Invitation Homes(US:INVH)2025-07-31 16:39PART I — Financial Information Item 1. Financial Statements This section presents Invitation Homes Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025, including balance sheets, operations, cash flows, and detailed notes Condensed Consolidated Balance Sheets The balance sheet shows a slight decrease in total assets to $18.66 billion as of June 30, 2025, from $18.70 billion at year-end 2024, with total liabilities increasing and total equity decreasing over the same period Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $18,662,005 | $18,700,951 | | Investments in single-family residential properties, net | $17,361,929 | $17,212,126 | | Cash and cash equivalents | $65,112 | $174,491 | | Total liabilities | $8,956,709 | $8,908,442 | | Secured debt, net | $1,382,965 | $1,385,573 | | Unsecured notes, net | $3,803,985 | $3,800,688 | | Term loan facilities, net | $2,447,555 | $2,446,041 | | Revolving facility | $540,000 | $570,000 | | Total equity | $9,705,296 | $9,792,509 | Condensed Consolidated Statements of Operations For Q2 2025, total revenues increased to $681.4 million, and net income attributable to common stockholders significantly rose to $140.9 million ($0.23 per diluted share), with similar growth for the six-month period Statement of Operations Highlights (in thousands, except per share data) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Total revenues | $681,401 | $653,451 | $1,355,880 | $1,299,490 | | Rental revenues and other property income | $659,107 | $637,475 | $1,312,178 | $1,269,572 | | Total expenses | $579,600 | $565,297 | $1,155,389 | $1,119,674 | | Net income attributable to common stockholders | $140,887 | $73,188 | $306,632 | $215,538 | | Net income per common share — diluted | $0.23 | $0.12 | $0.50 | $0.35 | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash from operating activities increased, while net cash used in investing activities significantly rose due to higher property acquisitions, and net cash used in financing activities was primarily for dividends and revolving facility repayments Cash Flow Summary for the Six Months Ended June 30 (in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $682,978 | $635,382 | | Net cash used in investing activities | ($416,915) | ($200,200) | | Acquisition of single-family residential properties | ($510,836) | ($244,337) | | Proceeds from sale of single-family residential properties | $267,692 | $218,751 | | Net cash used in financing activities | ($402,032) | ($369,488) | | Payment of dividends and dividend equivalents | ($356,806) | ($344,938) | | Change in cash, cash equivalents, and restricted cash | ($135,969) | $65,694 | Notes to Condensed Consolidated Financial Statements The notes provide detailed information supporting the financial statements, covering the company's property portfolio, accounting policies, debt structure, and significant commitments - As of June 30, 2025, the company wholly owns 85,905 homes, jointly owns 7,698 homes, and provides third-party management for an additional 16,785 homes30 - The company has entered into binding purchase agreements to acquire 1,286 homes over the next three years, with remaining commitments of approximately $370 million as of June 30, 2025175 Debt Summary as of June 30, 2025 (in thousands) | Debt Type | Outstanding Principal Balance | Net Carrying Value | | :--- | :--- | :--- | | Secured Debt | $1,387,695 | $1,382,965 | | Unsecured Notes | $3,827,937 | $3,803,985 | | Term Loan Facilities | $2,475,000 | $2,447,555 | | Revolving Facility | $540,000 | $540,000 | - On June 12, 2025, the board declared a dividend of $0.29 per share, paid on July 18, 2025, totaling $178.0 million, accrued in liabilities as of June 30, 2025139182 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial performance, revenue growth, macroeconomic impacts, operational factors, liquidity, and non-GAAP measure reconciliations Our Portfolio As of June 30, 2025, the company's portfolio included 85,905 wholly-owned homes with 95.6% average occupancy and $2,434 average monthly rent, with the Western US and Florida markets being the largest revenue contributors Portfolio Summary as of Q2 2025 | Metric | Total Portfolio | Same Store Portfolio | | :--- | :--- | :--- | | Number of Homes | 85,905 | 77,721 | | Average Occupancy | 95.6% | 97.2% | | Average Monthly Rent | $2,434 | $2,445 | - The Western US and Florida regions combined represent 71.3% of the company's rental revenues and other property income for the three months ended June 30, 2025201205 Results of Operations In Q2 2025, total revenues grew 4.3% year-over-year to $681.4 million, driven by increased rental income and management fees, leading to a 92.5% rise in net income Q2 2025 vs Q2 2024 Performance (in thousands) | | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $681,401 | $653,451 | $27,950 | 4.3% | | Rental revenues | $659,107 | $637,475 | $21,632 | 3.4% | | Management fee revenues | $22,294 | $15,976 | $6,318 | 39.5% | | Net income | $141,367 | $73,431 | $67,936 | 92.5% | H1 2025 vs H1 2024 Performance (in thousands) | | H1 2025 | H1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $1,355,880 | $1,299,490 | $56,390 | 4.3% | | Net income | $307,649 | $216,217 | $91,432 | 42.3% | Total Portfolio Rental Rate Growth (Q2 2025 vs Q2 2024) | Lease Type | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Renewal Lease Growth | 4.6% | 5.6% | | New Lease Growth | 2.0% | 3.5% | Liquidity and Capital Resources As of June 30, 2025, the company maintained strong liquidity with $65.1 million in unrestricted cash and $1.21 billion available on its revolving facility, with no debt maturing until June 2027 and a long-term target net debt to Adjusted EBITDAre ratio of 5.5 to 6.0 times - Liquidity sources as of June 30, 2025 include $65.1 million in unrestricted cash and $1,210.0 million undrawn on the Revolving Facility270 - The company has no debt reaching final maturity until June 2027270 - The long-term debt strategy targets a net debt to trailing twelve months Adjusted EBITDAre ratio of approximately 5.5 to 6.0 times278 Contractual Obligations Summary as of June 30, 2025 (in thousands) | Obligation Type | Total | Remainder of 2025 | 2026-2027 | 2028-2029 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Debt & Leases | $9,466,944 | $184,224 | $1,427,886 | $3,522,974 | $4,331,860 | | Purchase commitments | $404,433 | $224,579 | $179,854 | $— | $— | | Total | $10,456,944 | $395,197 | $1,822,425 | $3,603,791 | $4,635,531 | Non-GAAP Measures This section provides reconciliations of GAAP net income to non-GAAP measures, with Q2 2025 Core FFO at $296.7 million ($0.48/share) and AFFO at $253.4 million ($0.41/share), both showing modest growth Non-GAAP Performance Measures (in thousands, except per share data) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Adjusted EBITDAre | $390,876 | $376,319 | | NOI (Same Store) | $389,680 | $380,140 | | Core FFO | $296,694 | $291,825 | | Adjusted FFO (AFFO) | $253,422 | $245,190 | | Core FFO per share | $0.48 | $0.47 | | AFFO per share | $0.41 | $0.40 | Quantitative and Qualitative Disclosures About Market Risk The company's primary market risks are interest rate fluctuations, with 66.3% of variable-rate debt effectively fixed, and seasonality impacting operating costs - The primary market risks are identified as interest rate risk and seasonality321 - As of June 30, 2025, the company had $3.015 billion in outstanding variable-rate debt, of which 66.3% was effectively fixed through interest rate swaps323 - A 100 basis point increase or decrease in the SOFR interest rate would result in an estimated $10.2 million change in annual interest expense323 - The business experiences seasonality, with higher resident move-outs and turnover costs during the summer months328 Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective329 - No material changes to internal control over financial reporting occurred during the quarter330 PART II — Other Information Legal Proceedings The company is not subject to any material litigation, nor is any material litigation currently threatened, beyond routine matters in the ordinary course of business - The company is not subject to any material litigation outside of routine proceedings332 Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K333 Other Part II Items This section confirms no unregistered sales of equity securities, no defaults upon senior securities, no mine safety disclosures required, and no other information to report for the quarter - Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), and Item 5 (Other Information) are all reported as "None"334335337 - Item 4 (Mine Safety Disclosures) is reported as "Not applicable"336 Exhibits This section lists the exhibits filed with the Form 10-Q, including corporate documents, an amendment to a term loan agreement, and CEO/CFO certifications - Key exhibits filed include an amendment to the Term Loan Agreement dated April 28, 2025, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906340