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 Insights - Invitation Home (INVH) reported revenue of $681.4 million for Q2 2025, a year-over-year increase of 4.3% and exceeding the Zacks Consensus Estimate of $676.86 million by 0.67% [1] - The company achieved an EPS of $0.48, significantly higher than $0.12 from the previous year, aligning with the consensus estimate [1] - The stock has underperformed with a return of -2.4% over the past month compared to the S&P 500's +3.4% [3] Revenue Breakdown - Management fee revenues reached $22.29 million, surpassing the average estimate of $21.65 million by analysts, reflecting a year-over-year increase of 39.6% [4] - Rental revenues were reported at $592.51 million, below the average estimate of $654.09 million, but still showing a year-over-year growth of 2.7% [4] Earnings Performance - The diluted net earnings per share were reported at $0.23, exceeding the average estimate of $0.19 from analysts [4]

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].

Core Insights - Real estate investment trusts (REITs) provide a passive income opportunity through professionally managed rental properties, distributing cash flow to investors via dividends [2][14] Group 1: Invitation Homes - Invitation Homes (INVH) manages over 110,000 homes across 16 housing markets, offering diversification that reduces risk and supports steady income for dividend payments [5][7] - The REIT pays quarterly dividends of $0.29 per share, translating to an annual payout of $1.16 and a dividend yield of approximately 3.5% [6] - The company retains over 70% of its cash flow for reinvestment in new rental properties, including recent partnerships to acquire over 300 homes for more than $100 million [7][8] Group 2: Realty Income - Realty Income (O) owns a diversified portfolio of 15,600 properties across the U.S. and Europe, generating stable cash flow through net leases with major tenants [10][13] - The REIT pays monthly dividends of $0.269 per share, amounting to an annual payout of $3.228 and a dividend yield exceeding 5.5% [11] - Realty Income has a strong track record of increasing dividends, having raised its payment 131 times since its public listing in 1994, with a compound annual growth rate of 4.2% over the past 30 years [12][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]

Financial Performance & Market Trends - May QTD Same Store new lease rate growth was 7.4% compared to 5.7% in 1Q23[7] - May QTD Same Store renewal rate growth was 6.9% compared to 8.0% in 1Q23[7] - May QTD Same Store blended rate growth was 7.0% compared to 7.3% in 1Q23[7] - May QTD Same Store average occupancy was 97.7% compared to 97.8% in 1Q23[7] - New residents have an average annual income of over $134,000 and an income to rent ratio of 5.1x as of 1Q23[11] - Average annual SS-NOI growth from 2017 to 2022 was 6.6%[24] Portfolio & Strategy - Over 95% of revenue comes from the Western U S, Sunbelt, and Florida[13, 24] - The company has over $1.3 billion of liquidity as of March 31, 2023[11] - 83.1% of homes are unencumbered[11] - The company manages 86,580 homes[35]

Group 1 - Invitation Homes Inc. (NYSE: INVH) has underperformed over the past year, with a 5% decline in share value despite the resilience of the single-family rental (SFR) market compared to multifamily rentals [1] - The SFR market remains relatively stable, indicating potential opportunities for companies like INVH to capitalize on this trend [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories in achieving outsized returns with a favorable risk/reward profile [1]

Summary of Invitation Homes Conference Call Company Overview - **Company**: Invitation Homes - **Industry**: Residential Real Estate, specifically focused on single-family rentals Key Points and Arguments Market Performance - **Occupancy Rates**: Currently at low 97% with blended rates in the low 4% range, indicating a strong position heading into peak leasing season [3][6][20] - **Renewals**: Strong renewal business, accounting for 75% of leases, with rates above 4% [4][6] - **New Leases**: Steady performance, although some markets like Dallas, Tampa, and Phoenix are facing challenges due to new supply [4][5] Supply Dynamics - **Supply Pressure**: Deliveries in the Build-to-Rent (BTR) segment are dramatically slowing, which is expected to alleviate supply pressure in the coming quarters [6][7] - **Market Competition**: Competitive environment with some markets remaining flat year-over-year, while others like Denver and Southern California show strength [5][6] Customer Demographics - **Customer Segments**: Three main customer types identified: those renting by choice, those in transition, and those renting out of necessity due to credit issues [12][13][14] - **Affordability**: Renting is approximately $1,100 more affordable than buying in all markets, making it an attractive option for families [15][16] Operational Efficiency - **Days to Re-Resident**: Currently tracking in line with pre-pandemic levels, with a focus on reducing the time to lease homes [21][22] - **Revenue Management**: Utilizes data and technology to optimize pricing and occupancy, with a focus on maintaining a balance between occupancy and rental rates [25][26] Strategic Initiatives - **Developer Lending Program**: A new initiative aimed at providing capital to builders, with a focus on projects that align with Invitation Homes' long-term acquisition strategy [44][46][49] - **Third-Party Management**: Successfully managing 20,000 homes, creating efficiencies and expanding into new markets [58][59] Financial Outlook - **Acquisition Strategy**: Plans to fund growth through asset dispositions and excess operating cash flow, with a focus on capital-light growth [60][61] - **Market Conditions**: Anticipates 3% to 5% rent growth in a normalized market, with stable expense growth expected [38][39] Long-Term Vision - **Customer Retention**: Average length of stay is over 38 months, indicating strong customer loyalty [33] - **Market Positioning**: Focus on acquiring homes in areas with existing operations to leverage local market knowledge [40][41] Additional Important Insights - **Shadow Supply**: Rising home inventory levels are not significantly impacting Invitation Homes, as the company focuses on the rental market where ownership costs are rising [30][31] - **Market Trends**: The company is optimistic about the long-term outlook, citing historical trends where rent growth follows home price appreciation [36][37] This summary encapsulates the key insights and strategic directions discussed during the Invitation Homes conference call, highlighting the company's strong market position and proactive strategies in the residential rental sector.