INVH

It has been about a month since the last earnings report for Invitation Home (INVH). Shares have lost about 1.5% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Invitation Home due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Invitation Homes reported second-quarter 2026 core FFO per share of 51 cents, beating the Zacks Consensus Estimate of 49 cents. The figure increased 5% from a year earlier. The results benefited from NOI growth, higher lease rates, the ResiBuilt acquisition and $49.46 million of homebuilding revenues. Same-store NOI advanced 1.5%. The company raised its 2026 core FFO per share guidance. Total revenues improved 9.7% year over year to $747.55 million and surpassed the consensus mark by 4.7%. Rental revenues increased 1.8% year over year to $602.99 million, while other property income climbed 13.2% to $75.37 million. These gains offset an 11.5% decline in management fee revenues to $19.74 million. Homebuilding activities added a new source of growth following the ResiBuilt acquisition in January 2026. However, the associated cost of sales totaled $42.22 million, indicating that the business contributed less to profitability than its top-line impact alone suggests. The same-store portfolio comprised 77,326 homes, representing 90.4% of the total portfolio. Core revenues grew 1.6%, primarily driven by a 2% increase in the average monthly rent, partly offset by a 20-basis-point decline in average occupancy. Average occupancy was 97.1%, while bad debt remained stable at 0.6% of gross rental revenues. The turnover rate improved to 5.7% from 6.2%, supporting leasing stability despite slower rent growth compared with the prior-year quarter. Renewal rent growth was 3.3%, down from 4.7% a year ago. New lease rent growth moderated to 1.1% from 2.1%, resulting in blended rent growth of 2.7% compared with 4% in the prior-year period. Still, the new lease result marked a notable sequential improvement from the 3% decline recorded in the first quarter. Average monthly rent reached $2,480, up from $2,431 a year earlier and $2,471 in the preceding quarter. The company sold 657 wholly owned homes for gross proceeds of approximately $309 million and acquired 196 homes for about $74 million. It generated roughly $234 million in net disposition proceeds, which supported share repurchases and debt reduction. Invitation Homes repurchased nearly 3.5 million shares during the quarter for approximately $100 million. Since December 2025, the company has bought back 22.8 million shares for $600 million. It retained $400 million under its current repurchase authorization at quarter-end. Invitation Homes ended June with $1.55 billion of available liquidity. Total indebtedness was $8.59 billion, of which 83.8% was unsecured, and 92.4% was fixed-rate or swapped to fixed-rate debt. Net debt to trailing 12-month adjusted EBITDAre was 5.4X, below the targeted range of 5.5X-6X. Subsequent to quarter-end, the company completed a $500 million offering of 4.95% senior notes due in 2032. The proceeds were used to reduce a secured debt obligation maturing in June 2027, extending the weighted average debt maturity and reducing secured borrowings. Invitation Homes raised its full-year 2026 core FFO guidance to $1.92-$1.98 per share, lifting the midpoint by a penny to $1.95. The company narrowed its same-store core revenue growth outlook to 1.5%-2.3%, and its NOI growth range to 0.4%-1.9%, leaving both midpoints unchanged. It raised its wholly owned disposition target to $750-$950 million from a prior midpoint of $550 million, reflecting favorable private-market valuations. It turns out, estimates review have trended downward during the past month. At this time, Invitation Home has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Invitation Home has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invitation Home (INVH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 11:00 a.m. ET Senior Vice President of Investor Relations - Scott McLaughlin President and Chief Executive Officer - Dallas Tanner Chief Operating Officer - Timothy J. Lobner Chief Financial Officer - Jonathan S. Olsen Chief Investment Officer - Scott G. Eisen Operator: Welcome to the Invitation Homes Second Quarter 2026 Earnings Conference Call. All participants are in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key. As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Scott McLaughlin, Senior Vice President of Investor Relations. Please go ahead. Scott McLaughlin: Thank you, operator, and good morning. Joining me today from Invitation Homes are Dallas Tanner, our president and chief executive officer Timothy J. Lobner, our chief operating officer Jonathan S. Olsen, our chief financial officer and Scott G. Eisen, our Chief Investment Officer. Following our prepared remarks, we will open the line for questions from our covering sell-side analysts. During today's call, we may reference our second quarter 2026 earnings release and supplemental information. We issued this document yesterday afternoon, after the market closed and it is available on the Investor Relations section of our website at www.invh.com. Certain-statements we make during this call may include forward-looking statements relating to the future performance of our business, financial results, liquidity and capital resources, and other non-historical statements. Which are subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated. We described some of these risks and uncertainties in our 2025 Annual Report on Form 10-K and other filings we make with the SEC from time to time. Except to the extent otherwise required by law, we do not update forward-looking statements. Expressly disclaim any obligation to do so. We may also discuss certain non-GAAP financial measures during the call. You can find additional information regarding these non-GAAP measures including reconciliations to the most comparable GAAP measures, in yesterday's earnings release. With that, I will turn the call over to Dallas Tanner. Go ahead, Dallas. Dallas Tanner: Thanks, Scott, and good morning, everyone. It has been a busy peak season for us, before getting into the quarter, I want to thank our residents for the trust they keep placing in us. And our field teams for how they have handled the pace. Together, we delivered a strong second quarter. Average occupancy held above 97%. New lease rate growth accelerated for the sixth month in a row and we grew core FFO per share by 5%, and AFFO per share by just under 6%. Timothy and John will get into the details. It is a great foundation heading into the second half of the year. I will kick off my comments by talking about the 21st Century ROAD to Housing Act. The law was enacted earlier this month providing greater clarity for our business and the broader housing industry. Among other things, the act includes some meaningful provisions aimed at speeding up and encouraging new construction. That is a goal we fully support. Since we have long known that better housing affordability is achieved by increasing new supply. In fact, that has been precisely our approach at Invitation Homes. Growing through new construction and homebuilder partnerships. We are pleased that the law lets us keep doing what we do best. Offering a valuable housing solution to the millions of Americans who choose to lease. While helping deliver the new supply this country needs. And that commitment, goes well beyond supply. For our residents, that means continuing free positive credit reporting to help them build credit simply by paying their rent on time. For policymakers, it means staying closely engaged with Treasury and HUD and others as these new regulatory guidance takes further shape. Beyond the legislative backdrop, demand for our homes remains healthy. According to the latest data from John Burns, on average, it is over $1,000 per month cheaper to lease today than to own a similar house in our markets. Based on our average resident tenure of just now over 40 months, that adds up to more than $40,000 in total savings for a typical family. That is a compelling value proposition that, along with favorable demographics and the convenience of leasing, will continue to support our demand. Turning now to capital allocation. The story during the second quarter was similar to the first quarter. Share repurchases remained among the most attractive uses of our capital. During the second quarter, we bought back another $100 million of stock which brings us to $600 million in stock repurchases since December at an average price of a little over $26 per share. These share repurchases have been funded in large part by home sales priced well above where the public market is valuing our assets. We are also starting to see early signs of a thaw on the acquisition side. Deal flow has been relatively stagnant over the first six months of 2026 because of the legislative uncertainty. But with the ROAD to Housing Act now settled, more sellers are coming to market. Including some attractive smaller portfolios. It is still early, but encouraging, since it gives us another lever for accretive capital deployment. Similarly, we see opportunities in our development and our lending channels. ResiBuilt's pipeline has reaccelerated following some disruption earlier this year when the bill was still in flux. And on the lending side, construction loan commitments including some still in diligence, now total just under $350 million. With about 10% of that funded so far. As a reminder, these loans typically yield in the high single digits and give us the opportunity to purchase the community once it is built. Zooming out, at our Investor Day last November, we talked about building the best-run SFR platform in the country. That is disciplined on cost and capital and also focused on the resident experience. That discipline has been on full display in three ways so far this year. First, capital allocation. Selling homes at a premium, redeploying that capital into accretive opportunities. Second, growth. Supporting our platform through the acquisition of ResiBuilt and the expansion of our construction lending business. And third, resident satisfaction. Reflected in the renewal and retention numbers Timothy will walk through shortly. In short, we are doing exactly what we said we were going to do. Combined with what Timothy and John are about to cover, our first half performance gave us confidence to raise our full-year guidance. I will let John cover the specifics here. But the takeaway is that Invitation Homes continues to generate strong and stable cash flows. Selling homes at a premium to where the market is valuing our assets and recycling that capital accretively create value for our shareholders. Timothy, over to you. Timothy J. Lobner: Thanks, Dallas, and good morning, everyone. I will start with the headline. New lease rate growth accelerated every month from January to June. Capping off peak leasing season on a high note. Our second quarter Same Store rental rate was approximately 77%, and average length of stay for our residents remained over 40 months. These data points reflect a high level of resident satisfaction with both our homes and our service. Turning now to our second quarter Same Store results, NOI growth was 1.5% year-over-year, driven by 1.6% core revenue growth. Core operating expense growth of just 1.9%. I will touch on a few more details behind each of those items. On the revenue side, renewal rent growth rose through the quarter. It rose from just over 3% in April and May to 3.7% in June. Averaging 3.3% for the second quarter. Second quarter new lease rent growth was 1.1%. That resulted in second quarter blended lease rent growth of 2.7%. Turnover improved 50 basis points year-over-year to 5.7% and average occupancy for the quarter landed at 97.1%. Both strong results for the summer season. On the expense side, the best news is on the controllables, where expenses we manage on a day-to-day basis were down 1% year-over-year. it is a really good reflection of how our teams are running the business. Fixed costs, including property taxes and insurance, increased by only 3.5% year-over-year. We are pleased to see both controllable and fixed expenses tracking in line with our expectations year-to-date. Supply backdrop across our markets is telling a similar story. Build to rent deliveries have continued to decline, And while SFR listings remain elevated, the pace of new supply growth has slowed sharply since the start of this year. In addition, according to John Burns, markets that were the most oversupplied are now seeing the sharpest drops in unsold inventory of new homes. Still a bit of supply to work through in some markets, but the trend has clearly been moving in the right direction. We will continue to keep a close eye on this as we move through late summer and into the fall. This slower supply growth, the steady demand that Dallas described, and strong execution from our teams are all showing up directly in our numbers. New lease rate growth picked up every month through June, before easing, as we would expect for late summer, to 1.2% in July. Renewals followed their own path, staying in the low-3% range for April and May, before accelerating to 3.7% in June, and 4.3% in July. That brings our preliminary blended lease rate growth for July to 3.4%. While average occupancy for July was 96.5%, reflecting normal seasonality from summer move outs. Taken together, this was a strong operating quarter. We headed into the back half of the year with real momentum on renewals, well-managed expenses, healthy demand, and improving supply backdrop. Proud of how our teams have shown up for our residents this year, and how their efforts have made results like these possible. John, I will hand it over to you. Jonathan S. Olsen: Thanks, Timothy. Today, I will cover our second quarter financial results, capital allocation activity, the balance sheet, and our updated guidance. Starting with our results. Second quarter core FFO per share was $0.51, up 5% year-over-year and AFFO per share was $0.44, up nearly 6% year-over-year. On the capital side, during the second quarter, we sold 657 wholly owned homes primarily to end-users, for gross proceeds of about $309 million. And we bought 196 homes, all from our homebuilder partners for about $74 million. Combined with our first quarter activity, this pace of dispositions has run well ahead of our original expectations which is why we increased our full-year disposition guidance for wholly owned homes by $300 million at the midpoint to $850 million. Our acquisitions guidance remains unchanged, with midpoints of $250 million for wholly owned homes from our homebuilder partners, and $100 million through our joint ventures. We also deployed another $100 million for stock repurchases in the second quarter. For a total of $600 million of share repurchases since we started the program late last year. Since that time, we have repurchased approximately 22.8 million shares at an average price of $26.30 per share. For reference, this average repurchase price represents an implied value of just over $270,000 per wholly owned home. That is a significant discount compared to our year-to-date actual average sale price of $450,000 per home. We used proceeds from this quarter's asset sales along with free cash flow to reduce our revolver balance from $560 million as of March 31 to $280 million as of June 30. As a result, we ended the second quarter with a net debt to trailing 12-month adjusted EBITDA ratio of 5.4x. Or just below our 5.5x to 6.0x target range. Turning to the balance sheet more broadly, it remains in great shape. We ended the quarter with over $1.5 billion of available liquidity. Substantially all of our debt is at fixed rates or swapped to fixed rates; approximately 90% of our wholly owned homes were unencumbered. We also took steps to strengthen that balance sheet profile even further, taking advantage of favorable market conditions earlier this month to issue $500 million of senior notes maturing in 2032 at a 4.95% coupon. We used the net proceeds to prepay approximately half of our 2017-1 securitization, which had a $988 million balance outstanding as of June 30, that matures next summer. Because the offering and prepayment both occurred in July, their impact is not reflected in our June 30 financial statements or supplemental schedules. We have provided the pro forma impact on certain metrics in a footnote to Supplemental Schedules 2B and 2C. Reflecting on our year-to-date operating results, and the benefit of this year's stock buyback activity, we raised full-year core FFO and AFFO per share guidance for the quarter, with midpoints up a penny each to $1.95 and $1.65, respectively. Alongside the disposition guidance increase I mentioned earlier. With the first half of the year now behind us, we also narrowed our Same Store core revenue and NOI growth guidance ranges around unchanged midpoints. Reflecting improved visibility into the balance of the year. All told, we have a strong balance sheet, good operating momentum, multiple ways to keep creating value for our shareholders. This concludes our prepared remarks. Operator, please open the line for questions. Operator: Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press *1 on your telephone keypad. And if you would like to withdraw your question, please press the # key. Just a reminder to limit yourself to one question only. If you have additional questions, please rejoin the queue. Your first question comes from the line of Eric Wolfe with Citi. Please go ahead. Eric Wolfe: Hey. Thanks. You mentioned that you were starting to see some smaller portfolios come to market. Could you talk about how you think those portfolios price from a cap rate and unlevered IRR perspective? Assuming you take part in any of these deals, how would you fund them? Scott G. Eisen: Thanks for the question. This is Scott. Yeah. In terms of the right now, we are not seeing any large transactions at this point. We have probably seen some smaller portfolios and you know, sub-$100 million, maybe slightly bigger than the $100 million size range. I think It is too early to really talk about price guidance and returns on it. We really have not seen a lot of transaction activity. But I would say that, post-ROAD to Housing Act, if for the first six months of the year, things were really quiet just because people were waiting to see where the legislation turned out. I think now that the act has been passed, I think we are seeing some capital start to, you know, open up again and start to test the waters and see where the market is. So It is really too soon to say exactly where we think transactions are going to price. But I would definitely say that activity has sort of picked up since the legislation got passed. Operator: And your next question comes from the line of Jamie Feldman with Wells Fargo. Please go ahead. Connor Mitchell: Hi. Thank you. You have Connor on for Jamie. Could you provide an update on July new, renewal, and blended lease rate growth? And as we think about the second half of this year, what are you assuming for those metrics and especially with the seasonal moderation in new lease? Particularly given the easier comps and more first half weighted expiration schedule? Timothy J. Lobner: Hey, Connor, great question. Thank you. This is Timothy speaking. As prepared or as discussed in our prepared remarks, let me run through what we had in July. July, our renewals were at 4.3%, really happy with that. That accelerated out of our Q2 number, which was 3.3%. On the new lease side, we are at 1.2%. That is coming off of 1.8% in June. We saw a nice acceleration through Q2. And then on the blended side that was 3.4%. And as I shared also in the prepared remarks, we were really pleased with how the year has progressed and continues to progress. Every month on the blended side, we have seen a favorable upward movement. And, look, as you think about the back half of the year, as we shared at several of the investor conferences, there is a regular cadence to how the industry moves. Right? You know, let's just talk and start with occupancy because that also informs us on how we go about our lease rate. Occupancy, like you start the year and you continue to grow in the peak season. During peak season, you see a lot of households move out. Typical time for families to move out of houses. So you see occupancy moderate a bit. And then towards the very end of the year, you see it pick up, and then that puts us back into the new year. As it relates to rent growth, let me break it down. Obviously, the blend is really just a reflection, like a 75% reflection of the renewal side of the house and about a 25% reflection of the new lease. On new lease, you saw our numbers from Q1. We started out negative. That picks up as you go through the year. That positive number held out. We saw it go, and actually, we plateaued in June which was really strong. It is later in the year than we saw in 2025. And we expect that to moderate through the balance of the year. On the renewal side, That is probably the most consistent part of our business. We typically see over the course of the year, it varies between 3.5% to 4.5%. which, again, is really important because that 75% to 80% of the book of business. So That is how we expect to see it, for the balance of the year. And we are really liking how we have seen the year shape up so far. And as for August, obviously, do not know what new lease growth will be for August, but renewals in August are shaping up much like July. So we are really happy with how the portfolio is performing and how the teams are executing. Thank you. Operator: Your next question comes from the line of Steve Sakwa with Evercore ISI. Please go ahead. Steve Sakwa: Yeah. Thanks. I appreciate all the comments on the revenue side. Maybe just touching on expenses, which I think you know, moderated a bit from Q1 to Q2. Maybe just what are some of the puts and takes as you look in the back half of the year? And if you think about kind of your overall 2026 number and we sort of start to think about next year, I guess, what are the puts and takes we should be thinking about to next year's expense growth? Timothy J. Lobner: Yes, Steve. I think the big one is obviously always property tax. We have probably three to four weeks before we start to get preliminary views on value and then, you know, maybe another 30 days to a month and a half before we start to get actual bills in the door. So That is always a big consideration. But I think what is what is really striking to me is how effective the focus on cost controls around the controllable side of the house has been. Think the team has made really thoughtful decisions about how they approach the service side of the house, I think we are really pleased that, you know, total turn costs are looking quite favorable. So as I think about puts and takes, I mean, to me, the big question mark at this point in the year is always property tax. I think vis-à-vis the rest of the expense line items, we are really happy with what we are seeing, and we are really pleased with where we are in the year, recognizing there is still a good bit of the year yet to go. Operator: Your next question comes from Jana Galan with Bank of America. Please go ahead. Jana Galan: John, on the guidance increase, can you speak to any one-timers that may have benefited the second quarter or any offsets you expect in the second half of the year that caused the FFO run rate to come down? Jonathan S. Olsen: I think with respect to the guide, I guess I would point out a couple of things. As I just said, firstly, we have half a year to go. And the second half of the year presents potentially higher degree of execution risk, just based on the fact that, as Timothy outlined, this is normally the seasonal period where you see turnover tick up a little bit. The quantum of homes that we are taking back that we need to get turned and back out into the market and re-leased is something we are going to be really focused on. As we think about defending occupancy in the second half of the year. Secondly, as we have talked about a lot of times, higher turnover in the second half of the year has the potential to impact both the revenue and expense side of the P&L. And obviously, any turnover we experience in the second half does create some degree of execution risk, given that this supply backdrop, while improving, remains elevated. So we want to be mindful of that. Thirdly, as I just outlined with Steve, at this point in the year, property taxes are still largely unknown. As a reminder, the three largest states are California, Georgia, and Florida. California and Georgia are both around 14% of total property tax. Florida is about 41%. So those three states are 70% of a line item that represents about 55% of our total OpEx. So That is always going to be a consideration when that is still kind of waiting for further clarity. Lastly, and I think what is what is maybe most notable is given the disruption some of the earlier versions of the ROAD to Housing Act caused, We do expect the contribution from ResiBuilt to 2026 earnings is going to come in a bit behind our original expectations. Projects that were in flight continued. But there were a number of projects that were scheduled to start in the first half that were delayed, and, in some cases, even canceled. So we are going to have a little bit of a shortfall that we want to try to overcome there. I think the good news is the team is doing a really great job of refilling that pipeline now that the uncertainty overhang has been removed, but it remains to be seen how much of that benefit can be recouped in the second half of 2026 versus rolling into 2027. So when we put all those considerations together, we think our guidance continues to reflect cautious optimism while at the same time acknowledging that there are some unknowns and some execution risks and a decent chunk of the year yet to go. Thank you. Operator: Your next question comes from Buck Horne with Raymond James. Please go ahead. Buck Horne: Hey. Thanks. Good morning. Congrats, guys. Just got a question from a higher level. One of your multifamily peers, Sunbelt, highlighted that quarter over quarter, they saw a big in migration of new leases coming from out of market. I was wondering if you guys might have detected or tracked anything similar in terms of new lease demand kind of migrating into some of your Sunbelt markets from out-of-market Insightful question, Buck. Dallas Tanner: This is Dallas. If, Timothy, if you have anything to add, feel free to add in. It is interesting. We survey going in and going out. And in our second quarter surveys, you know, roughly 85% of our move-ins were in-state move-ins in the second quarter. Based on that survey data. So it is not like we are seeing any major dislocation or out-of-state folks coming in. it is usually about 50% of those, by the way, are moving from city to city. So they are trying out a new area. They want to be close to job corridors, transportation corridors. They are testing out a neighborhood. before they buy. So we have not seen anything that is sort of dramatic in terms of, call it, net migration shifts. Timothy, would you add anything to that? Timothy J. Lobner: I would not add anything specific to our survey data. As it relates to our residents, but I think there is a good story here that we see in third-party data regarding migratory patterns. And, if you look at about 65% to 70% of our markets, we are seeing projected net favorable migration into our markets, and those are primarily Sunbelt markets. Which I think is, favorable for the long-term prospects of our portfolio. So I think you touched on the IH decision-making that goes into where people are living. And I think the broader macroeconomic migratory patterns are favorable as well. Thank you. Operator: Your next question comes from the line of Ami Probandt with UBS. Please go ahead. Ami Probandt: Hi. Thanks. Other core revenue, the decline in the quarter after being up over 10% in the last quarter. So I was wondering, what are the moving pieces within this line item? And how do you expect it to trend for the remainder of the year? Jonathan S. Olsen: Hey, It is John. Thanks for the question. I think It is important to remember that other property income is comprised of both lease fees and value-add service revenue. So the decrease this quarter was driven primarily by lower lease fees, including lower late fees and other administrative charges. Value add service income was actually up about 9% year-over-year. And we continue to see that as an area of growth for us. So year-to-date, other property income has increased almost 5%. And we do expect to continue to see strong growth from that line item for the rest of the year. Thank you. Operator: And the next question comes from Brad Heffern with RBC. Please go ahead. Brad Heffern: Yeah. Hey, everybody. Just a follow-up question on the blends. You almost always see third quarter lower than second quarter. Just given new lease pricing falls off. This year, the July blends are obviously up. It sounds like renewals will continue to be strong and above second quarter levels. So just wondering if we should expect blends to buck the normal seasonal trend and increase in the third quarter. Timothy J. Lobner: Yeah. Look, we generally do not give too much of our projection numbers, before it happens. Right? But, you know, as I mentioned earlier, our renewal numbers that we are seeing in August look much like our July numbers. So we are really happy with the strength of what we are seeing in the marketplace. You know, typically, you do see the blended rate come down in Q4. You see that kind of taper off. But That is a function also of filling the portfolio. So again, we are really happy with how the market is continuing to find its footing. I think the year's shaping up as we expected. And to be honest with you, we like how It is going to set us up for 2027. Thank you. Operator: And the next question comes from John Pawlowski with Green Street. Please go ahead. John Pawlowski: John, can you speak to the third-party management business as well as construction lending? Are those business lines and the contribution to earnings trending better or worse than you expected? And any color on the drivers would be appreciated. Jonathan S. Olsen: Sure. Yeah. That is a good question, John. I think they are trending generally in line with our expectations. We are seeing year-to-date about $4 million lower on third-party property management fee income. That is driven primarily by the fact that we sold a number of homes on behalf of Starwood. And so It is really just a function of a lower average home count as well as the fact that we had about $2.8 million of nonrecurring disposition fees in 2025. And so That is also coloring the year-over-year comp. As far as the lending business goes, and Scott should chime in with anything he thinks I have overlooked, we are actually really pleased with how that is going. Things got pretty quiet while the ROAD to Housing Act was underway, but similar to what we are seeing on the acquisition side, since clarity has been sort of realized, I think there are a lot more interest in inbound activity. The team continues to originate what we think are really interesting deals on real estate that we have a high degree of conviction around. So it continues to be I think, a really compelling area of growth for us. And we are actually a little bit ahead of where we thought we would be at this point in the year, which is great considering that we had about six months of dislocation in the marketplace. Scott G. Eisen: Yeah. And the only thing I would add to that is the program is going according to plan. Right? And as Dallas said in his introduction, we are on track for you know, based upon what is either closed or under commitment right now, call it approximately $350 million in loans. And, again, first principles are still the same. We want strong sponsors. with BTR development and communities where we have boots on the ground. We have local market knowledge of those you areas. And communities that, you know, potentially, we could purchase upon stabilization. So nothing has changed in terms of the design of the program. Nothing's changed in terms of the buy box. We are gonna do the right deals in the right markets. We are being measured in our pace. And we are gonna, you know, do the right loans with the right counterparties when the time is right. But we are on track and we are pleased with the program. Thank you. Operator: Your next question comes from Haendel St. Juste with Mizuho Securities. Please go ahead. Haendel St. Juste: Hey, guys. Good morning, and thanks for taking the question. I wanted to go back to Eric's earlier question about portfolios. I know that you are not seeing any larger portfolios out there today just yet, but I am curious, you know, how you were kind of weighing those opportunities potentially against other capital allocation options on the menu today, where would pricing for some of these portfolios need to be for you to be interested? I think a few years back, yeah, pricing for larger portfolios were in the kind of low to mid-5s. I think you did your last larger portfolio deal back in 2023 with Starwood. So curious overall how you are kind of thinking, assessing the opportunity, and where it kind of stacks up versus the other options. Thanks. Dallas Tanner: Yeah. Good question, Haendel. And this is something that we debate internally and with our board as we think about capital allocation sources and uses. And if you look at the first part of the year, we have been pretty clear about the fact that we saw highest and best use of capital really in the share repurchase program. If these discounts continue to proceed, we are not gonna be afraid to continue to purchase shares. That being said, you know, Scott is starting to see, you know, unique opportunities where maybe going in cap rates are sort of similar or in the same ZIP code of where we may have a view on where, you know, share prices could be trading. So it is an ongoing discussion, something that we will evaluate. It has to be accretive. Is sort of the simple answer at the end of the day. Right? We are not looking to grow for the sake of growing. We certainly want to grow. We are doing a really nice job of harvesting gains off of assets that we do not view as maybe core to our portfolio over a long period of time. We can continue to do some of that, in the foreseeable future if needed. And I think that we will just balance out. In terms of sort of growth opportunities, things Scott's seeing on the development side. You know, we are starting to see some things that could make sense there. That can compete with sort of a share repurchase sort of cost of capital. We are also seeing, you know, and I think Scott was really smart to say this, like, It is really early. Like, we do not want to say, that we are seeing big opportunities in M&A or any of these other sort of scenarios. But you are starting to see you know, sellers poke their heads up from above the, 21st Century ROAD to Housing Act and sort of say, you know, what should I be doing? You know, has my cost of capital changed? Are my opportunities for growth a little bit different than maybe they were? And excuse me. And I think Scott's taking some of those calls. So look, I think we will keep you guys posted. There is nothing to talk about yet. And my guess is this will trickle out, you know, pretty slowly throughout the year. Thank you. Operator: Your next question comes from the line of Austin Wurschmidt with KeyBanc Capital Markets. Please go ahead. Austin Wurschmidt: Yeah. Thanks. John, Timothy, you know, just curious. So lease rate growth is tracking, you know, low- to mid-single-digit range the first half of the year, I think around 2.3%. At the start of the year, you were targeting around a mid-single-digit growth. Any changes to the composition of Same Store revenue growth? And if so, just how are you thinking about that balance between occupancy and rate growth? Jonathan S. Olsen: Yes, It is a good question. I would say, no real change. We continue to be focused on the trade-off between rate and occupancy. I think what is been really striking to me and something that I feel really good about is I do feel that the operations team is striking a better balance between how much occupancy we give up in the course of going out to capture rate. I think the execution continues to improve. And I think it is reflected in kind of the reacceleration we have seen in rental rate growth. Which has been really strong these last couple months. And as Timothy mentioned, trending favorably as we look forward to August. So we are continuing to focus on making sure we drive to sort of an optimized balance between rate and occupancy, recognizing that at this point in the year, the occupancy impact is likely to swamp the impact of blended rate growth. But that does not change the fact that we are focused on trying to capture as much rate as is available in the market while defending occupancy by making thoughtful decisions on how we negotiate on renewals. The good news is despite kind of striking those trade-offs, we continue to see really strong renewal rent growth, which is obviously the primary driver of revenue growth for us. Thank you. Operator: Your next question comes from Peter Abramowitz with Deutsche Bank. Please go ahead. Peter Abramowitz: Yes. Thank you for taking the question. I just wanted to ask about Northern California in general. It has kind of been on fire from a multifamily standpoint. But it is it is actually lagging Southern California and airport portfolio from a revenue growth standpoint. So just kind of curious, could you talk through trends you are seeing there? How AI tailwinds and job formation are kind of impacting renter dynamics? And is it maybe a different demographic that is causing lower growth there versus some of the multifamily peers? Dallas Tanner: Hey. Great question and really an important differentiator between us and when, I think, multifamily operators talk about Bay Area. Demographics or performance trends. Remember, our Northern California portfolio is largely Sacramento, and some of those bedroom communities that sit outside of Sacramento. So the Vallejos, you know, some of those sort of burbs that are kind of as you move towards the Bay. We do not have a Bay Area presence. We have a Sacramento presence. And so Sacramento, I think even for multifamily, behaves very different than, say, Bay Area. Sort of performance. And so our Northern California book is operating as we would sort of expect it, very strong renewals. I would tell you that on the new lease side, it tends to be a bit trickier than maybe our Southern California business, but very steady nonetheless. It is a good customer. It is a great book of business. When we go to sell homes in that part of the country, they sell very quickly. So but just please do not, you know, confuse that with Bay Area multifamily. They are very different portfolios. Thank you. Operator: Your next question comes from Adam Kramer with Morgan Stanley. Please go ahead. Adam Kramer: Great. Thanks. When you look at some of the softer new lease markets, particularly some of the Florida markets, Phoenix, Texas, Are there sort of unifying themes or factors sort of across these markets sort of driving a little bit of a soft performance relative to maybe the Midwest, right? Is it elevated supply still? Is it consumer uncertainty? Maybe some of the migration stats that you guys walked through earlier. I am just sort of wondering what, if anything, is the defining theme across these softer new lease markets. Timothy J. Lobner: Yeah. This is Timothy. Good question. We track this topic closely. Right? Pricing always is a function of supply and demand. And on the supply side, the recovery that Dallas talked about the moderating higher supply levels year-over-year, you know, it hits markets in different ways. And There are certain markets that are recovering faster. We are seeing some really nice supply reduction in markets like Tampa, Orlando, Phoenix. There are other markets that are a bit slower. And, you know, the market's not perfectly efficient in terms of how you capture that. Rent growth as that supply eases, but we are taking advantage of that when we can. You know, the good news is that demand has stayed in really healthy shape this year. If you look at the overall gross number of leads, we are seeing really healthy volume. If you look at, you know, the external funnel, we use Google Analytics. We use Google search terms like houses for lease. That is actually up a hair year-over-year. So we know that there are a lot of people that are still looking for single-family rental homes, especially in our markets. 1 of the things that we are happy about on the internal side is that we are able to convert a lot of these people. We are seeing better conversion rates year-over-year. And I think that is, in large part due to two things. One, our teams are, I think, better equipped with technology that we are providing. We are launching right now and have launched in a couple of our markets a new customer relationship management platform. It is allowing us to really provide better service on the front end of the business as people are searching. And then we are also making some really nice enhancements to our digital shopping experience, and it is allowing people to self-select, and it is we are getting higher quality leads that we can work more effectively. So we like what we are seeing on the demand side. We like what we are seeing on the supply side. Cautiously optimistic that we continue to see the supply levels moderate. over the course of the year. And you are going to see variability across markets as it shows up in the form of new lease and renewal lease rent growth. So, appreciate the question. We are deeply focused on it. Thank you. Operator: Your next question comes from Julien Blouin with Goldman Sachs. Please go ahead. Julien Blouin: Yeah. Thank you. Maybe digging into that last answer a little bit more and specifically looking at your Florida markets, it really looks like from some of the data we look at, that the headwind from rental home listings has eased meaningfully over recent months, I think I think you referenced. It does look like market rent growth has started to inflect, in your Florida markets. I guess, can you dig into the drivers of that? How much of That is driven by homebuilders pulling back on deliveries? Versus how much of it is demand on the for lease or the for sale side starting to clear the available product. And then how sustainable do you think that sort of rent growth improvement we started to see will end up being? Timothy J. Lobner: Look. it is a number of different factors. There is no single driver of it. It is a good question. I think if you look at some of the migration data, we use Oxford Economics as our source, but you look at some of their projections from 2026, and you know, you take it for example, like a market like Orlando, really nice numbers there. You take a look at Tampa, another market with really nice numbers there projected for 2026. You look at, John Burns data that we reference frequently most recently, the June numbers show that, you know, continue to show that build-to-rent deliveries are in the rearview mirror. So you look at those factors along with you know, the various components of what constitutes the supply in the market, And what you will see in our data shows, it is third-party data showing, you know, what are the listings of homes for lease. We are seeing the mom-and-pop number, again, non-institutional. Which drove the big buildup in supply over the last, call it, 24 months. That is also where we are seeing the supply easing if you were to assign or ascribe value to certain cohorts. We are continuing to watch that. We do not have a projection for the future, so I cannot tell you exactly where we think, supply goes over the next six months. But, you know, all the drivers of the market or our operating fundamentals are looking pretty strong. We like it. Again, cautiously optimistic as we navigate the back half of the year. Thank you. Operator: Your next question comes from the line of Jesse Lederman with Zelman and Associates. Please go ahead. Jesse Lederman: Hey. Thanks for taking the question. Question here for Scott. It looks like there is only about 100 homes left in the forward purchase pipeline for 2027. So I would love to get your thoughts on maybe discussions you are having with builders either on forward purchase agreements or what you are seeing on builder tapes and what we should expect in terms of the composition of your external growth moving forward from your various channels And, also, like, a slight two-parter slightly related, any timing on self performance from ResiBuilt? Thanks. Scott G. Eisen: Sure. Great question, Jesse. Thank you. In terms of what we are seeing from the builders, obviously, you have seen, I think at its peak, our builder backlog on forward purchases was at about 2,700 homes, and that is down now to about 300 for, you know, what is in the backlog. And, again, those are forward purchase commitments that we had done over the last two to three years that have taken time to essentially be delivered where the pace was 10 a month. We obviously have not made any new commitments year-to-date, which is why that backlog has declined as quickly and meaningfully as it has. I think where we are seeing the most interesting opportunity is we talked about this on our Investor Day in November, where know, we continue to get monthly tapes from the builders. On standing inventory of homes that can be delivered in a 60- to 90-day time frame instead of a 12- to 18-month time frame. We are still seeing opportunities that, you know, we talked about previously that, you know, are super interesting to us in, you know, call it a 20% discount, cap rate range. You know, we have not, you know, meaningfully leaned into that, but we are starting to see some that we are evaluating again. But I think in terms of that near-term composition, you will probably see us do short-term acquisitions from builder tapes in the short run as opposed to the long-term forward commitments. We still see forwards. I think the valuation and pricing just has not been as attractive, and we are more open to the short-term builder tape stuff. In addition, on ResiBuilt, it has now been about six months since the integration. They are out in the market looking for new opportunities for us as Dallas said earlier, we are evaluating some things as we speak. We are not really ready to sort of talk about where we are in that process, but I think generally speaking, we have seen some great opportunities. You know, their market presence, as you probably know, we have discussed previously, is in Georgia, North Carolina, and Florida. I think we have seen some interesting opportunities that we are evaluating in the Carolinas and Atlanta. And, you know, when we look at these investments with ResiBuilt, you know, we would be doing them both for ourselves and for our joint venture partners of which we have two today, and they are in constant dialogue with us on opportunities. So we are still looking at opportunities evaluating it, and we are trying to figure out what makes the most sense. Thanks, Jesse. Thank you. Operator: Your next question comes from the line of Richard Hightower with Barclays. Please go ahead. Richard Hightower: Hey. Good morning, everybody. Thanks for all the details so far. Back to sort of the fallout or the pro forma coming out of ROAD to Housing Act, You have got a lot of these sort of in-betweener, you know, more than the 350 threshold, but know, people that do not own tens of thousands of homes along the scale of invitation and the largest players in the sector. So just, you know, broadly speaking, what is your outlook for those in-betweeners and, you know, in terms of competition? You know, lacking the scale that you do operationally, you know, as it has been referenced, you know, does it eventually become more of a consolidation opportunity? Your opinion? Just what are your general thoughts there? Dallas Tanner: Yeah. Richard, Dallas here. Look. Generally, we line up with what you said there at the very end. Like, we just believe there will be know, sort of an evolution here where you will see more consolidation. And particularly, I think you will see a lot more of it around BTR. BTR had a sort of a healthy pipeline of new entrants and capital formation kind of going into a before the ROAD to Housing Act. I think we mentioned it in our remarks, like it definitely froze capital. And I am and I do not want to give the, impression that capital has thawed, but it is starting to poke its eyes up and sort of say, okay. How can we participate in this sector? How can we be, you know, meaningfully committed to creating new supply? Which all lines up with our business plan. with what we laid out in November at our Investor Day. Like, we definitely want to be if not the largest, the best operator of build-to-rent communities in the country. That is definitely a goal of ours. We are gonna we now, I think, what we operate and own and in JVs are probably getting close to almost 100 communities. We have, you know, expertise here in a similar way that we are doing it on the scattered-site. So I think you know, as these smaller operators, these small portfolios, smaller pools of capital are looking for sort of a way to either enhance returns through third-party management, or look for an exit partner, I think Invitation Homes could fit that bill nicely. It will still come down to cost of capital and where we think our cost of capital is, Scott talked about being active with JVs and in partnerships. That is easier for us in this environment right now. It requires less out-of-pocket costs, and we make actually a better ROI for our shareholders when you consider the fees and the structures that are in place in those agreements. I think as it relates to the balance sheet, we will weigh it out you know, relative to share repurchase and other things that we are looking at. The lending business has been really accretive. And we are pleased with what that is doing. it is also a conduit for new activity for the company. Both in the build-to-rent space and in the third-party property management sort of, you know, what I would say, ecosystem. And the team are doing a really good job of just balancing it. I think if there is anything we want people to take away from the call, is our approach on capital allocation, how we think about growth? The word is balance. Like, just having really sophisticated balance in how we think about both deploying capital, whether it was through M&A or growth, in lending, or in share repurchase. We are just gonna be really disciplined capital allocators. I think, you know, I think the streets sort of the Street has seen what we have done over the last six to eight months. We have been smart about when to do it and why. And with our approach and our conversations both in our management investment committees and with our board will continue to be the same. Thank you. Operator: Your next question comes from Jade Rahmani with KBW. Please go ahead. Jason Sabshon: Hi. Thanks for taking the question. This is Jason Sabshon on for Jade. So just out of curiosity, how much of the new lease rate growth do you think is seasonal versus improvement in underlying conditions? Because the typical cadence is for there to be an uplift from Q1 to Q2. Thanks. Timothy J. Lobner: Yeah. Hey. Great question. You know, our perspective is that we are seeing improving market conditions. Yes. Obviously, we know that there is a degree of seasonality to new lease growth, and we talked about that at investor conferences and on past calls. But if you look at the supply data, again, the unique listings in each market of for-lease properties, that number's coming down, and remember, pricing is a direct reflection of supply and demand. Demand remaining healthy, supply coming down. So we believe that the fundamentals are actually in our favor right now. Again, we are cautiously optimistic about how the rest of the year proceeds. But, again, it is, it is panning out as we expected. And as I mentioned earlier, we are liking the setup for 2027. Thank you. Operator: We do have a follow-up question coming from Ami Probandt with UBS. Please go ahead. Ami Probandt: Hi. Thanks for the follow-up. Following the resolution on the ROAD to Housing Act, do you think that your scattered-site infill portfolio becomes relatively more valuable given that cannot really be replicated at this point? And if so, does that change your view on capital recycling from those scattered-site homes? Dallas Tanner: Look, I think our view on all of the grandfathered assets as it relates to the new legislation obviously have sort of a premium valuation tied to it in the sense that you are an operator operating those assets. I would not say it is absolute in terms of how you think about your asset management strategies--what you want to sell versus what you want to hold, what you want to reinvest in. But there certainly is value to it. And I think It is smart to recognize that you know, there are a number of operators that are going to have a grandfathered sort of edge, right, to the portfolios. And look, taking another step back. You know, the bill certainly, in our understanding, allows for growth in a scattered sense so long as you are doing it with builders going forward. And it is new product or new product as it is called in the bill. Now there is still rulemaking and things like that, but what Scott's doing right now participating in these communities with a number of both you know, private, regional, and public builders is another way that will enhance our scattered footprint. We are huge believers in the scattered footprint thesis. In terms of both how it works for the families and the residents that live there. They love being in communities where their neighbors are homeowners and there is stability and kids are growing up in similar neighborhoods with other families. And we also like it from an operational perspective because it is part of our edge. We are really good at operating scattered-site homes. And so I think both the value of our legacy portfolios we will look at in the future and how we will design our aggregation of capital and how we will invest capital in the foreseeable future, scattered-site homes will be a large part of it. Thank you. Operator: Our last question comes from Brad Heffern with RBC. Please go ahead. Brad Heffern: Hey. Yeah. Thanks. Appreciate the follow-up. Can you talk about on ResiBuilt, what sort of NOI we can expect that to generate? Looks like it was about $12 million in the half. I am sure it will bounce around just given the nature of the business. But is that a good run rate? Or is there a different way we should think about it as it potentially transitions to more development specifically for invitation? Jonathan S. Olsen: Yeah. I mean, It is a good question. I think it is a little early to say. As I mentioned, you know, earlier in some of my Q&A responses, the disruption in the market sort of the chilling effect on capital formation that we saw for about 5 of the first six months of the year, is going to cause us to have to overcome a little bit of a gap in terms of what we expected to come off ResiBuilt. As we look to the future, look, to be clear, we view that as a strategic acquisition that provides us a lever to continue to grow via a channel and a capability that we did not possess. previously. So you know, I am not I am not prepared to say what I think the earnings contribution may be over time. But I would say that we are really excited about what we are seeing. Fee-building is gonna continue to be a big part of our strategy going forward. That is a very accretive, profitable business. And the ResiBuilt team is exceptionally good at that. And then as Dallas mentioned earlier, you know, we are looking at more opportunities. Scott's seeing more things with the ResiBuilt team that, you know, may eventually make sense to do either on balance sheet or with joint venture partners. But our expectation is that this is going to be a growth engine for our business over time. Thank you. Operator: And that concludes the question-and-answer session. I would like to hand it back to the president and CEO, Dallas Tanner, for closing remarks. Dallas Tanner: We want to thank everyone for participating today. We look forward to seeing everybody this fall. Thank you. Operator: Thank you, presenters. And ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect. Before you buy stock in Invitation Homes, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invitation Homes wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Invitation Homes. The Motley Fool has a disclosure policy. Invitation Homes (INVH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Invitation Homes has delivered a decline of 12.6% over the past 5 years, and the stock now trades at about US$29.72. A Discounted Cash Flow (DCF) intrinsic value estimate suggests meaningful upside, while market based multiples look roughly in line with peers. That split leaves investors weighing whether the DCF implied discount or the more neutral trading multiples provide the better guide to value today. The 12.6% share price decline over 5 years points to a stock that has not rewarded long term holders despite more recent gains this year. For a residential rental focused business like Invitation Homes, expectations for steady occupancy and cash flow generation can support the DCF estimate, while any pressure on funding costs or property valuations may limit how much investors are willing to pay for that cash flow. On Simply Wall St's checks, Invitation Homes presents a mixed picture, with 3 of 6 valuation tests pointing to value rather than indicating a clear bargain or a clearly expensive stock. The stock's next move may depend on whether the current share price continues to reflect the more neutral market multiples or begins to close the gap implied by the Discounted Cash Flow intrinsic value estimate. Find out why Invitation Homes' 2.3% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) approach estimates what Invitation Homes is worth based on the cash it can generate for shareholders. In this model, the company is treated as a mature rental platform that continues to produce sizeable, recurring cash flows rather than a high-growth story. Invitation Homes reported latest twelve month free cash flow of about $1.0b in US$, and the model assumes these cash flows keep growing from this base over time. Using a two-stage DCF based on adjusted funds from operations, the intrinsic value comes out at about $42 per share. That is above the current share price of about $29.72, which implies a discount of roughly 29.8% to the DCF estimate. On this cash flow view, Invitation Homes appears undervalued relative to the current share price. Our Discounted Cash Flow (DCF) analysis suggests Invitation Homes is undervalued by 29.8%. Track this in your watchlist or portfolio, or discover 55 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Invitation Homes. The P/E ratio suits a business like Invitation Homes because earnings are a key link between rental income and what you are paying for each unit of profit. On this measure, Invitation Homes trades on a P/E of about 26.6x, compared with an average of about 21.8x for Residential REITs. It also sits below a peer group average of about 78.6x, which is pulled higher by a few companies on much richer earnings multiples. Simply Wall St's model suggests a fair P/E for Invitation Homes of about 26.5x once factors such as sector, size and risk are considered. That is very close to the current 26.6x, so the stock does not screen as either particularly cheap or particularly expensive on earnings alone. For investors weighing the DCF upside against the market view, the P/E points to a company that is already priced broadly in line with what its earnings profile might justify. On the P/E multiple, Invitation Homes looks roughly fairly valued at current levels. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Invitation Homes pick up where this valuation puzzle leaves off and spell out which paths for Invitation Homes' growth, margins and earnings would be consistent with a much higher or much lower share price than today, using the Community page as the home for those scenarios. Each narrative links its numbers to a specific view on how growth, profitability and risks could evolve, which you can revisit as fresh data appears over time. You can add your own Narrative on Invitation Homes and put a clear, number driven case on where its growth, margins and execution go from here. Share a view, set your assumptions in black and white, and be one of the first voices in the Simply Wall St community tracking how that thesis holds up as fresh results arrive. Do you think there's more to the story for Invitation Homes? Head over to our Community to see what others are saying! Invitation Homes screens as undervalued on a Discounted Cash Flow (DCF) view, with the intrinsic value estimate sitting well above the current share price. At the same time, the P/E multiple suggests the stock is priced about right relative to peers, which fits with the mixed result across broader valuation checks. The crux for investors is whether the market eventually leans more on the cash flow story or keeps anchoring to current earnings-based multiples. The key swing factor is how confidently you view the durability of rental cash flows after funding costs and capital needs. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include INVH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Invitation Home? Here are five stocks we like better. Operating performance improved: Invitation Homes maintained 97.1% average occupancy in Q2, with renewal rent growth reaching 3.7% in June and core FFO per share rising 5% year over year. Capital deployment accelerated: The company sold 657 homes for approximately $309 million, raised its full-year home-sales guidance by $300 million, repurchased $100 million of stock, and reduced revolver borrowings to $280 million. Full-year outlook increased, but risks remain: Management raised core FFO guidance to $1.95 per share and AFFO guidance to $1.65, while citing seasonal turnover, property-tax uncertainty and elevated housing supply as second-half challenges. Invitation Home (NYSE:INVH) reported second-quarter results marked by occupancy above 97%, accelerating new-lease pricing through June and higher funds from operations, while executives raised full-year guidance and highlighted capital deployment through stock repurchases, home sales and construction lending. President and Chief Executive Officer Dallas Tanner said the single-family rental company’s average occupancy remained above 97% during the quarter, while new-lease rate growth accelerated for a sixth consecutive month. Core FFO per share rose 5% year over year and adjusted FFO per share increased just under 6%, he said. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Tanner also discussed the recently enacted 21st Century ROAD to Housing Act, which he said provides clarity for the company and broader housing industry. He said the legislation includes provisions intended to accelerate and encourage new construction, a policy objective Invitation Homes supports through its homebuilder partnerships and new-construction activities. According to Tanner, John Burns data show it is, on average, more than $1,000 per month cheaper to lease than own a comparable home in Invitation Homes’ markets. Based on the company’s average resident tenure of slightly more than 40 months, he said that represents more than $40,000 of savings for a typical household. → Microsoft Just Flipped the AI Spending Narrative Overnight Chief Operating Officer Tim Lobner said same-store net operating income increased 1.5% from a year earlier in the second quarter. The increase reflected 1.6% core revenue growth and 1.9% growth in core operating expenses. Second-quarter renewal rent growth averaged 3.3%, rising to 3.7% in June. New-lease rent growth was 1.1% for the quarter. Blended lease rent growth was 2.7%. Turnover improved 50 basis points year over year to 5.7%. Average occupancy was 97.1% during the quarter. Lobner said controllable expenses declined 1% year over year, while fixed costs, including property taxes and insurance, rose 3.5%. He attributed the controllable-cost result to operational execution and said both fixed and controllable expenses were tracking in line with the company’s expectations. → Carrier Earnings Could Send the Stock to a New All-Time High The company’s preliminary July figures showed renewal rent growth of 4.3%, new-lease growth of 1.2% and blended growth of 3.4%. July occupancy averaged 96.5%, which Lobner said reflected normal seasonal move-outs. He said August renewals were shaping up similarly to July, while new-lease growth is expected to moderate through the remainder of the year following its seasonal peak. Management said supply conditions were improving, though some markets still have excess inventory to absorb. Lobner said build-to-rent deliveries have declined and growth in new single-family rental supply has slowed, while markets that had been most oversupplied were experiencing sharper reductions in unsold new-home inventory. Chief Financial Officer Jon Olsen said core FFO was $0.51 per share during the second quarter, up 5% from the prior year, while AFFO was $0.44 per share, an increase of nearly 6%. Invitation Homes sold 657 wholly owned homes, primarily to end users, for approximately $309 million in gross proceeds during the quarter. It acquired 196 homes from homebuilder partners for about $74 million. As dispositions have exceeded the company’s earlier expectations, Olsen said Invitation Homes increased its full-year guidance for sales of wholly owned homes by $300 million at the midpoint, to $850 million. Acquisition guidance was unchanged, with midpoints of $250 million for wholly owned homes purchased from builder partners and $100 million through joint ventures. The company repurchased another $100 million of stock in the second quarter, bringing total repurchases since the program began late last year to $600 million. Invitation Homes has repurchased about 22.8 million shares at an average price of $26.30 each, according to Olsen. Olsen said the average repurchase price represented an implied value of slightly more than $270,000 per wholly owned home, compared with the company’s year-to-date average home sale price of $450,000. Proceeds from asset sales and free cash flow helped reduce the company’s revolver balance to $280 million at June 30 from $560 million at March 31. Net debt to trailing 12-month adjusted EBITDA stood at 5.4 times at quarter-end, slightly below the company’s 5.5-times to 6-times target range. Invitation Homes ended the quarter with more than $1.5 billion in available liquidity, with substantially all debt fixed or swapped to fixed rates and approximately 90% of wholly owned homes unencumbered. Earlier in July, the company issued $500 million of 2032 senior notes carrying a 4.95% coupon. It used net proceeds to prepay approximately half of its 2017-1 securitization, which had a $988 million balance at June 30 and matures next summer. Invitation Homes raised its full-year core FFO guidance midpoint by $0.01 to $1.95 per share and its AFFO midpoint by $0.01 to $1.65 per share. The company also narrowed its same-store core revenue and NOI growth guidance ranges around unchanged midpoints. Olsen said the outlook reflected “cautious optimism,” while noting risks related to seasonally higher turnover, the need to maintain occupancy amid an improving but still elevated supply backdrop, and uncertainty around property-tax assessments. Property taxes represent about 55% of total operating expenses, he said, with California, Georgia and Florida accounting for about 70% of the property-tax line item. Management also said the disruption created by earlier versions of the ROAD to Housing Act delayed or canceled some ResiBuilt projects scheduled to begin during the first half. As a result, ResiBuilt’s 2026 earnings contribution is expected to trail original expectations, although executives said its development pipeline has begun to refill following the legislation’s passage. Chief Investment Officer Scott Eisen said the company had begun seeing more interest in smaller acquisition portfolios after legislative uncertainty subsided, though transaction activity remained limited and he did not provide pricing expectations. The company has construction loan commitments, including deals still under diligence, totaling just under $350 million, with roughly 10% funded. Tanner said the loans typically generate high-single-digit yields and may provide an opportunity to acquire completed communities. Invitation Homes (NYSE: INVH) is a real estate investment trust that specializes in the ownership, operation and leasing of single-family rental homes across the United States. The company focuses on acquiring suburban and urban-adjacent single-family residences and managing them as rental properties for households seeking professionally managed, long-term housing alternatives to traditional homeownership or multifamily rentals. Operationally, Invitation Homes is involved in the full lifecycle of the single-family rental business: sourcing and acquiring homes, performing renovations and ongoing maintenance, marketing and leasing properties, and providing property management and resident services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Invitation Home Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Core FFO per share grew 5% year-over-year in Q2 2026, demonstrating strong financial performance. New lease rate growth accelerated for six consecutive months through June, indicating improving pricing power. The company repurchased $100 million of stock in Q2 at an average price of $26 per share, well below the $450,000 average sale price per home, creating significant shareholder value. Controllable operating expenses decreased 1% year-over-year, reflecting disciplined cost management by field teams. The passage of the 21st Century Road to Housing Act provides regulatory clarity, allowing Invitation Homes Inc (NYSE:INVH) to continue its core business and pursue new acquisition and development opportunities. New lease rate growth remained modest at 1.1% in Q2, reflecting ongoing supply pressures in certain markets. The ResiBuilt development pipeline faced disruption due to legislative uncertainty, leading to a shortfall in expected 2026 earnings contributions. Property tax expenses, a major cost driver, remain largely unknown for the second half of the year, creating uncertainty in expense guidance. Average occupancy declined to 96.5% in July from 97.1% in Q2, reflecting normal seasonal turnover and potential execution risk in the back half of the year. Other property income declined in Q2 due to lower lease fees, including late fees and administrative charges, partially offsetting gains in value-added services. Here are the key highlights from the Invitation Homes Inc (NYSE:INVH) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 7 Warning Signs with INVH. Is INVH fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on July new, renewal, and blended lease rate growth, and what are your assumptions for the second half of the year given seasonal moderation? A: Tim (COO): In July, renewals were at 4.3%, new leases at 1.2%, resulting in a blended rate of 3.4%. We are pleased with the upward trend. For the back half, we expect new lease growth to moderate seasonally, while renewals, which represent 75-80% of our business, typically remain in the 3.5% to 4.5% range. August renewals are shaping up similarly to July, so we are happy with the execution and momentum. Q: You mentioned starting to see smaller portfolios come to market. How do you think these will price from a cap rate perspective, and how would you prioritize them against other capital allocation options like share repurchases? A: Scott (CIO): We are seeing smaller portfolios (sub-$100M to slightly larger) come to market post the Road to Housing Act, but it's too early to give specific pricing guidance. Capital allocation is a constant debate. While share repurchases have been the highest and best use given the discount to NAV, we are now seeing acquisition opportunities with cap rates in a similar "zip code" to where our shares trade. We will be disciplined and balanced, evaluating each opportunity on its merits. Q: On the expense side, it moderated from Q1 to Q2. What are the key puts and takes for the back half of the year and into 2027? A: John (CFO): The biggest variable is always property taxes, which represent about 55% of total OpEx. We won't have preliminary views on valuations for another 3-4 weeks. The most encouraging trend is the strong cost control on the controllable side, with total turn costs looking very favorable. The team is making thoughtful decisions on service delivery, which gives us confidence. Q: What drove the guidance increase for core FFO and AFFO, and what are the potential offsets or execution risks in the second half of the year? A: John (CFO): The increase reflects strong first-half performance. However, we remain cautious due to several factors: 1) Higher turnover in the second half creates execution risk. 2) Property taxes are still largely unknown, especially in our largest states (CA, GA, FL). 3) The ResiBuilt contribution will be slightly behind original expectations due to project delays caused by legislative uncertainty earlier this year. We are cautiously optimistic but acknowledge these risks. Q: Can you talk about the trends you are seeing in your Florida markets, where supply headwinds appear to be easing? How sustainable is the improvement in rent growth? A: Tim (COO): The improvement is driven by multiple factors. Migration data from Oxford Economics shows strong projected in-migration for markets like Orlando and Tampa. Third-party data shows that new home deliveries are in the rearview mirror, and the supply of homes for lease from mom-and-pop landlords is also easing. While we don't have a specific projection, all the fundamental drivers are pointing in a favorable direction, and we are cautiously optimistic. Q: How much of the new lease rate growth improvement is seasonal versus an improvement in underlying market conditions? A: Tim (COO): We believe we are seeing improving market conditions. While there is a degree of seasonality, the supply data is a key indicator. The number of unique listings for lease in each market is coming down. With demand remaining healthy and supply decreasing, the fundamentals are in our favor. We are liking the setup for 2027. Q: With the Road to Housing Act now settled, what is your outlook for the "in-betweeners" (operators with thousands of homes but less scale than you)? Does this become a consolidation opportunity? A: Dallas (CEO): Yes, we believe there will be an evolution towards more consolidation, particularly in the Build-to-Rent (BTR) space. Smaller operators and pools of capital are looking for enhanced returns through third-party management or an exit partner. Invitation Homes can fit that bill. Our approach to growth will be balanced, using JVs and partnerships where they provide a better ROI, while remaining disciplined on capital allocation. Q: Other property revenue declined in the quarter after being up over 10% last quarter. What are the moving pieces, and how should we think about this line item for the rest of the year? A: John (CFO): The decrease was driven primarily by lower lease fees, including late fees and other administrative charges. However, value-added service income was actually up about 9% year-over-year. Year-to-date, other property income has increased, and we expect to continue seeing strong growth from the value-added service line item for the remainder of the year. Q: How are you thinking about the forward purchase pipeline for new homes from builders, and what is the status of the ResiBuilt platform? A: Scott (CIO): The forward purchase backlog has declined to about 300 homes as we haven't made new long-term commitments. We are now seeing more attractive opportunities in short-term builder tape acquisitions, which offer a ~20% discount and a ~6% cap rate. On ResiBuilt, the team is actively evaluating new opportunities in the Carolinas and Atlanta, both for our own balance sheet and for our joint venture partners. Q: Given the new legislation, does your grandfathered portfolio become relatively more valuable, and does that change your view on capital recycling from scattered-site homes? A: Dallas (CEO): The grandfathered assets certainly have a premium valuation tied to the certainty they provide. However, it doesn't change our absolute view on what to hold or recycle. We remain huge believers in the scattered-site thesis for the resident experience and because it is part of our operational edge. While we will use new channels like BTR to grow, scattered-site homes will remain a large part of our future capital allocation. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a strong peak leasing season with average occupancy holding above 97% and six consecutive months of accelerating new lease rate growth. The enactment of the 21st Century ROAD to Housing Act has provided critical business clarity, encouraging new construction and stabilizing the acquisition environment. Management attributes strong demand to a significant affordability gap, noting it is approximately $1,000 per month cheaper to lease than to own in their core markets. Strategic capital allocation focused on selling homes at a premium to end-users and recycling that capital into share repurchases at a significant discount to asset value. The acquisition of ResiBuilt and expansion of construction lending are central to the strategy of building a premier single-family rental platform through new supply channels. Operational efficiency was highlighted by a 1% year-over-year decrease in controllable expenses, reflecting disciplined cost management across the field teams. Full-year guidance was raised based on first-half momentum, though management remains cautious regarding seasonal turnover and execution risks in the second half. The ResiBuilt pipeline is reaccelerating following legislative clarity, though 2026 earnings contribution may lag original expectations due to early-year project delays. Management expects a 'thaw' in the acquisition market, with more sellers and smaller portfolios emerging now that regulatory uncertainty has settled. Property tax remains a significant variable for the second half, with key assessments in Florida, California, and Georgia expected in the coming months. The construction lending business is projected to reach approximately $350 million in commitments, serving as a pipeline for future community acquisitions. The company repurchased $100 million of stock in Q2, totaling $600 million since late 2025 at an average price of $26.30 per share. A $500 million senior note offering at 4.95% was completed in July to prepay a portion of a 2017 securitization maturing in 2027. Wholly owned disposition guidance was increased by $300 million to a midpoint of $850 million, reflecting a faster-than-expected pace of opportunistic sales. Management flagged that while the ROAD to Housing Act provides clarity, ongoing engagement with Treasury and HUD is required as regulatory guidance takes shape. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is seeing increased activity in smaller portfolios (sub-$100 million) now that legislative uncertainty has passed. Specific pricing guidance is premature, but any deals must compete with the accretion offered by share repurchases. July blended lease growth reached 3.4%, with renewals accelerating to 4.3% while new lease growth moderated to 1.2%. Management expects typical seasonal moderation in the fourth quarter but remains optimistic about the setup for 2027. The earlier versions of the ROAD to Housing Act caused some project delays and cancellations in the first half of the year. While the pipeline is now refilling, the full benefit may not be realized until 2027, causing a slight shortfall in 2026 expectations. Supply levels from non-institutional 'mom-and-pop' owners are easing in markets like Tampa, Orlando, and Phoenix. Management is seeing better lead conversion rates due to new CRM technology and enhanced digital shopping experiences.

DALLAS, July 29, 2026--(BUSINESS WIRE)--Invitation Homes Inc. (NYSE: INVH) ("Invitation Homes," "we," "our," and "us"), the nation’s premier single-family home leasing and management company, today announced our Second Quarter ("Q2") 2026 financial and operating results. Q2 2026 Highlights Year over year, total revenues increased 9.7% to $748 million, property operating and maintenance costs increased 4.7% to $256 million, and net income available to common stockholders increased 55.1% to $218 million, or $0.37 per diluted common share. Year over year, Core FFO per share increased 5.0% to $0.51, while AFFO per share increased 5.9% to $0.44. Same Store NOI increased 1.5% year over year on 1.6% Same Store Core Revenues growth and 1.9% Same Store Core Operating Expenses growth. Same Store Average Occupancy was 97.1%, an expected reduction of 20 basis points year over year. Same Store renewal rent growth of 3.3% and Same Store new lease rent growth of 1.1% resulted in Same Store blended rent growth of 2.7%. We disposed of 657 wholly owned homes, many to families purchasing for their own use, and acquired 196 wholly owned homes, for net dispositions of 461 homes and net proceeds of approximately $234 million that were used for second quarter share repurchases and paying down debt that partially funded our first quarter share repurchases. During Q2 2026, we acquired 3,478,690 shares of our common stock for approximately $100 million under our second $500 million share repurchase program that was authorized by our board of directors on April 27, 2026. Combined with our prior $500 million program, since December 2025 we have repurchased a total of 22,812,421 shares for approximately $600 million at an average price per share of $26.30. At quarter end, we had $1,546 million in available liquidity through a combination of unrestricted cash and undrawn capacity on our revolving credit facility. As of June 30, 2026, our net debt / TTM adjusted EBITDAre was 5.4x, below our targeted range of 5.5x to 6.0x. As previously announced, on June 30, 2026, we priced a public offering of $500 million aggregate principal amount of 4.950% senior notes (the "Notes"). The Notes were priced at 99.291% of the principal amount and mature on February 1, 2032. The offering closed subsequent to quarter end on July 8, 2026, with net proceeds used to prepay a portion of our $988 million secured debt obligation maturing in June 2027. Reflecting our year to date performance, we have raised our full year 2026 guidance by one cent at the midpoint for both Core FFO per share and AFFO per share to $1.95 and $1.65, respectively. We have also narrowed our Same Store Core Revenue growth and Same Store NOI growth guidance ranges, while holding both midpoints unchanged, and increased our wholly owned disposition guidance midpoint by $300 million to $850 million, driven by continued favorable private market valuations relative to public market pricing. Glossary & Reconciliations of Non-GAAP Financial and Other Operating Measures Financial and operating measures found in the Earnings Release and Supplemental Information include certain measures used by Invitation Homes management that are measures not defined under accounting principles generally accepted in the United States ("GAAP"). These measures are defined herein and, as applicable, reconciled to the most comparable GAAP measures. Comments from Chief Executive Officer Dallas Tanner "We delivered another quarter of strong operational execution thanks to our caring associates and loyal residents. New lease rent growth accelerated every month through June this year, and demand for high-quality rental homes remains healthy across our markets, particularly as leasing a home now costs an average of over $1,000 less per month than owning, according to data from John Burns. We continue to sell homes at prices well above what is implied by our current stock price, and since December, we have repurchased $600 million of our own shares. Given this performance, we have raised our full-year guidance by a penny at the midpoint for both Core FFO per share and AFFO per share, to $1.95 and $1.65, respectively." Financial Results Net Income Net income per common share — diluted for Q2 2026 was $0.37, compared to net income per common share — diluted of $0.23 for Q2 2025. Total revenues and total property operating and maintenance expenses for Q2 2026 were $748 million and $256 million, respectively, compared to $681 million and $244 million, respectively, for Q2 2025. Net income per common share — diluted for YTD 2026 was $0.63, compared to net income per share — diluted of $0.50 for YTD 2025. Total revenues and total property operating and maintenance expenses for YTD 2026 were $1,482 million and $507 million, respectively, compared to $1,356 million and $482 million, respectively, for YTD 2025. Core FFO Year over year, Core FFO per share for Q2 2026 increased 5.0% to $0.51, while Core FFO per share for YTD 2026 increased 1.9% to $0.99, primarily due to NOI growth, stock repurchases, and our acquisition of ResiBuilt in January 2026. AFFO Year over year, AFFO per share for Q2 2026 increased 5.9% to $0.44, while AFFO per share for YTD 2026 increased 1.6% to $0.85, primarily due to the increase in Core FFO per share described above. Operating Results Same Store NOI For the Same Store Portfolio of 77,326 homes, Same Store NOI for Q2 2026 increased 1.5% year over year on Same Store Core Revenues growth of 1.6% and Same Store Core Operating Expenses growth of 1.9%. YTD 2026 Same Store NOI increased 0.7% year over year on Same Store Core Revenues growth of 1.7% and Same Store Core Operating Expenses growth of 3.7%. Same Store Core Revenues Q2 2026 year over year Same Store Core Revenues growth of 1.6% was primarily driven by a 2.0% increase in Average Monthly Rent, partially offset by a 20 basis point year over year decrease in Average Occupancy. YTD 2026 year over year Same Store Core Revenues growth of 1.7% was primarily driven by a 2.1% increase in Average Monthly Rent and a 4.7% increase in other income, net of resident recoveries, partially offset by a 60 basis point year over year decrease in Average Occupancy. Same Store Core Operating Expenses Q2 2026 year over year Same Store Core Operating Expenses increased 1.9%, primarily attributable to a 3.5% increase in fixed expenses, partially offset by a 1.0% decrease in controllable expenses. YTD 2026 year over year Same Store Core Operating Expenses increased 3.7%, primarily driven by a 3.1% increase in fixed expenses and a 4.8% increase in controllable expenses. Investment, Property Management, and Homebuilding Activity During Q2 2026, we sold 657 wholly owned homes, many to families purchasing for their own use, for gross proceeds of approximately $309 million, and we sold 14 homes for gross proceeds of approximately $6 million in our joint ventures. Acquisitions for Q2 2026 included 196 wholly owned homes for approximately $74 million and 67 homes for approximately $23 million in our joint ventures. YTD 2026, we sold 1,140 wholly owned homes for gross proceeds of approximately $515 million and 24 homes for gross proceeds of approximately $11 million in our joint ventures. We also acquired 457 wholly owned homes for approximately $165 million and 87 homes for approximately $31 million in our joint ventures. A summary of our owned and/or managed homes is included in the following table: Balance Sheet and Capital Markets Activity As of June 30, 2026, we had $1,546 million in available liquidity through a combination of unrestricted cash and undrawn capacity on our revolving credit facility. In addition, our total indebtedness of $8,593 million consisted of 83.8% unsecured debt and 16.2% secured debt; 92.4% of our total debt was fixed rate or swapped to fixed rate; approximately 90% of our wholly owned homes were unencumbered; and our Net debt / TTM adjusted EBITDAre was 5.4x, below our targeted range of 5.5x to 6.0x. During Q2 2026, we acquired 3,478,690 shares of our common stock for approximately $100 million under our second $500 million share repurchase program that was authorized by our board of directors on April 27, 2026. Combined with our prior $500 million program, since December 2025 we have repurchased a total of 22,812,421 shares for approximately $600 million at an average price per share of $26.30. As previously announced, on June 30, 2026, we priced a public offering of $500 million aggregate principal amount of 4.950% senior notes (the "Notes"). The Notes were priced at 99.291% of the principal amount and mature on February 1, 2032. The offering closed subsequent to quarter end on July 8, 2026, with net proceeds used to prepay a portion of our $988 million secured debt obligation maturing in June 2027. FY 2026 Guidance We have raised our full year 2026 guidance, increasing Core FFO per share and AFFO per share midpoints by one cent each to $1.95 and $1.65, respectively, as set forth below, in addition to our other underlying assumptions. In accordance with SEC rules, we do not provide guidance for the most comparable GAAP financial measures of net income (loss) per share, total revenues, and property operating and maintenance expense. Additionally, a reconciliation of the forward-looking non-GAAP financial measures of Core FFO per share, AFFO per share, Same Store Core Revenues growth, Same Store Core Operating Expenses growth, and Same Store NOI growth to the comparable GAAP financial measures cannot be provided without unreasonable effort because we are unable to reasonably predict certain items contained in the GAAP measures, including non-recurring and infrequent items that are not indicative of our ongoing operations. Such items include, but are not limited to, impairment on depreciated real estate assets, net (gain)/loss on sale of previously depreciated real estate assets, share-based compensation, net casualty losses and reserves, non-Same Store revenues, and non-Same Store operating expenses. These items are uncertain, depend on various factors, and could have a material impact on our GAAP results for the guidance period. Earnings Conference Call Information We have scheduled a conference call at 11:00 a.m. Eastern Time on July 30, 2026, to review Q2 2026 results, discuss recent events, and conduct a question-and-answer session. The domestic dial-in number is 1-888-330-2384, and the international dial-in number is 1-240-789-2701. The conference ID is 7714113. Listen-only participants are encouraged to join the conference call via a live audio webcast, which is available online from our investor relations website at www.invh.com. Following the conclusion of the earnings call, we will post a replay of the webcast to our website for one year. Supplemental Information The full text of the Earnings Release and Supplemental Information referenced in this release are available on our Investor Relations website at www.invh.com. About Invitation Homes Invitation Homes, an S&P 500 company, is the nation’s premier single-family home leasing and management company, helping to expand housing through new development and strategic partnerships. Our purpose, Unlock the Power of Home™, reflects our commitment to address America’s housing needs by delivering high-quality living solutions and Genuine CARE™ to those who choose the flexibility and value of leasing. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "guidance," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties that may impact our financial condition, results of operations, cash flows, business, associates, and residents, including, among others, risks inherent to the single-family rental industry and our business model, macroeconomic factors beyond our control, federal, state, and local laws, regulations, executive actions, and policy initiatives, competition in identifying and acquiring properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association ("HOA") fees and insurance costs, poor resident selection and defaults and non-renewals by our residents, our dependence on third parties for key services, risks related to the evaluation of properties, performance of our information technology systems, development and use of artificial intelligence, risks related to our indebtedness, risks related to the potential negative impact of fluctuating global and United States economic conditions (including inflation and imposition or increase of tariffs and trade restrictions by the United States and foreign countries), uncertainty in financial markets (including as a result of events affecting financial institutions), geopolitical tensions, natural disasters, climate change, and public health crises. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under Part I. Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release, in the Annual Report, and in our other periodic filings. The forward-looking statements speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law. Glossary and Reconciliations Average Monthly Rent Average monthly rent represents average monthly rental income per home for occupied properties in an identified population of homes over the measurement period, and reflects the impact of non-service rental concessions and contractual rent increases amortized over the life of the lease. Average Occupancy Average occupancy for an identified population of homes represents (i) the total number of days that the homes in such population were occupied during the measurement period, divided by (ii) the total number of days that the homes in such population were owned during the measurement period. Bad Debt Bad debt represents our reserves for residents’ accounts receivables balances that are aged greater than 30 days, under the rationale that a resident’s security deposit should cover approximately the first 30 days of receivables. For all resident receivables balances aged greater than 30 days, the amount reserved as bad debt is 100% of outstanding receivables from the resident, less the amount of the resident’s security deposit on hand. For the purpose of determining age of receivables, charges are considered to be due based on the terms of the original lease, not based on a payment plan if one is in place. All rental revenues and other property income, in both Total Portfolio and Same Store Portfolio presentations, are reflected net of bad debt. Core Operating Expenses Core operating expenses for an identified population of homes reflect property operating and maintenance expenses, excluding any expenses recovered from residents. Core Revenues Core revenues for an identified population of homes reflects total revenues, net of any resident recoveries. EBITDA, EBITDAre, and Adjusted EBITDAre EBITDA, EBITDAre, and Adjusted EBITDAre are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. We define EBITDA as net income or loss computed in accordance with accounting principles generally accepted in the United States ("GAAP") before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. National Association of Real Estate Investment Trusts ("Nareit") recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. We define EBITDAre, consistent with the Nareit definition, as EBITDA, further adjusted for gain on sale of property, net of tax, impairment on depreciated real estate investments, and adjustments for unconsolidated joint ventures. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; business reorganization costs; casualty (gains) losses and reserves, net; amortization of intangible assets; and other income and expenses. EBITDA, EBITDAre, and Adjusted EBITDAre are used as supplemental financial performance measures by management and by external users of our financial statements, such as investors and commercial banks. Set forth below is additional detail on how management uses EBITDA, EBITDAre, and Adjusted EBITDAre as measures of performance. The GAAP measure most directly comparable to EBITDA, EBITDAre, and Adjusted EBITDAre is net income or loss. EBITDA, EBITDAre, and Adjusted EBITDAre are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our EBITDA, EBITDAre, and Adjusted EBITDAre may not be comparable to the EBITDA, EBITDAre, and Adjusted EBITDAre of other companies due to the fact that not all companies use the same definitions of EBITDA, EBITDAre, and Adjusted EBITDAre. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. See "Reconciliation of Net Income to Adjusted EBITDAre" for a reconciliation of GAAP net income to EBITDA, EBITDAre, and Adjusted EBITDAre. Funds from Operations (FFO), Core Funds from Operations (Core FFO), and Adjusted Funds from Operations (AFFO) FFO, Core FFO, and Adjusted FFO are supplemental, non-GAAP measures often utilized to evaluate the performance of real estate companies. FFO is defined by Nareit as net income or loss (computed in accordance with GAAP) excluding gains or losses from sales of previously depreciated real estate assets, plus depreciation, amortization and impairment of real estate assets, and adjustments for unconsolidated joint ventures. We define Core FFO as FFO adjusted for the following: non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives; share-based compensation expense; legal settlements; business reorganization costs; casualty (gains) losses and reserves, net; amortization of intangible assets; and (gains) losses on investments in equity and other securities, net, as applicable. We define Adjusted FFO as Core FFO less Recurring Capital Expenditures that are necessary to help preserve the value and maintain the functionality of our homes. Where appropriate, FFO, Core FFO, and Adjusted FFO are adjusted for our share of investments in unconsolidated joint ventures. We believe that FFO is a meaningful supplemental measure of the operating performance of our business because historical cost accounting for real estate assets in accordance with GAAP assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization. Because real estate values have historically risen or fallen with market conditions, management considers FFO an appropriate supplemental performance measure as it excludes historical cost depreciation and amortization, impairment on depreciated real estate investments, gains or losses related to sales of previously depreciated homes, as well non-controlling interests, from GAAP net income or loss. We believe that Core FFO and Adjusted FFO are also meaningful supplemental measures of our operating performance for the same reasons as FFO and are further helpful to investors as they provide a more consistent measurement of our performance across reporting periods by removing the impact of certain items that are not comparable from period to period. The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. FFO, Core FFO, and Adjusted FFO are not used as measures of our liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our FFO, Core FFO, and Adjusted FFO may not be comparable to the FFO, Core FFO, and Adjusted FFO of other companies due to the fact that not all companies use the same definition of FFO, Core FFO, and Adjusted FFO. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other companies. See "Reconciliation of FFO, Core FFO, and Adjusted FFO" for a reconciliation of GAAP net income to FFO, Core FFO, and Adjusted FFO. Net Operating Income (NOI) NOI is a non-GAAP measure often used to evaluate the performance of real estate companies. We define NOI for an identified population of homes as rental revenues and other property income less property operating and maintenance expense (which consists primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, repairs and maintenance, leasing costs, and marketing expense). NOI excludes: interest expense; depreciation and amortization; property management expense; general and administrative expense; impairment and other; gain on sale of property, net of tax; (gains) losses on investments in equity securities, net; other income and expenses; management fee revenues; and (income) losses from investments in unconsolidated joint ventures. The GAAP measure most directly comparable to NOI is net income or loss. NOI is not used as a measure of liquidity and should not be considered as an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our NOI may not be comparable to the NOI of other companies due to the fact that not all companies use the same definition of NOI. Accordingly, there can be no assurance that our basis for computing this non-GAAP measure is comparable with that of other companies. We believe that Same Store NOI is also a meaningful supplemental measure of our operating performance for the same reasons as NOI and is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by reflecting NOI for homes in our Same Store Portfolio. See "Reconciliation of Net Income to Same Store NOI" for a reconciliation of GAAP net income to NOI for our total portfolio and NOI for our Same Store Portfolio. Recurring Capital Expenditures or Recurring CapEx Recurring Capital Expenditures or Recurring CapEx represents general replacements and expenditures required to preserve and maintain the value and functionality of a home and our systems as a single-family rental. Rental Rate Growth Rental rate growth for any home represents the percentage difference between the monthly rent from an expiring lease and the monthly rent from the next lease, and, in each case, reflects the impact of any amortized non-service rent concessions and amortized contractual rent increases. Leases are either renewal leases, where our current resident chooses to stay for a subsequent lease term, or a new lease, where our previous resident moves out and a new resident signs a lease to occupy the same home. Same Store / Same Store Portfolio Same Store or Same Store portfolio includes, for a given reporting period, wholly owned homes that have been stabilized and seasoned, excluding homes that have been sold, homes that have been identified for sale to an owner occupant and have become vacant, homes that have been deemed inoperable or significantly impaired by casualty loss events or force majeure, homes acquired in portfolio transactions that are deemed not to have undergone renovations of sufficiently similar quality and characteristics as our existing Same Store portfolio, and homes in markets that we have announced an intent to exit where we no longer operate a significant number of homes. Homes are considered stabilized if they have (i) completed an initial renovation and (ii) entered into at least one post-initial renovation lease. An acquired portfolio that is both leased and deemed to be of sufficiently similar quality and characteristics as our existing Same Store portfolio may be considered stabilized at the time of acquisition. Homes are considered to be seasoned once they have been stabilized for at least 15 months prior to January 1st of the year in which the Same Store portfolio was established. We believe presenting information about the portion of our portfolio that has been fully operational for the entirety of a given reporting period and our prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods and about trends in our organic business. Total Homes / Total Portfolio Total homes or total portfolio refers to the total number of homes owned, whether or not stabilized, and excludes any properties previously acquired in purchases that have been subsequently rescinded or vacated. Unless otherwise indicated, total homes or total portfolio refers to the wholly owned homes and excludes homes owned in joint ventures. Turnover Rate Turnover rate represents the number of instances that homes in an identified population become unoccupied in a given period, divided by the number of homes in such population. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729081547/en/ Contacts Investor Relations Contact Scott McLaughlin844.456.INVH (4684)[email protected] Media Relations Contact Kristi DesJarlais844.456.INVH (4684)[email protected]

Invitation Homes INVH is slated to report second-quarter 2026 results on July 29, after market close. The company’s quarterly results are likely to highlight year-over-year increases in revenues and funds from operations (FFO) per share. In the last reported quarter, this residential real estate investment trust (REIT) posted a core FFO per share of 48 cents, meeting the Zacks Consensus Estimate. Results reflected firm operating momentum, with higher blended rentals and improved leasing trends. Over the preceding four quarters, INVH’s core FFO per share met the Zacks Consensus Estimate on all occasions, with the average beat being 0.00%. The graph below depicts this surprise history: Invitation Home price-eps-surprise | Invitation Home Quote In this article, we will dive deep into the U.S. apartment market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance. The U.S. multifamily market entered the second half of 2026 with a clearer recovery taking shape, as strong renter demand and a rapidly shrinking supply pipeline began translating into lower vacancy and improving rent growth. According to a Cushman & Wakefield report, net absorption reached roughly 124,600 units, up from 83,500 units in the first quarter and 8% above the prior year, making it the fifth-strongest quarter in nearly 25 years. The supply picture also became more favorable. Approximately 88,000 units were delivered during the quarter, down 27% year over year. Around 475,000 units remained under construction at quarter-end, equal to just 3.5% of existing inventory. Improving demand and slowing supply pushed the national vacancy rate down 35 basis points quarter over quarter to 8.9%, its first move below 9% since 2024. On a trailing four-quarter basis, absorption of approximately 362,000 units exceeded deliveries of about 358,000 units for the first time since early 2022, indicating vacancy is likely to have passed its cyclical peak. The recovery was particularly pronounced in previously overbuilt markets: Austin; Charleston, SC; Savannah, GA; Huntsville, AL; Salt Lake City, UT, and Colorado Springs recorded some of the largest quarterly vacancy declines. Rent growth remains modest but is beginning to improve. National asking rents reached approximately $1,945 per month, up 1.5% year over year, compared with 1.1% growth in the first quarter. The Bay Area led the recovery, with San Francisco rents rising 13%, San Jose 7% and the East Bay 4.8%. Norfolk, VA; Toledo, OH; Reno, NV, and Boise, ID, also posted strong gains. High-supply markets remained softer, with rents still declining in Austin and Sarasota, FL, although the pace of those declines moderated as excess supply was absorbed. Overall, the market appears to be shifting from stabilization into an occupancy-led recovery, with broader rent growth likely as the construction pipeline continues to shrink. Invitation Homes’ second-quarter 2026 performance is likely to have benefited from stronger peak-season leasing trends, improving occupancy and steady renewal pricing. Management said April occupancy accelerated to 97.1%, up 80 basis points from the first-quarter average, while new lease rent growth returned to positive territory at just under 0.5%. Renewal rent growth remained in the low-3% range, lifting blended rent growth to 2.3%. These trends suggest that same-store revenue growth may have improved from the first quarter as demand remained healthy and available rental supply moderated. Renewals should remain the key support, with management expecting mid-3% to mid-4% renewal growth through the year. New lease pricing is likely to have strengthened further through late second quarter as the gap with renewal rates narrowed during the peak leasing season. For the second quarter, the Zacks Consensus Estimate for INVH’s rental revenues currently stands at $669.3 million, up from $592.5 million reported in the prior-year period. The Zacks Consensus Estimate for second-quarter total revenues is pegged at $714.3 million, indicating a rise of 4.8% from the year-ago reported number. However, elevated inventory in some markets could still have limited pricing power, making occupancy preservation important. Invitation Homes’ activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 49 cents over the past two months. However, the figure suggests an improvement of 2.1% year over year. Our proven model does not conclusively predict a surprise in terms of FFO per share for INVH this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here. Invitation Homes currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the broader REIT sector — Extra Space Storage EXR and Cousins Properties CUZ— you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter. Extra Space Storage is slated to report quarterly numbers on July 28. EXR has an Earnings ESP of +0.39% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Cousins is slated to report quarterly numbers on July 30. CUZ has an Earnings ESP of +0.45% and a Zacks Rank of 3 at present. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invitation Home (INVH) : Free Stock Analysis Report Cousins Properties Incorporated (CUZ) : Free Stock Analysis Report Extra Space Storage Inc (EXR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Equity Residential EQR reported second-quarter 2026 normalized funds from operations of $1.02 per share, which beat the Zacks Consensus Estimate of $1.01 and rose 3% year over year. Rental income increased 2.1% to $785.05 million but missed the Zacks Consensus Estimate marginally. Results reflected higher same-store net operating income (NOI) supported by strong physical occupancy and better-than-anticipated renewal rates achieved. The company raised the midpoint of 2026 same-store revenue and NOI guidance. Same-store residential revenues rose 2.1%, supported by firm occupancy and better-than-anticipated renewal pricing. San Francisco and New York remained the strongest markets. Total same-store revenues increased 1.9% year over year, while expenses rose 3%. Same-store NOI advanced 1.4%. Physical occupancy was 96.2% compared with 96.6% in the prior-year quarter. We estimated the same to be 96.5%. Same-store residential lease rates grew 1.8%. Higher ancillary income, utility recoveries and other items added 0.5% to revenue growth, while improved net bad debt contributed 0.2%. Vacancy reduced growth by 0.3%, and leasing concessions lowered it by 0.1%. Renewal pricing remained the primary support for rent growth. The renewal rate achieved was 5.2% in the second quarter compared with 5.1% a year earlier. New-lease rates declined 0.7%, resulting in blended rate growth of 2.8%. Preliminary July data showed further progress. Blended rate growth accelerated to 3%, as new-lease change improved to negative 0.1%. Renewal rates remained healthy at 4.9%, while physical occupancy held at 96.2%. Net effective asking rents were up roughly 7.5% from the beginning of 2026. San Francisco continued to outperform expectations. Strong demand drove a 6.5% increase in average rental rates, higher physical occupancy and very low turnover. New York also benefited from limited new supply and strong demand, producing a 4.3% increase in average rental rates. Performance was softer in Washington, D.C., where a muted labor market weighed on demand. Los Angeles and Seattle entered the primary leasing season with weaker demand, leading to greater concession use, lower occupancy and softer blended rates. Expansion markets continued to absorb elevated available inventory. During the quarter, the company sold two properties containing 515 apartment units for approximately $164 million. The properties, located in Los Angeles and San Francisco, were sold at a weighted-average disposition yield of 5.3%. EQR did not acquire any properties. The company completed a 440-unit partially owned development in suburban Boston at a total cost of approximately $232.2 million. It also completed an unconsolidated 369-unit development in suburban Seattle costing approximately $185.3 million. The portfolio ended June with 312 properties and 85,520 apartment units. EQR and AvalonBay Communities agreed to an all-stock merger of equals that would create a company with more than 180,000 apartments and an enterprise value of approximately $71 billion. The companies expect $175 million of annual gross synergies within 18 months before projected real estate tax reassessments. Management raised the midpoint of its full-year same-store revenue growth outlook by 20 basis points. The revised range is 2.1%-2.7% compared with the previous range of 1.2%-3.2%. The improvement reflects stronger San Francisco momentum and better net bad-debt trends. The company suspended its full-year EPS, FFO and core FFO outlook because of the proposed merger with AvalonBay Communities. The midpoint of the same-store NOI growth forecast increased 30 basis points. EQR now expects growth of 1.5%-2.1% versus the prior range of 0.5%-2.5%. The expense growth outlook remains 3%-4%, while expected physical occupancy was adjusted to 96.3% from 96.4%. EQR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Equity Residential price-consensus-eps-surprise-chart | Equity Residential Quote We now look forward to the earnings releases of other residential REITs, such as Essex Property Trust ESS and Invitation Homes INVH, which are slated to report on July 29. The Zacks Consensus Estimate for Essex Property’s second-quarter 2026 FFO per share is pegged at $4.03, which implies flat growth year over year. ESS currently carries a Zacks Rank #3. The Zacks Consensus Estimate for INVH’s second-quarter 2026 FFO per share is pegged at 49 cents, which suggests a year-over-year increase of 2.1%. INVH currently carries a Zacks Rank #3. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equity Residential (EQR) : Free Stock Analysis Report Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report Invitation Home (INVH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research