10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended	June 30, 2017
	OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to
	Commission File Number 001-38004
	Invitation Homes Inc. (Exact name of registrant as specified in governing instruments)
	Maryland (State or other jurisdiction of incorporation or organization)		90-0939055 (I.R.S. Employer Identification No.)
	1717 Main Street, Suite 2000 Dallas, Texas 75201 (Address of principal executive offices)(Zip Code)
	(972) 421-3600 (Registrant’s telephone number, including area code)
	N/A (Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO o

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). YES x NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o		Accelerated filer	o
Non-accelerated filer	x	(Do not check if a smaller reporting company)	Smaller reporting company	o
			Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO x

As of August 9, 2017, there were 311,354,290 shares of common stock, par value $0.01 per share, outstanding.

INVITATION HOMES INC.

			Page
PART I
Item	1.	Financial Statements	6
Item	2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item	3.	Quantitative and Qualitative Disclosures About Market Risk	65
Item	4.	Controls and Procedures	66
PART II
Item	1.	Legal Proceedings	67
Item	1A.	Risk Factors	67
Item	2.	Unregistered Sales of Equity Securities and Use of Proceeds	67
Item	3.	Defaults Upon Senior Securities	67
Item	4.	Mine Safety Disclosures	67
Item	5.	Other Information	67
Item	6.	Exhibits	67
Signatures

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q 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 our expectations regarding the performance of our business, our financial results, our 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 inherent to the single-family rental industry sector and our business model, macroeconomic factors beyond our control, competition in identifying and acquiring our properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) and insurance costs, our dependence on third parties for key services, risks related to evaluation of properties, poor resident selection and defaults and non-renewals by our residents, performance of our information technology systems, and risks related to our 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. We believe these factors include but are not limited to those described under Part I. Item 1A. “Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2016 (the “Annual Report on Form 10-K”) as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (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 the Annual Report on Form 10-K and in our other periodic filings. The forward-looking statements speak only as of the date made, 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.

3

DEFINED TERMS

Prior to the completion of our initial public offering, our business was owned by six holding entities: Invitation Homes L.P., Preeminent Holdings Inc., Invitation Homes 3 L.P., Invitation Homes 4 L.P., Invitation Homes 5 L.P. and Invitation Homes 6 L.P. We refer to these six holding entities collectively as the “IH Holding Entities.” Unless the context suggests otherwise, references to “IH1,” “IH2,” “IH3,” “IH4,” “IH5” and “IH6” refer to Invitation Homes L.P., Preeminent Holdings Inc., Invitation Homes 3 L.P., Invitation Homes 4 L.P., Invitation Homes 5 L.P. and Invitation Homes 6 L.P., respectively, in each case including any wholly owned subsidiaries, if applicable. The IH Holding Entities were under the common control of Blackstone Real Estate Partners VII L.P., an investment fund sponsored by The Blackstone Group L.P., and its general partner and certain affiliated funds and investment vehicles. Investment funds and vehicles associated with or designated by The Blackstone Group L.P. are referred to herein as “Blackstone” or “our Sponsor.” We refer to Blackstone, together with our management and other equity holders, collectively as our “Pre-IPO Owners.” Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to “Invitation Homes,” the “Company,” “we,” “our” and “us” refer (1) prior to the consummation of the reorganization transactions described in Part I. Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (the “Pre-IPO Transactions”), to the combined IH Holding Entities and their consolidated subsidiaries, including Invitation Homes Operating Partnership LP (our “Operating Partnership”) and (2) after the consummation of the Pre-IPO Transactions, to Invitation Homes Inc. and its consolidated subsidiaries (including the Operating Partnership and the IH Holding Entities).

In this Quarterly Report on Form 10-Q:

• “average monthly rent” represents the average of the contracted monthly rent for occupied properties in an identified population of homes for the relevant period and reflects rent concessions amortized over the life of the related lease;

• “average occupancy” for an identified population of homes represents (i) the number of days that the homes available for lease in such population were occupied, divided by (ii) the total number of available days in the measurement period for the homes in that population;

• “days to re-resident” for an individual home represents the number of days a home is unoccupied between residents, calculated as the number of days between (i) the date the prior resident moves out of a home, and (ii) the date the next resident is granted access to the same home, which is deemed to be the earlier of (x) the next resident’s contractual lease start date and (y) the next resident’s move-in date;

• “in-fill” refers to markets, MSAs, submarkets, neighborhoods or other geographic areas that are typified by significant population densities and low availability of land suitable for development into competitive properties, resulting in limited opportunities for new construction;

• “Metropolitan Statistical Area” or “MSA” is defined by the U.S. Office of Management and Budget as a region associated with at least one urbanized area that has a population of at least 50,000 and comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county or counties as measured through commuting;

• “net effective rental rate growth” for any home represents the difference between the monthly rent from an expiring lease and the monthly rent from the next lease, in each case, net of any amortized concessions. 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;

• “Northern California” includes Modesto, CA, Napa, CA, Oakland-Fremont-Hayward, CA, Sacramento-Arden-Arcade-Roseville, CA, San Jose-Sunnyvale-Santa Clara, CA, Stockton-Lodi, CA, Vallejo-Fairfield, CA and Yuba City, CA;

• “PSF” means per square foot;

• “Same Store” or “Same Store portfolio” includes, for a given reporting period, homes that have been stabilized (defined as homes that have (i) completed an upfront renovation and (ii) entered into at least one post-renovation Invitation Homes lease) for at least 90 days prior to the first day of the prior-year measurement period and excludes homes that have been sold and homes that have been designated for sale but have not yet entered into a written sale agreement during such reporting period. Same Store portfolios are established as of January 1st of each calendar year.

4

Therefore, any home included in the Same Store portfolio will have satisfied the conditions described in clauses (i) and (ii) above prior to October 3rd of the year prior to the first year of the comparison period. 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;

• “South Florida” includes Fort Lauderdale-Pompano Beach-Deerfield Beach, FL, Key West, FL, Miami-Miami Beach-Kendall, FL and West Palm Beach-Boca Raton-Delray Beach, FL;

• “Southern California” includes Anaheim-Santa Ana-Irvine, CA, Los Angeles-Long Beach-Glendale, CA, Oxnard-Thousand Oaks-Ventura, CA, Riverside-San Bernardino-Ontario, CA and San Diego-Carlsbad-San Marcos, CA;

• “total homes” or “total portfolio” refers to the total number of homes we own, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated. Unless the context otherwise requires, all measures in this prospectus are presented on a total portfolio basis;

• “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. To the extent the measurement period shown is less than 12 months, the turnover rate will be reflected on an annualized basis; and

• “Western United States” includes our Southern California, Northern California, Seattle, Phoenix and Las Vegas markets.

5

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

INVITATION HOMES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except shares and per share data)

	June 30, 2017			December 31, 2016
Assets:	(unaudited)
Investments in single-family residential properties:
Land	$	2,716,934		$	2,703,388
Building and improvements	7,116,587			7,091,457
	9,833,521			9,794,845
Less: accumulated depreciation	(917,961		)	(792,330		)
Investments in single-family residential properties, net	8,915,560			9,002,515
Cash and cash equivalents	158,934			198,119
Restricted cash	138,264			222,092
Other assets, net	306,568			309,625
Total assets	$	9,519,326		$	9,732,351
Liabilities:
Mortgage loans, net	$	4,158,666		$	5,254,738
Term loan facility, net	1,486,529			—
Credit facilities, net	—			2,315,541
Accounts payable and accrued expenses	110,919			88,052
Resident security deposits	88,781			86,513
Other liabilities	30,460			30,084
Total liabilities	5,875,355			7,774,928
Equity:
Shareholders' equity
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding at June 30, 2017	—			—
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 310,376,634 outstanding at June 30, 2017	3,104			—
Additional paid-in capital	3,675,094			—
Accumulated deficit	(38,799		)	—
Accumulated other comprehensive income	4,572			—
Total shareholders' equity	3,643,971			—
Combined equity	—			1,957,423
Total equity	3,643,971			1,957,423
Total liabilities and equity	$	9,519,326		$	9,732,351

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

INVITATION HOMES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except shares and per share data)

(unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Revenues:
Rental revenues	$	228,504		$	219,354		$	454,600		$	433,677
Other property income	13,712			11,142			26,366			21,321
Total revenues	242,216			230,496			480,966			454,998
Operating expenses:
Property operating and maintenance	92,840			91,281			181,008			176,248
Property management expense	9,135			7,530			20,584			14,923
General and administrative	18,426			15,408			76,692			30,768
Depreciation and amortization	67,515			66,079			135,092			131,781
Impairment and other	706			546			1,910			363
Total operating expenses	188,622			180,844			415,286			354,083
Operating income	53,594			49,652			65,680			100,915
Other income (expenses):
Interest expense	(57,358		)	(70,523		)	(125,930		)	(140,800		)
Other, net	(869		)	185			(1,095		)	32
Total other income (expenses)	(58,227		)	(70,338		)	(127,025		)	(140,768		)
Loss from continuing operations	(4,633		)	(20,686		)	(61,345		)	(39,853		)
Gain on sale of property, net of tax	10,162			1,020			24,483			10,212
Net income (loss)	$	5,529		$	(19,666	)	$	(36,862	)	$	(29,641	)
	Three Months Ended June 30, 2017						February 1, 2017 through June 30, 2017
Net income (loss) available to common shareholders — basic and diluted (Note 12)	$	5,420					$	(20,092	)
Weighted average common shares outstanding — basic	311,771,221						311,723,463
Weighted average common shares outstanding — diluted	312,271,578						311,723,463
Net income (loss) per common share — basic	$	0.02					$	(0.06	)
Net income (loss) per common share — diluted	$	0.02					$	(0.06	)
Dividends declared per common share	$	0.06					$	0.06

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

INVITATION HOMES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Net income (loss)	$	5,529		$	(19,666	)	$	(36,862	)	$	(29,641	)
Other comprehensive income (loss):
Unrealized losses on interest rate swaps	(14,759		)	—			(4,198		)	—
Losses from interest rate swaps reclassified into earnings from accumulated other comprehensive income	6,059			—			8,770			—
Other comprehensive (loss) income	(8,700		)	—			4,572			—
Comprehensive loss	$	(3,171	)	$	(19,666	)	$	(32,290	)	$	(29,641	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

INVITATION HOMES INC.

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

For the Six Months Ended June 30, 2017

(in thousands, except share information)

(unaudited)

				Common Stock
	Combined Equity			Number of Shares	Amount		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income		Total Equity
Balance as of December 31, 2016	$	1,957,423		—	$	—	$	—		$	—		$	—	$	1,957,423
Net loss	(16,879		)	—	—		—			—			—		(16,879		)
Redemption of Series A Preferred Stock	(1,153		)	—	—		—			—			—		(1,153		)
Distribution of Class B notes receivable	(19,686		)	—	—		—			—			—		(19,686		)
Cancelation/distribution of Class B notes receivable	19,686			—	—		—			—			—		19,686
Share-based compensation expense	12,001			—	—		—			—			—		12,001
Accrued interest on Class B notes	15			—	—		—			—			—		15
Balance as of January 31, 2017	1,951,407			—	—		—			—			—		1,951,407
Pre-IPO Transactions (see Note 1)	(1,951,407		)	221,826,634	2,218		1,949,189			—			—		—
Issuance of common stock — IPO	—			88,550,000	886		1,691,172			—			—		1,692,058
Offering costs	—			—	—		(5,726		)	—			—		(5,726		)
Net loss	—			—	—		—			(19,983		)	—		(19,983		)
Dividends declared	—			—	—		—			(18,816		)	—		(18,816		)
Share-based compensation expense	—			—	—		40,459			—			—		40,459
Total other comprehensive income	—			—	—		—			—			4,572		4,572
Balance as of June 30, 2017	$	—		310,376,634	$	3,104	$	3,675,094		$	(38,799	)	$	4,572	$	3,643,971

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

INVITATION HOMES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	For the Six Months Ended
	June 30,
	2017			2016
Operating Activities:
Net loss	$	(36,862	)	$	(29,641	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	135,092			131,781
Share-based compensation expense	52,460			8,312
Amortization of deferred leasing costs	6,226			7,212
Amortization of deferred financing costs	16,355			26,981
Amortization of discount on mortgage loans	114			2,835
Provisions for impairment	1,132			519
Gain on sale of property, net of tax	(24,483		)	(10,212		)
Paid in kind interest on warehouse loan	—			995
Change in fair value of derivative instruments	3,802			—
Other noncash amounts included in net loss	(922		)	(789		)
Change in operating assets and liabilities:
Restricted cash related to security deposits	(2,632		)	(4,095		)
Other assets, net	(8,564		)	(13,837		)
Accounts payable and accrued expenses	24,054			30,976
Resident security deposits	2,268			4,112
Other liabilities	(814		)	976
Net cash provided by operating activities	167,226			156,125
Investing Activities:
Changes in amounts deposited and held by others	89			2,207
Acquisition of single-family residential properties	(84,632		)	(205,932		)
Initial renovations to single-family residential properties	(13,026		)	(34,464		)
Other capital expenditures for single-family residential properties	(21,133		)	(21,308		)
Corporate capital expenditures	(1,494		)	(2,510		)
Proceeds from sale of residential properties	129,239			83,940
Purchases of investments in debt securities	(51,920		)	(16,036		)
Repayment proceeds from retained debt securities	30,916			—
Changes in restricted cash	86,460			(12,346		)
Net cash provided by (used in) investing activities	74,499			(206,449		)
Financing Activities:
Contributions	—			138,002
Dividends paid	(18,816		)	—
Redemption of Series A preferred stock	(1,153		)	—
Proceeds from initial offering, net of underwriting discounts	1,692,058			—
Offering costs paid	(2,757		)	—

10

INVITATION HOMES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(in thousands)

(unaudited)

	For the Six Months Ended
	June 30,
	2017			2016
Proceeds from credit facilities	—			184,021
Payments on credit facilities	(2,321,585		)	(111,661		)
Proceeds from mortgage loans	996,420			—
Payments on mortgage loans	(2,083,012		)	(30,738		)
Proceeds from term loan facility	1,500,000			—
Payments on warehouse loans	—			(95,895		)
Deferred financing costs paid	(42,065		)	(8,669		)
Net cash (used in) provided by financing activities	(280,910		)	75,060
Change in cash and cash equivalents	(39,185		)	24,736
Cash and cash equivalents, beginning of period	198,119			274,818
Cash and cash equivalents, end of period	$	158,934		$	299,554
Supplemental cash flow disclosures:
Interest paid, net of amounts capitalized	$	110,561		$	110,268
Cash paid for income taxes	1,987			—
Noncash investing and financing activities:
Accrued renovation improvements at period end	$	3,868		$	8,037
Accrued residential property capital improvements at period end	3,754			3,505
Transfer of residential property, net to other asset, net for held for sale assets	41,278			3,669
Reclassification of offering costs from other assets to additional paid-in capital	2,969			—
Change in other comprehensive income from cash flow hedges	4,572			—

The accompanying notes are an integral part of these condensed consolidated financial statements.

11

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Note 1—Organization and Formation

Invitation Homes Inc. (“INVH”) was formed for the purpose of owning, renovating, leasing, and operating single-family residential properties. On February 6, 2017, INVH completed an initial public offering (“IPO”) of 88,550,000 shares of common stock at a price to the public of $20.00 per share. An additional 221,826,634 shares of common stock were issued to the Pre-IPO Owners (as defined below).

Prior to the IPO, we conducted our business through a combination of entities formed by Blackstone Real Estate Partners VII L.P. (“BREP VII”), an investment fund sponsored by The Blackstone Group L.P., along with BREP VII’s affiliated side-by-side funds and co-investment vehicles (“BREP VII and Affiliates”). The first Invitation Homes partnership was formed on June 12, 2012, through the establishment of Invitation Homes L.P. (“IH1”) and its wholly-owned subsidiary, THR Property Management L.P. (the “Manager”). Preeminent Holdings, Inc. (“IH2”) was created on February 14, 2013, Invitation Homes 3 L.P. (“IH3”) on August 8, 2013, Invitation Homes 4 L.P. (“IH4”) on January 10, 2014, Invitation Homes 5 L.P. (“IH5”) on August 22, 2014, and Invitation Homes 6 L.P. (“IH6”) on June 15, 2015 (collectively with IH1, the “Invitation Homes Partnerships”). Through the Manager, we provide all management and other administrative services with respect to the properties we own. The collective owners of the Invitation Homes Partnerships are referred to as the “Pre-IPO Owners.”

Invitation Homes Operating Partnership LP (the “Operating Partnership”) and its general partner, Invitation Homes OP GP LLC (the “OP General Partner”), were formed by one of our Pre-IPO Owners on December 14, 2016. The Operating Partnership began negotiating and entering into certain debt and hedge instruments upon its inception in anticipation of our IPO.

Prior to the IPO, the Invitation Homes Partnerships and the Operating Partnership were under the common control of BREP VII and Affiliates. BREP VII and Affiliates had the ability to control each of the Invitation Homes Partnerships and manage and operate the Invitation Homes Partnerships through the Manager and a common board of directors. As such prior to the IPO, our historical financial statements include assets, liabilities and results of operations of the Operating Partnership and the Invitation Homes Partnerships and their consolidated subsidiaries on a combined and consolidated basis.

As a result of the Pre-IPO Transactions described below, IH2 was effectively merged into INVH (and the assets and liabilities of IH2 were contributed to the Operating Partnership), and the remaining Invitation Homes Partnerships became wholly owned subsidiaries of INVH through the Operating Partnership.

On October 4, 2016, INVH was incorporated in the State of Delaware and was capitalized as of that date by an investment from one of our Pre-IPO Owners. Since inception, and through the date of the Pre-IPO Transactions (as described below), INVH did not engage in any business or activity. On February 6, 2017, INVH changed its jurisdiction of incorporation to Maryland. The Pre-IPO Transactions also included amendments to the INVH charter which provide for the issuance of up to 9,000,000,000 shares of common stock and 900,000,000 shares of preferred stock, $0.01 par value per share.

Our organizational structure includes several wholly owned subsidiaries that were formed to facilitate our financing arrangements (the “Borrower Entities”). These Borrower Entities are used to align the ownership of our single-family residential properties with individual debt instruments. Collateral for the individual debt instruments is in the form of equity interests in the Borrower Entities or in pools of single-family residential properties owned either directly by the Borrower Entities or indirectly by their wholly owned subsidiaries (see Note 6).

References to “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer, collectively, to INVH, IH1, IH2, IH3, IH4, IH5, IH6, the Manager, and the Operating Partnership.

12

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Pre-IPO Transactions

On January 31, 2017, we effected certain transactions (the “Pre-IPO Transactions”) that resulted in the Operating Partnership holding, directly or indirectly, all of the assets, liabilities, and results of operations of the Invitation Homes Partnerships, including the full portfolio of homes held by the Invitation Homes Partnerships. As a result of the Pre-IPO Transactions, the Operating Partnership is wholly owned by INVH directly and through its wholly owned subsidiary, the OP General Partner. More specifically:

• INVH acquired all of the assets, liabilities, and operations held directly or indirectly by IH2 through certain mergers and related transactions as follows:

• IH2 Property Holdings Inc., a parent entity of IH2, merged with and into INVH, with INVH as the entity surviving the merger (the “IH2 Property Holdings Merger”), and the issued and outstanding shares of IH2 Property Holdings Inc., all of which were held by certain of the Pre-IPO Owners, were converted into newly issued shares of common stock of INVH; and

• following the IH2 Property Holdings Merger, IH2 merged with and into INVH, with INVH as the entity surviving the merger (the “IH2 Merger”). In the IH2 Merger, all of the shares of common stock of IH2 issued and outstanding immediately prior to such merger, other than the shares held by INVH, were converted into shares of newly issued common stock of INVH. As a result of the IH2 Merger, INVH holds all of the assets and operations held directly or indirectly by IH2 prior to such merger;

• prior to the IH2 Merger, our Pre-IPO Owners contributed to INVH their interests in each of the other Invitation Homes Partnerships (other than IH2) in exchange for newly-issued shares of INVH; and

• INVH contributed to the Operating Partnership all of the interests in the Invitation Homes Partnerships (other than IH2, the assets, liabilities and operations of which were contributed to the Operating Partnership).

The Pre-IPO Transactions were accounted for as a reorganization of entities under common control utilizing historical cost basis.

Note 2—Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our audited combined and consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Subsequent to the date of the Pre-IPO Transactions, these condensed consolidated financial statements include the accounts of INVH and its wholly owned subsidiaries. Prior to the date of the Pre-IPO Transactions, these combined and consolidated financial statements include the combined accounts of the Operating Partnership and the Invitation Homes Partnerships and their wholly owned subsidiaries.

All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in these condensed consolidated financial statements. Operating results for the six months endedJune 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.

We consolidate entities when we own, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. We consolidate variable interest entities (“VIEs”) in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation, if we are the primary beneficiary of the VIE as determined by our power to direct the VIE’s activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of

13

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.

Adoption of New Accounting Standards

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted only for transactions that occurred before the issuance date of the guidance and has not been previously reported in issued financial statements. Effective January 1, 2017, we adopted ASU 2017-01, and the adoption of this standard had no material impact on our condensed consolidated financial statements for any period presented.

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Effective January 1, 2017, we adopted ASU 2016-09, and the adoption of this standard had no impact on our condensed consolidated financial statements for any period presented.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates.

Accounting Policies

There have been no changes to our significant accounting policies that have had a material impact on our condensed consolidated financial statements and related notes, compared to those policies disclosed in our audited combined and consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 other than as disclosed below.

Investments in Single-Family Residential Properties

Upon acquisition, we evaluate our acquired single-family residential properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Upon adoption of ASU 2017-01, our purchases of homes are treated as acquisitions and are recorded at their purchase price which is allocated between land, building and improvements, and in-place lease intangibles (when a tenant is in place at the acquisition date) based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, bidding service and title fees, payments made to cure tax, utility, homeowners’ association (“HOA”), and other mechanic’s and miscellaneous liens, as well as other closing costs. The fair values of acquired in-place lease intangibles, if any, are based on the costs to execute similar leases, including commissions and other related costs. The origination value of in-place lease intangibles also includes an estimate of lost rent revenue at in-place rental rates during the estimated time required to lease the property. The in-place lease intangibles are amortized over the life of the leases and are recorded in other assets, net on our condensed consolidated balance sheets.

14

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Prior to our adoption of ASU 2017-01 effective January 1, 2017, acquisition costs for transactions accounted for as business combinations were expensed in the period in which they were incurred and were reflected in other expenses in the accompanying condensed consolidated statements of operations.

Earnings per Share

We use the two-class method to compute basic and diluted earnings (loss) per common share (“EPS”) because certain of our restricted stock units and restricted stock awards (see Share-Based Compensation Expense below) are participating securities as defined by GAAP. We compute basic EPS by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding for the period, adjusted to exclude non-vested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of non-vested RSUs and RSAs except when doing so would be anti-dilutive. Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure upon which to compute historical EPS. Accordingly, EPS has not been presented for historical periods prior to the IPO.

Derivatives

We enter into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes. We do not enter into Hedging Derivatives for trading or other speculative purposes, and all of our Hedging Derivatives are carried at fair value on our condensed consolidated balance sheets. Designated hedges are derivatives that meet the criteria for hedge accounting and that we have elected to designate as hedges. Non-designated hedges are derivatives that do not meet the criteria for hedge accounting or that we have not elected to designate as hedges.

Pursuant to the terms of certain of our mortgage loans, we are required to maintain interest rate caps. We have elected not to designate these interest cap agreements for hedge accounting (collectively, the “Non-Designated Hedges”). We enter into interest rate swap agreements to hedge the risk arising from changes in our interest payments on variable-rate debt due to changes in the one-month London Interbank Offered Rate (“LIBOR”). In connection with the Pre-IPO Transactions, as of January 31, 2017, we have elected to account for our interest rate swap agreements as effective cash flow hedges (collectively, the “Designated Hedges”). We assess the effectiveness of these interest rate swap cash flow hedging relationships on an ongoing basis. The effect of these interest rate cap agreements and interest rate swap agreements is to reduce the variability of interest payments due to changes in LIBOR.

The fair value of Hedging Derivatives that are in an asset position are included in other assets, net and those in a liability position are included in other liabilities on our condensed consolidated balance sheets. For Non-Designated Hedges, the related changes in fair value are reflected within interest expense in the condensed consolidated statements of operations. For Designated Hedges, the effective portion of the related changes in fair value is reported as a component of other comprehensive income (loss) on our condensed consolidated balance sheets and reclassified into earnings as interest expense in our condensed consolidated statements of operations when the hedged transactions affect earnings; the ineffective portion of the changes in fair value is reflected directly within interest expense in the condensed consolidated statements of operations.SeeNote 7for further discussion of derivative financial instruments.

Share-Based Compensation Expense

Prior to the IPO, we recognized share-based compensation expense for incentive compensation units granted by the Invitation Homes Partnerships (the “Class B Units”). In connection with and subsequent to the IPO, we issued restricted stock units (“RSUs”) that settle in shares of common stock and restricted shares of common stock (“RSAs”) for which share-based compensation expense is recognized.

We recognized share-based compensation expense for the Class B Units based on the estimated fair value of the Class B Units and vesting conditions of the related incentive unit agreements. Since the Class B Units granted by IH1 were granted to employees of the Manager, a wholly owned subsidiary of IH1, the related share-based compensation expense was based on the grant-date fair value of the units and recognized in expense over the service period. Because units in IH2, IH3, IH4, IH5, and IH6 were granted to non-employees of those respective partnerships, fair value was remeasured for non-vested units at the end of each reporting period. The fair value of the Class B Units was determined based on a valuation model that took into account discounted cash flows and a market approach based on comparable companies and transactions.

15

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

We recognize share-based compensation expense for the RSUs and RSAs based on their grant-date fair value, net of expected forfeitures, over the service period from the grant date to vest date for each tranche or when any applicable performance conditions are met in accordance with the related RSU and RSA agreements. The grant-date fair value of RSUs and RSAs is generally based on the closing price of our common stock on the grant date except for market based RSU grant‑date fair values which are based on Monte-Carlo option pricing models.

Additional compensation expense is recognized if modifications to existing incentive compensation unit, RSU, or RSA agreements result in an increase in the post-modification fair value of the units that exceeds their pre-modification fair value. Share-based compensation expense is presented as a component of general and administrative expense and property management expense in our condensed consolidated statements of operations. See Note 10 for further discussion of share-based compensation expense.

Income Taxes

As a result of the Pre-IPO Transactions more fully described in Note 1, the Invitation Homes Partnerships transferred all assets, liabilities, and operations to INVH through certain mergers and related transactions, including the IH2 Property Holdings Merger. IH2 Property Holdings Inc. had previously elected to qualify as a Real Estate Investment Trust “REIT” for United States federal income tax purposes commencing with its taxable year ended December 31, 2013. Effective upon consummation of the IH2 Property Holdings Merger, INVH became subject to such REIT election.

We intend to continue to operate as a REIT, and our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Internal Revenue Code of 1986, as amended (the “Code”), which are related to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If we qualify for taxation as a REIT, we will generally not be subject to United States federal corporate income tax on our taxable income that is currently distributed to shareholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. If we fail to qualify as a REIT in any taxable year, we will be subject to federal taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for subsequent taxable years.

Even if we qualify as a REIT, we may be subject to United States federal income and excise taxes in various situations, such as on our undistributed income. We also will be required to pay a 100% tax on any net income on non-arm’s length transactions between us and a TRS, defined below, and on any net income from sales of assets that were held for sale to customers in the ordinary course. In addition, we could also be subject to the alternative minimum tax on items of tax preference. State and local tax laws may not conform to the United States federal income tax treatment, and we may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business. Any taxes imposed on us reduce our operating cash flow and net income.

As part of the formation of INVH, each of the Invitation Homes Partnerships (other than IH2) transferred assets into INVH solely in exchange for shares of common stock. Certain of the assets contributed contained built-in gains. Prior to the Pre-IPO Transactions, the contributing partnerships had indirect C corporation partners to which a portion of the built-in gain would be allocated. As a result, if we dispose of any such assets during the five-year period following the date the REIT acquired such assets, we will be subject to the regulations under Section 337(d) of the Code. In general terms, such regulations subject the REIT to the maximum corporate level tax rate on the lesser of (i) such built-in gains and (ii) the gain recognized by the REIT upon a taxable disposition of the contributed assets. We may, however, choose not to sell such assets during such five-year period or to sell them in a non-taxable transaction. As such, the potential taxes associated with these built-in gains are not estimable.

Certain of our operations or a portion thereof, are conducted through taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a subsidiary C-corporation that has not elected REIT status and as such is subject to United States federal and state corporate income tax. We use TRS entities to facilitate our ability to perform non-real estate related activities and/or perform non-customary services for residents that cannot be offered directly by a REIT.

For our TRS entities, deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for United States federal income tax purposes and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. We reduce deferred tax assets by recording a valuation allowance when we determine, based on available evidence, that it is more likely than not that the assets will not be realized. We recognize the tax consequences associated with intercompany transfers

16

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

between the REIT and TRS entities when the related assets affect our GAAP net income or loss, generally through depreciation, impairment losses, or sales to third-party entities.

Tax benefits associated with uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.

We file income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. Our filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years varying based upon the date of incorporation of the specific entity. The years open to examination range from 2013 to present.

Recent Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies the definition of modification with the objective of evaluating whether modification accounting should be applied when there are changes to the terms or conditions of a share-based payment award. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that period changes in the total of cash, cash equivalents, and amounts generally described as restricted cash or cash equivalents are explained in the statement of cash flow. Thus, amounts generally described as restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning and ending balances shown in the statement of cash flows. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies the classification of certain cash receipts and cash payments including debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims, and beneficial interests in securitization transactions. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than one year. Lessor accounting will remain similar to lessor accounting under current GAAP, while aligning with the FASB’s new revenue recognition guidance. The new standard will be effective for us for annual reporting periods beginning after December 15, 2018, and for interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

17

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance on revenue recognition and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, most industry-specific guidance and some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. The standard’s core principle is that a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These judgments may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. At that time, we may adopt the full retrospective approach or the modified retrospective approach. Early adoption is permitted only as of annual reporting periods, and interim periods therein, beginning after December 15, 2016. We are currently evaluating the method of adoption of this guidance and do not anticipate that the adoption of this guidance will have a material impact on our condensed consolidated financial statements as most of our revenue is from rental revenues, which this standard does not cover.

Note 3—Investments in Single-Family Residential Properties

The following table sets forth the net carrying amount associated with our properties by component:

	June 30, 2017			December 31, 2016
Land	$	2,716,934		$	2,703,388
Single-family residential property	6,856,390			6,829,579
Capital improvements	228,419			229,890
Equipment	31,778			31,988
Total gross investments in the properties	9,833,521			9,794,845
Less: accumulated depreciation	(917,961		)	(792,330		)
Investments in single-family residential properties, net	$	8,915,560		$	9,002,515

As of June 30, 2017 and December 31, 2016, the carrying amount of the residential property above included $121,831 and $122,009, respectively, of capitalized acquisition costs (excluding purchase price), along with $61,970 and $62,169, respectively, of capitalized interest, $25,907 and $26,050, respectively, of capitalized property taxes, $4,729 and $4,764, respectively, of capitalized insurance, and $2,879 and $2,890, respectively, of capitalized HOA fees.

During the three months endedJune 30, 2017 and 2016, we recognized $66,699 and $64,775, respectively, of depreciation expense related to the components of the properties, and $816 and $1,304, respectively, of depreciation and amortization related to corporate furniture and equipment. These amounts are included in depreciation and amortization on the condensed consolidated statements of operations. Further, during the three months endedJune 30, 2017 and 2016, impairments totaling $95 and $519, respectively, have been recognized and are included in impairment and other on the condensed consolidated statements of operations.

During the six months endedJune 30, 2017 and 2016, we recognized $133,352 and $129,184, respectively, of depreciation expense related to the components of the properties, and $1,740 and $2,597, respectively, of depreciation and amortization related to corporate furniture and equipment. These amounts are included in depreciation and amortization on the condensed consolidated statements of operations. Further, during the six months endedJune 30, 2017 and 2016, impairments totaling $1,132 and $519, respectively, have been recognized and are included in impairment and other on the condensed consolidated statements of operations.

18

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Note 4—Restricted Cash

Pursuant to the terms of the credit facility agreements and the mortgage loans described in Note 6, we are required to establish, maintain, and fund from time to time (generally either monthly or at the time borrowings are funded) certain specified reserve accounts. These reserve accounts include, but are not limited to, the following types of accounts: (i) completion reserves; (ii) renovation reserves; (iii) leasing commission reserves; (iv) debt service reserves; (v) property tax reserves; (vi) insurance premium and deductible reserves; (vii) standing reserves; (viii) special reserves; (ix) termination fee reserves; (x) eligibility reserves; (xi) collections; and (xii) non-conforming property reserves. In February 2017, the credit facilities were repaid in full and all related reserve accounts were released. Prior to that time, the credit facility reserve accounts were under the sole control of the Administrative Agent, as defined in the credit facility agreements. The reserve accounts associated with the mortgage loans are under the sole control of the loan servicer. Additionally, we hold security deposits pursuant to resident lease agreements that are required to be segregated. Accordingly, amounts funded to these reserve accounts and security deposit accounts have been classified within our condensed consolidated balance sheets as restricted cash. We also hold letters of credit as required by certain of our insurance policies.

The amounts funded, and to be funded, to the reserve accounts are subject to formulae included in the credit facility agreements and mortgage loan agreements and are to be released to us subject to certain conditions specified therein being met. To the extent that an event of default were to occur, the loan servicer (as it relates to the mortgage loans) has discretion to use such funds to either settle the applicable operating expenses to which such reserves relate or reduce the allocated loan amount associated with a residential property of ours.

As of June 30, 2017 and December 31, 2016, the balances in our restricted cash accounts are as set forth in the table below. At December 31, 2016, no amounts were funded to the completion, renovation, leasing commission, debt service, termination fee, and nonconforming property reserve accounts as the conditions specified in the credit facility agreements that require such funding did not exist, and none are required at June 30, 2017 as the credit facilities had been repaid in full.

	June 30, 2017		December 31, 2016
Resident security deposits	$	88,871	$	86,239
Collections	12,281		42,767
Property taxes	32,449		52,256
Insurance premium and deductible	—		4,432
Standing and capital expenditure reserves	1,754		24,409
Special reserves	—		34
Eligibility reserves	398		9,274
Letters of credit	2,511		2,681
Total	$	138,264	$	222,092

19

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Note 5—Other Assets

At June 30, 2017 and December 31, 2016, the balances in other assets, net are as follows:

	June 30, 2017		December 31, 2016
Investments in debt securities, net	$	230,498	$	209,337
Held for sale assets(1)	11,191		45,062
Prepaid expenses	25,418		21,883
Deferred leasing costs, net	7,327		7,710
Rent and other receivables, net	9,847		11,604
Deferred financing costs, net	8,689		—
Interest rate swap hedges (see Note 7)	2,955		—
Corporate fixed assets, net	6,001		6,247
Other	4,642		7,782
Total	$	306,568	$	309,625

(1) As of June 30, 2017 and December 31, 2016 (unaudited), 74 and 391 properties, respectively, were classified as held for sale.

Investments in Debt Securities, net

In connection with certain of the Securitizations, as defined in Note 6, we previously acquired $193,045 of Class G certificates. In 2016, we purchased $16,423 of Class F certificates, which had an unamortized discount of $33 and $131 as of June 30, 2017 and December 31, 2016, respectively. During the six months endedJune 30, 2017, we purchased $55,500 of Class B certificates, which had an unamortized discount of $3,521 as of June 30, 2017, and received repayments of $30,916 from retained debt securities. These investments in debt securities are classified as held to maturity investments (for additional information about the Securitizations, see Note 6). As of June 30, 2017 and December 31, 2016, there were no other than temporary impairments. As of June 30, 2017, the Class F and G certificates are scheduled to mature over the next 3 to 14 months, and the Class B certificates are scheduled to mature in 10 years.

Rent and Other Receivables, net

We lease our properties to residents pursuant to leases that generally have an initial contractual term of at least 12 months, provide for monthly payments, and are cancelable by the resident and us under certain conditions specified in the related lease agreements.

Included in other assets, net within the condensed consolidated balance sheets, is an allowance for doubtful accounts of $1,359 and $1,183, as of June 30, 2017 and December 31, 2016, respectively.

Deferred Financing Costs, net

In connection with our Revolving Facility (as defined in Note 6), we incurred $9,673 of financing costs during the six months endedJune 30, 2017, which have been deferred as other assets, net on our condensed consolidated balance sheet due to the line of credit features of the Revolving Facility. These deferred financing costs are being amortized as interest expense on a straight line basis over the term of the Revolving Facility.

20

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Note 6—Debt

Mortgage Loans

As of June 30, 2017, we have completed eight securitization transactions (the “Securitizations” or the “mortgage loans”) collateralized by homes owned by the respective Invitation Homes Borrower Entities. The proceeds from the mortgage loans were used to fund (i) partial repayments of the then-outstanding IH1 and IH2 credit facilities and other securitizations, (ii) initial deposits in the reserve accounts, (iii) closing costs in connection with the mortgage loans, (iv) general costs associated with our operations, and (v) distributions and dividends to the Pre-IPO Owners.

The following table sets forth a summary of the mortgage loan indebtedness as of June 30, 2017 and December 31, 2016:

				Outstanding Principal Balance(3)
	Maturity Date	Interest Rate(2)	Range of Spreads	June 30, 2017(4)			December 31, 2016
IH1 2013-1	N/A	N/A	115-365 bps	$	—		$	462,431
IH1 2014-1	N/A	N/A	100-375 bps	—			978,231
IH1 2014-2(1)(5)	September 9, 2018	3.13%	110-400 bps	704,523			710,664
IH1 2014-3(1)	December 9, 2017	3.56%	120-500 bps	147,634			766,753
IH2 2015-1, net(1)(6)	March 9, 2018	3.60%	145-430 bps	529,497			531,318
IH2 2015-2(1)	June 9, 2018	3.18%	135-370 bps	628,988			630,283
IH2 2015-3(1)(7)	August 9, 2018	3.41%	130-475 bps	1,170,395			1,184,314
IH1 2017-1, net(8)	June 9, 2027	4.17%	N/A	996,479			—
Total Securitizations				4,177,516			5,263,994
Less deferred financing costs, net				(18,850		)	(9,256		)
Total				$	4,158,666		$	5,254,738

(1) The initial maturity term of each of these mortgage loans istwoyears, individually subject to three, one-year extension options at the borrower’s discretion (provided that there is no continuing event of default under the loan agreement and the borrower obtains a replacement interest rate cap agreement in a form reasonably acceptable to the lender). Our IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 mortgage loans have exercised the first extension options, and IH1 2014-2 has exercised the second option.The maturity dates above are reflective of all extensions that have been exercised.

(2) For each of our first seven mortgage loans, interest rates are based on a weighted average spread to LIBOR; as ofJune 30, 2017 LIBOR was1.23%. Our IH1 2017-1 mortgage loan bears interest at a fixed rate of4.17%per annum equal to the market determined pass-through rate payable on the certificates, plus applicable servicing fees.

(3) Outstanding Principal Balance is net of discounts and does not include capitalized deferred financing costs, net.

(4) From July 1, 2017 toAugust 7, 2017, we made prepayments of$848on our mortgage loans related to the disposition of properties.

(5) On August 3, 2017, we exercised our secondone-year extension option on IH1 2014-2, extending the maturity from September 9, 2017 to September 9, 2018 (see Note 15).

(6) Net of unamortized discount of $0and$55as ofJune 30, 2017andDecember 31, 2016, respectively.

(7) On July 12, 2017, we exercised our first one-year extension option on IH2 2015-3, extending the maturity from August 9, 2017 to August 9, 2018 (see Note 15).

(8) Net of unamortized discount of$3,521as ofJune 30, 2017.

Securitization Transactions

IH1 2013-1: In November 2013, we completed our first securitization transaction (“IH1 2013-1”), in which 2013-1 IH Borrower L.P. (“S1 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a sixcomponent term loan to S1 Borrower in the amount of

21

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

$479,137. All sixcomponents of the loan were sold at par. On February 6, 2017, the outstanding balance of IH1 2013-1 was repaid in full.

IH1 2014-1: In May 2014, we completed our second securitization transaction (“IH1 2014-1”), in which 2014-1 IH Borrower L.P. (“S2 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third party lender made asixcomponent term loan to S2 Borrower in the amount of $993,738. All six components of the loan were sold at par. On February 6, 2017 and March 9, 2017, we made voluntary prepayments of$291,500 and $260,000, respectively. On April 28, 2017, the outstanding balance of IH1 2014-1 was repaid in full.

IH1 2014-2: In August 2014, we completed our third securitization transaction (“IH1 2014-2”), in which 2014-2 IH Borrower L.P. (“S3 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a term loan comprised of (1) sixfloating rate components and (2)one fixed rate component to S3 Borrower in the amount of$719,935. Of the sevenloan components, the Class A, B, C, D and G certificates were sold at par; however, the Class E and F certificates were sold at a total discount of $3,970. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning October 9, 2014 and continuing monthly thereafter.

IH1 2014-3: In November 2014, we completed our fourth securitization transaction (“IH1 2014-3”), in which 2014-3 IH Borrower L.P. (“S4 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender issued a term loan comprised of (1) six floating rate components and (2) one fixed rate component to S4 Borrower in the amount of $769,322. Of thesevencomponents, the Class B and G certificates were sold at par; however, the Class A, C, D, E and F certificates were sold at a total discount of $7,235. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning December 9, 2014 and continuing monthly thereafter.On May 9, 2017 and June 9, 2017, we made voluntary prepayments of$510,000and$100,000, respectively, from the proceeds of IH1 2017-1 securitization transaction and cash flows from operations.

IH2 2015-1: In January 2015, we completed our fifth securitization transaction (“IH2 2015-1”), in which 2015-1 IH2 Borrower L.P. (“S5 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a sevencomponent term loan to S5 Borrower in the amount of $540,854. Six of the sevencomponents, the Class A, B, C, D, E, and G certificates were sold at par; however, the Class F certificates were sold at a total discount of $622. The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheets as ofJune 30, 2017 and December 31, 2016. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning March 9, 2015 and continuing monthly thereafter.

IH2 2015-2: In April 2015, we completed our sixth securitization transaction (“IH2 2015-2”), in which 2015-2 IH2 Borrower L.P. (“S6 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made asevencomponent term loan to S6 Borrower in the amount of$636,686. All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning June 9, 2015 and continuing monthly thereafter.

IH2 2015-3: In June 2015, we completed our seventh securitization transaction (“IH2 2015-3”), in which 2015-3 IH2 Borrower L.P. (“S7 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a sevencomponent term loan to S7 Borrower in the amount of$1,193,950. All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning August 7, 2015 and continuing monthly thereafter.

IH1 2017-1: In April 2017, we completed our eighth securitization transaction (“IH1 2017-1”), in which 2017-1 IH Borrower L.P. (“S9 Borrower”), a special purpose entity previously formed in connection with IH1 2014-1 and wholly owned subsidiary of IH1, entered into a loan agreement with Wells Fargo Bank, National Association (the “FNMA Loan”), providing for aten-year, fixed rate mortgage loan comprised of twocomponents with a total principal amount of $1,000,000, secured by first priority mortgages on a portfolio of7,204of our homes. The Class A certificates, which benefit from Fannie Mae’s guaranty of timely payment of principal and interest, were sold at par. The Class B certificates represent a beneficial

22

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

interest in the most subordinate component of the FNMA Loan and were sold at a total discount of$3,580. The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheet as of June 30, 2017. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning June 9, 2017 and continuing monthly thereafter.

Concurrent with the execution of each loan agreement, the respective third-party lender sold each loan it originated with us to individual depositor entities (the “Depositor Entities”) who subsequently transferred each loan to Securitization-specific trust entities (the “Trusts”). The Depositor Entities associated with the IH1 2014-2, IH1 2014-3 and IH1 2017-1 securitizations are wholly owned subsidiaries of IH1, the Depositor Entities associated with the IH2 2015-1, IH2 2015-2, and IH2 2015-3 securitizations are wholly owned subsidiaries of IH2, and the Depositor Entities associated with the IH1 2013-1 and IH1 2014-1 securitizations were wholly owned by unaffiliated third parties.

We accounted for the transfer of the individual Securitizations from the Depositor Entities wholly owned by IH1 and IH2 to the respective Trusts as a sale under ASC Topic 860, Transfers and Servicing, with no resulting gain or loss as the Securitizations were originated by the lender and immediately transferred at the same fair market value.

As consideration for the transfer of each loan to the Trusts, the Trusts issued certificate classes which mirror the components of the individual loan agreements (collectively, the “Certificates”) to the Depositor Entities, except that Class R certificates do not have related loan components as they represent residual interests in the Trusts. The Certificates represent the entire beneficial interest in the Trusts. Following receipt of the Certificates, the Depositor Entities sold the Certificates to investors using the proceeds as consideration for the loans sold to the Depositor Entities by the lenders. These transactions hadno effect on our condensed consolidated financial statements other than with respect to the Class B certificates purchased by the Operating Partnership, and the Class G certificates purchased by IH1 and IH2.

For IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3, the Trusts made the Class A through Class F certificates available for sale to both domestic and foreign investors. With the introduction of foreign investment, IH1 and IH2, as sponsors of the respective loans, are required to retain a portion of the risk that represents a material net economic interest in each loan. The Class G certificates for IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 are equal to 5%of the original principal amount of the loans in accordance with the agreements. Per the terms of the Securitization agreements, the Class G certificates are restricted certificates and were made available exclusively to IH1 and IH2, as applicable. The Class G certificates are principal only and bear a stated annual interest rate of 0.0005%. The Class G certificates are classified as held to maturity investments and are recorded in other assets, net on the condensed consolidated balance sheets (see Note 5).

For IH1 2017-1, the Trust made the Class A certificates available for sale to both domestic and foreign investors. In accordance with risk retention requirements of Regulation RR (the “Risk Retention Rules”) under the Exchange Act, the Operating Partnership, as the loan sponsor, is required to retain a portion of the credit risk that represents not less than5%of the aggregate fair value of the loan as of the closing date. Per the terms of the agreement, the Class B certificates are restricted certificates that were made available exclusively to the Operating Partnership. The Class B certificates pay interest and bear a stated annual interest rate of4.17% plus applicable servicing fees. The Class B certificates are classified as held to maturity investments and are recorded in other assets, net on the condensed consolidated balance sheets (see Note 5).

The Trusts are structured as pass through entities that receive principal and interest from the Securitizations and distribute those payments to the holders of the Certificates. The assets held by the Trusts are restricted and can only be used to fulfill the obligations of those entities. The obligations of the Trusts do not have any recourse to the general credit of any entities in these condensed consolidated financial statements. We have evaluated our interests in the Class B and G certificates of the Trusts and determined that they do not create a more than insignificant variable interest in the Trusts. Additionally, the Class B and G certificates do not provide us with any ability to direct the activities that could impact the Trusts’ economic performance. Therefore, we do not consolidate the Trusts.

General Terms

The general terms that apply to all of the mortgage loans require us to maintain compliance with certain affirmative and negative covenants. Affirmative covenants with which we must comply include our, and certain of our affiliates’, compliance with (i) licensing, permitting and legal requirements specified in the loan agreement, (ii) organizational requirements of the jurisdictions in which we, and certain of our affiliates, are organized, (iii) federal and state tax laws, and (iv) books and records requirements specified in the respective loan agreements. Negative covenants with which we must comply include

23

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

our, and certain of our affiliates’, compliance with limitations surrounding (i) the amount of our indebtedness and the nature of our investments, (ii) the execution of transactions with affiliates, (iii) the Manager, and (iv) the nature of our business activities. At June 30, 2017, and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants.

Prepayments

For the mortgage loans, prepayments of amounts owed are generally not permitted by us under the terms of the respective loan agreements unless such prepayments are made pursuant to the voluntary election and mandatory provisions specified in such agreements. The specified mandatory provisions become effective to the extent that a property becomes characterized as a disqualified property, a property is sold, and/or upon the occurrence of a condemnation or casualty event associated with a property. To the extent either a voluntary election is made, or a mandatory prepayment condition exists, in addition to paying all interest and principal, we must also pay certain breakage costs as determined by the loan servicer and a spread maintenance premium if prepayment occurs before the month following the one year anniversary of the closing dates of each of the mortgage loans except for IH1 2017-1. For IH1 2017-1, prepayments on or before December 2026 will require a yield maintenance premium. For thesix months endedJune 30, 2017and2016, voluntary and mandatory prepayments totaling$2,083,012and$30,738, respectively, were made under the terms of the loan agreements.

Collateral

Collateral for the mortgage loans includes first priority mortgages on certain of our properties and a grant of a security interest in all of our personal property. The following table lists the gross carrying values of the single-family residential properties, including held for sale properties, pledged as collateral for the loans as of June 30, 2017 and December 31, 2016:

	Number of Homes(1)	June 30, 2017		December 31, 2016
IH1 2013-1	—	$	—	$	533,005
IH1 2014-1	—	—		1,124,069
IH1 2014-2	3,619	784,024		785,459
IH1 2014-3	3,915	844,870		850,056
IH2 2015-1	2,999	593,546		594,155
IH2 2015-2	3,507	744,001		744,070
IH2 2015-3	6,985	1,368,310		1,382,683
IH1 2017-1	7,204	1,241,282		—
Total	28,229	$	5,576,033	$	6,013,497

(1) The loans are secured by first priority mortgages on portfolios of single-family residential properties owned by S1 Borrower, S2 Borrower, S3 Borrower, S4 Borrower, S5 Borrower, S6 Borrower, S7 Borrower, and S9 Borrower. The numbers of homes noted above are as of June 30, 2017. As of December 31, 2016, a total of 30,900 homes (unaudited) were secured by the above-mentioned mortgage loans.

24

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Debt Maturities Schedule

Future maturities of these mortgage loans as of June 30, 2017 are set forth in the table below:

Year	Principal(1)
2017	$	147,634
2018	3,033,403
2019 and thereafter	1,000,000
Total payments	4,181,037
Less discounts	(3,521		)
Total mortgage loans, net	$	4,177,516

(1) Each of the mortgage loans, except IH1 2017-1, are subject to threeone-year extension options at the borrower's discretion (upon approval from the lender), of which the IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 mortgage loans have exercised the first extension options, and IH1 2014-2 has exercised the second option.

New Credit Facility

On February 6, 2017, we entered into a loan agreement with a syndicate of banks, financial institutions and institutional lenders for a new credit facility (the “New Credit Facility”). The New Credit Facility provides $2,500,000of borrowing capacity and consists of a $1,000,000revolving facility (the “Revolving Facility”), which will mature on February 6, 2021, with a one-year extension option, and a $1,500,000term loan facility (the “Term Loan Facility”), which will matureon February 6, 2022. The Revolving Facility also includes borrowing capacity available for letters of credit and for short-term borrowings referred to as swing line borrowings, in each case subject to certain sublimits. The New Credit Facility provides us with the option to enter into additional incremental credit facilities (including an uncommitted incremental facility that provides us with the option to increase the size of the Revolving Facility and/or the Term Loan Facility by an aggregate amount of up to $1,500,000), subject to certain limitations. Proceeds from the Term Loan Facility were used to repay existing indebtedness and for general corporate purposes.

The following table sets forth a summary of the outstanding principal amounts under such loans as of June 30, 2017:

	Maturity Date	Interest Rate(1)	June 30, 2017
Term loan facility	February 6, 2022	3.03%	$	1,500,000
Revolving facility	February 6, 2021	N/A	—
Total			1,500,000
Less deferred financing costs, net			(13,471		)
Total			$	1,486,529

(1) Interest rate for the Term Loan Facility is based on LIBOR plus an applicable margin of 1.80%; as of June 30, 2017, LIBOR was 1.23%.

Interest Rate and Fees

Borrowings under the New Credit Facility bear interest, at our option, at a rate equal to a margin over either (a) a LIBOR rate determined by reference to the Bloomberg LIBOR rate (or comparable or successor rate) for the interest period relevant to such borrowing or (b) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus0.50%, and (3) the LIBOR rate that would be payable on such day for a LIBOR

25

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

rate loan with a one-month interest period plus1.00%. The margin is based on a total leverage based grid. The margin for the Revolving Facility ranges from0.75% to 1.30%, in the case of base rate loans, and 1.75% to 2.30%, in the case of LIBOR rate loans. The margin for the Term Loan Facility ranges from0.70% to 1.30%, in the case of base rate loans, and 1.70% to 2.30%, in the case of LIBOR rate loans. In addition, the New Credit Facility provides that, upon receiving an investment grade rating on its non-credit enhanced, senior unsecured long term debt of BBB- or better from Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or Baa3 or better from Moody’s Investors Service, Inc. (an “Investment Grade Rating Event”), we may elect to convert to a credit rating based pricing grid.

In addition to paying interest on outstanding principal under the New Credit Facility, we are required to pay a facility fee to the lenders under the Revolving Facility in respect of the unused commitments thereunder. The facility fee rate is based on the daily unused amount of the Revolving Facility and is either0.350% or 0.200% per annum based on the unused facility amount. Upon converting to a credit rating pricing based grid, the unused facility fee will no longer apply; and we will be required to pay a facility fee ranging from0.125% to 0.300%. We are also required to pay customary letter of credit fees.

Prepayments and Amortization

Noprepayment or amortization is required under the New Credit Facility. We are permitted to voluntarily repay amounts outstanding under the Term Loan Facility at any time without premium or penalty, subject to certain minimum amounts and the payment of customary “breakage” costs with respect to LIBOR loans. Once repaid,nofurther borrowings will be permitted under the Term Loan Facility.

General Terms

The New Credit Facility contains certain customary affirmative and negative covenants and events of default. Such covenants will, among other things, restrict, subject to certain exceptions, our ability and that of the Subsidiary Guarantors (as defined below) and their respective subsidiaries to (i) engage in certain mergers, consolidations or liquidations, (ii) sell, lease or transfer all or substantially all of their respective assets, (iii) engage in certain transactions with affiliates, (iv) make changes to the our fiscal year, (v) make changes in the nature of our business and our subsidiaries and (vi) incur additional indebtedness that is secured on a pari passu basis with the New Credit Facility.

The New Credit Facility also requires us, on a consolidated basis with our subsidiaries, to maintain a (i) maximum total leverage ratio, (ii) maximum secured leverage ratio, (iii) maximum unencumbered leverage ratio, (iv) minimum fixed charge coverage ratio, (v) minimum unencumbered fixed charge coverage ratio and (vi) minimum tangible net worth. If an event of default occurs, the lenders under the New Credit Facility are entitled to take various actions, including the acceleration of amounts due under the New Credit Facility and all actions permitted to be taken by a secured creditor. AtJune 30, 2017, and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants.

Guarantees and Security

The obligations under the New Credit Facility are guaranteed on a joint and several basis by each of our direct and indirect domestic wholly owned subsidiaries that own, directly or indirectly, unencumbered assets (the “Subsidiary Guarantors”), subject to certain exceptions. The guarantee provided by any Subsidiary Guarantor will be automatically released upon the occurrence of certain events, including if it no longer has a direct or indirect interest in an unencumbered asset or as a result of certain non-recourse refinancing transactions pursuant to which such Subsidiary Guarantor becomes contractually prohibited from providing its guaranty of the New Credit Facility. In addition, INVH may be required to provide a guarantee of the New Credit Facility under certain circumstances, including if INVH does not maintain its qualification as a REIT.

The New Credit Facility is collateralized by first priority or equivalent security interests in all the capital stock of, or other equity interests in any Subsidiary Guarantor, held by us and each of the Subsidiary Guarantors. The security interests granted under the New Credit Facility will be automatically released upon the occurrence of certain events, including upon an Investment Grade Rating Event or if the total net leverage ratio is less than or equal to 8.00:1.00 for four consecutive fiscal quarters.

26

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Debt Maturities Schedule

Future maturities of the New Credit Facility as of June 30, 2017 are set forth in the table below:

Year	Principal
2022	$	1,500,000

Credit Facilities

All of the then-existing credit facilities were paid in full on February 6, 2017 in connection with the closing of our IPO. The following table sets forth a summary of the outstanding principal amounts of these credit facilities as ofJune 30, 2017 and December 31, 2016:

			Outstanding Principal Balance(1)
	Origination Date	Range of Spreads	June 30, 2017		December 31, 2016
IH1 2015	April 3, 2015	325 bps	$	—	$	85,492
IH2 2015	September 29, 2015	275 bps	—		43,859
IH3 2013	December 19, 2013	300-425 bps	—		932,583
IH4 2014	May 5, 2014	300-425 bps	—		529,866
IH5 2014	December 5, 2014	275-400 bps	—		564,348
IH6 2016	April 13, 2016	250-375 bps	—		165,437
Total			—		2,321,585
Less deferred financing costs, net			—		(6,044		)
Total			$	—	$	2,315,541

(1) Outstanding Principal Balance does not include capitalized deferred financing costs, net.

Note 7—Derivative Instruments

From time to time, we enter into Hedging Derivatives to manage the economic risk of changes in interest rates. We do not enter into derivative transactions for speculative or trading purposes. Designated hedges are derivatives that meet the criteria for hedge accounting and for which we have elected to designate them as hedges. Non-Designated Hedges are derivatives that do not meet the criteria for hedge accounting or we have not elected to designate them as hedges.

Designated Hedges

We have entered into various interest rate swap agreements, as outlined in the table below. Certain of the Invitation Homes Partnerships and certain Borrower Entities guaranteed the obligations under each of the interest rate swaps from the date the swaps were entered into through the date of the IPO. Each of these swaps was accounted for as a non-designated hedge until January 31, 2017, when the criteria for hedge accounting were met as a result of the Pre-IPO Transactions described in Note 1. At that time, we designated these swaps for hedge accounting purposes; and the effective portion of changes in the fair value of these swaps is recorded in other comprehensive income subsequent to that date.

27

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

The table below summarizes our interest rate swap instruments as of June 30, 2017:

Agreement Date	Forward Effective Date	Maturity Date	Strike Rate	Index	Notional Amount
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	$	750,000
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	750,000
January 12, 2017	February 28, 2017	August 7, 2020	1.59%	One-month LIBOR	1,100,000
January 13, 2017	February 28, 2017	June 9, 2020	1.63%	One-month LIBOR	595,000
January 20, 2017	February 28, 2017	March 9, 2020	1.60%	One-month LIBOR	325,000

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income on the condensed consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During thesix months endedJune 30, 2017, such derivatives were used to hedge the variable cash flows associated with existing variable-rate interest payments. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Changes in fair value related to the ineffective portion of our Designated Hedges resulted in an unrealized gain of$38 for thesix months endedJune 30, 2017, which is included in interest expense in our condensed consolidated statements of operations.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next twelve months, we estimate that an additional $11,452will be reclassified to earnings as an increase to interest expense. There were no interest rate swap agreements outstanding during the six months ended June 30, 2016.

Non-Designated Hedges

Concurrent with entering into certain of the mortgage loan agreements, we entered into and maintain interest rate cap agreements with terms and notional amounts equivalent to the terms and amounts of the loans made by the third-party lenders and strike prices ranging from approximately 2.52% to 3.09%(collectively, the “Strike Prices”). To the extent that the maturity date of one or more of the loans is extended through an exercise of one or more of the extension options, replacement or extension interest rate cap agreements must be executed with terms similar to those associated with the initial interest rate cap agreements and strike prices equal to the greater of the Strike Prices and the interest rate at which the debt service coverage ratio (as defined) is not less than 1.2 to 1.0. The interest rate cap agreements, including all of our rights to payments owed by the counterparty and all other rights, have been pledged as additional collateral for the loans.

Changes in fair value related to Non-Designated Hedges resulted in unrealized losses of $3,802 for the six months endedJune 30, 2017, which are included in interest expense in our condensed consolidated statements of operations. Of the unrealized losses, $3,674 related to changes in value on interest rate swaps prior to their designation on January 31, 2017, and $128 related to the non-designated interest rate caps.

28

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Tabular Disclosure of Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets

The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016:

	Asset Derivatives					Liability Derivatives
		Fair Value at:					Fair Value at:
	Balance Sheet Location	June 30, 2017		December 31, 2016		Balance Sheet Location	June 30, 2017		December 31, 2016
Derivatives designated as hedging instruments:
Interest rate swaps	Other assets	$	2,955	$	—	Other liabilities	$	9,872	$	—
Derivatives not designated as hedging instruments:
Interest rate swaps	Other assets	—		—		Other liabilities	—		8,683
Interest rate caps	Other assets	—		29		Other liabilities	—		—
Total		$	2,955	$	29		$	9,872	$	8,683

Tabular Disclosure of the Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months endedJune 30, 2017 and 2016:

	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)					Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)
	For the Three Months Ended June 30,						For the Three Months Ended June 30,						For the Three Months Ended June 30,
	2017			2016			2017			2016			2017		2016
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(14,759	)	$	—	Interest expense	$	(6,059	)	$	—	Interest expense	$	37	$	—

29

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

	Location of Gain (Loss) Recognized in Net Loss on Derivative	Amount of Gain (Loss) Recognized in Net Loss on Derivative
		For the Three Months Ended June 30,
		2017			2016
Derivatives not designated as hedging instruments:
Interest rate swaps	Interest expense	$	—		$	—
Interest rate caps	Interest expense	(50		)	—
Total		$	(50	)	$	—

The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the six months endedJune 30, 2017 and 2016:

	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)					Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)
	For the Six Months Ended June 30,						For the Six Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016			2017		2016
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(4,198	)	$	—	Interest expense	$	(8,770	)	$	—	Interest expense	$	38	$	—

	Location of Gain (Loss) Recognized in Net Loss on Derivative	Amount of Gain (Loss) Recognized in Net Loss on Derivative
		For the Six Months Ended June 30,
		2017			2016
Derivatives not designated as hedging instruments:
Interest rate swaps	Interest expense	$	(3,674	)	$	—
Interest rate caps	Interest expense	(128		)	—
Total		$	(3,802	)	$	—

Credit-Risk-Related Contingent Features

We have agreements with our derivative counterparties for our interest rate swap agreements that contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness.

30

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

As of June 30, 2017, the fair value of interest rate swap derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $10,445. As of June 30, 2017, we have not posted any collateral related to these agreements. If we have breached any of these provisions at June 30, 2017, we could have been required to settle its obligations under the agreements at their termination value of $10,445.

Note 8—Equity

Shareholders’ Equity

In connection with our IPO, we issued 310,376,634 shares of common stock to the public and the Pre-IPO Owners and 3,290,126 RSUs (see Note 10), and our IPO raised $1,692,058, net of underwriting discount, and before offering costs of $5,726.

To qualify as a REIT, we are required to distribute annually to our shareholders at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our net taxable income. We intend to pay quarterly dividends to our shareholders, which in the aggregate are approximately equal to or exceed our net taxable income in the relevant year.

On May 31, 2017 we paid a$0.06dividend per share; and on August 3, 2017, we declared an $0.08dividend per share to stockholders of record on August 15, 2017, which is payable on August 31, 2017.

Combined Equity

Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure. As described in Note 1, IH1, IH3, IH4, IH5, and IH6 are partnerships. These entities each had limited partners and a general partner (the “Class A Partners”), along with a board of directors designated in the respective limited partnership agreements. IH2 was a Delaware corporation and had issued 1,000 shares of common stock and 113 shares of Series A Preferred Stock. IH2 had a board of directors elected by the common shareholders. The same board of directors was responsible for directing the significant activities of the Invitation Homes Partnerships and the Operating Partnership on a combined basis.

The IH2 Series A Preferred Stock ranked, in respect of rights to the payment of dividends and the distribution of assets in the event of any liquidation or dissolution, senior to the IH2 common stock. Holders of such IH2 Series A Preferred Stock shares were entitled to receive cumulative cash dividends at the rate of 12.0% per annum of the total of a liquidation preference. On January 31, 2017, in connection with the Pre-IPO Transactions, the Series A Preferred Stock was redeemed for $1,153, inclusive of the redemption premium and accrued and unpaid dividends to that date. No dividends were declared or paid with respect to the Series A Preferred Stock during the six months endedJune 30, 2016. As of December 31, 2016, there were no dividend amounts declared and outstanding related to the 12.0% per annum dividend requirements of the Series A Preferred Stock.

Profits and losses, and cash distributions were allocated in accordance with the terms of the respective entity’s organizational documents. We made no distributions to our equity investors, and we received $138,002 of contributions during the six months endedJune 30, 2016.

As further described in Note 10, we granted certain individuals incentive compensation units in IH1, IH2, IH3, IH4, IH5, and IH6, which consisted of Class B units that were accounted for as a substantive class of equity due to the terms of the agreements and rights of the holders. We previously made distributions to certain Class B unitholders in the form of non-recourse cash advances totaling $11,023. Any amounts distributed to the holders of the Class B units whose Class B units were converted in connection with the Pre-IPO Transactions (see Note 10), reduced the number of converted shares common stock received by amounts previously paid to such Class B unitholders as advance distributions. As a result of the Pre-IPO Transactions, there are no longer any Class B Units outstanding.

We previously executed notes receivables with certain Class B unitholders (the “Class B Notes”) and funded $20,228 pursuant to those note agreements, of which $1,527, including accrued interest had been repaid as of December 31, 2016. On January 5, 2017, $7,723 of Class B Notes, including accrued interest, were canceled, and the transaction was accounted for as a distribution to the underlying unitholder. As part of the Pre-IPO Transactions, IH1 assigned $11,963, including accrued

31

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

interest, of Class B Notes to a wholly owned subsidiary of the Pre-IPO Owners that was formed in connection with the reorganization described in Note 1, and the transaction was accounted for as a distribution. The Class B Notes were secured by certain of the Class B units of the makers of the Class B Notes and were otherwise non-recourse to the makers. The Class B Notes matured at the earlier of a liquidation event or defined dates in 2024 and bore interest of 1.57% to 1.97% per annum. As such, the Class B Notes were recorded as a component of combined equity on our condensed consolidated balance sheet as of December 31, 2016.

Note 9—Related Party Transactions

Through December 31, 2014, certain related parties provided us with consulting services for which we recorded payables. We also made offsetting income tax payments related to distributions on behalf of these related parties. During the year ended December 31, 2016, we repaid the $1,959 outstanding as of December 31, 2015.

Note 10—Share-Based Compensation

We have share-based compensation programs for the purpose of retaining certain key employees. Prior to the IPO, the program consisted of incentive compensation units, the Class B Units, granted in the form of profits interests in the Invitation Homes Partnerships. In connection with and subsequent to the IPO, we granted awards in the form of RSUs that settle in shares of common stock of INVH and RSAs that are restricted shares of common stock of INVH.

Profits Interests — Class B Units

Prior to the IPO, the Invitation Homes Partnerships granted incentive compensation units to certain key employees, which were profits interests for United States federal income tax purposes. The Class B Units were accounted for as a substantive class of equity and contained both service based and performance based vesting criteria. Recognition of compensation expense was recorded based on whether or not the award recipient was an employee of the Manager, a wholly owned subsidiary of IH1, resulting in some awards being recognized based on grant-date fair value and others being remeasured at each reporting period until the actual vesting date as required for non-employee awards. Prior to the IPO, none of the performance based vesting criteria had been achieved, and as such through the date of the IPO, no compensation expense had been recorded for performance based Class B Units. However, the IPO triggered achievement of the performance based criteria and effectively converted all such awards into service based awards.

2017 New Class B Unit Awards: Pursuant to an amended and restated partnership agreement, on January 5, 2017, IH6 issued certain individuals a total of 9,650 Class B Units that were expected to vest based on terms and conditions similar to all other Class B Units. In January 2017, an additional 188 Class B Units in total were issued from IH1, IH2, and IH3.

2017 Class B Unit Conversion: The Pre-IPO Transactions described in Note 1 resulted in accelerated vesting of 7,520 Class B Units held by certain unitholders which resulted in additional share-based compensation expense of $11,601 during the six months endedJune 30, 2017. On January 31, 2017, in connection with the IPO, all of the Class B Units held by current employees of the Manager (except for 3,878 fully vested Class B Units awarded to a certain unitholder) were either converted into shares of INVH common stock or canceled based on the value of the Class B Units implied by the per share price of common stock sold to the public in the IPO. As such, a total of 730 Class B Units were converted into 62,529 RSAs, and 17,669 Class B Units were canceled for no consideration. For the Class B Units converted into RSAs, vesting and other terms of the RSAs delivered in the conversion have the same vesting and other terms applicable to the corresponding Class B Units converted.

Additionally, the obligations under the remaining 40,992 fully vested Class B Units, including those of the unitholders who are not current employees of the Manager and the one employee unitholder noted above that did not convert, were converted into similar units of newly formed subsidiaries of the Pre-IPO Owners. All Class B Units held by former employees of the Manager are fully vested.

32

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

The following table summarizes the activity related to the Class B Units for the period from December 31, 2016 through January 31, 2017, the date at which they were all canceled or converted:

	Class B Units
	Employee					Non-employee					Total Class B Units
	Number of Units		Weighted Average Fair Value			Number of Units		Weighted Average Fair Value			Number of Units		Weighted Average Fair Value
Balance, December 31, 2016	9,915		$	4.2		39,638		$	2.5		49,553		$	2.9
Granted	85		14.0			9,753		—			9,838		0.1
Converted to RSAs	(245	)	(3.4		)	(485	)	(0.8		)	(730	)	(1.7		)
Canceled	(555	)	(8.2		)	(17,114	)	(0.4		)	(17,669	)	(0.6		)
Converted to Units of affiliated entities	(9,200	)	(4.0		)	(31,792	)	(2.9		)	(40,992	)	(3.2		)
Balance, January 31, 2017	—		$	—		—		$	—		—		$	—

As of January 31, 2017, no Class B Units were outstanding.

RSAs and RSUs Issued by INVH

RSAs: In connection with the conversion of the Class B Units in January 2017, we issued 62,529 RSAs, of which 54,729 were fully vested as of June 30, 2017, and the remaining 7,800 non-vested RSAs will vest in accordance with the original terms of the Class B Unit award agreements. The conversion of the Class B Units into RSAs resulted in a modification of the awards of which some were previously accounted for as non-employee awards. The modification resulted in the reversal of $246 of previously recognized incentive compensation expense with respect to these non-employee awards during the six months endedJune 30, 2017.

RSUs: Prior to the completion of the IPO, our board of directors adopted, and our shareholders approved, the Invitation Homes Inc. 2017 Omnibus Incentive Plan (the “Omnibus Incentive Plan”) to provide a means through which to attract and retain key personnel and to provide a means whereby our directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in us, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock, and aligning their interests with those of our shareholders. Under the Omnibus Incentive Plan, we may issue up to 16,000,000 shares, and as of June 30, 2017, we have awarded 4,467,409 shares under the Omnibus Incentive Plan pursuant to our annual Long Term Incentive Plan (“LTIP”) awards, Supplemental Bonus Plan, the IH6 Bonus Awards, and certain non-employee director awards.

• Annual LTIP Awards: On June 23, 2017, we granted 860,837 RSUs pursuant to LTIP awards (the “LTIP Awards”) each of which is divided into three tranches (“Tranche 1,” “Tranche 2,” and “Tranche 3”). Within each tranche, 25% of the LTIP Award contains time-vesting conditions, approximately 25% contains a market based vesting condition based on absolute total shareholder return, and approximately 50% contains performance based vesting conditions based on compounded annual growth in our same store net operating income and adjusted funds from operations.

The time-vesting awards vest in installments based on anniversary dates of March 1, 2017 based on continued employment through the applicable vesting date as follows: Tranche 1 on the first anniversary; Tranche 2 in two equal installments on each of the first and second anniversaries; and Tranche 3 in four equal installments on each of the first four anniversaries. The time-vesting LTIP awards are participating securities for EPS purposes.

The market and performance based awards may be earned based on the achievement of certain measures over an approximate one-, two-, or three-year performance period, which performance periods correspond, respectively, to the Tranche 1, Tranche 2, and Tranche 3 LTIP Awards. The number of RSUs earned will be determined based on performance achieved during the specified performance period for each measure at certain threshold, target, or maximum levels and corresponding payout ranges. In general, the market and performance based RSUs are earned on the date after the end of the performance period on which the performance results are certified by the compensation committee of the board of directors (the “Certification Date”). The Tranche 1 and Tranche 2 market and performance based RSUs will vest on the Certification Date subject to continued employment through such

33

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

date. The Tranche 3 market and performance based RSUs will vest in two equal installments, on the related Certification Date and December 31, 2020, subject to continued employment through such vesting dates. The market and performance based LTIP RSUs are not participating securities for EPS purposes.

All of the LTIP Awards are subject to certain change in control and retirement eligibility provisions that may impact these vesting schedules.

• Retention Awards: On June 23, 2017, we issued 307,327 RSUs in the form of retention awards (the “Retention Awards”) each of which is a time-vesting award with service periods ranging from three to five years. The Retention Awards are participating securities for EPS purposes.

• Supplemental Bonus Plan: In October 2016, we established a supplemental bonus plan for certain key executives and employees (the “Supplemental Bonus Plan”). Pursuant to the Supplemental Bonus plan, the awards became payable and the payment amount became determinable upon the completion of the IPO. The $59,776 of awards were converted into 2,988,120 time-vesting RSUs that will generally vest in three equal annual installments, commencing on the completion of the INVH IPO and on the first and second anniversaries thereafter. The Supplemental Bonus Plan awards are participating securities for EPS purposes.

• IH6 Bonus Awards: In addition to the Class B Units granted by IH6 to certain individuals, these individuals were also granted bonus awards (the “IH6 Bonus Awards”) equal to $0.5 multiplied by the 9,650 IH6 Class B Units granted, entitling the recipients to receive bonus payments in connection with an IPO or exit event. Upon completion of the INVH IPO, the IH6 Bonus Awards became payable to the recipients and were converted into the right to receive shares of common stock. The $4,825 of awards were settled in the form of 241,250 RSUs that were fully vested upon issuance. The IH6 Bonus Awards are participating securities for EPS purposes.

• Director Awards: INVH issued $1,398 of awards, or 69,875 RSUs, to directors who are not our employees or employees of BREP VII. These awards will fully vest on the date scheduled for INVH’s 2018 annual shareholders meeting, subject to the director’s continued service on the board of directors through such date. The Director Awards are participating securities for EPS purposes.

The following tables summarize the status of non-vested RSUs and RSAs as of June 30, 2017 and changes during the period from January 31, 2017 through June 30, 2017:

	RSUs					RSAs					Total Share-Based Awards
	Number		Weighted Average Grant-Date Fair Value (Actual $)			Number		Weighted Average Grant-Date Fair Value (Actual $)			Number		Weighted Average Grant-Date Fair Value (Actual $)
Balance, January 1, 2017	—		$	—		—		$	—		—		$	—
Granted	4,467,409		20.53			62,529		15.50			4,529,938		20.46
Vested(1)	(1,446,351	)	(20.00		)	(54,729	)	(15.71		)	(1,501,080	)	(19.85		)
Forfeited	(83,909	)	(20.00		)	—		—			(83,909	)	(20.00		)
Balance, June 30, 2017	2,937,149		$	20.80		7,800		$	14.01		2,944,949		$	20.79

(1) All vested RSAs and RSUs are included in basic EPS for the period during which they are outstanding. However, the vested RSUs will not settle with the individual awardees until August 7, 2017, and therefore are not included in legally outstanding shares of common stock as of June 30, 2017.

34

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

During the period from January 31, 2017 through June 30, 2017, 54,729 RSAs and 1,446,351 RSUs with an estimated fair value of $29,845 fully vested. As of June 30, 2017, 641,719 RSUs included performance and market based criteria. Grant-date fair value of the RSAs and RSUs is generally based on the closing price of our common stock on the grant date. However, for the awards granted in connection with the IPO, the grant-date fair value is the opening offering price per common share, and the grant-date fair values for RSUs with market condition vesting criteria are based on Monte-Carlo option pricing models. The following table summarizes the significant inputs utilized in these models:

	June 30, 2017
Expected volatility(1)	25%
Risk-free rate	1.40%
Expected holding period (years)	0.52-2.52

(1) Expected volatility is estimated based on the leverage adjusted historical volatility of certain of our peer companies over a historical term commensurate with the remaining expected holding period.

Summary of Total Share-Based Compensation Expense

During the three months endedJune 30, 2017 and 2016, we recognized $8,216 and $4,106 respectively, of share-based compensation expense, comprised of the following:

	Share-Based Compensation Expense for the Three Months Ended June 30,
	2017				2016
	General and Administrative		Property Management Expense		General and Administrative		Property Management Expense
Class B Units	$	—	$	—	$	4,008	$	98
RSUs	6,876		1,336		—		—
RSAs	4		—		—		—
Total	$	6,880	$	1,336	$	4,008	$	98

During the six months endedJune 30, 2017 and 2016, we recognized $52,460 and $8,312 respectively, of share-based compensation expense, comprised of the following:

	Share-Based Compensation Expense for the Six Months Ended June 30,
	2017						2016
	General and Administrative			Property Management Expense			General and Administrative		Property Management Expense		Unrecognized Expense at June 30, 2017
Class B Units	$	11,998		$	3		$	8,059	$	253	$	—
RSUs	35,339			5,356			—		—		47,554
RSAs	(186		)	(50		)	—		—		19
Total	$	47,151		$	5,309		$	8,059	$	253	$	47,573

As of June 30, 2017, there was $47,573 of unrecognized share-based compensation expense related to non-vested RSUs and RSAs which is expected to be recognized over a weighted average period of 1.76 years.

35

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Note 11—Fair Value Measurements

The carrying amounts of restricted cash, certain components of other assets, accounts payable and accrued expenses, resident security deposits, and other liabilities approximate fair value due to the short maturity of these amounts. Our interest rate swap agreements are the only financial instruments recorded at fair value on a recurring basis within our condensed consolidated financial statements. The fair values of our interest rate caps and swaps, which are classified as Level 2 in the fair value hierarchy, are estimated using market values of instruments with similar attributes and maturities. See Note 7 for the details of the balance sheet classification and the fair values for the interest rate caps and swaps.

The following table displays the carrying values and fair values of financial instruments as of June 30, 2017 and December 31, 2016:

		June 30, 2017				December 31, 2016
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets carried at historical cost on the consolidated balance sheets
Investments in debt securities	Level 2	$	230,498	$	234,413	$	209,337	$	209,390
Liabilities carried at historical cost on the consolidated balance sheets
Mortgage loans(1)	Level 2	$	4,177,516	$	4,195,249	$	5,263,994	$	5,265,180
Term loan facility(2)	Level 3	1,500,000		1,501,248		—		—
Credit facilities(3)	Level 3	—		—		2,321,585		2,329,551

(1) The carrying values of the mortgage loans are shown net of discount and exclude $18,850 and $9,256 of deferred financing costs as of June 30, 2017 and December 31, 2016, respectively.

(2) The carrying value of the term loan facility excludes $13,471 of deferred financing costs as of June 30, 2017.

(3) The carrying values of the credit facilities exclude $6,044 of deferred financing costs as of December 31, 2016.

The fair values of our investments in debt securities and of our mortgage loans, which are classified as Level 2 in the fair value hierarchy, are estimated based on market bid prices of comparable instruments at the end of the period. The fair values of our credit facilities and Term Loan Facility, which are classified as Level 3 in the fair value hierarchy, are estimated using a discounted cash flow methodology based on market interest rate data and other market factors available at the end of the period.

Our assets measured at fair value on a nonrecurring basis are those assets for which we have recorded impairments. The assets for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017			2016
Investments in single-family residential properties, net held for use (Level 3)
Pre-impairment amount	$	—	$	1,057		$	496		$	1,057
Total impairments	—		(229		)	(267		)	(229		)
Fair value	$	—	$	828		$	229		$	828

36

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Investments in single-family residential properties, net held for sale (Level 3)
Pre-impairment amount	$	885		$	3,959		$	8,127		$	3,959
Total impairments	(95		)	(290		)	(865		)	(290		)
Fair value	$	790		$	3,669		$	7,262		$	3,669

For additional information related to our single-family residential properties during the three and six months endedJune 30, 2017 and 2016, refer to Note 3.

Note 12—Earnings per Share

We compute EPS only for the period our common stock was outstanding during 2017, referred to as the Post-IPO period. We have defined the Post-IPO period as February 1, 2017, the date our shares began trading on the New York Stock Exchange, through June 30, 2017, or 91 and 150 days of activity, respectively, for the three months endedJune 30, 2017, and for the Post-IPO period. Basic EPS is computed by dividing the net loss available to common shareholders for the Post-IPO period by the weighted average number of shares outstanding during the Post-IPO period, adjusted for non-vested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of non-vested RSUs and RSAs except when doing so would be anti-dilutive.

All outstanding non-vested RSUs and RSAs that have nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating securities according to dividends or dividend equivalent and participation rights in undistributed earnings in periods when we have net income. Certain of our non-vested RSUs and RSAs are considered participating securities as identified in Note 10.

Basic and diluted EPS are calculated as follows:

(in thousands, except share and per share data)	Three Months Ended June 30, 2017		February 1, 2017 through June 30, 2017
Numerator:
Net income (loss) available to common shareholders — basic and diluted	$	5,420	$	(20,092	)
Denominator:
Weighted average common shares outstanding — basic	311,771,221		311,723,463
Weighted average common shares outstanding — diluted	312,271,578		311,723,463
Net income (loss) per common share — basic	$	0.02	$	(0.06	)
Net income (loss) per common share — diluted	$	0.02	$	(0.06	)

For the three months ended June 30, 2017, 35,770incremental shares attributed to non-vested RSUs and RSAs were excluded from the computation of diluted EPS because they would be anti-dilutive. For the period from February 1, 2017 through June 30, 2017, 445,595 incremental attributed to non-vested RSUs and RSAs were excluded from the computation of diluted EPS because we had a net loss for the period.

37

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

Note 13—Income Tax

We account for income taxes under the asset and liability method. For the TRSs, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We provide a valuation allowance, from time to time, for deferred tax assets for which we do not consider realization of such assets to be more likely than not.

As of June 30, 2017, there were no deferred tax assets and liabilities or unrecognized tax benefits recorded. We do not anticipate a significant change in unrecognized tax benefits within the next 12 months.

During the six months endedJune 30, 2017, we sold assets subject to Section 337(d) of the Code (see additional discussion in Note 2). These transactions resulted in $1,987 of current income tax expense which has been recorded in gain on sale of property, net of tax on the condensed consolidated statement of operations.

Note 14—Commitments and Contingencies

Insurance Policies

Pursuant to the terms of our credit facility agreements and mortgage loan agreements (see Note 6), laws and regulations of the jurisdictions in which our properties are located, and general business practices, we are required to procure insurance on our properties. For the six months endedJune 30, 2017 and 2016, no material uninsured losses have been incurred with respect to the properties.

Legal Matters

We are subject to various legal proceedings and claims that arise in the ordinary course of our business. We accrue a liability when we believe that it is both probable that a liability has been incurred and that we can reasonably estimate the amount of the loss. We do not believe that the final outcome of these proceedings or matters will have a material adverse effect on our condensed consolidated financial statements.

Note 15—Subsequent Events

In connection with the preparation of the accompanying condensed consolidated financial statements, we have evaluated events and transactions occurring after June 30, 2017, for potential recognition or disclosure.

Proposed Merger

On August 9, 2017, we entered into a definitive agreement with Starwood Waypoint Homes (“SFR”) to form a combined company in a stock-for-stock merger of equals transaction. Under the terms of the agreement, each SFR share will be converted into 1.614 shares of our common stock based on a fixed exchange ratio. Upon the closing of the transaction, our stockholders will own approximately 59% of the combined company’s stock, while SFR’s stockholders will own approximately 41% of the combined company’s stock. The transaction is expected to close by year end and is subject to approval by SFR’s stockholders and other customary closing conditions.

Dividend Declarations

On August 3, 2017, the board of directors declared an $0.08dividend per share to stockholders of record on August 15, 2017, which is payable on August 31, 2017.

Extensions of Existing Mortgage Loans

On July 12, 2017, we exercised our first one-year extension option on IH2 2015-3, extending the maturity from August 9, 2017 to August 9, 2018.

38

INVITATION HOMES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands)

(unaudited)

On August 3, 2017, we exercised our secondone-year extension option on IH1 2014-2, extending the maturity from September 9, 2017 to September 9, 2018.

Residential Property Dispositions

Between July 1, 2017 and August 7, 2017, we disposed of 47 homes with a net carrying amount of $7,105 as of June 30, 2017, for an aggregate net sales price of $8,716. A portion of the proceeds were used to make various prepayments on our mortgage loans totaling $848. At June 30, 2017, 42 of these properties were classified as held for sale and presented in other assets, net and five were classified as investments in single-family residential properties on our condensed consolidated balance sheet.

39

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the information appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2016. This discussion and analysis contains forward-looking statements based upon our current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set further under Part I. Item 1A. “Risk Factors” in our most recent Annual Report on Form 10-K as updated by our other periodic reporting.

Capitalized terms used without definition have the meaning provided elsewhere in this Quarterly Report on Form 10-Q.

Overview

Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes in desirable neighborhoods across America. With nearly 50,000 homes for lease in 13 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. Our mission, “Together with you, we make a house a home,” reflects our commitment to high-touch service that continuously enhances residents’ living experiences and provides homes where individuals and families can thrive.

We have selected locations with strong demand drivers, high barriers to entry and high rent-growth potential, primarily in the Western United States and Florida. Through disciplined market and asset selection, we designed our portfolio to capture the operating benefits of local density as well as economies of scale that we believe cannot be readily replicated. Since our founding in 2012, we have built a proven, vertically integrated operating platform that allows us to effectively and efficiently acquire, renovate, lease, maintain and manage our homes.

We invest in markets that we expect will exhibit lower new supply, stronger job and household formation growth and superior NOI growth relative to the broader U.S. housing and rental market. Within our 13 markets, we target attractive neighborhoods in in-fill locations with multiple demand generators, such as proximity to major employment centers, desirable schools and transportation corridors. Our homes average approximately 1,860 square feet with three bedrooms and two bathrooms, appealing to a resident base that we believe is less transitory than the typical multifamily resident. We have made approximately $1.2 billion of upfront renovation investment in the homes in our portfolio, representing approximately $25,000 per home, in order to address capital needs, reduce ongoing maintenance costs and drive resident demand. As a result, our portfolio benefits from high occupancy and low turnover rates, and we are well positioned to drive strong rent growth, attractive margins and predictable cash flows.

Reorganization and Initial Public Offering

On January 31, 2017, we and our Pre-IPO Owners effected certain transactions (the “Pre-IPO Transactions”) that resulted in the Operating Partnership holding, directly or indirectly, all of the assets, liabilities, and results of operations reflected in our condensed consolidated financial statements, including the full portfolio of homes held by the IH Holding Entities. As a result of the Pre-IPO Transactions, the Operating Partnership is wholly owned by Invitation Homes Inc. (“INVH”) directly and through its wholly owned subsidiary, Invitation Homes OP GP LLC, which serves as the Operating Partnership’s sole general partner.

The Pre-IPO Transactions have been accounted for as a reorganization of entities under common control utilizing historical cost basis. Accordingly, after January 31, 2017, our condensed consolidated financial statements include the accounts of INVH and its wholly owned subsidiaries. Prior to that date, our condensed combined financial statements include the combined accounts of the Operating Partnership and the IH Holding Entities and their wholly owned subsidiaries.

On February 6, 2017, INVH completed an initial public offering of 88,550,000 shares of common stock at a price to the public of $20.00 per share (the “IPO”). An additional 221,826,634 shares of common stock were issued to the Pre-IPO Owners.

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Our Portfolio

The following table provides summary information regarding our total and Same Store portfolio as of and for the period endedJune 30, 2017 as noted below:

Market	Number of Homes(1)	Average Occupancy(2)		Average Monthly Rent(3)		Average Monthly Rent PSF(3)		% of Revenue(4)
Western United States
Southern California	4,625	95.0	%	$	2,252	$	1.32	12.5	%
Northern California	2,857	96.3	%	1,765		1.12		6.7	%
Seattle	3,203	96.0	%	1,945		1.02		8.3	%
Phoenix	5,425	95.7	%	1,170		0.74		8.2	%
Las Vegas	959	94.5	%	1,453		0.75		1.7	%
Western United States Subtotal	17,069	95.6	%	1,723		1.02		37.4	%
Florida
South Florida	5,591	93.8	%	2,178		1.13		14.6	%
Tampa	4,900	95.2	%	1,590		0.81		9.7	%
Orlando	3,707	95.3	%	1,522		0.79		7.0	%
Jacksonville	1,958	95.3	%	1,565		0.78		3.8	%
Florida Subtotal	16,156	94.7	%	1,773		0.91		35.1	%
Southeast United States
Atlanta	7,293	95.2	%	1,379		0.67		12.6	%
Charlotte	3,110	94.9	%	1,385		0.69		5.3	%
Southeast United States Subtotal	10,403	95.1	%	1,381		0.67		17.9	%
Midwest United States
Chicago	2,915	93.2	%	2,022		1.20		7.0	%
Minneapolis	1,182	95.3	%	1,770		0.89		2.6	%
Midwest United States Subtotal	4,097	93.8	%	1,948		1.10		9.6	%
Total/Average	47,725	95.0	%	$	1,683	$	0.90	100.0	%
Same Store Portfolio Total/Average	42,904	95.9	%	$	1,688	$	0.91	90.7	%

(1) As of June 30, 2017.

(2) Represents average occupancy for the three months ended June 30, 2017.

(3) Represents average monthly rent for the three months ended June 30, 2017.

(4) Represents the percentage of total revenue generated in each market for the three months ended June 30, 2017.

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Factors That Affect Our Results of Operations and Financial Condition

Our results of operations and financial condition are affected by numerous factors, many of which are beyond our control. Key factors that impact our results of operations and financial condition include market fundamentals, property acquisitions and renovations, rental rates and occupancy levels, turnover and days to re-resident homes, property improvements and maintenance, and financing arrangements.

Market Fundamentals:Our results are impacted by housing market fundamentals and supply and demand conditions in our markets, particularly in the Western United States and Florida, which represented 72.5% of our revenues during the three months ended June 30, 2017. In recent periods, our Western United States and Florida markets have experienced favorable demand fundamentals in the form of employment growth and household formation rates and favorable supply fundamentals such as the rate of new supply delivery. We believe these favorable supply and demand fundamentals have driven strong rental rate growth and home price appreciation for our Western United States and Florida markets in recent periods and we expect these trends to continue in the near to intermediate term.

Rental Rates and Occupancy Levels: Rental rates and occupancy levels are primary drivers of rental revenues and other property income. Our rental rates and occupancy levels are affected by macroeconomic factors and local and property-level factors, including market conditions, seasonality, resident defaults, and the amount of time it takes to prepare a home for its next resident and re-lease homes when residents vacate. An important driver of rental rate growth is our ability to increase monthly rents from expiring leases, which typically have a term of one to two years.

Turnover and Days to Re-Resident: Other drivers of rental revenues and property operating and maintenance expense include increasing the length of stay of our residents, minimizing resident turnover rates, and reducing the number of days a home is unoccupied between residents. Our operating results also are impacted by the amount of time it takes to market and lease a property. The period of time to market and lease a property can vary greatly and is impacted by local demand, our marketing techniques, the size of our available inventory, and economic conditions and outlook. Increases in turnover rates and the average number of days to re-resident increase property operating and maintenance expenses and reduce rental revenues as the homes are not generating income during this period.

Property Improvements and Maintenance: Property improvements and maintenance impact capital expenditures, property operating and maintenance expense, and rental revenues. We actively manage our homes on a total portfolio basis to determine what capital and maintenance needs may be required, and what opportunities we may have to generate additional revenues or expense savings from such expenditures. Due to our size and scale both nationally and locally, we believe we are able to purchase goods and services at favorable prices.

Property Acquisitions and Renovations: Future growth in rental revenues and operating income may be impacted by our ability to identify and acquire homes, our pace of property acquisitions, and the time and cost required to renovate and lease a newly acquired home. Our ability to identify and acquire single-family homes that meet our investment criteria is impacted by home prices in targeted acquisition locations, the inventory of homes available for sale through our acquisition channels, and competition for our target assets. The acquisition of homes involves expenditures in addition to payment of the purchase price, including payments for acquisition fees, property inspections, closing costs, title insurance, transfer taxes, recording fees, broker commissions, property taxes and HOA fees (when applicable). Additionally, we typically incur costs to renovate a home to prepare it for rental. Renovation work varies, but may include paint, flooring, carpeting, cabinetry, appliances, plumbing hardware, roof replacement, HVAC replacement, and other items required to prepare the home for rental. The time and cost involved in accessing our homes and preparing them for rental can significantly impact our financial performance. The time to renovate a newly acquired property can vary significantly among homes for several reasons, including the property’s acquisition channel, the condition of the property, and whether the property was vacant when acquired. Due to our size and scale both nationally and locally, we believe we are able to purchase goods and services at favorable prices.

Financing Arrangements: Financing arrangements directly impact our interest expense, mortgage loans, term loan facility, and revolving facility, as well as our ability to acquire and renovate homes. We have historically utilized indebtedness to acquire and renovate new homes. Our current financing arrangements contain financial covenants, and certain financing arrangements contain variable interest rate terms. Interest rates are impacted by the characteristics of our homes, market conditions, and the terms of the underlying financing arrangements. See Item 3. “Quantitative and Qualitative Disclosures about Market Risk” for further discussion regarding interest rate risk. Our future financing arrangements may not have similar terms with respect to amounts, interest rates, financial covenants, and durations.

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Recent Events

Initial Public Offering

On February 6, 2017, we completed our IPO in which we sold 88,550,000 shares of common stock at an initial public offering price of $20.00 per share. The shares offered and sold in the offering were registered under the Securities Act pursuant to our Registration Statement on Form S-11, which was declared effective by the SEC on January 31, 2017. The common stock is listed on the NYSE under the symbol "INVH" and began trading publicly on February 1, 2017. The offering generated net proceeds of $1,692.1 million to us after underwriting discounts, but before other transaction costs. We used a portion of the net proceeds, together with the borrowings under the Term Loan Facility of our New Credit Facility (described below), to repay all of our existing credit facilities and our mortgage loan relating to the IH1 2013-1 securitization and a portion of the mortgage loan relating to the IH1 2014-1 securitization transaction, and to pay fees and expenses related to the offering.

In March 2017, we used the remaining IPO proceeds, together with cash on hand, to voluntarily prepay approximately $260.0 million of additional borrowings outstanding under the mortgage loan relating to the IH1 2014-1 securitization transaction, reducing the outstanding principal balance to approximately $421.0 million.

New Credit Facility

On February 6, 2017, the Operating Partnership entered into a new credit agreement with the lenders party thereto, Bank of America, N.A., as administrative agent and the other parties party thereto. The new credit agreement provides for senior secured credit facilities (together, collectively, the “New Credit Facility”) consisting of (i) a $1,000.0 million revolving facility (the “Revolving Facility”), which will mature on February 6, 2021, with a one-year extension option subject to certain conditions and (ii) a $1,500.0 million “Term Loan Facility,” which will mature on February 6, 2022. See “—Liquidity and Capital Resources.”

Fannie Mae Securitization Transaction

On April 28, 2017, we completed a securitization transaction pursuant to which we entered into a loan agreement, providing for a new ten-year, fixed rate mortgage loan comprised of two components with a total principal amount of $1,000.0 million (the “FNMA Loan”). The FNMA Loan will mature June 9, 2027 and is secured by first priority mortgages on a portfolio of 7,204 of our homes. See “—Liquidity and Capital Resources.”

We used proceeds from the FNMA Loan to repay the remaining $420.0 million outstanding under our mortgage loan relating to the IH1 2014-1 securitization transaction, to fund certain reserves and to pay transaction fees and expenses incurred with respect to the FNMA Loan. The IH1 2014-1 mortgage loan outstanding balance had been reduced as of April 28, 2017 due to prepayments from IPO proceeds and application of proceeds from sales of homes. On May 9, 2017, we used the remaining proceeds to voluntarily prepay $510.0 million of our mortgage loan relating to the IH1 2014-3 securitization transaction. On June 9, 2017, we made a $100.0 million prepayment, reducing the outstanding principal balance to approximately $151.0 million.

Dividend Declarations

On May 31, 2017 we paid a$0.06dividend per share; and on August 3, 2017, we declared an $0.08dividend per share to stockholders of record on August 15, 2017, which is payable on August 31, 2017.

Proposed Merger

On August 9, 2017, we entered into a definitive agreement with Starwood Waypoint Homes (“SFR”) to form a combined company in a stock-for-stock merger of equals transaction. Under the terms of the agreement, each SFR share will be converted into 1.614 shares of our common stock based on a fixed exchange ratio. Upon the closing of the transaction, our stockholders will own approximately 59% of the combined company’s stock, while SFR’s stockholders will own approximately 41% of the combined company’s stock. The transaction is expected to close by year end and is subject to approval by SFR’s stockholders and other customary closing conditions.

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Components of Revenues and Expenses

The following is a description of the components of our revenues and expenses:

Revenues

Rental Revenues

Rental revenues, net of any concessions and uncollectible amounts, consist of rents collected under lease agreements related to our single-family homes for lease. These include leases that we enter into directly with our residents, which typically have a term of one to two years.

Other Property Income

Other property income is comprised of: (i) resident reimbursements for utilities, HOA fines, and other charge-backs; (ii) rent and non-refundable deposits associated with pets; and (iii) various other fees including application and lease termination fees.

Expenses

Property Operating and Maintenance

Once a property is available for its initial lease, which we refer to as “rent-ready,” we incur ongoing property-related expenses, which consist primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, utility expenses, repairs and maintenance, leasing costs and marketing. Prior to a property being “rent-ready,” certain of these expenses are capitalized as building and improvements. Once a property is “rent-ready,” expenditures for ordinary maintenance and repairs thereafter are expensed as incurred and we capitalize expenditures that improve or extend the life of a home.

Property Management Expense

Property management expense represents personnel and other costs associated with the oversight and management of our portfolio of homes. All of our homes are managed through our internal property manager.

General and Administrative

General and administrative expense represents personnel costs, professional fees, and other costs associated with our day to day activities. We have incurred additional legal, accounting and other expenses that we have not incurred as a private company, including costs associated with public company reporting requirements. As a result, general and administrative expense in the historical periods discussed in “—Results of Operations” may not be comparable to general and administrative expense in periods from and after the IPO.

Share-Based Compensation Expense

Certain current and former employees, as well as certain of our founders, were granted Class B incentive units in certain of the IH Holding Entities or their parent entities. In connection with the IPO, all of the Class B units were converted into shares of common stock, canceled, or converted into similar units of newly formed subsidiaries of the Pre-IPO Owners. We have recognized incentive compensation expense related to the value of those units in our results of operations. In connection with and subsequent to the IPO, we modified certain of our incentive awards and issued new awards in order to align our employees’ interests with those of our investors. All incentive unit and share-based compensation expense is recognized on our statements of operations as a component of general and administrative expense and property management expense.

Depreciation and Amortization

We recognize depreciation and amortization expense associated primarily with our homes and other capital expenditures over their expected useful lives.

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Impairment and Other

Impairment and other represents provisions for impairment when the carrying amount of our single-family residential properties is not recoverable and casualty losses, net of any insurance recoveries.

Interest Expense

Interest expense includes interest expense as well as amortization of discounts and deferred financing costs from our financing arrangements, and unrealized gains (losses) on non-designated hedging instruments. Interest expense for periods prior to the IPO and our 2017 refinancing activity discussed in “—Recent Events” does not reflect the impact of the following: (i) certain financing transactions that we completed concurrently with the completion of the IPO; (ii) certain hedging instruments ; (iii) the FNMA Loan that was entered into on April 28, 2017 as defined in “—Liquidity and Capital Resources”; or (iv) the repayment of certain indebtedness with a portion of the net proceeds from the IPO, the New Credit Facility, and the FNMA Loan.

Other, net

Other, net includes interest income, other miscellaneous income and expenses, and acquisition costs (in periods prior to January 1, 2017).

Gain (Loss) on Sale of Property, net of tax

Gain (loss) on sale of property, net of tax consists of net gains and losses resulting from sales of our homes.

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Results of Operations

Three Months Ended June 30, 2017 Compared to Three Months Ended June 30, 2016

The following table sets forth a comparison of the results of operations for the three months endedJune 30, 2017 and 2016:

	Three Months Ended June 30,
($ in thousands)	2017			2016			$ Change			% Change
Revenues:
Rental revenues	$	228,504		$	219,354		$	9,150		4.2	%
Other property income	13,712			11,142			2,570			23.1	%
Total revenues	242,216			230,496			11,720			5.1	%
Operating expenses:
Property operating and maintenance	92,840			91,281			1,559			1.7	%
Property management expense	9,135			7,530			1,605			21.3	%
General and administrative	18,426			15,408			3,018			19.6	%
Depreciation and amortization	67,515			66,079			1,436			2.2	%
Impairment and other	706			546			160			29.3	%
Total operating expenses	188,622			180,844			7,778			4.3	%
Operating income	53,594			49,652			3,942			7.9	%
Other income (expenses):
Interest expense	(57,358		)	(70,523		)	(13,165		)	(18.7	)%
Other, net	(869		)	185			1,054			N/M
Total other income (expenses)	(58,227		)	(70,338		)	12,111			17.2	%
Loss from continuing operations	$	(4,633	)	$	(20,686	)	$	16,053		77.6	%

Rental Revenues

As of June 30, 2017 and 2016, we owned 47,725 and 48,353 single-family homes for lease, respectively, generating rental revenue of $228.5 million and $219.4 million, respectively, for the three months then ended. Rental revenues increased4.2% due to an increase in average monthly rent per occupied home, despite a decrease in number of homes owned and a decrease in occupancy. During the three months endedJune 30, 2017 and 2016, we acquired 229 and 413 homes, respectively, and sold 422 and 74 homes, respectively.

Average occupancy for the total portfolio was 95.0% and 95.1% for the three months endedJune 30, 2017 and 2016, respectively. Average rent per occupied home in actual dollars for the three months endedJune 30, 2017 was $1,683, compared to $1,603 for the three months endedJune 30, 2016, a 5.0% increase.

For our Same Store portfolio, our average occupancy was 95.9% and 96.4% for the three months endedJune 30, 2017 and 2016, respectively, and our average rent per occupied home in actual dollars for the three months endedJune 30, 2017, was $1,688, compared to $1,618 for the three months endedJune 30, 2016, a 4.3% increase.

To monitor prospective changes in average rent per occupied home, we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home, in each case, net of any amortized concessions. Leases are either renewal leases, where our current resident stays 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. The following information regarding our renewal leases and new leases is with respect to our total portfolio. For the three months endedJune 30, 2017 and 2016, renewal lease net

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effective rental rate growth for the total portfolio averaged 5.1% and 5.5%, respectively. For the three months endedJune 30, 2017 and 2016, new lease net effective rental rate growth for the total portfolio averaged 5.0% and 7.3%, respectively.

For the three months endedJune 30, 2017 and 2016, the turnover rate for our Same Store portfolio was 38.7% and 38.8%, respectively. For our total portfolio, an average home remained unoccupied for 41 and 35 days between residents for the three months endedJune 30, 2017 and 2016, respectively.

Other Property Income

For the three months endedJune 30, 2017 and 2016, other property income was $13.7 million and $11.1 million, respectively, a 23.1%increase. The primary drivers of the increase were pet rent and late fee income attributable to the implementation of our national lease for all leases written beginning in February 2016 and the automation and consistent application of these fees beginning in March 2017.

Operating Expenses

Operating expenses were $188.6 million and $180.8 million for the three months endedJune 30, 2017 and 2016, respectively, a 4.3%increase. Of the $7.8 millionincrease in expenses, $4.1 million relates to share-based compensation expense as more fully described below. Set forth below is a discussion of changes in the individual components of operating expenses.

Property operating and maintenance expense increased to $92.8 million for the three months endedJune 30, 2017 from $91.3 million for the three months endedJune 30, 2016 primarily due to an increase in property taxes of $4.3 million which represents a 11.5% increase in those costs. The increase in these costs is largely attributable to supplemental California property taxes resulting from our IPO. These costs were partially offset by a $2.4 million decrease in personnel expenses.

Property management expense and general and administrative expense increased to $27.6 million for the three months endedJune 30, 2017 from $22.9 million for the three months endedJune 30, 2016. An increase in share-based compensation expense of $4.1 million for the three months endedJune 30, 2017 compared to June 30, 2016 drove the majority of the variance.

Depreciation and amortization expense increased due to a higher average cost basis per home at June 30, 2017 compared to June 30, 2016 driven by improvements capitalized over the past 12 months.

Interest Expense

Interest expense was $57.4 million and $70.5 million for the three months endedJune 30, 2017 and 2016, respectively, an 18.7%decrease. The decrease in interest expense was due to a reduction in average debt balances outstanding. The decrease in interest expense was partially offset by an increase in our weighted average cost of debt by 87 bps for the three months endedJune 30, 2017 compared to 2016 due to an increase in LIBOR, a fixed rate on our IH1 2017-1 mortgage loan which was at a higher rate than prior year variable rate debt, and the impact of interest rate swaps. As of June 30, 2017, we had $5,645.2 million of debt outstanding, net of deferred financing costs and discounts, compared to $7,693.8 million as of June 30, 2016, a 26.6% decrease. The decrease in debt outstanding was attributable to the $2,321.6 million payoff of our credit facilities, as well as $2,083.0 million of prepayments on our mortgage loans from cash from IPO proceeds, operations, and proceeds from home sales, net of borrowings of $1,500.0 million from the Term Loan Facility and $996.4 million from the IH1 2017-1 mortgage loan.

Gain on Sale of Property, Net of Tax

Gain on sale of property, net of tax was $10.2 million and $1.0 million for the three months endedJune 30, 2017 and 2016, respectively. Of the 422 homes sold during the three months endedJune 30, 2017, 219 were sold in one bulk transaction for a gain of $2.7 million. The additional 203 homes sold in the three months endedJune 30, 2017, sold for a net gain of $7.5 million, in comparison to the 74 homes sold during thethree months endedJune 30, 2016 for a net gain of $1.0 million. The primary driver for the difference in the gain on sale between periods was the volume and composition of homes sold during the respective periods.

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Results of Operations

Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016

The following table sets forth a comparison of the results of operations for the six months endedJune 30, 2017 and 2016:

	Six Months Ended June 30,
($ in thousands)	2017			2016			$ Change			% Change
Revenues:
Rental revenues	$	454,600		$	433,677		$	20,923		4.8	%
Other property income	26,366			21,321			5,045			23.7	%
Total revenues	480,966			454,998			25,968			5.7	%
Operating expenses:
Property operating and maintenance	181,008			176,248			4,760			2.7	%
Property management expense	20,584			14,923			5,661			37.9	%
General and administrative	76,692			30,768			45,924			149.3	%
Depreciation and amortization	135,092			131,781			3,311			2.5	%
Impairment and other	1,910			363			1,547			426.2	%
Total operating expenses	415,286			354,083			61,203			17.3	%
Operating income	65,680			100,915			(35,235		)	(34.9	)%
Other income (expenses):
Interest expense	(125,930		)	(140,800		)	(14,870		)	(10.6	)%
Other, net	(1,095		)	32			1,127			N/M
Total other income (expenses)	(127,025		)	(140,768		)	(13,743		)	(9.8	)%
Loss from continuing operations	$	(61,345	)	$	(39,853	)	$	(21,492	)	(53.9	)%

Rental Revenues

As of June 30, 2017 and 2016, we owned 47,725 and 48,353 single-family homes for lease, respectively, generating rental revenue of $454.6 million and $433.7 million, respectively, for the six months then ended. Rental revenues increased4.8% due to an increase in both average occupancy and average monthly rent per occupied home, despite a slight decrease in number of homes owned. During the six months endedJune 30, 2017 and 2016, we acquired 350 and 926 homes, respectively, and sold 923 and 711 homes, respectively.

Average occupancy for the total portfolio was 95.0% and 94.8% for the six months endedJune 30, 2017 and 2016, respectively. The increase in average occupancy correlates with the decrease in the number of homes acquired during 2017 compared to 2016 as newly acquired homes are unoccupied for a longer period of time during initial renovations than during a re-resident period. Average rent per occupied home in actual dollars for the six months endedJune 30, 2017 was $1,672, compared to $1,588 for the six months endedJune 30, 2016, a 5.3% increase.

For our Same Store portfolio, our average occupancy was 95.8% and 96.4% for the six months endedJune 30, 2017 and 2016, respectively, and our average rent per occupied home in actual dollars for the six months endedJune 30, 2017, was $1,678, compared to $1,607 for the six months endedJune 30, 2016, a 4.4% increase.

To monitor prospective changes in average rent per occupied home, we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home, in each case, net of any amortized concessions. Leases are either renewal leases, where our current resident stays 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. The following information regarding our renewal leases

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and new leases is with respect to our total portfolio. For the six months endedJune 30, 2017 and 2016, renewal lease net effective rental rate growth for the total portfolio averaged 5.2% and 5.4%, respectively. For the six months endedJune 30, 2017 and 2016, new lease net effective rental rate growth for the total portfolio averaged 4.3% and 6.1%, respectively.

For the six months endedJune 30, 2017 and 2016, the turnover rate for our Same Store portfolio was 35.2% and 34.9%, respectively. For our total portfolio, an average home remained unoccupied for 47 and 40 days between residents for the six months endedJune 30, 2017 and 2016, respectively.

Other Property Income

For the six months endedJune 30, 2017 and 2016, other property income was $26.4 million and $21.3 million, respectively, a 23.7%increase. The primary drivers of the increase were pet rent and late fee income attributable to the implementation of our national lease for all leases written beginning in February 2016 and the automation and consistent application of these fees beginning in March 2017.

Operating Expenses

Operating expenses were $415.3 million and $354.1 million for the six months endedJune 30, 2017 and 2016, respectively, a 17.3%increase. Of the $61.2 millionincrease in expenses, $44.1 million relates to share-based compensation expense and $8.3 million relates to offering related costs as more fully described below. Set forth below is a discussion of changes in the individual components of operating expenses.

Property operating and maintenance expense increased to $181.0 million for the six months endedJune 30, 2017 from $176.2 million for the six months endedJune 30, 2016 primarily due to an increase in property taxes of $7.3 million which represents a 9.7% increase in those costs. More than half of the increase in these costs is attributable to supplemental California property taxes resulting from our IPO. This increase was partially offset by a $4.4 million decrease in personnel expenses.

Property management expense and general and administrative expense increased to $97.3 million for the six months endedJune 30, 2017 from $45.7 million for the six months endedJune 30, 2016. An increase in share-based compensation expense of $44.1 million for the six months endedJune 30, 2017, was driven by $12.0 million of vesting of Class B Units and $39.4 million of awards issued in connection with the IPO. Additionally, $8.3 million of IPO readiness costs and other offering costs were incurred during the six months endedJune 30, 2017.

Depreciation and amortization expense increased due to a higher average cost basis per home at June 30, 2017 compared to June 30, 2016 driven by improvements capitalized over the past 12 months.

Interest Expense

Interest expense was $125.9 million and $140.8 million for the six months endedJune 30, 2017 and 2016, respectively, a 10.6%decrease. The decrease in interest expense was due to a reduction in average debt balances outstanding, which was offset by an increase in our weighted average cost of debt by 75 bps due to an increase in LIBOR for the six months endedJune 30, 2017 compared to 2016 due to an increase in LIBOR, a fixed rate on our IH1 2017-1 mortgage loan which was at a higher rate than prior year variable rate debt, and the impact of interest rate swaps. Additionally, there was an increase in the fair value mark to market adjustment of $3.8 million related to the interest rate swaps during 2017. As of June 30, 2017, we had $5,645.2 million of debt outstanding, net of deferred financing costs and discounts, compared to $7,693.8 million as of June 30, 2016, a 26.6% decrease. The decrease in debt outstanding was attributable to the $2,321.6 million payoff of our credit facilities, as well as $2,083.0 million of prepayments on our mortgage loans from cash from IPO proceeds, operations, and proceeds from home sales, net of borrowings of $1,500.0 million from the Term Loan Facility and $996.4 million from the IH1 2017-1 mortgage loan.

Gain on Sale of Property, Net of Tax

Gain on sale of property, net of tax was $24.5 million and $10.2 million for the six months endedJune 30, 2017 and 2016, respectively. Of the 923 homes sold during the six months endedJune 30, 2017, 454 were sold in two bulk transaction for a gain of $9.5 million. The additional 469 homes sold in the six months endedJune 30, 2017, sold for a net gain of

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$15.0 million. Of the 711 homes sold during thesix months endedJune 30, 2016, 590 homes were sold in one bulk sale transaction for a gain of $9.4 million. The additional 121 homes sold in the six months endedJune 30, 2016 sold at a net gain of $1.0 million. The primary driver for the difference in the gain on sale between periods was the composition of homes sold during the respective periods.

Liquidity and Capital Resources

Our liquidity and capital resources as of June 30, 2017 and December 31, 2016 included unrestricted cash and cash equivalents of $158.9 million and $198.1 million, respectively, a 19.8%decrease due primarily to repayments of certain of our indebtedness which is discussed in further detail in “—Cash Flows.” As of June 30, 2017 and through the date of this filing, the total balance of our $1,000.0 million Revolving Facility is available for any liquidity requirements.

Liquidity is a measure of our ability to meet potential cash requirements, maintain our assets, fund our operations, make distributions and dividend payments to our equity investors and meet other general requirements of our business. Our liquidity, to a certain extent, is subject to general economic, financial, competitive and other factors beyond our control. Our near-term liquidity requirements consist primarily of: (i) renovating newly-acquired homes; (ii) funding HOA fees (as applicable), real estate taxes, insurance premiums and the ongoing maintenance for our homes; (iii) interest expense; and (iv) payment of dividends to our equity investors. Our long-term liquidity requirements consist primarily of funds necessary to pay for the acquisition of and non-recurring capital expenditures for our homes and principal payments on our indebtedness.

We will seek to satisfy our long-term liquidity needs through cash provided by operations, long-term secured and unsecured borrowings, the issuance of debt and equity securities, and property dispositions. We have financed our operations and acquisitions to date through cash provided by operations, capital contributions from the Pre-IPO Owners, and financing arrangements. We believe our rental income net of operating expenses will generally provide cash flow sufficient to fund our operations and distributions and dividend payments on a near-term basis. Our real estate assets are illiquid in nature. A timely liquidation of assets may not be a viable source of short-term liquidity should a cash flow shortfall arise, and we may need to source liquidity from other financing alternatives, such as the Revolving Facility.

As a REIT, INVH is required to distribute to its shareholders at least 90% of its taxable income, excluding net capital gain, on an annual basis. Therefore, as a general matter, it is unlikely that we will be able to retain substantial cash balances that could be used to meet our liquidity needs from our annual taxable income. Instead, we will need to meet these needs from external sources of capital and amounts, if any, by which our cash flow generated from operations exceeds taxable income.

We have historically utilized credit facilities, mortgage loans and warehouse loans from our Sponsor to fund acquisitions and renovation improvements. As of June 30, 2017, we have repaid all outstanding borrowings under the credit facilities, the IH1 2013-1 mortgage loan, the IH1 2014-1 mortgage loan, and the warehouse loans. As further described and defined below, we entered into a New Credit Facility on February 6, 2017 which includes a $1,000.0 million revolving line of credit component that is currently undrawn and a fully drawn $1,500.0 million term loan component. On April 28, 2017, we entered into a $1,000.0 million FNMA Loan (as defined in “—Securitization Transactions”) and used net proceeds to repay all obligations outstanding under the existing IH1 2014-1 mortgage loan and to make voluntary prepayments totaling $510.0 million on the IH1 2014-3 mortgage loan.

Mortgage Loans

As of June 30, 2017, we have completed eight securitization transactions (the “Securitizations” or the “mortgage loans”) collateralized by homes owned by the respective Invitation Homes Borrower Entities. The proceeds from the mortgage loans were used to fund (i) partial repayments of the then-outstanding IH1 and IH2 credit facilities and other securitizations, (ii) initial deposits in the reserve accounts, (iii) closing costs in connection with the mortgage loans, (iv) general costs associated with our operations, and (v) distributions and dividends to the Pre-IPO Owners.

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The following table sets forth a summary of the mortgage loan indebtedness as of June 30, 2017 and December 31, 2016:

					Outstanding Principal Balance(4)
($ in thousands)	Maturity Date	Maturity Date if Fully Extended(2)	Rate(3)	Range of Spreads	June 30, 2017(5)			December 31, 2016
IH1 2013-1	N/A	N/A	N/A	115-365 bps	$	—		$	462,431
IH1 2014-1	N/A	N/A	N/A	100-375 bps	—			978,231
IH1 2014-2(1)(6)	September 9, 2018	September 9, 2019	3.13%	110-400 bps	704,523			710,664
IH1 2014-3(1)	December 9, 2017	December 9, 2019	3.56%	120-500 bps	147,634			766,753
IH2 2015-1, net(1)(7)	March 9, 2018	March 9, 2020	3.60%	145-430 bps	529,497			531,318
IH2 2015-2(1)	June 9, 2018	June 9, 2020	3.18%	135-370 bps	628,988			630,283
IH2 2015-3(1)(8)	August 9, 2018	August 7, 2020	3.41%	130-475 bps	1,170,395			1,184,314
IH1 2017-1, net(9)	June 9, 2027	N/A	4.17%	N/A	996,479			—
Total Securitizations					4,177,516			5,263,994
Less deferred financing costs, net					(18,850		)	(9,256		)
Total					$	4,158,666		$	5,254,738

(1) The initial maturity term of each of these mortgage loans istwoyears, individually subject to three, one-year extension options at the borrower’s discretion (provided that there is no continuing event of default under the loan agreement and the borrower obtains a replacement interest rate cap agreement in a form reasonably acceptable to the lender). Our IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 mortgage loans have exercised the first extension options, and IH1 2014-2 has exercised the second option.The maturity dates above are reflective of all extensions that have been exercised.

(2) Represents the maturity date if we exercise each of the remaining one-year extension options available, which are subject to certain conditions being met.

(3) For each of our first seven mortgage loans, interest rates are based on a weighted average spread to LIBOR; as ofJune 30, 2017 LIBOR was1.23%. Our IH1 2017-1 mortgage loan bears interest at a fixed rate of4.17%per annum equal to the market determined pass-through rate payable on the certificates, plus applicable servicing fees.

(4) Outstanding Principal Balance is net of discounts and does not include capitalized deferred financing costs, net.

(5) From July 1, 2017 toAugust 7, 2017, we made prepayments of$0.8 millionon our mortgage loans related to the disposition of properties.

(6) On August 3, 2017, we exercised our secondone-year extension option on IH1 2014-2, extending the maturity from September 9, 2017 to September 9, 2018.

(7) Net of unamortized discount of $0.0 millionand$0.1 millionas ofJune 30, 2017andDecember 31, 2016, respectively.

(8) On July 12, 2017, we exercised our first one-year extension option on IH2 2015-3, extending the maturity from August 9, 2017 to August 9, 2018.

(9) Net of unamortized discount of$3.5 millionas ofJune 30, 2017.

Securitization Transactions

IH1 2013-1: In November 2013, we completed our first securitization transaction (“IH1 2013-1”), in which 2013-1 IH Borrower L.P. (“S1 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a sixcomponent term loan to S1 Borrower in the amount of$479.1 million. All sixcomponents of the loan were sold at par. On February 6, 2017, the outstanding balance of IH1 2013-1 was repaid in full.

IH1 2014-1: In May 2014, we completed our second securitization transaction (“IH1 2014-1”), in which 2014-1 IH Borrower L.P. (“S2 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third party lender made asixcomponent term loan to S2 Borrower in the amount of $993.7 million. All six components of the loan were sold at par. On February 6, 2017 and March 9, 2017, we made voluntary prepayments of$291.5 million and $260.0 million, respectively. On April 28, 2017, the outstanding balance of IH1 2014-1 was repaid in full.

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IH1 2014-2: In August 2014, we completed our third securitization transaction (“IH1 2014-2”), in which 2014-2 IH Borrower L.P. (“S3 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a term loan comprised of (1) sixfloating rate components and (2)one fixed rate component to S3 Borrower in the amount of$719.9 million. Of the sevenloan components, the Class A, B, C, D and G certificates were sold at par; however, the Class E and F certificates were sold at a total discount of $4.0 million. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning October 9, 2014 and continuing monthly thereafter.

IH1 2014-3: In November 2014, we completed our fourth securitization transaction (“IH1 2014-3”), in which 2014-3 IH Borrower L.P. (“S4 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender issued a term loan comprised of (1) six floating rate components and (2) one fixed rate component to S4 Borrower in the amount of $769.3 million. Of thesevencomponents, the Class B and G certificates were sold at par; however, the Class A, C, D, E and F certificates were sold at a total discount of $7.2 million. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning December 9, 2014 and continuing monthly thereafter.On May 9, 2017 and June 9, 2017, we made voluntary prepayments of$510.0 millionand$100.0 million, respectively, from the proceeds of IH1 2017-1 securitization transaction and cash flows from operations.

IH2 2015-1: In January 2015, we completed our fifth securitization transaction (“IH2 2015-1”), in which 2015-1 IH2 Borrower L.P. (“S5 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a sevencomponent term loan to S5 Borrower in the amount of $540.9 million. Six of the sevencomponents, the Class A, B, C, D, E, and G certificates were sold at par; however, the Class F certificates were sold at a total discount of $0.6 million. The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheets as ofJune 30, 2017 and December 31, 2016. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning March 9, 2015 and continuing monthly thereafter.

IH2 2015-2: In April 2015, we completed our sixth securitization transaction (“IH2 2015-2”), in which 2015-2 IH2 Borrower L.P. (“S6 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made asevencomponent term loan to S6 Borrower in the amount of$636.7 million. All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning June 9, 2015 and continuing monthly thereafter.

IH2 2015-3: In June 2015, we completed our seventh securitization transaction (“IH2 2015-3”), in which 2015-3 IH2 Borrower L.P. (“S7 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a sevencomponent term loan to S7 Borrower in the amount of$1,194.0 million. All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning August 7, 2015 and continuing monthly thereafter.

IH1 2017-1: In April 2017, we completed our eighth securitization transaction (“IH1 2017-1”), in which 2017-1 IH Borrower L.P. (“S9 Borrower”), a special purpose entity previously formed in connection with IH1 2014-1 and wholly owned subsidiary of IH1, entered into a loan agreement with Wells Fargo Bank, National Association (the “FNMA Loan”), providing for aten-year, fixed rate mortgage loan comprised of twocomponents with a total principal amount of $1,000.0 million, secured by first priority mortgages on a portfolio of7,204of our homes. The Class A certificates, which benefit from Fannie Mae’s guaranty of timely payment of principal and interest, were sold at par. The Class B certificates represent a beneficial interest in the most subordinate component of the FNMA Loan and were sold at a total discount of$3.6 million. The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheets as of June 30, 2017. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning June 9, 2017 and continuing monthly thereafter.

Concurrent with the execution of each loan agreement, the respective third-party lender sold each loan it originated with us to individual depositor entities (the “Depositor Entities”) who subsequently transferred each loan to Securitization-specific trust entities (the “Trusts”). The Depositor Entities associated with the IH1 2014-2, IH1 2014-3 and IH1 2017-1 securitizations are wholly owned subsidiaries of IH1, the Depositor Entities associated with the IH2 2015-1, IH2 2015-2, and

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IH2 2015-3 securitizations are wholly owned subsidiaries of IH2, and the Depositor Entities associated with the IH1 2013-1 and IH1 2014-1 securitizations were wholly owned by unaffiliated third parties.

As consideration for the transfer of each loan to the Trusts, the Trusts issued certificate classes which mirror the components of the individual loan agreements (collectively, the “Certificates”) to the Depositor Entities, except that Class R certificates do not have related loan components as they represent residual interests in the Trusts. The Certificates represent the entire beneficial interest in the Trusts. Following receipt of the Certificates, the Depositor Entities sold the Certificates to investors using the proceeds as consideration for the loans sold to the Depositor Entities by the lenders. These transactions hadno effect on our condensed consolidated financial statements other than with respect to the Class B certificates purchased by the Operating Partnership, and the Class G certificates purchased by IH1 and IH2.

For IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3, the Trusts made the Class A through Class F certificates available for sale to both domestic and foreign investors. With the introduction of foreign investment, IH1 and IH2, as sponsors of the respective loans, are required to retain a portion of the risk that represents a material net economic interest in each loan. The Class G certificates for IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 are equal to 5%of the original principal amount of the loans in accordance with the agreements. Per the terms of the Securitization agreements, the Class G certificates are restricted certificates and were made available exclusively to IH1 and IH2, as applicable. The Class G certificates are principal only and bear a stated annual interest rate of 0.0005%. The Class G certificates are classified as held to maturity investments and are recorded in other assets, net on the condensed consolidated balance sheets.

For IH1 2017-1, the Trust made the Class A certificates available for sale to both domestic and foreign investors. In accordance with risk retention requirements of Regulation RR (the “Risk Retention Rules”) under the Exchange Act, the Operating Partnership, as the loan sponsor, is required to retain a portion of the credit risk that represents not less than5%of the aggregate fair value of the loan as of the closing date. Per the terms of the agreement, the Class B certificates are restricted certificates that were made available exclusively to the Operating Partnership. The Class B certificates pay interest and bear a stated annual interest rate of4.17% plus applicable servicing fees. The Class B certificates are classified as held to maturity investments and are recorded in other assets, net on the condensed consolidated balance sheets.

General Terms

The general terms that apply to all of the mortgage loans require us to maintain compliance with certain affirmative and negative covenants. Affirmative covenants with which we must comply include our, and certain of our affiliates’, compliance with (i) licensing, permitting and legal requirements specified in the loan agreement, (ii) organizational requirements of the jurisdictions in which we, and certain of our affiliates, are organized, (iii) federal and state tax laws, and (iv) books and records requirements specified in the respective loan agreements. Negative covenants with which we must comply include our, and certain of our affiliates’, compliance with limitations surrounding (i) the amount of our indebtedness and the nature of our investments, (ii) the execution of transactions with affiliates, (iii) the Manager, and (iv) the nature of our business activities. At June 30, 2017, and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants.

Prepayments

For the mortgage loans, prepayments of amounts owed are generally not permitted by us under the terms of the respective loan agreements unless such prepayments are made pursuant to the voluntary election and mandatory provisions specified in such agreements. The specified mandatory provisions become effective to the extent that a property becomes characterized as a disqualified property, a property is sold, and/or upon the occurrence of a condemnation or casualty event associated with a property. To the extent either a voluntary election is made, or a mandatory prepayment condition exists, in addition to paying all interest and principal, we must also pay certain breakage costs as determined by the loan servicer and a spread maintenance premium if prepayment occurs before the month following the one year anniversary of the closing dates of each of the mortgage loans except for IH1 2017-1. For IH1 2017-1, prepayments on or before December 2026 will require a yield maintenance premium. For thesix months endedJune 30, 2017and2016, voluntary and mandatory prepayments totaling$2,083.0 millionand$30.7 million, respectively, were made under the terms of the loan agreements.

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New Credit Facility

On February 6, 2017, we entered into a loan agreement with a syndicate of banks, financial institutions and institutional lenders for a new credit facility (the “New Credit Facility”). The New Credit Facility provides $2,500.0 millionof borrowing capacity and consists of a $1,000.0 millionrevolving facility (the “Revolving Facility”), which will mature on February 6, 2021, with a one-year extension option, and$1,500.0 millionterm loan facility (the “Term Loan Facility”), which will matureon February 6, 2022. The Revolving Facility also includes borrowing capacity available for letters of credit and for short-term borrowings referred to as swing line borrowings, in each case subject to certain sublimits. The New Credit Facility provides us with the option to enter into additional incremental credit facilities (including an uncommitted incremental facility that provides us with the option to increase the size of the Revolving Facility and/or the Term Loan Facility by an aggregate amount of up to$1,500.0 million), subject to certain limitations. Proceeds from the Term Loan Facility were used to repay existing indebtedness and for general corporate purposes.

The following table sets forth a summary of the new credit facility indebtedness as of June 30, 2017:

			Outstanding Principle Balance
($ in thousands)	Origination Date	Maturity Date	Interest Rate(1)	June 30, 2017
Term loan facility	February 6, 2017	February 6, 2022	3.03%	$	1,500,000
Revolving facility	February 6, 2017	February 6, 2021	N/A	—
Total				1,500,000
Less deferred financing costs, net				(13,471		)
Total				$	1,486,529

(1) Interest rate for the Term Loan Facility is based on LIBOR plus an applicable margin of 1.80%; as of June 30, 2017, LIBOR was 1.23%.

Interest Rate and Fees

Borrowings under the New Credit Facility bear interest, at our option, at a rate equal to a margin over either (a) a LIBOR rate determined by reference to the Bloomberg LIBOR rate (or comparable or successor rate) for the interest period relevant to such borrowing or (b) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus0.50%, and (3) the LIBOR rate that would be payable on such day for a LIBOR rate loan with a one-month interest period plus1.00%. The margin is based on a total leverage based grid. The margin for the Revolving Facility ranges from0.75% to 1.30%, in the case of base rate loans, and 1.75% to 2.30%, in the case of LIBOR rate loans. The margin for the Term Loan Facility ranges from0.70% to 1.30%, in the case of base rate loans, and 1.70% to 2.30%, in the case of LIBOR rate loans. In addition, the New Credit Facility provides that, upon receiving an investment grade rating on its non-credit enhanced, senior unsecured long term debt of BBB- or better from Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or Baa3 or better from Moody’s Investors Service, Inc. (an “Investment Grade Rating Event”), we may elect to convert to a credit rating based pricing grid.

In addition to paying interest on outstanding principal under the New Credit Facility, we are required to pay a facility fee to the lenders under the Revolving Facility in respect of the unused commitments thereunder. The facility fee rate is based on the daily unused amount of the Revolving Facility and is either0.350% or 0.200% per annum based on the unused facility amount. Upon converting to a credit rating pricing based grid, the unused facility fee will no longer apply; and we will be required to pay a facility fee ranging from0.125% to 0.300%. We are also required to pay customary letter of credit fees.

Prepayments and Amortization

Noprepayment or amortization is required under the New Credit Facility. We are permitted to voluntarily repay amounts outstanding under the Term Loan Facility at any time without premium or penalty, subject to certain minimum amounts and

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the payment of customary “breakage” costs with respect to LIBOR loans. Once repaid,nofurther borrowings will be permitted under the Term Loan Facility.

General Terms

The New Credit Facility contains certain customary affirmative and negative covenants and events of default. Such covenants will, among other things, restrict, subject to certain exceptions, our ability and that of the Subsidiary Guarantors (as defined below) and their respective subsidiaries to (i) engage in certain mergers, consolidations or liquidations, (ii) sell, lease or transfer all or substantially all of their respective assets, (iii) engage in certain transactions with affiliates, (iv) make changes to the our fiscal year, (v) make changes in the nature of our business and our subsidiaries and (vi) incur additional indebtedness that is secured on a pari passu basis with the New Credit Facility.

The New Credit Facility also requires us, on a consolidated basis with our subsidiaries, to maintain a (i) maximum total leverage ratio, (ii) maximum secured leverage ratio, (iii) maximum unencumbered leverage ratio, (iv) minimum fixed charge coverage ratio, (v) minimum unencumbered fixed charge coverage ratio and (vi) minimum tangible net worth. If an event of default occurs, the lenders under the New Credit Facility are entitled to take various actions, including the acceleration of amounts due under the New Credit Facility and all actions permitted to be taken by a secured creditor. AtJune 30, 2017, and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants.

Guarantees and Security

The obligations under the New Credit Facility are guaranteed on a joint and several basis by each of our direct and indirect domestic wholly owned subsidiaries that own, directly or indirectly, unencumbered assets (the “Subsidiary Guarantors”), subject to certain exceptions. The guarantee provided by any Subsidiary Guarantor will be automatically released upon the occurrence of certain events, including if it no longer has a direct or indirect interest in an unencumbered asset or as a result of certain non-recourse refinancing transactions pursuant to which such Subsidiary Guarantor becomes contractually prohibited from providing its guaranty of the New Credit Facility. In addition, INVH may be required to provide a guarantee of the New Credit Facility under certain circumstances, including if INVH does not maintain its qualification as a REIT.

The New Credit Facility is collateralized by first priority or equivalent security interests in all the capital stock of, or other equity interests in any Subsidiary Guarantor, held by us and each of the Subsidiary Guarantors. The security interests granted under the New Credit Facility will be automatically released upon the occurrence of certain events, including upon an Investment Grade Rating Event or if the total net leverage ratio is less than or equal to 8.00:1.00 for four consecutive fiscal quarters.

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Credit Facilities

All of the then-existing credit facilities were paid in full on February 6, 2017 in connection with the closing of our IPO. The following table sets forth a summary of the outstanding principal amounts of these credit facilities as ofJune 30, 2017 and December 31, 2016:

			Outstanding Principal Balance(1)
($ in thousands)	Origination Date	Range of Spreads	June 30, 2017		December 31, 2016
IH1 2015	April 3, 2015	325 bps	$	—	$	85,492
IH2 2015	September 29, 2015	275 bps	—		43,859
IH3 2013	December 19, 2013	300-425 bps	—		932,583
IH4 2014	May 5, 2014	300-425 bps	—		529,866
IH5 2014	December 5, 2014	275-400 bps	—		564,348
IH6 2016	April 13, 2016	250-375 bps	—		165,437
Total			—		2,321,585
Less deferred financing costs, net			—		(6,044		)
Total			$	—	$	2,315,541

(1) Outstanding Principal Balance does not include capitalized deferred financing costs, net.

Certain Hedging Arrangements

Designated Hedges

We have entered into various interest rate swap agreements, as outlined in the table below. Each of these swaps were accounted for as non-designated hedges until January 31, 2017, when the criteria for hedge accounting were met as a result of the Pre-IPO Transactions described in “—Overview”. At that time, we designated these swaps for hedge accounting purposes; and the effective portion thereof is recorded in other comprehensive income subsequent to that date.

The table below summarizes our interest rate swap instruments as of June 30, 2017 ($ in thousands):

Agreement Date	Forward Effective Date	Maturity Date	Strike Rate	Index	Notional Amount
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	$	750,000
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	750,000
January 12, 2017	February 28, 2017	August 7, 2020	1.59%	One-month LIBOR	1,100,000
January 13, 2017	February 28, 2017	June 9, 2020	1.63%	One-month LIBOR	595,000
January 20, 2017	February 28, 2017	March 9, 2020	1.60%	One-month LIBOR	325,000

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income on the condensed consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During thesix months endedJune 30, 2017, such derivatives were used to hedge the variable cash flows associated with existing variable-rate interest payments. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Changes in fair value related to the ineffective portion of our Designated Hedges resulted in an unrealized gain of less than $0.1 million for thesix months endedJune 30, 2017, which is included in interest expense in our condensed consolidated statements of operations.

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Non-Designated Hedges

Concurrent with entering into certain of the mortgage loan agreements, we entered into and maintain interest rate cap agreements with terms and notional amounts equivalent to the terms and amounts of the loans made by the third-party lenders and strike prices ranging from approximately 2.52% to 3.09%(collectively, the “Strike Prices”). To the extent that the maturity date of one or more of the loans is extended through an exercise of one or more of the extension options, replacement or extension interest rate cap agreements must be executed with terms similar to those associated with the initial interest rate cap agreements and strike prices equal to the greater of the Strike Prices and the interest rate at which the debt service coverage ratio (as defined) is not less than 1.2 to 1.0. The interest rate cap agreements, including all of our rights to payments owed by the counterparty and all other rights, have been pledged as additional collateral for the loans.

Purchase of Outstanding Debt Securities or Loans

As market conditions warrant, we and our equity investors, including our Sponsor, its affiliates, and members of our management, may from time to time seek to purchase our outstanding debt, including borrowings under our credit facilities and mortgage loans or debt securities that we may issue in the future, in privately negotiated or open market transactions, by tender offer or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any purchases made by us may be funded by the use of cash on our balance sheet or the incurrence of new secured or unsecured debt, including borrowings under our credit facilities and mortgage loans. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. Any such purchases may be with respect to a substantial amount of a particular class or series of debt, with the attendant reduction in the trading liquidity of such class or series. In addition, any such purchases made at prices below the “adjusted issue price” (as defined for U.S. federal income tax purposes) may result in taxable cancelation of indebtedness income to us, which amounts may be material, and in related adverse tax consequences to us.

Cash Flows

Six Months EndedJune 30, 2017 Compared to Six Months EndedJune 30, 2016

The following table summarizes our cash flows for the six months endedJune 30, 2017 and 2016:

	Six Months Ended June 30,
($ in thousands)	2017			2016			$ Change			% Change
Net cash provided by operating activities	$	167,226		$	156,125		$	11,101		7.1	%
Net cash provided by (used in) investing activities	74,499			(206,449		)	280,948			136.1	%
Net cash (used in) provided by financing activities	(280,910		)	75,060			(355,970		)	N/M
Change in cash and cash equivalents	$	(39,185	)	$	24,736		$	(63,921	)	(258.4	)%

Operating Activities

Net cash provided by operating activities was $167.2 million and $156.1 million for the six months endedJune 30, 2017 and 2016, respectively, an increase of 7.1%. The increase was primarily driven by an increase in net operating income from $278.8 million for the six months endedJune 30, 2016 to $300.0 million for the six months endedJune 30, 2017 due to revenue growth higher than operating expense growth. Our net loss increased from $(29.6) million for the six months endedJune 30, 2016 to $(36.9) million for the six months endedJune 30, 2017, which was offset by a $44.1 millionincrease in share-based compensation expense. Our cash flows provided by operating activities depend on numerous factors, including the occupancy level of our homes, the rental rates achieved on our leases, the collection of rent from our residents, and the amount of our operating and other expenses.

Investing Activities

Net cash provided by (used in) investing activities primarily consists of the acquisition costs of homes, capital improvements, changes in restricted cash, and proceeds from property sales. Net cash provided by (used in) investing

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activities was $74.5 million and $(206.4) million for the six months endedJune 30, 2017 and 2016, respectively, leading to an increase in cash provided by investing activities of $280.9 million between the periods. The increase was partially due to the release of restricted cash in connection with the repayment of our credit facilities and the IH1 2013-1 and IH1 2014-1 mortgage loans during six months endedJune 30, 2017 resulting in an increase of $98.8 million. Additionally, there was a decrease in the number homes acquired, from 926 homes during the six months endedJune 30, 2016 to 350 homes during the six months endedJune 30, 2017, which resulted in $142.9 million less in acquisition, renovation and capital expenditure spend. The increase in number of homes sold during 2017 of 923 compared to 711 homes during the six months endedJune 30, 2016 resulted in an increase in the amount of proceeds from sale of residential properties of $45.3 million.

Financing Activities

Net cash (used in) provided by financing activities was $(280.9) million and $75.1 million for the six months endedJune 30, 2017 and 2016, respectively, or a decrease of $356.0 million. For the six months endedJune 30, 2017 we received $1,692.1 million in proceeds, net of underwriting discounts, from our IPO, while during the six months endedJune 30, 2016 equity investors contributed $138.0 million of capital. Proceeds from our IPO, Term Loan Facility and the IH1 2017-1 mortgage loan of $4,188.5 million, along with proceeds from home sales and operating cash flows, were used to repay $2,321.6 million of then-outstanding credit facilities and $2,083.0 million of mortgage loans, including full repayment of the IH1 2013-1 and IH1 2014-1 mortgage loans, and $610.0 million on the IH1 2014-3 mortgage loan, and to fund $42.1 million of deferred financing costs associated with the Term Loan Facility and IH1 2017-1 mortgage loan.

Off-Balance Sheet Arrangements

We have no obligations, assets, or liabilities that would be considered off-balance sheet arrangements.

Contractual Obligations

We have updated our contractual obligations previously provided in our Annual Report on Form 10-K for the year ended December 31, 2016 for material changes to our financing arrangements that occurred during the six months endedJune 30, 2017:

($ in thousands)	Total		2017(1)		2018-2019		2020-2021		Thereafter
Mortgage loans(2)	$	4,653,669	$	221,831	$	3,126,420	$	83,066	$	1,222,352
Term loan facility(2)	1,709,195		22,912		90,900		90,900		1,504,483
Interest rate swap(3)	232,137		30,972		123,888		74,814		2,463
Total	$	6,595,001	$	275,715	$	3,341,208	$	248,780	$	2,729,298

(1) Includes estimated payments for the remaining six months of 2017.

(2) Includes estimated interest payments on the respective debt based on amounts outstanding as of June 30, 2017 at rates in effect as of such date.

(3) Gross obligation calculated using strike prices established by each instrument.

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Critical Accounting Policies and Estimates

Critical accounting policies are those accounting policies that management believes are important to the portrayal of our financial condition and results and require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The critical policies and estimates are summarized in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2016 with respect to cost capitalization, provisions for impairment, and revenue recognition and resident receivables. Material changes during the six months endedJune 30, 2017 to our critical accounting policies are presented below:

Investments in Single-Family Residential Properties

Upon acquisition, we evaluate our acquired single-family residential properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Upon adoption of ASU 2017-01, our purchases of homes are treated as acquisitions and are recorded at their purchase price which is allocated between land, building and improvements, and in-place lease intangibles (when a tenant is in place at the acquisition date) based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, bidding service and title fees, payments made to cure tax, utility, homeowners’ association (“HOA”), and other mechanic’s and miscellaneous liens, as well as other closing costs. The fair values of acquired in-place lease intangibles, if any, are based on the costs to execute similar leases, including commissions and other related costs. The origination value of in-place lease intangibles also includes an estimate of lost rent revenue at in-place rental rates during the estimated time required to lease the property. The in-place lease intangibles are amortized over the life of the leases and are recorded in other assets, net on our condensed consolidated balance sheets.

Prior to our adoption of ASU 2017-01 effective January 1, 2017, acquisition costs for transactions accounted for as business combinations were expensed in the period in which they were incurred and were reflected in other expenses in the accompanying condensed consolidated statements of operations.

Derivatives

We enter into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes. We do not enter into Hedging Derivatives for trading or other speculative purposes, and all of our Hedging Derivatives are carried at fair value on our condensed consolidated balance sheets. Designated hedges are derivatives that meet the criteria for hedge accounting and that we have elected to designate as hedges. Non-designated hedges are derivatives that do not meet the criteria for hedge accounting or that we have not elected to designate as hedges.

Pursuant to the terms of certain of our mortgage loans, we are required to maintain interest rate caps. We have elected not to designate these interest cap agreements for hedge accounting (collectively, the “Non-Designated Hedges”). We enter into interest rate swap agreements to hedge the risk arising from changes in our interest payments on variable-rate debt due to changes in the one-month London Interbank Offered Rate (“LIBOR”). In connection with the Pre-IPO Transactions, as of January 31, 2017, we have elected to account for our interest rate swap agreements as effective cash flow hedges (collectively, the “Designated Hedges”). We assess the effectiveness of these interest rate swap cash flow hedging relationships on an ongoing basis. The effect of these interest rate cap agreements and interest rate swap agreements is to reduce the variability of interest payments due to changes in LIBOR.

The fair value of Hedging Derivatives that are in an asset position are included in other assets, net and those in a liability position are included in other liabilities on our condensed consolidated balance sheets. For Non-Designated Hedges, the related changes in fair value are reflected within interest expense in the condensed consolidated statements of operations. For Designated Hedges, the effective portion of the related changes in fair value is reported as a component of other comprehensive income (loss) on our condensed consolidated balance sheets and reclassified into earnings as interest expense in our condensed consolidated statements of operations when the hedged transactions affect earnings; the ineffective portion of the changes in fair value is reflected directly within interest expense in the condensed consolidated statements of operations.See “—Liquidity and Capital Resources” for further discussion of derivative financial instruments.

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Share-Based Compensation Expense

Prior to the IPO, we recognized share-based compensation expense for incentive compensation units granted by the Invitation Homes Partnerships (the “Class B Units”). In connection with and subsequent to the IPO, we issued restricted stock units (“RSUs”) that settle in shares of common stock and restricted shares of common stock (“RSAs”) for which share-based compensation expense is recognized.

We recognized share-based compensation expense for the Class B Units based on the estimated fair value of the Class B Units and vesting conditions of the related incentive unit agreements. Since the Class B Units granted by IH1 were granted to employees of the Manager, a wholly owned subsidiary of IH1, the related share-based compensation expense was based on the grant-date fair value of the units and recognized in expense over the service period. Because units in IH2, IH3, IH4, IH5, and IH6 were granted to non-employees of those respective partnerships, fair value was remeasured for non-vested units at the end of each reporting period. The fair value of the Class B Units was determined based on a valuation model that took into account discounted cash flows and a market approach based on comparable companies and transactions.

We recognize share-based compensation expense for the RSUs and RSAs based on their grant-date fair value, net of expected forfeitures, over the service period from the grant date to vest date for each tranche or when any applicable performance conditions are met in accordance with the related RSU and RSA agreements. The grant-date fair value of RSUs and RSAs is generally based on the closing price of our common stock on the grant date except for market based RSU grant‑date fair values which are based on Monte-Carlo option pricing models.

Additional compensation expense is recognized if modifications to existing incentive compensation unit, RSU, or RSA agreements result in an increase in the post-modification fair value of the units that exceeds their pre-modification fair value.

Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is the Chief Executive Officer.

Under the provision of ASC 280, Segment Reporting, we have determined that we have one reportable segment related to acquiring, renovating, leasing, and operating single-family homes as rental properties, including single-family homes in planned unit developments. The CODM evaluates operating performance and allocates resources on a total portfolio basis. The CODM utilizes net operating income as the primary measure to evaluate performance of the total portfolio. The aggregation of individual homes constitutes the total portfolio. Decisions regarding acquisitions and dispositions of homes are made at the individual home level.

Non-GAAP Measures

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define EBITDA as net income (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. Adjusted EBITDA is defined as EBITDA before the following items: share-based compensation expense; offering related expenses, impairment and other; acquisition costs; gain (loss) on sale of property, net of tax; and interest income and other miscellaneous income and expenses. EBITDA and Adjusted EBITDA 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 and Adjusted EBITDA as measures of performance.

Our management uses EBITDA and Adjusted EBITDA in a number of ways to assess our condensed consolidated financial and operating performance, and we believe these measures are helpful to management and external users in identifying trends in our performance. EBITDA and Adjusted EBITDA help management identify controllable expenses and make decisions designed to help us meet our current financial goals and optimize our financial performance, while

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neutralizing the impact of capital structure on results. Accordingly, we believe these metrics measure our financial performance based on operational factors that management can impact in the short-term, namely our cost structure and expenses.

We believe that the presentation of EBITDA and Adjusted EBITDA provides information useful to investors in assessing our financial condition and results of operations. The GAAP measure most directly comparable to EBITDA and Adjusted EBITDA is net income or loss. EBITDA and Adjusted EBITDA 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 and Adjusted EBITDA may not be comparable to the EBITDA and Adjusted EBITDA of other companies due to the fact that not all companies use the same definitions of EBITDA and Adjusted EBITDA. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies.

The following table presents a reconciliation of GAAP net income (loss) to EBITDA and Adjusted EBITDA on a historical basis for each of the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2017			2016			2017			2016
Net income (loss) available to common shareholders	$	5,420		$	(19,666	)	$	(36,971	)	$	(29,641	)
Net income (loss) available to participating securities	109			—			109			—
Interest expense	57,358			70,523			125,930			140,800
Depreciation and amortization	67,515			66,079			135,092			131,781
EBITDA	130,402			116,936			224,160			242,940
Share-based compensation expense(1)	8,216			4,106			52,460			8,312
Offering related expenses	656			—			8,287			—
Impairment and other	706			546			1,910			363
Acquisition costs	—			7			—			42
Gain on sale of property, net of tax	(10,162		)	(1,020		)	(24,483		)	(10,212		)
Other, net(2)	869			(192		)	1,095			(74		)
Adjusted EBITDA	$	130,687		$	120,383		$	263,429		$	241,371

(1) For the three months endedJune 30, 2017 and 2016, $6,880 and $4,008 was recorded in general and administrative expense, respectively, and $1,336 and $98 was recorded in property management expense, respectively. For the six months endedJune 30, 2017 and 2016, $47,151 and $8,059 was recorded in general and administrative expense, respectively, and $5,309 and $253 was recorded in property management expense, respectively.

(2) Includes interest income and other miscellaneous income and expenses.

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.

We consider NOI to be a meaningful supplemental financial measure of our performance when considered with the financial statements determined in accordance with GAAP. We believe NOI is helpful to investors in understanding the core performance of our real estate operations. 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

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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.

The following table presents a reconciliation of GAAP net income (loss) to NOI for our total portfolio and NOI for our Same Store portfolio on a historical basis for each of the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2017			2016			2017			2016
Net income (loss) available to common shareholders	$	5,420		$	(19,666	)	$	(36,971	)	$	(29,641	)
Net income (loss) available to participating securities	109			—			109			—
Interest expense	57,358			70,523			125,930			140,800
Depreciation and amortization	67,515			66,079			135,092			131,781
General and administrative(1)	18,426			15,408			76,692			30,768
Property management expense(2)	9,135			7,530			20,584			14,923
Impairment and other	706			546			1,910			363
Acquisition costs	—			7			—			42
Gain on sale of property, net of tax	(10,162		)	(1,020		)	(24,483		)	(10,212		)
Other, net(3)	869			(192		)	1,095			(74		)
NOI (total portfolio)	149,376			139,215			299,958			278,750
Non-Same Store NOI	(13,723		)	(11,641		)	(27,572		)	(21,949		)
NOI (Same Store portfolio)(4)	$	135,653		$	127,574		$	272,386		$	256,801

(1) Includes $6,880 and $4,008 of share-based compensation expense for the three months endedJune 30, 2017 and 2016, respectively. Includes $47,151 and $8,059 of share-based compensation expense for the six months endedJune 30, 2017 and 2016, respectively.

(2) Includes $1,336 and $98 of share-based compensation expense for the three months endedJune 30, 2017 and 2016, respectively. Includes $5,309 and $253 of share-based compensation expense for the six months endedJune 30, 2017 and 2016, respectively.

(3) Includes interest income and other miscellaneous income and expenses.

(4) Same Store (consisting of homes which had commenced their initial post-renovation lease prior to October 3rd of the year prior to the first year of the comparison period) homes are 42,904.

Funds from Operations (“FFO”), Core Funds from Operations, and Adjusted Funds from Operations

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 the National Association of Real Estate Investment Trusts as net income or loss (computed in accordance with GAAP) excluding net 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, as well as gains or losses related to sales of previously depreciated homes, from GAAP net income or loss. By excluding

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depreciation and amortization and gains or losses on sales of real estate, management uses FFO to measure returns on its investments in homes. However, FFO excludes depreciation and amortization and captures neither the changes in the value of the homes that result from use or market conditions nor the level of capital expenditures to maintain the operating performance of the homes, all of which have real economic effect and could materially affect our results from operations, the utility of FFO as a measure of our performance is limited.

Management also believes that FFO, combined with the required GAAP presentations, is useful to investors in providing more meaningful comparisons of the operating performance of a company’s real estate between periods or as compared to other companies. The GAAP measure most directly comparable to FFO is net income or loss. FFO is not used as a measure of our liquidity and should not be considered an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our FFO may not be comparable to the FFO of other companies due to the fact that not all companies use the same definition of FFO. Accordingly, there can be no assurance that our basis for computing this non-GAAP measures is comparable with that of other companies.

We believe that Core FFO and Adjusted FFO are also meaningful supplemental measures of our operating performance for the same reasons as FFO and are further helpful to investors as they provides a more consistent measurement of our performance across reporting periods by removing the impact of certain items that are not comparable from period to period. We define Core FFO as FFO adjusted for noncash interest expense related to amortization of deferred financing costs and discounts related to our financing arrangements, noncash interest expense for derivatives, share-based compensation expense, offering related expenses, severance expenses, casualty losses, net, and acquisition costs, as applicable. We define Adjusted FFO as Core FFO less recurring capital expenditures that are necessary to help preserve the value of and maintain functionality of our homes. 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.

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The following table presents a reconciliation of GAAP net income (loss) to FFO, Core FFO, and Adjusted FFO on a historical basis for each of the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except share and per share data)	2017			2016			2017			2016
Net income (loss) available to common shareholders	$	5,420		$	(19,666	)	$	(36,971	)	$	(29,641	)
Add (deduct) adjustments from net income (loss) available to common shareholders to derive FFO:
Net income (loss) available to participating securities	109			—			109			—
Depreciation and amortization on real estate assets	66,699			64,775			133,352			129,184
Impairment on depreciated real estate investments	95			519			1,132			519
Net gain on sale of previously depreciated investments in real estate	(10,162		)	(1,020		)	(24,483		)	(10,212		)
FFO	62,161			44,608			73,139			89,850
Noncash interest expense related to amortization of deferred financing costs, mortgage loan discounts and noncash interest expense from derivatives	5,137			15,622			20,271			29,816
Share-based compensation expense(1)	8,216			4,106			52,460			8,312
Offering related expenses	656			—			8,287			—
Severance expense	392			1,102			437			1,908
Casualty losses, net	611			27			778			(156		)
Acquisition costs	—			7			—			42
Core FFO	77,173			65,472			155,372			129,772
Recurring capital expenditures	(11,605		)	(11,495		)	(20,834		)	(22,907		)
Adjusted FFO	$	65,568		$	53,977		$	134,538		$	106,865
	Three Months Ended June 30, 2017						February 1, 2017 through June 30, 2017
Weighted average common shares outstanding — diluted(2)	312,271,578						311,723,463
FFO per common share – diluted	$	0.20					$	0.23
Core FFO per common share – diluted	$	0.25					$	0.50
AFFO per common share – diluted	$	0.21					$	0.43

(1) For the three months endedJune 30, 2017 and 2016, $6,880 and $4,008 was recorded in general and administrative expense, respectively, and $1,336 and $98 was recorded in property management expense, respectively. For the six months endedJune 30, 2017 and 2016, $47,151 and $8,059 was recorded in general and administrative expense, respectively, and $5,309 and $253 was recorded in property management expense, respectively.

(2) Weighted average common shares outstanding – diluted was calculated using the two-class method and represents common share equivalents that are dilutive for FFO, Core FFO, and AFFO.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our future income, cash flows, and fair values relevant to financial instruments are dependent upon prevalent market interest rates. Market risk refers to the risk of loss from adverse changes in interest rates, seasonality, market prices, commodity prices, and inflation. The primary market risks to which we are exposed are interest rate risk and seasonality. We may in the future use derivative financial instruments to manage, or hedge, interest rate risks related to any borrowings we may have. We may enter into such contracts only with major financial institutions based on their credit ratings and other factors. Our exposure to market risk has not materially changed from what we previously disclosed in Part II. Item 7A. “Quantitative and Qualitative Disclosures about Market Risk" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 except as noted below.

Interest Rate Risk

A primary market risk to which we believe we are exposed is interest rate risk, which may result from many factors, including government monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control. We may incur additional variable rate debt in the future, including additional amounts that we may borrow under our credit facilities. In addition, decreases in interest rates may lead to additional competition for the acquisition of single-family homes, which may lead to future acquisitions being more costly and resulting in lower yields on single-family homes targeted for acquisition. Significant increases in interest rates may also have an adverse impact on our earnings if we are unable to increase rents on expired leases or acquire single-family homes with rental rates high enough to offset the increase in interest rates on our borrowings.

At December 31, 2016, the total outstanding balance of our variable-rate debt was comprised of borrowings on our mortgage loans of $5,264.0 million and our credit facilities of $2,321.6 million. As of June 30, 2017, our outstanding variable-rate debt was comprised of borrowings on our mortgage loans of $3,181.0 million and Term Loan Facility of $1,500.0 million of which 75.2% was effectively converted to fixed rate through interest rate swap agreements. Additionally, all borrowings bear interest at LIBOR plus the applicable spread. Assuming no change in the outstanding balance of our existing debt, the following table illustrates the projected effect of a 100 basis point increase or decrease in the LIBOR rate on our annual interest expense as of June 30, 2017 and December 31, 2016:

($ in thousands)	Change in Interest Expense(1)
Impact to future earnings due to variable rate debt:	As of June 30, 2017			As of December 31, 2016
Rate increase of 1%(2)	$	11,610		$	75,856
Rate decrease of 1%(3)	(11,610		)	(52,323		)

(1) The interest rate swap agreements were factored into the June 30, 2017 disclosure, but were not factored into the December 31, 2016 disclosure as the forward looking swaps did not begin until February 28, 2017.

(2) Calculation of additional projected annual interest expense as a result of a 100 basis point increase considers the potential impact of our interest rate cap agreements as of June 30, 2017.

(3) Calculation of projected decrease in annual interest expense as a result of a 100 basis point decrease is reflective of any LIBOR floors or minimum interest rates stated in the agreements of the respective borrowings.

This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we may consider taking actions to further mitigate our exposure to the change. However, because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure.

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Seasonality

Our business and related operating results have been, and we believe that they will continue to be, impacted by seasonal factors throughout the year. In particular, we have experienced higher levels of resident move-outs during the summer months, which impacts both our rental revenues and related turnover costs. Further, our property operating costs are seasonally impacted in certain markets by increases in expenses such as HVAC repairs, costs to re-resident, and landscaping expenses during the summer season.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain a set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) designed to ensure that information required to be disclosed in reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. The design of any disclosure controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2017. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2017, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act during the quarter ended June 30, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

66

PART II

ITEM 1. LEGAL PROCEEDINGS

The Company currently is not subject to any material litigation nor, to management's knowledge, is any material litigation currently threatened against the Company other than routine litigation and administrative proceedings arising in the ordinary course of business.

ITEM 1A. RISK FACTORS

As of June 30, 2017, there have been no material changes from the risk factors previously disclosed in response to Part I. Item 1A. “Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit Number	Description
3.1	Charter of Invitation Homes Inc., dated as of February 6, 2017 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K (File No. 1-38004) filed on February 6, 2017).
3.2	Amended and Restated Bylaws of Invitation Homes Inc., dated as of February 6, 2017 (incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 8-K (File No. 1-38004) filed on February 6, 2017).
10.1	Form of Award Notice and Restricted Stock Unit Agreement (Annual Equity Award) (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K (File No. 1-38004) filed on June 29, 2017). †

67

Exhibit Number	Description
10.2	Form of Award Notice and Restricted Stock Unit Agreement (Retention Award - Messrs. Freedman and Tanner) (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K (File No. 1-38004) filed on June 29, 2017). †
10.3	Invitation Homes Inc. Executive Severance Plan (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K (File No. 1-38004) filed on June 29, 2017). †
31.1	Certificate of John B. Bartling Jr., President and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-­Oxley Act of 2002.
31.2	Certificate of Ernest M. Freedman, Executive Vice President and Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certificate of John B. Bartling Jr., President and Chief Executive Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
32.2	Certificate of Ernest M. Freedman, Executive Vice President and Chief Financial Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

† This document has been identified as a management contract or compensatory plan or arrangement.

Certain agreements and other documents filed as exhibits to this Quarterly Report on Form 10-Q contain representations and warranties that the parties thereto made to each other. These representations and warranties have been made solely for the benefit of the other parties to such agreements and may have been qualified by certain information that has been disclosed to the other parties to such agreements and other documents and that may not be reflected in such agreements and other documents. In addition, these representations and warranties may be intended as a way of allocating risks among parties if the statements contained therein prove to be incorrect, rather than as actual statements of fact. Accordingly, there can be no reliance on any such representations and warranties as characterizations of the actual state of facts. Moreover, information concerning the subject matter of any such representations and warranties may have changed since the date of such agreements and other documents.

68

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Invitation Homes Inc.
By:	/s/ Ernest M. Freedman
	Name: Ernest M. Freedman
	Title: Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)
By:	/s/ Kimberly K. Norrell
	Name: Kimberly K. Norrell
	Title: Senior Vice President and Chief Accounting Officer
	(Principal Accounting Officer)

Date: August 10, 2017

69

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, John B. Bartling Jr. , certify that:

1. I have reviewed this this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 of Invitation Homes Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. [Intentionally omitted];

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ John B. Bartling Jr.
	John B. Bartling Jr.
	President and Chief Executive Officer
	(Principal Executive Officer)
	August 10, 2017

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Ernest M. Freedman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 of Invitation Homes Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. [Intentionally omitted];

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Ernest M. Freedman
	Ernest M. Freedman
	Chief Financial Officer
	(Principal Financial Officer)
	August 10, 2017

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY

ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Invitation Homes Inc. (the “Company”) for the fiscal quarter ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John B. Bartling Jr., President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ John B. Bartling Jr.
	John B. Bartling Jr.
	President and Chief Executive Officer
	(Principal Executive Officer)

August 10, 2017

A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY

ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Invitation Homes Inc. (the “Company”) for the fiscal quarter ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ernest M. Freedman, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Ernest M. Freedman
	Ernest M. Freedman
	Chief Financial Officer
	(Principal Financial Officer)

August 10, 2017

A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 09, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Invitation Homes Inc.
Entity Central Index Key	0001687229
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		311,354,290

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments in single-family residential properties:
Land	$ 2,716,934	$ 2,703,388
Building and improvements	7,116,587	7,091,457
Investments in single-family residential properties, gross	9,833,521	9,794,845
Less: accumulated depreciation	(917,961)	(792,330)
Investments in single-family residential properties, net	8,915,560	9,002,515
Cash and cash equivalents	158,934	198,119
Restricted cash	138,264	222,092
Other assets, net	306,568	309,625
Total assets	9,519,326	9,732,351
Liabilities:
Mortgage loans, net	4,158,666	5,254,738
Term loan facility, net	1,486,529	0
Credit facilities, net	0	2,315,541
Accounts payable and accrued expenses	110,919	88,052
Resident security deposits	88,781	86,513
Other liabilities	30,460	30,084
Total liabilities	5,875,355	7,774,928
Equity:
Preferred stock, $0.01 par value per share, 900,000,000 shares authorized, none outstanding at June 30, 2017	0
Common stock, $0.01 par value per share, 9,000,000,000 shares authorized, 310,376,634 outstanding at June 30, 2017	3,104
Additional paid-in capital	3,675,094
Accumulated deficit	(38,799)
Accumulated other comprehensive income	4,572
Total equity	3,643,971	1,957,423
Total liabilities and equity	$ 9,519,326	$ 9,732,351

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)	Jun. 30, 2017 $ / shares shares
Statement of Financial Position [Abstract]
Preferred shares, par value (in dollars per share) | $ / shares	$ 0.01
Preferred shares, shares authorized (in shares)	900,000,000
Preferred shares, shares outstanding (in shares)	0
Common stock shares, par value (in dollars per share) | $ / shares	$ 0.01
Common stock, shares authorized (in shares)	9,000,000,000
Common stock, shares outstanding (in shares)	310,376,634

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Rental revenues	$ 228,504	$ 219,354	$ 454,600	$ 433,677
Other property income	13,712	11,142	26,366	21,321
Total revenues	242,216	230,496	480,966	454,998
Operating expenses:
Property operating and maintenance	92,840	91,281	181,008	176,248
Property management expense	9,135	7,530	20,584	14,923
General and administrative	18,426	15,408	76,692	30,768
Depreciation and amortization	67,515	66,079	135,092	131,781
Impairment and other	706	546	1,910	363
Total operating expenses	188,622	180,844	415,286	354,083
Operating income	53,594	49,652	65,680	100,915
Other income (expenses):
Interest expense	(57,358)	(70,523)	(125,930)	(140,800)
Other, net	(869)	185	(1,095)	32
Total other income (expenses)	(58,227)	(70,338)	(127,025)	(140,768)
Loss from continuing operations	(4,633)	(20,686)	(61,345)	(39,853)
Gain on sale of property, net of tax	10,162	1,020	24,483	10,212
Net income (loss)	5,529	$ (19,666)	$ (36,862)	$ (29,641)
Net income (loss) available to common shareholders — basic	5,420
Net income (loss) available to common shareholders — diluted	$ 5,420
Weighted average common shares outstanding — basic (in shares)	311,771,221
Weighted average common shares outstanding — diluted (in shares)	312,271,578
Net income (loss) per common share — basic (in dollars per share)	$ 0.02
Net income (loss) per common share — diluted (in dollars per share)	0.02
Dividends declared per common share (in dollars per share)	$ 0.06

XML

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 5,529	$ (19,666)	$ (36,862)	$ (29,641)
Other comprehensive income (loss):
Unrealized losses on interest rate swaps	(14,759)	0	(4,198)	0
Losses from interest rate swaps reclassified into earnings from accumulated other comprehensive income	6,059	0	8,770	0
Other comprehensive (loss) income	(8,700)	0	4,572	0
Comprehensive loss	$ (3,171)	$ (19,666)	$ (32,290)	$ (29,641)

XML

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning Balance at Dec. 31, 2016	$ 1,957,423	$ 0	$ 0	$ 0	$ 0
Beginning Balance, common stock, shares outstanding (in shares) at Dec. 31, 2016		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(16,879)
Redemption of Series A Preferred Stock	(1,153)
Distribution of Class B notes receivable	(19,686)
Cancelation/distribution of Class B notes receivable	19,686
Share-based compensation expense	12,001
Accrued interest on Class B notes	15
Ending Balance, common stock, shares outstanding (in shares) at Jan. 31, 2017		0
Ending Balance at Jan. 31, 2017	1,951,407	$ 0	0	0	0
Beginning Balance at Dec. 31, 2016	1,957,423	$ 0	0	0	0
Beginning Balance, common stock, shares outstanding (in shares) at Dec. 31, 2016		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(36,862)
Total other comprehensive income	$ 4,572
Ending Balance, common stock, shares outstanding (in shares) at Jun. 30, 2017	310,376,634	310,376,634
Ending Balance at Jun. 30, 2017	$ 3,643,971	$ 3,104	3,675,094	(38,799)	4,572
Beginning Balance at Jan. 31, 2017	1,951,407	$ 0	0	0	0
Beginning Balance, common stock, shares outstanding (in shares) at Jan. 31, 2017		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Pre-IPO Transactions (see Note 1)	(1,951,407)	$ 2,218	1,949,189
Pre-IPO Transactions (see Note 1) (in shares)		221,826,634
Issuance of Common Stock — IPO (in shares)		88,550,000
Issuance of common stock — IPO	1,692,058	$ 886	1,691,172
Offering costs	(5,726)		(5,726)
Net loss	(19,983)			(19,983)
Dividends declared	(18,816)		0	(18,816)
Share-based compensation expense	40,459		40,459	0	0
Total other comprehensive income	$ 4,572				4,572
Ending Balance, common stock, shares outstanding (in shares) at Jun. 30, 2017	310,376,634	310,376,634
Ending Balance at Jun. 30, 2017	$ 3,643,971	$ 3,104	$ 3,675,094	$ (38,799)	$ 4,572

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Statement of Cash Flows [Abstract]
Net loss	$ (36,862,000)	$ (29,641,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	135,092,000	131,781,000
Share-based compensation expense	52,460,000	8,312,000
Amortization of deferred leasing costs	6,226,000	7,212,000
Amortization of deferred financing costs	16,355,000	26,981,000
Amortization of discount on mortgage loans	114,000	2,835,000
Provisions for impairment	1,132,000	519,000
Gain on sale of property, net of tax	(24,483,000)	(10,212,000)
Paid in kind interest on warehouse loan	0	995,000
Change in fair value of derivative instruments	3,802,000	0
Other noncash amounts included in net loss	(922,000)	(789,000)
Change in operating assets and liabilities:
Restricted cash related to security deposits	(2,632,000)	(4,095,000)
Other assets, net	(8,564,000)	(13,837,000)
Accounts payable and accrued expenses	24,054,000	30,976,000
Resident security deposits	2,268,000	4,112,000
Other liabilities	(814,000)	976,000
Net cash provided by operating activities	167,226,000	156,125,000
Investing Activities:
Changes in amounts deposited and held by others	89,000	2,207,000
Acquisition of single-family residential properties	(84,632,000)	(205,932,000)
Initial renovations to single-family residential properties	(13,026,000)	(34,464,000)
Other capital expenditures for single-family residential properties	(21,133,000)	(21,308,000)
Corporate capital expenditures	(1,494,000)	(2,510,000)
Proceeds from sale of residential properties	129,239,000	83,940,000
Purchases of investments in debt securities	(51,920,000)	(16,036,000)
Repayment proceeds from retained debt securities	30,916,000	0
Changes in restricted cash	86,460,000	(12,346,000)
Net cash provided by (used in) investing activities	74,499,000	(206,449,000)
Financing Activities:
Contributions	0	138,002,000
Dividends paid	(18,816,000)	0
Redemption of Series A preferred stock	(1,153,000)	0
Proceeds from initial offering, net of underwriting discounts	1,692,058,000	0
Offering costs paid	(2,757,000)	0
Proceeds from credit facilities	0	184,021,000
Payments on credit facilities	(2,321,585,000)	(111,661,000)
Proceeds from mortgage loans	996,420,000	0
Payments on mortgage loans	(2,083,012,000)	(30,738,000)
Proceeds from term loan facility	(1,500,000,000)	0
Payments on warehouse loans	0	(95,895,000)
Deferred financing costs paid	(42,065,000)	(8,669,000)
Net cash (used in) provided by financing activities	(280,910,000)	75,060,000
Change in cash and cash equivalents	(39,185,000)	24,736,000
Cash and cash equivalents, beginning of period	198,119,000	274,818,000
Cash and cash equivalents, end of period	158,934,000	299,554,000
Supplemental cash flow disclosures:
Interest paid, net of amounts capitalized	110,561,000	110,268,000
Cash paid for income taxes	1,987,000	0
Noncash investing and financing activities:
Accrued renovation improvements at period end	3,868,000	8,037,000
Accrued residential property capital improvements at period end	3,754,000	3,505,000
Transfer of residential property, net to other asset, net for held for sale assets	41,278,000	3,669,000
Reclassification of offering costs from other assets to additional paid-in capital	2,969,000	0
Change in other comprehensive income from cash flow hedges	$ 4,572,000	$ 0

XML

Organization and Formation

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Formation

Note 1—Organization and Formation

Invitation Homes Inc. (“INVH”) was formed for the purpose of owning, renovating, leasing, and operating single-family residential properties. On February 6, 2017, INVH completed an initial public offering (“IPO”) of 88,550,000 shares of common stock at a price to the public of $20.00 per share. An additional 221,826,634 shares of common stock were issued to the Pre-IPO Owners (as defined below).

Prior to the IPO, we conducted our business through a combination of entities formed by Blackstone Real Estate Partners VII L.P. (“BREP VII”), an investment fund sponsored by The Blackstone Group L.P., along with BREP VII’s affiliated side-by-side funds and co-investment vehicles (“BREP VII and Affiliates”). The first Invitation Homes partnership was formed on June 12, 2012, through the establishment of Invitation Homes L.P. (“IH1”) and its wholly-owned subsidiary, THR Property Management L.P. (the “Manager”). Preeminent Holdings, Inc. (“IH2”) was created on February 14, 2013, Invitation Homes 3 L.P. (“IH3”) on August 8, 2013, Invitation Homes 4 L.P. (“IH4”) on January 10, 2014, Invitation Homes 5 L.P. (“IH5”) on August 22, 2014, and Invitation Homes 6 L.P. (“IH6”) on June 15, 2015 (collectively with IH1, the “Invitation Homes Partnerships”). Through the Manager, we provide all management and other administrative services with respect to the properties we own. The collective owners of the Invitation Homes Partnerships are referred to as the “Pre-IPO Owners.”

Invitation Homes Operating Partnership LP (the “Operating Partnership”) and its general partner, Invitation Homes OP GP LLC (the “OP General Partner”), were formed by one of our Pre-IPO Owners on December 14, 2016. The Operating Partnership began negotiating and entering into certain debt and hedge instruments upon its inception in anticipation of our IPO.

Prior to the IPO, the Invitation Homes Partnerships and the Operating Partnership were under the common control of BREP VII and Affiliates. BREP VII and Affiliates had the ability to control each of the Invitation Homes Partnerships and manage and operate the Invitation Homes Partnerships through the Manager and a common board of directors. As such prior to the IPO, our historical financial statements include assets, liabilities and results of operations of the Operating Partnership and the Invitation Homes Partnerships and their consolidated subsidiaries on a combined and consolidated basis.

As a result of the Pre-IPO Transactions described below, IH2 was effectively merged into INVH (and the assets and liabilities of IH2 were contributed to the Operating Partnership), and the remaining Invitation Homes Partnerships became wholly owned subsidiaries of INVH through the Operating Partnership.

On October 4, 2016, INVH was incorporated in the State of Delaware and was capitalized as of that date by an investment from one of our Pre-IPO Owners. Since inception, and through the date of the Pre-IPO Transactions (as described below), INVH did not engage in any business or activity. On February 6, 2017, INVH changed its jurisdiction of incorporation to Maryland. The Pre-IPO Transactions also included amendments to the INVH charter which provide for the issuance of up to 9,000,000,000 shares of common stock and 900,000,000 shares of preferred stock, $0.01 par value per share.

Our organizational structure includes several wholly owned subsidiaries that were formed to facilitate our financing arrangements (the “Borrower Entities”). These Borrower Entities are used to align the ownership of our single-family residential properties with individual debt instruments. Collateral for the individual debt instruments is in the form of equity interests in the Borrower Entities or in pools of single-family residential properties owned either directly by the Borrower Entities or indirectly by their wholly owned subsidiaries (see Note 6).

References to “Invitation Homes,” the “Company,” “we,” “our,” and “us” refer, collectively, to INVH, IH1, IH2, IH3, IH4, IH5, IH6, the Manager, and the Operating Partnership.

Pre-IPO Transactions

On January 31, 2017, we effected certain transactions (the “Pre-IPO Transactions”) that resulted in the Operating Partnership holding, directly or indirectly, all of the assets, liabilities, and results of operations of the Invitation Homes Partnerships, including the full portfolio of homes held by the Invitation Homes Partnerships. As a result of the Pre-IPO Transactions, the Operating Partnership is wholly owned by INVH directly and through its wholly owned subsidiary, the OP General Partner. More specifically:

• INVH acquired all of the assets, liabilities, and operations held directly or indirectly by IH2 through certain mergers and related transactions as follows:

• IH2 Property Holdings Inc., a parent entity of IH2, merged with and into INVH, with INVH as the entity surviving the merger (the “IH2 Property Holdings Merger”), and the issued and outstanding shares of IH2 Property Holdings Inc., all of which were held by certain of the Pre-IPO Owners, were converted into newly issued shares of common stock of INVH; and

• following the IH2 Property Holdings Merger, IH2 merged with and into INVH, with INVH as the entity surviving the merger (the “IH2 Merger”). In the IH2 Merger, all of the shares of common stock of IH2 issued and outstanding immediately prior to such merger, other than the shares held by INVH, were converted into shares of newly issued common stock of INVH. As a result of the IH2 Merger, INVH holds all of the assets and operations held directly or indirectly by IH2 prior to such merger;

• prior to the IH2 Merger, our Pre-IPO Owners contributed to INVH their interests in each of the other Invitation Homes Partnerships (other than IH2) in exchange for newly-issued shares of INVH; and

• INVH contributed to the Operating Partnership all of the interests in the Invitation Homes Partnerships (other than IH2, the assets, liabilities and operations of which were contributed to the Operating Partnership).

The Pre-IPO Transactions were accounted for as a reorganization of entities under common control utilizing historical cost basis.

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies

Note 2—Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our audited combined and consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Subsequent to the date of the Pre-IPO Transactions, these condensed consolidated financial statements include the accounts of INVH and its wholly owned subsidiaries. Prior to the date of the Pre-IPO Transactions, these combined and consolidated financial statements include the combined accounts of the Operating Partnership and the Invitation Homes Partnerships and their wholly owned subsidiaries.

All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in these condensed consolidated financial statements. Operating results for the six months endedJune 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.

We consolidate entities when we own, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. We consolidate variable interest entities (“VIEs”) in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation, if we are the primary beneficiary of the VIE as determined by our power to direct the VIE’s activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.

Adoption of New Accounting Standards

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted only for transactions that occurred before the issuance date of the guidance and has not been previously reported in issued financial statements. Effective January 1, 2017, we adopted ASU 2017-01, and the adoption of this standard had no material impact on our condensed consolidated financial statements for any period presented.

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Effective January 1, 2017, we adopted ASU 2016-09, and the adoption of this standard had no impact on our condensed consolidated financial statements for any period presented.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates.

Accounting Policies

There have been no changes to our significant accounting policies that have had a material impact on our condensed consolidated financial statements and related notes, compared to those policies disclosed in our audited combined and consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 other than as disclosed below.

Investments in Single-Family Residential Properties

Upon acquisition, we evaluate our acquired single-family residential properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Upon adoption of ASU 2017-01, our purchases of homes are treated as acquisitions and are recorded at their purchase price which is allocated between land, building and improvements, and in-place lease intangibles (when a tenant is in place at the acquisition date) based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, bidding service and title fees, payments made to cure tax, utility, homeowners’ association (“HOA”), and other mechanic’s and miscellaneous liens, as well as other closing costs. The fair values of acquired in-place lease intangibles, if any, are based on the costs to execute similar leases, including commissions and other related costs. The origination value of in-place lease intangibles also includes an estimate of lost rent revenue at in-place rental rates during the estimated time required to lease the property. The in-place lease intangibles are amortized over the life of the leases and are recorded in other assets, net on our condensed consolidated balance sheets.

Prior to our adoption of ASU 2017-01 effective January 1, 2017, acquisition costs for transactions accounted for as business combinations were expensed in the period in which they were incurred and were reflected in other expenses in the accompanying condensed consolidated statements of operations.

Earnings per Share

We use the two-class method to compute basic and diluted earnings (loss) per common share (“EPS”) because certain of our restricted stock units and restricted stock awards (see Share-Based Compensation Expense below) are participating securities as defined by GAAP. We compute basic EPS by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding for the period, adjusted to exclude non-vested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of non-vested RSUs and RSAs except when doing so would be anti-dilutive. Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure upon which to compute historical EPS. Accordingly, EPS has not been presented for historical periods prior to the IPO.

Derivatives

We enter into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes. We do not enter into Hedging Derivatives for trading or other speculative purposes, and all of our Hedging Derivatives are carried at fair value on our condensed consolidated balance sheets. Designated hedges are derivatives that meet the criteria for hedge accounting and that we have elected to designate as hedges. Non-designated hedges are derivatives that do not meet the criteria for hedge accounting or that we have not elected to designate as hedges.

Pursuant to the terms of certain of our mortgage loans, we are required to maintain interest rate caps. We have elected not to designate these interest cap agreements for hedge accounting (collectively, the “Non-Designated Hedges”). We enter into interest rate swap agreements to hedge the risk arising from changes in our interest payments on variable-rate debt due to changes in the one-month London Interbank Offered Rate (“LIBOR”). In connection with the Pre-IPO Transactions, as of January 31, 2017, we have elected to account for our interest rate swap agreements as effective cash flow hedges (collectively, the “Designated Hedges”). We assess the effectiveness of these interest rate swap cash flow hedging relationships on an ongoing basis. The effect of these interest rate cap agreements and interest rate swap agreements is to reduce the variability of interest payments due to changes in LIBOR.

The fair value of Hedging Derivatives that are in an asset position are included in other assets, net and those in a liability position are included in other liabilities on our condensed consolidated balance sheets. For Non-Designated Hedges, the related changes in fair value are reflected within interest expense in the condensed consolidated statements of operations. For Designated Hedges, the effective portion of the related changes in fair value is reported as a component of other comprehensive income (loss) on our condensed consolidated balance sheets and reclassified into earnings as interest expense in our condensed consolidated statements of operations when the hedged transactions affect earnings; the ineffective portion of the changes in fair value is reflected directly within interest expense in the condensed consolidated statements of operations.SeeNote 7for further discussion of derivative financial instruments.

Share-Based Compensation Expense

Prior to the IPO, we recognized share-based compensation expense for incentive compensation units granted by the Invitation Homes Partnerships (the “Class B Units”). In connection with and subsequent to the IPO, we issued restricted stock units (“RSUs”) that settle in shares of common stock and restricted shares of common stock (“RSAs”) for which share-based compensation expense is recognized.

We recognized share-based compensation expense for the Class B Units based on the estimated fair value of the Class B Units and vesting conditions of the related incentive unit agreements. Since the Class B Units granted by IH1 were granted to employees of the Manager, a wholly owned subsidiary of IH1, the related share-based compensation expense was based on the grant-date fair value of the units and recognized in expense over the service period. Because units in IH2, IH3, IH4, IH5, and IH6 were granted to non-employees of those respective partnerships, fair value was remeasured for non-vested units at the end of each reporting period. The fair value of the Class B Units was determined based on a valuation model that took into account discounted cash flows and a market approach based on comparable companies and transactions.

We recognize share-based compensation expense for the RSUs and RSAs based on their grant-date fair value, net of expected forfeitures, over the service period from the grant date to vest date for each tranche or when any applicable performance conditions are met in accordance with the related RSU and RSA agreements. The grant-date fair value of RSUs and RSAs is generally based on the closing price of our common stock on the grant date except for market based RSU grant‑date fair values which are based on Monte-Carlo option pricing models.

Additional compensation expense is recognized if modifications to existing incentive compensation unit, RSU, or RSA agreements result in an increase in the post-modification fair value of the units that exceeds their pre-modification fair value. Share-based compensation expense is presented as a component of general and administrative expense and property management expense in our condensed consolidated statements of operations. See Note 10 for further discussion of share-based compensation expense.

Income Taxes

As a result of the Pre-IPO Transactions more fully described in Note 1, the Invitation Homes Partnerships transferred all assets, liabilities, and operations to INVH through certain mergers and related transactions, including the IH2 Property Holdings Merger. IH2 Property Holdings Inc. had previously elected to qualify as a Real Estate Investment Trust “REIT” for United States federal income tax purposes commencing with its taxable year ended December 31, 2013. Effective upon consummation of the IH2 Property Holdings Merger, INVH became subject to such REIT election.

We intend to continue to operate as a REIT, and our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Internal Revenue Code of 1986, as amended (the “Code”), which are related to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If we qualify for taxation as a REIT, we will generally not be subject to United States federal corporate income tax on our taxable income that is currently distributed to shareholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. If we fail to qualify as a REIT in any taxable year, we will be subject to federal taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for subsequent taxable years.

Even if we qualify as a REIT, we may be subject to United States federal income and excise taxes in various situations, such as on our undistributed income. We also will be required to pay a 100% tax on any net income on non-arm’s length transactions between us and a TRS, defined below, and on any net income from sales of assets that were held for sale to customers in the ordinary course. In addition, we could also be subject to the alternative minimum tax on items of tax preference. State and local tax laws may not conform to the United States federal income tax treatment, and we may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business. Any taxes imposed on us reduce our operating cash flow and net income.

As part of the formation of INVH, each of the Invitation Homes Partnerships (other than IH2) transferred assets into INVH solely in exchange for shares of common stock. Certain of the assets contributed contained built-in gains. Prior to the Pre-IPO Transactions, the contributing partnerships had indirect C corporation partners to which a portion of the built-in gain would be allocated. As a result, if we dispose of any such assets during the five-year period following the date the REIT acquired such assets, we will be subject to the regulations under Section 337(d) of the Code. In general terms, such regulations subject the REIT to the maximum corporate level tax rate on the lesser of (i) such built-in gains and (ii) the gain recognized by the REIT upon a taxable disposition of the contributed assets. We may, however, choose not to sell such assets during such five-year period or to sell them in a non-taxable transaction. As such, the potential taxes associated with these built-in gains are not estimable.

Certain of our operations or a portion thereof, are conducted through taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a subsidiary C-corporation that has not elected REIT status and as such is subject to United States federal and state corporate income tax. We use TRS entities to facilitate our ability to perform non-real estate related activities and/or perform non-customary services for residents that cannot be offered directly by a REIT.

For our TRS entities, deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for United States federal income tax purposes and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. We reduce deferred tax assets by recording a valuation allowance when we determine, based on available evidence, that it is more likely than not that the assets will not be realized. We recognize the tax consequences associated with intercompany transfers between the REIT and TRS entities when the related assets affect our GAAP net income or loss, generally through depreciation, impairment losses, or sales to third-party entities.

Tax benefits associated with uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.

We file income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. Our filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years varying based upon the date of incorporation of the specific entity. The years open to examination range from 2013 to present.

Recent Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies the definition of modification with the objective of evaluating whether modification accounting should be applied when there are changes to the terms or conditions of a share-based payment award. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that period changes in the total of cash, cash equivalents, and amounts generally described as restricted cash or cash equivalents are explained in the statement of cash flow. Thus, amounts generally described as restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning and ending balances shown in the statement of cash flows. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies the classification of certain cash receipts and cash payments including debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims, and beneficial interests in securitization transactions. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than one year. Lessor accounting will remain similar to lessor accounting under current GAAP, while aligning with the FASB’s new revenue recognition guidance. The new standard will be effective for us for annual reporting periods beginning after December 15, 2018, and for interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance on revenue recognition and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, most industry-specific guidance and some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. The standard’s core principle is that a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These judgments may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. At that time, we may adopt the full retrospective approach or the modified retrospective approach. Early adoption is permitted only as of annual reporting periods, and interim periods therein, beginning after December 15, 2016. We are currently evaluating the method of adoption of this guidance and do not anticipate that the adoption of this guidance will have a material impact on our condensed consolidated financial statements as most of our revenue is from rental revenues, which this standard does not cover.

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Investments in Single-Family Residential Properties

6 Months Ended

Jun. 30, 2017

Real Estate [Abstract]

Investments in Single-Family Residential Properties

Note 3—Investments in Single-Family Residential Properties

The following table sets forth the net carrying amount associated with our properties by component:

	June 30, 2017			December 31, 2016
Land	$	2,716,934		$	2,703,388
Single-family residential property	6,856,390			6,829,579
Capital improvements	228,419			229,890
Equipment	31,778			31,988
Total gross investments in the properties	9,833,521			9,794,845
Less: accumulated depreciation	(917,961		)	(792,330		)
Investments in single-family residential properties, net	$	8,915,560		$	9,002,515

As of June 30, 2017 and December 31, 2016, the carrying amount of the residential property above included $121,831 and $122,009, respectively, of capitalized acquisition costs (excluding purchase price), along with $61,970 and $62,169, respectively, of capitalized interest, $25,907 and $26,050, respectively, of capitalized property taxes, $4,729 and $4,764, respectively, of capitalized insurance, and $2,879 and $2,890, respectively, of capitalized HOA fees.

During the three months endedJune 30, 2017 and 2016, we recognized $66,699 and $64,775, respectively, of depreciation expense related to the components of the properties, and $816 and $1,304, respectively, of depreciation and amortization related to corporate furniture and equipment. These amounts are included in depreciation and amortization on the condensed consolidated statements of operations. Further, during the three months endedJune 30, 2017 and 2016, impairments totaling $95 and $519, respectively, have been recognized and are included in impairment and other on the condensed consolidated statements of operations.

During the six months endedJune 30, 2017 and 2016, we recognized $133,352 and $129,184, respectively, of depreciation expense related to the components of the properties, and $1,740 and $2,597, respectively, of depreciation and amortization related to corporate furniture and equipment. These amounts are included in depreciation and amortization on the condensed consolidated statements of operations. Further, during the six months endedJune 30, 2017 and 2016, impairments totaling $1,132 and $519, respectively, have been recognized and are included in impairment and other on the condensed consolidated statements of operations.

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Restricted Cash

6 Months Ended

Jun. 30, 2017

Cash and Cash Equivalents [Abstract]

Restricted Cash

Note 4—Restricted Cash

Pursuant to the terms of the credit facility agreements and the mortgage loans described in Note 6, we are required to establish, maintain, and fund from time to time (generally either monthly or at the time borrowings are funded) certain specified reserve accounts. These reserve accounts include, but are not limited to, the following types of accounts: (i) completion reserves; (ii) renovation reserves; (iii) leasing commission reserves; (iv) debt service reserves; (v) property tax reserves; (vi) insurance premium and deductible reserves; (vii) standing reserves; (viii) special reserves; (ix) termination fee reserves; (x) eligibility reserves; (xi) collections; and (xii) non-conforming property reserves. In February 2017, the credit facilities were repaid in full and all related reserve accounts were released. Prior to that time, the credit facility reserve accounts were under the sole control of the Administrative Agent, as defined in the credit facility agreements. The reserve accounts associated with the mortgage loans are under the sole control of the loan servicer. Additionally, we hold security deposits pursuant to resident lease agreements that are required to be segregated. Accordingly, amounts funded to these reserve accounts and security deposit accounts have been classified within our condensed consolidated balance sheets as restricted cash. We also hold letters of credit as required by certain of our insurance policies.

The amounts funded, and to be funded, to the reserve accounts are subject to formulae included in the credit facility agreements and mortgage loan agreements and are to be released to us subject to certain conditions specified therein being met. To the extent that an event of default were to occur, the loan servicer (as it relates to the mortgage loans) has discretion to use such funds to either settle the applicable operating expenses to which such reserves relate or reduce the allocated loan amount associated with a residential property of ours.

As of June 30, 2017 and December 31, 2016, the balances in our restricted cash accounts are as set forth in the table below. At December 31, 2016, no amounts were funded to the completion, renovation, leasing commission, debt service, termination fee, and nonconforming property reserve accounts as the conditions specified in the credit facility agreements that require such funding did not exist, and none are required at June 30, 2017 as the credit facilities had been repaid in full.

	June 30, 2017		December 31, 2016
Resident security deposits	$	88,871	$	86,239
Collections	12,281		42,767
Property taxes	32,449		52,256
Insurance premium and deductible	—		4,432
Standing and capital expenditure reserves	1,754		24,409
Special reserves	—		34
Eligibility reserves	398		9,274
Letters of credit	2,511		2,681
Total	$	138,264	$	222,092

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Other Assets

6 Months Ended

Jun. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Note 5—Other Assets

At June 30, 2017 and December 31, 2016, the balances in other assets, net are as follows:

	June 30, 2017		December 31, 2016
Investments in debt securities, net	$	230,498	$	209,337
Held for sale assets(1)	11,191		45,062
Prepaid expenses	25,418		21,883
Deferred leasing costs, net	7,327		7,710
Rent and other receivables, net	9,847		11,604
Deferred financing costs, net	8,689		—
Interest rate swap hedges (see Note 7)	2,955		—
Corporate fixed assets, net	6,001		6,247
Other	4,642		7,782
Total	$	306,568	$	309,625

(1) As of June 30, 2017 and December 31, 2016 (unaudited), 74 and 391 properties, respectively, were classified as held for sale.

Investments in Debt Securities, net

In connection with certain of the Securitizations, as defined in Note 6, we previously acquired $193,045 of Class G certificates. In 2016, we purchased $16,423 of Class F certificates, which had an unamortized discount of $33 and $131 as of June 30, 2017 and December 31, 2016, respectively. During the six months endedJune 30, 2017, we purchased $55,500 of Class B certificates, which had an unamortized discount of $3,521 as of June 30, 2017, and received repayments of $30,916 from retained debt securities. These investments in debt securities are classified as held to maturity investments (for additional information about the Securitizations, see Note 6). As of June 30, 2017 and December 31, 2016, there were no other than temporary impairments. As of June 30, 2017, the Class F and G certificates are scheduled to mature over the next 3 to 14 months, and the Class B certificates are scheduled to mature in 10 years.

Rent and Other Receivables, net

We lease our properties to residents pursuant to leases that generally have an initial contractual term of at least 12 months, provide for monthly payments, and are cancelable by the resident and us under certain conditions specified in the related lease agreements.

Included in other assets, net within the condensed consolidated balance sheets, is an allowance for doubtful accounts of $1,359 and $1,183, as of June 30, 2017 and December 31, 2016, respectively.

Deferred Financing Costs, net

In connection with our Revolving Facility (as defined in Note 6), we incurred $9,673 of financing costs during the six months endedJune 30, 2017, which have been deferred as other assets, net on our condensed consolidated balance sheet due to the line of credit features of the Revolving Facility. These deferred financing costs are being amortized as interest expense on a straight line basis over the term of the Revolving Facility.

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Debt

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Debt

Note 6—Debt

Mortgage Loans

As of June 30, 2017, we have completed eight securitization transactions (the “Securitizations” or the “mortgage loans”) collateralized by homes owned by the respective Invitation Homes Borrower Entities. The proceeds from the mortgage loans were used to fund (i) partial repayments of the then-outstanding IH1 and IH2 credit facilities and other securitizations, (ii) initial deposits in the reserve accounts, (iii) closing costs in connection with the mortgage loans, (iv) general costs associated with our operations, and (v) distributions and dividends to the Pre-IPO Owners.

The following table sets forth a summary of the mortgage loan indebtedness as of June 30, 2017 and December 31, 2016:

				Outstanding Principal Balance(3)
	Maturity Date	Interest Rate(2)	Range of Spreads	June 30, 2017(4)			December 31, 2016
IH1 2013-1	N/A	N/A	115-365 bps	$	—		$	462,431
IH1 2014-1	N/A	N/A	100-375 bps	—			978,231
IH1 2014-2(1)(5)	September 9, 2018	3.13%	110-400 bps	704,523			710,664
IH1 2014-3(1)	December 9, 2017	3.56%	120-500 bps	147,634			766,753
IH2 2015-1, net(1)(6)	March 9, 2018	3.60%	145-430 bps	529,497			531,318
IH2 2015-2(1)	June 9, 2018	3.18%	135-370 bps	628,988			630,283
IH2 2015-3(1)(7)	August 9, 2018	3.41%	130-475 bps	1,170,395			1,184,314
IH1 2017-1, net(8)	June 9, 2027	4.17%	N/A	996,479			—
Total Securitizations				4,177,516			5,263,994
Less deferred financing costs, net				(18,850		)	(9,256		)
Total				$	4,158,666		$	5,254,738

(1) The initial maturity term of each of these mortgage loans istwoyears, individually subject to three, one-year extension options at the borrower’s discretion (provided that there is no continuing event of default under the loan agreement and the borrower obtains a replacement interest rate cap agreement in a form reasonably acceptable to the lender). Our IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 mortgage loans have exercised the first extension options, and IH1 2014-2 has exercised the second option.The maturity dates above are reflective of all extensions that have been exercised.

(2) For each of our first seven mortgage loans, interest rates are based on a weighted average spread to LIBOR; as ofJune 30, 2017 LIBOR was1.23%. Our IH1 2017-1 mortgage loan bears interest at a fixed rate of4.17%per annum equal to the market determined pass-through rate payable on the certificates, plus applicable servicing fees.

(3) Outstanding Principal Balance is net of discounts and does not include capitalized deferred financing costs, net.

(4) From July 1, 2017 toAugust 7, 2017, we made prepayments of$848on our mortgage loans related to the disposition of properties.

(5) On August 3, 2017, we exercised our secondone-year extension option on IH1 2014-2, extending the maturity from September 9, 2017 to September 9, 2018 (see Note 15).

(6) Net of unamortized discount of $0and$55as ofJune 30, 2017andDecember 31, 2016, respectively.

(7) On July 12, 2017, we exercised our first one-year extension option on IH2 2015-3, extending the maturity from August 9, 2017 to August 9, 2018 (see Note 15).

(8) Net of unamortized discount of$3,521as ofJune 30, 2017.

Securitization Transactions

IH1 2013-1: In November 2013, we completed our first securitization transaction (“IH1 2013-1”), in which 2013-1 IH Borrower L.P. (“S1 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a sixcomponent term loan to S1 Borrower in the amount of$479,137. All sixcomponents of the loan were sold at par. On February 6, 2017, the outstanding balance of IH1 2013-1 was repaid in full.

IH1 2014-1: In May 2014, we completed our second securitization transaction (“IH1 2014-1”), in which 2014-1 IH Borrower L.P. (“S2 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third party lender made asixcomponent term loan to S2 Borrower in the amount of $993,738. All six components of the loan were sold at par. On February 6, 2017 and March 9, 2017, we made voluntary prepayments of$291,500 and $260,000, respectively. On April 28, 2017, the outstanding balance of IH1 2014-1 was repaid in full.

IH1 2014-2: In August 2014, we completed our third securitization transaction (“IH1 2014-2”), in which 2014-2 IH Borrower L.P. (“S3 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender made a term loan comprised of (1) sixfloating rate components and (2)one fixed rate component to S3 Borrower in the amount of$719,935. Of the sevenloan components, the Class A, B, C, D and G certificates were sold at par; however, the Class E and F certificates were sold at a total discount of $3,970. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning October 9, 2014 and continuing monthly thereafter.

IH1 2014-3: In November 2014, we completed our fourth securitization transaction (“IH1 2014-3”), in which 2014-3 IH Borrower L.P. (“S4 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH1, executed a loan agreement with a third-party lender. The third-party lender issued a term loan comprised of (1) six floating rate components and (2) one fixed rate component to S4 Borrower in the amount of $769,322. Of thesevencomponents, the Class B and G certificates were sold at par; however, the Class A, C, D, E and F certificates were sold at a total discount of $7,235. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning December 9, 2014 and continuing monthly thereafter.On May 9, 2017 and June 9, 2017, we made voluntary prepayments of$510,000and$100,000, respectively, from the proceeds of IH1 2017-1 securitization transaction and cash flows from operations.

IH2 2015-1: In January 2015, we completed our fifth securitization transaction (“IH2 2015-1”), in which 2015-1 IH2 Borrower L.P. (“S5 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a sevencomponent term loan to S5 Borrower in the amount of $540,854. Six of the sevencomponents, the Class A, B, C, D, E, and G certificates were sold at par; however, the Class F certificates were sold at a total discount of $622. The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheets as ofJune 30, 2017 and December 31, 2016. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning March 9, 2015 and continuing monthly thereafter.

IH2 2015-2: In April 2015, we completed our sixth securitization transaction (“IH2 2015-2”), in which 2015-2 IH2 Borrower L.P. (“S6 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made asevencomponent term loan to S6 Borrower in the amount of$636,686. All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning June 9, 2015 and continuing monthly thereafter.

IH2 2015-3: In June 2015, we completed our seventh securitization transaction (“IH2 2015-3”), in which 2015-3 IH2 Borrower L.P. (“S7 Borrower”), a newly-formed special purpose entity and wholly owned subsidiary of IH2, executed a loan agreement with a third-party lender. The third-party lender made a sevencomponent term loan to S7 Borrower in the amount of$1,193,950. All of the components of the loan were sold at par. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning August 7, 2015 and continuing monthly thereafter.

IH1 2017-1: In April 2017, we completed our eighth securitization transaction (“IH1 2017-1”), in which 2017-1 IH Borrower L.P. (“S9 Borrower”), a special purpose entity previously formed in connection with IH1 2014-1 and wholly owned subsidiary of IH1, entered into a loan agreement with Wells Fargo Bank, National Association (the “FNMA Loan”), providing for aten-year, fixed rate mortgage loan comprised of twocomponents with a total principal amount of $1,000,000, secured by first priority mortgages on a portfolio of7,204of our homes. The Class A certificates, which benefit from Fannie Mae’s guaranty of timely payment of principal and interest, were sold at par. The Class B certificates represent a beneficial interest in the most subordinate component of the FNMA Loan and were sold at a total discount of$3,580. The unamortized balance of this discount is included in mortgage loans, net on our condensed consolidated balance sheet as of June 30, 2017. We are obligated to make monthly payments of interest with the first payment being due upon the closing of the loan, and subsequent payments beginning June 9, 2017 and continuing monthly thereafter.

Concurrent with the execution of each loan agreement, the respective third-party lender sold each loan it originated with us to individual depositor entities (the “Depositor Entities”) who subsequently transferred each loan to Securitization-specific trust entities (the “Trusts”). The Depositor Entities associated with the IH1 2014-2, IH1 2014-3 and IH1 2017-1 securitizations are wholly owned subsidiaries of IH1, the Depositor Entities associated with the IH2 2015-1, IH2 2015-2, and IH2 2015-3 securitizations are wholly owned subsidiaries of IH2, and the Depositor Entities associated with the IH1 2013-1 and IH1 2014-1 securitizations were wholly owned by unaffiliated third parties.

We accounted for the transfer of the individual Securitizations from the Depositor Entities wholly owned by IH1 and IH2 to the respective Trusts as a sale under ASC Topic 860, Transfers and Servicing, with no resulting gain or loss as the Securitizations were originated by the lender and immediately transferred at the same fair market value.

As consideration for the transfer of each loan to the Trusts, the Trusts issued certificate classes which mirror the components of the individual loan agreements (collectively, the “Certificates”) to the Depositor Entities, except that Class R certificates do not have related loan components as they represent residual interests in the Trusts. The Certificates represent the entire beneficial interest in the Trusts. Following receipt of the Certificates, the Depositor Entities sold the Certificates to investors using the proceeds as consideration for the loans sold to the Depositor Entities by the lenders. These transactions hadno effect on our condensed consolidated financial statements other than with respect to the Class B certificates purchased by the Operating Partnership, and the Class G certificates purchased by IH1 and IH2.

For IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3, the Trusts made the Class A through Class F certificates available for sale to both domestic and foreign investors. With the introduction of foreign investment, IH1 and IH2, as sponsors of the respective loans, are required to retain a portion of the risk that represents a material net economic interest in each loan. The Class G certificates for IH1 2014-2, IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 are equal to 5%of the original principal amount of the loans in accordance with the agreements. Per the terms of the Securitization agreements, the Class G certificates are restricted certificates and were made available exclusively to IH1 and IH2, as applicable. The Class G certificates are principal only and bear a stated annual interest rate of 0.0005%. The Class G certificates are classified as held to maturity investments and are recorded in other assets, net on the condensed consolidated balance sheets (see Note 5).

For IH1 2017-1, the Trust made the Class A certificates available for sale to both domestic and foreign investors. In accordance with risk retention requirements of Regulation RR (the “Risk Retention Rules”) under the Exchange Act, the Operating Partnership, as the loan sponsor, is required to retain a portion of the credit risk that represents not less than5%of the aggregate fair value of the loan as of the closing date. Per the terms of the agreement, the Class B certificates are restricted certificates that were made available exclusively to the Operating Partnership. The Class B certificates pay interest and bear a stated annual interest rate of4.17% plus applicable servicing fees. The Class B certificates are classified as held to maturity investments and are recorded in other assets, net on the condensed consolidated balance sheets (see Note 5).

The Trusts are structured as pass through entities that receive principal and interest from the Securitizations and distribute those payments to the holders of the Certificates. The assets held by the Trusts are restricted and can only be used to fulfill the obligations of those entities. The obligations of the Trusts do not have any recourse to the general credit of any entities in these condensed consolidated financial statements. We have evaluated our interests in the Class B and G certificates of the Trusts and determined that they do not create a more than insignificant variable interest in the Trusts. Additionally, the Class B and G certificates do not provide us with any ability to direct the activities that could impact the Trusts’ economic performance. Therefore, we do not consolidate the Trusts.

General Terms

The general terms that apply to all of the mortgage loans require us to maintain compliance with certain affirmative and negative covenants. Affirmative covenants with which we must comply include our, and certain of our affiliates’, compliance with (i) licensing, permitting and legal requirements specified in the loan agreement, (ii) organizational requirements of the jurisdictions in which we, and certain of our affiliates, are organized, (iii) federal and state tax laws, and (iv) books and records requirements specified in the respective loan agreements. Negative covenants with which we must comply include our, and certain of our affiliates’, compliance with limitations surrounding (i) the amount of our indebtedness and the nature of our investments, (ii) the execution of transactions with affiliates, (iii) the Manager, and (iv) the nature of our business activities. At June 30, 2017, and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants.

Prepayments

For the mortgage loans, prepayments of amounts owed are generally not permitted by us under the terms of the respective loan agreements unless such prepayments are made pursuant to the voluntary election and mandatory provisions specified in such agreements. The specified mandatory provisions become effective to the extent that a property becomes characterized as a disqualified property, a property is sold, and/or upon the occurrence of a condemnation or casualty event associated with a property. To the extent either a voluntary election is made, or a mandatory prepayment condition exists, in addition to paying all interest and principal, we must also pay certain breakage costs as determined by the loan servicer and a spread maintenance premium if prepayment occurs before the month following the one year anniversary of the closing dates of each of the mortgage loans except for IH1 2017-1. For IH1 2017-1, prepayments on or before December 2026 will require a yield maintenance premium. For thesix months endedJune 30, 2017and2016, voluntary and mandatory prepayments totaling$2,083,012and$30,738, respectively, were made under the terms of the loan agreements.

Collateral

Collateral for the mortgage loans includes first priority mortgages on certain of our properties and a grant of a security interest in all of our personal property. The following table lists the gross carrying values of the single-family residential properties, including held for sale properties, pledged as collateral for the loans as of June 30, 2017 and December 31, 2016:

	Number of Homes(1)	June 30, 2017		December 31, 2016
IH1 2013-1	—	$	—	$	533,005
IH1 2014-1	—	—		1,124,069
IH1 2014-2	3,619	784,024		785,459
IH1 2014-3	3,915	844,870		850,056
IH2 2015-1	2,999	593,546		594,155
IH2 2015-2	3,507	744,001		744,070
IH2 2015-3	6,985	1,368,310		1,382,683
IH1 2017-1	7,204	1,241,282		—
Total	28,229	$	5,576,033	$	6,013,497

(1) The loans are secured by first priority mortgages on portfolios of single-family residential properties owned by S1 Borrower, S2 Borrower, S3 Borrower, S4 Borrower, S5 Borrower, S6 Borrower, S7 Borrower, and S9 Borrower. The numbers of homes noted above are as of June 30, 2017. As of December 31, 2016, a total of 30,900 homes (unaudited) were secured by the above-mentioned mortgage loans.

Debt Maturities Schedule

Future maturities of these mortgage loans as of June 30, 2017 are set forth in the table below:

Year	Principal(1)
2017	$	147,634
2018	3,033,403
2019 and thereafter	1,000,000
Total payments	4,181,037
Less discounts	(3,521		)
Total mortgage loans, net	$	4,177,516

(1) Each of the mortgage loans, except IH1 2017-1, are subject to threeone-year extension options at the borrower's discretion (upon approval from the lender), of which the IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 mortgage loans have exercised the first extension options, and IH1 2014-2 has exercised the second option.

New Credit Facility

On February 6, 2017, we entered into a loan agreement with a syndicate of banks, financial institutions and institutional lenders for a new credit facility (the “New Credit Facility”). The New Credit Facility provides $2,500,000of borrowing capacity and consists of a $1,000,000revolving facility (the “Revolving Facility”), which will mature on February 6, 2021, with a one-year extension option, and a $1,500,000term loan facility (the “Term Loan Facility”), which will matureon February 6, 2022. The Revolving Facility also includes borrowing capacity available for letters of credit and for short-term borrowings referred to as swing line borrowings, in each case subject to certain sublimits. The New Credit Facility provides us with the option to enter into additional incremental credit facilities (including an uncommitted incremental facility that provides us with the option to increase the size of the Revolving Facility and/or the Term Loan Facility by an aggregate amount of up to $1,500,000), subject to certain limitations. Proceeds from the Term Loan Facility were used to repay existing indebtedness and for general corporate purposes.

The following table sets forth a summary of the outstanding principal amounts under such loans as of June 30, 2017:

	Maturity Date	Interest Rate(1)	June 30, 2017
Term loan facility	February 6, 2022	3.03%	$	1,500,000
Revolving facility	February 6, 2021	N/A	—
Total			1,500,000
Less deferred financing costs, net			(13,471		)
Total			$	1,486,529

(1) Interest rate for the Term Loan Facility is based on LIBOR plus an applicable margin of 1.80%; as of June 30, 2017, LIBOR was 1.23%.

Interest Rate and Fees

Borrowings under the New Credit Facility bear interest, at our option, at a rate equal to a margin over either (a) a LIBOR rate determined by reference to the Bloomberg LIBOR rate (or comparable or successor rate) for the interest period relevant to such borrowing or (b) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus0.50%, and (3) the LIBOR rate that would be payable on such day for a LIBOR rate loan with a one-month interest period plus1.00%. The margin is based on a total leverage based grid. The margin for the Revolving Facility ranges from0.75% to 1.30%, in the case of base rate loans, and 1.75% to 2.30%, in the case of LIBOR rate loans. The margin for the Term Loan Facility ranges from0.70% to 1.30%, in the case of base rate loans, and 1.70% to 2.30%, in the case of LIBOR rate loans. In addition, the New Credit Facility provides that, upon receiving an investment grade rating on its non-credit enhanced, senior unsecured long term debt of BBB- or better from Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., or Baa3 or better from Moody’s Investors Service, Inc. (an “Investment Grade Rating Event”), we may elect to convert to a credit rating based pricing grid.

In addition to paying interest on outstanding principal under the New Credit Facility, we are required to pay a facility fee to the lenders under the Revolving Facility in respect of the unused commitments thereunder. The facility fee rate is based on the daily unused amount of the Revolving Facility and is either0.350% or 0.200% per annum based on the unused facility amount. Upon converting to a credit rating pricing based grid, the unused facility fee will no longer apply; and we will be required to pay a facility fee ranging from0.125% to 0.300%. We are also required to pay customary letter of credit fees.

Prepayments and Amortization

Noprepayment or amortization is required under the New Credit Facility. We are permitted to voluntarily repay amounts outstanding under the Term Loan Facility at any time without premium or penalty, subject to certain minimum amounts and the payment of customary “breakage” costs with respect to LIBOR loans. Once repaid,nofurther borrowings will be permitted under the Term Loan Facility.

General Terms

The New Credit Facility contains certain customary affirmative and negative covenants and events of default. Such covenants will, among other things, restrict, subject to certain exceptions, our ability and that of the Subsidiary Guarantors (as defined below) and their respective subsidiaries to (i) engage in certain mergers, consolidations or liquidations, (ii) sell, lease or transfer all or substantially all of their respective assets, (iii) engage in certain transactions with affiliates, (iv) make changes to the our fiscal year, (v) make changes in the nature of our business and our subsidiaries and (vi) incur additional indebtedness that is secured on a pari passu basis with the New Credit Facility.

The New Credit Facility also requires us, on a consolidated basis with our subsidiaries, to maintain a (i) maximum total leverage ratio, (ii) maximum secured leverage ratio, (iii) maximum unencumbered leverage ratio, (iv) minimum fixed charge coverage ratio, (v) minimum unencumbered fixed charge coverage ratio and (vi) minimum tangible net worth. If an event of default occurs, the lenders under the New Credit Facility are entitled to take various actions, including the acceleration of amounts due under the New Credit Facility and all actions permitted to be taken by a secured creditor. AtJune 30, 2017, and through the date our financial statements were issued, we believe we were in compliance with all affirmative and negative covenants.

Guarantees and Security

The obligations under the New Credit Facility are guaranteed on a joint and several basis by each of our direct and indirect domestic wholly owned subsidiaries that own, directly or indirectly, unencumbered assets (the “Subsidiary Guarantors”), subject to certain exceptions. The guarantee provided by any Subsidiary Guarantor will be automatically released upon the occurrence of certain events, including if it no longer has a direct or indirect interest in an unencumbered asset or as a result of certain non-recourse refinancing transactions pursuant to which such Subsidiary Guarantor becomes contractually prohibited from providing its guaranty of the New Credit Facility. In addition, INVH may be required to provide a guarantee of the New Credit Facility under certain circumstances, including if INVH does not maintain its qualification as a REIT.

The New Credit Facility is collateralized by first priority or equivalent security interests in all the capital stock of, or other equity interests in any Subsidiary Guarantor, held by us and each of the Subsidiary Guarantors. The security interests granted under the New Credit Facility will be automatically released upon the occurrence of certain events, including upon an Investment Grade Rating Event or if the total net leverage ratio is less than or equal to 8.00:1.00 for four consecutive fiscal quarters.

Debt Maturities Schedule

Future maturities of the New Credit Facility as of June 30, 2017 are set forth in the table below:

Year	Principal
2022	$	1,500,000

Credit Facilities

All of the then-existing credit facilities were paid in full on February 6, 2017 in connection with the closing of our IPO. The following table sets forth a summary of the outstanding principal amounts of these credit facilities as ofJune 30, 2017 and December 31, 2016:

			Outstanding Principal Balance(1)
	Origination Date	Range of Spreads	June 30, 2017		December 31, 2016
IH1 2015	April 3, 2015	325 bps	$	—	$	85,492
IH2 2015	September 29, 2015	275 bps	—		43,859
IH3 2013	December 19, 2013	300-425 bps	—		932,583
IH4 2014	May 5, 2014	300-425 bps	—		529,866
IH5 2014	December 5, 2014	275-400 bps	—		564,348
IH6 2016	April 13, 2016	250-375 bps	—		165,437
Total			—		2,321,585
Less deferred financing costs, net			—		(6,044		)
Total			$	—	$	2,315,541

(1) Outstanding Principal Balance does not include capitalized deferred financing costs, net.

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Derivative Instruments

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Note 7—Derivative Instruments

From time to time, we enter into Hedging Derivatives to manage the economic risk of changes in interest rates. We do not enter into derivative transactions for speculative or trading purposes. Designated hedges are derivatives that meet the criteria for hedge accounting and for which we have elected to designate them as hedges. Non-Designated Hedges are derivatives that do not meet the criteria for hedge accounting or we have not elected to designate them as hedges.

Designated Hedges

We have entered into various interest rate swap agreements, as outlined in the table below. Certain of the Invitation Homes Partnerships and certain Borrower Entities guaranteed the obligations under each of the interest rate swaps from the date the swaps were entered into through the date of the IPO. Each of these swaps was accounted for as a non-designated hedge until January 31, 2017, when the criteria for hedge accounting were met as a result of the Pre-IPO Transactions described in Note 1. At that time, we designated these swaps for hedge accounting purposes; and the effective portion of changes in the fair value of these swaps is recorded in other comprehensive income subsequent to that date.

The table below summarizes our interest rate swap instruments as of June 30, 2017:

Agreement Date	Forward Effective Date	Maturity Date	Strike Rate	Index	Notional Amount
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	$	750,000
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	750,000
January 12, 2017	February 28, 2017	August 7, 2020	1.59%	One-month LIBOR	1,100,000
January 13, 2017	February 28, 2017	June 9, 2020	1.63%	One-month LIBOR	595,000
January 20, 2017	February 28, 2017	March 9, 2020	1.60%	One-month LIBOR	325,000

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income on the condensed consolidated balance sheets and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During thesix months endedJune 30, 2017, such derivatives were used to hedge the variable cash flows associated with existing variable-rate interest payments. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Changes in fair value related to the ineffective portion of our Designated Hedges resulted in an unrealized gain of$38 for thesix months endedJune 30, 2017, which is included in interest expense in our condensed consolidated statements of operations.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next twelve months, we estimate that an additional $11,452will be reclassified to earnings as an increase to interest expense. There were no interest rate swap agreements outstanding during the six months ended June 30, 2016.

Non-Designated Hedges

Concurrent with entering into certain of the mortgage loan agreements, we entered into and maintain interest rate cap agreements with terms and notional amounts equivalent to the terms and amounts of the loans made by the third-party lenders and strike prices ranging from approximately 2.52% to 3.09%(collectively, the “Strike Prices”). To the extent that the maturity date of one or more of the loans is extended through an exercise of one or more of the extension options, replacement or extension interest rate cap agreements must be executed with terms similar to those associated with the initial interest rate cap agreements and strike prices equal to the greater of the Strike Prices and the interest rate at which the debt service coverage ratio (as defined) is not less than 1.2 to 1.0. The interest rate cap agreements, including all of our rights to payments owed by the counterparty and all other rights, have been pledged as additional collateral for the loans.

Changes in fair value related to Non-Designated Hedges resulted in unrealized losses of $3,802 for the six months endedJune 30, 2017, which are included in interest expense in our condensed consolidated statements of operations. Of the unrealized losses, $3,674 related to changes in value on interest rate swaps prior to their designation on January 31, 2017, and $128 related to the non-designated interest rate caps.

Tabular Disclosure of Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets

The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016:

	Asset Derivatives					Liability Derivatives
		Fair Value at:					Fair Value at:
	Balance Sheet Location	June 30, 2017		December 31, 2016		Balance Sheet Location	June 30, 2017		December 31, 2016
Derivatives designated as hedging instruments:
Interest rate swaps	Other assets	$	2,955	$	—	Other liabilities	$	9,872	$	—
Derivatives not designated as hedging instruments:
Interest rate swaps	Other assets	—		—		Other liabilities	—		8,683
Interest rate caps	Other assets	—		29		Other liabilities	—		—
Total		$	2,955	$	29		$	9,872	$	8,683

Tabular Disclosure of the Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months endedJune 30, 2017 and 2016:

	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)					Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)
	For the Three Months Ended June 30,						For the Three Months Ended June 30,						For the Three Months Ended June 30,
	2017			2016			2017			2016			2017		2016
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(14,759	)	$	—	Interest expense	$	(6,059	)	$	—	Interest expense	$	37	$	—

	Location of Gain (Loss) Recognized in Net Loss on Derivative	Amount of Gain (Loss) Recognized in Net Loss on Derivative
		For the Three Months Ended June 30,
		2017			2016
Derivatives not designated as hedging instruments:
Interest rate swaps	Interest expense	$	—		$	—
Interest rate caps	Interest expense	(50		)	—
Total		$	(50	)	$	—

The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the six months endedJune 30, 2017 and 2016:

	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)					Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)
	For the Six Months Ended June 30,						For the Six Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016			2017		2016
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(4,198	)	$	—	Interest expense	$	(8,770	)	$	—	Interest expense	$	38	$	—

	Location of Gain (Loss) Recognized in Net Loss on Derivative	Amount of Gain (Loss) Recognized in Net Loss on Derivative
		For the Six Months Ended June 30,
		2017			2016
Derivatives not designated as hedging instruments:
Interest rate swaps	Interest expense	$	(3,674	)	$	—
Interest rate caps	Interest expense	(128		)	—
Total		$	(3,802	)	$	—

Credit-Risk-Related Contingent Features

We have agreements with our derivative counterparties for our interest rate swap agreements that contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness.

As of June 30, 2017, the fair value of interest rate swap derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $10,445. As of June 30, 2017, we have not posted any collateral related to these agreements. If we have breached any of these provisions at June 30, 2017, we could have been required to settle its obligations under the agreements at their termination value of $10,445.

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Equity

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Equity

Note 8—Equity

Shareholders’ Equity

In connection with our IPO, we issued 310,376,634 shares of common stock to the public and the Pre-IPO Owners and 3,290,126 RSUs (see Note 10), and our IPO raised $1,692,058, net of underwriting discount, and before offering costs of $5,726.

To qualify as a REIT, we are required to distribute annually to our shareholders at least 90% of our REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and to pay tax at regular corporate rates to the extent that we annually distribute less than 100% of our net taxable income. We intend to pay quarterly dividends to our shareholders, which in the aggregate are approximately equal to or exceed our net taxable income in the relevant year.

On May 31, 2017 we paid a$0.06dividend per share; and on August 3, 2017, we declared an $0.08dividend per share to stockholders of record on August 15, 2017, which is payable on August 31, 2017.

Combined Equity

Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure. As described in Note 1, IH1, IH3, IH4, IH5, and IH6 are partnerships. These entities each had limited partners and a general partner (the “Class A Partners”), along with a board of directors designated in the respective limited partnership agreements. IH2 was a Delaware corporation and had issued 1,000 shares of common stock and 113 shares of Series A Preferred Stock. IH2 had a board of directors elected by the common shareholders. The same board of directors was responsible for directing the significant activities of the Invitation Homes Partnerships and the Operating Partnership on a combined basis.

The IH2 Series A Preferred Stock ranked, in respect of rights to the payment of dividends and the distribution of assets in the event of any liquidation or dissolution, senior to the IH2 common stock. Holders of such IH2 Series A Preferred Stock shares were entitled to receive cumulative cash dividends at the rate of 12.0% per annum of the total of a liquidation preference. On January 31, 2017, in connection with the Pre-IPO Transactions, the Series A Preferred Stock was redeemed for $1,153, inclusive of the redemption premium and accrued and unpaid dividends to that date. No dividends were declared or paid with respect to the Series A Preferred Stock during the six months endedJune 30, 2016. As of December 31, 2016, there were no dividend amounts declared and outstanding related to the 12.0% per annum dividend requirements of the Series A Preferred Stock.

Profits and losses, and cash distributions were allocated in accordance with the terms of the respective entity’s organizational documents. We made no distributions to our equity investors, and we received $138,002 of contributions during the six months endedJune 30, 2016.

As further described in Note 10, we granted certain individuals incentive compensation units in IH1, IH2, IH3, IH4, IH5, and IH6, which consisted of Class B units that were accounted for as a substantive class of equity due to the terms of the agreements and rights of the holders. We previously made distributions to certain Class B unitholders in the form of non-recourse cash advances totaling $11,023. Any amounts distributed to the holders of the Class B units whose Class B units were converted in connection with the Pre-IPO Transactions (see Note 10), reduced the number of converted shares common stock received by amounts previously paid to such Class B unitholders as advance distributions. As a result of the Pre-IPO Transactions, there are no longer any Class B Units outstanding.

We previously executed notes receivables with certain Class B unitholders (the “Class B Notes”) and funded $20,228 pursuant to those note agreements, of which $1,527, including accrued interest had been repaid as of December 31, 2016. On January 5, 2017, $7,723 of Class B Notes, including accrued interest, were canceled, and the transaction was accounted for as a distribution to the underlying unitholder. As part of the Pre-IPO Transactions, IH1 assigned $11,963, including accrued interest, of Class B Notes to a wholly owned subsidiary of the Pre-IPO Owners that was formed in connection with the reorganization described in Note 1, and the transaction was accounted for as a distribution. The Class B Notes were secured by certain of the Class B units of the makers of the Class B Notes and were otherwise non-recourse to the makers. The Class B Notes matured at the earlier of a liquidation event or defined dates in 2024 and bore interest of 1.57% to 1.97% per annum. As such, the Class B Notes were recorded as a component of combined equity on our condensed consolidated balance sheet as of December 31, 2016.

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Related Party Transactions

6 Months Ended

Jun. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Note 9—Related Party Transactions

Through December 31, 2014, certain related parties provided us with consulting services for which we recorded payables. We also made offsetting income tax payments related to distributions on behalf of these related parties. During the year ended December 31, 2016, we repaid the $1,959 outstanding as of December 31, 2015.

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Share-Based Compensation

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 10—Share-Based Compensation

We have share-based compensation programs for the purpose of retaining certain key employees. Prior to the IPO, the program consisted of incentive compensation units, the Class B Units, granted in the form of profits interests in the Invitation Homes Partnerships. In connection with and subsequent to the IPO, we granted awards in the form of RSUs that settle in shares of common stock of INVH and RSAs that are restricted shares of common stock of INVH.

Profits Interests — Class B Units

Prior to the IPO, the Invitation Homes Partnerships granted incentive compensation units to certain key employees, which were profits interests for United States federal income tax purposes. The Class B Units were accounted for as a substantive class of equity and contained both service based and performance based vesting criteria. Recognition of compensation expense was recorded based on whether or not the award recipient was an employee of the Manager, a wholly owned subsidiary of IH1, resulting in some awards being recognized based on grant-date fair value and others being remeasured at each reporting period until the actual vesting date as required for non-employee awards. Prior to the IPO, none of the performance based vesting criteria had been achieved, and as such through the date of the IPO, no compensation expense had been recorded for performance based Class B Units. However, the IPO triggered achievement of the performance based criteria and effectively converted all such awards into service based awards.

2017 New Class B Unit Awards: Pursuant to an amended and restated partnership agreement, on January 5, 2017, IH6 issued certain individuals a total of 9,650 Class B Units that were expected to vest based on terms and conditions similar to all other Class B Units. In January 2017, an additional 188 Class B Units in total were issued from IH1, IH2, and IH3.

2017 Class B Unit Conversion: The Pre-IPO Transactions described in Note 1 resulted in accelerated vesting of 7,520 Class B Units held by certain unitholders which resulted in additional share-based compensation expense of $11,601 during the six months endedJune 30, 2017. On January 31, 2017, in connection with the IPO, all of the Class B Units held by current employees of the Manager (except for 3,878 fully vested Class B Units awarded to a certain unitholder) were either converted into shares of INVH common stock or canceled based on the value of the Class B Units implied by the per share price of common stock sold to the public in the IPO. As such, a total of 730 Class B Units were converted into 62,529 RSAs, and 17,669 Class B Units were canceled for no consideration. For the Class B Units converted into RSAs, vesting and other terms of the RSAs delivered in the conversion have the same vesting and other terms applicable to the corresponding Class B Units converted.

Additionally, the obligations under the remaining 40,992 fully vested Class B Units, including those of the unitholders who are not current employees of the Manager and the one employee unitholder noted above that did not convert, were converted into similar units of newly formed subsidiaries of the Pre-IPO Owners. All Class B Units held by former employees of the Manager are fully vested.

The following table summarizes the activity related to the Class B Units for the period from December 31, 2016 through January 31, 2017, the date at which they were all canceled or converted:

	Class B Units
	Employee					Non-employee					Total Class B Units
	Number of Units		Weighted Average Fair Value			Number of Units		Weighted Average Fair Value			Number of Units		Weighted Average Fair Value
Balance, December 31, 2016	9,915		$	4.2		39,638		$	2.5		49,553		$	2.9
Granted	85		14.0			9,753		—			9,838		0.1
Converted to RSAs	(245	)	(3.4		)	(485	)	(0.8		)	(730	)	(1.7		)
Canceled	(555	)	(8.2		)	(17,114	)	(0.4		)	(17,669	)	(0.6		)
Converted to Units of affiliated entities	(9,200	)	(4.0		)	(31,792	)	(2.9		)	(40,992	)	(3.2		)
Balance, January 31, 2017	—		$	—		—		$	—		—		$	—

As of January 31, 2017, no Class B Units were outstanding.

RSAs and RSUs Issued by INVH

RSAs: In connection with the conversion of the Class B Units in January 2017, we issued 62,529 RSAs, of which 54,729 were fully vested as of June 30, 2017, and the remaining 7,800 non-vested RSAs will vest in accordance with the original terms of the Class B Unit award agreements. The conversion of the Class B Units into RSAs resulted in a modification of the awards of which some were previously accounted for as non-employee awards. The modification resulted in the reversal of $246 of previously recognized incentive compensation expense with respect to these non-employee awards during the six months endedJune 30, 2017.

RSUs: Prior to the completion of the IPO, our board of directors adopted, and our shareholders approved, the Invitation Homes Inc. 2017 Omnibus Incentive Plan (the “Omnibus Incentive Plan”) to provide a means through which to attract and retain key personnel and to provide a means whereby our directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in us, or be paid incentive compensation, including incentive compensation measured by reference to the value of our common stock, and aligning their interests with those of our shareholders. Under the Omnibus Incentive Plan, we may issue up to 16,000,000 shares, and as of June 30, 2017, we have awarded 4,467,409 shares under the Omnibus Incentive Plan pursuant to our annual Long Term Incentive Plan (“LTIP”) awards, Supplemental Bonus Plan, the IH6 Bonus Awards, and certain non-employee director awards.

• Annual LTIP Awards: On June 23, 2017, we granted 860,837 RSUs pursuant to LTIP awards (the “LTIP Awards”) each of which is divided into three tranches (“Tranche 1,” “Tranche 2,” and “Tranche 3”). Within each tranche, 25% of the LTIP Award contains time-vesting conditions, approximately 25% contains a market based vesting condition based on absolute total shareholder return, and approximately 50% contains performance based vesting conditions based on compounded annual growth in our same store net operating income and adjusted funds from operations.

The time-vesting awards vest in installments based on anniversary dates of March 1, 2017 based on continued employment through the applicable vesting date as follows: Tranche 1 on the first anniversary; Tranche 2 in two equal installments on each of the first and second anniversaries; and Tranche 3 in four equal installments on each of the first four anniversaries. The time-vesting LTIP awards are participating securities for EPS purposes.

The market and performance based awards may be earned based on the achievement of certain measures over an approximate one-, two-, or three-year performance period, which performance periods correspond, respectively, to the Tranche 1, Tranche 2, and Tranche 3 LTIP Awards. The number of RSUs earned will be determined based on performance achieved during the specified performance period for each measure at certain threshold, target, or maximum levels and corresponding payout ranges. In general, the market and performance based RSUs are earned on the date after the end of the performance period on which the performance results are certified by the compensation committee of the board of directors (the “Certification Date”). The Tranche 1 and Tranche 2 market and performance based RSUs will vest on the Certification Date subject to continued employment through such date. The Tranche 3 market and performance based RSUs will vest in two equal installments, on the related Certification Date and December 31, 2020, subject to continued employment through such vesting dates. The market and performance based LTIP RSUs are not participating securities for EPS purposes.

All of the LTIP Awards are subject to certain change in control and retirement eligibility provisions that may impact these vesting schedules.

• Retention Awards: On June 23, 2017, we issued 307,327 RSUs in the form of retention awards (the “Retention Awards”) each of which is a time-vesting award with service periods ranging from three to five years. The Retention Awards are participating securities for EPS purposes.

• Supplemental Bonus Plan: In October 2016, we established a supplemental bonus plan for certain key executives and employees (the “Supplemental Bonus Plan”). Pursuant to the Supplemental Bonus plan, the awards became payable and the payment amount became determinable upon the completion of the IPO. The $59,776 of awards were converted into 2,988,120 time-vesting RSUs that will generally vest in three equal annual installments, commencing on the completion of the INVH IPO and on the first and second anniversaries thereafter. The Supplemental Bonus Plan awards are participating securities for EPS purposes.

• IH6 Bonus Awards: In addition to the Class B Units granted by IH6 to certain individuals, these individuals were also granted bonus awards (the “IH6 Bonus Awards”) equal to $0.5 multiplied by the 9,650 IH6 Class B Units granted, entitling the recipients to receive bonus payments in connection with an IPO or exit event. Upon completion of the INVH IPO, the IH6 Bonus Awards became payable to the recipients and were converted into the right to receive shares of common stock. The $4,825 of awards were settled in the form of 241,250 RSUs that were fully vested upon issuance. The IH6 Bonus Awards are participating securities for EPS purposes.

• Director Awards: INVH issued $1,398 of awards, or 69,875 RSUs, to directors who are not our employees or employees of BREP VII. These awards will fully vest on the date scheduled for INVH’s 2018 annual shareholders meeting, subject to the director’s continued service on the board of directors through such date. The Director Awards are participating securities for EPS purposes.

The following tables summarize the status of non-vested RSUs and RSAs as of June 30, 2017 and changes during the period from January 31, 2017 through June 30, 2017:

	RSUs					RSAs					Total Share-Based Awards
	Number		Weighted Average Grant-Date Fair Value (Actual $)			Number		Weighted Average Grant-Date Fair Value (Actual $)			Number		Weighted Average Grant-Date Fair Value (Actual $)
Balance, January 1, 2017	—		$	—		—		$	—		—		$	—
Granted	4,467,409		20.53			62,529		15.50			4,529,938		20.46
Vested(1)	(1,446,351	)	(20.00		)	(54,729	)	(15.71		)	(1,501,080	)	(19.85		)
Forfeited	(83,909	)	(20.00		)	—		—			(83,909	)	(20.00		)
Balance, June 30, 2017	2,937,149		$	20.80		7,800		$	14.01		2,944,949		$	20.79

(1) All vested RSAs and RSUs are included in basic EPS for the period during which they are outstanding. However, the vested RSUs will not settle with the individual awardees until August 7, 2017, and therefore are not included in legally outstanding shares of common stock as of June 30, 2017.

During the period from January 31, 2017 through June 30, 2017, 54,729 RSAs and 1,446,351 RSUs with an estimated fair value of $29,845 fully vested. As of June 30, 2017, 641,719 RSUs included performance and market based criteria. Grant-date fair value of the RSAs and RSUs is generally based on the closing price of our common stock on the grant date. However, for the awards granted in connection with the IPO, the grant-date fair value is the opening offering price per common share, and the grant-date fair values for RSUs with market condition vesting criteria are based on Monte-Carlo option pricing models. The following table summarizes the significant inputs utilized in these models:

	June 30, 2017
Expected volatility(1)	25%
Risk-free rate	1.40%
Expected holding period (years)	0.52-2.52

(1) Expected volatility is estimated based on the leverage adjusted historical volatility of certain of our peer companies over a historical term commensurate with the remaining expected holding period.

Summary of Total Share-Based Compensation Expense

During the three months endedJune 30, 2017 and 2016, we recognized $8,216 and $4,106 respectively, of share-based compensation expense, comprised of the following:

	Share-Based Compensation Expense for the Three Months Ended June 30,
	2017				2016
	General and Administrative		Property Management Expense		General and Administrative		Property Management Expense
Class B Units	$	—	$	—	$	4,008	$	98
RSUs	6,876		1,336		—		—
RSAs	4		—		—		—
Total	$	6,880	$	1,336	$	4,008	$	98

During the six months endedJune 30, 2017 and 2016, we recognized $52,460 and $8,312 respectively, of share-based compensation expense, comprised of the following:

	Share-Based Compensation Expense for the Six Months Ended June 30,
	2017						2016
	General and Administrative			Property Management Expense			General and Administrative		Property Management Expense		Unrecognized Expense at June 30, 2017
Class B Units	$	11,998		$	3		$	8,059	$	253	$	—
RSUs	35,339			5,356			—		—		47,554
RSAs	(186		)	(50		)	—		—		19
Total	$	47,151		$	5,309		$	8,059	$	253	$	47,573

As of June 30, 2017, there was $47,573 of unrecognized share-based compensation expense related to non-vested RSUs and RSAs which is expected to be recognized over a weighted average period of 1.76 years.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 11—Fair Value Measurements

The carrying amounts of restricted cash, certain components of other assets, accounts payable and accrued expenses, resident security deposits, and other liabilities approximate fair value due to the short maturity of these amounts. Our interest rate swap agreements are the only financial instruments recorded at fair value on a recurring basis within our condensed consolidated financial statements. The fair values of our interest rate caps and swaps, which are classified as Level 2 in the fair value hierarchy, are estimated using market values of instruments with similar attributes and maturities. See Note 7 for the details of the balance sheet classification and the fair values for the interest rate caps and swaps.

The following table displays the carrying values and fair values of financial instruments as of June 30, 2017 and December 31, 2016:

		June 30, 2017				December 31, 2016
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets carried at historical cost on the consolidated balance sheets
Investments in debt securities	Level 2	$	230,498	$	234,413	$	209,337	$	209,390
Liabilities carried at historical cost on the consolidated balance sheets
Mortgage loans(1)	Level 2	$	4,177,516	$	4,195,249	$	5,263,994	$	5,265,180
Term loan facility(2)	Level 3	1,500,000		1,501,248		—		—
Credit facilities(3)	Level 3	—		—		2,321,585		2,329,551

(1) The carrying values of the mortgage loans are shown net of discount and exclude $18,850 and $9,256 of deferred financing costs as of June 30, 2017 and December 31, 2016, respectively.

(2) The carrying value of the term loan facility excludes $13,471 of deferred financing costs as of June 30, 2017.

(3) The carrying values of the credit facilities exclude $6,044 of deferred financing costs as of December 31, 2016.

The fair values of our investments in debt securities and of our mortgage loans, which are classified as Level 2 in the fair value hierarchy, are estimated based on market bid prices of comparable instruments at the end of the period. The fair values of our credit facilities and Term Loan Facility, which are classified as Level 3 in the fair value hierarchy, are estimated using a discounted cash flow methodology based on market interest rate data and other market factors available at the end of the period.

Our assets measured at fair value on a nonrecurring basis are those assets for which we have recorded impairments. The assets for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017			2016
Investments in single-family residential properties, net held for use (Level 3)
Pre-impairment amount	$	—	$	1,057		$	496		$	1,057
Total impairments	—		(229		)	(267		)	(229		)
Fair value	$	—	$	828		$	229		$	828

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Investments in single-family residential properties, net held for sale (Level 3)
Pre-impairment amount	$	885		$	3,959		$	8,127		$	3,959
Total impairments	(95		)	(290		)	(865		)	(290		)
Fair value	$	790		$	3,669		$	7,262		$	3,669

For additional information related to our single-family residential properties during the three and six months endedJune 30, 2017 and 2016, refer to Note 3.

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Earnings per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings per Share

Note 12—Earnings per Share

We compute EPS only for the period our common stock was outstanding during 2017, referred to as the Post-IPO period. We have defined the Post-IPO period as February 1, 2017, the date our shares began trading on the New York Stock Exchange, through June 30, 2017, or 91 and 150 days of activity, respectively, for the three months endedJune 30, 2017, and for the Post-IPO period. Basic EPS is computed by dividing the net loss available to common shareholders for the Post-IPO period by the weighted average number of shares outstanding during the Post-IPO period, adjusted for non-vested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of non-vested RSUs and RSAs except when doing so would be anti-dilutive.

All outstanding non-vested RSUs and RSAs that have nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating securities according to dividends or dividend equivalent and participation rights in undistributed earnings in periods when we have net income. Certain of our non-vested RSUs and RSAs are considered participating securities as identified in Note 10.

Basic and diluted EPS are calculated as follows:

(in thousands, except share and per share data)	Three Months Ended June 30, 2017		February 1, 2017 through June 30, 2017
Numerator:
Net income (loss) available to common shareholders — basic and diluted	$	5,420	$	(20,092	)
Denominator:
Weighted average common shares outstanding — basic	311,771,221		311,723,463
Weighted average common shares outstanding — diluted	312,271,578		311,723,463
Net income (loss) per common share — basic	$	0.02	$	(0.06	)
Net income (loss) per common share — diluted	$	0.02	$	(0.06	)

For the three months ended June 30, 2017, 35,770incremental shares attributed to non-vested RSUs and RSAs were excluded from the computation of diluted EPS because they would be anti-dilutive. For the period from February 1, 2017 through June 30, 2017, 445,595 incremental attributed to non-vested RSUs and RSAs were excluded from the computation of diluted EPS because we had a net loss for the period.

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Income Tax

6 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Income Tax

Note 13—Income Tax

We account for income taxes under the asset and liability method. For the TRSs, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We provide a valuation allowance, from time to time, for deferred tax assets for which we do not consider realization of such assets to be more likely than not.

As of June 30, 2017, there were no deferred tax assets and liabilities or unrecognized tax benefits recorded. We do not anticipate a significant change in unrecognized tax benefits within the next 12 months.

During the six months endedJune 30, 2017, we sold assets subject to Section 337(d) of the Code (see additional discussion in Note 2). These transactions resulted in $1,987 of current income tax expense which has been recorded in gain on sale of property, net of tax on the condensed consolidated statement of operations.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 14—Commitments and Contingencies

Insurance Policies

Pursuant to the terms of our credit facility agreements and mortgage loan agreements (see Note 6), laws and regulations of the jurisdictions in which our properties are located, and general business practices, we are required to procure insurance on our properties. For the six months endedJune 30, 2017 and 2016, no material uninsured losses have been incurred with respect to the properties.

Legal Matters

We are subject to various legal proceedings and claims that arise in the ordinary course of our business. We accrue a liability when we believe that it is both probable that a liability has been incurred and that we can reasonably estimate the amount of the loss. We do not believe that the final outcome of these proceedings or matters will have a material adverse effect on our condensed consolidated financial statements.

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Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

Note 15—Subsequent Events

In connection with the preparation of the accompanying condensed consolidated financial statements, we have evaluated events and transactions occurring after June 30, 2017, for potential recognition or disclosure.

Proposed Merger

On August 9, 2017, we entered into a definitive agreement with Starwood Waypoint Homes (“SFR”) to form a combined company in a stock-for-stock merger of equals transaction. Under the terms of the agreement, each SFR share will be converted into 1.614 shares of our common stock based on a fixed exchange ratio. Upon the closing of the transaction, our stockholders will own approximately 59% of the combined company’s stock, while SFR’s stockholders will own approximately 41% of the combined company’s stock. The transaction is expected to close by year end and is subject to approval by SFR’s stockholders and other customary closing conditions.

Dividend Declarations

On August 3, 2017, the board of directors declared an $0.08dividend per share to stockholders of record on August 15, 2017, which is payable on August 31, 2017.

Extensions of Existing Mortgage Loans

On July 12, 2017, we exercised our first one-year extension option on IH2 2015-3, extending the maturity from August 9, 2017 to August 9, 2018.

On August 3, 2017, we exercised our secondone-year extension option on IH1 2014-2, extending the maturity from September 9, 2017 to September 9, 2018.

Residential Property Dispositions

Between July 1, 2017 and August 7, 2017, we disposed of 47 homes with a net carrying amount of $7,105 as of June 30, 2017, for an aggregate net sales price of $8,716. A portion of the proceeds were used to make various prepayments on our mortgage loans totaling $848. At June 30, 2017, 42 of these properties were classified as held for sale and presented in other assets, net and five were classified as investments in single-family residential properties on our condensed consolidated balance sheet.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our audited combined and consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Subsequent to the date of the Pre-IPO Transactions, these condensed consolidated financial statements include the accounts of INVH and its wholly owned subsidiaries. Prior to the date of the Pre-IPO Transactions, these combined and consolidated financial statements include the combined accounts of the Operating Partnership and the Invitation Homes Partnerships and their wholly owned subsidiaries.

All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation of our interim financial statements have been included in these condensed consolidated financial statements. Operating results for the six months endedJune 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.

We consolidate entities when we own, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. We consolidate variable interest entities (“VIEs”) in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation, if we are the primary beneficiary of the VIE as determined by our power to direct the VIE’s activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity’s activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.

Adoption of New Accounting Standards and Recent Accounting Pronouncements

Adoption of New Accounting Standards

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Early adoption is permitted only for transactions that occurred before the issuance date of the guidance and has not been previously reported in issued financial statements. Effective January 1, 2017, we adopted ASU 2017-01, and the adoption of this standard had no material impact on our condensed consolidated financial statements for any period presented.

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Effective January 1, 2017, we adopted ASU 2016-09, and the adoption of this standard had no impact on our condensed consolidated financial statements for any period presented.

Recent Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies the definition of modification with the objective of evaluating whether modification accounting should be applied when there are changes to the terms or conditions of a share-based payment award. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that period changes in the total of cash, cash equivalents, and amounts generally described as restricted cash or cash equivalents are explained in the statement of cash flow. Thus, amounts generally described as restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning and ending balances shown in the statement of cash flows. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods with early adoption permitted. We are currently assessing the impact of the guidance on our condensed consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which clarifies the classification of certain cash receipts and cash payments including debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims, and beneficial interests in securitization transactions. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which will require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than one year. Lessor accounting will remain similar to lessor accounting under current GAAP, while aligning with the FASB’s new revenue recognition guidance. The new standard will be effective for us for annual reporting periods beginning after December 15, 2018, and for interim periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments, including the requirement to measure certain equity investments at fair value with changes in fair value recognized in net income. The new standard will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. We are currently evaluating the impact of the guidance on our condensed consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which provides guidance on revenue recognition and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, most industry-specific guidance and some cost guidance included in Subtopic 605-35, Revenue Recognition—Construction-Type and Production-Type Contracts. The standard’s core principle is that a company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These judgments may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. The guidance will be effective for us for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods. At that time, we may adopt the full retrospective approach or the modified retrospective approach. Early adoption is permitted only as of annual reporting periods, and interim periods therein, beginning after December 15, 2016. We are currently evaluating the method of adoption of this guidance and do not anticipate that the adoption of this guidance will have a material impact on our condensed consolidated financial statements as most of our revenue is from rental revenues, which this standard does not cover.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. These estimates are inherently subjective in nature and actual results could differ from those estimates.

Investments in Single-Family Residential Properties

Investments in Single-Family Residential Properties

Upon acquisition, we evaluate our acquired single-family residential properties for purposes of determining whether a transaction should be accounted for as an asset acquisition or business combination. Upon adoption of ASU 2017-01, our purchases of homes are treated as acquisitions and are recorded at their purchase price which is allocated between land, building and improvements, and in-place lease intangibles (when a tenant is in place at the acquisition date) based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, bidding service and title fees, payments made to cure tax, utility, homeowners’ association (“HOA”), and other mechanic’s and miscellaneous liens, as well as other closing costs. The fair values of acquired in-place lease intangibles, if any, are based on the costs to execute similar leases, including commissions and other related costs. The origination value of in-place lease intangibles also includes an estimate of lost rent revenue at in-place rental rates during the estimated time required to lease the property. The in-place lease intangibles are amortized over the life of the leases and are recorded in other assets, net on our condensed consolidated balance sheets.

Prior to our adoption of ASU 2017-01 effective January 1, 2017, acquisition costs for transactions accounted for as business combinations were expensed in the period in which they were incurred and were reflected in other expenses in the accompanying condensed consolidated statements of operations.

Earnings per Share

Earnings per Share

We use the two-class method to compute basic and diluted earnings (loss) per common share (“EPS”) because certain of our restricted stock units and restricted stock awards (see Share-Based Compensation Expense below) are participating securities as defined by GAAP. We compute basic EPS by dividing net income (loss) available to common shareholders for the period by the weighted-average number of common shares outstanding for the period, adjusted to exclude non-vested shares of RSUs and RSAs. Diluted EPS is similar to computing basic EPS, except that the denominator is increased to include the dilutive effects of non-vested RSUs and RSAs except when doing so would be anti-dilutive. Prior to the IPO, our business was conducted through the Invitation Homes Partnerships which did not have a common capital structure upon which to compute historical EPS. Accordingly, EPS has not been presented for historical periods prior to the IPO.

Derivatives

Derivatives

We enter into interest rate swap and interest rate cap agreements (collectively, “Hedging Derivatives”) for interest rate risk management purposes. We do not enter into Hedging Derivatives for trading or other speculative purposes, and all of our Hedging Derivatives are carried at fair value on our condensed consolidated balance sheets. Designated hedges are derivatives that meet the criteria for hedge accounting and that we have elected to designate as hedges. Non-designated hedges are derivatives that do not meet the criteria for hedge accounting or that we have not elected to designate as hedges.

Pursuant to the terms of certain of our mortgage loans, we are required to maintain interest rate caps. We have elected not to designate these interest cap agreements for hedge accounting (collectively, the “Non-Designated Hedges”). We enter into interest rate swap agreements to hedge the risk arising from changes in our interest payments on variable-rate debt due to changes in the one-month London Interbank Offered Rate (“LIBOR”). In connection with the Pre-IPO Transactions, as of January 31, 2017, we have elected to account for our interest rate swap agreements as effective cash flow hedges (collectively, the “Designated Hedges”). We assess the effectiveness of these interest rate swap cash flow hedging relationships on an ongoing basis. The effect of these interest rate cap agreements and interest rate swap agreements is to reduce the variability of interest payments due to changes in LIBOR.

The fair value of Hedging Derivatives that are in an asset position are included in other assets, net and those in a liability position are included in other liabilities on our condensed consolidated balance sheets. For Non-Designated Hedges, the related changes in fair value are reflected within interest expense in the condensed consolidated statements of operations. For Designated Hedges, the effective portion of the related changes in fair value is reported as a component of other comprehensive income (loss) on our condensed consolidated balance sheets and reclassified into earnings as interest expense in our condensed consolidated statements of operations when the hedged transactions affect earnings; the ineffective portion of the changes in fair value is reflected directly within interest expense in the condensed consolidated statements of operations.SeeNote 7for further discussion of derivative financial instruments.

Share-Based Compensation Expense

Share-Based Compensation Expense

Prior to the IPO, we recognized share-based compensation expense for incentive compensation units granted by the Invitation Homes Partnerships (the “Class B Units”). In connection with and subsequent to the IPO, we issued restricted stock units (“RSUs”) that settle in shares of common stock and restricted shares of common stock (“RSAs”) for which share-based compensation expense is recognized.

We recognized share-based compensation expense for the Class B Units based on the estimated fair value of the Class B Units and vesting conditions of the related incentive unit agreements. Since the Class B Units granted by IH1 were granted to employees of the Manager, a wholly owned subsidiary of IH1, the related share-based compensation expense was based on the grant-date fair value of the units and recognized in expense over the service period. Because units in IH2, IH3, IH4, IH5, and IH6 were granted to non-employees of those respective partnerships, fair value was remeasured for non-vested units at the end of each reporting period. The fair value of the Class B Units was determined based on a valuation model that took into account discounted cash flows and a market approach based on comparable companies and transactions.

We recognize share-based compensation expense for the RSUs and RSAs based on their grant-date fair value, net of expected forfeitures, over the service period from the grant date to vest date for each tranche or when any applicable performance conditions are met in accordance with the related RSU and RSA agreements. The grant-date fair value of RSUs and RSAs is generally based on the closing price of our common stock on the grant date except for market based RSU grant‑date fair values which are based on Monte-Carlo option pricing models.

Additional compensation expense is recognized if modifications to existing incentive compensation unit, RSU, or RSA agreements result in an increase in the post-modification fair value of the units that exceeds their pre-modification fair value. Share-based compensation expense is presented as a component of general and administrative expense and property management expense in our condensed consolidated statements of operations. See Note 10 for further discussion of share-based compensation expense.

Income Taxes

Income Taxes

As a result of the Pre-IPO Transactions more fully described in Note 1, the Invitation Homes Partnerships transferred all assets, liabilities, and operations to INVH through certain mergers and related transactions, including the IH2 Property Holdings Merger. IH2 Property Holdings Inc. had previously elected to qualify as a Real Estate Investment Trust “REIT” for United States federal income tax purposes commencing with its taxable year ended December 31, 2013. Effective upon consummation of the IH2 Property Holdings Merger, INVH became subject to such REIT election.

We intend to continue to operate as a REIT, and our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Internal Revenue Code of 1986, as amended (the “Code”), which are related to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If we qualify for taxation as a REIT, we will generally not be subject to United States federal corporate income tax on our taxable income that is currently distributed to shareholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. If we fail to qualify as a REIT in any taxable year, we will be subject to federal taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for subsequent taxable years.

Even if we qualify as a REIT, we may be subject to United States federal income and excise taxes in various situations, such as on our undistributed income. We also will be required to pay a 100% tax on any net income on non-arm’s length transactions between us and a TRS, defined below, and on any net income from sales of assets that were held for sale to customers in the ordinary course. In addition, we could also be subject to the alternative minimum tax on items of tax preference. State and local tax laws may not conform to the United States federal income tax treatment, and we may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business. Any taxes imposed on us reduce our operating cash flow and net income.

As part of the formation of INVH, each of the Invitation Homes Partnerships (other than IH2) transferred assets into INVH solely in exchange for shares of common stock. Certain of the assets contributed contained built-in gains. Prior to the Pre-IPO Transactions, the contributing partnerships had indirect C corporation partners to which a portion of the built-in gain would be allocated. As a result, if we dispose of any such assets during the five-year period following the date the REIT acquired such assets, we will be subject to the regulations under Section 337(d) of the Code. In general terms, such regulations subject the REIT to the maximum corporate level tax rate on the lesser of (i) such built-in gains and (ii) the gain recognized by the REIT upon a taxable disposition of the contributed assets. We may, however, choose not to sell such assets during such five-year period or to sell them in a non-taxable transaction. As such, the potential taxes associated with these built-in gains are not estimable.

Certain of our operations or a portion thereof, are conducted through taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a subsidiary C-corporation that has not elected REIT status and as such is subject to United States federal and state corporate income tax. We use TRS entities to facilitate our ability to perform non-real estate related activities and/or perform non-customary services for residents that cannot be offered directly by a REIT.

For our TRS entities, deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for United States federal income tax purposes and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. We reduce deferred tax assets by recording a valuation allowance when we determine, based on available evidence, that it is more likely than not that the assets will not be realized. We recognize the tax consequences associated with intercompany transfers between the REIT and TRS entities when the related assets affect our GAAP net income or loss, generally through depreciation, impairment losses, or sales to third-party entities.

Tax benefits associated with uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.

We file income tax returns in the United States federal jurisdiction as well as various state and local jurisdictions. Our filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires, with open tax years varying based upon the date of incorporation of the specific entity. The years open to examination range from 2013 to present.

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Investments in Single-Family Residential Properties (Tables)

6 Months Ended

Jun. 30, 2017

Real Estate [Abstract]

Schedule of Properties Carrying Amount

The following table sets forth the net carrying amount associated with our properties by component:

	June 30, 2017			December 31, 2016
Land	$	2,716,934		$	2,703,388
Single-family residential property	6,856,390			6,829,579
Capital improvements	228,419			229,890
Equipment	31,778			31,988
Total gross investments in the properties	9,833,521			9,794,845
Less: accumulated depreciation	(917,961		)	(792,330		)
Investments in single-family residential properties, net	$	8,915,560		$	9,002,515

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Restricted Cash (Tables)

6 Months Ended

Jun. 30, 2017

Cash and Cash Equivalents [Abstract]

Schedule of Restricted Cash

As of June 30, 2017 and December 31, 2016, the balances in our restricted cash accounts are as set forth in the table below. At December 31, 2016, no amounts were funded to the completion, renovation, leasing commission, debt service, termination fee, and nonconforming property reserve accounts as the conditions specified in the credit facility agreements that require such funding did not exist, and none are required at June 30, 2017 as the credit facilities had been repaid in full.

	June 30, 2017		December 31, 2016
Resident security deposits	$	88,871	$	86,239
Collections	12,281		42,767
Property taxes	32,449		52,256
Insurance premium and deductible	—		4,432
Standing and capital expenditure reserves	1,754		24,409
Special reserves	—		34
Eligibility reserves	398		9,274
Letters of credit	2,511		2,681
Total	$	138,264	$	222,092

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Other Assets (Tables)

6 Months Ended

Jun. 30, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

At June 30, 2017 and December 31, 2016, the balances in other assets, net are as follows:

	June 30, 2017		December 31, 2016
Investments in debt securities, net	$	230,498	$	209,337
Held for sale assets(1)	11,191		45,062
Prepaid expenses	25,418		21,883
Deferred leasing costs, net	7,327		7,710
Rent and other receivables, net	9,847		11,604
Deferred financing costs, net	8,689		—
Interest rate swap hedges (see Note 7)	2,955		—
Corporate fixed assets, net	6,001		6,247
Other	4,642		7,782
Total	$	306,568	$	309,625

(1) As of June 30, 2017 and December 31, 2016 (unaudited), 74 and 391 properties, respectively, were classified as held for sale.

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Debt (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

The following table sets forth a summary of the mortgage loan indebtedness as of June 30, 2017 and December 31, 2016:

				Outstanding Principal Balance(3)
	Maturity Date	Interest Rate(2)	Range of Spreads	June 30, 2017(4)			December 31, 2016
IH1 2013-1	N/A	N/A	115-365 bps	$	—		$	462,431
IH1 2014-1	N/A	N/A	100-375 bps	—			978,231
IH1 2014-2(1)(5)	September 9, 2018	3.13%	110-400 bps	704,523			710,664
IH1 2014-3(1)	December 9, 2017	3.56%	120-500 bps	147,634			766,753
IH2 2015-1, net(1)(6)	March 9, 2018	3.60%	145-430 bps	529,497			531,318
IH2 2015-2(1)	June 9, 2018	3.18%	135-370 bps	628,988			630,283
IH2 2015-3(1)(7)	August 9, 2018	3.41%	130-475 bps	1,170,395			1,184,314
IH1 2017-1, net(8)	June 9, 2027	4.17%	N/A	996,479			—
Total Securitizations				4,177,516			5,263,994
Less deferred financing costs, net				(18,850		)	(9,256		)
Total				$	4,158,666		$	5,254,738

(1) The initial maturity term of each of these mortgage loans istwoyears, individually subject to three, one-year extension options at the borrower’s discretion (provided that there is no continuing event of default under the loan agreement and the borrower obtains a replacement interest rate cap agreement in a form reasonably acceptable to the lender). Our IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 mortgage loans have exercised the first extension options, and IH1 2014-2 has exercised the second option.The maturity dates above are reflective of all extensions that have been exercised.

(2) For each of our first seven mortgage loans, interest rates are based on a weighted average spread to LIBOR; as ofJune 30, 2017 LIBOR was1.23%. Our IH1 2017-1 mortgage loan bears interest at a fixed rate of4.17%per annum equal to the market determined pass-through rate payable on the certificates, plus applicable servicing fees.

(3) Outstanding Principal Balance is net of discounts and does not include capitalized deferred financing costs, net.

(4) From July 1, 2017 toAugust 7, 2017, we made prepayments of$848on our mortgage loans related to the disposition of properties.

(5) On August 3, 2017, we exercised our secondone-year extension option on IH1 2014-2, extending the maturity from September 9, 2017 to September 9, 2018 (see Note 15).

(6) Net of unamortized discount of $0and$55as ofJune 30, 2017andDecember 31, 2016, respectively.

(7) On July 12, 2017, we exercised our first one-year extension option on IH2 2015-3, extending the maturity from August 9, 2017 to August 9, 2018 (see Note 15).

(8) Net of unamortized discount of$3,521as ofJune 30, 2017.

The following table lists the gross carrying values of the single-family residential properties, including held for sale properties, pledged as collateral for the loans as of June 30, 2017 and December 31, 2016:

	Number of Homes(1)	June 30, 2017		December 31, 2016
IH1 2013-1	—	$	—	$	533,005
IH1 2014-1	—	—		1,124,069
IH1 2014-2	3,619	784,024		785,459
IH1 2014-3	3,915	844,870		850,056
IH2 2015-1	2,999	593,546		594,155
IH2 2015-2	3,507	744,001		744,070
IH2 2015-3	6,985	1,368,310		1,382,683
IH1 2017-1	7,204	1,241,282		—
Total	28,229	$	5,576,033	$	6,013,497

(1) The loans are secured by first priority mortgages on portfolios of single-family residential properties owned by S1 Borrower, S2 Borrower, S3 Borrower, S4 Borrower, S5 Borrower, S6 Borrower, S7 Borrower, and S9 Borrower. The numbers of homes noted above are as of June 30, 2017. As of December 31, 2016, a total of 30,900 homes (unaudited) were secured by the above-mentioned mortgage loans.

Schedule of line of credit facility

The following table sets forth a summary of the outstanding principal amounts under such loans as of June 30, 2017:

	Maturity Date	Interest Rate(1)	June 30, 2017
Term loan facility	February 6, 2022	3.03%	$	1,500,000
Revolving facility	February 6, 2021	N/A	—
Total			1,500,000
Less deferred financing costs, net			(13,471		)
Total			$	1,486,529

(1) Interest rate for the Term Loan Facility is based on LIBOR plus an applicable margin of 1.80%; as of June 30, 2017, LIBOR was 1.23%.

All of the then-existing credit facilities were paid in full on February 6, 2017 in connection with the closing of our IPO. The following table sets forth a summary of the outstanding principal amounts of these credit facilities as ofJune 30, 2017 and December 31, 2016:

			Outstanding Principal Balance(1)
	Origination Date	Range of Spreads	June 30, 2017		December 31, 2016
IH1 2015	April 3, 2015	325 bps	$	—	$	85,492
IH2 2015	September 29, 2015	275 bps	—		43,859
IH3 2013	December 19, 2013	300-425 bps	—		932,583
IH4 2014	May 5, 2014	300-425 bps	—		529,866
IH5 2014	December 5, 2014	275-400 bps	—		564,348
IH6 2016	April 13, 2016	250-375 bps	—		165,437
Total			—		2,321,585
Less deferred financing costs, net			—		(6,044		)
Total			$	—	$	2,315,541

(1) Outstanding Principal Balance does not include capitalized deferred financing costs, net.

Schedule of maturities of long-term debt

Future maturities of these mortgage loans as of June 30, 2017 are set forth in the table below:

Year	Principal(1)
2017	$	147,634
2018	3,033,403
2019 and thereafter	1,000,000
Total payments	4,181,037
Less discounts	(3,521		)
Total mortgage loans, net	$	4,177,516

(1) Each of the mortgage loans, except IH1 2017-1, are subject to threeone-year extension options at the borrower's discretion (upon approval from the lender), of which the IH1 2014-3, IH2 2015-1, IH2 2015-2, and IH2 2015-3 mortgage loans have exercised the first extension options, and IH1 2014-2 has exercised the second option.

Future maturities of the New Credit Facility as of June 30, 2017 are set forth in the table below:

Year	Principal
2022	$	1,500,000

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of interest rate swap instruments

The table below summarizes our interest rate swap instruments as of June 30, 2017:

Agreement Date	Forward Effective Date	Maturity Date	Strike Rate	Index	Notional Amount
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	$	750,000
December 21, 2016	February 28, 2017	January 31, 2022	1.97%	One-month LIBOR	750,000
January 12, 2017	February 28, 2017	August 7, 2020	1.59%	One-month LIBOR	1,100,000
January 13, 2017	February 28, 2017	June 9, 2020	1.63%	One-month LIBOR	595,000
January 20, 2017	February 28, 2017	March 9, 2020	1.60%	One-month LIBOR	325,000

Summary of derivative financial instruments, fair value and location in condensed consolidated balance sheets

The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016:

	Asset Derivatives					Liability Derivatives
		Fair Value at:					Fair Value at:
	Balance Sheet Location	June 30, 2017		December 31, 2016		Balance Sheet Location	June 30, 2017		December 31, 2016
Derivatives designated as hedging instruments:
Interest rate swaps	Other assets	$	2,955	$	—	Other liabilities	$	9,872	$	—
Derivatives not designated as hedging instruments:
Interest rate swaps	Other assets	—		—		Other liabilities	—		8,683
Interest rate caps	Other assets	—		29		Other liabilities	—		—
Total		$	2,955	$	29		$	9,872	$	8,683

Summary of effect of derivative financial instruments on condensed consolidated statements of operations - derivative instruments not-designated as hedging instruments

The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months endedJune 30, 2017 and 2016:

	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)					Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)
	For the Three Months Ended June 30,						For the Three Months Ended June 30,						For the Three Months Ended June 30,
	2017			2016			2017			2016			2017		2016
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(14,759	)	$	—	Interest expense	$	(6,059	)	$	—	Interest expense	$	37	$	—

	Location of Gain (Loss) Recognized in Net Loss on Derivative	Amount of Gain (Loss) Recognized in Net Loss on Derivative
		For the Three Months Ended June 30,
		2017			2016
Derivatives not designated as hedging instruments:
Interest rate swaps	Interest expense	$	—		$	—
Interest rate caps	Interest expense	(50		)	—
Total		$	(50	)	$	—

The tables below present the effect of our derivative financial instruments on the condensed consolidated statements of operations for the six months endedJune 30, 2017 and 2016:

	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)					Location of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)
	For the Six Months Ended June 30,						For the Six Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016			2017		2016
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(4,198	)	$	—	Interest expense	$	(8,770	)	$	—	Interest expense	$	38	$	—

	Location of Gain (Loss) Recognized in Net Loss on Derivative	Amount of Gain (Loss) Recognized in Net Loss on Derivative
		For the Six Months Ended June 30,
		2017			2016
Derivatives not designated as hedging instruments:
Interest rate swaps	Interest expense	$	(3,674	)	$	—
Interest rate caps	Interest expense	(128		)	—
Total		$	(3,802	)	$	—

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based compensation, performance shares award outstanding activity

The following table summarizes the activity related to the Class B Units for the period from December 31, 2016 through January 31, 2017, the date at which they were all canceled or converted:

	Class B Units
	Employee					Non-employee					Total Class B Units
	Number of Units		Weighted Average Fair Value			Number of Units		Weighted Average Fair Value			Number of Units		Weighted Average Fair Value
Balance, December 31, 2016	9,915		$	4.2		39,638		$	2.5		49,553		$	2.9
Granted	85		14.0			9,753		—			9,838		0.1
Converted to RSAs	(245	)	(3.4		)	(485	)	(0.8		)	(730	)	(1.7		)
Canceled	(555	)	(8.2		)	(17,114	)	(0.4		)	(17,669	)	(0.6		)
Converted to Units of affiliated entities	(9,200	)	(4.0		)	(31,792	)	(2.9		)	(40,992	)	(3.2		)
Balance, January 31, 2017	—		$	—		—		$	—		—		$	—

Schedule of share-based compensation, restricted stock and restricted stock units

The following tables summarize the status of non-vested RSUs and RSAs as of June 30, 2017 and changes during the period from January 31, 2017 through June 30, 2017:

	RSUs					RSAs					Total Share-Based Awards
	Number		Weighted Average Grant-Date Fair Value (Actual $)			Number		Weighted Average Grant-Date Fair Value (Actual $)			Number		Weighted Average Grant-Date Fair Value (Actual $)
Balance, January 1, 2017	—		$	—		—		$	—		—		$	—
Granted	4,467,409		20.53			62,529		15.50			4,529,938		20.46
Vested(1)	(1,446,351	)	(20.00		)	(54,729	)	(15.71		)	(1,501,080	)	(19.85		)
Forfeited	(83,909	)	(20.00		)	—		—			(83,909	)	(20.00		)
Balance, June 30, 2017	2,937,149		$	20.80		7,800		$	14.01		2,944,949		$	20.79

(1) All vested RSAs and RSUs are included in basic EPS for the period during which they are outstanding. However, the vested RSUs will not settle with the individual awardees until August 7, 2017, and therefore are not included in legally outstanding shares of common stock as of June 30, 2017.

Schedule of share-based payment awards, stock options, valuation assumption

The following table summarizes the significant inputs utilized in these models:

	June 30, 2017
Expected volatility(1)	25%
Risk-free rate	1.40%
Expected holding period (years)	0.52-2.52

(1) Expected volatility is estimated based on the leverage adjusted historical volatility of certain of our peer companies over a historical term commensurate with the remaining expected holding period.

Schedule of compensation cost for share-based payment arrangements, allocation of share-based compensation costs by plan

During the three months endedJune 30, 2017 and 2016, we recognized $8,216 and $4,106 respectively, of share-based compensation expense, comprised of the following:

	Share-Based Compensation Expense for the Three Months Ended June 30,
	2017				2016
	General and Administrative		Property Management Expense		General and Administrative		Property Management Expense
Class B Units	$	—	$	—	$	4,008	$	98
RSUs	6,876		1,336		—		—
RSAs	4		—		—		—
Total	$	6,880	$	1,336	$	4,008	$	98

During the six months endedJune 30, 2017 and 2016, we recognized $52,460 and $8,312 respectively, of share-based compensation expense, comprised of the following:

	Share-Based Compensation Expense for the Six Months Ended June 30,
	2017						2016
	General and Administrative			Property Management Expense			General and Administrative		Property Management Expense		Unrecognized Expense at June 30, 2017
Class B Units	$	11,998		$	3		$	8,059	$	253	$	—
RSUs	35,339			5,356			—		—		47,554
RSAs	(186		)	(50		)	—		—		19
Total	$	47,151		$	5,309		$	8,059	$	253	$	47,573

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of carrying values and fair values of financial instruments

The following table displays the carrying values and fair values of financial instruments as of June 30, 2017 and December 31, 2016:

		June 30, 2017				December 31, 2016
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets carried at historical cost on the consolidated balance sheets
Investments in debt securities	Level 2	$	230,498	$	234,413	$	209,337	$	209,390
Liabilities carried at historical cost on the consolidated balance sheets
Mortgage loans(1)	Level 2	$	4,177,516	$	4,195,249	$	5,263,994	$	5,265,180
Term loan facility(2)	Level 3	1,500,000		1,501,248		—		—
Credit facilities(3)	Level 3	—		—		2,321,585		2,329,551

(1) The carrying values of the mortgage loans are shown net of discount and exclude $18,850 and $9,256 of deferred financing costs as of June 30, 2017 and December 31, 2016, respectively.

(2) The carrying value of the term loan facility excludes $13,471 of deferred financing costs as of June 30, 2017.

(3) The carrying values of the credit facilities exclude $6,044 of deferred financing costs as of December 31, 2016.

Schedule of impaired assets, measured at fair value on a nonrecurring basis

The assets for which we have recorded impairments, measured at fair value on a nonrecurring basis, are summarized below:

	Three Months Ended June 30,					Six Months Ended June 30,
	2017		2016			2017			2016
Investments in single-family residential properties, net held for use (Level 3)
Pre-impairment amount	$	—	$	1,057		$	496		$	1,057
Total impairments	—		(229		)	(267		)	(229		)
Fair value	$	—	$	828		$	229		$	828

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Investments in single-family residential properties, net held for sale (Level 3)
Pre-impairment amount	$	885		$	3,959		$	8,127		$	3,959
Total impairments	(95		)	(290		)	(865		)	(290		)
Fair value	$	790		$	3,669		$	7,262		$	3,669

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Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Basic and Diluted Earnings per Share Calculation

Basic and diluted EPS are calculated as follows:

(in thousands, except share and per share data)	Three Months Ended June 30, 2017		February 1, 2017 through June 30, 2017
Numerator:
Net income (loss) available to common shareholders — basic and diluted	$	5,420	$	(20,092	)
Denominator:
Weighted average common shares outstanding — basic	311,771,221		311,723,463
Weighted average common shares outstanding — diluted	312,271,578		311,723,463
Net income (loss) per common share — basic	$	0.02	$	(0.06	)
Net income (loss) per common share — diluted	$	0.02	$	(0.06	)

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Organization and Formation (Details) - $ / shares	Feb. 06, 2017	Jun. 30, 2017
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Sale of common stock (in shares)	310,376,634
Common stock, shares authorized (in shares)		9,000,000,000
Preferred shares, shares authorized (in shares)		900,000,000
Preferred shares, par value (in dollars per share)		$ 0.01
Common stock shares, par value (in dollars per share)		$ 0.01
IPO
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Sale of common stock (in shares)	88,550,000
Sale of common stock, price per share (in dollars per share)	$ 20.00
Pre-IPO Owner Issuances
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Sale of common stock (in shares)	221,826,634

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Investments in Single-Family Residential Properties (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Real Estate [Abstract]
Land	$ 2,716,934	$ 2,703,388
Single-family residential property	6,856,390	6,829,579
Capital improvements	228,419	229,890
Equipment	31,778	31,988
Investments in single-family residential properties, gross	9,833,521	9,794,845
Less: accumulated depreciation	(917,961)	(792,330)
Investments in single-family residential properties, net	$ 8,915,560	$ 9,002,515

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Investments in Single-Family Residential Properties - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Capitalized acquisition costs, net	$ 121,831		$ 121,831		$ 122,009
Accumulated capitalized interest costs	61,970		61,970		62,169
Capitalized property taxes, net	25,907		25,907		26,050
Capitalized insurance, net	4,729		4,729		4,764
Capitalized HOA Fees, net	2,879		2,879		$ 2,890
Depreciation	66,699	$ 64,775	133,352	$ 129,184
Depreciation and amortization	67,515	66,079	135,092	131,781
Impairment and other	95	519	1,132	519
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Depreciation and amortization	$ 816	$ 1,304	$ 1,740	$ 2,597

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Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 138,264	$ 222,092
Resident security deposits
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	88,871	86,239
Collections
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	12,281	42,767
Property taxes
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	32,449	52,256
Insurance premium and deductible
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	0	4,432
Standing and capital expenditure reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	1,754	24,409
Special reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	0	34
Eligibility reserves
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	398	9,274
Letters of credit
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 2,511	$ 2,681

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Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Investments in debt securities, net	$ 230,498	$ 209,337
Held for sale assets	11,191	45,062
Prepaid expenses	25,418	21,883
Deferred leasing costs, net	7,327	7,710
Rent and other receivables, net	9,847	11,604
Deferred financing costs, net	8,689	0
Interest rate swap hedges	2,955	0
Corporate fixed assets, net	6,001	6,247
Other	4,642	7,782
Total Other Assets	$ 306,568	$ 309,625

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Other Assets - Narrative (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2017 USD ($) property	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) property
Schedule of Investments [Line Items]
Number of real estate properties classified as held-for-sale | property	74		391
Investments in debt securities, net	$ 230,498,000		$ 209,337,000
Repayment proceeds from retained debt securities	30,916,000	$ 0
Other than temporary impairment recognized in other comprehensive income	0		0
Allowance for doubtful accounts receivable	1,359,000		1,183,000
Debt issuance costs, line of credit arrangements incurred	9,673,000
Residential Mortgage Backed Securities | Class G Certificates
Schedule of Investments [Line Items]
Investments in debt securities, net	193,045,000
Residential Mortgage Backed Securities | Class F Certificates
Schedule of Investments [Line Items]
Investments in debt securities, net			16,423,000
Marketable securities, unamortized discount	33,000		$ 131,000
Residential Mortgage Backed Securities | Class B Certificates
Schedule of Investments [Line Items]
Investments in debt securities, net	55,500,000
Marketable securities, unamortized discount	$ 3,521,000
Minimum
Schedule of Investments [Line Items]
Lessor leasing arrangements, operating leases, term of contract	12 months
Minimum | Residential Mortgage Backed Securities | Class F Certificates
Schedule of Investments [Line Items]
Marketable securities, expected maturity term	3 months
Minimum | Residential Mortgage Backed Securities | Class B Certificates
Schedule of Investments [Line Items]
Marketable securities, expected maturity term	10 years
Maximum | Residential Mortgage Backed Securities | Class G Certificates
Schedule of Investments [Line Items]
Marketable securities, expected maturity term	14 months

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Debt - Narrative (Details)	Jun. 30, 2017 security
Debt Disclosure [Abstract]
Number of securitizations	8

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Debt - Mortgage Loan Indebtedness (Details) $ in Thousands							1 Months Ended		6 Months Ended
	Aug. 03, 2017	Jul. 12, 2017	Jun. 09, 2017 USD ($)	May 09, 2017 USD ($)	Mar. 09, 2017 USD ($)	Feb. 06, 2017 USD ($)	Aug. 07, 2017 USD ($)	Apr. 30, 2017 USD ($)	Jun. 30, 2017 USD ($) extension	Dec. 31, 2016 USD ($)	Jan. 31, 2015 USD ($)	Nov. 30, 2014 USD ($)	Aug. 31, 2014 USD ($)
Debt Instrument [Line Items]
Less deferred financing costs, net									$ (8,689)	$ 0
Secured Debt
Debt Instrument [Line Items]
Long-term debt									4,177,516	5,263,994
Less deferred financing costs, net									(18,850)	(9,256)
Long-term debt									4,158,666	5,254,738
Debt instrument, unamortized discount									3,521
IH1 2013-1 | Secured Debt
Debt Instrument [Line Items]
Long-term debt									0	462,431
IH1 2014-1 | Secured Debt
Debt Instrument [Line Items]
Long-term debt									$ 0	978,231
Repayments of long-term debt					$ 260,000	$ 291,500
IH1 2014-2 | Secured Debt
Debt Instrument [Line Items]
Interest rate									3.13%
Long-term debt									$ 704,523	710,664
Debt instrument, unamortized discount													$ 3,970
IH1 2014-3 | Secured Debt
Debt Instrument [Line Items]
Interest rate									3.56%
Long-term debt									$ 147,634	766,753
Repayments of long-term debt			$ 100,000	$ 510,000
Debt instrument, unamortized discount												$ 7,235
IH2 2015-1 | Secured Debt
Debt Instrument [Line Items]
Interest rate									3.60%
Long-term debt									$ 529,497	531,318
Debt instrument, unamortized discount									$ 0	55	$ 622
IH2 2015-2 | Secured Debt
Debt Instrument [Line Items]
Interest rate									3.18%
Long-term debt									$ 628,988	630,283
IH2 2015-3 | Secured Debt
Debt Instrument [Line Items]
Interest rate									3.41%
Long-term debt									$ 1,170,395	1,184,314
IH1 2017-1 | Secured Debt
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage									4.17%
Long-term debt									$ 996,479	$ 0
Debt instrument, term								10 years
Debt instrument, unamortized discount								$ 3,580	$ 3,521
IH1 2014-2, IH2014-3, IH2015-1, IH2015-2, and IH2015-3 | Secured Debt
Debt Instrument [Line Items]
Debt instrument, term									2 years
Debt instrument, number of extensions | extension									3
Debt instrument, extended term									1 year
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, variable rate									1.23%
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2013-1 | Secured Debt
Debt Instrument [Line Items]
Basis spread									1.15%
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2014-1 | Secured Debt
Debt Instrument [Line Items]
Basis spread									1.00%
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2014-2 | Secured Debt
Debt Instrument [Line Items]
Basis spread									1.10%
London Interbank Offered Rate (LIBOR) | Minimum | IH1 2014-3 | Secured Debt
Debt Instrument [Line Items]
Basis spread									1.20%
London Interbank Offered Rate (LIBOR) | Minimum | IH2 2015-1 | Secured Debt
Debt Instrument [Line Items]
Basis spread									1.45%
London Interbank Offered Rate (LIBOR) | Minimum | IH2 2015-2 | Secured Debt
Debt Instrument [Line Items]
Basis spread									1.35%
London Interbank Offered Rate (LIBOR) | Minimum | IH2 2015-3 | Secured Debt
Debt Instrument [Line Items]
Basis spread									1.30%
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2013-1 | Secured Debt
Debt Instrument [Line Items]
Basis spread									3.65%
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2014-1 | Secured Debt
Debt Instrument [Line Items]
Basis spread									3.75%
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2014-2 | Secured Debt
Debt Instrument [Line Items]
Basis spread									4.00%
London Interbank Offered Rate (LIBOR) | Maximum | IH1 2014-3 | Secured Debt
Debt Instrument [Line Items]
Basis spread									5.00%
London Interbank Offered Rate (LIBOR) | Maximum | IH2 2015-1 | Secured Debt
Debt Instrument [Line Items]
Basis spread									4.30%
London Interbank Offered Rate (LIBOR) | Maximum | IH2 2015-2 | Secured Debt
Debt Instrument [Line Items]
Basis spread									3.70%
London Interbank Offered Rate (LIBOR) | Maximum | IH2 2015-3 | Secured Debt
Debt Instrument [Line Items]
Basis spread									4.75%
Subsequent Event
Debt Instrument [Line Items]
Repayments of long-term debt							$ 848
Subsequent Event | Secured Debt
Debt Instrument [Line Items]
Repayments of long-term debt							$ 848
Subsequent Event | IH1 2014-2 | Secured Debt
Debt Instrument [Line Items]
Debt instrument, extended term exercised	1 year
Subsequent Event | IH2 2015-3 | Secured Debt
Debt Instrument [Line Items]
Debt instrument, extended term exercised		1 year

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Debt - Securitization Transactions (Details)					1 Months Ended	6 Months Ended
	Jun. 09, 2017 USD ($)	May 09, 2017 USD ($)	Mar. 09, 2017 USD ($)	Feb. 06, 2017 USD ($)	Apr. 30, 2017 USD ($) property loan	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)	Jun. 30, 2015 USD ($) loan	Apr. 30, 2015 USD ($) loan	Jan. 31, 2015 USD ($) loan	Nov. 30, 2014 USD ($) loan	Aug. 31, 2014 USD ($) loan	May 30, 2014 USD ($) loan	Nov. 30, 2013 USD ($) loan
Debt Instrument [Line Items]
Repayments of secured debt						$ 2,083,012,000	$ 30,738,000
Secured Debt
Debt Instrument [Line Items]
Debt instrument, unamortized discount						3,521,000
Repayments of secured debt						2,083,012,000	$ 30,738,000
Secured Debt | IH1 2013-1
Debt Instrument [Line Items]
Debt instrument, number of loans | loan															6
Debt instrument, face amount															$ 479,137,000
Debt instrument, number of loans sold at par | loan															6
Secured Debt | IH1 2014-1
Debt Instrument [Line Items]
Debt instrument, number of loans | loan														6
Debt instrument, face amount														$ 993,738,000
Debt instrument, number of loans sold at par | loan														6
Repayments of long-term debt			$ 260,000,000	$ 291,500,000
Secured Debt | IH1 2014-2
Debt Instrument [Line Items]
Debt instrument, face amount													$ 719,935,000
Debt instrument, number of loans sold at par | loan													7
Debt instrument, number of loans bearing variable interest rate | loan													6
Debt instrument, number of loans bearing fixed interest rate | loan													1
Debt instrument, unamortized discount													$ 3,970,000
Secured Debt | IH1 2014-3
Debt Instrument [Line Items]
Debt instrument, face amount												$ 769,322,000
Debt instrument, number of loans sold at par | loan												7
Repayments of long-term debt	$ 100,000,000	$ 510,000,000
Debt instrument, number of loans bearing variable interest rate | loan												6
Debt instrument, number of loans bearing fixed interest rate | loan												1
Debt instrument, unamortized discount												$ 7,235,000
Secured Debt | IH2 2015-1
Debt Instrument [Line Items]
Debt instrument, number of loans | loan											7
Debt instrument, face amount											$ 540,854,000
Debt instrument, number of loans sold at par | loan											6
Debt instrument, unamortized discount						0		$ 55,000			$ 622,000
Secured Debt | IH2 2015-2
Debt Instrument [Line Items]
Debt instrument, number of loans | loan										7
Debt instrument, face amount										$ 636,686,000
Secured Debt | IH2 2015-3
Debt Instrument [Line Items]
Debt instrument, number of loans | loan									7
Debt instrument, face amount									$ 1,193,950,000
Secured Debt | IH1 2017-1
Debt Instrument [Line Items]
Debt instrument, number of loans | loan					2
Debt instrument, face amount					$ 1,000,000,000
Debt instrument, unamortized discount					$ 3,580,000	$ 3,521,000
Debt instrument, term					10 years
Number of real estate properties collateralized | property					7,204
Debt instrument, interest rate, stated percentage						4.17%
Secured Debt | Class G Certificates
Debt Instrument [Line Items]
Debt instrument, loan principal as a percentage of mortgage pool						5.00%
Debt instrument, interest rate, stated percentage						0.0005%
Secured Debt | Class A Certificates | IH1 2017-1
Debt Instrument [Line Items]
Debt instrument, loan principal as a percentage of mortgage pool						5.00%

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Debt - Prepayments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Debt Instrument [Line Items]
Repayments of secured debt	$ 2,083,012	$ 30,738
Secured Debt
Debt Instrument [Line Items]
Repayments of secured debt	$ 2,083,012	$ 30,738

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Debt - Collateral (Details) $ in Thousands	Jun. 30, 2017 USD ($) property	Dec. 31, 2016 USD ($) property
Debt Instrument [Line Items]
Real estate investment property, net	$ 8,915,560	$ 9,002,515
Residential Real Estate
Debt Instrument [Line Items]
Number of real estate properties | property	28,229	30,900
Real estate investment property, net	$ 5,576,033	$ 6,013,497
Residential Real Estate | IH1 2013-1
Debt Instrument [Line Items]
Number of real estate properties | property	0
Real estate investment property, net	$ 0	533,005
Residential Real Estate | IH1 2014-1
Debt Instrument [Line Items]
Number of real estate properties | property	0
Real estate investment property, net	$ 0	1,124,069
Residential Real Estate | IH1 2014-2
Debt Instrument [Line Items]
Number of real estate properties | property	3,619
Real estate investment property, net	$ 784,024	785,459
Residential Real Estate | IH1 2014-3
Debt Instrument [Line Items]
Number of real estate properties | property	3,915
Real estate investment property, net	$ 844,870	850,056
Residential Real Estate | IH2 2015-1
Debt Instrument [Line Items]
Number of real estate properties | property	2,999
Real estate investment property, net	$ 593,546	594,155
Residential Real Estate | IH2 2015-2
Debt Instrument [Line Items]
Number of real estate properties | property	3,507
Real estate investment property, net	$ 744,001	744,070
Residential Real Estate | IH2 2015-3
Debt Instrument [Line Items]
Number of real estate properties | property	6,985
Real estate investment property, net	$ 1,368,310	1,382,683
Residential Real Estate | IH1 2017-1
Debt Instrument [Line Items]
Number of real estate properties | property	7,204
Real estate investment property, net	$ 1,241,282	$ 0

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Debt - Mortgage Loans Maturity Schedule (Details) - Secured Debt - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Maturities of Long-term Debt [Abstract]
2017	$ 147,634
2018	3,033,403
2019 and thereafter	1,000,000
Total payments	4,181,037
Less discounts	(3,521)
Total mortgage loans, net	$ 4,177,516	$ 5,263,994

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Debt - New Credit Facility (Details)		6 Months Ended
	Feb. 06, 2017 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 2,500,000,000
Line of credit facility, additional borrowing capacity	1,500,000,000
Deferred financing costs, net		$ (8,689,000)	$ 0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 1,000,000,000
Line of Credit
Line of Credit Facility [Line Items]
Long-term debt		$ 1,486,529,000
Ratio of indebtedness to net capital		8.00
Long-term debt maturities, repayments of principal		$ 1,500,000,000
Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt instrument, number of maturity date extensions	1 year
Long-term line of credit		0
Line of Credit | Unsecured Debt
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 1,500,000,000
Long-term line of credit		$ 1,500,000,000
Line of credit facility, interest rate at period end		3.03%
Unsecured Debt
Line of Credit Facility [Line Items]
Deferred financing costs, net		$ (13,471,000)
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, variable rate		1.23%
London Interbank Offered Rate (LIBOR) | Line of Credit
Line of Credit Facility [Line Items]
Basis spread		1.00%
London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread		1.80%
Federal Funds Effective Swap Rate | Line of Credit
Line of Credit Facility [Line Items]
Basis spread		0.50%
Minimum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, unused capacity, commitment fee percentage		0.35%
Line of credit facility, facility fee percentage		0.125%
Minimum | London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread		1.75%
Minimum | London Interbank Offered Rate (LIBOR) | Line of Credit | Unsecured Debt
Line of Credit Facility [Line Items]
Basis spread		1.70%
Minimum | Base Rate | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread		0.75%
Minimum | Base Rate | Line of Credit | Unsecured Debt
Line of Credit Facility [Line Items]
Basis spread		0.70%
Maximum | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, unused capacity, commitment fee percentage		0.20%
Line of credit facility, facility fee percentage		0.30%
Maximum | London Interbank Offered Rate (LIBOR) | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread		2.30%
Maximum | London Interbank Offered Rate (LIBOR) | Line of Credit | Unsecured Debt
Line of Credit Facility [Line Items]
Basis spread		2.30%
Maximum | Base Rate | Line of Credit | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread		1.30%
Maximum | Base Rate | Line of Credit | Unsecured Debt
Line of Credit Facility [Line Items]
Basis spread		1.30%

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Debt - Credit Facilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Line of Credit Facility [Line Items]
Less deferred financing costs, net	$ (8,689)	$ 0
Loans Payable
Line of Credit Facility [Line Items]
Long-term line of credit	0	2,321,585
Less deferred financing costs, net	0	(6,044)
Long-term debt	0	2,315,541
IH1 2015 | Loans Payable
Line of Credit Facility [Line Items]
Long-term line of credit	0	85,492
IH2 2015 | Loans Payable
Line of Credit Facility [Line Items]
Long-term line of credit	0	43,859
IH3 2013 | Loans Payable
Line of Credit Facility [Line Items]
Long-term line of credit	0	932,583
IH4 2014 | Loans Payable
Line of Credit Facility [Line Items]
Long-term line of credit	0	529,866
IH5 2014 | Loans Payable
Line of Credit Facility [Line Items]
Long-term line of credit	0	564,348
IH6 2016 | Loans Payable
Line of Credit Facility [Line Items]
Long-term line of credit	$ 0	$ 165,437
London Interbank Offered Rate (LIBOR) | IH1 2015 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	3.25%
London Interbank Offered Rate (LIBOR) | IH2 2015 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	2.75%
London Interbank Offered Rate (LIBOR) | Minimum | IH3 2013 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	3.00%
London Interbank Offered Rate (LIBOR) | Minimum | IH4 2014 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	3.00%
London Interbank Offered Rate (LIBOR) | Minimum | IH5 2014 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	2.75%
London Interbank Offered Rate (LIBOR) | Minimum | IH6 2016 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	2.50%
London Interbank Offered Rate (LIBOR) | Maximum | IH3 2013 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	4.25%
London Interbank Offered Rate (LIBOR) | Maximum | IH4 2014 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	4.25%
London Interbank Offered Rate (LIBOR) | Maximum | IH5 2014 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	4.00%
London Interbank Offered Rate (LIBOR) | Maximum | IH6 2016 | Loans Payable
Line of Credit Facility [Line Items]
Basis spread	3.75%

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Derivative Instruments - Interest Rate Swap Instruments (Details)	6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 agreement
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)	$ 38,000
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months	$ 11,452,000
Number of interest rate derivatives held | agreement		0
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 1
Derivative [Line Items]
Strike Rate	1.97%
Notional Amount	$ 750,000,000
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 2
Derivative [Line Items]
Strike Rate	1.97%
Notional Amount	$ 750,000,000
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 3
Derivative [Line Items]
Strike Rate	1.59%
Notional Amount	$ 1,100,000,000
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 4
Derivative [Line Items]
Strike Rate	1.63%
Notional Amount	$ 595,000,000
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | Interest Rate Swap 5
Derivative [Line Items]
Strike Rate	1.60%
Notional Amount	$ 325,000,000
Interest Rate Swap
Derivative [Line Items]
Derivative, net liability position, fair value	$ 10,445,000

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Derivative Instruments - Non-Designated Hedges (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)
Derivative [Line Items]
Gain (loss) on fair value of derivative instruments	$ (50)	$ 0	$ (3,802)	$ 0
Not Designated as Hedging Instrument | Maximum
Derivative [Line Items]
Cap interest rate	3.09%		3.09%
Interest Rate Cap
Derivative [Line Items]
Gain (loss) on fair value of derivative instruments	$ (50)	0	$ (128)	0
Interest Rate Cap | Not Designated as Hedging Instrument
Derivative [Line Items]
Debt service coverage ratio	1.2		1.2
Interest Rate Cap | Not Designated as Hedging Instrument | Minimum
Derivative [Line Items]
Cap interest rate	2.52%		2.52%
Interest Rate Swap
Derivative [Line Items]
Gain (loss) on fair value of derivative instruments	$ 0	$ 0	$ (3,674)	$ 0

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Derivative Instruments - Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	$ 2,955	$ 29
Derivative liability, fair value, gross liability	9,872	8,683
Interest Rate Swap | Designated as Hedging Instrument | Other Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	2,955	0
Interest Rate Swap | Designated as Hedging Instrument | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	9,872	0
Interest Rate Swap | Not Designated as Hedging Instrument | Other Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	0	0
Interest Rate Swap | Not Designated as Hedging Instrument | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	0	8,683
Interest Rate Cap | Not Designated as Hedging Instrument | Other Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	0	29
Interest Rate Cap | Not Designated as Hedging Instrument | Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	$ 0	$ 0

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Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)			$ 38
Gain (loss) on fair value of derivative instruments	$ (50)	$ 0	(3,802)	$ 0
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) on fair value of derivative instruments	0	0	(3,674)	0
Interest Rate Cap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) on fair value of derivative instruments	(50)	0	(128)	0
Cash Flow Hedging | Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)	(14,759)	0	(4,198)	0
Amount of Gain (Loss) Reclassified from Accumulated OCI into Net Loss (Effective Portion)	(6,059)	0	(8,770)	0
Amount of Gain (Loss) Recognized in Net Loss on Derivative (Ineffective Portion and Amounts Excluded from Effectiveness Testing)	$ 37	$ 0	$ 38	$ 0

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Equity (Details) - USD ($)							1 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended		12 Months Ended
	Aug. 31, 2017	Aug. 03, 2017	May 31, 2017	Feb. 06, 2017	Jan. 31, 2017	Jan. 05, 2017	Jan. 31, 2017	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Class of Stock [Line Items]
Issuance of common stock (in shares)				310,376,634
Proceeds from initial offering									$ 1,692,058,000	$ 1,692,058,000	$ 0
Offering costs paid									$ 5,726,000	$ 2,757,000	0
Common stock, dividends, per share, declared (in dollars per share)								$ 0.06	$ 0.06
Common stock, shares outstanding (in shares)								310,376,634	310,376,634	310,376,634
Preferred shares, shares outstanding (in shares)								0	0	0
Common stock, shares issued (in shares)												1,000
Preferred stock, shares issued (in shares)												113
Preferred stock, dividend rate, percentage												12.00%
Contributions by investors					$ 1,153,000					$ 1,153,000	0
Dividends, preferred stock, cash paid											0	$ 0
Common stock, dividends per share (in dollars per share)			$ 0.06
Preferred stock, amount of preferred dividends in arrears												0
Payments of dividends										18,816,000	0
Proceeds from contributed capital										$ 0	$ 138,002,000
Profit interests, cancellations							$ 19,686,000
Profit interests, distributions							19,686,000
Class B Units
Class of Stock [Line Items]
Profit interests, notes receivable distributed							$ 11,023,000
Profit interests, notes receivable issued												20,228,000
Profit interests, notes receivable accrued interest												$ 1,527,000
Profit interests, cancellations						$ 7,723,000
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Shares granted (in shares)									3,290,126	4,467,409
IH2
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)												1,000
Preferred shares, shares outstanding (in shares)												113
IH1 | Class B Units
Class of Stock [Line Items]
Profit interests, distributions						$ 11,963,000
Minimum | Class B Units
Class of Stock [Line Items]
Profit interests, notes receivable applicable interest rate												1.57%
Maximum | Class B Units
Class of Stock [Line Items]
Profit interests, notes receivable applicable interest rate												1.97%
Subsequent Event
Class of Stock [Line Items]
Common stock, dividends, per share, declared (in dollars per share)		$ 0.08
Scenario, forecast
Class of Stock [Line Items]
Common stock, dividends per share (in dollars per share)	$ 0.08

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Related Party Transactions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($)
Related Party Transactions [Abstract]
Repayments of amounts due to related party	$ 1,959

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Share-Based Compensation (Details) $ in Thousands		1 Months Ended	6 Months Ended
	Jan. 31, 2017 employee shares	Jan. 31, 2017 shares	Jun. 30, 2017 USD ($) shares	Dec. 31, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, number of employees that elected not to convert shares | employee	1
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)	62,529
Share-based compensation arrangement, vested, number (in shares)			54,729
Share-based compensation arrangement, equity instruments other than options, nonvested, number (in shares)			7,800	0
Class B Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)		9,838
Share-based compensation arrangement, accelerated vesting, number of shares (in shares)		7,520
Share-based compensation arrangement, accelerated compensation cost | $			$ 11,601
Share-based compensation arrangement, vested and excluded from conversion or cancellation (in shares)	3,878
Share-based compensation arrangement, forfeited (in shares)	17,669	17,669
Share-based compensation arrangement, vested, number (in shares)	40,992	40,992
Share-based compensation arrangement, outstanding, number (in shares)	0	0		49,553
IH6 | Class B Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)		9,650
IH1, IH2, IH3 | Class B Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)		188
IH6 Bonus Awards | Class B Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)		9,650
Share-based compensation arrangement by share-based payment award, non-option equity instrument, conversion multiplier	0.5	0.5

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Share-Based Compensation - Summary of Class B Unit Activity (Details) - $ / shares		1 Months Ended
	Jan. 31, 2017	Jan. 31, 2017
Class B Units
Class B Units Activity
Balance, December 31, 2016 (in shares)		49,553
Granted (in shares)		9,838
Units converted (in shares)	(730)	(730)
Forfeited (in shares)	(17,669)	(17,669)
Balance, January 31, 2017 (in shares)	0	0
Class B Units Weighted Average Grant Date Fair Value
Balance, December 31, 2016 (in dollars per share)		$ 2.9
Granted (in dollars per share)		0.1
Units converted (in dollars per share)		(1.7)
Canceled (in dollars per share)		(0.6)
Balance, January 31, 2017 (in dollars per share)	$ 0.0	$ 0.0
Class B Units | Employee
Class B Units Activity
Balance, December 31, 2016 (in shares)		9,915
Granted (in shares)		85
Units converted (in shares)		(245)
Forfeited (in shares)		(555)
Balance, January 31, 2017 (in shares)	0	0
Class B Units Weighted Average Grant Date Fair Value
Balance, December 31, 2016 (in dollars per share)		$ 4.2
Granted (in dollars per share)		14.0
Units converted (in dollars per share)		(3.4)
Canceled (in dollars per share)		(8.2)
Balance, January 31, 2017 (in dollars per share)	$ 0.0	$ 0.0
Class B Units | Non-employee
Class B Units Activity
Balance, December 31, 2016 (in shares)		39,638
Granted (in shares)		9,753
Units converted (in shares)		(485)
Forfeited (in shares)		(17,114)
Balance, January 31, 2017 (in shares)	0	0
Class B Units Weighted Average Grant Date Fair Value
Balance, December 31, 2016 (in dollars per share)		$ 2.5
Granted (in dollars per share)		0.0
Units converted (in dollars per share)		(0.8)
Canceled (in dollars per share)		(0.4)
Balance, January 31, 2017 (in dollars per share)	$ 0.0	$ 0.0
Restricted Stock
Class B Units Activity
Granted (in shares)	62,529
Affiliated Entity | Class B Units
Class B Units Activity
Units converted (in shares)		(40,992)
Class B Units Weighted Average Grant Date Fair Value
Units converted (in dollars per share)		$ (3.2)
Affiliated Entity | Class B Units | Employee
Class B Units Activity
Units converted (in shares)		(9,200)
Class B Units Weighted Average Grant Date Fair Value
Units converted (in dollars per share)		$ (4.0)
Affiliated Entity | Class B Units | Non-employee
Class B Units Activity
Units converted (in shares)		(31,792)
Class B Units Weighted Average Grant Date Fair Value
Units converted (in dollars per share)		$ (2.9)

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Share-Based Compensation - Summary of RSAs and RSUs (Details) - USD ($)				1 Months Ended	5 Months Ended	6 Months Ended
	Jun. 23, 2017	Feb. 01, 2017	Jan. 31, 2017	Jan. 31, 2017	Jun. 30, 2017	Jun. 30, 2017
Fair Value Assumptions
Expected volatility						25.00%
Risk-free rate						1.40%
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)			62,529
Share-based compensation arrangement, vested, number (in shares)					54,729	54,729
Share-based compensation expense						$ (246,000)
Restricted Stock and Restricted Stock Units Outstanding
Balance, January 1, 2017 (in shares)				0		0
Granted (in shares)						62,529
Vested (in shares)					(54,729)	(54,729)
Forfeited (in shares)						0
Balance, June 30, 2017 (in shares)					7,800	7,800
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value
Balance, January 1, 2017 (in dollars per share)				$ 0.00		$ 0.00
Granted (in dollars per share)						15.50
Vested (in dollars per share)						(15.71)
Forfeited (in dollars per share)						(0.00)
Balance, June 30, 2017 (in dollars per share)					$ 14.01	$ 14.01
Class B Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)				9,838
Share-based compensation arrangement, vested, number (in shares)			40,992	40,992
Restricted Stock Units (RSUs)
Restricted Stock and Restricted Stock Units Outstanding
Balance, January 1, 2017 (in shares)				0		0
Granted (in shares)					3,290,126	4,467,409
Vested (in shares)					(1,446,351)	(1,446,351)
Forfeited (in shares)						(83,909)
Balance, June 30, 2017 (in shares)					2,937,149	2,937,149
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value
Balance, January 1, 2017 (in dollars per share)				$ 0.00		$ 0.00
Granted (in dollars per share)						20.53
Vested (in dollars per share)						(20.00)
Forfeited (in dollars per share)						(20.00)
Balance, June 30, 2017 (in dollars per share)					$ 20.80	$ 20.80
Restricted Stock Units (RSUs) - Performance-Based and Market-Based
Restricted Stock and Restricted Stock Units Outstanding
Balance, June 30, 2017 (in shares)					641,719	641,719
Restricted Stock and Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, equity instrument other than options, vested in period					$ 29,845,000
Restricted Stock and Restricted Stock Units Outstanding
Balance, January 1, 2017 (in shares)				0		0
Granted (in shares)						4,529,938
Vested (in shares)						(1,501,080)
Forfeited (in shares)						(83,909)
Balance, June 30, 2017 (in shares)					2,944,949	2,944,949
Restricted Stock and Restricted Stock Units Weighted Average Grant Date Fair Value
Balance, January 1, 2017 (in dollars per share)				$ 0.00		$ 0.00
Granted (in dollars per share)						20.46
Vested (in dollars per share)						(19.85)
Forfeited (in dollars per share)						(20.00)
Balance, June 30, 2017 (in dollars per share)					$ 20.79	$ 20.79
Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, number of shares authorized (in shares)		16,000,000
Restricted Stock and Restricted Stock Units Outstanding
Balance, June 30, 2017 (in shares)					4,467,409	4,467,409
LTIP Agreement | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, service-based component of award	25.00%
Share-based compensation arrangement, market-based component	25.00%
Share-based compensation arrangement, performance-based component of award	50.00%
Restricted Stock and Restricted Stock Units Outstanding
Granted (in shares)	860,837
Retention Award Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)	307,327
Supplemental Bonus Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)		2,988,120
Share-based compensation arrangement, aggregate fair value granted during period					$ 59,776,000
IH6 Bonus Awards | Class B Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)				9,650
IH6 Bonus Awards | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, vested, number (in shares)		241,250
Share-based compensation arrangement, aggregate fair value granted during period					4,825,000
Tranche one | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage		33.00%
Tranche one | LTIP Agreement | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	33.00%
Tranche one | LTIP Agreement | Restricted Stock Units (RSUs) - Performance-Based and Market-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting period	1 year
Tranche two | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage		33.00%
Tranche two | LTIP Agreement | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	33.00%
Tranche two | LTIP Agreement | Restricted Stock Units (RSUs) - Performance-Based and Market-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting period	2 years
Tranche three | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage		33.00%
Tranche three | LTIP Agreement | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	33.00%
Tranche three | LTIP Agreement | Restricted Stock Units (RSUs) - Performance-Based and Market-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting period	3 years
Tranche two, anniversary one | LTIP Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	50.00%
Tranche two, anniversary two | LTIP Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	50.00%
Tranche three, anniversary one | LTIP Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	25.00%
Tranche three, anniversary one | LTIP Agreement | Restricted Stock Units (RSUs) - Market-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	50.00%
Tranche three, anniversary one | LTIP Agreement | Restricted Stock Units (RSUs) - Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	50.00%
Tranche three, anniversary two | LTIP Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	25.00%
Tranche three, anniversary two | LTIP Agreement | Restricted Stock Units (RSUs) - Market-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	50.00%
Tranche three, anniversary two | LTIP Agreement | Restricted Stock Units (RSUs) - Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	50.00%
Tranche three, anniversary three | LTIP Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	25.00%
Tranche three, anniversary four | LTIP Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, award vesting rights, percentage	25.00%
Director | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement, non-option equity instrument, granted (in shares)						69,875
Share-based compensation arrangement, aggregate fair value granted during period					$ 1,398,000
Minimum
Fair Value Assumptions
Expected holding period (years)						6 months 7 days
Minimum | Retention Award Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation arrangement with individual, requisite service period	3 years
Maximum
Fair Value Assumptions
Expected holding period (years)						2 years 6 months 7 days
Maximum | Retention Award Agreement | Restricted Stock Units (RSUs) - Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation arrangement with individual, requisite service period	5 years

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Share-Based Compensation - Summary of Total Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	$ 8,216	$ 4,106	$ 52,460	$ 8,312
Employee service share-based compensation, compensation not yet recognized	47,573		47,573
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	6,880	4,008	47,151	8,059
Property Management Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	1,336	98	5,309	253
Class B Units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Employee service share-based compensation, compensation not yet recognized	0		0
Class B Units | General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	0	4,008	11,998	8,059
Class B Units | Property Management Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	0	98	3	253
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Employee service share-based compensation, compensation not yet recognized	47,554		47,554
Restricted Stock Units (RSUs) | General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	6,876	0	35,339	0
Restricted Stock Units (RSUs) | Property Management Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	1,336	0	5,356	0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Employee service share-based compensation, compensation not yet recognized	19		19
Restricted Stock | General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	4	0	(186)	0
Restricted Stock | Property Management Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation arrangement, allocated share-based compensation expense	0	$ 0	(50)	$ 0
Restricted Stock and Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Employee service share-based compensation, compensation not yet recognized	$ 47,573		$ 47,573
Share-based compensation arrangement, weighted average remaining contractual terms			1 year 9 months 2 days

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Fair Value Measurements - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Liabilities carried at historical cost on the consolidated balance sheets
Deferred financing costs, net	$ 8,689	$ 0
Carrying Value | Level 2
Assets carried at historical cost on the consolidated balance sheets
Investments in debt securities	230,498	209,337
Fair Value | Level 2
Assets carried at historical cost on the consolidated balance sheets
Investments in debt securities	234,413	209,390
Mortgage loans
Liabilities carried at historical cost on the consolidated balance sheets
Deferred financing costs, net	18,850	9,256
Mortgage loans | Carrying Value | Level 2
Liabilities carried at historical cost on the consolidated balance sheets
Liabilities carried at historical cost	4,177,516	5,263,994
Mortgage loans | Fair Value | Level 2
Liabilities carried at historical cost on the consolidated balance sheets
Liabilities carried at historical cost	4,195,249	5,265,180
Term loan facility
Liabilities carried at historical cost on the consolidated balance sheets
Deferred financing costs, net	13,471
Term loan facility | Carrying Value | Level 3
Liabilities carried at historical cost on the consolidated balance sheets
Liabilities carried at historical cost	1,500,000	0
Term loan facility | Fair Value | Level 3
Liabilities carried at historical cost on the consolidated balance sheets
Liabilities carried at historical cost	1,501,248	0
Credit facilities
Liabilities carried at historical cost on the consolidated balance sheets
Deferred financing costs, net	0	6,044
Credit facilities | Carrying Value | Level 3
Liabilities carried at historical cost on the consolidated balance sheets
Liabilities carried at historical cost	0	2,321,585
Credit facilities | Fair Value | Level 3
Liabilities carried at historical cost on the consolidated balance sheets
Liabilities carried at historical cost	$ 0	$ 2,329,551

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Fair Value Measurements - Impaired Assets, Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Investments in single-family residential properties, net held for use and held for sale impairment adjustments
Total impairments	$ (95)	$ (519)	$ (1,132)	$ (519)
Fair Value, Measurements, Nonrecurring | Level 3 | Rental Properties
Investments in single-family residential properties, net held for use and held for sale impairment adjustments
Pre-impairment amount	0	1,057	496	1,057
Total impairments	0	(229)	(267)	(229)
Fair value	0	828	229	828
Rental Properties | Fair Value, Measurements, Nonrecurring | Level 3
Investments in single-family residential properties, net held for use and held for sale impairment adjustments
Pre-impairment amount	885	3,959	8,127	3,959
Total impairments	(95)	(290)	(865)	(290)
Fair value	$ 790	$ 3,669	$ 7,262	$ 3,669

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Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	5 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Earnings per share, period used to compute earnings per share	91 days	150 days
Numerator:
Net income (loss) available to common shareholders, basic	$ 5,420	$ (20,092)
Net income (loss) available to common shareholders, diluted	$ 5,420	$ (20,092)
Denominator:
Weighted average common shares outstanding — basic (in shares)	311,771,221	311,723,463
Weighted average common shares outstanding — diluted (in shares)	312,271,578	311,723,463
Net income (loss) per common share — basic (in dollars per share)	$ 0.02	$ (0.06)
Net income (loss) per common share — diluted (in dollars per share)	$ 0.02	$ (0.06)
Restricted Stock and Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)	35,770	445,595

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Income Tax (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($)
Income Tax Disclosure [Abstract]
Income tax expense recognized in gain (loss) on sale of property	$ 1,987

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Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Material uninsured losses	$ 0	$ 0

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Subsequent Events (Details) $ / shares in Units, $ in Thousands					1 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended
	Aug. 31, 2017 $ / shares	Aug. 03, 2017 $ / shares	Jul. 12, 2017	May 31, 2017 $ / shares	Aug. 07, 2017 USD ($) property	Jun. 30, 2017 USD ($) property $ / shares	Jun. 30, 2017 USD ($) property $ / shares	Jun. 30, 2017 USD ($) property	Jun. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) property
Subsequent Event [Line Items]
Common stock, dividends, per share, declared (in dollars per share) | $ / shares						$ 0.06	$ 0.06
Common stock, dividends per share (in dollars per share) | $ / shares				$ 0.06
Real estate held-for-sale						$ 11,191	$ 11,191	$ 11,191		$ 45,062
Proceeds from sale of residential properties								$ 129,239	$ 83,940
Number of real estate properties classified as held-for-sale | property						74	74	74		391
Residential Property Dispositions, Not Discontinued Operations
Subsequent Event [Line Items]
Real estate held-for-sale						$ 7,105	$ 7,105	$ 7,105
Number of real estate properties classified as held-for-sale | property						42	42	42
Number of real estate properties held for investment | property						5	5	5
Subsequent Event
Subsequent Event [Line Items]
Common stock, dividends, per share, declared (in dollars per share) | $ / shares		$ 0.08
Repayments of long-term debt					$ 848
Subsequent Event | Residential Property Dispositions, Not Discontinued Operations
Subsequent Event [Line Items]
Number of real estate properties sold | property					47
Proceeds from sale of residential properties					$ 8,716
Secured Debt | Subsequent Event
Subsequent Event [Line Items]
Repayments of long-term debt					$ 848
IH2 2015-3 | Secured Debt | Subsequent Event
Subsequent Event [Line Items]
Debt instrument, extended term exercised			1 year
IH1 2014-2 | Secured Debt | Subsequent Event
Subsequent Event [Line Items]
Debt instrument, extended term exercised		1 year
Scenario, forecast
Subsequent Event [Line Items]
Common stock, dividends per share (in dollars per share) | $ / shares	$ 0.08