Invitation Homes(US:INVH)2025-10-29 20:17Financial Performance - Total revenues for Q3 2025 increased 4.2% year over year to $688 million, while property operating and maintenance costs rose 6.9% to $259 million[11]. - Net income available to common stockholders for Q3 2025 was $136 million, or $0.22 per diluted common share, a 43.5% increase compared to Q3 2024[11]. - Core FFO per share for Q3 2025 increased 0.4% to $0.47, and AFFO per share increased 0.1% to $0.38[11]. - Total revenues for Q3 2025 reached $688.2 million, a 4.0% increase from $660.3 million in Q3 2024[46]. - Net income for Q3 2025 was $137.2 million, compared to $95.6 million in Q3 2024, representing a 43.7% year-over-year increase[46]. - Rental revenues for Q3 2025 were $593.6 million, up from $575.5 million in Q3 2024, indicating a growth of 3.5%[46]. - Dividends declared per common share increased to $0.29 in Q3 2025, up from $0.28 in Q3 2024[46]. - FFO (Funds From Operations) for Q3 2025 was $273,691,000, up from $228,316,000 in Q3 2024, indicating a growth of 19.9%[48]. - Core FFO for Q3 2025 was $287,471,000, slightly higher than $286,513,000 in Q3 2024, reflecting a marginal increase of 0.3%[48]. - AFFO (Adjusted Funds From Operations) for Q3 2025 was $235,121,000, compared to $235,008,000 in Q3 2024, showing a stable performance[48]. Guidance and Projections - The company raised its full year 2025 guidance midpoints for Core FFO per share and AFFO per share by one cent each to $1.92 and $1.62, respectively[32]. - FY 2025 guidance for Core FFO per share is set at $1.90 to $1.94, with a midpoint of $1.92, reflecting a $0.01 increase from prior guidance[33]. - AFFO per share guidance is $1.60 to $1.64, with a midpoint of $1.62, also a $0.01 increase from previous guidance[33]. - Same Store Core Revenues growth is projected at 2.0% to 3.0%, maintaining a midpoint of 2.5%[33]. - Wholly owned acquisitions guidance has been raised to $750 million to $850 million, up from $600 million, reflecting $689 million in year-to-date activity[33]. Acquisitions and Dispositions - Acquisitions totaled 749 homes for approximately $260 million, while dispositions totaled 316 homes for approximately $122 million in Q3 2025[25]. - Total acquisitions in Q3 2025 included 526 homes with an average estimated cost basis of $340,002 per home[94]. - Total dispositions in Q3 2025 included 292 homes with an average sales price of $382,065 per home[94]. - The expected acquisition pipeline as of September 30, 2025, includes 1,002 new homes, with estimated deliveries of 264 homes in Q4 2025 and 550 homes in 2026[99]. - The average estimated cost basis for homes in the acquisition pipeline is $360,000[99]. Debt and Liquidity - As of September 30, 2025, the company had $1,905 million in available liquidity and total indebtedness of $8,313 million[29]. - The total debt as of September 30, 2025, was $8,313,398,000, with a weighted average interest rate of 3.9%[53]. - The net debt to TTM (Trailing Twelve Months) Adjusted EBITDAre ratio was 5.2x as of September 30, 2025[53]. - The total leverage ratio was 28.9%, well below the maximum requirement of 60%[53]. - The company reported a total debt per balance sheet of $8,230,284 as of September 30, 2025[165]. Occupancy and Rental Rates - Same Store Average Occupancy was 96.5%, reflecting a 60 basis point decrease year over year[11]. - Average monthly rent for Q3 2025 was $2,461, reflecting a rental rate growth of 3.0% on a blended basis[69]. - The same store total for Q3 2025 shows an average monthly rent of $2,461, a year-over-year increase of 2.5%, with an average occupancy rate of 96.5%[75]. - In Southern California, the average monthly rent increased by 3.5% to $3,213, with an occupancy rate of 98.0%[75]. - The average rent per square foot across the total portfolio is $1.30, contributing to 100% of the revenue[71]. Operating Expenses - Property operating and maintenance expenses for Q3 2025 totaled $259,037,000, up from $244,278,000 in Q2 2025[155]. - Core operating expenses for the total portfolio in Q3 2025 were $212,152, a 6.2% increase from $199,816 in Q3 2024[63]. - Total recurring operating expenses, net for Q3 2025 amounted to $42,610, an increase from $40,272 in Q3 2024[89]. - Total cost to maintain, net for Q3 2025 was $89,624, up from $86,070 in Q3 2024, with a per home cost of $1,160[89]. - Adjusted property management expense for Q3 2025 was $35,511,000, an increase of 7.4% from $33,069,000 in Q3 2024[92]. Ratings and Financial Metrics - Fitch Ratings assigned a credit rating of BBB+ with a stable outlook, while S&P Global Ratings rated it BBB with a positive outlook[53]. - The unsecured interest coverage ratio is calculated as the trailing four quarters' unencumbered NOI divided by total unsecured interest expense, indicating the company's ability to cover interest obligations[140]. - The aggregate debt ratio represents total debt divided by total assets, including the undepreciated book value of real estate assets[146]. - The secured debt ratio is defined as secured debt divided by total assets, providing insight into the company's leverage[146]. - The debt service ratio is calculated as consolidated income available for debt service divided by the annual service charge for the trailing four quarters, indicating the company's ability to meet debt obligations[148].