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The surge in **Management fee revenues** in Q1 2024 was primarily driven by two factors. First, Invitation Homes initiated management of a **14,000-home portfolio** in mid-January 2024, significantly expanding the base for revenue generation.  **[INVH_3382029_4]**  Second, there was a substantial increase in the number of homes managed—from **3,570 homes** in Q1 2023 to **18,122 homes** in Q1 2024, including additional growth from unconsolidated joint ventures.  **[0001687229-24-000028_invh-20240331.htm:19]** 

Why did Management fee revenues surge in Q1 2024?

The sharp drop in net income in Q2 2024 was primarily due to several factors. **Legal accruals** had a major impact, including a **$59.5 million accrual** for legal matters—with a **$22 million settlement** for a California dispute and a **$37.5 million accrual** related to a Federal Trade Commission inquiry. Additionally, there were **increased operating expenses**, including a **9.5% rise** in property operating and maintenance costs and a **7.1% increase** in same-store core operating expenses. The quarter also saw **higher depreciation and amortization expenses** as well as a rise in **interest expense** from **$78,625 thousand** in Q2 2023 to **$90,007 thousand** in Q2 2024, all contributing to the significant decline.  **[0001687229-24-000044_q22024supplemental.htm:34]** **[0001687229-24-000044_q22024supplemental.htm:8]** **[0001687229-24-000044_q22024supplemental.htm:0]** 

What caused the sharp drop in net income in Q2 2024?

Casualty losses spiked in Q3 2024 mainly due to **hurricane-related damages** from Hurricanes Beryl, Debby, and Helene causing approximately **$14,000 thousand** in damages (net of insurance recoveries).  **[0001687229-24-000074_invh-20240930.htm:45]** **[0001687229-24-000070_q32024supplemental.htm:0]**  In addition, the **net casualty losses** for repairs from storm activity reached about **$20,600 thousand**  **[0001687229-24-000074_invh-20240930.htm:60]**  and there was an increase in **impairment losses** on single-family residential properties (rising from **$83 thousand** in Q3 2023 to **$270 thousand** in Q3 2024).  **[0001687229-24-000074_invh-20240930.htm:16]** **[0001687229-24-000074_invh-20240930.htm:60]** 

Why did casualty losses spike in Q3 2024?

The increase in property management expense in Q1 2024 was driven by several factors. **First**, there was an expansion of the property and asset management platform, requiring **increased personnel costs** to effectively manage **18,122 homes under management as of March 31, 2024**.  **[0001687229-24-000028_invh-20240331.htm:53]**  **Second**, the company launched third-party management services in January 2024, adding over **14,000 single-family homes** to its portfolio, which required additional resources.  **[0001687229-24-000025_q12024supplemental.htm:2]** **[0001687229-24-000025_q12024supplemental.htm:0]**  **Finally**, although there was a slight decrease in share-based compensation from **$1,960 thousand in Q1 2023** to **$1,598 thousand in Q1 2024**, this element still contributed to the overall expense.  **[0001687229-24-000025_q12024supplemental.htm:17]** 

What factors drove the increase in property management expense in Q1 2024?

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The spike in **cash and cash equivalents** in Q3 2024 was primarily driven by a **significant reduction in cash used for investing activities**. In 2024, investing cash outflows decreased from **$769,596 thousand to $492,697 thousand**, largely due to fewer home acquisitions (1,591 homes in 2024 versus 2,626 homes in 2023, cutting acquisition spend by **$363.8 million**) and a decline in the proceeds from home sales. Although there were also changes in operating and financing activities, these adjustments were secondary to the cash flow benefits gained through more conservative investing activity.  **[0001687229-24-000070_q32024supplemental.htm:7]** **[0001687229-24-000074_invh-20240930.htm:70]** 

Why did Cash and Cash Equivalents spike in Q3 2024?

The sharp drop in Term Loan Facilities in Q3 2024 was driven by a **repayment of the 2020 Term Loan Facility**. Invitation Homes Inc. used proceeds from its new **2024 Term Loan Facility**—along with a borrowing on the Revolving Facility and excess cash—to fully repay the old facility. Additionally, the net effect was further influenced by the **amortization of deferred financing costs** during the period.  **[0001687229-24-000074_invh-20240930.htm:28]** **[0001687229-24-000074_invh-20240930.htm:29]** **[0001687229-24-000074_invh-20240930.htm:65]** **[0001687229-24-000070_q32024supplemental.htm:35]** 

What drove the sharp drop in Term Loan Facilities in Q3 2024?

The increase in **Unsecured Notes, net** in Q3 2024 was primarily driven by two factors. First, the company issued **4.88% Senior Notes** totaling **$500,000** on **September 26, 2024** as part of a public offering.  **[0001687229-24-000074_invh-20240930.htm:27]**  Second, the firm engaged in refinancing activities by refinancing its 2020 Credit Facility and issuing **$494.3 million** of unsecured notes (net of discount) to repay the existing credit facility, cover **$54.3 million** in financing costs, and bolster cash reserves for general corporate purposes.  **[0001687229-24-000074_invh-20240930.htm:71]** 

What factors contributed to the rise in Unsecured Notes in Q3 2024?

The introduction of the Revolving Facility in Q3 2024 was part of a broader debt restructuring effort. The company replaced its previous credit facility with a new **$3.5 billion senior unsecured credit facility**, which featured a **$1.75 billion revolving line of credit** and a **$1.75 billion term loan facility**. The new Revolving Facility was established when the company borrowed **$750 million** at the date of effectiveness of the new facility, and the proceeds—along with funds from the term loan facility and available cash—were used to repay the existing **2020 Term Loan Facility** and manage transaction costs.  **[0001687229-24-000074_invh-20240930.htm:28]** **[0001687229-24-000074_invh-20240930.htm:65]** **[0001687229-24-000070_q32024supplemental.htm:3]** 

Why was a Revolving Facility introduced in Q3 2024?

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Rental revenues and other property income (USD, thousands)

Management fee revenues (USD, thousands)

Total revenues (USD, thousands)

Property operating and maintenance (USD, thousands)

Property management expense (USD, thousands)

General and administrative (USD, thousands)

Interest expense (USD, thousands)

Depreciation and amortization (USD, thousands)

Casualty losses, impairment, and other (USD, thousands)

Total expenses (USD, thousands)

Gains (losses) on investments in equity and other securities, net (USD, thousands)

Other, net (USD, thousands)

Gain on sale of property, net of tax (USD, thousands)

Losses from investments in unconsolidated joint ventures (USD, thousands)

Net income (USD, thousands)

Net income attributable to non-controlling interests (USD, thousands)

Net income attributable to common stockholders (USD, thousands)

Net income available to participating securities (USD, thousands)

Net income available to common stockholders — basic and diluted (USD, thousands)

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Investments in single-family residential properties, net (USD, thousands)

Cash and cash equivalents (USD, thousands)

Restricted cash (USD, thousands)

Goodwill (USD, thousands)

Investments in unconsolidated joint ventures (USD, thousands)

Other assets, net (USD, thousands)

Total assets (USD, thousands)

Unsecured notes, net (USD, thousands)

Term loan facilities, net (USD, thousands)

Revolving facility (USD, thousands)

Accounts payable and accrued expenses (USD, thousands)

Resident security deposits (USD, thousands)

Other liabilities (USD, thousands)

Total liabilities (USD, thousands)

Common stock (USD, thousands)

Additional paid-in capital (USD, thousands)

Accumulated deficit (USD, thousands)

Accumulated other comprehensive income (USD, thousands)

Total stockholders’ equity (USD, thousands)

Non-controlling interests (USD, thousands)

Total equity (USD, thousands)

Total liabilities and equity (USD, thousands)

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Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

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c079fa1df1fa630956efdef63220b7f8fc1b7acfc4511b64825da9ef254755cd

Rental revenues and other property

Management fee revenues

- Rental Revenues

- Other Property Income

Total Revenue

3619a8aacdb8eec865809509d560e6ce63c44f7cfdebe353c27ef6a77b989e7f

Invitation Homes (INVH)

Financials