Core Insights - Invitation Homes Inc. reported first-quarter 2025 core funds from operations (FFO) per share of 48 cents, exceeding the Zacks Consensus Estimate of 47 cents and matching the prior-year quarter's figure [1] - Total revenues reached $674.5 million, surpassing the Zacks Consensus Estimate of $669.4 million and reflecting a 4.4% year-over-year improvement [2] Financial Performance - Same-store core revenues increased by 2.5%, while same-store core operating expenses remained flat year over year, leading to a 3.7% improvement in same-store net operating income (NOI) [3] - Same-store renewal rent grew by 5.2%, whereas same-store new lease rent declined by 0.1%, resulting in a same-store blended rent growth of 3.6% [3] - Average occupancy for same-store properties was 97.2%, down 60 basis points year over year [3] Portfolio Activity - In Q1 2025, the company acquired 577 wholly owned homes for approximately $194 million and 54 homes in joint ventures for around $19 million [4] - The company disposed of 454 wholly owned homes for gross proceeds of about $173 million and 16 homes in joint ventures for gross proceeds of $6 million during the same period [4] Balance Sheet - As of the end of Q1 2025, Invitation Homes had total liquidity of $1.36 billion, which includes unrestricted cash and undrawn capacity on its revolving credit facility [5] - The company's total secured and unsecured debt was $8.18 billion, with a Net Debt/TTM adjusted EBITDAre ratio of 5.3X [5] Credit Ratings - Following the quarter end, 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' [6] 2025 Guidance - Invitation Homes 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 [7] - The full-year guidance is based on anticipated same-store revenue growth of 1.75% to 3.25% and an increase in same-store expenses of 2.75% to 4.25%, with same-store NOI projected to rise by 1.00% to 3.00% [7] Industry Performance - Other residential REITs, such as Essex Property Trust Inc. and Equity Residential, also reported positive first-quarter results, indicating favorable growth trends in the sector [10][11]

Financial Data and Key Metrics Changes - The company reported a 3.5% year-over-year growth in Core FFO per share and a 4% increase in AFFO per share, indicating solid financial performance despite market volatility [8][22] - Same store portfolio achieved a 97.2% average occupancy rate and a 3.6% blended rent growth, alongside a 3.7% year-over-year increase in NOI [7][8] Business Line Data and Key Metrics Changes - Core revenue growth was 2.5%, contributing to the overall strong performance in the first quarter [13] - Renewal rents increased by 5.2%, while new lease rents remained steady, resulting in a blended rental rate growth of 3.6% for the quarter [16] Market Data and Key Metrics Changes - The Western U.S. markets showed strong occupancy and robust renewal and new lease rate growth, with some exceptions in Phoenix, Texas, and Florida due to ongoing supply pressures [17] - Preliminary results for April indicated a blended rent growth of 4%, with occupancy at 97.4%, slightly ahead of initial expectations [18] Company Strategy and Development Direction - The company emphasizes capital recycling and prudent portfolio growth, acquiring 577 homes for approximately $194 million while disposing of 454 homes [10] - The strategy includes partnering with homebuilders to develop nearly 2,000 additional homes, providing a reliable pipeline for future growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the single-family rental market, citing favorable demographics and a significant cost advantage of leasing over homeownership [9][12] - The company remains committed to long-term value creation and is optimistic about maintaining positive growth trajectories despite market uncertainties [12][22] Other Important Information - The company has a total available liquidity of nearly $1.4 billion and a net debt to adjusted EBITDA ratio of 5.3 times, with no debt maturing until 2027 [20][21] - Standard and Poor's reaffirmed the company's BBB flat credit rating and upgraded the outlook from stable to positive, reflecting the strength of the balance sheet [21] Q&A Session Summary Question: What are the dynamics driving the sequential decline in renewal rates? - Management indicated that the decline is typical as renewal rates peak in Q1 and moderate into the summer, aligning with historical trends [25][26] Question: How is the company scaling partnerships with homebuilders amid subdued commentary? - Management noted ongoing strong dialogue with homebuilders and a selective approach to acquiring homes, with an increase in opportunities to purchase homes at the end of the month [30][31] Question: Are current yield hurdles adequate in today's volatile environment? - Management confirmed that they are actively evaluating deal flow and maintaining a target yield on cost of 6%, while being cautious about capital allocation [34][35] Question: What is the outlook for bad debt and its potential for further reduction? - Management expressed cautious optimism about further reductions in bad debt, noting improvements across various markets [38][40] Question: How does the company view the potential impact of lower mortgage rates on move-outs? - Management reported that move-outs for home purchases remain low, indicating stability in the current leasing environment [113] Question: What is the state of build-to-rent competition and future deliveries? - Management indicated that while there is some supply coming in, overall deliveries are down significantly, and the company is absorbing well in key markets [70][72] Question: How is the company managing property management expenses? - Management explained that increases in property management expenses are primarily due to onboarding third-party management clients and related investments [92][93]

Financial Data and Key Metrics Changes - The company reported a 3.5% year-over-year growth in Core FFO per share and a 4% increase in AFFO per share, indicating solid financial performance despite market volatility [5][20] - Same store portfolio achieved a 97.2% average occupancy rate and a 3.7% year-over-year increase in NOI [4][11] Business Line Data and Key Metrics Changes - The same store core operating expenses remained flat year-over-year, aided by operational efficiencies and a 2% reduction in repair and maintenance expenses [12][61] - Renewal rents increased by 5.2% during Q1, while new lease rents held steady, resulting in a blended rental rate growth of 3.6% for the quarter [13][15] Market Data and Key Metrics Changes - The Western U.S. markets showed strong occupancy and robust renewal and new lease rate growth, with some exceptions in Phoenix, Texas, and Florida due to ongoing supply pressures [14][70] - Preliminary results for April indicated a blended rent growth of 4%, with occupancy at an average of 97.4% [15][110] Company Strategy and Development Direction - The company emphasizes capital recycling and prudent portfolio growth, acquiring 577 homes for approximately $194 million while disposing of 454 homes [7][9] - The strategy includes maintaining a disciplined capital allocation approach, targeting a 6% average yield on cost supported by economies of scale [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the single-family rental market, highlighting the demand driven by high homeownership costs and favorable demographics [6][10] - The company remains optimistic about maintaining positive trends in occupancy and rental rates, despite potential seasonal fluctuations [15][44] Other Important Information - The company has a total available liquidity of nearly $1.4 billion and a net debt to adjusted EBITDA ratio of 5.3 times, with no debt maturing until 2027 [18][19] - Standard and Poor's reaffirmed the company's BBB flat credit rating and upgraded the outlook from stable to positive [19] Q&A Session Summary Question: Renewal rate dynamics - Management noted that renewal rates typically peak in Q1 and may moderate into the summer, aligning with historical trends [25][26] Question: Homebuilder commentary and shadow supply concerns - The company maintains strong dialogue with homebuilders and continues to sift through opportunities, with no significant concerns about shadow supply impacting their business [29][30] Question: Yield hurdles in a volatile market - Management indicated that while they are seeing more deal flow, they remain focused on maintaining a 6% yield on cost and are actively managing their capital allocation [33][34] Question: Bad debt levels and future expectations - Management expressed cautious optimism about further reducing bad debt, noting improvements across various markets [38][40] Question: Turnover trends and guidance - The company is currently experiencing lower turnover than expected, which is contributing to strong occupancy, but anticipates some increase as they enter the peak leasing season [54][56] Question: Property management expenses - The increase in property management expenses is attributed to onboarding third-party management clients and related investments [92][93] Question: Impact of tariffs on costs - Management is monitoring the situation closely but believes their scale and procurement strategies will mitigate potential cost increases [96][99] Question: Expansion into new markets - The company is actively exploring opportunities to enter new markets while also focusing on scaling existing operations in high-growth areas [104][106] Question: Occupancy expectations for FY 2025 - Management reaffirmed their expectation for FY 2025 occupancy to end at approximately 96.5%, anticipating slight fluctuations due to seasonal trends [109][110] Question: Move-outs due to lower mortgage rates - Management reported no significant increase in move-outs for home purchases, indicating a stable demand for rental properties [113][114]

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].

Market Overview - The stock market has started the year poorly, with the S&P 500 down approximately 15% from its recent peak [1] NextEra Energy - NextEra Energy is a leading utility company, operating Florida Power & Light, the largest electric utility in the U.S., and is a major renewable energy producer [3] - U.S. electricity demand is projected to increase by 55% by 2040, driven by data centers, AI applications, onshoring of manufacturing, and electrification of transportation, providing NextEra with significant investment opportunities [4] - The company anticipates its adjusted earnings per share to grow at the high end of its 6% to 8% annual target range through 2027, with expected annual dividend growth of around 10% through at least next year [4] - Despite the expected surge in demand, NextEra's shares have fallen over 20% from their peak, increasing its dividend yield to 3.4% [5] Broadcom - Broadcom is experiencing rapid growth, with a 25% revenue increase in its fiscal 2025 first quarter and a 28% rise in free cash flow to $6 billion, largely driven by AI-related semiconductor sales, which surged by 77% [6] - The company expects a further 19% revenue growth in the second quarter, supporting continued dividend increases, having raised its payout by 11% last year [7] - Broadcom's shares have declined more than 30% from their recent peak, resulting in a valuation of approximately 25.7 times forward earnings, which is higher than the S&P 500's valuation of less than 20 times [8] Invitation Homes - Invitation Homes is a REIT focused on single-family rental properties, owning over 85,000 homes outright and managing nearly 17,700 properties for third parties [9] - The demand for rental housing remains strong due to a significant affordability gap, with rents being about $1,100 cheaper per month in its markets, maintaining high occupancy levels [10] - The company expects a modest 2% increase in net operating income this year, with long-term rent growth expected to accelerate once economic uncertainties subside [11][10] - Invitation Homes' stock price has decreased less than 10% amid a broader market decline, pushing its yield up to 3.5% [12]

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].