The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the information appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K. This discussion and analysis contains forward-looking statements based upon our current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K.
Capitalized terms used without definition have the meaning provided elsewhere in this Quarterly Report on Form 10-Q.
Overview
Invitation Homes is a leading owner and operator of single-family homes for lease, offering residents high-quality homes in sought-after neighborhoods across the United States. As of June 30, 2026, we wholly own 85,509 homes for lease, jointly own 8,069 homes for lease, and provide professional third-party property and asset management services for an additional 15,639 homes, all of which are primarily located in 16 core markets across the country. These homes help meet the needs of a growing share of Americans who count on the ease, flexibility, and savings of leasing. We provide our residents access to updated homes with features they value, as well as close proximity to jobs and good schools. The continued demand for our product proves that the choice and flexibility we offer are attractive to many people.
We operate in markets with strong demand drivers, high barriers to entry, and high rent growth potential, primarily in the Western United States, Florida, and the Southeast United States. Through disciplined market and asset selection, as well as through strategic mergers and acquisitions, we designed our wholly and jointly owned portfolios to capture the operating benefits of local density as well as economies of scale that we believe cannot be readily replicated. Since our founding in 2012, we have built a proven, vertically integrated operating platform that enables us to effectively and efficiently acquire, renovate, lease, maintain, and manage both the homes we own and those we manage on behalf of others.
The portfolio of homes we own average approximately 1,880 square feet with three to four bedrooms and two bathrooms, appealing to a resident base that we believe is less transitory than a typical multifamily resident. We invest in the upfront renovation of homes in our portfolio in order to address capital needs, reduce ongoing maintenance costs, and drive resident demand.
We are committed to increasing the supply of quality housing in the markets where we operate. We believe that the United States faces a meaningful shortage of housing, and we are taking steps to address this challenge through multiple channels, including acquiring newly built homes from homebuilders, developing homes through our in-house development arm, and extending financing to experienced developers through our construction lending channel.
On January 14, 2026, we acquired ResiBuilt Homes, LLC (“ResiBuilt”), a leading fee homebuilder specializing in single-family rental communities with expertise in land development and construction general contracting across high-growth Southeast markets. The acquisition is a natural extension of our business and supports our growth strategy by adding homebuilding capabilities to our platform. By bringing land development and construction expertise in-house, we gain greater operational control over the development process, enhance cost efficiency, and strengthen our ability to execute on growth opportunities in strategically important markets. We believe this internal development capacity will support our long-term growth strategy by providing a reliable pipeline of purpose-built rental homes tailored to our operational and quality standards.
In May 2025, we launched a developer lending program to selectively provide financing to experienced, successful, and relationship-driven homebuilders for the development of new single-family home communities that may serve as future acquisition opportunities. This initiative is intended to support the creation of new housing supply in markets with strong demand and to complement our traditional property acquisition strategy. Together, these initiatives reflect our broader commitment to expanding housing supply and availability while creating attractive growth opportunities for our business.
At Invitation Homes, we are committed to creating a better way to live and to being a force for positive change, which is underscored by our company purpose to Unlock the Power of Home™. Our Genuine CARE™ values serve as the foundation for our work, and the underlying principles of clear communication, integrity, responsibility, innovation, adaptability, and a welcoming workplace are designed to create an authentic experience for our residents, shareholders, and associates. We also work to advance sustainability, which is an important part of our strategic business objectives and is critical to our long-term success.
45
Our commitment to high-touch customer service continuously enhances residents’ living experiences and provides an environment where individuals and families can thrive. Many of our residents are first responders, healthcare workers, teachers, and other essential members of their communities, people who dedicate themselves to serving others every day. We are honored to serve them in return, and we work hard to ensure they come home to a place of comfort and security. Each aspect of our operations — whether in our corporate headquarters or field offices located in our 16 core markets — is driven by a resident-centric model. Our associates take our values seriously and work hard every day to honor the trust our residents have placed in us to provide clean, safe, and functional homes for them and their loved ones. In turn, we focus on ensuring that our associates are fairly compensated and that we provide a culture that values respect, opportunity, and belonging. We also place a strong emphasis on the impact we have in our communities and on the environment in general, and we continue to support programs that demonstrate those commitments. In addition, we operate under strong, well-defined governance practices and are dedicated to adhering to the highest ethical standards at all times.
Impact of Macroeconomic Trends
General economic conditions in the United States have continued to fluctuate in recent quarters. While inflationary pressures have moderated from prior peaks, they remain elevated, and interest rates remain subject to volatility and uncertainty. These factors, together with ongoing uncertainty in financial and capital markets, geopolitical tensions, evolving trade and tariff policies, labor market conditions, and a general decline in consumer confidence could adversely affect (i) our occupancy levels, rental rates, and collections, (ii) our ability to acquire or dispose of properties on economically favorable terms, (iii) our access to financial markets on attractive terms, or at all, (iv) the value of our homes and our business that could cause us to recognize impairments in the value of our tangible assets or goodwill, and (v) demand for our land development, fee-building, and build-to-rent operations along with our construction and development lending activities. Broader inflationary pressures and market conditions may contribute to increases in operating costs that are outside of our control, including property taxes, utilities, and insurance costs (including higher premiums and deductibles, more restrictive terms, or reduced availability of coverage), which could adversely affect our results of operations. In addition, consumer confidence and spending may decline in response to changes in fiscal and monetary policy, reductions in income or asset values, and other macroeconomic factors. Labor shortages and inflationary increases in labor and material costs have impacted and may continue to impact certain aspects of our business. Imposition or increase of tariffs and trade restrictions by the United States on imports from certain countries and counter tariffs in response could lead to increased costs and supply chain disruptions. Any of these factors could have a material adverse effect on our business and results of operations, as well as on the price of our common stock.
The regulatory landscape affecting institutional ownership and acquisition of single-family rental properties continues to evolve. Executive actions, and potential federal and state legislation or regulations, aimed at limiting institutional ownership and acquisition of single-family homes, including but not limited to the 21st Century ROAD to Housing Act that became federal law on July 11, 2026 (the “Housing Act”), could limit our ability to acquire additional homes, require us to modify our growth, investment, development, or disposition strategies, reduce the scale or efficiency of our operations, increase compliance costs, subject us to increased regulatory scrutiny, or otherwise adversely affect market dynamics, our business, and results of operations, financial condition, or cash flows. In addition, expanded tenant-protection and rent regulation requirements (whether enacted or proposed) could increase operating costs, reduce revenue, limit operational flexibility, and increase litigation and regulatory enforcement risk. The legislative uncertainty stemming from the various iterations of the Housing Act has also caused prospective institutional purchasers to defer or curtail acquisition activity, reducing demand for build-to-rent communities and fee-build operations, as well as the need for construction and development lending. To the extent institutional demand remains constrained, our revenues, margins, and returns on invested capital in these business activities could be materially adversely affected, and if institutional capital is redirected away from single-family housing, our ability to maintain a pipeline of controlled lots on favorable terms through joint ventures, land banking arrangements, or similar structures could be impaired. Even where final legislation preserves exemptions for build-to-rent development, the implementing regulatory framework may impose compliance costs or operational constraints that diminish the attractiveness of these programs to us, institutional investors, or our partners, and there can be no assurance that current exemptions will be maintained or that future legislative or regulatory action will not further restrict institutional participation in the single-family housing market.
While the degree to which we may continue to be affected by these macroeconomic challenges largely depends on the nature and duration of uncertain and unpredictable events, we believe that we are well suited to endure a shifting macroeconomic environment due to our diversification and resiliency. For further discussion of risks related to general economic conditions, see Part I. Item 1A. “Risk Factors — Risks Related to Our Business Environment and Industry — Our
46
operating results are subject to general economic conditions and risks associated with our real estate assets” of our Annual Report on Form 10-K.
Climate Change
Potential consequences of global climate change may range from more frequent extreme weather events to governmental policy developments and shifts in consumer preferences, which have the potential individually or collectively to disrupt our business as well as negatively affect our suppliers, contractors, and residents. Physical, regulatory, and transition risks from climate change may significantly reduce our revenues and profitability or cause us to generate losses. We are subject to evolving laws and regulations relating to climate change, including regulations aimed at drastically increasing reporting and governance related to climate change as well as focused on limiting greenhouse gas emissions.
Evolving laws and regulations or any changed interpretation of such laws and regulations may require us to make costly improvements to our properties resulting in increased operating costs and compliance burdens. Choosing not to enhance our homes’ resource efficiency could make our portfolio less attractive to residents and investors. If we fail to manage transition risks effectively, our profitability and cash flow could suffer.
We recognize that climate change could have a significant impact on our portfolio of homes and that an increase in the number of acute weather events, natural disasters, and other climate-related events could significantly impact our business, operations, and homes. We consider physical risks, including the potential for natural disasters such as hurricanes, floods, and wildfires, when assessing our portfolio of homes and our business processes.
Our management and the board of directors are focused on managing our business risks, including climate change-related risks. The process to identify, manage, and integrate climate-change risk is part of our comprehensive enterprise risk management program. Our board of directors, through its Audit Committee and Nominating and Corporate Governance Committee, is responsible for oversight of our management of risks related to environmental issues, climate related risks, and social issues. For more information on risks related to climate change, see Part I. Item 1A. “Risk Factors — Risks Related to Sustainability, Corporate Responsibility, and Governance — Climate change and related environmental issues, related legislative and regulatory responses to climate change, and the transition to a lower-carbon economy may adversely affect our business, — We are subject to risks from natural disasters such as earthquakes, wildfires, and severe weather, and — We are subject to increasing scrutiny from investors and others regarding our sustainability responsibilities, which could result in additional costs or risks and adversely impact our reputation, associate attraction and retention, and ability to raise capital” of our Annual Report on Form 10-K.
47
Our Portfolio
The following table provides summary information regarding our total and Same Store portfolios as of and for the three months ended June 30, 2026 as noted below:
Market Number of Homes(1) Average Occupancy(2) Average Monthly Rent(3) Average Monthly Rent PSF(3) % of Revenue(4)
Western United States:
Southern California 6,834 96.0% $3,276 $1.91 10.5 %
Northern California 3,889 96.7% 2,832 1.79 5.3 %
Seattle 3,869 97.4% 3,004 1.57 5.6 %
Phoenix 9,160 96.7% 2,086 1.23 9.2 %
Las Vegas 3,378 97.0% 2,275 1.16 3.6 %
Denver 3,038 94.8% 2,634 1.43 3.7 %
Western United States Subtotal 30,168 96.5% 2,647 1.50 37.9 %
Florida:
South Florida 7,841 95.7% 3,170 1.70 11.6 %
Tampa 9,610 95.5% 2,295 1.22 10.8 %
Orlando 7,050 95.3% 2,299 1.23 7.8 %
Jacksonville 2,133 96.5% 2,196 1.12 2.3 %
Florida Subtotal 26,634 95.6% 2,547 1.35 32.5 %
Southeast United States:
Atlanta 12,561 95.8% 2,133 1.03 12.7 %
Carolinas 6,130 96.1% 2,127 1.02 6.2 %
Southeast United States Subtotal 18,691 95.9% 2,131 1.02 18.9 %
Texas:
Houston 2,594 94.8% 1,939 0.98 2.4 %
Dallas 3,546 94.2% 2,238 1.11 3.8 %
Texas Subtotal 6,140 94.5% 2,111 1.06 6.2 %
Midwest United States:
Chicago 2,429 96.2% 2,622 1.63 2.9 %
Minneapolis 1,024 95.9% 2,499 1.28 1.2 %
Midwest United States Subtotal 3,453 96.1% 2,586 1.51 4.1 %
Other(5): 423 89.6% 1,993 1.05 0.4 %
Total / Average 85,509 95.9% $2,460 $1.31 100.0 %
Same Store Total / Average 77,326 97.1% $2,480 $1.32 91.9 %
(1)As of June 30, 2026.
(2)Represents average occupancy for the three months ended June 30, 2026.
(3)Represents average monthly rent for the three months ended June 30, 2026.
(4)Represents the percentage of rental revenues and other property income generated in each market for the three months ended June 30, 2026.
(5)As of June 30, 2026, represents homes located in San Antonio, Salt Lake City, Austin, and Nashville, outside of our 16 core markets.
48
Factors That Affect Our Results of Operations and Financial Condition
Our results of operations and financial condition are affected by numerous factors, many of which are beyond our control. See Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K for more information regarding factors that could materially adversely affect our results of operations and financial condition. Key factors that impact our results of operations and financial condition include market fundamentals, rental rates and occupancy levels, collection rates, turnover rates and days to re-resident homes, property improvements and maintenance, property acquisitions and renovations, and financing arrangements. Sensitivity to many of these factors has been heightened as a result of current macroeconomic conditions, including inflation, interest rate volatility, political dissension, labor market conditions, disruptions in financial markets (including events affecting financial institutions), evolving regulatory landscape affecting institutional ownership and acquisition of single-family rental properties, and increasing technology and data risks. Additionally, each of these factors may also impact the results of operations and financial condition of our joint venture investments and those of third parties for whom we perform property and asset management services, which would impact the amount of management fee revenues and income (losses) from investments in unconsolidated joint ventures that we earn.
Market Fundamentals: Our results are impacted by housing market fundamentals and supply and demand conditions in our markets, particularly in the Western United States and Florida, which represented 70.4% of our rental revenues and other property income during the three months ended June 30, 2026. We actively monitor the impact of macroeconomic conditions on market fundamentals and quickly implement changes in pricing as market fundamentals shift.
Rental Rates and Occupancy Levels: Rental rates and occupancy levels are primary drivers of rental revenues and other property income. Our rental rates and occupancy levels are affected by macroeconomic factors and local and property-level factors, including market conditions, tenant-protection, rent control, and rent stabilization laws and regulations, seasonality, resident defaults, and the amount of time it takes to prepare a home for its next resident and re-lease homes when residents vacate. An important driver of rental rate growth is our ability to increase monthly rents from expiring leases, which typically have a term of one to two years.
Collection Rates: Our rental revenues and other property income are impacted by the rate at which we collect such revenues from our residents. Despite our efforts to assist residents facing financial hardships who need flexibility to fulfill their lease obligations, a portion of amounts receivable may not ultimately be collected. We may also be constrained in our ability to collect resident receivables due to local ordinances restricting residential lease compliance options. Any amounts billed to residents that have been deemed uncollectible along with our estimate of amounts that may ultimately be uncollectible decrease our rental revenues and other property income. In addition, expanded tenant-protection and rent regulation requirements and other legal restrictions affecting notices, fees, or enforcement remedies could adversely affect collections and increase related operating costs.
Turnover Rates and Days to Re-Resident: Other drivers of rental revenues and property operating and maintenance expense include the length of stay of our residents, resident turnover rates, and the number of days a home is unoccupied between residents. Our operating results are also impacted by the amount of time it takes to market and lease a property, which is a component of the number of days a home is unoccupied between residents. The period of time to market and lease a property can vary greatly and is impacted by local demand, our marketing techniques, the size of our available inventory, the ability of our suppliers and other business partners to carry out their assigned tasks and/or source labor or supply materials at ordinary levels of performance relative to the conduct of our business, and both current economic conditions and future economic outlook, including the impact of inflation, elevated interest rates, political dissension, and labor shortfalls which could adversely affect demand for our properties.
Property Improvements and Maintenance: Property improvements and maintenance impact capital expenditures, property operating and maintenance expense, and rental revenues. We actively manage our homes on a total portfolio basis to determine what capital and maintenance needs may be required and what opportunities we may have to generate additional revenues or expense savings from such expenditures. As a result of inflationary trends and/or imposition of or increases in tariffs, we may experience, as we have in the past, increased costs for certain materials and services necessary to improve and maintain our homes. We continue to actively manage the impact of these factors on these costs, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally. Our property improvement and maintenance costs could also increase due to severe weather events or other casualty events, as well as increasing insurance premiums, deductibles, or reduced insurance availability.
Property Development, Acquisitions, and Renovations: Future growth in rental revenues and other property income may be impacted by our ability to and the pace at which we identify and build or acquire homes and the time and cost
49
required to renovate and lease those homes. We are also developing build-to-rent homes through third-party homebuilders and our ResiBuilt business, acquired in January 2026. Opportunities from these new construction channels are impacted by the availability of vacant developed lots, development land assets, and inventory of homes currently under construction or newly developed.
Our ability to identify and acquire single-family homes that meet our investment criteria is impacted by home prices in targeted acquisition locations, the inventory of homes available for sale through our acquisition channels, and competition for our target assets. All of these factors may be negatively impacted by current inflationary trends and elevated interest rates, potentially reducing the number of homes we acquire. The evolving regulatory landscape affecting institutional ownership and acquisition of single-family rental properties could also limit our ability to acquire additional homes.
The acquisition of homes involves expenditures in addition to payment of the purchase price, including payments for acquisition fees, property inspections, closing costs, title insurance, transfer taxes, recording fees, broker commissions, property taxes, and HOA fees (when applicable). Additionally, we incur costs to renovate acquired homes to prepare them for rent. The time and cost involved in preparing acquired homes for rent can significantly impact our financial performance. As a result of inflationary trends and/or imposition of or increases in tariffs, we may experience, as we have in the past, increased costs for certain materials and services necessary to renovate our homes. We continue to actively manage the cost of renovations, and we believe we are able to purchase goods and services at favorable prices compared to other purchasers due to our size and scale both nationally and locally.
Financing Arrangements: Financing arrangements directly impact our interest expense, our various debt instruments, and our ability to acquire and renovate homes. We have historically utilized indebtedness to fund the acquisition and renovation of new homes. Our current financing arrangements contain financial covenants and other terms and conditions, including variable interest rates in some cases, that are impacted by market conditions. Current macroeconomic conditions may continue to negatively affect volatility, availability of funds, and transaction costs (including interest rates) within financial markets. These factors may also negatively affect our ability to access financial markets as well as our business, results of operations, and financial condition. Financial market uncertainty (including as a result of events affecting financial institutions) could also adversely affect credit availability and pricing. See Part I. Item 3. “Quantitative and Qualitative Disclosures about Market Risk” for further discussion regarding interest rate risk. Our future financing arrangements may not have similar terms with respect to amounts, interest rates, financial covenants, and durations.
Macroeconomic Conditions: Inflation, interest rate volatility, political dissension, labor market conditions, the evolving regulatory landscape affecting institutional ownership and acquisition of single-family rental properties, and adverse global economic conditions could negatively affect our business and financial condition. Imposition of, increases in, and changing policies around tariffs by the United States on imports from certain countries and potential counter tariffs in response could lead to increased costs and supply chain disruptions. If we are not able to navigate any such changes, they could have a material adverse effect on our business and results of operations, as well as on the price of our common stock. In addition, increases in property taxes and insurance costs could adversely affect our results of operations.
Regulatory and Policy Risks: Executive actions, and potential federal and state legislation or regulations, aimed at limiting institutional ownership and acquisition of single-family homes, including but not limited to the Housing Act, could limit our ability to acquire additional homes, require us to modify our growth, investment, development, or disposition strategies, reduce the scale or efficiency of our operations, increase compliance costs, subject us to increased regulatory scrutiny, or otherwise adversely affect market dynamics, our business, and results of operations, financial condition, or cash flows. In addition, expanded tenant-protection and rent regulation requirements (whether enacted or proposed) could increase operating costs, reduce revenue, limit operational flexibility, and increase litigation and regulatory enforcement risk. As this policy landscape continues to evolve, we remain committed to working constructively with policymakers at all levels to support housing supply and availability, and we believe that well-managed, professionally operated rental housing serves an important role in expanding access to quality homes for American families.
Technology and Data Risks: Our business is dependent on information technology systems and third-party service providers, and evolving technologies (including the development and use of AI) may introduce operational, cybersecurity, and compliance risks that could adversely affect our business, results of operations, and financial condition.
50
Components of Revenues and Expenses
The following is a description of the components of our revenues and expenses.
Revenues
Rental Revenues and Other Property Income
Rental revenues, net of any concessions and bad debt (including write-offs, credit reserves, and uncollectible amounts), consist of rents collected under lease agreements related to our single-family homes for lease. We enter into leases directly with our residents, and the leases typically have a term of one to two years.
Other property income is comprised of: (i) resident reimbursements for utilities, HOA fines, and other charge-backs; (ii) revenues from value-add services such as smart homes, internet and media packages, home liability insurance, and HVAC replacement filters; (iii) various other fees, including late fees and lease termination fees, among others; and (iv) rent and non-refundable deposits associated with pets.
Management Fee Revenues
Management fee revenues consist of fees from property and asset management services provided to portfolio owners of single-family homes for lease, including investments in our unconsolidated joint ventures.
Homebuilding Revenues
Homebuilding revenues consist of revenue recognized as progress is made toward completion of contractual performance obligations associated with the construction of single-family residential properties for third‑party fee-build customers.
Expenses
Property Operating and Maintenance
Once a property is available for its initial lease, which we refer to as “rent-ready,” we incur ongoing property-related expenses, which consist primarily of property taxes, insurance, HOA fees (when applicable), market-level personnel expenses, utility expenses, repairs and maintenance, and property administration. Prior to a property being “rent-ready,” certain of these expenses are capitalized as building and improvements. Once a property is “rent-ready,” expenditures for ordinary repairs and maintenance thereafter are expensed as incurred, and we capitalize expenditures that improve or extend the life of a home.
Property Management Expense
Property management expense represents personnel and other costs associated with the oversight and management of our portfolio of homes, including those for which we provide property and asset management services on behalf of others through our internal property manager.
Homebuilding Cost of Sales
Homebuilding cost of sales includes labor, materials, and other direct and indirect costs incurred in connection with the construction of single-family residential properties for third‑party fee-build customers.
General and Administrative
General and administrative expense represents personnel costs, professional fees, and other costs associated with our day-to-day activities. General and administrative expense may also include expenses that are of a non-recurring nature, such as business reorganization costs.
51
Share-Based Compensation Expense
We issue share-based awards to align the interests of our associates with those of our investors, and all share-based compensation expense is recognized in our condensed consolidated statements of operations as components of general and administrative expense and property management expense.
Interest Expense
Interest expense includes interest payable on our debt instruments, payments and receipts related to our interest rate swap agreements, amortization of discounts and deferred financing costs, unrealized gains (losses) on non-designated hedging instruments, and non-cash interest expense related to our interest rate swap agreements.
Depreciation and Amortization
We recognize depreciation expense associated with our homes and other capital expenditures and amortization of intangible assets over the expected useful lives of the assets.
Casualty Losses, Impairment, and Other
Casualty losses, impairment, and other represents casualty (gains) losses, net of any insurance recoveries, and provisions for impairment when the carrying amount of our single-family residential properties is not recoverable.
Gain on Sale of Property, net of tax
Gain on sale of property, net of tax consists of net gains and losses resulting from sales of our homes.
Income (Losses) from Investments in Unconsolidated Joint Ventures
Income (losses) from investments in unconsolidated joint ventures consists of our share of net earnings and losses from investments in unconsolidated joint ventures accounted for using the equity method.
Other, net
Other, net includes interest income, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses.
Results of Operations
Portfolio Information
As of June 30, 2026 and 2025, we owned 85,509 and 85,905 single-family rental homes, respectively, in our total portfolio. During the three months ended June 30, 2026 and 2025, we acquired 196 and 939 homes, respectively, and sold 657 and 295 homes, respectively. During the three months ended June 30, 2026 and 2025, we owned an average of 85,798 and 85,505 single-family rental homes, respectively. During the six months ended June 30, 2026 and 2025, we acquired 457 and 1,516 homes, respectively, and sold 1,140 and 749 homes, respectively. During the six months ended June 30, 2026 and 2025, we owned an average of 85,962 and 85,349 single-family rental homes, respectively.
We believe presenting information about the portion of our total portfolio that has been fully operational for the entirety of both a given reporting period and its 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. To do so, we provide information regarding the performance of our Same Store portfolio.
As of June 30, 2026, our Same Store portfolio consisted of 77,326 single-family rental homes.
52
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
The following table sets forth a comparison of the results of operations for the three months ended June 30, 2026 and 2025:
For the Three Months Ended June 30,
($ in thousands) 2026 2025 $ Change % Change
Revenues:
Rental revenues and other property income $ 678,352 $ 659,107 $ 19,245 2.9 %
Management fee revenues 19,738 22,294 (2,556) (11.5) %
Homebuilding revenues 49,460 — 49,460 N/M
Total revenues 747,550 681,401 66,149 9.7 %
Expenses:
Property operating and maintenance 255,712 244,278 11,434 4.7 %
Property management expense 37,726 35,833 1,893 5.3 %
Homebuilding cost of sales 42,215 — 42,215 N/M
General and administrative 29,332 23,591 5,741 24.3 %
Interest expense 93,987 87,414 6,573 7.5 %
Depreciation and amortization 194,299 185,455 8,844 4.8 %
Casualty losses, impairment, and other 4,236 3,029 1,207 39.8 %
Total expenses 657,507 579,600 77,907 13.4 %
Gain on sale of property, net of tax 132,308 46,591 85,717 184.0 %
Losses from investments in unconsolidated joint ventures (2,402) (4,802) 2,400 50.0 %
Other, net (298) (2,223) 1,925 86.6 %
Net income $ 219,651 $ 141,367 $ 78,284 55.4 %
Revenues
For the three months ended June 30, 2026 and 2025, total revenues were $747.6 million and $681.4 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
For the three months ended June 30, 2026 and 2025, total portfolio rental revenues and other property income totaled $678.4 million and $659.1 million, respectively, an increase of 2.9%, driven by an increase in average monthly rent per occupied home, a 293 home increase between periods in the average number of homes owned, and a 30 bps increase in average occupancy.
Average occupancy for the three months ended June 30, 2026 and 2025 for the total portfolio was 95.9% and 95.6%, respectively. Average monthly rent per occupied home for the total portfolio for the three months ended June 30, 2026 and 2025 was $2,460 and $2,434, respectively, a 1.1% increase. For our Same Store portfolio, average occupancy was 97.1% and 97.3% for the three months ended June 30, 2026 and 2025, respectively, and average monthly rent per occupied home for the three months ended June 30, 2026 and 2025 was $2,480 and $2,431, respectively, a 2.0% increase.
The annualized turnover rate for the Same Store portfolio for the three months ended June 30, 2026 and 2025 was 22.8% and 24.6%, respectively. For the Same Store portfolio, a home remained unoccupied on average for 46 and 40 days between residents for the three months ended June 30, 2026 and 2025, respectively. The increase in days to re-resident resulted in an overall decrease in average Same Store occupancy on a year over year basis.
To monitor prospective changes in average monthly rent per occupied home, we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home, in each case, net of any amortized non-service concessions, to calculate net effective rental rate growth. Leases are either renewal leases, where our current resident stays for a subsequent lease term, or new leases, where our previous resident moves out and a new resident signs a lease to occupy the same home.
53
Renewal lease net effective rental rate growth for the total portfolio averaged 3.2% and 4.6% for the three months ended June 30, 2026 and 2025, respectively, and new lease net effective rental rate growth for the total portfolio averaged 1.1% and 2.0% for the three months ended June 30, 2026 and 2025, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 3.3% and 4.7% for the three months ended June 30, 2026 and 2025, respectively, and new lease net effective rental rate growth averaged 1.1% and 2.1% for the three months ended June 30, 2026 and 2025, respectively.
Other property income for the three months ended June 30, 2026 increased compared to June 30, 2025, primarily due to enhanced value-add revenue programs and increased utility recoveries as new leases are entered into, among other things.
For the three months ended June 30, 2026 and 2025, management fee revenues totaled $19.7 million and $22.3 million, respectively. The 11.5% decrease was primarily driven by lower disposition management fee revenue, with the number of homes disposed decreasing by 431 homes during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Additionally, the average number of homes for which we provide property and asset management services decreased from 24,770 homes during the three months ended June 30, 2025 to 23,744 homes during the three months ended June 30, 2026.
For the three months ended June 30, 2026, homebuilding revenues totaled $49.5 million related to our acquisition of ResiBuilt on January 14, 2026.
Expenses
For the three months ended June 30, 2026 and 2025, total expenses were $657.5 million and $579.6 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
For the three months ended June 30, 2026, property operating and maintenance expense increased to $255.7 million from $244.3 million for the three months ended June 30, 2025. The 4.7% increase in property operating and maintenance expense is primarily attributable to increases in utilities, property taxes, and HOA expense.
Property management expense and general and administrative expense increased to $67.1 million from $59.4 million for the three months ended June 30, 2026 and 2025, respectively, primarily due to increased personnel and other costs related to our homebuilding platform and overall increases in salary and burden.
For the three months ended June 30, 2026, homebuilding cost of sales totaled $42.2 million related to our acquisition of ResiBuilt on January 14, 2026.
Interest expense increased to $94.0 million for the three months ended June 30, 2026 from $87.4 million for the three months ended June 30, 2025. The increase in interest expense was primarily due to $339.8 million increase in gross debt outstanding, partially offset by a 6 bps decrease in our weighted average interest rate, in each case, as of June 30, 2026 compared to June 30, 2025.
Depreciation and amortization expense increased to $194.3 million for the three months ended June 30, 2026 from $185.5 million for the three months ended June 30, 2025 due to higher real estate depreciation resulting from cumulative capital expenditures, increased corporate depreciation related to technology improvements and new automobiles for our field operations, and increased amortization of intangible assets related to our newly acquired homebuilding platform.
Casualty losses, impairment, and other expenses were $4.2 million and $3.0 million for the three months ended June 30, 2026 and 2025, respectively. Expense during both periods is primarily comprised of casualty and other insurance losses and reserves.
Gain on Sale of Property, net of tax
Gain on sale of property, net of tax was $132.3 million and $46.6 million for the three months ended June 30, 2026 and 2025, respectively. The increase resulted from an increase in the number of homes sold from 295 for the three months ended June 30, 2025 to 657 for the three months ended June 30, 2026 and an increase in the disposition proceeds received per home between periods.
54
Losses from Investments in Unconsolidated Joint Ventures
Our share of equity in losses from unconsolidated joint ventures was $2.4 million for the three months ended June 30, 2026, compared to a loss of $4.8 million for the three months ended June 30, 2025. The change was primarily driven by an increase in our share of income and distributions from the FNMA joint venture from 10.0% to 50.0% as a result of achieving a promote interest threshold pursuant to the terms of the joint venture agreement and gains on dispositions of homes within that portfolio.
Other, net
Other, net decreased to $0.3 million of expense for the three months ended June 30, 2026 from $2.2 million of expense for the three months ended June 30, 2025, primarily due to reduced transaction costs and increased miscellaneous income.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
The following table sets forth a comparison of the results of operations for the six months ended June 30, 2026 and 2025:
For the Six Months Ended June 30,
($ in thousands) 2026 2025 $ Change % Change
Revenues:
Rental revenues and other property income $ 1,348,867 $ 1,312,178 $ 36,689 2.8 %
Management fee revenues 39,590 43,702 (4,112) (9.4) %
Homebuilding revenues 93,205 — 93,205 N/M
Total revenues 1,481,662 1,355,880 125,782 9.3 %
Expenses:
Property operating and maintenance 506,846 481,727 25,119 5.2 %
Property management expense 77,051 72,572 4,479 6.2 %
Homebuilding cost of sales 81,349 — 81,349 N/M
General and administrative 61,651 53,109 8,542 16.1 %
Interest expense 189,300 171,668 17,632 10.3 %
Depreciation and amortization 387,441 368,601 18,840 5.1 %
Casualty losses, impairment, and other 8,581 7,712 869 11.3 %
Total expenses 1,312,219 1,155,389 156,830 13.6 %
Gain on sale of property, net of tax 219,402 118,257 101,145 85.5 %
Losses from investments in unconsolidated joint ventures (5,487) (10,020) 4,533 45.2 %
Other, net (2,642) (1,079) (1,563) (144.9) %
Net income $ 380,716 $ 307,649 $ 73,067 23.8 %
Revenues
For the six months ended June 30, 2026 and 2025, total revenues were $1,481.7 million and $1,355.9 million, respectively. Set forth below is a discussion of changes in the individual components of total revenues.
For the six months ended June 30, 2026 and 2025, total portfolio rental revenues and other property income totaled $1,348.9 million and $1,312.2 million, respectively, an increase of 2.8%, driven by an increase in average monthly rent per occupied home and a 613 home increase between periods in the average number of homes owned, partially offset by a 10 bps reduction in average occupancy.
Average occupancy for the six months ended June 30, 2026 and 2025 for the total portfolio was 95.3% and 95.4%, respectively. Average monthly rent per occupied home for the total portfolio for the six months ended June 30, 2026 and 2025 was $2,459 and $2,429, respectively, a 1.2% increase. For our Same Store portfolio, average occupancy was 96.7% and 97.3% for the six months ended June 30, 2026 and 2025, respectively, and average monthly rent per occupied home for the six months ended June 30, 2026 and 2025 was $2,475 and $2,424, respectively, a 2.1% increase.
55
The annualized turnover rate for the Same Store portfolio for the six months ended June 30, 2026 and 2025 was 21.9% and 22.3%, respectively. For the Same Store portfolio, a home remained unoccupied on average for 54 and 44 days between residents for the six months ended June 30, 2026 and 2025, respectively. The increase in days to re-resident resulted in an overall decrease in average Same Store occupancy on a year over year basis.
To monitor prospective changes in average monthly rent per occupied home, we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home, in each case, net of any amortized non-service concessions, to calculate net effective rental rate growth. Leases are either renewal leases, where our current resident stays for a subsequent lease term, or new leases, where our previous resident moves out and a new resident signs a lease to occupy the same home.
Renewal lease net effective rental rate growth for the total portfolio averaged 3.4% and 4.9% for the six months ended June 30, 2026 and 2025, respectively, and new lease net effective rental rate growth for the total portfolio averaged (1.2)% and 0.9% for the six months ended June 30, 2026 and 2025, respectively. For our Same Store portfolio, renewal lease net effective rental rate growth averaged 3.5% and 4.9% for the six months ended June 30, 2026 and 2025, respectively, and new lease net effective rental rate growth averaged (1.1)% and 1.0% for the six months ended June 30, 2026 and 2025, respectively.
Other property income for the six months ended June 30, 2026 increased compared to June 30, 2025, primarily due to enhanced value-add revenue programs and increased utility recoveries as new leases are entered into, among other things.
For the six months ended June 30, 2026 and 2025, management fee revenues totaled $39.6 million and $43.7 million, respectively. The 9.4% decrease was primarily driven by lower disposition management fee revenue, with the number of homes disposed decreasing by 666 homes during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Additionally, the average number of homes for which we provide property and asset management services decreased from 24,958 homes for the six months ended June 30, 2025 to 23,739 homes for the six months ended June 30, 2026.
For the six months ended June 30, 2026, homebuilding revenues totaled $93.2 million after our acquisition of ResiBuilt on January 14, 2026.
Expenses
For the six months ended June 30, 2026 and 2025, total expenses were $1,312.2 million and $1,155.4 million, respectively. Set forth below is a discussion of changes in the individual components of total expenses.
For the six months ended June 30, 2026, property operating and maintenance expense increased to $506.8 million from $481.7 million for the six months ended June 30, 2025. The 5.2% increase in property operating and maintenance expense is primarily attributable to increases in utilities, property taxes, repairs and maintenance, and HOA expense.
Property management expense and general and administrative expense increased to $138.7 million from $125.7 million for the six months ended June 30, 2026 and 2025, respectively, primarily due to increased personnel and other costs related to our homebuilding platform and overall increases in salary and burden.
For the six months ended June 30, 2026, homebuilding cost of sales totaled $81.3 million after our acquisition of ResiBuilt on January 14, 2026.
Interest expense increased to $189.3 million for the six months ended June 30, 2026 from $171.7 million for the six months ended June 30, 2025. The increase in interest expense was primarily due to $339.8 million increase in gross debt outstanding, partially offset by a 6 bps decrease in our weighted average interest rate, in each case, as of June 30, 2026 compared to June 30, 2025.
Depreciation and amortization expense increased to $387.4 million for the six months ended June 30, 2026 from $368.6 million for the six months ended June 30, 2025 due to higher real estate depreciation resulting from cumulative capital expenditures, increased corporate depreciation related to technology improvements and new automobiles for our field operations, and increased amortization of intangible assets related to our newly acquired homebuilding platform.
Casualty losses, impairment, and other expenses were $8.6 million and $7.7 million for the six months ended June 30, 2026 and 2025, respectively. Expense during both periods is primarily comprised of casualty and other insurance losses and reserves.
56
Gain on Sale of Property, net of tax
Gain on sale of property, net of tax was $219.4 million and $118.3 million for the six months ended June 30, 2026 and 2025, respectively. The increase resulted from an increase in the number of homes sold from 749 for the six months ended June 30, 2025 to 1,140 for the six months ended June 30, 2026 and an increase in the disposition proceeds received per home between periods.
Losses from Investments in Unconsolidated Joint Ventures
Our share of losses from unconsolidated joint ventures was $5.5 million and $10.0 million for the six months ended June 30, 2026 and 2025, respectively. The change was primarily driven by an increase in our share of income and distributions from the FNMA joint venture from 10.0% to 50.0% as a result of achieving a promote interest threshold pursuant to the terms of the joint venture agreement and gains on dispositions of homes within that portfolio.
Other, net
Other, net increased to $2.6 million of expense for the six months ended June 30, 2026 from $1.1 million of expense for the six months ended June 30, 2025, primarily due to increased transaction costs and expenditures for certain litigation and regulatory matters, partially offset by increased miscellaneous income.
Liquidity and Capital Resources
Our liquidity and capital resources as of June 30, 2026 and December 31, 2025 include unrestricted cash and cash equivalents of $75.8 million and $130.0 million, respectively, a 41.7% decrease primarily due to repurchases of shares of our common stock and the acquisition of Resibuilt as more fully described below. As of June 30, 2026, $1,470.0 million of our Revolving Facility is undrawn, and there are no restrictions on our ability to draw funds thereunder provided we remain in compliance with all covenants. We have no debt reaching final maturity until June 2027.
Debt Issuance and Prepayment
On July 8, 2026, in a public offering under our existing shelf registration statement, we issued $500.0 million aggregate principal amount of 4.95% Senior Notes which mature on February 1, 2032.
On July 9, 2026, we used proceeds from the issuance of unsecured notes to make a $488.0 million voluntary prepayment on the outstanding principal balance of IH 2017-1 and incurred a prepayment premium of $4.9 million.
Share Repurchase Programs
From time to time, our board of directors may authorize share repurchase programs pursuant to which we may acquire shares of our common stock through open market purchases or negotiated transactions, including through Rule 10b5-1 plans. Unless otherwise specified, share repurchase programs do not have an expiration date. On October 28, 2025 and April 27, 2026, our board of directors authorized separate share repurchase programs, under which we may acquire shares of our common stock through the open market or negotiated transactions up to an aggregate purchase price of $500.0 million pursuant to each program.
During the three and six months ended June 30, 2026, we repurchased an aggregate of 3,478,690 and 20,579,736 shares of our common stock for a total cost of $100.1 million and $539.2 million, respectively, inclusive of legal fees and commissions. As of June 30, 2026, $400.0 million remains available for future repurchases under the April 27, 2026 share repurchase program.
Repurchases under share repurchase programs are made at our discretion and are not required or guaranteed. The timing and actual number of shares repurchased depends on a variety of factors, including price, corporate and regulatory requirements, market conditions, and other liquidity needs and priorities.
Acquisition of ResiBuilt
On January 14, 2026, we acquired ResiBuilt, a leading fee homebuilder specializing in single-family rental communities with expertise in land development and construction general contracting across high-growth Southeast markets.
57
Other
Our ability to access capital as well as to use cash from operations to continue to meet our liquidity needs, all of which are highly uncertain and cannot be predicted, could be affected by various risks and uncertainties, including, but not limited to, the effects of general economic conditions, including inflation and interest rates, as detailed in Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K.
58
Long-Term Debt Strategy
The following table summarizes certain information about our debt obligations as of June 30, 2026 ($ in thousands):
Debt Instruments(1) Balance (Gross of Retained Certificates and Unamortized Discounts) Balance (Net of Retained Certificates) Weighted Average Interest Rate(2) Weighted Average Years to Maturity(3) Amount Freely Prepayable (Gross)
Secured:
IH 2017-1(4) $ 987,852 $ 932,353 4.23% 0.9 $ —
IH 2019-1(5) 400,386 400,386 3.59% 4.9 —
Total secured 1,388,238 $ 1,332,739 4.04% 2.1 —
Unsecured:
2024 Term Loan Facility(6) $ 1,750,000 S + 85 bps 3.2 $ 1,750,000
2022 Term Loan Facility(6)(7) 725,000 S + 85 bps 3.8 725,000
Revolving Facility(6) 280,000 S + 78 bps 3.2 280,000
Unsecured Notes — May 2028 150,000 2.46% 1.9 —
Unsecured Notes — November 2028 600,000 2.30% 2.4 —
Unsecured Notes — August 2030 450,000 5.45% 4.1 —
Unsecured Notes — August 2031 650,000 2.00% 5.1 —
Unsecured Notes — April 2032 600,000 4.15% 5.8 —
Unsecured Notes — January 2033 600,000 4.95% 6.6 —
Unsecured Notes — August 2033 350,000 5.50% 7.1 —
Unsecured Notes — January 2034 400,000 2.70% 7.6
Unsecured Notes — February 2035 500,000 4.88% 8.6 —
Unsecured Notes — May 2036 150,000 3.18% 9.9 —
Total unsecured(8)(9) 7,205,000 3.89% 4.8 2,755,000
Total debt(8) 8,593,238 3.92% 4.4 $ 2,755,000
Unamortized discounts (22,365)
Deferred financing costs, net (44,182)
Total debt per balance sheet 8,526,691
Retained certificates (55,499)
Cash and restricted cash, excluding security deposits and letters of credit (137,316)
Deferred financing costs, net 44,182
Unamortized discounts 22,365
Net debt $ 8,400,423
(1)For detailed information about and definition of each of our financing arrangements, see Part I. Item 1. “Financial Statements — Note 7 of Notes to Condensed Consolidated Financial Statements.” For information about our derivative instruments that hedge floating rate debt, see Part I. Item 1. “Financial Statements — Note 8 of Notes to Condensed Consolidated Financial Statements.”
(2)Variable interest rate loans are indexed to a Secured Overnight Financing Rate (“SOFR”) index rate determined by reference to a published forward-looking SOFR rate for the interest period relevant to such borrowing (“Term SOFR”), reflected as “S” in the table above.
(3)Weighted average years to maturity assumes all extension options are exercised, which are subject to certain conditions being met.
(4)IH 2017-1 bears interest at a fixed rate of 4.23% per annum, equal to the market determined pass-through rate payable on the certificates including applicable servicing fees. On July 9, 2026, we used proceeds from the issuance of unsecured notes to make a $488.0 million voluntary prepayment on the outstanding principal balance of IH 2017-1 and incurred a prepayment premium of $4.9 million.
59
(5)IH 2019-1 bears interest at a fixed rate of 3.59% per annum including applicable servicing fees for the first 11 years and for the twelfth year bears interest at a floating rate based on a spread of 147 bps over a comparable or successor rate to the one month London Interbank Offer Rate as provided for in the loan agreement, including applicable servicing fees, subject to certain adjustments as outlined in the loan agreement.
(6)As of June 30, 2026, interest rate is based on Term SOFR of 3.65% plus the applicable margin for the 2024 Term Loan and the Revolving Facility.
(7)If we exercise the two one year extension options, the maturity date for the 2022 Term Loan Facility will be April 28, 2030.
(8)For unsecured debt and total debt, the weighted average interest rate is calculated based on June 30, 2026 Term SOFR of 3.65%, and includes the impact of interest rate swap agreements effective as of that date.
(9)On July 8, 2026, in a public offering under our existing shelf registration statement, we issued $500.0 million aggregate principal amount of 4.95% Senior Notes which mature on February 1, 2032.
As part of our long-term debt strategy, our goal is to maintain or improve our credit ratings, and, over time, we generally intend to be a predominantly unsecured borrower with a target net debt of approximately 5.5 to 6.0 times trailing twelve months Adjusted EBITDAre (see “— Non-GAAP Measures — EBITDA, EBITDAre, and Adjusted EBITDAre”). To facilitate our long-term debt strategy, we expect to seek to, among other things, (a) refinance a significant portion of our secured debt maturing in 2027 with unsecured debt, including potential unsecured bond issuances and/or (b) repay a portion of such debt. There can be no assurance that we will be successful in implementing our long-term debt strategy, improving our credit ratings, or adhering to our targets in the short or medium term or at all, or that we will not change our strategy or targets in the future. We may from time to time fall outside of our target ranges. In addition, we cannot assure you that we will be able to access the capital and credit markets to obtain additional unsecured debt financing or that we will be able to obtain financing on terms favorable to us. For further discussion of risks related to our indebtedness, see Part I. Item 1A. “Risk Factors — Risks Related to Our Indebtedness,” including “Risk Factors — Risks Related to Our Indebtedness — We may be unable to obtain financing through the debt and equity markets, which would have a material adverse effect on our growth strategy and our financial condition and results of operations” of our Annual Report on Form 10-K.
Short-Term and Long-Term Liquidity Needs
Liquidity is a measure of our ability to meet potential cash requirements, maintain our assets, fund our operations, make dividend payments to our stockholders, and meet other general requirements of our business. Our liquidity, to a certain extent, is subject to general economic, financial, competitive, and other factors beyond our control. Our short-term liquidity requirements consist primarily of:
•commitments for the development or acquisition of homes;
•renovation of newly-acquired homes;
•funding commitments for construction and development loans made to homebuilders;
•HOA fees (as applicable), property taxes, insurance premiums, and the ongoing maintenance of our homes;
•property management, general and administrative, and other entity-level commitments and expenses;
•interest expense;
•dividend payments to our stockholders; and
•required contributions to our joint ventures.
We believe our rental income, net of total expenses, will generally provide cash flow sufficient to fund operations and dividend payments on a short-term basis. Additionally, we have guaranteed the funding of certain tax, insurance, and non-conforming property reserves related to the financing of one of our joint ventures. We do not expect these guarantees to have a material current or future effect on our liquidity.
General economic conditions in the United States have continued to fluctuate in recent quarters, and concerns persist regarding adverse macroeconomic conditions, such as inflation, interest rate volatility, political dissension, and labor market conditions. Fluctuating economic conditions and uncertainty in financial markets may negatively impact our operating cash flow such that we are unable to make required debt service payments, which would result in an event of default for any debt instrument under whose loan agreement such payments were not made. Specifically, the collateral within individual borrower entities may underperform, resulting in cash flow shortfalls for debt service while consolidated cash flows are sufficient to
60
fund our operations. If an event of default occurs for our secured debt, our loan agreements provide certain remedies, including our ability to fund shortfalls from consolidated cash flow; and such an event of default would not result in an immediate acceleration of the loan.
Our real estate assets are illiquid in nature. A timely liquidation of assets may not be a viable source of short-term liquidity should a cash flow shortfall arise, and we may need to source liquidity from other financing sources, such as the Revolving Facility which had an undrawn balance of $1,470.0 million as of June 30, 2026.
Our long-term liquidity requirements consist primarily of funds necessary to pay for the acquisition of, and non-recurring capital expenditures for, our homes and principal and interest payments of our indebtedness. We intend to satisfy our long-term liquidity needs through cash provided by operations, long-term secured and unsecured borrowings, the issuance of debt and equity securities, and property dispositions. As a REIT, we are required to distribute to our stockholders at least 90% of our taxable income, excluding net capital gain, on an annual basis. Therefore, as a general matter, it is unlikely that we will be able to retain substantial cash balances from our annual taxable income that could be used to meet our liquidity needs. Instead, we will need to meet these needs from external sources of capital and amounts, if any, by which our cash flow generated from operations exceeds taxable income.
Cash Flows
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025:
For the Six Months Ended June 30,
($ in thousands) 2026 2025 $ Change % Change
Net cash provided by operating activities $ 676,663 $ 682,978 $ (6,315) (0.9) %
Net cash provided by (used in) investing activities 81,076 (416,915) 497,991 119.4 %
Net cash used in financing activities (785,321) (402,032) (383,289) (95.3) %
Change in cash, cash equivalents, and restricted cash $ (27,582) $ (135,969) $ 108,387 79.7 %
Operating Activities
Our cash flows provided by operating activities depend on numerous factors, including the occupancy level of our homes, the rental rates achieved on our leases, the collection of rent from our residents, and the amount of other operating revenues and expenses. Net cash provided by operating activities was $676.7 million and $683.0 million for the six months ended June 30, 2026 and 2025, respectively, a decrease of 0.9%. The decrease in cash provided by operating activities is primarily due to a net $13.1 million of cash used in operations between periods from changes in operating assets and liabilities, partially offset by improved operational profitability.
Investing Activities
Net cash provided by (used in) investing activities consists primarily of proceeds from property sales and distributions from joint ventures, partially offset by expenditures for the acquisition, initial renovations, and ongoing capital improvements to our homes, the purchase price of our recent homebuilding platform acquisition, fundings of construction loans, investments in unconsolidated joint ventures and land and construction in progress.
Net cash provided by (used in) investing activities was $81.1 million and $(416.9) million for the six months ended June 30, 2026 and 2025, respectively, an increase of $498.0 million. The net increase in cash provided by investing activities resulted primarily from the combined effect of the following significant changes in cash flows period over period: (1) a decrease in cash used for the acquisition and initial renovations of homes; (2) an increase in cash proceeds received from the sale of single-family homes; (3) the purchase of a homebuilding platform in the current period; and (4) an increase in cash used for fundings of construction loans.
Acquisition and initial renovation spend decreased by $383.3 million from period to period due to a decrease in the number of homes acquired from 1,516 during the six months ended June 30, 2025 to 457 homes acquired during the six months ended June 30, 2026. Proceeds from the sale of single-family homes increased $201.4 million due to an increase in the number of homes sold from 749 during the six months ended June 30, 2025 to 1,140 homes sold during the six months
61
ended June 30, 2026 and an increase in average net proceeds per home. On January 14, 2026, we invested $91.1 million for the acquisition of ResiBuilt. Cash used for fundings of construction loans increased to $24.3 million due to commencement of our construction and development lending program in the second half of 2025.
Financing Activities
Net cash used in financing activities was $785.3 million for the six months ended June 30, 2026 compared to $402.0 million for the six months ended June 30, 2025. The change between periods is primarily due to the following financing transactions. During the six months ended June 30, 2026, we completed the repurchase of $547.3 million of shares of our common stock under our share repurchase programs. No such repurchases occurred during the six months ended June 30, 2025. For the six months ended June 30, 2026, $135.0 million of net proceeds from our Revolving Facility and proceeds from the sale of homes were used to acquire ResiBuilt and repurchase shares of our common stock. For the six months ended June 30, 2025, we made $30.0 million of net payments on the Revolving Facility. We also made dividend and distribution payments totaling $365.5 million during the six months ended June 30, 2026 compared to $358.1 million during the six months ended June 30, 2025, which were funded by cash flows from operations.
62
Contractual Obligations
Our contractual obligations as of June 30, 2026, consist of the following:
($ in thousands) Total 2026(1) 2027-2028 2029-2030 Thereafter
Secured Debt(2)(3)(4) $ 1,498,415 $ 28,068 $ 1,034,934 $ 28,730 $ 406,683
Unsecured Notes(2)(3)(5) 5,471,683 84,405 1,084,119 743,368 3,559,791
Term Loan Facilities(2)(3)(6)(7) 2,857,142 56,950 226,252 2,573,940 —
Revolving Facility(2)(3)(6)(7)(8) 328,691 7,677 30,500 290,514 —
Derivative instruments(2)(9) (27,039) (6,284) (19,473) (1,282) —
Purchase commitments(10) 64,391 43,206 21,185 — —
Operating leases 52,250 3,165 12,541 10,491 26,053
Finance leases 20,211 3,658 11,948 4,605 —
Total $ 10,265,744 $ 220,845 $ 2,402,006 $ 3,650,366 $ 3,992,527
(1)Includes estimated payments for the remaining six months of 2026.
(2)For detailed information about each of our financing arrangements and derivative instruments see Part I. Item 1. “Financial Statements — Note 7 of Notes to Condensed Consolidated Financial Statements” and “— Note 8 of Notes to Condensed Consolidated Financial Statements.”
(3)Includes estimated interest payments through the extended maturity date, as applicable, based on the principal amount outstanding as of June 30, 2026.
(4)On July 9, 2026, we used proceeds from the issuance of unsecured notes to make a $488.0 million voluntary prepayment on the outstanding principal balance of IH 2017-1 and incurred a prepayment premium of $4.9 million.
(5)On July 8, 2026, in a public offering under our existing shelf registration statement, we issued $500.0 million aggregate principal amount of 4.95% Senior Notes which mature on February 1, 2032.
(6)Interest is calculated at rates in effect as of June 30, 2026, including the indexed rate, any applicable margin, and that rate is held constant until the maturity date. As of June 30, 2026, Term SOFR was 3.65%.
(7)Calculated based on the maturity date if we exercise each of the remaining extension options available, which are subject to certain conditions being met. See Part I. Item 1. “Financial Statements — Note 7 of Notes to Condensed Consolidated Financial Statements” for a description of maturity dates without consideration of extension options.
(8)Includes the related facility fee, as applicable.
(9)Includes payments (receipts) related to interest rate swap obligations calculated using Term SOFR. As of June 30, 2026, Term SOFR was 3.65%.
(10)Represents commitments, net of previously funded deposits, to acquire 197 homes pursuant to binding development and purchase agreements with certain third-party homebuilders as of June 30, 2026.
Additionally, we have commitments, which are not reflected in the table above, to make additional capital contributions to our joint ventures and to fund future draws under construction and development loans made to homebuilders. As of June 30, 2026, our remaining equity commitments to our joint ventures total $93.7 million, and our remaining funding commitments for construction and development loans total $247.9 million.
Supplemental Guarantor Information
INVH, INVH LP, the General Partner, and IH Merger Sub, LLC (“IH Merger Sub”) have filed a registration statement on Form S-3 with the SEC registering, among other securities, debt securities of INVH LP, fully and unconditionally guaranteed, on a joint and several basis, by INVH, the General Partner, and/or IH Merger Sub. Pursuant to Rule 3-10 of Regulation S-X, subsidiary issuers of obligations guaranteed by the parent are not required to provide separate financial statements, provided that the subsidiary obligor is consolidated into the parent company’s consolidated financial statements, the parent guarantee is “full and unconditional” and, subject to certain exceptions as set forth below, the alternative disclosure required by Rule 13-01 is provided, which includes narrative disclosure and summarized financial information. Accordingly, separate consolidated financial statements of INVH LP, the General Partner, and IH Merger Sub have not been presented.
63
Furthermore, as permitted under Rule 13-01(a)(4)(vi) of Regulation S-X, we have excluded the summarized financial information for the INVH LP, the General Partner, and IH Merger Sub, because the combined assets, liabilities, and results of operations of INVH, INVH LP, the General Partner, and IH Merger Sub are not materially different than the corresponding amounts in our condensed consolidated financial statements, and management believes such summarized financial information would be repetitive and would not provide incremental value to investors.
Purchase of Outstanding Debt Securities or Loans
As market conditions warrant, we may from time to time seek to purchase our outstanding debt or debt securities that we may issue in the future, in privately negotiated or open market transactions, by tender offer or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any purchases made by us may be funded by the use of cash on our condensed consolidated balance sheet or the incurrence of new secured or unsecured debt, including borrowings under our Credit Facility. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. Any such purchases may be with respect to a substantial amount of a particular class or series of debt, with the attendant reduction in the trading liquidity of such class or series. In addition, any such purchases made at prices below the “adjusted issue price” (as defined for United States federal income tax purposes) may result in taxable cancellation of indebtedness income to us, which amounts may be material, and in related adverse tax consequences to us.
64
Critical Accounting Policies and Estimates
Critical accounting policies are those accounting policies that management believes are important to the portrayal of our financial condition and results and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. We believe that our critical accounting policies pertain to our investments in single-family residential properties, including acquisition of real estate assets, related cost capitalization, provisions for impairment, and single-family residential properties held for sale. These critical policies and estimates are summarized in Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K. There were no material changes to our critical accounting policies during the six months ended June 30, 2026.
For a discussion of recently adopted accounting standards, if any, see Part I. Item 1. “Financial Statements — Note 2 of Notes to Condensed Consolidated Financial Statements.”
Segment Reporting
Our principal business is acquiring, renovating, leasing, operating, developing, and managing single-family residential properties. Under the provisions of ASC 280, Segment Reporting, we have determined that we currently operate in one reportable segment.
Our Chief Executive Officer is our chief operating decision maker (“CODM”). We concluded that we have one reportable segment based on the way our CODM regularly reviews internally reported financial information to evaluate performance, make operating decisions, and allocate resources at a consolidated level. Net income as reported on our condensed consolidated statements of operations is a primary metric utilized by the CODM to analyze the performance of the segment, including budget versus actual performance, and to allocate resources.
65
Non-GAAP Measures
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 GAAP before the following items: interest expense; income tax expense; depreciation and amortization; and adjustments for unconsolidated joint ventures. The National Association of Real Estate Investment Trusts (“Nareit”) recommends as a best practice that REITs that report an EBITDA performance measure also report EBITDAre. Consistent with the Nareit definition, we define EBITDAre as EBITDA, further adjusted for the following: gain on sale of property, net of tax; and impairment on depreciated real estate investments. Adjusted EBITDAre is defined as EBITDAre before the following items: share-based compensation expense; business reorganization costs; casualty (gains) losses and reserves, net; 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.
Our management uses EBITDA, EBITDAre, and Adjusted EBITDAre in a number of ways to assess our condensed consolidated financial and operating performance, and we believe these measures are helpful to management and external users in identifying trends in our performance. EBITDA, EBITDAre, and Adjusted EBITDAre help management identify controllable expenses and make decisions designed to help us meet our current financial goals and optimize our financial performance, while neutralizing the impact of capital structure on results. Accordingly, we believe these metrics measure our financial performance based on operational factors that management can impact in the short-term, namely our cost structure and expenses.
We believe that the presentation of EBITDA, EBITDAre, and Adjusted EBITDAre provides information useful to investors in assessing our financial condition and results of operations. 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.
66
The following table presents a reconciliation of net income (as determined in accordance with GAAP) to EBITDA, EBITDAre, and Adjusted EBITDAre for each of the periods indicated:
For the Three Months Ended June 30, For the Six Months Ended June 30,
($ in thousands) 2026 2025 2026 2025
Net income available to common stockholders $ 218,172 $ 140,665 $ 377,972 $ 306,182
Net income available to participating securities 675 222 1,383 450
Non-controlling interests 804 480 1,361 1,017
Interest expense 93,987 87,414 189,300 171,668
Interest expense in unconsolidated joint ventures 6,265 5,943 12,392 11,569
Depreciation and amortization 194,299 185,455 387,441 368,601
Depreciation and amortization of investments in unconsolidated joint ventures 4,508 3,791 8,976 7,453
EBITDA 518,710 423,970 978,825 866,940
Gain on sale of property, net of tax (132,308) (46,591) (219,402) (118,257)
Impairment on depreciated real estate investments 961 36 1,430 99
Net gain on sale of investments in unconsolidated joint ventures (1,627) (261) (3,048) (406)
EBITDAre 385,736 377,154 757,805 748,376
Share-based compensation expense(1) 9,346 8,464 20,046 18,621
Business reorganization costs(2) 1,279 35 2,780 2,420
Casualty losses and reserves, net(3) 3,358 3,000 7,293 7,683
Other, net(4) 298 2,223 2,642 1,079
Adjusted EBITDAre $ 400,017 $ 390,876 $ 790,566 $ 778,179
(1)For the three months ended June 30, 2026 and 2025, $1,339 and $1,566 was recorded in property management expense, respectively, and $8,007 and $6,898 was recorded in general and administrative expense, respectively. For the six months ended June 30, 2026 and 2025, $4,265 and $3,217 was recorded in property management expense, respectively, and $15,781 and $15,404 was recorded in general and administrative expense, respectively.
(2)Includes severance, restructuring, acquisition, and integration costs.
(3)Includes our share from unconsolidated joint ventures.
(4)Includes interest income, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses.
Net Operating Income
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, utility expenses, repairs and maintenance, and property administration). NOI excludes: management fee revenues; homebuilding revenues; property management expense; homebuilding cost of sales; general and administrative expense; interest expense; depreciation and amortization; casualty losses, impairment, and other; gain on sale of property, net of tax; losses from investments in unconsolidated joint ventures; and other income and expenses.
We consider NOI to be a meaningful supplemental financial measure of our performance when considered with the financial statements determined in accordance with GAAP. We believe NOI is helpful to investors in understanding the core performance of our real estate operations. 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.
67
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.
The following table presents a reconciliation of net income (as determined in accordance with GAAP) to NOI for our total portfolio and NOI for our Same Store portfolio for each of the periods indicated:
For the Three Months Ended June 30, For the Six Months Ended June 30,
($ in thousands) 2026 2025 2026 2025
Net income available to common stockholders $ 218,172 $ 140,665 $ 377,972 $ 306,182
Net income available to participating securities 675 222 1,383 450
Non-controlling interests 804 480 1,361 1,017
Management fee revenues (19,738) (22,294) (39,590) (43,702)
Homebuilding revenues (49,460) — (93,205) —
Property management expense(1) 37,726 35,833 77,051 72,572
Homebuilding cost of sales 42,215 — 81,349 —
General and administrative(2) 29,332 23,591 61,651 53,109
Interest expense 93,987 87,414 189,300 171,668
Depreciation and amortization 194,299 185,455 387,441 368,601
Casualty losses, impairment, and other . . . . . . . . . . . . . . . . 4,236 3,029 8,581 7,712
Gain on sale of property, net of tax (132,308) (46,591) (219,402) (118,257)
Losses from investments in unconsolidated joint ventures 2,402 4,802 5,487 10,020
Other, net(3) 298 2,223 2,642 1,079
NOI (total portfolio) 422,640 414,829 842,021 830,451
Non-Same Store NOI (29,510) (27,511) (58,534) (52,708)
NOI (Same Store portfolio)(4) $ 393,130 $ 387,318 $ 783,487 $ 777,743
(1)Includes $1,339 and $1,566 of share-based compensation expense for the three months ended June 30, 2026 and 2025, respectively. Includes $4,265 and $3,217 of share-based compensation expense for the six months ended June 30, 2026 and 2025, respectively.
(2)Includes $8,007 and $6,898 of share-based compensation expense for the three months ended June 30, 2026 and 2025, respectively. Includes $15,781 and $15,404 of share-based compensation expense for the six months ended June 30, 2026 and 2025, respectively.
(3)Includes interest income, gains (losses) resulting from investments in equity securities, settlement and other costs related to certain litigation and regulatory matters, and other miscellaneous income and expenses.
(4)The Same Store portfolio totaled 77,326 homes for the three and six months ended June 30, 2026.
68
Funds from Operations, Core Funds from Operations, and Adjusted Funds from Operations
Funds From Operations (“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 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 net income or loss (computed in accordance with GAAP). By excluding depreciation and amortization and gains or losses on sales of real estate, management uses FFO to measure returns on its investments in homes. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the homes that result from use or market conditions nor the level of capital expenditures to maintain the operating performance of the homes, all of which have real economic effect and could materially affect our results from operations, the utility of FFO as a measure of our performance is limited.
Management also believes that FFO, combined with the required GAAP presentations, is useful to investors in providing more meaningful comparisons of the operating performance of a company’s real estate between periods or as compared to other companies. The GAAP measure most directly comparable to FFO is net income or loss. FFO is not used as a measure of our liquidity and should not be considered an alternative to net income or loss or any other measure of financial performance presented in accordance with GAAP. Our FFO may not be comparable to the FFO of other companies due to the fact that not all companies use the same definition of FFO. 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 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. We define Core FFO as FFO adjusted for the following (including adjustments for unconsolidated joint ventures, as applicable): 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; amortization of intangible assets; business reorganization costs; casualty (gains) losses and reserves, net; and (gains) losses on investments in equity and other securities, net, as applicable. We define Adjusted FFO as Core FFO less recurring capital expenditures, including adjustments for unconsolidated joint ventures, that are necessary to help preserve the value and maintain the functionality of our homes. The GAAP measure most directly comparable to Core FFO and Adjusted FFO is net income or loss. 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 Core FFO and Adjusted FFO may not be comparable to the Core FFO and Adjusted FFO of other companies due to the fact that not all companies use the same definition of 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.
69
The following table presents a reconciliation of net income (as determined in accordance with GAAP) to FFO, Core FFO, and Adjusted FFO for each of the periods indicated:
For the Three Months Ended June 30, For the Six Months Ended June 30,
(in thousands, except shares and per share data) 2026 2025 2026 2025
Net income available to common stockholders $ 218,172 $ 140,665 $ 377,972 $ 306,182
Net income available to participating securities 675 222 1,383 450
Non-controlling interests 804 480 1,361 1,017
Depreciation and amortization on real estate assets 185,400 181,059 370,323 360,122
Impairment on depreciated real estate investments 961 36 1,430 99
Net gain on sale of previously depreciated investments in real estate (132,308) (46,591) (219,402) (118,257)
Depreciation and net gain on sale of investments in unconsolidated joint ventures 2,877 3,510 5,919 7,008
FFO 276,581 279,381 538,986 556,621
Non-cash interest expense related to amortization of deferred financing costs, loan discounts, and non-cash interest expense from derivatives(1) 7,847 5,724 18,476 9,358
Share-based compensation expense(2) 9,346 8,464 20,046 18,621
Amortization of intangible assets 2,697 — 5,110 —
Business reorganization costs(3) 1,279 35 2,780 2,420
Casualty losses and reserves, net(1) 3,358 3,000 7,293 7,683
Losses on investments in equity and other securities, net 126 90 339 311
Core FFO 301,234 296,694 593,030 595,014
Recurring capital expenditures(1) (41,800) (43,272) (82,273) (80,619)
Adjusted FFO $ 259,434 $ 253,422 $ 510,757 $ 514,395
Net income available to common stockholders
Weighted average common shares outstanding — diluted(4)(5) 592,497,804 613,261,904 599,328,126 613,312,641
Net income per common share — diluted(4)(5) $ 0.37 $ 0.23 $ 0.63 $ 0.50
FFO, Core FFO, and Adjusted FFO
Weighted average common shares and OP Units outstanding — diluted(3)(4) 595,159,443 615,771,167 601,939,999 615,703,901
FFO per common share — diluted(4)(5) $ 0.46 $ 0.45 $ 0.90 $ 0.90
Core FFO per common share — diluted(4)(5) $ 0.51 $ 0.48 $ 0.99 $ 0.97
AFFO per common share — diluted(4)(5) $ 0.44 $ 0.41 $ 0.85 $ 0.84
(1)Includes our share from unconsolidated joint ventures.
(2)For the three months ended June 30, 2026 and 2025, $1,339 and $1,566 was recorded in property management expense, respectively, and $8,007 and $6,898 was recorded in general and administrative expense, respectively. For the six months ended June 30, 2026 and 2025, $4,265 and $3,217 was recorded in property management expense, respectively, and $15,781 and $15,404 was recorded in general and administrative expense, respectively.
(3)Includes severance, restructuring, acquisition, and integration costs.
(4)Incremental shares attributed to non-vested share-based awards totaling 86,578 and 213,711 for the three months ended June 30, 2026 and 2025, respectively, and 161,403 and 398,992 for the six months ended June 30, 2026 and 2025, respectively, are included in weighted average common shares outstanding in the calculation of net income per common share — diluted. For the computations of FFO, Core FFO, and AFFO per common share — diluted, common share equivalents of 551,698 and 627,961 for the three months ended June 30, 2026 and 2025, respectively, and 624,248 and 758,597 for the six months ended June 30, 2026 and 2025, respectively, related to incremental shares attributed to non-vested share-based awards are included in the denominator.
70
(5)Vested units of partnership interests in INVH LP (“OP Units”) have been excluded from the computation of net income per common share — diluted for the periods above because all net income attributable to the vested OP Units has been recorded as non-controlling interest and thus excluded from net income available to common stockholders. Weighted average vested OP Units of 2,196,519 and 2,095,013 for the three months ended June 30, 2026 and 2025, respectively, and 2,149,028 and 2,031,655 for the six months ended June 30, 2026 and 2025, respectively, are included in the denominator for the computations of FFO, Core FFO, and AFFO per common share — diluted.
71