Company: INVH
Filing Date: 2025-02-25
Form Type: 8-K
Source: 0001193125-25-035235
Chunk: 3

Company: Invitation Homes Inc.
Filing Date: 2025-02-25
Form: 8-K
Item: Item 5.02
Chunk 3
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 may be earned based on two performance measures: (1) the compounded annual growth rate of the Company’s shareholder return relative to the RMS Index CAGR for the performance period; and (2) the compounded annual growth rate of the Company’s net operating income for an identified population of homes. The performance-vesting LTIP RSUs are subject to potential increase based on achievement of the cumulative growth rate of the Company’s shareholder return over the performance period (the “ TSR Modifier”). Finally, the maximum dollar value of performance-based LTIP RSUs that can be earned is subject to a cap equal to the product of 300% of the target number of performance-vesting RSUs granted multiplied by $55.00 (the “ Value Cap”).

Under the terms of the LTIP RSU Agreement, each executive is eligible to earn, in respect of each performance condition, a threshold, target, and maximum number of performance-vesting LTIP RSUs based on whether the performance criteria are achieved at threshold, target, or maximum levels. The total number of performance-vesting LTIP RSUs earned with respect to each performance measure is based on an achievement factor which, in each case, ranges from a 0% payout for below threshold performance, to 50% for threshold performance, to 100% for target performance, up to 200% for performance at maximum levels or above. For actual performance between the specified threshold, target, and maximum levels, the resulting achievement percentage will be adjusted on a linear basis.

Once actual achievement of the performance criteria is determined at the end of the performance period, the number of earned performance-vesting LTIP RSUs is subject to upward modification based on application of the TSR Modifier, which can result in an increase in the number of earned LTIP RSUs ranging from an additional 0% (for total shareholder return below a threshold level) to up to an additional 50% (for total shareholder return at or above a maximum level) of the number of earned performance-vesting LTIP RSUs. As a result of the TSR Modifier, but prior to application of the Value Cap, the maximum number of performance-vesting LTIP RSUs that can be earned is 300% of target. Following application of the TSR Modifier, the number of performance-vesting RSUs ultimately earned is subject to reduction in the event that the actual dollar value of the performance-vesting LTIP RSUs exceeds the Value Cap. If the Value Cap is exceeded, the number of performance