before November 30, 2018 to shareholders of record as of the close of business on November 14, 2018.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 5

Full Year 2018 Guidance Update



FY 2018 Guidance

	Revised	Previous
	FY 2018	FY 2018
	Guidance	Guidance
Core FFO per share – diluted	$1.16 - $1.18	$1.15 - $1.19
AFFO per share – diluted	$0.93 - $0.95	$0.94 - $0.98

Same Store Core revenue growth	4.4 - 4.5%	4.3 - 4.7%
Same Store Core operating expense growth	5.4 - 6.0%	4.6 - 5.4%
Same Store NOI growth	3.5 - 4.0%	3.8 - 4.8%

Changes to FY 2018 Guidance

The change in Same Store NOI growth guidance is primarily attributable to revised Same Store Core operating expense expectations.

The vast majority of the increase in Same Store Core operating expense growth guidance is attributable to higher expected real estate taxes. Property tax reassessments received in October 2018 have trended higher than expected. While the Company intends to appeal assessed values where appropriate, real estate tax expenses in the fourth quarter of 2018 are likely to be higher than what was contemplated in previous guidance.

Excluding real estate taxes, all other Same Store Core operating expenses are expected to fall within the previous range of expectations, though some are trending toward the high end of that previous range. Repairs and maintenance operating expenses remain on track to meet the midpoint of what was contemplated in previous guidance.

Taking into account revised expectations for Same Store results, guidance ranges for Core FFO per share and AFFO per share have also been revised.

Note: The Company does not provide guidance for the most comparable GAAP financial measures of net income (loss), total revenues, and property operating and maintenance, or a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store revenue growth, Same Store operating expense growth, and Same Store NOI growth to the comparable GAAP financial measures because it is unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of the Company's ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, casualty loss, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on our GAAP results for the guidance period.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 6

Earnings Conference Call Information

Invitation Homes has scheduled a conference call at 11:00 a.m. Eastern Time on Monday, November 5, 2018 to discuss results for the three months ended September 30, 2018. The domestic dial-in number is 1-888-317-6003, and the international dial-in number is 1-412-317-6061. The passcode is 8467806. An audio webcast may be accessed at www.invh.com. A replay of the call will be available through December 5, 2018, and can be accessed by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using the replay passcode 10125240, or by using the link at www.invh.com.

Supplemental Information

The full text of the Earnings Release and Supplemental Information referenced in this release are available on Invitation Homes' Investor Relations website at www.invh.com.

Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures

Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States ("GAAP"). These measures are defined in the Glossary in the Supplemental Information and, as applicable, reconciled to the most comparable GAAP measures.

About Invitation Homes

Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes across America. With over 80,000 homes for lease in 17 markets across the country, Invitation Homes is meeting changing lifestyle demands by providing residents access to updated homes with features they value, such as close proximity to jobs and access to good schools. The Company's mission statement, "Together with you, we make a house a home," reflects its commitment to high-touch service that continuously enhances residents' living experiences and provides homes where individuals and families can thrive.

Investor Relations Contact

Greg Van Winkle

Phone: 844.456.INVH (4684)

Email: IR@InvitationHomes.com

Media Relations Contacts

Claire Parker

Phone: 202.257.2329

Email: Media@InvitationHomes.com

Kristi DesJarlais

Phone: 972.421.3587

Email: Media@InvitationHomes.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which include, but are not limited to, statements related to the Company’s expectations regarding the anticipated benefits of the merger with Starwood Waypoint Homes, the performance of the Company’s business, its financial results, its liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks associated

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 7

with achieving expected revenue synergies or cost savings from the merger, risks inherent to the single-family rental industry sector and the Company’s business model, macroeconomic factors beyond the Company’s control, competition in identifying and acquiring the Company’s properties, competition in the leasing market for quality residents, increasing property taxes, homeowners' association fees and insurance costs, the Company’s dependence on third parties for key services, risks related to evaluation of properties, poor resident selection and defaults and non-renewals by the Company’s residents, performance of the Company’s information technology systems, and risks related to the Company’s indebtedness. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements can be found under the section entitled "Part I. Item 1A. Risk Factors," of the Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at http://www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 8



Consolidated Balance Sheets
($ in thousands, except shares and per share data)

	September 30,			December 31,
	2018			2017
	(unaudited)
Assets:
Investments in single-family residential properties, net	$	16,802,352		$	17,312,264
Cash and cash equivalents	130,037			179,878
Restricted cash	253,603			236,684
Goodwill	258,207			258,207
Other assets, net	1,032,449			696,605
Total assets	$	18,476,648		$	18,683,638


Mortgage loans, net	$	7,409,700		$	7,580,153
Term loan facility, net	1,490,138			1,487,973
Revolving facility	—			35,000
Convertible senior notes, net	555,081			548,536
Accounts payable and accrued expenses	275,203			193,413
Resident security deposits	151,305			146,689
Other liabilities	30,573			41,999
Total liabilities	9,912,000			10,033,763

Equity:
Shareholders' equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding at September 30, 2018 and December 31, 2017	—			—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 520,579,577 and 519,173,142 outstanding at September 30, 2018 and December 31, 2017, respectively	5,206			5,192
Additional paid-in-capital	8,624,380			8,602,603
Accumulated deficit	(360,344		)	(157,595		)
Accumulated other comprehensive income	151,886			47,885
Total shareholders' equity	8,421,128			8,498,085
Non-controlling interests	143,520			151,790
Total equity	8,564,648			8,649,875
Total liabilities and equity	$	18,476,648		$	18,683,638

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 9



Consolidated Statements of Operations
($ in thousands, except shares and per share amounts) (unaudited)

	Q3 2018			Q3 2017			YTD 2018			YTD 2017
Revenues:
Rental revenues	$	404,140		$	229,375		$	1,203,780		$	683,975
Other property income	30,111			14,161			86,566			40,527
Total revenues	434,251			243,536			1,290,346			724,502

Operating expenses:
Property operating and maintenance	170,021			93,267			496,211			274,275
Property management expense	16,692			10,852			48,204			31,436
General and administrative	21,152			27,462			73,424			104,154
Depreciation and amortization	139,371			67,466			430,321			202,558
Impairment and other	3,252			14,572			13,476			16,482
Total operating expenses	350,488			213,619			1,061,636			628,905
Operating income	83,763			29,917			228,710			95,597

Interest expense	(97,564		)	(56,796		)	(287,089		)	(182,726		)
Other, net	3,330			613			6,697			(482		)
Gain on sale of property, net of tax	11,512			3,756			20,955			28,239

Net income (loss)	1,041			(22,510		)	(30,727		)	(59,372		)
Net income (loss) attributable to non-controlling interests	(21		)	—			532			—

Net income (loss) attributable to common shareholders	$	1,020		$	(22,510	)	$	(30,195	)	$	(59,372	)


										February 1, 2017
										through
	Q3 2018			Q3 2017			YTD 2018			September 30, 2017

Net income (loss) available to common shareholders — basic and diluted	$	824		$	(22,745	)	$	(30,822	)	$	(42,837	)

Weighted average common shares outstanding — basic	520,620,519			311,559,780			520,267,029			311,674,226
Weighted average common shares outstanding — diluted	521,761,076			311,559,780			520,267,029			311,674,226

Net income (loss) per common share — basic	$	—		$	(0.07	)	$	(0.06	)	$	(0.14	)
Net income (loss) per common share — diluted	$	—		$	(0.07	)	$	(0.06	)	$	(0.14	)

Dividends declared per common share	$	0.11		$	0.08		$	0.33		$	0.14

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 10

Supplemental Schedule 1



Reconciliation of FFO, Core FFO, and AFFO
($ in thousands, except shares and per share amounts) (unaudited)

FFO Reconciliation	Q3 2018			Q3 2017			YTD 2018			YTD 2017
Net income (loss) available to common shareholders	$	824		$	(22,745	)	$	(30,822	)	$	(59,716	)
Net income available to participating securities	196			235			627			344
Non-controlling interests	21			—			(532		)	—
Depreciation and amortization on real estate assets	132,168			66,671			420,223			200,023
Impairment on depreciated real estate investments	1,296			424			3,570			1,556
Net gain on sale of previously depreciated investments in real estate	(11,512		)	(3,756		)	(20,955		)	(28,239		)
FFO	$	122,993		$	40,829		$	372,111		$	113,968

Core FFO Reconciliation	Q3 2018			Q3 2017			YTD 2018			YTD 2017
FFO	$	122,993		$	40,829		$	372,111		$	113,968
Noncash interest expense	13,401			3,473			33,439			23,744
Share-based compensation expense	6,068			12,004			23,582			64,464
IPO related expenses	—			—			—			8,287
Merger and transaction-related expenses ⁽¹⁾	9,406			4,944			18,009			4,944
Severance expense	1,952			(20		)	6,292			417
Casualty losses, net	1,956			14,148			9,906			14,926
Core FFO	$	155,776		$	75,378		$	463,339		$	230,750

AFFO Reconciliation	Q3 2018			Q3 2017			YTD 2018			YTD 2017
Core FFO	$	155,776		$	75,378		$	463,339		$	230,750
Recurring capital expenditures	(39,399		)	(13,391		)	(93,640		)	(34,225		)
AFFO	$	116,377		$	61,987		$	369,699		$	196,525

Weighted average common shares outstanding — diluted ⁽²⁾	521,761,076			311,559,780			520,267,029			311,674,226

Net income (loss) per common share — diluted ⁽²⁾	$	—		$	(0.07	)	$	(0.06	)	$	(0.14	)

Weighted average shares and units outstanding — diluted ⁽³⁾	530,797,654			311,559,780			530,581,319			311,674,226

FFO per share — diluted ⁽³⁾	$	0.23		$	0.13		$	0.70		$	0.37
Core FFO per share — diluted ⁽³⁾	$	0.29		$	0.24		$	0.87		$	0.74
AFFO per share — diluted ⁽³⁾	$	0.22		$	0.20		$	0.70		$	0.63


(1)	In Q3 2018 and YTD 2018, includes $6,067 of depreciation expense related to the write-down of legacy technology systems replaced by newly integrated systems and furniture, fixtures, and equipment from abandoned legacy offices. All other merger and transaction-related expenses presented in the Core FFO Reconciliation are general and administrative expenses.


(2)	No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, net income (loss) per share for YTD 2017 has been calculated based on operating results for the period from February 1, 2017 through September 30, 2017, and the weighted average number of shares outstanding during that same period, in accordance with GAAP.


(3)	No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. For YTD 2017, FFO, Core FFO, and AFFO per share have been calculated based on operating results for the full period from January 1, 2017 through September 30, 2017, and as if shares issued in connection with the IPO were issued on January 1, 2017.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 11

Supplemental Schedule 2(a)



Diluted Shares Outstanding
(unaudited)

Weighted Average Amounts for Net Income (Loss) ⁽¹⁾	Q3 2018	Q3 2017	YTD 2018	YTD 2017
Total common shares — diluted	521,761,076	311,559,780	520,267,029	311,674,226

Weighted average amounts for FFO, Core FFO, and AFFO ⁽²⁾	Q3 2018	Q3 2017	YTD 2018	YTD 2017
Common shares — diluted	521,761,076	311,559,780	521,437,918	311,674,226
OP units	9,036,578	—	9,143,401	—
Total common shares and units — diluted	530,797,654	311,559,780	530,581,319	311,674,226

Period end amounts for FFO, Core FFO, and AFFO	September 30, 2018
Common shares — diluted	522,119,874
OP units	9,036,578
Total common shares and units — diluted	531,156,452


(1)	No shares of common stock were outstanding prior to the close of the Company's initial public offering. As such, YTD 2017 weighted average shares outstanding for net income (loss) are for the period from February 1, 2017 through September 30, 2017, in accordance with GAAP.


(2)	No shares of common stock or OP Units were outstanding prior to the close of the Company's initial public offering. As such, YTD 2017 weighted average shares and units outstanding for FFO, Core FFO, and AFFO are calculated as if shares issued in connection with the IPO were issued on January 1, 2017.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 12

Supplemental Schedule 2(b)



Debt Structure and Leverage Ratios — September 30, 2018
($ in thousands) (unaudited)

						Wtd Avg		Wtd Avg
						Interest		Years
Debt Structure	Balance			% of Total		Rate ^{(1) (2)}		to Maturity ⁽²⁾
Secured:
Fixed	$	998,951		10.5	%	4.2	%	8.7
Floating — swapped to fixed	4,620,000			48.4	%	3.0	%	4.9
Floating	1,850,512			19.4	%	3.5	%	6.2
Total secured	7,469,463			78.3	%	3.3	%	5.8

Unsecured:
Fixed (Convertible)	574,993			6.0	%	3.3	%	2.3
Floating — swapped to fixed	1,500,000			15.7	%	3.7	%	3.4
Floating	—			—	%	—	%	—
Total unsecured	2,074,993			21.7	%	3.6	%	3.1

Total Debt:
Fixed + floating swapped to fixed	7,693,944			80.6	%	3.3	%	4.9
Floating	1,850,512			19.4	%	3.5	%	6.2
Total debt	9,544,456			100.0	%	3.3	%	5.2
Unamortized discounts on notes payable	(22,993		)
Deferred financing costs	(66,544		)
Total Debt per Balance Sheet	9,454,919
Retained and repurchased certificates	(395,941		)
Cash, ex-security deposits ⁽³⁾	(230,148		)
Deferred financing costs	66,544
Unamortized discounts on notes payable	22,993
Net debt	$	8,918,367


Leverage Ratios	Q3 2018
Fixed charge coverage ratio	2.8		x
Net debt / annualized Adjusted EBITDAre	9.4		x


(1)	Includes the impact of interest rate swaps in place and effective as of September 30, 2018.


(2)	The impact of an October 2018 voluntary prepayment of $50,000 of the outstanding borrowings under CSH 2016-1, a securitized loan maturing in 2021, is not included in this table.


(3)	Represents cash and cash equivalents and the non-security deposit portion of restricted cash.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 13

Supplemental Schedule 2(c)



Debt Maturity Schedule — September 30, 2018 ⁽¹⁾
($ in thousands) (unaudited)
							Revolving							Wtd Avg
	Secured			Unsecured			Credit					% of		Interest
Debt Maturities, with Extensions ⁽²⁾	Debt			Debt			Facility		Balance			Total		Rate ⁽³⁾
2018	$	—		$	—		$	—	$	—		—	%	—	%
2019	—			229,993			—		229,993			2.4	%	3.0	%
2020	646,760			—			—		646,760			6.8	%	3.0	%
2021	928,914			—			—		928,914			9.7	%	3.1	%
2022	—			1,845,000			—		1,845,000			19.3	%	3.6	%
2023	767,835			—			—		767,835			8.1	%	2.7	%
2024	862,181			—			—		862,181			9.0	%	3.8	%
2025	3,264,822			—			—		3,264,822			34.2	%	3.1	%
2026	—			—			—		—			—	%	—	%
2027	998,951			—			—		998,951			10.5	%	4.2	%
	7,469,463			2,074,993			—		9,544,456			100.0	%	3.3	%
Unamortized discounts on notes payable	(3,081		)	(19,912		)	—		(22,993		)
Deferred financing costs	(56,682		)	(9,862		)	—		(66,544		)
Total per Balance Sheet	$	7,409,700		$	2,045,219		$	—	$	9,454,919


(1)	The impact of an October 2018 voluntary prepayment of $50,000 of the outstanding borrowings under CSH 2016-1, a securitized loan maturing in 2021, is not included in this table.


(2)	Assumes all extension options are exercised.


(3)	Includes the impact of interest rate swaps in place and effective as of September 30, 2018.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 14

Supplemental Schedule 2(d)



Cost to Maturity of Debt as of September 30, 2018
($ in thousands) (unaudited)

			Percentage of Weighted Average Debt Outstanding by Type								Weighted Average Cost by Instrument Type
	Weighted Average		Issued		Issued				Total		Spread to		Fixed Cost				Total Debt
	Amount of		Floating		Floating				Fixed		LIBOR		of				Including
	Debt		and		but Swapped		Issued		or Swapped		For Floating		Interest Rate		Fixed Rate		Swap
	Outstanding ⁽¹⁾		Not Swapped		to Fixed		Fixed		to Fixed		Rate Debt		Rate Swaps		Debt		Impact ⁽²⁾
4Q18	$	9,544,456	19.4	%	64.1	%	16.5	%	80.6	%	1.6	%	1.5	%	3.9	%	3.3	%
2019	9,429,144		15.7	%	68.8	%	15.5	%	84.3	%	1.6	%	1.9	%	4.0	%	3.6	%
2020	9,005,219		8.6	%	76.5	%	14.9	%	91.4	%	1.6	%	2.3	%	4.0	%	3.8	%
2021	8,475,129		7.6	%	76.5	%	15.9	%	92.3	%	1.5	%	2.5	%	4.0	%	4.0	%
2022	6,060,021		18.8	%	64.5	%	16.7	%	81.2	%	1.4	%	2.8	%	4.2	%	4.2	%
2023	5,144,886		10.2	%	70.4	%	19.4	%	89.8	%	1.4	%	2.9	%	4.2	%	4.2	%
2024	5,074,128		10.3	%	70.0	%	19.7	%	89.7	%	1.4	%	2.9	%	4.2	%	4.2	%
2025	2,306,709		10.1	%	46.6	%	43.3	%	89.9	%	1.4	%	2.9	%	4.2	%	4.2	%
2026	998,951		—	%	—	%	100.0	%	100.0	%	N/A		N/A		4.2	%	4.2	%
2027	437,896		—	%	—	%	100.0	%	100.0	%	N/A		N/A		4.2	%	4.2	%


(1)	In each period, represents September 30, 2018 debt that remains outstanding, assuming all debt is held until final maturity with all extension options exercised. The impact of an October 2018 voluntary prepayment of $50,000 of the outstanding borrowings under CSH 2016-1, a securitized loan maturing in 2021, is not included in this table.


(2)	Assumes September 30, 2018 LIBOR rate of 2.26% for all future periods.

Note: Schedule 2(d) is presented to show the estimated overall cost of Invitation Homes' debt, based on debt and interest rate swaps in place as of September 30, 2018, as well as the rate for 30-day LIBOR as of September 30, 2018. New debt not presented in this table may be issued, and/or existing debt presented in this table may be repaid prior to maturity. Similarly, new interest rate swaps may be put in place. 30-day LIBOR may also change. The aforementioned activities may change the amount of outstanding debt, the percentage of debt floating, swapped, or fixed, and/or the weighted average cost of debt and hedging instruments from what is presented in Schedule 2(d).

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 15

Supplemental Schedule 3(a)



Summary of Operating Information by Home Portfolio
($ in thousands) (unaudited)

Number of Homes, period-end	Q3 2018
Total portfolio	82,260
Same Store portfolio	71,226
Same Store % of Total	86.6		%

Core Revenues	Q3 2018			Q3 2017		Change YoY		YTD 2018		YTD 2017		Change YoY
Total portfolio	$	419,138		$	238,483	75.8	%	$	1,247,705	$	709,902	75.8	%
Same Store portfolio	366,910			351,333		4.4	%	1,091,694		1,045,929		4.4	%

Core Operating expenses	Q3 2018			Q3 2017		Change YoY		YTD 2018		YTD 2017		Change YoY
Total portfolio	$	154,908		$	88,214	75.6	%	$	453,570	$	259,675	74.7	%
Same Store portfolio	135,271			130,436		3.7	%	394,093		378,204		4.2	%


Net Operating Income	Q3 2018			Q3 2017		Change YoY		YTD 2018		YTD 2017		Change YoY
Total portfolio	$	264,230		$	150,269	75.8	%	$	794,135	$	450,227	76.4	%
Same Store portfolio	231,639			220,897		4.9	%	697,601		667,725		4.5	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 16

Supplemental Schedule 3(b)



Same Store Portfolio Operating Detail
($ in thousands) (unaudited)

							Change					Change								Change
	Q3 2018			Q3 2017			YoY		Q2 2018			Seq		YTD 2018			YTD 2017			YoY
Revenues:
Rental revenues	$	353,869		$	338,842		4.4	%	$	352,766		0.3	%	$	1,053,579		$	1,010,471		4.3	%
Other property income ⁽¹⁾	25,848			22,035			17.3	%	24,465			5.7	%	74,324			61,325			21.2	%
Total revenues	379,717			360,877			5.2	%	377,231			0.7	%	1,127,903			1,071,796			5.2	%
Less: Resident recoveries ⁽¹⁾	(12,807		)	(9,544		)	34.2	%	(11,475		)	11.6	%	(36,209		)	(25,867		)	40.0	%
Core revenues	366,910			351,333			4.4	%	365,756			0.3	%	1,091,694			1,045,929			4.4	%

Fixed Expenses:
Property taxes	62,589			60,488			3.5	%	62,653			(0.1	)%	187,558			178,922			4.8	%
Insurance expenses	7,397			6,870			7.7	%	7,421			(0.3	)%	21,717			20,869			4.1	%
HOA expenses	6,697			6,897			(2.9	)%	6,935			(3.4	)%	20,571			20,529			0.2	%

Controllable Expenses:
Repairs and maintenance	23,093			20,372			13.4	%	21,127			9.3	%	62,822			53,612			17.2	%
Personnel	16,139			16,732			(3.5	)%	16,518			(2.3	)%	50,157			50,509			(0.7	)%
Turnover	14,043			13,230			6.1	%	13,045			7.7	%	38,146			36,942			3.3	%
Utilities ⁽¹⁾	12,796			9,427			35.7	%	10,298			24.3	%	32,992			24,643			33.9	%
Leasing and marketing ⁽²⁾	2,729			3,262			(16.3	)%	2,917			(6.4	)%	8,503			10,262			(17.1	)%
Property administrative	2,595			2,702			(4.0	)%	2,420			7.2	%	7,836			7,783			0.7	%
Property operating and maintenance expenses	148,078			139,980			5.8	%	143,334			3.3	%	430,302			404,071			6.5	%
Less: Resident recoveries ⁽¹⁾	(12,807		)	(9,544		)	34.2	%	(11,475		)	11.6	%	(36,209		)	(25,867		)	40.0	%
Core operating expenses	135,271			130,436			3.7	%	131,859			2.6	%	394,093			378,204			4.2	%

Net Operating Income	$	231,639		$	220,897		4.9	%	$	233,897		(1.0	)%	$	697,601		$	667,725		4.5	%

(1)

The year-over-year increases in other property income, utilities, and resident recoveries are primarily attributable to an ongoing transition in utility billing policy. Residents continue to be responsible for costs associated with their water, sewer, and waste removal services, but providers of these services now invoice Invitation Homes rather than the resident for payment. Invitation Homes pays the utility provider, and subsequently bills the resident for reimbursement, resulting in materially higher utility expense that is offset by materially higher resident recoveries.


(2)	Same Store leasing and marketing expense includes amortization of leasing commissions of $2,354, $2,841, $2,578, $7,574 and $8,771 for Q3 2018, Q3 2017, Q2 2018, YTD 2018 and YTD 2017, respectively.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 17

Supplemental Schedule 3(c)



Same Store Quarterly Operating Trends
(unaudited)

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017

Average occupancy	95.5		%	96.1		%	95.7		%	95.3		%	95.0		%
Turnover rate	9.3		%	9.3		%	7.6		%	7.7		%	9.8		%
Trailing four quarters turnover rate	33.9		%	34.4		%	35.1		%	35.5		%	N/A
Average monthly rent	$	1,746		$	1,726		$	1,706		$	1,696		$	1,682
Rental rate growth (lease-over-lease):
Renewals	4.8		%	4.7		%	4.9		%	4.9		%	5.1		%
New leases	3.3		%	4.9		%	2.5		%	1.4		%	3.3		%
Blended	4.2		%	4.7		%	4.0		%	3.5		%	4.4		%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 18

Supplemental Schedule 4



Portfolio Characteristics — As of and for the Quarter Ended September 30, 2018 ⁽¹⁾
(unaudited)
						Average
	Number of	Average		Average		Monthly		Percent of
	Homes	Occupancy		Monthly Rent		Rent PSF		Revenue
Western United States:
Southern California	8,314	95.3	%	$	2,293	$	1.36	13.2	%
Northern California	4,555	95.8	%	1,970		1.28		6.4	%
Seattle	3,383	92.9	%	2,103		1.10		5.1	%
Phoenix	7,515	95.3	%	1,282		0.79		6.9	%
Las Vegas	2,688	95.9	%	1,533		0.77		3.0	%
Denver	2,208	92.8	%	1,907		1.07		3.0	%
Western US Subtotal	28,663	94.9	%	1,853		1.08		37.6	%

Florida:
South Florida	9,219	94.1	%	2,126		1.15		13.4	%
Tampa	8,627	93.9	%	1,610		0.88		9.7	%
Orlando	5,904	95.1	%	1,582		0.86		6.5	%
Jacksonville	1,932	94.0	%	1,630		0.82		2.2	%
Florida Subtotal	25,682	94.3	%	1,790		0.97		31.8	%

Southeast United States:
Atlanta	12,450	94.5	%	1,456		0.71		12.5	%
Carolinas	4,980	94.0	%	1,538		0.72		5.3	%
Nashville	782	96.1	%	1,826		0.86		1.0	%
Southeast US Subtotal	18,212	94.4	%	1,494		0.72		18.8	%

Texas:
Houston	2,414	92.1	%	1,541		0.79		2.6	%
Dallas	2,264	93.3	%	1,728		0.82		2.7	%
Texas Subtotal	4,678	92.7	%	1,630		0.81		5.3	%

Midwest United States:
Chicago	3,858	91.5	%	1,946		1.20		5.0	%
Minneapolis	1,167	95.9	%	1,833		0.93		1.5	%
Midwest US Subtotal	5,025	92.5	%	1,919		1.12		6.5	%

Total / Average	82,260	94.3	%	$	1,745	$	0.94	100.0	%
Same Store Total / Average	71,226	95.5	%	$	1,746	$	0.94	87.4	%


(1)	All data is for the total portfolio, unless otherwise noted.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 19

Supplemental Schedule 5(a)



Same Store Core Revenue Growth Summary — YoY Quarter
($ in thousands, except avg. monthly rent) (unaudited)

		Avg. Monthly Rent						Average Occupancy						Core Revenue
YoY, Q3 2018	# Homes	Q3 2018		Q3 2017		Change		Q3 2018		Q3 2017		Change		Q3 2018		Q3 2017		Change
Western United States:
Southern California	6,824	$	2,345	$	2,234	5.0	%	96.0	%	96.1	%	(0.1	)%	$	46,901	$	44,552	5.3	%
Northern California	3,247	1,927		1,810		6.5	%	96.9	%	96.3	%	0.6	%	18,648		17,426		7.0	%
Seattle	3,014	2,090		1,977		5.7	%	95.8	%	95.7	%	0.1	%	18,660		17,747		5.1	%
Phoenix	6,217	1,272		1,202		5.8	%	96.5	%	95.2	%	1.3	%	24,180		22,697		6.5	%
Las Vegas	2,506	1,538		1,476		4.2	%	96.2	%	95.6	%	0.6	%	11,538		10,951		5.4	%
Denver	1,866	1,914		1,844		3.8	%	94.4	%	93.5	%	0.9	%	10,480		9,905		5.8	%
Western US Subtotal	23,674	1,853		1,762		5.2	%	96.1	%	95.6	%	0.5	%	130,407		123,278		5.8	%

Florida:
South Florida	8,335	2,145		2,087		2.8	%	95.1	%	94.0	%	1.1	%	52,220		50,121		4.2	%
Tampa	8,087	1,615		1,573		2.7	%	94.8	%	94.2	%	0.6	%	38,533		37,141		3.7	%
Orlando	5,578	1,577		1,501		5.1	%	96.4	%	95.9	%	0.5	%	26,468		24,977		6.0	%
Jacksonville	1,880	1,630		1,579		3.2	%	95.1	%	95.3	%	(0.2	)%	9,151		8,856		3.3	%
Florida Subtotal	23,880	1,792		1,735		3.3	%	95.3	%	94.6	%	0.7	%	126,372		121,095		4.4	%

Southeast United States:
Atlanta	11,362	1,457		1,401		4.0	%	95.4	%	95.5	%	(0.1	)%	48,783		46,964		3.9	%
Carolinas	3,705	1,495		1,454		2.8	%	94.6	%	94.5	%	0.1	%	16,180		15,729		2.9	%
Nashville	210	2,123		2,119		0.2	%	95.8	%	90.4	%	5.4	%	1,348		1,254		7.5	%
Southeast US Subtotal	15,277	1,475		1,423		3.7	%	95.2	%	95.2	%	—	%	66,311		63,947		3.7	%

Texas:
Houston	2,005	1,547		1,539		0.5	%	93.6	%	93.6	%	—	%	8,962		8,885		0.9	%
Dallas	1,963	1,745		1,705		2.3	%	93.9	%	94.7	%	(0.8	)%	9,868		9,752		1.2	%
Texas Subtotal	3,968	1,645		1,622		1.4	%	93.7	%	94.2	%	(0.5	)%	18,830		18,637		1.0	%

Midwest United States:
Chicago	3,267	1,982		1,970		0.6	%	95.7	%	93.9	%	1.8	%	18,643		18,292		1.9	%
Minneapolis	1,160	1,833		1,776		3.2	%	96.5	%	95.1	%	1.4	%	6,347		6,084		4.3	%
Midwest US Subtotal	4,427	1,943		1,919		1.3	%	95.9	%	94.2	%	1.7	%	24,990		24,376		2.5	%

Same Store Total / Average	71,226	$	1,746	$	1,682	3.8	%	95.5	%	95.0	%	0.5	%	$	366,910	$	351,333	4.4	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 20

Supplemental Schedule 5(a) (Continued)



Same Store Core Revenue Growth Summary — Sequential Quarter
($ in thousands, except avg. monthly rent) (unaudited)

		Avg. Monthly Rent						Average Occupancy						Core Revenue
Seq, Q3 2018	# Homes	Q3 2018		Q2 2018		Change		Q3 2018		Q2 2018		Change		Q3 2018		Q2 2018		Change
Western United States:
Southern California	6,824	$	2,345	$	2,315	1.3	%	96.0	%	96.7	%	(0.7	)%	$	46,901	$	46,633	0.6	%
Northern California	3,247	1,927		1,896		1.6	%	96.9	%	97.4	%	(0.5	)%	18,648		18,482		0.9	%
Seattle	3,014	2,090		2,058		1.6	%	95.8	%	96.8	%	(1.0	)%	18,660		18,594		0.4	%
Phoenix	6,217	1,272		1,252		1.6	%	96.5	%	97.2	%	(0.7	)%	24,180		24,140		0.2	%
Las Vegas	2,506	1,538		1,517		1.4	%	96.2	%	96.4	%	(0.2	)%	11,538		11,412		1.1	%
Denver	1,866	1,914		1,895		1.0	%	94.4	%	94.6	%	(0.2	)%	10,480		10,389		0.9	%
Western US Subtotal	23,674	1,853		1,828		1.4	%	96.1	%	96.7	%	(0.6	)%	130,407		129,650		0.6	%

Florida:
South Florida	8,335	2,145		2,129		0.8	%	95.1	%	95.3	%	(0.2	)%	52,220		51,974		0.5	%
Tampa	8,087	1,615		1,602		0.8	%	94.8	%	95.2	%	(0.4	)%	38,533		38,507		0.1	%
Orlando	5,578	1,577		1,553		1.5	%	96.4	%	96.8	%	(0.4	)%	26,468		26,178		1.1	%
Jacksonville	1,880	1,630		1,608		1.4	%	95.1	%	96.4	%	(1.3	)%	9,151		9,107		0.5	%
Florida Subtotal	23,880	1,792		1,774		1.0	%	95.3	%	95.7	%	(0.4	)%	126,372		125,766		0.5	%

Southeast United States:
Atlanta	11,362	1,457		1,436		1.5	%	95.4	%	96.0	%	(0.6	)%	48,783		48,501		0.6	%
Carolinas	3,705	1,495		1,478		1.2	%	94.6	%	95.6	%	(1.0	)%	16,180		16,200		(0.1	)%
Nashville	210	2,123		2,133		(0.5	)%	95.8	%	94.0	%	1.8	%	1,348		1,306		3.2	%
Southeast US Subtotal	15,277	1,475		1,456		1.3	%	95.2	%	95.9	%	(0.7	)%	66,311		66,007		0.5	%

Texas:
Houston	2,005	1,547		1,542		0.3	%	93.6	%	94.7	%	(1.1	)%	8,962		9,056		(1.0	)%
Dallas	1,963	1,745		1,732		0.8	%	93.9	%	94.6	%	(0.7	)%	9,868		9,904		(0.4	)%
Texas Subtotal	3,968	1,645		1,636		0.6	%	93.7	%	94.6	%	(0.9	)%	18,830		18,960		(0.7	)%

Midwest United States:
Chicago	3,267	1,982		1,973		0.5	%	95.7	%	96.6	%	(0.9	)%	18,643		18,982		(1.8	)%
Minneapolis	1,160	1,833		1,814		1.0	%	96.5	%	97.7	%	(1.2	)%	6,347		6,391		(0.7	)%
Midwest US Subtotal	4,427	1,943		1,931		0.6	%	95.9	%	96.9	%	(1.0	)%	24,990		25,373		(1.5	)%

Same Store Total / Average	71,226	$	1,746	$	1,726	1.2	%	95.5	%	96.1	%	(0.6	)%	$	366,910	$	365,756	0.3	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 21

Supplemental Schedule 5(a) (Continued)



Same Store Core Revenue Growth Summary — YoY Year-To-Date
($ in thousands, except avg. monthly rent) (unaudited)

		Avg. Monthly Rent						Average Occupancy						Core Revenue
YoY, YTD 2018	# Homes	YTD 2018		YTD 2017		Change		YTD 2018		YTD 2017		Change		YTD 2018		YTD 2017		Change
Western United States:
Southern California	6,824	$	2,315	$	2,198	5.3	%	96.3	%	96.3	%	—	%	$	138,965	$	131,686	5.5	%
Northern California	3,247	1,894		1,775		6.7	%	97.2	%	97.0	%	0.2	%	55,135		51,626		6.8	%
Seattle	3,014	2,058		1,944		5.9	%	96.3	%	96.4	%	(0.1	)%	55,421		52,556		5.5	%
Phoenix	6,217	1,253		1,184		5.8	%	97.0	%	96.2	%	0.8	%	71,997		67,717		6.3	%
Las Vegas	2,506	1,516		1,453		4.3	%	96.4	%	95.9	%	0.5	%	34,279		32,471		5.6	%
Denver	1,866	1,893		1,808		4.7	%	94.7	%	94.5	%	0.2	%	31,208		29,438		6.0	%
Western US Subtotal	23,674	1,827		1,732		5.5	%	96.5	%	96.2	%	0.3	%	387,005		365,494		5.9	%

Florida:
South Florida	8,335	2,128		2,068		2.9	%	95.0	%	94.5	%	0.5	%	155,145		149,735		3.6	%
Tampa	8,087	1,602		1,558		2.8	%	94.9	%	95.1	%	(0.2	)%	114,838		111,370		3.1	%
Orlando	5,578	1,554		1,480		5.0	%	96.6	%	96.3	%	0.3	%	78,379		74,154		5.7	%
Jacksonville	1,880	1,611		1,565		2.9	%	95.8	%	95.0	%	0.8	%	27,275		26,266		3.8	%
Florida Subtotal	23,880	1,774		1,717		3.3	%	95.4	%	95.1	%	0.3	%	375,637		361,525		3.9	%

Southeast United States:
Atlanta	11,362	1,438		1,382		4.1	%	95.8	%	95.8	%	—	%	145,306		139,254		4.3	%
Carolinas	3,705	1,479		1,443		2.5	%	95.0	%	95.0	%	—	%	48,317		47,115		2.6	%
Nashville	210	2,135		2,099		1.7	%	92.4	%	92.8	%	(0.4	)%	3,907		3,796		2.9	%
Southeast US Subtotal	15,277	1,457		1,406		3.6	%	95.5	%	95.6	%	(0.1	)%	197,530		190,165		3.9	%

Texas:
Houston	2,005	1,542		1,531		0.7	%	94.7	%	94.5	%	0.2	%	27,047		26,779		1.0	%
Dallas	1,963	1,730		1,681		2.9	%	94.3	%	94.6	%	(0.3	)%	29,509		28,797		2.5	%
Texas Subtotal	3,968	1,635		1,605		1.9	%	94.5	%	94.5	%	—	%	56,556		55,576		1.8	%

Midwest United States:
Chicago	3,267	1,973		1,961		0.6	%	95.9	%	94.5	%	1.4	%	56,014		55,026		1.8	%
Minneapolis	1,160	1,813		1,755		3.3	%	96.8	%	95.7	%	1.1	%	18,952		18,143		4.5	%
Midwest US Subtotal	4,427	1,931		1,907		1.3	%	96.1	%	94.8	%	1.3	%	74,966		73,169		2.5	%

Same Store Total / Average	71,226	$	1,726	$	1,661	3.9	%	95.8	%	95.5	%	0.3	%	$	1,091,694	$	1,045,929	4.4	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 22

Supplemental Schedule 5(b)



Same Store NOI Growth and Margin Summary — YoY Quarter
($ in thousands) (unaudited)

	Core Revenue						Core Operating Expenses						Net Operating Income						Core NOI Margin
YoY, Q3 2018	Q3 2018		Q3 2017		Change		Q3 2018		Q3 2017		Change		Q3 2018		Q3 2017		Change		Q3 2018		Q3 2017
Western United States:
Southern California	$	46,901	$	44,552	5.3	%	$	16,555	$	14,452	14.6	%	$	30,346	$	30,100	0.8	%	64.7	%	67.6	%
Northern California	18,648		17,426		7.0	%	6,013		5,367		12.0	%	12,635		12,059		4.8	%	67.8	%	69.2	%
Seattle	18,660		17,747		5.1	%	5,709		5,299		7.7	%	12,951		12,448		4.0	%	69.4	%	70.1	%
Phoenix	24,180		22,697		6.5	%	7,316		6,331		15.6	%	16,864		16,366		3.0	%	69.7	%	72.1	%
Las Vegas	11,538		10,951		5.4	%	3,222		3,042		5.9	%	8,316		7,909		5.1	%	72.1	%	72.2	%
Denver	10,480		9,905		5.8	%	2,142		2,688		(20.3	)%	8,338		7,217		15.5	%	79.6	%	72.9	%
Western US Subtotal	130,407		123,278		5.8	%	40,957		37,179		10.2	%	89,450		86,099		3.9	%	68.6	%	69.8	%

Florida:
South Florida	52,220		50,121		4.2	%	22,354		23,266		(3.9	)%	29,866		26,855		11.2	%	57.2	%	53.6	%
Tampa	38,533		37,141		3.7	%	16,310		15,793		3.3	%	22,223		21,348		4.1	%	57.7	%	57.5	%
Orlando	26,468		24,977		6.0	%	10,338		9,666		7.0	%	16,130		15,311		5.3	%	60.9	%	61.3	%
Jacksonville	9,151		8,856		3.3	%	3,702		3,555		4.1	%	5,449		5,301		2.8	%	59.5	%	59.9	%
Florida Subtotal	126,372		121,095		4.4	%	52,704		52,280		0.8	%	73,668		68,815		7.1	%	58.3	%	56.8	%

Southeast United States:
Atlanta	48,783		46,964		3.9	%	17,296		15,919		8.7	%	31,487		31,045		1.4	%	64.5	%	66.1	%
Carolinas	16,180		15,729		2.9	%	5,061		4,787		5.7	%	11,119		10,942		1.6	%	68.7	%	69.6	%
Nashville	1,348		1,254		7.5	%	302		281		7.5	%	1,046		973		7.5	%	77.6	%	77.6	%
Southeast US Subtotal	66,311		63,947		3.7	%	22,659		20,987		8.0	%	43,652		42,960		1.6	%	65.8	%	67.2	%

Texas:
Houston	8,962		8,885		0.9	%	4,209		4,445		(5.3	)%	4,753		4,440		7.0	%	53.0	%	50.0	%
Dallas	9,868		9,752		1.2	%	4,408		4,465		(1.3	)%	5,460		5,287		3.3	%	55.3	%	54.2	%
Texas Subtotal	18,830		18,637		1.0	%	8,617		8,910		(3.3	)%	10,213		9,727		5.0	%	54.2	%	52.2	%

Midwest United States:
Chicago	18,643		18,292		1.9	%	8,200		9,023		(9.1	)%	10,443		9,269		12.7	%	56.0	%	50.7	%
Minneapolis	6,347		6,084		4.3	%	2,134		2,057		3.7	%	4,213		4,027		4.6	%	66.4	%	66.2	%
Midwest US Subtotal	24,990		24,376		2.5	%	10,334		11,080		(6.7	)%	14,656		13,296		10.2	%	58.6	%	54.5	%

Same Store Total / Average	$	366,910	$	351,333	4.4	%	$	135,271	$	130,436	3.7	%	$	231,639	$	220,897	4.9	%	63.1	%	62.9	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 23

Supplemental Schedule 5(b) (Continued)



Same Store NOI Growth and Margin Summary — Sequential Quarter
($ in thousands) (unaudited)

	Core Revenue						Core Operating Expenses						Net Operating Income						Core NOI Margin
Seq, Q3 2018	Q3 2018		Q2 2018		Change		Q3 2018		Q2 2018		Change		Q3 2018		Q2 2018		Change		Q3 2018		Q2 2018
Western United States:
Southern California	$	46,901	$	46,633	0.6	%	$	16,555	$	15,574	6.3	%	$	30,346	$	31,059	(2.3	)%	64.7	%	66.6	%
Northern California	18,648		18,482		0.9	%	6,013		5,484		9.6	%	12,635		12,998		(2.8	)%	67.8	%	70.3	%
Seattle	18,660		18,594		0.4	%	5,709		5,484		4.1	%	12,951		13,110		(1.2	)%	69.4	%	70.5	%
Phoenix	24,180		24,140		0.2	%	7,316		6,750		8.4	%	16,864		17,390		(3.0	)%	69.7	%	72.0	%
Las Vegas	11,538		11,412		1.1	%	3,222		2,993		7.7	%	8,316		8,419		(1.2	)%	72.1	%	73.8	%
Denver	10,480		10,389		0.9	%	2,142		2,127		0.7	%	8,338		8,262		0.9	%	79.6	%	79.5	%
Western US Subtotal	130,407		129,650		0.6	%	40,957		38,412		6.6	%	89,450		91,238		(2.0	)%	68.6	%	70.4	%

Florida:
South Florida	52,220		51,974		0.5	%	22,354		23,011		(2.9	)%	29,866		28,963		3.1	%	57.2	%	55.7	%
Tampa	38,533		38,507		0.1	%	16,310		15,999		1.9	%	22,223		22,508		(1.3	)%	57.7	%	58.5	%
Orlando	26,468		26,178		1.1	%	10,338		10,117		2.2	%	16,130		16,061		0.4	%	60.9	%	61.4	%
Jacksonville	9,151		9,107		0.5	%	3,702		3,630		2.0	%	5,449		5,477		(0.5	)%	59.5	%	60.1	%
Florida Subtotal	126,372		125,766		0.5	%	52,704		52,757		(0.1	)%	73,668		73,009		0.9	%	58.3	%	58.1	%

Southeast United States:
Atlanta	48,783		48,501		0.6	%	17,296		16,655		3.8	%	31,487		31,846		(1.1	)%	64.5	%	65.7	%
Carolinas	16,180		16,200		(0.1	)%	5,061		4,684		8.0	%	11,119		11,516		(3.4	)%	68.7	%	71.1	%
Nashville	1,348		1,306		3.2	%	302		321		(5.9	)%	1,046		985		6.2	%	77.6	%	75.4	%
Southeast US Subtotal	66,311		66,007		0.5	%	22,659		21,660		4.6	%	43,652		44,347		(1.6	)%	65.8	%	67.2	%

Texas:
Houston	8,962		9,056		(1.0	)%	4,209		4,243		(0.8	)%	4,753		4,813		(1.2	)%	53.0	%	53.1	%
Dallas	9,868		9,904		(0.4	)%	4,408		4,313		2.2	%	5,460		5,591		(2.3	)%	55.3	%	56.5	%
Texas Subtotal	18,830		18,960		(0.7	)%	8,617		8,556		0.7	%	10,213		10,404		(1.8	)%	54.2	%	54.9	%

Midwest United States:
Chicago	18,643		18,982		(1.8	)%	8,200		8,469		(3.2	)%	10,443		10,513		(0.7	)%	56.0	%	55.4	%
Minneapolis	6,347		6,391		(0.7	)%	2,134		2,005		6.4	%	4,213		4,386		(3.9	)%	66.4	%	68.6	%
Midwest US Subtotal	24,990		25,373		(1.5	)%	10,334		10,474		(1.3	)%	14,656		14,899		(1.6	)%	58.6	%	58.7	%

Same Store Total / Average	$	366,910	$	365,756	0.3	%	$	135,271	$	131,859	2.6	%	$	231,639	$	233,897	(1.0	)%	63.1	%	63.9	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 24

Supplemental Schedule 5(b) (Continued)



Same Store NOI Growth and Margin Summary — YoY Year-to-Date
($ in thousands) (unaudited)

	Core Revenue						Core Operating Expenses						Net Operating Income						Core NOI Margin
YoY, YTD 2018	YTD 2018		YTD 2017		Change		YTD 2018		YTD 2017		Change		YTD 2018		YTD 2017		Change		YTD 2018		YTD 2017
Western United States:
Southern California	$	138,965	$	131,686	5.5	%	$	46,781	$	42,509	10.0	%	$	92,184	$	89,177	3.4	%	66.3	%	67.7	%
Northern California	55,135		51,626		6.8	%	16,997		15,780		7.7	%	38,138		35,846		6.4	%	69.2	%	69.4	%
Seattle	55,421		52,556		5.5	%	16,286		16,027		1.6	%	39,135		36,529		7.1	%	70.6	%	69.5	%
Phoenix	71,997		67,717		6.3	%	20,485		18,153		12.8	%	51,512		49,564		3.9	%	71.5	%	73.2	%
Las Vegas	34,279		32,471		5.6	%	9,034		8,849		2.1	%	25,245		23,622		6.9	%	73.6	%	72.7	%
Denver	31,208		29,438		6.0	%	5,675		6,932		(18.1	)%	25,533		22,506		13.4	%	81.8	%	76.5	%
Western US Subtotal	387,005		365,494		5.9	%	115,258		108,250		6.5	%	271,747		257,244		5.6	%	70.2	%	70.4	%

Florida:
South Florida	155,145		149,735		3.6	%	67,785		67,234		0.8	%	87,360		82,501		5.9	%	56.3	%	55.1	%
Tampa	114,838		111,370		3.1	%	48,342		44,970		7.5	%	66,496		66,400		0.1	%	57.9	%	59.6	%
Orlando	78,379		74,154		5.7	%	30,016		28,389		5.7	%	48,363		45,765		5.7	%	61.7	%	61.7	%
Jacksonville	27,275		26,266		3.8	%	10,853		10,278		5.6	%	16,422		15,988		2.7	%	60.2	%	60.9	%
Florida Subtotal	375,637		361,525		3.9	%	156,996		150,871		4.1	%	218,641		210,654		3.8	%	58.2	%	58.3	%

Southeast United States:
Atlanta	145,306		139,254		4.3	%	49,578		46,807		5.9	%	95,728		92,447		3.5	%	65.9	%	66.4	%
Carolinas	48,317		47,115		2.6	%	14,548		14,298		1.7	%	33,769		32,817		2.9	%	69.9	%	69.7	%
Nashville	3,907		3,796		2.9	%	966		863		11.9	%	2,941		2,933		0.3	%	75.3	%	77.3	%
Southeast US Subtotal	197,530		190,165		3.9	%	65,092		61,968		5.0	%	132,438		128,197		3.3	%	67.0	%	67.4	%

Texas:
Houston	27,047		26,779		1.0	%	12,597		13,041		(3.4	)%	14,450		13,738		5.2	%	53.4	%	51.3	%
Dallas	29,509		28,797		2.5	%	12,958		12,428		4.3	%	16,551		16,369		1.1	%	56.1	%	56.8	%
Texas Subtotal	56,556		55,576		1.8	%	25,555		25,469		0.3	%	31,001		30,107		3.0	%	54.8	%	54.2	%

Midwest United States:
Chicago	56,014		55,026		1.8	%	25,131		25,859		(2.8	)%	30,883		29,167		5.9	%	55.1	%	53.0	%
Minneapolis	18,952		18,143		4.5	%	6,061		5,787		4.7	%	12,891		12,356		4.3	%	68.0	%	68.1	%
Midwest US Subtotal	74,966		73,169		2.5	%	31,192		31,646		(1.4	)%	43,774		41,523		5.4	%	58.4	%	56.7	%

Same Store Total / Average	$	1,091,694	$	1,045,929	4.4	%	$	394,093	$	378,204	4.2	%	$	697,601	$	667,725	4.5	%	63.9	%	63.8	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 25

Supplemental Schedule 5(c)



Same Store Lease-Over-Lease Rent Growth
(unaudited)

	Rental Rate Growth
	Q3 2018						YTD 2018
	Renewal		New		Blended		Renewal		New		Blended
	Leases		Leases		Average		Leases		Leases		Average
Western United States:
Southern California	6.1	%	5.7	%	5.9	%	6.1	%	5.9	%	6.0	%
Northern California	6.6	%	9.5	%	7.5	%	6.7	%	9.1	%	7.5	%
Seattle	7.0	%	6.0	%	6.6	%	7.0	%	7.0	%	7.0	%
Phoenix	5.8	%	7.9	%	6.6	%	5.9	%	7.9	%	6.7	%
Las Vegas	5.0	%	4.9	%	4.9	%	5.2	%	4.4	%	5.0	%
Denver	5.4	%	0.1	%	3.4	%	5.7	%	2.0	%	4.4	%
Western US Subtotal	6.0	%	5.9	%	6.0	%	6.1	%	6.3	%	6.2	%

Florida:
South Florida	4.2	%	0.5	%	2.9	%	4.1	%	1.2	%	3.1	%
Tampa	4.2	%	0.9	%	2.8	%	4.1	%	1.7	%	3.2	%
Orlando	4.9	%	6.7	%	5.6	%	5.1	%	6.6	%	5.6	%
Jacksonville	3.2	%	5.2	%	4.1	%	3.3	%	4.7	%	3.9	%
Florida Subtotal	4.3	%	2.2	%	3.5	%	4.2	%	2.7	%	3.7	%

Southeast United States:
Atlanta	4.8	%	3.6	%	4.3	%	4.7	%	3.9	%	4.4	%
Carolinas	3.7	%	1.8	%	2.9	%	3.9	%	1.1	%	2.8	%
Nashville	2.6	%	(2.9	)%	0.5	%	2.0	%	(3.5	)%	(0.6	)%
Southeast US Subtotal	4.5	%	3.0	%	3.9	%	4.4	%	2.9	%	3.9	%

Texas:
Houston	2.8	%	(3.2	)%	0.7	%	3.2	%	(2.7	)%	1.2	%
Dallas	4.5	%	0.1	%	3.0	%	4.4	%	(0.4	)%	2.6	%
Texas Subtotal	3.6	%	(1.6	)%	1.9	%	3.8	%	(1.4	)%	2.0	%

Midwest United States:
Chicago	2.0	%	0.2	%	1.5	%	2.3	%	(0.5	)%	1.4	%
Minneapolis	4.6	%	4.2	%	4.4	%	4.9	%	3.3	%	4.3	%
Midwest US Subtotal	2.6	%	1.3	%	2.2	%	2.9	%	0.5	%	2.1	%

Same Store Total / Average	4.8	%	3.3	%	4.2	%	4.8	%	3.6	%	4.4	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 26

Supplemental Schedule 6



Same Store Cost to Maintain
($ in thousands, except per home amounts) (unaudited)

Total ($ 000)	Q3 2018			Q2 2018			Q1 2018
Recurring operating expenses (gross):
R&M OpEx	$	23,093		$	21,127		$	18,602
Turn OpEx	14,043			13,045			11,058
Total recurring operating expense (gross)	37,136			34,172			29,660
R&M + Turn recoveries	(3,336		)	(3,112		)	(2,091		)
Total recurring operating expenses (net)	$	33,800		$	31,060		$	27,568

Recurring capital expenditures:
R&M CapEx	$	26,552		$	18,616		$	13,981
Turn CapEx	7,765			6,221			7,779
Total recurring capital expenditures	$	34,317		$	24,837		$	21,760

Cost to maintain (gross):
R&M OpEx + CapEx	$	49,645		$	39,743		$	32,583
Turn OpEx + CapEx	21,808			19,266			18,837
Total cost to maintain (gross)	71,453			59,009			51,420
R&M + Turn recoveries	(3,336		)	(3,112		)	(2,091		)
Total cost to maintain (net)	$	68,117		$	55,897		$	49,329

Per Home ($)	Q3 2018			Q2 2018			Q1 2018
Total cost to maintain (gross)	$	1,003		$	828		$	722
R&M + Turn recoveries	(47		)	(44		)	(29		)
Total cost to maintain (net)	$	956		$	784		$	693



Total Portfolio Capital Expenditure Detail
($ in thousands) (unaudited)

Total ($ 000)	Q3 2018		Q2 2018		Q1 2018
Recurring CapEx	$	39,399	$	28,848	$	25,393
Value Enhancing CapEx	5,296		3,396		4,876
Initial Renovation CapEx	9,721		9,819		13,429
Total Capital Expenditures	$	54,416	$	42,063	$	43,698

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 27

Supplemental Schedule 7



Adjusted Property Management and G&A Reconciliation
($ in thousands) (unaudited)

Adjusted Property Management Expense	Q3 2018			Q3 2017			YTD 2018			YTD 2017
Property management expense (GAAP)	$	16,692		$	10,852		$	48,204		$	31,436
Adjustments:
Share-based compensation expense ⁽¹⁾	(1,167		)	(2,695		)	(4,353		)	(8,004		)
Adjusted property management expense	$	15,525		$	8,157		$	43,851		$	23,432


Adjusted G&A Expense	Q3 2018			Q3 2017			YTD 2018			YTD 2017
G&A expense (GAAP)	$	21,152		$	27,462		$	73,424		$	104,154
Adjustments:
Share-based compensation expense ⁽²⁾	(4,901		)	(9,309		)	(19,229		)	(56,460		)
IPO related expenses	—			—			—			(8,287		)
Merger and transaction-related expenses	(3,339		)	(4,944		)	(11,942		)	(4,944		)
Severance expense	(1,952		)	20			(6,292		)	(417		)
Adjusted G&A expense	$	10,960		$	13,229		$	35,961		$	34,046


(1)	For Q3 2018, Q3 2017, YTD 2018, and YTD 2017, includes $348, $1,271, $1,440, and $6,412, respectively, related to IPO and pre-IPO grants.


(2)	For Q3 2018, includes $699 related to IPO and pre-IPO grants and $980 related to merger grants. For Q3 2017, includes $5,158 related to IPO and pre-IPO grants. For YTD 2018, includes $4,289 related to IPO and pre-IPO grants and $2,495 related to merger grants. For YTD 2017, includes $51,219 related to IPO and pre-IPO grants.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 28

Supplemental Schedule 8



Acquisitions and Dispositions — Q3 2018
(unaudited)

	6/30/2018	Q3 2018 Acquisitions ⁽¹⁾			Q3 2018 Dispositions ⁽²⁾			9/30/2018
	Homes	Homes	Avg. Estimated		Homes	Average		Homes
	Owned	Acq.	Cost Basis		Sold	Sales Price		Owned
Western United States:
Southern California	8,334	1	$	332,201	21	$	335,740	8,314
Northern California	4,573	—	—		18	296,161		4,555
Seattle	3,359	31	363,681		7	299,843		3,383
Phoenix	7,464	79	281,100		28	175,284		7,515
Las Vegas	2,707	—	—		19	198,538		2,688
Denver	2,190	27	384,975		9	314,556		2,208
Western US Subtotal	28,627	138	320,345		102	254,819		28,663

Florida:
South Florida	9,258	—	—		39	238,559		9,219
Tampa	8,609	8	259,230		29	189,276		8,588
Orlando	5,919	38	289,046		14	238,071		5,943
Jacksonville	1,936	—	—		4	273,373		1,932
Florida Subtotal	25,722	46	283,860		86	223,480		25,682

Southeast United States:
Atlanta	12,428	42	237,766		20	194,000		12,450
Carolinas	4,988	9	262,678		17	191,729		4,980
Nashville	782	—	—		—	—		782
Southeast US Subtotal	18,198	51	242,162		37	192,957		18,212

Texas:
Houston	2,501	—	—		87	143,917		2,414
Dallas	2,256	14	228,189		6	191,283		2,264
Texas Subtotal	4,757	14	228,189		93	146,972		4,678

Midwest United States:
Chicago	3,951	—	—		93	208,251		3,858
Minneapolis	1,169	—	—		2	263,700		1,167
Midwest US Subtotal	5,120	—	—		95	209,418		5,025

Total / Average	82,424	249	$	292,410	413	$	208,023	82,260


(1)	Estimated stabilized cap rates on acquisitions during the quarter averaged 5.6%. Stabilized cap rate represents forecast nominal NOI for the twelve months following stabilization, divided by estimated cost basis.


(2)	Cap rates on dispositions during the quarter averaged 2.0%. Disposition cap rate represents actual NOI recognized in the twelve months prior to the month of disposition, divided by sales price.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 29

Glossary and Reconciliations

Glossary:

Average Estimated Cost Basis

Average estimated cost basis on acquisition represents the sum of purchase price, any closing adjustments, and estimated initial renovation expenditure for an acquired home or population of homes.

Average Monthly Rent

Average monthly rent represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period, and reflects the impact of non-service rental concessions and contractual rent increases amortized over the life of the lease.

Average Occupancy

Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period.

Core NOI Margin

Core NOI margin for an identified population of homes is calculated by dividing NOI by Core revenues attributable to such population.

Core Operating Expenses

Core operating expenses for an identified population of homes reflect property operating and maintenance expenses, excluding any expenses recovered from residents.

Core Revenues

Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries.

Cost to Maintain

Cost to maintain a home represents the sum of recurring repairs and maintenance and recurring turnover expenses (gross or net of resident reimbursements, as indicated in tables presented) and recurring capital expenditures.

EBITDA, EBITDAre, and Adjusted EBITDAre

EBITDA, EBITDAre and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States (“GAAP”) before the following items: interest expense; income tax expense; and depreciation and amortization. National Association of Real Estate Investment Trusts ("Nareit") recommends as a best practice that REITs operating as real estate companies which report an EBIDA performance measure also report EBITDAre in all financial reports for periods beginning after December 31, 2017. We define EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax and impairment on depreciated real estate investments. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; IPO related expenses; merger and transaction-related expenses; severance; casualty losses, net; acquisition costs; and interest income and other miscellaneous income and expenses. EBITDA, EBITDAre and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of our financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre and Adjusted EBITDAre as measures of performance.

The GAAP measure most directly comparable to EBITDA, EBITDAre and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre and Adjusted EBITDAre are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our EBITDA, EBITDAre and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre and Adjusted EBITDAre of other companies due to the fact that not all

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 30

companies use the same definitions of EBITDA, EBITDAre and Adjusted EBITDAre. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies.

See "Reconciliation of Non-GAAP Measures" below for a reconciliation of GAAP net income (loss) to EBITDA, EBITDAre and Adjusted EBITDAre.

Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO)

FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated partnerships and joint ventures.

We believe that FFO is a meaningful supplemental measure of the operating performance of our business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss.

The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. Core FFO and Adjusted FFO are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our Core FFO and Adjusted FFO may not be comparable to the Core FFO and Adjusted FFO of other companies due to the fact that not all companies use the same definition of Core FFO and Adjusted FFO. Accordingly, there can be no assurance that our basis for computing this non-GAAP measures is comparable with that of other companies.

Please see Supplemental Schedule 1 for a reconciliation of GAAP net income (loss) to FFO, Core FFO, and Adjusted FFO.

Initial Renovation CapEx

Initial renovation CapEx represents expenditures related to the first post-acquisition renovation of a home to bring the home to Invitation Homes standards and specifications.

Net Operating Income (NOI)

NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. We define NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs and marketing). NOI excludes: interest expense; depreciation and amortization; general and administrative expense; property management expense; impairment and other; acquisition costs; (gain) loss on sale of property, net of tax; and interest income and other miscellaneous income and expenses.

The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other companies.

We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting NOI for homes in our Same Store portfolio.

See "Reconciliation of Non-GAAP Measures" below for a reconciliation of GAAP net income (loss) to NOI for our total portfolio and NOI for our Same Store portfolio.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 31

PSF

PSF means per square foot.

Recurring Capital Expenditures or Recurring CapEx

Recurring Capital Expenditures or Recurring CapEx represents general replacements and expenditures required to preserve and maintain the value and functionality of a home and its systems as a single-family rental.

Rental Rate Growth

Rental rate growth for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease, and, in each case, reflects the impact of any amortized non-service rent concessions and contractual rent increases. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home.

Same Store / Same Store Portfolio

Same Store or Same Store portfolio includes, for a given reporting period, homes that have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, and homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure.

Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as the existing Invitation Homes Same Store portfolio may be considered stabilized at the time of acquisition.

Additionally, homes acquired via the Starwood Waypoint Homes merger have been deemed to qualify for the Same Store portfolio beginning in 2018 if they were stabilized, according to the Invitation Homes criteria for stabilization, within Starwood Waypoint Homes' portfolio prior to the merger.

We believe presenting information about the portion of our portfolio that has been fully operational for the entirety of a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods and about trends in our organic business. In order to provide meaningful comparative information across periods that, in some cases, pre-date the Starwood Waypoint Homes merger, all information regarding the performance of the Same Store portfolio for periods prior to December 31, 2017 is presented as though the Starwood Waypoint Homes merger was consummated on January 1, 2017.

Total Homes / Total Portfolio

Total homes or total portfolio refers to the total number of homes owned, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated.

Turnover Rate

Turnover rate represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population.

Value Enhancing CapEx

Value enhancing CapEx represents re-investment in stabilized homes, above and beyond general replacements to preserve and maintain the value and functionality of a home, for the purpose of enhancing expected risk-adjusted returns.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 32

Reconciliation of Non-GAAP Measures:



Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, Quarterly
(in thousands) (unaudited)

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017
Total revenues (Invitation Homes total portfolio)	$	434,251		$	432,426		$	423,669		$	329,954		$	243,536
Starwood Waypoint Homes revenues ⁽¹⁾	—			—			—			84,775			166,546
Pro Forma total revenues	434,251			432,426			423,669			414,729			410,082
Non-Same Store revenues	(54,534		)	(55,195		)	(52,714		)	(50,351		)	(49,205		)
Same Store revenues	379,717			377,231			370,955			364,378			360,877
Same Store resident recoveries	(12,807		)	(11,475		)	(11,927		)	(9,451		)	(9,544		)
Same Store Core revenues	$	366,910		$	365,756		$	359,028		$	354,927		$	351,333


(1)	Represents revenues generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of total revenues.



Reconciliation of Total Revenues to Same Store Total Revenues and Same Store Core Revenues, YTD
(in thousands) (unaudited)

	YTD 2018			YTD 2017
Total revenues (Invitation Homes total portfolio)	$	1,290,346		$	724,502
Starwood Waypoint Homes revenues ⁽¹⁾	—			462,475
Pro Forma total revenues	1,290,346			1,186,977
Non-Same Store revenues	(162,443		)	(115,181		)
Same Store revenues	1,127,903			1,071,796
Same Store resident recoveries	(36,209		)	(25,867		)
Same Store Core revenues	$	1,091,694		$	1,045,929


(1)	Represents revenues generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of total revenues.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 33



Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating Expenses, Quarterly
(in thousands) (unaudited)

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017
Property operating and maintenance expenses (total portfolio)	$	170,021		$	165,423		$	160,767		$	117,220		$	93,267
Starwood Waypoint Homes operating expenses ⁽¹⁾	—			—			—			31,919			66,106
Pro Forma total operating expenses	170,021			165,423			160,767			149,139			159,373
Non-Same Store operating expenses	(21,943		)	(22,089		)	(21,877		)	(19,635		)	(19,393		)
Same Store operating expenses	148,078			143,334			138,890			129,504			139,980
Same Store resident recoveries	(12,807		)	(11,475		)	(11,927		)	(9,451		)	(9,544		)
Same Store Core operating expenses	$	135,271		$	131,859		$	126,963		$	120,053		$	130,436


(1)	Represents property operating and maintenance expenses generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of property operating and maintenance expenses.



Reconciliation of Property Operating and Maintenance to Same Store Operating Expenses and Same Store Core Operating Expenses, YTD
(in thousands) (unaudited)

	YTD 2018			YTD 2017
Property operating and maintenance expenses (total portfolio)	$	496,211		$	274,275
Starwood Waypoint Homes operating expenses ⁽¹⁾	—			180,597
Pro Forma total operating expenses	496,211			454,872
Non-Same Store operating expenses	(65,909		)	(50,801		)
Same Store operating expenses	430,302			404,071
Same Store resident recoveries	(36,209		)	(25,867		)
Same Store Core operating expenses	$	394,093		$	378,204


(1)	Represents property operating and maintenance expenses generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of property operating and maintenance expenses.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 34



Reconciliation of Net Income (Loss) to NOI and Same Store NOI, Quarterly
(in thousands) (unaudited)

	Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017
Net income (loss) available to common shareholders	$	824		$	(14,155	)	$	(17,491	)	$	(46,236	)	$	(22,745	)
Net income available to participating securities	196			209			222			271			235
Non-controlling interests	21			(242		)	(311		)	(489		)	—
Interest expense	97,564			97,226			92,299			74,244			56,796
Depreciation and amortization	139,371			146,450			144,500			107,020			67,466
General and administrative	21,152			24,636			27,636			63,585			27,462
Property management expense	16,692			14,348			17,164			11,908			10,852
Impairment and other	3,252			4,103			6,121			7,611			14,572
Gain on sale of property, net of tax	(11,512		)	(3,941		)	(5,502		)	(5,657		)	(3,756		)
Other, net	(3,330		)	(1,631		)	(1,736		)	477			(613		)
NOI (total portfolio)	264,230			267,003			262,902			212,734			150,269
Starwood Waypoint Homes NOI ⁽¹⁾	—			—			—			52,856			100,440
Pro Forma total NOI	264,230			267,003			262,902			265,590			250,709
Non-Same Store NOI	(32,591		)	(33,106		)	(30,837		)	(30,716		)	(29,812		)
Same Store NOI	$	231,639		$	233,897		$	232,065		$	234,874		$	220,897


(1)	Represents NOI generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of NOI.



Reconciliation of Net Income (Loss) to NOI and Same Store NOI, YTD
(in thousands) (unaudited)

	YTD 2018			YTD 2017
Net income (loss) available to common shareholders	$	(30,822	)	$	(59,716	)
Net income available to participating securities	627			344
Non-controlling interests	(532		)	—
Interest expense	287,089			182,726
Depreciation and amortization	430,321			202,558
General and administrative	73,424			104,154
Property management expense	48,204			31,436
Impairment and other	13,476			16,482
Gain on sale of property, net of tax	(20,955		)	(28,239		)
Other, net	(6,697		)	482
NOI (total portfolio)	794,135			450,227
Starwood Waypoint Homes NOI ⁽¹⁾	—			281,878
Pro Forma total NOI	794,135			732,105
Non-Same Store NOI	(96,534		)	(64,380		)
Same Store NOI	$	697,601		$	667,725


(1)	Represents NOI generated by Starwood Waypoint Homes prior to its merger with Invitation Homes, expressed using Invitation Homes' definition of NOI.

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 35



Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre
(in thousands) (unaudited)

	Q3 2018			Q3 2017			% Change		YTD 2018			YTD 2017			% Change
Net income (loss) available to common shareholders	$	824		$	(22,745	)			$	(30,822	)	$	(59,716	)
Net income available to participating securities	196			235					627			344
Non-controlling interests	21			—					(532		)	—
Interest expense	97,564			56,796					287,089			182,726
Depreciation and amortization	139,371			67,466					430,321			202,558
EBITDA	237,976			101,752					686,683			325,912
Gain on sale of property, net of tax	(11,512		)	(3,756		)			(20,955		)	(28,239		)
Impairment on depreciated real estate investments	1,296			424					3,570			1,556
EBITDAre	227,760			98,420					669,298			299,229
Share-based compensation expense	6,068			12,004					23,582			64,464
IPO related expenses	—			—					—			8,287
Merger and transaction-related expenses	3,339			4,944					11,942			4,944
Severance	1,952			—					6,292			—
Casualty losses, net	1,956			14,148					9,906			14,926
Other, net	(3,330		)	(613		)			(6,697		)	482
Adjusted EBITDAre	$	237,745		$	128,903		84.4	%	$	714,323		$	392,332		82.1	%

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 36



Reconciliation of Net Debt / Annualized Adjusted EBITDAre
(in thousands, except for ratio) (unaudited)

	As of
	September 30, 2018
Mortgage loans, net	$	7,409,700
Term loan facility, net	1,490,138
Revolving facility	—
Convertible senior notes, net	555,081
Total Debt per Balance Sheet	9,454,919
Retained and repurchased certificates	(395,941		)
Cash, ex-security deposits ⁽¹⁾	(230,148		)
Deferred financing costs	66,544
Unamortized discounts on note payable	22,993
Net Debt (A)	$	8,918,367


	For the Three
	Months Ended
	September 30, 2018
Adjusted EBITDAre (B)	$	237,745

Annualized Adjusted EBITDAre (C = B x 4)	$	950,980

Net debt / annualized Adjusted EBITDAre (A / C)	9.4		x


(1)	Represents cash and cash equivalents and the non-security deposit portion of restricted cash.



Reconciliation of Fixed Charge Coverage Ratio
(in thousands, except for ratio) (unaudited)

	For the Three
	Months Ended
	September 30, 2018
Interest expense	$	97,564
Noncash interest expense	(13,401		)
Fixed charges (A)	$	84,163

Adjusted EBITDAre (B)	$	237,745

Fixed charge coverage ratio (B / A)	2.8		x

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 37



Components of Noncash Interest Expense
(in thousands) (unaudited)

	Q3 2018		Q3 2017		YTD 2018		YTD 2017
Amortization of discounts on notes payable	$	2,308	$	88	6,816		202
Amortization of deferred financing costs	8,148		3,195		17,826		19,550
Change in fair value of interest rate derivatives	10		—		355		—
Amortization of swap fair value at designation	2,935		190		8,442		3,992
Total non-cash interest expense	$	13,401	$	3,473	$	33,439	$	23,744

Note: Refer to "Glossary and Reconciliations" for metric definitions and reconciliations of non-GAAP financial measures.

Q3 2018 Earnings Release and Supplemental Information — page 38

Invitation Homes Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - November 5, 2018

Attached files

Invitation Homes Inc. Reports