Post Earnings Coverage as Invitation Homes Reported Robust Results; Revenue Gained 6.3% and AFFO Surged 30%

Upcoming AWS Coverage on Brookfield Property Partners Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 31, 2017 / Active Wall St. announces its post-earnings coverage on Invitation Homes Inc. (NYSE: INVH). The Company released its first quarter fiscal 2017 financial results on May 11, 2017. The REIT surpassed revenue estimates. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Invitation Homes’ competitors within the Real Estate Development space, Brookfield Property Partners L.P. (NYSE: BPY), announced on May 05, 2017, its financial results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Brookfield Property Partners in the coming days.

Today, AWS is promoting its earnings coverage on INVH; touching on BPY. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended March 31, 2017, Invitation Homes’ total revenues increased 6.3% to $238.75 million compared to revenue of $224.50 million in Q1 2016. Revenue growth was driven by an increase in average rental rate per home and higher occupancy. The Company’s revenue numbers surpassed analysts’ consensus of $238.10 million.

Invitation Homes’ net loss for Q1 2017 was $42.4 million, an increase of $32.4 million compared to net loss of 9.98 million the prior year’s corresponding quarter. The increase in net loss was primarily due to a $40.0 million increase in share-based compensation related to the Company’s initial public offering (IPO) and $7.6 million of other non-recurring general and administrative cost associated with the IPO. Exclusive of these two items, results improved by $15.3 million from the prior year, primarily due to higher revenues.

For Q1 2017, Invitation Homes’ Core FFO increased 21.6% to $78.20 million compared to $64.30 million in Q1 206, primarily due to an increase in NOI, driven by higher revenues. Lower interest expense, net of non-cash interest, also contributed to the increase in Core FFO. The Company’s AFFO for the reported quarter surged 30.4% to $68.97 million compared to $52.89 million in the prior year’s same quarter, primarily driven by the increase in Core FFO, as well as a 19.1% decline in recurring CapEx.

Operating Results

During Q1 2017, Invitation Homes’ Same Store revenue growth of 4.7% was driven by a 4.5% increase in average monthly rent and a 22.3% increase in other property income, partially offset by a 0.6% decline in average occupancy to 95.8%. The Company’s Same Store expenses increased 3.0% on a y-o-y basis, driven primarily by 7.1% higher property taxes. Personnel, leasing & marketing, and insurance costs were lower on a y-o-y basis by 15.9%, 17.3%, and 10.7%, respectively.

During Q1 2017, for Invitation Homes’ Same Store portfolio of 43,224 homes, Same Store NOI increased 5.7% on a y-o-y basis on Same Store revenue growth of 4.7% and Same Store expense growth of 3.0%. As a result, Core NOI margin increased to 64.3% in the reported quarter compared to 63.4% in the year ago same period.

Investment Management Activity

In Q1 2017, Invitation Homes acquired 121 homes for $31.2 million, including estimated renovation cost, and sold 501 homes for gross proceeds of $77.7 million, resulting in total portfolio home count at March 31, 2017, of 47,918 homes. The Company’s dispositions in the reported quarter resulted in a gain on sale, net of tax of approximately $14.3 million.

Balance Sheet and Capital Markets Activity

At March 31, 2017, Invitation Homes had $1.19 billion in availability through a combination of unrestricted cash and undrawn capacity on its credit facility. The Company’s total indebtedness at March 31, 2017, was $5.73 billion, consisting of $4.23 billion of secured debt and $1.50 billion of unsecured debt.

During the reported quarter, Invitation Homes completed an initial public offering of 88,550,000 shares of its common stock at a price of $20.00 per share, resulting in net proceeds of $1.67 billion after deducting underwriting discounts and offering expenses payable by the Company. In addition, Invitation Homes entered into a $1,500 million Term Loan Facility with a five-year term and a $1.00 billion revolving credit facility. With proceeds from the initial public offering and the Term Loan Facility, and cash on hand, the Company repaid $3.34 billion of debt.

Furthermore, Invitation Homes entered into three interest rate swap agreements during Q1 2017 with a combined notional amount of $2.02 billion. Together with two interest rate swap agreements entered into during Q4 2016, the aggregate amount of debt the Company has swapped from floating rate to fixed rate was $3.52 billion.

Stock Performance

At the closing bell, on Tuesday, May 30, 2017, Invitation Homes’ stock was slightly up 0.75%, ending the trading session at $21.36. A total volume of 1.47 million shares were traded at the end of the day, which was higher than the 3-month average volume of 1.24 million shares. The stock gained 6.80% since the start of the year. The stock has a dividend yield of 1.12% and currently has a market cap of $6.63 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 464526