Core Insights - Invitation Home (INVH) reported revenue of $674.48 million for Q1 2025, a year-over-year increase of 4.4% and an EPS of $0.48 compared to $0.23 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1][4] Financial Performance - Revenue from management fees was $21.41 million, slightly above the estimated $21.32 million, reflecting a significant year-over-year increase of 53.6% [4] - Rental revenues amounted to $585.19 million, below the average estimate of $647.02 million, but still showing a year-over-year growth of 2.4% [4] - The net earnings per share (diluted) were reported at $0.27, surpassing the five-analyst average estimate of $0.19 [4] Market Performance - Over the past month, shares of Invitation Home have returned -2.6%, underperforming the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

[Earnings Press Release](index=3&type=section&id=Earnings%20Press%20Release) [Q1 2025 Highlights & CEO Comments](index=3&type=section&id=Q1%202025%20Highlights%20%26%20CEO%20Comments) Invitation Homes reported stable Q1 2025 results, marked by a credit outlook upgrade, favorable loan amendment, and accelerating new lease rent growth - S&P Global Ratings upgraded the company's outlook to **'Positive'** from 'Stable' and reaffirmed its **'BBB'** credit rating[7](index=7&type=chunk) - Amended a **$725 million** term loan, extending maturity to April 2030 and lowering the interest rate by **40 basis points**[7](index=7&type=chunk) - CEO Dallas Tanner highlighted accelerating new lease rent growth, reaching **2.7%** in preliminary April, with Same Store renewal rent growth at **5.2%** in Q1[8](index=8&type=chunk) - The company reiterated its **FY 2025 guidance**, maintaining a cautious yet confident outlook on the core business[9](index=9&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) Q1 2025 saw broad year-over-year growth in key financial metrics, with total revenues up 4.4% to **$674 million** and net income rising 16.4% to **$166 million** Q1 2025 Key Financial Metrics (YoY) | Metric | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | Total Revenues | $674 million | +4.4% | | Net Income to Common Stockholders | $166 million | +16.4% | | Net Income per Share (diluted) | $0.27 | +16.5% | | Core FFO per Share | $0.48 | +3.5% | | AFFO per Share | $0.42 | +4.0% | Per Share Financial Results (Diluted) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $0.27 | $0.23 | | FFO | $0.45 | $0.43 | | Core FFO | $0.48 | $0.47 | | AFFO | $0.42 | $0.41 | [Operating Results](index=4&type=section&id=Operating%20Results) The Same Store portfolio showed solid Q1 2025 operating performance, with NOI growing **3.7%** year-over-year, driven by **2.5%** core revenue growth and flat operating expenses Q1 2025 Same Store Operating Results Snapshot (YoY) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | NOI Growth | 3.7% | N/A | | Core Revenues Growth | 2.5% | N/A | | Core Operating Expenses Growth | 0.0% | N/A | | Average Occupancy | 97.2% | 97.8% | | Blended Rental Rate Growth | 3.6% | 4.3% | | Renewal Rent Growth | 5.2% | 5.7% | | New Lease Rent Growth | (0.1)% | 0.7% | | Bad Debt % of Gross Rental Revenue | 0.7% | 0.8% | - Same Store Core Operating Expenses showed **no growth** year-over-year, due to a **1.0%** increase in fixed expenses offset by a **2.1%** reduction in controllable expenses[21](index=21&type=chunk) [Investment and Property Management Activity](index=5&type=section&id=Investment%20and%20Property%20Management%20Activity) In Q1 2025, the company acquired **631** homes for approximately **$213 million** and disposed of **470** homes for approximately **$179 million** - Acquisitions (wholly owned and JV) totaled **631 homes** for approximately **$213 million**[22](index=22&type=chunk) - Dispositions (wholly owned and JV) totaled **470 homes** for approximately **$179 million** in gross proceeds[22](index=22&type=chunk) Summary of Homes Owned and/or Managed as of 3/31/2025 | Category | 12/31/2024 | Q1 2025 Acquired/Added | Q1 2025 Disposed/Subtracted | 3/31/2025 | | :--- | :--- | :--- | :--- | :--- | | Wholly owned homes | 85,138 | 577 | (454) | 85,261 | | Joint venture owned homes | 7,622 | 54 | (16) | 7,660 | | Managed-only homes | 17,678 | 0 | (342) | 17,336 | | **Total** | **110,438** | **631** | **(812)** | **110,257** | [Balance Sheet and Capital Markets Activity](index=5&type=section&id=Balance%20Sheet%20and%20Capital%20Markets%20Activity) As of March 31, 2025, the company maintained a strong balance sheet with **$1.36 billion** in liquidity and **$8.18 billion** total debt, with no maturities before 2027 - Available liquidity was **$1,364 million** from unrestricted cash and undrawn revolving credit facility[24](index=24&type=chunk) - Total indebtedness was **$8,184 million**, with **83.0%** unsecured and **87.5%** fixed rate or swapped to fixed[24](index=24&type=chunk) - Net debt / TTM adjusted EBITDAre was **5.3x**[24](index=24&type=chunk) - No debt is reaching final maturity before **2027**[24](index=24&type=chunk) [FY 2025 Guidance](index=5&type=section&id=FY%202025%20Guidance) Invitation Homes reiterated its FY 2025 guidance, projecting Core FFO per share between **$1.88** and **$1.94**, and Same Store NOI growth between **1.00%** and **3.00%** FY 2025 Guidance | Metric | FY 2025 Guidance Range | 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 Core Revenues growth | 1.75% to 3.25% | 2.5% | | Same Store Core Operating Expenses growth | 2.75% to 4.25% | 3.5% | | 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 assumes FY 2025 Average Occupancy of **96.2% to 96.8%** and Bad Debt of **60 to 90 basis points**[30](index=30&type=chunk) - Guidance for Same Store Core Operating Expenses assumes a **5.0% to 6.0%** increase in property taxes and a **2.0% to 3.0%** reduction in insurance expenses[31](index=31&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 March 31, 2025, total assets were **$18.58 billion** and total liabilities **$8.82 billion**, with investments in properties at **$17.20 billion** Consolidated Balance Sheet Highlights ($ in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$18,578,092** | **$18,700,951** | | Investments in single-family properties, net | $17,203,322 | $17,212,126 | | Cash and cash equivalents | $84,387 | $174,491 | | **Total Liabilities** | **$8,823,078** | **$8,908,442** | | Secured debt, net | $1,383,383 | $1,385,573 | | Unsecured notes, net | $3,802,333 | $3,800,688 | | **Total Equity** | **$9,755,014** | **$9,792,509** | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues grew to **$674.5 million**, driving net income to **$166.3 million** (up 16.4%), despite higher operating expenses, aided by property sales gains Consolidated Statements of Operations Highlights ($ in thousands) | Account | Q1 2025 (unaudited) | Q1 2024 (unaudited) | | :--- | :--- | :--- | | **Total Revenues** | **$674,479** | **$646,039** | | Rental revenues | $585,193 | $571,430 | | **Total Expenses** | **$575,789** | **$554,377** | | Property operating and maintenance | $237,449 | $230,397 | | Interest expense | $84,254 | $89,845 | | Gain on sale of property, net of tax | $71,666 | $50,498 | | **Net Income** | **$166,282** | **$142,786** | | Net income per common share — diluted | $0.27 | $0.23 | [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 FFO, Core FFO, and AFFO, showing Q1 2025 FFO at **$277.2 million**, Core FFO at **$298.3 million**, and AFFO at **$261.0 million** Q1 2025 Reconciliation of FFO, Core FFO, and AFFO ($ in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income available to common stockholders | $165,517 | $142,158 | | **FFO** | **$277,240** | **$266,785** | | **Core FFO** | **$298,320** | **$288,283** | | **AFFO** | **$260,973** | **$251,161** | Per Share Reconciliation (Diluted) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | FFO per share | $0.45 | $0.43 | | Core FFO per share | $0.48 | $0.47 | | AFFO per share | $0.42 | $0.41 | [Schedule 2: Capital Structure Information](index=11&type=section&id=Schedule%202%3A%20Capital%20Structure%20Information) [Diluted Shares Outstanding](index=11&type=section&id=2a_Diluted_Shares_Outstanding) This schedule details diluted shares outstanding, with Q1 2025 weighted average at approximately **615.6 million** for FFO, Core FFO, and AFFO calculations Weighted Average Diluted Shares for FFO, Core FFO, and AFFO | Period | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total common shares and units — diluted | 615,645,848 | 615,987,206 | [Debt Structure and Leverage Ratios](index=12&type=section&id=2b_Debt_Structure_and_Leverage_Ratios) As of March 31, 2025, total debt was **$8.18 billion** with a **4.0%** weighted average interest rate, predominantly unsecured and fixed-rate, and a Net Debt / TTM Adjusted EBITDAre ratio of **5.3x** Debt Structure as of March 31, 2025 | Debt Type | Balance ($ thousands) | % of Total | Wtd Avg Interest Rate | Wtd Avg Years to Maturity | | :--- | :--- | :--- | :--- | :--- | | Total Secured | $1,389,410 | 17.0% | 4.0% | 3.3 | | Total Unsecured | $6,795,000 | 83.0% | 4.0% | 5.8 | | **Total Debt** | **$8,184,410** | **100.0%** | **4.0%** | **5.4** | - Net Debt / TTM Adjusted EBITDAre stood at **5.3x**[51](index=51&type=chunk) - S&P Global Ratings upgraded the outlook to **'Positive'** from 'Stable' on April 3, 2025, reaffirming the **'BBB'** rating[55](index=55&type=chunk) - The company is in compliance with all unsecured facility and public bond covenants, with significant headroom on all metrics[51](index=51&type=chunk) [Debt Maturity Schedule](index=14&type=section&id=2c_Debt_Maturity_Schedule) The debt maturity schedule shows no maturities in 2025 or 2026, with the first significant maturity of **$989 million** in 2027 and the largest concentration in 2029 - There are no debt maturities in **2025** and **2026**, assuming all extension options are exercised[56](index=56&type=chunk) Debt Maturities by Year ($ in thousands) | Year | Balance | % of Total | | :--- | :--- | :--- | | 2027 | $989,024 | 12.1% | | 2028 | $750,000 | 9.2% | | 2029 | $2,945,000 | 36.0% | | 2030 | $450,000 | 5.5% | | Thereafter | $3,550,386 | 43.4% | | **Total** | **$8,184,410** | **100.0%** | - A **$725 million** term loan originally maturing in June 2029 was amended post-quarter end to mature in April 2030, not reflected in the table[57](index=57&type=chunk) [Active Swap Schedule](index=15&type=section&id=2d_Active_Swap_Schedule) As of March 31, 2025, active interest rate swaps totaled **$1.925 billion** notional value with a **2.96%** weighted average strike rate, including a **$300 million** forward-starting swap Active Swaps as of March 31, 2025 | Metric | Value | | :--- | :--- | | Total Notional | $1,925,000,000 | | Weighted Average Strike Rate | 2.96% | - A forward-starting swap for **$300 million** with a strike rate of **2.99%** becomes effective in July 2025[60](index=60&type=chunk) [Schedule 3: Summary of Operating Information by Home Portfolio](index=16&type=section&id=Schedule%203%3A%20Summary%20of%20Operating%20Information%20by%20Home%20Portfolio) [Summary of Operating Information by Home Portfolio](index=16&type=section&id=3a_Summary_of_Operating_Information_by_Home_Portfolio) Q1 2025 operating performance shows the Same Store portfolio (78,078 homes) with **2.5%** Core Revenue growth and **3.7%** NOI growth, consistent with the Total Portfolio Q1 2025 YoY Operating Performance ($ in thousands) | Metric | Total Portfolio | Same Store Portfolio | | :--- | :--- | :--- | | **Core Revenues** | | | | Q1 2025 | $608,953 | $571,050 | | Change YoY | 2.5% | 2.5% | | **Core Operating Expenses** | | | | Q1 2025 | $193,331 | $176,399 | | Change YoY | 0.4% | 0.0% | | **Net Operating Income** | | | | Q1 2025 | $415,622 | $394,651 | | Change YoY | 3.5% | 3.7% | [Same Store Portfolio Core Operating Detail](index=17&type=section&id=3b_Same_Store_Portfolio_Core_Operating_Detail) Q1 2025 Same Store NOI grew **3.7%** to **$394.7 million**, driven by **2.5%** Core Revenue growth and flat Core Operating Expenses, with controllable expenses decreasing **2.1%** Same Store Core Operating Detail YoY Change (Q1 2025 vs Q1 2024) | Category | Change YoY | | :--- | :--- | | Core Revenues | +2.5% | | Total Fixed Expenses | +1.0% | | Total Controllable Expenses | -2.1% | | **Core Operating Expenses** | **0.0%** | | **Net Operating Income** | **+3.7%** | [Same Store Quarterly Operating Trends](index=18&type=section&id=3c_Same_Store_Quarterly_Operating_Trends) Q1 2025 Same Store quarterly trends show sequential improvements, with average occupancy at **97.2%**, new lease rent growth improving to **-0.1%**, and blended rent growth at **3.6%** Same Store Quarterly Operating Trends | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Average Occupancy | 97.2% | 96.8% | 97.8% | | Turnover Rate | 5.0% | 5.2% | 5.2% | | Average Monthly Rent | $2,431 | $2,417 | $2,359 | | **Rental Rate Growth:** | | | | | Renewals | 5.2% | 4.1% | 5.7% | | New leases | (0.1)% | (2.2)% | 0.7% | | Blended | 3.6% | 2.2% | 4.3% | [Schedule 4: Home Characteristics by Market](index=19&type=section&id=Schedule%204%3A%20Home%20Characteristics%20by%20Market) As of Q1 2025, the wholly owned portfolio comprised **85,261 homes** with **95.2%** average occupancy and **$2,424** average monthly rent, concentrated in Western US and Florida Wholly Owned Portfolio Characteristics by Region (Q1 2025) | Region | Number of Homes | Average Occupancy | Average Monthly Rent | Percent of Revenue | | :--- | :--- | :--- | :--- | :--- | | Western US | 30,719 | 96.8% | $2,595 | 39.2% | | Florida | 26,560 | 94.7% | $2,529 | 32.4% | | Southeast US | 18,664 | 94.5% | $2,077 | 18.6% | | Texas | 5,615 | 92.1% | $2,137 | 5.7% | | Midwest US | 3,513 | 95.6% | $2,420 | 4.0% | | **Total / Average** | **85,261** | **95.2%** | **$2,424** | **100.0%** | [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=5a_Same_Store_Core_Revenues_Growth_Summary) Q1 2025 Same Store Core Revenues grew **2.5%** YoY, driven by a **3.1%** increase in average monthly rent, with sequential growth of **1.2%** across all regions Q1 2025 Same Store Core Revenues Growth (YoY) | Region | Avg. Monthly Rent Change | Avg. Occupancy Change | Core Revenues Change | | :--- | :--- | :--- | :--- | | Western US | +2.9% | -0.3% | +2.6% | | Florida | +2.9% | -0.6% | +2.1% | | Southeast US | +3.5% | -1.0% | +3.1% | | Texas | +2.5% | -0.9% | +1.8% | | Midwest US | +4.2% | -1.0% | +3.5% | | **Total** | **+3.1%** | **-0.6%** | **+2.5%** | Q1 2025 Same Store Core Revenues Growth (Sequential vs Q4 2024) | Region | Core Revenues Change | | :--- | :--- | | Western US | +1.0% | | Florida | +1.2% | | Southeast US | +1.3% | | Texas | +1.5% | | Midwest US | +1.5% | | **Total** | **+1.2%** | [Same Store NOI Growth and Margin Summary](index=22&type=section&id=5b_Same_Store_NOI_Growth_and_Margin_Summary) Q1 2025 Same Store NOI grew **3.7%** YoY, with Core NOI margin expanding to **69.1%**, notably driven by **17.5%** NOI growth in Texas due to expense reduction Q1 2025 Same Store NOI Growth (YoY) | Region | Core Revenues Change | Core OpEx Change | NOI Change | Core NOI Margin Q1 2025 | | :--- | :--- | :--- | :--- | :--- | | Western US | +2.6% | -0.6% | +3.5% | 76.8% | | Florida | +2.1% | +0.4% | +3.1% | 62.5% | | Southeast US | +3.1% | +5.9% | +1.8% | 67.9% | | Texas | +1.8% | -17.4% | +17.5% | 63.6% | | Midwest US | +3.5% | +3.7% | +3.4% | 59.7% | | **Total** | **+2.5%** | **0.0%** | **+3.7%** | **69.1%** | Q1 2025 Same Store NOI Growth (Sequential vs Q4 2024) | Region | NOI Change | | :--- | :--- | | Western US | +1.1% | | Florida | +0.4% | | Southeast US | +0.4% | | Texas | +13.7% | | Midwest US | +1.0% | | **Total** | **+1.3%** | [Same Store Lease-Over-Lease Rent Growth](index=24&type=section&id=5c_Same_Store_Lease-Over-Lease_Rent_Growth) Q1 2025 Same Store blended lease-over-lease rent growth was **3.6%**, with **5.2%** on renewals and **-0.1%** on new leases, led by **6.4%** blended growth in the Midwest Q1 2025 Same Store Rental Rate Growth | Region | Renewal Leases | New Leases | Blended Average | | :--- | :--- | :--- | :--- | | Western US | 5.0% | 1.5% | 4.0% | | Florida | 5.1% | (1.8)% | 3.0% | | Southeast US | 5.7% | (0.3)% | 3.8% | | Texas | 4.0% | (2.9)% | 1.7% | | Midwest US | 6.7% | 5.5% | 6.4% | | **Total / Average** | **5.2%** | **(0.1)%** | **3.6%** | [Schedule 6: Cost to Maintain and Capital Expenditure Detail](index=25&type=section&id=Schedule%206%3A%20Cost%20to%20Maintain%20and%20Capital%20Expenditure%20Detail) [Same Store Cost to Maintain, net](index=25&type=section&id=6a_Same_Store_Cost_to_Maintain_net) Q1 2025 Same Store Total Cost to Maintain, net, was **$63.1 million** or **$808 per home**, slightly lower than Q1 2024, comprising recurring operating and capital expenditures Same Store Cost to Maintain, net ($ in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total recurring operating expenses, net | $28,925 | $29,799 | | Total Recurring Capital Expenditures | $34,184 | $33,557 | | **Total Cost to Maintain, net** | **$63,109** | **$63,356** | | **Total Cost to Maintain, net (Per Home)** | **$808** | **$811** | [Total Wholly Owned Portfolio Capital Expenditure Detail](index=25&type=section&id=6b_Total_Wholly_Owned_Portfolio_Capital_Expenditure_Detail) Q1 2025 total capital expenditures for the wholly owned portfolio increased to **$57.9 million**, primarily driven by Recurring CapEx and Value Enhancing CapEx Total Capital Expenditures ($ in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Recurring CapEx | $37,092 | $36,923 | | Value Enhancing CapEx | $13,023 | $7,300 | | Initial Renovation CapEx | $6,869 | $7,698 | | Disposition CapEx | $952 | $716 | | **Total Capital Expenditures** | **$57,936** | **$52,637** | [Schedule 7: Adjusted Property Management and G&A Reconciliation](index=26&type=section&id=Schedule%207%3A%20Adjusted%20Property%20Management%20and%20G%26A%20Reconciliation) This schedule reconciles GAAP Property Management and G&A expenses, showing Q1 2025 adjusted property management at **$35.1 million** and adjusted G&A at **$18.6 million** Adjusted Expense Reconciliation ($ in thousands) | Expense Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Adjusted property management expense** | **$35,088** | **$29,639** | | Property management expense (GAAP) | $36,739 | $31,237 | | **Adjusted G&A expense** | **$18,627** | **$17,056** | | G&A expense (GAAP) | $29,518 | $23,448 | [Schedule 8: Acquisitions, Dispositions, and Homebuilder Pipeline](index=27&type=section&id=Schedule%208%3A%20Acquisitions%2C%20Dispositions%2C%20and%20Homebuilder%20Pipeline) [Acquisitions and Dispositions](index=27&type=section&id=8a_Acquisitions_and_Dispositions) In Q1 2025, the company acquired **577** wholly owned homes for **$336k** average cost and disposed of **454** homes for **$382k** average sales price Q1 2025 Wholly Owned Portfolio Activity | Activity | Homes | Average Price/Cost | | :--- | :--- | :--- | | Acquisitions | 577 | $336,057 | | Dispositions | 454 | $381,734 | - Estimated stabilized cap rate on wholly owned acquisitions was **5.9%**[94](index=94&type=chunk) - Cap rate on wholly owned dispositions was **2.1%** based on trailing 12-month NOI[94](index=94&type=chunk) [Expected Acquisition Pipeline of New Homes from Homebuilders](index=29&type=section&id=8b_Expected_Acquisition_Pipeline_of_New_Homes_from_Homebuilders) As of March 31, 2025, the homebuilder acquisition pipeline consists of **1,801** new homes under contract, with **1,245** expected for delivery in the remainder of 2025 - The acquisition pipeline from homebuilders consists of **1,801** new homes under contract as of March 31, 2025[95](index=95&type=chunk) Pipeline Rollforward | Description | Number of Homes | | :--- | :--- | | Pipeline as of December 31, 2024 | 2,031 | | Q1 2025 additions and cancellations (net) | 142 | | Q1 2025 deliveries | (372) | | **Pipeline as of March 31, 2025** | **1,801** | Estimated Delivery Schedule | Period | Number of Homes | | :--- | :--- | | Q2-Q4 2025 | 1,245 | | 2026 | 426 | | Thereafter | 130 | [Glossary and Reconciliations](index=30&type=section&id=Glossary%20and%20Reconciliations) [Glossary of Terms](index=30&type=section&id=Glossary_of_Terms) This section defines key GAAP and non-GAAP financial and operating metrics, including FFO, Core FFO, AFFO, NOI, and Same Store Portfolio, clarifying calculation methodologies - **FFO (Funds from Operations):** Defined by Nareit as net income excluding gains/losses from sales of depreciated real estate, plus real estate depreciation and amortization[112](index=112&type=chunk) - **Core FFO:** FFO adjusted for items like non-cash interest, share-based compensation, severance, and casualty losses[112](index=112&type=chunk) - **AFFO (Adjusted FFO):** Core FFO less Recurring Capital Expenditures[112](index=112&type=chunk) - **Same Store Portfolio:** Includes wholly owned homes stabilized for at least 15 months prior to the comparison year, providing a basis for organic growth comparison[125](index=125&type=chunk)[127](index=127&type=chunk) [Reconciliations of Non-GAAP Measures](index=35&type=section&id=Reconciliations_of_Non-GAAP_Measures) This section provides detailed reconciliations of key non-GAAP measures, including Same Store NOI, Adjusted EBITDAre, and Net Debt to TTM Adjusted EBITDAre ratio, to their GAAP counterparts Reconciliation of Net Income to Same Store NOI (Q1 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income available to common stockholders | $165,517 | | *Plus/Minus various adjustments* | ... | | **NOI (Total Portfolio)** | **$415,622** | | Non-Same Store NOI | ($20,971) | | **Same Store NOI** | **$394,651** | Reconciliation of Net Income to Adjusted EBITDAre (TTM Ended Mar 31, 2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net income available to common stockholders | $476,523 | | *Plus/Minus various adjustments* | ... | | **EBITDAre** | **$1,338,577** | | *Plus/Minus various adjustments* | ... | | **Adjusted EBITDAre** | **$1,512,591** | Net Debt / TTM Adjusted EBITDAre Calculation (as of Mar 31, 2025) | Component | Amount (in thousands) | | :--- | :--- | | Net Debt (A) | $7,996,867 | | Adjusted EBITDAre (B) | $1,512,591 | | **Ratio (A / B)** | **5.3x** |

Core Viewpoint - Invitation Homes (INVH) is expected to report a year-over-year increase in revenues for Q1 2025, with no change in funds from operations (FFO) per share [1][11]. Company Performance - In the last reported quarter, INVH posted a core FFO per share of 47 cents, meeting the Zacks Consensus Estimate, driven by higher same-store net operating income (NOI) and blended rent, although lower occupancy impacted performance [2][3]. - Over the past four quarters, INVH's core FFO per share met or surpassed the Zacks Consensus Estimate, with an average beat of 1.09% [3]. US Apartment Market Overview - The first quarter of 2025 saw strong apartment demand, with over 138,000 market-rate apartment units absorbed, marking the highest first-quarter demand on record [4]. - Annual absorption reached nearly 708,000 units, matching the early 2022 demand boom, while supply is forecasted to decline, indicating a peak in the construction cycle [5]. - Occupancy rose to 95.2% in March, the highest since October 2022, with effective rents increasing by 0.75% in March and 1.1% year-over-year, the highest since June 2023 [6]. Regional Performance - The Midwest and Rust Belt regions led annual rent gains, while high-supply Sun Belt metros like Austin and Phoenix experienced rent cuts but showed monthly rent growth in March [7]. Factors Influencing Invitation Homes - INVH's performance is likely supported by its high-quality portfolio of single-family rental units in high-demand areas, particularly in the Western United States and Florida [8]. - The company aims to enhance profitability through a value-added platform and minimal capital investment, with a growing third-party management business contributing positively to revenues [9]. Financial Projections - The Zacks Consensus Estimate for INVH's rental revenues for Q1 2025 is $647 million, reflecting a 13.2% increase from the previous year [10]. - Total revenues are estimated at $669.4 million, indicating a 3.6% rise year-over-year, although the consensus estimate for quarterly FFO per share was lowered to 47 cents, suggesting no change from the prior year [11].

Core Viewpoint - Dividend stocks can provide a combination of attractive and growing dividend income along with stock price appreciation, helping investors grow their wealth steadily [1] Group 1: Dividend Stocks Overview - Johnson & Johnson, Invitation Homes, and NextEra Energy are highlighted as top dividend stocks, each offering yields over 3%, significantly higher than the S&P 500's yield of 0.13% [2] - These companies have a strong history of increasing their dividend payments, which is expected to continue [2][13] Group 2: Johnson & Johnson - Johnson & Johnson currently has a dividend yield of 3.3%, generating $3.30 of dividend income annually for every $100 invested [4] - The company boasts a AAA-bond rating and a strong balance sheet with $13.5 billion in net debt against $38.8 billion in cash, supporting its $11.8 billion dividend outlay from $20 billion in free cash flow last year [5] - The company has increased its dividend by 4.8%, marking 63 consecutive years of growth, placing it among the elite Dividend Kings [6] - Johnson & Johnson invests heavily in R&D, with $17 billion spent last year, and has made over $30 billion in acquisitions, which are expected to support future dividend growth [7] Group 3: Invitation Homes - Invitation Homes has a dividend yield of 3.4% and owns or manages over 110,000 rental homes in high-demand markets, ensuring steady income [8] - The company has acquisition channels for purchasing newly built homes and currently has over 2,000 homes under construction, contributing to its growth [9] - Invitation Homes raised its dividend by 3.6% last December and has consistently increased its dividend since going public in 2017 [9] Group 4: NextEra Energy - NextEra Energy offers a dividend yield of 3.4% and generates stable cash flow from electricity demand and regulated rate structures [10] - The company is a leading investor in renewable energy infrastructure, expecting to grow its adjusted earnings per share at the high end of its 6% to 8% annual target range through at least 2027 [11] - NextEra anticipates a 10% annual increase in its dividend payout, having achieved a 10% compound annual growth rate over the past 20 years [12]

Group 1 - Invitation Homes Inc. (NYSE: INVH) was downgraded in early October of the previous year after experiencing a 36.2% increase in value [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A two-week free trial is available for new subscribers, promoting engagement in the oil and gas industry [3]

Core Viewpoint - Invitation Home's shares have increased by approximately 2.5% since the last earnings report, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1]. Estimates Movement - Estimates for Invitation Home have trended downward over the past month, indicating a negative outlook for the stock [2]. VGM Scores - Invitation Home has a poor Growth Score of F and a Momentum Score of D, with an overall aggregate VGM Score of F, placing it in the fifth quintile for value investment strategy [3]. Outlook - The downward trend in estimates suggests a negative shift, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [4].

Invitation Homes (NYSE: INVH ) is cleverly responding to the growing group of renters who cannot afford a home. This has made it a major player in the tight housing market in the Sun Belt of theI'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings ...

Portfolio Overview - The total portfolio consists of 85,138 owned homes as of December 31, 2024[26]. - The average home in the portfolio is approximately 1,880 square feet, featuring three to four bedrooms and two bathrooms, appealing to a less transitory resident base[20]. - As of December 31, 2024, the company operates approximately 5,000 homes in each of its 16 core markets, allowing for selective property sales without sacrificing operational efficiency[55]. - The Same Store portfolio consisted of 76,601 single-family rental homes as of December 31, 2024[378]. - The Same Store portfolio remained stable at 76,601 homes for both 2024 and 2023[459]. Revenue and Financial Performance - Total revenues for the year ended December 31, 2024, were $2,618.9 million, an increase of 7.7% compared to $2,432.3 million in 2023[375]. - Rental revenues and other property income increased by 5.4% to $2,549.0 million in 2024 from $2,418.6 million in 2023, driven by a 3.6% increase in average monthly rent per occupied home[380]. - Management fee revenues surged by 412.8% to $70.0 million in 2024 from $13.6 million in 2023, attributed to an increase in the number of homes managed[387]. - Net income for the year ended December 31, 2024, was $455.4 million, a decrease of 12.6% from $521.0 million in 2023[375]. - The net income available to common stockholders for the year ended December 31, 2024, was $453.164 million, a decrease of 12.6% compared to $518.774 million in 2023[449]. - Funds From Operations (FFO) for 2024 was $925,274, down 8.4% from $1,010,017 in 2023[468]. - Core FFO increased to $1,157,164 in 2024, up 6.5% from $1,086,416 in 2023[468]. - Adjusted FFO for 2024 was $986,237, reflecting a 6.8% increase from $923,365 in 2023[468]. - FFO per common share diluted was $1.50 for 2024, compared to $1.64 in 2023, a decline of 8.5%[468]. - Core FFO per common share diluted rose to $1.88 in 2024, an increase of 6.2% from $1.77 in 2023[468]. Expenses and Costs - Total expenses rose to $2,326.7 million in 2024, a 12.1% increase from $2,074.8 million in 2023[388]. - Property operating and maintenance expenses increased by 6.2% to $935.3 million in 2024, influenced by a rise in property taxes and maintenance costs[389]. - Interest expense increased to $366.1 million for the year ended December 31, 2024, up from $333.5 million in 2023, primarily due to an 11 bps increase in the weighted average interest rate and a $500.0 million increase in average debt balance[391]. - Depreciation and amortization expense rose to $714.3 million for the year ended December 31, 2024, compared to $674.3 million in 2023, driven by a $529.6 million increase in building and improvements related to an additional 571 homes owned[392]. - Casualty losses, impairment, and other expenses surged to $82.9 million in 2024 from $8.6 million in 2023, including $55.1 million for estimated losses related to hurricanes[393]. Operational Metrics - The average occupancy for the total portfolio decreased to 95.8% in 2024 from 96.6% in 2023, while average monthly rent per occupied home increased to $2,387 from $2,303[381]. - The annual turnover rate for the Same Store portfolio improved to 22.6% in 2024 from 24.3% in 2023[383]. - The company has implemented a resident-centric model that enhances living experiences and drives occupancy and low turnover rates[22]. - The turnover rate is calculated as the number of instances homes become unoccupied divided by the total number of homes, impacting average occupancy and rental revenues[17]. Strategic Initiatives - The company operates in markets with strong demand drivers and high rent growth potential, primarily in the Western United States, Florida, and the Southeast United States[19]. - The investment strategy focuses on disciplined market selection and strategic mergers and acquisitions to capture operating benefits and economies of scale[19]. - The company has established partnerships with homebuilders to purchase newly constructed homes, contributing to portfolio expansion in supply-constrained environments[50]. - The company has a disciplined acquisition strategy targeting both existing homes and newly constructed homes, focusing on high-quality single-family homes for lease[46]. - Significant investments have been made in systems and technology to support the growth of the single-family homes portfolio and third-party management platform[76]. Resident and Employee Engagement - The company has a resident engagement strategy that includes a 24/7 emergency maintenance line and proactive property management services, enhancing resident satisfaction[40]. - The company has achieved a strong associate Net Promoter Score of 60 at the end of 2024, significantly above the benchmark of 33, indicating high employee engagement[63]. - The company maintains a continuous listening associate survey tool, achieving an 82% participation rate in 2024, which informs management on engagement dimensions[63]. - Invitation Homes facilitated the third cohort of "Peak," a six-month leadership development program for 25 high potential leaders in 2024[65]. - The company has been recognized for its workplace culture, receiving awards for being one of the best companies to work for in real estate and the South in 2024[63]. Regulatory and Market Environment - Invitation Homes is closely monitoring legislative and regulatory developments regarding residential housing, which may affect operations[95]. - The company is subject to various privacy and data protection laws, including the California Consumer Privacy Act, which imposes significant operational obligations[96]. - The company faces competition from larger investors and REITs, which may increase property prices and affect rental income[82]. - Seasonal factors have historically impacted operating results, with higher resident move-outs during summer months affecting rental revenues[86]. Cash Flow and Liquidity - Net cash provided by operating activities decreased by 2.3% from $1,107.1 million in 2023 to $1,081.8 million in 2024, primarily due to settlement costs of $77.0 million related to legal disputes[421]. - Net cash used in investing activities decreased by 39.8% from $773.6 million in 2023 to $465.9 million in 2024, driven by a reduction in home acquisitions from 2,877 to 2,072 homes[422]. - Net cash used in financing activities was $1,093.7 million in 2024, compared to net cash provided of $110.0 million in 2023, largely due to the issuance of $494.3 million in unsecured notes and refinancing activities[425]. - The company is required to distribute at least 90% of its taxable income to stockholders annually, limiting its ability to retain substantial cash balances[419]. - The company believes rental income, net of total expenses, will generally provide sufficient cash flow to fund operations and dividend payments in the near term[414].

Financial Data and Key Metrics Changes - Invitation Homes reported core FFO per share growth of 6.4% and AFFO per share growth of 6.7% for the full year 2024 [7] - Total revenues grew 5.6% to $659 million in the fourth quarter, with core FFO per share up 5.9% and AFFO per share up 8.9% [31][32] - The year-end net debt to adjusted EBITDA ratio was 5.3 times, just below the targeted range of 5.5 to 6 times [29] Business Line Data and Key Metrics Changes - Same-store NOI growth was 4.7% year over year in Q4, driven by core revenue growth of 2.7% and a 1.5% reduction in core operating expenses [20] - The company achieved a renewal rate of 80% with same-store rental rate growth on renewals of 4.2% year over year [9] - The average length of stay for residents was approximately 38 months, with annual turnover at 22.6% [21] Market Data and Key Metrics Changes - The average cost of leasing a single-family home is nearly $1,100 a month cheaper than owning in the company's markets [16] - Same-store blended rent growth for Q4 was 2.3% year over year, with a negative 2.2% new lease rate growth [22] - Average occupancy rose to 97% in early 2025, with blended lease rate growth climbing to 3.5% [23] Company Strategy and Development Direction - The company is focused on enhancing scale and density within core markets while evaluating new markets with attractive growth profiles [13] - Invitation Homes aims to optimize its wholly-owned portfolio by recycling capital from older assets into newly constructed investments [11] - The company is exploring innovative structures for growth, including partnerships with builders and potential entry into new markets [80][82] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, noting early signs of improvement in market conditions [15] - The company anticipates same-store blended rent growth in the mid-threes for 2025, with average occupancy expected to be around 96.5% [24] - Management highlighted the importance of demographic trends, with 46 million American households leasing their primary residence, many of whom prefer single-family homes [16] Other Important Information - The company lost only two homes to recent wildfires in Los Angeles, demonstrating the resilience of its scattered portfolio [19] - Invitation Homes has a robust liquidity position of nearly $1.4 billion, providing flexibility for growth opportunities [29] Q&A Session Summary Question: Why is blended rent growth not expected to accelerate further despite recent improvements? - Management anticipates blended rent growth for 2025 in the mid-threes, taking a cautious approach due to supply pressures and expected occupancy impacts [39][41] Question: What are the current trends in new home deliveries and their impact on the business? - Management noted a moderation in supply pressures and expects improvements in new home deliveries, which may benefit the renewal business [46] Question: Has there been any impact from the recent wildfires in Southern California on guidance? - Management indicated no material impact on guidance, as occupancy remains high and demand is stable [52] Question: What is the outlook for G&A expenses and capital expenditures in 2025? - Management expects G&A expenses to be slightly lower in 2025, with a focus on efficiency gains [131]

Company Overview - Invitation Home (INVH) is headquartered in Dallas and operates in the Finance sector, with a stock price change of -1.25% since the beginning of the year [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 3.67%, which is slightly below the REIT and Equity Trust - Residential industry's yield of 3.77% and significantly above the S&P 500's yield of 1.54% [3] Dividend Performance - The current annualized dividend of Invitation Home is $1.16, reflecting a 2.7% increase from the previous year [4] - Over the last five years, the company has increased its dividend five times on a year-over-year basis, achieving an average annual increase of 18% [4] - The current payout ratio stands at 60%, indicating that the company pays out 60% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $1.93 per share, which represents a year-over-year earnings growth rate of 2.66% [5] Investment Considerations - Invitation Home is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is positioned as a strong dividend play, appealing to income investors who prioritize consistent cash flow [6][7]