Invitation Homes Q2 revenue beats estimates on rental income growth

Overview

• U.S. single-family home lessor's Q2 revenue rose 9.7%, beating analyst expectations

• Q2 net income per diluted share rose to $0.37; AFFO per share up 5.9% to $0.44

• Company repurchased $100 mln in shares, raised full-year Core FFO and AFFO guidance midpoints

Outlook

• Invitation Homes raises FY 2026 Core FFO per share midpoint to $1.95

• Company lifts FY 2026 AFFO per share midpoint to $1.65

• Invitation Homes increases FY 2026 wholly owned disposition guidance midpoint by $300 mln to $850 mln

Result Drivers

• RENTAL INCOME GROWTH - Same store core revenues rose 1.6% year over year, primarily due to a 2.0% increase in average monthly rent, partially offset by a 20 basis point decrease in average occupancy

• EXPENSE INCREASES - Same store core operating expenses rose 1.9% year over year, mainly due to a 3.5% increase in fixed expenses, partially offset by a 1.0% decrease in controllable expenses

• HOME DISPOSITIONS - Company disposed of 657 wholly owned homes, many to families purchasing for their own use, generating proceeds used for share repurchases and debt reduction

Company press release: ID:nBw3znjdma

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the residential reits peer group is "buy"

• Wall Street's median 12-month price target for Invitation Homes Inc is $32.00, about 6.5% above its July 28 closing price of $30.05

• The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads

• July 27 - Sun Communities Q2 core FFO rises, lifts NOI outlook

• July 28 - Extra Space Storage lifts 2026 FFO forecast on higher pricing, cost controls

• July 27 - REIT UDR sees 2026 FFO below estimate as higher costs weigh

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)