We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The results benefited from net operating income (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%.
INVH's Broader Revenue Mix Supports Growth
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.
Invitation Homes Posts Steady Same-Store Gains
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.
INVH's New Lease Spreads Return to Positive
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.
INVH Accelerates Dispositions and Buybacks
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.
INVH 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.
INVH Maintains Ample Financial Flexibility
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 Raises Its 2026 Outlook
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 Zacks Consensus Estimate is pinned at $1.95, which lies within the guided range.
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.
Equity Residential reported second-quarter 2026 normalized FFO per share of $1.02, beating the Zacks Consensus Estimate of $1.01. The figure improved 3% year over year.
Results reflected higher same-store NOI supported by strong physical occupancy and better-than-anticipated renewal rates achieved.
AvalonBay Communities reported second-quarter 2026 core FFO per share of $2.86, surpassing the Zacks Consensus Estimate of $2.80. Favorable same-store residential revenues and expense results drove the FFO outperformance.
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.
View the Zacks #1 Rank List
Image: Bigstock
INVH Q2 FFO Beats Estimates on NOI Growth, Revenues Top, '26 View Up
Key Takeaways
Invitation Homes Inc. (INVH - Free Report) reported second-quarter 2026 core funds from operations (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 net operating income (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%.
INVH's Broader Revenue Mix Supports Growth
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.
Invitation Homes Posts Steady Same-Store Gains
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.
INVH's New Lease Spreads Return to Positive
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.
INVH Accelerates Dispositions and Buybacks
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.
INVH 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.
INVH Maintains Ample Financial Flexibility
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 Raises Its 2026 Outlook
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 Zacks Consensus Estimate is pinned at $1.95, which lies within the guided range.
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.
INVH’s Zacks Rank
Currently, INVH carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Invitation Home Price, Consensus and EPS Surprise
Invitation Home price-consensus-eps-surprise-chart | Invitation Home Quote
Performance of Other Residential REITs
Equity Residential reported second-quarter 2026 normalized FFO per share of $1.02, beating the Zacks Consensus Estimate of $1.01. The figure improved 3% year over year.
Results reflected higher same-store NOI supported by strong physical occupancy and better-than-anticipated renewal rates achieved.
AvalonBay Communities reported second-quarter 2026 core FFO per share of $2.86, surpassing the Zacks Consensus Estimate of $2.80. Favorable same-store residential revenues and expense results drove the FFO outperformance.
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.