Invitation Homes Inc. Q1 FY2026 earnings call

• Dallas thanked associates and residents, noted first quarter results in line with expectations, accelerated occupancy, and improving leasing momentum. • Spent time advocating for industry and residents in Washington, D.C. • Completed $500 million share repurchase authorization, Board approved new $500 million repurchase. • Forward pipeline for third-party homebuilder partnerships at over $200 million, reduced from a year ago. • ResiBuilt acquisition integrated and delivering homes, construction lending business at $279 million commitments. • Tim walked through operating results, noted occupancy normalization, revenue and expense details, and April leasing trends showing improvement. • Jonathan discussed earnings results, capital allocation including strong disposition activity and share repurchases, balance sheet strength, and guidance maintenance.

Same store core revenue grew 1.6% year-over-year. Core operating expenses grew 5.7%, and same store NOI was down 0.3%. Renewal rent growth was 3.7%, new lease rent growth was -3%, blended rent growth 1.6%. Same store occupancy averaged 96.3% for the quarter, improved to 97.1% in April. Bad debt remained low at 60 basis points. First quarter same store expenses grew 5.7% year-over-year due to prior year factors, but full-year expense guidance 3% - 4% remains intact. Disposition volume in Q1 was 483 homes sold for $206 million.

• Maintaining full-year outlook provided in February. • Disposition volume tracking ahead of initial expectations, accelerating stock buyback pace. • Insurance renewal came in favorable relative to assumptions. • Expect to provide more details once majority of peak leasing season is behind us.

Q: Question on renewals and leasing season strategy, A: Tim said they don't provide renewal details, seeing strong market, May like April, renewal rate growth mid-3% to mid-4% throughout year.

Q: Spread between renewal and new lease growth in certain markets, A: Tim said spreads generally narrow through peak season, renewal rates flat, new lease growth trends upward, build-to-rent and mom-and-pop inventory factors.

Q: Occupancy improvement and leading indicators, A: Tim said cautiously optimistic, demand side healthy, external funnel and internal lead volume showing health.

Q: Disposition program ramping, tax implications, A: Dallas said will continue as measured lever, Jonathan said adhere to tax and REIT rules, limited by lease renewal rate.

Q: Dispositions within markets, A: Tim said combination of factors, selling lower-quality homes not highest-quality.

Q: Market concessions on new leases, A: Tim said no same store concessions in place, use late in year, offer concessions on build-to-rent communities during lease-up.

Q: Guidance and repurchases, A: Jonathan said repurchase factored into thinking, but not hugely material, operating performance tracking closely.

Q: Demand for third-party management platform and development funding, A: Dallas said highly selective, some legislative noise could create opportunities.

Q: Occupancy level and pricing strategy, A: Tim said occupancy not known exactly where it will go, price based on market, cautiously optimistic on rent growth.

Q: Conversations with policymakers, A: Dallas said policymakers better educated, collaborative conversation, trying to solve housing supply issues.

Q: ResiBuilt and policy outcomes, A: Dallas said glass-half-full, ResiBuilt integrating, evaluating opportunities.

Q: Pared back forward purchase agreements, A: Scott said driven by cost of capital and capital allocation strategy.

Q: Pricing from sellers in higher-for-longer rate environment, A: Dallas said overall supply steady, not seen much movement in cap rates.

Q: Expenses and surprises, A: Jonathan said insurance renewal slightly favorable on nonproperty lines, tracking closely to expectations.

Q: Move-out reasons, A: Dallas said about 16%-17% move-outs due to home purchase, 25% due to life transitions