Earnings Review and Free Research Report: Invitation Homes’ Revenue Gained 5.1%; Adjusted FFO Soared 21.5%
Research Desk Line-up: Maui Land & Pineapple Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 23, 2017 /Pro-Trader Daily has just published a free post-earnings coverage on Invitation Homes Inc. (NYSE: INVH), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=INVH, following the Company's posting of its second quarter fiscal 2017 operating results on August 10, 2017. The Company's revenue numbers beat market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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For Q2 2017, Invitation Homes' total revenues increased 5.1% to $242.22 million compared to revenue of $230.50 million in Q2 2016. Revenue growth was driven by an increase in average rental rate per home that more than offset a slight decline in home count. The Company's total property operating and maintenance expenses increased 1.7% to $93 million. Invitation Homes' revenue exceeded estimates of $240.58 million.
Invitation Homes' net income for the three months ended June 30, 2017, was $5.53 million compared to net loss of $19.67 million in Q2 2016. The turnaround was attributed to higher revenues, lower interest expense, and an increase in net gain on sale of property, partially offset by higher total operating expenses.
Invitation Homes' core funds from operations (FFO) for the three months ended June 30, 2017, increased 17.9% to $77.2 million, primarily due to an increase in net operating income (NOI), driven by higher revenues. The Company's adjusted funds from operations (AFFO) for the three months ended June 30, 2017, increased 21.5% to $65.6 million.
For the total portfolio, Invitation Homes' occupancy decreased to 95.0% in Q2 2017 from 95.1% in Q2 2016, and increased to 95.0% in YTD 2017 from 94.8% in YTD 2016.
For the reported quarter, Same Store revenue growth of 4.6% was driven by a 4.3% increase in average monthly rent and a 22.4% increase in other property income, partially offset by a 0.5% decline in average occupancy to 95.9%.
Invitation Homes' Same Store expenses increased 1.9% on a y-o-y basis for Q2 2017, driven primarily by 11.3% higher property taxes. The Company noted that California property tax reassessments related to the initial public offering (IPO) became estimable in Q2 2017, and the incremental taxes accrued in H1 2017 for expected reassessments were booked entirely in Q2 2017. Excluding the impact of property taxes attributable to Q1 2017 that were booked in Q2 2017, Same Store property taxes would have increased by 9.1% in the reported quarter, and Same Store expenses would have increased by 1.0%.
Invitation Homes' Same Store core NOI margin increased to 62.9% in Q2 2017 from 61.5% in Q2 2016. Excluding the impact of property taxes attributable to Q1 2017, Same Store core NOI margin in the reported quarter would have been 63.2%. The Company's Same Store blended net effective rental rate growth was 5.1% on leases signed in Q2 2017.
Investment Management Activity
In Q2 2017, Invitation Homes' acquired 229 homes for $64.1 million, including estimated renovation cost, and sold 422 homes for gross proceeds of $58.7 million, resulting in total portfolio home count at June 30, 2017, of 47,725 homes. The Company's dispositions in the reported quarter resulted in a gain on sale, net of tax, of approximately $10.2 million. On a year-to-date basis, Invitation Homes acquired 350 homes for $95.3 million, including estimated renovation cost, and sold 923 homes for gross proceeds of $136.4 million. Dispositions year-to-date resulted in a gain on sale, net of tax, of approximately $24.5 million.
Balance Sheet and Capital Markets Activity
At June 30, 2017, Invitation Homes had $1.16 billion in availability through a combination of unrestricted cash and undrawn capacity on its credit facility. The Company's total indebtedness at June 30, 2017, was $5.68 billion, consisting of $4.18 billion of secured debt and $1.50 billion of unsecured debt.
During the reported quarter, Invitation Homes closed a ten-year fixed rate securitization loan with a total principal amount of $1.00 billion. Net proceeds of approximately $930 million were used to repay the remaining outstanding balance of the IH1 2014-1 securitization and to voluntarily prepay $510 million of the IH1 2014-3 securitization.
On Tuesday, August 22, 2017, the stock closed the trading session at $23.15, slightly slipping 0.64% from its previous closing price of $23.30. A total volume of 2.01 million shares have exchanged hands, which was higher than the 3-month average volume of 1.30 million shares. Invitation Homes' stock price advanced 6.34% in the last one month, 7.37% in the past three months, and 7.32% in the previous six months. Furthermore, since the start of the year, shares of the Company have rallied 15.75%. The stock has a dividend yield of 1.38% and currently has a market cap of $7.27 billion.
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