Invitation Homes Inc. (INVH) Earnings

Management highlights

### Legislative Update - The 21st Century Road to Housing Act, enacted earlier in June 2026, provides clear regulatory clarity for the SFR industry and includes provisions to speed and encourage new residential construction, a policy goal the firm fully supports - Management confirms the law allows Invitation Homes to continue its core strategy of growing through new construction and home builder partnerships, while expanding much-needed housing supply to improve affordability across U.S. markets - The firm will remain actively engaged with Treasury and HUD as implementing regulations are finalized, and continues to offer free positive credit reporting for residents to help them build credit through on-time rent payments ### Demand Fundamentals - Overall demand for single-family rental homes remains healthy, with a compelling value proposition: leasing an average Invitation Homes home is over $1,000 per month cheaper than owning a comparable home in the firm's markets, translating to over $40,000 in total savings for a typical family over the firm's average 40+ month resident tenure - Favorable long-term demographics and the convenience of professional leasing continue to support stable demand, with 65-70% of the firm's markets seeing projected net favorable migration, primarily across Sunbelt regions - New lease rate growth accelerated for six consecutive months through June 2026, with preliminary July 2026 data showing 1.2% new lease growth, 4.3% renewal growth, and 3.4% blended growth; occupancy moderated to 96.5% in July in line with normal seasonal summer move-out patterns ### Supply Dynamics - New build-to-rent deliveries have continued to decline, and overall SFR new supply growth has slowed sharply since the start of 2026, with the most previously oversupplied markets now seeing the sharpest drops in unsold new home inventory - While some markets still have excess supply to work through, the overall trend is improving, with notable supply reductions in Tampa, Orlando, and Phoenix ### Capital Allocation - The firm continued its share repurchase program in Q2 2026, buying back an additional $100 million of common stock, bringing total repurchases to $600 million since December 2025 at an average price of ~$26.30 per share (implying a ~$270,000 per home valuation, a steep discount to the 2026 year-to-date average sale price of $450,000 per home) - In Q2 2026, the firm sold 657 wholly owned homes (primarily to end users) for $309 million in gross proceeds, and acquired 196 new homes from builder partners for $74 million; dispositions have outpaced original full-year expectations, driven by attractive pricing above the public market's implied asset valuation - Early signs of a thaw in the acquisition market have emerged post-Road to Housing Act, with more sellers (particularly of smaller portfolios under $100 million) bringing assets to market after six months of inactivity due to legislative uncertainty; the pipeline for development opportunities has also re-accelerated - The firm maintains a strong balance sheet: ended Q2 2026 with over $1.5 billion in available liquidity, net debt to trailing 12-month adjusted EBITDA of 5.4x (below the 5.5x-6.0x target range), ~90% of wholly owned homes unencumbered, and nearly all debt fixed-rate or swapped to fixed - In July 2026, the firm issued $500 million of 4.95% coupon senior notes maturing in 2032, using net proceeds to prepay half of its 2017-1 securitization maturing in summer 2027 to strengthen its maturity profile

Guidance

- Full-year 2026 core FFO per share guidance midpoint was raised by 1 cent to $1.95, and AFFO per share guidance midpoint was raised by 1 cent to $1.65, reflecting stronger year-to-date operating performance and the benefit of 2026 share repurchase activity - Full-year 2026 wholly owned home disposition guidance midpoint was increased by $300 million to $850 million, driven by faster-than-expected sales activity in H1 2026 - Acquisition guidance for 2026 remains unchanged, with a midpoint of $250 million for wholly owned homes from builder partners and $100 million for acquisitions through joint ventures - Same-store core revenue and NOI growth guidance ranges were narrowed around unchanged midpoints, reflecting improved visibility into full-year 2026 performance - Management expects new lease rent growth to moderate through the second half of 2026 in line with typical seasonal trends, while renewal rent growth will remain in the 3.5%-4.5% range, consistent with historical patterns

Segment performance

Invitation Homes operates as a single-family rental (SFR) and build-to-rent (BTR) platform with three core operating segments that contributed to Q2 2026 results: 1) Core Same-Store SFR Portfolio: This segment generated 1.5% year-over-year net operating income (NOI) growth, driven by 1.6% same-store revenue growth against 1.9% operating expense growth. Average occupancy for the quarter was 97.1%, with a same-store renewal rate of 77% and average resident tenure exceeding 40 months. Controllable operating expenses were down 1% year-over-year, while fixed costs (property taxes and insurance) increased 3.5% year-over-year. Second quarter blended lease rent growth hit 2.7% (3.3% for renewals, 1.1% for new leases). 2) Development (ResiBuild): The ResiBuild development pipeline re-accelerated after earlier disruption from legislative uncertainty around the 21st Century Road to Housing Act, though Q2 2026 earnings contribution remained below original full-year expectations due to delayed/canceled project starts in H1 2026. 3) Construction Lending: Total construction loan commitments (including deals in diligence) reached just under $350 million as of Q2 2026, with 10% funded to date. These loans typically yield in the high single digits and include an option to purchase the completed BTR community, creating option value for the firm. 4) Third-Party Management: Year-to-date 2026 fee income is $4 million below original expectations, driven by a lower average home count from completed home sales on behalf of third-party clients and the absence of $2.8 million in non-recurring 2025 disposition fees. The segment is otherwise performing in line with management expectations.

Risks & headwinds

- Seasonal execution risk: Higher turnover in the second half of 2026 increases risk of delays turning over vacant homes and re-leasing them, which could pressure occupancy, revenue, and expenses; while the supply backdrop is improving, it remains elevated in some markets, adding to this execution risk - Property tax uncertainty: Property taxes represent ~55% of total operating expenses, with 70% of the total tax burden coming from three states (California, Georgia, Florida). Final 2026 property assessments have not yet been released, creating uncertainty around full-year expense levels - ResiBuild earnings shortfall risk: Legislative uncertainty around the Road to Housing Act delayed or canceled many planned ResiBuild project starts in H1 2026, so full-year 2026 earnings from the development segment will come in behind original expectations. While the pipeline is now refilling, it is unclear how much of this shortfall can be recovered in H2 2026 versus rolling into 2027 - Acquisition market uncertainty: While activity has picked up post-legislation, transaction volume remains low, and pricing for larger portfolios has not yet cleared, creating uncertainty around future accretive acquisition growth - Regulatory implementation risk: Final rulemaking for the 21st Century Road to Housing Act is still ongoing, creating uncertainty around future regulatory requirements for the industry

Analyst Q&A

• Q: After the passage of the Road to Housing Act, smaller portfolios are starting to come to market. How would you price these opportunities, how would you fund any acquisitions, and how do they stack up against other capital allocation options? /

  A: It is still very early, with only small sub-$100 million portfolios emerging and no large transactions active. Transaction volume was frozen for the first half of 2026 as sellers waited for legislative clarity, so pricing has not yet fully cleared. For the first half of 2026, share repurchases have been the highest and best use of capital given the steep discount to underlying asset value, and this will remain the case if the discount persists. Small portfolio acquisitions will only be pursued if they are accretive to shareholder value, on par or better than the returns available from buybacks. Any activity will develop slowly over the course of the year, with no large deals currently pending.

• Q: Can you update July 2026 lease rate growth, and what is your expectation for the second half of 2026 given typical seasonal trends? /

  A: Preliminary July numbers are 4.3% renewal growth, 1.2% new lease growth, and 3.4% blended growth, with August renewal growth currently tracking similarly to July. New lease growth accelerated steadily through Q2 2026 and is expected to moderate through the second half in line with normal seasonal patterns. Renewal growth, which represents 75-80% of total revenue, is expected to stay in the 3.5% to 4.5% range for the remainder of the year, consistent with the firm's stable performance. Seasonal occupancy moderation is also expected, with a typical rebound in occupancy late in the fourth quarter heading into 2027.

• Q: What unifying factors explain softer new lease performance in some markets like Florida, Phoenix, and Texas compared to markets in the Midwest? /

  A: Performance variability across markets is driven primarily by differences in supply dynamics: some markets have worked through excess inventory faster than others, even though overall supply growth is slowing nationally. Demand remains healthy across all markets, with search volume for single-family homes up slightly year-over-year and lead conversion rates improving due to new CRM and digital shopping tools that better serve prospective residents. Management is cautiously optimistic that supply will continue to moderate across all softer markets through the second half of 2026, with fundamentals gradually improving.

• Q: Following the Road to Housing Act, does your existing scattered-site infill portfolio gain incremental value, and does that change your capital recycling strategy for these assets? /

  A: Grandfathered existing scattered-site assets do carry a valuation premium under the new legislation, as they cannot be easily replicated at scale today. This does not change the core asset management strategy of selling non-core assets at attractive premiums relative to public market valuations, but it does reinforce the long-term value of the scattered-site footprint, which management views as a core competitive advantage. Scattered-site development will remain a large part of the firm's future growth strategy consistent with the rules outlined in the new law.