Group 1 - The core viewpoint of the article indicates that Carlyle Group has taken a long position in the popular brokerage firm Robinhood during the second quarter, as revealed by the 13F report [1] - Carlyle Group has increased its holdings in StandardAero, indicating confidence in the company's performance [1] - The firm has completely exited its positions in WeRide, Seacor Marine, Spruce Bio, and Instacart, suggesting a strategic shift in investment focus [1] Group 2 - Carlyle Group has reduced its stakes in Smart Share, Global, and Complete Solaria, reflecting a potential reevaluation of these investments [1] - The firm's significant holdings now include StandardAero, Soleno, Phathom Pharma, Pony AI, and Invitation Homes, highlighting a diversified investment strategy [1]

Core Viewpoint - Investing in real estate investment trusts (REITs) is an effective strategy for generating passive dividend income due to their ownership of income-generating real estate portfolios Group 1: Mid-America Apartment Communities - Mid-America Apartment Communities has a strong dividend history, declaring its 126th consecutive quarterly dividend, with an annual payout of $6.06 per share, yielding over 4% at recent share prices [4] - The demand for apartments in the Sun Belt region is strong, with limited new supply expected, which should maintain high occupancy levels and drive rent growth [5] - The company has nearly $1 billion in apartment development projects underway and recently completed four projects and acquired two communities for nearly $575 million [6][7] Group 2: Invitation Homes - Invitation Homes has consistently increased its dividend since its IPO in 2017, currently paying $0.29 per share quarterly, yielding close to 4% [8] - The REIT focuses on single-family rental properties in high-demand markets, achieving a rent growth of 4% in the second quarter [9] - The company invested $350 million to acquire over 1,000 homes in the second quarter and provided $33 million in funding for future development, supporting its dividend growth [10] Group 3: Realty Income - Realty Income has a notable dividend track record, increasing its monthly dividend 131 times since its public listing in 1994, with a current payment of $0.269 per share monthly, yielding nearly 6% [11] - The REIT benefits from stable rental income through long-term triple-net leases with major companies, which cover all operating costs [12] - Realty Income plans to invest about $4 billion this year to expand its portfolio, enabling continued increases in its high-yielding monthly dividend [13] Group 4: Investment Opportunity - Mid-America Apartment Communities, Invitation Homes, and Realty Income are identified as high-yielding REITs with steadily rising dividends, making them attractive options for passive income this month [14]

PART I — Financial Information [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents Invitation Homes Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025, including balance sheets, operations, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets to $18.66 billion as of June 30, 2025, from $18.70 billion at year-end 2024, with total liabilities increasing and total equity decreasing over the same period Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | **$18,662,005** | **$18,700,951** | | Investments in single-family residential properties, net | $17,361,929 | $17,212,126 | | Cash and cash equivalents | $65,112 | $174,491 | | **Total liabilities** | **$8,956,709** | **$8,908,442** | | Secured debt, net | $1,382,965 | $1,385,573 | | Unsecured notes, net | $3,803,985 | $3,800,688 | | Term loan facilities, net | $2,447,555 | $2,446,041 | | Revolving facility | $540,000 | $570,000 | | **Total equity** | **$9,705,296** | **$9,792,509** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenues increased to $681.4 million, and net income attributable to common stockholders significantly rose to $140.9 million ($0.23 per diluted share), with similar growth for the six-month period Statement of Operations Highlights (in thousands, except per share data) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Total revenues** | **$681,401** | **$653,451** | **$1,355,880** | **$1,299,490** | | Rental revenues and other property income | $659,107 | $637,475 | $1,312,178 | $1,269,572 | | **Total expenses** | **$579,600** | **$565,297** | **$1,155,389** | **$1,119,674** | | **Net income attributable to common stockholders** | **$140,887** | **$73,188** | **$306,632** | **$215,538** | | **Net income per common share — diluted** | **$0.23** | **$0.12** | **$0.50** | **$0.35** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities increased, while net cash used in investing activities significantly rose due to higher property acquisitions, and net cash used in financing activities was primarily for dividends and revolving facility repayments Cash Flow Summary for the Six Months Ended June 30 (in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$682,978** | **$635,382** | | **Net cash used in investing activities** | **($416,915)** | **($200,200)** | | Acquisition of single-family residential properties | ($510,836) | ($244,337) | | Proceeds from sale of single-family residential properties | $267,692 | $218,751 | | **Net cash used in financing activities** | **($402,032)** | **($369,488)** | | Payment of dividends and dividend equivalents | ($356,806) | ($344,938) | | **Change in cash, cash equivalents, and restricted cash** | **($135,969)** | **$65,694** | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information supporting the financial statements, covering the company's property portfolio, accounting policies, debt structure, and significant commitments - As of June 30, 2025, the company wholly owns **85,905 homes**, jointly owns **7,698 homes**, and provides third-party management for an additional **16,785 homes**[30](index=30&type=chunk) - The company has entered into binding purchase agreements to acquire **1,286 homes** over the next three years, with remaining commitments of approximately **$370 million** as of June 30, 2025[175](index=175&type=chunk) Debt Summary as of June 30, 2025 (in thousands) | Debt Type | Outstanding Principal Balance | Net Carrying Value | | :--- | :--- | :--- | | Secured Debt | $1,387,695 | $1,382,965 | | Unsecured Notes | $3,827,937 | $3,803,985 | | Term Loan Facilities | $2,475,000 | $2,447,555 | | Revolving Facility | $540,000 | $540,000 | - On June 12, 2025, the board declared a dividend of **$0.29 per share**, paid on July 18, 2025, totaling **$178.0 million**, accrued in liabilities as of June 30, 2025[139](index=139&type=chunk)[182](index=182&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, revenue growth, macroeconomic impacts, operational factors, liquidity, and non-GAAP measure reconciliations [Our Portfolio](index=45&type=section&id=Our%20Portfolio) As of June 30, 2025, the company's portfolio included 85,905 wholly-owned homes with 95.6% average occupancy and $2,434 average monthly rent, with the Western US and Florida markets being the largest revenue contributors Portfolio Summary as of Q2 2025 | Metric | Total Portfolio | Same Store Portfolio | | :--- | :--- | :--- | | Number of Homes | 85,905 | 77,721 | | Average Occupancy | 95.6% | 97.2% | | Average Monthly Rent | $2,434 | $2,445 | - The Western US and Florida regions combined represent **71.3%** of the company's rental revenues and other property income for the three months ended June 30, 2025[201](index=201&type=chunk)[205](index=205&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) In Q2 2025, total revenues grew 4.3% year-over-year to $681.4 million, driven by increased rental income and management fees, leading to a 92.5% rise in net income Q2 2025 vs Q2 2024 Performance (in thousands) | | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$681,401** | **$653,451** | **$27,950** | **4.3%** | | Rental revenues | $659,107 | $637,475 | $21,632 | 3.4% | | Management fee revenues | $22,294 | $15,976 | $6,318 | 39.5% | | **Net income** | **$141,367** | **$73,431** | **$67,936** | **92.5%** | H1 2025 vs H1 2024 Performance (in thousands) | | H1 2025 | H1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$1,355,880** | **$1,299,490** | **$56,390** | **4.3%** | | **Net income** | **$307,649** | **$216,217** | **$91,432** | **42.3%** | Total Portfolio Rental Rate Growth (Q2 2025 vs Q2 2024) | Lease Type | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Renewal Lease Growth | 4.6% | 5.6% | | New Lease Growth | 2.0% | 3.5% | [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained strong liquidity with $65.1 million in unrestricted cash and $1.21 billion available on its revolving facility, with no debt maturing until June 2027 and a long-term target net debt to Adjusted EBITDAre ratio of 5.5 to 6.0 times - Liquidity sources as of June 30, 2025 include **$65.1 million** in unrestricted cash and **$1,210.0 million** undrawn on the Revolving Facility[270](index=270&type=chunk) - The company has no debt reaching final maturity until **June 2027**[270](index=270&type=chunk) - The long-term debt strategy targets a net debt to trailing twelve months Adjusted EBITDAre ratio of approximately **5.5 to 6.0 times**[278](index=278&type=chunk) Contractual Obligations Summary as of June 30, 2025 (in thousands) | Obligation Type | Total | Remainder of 2025 | 2026-2027 | 2028-2029 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Debt & Leases** | **$9,466,944** | **$184,224** | **$1,427,886** | **$3,522,974** | **$4,331,860** | | **Purchase commitments** | **$404,433** | **$224,579** | **$179,854** | **$—** | **$—** | | **Total** | **$10,456,944** | **$395,197** | **$1,822,425** | **$3,603,791** | **$4,635,531** | [Non-GAAP Measures](index=61&type=section&id=Non-GAAP%20Measures) This section provides reconciliations of GAAP net income to non-GAAP measures, with Q2 2025 Core FFO at $296.7 million ($0.48/share) and AFFO at $253.4 million ($0.41/share), both showing modest growth Non-GAAP Performance Measures (in thousands, except per share data) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Adjusted EBITDAre** | $390,876 | $376,319 | | **NOI (Same Store)** | $389,680 | $380,140 | | **Core FFO** | $296,694 | $291,825 | | **Adjusted FFO (AFFO)** | $253,422 | $245,190 | | **Core FFO per share** | $0.48 | $0.47 | | **AFFO per share** | $0.41 | $0.40 | [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations, with 66.3% of variable-rate debt effectively fixed, and seasonality impacting operating costs - The primary market risks are identified as **interest rate risk** and **seasonality**[321](index=321&type=chunk) - As of June 30, 2025, the company had **$3.015 billion** in outstanding variable-rate debt, of which **66.3%** was effectively fixed through interest rate swaps[323](index=323&type=chunk) - A **100 basis point** increase or decrease in the SOFR interest rate would result in an estimated **$10.2 million** change in annual interest expense[323](index=323&type=chunk) - The business experiences seasonality, with higher resident move-outs and turnover costs during the summer months[328](index=328&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective**[329](index=329&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[330](index=330&type=chunk) PART II — Other Information [Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any material litigation, nor is any material litigation currently threatened, beyond routine matters in the ordinary course of business - The company is not subject to any material litigation outside of routine proceedings[332](index=332&type=chunk) [Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K[333](index=333&type=chunk) [Other Part II Items](index=68&type=section&id=Other%20Part%20II%20Items) This section confirms no unregistered sales of equity securities, no defaults upon senior securities, no mine safety disclosures required, and no other information to report for the quarter - Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), and Item 5 (Other Information) are all reported as "**None**"[334](index=334&type=chunk)[335](index=335&type=chunk)[337](index=337&type=chunk) - Item 4 (Mine Safety Disclosures) is reported as "**Not applicable**"[336](index=336&type=chunk) [Exhibits](index=69&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents, an amendment to a term loan agreement, and CEO/CFO certifications - Key exhibits filed include an amendment to the Term Loan Agreement dated **April 28, 2025**, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections **302** and **906**[340](index=340&type=chunk)

Financial Data and Key Metrics Changes - The company reported core FFO of $0.48 per share for the second quarter and $0.97 per share year to date, aligning well with the full year guidance range of $1.88 to $1.94 per share [27] - AFFO for the quarter was $0.41 per share, bringing the year to date total to $0.84 per share, also tracking well against the full year guidance of $1.58 to $1.64 per share [27] - The net debt to trailing twelve month adjusted EBITDA ratio stood at 5.3 times, slightly below the target range of 5.5 to 6 times, indicating disciplined leverage management [24][25] Business Line Data and Key Metrics Changes - Same store core revenue growth was 2.4% year over year, while core operating expenses rose by 2.2%, resulting in a positive NOI growth [19] - Blended rent growth for the second quarter was 4%, driven by 4.7% renewal rent growth and 2.2% growth in new leases [20] - Average resident tenure reached 40 months, with a renewal rate approaching 80%, reflecting strong resident satisfaction and lower turnover costs [10][19] Market Data and Key Metrics Changes - The company acquired just under 1,000 wholly owned homes in the second quarter, primarily newly built homes in high-demand markets [12] - Same store average occupancy for July was reported at 96.6%, with renewal lease rate growth at 5% and new lease rate growth at 1.3% [21] - The U.S. housing market requires approximately 1.5 million new homes annually, including 600,000 rental units, to restore balance [11] Company Strategy and Development Direction - The company aims to consistently deliver high-quality housing in desirable neighborhoods, supported by a resident-first service platform [14] - A new developer lending program has been launched to participate earlier in the value chain, targeting the acquisition of communities upon stabilization [13] - The company is focused on maintaining strong partnerships with builders to enhance acquisition strategies and operational efficiencies [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding acquisition guidance of $500 million to $700 million for the year, supported by a robust pipeline [13] - The macro environment is expected to provide long-lasting demand tailwinds due to demographic trends, with a significant number of individuals entering the rental market [11][12] - Management acknowledged challenges in the new lease market but remains optimistic about renewal rates and overall portfolio performance [20][36] Other Important Information - The company has a strong balance sheet with approximately $1.3 billion in unrestricted cash and undrawn capacity on its revolving credit facility [24] - Over 83% of the company's debt is unsecured, and nearly 88% is fixed rate or swapped to fixed rate, enhancing financial stability [25] - The company is actively engaging in capital recycling, selling older homes to reinvest in newer properties [46][86] Q&A Session Summary Question: Occupancy guidance for the second half of the year - Management indicated that the occupancy guidance reflects expected seasonal turnover, with July occupancy at 96.6% and a typical decline anticipated in Q3 [30][31] Question: New lease pricing and market conditions - Management expects pressure on new lease pricing due to increased supply but anticipates improvements as supply begins to decrease in the second half of the year [34][35] Question: Transaction market and portfolio opportunities - The company continues to see a consistent market for portfolio acquisitions and is cautious in evaluating opportunities, focusing on attractive cap rates [38][39] Question: Southern California market fundamentals - Management reported strong performance in Southern California, with high occupancy and blended rates, despite some challenges in new lease pricing due to regulatory constraints [77] Question: Property tax expectations - Management anticipates that property tax expense growth will eventually align more closely with historical rates, potentially returning to 4% to 5% annual growth in the long term [101][103]

Financial Data and Key Metrics Changes - The company reported core FFO of $0.48 per share for Q2 2025, with a year-to-date total of $0.97 per share, aligning with the full-year guidance range of $1.88 to $1.94 per share [24] - AFFO for the quarter was $0.41 per share, bringing the year-to-date total to $0.84 per share, tracking well against the full-year guidance range of $1.58 to $1.64 per share [24][25] - The net debt to trailing twelve-month adjusted EBITDA ratio stood at 5.3 times, slightly below the target range of 5.5 to 6 times, indicating a disciplined approach to leverage [22] Business Line Data and Key Metrics Changes - Same store core revenue growth for Q2 was 2.4% year-over-year, while core operating expenses rose by 2.2%, resulting in a percent NOI growth [16] - Blended rent growth for Q2 was 4%, driven by 4.7% renewal rent growth and 2.2% growth in new leases, highlighting the importance of renewals as over three-quarters of the business comes from this segment [17][36] - Average resident tenure increased to 40 months, with a renewal rate approaching 80%, reflecting high resident satisfaction and lower turnover costs [8][16] Market Data and Key Metrics Changes - The company acquired just under 1,000 wholly owned homes in Q2, primarily newly built, which supports the ongoing demand for rental units in the U.S. housing market [10] - The average new resident age is in the late 30s, with an estimated 13,000 people turning 35 every day for the next decade, indicating a long-lasting demand tailwind for the business [10] - Same store average occupancy for July was reported at 96.6%, with renewal lease rate growth at 5% and new lease rate growth at 1.3% [19] Company Strategy and Development Direction - The company aims to consistently deliver high-quality housing in desirable neighborhoods, supported by a resident-first service platform [12] - The launch of a developer lending program is intended to allow the company to participate earlier in the value chain, with the goal of purchasing communities upon stabilization [11] - The company is focused on maintaining strong partnerships with builders to enhance acquisition strategies and capitalize on market opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding the acquisition guidance of $500 million to $700 million for the year, supported by a robust pipeline [11] - The macro environment continues to reinforce the value of the company's offerings, with a significant need for new homes in the U.S. [9] - Management acknowledged the challenges posed by seasonal turnover and market supply, but remains optimistic about the long-term demand for rental housing [31][36] Other Important Information - The company has a strong balance sheet with approximately $1.3 billion in unrestricted cash and undrawn capacity on its revolving credit facility, providing flexibility for growth initiatives [22] - Over 83% of the company's debt is unsecured, and nearly 88% is fixed rate or swapped to fixed rate, enhancing financial stability [22] Q&A Session Summary Question: Occupancy guidance for the second half of the year - Management indicated that the occupancy guidance reflects expected seasonal turnover, with July occupancy at 96.6% and a typical decline anticipated in Q3 [30] Question: New lease pricing and market conditions - Management acknowledged that new lease pricing has been under pressure due to increased supply but expects improvements as the market absorbs existing inventory [34] Question: Transaction market and portfolio opportunities - The company continues to evaluate portfolio opportunities and engage with homebuilders for attractive acquisitions, maintaining a cautious approach [39] Question: BTR supply and scattered site inventory - Management noted that while scattered site supply is putting pressure on rents, the overall BTR market is showing signs of improvement [50] Question: Property tax expectations - Management anticipates that property tax expense growth will return to historical levels over the long term, despite current pressures [102]

Core Insights - Invitation Homes Inc. (INVH) reported second-quarter 2025 core funds from operations (FFO) per share of 48 cents, exceeding the Zacks Consensus Estimate of 47 cents and up from 47 cents in the prior-year quarter [1][8] - Total revenues reached $681.4 million, surpassing the Zacks Consensus Estimate of $676.9 million and reflecting a 4.3% year-over-year improvement [2] - The company experienced a 2.5% increase in same-store net operating income (NOI) and a 4.0% growth in same-store blended rent, although occupancy decreased to 97.2%, down 40 basis points year over year [3][8] Financial Performance - Same-store core revenues grew by 2.4%, while same-store core operating expenses increased by 2.2% year over year, contributing to the overall NOI improvement [3] - The company acquired 939 wholly owned homes for approximately $316 million and 101 homes in joint ventures for around $34 million during the second quarter [4] - Invitation Homes launched a developer lending program, providing a $32.7 million loan to a homebuilder for a community development in Houston [5] Balance Sheet and Credit Ratings - As of June 30, 2025, Invitation Homes had total liquidity of $1.28 billion, with secured and unsecured debt totaling $8.25 billion and a Net Debt/TTM adjusted EBITDAre ratio of 5.3X [6] - S&P Global Ratings reaffirmed the issuer and issue-level credit ratings for Invitation Homes at 'BBB' and upgraded its outlook to 'Positive' from 'Stable' in April [6] 2025 Guidance - The company maintained its initial 2025 outlook, expecting core FFO per share between $1.88 and $1.94, with a midpoint of $1.91, aligning with the Zacks Consensus Estimate of $1.93 [7][9]

Core Viewpoint - Invitation Home (INVH) reported quarterly funds from operations (FFO) of $0.48 per share, matching the Zacks Consensus Estimate and showing a year-over-year increase from $0.47 per share [1] Financial Performance - The company achieved revenues of $681.4 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.67% and up from $653.45 million in the same quarter last year [2] - Over the last four quarters, Invitation Home has surpassed consensus FFO estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Since the beginning of the year, Invitation Home shares have increased by approximately 0.1%, while the S&P 500 has gained 8.3% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][6] Estimate Revisions and Industry Context - The current consensus FFO estimate for the upcoming quarter is $0.48, with projected revenues of $682.76 million, and for the current fiscal year, the estimate is $1.93 on revenues of $2.72 billion [7] - The Zacks Industry Rank places the REIT and Equity Trust - Residential sector in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

[Earnings Press Release](index=3&type=section&id=Earnings%20Press%20Release) [Q2 2025 Highlights & CEO Comments](index=3&type=section&id=Q2%202025%20Highlights%20%26%20CEO%20Comments) Invitation Homes reported strong Q2 2025 results, marked by significant net income growth, robust resident demand, and strategic capital market activities Q2 2025 Key Performance Indicators (YoY) | Metric | Q2 2025 Value | YoY Change | | :--- | :--- | :--- | | Net Income per Diluted Share | $0.23 | +92.7% | | Total Revenues | $681 million | +4.3% | | Core FFO per Share | $0.48 | +1.7% | | AFFO per Share | $0.41 | +3.4% | | Same Store NOI Growth | 2.5% | N/A | | Same Store Average Occupancy | 97.2% | -40 bps | - The CEO highlighted strong execution, noting a **42.4% YTD increase in net income per share** and a **3.7% rise in YTD AFFO per share**, driven by high occupancy and disciplined cost management[7](index=7&type=chunk)[8](index=8&type=chunk) - Strategic capital activities included an **S&P credit rating outlook upgrade to 'Positive'**, an amendment to a **$725 million term loan** resulting in a **40 basis point interest rate reduction**, and the launch of a **$33 million developer lending program** in Houston[10](index=10&type=chunk) [Financial Results](index=4&type=section&id=Financial%20Results) The company's Q2 2025 financial results demonstrated significant year-over-year growth in net income and per-share metrics, primarily driven by Net Operating Income growth Per Share Financial Results (Diluted) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $0.23 | $0.12 | $0.50 | $0.35 | | FFO | $0.45 | $0.34 | $0.90 | $0.77 | | Core FFO | $0.48 | $0.47 | $0.97 | $0.94 | | AFFO | $0.41 | $0.40 | $0.84 | $0.81 | - Q2 2025 total revenues grew to **$681 million** from **$653 million** in Q2 2024, while property operating and maintenance expenses rose to **$244 million** from **$234 million**[12](index=12&type=chunk) - The year-over-year increase in Core FFO per share (**+1.7% for Q2**, **+2.6% for YTD**) and AFFO per share (**+3.4% for Q2**, **+3.7% for YTD**) was primarily attributed to NOI growth[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Results](index=4&type=section&id=Operating%20Results) The Same Store portfolio demonstrated strong Q2 2025 operating results with a **2.5% year-over-year NOI increase**, driven by revenue growth and controlled expenses Q2 2025 Same Store Operating Results Snapshot (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | NOI Growth | 2.5% | N/A | N/A | | Core Revenues Growth | 2.4% | N/A | N/A | | Core Operating Expenses Growth | 2.2% | N/A | N/A | | Average Occupancy | 97.2% | 97.6% | -40 bps | | Blended Rental Rate Growth | 4.0% | 5.0% | -100 bps | | Bad Debt % of Gross Rental Revenue | 0.6% | 0.7% | -10 bps | - Q2 Same Store Core Revenues growth of **2.4%** was driven by a **2.6% increase in Average Monthly Rent** and a **6.8% increase in other income**, partially offset by a **40 basis point decline in Average Occupancy**[19](index=19&type=chunk) - Q2 Same Store Core Operating Expenses increased **2.2% YoY**, due to a **3.9% rise in controllable expenses** and a **1.3% rise in fixed expenses**[21](index=21&type=chunk) [Investment and Property Management Activity](index=5&type=section&id=Investment%20and%20Property%20Management%20Activity) In Q2 2025, the company actively managed its portfolio with significant acquisitions and dispositions, launched a new developer lending program, and ended the quarter with **110,388 homes** owned or managed - Q2 2025 acquisitions totaled **1,040 homes** for **~$350M**, while dispositions included **358 homes** for **~$141M**, across both wholly owned and joint venture portfolios[23](index=23&type=chunk) - A new developer lending program was launched with a **$33 million loan commitment** for a **156-home community** in Houston, which includes an option for the company to acquire the community upon stabilization[25](index=25&type=chunk) Summary of Homes Owned and/or Managed as of 6/30/2025 | Category | Start of Q2 | Acquired/Added | Disposed/Subtracted | End of Q2 | | :--- | :--- | :--- | :--- | :--- | | Wholly owned homes | 85,261 | 939 | (295) | 85,905 | | Joint venture owned homes | 7,660 | 101 | (63) | 7,698 | | Managed-only homes | 17,336 | 0 | (551) | 16,785 | | **Total** | **110,257** | **1,040** | **(909)** | **110,388** | [Balance Sheet and Capital Markets Activity](index=6&type=section&id=Balance%20Sheet%20and%20Capital%20Markets%20Activity) As of June 30, 2025, the company maintained a strong balance sheet with substantial liquidity, a predominantly unsecured and fixed-rate debt structure, and favorable capital market activities - The company has **$1,275 million in available liquidity** and a **Net debt / TTM adjusted EBITDAre of 5.3x**[28](index=28&type=chunk) - Total indebtedness was **$8.253 billion**, with **83.1% being unsecured** and **87.7% being fixed-rate or swapped to fixed-rate**. Approximately **90% of wholly owned homes are unencumbered**[28](index=28&type=chunk) - S&P Global Ratings upgraded the company's outlook to **'Positive'** from 'Stable' and reaffirmed its **'BBB' credit rating**. A **$725 million term loan** was amended, extending its maturity to 2030 and reducing its interest rate by **40 basis points**[29](index=29&type=chunk) [FY 2025 Guidance](index=6&type=section&id=FY%202025%20Guidance) Invitation Homes reaffirmed its full-year 2025 guidance, projecting Core FFO per share between **$1.88 and $1.94** and Same Store NOI growth between **1.00% and 3.00%** - The full year 2025 guidance remains unchanged from the initial guidance provided in February 2025[31](index=31&type=chunk) FY 2025 Guidance | Metric | FY 2025 Guidance Range | FY 2025 Guidance Midpoint | | :--- | :--- | :--- | | Core FFO per share — diluted | $1.88 to $1.94 | $1.91 | | AFFO per share — diluted | $1.58 to $1.64 | $1.61 | | Same Store NOI growth | 1.00% to 3.00% | 2.0% | | Wholly owned acquisitions | $500M to $700M | $600M | | Wholly owned dispositions | $400M to $600M | $500M | - Guidance assumptions include a **5.0% to 6.0% increase in property taxes** and a **2.0% to 3.0% reduction in insurance expenses** for FY 2025[33](index=33&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, the consolidated balance sheet shows total assets of **$18.66 billion**, a slight decrease from year-end 2024, with total equity at **$9.71 billion** Key Balance Sheet Items ($ in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $18,662,005 | $18,700,951 | | Total Liabilities | $8,956,709 | $8,908,442 | | Total Equity | $9,705,296 | $9,792,509 | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 consolidated statements of operations show total revenues of **$681.4 million** and a substantial increase in net income to **$140.9 million**, or **$0.23 per diluted share** Q2 Statement of Operations Highlights (YoY, $ in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $681,401 | $653,451 | | Total Expenses | $579,600 | $565,297 | | Net Income | $141,367 | $73,431 | | Net Income per Share (Diluted) | $0.23 | $0.12 | - Year-to-date 2025 net income available to common stockholders was **$306.2 million**, a significant increase from **$215.1 million** in the same period of 2024[46](index=46&type=chunk) [Schedule 1: Reconciliation of FFO, Core FFO, and AFFO](index=10&type=section&id=Schedule%201%3A%20Reconciliation%20of%20FFO%2C%20Core%20FFO%2C%20and%20AFFO) This schedule reconciles GAAP net income to non-GAAP metrics, showing Q2 2025 FFO of **$279.4 million**, Core FFO of **$296.7 million**, and AFFO of **$253.4 million** after adjustments FFO, Core FFO, and AFFO Per Share (Diluted) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | FFO per share | $0.45 | $0.34 | $0.90 | $0.77 | | Core FFO per share | $0.48 | $0.47 | $0.97 | $0.94 | | AFFO per share | $0.41 | $0.40 | $0.84 | $0.81 | [Schedule 2: Capital Structure Information](index=11&type=section&id=Schedule%202%3A%20Capital%20Structure%20Information) [Diluted Shares Outstanding](index=11&type=section&id=Schedule%202%28a%29%3A%20Diluted%20Shares%20Outstanding) This schedule details the weighted average diluted share counts for Q2 2025, with **613.3 million** for net income and **615.8 million** for FFO, Core FFO, and AFFO calculations Weighted Average Diluted Shares (Q2 2025) | Calculation For | Share Count | | :--- | :--- | | Net Income | 613,261,904 | | FFO, Core FFO, and AFFO | 615,771,167 | [Debt Structure and Leverage Ratios](index=12&type=section&id=Schedule%202%28b%29%3A%20Debt%20Structure%20and%20Leverage%20Ratios) As of June 30, 2025, the company's debt structure featured **$8.25 billion** in total debt, predominantly unsecured and fixed-rate, with a **Net Debt / TTM Adjusted EBITDAre of 5.3x**, and full covenant compliance Debt Structure as of June 30, 2025 | Debt Type | Balance ($ in thousands) | % of Total | | :--- | :--- | :--- | | Secured | $1,388,398 | 16.9% | | Unsecured | $6,865,000 | 83.1% | | **Total Debt** | **$8,253,398** | **100.0%** | - The **Net Debt / TTM Adjusted EBITDAre was 5.3x**, and the company maintained investment-grade credit ratings, including a **'BBB' rating with a 'Positive' outlook from S&P Global Ratings**[53](index=53&type=chunk) - The company is in compliance with all major financial covenants for its unsecured facilities and public bonds, with significant headroom on ratios like total leverage (**29.0% vs. ≤60% requirement**) and fixed charge coverage (**4.3x vs. ≥1.5x requirement**)[53](index=53&type=chunk) [Debt Maturity Schedule](index=14&type=section&id=Schedule%202%28c%29%3A%20Debt%20Maturity%20Schedule) The company maintains a well-staggered debt maturity profile with no significant final maturities until **2027**, extending a manageable ladder of maturities out to **2036** - There is no debt reaching final maturity in **2025 or 2026**. The next maturity is **$988 million of secured debt in 2027**[58](index=58&type=chunk) [Active Swap Schedule](index=15&type=section&id=Schedule%202%28d%29%3A%20Active%20Swap%20Schedule) As of June 30, 2025, Invitation Homes had **$2.0 billion** in active interest rate swaps with a weighted average strike rate of **3.08%**, plus a **$300 million** forward-starting swap - The company has **$2.0 billion in active notional swaps** to manage interest rate risk on its floating-rate debt[61](index=61&type=chunk) [Schedule 3: Summary of Operating Information by Home Portfolio](index=16&type=section&id=Schedule%203%3A%20Summary%20of%20Operating%20Information%20by%20Home%20Portfolio) [Summary of Operating Information by Home Portfolio](index=16&type=section&id=Schedule%203%28a%29%3A%20Summary%20of%20Operating%20Information%20by%20Home%20Portfolio) This schedule compares the Q2 2025 performance of the Total Portfolio against the Same Store Portfolio, showing **2.9%** and **2.5%** NOI growth respectively Q2 2025 YoY Growth Comparison | Metric | Total Portfolio | Same Store Portfolio | | :--- | :--- | :--- | | Core Revenues Growth | 3.0% | 2.4% | | Core Operating Expenses Growth | 3.2% | 2.2% | | NOI Growth | 2.9% | 2.5% | [Same Store Portfolio Core Operating Detail](index=17&type=section&id=Schedule%203%28b%29%3A%20Same%20Store%20Portfolio%20Core%20Operating%20Detail) Detailed Q2 2025 Same Store operating results show **2.4%** core revenue growth and **2.2%** core operating expense growth, leading to **2.5%** NOI growth - Q2 2025 Same Store Core Revenues grew **2.4% YoY**, while Core Operating Expenses grew **2.2% YoY**, resulting in **2.5% NOI growth**[67](index=67&type=chunk) - Within expenses, fixed expenses (property taxes, insurance, HOA) grew **1.3% YoY**, while controllable expenses (R&M, personnel, turnover) grew **3.9% YoY**[67](index=67&type=chunk) [Same Store Quarterly Operating Trends](index=18&type=section&id=Schedule%203%28c%29%3A%20Same%20Store%20Quarterly%20Operating%20Trends) Quarterly trends for the Same Store portfolio show stable high occupancy at **97.2%** in Q2 2025, with blended rental rate growth of **4.0%**, moderating from Q2 2024 Same Store Quarterly Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Average Occupancy | 97.2% | 97.3% | 97.6% | | Turnover Rate | 6.2% | 5.0% | 6.2% | | Average Monthly Rent | $2,445 | $2,431 | $2,382 | | Blended Rent Growth | 4.0% | 3.6% | 5.0% | [Schedule 4: Home Characteristics by Market](index=19&type=section&id=Schedule%204%3A%20Home%20Characteristics%20by%20Market) This schedule provides a Q2 2025 snapshot of the wholly owned portfolio by market, highlighting geographic diversification and key revenue contributions from Western US and Florida regions Top 5 Markets by Revenue Contribution (Wholly Owned) | Market | Number of Homes | Average Monthly Rent | Percent of Revenue | | :--- | :--- | :--- | :--- | | Atlanta | 12,634 | $2,088 | 12.6% | | South Florida | 8,134 | $3,109 | 11.9% | | Southern California | 7,184 | $3,183 | 10.9% | | Tampa | 9,658 | $2,307 | 10.7% | | Phoenix | 9,214 | $2,069 | 9.6% | [Schedule 5: Same Store Operating Information by Market](index=20&type=section&id=Schedule%205%3A%20Same%20Store%20Operating%20Information%20by%20Market) [Same Store Core Revenues Growth Summary](index=20&type=section&id=Schedule%205%28a%29%3A%20Same%20Store%20Core%20Revenues%20Growth%20Summary) This schedule details Q2 2025 Same Store core revenue growth by market, with the Midwest leading at **4.3%** YoY and Florida showing the weakest growth at **1.9%** Q2 2025 Same Store Core Revenues Growth (YoY) by Region | Region | Core Revenues Change | | :--- | :--- | | Midwest US | 4.3% | | Southeast US | 3.1% | | Western US | 2.4% | | Florida | 1.9% | | Texas | 1.5% | | **Total** | **2.4%** | [Same Store NOI Growth and Margin Summary](index=23&type=section&id=Schedule%205%28b%29%3A%20Same%20Store%20NOI%20Growth%20and%20Margin%20Summary) This schedule breaks down Q2 2025 Same Store NOI growth by market, with Texas leading at **9.9%** YoY and the Southeast showing the weakest performance at **0.5%** Q2 2025 Same Store NOI Growth (YoY) by Region | Region | NOI Change | | :--- | :--- | | Texas | 9.9% | | Midwest US | 5.2% | | Florida | 2.8% | | Western US | 2.2% | | Southeast US | 0.5% | | **Total** | **2.5%** | [Same Store Lease-Over-Lease Rent Growth](index=26&type=section&id=Schedule%205%28c%29%3A%20Same%20Store%20Lease-Over-Lease%20Rent%20Growth) This schedule details Q2 2025 Same Store lease-over-lease rent growth, with the Midwest achieving the highest blended growth at **8.1%** and overall blended growth at **4.0%** Q2 2025 Blended Rent Growth by Region | Region | Renewal Leases | New Leases | Blended Average | | :--- | :--- | :--- | :--- | | Midwest US | 7.5% | 10.5% | 8.1% | | Southeast US | 5.1% | 2.7% | 4.4% | | Western US | 4.1% | 3.3% | 3.9% | | Florida | 5.0% | 0.3% | 3.6% | | Texas | 3.2% | 0.4% | 2.5% | | **Total / Average** | **4.7%** | **2.2%** | **4.0%** | [Schedule 6: Cost to Maintain and Capital Expenditure Detail](index=27&type=section&id=Schedule%206%3A%20Cost%20to%20Maintain%20and%20Capital%20Expenditure%20Detail) This schedule details Q2 2025 property maintenance costs, showing Same Store Total Cost to Maintain (net) at **$75.0 million** and total wholly owned capital expenditures at **$70.4 million** Same Store Cost to Maintain, net (Q2 2025) | Category | Amount ($ in thousands) | | :--- | :--- | | Total recurring operating expenses, net | $36,150 | | Total Recurring Capital Expenditures | $38,851 | | **Total Cost to Maintain, net** | **$75,001** | Total Wholly Owned Portfolio Capital Expenditure Detail (Q2 2025) | Category | Amount ($ in thousands) | | :--- | :--- | | Recurring CapEx | $42,949 | | Value Enhancing CapEx | $18,314 | | Initial Renovation CapEx | $8,269 | | Disposition CapEx | $869 | | **Total Capital Expenditures** | **$70,401** | [Schedule 7: Adjusted Property Management and G&A Reconciliation](index=28&type=section&id=Schedule%207%3A%20Adjusted%20Property%20Management%20and%20G%26A%20Reconciliation) This schedule reconciles Q2 2025 GAAP G&A expenses of **$23.6 million** to an adjusted non-GAAP G&A of **$16.7 million**, primarily by excluding share-based compensation Adjusted G&A Expense Reconciliation (Q2 2025, $ in thousands) | Item | Amount | | :--- | :--- | | G&A expense (GAAP) | $23,591 | | Adjustments: | | | Share-based compensation expense | ($6,898) | | Severance expense | ($35) | | **Adjusted G&A expense** | **$16,658** | [Schedule 8: Acquisitions, Dispositions, and Homebuilder Pipeline](index=29&type=section&id=Schedule%208%3A%20Acquisitions%2C%20Dispositions%2C%20and%20Homebuilder%20Pipeline) [Acquisitions and Dispositions](index=29&type=section&id=Schedule%208%28a%29%3A%20Acquisitions%20and%20Dispositions) In Q2 2025, the company acquired **939 wholly owned homes** and disposed of **295 homes**, with active acquisition markets in Texas and Florida, and joint venture activity Q2 2025 Wholly Owned Portfolio Activity | Activity | Homes | Average Price/Cost | | :--- | :--- | :--- | | Acquisitions | 939 | $336,425 | | Dispositions | 295 | $375,120 | - Estimated stabilized cap rates on wholly owned acquisitions averaged **5.7%**, while cap rates on dispositions averaged **1.8%**[100](index=100&type=chunk) [Expected Acquisition Pipeline of New Homes from Homebuilders](index=31&type=section&id=Schedule%208%28b%29%3A%20Expected%20Acquisition%20Pipeline%20of%20New%20Homes%20from%20Homebuilders) As of June 30, 2025, the company has an acquisition pipeline of **1,338 new homes** under contract from homebuilders, with most deliveries expected in the second half of 2025 Acquisition Pipeline Summary | Metric | Value | | :--- | :--- | | Total Homes in Pipeline | 1,338 | | Avg. Estimated Cost Basis | $340,000 | | Estimated Deliveries in Q3-Q4 2025 | 732 | | Estimated Deliveries in 2026 | 474 | [Glossary and Reconciliations](index=32&type=section&id=Glossary%20and%20Reconciliations) [Glossary of Terms](index=32&type=section&id=Glossary%20of%20Terms) This section provides detailed definitions for key financial and operating metrics, including non-GAAP measures like FFO, Core FFO, AFFO, and Same Store Portfolio, ensuring reporting transparency - Defines key non-GAAP metrics like FFO (Funds from Operations), Core FFO, and AFFO (Adjusted Funds from Operations) which are used to evaluate the performance of real estate companies[118](index=118&type=chunk) - Explains the composition of the 'Same Store Portfolio,' which includes wholly owned homes that have been stabilized for at least **15 months**, providing a basis for organic, like-for-like performance comparison[131](index=131&type=chunk)[133](index=133&type=chunk) - Details the definitions and calculation methods for financial covenants related to the company's unsecured credit facilities and public bonds, which are critical for assessing financial health and risk[138](index=138&type=chunk)[148](index=148&type=chunk) [Reconciliations](index=37&type=section&id=Reconciliations) This section provides detailed numerical reconciliations of non-GAAP financial measures to GAAP, including bridges from Net Income to Same Store NOI and Adjusted EBITDAre, ensuring transparency of performance metrics - Provides a reconciliation from GAAP Net Income to Same Store NOI, showing adjustments for items like interest, depreciation, G&A, and non-same store operations[161](index=161&type=chunk)[162](index=162&type=chunk) - Includes a detailed reconciliation of GAAP Net Income to Adjusted EBITDAre, adjusting for interest, taxes, depreciation, amortization, and other specific items like share-based compensation and casualty losses[165](index=165&type=chunk) - Presents the calculation for Net Debt / TTM Adjusted EBITDAre, a key leverage ratio, by reconciling total debt from the balance sheet to net debt and dividing by the trailing twelve months Adjusted EBITDAre[169](index=169&type=chunk)

Core Viewpoint - Invitation Homes (INVH) is expected to report an increase in revenues and funds from operations (FFO) per share for the second quarter of 2025, with results anticipated on July 30, after market close [1][11]. Company Performance - In the last reported quarter, INVH achieved a core FFO per share of 48 cents, surpassing the Zacks Consensus Estimate of 47 cents, driven by higher same-store net operating income (NOI) and blended rent, although lower occupancy impacted performance [2][12]. - Over the past four quarters, INVH's core FFO per share met or exceeded the Zacks Consensus Estimate, with an average beat of 1.08% [3]. U.S. Apartment Market Overview - The U.S. apartment market showed resilience in Q2 2025, absorbing over 227,000 units, surpassing previous peak leasing surges despite economic uncertainties [4]. - National occupancy rose to 95.6% in June, a 140 basis point increase year-over-year, while rent growth remained muted at 0.19% [5]. - More than 535,000 units were completed in the past year, with 108,000 delivered in Q2, indicating the market's strength in absorbing new supply [6]. Regional Market Dynamics - Tech-driven markets like San Francisco, San Jose, Boston, and New York gained momentum, while Sun Belt markets such as Dallas and Atlanta showed recovery [7]. - Tourism-dependent cities like Las Vegas and Orlando experienced slight declines, reflecting softening discretionary spending, while supply-heavy markets like Austin and Phoenix saw significant rent cuts [7]. Factors Supporting Invitation Homes - INVH's performance is likely bolstered by its diverse portfolio of single-family rental units in high-growth markets, supported by favorable demographic trends [8]. - The company's asset-light model, partnering with homebuilders for built-to-rent units, provides healthy yields with limited risk, contributing positively to revenues [9]. Revenue Projections - The Zacks Consensus Estimate for INVH's rental revenues is projected at $654.09 million for Q2, up from $576.87 million in the prior year, while total revenues are estimated at $676.86 million, reflecting a 3.58% increase year-over-year [10][11]. - The consensus estimate for FFO per share remains unchanged at 48 cents, indicating a 2.13% year-over-year increase [12]. Earnings Prediction - The current Earnings ESP for INVH is -1.79%, with a Zacks Rank of 3, indicating that the model does not predict a surprise in FFO per share this quarter [13].

Financial Performance & Growth - Preliminary QTD 2025 Same Store results show blended lease rate growth of 4.1% compared to 3.6% in Q1 2025[4] - Renewal lease rate growth is 4.7% versus 5.2% in Q1 2025[4] - New lease rate growth is 2.5% compared to (0.1%) in Q1 2025, representing an acceleration of >500 bps from December 2024 to May 2025[3,4] - The company has an affordability gap of approximately $1,100 per month, where the cost of home ownership exceeds the cost of leasing[3] - Invitation Homes' cumulative Same Store NOI Growth from 2017-2024 was +60.7%[21] Portfolio & Strategy - Approximately 96% of the wholly-owned portfolio is located in the Western U S, Sunbelt, and Florida[8,26] - The company has an average of over 5,300 wholly-owned homes across its 16 core markets[8] - The company manages approximately 25,000 JV and third-party managed homes, nearly all of which are in core and identified target markets[8] - The company has >1,800 homes under construction through its BTR partnership strategy as of March 31, 2025[11] Market & Operations - The company has 85,261 wholly-owned homes, 7,660 JV-owned homes, and 17,336 3rd party managed homes[35] - The company has approximately 1,000 field operations personnel covering 40 home pods[8,35] - Value-add revenues have grown from $23 million to $80 million[44]