Invitation Homes reported a solid but slowing quarter, with FY2025 AFFO up 1.8%. The company provided a cautious 2026 outlook, expecting deceleration in same-store NOI due to supply headwinds and expense pressures. The main strategic news is the acquisition of ResiBuilt to bolster in-house development capabilities, alongside an ongoing share repurchase program funded by dispositions. INVH acquired ResiBuilt Homes, bringing in-house development capability and expanding its build-to-rent pipeline.
Invitation Homes reported a solid but slowing quarter, with FY2025 AFFO up 1.8%. The company provided a cautious 2026 outlook, expecting deceleration in same-store NOI due to supply headwinds and expense pressures. The main strategic news is the acquisition of ResiBuilt to bolster in-house development capabilities, alongside an ongoing share repurchase program funded by dispositions. INVH acquired ResiBuilt Homes, bringing in-house development capability and expanding its build-to-rent pipeline.
Invitation Homes reported a solid but slowing quarter, with FY2025 AFFO up 1.8%. The company provided a cautious 2026 outlook, expecting deceleration in same-store NOI due to supply headwinds and expense pressures. The main strategic news is the acquisition of ResiBuilt to…
Guidance · revenue to 1.9%
Guidance · revenue to 1.9%
The company plans to recycle ~$550M of dispositions into share buybacks, signaling a focus on per-share value.
Guidance for 2026 is soft, reflecting elevated supply pressures, higher expenses (insurance, advocacy), and a cautious outlook on new lease rates, tempered by stable renewals and share buybacks.
Management discussed allocating capital thoughtfully across accretive growth opportunities and share repurchases, with a $500 million buyback program and $550 million in anticipated dispositions to fund buybacks and $250 million in wholly owned new home deliveries. The ResiBuilt acquisition adds in-house development capability with a fee-build business delivering over 1,000 homes per year, expecte
Management acknowledged supply pressures and elevated costs but expressed confidence in controlling what they can, citing healthy demand and a strong balance sheet.
“our outlook incorporates approximately $550 million of dispositions at the midpoint, which we expect to serve as the primary funding source for additional share repurchases”
“it's in the general liability, excess casualty, and auto market that has become materially harder and where we think we'll see some outsized increases year over year”
“Right now, the only specials that we have going are on our build-to-rent communities”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $1.60–$1.68 | $1.64 | MAINTAINED |
| Op margin | FY2026 | 0.3%–2% | 1.15% | GUIDED |
| Revenue | FY2026 | 1.3%–2.5% | 1.9% | GUIDED |
Insurance costs are rising materially due to a hardening general liability, excess casualty, and auto market, offsetting favorable property insurance renewals. — This indicates that commercial insurance carriers are raising rates for property managers, a trend that could benefit insurers like Chubb (CB) and Progressive (PGR).
Yeah, thanks. Good morning. I was wondering if you could provide a little more commentary around your expense growth assumptions. I know that you guys did a very good job containing expenses and I think handily beat your initial expense outlook for 25. I know you've put a few assumptions around taxes and insurance for 26, but maybe just speak to some of those numbers. And they seem a little bit elevated, but maybe there's some tough comps going on. So any clarity around expense growth would be helpful. Thanks.
Yes, Steve, thanks. I think a couple things going on there. You know, with property taxes, you know, obviously the outcome in 2025 was pretty favorable relative to our guidance. I think it's worth pointing out that, you know, we had a fairly sizable good guy in Texas last year, and absent that, you know, property tax growth would have been closer to the mid-fours. So, the range we've articulated in our guidance, you know, I think is generally consistent year over year. With respect to insurance, A couple things going on there. You know, 2025 was a very favorable year for us. It creates a bit of a tougher comp. I think if you look at the property market, we think that that is going to be a very constructive renewal. It's in the general liability, excess casualty, and auto market that has become materially harder and where we think we'll see some outsized increases year over year. So when you put it together, That's the driver around the insurance expense growth. Now, our policy year runs from March 1st to March 1st, so we'll be buttoning that up in the next week and a half, and we'll have more information that we can share. Certainly looking at all the levers we can fold to try to drive a better outcome, but we're not going to change the way our program is constructed. We want to make sure that we are well insured and The insurance market has sort of ebbs and flows similar to other markets. If you look at what that implies for overall controllable expense growth or all other expense growth, I guess I should say, it's really in the range of 1% to 2%. So we think our cost controls continue to be effective. We continue to be laser focused on trying to make sure that we are being as efficient as we can be. I think the other thing I would call out with respect to expenses is something that we included in our earnings bridge. I think several of you noted it, but I would just point out that we have incorporated in our bridge an estimate of two pennies per share related to advocacy and other costs. You know, want to be clear that that is an estimate. You know, we've incurred some limited costs to date. and the timing and magnitude of any additional costs we incur is a bit of an open question. But we wanted to include something there in the bridge just to be transparent about the likelihood that there will be costs associated with navigating the current regulatory …
Despite supply headwinds, INVH has removed all concessions from its scattered-site portfolio, indicating that the worst of the demand absorption may be over. — If INVH can raise rents without concessions, it bodes well for the entire single-family rental sector, including peers like American Homes 4 Rent (AMH).
Thank you. Good morning. Thinking about your expectations for same-store blended rent growth in the mid-2% range, just curious kind of the kind of quarter to date, it sounded like, You said 1.5% so far for blended lease growth. Just how does that track, and then how are you kind of anticipating the peak leasing season to play out this year?
Yeah, thanks, John. And I'll add, look, supply and demand dictates our pricing. Supply, we talked about this on past calls, has been slightly elevated in a few of our core markets, namely Florida, Texas, and Arizona. But we are seeing those supply levels come down. And as John mentioned, our peak season really starts right after Super Bowl, goes into midsummer. We're seeing healthy demand. And we look at that through a variety of different metrics, but our lead volume remains strong, clearly a strong indicator that there is a demand for single-family housing. We will continue to see over the next couple months our spreads between renewal growth and new lease growth narrow as our new lease growth expands. Right now I'll add that we don't have any concessions on our scatter site product. We use that tool, as we have in years past, to incentivize residents during our slower season. Right now, the only specials that we have going are on our build-to-rent communities, and that's pretty customary for developers and investors during lease-up to achieve stabilization. So we're really happy with the supply and demand fundamentals as they're heading into peak season right now.