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.

Core Insights - Invitation Homes (INVH) has updated its acquisition strategy and launched a developer lending program to enhance housing supply in high-demand markets [1][2][3]. Acquisition Strategy - From the beginning of Q2 2025 through June 2, 2025, the company has partnered with homebuilders to acquire over 300 newly constructed single-family homes, investing more than $100 million in markets such as Dallas, Denver, and Nashville [2][7]. - This strategy aims to increase housing supply in areas with significant demand, reflecting the company's commitment to growth [2][5]. Developer Lending Program - INVH has initiated a developer lending program, providing a $32.7 million loan to a homebuilder for the development of a community of 156 homes in Houston [3][7]. - The loan is secured by the development, allowing INVH the option to acquire the community once it stabilizes [3][7]. Management Commentary - Scott Eisen, the chief investment officer of INVH, emphasized the importance of partnering with homebuilders to finance new community developments, which are potential future acquisition targets [4]. - This approach is expected to create much-needed housing supply while delivering attractive returns [4]. Market Position - Invitation Homes is positioned to benefit from a high-quality portfolio of single-family rental units in key growth areas, including the Western United States, Sunbelt, and Florida [6]. - The demand for rental units in these high-growth markets is anticipated to positively impact the company's performance in the coming quarters [6]. - Over the past six months, INVH shares have increased by 1%, contrasting with a 4.7% decline in the broader industry [6].

Core Viewpoint - Invitation Home (INVH) shares have declined approximately 4.6% over the past month, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Recent estimates for Invitation Home have shown a downward trend over the past two months [2] Group 2: VGM Scores - Invitation Home currently holds an average Growth Score of C, a Momentum Score of B, and a Value Score of D, placing it in the bottom 40% for the value investment strategy, resulting in an aggregate VGM Score of C [3] Group 3: Outlook - Invitation Home has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return from the stock in the upcoming months [4]

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]

[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].